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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, 1998 |
OR
| [ ] |
TRANSITION REPORT PURSUANT TO SECTION 15(d) |
| OF THE SECURITIES EXCHANGE ACT OF 1934 [No Fee Required] |
|
| For the transition period from _____ to _____ |
Commission File Number 1-768
EMPLOYEES' INVESTMENT PLAN
(Full title of the Plan)
CATERPILLAR INC.
(Name of issuer of the securities held
pursuant to the Plan)
100 NE ADAMS STREET, PEORIA, ILLINOIS
61629
(Address of principal executive offices)
REQUIRED INFORMATION
Item 1.
The audited statement of net assets available for plan benefits as of the end of the latest two fiscal years of the Plan is attached hereto as Exhibit A.
Item 2.
The audited statement of changes in net assets available for plan benefits for each of the latest two fiscal years of the Plan is attached hereto as Exhibit B.
Item 3.
The statements required by Items 1 and 2 have been prepared in accordance with the applicable financial reporting requirements of ERISA.
Item 4.
The Consent of Independent Accountants is attached hereto as Exhibit A.
Report of Independent Accountants
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 benefits and the related statements of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the Caterpillar Inc. Employees' Investment Plan (the Plan) at November 30, 1999 and 1998, and the changes in net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States. 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 auditing standards generally accepted in the United States, 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 conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes, of reportable transactions and of non-exempt transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plan's management. The supplemental schedules 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.
Peoria, Illinois
May 26, 2000
CATERPILLAR INC.
EMPLOYEES' INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
NOVEMBER 30, 1999 AND 1998
(Dollars in 000's)
| 1999 |
1998
|
|
| Investments |
$ 2,258,381
|
$ 2,141,953
|
| Employer contributions receivable |
841
|
1,186
|
| Participant contributions receivable |
1,597
|
2,101
|
| Interest and dividends receivable |
66
|
66
|
| |
|
|
| Total assets |
2,260,885
|
2,145,306
|
| |
|
|
| Transfers payable to Part 2 |
(3,939)
|
(3,726)
|
| Other payables |
(5)
|
|
| |
|
|
| Total liabilities |
(3,939)
|
(3,731)
|
| |
|
|
| Net assets available for benefits |
$ 2,256,946
|
$ 2,141,575
|
| |
|
(The accompanying notes are an integral part of the financial statements)
CATERPILLAR INC.
EMPLOYEES' INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED NOVEMBER 30, 1999 AND 1998
(Dollars in 000's)
| 1999 |
1998
|
|
| Contributions: |
||
| Participants |
$ 121,953
|
$ 130,021
|
| Employer |
33,013
|
32,627
|
| |
|
|
| 154,966 |
162,648
|
|
| |
|
|
| Investment income: |
||
| Interest |
96
|
103
|
| Dividends |
21,946
|
19,877
|
| Net appreciation (depreciation) in fair value of: |
||
| Common stock |
(46,636)
|
32,107
|
| Collective trust fund |
618
|
692
|
| Registered investment companies |
5,139
|
1,073
|
| Plan interest in net investment income of Master Trust |
171,849
|
110,085
|
| |
|
|
| Net investment income |
153,012
|
163,937
|
|
|
|
|
| Withdrawals | (194,370)
|
(121,232)
|
| Transfers (to)/from other plans, net |
1,763
|
2,153
|
| |
|
|
| Withdrawals and transfers, net |
(192,607)
|
(119,079)
|
| |
|
|
| Increase in net assets available for benefits |
115,371
|
207,506
|
| Net assets available for benefits: |
||
| Beginning of year |
2,141,575
|
1,934,069
|
| |
|
|
| End of year |
$2,256,946
|
$2,141,575
|
| |
|
(The accompanying notes are an integral part of the financial statements.)
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 contributory defined contribution plan established by Caterpillar Inc. (the Company) to enable eligible employees of the Company and its subsidiaries (the participating employers) which adopt the Plan to accumulate funds.
Participation
Generally, employees of participating employers, 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 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 vested accounts.
Loan provisions
The Plan provides for participant loans against eligible participants' Part 2 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 percent as determined at the time of loan origination. Repayments, including interest, are made through after-tax payroll deductions and are credited to the individual participant's account balance.
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.
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. For 1999 and 1998, the compensation deferral was limited to (a) the greater of $6,000 or 4% of the participant's compensation (limited by the Internal Revenue Code to $10,000 in 1999) for participants earning in excess of $80,000 or (b) $10,000 for participants earning less than $80,000.
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 following ten investment fund options at November 30, 1999:In addition, a self-directed fund option allows participants to invest in various other mutual funds outside of the standard Plan options. State Street Bank serves as custodian for funds invested through this self-directed fund option.
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, and earnings thereon.
Participants begin vesting in shares purchased with employer contributions generally after the end of the second year of plan participation. Participants generally vest at the rate of 33% per year, resulting in full vesting by participants in employer contributions after five years of service with the Company. Any amounts not vested at withdrawal which are forfeited will be applied to reduce the amount of future employer contributions to the Plan. Shares become fully vested upon retirement, permanent disability or death.
While an employee, a participant may elect to withdraw all 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 in participants' accounts are distributable.
Transfers from Part 1 to Part 2
On a monthly basis, participants in Part 1 are allowed to transfer some or all of their vested balances in the Part 1 accounts to Part 2 of the Plan. Participants are allowed only one such transfer per month.
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
Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, each participant in Part 1 shall have a fully vested interest in the assets attributable to employer contributions and earnings thereon. Any unallocated assets of the plan will be allocated to participant accounts and distributed in such a manner as the company may determine.
Federal income tax status
The Internal Revenue Service has determined and informed the Company by letter dated April 13, 1999, 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 determination letter; however, the Plan administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. Therefore, they believe that the Plan is qualified and the related trust is tax-exempt as of the financial statement date.
Risks and uncertainties
The Plan provides for various investment options in any combination of stocks, bonds, fixed income securities, mutual funds and other investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities could occur in the near term and that such changes could materially affect participants' account balances and the amounts reported in the statement of net assets available for benefits.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
New accounting standards
In September 1999, the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants issued Statement of Position (SOP) 99-3, Accounting for and Reporting of Certain Defined Contribution Benefit Plan Investments and Other Disclosure Matters (SOP 99-3). This SOP simplifies the disclosure of certain investment information of defined contribution plans. SOP 99-3 is effective for financial statements for plan years ending after December 15, 1999, with earlier application encouraged. The Plan has elected to adopt the provisions of this SOP for its Plan year ended November 30, 1999. The primary impact on the 1999 financial statements is the elimination of previously provided information by investment fund option.
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.
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.
Transfers payable
As detailed in Note 1, on a monthly basis, participants in Part 1 are allowed to transfer vested balances in the Part 1 accounts to Part 2 of the Plan. At November 30, transfers payable represent such transfers for the month of November. The related receivable is recorded by the Master Trust and is included in the Plan's Investment in the Master Trust Net Assets at November 30, 1999 and 1998.
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 - INVESTMENTS:
All employer matching contributions under Part 1 of the Plan are directed by the Company into a Caterpillar Inc. Common Stock Fund. By definition, this fund is nonparticipant directed. Details of the net assets of Part 1 - Caterpillar Inc. Common Stock Fund and significant components of the changes in net assets relating to this fund are as follows:
| November 30, |
||
| 1999 |
1998
|
|
| Net assets - Part 1 - Caterpillar Inc. Common Stock Fund: |
||
| Common stock |
$ 795,329
|
$ 892,674
|
| Common and Collective Trust |
29
|
|
| Employer contributions receivable |
841
|
1,186
|
| Participant contributions receivable |
1,493
|
1,990
|
| Interest and dividends receivable |
13
|
14
|
| Transfers payable to Part 2 |
(3,881)
|
(3,712)
|
| Other payables |
(5)
|
|
| |
|
|
| Net assets - Part 1 - Caterpillar Inc. Common Stock Fund |
$ 793,824
|
$ 892,147
|
| |
|
|
| For the year ended
|
||
| 1999 |
1998
|
|
| Changes in net assets - Part 1 - Caterpillar Inc. Common Stock Fund: |
||
| Employer contributions |
$ 61,478
|
$ 58,167
|
| Participant contributions |
33,013
|
32,627
|
| Interest and dividends |
22,042
|
19,980
|
| Net (depreciation) appreciation |
(46,636)
|
32,107
|
| Withdrawals |
(85,215)
|
(59,632)
|
| Transfers to participant-directed investments |
(83,005)
|
(82,906)
|
| |
|
|
| Net (decrease) increase | $ (98,323) |
$ 343
|
| |
|
|
The following table presents individual investments that represent 5% or more of the Plan's net assets at November 30. Any of these investments that are also nonparticipant-directed are further identified with an asterisk(*).
| 1999 |
1998
|
|
|
|
||
| Caterpillar Inc. Common Stock |
$ 795,329*
|
$ 892,174*
|
| Investments in Caterpillar Inc. 401(k) Master Trust net assets | 1,415,230
|
1,220,856
|
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), 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 options available to the participants through the Preferred Group of Mutual Funds are described in Note 1.
CIML manages the Preferred Small Cap Fund and the Preferred Short-Term Government Fund. All other funds are managed by unrelated investment managers. Caterpillar Securities, Inc., a wholly-owned subsidiary of CIML, distributes the shares of the mutual funds to the Master Trust.
The percentage of the Plan's participation in the Master Trust was determined based on the November 30, 1999 and 1998 market values of net assets, as accumulated by the Trustee for the investment funds of each plan. At November 30, 1999 and 1998, the Plan's pro rata interest in the quoted market values of net assets of the Master Trust was 83.59% and 83.30%, respectively.
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. Details of the net assets and significant components of the changes in net assets of the Master Trust are as follows:
| November 30, |
||
| 1999 |
1998
|
|
| Investments, at fair value: |
||
| Cash and cash equivalents |
$ 28,342
|
$ 17,876
|
| Common stock |
324,010
|
334,345
|
| Registered investment companies |
1,319,369
|
1,080,128
|
| Participant loans |
27,225
|
24,784
|
| |
|
|
| Total investments |
1,698,946
|
1,457,133
|
| Dividend and interest receivable |
121
|
45
|
| Transfers receivable from EIP Part 1 |
3,939
|
3,726
|
| Contributions receivable |
5,773
|
5,962
|
| Payable due to broker |
(11,332)
|
|
| Other receivable/(payable), net |
177
|
192
|
| |
|
|
| Net assets of Master Trust |
$1,697,624
|
$1,467,058
|
| |
|
|
| For the year ended
|
||
| 1999 |
1998
|
|
| Investment income: |
||
| Interest |
$ 2,856
|
$ 2,983
|
| Dividends |
7,597
|
7,772
|
| Net appreciation (depreciation) in fair value of: |
||
| Common stock |
(4,697)
|
10,987
|
| Registered investment companies |
202,270
|
111,962
|
| |
|
|
| Net investment income |
208,026
|
133,704
|
| Contributions to all plans |
80,300
|
94,162
|
| Withdrawals from all plans |
(127,000)
|
(73,232)
|
| Transfers from EIP Part 1 |
83,660
|
84,066
|
| Interfund transfers (to) from self-directed brokerage account, net |
(14,420)
|
(1,125)
|
| |
|
|
| Increase in Master Trust net assets |
230,566
|
237,575
|
| Master Trust net assets: |
||
| Beginning of year |
1,467,058
|
1,229,483
|
| |
|
|
| End of year |
$1,697,624
|
$1,467,058
|
| |
|
|
SCHEDULE I
CATERPILLAR INC.
EMPLOYEES' INVESTMENT PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT
PURPOSES AT END OF YEAR
NOVEMBER 30, 1999
| (a) |
(b) |
(c) |
(d) |
(e) |
| Identity of issue,
|
Description of investment, including
|
Cost |
Current
|
|
| * |
Caterpillar Inc. |
Common stock; 17,149,935 shares |
$506,593,058 |
$795,328,236 |
| |
|
|
||
| * | Northern Trust | Collective Short Term Investment Fund; 29,007 units | **
|
29,007
|
| |
||||
| * |
Northern Trust |
Collective Government Short-Term Investment Fund; 12,228,283 units |
**
|
12,228,283 |
| |
|
|||
| * |
Caterpillar Inc. |
401(k) Master Trust |
**
|
1,415,230,000 |
| |
||||
| |
|
|||
| AIM Global |
High Income Class B; 970.25 units |
8,286 |
||
| Accessor FDS Inc. |
Growth; 140.06 units |
4,637 |
||
| |
Small to Mid-Cap; 247.79 units |
6,782 |
||
| Acorn |
Foreign Forty; 368.19 units |
6,244 |
||
| Alliance |
Premier Growth Class B; 2,009.03 units |
68,407 |
||
| |
Technology Class A; 25.50 units |
2,842 |
||
| |
Technology Class B; 75.58 units |
7,991 |
||
| American Century |
Benham Target Mat TR 2005; 223.91 units |
16,175 |
||
| |
Benham Target Mat TR 2010; 360.10 units |
19,636 |
||
| |
Benham Target Mat TR 2015; 240.44 units |
10,233 |
||
| |
Benham Target Mat TR 2020; 1,394.66 units |
42,467 |
||
| |
Benham Target Mat TR 2025 INV; 3,096.09 units |
79,260 |
||
| |
Global Gold; 17,666.07 units |
95,043 |
||
| |
Income & Growth; 2,278.21 units |
73,381 |
||
| |
Global Natural Res; 1,483.68 units |
18,680 |
||
| |
20th Century Ultra; 1,207.56 units |
49,461 |
||
| |
20th Century Int'l GTH; 2,620.71 units |
34,122 |
||
| American Funds | Income Fund of America; 1,263.29 units | 21,021
|
||
| Investment Company of America; 2,014.76 units | 67,958
|
|||
| American Heritage |
American Heritage Fund; 9,899.07 units |
2,673 |
||
| ASAF |
Janus Small-Cap Growth Class B; 1,421.26 units |
28,439 |
||
| Amerindo |
Technology Class D; 127.44 units |
3,580 |
||
| Ameristock |
Mutual Fund; 291.59 units |
10,850 |
||
| Ariel |
Growth Class A; 133.19 units |
4,724 |
||
| |
Appreciation Class B; 138.35 units |
4,602 |
||
| Artisan |
International; 267.73 units |
6,278 |
||
| BT Investment |
International Equity; 173.24 units |
4,790 |
||
| Babson |
Value Income; 2,416.15 units |
111,095 |
||
| Baron |
Asset; 7,983.25 units |
438,360 |
||
| |
Growth & Inc.; 954.82 units |
28,215 |
||
| |
Small Cap Fund; 2,491.09 units |
45,734 |
||
| Berger |
Small Cap Value Retail; 1,259.71 units |
26,870 |
||
| |
Small Company Growth Retail; 8,796.76 units |
54,452 |
||
| |
New Generation Retail; 7,622.11 units |
257,399 |
||
| |
Balanced Retail; 430.14 units |
7,958 |
||
| |
Select Retail; 290.86 units |
6,957 |
||
| Brandywine |
Blue; 3,411.18 units |
118,197 |
||
| Bridgeway |
Microcap Limited; 1,628.39 units |
10,829 |
||
| Clipper |
Clipper Fund Incorporated; 142.78 units |
10,537 |
||
| Cohen & Steers |
Realty Shares Inc; 1,078.11 units |
37,863 |
||
| Dodge & Cox |
Balance; 370.94 units |
25,473 |
||
| Dresdner |
RCM Global Technology Fund; 231.41 units |
10,863 |
||
| (Continued)
|
| (a) |
(b) |
(c) |
(d) |
(e) |
| Identity of issue,
|
Description of investment, including
|
Cost |
Current
|
|
| Dreyfus |
Premier Worldwide Growth; 368.79 units |
13,107 |
||
| |
Aggressive Value Fund; 180.05 units |
4,100 |
||
| |
Small Company Value Fund; 352.80 units |
7,857 |
||
| |
Premier Tech Growth Class C; 871.59 units |
37,225 |
||
| |
Premier Tech Growth Class B; 84.06 units |
3,594 |
||
| |
Technology Growth Fund; 8,820.38 units |
378,747 |
||
| |
S&P 500 Index Fund; 2,191.10 units |
90,580 |
||
| |
Emerging Markets; 1,406.30 units |
21,165 |
||
| |
New Leaders; 119.46 units |
6,179 |
||
| Excelsior |
Income Business & Indl Rest; 156.67 units |
4,445 |
||
| FBR |
Small Cap Growth Fund/Value Fund; 165.21 units |
2,857 |
||
| Fidelity |
Worldwide; 151.88 units |
3,001 |
||
| |
Japan Small Companies; 4,933.27 units |
117,609 |
||
| |
Capital & Income; 10,608.56 units |
102,373 |
||
| |
Stock Selector; 7,530.06 units |
248,191 |
||
| |
Asset Manager Growth; 681.14 units |
13,670 |
||
| |
Contra Fund; 2,576.00 units |
166,487 |
||
| |
Utilities; 3,534.55 units |
93,065 |
||
| |
Equity Income; 915.36 units |
52,688 |
||
| |
Real Estate Investment; 1,314.20 units |
18,596 |
||
| |
Equity Income II; 1,266.62 units |
38,429 |
||
| |
Diversified International; 2,197.98 units |
51,367 |
||
| |
Int'l Value; 835.95 units |
15,398 |
||
| |
Southeast Asia; 1,150.31 units |
16,288 |
||
| |
Emerging Markets; 166.11 units |
1,688 |
||
| |
Fidelity Fund; 1,490.05 units |
57,427 |
||
| |
Magellan; 84.02 units |
11,090 |
||
| |
Growth Company; 840.09 units |
62,654 |
||
| |
Emerging Growth; 2,031.37 units |
107,785 |
||
| |
Overseas; 69.35 units |
3,189 |
||
| |
Pacific Basin; 1,141.85 units |
29,026 |
||
| |
Europe; 130.36 units |
4,662 |
||
| |
Low Priced Stock; 204.29 units |
4,490 |
||
| |
OTC Port; 302.24 units |
17,370 |
||
| |
Growth & Income; 1,462.79 units |
66,893 |
||
| |
Blue Chip Growth; 246.97 units |
13,712 |
||
| |
Dividend Growth; 10,611.44 units |
302,107 |
||
| |
Value; 1,232.51 units |
59,839 |
||
| Firsthand Technology |
Value; 910.75 units |
67,905 |
||
| |
Leaders; 1,104.12 units |
40,422 |
||
| |
Innovator; 4,437.10 units |
175,266 |
||
| Firsthand |
E-Commerce; 6,099.05 units |
73,738 |
||
| |
Communications; 1,369.81 units |
15,520 |
||
| Flag Investors |
Telephone Inc Class A; 2,693.42 units |
118,376 |
||
| Founders |
Worldwide Growth; 1,862.44 units |
52,502 |
||
| Franklin |
CA Growth Class I; 94.70 units |
3,681 |
||
| |
Global Health Care; 49.95 units |
767 |
||
| (Continued)
|
| (a)
|
(b)
|
(c)
|
(d)
|
(e)
|
| Identity of issue,
|
Description of investment,
including
|
Cost
|
Current
|
|
| Fremont |
US Micro Capital; 222.27 units |
7,310 |
||
| |
Real Estate Securities; 1,219.42 units |
9,304 |
||
| Gabelli |
Growth Shares Ben Int; 1,773.13 units |
82,344 |
||
| |
ABC Fund; 97.37 units |
1,013 |
||
| |
Global Telecommunications Fund; 869.19 units |
23,468 |
||
| |
Global Opportunity Fund; 2,201.03 units |
35,547 |
||
| |
GLBL Inter-Active Couch Potato; 2,967.75 units |
90,695 |
||
| |
Value FD Inc; 495.79 units |
9,861 |
||
| GAM |
International Class A; 375.88 units |
10,510 |
||
| Govett |
Smaller Companies Class A; 57.62 units |
1,440 |
||
| Growth |
Fund of America; 2,553.67 units |
74,005 |
||
| Guinness Flight |
China & Hong Kong; 260.54 units |
4,364 |
||
| |
Asia Small Cap; 1,096.05 units |
9,853 |
||
| |
Mainland China Fund; 21.43 units |
243 |
||
| |
Wired Index; 1,222.53 units |
23,852 |
||
| Harbor |
Bond; 8,716.39 units |
94,747 |
||
| |
Growth; 299.04 units |
6,181 |
||
| |
Capital Appreciation; 5,433.36 units |
266,561 |
||
| Heartland Group |
Value Plus; 2,778.47 units |
36,648 |
||
| |
MidCap Value; 394.63 units |
3,607 |
||
| Hotchkis & Wiley |
International; 3,204.34 units |
87,543 |
||
| IAI |
Bond; 1,642.94 units |
14,162 |
||
| IPS |
Millennium Fund; 361.88 units |
20,240 |
||
| Invesco |
Endeavor N/C; 1,434.11 units |
29,571 |
||
| |
Energy N/C; 6,093.87 units |
82,816 |
||
| |
Gold N/C; 22,486.71 units |
39,127 |
||
| |
Health Sciences N/C; 292.64 units |
15,797 |
||
| |
Technology N/C; 529.06 units |
34,029 |
||
| |
Financial Services N/C; 770.20 units |
20,149 |
||
| |
Worldwide Communications; 3,444.13 units |
144,378 |
||
| |
Internat'l European; 571.95 units |
11,605 |
||
| |
Internat'l Pacific Basin #54; 1,456.31 units |
16,515 |
||
| Janus |
Janus Fund; 5,356.79 units |
238,592 |
||
| |
Inv't Growth & Income; 8,160.89 units |
318,765 |
||
| |
Inv't Worldwide; 18,866.51 units |
1,272,357 |
||
| |
Inv't Twenty; 15,147.09 units |
1,137,244 |
||
| |
Flexible Income; 1,466.48 units |
13,726 |
||
| |
Global Technology; 58,149.85 units |
1,430,487 |
||
| |
Global Life Sciences; 1,658.06 units |
21,472 |
||
| |
Special Situations; 3,763.69 units |
90,931 |
||
| |
Inv't Equity Income; 9,124.56 units |
212,511 |
||
| |
Olympus; 26,402.24 units |
1,213,447 |
||
| |
High Yield Bond; 1,367.08 units |
13,848 |
||
|
|
Enterprise; 6,334.67 units |
411,184 |
||
| |
Inv't Overseas; 8,024.19 units |
248,028 |
||
| |
Inv't Mercury; 22,743.03 units |
899,032 |
||
| |
Inv't Balanced; 7,630.60 units |
169,628 |
||
| (Continued)
|
| (a)
|
(b)
|
(c)
|
(d)
|
(e)
|
| Identity of issue,
|
Description of investment,
including
|
Cost
|
Current
|
|
| Japan |
Japan Fund; 255.57 units |
4,304 |
||
| John Hancock |
Finc'l Industries Class B; 473.65 units |
7,285 |
||
| Special Equity Class B; 571.43 units |
15,920 |
|||
| Sovern Global Tech Class B; 126.94 units |
8,150 |
|||
| Kaufmann |
Kaufmann Fund; 9,981.85 units |
49,809 |
||
| Kinetics | The Internet Fund; 3,837.73 units | 144,969
|
||
| Lexington |
Troika Dialog Russia Income; 700.30 units |
3,123 |
||
| Worldwide Emerging Mkts; 625.19 units |
7,115 |
|||
| Linder |
Bulwark; 920.95 units |
5,728 |
||
| Invts Dividend; 1,060.76 units |
24,302 |
|||
| Longleaf |
Realty; 141.74 units |
1,877 |
||
| Loomis Sayles |
Bond; 3,225.52 units |
37,352 |
||
| MFS |
Emerging Growth Class B; 279.11 units |
14,904 |
||
| Managers |
FDS Special Equity; 81.79 units |
6,599 |
||
| FDS Int'l Equity; 301.99 units |
17,104 |
|||
| Marsico |
Focus; 10,819.73 units |
215,745 |
||
| Masters Select |
International; 466.98 units |
7,462 |
||
| Matthews |
Intl FDS Pac Tiger FD; 3,992.62 units |
46,554 |
||
| Intl FDS Korea FD; 4,422.01 units |
36,039 |
|||
| Midas |
Midas Fund; 9,450.17 units |
12,191 |
||
| Investors Ltd. N/C; 1,706.22 units |
4,402 |
|||
| Montag & Caldwell |
Growth Fund; 2,231.11 units |
77,754 |
||
| Montgomery |
Emerging Markets; 86.51 units |
954 |
||
| Emerging Asia; 924.92 units |
10,295 |
|||
| Global Communication; 424.85 units |
15,205 |
|||
| Growth; 1,956.75 units |
44,673 |
|||
| International Growth; 601.13 units |
12,774 |
|||
| Munder Net |
Net Class C; 68.76 units |
3,859 |
||
| Net Class B; 353.06 units |
19,807 |
|||
| Net Class A; 1,510.68 units |
85,656 |
|||
| Mutual Series |
Shares Class Z; 280.40 units |
6,060 |
||
| Qualified Inc Class Z; 2,851.94 units |
51,335 |
|||
| Beacon Class Z; 1,669.69 units |
24,461 |
|||
| Discovery Class Z; 6,245.72 units |
126,476 |
|||
| European Class Z; 1,735.61 units |
27,718 |
|||
| Neuberger & Berman |
Guardian Trust; 540.48 units |
9,139 |
||
| Focus Trust Frm; 103.28 units |
2,747 |
|||
| International Fund; 1,310.68 units |
28,520 |
|||
| Regency Fund; 690.34 units |
6,793 |
|||
| New Perspective; 2,571.75 units |
74,864 |
|||
| Northeast Investors |
Trust CTFS Ben INT; 2,212.17 units |
21,436 |
||
| Oak |
Value Fund; 605.86 units |
15,522 |
||
| Oakmark |
Oakmark Fund; 2,708.12 units |
73,092 |
||
| International; 1,289.20 units |
17,572 |
|||
| Small Cap; 3,607.45 units |
48,015 |
|||
| Balanced; 573.69 units |
8,072 |
|||
| Internat'l Small Cap; 870.76 units |
10,040 |
|||
| Select; 5,026.20 units |
88,461 |
| (a)
|
(b)
|
(c)
|
(d)
|
(e)
|
| Identity of issue,
|
Description of investment, including
|
Cost
|
Current
|
|
| Oppenheimer |
Strategic Inc Class C; 4,131.36 units |
17,889 |
||
| Global Growth & Income; 420.52 units |
11,026 |
|||
| Midcap Class C; 217.39 units |
4,837 |
|||
| Payden & Rygel |
Growth & Income Class A; 5,950.53 units |
97,113 |
||
| PBHG |
Growth; 5,010.55 units |
189,148 |
||
| Emerging Growth; 443.29 units |
12,758 |
|||
| Large Cap Growth; 401.43 units |
12,320 |
|||
| Select Equity; 2,706.28 units |
116,370 |
|||
| New Oppties; 338.33 units |
15,847 |
|||
| Tech & Communication; 5,789.61 units |
288,091 |
|||
| Large Cap 20; 1,211.94 units |
40,237 |
|||
| Core Growth; 683.52 units |
13,759 |
|||
| Pilgrim |
International Small Cap Growth Q; 506.91 units |
18,406 |
||
| PIMCO |
Long Term US Gov't; 16,828.24 units |
160,710 |
||
| Pin Oak |
Aggressive Stock; 2,413.78 units |
111,058 |
||
| Putnam |
Growth Opportunities Class A; 2,827.03 units |
72,117 |
||
| OTC & Emerging Growth Class A; 104.31 units |
3,101 |
|||
| Red Oak |
Technology Select; 1,688.05 units |
34,858 |
||
| Renaissance |
IPO Plus Aftermarket; 188.40 units |
4,981 |
||
| Reynolds |
Blue Chip Growth; 700.24 units |
44,479 |
||
| RS |
Emerging Growth N/C; 10,423.76 units |
501,592 |
||
| Value Plus and Growth N/C; 1,150.35 units |
32,474 |
|||
| Mid Cap Oppties N/C; 324.15 units |
4,392 |
|||
| Global Natural Resources N/C; 342.20 units |
2,902 |
|||
| Diversified Growth N/C; 541.91 units |
14,480 |
|||
| Microcap Growth N/C; 690.15 units |
12,933 |
|||
| RS Funds | The Information Age N/C; 297.62 units | 8,557
|
||
| Rydex |
Nova Fund; 1,992.27 units |
75,666 |
||
| URSA Fund; 3,127.22 units |
25,737 |
|||
| OTC Fund; 10,423.25 units |
689,811 |
|||
| Juno Fund; 1,361.98 units |
13,034 |
|||
| Electronics Inv Class; 1,800.66 units |
41,776 |
|||
| Biotechnology Inv Class; 1.43 units |
26 |
|||
| Safeco |
Equity; 1,083.86 units |
27,162 |
||
| Growth; 390.48 units |
8,224 |
|||
| Scudder |
Mutual Income Gold; 733.82 units |
4,858 |
||
| S&P 500 Index; 1,682.27 units |
31,223 |
|||
| Latin America; 73.26 units |
1,653 |
|||
| Greater Europe Growth; 3,187.53 units |
97,698 |
|||
| Technology Fund; 49.41 units |
1,606 |
|||
| Select |
Energy; 459.50 units |
10,656 |
||
| Technology; 1,508.63 units |
193,255 |
|||
| Health Care; 1,631.56 units |
216,264 |
|||
| Precious Metals; 996.23 units |
10,211 |
|||
| Utilities Growth; 92.00 units |
6,403 |
|||
| Natural Gas; 398.30 units |
5,604 |
|||
| Insurance; 46.45 units |
1,741 |
| (a)
|
(b)
|
(c)
|
(d)
|
(e)
|
| Identity of issue,
|
Description of investment, including
|
Cost
|
Current
|
|
| Select |
Develop Communications; 1,423.93 units |
71,923 |
||
| Financial Services; 40.26 units |
4,037 |
|||
| Regional Banks; 658.46 units |
25,805 |
|||
| Leisure; 30.97 units |
2,755 |
|||
| Retailing; 2,168.66 units |
143,435 |
|||
| Energy Service; 2,554.62 units |
56,891 |
|||
| Biotechnology; 1,065.82 units |
60,837 |
|||
| American Gold; 298.31 units |
4,257 |
|||
| Money Market; 37,339.57 units |
37,340 |
|||
| Software & Computer; 44.44 units |
3,542 |
|||
| Telecomm Port; 427.12 units |
37,702 |
|||
| Brokerage & Investment Mgmt; 971.37 units |
45,227 |
|||
| Electronics; 5,732.60 units |
468,697 |
|||
| Computers; 2,011.77 units |
198,662 |
|||
| Seligman |
Communications & Info Class B; 220.38 units |
8,213 |
||
| Spartan |
U.S. Equity Index; 1,113.80 units |
55,144 |
||
| Total Market Index; 443.62 units |
15,922 |
|||
| Market Index; 24.64 units |
2,373 |
|||
| High Income; 3,522.94 units |
42,416 |
|||
| Sound Shore |
Sound Shore Fund Inc; 326.26 units |
9,400 |
||
| Spectra |
Spectra Fund Inc; 332.59 units |
3,968 |
||
| SSGA |
Small Cap Equity; 219.70 units |
4,100 |
||
| Money Market Fund; 4,789,980.05 units |
4,789,980 |
|||
| Emerging Markets; 1,073.21 units |
12,106 |
|||
| S&P 500 Index; 19,807.11 units |
478,738 |
|||
| Stein Roe |
Income Trust; 1,540.04 units |
14,245 |
||
| Investment Trust Young Inv; 377.26 units |
11,906 |
|||
| Investment Trust Cap Oppty; 838.03 units |
28,417 |
|||
| Strong |
Corporate Bond Income; 9,193.75 units |
97,178 |
||
| Income High Yield Bond; 1,334.52 units |
14,266 |
|||
| Growth; 3,193.17 units |
99,595 |
|||
| Index 500; 1,777.25 units |
31,209 |
|||
| Growth 20; 374.67 units |
9,322 |
|||
| Enterprise; 2,216.84 units |
74,043 |
|||
| Growth & Income; 1,769.04 units |
46,614 |
|||
| Blue Chip 100; 2,621.56 units |
49,495 |
|||
| Schafer Value; 124.86 units |
6,118 |
|||
| Asia Pacific; 5,045.69 units |
55,553 |
|||
| Gov't Securities Income; 3,939.93 units |
40,069 |
|||
| Templeton |
Developing Markets Trust SH Ben INT II; 3,222.17 units |
43,209 |
||
| The Contrarian |
The Contrarian Fund N/C; 2,146.42 units |
19,468 |
||
| Third Avenue |
Value Fund; 1,589.84 units |
54,293 |
||
| Torray |
Torray Fund; 1,711.10 units |
71,952 |
||
| T Rowe Price |
Dividend Growth; 956.48 units |
20,249 |
||
| Media & Telecommunications; 1,166.78 units |
42,436 |
|||
| Equity Income; 4,943.75 units |
133,086 |
|||
| (Continued)
|
| (a) |
(b) |
(c) |
(d) |
(e) |
| |
Identity of issue,
|
Description of investment, including
|
Cost |
Current
|
| T Rowe Price |
Blue Chip Growth Inc; 712.97 units |
24,576 |
||
| Growth & Income; 126.49 units |
3,365 |
|||
| Mid Cap Growth; 460.74 units |
17,490 |
|||
| New Era; 3,600.94 units |
83,290 |
|||
| International Stock; 2,018.88 units |
36,057 |
|||
| European Stock; 5,477.19 units |
128,221 |
|||
| Int'l New Asia; 4,892.73 units |
41,882 |
|||
| Science & Technology; 2,470.44 units |
157,170 |
|||
| Tweedy Browne |
Global Value Fund; 12,035.03 units |
250,088 |
||
| Amern Value Fund; 7,330.90 units |
171,616 |
|||
| UAM FMA |
Small Company Portfolio; 33.67 units |
459 |
||
| Ultra |
Bear Pro Fund Service Shares; 193.42 units |
4,716 |
||
| OTC Pro Fund Service Shares; 292.39 units |
18,651 |
|||
| OTC Pro Fund Investors Shares; 6,658.36 units |
430,796 |
|||
| US |
World Gold; 10,437.60 units |
86,423 |
||
| Gold Shares; 14,348.43 units |
52,802 |
|||
| Value Line |
Aggressive Income; 1,861.04 units |
13,176 |
||
| Asset Allocation; 7,360.16 units |
150,000 |
|||
| Vanguard |
Life Strategy Growth Port; 413.83 units |
8,579 |
||
| US Growth Portfolio; 2,278.36 units |
97,537 |
|||
| Int'l Growth Portfolio; 4,304.22 units |
92,024 |
|||
| Growth & Income; 3,682.88 units |
132,326 |
|||
| Equity Income; 1,576.63 units |
38,895 |
|||
| Admiral Sht Term US Treasury Fund; 7,094.14 units |
69,927 |
|||
| Admiral Inter TM US Treasury Fund; 5,056.93 units |
50,822 |
|||
| Admiral Long Trm US Treasury Fund; 21,794.67 units |
221,434 |
|||
| Primecap; 3,391.08 units |
207,738 |
|||
| Bond Index Total Market; 27.72 units |
268 |
|||
| Windsor Income; 2,247.68 units |
38,413 |
|||
| Windsor II Portfolio; 6,466.88 units |
184,112 |
|||
| Asset Allocation Income; 5,191.06 units |
129,361 |
|||
| Fixed Inc Sec L/T Portfolio; 8,794.30 units |
72,377 |
|||
| GNMA Fixed Income Security Fund; 51,626.14 units |
514,196 |
|||
| Index Trust S&P 500 Port; 12,768.67 units |
1,642,052 |
|||
| Total Stock Market; 37,798.72 units |
1,176,674 |
|||
| Value Index; 6,357.22 units |
148,759 |
|||
| Growth Index; 18,847.26 units |
706,772 |
|||
| Van Kampen |
Amer Capt Growth Class B; 311.65 units |
8,271 |
||
| Van Wagoner |
Income Micro-Cap; 6,001.05 units |
182,432 |
||
| Income Emerging Growth; 19,700.41 units |
734,038 |
|||
| Income Mid-Cap; 5,748.10 units |
142,093 |
|||
| Income Post Venture; 7,617.67 units |
263,800 |
|||
| Technology; 4,397.75 units |
230,794 |
|||
| Warburg Pincus |
Capital Appreciation; 1,892.99 units |
52,019 |
||
| Emerging Growth; 246.61 units |
11,961 |
|||
| International Equity; 2,162.99 units |
52,215 |
|||
| (Continued)
|
| (a) |
(b) |
(c) |
(d) |
(e) |
| |
Identity of issue,
|
Description of investment, including
|
Cost |
Current
|
| Warburg Pincus |
Emerging Markets; 214.31 units |
2,310 |
||
| Post Venture Capital; 156.37 units |
4,177 |
|||
| Japan Growth; 875.91 units |
25,682 |
|||
| Japan OTC; 6,171.49 units |
144,660 |
|||
| Health Sciences; 503.36 units |
7,787 |
|||
| Global Telecomm; 660.51 units |
38,653 |
|||
| Weitz |
Value; 3,860.74 units |
131,304 |
||
| Hickory; 1,039.26 units |
39,367 |
|||
| White Oak |
Growth Stock; 2,937.72 units |
164,836 |
||
| Yacktman |
Yacktman Fund; 325.73 units |
2,938 |
||
| |
||||
| **
|
35,565,099 |
|||
| |
||||
| Total investments | $2,258,380,625
|
|||
| |
** - Cost information is not applicable for participant directed investments
SCHEDULE II
CATERPILLAR INC.
EMPLOYEES' INVESTMENT PLAN
ITEM 27d - SCHEDULE OF REPORTABLE (5%) TRANSACTIONS
FOR THE YEAR ENDED NOVEMBER 30, 1999
| (a) |
(b) |
(c) |
(d) |
(e) |
(f) |
(g) |
(h) |
(i) |
| Identity of
|
Description of assets |
Purchase
|
Selling
|
Lease
|
Expense
|
Cost
|
Current value
|
Net gain
|
| Caterpillar Inc. |
Common stock: |
|||||||
| Series of 63 purchases |
$116,806,804 |
$ |
$ |
$103,063 |
$116,806,804 |
$116,703,741 |
$ |
|
| One sale | |
6,822
|
|
7
|
3,655
|
6,829
|
3,167
|
|
| |
|
|
|
|
|
|
SCHEDULE III
Caterpillar Inc.
Employees' Investment Plan
FORM 5500 ITEM 27f-SCHEDULE OF NONEXEMPT TRANSACTIONS
FOR THE YEAR ENDED NOVEMBER 30, 1999
| a
|
b
|
c
|
d
|
e
|
f
|
g
|
h
|
i
|
j
|
| Identity of party involved
|
Relationship to Plan employer or other
party-in-interest
|
Description of transactions including maturity date, rate of
interest, collateral, par or maturity value)
|
Purchase price
|
Selling price
|
Lease rental
|
Expenses incurred in connection with transaction
|
Cost of asset
|
Current value of asset
|
Net gain or (loss) on each transaction
|
| Caterpillar Inc.
|
Employer
|
Failure to remit employee contributions to the trustee on a timely
basis.(1)
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
| (1) | As the result of a clerical error with regard to payroll deferrals for certain U.S. expatriate employees working overseas, contributions in the amount of $2,660.71 were not made to the trust under the Plan for the payroll period ended March 15, 1999 until December 9, 1999. The Company is currently in the process of calculating the lost earnings on these contributions, as well as the lost earnings on these lost earnings, for the period in which the contributions were not in the trust. Once calculated, the Company will contribute this amount to the trust and allocate the contribution among the applicable participants' accounts. |
EXHIBIT A
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 26, 2000 relating to the financial statements of the Caterpillar Inc. Employees' Investment Plan, which appears in this Form 11-K.
PricewaterhouseCoopers LLP
Peoria, Illinois
May 26, 2000
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, 1998 |
OR
| [ ] |
TRANSITION REPORT PURSUANT TO SECTION 15(d) |
| OF THE SECURITIES EXCHANGE ACT OF 1934 [No Fee Required] |
|
| For the transition period from _____ to _____ |
Commission File Number 1-768
SAVINGS AND INVESTMENT
PLAN
(Full title of the Plan)
CATERPILLAR INC.
(Name of issuer of the securities held
pursuant to the Plan)
100 NE ADAMS STREET, PEORIA, ILLINOIS
61629
(Address of principal executive offices)
REQUIRED INFORMATION
Item 1.
The audited statement of net assets available for plan benefits as of the end of the latest two fiscal years of the Plan is attached hereto as Exhibit A.
Item 2.
The audited statement of changes in net assets available for plan benefits for each of the latest two fiscal years of the Plan is attached hereto as Exhibit B.
Item 3.
The statements required by Items 1 and 2 have been prepared in accordance with the applicable financial reporting requirements of ERISA.
Item 4.
The Consent of Independent Accountants is attached hereto as Exhibit B.
Report of Independent Accountants
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 benefits and the related statements of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the Solar Turbines Incorporated Savings and Investment Plan (the Plan) at December 31, 1999 and 1998, and the changes in net assets available for plan benefits for the years then ended in conformity with accounting principles generally accepted in the United States. 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 auditing standards generally accepted in the United States, 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 conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets held for investment purposes is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan's management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Peoria, Illinois
May 26, 2000
| 1999
|
1998
|
||
| |
|
||
|---|---|---|---|
| Investments |
$32,492
|
$27,720
|
|
| |
|
||
| Net assets available for benefits | $32,492
|
$27,720
|
|
| |
|
(The accompanying notes are an integral part of the financial statements.)
SOLAR TURBINES INCORPORATED
SAVINGS AND INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR
BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1999 AND 1998
(Dollars in 000's)
| 1999
|
1998
|
||
| |
|
||
| Participant contributions
|
$2,880 | $3,891 | |
| |
|
||
| Investment income:
|
|||
| Net appreciation in fair value of registered investment companies | 532 | 19 | |
| Plan interest in net investment income of Master Trust | 4,343 | 2,693 | |
| |
|
||
| Net investment income | 4,875 | 2,712 | |
| |
|
||
| Withdrawals | (1,671) | (1,249) | |
| Transfers (to)/from other plans, net | (1,312) | (564) | |
| |
|
||
| Withdrawals and transfers, net | (2,983) | (1,813) | |
| |
|
||
| Increase in net assets available for benefits | 4,772 | 4,790 | |
| Net assets available for benefits: | |||
| Beginning of year | 27,720 | 22,930 | |
| |
|
||
| End of year | $32,492
|
$27,720 | |
| |
|
||
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 contributory defined contribution plan established by Solar Turbines Incorporated (the Company), a 100%-owned subsidiary of Caterpillar Inc., to enable eligible employees of the Company and its subsidiaries (the employers) to accumulate funds.
Participation
Hourly employees of the employers 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 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 vested account.
Loan provisions
The Plan provides for participant loans against eligible participants' 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 percent, as determined at the loan origination. Repayments, including interest, are made through after-tax payroll deductions and are credited to the individual participant's account balance.
Contributions
Participant contributions are made through a pretax compensation deferral as elected by the participants and are contributed to the Plan by the employer. For 1999 and 1998, the compensation deferral was limited to (a) the greater of $6,000 or 4% of the participant's compensation (limited by the Internal Revenue Code to $10,000 in 1999) for participants earning in excess of $80,000 or (b) $10,000 for participants earning less than $80,000.
Investment programs
Participants may elect to have their contributions invested in any combination of the following ten investment fund options at December 31, 1999:
In addition, a self-directed fund option allows participants to invest in various other mutual funds outside of the Standard Plan options. State Street Bank serves as custodian for funds invested through this self-directed fund option.
Vesting and distribution provisions
Participants are fully vested in their participant contributions and earnings thereon. Upon termination of employment for any reason, including death, retirement or total and permanent disability, or upon Plan termination, the balance in participants' accounts are distributable.
Administration
The Plan is administered by the Vice President - Human Services Division of Caterpillar Inc. who is responsible for non-financial matters, and the Benefits Funds Committee of Caterpillar Inc. which 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.
Plan termination
Although it has not expressed any intent to do so, the Company has the right under the Plan at any time to terminate the Plan subject to provisions of ERISA. In the event of Plan termination, any unallocated assets of the plan shall be allocated to participant accounts and distributed in such a manner as the company may determine.Federal income tax status
The Internal Revenue Service has determined and informed the Company by letter dated April 13, 1999, 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 determination letter; however, the Plan administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. Therefore, they believe that the Plan is qualified and the related trust is tax-exempt as of the financial statement date.
Risks and uncertainties
The Plan provides for various investment options in any combination of stocks, bonds, fixed income securities, mutual funds and other investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities could occur in the near term and that such changes could materially affect participants' account balances and the amounts reported in the statement of net assets available for benefits.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
New accounting standards
In September 1999, the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants issued Statement of Position (SOP) 99-3, Accounting for and Reporting of Certain Defined Contribution Benefit Plan Investments and Other Disclosure Matters (SOP 99-3). This SOP simplifies the disclosure of certain investment information of defined contribution plans. SOP 99-3 is effective for financial statements for plan years ending after December 15, 1999, with earlier application encouraged. The Plan has elected to adopt the provisions of this SOP for its Plan year ended December 31, 1999. The primary impact on the 1999 financial statements is the elimination of previously provided information by investment fund option.
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.
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 - MASTER TRUST:
Under a Master Trust agreement with The Northern Trust Company (the Trustee), Part 2 of the Caterpillar Inc. Employees' Investment Plan (EIP), 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 options available to the participants through the Preferred Group of Mutual Funds are described in Note 1.
CIML manages the Preferred Small Cap Fund and the Preferred Short-term Government Fund. All other funds are managed by unrelated investment managers. Caterpillar Securities, Inc., a wholly-owned subsidiary of CIML, distributes the shares of the mutual funds to the Master Trust.
The percentage of the Plan's participation in the Master Trust was determined based on the December 31, 1999 and 1998 market values of net assets, as accumulated by the Trustee for the investment funds of each plan. At December 31, 1999 and 1998, the Plan's pro rata interest in the quoted market values of net assets of the Master Trust was 1.78% and 1.82%, respectively.
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. Details of the net assets and significant components of the changes in net assets of the Master Trust are as follows:
| December 31, | |||
| |
|||
| 1999 | 1998 | ||
| |
|
||
| Investments, at fair value: | |||
| Cash and cash equivalents | $16,061 | $12,191 | |
| Common stock | 330,694 | 343,517 | |
| Registered investment companies | 1,394,423 | 1,115,716 | |
| Participant loans | 27,405 | 24,686 | |
| |
|
||
| Total investments | 1,768,583 | 1,496,110 | |
| Dividend and interest receivable | 105 | 93 | |
| Transfers receivable from EIP Part 1 | 2,802 | 2,525 | |
| Contributions receivable | 6,976 | 6,648 | |
| Receivable due from broker | 7,700 | ||
| Other receivable/(payable), net | 200 | 259 | |
| |
|
||
| Master Trust net assets | $1,786,366 | $1,505,635 | |
| |
|
||
| For the year ended
December 31, |
|||
| |
|||
| 1999 | 1998 | ||
| |
|
||
| Investment income: | |||
| Interest | $ 2,917 | $ 2,946 | |
| Dividends | 7,597 | 7,756 | |
| Net appreciation (depreciation) in fair value of: | |||
| Common stock | 22,897 | (15,546) | |
| Registered investment companies | 228,248 | 165,523 | |
| |
|
||
| Net investment income | 261,659 | 160,679 | |
| Contributions to all plans | 80,394 | 94,843 | |
| Withdrawals from all plans | (128,500) | (76,445) | |
| Transfers from EIP Part 1 | 84,107 | 84,143 | |
| Interfund transfers (to) from self-directed brokerage account, net | (16,764) | (1,437) | |
| |
|
||
| Increase in Master Trust net assets | 280,896 | 261,783 | |
| Master Trust net assets: | |||
| Beginning of year | 1,505,635 | 1,243,852 | |
| |
|
||
| End of year | $1,786,531 | $1,505,635 | |
| |
|
||
SCHEDULE I
SOLAR TURBINES INCORPORATED
SAVINGS AND INVESTMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1999
| (a) |
(b) |
(c) |
(d) |
(e) |
|||
| Identity of issue,
|
Description of investment, including
|
Cost
|
Current
Value |
||||
| * |
Caterpillar Inc. |
401(k) Master Trust |
**
|
$31,977,000 |
|||
| |
|||||||
| Babson |
Value Income; 100.16 units |
4,432 |
|||||
| Baron |
Asset; 90.13 units |
5,297 |
|||||
| Fidelity |
Europe; 138.24 units |
5,180 |
|||||
| Firsthand |
Technology Value; 1,273.94 units |
115,317 |
|||||
| Janus |
Global Technology; 3,681.66 units |
113,874 |
|||||
| Inv't Worldwide; 112.51 units |
8,599 |
||||||
| Olympus; 139.89 units |
7,450 |
||||||
| Special Situations; 337.36 units |
7,776 |
||||||
| Oakmark |
Oakmark Fund; 159.78 units |
4,346 |
|||||
| PBHG |
Growth; 366.95 units |
17,386 |
|||||
| Rydex |
OTC Fund; 1,868.82 units |
153,916 |
|||||
| SSGA |
Money Market Fund; 70,977.50 units |
70,978 |
|||||
| |
|||||||
| **
|
514,551
|
||||||
| |
|||||||
| Total investments | |
$32,491,561 |
|||||
| |
**--Cost informations not applicable for participant directed investments.
EXHIBIT B
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 26, 2000 relating to the financial statements of the
Solar Turbines Incorporated Savings and Investment Plan, which appears in
this Form 11-K.
PricewaterhouseCoopers LLP
Peoria, Illinois
May 26, 2000
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, 1998 |
OR
| [ ] |
TRANSITION REPORT PURSUANT TO SECTION 15(d) |
| OF THE SECURITIES EXCHANGE ACT OF 1934 [No Fee Required] |
|
| For the transition period from _____ to _____ |
Commission File Number 1-768
TAX DEFERRED SAVINGS PLAN
(Full title of the Plan)
CATERPILLAR INC.
(Name of issuer of the securities held
pursuant to the Plan)
100 NE ADAMS STREET, PEORIA, ILLINOIS
61629
(Address of principal executive offices)
REQUIRED INFORMATION
Item 1.
The audited statement of net assets available for plan benefits as of the end of the latest two fiscal years of the Plan is attached hereto as Exhibit A.
Item 2.
The audited statement of changes in net assets available for plan benefits for each of the latest two fiscal years of the Plan is attached hereto as Exhibit B.
Item 3.
The statements required by Items 1 and 2 have been prepared in accordance with the applicable financial reporting requirements of ERISA.
Item 4.
The Consent of Independent Accountants is attached hereto as Exhibit C.
Report of Independent Accountants
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 benefits and the related statements of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the Caterpillar Inc. Tax Deferred Savings Plan (the Plan) at December 31, 1999 and 1998, and the changes in net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States. 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 auditing standards generally accepted in the United States, 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 conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets held for investment purposes is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan's management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Peoria, Illinois
May 26, 2000
|
1999 |
1998
|
||
| |
|
||
| Investments | $268,441
|
$228,451
|
|
| |
|
||
| Net assets available for plan benefits | $268,441
|
$228,451
|
|
| |
|
(The accompanying notes are an integral part of the financial statements.)
CATERPILLAR INC.
TAX DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1999 AND 1998
(Dollars in 000's)
| 1999 |
1998
|
|
| Participant contributions |
$ 18,404
|
$ 20,268
|
| |
|
|
| Investment income: |
||
| Net appreciation in fair value of registered investment companies |
764
|
140
|
| Plan interest in net investment income of Master Trust |
39,451
|
26,891
|
| |
|
|
| Net investment income |
40,215
|
27,031
|
| |
|
|
| Withdrawals |
(18,113)
|
(12,866)
|
| Transfers (to)/from other plans, net |
(516)
|
(1,575)
|
| |
|
|
| Withdrawals and transfers, net |
(18,629)
|
(14,441)
|
| |
|
|
| Increase in net assets available for benefits |
39,990
|
32,858
|
| |
|
|
| Net assets available for benefits: |
||
| Beginning of year |
228,451
|
195,593
|
| |
|
|
| End of year |
$ 268,441
|
$ 228,451
|
| |
|
(The accompanying notes are an integral part of the financial statements.)
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 contributory 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 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 vested account.
Loan provisions
The Plan provides for participant loans against eligible participants' 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 percent, as determined at the time of loan origination. Repayments, including interest, are made through after-tax payroll deductions and are credited to the individual participant's account balance.
Contributions
Participant contributions are made through a pretax compensation deferral as elected by the participants and are contributed to the Plan by the employer. For 1999 and 1998, the compensation deferral was limited to (a) the greater of $6,000 or 4% of the participant's compensation (limited by the Internal Revenue Code to $10,000 in 1999) for participants earning in excess of $80,000 or (b) $10,000 for participants earning less than $80,000.
Investment programs
Participants may elect to have their contributions invested in any combination of the following ten investment fund options at December 31, 1999:
A self-directed fund option allows participants to invest in various other mutual funds outside of the standard Plan options. State Street Bank serves as custodian for funds invested through this self-directed fund option.
Vesting and distribution provisions
Participants are fully vested in their participant contributions and earnings thereon. Upon termination of employment for any reason, including death, retirement or total and permanent disability, or upon Plan termination, the balance in participants' accounts are distributable.
Administration
The Plan is administered by the Vice President - Human Services Division of Caterpillar Inc. who is responsible for non-financial matters, and the Benefits Funds Committee of Caterpillar Inc which 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.
Plan termination
Although it has not expressed any intent to do so, the Company has the right under the Plan at any time to terminate the Plan subject to provisions of ERISA. In the event of Plan termination, any unallocated assets of the plan shall be allocated to participant accounts and distributed in such a manner as the company may determine.
Federal income tax status
The Internal Revenue Service has determined and informed the Company by letter dated April 13, 1999, 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 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. Therefore, they believe that the Plan is qualified and the related trust is tax-exempt as of the financial statement date.
Risk and uncertainties
The Plan provides for various investment options in any combination of stocks, bonds, fixed income securities, mutual funds and other investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities could occur in the near term and that such changes could materially affect participants' account balances and the amounts reported in the statement of net assets available for benefits.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
New accounting standards
In September 1999, the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants issued Statement of Position (SOP) 99-3, Accounting for and Reporting of Certain Defined Contribution Benefit Plan Investments and Other Disclosure Matters (SOP 99-3). This SOP simplifies the disclosure of certain investment information of defined contribution plans. SOP 99-3 is effective for financial statements for plan years ending after December 15, 1999, with earlier application encouraged. The Plan has elected to adopt the provisions of this SOP for its Plan year ended December 31, 1999. The primary impact on the 1999 financial statements is the elimination of previously provided information by investment fund option.
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.
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 - MASTER TRUST:
Under a Master Trust agreement with The Northern Trust Company (the Trustee), Part 2 of the Caterpillar Inc. Employees' Investment Plan (EIP), 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 options available to the participants through the Preferred Group of Mutual Funds are described in Note 1.
CIML manages the Preferred Small Cap Fund and the Preferred Short-Term Government Fund. All other funds are managed by unrelated investment managers. Caterpillar Securities, Inc., a wholly-owned subsidiary of CIML, distributes the shares of the mutual funds to the Master Trust.
The percentage of the Plan's participation in the Master Trust was determined based on the December 31, 1999 and 1998 market values of net assets, as accumulated by the Trustee for the investment funds of each plan. At December 31, 1999 and 1998, the Plan's pro rata interest in the quoted market values of net assets of the Master Trust was 14.67% and 14.99%, respectively.
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. Details of the net assets and significant components of the changes in net assets of the Master Trust are as follows:
| December 31, |
||
| 1999 |
1998
|
|
| Investments, at fair value: |
||
| Cash and cash equivalents |
$ 16,061
|
$ 12,191
|
| Common stock |
330,694
|
343,517
|
| Registered investment companies |
1,394,423
|
1,115,716
|
| Participant loans |
27,405
|
24,686
|
| |
|
|
| Total investments |
1,768,583
|
1,496,110
|
| Dividend and interest receivable |
105
|
93
|
| Transfers receivable from EIP Part 1 |
2,802
|
2,525
|
| Contributions receivable |
6,976
|
6,648
|
| Receivable due from broker |
7,700
|
|
| Other receivable/(payable), net |
200
|
259
|
| |
|
|
| Master Trust net assets |
$ 1,786,366
|
$ 1,505,635
|
| |
|
|
| For the year ended
|
||
| 1999 |
1998
|
|
| Investment income: | ||
| Interest | $ 2,917
|
$ 2,946
|
| Dividends | 7,597
|
7,756
|
| Net appreciation (depreciation) in fair value of: | ||
| Common stock | 22,897
|
(15,546)
|
| Registered investment companies | 228,248
|
165,523
|
| |
|
|
| Net investment income | 261,659
|
160,679
|
| Contributions to all plans | 80,394
|
94,843
|
| Withdrawals from all plans | (128,500)
|
(76,445)
|
| Transfers from EIP Part 1 | 84,107
|
84,143
|
| Interfund transfers (to) from self-directed brokerage account, net | (16,764)
|
(1,437)
|
| |
|
|
| Increase in Master Trust net assets | 280,896
|
261,783
|
| Master Trust net assets: | ||
| Beginning of year | 1,505,635
|
1,243,852
|
| |
|
|
| End of year | $ 1,786,531
|
$ 1,505,635
|
| |
|
|
CATERPILLAR INC.
TAX DEFERRED SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1999
| (a)
|
(b)
|
(c)
|
(d)
|
(e)
|
|||
| Identity of Issue,
borrower, lessor or similar party |
Description of Investment,
including
maturity date, rate of interest collateral, par or maturity value |
Cost
|
Current
Value |
||||
| * |
Caterpillar Inc. |
401(k) Master Trust |
* *
|
$266,278,000 |
|||
| |
|||||||
| Acorn |
International; 95.87 units |
3,387 |
|||||
| American Century |
Benham Target Mat TR2010; 197.37 units |
10,571 |
|||||
| Benham Target Mat TR2020; 19.99 units |
588 |
||||||
| Income & Growth; 321.86 units |
10,960 |
||||||
| Global Natural Resource; 477.19 units | 6,232
|
||||||
| Utilities; 280.74 units |
4,621
|
||||||
| 20th Century Vista; 444.76 units |
9,878 |
||||||
| American Funds | Investment Company of America; 187.37 units | 6,082
|
|||||
| Artisan |
International; 474.91 units |
13,535 |
|||||
| Baron |
Asset; 189.24 units |
11,122 |
|||||
| Small Cap Fund; 1,697.71 units |
30,559 |
||||||
| Cash balance; 489.94 units |
490 |
||||||
| Century |
Shares Trust; 14.75 units |
506 |
|||||
| Columbia |
Real Estate Equity; 57.62 units |
839 |
|||||
| Dresdner RCM |
Global Technology Fund; 79.15 units |
4,687 |
|||||
| Dreyfus |
Appreciation Fund; 235.14 units |
10,753 |
|||||
| Disciplined Stock Class R; 127.67 units |
5,459 |
||||||
| Midcap Index Fund; 245.98 units |
5,397 |
||||||
| Short-term High Yield Secs; 481.23 units |
4,933 |
||||||
| FBR |
Small Cap Financial Fund; 113.89 units |
1,531 |
|||||
| Financial Services Fund; 111.62 units |
1,523 |
||||||
| Fidelity |
Worldwide; 270.55 units |
5,384 |
|||||
| Small Cap Stock; 48.43 units |
615 |
||||||
| Utilities; 266.27 units |
6,862 |
||||||
| Spartan High Income; 837.64 units |
10,052 |
||||||
| Government Securities; 590.94 units |
5,525 |
||||||
| Emerging Growth; 733.44 units |
43,734 |
||||||
| Dividend Growth; 2,377.54 units |
68,924 |
||||||
| Japan; 250.66 units |
6,838 |
||||||
| Japan Small Companies; 903.39 units |
21,925 |
||||||
| Overseas, 52.12 units |
2,502 |
||||||
| Retirement Growth; 311.88 units |
8,062 |
||||||
| Firsthand |
Technology Leaders; 615.30 units |
27,492 |
|||||
| Technology Innovator; 33.90 units |
1,673 |
||||||
| E-Commerce; 44.53 units |
662 |
||||||
| Communications; 51.92 units |
761 |
||||||
| Franklin |
Gold Class II; 652.80 units |
6,247 |
|||||
| Fremont |
US Micro Capital; 51.71 units |
2,035 |
|||||
| Gabelli |
GLBL Inter-Active Couch Potato; 305.86 units |
10,757 |
|||||
| Guinness Flight |
China & Hong Kong; 637.50 units |
11,252 |
|||||
| Hotchkis & Wiley |
International; 299.23 units |
7,900 |
|||||
| Icon |
Technology; 52.60 units |
1,026 |
|||||
| The Internet |
Fund; 65.10 units |
3,237 |
|||||
| Invesco Strategic |
Health Sciences N/C; 57.76 units |
3,171 |
|||||
| Financial Services N/C; 200.23 units |
5,330 |
||||||
| Worldwide Communications; 68.11 units |
3,517 |
||||||
| High Yield Bond N/C; 96.22 units |
619 |
||||||
| Janus |
Janus Fund; 398.22 units |
17,542 |
|||||
| Inv't Growth & Income; 425.83 units |
17,859 |
||||||
| Inv't Worldwide; 1,292.42 units |
98,780 |
||||||
| Inv't Twenty; 1,009.03 units |
84,183 |
||||||
| Global Technology; 2,253.33 units |
69,696 |
| (a)
|
(b)
|
(c)
|
(d)
|
(e)
|
| Identity of issue,
borrower, lessor or similar party |
Description of investment,
including
maturity date, rate of interest, collateral, par or maturity value |
Cost
|
Current
Value |
|
| Janus |
Special Situations; 107.08 units |
2,468 |
||
| Global Life Sciences; 1,426.06 units |
22,960 |
|||
| Inv't Equity Income; 446.11 units |
11,215 |
|||
| Olympus; 1,609.62 units |
85,728 |
|||
| High Yield Bond; 0.30 units |
3 |
|||
| Inv't Balanced; 451.69 units |
10,565 |
|||
| Enterprise; 145.78 units |
11,177 |
|||
| Inv't Overseas; 413.45 units |
15,380 |
|||
| Inv't Mercury; 2,013.19 units |
88,198 |
|||
| Lexington |
Troika Dialog Russia Income; 137.21 units |
925 |
||
| Longleaf |
Partners; 25.96 units |
532 |
||
| Realty; 25.10 units |
319 |
|||
| Midas |
Midas Fund; 950.93 units |
1,293 |
||
| Montgomery |
Asset Allocation; 484.09 units |
7,862 |
||
| Emerging Asia; 282.61 units |
3,304 |
|||
| Munder |
Net Net Class A; 269.11 units |
20,568 |
||
| Neuberger & Berman |
Partners Trust I; 486.09 units |
8,740 |
||
| Millennium Trust; 37.34 units |
1,146 |
|||
| Oakmark |
Oakmark Fund; 460.54 units |
12,527 |
||
| PBHG |
Growth; 255.42 units |
12,102 |
||
| Tech & Communication; 374.99 units |
25,522 |
|||
| Pin Oak |
Aggressive Stock; 53.57 units |
2,878 |
||
| Red Oak |
Technology Select; 69.89 units |
1,701 |
||
| RS |
Value Plus and Growth N/C; 337.24 units |
10,262 |
||
| Rushmore |
American Gas Index; 139.60 units |
2,146 |
||
| Rydex |
OTC Fund; 146.50 units |
12,066 |
||
| Select |
Technology; 10.81 units |
1,647 |
||
| Utilities Growth; 241.40 units |
15,957 |
|||
| Develop Communications; 26.33 units |
1,656 |
|||
| Telecom; 7.55 units |
670 |
|||
| Electronics; 23.82 units |
2,117 |
|||
| Computers; 20.26 units |
2,117 |
|||
| SSGA |
Money Market Fund; 615,411.57 units |
615,412 |
||
| Strong |
Corporate Bond Income; 1,845.65 units |
19,361 |
||
| Index 500; 169.81 units |
3,068 |
|||
| Growth & Income; 159.38 units |
4,562 |
|||
| T Rowe Price |
Health Sciences; 953.58 units |
15,191 |
||
| Equity Income; 58.40 units |
1,449 |
|||
| Mid Cap Growth; 128.24 units |
5,146 |
|||
| New Era; 763.01 units |
16,634 |
|||
| Science & Technology; 273.87 units |
17,448 |
|||
| Tweedy Browne |
Global Value Fund; 197.61 units |
3,994 |
||
| Vanguard |
US Growth Portfolio; 566.33 units |
24,652 |
||
| Growth & Income; 117.04 units |
4,340 |
|||
| Short-Term Treasury; 1,096.66 units |
10,978 |
|||
| Fixed Income Inter Term Co.; 1,576.04 units |
14,515 |
|||
| Index Trust S&P 500 Port; 1,410.42 units |
190,873 |
|||
| Growth Index; 2,509.76 units |
98,960 |
|||
| Warburg Pincus |
Growth & Income; 32.24 units |
471 |
||
| JSPSN OTC; 453.41 units |
12,510 |
|||
| Global Telecomm; 16.44 units |
1,180 |
|||
| Growth Fund of America; 233.71 units |
6,810 |
|||
| Homestate Year 2000 Fund; 77.17 units |
2,344 |
|||
| |
||||
| * *
|
2,163,464 |
|||
| |
||||
| Total investments | $268,441,464 |
|||
| |
** - Cost information is not applicable for participant directed investments
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 26, 2000 relating to the financial statements of the Caterpillar Inc. Tax Deferred Savings Plan, which appears in this Form 11-K.
PricewaterhouseCoopers LLP
Peoria, Illinois
May 26, 2000
|
|