<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, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 [No Fee Required]
For the transition period from _____ to _____
Commission File Number 1-768
TAX DEFERRED SAVINGS PLAN
(Full title of the Plan)
CATERPILLAR INC.
(Name of issuer of the securities held
pursuant to the Plan)
100 NE ADAMS STREET, PEORIA, ILLINOIS 61629
(Address of principal executive offices)
<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
and Additional Information
December 31, 1997 and 1996
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
May 15, 1998
To the Participants and Plan
Administrator of the Caterpillar
Inc. Tax Deferred Savings Plan
In our opinion, the accompanying statements of net assets available for plan
benefits of the Caterpillar Inc. Tax Deferred Savings Plan and the related
statements of changes in net assets available for plan benefits present fairly,
in all material respects, the net assets available for plan benefits at December
31, 1997 and 1996, and the changes in net assets available for plan benefits for
the years then ended, in conformity with generally accepted accounting
principles. These financial statements are the responsibility of the plan's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these statements in
accordance with generally accepted auditing standards which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed
above.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information schedules of
assets held for investment purposes and of reportable (5%) transactions are
presented for purposes of additional analysis and are not a required part of the
basic financial statements but are additional information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974 (ERISA). These additional
information schedules are the responsibility of the Plan's management. The Fund
Information in the statement of net assets available for plan benefits and the
statement of changes in net assets available for plan benefits is presented for
purposes of additional analysis rather than to present the net assets available
for plan benefits and changes in net assets available for plan benefits of each
fund. The additional information schedules and the Fund Information have been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
The schedules of assets held for investment purposes and of reportable (5%)
transactions that accompany the Plan's financial statements do not disclose the
historical cost of certain plan assets, and certain related sales transactions,
held by a Plan custodian. Disclosure of this information is required by ERISA.
/s/ Price Waterhouse LLP
<PAGE>
Exhibit A
CATERPILLAR INC.
----------------
TAX DEFERRED SAVINGS PLAN
-------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
-------------------------------------------------------------------------
DECEMBER 31, 1997
-----------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------
Preferred Group of Mutual Funds
-----------------------------------------------------
Caterpillar
Common Stable
Stock Principal Short-term Money Inter-
Fund Fund Government Market Value national
---- ---- ---------- ------ ----- --------
<S> <C> <C> <C> <C> <C> <C>
Investments, at fair value (Notes 2 and 4):
Registered investment companies $ $ $ $ $ $
Investments in Master Trust Net Assets 39,455 26,000 2,968 7,824 40,985 11,615
------- ------- ------ ------ ------- -------
Total net assets $39,455 $26,000 $2,968 $7,824 $40,985 $11,615
======= ======= ====== ====== ======= =======
</TABLE>
<TABLE>
<CAPTION>
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>
Investments, at fair value (Notes 2 and 4):
Registered investment companies $ $ $ $ $ $1,098 $ 1,098
Investments in Master Trust Net Assets 44,652 7,709 2,908 5,149 5,230 194,495
------- ------ ------ ------ ------ ------ --------
Total net assets $44,652 $7,709 $2,908 $5,149 $5,230 $1,098 $195,593
======= ====== ====== ====== ====== ====== ========
</TABLE>
(See notes to financial statements)
-2-
<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
Fund Fund Government Market Value International
---- ---- ---------- ------ ----- -------------
<S> <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
--------- --------- ----------- -------- ------- --------
Total net assets $ 21,232 $ 27,658 $ 2,965 $ 10,516 $31,595 $ 11,595
========= ========= =========== ======== ======= ========
<CAPTION>
Fund Information
-------------------------------------------------------------
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>
Investments, at fair value (Notes 2 and 4):
Registered investment companies $ $ $ $ $ $ 688 $ 688
Investments in Master Trust Net Assets $ 33,387 $ 5,818 $ 2,536 $ 2,518 $4,411 $ 154,231
-------- ------- ------- ------- ------- ------- ----------
Total net assets $ 33,387 $ 5,818 $ 2,536 $ 2,518 $4,411 $ 688 $ 154,919
======== ======= ======= ======= ======= ======= ==========
</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, 1997
------------------------------------
(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>
Participant
contributions $ 3,107 $ 1,661 $ 280 $ 1,271 $ 3,273 $ 1,727 $ 4,143 $1,120 $ 487 $ 737 $ $ $ 17,806
------- ------- ------ ------- ------- ------- ------- ------ ------ ------ ------ ------ --------
Investment income:
Net appreciation
in fair value of
registered
investment
companies 102 102
Plan interest in
net investment
income of
Master Trust
(Note 4) 5,713 2,145 177 479 8,930 859 10,631 1,290 211 814 415 31,664
------- ------- ------ ------- ------- ------- ------- ------ ------ ------ ------ ------ --------
Net investment
income 5,713 2,145 177 479 8,930 859 10,631 1,290 211 814 415 102 31,766
------- ------- ------ ------- ------- ------- ------- ------ ------ ------ ------ ------ --------
Withdrawals (1,041) (1,774) (90) (857) (1,512) (295) (1,341) (156) (55) (92) (133) (7,346)
Transfers to other
plans, net (177) (171) (19) (173) (399) (114) (348) (53) (33) (10) (57) 2 (1,552)
Interfund transfers,
net 10,621 (3,519) (345) (3,412) (902) (2,157) (1,820) (310) (238) 1,182 594 306
------- ------- ------ ------- ------- ------- ------- ------ ------ ------ ------ ------ --------
Withdrawals
and transfers,
net 9,403 (5,464) (454) (4,442) (2,813) (2,566) (3,509) (519) (326) 1,080 404 308 (8,898)
------- ------- ------ ------- ------- ------- ------- ------ ------ ------ ------ ------ --------
Increase (decrease)
in net assets 18,223 (1,658) 3 (2,692) 9,390 20 11,265 1,891 372 2,631 819 410 40,674
Net assets:
Beginning of year 21,232 27,658 2,965 10,516 31,595 11,595 33,387 5,818 2,536 2,518 4,411 688 154,919
------- ------- ------ ------- ------- ------- ------- ------ ------ ------ ------ ------ --------
End of year $39,455 $26,000 $2,968 $ 7,824 $40,985 $11,615 $44,652 $7,709 $2,908 $5,149 $5,230 $1,098 $195,593
======= ======= ====== ======= ======= ======= ======= ====== ====== ====== ====== ====== ========
</TABLE>
(See notes to financial statements)
-4-
<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-
Fund Fund Government Market Value national
---- ---- ---------- ------ ----- --------
<S> <C> <C> <C> <C> <C> <C>
Participant contributions $1,814 $2,409 $315 $1,128 $2,315 $1,600
------ ------ ---- ------ ------ ------
Investment income:
Net appreciation in fair value of
registered investment companies
Plan interest in net investment
income of Master Trust (Note 4) 5,008 1,386 132 467 6,180 1,631
------ ------ ----- ----- ------ ------
Net investment income 5,008 1,386 132 467 6,180 1,631
------ ------ ----- ----- ------ ------
Withdrawals (865) (2,145) (110) (893) (1,322) (275)
Transfers to other plans, net (236) (3) (58) (47) (53)
Interfund transfers, net (2,321) (1,728) (204) 1,616 775 (731)
------ ------ ----- ----- ------ ------
Withdrawals and
transfers, net (3,422) (3,873) (317) 665 (594) (1,059)
------ ------ ----- ----- ------ ------
Increase (decrease) in net assets 3,400 (78) 130 2,260 7,901 2,172
Net assets:
Beginning of year 17,832 27,736 2,835 8,256 23,694 9,423
------ ------ ----- ----- ------ ------
End of year $21,232 $27,658 $2,965 $10,516 $31,595 $11,595
======= ======= ====== ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------
---------------------------------------
Self-
Asset Fixed Small Loan Directed
Growth Allocation Income Cap Fund Fund Total
------ ---------- ------ --- ---- ---- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Participant contributions $ 3,681 $ 875 $ 525 $ 332 $ $ $ 14,994
------- ------ ------ ------ ------ ---- --------
Investment income:
Net appreciation in fair value of
registered investment companies 40 40
Plan interest in net investment
income of Master Trust (Note 4) 5,138 720 58 261 287 21,268
------- ------ ------ ------ ------ ---- --------
Net investment income 5,138 720 58 261 287 40 21,308
------- ------ ------ ------ ------ ---- --------
Withdrawals (1,137) (255) (112) (9) (158) (7,281)
Transfers to other plans, net (96) (17) (23) (6) (539)
Interfund transfers, net (1,515) 278 (656) 1,934 1,904 648
------- ------ ------ ------ ------ ---- --------
Withdrawals and
transfers, net (2,748) 6 (791) 1,925 1,740 648 (7,820)
------- ------ ------ ------ ------ ---- --------
Increase (decrease) in net assets 6,071 1,601 (208) 2,518 2,027 688 28,482
Net assets:
Beginning of year 27,316 4,217 2,744 2,384 126,437
------- ------ ------ ------ ------ ---- --------
End of year $33,387 $5,818 $2,536 $2,518 $4,411 $688 $154,919
======= ====== ====== ====== ====== ==== ========
</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 1997, the compensation deferral was limited to (a) the greater of $5,000
or 4% of the participant's compensation (limited by the Internal Revenue Code to
$9,500 in 1997) for participants earning in excess of $75,000 or (b) $9,500 for
participants earning less than $75,000.
During 1996, the compensation deferral was limited to (a) the greater of $4,000
or 4% of the participant's compensation (limited by the Internal Revenue Code to
$9,500 in 1996) for participants earning in excess of $70,000 or (b) $9,500 for
participants earning less than $70,000.
-6-
<PAGE>
Investment programs
- -------------------
Participants may elect to have their contributions invested in any combination
of the funds shown on the accompanying statements of changes in net assets
available for plan benefits with fund information. In 1996, a self-directed fund
option was added to allow participants to invest in various other mutual funds
outside of the Preferred Group of Mutual Funds. Contributions to and withdrawals
from this self-directed fund occur through transfers to/from other elected
funds. State Street Bank serves as custodian for funds invested through this
self-directed fund option.
Interfund transfers
- -------------------
Transfers of assets between investment funds are recorded on a net basis in the
statement of changes in net assets available for plan benefits with fund
information.
Vesting, distribution and plan termination
- ------------------------------------------
Participants are fully vested in their participant contributions. Upon
termination of employment for any reason, including death, retirement or total
and permanent disability, or upon Plan termination, the balance or balances in
participants' accounts are distributable.
Administration
- --------------
The Plan is administered by the Vice President - Human Services Division of
Caterpillar Inc., and the Benefits Funds Committee of Caterpillar Inc. is
responsible for financial aspects of the Plan. Caterpillar Inc. and the Benefit
Funds Committee have entered into a trust agreement with The Northern Trust
Company to receive contributions, administer the assets of the Plan and
distribute withdrawals pursuant to the Plan.
Federal income tax status
- -------------------------
The Internal Revenue Service has determined and informed the Company by letter
in February 1988, that the Plan and related trust are designed in accordance
with applicable sections of the Internal Revenue Code (IRC). The Plan has been
amended subsequent to the amendments covered by the determination letter;
however, the Plan administrator and the Plan's legal counsel believe that the
Plan is designed and is currently being operated in compliance with the
applicable requirements of the IRC.
NOTE 2 - SUMMARY OF SIGNIFICANT
- -------------------------------
ACCOUNTING POLICIES:
-------------------
Basis of accounting
- -------------------
The Plan's accounts are maintained on the accrual basis of accounting.
Investments
- -----------
The fair value of the Plan's investment in the 401(k) Master Trust (Note 4) is
based upon the beginning of the year value of the Plan's investment plus actual
contributions, transfers and allocated investment income less actual
withdrawals. Shares of registered investment companies included in the
self-directed fund option are valued at quoted market prices which represent the
net asset value of shares held by the Plan at year end. Income from investments
is recorded as earned.
Administrative expenses
- -----------------------
Administrative costs, including trustee fees and certain investment costs, are
paid by the Company.
-7-
<PAGE>
Use of estimates in the preparation
of financial statements
- -----------------------
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, income and benefit payments.
Actual results could differ from those estimates. The Company believes the
techniques and assumptions used in establishing these amounts are appropriate.
NOTE 3 - UNIT VALUES:
- --------------------
The Plan assigns units to participants directing investments to any of the
Preferred Group of Mutual Funds and the Caterpillar Common Stock Fund. The unit
values assigned by the Plan reflect the current values of the individual funds.
Total units held (in thousands) by the Plan and their respective unit values at
each month end as follows:
<TABLE>
<CAPTION>
Caterpillar Common Stock Fund
------------------------------
Units Unit value Units Unit value
----- ---------- ----- ----------
<S> <C> <C> <C> <C> <C>
January 845 27.49 July 982 38.94
February 794 27.72 August 1,044 40.22
March 804 28.36 September 1,073 37.49
April 794 31.32 October 1,080 35.73
May 824 34.20 November 1,149 33.60
June 905 37.40 December 1,160 34.00
</TABLE>
-8-
<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 Small Cap Fund. CIML also managed the Preferred
Short-Term Government Fund through October 1997. All other funds are managed by
unrelated investment managers. Caterpillar Securities, Inc., a wholly-owned
subsidiary of CIML, distributes the shares of the mutual funds to the Master
Trust.
The percentage of the Plan's participation in the Master Trust was determined
based on the December 31, 1997 and 1996 market values of net assets, as
accumulated by the Trustee for the investment funds of each plan. At December
31, 1997 and 1996, the Plan's pro rata interest in the quoted market values of
net assets of each of the funds of the Master Trust was as follows:
1997 1996
---- ----
Caterpillar Inc. Common Stock Fund 11.64% 11.31%
Preferred Stable Principal Fund 27.08% 26.38%
Preferred Short-Term Government Fund 20.63% 20.28%
Preferred Money Market Fund 12.44% 12.31%
Preferred Value Fund 16.98% 17.17%
Preferred International Fund 14.03% 13.51%
Preferred Growth Fund 17.21% 17.07%
Preferred Asset Allocation Fund 13.38% 12.21%
Preferred Fixed Income Fund 12.43% 11.38%
Preferred Small Cap Fund 11.96% 13.71%
Loan Fund 24.94% 21.98%
Investment valuation
- --------------------
The Master Trust's investments are stated at fair value. Common stock and cash
and cash equivalents are valued at quoted market prices. Shares of registered
investment companies are valued at quoted market prices which represent the net
asset value of shares held by the Master Trust at year end. Participant loans
are valued at cost which approximates fair value.
The net investment income or loss of the Master Trust is reflected in the
financial statements of the Plan based on the actual earnings of each investment
fund as allocated to the Plan based on average investment balances throughout
the year. Refer to pages 10 through 13 for analyses of the net assets and
changes in net assets of the investments of the Master Trust as of December 31,
1997 and 1996.
-9-
<PAGE>
CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN
--------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS
---------------------------------------------
DECEMBER 31, 1997
-----------------
(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 $ 14,088 $ $ $ $ $ $
Common stock 321,300
Registered investment companies 95,451 14,293 61,952 239,793 82,881 257,136
Participant loans
-------- ------- ------- ------- -------- ------- --------
Total investments 335,388 95,451 14,293 61,952 239,793 257,136
Dividend and interest receivable 70
Transfers receivable from EIP 1 2,417 6
Contributions receivable 980 453 80 330 1,271 669 1,637
Other receivable/(payable), net 196 89 14 621 291 (790) 635
-------- ------- ------- ------- -------- ------- --------
Net assets $339,051 $95,993 $14,387 $62,909 $241,355 $82,760 $259,408
======== ======= ======= ======= ======== ======= ========
</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 $ $ $ $ $ 14,088
Common stock 321,300
Registered investment companies 58,253 23,844 42,626 876,229
Participant loans 23,247 23,247
-------- -------- -------- ------- ----------
Total investments 58,253 23,844 42,626 23,247 1,234,864
Dividend and interest receivable 70
Transfers receivable from EIP 1 2,423
Contributions receivable 405 138 364 6,327
Other receivable/(payable), net 50 (173) 71 (836) 168
-------- -------- -------- -------- ----------
Net assets $ 58,708 $ 23,809 $ 43,061 $ 22,411 $1,243,852
======== ======== ======== ======== ==========
</TABLE>
-10-
<PAGE>
<TABLE>
<CAPTION>
CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN
--------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS
---------------------------------------------
DECEMBER 31, 1996
-----------------
(Dollars in 000's)
Preferred Group of Mutual Funds
---------------------------------------------------------------------------------
Caterpillar
Common Stable
Stock Principal Short-term Money Asset Fixed
Fund Fund Government Market Value International Growth Allocation Income
------ --------- ---------- ------ ----- ------------- ------ ---------- ------
<S> <C> <C> <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 47,001 22,152
Participant loans
-------- -------- ------- ------- ------- ------ ------- -------- -------
Total investments 181,935 103,382 14,528 85,349 182,982 85,207 194,217 47,001 22,152
Dividend and interest receivable 56
Transfers receivable from EIP 1 4,863 35
Contributions receivable 536 542 87 318 983 649 1,421 354 153
Other receivable/(payable), net 361 519 4 (254) 97 (37) (18) 273 (25)
-------- -------- ------- ------- -------- ------- --------- -------- -------
Net assets $187,751 $104,443 $14,619 $85,448 $184,062 $85,819 $195,620 $47,628 $22,280
======== ======== ======= ======= ======== ======= ========= ======== =======
</TABLE>
<TABLE>
<CAPTION>
Small Loan
Cap Fund Total
--- ---- -----
<S> <C> <C> <C>
Investments, at fair value:
Cash and cash equivalents $ $ $ 11,311
Common stock 170,624
Registered investment companies 18,215 753,033
Participant loans 20,821 20,821
-------- -------- ---------
Total investments 18,215 20,821 955,789
Dividend and interest receivable 56
Transfers receivable from EIP 1 4,898
Contributions receivable 157 5,200
Other receivable/(payable), net (762) 158
-------- -------- ---------
Net assets $ 18,372 $ 20,059 $ 966,101
======== ======== =========
</TABLE>
-11-
<PAGE>
CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN
--------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS
--------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------
(Dollars in 000's)
<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>
Investment income:-
Interest $ 813 $ $ $ $ $ $ $
Dividends 4,760
Net appreciation in fair value of:
Common stock 45,824
Registered investment companies 6,253 866 4,021 53,130 6,865 62,329 10,267
-------- -------- ------- -------- -------- -------- -------- -------
Net investment income 51,397 6,253 866 4,021 53,130 6,865 62,329 10,267
-------- -------- ------- -------- -------- -------- -------- -------
Contributions to all plans 9,320 5,347 884 4,431 14,573 8,309 18,272 4,716
-------- -------- ------- -------- -------- -------- -------- -------
Withdrawals from all plans (12,273) (5,285) (505) (10,252) (6,680) (2,485) (6,999) (2,125)
-------- -------- ------- -------- -------- -------- -------- -------
Transfers from EIP 1 53,246 589
-------- -------- ------- -------- -------- -------- -------- -------
Interfund transfers, net 49,610 (14,765) (1,477) (21,328) (3,730) (15,748) (9,814) (1,778)
-------- -------- ------- -------- -------- -------- -------- -------
Increase (decrease) in net assets 151,300 (8,450) (232) (22,539) 57,293 (3,059) 63,788 11,080
Net assets:
Beginning of year 187,751 104,443 14,619 85,448 184,062 85,819 195,620 47,628
-------- -------- ------- -------- -------- -------- -------- -------
End of year $339,051 $ 95,993 $14,387 $ 62,909 $241,355 $ 82,760 $259,408 $58,708
======== ======== ======= ======== ======== ======== ======== =======
Preferred Group of
Mutual Funds
-------------------
Fixed Small Loan
Income Cap Fund Total
------- ------- ------- ----------
Investment income:-
Interest $ $ $ 1,887 $ 2,700
Dividends 4,760
Net appreciation in fair value of:
Common stock 45,824
Registered investment companies 1,757 6,494 151,982
------- ------- ------- ----------
Net investment income 1,757 6,494 1,887 205,266
------- ------- ------- ----------
Contributions to all plans 1,726 3,157 70,735
------- ------- ------- ----------
Withdrawals from all plans (1,019) (523) (503) (48,649)
------- ------- ------- ----------
Transfers from EIP 1 53,835
------- ------- ------- ----------
Interfund transfers, net (935) 15,561 968 (3,436)
------- ------- ------- ----------
Increase (decrease) in net assets 1,529 24,689 2,352 277,751
------- ------- ------- ----------
Net assets:
Beginning of year 22,280 18,372 20,059 966,101
------- ------- ------- ----------
End of year $23,809 $43,061 $22,411 $1,243,852
======= ======= ======= ==========
</TABLE>
-12-
<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
Fund Fund Government Market Value International Growth Allocation
---------- --------- ---------- ------ ------- ------------- -------- ----------
<S> <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
-------- -------- ------- -------- -------- -------- -------- -------
Net investment income 45,523 5,258 615 3,612 35,676 12,181 31,039 5,796
-------- -------- ------- -------- -------- -------- -------- -------
Contributions to all plans 5,135 6,096 978 3,781 10,442 7,601 16,182 3,858
-------- -------- ------- -------- -------- -------- -------- -------
Withdrawals from all plans (7,437) (7,519) (1,093) (12,848) (5,166) (2,088) (5,126) (1,723)
-------- -------- ------- -------- -------- -------- -------- -------
Transfers from EIP 1 50,104 584
-------- -------- ------- -------- -------- -------- -------- -------
Interfund transfers, net (64,270) 3,193 1,299 27,272 9,514 1,910 (9,633) 4,429
-------- -------- ------- -------- -------- -------- -------- -------
Increase (decrease) in net assets 29,055 7,028 1,799 22,401 50,466 19,604 32,462 12,360
Net assets:
Beginning of year 158,696 97,415 12,820 63,047 133,596 66,215 163,158 35,268
-------- -------- ------- -------- -------- -------- -------- -------
End of year $187,751 $104,443 $14,619 $ 85,448 $184,062 $ 85,819 $195,620 $47,628
======== ======== ======= ======== ======== ======== ======== =======
Preferred Group of
Mutual Funds
-------------------
Fixed Small Loan
Income Cap Fund Total
------- ------- ------- ----------
Investment income:
Interest $ $ $ 1,521 $ 1,927
Dividends 3,598
Net appreciation in fair value of:
Common stock 41,519
Registered investment companies 520 2,219 96,916
------- ------- ------- ----------
Net investment income 520 2,219 1,521 143,960
------- ------- ------- ----------
Contributions to all plans 1,869 1,314 57,256
------- ------- ------- ----------
Withdrawals from all plans (1,489) (307) (422) (45,218)
------- ------- ------- ----------
Transfers from EIP 1 50,688
------- ------- ------- ----------
Interfund transfers, net (1,771) 15,146 3,239 (9,672)
------- ------- ------- ----------
Increase (decrease) in net assets (871) 18,372 4,338 197,014
Net assets:
Beginning of year 23,151 15,721 769,087
------- ------- ------- ----------
End of year $22,280 $18,372 $20,059 $ 966,101
======= ======= ======= ==========
</TABLE>
-13-
<PAGE>
ADDITIONAL INFORMATION
-----------------------
<PAGE>
SCHEDULE I
----------
CATERPILLAR INC.
TAX DEFERRED SAVINGS PLAN
-------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
DECEMBER 31, 1997
-----------------
<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>
Caterpillar Inc. 401(k) Master Trust $128,334,962 $194,494,000
============ ============
American Century Equity Growth; 937.05 units $ $ 17,841
20th Century Emerging Markets; 1,123.60 units 4,596
Gas Index; 16.68 units 304
Baron Small Cap; 993.05 units 10,238
Asset Fund; 1,118.67 units 54,267
Brinson U.S. Equity; 114.81 units 2,018
Cohen & Steers Realty Shares Inc.; 220.86 units 11,083
Dreyfus Small Company Value Fund; 1,009.94 units 21,280
Aggressive Value; 245.36 units 5,766
Fidelity Dividend Growth; 131.64 units 3,063
Value Fund; 133.93 units 7,238
Worldwide Fund; 240.77 units 3,840
Select Utilities Growth; 60.37 units 2,951
Select Retailing; 41.80 units 1,883
Select Energy Service; 30.81 units 938
Select American Gold; 61.96 units 925
Select Electronics; 36.10 units 1,112
Guinness Flight China Hong Kong Fund; 224.72 units 2,901
Flight Asia Small Cap; 413.33 units 4,022
Flight Asia Blue Chip; 20.38 units 165
Harris Associates Oakmark Fund; 306.24 units 12,375
Hotchkis & Wiley International Fund; 265.30 units 6,014
Interactive Tech Value Fund; 97.14 units 2,531
Medical Specialists; 300 units 3,036
Technology Leaders; 300 units 3,015
Invesco Strategic Health Sciences Fund; 80.36 units 3,951
Strategic Financial Services; 165.92 units 4,664
Janus High Yield Bond; .29 units 3
Overseas Fund; 1.531.99 units 26,641
Mercury Fund; 537.87 units 8,875
Worldwide Fund; 1,977.59 units 74,713
Growth & Income; 97.74 units 2,263
Olympus Fund; 132.16 units 2,323
Lexington Corporate Leaders Trust B; 124.46 units 1,852
Troika Russia Income; 118.25 units 2,069
Midas Midas Fund; 1,356.77 units 2,863
Montgomery Asset Allocation Fund; 346.41 units 6,561
Emerging Markets Fund; 68.22 units 882
Growth Fund; 712.75 units 15,602
Mutual Series Beacon Fund; 1,453.56 units 20,524
Neuberger and Berman International Fund; 777.00 units 11,243
Genesis Trust Fund; 861.79 units 19,149
Partners Fund; 1,418.88 units 24,774
Oakmark Oakmark Select; 3,266.96 units 57,237
PBHG Growth Fund; 564.87 units 14,342
Technology and Communication Fund; 2615.34 units 45,193
</TABLE>
(Continued)
-14-
<PAGE>
SCHEDULE I
-----------
CATERPILLAR INC.
TAX DEFERRED SAVINGS PLAN
-------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
DECEMBER 31, 1997
-----------------
<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>
Payden & Rygel Growth & Income Class A; 320.83 units $ $ 4,254
Roberston Stephens Global MAT RES Fund; 71.92 units 839
Value Plus and Growth Fund; 270.48 units 6,270
SSGA Small Cap Equity; 46.13 units 970
T Rowe Price European Stock Fund; 1,042.87 units 20,190
Equity Income; 983.16 units 25,631
Financial Services; 42.87 units 667
Health Sciences; 841.64 units 11,497
SSGA Money Market Fund; 179,091.20 units 179,091
State Street Research Aurora Class A; 94.76 units 1,858
Global Class A; 455.71 units 9,415
Stein Roe Growth Fund; 86.67 units 2,990
Young Investor Fund; 552.50 units 12,868
Strong Corporate Bond Fund; 310.52 units 3,478
Growth Fund; 1,779.53 units 32,583
Growth & Income; 159.11 units 2,595
Common stock; 113.84 units 2,393
United Services U.S. World Gold Fund; 549.05 units 6,122
Vanguard Index Trust - Growth Portfolio; 712.73 units 16,058
Vanguard/Wellesey Income Fund; 551.87 units 12,064
U.S. Growth Portfolio; 266.49 units 7,648
International Growth Portfolio; 641.71 units 10,518
Vanguard/Windsor; 2,238.90 units 64,077
Fixed Income Securities Fund - GNMA Portfolio; 3,674.39 units 38,324
Index Trust S&P500; 665.02 units 59,898
Index Trust - Total Stock Market Portfolio; 473.12 units 10,711
Short-Term Treasury; 983.05 units 10,037
Warburg Pincus Small Company Value; 973.96 units 15,973
Health Sciences; 7.03 units 84
-------------
$ 1,098,229
=============
</TABLE>
-15-
<PAGE>
SCHEDULE II
- -----------
CATERPILLAR INC.
----------------
TAX DEFERRED SAVINGS PLAN
-------------------------
ITEM 27d - SCHEDULE OF REPORTABLE 5% TRANSACTIONS
-------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------
<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)
- -------------- --------------------------- -------- ------- ------- ----------- -------- ----------- ---------
<C> <S> <C> <C> <C> <C> <C> <C> <C>
Baron Asset Fund:
Series of 4 purchases $35,881 $ $ $ $35,881 $35,881 $
Sale 30 30
Dreyfus Midcap Value Fund:
Purchase 19,400 19,400 19,400
Sale 23,432 23,432
Janus Olympus Fund:
Series of 4 purchases 15,095 15,095 15,095
Sale 35,091 35,091
Oakmark Select Fund:
Series of 4 purchases 55,259 55,259 55,259
PAPP American Abroad Fund:
Purchase 29,918 29,918 29,918
Sale 28,414 28,414
</TABLE>
-16-
<PAGE>
<TABLE>
<CAPTION>
CATERPILLAR INC.
----------------
TAX DEFERRED SAVINGS PLAN
-------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
----------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i)
Current
Expense value
incurred of asset on
Identity of Purchase Selling Lease with Cost transaction Net gain
party involved Description of Assets Price Price rental transaction of asset date or (loss)
- -------------- --------------------- -------- -------- -------- ----------- -------- ----------- ----------
<C> <S> <C> <C> <C> <C> <C> <C> <C>
PBHG Growth Fund:
Series of 3 purchases $ 4,442 $ $ $ $ 4,442 $ 4,442 $
Series of 8 sales 107,052 107,052
Technology and Communication Fund:
Series of 16 purchases 111,976 111,976 111,976
Series of 3 sales 69,928 69,928
SSGA Money Market Fund:
Series of 312 purchases 794,253 794,253 794,253
Series of 128 sales 789,892 789,892
Vanguard Fixed Income Securities Fund - GNMA
Portfolio:
Series of 9 purchases 81,918 81,918 81,918
Series of 2 sales 23,966 23,966
Index Trust - S&P500 Fund:
Series of 2 purchases 105,758 105,758 105,758
Sale 54,966 54,966
Vanguard/Windsor II Fund:
Series of 5 purchases 118,962 118,962 118,962
Sale 52,140 52,140
</TABLE>
-17-
<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
15, 1998 related to the financial statements of the Tax Deferred Savings Plan,
which is included in this Annual Report on Form 11-K.
/s/ PRICE WATERHOUSE LLP
Peoria, Illinois
May 15, 1998
<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, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 [No Fee Required]
For the transition period from _____ to _____
Commission File Number 1-768
SAVINGS AND INVESTMENT PLAN
(Full title of the Plan)
CATERPILLAR INC.
(Name of issuer of the securities held
pursuant to the Plan)
100 NE ADAMS STREET, PEORIA, ILLINOIS 61629
(Address of principal executive offices)
<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
and Additional Information
December 31, 1997 and 1996
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
May 15, 1998
To the Participants and
Plan Administrator of the
Solar Turbines Incorporated
Savings and Investment Plan
In our opinion, the accompanying statements of net assets available for plan
benefits of the Solar Turbines Incorporated Savings and Investment Plan and the
related statements of changes in net assets available for plan benefits present
fairly, in all material respects, the net assets available for plan benefits at
December 31, 1997 and 1996, and the changes in net assets available for plan
benefits for the years then ended, in conformity with generally accepted
accounting principles. These financial statements are the responsibility of the
plan's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for the opinion expressed above.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information schedules of
assets held for investment purposes and of reportable (5%) transactions are
presented for purposes of additional analysis and are not a required part of the
basic financial statements but are additional information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974 (ERISA). These additional
information schedules are the responsibility of the Plan's management. The Fund
Information in the statement of net assets available for plan benefits and the
statement of changes in net assets available for plan benefits is presented for
purposes of additional analysis rather than to present the net assets available
for plan benefits and changes in net assets available for plan benefits of each
fund. The additional information schedules and the Fund Information have been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
The schedules of assets held for investment purposes and of reportable (5%)
transactions that accompany the Plan's financial statements do not disclose the
historical cost of certain plan assets and certain related sales transactions,
held by a Plan custodian. Disclosure of this information is required by ERISA.
/s/ Price Waterhouse LLP
<PAGE>
Exhibit A
SOLAR TURBINES INCORPORATED
---------------------------
SAVINGS AND INVESTMENT PLAN
---------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
-------------------------------------------------------------------------
DECEMBER 31, 1997
-----------------
(Dollars in 000's)
<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>
Investments, at fair value (Notes 2
and 4):
Registered investment companies $ $ $ $ $ $ $ $ $ $
Investments in Master Trust
Net Assets 7,378 2,669 399 1,339 3,300 936 4,336 468 159 253
------ ------ ---- ------ ------ ---- ------ ---- ---- ----
Total net assets $7,378 $2,669 399 $1,339 $3,300 $936 $4,336 $468 $159 $253
====== ====== ==== ====== ====== ==== ====== ==== ==== ====
</TABLE>
<TABLE>
<CAPTION>
Fund Information
------------------
Self-
Loan Directed
Fund Fund Total
---- -------- -----
<S> <C> <C> <C>
Investments, at fair value (Notes 2
and 4):
Registered investment companies $ $84 $ 84
Investments in Master Trust
Net Assets 1,609 22,846
------ --- -------
Total net assets $1,609 $84 $22,930
====== === =======
</TABLE>
(See notes to financial statements)
-2-
<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
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>
Investments, at fair value (Notes 2
and 4):
Registered investment companies $ $ $ $ $ $ $ $ $ $
Investments in Master Trust
Net Assets 3,996 2,938 443 1,717 2,514 896 3,201 420 217 130
------ ------ ---- ------ ------ ---- ------ ---- ---- ----
Total net assets $3,996 $2,938 $443 $1,717 $2,514 $896 $3,201 $420 $217 $130
====== ====== ==== ====== ====== ==== ====== ==== ==== ====
</TABLE>
<TABLE>
<CAPTION>
Fund Information
------------------
Self-
Loan Directed
Fund Fund Total
---- -------- -----
<S> <C> <C> <C>
Investments, at fair value (Notes 2
and 4):
Registered investment companies $ $31 $ 31
Investments in Master Trust
Net Assets 1,143 17,615
------ --- -------
Total net assets $1,143 $31 $17,646
====== === =======
</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, 1997
-----------------
(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 $ 938 $ 297 $ 44 $ 247 $ 425 $ 187 $ 587 $ 90 $ 32 $ 51
------ ----- ----- ------ ------ ----- ------ ----- ----- ----
Investment income:
Net appreciation in fair value of
registered investment companies
Plan interest in net investment gain
of Master Trust (Note 4) 1,105 177 25 80 734 66 1,014 91 16 35
------ ----- ----- ------ ------ ----- ------ ----- ----- ----
Withdrawals (158) (128) (49) (58) (187) (23) (227) (50) (38) (1)
Transfers (to)/from other plans, net (131) 16 (4) (52) 94 (1) (19) (4) 1
Interfund transfers, net 1,628 (631) (60) (595) (280) (189) (220) (79) (68) 37
------ ----- ----- ------ ------ ----- ------ ----- ----- ----
Withdrawals and transfers,
net 1,339 (743) (113) (705) (373) (213) (466) (133) (106) 37
----- ----- ----- ------ ------ ----- ------ ----- ----- ----
Increase (decrease) in net assets 3,382 (269) (44) (378) 786 40 1,135 48 (58) 123
Net assets:
Beginning of year 3,996 2,938 443 1,717 2,514 896 3,201 420 217 130
----- ----- ---- ------ ------ ----- ------ ----- ----- ---
End of year $7,378 $2,669 $399 $1,339 $3,300 $ 936 $4,336 $ 468 $ 159 $253
====== ====== ==== ====== ====== ===== ====== ===== ===== ====
</TABLE>
<TABLE>
<CAPTION>
Fund Information
------------------
Self-
Loan Directed
Fund Fund Total
---- -------- -----
<S> <C> <C> <C>
Participant contributions $ $ $ 2,898
------ --- -------
Plan interest in net investment gain
of Master Trust (Note 4) 117 2 3,462
------ --- -------
Withdrawals (36) (955)
Transfers (to)/from other plans, net (13) (8) (121)
Interfund transfers, net 398 59
------ --- -------
Withdrawals and transfers,
net 349 51 (1,076)
------ --- -------
Increase (decrease) in net assets 466 53 5,284
Net assets:
Beginning of year 1,143 31 17,646
------ --- -------
End of year $1,609 $84 $22,930
====== === =======
</TABLE>
(See notes to financial statements)
-4-
<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- Asset
Fund Fund Government Market Value national Growth Allocation
---- ---- ---------- ------ ----- -------- ------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Participant contributions $ 490 $ 376 $ 54 $ 238 $ 292 $ 174 $ 493 $ 74
------ ------ ---- ------ ------ ----- ------ -----
Plan interest in net investment gain
of Master Trust (Note 4) 964 117 20 74 453 122 512 60
------ ------ ---- ------ ------ ----- ------ -----
Withdrawals (427) (306) (36) (36) (116) (25) (176) (100)
Transfers (to)/from other plans, net 130 (1) (6) (24) (9) (25) (13)
Interfund transfers, net (147) (274) (2) 171 281 (82) (245) 13
------ ------ ---- ------ ------ ----- ------ -----
Withdrawals and transfers,
net (444) (580) (39) 129 141 (116) (446) (100)
------ ------ ---- ------ ------ ----- ------ -----
Increase (decrease) in net assets 1,010 (87) 35 441 886 180 559 34
Net assets:
Beginning of year 2,986 3,025 408 1,276 1,628 716 2,642 386
------ ------ ---- ------ ------ ----- ------ -----
End of year $3,996 $2,938 $443 $1,717 $2,514 $ 896 $3,201 $ 420
====== ====== ==== ====== ====== ===== ====== =====
------------------------------------
---------------
Self-
Fixed Small Loan Directed
Income Cap Fund Fund Total
------ ----- ---- -------- -----
Participant contributions $ 42 $ 16 $ $ $ 2,249
---- ---- ------ --- -------
Plan interest in net investment gain
of Master Trust (Note 4) 7 10 81 2,420
---- ---- ------ --- -------
Withdrawals (7) (38) (1,267)
Transfers (to)/from other plans, net (11) (30) 11
Interfund transfers, net (30) 104 180 31
---- ---- ------ --- -------
Withdrawals and transfers,
net (48) 104 112 31 (1,256)
---- ---- ------ --- -------
Increase (decrease) in net assets 1 130 193 31 3,413
Net assets:
Beginning of year 216 950 14,233
---- ---- ------ --- -------
End of year $217 $130 $1,143 $31 $17,646
==== ==== ====== === =======
</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), a 100%-owned subsidairy of Caterpillar Inc., to
enable eligible employees of the Company and its subsidiaries (the employers) to
accumulate funds.
Participation
- -------------
Hourly employees of the Company who meet certain age, service and citizenship or
residency requirements are eligible to participate in the Plan. Participation
commences upon an eligible employee's filing of an application with the Company.
Participating eligible employees (the participants) may elect to defer a portion
of their compensation until retirement.
Participant accounts
- --------------------
Accounts are maintained separately for each participant. The participant's
separate account is credited with the Participant's contribution as defined
below and an allocation of Plan earnings. Allocations of earnings are based on
participant account balances, as defined. The benefit to which a participant is
entitled is the benefit that can be provided from the participant's account.
Loan provisions
- ---------------
The Plan provides for participant loans against eligible participants' separate
account balances. Eligible employees obtain participant loans by filing a loan
application with the Company and receiving approval thereof. Loan amounts are
generally limited to the lesser of $50,000 or 50% of the individual
participant's account balance, within certain regulatory restrictions. Loan
repayment terms may range from 6 to 117 months depending on the type of loan and
bear interest at the prime interest rate plus 1% rounded to the nearest whole
per cent. Repayments, including interest, are made through after-tax payroll
deductions and are credited to the individual participant's account balance.
Loan transactions are treated as a transfer to (from) the investment fund (from)
to the Loan Fund.
Contributions
- -------------
Participant contributions are made through a pretax compensation deferral as
elected by the participants and are contributed to the Plan by the employer.
During 1997, the compensation deferral was limited to (a) the greater of $5,000
or 4% of the participant's compensation (limited by the Internal Revenue Code to
$9,500 in 1997) for participants earning in excess of $75,000 or (b) $9,500 for
participants earning less than $75,000.
During 1996, the compensation deferral was limited to (a) the greater of $4,000
or 4% of the participant's compensation (limited by the Internal Revenue Code to
$9,500 in 1996) for participants earning in excess of $70,000 or (b) $9,500 for
participants earning less than $70,000.
-6-
<PAGE>
Investment programs
- -------------------
Participants may elect to have their contributions invested in any combination
of the funds shown on the accompanying statements of changes in net assets
available for plan benefits with fund information. In 1996, a self-directed
fund option was added to allow participants to invest in various other mutual
funds outside of the Preferred Group of Mutual Funds. Contributions to and
withdrawals from this self-directed fund occur through transfers to/from other
elected funds. State Street Bank serves as custodian for funds invested through
this self-directed fund option.
Interfund transfers
- -------------------
Transfers of assets between investment funds are recorded on a net basis in the
statement of changes in net assets available for plan benefits with fund
information.
Vesting, distribution and plan termination
- ------------------------------------------
Participants are fully vested in their participant contributions. Upon
termination of employment for any reason, including death, retirement or total
and permanent disability, or upon Plan termination, the balance or balances in
participants' accounts are distributable.
Administration
- --------------
The Plan is administered by the Vice President - Human Services Division of
Caterpillar Inc., and the Benefits Funds Committee of Caterpillar Inc. is
responsible for financial aspects of the Plan. Caterpillar Inc. and the Benefit
Funds Committee have entered into a trust agreement with The Northern Trust
Company to receive contributions, administer the assets of the Plan and
distribute withdrawals pursuant to the Plan.
Federal income tax status
- -------------------------
The Internal Revenue Service has determined and informed the Company by letter
dated May 30, 1986, that the Plan and related trust are designed in accordance
with applicable sections of the Internal Revenue Code (IRC). The Plan has been
amended subsequent to the amendments covered by the determination letter;
however, the Plan administrator and the Plan's legal counsel believe that the
Plan is designed and is currently being operated in compliance with the
applicable requirements of the IRC.
NOTE 2 - SUMMARY OF SIGNIFICANT
- -------------------------------
ACCOUNTING POLICIES:
-------------------
Basis of accounting
- -------------------
The Plan's accounts are maintained on the accrual basis of accounting.
Investments
- -----------
The fair value of the Plan's investment in the 401(k) Master Trust (Note 4) is
based upon the beginning of the year value of the Plan's investment plus actual
contributions, transfers and allocated investment income less actual
withdrawals. Shares of registered investment companies included in the self-
directed fund option are valued at quoted market prices which represent the net
asset value of shares held by the Plan at year end. Income from investments is
recorded as earned.
Administrative expenses
- -----------------------
Administrative costs, including trustee fees and certain investment costs, are
paid by Caterpillar Inc.
-7-
<PAGE>
Use of estimates in the preparation
- -----------------------------------
of financial statements
- -----------------------
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, income and benefit payments.
Actual results could differ from those estimates. The Company believes the
techniques and assumptions used in establishing these amounts are appropriate.
NOTE 3 - UNIT VALUES:
- --------------------
The Plan assigns units to participants directing investments to any of the
Preferred Group of Mutual Funds and the Caterpillar Common Stock Fund. The unit
values assigned by the Plan reflect the current values of the individual funds.
Total units held (in thousands) by the Plan and their respective unit values at
each month end as follows:
<TABLE>
<CAPTION>
Caterpillar Common Stock Fund
-----------------------------
Units Unit value Units Unit value
----- ----------- ----- ----------
<S> <C> <C> <C> <C> <C>
January 174 27.49 July 185 38.94
February 155 27.72 August 201 40.22
March 152 28.36 September 215 37.49
April 146 31.32 October 220 35.73
May 161 34.20 November 219 33.60
June 171 37.40 December 217 34.00
</TABLE>
-8-
<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 Caterpillar Inc. The Preferred Group
of Mutual Funds is comprised of the following:
Preferred Stable Principal Fund
Preferred Short-term Government Fund Preferred Value Fund
Preferred Growth Fund Preferred Fixed Income Fund
Preferred Money Market Fund Preferred International Fund
Preferred Asset Allocation Fund Preferred Small Cap Fund
CIML manages the Preferred Small Cap Fund. CIML also managed the Preferred
Short-term Government Fund through October 1997. All other funds are managed
by unrelated investment managers. Caterpillar Securities, Inc., a wholly-owned
subsidiary of CIML, distributes the shares of the mutual funds to the Master
Trust.
The percentage of the Plan's participation in the Master Trust was determined
based on the December 31, 1997 and 1996 market values of net assets, as
accumulated by the Trustee for the investment funds of each plan. At December
31, 1997 and 1996, the Plan's pro rata interest in the quoted market values of
net assets of each of the funds of the Master Trust was as follows:
<TABLE>
<CAPTION>
1997 1996
----- -----
<S> <C> <C>
Caterpillar Inc. Common Stock Fund 2.18% 2.13%
Preferred Stable Principal Fund 2.78% 2.81%
Preferred Short-term Government Fund 2.78% 3.03%
Preferred Money Market Fund 2.13% 2.01%
Preferred Value Fund 1.37% 1.37%
Preferred International Fund 1.13% 1.04%
Preferred Growth Fund 1.67% 1.64%
Preferred Asset Allocation Fund .81% .88%
Preferred Fixed Income Fund .68% .97%
Preferred Small Cap Fund .59% .71%
Loan Fund .77% 5.70%
</TABLE>
Investment valuation
- --------------------
The Master Trust's investments are stated at fair value. Common stock and cash
and cash equivalents are valued at quoted market prices. Shares of registered
investment companies are valued at quoted market prices which represent the net
asset value of shares held by the Master Trust at year end. Participant loans
are valued at cost which approximates fair value.
The net investment income or loss of the Master Trust is reflected in the
financial statements of the Plan based on the actual earnings of each investment
fund as allocated to the Plan based on average investment balances throughout
the year. Refer to pages 10 through 13 for analyses of the net assets and
changes in net assets of the investments of the Master Trust as of December 31,
1997 and 1996.
-9-
<PAGE>
SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN
---------------------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS
---------------------------------------------
DECEMBER 31, 1997
-----------------
(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 $ 14,088 $ $ $ $ $ $
Common stock 321,300
Registered investment companies 95,451 14,293 61,952 239,793 82,881 257,136
Participant loans
-------- ------- ------- ------- -------- ------- --------
Total investments 335,388 95,451 14,293 61,952 239,793 82,881 257,136
Dividend and interest receivable 70
Transfers receivable from EIP 1 2,417 6
Contributions receivable 980 453 80 330 1,271 669 1,637
Other receivable/(payable), net 196 89 14 621 291 (790) 635
-------- ------- ------- ------- -------- ------- --------
Net assets $339,051 $95,993 $14,387 $62,909 $241,355 $82,760 $259,408
======== ======= ======= ======= ======== ======= ========
</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 $ $ $ $ $ 14,088
Common stock 321,300
Registered investment companies 58,253 23,844 42,626 876,229
Participant loans 23,247 23,247
------- ------- ------- ------- ----------
Total investments 58,253 23,844 42,626 23,247 1,234,864
Dividend and interest receivable 70
Transfers receivable from EIP 1 2,423
Contributions receivable 405 138 364 6,327
Other receivable/(payable), net 50 (173) 71 (836) 168
------- ------- ------- ------- ----------
Net assets $58,708 $23,809 $43,061 $22,411 $1,243,852
======= ======= ======= ======= ==========
</TABLE>
-10-
<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
---- ---- ---------- ------ ----- -------------
<S> <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
Participant loans
-------- -------- ------- ------- -------- -------
Total investments 181,935 103,382 14,528 85,349 182,982 85,207
Dividend and interest receivable 56
Transfers receivable from EIP 1 4,863 35
Contributions receivable 536 542 87 318 983 649
Other receivable/(payable), net 361 519 4 (254) 97 (37)
-------- -------- ------- ------- -------- -------
Net assets $187,751 $104,443 $14,619 $85,448 $184,062 $85,819
======== ======== ======= ======= ======== =======
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
---------------------------------------
Asset Fixed Small Loan
Growth Allocation Income Cap Fund Total
------ ---------- ------ ----- ---- -----
<S> <C> <C> <C> <C> <C> <C>
Investments, at fair value:
Cash and cash equivalents $ $ $ $ $ $ 11,311
Common stock 170,624
Registered investment companies 194,217 47,001 22,152 18,215 753,033
Participant loans 20,821 20,821
-------- ------- ------- ------- ------- --------
Total investments 194,217 47,001 22,152 18,215 20,821 955,789
Dividend and interest receivable 56
Transfers receivable from EIP 1 4,898
Contributions receivable 1,421 354 153 157 5,200
Other receivable/(payable), net (18) 273 (25) (762) 158
-------- ------- ------- ------- ------- --------
Net assets $195,620 $47,628 $22,280 $18,372 $20,059 $966,101
======== ======= ======= ======= ======= ========
</TABLE>
-11-
<PAGE>
SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN
---------------------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS
--------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
Caterpillar --------------------------------------------------------------
Common Stable
Stock Principal Short-term Money
Fund Fund Government Market Value International
---- ---- ---------- ------ ----- -------------
Investment income:-
<S> <C> <C> <C> <C> <C> <C>
Interest $ 813 $ $ $ $ $
Dividends 4,760
Net appreciation in fair value of:
Common stock 45,824
Registered investment companies 6,253 866 4,021 53,130 6,865
-------- -------- ------- ------- -------- --------
Net investment income 51,397 6,253 866 4,021 53,130 6,865
-------- -------- ------- ------- -------- --------
Contributions to all plans 9,320 5,347 884 4,431 14,573 8,309
-------- -------- ------- ------- -------- --------
Withdrawals from all plans (12,273) (5,285) (505) (10,252) (6,680) (2,485)
-------- -------- ------- ------- -------- --------
Transfers from EIP 1 53,246 589
-------- -------- ------- ------- -------- --------
Interfund transfers, net 49,610 (14,765) (1,477) (21,328) (3,730) (15,748)
-------- -------- ------- ------- -------- --------
Increase (decrease) in net assets 151,300 (8,450) (232) (22,539) 57,293 (3,059)
Net assets:
Beginning of year 187,751 104,443 14,619 85,448 184,062 85,819
-------- -------- ------- ------- -------- --------
End of year $339,051 $ 95,993 $14,387 $62,909 $241,355 $ 82,760
======== ======== ======= ======= ======== ========
</TABLE>
<TABLE>
<CAPTION>
Preferred Group
of Mutual Funds
-----------------------------
Asset Fixed Small Loan
Growth Allocation Income Cap Fund Total
------ ---------- ------ --- ---- -----
<S> <C> <C> <C> <C> <C> <C>
Investment income:-
Interest $ $ $ $ $ 1,887 $ 2,700
Dividends 4,760
Net appreciation in fair value of:
Common stock 45,824
Registered investment companies 62,329 10,267 1,757 6,494 151,982
-------- ------- ------- ------- ------- ----------
Net investment income 62,329 10,267 1,757 6,494 1,887 205,266
-------- ------- ------- ------- ------- ----------
Contributions to all plans 18,272 4,716 1,726 3,157 70,735
-------- ------- ------- ------- ------- ----------
Withdrawals from all plans (6,999) (2,125) (1,019) (523) (503) (48,649)
-------- ------- ------- ------- ------- ----------
Transfers from EIP 1 53,835
-------- ------- ------- ------- ------- ----------
Interfund transfers, net (9,814) (1,778) (935) 15,561 968 (3,436)
-------- ------- ------- ------- ------- ----------
Increase (decrease) in net assets 63,788 11,080 1,529 24,689 2,352 277,751
Net assets:
Beginning of year 195,620 47,628 22,280 18,372 20,059 966,101
-------- ------- ------- ------- ------- ----------
End of year $259,408 $58,708 $23,809 $43,061 $22,411 $1,243,852
======== ======= ======= ======= ======= ==========
</TABLE>
-12-
<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
----------- --------- ---------- ------ ----- -------------
<S> <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
-------- -------- ------- -------- -------- -------
Net investment income 45,523 5,258 615 3,612 35,676 12,181
-------- -------- ------- -------- -------- -------
Contributions to all plans 5,135 6,096 978 3,781 10,442 7,601
-------- -------- ------- -------- -------- -------
Withdrawals from all plans (7,437) (7,519) (1,093) (12,848) (5,166) (2,088)
-------- -------- ------- -------- -------- -------
Transfers from EIP 1 50,104 584
-------- -------- ------- -------- -------- -------
Interfund transfers, net (64,270) 3,193 1,299 27,272 9,514 1,910
-------- -------- ------- -------- -------- -------
Increase (decrease) in net assets 29,055 7,028 1,799 22,401 50,466 19,604
Net assets:
Beginning of year 158,696 97,415 12,820 63,047 133,596 66,215
-------- -------- ------- -------- -------- -------
End of year $187,751 $104,443 $14,619 $ 85,448 $184,062 $85,819
======== ======== ======= ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
----------------------------------------------
Asset Fixed Small Loan
Growth Allocation Income Cap Fund Total
------ ---------- ------ ----- ---- -----
<S> <C> <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 31,039 5,796 520 2,219 96,918
-------- ------- ------- ------- ------- --------
Net investment income 31,039 5,796 520 2,219 1,521 143,960
-------- ------- ------- ------- ------- --------
Contributions to all plans 16,182 3,858 1,869 1,314 57,256
-------- ------- ------- ------- ------- --------
Withdrawals from all plans (5,126) (1,723) (1,489) (307) (422) (45,218)
-------- ------- ------- ------- ------- --------
Transfers from EIP 1 50,688
-------- ------- ------- ------- ------- --------
Interfund transfers, net (9,633) 4,429 (1,771) 15,146 3,239 (9,672)
-------- ------- ------- ------- ------- --------
Increase (decrease) in net assets 32,462 12,360 (871) 18,372 4,338 197,014
Net assets:
Beginning of year 163,158 35,268 23,151 15,721 769,087
-------- ------- ------- ------- ------- --------
End of year $195,620 $47,628 $22,280 $18,372 $20,059 $966,101
======== ======= ======= ======= ======= ========
</TABLE>
-13-
<PAGE>
SCHEDULE I
SOLAR TURBINES INCORPORATED
SAVINGS AND INVESTMENT PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
<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. 401(k) Master Trust $15,819,100 $22,846,000
=========== ===========
Founders Growth Fund; 249.53 units $ $ 4,312
PBHG Growth Fund; 353.73 units 8,981
SSGA Money Market Fund; 31,143.07 units 31,143
Stein Roe Capital Opportunities Fund; 143.73 units 4,289
Strong Government Securities; 1,396.65 15,014
Vanguard Fixed Income Securities Long-Term Portfolio; 1,611.17 14,919
Warburg Pincus Emerging Growth Fund; 151.08 units 5,706
-----------
$ 84,364
===========
</TABLE>
-14-
<PAGE>
ADDITIONAL INFORMATION
-----------------------
<PAGE>
SCHEDULE II
SOLAR TURBINES INCORPORATED
---------------------------
SAVINGS AND INVESTMENT PLAN
---------------------------
ITEM 27d - SCHEDULE OF REPORTABLE (5%) TRANSACTIONS
---------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------
<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>
SSGA Money Market Fund:
Series of 25 purchases $60,272 $ $ $ $60,272 $60,272 $
Series of 4 sales $30,124 30,124
Strong Government Securities Fund:
Purchase 15,000 15,000 15,000
Vanguard Fixed Income Securities Fund - GNMA
Purchase 15,034 15,034 15,034
</TABLE>
-15-
<PAGE>
EXHIBIT C
---------
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Forms S-8 (No. 2-97450, as amended, and No. 33-37353) of
Caterpillar Inc. of our report dated May 15, 1998 related to the financial
statements of the Savings and Investment Plan, which is included in this Annual
Report on Form 11-K.
/s/ PRICE WATERHOUSE LLP
Peoria, Illinois
May 15, 1998
<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, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 [No Fee Required]
For the transition period from _____ to _____
Commission File Number 1-768
EMPLOYEES' INVESTMENT PLAN
(Full title of the Plan)
CATERPILLAR INC.
(Name of issuer of the securities held
pursuant to the Plan)
100 NE ADAMS STREET, PEORIA, ILLINOIS 61629
(Address of principal executive offices)
<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, 1997 and 1996
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
May 15, 1998
To the Participants, Investment
Plan Committee and Benefits Funds
Committee of the Caterpillar Inc.
Employees' Investment Plan
In our opinion, the accompanying statements of net assets available for plan
benefits of the Caterpillar Inc. Employees' Investment Plan and the related
statements of changes in net assets available for plan benefits present fairly,
in all material respects, the net assets available for plan benefits at November
30, 1997 and 1996, and the changes in net assets available for plan benefits for
the years then ended, in conformity with generally accepted accounting
principles. These financial statements are the responsibility of the plan's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these statements in
accordance with generally accepted auditing standards which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed
above.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information schedules of
assets held for investment purposes and of reportable (5%) transactions are
presented for purposes of additional analysis and are not a required part of the
basic financial statements but are additional information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974 (ERISA). These additional
information schedules are the responsibility of the Plan's management. The Fund
Information in the statement of net assets available for plan benefits and the
statement of changes in net assets available for plan benefits is presented for
purposes of additional analysis rather than to present the net assets available
for plan benefits and changes in net assets available for plan benefits of each
fund. The additional information schedules and the Fund Information have been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
The schedule of assets held for investment purposes that accompanies the Plan's
financial statements does not disclose the historical cost of certain plan
assets held by a Plan custodian. Disclosure of this information is required by
ERISA.
/s/ Price Waterhouse LLP
<PAGE>
Exhibit A
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
-------------------------------------------------------------------------
NOVEMBER 30, 1997
-----------------
(Dollars in 000's)
<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>
Investments, at fair value
(Notes 2 and 4):
Cash and cash equivalents $ 157 $ $ $ $ $ $ $
Caterpillar Inc. common
stock, 18,598,394
shares 891,561
Collective trust fund 13,078
Registered investment
companies
Investment in Master
Trust Net Assets 287,108 66,845 10,942 52,945 194,930 70,390
------- ------- -------- ------- ------ ------ ------- ------
Total cash and
investments 891,718 13,078 287,108 66,845 10,942 52,945 194,930 70,390
Employer and participant
contributions
receivable 3,191 81
Dividends receivable 11 59
Transfers payable to EIP II (2,955) (42)
Other payables (161)
-------- ------- -------- ------- ------- ------- -------- --------
Total net assets $891,804 $13,176 $287,108 $66,845 $10,942 $52,945 $194,930 $70,390
======== ======= ======== ======= ======= ======= ======== =======
Fund Information
-----------------------------------------------------------------------
PART 2
-----------------------------------------------------------------------
Preferred Group of Mutual Funds
------------------------------------------------
Self-
Asset Fixed Small Loan Directed
Growth Allocation Income Cap Fund Fund Total
------------ ----------- ----------- --------- ---------- -------- -------------
Investments, at fair value
(Notes 2 and 4):
Cash and cash equivalents $ $ $ $ $ $ $ 157
Caterpillar Inc. common
stock, 18,598,394
shares 891,561
Collective trust fund 13,078
Registered investment
companies 14,108 14,108
Investment in Master
Trust Net Assets 209,302 49,400 20,411 37,154 15,554 1,014,981
-------- ------- ------- ------- -------- ------- ---------
Total cash and
investments 209,302 49,400 20,411 37,154 15,554 14,108 1,933,885
Employer and participant
contributions
receivable 3,272
Dividends receivable 70
Transfers payable to EIP II (2,997)
Other payables (161)
-------- ------- ------- ------- ------- ------- ---------
Total net assets $209,302 $49,400 $20,411 $37,154 $15,554 $14,108 $1,934,069
======== ======= ======= ======= ======= ======= ==========
</TABLE>
(See notes to financial statements)
-2-
<PAGE>
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)
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------------------------------------------------------------
PART 1 PART 2
------------------------ --------------------------------------------------------------------
Caterpillar Government Caterpillar Preferred Group of Mutual Funds
-------------------------------------------------------
Common Short-term Common Stable
Stock Investment Stock Principal Short-term Money
Fund Fund Fund Fund Government Market Value International
---- ---- ---- ---- ---------- ------ ----- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value
(Notes 2 and 4):
Cash and cash equivalents $ 35 $ $ $ $ $ $ $
Caterpillar Inc. common
stock, 19,309,962
shares* 763,950
Collective trust fund 12,649
Registered investment
companies
Investment in Master
Trust Net Assets 157,656 74,392 11,381 77,692 151,276 72,709
-------- --------- -------- ------- ------- ------- -------- -------
Total cash and
investments 763,985 12,649 157,656 74,392 11,381 77,692 151,276 72,709
Employer and participant
contributions receivable 4,805 107
Dividends receivable 10 53
Transfers payable to EIP II (3,876) (28)
-------- --------- -------- ------- ------- ------- -------- -------
Total net
assets $764,924 $12,781 $157,656 $74,392 $11,381 $77,692 $151,276 $72,709
======== ========= ======== ======= ======= ======= ======== =======
Fund Information
---------------------------------------------------------------------------
PART 2
---------------------------------------------------------------------------
Preferred Group of Mutual Funds
---------------------------------------------------------------------------
Self-
Asset Fixed Small Loan Directed
Growth Allocation Income Cap Fund Fund Total
------------ ----------- ----------- --------- ---------- -------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value
(Notes 2 and 4):
Cash and cash equivalents $ $ $ $ $ $ $ 35
Caterpillar Inc. common
stock, 19,309,962
shares* 763,950
Collective trust fund 12,649
Registered investment
companies 8,987 8,987
Investment in Master
Trust Net Assets 161,657 42,112 20,330 14,653 14,477 798,335
--------- -------- -------- -------- -------- ------- ----------
Total cash
and investments 161,657 42,112 20,330 14,653 14,477 8,987 1,583,956
Employer and participant
contributions
receivable 4,912
Dividends receivable 63
Transfers payable to EIP II (3,904)
--------- -------- -------- -------- -------- ------- ----------
Total net assets $161,657 $ 42,112 $ 20,330 $ 14,653 $ 14,477 $ 8,987 $1,585,027
========= ======== ======== ======== ======== ======= ==========
</TABLE>
- -------------------
* Number of shares reflected on a post-split basis, after effect of the 2 for 1
stock split, in July 1997.
(See notes to financial statements)
-3-
<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, 1997
------------------------------------
(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
---- ---- ---- ---- ---------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Participant (Note 1) $ 49,157 $ 1,615 $ 4,900 $ 2,923 $ 559 $ 2,871 $ 10,628
Employer (Notes 1 and 2) 28,517
--------- ------- -------- -------- ------- -------- --------
77,674 1,615 4,900 2,923 559 2,871 10,628
--------- ------- -------- -------- ------- -------- --------
Investment income:-
Interest 95
Dividends 16,859
Net appreciation
in fair value of:
Common stock 160,222 686
Collective trust fund
Registered investment companies
Plan interest in net investment
income of Master Trust (Note 4) 33,703 4,400 593 3,551 42,029
--------- ------- -------- -------- ------- -------- --------
Net investment income 177,176 686 33,703 4,400 593 3,551 42,029
--------- ------- -------- -------- ------- -------- --------
Withdrawals (72,176) (1,288) (10,615) (3,416) (379) (9,226) (5,055)
Transfers from other plans, net 281 155 21 265 298
Interfund transfers, net (55,794) (618) 101,183 (11,609) (1,233) (22,208) (4,246)
--------- ------- -------- -------- ------- -------- --------
Withdrawals and transfers, net (127,970) (1,906) 90,849 (14,870) (1,591) (31,169) (9,003)
--------- ------- -------- -------- ------- -------- --------
Increase (decrease) in net assets 126,880 395 129,452 (7,547) (439) (24,747) 43,654
Net assets:
Beginning of year 764,924 12,781 157,656 74,392 11,381 77,692 151,276
--------- ------- -------- -------- ------- -------- --------
End of year $ 891,804 $13,176 $287,108 $ 66,845 $10,942 $ 52,945 $194,930
========= ======= ======== ======== ======= ======== ========
</TABLE>
<TABLE>
<CAPTION>
Fund Information
----------------------------------------------------------------------------------
PART 2
---------------------------------------------------------------------------------
Preferred Group of Mutual Funds
----------------------------------------------------------
Self-
Asset Fixed Small Loan Directed
International Growth Allocatiion Income Cap Fund Fund Total
------------- ------ ----------- ------ --- ---- ---- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Participant (Note 1) $ 6,336 $ 13,315 $ 3,464 $ 1,207 $ 2,221 $ $ $ 99,196
Employer (Notes 1 and 2) 28,517
-------- -------- ------- ------- ------- ------- ------- ----------
6,336 13,315 3,464 1,207 2,221 127,713
-------- -------- ------- ------- ------- ------- ------- ----------
Investment income:-
Interest 95
Dividends 16,859
Net appreciation
in fair value of:
Common stock 160,222
Collective trust fund 686
Registered investment companies 1,108 1,108
Plan interest in net investment
income of Master Trust (Note 4) 6,354 47,048 7,484 1,287 6,290 1,340 154,079
-------- -------- ------- ------- ------- ------- ------- ----------
Net investment income 6,354 47,048 7,484 1,287 6,290 1,340 1,108 333,049
-------- -------- ------- ------- ------- ------- ------- ----------
Withdrawals (2,231) (5,341) (1,906) (939) (490) (343) (113,405)
Transfers from other plans, net 117 389 52 10 8 82 7 1,685
Interfund transfers, net (12,895) (7,766) (1,806) (1,484) 14,472 (2) 4,006
-------- -------- ------- ------- ------- ------- ------- ----------
Withdrawals and transfers, net (15,009) (12,718) (3,660) (2,413) 13,990 (263) 4,013 (111,720)
-------- -------- ------- ------- ------- ------- ------- ----------
Increase (decrease) in net assets (2,319) 47,645 7,288 81 22,501 1,077 5,121 349,042
Net assets:
Beginning of year 72,709 161,657 42,112 20,330 14,653 14,477 8,987 1,585,027
-------- -------- ------- ------- ------- ------- ------- ----------
End of year $ 70,390 $209,302 $49,400 $20,411 $37,154 $15,554 $14,108 $1,934,069
======== ======== ======= ======= ======= ======= ======= ==========
</TABLE>
(See notes to financial statements)
-4-
<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
Dividends 14,548
Net appreciation
(depreciation) in fair
value of:
Common stock 175,389
Collective trust fund 645
Registered investment
companies
Plan interest in net
investment income of
Master Trust (Note 4) 41,040 3,849 544 2,978 30,918 10,214
--------- ---------- ---------- --------- ---------- --------- --------- -------------
Net investment income 190,021 645 41,040 3,849 544 2,978 30,918 10,214
--------- ---------- ---------- --------- ---------- --------- --------- -------------
Withdrawals (66,096) (1,264) (6,181) (4,982) (1,064) (11,717) (3,685) (1,724)
Transfers from other
plans, net 68 106 6 96 72 52
Interfund transfers, net (47,834) (563) (25,357) 6,746 1,665 30,382 11,279 3,038
--------- ---------- ---------- --------- ---------- --------- --------- -------------
Withdrawals and
transfers, net (113,930) (1,827) (31,470) 1,870 607 18,761 7,666 1,366
--------- ---------- ---------- --------- ---------- --------- --------- -------------
Increase in net assets 144,717 621 12,358 9,067 1,760 24,142 46,300 17,396
Net assets:
Beginning of year 620,207 12,160 145,298 65,325 9,621 53,550 104,976 55,313
--------- ---------- ---------- --------- ---------- --------- --------- -------------
End of year $ 764,924 $ 12,781 $ 157,656 $ 74,392 $ 11,381 $ 77,692 $ 151,276 $ 72,709
========= ========== ========== ========= ========== ========= ========= =============
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
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 84
Dividends 14,548
Net appreciation (depreciation) in fair
value of
Common Stock 175,389
Collective trust fund 645
Registered investment companies 494 494
Plan interest in net investment income of
Master Trust (Note 4) 24,634 6,327 896 1,506 1,133 124,039
-------- ----------- -------- -------- -------- -------- ----------
Net investment income 24,634 6,327 896 1,506 1,133 494 315,199
-------- ----------- -------- -------- -------- -------- ----------
Withdrawals (3,934) (1,368) (1,365) (231) (222) (103,833)
Transfers from other plans, net 122 28 23 36 609
Interfund transfers, net (6,657) 5,167 (25) 12,525 1,141 8,493
-------- ----------- -------- -------- -------- -------- ----------
Withdrawals and transfers, net (10,469) 3,827 (1,367) 12,294 955 8,493 (103,224)
-------- ----------- -------- -------- -------- -------- ----------
26,140 13,015 850 14,653 2,088 8,987 322,094
Net assets:
Beginning of year 135,517 29,097 19,480 12,389 1,262,933
-------- ----------- -------- -------- -------- -------- ----------
End of year $161,657 $ 42,112 $ 20,330 $ 14,653 $ 14,477 $ 8,987 $1,585,027
======== =========== ======== ======== ======== ======== ==========
</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 1997, the compensation deferral was limited to (a) the greater of $5,000
or 4% of the participant's compensation (limited by the Internal Revenue Code to
$9,500 in 1997) for participants earning in excess of $75,000 or (b) $9,500 for
participants earning less than $75,000.
During 1996, the compensation deferral was limited to (a) the greater of $4,000
or 4% of the participant's compensation (limited by the Internal Revenue Code to
$9,500 in 1996) for participants earning in excess of $70,000 or (b) $9,500 for
participants earning less than $70,000.
Investment programs
- -------------------
Part 1 -
Employer contributions are invested entirely in Caterpillar Inc. common stock.
Participants may elect to have their contributions invested as follows: (1) 100%
in Caterpillar Inc. common stock or (2) 50% in Caterpillar Inc. common stock and
50% in a Collective Government Short-Term Investment Fund. The Collective
Government Short-Term Investment Fund is managed by The Northern Trust Company.
Part 2 -
Participants may elect to have their contributions invested in any combination
of the funds shown on the accompanying statements of changes in net assets
available for plan benefits with fund information. In 1996, a self-directed
fund option was added to allow participants to invest in various other mutual
funds outside of the Preferred Group of Mutual Funds. Contributions to and
withdrawals from this self-directed fund occur through transfers to/from other
elected funds. State Street Bank serves as custodian for funds invested through
this self-directed fund option.
Interfund transfers
- -------------------
Transfers of assets between investment funds are recorded on a net basis in the
statement of changes in net assets available for plan benefits with fund
information.
Vesting and distribution provisions
- -----------------------------------
Part 1 -
Participants are fully vested at all times in Caterpillar Inc. common stock or
units of the Collective Government Short - Term Investment Fund purchased with
participant contributions.
Participants begin vesting in shares purchased with employer contributions
generally after the end of the second year of plan participation. Participants
generally vest at the rate of 33% per year, resulting in full vesting by
participants in employer contributions after five years of service with the
Company. Any amounts not vested at withdrawal which are forfeited will be
applied to reduce the amount of future employer contributions to the Plan.
Shares become fully vested upon retirement, permanent disability or death.
-7-
<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.
Plan termination
- ----------------
In the event the Plan is terminated or partially terminated, each participant in
Part 1 shall also have a fully vested interest in the assets attributable to
employer contributions.
Federal income tax status
- -------------------------
The Internal Revenue Service has determined and informed the Company by letter
dated March 8, 1990, that the Plan and related trust are designed in accordance
with applicable sections of the Internal Revenue Code (IRC). The Plan has been
amended subsequent to amendments covered by the determination letter; however,
the Plan administrator and the Plan's legal counsel believe that the Plan is
designed and is currently being operated in compliance with the applicable
requirements of the IRC.
NOTE 2 - SUMMARY OF SIGNIFICANT
- -------------------------------
ACCOUNTING POLICIES:
-------------------
Basis of accounting
- -------------------
The Plan's accounts are maintained on the accrual basis of accounting.
Investments
- -----------
The Plan's investments are stated at fair value. The Caterpillar Inc. common
stock is valued at quoted market prices. The fair value of the Plan's investment
in the Collective Government Short-Term Investment Fund and the 401(k) Master
Trust (Note 4) is based upon the beginning of the year value of the Plan's
investment plus actual contributions, transfers and allocated investment income
less actual withdrawals. Shares of registered investment companies included in
the self-directed fund option are valued at quoted market prices which represent
the net asset value of shares held by the Plan at year end. Income from
investments is recorded as earned.
-8-
<PAGE>
Contributions
- -------------
Contributions to the Caterpillar Common Stock Fund under Part 1 of the Plan are
made directly to the trust and shares are immediately purchased by the trust on
the open market.
Administrative expenses
- -----------------------
Administrative costs, including trustee fees and certain investment costs, are
paid by the Company.
Use of estimates in the preparation
- -----------------------------------
of financial statements
- -----------------------
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, income and benefit payments.
Actual results could differ from those estimates. The Company believes the
techniques and assumptions used in establishing these amounts are appropriate.
NOTE 3 - UNIT VALUES:
- --------------------
Part 2 of the Plan assigns units to participants directing investments to the
Caterpillar Common Stock Fund. The unit values assigned by the Plan reflect the
current values of the individual funds. Total units held (in thousands) by the
Plan and their respective unit values at each month end as follows:
<TABLE>
<CAPTION>
Units Unit Value
----- ----------
1996
----
<S> <C> <C>
December 6,087 26.70
1997
----
January 6,453 27.49
February 6,107 27.72
March 4,007 28.36
April 5,889 31.32
May 6,074 34.20
June 6,742 37.40
July 7,167 38.94
August 7,416 40.22
September 7,792 37.49
October 7,864 35.73
November 8,545 33.60
</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 Trust.
The Master Trust invests in the Preferred Group of Mutual Funds, registered
investment companies which are sponsored by Caterpillar Investment Management
Ltd. (CIML), a wholly-owned subsidiary of the Company. The Preferred Group of
Mutual Funds is comprised of the following:
Preferred Stable Principal Fund
Preferred Short-Term Government Fund Preferred Value Fund
Preferred Growth Fund Preferred Fixed Income Fund
Preferred Money Market Fund Preferred International Fund
Preferred Asset Allocation Fund Preferred Small Cap Fund
CIML manages the Preferred Small Cap Fund. CIML also managed the Preferred
Short-Term Government Fund through October 1997. All other funds are managed by
unrelated investment managers. Caterpillar Securities, Inc., a wholly-owned
subsidiary of CIML, distributes the shares of the mutual funds to the Master
Trust.
The percentage of the Plan's participation in the Master Trust was determined
based on the November 30, 1997 and 1996 market values of net assets, as
accumulated by the Trustee for the investment funds of each plan. At November
30, 1997 and 1996, the Plan's pro rata interest in the quoted market values of
net assets of each of the funds of the Master Trust was as follows:
1997 1996
------ ------
Caterpillar Inc. Common Stock Fund 86.21% 86.41%
Preferred Stable Principal Fund 70.30% 70.95%
Preferred Short-Term Government Fund 76.72% 76.97%
Preferred Money Market Fund 84.60% 85.58%
Preferred Value Fund 81.69% 81.47%
Preferred International Fund 85.06% 85.44%
Preferred Growth Fund 81.34% 81.37%
Preferred Asset Allocation Fund 86.07% 86.84%
Preferred Fixed Income Fund 87.45% 88.10%
Preferred Small Cap Fund 87.18% 86.35%
Loan Fund 69.30% 71.93%
Investment valuation
- --------------------
The Master Trust's investments are stated at fair value. Common stock and cash
and cash equivalents are valued at quoted market prices. Shares of registered
investment companies are valued at quoted market prices which represent the net
asset value of shares held by the Master Trust at year end. Participant loans
are valued at cost which approximates fair value.
The net investment income or loss of the Master Trust is reflected in the
financial statements of the Plan based on the actual earnings of each investment
fund as allocated to the Plan based on average investment balances throughout
the year. Refer to pages 11 through 14 for analyses of the net assets and
changes in net assets of the Master Trust as of November 30, 1997 and 1996.
-10-
<PAGE>
CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN
---------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS
---------------------------------------------
NOVEMBER 30, 1997
-----------------
(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 $ 14,588 $ $ $ $ $ $
Common stock 314,360
Registered investment companies 94,548 14,174 62,201 237,185 82,017 255,414
Participant loans
-------- ------- ------- ------- -------- ------- --------
Total investments 328,948 94,548 14,174 62,201 237,185 82,017 255,414
Dividend and interest receivable 99
Transfers receivable from EIP 1 2,955 42
Contributions receivable 960 399 76 311 1,261 664 1,610
Other receivable/(payable), net 88 136 11 32 174 73 293
-------- ------- ------- ------- -------- ------- --------
Net assets $333,050 $95,083 $14,261 $62,586 $238,620 $82,754 $257,317
======== ======= ======= ======= ======== ======= ========
</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 $ $ $ $ $ 14,588
Common stock 314,360
Registered investment companies 56,985 23,173 42,188 867,885
Participant loans 23,198 23,198
------- ------- ------- -------- ----------
Total investments 56,985 23,173 42,188 23,198 1,220,031
Dividend and interest receivable 99
Transfers receivable from EIP 1 2,997
Contributions receivable 397 143 360 6,181
Other receivable/(payable), net 21 24 74 (751) 175
------- ------- ------- ------- ----------
Net assets $57,403 $23,340 $42,622 $22,447 $1,229,483
======= ======= ======= ======= ==========
</TABLE>
-11-
<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
Fund Fund Government Market Value International
---- ---- ---------- ------ ----- -------------
<S> <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
Participant loans
-------- -------- ---------- ------- -------- -------
Total investments 177,988 104,333 14,706 90,561 184,668 84,269
Dividend and interest receivable 28
Transfers receivable from EIP 1 3,876 28
Contributions receivable 453 436 69 445 870 592
Other receivable/(payable), net 103 89 10 (256) 149 239
-------- -------- ------- -------- -------- -------
Net assets $182,448 $104,858 $14,785 $90,778 $185,687 $85,100
======== ======== ======= ======= ======== =======
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
--------------------------------------------------------------------
Asset Fixed Small Loan
Growth Allocation Income Cap Fund Total
------ ---------- ------ --- ---- -----
<S> <C> <C> <C> <C> <C> <C>
Investments, at fair value:
Cash and cash equivalents $ $ $ $ $ $ 10,453
Common stock 167,535
Registered investment companies 197,146 48,053 22,954 16,772 763,462
Participant loans 20,797 20,797
-------- ------- ------- ------- ------- --------
Total investments 197,146 48,053 22,954 16,772 20,797 962,247
Dividend and interest receivable 28
Transfers receivable from EIP 1 3,904
Contributions receivable 1,260 297 132 127 4,681
Other receivable/(payable), net 261 146 (10) 72 (670) 133
-------- ------- ------- ------- ------- --------
Net assets $198,667 $48,496 $23,076 $16,971 $20,127 $970,993
======== ======= ======= ======= ======= ========
</TABLE>
-12-
<PAGE>
CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN
---------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS
--------------------------------------------------------
FOR THE YEAR ENDED NOVEMBER 30, 1997
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
-------------------------------------------------------------
Caterpillar
Common Stable
Stock Principal Short-term Money
Fund Fund Government Market Value International
---- ---- ---------- ------ ----- -------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:-
Interest $ 796 $ $ $ $ $
Dividends 4,744
Net appreciation in fair value of:
Common stock 33,272
Registered investment companies 6,227 774 4,122 51,374 7,320
-------- -------- ------- -------- -------- ---------
Net investment income 38,812 6,227 774 4,122 51,374 7,320
-------- -------- ------- -------- -------- ---------
Contributions to all plans 8,777 5,437 892 4,416 14,289 8,290
-------- -------- ------- -------- -------- ---------
Withdrawals from all plans (11,838) (5,438) (537) (10,417) (6,904) (2,552)
-------- -------- ------- -------- -------- ---------
Transfers from EIP 1 55,793 618
-------- -------- ------- -------- -------- ---------
Interfund transfers, net 59,058 (16,001) (1,653) (26,931) (5,826) (15,404)
-------- -------- ------- -------- -------- ---------
Increase (decrease) in net assets 150,602 (9,775) (524) (28,192) 52,933 (2,346)
Net assets:
Beginning of year 182,448 104,858 14,785 90,778 185,687 85,100
-------- -------- ------- -------- -------- ---------
End of year $333,050 $ 95,083 $14,261 $ 62,586 $238,620 $ 82,754
======== ======== ======= ======== ======== =========
Preferred Group of Mutual Funds
--------------------------------------------
Asset Fixed Small Loan
Growth Allocation Income Cap Fund Total
------ ---------- ------ --- ---- -----
Investment income:-
Interest $ $ $ $ $ 1,851 $ 2,647
Dividends 4,744
Net appreciation in fair value of:
Common stock 33,272
Registered investment companies 57,870 8,647 1,481 7,239 145,054
-------- ------- ------- ------- ------- ----------
Net investment income 57,870 8,647 1,481 7,239 185,717
-------- ------- ------- ------- ------- ----------
Contributions to all plans 18,060 4,665 1,741 2,951 69,518
-------- ------- ------- ------- ------- ----------
Withdrawals from all plans (6,939) (2,099) (1,036) (560) (530) (48,850)
-------- ------- ------- ------- ------- ----------
Transfers from EIP 1 56,411
-------- ------- ------- ------- ------- ----------
Interfund transfers, net (10,341) (2,306) (1,922) 16,021 999 (4,306)
-------- ------- ------- ------- ------- ----------
Increase (decrease) in net assets 58,650 8,907 264 25,651 2,320 258,490
Net assets:
Beginning of year 198,667 48,496 23,076 16,971 20,127 970,993
-------- ------- ------- ------- ------- ----------
End of year $257,317 $57,403 $23,340 $42,622 $22,447 $1,229,483
======== ======= ======= ======= ======= ==========
</TABLE>
-13-
<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
Fund Fund Government Market Value International
----------- --------- ---------- ------ ----- -------------
<S> <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
-------- -------- ------- ------- -------- -------
Net investment income 47,290 5,528 723 3,508 38,004 11,951
-------- -------- ------- ------- -------- -------
Contributions to all plans 5,017 6,060 969 3,720 10,170 7,538
-------- -------- ------- ------- -------- -------
Withdrawals from all plans (7,456) (7,311) (1,202) (12,391) (4,908) (2,015)
-------- -------- ------- ------- -------- -------
Transfers from EIP 1 47,834 563
-------- -------- ------- ------- -------- -------
Interfund transfers, net (77,121) 4,923 1,474 32,054 12,733 2,377
-------- -------- ------- ------- -------- -------
Increase in net assets 15,564 9,200 1,964 27,454 55,999 19,851
Net assets:
Beginning of year 166,884 95,658 12,821 63,324 129,688 65,249
-------- -------- ------- ------- -------- -------
End of year $182,448 $104,858 $14,785 $90,778 $185,687 $85,100
======== ======== ======= ======= ======== =======
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
----------------------------------
Asset Fixed Small Loan
Growth Allocation Income Cap Fund Total
------ ---------- ------ ----- ---- -----
<S> <C> <C> <C> <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 30,129 7,308 1,021 1,707 99,879
-------- ------- ------- ------- ------- --------
Net investment income 30,129 7,308 1,021 1,707 1,489 148,658
-------- ------- ------- ------- ------- --------
Contributions to all plans 15,965 3,759 1,864 1,157 56,219
-------- ------- ------- ------- ------- --------
Withdrawals from all plans (5,228) (1,702) (1,481) (240) (431) (44,365)
-------- ------- ------- ------- ------- --------
Transfers from EIP 1 48,397
-------- ------- ------- ------- ------- --------
Interfund transfers, net (8,267) 5,610 (607) 14,347 3,314 (9,163)
-------- ------- ------- ------- ------- --------
Increase in net assets 32,599 14,975 797 16,971 4,372 199,746
Net assets:
Beginning of year 166,068 33,521 22,279 15,755 771,247
-------- ------- ------- ------- ------- --------
End of year $198,667 $48,496 $23,076 $16,971 $20,127 $970,993
======== ======= ======= ======= ======= ========
</TABLE>
-14-
<PAGE>
ADDITIONAL INFORMATION
-----------------------
<PAGE>
SCHEDULE 1
----------
CATERPILLAR INC,
---------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
NOVEMBER 30, 1997
-----------------
<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, per or maturity value Cost value
---------------- ----------------------------------- ---- -------
<S> <C> <C> <C> <C>
* Caterpillar Inc. Common stock; 18,598,384 shares $ 413,234,658 $ 891,560,512
============= ===============
* Northern Trust Collective Government Short-Term Investment Fund $ 13,077,699 $ 13,077,699
============= ===============
* Caterpillar 401(k) Master Trust $ 655,686,455 $ 1,014,981,000
============= ===============
Alger Growth Class B; 7,827.51 units $ $ 91,504
American Century Benham Target 2005; 1,198.60 units 79,707
Century Benham Target 2020; 377.08 units 11,305
Century Value; 4,979.83 units 39,839
Century Global Gold; 9,347.46 units 57,674
Century 20th Century Ultra; 434.49 units 14,838
Heritage Fund; 4,464.29 units 4,062
Ariel Growth Class A; 133.19 units 5,541
Artisan International; 5,804.42 units 79,579
Babson Value Fund; 2,981.46 units 142,156
Baron Asset Fund; 7,052.40 units 328,219
Growth and Income Fund; 1,300.35 units 31,547
Small Cap Fund; 460.61 units 4,551
Berger Small Cap Value Retail; 434.53 units 9,586
Small Company Growth Fund; 658.21 units 3,166
New Generation Fund; 93.54 units 1,247
Brinson Brandywine Blue; 3,256.28 units 92,055
Brandywine Fund; 1,147.85 units 38,028
Bull & Bear Gold Investment Limited; 1,550.76 units 7,304
Clipper Clipper Fund; 99 units 8,628
Cohen & Steers Realty Shares: 5,404.28 units 277,239
Colonial Newport Tiger Fund Class A; 35.03 units 321
Crabbe Huson Special; 205.88 units 3,306
Dodge & Co. Balance; 814.82 units 56,833
Stock; 37.94 units 3,783
Dreyfus Premier Worldwide Growth; 366.03 units 9,191
Aggressive Growth Fund; 597.09 units 10,318
Aggressive Value Fund; 1,384.52 units 35,208
Midcap Value Fund; 1,389.53 units 30,014
Small Company Fund; 1,908.82 units 41,479
Large Company Fund; 923.52 units 19,911
New Leaders Fund; 378.55 units 17,852
Focus Trust Investment Fund; 516.98 units 8,137
Founders Blue Chip Fund; 9,350.55 units 79,573
Growth Fund; 590.91 units 11,653
Passport Fund; 1,504.16 units 21,540
Worldwide Fund; 1,386.28 units 33,007
Growth Class; 94.70 units 2,268
</TABLE>
(Continued)
-15-
<PAGE>
SCHEDULE I
-----------
CATERPILLAR INC.
EMPLOYEES' INVESTMENT PLAN
--------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
NOVEMBER 30, 1997
-----------------
<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>
Franklin Strategic Global Healthcare Fund; 49.95 units $ $ 1,001
Fremont Micro Capital; 156.53 units 3,476
GT Global High Income; 970.25 units 15,291
GAM International Fund; 355.29 units 9,916
Govett Smaller Company Fund; 57.62 units 1,172
Guinness Flight China Fund; 2,717.16 units 37,388
Asia Small Cap; 1,466.89 units 15,065
John Hancock Special Equity B Fund; 571.43 units 14,063
Harbor Bond Fund; 7,802.59 units 90,666
International Growth Fund; 794.72 units 12,890
Harris Associates Oakmark Fund; 7,727.32 units 301,906
Oakmark International; 711.82 units 9,218
Oakmark Small Cap; 3,714.39 units 69,570
Oakmark Select; 3,034.62 units 49,495
Heartland Group Group Mid Cap; 394.63 units 5,087
Small Cap Fund; 3,512.45 units 55,251
Value Plus; 1,680.54 units 28,838
Hotchkis & Wiley International Fund; 6,703.32 units 156,992
IAI Investments Bond; 1,642.94 units 15,591
Capital Appreciation Fund; 1,059.41 units 18,402
Invesco Strategic Gold Fund; 8,492.05 units 20,041
Strategic Financial; 258.77 units 7,807
Strategic Port Utilities; 412.88 units 5,458
Janus Janus Fund; 1,032.40 units 30,549
Growth and Income Fund; 4,417.37 units 111,230
Worldwide Fund; 13,735.33 units 549,413
Twenty Fund; 1,413.67 units 49,931
Flexible Income Fund; 2,327.33 units 23,297
Special Situations; 2,759.03 units 38,268
Olympus Fund; 5,536.63 units 100,379
High Yield Bond; 1,331.35 units 16,054
Enterprise Fund; 322.08 units 10,129
Overseas Fund; 16,226.12 units 287,202
Mercury Fund; 742.34 units 13,822
Balanced Fund; 517.72 units 8,656
Japan Fund VII Investment Fund; 185.30 units 1,388
Kaufmann Income Fund; 16,346.44 units 104,127
Lexington Troika Dialog Russia Income; 193.28 units 3,342
Worldwide Emerging Markets; 614.91 units 6,315
Lindner Bulwark Bulwark; 838.42 units 5,140
Utilities; 1,365.15 units 22,211
Long Loaf Small Caps; 383.54 units 8,691
Loomis Sayles Bond Fund; 990.88 units 13,080
Inut Grade Bond Retail; 1,731.36 units 18,941
MAS Value Fund; 1,322.97 units 26,010
</TABLE>
(Continued)
-16-
<PAGE>
SCHEDULE I
----------
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
NOVEMBER 30, 1997
-----------------
<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>
Managers International Equity Fund; 195.95 units $ $ 9,365
Montgomery Emerging Markets Fund Class R; 3,129.36 units 40,463
Latin America; 385.54 units 4,098
Emerging Asia Fund Class R; 827.32 units 8,910
Global Communication Fund; 124.49 units 2,374
Small Capital Opportunities Fund; 1,952.27 units 37,093
Select 50; 28.49 Units 59,231
Growth Fund; 11,726.17 units 297,610
Mutual Series Shares Fund Class Z; 519.94 units 11,834
Qualified Income Fund; 7,897.07 units 154,625
Beacon Fund; 4,181.32 units 64,476
Discovery Fund; 8,846.24 units 180,286
European Fund; 701.12 units 9,535
Genesis Trust; 3,757.59 units 83,456
Neuberger and Berman Guardian Trust Fund; 2,030.40 units 37,938
Focus Trust Select; 100.62 units 2,098
Northeast Investors CTFS Beneficial Fund; 12,695.36 units 147,139
Oberweis Emerging Growth Fund; 760.24 units 20,374
Oppenheimer Strategic Income Fund Class C; 4,131.36 units 20,161
Papp American Abroad, Inc.; 3,667.23 units 95,788
Payden & Rygal Growth and Income Class A; 4,078.32 units 54,119
PBHG Growth Fund; 19,900.52 units 505,473
Large Capital Growth Fund; 1,367.59 units 25,642
Emerging Growth Fund; 6,250.85 units 146,645
Select Equity Fund; 6,247.82 units 124,394
Technology and Communications Fund; 3,319.83 units 62,313
Small Cap Value; 2,767.29 units 39,295
Mid Cap Value; 2,791.54 units 38,719
Large Cap Value; 976.04 units 12,093
Large CAp 20; 1,062.40 units 13,259
Core Growth Fund; 3,155.57 units 37,583
PIMCO Long-Term U.S. Government; 1,912.07 units 20,039
Perkins Opportunity Fund; 21.26 units 290
Putnam OTC Emerging Growth Fund; 104.31 units 1,650
Robertson Stephens Value Fund; 6,343.25 units 151,477
Contrarian Fund; 2,181.60 units 26,572
Diversified Growth; 1,982.28 units 26,404
Microcap Growth; 3,236.42 units 47,025
Growth and Income Fund; 324.15 units 4,279
Global Natural Resources Fund; 333.73 units 4,082
T Rowe Price Dividend Growth Fund; 528.64 units 10,710
Equity Income Fund; 2,787.79 units 75,911
Cap Appreciation; 421.64 units 6,962
Blue Chip Fund; 634.93 units 15,086
Growth & Income; 840.34 units 22,555
</TABLE>
(Continued)
-17-
<PAGE>
SCHEDULE I
----------
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
NOVEMBER 30, 1997
-----------------
<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>
Mid Capital Growth Fund; 634.93 units $ $17,849
New Era Fund; 2,713.98 units 78,081
New Horizon Fund; 809.71 units 19,182
International Stock Fund; 1,838.57 units 25,924
European Fund; 2,859.31 units 57,701
International New Asia Fund; 546.45 units 3,202
Science & Technology Fund; 1,769.76 units 55,942
Spectrum Growth Fund; 190.40 units 3,319
Spectrum Income Fund; 3,053.72 units 35,759
Health Sciences; 534.76 units 7,749
Rydex Ursa Fund; 4,095.80 units 23,059
Juno Fund; 1,346.95 units 11,813
Nova Fund; 4,470.88 units 109,268
Safeco Equity Income Fund; 6,600.18 units 132,532
Growth Fund; 308.26 units 7,700
Scudder Mutual Income Gold; 1,031.02 units 7,661
Latin America; 141.66 units 3,728
Growth & Income; 560.20 units 16,229
Seligman Communication Fund; 72.70 units 1,763
SSGA Money Market Fund; 1,958,386.71 units 1,958,387
S&P 500 Index Fund; 5,623.68 units 109,099
Small Cap Fund; 5,075.68 units 110,041
Emerging Market Fund; 1,701.61 units 16,438
SoGen International Fund; 1,263.99 units 35,821
Sound Share Fund Income; 340.25 units 9,813
Stein Roe Income Fund; 1,540.04 units 15,400
Young Investor Fund; 1,771.38 units 40,104
Capital Opportunities Fund; 5,295.60 units 149,336
Growth & Income; 1,155.17 units 26,534
Trust Special Venture; 1,152.96 19,058
Strong Corporate Bond Fund; 644.27 units 84,928
Growth Fund; 6,040.44 units 129,749
Schafer Value Fund; 690.21 units 45,084
Growth & Income; 1,552.08 units 25,842
International Bond Fund; 1,764.99 units 19,962
Income High Yield, 3,610.12 units 43,466
Opportunity Fund; 862.73 units 36,295
Templeton Developing Markets Class I Fund; 287.85 units 4,030
Developing Markets Class II Fund; 2,980.71 units 41,104
World Fund Class I; 1,144.91 units 19,463
Foreign Fund; 1,306.07 units 13,296
Foreign Class II Fund; 1,988.81 units 20,007
Growth Class I Fund; 2,792.26 units 55,287
Third Avenue Value Fund; 2,331.79 units 73,964
Torray Fund; 553.81 units 18,337
</TABLE>
(Continued)
-18-
<PAGE>
SCHEDULE I
----------
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
NOVEMBER 30, 1997
-----------------
<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>
Tip Small Capital Fund; 164.75 units $ $ 3,997
Oak Value Fund; 571.41 units 12,497
Tweedy Browne Global Value Fund; 10,745.37 units 186,969
American Value Fund; 2,865.03 units 59,822
United Services U.S. World Gold Fund; 3,922.21 units 41,968
Bonnel Growth; 782.82 units 12,674
Global Resources; 678.43 units 4,925
Real Estate; 349.16 units 5,541
Gold Shares Fund; 100,890.73 units 57,508
Value Line Aggressive Income; 1,861.04 units 15,782
Van Wagoner Micro-Cap Fund; 212.24 units 2,369
Emerging Growth Fund; 10,311.44 units 114,560
Mid-Cap Fund; 496.80 units 5,773
Income Post Venture; 77.89 units 783
Vanguard Bond Index Total Bond Market Fund; 3,121.39 units 31,339
Windsor II Portfolio; 2,211.72 units 67,391
Index Trust Fund; 5,558.02 units 498,110
Value Index Fund; 1,761.08 units 36,965
Growth Index Fund; 4,035.03 units 91,192
Stock Market; 5,406.28 units 122,398
International Growth; 2,301.46 units 39,194
Prime Cap; 1,687.72 units 69,821
Asset Allocation; 474.80 units 10,555
Fixed Income; 2,170.39 units 20,033
GNMA Fixed; 2,565.82 units 26,659
Vontobel Eastern European Equity; 1,665.28 units 24,247
Warburg Pincus Capital Appreciation Fund; 1,229.53 units 26,632
Emerging Growth Fund; 553.54 units 21,820
International Equity Fund; 2,695.55 units 54,235
Emerging Markets Fund; 722.22 units 7,381
Post-Venture Capital Fund - Common Shares; 264.07 units 4,648
Small Company Value Fund - Common Shares; 1,731.96
units 31,730
Wasatch Mid-Cap Fund; 246.94 units 5,006
White Oak Growth Stock; 32.91 units 973
Wright International Blue Chip; 947.74 units 15,297
Equifund Netherlands Fund; 641.07 units 6,577
Yacktran Income Fund; 1,281.58 units 19,698
Fidelity Worldwide Fund; 135.80 units 2,299
Diversified International Fund; 3,342.84 units 54,923
Latin America; 274.97 units 4,554
Asset Manager Income; 3,658.99 units 45,445
Spartan Market Index Fund; 325.48 units 22,204
Capital & Income Fund; 1,735.72 units 17,166
</TABLE>
(Continued)
-19-
<PAGE>
SCHEDULE I
----------
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
NOVEMBER 30, 1997
-----------------
<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>
Stock Selector Fund; 2,727.86 units $ $ 82,354
Asset Manager: Growth Fund; 128.51 units 2,593
Contra Fund; 2,718.72 units 135,827
Utilities; 1,189.03 units 24,589
Equity - Income; 1,932.01 units 102,203
Real Estate Investment Portfolio; 4,928.11 units 102,307
Equity - Income Fund II; 1,631.23 units 46,996
Spartan High Income Fund; 5,861.45 units 78,192
Mortgage Securities Portfolio; 1,952.66 units 21,479
Magellan Fund; 72.78 units 7,157
Puritan Fund; 3,218.62 units 63,085
Low-Priced Stock Fund; 306.95 units 7,812
Growth and Income Portfolio; 1,952.92 units 73,430
Dividend Growth Fund; 1,435.83 units 34,445
Select Energy Portfolio; 451.93 units 10,941
Select Technology Portfolio; 711.22 units 39,921
Select Health Care Portfolio; 101.58 units 11,744
Select Utilities Growth Portfolio; 72.87 units 3,981
Select Natural Gas Portfolio; 500.28 units 6,644
Select Developing Communications Portfolio; 585.58 units 13,814
Select Home Finance Portfolio; 1,691.86 units 90,024
Select Energy Service Portfolio; 1,317.85 units 40,656
Select Biotechnology; 82.17 units 2,969
Select American Gold Portfolio; 161.55 units 2,299
Select Telecommunication Portfolio; 615.84 units 31,776
Select Food and Agriculture Portfolio; 56.03 units 2,758
Select Electronics Portfolio; 6,828.89 units 282,648
Select Computers Portfolio; 425.14 units 21,397
Select Insurance; 77.34 units 3,017
Select Financial Services; 82.35 units 8,076
Select Regional Banks; 3,109.06 units 125,917
Select Software & Computer; 194.59 units 8,564
Select Brokerage & Investment; 716.07 units 25,485
Select Precious Metals; 996.23 units 9,185
Value Fund; 1,244.63 units 76,831
-----------
$14,108,441
===========
</TABLE>
-20-
<PAGE>
SCHEDULE II
-----------
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
ITEM 27d - SCHEDULE OF REPORTABLE (5%) TRANSACTIONS
---------------------------------------------------
FOR THE YEAR ENDED NOVEMBER 30, 1997
------------------------------------
<TABLE>
<CAPTION>
(a) (b) (c) (d) (e)
Identity of Purchase Selling Lease
party involved Description of assets price price rental
- -------------- --------------------- -------- ------- ------
<S> <C> <C> <C> <C>
Caterpillar Inc. Common stock:
Series of 50 purchases $95,943,945 $ $
<CAPTION>
(f) (g) (h) (i)
Current
value
Expense of asset on
incurred with Cost transaction Net gain
transaction of asset date or (loss)
----------- -------- ---- ---------
<S> <C> <C> <C>
$60,000 $95,943,945 $95,883,945 $
</TABLE>
-21-
<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 15, 1998 related to the financial
statements of the Employees' Investment Plan, which is included in this Annual
Report on Form 11-K.
/s/ PRICE WATERHOUSE LLP
Peoria, Illinois
May 15, 1998
