Cash Reserves Fund TSCXX. ANNual REPORT. The fund invests in high-quality, short-term securities for capital preservation and current income.

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1 ANNual REPORT October 31, 2017 TSCXX T. Rowe Price Cash Reserves Fund The fund invests in high-quality, short-term securities for capital preservation and current income.

2 HIGHLIGHTS The Federal Reserve raised short-term interest rates three times during our 12-month reporting period, and the actions of the central bank seem to have firmly put behind us the long period of near-zero returns for money market investors that followed the 2008 financial crisis. The Cash Reserves Fund outperformed its Lipper peer group during our 6- and 12-month reporting periods. Higher yields meant the fund was able to invest in debt issued by banks and corporations at more attractive rates. Commercial paper and medium-term notes made up just over half the fund s net assets at the end of the reporting period. We expect the Fed s cautious, methodical approach to raising rates to continue in The views and opinions in this report were current as of October 31, They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the managers reserve the right to change their views about individual stocks, sectors, and the markets at any time. As a result, the views expressed should not be relied upon as a forecast of the fund s future investment intent. The report is certified under the Sarbanes-Oxley Act, which requires mutual funds and other public companies to affirm that, to the best of their knowledge, the information in their financial reports is fairly and accurately stated in all material respects. REPORTS ON THE WEB Sign up for our Program, and you can begin to receive updated fund reports and prospectuses online rather than through the mail. Log in to your account at troweprice.com for more information.

3 Manager s Letter Fellow Shareholders Citing the strengthening labor market and expectations that inflation would move higher over the medium term, the Federal Reserve raised short-term interest rates three times during our 12-month reporting period, lifting the federal funds target rate to a range of 1.00% to 1.25%. Additionally, in October, the Fed began the important process of slowly unwinding its $4.5 trillion balance sheet, a legacy of its massive purchases of Treasury bonds and mortgage-backed securities in the aftermath of the 2008 financial crisis. The actions of the central bank seem to have firmly put behind us the long period of near-zero returns for money market investors that followed the 2008 financial crisis. Performance Comparison Total Return Periods Ended 10/31/17 6 Months 12 Months Cash Reserves Fund 0.40% 0.60% Lipper Money Market Funds Index Your fund returned 0.40% and 0.60% for the 6- and 12-month periods ended October 31, 2017, respectively, outperforming the Lipper Money Market Funds Index. MARKET ENVIRONMENT The U.S. economy has picked up from the first quarter s 1.2% growth rate, with gross domestic product increasing at an annualized rate of 3.1% and 3.0% in the second and third quarters, respectively. The labor market has been healthy, with the national unemployment rate reaching a 17-year low in October. Inflation data showed some signs of normalizing after very weak pricing pressures earlier in

4 2.00% PORTFOLIO REVIEW Since our previous letter six months ago, the three-month LIBOR (a reference for bank lending levels) rose from 1.17% to 1.38%. Higher LIBOR rates meant the fund was able 6-Month Treasury Bill to invest in debt issued 90-Day Treasury Bill by banks and corporations at more attractive rates. Fed Funds Target Rate As shown in the Security Diversification exhibit on page 3, commercial paper and mediumterm notes made up just over half the fund s net assets at the end of the reporting period. Interest Rate Levels 10/31/16 1/17 4/17 7/17 10/31/17 Sources: Federal Reserve Board and J.P. Morgan. Portfolio Characteristics Periods Ended 4/30/17 10/31/17 Price Per Share $1.00 $1.00 Dividends Per Share For 6 months For 12 months SEC Yield (7-day simple)* 0.63% 0.87% Weighted Average Maturity (days) Weighted Average Life (days) Note: A money fund s yield more closely reflects its current earnings than does the total return. 12-month dividends may not equal the combined 6-month figures due to rounding. * In an effort to maintain a zero or positive net yield for the fund, T. Rowe Price may voluntarily waive all or a portion of the management fee it is entitled to receive from the fund. This voluntary waiver would be in addition to any contractual expense ratio limitation in effect for the fund and may be amended or terminated at any time without prior notice. This fee waiver would have the effect of increasing the fund s 7-day yield. Please see the prospectus for more details. The yields produced by municipal variable rate securities also moved somewhat higher, but to a lesser extent than commercial paper, so we decreased the fund s muni exposure over the second half of our fiscal year from 27% to 23% of assets. The continued strong demand for Treasuries and other U.S. government obligations drove prices higher (and yields lower) for these securities relative to other asset classes, but absolute yield levels did rise with the Fed hikes. Three-month Treasury bill yields increased from 0.34% at the end of October 2016 to 1.15% at the end of 2

5 Security Diversification Domestic Negotiable Certificates of Deposit U.S. Treasury Bills 4% U.S. Dollar- Denominated Foreign Negotiated Certificates of Deposit 5% U.S. Treasury Notes 9% 3% Other Assets Less Liabilities 2% Based on net assets as of 10/31/17. Repurchase Agreements 2% Commercial Paper and Medium-Term Notes 52% Municipal Obligations 23% the period. Yields for one-year Treasury bills moved from 0.66% to 1.43% over the same period. The overwhelming demand for these high-quality investments kept the short-maturity end of the Treasury yield curve very flat over the summer, but the improving economic picture led to a steepening curve as longer-maturity yields have increased more than shorter maturities. Notwithstanding their lower rates, the fund continues to hold Treasuries for their liquidity and diversification benefits. OUTLOOK Since the Fed began raising rates at the end of 2015, its actions have been well telegraphed, and the financial markets have taken its moves in stride. We expect this cautious, methodical approach to persist into The central bank s projections are for the Fed to raise rates again in December 2017 and then several times in Even with this forecast for rising rates, we are maintaining a weighted average maturity that is slightly longer than that of our average competitor because we expect a slow pace of rate hikes. Our current maturity target is for an average between 40 and 50 days. As a balance to our longer average maturity stance, the fund strives to maintain a high degree of liquidity, and our focus remains on principal stability and high-quality investments. 3

6 As always, thank you for investing with T. Rowe Price. Respectfully submitted, Joseph K. Lynagh Chairman of the fund s Investment Advisory Committee November 16, 2017 The committee chairman has day-to-day responsibility for managing the portfolio and works with committee members in developing and executing the fund s investment program. 4

7 Risk of Investing in a Nongovernment Money Fund You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. Glossary Basis point: One one-hundredth of one percentage point, or 0.01%. Gross domestic product: The total market value of all goods and services produced in a country in a given year. LIBOR: The London Interbank Offered Rate is a benchmark for short-term taxable rates. Lipper indexes: Fund benchmarks that consist of a small number (10 to 30) of the largest mutual funds in a particular category as tracked by Lipper Inc. SEC yield (7-day simple): A method of calculating a money fund s yield by annualizing the fund s net investment income for the last seven days of each period divided by the fund s net asset value at the end of the period. Yield will vary and is not guaranteed. Weighted average life: A measure of a fund s credit quality risk. In general, the longer the average life, the greater the fund s credit quality risk. The average life is the dollarweighted average maturity of a portfolio s individual securities without taking into account interest rate readjustment dates. Money funds must maintain a weighted average life of less than 120 days. Weighted average maturity: A measure of a fund s interest rate sensitivity. In general, the longer the average maturity, the greater the fund s sensitivity to interest rate changes. The weighted average maturity may take into account the interest rate readjustment dates for certain securities. Money funds must maintain a weighted average maturity of less than 60 days. Yield curve: A graph depicting the relationship between yields and maturity dates for a set of similar securities. A security with a longer maturity usually has a higher yield. If a short-term security offers a higher yield, then the curve is said to be inverted. If shortand long-term bonds are offering equivalent yields, then the curve is said to be flat. 5

8 Performance and Expenses Growth of $10,000 This chart shows the value of a hypothetical $10,000 investment in the fund over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The result is compared with benchmarks, which may include a broad-based market index and a peer group average or index. Market indexes do not include expenses, which are deducted from fund returns as well as mutual fund averages and indexes. CASH RESERVES FUND $12,000 11,600 11,200 10,800 10,400 10,000 As of 10/31/17 Cash Reserves Fund $10,456 Lipper Money Market Funds Index $10,416 10/07 10/08 10/09 10/10 10/11 10/12 10/13 10/14 10/15 10/16 10/17 Average Annual Compound Total Return Periods Ended 10/31/17 1 Year 5 Years 10 Years Cash Reserves Fund 0.60% 0.14% 0.45% This table shows how the fund would have performed each year if its actual (or cumulative) returns for the periods shown had been earned at a constant rate. Returns do not reflect taxes that the shareholder may pay on fund distributions or the redemption of fund shares. Past performance cannot guarantee future results. 6

9 Fund Expense Example As a mutual fund shareholder, you may incur two types of costs: (1) transaction costs, such as redemption fees or sales loads, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the most recent six-month period and held for the entire period. Actual Expenses The first line of the following table (Actual) provides information about actual account values and expenses based on the fund s actual returns. You may use the information on this line, together with your account balance, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number on the first line under the heading Expenses Paid During Period to estimate the expenses you paid on your account during this period. Hypothetical Example for Comparison Purposes The information on the second line of the table (Hypothetical) is based on hypothetical account values and expenses derived from the fund s actual expense ratio and an assumed 5% per year rate of return before expenses (not the fund s actual return). You may compare the ongoing costs of investing in the fund with other funds by contrasting this 5% hypothetical example and the 5% hypothetical examples that appear in the shareholder reports of the other funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. Note: T. Rowe Price charges an annual account service fee of $20, generally for accounts with less than $10,000. The fee is waived for any investor whose T. Rowe Price mutual fund accounts total $50,000 or more; accounts electing to receive electronic delivery of account statements, transaction confirmations, prospectuses, and shareholder reports; or accounts of an investor who is a T. Rowe Price Personal Services or Enhanced Personal Services client (enrollment in these programs generally requires T. Rowe Price assets of at least $250,000). This fee is not included in the accompanying table. If you are subject to the fee, keep it in mind when you are estimating the ongoing expenses of investing in the fund and when comparing the expenses of this fund with other funds. You should also be aware that the expenses shown in the table highlight only your ongoing costs and do not reflect any transaction costs, such as redemption fees or sales loads. Therefore, the second line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. To the extent a fund charges transaction costs, however, the total cost of owning that fund is higher. 7

10 Fund Expense Example (continued) Cash Reserves Fund Beginning Ending Expenses Paid Account Value Account Value During Period* 5/1/17 10/31/17 5/1/17 to 10/31/17 Actual $1, $1, $2.27 Hypothetical (assumes 5% return before expenses) 1, , * Expenses are equal to the fund s annualized expense ratio for the 6-month period (0.45%), multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (184), and divided by the days in the year (365) to reflect the half-year period. 8

11 Quarter-End Returns SEC Yield (7-Day Periods Ended 9/30/17 Simple)* 1 Year 5 Years 10 Years Cash Reserves Fund 0.85% 0.55% 0.13% 0.48% Current performance may be higher or lower than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. For the most recent month-end performance, please visit our website (troweprice.com) or contact a T. Rowe Price representative at This table provides returns through the most recent calendar quarter-end rather than through the end of the fund s fiscal periods. It shows how the fund would have performed each year if its actual (or cumulative) returns for the periods shown had been earned at a constant rate. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions. Returns do not reflect taxes that the shareholder may pay on fund distributions or the redemption of fund shares. When assessing performance, investors should consider both short- and long-term returns. A money fund s yield more closely represents its current earnings than does the total return. * In an effort to maintain a zero or positive net yield for the fund, T. Rowe Price has voluntarily waived all or a portion of the management fee it is entitled to receive from the fund. This voluntary waiver is in addition to any contractual expense ratio limitation in effect for the fund and may be amended or terminated at any time without prior notice. A fee waiver has the effect of increasing the fund s net yield; without it, the fund s 7-day yield would have been lower. Please see the prospectus for more details. Expense Ratio Cash Reserves Fund 0.45% The expense ratio shown is as of the fund s fiscal year ended 10/31/16. This number may vary from the expense ratio shown elsewhere in this report because it is based on a different time period and, if applicable, includes acquired fund fees and expenses but does not include fee or expense waivers. 9

12 Financial Highlights For a share outstanding throughout each period Year Ended 10/31/17 10/31/16 10/31/15 10/31/14 10/31/13 NET ASSET VALUE Beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Investment activities Net investment income (1) 0.01 (2)(3) (2)(3) (2)(3) (2)(3) Net realized and unrealized gain / loss (3) (3) (3) (3) (3) Total from Investment activities 0.01 (3) (3) (3) (3) Distributions Net investment income (0.01) (3) (3) (3) (3) NET ASSET VALUE End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Ratios/Supplemental Data Total return (4) 0.60% 0.08% (2) 0.01% (2) 0.01% (2) 0.01% (2) Ratio of total expenses to average net assets 0.45% 0.41% (2) 0.19% (2) 0.15% (2) 0.19% (2) Ratio of net investment income to average net assets 0.60% 0.06% (2) 0.01% (2) 0.01% (2) 0.01% (2) Net assets, end of period (in millions) $ 2,267 $ 2,177 $ 5,032 $ 5,799 $ 6,057 (1) Per share amounts calculated using average shares outstanding method. (2) Includes the effect of voluntary management fee waivers and operating expense reimbursements of 0.04%, 0.26%, 0.30%, and 0.26% of average net assets for the years ended 10/31/16, 10/31/15, 10/31/14 and 10/31/13, respectively. (3) Amounts round to less than $0.01 per share. (4) Total return reflects the rate that an investor would have earned on an investment in the fund during each period, assuming reinvestment of all distributions. The accompanying notes are an integral part of these financial statements. 10

13 October 31, 2017 Portfolio of Investments Par $ Value (Amounts in 000s) ASSET-BACKED COMMERCIAL PAPER 8.9% CAFCO, 1.28%, 11/7/17 (1) 5,500 5,499 CAFCO, 1.30%, 12/14/17 (1) 17,000 16,974 Chariot Funding, 1.40%, 1/2/18 (1) 21,000 20,949 CHARTA, 1.29%, 11/6/17 (1) 5,100 5,099 CHARTA, 1.29%, 11/7/17 (1) 7,500 7,498 CHARTA, 1.31%, 12/20/17 (1) 10,400 10,382 CRC Funding, 1.29%, 11/3/17 (1) 5,000 5,000 CRC Funding, 1.30%, 12/27/17 (1) 6,750 6,736 CRC Funding, 1.30%, 12/28/17 (1) 11,000 10,977 Fairway Finance, 1.30%, 11/20/17 (1) 1,100 1,099 Gotham Funding, 1.36%, 1/2/18 (1) 9,500 9,478 Liberty Street Funding, 1.33%, 12/4/17 (1) 17,000 16,979 Liberty Street Funding, 1.35%, 1/10/18 (1) 5,600 5,585 Manhattan Asset Funding, 1.30%, 11/1/17 (1) 5,200 5,200 Old Line Funding, 1.36%, 1/11/18 (1) 17,400 17,353 Old Line Funding, VR, 1.368%, 12/12/17 (1) 5,350 5,350 Regency Markets No. 1, 1.23%, 11/8/17 (1) 1,500 1,500 Starbird Funding, 1.325%, 12/20/17 (1) 20,150 20,114 Starbird Funding, 1.44%, 12/13/17 (1) 2,500 2,496 Thunder Bay Funding, 1.42%, 2/26/18 (1) 14,500 14,433 Victory Receivables, 1.33%, 11/13/17 (1) Victory Receivables, 1.35%, 1/11/18 (1) 7,700 7,680 Victory Receivables, 1.41%, 1/29/18 (1) 4,800 4,783 Total Asset-Backed Commercial Paper (Cost $201,864) 201,864 CERTIFICATES OF DEPOSIT 8.1% Bank of Montreal, VR, 1M USD LIBOR % 1.333%, 12/4/17 (2) 4,000 4,000 BMO Harris Bank, 1.41%, 11/10/17 (3) 17,250 17,250 11

14 (Amounts in 000s) Par $ Value BNP Paribas, VR, 1M USD LIBOR %, 1.379%, 11/15/17 (2) 9,000 9,000 Canadian Imperial Bank of Commerce, VR, 1M USD LIBOR %, 1.368%, 3/12/18 (2) 4,000 4,000 Chase Bank, VR, 3M USD LIBOR %, 1.65%, 1/9/18 (3) 15,000 15,000 Credit Agricole Corporate & Investment Bank, VR, 3M USD LIBOR %, 1.401%, 11/3/17 (2) 22,000 22,000 Credit Suisse, 1.41%, 11/21/17 (2) 5,000 5,000 Credit Suisse, VR, 1M USD LIBOR %, 1.465%, 11/7/17 (2) 17,500 17,500 KBC Bank, 1.33%, 11/17/17 (2) 20,000 20,000 Oversea Chinese Banking, VR, 1M USD LIBOR % 1.36%, 2/26/18 (2) 12,500 12,500 Oversea Chinese Banking, VR, 1M USD LIBOR % 1.369%, 3/20/18 (2) 10,000 10,000 Royal Bank of Canada, VR, 1M USD LIBOR % 1.328%, 12/19/17 (2) 4,000 4,000 Royal Bank of Canada, VR, 1M USD LIBOR % 1.559%, 3/20/18 (2) 8,000 8,000 Royal Bank of Canada, VR, 3M USD LIBOR % 1.617%, 12/8/17 (2) 2,500 2,500 US Bank, 1.319%, 3/20/18 (3) 16,000 16,000 Wells Fargo, VR, 1M USD LIBOR %, 1.338%, 1/5/18 (3) 16,000 16,000 Total Certificates of Deposit (Cost $182,750) 182,750 FINANCIAL COMPANY COMMERCIAL PAPER 17.4% ABN AMRO Funding, 1.32%, 1/5/18 (1) 1,300 1,297 ABN AMRO Funding, 1.40%, 2/8/18 (1) 6,750 6,724 ABN AMRO Funding, 1.49%, 3/9/18 (1) 9,700 9,649 Australia & New Zealand Banking, 1.31%, 1/12/18 (1) 8,700 8,677 Australia & New Zealand Banking, 1.38%, 2/23/18 (1) 13,750 13,690 BPCE, 1.39%, 12/20/17 (1) 12,250 12,227 BPCE, 1.42%, 11/3/17 (1) 10,000 9,999 12

15 (Amounts in 000s) Par $ Value Canadian Imperian Bank of Commerce, 1.49%, 1/9/18 (1) 14,000 13,960 Danske, 1.32%, 12/27/17 (1) 9,600 9,580 Danske, 1.34%, 1/11/18 (1) 11,000 10,971 Danske, 1.50%, 11/1/17 (1) Danske, 1.55%, 2/20/18 (1) 1,600 1,592 DBS Bank, 1.35%, 1/16/18 (1) 11,500 11,467 DBS Bank, 1.36%, 1/19/18 (1) 11,600 11,565 DNB Nor Bank, 1.15%, 11/7/17 (1) 20,000 19,996 HSBC, 1.33%, 12/19/17 (1) 10,000 9,982 ING (US) Funding, VR, 1.375%, 12/8/17 4,000 4,000 ING (US) Funding, 1.40%, 2/2/18 4,500 4,484 ING (US) Funding, 1.61%, 7/2/18 9,840 9,733 National Australia Bank, 1.40%, 2/8/18 (1) 9,250 9,214 Nationwide Building Society, 1.40%, 1/22/18 (1) 19,700 19,638 Nationwide Building Society, 1.41%, 1/29/18 (1) 3,000 2,990 Nordea Bank, 1.315%, 12/22/17 (1) 22,000 21,959 Skandinaviska Enskilda Banken, 1.30%, 12/1/17 (1) 18,750 18,730 Skandinaviska Enskilda Banken, 1.40%, 2/1/18 (1) Standard Chartered Bank, 1.39%, 11/1/17 (1) Standard Chartered Bank, 1.45%, 2/26/18 (1) 16,250 16,173 Standard Chartered Bank, 1.58%, 4/23/18 (1) 6,000 5,955 Sumitomo Mitsui Banking, 1.31%, 11/8/17 (1) 17,000 16,996 Svenska Handelsbanken, 1.29%, 1/3/18 (1) 22,000 21,950 Swedbank, 1.315%, 11/30/17 9,000 8,991 Swedbank, 1.32%, 11/10/17 5,848 5,846 Swedbank, 1.375%, 2/2/18 8,000 7,972 Toronto-Dominion Bank, VR, 1.468%, 9/25/18 (1) 20,000 20,000 Toronto-Dominion Holdings, 1.40%, 2/6/18 (1) 2,600 2,590 UBS, VR, 1.395%, 1/2/18 (1) 21,000 21,000 13

16 (Amounts in 000s) Par $ Value United Overseas Bank, 1.31%, 12/4/17 (1) 15,000 14,982 United Overseas Bank, 1.41%, 2/9/18 (1) 7,675 7,645 Total Financial Company Commercial Paper (Cost $393,996) 393,996 INSURANCE COMPANY FUNDING AGREEMENT 0.4% Principal Life Global Funding II, VR, 3M USD LIBOR % 1.816%, 12/1/17 (4) 10,000 10,004 Total Insurance Company Funding Agreement (Cost $10,004) 10,004 NON-FINANCIAL COMPANY COMMERCIAL PAPER 19.1% Automatic Data Processing, 1.10%, 11/1/17 (1) 15,300 15,300 Baylor Scott & White Holdings, 1.33%, 1/4/18 9,500 9,478 Baylor Scott & White Holdings, 1.36%, 11/8/17 12,550 12,547 Caterpillar, 1.28%, 11/7/17 14,954 14,951 Coca-Cola, 1.245%, 12/4/17 (1) 1,300 1,299 Coca-Cola, 1.30%, 1/5/18 (1) 4,500 4,489 Coca-Cola, 1.30%, 1/8/18 (1) 1,360 1,357 Coca-Cola, 1.32%, 2/5/18 (1) 9,000 8,968 Export Development, 1.25%, 12/5/17 22,000 21,974 GE Capital Treasury, 1.26%, 12/11/17 10,750 10,735 GE Capital Treasury, 1.33%, 2/7/18 10,750 10,711 Inova Health System, 1.30%, 11/16/17 20,000 19,989 Kaiser Permanente, 1.30%, 12/6/17 14,000 13,982 KFW International Finance, 1.22%, 11/13/17 (1) 4,400 4,398 KFW International Finance, 1.25%, 11/9/17 (1) 18,000 17,995 Los Angeles Metropolitan Transportation Auth., Series ATSM 1.31%, 12/5/17 8,000 8,000 Los Angeles Metropolitan Transportation Auth., Series ATSM 1.36%, 1/4/18 8,917 8,917 14

17 (Amounts in 000s) Par $ Value Los Angeles Municipal Improvement, Series B1 1.37%, 12/12/17 4,000 4,000 Massachusetts EFA, Series A, 1.38%, 2/6/18 4,800 4,800 Nestle Capital, 1.32%, 2/2/18 (1) 17,200 17,141 Northwestern Memorial Healthcare, 1.30%, 12/20/17 15,750 15,722 Novartis Finance Corp., 1.16%, 12/4/17 (1) 22,000 21,977 Ohio Higher Ed. Fac. Commission, 1.35%, 12/18/17 20,000 19,965 Philadelphia, Series C22, 1.31%, 12/1/17 9,150 9,150 Philadelphia, Series CC2, 1.34%, 11/6/17 5,000 5,000 Phillip Morris International, 1.30%, 12/4/17 (1) 3,000 2,996 Santa Clara Valley Water District, Series B 1.35%, 12/18/17 3,500 3,500 Sentara Heathcare, 1.30%, 11/7/17 20,000 20,000 Sentara Heathcare, 1.33%, 12/12/17 4,000 4,000 South Carolina Public Service, Series DD, 1.35%, 12/6/17 23,116 23,116 Texas PFA, Series 09-A, GO, 1.35%, 12/6/17 15,250 15,250 Total Capital Canada, 1.22%, 11/21/17 (1) 18,000 17,988 Toyota Motor Credit, VR, 1.372%, 2/23/18 17,250 17,250 Unitypoint Health, 1.31%, 12/6/17 4,512 4,506 Univ. of California Regents, Series B, 1.28%, 11/13/17 10,000 9,996 Univ. of California Regents, Series B, 1.29%, 11/15/17 12,000 11,994 Univ. of Pittsburgh, Series 2017, 1.26%, 12/1/17 7,250 7,250 Univ. of Texas, Series B, 1.14%, 11/6/17 5,000 5,000 Univ. of Texas, Series B, 1.18%, 12/4/17 7,000 6,999 Total Non-Financial Company Commercial Paper (Cost $432,690) 432,690 OTHER ASSET BACKED SECURITIES 1.6% CarMax Auto Owner Trust, Series , Class A1 1.35%, 8/15/18 7,761 7,761 15

18 (Amounts in 000s) Par $ Value CCG Receivables Trust, Series , Class A1 1.35%, 6/14/18 (4) 2,666 2,666 Enterprise Fleet Financing, Series , Class A1 1.50%, 7/20/18 (4) 5,091 5,091 Enterprise Fleet Financing, Series , Class A1 1.50%, 10/22/18 (4) 12,500 12,500 Santander Drive Auto Receivables Trust, Series Class A1, 1.30%, 6/15/ Wheels, Series A, Class A1, 1.40%, 7/20/18 (4) 8,379 8,379 Total Other Asset Backed Securities (Cost $36,695) 36,695 OTHER INSTRUMENTS 13.0% Apple, VR, 3M USD LIBOR %, 1.561%, 5/3/18 22,960 22,993 Bank of America, 1.39%, 1/3/18 20,000 20,000 Bank of America, VR, 1.417%, 11/17/17 2,000 2,000 Bank of New York Mellon, VR, 3M USD LIBOR % 1.695%, 5/22/18 11,400 11,424 BB&T, 1.45%, 1/12/18 10,210 10,210 Berkshire Hathaway, 1.55%, 2/9/18 6,500 6,503 Berkshire Hathaway, VR, 3M USD LIBOR % 1.867%, 3/7/18 15,450 15,482 Chevron, 1.344%, 11/9/17 5,750 5,750 Chevron, 1.345%, 11/15/17 9,430 9,430 Chevron, VR, 3M USD LIBOR %, 1.671%, 11/9/17 4,000 4,000 Cooperatieve Rabobank, 1.70%, 3/19/18 14,500 14,511 Exxon Mobil, VR, 3M USD LIBOR %, 1.366%, 3/1/18 11,920 11,922 General Dynamics, 1.00%, 11/15/17 9,957 9,956 General Electric, 5.25%, 12/6/17 2,285 2,294 HSBC, 1.50%, 11/13/17 3,918 3,918 HSBC, 1.625%, 1/16/18 4,000 4,000 HSBC, 1.70%, 3/5/18 3,000 3,001 16

19 (Amounts in 000s) Par $ Value Intel, 1.35%, 12/15/17 20,030 20,030 Merck & Company, VR, 3M USD LIBOR % 1.677%, 5/18/18 22,259 22,307 New York Life Global Funding, 1.45%, 12/15/17 (4) 6,000 6,001 New York Life Global Funding, VR, 3M USD LIBOR % 1.747%, 4/6/18 (4) 7,260 7,273 PNC Bank, 1.50%, 2/23/18 11,000 11,001 Praxair, 1.05%, 11/7/17 2,699 2,699 Shell International Finance, 1.25%, 11/10/17 14,557 14,557 Statoil, 1.25%, 11/9/17 11,795 11,795 Statoil, VR, 3M USD LIBOR %, 1.511%, 11/9/17 10,000 10,000 Walmart, 5.80%, 2/15/18 19,000 19,243 Westpac Banking, 1.50%, 12/1/17 1,517 1,517 Westpac Banking, VR, 3M USD LIBOR % 1.686%, 12/1/17 10,100 10,103 Total Other Instruments (Cost $293,920) 293,920 U.S. GOVERNMENT AGENCY REPURCHASE AGREEMENTS 1.7% (5) Royal Bank of Canada, Tri-Party, Dated 10/31/17, 1.06% Delivery Value of $38,001,119 on 11/1/17, Collateralized by U.S. Government securities, 1.48% %, 10/31/21-10/1/47, valued at $38,760,020 38,000 38,000 Total U.S. Government Agency Repurchase Agreements (Cost $38,000) 38,000 U.S. TREASURY DEBT 13.5% U.S. Treasury Bills, 1.033%, 11/16/17 40,000 39,983 U.S. Treasury Bills, 1.173%, 3/22/18 30,000 29,862 U.S. Treasury Bills, 1.19%, 4/5/18 25,000 24,872 U.S. Treasury Notes, 2.625%, 1/31/18 23,450 23,537 U.S. Treasury Notes, FRN, 3M UST %, 1.178%, 4/30/19 6,000 6,002 17

20 (Amounts in 000s) Par $ Value U.S. Treasury Notes, FRN, 3M UST %, 1.248%, 1/31/19 68,300 68,300 U.S. Treasury Notes, FRN, 3M UST %, 1.278%, 10/31/18 6,080 6,080 U.S. Treasury Notes, FRN, 3M UST %, 1.282%, 7/31/18 24,600 24,599 U.S. Treasury Notes, FRN, 3M UST %, 1.298%, 4/30/18 42,000 42,000 U.S. Treasury Notes, FRN, 3M UST %, 1.38%, 1/31/18 42,000 42,001 Total U.S. Treasury Debt (Cost $307,236) 307,236 VARIABLE RATE DEMAND NOTES 16.2% Andrew Mellon Foundation, VRDN, 1.33%, 11/7/17 10,190 10,190 Baltimore City, Parking System Fac., VRDN, 1.20%, 11/7/17 24,500 24,500 Charlotte, Nascar, Series D, VRDN, 1.20%, 11/7/17 23,220 23,220 Colorado Housing Fin Auth., Multi-Family, Series B-1, VRDN 1.10%, 11/7/17 23,585 23,585 Colorado Housing Fin Auth., Single Family, Series B-1, VRDN 1.25%, 11/7/17 3,750 3,750 Illinois Finance Auth., Carle Foundation, Series B, VRDN 1.16%, 11/7/17 20,000 20,000 Johnson City Health & Ed. Fac. Board, Series B, VRDN 1.20%, 11/7/17 10,480 10,480 Maryland CDA, Series B, VRDN, 1.15%, 11/7/17 11,900 11,900 Maryland CDA, Series F, VRDN, 1.20%, 11/7/17 8,000 8,000 Maumelle, Kimberly Clark, Series 2015, VRDN 1.05%, 11/7/17 (4) 17,300 17,300 Michigan Fin. Auth., School Loan, GO, VRDN, 1.11%, 11/7/ Michigan Fin. Auth., School Loan, GO, VRDN, 1.13%, 11/7/17 25,000 25,000 Montgomery County Housing Opportunity Commission Series D, VRDN, 1.18%, 11/7/17 9,800 9,800 Montgomery County Housing Opportunity Commission, Series E VRDN, 1.18%, 11/7/17 8,315 8,315 New York City Housing Dev. Corp., 201 Pearl Street, Series A VRDN, 1.05%, 11/7/17 21,810 21,810 18

21 (Amounts in 000s) Par $ Value New York State Housing Fin. Agency, 606 West 57th Street Series A, VRDN, 1.29%, 11/7/17 21,000 21,000 New York State Housing Fin. Agency, Series A, VRDN 1.15%, 11/7/17 21,600 21,600 North Hudson Sewer Auth., Senior Lien, Series C, VRDN 1.15%, 11/7/17 7,805 7,805 Providence Health & Services, VRDN, 1.25%, 11/7/17 24,485 24,485 Southern Ute Indian Tribe, VRDN, 1.25%, 11/7/17 25,000 25,000 Univ. of Illinois, Auxiliary Fac. System, Series C, VRDN 1.20%, 11/7/17 7,415 7,415 Westchester County Healthcare, Series D, VRDN 1.24%, 11/7/17 20,000 20,000 Wisconsin Housing & Economic Dev. Series F, VRDN 1.10%, 11/7/17 22,520 22,520 Total Variable Rate Demand Notes (Cost $367,855) 367,855 Total Investments in Securities 99.9% of Net Assets (Cost $2,265,010) $ 2,265,010 Par is denominated in U.S. dollars unless otherwise noted. (1) Commercial paper exempt from registration under Section 4(2) of the Securities Act of 1933 and may be resold in transactions exempt from registration only to dealers in that program or other "accredited investors" -- total value of such securities at period-end amounts to $668,742 and represents 29.5% of net assets. (2) Yankee certificates of deposit are issued by U.S. branches of foreign banks. (3) Domestic certificates of deposit are issued by domestic branches of U.S. banks. (4) Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers -- total value of such securities at period-end amounts to $69,214 and represents 3.1% of net assets. (5) Collateralized by U.S. government securities valued at $38,760 at October 31, See Note 3 1M USD LIBOR One month USD LIBOR (London Interbank Offered Rate) 3M USD LIBOR Three month USD LIBOR (London Interbank Offered Rate) 3M UST Three month U.S. Treasury Bill yield CDA Community Development Administration/Authority 19

22 EFA Educational Facility Authority FRN Floating-Rate Note GO General Obligation PFA Public Finance Authority/Agency VR Variable Rate; rate shown is effective rate at period-end. The rates for certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and based on current market conditions. VRDN Variable Rate Demand Note under which the holder has the right to sell the security to the issuer or the issuer's agent at a predetermined price on specified dates; such specified dates are considered the effective maturity for purposes of the fund's weighted average maturity; rate shown is effective rate at period-end and maturity date shown is the date principal can be demanded. Certain VRDN rates are not based on a published reference rate and spread but may adjust periodically. The accompanying notes are an integral part of these financial statements. 20

23 October 31, 2017 Statement of Assets and Liabilities ($000s, except shares and per share amounts) Assets Investments in securities, at value (cost $2,265,010) $ 2,265,010 Receivable for shares sold 3,534 Interest receivable 2,680 Receivable for investment securities sold 605 Cash 5 Total assets 2,271,834 Liabilities Payable for shares redeemed 3,668 Investment management and administrative fees payable 1,137 Other liabilities 27 Total liabilities 4,832 NET ASSETS $ 2,267,002 Net Assets Consist of: Accumulated undistributed net realized gain $ 3 Paid-in capital applicable to 2,266,493,479 shares of $ par value capital stock outstanding; 10,000,000,000 shares of the Corporation authorized 2,266,999 NET ASSETS $ 2,267,002 NET ASSET VALUE PER SHARE $ 1.00 The accompanying notes are an integral part of these financial statements. 21

24 Statement of Operations ($000s) Investment Income (Loss) Year Ended 10/31/17 Income Interest $ 23,387 Other 4 Total income 23,391 Expenses Investment management and administrative expense 10,017 Net investment income 13,374 Realized Gain (Loss) Net realized gain on securities 27 INCREASE IN NET ASSETS FROM OPERATIONS $ 13,401 The accompanying notes are an integral part of these financial statements. 22

25 Statement of Changes in Net Assets ($000s) Increase (Decrease) in Net Assets Year Ended 10/31/17 10/31/16 Operations Net investment income $ 13,374 $ 2,486 Net realized gain Increase in net assets from operations 13,401 2,522 Distributions to shareholders Net investment income (13,374) (2,486) Capital share transactions* Shares sold 1,109,593 4,437,158 Distributions reinvested 13,067 2,384 Shares redeemed (1,032,688) (7,294,941) Increase (decrease) in net assets from capital share transactions 89,972 (2,855,399) Net Assets Increase (decrease) during period 89,999 (2,855,363) Beginning of period 2,177,003 5,032,366 End of period $ 2,267,002 $ 2,177,003 Undistributed net investment income *Capital share transactions at net asset value of $1.00 per share. The accompanying notes are an integral part of these financial statements. 23

26 October 31, 2017 Notes to Financial Statements T. Rowe Price Summit Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The Cash Reserves Fund (the fund) is a diversified, open-end management investment company established by the corporation. The fund seeks preservation of capital and liquidity and, consistent with these, the highest possible current income. The fund intends to operate as a retail money market fund and has the ability to impose liquidity fees on redemptions and/or temporarily suspend redemptions. NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation The fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 (ASC 946). The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), including, but not limited to, ASC 946. GAAP requires the use of estimates made by management. Management believes that estimates and valuations are appropriate; however, actual results may differ from those estimates, and the valuations reflected in the accompanying financial statements may differ from the value ultimately realized upon sale or maturity. Investment Transactions, Investment Income, and Distributions Investment transactions are accounted for on the trade date basis. Income and expenses are recorded on the accrual basis. Realized gains and losses are reported on the identified cost basis. Premiums and discounts on debt securities are amortized for financial reporting purposes. Paydown gains and losses are recorded as an adjustment to interest income. Income tax-related interest and penalties, if incurred, are recorded as income tax expense. Income distributions are declared daily and paid monthly. Distributions to shareholders are recorded on the ex-dividend date. A capital gain distribution may also be declared and paid by the fund annually. New Accounting Guidance In March 2017, the FASB issued amended guidance to shorten the amortization period for certain callable debt securities, held at a premium. The guidance is effective for fiscal years and interim periods beginning after December 15, Adoption will have no effect on the fund s net assets or results of operations. 24

27 On August 1, 2017, the fund implemented amendments to Regulation S-X, issued by the Securities and Exchange Commission, which require standardized, enhanced disclosures, particularly related to derivatives, in investment company financial statements. Adoption had no effect on the fund s net assets or results of operations. Indemnification In the normal course of business, the fund may provide indemnification in connection with its officers and directors, service providers, and/or private company investments. The fund s maximum exposure under these arrangements is unknown; however, the risk of material loss is currently considered to be remote. NOTE 2 - VALUATION The fund s financial instruments are valued and its net asset value (NAV) per share is computed at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day the NYSE is open for business. However, the NAV per share may be calculated at a time other than the normal close of the NYSE if trading on the NYSE is restricted, if the NYSE closes earlier, or as may be permitted by the SEC. The fund s financial instruments are reported at fair value, which GAAP defines as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities other than financial instruments, including short-term receivables and payables, are carried at cost, or estimated realizable value, if less, which approximates fair value. The T. Rowe Price Valuation Committee (the Valuation Committee) is an internal committee that has been delegated certain responsibilities by the fund s Board of Directors (the Board) to ensure that financial instruments are appropriately priced at fair value in accordance with GAAP and the 1940 Act. Subject to oversight by the Board, the Valuation Committee develops and oversees pricingrelated policies and procedures, including the comparison of amortized cost to market-based value, and approves all fair value determinations. Various valuation techniques and inputs are used to determine the fair value of financial instruments. GAAP establishes the following fair value hierarchy that categorizes the inputs used to measure fair value: Level 1 quoted prices (unadjusted) in active markets for identical financial instruments that the fund can access at the reporting date 25

28 Level 2 inputs other than Level 1 quoted prices that are observable, either directly or indirectly (including, but not limited to, quoted prices for similar financial instruments in active markets, quoted prices for identical or similar financial instruments in inactive markets, interest rates and yield curves, implied volatilities, and credit spreads) Level 3 unobservable inputs Observable inputs are developed using market data, such as publicly available information about actual events or transactions, and reflect the assumptions market participants would use to price the financial instrument. Unobservable inputs are those for which market data are not available and are developed using the best information available about the assumptions that market participants would use to price the financial instrument. GAAP requires valuation techniques to maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level but rather the degree of judgment used in determining those values. For example, securities held by a money market fund are generally high quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value are not quoted prices in an active market. In accordance with Rule 2a-7 under the 1940 Act, the fund values its securities at amortized cost, which approximates fair value. Securities for which amortized cost is deemed not to reflect fair value are stated at fair value as determined in good faith by the Valuation Committee. On October 31, 2017, all of the fund s financial instruments were classified as Level 2 in the fair value hierarchy. NOTE 3 - OTHER INVESTMENT TRANSACTIONS Consistent with its investment objective, the fund engages in the following practices to manage exposure to certain risks and/or to enhance performance. The investment objective, policies, program, and risk factors of the fund are described more fully in the fund s prospectus and Statement of Additional Information. 26

29 Restricted Securities The fund may invest in securities that are subject to legal or contractual restrictions on resale. Prompt sale of such securities at an acceptable price may be difficult and may involve substantial delays and additional costs. Repurchase Agreements The fund may engage in repurchase agreements, pursuant to which it pays cash to and receives securities from a counterparty that agrees to repurchase the securities at a specified time, typically within seven business days, for a specified price. The fund enters into such agreements with well-established securities dealers or banks that are members of the Federal Reserve System and are on Price Associates approved list. All repurchase agreements are fully collateralized by U.S. government or related agency securities, which are held by the custodian designated by the agreement. Collateral is evaluated daily to ensure that its market value exceeds the delivery value of the repurchase agreements at maturity. Although risk is mitigated by the collateral, the fund could experience a delay in recovering its value and a possible loss of income or value if the counterparty fails to perform in accordance with the terms of the agreement. NOTE 4 - FEDERAL INCOME TAXES No provision for federal income taxes is required since the fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and distribute to shareholders all of its taxable income and gains. Distributions determined in accordance with federal income tax regulations may differ in amount or character from net investment income and realized gains for financial reporting purposes. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character but are not adjusted for temporary differences. The fund files U.S. federal, state, and local tax returns as required. The fund s tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes. 27

30 Reclassifications to paid-in capital relate primarily to a tax practice that treats a portion of the proceeds from each redemption of capital shares as a distribution of taxable net investment income or realized capital gain. For the year ended October 31, 2017, the following reclassifications were recorded to reflect tax character (there was no impact on results of operations or net assets): ($000s) Undistributed net realized gain $ (24) Paid-in capital 24 Distributions during the years ended October 31, 2017 and October 31, 2016, totaled $13,374,000 and $2,486,000, respectively, and were characterized as ordinary income for tax purposes. At October 31, 2017, the tax-basis cost of investments, including derivatives, and components of net assets were as follows: ($000s) Cost of investments $ 2,265,010 Undistributed ordinary income $ 3 Paid-in capital 2,266,999 Net assets $ 2,267,002 NOTE 5 - RELATED PARTY TRANSACTIONS The fund is managed by T. Rowe Price Associates, Inc. (Price Associates), a wholly owned subsidiary of T. Rowe Price Group, Inc. (Price Group). The investment management and administrative agreement between the fund and Price Associates provides for an all-inclusive annual fee equal to 0.45% of the fund s average daily net assets. The fee is computed daily and paid monthly. The all-inclusive fee covers investment management, shareholder servicing, transfer agency, accounting, and custody services provided to the fund, as well as fund directors fees and expenses. Interest, taxes, brokerage commissions, and other non-recurring expenses permitted by the investment management agreement are paid directly by the fund. 28

31 Additionally, the fund is one of several mutual funds in which certain college savings plans managed by Price Associates may invest. As approved by the fund s Board of Directors, shareholder servicing costs associated with each college savings plan are allocated to the fund in proportion to the average daily value of its shares owned by the college savings plan. Shareholder servicing costs allocated to the fund are borne by Price Associates, pursuant to the fund s all-inclusive fee agreement. At October 31, 2017, no shares of the fund were held by college savings plans. The fund is also one of several mutual funds sponsored by Price Associates (underlying Price funds) in which the T. Rowe Price Spectrum Funds (Spectrum Funds) and T. Rowe Price Retirement Funds (Retirement Funds) may invest. None of the Spectrum Funds or Retirement Funds invest in the underlying Price funds for the purpose of exercising management or control. Pursuant to special servicing agreements, expenses associated with the operation of the Spectrum Funds and Retirement Funds are borne by each underlying Price fund to the extent of estimated savings to it and in proportion to the average daily value of its shares owned by the Spectrum Funds and Retirement Funds. Expenses allocated to the fund under these special servicing agreements are borne by Price Associates, pursuant to its all-inclusive fee agreement. At October 31, 2017, and during the year then ended, no shares of the fund were held by the Spectrum Funds and Retirement Funds. The fund may participate in securities purchase and sale transactions with other funds or accounts advised by Price Associates (cross trades), in accordance with procedures adopted by the fund s Board and Securities and Exchange Commission rules, which require, among other things, that such purchase and sale cross trades be effected at the independent current market price of the security. During the year ended October 31, 2017, the fund had no purchases or sales cross trades with other funds or accounts advised by Price Associates. 29

32 NOTE 6 - INTERFUND LENDING PROGRAM Price Associates has developed and manages an interfund lending program that provides temporary liquidity to the T. Rowe Price-sponsored mutual funds. The program permits the borrowing and lending of cash between the fund and other T. Rowe Price-sponsored mutual funds at rates beneficial to both the borrowing and lending funds. Pursuant to program guidelines, the fund may lend up to 15% of its net assets, and no more than 5% of its net assets may be lent to any one borrower. Loans totaling 10% or more of a borrowing fund s total assets require collateralization at 102% of the value of the loan; loans of less than 10% are unsecured. During the year ended October 31, 2017, the fund earned $8,000 in interest income related to loans made to other funds on 17 days in the average amount of $11,106,000 and at an average annual rate of 1.62%. At October 31, 2017, there were no loans outstanding. 30

33 Report of Independent Registered Public Accounting Firm To the Board of Directors of T. Rowe Price Summit Funds, Inc. and Shareholders of T. Rowe Price Cash Reserves Fund In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the T. Rowe Price Cash Reserves Fund (comprising T. Rowe Price Summit Funds, Inc., hereafter referred to as the Fund ) as of October 31, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements ) are the responsibility of the Fund s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards 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, which included confirmation of securities as of October 31, 2017 by correspondence with the custodian, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Baltimore, Maryland December 15,