<PAGE>
PAGE 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
[X] ANNUAL REPORT PURSUANT TO SECTION 30(a) OF THE INVESTMENT
COMPANY ACT OF 1940 AND SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1993
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from __________________ to ____________.
Commission file number 2-23772
IDS Certificate Company
(Exact name of registrant as specified in its charter)
Delaware 41-6009975
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
IDS Tower 10, Minneapolis, Minnesota 55440
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (612) 671-3131
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange on
Title of each class which registered
None None
Securities registered pursuant to Section 12(g) of the Act:
None
(Title of class)
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. [X]
Aggregate market value of the voting stock held by non-affiliates
of the registrant. None
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Indicate the number of shares outstanding of each of the
registrant's classes of common stock, as of the latest
practicable date.
150,000 Common shares
CERTAIN DOCUMENTS INCORPORATED BY REFERENCE.
None
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 permitted abbreviated narrative disclosure.
The Exhibit Index is located on sequential pages 16-18
<PAGE>
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PART I
Item 1. Business
IDS Certificate Company (IDSC) is incorporated under the
laws of Delaware. Its principal executive offices are located in
the IDS Tower, Minneapolis, Minnesota, and its telephone number
is (612) 671-3131. IDS Financial Corporation (IDS), a Delaware
corporation, IDS Tower 10, Minneapolis, Minnesota 55440-0010,
owns 100% of the outstanding voting securities of IDSC. IDS is a
wholly owned subsidiary of American Express Company (American
Express), a New York Corporation, with headquarters at American
Express Tower, World Financial Center, New York, New York.
IDSC is a face-amount certificate investment company
registered under the Investment Company Act of 1940 (1940 Act).
IDSC is in the business of issuing face-amount certificates.
Face-amount certificates issued by IDSC entitle the certificate
holder to receive, at maturity, a stated amount of money and
interest or credits declared from time to time by IDSC, in its
discretion.
IDSC is continuously engaged in new product development.
IDSC currently offers seven certificates to the public: "IDS
Future Value Certificate", "IDS Cash Reserve Certificate", "IDS
Flexible Savings Certificate" (formerly "IDS Variable Term
Certificate"), "IDS Installment Certificate", "IDS Stock Market
Certificate", "IDS Investors Certificate" and "IDS Special
Deposits". The IDS Special Deposits is only offered for sale in
London, England, and is not registered for sale in the United
States. All certificates are currently sold without a sales
charge. The IDS Installment Certificate, the IDS Flexible
Savings Certificate, the IDS Stock Market Certificate, the IDS
Investors Certificate and the IDS Special Deposits currently bear
surrender charges for premature surrenders. All of the above
described certificates, except the IDS Special Deposits, are
distributed pursuant to a Distribution Agreement with IDS
Financial Services Inc., an affiliate of IDSC. With respect to
the IDS Investors Certificate and the IDS Stock Market
Certificate, IDS Financial Services Inc., in turn, has a Selling
Agent Agreement with American Express Bank International, a
subsidiary of American Express, for selling the certificate. IDS
Financial Services Inc. also distributes the IDS Stock Market
Certificate. With respect to the IDS Special Deposits, IDSC has
a Marketing Agreement with American Express Bank Ltd., a
subsidiary of American Express, for marketing the certificate.
IDSC also offers one certificate in connection with certain
employee benefit plans available to eligible IDS employees,
financial planners and retirees. This certificate is called the
Series D-1 Investment Certificate.
Except for the IDS Investors Certificate and the IDS Special
Deposits, all of the certificates are available as qualified
investments for Individual Retirement Accounts (IRAs), or 401(k)
plans and other qualified retirement plans.
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PAGE 4
The specified maturities of the certificates range from four
to twenty years. Within that maturity period, most certificates
have terms ranging from three to thirty-six months. Interest
rates change and certificateholders can surrender their
certificates without penalty at term end.
The IDS Future Value Certificate is a single payment
certificate that guarantees interest in advance for a 4, 5, 6, 7,
8, 9 or 10-year maturity, at the buyer's option.
The IDS Cash Reserve Certificate is a single pay certificate
that permits additional investments and guarantees interest in
advance for a three-month term.
The IDS Flexible Savings Certificate is a single payment
certificate that permits a limited amount of additional payments
and guarantees interest in advance for a term of 6, 12, 18, 24,
30 or 36 months, at the buyer's option.
The IDS Installment Certificate is an installment payment
certificate that declares interest in advance for a three-month
period and offers bonuses in the third through sixth years for
regular investments.
The IDS Stock Market Certificate is a single payment
certificate that offers the certificate holder the opportunity to
have all or part of his interest tied to stock market performance,
as measured by a broad stock market index, with guaranteed return
of principal. The holder can also choose to earn a guaranteed
fixed rate of interest. In addition to being sold to IDS clients
pursuant to a Distribution Agreement with IDS Financial Services
Inc., this certificate is sold by American Express Bank
International (AEBI), under a Selling Agent Agreement with IDS
Financial Services Inc. to AEBI's clients who are neither citizens
nor residents of the United States.
The IDS Investors Certificate is a single payment
certificate that permits additional payments within 15 days of
term renewal. Interest rates are guaranteed in advance for a
term of 1, 2, 3, 6, 12, 24 or 36 months, at the buyer's option.
This certificate is currently sold by AEBI, through a Selling
Agent Agreement with IDS Financial Services Inc., only to AEBI's
clients who are neither citizens nor residents of the United
States.
The IDS Special Deposits is a single payment certificate
that permits additional payments within 15 days of term renewal.
Interest rates are guaranteed in advance for a term of 1, 2, 3,
6, 12, 24 or 36 months, at the buyer's option. This certificate
is currently sold by American Express Bank Ltd. ("AEB") in the
London office, through a Marketing Agreement with IDSC, only to
AEB's clients who are neither citizens nor residents of the
United States. This certificate is not registered for sale in
the United States.
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PAGE 5
IDSC is by far the largest issuer of face-amount certificates
in the United States. However, such certificates compete with many
other investments offered by banks, savings and loan associations,
mutual funds, broker-dealers and others, which may be viewed by
potential clients as offering a comparable or superior combination
of safety and return on investment. In particular, some of IDSC's
products are designed to be competitive with the types of
investment offered by banks and thrifts. Since IDSC's face-amount
certificates are securities, their offer and sale are subject to
regulation under federal and state securities laws. IDSC's
certificates are backed by its qualified assets on deposit and are
not insured by any governmental agency.
For all of the certificates, except for the IDS Investors
Certificate and the IDS Special Deposits, IDSC's current policy
is to re-evaluate the certificate rates weekly to respond to
marketplace changes. For the IDS Investors Certificate and the
IDS Special Deposits, IDSC's current policy is to re-evaluate the
rates on a daily basis. For each product, IDSC refers to an
independent index to set the rates for new sales. Except for IDS
Special Deposits, IDSC must set the rates within a specified
range of the rate from such index. For renewals, IDSC uses such
rates as an indication of the competitors' rates, but is not
required to set rates within a specified range.
For the IDS Flexible Savings Certificate, IDS Cash Reserve
Certificate and the IDS Series D-1 Investment Certificate, the
published rates of the BANK RATE MONITOR National Index (trademark) for
various length bank certificates of deposit are used as the guide
in setting rates. For the IDS Installment Certificate, the
average interest rate for money market deposit accounts, as
published by the BANK RATE MONITOR National Index (trademark), North Palm
Beach, FL, is used as a guide in setting rates. For the IDS
Future Value Certificate, the average quoted yields of certain
U.S. Treasury Bonds for similar maturities, as published in the
Wall Street Journal and the New York Times, are used as a guide
in setting rates. For the IDS Investors Certificate and IDS
Special Deposits, the published average rates for comparable
length dollar deposits available on an interbank basis, referred
to as the London Interbank Offered Rates (LIBOR), are used as a
guide in setting rates.
To compete with popular short-term investment vehicles such
as certificates of deposit, money market certificates and money
market mutual funds that offer comparable yields, liquidity and
safety of principal, IDSC offers the IDS Cash Reserve Certificate
and the IDS Flexible Savings Certificate. The yields and
features on these products are designed to be competitive with
such short-term products. The IDS Investors Certificate and IDS
Special Deposits also compete with short-term products but use
LIBOR rates. The IDS Future Value Certificate has certain
features similar to those of zero coupon bonds and is intended to
compete with that type of investment as well as with intermediate
to long-term certificates of deposit. The IDS Installment
Certificate is intended to help clients save systematically and
may compete with passbook savings and NOW accounts. The IDS
Stock Market Certificate is designed to offer interest tied to a
<PAGE>
PAGE 6
major stock market index and guaranteed principal. Certain banks
offer certificates of deposit that have features similar to the
Stock Market Certificate.
IDSC's gross income is derived principally from interest and
dividends generated by its investments. IDSC's net income is
determined by deducting from such gross income its provision for
certificate reserves, and other expenses, including taxes, the
fee paid to IDS for advisory and other services and the
distribution fees paid to IDS Financial Services Inc. and AEBI
and marketing fees paid to AEB.
The following table shows IDSC's sales and surrenders of
certificates for the three years ended December 31, 1993:
1993 1992 1991
Single Payment* (Cash Basis) ($ in millions)
Non-Qualified
Sales $ 822.5 $1,046.3 $1,208.0
Surrenders 1,162.9 1,368.3 1,536.0
Qualified
Sales 115.4 136.5 157.6
Surrenders 220.4 249.1 232.6
Installment Payment (Face-amount Basis)
Non-Qualified
Sales 369.0 392.7 358.3
Surrenders 327.5 330.9 333.8
Qualified
Sales 6.1 9.9 20.2
Surrenders 23.1 48.5 47.6
*Includes Cash Reserve, Flexible Savings, Single Payment, Future
Value, Investors, Stock Market and IDS Special Deposits
certificates.
In 1993 approximately 12% of single payment certificate sales
and 2% of installment certificate sales were of tax-qualified
certificates for use in IRAs, and 401(k) plans and other
qualified retirement plans.
The certificates offered by IDS Financial Services Inc. are
sold pursuant to a distribution agreement which is terminable on
60 days' notice and is subject to annual approval by IDSC's Board
of Directors, including a majority of the directors who are not
"interested persons" of IDS Financial Services Inc. or IDSC as
that term is defined in the 1940 Act. The agreement provides for
the payment of distribution fees to IDS Financial Services Inc.
for services provided thereunder. IDS Financial Services Inc. is
a wholly owned subsidiary of IDS. For the distribution of the
IDS Investors Certificate, IDS Financial Services Inc., in turn,
has a Selling Agent Agreement with AEBI. For distribution of IDS
Special Deposits, IDSC has a Marketing Agreement with AEB. Both
agreements are terminable upon 60 days' notice and similarly
subject to annual approval of the disinterested directors of
IDSC.
<PAGE>
PAGE 7
IDSC receives advice, statistical data and recommendations
with respect to the acquisition and disposition of securities for
its portfolio from IDS, under an investment management agreement
which is subject to annual renewal by IDSC's Board of Directors,
including a majority of the directors who are not "interested
persons" of IDS or IDSC.
IDSC is required to maintain "qualified investments" meeting
the standards of Section 28(b) of the 1940 Act. The carrying value
of said investments must be at least equal to IDSC's net
liabilities on all outstanding face-amount certificates plus
$250,000. IDSC's qualified assets consist of cash and cash
equivalents, first mortgage loans on real estate, U.S. government
and government agency securities, municipal bonds, corporate bonds,
preferred stocks and other securities meeting specified standards.
IDSC is subject to annual examination and supervision by the State
of Minnesota, Department of Commerce (Banking Division).
Distribution fees on sale of certain certificates are deferred
and amortized over the estimated lives of the related certificates,
which is approximately 10 years. Upon surrender, unamortized
deferred distribution fees are charged against income. Thus, these
certificates must remain in effect for a period of time to permit
IDSC to recover such costs.
Item 2. Properties
None.
Item 3. Legal Proceedings
Registrant has no material pending legal proceedings other
than ordinary routine litigation incidental to its business.
Item 4. Submission of Matters to a Vote of Security Holders
Item omitted pursuant to General Instructions J(1)(a) and (b)
of Form 10-K.
PART II
Item 5. Market for the Registrant's Common Stock and Related
Stockholder Matters
There is no market for the Registrant's common stock since
it is a wholly owned subsidiary of IDS and, indirectly, of American
Express. Frequency and amount of dividends declared during the
past two years are as follows:
Dividend Payable Date Cash In-Kind*
For year ended December 31, 1993:
February 9, 1993 $11,000,000 $ -
May 13, 1993 13,000,000 -
August 10, 1993 13,000,000 -
November 10, 1993 12,500,000 -
December 31, 1993 15,000,000 -
Total $64,500,000 $ -
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Dividend Payable Date Cash In-Kind*
For year ended December 31, 1992:
February 10, 1992 $ 7,300,000 $ -
May 8, 1992 15,200,000 -
August 10, 1992 21,250,000 -
November 10, 1992 40,000,000 -
December 30, 1992 - 64,557,994
Total $83,750,000 $64,557,994
* Consisted of an investment security at amortized cost.
Restriction on the Registrant's present or future ability to
pay dividends:
Certain series of installment certificates outstanding provide
that cash dividends may be paid by IDSC only in calendar years for
which additional credits of at least 1/2 of 1% on such series of
certificates have been authorized by IDSC. This restriction has
been removed for 1994 and 1995 by action of IDSC on additional
credits in excess of this requirement.
Appropriated retained earnings resulting from the
predeclaration of additional credits to IDSC's certificate holders
are not available for the payment of dividends by IDSC. In
addition, IDSC will discontinue issuance of certificates subject to
the predeclaration of additional credits and will make no further
predeclaration as to outstanding certificates if at any time the
capital and unappropriated retained earnings of IDSC should be less
than 5% of net certificate reserves (certificate reserves less
certificate loans). At December 31, 1993, the capital and
unappropriated retained earnings amounted to 5.84% of net
certificate reserves.
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<TABLE>
<CAPTION>
Item 6. Selected Financial Data
The following selected financial information has been derived from
the audited financial statements and should be read in conjunction
with those statements and the related notes to financial
statements. Also see Management's Discussion and Analysis of
Financial Condition and Results of Operations for additional
comments.
Year Ended Dec. 31, 1993 1992 1991 1990 1989
- -------------------------------------------------------------------------------------------
($ thousands)
<S> <C> <C> <C> <C> <C>
Statement of Operations Data:
Investment income............. $ 236,859 $ 294,799 $ 351,970 $ 331,521 $ 248,472
Investment expenses........... 65,404 69,630 63,353 55,176 42,082
- -------------------------------------------------------------------------------------------
Net investment income before
provisions for certificate
reserves and income taxes... 171,455 225,169 288,617 276,345 206,390
Net provision for certificate
reserves.................... 123,516 178,175 258,443 271,267 208,219
- -------------------------------------------------------------------------------------------
Net investment income (loss)
before income taxes......... 47,939 46,994 30,174 5,078 (1,829)
Income tax benefit............ 3,365 11,666 20,537 28,588 26,040
- -------------------------------------------------------------------------------------------
Net investment income......... 51,304 58,660 50,711 33,666 24,211
- -------------------------------------------------------------------------------------------
Realized gain (loss) on
investments - net:
Securities of unaffiliated
issuers..................... (9,870) (9,498) (129) 2,178 1,672
Other - unaffiliated.......... (418) (500) (1,053) (851) -
- -------------------------------------------------------------------------------------------
Total gain (loss) on
investments................. (10,288) (9,998) (1,182) 1,327 1,672
Income tax expense (benefit).. (4,617) (3,399) (402) 451 569
- -------------------------------------------------------------------------------------------
Net realized gain (loss) on
investments ................ (5,671) (6,599) (780) 876 1,103
Net income - wholly owned
subsidiary.................. 120 3 139 286 280
- -------------------------------------------------------------------------------------------
Net income ................... $ 45,753 $ 52,064 $ 50,070 $ 34,828 $ 25,594
- -------------------------------------------------------------------------------------------
Dividends declared:
Cash........................ $ 64,500 $ 83,750 $ 74,800 $ 47,000 $ 17,900
In-kind(a).................. - 64,558 25,466 - 1,500
- -------------------------------------------------------------------------------------------
Balance Sheet Data:
Total assets.................. $2,951,405 $3,444,985 $3,971,583 $4,168,586 $3,398,486
Certificate loans............. 67,429 77,347 88,570 99,192 110,608
Certificate reserves.......... 2,777,451 3,256,472 3,712,570 3,859,530 3,150,917
Stockholder's equity.......... 161,138 179,885 223,820 273,600 231,494
- -------------------------------------------------------------------------------------------
IDS Certificate Company (IDSC) is 100 percent owned by IDS Financial Corporation (IDS).
(a) Consisted of an investment security at amortized cost in 1992 and a reduction in the
note receivable from IDS in 1991 and 1989.
</TABLE>
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PAGE 10
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations
RESULTS OF OPERATIONS
IDS Certificate Company's (IDSC) earnings are derived from the
after-tax yield on invested assets less investment expenses and
interest credited on certificate reserve liabilities. Significant
changes and trends occur largely due to interest rate changes and
the difference between rates of return on investments, rates of
interest credited to certificate holder accounts and the mix of
fully taxable and tax-advantaged investments in the IDSC portfolio.
In 1989 and 1990, total assets and certificate reserve liabilities
increased due to certificate sales exceeding certificate maturities
and surrenders. The increases in total assets in 1989 and 1990
also reflect capital contributions from its parent, IDS Financial
Corporation (IDS). (See Liquidity and Cash Flow Discussion)
Total assets and certificate reserve liabilities decreased in 1993,
1992 and 1991 due to certificate maturities and surrenders
exceeding certificate sales. The excess of certificate maturities
and surrenders over certificate sales in 1993, 1992 and 1991
resulted primarily from lower accrual rates declared by IDSC in
those years, reflecting lower interest rates available in the
marketplace.
1993 Compared to 1992
Gross investment income decreased 20 percent due to a lower balance
of invested assets and lower investment yields.
The 6.1 percent decrease in investment expenses resulted primarily
from lower distribution fees due to lower certificate sales, and
lower investment advisory and services fee due to a lower asset
base on which the fee is calculated. These decreases were
partially offset by higher amortization of interest rate caps. The
higher amortization reflects additional purchases and accelerated
amortization of certain interest rate caps in 1993.
Net provision for certificate reserves decreased 31 percent
reflecting lower accrual rates and a lower average balance of
certificate reserves.
The $7.1 million decrease in income tax benefit resulted primarily
from lower tax-advantaged income in 1993. The impact of the change
in Federal statutory income tax rate in 1993 was an increase in
income tax benefit of $.6 million of which $.4 million reflects the
increase in rate on the Dec. 31, 1992 balance of temporary
differences.
1992 Compared to 1991
Net investment income of $58.7 million in 1992 was 16 percent
higher than in 1991. The primary reason was an interest rate
environment in 1992, that resulted in slightly lower long-term
investment yields than in 1991 while short-term rates declined
significantly. As a result,
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PAGE 11
IDSC's investment yields decreased, however, interest rates
credited on certificate reserve liabilities were significantly
lower due to the short-term repricing nature of certificate
products.
Gross investment income decreased 16 percent due to a lower balance
of invested assets and lower investment yields.
The 10 percent increase in investment expenses resulted primarily
from higher amortization of premiums paid for interest rate caps
and index options used as hedges against changes in rates credited
on certificate liabilities. Distribution fees were lower due
primarily to lower certificate sales. Investment advisory and
services fee was lower due a lower asset base on which the fee is
calculated.
Net provision for certificate reserves decreased 31 percent
reflecting lower accrual rates and a lower average balance of
certificate reserves.
The decrease in income tax benefit resulted primarily from higher
pretax income and lower tax-advantaged income in 1992.
LIQUIDITY AND CASH FLOW
IDSC's principal sources of cash are reserve payments from sales of
face-amount certificates and cash flows from investments. In turn,
IDSC's principal uses of cash are payments to certificate holders
for matured and surrendered certificates, purchase of investments
and payments of dividends to IDS.
Although certificate sales volume decreased 18 percent in 1993,
total sales remained strong reflecting clients' ongoing desire for
safety of principal. Sales of single payment certificates totaled
$.9 billion compared to $1.1 billion during 1992, $1.4 billion
during 1991 and $1.6 billion during both 1990 and 1989.
IDSC, as an issuer of face-amount certificates, is affected
whenever there is a significant change in interest rates. In view
of the uncertainty in the investment markets and due to the
short-term repricing nature of certificate reserve liabilities,
IDSC continues to invest in securities with relatively short
maturities and in securities that provide for more immediate,
periodic interest/principal payments, resulting in improved
liquidity. To accomplish this, IDSC continues to invest much of
its cash flow in mortgage-backed securities and in sinking-fund
preferred stock.
IDSC's investment program is designed to maintain an investment
portfolio that will produce the highest possible after-tax yield
within acceptable risk standards with additional emphasis on
liquidity. The program considers investment securities as
investments acquired with the intent and ability to hold for the
foreseeable future and is designed to meet anticipated certificate
holder obligations. IDSC normally holds its portfolio securities
until maturity or retirement, at which time the carrying values are
expected to be recovered.
<PAGE>
PAGE 12
At Dec. 31, 1993, securities carried at cost decreased to $2.4
billion from $2.9 billion at Dec. 31, 1992. These securities,
which comprise 85 percent of IDSC's total invested assets, are
highly rated and well diversified. 96 percent are of investment
grade and, other than U.S. Government Agency mortgage-backed
securities, no one issuer represents more than two percent of these
securities. See note 3 to Financial Statements for additional
information on ratings and diversification.
Gross unrealized gains and gross unrealized losses on investment
securities carried at cost were $119 million and $6.5 million,
respectively, at Dec. 31, 1993.
In 1993, in reaction to the changing interest rate environment,
IDSC continued to restructure a portion of its investment security
portfolio by selling $349 million of investment securities. The
sales included $253 million of mortgage-backed securities purchased
at a premium. These securities were sold to decrease exposure to
prepayment activity on the underlying pool of mortgages that could
have had a negative impact on future yields on these securities.
Cash flows of $897 million from operating activities, scheduled
maturities, and redemptions of investments in 1993, were more than
adequate to fund the net cash outflow of $603 million related to
certificate obligations.
During 1992, IDSC charged earnings with $23.7 million of
write-downs in the value of certain interest-only, mortgage-backed
securities that resulted from high prepayments due to refinancing
and additional payment activity on the underlying pool of mortgages
due to declining interest rates. At Dec. 31, 1992, the carrying
value of these securities was $30.2 million. During 1993,
additional write-downs of $.6 million were recorded and all of
these securities with a carrying value of $27.4 million were sold
for $14.3 million.
During 1993, IDSC's reserve for possible losses on its below
investment grade securities was reduced by $12.2 million from $14.2
million at Dec. 31, 1992 to $2.0 million at Dec. 31, 1993. The
reduction reflects sales and exchanges of certain of these issues
in 1993. IDSC does not generally invest in below investment grade
securities and is limited by regulation as to the amount of such
securities it can hold. IDSC's holdings in these securities result
principally from the downgrading of the securities subsequent to
purchase by IDSC. Management believes that reserves for possible
losses on securities owned at Dec. 31, 1993, are adequate, however,
future economic factors could impact the ratings of securities
owned and additional reserves for losses may need to be recognized.
Impact of New Accounting Standards
In May of 1993, the Financial Accounting Standards Board issued
SFAS No. 115, "Accounting for Certain Investments in Debt and
Equity Securities," which IDSC will implement, effective Jan. 1,
1994. Under<PAGE>
PAGE 13
the new rules, debt securities that IDSC has both the positive
intent and ability to hold to maturity will be carried at amortized
cost. Debt securities that IDSC does not have the positive intent
and ability to hold to maturity and all marketable equity
securities will be classified as available-for-sale and carried at
fair value. Unrealized gains and losses on securities classified
as available-for-sale will be carried as a separate component of
Stockholder's Equity. The effect of the new rules will be to
increase Stockholder's Equity by approximately $4 million,
net of taxes, as of Jan. 1, 1994.
SFAS No. 114, "Accounting by Creditors for Impairment of a Loan,"
is expected to have no material impact on IDSC's results of
operations or financial condition.
Dividends
Cash dividends ranging from $17.9 million to $83.8 million were
declared during each of the years 1989 to 1993. In addition,
dividends-in-kind were declared consisting of an investment
security of $64.6 million in 1992 and a reduction in the notes
receivable from IDS of $25.5 million and $1.5 million in 1991 and
1989, respectively. As a result of projected adequate earnings in
1994 and capital in excess of regulatory requirements, IDSC
anticipates declaring regular cash dividends of approximately $50
million in 1994.
Capital Contributions
IDSC received capital contributions from IDS of $54.7 million in
Fund American Companies, Inc. preferred stock in 1990 and $18.5
million in cash and $85.9 million in Fund American Companies, Inc.
preferred stock in 1989. American Express Company made capital
contributions to several subsidiaries in 1989 and IDSC, through
IDS, was able to take advantage of this special opportunity. The
contributions benefited IDSC by providing support for the increased
certificate sales volumes in 1991, 1990 and 1989, allowing for
future growth and for payment of regular dividends.
Due to the decrease in IDSC's assets in 1992, IDSC felt its holding
in Fund American Companies, Inc. preferred stock was too large an
exposure to a single credit risk, resulting in IDSC's
dividend-in-kind of the issue to IDS. IDS subsequently contributed
capital to IDSC of $52.3 million. The contribution was necessary
in management of IDSC's regulatory capital requirements.
Ratios
The ratio of stockholder's equity to total assets less certificate
loans at Dec. 31, 1993, was 5.59 percent, compared to 5.34 percent
in 1992. IDSC intends to manage this ratio to five percent in
1994, which meets current regulatory requirements.
<PAGE>
PAGE 14
IDS CERTIFICATE COMPANY
Item 8. Financial Statements and Supplementary Data
1. Financial Statements and Schedules Required under Regulation S-X
Index to Financial Statements and Schedules Page
Financial Statements:
Report of Independent Auditors 21
Responsibility for Preparation of Financial Statements 22
Balance Sheet, December 31, 1993 and 1992 23-24
Statement of Operations, year ended December 31, 1993,
1992 and 1991 25-26
Statement of Stockholder's Equity, year ended
December 31, 1993, 1992 and 1991 27
Statement of Cash Flows, year ended December 31,
1993, 1992 and 1991 28
Notes to Financial Statements 29-43
Schedules:
I - Investments in Securities of Unaffiliated Issuers,
December 31, 1993
II - Investments in and Advances to Affiliates and Income
Thereon, December 31, 1993, 1992 and 1991
III - Mortgage Loans on Real Estate and Interest earned on
Mortgages, year ended December 31, 1993
V - Qualified Assets on Deposit, December 31, 1993
IX - Supplementary Profit and Loss Information, three years
ended December 31, 1993
XI - Certificate Reserves, year ended December 31, 1993
XII - Valuation and Qualifying Accounts, year ended
December 31, 1993, 1992 and 1991
Schedules III and XI for the year ended December 31, 1992
and Schedule XI for the year ended December 31, 1991 are
included in Registrant's Annual Reports on Form 10-K for the
fiscal years ended December 31, 1992 and December 31, 1991,
respectively, Commission file 2-23772, and are incorporated
herein by reference.
2. Supplementary Data
None
<PAGE>
PAGE 15
Item 9. Changes in and Disagreements With Accountants on Accounting
and Financial Disclosure
None
<PAGE>
PAGE 16
PART III
Items omitted pursuant to General Instructions J(1)(a) and (b) of
Form 10-K.
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports
on Form 8-K
(a) List the following documents filed as a part of the
report:
1. All financial statements. See Item 8.
2. Financial statement schedules. See Item 8.
3. Exhibits
(1)a. The Distribution Agreement dated November 18,
1988, between Registrant and IDS Financial Services
Inc., filed electronically as Exhibit 1(a) to the
Registration Statement for the American Express
International Investment Certificate (now called the
IDS Investors Certificate), is incorporated herein by
reference.
(1)b. Form of the Distribution Agreement for the
American Express Savings Certificate between Registrant
and American Express Service Corporation, filed
electronically as Exhibit 1(b) to the Registration
Statement for the American Express International
Investment Certificate (now called the IDS Investors
Certificate), is incorporated herein by reference.
(1)c. Selling Agent Agreement dated June 1, 1990,
between American Express Bank International and IDS
Financial Services Inc., for the IDS Investors and IDS
Stock Market Certificates, filed electronically as
Exhibit 1(c) to the Post-Effective Amendment No. 5 to
Registration Statement No. 33-26844 for the IDS
Investors Certificate, is incorporated herein by
reference.
(1)d. Marketing Agreement dated October 10, 1991,
between Registrant and American Express Bank Ltd.,
filed electronically as Exhibit 1(d) to Post-Effective
Amendment No. 31 to Registration Statement No. 2-55252
for the Series D-1 Investment Certificate, is
incorporated herein by reference.
(3)a. The ISA Certificate of Incorporation and ISA By-
Laws, filed electronically as Exhibit 3(a) and 3(c) to
Post-Effective Amendment No. 2 to Registration Statement
No. 2-95577 are incorporated herein by reference.
<PAGE>
PAGE 17
(3)c. Certificate of Amendment, dated April 2, 1984,
to ISA's Certificate of Incorporation filed
electronically as Exhibit 3(b) to Post-Effective
Amendment No. 2 to Registration Statement No. 2-95577
is incorporated herein by reference.
(4) Forms of Cash Reserve Certificate, Future Value
Certificate, Installment Investment Certificate, Series
D-1 Investment Certificate and Variable Term
Certificate filed electronically as Exhibit 4 to Post-
Effective Amendment No. 2 to Registration Statement No.
2-95577 are incorporated by reference. Form of
Certificate for IDS Stock Market Certificate filed
electronically as Exhibit 4 to Pre-Effective Amendment
No. 2 to Registration Statement No. 33-22503, is
incorporated herein by reference.
(10)a. The Investment Advisory and Services Agreement
between ISA and IDS/American Express Inc. dated January
12, 1984 filed electronically as Exhibit 10(a) to Post-
Effective Amendment No. 2 to Registration Statement No.
2-95577 is incorporated herein by reference.
(10)b. Depository and Custodial Agreement dated
September 30, 1985 between IDS Certificate Company and
IDS Trust Company, filed electronically as Exhibit
10(b) to Registrant's Post-Effective Amendment No. 2 to
Registration Statement No. 2-95577 is incorporated
herein by reference.
(10)c. Loan Agreement between Registrant and Investors
Syndicate Development Corporation dated October 13,
1970, filed electronically as Exhibit 10(c) to Post-
Effective Amendment No. 2 to Registration Statement No.
2-95577 is incorporated herein by reference.
(10)d. Agreement for the servicing of Residential
Mortgage Loans between ISA and Advance Mortgage
Company, Ltd., dated August 31, 1980, filed
electronically as Exhibit 10(d) to Post-Effective
Amendment No. 2 to Registration Statement No. 2-95577
is incorporated herein by reference.
(10)e. Agreement for the servicing of Commercial
Mortgage Loans between ISA and FBS Mortgage
Corporation, dated October 1, 1980, filed
electronically as Exhibit 10(e) to Post-Effective
Amendment No. 2 to Registration Statement No. 2-95577
is incorporated herein by reference.
(10)f. Agreement by and between registrant and
IDS/American Express Inc. ("IDS") providing for the
purchase by IDS of a block of portfolio securities from
registrant, filed as Exhibit 10.5 to the September 30,
1981 Quarterly Report on Form 10-Q of Alleghany
Corporation, is incorporated herein by reference.
<PAGE>
PAGE 18
(10)g. Transfer Agent Agreements for the servicing of
the American Express Savings Certificate, filed
electronically as Exhibit 10(g) to Pre-Effective
Amendment No. 1 to Registration Statement No. 33-25385,
are incorporated herein by reference.
(10)h. Foreign Deposit Agreement dated November 21,
1990, between IDS Certificate Company and IDS Bank &
Trust, filed electronically as Exhibit 10(h) to Post-
Effective Amendment No. 5 to Registration Statement No.
33-26844, is incorporated herein by reference.
(25)a. Officers' Power of Attorney dated February 1,
1994, filed as Exhibit 25(a) to Post-Effective Amendment
No. 34 to Registration Statement No. 2-55252, is
incorporated herein by reference.
(25)b. Directors' Power of Attorney dated February 1,
1994, filed as Exhibit 25(b) to Post-Effective Amendment
No. 34 to Registration Statement No. 2-55252, is
incorporated herein by reference.
(b) Reports on Form 8-K filed during the last quarter of
the period covered by this report.
None
<PAGE>
PAGE 19
SIGNATURES
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.
REGISTRANT IDS CERTIFICATE COMPANY
/s/ Stuart A. Sedlacek
BY BRUCE A. KOHN
NAME AND TITLE Stuart A. Sedlacek* **
President
DATE March 29, 1994
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 dates indicated.
BY BRUCE A. KOHN
NAME AND TITLE Stuart A. Sedlacek* **
President
Principal Executive Officer
and Director
DATE March 29, 1994
BY BRUCE A. KOHN
NAME AND TITLE John M. Knight,* Controller
(Principal Accounting Officer)
DATE March 29, 1994
BY BRUCE A. KOHN
NAME AND TITLE Morris Goodwin,* Treasurer and
Principal Financial Officer
DATE March 29, 1994
BY BRUCE A. KOHN
NAME AND TITLE David R. Hubers,** Director
DATE March 29, 1994
BY BRUCE A. KOHN
NAME AND TITLE Charles W. Johnson,** Director
DATE March 29, 1994
BY BRUCE A. KOHN
NAME AND TITLE Edward Landes,** Director
DATE March 29, 1994
BY BRUCE A. KOHN
NAME AND TITLE Peter A. Lefferts,* Director
DATE March 29, 1994
BY BRUCE A. KOHN
NAME AND TITLE John V. Luck,** Director
DATE March 29, 1994
<PAGE>
PAGE 20
BY BRUCE A. KOHN
NAME AND TITLE James A. Mitchell, Director
DATE March 29, 1994
BY BRUCE A. KOHN
NAME AND TITLE Harrison Randolph,** Director
DATE March 29, 1994
BY BRUCE A. KOHN
NAME AND TITLE Gordon H. Ritz,** Director
DATE March 29, 1994
* Signed pursuant to Officers' Power of Attorney dated February 1,
1994 filed as Exhibit 25(a) to Post-Effective Amendment
No. 34 to Registration Statement No. 2-55252, incorporated herein
by reference.
_______________________
Bruce A. Kohn
** Signed pursuant to Directors' Power of Attorney dated February
1, 1994 filed as Exhibit 25(b) to Post-Effective Amendment No. 34
to Registration Statement No. 2-55252, incorporated herein by
reference.
_______________________
Bruce A. Kohn
<PAGE>
PAGE 21
REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Security Holders
IDS Certificate Company:
We have audited the accompanying balance sheets of IDS
Certificate Company as of December 31, 1993 and 1992, and the
related statements of operations, stockholder's equity, and cash
flows for each of the three years in the period ended December 31,
1993. Our audits also included the financial statement schedules
listed in the index at item 8. These financial statements and
schedules are the responsibility of the management of IDS
Certificate Company. Our responsibility is to express an opinion
on these financial statements and schedules 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
financial statements and schedules are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements and schedules. Our procedures included confirmation of
investments owned as of December 31, 1993 and 1992 by
correspondence with custodians and brokers. 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 financial statements referred to above present
fairly, in all material respects, the financial position of IDS
Certificate Company at December 31, 1993 and 1992, and the results
of its operations and its cash flows for each of the three years in
the period ended December 31, 1993, in conformity with generally
accepted accounting principles. Also, in our opinion, the related
financial statement schedules, when considered in relation to the
basic financial statements taken as a whole, present fairly in all
material respects the information set forth therein.
ERNST & YOUNG
Minneapolis, Minnesota
February 3, 1994
<PAGE>
PAGE 22
IDS Certificate Company
Responsibility for Preparation of Financial Statements
The management of IDS Certificate Company is responsible for the
preparation of the financial statements and related notes included
in this Form 10-K. The statements have been prepared in conformity
with generally accepted accounting principles appropriate in the
circumstances, and include amounts based on the best judgment of
management. Financial information included elsewhere in this Form
10-K is consistent with these financial statements.
In recognition of its responsibility for the integrity and
objectivity of data in the financial statements, management
maintains a system of internal accounting controls. This system
includes an organizational structure with clearly defined lines of
responsibility and delegation of authority. To ensure the
effective administration of internal control, employees are
carefully selected and trained, written policies and procedures are
developed and disseminated, and appropriate communication channels
are provided to foster an environment conducive to the effective
functioning of controls.
The system is supported by an internal auditing function that
reports its findings to management throughout the year. IDS
Certificate Company's independent auditors are engaged to express
an opinion on the year-end financial statements. They objectively
and independently review the performance of management in carrying
out its responsibility for reporting operating results and
financial condition. With the coordinated support of the internal
auditors, they review and test the system of internal accounting
controls and the data contained in the financial statements.
<PAGE>
PAGE 23
<TABLE>
<CAPTION>
Balance Sheet, Dec. 31,
- ---------------------------------------------------------------------------------------
Assets
Qualified Assets (note 2) 1993 1992
- -----------------------------------------------------------------------------------------
($ thousands)
<S> <C> <C>
Investments in unaffiliated issuers (note 3):
Cash and cash equivalents................... $ 54,059 $ 71,359
Bonds and notes...................................... 1,632,657 1,932,189
Preferred stocks..................................... 797,044 991,505
First mortgage loans on real estate.................. 281,865 233,796
Certificate loans - secured by certificate reserves.. 67,429 77,347
Other................................................ 2,218 150
Investments in and advances to affiliates.............. 4,812 2,787
- -----------------------------------------------------------------------------------------
Total investments...................................... 2,840,084 3,309,133
Receivables:
Dividends and interest............................... 40,432 50,441
Investment securities sold........................... 10,068 7,550
- -----------------------------------------------------------------------------------------
Total receivables...................................... 50,500 57,991
- -----------------------------------------------------------------------------------------
Other (notes 8 and 9).................................. 41,153 44,049
- -----------------------------------------------------------------------------------------
Total qualified assets................................. 2,931,737 3,411,173
- -----------------------------------------------------------------------------------------
Other Assets
- -----------------------------------------------------------------------------------------
Deferred distribution fees............................. 19,615 21,550
Deferred federal income taxes (note 7)................. - 11,281
Other.................................................. 53 981
- -----------------------------------------------------------------------------------------
Total other assets..................................... 19,668 33,812
- -----------------------------------------------------------------------------------------
Total assets........................................... $2,951,405 $3,444,985
- -----------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
<PAGE>
PAGE 24
<TABLE>
<CAPTION>
Balance Sheet, Dec. 31,
- ---------------------------------------------------------------------------------------
Liabilities and Stockholder's Equity
Liabilities 1993 1992
- ---------------------------------------------------------------------------------------
($ thousands)
<S> <C> <C>
Certificate Reserves (note 4):
Installment certificates:
Reserves to mature................................ $ 352,649 $ 358,345
Additional credits and accrued interest........... 18,555 18,067
Advance payments and accrued interest............. 1,943 2,277
Other............................................. 54 53
Fully paid certificates:
Reserves to mature................................ 2,243,416 2,701,724
Additional credits and accrued interest........... 160,440 175,651
Due to unlocated certificate holders................ 394 355
- ---------------------------------------------------------------------------------------
Total certificate reserves.......................... 2,777,451 3,256,472
- ---------------------------------------------------------------------------------------
Accounts Payable and Accrued Liabilities:
Due to IDS (note 6A).............................. 1,182 1,419
Due to IDS for federal income taxes............... 5,862 -
Due to affiliates (note 6B and 6C)................ 1,457 1,539
Payable for investment securities purchased....... - 160
Payable upon return of securities loaned ......... - 1,643
Accounts payable, accrued expenses and other...... 4,150 3,867
- ---------------------------------------------------------------------------------------
Total accounts payable and accrued liabilities...... 12,651 8,628
Deferred federal income taxes (note 7).............. 165 -
- ---------------------------------------------------------------------------------------
Total liabilities................................... 2,790,267 3,265,100
- ---------------------------------------------------------------------------------------
Stockholder's Equity (notes 4B, 4C, and 5):
Common stock, $10 par - authorized and
issued 150,000 shares............................. 1,500 1,500
Additional paid-in capital.......................... 147,144 166,144
Retained earnings:
Appropriated for predeclared additional
credits/interest................................ 2,726 2,804
Appropriated for additional interest on
advance payments................................ 25 100
Unappropriated.................................... 9,743 9,337
- ---------------------------------------------------------------------------------------
Total stockholder's equity.......................... 161,138 179,885
- ---------------------------------------------------------------------------------------
Total liabilities and stockholder's equity.......... $2,951,405 $3,444,985
- ---------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
<PAGE>
PAGE 25
<TABLE>
<CAPTION>
Statement of Operations
- -----------------------------------------------------------------------------------------
Year ended Dec. 31, 1993 1992 1991
- -----------------------------------------------------------------------------------------
($ thousands)
<S> <C> <C> <C>
Investment Income:
Interest income from investments:
Bonds and notes:
Unaffiliated issuers........................ $140,991 $178,071 $239,193
IDS......................................... - - 3,820
Mortgage loans on real estate:
Unaffiliated................................ 24,071 18,430 10,445
Affiliated.................................. 78 88 97
Certificate loans........................... 3,882 4,479 5,061
Dividends....................................... 67,115 92,599 92,374
Other........................................... 722 1,132 980
- ------------------------------------------------------------------------------------------
Total investment income......................... 236,859 294,799 351,970
- ------------------------------------------------------------------------------------------
Investment Expenses:
IDS and affiliated company fees (note 6):
Distribution.................................. 28,477 32,752 35,888
Investment advisory and services.............. 15,036 17,851 19,787
Depositary.................................... 201 225 279
Transfer agent................................ - 7 30
Options......................................... 9,419 10,323 1,266
Interest rate caps.............................. 11,667 7,649 5,077
Other........................................... 604 823 1,026
- ------------------------------------------------------------------------------------------
Total investment expenses....................... 65,404 69,630 63,353
- ------------------------------------------------------------------------------------------
Net investment income before provisions
for certificate reserves and income taxes..... $171,455 $225,169 $288,617
- ------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
<PAGE>
PAGE 26
<TABLE>
<CAPTION>
Statement of Operations (continued)
- ---------------------------------------------------------------------------------------
Year ended Dec. 31, 1993 1992 1991
- ---------------------------------------------------------------------------------------
($ thousands)
<S> <C> <C> <C>
Provision for Certificate Reserves (notes 4 and 9):
According to the terms of the certificates:
Provision for certificate reserves............ $ 20,555 $ 28,685 $ 21,402
Interest on additional credits................ 3,605 3,904 3,984
Interest on advance payments.................. 90 68 71
Additional credits/interest authorized by IDSC:
On fully paid certificates.................... 93,546 141,197 229,039
On installment certificates................... 6,704 5,270 5,058
On advance payments........................... - 89 96
- ---------------------------------------------------------------------------------------
Total provision before reserve recoveries....... 124,500 179,213 259,650
Reserve recoveries from terminations
prior to maturity.............................. (984) (1,038) (1,207)
- ---------------------------------------------------------------------------------------
Net provision for certificate reserves.......... 123,516 178,175 258,443
- ---------------------------------------------------------------------------------------
Net investment income before income taxes....... 47,939 46,994 30,174
Income tax benefit (note 7)..................... 3,365 11,666 20,537
- ---------------------------------------------------------------------------------------
Net investment income........................... 51,304 58,660 50,711
- ---------------------------------------------------------------------------------------
Realized loss on investments - net:
Securities of unaffiliated issuers............ (9,870) (9,498) (129)
Other-unaffiliated............................ (418) (500) (1,053)
- ---------------------------------------------------------------------------------------
Total loss on investments....................... (10,288) (9,998) (1,182)
- ---------------------------------------------------------------------------------------
Income tax expense (benefit) (note 7):
Current....................................... (19,508) 6,121 (777)
Deferred...................................... 14,891 (9,520) 375
- ---------------------------------------------------------------------------------------
Total income tax benefit........................ (4,617) (3,399) (402)
- ---------------------------------------------------------------------------------------
Net realized loss on investments................ (5,671) (6,599) (780)
- ---------------------------------------------------------------------------------------
Net income - wholly owned subsidiary............ 120 3 139
- ---------------------------------------------------------------------------------------
Net income ..................................... $ 45,753 $ 52,064 $ 50,070
- ---------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
<PAGE>
PAGE 27
<TABLE>
<CAPTION>
Statement of Stockholder's Equity
- ----------------------------------------------------------------------------------------
Year ended Dec. 31, 1993 1992 1991
- ----------------------------------------------------------------------------------------
($ thousands)
<S> <C> <C> <C>
Common Stock:
Balance at beginning and end of year............ $ 1,500 $ 1,500 $ 1,500
- ----------------------------------------------------------------------------------------
Additional Paid-in Capital:
Balance at beginning of year.................... $166,144 $206,393 $206,393
Contribution from IDS........................... - 52,309
Dividends declared:
Cash.......................................... (19,000) (28,000)
Investment security........................... - (64,558)
- ----------------------------------------------------------------------------------------
Balance at end of year.......................... $147,144 $166,144 $206,393
- ----------------------------------------------------------------------------------------
Retained Earnings:
Appropriated for predeclared additional
credits/interest (note 4B):
Balance at beginning of year.................... $ 2,804 $ 4,247 $ 6,186
Transferred to unappropriated retained earnings. (78) (1,443) (1,939)
- ----------------------------------------------------------------------------------------
Balance at end of year.......................... $ 2,726 $ 2,804 $ 4,247
- ----------------------------------------------------------------------------------------
Appropriated for additional interest on
advance payments (note 4C):
Balance at beginning of year.................... $ 100 $ 100 $ 100
Transferred to unappropriated retained earnings. (75) - -
- ----------------------------------------------------------------------------------------
Balance at end of year.......................... $ 25 $ 100 $ 100
- ----------------------------------------------------------------------------------------
Unappropriated (note 5):
Balance at beginning of year.................... $ 9,337 $ 11,580 $ 59,837
Net income ..................................... 45,753 52,064 50,070
Transferred from appropriated retained earnings. 153 1,443 1,939
Dividends declared:
Cash.......................................... (45,500) (55,750) (74,800)
Reduction in note receivable from IDS......... - - (25,466)
- ----------------------------------------------------------------------------------------
Balance at end of year.......................... $ 9,743 $ 9,337 $ 11,580
- ----------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
<PAGE>
PAGE 28
<TABLE>
<CAPTION>
Statement of Cash Flows
- -------------------------------------------------------------------------------------------
Year ended Dec. 31, 1993 1992 1991
- -------------------------------------------------------------------------------------------
($ thousands)
<S> <C> <C> <C>
Cash flows from operating activities:
Net income............................................... $ 45,753 $ 52,064 $ 50,070
Adjustments to reconcile net income to net
cash provided by operating activities:
Net income of wholly owned subsidiary.................... (120) (3) (139)
Certificate reserves..................................... 123,516 178,175 258,443
Interest income added to certificate loans............... (2,454) (2,743) (3,046)
Amortization of premium/discount-net..................... 27,494 30,136 22,809
Deferred federal income taxes............................ 11,446 (13,501) (1,786)
Deferred distribution fees............................... 1,935 1,277 984
Net loss on investments.................................. 10,288 9,998 1,182
Decrease in dividends and interest receivable............ 10,009 10,946 5,430
Decrease (increase) in other assets...................... 967 2,277 (3,152)
Increase (decrease) in other liabilities................. 4,979 (2,934) 1,088
- -------------------------------------------------------------------------------------------
Net cash provided by operating activities................ 233,813 265,692 331,883
- -------------------------------------------------------------------------------------------
Cash flows from investing activities:
Maturity and redemption of investments................... 663,151 968,647 645,084
Sale of investments...................................... 335,396 616,628 436,398
Certificate loan payments................................ 8,991 10,505 10,764
Purchase of investments.................................. (577,657)(1,147,562) (922,550)
Certificate loan fundings................................ (10,275) (12,610) (14,855)
Investment in subsidiary................................. (2,000) - -
- -------------------------------------------------------------------------------------------
Net cash provided by investing activities................ 417,606 435,608 154,841
- -------------------------------------------------------------------------------------------
Cash flows from financing activities:
Reserve payments by certificate holders.................. 1,103,391 1,380,376 1,656,062
Proceeds from securities loaned to brokers............... 6,150 52,721 185,171
Proceeds from reverse repurchase agreements.............. 72,800 215,475 -
Capital contribution from IDS............................ - 52,309 -
Certificate maturities and cash surrenders............... (1,705,967)(2,007,880)(2,051,429)
Payments to brokers upon return of securities loaned..... (7,793) (53,550) (183,987)
Payments under reverse repurchase agreements............. (72,800) (215,475) -
Dividends paid........................................... (64,500) (83,750) (87,800)
- -------------------------------------------------------------------------------------------
Net cash used in financing activities.................... (668,719) (659,774) (481,983)
- -------------------------------------------------------------------------------------------
Net (decrease) increase in cash and cash equivalents..... (17,300) 41,526 4,741
Cash and cash equivalents beginning of year.............. 71,359 29,833 25,092
- -------------------------------------------------------------------------------------------
Cash and cash equivalents end of year.................... $ 54,059 $ 71,359 $ 29,833
- -------------------------------------------------------------------------------------------
Supplemental disclosures including non-cash transactions:
Cash received for income taxes........................... $ 26,606 $ 3,847 $ 15,985
Certificate maturities and surrenders through loan
reductions............................................... 13,656 16,071 17,759
Dividend-in-kind of preferred stock including related
deferred income tax of $516.............................. - 64,558 -
See notes to financial statements.
</TABLE>
<PAGE>
PAGE 29
Notes to Financial Statements ($ in thousands unless indicated
otherwise)
- -------------------------------------------------------------------
1. Summary of Significant Accounting Policies
IDS Certificate Company (IDSC) is a wholly owned subsidiary of IDS
Financial Corporation (IDS), which is a wholly owned subsidiary of
American Express Company.
IDSC is in the business of issuing face-amount investment
certificates.
Described below are certain accounting policies that are important
to an understanding of the accompanying financial statements.
Basis of Financial Statement Presentation
The accompanying financial statements are presented on a historical
cost basis without adjustment of the net assets attributable to the
1984 acquisition of IDS by American Express Company. They include
only the accounts of IDSC. IDSC uses the equity method of
accounting for its investment in its wholly owned unconsolidated
subsidiary, which is the method prescribed by the Securities and
Exchange Commission (SEC) for issuers of face-amount certificates.
Certain amounts from prior years have been reclassified to conform
to the current year presentation.
Fair Values of Financial Instruments
The fair values of financial instruments disclosed in the notes to
financial statements are estimates based upon current market
conditions and perceived risks, and require varying degrees of
management judgment.
Preferred Stock Dividend Income
IDSC recognizes dividend income from cumulative redeemable
preferred stocks with fixed maturity amounts on an accrual basis
similar to that used for recognizing interest income on debt
securities.
Securities
Cash equivalents are carried at amortized cost, which approximates
fair value. IDSC has defined cash and cash equivalents as cash in
banks and highly liquid investments with a maturity of three months
or less at acquisition and are not interest rate sensitive.
IDSC's investment program considers investment securities as
long-term investments and is designed to meet contractual
investment certificate obligations. IDSC has the ability to hold
these securities to their maturities and has the intent to hold
them for the foreseeable future.
<PAGE>
PAGE 30
Notes to Financial Statements (continued)
- -------------------------------------------------------------------
Marketable equity securities and other securities without fixed
maturity dates are carried at aggregate cost or market value,
whichever is lower. A valuation allowance is established for net
unrealized depreciation on marketable equity securities and is
charged against stockholder's equity. Bonds and notes, and
preferred stocks that either must be redeemed by the issuer or may
be redeemed by the issuer at the holder's request are carried at
amortized cost. The basis for determining realized gains and
losses on securities is the amortized cost of bonds and notes on a
"first-in, first-out" basis and the average cost of individual
issues of stocks. When there is a decline in value, that is other
than temporary, the securities are carried at estimated realizable
value.
First Mortgage Loans on Real Estate
Mortgage loans are carried at amortized cost, less reserves for
losses, which is the basis for determining any realized gains or
losses. When economic evaluations of the underlying real estate
indicate a loss on a loan is likely to occur, an allowance for such
loss is recorded. IDSC generally stops accruing interest on loans
for which interest is delinquent more than three months.
Certificates
Investment certificates may be purchased either with a lump-sum
payment or by installment payments. Certificate holders are
entitled to receive at maturity a definite sum of money. Payments
from certificate holders are credited to investment certificate
reserves. Investment certificate reserves accumulate at specified
percentage rates. Reserves also are maintained for advance
payments made by certificate holders, accrued interest thereon, and
for additional credits and accrued interest thereon. On
certificates allowing for the deduction of a surrender charge, the
cash surrender values may be less than accumulated investment
certificate reserves prior to maturity dates. Cash surrender
values on certificates allowing for no surrender charge are equal
to certificate reserves. The payment distribution, reserve
accumulation rates, cash surrender values, reserve values and other
matters are governed by the Investment Company Act of 1940 ("the
1940 Act").
Deferred Distribution Fee Expense
On certain series of certificates, distribution fees are deferred
and amortized over the estimated lives of the related certificates,
which is approximately 10 years. Upon surrender, unamortized
deferred distribution fees are charged against income.
Federal Income Taxes
IDSC's taxable income or loss is included in the consolidated
federal income tax return of American Express Company. IDSC
provides for income taxes on a separate return basis, except that,
<PAGE>
PAGE 31
Notes to Financial Statements (continued)
- -------------------------------------------------------------------
under an agreement between IDS and American Express Company, tax
benefits are recognized for losses to the extent they can be used
in the consolidated return. It is the policy of IDS and its
subsidiaries that IDS will reimburse a subsidiary for any tax
benefits recorded.
2. Deposit of Assets and Maintenance of Qualified Assets
A. Under the provisions of its certificates and the 1940 Act, IDSC
was required to have qualified assets (as that term is defined in
Section 28(b) of the 1940 Act) in the amount of $2,767,057 and
$3,244,505 at Dec. 31, 1993 and 1992, respectively. IDSC had
qualified assets of $2,931,737 at Dec. 31, 1993 and $3,411,173 at
Dec. 31, 1992, including investment securities loaned to brokers of
$nil and $1,643 at Dec. 31, 1993 and 1992, respectively.
Qualified assets are valued in accordance with such provisions of
the Code of the District of Columbia as are applicable to life
insurance companies. Qualified assets for which no provision for
valuation is made in such Code are valued in accordance with rules,
regulations or orders prescribed by the SEC. These values are the
same as financial statement carrying values, except for securities
which are carried at the lower of aggregate cost or market in the
financial statements but are valued at cost for qualified asset and
deposit maintenance purposes.
B. Pursuant to provisions of the certificates, the 1940 Act, the
central depositary agreement and to requirements of various states,
qualified assets of IDSC were deposited as follows:
<TABLE>
<CAPTION>
Dec. 31, 1993
------------------------------------------
Required
Deposits Deposits Excess
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
Deposits to meet certificate
liability requirements:
States............. $ 421 $ 393 $ 28
Central Depositary. 2,814,553 2,695,884 118,669
- ---------------------------------------------------------------------------------------
Total.............. $2,814,974 $2,696,277 $118,697
- ---------------------------------------------------------------------------------------
Dec. 31, 1992
------------------------------------------
Required
Deposits Deposits Excess
- ---------------------------------------------------------------------------------------
Deposits to meet certificate
liability requirements:
States............. $ 425 $ 410 $ 15
Central Depositary. 3,273,053 3,163,184 109,869
- ---------------------------------------------------------------------------------------
Total.............. $3,273,478 $3,163,594 $109,884
- ---------------------------------------------------------------------------------------
/TABLE
<PAGE>
PAGE 32
Notes to Financial Statements (continued)
- -------------------------------------------------------------------
The assets on deposit at Dec. 31, 1993 and 1992 consisted of
securities having a deposit value of $2,500,790 and $3,006,669,
respectively; mortgage loans of $276,711 and $228,107,
respectively; and other assets of $37,473 and $38,702,
respectively. Mortgage loans on deposit include an affiliated
mortgage loan.
IDS Bank & Trust is the central depositary for IDSC. See note 6C.
3. Investments
A. Fair values of investments in securities with fixed maturities
represent market prices and estimated fair values when quoted
prices are not available. Estimated fair values are determined by
IDSC using established procedures, involving review of market
indexes, price levels of current offerings and comparable issues,
price estimates and market data from independent brokers and
financial files. The procedures are reviewed annually. IDSC's
Vice President - Investments reports to the Board of Directors on
an annual basis regarding such pricing sources and procedures to
provide assurance that fair value is being achieved.
The amortized cost and fair value of investments in securities with
fixed maturities carried at cost are:
<TABLE>
<CAPTION>
Dec. 31, 1993
----------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government direct
obligations.............. $ 421 $ 22 $ - $ 443
Corporate bonds and
obligations.............. 704,172 45,608 3,449 746,331
State and municipal
obligations.............. 179,394 15,687 - 195,081
Mortgage-backed
securities............... 750,719 16,934 2,415 765,238
Preferred stock............ 797,044 40,933 2,657 835,320
- ---------------------------------------------------------------------------------------
2,431,750 119,184 8,521 2,542,413
Reserve for losses......... (2,049) (2,049)
- ---------------------------------------------------------------------------------------
$2,429,701 $119,184 $ 6,472 $2,542,413
- ---------------------------------------------------------------------------------------
</TABLE>
<PAGE>
PAGE 33
<TABLE>
<CAPTION>
Notes to Financial Statements (continued)
- ---------------------------------------------------------------------------------------
Dec. 31, 1992
- ---------------------------------------------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government direct
obligations.............. $ 425 $ 20 $ - $ 445
Corporate bonds and
obligations.............. 814,800 34,051 12,897 835,954
State and municipal
obligations.............. 194,317 16,848 9 211,156
Mortgage-backed
securities............... 936,857 20,975 13,659 944,173
Preferred stock............ 991,505 32,381 14,485 1,009,401
- ---------------------------------------------------------------------------------------
2,937,904 104,275 41,050 3,001,129
Reserve for losses......... (14,210) (14,210)
- ---------------------------------------------------------------------------------------
$2,923,694 $104,275 $26,840 $3,001,129
- ---------------------------------------------------------------------------------------
</TABLE>
Net unrealized gains on fixed maturities amounted to $112,712 and
$77,435 at Dec. 31, 1993 and 1992, respectively.
IDSC's reserve for possible losses on its below investment grade
securities was $2,049 at Dec. 31, 1993 compared to $14,210 at Dec.
31, 1992. The decrease reflects sales and exchanges of certain of
these issues in 1993.
The amortized cost and fair value of investments in securities with
fixed maturities by contractual maturity, are shown below. Cash
flows will differ from contractual maturities because issuers may
have the right to call or prepay obligations.
<TABLE>
<CAPTION>
Dec. 31, 1993
----------------------
Amortized Fair
Cost Value
- ---------------------------------------------------------------------------------------
<S> <C> <C>
Due in one year or less............................. $ 133,591 $ 135,839
Due from one to five years.......................... 679,639 719,175
Due from five to ten years.......................... 627,716 666,526
Due in more than ten years.......................... 240,085 255,635
- ---------------------------------------------------------------------------------------
1,681,031 1,777,175
Mortgage-backed securities.......................... 750,719 765,238
- ---------------------------------------------------------------------------------------
$2,431,750 $2,542,413
- ---------------------------------------------------------------------------------------
</TABLE>
Proceeds from sales of investments in securities with fixed
maturities during 1993 and 1992 were $330,851 and $420,713,
respectively. Gross gains of $3,272 and $17,514 and gross losses
of $19,927 and $2,730 were realized on those sales during 1993 and
1992, respectively.<PAGE>
PAGE 34
Notes to Financial Statements (continued)
- -------------------------------------------------------------------
B. Investments in securities with fixed maturities comprised 85
percent and 88 percent of IDSC's total invested assets at Dec. 31,
1993 and 1992, respectively. Securities are rated by Moody's and
Standard & Poors (S&P), or by IDS internal analysts, using criteria
similar to Moody's and S&P, when a public rating does not exist. A
summary of investments in securities with fixed maturities by
rating of investment is as follows:
Rating 1993 1992
- ------------------------------------------
Aaa/AAA...................... 35% 35%
Aa/AA........................ 4 4
Aa/A......................... 1 1
A/A.......................... 22 21
A/BBB........................ 3 6
Baa/BBB...................... 31 28
Below investment grade....... 4 5
- ------------------------------------------
100% 100%
- ------------------------------------------
Of the securities rated Aaa/AAA, 87 percent at Dec. 31, 1993 and 89
percent at Dec. 31, 1992, are U.S. Government Agency
mortgage-backed securities that are not rated by a public rating
agency. Approximately 23 percent at Dec. 31, 1993 and 25 percent
at Dec, 31, 1992 of other securities with fixed maturities are
rated by IDS internal analysts. No investment in any one issuer at
Dec. 31, 1993 and 1992, is greater than two percent and one
percent, respectively, of IDSC's total investment in securities
with fixed maturities.
At Dec. 31, 1993 and 1992, approximately ten percent and seven
percent, respectively, of IDSC's invested assets were first
mortgage loans on real estate. A summary of first mortgage loans
by region and by type of real estate is as follows:
Region 1993 1992 Property Type 1993 1992
- -------------------------------- --------------------------------------
South Atlantic....... 23% 21% Apartments................. 40% 46%
East North Central... 23 25 Retail/shopping centers.... 28 19
West North Central... 21 24 Industrial buildings....... 13 11
Middle Atlantic...... 14 16 Office buildings........... 10 12
West South Central... 8 6 Hotels/motels.............. 1 2
Mountain............. 6 3 Retirement homes........... 1 1
Pacific.............. 3 2 Residential................ - 3
New England.......... 2 3 Other...................... 7 6
- -------------------------------- --------------------------------------
100% 100% 100% 100%
- -------------------------------- --------------------------------------
<PAGE>
PAGE 35
Notes to Financial Statements (continued)
- -------------------------------------------------------------------
The carrying amounts and fair values of first mortgage loans on
real estate are as follows at Dec. 31. The fair values are
estimated using discounted cash flow analysis, using market
interest rates currently being offered for loans with similar terms
to borrowers of similar credit quality.
<TABLE>
<CAPTION>
Dec. 31, 1993
- ---------------------------------------------------------------------------------------
Carrying Fair
Amount Value
- -----------------------------------------------------------------------
<S> <C> <C>
Residential................................ $ 53 $ 59
Commercial................................. 282,773 289,726
- -----------------------------------------------------------------------
282,826 289,785
Reserve for losses......................... (961) -
- -----------------------------------------------------------------------
Net first mortgage loans on real estate $281,865 $289,785
- -----------------------------------------------------------------------
Dec. 31, 1992
- ---------------------------------------------------------------------------------------
Carrying Fair
Amount Value
- -----------------------------------------------------------------------
Residential................................ $ 6,638 $ 6,133
Commercial................................. 228,869 236,307
- -----------------------------------------------------------------------
235,507 242,440
Reserve for losses......................... (1,711) -
- -----------------------------------------------------------------------
Net first mortgage loans on real estate $233,796 $242,440
- -----------------------------------------------------------------------
</TABLE>
At Dec. 31, 1993 and 1992, commitments for fundings of first
mortgage loans, at market interest rates, aggregated $nil and $30.6
million, respectively. IDSC employs policies and procedures to
ensure the creditworthiness of the borrowers and that funds will be
available on the funding date. IDSC's first mortgage loan fundings
are restricted to 75 percent or less of the market value of the
real estate at the time of the loan funding. Management believes
there is no fair value for these commitments.
C. IDSC reserves freedom of action with respect to its acquisition
of restricted securities that offer advantageous and desirable
investment opportunities. In a private negotiation, IDSC may
purchase for its portfolio all or part of an issue of restricted
securities. Since IDSC would intend to purchase such securities
for investment and not for distribution, it would not be "acting as
a distributor" if such securities are resold by IDSC at a later
date.
The fair values of restricted securities are determined by the
Board of Directors using the procedures and factors described in
paragraph A of note 3.<PAGE>
PAGE 36
Notes to Financial Statements (continued)
- -------------------------------------------------------------------
In the event IDSC were to be deemed to be a distributor of the
restricted securities, it is possible that IDSC would be required
to bear the costs of registering those securities under the
Securities Act of 1933, although in most cases such costs would be
borne by the issuer of the restricted securities.
D. IDSC will implement, effective Jan. 1, 1994, Statement of
Financial Accounting Standards No. 115, "Accounting for Certain
Investments in Debt and Equity Securities". Under the new rules,
debt securities that IDSC has both the positive intent and ability
to hold to maturity will be carried at amortized cost. Debt
securities that IDSC does not have the positive intent and ability
to hold to maturity and all marketable equity securities will be
classified as available-for-sale and carried at fair value.
Unrealized gains and losses on securities classified as available-
for-sale will be carried as a separate component of Stockholder's
Equity. The effect of the new rules will be to increase
Stockholder's Equity by approximately $4,304, net of taxes, as of
Jan. 1, 1994. The measurement of unrealized securities gains and
losses in Stockholder's Equity is affected by market conditions,
and therefore, subject to volatility. The new rules will not have a
material impact on IDSC's results of operations.
4. Certificate Reserves
Reserves maintained on outstanding certificates have been computed
in accordance with the provisions of the certificates and Section
28 of the 1940 Act. The average rates of accumulation on
certificate reserves at Dec. 31, 1993 and 1992 were:
<TABLE>
<CAPTION>
1993
------------------------------------
Average Average
Reserve Gross Additiona
Balance Accumulation Credit
at Dec. 31 Rate Rate
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
Installment certificates:
Reserves to mature:
With guaranteed rates..................... $ 57,958 3.49% 1.01%
Without guaranteed rates (A).............. 294,691 - 2.74
Additional credits and accrued interest... 18,555 3.09 -
Advance payments and accrued interest (C). 1,943 3.05 1.45
Other..................................... 54 - -
Fully paid certificates:
Reserves to mature:
With guaranteed rates..................... 291,923 3.30 1.07
Without guaranteed rates (A) and (D)...... 1,951,493 - 3.56
Additional credits and accrued interest... 160,440 3.37 -
Due to unlocated certificate holders...... 394 - -
- ---------------------------------------------------------------------------------------
$2,777,451
- ---------------------------------------------------------------------------------------
</TABLE>
<PAGE>
PAGE 37
Notes to Financial Statements (continued)
- -------------------------------------------------------------------
<TABLE>
<CAPTION>
1992
------------------------------------
Average Average
Reserve Gross Additiona
Balance Accumulation Credit
at Dec. 31 Rate Rate
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
Installment certificates:
Reserves to mature:
With guaranteed rates..................... $ 67,331 3.49% 2.26%
Without guaranteed rates (A).............. 291,014 - 3.26
Additional credits and accrued interest... 18,067 3.07 -
Advance payments and accrued interest (C). 2,277 3.02 2.48
Other..................................... 53 - -
Fully paid certificates:
Reserves to mature:
With guaranteed rates..................... 360,903 3.34 2.19
Without guaranteed rates (A) and (D)...... 2,340,821 - 4.49
Additional credits and accrued interest... 175,651 3.38 -
Due to unlocated certificate holders...... 355 - -
- ---------------------------------------------------------------------------------------
$3,256,472
- ---------------------------------------------------------------------------------------
</TABLE>
A. There is no minimum rate of accrual on these reserves.
Interest is declared periodically, quarterly or annually, in
accordance with the terms of the separate series of certificates.
B. On certain series of single payment certificates, additional
interest is predeclared for periods greater than one year. At Dec.
31, 1993, $2,726 of retained earnings had been appropriated for the
predeclared additional interest, which represents the difference
between certificate reserves on these series, calculated on a
statutory basis, and the reserves maintained per books.
C. Certain series of installment certificates guarantee accrual of
interest on advance payments at an average of 3.05 percent. IDSC
has increased the rate of accrual to 3.51 percent through April 30,
1995. An appropriation of retained earnings amounting to $25 has
been made, which represents the estimated additional accrual that
will result from the increase granted by IDSC.
D. IDS Stock Market Certificate enables the certificate holder to
participate in any relative rise in a major stock market index
without risking loss of principal. Generally the certificate has a
term of 12 months and may continue for up to 14 successive terms.
The reserve balance at Dec. 31, 1993 and 1992 was $402,801 and
$445,021, respectively.
E. The carrying amounts and fair values of certificate reserves
consisted of the following at Dec. 31, 1993 and 1992. Fair values
of certificate reserves with interest rate terms of one year or
less approximated the carrying values less any applicable surrender
charges. The fair values for other certificate reserves is a
discounted cash flow analysis using interest rates currently
offered for certificates with similar remaining terms, less any
applicable surrender charges.<PAGE>
PAGE 38
Notes to Financial Statements (continued)
- -------------------------------------------------------------------
<TABLE>
<CAPTION>
1993
------------------------
Carrying Fair
Amount Value
- -----------------------------------------------------------------------
<S> <C> <C>
Reserves with terms of one year or less.... $2,409,668 $2,402,972
Other...................................... 367,783 384,484
- -----------------------------------------------------------------------
Total certificate reserves................. 2,777,451 2,787,456
Unapplied certificate transactions......... 1,064 1,064
Certificate loans and accrued interest..... (68,174) (68,174)
- -----------------------------------------------------------------------
Total $2,710,341 $2,720,346
- -----------------------------------------------------------------------
1992
------------------------
Carrying Fair
Amount Value
- -----------------------------------------------------------------------
Reserves with terms of one year or less.... $2,939,259 $2,935,204
Other...................................... 317,213 326,646
- -----------------------------------------------------------------------
Total certificate reserves................. 3,256,472 3,261,850
Unapplied certificate transactions......... 1,586 1,586
Certificate loans and accrued interest..... (78,228) (78,228)
- -----------------------------------------------------------------------
Total $3,179,830 $3,185,208
- -----------------------------------------------------------------------
</TABLE>
5. Dividend Restriction
Certain series of installment certificates outstanding provide that
cash dividends may be paid by IDSC only in calendar years for which
additional credits of at least one-half of 1 percent on such series
of certificates have been authorized by IDSC. This restriction has
been removed for 1994 and 1995 by action of IDSC on additional
credits in excess of this requirement.
6. Fees Paid to IDS and Affiliated Companies ($ not in thousands)
A. The basis of computing fees paid or payable to IDS for
investment advisory and services is:
The investment advisory and services agreement with IDS provides
for a graduated scale of fees equal on an annual basis to 0.75
percent on the first $250 million of total book value of assets of
IDSC, 0.65 percent on the next $250 million, 0.55 percent on the
next $250 million, 0.50 percent on the next $250 million and 0.45
percent on the amount in excess of $1 billion. The fee is payable
monthly in an amount equal to one-twelfth of each of the
percentages set forth above. Excluded from assets for purposes of
this computation are first-mortgage loans, real estate and any
other asset on which IDSC pays a service fee.<PAGE>
PAGE 39
Notes to Financial Statements (continued)
- -------------------------------------------------------------------
B. The basis of computing fees paid or payable to IDS Financial
Services Inc. (an affiliate) for distribution services is:
Fees payable to IDS Financial Services Inc. on sales of IDSC's
certificates are based upon terms of agreements giving IDS
Financial Services Inc. the exclusive right to distribute the
certificates covered under the agreements. The agreements provide
for payment of fees over a period of time. The aggregate fees
payable under the agreements per $1,000 face amount of installment
certificates and $1,000 purchase price of single payments, and a
summary of the periods over which the fees are payable, shown by
series are:
<TABLE>
<CAPTION>
Number of
Certificate
Years Over
Aggregate Fees Payable Which
-------------------------- Subsequent
First Subsequent Years' Fees
Total Year Years Are Payable
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Installment certificates(a) $30.00 $ 6.00 $24.00 4
Single-payment certificates 60.00 60.00 - -
Future Value certificates.. 50.00 50.00 - -
- -----------------------------------------------------------------------
</TABLE>
Fees on Cash Reserve and Flexible Savings (formerly Variable Term)
certificates are paid at a rate of 0.25 percent of the purchase
price at time of issuance and 0.25 percent of the reserves
maintained for these certificates at the beginning of the second
and subsequent quarters from issue date.
Fees on the Investors Certificate are paid at an annualized rate of
1 percent of the reserves maintained for the certificates. Fees
are paid at the end of each term on certificates with a one, two or
three-month term. Fees are paid each quarter from date of issuance
on certificates with a six, 12, 24 or 36-month term.
Fees on the Stock Market Certificate are paid at a rate of 1.25
percent of the purchase price on the first day of the certificate's
term and 1.25 percent of the reserves maintained for these
certificates at the beginning of each subsequent term.
(a) At the end of the sixth through the 10th year, an additional
fee is payable of 0.5 percent of the daily average balance of the
certificate reserve maintained during the sixth through the 10th
year, respectively.<PAGE>
PAGE 40
Notes to Financial Statements (continued)
- -------------------------------------------------------------------
C. The basis of computing depositary fees paid or payable to IDS
Bank & Trust (an affiliate) is:
- -------------------------------------------------------------------
Maintenance charge per account..... 5 cents per $1,000 of
assets on deposit
Transaction charge................. $20 per transaction
Security loan activity:
Depositary Trust Company
receive/deliver................ $20 per transaction
Physical receive/deliver......... 25 per transaction
Exchange collateral.............. 15 per transaction
- -----------------------------------------------------------------------
A transaction consists of the receipt or withdrawal of securities
and commercial paper and/or a change in the security position. The
charges are payable quarterly except for maintenance, which is an
annual fee.
D. The basis for computing fees paid or payable to American
Express Service Corporation (an affiliate) in connection with the
American Express Savings certificate was:
Distribution Fees - Fees were paid at a rate of 0.25 percent of the
reserves maintained at the end of the first and subsequent
calendar quarters.
Transfer Agent Fees - Fees of $3.50 per certificate account were
paid each month.
E. The basis for computing fees paid or payable to American
Express Bank Ltd. (an affiliate) for the distribution of the IDS
Special Deposits certificate on an annualized basis is 0.80 percent
of the reserves maintained for the certificates on an amount from
$250,000 to $499,000, 0.65 percent on an amount from $500,000 to
$999,000 and 0.50 percent on an amount $1,000,000 or more. Fees
are paid at the end of each term on certificates with a one, two or
three-month term. Fees are paid at the end of each quarter from
date of issuance on certificates with a six, 12, 24 or 36-month
term.
<PAGE>
PAGE 41
Notes to Financial Statements (continued)
- -------------------------------------------------------------------
7. Income Taxes
Income tax expense (benefit) as shown in the statement of
operations for the three years ended Dec. 31, consists of:
<TABLE>
<CAPTION>
1993 1992 1991
- ----------------------------------------------------------------------
<S> <C> <C> <C>
Federal:
Current............................. $(19,777) $ (1,571) $(19,137)
Deferred............................ 11,446 (13,501) (1,786)
- -----------------------------------------------------------------------
(8,331) (15,072) (20,923)
State............................... 349 7 (16)
- -----------------------------------------------------------------------
$ (7,982) $(15,065) $(20,939)
- -----------------------------------------------------------------------
</TABLE>
Income tax expense (benefit) differs from that computed by using
the U.S. statutory rate of 35 percent for 1993 and 34 percent for
1992 and 1991. The principal causes of the difference in each year
are shown below:
<TABLE>
<CAPTION>
1993 1992 1991
- -----------------------------------------------------------------------
<S> <C> <C> <C>
Federal tax expense (benefit) at
U.S. statutory rate............... $ 13,178 $ 12,579 $ 9,857
Tax-exempt interest................. (4,929) (6,212) (9,340)
Dividend exclusion.................. (17,326) (22,317) (20,964)
Change in statutory rates........... (406) - -
Other, net.......................... 1,152 878 (476)
- -----------------------------------------------------------------------
Federal tax benefit $ (8,331) $(15,072) $(20,923)
- -----------------------------------------------------------------------
</TABLE>
Deferred income taxes result from the net tax effects of temporary
differences. Temporary differences are differences between the tax
bases of assets and liabilities and their reported amounts in the
financial statements that will result in differences between income
for tax purposes and income for financial statement purposes in
future years. Principal components of IDSC's deferred tax assets
and liabilities as of Dec. 31, are as follows:
<TABLE>
<CAPTION>
1993 1992
- -----------------------------------------------------------------------
<S> <C> <C>
Deferred tax assets:
Certificate reserves................ $ 6,127 $ 8,351
Investments......................... 1,225 6,095
Investment reserves................. 1,487 5,654
Purchased/written call options...... - 273
- -----------------------------------------------------------------------
Total deferred tax assets 8,839 20,373
- -----------------------------------------------------------------------
Deferred tax liabilities:
Deferred distribution fees.......... 6,865 7,327
Dividends receivable................ 1,255 1,586
Return of capital dividends......... 463 46
Purchased/written call options...... 254 -
Other, net.......................... 167 133
- -----------------------------------------------------------------------
Total deferred tax liabilities 9,004 9,092
- -----------------------------------------------------------------------
Net deferred tax assets (liabilities) $ (165) $11,281
- -----------------------------------------------------------------------
/TABLE
<PAGE>
PAGE 42
Notes to Financial Statements (continued)
- -------------------------------------------------------------------
8. Interest-Rate Caps
IDSC owns interest-rate caps with a notional amount of $1,170,000
and $900,000 at Dec. 31, 1993 and 1992, respectively. These caps
are quarterly reset caps and IDSC is to be reimbursed on the
notional amount to the extent the London Interbank Offering Rate
exceeds the reference rates specified in the cap agreements. These
reference rates range from 4 percent to 13 percent. The cost of
these caps is being amortized over the terms of the agreements
(three to seven years) on a straight line basis and is included in
other qualified assets.
The carrying amounts and fair values of interest rate caps
consisted of the following at Dec. 31, 1993 and 1992. Fair values
are determined using the procedures and factors described in
paragraph A of note 3.
<TABLE>
<CAPTION>
1993 1992
--------- ---------
<S> <C> <C>
Carrying amount.................. $24,809 $26,551
Fair value....................... 6,916 13,480
</TABLE>
9. Options
IDSC offers a series of certificates which pay interest based upon
the relative change in a major stock market index between the
beginning and end of the certificates' term. The certificate
holders have the option of participating in the full amount of
increase in the index during the term (subject to a specified
maximum) or a lesser percentage of the increase plus a guaranteed
minimum rate of interest. As a means of hedging its obligations
under the provisions of these certificates, IDSC purchases and
writes call options on the major market index. The options are
cash settlement options, that is, there is no underlying security
to deliver at the time the contract is closed out. There is the
risk that the counterparties to the purchased call option contracts
may be unable to fulfill their obligations. IDSC employs policies
and procedures to ensure the adequacy of the creditworthiness of
counterparties. Following is a summary of open option contracts at
Dec. 31, 1993 and 1992.
<PAGE>
PAGE 43
Notes to Financial Statements (continued)
- -------------------------------------------------------------------
<TABLE>
<CAPTION>
1993
---------------------------------------------
Face Average Index at
Amount Strike Price Dec. 31, 1993
- -----------------------------------------------------------------------
<S> <C> <C> <C>
Purchased call options $221,389 452 466
Written call options 207,540 497 466
- -----------------------------------------------------------------------
1992
---------------------------------------------
Face Average Index at
Amount Strike Price Dec. 31, 1992
- -----------------------------------------------------------------------
Purchased call options $185,387 417 436
Written call options 123,147 484 436
- -----------------------------------------------------------------------
</TABLE>
The option contracts are less than one year in term and are carried
at the aggregate of the amortized cost and underlying intrinsic
value of the contracts. These carrying amounts may be different
than fair value depending on market conditions and other factors.
The amortization of the cost of purchased and the proceeds of
written call options is included net in investment expenses and the
changes in the intrinsic value of the contracts are included net in
provision for certificate reserves, in the statement of operations.
The purchased options are included in other qualified assets and
the written options are included in other liabilities.
The carrying amounts and fair values of options consisted of the
following at Dec. 31, 1993 and 1992. Fair values are determined
using the procedures and factors described in paragraph A of note
3.
<TABLE>
<CAPTION>
1993 1992
----------------- -----------------
Carrying Fair Carrying Fair
Amount Value Amount Value
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchased call options.......... $13,615 $14,509 $14,239 $13,571
Written call options............ 1,640 2,992 881 1,157
- -----------------------------------------------------------------------
</TABLE>
<PAGE>
PAGE 44 SCHEDULE I
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY
Investments in Securities of Unaffiliated Issuers
DECEMBER 31, 1993
($ in thousands)
Bal. Held
at 12-31-93
Principal
Amount of Cost Value at
Bonds (Notes 12-31-93
Name of Issuer and Title of Issue and Notes a & c) (Note a)
- --------------------------------- ------------ ---------- ----------
<S> <C> <C> <C>
BONDS AND NOTES
United States Government -
direct obligations
US TREASURY 7.625%, 1996 $ 250 $ 250 $ 268
US TREASURY NOTE 8.500%, 1995 165 171 175
------------ ---------- ----------
415 421 443
------------ ---------- ----------
Other Bonds and Notes
United states Government Agencies
FHLMC GOLD E00151 7.500%, 2017 16,166 16,589 16,788
FHLMC GOLD 15 YR#228 6.500%, 2008 18,967 19,402 19,245
FHLMC GOLD E00241 6.000%, 2008 24,748 25,077 24,624
FHLMC 188537 (2) 5.750%, 1998 39 36 39
FHLMC CTF SER B-76 8.375%, 2006 390 390 400
FHLMC CTF SER A-77 8.050%, 2007 238 238 243
FHLMC CTF SER B-77 8.125%, 2007 390 388 398
FHLMC 15YR #380025 9.500%, 2003 2,199 2,186 2,320
FHLMC 15 YR #200017 11.000%, 2000 1,464 1,495 1,585
FHLMC 15 YR #200018 11.000%, 2000 1,039 1,062 1,125
FHLMC 15 YR #200020 11.000%, 2000 1,523 1,556 1,649
FHLMC 15 YR #200022 10.500%, 2000 308 313 332
FHLMC 15 YR #200035 9.000%, 2001 1,224 1,208 1,287
FHLMC 15 YR #200048 9.000%, 2001 2,465 2,425 2,592
FHLMC 15 YR #200064 8.000%, 2002 1,379 1,332 1,430
FHLMC 15 YR #212119 9.500%, 2001 737 742 778
FHLMC 15 YR #218648 9.500%, 2002 209 211 221
FHLMC 15 YR #219392 11.000%, 2001 563 577 610
FHLMC 15 YR #219679 9.500%, 2003 1,912 1,898 2,017
FHLMC 15 YR #219757 11.000%, 2003 6,458 6,664 6,993
FHLMC 15 YR #240001 9.500%, 1997 19,490 19,379 20,465
FHLMC 10 YR #490009 9.000%, 1997 3,987 3,983 4,161
FHLMC 10 YR #490011 10.000%, 1997 893 907 949
FHLMC 15 YR #500155 11.000%, 2001 1,061 1,083 1,148
FHLMC 15 YR #500294 11.000%, 2003 666 684 721
FHLMC 15 YR #500456 11.000%, 2002 777 796 841
FHLMC 15 YR #502175 10.500%, 2004 933 945 1,006
FHLMC ARM #605041 5.598%, 2019 1,310 1,310 1,356
FHLMC ARM #605048 5.344%, 2018 2,176 2,176 2,244
</TABLE>
<PAGE>
PAGE 45
<TABLE>
<CAPTION>
Bal. Held
at 12-31-93
Principal
Amount of Cost Value at
Bonds (Notes 12-31-93
Name of Issuer and Title of Issue and Notes a & c) (Note a)
- --------------------------------- ------------ ---------- ----------
<S> <C> <C> <C>
FHLMC ARM #605050 5.705%, 2018 1,555 1,555 1,609
FHLMC ARM 605079 WAC 5.674%, 2018 2,471 2,471 2,555
FHLMC ARM 605175 WAC 5.758%, 2019 5,125 5,125 5,304
FHLMC ARM #605352 5.453%, 2018 5,396 5,396 5,573
FHLMC ARM #401587 5.250%, 2018 4,335 4,351 4,468
FHLMC ARM #630048 6.875%, 2018 786 786 806
FHLMC ARM #630074 7.250%, 2018 1,361 1,361 1,382
FHLMC ARM 840031 WAC 5.400%, 2019 1,123 1,122 1,167
FHLMC ARM #840035 5.627%, 2019 2,205 2,204 2,309
FHLMC ARM #840036 5.563%, 2019 3,605 3,605 3,777
FHLMC ARM #840045 5.774%, 2019 5,586 5,586 5,838
FHLMC ARM #840072 5.405%, 2019 5,032 5,032 5,208
FHLMC ARM #405014 5.596%, 2019 2,006 2,006 2,075
FHLMC ARM #405092 5.505%, 2019 3,442 3,442 3,560
FHLMC ARM #405185 5.600%, 2018 3,837 3,837 3,969
FHLMC ARM #405243 5.601%, 2019 2,486 2,486 2,572
FHLMC ARM #405249 5.500%, 2018 4,894 4,894 5,062
FHLMC ARM #405360 5.717%, 2019 1,483 1,483 1,535
FHLMC ARM #405437 5.590%, 2019 674 674 698
FHLMC ARM #405455 5.596%, 2019 2,499 2,499 2,585
FHLMC ARM #405517 5.669%, 2019 929 929 962
FHLMC ARM #405615 5.487%, 2019 1,728 1,728 1,787
FHLMC ARM #405675 5.550%, 2020 3,765 3,764 3,897
FHLMC ARM #405692 5.527%, 2020 5,181 5,181 5,363
FHLMC ARM #405744 5.557%, 2020 3,865 3,865 4,000
FHLMC ARM #605432 5.353%, 2017 1,538 1,538 1,587
FHLMC ARM #605433 5.525%, 2017 3,354 3,354 3,467
FHLMC ARM #605454 5.018%, 2017 6,897 6,897 7,095
FHLMC ARM 605853 WAC 5.508%, 2019 6,942 6,942 7,178
FHLMC ARM #605854 5.713%, 2019 5,027 5,027 5,204
FHLMC ARM #606024 5.109%, 2019 2,495 2,495 2,569
FHLMC ARM #606025 5.033%, 2019 8,895 8,895 9,157
FHLMC ARM #606151 5.755%, 2019 6,790 6,790 7,030
FHLMC ARM #635054 6.717%, 2020 664 664 683
FHLMC ARM #865008 8.331%, 2018 12,806 12,806 13,382
FHLMC LOANS #885005 9.500%, 2002 3,218 3,198 3,450
FHLMC LOANS #885008 10.000%, 2003 5,211 5,236 5,689
FHLMC 15 YR #885009 9.500%, 2003 8,925 8,881 9,566
FHLMC ARM #606301 5.969%, 2020 9,509 9,509 9,874
FHLMC 15 YR #E40290 8.500%, 2007 12,396 13,076 12,985
FHLMC GOLD #49475 6.500%, 2008 19,808 20,269 20,099
*CMO TR14-A1 FLOATER 3.700%, 2009 1,751 1,745 1,753
*CMO TR14-A2 FLOATER 18.000%, 2009 584 474 612
*MDC 3 CL A FLOATER 3.888%, 2003 1,861 1,855 1,862
*MDC 3 CL Q INV FLTR 19.288%, 2003 465 361 507
PRU HOME 1990-9 A1 9.500%, 1997 3,446 3,432 3,504
SBH CAP SRS 85-3 CLC 8.625%, 1995 2,284 2,277 2,284
</TABLE>
<PAGE>
PAGE 46
<TABLE>
<CAPTION>
Bal. Held
at 12-31-93
Principal
Amount of Cost Value at
Bonds (Notes 12-31-93
Name of Issuer and Title of Issue and Notes a & c) (Note a)
- --------------------------------- ------------ ---------- ----------
<S> <C> <C> <C>
FNMA 1991 19 CL E 7.500%, 2017 29,499 29,433 29,819
FNMA 1991 48 G 7.800%, 2004 22,087 22,064 22,616
FNMA 1991 50 G 7.750%, 2004 10,000 9,953 10,261
FNMA 1991 132 CL E 8.000%, 2010 21,600 21,547 22,172
FNMA 92 12 H 6.625%, 2019 24,000 24,000 24,464
FNMA 92 174 D TAC 6.625%, 2017 41,213 41,179 41,852
FNMA 15 YR #2469 11.000%, 2000 77 79 84
FNMA 15 YR #13157 11.000%, 2000 122 124 133
FNMA 15 YR #13548 11.000%, 2000 190 194 206
FNMA 15 YR #13705 11.000%, 2000 195 199 212
FNMA 15 YR #18275 11.000%, 2000 15 15 16
FNMA 15 YR #18745 11.000%, 2000 50 52 55
FNMA 15 YR #18986 11.000%, 2000 46 48 51
FNMA 15 YR #19070 11.000%, 2000 30 31 33
FNMA 15 YR #19261 11.000%, 2000 238 243 259
FNMA 15 YR #22271 11.000%, 2000 93 95 101
FNMA 15 YR #22405 11.000%, 2000 218 223 238
FNMA 15 YR #22569 11.000%, 2000 334 342 364
FNMA 15 YR #22674 11.000%, 2000 108 110 117
FNMA 15 YR #25899 11.000%, 2001 69 71 75
FNMA 30 YR #27880 9.000%, 2016 229 234 244
FNMA 15 YR #34543 9.250%, 2001 1,148 1,146 1,233
FNMA 30 YR #36225 9.000%, 2016 616 626 656
FNMA 30 YR #040877 9.000%, 2017 591 605 630
FNMA 15 YR #50682 7.000%, 2008 17,796 18,293 18,291
FNMA 15 YR #50730 6.500%, 2008 23,858 24,146 24,149
FNMA 30 YR #51617 10.000%, 2017 592 597 652
FNMA 30 YR #52185 10.000%, 2017 490 495 540
FNMA 30 YR #52596 10.000%, 2017 47 48 52
FNMA 15 YR #58405 11.000%, 2003 107 110 117
FNMA 15 YR #64520 11.000%, 2001 153 157 167
FNMA 15 YR #64523 11.000%, 2000 405 414 441
FNMA 15 YR #66458 10.000%, 2004 9,750 9,843 10,490
FNMA ARM #70007 MEGA 5.316%, 2017 3,929 3,929 4,066
FNMA ARM #70009 MEGA 5.240%, 2018 6,566 6,565 6,791
FNMA ARM #70117 5.258%, 2017 1,525 1,525 1,577
FNMA ARM #70202 5.782%, 2019 4,610 4,610 4,793
FNMA 15 YR #70299 10.750%, 2001 1,141 1,182 1,238
FNMA 15 YR 70694 MEG 9.500%, 2005 6,885 6,931 7,322
FNMA ARM #79384 5.665%, 2019 1,270 1,271 1,320
FNMA ARM #88879 8.149%, 2019 8,526 8,526 8,675
FNMA ARM #92069 FLEX 5.525%, 2018 5,847 5,847 6,069
FNMA ARM #93787 5.572%, 2019 5,626 5,626 5,843
FNMA ARM #97822 5.534%, 2020 1,341 1,341 1,393
FNMA ARM #105989 7.977%, 2020 3,260 3,319 3,416
FNMA 15YR 124824 MEG 7.000%, 2008 18,051 18,627 18,554
FNMA 15 YR #125136 8.000%, 2007 22,546 23,799 23,532
</TABLE>
<PAGE>
PAGE 47
<TABLE>
<CAPTION>
Bal. Held
at 12-31-93
Principal
Amount of Cost Value at
Bonds (Notes 12-31-93
Name of Issuer and Title of Issue and Notes a & c) (Note a)
- --------------------------------- ------------ ---------- ----------
<S> <C> <C> <C>
FNMA 15 YR #125164 7.000%, 2008 29,186 30,028 29,998
FNMA 15YR #190139 5.500%, 2008 24,882 24,512 24,152
FNMA 15 YR #248519 6.000%, 2008 25,152 25,253 24,987
FNMA 15 YR#190082 5.500%, 2008 25,040 24,851 24,305
GNMA ARM 1 YR #8157 5.500%, 2023 9,649 9,826 9,948
GNMA ARM #8206 6.750%, 2017 2,264 2,264 2,372
GNMA ARM #8240 6.000%, 2017 1,666 1,637 1,721
GNMA ARM #8251 6.375%, 2017 137 137 143
GNMA ARM #8274 6.750%, 2017 4,440 4,426 4,651
GNMA ARM #8283 6.750%, 2017 572 567 599
GNMA ARM #8293 6.750%, 2017 1,061 1,055 1,111
GNMA ARM #8341 6.500%, 2018 256 254 268
GNMA ARM #8353 6.500%, 2018 2,055 2,038 2,154
GNMA ARM #8365 6.500%, 2018 3,942 3,941 4,133
GNMA ARM #8377 6.375%, 2018 1,584 1,576 1,650
GNMA ARM #8428 6.750%, 2018 693 693 727
GNMA ARM #8440 6.750%, 2018 1,642 1,642 1,723
GNMA PL 2480 5.250%, 1997 52 50 52
------------ ---------- ----------
745,308 750,719 765,238
------------ ---------- ----------
Municipal Bonds
Alabama
AL CORRECTIONS INST 7.300%, 1999 1,500 1,497 1,645 (b)
AL CORRECTIONS INST 7.400%, 2000 1,500 1,497 1,648 (b)
Alaska
ANCHORAGE AK WTR RV 7.100%, 2000 785 782 860 (b)
California
SOUTHERN CA PUB PWR 6.900%, 1999 1,000 988 1,089 (b)
SOUTHERN CA PUB PWR 7.000%, 2000 1,215 1,199 1,322 (b)
Colorado
CHERRY CREEK CO SCH 7.900%, 1997 1,000 1,000 1,090 (b)
CHERRY CREEK CO SCH 8.000%, 1998 3,375 3,375 3,685 (b)
CHERRY CREEK CO SCH 8.100%, 1999 1,700 1,701 1,859 (b)
Delaware
NEW CASTLE CNTY DE 8.100%, 1999 2,000 2,000 2,210 (b)
Florida
FLORIDA STATE COMMUN 13.500%, 2013 3,000 3,246 3,381 (b)
FLORIDA MUNI POWER 7.200%, 2000 3,450 3,423 3,847 (b)
JACKSONVILLE FL ELEC 8.000%, 1996 300 300 330 (b)
JACKSONVILLE FL ELEC 8.100%, 1997 1,000 1,000 1,096 (b)
</TABLE>
<PAGE>
PAGE 48
<TABLE>
<CAPTION>
Bal. Held
at 12-31-93
Principal
Amount of Cost Value at
Bonds (Notes 12-31-93
Name of Issuer and Title of Issue and Notes a & c) (Note a)
- --------------------------------- ------------ ---------- ----------
<S> <C> <C> <C>
JACKSONVILLE FL ELEC 8.250%, 1998 1,700 1,700 1,862 (b)
ORLANDO FL UTL 10-94 10.500%, 2014 4,000 4,201 4,358 (b)
ORLANDO FL EXPWY REV 8.200%, 1997 1,785 1,796 1,874 (b)
ORLANDO FL EXPWY REV 8.200%, 1998 1,925 1,932 2,021 (b)
Georgia
ATLANTA GA REC AUTH 8.000%, 1997 1,000 998 1,055 (b)
MUNI ELEC AUTH GA 8.000%, 1994 1,000 1,000 1,000 (b)
MUNI ELEC AUTH GA 7.500%, 1999 1,000 1,000 1,096 (b)
MUNI ELEC AUTH GA 7.600%, 2000 1,000 1,000 1,096 (b)
MUNI ELEC AUTH GA 7.700%, 2001 1,330 1,324 1,460 (b)
MET ATLANTA GA RTA 8.000%, 1996 2,000 1,997 2,163 (b)
MET ATLANTA GA RTA 8.200%, 1997 2,800 2,794 3,060 (b)
MET ATLANTA GA RTA 8.375%, 1998 2,000 1,995 2,191 (b)
Illinois
CHICAGO IL SAN DIST 9.250%, 2000 1,000 1,109 1,253 (b)
*CHIC IL GAS SPY SRC 7.500%, 2015 4,500 4,500 5,133 (b)
CHICAGO IL O'HARE 8.050%, 1996 1,000 1,000 1,020 (b)
CHICAGO IL O'HARE 8.150%, 1997 1,000 1,000 1,020 (b)
CHICAGO IL O'HARE 8.250%, 1998 2,000 2,000 2,040 (b)
CHICAGO IL BLDG REV 8.000%, 1997 3,000 2,989 3,354 (b)
CHICAGO IL BLDG COMM 8.000%, 1998 1,800 1,786 2,057 (b)
ROSEMOUNT IL GO BNDS 8.300%, 1997 1,520 1,516 1,679 (b)
ROSEMOUNT IL GO BNDS 8.400%, 1998 1,000 997 1,101 (b)
Indiana
INDIANAPOLIS IN ARPT 7.900%, 1995 635 635 676 (b)
INDIANAPOLIS IN ARPT 8.100%, 1996 375 375 413 (b)
INDIANAPOLIS IN ARPT 8.300%, 1997 1,100 1,100 1,231 (b)
INDIANAPOLIS IN ARPT 8.500%, 1998 750 750 837 (b)
INDIANAPOLIS IN REV 7.600%, 1999 1,000 997 1,101 (b)
INDIANAPOLIS IN REV 7.700%, 2000 1,000 997 1,110 (b)
Louisiana
LAFAYETTE LA PUB 1MP 7.300%, 1999 975 975 1,062 (b)
LOUISIANA GO BONDS 7.375%, 2000 4,900 4,883 5,414 (b)
LOUISIANA CORREC FAC 7.300%, 1999 925 927 1,018 (b)
LOUISIANA CORREC FAC 7.400%, 2000 500 501 551 (b)
Michigan
DETROIT MI CONV FAC 8.300%, 1998 4,900 4,888 5,258 (b)
Minnesota
MPLS MN TAX INCR BDS 7.800%, 2000 900 898 936 (b)
MPLS MN TAX INCR BDS 7.500%, 1997 500 499 523 (b)
MPLS MN TAX INCR BDS 7.600%, 1998 1,600 1,597 1,674 (b)
</TABLE>
<PAGE>
PAGE 49
<TABLE>
<CAPTION>
Bal. Held
at 12-31-93
Principal
Amount of Cost Value at
Bonds (Notes 12-31-93
Name of Issuer and Title of Issue and Notes a & c) (Note a)
- -------------------------------- ------------ ---------- ----------
<S> <C> <C> <C>
MPLS MN TAX INCR BDS 7.700%, 1999 1,800 1,797 1,886 (b)
UNIV OF MINN REV REF 8.750%, 1995 1,000 1,006 1,068 (b)
WEST MN MUNI POWER 10.250%, 2015 3,120 3,534 3,980 (b)
New Jersey
OCEAN COUNTY NJ UTIL 8.150%, 1997 400 399 452 (b)
OCEAN COUNTY NJ UTIL 8.250%, 1998 500 499 556 (b)
OCEAN COUNTY NJ UTIL 8.300%, 1999 4,000 3,990 4,456 (b)
New York
N Y MUNI ASSIS CORP 7.000%, 2000 2,100 2,057 2,311 (b)
NEW YORK CITY GO 9.750%, 1996 8,000 7,982 8,849 (b)
NEW YORK CITY NT GO 7.750%, 2000 1,700 1,700 1,816 (b)
NEW YORK PWER AUTH 9.500%, 2001 690 718 817 (b)
North Carolina
NC EAST MUNI POWER 7.500%, 2000 3,245 3,199 3,574 (b)
NC MUNI POWER 10.375%, 2004 1,150 1,184 1,185 (b)
NC MUNI POWER 10.625%, 2020 2,500 2,575 2,575 (b)
NC MUNI POWER 8.300%, 1996 900 900 978 (b)
NC MUNI POWER 8.400%, 1997 2,000 2,000 2,220 (b)
NC MUNI POWER 8.500%, 1998 2,000 2,000 2,231 (b)
Pennsylvania
WY VALLEY PA SWR 5.125%, 2007 160 160 164 (b)
South Carolina
PIEDMONT SC MUNI PWR 11.000%, 2025 3,540 3,760 3,944 (b)
Tennessee
KNOXVILLE TN GO BNDS 7.150%, 2000 3,490 3,480 3,837 (b)
NASHVILLE CTY TN SE 7.800%, 1996 835 835 905 (b)
NASHVILLE CTY TN SE 7.900%, 1997 710 710 786 (b)
NASHVILLE CTY TN SE 8.000%, 1998 1,000 1,000 1,109 (b)
Texas
AUSTIN TX UTILITY 10.750%, 2015 3,735 4,413 5,087 (b)
DALLAS TX CIVIC CENT 10.900%, 1996 850 894 965 (b)
DALLAS TX CIVIC CENT 8.100%, 1997 925 924 1,007 (b)
DALLAS TX CIVIC CENT 8.200%, 1998 1,025 1,023 1,113 (b)
EANES TX ISD TAX REF 9.000%, 1999 3,000 3,026 3,263 (b)
HARRIS CNTY TX TOLL 10.375%, 2014 5,300 5,834 6,561 (b)
HARRIS COUNTY TX GO 9.100%, 1999 3,500 3,554 3,853 (b)
LWR CO RIVER TX ELEC 11.375%, 2013 3,500 3,605 3,605 (b)
PLANO TX ISD TAX REF 9.200%, 1996 1,000 1,013 1,064 (b)
SAN ANTONIO TX SEWER 9.600%, 1997 1,000 1,024 1,045 (b)
WACO TX WTR & SEWER 8.300%, 1995 1,000 1,003 1,082 (b)
</TABLE>
<PAGE>
PAGE 50
<TABLE>
<CAPTION>
Bal. Held
at 12-31-93
Principal
Amount of Cost Value at
Bonds (Notes 12-31-93
Name of Issuer and Title of Issue and Notes a & c) (Note a)
- --------------------------------- ------------ ---------- ----------
<S> <C> <C> <C>
Utah
INTERMOUNTAIN PWR UT 11.000%, 2022 4,000 4,120 4,120 (b)
District of Columbia
DIST OF COLUMBIA GO 7.600%, 1997 4,900 4,888 5,340 (b)
DIST OF COLUMBIA GO 7.300%, 1995 2,100 2,107 2,213 (b)
DIST OF COLUMBIA GO 7.600%, 1997 1,950 1,997 2,150 (b)
DIST OF COLUMBIA GO 7.750%, 2000 1,000 1,003 1,116 (b)
Washington
KENT SCH DIST 415 WA 7.100%, 1997 1,320 1,317 1,453 (b)
KENT SCH DIST 415 WA 7.200%, 1998 1,620 1,616 1,788 (b)
PIERCE CTY WA SE REV 8.000%, 1996 3,035 3,035 3,306 (b)
PORT OF SEATTLE WA 8.250%, 1998 2,000 1,996 2,198 (b)
PORT OF SEATTLE WA 8.250%, 1999 2,000 1,995 2,221 (b)
REDMOND WA GO BDS 7.300%, 1999 1,210 1,207 1,303 (b)
REDMOND WA GO BDS 7.400%, 2000 650 648 701 (b)
VANCOUVER WA SE REV 8.800%, 1995 1,000 1,003 1,069 (b)
------------ ---------- ----------
Total Municipal Bonds 176,705 179,394 195,081
============ ---------- ----------
Public Utility
BAROID CORP 8.000%, 2003 5,000 4,982 5,462
BOSTON EDISON 8.875%, 1995 10,000 9,983 10,738
CABOT 9.875%, 1994 2,000 2,006 2,090
CHEVRON-HOWARD BELL 7.700%, 1997 477 473 483 (b)(d)
HANNA M A 9.000%, 1998 5,000 5,140 5,550
INTL SPECIALTY PROD 9.000%, 1999 15,000 15,486 15,769
ORYX ENERGY 8.650%, 1999 15,000 15,000 15,558
PDV AMERICA 7.250%, 1998 3,000 2,988 3,030
PDV AMERICA 7.750%, 2000 7,000 7,025 7,105
PENNSYLVANIA P & L 8.000%, 1996 544 542 568 (b)(d)
PENN POWER CO 9.000%, 1996 5,000 4,991 5,475
TENNECO INC 9.625%, 1994 8,500 8,500 8,872
PETRO MEXICANOS 144A 11.430%, 1995 10,000 10,000 11,140 (b)(d)
------------ ---------- ----------
Total Public Utility 86,521 87,116 91,840
============ ---------- ----------
Finance
AMERICAN GEN FIN COR 9.400%, 1995 10,000 10,000 10,504 (b)(d)
AMERICAN GEN FIN 9.600%, 1995 10,000 9,988 10,887
ARISTAR FINL 7.875%, 1999 3,000 2,994 3,236
BANK OF AMERICA 9.750%, 2000 10,000 10,625 11,850
CHASE 90-F CL A-6 9.500%, 2006 2,247 2,245 2,355
</TABLE>
<PAGE>
PAGE 51
<TABLE>
<CAPTION>
Bal. Held
at 12-31-93
Principal
Amount of Cost Value at
Bonds (Notes 12-31-93
Name of Issuer and Title of Issue and Notes a & c) (Note a)
- --------------------------------- ------------ ---------- ----------
<S> <C> <C> <C>
COUNTRYWIDE FUNDING 8.420%, 1999 19,700 19,662 21,498
FIDELITY ACCEPTANCE 6.670%, 1997 15,000 15,000 15,260 (b)(d)
1ST NATL BK ST PAUL 12.650%, 1994 6,415 6,592 6,919
FLEET FINANCIAL CORP 9.800%, 1995 15,000 15,000 16,209 (b)(d)
FLEET NORTHSTAR FINL 10.150%, 1995 15,000 15,000 16,275
HELLER FINANCIAL 8.000%, 1998 15,000 14,963 16,387
HOUSEHOLD FINANCE 9.910%, 1996 5,000 5,000 5,481
HOUSEHOLD FINANCE 9.250%, 1995 6,500 6,476 6,727
HOUSEHOLD FINANCE 9.000%, 1995 7,000 6,931 7,481
ITT FINANCIAL 11.000%, 1995 9,950 10,162 10,995
MARGARETTEN FIN'L 6.750%, 2000 11,250 11,380 11,573
NCB CAPITAL SER A 8.180%, 1997 8,000 8,000 8,558 (b)(d)
NAVISTAR FINL CORP 9.750%, 1995 8,500 8,476 8,968
ORIX CREDIT ALLIANCE 8.040%, 1997 10,000 10,000 10,542 (b)(d)
SBH MTG 91-1 VII 9.000%, 2006 4,416 4,416 4,460
SALOMON INC INDEX AM 7.070%, 2000 25,000 25,000 25,813
TRANSAMERICA FINANCE 9.260%, 1998 5,000 4,988 5,663
TRAVELERS MTG 90-09 9.000%, 2005 6,173 6,140 6,308
USL CAPITAL 9.400%, 1996 15,000 14,990 16,294
FIRST BANK SYS FRN 5.250%, 1996 15,000 13,895 14,985
------------ ---------- ----------
Total Finance Bonds 258,151 257,923 275,228
============ ---------- ----------
Industrial
DENMARK KNGM FRN 10% 10.000%, 1995 10,000 10,172 11,268
BROWN GROUP 8.600%, 1999 5,000 5,000 5,430
CSX 9.230%, 1998 13,500 13,500 15,255
CENTEX CORP 9.050%, 1996 10,000 10,000 10,575
CHAMPION INT'L 9.650%, 1995 10,000 10,000 10,762
CHAMPION INTL # 9.800%, 1998 10,000 9,992 11,363
COMDISCO 9.070%, 1994 10,000 10,000 10,962
CONTAINER CORP AMERI 14.000%, 2001 5,000 5,000 5,575
DARLING DELAWARE 14% 0.000%, 1999 5,000 4,893 3,450 (e)
DART KRAFT FIN 7.750%, 1998 1,000 1,046 1,084
DELTA AIRLINES # 9.875%, 1998 8,100 8,100 8,657
DURR FILLAUER 7.000%, 2006 20,000 20,089 20,006
FIBERGLASS CANDA INC 9.800%, 1998 5,000 5,177 5,794
FIGGIE INT'L # 9.875%, 1999 6,500 7,238 7,459
FLEMING CO 9.450%, 1995 15,000 14,990 15,956
FORT HOWARD LIBOR D 6.875%, 2000 10,000 10,000 9,800 (b)(d)
FOUNDATION HLTH CORP 7.750%, 2003 4,500 4,482 4,573
GEN AMER TRANS TR#15 9.200%, 1994 10,000 10,000 10,262
GMAC 7.650%, 1997 10,000 9,973 10,588
GMAC 7.750%, 1999 20,000 19,807 21,125
GRT NORTHERN NEKOOSA 9.000%, 1994 5,000 5,000 5,012
HERTZ CORP 9.770%, 1996 10,000 9,995 10,887
</TABLE>
<PAGE>
PAGE 52
<TABLE>
<CAPTION>
Bal. Held
at 12-31-93
Principal
Amount of Cost Value at
Bonds (Notes 12-31-93
Name of Issuer and Title of Issue and Notes a & c) (Note a)
- --------------------------------- ------------ ---------- ----------
<S> <C> <C> <C>
HERTZ CORP 9.750%, 1996 5,000 4,994 5,438
INTL LEASE FINANCE 7.950%, 1999 12,000 11,978 12,990
KROGER 11.125%, 1998 5,500 5,500 5,885
LONE STAR 8.75 0.000%, 1994 5,000 5,000 4,600 (b)(d)(e)
MATTEL INC 6.875%, 1997 15,000 14,920 15,394
MISSOURRI PACIFIC RR 15.000%, 1995 463 493 513 (b)(d)
NEWS AMERICA HLDGS 7.500%, 2000 10,000 9,939 10,425
REYNOLDS METALS 9.750%, 1996 10,000 9,986 11,125
RYDER SYSTEM 8.950%, 1994 5,000 5,000 5,138
SEALED AIR 12.625%, 1999 1,400 1,446 1,505
SEALY CORP 9.500%, 2003 4,275 4,326 4,467
SUN AMERICA 9.000%, 1999 20,000 20,000 22,525
TIME WARNER INC 7.450%, 1998 10,000 10,211 10,488
TIPHOOK FINANCE 7.125%, 1998 7,700 7,637 6,314
TRANSAMERICA CORP 9.470%, 1995 15,000 14,990 16,275
VF CORP 9.400%, 1996 7,125 7,022 7,392
WAXMAN IND LIBOR 6.500%, 1998 7,500 7,400 7,500 (b)(d)
BROWNING FERRIS CVT 6.750%, 2005 7,345 6,152 7,418
CHRYSLER FIN PUT/91 13.250%, 1994 7,600 7,685 8,028
------------ ---------- ----------
Total Industial Bonds 359,508 359,133 379,263
============ ---------- ----------
Total Other Bonds and Notes 1,634,285 1,706,650
---------- ----------
Total Bonds and Notes 1,634,706 1,707,093
---------- ----------
Bal. Held
at 12-31-93 Cost Value at
Number of (Notes 12-31-93
Shares a & c) (Note a)
------------ ---------- ----------
PREFERRED STOCK
Public Utility
ANR PIPE $2.675 25 10.700%, 2000 23,125 586 595
ANR PIPELINE $25 8.480%, 2001 171,077 4,301 4,320
AMERICAN WTRWRKS $25 8.500%, 2000 800,000 20,000 21,800 (b)(d)
ARIZONA PUB SVC $100 10.000%, 2001 50,000 5,000 5,987
ARIZONA $100 8.480%, 1997 45,000 4,449 4,612
ARIZONA PUB SVC $100 8.800%, 2000 20,309 2,021 2,056
ARIZONA PUB SERVICE 8.500%, 1994 50,000 5,000 5,050 (b)(d)
ARKANSAS P & L $25 9.920%, 2002 233,000 6,138 6,352
ATLANTIC CITY EL 100 7.800%, 2006 90,000 8,985 9,675
ATLANTIC CITY EL 100 8.200%, 2000 82,500 8,237 9,127
</TABLE>
<PAGE>
PAGE 53
<TABLE>
<CAPTION>
Bal. Held
at 12-31-93 Cost Value at
Number of (Notes 12-31-93
Name of Issuer and Title of Issue Shares a & c) (Note a)
- --------------------------------- ------------ ---------- ----------
<S> <C> <C> <C>
ATLANTIC CITY ELEC 8.530%, 1998 101,600 10,155 10,947
BALTIMORE G&E $100 8.625%, 2000 97,500 9,750 10,920
BALTIMORE G&E $100 8.250%, 1999 66,300 6,629 7,243
BALTIMORE G & E $100 6.950%, 1995 70,000 6,960 7,359
BOSTON EDISON $100 8.000%, 2001 90,000 9,000 9,990
CENTRAL ILL LT $100 5.850%, 2008 50,000 5,000 4,975
CINCINNATI G&E $100 7.875%, 2004 200,000 20,000 22,500
COMMWLTH ED $100 PVT 8.200%, 2002 94,605 9,173 9,744 (b)(d)
COMMONWEALTH EDISON 8.850%, 2003 97,500 10,060 10,042 (b)(d)
CONN LT & PWR $50 5.300%, 2003 95,300 4,742 4,574
CON EDISON $100 SR J 6.125%, 2002 150,000 15,060 15,863
DAYTON P&L $100 I 9.375%, 2002 9,000 913 936 (b)(d)
DAYTON PWR & LT $100 8.625%, 2003 43,600 4,375 4,404 (b)(d)
DUKE POWER $100 SR V 6.400%, 2002 30,000 3,000 3,210
DUKE POWER $100 SR U 6.300%, 2001 30,000 3,000 3,210
DUKE POWER $100 SR T 6.200%, 2000 30,000 3,000 3,210
DUKE POWER 1992D $25 6.200%, 2001 200,000 5,009 5,250
DUKE POWER 1992C $25 6.100%, 2000 250,000 6,288 6,563
GTE $50 PFD 7.750%, 2008 141,401 7,088 7,281 (b)(d)
GTE CORP $50 PFD 7.850%, 2007 152,889 7,516 7,852 (b)(d)
GOODRICH BF CO $100 7.850%, 1998 16,685 1,626 1,719
GREEN MTN PWR CL-D/3 8.625%, 2000 70,000 7,000 7,403 (b)(d)
HAWAII ELEC $100 8.500%, 2005 20,000 1,992 2,134 (b)(d)
MAUI ELEC $100 8.500%, 2005 25,000 2,490 2,667 (b)(d)
HOUSTON LTG $100 8.500%, 1997 89,851 8,999 9,120
HOUSTON LT PWR $100 9.375%, 1999 155,000 15,612 16,624 (b)(d)
ILLINOIS PWR SER P 8.000%, 1997 76,482 7,585 7,266
IOWA ILLINOIS EL$100 7.800%, 2006 73,300 7,642 8,255
JERSEY CENTRAL P&L 8.650%, 2005 75,000 7,500 8,681
JERSEY CENTRAL P & L 8.480%, 2000 75,000 7,487 8,381
KN ENERGY PFD 8.500%, 1996 2,000 201 200 (b)(d)
LONG ISL LGT SER AA 7.950%, 2000 800,000 20,294 21,100
LONG ISLAND LIGHTING 8.500%, 1997 9,199 888 943 (b)(d)
LOUISIANA P&L $100 7.000%, 1999 80,000 8,012 8,460
LOUISIANA P & L $100 8.000%, 2001 150,000 15,000 16,050
MAINE YANKEE $100 7.480%, 2001 52,352 5,045 5,536
MN P & L 144A $100 7.125%, 2002 50,000 4,963 5,000 (b)(d)
MN P&L 144A 6.70 6.700%, 2002 100,000 10,000 10,500 (b)(d)
MISS P&L $100 9.760%, 1997 52,279 5,228 5,372
MISS P & L $100 9.000%, 1995 31,082 3,091 3,221
NO IND PUB SERV $100 8.750%, 1996 250,000 25,561 25,875 (b)(d)
NJ NATL GAS 100 144A 7.720%, 2001 200,000 20,000 20,500 (b)(d)
NIAGARA MOHAWK $25 8.375%, 1998 78,750 1,941 2,003 (b)(d)
NIAGARA MOHAWK POWER 8.750%, 1996 126,243 3,163 3,535
NIAGARA MOHAWK $25 B 7.000%, 2024 288,113 7,203 7,131
NIAGARA MOHAWK $25 9.750%, 1996 25,054 635 637 (b)(d)
NO IND PUB SERV $100 8.850%, 2003 52,500 5,295 5,385 (b)(d)
NORTHWEST NAT GA 100 6.950%, 2002 150,000 15,000 15,488
ORANGE ROCKLAND$100 8.125%, 1997 26,171 2,634 2,686 (b)(d)
</TABLE>
<PAGE>
PAGE 54
<TABLE>
<CAPTION>
Bal. Held
at 12-31-93 Cost Value at
Number of (Notes 12-31-93
Name of Issuer and Title of Issue Shares a & c) (Note a)
- --------------------------------- ------------ ---------- ----------
<S> <C> <C> <C>
OTTER TAIL PWR $100 6.350%, 2007 180,000 18,000 18,630
PACIFIC ENT $100000 7.500%, 1994 200 20,000 19,400
PACIFIC GAS & ELEC 6.570%, 2007 525,000 13,076 13,584
PACIFICORP $100 PAR 7.700%, 2001 150,000 15,000 16,463
PENN GAS & WTR $100 8.900%, 1998 40,000 3,718 4,119 (b)(d)
PENN PWR & LT $100 6.330%, 2008 50,000 5,000 5,100
PENN PWR & LT $100 7.000%, 1997 141,649 13,955 14,200
PHIL ELEC $100 6.120%, 2003 54,300 5,422 5,484
PHILADELPHIA ELEC 9.875%, 1997 62,606 6,268 6,636
POTOMAC ELEC PWR $50 6.800%, 2007 160,800 7,930 8,402
POTOMAC ELECTRIC 7.780%, 2006 160,000 8,008 9,940
PUB SERV COLO $100 7.500%, 2009 173,368 16,666 17,770 (b)(d)
PUGET SOUND P&L $100 8.000%, 2004 8,182 817 821
ROCHESTER G & E $100 7.650%, 1999 20,000 2,000 2,180
ROCHESTER G & E $100 7.550%, 1998 62,000 6,200 6,758
ROCHESTER G & E $100 7.450%, 1997 52,500 5,250 5,723
ROCHESTER G&E $100 8.250%, 1997 30,910 3,058 3,168
SIERRA PAC PWR SER G 8.240%, 1998 137,000 6,904 7,175
SO CA EDISON $100 6.450%, 2002 147,250 14,786 15,572
SO CA GAS ARP 2.930%, 1994 3,000 3,000 3,000
SOUTHWEST GAS 9.500%, 1999 3,275 331 341 (b)(d)
SO INDIANA G&E 100 6.500%, 2002 75,000 7,500 7,763 (b)(d)
TENNECO SRS B $100 7.400%, 1998 86,151 8,357 8,615
TEXACO PFD C VR RATE 7.600%, 1994 556,195 27,808 28,505
TEXAS UTIL $100 PAR 6.980%, 2008 50,000 5,000 5,138
TEXAS UTILITY $100 9.640%, 1998 100,000 10,079 10,138 (b)(d)
TRANSCONT'L GAS PIPE 8.750%, 1996 86,250 8,628 8,625 (b)(d)
UNITED TELECOM $100 7.750%, 2008 42,358 4,051 4,236 (b)(d)
UNITED TEL FL $10 5.250%, 2000 11,550 108 1,109 (b)(d)
VIRGINIA ELEC & PWR 6.350%, 2000 121,400 12,229 12,656
VIRGINIA ELEC ARP 2.990%, 1994 4,000 4,000 4,000
WASHINGTON WATER 8.625%, 2000 80,000 8,017 8,840
WASHINGTON WTR POWER 6.950%, 2007 50,000 5,000 5,275
WEST TEXAS UTIL $100 7.250%, 1995 10,265 1,028 1,034
------------ ---------- ----------
10,199,976 710,716 747,919
============ ---------- ----------
Finance
LASALLE NATIONAL ARP 2.950%, 1994 3,000 3,000 3,000
REPUBLIC NY ARP 2.940%, 1994 3,000 3,000 3,000
------------ ---------- ----------
6,000 6,000 6,000
============ ---------- ----------
Industrial
ALLTEL 7.75 $100 PAR 7.750%, 2005 9,390 946 948 (b)(d)
BOWATER $50 VAR RATE 7.040%, 1998 251,800 11,886 11,425
COMBUSTION ENG $100 9.125%, 1999 200,000 20,000 21,375 (b)(d)
HARTFD FIRE S2 $50 7.175%, 1995 326,600 16,092 15,105
</TABLE>
<PAGE>
PAGE 55
<TABLE>
<CAPTION>
Bal. Held
at 12-31-93 Cost Value at
Number of (Notes 12-31-93
Name of Issuer and Title of Issue Shares a & c) (Note a)
- --------------------------------- ------------ ---------- ----------
<S> <C> <C> <C>
HARTFORD FIRE CL-C 7.500%, 1997 119,887 5,979 6,264
JAMES RVR SR D $100 8.750%, 1997 3,250 331 327
SARA LEE ARP 2.820%, 1994 3,000 3,000 3,000
SMITHKLINE BEECHAM ARP 2.980%, 1994 4,000 4,000 4,000
XEROX CORP $50 PAR 7.375%, 1998 368,100 18,094 18,957
------------ ---------- ----------
1,286,027 80,328 81,401
============ ---------- ----------
Total Preferred Stocks 797,044 835,320
---------- ----------
OTHER
Industrial
AM INTERNATIONAL 162,529 1,463 1,564 (f)
MRS FIELDS 20,176,717 605 605 (f)
WAXMAN IND WARRANTS EXP 1996 150,000 150 188 (f)
------------ ---------- ----------
Total Other 20,489,246 2,218 2,357
============ ---------- ----------
Total Investments in Securities
of Unaffiliated Issuers 2,433,968 2,544,770
Less Reserve for Possible Losses
on Corporate issues 2,049
---------- ----------
2,431,919 2,544,770
========== ==========
NOTES
(a) See notes 1 and 3 to financial statements regarding determination of cost
and fair values.
(b) Securities valued by IDS Certificate Company at fair value in the absence
of market quotations.
(c) The aggregate cost of investments in securities of unafilliated issuers
for federal income tax purposes was $2,429,548.
(d) Securities acquired in private negotiation which may require registration
under federal securities laws if they were to be publicly sold. Also see
note 3B to financial statements.
(e) Non-income producing securities.
(f) Carried at the lower of cost or market in the balance sheet.
</TABLE>
<PAGE>
PAGE 56
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE II
Investments in and Advances to Affiliates and Income Thereon
December 31, 1993, 1992 and 1991
($ in thousands)
- -----------------------------------------------------------------------------------
Balance December 31, 1993 Interest
--------------------------------- Dividends
Principal Carrying Credited
Amount or Cost Value to Income
Name of Issuer and Title of Issue No. of Shares (a)&(c) (b) (d)
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Wholly Owned Subsidiary (b):
Real Estate Investment Company:
Investors Syndicate Development
Corporation:
Capital Stock................ 100 $2,548 $ 4,128 $ 0
===== ----- ------- ----------
Other Controlled Company:
Real Estate Development Company:
Mankato Ventures, First Mortgage
Loan........................... $ 684 684 684 78
===== ----- ------- ----------
Other Affiliates (as defined
in Sec. 2(a)(3) of the
Investment Company Act
of 1940)......................... 0 0 0 0
===== ----- ------- ----------
Total affiliates............... $3,232 $ 4,812 $ 78
===== ======= ==========
</TABLE>
<PAGE>
PAGE 57
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE II
Investments in and Advances to Affiliates and Income Thereon
December 31, 1993, 1992 and 1991
($ in thousands)
- -----------------------------------------------------------------------------------
Balance December 31, 1992 Interest
--------------------------------- Dividends
Principal Carrying Credited
Amount or Cost Value to Income
Name of Issuer and Title of Issue No. of Shares (a)&(c) (b) (d)
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Wholly Owned Subsidiary (b):
Real Estate Investment Company:
Investors Syndicate Development
Corporation:
Capital Stock................ 100 $ 548 $ 2,008 $ 0
===== ----- ------- ----------
Other Controlled Company:
Real Estate Development Company:
Mankato Ventures, First Mortgage
Loan........................... $ 779 779 779 88
===== ----- ------- ----------
Other Affiliates (as defined
in Sec. 2(a)(3) of the
Investment Company Act
of 1940)......................... 0 0 0 0
===== ----- ------- ----------
Total affiliates............... $1,327 $ 2,787 $ 88
===== ======= ==========
</TABLE>
<PAGE>
PAGE 58
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE II
Investments in and Advances to Affiliates and Income Thereon
December 31, 1993, 1992 and 1991
($ in thousands)
- -----------------------------------------------------------------------------------
Balance December 31, 1991 Interest
--------------------------------- Dividends
Principal Carrying Credited
Amount or Cost Value to Income
Name of Issuer and Title of Issue No. of Shares (a)&(c) (b) (d)
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Wholly Owned Subsidiary (b):
Real Estate Investment Company:
Investors Syndicate Development
Corporation:
Capital Stock................ 100 $ 548 $ 2,006 $ 0
===== ----- ------- ----------
Other Controlled Company:
Real Estate Development Company:
Mankato Ventures, First Mortgage
Loan........................... $ 864 864 864 97
===== ----- ------- ----------
Other Affiliates (as defined
in Sec. 2(a)(3) of the
Investment Company Act
of l940)......................... 0 0 0 0
===== ----- ------- ----------
Total affiliates............... $1,412 $ 2,870 $ 97
===== ======= ==========
</TABLE>
<PAGE>
PAGE 59
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE II
Investments in and Advances to Affiliates and Income Thereon
December 31, 1993, 1992 and 1991
($ in thousands)
- ------------------------------------------------------------
NOTES:
(a) The aggregate cost for federal income tax purposes at December 31,
1993, 1992 and 1991 was $4,677, $2,652 and $2,523 respectively,
subject to possible adjustment in certain circumstances under
consolidated income tax return regulations.
(b) Investments in stocks of wholly owned subsidiaries are carried
at cost adjusted for equity in undistributed net income since
organization or acquisition of the subsidiaries.
(c) Changes in investment in affiliate during the three years ended
December 31, 1993 are summarized below:
Cost at Additions (Deductions) Cost at
Name of Issuer and Dec. 31, Dec. 31,
Title of Issue 1990 1991 1992 1993 1993
------------------- -------- ---- ---- ---- --------
<S> <C> <C> <C> <C> <C>
Mankato Ventures,
First Mortgage
Loan 940 (76) (85) (95) 684
(d) There were no dividends or interest earned which were not credited
to income.
</TABLE>
<PAGE>
PAGE 60
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE III
Mortgage Loans on Real Estate and Interest Earned on Mortgages
Year Ended December 31, 1993
($ in thousands)
Part 1 - Mortgage loans on real state at end of period
------------- ----------------------------------------------
Amount of principal
unpaid at end of period
-------------------------
Carrying Subject Amount
amount of to of
Number Prior mortgages delinquent mortgages
of liens (c),(g),(h) interest being
Description (a) loans (b) and (i) Total (d) forclosed
- --------------- ------ ----- ---------- ------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
First mortgages:
Insured by Federal Housing Administration - liens on:
Residential - under $100 3 28 28 10 4
Apartment and business - under $100 0 0 0 0 0
----- ------ ------ --------- -----------
Total 3 28 28 10 4
----- ------ ------ --------- -----------
Partially guaranteed under Servicemen's
Readjustment Act of 1944, as amended - liens on:
Residential - under $100 1 25 25 25 0
Apartment and business - under $100 0 0 0 0 0
----- ------ ------ --------- -----------
Total 1 25 25 25 0
----- ------ ------ --------- -----------
Other - liens on:
Residential
Under $100 5 11 11 0 0
Apartment and business: ----- ------ ------ --------- -----------
Under $100 2 41 41 0 0
$100 to $150 3 330 330 0 0
$150 to $200 1 244 244 0 0
$200 to $250 0 0 0 0 0
$250 to $300 0 0 0 0 0
$300 to $350 4 1,278 1,278 0 0
$350 to $400 1 396 396 0 0
$400 to $450 2 852 852 0 0
$450 to $500 2 924 924 0 0
Over $500
Loan No. Mortgagor Property Location
- -------- --------- -----------------
20-00001 NSP, LTD Bloomington, MN 1 726 726 0 0
21-46978 Kraus Anderson Burnsville, MN 1 459 709 0 0
21-46996 Kraus Anderson Bloomington, MN 1 617 617 0 0
21-47000 Vinland Property Trust Dallas, TX 1 916 1,266 0 0
21-47004 Retired Teachers Housing Authority Yukon, OK 1 910 910 0 0
</TABLE>
<PAGE>
PAGE 61
<TABLE>
<CAPTION>
Part 1 - Mortgage loans on real estate at end of period
------------- ----------------------------------------------
Amount of principal
unpaid at end of period
-------------------------
Carrying Subject Amount
amount of to of
Number Prior mortgages delinquent mortgages
of liens (c),(g),(h) interest being
Description (a) loans (b) and (i) Total (d) forclosed
- --------------- ------ ----- ---------- ------ ----------- ------------
Over $500
Loan No. Mortgagor Property Location
- -------- --------- -----------------
<S> <C> <C> <C> <C> <C> <C>
21-47005 ALM Enterprises, Inc. Fredericksburg, VA 1 678 678 0 0
21-47032 Independent Order of Foresters Irvine, CA 1 591 591 0 0
21-47084 Ryan Construction Co. Eden Prairie, MN 1 1,942 1,942 0 0
21-47106 1225 No. County Road 18 LTD Plymouth, MN 1 1,789 1,789 0 0
21-47110 Lloyd Engelsma Brooklyn Park, MN 1 2,876 2,876 0 0
21-47116 McCaughey Dev. Association Madison, WI 1 1,311 1,311 0 0
21-47119 Greenway Plaza, Ltd. Houston, TX 1 2,562 3,033 0 0
21-47120 Greenway Plaza, Ltd. Houston, TX 1 2,866 3,395 0 0
21-47128 Century Income Properties Fund Brookfield,WI 1 2,265 2,265 0 0
21-47129 Retired Teachers Housing Yukon, OK 1 660 660 0 0
21-47131 Stephen M. and Sylvia C. Slifko Akron, OH 1 2,954 2,954 0 0
21-47133 Dennis P. Bruyere Houston, TX 1 200 561 0 0
21-47134 Carisch Development Co. Wayzata, MN 1 3,001 3,001 0 0
21-47136 Ameritrust Co. National Association Clearwater, FL 1 3,349 3,349 0 0
21-47139 Treasurer's Island Inc. Eagan, MN 1 1,616 1,616 0 0
21-47140 Harbour Run LTD MentorOnTheLake,OH 1 4,268 4,268 0 0
21-47141 John E. Smith Lafayette, IN 1 4,692 4,692 0 0
21-47142 34th Street Properties Partnership Gainsville, FL 1 10,407 10,407 0 0
21-47143 H-5 Inc. Alexandria, MN 1 2,927 2,927 0 0
21-47144 Turnquist, Inc. Brooklyn Park, MN 1 4,848 4,848 0 0
21-47147 Columbus Real Estate Co. Hilliard, OH 1 8,092 8,092 0 0
21-47148 Turner Development Corporation Orlando, FL 1 5,410 5,410 0 0
21-47149 Turner Development Corporation Indialantic, FL 1 4,426 4,426 0 0
21-47150 Bircain Apartment Company LP Gladstone, MO 1 2,513 2,513 0 0
21-47151 Pinecrest I Spokeane, WA 1 1,119 1,119 0 0
21-47152 Richard D. Fownes Trustee Boston, MA 1 3,807 3,807 0 0
21-47153 Fox Run of Omaha, Inc. Omaha, NE 1 2,641 2,641 0 0
21-47154 Kenneth Grandberg Trustee Randolph, MA 1 3,206 3,206 0 0
21-47155 VLM Partnership Overland Park, KS 1 2,929 2,929 0 0
21-47156 LT Limited Partnership Lafayette, IN 1 4,354 4,354 0 0
21-47157 John A. Belanich Tampa, FL 1 3,707 3,707 0 0
21-47158 Grande Associates South River, NJ 1 4,338 4,338 0 0
21-47159 Grande Associates Marlton, NJ 1 3,943 3,943 0 0
21-47160 James Esshaki DBA Taylor MI 1 6,223 6,223 0 0
21-47162 York Creek #3 LTD DBA Taylor MI 1 4,054 4,054 0 0
21-47163 Bayrock Investment Company Sarasota, FL 1 6,664 6,664 0 0
21-47164 K & M Hamilton Development Co. Hamilton, OH 1 5,892 5,892 0 0
21-47165 Bowling Freen Partnership Sussex, WI 1 2,712 2,712 0 0
21-47166 Colonial Estates Associates Warrington, PA 1 6,459 6,459 0 0
</TABLE>
<PAGE>
PAGE 62
<TABLE>
<CAPTION>
Part 1 - Mortgage loans on real estate at end of period
------------- ----------------------------------------------
Amount of principal
unpaid at end of period
-------------------------
Carrying Subject Amount
amount of to of
Number Prior mortgages delinquent mortgages
of liens (c),(g),(h) interest being
Description (a) loans (b) and (i) Total (d) forclosed
- --------------- ------ ----- ---------- ------ ----------- ------------
Over $500
Loan No. Mortgagor Property Location
- -------- --------- -----------------
<S> <C> <C> <C> <C> <C> <C>
21-47167 Wilder Corp of Delaware Ruskin, FL 1 6,050 6,050 0 0
21-47168 Wilder Corp of Delaware Riverview, FL 1 3,340 3,340 0 0
21-47169 Franklin & Bonnie Kottshade Rochester, MN 1 4,424 4,424 0 0
21-47170 Franklin & Bonnie Kottshade Rochester, MN 1 1,186 1,186 0 0
21-47171 Desert Shadows Associates Tucson, AZ 1 6,173 6,173 0 0
21-47172 Dial Reit Inc. Fremont, NE 1 2,996 2,996 0 0
21-47173 Cinram Associates Fairfield, NJ 1 3,956 3,956 0 0
21-47174 Grande Associates Deptford Twnsp, NJ 1 8,398 8,398 0 0
21-47177 Griffin Real Estate Fund II LP Urbandale, IA 1 2,955 2,955 0 0
21-47178 Griffin Real Estate Fund II LP Urbandale, IA 1 2,560 2,560 0 0
21-47179 Moorestown Office Center Moorestown, NJ 1 2,774 2,774 0 0
21-47181 Westlake #1 Limited Partnership Charlotte, NC 1 2,485 2,485 0 0
21-47182 Shagbark Limited Partnership Kenosha, WI 1 6,753 6,753 0 0
21-47183 Cowne Point Ltd Partnership Holland, MI 1 3,974 3,974 0 0
21-47184 Mcnab Commerce Center Association Pompano Beach, FL 1 2,270 2,270 0 0
21-47186 Mack Edison Company Edison, NJ 1 7,257 7,257 0 0
21-47187 Industrial Development Association Mebane, NC 1 3,170 3,170 0 0
21-47190 Dial Reit Inc. Davenport, IA 1 4,298 4,298 0 0
21-47191 SSC Associates Ltd Ptnshp St. Clair Shores, 1 6,466 6,466 0 0
21-47192 Tree Trail Village Association Norcross, GA 1 6,798 6,798 0 0
21-47193 ECPG (Peoria) Association Glendale, AZ 1 6,741 6,741 0 0
21-47194 Briar Development Company Tacoma, WA 1 4,486 4,486 0 0
21-47195 Tipotex Inc. Pharr, TX 1 1,985 1,985 0 0
21-47196 Wilder Corporation Pharr, TX 1 4,442 4,442 0 0
21-47197 Wilder Corporation Alamo, TX 1 1,017 1,017 0 0
21-47198 Investors Real Estate Trust Grand Forks, ND 1 4,432 4,432 0 0
21-47199 Warren and Kelso Company Cheltenham Twsp, P 1 2,984 2,984 0 0
21-47200 Mid-Country Trade Center Vinita Park, FL 1 4,484 4,484 0 0
21-47201 Oakland Park Festival Ctr Oakland Park, FL 1 4,580 4,580 0 0
21-47202 Lakewood West Ltd Partnership Lakewood, CO 1 4,478 4,478 0 0
0-2013291 Ryan Equities Pantago, TX 1 855 855 0 0
0-2022301 Western Real Estate Fund, Inc. Pasadena, TX 1 2,821 3,510 0 0
0-3013979 Main Motor Sales Co. Anoka, MN 1 671 671 0 0
0-3027654 DFB Associates Costa Mesa, CA 1 1,299 1,299 0 0
0-3031967 Special Partnership St. Anthony, MN 1 611 611 0 0
0-4020251 National Income Realty Trust Miami, FL 1 1,648 1,648 1,648 1,648
----- ------- ------- --------- -----------
95 281,801 284,451 1,648 1,648
----- ------- ------- --------- -----------
Total Other 100 281,812 284,462 1,648 1,648
----- ------- ------- --------- -----------
Total First Mortgage Loans on Real Estate 104 281,865 284,515 1,683 1,652
===== ======= ======= ========= ===========
</TABLE>
<PAGE>
PAGE 63
<TABLE>
<CAPTION>
Part 2 -
Interest earned on mortgages
----------------------------
Average
gross rate
Interest of interest
due and on mortgages
accrued held at end
at end of of period
Description (a) period (e) (f)
- --------------- ------------ --------------
<S> <C> <C>
First mortgages:
Insured by Federal Housing Administration - liens on:
Residential - under $100 7.076%
Apartment and business - under $100 0.000%
------------
Total 7.076%
------------
Partially guaranteed under Servicemen's
Readjustment Act of 1944, as amended - liens on:
Residential - under $100 8.000%
Apartment and business - under $100 0.000%
------------
Total 8.000%
------------
Other - liens on:
Residential
Under $100 5.704%
Apartment and business: ------------
Under $100 8.958%
$100 to $150 8.709%
$150 to $200 9.625%
$200 to $250 0.000%
$250 to $300 0.000%
$300 to $350 9.878%
$350 to $400 9.000%
$400 to $450 9.222%
$450 to $500 9.579%
Over $500
Loan No. Mortgagor Property Location
- -------- --------- -----------------
20-00001 NSP, LTD Bloomington, MN 9.500%
21-46978 Kraus Anderson Burnsville, MN 9.250%
21-46996 Kraus Anderson Bloomington, MN 8.750%
21-47000 Vinland Property Trust Dallas, TX 10.125%
21-47004 Retired Teachers Housing Authority Yukon, OK 8.875%
</TABLE>
<PAGE>
PAGE 64
<TABLE>
<CAPTION>
Part 2 -
Interest earned on mortgages
----------------------------
Average
gross rate
Interest of interest
due and on mortgages
accrued held at end
at end of of period
Description (a) period (e) (f)
- --------------- ------------ --------------
Over $500
Loan No. Mortgagor Property Location
- -------- --------- -----------------
<S> <C> <C>
21-47005 ALM Enterprises, Inc. Fredericksburg, VA 9.000%
21-47032 Independent Order of Foresters Irvine, CA 9.750%
21-47084 Ryan Construction Co. Eden Prairie, MN 8.500%
21-47106 1225 No. County Road 18 LTD Plymouth, MN 10.250%
21-47110 Lloyd Engelsma Brooklyn Park, MN 9.875%
21-47116 McCaughey Dev. Association Madison, WI 8.500%
21-47119 Greenway Plaza, Ltd. Houston, TX 9.375%
21-47120 Greenway Plaza, Ltd. Houston, TX 9.375%
21-47128 Century Income Properties Fund Brookfield,WI 10.000%
21-47129 Retired Teachers Housing Yukon, OK 12.000%
21-47131 Stephen M. and Sylvia C. Slifko Akron, OH 10.625%
21-47133 Dennis P. Bruyere Houston, TX 9.500%
21-47134 Carisch Development Co. Wayzata, MN 10.500%
21-47136 Ameritrust Co. National Association Clearwater, FL 9.500%
21-47139 Treasurer's Island Inc. Eagan, MN 8.750%
21-47140 Harbour Run LTD MentorOnTheLake,OH 10.375%
21-47141 John E. Smith Lafayette, IN 10.000%
21-47142 34th Street Properties Partnership Gainsville, FL 8.125%
21-47143 H-5 Inc. Alexandria, MN 11.250%
21-47144 Turnquist, Inc. Brooklyn Park, MN 8.875%
21-47147 Columbus Real Estate Co. Hilliard, OH 9.125%
21-47148 Turner Development Corporation Orlando, FL 9.375%
21-47149 Turner Development Corporation Indialantic, FL 9.375%
21-47150 Bircain Apartment Company LP Gladstone, MO 9.750%
21-47151 Pinecrest I Spokeane, WA 9.875%
21-47152 Richard D. Fownes Trustee Boston, MA 9.750%
21-47153 Fox Run of Omaha, Inc. Omaha, NE 9.750%
21-47154 Kenneth Grandberg Trustee Randolph, MA 9.750%
21-47155 VLM Partnership Overland Park, KS 9.750%
21-47156 LT Limited Partnership Lafayette, IN 10.000%
21-47157 John A. Belanich Tampa, FL 10.000%
21-47158 Grande Associates South River, NJ 9.500%
21-47159 Grande Associates Marlton, NJ 9.500%
21-47160 James Esshaki DBA Taylor MI 10.000%
21-47162 York Creek #3 LTD DBA Taylor MI 9.750%
21-47163 Bayrock Investment Company Sarasota, FL 9.375%
21-47164 K & M Hamilton Development Co. Halmilton, OH 9.625%
21-47165 Bowling Freen Partnership Sussex, WI 8.750%
21-47166 Colonial Estates Associates Warrington, PA 8.625%
</TABLE>
<PAGE>
PAGE 65
<TABLE>
<CAPTION>
Part 2 -
Interest earned on mortgages
----------------------------
Average
gross rate
Interest of interest
due and on mortgages
accrued held at end
at end of of period
Description (a) period (e) (f)
- --------------- ------------ --------------
Over $500
Loan No. Mortgagor Property Location
- -------- --------- -----------------
<S> <C> <C>
21-47167 Wilder Corp of Delaware Ruskin, FL 9.500%
21-47168 Wilder Corp of Delaware Riverview, FL 9.500%
21-47169 Franklin & Bonnie Kottshade Rochester, MN 9.000%
21-47170 Franklin & Bonnie Kottshade Rochester, MN 9.750%
21-47171 Desert Shadows Associates Tucson, AZ 8.750%
21-47172 Dial Reit Inc. Fremont, NE 8.250%
21-47173 Cinram Associates Fairfield, NJ 8.500%
21-47174 Grande Associates Deptford Twnsp, NJ 8.875%
21-47177 Griffin Real Estate Fund II LP Urbandale, IA 8.375%
21-47178 Griffin Real Estate Fund II LP Urbandale, IA 8.375%
21-47179 Morrestown Office Center Morrestown, NJ 9.000%
21-47181 Westlake #1 Limited Partnership Charlotte, NC 8.250%
21-47182 Shagbark Limited Partnership Kenosha, WI 9.000%
21-47183 Cowne Point Ltd Partnership Holland, MI 9.250%
21-47184 Mcnab Commerce Center Association Pompano Beach, FL 9.000%
21-47186 Mack Edison Company Edison, NJ 8.000%
21-47187 Industrial Development Association Mebane, NC 8.000%
21-47190 Dial Reit Inc. Davenport, IA 8.000%
21-47191 SSC Associates Ltd Ptnshp St. Clair Shores, MI 8.125%
21-47192 Tree Trail Village Association Norcross, GA 8.250%
21-47193 ECPG (Peoria) Association Glendale, AZ 8.750%
21-47194 Briar Development Company Tacoma, WA 8.750%
21-47195 Tipotex Inc. Pharr, TX 9.125%
21-47196 Wilder Corporation Pharr, TX 9.125%
21-47197 Wilder Corporation Alamo, TX 9.125%
21-47198 Investors Real Estate Trust Grand Forks, ND 6.125%
21-47199 Warren and Kelso Company Cheltenham Twsp, PA 8.125%
21-47200 Mid-Country Trade Center Vinita Park, FL 7.875%
21-47201 Oakland Park Festival Ctr Oakland Park, FL 7.750%
21-47202 Lakewood West Ltd Partnership Lakewood, CO 7.750%
0-2013291 Ryan Equities Pantago, TX 11.125%
0-2022301 Western Real Estate Fund, Inc. Pasadena, TX 9.750%
0-3013979 Main Motor Sales Co. Anoka, MN 9.875%
0-3027654 DFB Associates Costa Mesa, CA 9.500%
0-3031967 Special Partnership St. Anthony, MN 9.250%
0-4020251 National Income Realty Trust Miami, FL 9.500%
------------
9.055%
------------
Total Other 9.055%
------------
Total First Mortgage Loans on Real Estate 9.055%
============
</TABLE>
<PAGE>
PAGE 66
<TABLE>
<CAPTION>
Part 3 - Location of mortgaged properties
- -----------------------------------------
($ in thousands)
Amount of principal
unpaid at end of period
-----------------------
Carrying Subject
State in amount of to Amount of
which mortgaged Number Prior mortgages delinquent mortgages
property of liens (c), (g), interest being
is located loans (b) (h) and (i) Total (d) foreclosed
- --------------- ------- ----- ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Arizona 2 12,914 12,914
California 3 2,330 2,330
Colorado 1 4,479 4,479
Florida 13 52,201 52,201 1,648 1,648
Georgia 2 7,124 7,124
Indiana 2 9,046 9,046
Iowa 3 9,812 9,812
Kansas 1 2,929 2,929
Louisiana 2 4 4 4 4
Massachusetts 2 7,013 7,013
Michigan 4 20,717 20,717
Minnesota 23 29,120 29,370 31
Missouri 2 6,997 6,997
Nebraska 2 5,637 5,637
New Jersey 7 31,063 31,063
North Carolina 2 5,655 5,655
North Dakota 1 4,432 4,432
Ohio 4 21,206 21,206
Oklahoma 3 1,870 1,870
Pennsylvania 2 9,443 9,443
South Dakota 1 412 412
Texas 15 18,136 20,536
Virginia 1 678 678
Washington 2 5,605 5,605
Wisconsin 4 13,042 13,042
------ ---------- ---------- --------- ---------
Total 104 281,865 284,515 1,683 1,652
====== ========== ========== ========= =========
</TABLE>
<PAGE>
PAGE 67
NOTES:
(a) The classification "residential" includes single dwellings only.
business".
(b) Real estate taxes and easements, which in the opinion of the Company
are not undue burden on the properties, have been excluded from
the determination of "prior liens".
(c) In this schedule III, carrying amount of mortgage loans represents
unpaid principal balances plus unamortized premiums less
unamortized dicounts and allowance for loss.
(d) Interest in arrears for less than three months has been disregarded
in computing the total amount of principal subject to delinquent
interest. The amounts of mortgage loans being forclosed are
also included in amounts subject to delinquent interest.
(e) Information as to interest due and accrued at the end of the period
is shown by type of mortgage loan. Information as to interest
due and accrued for the various classes within the types of
mortgage loans is not readily available and the obtaining
thereof would involve unreasonable effort and expense.
The Company does not accrue interest on loans which are over three
months delinquent.
(f) Information as to interest income by type and class of loan has been
omitted because it is not readily available and the obtaining
thereof would involve unreasonable effort and expense. In lieu
thereof, the average gross interest rates (exclusive of amort-
tization of discounts and premiums) on mortgage loans held at
December 31, 1993 are shown by type and class of loan.
The average gross interest rates on mortgage loans held at
December 31, 1993, 1992 and 1991 are summarized as follows:
1993 1992 1991
First mortgages: ----- ----- -----
Insured by Federal Housing
Administration 7.076% 5.817% 5.765%
Partially guaranteed under
Servicemen's Readjustment
Act of 1944, as amended 8.000 6.719 6.447
Other 9.055 9.282 9.628
----- ----- -----
Combined average 9.055% 9.207% 9.433%
===== ===== =====
<PAGE>
PAGE 68
(g) Following is a reconciliation of the carrying amount of mortgage
loans for the years ended December 31, 1993, 1992 and 1991.
1993 1992 1991
---- ---- ----
[S] [C] [C] [C]
Balance at beginning
of period $ 233,796 $ 145,055 $ 96,083
Additions during period:
New loans acquired:
Nonaffiliated
companies 59,183 98,314 61,990
Allowance for loss
transferred to
real estate 530 350 0
Allowance for loss
real estate 220 0 0
Amortization of
discount/premium 90 61 129
---------- ---------- ----------
Total additions 60,023 98,725 62,119
---------- ---------- ----------
293,819 243,780 158,202
---------- ---------- ----------
Deductions during period:
Collections of
principal 5,908 9,484 12,147
Cost of mortgages sold 6,046 0 0
Allowance for loss 0 500 782
Writeoff 0 0 218
---------- ---------- ----------
Total deductions 11,954 9,984 13,147
---------- ---------- ----------
Balance at end of
period $ 281,865 $ 233,796 $ 145,055
========== ========== ==========
(h) The aggregate cost of mortgage loans for federal income tax purposes
at December 31, 1993 was $282,865.
(i) At December 31, 1993, an allowance for loss of $961 is recorded to
reduce the carrying value of conventional loans since evidence
indicates that a loss is likely to occur.
<PAGE>
PAGE 69
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE V
Qualified Assets on Deposit
December 31, 1993
($ thousands)
Investments in Securities
-------------------------
Bonds and Mortgage
Notes Stocks Loans Other
Name of Depositary (a) (b) (c) (d) Total
------------------ ----------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
Deposits with states or their de-
positaries to meet requirements
of statutes and agreements:
Illinois - Secretary of
State of Illinois $ 52 $ 0 $ 0 $ 0 $ 52
New Jersey - Commissioner
of Banking and Insurance
of New Jersey 100 0 0 0 100
Pennsylvania - Treasurer
of the State of
Pennsylvania 150 0 0 0 150
Texas - Treasurer of the
State of Texas 119 0 0 0 119
---------- ---------- -------- --------- ----------
Total deposits with states
or their depositaries to
meet requirements of
statues and agreements 421 0 0 0 421
Central depositary - IDS Bank &
Trust 1,701,108 799,262 276,710 37,473 2,814,553
---------- ---------- -------- --------- ----------
Total $1,701,529 $ 799,262 $276,710 $ 37,473 $2,814,974
========== ========== ======== ========= ==========
Notes:
(a) Represents amortized cost of bonds and notes.
(b) Represents average cost of individual issues of stocks.
(c) Represents unpaid principal balance of mortgage loans less unamortized
discounts and reserve for losses.
(d) Represents amortized cost of interest rate caps of $24,809 and amortized cost of
purchased call options of $12,664.
</TABLE>
<PAGE>
PAGE 70
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE IX
Supplementary Profit and Loss Information
Three Years ended December 31, 1993
($ thousands)
Total - All charged
to investment expense
---------------------
Item 1993 1992 1991
---- ---- ---- ----
<S> <C> <C> <C>
l. Legal expenses, including those in
connection with any matter, measure or
proceeding before legislative bodies,
officers or government departments:
Paid to IDS Financial Services Inc.
for services rendered by its
law department $ 0 $ 0 $ 0
Paid to others 0 0 7
2. Advertising and publicity (note a) 0 0 0
3. Sales promotion (note a) 0 0 0
4. Payments directly or indirectly to trade
associations and service organizations
and contributions to other organizations:
Direct payments 0 0 0
Indirect payments - included in pro
rata share of general office
expenses paid to IDS Financial
Services Inc. 29 37 37
Note:
(a) Under the terms of underwriting agreements with
IDS Financial Services Inc. (IDS) in effect during the
year ended December 31, 1993, IDS agrees to pay for all
costs of advertising of IDSC, its business or operations,
and the investment certificates; no such expenses were
paid by IDSC during that period. Likewise, IDSC has made
no direct payments for sales promotion during that
period.
</TABLE>
<PAGE>
PAGE 71
<TABLE>
<CAPTION> Schedule XI
IDS CERTIFICATE COMPANY
Certificate Reserves
Part 1 - Summary of Changes
Year ended December 31, 1993 Balance at beginning of period
($ in thousands) --------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Installment certificates:
Reserves to mature:
Series 15, includes extended maturities 2.40 Inst/2.50 Ext. 2 $ 10 3
" 20, " " " 2.52 Inst/2.50 Ext. 342 4,413 3,974
" 15A, " " " 2.66 Inst/3.04 Ext. 193 2,729 2,279
" 22A, " " " 3.09 4,050 62,631 48,517
" I-76, " " " 3.35 1,611 38,701 12,557
" Reserve Plus Flexible Payment (note a) 2,673 26,975 13,050
" IC-Q-Installment (note a) 2,704 29,066 11,687
" IC-Q-Ins (note a) 62,152 901,920 226,172
" IC-Q-Ins Emp (note a) 377 5,526 1,117
" IC-1 (note a) 14,285 26,682 9,177
" IC-1-Emp (note a) 178 448 112
" RP-Q-Installment (note a) 2,584 38,607 17,327
" RP-Q-Flexible Payment (note a) 313 5,618 1,876
" RP-Q-Ins (note a) 1,848 45,648 10,175
" RP-Q-Ins Emp (note a) 11 603 23
" RP-1 (note a) 175 622 287
" RP-1-Emp (note a) 0 0 0
---------- ---------- ----------
Total 93,498 1,190,199 358,333
---------- ---------- ----------
Payments made in advance of certificate
year requirements and accrued interest
thereon:
Series 15, includes extended maturities 2 Not Not 1
" 20, " " " 2 Readily Applicable 167
" 15A, " " " 3 Available 70
" 22A, " " " 3 1,625
" I-76, " " " 3.5 414
----------
Total 2,277
----------
/TABLE
<PAGE>
PAGE 72
<TABLE>
<CAPTION> Additions
---------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
payment basis or income holders part 2)
Description ------------- ---------- ----------- ----------
- -----------
<S> <C> <C> <C> <C>
Installment certificates:
Reserves to mature:
Series 15, includes extended maturities 2.40 Inst/2.50 Ext. 0 0 0
" 20, " " " 2.52 Inst/2.50 Ext. 102 28 54
" 15A, " " " 2.66 Inst/3.04 Ext. 62 51 168
" 22A, " " " 3.09 1,477 1,054 2,996
" I-76, " " " 3.35 407 633 115
" Reserve Plus Flexible Payment (note a) 0 1,186 279
" IC-Q-Installment (note a) 0 1,334 322
" IC-Q-Ins (note a) 0 64,456 6,322
" IC-Q-Ins Emp (note a) 0 370 41
" IC-1 (note a) 0 40,556 716
" IC-1-Emp (note a) 0 457 10
" RP-Q-Installment (note a) 0 262 367
" RP-Q-Flexible Payment (note a) 0 190 54
" RP-Q-Ins (note a) 0 2,486 282
" RP-Q-Ins Emp (note a) 0 8 1
" RP-1 (note a) 0 938 19
" RP-1-Emp (note a) 0 8 0
---------- ----------- ----------
Total 2,048 114,017 11,746
---------- ----------- ----------
Payments made in advance of certificate
year requirements and accrued interest
thereon:
Series 15, includes extended maturities 2 0 0 0
" 20, " " " 2 6 25 6
" 15A, " " " 3 3 28 13
" 22A, " " " 3 62 459 114
" I-76, " " " 3.5 19 66 10
---------- ----------- ----------
Total 90 578 143
---------- ----------- ----------
/TABLE
<PAGE>
PAGE 73
<TABLE>
<CAPTION>
Deductions
---------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
Description payment basis Maturities maturity part 2)
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Installment certificates:
Reserves to mature:
Series 15, includes extended maturities 2.40 Inst/2.50 Ext. 0 0 0
" 20, " " " 2.52 Inst/2.50 Ext. 351 214 1,123
" 15A, " " " 2.66 Inst/3.04 Ext. 62 97 641
" 22A, " " " 3.09 2,282 2,689 7,000
" I-76, " " " 3.35 0 1,743 318
" Reserve Plus Flexible Payment (note a) 5,818 3,027 60
" IC-Q-Installment (note a) 0 4,145 7
" IC-Q-Ins (note a) 0 85,576 0
" IC-Q-Ins Emp (note a) 0 355 0
" IC-1 (note a) 0 4,368 0
" IC-1-Emp (note a) 0 203 0
" RP-Q-Installment (note a) 5,280 3,664 188
" RP-Q-Flexible Payment (note a) 0 443 0
" RP-Q-Ins (note a) 0 3,800 0
" RP-Q-Ins Emp (note a) 0 6 0
" RP-1 (note a) 0 83 0
" RP-1-Emp (note a) 0 2 0
---------- ---------- ----------
Total 13,793 110,415 9,337
---------- ---------- ----------
Payments made in advance of certificate
year requirements and accrued interest
thereon:
Series 15, includes extended maturities 2 0 0 0
" 20, " " " 2 10 5 76
" 15A, " " " 3 3 4 53
" 22A, " " " 3 63 92 736
" I-76, " " " 3.5 0 55 48
---------- ---------- ----------
Total 76 156 913
---------- ---------- ----------
/TABLE
<PAGE>
PAGE 74
<TABLE>
<CAPTION>
Balance at close of period
---------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Installment certificates:
Reserves to mature:
Series 15, includes extended maturities 2.40 Inst/2.50 Ext. 2 10 3
" 20, " " " 2.52 Inst/2.50 Ext. 210 2,686 2,470
" 15A, " " " 2.66 Inst/3.04 Ext. 145 2,019 1,760
" 22A, " " " 3.09 3,278 53,014 42,073
" I-76, " " " 3.35 1,383 32,777 11,651
" Reserve Plus Flexible Payment (note a) 1,125 11,612 5,610
" IC-Q-Installment (note a) 2,100 22,470 9,191
" IC-Q-Ins (note a) 46,692 664,245 211,374
" IC-Q-Ins Emp (note a) 282 4,145 1,173
" IC-1 (note a) 31,001 570,314 46,081
" IC-1-Emp (note a) 256 5,794 376
" RP-Q-Installment (note a) 1,305 19,178 8,824
" RP-Q-Flexible Payment (note a) 254 4,777 1,677
" RP-Q-Ins (note a) 1,339 31,825 9,143
" RP-Q-Ins Emp (note a) 10 567 26
" RP-1 (note a) 320 11,269 1,161
" RP-1-Emp (note a) 3 672 6
---------- ----------- ----------
Total 89,705 1,437,374 352,599
---------- ----------- ----------
Payments made in advance of certificate
year requirements and accrued interest
thereon:
Series 15, includes extended maturities 2 Not Not 1
" 20, " " " 2 Readily Applicable 113
" 15A, " " " 3 Available 54
" 22A, " " " 3 1,369
" I-76, " " " 3.5 406
----------
Total 1,943
----------
/TABLE
<PAGE>
PAGE 75
<TABLE>
<CAPTION>
Balance at beginning of period
--------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Additional credits and accrued interest
thereon:
Series 15, includes extended maturities 2.5 0
" 20, " " " 2.5 Not Not 951
" 15A, " " " 3 Readily Applicable 411
" 22A, " " " 3 Available 9,683
" I-76, " " " 3.5 2,820
" Reserve Plus Flexible Payment (note a) 0
" IC-Q-Installment (note a) 0
" IC-Q-Ins (note a) 0
" IC-Q-Ins Emp (note a) 0
" IC-1 (note a) 12
" IC-1-Emp (note a) 0
" RP-Q-Installment (note a) 0
" RP-Q-Flexible Payment (note a) 0
" RP-Q-Ins (note a) 0
" RP-Q-Ins Emp (note a) 0
" RP-1 (note a) 0
" RP-1-Emp (note a) 0
----------
Total 13,877
----------
Reserve for accrued extra contribution 3rd year 2,581
Reserve for accrued extra contribution 6th year 914
Accrued interest on reserves in default I-76 3.5 3
Reserve for additional credits to be allowed Not Not
Installment Certificates-Special Additional Readily Applicable
Credits I-76 Available 0
Accrued for additional credits to be allowed at
next anniversary 707
Reserve for death and disability refund options 0
Reserve for reconversion of paid-up certificates 50
----------
Total installment certificates 378,742
----------
/TABLE
<PAGE>
PAGE 76
<TABLE>
<CAPTION>
Additions
---------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
Description payment basis or income holders part 2)
- ----------- ------------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Additional credits and accrued interest
thereon:
" 15, includes extended maturities 2.5 0 0
" 20, " " " 2.5 17 Not 68
" 15A, " " " 3 10 Applicable 65
" 22A, " " " 3 263 1,452
" I-76, " " " 3.5 95 343
" Reserve Plus Flexible Payment (note a) 280 0
" IC-Q-Installment (note a) 323 0
" IC-Q-Ins (note a) 6,324 0
" IC-Q-Ins Emp (note a) 41 0
" IC-1 (note a) 752 0
" IC-1-Emp (note a) 10 0
" RP-Q-Installment (note a) 367 0
" RP-Q-Flexible Payment (note a) 54 0
" RP-Q-Ins (note a) 282 0
" RP-Q-Ins Emp (note a) 1 0
" RP-1 (note a) 20 0
" RP-1-Emp (note a) 0 0
---------- ----------
Total 8,839 1,928
---------- ----------
Reserve for accrued extra contribution 3rd year 4,238 (1,817) 0
Reserve for accrued extra contribution 6th year 577 (715) 0
Accrued interest on reserves in default I-76 3.5 10 0 1
Reserve for additional credits to be allowed
Installment Certificates-Special Additional
Credits I-76 0 0 0
Accrued for additional credits to be allowed at
next anniversary 916 0 0
Reserve for death and disability refund options 0 0 0
Reserve for reconversion of paid-up certificates 6 0 0
---------- ----------- ----------
Total installment certificates 16,724 112,063 13,818
---------- ----------- ----------
/TABLE
<PAGE>
PAGE 77
<TABLE>
<CAPTION>
Deductions
---------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
Description payment basis Maturities maturity part 2)
- ----------- ------------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Additional credits and accrued interest
thereon:
Series 15, includes extended maturities 2.5 0 0 0
" 20, " " " 2.5 93 55 287
" 15A, " " " 3 14 17 127
" 22A, " " " 3 541 551 1,543
" I-76, " " " 3.5 0 384 60
" Reserve Plus Flexible Payment (note a) 0 0 280
" IC-Q-Installment (note a) 0 0 323
" IC-Q-Ins (note a) 0 0 6,324
" IC-Q-Ins Emp (note a) 0 0 41
" IC-1 (note a) 0 0 715
" IC-1-Emp (note a) 0 0 10
" RP-Q-Installment (note a) 0 0 367
" RP-Q-Flexible Payment (note a) 0 0 54
" RP-Q-Ins (note a) 0 0 282
" RP-Q-Ins Emp (note a) 0 0 1
" RP-1 (note a) 0 0 19
" RP-1-Emp (note a) 0 0 0
---------- ---------- ----------
Total 648 1,007 10,433
---------- ---------- ----------
Reserve for accrued extra contribution 3rd year 0 0 0
Reserve for accrued extra contribution 6th year 0 0 0
Accrued interest on reserves in default I-76 3.5 0 2 9
Reserve for additional credits to be allowed
Installment Certificates-Special Additional
Credits I-76 0 0 0
Accrued for additional credits to be allowed at
next anniversary 0 0 1,352
Reserve for death and disability refund options 0 0 0
Reserve for reconversion of paid-up certificates 0 0 5
---------- ---------- ----------
Total installment certificates 14,517 111,580 22,049
---------- ---------- ----------
/TABLE
<PAGE>
PAGE 78
<TABLE>
<CAPTION>
Balance at close of period
---------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Additional credits and accrued interest
thereon:
Series 15, includes extended maturities 2.5 0
" 20, " " " 2.5 Not Not 601
" 15A, " " " 3 Readily Applicable 328
" 22A, " " " 3 Available 8,763
" I-76, " " " 3.5 2,814
" Reserve Plus Flexible Payment (note a) 0
" IC-Q-Installment (note a) 0
" IC-Q-Ins (note a) 0
" IC-Q-Ins Emp (note a) 0
" IC-1 (note a) 49
" IC-1-Emp (note a) 0
" RP-Q-Installment (note a) 0
" RP-Q-Flexible Payment (note a) 0
" RP-Q-Ins (note a) 0
" RP-Q-Ins Emp (note a) 0
" RP-1 (note a) 1
" RP-1-Emp (note a) 0
-----------
Total 12,556
-----------
Reserve for accrued extra contribution 3rd year 5,002
Reserve for accrued extra contribution 6th year 776
Accrued interest on reserves in default I-76 3.5 3
Reserve for additional credits to be allowed
Installment Certificates-Special Additional Not Not
Credits I-76 Readily Applicable 0
Accrued for additional credits to be allowed at Available
next anniversary 271
Reserve for death and disability refund options 0
Reserve for reconversion of paid-up certificates 51
-----------
Total installment certificates 373,201
-----------
/TABLE
<PAGE>
PAGE 79
<TABLE>
<CAPTION>
Balance at beginning of period
--------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Fully paid certificates:
Single-payment certificates:
SP 74 3.5 430 4,139 3,857
SP 75 3.5 2,622 26,550 24,224
SP 76 3.5 656 5,603 4,910
SP 77 3.5 795 5,685 4,828
SP 78 3.5 873 7,256 5,964
SP 79 3.5 1,025 8,217 6,539
SP 80 3.5 1,013 8,384 6,431
SP 81A 3.5 955 6,982 5,162
SP 82A 3.5 1,038 10,832 7,750
SP 82B 3.5 1,997 21,743 15,392
SP 83A 3.5 322 2,928 2,043
SP 83B 3.5 719 7,629 5,235
IC-2-84 3.5 3,666 41,689 27,651
IC-2-85 3.5 1,841 23,501 19,406
IC-2-86 3.5 920 12,884 9,553
IC-2-87 3.5 1,255 19,503 13,536
IC-2-88 3.5 2,288 40,172 25,202
Reserve Plus Single Payment (note a) 2,954 15,045 22,348
Cash Reserve Single Payment (note b) 110 482 507
IC-Flexible Savings (formerly Variable Term) (note d) 65,005 561,514 633,067
IC-Flexible Savings Emp (formerly Variable Term) (note d) 1,787 19,015 21,258
IC-Investors (note d) 317 315,666 327,862
IC-Special Deposits (note d) 23 29,672 30,349
IC-1-84 (note c) 206 1,102 1,426
Cash Reserve Variable Payment (note b) 1,439 7,499 9,492
Cash Reserve Variable Payment-3mo. (note e) 46,617 297,951 313,389
IC-Future Value (note f) 8,336 74,528 74,528
IC-Future Value Emp (note f) 166 1,191 1,192
IC-Stock Market (note g) 20,743 385,034 389,142
---------- ---------- ----------
Total 170,118 1,962,396 2,012,243
---------- ---------- ----------
/TABLE
<PAGE>
PAGE 80
<TABLE>
<CAPTION>
Additions
---------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
Description payment basis or income holders part 2)
- ----------- ------------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Fully paid certificates:
Single-payment certificates:
SP 74 3.5 128 0 0
SP 75 3.5 811 0 0
SP 76 3.5 162 0 0
SP 77 3.5 156 0 0
SP 78 3.5 197 0 0
SP 79 3.5 217 0 0
SP 80 3.5 208 0 0
SP 81A 3.5 161 0 0
SP 82A 3.5 241 0 0
SP 82B 3.5 430 0 0
SP 83A 3.5 63 0 0
SP 83B 3.5 152 0 0
IC-2-84 3.5 783 0 0
IC-2-85 3.5 0 0 849
IC-2-86 3.5 0 0 402
IC-2-87 3.5 0 0 567
IC-2-88 3.5 0 0 1,072
Reserve Plus Single Payment (note a) 0 21 540
Cash Reserve Single Payment (note b) 0 0 12
IC-Flexible Savings (formerly Variable Term) (note d) 0 175,315 21,325
IC-Flexible Savings Emp (formerly Variable Term) (note d) 0 4,218 862
IC-Investors (note d) 0 180,911 8,769
IC-Special Deposits (note d) 0 8,368 756
IC-1-84 (note c) 0 0 76
Cash Reserve Variable Payment (note b) 0 1,141 229
Cash Reserve Variable Payment-3mo. (note e) 0 312,948 8,693
IC-Future Value (note f) 0 9,877 0
IC-Future Value Emp (note f) 0 161 0
IC-Stock Market (note g) 0 131,537 25,269
---------- ----------- ----------
Total 3,709 824,497 69,421
---------- ----------- ----------
/TABLE
<PAGE>
PAGE 81
<TABLE>
<CAPTION>
Deductions
---------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
Description payment basis Maturities maturity part 2)
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Fully paid certificates:
Single-payment certificates:
SP 74 3.5 0 328 82
SP 75 3.5 0 1,413 571
SP 76 3.5 0 670 24
SP 77 3.5 0 748 4
SP 78 3.5 0 763 0
SP 79 3.5 0 815 41
SP 80 3.5 0 913 0
SP 81A 3.5 0 1,257 0
SP 82A 3.5 0 2,407 38
SP 82B 3.5 0 5,392 14
SP 83A 3.5 0 507 0
SP 83B 3.5 0 1,692 45
IC-2-84 3.5 0 9,421 46
IC-2-85 3.5 0 6,324 30
IC-2-86 3.5 0 2,946 0
IC-2-87 3.5 0 4,482 146
IC-2-88 3.5 0 8,311 70
Reserve Plus Single Payment (note a) 0 6,891 17
Cash Reserve Single Payment (note b) 0 151 0
IC-Flexible Savings (formerly Variable Term) (note d) 0 345,989 0
IC-Flexible Savings Emp (formerly Variable Term) (note d) 0 9,533 0
IC-Investors (note d) 0 248,121 0
IC-Special Deposits (note d) 0 21,362 0
IC-1-84 (note c) 0 370 0
Cash Reserve Variable Payment (note b) 0 3,558 0
Cash Reserve Variable Payment-3mo. (note e) 8,828 351,291 0
IC-Future Value (note f) 81 3,251 0
IC-Future Value Emp (note f) 0 16 0
IC-Stock Market (note g) 0 197,593 0
---------- ---------- ----------
Total 8,909 1,236,515 1,128
---------- ---------- ----------
/TABLE
<PAGE>
PAGE 82
<TABLE>
<CAPTION>
Balance at close of period
---------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Fully paid certificates:
Single-payment certificates:
SP 74 3.5 399 3,706 3,575
SP 75 3.5 2,449 24,410 23,051
SP 76 3.5 596 4,826 4,378
SP 77 3.5 693 4,814 4,232
SP 78 3.5 780 6,345 5,398
SP 79 3.5 916 7,163 5,900
SP 80 3.5 874 7,214 5,726
SP 81A 3.5 756 5,310 4,066
SP 82A 3.5 741 7,488 5,546
SP 82B 3.5 1,415 14,223 10,416
SP 83A 3.5 247 2,214 1,599
SP 83B 3.5 518 5,139 3,650
IC-2-84 3.5 2,544 27,624 18,967
IC-2-85 3.5 1,324 16,134 13,901
IC-2-86 3.5 667 9,011 7,009
IC-2-87 3.5 863 13,110 9,475
IC-2-88 3.5 1,629 27,321 17,893
Reserve Plus Single Payment (note a) 2,190 10,855 16,001
Cash Reserve Single Payment (note b) 83 350 368
IC-Flexible Savings (formerly Variable Term) (note d) 58,048 433,770 483,718
IC-Flexible Savings Emp (formerly Variable Term) (note d) 1,446 14,944 16,805
IC-Investors (note d) 254 261,159 269,421
IC-Special Deposits (note d) 13 17,436 18,111
IC-1-84 (note c) 168 905 1,132
Cash Reserve Variable Payment (note b) 1,118 2,789 7,304
Cash Reserve Variable Payment-3mo. (note e) 44,436 272,413 283,739
IC-Future Value (note f) 7,702 72,326 72,326
IC-Future Value Emp (note f) 169 1,256 1,256
IC-Stock Market (note g) 28,736 335,821 348,355
---------- ----------- -----------
Total 161,774 1,610,076 1,663,318
---------- ----------- -----------
/TABLE
<PAGE>
PAGE 83
<TABLE>
<CAPTION>
Balance at beginning of period
--------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Additional credits and accrued interest thereon:
SP 74 3.5 Applicable Applicable 4,121
SP 75 3.5 26,098
SP 76 3.5 5,258
SP 77 3.5 4,746
SP 78 3.5 5,303
SP 79 3.5 5,332
SP 80 3.5 4,937
SP 81A 3.5 3,313
SP 82A 3.5 4,902
SP 82B 3.5 9,055
SP 83A 3.5 897
SP 83B 3.5 2,194
IC-2-84 3.5 11,884
IC-2-85 3.5 352
IC-2-86 3.5 153
IC-2-87 3.5 215
IC-2-88 3.5 431
Reserve Plus Single Payment (note a) 0
Cash Reserve Single Payment (note b) 0
IC-Flexible Savings (formerly Variable Term) (note d) 1,255
IC-Flexible Savings Emp (formerly Variable Term) (note d) 48
IC-Investors (note d) 406
IC-Special Deposits (note d) 21
IC-1-84 (note c) 46
Cash Reserve Variable Payment (note b) 0
Cash Reserve Variable Payment-3mo. (note e) 386
IC-Future Value (note f) 19,476
IC-Future Value Emp (note f) 210
IC-Stock Market (note g) 8,106
-----------
Total 119,145
-----------
/TABLE
<PAGE>
PAGE 84
<TABLE>
<CAPTION>
Additions
---------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
Description payment basis or income holders part 2)
- ----------- ------------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Additional credits and accrued interest thereon:
SP 74 3.5 142 0 167
SP 75 3.5 889 0 986
SP 76 3.5 178 0 262
SP 77 3.5 157 0 229
SP 78 3.5 180 0 273
SP 79 3.5 182 0 257
SP 80 3.5 165 0 264
SP 81A 3.5 105 0 97
SP 82A 3.5 154 0 108
SP 82B 3.5 260 0 283
SP 83A 3.5 29 0 36
SP 83B 3.5 66 0 73
IC-2-84 3.5 345 0 419
IC-2-85 3.5 581 0 0
IC-2-86 3.5 294 0 0
IC-2-87 3.5 400 0 0
IC-2-88 3.5 751 0 0
Reserve Plus Single Payment (note a) 540 0 0
Cash Reserve Single Payment (note b) 12 0 0
IC-Flexible Savings (formerly Variable Term) (note d) 25,869 0 0
IC-Flexible Savings Emp (formerly Variable Term) (note d) 1,014 0 0
IC-Investors (note d) 9,749 0 0
IC-Special Deposits (note d) 882 0 0
IC-1-84 (note c) 59 0 (12)
Cash Reserve Variable Payment (note b) 243 0 0
Cash Reserve Variable Payment-3mo. (note e) 8,872 0 0
IC-Future Value (note f) 7,540 0 (1)
IC-Future Value Emp (note f) 119 0 0
IC-Stock Market (note g) 7,982 2 0
----------- ----------- ----------
Total 67,759 2 3,441
----------- ----------- ----------
/TABLE
<PAGE>
PAGE 85
<TABLE>
<CAPTION>
Deductions
---------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
Description payment basis Maturities maturity part 2)
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Additional credits and accrued interest thereon:
SP 74 3.5 0 296 70
SP 75 3.5 0 1,406 630
SP 76 3.5 0 757 29
SP 77 3.5 0 763 4
SP 78 3.5 0 710 0
SP 79 3.5 0 634 36
SP 80 3.5 0 739 0
SP 81A 3.5 0 831 0
SP 82A 3.5 0 1,568 22
SP 82B 3.5 0 3,292 10
SP 83A 3.5 0 228 0
SP 83B 3.5 0 702 22
IC-2-84 3.5 0 4,205 22
IC-2-85 3.5 0 46 623
IC-2-86 3.5 0 26 305
IC-2-87 3.5 0 29 433
IC-2-88 3.5 0 70 805
Reserve Plus Single Payment (note a) 0 0 540
Cash Reserve Single Payment (note b) 0 0 12
IC-Flexible Savings (formerly Variable Term) (note d) 0 5,006 21,350
IC-Flexible Savings Emp (formerly Variable Term) (note d) 0 168 862
IC-Investors (note d) 0 1,073 8,769
IC-Special Deposits (note d) 0 138 756
IC-1-84 (note c) 0 5 64
Cash Reserve Variable Payment (note b) 0 14 229
Cash Reserve Variable Payment-3mo. (note e) 0 264 8,697
IC-Future Value (note f) 4,448 868 (1)
IC-Future Value Emp (note f) 47 4 0
IC-Stock Market (note g) 0 626 12,435
---------- ---------- ----------
Total 4,495 24,468 56,724
---------- ---------- ----------
/TABLE
<PAGE>
PAGE 86
<TABLE>
<CAPTION>
Balance at close of period
---------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Additional credits and accrued interest thereon:
SP 74 3.5 Not Not 4,064
SP 75 3.5 Applicable Applicable 25,937
SP 76 3.5 4,912
SP 77 3.5 4,365
SP 78 3.5 5,046
SP 79 3.5 5,101
SP 80 3.5 4,627
SP 81A 3.5 2,684
SP 82A 3.5 3,574
SP 82B 3.5 6,296
SP 83A 3.5 734
SP 83B 3.5 1,609
IC-2-84 3.5 8,421
IC-2-85 3.5 264
IC-2-86 3.5 116
IC-2-87 3.5 153
IC-2-88 3.5 307
Reserve Plus Single Payment (note a) 0
Cash Reserve Single Payment (note b) 0
IC-Flexible Savings (formerly Variable Term) (note d) 768
IC-Flexible Savings Emp (formerly Variable Term) (note d) 32
IC-Investors (note d) 313
IC-Special Deposits (note d) 9
IC-1-84 (note c) 24
Cash Reserve Variable Payment (note b) 0
Cash Reserve Variable Payment-3mo. (note e) 297
IC-Future Value (note f) 21,700
IC-Future Value Emp (note f) 278
IC-Stock Market (note g) 3,029
-----------
Total 104,660
-----------
/TABLE
<PAGE>
PAGE 87
<TABLE>
<CAPTION>
Balance at beginning of period
--------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Accrued for additional credits to be allowed
at next anniversaries:
SP 74 Applicable Applicable 123
SP 75 383
SP 76 154
SP 77 131
SP 78 154
SP 79 129
SP 80 143
SP 81A 64
SP 82A 36
SP 82B 234
SP 83A 21
SP 83B 52
IC-2-84 309
IC-2-85 149
IC-2-86 53
IC-2-87 85
IC-2-88 167
IC-Stock Market 7,220
-----------
Total 9,607
-----------
/TABLE
<PAGE>
PAGE 88
<TABLE>
<CAPTION>
Additions
---------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
Description payment basis or income holders part 2)
- ----------- ------------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Accrued for additional credits to be allowed
at next anniversaries:
SP 74 94 0 0
SP 75 771 0 0
SP 76 184 0 0
SP 77 157 0 0
SP 78 188 0 0
SP 79 185 0 0
SP 80 186 0 0
SP 81A 43 0 0
SP 82A 74 0 0
SP 82B 82 0 0
SP 83A 19 0 0
SP 83B 27 0 0
IC-2-84 151 0 0
IC-2-85 99 0 0
IC-2-86 52 0 0
IC-2-87 61 0 0
IC-2-88 122 0 0
IC-Stock Market 11,511 0 0
----------- ----------- ----------
Total 14,006 0 0
----------- ----------- ----------
/TABLE
<PAGE>
PAGE 89
<TABLE>
<CAPTION>
Deductions
---------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
Description payment basis Maturities maturity part 2)
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Accrued for additional credits to be allowed
at next anniversaries:
SP 74 0 0 167
SP 75 0 0 986
SP 76 0 0 262
SP 77 0 0 229
SP 78 0 0 273
SP 79 0 0 257
SP 80 0 0 264
SP 81A 0 0 97
SP 82A 0 0 108
SP 82B 0 0 283
SP 83A 0 0 36
SP 83B 0 0 73
IC-2-84 0 0 419
IC-2-85 0 0 226
IC-2-86 0 0 97
IC-2-87 0 0 134
IC-2-88 0 0 267
IC-Stock Market 0 20 12,835
---------- ---------- ----------
Total 0 20 17,013
---------- ---------- ----------
/TABLE
<PAGE>
PAGE 90
<TABLE>
<CAPTION>
Balance at close of period
---------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Accrued for additional credits to be allowed
at next anniversaries:
SP 74 Applicable Applicable 50
SP 75 168
SP 76 76
SP 77 59
SP 78 69
SP 79 57
SP 80 65
SP 81A 10
SP 82A 2
SP 82B 33
SP 83A 4
SP 83B 6
IC-2-84 41
IC-2-85 22
IC-2-86 8
IC-2-87 12
IC-2-88 22
IC-Stock Market 5,876
----------
Total 6,580
----------
/TABLE
<PAGE>
PAGE 91
<TABLE>
<CAPTION>
Balance at beginning of period
--------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
R Series Single-Payment certificates:
R-76 3.5 44 706 485
R-77 3.5 166 2,086 1,370
R-78 3.5 248 3,280 1,993
R-79 3.5 358 6,238 3,720
R-80 3.5 476 6,587 3,674
R-81 3.5 229 4,679 2,351
R-82A 3.5 973 10,109 4,544
RP-Q (note a) 2,141 4,588 8,952
R-II 3.5 816 10,725 3,708
RP-84 3.5 2,632 46,344 15,158
RP-85 3.5 778 5,336 4,381
RP-86 3.5 231 2,319 1,757
RP-87 3.5 537 4,715 3,249
RP-88 3.5 733 11,176 7,003
Cash Reserve RP (note b) 60 373 535
IC-Flexible Savings RP (formally Variable Term RP)(note d) 21,663 171,519 201,546
Cash Reserve RP-3 mo. (note e) 4,307 47,567 49,498
IC-Flexible Savings RP Emp (form. Var Term RP Emp)(note d) 581 6,857 8,162
RP-Future Value (note f) 7,977 97,294 97,294
RP-Future Value Emp (note f) 221 2,404 2,405
RP-Stock Market (note g) 5,654 54,557 55,879
D-1 (note a) 2,222 77,955 82,297
---------- ---------- ----------
Total 53,047 577,414 559,961
---------- ---------- ----------
/TABLE
<PAGE>
PAGE 92
<TABLE>
<CAPTION>
Additions
---------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
Description payment basis or income holders part 2)
- ----------- ------------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
R Series Single-Payment certificates:
R-76 3.5 0 0 30
R-77 3.5 0 0 81
R-78 3.5 0 0 125
R-79 3.5 0 0 223
R-80 3.5 0 0 230
R-81 3.5 0 0 103
R-82A 3.5 0 0 233
RP-Q (note a) 0 0 208
R-II 3.5 0 0 164
RP-84 3.5 0 0 654
RP-85 3.5 0 0 206
RP-86 3.5 0 0 79
RP-87 3.5 0 0 150
RP-88 3.5 0 0 327
Cash Reserve RP (note b) 0 7 12
IC-Flexible Savings RP (formally Variable Term RP)(note d) 0 30,969 7,442
Cash Reserve RP-3 mo. (note e) 0 59,715 1,361
IC-Flexible Savings RP Emp (form. Var Term RP Emp)(note d) 0 1,085 373
RP-Future Value (note f) 0 6,706 0
RP-Future Value Emp (note f) 0 117 0
RP-Stock Market (note g) 0 16,812 3,795
D-1 (note a) 0 51,419 3,887
----------- ----------- ----------
Total 0 166,830 19,683
----------- ----------- ----------
/TABLE
<PAGE>
PAGE 93
<TABLE>
<CAPTION>
Deductions
---------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
Description payment basis Maturities maturity part 2)
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
R Series Single-Payment certificates:
R-76 3.5 0 140 0
R-77 3.5 0 387 0
R-78 3.5 0 446 0
R-79 3.5 0 1,024 15
R-80 3.5 0 691 0
R-81 3.5 0 903 0
R-82A 3.5 0 1,583 103
RP-Q (note a) 0 3,185 3
R-II 3.5 0 1,574 0
RP-84 3.5 0 6,250 48
RP-85 3.5 0 1,366 0
RP-86 3.5 0 435 0
RP-87 3.5 0 1,094 179
RP-88 3.5 0 3,429 0
Cash Reserve RP (note b) 0 316 0
IC-Flexible Savings RP (formally Variable Term RP)(note d) 0 106,872 0
Cash Reserve RP-3 mo. (note e) 0 65,127 0
IC-Flexible Savings RP Emp (form. Var Term RP Emp)(note d) 0 3,430 0
RP-Future Value (note f) 10,916 2,799 0
RP-Future Value Emp (note f) 86 1 0
RP-Stock Market (note g) 0 22,040 0
D-1 (note a) 4 49,223 0
---------- ---------- ----------
Total 11,006 272,315 348
---------- ---------- ----------
/TABLE
<PAGE>
PAGE 94
<TABLE>
<CAPTION>
Balance at close of period
---------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
R Series Single-Payment certificates:
R-76 3.5 36 515 375
R-77 3.5 134 1,524 1,064
R-78 3.5 198 2,588 1,672
R-79 3.5 289 4,598 2,904
R-80 3.5 393 5,413 3,213
R-81 3.5 156 2,948 1,551
R-82A 3.5 669 6,558 3,091
RP-Q (note a) 1,508 2,988 5,972
R-II 3.5 518 6,385 2,298
RP-84 3.5 1,776 27,934 9,514
RP-85 3.5 545 3,749 3,221
RP-86 3.5 170 1,768 1,401
RP-87 3.5 369 2,946 2,126
RP-88 3.5 506 5,928 3,901
Cash Reserve RP (note b) 41 149 238
IC-Flexible Savings RP (formally Variable Term RP)(note d) 15,573 114,291 133,085
Cash Reserve RP-3 mo. (note e) 3,878 43,969 45,447
IC-Flexible Savings RP Emp (form. Var Term RP Emp)(note d) 470 5,174 6,190
RP-Future Value (note f) 7,307 90,285 90,285
RP-Future Value Emp (note f) 218 2,435 2,435
RP-Stock Market (note g) 6,297 51,313 54,446
D-1 (note a) 239 83,696 88,376
---------- ---------- ----------
Total 41,290 467,154 462,805
---------- ---------- ----------
/TABLE
<PAGE>
PAGE 95
<TABLE>
<CAPTION>
Balance at beginning of period
--------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value Reserves
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Additional Interest on R-Series Single
Payment Reserves:
R-76 3.5 Not Not 25
R-77 3.5 Applicable Applicable 38
R-78 3.5 81
R-79 3.5 128
R-80 3.5 143
R-81 3.5 52
R-82A 3.5 193
RP-Q (note a) 0
R-II 3.5 115
RP-84 3.5 437
RP-85 3.5 137
RP-86 3.5 38
RP-87 3.5 94
RP-88 3.5 204
Cash Reserve RP (note b) 0
IC-Flexible Savings RP (formally Variable Term RP)(note d) 433
Cash Reserve RP-3 mo. (note e) 66
IC-Flexible Savings RP Emp (form. Var Term RP Emp)(note d) 19
RP-Future Value (note f) 28,557
RP-Future Value Emp (note f) 743
RP-Stock Market (note g) 2,057
D-1 (note a) 0
-----------
Total 33,560
-----------
-----------
Total single payment 2,734,516
-----------
Paid-up certificates:
Series 15 and 20 3.25 151 1,496 1,397
" 15A and 22A 3.5 2,721 17,829 15,620
" I-76 3.5 981 5,145 2,860
----------- ----------- -----------
Total 3,853 24,470 19,877
----------- ----------- -----------
/TABLE
<PAGE>
PAGE 96
<TABLE>
<CAPTION>
Additions
---------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
Description payment basis or income holders part 2)
- ----------- ------------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Additional Interest on R-Series Single
Payment Reserves:
R-76 3.5 21 0 0
R-77 3.5 70 0 0
R-78 3.5 104 0 0
R-79 3.5 192 0 0
R-80 3.5 191 0 0
R-81 3.5 89 0 0
R-82A 3.5 150 0 0
RP-Q (note a) 208 0 0
R-II 3.5 119 0 0
RP-84 3.5 471 0 0
RP-85 3.5 153 0 0
RP-86 3.5 68 0 0
RP-87 3.5 108 0 0
RP-88 3.5 228 0 0
Cash Reserve RP (note b) 12 0 0
IC-Flexible Savings RP (formally Variable Term RP)(note d) 8,124 0 0
Cash Reserve RP-3 mo. (note e) 1,378 0 0
IC-Flexible Savings RP Emp (form. Var Term RP Emp)(note d) 415 0 0
RP-Future Value (note f) 10,308 0 0
RP-Future Value Emp (note f) 297 0 0
RP-Stock Market (note g) 3,157 0 0
D-1 (note a) 4,284 0 0
----------- ----------- -----------
Total 30,147 0 0
----------- ----------- -----------
---------- ----------- ----------
Total single payment 115,621 991,329 92,545
---------- ----------- ----------
Paid-up certificates:
Series 15 and 20 3.25 44 0 391
" 15A and 22A 3.5 506 0 3,683
" I-76 3.5 92 0 375
----------- ----------- ----------
Total 642 0 4,449
----------- ----------- ----------
/TABLE
<PAGE>
PAGE 97
<TABLE>
<CAPTION>
Deductions
---------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
Description payment basis Maturities maturity part 2)
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Additional Interest on R-Series Single
Payment Reserves:
R-76 3.5 0 1 30
R-77 3.5 0 5 81
R-78 3.5 0 6 125
R-79 3.5 0 15 223
R-80 3.5 0 9 230
R-81 3.5 0 8 103
R-82A 3.5 0 11 237
RP-Q (note a) 0 0 208
R-II 3.5 0 14 164
RP-84 3.5 0 45 654
RP-85 3.5 0 11 206
RP-86 3.5 0 4 79
RP-87 3.5 0 7 150
RP-88 3.5 0 20 327
Cash Reserve RP (note b) 0 0 12
IC-Flexible Savings RP (formally Variable Term RP)(note d) 0 888 7,442
Cash Reserve RP-3 mo. (note e) 0 29 1,361
IC-Flexible Savings RP Emp (form. Var Term RP Emp)(note d) 0 49 373
RP-Future Value (note f) 5,518 1,035 0
RP-Future Value Emp (note f) 45 0 0
RP-Stock Market (note g) 0 17 3,795
D-1 (note a) 0 397 3,887
---------- ---------- ----------
Total 5,563 2,571 19,687
---------- ---------- ----------
---------- ---------- ----------
Total single payment 29,973 1,535,889 94,900
---------- ---------- ----------
Paid-up certificates:
Series 15 and 20 3.25 125 49 302
" 15A and 22A 3.5 926 1,665 2,586
" I-76 3.5 0 722 90
---------- ---------- ----------
Total 1,051 2,436 2,978
---------- ---------- ----------
/TABLE
<PAGE>
PAGE 98
<TABLE>
<CAPTION>
Balance at close of period
---------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Additional Interest on R-Series Single
Payment Reserves:
R-76 3.5 Not Not 15
R-77 3.5 Applicable Applicable 22
R-78 3.5 54
R-79 3.5 82
R-80 3.5 95
R-81 3.5 30
R-82A 3.5 95
RP-Q (note a) 0
R-II 3.5 56
RP-84 3.5 209
RP-85 3.5 73
RP-86 3.5 23
RP-87 3.5 45
RP-88 3.5 85
Cash Reserve RP (note b) 0
IC-Flexible Savings RP (formally Variable Term RP)(note d) 227
Cash Reserve RP-3 mo. (note e) 54
IC-Flexible Savings RP Emp (form. Var Term RP Emp)(note d) 12
RP-Future Value (note f) 32,312
RP-Future Value Emp (note f) 995
RP-Stock Market (note g) 1,402
D-1 (note a) 0
-----------
Total 35,886
-----------
----------
Total single payment 2,273,249
----------
Paid-up certificates:
Series 15 and 20 3.25 131 1,436 1,356
" 15A and 22A 3.5 2,277 16,510 14,632
" I-76 3.5 866 4,379 2,515
---------- ---------- ----------
Total 3,274 22,325 18,503
---------- ---------- ----------
/TABLE
<PAGE>
PAGE 99
<TABLE>
<CAPTION>
Balance at beginning of period
--------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Additional credits and accrued interest thereon:
Series 15 and 20 2.5 Not Not 75
" 15A and 22A 3 Applicable Applicable 856
" Series I-76 3.5 172
-----------
Total 1,103
-----------
Accrued for additional credits to be allowed
at next anniversaries 119
----------- ----------- -----------
Total paid-up 3,853 24,470 21,099
----------- ----------- -----------
Optional settlement certificates:
Series 1, IST&G 3 24 34
Other series and conversions from Single
Payment certificates 2.5-3-3-3.5 10,830 94,766
Series R-76 thru R-82A 3 137 815
Series R-II & RP-2-84 thru 88 3.5 186 3,504
Reserve Plus Single-Payment (note a) 579 6,229
Reserve Plus Flex-Pay & IC-Q-Inst (note a) 34 153
Series R-Installment (note a) 175 1,174
Series R-Single-Payment (note a) 127 751
Additional credits and accrued interest thereof 2.5-3 Not Not 13,191
Additional credits and accrued int. thereon-IST&G 2.5-3 Applicable Applicable 2
Accrued for additional credits to be allowed
at next anniversaries 1,115
Accrued for additional credits to be allowed
at next anniversaries-R-76 thru R-82A & R-II 26
Accrued for additional credits to be allowed
at next anniversaries-IST&G 0
----------- -----------
Total optional settlement 12,092 121,760
----------- -----------
Not
Due to unlocated certificate holders Applicable 355
-----------
Total certificate reserves 3,256,472
===========
/TABLE
<PAGE>
PAGE 100
<TABLE>
<CAPTION>
Additions
---------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
Description payment basis or income holders part 2)
- ----------- ------------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Additional credits and accrued interest thereon:
Series 15 and 20 2.5 2 0 15
" 15A and 22A 3 24 0 140
" Series I-76 3.5 6 0 32
----------- ----------- ----------
Total 32 0 187
----------- ----------- ----------
Accrued for additional credits to be allowed
at next anniversaries 130 0 0
----------- ----------- ----------
Total paid-up 804 0 4,636
----------- ----------- ----------
Optional settlement certificates:
Series 1, IST&G 3 1 0 0
Other series and conversions from Single
Payment certificates 2.5-3-3-3.5 2,621 (1) 9,188
Series R-76 thru R-82A 3 22 0 140
Series R-II & RP-2-84 thru 88 3.5 96 0 248
Reserve Plus Single-Payment (note a) 144 0 17
Reserve Plus Flex-Pay & IC-Q-Inst (note a) 5 0 67
Series R-Installment (note a) 36 0 188
Series R-Single-Payment (note a) 15 0 3
Additional credits and accrued interest thereon 2.5-3 336 0 2,104
Additional credits and accrued int. thereon-IST&G 2.5-3 0 0 1
Accrued for additional credits to be allowed
at next anniversaries 1,747 0 0
Accrued for additional credits to be allowed
at next anniversaries-R-76 thru R-82A & R-II 29 0 0
Accrued for additional credits to be allowed
at next anniversaries-IST&G 1 0 0
----------- ----------- ----------
Total optional settlement 5,053 (1) 11,956
----------- ----------- ----------
Not
Due to unlocated certificate holders Applicable 213
---------- ----------- ----------
Total certificate reserves 138,202 1,103,391 123,168
=========== =========== ===========
Provision for certificate reserves and additional
credits per Statement of Operations 124,500
Provision for reconversion applied against reserve
recoveries from terminations prior to maturity in
Statement of Operations 6
Income from purchased and written call options
included in provision for certificate reserves
in Statement of Operations 13,696
-----------
138,202
===========
/TABLE
<PAGE>
PAGE 101
<TABLE>
<CAPTION>
Deductions
---------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
Description payment basis Maturities maturity part 2)
- ----------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Additional credits and accrued interest thereon:
Series 15 and 20 2.5 11 3 11
" 15A and 22A 3 73 56 78
" Series I-76 3.5 0 32 1
---------- ---------- ----------
Total 84 91 90
---------- ---------- ----------
Accrued for additional credits to be allowed
at next anniversaries 0 0 187
---------- ---------- ----------
Total paid-up 1,135 2,527 3,255
---------- ---------- ----------
Optional settlement certificates:
Series 1, IST&G 3 5 3 0
Other series and conversions from Single
Payment certificates 2.5-3-3-3.5 6,352 11,532 0
Series R-76 thru R-82A 3 164 120 0
Series R-II & RP-2-84 thru 88 3.5 306 1,243 0
Reserve Plus Single-Payment (note a) 220 2,133 0
Reserve Plus Flex-Pay & IC-Q-Inst (note a) 36 30 0
Series R-Installment (note a) 199 164 0
Series R-Single-Payment (note a) 180 315 0
Additional credits and accrued interest thereon 2.5-3 1,051 866 634
Additional credits and accrued int. thereon-IST&G 2.5-3 1 0 0
Accrued for additional credits to be allowed
at next anniversaries 59 (1) 2,122
Accrued for additional credits to be allowed
at next anniversaries-R-76 thru R-82A & R-II 8 1 39
Accrued for additional credits to be allowed
at next anniversaries-IST&G 0 0 1
---------- ---------- ----------
Total optional settlement 8,581 16,406 2,796
---------- ---------- ----------
Not
Due to unlocated certificate holders Applicable 174
---------- ---------- ----------
Total certificate reserves 54,206 1,666,402 123,174
=========== =========== ===========
/TABLE
<PAGE>
PAGE 102
<TABLE>
<CAPTION>
Balance at close of period
---------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
- ----------- ------------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Additional credits and accrued interest thereon:
Series 15 and 20 2.5 Not Not 67
" 15A and 22A 3 Applicable Applicable 813
" Series I-76 3.5 177
----------
Total 1,057
----------
Accrued for additional credits to be allowed
at next anniversaries 62
---------- ---------- ----------
Total paid-up 3,274 22,325 19,622
---------- ---------- ----------
Optional settlement certificates:
Series 1, IST&G 3 19 27
Other series and conversions from Single
Payment certificates 2.5-3-3-3.5 9,952 88,690
Series R-76 thru R-82A 3 116 693
Series R-II & RP-2-84 thru 88 3.5 113 2,299
Reserve Plus Single-Payment (note a) 401 4,037
Reserve Plus Flex-Pay & IC-Q-Inst (note a) 28 159
Series R-Installment (note a) 153 1,035
Series R-Single-Payment (note a) 80 274
Additional credits and accrued interest thereon 2.5-3 Not Not 13,080
Additional credits and accrued int. thereon-IST&G 2.5-3 Applicable Applicable 2
Accrued for additional credits to be allowed
at next anniversaries 682
Accrued for additional credits to be allowed
at next anniversaries-R-76 thru R-82A & R-II 7
Accrued for additional credits to be allowed
at next anniversaries-IST&G 0
---------- ----------
Total optional settlement 10,862 110,985
---------- ----------
Not
Due to unlocated certificate holders Applicable 394
----------
Total certificate reserves 2,777,451
==========
/TABLE
<PAGE>
PAGE 103
Notes:
(a) On these series of certificates, there is no minimum rate of accrual
of interest. Interest is declared for a quarter or quarters by IDSC
and credited to the reserves maintained at the end of each calendar
quarter.
(b) On these series of certificates, there is no minimum rate of accrual
of interest. Interest is declared for a quarter or quarters by IDSC
and credited to the reserves maintained or paid in cash at the end of
each calendar month.
(c) On these series of certificates, there is no minimum rate of accrual
of interest. Interest is declared by IDSC for the first four
certificate quarters, then annually thereafter, and credited to the
reserves maintained at the end of each certificate year.
(d) On this series of certificates, there is no minimum rate of accrual
of interest. Interest is declared for the term selected and credited
to the reserves maintained or paid in cash at the end of each
certificate month.
(e) On this series of certificates, there is no minimum rate of accrual
of interest. Interest is declared by IDSC for a three-month term and
credited to the reserves maintained or paid in cash at the end of
each certificate month.
(f) On this series of certificates, there is no minimum rate of accrual
of interest. Interest is declared by IDSC for a four, five, six,
seven, eight, nine or ten year maturity and credited to the reserves
maintained at maturity.
(g) On this series of certificates, the certificate holder may elect to
receive minimum interest only or minimum interest plus participation
interest. Minimum interest is declared by IDSC for a twelve-month
term and is credited to the reserves maintained at the end of each
certificate term. Participation interest is determined at the end of
each certificate term by multiplying the market participation rate in
effect at the beginning of the certificate term for each certificate
times any total percentage appreciation in a broad stock market
indicator subject to specified maximums. Participation interest is
credited to the reserves maintained at the end of each certificate
term.
<PAGE>
PAGE 104
<TABLE>
<CAPTION>
Part 2 - Description of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Year ended December 31, 1993
($ in thousands)
Additions to reserves charged to other accounts
------------------------------------------------------
Transfers of
maturities to
Reconversions extended
of paid-up maturities-
certificate charged to
charged Charged reserves to
to paid-up to mature, addi-
reserves and advance tional credits/
reserve for payments interest and
reconversions reserve advance payments Total
------------- -------- ---------------- -------
<C> <C> <C> <C> <C>
Reserves to mature installment
certificates:
Series 15, including extended
maturities 0 0 0 0
Series 20, including extended
maturities 13 31 10 54
Series 15A, including extended
maturities 110 24 34 168
Series 22A, including extended
maturities 680 535 1,781 2,996
Series I-76 72 43 0 115
Series Reserve Plus Flexible
Payment 0 0 279 279
Series IC-Q-Installment 0 0 322 322
Series IC-Q-Ins 0 0 6,322 6,322
Series IC-Q-Ins Emp 0 0 41 41
Series IC-1 0 0 716 716
Series IC-1 Emp 0 0 10 10
Series RP-Q-Installment 0 0 367 367
Series RP-Q-Flexible Payment 0 0 54 54
Series RP-Q-Ins 0 0 282 282
Series RP-Q-Ins Emp 0 0 1 1
Series RP-1 0 0 19 19
------------ --------- --------------- --------
Total 875 633 10,238 11,746
============= ========= =============== ========
/TABLE
<PAGE>
PAGE 105
<TABLE>
<CAPTION>
Part 2 - Description of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Year ended December 31, 1993
($ in thousands)
Deductions from reserves credited to other accounts
----------------------------------------------------
Conversions
to optional Maturities
settlement transferred
Conversions certificates- to extended
to paid-up credited maturities-
certificates- to optional credited to
credited settlement reserves to
to paid-up reserves and mature-
surrender surrender extended
income income maturities Total
----------- ------------ ----------- ------
<S> <C> <C> <C> <C>
Reserves to mature installment
certificates:
Series 15, including extended
maturities 0 0 0 0
Series 20, including extended
maturities 316 797 10 1,123
Series 15A, including extended
maturities 248 359 34 641
Series 22A, including extended
maturities 2,828 2,391 1,781 7,000
Series I-76 311 7 0 318
Series Reserve Plus Flexible
Payment 0 60 0 60
Series IC-Q-Installment 0 7 0 7
Series IC-Q-Ins 0 0 0 0
Series IC-Q-Ins Emp 0 0 0 0
Series IC-1 0 0 0 0
Series IC-1 Emp 0 0 0 0
Series RP-Q-Installment 0 188 0 188
Series RP-Q-Flexible Payment 0 0 0 0
Series RP-Q-Ins 0 0 0 0
Series RP-Q-Ins Emp 0 0 0 0
Series RP-1 0 0 0 0
----------- ------------ ----------- -------
Total 3,703 3,809 1,825 9,337
=========== ============ ============ =======
/TABLE
<PAGE>
PAGE 106
<TABLE>
<CAPTION>
Part 2 - Description of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Year ended December 31, 1993
($ in thousands)
Additions to reserves charged to other accounts
---------------------------------------------------------
Additions Additions to
to advance reserves to
Reconversions payments- mature-extended
of paid-up charged to maturities
Payments made in advance certificates- default charged to
of current certificate charged to interest reserves to
year requirements and paid-up on late mature from
accrued interest thereon: reserves payments maturity Total
------------- ---------- --------------- -----
<S> <C> <C> <C> <C>
Series 15, including extended
maturities 0 0 0 0
Series 20, including extended
maturities 0 0 6 6
Series 15A, including extended
maturities 12 0 1 13
Series 22A, including extended
maturities 58 2 54 114
Series I-76 7 3 0 10
Series Reserve Plus Flexible
Payment 0 0 0 0
Series IC-Q-Installment 0 0 0 0
Series IC-Q-Ins 0 0 0 0
Series IC-Q-Ins Emp 0 0 0 0
Series IC-1 0 0 0 0
Series IC-1 Emp 0 0 0 0
Series RP-Q-Installment 0 0 0 0
Series RP-Q-Flexible Payment 0 0 0 0
Series RP-Q-Ins 0 0 0 0
Series RP-Q-Ins Emp 0 0 0 0
Series RP-1 0 0 0 0
------------- ---------- --------------- ------
Total 77 5 61 143
============= =========== =============== ======
/TABLE
<PAGE>
PAGE 107
<TABLE>
<CAPTION>
Part 2 - Description of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Year ended December 31, 1993
($ in thousands)
Deductions from reserves credited to other accounts
-----------------------------------------------------------------------
Maturities
Conversions transferred
Applied to to optional to extended
certificates- settlement maturities- Conversions
credited to certificates- credited to to paid-up
Payments made in advance reserves to credited reserves certificates-
of current certificate mature, to optional to mature- credited to
year requirements and loading settlement extended paid-up
accrued interest thereon: and insurance reserves maturities reserves Total
------------- ------------- ----------- ------------- -----
<S> <C> <C> <C> <C> <C>
Series 15, including extended
maturities 0 0 0 0 0
Series 20, including extended
maturities 32 38 6 0 76
Series 15A, including extended
maturities 24 26 1 2 53
Series 22A, including extended
maturities 536 139 54 7 736
Series I-76 42 5 0 1 48
Series Reserve Plus Flexible
Payment 0 0 0 0 0
Series IC-Q-Installment 0 0 0 0 0
Series IC-Q-Ins 0 0 0 0 0
Series IC-Q-Ins Emp 0 0 0 0 0
Series IC-1 0 0 0 0 0
Series IC-1 Emp 0 0 0 0 0
Series RP-Q-Installment 0 0 0 0 0
Series RP-Q-Flexible Payment 0 0 0 0 0
Series RP-Q-Ins 0 0 0 0 0
Series RP-Q-Ins Emp 0 0 0 0 0
Series RP-1 0 0 0 0 0
------------- ------------- ----------- ------------- ------
Total 634 208 61 10 913
============= ============= =========== ============= ======
/TABLE
<PAGE>
PAGE 108
Certificate Reserves
($ in thousands)
Part 2 - Descriptions of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Additional credits on installment certificates and
accrued interest thereon:
Other additions are classified as follows:
Transfers from accruals for additional
credits to be allowed at next anniversaries $ 1,352
Reconversions of paid-up certificates-
charged to paid-up reserves 146
Transfers from maturities to extended maturities 430
------
Total 1,928
======
Other deductions are classified as follows:
Transfers to reserves on a quarterly basis for
Reserve Plus Flexible-Payment, IC-Q-Installment
and R-Flexible-Payment $ 8,416
Conversions to optional settlement certificates-
credited to optional settlement reserves 849
Conversions to paid-up certificates-credited to
paid-up reserve 738
Transfers to extended maturities at maturity 430
------
Total 10,433
======
Accrual for additional credits to be allowed on install-
ment certificates at next anniversaries:
Other deductions of $1,352 represent transfers to
reserves for additional credits on installment
certificates.
Reserve for death and disability refund options:
Other deductions of $-0- represent payments, in excess
of installment reserves, made to certificate holders
who exercised the death and disability refund options.
Reserve for reconversions of paid-up certificates:
The amount of $6 shown as charged to profit and loss has been
deducted from reserve recoveries in the accompanying Statement
of Operations.
Other deductions of $5 represent amounts credited to installment
certificate reserves to mature, on reconversions of paid-up
certificates.
<PAGE>
PAGE 109
Certificate Reserves
($ in thousands)
Part 2 - Descriptions of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Paid-up certificates:
Other additions of $4,636 represent $4,449 conversions from
installment certificates (charges to installment reserves
less surrender charges) and $187 transferred from accruals
for additional credits to be allowed at next anniversaries.
Other deductions of $3,255 represent $1,095 transfers credited to
installment reserves on reconversions to installment certifi-
cates, $187 transferred for accruals for additional credits and
accrued interest thereon and $1,973 transferred to settlement options.
Default interest on installment certificates:
Other additions of $1 represent reconversion of paid-up certificates
charged to paid-up reserves.
Other deductions of $9 represent $6 conversion to paid-up
certificates - credited to paid-up reserves, and $3 transferred
to advance payments as late payments are credited to certificates.
Optional settlement certificates:
Other additions of $11,956 represent $7,878 transferred from
installment certificate reserves (less surrender charges),
Single-Payment and Series D certificate reserves upon election of
optional settlement privileges, $1,973 transferred from paid-up
certificate reserve and $2,105 transferred from accruals for
additional credits to be allowed at next anniversaries.
Other deductions of $2,796 represent $2,123 transferred to reserves
for additional credits and accrued interest thereon, and $673
transferred to optional settlement reserves.
Single-Payment certificates:
Other additions of $92,545 represent $3,441 transferred from
accruals for additional credits to be allowed at next anniversaries
and transferred from accruals on a quarterly basis on Reserve Plus
Single-Payment $540, R82-B $208, Cash Reserve Single-Payment
$12, Cash Reserve $229, Cash Reserve 3mo. $8,693, Cash Reserve-
RP $12, Cash Reserve-RP-3mo. $1,361, Flexible Savings $21,325, Flexible
Savings Emp $862, Flexible Savings-RP $7,442, Flexible Savings-RP
Emp $373, Investors $8,769, Stock Market $11,264, AEBI Stock Market
$14,005, Stock Market RP $3,795 and Special Deposits $756 and $9,458
transferred from accruals at anniversaries and maintained in a separate
reserve account.
<PAGE>
PAGE 110
Certificate Reserves
($ in thousands)
Part 2 - Descriptions of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Other deductions of $94,900 represent $1,971 Single-Payment
and $352 Series D and R Single-Payment transferred to optional
settlement reserves, $3,441 transferred to reserves for additional
credits and accrued interest thereon, $9,458 transferred to a separate
reserve account from the accrual account and transferred to reserves on
a quarterly basis for Reserve Plus Single-Payment $540, R82-B $208,
Cash Reserve Single-Pay $12, Cash Reserve $229, Cash Reserve-3 $8,693,
Cash Reserve-Qualified $12, Cash Reserve-Qualified-3 $1,361, Flexible
Savings $21,325, Flexible Savings Employee $862, Flexible Savings
Qualified $7,442, Flexible Savings Qualified Emp $373, Investors $8,769,
Stock Market $11,264, AEBI Stock Market $14,005, Stock Market RP $3,795
and Special Deposits $756 and $32 transferred to Federal tax
withholding.
Due to unlocated certificate holders:
Other additions of $213 represent amounts equivalent to payments
due certificate holders who could not be located.
Other deductions of $174 represent payments to certificate holders
credited to cash.
<PAGE>
PAGE 111
<TABLE>
<CAPTION>
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 1993
Deductions from Reserves
------------------------
Number of Cash
Accounts with Amount of Amount of Surrenders
Months Certificate Holders Maturity Value Reserves Prior to
Certificate Series Paid December 31, December 31, December 31, Maturity Other
- ------------------ ------- ------------------- --------------------- ------------------- ---------- ----------
1992 1993 1992 1993 1992 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C>
15, including extended 61-72 1 1 5 5 1 1 0 0
maturities 73-84 0 0 0 0 0 0 0 0
85-96 0 0 0 0 0 0 0 0
97-108 1 0 5 0 2 0 0 0
109-120 0 1 0 5 0 2 0 0
121-132 0 0 0 0 0 0 0 0
133-144 0 0 0 0 0 0 0 0
145-156 0 0 0 0 0 0 0 0
157-168 0 0 0 0 0 0 0 0
169-180 (a) 0 0 0 0 0 0 0 0
181-192 0 0 0 0 0 0 0 0
193-204 0 0 0 0 0 0 0 0
205-216 0 0 0 0 0 0 0 0
217-228 0 0 0 0 0 0 0 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 2 2 10 10 3 3 0 0
------- ------- --------- --------- -------- -------- --------- ---------
/TABLE
<PAGE>
PAGE 112
<TABLE>
<CAPTION>
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 1993
Deductions from Reserves
------------------------
Number of Cash
Accounts with Amount of Amount of Surrenders
Months Certificate Holders Maturity Value Reserves Prior to
Certificate Series Paid December 31, December 31, December 31, Maturity Other
- ------------------ ------- ------------------- --------------------- ------------------- ---------- ----------
1992 1993 1992 1993 1992 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C>
20, including extended
maturities 85-96 0 0 0 0 0 0 0 0
97-108 0 0 0 0 0 0 0 0
109-120 0 0 0 0 0 0 0 0
121-132 1 0 6 0 3 0 0 0
133-144 0 1 0 6 0 3 0 0
145-156 0 0 0 0 0 0 0 0
157-168 0 0 0 0 0 0 0 0
169-180 1 0 7 0 5 0 0 0
181-192 2 1 25 8 18 5 0 7
193-204 1 2 10 25 8 19 0 0
205-216 1 1 5 10 4 8 0 0
217-228 2 1 13 5 7 5 0 0
229-240 (a) 4 1 20 7 20 7 0 15
241-252 2 3 58 56 31 32 0 0
253-264 1 1 14 18 8 11 0 0
265-276 5 1 70 14 45 9 0 9
277-288 5 4 85 56 58 39 0 29
289-300 4 3 61 35 44 25 0 7
301-312 9 3 110 46 85 36 11 18
313-324 15 7 165 78 141 64 7 5
325-336 98 15 1,278 173 1,128 157 6 141
337-348 93 81 1,233 1,040 1,141 966 38 81
349-360 (a) 98 85 1,253 1,109 1,228 1,084 152 811
------- ------- --------- --------- -------- -------- --------- ---------
Total 342 210 4,413 2,686 3,974 2,470 214 1,123
------- ------- --------- --------- -------- -------- --------- ---------
/TABLE
<PAGE>
PAGE 113
<TABLE>
<CAPTION>
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 1993
Deductions from Reserves
------------------------
Number of Cash
Accounts with Amount of Amount of Surrenders
Months Certificate Holders Maturity Value Reserves Prior to
Certificate Series Paid December 31, December 31, December 31, Maturity Other
- ------------------ ------- ------------------- --------------------- ------------------- ---------- ----------
1992 1993 1992 1993 1992 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
15A, including
extended maturities 61-72 0 1 0 17 0 5 0 0
73-84 0 0 0 0 0 0 0 0
85-96 0 0 0 0 0 0 0 0
97-108 1 0 8 0 4 0 0 0
109-120 0 1 0 8 0 5 0 0
121-132 0 0 0 0 0 0 0 0
133-144 1 0 66 0 48 0 0 0
145-156 4 2 99 88 80 71 0 0
157-168 6 5 76 104 66 90 0 0
169-180 (a) 8 4 60 48 55 47 11 47
181-192 1 2 11 12 7 8 23 0
193-204 10 3 178 63 131 64 0 65
205-216 60 8 999 152 781 118 7 166
217-228 35 53 493 787 415 657 33 37
229-240 40 30 426 376 386 340 8 95
241-252 27 36 313 364 306 355 15 231
------- ------- --------- --------- -------- -------- --------- ---------
Total 193 145 2,729 2,019 2,279 1,760 97 641
------- ------- --------- --------- -------- -------- --------- ---------
</TABLE>
<PAGE>
PAGE 114
<TABLE>
<CAPTION>
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 1993
Deductions from Reserves
------------------------
Number of Cash
Accounts with Amount of Amount of Surrenders
Months Certificate Holders Maturity Value Reserves Prior to
Certificate Series Paid December 31, December 31, December 31, Maturity Other
- ------------------ ------- ------------------- --------------------- ------------------- ---------- ----------
1992 1993 1992 1993 1992 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
22A 25-36 0 1 0 11 0 1 0 0
37-48 1 2 11 48 1 5 0 1
49-60 0 0 0 0 0 0 0 0
61-72 5 2 135 56 23 9 1 0
73-84 0 3 0 112 0 23 0 0
85-96 6 0 131 0 34 0 0 0
97-108 3 5 60 112 18 33 1 6
109-120 3 2 43 37 14 12 0 18
121-132 7 4 247 174 93 67 0 15
133-144 12 6 375 247 158 107 0 2
145-156 11 12 216 331 101 158 0 17
157-168 24 14 726 376 382 198 29 112
169-180 22 21 482 555 277 315 45 29
181-192 39 20 996 600 628 380 16 79
193-204 148 30 2,942 691 2,011 474 86 197
205-216 739 141 13,175 2,553 9,568 1,889 377 506
217-228 655 680 10,337 12,022 8,120 9,427 519 307
229-240 596 602 8,616 9,290 7,289 7,854 274 439
241-252 604 550 7,712 7,891 7,024 7,163 405 643
253-264 (a) 597 528 6,495 6,526 6,352 6,354 618 4,008
265-276 179 150 3,446 2,809 2,026 1,680 138 225
277-288 152 149 2,588 2,944 1,647 1,871 42 230
289-300 117 132 1,975 2,064 1,331 1,394 30 80
301-312 63 108 971 1,831 693 1,307 45 60
313-324 53 56 734 884 555 667 22 5
325-336 14 47 218 659 172 525 41 21
337-348 0 13 0 191 0 160 0 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 4,050 3,278 62,631 53,014 48,517 42,073 2,689 7,000
------- ------- --------- --------- -------- -------- --------- ---------
</TABLE>
<PAGE>
PAGE 115
<TABLE>
<CAPTION>
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 1993
Deductions from Reserves
------------------------
Number of Cash
Accounts with Amount of Amount of Surrenders
Months Certificate Holders Maturity Value Reserves Prior to
Certificate Series Paid December 31, December 31, December 31, Maturity Other
- ------------------ ------- ------------------- --------------------- ------------------- ---------- ----------
1992 1993 1992 1993 1992 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
I-76 25-36 0 0 0 0 0 0 0 0
37-48 2 0 92 0 7 0 0 0
49-60 0 2 0 92 0 7 0 0
61-72 3 1 96 123 10 14 0 6
73-84 3 2 74 62 9 9 2 0
85-96 4 4 169 135 27 21 5 10
97-108 3 1 129 15 24 3 0 11
109-120 19 2 409 68 86 14 3 22
121-132 74 14 1,919 280 463 65 43 29
133-144 224 62 6,252 1,608 1,649 434 207 44
145-156 235 187 5,779 5,084 1,683 1,489 217 29
157-168 288 206 6,951 5,093 2,233 1,635 218 31
169-180 317 255 6,901 6,025 2,437 2,121 296 72
181-192 292 271 6,620 5,701 2,619 2,193 450 30
193-204 147 242 3,310 5,345 1,310 2,243 265 34
205-216 0 134 0 3,146 0 1,403 37 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 1,611 1,383 38,701 32,777 12,557 11,651 1,743 318
------- ------- --------- --------- -------- -------- --------- ---------
Reserve Plus Flexible
Payment 85-96 0 0 0 0 0 0 0 0
97-108 740 0 8,132 0 3,442 0 0 0
109-120 1,602 524 15,488 5,767 7,844 2,474 1,137 0
121-132 331 317 3,355 3,021 1,764 1,626 1,408 60
133-148 0 284 0 2,824 0 1,510 482 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 2,673 1,125 26,975 11,612 13,050 5,610 3,027 60
------- ------- --------- --------- -------- -------- --------- ---------
</TABLE>
<PAGE>
PAGE 116
<TABLE>
<CAPTION>
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 1993
Deductions from Reserves
------------------------
Number of Cash
Accounts with Amount of Amount of Surrenders
Months Certificate Holders Maturity Value Reserves Prior to
Certificate Series Paid December 31, December 31, December 31, Maturity Other
- ------------------ ------- ------------------- --------------------- ------------------- ---------- ----------
1992 1993 1992 1993 1992 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
IC-Q-Installment 73-84 457 0 5,255 0 1,785 0 0 0
85-96 1,422 346 15,558 3,876 5,953 1,301 750 0
97-108 825 1,099 8,253 12,084 3,949 4,636 2,155 7
109-120 0 655 0 6,510 0 3,254 1,240 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 2,704 2,100 29,066 22,470 11,687 9,191 4,145 7
------- ------- --------- --------- -------- -------- --------- ---------
IC-Q-Ins 1-12 7,389 2 117,219 12 9,963 1 0 0
13-24 16,236 5,976 260,511 94,689 39,995 16,597 2,766 0
25-36 12,513 13,420 185,458 212,464 46,142 53,218 9,860 0
37-48 10,637 8,503 141,970 119,005 47,062 38,180 22,136 0
49-60 10,363 7,384 136,678 94,505 54,591 36,371 20,045 0
61-72 3,950 7,981 48,171 103,064 22,568 47,929 17,185 0
73-84 1,064 2,663 11,913 32,039 5,851 15,123 10,961 0
85-96 0 763 0 8,467 0 3,955 2,623 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 62,152 46,692 901,920 664,245 226,172 211,374 85,576 0
------- ------- --------- --------- -------- -------- --------- ---------
IC-Q-Ins Emp 1-12 78 1 1,547 6 93 0 0 0
13-24 129 47 1,903 1,027 253 115 33 0
25-36 55 98 555 1,435 152 337 84 0
37-48 42 40 536 417 187 157 56 0
49-60 47 33 668 394 253 156 75 0
61-72 26 42 317 589 179 237 73 0
73-84 0 21 0 277 0 171 34 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 377 282 5,526 4,145 1,117 1,173 355 0
------- ------- --------- --------- -------- -------- --------- ---------
IC-1 1-12 14,285 20,324 26,682 380,596 9,177 21,844 2,912 0
13-24 0 10,677 0 189,718 0 24,237 1,456 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 14,285 31,001 26,682 570,314 9,177 46,081 4,368 0
------- ------- --------- --------- -------- -------- --------- ---------
IC-1 Emp 1-12 178 150 448 178 112 158 98 0
13-24 0 106 0 5,616 0 218 105 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 178 256 448 5,794 112 376 203 0
------- ------- --------- --------- -------- -------- --------- ---------
/TABLE
<PAGE>
PAGE 117
<TABLE>
<CAPTION>
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 1993
Deductions from Reserves
------------------------
Number of Cash
Accounts with Amount of Amount of Surrenders
Months Certificate Holders Maturity Value Reserves Prior to
Certificate Series Paid December 31, December 31, December 31, Maturity Other
- ------------------ ------- ------------------- --------------------- ------------------- ---------- ----------
1992 1993 1992 1993 1992 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
R Flexible Payment 85-96 524 0 8,453 0 2,929 0 0 0
97-108 690 404 10,368 6,470 3,910 2,378 737 24
109-120 1,057 485 15,705 7,053 7,408 2,799 1,047 10
121-132 313 187 4,081 2,709 3,080 1,311 1,141 129
133-144 0 229 0 2,946 0 2,336 739 25
------- ------- --------- --------- -------- -------- --------- ---------
Total 2,584 1,305 38,607 19,178 17,327 8,824 3,664 188
------- ------- --------- --------- -------- -------- --------- ---------
RP-Q-Installment 73-84 183 0 2,951 0 738 0 0 0
85-96 130 153 2,667 2,439 1,138 660 192 0
97-108 0 101 0 2,338 0 1,017 251 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 313 254 5,618 4,777 1,876 1,677 443 0
------- ------- --------- --------- -------- -------- --------- ---------
RP-Q-Ins 1-12 120 1 5,300 49 512 3 0 0
13-24 352 99 13,394 4,803 1,794 876 41 0
25-36 349 286 8,871 10,218 1,830 2,352 402 0
37-48 346 255 7,093 5,775 1,879 1,436 865 0
49-60 450 225 7,722 3,937 2,831 1,329 865 0
61-72 173 324 2,474 4,897 1,029 2,152 1,051 0
73-84 58 107 794 1,590 300 771 479 0
85-96 0 42 0 556 0 224 97 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 1,848 1,339 45,648 31,825 10,175 9,143 3,800 0
------- ------- --------- --------- -------- -------- --------- ---------
RP-Q-Ins Emp 1-12 6 0 325 0 9 0 0 0
12-24 3 5 18 289 3 13 6 0
25-36 1 3 240 18 2 5 0 0
37-48 1 1 20 240 9 2 0 0
49-60 0 1 0 20 0 6 0 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 11 10 603 567 23 26 6 0
------- ------- --------- --------- -------- -------- --------- ---------
RP-1 1-12 175 158 622 5,368 287 335 31 0
13-24 0 162 0 5,901 0 826 52 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 175 320 622 11,269 287 1,161 83 0
------- ------- --------- --------- -------- -------- --------- ---------
RP-1 1-12 0 3 0 672 0 6 2 0
------- ------- --------- --------- -------- -------- --------- ---------
Total All Series 93,498 89,705 1,190,199 1,437,374 358,333 352,599 110,415 9,337
======= ======= ========= ========= ======== ======== ========= =========
(a) Includes accounts on which all payments necessary to mature have been made, but additional time must
elapse before the certificate maturity year is completed. Also includes accounts for which maturity
election has been made, but no further payments have been received.</TABLE>
<PAGE>
PAGE 118
Part 4 - Amounts Periodically Credited to Certificate Holders' Accounts
to Accumulate the Maturity Amount of Installment Certificates.
Information as to (1) amounts periodically credited to each class of
security holders' accounts from installment payments and (2) such other
amounts periodically credited to accumulate the maturity amount of the
certificate (on a $1,000 face-amount certificate basis for the term of
the certificate), is filed in Part 4 of Schedule IX as part of Post-
effective Amendment No. 9 to Registration Statement No. 2-17681, Post
effective Amendment No. 1 to Registration Statement No. 2-23772 and
Post-effective Amendment No. 1 to Registration Statement No. 2-258081
and is incorporated herein by reference.
<PAGE>
PAGE 119
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE XII
Valuation and Qualifying Accounts
Years ended December 31, 1993, 1992 and 1991
($ thousands)
Year ended December 31, 1993
----------------------------
Additions
----------------
Reserves Balance Charged
deducted from at to costs Deductions Balance
assets to beginning and from at end
which they apply of period expenses Other reserves of period
-------------------- --------- -------- ----- ---------- ---------
<S> <C> <C> <C> <C> <C>
Allowance for losses:
Securities $ 14,210 0 0 12,161(a) 2,049
Conventional
first mortgage
loans 1,711 0 0 750(b) 961
Other assets 1,488 0 530(b) 0 2,018
Year ended December 31, 1992
----------------------------
Additions
----------------
Reserves Balance Charged
deducted from at to costs Deductions Balance
assets to beginning and from at end
which they apply of period expenses Other reserves of period
-------------------- --------- -------- ----- ---------- ---------
Allowance for losses:
Securities $ 10,021 4,189 0 0 14,210
Conventional
first mortgage
loans 1,561 500 0 350(c) 1,711
Other assets 1,138 0 350(c) 0 1,488
Year ended December 31, 1991
----------------------------
Additions
----------------
Reserves Balance Charged
deducted from at to costs Deductions Balance
assets to beginning and from at end
which they apply of period expenses Other reserves of period
- -------------------- --------- -------- ----- ---------- ---------
Allowance for losses:
Securities $ 5,021 5,000 0 0 10,021
Conventional
first mortgage
loans 779 782 0 0 1,561
Other assets 3,849 0 0 2,711(d) 1,138
a) Applicable to reversal on securities sold during 1993.
b) Represents $530 transferred from mortgage loans on real estate to other
assets and $220 reversal.
c) Transferred from mortgage loans on real estate to other assets.
d) Applicable to reversal on other assets sold during 1991.
</TABLE>
