<PAGE>
FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
( X ) Annual Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the fiscal year ended: December 31, 1994
OR
( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from : to
Commission file number: 1-8133
XEROX CREDIT CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 06-1024525
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
100 First Stamford Place, Stamford, Connecticut 06904
(Address of principal executive offices) (Zip Code)
(203) 325-6600
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Name of Each Exchange on Which Registered
10% Notes due 1999 New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
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:
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of regulation S-K is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. Not Applicable
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the latest practicable date.
Class Outstanding as of February 28, 1995
Common Stock 2,000
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS J(1)(a)
AND (b) OF FORM 10-K AND IS THEREFORE FILING THIS FORM WITH THE REDUCED
DISCLOSURE FORMAT.
THIS DOCUMENT CONSISTS OF 37 PAGES
(1)
<PAGE>
PART I
ITEM 1. Business
Xerox Credit Corporation, a Delaware corporation (together with its
subsidiaries herein called "the Company" unless the context otherwise
requires), was organized on June 23, 1980. All of the Company's outstanding
capital stock is owned by Xerox Financial Services, Inc. (XFSI), a holding
company, which is wholly-owned by Xerox Corporation (Xerox Corporation
together with its subsidiaries are herein called "Xerox" unless the context
otherwise requires).
The Company is engaged in financing long-term accounts receivable
arising out of equipment sales by Xerox to its Document Processing customers
throughout the United States. Contract terms on these accounts receivable
range primarily from two to five years.
The Company discontinued its real-estate development and related real-
estate financing businesses in the first quarter of 1990. In the fourth
quarter of 1990, the Company discontinued its third-party financing and
leasing businesses. See Note 2 to the Consolidated Financial Statements
for further information regarding the Company's discontinued operations.
Xerox is a global company serving the worldwide Document Processing
markets. Xerox' Document Processing activities encompass developing,
manufacturing, marketing, servicing and financing a complete range
of document processing products and services designed to make offices
around the world more productive. These products and systems are
marketed in over 130 countries by a direct sales force and a network of
agents, dealers, distributors and value-added resellers, as well as through
U.S. retail marketing channels. The financing of Xerox equipment is
generally carried out by the Company in the United States and internationally
by several foreign financing subsidiaries.
(2)
<PAGE>
ITEM 2. Properties
The Company does not directly own any facilities in order to carry on
its principal business. Its principal executive offices in Stamford,
Connecticut comprise approximately 25,000 square feet of office space.
In addition, the Company leases approximately 1,200 square feet of office
space at various domestic and international locations, the majority of
which are used by the Company's discontinued operations. These facilities
are deemed adequate by management.
ITEM 3. Legal Proceedings
None.
ITEM 4. Submission of Matters to a Vote of Security Holders
Not Required.
PART II
ITEM 5. Market for the Registrant's Common Equity and Related Stockholder
Matters
This item is inapplicable to Registrant, which is a wholly-owned
subsidiary of Xerox.
ITEM 6. Selected Financial Data
Not Required.
(3)
<PAGE>
ITEM 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations
Continuing Operations
Contracts receivable income represents income earned under an agreement
with Xerox pursuant to which the Company purchases long-term accounts
receivable associated with Xerox' sold equipment. These receivables arise
from Xerox equipment being sold under installment sales and sales-type leases.
In 1994, the Company purchased receivables from Xerox totaling $1,916 million
compared to $1,848 million in 1993. Earned income from contracts receivable
decreased in 1994 to $362 million from $376 million in 1993. The 1994
decrease is due to lower interest earned on Xerox' contracts receivable which
reflects the fact that a significant number of those contracts were activated
in 1993 and 1992 when market interest rates were at a ten year low. Earned
income from contracts receivable decreased in 1993 to $376 million from $389
million in 1992. The decrease in earned income was the result of lower
purchases of contracts receivable in 1993 compared to 1992, due to weak United
States sales early in 1993 because of the reorganization of the Xerox United
States Customer Operations sales force, as well as lower interest income
earned on Xerox contracts receivable resulting from declining interest rates.
Interest expense was $202 million in 1994 compared to $209 million in
1993, a decrease of $7 million. The 1994 decrease resulted from lower
overall interest rates partially offset by increased borrowings required
to fund the Company's additional investment in contracts receivable. The $209
million of interest expense in 1993 was a decrease of $3 million from the 1992
interest expense of $212 million. The 1993 decrease reflected lower interest
rates partially offset by increased borrowings required to fund the
Company's additional investment in contracts receivable. The Company intends
to continue to match its contracts receivable and indebtedness to maintain the
relationship between interest income and interest expense.
Operating and administrative expenses were $13 million for 1994, the
same amount as in 1993. Operating and administrative expenses
decreased to $13 million in 1993 compared to $19 million in 1992. This
decrease was due primarily to operating efficiencies associated with the
administration of contracts receivable purchased from Xerox.
The effective income tax rate for 1994 was 40.8 percent as compared
with 40.9 percent for 1993 and 39.9 percent for 1992, respectively. The
increase in the effective tax rates in 1993 compared to 1992 was due primarily
to the 1993 increase in the corporate federal income tax rates from 34 percent
to 35 percent retroactive to January 1, 1993.
(4)
<PAGE>
Discontinued Operations
Since their discontinuance in 1990, the Company has made substantial
progress in disengaging from the real-estate and third-party financing
businesses. During the three years ended December 31, 1994, the Company
received net cash proceeds of $841 million from the sale of discontinued
business units and assets, from several asset securitizations and from run-off
collection activities. The amounts received were consistent with the
Company's estimates in the disposal plan and were primarily used to reduce the
Company's short-term indebtedness. At December 31, 1994, the Company remains
contingently liable for approximately $50 million under recourse provisions
associated with the securitization transactions.
Since a portion of the remaining assets ($62 million) represents
passive lease receivables, many with long-duration contractual maturities and
unique tax attributes, the Company expects that the wind-down of the portfolio
will be significantly slower in 1995 and future years, compared with
prior years. The Company believes that the liquidation of
the remaining assets will not result in a net loss.
In January 1995, Xerox signed a definitive agreement for the sale of
Xerox Financial Services Life Insurance Company(XFSLIC), a subsidiary of the
Company's parent, Xerox Financial Service, Inc. The Company's $74 million
investment in XFSLIC, representing a 26% interest, is reported as a component
of net assets of discontinued operations on the consolidated balance sheet.
Closing of the sale is expected in the first half of 1995. The Company
anticipates that the ultimate disposition of this investment will not result
in a net loss.
Additional information regarding discontinued operations is included in
Note 2 to the Consolidated Financial Statements.
(5)
<PAGE>
Capital Resources and Liquidity
The Company's principal sources of funds are cash from the collection
of Xerox contracts receivable and borrowings.
At December 31, 1994, the Company and Xerox have joint access to three
revolving credit agreements totaling $5 billion with various banks, which
expire from 1995 to 1999. The interest on amounts borrowed under these
facilities is at rates based, at the borrower's option, on spreads above
certain reference rates such as LIBOR and Federal funds rates.
Net cash provided by operating activities was $20 million in 1994
compared with $48 million of cash used in 1993. The 1994 decrease in cash
used by operating activities is mainly attributable to the comparatively
smaller reduction in the deferred income taxes payable balance offset by
greater reduction in accounts payable and accrued liabilities due to timing of
payments. Net cash used in operating activities was $48 million in 1993
compared with $23 million in 1992. The 1993 increase in cash used by
operating activities was mainly attributable to the reduction in accounts
payable and accrued liabilities due to timing of payments.
Net cash provided by investing activities was $47 million in 1994
compared to $21 million provided in 1993. The increase in cash provided by
investing activities was the result of higher net collections from the
Company's investment in contracts receivable in 1994,which was partially
offset by lower net collections from discontinued operations. Net cash
provided by investing activities was $21 million in 1993 compared to $58
million of cash used in investing activities in 1992. The increase in cash
provided by investing activities was the result of higher net
collections from the Company's investment in contracts receivable in 1993,
which was partially offset by lower net collections from discontinued
operations.
Net cash used in financing activities was $68 million in 1994
compared to $26 million provided in 1993. The increase in cash used was
the result of less net borrowing and payment of higher dividends in 1994. Net
cash provided by financing activities was $26 million in 1993 compared to $79
million in 1992. The decrease in cash provided was the result of increased
principal payments on the Company's long-term debt.
(6)
<PAGE>
The Company believes that cash provided by continuing operations, cash
available under its commercial paper program supported by its credit
facilities, and its readily available access to the capital markets are more
than sufficient for its funding needs. During 1995, new borrowing associated
with the financing of customer purchases of Xerox equipment will continue.
The timing, principal amount and form of new short- and long-term financing
will be determined based upon the Company's need for financing and prevailing
debt market conditions.
The Company intends to continue to match fund interest income from its
contracts receivable with interest obligations on its indebtedness. To
lock-in interest spreads on new business and reduce interest cost, the
Company has entered into a number of interest rate swap agreements. In
general, the Company's objective is to hedge its variable-rate debt by paying
fixed rates under the swap agreements while receiving variable-rate based
payments in return. The Company has also entered into swap agreements
that convert both fixed-and non-commercial paper based variable-rate interest
payments into payments that are indexed to commercial paper rates.
During 1994, the Company entered into interest rate swap
agreements, which effectively converted $430 million of variable-rate
debt into fixed-rate debt. These agreements mature at various dates
through 1997 and resulted in a weighted average fixed-rate of 6.71 percent
at December 31,1994. The Company also entered into interest rate
swap agreements during 1994 which effectively converted $275 million of
variable-rate debt into variable-rate debt that is indexed to the commercial
paper rates. These agreements mature at various dates through 1997.
As of December 31, 1994, the Company's overall debt-to-equity ratio
was 6.5 to 1. The Company declared aggregate dividends of $88 million, $59
million and $60 million during 1994, 1993 and 1992, respectively. The
Company currently intends to maintain a debt-to-equity ratio of approximately
6.5 to 1.
Pursuant to a Support Agreement between the Company and Xerox,
Xerox has agreed to retain ownership of 100 percent of the voting capital
stock of the Company and to make periodic payments to the extent necessary
to ensure that the Company's annual pre-tax earnings available for
fixed charges equal at least 1.25 times the Company's fixed charges.
(7)
<PAGE>
ITEM 8. Financial Statements and Supplementary Data
The financial statements of the Company and its consolidated
subsidiaries and the notes thereto, the financial statement schedules, and
the report thereon of KPMG Peat Marwick LLP, independent auditors, are set
forth on pages 10 through 28 hereof.
The other financial statements and schedules required herein are filed
as "Financial Statement Schedules" pursuant to Item 14 of this report on Form
10-K.
ITEM 9. Disagreements on Accounting and Financial Disclosure
Not Applicable.
ITEM 10. Directors and Executive Officers of the Registrant
Not Required.
ITEM 11. Executive Compensation
Not Required.
ITEM 12. Security Ownership of Certain Beneficial Owners and Management
Not Required.
ITEM 13. Certain Relationships and Related Transactions
Not Required.
PART IV
ITEM 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
(a) (1) and (2) The financial statements and the financial statement
schedules and the report of independent auditors thereon filed
herewith are listed or otherwise included in the attachment
hereto.
(3) The exhibits filed herewith are set forth on the Exhibit
Index included herein.
(b) No Current Reports on Form 8-K were filed during the last quarter
of the period covered by this Report.
(8)
<PAGE>
SIGNATURE
Pursuant to the requirements of Section 13 or 15 (d) 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.
XEROX CREDIT CORPORATION
BY_______________________________
(NAME AND TITLE) Donald R. Altieri, Vice President, Treasurer
and Chief Financial Officer
March 30, 1995
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the date indicated.
Signature Title
Principal Executive Officer:
Stuart B. Ross ______________________________
Chairman, President and Chief
Executive Officer and Director
Principal Financial Officer:
Donald R. Altieri ______________________________
Vice President, Treasurer
and Chief Financial Officer and Director
Principal Accounting Officer:
Tanvir Hyder, _____________________________
Controller
Directors:
David R. McLellan* Director
Eunice M. Filter* Director
*By_____________________
Donald R. Altieri
Attorney-in-Fact
(DATE) March 30, 1995
(9)
<PAGE>
SIGNATURE
Report of Independent Auditors
The Board of Directors
Xerox Credit Corporation:
We have audited the consolidated financial statements of Xerox Credit
Corporation and subsidiaries as listed in the accompanying index. In
connection with our audits of the consolidated financial statements, we also
have audited the financial statement schedule as listed in the accompanying
index. These consolidated financial statements and financial statement
schedule are the responsibility of the Company's management. Our
responsibility is to express an opinion on these consolidated financial
statements and financial statement schedule based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial
statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
consolidated financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Xerox
Credit Corporation and subsidiaries at December 31, 1994 and 1993, and the
results of their operations and their cash flows for each of the years in the
three-year period ended December 31, 1994, in conformity with generally
accepted accounting principles. Also in our opinion, the related financial
statement schedule, when considered in relation to the basic consolidated
financial statements taken as a whole, presents fairly, in all material
respects, the information set forth therein.
As discussed in Note 1 to the consolidated financial statements, the
Company changed its method of accounting for income taxes and its method of
accounting for postretirement benefits other than pensions in 1992.
KPMG PEAT MARWICK LLP
Stamford, Connecticut
January 19, 1995
(10)
<PAGE>
XEROX CREDIT CORPORATION
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
Financial Statements:
Consolidated statements of income for each of the years in the three-year
period ended December 31, 1994
Consolidated balance sheets at December 31, 1994 and 1993
Consolidated statements of shareholder's equity for each of the years in the
three-year period ended December 31, 1994
Consolidated statements of cash flows for each of the years in the three-year
period ended December 31, 1994
Notes to consolidated financial statements
Schedules:
II Valuation and qualifying accounts
All other schedules are omitted as they are not applicable or the information
required is included in the consolidated financial statements or notes
thereto.
(11)
<PAGE>
XEROX CREDIT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31, 1994, 1993 and 1992
(In Millions)
1994 1993 1992
Earned Income:
Contracts receivable $ 362 $ 376 $ 389
Expenses:
Interest 202 209 212
Operating and administrative 13 13 19
Total expenses 215 222 231
Income before income taxes 147 154 158
Provision for income taxes 60 63 63
Net income $ 87 $ 91 $ 95
See notes to consolidated financial statements.
(12)
<PAGE>
XEROX CREDIT CORPORATION
CONSOLIDATED BALANCE SHEETS
December 31, 1994 and 1993
(In Millions)
ASSETS
1994 1993
Cash and cash equivalents $ - $ 1
Investments:
Contracts receivable 4,203 4,148
Notes receivable - Xerox and affiliates 59 58
Unearned income (434) (437)
Allowance for losses (129) (153)
Total investments 3,699 3,616
Net assets of discontinued operations 289 431
Other assets 2 2
Total assets $3,990 $4,050
LIABILITIES, DEFERRED INCOME TAXES AND SHAREHOLDER'S EQUITY
Liabilities:
Notes payable within one year:
Commercial paper $1,657 $1,653
Current portion of notes payable after one year 403 554
Notes payable after one year 1,246 1,079
Notes payable after one year-Xerox and affiliates 75 75
Due to Xerox Corporation, net 39 54
Accounts payable and accrued liabilities 56 91
Total liabilities 3,476 3,506
Deferred income taxes 9 38
Shareholder's Equity:
Common stock, no par value, 2,000 shares
authorized, issued, and outstanding 23 23
Additional paid-in capital 145 145
Retained earnings 336 337
Cumulative translation adjustment 1 1
Total shareholder's equity 505 506
Total liabilities, deferred income taxes
and shareholder's equity $3,990 $4,050
See notes to consolidated financial statements.
(13)
<PAGE>
XEROX CREDIT CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY
Years Ended December 31, 1994, 1993 and 1992
(In Millions)
Additional Cumulative
Common Paid-In Retained Translation
Stock Capital Earnings Adjustment Total
Balance at December 31, 1991 $ 23 $ 145 $ 295 $ 1 $ 464
Net Income 95 95
Dividends* (85) (85)
Balance at December 31, 1992 23 145 305 1 474
Net Income 91 91
Dividends (59) (59)
Balance at December 31, 1993 23 145 337 1 506
Net Income 87 87
Dividends (88) (88)
Balance at December 31, 1994 $ 23 $ 145 $ 336 $ 1 $ 505
* Includes a non-cash dividend of $25 million.
See notes to consolidated financial statements.
(14)
<PAGE>
XEROX CREDIT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31, 1994, 1993 and 1992
(In Millions)
1994 1993 1992
Cash Flows from Operating Activities
Net income $ 87 $ 91 $ 95
Adjustments to reconcile net income to
net cash provided by (used in) operating activities:
Amortization of discount on long-term debt - - 2
(Decrease) in deferred income taxes (29) (136) (149)
(Decrease)increase in operating assets
and liabilities, net (38) (3) 29
Net cash provided by (used in) operating activities 20 (48) (23)
Cash Flows from Investing Activities
Purchases of investments (1,916) (1,848) (1,964)
Proceeds from investments 1,834 1,637 1,426
Net collections from
discontinued operations 129 232 480
Net cash provided by (used in) investing activities 47 21 (58)
Cash Flows from Financing Activities
Increase in short-term debt, net 4 305 382
Proceeds from long-term debt 567 475 406
Principal payments of long-term debt (551) (695) (649)
Dividends (88) (59) (60)
Net cash (used in) provided by financing activities (68) 26 79
Decrease in cash and cash equivalents (1) (1) (2)
Cash and cash equivalents, beginning of year 1 2 4
Cash and cash equivalents, end of year $ - $ 1 $ 2
See notes to consolidated financial statements.
(15)
<PAGE>
XEROX CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements include the accounts of Xerox
Credit Corporation (the Company) and its subsidiaries. The Company is a
wholly-owned subsidiary of Xerox Financial Services, Inc. (XFSI), which is in
turn wholly-owned by Xerox Corporation (Xerox). All significant transactions
between the Company and its subsidiaries have been eliminated.
Recognition of Earned Income
The Company utilizes the interest method for the recognition of
earned income associated with contracts receivable. Under this method, the
difference between the amount of gross contract receivable and the cost of
the contract is recorded as unearned income. The unearned income is
amortized to income over the term of the transaction under an effective yield
method.
Cash and Cash Equivalents
All highly liquid investments of the Company, with a maturity of three
months or less at date of purchase, are considered to be cash equivalents.
Allowance for Losses
In connection with the contracts receivable purchased from Xerox, the
Company retains an allowance for losses at the time of purchase which is
intended to protect against future losses. Should any additional allowances
be required, Xerox is required to provide such funding. The resultant effect
is to relieve the Company of any exposure with regard to write-offs
associated with the contracts receivable purchased from Xerox.
(16)
<PAGE>
XEROX CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Charge Off of Delinquent Receivables
The Company's policy with respect to the charge-off of delinquent
receivables is that receivables are charged off as soon as it becomes
apparent that the collection of the receivables through normal means is
unlikely. The policy contemplates that delinquent receivables
will be charged off before the aging of such delinquent receivables
reaches 180 days.
New Accounting Pronouncements
Effective January 1, 1992, the Company adopted Statement of Financial
Accounting Standard (SFAS) No. 109- "Accounting for Income Taxes." The
effect of adopting SFAS No. 109 had no impact on shareholder's
equity and income from continuing operations in 1992. A tax benefit of $87
million was recorded to discontinued operations and represented the
cumulative tax benefits associated with the discontinued real-estate
operations that were not previously recorded.
Also, effective January 1, 1992, the Company adopted SFAS No. 106-
"Employees' Accounting for Postretirement Benefits other than Pensions," which
changes the method of recording other postretirement benefit costs from a cash
basis to the accrual basis. The cumulative effect of adopting SFAS No. 106 on
the Company was immaterial.
Commencing in 1994, SFAS No. 112- "Employers' Accounting for
Postemployment Benefits" requires accrual accounting for employee benefits
that are paid after the termination of active employment but prior to
retirement. SFAS No.112 did not have an impact on operating results of the
Company as the applicable benefits are either routinely accrued or are types
of benefits not currently offered by the Company.
Effective December 31, 1994, the Company adopted SFAS No. 119-
"Disclosure about Derivative Financial Instruments and Fair Value of Financial
Instruments". The typical transactions with off-balance sheet risk which the
Company enters into are interest rate swap agreements. See Note 4 on Page 21
for disclosure relating to these derivative financial instruments.
(17)
<PAGE>
XEROX CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(2) Discontinued Operations
The Company has made substantial progress in disengaging from the
real-estate and third-party financing businesses that were discontinued in
1990. During the three years ended December 31, 1994, the Company
received aggregate net cash proceeds of $841 million ($129 million in 1994,
$232 million in 1993 and $480 million in 1992) from the sale of individual
assets, from several asset securitizations and from run-off collection
activities. The amounts received were consistent with the Company's estimates
in the disposal plan and were used primarily to repay short-term indebtedness.
At December 31, 1994, the Company remains contingently liable for $50 million
under recourse provisions associated with the securitization transactions.
During 1992, incremental tax benefits of $122 million were realized by
the Company related to the write-off of its real estate businesses in 1990.
Rather than recording these tax benefits in net income, the Company increased
before-tax reserves related to the discontinued businesses. Management
believed this prudent in view of weak market conditions and continuing
uncertainties in the domestic real-estate and credit markets.
Approximately $62 million (21 percent) of the remaining assets
represent passive lease receivables, many with long-duration contractual
maturities and unique tax attributes. Accordingly, the Company expects that
the wind-down of the portfolio will be slower during 1995 and in future years,
compared with prior years. The Company believes that the liquidation of the
remaining assets will not result in a net loss.
Short-and long-term debt represents debt included in the Company's
consolidated balance sheets that has been assigned to the discontinued
businesses in accordance with historical methodologies. Interest expense
assigned to discontinued businesses for 1994 and 1993 was $10 million and $14
million, respectively. Proceeds from disposition of these businesses, along
with their results of operations during the phase-out period, are expected to
be used to repay such consolidated indebtedness.
(18)
<PAGE>
XEROX CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Summarized information of discontinued operations for the three
years ended December 31, 1994 follows:
(In millions)
1994 1993 1992
Summary of Operations
Loss before income taxes $ - $ - $ (122)
Income tax benefit - - 122 *
Net income (loss) from
discontinued operations $ - $ - $ -
Balance Sheet Data
Gross finance receivables $ 109 $ 202 $ 515
Unearned income (31) (53) (87)
Other assets 211** 282** 222
Investment in discontinued operations, net $ 289 $ 431 $ 650
Assigned short- and long-term debt $ 154 $ 244 $ 400
* Includes $87 million resulting from the cumulative effect of adopting
statement of Financial Accounting Standards No. 109- "Accounting for Income
Taxes," effective January 1, 1992.
** Includes a $74 million investment in Xerox Financial Services Life
Insurance Company, a subsidiary of the Company's parent, Xerox Financial
Services, Inc.
Contractual maturities of the gross finance receivables at December 31,
1994 follow (in millions): 1995-$20; 1996-$9; 1997-$16; 1998-$2;
1999; $1; 2000 and thereafter-$61.
(19)
<PAGE>
XEROX CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(3) Investments
Contracts receivable represent purchases of long-term trade accounts
receivable from Xerox. These receivables arise from Xerox equipment being
sold under installment sales and sales-type leases. Contract terms on
these receivables range primarily from two to five years and are generally
collateralized by a security interest in the underlying assets. The Company
purchased receivables from Xerox totaling $1,916 million in 1994, $1,848
million in 1993, and $1,964 million in 1992. The Company was charged $11
million in 1994 and 1993, and $10 million in 1992 by Xerox for administrative
costs associated with the contracts receivable purchased from Xerox.
Under SFAS No. 107- "Disclosures about Fair Values of Financial
Instruments," the Company is not required to determine the fair value of
these receivables. Management believes that any revaluation of the
contracts receivable would result in a fair value in excess
of the carrying value of these receivables.
The scheduled maturities of contracts receivable at December 31,
1994 are as follows (in millions): 1995-$1,702; 1996-$1,206; 1997-$785;
1998-$368; 1999-$133; 2000 and thereafter- $9. Experience has shown that a
portion of these contracts receivable will be prepaid prior to maturity.
Accordingly, the preceding schedule of contractual maturities should not
be considered a forecast of future cash collections.
Included in the $59 million notes receivable balance from Xerox and
affiliates are receivables from related parties payable on demand at various
interest rates. $50 million of these amounts is a floating rate note from
XFSI.
(20)
<PAGE>
XEROX CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(4) Lines of Credit and Interest Rate Swaps
At December 31, 1994, the Company and Xerox had joint access to three
revolving credit agreements totaling $5.0 billion with various banks, which
expire from 1995 to 1999. These agreements are unused and are available to
back the issuance of commercial paper. At December 31, 1994, the Company had
a total of $1.7 billion of commercial paper outstanding. The average interest
rate paid on commercial paper issued in 1994 was 4.4 percent.
The Company routinely enters into interest rate swap agreements
in the management of interest rate exposure. An interest rate swap is an
agreement to exchange interest rate payment streams based on a notional
principal amount. In general, the Company's objective is to hedge its
variable-rate debt by paying fixed rates under the swap agreements and
receiving commercial paper-rate payments in return. These swap agreements
effectively convert an amount (equal to the notional amount) of underlying
variable-rate commercial paper into fixed-rate debt. The net interest rate
differentials that will be paid or received are recorded currently as
adjustments to interest expense. The counterparties to these swap agreements
are typically major commercial banks.
The Company does not enter into swap transactions for trading
or other speculative purposes. The Company's policies on the use of such
derivative instruments prescribe an investment grade counterparty credit floor
and at least quarterly monitoring of market risk on a counterparty-by-
counterparty basis. Based upon its ongoing evaluation of the replacement cost
of its derivatives transactions and counterparty creditworthiness, the Company
considers the risk of credit default significantly affecting its financial
position or results of operations to be remote. The Company's interest rate
hedging activities are largely unaffected by changes in market
conditions as swaps are typically held to maturity in order to lock in
interest spreads on underlying transactions.
The aggregate amounts of interest rate swaps outstanding at December 31, 1994
and 1993 are as follows:
(Dollars in millions)
1994 1993
Pay fixed/receive variable $1,555 $2,050
Pay variable/receive variable 425 375
Pay variable/receive fixed 0 0
$1,980 $2,425
Average interest payment rates 5.54% 5.39%
At December 31, 1994 and 1993, the Company's swap agreements had an
aggregate net fair value of $45 million and $(35) million, respectively, based
on quotes from banks. These values represents the estimated net amounts the
Company would have received and paid had the agreements been terminated as of
December 31, 1994 and 1993, respectively. The Company has no present plans to
terminate any of these agreements prior to their scheduled maturities.
(21)
<PAGE>
XEROX CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(5) Notes Payable After One Year
A summary of notes payable at December 31, 1994 and 1993 follows:
(In Millions)
1994 1993
9.50% Notes due 1994 $ - $ 100
9.76% Notes due 1994 - 14
4.119% Notes due 1994 - 50
Floating Rate Notes due 1994 (a) - 275
5.375% Notes due 1995 150 150
Floating Rate Notes due 1995 (a) 100 100
8.75% Notes due 1995 150 150
6.25% Notes due 1996 200 200
Medium Term Notes due 1996 (e) 100 -
Floating Rate Notes due 1996 (a) 220 50
4.80% Notes due 1997 50 50
Medium Term Notes due 1997 (e) 147 -
Floating Rate Notes due 1997 (a) 150 -
8.00% Notes due 1999 (b) - 100
10.00% Notes due 1999 150 150
10.125% Notes due 1999 (c) 150 150
Floating Rate Notes due 2048 (d) 61 61
Other Notes due 1995 - 1997 21 34
Subtotal $ 1,649 $ 1,634
Less unamortized discount - (1)
Less current portion of notes payable
after one year (403) (554)
Total Notes Payable After one Year $ 1,246 $ 1,079
(a) The notes carry interest rates which are based primarily on spreads
above certain reference rates such as U.S. Treasury Bill, LIBOR and
Federal funds rates.
(b) The Company exercised its option to redeem these notes on March 1, 1994.
(c) The notes are redeemable on or after April 15, 1996, at the option of
the Company, at their principal amount plus accrued interest.
(22)
<PAGE>
XEROX CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(d) The notes mature August 15, 2048 and are repayable at the option of
the noteholders beginning August 15, 1993 and annually thereafter.
The outstanding notes are classified as notes payable after one
year, since the Company has the ability to refinance them on
a long-term basis, if required. The interest rate is indexed to
rates on commercial paper placed for issuers whose commercial paper
rating is "AA" or the equivalent as reported in Federal Reserve
Statistical Release H.15 (519), which at year-end was 6.03 percent.
(e) The 1996 and 1997 medium term notes carry average interest rates of
5.24% and 5.99%, respectively.
Principal payments on notes payable for the next five years are:
$403 million in 1995; $684 million in 1996; $351 million in 1997;
$0 million in 1998; $150 million in 1999; and $61 million thereafter.
Certain of the Company's debt agreements allow it to redeem outstanding
debt, usually at par, prior to scheduled maturity. Outstanding debt issues
with these call features are classified on the balance sheet and in the
preceding five-year maturity table in accordance with management's current
expectations. The actual decision as to early redemption will be made at
the time the early redemption option becomes exercisable and will be based
on economic and business conditions then in existence.
Interest payments on notes payable for 1994, 1993 and 1992 were
$137 million, $148 million, and $166 million, respectively. Interest payments
on commercial paper for 1994, 1993 and 1992 were $66 million, $48 million
and $40 million, respectively. The weighted-average commercial paper interest
rates for 1994, 1993 and 1992 were 4.4 percent, 3.3 percent and 3.9 percent,
respectively.
At December 31, 1994 and 1993, carrying values of notes payable were
$1,649 million and $1,634 million, respectively, substantially all of
which are subject to the requirements of SFAS No. 107- "Disclosures about
Fair Values of Financial Instruments." The fair values of the Company's
notes payable at December 31, 1994 and 1993 were $1,640 million and $1,698
million,respectively, based on quoted market prices for the notes or
other issues with similar features and maturity dates. The difference between
the fair value and the carrying value represents the theoretical net amounts
the Company would have received or paid if it had retired all notes payable at
December 31, 1994 or 1993, respectively. The Company has no plans to retire
its notes payable prior to their call or final maturity dates.
The original issue discount and other expenses associated with the debt
offerings are amortized over the term of the related issue.
(23)
<PAGE>
XEROX CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(6) Income Taxes
Income taxes are provided at statutory rates based on income before
income taxes exclusive of the amortization of investment tax credits and
earnings not subject to Federal taxation. Substantially all of the Company's
operations are included in Xerox' consolidated income tax returns. In
connection with these consolidated returns, the Company paid Xerox $86
million, $136 million, and $15 million in 1994, 1993 and 1992, respectively.
The Company paid $10 million in 1994, and $1 million in both 1993 and 1992, to
taxing authorities for Company operations not included in Xerox' consolidated
tax returns.
(24)
<PAGE>
XEROX CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The components of income from continuing operations before taxes and
the provision for income taxes are as follows:
(In Millions)
1994 1993 1992
Income from continuing operations
before income taxes: $ 147 $ 154 $ 158
Federal income taxes
Current $ 47 $ 50 $ 52
Deferred - (1) (3)
State income taxes
Current 13 14 15
Deferred - - (1)
Total provision for income taxes $ 60 $ 63 $ 63
Deferred income taxes for 1993 and 1992 result from differences
between financial and tax reporting in the timing of the recognition of income
on securitized assets.
A reconciliation of the effective tax rate from the U.S. Federal
statutory tax rate follows:
1994 1993 1992
U.S. Federal statutory rate 35.0% 35.0% 34.0%
State income taxes, net of Federal
income tax benefit 5.8 5.9 5.9
Effective tax rate 40.8% 40.9% 39.9%
(25)
<PAGE>
XEROX CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The tax effects of temporary differences that give rise to significant
portions of deferred taxes at December 31, 1994 follows:
(In millions)
1994 1993
Tax effect of future tax deductions:
Discontinued real-estate
tax benefit $ 31 $ 42
Tax effect on future taxable income:
Discontinued leverage leases and other (39) (79)
Continuing operations- asset securitizations (1) (1)
Total deferred taxes, net $ (9) $ (38)
The 1994 reduction in deferred income taxes payable is the result of
sales of certain discontinued operations assets. The Company believes that it
is more likely than not that the deferred tax assets will be realized in the
ordinary course of operations based on scheduling of deferred tax liabilities
and income from operating activities.
(7) Xerox Corporation Support Agreement
The terms of a Support Agreement with Xerox provide that the Company
will receive income maintenance payments, to the extent necessary, so that
the Company's earnings shall not be less than 1.25 times its fixed charges.
For purposes of this calculation, both earnings and fixed charges are
as defined in Section 1404 (formerly Section 81(2)) of the New York Insurance
Law. In addition, the agreement requires that Xerox retain 100 percent
ownership of the Company's voting capital stock.
(26)
<PAGE>
XEROX CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(8) Quarterly Results of Operations (Unaudited)
A summary of interim financial information follows:
(In Millions)
First Second Third Fourth
Quarter Quarter Quarter Quarter Total
1994
Earned income $ 93 $ 89 $ 91 $ 89 $ 362
Interest expense 52 50 52 48 202
Operating and administrative
expenses 4 3 2 4 13
Income taxes 15 15 15 15 60
71 68 69 67 275
Net income $ 22 $ 21 $ 22 $ 22 $ 87
1993
Earned income $ 102 $ 93 $ 87 $ 94 $ 376
Interest expense 56 53 52 48 209
Operating and administrative
expenses 4 2 4 3 13
Income taxes 17 15 13 18 63
77 70 69 69 285
Net income $ 25 $ 23 $ 18 $ 25 $ 91
(27)
<PAGE>
SCHEDULE II
XEROX CREDIT CORPORATION
Valuation and Qualifying Accounts
Years Ended December 31, 1994, 1993 and 1992
(In Millions)
Additions
Balance Charged Retained Balance
at to at at
Beginning Costs Time End
of and of of
Period Expenses Purchase Deductions Period
(A) (B)
1994
Allowance for losses-
continuing operations $ 153 $ - $ 19 $ 43 $ 129
1993
Allowance for losses-
continuing operations $ 139 $ - $ 63 $ 49 $ 153
1992
Allowance for losses-
continuing operations $ 108 $ - $ 75 $ 44 $ 139
(A) In connection with the contracts receivable purchased from Xerox,
the Company retains an allowance for losses at the time of purchase
which is intended to protect against future losses. Should any
additional allowances be required, Xerox is required under the
Operating Agreement to provide such funding. For the period
covered by this Schedule, no additional funding was required or
provided.
(B) Amounts written-off, net of recoveries.
(28)
<PAGE>
XEROX CREDIT CORPORATION
Form 10-K
For the Year Ended December 31, 1994
Index of Exhibits
Document
(3) (a) Certificate of Incorporation of Registrant filed with the
Secretary of State of Delaware on June 23, 1980.
Incorporated by reference to Exhibit 3(a) to Registration
Statement No. 2-71503.
(b) By-Laws of Registrant, as amended through July 15, 1991.
Incorporated by reference to Exhibit 3(b) to Registrants Quarterly
Report on Form 10-Q for the quarter ended June 30, 1991.
(4) (a) Indenture dated as of February 1, 1987 between Registrant and
Continental Illinois National Bank and Trust Company of Chicago
relating to unlimited amounts of debt securities which may be
issued from time to time by Registrant when and as authorized by
Registrant's Board of Directors or the Executive Committee of
the Board of Directors.
Incorporated by reference to Exhibit 4(a) to Registration
Statement No. 33-12160.
(b) Indenture dated as of March 1, 1988 between Registrant and
The First National Bank of Chicago relating to unlimited amounts
of debt securities which may be issued from time to time by
Registrant when and as authorized by Registrant's Board of
Directors or the Executive Committee of the Board of Directors,
as supplemented by the First Supplemental Indenture dated as of
July 1, 1988.
Incorporated by reference to Exhibit 4(a) to Registration
Statement No. 33-20640 and to Exhibit 4(a)(2) to Registrant's
Current Report on Form 8-K dated July 13, 1988.
(29)
<PAGE>
XEROX CREDIT CORPORATION
Form 10-K
For the Year Ended December 31, 1994
Index of Exhibits
Document
(c) Indenture dated as of March 1, 1989 between Registrant and
Citibank, N.A. relating to unlimited amounts of debt securities
which may be issued from time to time by Registrant when and as
authorized by Registrant's Board of Directors or the
Executive Committee of the Board of Directors, as supplemented by
the First Supplemental Indenture dated as of October 1, 1989.
Incorporated by reference to Exhibit 4(a) to Registration
Statement No. 33-27525 and to Exhibit 4(a)(2) to Registration
Statement No. 33-31367.
(d) Indenture dated as of August 1, 1991, as supplemented by the First
Supplemental Indenture dated as of December 31, 1991, between
the Registrant and Bank of Montreal Trust Company relating to
unlimited amounts of debt securities which may be issued from time
to time by Registrant when and as authorized by the Registrant's
Board of Directors or the Executive Committee of the Board of
Directors.
Incorporated by reference to Exhibit 4(a) to Registration
Statement No. 33-39838.
(e) Indenture dated as of October 1, 1991 between Registrant and
Citibank, N.A. relating to unlimited amounts of debt securities
which may be issued from time to time by Registrant when and as
authorized by the Registrant's Board of Directors or the
Executive Committee of the Board of Directors, as supplemented
by the First Supplemental Indenture dated as of May 1, 1992.
Incorporated by reference to Exhibit 4(a)(1) and 4(a)(2) to
Registration Statement No. 33-43470.
(f) Indenture dated as of May 1, 1994, between Registrant and The First
National Bank of Boston relating to unlimited amounts of debt
securities which may be issued from time to time by Registrant when
and as authorized by Registrant's Board of Directors or Executive
Committee of the Board of Directors.
Incorporated by reference to Exhibit 4 (a) to Registrant's
Registration Statement No. 33-53533 and to Exhibits 4 (a)(1)
and 4 (a)(2) to Registrant's Registration Statement No. 33-43470.
(30)
<PAGE>
XEROX CREDIT CORPORATION
Form 10-K
For the Year Ended December 31, 1994
Index of Exhibits
Document
(g) Instruments with respect to long-term debt where the total amount
of securities authorized thereunder does not exceed ten percent
of the total assets of Registrant and its subsidiaries on a
consolidated basis have not been filed. Registrant agrees to
furnish the Commission a copy of each such instrument upon request.
(10) (a) Amended and Restated Operating Agreement originally made and
entered into as of November 1, 1980, amended and restated as of
December 31, 1992 between Registrant and Xerox Corporation
("Xerox").
Incorporated by reference to Exhibit 10(a) of Registrant's Annual
Report on Form 10-K for the year ended December 31, 1992.
(b) Support Agreement dated as of November 1, 1980 between
Registrant and Xerox.
Incorporated by reference to Exhibit 10(b) to Registration
Statement No. 2-71503.
(c) Tax Allocation Agreement dated as of January 1, 1981 between
Registrant and Xerox.
Incorporated by reference to Exhibit 10(c) to Registration
Statement No. 2-71503.
(12) (a) Computation of Registrant's Ratio of Earnings to Fixed Charges.
See Page 32 of this Report on Form 10-K.
(b) Computation of Xerox' Ratio of Earnings to Fixed Charges.
See Page 33 of this Report on Form 10-K.
(23) Consent of KPMG Peat Marwick LLP.
See Page 35 of this Report on Form 10-K.
(24) Power of Attorney.
See Page 36 of this Report on Form 10-K.
(27) Financial Data Schedule
See Page 37 of this Report on Form 10-K.
(31)
<PAGE>
Exhibit 12(a)
XEROX CREDIT CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Millions)
Year Ended December 31,
1994 1993 1992 1991 1990
Income before income taxes $ 147 $ 154 $ 158 $ 164 $ 182
Fixed charges:
Interest expense
Xerox debt 5 4 2 - 2
Other debt 197 205 210 200 205
Total fixed charges 202 209 212 200 207
Earnings available for
fixed charges $ 349 $ 363 $ 370 $ 364 $ 389
Ratio of earnings to
fixed charges (1) 1.73 1.74 1.75 1.82 1.88
(1) The ratio of earnings to fixed charges has been computed based on the
Company's continuing operations by dividing total earnings available
for fixed charges by total fixed charges. Interest expense has been
assigned to discontinued operations principally on the basis of
the relative amount of gross assets of the discontinued operations.
Management believes that this allocation method is reasonable in
light of the amount of debt specifically assigned to discontinued
operations. The discontinued operations consist of the Company's
real-estate development and related financing operations and its
third-party financing and leasing businesses.
(32)
<PAGE>
Exhibit 12(b)
XEROX CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Millions)
Year Ended December 31,
1994 1993(*) 1992(**) 1991(***) 1990
Fixed charges:
Interest expense $ 732 $ 755 $ 845 $ 818 $ 855
Rental expense 190 201 213 211 196
Total fixed charges
before capitalized
interest 922 956 1,058 1,029 1,051
Capitalized interest 2 5 17 3 -
Total fixed charges $ 924 $ 961 $ 1,075 $ 1,032 $ 1,051
Earnings available for fixed
charges:
Income before income
taxes $ 1,602 $ (227) $ 171 $ 963 $ 1,103
Less undistributed
income in minority
owned companies (54) (51) (52) (70) (60)
Add fixed charges before
capitalized interest 922 956 1,058 1,029 1,051
Total earnings available
for fixed charges $ 2,470 $ 678 $ 1,177 $ 1,922 $ 2,094
Ratio of earnings to
fixed charges (1)(2) 2.67 0.71 1.09 1.86 1.99
(1) The ratio of earnings to fixed charges has been computed based on
Xerox' continuing operations by dividing total earnings available for
fixed charges, excluding capitalized interest, by total fixed charges.
Fixed charges consist of interest, including capitalized interest, and
one-third of rent expense as representative of the interest portion of
rentals. Interest expense has been assigned to discontinued operations
principally on the basis of the relative amount of gross assets of the
discontinued operations. Xerox management believes that this allocation
method is reasonable in light of the debt specifically assigned to
discontinued operations. The discontinued operations consist of Xerox'
real-estate development and related financing operations, third-
party financing and leasing businesses, and other financial services
businesses.
(33)
<PAGE>
Exhibit 12(b)
(Cont'd)
(2) Xerox' ratio of earnings to fixed charges includes the effect of
the Xerox' finance subsidiaries which primarily finance Xerox equipment.
Financing businesses, due to their nature, traditionally operate at lower
earnings to fixed charges ratio levels than do non-financial companies.
(*) In 1993, the ratio of earnings to fixed charges includes the effect of
the $1,373 million before-tax ($813 million after-tax) charge incurred
in connection with the restructuring provision and litigation
settlements. Excluding this charge, the ratio was 2.13. 1993 Earnings
were inadequate to cover fixed charges. The coverage deficiency was $283
million.
(**) In 1992, the ratio of earnings to fixed charges includes the effect of
the $936 million before-tax ($778 million after-tax) charges incurred in
connection with the decision to disengage from the Company's IOFS
businesses. Excluding this charge, the ratio was 1.96.
(***)In 1991, the ratio of earnings to fixed charges includes the effect of
the $175 million before-tax charge incurred in connection with the
Document Processing work-force reduction announced in December 1991.
Excluding this charge, the ratio was 2.03.
(34)
<PAGE>
SIGNATURE
Exhibit 23
CONSENT OF INDEPENDENT AUDITORS
The Board of Directors
Xerox Credit Corporation
We consent to incorporation by reference in the Registration Statements
(No. 33-31366, No. 33-39838, and No. 33-53533) on Form S-3
of Xerox Credit Corporation of our report dated January 19, 1995, relating to
the consolidated balance sheets of Xerox Credit Corporation and consolidated
subsidiaries as of December 31, 1994 and 1993 and the related consolidated
statements of income, shareholder's equity and cash flows and related
financial statement schedule for each of the years in the three-year period
ended December 31, 1994 which report appears in the December 31, 1994 Annual
Report on Form 10-K of Xerox Credit Corporation. Our report refers to the
Company's change in its method of accounting for income taxes and its method
of accounting for postretirement benefits other than pensions in 1992.
KPMG PEAT MARWICK LLP
Stamford, Connecticut
March 30, 1995
(35)
<PAGE>
Exhibit 24
POWER OF ATTORNEY
Xerox Credit Corporation and each person whose signature appears below
hereby authorize each of Stuart B. Ross, Donald R. Altieri and Martin
S. Wagner, with full power to act alone, to file, either in paper or
electronic form, a Report on Form 10-K, and amendments thereto, under the
Securities Exchange Act of 1934, as amended, for the fiscal year ended
December 31, 1994, which Report and amendments shall contain such information
and exhibits as either Stuart B. Ross, Donald R. Altieri or Martin S.
Wagner deems appropriate. Each person hereby appoints each of Stuart B. Ross,
Donald R. Altieri and Martin S. Wagner as attorneys-in-fact, with full
powers to act alone, to execute such Report and any and all amendments
thereto in the name and on behalf of Xerox Credit Corporation and each
such person, individually and in each capacity stated below (including
the power to enter electronically such company identification numbers,
passwords and personal identification numbers and passwords as may be required
to effect such filing as prescribed under the rules and regulations of the
Securities and Exchange Commission ("Commission"), and to file, either in
paper or electronic form, with the Commission a form of this Power of
Attorney, hereby granting said attorneys, and each of them, full power and
authority to do and perform each and every act and thing whatsoever that said
attorney or attorneys may deem necessary or advisable to carry out fully the
intent of the foregoing as the undersigned might or could do personally or in
the capacities as aforesaid.
XEROX CREDIT CORPORATION
By
Stuart B. Ross, Chairman, President
and Chief Executive Officer
March 30, 1995
(Signature) (Title)
Stuart B. Ross Chairman, President and Chief Executive
Officer and Director
(Principal Executive Officer)
Donald R. Altieri Vice President, Treasurer and Chief
Financial Officer and Director
(Principal Financial Officer)
Tanvir Hyder Controller
(Principal Accounting Officer)
Eunice M. Filter Director
David R. McLellan Director
(36)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
XEROX CREDIT CORPORATION'S DECEMBER 31, 1994, FINANCIAL STATEMENTS AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> DEC-31-1994
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 3828
<ALLOWANCES> 129
<INVENTORY> 0
<CURRENT-ASSETS> 3699
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 3990
<CURRENT-LIABILITIES> 2155
<BONDS> 1321
<COMMON> 23
0
0
<OTHER-SE> 482
<TOTAL-LIABILITY-AND-EQUITY> 3990
<SALES> 0
<TOTAL-REVENUES> 362
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 13
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 202
<INCOME-PRETAX> 147
<INCOME-TAX> 60
<INCOME-CONTINUING> 87
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 87
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
