SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 18, 1995
Citicorp
(Exact name of registrant as specified in charter)
Delaware 1-5738 13-2614988
(State or other jurisdiction (IRS Employer
of incorporation) (Commission File Number) Identification Number)
399 Park Avenue, New York, New York 10043
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (212) 559-1000
Not Applicable
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
CITICORP'S PRETAX EARNINGS INCREASE 25% IN 1995 SECOND QUARTER
Key Results
($ Millions, except per-share and ROE)
Second Quarter Six Months
1995 1994 Change 1995 1994 Change
---- ---- ------ ---- ---- ------
Total Revenue $4,923 $4,228 16% $9,588 $8,363 15%
(Adjusted)
Earnings Before
Income Taxes 1,398 1,122 25 2,757 2,121 30
Net Income 853 877 (3) 1,682 1,430 18
Net Income Per Share
(Fully Diluted) 1.57 1.64 (4) 3.09 2.66 16
Return on Total
Equity 18.1% 23.4% 18.4% 19.9%
On July 18, 1995 Citicorp reported net income of $853 million in the 1995
second quarter, 3% lower than the same 1994 quarter, which included $200 million
of tax benefits. Earnings before income taxes were 25% higher in the 1995 second
quarter than in the same year-earlier quarter.
"We're pleased with these results, which show that we can deliver sustained
performance in diverse economic environments around the world," commented John
S. Reed, Chairman of the global bank. "Revenues were up nicely, led by a 10%
increase in our global consumer business and a strong recovery in our capital
markets results from last year's depressed levels."
Citicorp in the quarter completed the redemption of 39% of its PERCS
Conversion Preferred Stock. Late in the quarter, it also initiated a program to
buy back up to $3 billion of common or convertible preferred stock over 24
months and repurchased $50 million of common shares during the quarter.
Citicorp continued to strengthen its balance sheet, with total capital
at $27.3 billion at June 30, 1995; the estimated Tier 1 ratio at 8.4%, slightly
above its target range; and reserves at $5.3 billion. Seven internationally
recognized credit rating agencies, including most recently Standard & Poor's,
now have rated Citibank at the "double A" level in their review of the company
in 1995.
The results in the second quarter reflected the following factors, all
compared with the same 1994 quarter:
<PAGE>
* Operating margin (adjusted revenue less adjusted expense) of
$2.1 billion was 20% higher. The expense/revenue ratio at
57.1% improved from 58.5%. The currency translation effect of
the weak U.S. dollar against European and Asian currencies
increased both revenue and operating expense by approximately 3%.
* The $695 million, or 16%, gain in revenue (adjusted
primarily for the effect of credit card securitizations)
reflected increases in a number of areas: $304 million
from the consumer and corporate businesses in emerging
markets (which included a $70 million increase in
trading-related revenues), $149 million from trading-
related revenues in developed economies, and $124 million
of net increases from investment activities.
(Trading-related revenues include reported trading revenue,
which increased by $306 million, and trading- related net
interest and other revenue, which decreased by $87 million.)
* Adjusted operating expense increased 14% -- approximately 7% from
business expansion, 3% from currency translation, and 1% each from
marketing programs, investments in technology, incentive compensation
and other items.
* Consumer credit costs increased a modest $31 million
to $616 million. Improved loss rates in the U.S. card
portfolio, though bottoming out, partially
offset the effect of higher volumes in U.S. cards.
Economic slowdowns in Mexico and Argentina and
higher losses in Germany also contributed to the
increase. Commercial credit costs at $23 million were
$50 million lower.
* Return on total equity was 18.1%, in line with Citicorp's
target. Average total equity increased by $3.9 billion.
Global Consumer Business
($ Millions) Second Quarter
1995 1994 Change
---- ---- ------
Total Revenue $3,019 $2,752 10%
Total Operating Expense 1,688 1,508 12
Operating Margin 1,331 1,244 7
Credit Costs 616 585 5
Net Income 442 410 8
<PAGE>
Global Consumer revenue grew by $267 million, led by revenues from
emerging markets, which increased 22% to $750 million of the total $3 billion.
The increase in expenses reflected broad business expansion in the Asia Pacific
and Latin America regions, as well as spending for cards in the United States
and Europe.
The number of cards worldwide increased from the same 1994 quarter by 14%
to 57 million, continuing Citibank's global leadership position.
Bankcards in the United States continued to show positive results in
receivables, growth of accounts and charge volume. Revenue growth for U.S.
bankcards, however, continued to be slowed by tighter spreads and the partial
elimination of fees. Managed receivables rose to $40.6 billion, up $6.7 billion
or 20% from June 30, 1994 and total accounts to 24.3 million, up 3.3 million or
16%. Total charge volumes increased by $4.3 billion to $21.2 billion, up 25%.
Marketing programs in the Asia Pacific region contributed to the worldwide
increase in cards. The introduction of the co- branded American Airlines
AAdvantage card in Brazil and Chile received strong customer response, and the
card will be introduced in other Latin American countries later this year.
Spending was increased for activities in preparation for launching Citibank's
co-branded railroad card in Germany.
The consumer business continued its expansion of "model branches," which
are branches redesigned to provide customers with convenient, efficient access
to an array of services. During the quarter, 26 such branches were opened; 17
were conversions of existing branches and 9 were additions to the networks in
Argentina, Australia, Brazil, France, India, the United Kingdom and the United
States. Of Citibank's 1,200 consumer branches worldwide, 350 are now model
branches. Experience continues to show that the operating margin in model
branches is higher than in traditional branches.
Marketing programs to expand volume for Citigold, which is Citibank's
integrated offering to customers actively managing their financial affairs,
continued worldwide, and Citibank launched two additional mutual funds for sale
in Singapore, Hong Kong and Taiwan.
Global Finance Business
($ Millions) Second Quarter
1995 1994 Change
---- ---- ------
Total Revenue $1,716 $1,251 37%
Total Operating Expense 1,004 829 21
Operating Margin 712 422 69
Credit Costs (Recoveries) 7 (8) NM
Net Income 537 282 90
<PAGE>
The 37% increase in Global Finance worldwide revenues primarily
reflected higher trading revenues, driven by customer- related activity, and
venture capital results. Trading-related revenues of $490 million in the quarter
included $88 million of net interest and other revenue, compared with revenues
of $293 million that included $174 million of net interest and other revenue in
the same 1994 quarter. Revenues from the World Corporation Group's multinational
customers increased at double-digit rates.
Net income from corporate banking in emerging markets increased by $124
million to $303 million in the 1995 second quarter, reflecting trading results,
particularly with Latin American customers. Net income from corporate banking
activities in North America, Europe and Japan increased by $131 million to $234
million, as trading and venture capital results improved.
Contributing to the expense increase were compensation increases to support
revenue growth; investments to expand custody- related services, particularly in
Europe; business expansion in emerging markets; and investments in operations
and technology.
During the quarter, Citibank opened a branch for corporate banking in
Bangladesh and a subsidiary in Tanzania, and the Board of Directors approved
plans to open a corporate business branch in South Africa and a representative
office in Romania. Citicorp also received regulatory authorization to underwrite
and deal in equity securities in the United States, which it will use primarily
to link issuers in emerging markets with investors in developed markets.
Citibank won 37 awards in "Euromoney" magazine's annual rankings, including
best bank worldwide and best bank in emerging markets. For the 17th straight
year, Citibank was named best bank for foreign exchange in the "Euromoney"
customer survey.
Other
North America Commercial Real Estate reported a loss of $13 million in the
1995 second quarter, compared with a loss of $72 million in the same 1994
quarter.
Commercial cash basis loans and OREO (Other Real Estate Owned) of $2.7
billion at June 30, 1995 were down sharply from $4.7 billion a year earlier,
principally reflecting reductions in the North America Commercial Real Estate
portfolio.
The cross-border refinancing portfolio reported net income of $36
million, compared with $53 million in the year-earlier quarter.
<PAGE>
Corporate items included a $43 million after-tax investment writedown in
Latin America. The 1994 quarter included net asset gains of $74 million after
tax, which included benefits from completion of the Brazil refinancing
agreement.
Income Taxes
The effective tax rate in the 1995 second quarter was 39%, compared
with 22% in the same 1994 quarter, which included the recognition of certain
deferred tax benefits. The rates for the six month periods were 39% in 1995 and
30% in 1994.
Capital and Reserves
In the second quarter $75 million above credit write-offs was provided
for reserves. The credit loss reserve on the balance sheet totaled $5.3 billion
at June 30, 1995, up from $4.9 billion at June 30, 1994.
Total regulatory capital at June 30, 1995 was $27.3 billion, estimated to
be 12.4% of risk-adjusted assets, and the Tier 1 capital ratio was estimated to
be 8.4%, compared with 7.1% at 1994 midyear.
Tables detailing key financial data, an analysis of operating margin, pretax
earnings, business results and credit indicators follow, along with financial
statements. Further details concerning the financial results will be available
in August in Citicorp's Form 10-Q.
<PAGE>
Page 7 - Citicorp Second Quarter 1995 results - 7/18/95
KEY RATIOS & OTHER CONSOLIDATED FINANCIAL DATA
Second Quarter Six Months
1995 1994 1995 1994
------ ------ ------ ------
NET INCOME ($M):
Before Cumulative Effect
of Accounting Change....... $ 853 $ 877 $1,682 $1,486
After Cumulative Effect
of Accounting Change(A).... 853 877 1,682 1,430
NET INCOME PER COMMON SHARE:
On Common & Common
Equivalent Shares
Before Cumulative Effect
of Accounting Change....... $ 1.76 $ 1.83 $ 3.47 $ 3.07
After Cumulative Effect
of Accounting Change(A).... 1.76 1.83 3.47 2.94
Assuming Full Dilution
Before Cumulative Effect
of Accounting Change....... $ 1.57 $ 1.64 $ 3.09 $ 2.77
After Cumulative Effect
of Accounting Change(A).... 1.57 1.64 3.09 2.66
COMMON STOCKHOLDERS' EQUITY
PER SHARE................... $37.35 $29.54
CLOSING STOCK PRICE
AT QUARTER END.............. $57.88 $39.88
PROFITABILITY RATIOS (Annualized):
Return on Total Assets:
Before Accounting Change.... 1.25% 1.36% 1.25% 1.17%
After Accounting Change(A) 1.25 1.36 1.25 1.15
Return on Common Stockholders'
Equity:
Before Accounting Change.... 20.9% 28.7% 21.3% 24.5%
After Accounting Change(A).. 20.9 28.7 21.3 24.0
Return on Total Stockholders'
Equity:
Before Accounting Change.... 18.1% 23.4% 18.4% 20.3%
After Accounting Change(A).. 18.1 23.4 18.4 19.9
CAPITAL:
<PAGE>
Tier 1 ($B)................. $ 18.6 $ 15.0
Tier 1 & 2 ($B)(B).......... 27.3 24.5
Tier 1 Ratio(B)............. 8.4% 7.1%
Tier 1 & 2 Ratio(B)......... 12.4 11.6
Common Equity as a
% of Total Assets......... 6.0% 4.5%
Total Equity as a
% of Total Assets......... 7.6% 6.1%
DIVIDENDS DECLARED ($M):
Common.................... $ 119 $ 58 $ 238 $ 58
Preferred................. 96 91 188 178
(A) The 1994 results reflect the cumulative effect of adopting
SFAS No. 112, "Employers' Accounting for Postemployment
Benefits," as of January 1, 1994.
(B) 1995 Estimated.
<PAGE>
Page 8 - Citicorp Second Quarter 1995 results - 7/18/95
OPERATING MARGIN
($ Millions)
Second Quarter Six Months
1995 1994 1995 1994
------ ------ ------ ------
Total Revenue............ $4,689 $4,050 $9,132 $7,911
Effect of Credit Card
Securitization.......... 226 264 448 532
Net Cost to Carry(A)..... 8 31 8 60
Capital Building
Transactions............ - (117) - (140)
----- ----- ----- -----
Adjusted Revenue......... 4,923 4,228 9,588 8,363
----- ----- ----- -----
Total Operating Expense.. 2,798 2,456 5,491 4,903
Net OREO Costs (B)....... 13 19 13 (9)
----- ----- ----- -----
Adjusted Operating
Expense................. 2,811 2,475 5,504 4,894
----- ----- ----- -----
Operating Margin......... 2,112 1,753 4,084 3,469
Consumer Credit
Costs (C)............... 616 585 1,152 1,199
Commercial Credit
Costs (D)............... 23 73 25 133
----- ----- ----- -----
Operating Margin
Less Credit Costs....... 1,473 1,095 2,907 2,137
Additional Provision:
Consumer(E)............. 50 50 100 100
Commercial(E)........... 25 50 50 100
Refinancing Portfolio(F) - (10) - (44)
Capital Building
Transactions............ - 117 - 140
----- ----- ----- -----
Income Before Taxes and
Cumulative Effect of
Accounting Change...... $1,398 $1,122 $2,757 $2,121
===== ===== ===== =====
<PAGE>
(A) Principally the net cost to carry commercial cash-basis loans and Other Real
Estate Owned (OREO).
(B) Principally writedowns, gains and losses on sales, and direct revenue and
expense related to commercial OREO.
(C) Principally consumer net credit write-offs adjusted for the effect of credit
card receivables securitization.
(D) Includes commercial net credit write-offs, net cost to carry, and net OREO
costs.
(E) Represents provision for credit losses in excess of net write-offs.
(F) Amount represents the release of a portion of the commerical allowance
attributable to the cross-border refinancing portfolio.
<PAGE>
Page 9 - Citicorp Second Quarter 1995 results - 7/18/95
BUSINESS FOCUS
Net Income (Loss)
($ Millions)
Second Quarter Six Months
1995 1994(A) 1995 1994(A)
------ ------ ------ ------
Global Consumer:
North America, Europe
and Japan............ $ 251 $ 249 $ 525 $ 504
Emerging Markets....... 191 161 381 332
----- ----- ----- -----
Total Global Consumer... 442 410 906 836
----- ----- ----- -----
Global Finance:
North America, Europe
and Japan............ 234 103 365 196
Emerging Markets....... 303 179 506 346
----- ----- ----- -----
Total Global Finance.... 537 282 871 542
----- ----- ----- -----
Core Businesses......... 979 692 1,777 1,378
----- ----- ----- -----
North America Commercial
Real Estate........... (13) (72) (13) (148)
Cross-Border Refinancing
Portfolio............. 36 53 101 101
Corporate Items(B)...... (149) 204 (183) 155
----- ----- ----- -----
853 877 1,682 1,486
Cumulative Effect of
Accounting Change(C).. - - - (56)
----- ----- ----- -----
Total Citicorp.......... $ 853 $ 877 $1,682 $ 1,430
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation. (B) See Corporate
Items page for details. (C) The 1994 results reflect the cumulative effect of
adopting
<PAGE>
SFAS No. 112, "Employers' Accounting for Postemployment
Benefits," as of January 1, 1994.
<PAGE>
Page 10 - Citicorp Second Quarter 1995 results - 7/18/95
GLOBAL CONSUMER
($ Millions) Second Quarter % Six Months %
1995 1994(A)Chg 1995 1994(A)Chg
------ ------ --- ------ ------ ---
Total Revenue.......... $2,790 $2,487 12 $5,495 $4,980 10
----- ----- ----- -----
Total Operating Expense 1,696 1,517 12 3,333 3,016 11
----- ----- ----- -----
Provision For
Credit Losses......... 429 361 19 788 739 7
----- ----- ----- -----
Income Before Taxes.... 665 609 9 1,374 1,225 12
Income Taxes........... 223 199 12 468 389 20
----- ----- ----- -----
Net Income............. $ 442 $ 410 8 $ 906 $ 836 8
===== ===== ===== =====
Average Assets ($B).... $ 119 $ 103 16 $ 118 $ 103 15
Return on Assets....... 1.49% 1.60% - 1.55% 1.64% -
OTHER DATA:
North America, Europe
and Japan:
Net Income............. $ 251 $ 249 1 $ 525 $ 504 4
Average Assets($B)..... 85 74 15 84 75 12
Return on Assets....... 1.18% 1.35% - 1.26% 1.36% -
Emerging Markets:
Net Income............. $ 191 $ 161 19 $ 381 $ 332 15
Average Assets($B)..... 34 29 17 34 28 21
Return on Assets....... 2.25% 2.23% - 2.26% 2.39% -
Adjusted for Credit-
Related Items:
Total Revenue(B):
North America,
Europe and Japan... $2,269 $2,138 6 $4,484 $4,286 5
Emerging Markets.... 750 614 22 1,466 1,229 19
----- ----- ----- -----
Total Global Consumer. $3,019 $2,752 10 $5,950 $5,515 8
===== ===== ===== =====
Other Operating
Expense(C):
North America,
Europe and Japan... $1,272 $1,162 9 $2,512 $2,311 9
Emerging Markets.... 416 346 20 812 680 19
<PAGE>
----- ----- ----- -----
Total Global Consumer. $1,688 $1,508 12 $3,324 $2,991 11
===== ===== ===== =====
Credit Costs (D):
North America,
Europe and Japan... $ 552 $ 545 1 $1,046 $1,121 (7)
Emerging Markets.... 64 40 60 106 78 36
----- ----- ----- -----
Total Global Consumer. $ 616 $ 585 5 $1,152 $1,199 (4)
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) Adjusted principally for the effect of credit card
receivables securitization.
(C) Excludes writedowns, gains and losses on sales, and direct expense related
to OREO for certain real estate lending activities.
(D) Principally net credit write-offs adjusted for the effect of credit card
receivables securitization. Includes U.S. credit card net credit losses for
both held and securitized receivables of $366 million and $703 million for
the 1995 second quarter and six months, respectively, and $346 million and
$725 million for the comparable periods of 1994.
<PAGE>
Page 11 - Citicorp Second Quarter 1995 results - 7/18/95
GLOBAL FINANCE
($ Millions) Second Quarter % Six Months %
1995 1994(A) Chg 1995 1994(A) Chg
------ ------ --- ------ ------ ---
Total Revenue......... $1,717 $1,240 38 $3,166 $2,443 30
----- ----- ----- -----
Total Operating
Expense.............. 995 801 24 1,927 1,590 21
----- ----- ----- -----
Provision For
Credit Losses........ 42 21 NM 58 (13) NM
----- ----- ----- -----
Income Before Taxes... 680 418 63 1,181 866 36
Income Taxes.......... 143 136 5 310 324 (4)
----- ----- ----- -----
Net Income............ $ 537 $ 282 90 $ 871 $ 542 61
===== ===== ===== =====
Average Assets ($B)... $ 141 $ 138 2 $ 141 $ 136 4
Return on Assets...... 1.53% 0.82% - 1.25% 0.80% -
OTHER DATA:
North America, Europe
and Japan:
Net Income............ $ 234 $ 103 NM $ 365 $ 196 86
Average Assets($B).... 95 96 (1) 96 94 2
Return on Assets...... 0.99% 0.43% - 0.77% 0.42% -
Emerging Markets:
Net Income............ $ 303 $ 179 69 $ 506 $ 346 46
Average Assets($B).... 46 42 10 45 42 7
Return on Assets...... 2.64% 1.71% - 2.27% 1.66% -
Adjusted for Credit-
Related Items:
Total Revenue(B):
North America,
Europe and Japan.. $1,001 $ 704 42 $1,807 $1,398 29
Emerging Markets... 715 547 31 1,348 1,057 28
----- ----- ----- -----
Total Global Finance. $1,716 $1,251 37 $3,155 $2,455 29
===== ===== ===== =====
Other Operating
Expense(C):
North America,
Europe and Japan.. $ 654 $ 548 19 $1,277 $1,087 17
Emerging Markets... 350 281 25 660 544 21
<PAGE>
----- ----- ----- -----
Total Global Finance. $1,004 $ 829 21 $1,937 $1,631 19
===== ===== ===== =====
Credit Costs (D):
North America,
Europe and Japan.. $ (2) $ (15) 87 $ (30) $ (61) 51
Emerging Markets... 9 7 29 17 (5) NM
----- ----- ----- -----
Total Global Finance. $ 7 $ (8) NM $ (13) $ (66) 80
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) After adding back the net cost to carry cash-basis loans
and OREO.
(C) Excludes writedowns, gains and losses on sales, and direct revenue and
expense related to OREO.
(D) Includes net write-offs (recoveries), the net cost to carry cash-basis loans
and OREO, as well as writedowns, gains and losses on sales, and direct
revenue and expense related to OREO.
NM Not meaningful,as percentage exceeds 100%.
<PAGE>
Page 12 - Citicorp Second Quarter 1995 results - 7/18/95
NORTH AMERICA COMMERCIAL REAL ESTATE
($ Millions)
Second Quarter % Six Months %
1995 1994(A) Chg 1995 1994(A) Chg
------ ------ --- ------ ------ ---
Total Revenue......... $ 26 $ 25 4 $ 79 $ 45 76
----- ----- ----- -----
Total Operating
Expense.............. 21 35 (40) 52 97 (46)
----- ----- ----- -----
Provision For
Credit Losses........ 22 101 (78) 38 207 (82)
----- ----- ----- -----
(Loss) Before Taxes... (17) (111) 85 (11) (259) 96
Income (Benefit) Taxes (4) (39) 90 2 (111) NM
----- ----- ----- -----
Net Loss.............. $ (13) $ (72) 82 $ (13) $ (148) 91
===== ===== ===== =====
OTHER DATA:
Average Assets ($B)... $ 6 $ 9 (33) $ 6 $ 9 (33)
Adjusted for Credit-
Related Items:
Total Revenue (B)... $ 32 $ 44 (27) $ 91 $ 90 1
Total Operating
Expense (C)........ 33 35 (6) 64 72 (11)
Credit Costs (D).... 16 82 (80) 38 201 (81)
(A) Reclassified to conform to current quarter's presentation.
(B) After adding back the net cost to carry cash-basis loans
and OREO.
(C) Excludes writedowns, gains and losses on sales, and direct revenue and
expense related to OREO.
(D) Includes net write-offs, the net cost to carry cash-basis loans and OREO, as
well as writedowns, gains and losses on sales, and direct revenue and
expense related to OREO.
NM Not meaningful, as percentage exceeds 100%.
<PAGE>
Page 13 - Citicorp Second Quarter 1995 results - 7/18/95
CROSS-BORDER REFINANCING PORTFOLIO
($ Millions)
Second Quarter % Six Months %
1995 1994(A) Chg 1995 1994(A) Chg
------ ------ --- ------ ------ ---
Total Revenue...... $ 45 $ 55 (18) $ 123 $ 82 50
----- ----- ----- -----
Total Operating
Expense........... 5 5 - 10 10 -
----- ----- ----- -----
Provision For
Credit Losses..... - (11) NM - (46) NM
----- ----- ----- -----
Income Before Taxes 40 61 (34) 113 118 (4)
Income Taxes....... 4 8 (50) 12 17 (29)
----- ----- ----- -----
Net Income......... $ 36 $ 53 (32) $ 101 $ 101 -
===== ===== ===== =====
OTHER DATA:
Average Assets ($B) $ 3 $ 3 - $ 3 $ 3 -
CORPORATE ITEMS
($ Millions)
Second Quarter % Six Months %
1995 1994(A) Chg 1995 1994(A) Chg
----- ------ --- ----- ------ ---
Total Revenue...... $ 111 $ 243 (54) $ 269 $ 361 (25)
----- ----- ----- -----
Total Operating
Expense........... 81 98 (17) 169 190 (11)
----- ----- ----- -----
Income Before Taxes 30 145 (79) 100 171 (42)
Income Taxes....... 179 (59) NM 283 16 NM
----- ----- ----- -----
Net(Loss)Income(B). $ (149) $ 204 NM $ (183) $ 155 NM
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) Corporate Items includes net after-tax gains from capital
building transactions of $74 million ($117 million before
<PAGE>
taxes) for the second quarter 1994 and $88 million ($140 million before
taxes) for the six months of 1994. Additionally, Corporate Items includes
the offset created by attributing income taxes to business activities on a
local tax basis. Second quarter and six months 1994 amounts also reflect
$200 million and $220 million, respectively, of deferred tax benefits.
NM Not meaningful, as percentage exceeds 100%.
<PAGE>
Page 14 - Citicorp Second Quarter 1995 results - 7/18/95
ASSET QUALITY
COMMERCIAL CASH-BASIS LOANS AND OREO
($ Millions) 2Q 1Q 4Q 3Q 2Q
1995 1995 1994 1994 1994
----- ----- ----- ----- -----
Comm'l Cash-Basis Loans:
Collateral-Dependent
(At lower of cost or
collateral value)(A).. $1,040 $1,329 $1,347 $1,993 $ 2,289
Other.................. 582 654 666 736 774
----- ----- ----- ----- -----
Comm'l Cash-Basis Loans
(excluding Refinancing) 1,622 1,983 2,013 2,729 3,063
Cross-Border
Refinancing........... 30 58 104 140 165
----- ----- ----- ----- -----
Total Commercial
Cash-Basis Loans....... 1,652 2,041 2,117 2,869 3,228
Commercial OREO(A)...... 1,054 1,014 958 1,427 1,428
----- ----- ----- ----- -----
Total Commercial
Cash-Basis Loans & OREO $2,706 $3,055 $3,075 $4,296 $4,656
===== ===== ===== ===== =====
ALLOWANCE FOR CREDIT LOSSES
2Q 1Q 4Q 3Q 2Q
1995 1995 1994 1994 1994
----- ----- ----- ----- -----
Global Consumer......... $1,923 $1,897 $1,834 $1,790 $1,711
Commercial.............. 3,385 3,373 3,321 3,270 3,201
----- ----- ----- ----- -----
Total................... $5,308 $5,270 $5,155 $5,060 $4,912
===== ===== ===== ===== =====
Reserve for Global Consumer
Sold Portfolios........ $ 467 $ 450 $ 422 $ 467 $ 503
ALLOWANCE AS A PERCENTAGE
OF TOTAL LOANS
2Q 1Q 4Q 3Q 2Q
1995 1995 1994 1994 1994
----- ----- ----- ----- -----
Global Consumer......... 1.91% 1.93% 1.90% 1.97% 2.00%
Commercial.............. 5.90 5.79 5.95 5.90 5.76
Total................... 3.36% 3.37% 3.38% 3.46% 3.48%
<PAGE>
ADDITIONAL DATA
2Q 1Q 4Q 3Q 2Q
1995 1995 1994 1994 1994
Commercial Allowance ----- ------ ------ ------ ------
as a % of Total Commercial
Cash-Basis Loans....... 205% 165% 157% 114% 99%
Commercial Allowance
as a % of Non-Collateral
Dependent Commercial
Cash-Basis Loans....... 553% 474% 431% 373% 341%
Commercial Renegotiated
Loans(B)............... $ 385 $ 338 $ 718 $ 524 $ 417
Consumer Cash-Basis:
Loans................. $2,697 $2,693 $2,604 $2,772 $2,846
Assets Pending
Disposition (At lower
of cost or collateral
value).............. $ 195 $ 209 $ 195 $ 163 $ 468
Consumer OREO........... $ 545 $ 601 $ 569 $ 565 $ 693
Refer to the Asset Quality Notes on the following page.
<PAGE>
Page 15 - Citicorp Second Quarter 1995 results - 7/18/95
ASSET QUALITY NOTES (continued)
(A) The table above presents data in a manner which distinguishes cash-basis
collateral-dependent loans from other cash-basis loans. A cash-basis loan is
defined as collateral dependent when repayment is expected to be provided
solely by the underlying collateral and there are no other available and
reliable sources of repayment, in which case the loans are written down to
the lower of cost or collateral value.
(B) Amount at December 31, 1994 includes $385 million of loans which were
renegotiated during 1994 at a market rate of interest and are performing,
and accordingly, ceased to be reported as Renegotiated Loans in 1995.
<PAGE>
Page 16 - Citicorp Second Quarter 1995 results - 7/18/95
DETAILS OF CREDIT LOSS EXPERIENCE
($ Millions)
2Q 1Q 4Q 3Q 2Q
1995 1995 1994 1994 1994
------ ------ ------ ------ ------
NET WRITE-OFFS
(RECOVERIES):
Global Consumer...... $ 379 $ 309 $ 399 $ 315 $ 311
North America
Commerical
Real Estate........ 22 16 51 62 63
Global Finance....... 17 (9) 28 (41) 9
----- ----- ----- ----- -----
Total Commercial
(excluding)
Refinancing)....... 39 7 79 21 72
----- ----- ----- ----- -----
Cross-Border
Refinancing(A)...... 13 (23) (20) (19) (329)
----- ----- ----- ----- -----
Total................ $ 431 $ 293 $ 458 $ 317 $ 54
===== ===== ===== ===== =====
2Q 1Q 4Q 3Q 2Q
1995 1995 1994 1994 1994
----- ----- ----- ----- -----
PROVISION FOR
CREDIT LOSSES:
Global Consumer...... $ 429 $ 359 $ 449 $ 365 $ 361
North America
Commerical
Real Estate........ 22 16 88 99 101
Global Finance....... 42 16 41 (28) 21
----- ----- ----- ----- -----
Total Commercial
(excluding)
Refinancing)....... 64 32 129 71 122
----- ----- ----- ----- -----
Cross-Border
Refinancing......... - - (20) - (11)
<PAGE>
----- ----- ----- ----- -----
Total................ $ 493 $ 391 $ 558 $ 436 $ 472
===== ===== ===== ===== =====
2Q 1Q 4Q 3Q 2Q
1995 1995 1994 1994 1994
----- ----- ----- ----- -----
COMMERCIAL NET
OREO WRITEDOWNS:
North America
Commercial
Real Estate........ $ 9 $ 10 $ 7 $ 24 $ 12
Global Finance....... (10) (1) (14) (9) (25)
----- ----- ----- ----- -----
Total................ $ (1) $ 9 $ (7) $ 15 $ (13)
===== ===== ===== ===== =====
(A) Includes a credit recovery of $318 million in the second quarter of 1994 as
part of the step-up to market value of instruments received pursuant to the
Brazil refinancing agreement completed in that quarter.
<PAGE>
Page 17 - Citicorp Second Quarter 1995 results - 7/18/95
CONSOLIDATED STATEMENT OF INCOME CITICORP and Subsidiaries
(In Millions of Dollars,
Except Per Share Amounts)
Second Quarter % Six Months %
1995 1994 Chg 1995 1994 Chg
------ ------ --- ------ ------ ---
Interest Revenue.... $5,713 $6,896 (17) $11,310 $13,354 (15)
Interest Expense.... 3,245 4,738 (32) 6,517 9,111 (28)
----- ----- ------ ------
Net Interest Revenue. 2,468 2,158 14 4,793 4,243 13
----- ----- ------ ------
Fees & Commissions.. 1,263 1,239 2 2,525 2,498 1
Trading Account..... 142 19 NM 181 24 NM
Foreign Exchange.... 323 140 NM 628 206 NM
Securities Trans.... 18 123 (85) 44 173 (75)
Other Revenue....... 475 371 28 961 767 25
----- ----- ------ ------
Total Fees, Comm
and Other Revenue... 2,221 1,892 17 4,339 3,668 18
----- ----- ------ ------
TOTAL REVENUE........ 4,689 4,050 16 9,132 7,911 15
----- ----- ------ ------
PROVISION FOR
CREDIT LOSSES....... 493 472 4 884 887 -
----- ----- ------ ------
Operating Expense:
Salaries........... 1,119 974 15 2,199 1,928 14
Employee Benefits.. 343 285 20 641 568 13
Net Premises &
Equipment Expense. 417 370 13 827 760 9
Other Expense...... 919 827 11 1,824 1,647 11
----- ----- ------ ------
TOTAL OPERATING
EXPENSE............. 2,798 2,456 14 5,491 4,903 12
----- ----- ------ ------
INCOME BEFORE TAXES
AND CUMULATIVE EFFECT
OF ACCOUNTING CHANGE 1,398 1,122 25 2,757 2,121 30
Income Taxes........ 545 245 NM 1,075 635 69
----- ----- ------ ------
INCOME BEF. CUMULATIVE
EFFECT OF ACCTG CHANGE 853 877 (3) 1,682 1,486 13
Cumulative Effect of
Accounting Change(A) - - - - (56) NM
----- ----- ------ ------
NET INCOME........... $ 853 $ 877 (3) $ 1,682 $ 1,430 18
===== ===== ====== ======
INCOME APPLICABLE
TO COMMON STOCK..... $ 757 $ 790 (4) $ 1,492 $ 1,256 19
<PAGE>
===== ===== ====== ======
EARNINGS PER SHARE :
On Common & Common Equiv. Shs
Income Before Cumulative
Effect of Acctg Chg. $ 1.76 $ 1.83 $ 3.47 $ 3.07
Income After Cumulative
Effect of Acctg Chg. 1.76 1.83 3.47 2.94
Assuming Full Dilution
Income Before Cumulative
Effect of Acctg Chg. $ 1.57 $ 1.64 $ 3.09 $ 2.77
Income After Cumulative
Effect of Acctg Chg. 1.57 1.64 3.09 2.66
(A) The 1994 results reflect the cumulative effect of adopting
SFAS No. 112, "Employers' Accounting for Postemployment
Benefits," as of January 1, 1994.
NM Not meaningful, as percentage exceeds 100%.
<PAGE>
Page 18 - Citicorp Second Quarter 1995 results - 7/18/95
CONSOLIDATED BALANCE SHEET CITICORP and Subsidiaries
(In Millions of Dollars)
June 30 Dec. 31 %
1995 1994 Chg
------- ------- ---
ASSETS
Cash and Due from Banks......... $ 6,801 $ 6,470 5
Deposits at Interest with Banks. 8,738 6,862 27
Securities:
Held to Maturity............... 5,046 5,092 (1)
Available for Sale............. 13,730 13,602 1
Venture Capital................ 1,713 2,009 (15)
Trading Account Assets.......... 37,875 38,875 (3)
Federal Funds Sold &
Securities Purchased
Under Resale Agreements........ 7,594 6,995 9
Loans, Net of Unearned Income
Consumer....................... 100,852 96,600 4
Commercial..................... 57,335 55,820 3
------- -------
Total Loans, Net............ 158,187 152,420 4
Allowance for Credit Losses..... (5,308) (5,155) (3)
Customers' Acceptance Liability. 1,409 1,420 (1)
Premises & Equipment, Net....... 4,363 4,062 7
Interest & Fees Receivable...... 2,680 2,654 1
Other Assets.................... 14,166 15,183 (7)
------- -------
Total........................... $256,994 $250,489 3
======= =======
LIABILITIES
Non-Int. Deposits (in the U.S.). $ 12,421 $ 13,648 (9)
Int. Deposits (in the U.S.)..... 36,411 35,699 2
Non-Int. Deposits (Outside the
U.S.).......................... 8,473 7,212 17
Int. Deposits(Outside the U.S.). 105,817 99,167 7
------- -------
Total Deposits.............. 163,122 155,726 5
Trading Account Liabilities..... 23,111 22,382 3
Purchased Funds &
Other Borrowings............... 16,662 20,907 (20)
Acceptances Outstanding......... 1,419 1,440 (1)
Accrued Taxes & Other Expenses.. 5,359 5,493 (2)
Other Liabilities............... 9,110 8,878 3
Long-Term Debt.................. 17,375 16,497 5
Subordinated Capital Notes...... 1,337 1,397 (4)
STOCKHOLDERS' EQUITY
Preferred Stock
(Without Par Value)............ 4,020 4,187 (4)
<PAGE>
Common Stock (Par value $1.00).. 441 421 5
Surplus......................... 4,887 4,194 17
Retained Earnings............... 10,817 9,561 13
Net Unrealized Gains-
Securities Available for Sale.. 204 278 (27)
Foreign Currency Translation.... (408) (471) 13
Common Stock in Treasury,
at Cost........................ (462) (401) (15)
------- -------
Total Stockholders' Equity.. 19,499 17,769 10
------- -------
Total........................... $256,994 $250,489 3
======= =======
<PAGE>
Page 19 - Citicorp Second Quarter 1995 results - 7/18/95
ADDITIONAL FINANCIAL DATA
2Q 1Q 4Q 3Q 2Q
1995 1995 1994 1994 1994
------ ------ ------ ------ ------
NET INTEREST
REVENUE(A)
Net Interest
Revenue($M)..... $ 2,476 $ 2,333 $ 2,328 $ 2,352 $ 2,170
Net Interest
Margin.......... 4.42% 4.23% 4.21% 4.37% 4.15%
ADJUSTED TO EXCLUDE
THE EFFECT OF CREDIT
CARD SECURITIZATION:
Net Interest
Revenue($M)..... $ 2,973 $ 2,801 $ 2,798 $ 2,862 $ 2,710
Net Interest
Margin.......... 4.80% 4.61% 4.61% 4.80% 4.64%
CONSOLIDATED AVERAGE
BALANCES
2Q 1Q 4Q 3Q 2Q
1995 1995 1994 1994 1994
------ ------ ------ ------ ------
Loans ($B):
Consumer........ $ 99 $ 96 $ 93 $ 87 $ 84
Commercial...... 57 56 56 56 55
------ ------ ------ ------ ------
Total Average
Loans........... $ 156 $ 152 $ 149 $ 143 $ 139
====== ====== ====== ====== ======
Total Average
Assets($B)...... $ 273 $ 269 $ 267 $ 265 $ 258
Avg. Interest
Earning
Assets($B)...... $ 225 $ 224 $ 219 $ 214 $ 210
<PAGE>
Common
Stockhlders'
Equity ($M)..... $14,568 $ 13,653 $ 13,003 $ 12,023 $ 11,049
Preferred
Equity ($M)..... 4,326 4,262 4,187 4,116 3,975
------ ------ ------ ------ ------
Total Average
Stockholders'
Equity ($M)..... $18,894 $ 17,915 $ 17,190 $ 16,139 $ 15,024
====== ====== ====== ====== ======
(A) Taxable Equivalent Basis.
<PAGE>
Page 20 - Citicorp Second Quarter 1995 results - 7/18/95
EARNINGS PER SHARE DATA
(Before Cumulative Effect
of Accounting Change in 1994)
Second Quarter Six Months
1995 1994 1995 1994
------- ------- ------- -------
On Common and Common
Equivalent Shares(A):
Earnings($ Millions).. $ 780 $ 813 $ 1,539 $ 1,359
Shares (in thousands). 444,489 443,285 443,607 442,272
Earnings Per Share.... $ 1.76 $ 1.83 $ 3.47 $ 3.07
Assuming Full Dilution(B):
Earnings($ Millions).. $ 814 $ 847 $ 1,607 $ 1,427
Shares (in thousands). 519,471 516,760 520,794 515,530
Earnings Per Share.... $ 1.57 $ 1.64 $ 3.09 $ 2.77
COMMON SHARES OUTSTANDING
(In Thousands)
End-Of-Period.......... 414,403 391,281
(A) For earnings per share on common and common equivalent shares, dividends on
Conversion Preferred Stock, Series 15 ($23 million in the second quarter of
1995 and 1994 and $47 million in both six month periods) are added back to
income applicable to common stock, and the number of shares issuable on
conversion (29 million shares in the second quarter of 1995, 33 million
shares for the six month period of 1995, and 43 million shares in the second
quarter
<PAGE>
and six month period of 1994) are added back to weighted-average shares
outstanding. Also added to shares outstanding are other common equivalent
shares and, as to the undistributed portion of earnings, book value shares
issuable under certain benefit plans.
(B) For earnings per share assuming full dilution, the dividends on Conversion
Preferred Stock, Series 15 (see amounts in Note (A) above) are added back to
income applicable to common stock, and the number of shares issuable on
conversion (29 million shares in the second quarter of 1995, 33 million
shares for the six month period of 1995, and 43 million shares in the second
quarter and six month period of 1994) are added to weighted-average shares
outstanding. Additionally, dividends on Convertible Preferred Stock, Series
12 and 13 ($34 million in the second quarter of 1995 and 1994 and $68
million in both six month periods) are also added back to income applicable
to common stock, and the shares issuable on conversion (73 million shares)
are added to shares outstanding. The number of common equivalent and book
value shares are calculated on a fully diluted basis as well.
<PAGE>
Page 21 - Citicorp Second Quarter 1995 results - 7/18/95
OTHER REVENUE DATA
Second Quarter Six Months
1995 1994(A) 1995 1994(A)
------ ------ ------ ------
OTHER REVENUE
($ Millions)
Securitized Credit
Card Receivables............$ 244 $ 236 $ 460 $ 444
Venture Capital ............. 188 25 273 104
Affiliate Earnings........... 52 52 107 117
Mortgage Pass-Through
Securitization Activity..... 14 (9) 15 (47)
Foreign Currency Translation
Gains....................... 2 7 5 7
Capital Building Transactions - 46 - 69
Net Asset Gains and
Other Items................. (25) 14 101 73
----- ----- ----- -----
Total......................$ 475 $ 371 $ 961 $ 767
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report and amendment to be signed on its
behalf by the undersigned thereunto duly authorized.
CITICORP
(Registrant)
By:/s/ Thomas E. Jones
-----------------------------
Thomas E. Jones
Executive Vice President
A Principal Financial Officer
Dated: July 21, 1995
<TABLE>
<CAPTION>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
(In Millions)
EXCLUDING INTEREST ON DEPOSITS: SIX MONTHS
ENDED
JUNE 30
1994 1993 1992 1991 1990 1995 1994
------ ------- ------- ------- ------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) 5,906 6,324 5,826 5,973 9,414 2,083 4,052
INTEREST FACTOR IN RENT EXPENSE 143 147 161 171 173 71 72
------- ------- ------- ------- ------- ------- ------
TOTAL FIXED CHARGES 6,049 6,471 5,988 6,144 9,587 2,154 4,124
INCOME:
NET INCOME(LOSS) 3,422(A) 1,919(B) 722 (914)(C) 318(D) 1,682 1,486(A)
INCOME TAXES 1,189 941 696 677 508 1,075 635
FIXED CHARGES 6,049 6,471 5,988 6,144 9,587 2,154 4,124
------- ------- ------- ------- -------- ------- -------
TOTAL INCOME 10,660 9,331 7,406 5,907 10,413 4,911 6,245
======= ======= ======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 1.76 1.44 1.24 0.96(E) 1.09 2.28 1.51
======= ======= ======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 14,902 16,121 16,327 17,089 23,798 6,517 9,111
INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173 71 72
------- ------- ------- ------- ------- ------- -------
TOTAL FIXED CHARGES 15,045 16,268 16,489 17,260 23,971 6,588 9,183
INCOME:
NET INCOME(LOSS) 3,422(A) 1,919(B) 722 (914)(C) 318(D) 1,682 1,486(A)
INCOME TAXES 1,189 941 696 677 508 1,075 635
FIXED CHARGES 15,045 16,268 16,489 17,260 23,971 6,588 9,183
------- ------- ------- ------- ------- ------- -------
TOTAL INCOME 19,656 19,128 17,907 17,023 24,797 9,345 11,304
======= ======= ======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.31 1.18 1.09 0.99(E) 1.03 1.42 1.23
======= ======= ======= ======= ======= ======= ======
(A) NET INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1994 AND THE FULL YEAR 1994
EXCLUDES THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF FINANCIAL ACCOUNTING
STANDARDS NO. 112, "EMPLOYERS' ACCOUNTING FOR POSTEMPLOYMENT BENEFITS", OF $(56)
MILLION.
(B) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1993 EXCLUDES THE
CUMULATIVE EFFECT OF ADOPTING STATEMENT OF FINANCIAL STANDARDS NO. 109,
"ACCOUNTING FOR INCOME TAXES", OF $300 MILLION.
(C) NET LOSS FOR THE YEAR ENDED DECEMBER 31, 1991 EXCLUDES THE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE FOR VENTURE CAPITAL INVESTMENTS OF $457 MILLION.
(D) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1990 EXCLUDES THE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE FOR CERTAIN DERIVATIVE PRODUCTS OF $140 MILLION.
(F) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER FIXED
CHARGES BY THE AMOUNT OF $237 MILLION. </TABLE>
<PAGE>
<TABLE>
<CAPTION>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
INCLUDING PREFERRED STOCK DIVIDENDS
(In Millions)
SIX MONTHS
EXCLUDING INTEREST ON DEPOSITS: ENDED
JUNE 30
1994 1993 1992 1991 1990 1995 1994
------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) 5,906 6,324 5,826 5,973 9,414 2,083 4,052
INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173 71 72
DIVIDENDS - PREFERRED STOCK 505(A) 465 416 271(A) 361 308 283(A)
------- ------- ------- ------- ------- ------- -------
TOTAL FIXED CHARGES 6,554 6,936 6,404 6,415 9,948 2,462 4,407
INCOME:
NET INCOME(LOSS) 3,442(B) 1,919(C) 722 (914)(D) 318(E) 1,682 1,486(B)
INCOME TAXES 1,189 941 696 677 508 1,075 635
FIXED CHARGES (EXCLUDING
PREFERRED STOCK DIVIDENDS) 6,049 6,471 5,988 6,144 9,587 2,154 4,124
------- ------- ------- ------- ------- ------- -------
TOTAL INCOME 10,660 9,331 7,406 5,907 10,413 4,911 6,245
======= ======= ======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 1.63 1.35 1.16 0.92(F) 1.05 1.99 1.42
======= ======= ======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 14,902 16,121 16,327 17,089 23,798 6,517 9,111
INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173 71 72
DIVIDENDS - PREFERRED STOCK 505(A) 465 416 271(A) 361 308 283(A)
------- ------- ------- ------- ------- ------ ------
TOTAL FIXED CHARGES 15,550 16,733 16,905 17,531 24,332 6,896 9,466
INCOME:
NET INCOME(LOSS) 3,422(B) 1,919(C) 722 (914)(D) 318(E) 1,682 1,486(B)
INCOME TAXES 1,189 941 696 677 508 1,075 635
FIXED CHARGES (EXCLUDING
PREFERRED STOCK DIVIDENDS) 15,045 16,268 16,489 17,260 23,971 6,588 9,183
------- ------- ------- ------- ------- ------- ------
TOTAL INCOME 19,656 19,128 17,907 17,023 24,797 9,345 11,304
======= ======= ======= ======= ======= ======= ======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.26 1.14 1.06 0.97(F) 1.02 1.36 1.19
======= ======= ======= ======= ====== ======= ======
(A) CALCULATED ON AN ASSUMED TAX RATE OF 37% FOR THE SIX MONTHS ENDED JUNE 30,
1994, 29% AND 34% FOR THE FULL YEAR OF 1994 AND 1991, RESPECTIVELY.
(B) NET INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1994 AND THE FULL YEAR
1994 EXCLUDES THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF FINANCIAL
ACCOUNTING STANDARDS NO. 112, "EMPLOYERS' ACCOUNTING FOR POSTEMPLOYMENT
BENEFITS", OF $(56) MILLION.
(C) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1993 EXCLUDES THE
CUMULATIVE EFFECT OF ADOPTING STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO.
109, "ACCOUNTING FOR INCOME TAXES", OF $300 MILLION.
(D) NET LOSS FOR THE YEAR ENDED DECEMBER 31, 1991 EXCLUDES THE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE FOR VENTURE CAPITAL INVESTMENTS OF $457 MILLION.
(E) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1990 EXCLUDES THE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE FOR CERTAIN DERIVATIVE PRODUCTS OF $140 MILLION.
(F) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER FIXED
CHARGES OF $508 MILLION.
</TABLE>
