-----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, hk5yz0ypNfvsLoBs0FG1UcmSL30mnAO97A0F+S3NkarwTCiM1gnahl9aT3kGccYC dda08e4KXhZi7mg5MjR4pg== 0000353524-95-000015.txt : 19950512 0000353524-95-000015.hdr.sgml : 19950512 ACCESSION NUMBER: 0000353524-95-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950511 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: IBM CREDIT CORP CENTRAL INDEX KEY: 0000353524 STANDARD INDUSTRIAL CLASSIFICATION: FINANCE LESSORS [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: 95536628 BUSINESS ADDRESS: STREET 1: 290 HARBOR DR STREET 2: P O BOX 10399 CITY: STAMFORD STATE: CT ZIP: 06904 BUSINESS PHONE: 2039735100 MAIL ADDRESS: STREET 1: 290 HARBOR DR STREET 2: PO BOX 10399 CITY: STAMFORD STATE: CT ZIP: 06904 10-Q 1 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 F O R M 1 0 - Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1995 1-8175 ________________________ (Commission file number) IBM CREDIT CORPORATION _____________________________________________________ (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 May 1, 1995, 899 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 May 1, 1995: 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, 1995 and December 31, 1994. . . . . . . . . 1 Consolidated Statement of Earnings for the three months ended March 31, 1995 and 1994 . . . . . . . . . . 2 Consolidated Statement of Cash Flows for the three months ended March 31, 1995 and 1994 . . . 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 IBM CREDIT CORPORATION CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Dollars in thousands)
At At March 31, December 31, 1995 1994 __________ ____________ ASSETS: Cash and cash equivalents. . . . . . . . $ 226,981 $ 614,339 Marketable securities. . . . . . . . . . 121,237 - Net investment in capital leases . . . . 3,824,393 3,687,971 Equipment on operating leases, net . . . 1,620,431 1,573,242 Loans receivable . . . . . . . . . . . . 1,095,090 1,070,619 Working capital financing receivables. . 2,145,803 2,135,020 Investments and other assets . . . . . . 429,294 382,910 Due and deferred from receivable sales . 164,500 203,614 __________ ___________ Total Assets $9,627,729 $9,667,715 ========== =========== LIABILITIES AND STOCKHOLDER'S EQUITY: Liabilities: Short-term debt. . . . . . . . . . . . . $4,602,655 $4,355,038 Due to IBM Corporation and affiliates. . 1,299,935 1,493,449 Interest and other accruals. . . . . . . 445,506 462,277 Deferred income taxes. . . . . . . . . . 642,380 651,911 Long-term debt . . . . . . . . . . . . . 1,478,090 1,458,822 Long-term debt, IBM Corporation. . . . . 125,000 125,000 __________ ___________ Total liabilities. . . . . . . . . . . . 8,593,566 8,546,497 __________ ___________ Stockholder's equity: Capital stock, par value $1 per share; Shares authorized: 10,000; Shares issued and outstanding: 899. . 453,711 453,711 Retained earnings. . . . . . . . . . . . 580,452 667,507 __________ ___________ Total stockholder's equity . . . . . . . 1,034,163 1,121,218 __________ ___________ Total Liabilities & Stockholder's Equity $9,627,729 $9,667,715 ========== =========== The accompanying notes are an integral part of this statement.
-1- IBM CREDIT CORPORATION CONSOLIDATED STATEMENT OF EARNINGS FOR THE THREE MONTHS ENDED MARCH 31: (Dollars in thousands)
1995 1994 ________ ________ FINANCE AND OTHER INCOME: Income from leases: Capital leases . . . . . . . . . . . . $ 61,409 $ 89,623 Operating leases (net of depreciation: 1995- $172,537 and 1994- $156,528). . 50,936 38,788 ________ ________ 112,345 128,411 Income from loans . . . . . . . . . . . . 26,536 21,063 Income from working capital financing . . 51,198 30,488 Equipment sales . . . . . . . . . . . . . 114,103 150,530 Other income. . . . . . . . . . . . . . . 33,299 29,642 ________ ________ Total finance and other income . . . . 337,481 360,134 ________ ________ COST AND EXPENSES: Interest. . . . . . . . . . . . . . . . . 86,296 75,425 Cost of equipment sales . . . . . . . . . 100,835 138,086 Selling, general, and administrative. . . 40,870 40,208 Provision for receivable losses . . . . . 13,706 9,004 ________ ________ Total cost and expenses. . . . . . . . 241,707 262,723 ________ ________ EARNINGS BEFORE INCOME TAXES. . . . . . . . 95,774 97,411 Provision for income taxes. . . . . . . . . 37,829 38,350 ________ ________ NET EARNINGS. . . . . . . . . . . . . . . . $ 57,945 $ 59,061 ======== ======== The accompanying notes are an integral part of this statement.
-2- IBM CREDIT CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31: (Dollars in thousands) 1995 1994*
__________ __________ CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings . . . . . . . . . . . . . . . . . $ 57,945 $ 59,061 Adjustments to net earnings: Depreciation and amortization . . . . . . . . 172,636 156,106 Provision for receivable losses . . . . . . . 13,706 9,004 Decrease in deferred income taxes . . . . . . (11,187) (59,606) Change in interest and other accruals . . . . (24,463) 31,599 Gross profit on equipment sales . . . . . . . (13,268) (12,444) Proceeds from equipment sales. . . . . . . . . 114,103 150,530 Decrease in due to IBM Corporation and affiliates . . . . . . . . . . . . . . . . . (193,514) (446,931) Other, net . . . . . . . . . . . . . . . . . . 28,480 16,287 __________ __________ Cash provided by (used in) operating activities. 144,438 (96,394) __________ __________ CASH FLOWS FROM INVESTING ACTIVITIES: Investment in capital leases . . . . . . . . . (461,939) (251,025) Collection of capital leases, net of income earned. . . . . . . . . . . . . . . . . . . . 307,862 308,990 Investment in equipment on operating lease . . (262,631) (87,312) Investment in loans receivable . . . . . . . . (195,286) (81,775) Collection of loans receivable, net of interest earned . . . . . . . . . . . . . . . 175,450 127,205 Investment in working capital financing receivables, net of cash collected. . . . . . (14,789) 108,370 Purchases of marketable securities . . . . . . (121,237) - Cash payment for business acquired . . . . . . (92,478) - Redemption of Comdisco, Inc. convertible subordinated promissory note. . . . . . . . . 25,000 - Other, net . . . . . . . . . . . . . . . . . . 25,604 (7,151) __________ __________ Cash (used in) provided by investing activities. (614,444) 117,302 __________ __________ CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of long-term debt . . . 120,000 41,640 Repayment of debt with original maturities: One year or more. . . . . . . . . . . . . . . (151,853) (383,350) Within one year, net of debt issued . . . . . 259,501 409,417 Cash dividends paid to IBM Corporation . . . . (145,000) (150,000) __________ __________ Cash provided by (used in) financing activities. 82,648 (82,293) __________ __________ Decrease in cash and cash equivalents . . . . . (387,358) (61,385) Cash and cash equivalents at January 1. . . . . 614,339 609,891 __________ __________ Cash and cash equivalents at March 31 . . . . . $ 226,981 $ 548,506 ========== ========== The accompanying notes are an integral part of this statement. * Reclassified to conform with 1995 presentation.
-3- IBM CREDIT CORPORATION Notes to Consolidated Financial Statements 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. RATIO OF EARNINGS TO FIXED CHARGES: The ratio of earnings to fixed charges, calculated in accordance with applicable Securities and Exchange Commission requirements, was 2.10 and 2.28 for the three months ended March 31, 1995 and 1994, respectively. ACQUISITION OF CHRYSLER SYSTEMS INC.: On February 8, 1995, the Company acquired all of the issued and outstanding stock of Chrysler Systems Inc. and certain of its affiliates for $133.5 million. The acquisition was consummated pursuant to a share purchase agreement with certain Chrysler Corporation subsidiaries (the Seller). The purchase price was funded by the Company's cash on hand and credits issued to the Seller that are to be applied against certain future obligations to the Company. IBM CS Systems, Inc., as the company is now known, buys, sells and leases data processing equipment, and provides related technology management services such as equipment procurement and asset management. The transaction was accounted for as a purchase and IBM CS Systems, Inc. is included in the Company's consolidated financial statements from the date of acquisition. RELATED PARTY TRANSACTIONS: The Company provides capital equipment financing at market rates to International Business Machines Corporation (IBM) and affiliated companies for both IBM and non-IBM products. During the first three months of 1995, the Company originated $45.5 million of such financing, compared with $60.4 million for the first three months of 1994. Included in the Company's lease and loan portfolio was approximately $858.2 million and $927.2 million, related to IBM and affiliated companies, at March 31, 1995 and December 31, 1994, respectively. Of these amounts, $745.7 million and $752.1 million were included in the Company's operating lease portfolio at March 31, 1995 and December 31, 1994, respectively. The pretax income earned from operating leases to IBM and affiliated companies, net of depreciation expense, was approximately $19.3 million and $10.2 million in the first quarter of 1995 and the first quarter of 1994, respectively. -4- Item 2. IBM CREDIT CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW For the three months ended March 31, 1995, the Company originated financing for $3.2 billion of equipment, software and services. Net earnings for the three months ended March 31, 1995, were $57.9 million, yielding an annualized return on average equity of 22.3 percent. As previously described in the Notes to Consolidated Financial Statements, on February 8, 1995, the Company acquired all of the issued and outstanding stock of Chrysler Systems Inc. and certain of its affiliates. Refer to the note on page 4, Acquisition of Chrysler Systems Inc., for details. FINANCING ORIGINATED The Company originated financing for $3.2 billion of equipment, software and services in the first three months of 1995, compared with $2.1 billion in the same 1994 period. Capital equipment financing for end users increased by 88 percent to $1,049.6 million. The increase in capital equipment financing originated is primarily the result of increased placements of new equipment with third-party end users in the first quarter of 1995, compared with the first quarter of 1994, together with 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 36 percent to $2,140.2 million. This growth reflects an increase in the volumes of IBM's workstation products financed by the Company throughout the first three months of 1995, as well as increased volumes of financing provided to information technology resellers for non-IBM products. Capital equipment financings for end users comprised purchases of $693.9 million of information handling systems from IBM, financing originated for installment receivables of $23.1 million, other financing primarily for IBM software and services of $172.1 million, installment and lease financing for state and local government customers of $99.4 million for the account of IBM, and other financing of $61.1 million for equipment and services, as well as selected complementary non-IBM equipment that meets IBM customers' total solution requirements. The purchases of $693.9 million from IBM consisted of $439.8 million for capital leases and $254.1 million for operating leases. -5- REMARKETING ACTIVITIES In addition to originating new financing, the Company remarkets used IBM equipment. This equipment is primarily sourced from the conclusion of lease transactions and is typically remarketed in cooperation with the IBM sales force. The equipment is generally leased or sold to end users. These transactions may be with existing lessees or, when equipment is returned, with new customers. At March 31, 1995, the investment in remarketed equipment on capital and operating leases totaled $612.3 million, a decrease of 2 percent from the 1994 year-end investment of $623.7 million. Income from leases and gross profit on equipment sales, net of write-downs in residual values of certain leased equipment, are included in remarketing activities. Contributions from remarketing activities amounted to $38.5 million for the first three months of 1995, an increase of 3 percent compared with $37.2 million for the same 1994 period. ASSETS Total assets decreased to $9.6 billion at March 31, 1995, compared with $9.7 billion at December 31, 1994. This decrease is primarily the result of payments to IBM of a dividend of $145.0 million and a current tax liability of $175.0 million, offset in part by financings originated exceeding cash collections on capital leases, loans receivable and working capital financing receivables during the first three months of 1995. Marketable securities, presented in the Consolidated Statement of Financial Position at amortized cost which approximates market value, included U.S. treasury securities of $108.7 million and corporate debt securities of $12.5 million at March 31, 1995. The Company intends to hold these securities to maturity. LIABILITIES AND STOCKHOLDER'S EQUITY The assets of the business were financed with $6,205.7 million of debt at March 31, 1995. Total short-term and long-term debt increased by approximately $266.8 million, from $5,938.9 million at December 31, 1994. This increase was primarily the result of increases in long-term debt of $19.3 million, commercial paper outstanding of $194.7 million, medium-term notes of $24.7 million and other short-term debt of $28.1 million. Included in long-term debt at March 31, 1995 and December 31, 1994 was $125.0 million payable to IBM at market terms and conditions, maturing on November 1, 1997. The Company has available $2.7 billion of a shelf registration with the Securities and Exchange Commission. This shelf registration allows the Company rapid access to domestic financial markets. In addition, a subsidiary of the Company has available $450.0 million of a separate shelf registration for asset backed securities. The Company also has commercial paper and medium-term note programs. -6- LIABILITIES AND STOCKHOLDER'S EQUITY (continued) The Company is an authorized borrower of up to $1.6 billion under a $10.0 billion IBM committed global credit facility, and has a liquidity agreement with IBM for $500.0 million. The Company has no borrowings outstanding under the committed global credit facility or the liquidity agreement. The Company also has the option, as approved by the Board of Directors on September 30, 1994, to sell, assign, pledge or transfer up to $4.0 billion of assets to third parties through December 31, 1995. During the fourth quarter of 1994, the Company and IBM signed master loan agreements providing additional funding flexibility to each other. These agreements allow for short-term (up to 270-day) funding, made available at market terms and conditions, upon the request of either the Company or IBM. There are no borrowings outstanding under these agreements. These financing sources, along with the Company's internally generated cash and medium-term note and commercial paper programs, provide flexibility to the Company to fund its lease and loan portfolio and working capital requirements and to service debt. The Company uses currency related and interest rate related agreements to lower costs of funding its business, to diversify sources of funding, or to manage interest rate and currency exposures arising from mismatches between assets and liabilities. The Company enters into such financial instruments solely for hedging purposes. The Company does not enter into such financial instrument transactions for trading or other speculative purposes. The Company routinely evaluates existing and potential counterparty credit exposures associated with such financial instrument transactions to ensure that these exposures remain within credit guidelines. The Company does not anticipate any material adverse effect on its financial position resulting from its use of these instruments, nor does it anticipate nonperformance by any of its counterparties. Due to IBM Corporation and affiliates decreased by $193.5 million to $1,299.9 million at March 31, 1995, from $1,493.4 million at December 31, 1994. This decrease was primarily attributable to the current tax liability payment of $175.0 million made to IBM in the first quarter of 1995. Due to IBM Corporation and affiliates includes amounts of 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, typically with terms comparable to those offered to other IBM customers, unless the Company is participating in IBM product promotions. 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, 1995, was $1,034.2 million, down approximately $87.1 million from year-end 1994. The decline in stockholder's equity reflects the payment of $145.0 million in dividends to IBM in the first quarter of 1995, offset by net earnings of $57.9 million for the first three months of 1995. At March 31, 1995, the Company's debt-to-equity ratio was 6.0:1, compared with 5.3:1 at year-end 1994, and 6.2:1 at March 31, 1994. -7- TOTAL CASH USED BEFORE DIVIDENDS Total cash used before dividends was $242.4 million for the three months ended March 31, 1995, compared with total cash provided before dividends of $88.6 million for the same 1994 period. Total cash used before dividends reflects $391.8 million of cash used in investing and financing activities before dividends, offset by $149.4 million of cash provided by operating activities for the first three months of 1995. Cash and cash equivalents at March 31, 1995, totaled $227.0 million, a decrease of $387.4 million compared with the balance at December 31, 1994. INCOME FROM LEASES Income from leases decreased by 13 percent to $112.3 million for the three months ended March 31, 1995, from $128.4 million for the same 1994 period. This decline resulted from lower asset balances in the lease portfolio in the first quarter of 1995, compared with the same 1994 period, which in turn were primarily caused by the securitization and sale of capital lease receivables in the third quarter of 1994. The income from leases recognized by IBM CS Systems, Inc. partially offset this decline. Income from leases includes lease income resulting from remarketing transactions. Lease income from remarketing transactions was $25.2 million for the three months ended March 31, 1995, an increase of 2 percent from the comparable 1994 period. 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 $581.7 million residual value portfolio at March 31, 1995, indicated that the overall estimated future value of the portfolio continues to be greater than the value currently recorded. No material declines in the future residual value of leased equipment were identified, nor reductions recorded, in either the first quarter of 1995 or the first quarter of 1994. INCOME FROM LOANS Income from loans increased by 26 percent to $26.5 million for the three months ended March 31, 1995, compared with the respective 1994 period. This increase resulted from higher asset balances, which in turn were primarily the result of an increase in financing originated for software and services during 1994 and the first three months of 1995. This increase was partially offset by the securitization and sale of loan receivables in the third quarter of 1994. -8- INCOME FROM WORKING CAPITAL FINANCING Income from working capital financing increased by 68 percent to $51.2 million for the three months ended March 31, 1995, compared with the same 1994 period. This increase was primarily due to growth in the average working capital financing receivables outstanding and generally higher interest rates charged during the first three months of 1995, compared with the same 1994 period. The growth in average working capital financing receivables outstanding primarily reflects increased originations as discussed in the "Financing Originated" section. EQUIPMENT SALES Equipment sales amounted to $114.1 million for the first quarter of 1995, compared with $150.5 million for the same period in 1994. The revenue associated with outright sales and sales-type leases is included in equipment sales. Company-owned equipment may be sold or leased to existing lessees or, when equipment is returned, to new customers. Gross profit on equipment sales for the first quarter of 1995 increased to $13.3 million, compared with $12.4 million for the same 1994 period. The gross profit margin for the first quarter of 1995 was 11.6 percent, up from 8.3 percent for the first quarter of 1994. This increase is primarily due to higher margins realized on high-end processors during the first quarter of 1995, compared with the same 1994 period, because of market demand which generally exceeded supply. OTHER INCOME Other income increased by approximately 13 percent to $33.3 million for the first quarter of 1995, from $29.6 million for the same 1994 period. This increase is largely attributable to a $5.0 million pretax gain the Company recognized upon Comdisco, Inc.'s redemption of the convertible subordinated promissory note on March 1, 1995. Included in other income is interest income earned on cash and cash equivalents and notes, as well as fees for managing IBM's state and local government installment and lease financing receivables portfolio, and fees for the servicing of financing receivables sold. TOTAL FINANCE AND OTHER INCOME Total finance and other income decreased by 6 percent to $337.5 million for the first quarter of 1995, from $360.1 million for the same 1994 period. This decline was largely due to reductions in income from leases and equipment sales, partially offset by increases in income from loans, income from working capital financing and other income. -9- INTEREST EXPENSE As a result of the rising interest rate environment, interest expense increased by 14 percent to $86.3 million for the three months ended March 31, 1995, compared with $75.4 million for the same period in 1994. The Company's year-to-date average cost of debt through March 31, 1995, increased to 5.89 percent, from 4.66 percent for the same period in 1994. SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES Selling, general, and administrative expenses increased 2 percent to $40.9 million for the first quarter of 1995, from $40.2 million for the same 1994 period. This increase is primarily a result of expenses incurred by IBM CS Systems, Inc. since the acquisition date. PROVISION FOR RECEIVABLE LOSSES The Company's portfolio of capital equipment leases and loans is predominantly with investment grade customers. The Company generally retains ownership or takes a security interest in any underlying equipment financed. The portfolio is diversified by geography, industry, and individual unaffiliated customer. With the continued growth of the Company's working capital financing business in 1994 and the first quarter of 1995, the concentration of such financings for certain large dealers and remarketers of information industry products has become more significant. Such loans are typically collateralized by the inventory and accounts receivable of the dealers and remarketers. The Company does not believe that this risk will have a material adverse effect on its financial position or results of operations. The provision for receivable losses increased to $13.7 million for the quarter ended March 31, 1995, compared with $9.0 million for the same period in 1994. This increase reflects the growth in the amount of capital equipment and working capital financing originated during the first three months of 1995, the Company's timely recognition of probable receivable losses, and its revised estimate of the recoverability of specific receivables. NET EARNINGS Net earnings decreased by 2 percent to $57.9 million for the first quarter of 1995, compared with $59.1 million for the same 1994 period. The Company's expanding working capital financing business and large and profitable capital equipment remarketing operations contributed to a favorable performance during the first quarter of 1995. RETURN ON AVERAGE EQUITY The results for the first three months of 1995 yielded an annualized return on average equity of 22.3 percent, compared with 22.2 percent for the comparable 1994 period. -10- NEW ACCOUNTING STANDARDS The Financial Accounting Standards Board issued Statement of Financial Accounting Standards (SFAS) 114, "Accounting by Creditors for Impairment of a Loan," in May 1993 and SFAS 118, "Accounting by Creditors for Impairment of a Loan--Income Recognition and Disclosures," an amendment of SFAS 114, in October 1994. These standards prescribe impairment measurements and reporting related to certain loans. SFAS 114 and SFAS 118 are effective for fiscal years beginning after December 15, 1994. The Company implemented SFAS 114 and SFAS 118, effective January 1, 1995. The implementation had no material impact on the Company's financial position and results of operations. CLOSING DISCUSSION The Company's resources continue to be sufficient to enable it to carry out its mission of offering customers competitive leasing and financing and providing information technology remarketers with inventory and accounts receivable financing which contribute to the growth and stability of IBM earnings. -11- [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 1995. 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, 1995 By: /s/Allison R. Schleicher ____________ _____________________________ (Allison R. Schleicher) Vice President, Finance and Chief Financial Officer -12- EX-27 2 ITEM 601-27
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM IBM CREDIT CORPORATION'S CONSOLIDATED FINANCIAL STATEMENTS AT AND FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1995 MAR-31-1995 226,981 121,237 1,095,090 0 0 0 0 0 9,627,729 0 0 453,711 0 0 580,452 9,627,729 114,103 337,481 100,835 100,835 40,870 13,706 86,296 95,774 37,829 57,945 0 0 0 57,945 0 0
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