-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, ShfLTj2QFqXaOQ12s83tutUKHYmjg/Ox3Cz9Td4tUy3OuyYslArL7c0rQLlJQwkw 21Ye2YHSsFchlwkulUpGzg== 0000353524-94-000042.txt : 19940602 0000353524-94-000042.hdr.sgml : 19940602 ACCESSION NUMBER: 0000353524-94-000042 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940331 FILED AS OF DATE: 19940511 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IBM CREDIT CORP CENTRAL INDEX KEY: 0000353524 STANDARD INDUSTRIAL CLASSIFICATION: 6172 IRS NUMBER: 222351962 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08175 FILM NUMBER: 94527061 BUSINESS ADDRESS: STREET 1: 290 HARBOR DR STREET 2: P O BOX 10399 CITY: STAMFORD STATE: CT ZIP: 06904 BUSINESS PHONE: 2039735100 10-Q 1 10-Q 3/31/94 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 :hp3.F O R M 1 0 - Q:ehp3. QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 :hp3.FOR THE QUARTERLY PERIOD ENDED:ehp3. :hp3.MARCH 31, 1994:ehp3. 1-8175 ________________________ (Commission file number) :hp3.IBM CREDIT CORPORATION:ehp3. ______________________________________________________ (Exact name of registrant as specified in its charter) Delaware 22-2351962 _______________________________ ____________________ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 290 Harbor Drive P. O. Box 10399 Stamford, Connecticut 06904-2399 ________________________________________ (Address of principal executive offices) 203-973-5100 ____________________________________________________ (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ___ ___ As of April 30, 1994, 750 shares of capital stock, par value $1.00 per share, were outstanding and held by International Business Machines Corporation. Aggregate market value of voting stock held by non-affiliates of registrant at April 30, 1994: NONE. The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with the reduced disclosure format. INDEX _____ Part I - Financial Information: Page ____ Item 1. Financial Statements: Consolidated Statement of Financial Position at March 31, 1994 and December 31, 1993 . . . . . . . . . . . . 1 Consolidated Statement of Earnings for the three months ended March 31, 1994 and 1993 . . . . . . . . . . . . . 2 Consolidated Statement of Cash Flows for the three months ended March 31, 1994 and 1993 . . . . . . 3 Notes to Consolidated Financial Statements . . . . . . . . . . 4 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations . . . . 5 Part II - Other Information . . . . . . . . . . . . . . . . . . . . . 12 :hp3. IBM CREDIT CORPORATION CONSOLIDATED STATEMENT OF FINANCIAL POSITION :ehp3. (Dollars in thousands)
At At March 31, December 31, 1994 1993 ____________ ____________ :hp3.ASSETS::ehp3. Cash and cash equivalents. . . . . . . . $ 548,506 $ 609,891 Net investment in capital leases . . . . 4,266,358 4,437,257 Equipment on operating leases, net . . . 1,665,614 1,753,121 Loans receivable . . . . . . . . . . . . 975,906 1,037,864 Working capital financing receivables. . 1,317,411 1,425,781 Investments and other assets . . . . . . 538,273 531,737 Due and deferred from receivable sales . 229,605 245,892 __________ ___________ Total Assets $9,541,673 $10,041,543 ========== =========== :hp3.LIABILITIES AND STOCKHOLDER'S EQUITY::ehp3. Liabilities: Short-term debt. . . . . . . . . . . . . $4,132,380 $ 4,227,724 Short-term debt, IBM Corporation . . . . 300,000 - Due to IBM Corporation and affiliates. . 812,616 1,259,547 Interest and other accruals. . . . . . . 344,063 312,464 Deferred income taxes. . . . . . . . . . 751,677 811,283 Long-term debt . . . . . . . . . . . . . 2,141,147 2,279,796 __________ ___________ Total liabilities. . . . . . . . . . . . 8,481,883 8,890,814 __________ ___________ Stockholder's equity: Capital stock, par value $1 per share Shares authorized: 10,000; Shares issued and outstanding: 750. . 438,811 438,811 Retained earnings. . . . . . . . . . . . 620,979 711,918 __________ ___________ Total stockholder's equity . . . . . . . 1,059,790 1,150,729 __________ ___________ Total Liabilities & Stockholder's Equity $9,541,673 $10,041,543 ========== =========== The accompanying notes are an integral part of this statement.
- 1 - :hp3. IBM CREDIT CORPORATION CONSOLIDATED STATEMENT OF EARNINGS FOR THE THREE MONTHS ENDED MARCH 31: :ehp3. (Dollars in thousands)
1994 1993 ________ ________ :hp3.FINANCE AND OTHER INCOME::ehp3. Income from leases: Capital leases . . . . . . . . . . . . . . . $ 89,623 $125,050 Operating leases (net of depreciation: 1994- $156,528 and 1993- $160,211) . . . . 38,788 35,006 ________ ________ 128,411 160,056 Income from loans . . . . . . . . . . . . . . . 21,063 31,290 Income from working capital financing . . . . . 30,488 22,979 Equipment sales . . . . . . . . . . . . . . . . 150,530 164,746 Other income . . . . . . . . . . . . . . . . . 29,642 26,586 ________ ________ Total finance and other income . . . . . . . 360,134 405,657 ________ ________ :hp3.COST AND EXPENSES::ehp3. Interest. . . . . . . . . . . . . . . . . . . . 75,425 93,931 Cost of equipment sales . . . . . . . . . . . . 138,086 148,143 Selling, general, and administrative . . . . . 40,208 50,596 Provision for receivable losses . . . . . . . . 9,004 19,642 ________ ________ Total cost and expenses. . . . . . . . . . . 262,723 312,312 ________ ________ :HP3.EARNINGS BEFORE INCOME TAXES:ehp3. 97,411 93,345 Provision for income taxes . . . . . . . . . . . 38,350 35,094 ________ ________ :hp3.NET EARNINGS:ehp3. . . . . . . . . . . . . . . . . . $ 59,061 $ 58,251 ======== ======== The accompanying notes are an integral part of this statement.
- 2 - :hp3. IBM CREDIT CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31: :ehp3. (Dollars in thousands) 1994 1993
_________ _________ :hp3.CASH FLOW FROM OPERATING ACTIVITIES::ehp3. Net earnings . . . . . . . . . . . . . . . . . . . $ 59,061 $ 58,251 Adjustments to net earnings: Depreciation and amortization. . . . . . . . . . 156,106 161,122 Provision for receivable losses. . . . . . . . . 9,004 19,642 Change in deferred income taxes. . . . . . . . . (59,606) 287,527 Change in interest and other accruals. . . . . . 31,599 (43,960) Gross profit on equipment sales. . . . . . . . . (12,444) (16,603) ________ _________ Cash provided by net earnings. . . . . . . . . . . 183,720 465,979 Proceeds from equipment sales. . . . . . . . . . . 150,530 164,746 Decrease in amounts due to IBM Corporation and affiliates . . . . . . . . . . . . . . . . . . . (446,931) (618,077) ________ _________ Cash (used in) provided by operating activities . . . (112,681) 12,648 ________ _________ :hp3.CASH FLOW FROM INVESTING ACTIVITIES::ehp3. Investment in capital leases . . . . . . . . . . . (251,025) (277,745) Collection of capital leases, net of income earned. . . . . . . . . . . . . . . . . 308,990 390,257 Investment in equipment on operating leases. . . . (87,312) (55,777) Investment in loans receivable . . . . . . . . . . (81,775) (96,837) Collection of loans receivable, net of interest earned. . . . . . . . . . . . . . . . 127,205 204,318 Investment in working capital financing receivables, net of cash collected. . . . . . . . 108,370 160,628 Other changes, net . . . . . . . . . . . . . . . . 9,136 (21,834) ________ _________ Cash provided by investing activities . . . . . . . . 133,589 303,010 ________ _________ :hp3.CASH FLOW FROM FINANCING ACTIVITIES::ehp3. Proceeds from issuance of long-term debt . . . . . 41,640 162,584 Repayment of debt: Original maturities of one year or more . . . . . (383,350) (128,950) Original maturities within one year (net of debt issued). . . . . . . . . . . . . . . . . 409,417 (91,635) Cash dividends paid to IBM Corporation . . . . . . (150,000) (175,000) ________ _________ Cash used in financing activities . . . . . . . . . . (82,293) (233,001) ________ _________ Change in cash and cash equivalents . . . . . . . . . (61,385) 82,657 Cash and cash equivalents at January 1 . . . . . . . 609,891 598,557 ________ _________ Cash and cash equivalents at March 31 . . . . . . . . $548,506 $ 681,214 ======== ========= :hp3.TOTAL CASH PROVIDED BEFORE DIVIDENDS:EHP3. . . . . $ 88,615 $ 257,657 ======== ========= The accompanying notes are an integral part of this statement.
- 3 - :hp3. IBM CREDIT CORPORATION Notes to Consolidated Financial Statements :ehp3. 1. In the opinion of the management of IBM Credit Corporation (the Company), all adjustments necessary for a fair statement of the unaudited results for the three-month periods have been made. These adjustments are of a normal and recurring nature. 2. The ratio of earnings to fixed charges, calculated in accordance with applicable Securities and Exchange Commission requirements, was 2.28 and 1.98 for the three months ended March 31, 1994 and 1993, respectively. 3. Related Party Transactions: The Company provides capital equipment financing to International Business Machines Corporation (IBM) affiliated companies for both IBM and non-IBM products. During the first three months of 1994, the Company originated $60.4 million of such financing, compared with $11.6 million for the first three months of 1993. These financings are included primarily in the Company's operating lease portfolio. The Company borrowed $300 million from IBM in the first quarter of 1994. The borrowing is at market terms and conditions. 4. Subsequent Events: On April 5, 1994, the Company and Fleet Financial Group (Fleet) announced that a Fleet bank subsidiary had agreed in principle to purchase 100 percent of the stock of IBM Credit Investment Management Corporation, a wholly owned subsidiary of the Company that provides investment management and administrative services for the IBM Mutual Funds. It is anticipated that this transaction will also result in the redemption of the IBM Money Market Account notes, which are currently a source of short-term funding for the Company. These transactions are expected to be completed in the second quarter of 1994. On April 20, 1994, the amount the Company was authorized to borrow increased from $1.0 billion to $1.6 billion under a $10.0 billion IBM Global Credit Facility. The Company has not drawn any amounts under this credit facility. On April 29, 1994, the Company's Board of Directors declared a $145 million dividend, payable to IBM on May 25, 1994. -4- Item 2. :hp3. IBM CREDIT CORPORATION ______________________ MANAGEMENT'S DISCUSSION AND ANALYSIS ____________________________________ OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ________________________________________________ :ehp3. :hp3.OVERVIEW:ehp3. For the three months ended March 31, 1994, the Company originated financing for $2.1 billion of equipment, software and services. Net earnings for the three months ended March 31, 1994 were $59.1 million, yielding an annualized return on average equity of 22.2 percent. :hp3.FINANCING ORIGINATED:ehp3. The Company originated financing for $2.1 billion of equipment, software and services in the first three months of 1994, compared with $1.7 billion in the same 1993 period. Capital equipment financing for end users decreased by 8 percent to $557.0 million. The decrease in capital equipment financing originated is primarily the result of fewer IBM shipments in the first three months of 1994 compared with the same 1993 period, offset in part by an increase in the proportion of IBM products and services financed by the Company. Working capital financing for dealers and remarketers of information industry products increased by 48 percent to $1,579.0 million. This improvement reflects increased shipments of IBM's personal computer and workstation products during the first three months of 1994 compared with the same 1993 period, as well as the Company's on-going efforts to provide working capital financing that meets the full range of financing requirements of IBM authorized resellers. Capital equipment financings for end users comprises purchases of $321.1 million of information handling systems from IBM, financing originated for installment receivables of $31.9 million, other financing primarily for IBM software and services of $50.2 million, installment and lease financing for state and local government customers of $69.1 million for the account of IBM, and other financing of $84.7 million for equipment and services, as well as selected complementary non-IBM equipment that meets IBM customers' total solution requirements. The purchases of $321.1 million from IBM consisted of $241.7 million for capital leases and $79.4 million for operating leases. -5- :HP3.REMARKETING ACTIVITIES:EHP3. In addition to originating new financing, the Company remarkets used IBM equipment. This equipment is primarily sourced from the termination of lease transactions and is generally remarketed through retail channels in cooperation with the IBM sales force. The equipment is leased to end users or sold outright. These transactions may be with existing lessees or, when equipment is returned, with a new customer. At March 31, 1994, the investment in remarketed equipment on capital and operating leases totaled $573.1 million, a decrease of 8 percent from the 1993 year-end investment of $619.8 million. Included in remarketing activities are income from leases and gross profit on equipment sales, net of the reduction in income to recognize the write-down in residual values of certain leased equipment. The remarketing contributions amounted to $37.2 million for the first three months of 1994, an increase of 21 percent compared with $30.8 million for the same 1993 period. :hp3.ASSETS:ehp3. Total assets decreased to $9.5 billion at March 31, 1994, compared with $10.0 billion at December 31, 1993. This decrease is primarily the result of cash collections on loans, capital lease investments and working capital financing receivables exceeding financings originated during the first quarter of 1994. Approximately 80 percent of the Company's total assets at March 31, 1994 related to the financing of IBM products and services. :hp3.LIABILITIES AND STOCKHOLDER'S EQUITY:ehp3. The assets of the business were financed with $6,573.5 million of debt at March 31, 1994. Total debt, which includes short-term and long-term debt, increased by $66.0 million, from $6,507.5 million at December 31, 1993. This increase was primarily the result of increases in commercial paper outstanding of $307.7 million and short-term debt of $300.0 million, payable to IBM and having market terms and conditions, offset in part by decreases in long-term debt of $138.6 million, floating and fixed medium-term notes of $96.1 million, and a matured $300.0 million bond. -6- At March 31, 1994, the Company had available $1.7 billion of a shelf registration with the Securities and Exchange Commission. This shelf registration allows the Company to quickly access domestic financial markets. In addition, a subsidiary of the Company had available $750.0 million of a separate shelf registration for asset backed securities. The Company also has a commercial paper program, a medium-term note program, and the IBM money market program. As described in note 4 of Notes to Consolidated Financial Statements, it is anticipated that the Company will redeem the IBM Money Market Account notes in the second quarter of 1994. The Company is an authorized borrower of up to $1.6 billion under a $10.0 billion IBM Global Credit Facility (as described in note 4 of Notes to Consolidated Financial Statements, the authorization was increased from $1.0 billion to $1.6 billion on April 20, 1994), and has a liquidity agreement with IBM for $500.0 million. The Company has no borrowings outstanding under the credit facility and the liquidity agreement. The Company also has the option, as approved by the Board of Directors on July 29, 1993, to sell, assign, pledge, or transfer up to an additional $2.6 billion of assets to third parties through December 31, 1994. These financing sources, along with the Company's internally generated cash, medium-term note, and commercial paper programs, provide the flexibility to the Company to grow its lease and loan portfolio, service debt, and fund working capital requirements. Amounts due to IBM Corporation and affiliates decreased by $446.9 million to $812.6 million at March 31, 1994, from $1,259.5 million at December 31, 1993. This reduction was primarily attributable to lower volume of capital equipment purchases from IBM in the first quarter of 1994, compared with the fourth quarter of 1993 and the payment to IBM of $254.0 million of current tax liability. Amounts due to IBM Corporation and affiliates represent trade payables arising from purchases of equipment for term leases and installment receivables, working capital financing receivables for dealers and remarketers, and software license fees, with payment terms comparable to those offered to other IBM customers. Also included in due to IBM Corporation and affiliates are income taxes currently payable under the intercompany tax allocation agreement. Total stockholder's equity at March 31, 1994 was $1,059.8 million, down $90.9 million from year-end 1993. The decline in stockholder's equity reflects the payment of a $150.0 million dividend to IBM in the first quarter of 1994, offset by net earnings of $59.1 million for the quarter. At March 31, 1994, the Company's debt to equity ratio was 6.2:1, compared with 5.7:1 at year-end 1993, and 6.8:1 at March 31, 1993. -7- :hp3.TOTAL CASH PROVIDED BEFORE DIVIDENDS:ehp3. Total cash provided before dividends was $88.6 million for the three months ended March 31, 1994, compared with $257.7 million for the same 1993 period. Cash and cash equivalents at March 31, 1994 totaled $548.5 million, a decrease of $61.4 million compared with the balance at December 31, 1993. Total cash provided before dividends reflects $201.3 million of cash provided by investing and financing activities, reduced by $112.7 million of cash used in operating activities. :hp3.INCOME FROM LEASES:ehp3. Income from leases decreased by 20 percent to $128.4 million for the three months ended March 31, 1994, from $160.1 million for the same period in 1993. The decline is the result of the securitization and sale of capital leases during the fourth quarter of 1993, and a decrease in financing originated during 1993 and the first three months of 1994. Income from leases includes lease income resulting from remarketing transactions. For the three months ended March 31, 1994, this income increased 16 percent from the comparable 1993 period. Lease income from remarketing transactions amounted to $24.6 million for the three-month period ended March 31, 1994. On a periodic basis, the Company reassesses the future residual values of its portfolio of leases. In accordance with generally accepted accounting principles, anticipated increases in specific future residual values may not be recognized before realization, and are thus a source of potential future profits. Anticipated decreases in specific future residual values, considered to be other than temporary, must be recognized currently. A review of the Company's $700.0 million residual value portfolio at March 31, 1994, indicated that the overall estimated future value of the portfolio continues to be greater than the value currently recorded. No declines in the future residual values of leased equipment were identified, nor reductions recorded, in the first quarter of 1994, compared with a $7.0 million reduction to income from leases to recognize declines in the same 1993 period. :hp3.INCOME FROM LOANS:ehp3. Income from loans decreased by 33 percent to $21.1 million for the three months ended March 31, 1994, compared with the respective 1993 period. This decline was primarily the result of the securitization and sale of loans during the fourth quarter of 1993, and a decrease in financing originated during 1993 and the first quarter of 1994. -8- :hp3.INCOME FROM WORKING CAPITAL FINANCING:ehp3. Income from working capital financing increased 33 percent to $30.5 million for the three months ended March 31, 1994, compared with $23.0 million in the same period in 1993. This increase was primarily due to generally higher interest rates charged and growth in the size of the average working capital financing receivables outstanding during the first three months of 1994, compared with the same 1993 period, despite the securitization and sale of such receivables during the fourth quarter of 1993. The growth reflects increased volumes of IBM personal computer and workstation products financed by the Company throughout the first quarter of 1994, as well as an increase in the volume of financing provided for non-IBM products for IBM-authorized resellers. :hp3.EQUIPMENT SALES:ehp3. Equipment sales amounted to $150.5 million for the first quarter of 1994, compared with $164.7 million for the same period in 1993. Included in these amounts is revenue from outright sales and sales-type leases of Company-owned equipment with either existing lessees or, when equipment is returned, with a new customer. Gross profit on equipment sales for the first quarter of 1994 was $12.4 million, a decrease of 25 percent compared with the same 1993 period. The gross profit margin for the first quarter of 1994 was 8.3 percent, down from 10.1 percent for the first quarter of 1993 and up from 7.6 percent for the 1993 full year. This decrease from the first quarter of 1993 reflects reduced equipment sales, as well as higher refurbishment charges. :hp3.OTHER INCOME:ehp3. Other income increased by 11 percent to $29.6 million for the three months ended March 31, 1994. Included in other income is interest income earned on cash and cash equivalents, fees for managing IBM's state and local government installment and lease financing receivables portfolio, and fees for the servicing of financing receivables sold. :hp3.TOTAL FINANCE AND OTHER INCOME:ehp3. For the three months ended March 31, 1994, total finance and other income decreased by 11 percent to $360.1 million, compared with the same 1993 period. The decline was largely due to reductions in income from leases, income from loans and equipment sales, offset by increases in income from working capital financing and other income. -9- :hp3.INTEREST EXPENSE:ehp3. Interest expense declined as the Company's average outstanding debt decreased and the average cost of debt was reduced. Interest expense decreased by 20 percent to $75.4 million for the three months ended March 31, 1994, compared with $93.9 million for the same period in 1993. The Company's year-to-date average cost of debt through March 31, 1994, decreased to 4.66 percent from 4.91 percent for the same period in 1993. :hp3.SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:ehp3. Selling, general, and administrative expenses were $40.2 million for the first quarter of 1994, a decrease of 21 percent compared with the same 1993 period. The decrease is a direct result of the continuing efforts to manage expenses and reflects savings realized from the Company's actions in the second quarter of 1993 to reduce its infrastructure and bring its resources in line with current market conditions. :hp3.PROVISION FOR RECEIVABLE LOSSES:ehp3. The Company's portfolio of capital equipment leases and loans is predominantly with investment grade customers. The Company generally takes a security interest in any underlying equipment financed. The portfolio is diversified by geography, industry and individual unaffiliated customer. Working capital financing receivables are secured by the underlying inventory and accounts receivable financed. The provision for receivable losses decreased to $9.0 million for the quarter ended March 31, 1994, compared with $19.6 million for the same period in 1993. This decrease reflects the reduction in the amount of capital equipment financed for the first three months of 1994 and an economic environment that continues to improve. Additionally, the Company continues to effectively manage credit risk and contain losses. :hp3.NET EARNINGS:ehp3. Net earnings increased to $59.1 million for the first quarter of 1994, compared with $58.3 million for the same 1993 period. The Company's expanding working capital financing business, large and profitable capital equipment remarketing operations, credit risk management, lower average cost of borrowing, and the containment of operating expenses contributed to the favorable performance during the first quarter of 1994. :hp3.RETURN ON AVERAGE EQUITY:ehp3. The results for the first three months of 1994 yielded an annualized return on average equity of 22.2 percent, compared with 20.2 percent for the comparable 1993 period. :hp3. NEW ACCOUNTING STANDARD:ehp3. In May 1993, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards 115, "Accounting for Certain Investments in Debt and Equity Securities," which prescribes the accounting for debt and equity securities held as assets. This statement is effective for fiscal years beginning after December 15, 1993. The Company implemented this statement, effective January 1, 1994. The implementation had no material impact to the Company's financial position and results of operations. :hp3.CLOSING DISCUSSION:ehp3. The Company's resources continue to be sufficient to enable it to carry out its mission of supporting customers in their acquisition of IBM products and services by providing competitive financing, and contributing to the growth and stability of IBM earnings. [SIGNATURE] Part II - Other Information ___________________________ Item 1. Legal Proceedings __________________________ None material. Item 6(b). Reports on Form 8-K _______________________________ No reports on Form 8-K have been filed during the first three months of 1994. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. IBM CREDIT CORPORATION ______________________ (Registrant) Date: May 11, 1994 By: A. R. Schleicher _________________ _____________________ A. R. Schleicher Vice President & Assistant General Manager, Finance & Risk Management and Chief Financial Officer EX-27 2 QTRLY-SCHED WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE. Data Stated in Thousands Voluntary Schedule - Certain Financial Information
First First Year to Year to Regulation Statement Caption Quarter Quarter Date Date 1994 1993 1994 1993 5-02(1) Cash and cash equivalents 548,506 681,214 - - 5-02(18) Total assets 9,541,673 10,900,900 - - 5-02(22) Long-term debt 2,141,147 2,179,706 - - 5-02(30) Capital stock 438,811 438,811 - - 5-02(31)(a)(3)(ii) Retained earnings 620,979 699,949 - - 5-03(b)(1)(a) Equipment sales 150,530 164,746 150,530 164,746 5-03(b)(1)(c) Income from rentals, net 38,788 35,006 38,788 35,006 5-03(b)(1)(d) Income from capital leases 89,623 125,050 89,623 125,050 5-03(b)(1)(d) Income from loans 21,063 31,290 21,063 31,290 5-03(b)(1)(d) Income from working capital financing 30,488 22,979 30,488 22,979 5-03(b)(1)(d) Other income 29,642 26,586 29,642 26,586 5-03(b)(2)(a) Cost of equipment sales 138,086 148,143 138,086 148,143 5-03(b)(8) Interest expense 75,425 93,931 75,425 93,931 5-03(b)(10) Earnings before income taxes 97,411 93,345 97,411 93,345 5-03(b)(11) Provision for income taxes 38,350 35,094 38,350 35,094 5-03(b)(19) Net earnings 59,061 58,251 59,061 58,251
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