-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A+VZjBtxz1bYUGY0OVXTg+sr6DUIOBMp6qZhTqy2hT1fYnED5jSp3H+Jk9P7seZ0 rQhVmSc6Jld2fnuYIYCKjw== 0000950131-99-003526.txt : 19990625 0000950131-99-003526.hdr.sgml : 19990625 ACCESSION NUMBER: 0000950131-99-003526 CONFORMED SUBMISSION TYPE: 10-K405/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990601 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CATERPILLAR INC CENTRAL INDEX KEY: 0000018230 STANDARD INDUSTRIAL CLASSIFICATION: CONSTRUCTION MACHINERY & EQUIP [3531] IRS NUMBER: 370602744 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K405/A SEC ACT: SEC FILE NUMBER: 001-00768 FILM NUMBER: 99638568 BUSINESS ADDRESS: STREET 1: 100 NE ADAMS ST CITY: PEORIA STATE: IL ZIP: 61629-7310 BUSINESS PHONE: 3096751000 FORMER COMPANY: FORMER CONFORMED NAME: CATERPILLAR TRACTOR CO DATE OF NAME CHANGE: 19860623 10-K405/A 1 FORM 11-K - EIP, SIP, TDSP 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 C. Caterpillar Inc. Employees' Investment Plan Financial Statements and Additional Information November 30, 1998 and 1997 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 plan benefits 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 of the Caterpillar Inc. Employees' Investment Plan (the Plan) at November 30, 1998 and 1997, and the changes in net assets available for plan benefits for the years ended November 30, 1998 and 1997, 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 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 and of reportable (5%) 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 (ERISA). The fund information in the statements of net assets available for plan benefits and the statements 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. These supplemental schedules and fund information are the responsibility of the Plan's management. The supplemental schedules and 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/PricewaterhouseCoopers LLP Peoria, Illinois May 26, 1999 EXHIBIT A --------- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION ------------------------------------------------------------------------- NOVEMBER 30, 1998 ----------------- (Dollars in 000's)
--------------------------------------------------------------------- PART 1 ------------------------- ------------------------------------------ Caterpillar Government Caterpillar ----------------------------- Common Short-term Common Stable Stock Investment Stock Principal Short-term Money Fund Fund Fund Fund Government Market ------------ ----------- ----------- --------- ---------- ------- Investments, at fair value (Notes 2 and 4): Caterpillar Inc. common stock, 18,056,623 shares $892,674 $ $ $ $ $ Collective trust fund 12,805 Registered investment companies Investment in Master Trust Net Assets 310,947 79,879 14,783 84,794 -------- ------- -------- --------- ---------- ------- Total cash and investments 892,674 12,805 310,947 79,879 14,783 84,794 Employer and participant contributions receivable 3,176 111 Interest and dividends receivable 14 52 Transfers payable to EIP II (3,712) (14) Other payables (5) -------- ------- -------- --------- ---------- ------- Total net assets $892,147 $12,954 $310,947 $79,879 $14,783 $84,794 ======== ======= ======== ========= ========== ======= Fund Information ------------------------------------------------------------------------------------ PART 2 ------------------------------------------------------------------------------------ Preferred Group of Mutual Funds -------------------------------------------------------------- Self- Asset Fixed Small Loan Directed Value International Growth Allocation Income Cap Fund Fund Total ------- ------------- -------- ---------- ------- ------- ------- -------- ----------- Investments, at fair value (Notes 2 and 4): Caterpillar Inc. common stock, 18,056,623 shares $ $ $ $ $ $ $ $ $ 892,674 Collective trust fund 12,805 Registered investment companies 15,618 15,618 Investment in Master Trust Net Assets 222,513 73,811 269,098 79,339 34,243 34,920 16,529 1,220,856 -------- ------------- -------- ---------- ------- ------- ------- -------- ---------- Total cash and investments 222,513 73,811 269,098 79,339 34,243 34,920 16,529 15,618 2,141,953 Employer and participant contributions receivable 3,287 Interest and dividends receivable 66 Transfers payable to EIP II (3,726) Other payables (5) -------- ------------- -------- ---------- ------- ------- ------- -------- ---------- Total net assets $222,513 $73,811 $269,098 $79,339 $34,243 $34,920 $16,529 $15,618 $2,141,575 ======== ============= ======== ========== ======= ======= ======= ======== ==========
(See notes to financial statements) -2- 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)
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 Growth ------------ ----------- ----------- --------- ---------- ------- -------- ------------- -------- 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 70,390 209,302 -------- ------- -------- --------- ---------- ------- -------- ------------- -------- Total cash and investments 891,718 13,078 287,108 66,845 10,942 52,945 194,930 70,390 209,302 Employer and participant contributions receivable 3,191 81 Interest and 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 $209,302 ======== ======= ======== ========= ========== ======= ======== ============= ======== --------------------------------------------------- --------------------------------------------------- ------------------------------ Self- Asset Fixed Small Loan Directed 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 49,400 20,411 37,154 15,554 1,014,981 ---------- ------- ------- ------- -------- ---------- Total cash and investments 49,400 20,411 37,154 15,554 14,108 1,933,885 Employer and participant contributions receivable 3,272 Interest and dividends receivable 70 Transfers payable to EIP II (2,997) Other payables (161) ---------- ------- ------- ------- -------- ---------- Total net assets $49,400 $20,411 $37,154 $15,554 $14,108 $1,934,069 ========== ======= ======= ======= ======== ==========
(See notes to financial statements) -3- 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, 1998 ------------------------------------ (Dollars in 000's)
Fund Information ---------------------------------------------------------------------------------------------------- PART 1 PART 2 ------------------------- ------------------------------------------------------------------------- Preferred Group of Mutual Funds Caterpillar Government Caterpillar ----------------------------------------------------------- Common Short-Term Common Stable Stock Investment Stock Principal Short-term Money Fund Fund Fund Fund Government Market Value International ---- ---- ---- ---- ---------- ------ ------ ------------- Contributions: Participant (Note 1) $ 58,167 $ 1,398 $ 7,400 $ 3,267 $ 745 $ 2,998 $ 15,820 $ 6,893 Employer (Notes 1 and 2) 32,627 --------- ------- -------- ------- ------- -------- -------- ------- 90,794 1,398 7,400 3,267 745 2,998 15,820 6,893 --------- ------- -------- ------- ------- -------- -------- ------- Investment income:- Interest 103 Dividends 19,877 Net appreciation in fair value of: Common stock 32,107 Collective trust fund 692 Registered investment companies Plan interest in net investment income of Master Trust (Note 4) 16,885 4,487 594 3,529 22,511 4,901 --------- ------- -------- ------- ------- -------- -------- ------- Net investment income 52,087 692 16,885 4,487 594 3,529 22,511 4,901 --------- ------- -------- ------- ------- -------- -------- ------- Withdrawals (59,632) (1,152) (16,370) (5,996) (565) (13,921) (7,881) (2,628) Transfers (to)/from other plans, net 552 269 16 76 254 98 Interfund transfers, net (82,906) (1,160) 15,372 11,007 3,051 39,167 (3,121) (5,843) --------- ------- -------- ------- ------- -------- -------- ------- Withdrawals and transfers, net (142,538) (2,312) (446) 5,280 2,502 25,322 (10,748) (8,373) --------- ------- -------- ------- ------- -------- -------- ------- Increase (decrease) in net assets 343 (222) 23,839 13,034 3,841 31,849 27,583 3,421 Net assets: Beginning of year 891,804 13,176 287,108 66,845 10,942 52,945 194,930 70,390 --------- ------- -------- ------- ------- -------- -------- ------- End of year $ 892,147 $12,954 $310,947 $79,879 $14,783 $ 84,794 $222,513 $73,811 ========= ======= ======== ======= ======= ======== ======== ======= ----------------------------------------------------------------- ----------------------------------------------------------------- -------------------------------------------- Self- Asset Fixed Small Loan Directed Growth Allocation Income Cap Fund Fund Total ------ ---------- ------ --- ---- ---- ----- Contributions: Participant (Note 1) $ 18,912 $ 6,814 $ 2,339 $ 5,268 $ $ $ 130,021 Employer (Notes 1 and 2) 32,627 -------- ------- ------- ------- ------- -------- ---------- 18,912 6,814 2,339 5,268 162,648 -------- ------- ------- ------- ------- -------- ---------- Investment income:- Interest 103 Dividends 19,877 Net appreciation in fair value of: Common stock 32,107 Collective trust fund 692 Registered investment companies 1,073 1,073 Plan interest in net investment income of Master Trust (Note 4) 45,044 13,177 1,852 (4,340) 1,445 110,085 -------- ------- ------- ------- ------- -------- ---------- Net investment income 45,044 13,177 1,852 (4,340) 1,445 1,073 163,937 -------- ------- ------- ------- ------- -------- ---------- Withdrawals (7,044) (2,665) (1,469) (1,525) (384) (121,232) Transfers (to)/from other plans, net 519 59 41 152 86 31 2,153 Interfund transfers, net 2,365 12,554 11,069 (1,789) (172) 406 -------- ------- ------- ------- ------- -------- ---------- Withdrawals and transfers, net (4,160) 9,948 9,641 (3,162) (470) 437 (119,079) -------- ------- ------- ------- ------- -------- ---------- Increase (decrease) in net assets 59,796 29,939 13,832 (2,234) 975 1,510 207,506 Net assets: Beginning of year 209,302 49,400 20,411 37,154 15,554 14,108 1,934,069 -------- ------- ------- ------- ------- -------- ---------- End of year $269,098 $79,339 $34,243 $34,920 $16,529 $15,618 $2,141,575 ======== ======= ======= ======= ======= ======== ==========
(See notes to financial statements) -4- 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)
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 ---- ---- ---- ---- ---------- ------ ----- ------------- Contributions: Participant (Note 1) $ 49,157 $ 1,615 $ 4,900 $ 2,923 $ 559 $ 2,871 $ 10,628 $ 6,336 Employer (Notes 1 and 2) 28,517 --------- ------- -------- -------- ------- -------- -------- -------- 77,674 1,615 4,900 2,923 559 2,871 10,628 6,336 --------- ------- -------- -------- ------- -------- -------- -------- Investment income:- Interest 95 Dividends 16,859 Net appreciation in fair value of: Common stock 160,222 Collective trust fund 686 Registered investment companies Plan interest in net investment income of Master Trust (Note 4) 33,703 4,400 593 3,551 42,029 6,354 --------- ------- -------- -------- ------- -------- -------- -------- Net investment income 177,176 686 33,703 4,400 593 3,551 42,029 6,354 --------- ------- -------- -------- ------- -------- -------- -------- Withdrawals (72,176) (1,288) (10,615) (3,416) (379) (9,226) (5,055) (2,231) Transfers (to)/from other plans, net 281 155 21 265 298 117 Interfund transfers, net (55,794) (618) 101,183 (11,609) (1,233) (22,208) (4,246) (12,895) --------- ------- -------- -------- ------- -------- -------- -------- Withdrawals and transfers, net (127,970) (1,906) 90,849 (14,870) (1,591) (31,169) (9,003) (15,009) --------- ------- -------- -------- ------- -------- -------- -------- Increase (decrease) in net assets 126,880 395 129,452 (7,547) (439) (24,747) 43,654 (2,319) Net assets: Beginning of year 764,924 12,781 157,656 74,392 11,381 77,692 151,276 72,709 --------- ------- -------- -------- ------- -------- -------- -------- End of year $ 891,804 $13,176 $287,108 $ 66,845 $10,942 $ 52,945 $194,930 $ 70,390 ========= ======= ======== ======== ======= ======== ======== ======== ---------------------------------------------------------------- ---------------------------------------------------------------- ------------------------------------------- Self- Asset Fixed Small Loan Directed Growth Allocation Income Cap Fund Fund Total ------ ---------- ------ --- ---- ---- ----- Contributions: Participant (Note 1) $ 13,315 $ 3,464 $ 1,207 $ 2,221 $ $ $ 99,196 Employer (Notes 1 and 2) 28,517 -------- ------- ------- ------- ------- -------- ---------- 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) 47,048 7,484 1,287 6,290 1,340 154,079 -------- ------- ------- ------- ------- -------- ---------- Net investment income 47,048 7,484 1,287 6,290 1,340 1,108 333,049 -------- ------- ------- ------- ------- -------- ---------- Withdrawals (5,341) (1,906) (939) (490) (343) (113,405) Transfers (to)/from other plans, net 389 52 10 8 82 7 1,685 Interfund transfers, net (7,766) (1,806) (1,484) 14,472 (2) 4,006 -------- ------- ------- ------- ------- -------- ---------- Withdrawals and transfers, net (12,718) (3,660) (2,413) 13,990 (263) 4,013 (111,720) -------- ------- ------- ------- ------- -------- ---------- Increase (decrease) in net assets 47,645 7,288 81 22,501 1,077 5,121 349,042 Net assets: Beginning of year 161,657 42,112 20,330 14,653 14,477 8,987 1,585,027 -------- ------- ------- ------- ------- -------- ---------- End of year $209,302 $49,400 $20,411 $37,154 $15,554 $14,108 $1,934,069 ======== ======= ======= ======= ======= ======== ==========
(See notes to financial statements) -5- 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 percent. 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- 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 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 1998) for participants earning in excess of $80,000 or (b) $10,000 for participants earning less than $80,000. 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. 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, including a self-directed fund option which allows 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- 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- 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 fund. Total units held (in thousands) by the Plan and their respective unit values at each month end are as follows:
Units Unit ----- ---- Value ----- 1997 ---- December 8,595 34.00 1998 ---- January 8,566 33.62 February 8,354 38.04 March 8,583 38.36 April 8,690 39.63 May 8,734 38.30 June 9,258 36.92 July 9,562 34.00 August 9,704 29.78 September 9,704 31.33 October 9,674 31.63 November 9,003 34.54
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 options available to the participants through the Preferred Group of Mutual Funds are 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 -9- CIML manages the Preferred Small Cap Fund and the Preferred Short-Term Government Fund; however, during the period November 1, 1997 through March 31, 1998, the Preferred Short-Term Government Fund was managed by an unrelated third party. 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, 1998 and 1997 market values of net assets, as accumulated by the Trustee for the investment funds of each plan. At November 30, 1998 and 1997, 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:
1998 1997 ------ ------ Caterpillar Inc. Common Stock Fund 87.30% 86.21% Preferred Stable Principal Fund 72.69% 70.30% Preferred Short-Term Government Fund 78.21% 76.72% Preferred Money Market Fund 84.88% 84.60% Preferred Value Fund 82.19% 81.69% Preferred International Fund 85.03% 85.06% Preferred Growth Fund 81.65% 81.34% Preferred Asset Allocation Fund 86.94% 86.07% Preferred Fixed Income Fund 87.21% 87.45% Preferred Small Cap Fund 86.06% 87.18% Loan Fund 68.84% 69.30%
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, 1998 and 1997. -10- CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN --------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS --------------------------------------------- NOVEMBER 30, 1998 ----------------- (Dollars in 000's)
Preferred Group of Mutual Funds ---------------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Asset Fund Fund Government Market Value International Growth Allocation ------------ --------- ----------- ------- --------- -------------- --------- ----------- Investments, at fair value: Cash and cash equivalents $ 17,876 $ $ $ $ $ $ $ Common stock 334,345 Registered investment companies 109,219 18,816 97,380 270,011 86,207 328,201 90,812 Participant loans -------- -------- ------- ------- -------- ------- -------- ------- Total investments 352,221 109,219 18,816 97,380 270,011 86,207 328,201 90,812 Dividend and interest receivable 45 Transfers receivable from EIP 1 3,712 14 Contributions receivable 806 361 77 338 1,223 588 1,572 436 Interfund transfers receivable/(payable), net (811) 184 (3) 2,081 (659) (66) (440) (29) Other receivable/(payable), net 189 119 12 89 159 81 224 37 -------- -------- ------- ------- -------- ------- -------- ------- Net assets $356,162 $109,883 $18,902 $99,902 $270,734 $86,810 $329,557 $91,256 ======== ======== ======= ======= ======== ======= ======== ======= ----------------- Fixed Small Loan Income Cap Fund Total ------- -------- -------- ---------- Investments, at fair value: Cash and cash equivalents $ $ $ $ 17,876 Common stock 334,345 Registered investment companies 38,990 40,492 1,080,128 Participant loans 24,784 24,784 ------- ------- ------- ---------- Total investments 38,990 40,492 24,784 1,457,133 Dividend and interest receivable 45 Transfers receivable from EIP 1 3,726 Contributions receivable 186 375 5,962 Interfund transfers receivable/(payable), net 75 (332) Other receivable/(payable), net 16 39 (773) 192 ------- ------- ------- ---------- Net assets $39,267 $40,574 $24,011 $1,467,058 ======= ======= ======= ==========
-11- CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN --------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS --------------------------------------------- NOVEMBER 30, 1997 ----------------- (Dollars in 000's)
Preferred Group of Mutual Funds -------------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Asset Fund Fund Government Market Value International Growth Allocation ------------ --------- ---------- -------- -------- -------------- -------- ----------- 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 56,985 Participant loans -------- ------- ------- ------- -------- ------- -------- ------- Total investments 328,948 94,548 14,174 62,201 237,185 82,017 255,414 56,985 Dividend and interest receivable 99 Transfers receivable from EIP 1 2,955 42 Contributions receivable 960 399 76 311 1,261 664 1,610 397 Transfers receivable/(payable), net (69) 31 (34) 15 (17) 53 (14) Other receivable/(payable), net 157 105 11 66 159 90 240 35 -------- ------- ------- ------- -------- ------- -------- ------- Net assets $333,050 $95,083 $14,261 $62,586 $238,620 $82,754 $257,317 $57,403 ======== ======= ======= ======= ======== ======= ======== ======= ------------------ Fixed Small Loan Income Cap Fund Total ------- ------- -------- ---------- Investments, at fair value: Cash and cash equivalents $ $ $ $ 14,588 Common stock 314,360 Registered investment companies 23,173 42,188 867,885 Participant loans 23,198 23,198 ------- ------- ------- ---------- Total investments 23,173 42,188 23,198 1,220,031 Dividend and interest receivable 99 Transfers receivable from EIP 1 2,997 Contributions receivable 143 360 6,181 Transfers receivable/(payable), net 11 24 Other receivable/(payable), net 13 50 (751) 175 ------- ------- ------- ---------- Net assets $23,340 $42,622 $22,447 $1,229,483 ======= ======= ======= ==========
-12- CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN --------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS -------------------------------------------------------- FOR THE YEAR ENDED NOVEMBER 30, 1998 ------------------------------------ (Dollars in 000's)
Preferred Group of Mutual Funds ------------------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Asset Fund Fund Government Market Value International Growth Allocation ------------ ---------- ----------- --------- --------- -------------- --------- ----------- Investment income:- Interest $ 913 $ $ $ $ $ $ $ Dividends 7,772 Net appreciation in fair value of: Common stock 10,987 Registered investment companies 6,287 768 4,091 27,432 5,782 55,238 15,269 -------- ------- -------- -------- --------- -------- -------- Net investment income 19,672 6,287 768 4,091 27,432 5,782 55,238 15,269 -------- -------- ------- -------- -------- --------- -------- -------- Contributions to all plans 12,842 5,433 1,049 4,503 19,893 8,626 24,189 8,166 -------- -------- ------- -------- -------- --------- -------- -------- Withdrawals from all plans (18,329) (8,248) (709) (15,029) (10,858) (3,271) (9,679) (3,132) -------- -------- ------- -------- -------- --------- -------- -------- Transfers from EIP 1 82,906 1,160 -------- -------- ------- -------- -------- --------- -------- -------- Interfund transfers, net (73,979) 11,328 3,533 42,591 (4,353) (7,081) 2,492 13,550 -------- -------- ------- -------- -------- --------- -------- -------- Increase (decrease) in net assets 23,112 14,800 4,641 37,316 32,114 4,056 72,240 33,853 Net assets: Beginning of year 333,050 95,083 14,261 62,586 238,620 82,754 257,317 57,403 -------- -------- ------- -------- -------- --------- -------- -------- End of year $356,162 $109,883 $18,902 $ 99,902 $270,734 $ 86,810 $329,557 $ 91,256 ======== ======== ======= ======== ======== ========= ======== ======== ------------------- Fixed Small Loan Income Cap Fund Total -------- -------- -------- ----------- Investment income:- Interest $ $ $ 2,070 $ 2,983 Dividends 7,772 Net appreciation in fair value of: Common stock 10,987 Registered investment companies 2,115 (5,020) 111,962 -------- -------- -------- ----------- Net investment income 2,115 (5,020) 2,070 133,704 -------- -------- -------- ----------- Contributions to all plans 2,921 6,540 94,162 -------- -------- -------- ---------- Withdrawals from all plans (1,687) (1,673) (617) (73,232) -------- -------- -------- ---------- Transfers from EIP 1 84,066 -------- -------- -------- ---------- Interfund transfers, net 12,578 (1,895) 111 (1,125) -------- -------- -------- ---------- Increase (decrease) in net assets 15,927 (2,048) 1,564 237,575 Net assets: Beginning of year 23,340 42,622 22,447 1,229,483 -------- -------- -------- ---------- End of year $39,267 $40,574 $24,011 $1,467,058 ======== ======== ======== ==========
-13- 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)
Preferred Group of Mutual Funds -------------------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Asset Fund Fund Government Market Value International Growth Allocation ------------ ---------- ----------- --------- --------- -------------- --------- ----------- 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 57,870 8,647 -------- -------- ------- -------- -------- -------- -------- ------- Net investment income 38,812 6,227 774 4,122 51,374 7,320 57,870 8,647 -------- -------- ------- -------- -------- -------- -------- ------- Contributions to all plans 8,777 5,437 892 4,416 14,289 8,290 18,060 4,665 -------- -------- ------- -------- -------- -------- -------- ------- Withdrawals from all plans (11,838) (5,438) (537) (10,417) (6,904) (2,552) (6,939) (2,099) -------- -------- ------- -------- -------- -------- -------- ------- Transfers from EIP 1 55,793 618 -------- -------- ------- -------- -------- -------- -------- ------- Interfund transfers, net 59,058 (16,001) (1,653) (26,931) (5,826) (15,404) (10,341) (2,306) -------- -------- ------- -------- -------- -------- -------- ------- Increase (decrease) in net assets 150,602 (9,775) (524) (28,192) 52,933 (2,346) 58,650 8,907 Net assets: Beginning of year 182,448 104,858 14,785 90,778 185,687 85,100 198,667 48,496 -------- -------- ------- -------- -------- -------- -------- ------- End of year $333,050 $ 95,083 $14,261 $ 62,586 $238,620 $ 82,754 $257,317 $57,403 ======== ======== ======= ======== ======== ======== ======== ======= ------------------ Fixed Small Loan 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 1,481 7,239 145,054 ------- ------- ------- ---------- Net investment income 1,481 7,239 1,851 185,717 ------- ------- ------- ---------- Contributions to all plans 1,741 2,951 69,518 ------- ------- ------- ---------- Withdrawals from all plans (1,036) (560) (530) (48,850) ------- ------- ------- ---------- Transfers from EIP 1 56,411 ------- ------- ------- ---------- Interfund transfers, net (1,922) 16,021 999 (4,306) ------- ------- ------- ---------- Increase (decrease) in net assets 264 25,651 2,320 258,490 Net assets: Beginning of year 23,076 16,971 20,127 970,993 ------- ------- ------- ---------- End of year $23,340 $42,622 $22,447 $1,229,483 ======= ======= ======= ==========
-14- ADDITIONAL INFORMATION ----------------------- SCHEDULE I ----------- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- NOVEMBER 30, 1998 -----------------
(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 ---------------- --------------------------------- ---- ----- * Caterpillar Inc. Common stock; 18,056,623 shares $465,488,389 $ 892,674,300 ============ ============== * Northern Trust Collective Government Short-Term Investment Fund $ 12,805,026 $ 12,805,026 ============= ============== * Caterpillar Inc. 401(k) Master Trust $790,211,972 $1,220,856,000 AIM Global High Income Class B; 970.246 units $ $ 8,296 Accessor FDS Inc. Small to Mid-Cap; 235.412 units 5,144 American Century Benham Target Mat TR 2005; 814.099 units 61,546 Century Benham Target Mat TR 2020; 564.493 units 20,480 Century Global Gold; 17,500.333 units 104,127 Century Income & Growth; 440.341 units 12,624 Century Equity Growth; 142.569 units 3,085 Century 20th Century Ultra; 1,938.295 units 63,925 Heritage Fund; 9,899.069 units 4,356 Ariel Growth Class A; 302.946 units 12,727 Artisan Small Cap; 19.976 units 217 International; 770.381 units 11,725 BT Investment International Equity; 201.288 units 4,680 Babson Value Income; 2,534.072 units 123,060 Baron Asset; 7,972.58 units 368,891 Growth & Inc.; 722.879 units 16,250 Small Cap Fund; 405.515 units 3,869 Berger Small Cap Value Retail; 446.157 units 8,736 Small Company Growth Retail; 731.804 units 2,942 New Generation Retail; 348.158 units 5,017 Balanced Retail; 285.561 units 4,263 Select Retail; 402.545 units 6,445 Brandywine Blue; 3,307.724 units 77,765 Brandywine; 280.717 units 7,720 Bridgeway Microcap Limited; 1,558.442 units 7,122 Bull & Bear Gold; 1,706.223 units 5,033 Montag & Caldwell Growth Fund; 2,157.963 units 61,135 Cohen & Steers Realty Shares Inc; 3,972.974 units 161,620 Colonial Newport Tiger Class A; 31.909 units 253 Dodge & Cox Balance; 880.151 units 60,378 Dreyfus Appreciation Fund; 181.361 units 7,363 Premier Worldwide Growth A; 366.393 units 11,706 Aggressive Value Fund; 180.050 units 4,456 Small Company Value Fund; 352.797 units 6,597 Large Company Value Fund; 282.649 units 6,289 S&P 500 Index Fund; 1,554.420 units 53,985 New Leaders; 410.079 units 16,186
(Continued) -15- SCHEDULE I ----------- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- NOVEMBER 30, 1998 -----------------
(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 ---------------- --------------------------------- ---- ----- Eaton Vance Classic Senior Floating Rate; 166.257 units $ $ 1,658 Excelsior Income Business & Indl Restruc; 155.068 units 3,449 FBR Small Cap Financial Fund; 50.607 units 835 Financial Services Fund; 161.500 units 2,862 Small Cap Growth Value Fund; 160.342 units 2,424 Fidelity Worldwide; 146.851 units 2,405 Diversified International; 1,947.600 units 34,920 Europe Capital Appreciation; 571.433 units 7,695 Emerging Markets; 166.113 units 1,184 Spartan U.S. Equity Index; 807.619 units 33,645 Market Index; 39.499 units 5,133 Fidelity Capital & Income; 1,876.655 units 18,297 Stock Selector; 6,949.820 units 199,321 Asset Manager Growth; 143.779 units 2,963 Contra Fund; 2,316.969 units 126,460 Utilities; 1,354.464 units 29,974 Equity Income; 606.07 units 40,231 Real Estate Investment; 3,113.681 units 50,348 Equity Income II; 1,977.754 units 60,776 Spartan High Income; 3,611.573 units 44,458 Fidelity Government Securities; 11,481.838 units 117,230 Magellan; 77.475 units 8,769 Europe; 470.439 units 16,324 Low Priced Stock; 536.852 units 11,988 Growth & Income; 2,465.583 units 108,239 Dividend Growth; 6,522.289 units 178,580 Select Energy; 572.373 units 10,411 Technology; 130.682 units 8,827 Health Care; 762.949 units 101,045 Precious Metals; 996.226 units 9,305 Utilities Growth; 77.042 units 4,745 Natural Gas; 500.276 units 5,798 Financial Services; 113.687 units 10,945 Regional Banks; 1,743.135 units 74,850 Home Finance; 1,948.362 units 84,617 Retailing; 40.664 units 2,349 Energy Service; 1,141.965 units 16,296 American Gold; 162.251 units 2,108 Money Market; 19,737.510 units 19,738 Software & Computer; 215.230 units 10,398 Telecomm; 460.900 units 24,695 Brokerage & Investment Management; 1,092.642 units 41,870 Electronics; 3,159.223 units 127,633 Computers; 534.939 units 30,823 Fidelity Value; 205.237 units 10,984
(Continued) -16- SCHEDULE I ----------- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- NOVEMBER 30, 1998 -----------------
(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 ---------------- --------------------------------- ---- ----- Flag Investors Telephone, INC CL A; 2,503.457 units $ $ 71,248 Founders Growth; 590.914 units 11,848 Worldwide Growth; 1,868.580 units 41,127 Franklin CA Growth Class 1; 94.697 units 2,197 Global Health Care; 49.950 units 803 Fremont US Micro Capital; 166.389 units 3,080 Gabelli Westwood Realty Retail Class; 5,134.870 units 42,517 Growth Shares Ben Int; 832.284 units 28,023 Global Inter-Active Couch Potato; 277.624 units 4,567 GAM International Class A; 709.901 units 20,367 Global; 263.582 units 4,771 Govett Smaller Companies Class A; 57.615 units 886 Guinness Flight China & Hong Kong; 1,358.917 units 15,138 Flight Asia Small Cap; 1,096.045 units 7,508 Flight Mainland China Fund; 21.386 units 197 John Hancock Special Equity CL B; 571.434 units 11,943 Harbor Bond; 8,426.805 units 99,858 Capital Appreciation; 145.264 units 5,227 International Growth; 509.504 units 9,619 Oakmark Fund; 3,455.029 units 126,593 International; 778.432 units 8,641 Small Cap; 4,118.325 units 59,633 Select; 6,321.634 units 113,094 Heartland Group Value Plus; 3,180.737 units 43,958 Group Midcap Value; 394.633 units 4,578 Hotchkis & Wiley International; 3,440.515 units 81,231 IAI Bond; 1,642.935 units 15,657 Capital Appreciation; 782.571 units 10,213 Invesco Strategic Portfolio Inc. Energy; 7,604.563 units 78,631 Strategic Gold Portfolio; 22,486.708 units 40,701 Strategic Health Sciences; 434.994 units 28,440 Strategic Port Inc. Technology; 1,674.481 units 51,289 Strategic Financial Services; 811.426 units 24,538 Worldwide Communications; 3,462.840 units 64,236 International European; 848.552 units 15,893 Janus Fund; 2,335.738 units 69,698 Inv't Growth & Income; 4,049.006 units 113,129 Inv't Worldwide; 15,799.25 units 697,537 Inv't Twenty; 12,905.554 units 594,688 Flexible Income; 382.324 units 3,835 Special Situations; 3,565.602 units 54,804 Inv't Equity Income; 4,044.804 units 67,265 Olympus; 8,451.157 units 196,996 High Yield Bond; 2,329.539 units 24,833 Enterprise; 617.275 units 21,487
(Continued) -17- SCHEDULE I ----------- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- NOVEMBER 30, 1998 -----------------
(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 ---------------- --------------------------------- ---- ----- Inv't Overseas; 13,734.140 units $ $ 261,773 Inv't Mercury; 407.447 units 9,025 Inv't Balanced; 1,141.129 units 20,632 Japan Fund; 1,594.808 units 12,440 Kaufmann Fund; 11,166.596 units 59,295 Focus Trust Fund; 516.977 units 10,691 Lexington Corporate Leaders Trust CL B; 721.831 units 11,224 Worldwide Emerging Mkts Inc; 617.707 units 4,540 Lindner Bulwark; 893.979 units 5,158 Invts Divid; 976.854 units 23,728 Longleaf Small Cap; 450.418 units 9,679 Loomis Sayles Bond; 6,095.522 units 77,047 Invt Grade Bond Retail; 1,882.859 units 18,942 Lord Abbett Growth & Income Class C; 334.366 units 3,083 MAS Value Portfolio Institutional; 456.433 units 7,905 MFS Emerging Growth Class B; 276.307 units 10,967 Managers FDS Special Equity; 252.524 units 14,379 FDS Int'l Equity; 282.573 units 14,391 Marsico Focus; 10,459.800 units 142,776 Growth and Income; 305.192 units 3,919 Masters Select International; 222.618 units 2,355 Matthews Intl FDS Pac Tiger Fund; 767.754 units 4,860 Midas Fund; 2,783.501 units 4,370 Montgomery Emerging Markets; 86.505 units 731 Latin America; 393.434 units 2,534 Emerging Asia; 924.802 units 9,215 Global Communication; 3,782.166 units 84,115 SML Cap Opportunity; 1,066.098 units 16,557 Growth; 5,111.339 units 112,398 International Growth; 1,063.417 units 19,184 Global Opportunities; 621.396 units 11,198 Mutual Series Shares Class Z; 281.663 units 5,873 Qualified Inc. CL Z; 8,065.223 units 142,996 Beacon Class Z; 1,620.054 units 22,875 Discovery Class Z; 11,217.658 units 201,469 European Class Z; 1,735.606 units 22,198 Neuberger & Berman Guardian Trust; 540.477 units 9,166 Partners Trust Inc; 508.388 units 9,187 Focus Trust Frmly S; 103.141 units 2,252 Nicholas Ltd Edition; 316.706 units 7,430 Northeast Investors Trust CTFS Ben Int; 10,687.687 units 111,900 White Oak Growth Stock; 468.248 units 17,498 Oppenheimer Strategic Inc CL C; 4,131.356 units 19,004 PBHG Growth; 7,956.740 units 177,754
(Continued) -18- SCHEDULE I ---------- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- NOVEMBER 30, 1998 -----------------
(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 ----------------- --------------------------------- ---- ----- Emerging Growth; 1,164.478 units $ $ 24,559 Large Cap Growth; 760.100 units 16,745 Select Equity; 4,409.248 units 92,506 Tech & Communication; 639.455 units 12,130 Small Cap Value; 601.410 units 7,872 Mid Cap Value; 174.934 units 2,502 Large Cap 20; 1,730.675 units 31,671 Core Growth; 1,519.384 units 17,108 PIMCO Long Term US Gov't; 5,098.937 units 66,594 Papp Amern Abroad Inc; 2,949.110 units 89,535 Payden & Rygel Growth & Income CL A; 1,432.126 units 21,625 T Rowe Price Health Sciences; 534.759 units 8,246 Putnam OTC & Emerging Growth CL A; 104.312 units 1,595 Robertson Stephens Value Plus & Growth; 1,009.356 units 26,909 Contrarian FD; 2,181.595 units 17,605 Growth & Income FU; 324.149 units 4,382 Microcap Growth FD; 1,690.146 units 23,138 Global Natural RES; 333.730 units 2,737 T Rowe Price Dividend Growth; 3,279.899 units 71,830 Equity Income; 3,965.736 units 109,772 Cap Appreciation; 967.133 units 15,078 Blue Chip Growth Inc; 267.438 units 7,700 Growth & Income; 273.276 units 7,594 Mid Cap Growth; 428.483 units 13,386 New American Growth; 201.005 units 9,343 New Era; 3,063.824 units 72,582 New Horizons FD Inc; 261.893 units 5,872 International Stock; 1,941.701 units 29,281 European Stock; 4,253.497 units 99,106 Int'l New Asia; 2,465.834 units 12,600 Science & Technology; 2,039.363 units 67,340 Spectrum Growth; 212.302 units 3,647 Rydex Nova Fund; 1,583.104 units 48,269 URSA Fund; 3,119.687 units 29,731 OTC Fund; 5,260.559 units 185,645 Juno Fund; 1,359.311 units 10,970 SSGA Small Cap Equity; 3,168.714 units 57,354 Emerging Markets; 711.387 units 5,748 Growth & Income; 751.388 units 14,990 Money Market; 1,975,972.000 units 1,975,972 S&P 500 Index; 12,580.446 units 265,447 Safeco Equity; 3,939.753 units 93,096 Growth; 1,412.587 units 31,402 Salomon Bros. Opportunity Income; 191.168 units 9,396 Scudder Mutual Income Gold; 1,242.440 units 7,803 Greater Europe Growth; 2,461.882 units 61,990 (Continued)
-19- SCHEDULE I ----------- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- NOVEMBER 30, 1998 -----------------
(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 ---------------- --------------------------------- ---- ----- Smith Breeden Equity Plus; 240.775 units $ $ 3,686 SoGen International; 1,263.994 units 29,540 Sound Shore FD Inc; 970.603 units 28,274 Stein Roe Income Trust; 1,540.041 units 15,015 Investment Trust Young Invest; 507.513 units 13,028 Investment Trust Cap Oppty; 972.503 units 25,509 Strong Corporate Bond Income; 9,634.490 units 108,099 Income High Yield bond; 7,245.623 units 81,803 Growth; 5,983.995 units 120,937 Growth 20; 450.461 units 5,960 Small Cap Value; 375.548 units 3,759 American Utilities; 326.854 units 5,465 Growth & Income; 1,820.642 units 36,267 Schafer Value; 615.876 units 35,438 Government Securities Income; 909.802 units 10,008 Templeton Developing Markets Trust; 336.150 units 3,600 Developing Markets Class II; 3,205.323 units 33,784 Foreign Class II; 1,988.807 units 16,825 Third Avenue Value FD; 2,181.771 units 68,180 Torray Fund; 2,061.171 units 71,131 Transamerica Premier Small Company; 2,749.530 units 51,416 Oak Value Fund; 586.601 units 15,146 Tweedy Browne Global Value Fund; 13,400.928 units 241,753 Amern Value Fund; 7,419.133 units 166,930 UAM FMA Small Company Portfolio; 253.252 units 3,849 US World Gold; 9,249.128 units 84,352 Gold Shares; 14,348.426 units 53,950 Value Line Aggressive Income; 1,861.042 units 13,772 Convertible; 523.935 units 6,743 Van Wagoner Income Micro-Cap; 212.239 units 2,091 Income Emerging Growth; 3,709.846 units 33,871 Income Mid-Cap; 496.803 units 5,266 Income Post Venture; 77.890 units 777 Vanguard US Growth Portfolio; 564.313 units 20,863 Int'l Growth Portfolio; 1,894.174 units 35,080 Growth & Income; 2,121.775 units 63,568 Equity Income; 509.305 units 12,875 Admiral Sht Term US Treasury; 14,594.426 units 150,031 Prime Cap; 2,316.532 units 105,425 Bond Index Total Market; 3,121.391 units 32,213 Windsor II Portfolio; 5,285.409 units 170,402 Asset Allocation Income; 1,415.555 units 35,814 Fixed Inc Sec L/T Portfolio; 8,090.874 units 76,297 GNMA Fixed Income Securities; 5,769.236 units 60,404 Preferred Stock; 2,901.354 units 30,261 (Continued)
-20- SCHEDULE I ----------- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- NOVEMBER 30, 1998 -----------------
(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 ---------------- --------------------------------- ---- ----- Index Trust S&P 500 Port; 6,520.181 units $ $ 707,375 Total Stock Market; 24,642.598 units 640,215 Value Index; 2,296.977 units 51,682 Growth Index; 7,362.286 units 217,850 Warburg Pincus Capital Appreciation; 1,868.979 units 38,856 Emerging Growth; 537.393 units 19,217 International Equity; 2,246.672 units 39,362 Emerging Markets; 214.309 units 1,468 Post Venture Capital; 264.067 units 4,589 Japan Growth; 608.037 units 5,855 Health Sciences; 503.356 units 7,621 Wasatch Growth; 714.527 units 13,304 Weitz Value; 1,138.808 units 33,003 Hickory; 1,039.261 units 30,242 Wright Equifund Hong Kong; 302.479 units 3,046 Equifund Netherlands; 3,100.645 units 35,409 Equifund Mexico; 309.119 units 1,456 Yacktman Fund; 655.703 units 8,911 ----------- $15,618,174 ===========
-21- SCHEDULE II ----------- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27d - SCHEDULE OF REPORTABLE (5%) TRANSACTIONS --------------------------------------------------- FOR THE YEAR ENDED NOVEMBER 30, 1998 ------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i) Current value Expense of asset on Identity of Purchase Selling Lease incurred with Cost transaction Net gain party involved Description of assets price price rental transaction of asset date or (loss) - -------------- ----------------------- ------------- -------- ------- ------------- ------------- -------------- --------- Caterpillar Inc. Common stock: Series of 69 purchases $110,430,584 $ $ $103,947 $110,430,584 $110,326,637 $ One sale 14,122 15 6,529 14,137 7,593
-22- 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 26, 1999 relating to the financial statements of the Caterpillar Inc. Employees' Investment Plan, which appears in this Form 11-K. /s/ PricewaterhouseCoopers LLP Peoria, Illinois May 26, 1999 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. Caterpillar Inc. Tax Deferred Savings Plan Financial Statements and Additional Information December 31, 1998 and 1997 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 plan benefits 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 of the Caterpillar Inc. Tax Deferred Savings Plan (the Plan) at December 31, 1998 and 1997, and the changes in net assets available for plan benefits for the years ended December 31, 1998 and 1997, 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 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 and of reportable (5%) 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 (ERISA). The fund information in the statements of net assets available for plan benefits and the statements 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. These supplemental schedules and fund information are the responsibility of the Plan's management. The supplemental schedules and 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/PricewaterhouseCoopers LLP Peoria, Illinois May 26, 1999 Exhibit A --------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION ------------------------------------------------------------------------- DECEMBER 31, 1998 ----------------- (Dollars in 000's)
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 ---- ---- ---------- ------ ----- -------- ------ ---------- ------ --- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $ $ $ $ $ $ $ $ $ Investments in Master Trust Net Assets 38,010 27,695 3,713 10,525 45,393 12,424 61,805 11,823 4,906 5,435 ----------- --------- ---------- ------- ------- -------- ------- ---------- ------ -------- Total net assets $ 38,010 $ 27,695 $ 3,713 $10,525 $45,393 $ 12,424 $61,805 $ 11,823 $4,906 $ 5,435 =========== ========= ========== ======= ======= ======== ======= ========== ====== ======== ----------------- Self- Loan Directed Fund Fund Total ---- ---- ----- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $ 1,311 $ 1,311 Investments in Master Trust Net Assets 5,411 227,140 -------- -------- -------- Total net assets $ 5,411 $ 1,311 $228,451 ======== ======== ========
(See notes to financial statements) -2- 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)
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 ---- ---- ---------- ------ ----- -------- ------- ---------- ------ --- 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 44,652 7,709 2,908 5,149 ----------- --------- ---------- ------ ------- -------- ------- ---------- ------ -------- Total net assets $ 39,455 $ 26,000 $ 2,968 $7,824 $40,985 $ 11,615 $44,652 $ 7,709 $2,908 $ 5,149 =========== ========= ========== ====== ======= ======== ======= ========== ====== ======== ---------------- Self- Loan Directed Fund Fund Total ---- ---- ----- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $ 1,098 $ 1,098 Investments in Master Trust Net Assets 5,230 194,495 ------ -------- -------- Total net assets $5,230 $ 1,098 $195,593 ====== ======== ========
(See notes to financial statements) -3- 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, 1998 ------------------------------------ (Dollars in 000's)
Fund Information -------------------------------------------------------------------------------------------------- Preferred Group of Mutual Funds ------------------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Inter- Asset Fixed Fund Fund Government Market Value national Growth Allocation Income ---- ---- ---------- ------ ----- -------- ------ ---------- ------ Participant contributions $ 4,072 $ 1,901 $ 260 $ 1,261 $ 3,609 $ 1,549 $ 4,610 $ 1,266 $ 578 ----------- ------- -------- ------- ------- ------- ------- ------- ------ Investment income: Net appreciation in fair value of registered investment companies Plan interest in net investment income of Master Trust (Note 4) (676) 1,645 148 503 5,590 1,146 15,789 2,328 240 ----------- ------- -------- ------- ------- ------- ------- ------- ------ Net investment income (676) 1,645 148 503 5,590 1,146 15,789 2,328 240 ----------- ------- -------- ------- ------- ------- ------- ------- ------ Withdrawals (2,072) (2,099) (127) (1,138) (3,075) (642) (2,686) (442) (226) Transfers (to)/from other plans, net (373) (216) (19) (46) (225) (77) (309) (12) (3) Interfund transfers, net (2,396) 464 483 2,121 (1,491) (1,167) (251) 974 1,409 ----------- ------- -------- ------- ------- ------- ------- ------- ------ Withdrawals and transfers, net (4,841) (1,851) 337 937 (4,791) (1,886) (3,246) 520 1,180 ----------- ------- -------- ------- ------- ------- ------- ------- ------ Increase (decrease) in net assets (1,445) 1,695 745 2,701 4,408 809 17,153 4,114 1,998 Net assets: Beginning of year 39,455 26,000 2,968 7,824 40,985 11,615 44,652 7,709 2,908 ----------- ------- -------- ------- ------- ------- ------- ------- ------ End of year $ 38,010 $27,695 $ 3,713 $10,525 $45,393 $12,424 $61,805 $11,823 $4,906 =========== ======= ======== ======= ======= ======= ======= ======= ====== --------------------------- ------ Self- Small Loan Directed Cap Fund Fund Total --- ---- ---- ----- Participant contributions $1,162 $ $ $ 20,268 ------ ------ -------- -------- Investment income: Net appreciation in fair value of registered investment companies 140 140 Plan interest in net investment income of Master Trust (Note 4) (283) 461 26,891 ------ ------ -------- -------- Net investment income (283) 461 140 27,031 ------ ------ -------- -------- Withdrawals (116) (243) (12,866) Transfers (to)/from other plans, net (146) (38) (111) (1,575) Interfund transfers, net (331) 1 184 ------ ------ -------- -------- Withdrawals and transfers, net (593) (280) 73 (14,441) ------ ------ -------- -------- Increase (decrease) in net assets 286 181 213 32,858 Net assets: Beginning of year 5,149 5,230 1,098 195,593 ------ ------ -------- -------- End of year $5,435 $5,411 $ 1,311 $228,451 ====== ====== ======== ========
(See notes to financial statements) -4- 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)
Fund Information -------------------------------------------------------------------------------------------------- Preferred Group of Mutual Funds ------------------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Inter- Asset Fixed Fund Fund Government Market Value national Growth Allocation Income ---- ---- ---------- ------ ----- -------- ------ ---------- ------ Participant contributions $ 3,107 $ 1,661 $ 280 $ 1,271 $ 3,273 $ 1,727 $ 4,143 $1,120 $ 487 ------- ------- ------ ------- ------- ------- ------- ------ ------ Investment income: Net appreciation in fair value of registered investment companies 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 ------- ------- ------ ------- ------- ------- ------- ------ ------ Net investment income 5,713 2,145 177 479 8,930 859 10,631 1,290 211 ------- ------- ------ ------- ------- ------- ------- ------ ------ Withdrawals (1,041) (1,774) (90) (857) (1,512) (295) (1,341) (156) (55) Transfers (to)/from other plans, net (177) (171) (19) (173) (399) (114) (348) (53) (33) Interfund transfers, net 10,621 (3,519) (345) (3,412) (902) (2,157) (1,820) (310) (238) ------- ------- ------ ------- ------- ------- ------- ------ ------ Withdrawals and transfers, net 9,403 (5,464) (454) (4,442) (2,813) (2,566) (3,509) (519) (326) ------- ------- ------ ------- ------- ------- ------- ------ ------ Increase (decrease) in net assets 18,223 (1,658) 3 (2,692) 9,390 20 11,265 1,891 372 Net assets: Beginning of year 21,232 27,658 2,965 10,516 31,595 11,595 33,387 5,818 2,536 ------- ------- ------ ------- ------- ------- ------- ------ ------ End of year $39,455 $26,000 $2,968 $ 7,824 $40,985 $11,615 $44,652 $7,709 $2,908 ======= ======= ====== ======= ======= ======= ======= ====== ====== ---------------------- ------ Self- Small Loan Directed Cap Fund Fund Total --- ---- ---- ----- Participant contributions $ 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) 814 415 31,664 ------ ------ ------- -------- Net investment income 814 415 102 31,766 ------ ------ ------- -------- Withdrawals (92) (133) (7,346) Transfers (to)/from other plans, net (10) (57) 2 (1,552) Interfund transfers, net 1,182 594 306 ------ ------ ------- -------- Withdrawals and transfers, net 1,080 404 308 (8,898) ------ ------ ------- -------- Increase (decrease) in net assets 2,631 819 410 40,674 Net assets: Beginning of year 2,518 4,411 688 154,919 ------ ------ ------- -------- End of year $5,149 $5,230 $ 1,098 $195,593 ====== ====== ======= ========
(See notes to financial statements) -5- 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 percent. 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 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 1998) for participants earning in excess of $80,000 or (b) $10,000 for participants earning less than $80,000. 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. -6- 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, including a self-directed fund option which allows 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- 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 the Caterpillar Common Stock Fund. The unit values assigned by the Plan reflect the current values of the individual fund. Total units held (in thousands) by the Plan and their respective unit values at each month end are as follows:
Units Unit value Units Unit value ----- ---------- ----- ---------- January 1,154 33.62 July 1,221 34.00 February 1,145 38.04 August 1,214 29.78 March 1,143 38.36 September 1,198 31.33 April 1,139 39.63 October 1,183 31.63 May 1,136 38.30 November 1,095 34.54 June 1,201 36.92 December 1,177 32.29
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 options available to the participants through the Preferred Group of Mutual Funds are 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 and the Preferred Short-Term Government Fund; however, during the period November 1, 1997 through March 31, 1998, the Preferred Short-Term Government Fund was managed by an unrelated third party. 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. -8- The percentage of the Plan's participation in the Master Trust was determined based on the December 31, 1998 and 1997 market values of net assets, as accumulated by the Trustee for the investment funds of each plan. At December 31, 1998 and 1997, 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:
1998 1997 ----- ----- Caterpillar Inc. Common Stock Fund 10.64% 11.64% Preferred Stable Principal Fund 25.88% 27.08% Preferred Short-Term Government Fund 19.86% 20.63% Preferred Money Market Fund 11.79% 12.44% Preferred Value Fund 16.46% 16.98% Preferred International Fund 13.95% 14.03% Preferred Growth Fund 16.81% 17.21% Preferred Asset Allocation Fund 12.41% 13.38% Preferred Fixed Income Fund 12.38% 12.43% Preferred Small Cap Fund 13.00% 11.96% Loan Fund 22.63% 24.94%
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 Master Trust as of December 31, 1998 and 1997. -9- CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN -------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS --------------------------------------------- DECEMBER 31, 1998 ----------------- (Dollars in 000's)
Preferred Group of Mutual Funds --------------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Asset Fund Fund Government Market Value International Growth Allocation ---- ---- ---------- ------ ----- ------------- ------ ---------- Investments, at fair value: Cash and cash equivalents $ 12,191 $ $ $ $ $ $ $ Common stock 343,517 Registered investment companies 106,280 18,597 86,354 274,488 88,528 366,575 94,532 Participant loans -------- -------- ------- ------- -------- ------- -------- ------- Total investments 355,708 106,280 18,597 86,354 274,488 88,528 366,575 94,532 Dividend and interest receivable 93 Transfers receivable from EIP 1 2,472 53 Contributions receivable 957 427 82 357 1,347 640 1,770 477 Interfund transfers receivable/(payable), net (2,111) 206 7 2,438 (204) (194) (831) 235 Other receivable/(payable), net 279 108 15 50 181 64 233 41 -------- -------- ------- ------- -------- ------- -------- ------- Net assets $357,398 $107,021 $18,701 $89,252 $275,812 $89,038 $367,747 $95,285 ======== ======== ======= ======= ======== ======= ======== ======= ---------------- Fixed Small Loan Income Cap Fund Total ------- ------- -------- ---------- Investments, at fair value: Cash and cash equivalents $ $ $ $ 12,191 Common stock 343,517 Registered investment companies 39,316 41,046 1,115,716 Participant loans 24,686 24,686 ------- ------- ------- ---------- Total investments 39,316 41,046 24,686 1,496,110 Dividend and interest receivable 93 Transfers receivable from EIP 1 2,525 Contributions receivable 188 403 6,648 Interfund transfers receivable/(payable), net 122 332 Other receivable/(payable), net 20 36 (768) 259 ------- ------- ------- ---------- Net assets $39,646 $41,817 $23,918 $1,505,635 ======= ======= ======= ==========
-10- CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN -------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS --------------------------------------------- DECEMBER 31, 1997 ----------------- (Dollars in 000's)
Preferred Group of Mutual Funds ------------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Asset Fund Fund Government Market Value International Growth Allocation ----------- ---------- ---------- ------- -------- -------------- -------- ---------- 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 58,253 Participant loans -------- ------- ------- ------- -------- ------- -------- ------- Total investments 335,388 95,451 14,293 61,952 239,793 82,881 257,136 58,253 Dividend and interest receivable 70 Transfers receivable from EIP 1 2,417 6 Contributions receivable 980 453 80 330 1,271 669 1,637 405 Interfund transfer receivable/(payable), net 32 (28) 526 124 (894) 382 10 Other receivable/(payable), net 164 117 14 95 167 104 253 40 -------- ------- ------- ------- -------- ------- -------- ------- Net assets $339,051 $95,993 $14,387 $62,909 $241,355 $82,760 $259,408 $58,708 ======== ======= ======= ======= ======== ======= ======== ======= ---------------- Fixed Small Loan Income Cap Fund Total ------ --- ---- ----- Investments, at fair value: Cash and cash equivalents $ $ $ $ 14,088 Common stock 321,300 Registered investment companies 23,844 42,626 876,229 Participant loans 23,247 23,247 ------- ------- ------- ---------- Total investments 23,844 42,626 23,247 1,234,864 Dividend and interest receivable 70 Transfers receivable from EIP 1 2,423 Contributions receivable 138 364 6,327 Interfund transfer receivable/(payable), net (190) 38 Other receivable/(payable), net 17 33 (836) 168 ------- ------- ------- ---------- Net assets $23,809 $43,061 $22,411 $1,243,852 ======= ======= ======= ==========
-11- CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN -------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS -------------------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1998 ------------------------------------ (Dollars in 000's)
Preferred Group of Mutual Funds ------------------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Asset Fund Fund Government Market Value International Growth Allocation ---- ---- ---------- ------ ----- ------------- ------ ---------- Investment income:- Interest $ 865 $ $ $ $ $ $ $ Dividends 7,756 Net appreciation in fair value of: Common stock (15,546) Registered investment companies 6,343 738 4,274 33,788 8,120 94,275 18,152 -------- -------- ------- -------- -------- ------- -------- ------- Net investment income (6,925) 6,343 738 4,274 33,788 8,120 94,275 18,152 -------- -------- ------- -------- -------- ------- -------- ------- Contributions to all plans 12,855 5,414 1,057 4,529 20,052 8,626 24,423 8,296 -------- -------- ------- -------- -------- ------- -------- ------- Withdrawals from all plans (18,357) (8,772) (1,053) (15,186) (11,440) (3,439) (10,403) (3,516) -------- -------- ------- -------- -------- ------- -------- ------- Transfers from EIP 1 82,952 1,191 -------- -------- ------- -------- -------- ------- -------- ------- Interfund transfers, net (52,178) 8,043 3,572 31,535 (7,943) (7,029) 44 13,645 -------- -------- ------- -------- -------- ------- -------- ------- Increase (decrease) in net assets 18,347 11,028 4,314 26,343 34,457 6,278 108,339 36,577 Net assets: Beginning of year 339,051 95,993 14,387 62,909 241,355 82,760 259,408 58,708 -------- -------- ------- -------- -------- ------- -------- ------- End of year $357,398 $107,021 $18,701 $ 89,252 $275,812 $89,038 $367,747 $95,285 ======== ======== ======= ======== ======== ======= ======== ======= ----------------- Fixed Small Loan Income Cap Fund Total ------ ----- ---- ----- Investment income:- Interest $ $ $ 2,081 $ 2,946 Dividends 7,756 Net appreciation in fair value of: Common stock (15,546) Registered investment companies 2,013 (2,180) 165,523 ------- -------- ------- ---------- Net investment income 2,013 (2,180) 2,081 160,679 ------- -------- ------- ---------- Contributions to all plans 3,001 6,590 94,843 ------- -------- ------- ---------- Withdrawals from all plans (1,911) (1,709) (659) (76,445) ------- -------- ------- ---------- Transfers from EIP 1 84,143 ------- -------- ------- ---------- Interfund transfers, net 12,734 (3,945) 85 (1,437) ------- -------- ------- ---------- Increase (decrease) in net assets 15,837 (1,244) 1,507 261,783 Net assets: Beginning of year 23,809 43,061 22,411 1,243,852 ------- -------- ------- ---------- End of year $39,646 $ 41,817 $23,918 $1,505,635 ======= ======== ======= ==========
-12- 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)
Preferred Group of Mutual Funds -------------------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Asset Fund Fund Government Market Value International Growth Allocation ------------ ---------- ----------- --------- --------- -------------- --------- ----------- 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 ======== ======== ======= ======== ======== ======== ======== ======= ------------------- 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 ======= ======= ======= ==========
-13- ADDITIONAL INFORMATION ---------------------- SCHEDULE I ----------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- DECEMBER 31, 1998 -----------------
(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 ----------------- --------------------------------- ----- ----- * Caterpillar Inc. 401(k) Master Trust $ $227,140,000 ============ ============ Acorn International; 90.79 units $ $ 1,890 American Century Benham Target Mat TR20 20; 19.99 units 720 Income & Growth; 497.78 units 14,560 Global Natural Resource; 580.59 units 6,143 Utilities; 78.12 units 1,247 20/th/ Century Select; 26.80 units 1,270 20/th/ Century Vista; 423.30 units 4,508 Rushmore American Gas Index; 124.04 units 2,230 Baron Asset; 392.45 units 19,834 Growth & Inc; 189.37 units 4,710 Small Cap FD; 993.05 units 10,467 Brinson US equity; 122.55 units 2,393 Columbia Real Estate Equity; 54.79 units 865 Dreyfus Asset Allocation Fund; 374.97 units 5,058 Small Company Value Fund; 163.99 units 3,239 FBR Small Cap Financial Fund; 113.75 units 1,619 Financial Services Fund; 109.85 units 1,825 Fidelity Worldwide; 249.01 units 4,116 Small Cap Stock; 48.43 units 431 Equity Income II; 276.18 units 8,288 Asset Manager; 304.59 units 5,297 Utilities; 105.07 units 2,435 Fund; 155.36 units 5,700 Government Securities; 1,057.15 units 10,719 Dividend Growth; 236.92 units 6,807 Select Technology; 42.66 units 3,364 Energy Service; 1,289.49 units 18,659 Health Care; 18.26 units 2,497 Utilities Growth; 186.06 units 11,339 Insurance; 49.28 units 2,134 Regional Banks; 34.10 units 1,462 Medical Delivery; 86.58 units 2,022 Retailing; 42.34 units 2,745 Telecomm; 48.56 units 2,931 Electronics; 104.44 units 4,863 Computers; 59.34 units 4,018 Fidelity Value; 156.23 units 7,241 Firsthand Medical Specialists; 481.45 units 4,400 Technology Leaders; 606.70 units 10,848 Technology Innovator; 24.39 units 382 Fremont US Micro Capital; 33.88 units 707 Gabelli Westwood Mighty Mites FD; 25.16 units 273 Guiness Flight China & Hong Kong; 635.80 units 6,848 Wired Index; 17.73 units 249 Oakmark Fund; 390.61 units 13,992 Select; 186.08 units 3,636 Hotchkis & Wiley International; 274.92 units 6,400 The Internet Fund; 41.05 units 645 Invesco Strategic Health Sciences; 92.85 units 5,668 Financial Services; 181.34 units 5,292
(Continued) -14- SCHEDULE I ---------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- DECEMBER 31, 1998 -----------------
(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 ---------------- --------------------------------- ---- ------ Janus Fund; 248.59 units $ $ 8,365 Inv't Growth & Income; 169.89 units 4,944 Inv't Worldwide; 2,681.43 units 126,992 Inv't Twenty; 136.41 units 7,271 Special Situations; 87.79 units 1,528 Olympus; 74.86 units 2,065 High Yield Bond; 0.30 units 3 Inv't Overseas; 512.08 units 10,283 Inv't Mercury; 1,137.46 units 27,424 Lexington Troika Dialog Russia Income; 242.25 units 640 Longleaf Partners; 21.34 units 520 Realty; 24.45 units 356 Midas Fund; 4,037.35 units 6,096 Montgomery Asset Allocation; 462.58 units 6,966 Growth; 42.79 units 882 Emerging Asia; 267.06 units 2,118 Mutual Series Beacon Class Z; 1,601.36 units 21,010 Neuberger & Berman Genesis Trust; 898.23 units 18,270 Partners Trust Inc; 449.11 units 8,115 Millennium Trust; 21.70 units 293 PBHG Growth; 246.22 units 6,288 Tech & Communications; 336.76 units 7,223 T Rowe Price Health Sciences; 878.77 units 14,069 Robertson Stephens Value Plus & Growth; 308.27 units 7,990 T Rowe Price Dividend Growth; 486.07 units 10,698 Equity Income; 1,506.38 units 39,648 Mid Cap Growth; 121.99 units 4,158 New Era; 448.37 units 8,869 European Stock; 1,091.92 units 23,771 Int'l New Asia; 3,454.23 units 17,306 Royce Total Return; 182.68 units 1,381 SSGA Small Cap Equity; 47.52 units 922 Money Market; 249,560.00 units 249,560 Safeco Growth; 142.94 units 3,245 State ST Research Aurora Class A; 94.76 units 1,576 Strong Corporate Bond Income; 1,725.99 units 19,417 American Utilities; 220.56 units 3,708 Growth & Income; 159.22 units 3,450 Limited Resources; 327.16 units 2,349 Common stock; 121.12 units 2,551 UAM FMA Small Company Portfolio; 30.00 units 464 US World Gold; 297.13 units 2,787 Vanguard US Growth Portfolio; 285.57 units 10,706 Int'l Growth Portfolio; 518.24 units 9,727 Prime Cap; 118.46 units 5,646 Wellesley Income; 656.15 units 14,514 GNMA Fixed Income Securities; 6,392.65 units 66,803 Short Term Treasury; 1,037.51 units 10,759 Fixed Income Inter Term Co; 1,460.91 units 14,653 Preferred Stock; 465.96 units 4,753 Index Trust S&P 500 Port; 361.48 units 41,191 Total Stock Market; 2,603.08 units 71,376 Growth Index; 3,994.33 units 126,500 Warburg Pincus Global Telecom; 9.86 units 283 ---------- $1,311,468 ==========
-15- SCHEDULE II ----------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27d - SCHEDULE OF REPORTABLE (5%) TRANSACTIONS --------------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1998 ------------------------------------
(a) (b) (c) (d) (e) (f) (g) Expense incurred Identity of Purchase Selling Lease with Cost party involved Description of Assets Price Price Rental transaction of asset -------------- --------------------- ----- ----- ------ ----------- -------- Janus Inv't Worldwide: Purchase $ 70,737 $ $ $ $ 70,737 Sale 28,782 Oakmark Select Fund: Purchase 13,139 13,139 Sale 65,741 SSGA Money Market Fund: Purchase 759,015 759,015 Sale 688,546 UAM FMA Small Company Portfolio: Purchase 44,003 44,003 Sale 37,125 Vanguard Growth and Income: Purchase 59,893 59,893 Sale 61,110 Index Trust - S&P 500 Portfolio: Purchase 56,070 56,070 Sale 98,822 Vanguard/Windsor II Fund: Sale 71,534 Growth Index: Purchase 89,300 89,300 (a) (b) (h) (i) Current value Of asset on Identity of Transaction Net gain party involved Description of Assets date or (loss) -------------- --------------------- ---- -------- Janus Inv't Worldwide: Purchase $ 70,737 $ Sale 28,782 Oakmark Select Fund: Purchase 13,139 Sale 65,741 SSGA Money Market Fund: Purchase 759,015 Sale 688,546 UAM FMA Small Company Portfolio: Purchase 44,003 Sale 37,125 Vanguard Growth and Income: Purchase 59,893 Sale 61,110 Index Trust - S&P 500 Portfolio: Purchase 56,070 Sale 98,822 Vanguard/Windsor II Fund: Sale 71,534 Growth Index: Purchase 89,300
-16- 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, 1999 relating to the financial statements of the Caterpillar Inc. Tax Deferred Savings Plan, which appears in this Form 11-K. /s/PricewaterhouseCoopers LLP Peoria, Illinois May 26, 1999 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 C. Solar Turbines Incorporated Savings and Investment Plan Financial Statements and Additional Information December 31, 1998 and 1997 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 plan benefits 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 of the Solar Turbines Incorporated Savings and Investment Plan (the Plan) at December 31, 1998 and 1997, and the changes in net assets available for plan benefits for the years ended December 31, 1998 and 1997, 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 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 and of reportable (5%) 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 (ERISA). The fund information in the statements of net assets available for plan benefits and the statements 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. These supplemental schedules and fund information are the responsibility of the Plan's management. The supplemental schedules and 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/PricewaterhouseCoopers LLP Peoria, Illinois May 26, 1999 Exhibit A --------- SOLAR TURBINES INCORPORATED --------------------------- SAVINGS AND INVESTMENT PLAN --------------------------- STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION ------------------------------------------------------------------------- DECEMBER 31, 1998 ----------------- (Dollars in 000's)
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 ---- ---- ---------- ------ ----- -------- ------ ---------- ------ --- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $ $ $ $ $ $ $ $ $ Investments in Master Trust Net Assets 8,620 2,605 436 1,680 3,656 1,035 5,907 722 242 307 ------ ------ ------- ------ ------- ------ ------ ------ ----- ----- Total net assets $8,620 $2,605 $ 436 $1,680 $3,656 $1,035 $5,907 $ 722 $ 242 $ 307 ====== ====== ====== ====== ====== ====== ====== ====== ===== ===== ------------------- Self- Loan Directed Fund Fund Total ------ ---- ----- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $447 $ 447 Investments in Master Trust Net Assets 2,063 27,273 ------ ---- ------- Total net assets $2,063 $447 $27,720 ====== ==== =======
(See notes to financial statements) -2- 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)
Fund Information ------------------------------------------------------------------------------------------------- Preferred Group of Mutual Funds ---------------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Inter- Asset Fixed Fund Fund Government Market Value national Growth Allocation Income ---- ---- ---------- ------ ------ -------- ------ ---------- ------ 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 -------- ------- ------ ------ ------ ------ ----- ------- ----- Total net assets $ 7,378 $ 2,669 $ 399 $1,339 $3,300 $ 936 $4,336 $ 468 $ 159 ======== ======= ====== ====== ====== ====== ====== ======= ===== ------------------------------ -------- Self- Small Loan Directed Cap Fund Fund Total --- ---- ---- ----- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $ $ 84 $ 84 Investments in Master Trust Net Assets 253 1,609 22,846 ------ ------ ----- -------- Total net assets $ 253 $1,609 $ 84 $22,930 ====== ====== ===== ========
(See notes to financial statements) -3- Exhibit B --------- SOLAR TURBINES INCORPORATED --------------------------- SAVINGS AND INVESTMENT PLAN --------------------------- STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND ------------------------------------------------------------------------ INFORMATION ----------- DECEMBER 31, 1998 ----------------- (Dollars in 000's)
Fund Information -------------------------------------------------------------------------------------------------- Preferred Group of Mutual Funds ------------------------------------------------------------------------------------ Caterpillar Common Stable Stock Principal Short-term Money Inter- Asset Fixed Fund Fund Government Market Value national Growth Allocation Income ------------ ---------- ----------- ------- ------- --------- ------- ----------- ------- Participant contributions $1,659 $ 257 $ 48 $ 274 $ 492 $ 185 $ 726 $101 $ 30 ------ ------ ---- ------ ------ ------ ------ ---- ---- Investment income: Net appreciation in fair value of registered investment companies Plan interest in net investment gain of Master Trust (Note 4) 44 163 18 84 463 89 1,537 138 11 ------ ------ ---- ------ ------ ------ ------ ---- ---- Withdrawals (449) (330) (30) (104) (85) (22) (196) (9) Transfers (to)/from other plans, net (108) (49) 3 (35) (77) (26) (208) (50) (35) Interfund transfers, net 96 (105) (2) 122 (437) (127) (288) 74 77 ------ ------ ---- ------ ------ ------ ------ ---- ---- Withdrawals and transfers, net (461) (484) (29) (17) (599) (175) (692) 15 42 ------ ------ ---- ------ ------ ------ ------ ---- ---- Increase (decrease) in net assets 1,242 (64) 37 341 356 99 1,571 254 83 Net assets: Beginning of year 7,378 2,669 399 1,339 3,300 936 4,336 468 159 ------ ------ ---- ------ ------ ------ ------ ---- ---- End of year $8,620 $2,605 $436 $1,680 $3,656 $1,035 $5,907 $722 $242 ====== ====== ==== ====== ====== ====== ====== ==== ==== ------------------------------- --------- Self- Small Loan Directed Cap Fund Fund Total --------- ------- ---- -------- Participant contributions $119 $ $ $ 3,891 ---- ------ ---- ------- Investment income: Net appreciation in fair value of registered investment companies 19 19 Plan interest in net investment gain of Master Trust (Note 4) (22) 168 2,693 ---- ------ ---- ------- Withdrawals (9) (15) (1,249) Transfers (to)/from other plans, net (8) (55) 84 (564) Interfund transfers, net (26) 356 260 ---- ------ ---- ------- Withdrawals and transfers, net (43) 286 344 (1,813) ---- ------ ---- ------- Increase (decrease) in net assets 54 454 363 4,790 Net assets: Beginning of year 253 1,609 84 22,930 ---- ------ ---- ------- End of year $307 $2,063 $447 $27,720 ==== ====== ==== =======
(See notes to financial statements) -4- 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)
Fund Information ---------------------------------------------------------------------------------------------- Preferred Group of Mutual Funds --------------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Inter- Asset Fixed Fund Fund Government Market Value national Growth Allocation Income ----------- ---------- ----------- ------- ------- -------- ------ ---------- ------ Participant contributions $ 938 $ 297 $ 44 $ 247 $ 425 $ 187 $ 587 $ 90 $ 32 ------ ------ ----- ------ ------ ----- ------ ----- ----- 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 ------ ------ ----- ------ ------ ----- ------ ----- ----- Withdrawals (158) (128) (49) (58) (187) (23) (227) (50) (38) Transfers (to)/from other plans, net (131) 16 (4) (52) 94 (1) (19) (4) Interfund transfers, net 1,628 (631) (60) (595) (280) (189) (220) (79) (68) ------ ------ ----- ------ ------ ----- ------ ----- ----- Withdrawals and transfers, net 1,339 (743) (113) (705) (373) (213) (466) (133) (106) ------ ------ ----- ------ ------ ----- ------ ----- ----- Increase (decrease) in net assets 3,382 (269) (44) (378) 786 40 1,135 48 (58) Net assets: Beginning of year 3,996 2,938 443 1,717 2,514 896 3,201 420 217 ------ ------ ----- ------ ------ ----- ------ ----- ----- End of year $7,378 $2,669 $ 399 $1,339 $3,300 $ 936 $4,336 $ 468 $ 159 ====== ====== ===== ====== ====== ===== ====== ===== ===== ----------------------------- ------ Self- Small Loan Directed Cap Fund Fund Total ------ ------ -------- --------- Participant contributions $ 51 $ $ $ 2,898 ---- ------ ---- ------- Investment income: Net appreciation in fair value of registered investment companies 2 2 Plan interest in net investment gain of Master Trust (Note 4) 35 117 3,460 ---- ------ ---- ------- Withdrawals (1) (36) (955) Transfers (to)/from other plans, net 1 (13) (8) (121) Interfund transfers, net 37 398 59 ---- ------ ---- ------- Withdrawals and transfers, net 37 349 51 (1,076) ---- ------ ---- ------- Increase (decrease) in net assets 123 466 53 5,284 Net assets: Beginning of year 130 1,143 31 17,646 ---- ------ ---- ------- End of year $253 $1,609 $84 $22,930 ==== ====== ==== =======
(See notes to financial statements) -5- 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 subsidiary 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 percent. 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 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 1998) for participants earning in excess of $80,000 or (b) $10,000 for participants earning less than $80,000. 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. -6- 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, including a self-directed fund option which allows 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- 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 the Caterpillar Common Stock Fund. The unit values assigned by the Plan reflect the current values of the individual funds. Total units held (in thousands) by the Plan and their respective unit values at each month end are as follows:
Units Unit value Units Unit value ---------- -------------- ---------- -------------- January 217 33.62 July 233 34.00 February 214 38.04 August 230 29.78 March 215 38.36 September 229 31.33 April 212 39.63 October 238 31.63 May 212 38.30 November 214 34.54 June 216 36.92 December 267 32.29
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 options available to the participants through the Preferred Group of Mutual Funds are 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 and the Preferred Short-term Government Fund; however, during the period November 1, 1997 through March 31, 1998, the Preferred Short-Term Government Fund was managed by an unrelated third party. 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. -8- The percentage of the Plan's participation in the Master Trust was determined based on the December 31, 1998 and 1997 market values of net assets, as accumulated by the Trustee for the investment funds of each plan. At December 31, 1998 and 1997, 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:
1998 1997 ----- ----- Caterpillar Inc. Common Stock Fund 2.41% 2.18% Preferred Stable Principal Fund 2.43% 2.78% Preferred Short-term Government Fund 2.33% 2.78% Preferred Money Market Fund 1.88% 2.13% Preferred Value Fund 1.33% 1.37% Preferred International Fund 1.16% 1.13% Preferred Growth Fund 1.61% 1.67% Preferred Asset Allocation Fund .76% .81% Preferred Fixed Income Fund .61% .68% Preferred Small Cap Fund .73% .59% Loan Fund 8.54% .77%
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 Master Trust as of December 31, 1998 and 1997. -9- SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN --------------------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS --------------------------------------------- DECEMBER 31, 1998 ----------------- (Dollars in 000's)
Preferred Group of Mutual Funds ----------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Fund Fund Government Market Value International Growth ---- ---- ---------- ------ ----- ------------- ------ Investments, at fair value: Cash and cash equivalents $ 12,191 $ $ $ $ $ $ Common stock 343,517 Registered investment companies 106,280 18,597 86,354 274,488 88,528 366,575 Participant loans -------- -------- ---------- ------- -------- --------- -------- Total investments 355,708 106,280 18,597 86,354 274,488 88,528 366,575 Dividend and interest receivable 93 Transfers receivable from EIP 1 2,472 53 Contributions receivable 957 427 82 357 1,347 640 1,770 Interfund transfers receivable/(payable), net (2,111) 206 7 2,438 (204) (194) (831) Other receivable/(payable), net 279 108 15 50 181 64 233 -------- -------- ---------- ------- -------- --------- -------- Net assets $357,398 $107,021 $ 18,701 $89,252 $275,812 $ 89,038 $367,747 ======== ======== ========== ======= ======== ========= ======== ----------------------------- Asset Fixed Small Loan Allocation Income Cap Fund Total ---------- ------ ----- ---- ----- Investments, at fair value: Cash and cash equivalents $ $ $ $ $ 12,191 Common stock 343,517 Registered investment companies 94,532 39,316 41,046 1,115,716 Participant loans 24,686 24,686 ---------- ------- ------- -------- --------- Total investments 94,532 39,316 41,046 24,686 1,496,110 Dividend and interest receivable 93 Transfers receivable from EIP 1 2,525 Contributions receivable 477 188 403 6,648 Interfund transfers receivable/(payable), net 235 122 332 Other receivable/(payable), net 41 20 36 (768) 259 ---------- ------- ------- --------- ---------- Net assets $ 95,285 $39,646 $41,817 $ 23,918 $1,505,635 ========== ======= ======= ========= ==========
-10- SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN --------------------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS --------------------------------------------- DECEMBER 31, 1997 ----------------- (Dollars in 000's)
Preferred Group of Mutual Funds ----------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Fund Fund Government Market Value International Growth --------- ----------- ---------- -------- -------- ------------- --------- 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 Interfund transfer receivable/(payable), net 32 (28) 526 124 (894) 382 Other receivable/(payable), net 164 117 14 95 167 104 253 -------- ---------- --------- ------- -------- ------------- --------- Net assets $339,051 $ 95,993 $ 14,387 $62,909 $241,355 $ 82,760 $ 259,408 ======== ========== ========= ======= ======== ============= ========= ---------------------------- Asset Fixed Small Loan Allocation Income Cap Fund Total ---------- ------- -------- ------- ---------- 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 ---------- ------- -------- ------- ---------- 58,253 23,844 42,626 23,247 1,234,864 Total investments Dividend and interest receivable 70 Transfers receivable from EIP 1 2,423 Contributions receivable 405 138 364 6,327 Interfund transfer receivable/(payable), net 10 (190) 38 Other receivable/(payable), net 40 17 33 (836) 168 ---------- ------- -------- ------- ---------- $ 58,708 $23,809 $ 43,061 $22,411 $1,243,852 Net assets ========== ======= ======== ======= ==========
-11- SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN --------------------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS -------------------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1998 ------------------------------------ (Dollars in 000's)
Preferred Group of Mutual Funds --------------------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Asset Fund Fund Government Market Value International Growth Allocation ---- ---- ---------- ------ ----- ------------- ------ ---------- Investment income:- Interest $ 865 $ $ $ $ $ $ $ Dividends 7,756 Net appreciation in fair value of: Common stock ( 15,546) Registered investment companies 6,343 738 4,274 33,788 8,120 94,275 18,152 -------- -------- ------- -------- -------- ------- -------- ------- Net investment income (6,925) 6,343 738 4,274 33,788 8,120 94,275 18,152 -------- -------- ------- -------- -------- ------- -------- ------- Contributions to all plans 12,855 5,414 1,057 4,529 20,052 8,626 24,423 8,296 -------- -------- ------- -------- -------- ------- -------- ------- Withdrawals from all plans (18,357) (8,772) (1,053) (15,186) (11,440) (3,439) (10,403) (3,516) -------- -------- ------- -------- -------- ------- -------- ------- Transfers from EIP 1 82,952 1,191 -------- -------- ------- -------- -------- ------- -------- ------- Interfund transfers, net (52,178) 8,043 3,572 31,535 (7,943) (7,029) 44 13,645 -------- -------- ------- -------- -------- ------- -------- ------- Increase (decrease) in net assets 18,347 11,028 4,314 26,343 34,457 6,278 108,339 36,577 Net assets: Beginning of year 339,051 95,993 14,387 62,909 241,355 82,760 259,408 58,708 -------- -------- ------- -------- -------- ------- -------- ------- End of year $ 357,398 $107,021 $18,701 $ 89,252 $275,812 $89,038 $367,747 $95,285 ======== ======== ======= ======== ======== ======= ======== ======= --------------- Fixed Small Loan Income Cap Fund Total ------ --- ---- ----- Investment income:- Interest $ $ $ 2,081 $ 2,946 Dividends 7,756 Net appreciation in fair value of: Common stock (15,546) Registered investment companies 2,013 (2,180) 165,523 ------- ------- ------- ---------- Net investment income 2,013 (2,180) 2,081 160,679 ------- ------- ------- ---------- Contributions to all plans 3,001 6,590 94,843 ------- ------- ------- ---------- Withdrawals from all plans (1,911) (1,709) (659) (76,445) ------- ------- ------- ---------- Transfers from EIP 1 84,143 ------- ------- ------- ---------- Interfund transfers, net 12,734 (3,945) 85 (1,437) ------- ------- ------- ---------- Increase (decrease) in net assets 15,837 (1,244) 1,507 261,783 Net assets: Beginning of year 23,809 43,061 22,411 1,243,852 ------- ------- ------- ---------- End of year $39,646 $41,817 $23,918 $1,505,635 ======= ======= ======= ==========
-12- 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)
Preferred Group of Mutual Funds ----------------------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Asset Fund Fund Government Market Value International Growth Allocation ---- ---- ---------- ------ ----- ------------- ------ ---------- 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 ======== ======== ======= ======== ======== ======== ======== ======= --------------- 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 ======= ======= ======= ==========
-13- ADDITIONAL INFORMATION ---------------------- SCHEDULE I ---------- SOLAR TURBINES INCORPORATED --------------------------- SAVINGS AND INVESTMENT PLAN --------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- DECEMBER 31, 1998 -----------------
(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 ---------------- --------------------------------- ---- ------- Caterpillar Inc. 401(k) Master Trust $ $27,273,000 ========= =========== SSGA Money Market; 166,255.66 units $ $ 166,256 Babson Value Income; 95.84 units 4,397 Baron Asset; 90.13 units 4,555 Cohen and Steers Realty Shares Inc.; 105.77 units 4,017 Fidelity Utilities; 377.05 units 8,740 Europe; 131.25 units 4,394 Growth & Income; 95.44 units 4,375 Founders Growth; 249.53 units 5,093 Janus Special Situations; 292.97 units 5,101 Twenty; 201.94 units 10,764 Inv't Worldwide; 298.06 units 14,116 Kaufmann Fund; 713.54 units 4,053 Oakmark Fund; 135.51 units 4,854 PBHG Growth; 353.73 units 9,034 Rydex OTC Fund; 2,245.31 units 92,866 Stein Roe Investment Trust Cap Oppty; 143.73 units 4,220 Vanguard Fixed Inc Sec L/T Portfolio; 1,739.87 units 16,163 Growth Index; 2,465.92 units 78,096 Warburg Pincus Emerging Growth; 151.08 units 6,039 ----------- $ 447,133 ===========
-14- SCHEDULE II SOLAR TURBINES INCORPORATED --------------------------- SAVINGS AND INVESTMENT PLAN --------------------------- ITEM 27d - SCHEDULE OF REPORTABLE (5%) TRANSACTIONS --------------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1998 ------------------------------------
(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) - -------------- --------------------- ------ ----- ------ ----------- -------- ---- -------- Fidelity Utilities: Purchase $ 7,552 $ $ $ $ 7,552 $ 7,552 $ Kaufmann Fund: Purchase 4,966 4,966 4,966 SSGA Money Market Fund: Purchase 163,311 163,311 163,311 Sale 28,198 28,198 Strong Government Securities Income: Purchase 2,587 2,58 2,587 Sale 17,902 17,902 Wasatch Hoisington Treasury: Purchase 10,000 10,000 10,000 Sale 10,865 10,865
-15- 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 26, 1999 relating to the financial statements of the Solar Turbines Incorporated Savings and Investment Plan, which appears in this Form 11-K. /s/PricewaterhouseCoopers LLP Peoria, Illinois May 26, 1999 -----END PRIVACY-ENHANCED MESSAGE-----