<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, 1995
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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PAGE 2
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 reduced disclosure format.
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. American Express Financial Corporation
(formerly know as IDS Financial Corporation), a Delaware
corporation, IDS Tower 10, Minneapolis, Minnesota 55440-0010,
owns 100% of the outstanding voting securities of IDSC. As of
January 1, 1995, IDS Financial Corporation changed its name to
American Express Financial Corporation. American Express Financial
Corporation 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
owner 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
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 American
Express Financial Advisors Inc. (formerly known as IDS Financial
Services Inc.), an affiliate of IDSC. With respect to the IDS
Investors Certificate and the IDS Stock Market Certificate,
American Express Financial Advisors Inc., in turn, has Selling
Agent Agreements with American Express Bank International (AEBI), a
subsidiary of American Express, and Coutts & Co. (USA)
International (Coutts), a subsidiary of NatWest PLC, for selling
the certificates. American Express Financial Advisors 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. (AEB), a subsidiary of American Express, for
marketing the certificate. IDSC's board of directors has approved
a Distribution Agreement with American Express Service Corporation
(AESC) under which AESC could distribute IDS Stock Market
Certificate and potentially other IDS certificates through a direct
marketing channel of distributions, but there is no assurance that
IDS certificates will be so distributed.
<PAGE>
PAGE 4
AEBI and Coutts are Edge Act corporations organized under the
provisions of Section 25(a) of the Federal Reserve Act. American
Express Financial Advisors Inc. has entered into a consulting
agreement with AEBI under which AEBI provides consulting services
related to any selling agent agreements between American Express
Financial Advisors Inc. and other Edge Act corporations.
IDSC also offers one certificate in connection with certain
employee benefit plans available to eligible American Express
Financial Corporation employees, financial advisors 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.
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 certificate owners can surrender their
certificates without penalty at term end.
The IDS Future Value Certificate is a single payment
certificate on which IDSC 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 on which IDSC 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 on which IDSC guarantees interest in advance for a term of 6,
12, 18, 24, 30 or 36 months, and potentially other terms, 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 owner the opportunity to
have all or part of his/her interest tied to stock market
performance, as measured by a broad stock market index, with return
of principal guaranteed by IDSC. After the first term, the holder
can also choose to earn a fixed rate of interest. In addition to
being sold to clients of American Express Financial Advisors Inc.
pursuant to a Distribution Agreement with American Express
Financial Advisors Inc., this certificate is sold by AEBI and
Coutts under Selling Agent Agreements with American Express
Financial Advisors Inc. to AEBI's clients and certain of Coutts'
clients, respectively, who are neither citizens nor residents of
the United States.
The IDS Investors Certificate is a single payment
certificate that generally permits additional payments within 15
days of term renewal. Interest rates are guaranteed in advance by <PAGE>
PAGE 5
IDSC 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 and
Coutts, through Selling Agent Agreements with American Express
Financial Advisors Inc., only to AEBI's clients and certain of
Coutts' clients, respectively, who are neither citizens nor
residents of the United States.
The IDS Special Deposits is a single payment certificate
that generally permits additional payments within 15 days of term
renewal. Interest rates are guaranteed in advance by IDSC for a
term of 1, 2, 3, 6, 12, 24 or 36 months, at the buyer's option.
This certificate is currently marketed by 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.
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 or other entity.
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 for an initial purchase
of the certificate 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 Future Value
Certificate, IDS Cash Reserve Certificate and the IDS Series D-1
Investment Certificate, the published rates of the BANK RATE
MONITOR Top 25 Market Averagetm 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 Top 25 Market Average (the BRM Average), is 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.<PAGE>
PAGE 6
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
major stock market index and principal guaranteed by IDSC. 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 American Express Financial Corporation for advisory and
other services, the distribution fees paid to American Express
Financial Advisors Inc., and marketing fees paid to AEB.
The following table shows IDSC's certificate payments received and
certificate surrenders for the three years ended December 31, 1995:
1995 1994 1993
Single Payment Certificates ($ in millions)
Non-Qualified
Payments through
American Express
Financial Advisors Inc. $1,090.0 $ 802.4 $ 581.5
AEBI, AEB and Coutts 429.4 436.0 243.0
Surrenders through
American Express
Financial Advisors Inc. 662.0 753.6 882.8
AEBI, AEB and Coutts 292.0 429.2 395.3
Qualified
Payments through
American Express Financial
Advisors Inc. 236.0 264.9 166.8
Surrenders through
American Express Financial
Advisors Inc. 205.5 238.5 276.7
Installment Payment Certificates - through
American Express Financial Advisors Inc.
Non-Qualified
Payments 109.5 107.6 108.2
Surrenders 112.4 116.6 103.6
Qualified
Payments 1.9 2.9 3.9
Surrenders 4.8 7.8 8.0<PAGE>
PAGE 7
In 1995, approximately 25% of single payment certificate
payments were through AEBI, AEB and Coutts and approximately 14% of
single payment certificate payments and 2% of installment
certificate payments were of tax-qualified certificates for use in
IRAs, 401(k) plans and other qualified retirement plans.
The certificates offered by American Express Financial
Advisors 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 American Express Financial
Advisors Inc. or IDSC as that term is defined in the 1940 Act. The
agreement provides for the payment of distribution fees to American
Express Financial Advisors Inc. for services provided thereunder.
American Express Financial Advisors Inc. is a wholly owned
subsidiary of American Express Financial Corporation. For the
distribution of the IDS Investors Certificate, American Express
Financial Advisors Inc., in turn, has Selling Agent Agreements with
AEBI and Coutts. For marketing IDS Special Deposits, IDSC has a
Marketing Agreement with AEB. These agreements are terminable upon
60 days' notice and subject to annual review by the directors who
are not "interested persons" of American Express Financial Advisors
Inc. or IDSC.
IDSC receives advice, statistical data and recommendations
with respect to the acquisition and disposition of securities for
its portfolio from American Express Financial Corporation, 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 American Express Financial
Corporation or IDSC.
IDSC is required to maintain "qualified investments" meeting
the standards of Section 28(b) of the 1940 Act. The amortized cost
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 sales 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.<PAGE>
PAGE 8
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 American Express Financial
Corporation and, indirectly, of American Express. Frequency and
amount of dividends declared during the past two years are as
follows:
Dividend Payable Date Cash
For year ended December 31, 1995: $ None
Dividend Payable Date Cash
For year ended December 31, 1994:
February 10, 1994 $12,400,000
May 10, 1994 12,400,000
August 10, 1994 12,400,000
December 29, 1994 3,000,000
Total $40,200,000
Restriction on the Registrant's present or future ability to
pay dividends:
Certain series of installment certificates outstanding provide
that cash dividends may be paid by IDSC only in calendar years for
which additional credits of at least 1/2 of 1% on such series of
certificates have been authorized by IDSC. This restriction has
been removed for 1996 and 1997 by action of IDSC on additional
credits in excess of this requirement.
Appropriated retained earnings resulting from the
predeclaration of additional credits to IDSC's certificate holders
are not available for the payment of dividends by IDSC. In
addition, IDSC will discontinue issuance of certificates subject to
the predeclaration of additional credits and will make no further
predeclaration as to outstanding certificates if at any time the
capital and unappropriated retained earnings of IDSC should be less
than 5% of net certificate reserves (certificate reserves less
certificate loans). At December 31, 1995, the capital and
unappropriated retained earnings amounted to 5.65% of net
certificate reserves.
<PAGE>
PAGE 9
Item 6. Selected Financial Data
Summary of selected financial information
The following selected financial information has been derived from
the audited financial statements and should be read in conjunction
with those statements and the related notes to financial
statements. Also see Management's Discussion and Analysis of
Financial Condition and Results of Operations for additional
comments.
<TABLE><CAPTION>
Year Ended Dec. 31, 1995 1994 1993 1992 1991
($ thousands)
<S> <C> <C> <C> <C> <C>
Statement of Operations Data:
Investment income $256,913 $207,975 $236,859 $294,799 $351,970
Investment expenses 62,817 58,690 65,404 69,630 63,353
Net investment income before provision for
certificate reserves and income tax benefit 194,096 149,285 171,455 225,169 288,617
Net provision for certificate reserves 176,407 107,288 123,516 178,175 258,443
Net investment income before income taxes 17,689 41,997 47,939 46,994 30,174
Income tax benefit 9,097 2,663 3,365 11,666 20,537
Net investment income 26,786 44,660 51,304 58,660 50,711
Realized gain (loss) on investments - net:
Securities of unaffiliated issuers 452 (7,514) (9,870) (9,498) (129)
Other - unaffiliated (120) 1,638 (418) (500) (1,053)
Total gain (loss) on investments 332 (5,876) (10,288) (9,998) (1,182)
Income tax benefit (expense) (117) 2,047 4,617 - 402
Net realized gain (loss) on investments 215 (3,829) (5,671) (9,998) (780)
Net income - wholly owned subsidiary 373 241 120 3 139
Net income $27,374 $41,072 $45,753 $48,665 $50,070
Dividends declared:
Cash $- $40,200 $64,500 $83,750 $74,800
In-kind(a) - - - 64,558 25,466
Balance Sheet Data:
Total assets $3,912,131 $3,040,857 $2,951,405 $3,444,985 $3,971,583
Certificate loans 51,147 58,203 67,429 77,347 88,570
Certificate reserves 3,628,574 2,887,405 2,777,451 3,256,472 3,712,570
Stockholder's equity 250,307 141,852 161,138 179,885 223,820
IDS Certificate Company (IDSC) is 100% owned by American Express Financial Corporation (Parent).
(a) Consisted of an investment security at amortized cost in 1992 and a reduction in the note receivable from
Parent in 1991.
/TABLE
<PAGE>
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 primarily
from the after-tax yield on invested assets less investment
expenses and interest credited on certificate reserve liabilities.
Changes in earnings' trends occur largely due to changes in the
rates of return on investments and the rates of interest credited
to certificate holder accounts and also, the mix of fully taxable
and tax-advantaged investments in the IDSC portfolio.
During the years 1992 and 1993, total assets and certificate
reserve liabilities decreased due to certificate maturities and
surrenders exceeding certificate sales. The excess of certificate
maturities and surrenders over certificate sales in 1992 and 1993
primarily reflected lower accrual rates declared by IDSC in those
years, which in turn, reflected lower interest rates available in
the marketplace.
During the years 1994 and 1995, total assets and certificate
reserves increased due to certificate sales exceeding certificate
maturities and surrenders. The excess of certificate sales over
certificate maturities and surrenders resulted primarily from
higher accrual rates declared by IDSC during the last six months of
1994 and the first six months of 1995, reflecting rising interest
rates in the marketplace. The increase in total assets in 1995
reflects also an increase of $81 million in net unrealized
appreciation on investment securities classified as available for
sale. The increase in total assets in 1994 was tempered by $23
million of net unrealized depreciation on investment securities
classified as available for sale, net of deferred taxes of $13
million.
1995 Compared to 1994:
Gross investment income increased 24% due primarily to a higher
average balance of invested assets and slightly higher investment
yields.
The 7.1% increase in investment expenses resulted primarily from
higher distribution fees due to higher sales of certificates that
provide for no deferral of those fees, and higher investment
advisory and services fee due to a higher asset base on which the
fee is calculated. These increases were partially offset by lower
amortization of the cost of options and interest rate caps. The
lower amortization of interest rate caps reflects the net of $1.7
million of accelerated amortization and $5.6 million higher
interest earned under the cap agreements.
Net provision for certificate reserves increased 65% reflecting a
higher average balance of certificate reserves and higher accrual
rates.
<PAGE>
PAGE 11
The increase in income tax benefit resulted primarily from a
greater portion of net investment income before income tax benefit
being attributable to tax-advantaged income.
1994 Compared to 1993:
Gross investment income decreased 12% due primarily to a lower
average balance of invested assets and slightly lower investment
yields.
The 10% decrease in investment expenses resulted primarily from
lower amortization of the cost of interest rate caps and $2.3
million of interest earned under the cap agreements in 1994. Lower
amortization of deferred distribution fees, and lower investment
advisory and services fees due to a lower average asset base on
which the fee is calculated contributed also to the decrease in
investment expenses.
Net provision for certificate reserves decreased 13% reflecting
lower accrual rates during the first six months of the year and a
lower average balance of certificate reserves.
The decrease in income tax benefit resulted primarily from lower
tax-advantaged income.
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 its Parent.
Certificate sales volume increased 38% in 1995, reflecting higher
accrual rates and clients' ongoing desire for safety of principal.
Sales of certificates totaled $1.5 billion compared to $1.1
billion in 1994 and $.6 billion during 1993. Certificate sales in
1995 benefitted also from a special introductory promotion of
IDSC's 11-month term Flexible Savings certificate.
The special promotion of the 11-month term Flexible Savings
certificate was offered from May 10, 1995 to July 3, 1995, and
applied only to sales of new certificate accounts during the
promotion period. Certificates sold during the promotion period
received a special interest rate of 7.0% for the 11-month term and
totaled $562 million.
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 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
intermediate-term bonds.
<PAGE>
PAGE 12
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 to meet anticipated certificate holder
obligations.
Effective Jan. 1, 1994, IDSC adopted Statement of Financial
Accounting Standards (SFAS) No. 115, "Accounting for Certain
Investments in Debt and Equity Securities". Under the SFAS No.
115, debt securities that IDSC has both the positive intent and
ability to hold to maturity are carried at amortized cost. Debt
securities IDSC does not have the positive intent to hold to
maturity, as well as all marketable equity securities, are
classified as available for sale and carried at fair value. The
available-for-sale classification does not mean that IDSC expects
to sell these securities, but that under SFAS No. 115 positive
intent criteria, these securities are available to meet possible
liquidity needs should there be significant changes in market
interest rates or certificate holder demand. See notes 1 and 3 to
the financial statements for additional information relating to
SFAS No. 115.
At Dec. 31, 1995, securities classified as held to maturity and
carried at amortized cost were $1.0 billion. Securities
classified as available for sale and carried at fair value were
$2.4 billion. These securities, which comprise 90% of IDSC's total
invested assets, are well diversified. Of these securities, 97%
are of investment grade and, other than U.S. Government Agency
mortgage-backed securities, no one issuer represents more than 1%
of these securities. See note 3 to financial statements for
additional information on ratings and diversification.
During the year ended Dec. 31, 1995, investment securities,
primarily municipal bonds, with an amortized cost and fair value of
$112 million and $117 million, respectively, were reclassified from
held to maturity to available for sale. The reclassification was
made on Dec. 4, 1995, as a result of IDSC adopting the FASB Special
Report, "A Guide to Implementation of Statement 115 on Accounting
for Certain Investments in Debt and Equity Securities". There were
no other transfers of securities during the years 1995 and 1994.
Derivative financial instruments:
IDSC enters into transactions involving interest rate caps, and
purchased and written call options to manage its exposure to rising
interest rates. IDSC does not enter into such transactions for
trading purposes. There is a possibility that the value of these
instruments will change due to fluctuations in a factor from which
the instruments derive their values. IDSC is not subject to this
market risk because these instruments are largely used to hedge
such risks, and therefore, the cash flow and income effects of the
instruments are inverse to the effects of the underlying
transactions. See note 9 to financial statements for additional
information regarding derivative financial instruments.
<PAGE>
PAGE 13
Capital contributions:
To maintain its regulatory capital requirements, IDSC received a
capital contribution from its Parent of $28.5 million in 1995.
Ratios:
The ratio of stockholder's equity, excluding net unrealized holding
gains and losses on investment securities, to total assets less
certificate loans and net unrealized holding gains and losses on
investment securities at Dec. 31, 1995 was 5.79% compared to 5.49%
in 1994. IDSC intends to manage this ratio to 5.0% in 1996, 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 16
Responsibility for Preparation of Financial Statements 17
Balance Sheets, Dec. 31, 1995 and 1994 18-19
Statements of Operations, year ended Dec. 31, 1995,
1994 and 1993 20-21
Statements of Stockholder's Equity, year ended
Dec. 31, 1995, 1994 and 1993 22
Statements of Cash Flows, year ended Dec. 31,
1995, 1994 and 1993 23-24
Notes to Financial Statements 25-38
Schedules:
I - Investments in Securities of Unaffiliated Issuers,
Dec. 31, 1995
II - Investments in and Advances to Affiliates and Income
Thereon, Dec. 31, 1995, 1994 and 1993
III - Mortgage Loans on Real Estate and Interest earned on
Mortgages, year ended Dec. 31, 1995
V - Qualified Assets on Deposit, Dec. 31, 1995
VI - Certificate Reserves, year ended Dec. 31, 1995
VII - Valuation and Qualifying Accounts, year ended
Dec. 31, 1995, 1994 and 1993
Schedules III and Schedule VI for the year ended Dec. 31, 1994
and Schedule VI (formerly Schedule XI) for the year ended Dec. 31,
1993 are included in Registrant's Annual Reports on Form 10-K for
the fiscal years ended Dec. 31, 1994 and Dec. 31, 1993,
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. The Distribution Agreement dated March 29, 1996
between Registrant and American Express Service
Corporation, filed electronically as Exhibit 1(b) to
Post-Effective Amendment No. 38 to Registration Statement
No. 2-55252 for the D-1 Investment 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.
(1)e. Letter Amendment to Marketing Agreement dated
October 10, 1991, between Registrant and American Express
Bank Ltd. is filed electronically herewith.
(1)f. Amendment to the Selling Agent Agreement dated
December 12, 1994 between IDS Financial Services Inc. and
American Express Bank International filed electronically
as Exhibit 16(d) to Post-Effective Amendment No. 13 to
Registration Statement No. 2-95577, is incorporated
herein by reference.<PAGE>
PAGE 17
(1)g. Selling Agent Agreement dated December 12, 1994
between IDS Financial Services Inc. and Coutts & Co.
(USA) International filed electronically as Exhibit 16(e)
to Post-Effective Amendment No. 13 to Registration
Statement No. 2-95577, is incorporated herein by
reference.
(1)h. Consulting Agreement dated December 12, 1994
between IDS Financial Services Inc. and American Express
Bank International filed electronically as Exhibit 16(f)
Post-Effective No. 13 to Registration Statement No. 2-
95577, is incorporated herein by reference.
(1)i. Second amendment to Selling Agent Agreement
between American Express Financial Advisors Inc. and
American Express Bank International dated as of May 2,
1995, filed electronically as Exhibit (1) to Registrant's
June 30, 1995 quarterly report on Form 10-Q, is
incorporated herein by reference.
(3)a. Certificate of Incorporation, dated December 31,
1977, filed electronically as Exhibit 3(a) to
Post-Effective Amendment No. 10 to Registration Statement
No. 2-89507 is incorporated herein by reference.
(3)b. Certificate of Amendment, dated April 2, 1984,
filed electronically as Exhibit 3(b) to Post-Effective
Amendment No. 10 to Registration Statement No. 2-89507,
is incorporated herein by reference.
(3)c. By-Laws, dated December 31, 1977, filed
electronically as Exhibit 3(c) to Post-Effective
Amendment No. 10 to Registration Statement No. 2-89507,
is incorporated herein by reference.
(10)a. The Investment Advisory and Services Agreement
between Registrant and IDS/American Express Inc. dated
January 12, 1984 filed electronically as Exhibit 10(a) to
Registration Statement No. 2-89507 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. 3 to
Registration Statement No. 2-89507 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. 10 to Registration Statement No.
2-89507 is incorporated herein by reference.
<PAGE>
PAGE 18
(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. 10 to Registration Statement No. 2-89507
is incorporated herein by reference.
(10)e. Agreement by and between registrant and Investors
Diversified Services, Inc. (now IDS Financial Services
Inc.) 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.
(10)f. 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)g. 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.
(24)a. Officers' Power of Attorney dated May 17, 1994,
1994, filed as Exhibit 25(a) to Post-Effective Amendment
No. 37 to Registration Statement No. 2-55252, is
incorporated herein by reference.
(24)b. Directors' Power of Attorney dated May 13, 1994,
1994, filed as Exhibit 25(b) to Post-Effective Amendment
No. 37 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, 1996
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 and Director
(Principal Executive Officer)
DATE March 29, 1996
BY BRUCE A. KOHN
NAME AND TITLE Jay C. Hatlestad,* Vice
President and Controller
(Principal Accounting Officer)
DATE March 29, 1996
BY BRUCE A. KOHN
NAME AND TITLE Morris Goodwin,* Vice President
and Treasurer (Principal
Financial Officer)
DATE March 29, 1996
BY BRUCE A. KOHN
NAME AND TITLE David R. Hubers,** Director
DATE March 29, 1996
BY BRUCE A. KOHN
NAME AND TITLE Charles W. Johnson,** Director
DATE March 29, 1996
BY BRUCE A. KOHN
NAME AND TITLE Edward Landes,** Director
DATE March 29, 1996
BY BRUCE A. KOHN
NAME AND TITLE John V. Luck,** Director
DATE March 29, 1996
<PAGE>
PAGE 20
BY BRUCE A. KOHN
NAME AND TITLE James A. Mitchell,** Director
DATE March 29, 1996
BY BRUCE A. KOHN
NAME AND TITLE Harrison Randolph,** Director
DATE March 29, 1996
BY BRUCE A. KOHN
NAME AND TITLE Gordon H. Ritz,** Director
DATE March 29, 1996
* Signed pursuant to Officers' Power of Attorney dated May 17,
1994 filed as Exhibit 25(a) to Post-Effective Amendment
No. 37 to Registration Statement No. 2-55252, incorporated herein
by reference.
_______________________
Bruce A. Kohn
** Signed pursuant to Directors' Power of Attorney dated May 13,
1994 filed as Exhibit 25(b) to Post-Effective Amendment No. 37 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, a wholly owned subsidiary of American Express
Financial Corporation, as of December 31, 1995 and 1994, and the
related statements of operations, stockholder's equity, and cash
flows for each of the three years in the period ended December 31,
1995. 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, 1995 and 1994 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, 1995 and 1994, and the results
of its operations and its cash flows for each of the three years in
the period ended December 31, 1995, 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.
As discussed in note 1 to the financial statements, IDS Certificate
Company changed its method of accounting for certain investments in
debt and equity securities in 1994.
ERNST & YOUNG LLP
Minneapolis, Minnesota
February 8, 1996
<PAGE>
PAGE 22
IDS Certificate Company
Responsibility for Preparation of Financial Statements
The management of IDS Certificate Company (IDSC) is responsible for
the preparation and fair presentation of its financial statements.
The financial 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. IDSC's management is also responsible for the accuracy
and consistency of other financial information included in this
Form 10-K.
In recognition of its responsibility for the integrity and
objectivity of data in the financial statements, IDSC maintains a
system of internal control over financial reporting. The system is
designed to provide reasonable, but not absolute, assurance with
respect to the reliability of IDSC's financial statements. The
concept of reasonable assurance is based on the notion that the
cost of the internal control system should not exceed the benefits
derived.
The internal control system is founded on an ethical climate and
includes an organizational structure with clearly defined lines of
responsibility, policies and procedures, and the careful selection
and training of employees. Internal auditors monitor and assess
the effectiveness of the internal control system and report their
findings to management throughout the year. IDSC's independent
auditors are engaged to express an opinion on the year-end
financial statements and, with the coordinated support of the
internal auditors, review the financial records and related data
and test the internal control system over financial reporting.
<PAGE>
PAGE 23
Balance Sheets, Dec. 31,
<TABLE><CAPTION>
Assets
Qualified Assets (note 2) 1995 1994
($ thousands)
<S> <C> <C>
Investments in unaffiliated issuers (notes 3, 4 and 10):
Cash and cash equivalents $56,873 $140,128
Held-to-maturity securities 1,002,905 1,245,793
Available-for-sale securities 2,408,491 1,226,674
First mortgage loans on real estate 233,394 253,968
Certificate loans - secured by certificate reserves 51,147 58,203
Investments in and advances to affiliates 5,655 5,399
Total investments 3,758,465 2,930,165
Receivables:
Dividends and interest 49,632 42,261
Investment securities sold 42,872 7,269
Total receivables 92,504 49,530
Other (notes 9 and 10) 32,778 25,094
Total qualified assets 3,883,747 3,004,789
Other Assets
Deferred distribution fees 28,286 27,142
Deferred federal income taxes (note 8) - 8,372
Other 98 554
Total other assets 28,384 36,068
Total assets $3,912,131 $3,040,857
See notes to financial statements. <PAGE>
PAGE 24
Balance Sheets, Dec. 31,
Liabilities and Stockholder's Equity
Liabilities 1995 1994
($ thousands)
Certificate Reserves (notes 5 and 10):
Installment certificates:
Reserves to mature $330,415 $335,712
Additional credits and accrued interest 21,555 19,698
Advance payments and accrued interest 1,394 1,634
Other 55 56
Fully paid certificates:
Reserves to mature 3,127,301 2,389,198
Additional credits and accrued interest 147,468 140,766
Due to unlocated certificate holders 386 341
Total certificate reserves 3,628,574 2,887,405
Accounts Payable and Accrued Liabilities:
Due to Parent (note 7A) 1,541 1,186
Due to Parent for federal income taxes 103 -
Due to affiliates (note 7B and 7C) 2,068 2,883
Payable for investment securities purchased - 1,362
Accounts payable, accrued expenses and other (notes 9 and 10) 12,249 6,169
Total accounts payable and accrued liabilities 15,961 11,600
Deferred federal income taxes (note 8) 17,289 -
Total liabilities 3,661,824 2,899,005
Stockholder's Equity (notes 5B, 5C, and 6):
Common stock, $10 par - authorized and issued 150,000 shares 1,500 1,500
Additional paid-in capital 168,844 140,344
Retained earnings:
Appropriated for predeclared additional credits/interest 18,878 18,398
Appropriated for additional interest on advance payments 50 50
Unappropriated 31,612 4,718
Unrealized holding gains (losses) on investment
securities - net (note 3A) 29,423 (23,158)
Total stockholder's equity 250,307 141,852
Total liabilities and stockholder's equity $3,912,131 $3,040,857
See notes to financial statements.
/TABLE
<PAGE>
PAGE 25
<TABLE><CAPTION>
Statements of Operations
Year ended Dec. 31, 1995 1994 1993
($ thousands)
<S> <C> <C> <C>
Investment Income:
Interest income from investments:
Bonds and notes:
Unaffiliated issuers $181,902 $125,546 $140,991
Mortgage loans on real estate:
Unaffiliated 22,171 24,006 24,071
Affiliated 56 68 78
Certificate loans 2,963 3,342 3,882
Dividends 48,614 54,170 67,115
Other 1,207 843 722
Total investment income 256,913 207,975 236,859
Investment Expenses:
Parent and affiliated company fees (note 7):
Distribution 33,977 27,007 28,477
Investment advisory and services 16,472 13,565 15,036
Depositary 242 183 201
Options (note 9) 8,038 9,854 9,419
Interest rate caps (note 9) 3,725 7,608 11,667
Other 363 473 604
Total investment expenses 62,817 58,690 65,404
Net investment income before provision
for certificate reserves and income tax benefit $194,096 $149,285 $171,455
See notes to financial statements.
<PAGE>
PAGE 26
Statements of Operations (continued)
Year ended Dec. 31, 1995 1994 1993
($ thousands)
Provision for Certificate Reserves (notes 5 and 9):
According to the terms of the certificates:
Provision for certificate reserves $11,009 $13,317 $20,555
Interest on additional credits 2,300 3,174 3,605
Interest on advance payments 73 61 90
Additional credits/interest authorized by IDSC:
On fully paid certificates 157,857 85,101 93,546
On installment certificates 6,288 6,741 6,704
Total provision before reserve recoveries 177,527 108,394 124,500
Reserve recoveries from terminations
prior to maturity (1,120) (1,106) (984)
Net provision for certificate reserves 176,407 107,288 123,516
Net investment income before income tax benefit 17,689 41,997 47,939
Income tax benefit (note 8) 9,097 2,663 3,365
Net investment income 26,786 44,660 51,304
Realized gain (loss) on investments - net:
Securities of unaffiliated issuers 452 (7,514) (9,870)
Other-unaffiliated (120) 1,638 (418)
Total gain (loss) on investments 332 (5,876) (10,288)
Income tax benefit (expense) (note 8):
Current 160 2,414 19,508
Deferred (277) (367) (14,891)
Total income tax benefit (expense) (117) 2,047 4,617
Net realized gain (loss) on investments 215 (3,829) (5,671)
Net income - wholly owned subsidiary 373 241 120
Net income $27,374 $41,072 $45,753
See notes to financial statements.
<PAGE>
PAGE 27
Statements of Stockholder's Equity
Year ended Dec. 31, 1995 1994 1993
($ thousands)
Common Stock:
Balance at beginning and end of year $1,500 $1,500 $1,500
Additional Paid-in Capital:
Balance at beginning of year $140,344 $147,144 $166,144
Contribution from Parent 28,500 3,000 -
Cash dividends declared - (9,800) (19,000)
Balance at end of year $168,844 $140,344 $147,144
Retained Earnings:
Appropriated for predeclared additional credits/interest (note 5B):
Balance at beginning of year $18,398 $2,726 $2,804
Transferred from (to) unappropriated retained earnings 480 15,672 (78)
Balance at end of year $18,878 $18,398 $2,726
Appropriated for additional interest on advance payments (note 5C):
Balance at beginning of year $50 $25 $100
Transferred from (to) unappropriated retained earnings - 25 (75)
Balance at end of year $50 $50 $25
Unappropriated (note 6):
Balance at beginning of year $4,718 $9,743 $9,337
Net income 27,374 41,072 45,753
Transferred (to) from appropriated retained earnings (480) (15,697) 153
Cash dividends declared - (30,400) (45,500)
Balance at end of year $31,612 $4,718 $9,743
Unrealized holding gains and losses on investment securities -
net (notes 1 and 3A):
Balance at beginning of year ($23,158) $- $-
Adjustment due to initial application of SFAS 115 - 8,827 -
Change during year 52,581 (31,985) -
Balance at end of year $29,423 ($23,158) $-
Total stockholder's equity $250,307 $141,852 $161,138
See notes to financial statements.
<PAGE>
PAGE 28
Statements of Cash Flows
Year ended Dec. 31, 1995 1994 1993
($ thousands)
Cash flows from operating activities:
Net income $27,374 $41,072 $45,753
Adjustments to reconcile net income to net
cash provided by operating activities:
Net income of wholly owned subsidiary (373) (241) (120)
Certificate reserves 176,407 107,288 123,516
Interest income added to certificate loans (1,902) (2,133) (2,454)
Amortization of premium/discount-net 19,232 22,114 27,494
Deferred federal income taxes (2,652) 4,263 11,446
Deferred distribution fees (1,144) (7,527) 1,935
Net (gain) loss on investments (332) 5,876 10,288
(Increase) decrease in dividends and interest receivable (7,371) (1,829) 10,009
(Increase) decrease in other assets 466 (466) 967
Increase (decrease) in other liabilities (1,549) (3,210) 4,979
Net cash provided by operating activities 208,156 165,207 233,813
Cash flows from investing activities:
Maturity and redemption of investments:
Held-to-maturity securities 315,766 350,411 641,778
Available-for-sale securities 325,521 173,547 -
Other investments 46,004 35,130 21,373
Sale of investments:
Held-to-maturity securities 22,305 3,164 329,942
Available-for-sale securities 48,372 267,808 -
Other investments 21 - 5,454
Certificate loan payments 6,061 7,508 8,991
Purchase of investments:
Held-to-maturity securities (208,140) (46,080) (498,841)
Available-for-sale securities (1,397,983) (830,826) -
Other investments (17,234) (9,208) (78,816)
Certificate loan fundings (7,776) (7,603) (10,275)
Investment in subsidiary - (450) (2,000)
Net cash (used in) provided by investing activities ($867,083) ($56,599) $417,606
See notes to financial statements.
<PAGE>
PAGE 29
Statements of Cash Flows (continued)
Year ended Dec. 31, 1995 1994 1993
($ thousands)
Cash flows from financing activities:
Reserve payments by certificate holders $1,577,884 $1,185,762 $709,684
Proceeds from securities loaned to brokers - - 6,150
Proceeds from reverse repurchase agreements - - 72,800
Capital contribution from Parent 28,500 3,000 -
Certificate maturities and cash surrenders (1,030,712) (1,171,101) (1,312,260)
Payments to brokers upon return of securities loaned - - (7,793)
Payments under reverse repurchase agreements - - (72,800)
Dividends paid - (40,200) (64,500)
Net cash provided by (used in) financing activities 575,672 (22,539) (668,719)
Net increase (decrease) in cash and cash equivalents (83,255) 86,069 (17,300)
Cash and cash equivalents beginning of year 140,128 54,059 71,359
Cash and cash equivalents end of year $56,873 $140,128 $54,059
Supplemental disclosures including non-cash transactions:
Cash received for income taxes $6,854 $2,416 $26,606
Certificate maturities and surrenders through loan
reductions 10,673 11,454 13,656
</TABLE>
See notes to financial statements.
<PAGE>
PAGE 30
Notes to Financial Statements ($ in thousands unless indicated
otherwise)
1. Nature of business and summary of significant accounting
policies
Nature of business
IDS Certificate Company (IDSC) is a wholly owned subsidiary of
American Express Financial Corporation (Parent), which is a wholly
owned subsidiary of American Express Company. IDSC is registered
as an investment company under the Investment Company Act of 1940
("the 1940 Act") and is in the business of issuing face-amount
investment certificates. The certificates issued by IDSC are not
insured by any government agency. IDSC's certificates are sold
primarily by American Express Financial Advisors Inc.'s (an
affiliate) field force operating in 50 states, the District of
Columbia and Puerto Rico. IDSC's Parent acts as investment advisor
for IDSC.
IDSC currently offers eight types of certificates with specified
maturities ranging from four to twenty years. Within their
specified maturity, most certificates have interest rate terms of
one to thirty-six months. In addition, one type of certificate has
interest tied, in whole or in part, to any upward movement in a
broad-based stock market index. Except for two types of
certificates, all of the certificates are available as qualified
investments for Individual Retirement Accounts or 401(k) plans and
other qualified retirement plans.
IDSC's gross income is derived primarily 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 Parent for investment advisory and other services, and the
distribution fees paid to American Express Financial Advisors Inc.
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 in accordance
with generally accepted accounting principles. IDSC uses the
equity method of accounting for 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.
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities and the reported amounts of income and expenses during
the year then ended. Actual results could differ from those
estimates.
<PAGE>
PAGE 31
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.
Debt securities that IDSC has both the positive intent and ability
to hold to maturity are carried at amortized cost. Debt securities
IDSC does not have the positive intent to hold to maturity, as well
as all marketable equity securities, are classified as available
for sale and carried at fair value. Unrealized holding gains and
losses on securities classified as available for sale are carried,
net of deferred income taxes, as a separate component of
stockholder's equity.
The basis for determining cost in computing realized gains and
losses on securities is specific identification. When there is a
decline in value that is other than temporary, the securities are
carried at estimated realizable value with the amount of adjustment
included in income.
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.
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 <PAGE>
PAGE 32
to certificate reserves. The payment distribution, reserve
accumulation rates, cash surrender values, reserve values and other
matters are governed by 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,
under an agreement between Parent 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 Parent and its
subsidiaries that Parent 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 $3,619,188 and
$2,895,226 at Dec. 31, 1995 and 1994, respectively. IDSC had
qualified assets of $3,838,482 at Dec. 31, 1995 and $3,040,416 at
Dec. 31, 1994, excluding net unrealized appreciation on
available-for-sale securities of $45,265 at Dec. 31, 1995 and net
unrealized depreciation of $35,627 at Dec. 31, 1994.
Qualified assets are valued in accordance with such provisions of
Minnesota Statutes as are applicable to investments of life
insurance companies. Qualified assets for which no provision for
valuation is made in such statutes 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
debt securities classified as available for sale and all marketable
equity securities, which are carried at fair value in the financial
statements but are valued at amortized 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:
<PAGE>
PAGE 33
<TABLE><CAPTION>
Dec. 31, 1995
Required
Deposits deposits Excess
<S> <C> <C> <C>
Deposits to meet certificate
liability requirements:
States $414 $384 $30
Central Depositary 3,678,295 3,548,334 129,961
Total $3,678,709 $3,548,718 $129,991
Dec. 31, 1994
Required
Deposits deposits Excess
Deposits to meet certificate
liability requirements:
States $417 $388 $29
Central Depositary 2,939,538 2,817,716 121,822
Total $2,939,955 $2,818,104 $121,851
</TABLE>
The assets on deposit at Dec. 31, 1995 and 1994 consisted of
securities having a deposit value of $3,435,074 and $2,659,676,
respectively; mortgage loans of $229,554 and $252,263,
respectively; and other assets of $14,081 and $28,016,
respectively. Mortgage loans on deposit include an affiliated
mortgage loan.
American Express Trust Company is the central depositary for IDSC.
See note 7C.
3. Investments in securities
A) Fair values of investments in securities 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 following is a summary of securities held to maturity and
securities available for sale at Dec. 31, 1995 and Dec. 31, 1994.
<PAGE>
PAGE 34
<TABLE><CAPTION>
Dec. 31, 1995
Gross Gross
Amortized Fair unrealized unrealized
cost value gains losses
<S> <C> <C> <C> <C>
HELD TO MATURITY
U.S. Government and agencies obligations $415 $427 $12 $-
Mortgage-backed securities 54,477 55,708 1,234 3
Corporate debt securities 333,861 348,860 15,029 30
Stated maturity preferred stock 614,152 643,436 30,072 788
$1,002,905 $1,048,431 $46,347 $821
AVAILABLE FOR SALE
Mortgage-backed securities $1,321,051 $1,340,956 $21,349 $1,444
State and municipal obligations 101,399 105,680 4,281 -
Corporate debt securities 918,792 939,878 22,638 1,552
Stated maturity preferred stock 21,229 21,365 192 56
Common stock 755 612 - 143
$2,363,226 $2,408,491 $48,460 $3,195
Dec. 31, 1994
Gross Gross
Amortized Fair unrealized unrealized
cost value gains losses
HELD TO MATURITY
U.S. Government and agencies obligations $417 $417 $1 $1
Mortgage-backed securities 65,101 66,329 1,251 23
State and municipal obligations 145,205 150,856 5,659 8
Corporate debt securities 405,716 408,087 5,683 3,312
Foreign government bonds and obligations 10,048 10,065 17 -
Stated maturity preferred stock 619,306 616,655 10,201 12,852
$1,245,793 $1,252,409 $22,812 $16,196
AVAILABLE FOR SALE
Mortgage-backed securities $745,513 $724,276 $1,079 $22,316
Corporate debt securities 487,799 473,865 460 14,394
Stated maturity preferred stock 28,234 27,894 50 390
Common stock 755 639 - 116
$1,262,301 $1,226,674 $1,589 $37,216
</TABLE>
The amortized cost and fair value of securities held to maturity
and available for sale, by contractual maturity, at Dec. 31, 1995,
are shown below. Cash flows will differ from contractual
maturities because issuers may have the right to call or prepay
obligations.
<TABLE><CAPTION>
Amortized Fair
cost value
<S> <C> <C>
HELD TO MATURITY
Due within 1 year $94,577 $95,440
Due after 1 through 5 years 388,529 407,994
Due after 5 years through 10 years 269,579 283,685
Due after 10 years 195,743 205,604
948,428 992,723
Mortgage-backed securities 54,477 55,708
$1,002,905 $1,048,431
AVAILABLE FOR SALE
Due within 1 year $146,731 $148,072
Due after 1 through 5 years 746,470 765,480
Due after 5 years through 10 years 38,433 41,945
Due after 10 years 109,786 111,426
1,041,420 1,066,923
Mortgage-backed securities 1,321,051 1,340,956
Common stock 755 612
$2,363,226 $2,408,491
/TABLE
<PAGE>
PAGE 35
During the years ended Dec. 31, 1995 and 1994, there were no
securities classified as trading securities.
The proceeds from sales of available-for-sale securities and the
gross realized gains and gross realized losses on those sales
during the years ended Dec. 31, 1995 and 1994, were as follows:
<TABLE><CAPTION>
1995 1994
<S> <C> <C>
Proceeds $83,970 $265,008
Gross realized gains 36 363
Gross realized losses 1,854 10,140
</TABLE>
Sales of held-to-maturity securities, due to significant credit
deterioration, during the years ended Dec. 31, 1995 and 1994, were
as follows:
<TABLE><CAPTION>
1995 1994
<S> <C> <C>
Amortized cost $22,782 $3,158
Gross realized gains 2 5
Gross realized losses 479 -
</TABLE>
During the year ended Dec. 31, 1995, securities with an amortized
cost and fair value of $111,967 and $116,882, respectively, were
reclassified from held to maturity to available for sale. The
reclassification was made on Dec. 4, 1995, as a result of IDSC
adopting the FASB Special Report, "A Guide to Implementation of
Statement 115 on Accounting for Certain Investments in Debt and
Equity Securities."
B) Investments in securities with fixed maturities comprised 90%
and 84% of IDSC's total invested assets at Dec. 31, 1995 and 1994,
respectively. Securities are rated by Moody's and Standard & Poors
(S&P), or by Parent's 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:
<TABLE><CAPTION>
Rating 1995 1994
<S> <C> <C>
Aaa/AAA 44% 36%
Aa/AA 2 5
Aa/A 2 3
A/A 23 25
A/BBB 6 3
Baa/BBB 20 24
Below investment grade 3 4
100% 100%
</TABLE>
Of the securities rated Aaa/AAA, 92% at Dec. 31, 1995 and 88% at
Dec. 31, 1994 are U.S. Government Agency mortgage-backed securities
that are not rated by a public rating agency. Approximately 11% at
Dec. 31, 1995 and 17% at Dec. 31, 1994 of other securities with
fixed maturities are rated by Parent's internal analysts. At Dec. <PAGE>
PAGE 36
31, 1995 and 1994 no one issuer, other than U.S. Government Agency
mortgage-backed securities, is greater than 1% of IDSC's total
investment in securities with fixed maturities.
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.
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.
4. Investments in first mortgage loans on real estate
As of Jan. 1, 1995, IDSC adopted Statement of Financial Accounting
Standards No. 114, "Accounting by Creditors for Impairment of a
Loan" (SFAS No. 114), as amended by Statement of Financial
Accounting Standards No. 118, "Accounting by Creditors for
Impairment of a Loan - Income Recognition and Disclosures" (SFAS
No. 118). The adoption of the new rules did not have a material
impact on IDSC's results of operations or financial condition.
SFAS No. 114 applies to all loans except for smaller-balance
homogeneous loans that are collectively evaluated for impairment.
Impairment is measured as the excess of the loan's recorded
investment over its present value of expected principal and
interest payments discounted at the loan's effective interest rate,
or the fair value of collateral. The amount of the impairment is
recorded in a reserve for loss on mortgage loans.
Based on management's judgment as to the ultimate collectibility of
principal, interest payments received are either recognized as
income or applied to the recorded investment in the loan until it
has been recovered.
The reserve for loss on mortgage loans is maintained at a level
that management believes is appropriate to absorb estimated credit
losses in the mortgage loan portfolio. The level of the reserve
account is determined based on several factors, including
historical experience, expected future principal and interest
payments, estimated collateral values, and current and anticipated
economic and political conditions. Management regularly evaluates
the adequacy of the reserve for loss on mortgage loans.
At Dec. 31, 1995, IDSC's recorded investment in impaired mortgage
loans was $1,004 and the reserve for loss on that amount was $611.
<PAGE>
PAGE 37
During 1995, the average recorded investment in impaired mortgage
loans was $1,052.
IDSC recognized $53 of interest income related to impaired mortgage
loans for the year ended Dec. 31, 1995.
There were no changes in the reserve for loss on mortgage loans of
$611 during the year ended Dec. 31, 1995.
At Dec. 31, 1995 and 1994, approximately 6% and 9%, 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:
<TABLE><CAPTION>
Region 1995 1994
<S> <C> <C>
East North Central 22% 25%
South Atlantic 22 24
West North Central 19 18
Middle Atlantic 17 16
Mountain 9 6
West South Central 5 5
Pacific 3 3
New England 3 3
100% 100%
Property Type 1995 1994
Apartments 39% 41%
Retail/shopping centers 32 30
Industrial buildings 12 12
Office buildings 8 8
Retirement homes 1 1
Other 8 8
100% 100%
</TABLE>
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, 1995 Dec. 31, 1994
Carrying Fair Carrying Fair
amount value amount value
<S> <C> <C> <C> <C>
Commercial $234,005 $248,860 $254,531 $246,874
Residential - - 48 43
234,005 248,860 254,579 246,917
Reserve for losses (611) - (611) -
Net first mortgage loans on real estate $233,394 $248,860 $253,968 $246,917
</TABLE>
At Dec. 31, 1995 and 1994, there were no commitments for fundings
of first mortgage loans. If there were any commitments, 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% or less
of the market value of the real estate at the time of the loan
funding.
<PAGE>
PAGE 38
5. 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, 1995 and 1994 were:
<TABLE><CAPTION>
1995
Average Average
Reserve gross additional
balance accumulation credit
at Dec. 31 rate rate
<S> <C> <C> <C>
Installment certificates:
Reserves to mature:
With guaranteed rates $40,232 3.50% 1.35%
Without guaranteed rates (A) 290,183 - 3.23
Additional credits and accrued interest 21,555 3.13 -
Advance payments and accrued interest (C) 1,394 3.13 1.72
Other 55 - -
Fully paid certificates:
Reserves to mature:
With guaranteed rates 210,365 3.24 1.85
Without guaranteed rates (A) and (D) 2,916,936 - 5.70
Additional credits and accrued interest 147,468 3.26 -
Due to unlocated certificate holders 386 - -
$3,628,574
1994
Average Average
Reserve gross additional
balance accumulation credit
at Dec. 31 rate rate
Installment certificates:
Reserves to mature:
With guaranteed rates $49,278 3.49% 1.51%
Without guaranteed rates (A) 286,434 - 2.97
Additional credits and accrued interest 19,698 3.11 -
Advance payments and accrued interest 1,634 3.08 1.92
Other 56 - -
Fully paid certificates:
Reserves to mature:
With guaranteed rates 234,822 3.25 1.09
Without guaranteed rates (A) and (D) 2,154,376 - 4.81
Additional credits and accrued interest 140,766 3.35 -
Due to unlocated certificate holders 341 - -
$2,887,405
</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, 1995, $18,878 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 3.13%. IDSC has
increased the rate of accrual to 4.85% through April 30, 1997. An
appropriation of retained earnings amounting to $50 has been made,
which represents the estimated additional accrual that will result
from the increase granted by IDSC.<PAGE>
PAGE 39
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, 1995 and 1994 was $211,093 and
$263,494, respectively.
E) The carrying amounts and fair values of certificate reserves
consisted of the following at Dec. 31, 1995 and 1994. 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 are determined by a
discounted cash flow analysis using interest rates currently
offered for certificates with similar remaining terms, less any
applicable surrender charges.
<TABLE><CAPTION>
1995 1994
Carrying Fair Carrying Fair
amount value amount value
<S> <C> <C> <C> <C>
Reserves with terms of one year or less $2,900,947 $2,899,542 $2,425,880 $2,415,970
Other 727,627 765,110 461,525 461,060
Total certificate reserves 3,628,574 3,664,652 2,887,405 2,877,030
Unapplied certificate transactions 1,545 1,545 2,671 2,671
Certificate loans and accrued interest (51,707) (51,707) (58,840) (58,840)
Total $3,578,412 $3,614,490 $2,831,236 $2,820,861
</TABLE>
6. Dividend restriction
Certain series of installment certificates outstanding provide that
cash dividends may be paid by IDSC only in calendar years for which
additional credits of at least one-half of 1% on such series of
certificates have been authorized by IDSC. This restriction has
been removed for 1996 and 1997 by action of IDSC on additional
credits in excess of this requirement.
7. Fees paid to Parent and affiliated companies ($ not in
thousands)
A) The basis of computing fees paid or payable to Parent for
investment advisory and services is:
The investment advisory and services agreement with Parent provides
for a graduated scale of fees equal on an annual basis to 0.75% on
the first $250 million of total book value of assets of IDSC, 0.65%
on the next $250 million, 0.55% on the next $250 million, 0.50% on
the next $250 million and 0.45% 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.
B) The basis of computing fees paid or payable to American Express
Financial Advisors Inc. (an affiliate) for distribution services
is:<PAGE>
PAGE 40
Fees payable to American Express Financial Advisors Inc. on sales
of IDSC's certificates are based upon terms of agreements giving
American Express Financial Advisors 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% of the purchase price at
the time of issuance and 0.25% 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% 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% of
the purchase price on the first day of the certificate's term and
1.25% 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% of the daily average balance of the
certificate reserve maintained during the sixth through the 10th
year, respectively.
C) The basis of computing depositary fees paid or payable to
American Express Trust Company (an affiliate) is:
<TABLE><CAPTION>
<S> <C>
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
</TABLE>
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.<PAGE>
PAGE 41
D) 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:
1.25% of the reserves maintained for the certificates on an amount
from $100,000 to $249,000, 0.80% on an amount from $250,000 to
$499,000, 0.65% on an amount from $500,000 to $999,000 and
0.50% 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.
8. Income taxes
Income tax expense (benefit) as shown in the statement of
operations for the three years ended Dec. 31, consists of:
<TABLE><CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Federal:
Current ($6,285) ($8,743) ($19,777)
Deferred (2,652) 3,933 11,446
(8,937) (4,810) (8,331)
State (43) 100 349
($8,980) ($4,710) ($7,982)
</TABLE>
Income tax expense (benefit) differs from that computed by using
the U.S. Statutory rate of 35%. The principal causes of the
difference in each year are shown below:
<TABLE><CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Federal tax expense at U.S. statutory rate $6,307 $12,642 $13,178
Tax-exempt interest (3,339) (4,205) (4,929)
Dividend exclusion (12,166) (13,862) (17,326)
Change in statutory rates - - (406)
Other, net 261 615 1,152
Federal tax benefit ($8,937) ($4,810) ($8,331)
</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>
1995 1994
Deferred tax assets:
<S> <C> <C>
Certificate reserves $10,312 $4,315
Investment unrealized losses - 12,470
Investments 348 1,390
Investment reserves 843 1,120
Purchased/written call options - 283
Total deferred tax assets $11,503 $19,578
<PAGE>
PAGE 42
1995 1994
Deferred tax liabilities:
Investment unrealized gains $15,843 $-
Deferred distribution fees 9,900 9,500
Dividends receivable 892 1,000
Return of capital dividends 305 508
Purchased/written call options 1,623 -
Other, net 229 198
Total deferred tax liabilities 28,792 11,206
Net deferred tax assets (liabilities) ($17,289) $8,372
</TABLE>
9. Derivative financial instruments
IDSC enters into transactions involving derivative financial
instruments as an end user (nontrading). IDSC uses these
instruments to manage its exposure to interest rate risk, including
hedging specific transactions. IDSC manages risks associated with
these instruments as described below.
Market risk is the possibility that the value of the derivative
financial instrument will change due to fluctuations in a factor
from which the instrument derives its value, primarily an interest
rate or a major market index. IDSC is not impacted by market risk
related to derivatives held because derivatives are largely used to
manage risk and, therefore, the cash flows and income effects of
the derivatives are inverse to the effects of the underlying hedged
transactions.
Credit exposure is the possibility that the counterparty will not
fulfill the terms of the contract. IDSC monitors credit exposure
related to derivative financial instruments through established
approval procedures, including setting concentration limits by
counterparty, reviewing credit ratings and requiring collateral
where appropriate. The majority of IDSC's counterparties to the
interest rate caps are rated A or better by nationally recognized
rating agencies. The counterparties to the call options are five
major broker/dealers.
The notional or contract amount of a derivative financial
instrument is generally used to calculate the cash flows that are
received or paid over the life of the agreement. Notional amounts
do not represent market risk or credit exposure and are not
recorded on the balance sheet.
Credit exposure related to derivative financial instruments is
measured by the replacement cost of those contracts at the balance
sheet date. The replacement cost represents the fair value of the
instrument, and is determined by market values, dealer quotes or
pricing models.
IDSC's holdings of derivative financial instruments were as follows
at Dec. 31, 1995 and 1994.
<PAGE>
PAGE 43
<TABLE><CAPTION>
1995
Notional Total
or contract Carrying Fair credit
amount value value exposure
<S> <C> <C> <C> <C>
Assets:
Interest rate caps $970,000 $3,362 $2,128 $2,128
Purchased call options 152,406 27,138 24,161 24,161
Total $1,122,406 $30,500 $26,289 $26,289
Liabilities:
Written call options $157,951 $9,333 $10,394 $-
1994
Notional Total
or contract Carrying Fair credit
amount value value exposure
Assets:
Interest rate caps $1,020,000 $14,946 $24,727 $24,727
Purchased call options 191,496 7,770 8,886 8,886
Total $1,211,496 $22,716 $33,613 $33,613
Liabilities:
Written call options $189,443 $2,070 $1,779 $-
</TABLE>
The fair values of derivative financial instruments are based on
market values, dealer quotes or pricing models. The interest rate
caps expire on various dates from 1996 to 1997. The options expire
in 1996.
Interest rate caps and options are used to manage IDSC's exposure
to rising interest rates. These instruments are used primarily to
protect the margin between the interest rate earned on investments
and the interest rate accrued to related investment certificate
holders.
The interest rate caps are quarterly reset caps and IDSC earns
interest 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% to 9%. The cost
of these caps of $3,362 at Dec. 31, 1995 is being amortized over
the terms of the agreements on a straight line basis and is
included in other qualified assets. The amortization, net of any
interest earned, is included in investment expenses.
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.
<PAGE>
PAGE 44
The option contracts are less than one year in term. The premiums
paid or received on these index options are reported in other
qualified assets or other liabilities, as appropriate, and are
amortized into investment expenses over the life of the option.
The intrinsic value of these index options is also reported in
other qualified assets or other liabilities, as appropriate. The
unrealized gains and losses related to the changes in the intrinsic
value of these options are recognized currently in provision for
certificate reserves.
Following is a summary of open option contracts at Dec. 31, 1995
and 1994.
<TABLE><CAPTION>
1995
Face Average Index at
amount strike price Dec. 31,1995
<S> <C> <C> <C>
Purchased call options $152,406 539 616
Written call options 157,951 601 616
1994
Face Average Index at
amount strike price Dec. 31,1995
Purchased call options $191,496 460 459
Written call options 189,443 506 459
</TABLE>
10. Fair values of financial instruments
IDSC is required to disclose fair value information for most on-
and off-balance sheet financial instruments for which it is
practical to estimate that value. The carrying value of certain
financial instruments such as trade receivables and payables
approximates the fair value. Non-financial instruments, such as
deferred distribution fees, are excluded from required disclosure.
IDSC's off-balance sheet intangible assets, such as IDSC's name and
future earnings of the core business are also excluded. IDSC's
management believes the value of these excluded assets is
significant. The fair value of IDSC, therefore, cannot be
estimated by aggregating the amounts presented.
A summary of fair values of financial instruments as of Dec. 31, is
as follows:
<TABLE><CAPTION>
1995 1994
Carrying Fair Carrying Fair
value value value value
<S> <C> <C> <C> <C>
Financial assets
Cash equivalents (note 1) $68,943 $68,943 $152,912 $152,912
Investment securities (note 3) 3,411,396 3,456,922 2,472,467 2,479,083
First mortgage loans on real estate (note 4) 233,394 248,860 253,968 246,917
Derivative financial instruments (note 9) 30,500 26,289 22,716 33,613
Financial liabilities
Certificate reserves (note 5) 3,578,412 3,614,490 2,831,236 2,820,861
Derivative financial instruments (note 9) 9,333 10,394 2,070 1,779
</TABLE>
<PAGE>
PAGE 45
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY Schedule I
Investments in Securities of Unaffiliated Issuers
December 31, 1995
($ in thousands)
Bal. held
at 12-31-95
Principal
Amount of Cost Value at
Bonds (Notes 12-31-95
Name of Issuer and Titles of Issue and Notes a and c) (Note a)
---------------------------------- ----------- ---------- ----------
<S> <C> <C> <C>
BONDS AND NOTES
United States Government -
Direct Obligations
US TREASURY NOTE 7.625%, 1996 $ 250 $ 250 $ 252
US TREASURY BOND 6.875%, 2000 165 165 175
----------- ---------- ----------
Total U.S. Government - Direct Obligations 415 415 427
----------- ---------- ----------
Other Bonds and Notes
United States Government Agencies
FHLMC 7YR#G40116 GLD 6.000%, 2001 14,075 13,991 14,080 (f)
FHLMC 5 YR #G50152 7.000%, 1999 8,902 8,759 9,024 (f)
FHLMC 5YR*G50252 7.500%, 2000 35,793 36,000 37,001 (f)
FHLMC 5YR G50281 GOL 6.500%, 2000 24,589 24,739 24,842 (f)
FHLMC 15YR #G10336 7.500%, 2010 9,114 8,969 9,390 (f)
FHLMC 15YR #10342 7.000%, 2010 27,382 26,656 27,930 (f)
FHLMC 15YR #G10344 G 7.500%, 2010 22,601 22,498 23,286 (f)
FHLMC 15 #G10350 GLD 6.500%, 2010 26,441 26,377 26,623 (f)
FHLMC 15YR G10364 7.000%, 2010 23,387 23,260 23,855 (f)
FHLMC 15 6.5 #G10369 6.500%, 2010 47,307 46,690 47,572 (f)
FHLMC 15YR GOLD 6.500%, 2010 23,967 23,843 24,132 (f)
FHLMC 15YR G10428 6.000%, 2009 20,572 20,306 20,386 (f)
FHLMC ARM #845154 8.161%, 2022 7,528 7,767 7,702 (f)
FHLMC ARM #845523 7.857%, 2023 10,259 10,563 10,569 (f)
FHLMC ARM #845654 7.157%, 2024 29,359 29,800 30,139 (f)
FHLMC ARM #845730 7.958%, 2024 42,650 44,081 43,633 (f)
FHLMC ARM #845733 6.657%, 2024 43,265 44,054 44,210 (f)
FHLMC ARM #845973 7.652%, 2024 13,789 13,789 14,222 (f)
FHLMC ARM #845999 7.760%, 2027 30,121 30,390 31,033 (f)
FHLMC 30YR #846072 7.716%, 2022 8,704 8,929 8,974 (f)
FHLMC ARM #846107 7.376%, 2025 14,408 14,747 14,744 (f)
FHLMC 1268 E CMO 7.400%, 2016 10,000 10,026 10,049 (f)
FHLMC ARM #350190 8.500%, 2022 9,777 10,078 10,106 (f)
FHLMC 1379 C CMO 5.600%, 2011 12,632 12,561 12,586 (f)
FHLMC GOLD E00151 7.500%, 2017 10,522 10,818 10,841 (f)
FHLMC 15YR #E00383 7.000%, 2010 23,838 23,799 24,315 (f)
FHLMC 1717B PAC CMO 5.250%, 2008 16,377 16,133 16,308 (f)
FHLMC-GNMA 40 D CMO 6.500%, 2011 20,458 19,890 20,816 (f)
FHLMC 188537 (2) 5.750%, 1998 4 4 4 (f)
FHLMC 4C CMO 8.000%, 2017 6,569 6,598 6,656 (f)
FHLMC CTF SER B-76 8.375%, 2006 140 140 139 (f)
FHLMC CTF SER A-77 8.050%, 2007 63 63 63 (f)
FHLMC CTF SER B-77 8.125%, 2007 260 259 259 (f)
FHLMC 15YR #380025 9.500%, 2003 1,130 1,124 1,183
FHLMC 15 YR #200017 11.000%, 2000 747 764 791 (f)
</TABLE>
<PAGE>
PAGE 46
<TABLE>
<CAPTION>
Bal. held
at 12-31-95
Principal
Amount of Cost Value at
Bonds (Notes 12-31-95
Name of Issuer and Titles of Issue and Notes a and c) (Note a)
---------------------------------- ----------- ---------- ----------
<S> <C> <C> <C>
FHLMC 15 YR #200018 11.000%, 2000 483 494 511 (f)
FHLMC 15 YR #200020 11.000%, 2000 741 757 784 (f)
FHLMC 15 YR #200022 10.500%, 2000 151 154 160 (f)
FHLMC 15 YR #200035 9.000%, 2001 514 508 537 (f)
FHLMC 15 YR #200048 9.000%, 2001 1,174 1,155 1,226
FHLMC 15 YR #200064 8.000%, 2002 681 658 701 (f)
FHLMC 15 YR #212119 9.500%, 2001 222 223 232 (f)
FHLMC 15 YR #218648 9.500%, 2002 85 86 89 (f)
FHLMC 15 YR #219392 11.000%, 2001 230 236 244 (f)
FHLMC 15 YR #219679 9.500%, 2003 925 919 969 (f)
FHLMC 15 YR #219757 11.000%, 2003 3,014 3,140 3,191
FHLMC 15 YR #240001 9.500%, 1997 3,805 3,797 3,915
FHLMC 10 YR #490009 9.000%, 1997 2,626 2,625 2,741
FHLMC 10 YR #490011 10.000%, 1997 426 429 445 (f)
FHLMC 15 YR #500155 11.000%, 2001 657 672 696 (f)
FHLMC 15 YR #500294 11.000%, 2003 286 295 303 (f)
FHLMC 15 YR #500456 11.000%, 2002 376 386 398 (f)
FHLMC 15 YR #502175 10.500%, 2004 399 405 421 (f)
FHLMC ARM #605041 7.999%, 2019 790 790 816 (f)
FHLMC ARM #605048 7.695%, 2018 1,559 1,559 1,604 (f)
FHLMC ARM #605050 7.849%, 2018 608 608 627 (f)
FHLMC ARM 605079 WAC 7.785%, 2018 1,742 1,742 1,793 (f)
FHLMC ARM 605175 WAC 7.822%, 2019 3,963 3,963 4,085 (f)
FHLMC ARM #605352 7.621%, 2018 3,468 3,468 3,567 (f)
FHLMC ARM #401587 8.000%, 2018 2,483 2,483 2,567 (f)
FHLMC ARM #630048 7.750%, 2018 313 313 320 (f)
FHLMC ARM #630074 7.875%, 2018 691 691 706 (f)
FHLMC ARM 840031 WAC 8.038%, 2019 612 612 632 (f)
FHLMC ARM #840035 7.714%, 2019 1,746 1,746 1,795 (f)
FHLMC ARM #840036 7.793%, 2019 2,341 2,341 2,413 (f)
FHLMC ARM #840045 7.548%, 2019 4,282 4,282 4,403 (f)
FHLMC ARM #840072 8.055%, 2019 2,513 2,513 2,551 (f)
FHLMC ARM #405014 7.667%, 2019 1,152 1,152 1,186 (f)
FHLMC ARM #405092 7.564%, 2019 1,831 1,831 1,884 (f)
FHLMC ARM #405185 7.592%, 2018 2,834 2,834 2,916 (f)
FHLMC ARM #405243 8.052%, 2019 1,213 1,213 1,253 (f)
FHLMC ARM #405249 8.298%, 2018 3,642 3,642 3,760 (f)
FHLMC ARM #405360 7.770%, 2019 986 986 1,016 (f)
FHLMC ARM #405437 7.815%, 2019 418 418 431 (f)
FHLMC ARM #405455 7.803%, 2019 1,888 1,888 1,947 (f)
FHLMC ARM #405517 7.832%, 2019 647 647 667 (f)
FHLMC ARM #405615 7.571%, 2019 1,000 1,000 1,029 (f)
FHLMC ARM #405675 8.483%, 2020 2,217 2,217 2,290 (f)
FHLMC ARM #405692 8.491%, 2020 3,179 3,179 3,283 (f)
FHLMC ARM #405744 8.358%, 2020 2,124 2,124 2,195 (f)
FHLMC ARM #605432 7.628%, 2017 912 912 938 (f)
FHLMC ARM #605433 7.684%, 2017 2,085 2,085 2,146 (f)
FHLMC ARM #605454 8.028%, 2017 5,888 5,888 6,073 (f)
FHLMC ARM 605853 WAC 8.177%, 2019 4,539 4,539 4,686 (f)
FHLMC ARM #605854 7.725%, 2019 4,164 4,164 4,289 (f)
FHLMC ARM #606024 7.154%, 2019 1,727 1,727 1,770 (f)
FHLMC ARM #606025 7.114%, 2019 6,443 6,443 6,600 (f)
</TABLE>
<PAGE>
PAGE 47
<TABLE>
<CAPTION>
Bal. held
at 12-31-95
Principal
Amount of Cost Value at
Bonds (Notes 12-31-95
Name of Issuer and Titles of Issue and Notes a and c) (Note a)
---------------------------------- ----------- ---------- ----------
<S> <C> <C> <C>
FHLMC ARM #606151 7.807%, 2019 5,346 5,346 5,511 (f)
FHLMC ARM #635054 7.897%, 2020 379 379 390 (f)
FHLMC ARM #785363 7.001%, 2025 17,716 17,958 18,082 (f)
FHLMC ARM #865008 7.980%, 2018 8,602 8,602 8,753 (f)
FHLMC LOANS #885005 9.500%, 2002 2,102 2,088 2,201 (f)
FHLMC LOANS #885008 10.000%, 2003 3,315 3,336 3,484 (f)
FHLMC 15 YR #885009 9.500%, 2003 4,948 4,917 5,180
FHLMC ARM #606301 8.136%, 2020 7,411 7,411 7,657 (f)
FHLMC ARM #606903 7.387%, 2022 2,485 2,508 2,516 (f)
FHLMC 15 YR #E40290 8.500%, 2007 5,598 5,957 5,836 (f)
FNMA 1991 48 G 7.800%, 2004 2,632 2,630 2,632
FNMA 1991 50 G 7.750%, 2004 891 891 889 (f)
FNMA 1991 132 CL E 8.000%, 2010 2,197 2,195 2,192
FNMA 92 12 H 6.625%, 2019 13,780 13,780 13,773 (f)
FNMA 1992-5 C 7.000%, 2016 5,116 5,087 5,125 (f)
FNMA 92-21D VANILLA 6.650%, 2018 3,404 3,351 3,405 (f)
FNMA 92-185A CMO PAC 5.600%, 2010 5,100 5,094 5,079 (f)
FNMA 92 203 E CMO 6.250%, 2005 10,000 9,689 10,074 (f)
FNMA 93-62 B CMO 6.500%, 2017 8,782 8,444 8,787 (f)
FNMA 93-163 PB CMO 4.750%, 2008 13,549 13,494 13,480 (f)
FNMA 94 34 PE CMO 5.750%, 2006 9,785 9,765 9,758 (f)
FNMA 95 2 T CMO 8.500%, 2021 10,000 9,987 10,233 (f)
FNMA 95-T2 A3 CMO 6.610%, 2018 10,000 9,994 10,050 (f)
FNMA 15 YR #2469 11.000%, 2000 37 38 40 (f)
FNMA 15 YR #13157 11.000%, 2000 50 51 53 (f)
FNMA 15 YR #13548 11.000%, 2000 97 99 103 (f)
FNMA 15 YR #13705 11.000%, 2000 106 108 113 (f)
FNMA 15 YR #18275 11.000%, 2000 11 12 12 (f)
FNMA 15 YR #18745 11.000%, 2000 19 19 20 (f)
FNMA 15 YR #18986 11.000%, 2000 12 13 13 (f)
FNMA 15 YR #19070 11.000%, 2000 11 11 11 (f)
FNMA 15 YR #19261 11.000%, 2000 60 61 63 (f)
FNMA 15 YR #22271 11.000%, 2000 49 50 53 (f)
FNMA 15 YR #22405 11.000%, 2000 121 124 129 (f)
FNMA 15 YR #22569 11.000%, 2000 152 155 161 (f)
FNMA 15 YR #22674 11.000%, 2000 50 51 53 (f)
FNMA 15 YR #25899 11.000%, 2001 33 34 35 (f)
FNMA 30 YR #27880 9.000%, 2016 150 155 158 (f)
FNMA 15 YR #34543 9.250%, 2001 524 523 555 (f)
FNMA 30 YR #36225 9.000%, 2016 317 323 334 (f)
FNMA 30 YR #040877 9.000%, 2017 197 202 208 (f)
FNMA 15 YR #50682 7.000%, 2008 13,577 13,931 13,840 (f)
FNMA 15 YR #50730 6.500%, 2008 19,465 19,670 19,587 (f)
FNMA 15 6.0 #50973 6.000%, 2009 48,574 47,410 48,149 (f)
FNMA 30 YR #51617 10.000%, 2017 371 373 408 (f)
FNMA 30 YR #52185 10.000%, 2017 79 79 86 (f)
FNMA 30 YR #52596 10.000%, 2017 19 19 21 (f)
FNMA 15 YR #58405 11.000%, 2003 34 35 37 (f)
FNMA 15 YR #64520 11.000%, 2001 109 111 116 (f)
FNMA 15 YR #64523 11.000%, 2000 170 173 180 (f)
FNMA 15 YR #66458 10.000%, 2004 5,245 5,298 5,533
FNMA ARM #70007 MEGA 7.297%, 2017 2,899 2,899 2,987 (f)
</TABLE>
<PAGE>
PAGE 48
<TABLE>
<CAPTION>
Bal. held
at 12-31-95
Principal
Amount of Cost Value at
Bonds (Notes 12-31-95
Name of Issuer and Titles of Issue and Notes a and c) (Note a)
---------------------------------- ----------- ---------- ----------
<S> <C> <C> <C>
FNMA ARM #70009 MEGA 7.479%, 2018 4,540 4,540 4,688 (f)
FNMA ARM #70117 7.596%, 2017 973 973 1,005 (f)
FNMA ARM #70202 7.857%, 2019 3,205 3,205 3,315 (f)
FNMA 15 YR #70299 10.750%, 2001 465 477 493 (f)
FNMA 15 YR 70694 MEG 9.500%, 2005 3,222 3,249 3,399
FNMA #73227 MULT-FAM 6.700%, 2005 3,151 3,191 3,142 (f)
FNMA ARM #79384 8.290%, 2019 1,147 1,147 1,189 (f)
FNMA ARM #88879 8.849%, 2019 4,083 4,083 4,293 (f)
FNMA ARM #89125 7.624%, 2019 8,912 9,117 8,967 (f)
FNMA ARM #92069 FLEX 7.890%, 2018 4,463 4,463 4,617 (f)
FNMA ARM #93787 7.819%, 2019 3,988 3,988 4,122 (f)
FNMA ARM #97822 7.972%, 2020 843 843 874 (f)
FNMA ARM #105989 8.292%, 2020 2,615 2,615 2,733 (f)
FNMA 15YR #124848 8.000%, 2008 19,916 19,859 20,650 (f)
FNMA 15 YR #125136 8.000%, 2007 14,695 15,607 15,237 (f)
FNMA 15YR #190175 6.000%, 2008 16,989 16,748 16,840 (f)
FNMA 15YR 190534 6.000%, 2008 24,733 24,347 24,516
FNMA ARM #190726 7.870%, 2033 18,288 18,673 18,871 (f)
FNMA 7YR 190778 BALN 6.000%, 2001 62,454 61,682 62,435 (f)
FNMA ARM #249907 5.897%, 2024 24,540 24,916 25,469 (f)
FNMA 10YR #303115 6.500%, 2004 21,357 20,069 21,691 (f)
FNMA ARM #303259 7.699%, 2025 10,227 10,521 10,574 (f)
FNMA 15YR #303445 5.500%, 2009 24,138 23,042 23,549 (f)
FNMA 7YR #303448 BLN 6.500%, 2002 28,149 28,191 28,484 (f)
GNMA ARM 1 YR #8157 6.500%, 2023 8,301 8,449 8,433 (f)
GNMA ARM #8206 6.750%, 2017 1,777 1,777 1,802 (f)
GNMA ARM #8240 7.250%, 2017 1,304 1,287 1,330 (f)
GNMA ARM #8251 7.250%, 2017 105 105 107 (f)
GNMA ARM #8274 6.750%, 2017 3,534 3,531 3,584 (f)
GNMA ARM #8283 6.750%, 2017 454 453 461 (f)
GNMA ARM #8293 6.750%, 2017 771 770 781 (f)
GNMA ARM #8341 7.375%, 2018 196 195 200 (f)
GNMA ARM #8353 7.375%, 2018 1,509 1,499 1,540 (f)
GNMA ARM #8365 7.375%, 2018 2,789 2,788 2,846 (f)
GNMA ARM #8377 7.250%, 2018 1,211 1,208 1,236 (f)
GNMA ARM #8428 6.750%, 2018 515 515 523 (f)
GNMA ARM #8440 6.750%, 2018 1,308 1,308 1,327 (f)
GNMA ARM #8638 6.000%, 2025 98,798 99,683 99,785 (f)
GNMA PL 2480 5.250%, 1997 6 6 6 (f)
CSFBMSC95-FHA1 A1CMO 6.665%, 2025 9,976 9,976 10,038 (f)
CMO TR14-A1 FLOATER 6.513%, 2009 77 77 77 (f)
CMOT 14-A2 INV 12.370%, 2009 26 21 26 (f)
----------- ---------- ----------
Total United States Government Agencies 1,374,951 1,375,528 1,396,664
----------- ---------- ----------
Municipal Bonds
Alabama
AL CORRECTIONS INST 7.300%, 1999 1,500 1,498 1,557 (b)(f)
AL CORRECTIONS INST 7.400%, 2000 1,500 1,498 1,558 (b)(f)
</TABLE>
<PAGE>
PAGE 49
<TABLE>
<CAPTION>
Bal. held
at 12-31-95
Principal
Amount of Cost Value at
Bonds (Notes 12-31-95
Name of Issuer and Titles of Issue and Notes a and c) (Note a)
---------------------------------- ----------- ---------- ----------
<S> <C> <C> <C>
Alaska
ANCHORAGE AK WTR RV 7.100%, 2000 785 783 805 (b)(f)
California
SOUTHERN CA PUB PWR 6.900%, 1999 1,000 992 1,040 (b)(f)
SOUTHERN CA PUB PWR 7.000%, 2000 1,215 1,203 1,264 (b)(f)
Florida
FLORIDA MUNI POWER 7.200%, 2000 3,450 3,429 3,613 (b)(f)
Georgia
ATLANTA GA REC AUTH 8.000%, 1997 1,000 999 1,019 (b)(f)
MUNI ELEC AUTH GA 86A 7.500%, 1999 1,000 1,000 1,020 (b)(f)
MUNI ELEC AUTH GA 86A 7.600%, 2000 1,000 1,000 1,020 (b)(f)
MUNI ELEC AUTH GA 86A 7.700%, 2001 1,330 1,325 1,357 (b)(f)
MET ATLANTA GA RTA 8.000%, 1996 2,000 1,999 2,043 (b)(f)
Illinois
CHICAGO IL SAN DIST 9.250%, 2000 1,000 1,077 1,185 (b)(f)
CHICAGO IL GAS SPY SRC 7.500%, 2015 4,500 4,500 4,997 (b)(f)
CHICAGO IL BLDG REV 8.000%, 1997 3,000 2,996 3,132 (b)(f)
CHICAGO IL BLDG COMM 8.000%, 1998 1,800 1,792 1,940 (b)(f)
ROSEMOUNT IL GO BNDS 8.300%, 1997 1,520 1,519 1,551 (b)(f)
ROSEMOUNT IL GO BNDS 8.400%, 1998 1,000 998 1,020 (b)(f)
Indiana
INDIANAPOLIS IN ARPT 8.100%, 1996 375 375 383 (b)(f)
INDIANAPOLIS IN ARPT 8.300%, 1997 1,100 1,100 1,146 (b)(f)
INDIANAPOLIS IN ARPT 8.500%, 1998 750 750 782 (b)(f)
INDIANAPOLIS IN REV 7.600%, 1999 1,000 998 1,030 (b)(f)
INDIANAPOLIS IN REV 7.700%, 2000 1,000 998 1,059 (b)(f)
Louisiana
LAFAYETTE LA PUB 1MP 7.300%, 1999 975 975 1,007 (b)(f)
LOUISIANA GO BNDS 86A 7.375%, 2000 4,900 4,888 5,060 (b)(f)
LOUISIANA CORREC FAC 7.300%, 1999 925 927 949 (b)(f)
LOUISIANA CORREC FAC 7.400%, 2000 500 501 513 (b)(f)
Minnesota
WEST MN MUNI POWER 10.250%, 2015 3,120 3,385 3,657 (b)(f)
New Jersey
OCEAN COUNTY NJ UTIL 8.150%, 1997 400 400 418 (b)(f)
OCEAN COUNTY NJ UTIL 8.250%, 1998 500 499 510 (b)(f)
OCEAN COUNTY NJ UTIL 8.300%, 1999 4,000 3,993 4,081 (b)(f)
New York
NY MUNI ASSIST CORP 7.000%, 2000 2,100 2,068 2,175 (b)(f)
NEW YORK CITY GO 9.750%, 1996 8,000 7,995 8,194 (b)(f)
NEW YORK CITY NT GO 7.750%, 2000 1,700 1,700 1,744 (b)(f)
NEW YORK PWR AUTH 9.500%, 2001 445 471 497 (b)(f)
</TABLE>
<PAGE>
PAGE 50
<TABLE>
<CAPTION>
Bal. held
at 12-31-95
Principal
Amount of Cost Value at
Bonds (Notes 12-31-95
Name of Issuer and Titles of Issue and Notes a and c) (Note a)
---------------------------------- ----------- ---------- ----------
<S> <C> <C> <C>
North Carolina
NC EAST MUNI POWER 7.500%, 2000 3,245 3,212 3,343 (b)(f)
NC MUNI POWER 8.300%, 1996 900 900 900 (b)(f)
NC MUNI POWER 8.400%, 1997 2,000 2,000 2,047 (b)(f)
NC MUNI POWER 8.500%, 1998 2,000 2,000 2,041 (b)(f)
Pennsylvania
WY VALLEY PA SWR 5.125%, 2007 145 145 148 (b)(f)
Tennessee
KNOXVL TN GO SER 0 7.150%, 2000 3,490 3,483 3,590 (b)(f)
NASHVL CTY TN SE 85B 7.800%, 1996 835 835 835 (b)(f)
NASHVL CTY TN SE 85B 7.900%, 1997 710 710 724 (b)(f)
NASHVL CTY TN SE 85B 8.000%, 1998 1,000 1,000 1,020 (b)(f)
Texas
AUSTIN TX UTILITY 10.750%, 2015 3,735 4,232 4,692 (b)(f)
DALLAS TX CIVIC CENT 10.900%, 1996 850 850 850 (b)(f)
DALLAS TX CIVIC CENT 8.100%, 1997 925 925 944 (b)(f)
DALLAS TX CIVIC CENT 8.200%, 1998 1,025 1,024 1,047 (b)(f)
HARRIS CNTY TX TOLL 10.375%, 2014 5,300 5,593 5,969 (b)(f)
District of Columbia
DIST OF COLUMBIA GO 7.600%, 1997 4,900 4,895 5,063 (b)(f)
DIST OF COLUMBIA GO 7.600%, 1997 1,950 1,991 2,020 (b)(f)
DIST OF COLUMBIA GO 86B 7.750%, 2000 1,000 1,002 1,037 (b)(f)
Washington
KENT SCH DIST 415 WA 7.100%, 1997 1,320 1,319 1,363 (b)(f)
KENT SCH DIST 415 WA 7.200%, 1998 1,620 1,617 1,674 (b)(f)
PIERCE CTY WA SE REV 8.000%, 1996 3,035 3,035 3,047 (b)(f)
----------- ---------- ----------
Total Municipal Bonds 100,375 101,399 105,680
----------- ---------- ----------
Public Utility
BAROID CORP 8.000%, 2003 5,000 4,985 5,325
BELL ATLANTIC FINL 5.300%, 1998 5,000 4,698 4,957 (f)
CHEVRON-HOWARD BELL 7.700%, 1997 220 219 220 (b)(d)
COLUMBIA GAS SYS 6.390%, 2000 10,000 10,040 10,167 (f)
DETROIT EDISON 6.280%, 2000 7,000 6,938 7,089 (f)
GTE CORP 8.850%, 1998 3,000 3,067 3,181 (f)
HANNA M A 9.000%, 1998 5,000 5,087 5,331
INTL SPECIALTY PROD 9.000%, 1999 15,000 15,321 15,533
JERSEY CENTRAL P&L 6.040%, 2000 5,000 5,001 5,015
KANSAS CITY P&L 7.340%, 1999 10,000 10,000 10,456
NORAM ENERGY CORP 7.500%, 2000 5,000 4,975 5,170 (f)
OCCIDENTAL PETROLEUM 6.410%, 2000 5,000 4,949 5,090 (f)
ORYX ENERGY 8.650%, 1999 15,000 15,000 15,544
PDV AMERICA 7.250%, 1998 3,000 2,993 2,923 (f)
PDV AMERICA 7.750%, 2000 7,000 7,018 6,796 (f)
PACIFIC GAS TRANS 6.640%, 2000 5,000 5,000 5,136 (f)
PENN POWER CO 9.000%, 1996 5,000 4,997 5,144
</TABLE>
<PAGE>
PAGE 51
<TABLE>
<CAPTION>
Bal. held
at 12-31-95
Principal
Amount of Cost Value at
Bonds (Notes 12-31-95
Name of Issuer and Titles of Issue and Notes a and c) (Note a)
---------------------------------- ----------- ---------- ----------
<S> <C> <C> <C>
PRAXAIR INC 6.750%, 2003 5,000 4,720 5,130 (f)
PUBLIC SERVICE E & G 7.100%, 1997 5,000 5,001 5,090 (f)
SALTON SEA 144A CL A 6.690%, 2000 9,016 9,016 9,200 (d)(f)
SHELL OIL CO 7.700%, 1996 9,600 9,613 9,617 (f)
SW BELL CAPITAL CORP 7.900%, 1996 9,000 8,995 9,172
TEXAS UTILITIES 6.370%, 2000 10,000 10,000 10,119 (f)
TOSCO CORP 7.000%, 2000 5,000 4,993 5,121 (f)
NOVACOR CHEMICALS 6.500%, 2000 10,000 9,964 10,177 (d)(f)
----------- ---------- ----------
Total Public Utility 172,836 172,590 176,703
----------- ---------- ----------
Finance
AT&T CAPITAL CORP 6.990%, 1996 7,000 6,991 7,073 (f)
AT&T CAPITAL 6.200%, 2000 5,000 4,991 5,041 (f)
ALCO CAPITAL RES 7.330%, 1998 10,000 10,000 10,321 (f)
AMERICAN GEN FINANCE 7.850%, 1997 2,000 2,002 2,077 (f)
AMERICAN GENERAL FIN 6.470%, 2000 10,000 10,087 10,230 (f)
ARISTAR FINL 7.875%, 1999 3,000 2,996 3,182 (f)
ARISTAR INC 6.300%, 2000 15,000 14,987 15,247 (f)
BANK OF AMERICA 9.750%, 2000 10,000 10,450 11,505
BENEFICIAL CORP 9.250%, 1996 5,000 5,057 5,123 (f)
BENEFICIAL CORP 6.450%, 2000 10,000 10,057 10,212 (f)
CIT GROUP HOLDINGS 4.750%, 1996 10,650 10,604 10,628 (f)
CIT GROUP HOLDINGS 7.000%, 1997 5,000 4,973 5,120 (f)
CENTRAL FIDELITY 4.785%, 1996 5,000 4,991 4,994 (f)
COMDISCO INC 7.250%, 1998 10,000 9,982 10,304
COMMERCIAL CREDIT 8.250%, 2001 9,000 8,897 10,024 (f)
COUNTRYWIDE FUNDING 8.420%, 1999 19,700 19,675 21,145
DART KRAFT FIN 7.750%, 1998 1,000 1,029 1,053 (f)
JOHN DEERE CAPITAL 6.250%, 2000 2,500 2,504 2,548 (f)
JOHN DEERE CAPITAL 6.280%, 2000 5,000 5,018 5,102 (f)
FIDELITY ACCEPTANCE 6.670%, 1997 15,000 15,000 15,096 (b)(d)(f)
FINOVA CAPL CORP 6.840%, 2000 3,000 3,003 3,106 (f)
FIRST SEC BANK UTAH 6.880%, 1996 10,000 9,985 10,123 (f)
FIRST USA DEP NT 6.375%, 2000 5,000 4,985 5,068 (f)
FIRSTAR CORP 7.150%, 2000 12,000 12,000 12,483 (f)
GE CAPITAL CORP 8.125%, 1999 12,000 12,268 12,838 (f)
GREAT WESTERN FINL 6.375%, 2000 3,000 2,990 3,040 (f)
GREENTREE FIN94-1 A1 5.600%, 2019 9,928 9,767 9,926 (f)
GREENTREE FIN94-4 A1 6.550%, 2019 10,167 10,140 10,277 (f)
GREENTREE FIN94-5 A1 6.600%, 1998 12,601 12,600 12,698 (f)
GREENTREE FIN94-6 A1 6.350%, 2019 1,236 1,236 1,239 (f)
GREENTREE FIN94-7 A1 6.700%, 2020 1,689 1,689 1,708 (f)
GREENTREE FIN95-5 A1 5.950%, 2025 14,735 14,731 14,809 (f)
HELLER FINANCIAL 8.000%, 1998 15,000 14,976 15,870
HELLER FINANCIAL 6.500%, 2000 8,000 8,002 8,105 (f)
HERTZ CORP 9.770%, 1996 10,000 10,000 10,028
HERTZ CORP 9.750%, 1996 5,000 5,000 5,014
HOUSEHOLD FINANCE 9.910%, 1996 5,000 5,000 5,000
HOUSEHOLD FINANCE 6.375%, 2000 6,775 6,794 6,890 (f)
HUNTINGTON NATL BANK 4.480%, 1996 12,000 11,746 11,938 (f)
INTL LEASE FINANCE 7.950%, 1999 12,000 11,987 12,734 (f)
</TABLE>
<PAGE>
PAGE 52
<TABLE>
<CAPTION>
Bal. held
at 12-31-95
Principal
Amount of Cost Value at
Bonds (Notes 12-31-95
Name of Issuer and Titles of Issue and Notes a and c) (Note a)
---------------------------------- ----------- ---------- ----------
<S> <C> <C> <C>
INTL LEASE FINANCE 6.375%, 1996 6,000 5,984 6,038 (f)
KEYCORP SENIOR 7.430%, 2000 4,000 3,994 4,247 (f)
MBNA 7.540%, 2001 10,000 9,991 10,696
MBNA CORP 6.500%, 2000 5,000 4,998 5,104 (f)
MARGARETTEN FIN'L 6.750%, 2000 15,250 15,419 15,666 (f)
MELLON FINANCIAL 6.300%, 2000 10,000 9,953 10,211 (f)
MERIDIAN BANCORP 6.625%, 2000 5,000 5,056 5,146 (f)
NCB CAPITAL SER A 8.180%, 1997 8,000 8,000 8,215 (b)(d)
NATIONSBANK TEXAS 6.750%, 2000 12,000 12,047 12,455 (f)
NATIONSBANK CORP 7.500%, 1997 5,000 4,998 5,111 (f)
NORWEST FINANCIAL 7.250%, 2000 4,500 4,492 4,745
ORIX CREDIT ALLIANCE 8.040%, 1997 10,000 10,000 10,273 (b)(d)
ORIX CREDIT ALLIANCE 7.560%, 1997 5,000 5,000 5,146 (b)(d)(f)
PENSKE TRUCK LEASING 6.670%, 2000 13,000 13,008 13,307 (f)
PENSKE TRUCK LEASING 7.750%, 1999 3,000 3,072 3,161 (f)
PROVIDENT BANK 5.000%, 1996 7,000 6,949 6,998 (f)
PROVIDENT BANK 6.125%, 2000 5,000 4,988 5,019
PRU HOME 90-09 A1 9.500%, 1997 739 737 736
SBMS VII 91-1 B1 9.700%, 2006 1,813 1,813 1,779 (f)
SALOMON INC INDEX AM 7.070%, 2000 25,000 25,000 25,460 (f)
SAXON 95-1 A2 ARM 7.080%, 2025 4,349 4,411 4,442 (f)
SOCIETY NAT'L CLEV 6.875%, 1996 9,700 9,672 9,810 (f)
TRANSAMERICA FINANCE 9.260%, 1998 5,000 4,994 5,354
UCFC 95 BA-2 ASSET B 6.600%, 2009 10,000 10,040 10,113 (f)
UCFC 95 CA2 ASSET BK 6.575%, 2011 10,000 10,029 10,116 (f)
USL CAPITAL 9.400%, 1996 15,000 15,000 15,016
WACHOVIA BANK NTS 6.600%, 1997 15,000 14,948 15,283 (f)
WELLSFORD RESID PROP 7.250%, 2000 5,000 4,971 5,471 (f)
XEROX CREDIT 6.840%, 2000 5,000 5,021 5,116 (f)
----------- ---------- ----------
Total Finance 563,332 563,775 579,153
----------- ---------- ----------
Industrial
ADT OPERATIONS INC 8.250%, 2000 5,000 5,064 5,300 (f)
AMERICAN STANDARD 10.875%, 1999 1,000 1,085 1,103 (f)
APPLIED MATERIALS 6.650%, 2000 5,000 5,000 5,151 (f)
BAUSCH & LOMB 6.800%, 1996 3,500 3,492 3,542 (f)
BELL & HOWELL CO 9.250%, 2000 2,000 2,024 2,055 (f)
BROWN GROUP 8.600%, 1999 5,000 5,000 4,971
BURLINGTON NORTHERN 6.375%, 2005 5,000 4,997 5,038
CSX 9.230%, 1998 13,500 13,500 14,438
CATERPILLAR FINANCE 6.960%, 1998 5,000 4,937 5,150 (f)
CATERPILLAR FINANCE 4.640%, 1996 5,000 4,951 4,970 (f)
CENTEX CORP 9.050%, 1996 10,000 10,000 10,116
CHAMPION INTL 9.800%, 1998 10,000 9,995 10,777
CHRYSLER FINANCE 7.700%, 1998 10,000 9,905 10,474 (f)
CHRYSLER FINANCE 7.590%, 2000 5,000 5,001 5,282 (f)
CINCINNATI MILACRON 7.875%, 2000 5,000 5,109 5,201 (d)(f)
COCA-COLA CO 7.750%, 1996 3,700 3,707 3,709 (f)
COLUMBIA/HCA HLTHCRE 6.410%, 2000 10,000 10,027 10,200 (f)
CONT'L CABLEVISION 8.300%, 2006 4,000 3,987 4,025
COOPER INDUSTRIES 7.750%, 1996 10,000 10,071 10,180 (f)
</TABLE>
<PAGE>
PAGE 53
<TABLE>
<CAPTION>
Bal. held
at 12-31-95
Principal
Amount of Cost Value at
Bonds (Notes 12-31-95
Name of Issuer and Titles of Issue and Notes a and c) (Note a)
---------------------------------- ----------- ---------- ----------
<S> <C> <C> <C>
COX COMMUNICATION 6.375%, 2000 25,000 24,885 25,379 (f)
DARLING DELAWARE 11.000%, 2000 3,308 3,329 3,316 (f)
DELTA AIRLINES 9.875%, 1998 8,100 8,100 8,686
DURR FILLAUER 7.000%, 2006 20,000 20,068 19,550 (f)
ENTERPRISE RENT-A-CAR 8.750%, 1999 5,000 4,998 5,449 (b)(d)
ENTERPRISE RENT-A-CAR 7.875%, 1998 5,000 4,999 5,183 (b)(d)(f)
FORD MOTOR CREDIT 6.375%, 2000 10,000 10,125 10,173
FOUNDATION HLTH CORP 7.750%, 2003 4,500 4,485 4,756 (f)
GATC 6.320%, 2000 10,000 9,981 10,107 (f)
GMAC 7.650%, 1997 10,000 9,992 10,229 (f)
GMAC 7.750%, 1999 20,000 19,875 21,093 (f)
ITT CORP 6.250%, 2000 5,000 4,983 5,041 (f)
ILLINOIS CENTRAL 6.270%, 1998 5,000 5,004 5,062 (f)
INTEGON CORP 9.500%, 2001 2,000 1,977 2,193
KAUFMAN & BROAD HOME 10.375%, 1999 1,000 996 1,019
LA QUINTA MOTOR 9.250%, 2003 2,000 2,114 2,127 (f)
LOCKHEED CORP 4.875%, 1996 10,000 9,978 9,993 (f)
LONE STAR INDUSTRIES 10.000%, 2003 657 635 659 (b)(f)
MGM GRAND HOTEL FIN 11.750%, 1999 2,000 2,127 2,130 (f)
MARK IV IND INC 8.750%, 2003 2,000 1,817 2,095
MATTEL INC 6.875%, 1997 15,000 14,962 15,270 (f)
NEWS AMER HLDGS 7.500%, 2000 10,000 9,956 10,467 (f)
PACCAR FIN SER 3 7.940%, 1997 8,250 8,240 8,474 (f)
PARAMOUNT COMMUN 5.875%, 2000 5,350 5,190 5,239 (f)
QUAKER OATS 6.940%, 2003 1,500 1,504 1,579 (f)
QUAKER OATS 6.470%, 2000 10,000 10,047 10,248 (f)
REYNOLDS METALS 9.750%, 1996 10,000 9,995 10,359
ROSEBUD HOLDINGS INC 10.000%, 1997 40 38 36 (b)(f)
RYDER SYSTEM 5.530%, 1997 7,500 7,305 7,494 (f)
RYDER SYSTEM 7.910%, 2000 5,000 5,042 5,367 (f)
RYDER SYSTEMS INC 7.330%, 2000 5,000 5,105 5,298 (f)
SEALY CORP 9.500%, 2003 4,275 4,315 4,350
SEARS 7.620%, 1997 5,000 4,979 5,180 (f)
SEARS 7.420%, 1998 10,000 10,010 10,364 (f)
SEARS ROEBUK ACC 6.500%, 2000 5,000 5,022 5,102 (f)
SERVICE CO INTL 6.375%, 2000 10,500 10,492 10,720 (f)
SERVICE MERCHANDISE 8.375%, 2001 1,000 854 960
SHOWBOAT INC 9.250%, 2008 1,000 834 1,008
SUNAMERICA 9.000%, 1999 20,000 20,000 21,660
SUPERVALU INC 6.500%, 2000 5,000 4,995 5,118 (f)
SUPERVALU INC 7.250%, 1999 8,000 7,945 8,357 (f)
TENET HEALTHCARE CO 8.625%, 2003 7,000 6,977 7,359 (f)
TYSON FOODS 6.410%, 2000 10,000 10,010 10,237 (f)
UNITED AIR 1991A-1 9.200%, 2008 4,741 4,377 5,320
US WEST CAP FDG INC 8.000%, 1996 16,785 16,951 17,085 (f)
U.S. WEST CAP FUNDIN 6.200%, 2000 5,000 4,991 5,031 (f)
VIACOM INC 6.750%, 2003 5,000 4,995 5,047
WMX TECHNOLOGIES 6.250%, 2000 3,500 3,504 3,562 (f)
WAXMAN IND LIBOR 9.455%, 1998 7,500 7,439 6,750 (d)(f)
WHITMAN CORP 6.250%, 2000 5,000 4,930 5,084 (f)
WHITMAN CORP 8.110%, 1997 12,500 12,497 12,811 (f)
BROWNING FERRIS CVT 6.750%, 2005 7,345 6,282 7,382 (f)
</TABLE>
<PAGE>
PAGE 54
<TABLE>
<CAPTION>
Bal. held
at 12-31-95
Principal
Amount of Cost Value at
Bonds (Notes 12-31-95
Name of Issuer and Titles of Issue and Notes a and c) (Note a)
---------------------------------- ----------- ---------- ----------
<S> <C> <C> <C>
FIBERGLASS CAD INC 9.800%, 1998 5,000 5,109 5,426 (d)
REPAP NEW BRUNSWICK 9.875%, 2000 7,000 7,164 7,052 (f)
STENA AB 10.500%, 2005 3,000 3,000 3,045
TARKETT 9.00 9.000%, 2002 1,000 1,022 1,074 (d)(f)
TELEWEST PLC 9.625%, 2006 2,000 2,000 2,045
----------- ---------- ----------
Total Industrial 518,051 516,398 532,882
----------- ---------- ----------
Total Other Bonds and Notes 2,729,545 2,729,690 2,791,082
----------- ---------- ----------
Total Bonds and Notes 2,729,960 2,730,105 2,791,509
----------- ---------- ----------
Bal. Held
at 12-31-95 Cost Value at
Number of (Notes 12-31-95
Shares a and c) (Note a)
----------- ---------- ----------
Preferred Stock
Public Utility
ALLTEL 7.75 $100 PAR 7.75P%, 2005 27,046 2,729 2,732 (d)
AMERICAN WTRWRKS $25 8.500%, 2000 800,000 20,000 22,072 (b)(d)
APPALACHIAN PWR $100 6.85 %, 2004 30,000 3,005 3,216
APPALACHIAN PWR $100 5.90 %, 2008 10,000 996 1,013 (f)
APPALACHIAN PWR $100 5.92 %, 2008 11,000 1,088 1,089
ARIZONA PUB SER V 7.875%, 2007 7,500 789 806 (f)
ARIZONA PUB SVC $100 10.00 %, 2001 50,000 5,000 5,578
ARKANSAS P & L $25 9.920%, 2002 181,079 4,739 4,708
ATLANTIC CITY EL 100 7.80 %, 2006 90,000 8,987 10,036
ATLANTIC CITY EL 100 8.20 %, 2000 82,500 8,241 8,823
ATLANTIC CITY ELEC 8.53 %, 1998 20,320 2,031 2,059
BALTIMORE G&E $100 8.625%, 2000 97,500 9,750 10,539
BALTIMORE G&E $100 8.25 %, 1999 39,956 3,995 4,221
BELL ATLANTIC NZ$100 5.80 %, 2004 100,000 10,000 10,000
BOSTON EDISON $100 8.00 %, 2001 90,000 9,000 9,517
CBI INDUSTRIES 100 7.48 %, 2000 50,000 5,000 5,075
CENTRAL ILL LT $100 5.85 %, 2008 50,000 5,000 4,994
CINCINNATI G&E $100 7.875%, 2004 200,000 20,000 22,000
COMMWLTH ED $100 PVT 8.200%, 2002 73,580 7,171 7,529 (d)
COMMONWEALTH EDISON 8.85S%, 2003 78,000 7,968 7,956 (b)(d)
CONN LT & PWR $50 5.30 %, 2003 115,300 5,668 5,390
CON EDISON $100 SR J 6.125%, 2002 150,000 15,048 15,300
CON EDISON 7.2 SER I 7.20 %, 2007 32,550 3,289 3,446
DUKE POWER $100 SR V 6.40 %, 2002 30,000 3,000 3,195
DUKE POWER $100 SR U 6.30 %, 2001 30,000 3,000 3,195
DUKE POWER $100 SR T 6.20 %, 2000 30,000 3,000 3,195
DUKE POWER 1992D $25 6.20 %, 2001 200,000 5,006 5,150
DUKE POWER 1992C $25 6.10 %, 2000 250,000 6,276 6,437
EASTERN EDISON $100 6.625%, 2008 210,000 20,923 21,630
FLORIDA POWER $100 7.08 %, 2010 22,099 2,191 2,254
GREEN MTN PWR CL-D/3 8.625%, 2000 70,000 7,000 7,269 (b)(d)
</TABLE>
<PAGE>
PAGE 55
<TABLE>
<CAPTION>
Bal. Held
at 12-31-95 Cost Value at
Number of (Notes 12-31-95
Name of Issuer and Titles of Issue Shares a and c) (Note a)
---------------------------------- ----------- ---------- ----------
<S> <C> <C> <C>
HAWAII ELEC $100 8.500%, 2005 20,000 1,993 2,120 (b)(d)
MAUI ELEC $100 8.50 %, 2005 25,000 2,492 2,650 (b)(d)
HOUSTON LT PWR $100 9.375%, 1999 93,000 9,326 9,599 (b)(d)
INDIANA MICH POWER 6.30 %, 2009 52,250 5,222 5,303
IND MICH POWER $100 6.25 %, 2009 20,000 2,008 2,023 (f)
INDIANA MICHIGAN PWR 5.90 %, 2009 32,500 3,102 3,116
JERSEY CENTRAL P&L 8.650%, 2005 75,000 7,500 8,288
JERSEY CENTRAL P & L 8.480%, 2000 85,000 8,524 9,078
LONG ISL LGT SER AA 7.95 %, 2000 273,600 6,913 6,669
LOUISIANA P&L $100 7.00 %, 1999 80,000 8,008 8,260
LOUISIANA P & L $100 8.000%, 2001 70,000 7,000 7,630
MAINE YANKEE $100 7.48 %, 2001 40,730 3,951 4,185
MIDAMERICAN ENERGY 7.80 %, 2006 73,300 7,599 7,825
MN P & L 144A $100 7.125%, 2002 50,000 4,970 4,992 (b)(d)
MN P&L 144A 6.70 6.70 %, 2002 100,000 10,000 10,200 (b)(d)
MISS P&L $100 9.76 %, 1997 26,347 2,633 2,749
NIPSCO IND $100 8.750%, 1996 250,000 25,012 25,012 (b)(d)
NJ NATL GAS 100 144A 7.72P%, 2001 200,000 20,000 22,150 (d)
NIAGARA MOHAWK $25 9.75 %, 1996 13,072 328 327 (b)(d)
NO IND PUB SERV $100 8.85 %, 2003 42,000 4,230 4,293 (b)(d)
NORTHWEST NAT GA 100 6.95 %, 2002 150,000 15,000 16,313
OHIO POWER CO $100 5.90 %, 2009 36,000 3,523 3,587
OHI PWR CO $100 6.02 %, 2008 10,000 989 1,006
OHIO PWR CO $100 6.35 %, 2008 5,000 509 513
ORANGE ROCKLAND$100 8.125%, 1997 13,098 1,315 1,323 (b)(d)
OTTER TAIL PWR $100 6.35 %, 2007 180,000 18,000 18,900
PECO ENERGY 6.12 %, 2003 90,300 8,932 9,278
PACIFIC GAS & ELEC 6.30 %, 2009 24,000 612 583 (f)
PACIFIC GAS & ELEC 6.57P%, 2007 567,500 14,151 14,471
PACIFICORP $100 PAR 7.70 %, 2001 150,000 15,000 16,800
PENN P&L PFD $100 6.15 %, 2003 25,000 2,349 2,550
PENN P&L $100 PAR 6.125%, 2008 60,000 5,952 6,111
PENN PWR & LT $100 6.33 %, 2008 93,000 9,111 9,600
POTOMAC ELEC PWR $50 6.80 %, 2007 160,800 7,936 8,574
POTOMAC ELECTRIC 7.78P%, 2006 160,000 8,008 9,300
PUB SERV COLO $100 7.50 %, 2009 173,368 16,708 17,684 (b)(d)
PUGET SOUND P&L $100 8.00 %, 2004 4,932 493 506
ROCHESTER G&E $100 6.60 %, 2009 20,000 1,899 2,058
ROCHESTER G & E $100 7.65P%, 1999 20,000 2,000 2,160
ROCHESTER G & E $100 7.55P%, 1998 67,000 6,707 7,178
ROCHESTER G & E $100 7.45P%, 1997 52,500 5,250 5,571
SAN DIEGO G&E $25 1.762%, 2008 59,500 1,600 1,607 (f)
SIERRA PAC PWR SER G 8.240%, 1998 81,910 4,095 4,227
SO CA EDISON $100 6.05 %, 2008 20,000 2,003 1,974 (f)
SO CA EDISON $100 6.45 %, 2002 197,250 19,903 20,218
SO INDIANA G&E 100 6.50 %, 2002 75,000 7,500 7,296 (b)(d)
TENNECO SRS B $100 7.400%, 1998 56,904 5,596 5,719
TEXAS UTILITY $100 9.64 %, 1998 72,212 7,253 7,474 (b)(d)
TEXAS UTILITIES 6.375%, 2008 54,000 5,439 5,427
TEXAS UTIL $100 PAR 6.98 %, 2008 50,000 5,000 5,294
UNITED TELECOM $100 7.75 %, 2008 37,472 3,592 3,818 (b)(d)
VIRGINIA ELEC & PWR 5.58 %, 2000 10,000 1,019 1,021 (f)
VIRGINIA ELEC & PWR 6.35P%, 2000 178,700 17,850 18,562
WASHINGTON WATER 8.625%, 2000 80,000 8,012 8,420
</TABLE>
<PAGE>
PAGE 56
<TABLE>
<CAPTION>
Bal. Held
at 12-31-95 Cost Value at
Number of (Notes 12-31-95
Name of Issuer and Titles of Issue Shares a and c) (Note a)
---------------------------------- ----------- ---------- ----------
<S> <C> <C> <C>
WASHINGTON WTR POWER 6.95P%, 2007 57,500 5,767 5,980
WESTERN RESOURCES 7.580%, 2007 23,000 2,408 2,426
----------- ---------- ----------
Total Public Utility 7,966,175 592,182 620,422
----------- ---------- ----------
Finance
HOUSEHLD FIN $100 92A 7.25 %, 1997 90,500 9,244 9,423
Industrial
BOWATER $50 VAR RATE VAR P%, 1998 251,800 12,202 12,338 (f)
WHIRLPOOL FIN $100 B 6.55 %, 2008 180,000 18,151 18,765 (d)
XEROX CORP $50 PAR 7.375%, 1998 72,702 3,602 3,853
----------- ---------- ----------
Total Industrial 504,502 33,955 34,956
----------- ---------- ----------
Total Preferred Stock 8,561,177 635,381 664,801
----------- ---------- ----------
Other
Industrial
MRS FIELDS 20,176,717 605 605 (f)
WAXMAN IND WARRANTS 150,000 150 7 (f)
----------- ---------- ----------
Total Industrial 20,326,717 755 612
----------- ---------- ----------
Total Other 20,326,717 755 612
----------- ---------- ----------
Total Investments in Securities
of Unaffiliated Issuers 3,366,241 3,456,922
Total Reserve for Possible Losses
on Corporate Issues 110
---------- ----------
$3,366,131 $3,456,922
========== ==========
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 unaffiliated issuers for
federal income tax purposes was $3,362,597.
(d) Securities acquired in private negotiation which may require registration under
federal securities laws if they were to be publicly sold. Also see note 3B to
financial statements.
(e) Non-income producing securities.
(f) Securities classified as available for sale and carried at fair value in the
balance sheet. Also see notes 1 and 3A to financial statements.
</TABLE>
<PAGE>
PAGE 57
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE II
Investments in and Advances to Affiliates and Income Thereon
December 31, 1995, 1994 and 1993
($ in thousands)
-----------------------------------------------------------------------------------
Balance December 31, 1995 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 $2,998 $ 5,193 $ 0
===== ----- ------- ----------
Other Controlled Company:
Real Estate Development Company:
Mankato Ventures, First Mortgage
Loan........................... $ 462 462 462 55
===== ----- ------- ----------
Other Affiliates (as defined
in Sec. 2(a)(3) of the
Investment Company Act
of 1940)......................... 0 0 0 0
===== ----- ------- ----------
Total affiliates............... $3,460 $ 5,655 $ 55
===== ======= ==========
</TABLE>
<PAGE>
PAGE 58
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE II
Investments in and Advances to Affiliates and Income Thereon
December 31, 1995, 1994 and 1993
($ in thousands)
-----------------------------------------------------------------------------------
Balance December 31, 1994 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 $2,998 $ 4,819 $ 0
===== ----- ------- ----------
Other Controlled Company:
Real Estate Development Company:
Mankato Ventures, First Mortgage
Loan........................... $ 580 580 580 68
===== ----- ------- ----------
Other Affiliates (as defined
in Sec. 2(a)(3) of the
Investment Company Act
of 1940)......................... 0 0 0 0
===== ----- ------- ----------
Total affiliates............... $3,578 $ 5,399 $ 68
===== ======= ==========
</TABLE>
<PAGE>
PAGE 59
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE II
Investments in and Advances to Affiliates and Income Thereon
December 31, 1995, 1994 and 1993
($ 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 60
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE II
Investments in and Advances to Affiliates and Income Thereon
December 31, 1995, 1994 and 1993
($ in thousands)
------------------------------------------------------------
NOTES:
(a) The aggregate cost for federal income tax purposes at December 31,
1995, 1994 and 1993 was $5,526, $5,309 and $4,677 respectively,
subject to possible adjustment in certain circumstances under
consolidated income tax return regulations.
(b) Investments in stocks of wholly owned subsidiaries are carried
at cost adjusted for equity in undistributed net income since
organization or acquisition of the subsidiaries.
(c) Changes in investment in affiliate during the three years ended
December 31, 1995 are summarized below:
Cost at Additions (Deductions) Cost at
Name of Issuer and Dec. 31, Dec. 31,
Title of Issue 1992 1993 1994 1995 1995
------------------- -------- ---- ---- ---- --------
<S> <C> <C> <C> <C> <C>
Mankato Ventures,
First Mortgage
Loan 779 (95) (104) (118) 462
(d) There were no dividends or interest earned which were not credited
to income.
</TABLE>
<PAGE>
PAGE 61
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE III
Mortgage Loans on Real Estate and Interest Earned on Mortgages
Year Ended December 31, 1995
($ in thousands)
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
--------------- ------ ----- ---------- ------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
First mortgages:
Insured by Federal Housing Administration - liens on:
Residential - under $100 0 0 0 0 0
Apartment and business - under $100 0 0 0 0 0
----- ------ ------ --------- -----------
Total 0 0 0 0 0
----- ------ ------ --------- -----------
Partially guaranteed under Servicemen's
Readjustment Act of 1944, as amended - liens on:
Residential - under $100 0 0 0 0 0
Apartment and business - under $100 0 0 0 0 0
----- ------ ------ --------- -----------
Total 0 0 0 0 0
----- ------ ------ --------- -----------
Other - liens on:
Residential 0 0 0 0 0
Apartment and business: ----- ------ ------ --------- -----------
Under $100 0 0 0 0 0
$100 to $150 2 218 579 0 0
$150 to $200 0 0 0 0 0
$200 to $250 1 238 238 0 0
$250 to $300 2 552 552 0 0
$300 to $350 1 333 333 0 0
$350 to $400 3 1,157 1,157 0 0
$400 to $450 2 867 867 0 0
$450 to $500 0 0 0 0 0
Over $500
Loan No. Mortgagor Property Location
-------- --------- -----------------
20-00001 NSP, LTD Bloomington, MN 1 676 676 0 0
21-46978 Kraus Anderson Burnsville, MN 1 283 533 0 0
21-47004 Retired Teachers Housing Authority Yukon, OK 1 677 677 0 0
21-47084 Ryan Construction Co. Eden Prairie, MN 1 1,821 1,821 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
Description (a) amount of to of
--------------- Number Prior mortgages delinquent mortgages
Over $500 of liens (c),(g),(h) interest being
Loan No. Mortgagor Property Location loans (b) and (i) Total (d) forclosed
-------- --------- ----------------- ------ ----- ---------- ------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
21-47106 1225 No. County Road 18 LTD Plymouth, MN 1 1,625 1,625 0 0
21-47110 Lloyd Engelsma Brooklyn Park, MN 1 2,582 2,582 0 0
21-47116 McCaughey Dev. Association Madison, WI 1 1,230 1,230 0 0
21-47128 Century Income Properties Fund Brookfield,WI 1 1,973 1,973 0 0
21-47129 Retired Teachers Housing Yukon, OK 1 502 502 0 0
21-47139 Treasurer's Island Inc. Eagan, MN 1 1,564 1,564 0 0
21-47140 Harbour Run LTD MentorOnTheLake,OH 1 4,173 4,173 0 0
21-47141 John E. Smith Lafayette, IN 1 4,146 4,146 0 0
21-47142 34th Street Properties Partnership Gainsville, FL 1 10,221 10,221 0 0
21-47144 Turnquist, Inc. Brooklyn Park, MN 1 4,468 4,468 0 0
21-47147 Columbus Real Estate Co. Hilliard, OH 1 7,838 7,838 0 0
21-47148 Turner Development Corporation Orlando, FL 1 4,830 4,830 0 0
21-47150 Bircain Apartment Company LP Gladstone, MO 1 2,473 2,473 0 0
21-47151 Pinecrest I Spokeane, WA 1 1,089 1,089 0 0
21-47152 Richard D. Fownes Trustee Boston, MA 1 3,749 3,749 0 0
21-47153 Fox Run of Omaha, Inc. Omaha, NE 1 2,573 2,573 0 0
21-47154 Kenneth Grandberg Trustee Randolph, MA 1 3,157 3,157 0 0
21-47155 VLM Partnership Overland Park, KS 1 2,852 2,852 0 0
21-47156 LT Limited Partnership Lafayette, IN 1 4,292 4,292 0 0
21-47157 John A. Belanich Tampa, FL 1 3,643 3,643 0 0
21-47158 Grande Associates South River, NJ 1 4,231 4,231 0 0
21-47159 Grande Associates Marlton, NJ 1 3,818 3,818 0 0
21-47160 James Esshaki DBA Taylor MI 1 6,132 6,132 0 0
21-47162 York Creek #3 LTD DBA Taylor MI 1 3,994 3,994 0 0
21-47163 Bayrock Investment Company Sarasota, FL 1 6,557 6,557 0 0
21-47164 K & M Hamilton Development Co. Halmilton, OH 1 5,804 5,804 0 0
21-47165 Bowling Freen Partnership Sussex, WI 1 2,663 2,663 0 0
21-47166 Colonial Estates Associates Warrington, PA 1 6,270 6,270 0 0
21-47167 Wilder Corp of Delaware Ruskin, FL 1 5,779 5,779 0 0
</TABLE>
<PAGE>
PAGE 63
<TABLE>
<CAPTION>
Part 1 - Mortgage loans on real estate at end of period
------------- ----------------------------------------------
Amount of principal
unpaid at end of period
------------------------
Carrying Subject Amount
Description (a) amount of to of
--------------- Number Prior mortgages delinquent mortgages
Over $500 of liens (c),(g),(h) interest being
Loan No. Mortgagor Property Location loans (b) and (i) Total (d) forclosed
-------- --------- ----------------- ------ ----- ---------- ------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
21-47168 Wilder Corp of Delaware Riverview, FL 1 3,190 3,190 0 0
21-47169 Franklin & Bonnie Kottshade Rochester, MN 1 4,353 4,353 0 0
21-47170 Franklin & Bonnie Kottshade Rochester, MN 1 1,158 1,158 0 0
21-47172 Dial Reit Inc. Fremont, NE 1 2,947 2,947 0 0
21-47173 Cinram Associates Fairfield, NJ 1 3,887 3,887 0 0
21-47174 Grande Associates Deptford Twnsp, NJ 1 8,260 8,260 0 0
21-47177 Griffin Real Estate Fund II LP Urbandale, IA 1 2,869 2,869 0 0
21-47178 Griffin Real Estate Fund II LP Urbandale, IA 1 2,485 2,485 0 0
21-47179 Morrestown Office Center Morrestown, NJ 1 2,728 2,728 0 0
21-47181 Westlake #1 Limited Partnership Charlotte, NC 1 2,391 2,391 0 0
21-47183 Cowne Point Ltd Partnership Holland, MI 1 3,914 3,914 0 0
21-47184 Mcnab Commerce Center Association Pompano Beach, FL 1 2,210 2,210 0 0
21-47186 Mack Edison Company Edison, NJ 1 6,907 6,907 0 0
21-47187 Industrial Development Association Mebane, NC 1 2,662 2,662 0 0
21-47190 Dial Reit Inc. Davenport, IA 1 4,170 4,170 0 0
21-47191 SSC Associates Ltd Ptnshp St. Claire Shores, MI 1 6,286 6,286 0 0
21-47192 Tree Trail Village Association Norcross, GA 1 6,681 6,681 0 0
21-47193 ECPG (Peoria) Association Glendale, AZ 1 6,565 6,565 0 0
21-47194 Briar Development Company Tacoma, WA 1 4,302 4,302 0 0
21-47195 Tipotex Inc. Pharr, TX 1 1,905 1,905 0 0
21-47196 Wilder Corporation Pharr, TX 1 4,262 4,262 0 0
21-47197 Wilder Corporation Alamo, TX 1 976 976 0 0
21-47198 Investors Real Estate Trust Grand Forks, ND 1 4,209 4,209 0 0
21-47199 Warren and Kelso Company Cheltenham Twsp, PA 1 2,901 2,901 0 0
21-47201 Oakland Park Festival Ctr Oakland Park, FL 1 4,405 4,405 0 0
21-47202 Lakewood West Ltd Partnership Lakewood, CO 1 4,290 4,290 0 0
21-47203 Desert Shadow Tucson, AZ 1 8,942 8,942 0 0
0-2013291 Ryan Equities Pantago, TX 1 790 790 0 0
0-3027654 DFB Associates Costa Mesa, CA 1 1,137 1,137 0 0
0-3031967 Special Partnership St. Anthony, MN 1 562 562 0 0
----- ------- ------- --------- ----------
74 233,394 234,005 0 0
----- ------- ------- --------- -----------
Total Other 74 233,394 234,005 0 0
----- ------- ------- --------- -----------
Total First Mortgage Loans on Real Estate 74 233,394 234,005 0 0
===== ======= ======= ========= ===========
</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)
--------------- ------------ --------------
<S> <C> <C>
First mortgages:
Insured by Federal Housing Administration - liens on:
Residential - under $100 0.000%
Apartment and business - under $100 0.000%
------------
Total 0.000%
------------
Partially guaranteed under Servicemen's
Readjustment Act of 1944, as amended - liens on:
Residential - under $100 0.000%
Apartment and business - under $100 0.000%
------------
Total 0.000%
------------
Other - liens on:
Residential 0
Apartment and business: ------------
Under $100 0.000%
$100 to $150 9.477%
$150 to $200 0.000%
$200 to $250 8.750%
$250 to $300 10.191%
$300 to $350 9.900%
$350 to $400 8.625%
$400 to $450 9.372%
$450 to $500 0.000%
Over $500
Loan No. Mortgagor Property Location
-------- --------- -----------------
20-00001 NSP, LTD Bloomington, MN 8.750%
21-46978 Kraus Anderson Burnsville, MN 9.250%
21-47004 Retired Teachers Housing Authority Yukon, OK 8.875%
21-47084 Ryan Construction Co. Eden Prairie, MN 8.500%
</TABLE>
<PAGE>
PAGE 65
<TABLE>
<CAPTION>
Part 2 -
Interest earned on mortgages
----------------------------
Average
gross rate
Interest of interest
due and on mortgages
Description (a) accrued held at end
---------------
Over $500 at end of of period
Loan No. Mortgagor Property Location period (e) (f)
-------- --------- ----------------- ------------ --------------
<S> <C> <C>
21-47106 1225 No. County Road 18 LTD Plymouth, MN 10.250%
21-47110 Lloyd Engelsma Brooklyn Park, MN 8.750%
21-47116 McCaughey Dev. Association Madison, WI 8.500%
21-47128 Century Income Properties Fund Brookfield,WI 10.000%
21-47129 Retired Teachers Housing Yukon, OK 12.000%
21-47139 Treasurer's Island Inc. Eagan, MN 8.625%
21-47140 Harbour Run LTD MentorOnTheLake,OH 9.000%
21-47141 John E. Smith Lafayette, IN 10.000%
21-47142 34th Street Properties Partnership Gainsville, FL 8.125%
21-47144 Turnquist, Inc. Brooklyn Park, MN 8.875%
21-47147 Columbus Real Estate Co. Hilliard, OH 8.375%
21-47148 Turner Development Corporation Orlando, 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 8.750%
21-47158 Grande Associates South River, NJ 7.500%
21-47159 Grande Associates Marlton, NJ 7.500%
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 8.625%
21-47166 Colonial Estates Associates Warrington, PA 8.750%
21-47167 Wilder Corp of Delaware Ruskin, FL 9.625%
</TABLE>
<PAGE>
PAGE 66
<TABLE>
<CAPTION>
Part 2 -
Interest earned on mortgages
----------------------------
Average
gross rate
Interest of interest
Description (a) due and on mortgages
--------------- accrued held at end
Over $500 at end of of period
Loan No. Mortgagor Property Location period (e) (f)
-------- --------- ----------------- ------------ --------------
<S> <C> <C>
21-47168 Wilder Corp of Delaware Riverview, FL 9.625%
21-47169 Franklin & Bonnie Kottshade Rochester, MN 9.000%
21-47170 Franklin & Bonnie Kottshade Rochester, MN 9.750%
21-47172 Dial Reit Inc. Fremont, NE 9.250%
21-47173 Cinram Associates Fairfield, NJ 9.125%
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 8.625%
21-47181 Westlake #1 Limited Partnership Knosha, WI 8.250%
21-47183 Crowne 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 8.125%
21-47190 Dial Reit Inc. Davenport, IA 8.000%
21-47191 SSC Associates Ltd Ptnshp St. Claire 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 9.750%
21-47199 Warren and Kelso Company Cheltenham Twsp, PA 8.125%
21-47201 Oakland Park Festival Ctr Oakland Park, FL 7.750%
21-47202 Lakewood West Ltd Partnership Lakewood, CO 7.750%
21-47203 Desert Shadow Tucson, AZ 8.750%
0-2013291 Ryan Equities Pantago, TX 11.125%
0-3027654 DFB Associates Costa Mesa, CA 9.500%
0-3031967 Special Partnership St. Anthony, MN 9.250%
------------
8.901%
------------
Total Other 8.901%
------------
Total First Mortgage Loans on Real Estate 8.901%
============
</TABLE>
<PAGE>
PAGE 67
<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 15,507 15,507
California 3 1,898 1,898
Colorado 1 4,290 4,290
Florida 8 40,835 40,835
Georgia 1 6,681 6,681
Indiana 2 8,437 8,437
Iowa 3 9,525 9,525
Kansas 1 2,852 2,852
Massachusetts 2 6,906 6,906
Michigan 4 20,327 20,327
Minnesota 12 19,761 20,011
Missouri 1 2,473 2,473
Nebraska 2 5,520 5,520
New Jersey 7 30,220 30,220
North Carolina 2 5,053 5,053
North Dakota 1 4,210 4,210
Ohio 3 17,816 17,816
Oklahoma 3 1,417 1,417
Pennsylvania 2 9,171 9,171
South Dakota 1 387 387
Texas 7 8,414 8,775
Virginia 1 438 438
Washington 2 5,390 5,390
Wisconsin 3 5,866 5,866
------ ---------- ---------- --------- ---------
Total 74 233,394 234,005 0 0
====== ========== ========== ========= =========
</TABLE>
<PAGE>
PAGE 68
NOTES:
(a) The classification "residential" includes single dwellings only.
Residential multiple dwellings are included in "apartment and
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, 1995 are shown by type and class of loan.
The average gross interest rates on mortgage loans held at
December 31, 1995, 1994 and 1993 are summarized as follows:
1995 1994 1993
First mortgages: ----- ----- -----
Insured by Federal Housing
Administration 0.000% 7.186% 7.076%
Partially guaranteed under
Servicemen's Readjustment
Act of 1944, as amended 0.000 8.000 8.000
Other 8.901 8.884 9.055
----- ----- -----
Combined average 8.901% 8.884% 9.055%
===== ===== =====
<PAGE>
PAGE 69
(g) Following is a reconciliation of the carrying amount of mortgage
loans for the years ended December 31, 1995, 1994 and 1993.
1995 1994 1993
---- ---- ----
[S] [C] [C] [C]
Balance at beginning
of period $ 253,968 $ 281,865 $ 233,796
Additions during period:
New loans acquired:
Nonaffiliated
companies 9,000 0 59,183
Allowance for loss
transferred to
real estate 0 350 530
Allowance for loss
reversed 0 0 220
Amortization of
discount/premium 0 51 90
---------- ---------- ----------
Total additions 9,000 401 60,023
---------- ---------- ----------
262,968 282,266 293,819
---------- ---------- ----------
Deductions during period:
Collections of
principal 29,533 28,298 5,908
Cost of mortgages sold 41 0 6,046
---------- ---------- ----------
Total deductions 29,574 28,298 11,954
---------- ---------- ----------
Balance at end of
period $ 233,394 $ 253,968 $ 281,865
========== ========== ==========
(h) The aggregate cost of mortgage loans for federal income tax purposes
at December 31, 1995 was $234,005.
(i) At December 31, 1995, an allowance for loss of $611 is recorded which
represents the amount of impairment on mortgage loans.
<PAGE>
PAGE 70
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE V
Qualified Assets on Deposit
December 31, 1995
($ 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 $ 49 $ 0 $ 0 $ 0 $ 49
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 115 0 0 0 115
---------- ---------- -------- --------- ----------
Total deposits with states
or their depositaries to
meet requirements of
statues and agreements 414 0 0 0 414
Central depositary - American
Express Trust Company (e) 2,798,524 636,136 229,554 14,081 3,678,295
---------- ---------- -------- --------- ----------
Total $2,798,938 $ 636,136 $229,554 $ 14,081 $3,678,709
========== ========== ======== ========= ==========
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 $3,362 and amortized cost of
purchased call options of $10,719.
(e) Formerly IDS Trust Company.
</TABLE>
<PAGE>
PAGE 71
<TABLE>
<CAPTION> Schedule VI
IDS CERTIFICATE COMPANY
Certificate Reserves
Part 1 - Summary of Changes
Year ended December 31, 1995 Balance at beginning of period
($ 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>
Installment certificates:
Reserves to mature:
Series 15, includes extended maturities 2.40 Inst/2.50 Ext. 1 $ 5 1
" 20, " " " 2.52 Inst/2.50 Ext. 105 1,275 1,195
" 15A, " " " 2.66 Inst/3.04 Ext. 93 1,374 1,248
" 22A, " " " 3.09 2,641 44,461 35,797
" I-76, " " " 3.35 1,200 28,481 11,036
" Reserve Plus Flexible Payment (note a) 568 5,546 2,926
" IC-Q-Installment (note a) 1,185 12,831 5,045
" IC-Q-Ins (note a) 32,601 443,888 164,058
" IC-Q-Ins Emp (note a) 193 2,812 942
" IC-1 (note a) 46,436 865,176 98,886
" IC-1-Emp (note a) 372 7,105 734
" RP-Q-Installment (note a) 633 9,374 4,837
" RP-Q-Flexible Payment (note a) 212 3,100 958
" RP-Q-Ins (note a) 880 19,554 6,122
" RP-Q-Ins Emp (note a) 7 435 27
" RP-1 (note a) 431 14,994 1,774
" RP-1-Emp (note a) 2 636 6
---------- ---------- ----------
Total 87,560 1,461,047 335,592
---------- ---------- ----------
Payments made in advance of certificate
year requirements and accrued interest
thereon:
Series 15, includes extended maturities 2 Not Not 0
" 20, " " " 2 Readily Applicable 56
" 15A, " " " 3 Available 29
" 22A, " " " 3 1,163
" I-76, " " " 3.5 386
----------
Total 1,634
----------
</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>
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. 22 6 19
" 15A, " " " 2.66 Inst/3.04 Ext. 29 21 14
" 22A, " " " 3.09 1,040 659 2,655
" I-76, " " " 3.35 353 460 55
" Reserve Plus Flexible Payment (note a) 0 373 85
" IC-Q-Installment (note a) 0 378 90
" IC-Q-Ins (note a) 0 23,738 3,986
" IC-Q-Ins Emp (note a) 0 135 25
" IC-1 (note a) 0 84,788 4,003
" IC-1-Emp (note a) 0 646 36
" RP-Q-Installment (note a) 0 69 111
" RP-Q-Flexible Payment (note a) 0 22 29
" RP-Q-Ins (note a) 0 524 134
" RP-Q-Ins Emp (note a) 0 5 1
" RP-1 (note a) 0 1,250 67
" RP-1-Emp (note a) 0 8 0
---------- ----------- ----------
Total 1,444 113,082 11,310
---------- ----------- ----------
Payments made in advance of certificate
year requirements and accrued interest
thereon:
Series 15, includes extended maturities 2 0 0 0
" 20, " " " 2 2 5 1
" 15A, " " " 3 1 7 1
" 22A, " " " 3 51 336 115
" I-76, " " " 3.5 19 77 4
---------- ----------- ----------
Total 73 425 121
---------- ----------- ----------
</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>
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. 128 122 626
" 15A, " " " 2.66 Inst/3.04 Ext. 62 77 403
" 22A, " " " 3.09 2,235 2,027 6,624
" I-76, " " " 3.35 92 1,791 283
" Reserve Plus Flexible Payment (note a) 2,950 955 1
" IC-Q-Installment (note a) 0 1,350 15
" IC-Q-Ins (note a) 0 79,498 10
" IC-Q-Ins Emp (note a) 0 551 0
" IC-1 (note a) 0 24,656 0
" IC-1-Emp (note a) 0 312 0
" RP-Q-Installment (note a) 1,213 1,023 86
" RP-Q-Flexible Payment (note a) 351 249 1
" RP-Q-Ins (note a) 0 3,071 0
" RP-Q-Ins Emp (note a) 0 10 0
" RP-1 (note a) 0 460 0
" RP-1-Emp (note a) 0 0 0
---------- ---------- ----------
Total 7,031 116,152 8,049
---------- ---------- ----------
Payments made in advance of certificate
year requirements and accrued interest
thereon:
Series 15, includes extended maturities 2 0 0 0
" 20, " " " 2 5 7 34
" 15A, " " " 3 1 0 13
" 22A, " " " 3 97 72 545
" I-76, " " " 3.5 0 52 33
---------- ---------- ----------
Total 103 131 625
---------- ---------- ----------
</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>
Installment certificates:
Reserves to mature:
Series 15, includes extended maturities 2.40 Inst/2.50 Ext. 1 5 1
" 20, " " " 2.52 Inst/2.50 Ext. 33 407 366
" 15A, " " " 2.66 Inst/3.04 Ext. 56 831 770
" 22A, " " " 3.09 2,051 36,322 29,265
" I-76, " " " 3.35 1,001 23,309 9,830
" Reserve Plus Flexible Payment (note a) 466 4,400 2,336
" IC-Q-Installment (note a) 302 3,215 1,198
" IC-Q-Ins (note a) 21,505 275,345 112,274
" IC-Q-Ins Emp (note a) 117 1,765 551
" IC-1 (note a) 57,510 1,053,083 163,021
" IC-1-Emp (note a) 433 7,229 1,104
" RP-Q-Installment (note a) 318 4,379 2,695
" RP-Q-Flexible Payment (note a) 105 1,704 408
" RP-Q-Ins (note a) 595 11,401 3,709
" RP-Q-Ins Emp (note a) 5 176 23
" RP-1 (note a) 498 14,852 2,631
" RP-1-Emp (note a) 5 1,254 14
---------- ----------- ----------
Total 85,001 1,439,677 330,196
---------- ----------- ----------
Payments made in advance of certificate
year requirements and accrued interest
thereon:
Series 15, includes extended maturities 2 Not Not 0
" 20, " " " 2 Readily Applicable 18
" 15A, " " " 3 Available 24
" 22A, " " " 3 951
" I-76, " " " 3.5 401
----------
Total 1,394
----------
</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>
Additional credits and accrued interest
thereon:
Series 15, includes extended maturities 2.5 0
" 20, " " " 2.5 Not Not 284
" 15A, " " " 3 Readily Applicable 226
" 22A, " " " 3 Available 7,475
" I-76, " " " 3.5 2,628
" 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) 118
" 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) 2
" RP-1-Emp (note a) 0
----------
Total 10,733
----------
Reserve for accrued extra contribution 3rd year 8,382
Reserve for accrued extra contribution 6th year 644
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 59
Reserve for death and disability refund options 0
Reserve for reconversion of paid-up certificates 53
----------
Total installment certificates 357,100
----------
</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>
Additional credits and accrued interest
thereon:
" 15, includes extended maturities 2.5 0 0
" 20, " " " 2.5 4 Not 6
" 15A, " " " 3 4 Applicable 3
" 22A, " " " 3 190 557
" I-76, " " " 3.5 82 24
" Reserve Plus Flexible Payment (note a) 86 0
" IC-Q-Installment (note a) 90 0
" IC-Q-Ins (note a) 3,990 0
" IC-Q-Ins Emp (note a) 25 0
" IC-1 (note a) 4,100 0
" IC-1-Emp (note a) 37 0
" RP-Q-Installment (note a) 111 0
" RP-Q-Flexible Payment (note a) 29 0
" RP-Q-Ins (note a) 134 0
" RP-Q-Ins Emp (note a) 1 0
" RP-1 (note a) 68 0
" RP-1-Emp (note a) 0 0
---------- ----------
Total 8,951 590
---------- ----------
Reserve for accrued extra contribution 3rd year 5,575 (1,635) 0
Reserve for accrued extra contribution 6th year 389 (470) 0
Accrued interest on reserves in default I-76 3.5 6 0 0
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 325 0 0
Reserve for death and disability refund options 0 0 0
Reserve for reconversion of paid-up certificates 1 0 0
---------- ----------- ----------
Total installment certificates 16,764 111,402 12,021
---------- ----------- ----------
</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>
Additional credits and accrued interest
thereon:
Series 15, includes extended maturities 2.5 0 0 0
" 20, " " " 2.5 32 31 153
" 15A, " " " 3 12 15 77
" 22A, " " " 3 472 416 1,394
" I-76, " " " 3.5 0 430 57
" Reserve Plus Flexible Payment (note a) 0 0 86
" IC-Q-Installment (note a) 0 0 90
" IC-Q-Ins (note a) 0 0 3,990
" IC-Q-Ins Emp (note a) 0 0 25
" IC-1 (note a) 0 0 4,004
" IC-1-Emp (note a) 0 0 35
" RP-Q-Installment (note a) 0 0 111
" RP-Q-Flexible Payment (note a) 0 0 29
" RP-Q-Ins (note a) 0 0 134
" RP-Q-Ins Emp (note a) 0 0 1
" RP-1 (note a) 0 0 67
" RP-1-Emp (note a) 0 0 0
---------- ---------- ----------
Total 516 892 10,253
---------- ---------- ----------
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 1 6
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 0 108
Reserve for death and disability refund options 0 0 0
Reserve for reconversion of paid-up certificates 0 0 1
---------- ---------- ----------
Total installment certificates 7,650 117,176 19,042
---------- ---------- ----------
</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>
Additional credits and accrued interest
thereon:
Series 15, includes extended maturities 2.5 0
" 20, " " " 2.5 Not Not 78
" 15A, " " " 3 Readily Applicable 129
" 22A, " " " 3 Available 5,940
" I-76, " " " 3.5 2,247
" 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) 214
" IC-1-Emp (note a) 2
" 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) 3
" RP-1 (note a) 0
-----------
Total 8,613
-----------
Reserve for accrued extra contribution 3rd year 12,322
Reserve for accrued extra contribution 6th year 563
Accrued interest on reserves in default I-76 3.5 2
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 276
Reserve for death and disability refund options 0
Reserve for reconversion of paid-up certificates 53
-----------
Total installment certificates 353,419
-----------
</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>
Fully paid certificates:
Single-payment certificates:
SP 74 3.5 214 2,049 2,041
SP 75 3.5 2,237 22,384 21,880
SP 76 3.5 482 3,982 3,737
SP 77 3.5 547 3,832 3,487
SP 78 3.5 627 4,687 4,125
SP 79 3.5 765 5,820 4,961
SP 80 3.5 716 5,870 4,822
SP 81A 3.5 586 3,948 3,128
SP 82A 3.5 563 5,696 4,368
SP 82B 3.5 1,011 9,758 7,400
SP 83A 3.5 187 1,674 1,252
SP 83B 3.5 389 3,600 2,647
IC-2-84 3.5 1,699 17,391 12,364
IC-2-85 3.5 894 10,284 9,153
IC-2-86 3.5 464 5,909 4,729
IC-2-87 3.5 589 8,168 6,138
IC-2-88 3.5 1,132 16,565 11,221
Reserve Plus Single Payment (note a) 1,742 8,476 12,467
Cash Reserve Single Payment (note b) 71 314 260
IC-Flexible Savings (formerly Variable Term) (note d) 71,321 449,253 493,919
IC-Flexible Savings Emp (formerly Variable Term) (note d) 1,536 13,947 15,796
IC-Investors (note d) 448 423,479 433,010
IC-Special Deposits (note d) 13 12,889 13,352
IC-1-84 (note c) 116 672 720
Cash Reserve Variable Payment (note b) 914 4,382 5,515
Cash Reserve Variable Payment-3mo. (note e) 49,507 283,162 293,367
IC-Future Value (note f) 17,531 195,868 195,868
IC-Future Value Emp (note f) 357 3,687 3,687
IC-Stock Market (note g) 42,231 210,664 218,582
---------- ---------- ----------
Total 198,889 1,738,410 1,793,996
---------- ---------- ----------
</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>
Fully paid certificates:
Single-payment certificates:
SP 74 3.5 8 0 0
SP 75 3.5 474 0 0
SP 76 3.5 114 0 0
SP 77 3.5 109 0 0
SP 78 3.5 132 0 0
SP 79 3.5 155 0 0
SP 80 3.5 153 0 0
SP 81A 3.5 97 0 0
SP 82A 3.5 134 0 0
SP 82B 3.5 210 0 0
SP 83A 3.5 38 0 0
SP 83B 3.5 84 0 0
IC-2-84 3.5 351 0 0
IC-2-85 3.5 0 0 338
IC-2-86 3.5 0 0 174
IC-2-87 3.5 0 0 213
IC-2-88 3.5 0 0 400
Reserve Plus Single Payment (note a) 0 1 467
Cash Reserve Single Payment (note b) 0 0 10
IC-Flexible Savings (formerly Variable Term) (note d) 0 761,032 40,134
IC-Flexible Savings Emp (formerly Variable Term) (note d) 0 3,551 766
IC-Investors (note d) 0 371,618 32,275
IC-Special Deposits (note d) 0 56,856 1,775
IC-1-84 (note c) 0 0 23
Cash Reserve Variable Payment (note b) 0 699 203
Cash Reserve Variable Payment-3mo. (note e) 0 222,127 10,354
IC-Future Value (note f) 0 52,049 0
IC-Future Value Emp (note f) 0 842 0
IC-Stock Market (note g) 0 50,666 14,836
---------- ----------- ----------
Total 2,059 1,519,441 101,968
---------- ----------- ----------
</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>
Fully paid certificates:
Single-payment certificates:
SP 74 3.5 567 12 1,462
SP 75 3.5 4,334 1,056 16,598
SP 76 3.5 0 864 0
SP 77 3.5 0 687 0
SP 78 3.5 0 624 0
SP 79 3.5 0 882 0
SP 80 3.5 0 881 0
SP 81A 3.5 0 620 0
SP 82A 3.5 0 1,033 9
SP 82B 3.5 0 2,102 4
SP 83A 3.5 0 350 0
SP 83B 3.5 0 556 0
IC-2-84 3.5 0 3,647 18
IC-2-85 3.5 0 2,611 0
IC-2-86 3.5 0 1,128 0
IC-2-87 3.5 0 1,698 0
IC-2-88 3.5 0 2,534 0
Reserve Plus Single Payment (note a) 0 2,696 34
Cash Reserve Single Payment (note b) 0 42 0
IC-Flexible Savings (formerly Variable Term) (note d) 0 204,990 0
IC-Flexible Savings Emp (formerly Variable Term) (note d) 0 5,043 0
IC-Investors (note d) 0 246,156 0
IC-Special Deposits (note d) 0 13,526 0
IC-1-84 (note c) 0 165 0
Cash Reserve Variable Payment (note b) 0 1,686 0
Cash Reserve Variable Payment-3mo. (note e) 0 301,801 0
IC-Future Value (note f) 6,165 11,888 0
IC-Future Value Emp (note f) 206 23 0
IC-Stock Market (note g) 0 111,459 0
---------- ---------- ----------
Total 11,272 920,760 18,125
---------- ---------- ----------
</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>
Fully paid certificates:
Single-payment certificates:
SP 74 3 1 8 8
SP 75 3.5 44 367 366
SP 76 3.5 366 3,072 2,987
SP 77 3.5 442 3,088 2,909
SP 78 3.5 541 3,985 3,633
SP 79 3.5 613 4,800 4,234
SP 80 3.5 604 4,813 4,094
SP 81A 3.5 480 3,175 2,605
SP 82A 3.5 447 4,361 3,460
SP 82B 3.5 785 7,016 5,504
SP 83A 3.5 141 1,216 940
SP 83B 3.5 317 2,858 2,175
IC-2-84 3.5 1,263 12,298 9,050
IC-2-85 3.5 697 7,443 6,880
IC-2-86 3.5 366 4,571 3,775
IC-2-87 3.5 456 5,957 4,653
IC-2-88 3.5 870 12,875 9,087
Reserve Plus Single Payment 3.5 1,432 6,764 10,205
Cash Reserve Single Payment (note a) 58 271 228
IC-Flexible Savings (formerly Variable Term) (note b) 125,194 1,025,145 1,090,095
IC-Flexible Savings Emp (formerly Variable Term) (note d) 1,540 13,147 15,070
IC-Investors (note d) 546 565,213 590,747
IC-Special Deposits (note d) 62 56,830 58,457
IC-1-84 (note d) 92 564 578
Cash Reserve Variable Payment (note c) 764 3,704 4,731
Cash Reserve Variable Payment-3mo. (note b) 47,447 213,252 224,047
IC-Future Value (note e) 20,452 229,864 229,864
IC-Future Value Emp (note f) 407 4,300 4,300
IC-Stock Market (note g) 43,382 159,932 172,625
---------- ----------- -----------
Total 249,809 2,360,889 2,467,307
---------- ----------- -----------
</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>
Additional credits and accrued interest thereon:
SP 74 3.5 Not Not 2,420
SP 75 3.5 Applicable Applicable 24,993
SP 76 3.5 4,273
SP 77 3.5 3,704
SP 78 3.5 3,946
SP 79 3.5 4,366
SP 80 3.5 3,933
SP 81A 3.5 2,080
SP 82A 3.5 2,813
SP 82B 3.5 4,472
SP 83A 3.5 583
SP 83B 3.5 1,169
IC-2-84 3.5 5,489
IC-2-85 3.5 174
IC-2-86 3.5 79
IC-2-87 3.5 103
IC-2-88 3.5 200
Reserve Plus Single Payment (note a) 0
Cash Reserve Single Payment (note b) 0
IC-Flexible Savings (formerly Variable Term) (note d) 847
IC-Flexible Savings Emp (formerly Variable Term) (note d) 32
IC-Investors (note d) 978
IC-Special Deposits (note d) 14
IC-1-84 (note c) 12
Cash Reserve Variable Payment (note b) 0
Cash Reserve Variable Payment-3mo. (note e) 454
IC-Future Value (note f) 24,007
IC-Future Value Emp (note f) 381
IC-Stock Market (note g) 1,257
-----------
Total 92,779
-----------
</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>
Additional credits and accrued interest thereon:
SP 74 3.5 10 0 6
SP 75 3.5 546 0 8
SP 76 3.5 133 0 29
SP 77 3.5 116 0 15
SP 78 3.5 126 0 14
SP 79 3.5 137 0 10
SP 80 3.5 125 0 15
SP 81A 3.5 64 0 23
SP 82A 3.5 87 0 61
SP 82B 3.5 128 0 43
SP 83A 3.5 17 0 7
SP 83B 3.5 36 0 19
IC-2-84 3.5 157 0 95
IC-2-85 3.5 275 0 0
IC-2-86 3.5 147 0 0
IC-2-87 3.5 181 0 0
IC-2-88 3.5 349 0 0
Reserve Plus Single Payment (note a) 470 0 0
Cash Reserve Single Payment (note b) 10 0 0
IC-Flexible Savings (formerly Variable Term) (note d) 46,140 0 0
IC-Flexible Savings Emp (formerly Variable Term) (note d) 897 0 0
IC-Investors (note d) 35,593 0 0
IC-Special Deposits (note d) 2,001 0 0
IC-1-84 (note c) 28 0 4
Cash Reserve Variable Payment (note b) 217 0 0
Cash Reserve Variable Payment-3mo. (note e) 10,503 0 0
IC-Future Value (note f) 18,585 0 0
IC-Future Value Emp (note f) 388 0 0
IC-Stock Market (note g) 2,076 0 0
----------- ----------- ----------
Total 119,542 0 349
----------- ----------- ----------
</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>
Additional credits and accrued interest thereon:
SP 74 3.5 644 14 1,768
SP 75 3.5 4,990 1,210 18,905
SP 76 3.5 0 941 0
SP 77 3.5 0 734 0
SP 78 3.5 0 603 0
SP 79 3.5 0 778 0
SP 80 3.5 0 736 0
SP 81A 3.5 0 430 0
SP 82A 3.5 0 718 6
SP 82B 3.5 0 1,297 1
SP 83A 3.5 0 168 0
SP 83B 3.5 0 271 0
IC-2-84 3.5 0 1,656 6
IC-2-85 3.5 0 22 298
IC-2-86 3.5 0 12 152
IC-2-87 3.5 0 18 186
IC-2-88 3.5 0 36 353
Reserve Plus Single Payment (note a) 0 0 470
Cash Reserve Single Payment (note b) 0 0 10
IC-Flexible Savings (formerly Variable Term) (note d) 0 4,277 40,151
IC-Flexible Savings Emp (formerly Variable Term) (note d) 0 126 766
IC-Investors (note d) 0 2,954 32,275
IC-Special Deposits (note d) 0 136 1,775
IC-1-84 (note c) 0 3 27
Cash Reserve Variable Payment (note b) 0 13 204
Cash Reserve Variable Payment-3mo. (note e) 0 206 10,362
IC-Future Value (note f) 3,131 1,733 0
IC-Future Value Emp (note f) 91 2 0
IC-Stock Market (note g) 0 103 2,002
---------- ---------- ----------
Total 8,856 19,197 109,717
---------- ---------- ----------
</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>
Additional credits and accrued interest thereon:
SP 74 3.5 Not Not 10
SP 75 3.5 Applicable Applicable 442
SP 76 3.5 3,494
SP 77 3.5 3,101
SP 78 3.5 3,483
SP 79 3.5 3,735
SP 80 3.5 3,337
SP 81A 3.5 1,737
SP 82A 3.5 2,237
SP 82B 3.5 3,345
SP 83A 3.5 439
SP 83B 3.5 953
IC-2-84 3.5 4,079
IC-2-85 3.5 129
IC-2-86 3.5 62
IC-2-87 3.5 80
IC-2-88 3.5 160
Reserve Plus Single Payment (note a) 0
Cash Reserve Single Payment (note b) 0
IC-Flexible Savings (formerly Variable Term) (note d) 2,559
IC-Flexible Savings Emp (formerly Variable Term) (note d) 37
IC-Investors (note d) 1,342
IC-Special Deposits (note d) 104
IC-1-84 (note c) 14
Cash Reserve Variable Payment (note b) 0
Cash Reserve Variable Payment-3mo. (note e) 389
IC-Future Value (note f) 37,728
IC-Future Value Emp (note f) 676
IC-Stock Market (note g) 1,228
-----------
Total 74,900
-----------
</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>
Accrued for additional credits to be allowed
at next anniversaries:
SP 74 Not Not 6
SP 75 Applicable Applicable 6
SP 76 24
SP 77 13
SP 78 13
SP 79 8
SP 80 14
SP 81A 8
SP 82A 18
SP 82B 5
SP 83A 4
SP 83B 5
IC-2-84 18
IC-2-85 13
IC-2-86 9
IC-2-87 9
IC-2-88 16
IC-Stock Market 1,265
-----------
Total 1,454
-----------
</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>
Accrued for additional credits to be allowed
at next anniversaries:
SP 74 0 0 0
SP 75 2 0 0
SP 76 27 0 0
SP 77 28 0 0
SP 78 35 0 0
SP 79 45 0 0
SP 80 36 0 0
SP 81A 52 0 0
SP 82A 68 0 0
SP 82B 124 0 0
SP 83A 16 0 0
SP 83B 36 0 0
IC-2-84 174 0 0
IC-2-85 86 0 0
IC-2-86 40 0 0
IC-2-87 54 0 0
IC-2-88 98 0 0
IC-Stock Market 22,734 0 0
----------- ----------- -----------
Total 23,655 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>
Accrued for additional credits to be allowed
at next anniversaries:
SP 74 0 0 6
SP 75 0 0 8
SP 76 0 0 29
SP 77 0 0 15
SP 78 0 0 14
SP 79 0 0 10
SP 80 0 0 15
SP 81A 0 0 23
SP 82A 0 0 61
SP 82B 0 0 43
SP 83A 0 0 7
SP 83B 0 0 19
IC-2-84 0 0 95
IC-2-85 0 0 40
IC-2-86 0 0 23
IC-2-87 0 0 27
IC-2-88 0 0 47
IC-Stock Market 0 97 12,836
---------- ---------- ----------
Total 0 97 13,318
---------- ---------- ----------
</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>
Accrued for additional credits to be allowed
at next anniversaries:
SP 74 Not Not 0
SP 75 Applicable Applicable 0
SP 76 22
SP 77 26
SP 78 34
SP 79 43
SP 80 35
SP 81A 37
SP 82A 25
SP 82B 86
SP 83A 13
SP 83B 22
IC-2-84 97
IC-2-85 59
IC-2-86 26
IC-2-87 36
IC-2-88 67
IC-Stock Market 11,066
----------
Total 11,694
----------
</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>
R Series Single-Payment certificates:
R-76 3.5 25 342 260
R-77 3.5 90 985 717
R-78 3.5 147 1,799 1,214
R-79 3.5 206 2,558 1,695
R-80 3.5 280 4,035 2,512
R-81 3.5 101 1,793 975
R-82A 3.5 432 3,599 1,752
RP-Q (note a) 1,153 2,239 4,605
R-II 3.5 339 3,810 1,412
RP-84 3.5 1,145 16,007 5,633
RP-85 3.5 360 2,144 1,901
RP-86 3.5 119 991 816
RP-87 3.5 243 1,638 1,216
RP-88 3.5 337 3,225 2,192
Cash Reserve RP (note b) 26 100 162
IC-Flexible Savings RP (note d) 15,243 110,945 126,537
Cash Reserve RP-3 mo. (note e) 4,326 44,875 46,057
IC-Flexible Savings RP Emp (note d) 388 4,039 4,726
RP-Future Value (note f) 10,195 151,698 151,698
RP-Future Value Emp (note f) 243 4,057 4,057
RP-Stock Market (note g) 7,189 42,519 44,911
D-1 (note a) 227 73,435 80,598
---------- ---------- ----------
Total 42,814 476,833 485,646
---------- ---------- ----------
</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>
R Series Single-Payment certificates:
R-76 3.5 0 0 8
R-77 3.5 0 0 25
R-78 3.5 0 0 49
R-79 3.5 0 0 57
R-80 3.5 0 0 88
R-81 3.5 0 0 36
R-82A 3.5 0 0 59
RP-Q (note a) 0 0 165
R-II 3.5 0 0 49
RP-84 3.5 0 0 207
RP-85 3.5 0 0 67
RP-86 3.5 0 0 30
RP-87 3.5 0 0 45
RP-88 3.5 0 0 74
Cash Reserve RP (note b) 0 3 6
IC-Flexible Savings RP (formally Variable Term RP) (note d) 0 94,951 8,016
Cash Reserve RP-3 mo. (note e) 0 43,571 1,518
IC-Flexible Savings RP Emp (form. Var Term RP Emp) (note d) 0 1,531 283
RP-Future Value (note f) 0 61,937 0
RP-Future Value Emp (note f) 0 1,427 0
RP-Stock Market (note g) 0 8,073 3,300
D-1 (note a) 0 24,528 2,950
----------- ----------- ----------
Total 0 236,021 17,032
----------- ----------- ----------
</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>
R Series Single-Payment certificates:
R-76 3.5 0 124 0
R-77 3.5 0 132 0
R-78 3.5 0 419 0
R-79 3.5 0 622 0
R-80 3.5 0 884 0
R-81 3.5 0 497 0
R-82A 3.5 0 427 3
RP-Q (note a) 0 1,211 0
R-II 3.5 0 371 3
RP-84 3.5 0 1,867 21
RP-85 3.5 0 604 4
RP-86 3.5 0 171 3
RP-87 3.5 0 384 0
RP-88 3.5 0 877 0
Cash Reserve RP (note b) 0 56 0
IC-Flexible Savings RP (formally Variable Term RP) (note d) 0 43,420 0
Cash Reserve RP-3 mo. (note e) 0 62,063 0
IC-Flexible Savings RP Emp (form. Var Term RP Emp) (note d) 0 1,173 0
RP-Future Value (note f) 8,061 4,660 0
RP-Future Value Emp (note f) 110 29 0
RP-Stock Market (note g) 0 17,816 0
D-1 (note a) 47 64,369 0
---------- ---------- ----------
Total 8,218 202,176 34
---------- ---------- ----------
</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>
R Series Single-Payment certificates:
R-76 3.5 17 184 144
R-77 3.5 76 806 610
R-78 3.5 115 1,203 844
R-79 3.5 146 1,649 1,130
R-80 3.5 211 2,652 1,716
R-81 3.5 74 914 514
R-82A 3.5 337 2,747 1,381
RP-Q (note a) 902 1,666 3,559
R-II 3.5 263 2,837 1,087
RP-84 3.5 831 10,844 3,952
RP-85 3.5 250 1,481 1,360
RP-86 3.5 89 781 672
RP-87 3.5 177 1,138 877
RP-88 3.5 248 1,974 1,389
Cash Reserve RP (note b) 17 67 115
IC-Flexible Savings RP (formally Variable Term RP) (note d) 18,802 168,363 186,084
Cash Reserve RP-3 mo. (note e) 3,645 27,814 29,083
IC-Flexible Savings RP Emp (form. Var Term RP Emp) (note d) 446 4,639 5,367
RP-Future Value (note f) 13,017 200,914 200,914
RP-Future Value Emp (note f) 303 5,346 5,345
RP-Stock Market (note g) 6,802 34,695 38,468
D-1 (note a) 270 39,251 43,660
---------- ---------- ----------
Total 47,038 511,965 528,271
---------- ---------- ----------
</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>
Additional Interest on R-Series Single
Payment Reserves:
R-76 3.5 Not Not 7
R-77 3.5 Applicable Applicable 14
R-78 3.5 34
R-79 3.5 36
R-80 3.5 62
R-81 3.5 18
R-82A 3.5 52
RP-Q (note a) 0
R-II 3.5 33
RP-84 3.5 120
RP-85 3.5 44
RP-86 3.5 15
RP-87 3.5 26
RP-88 3.5 45
Cash Reserve RP (note b) 0
IC-Flexible Savings RP (formally Variable Term RP) (note d) 220
Cash Reserve RP-3 mo. (note e) 74
IC-Flexible Savings RP Emp (form. Var Term RP Emp) (note d) 9
RP-Future Value (note f) 31,487
RP-Future Value Emp (note f) 824
RP-Stock Market (note g) 225
D-1 (note a) 0
-----------
Total 33,345
-----------
Accrued for additional credits to be allowed
at next anniversaries
RP-Stock Market 301
-----------
Total single payment 2,407,521
-----------
Paid-up certificates:
Series 15 and 20 3.25 91 1,060 1,005
" 15A and 22A 3.5 1,869 14,488 12,878
" I-76 3.5 812 4,181 2,484
----------- ----------- -----------
Total 2,772 19,729 16,367
----------- ----------- -----------
</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>
Additional Interest on R-Series Single
Payment Reserves:
R-76 3.5 7 0 0
R-77 3.5 24 0 0
R-78 3.5 37 0 0
R-79 3.5 52 0 0
R-80 3.5 75 0 0
R-81 3.5 36 0 0
R-82A 3.5 77 0 0
RP-Q (note a) 165 0 0
R-II 3.5 59 0 0
RP-84 3.5 220 0 0
RP-85 3.5 76 0 0
RP-86 3.5 34 0 0
RP-87 3.5 49 0 0
RP-88 3.5 81 0 0
Cash Reserve RP (note b) 6 0 0
IC-Flexible Savings RP (formally Variable Term RP) (note d) 8,812 0 0
Cash Reserve RP-3 mo. (note e) 1,518 0 0
IC-Flexible Savings RP Emp (form. Var Term RP Emp) (note d) 309 0 0
RP-Future Value (note f) 17,207 0 0
RP-Future Value Emp (note f) 494 0 0
RP-Stock Market (note g) 497 0 0
D-1 (note a) 3,595 0 0
----------- ----------- -----------
Total 33,430 0 0
----------- ----------- -----------
Accrued for additional credits to be allowed
at next anniversaries:
RP-Stock Market 5,102 0 0
---------- ----------- ----------
Total single payment 183,788 1,755,462 119,349
---------- ----------- ----------
Paid-up certificates:
Series 15 and 20 3.25 26 0 49
" 15A and 22A 3.5 429 0 2,536
" I-76 3.5 83 0 345
----------- ----------- ----------
Total 538 0 2,930
----------- ----------- ----------
</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>
Additional Interest on R-Series Single
Payment Reserves:
R-76 3.5 0 1 8
R-77 3.5 0 3 25
R-78 3.5 0 3 48
R-79 3.5 0 6 57
R-80 3.5 0 9 88
R-81 3.5 0 5 36
R-82A 3.5 0 8 59
RP-Q (note a) 0 0 165
R-II 3.5 0 4 49
RP-84 3.5 0 15 207
RP-85 3.5 0 6 67
RP-86 3.5 0 2 30
RP-87 3.5 0 3 45
RP-88 3.5 0 9 74
Cash Reserve RP (note b) 0 0 6
IC-Flexible Savings RP (formally Variable Term RP) (note d) 0 600 8,016
Cash Reserve RP-3 mo. (note e) 0 22 1,518
IC-Flexible Savings RP Emp (form. Var Term RP Emp) (note d) 0 22 284
RP-Future Value (note f) 4,294 938 0
RP-Future Value Emp (note f) 59 11 0
RP-Stock Market (note g) 0 14 377
D-1 (note a) 0 644 2,950
---------- ---------- ----------
Total 4,353 2,325 14,109
---------- ---------- ----------
Accrued for additional credits to be allowed
at next anniversaries:
RP-Stock Market 0 4 2,924
---------- ---------- ----------
Total single payment 32,699 1,144,559 158,227
---------- ---------- ----------
Paid-up certificates:
Series 15 and 20 3.25 215 58 288
" 15A and 22A 3.5 1,124 1,369 1,332
" I-76 3.5 0 657 28
---------- ---------- ----------
Total 1,339 2,084 1,648
---------- ---------- ----------
</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>
Additional Interest on R-Series Single
Payment Reserves:
R-76 3.5 Not Not 5
R-77 3.5 Applicable Applicable 10
R-78 3.5 20
R-79 3.5 25
R-80 3.5 40
R-81 3.5 13
R-82A 3.5 62
RP-Q (note a) 0
R-II 3.5 39
RP-84 3.5 118
RP-85 3.5 47
RP-86 3.5 17
RP-87 3.5 27
RP-88 3.5 43
Cash Reserve RP (note b) 0
IC-Flexible Savings RP (formally Variable Term RP) (note d) 416
Cash Reserve RP-3 mo. (note e) 52
IC-Flexible Savings RP Emp (form. Var Term RP Emp) (note d) 12
RP-Future Value (note f) 43,462
RP-Future Value Emp (note f) 1,248
RP-Stock Market (note g) 331
D-1 (note a) 1
-----------
Total 45,988
-----------
Accrued for additional credits to be allowed
at next anniversaries:
RP-Stock Market 2,475
----------
Total single payment 3,130,635
----------
Paid-up certificates:
Series 15 and 20 3.25 47 550 519
" 15A and 22A 3.5 1,504 13,310 12,018
" I-76 3.5 737 3,635 2,227
---------- ---------- ----------
Total 2,288 17,495 14,764
---------- ---------- ----------
</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>
Additional credits and accrued interest thereon:
Series 15 and 20 2.5 Not Not 46
" 15A and 22A 3 Applicable Applicable 672
" Series I-76 3.5 179
-----------
Total 897
-----------
Accrued for additional credits to be allowed
at next anniversaries 1
----------- ----------- -----------
Total paid-up 2,772 19,729 17,265
----------- ----------- -----------
Optional settlement certificates:
Series 1, IST&G 3 16 14
Other series and conversions from Single
Payment certificates 2.5-3-3-3.5 9,221 86,006
Series R-76 thru R-82A 3 100 403
Series R-II & RP-2-84 thru 88 3.5 86 1,895
Reserve Plus Single-Payment (note a) 300 2,827
Reserve Plus Flex-Pay & IC-Q-Inst (note a) 23 123
Series R-Installment (note a) 126 703
Series R-Single-Payment (note a) 63 192
Additional credits and accrued interest thereon 2.5-3 Not Not 12,723
Additional credits and accrued int. thereon-IST&G 2.5-3 Applicable Applicable 0
Accrued for additional credits to be allowed
at next anniversaries 289
Accrued for additional credits to be allowed
at next anniversaries-R-76 thru R-82A & R-II 3
Accrued for additional credits to be allowed
at next anniversaries-IST&G 0
----------- -----------
Total optional settlement 9,935 105,178
----------- -----------
Not
Due to unlocated certificate holders Applicable 341
-----------
Total certificate reserves 2,887,405
===========
</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>
Additional credits and accrued interest thereon:
Series 15 and 20 2.5 1 0 1
" 15A and 22A 3 17 0 1
" Series I-76 3.5 6 0 0
----------- ----------- ----------
Total 24 0 2
----------- ----------- ----------
Accrued for additional credits to be allowed
at next anniversaries 78 0 0
----------- ----------- ----------
Total paid-up 640 0 2,932
----------- ----------- ----------
Optional settlement certificates:
Series 1, IST&G 3 0 0 0
Other series and conversions from Single
Payment certificates 2.5-3-3-3.5 2,768 0 45,122
Series R-76 thru R-82A 3 10 0 5
Series R-II & RP-2-84 thru 88 3.5 39 0 36
Reserve Plus Single-Payment (note a) 105 0 34
Reserve Plus Flex-Pay & IC-Q-Inst (note a) 4 0 26
Series R-Installment (note a) 20 0 87
Series R-Single-Payment (note a) 7 0 0
Additional credits and accrued interest thereon 2.5-3 312 0 554
Additional credits and accrued int. thereon-IST&G 2.5-3 0 0 0
Accrued for additional credits to be allowed
at next anniversaries 1,316 0 0
Accrued for additional credits to be allowed
at next anniversaries-R-76 thru R-82A & R-II 18 0 0
Accrued for additional credits to be allowed
at next anniversaries-IST&G 0 0 0
----------- ----------- ----------
Total optional settlement 4,599 0 45,864
----------- ----------- ----------
Not
Due to unlocated certificate holders Applicable 204
---------- ----------- ----------
Total certificate reserves 205,791 1,866,864 180,370
=========== =========== ===========
Provision for certificate reserves and additional
credits per Statement of Operations 177,527
Provision for reconversion applied against reserve
recoveries from terminations prior to maturity in
Statement of Operations 1
Income (loss) from purchased and written call options
included in provision for certificate reserves
in Statement of Operations 28,263
-----------
205,791
===========
</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>
Additional credits and accrued interest thereon:
Series 15 and 20 2.5 6 1 20
" 15A and 22A 3 87 35 50
" Series I-76 3.5 0 30 0
---------- ---------- ----------
Total 93 66 70
---------- ---------- ----------
Accrued for additional credits to be allowed
at next anniversaries 0 0 2
---------- ---------- ----------
Total paid-up 1,432 2,150 1,720
---------- ---------- ----------
Optional settlement certificates:
Series 1, IST&G 3 5 0 0
Other series and conversions from Single
Payment certificates 2.5-3-3-3.5 11,820 10,195 0
Series R-76 thru R-82A 3 100 17 0
Series R-II & RP-2-84 thru 88 3.5 154 806 0
Reserve Plus Single-Payment (note a) 127 596 0
Reserve Plus Flex-Pay & IC-Q-Inst (note a) 17 25 0
Series R-Installment (note a) 127 169 0
Series R-Single-Payment (note a) 39 28 0
Additional credits and accrued interest thereon 2.5-3 622 947 652
Additional credits and accrued int. thereon-IST&G 2.5-3 0 0 0
Accrued for additional credits to be allowed
at next anniversaries 30 (1) 557
Accrued for additional credits to be allowed
at next anniversaries-R-76 thru R-82A & R-II 4 0 6
Accrued for additional credits to be allowed
at next anniversaries-IST&G 0 0 0
---------- ---------- ----------
Total optional settlement 13,045 12,782 1,215
---------- ---------- ----------
Not
Due to unlocated certificate holders Applicable 159
---------- ---------- ----------
Total certificate reserves 54,826 1,276,667 180,363
=========== =========== ===========
</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>
Additional credits and accrued interest thereon:
Series 15 and 20 2.5 Not Not 21
" 15A and 22A 3 Applicable Applicable 518
" Series I-76 3.5 155
----------
Total 694
----------
Accrued for additional credits to be allowed
at next anniversaries 77
---------- ---------- ----------
Total paid-up 2,288 17,495 15,535
---------- ---------- ----------
Optional settlement certificates:
Series 1, IST&G 3 14 9
Other series and conversions from Single
Payment certificates 2.5-3-3-3.5 9,910 111,881
Series R-76 thru R-82A 3 75 301
Series R-II & RP-2-84 thru 88 3.5 69 1,010
Reserve Plus Single-Payment (note a) 231 2,243
Reserve Plus Flex-Pay & IC-Q-Inst (note a) 21 111
Series R-Installment (note a) 104 514
Series R-Single-Payment (note a) 49 132
Additional credits and accrued interest thereon 2.5-3 Not Not 11,368
Additional credits and accrued int. thereon-IST&G 2.5-3 Applicable Applicable 0
Accrued for additional credits to be allowed
at next anniversaries 1,019
Accrued for additional credits to be allowed
at next anniversaries-R-76 thru R-82A & R-II 11
Accrued for additional credits to be allowed
at next anniversaries-IST&G 0
---------- ----------
Total optional settlement 10,473 128,599
---------- ----------
Not
Due to unlocated certificate holders Applicable 386
----------
Total certificate reserves 3,628,574
==========
<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.
/TABLE
<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, 1995
($ 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 9 5 5 19
Series 15A, including extended
maturities 0 10 4 14
Series 22A, including extended
maturities 344 342 1,969 2,655
Series I-76 23 32 0 55
Series Reserve Plus Flexible
Payment 0 0 85 85
Series IC-Q-Installment 0 0 90 90
Series IC-Q-Ins 0 0 3,986 3,986
Series IC-Q-Ins Emp 0 0 25 25
Series IC-1 0 0 4,003 4,003
Series IC-1 Emp 0 0 36 36
Series RP-Q-Installment 0 0 111 111
Series RP-Q-Flexible Payment 0 0 29 29
Series RP-Q-Ins 0 0 134 134
Series RP-Q-Ins Emp 0 0 1 1
Series RP-1 0 0 67 67
------------ --------- --------------- --------
Total 376 389 10,545 11,310
============= ========= =============== ========
</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, 1995
($ 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 40 581 5 626
Series 15A, including extended
maturities 199 199 5 403
Series 22A, including extended
maturities 1,904 2,752 1,968 6,624
Series I-76 283 0 0 283
Series Reserve Plus Flexible
Payment 0 1 0 1
Series IC-Q-Installment 0 15 0 15
Series IC-Q-Ins 0 10 0 10
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 86 0 86
Series RP-Q-Flexible Payment 0 1 0 1
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 2,426 3,645 1,978 8,049
=========== ============ ============ =======
</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, 1995
($ 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 1 0 0 1
Series 15A, including extended
maturities 0 0 1 1
Series 22A, including extended
maturities 14 0 101 115
Series I-76 2 2 0 4
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 17 2 102 121
============= =========== =============== ======
</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, 1995
($ 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 5 29 0 0 34
Series 15A, including extended
maturities 10 2 1 0 13
Series 22A, including extended
maturities 343 99 101 2 545
Series I-76 32 0 0 1 33
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 390 130 102 3 625
============= ============= =========== ============= ======
<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 $ 108
Reconversions of paid-up certificates-
charged to paid-up reserves 64
Transfers from maturities to extended maturities 418
------
Total 590
======
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 $ 8,572
Conversions to optional settlement certificates-
credited to optional settlement reserves 764
Conversions to paid-up certificates-credited to
paid-up reserve 499
Transfers to extended maturities at maturity 418
------
Total 10,253
======
Accrual for additional credits to be allowed on install-
ment certificates at next anniversaries:
Other deductions of $108 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 $1 shown as charged to profit and loss has been
deducted from reserve recoveries in the accompanying Statement
of Operations.
Other deductions of $1 represent amounts credited to installment
certificate reserves to mature, on reconversions of paid-up
certificates.
<PAGE>
PAGE 109
Certificate Reserves
($ 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 $2,932 represent $2,930 conversions from
installment certificates (charges to installment reserves
less surrender charges) and $2 transferred from accruals
for additional credits to be allowed at next anniversaries.
Other deductions of $1,720 represent $456 transfers credited to
installment reserves on reconversions to installment certifi-
cates, $2 transferred for accruals for additional credits and
accrued interest thereon and $1,262 transferred to settlement options.
Default interest on installment certificates:
Other additions of $0 represent reconversion of paid-up certificates
charged to paid-up reserves.
Other deductions of $6 represent $5 conversion to paid-up
certificates - credited to paid-up reserves, and $1 transferred
to advance payments as late payments are credited to certificates.
Optional settlement certificates:
Other additions of $45,864 represent $44,048 transferred from
installment certificate reserves (less surrender charges),
Single-Payment and Series D certificate reserves upon election of
optional settlement privileges, $1,262 transferred from paid-up
certificate reserve and $554 transferred from accruals for
additional credits to be allowed at next anniversaries.
Other deductions of $1,215 represent $557 transferred to reserves
for additional credits and accrued interest thereon, and $658
transferred to optional settlement reserves.
Single-Payment certificates:
Other additions of $119,349 represent $349 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 $467, R82-B $165, Cash Reserve Single-Payment
$10, Cash Reserve $203, Cash Reserve 3mo. $10,354, Cash Reserve-
RP $6, Cash Reserve-RP-3mo. $1,518, Flexible Savings $40,134, Flexible
Savings Emp $766, Flexible Savings-RP $8,016, Flexible Savings-RP
Emp $283, Investors $32,275, Stock Market $13,449, AEBI Stock Market
$1,387, Stock Market RP $3,300 and Special Deposits $1,775 and $4,892
transferred from accruals at anniversaries and maintained in a separate
reserve account.
<PAGE>
PAGE 110
Certificate Reserves
($ in thousands)
Part 2 - Descriptions of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Other deductions of $158,227 represent $38,811 Single-Payment
and $34 Series D and R Single-Payment transferred to optional
settlement reserves, $4,892 transferred to reserves for additional
credits and accrued interest thereon, $349 transferred to a separate
reserve account from the accrual account and transferred to reserves on
a quarterly basis for Reserve Plus Single-Payment $467, R82-B $165,
Cash Reserve Single-Pay $10, Cash Reserve $203, Cash Reserve-3 $10,354
Cash Reserve-Qualified $6, Cash Reserve-Qualified-3 $1,518, Flexible
Savings $40,134, Flexible Savings Employee $766, Flexible Savings
Qualified $8,016, Flexible Savings Qualified Emp $283, Investors $13,449
Stock Market $3,300, AEBI Stock Market $1,387, Stock Market RP $32,275
and Special Deposits $1,775 and $33 transferred to Federal tax withholding.
Due to unlocated certificate holders:
Other additions of $204 represent amounts equivalent to payments
due certificate holders who could not be located.
Other deductions of $159 represent payments to certificate holders
credited to cash.
/TABLE
<PAGE>
PAGE 111
<TABLE>
<CAPTION>
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 1995
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
- ------------------ ------- ------------------- --------------------- ------------------- ---------- ----------
1994 1995 1994 1995 1994 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C>
15, including extended
maturities 73-84 1 1 5 5 1 1 0 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 1 1 5 5 1 1 0 0
------- ------- --------- --------- -------- -------- --------- ---------
20, including extended
maturities 145-156 1 0 6 0 3 0 0 0
157-168 0 1 0 6 0 4 0 0
169-180 0 0 0 0 0 0 0 0
181-192 0 0 0 0 0 0 0 0
193-204 1 0 8 0 6 0 0 0
205-216 1 2 20 27 16 23 0 0
217-228 1 0 10 0 9 0 0 9
229-240 (a) 1 0 5 0 5 0 0 5
241-252 0 0 0 0 0 0 0 5
253-264 2 0 19 0 11 0 5 0
265-276 0 1 0 9 0 6 0 0
277-288 1 0 14 0 10 0 0 0
289-300 3 1 54 18 34 10 0 0
301-312 4 3 41 47 35 36 0 0
313-324 3 5 47 52 38 47 0 0
325-336 8 3 96 47 84 41 0 16
337-348 13 7 149 78 145 72 0 10
349-360 (a) 66 10 806 123 799 127 117 581
------- ------- --------- --------- -------- -------- --------- ---------
Total 105 33 1,275 407 1,195 366 122 626
------- ------- --------- --------- -------- -------- --------- ---------
15A, including
extended maturities 73-84 1 0 17 0 6 0 0 0
85-96 0 1 0 16 0 7 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 8 0 5 0 0 0
133-144 0 1 0 8 0 6 0 0
145-156 0 0 0 0 0 0 0 0
157-168 2 1 132 66 116 59 0 0
169-180 (a) 4 2 35 88 33 84 0 11
181-192 1 1 10 7 7 5 0 0
193-204 2 1 12 11 9 8 0 0
205-216 3 2 63 12 70 9 8 0
217-228 10 2 282 79 243 66 0 171
229-240 46 5 546 65 496 60 9 29
241-252 23 40 269 479 263 466 60 192
------- ------- --------- --------- -------- -------- --------- ---------
Total 93 56 1,374 831 1,248 770 77 403
------- ------- --------- --------- -------- -------- --------- ---------
</TABLE>
<PAGE>
PAGE 112
<TABLE>
<CAPTION>
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 1995
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
- ------------------ ------- ------------------- --------------------- ------------------- ---------- ----------
1994 1995 1994 1995 1994 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C>
22A, including
extended maturities 37-48 1 0 11 0 1 0 0 0
49-60 0 2 0 22 0 3 0 0
61-72 2 2 56 56 10 10 0 0
73-84 2 1 71 13 16 3 0 0
85-96 2 2 56 71 14 18 0 0
97-108 1 2 19 56 6 16 0 6
109-120 6 2 131 38 45 12 0 0
121-132 0 5 0 113 0 43 0 0
133-144 4 1 118 19 48 8 0 30
145-156 7 4 266 62 128 29 2 0
157-168 11 5 313 244 165 126 26 0
169-180 15 10 394 377 225 216 0 42
181-192 15 15 330 379 206 237 2 0
193-204 17 15 308 328 209 223 4 0
205-216 29 18 690 337 507 249 46 128
217-228 122 26 2,261 621 1,807 494 15 94
229-240 627 109 10,579 1,956 8,913 1,680 452 713
241-252 558 565 8,617 9,154 7,814 8,287 351 471
253-264 (a) 489 485 6,759 7,439 6,535 7,207 628 4,358
265-276 150 134 3,387 3,353 2,035 2,017 105 255
277-288 142 130 2,816 2,890 1,789 1,838 180 57
289-300 128 132 2,436 2,481 1,639 1,672 27 169
301-312 117 114 1,744 2,131 1,244 1,520 42 81
313-324 95 103 1,601 1,539 1,209 1,162 74 80
325-336 47 81 715 1,341 570 1,069 21 59
337-348 44 43 643 672 540 566 14 64
349-360 10 38 140 539 122 476 29 17
361-372 0 7 0 91 0 84 9 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 2,641 2,051 44,461 36,322 35,797 29,265 2,027 6,624
------- ------- --------- --------- -------- -------- --------- ---------
</TABLE>
<PAGE>
PAGE 113
<TABLE>
<CAPTION>
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 1995
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
- ------------------ ------- ------------------- --------------------- ------------------- ---------- ----------
1994 1995 1994 1995 1994 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C>
I-76 49-60 1 1 61 62 5 6 0 0
61-72 1 0 31 0 4 0 4 0
73-84 1 0 123 0 17 0 0 0
85-96 4 1 105 31 17 5 19 5
97-108 1 2 31 58 5 11 3 0
109-120 2 1 52 31 11 6 0 0
121-132 3 2 55 52 13 12 7 0
133-144 9 4 221 80 58 21 7 6
145-156 52 8 1,408 188 423 55 23 9
157-168 166 49 4,552 1,301 1,467 430 92 109
169-180 176 133 4,438 3,451 1,563 1,222 300 34
181-192 214 153 5,028 3,832 1,933 1,474 248 36
193-204 238 169 4,844 3,973 2,024 1,658 287 54
205-216 213 202 4,712 4,050 2,139 1,832 356 30
217-228 119 180 2,820 4,087 1,357 2,003 316 0
229-240 0 96 0 2,113 0 1,095 129 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 1,200 1,001 28,481 23,309 11,036 9,830 1,791 283
------- ------- --------- --------- -------- -------- --------- ---------
Reserve Plus Flexible
Payment 121-132 82 0 927 0 354 0 0 0
133-144 258 68 2,344 702 1,356 280 137 0
145-156 228 220 2,275 1,993 1,216 1,164 383 1
157-168 0 178 0 1,705 0 892 435 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 568 466 5,546 4,400 2,926 2,336 955 1
------- ------- --------- --------- -------- -------- --------- ---------
IC-Q-Installment 97-108 257 0 2,913 0 1,019 0 0 0
109-120 856 151 9,209 1,648 3,633 580 407 0
121-132 72 87 709 939 393 283 839 15
133-144 0 64 0 628 0 335 104 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 1,185 302 12,831 3,215 5,045 1,198 1,350 15
------- ------- --------- --------- -------- -------- --------- ---------
</TABLE>
<PAGE>
PAGE 114
<TABLE>
<CAPTION>
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 1995
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
- ------------------ ------- ------------------- --------------------- ------------------- ---------- ----------
1994 1995 1994 1995 1994 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C>
IC-Q-Ins 13-24 1 0 6 0 2 0 0 0
25-36 4,876 1 75,611 6 20,778 3 0 0
37-48 8,791 2,919 129,292 41,871 40,539 13,764 11,613 0
49-60 5,811 5,820 77,633 79,538 28,715 28,903 19,387 10
61-72 5,541 4,303 68,420 54,527 31,173 24,690 10,105 0
73-84 5,125 3,360 64,455 38,943 29,680 17,845 17,607 0
85-96 1,875 3,391 22,029 41,425 10,165 18,292 14,916 0
85-108 581 1,292 6,442 14,662 3,006 6,741 4,570 0
109-120 0 419 0 4,373 0 2,036 1,300
------- ------- --------- --------- -------- -------- --------- ---------
Total 32,601 21,505 443,888 275,345 164,058 112,274 79,498 10
------- ------- --------- --------- -------- -------- --------- ---------
IC-Q-Ins Emp 13-24 1 0 6 0 1 0 0 0
25-36 35 1 809 6 137 2 0 0
37-48 62 21 865 655 274 115 54 0
49-60 28 36 294 396 129 156 184 0
61-72 26 22 232 198 131 109 47 0
73-84 25 9 383 75 139 35 100 0
85-96 16 16 223 251 131 56 102 0
85-96 0 12 0 184 0 78 64 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 193 117 2,812 1,765 942 551 551 0
------- ------- --------- --------- -------- -------- --------- ---------
IC-1 1-12 20,934 19,035 404,109 357,345 21,110 21,298 851 0
13-24 16,341 16,818 293,285 315,789 43,444 44,618 11,525 0
25-36 9,161 14,059 167,782 249,976 34,332 57,967 6,209 0
37-48 0 7,598 0 129,973 0 39,138 6,071 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 46,436 57,510 865,176 1,053,083 98,886 163,021 24,656 0
------- ------- --------- --------- -------- -------- --------- ---------
IC-1 Emp 1-12 182 158 3,217 2,648 178 160 25 0
13-24 110 120 2,013 1,688 275 271 164 0
25-36 80 90 1,875 1,473 281 363 42 0
37-48 0 65 0 1,420 0 310 81 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 372 433 7,105 7,229 734 1,104 312 0
------- ------- --------- --------- -------- -------- --------- ---------
</TABLE>
<PAGE>
PAGE 115
<TABLE>
<CAPTION>
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 1995
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
- ------------------ ------- ------------------- --------------------- ------------------- ---------- ----------
1994 1995 1994 1995 1994 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C>
R Flexible Payment 109-120 281 0 4,573 0 1,694 0 0 0
121-132 41 52 635 791 346 389 223 76
133-144 138 36 1,934 550 1,018 314 44 0
145-156 173 103 2,232 1,429 1,779 728 265 10
145-156 0 127 0 1,609 0 1,264 491 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 633 318 9,374 4,379 4,837 2,695 1,023 86
------- ------- --------- --------- -------- -------- --------- ---------
RP-Q-Installment 97-108 130 0 2,141 0 553 0 0 0
109-120 82 95 959 1,575 405 367 124 1
121-132 0 10 0 129 0 41 125 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 212 105 3,100 1,704 958 408 249 1
------- ------- --------- --------- -------- -------- --------- ---------
RP-Q-Ins 13-24 1 0 50 0 5 0 0 0
25-36 75 0 3,308 0 994 0 5 0
37-48 182 50 5,370 1,421 1,541 427 627 0
49-60 162 108 3,791 2,423 903 753 894 0
61-72 152 116 2,546 2,781 974 676 285 0
73-84 202 108 3,070 1,907 1,172 681 331 0
85-96 79 137 1,066 2,043 425 863 680 0
97-108 27 55 353 626 108 237 209 0
109-120 0 21 0 200 0 72 40 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 880 595 19,554 11,401 6,122 3,709 3,071 0
------- ------- --------- --------- -------- -------- --------- ---------
RP-Q-Ins Emp 25-36 4 0 169 0 14 0 0 0
37-48 1 3 6 150 2 10 8 0
49-60 1 1 240 6 3 3 0 0
61-72 1 0 20 0 8 0 2 0
73-84 0 1 0 20 0 10 0 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 7 5 435 176 27 23 10 0
------- ------- --------- --------- -------- -------- --------- ---------
RP-1 1-12 169 150 6,429 3,825 260 300 33 0
13-24 130 136 4,423 4,734 675 618 23 0
25-36 132 115 4,142 3,531 839 1,067 127 0
37-48 0 97 0 2,762 0 646 277 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 431 498 14,994 14,852 1,774 2,631 460 0
------- ------- --------- --------- -------- -------- --------- ---------
</TABLE>
<PAGE>
PAGE 116
<TABLE>
<CAPTION>
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 1995
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
- ------------------ ------- ------------------- --------------------- ------------------- ---------- ----------
1994 1995 1994 1995 1994 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C>
RP-1-Emp 1-12 0 3 0 618 0 8 0 0
13-24 2 0 636 0 6 0 0 0
25-36 0 2 0 636 0 6 0 0
------- ------- --------- --------- -------- -------- --------- ---------
Total 2 5 636 1,254 6 14 0 0
------- ------- --------- --------- -------- -------- --------- ---------
Total All Series 87,560 85,001 1,461,047 1,439,677 335,592 330,196 116,152 8,049
======= ======= ========= ========= ======== ======== ========= =========
(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.
<PAGE>
PAGE 117
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 $1,000 face-amount certificate basis for the term of
the certificate), is filed in Part 4 of Schedule IX as part of Post-
effective Amendment No. 9 to Registration Statement No. 2-17681, Post
effective Amendment No. 1 to Registration Statement No. 2-23772 and
Post-effective Amendment No. 1 to Registration Statement No. 2-258081
and is incorporated herein by reference.
</TABLE>
<PAGE>
PAGE 118
<TABLE>
<CAPTION>
IDS CERTIFICATE COMPANY SCHEDULE VII
Valuation and Qualifying Accounts
Years ended December 31, 1995, 1994 and 1993
($ thousands)
Year ended December 31, 1995
----------------------------
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>
Allowance for losses:
Securities $1,000 0 0 890(a) 110
Conventional
first mortgage
loans 611 0 0 0 611
Other assets 2,368 100 0 0 2,468
Year ended December 31, 1994
----------------------------
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 $2,049 0 0 1,049(a) 1,000
Conventional
first mortgage
loans 961 0 0 350(b) 611
Other assets 2,018 0 350(b) 0 2,368
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
-------------------- --------- -------- ----- ---------- ---------
Allowance for losses:
Securities $14,210 0 0 12,161(a) 2,049
Conventional
first mortgage
loans 1,711 0 0 750(c) 961
Other assets 1,488 0 530(c) 0 2,018
a) Applicable to reversal on securities sold.
b) Transferred from mortgage loans on real estate to other assets.
c) Represents $530 transferred from mortgage loans on real estate to other
assets and $220 reversal.
</TABLE>
<PAGE>
PAGE 1
IDS Certificate Company
Registration Number 2-23772
EXHIBIT INDEX
Exhibit 3 (1)e: Letter Amendment to Marketing Agreement dated
October 10, 1991, between registrant and
American Express Bank Ltd.
<PAGE>
PAGE 1
July 10, 1995
American Express Bank Ltd.
60 Buckingham Palace Road
London SW1W ORR, England
Telecopy: 44171-730-5067
Ladies and Gentlemen:
This is to confirm our agreement that, effective upon your
acceptance of and agreement to this letter, the attached Schedule A
will replace the current Schedule A to the Marketing Agreement made
as of October 10, 1991, between IDS Certificate Company and
American Express Bank Ltd., in accordance with Section I(1) of said
Marketing Agreement.
Very truly yours,
IDS CERTIFICATE COMPANY
By: /s/ Stuart A. Sedlacek
Print name: Stuart A. Sedlacek
Print title: President
Accepted and agreed to by
AMERICAN EXPRESS BANK LTD.
By: /s/ Jeffrey Lawrence
Print name: Jeffrey Lawrence
Print title: Head of Private Banking
Date: July 31, 1995
<PAGE>
PAGE 2
Schedule A
1. Pursuant to Section I(1) of the Marketing Agreement dated as
of October 10, 1991, AEB may offer a face-amount certificate
issued by Company that guarantees interest determined in
advance for a term of 1, 2, 3, 6, 12, 24 or 36 months, at the
client's option (the "Product").
2. AEB shall be paid compensation for marketing of the Product
through AEB's London branch as follows:
(a) For Products sold as a result of marketing through London
branch in an amount equal to $1 million or more, a fee
equal to .50% per annum of the amount outstanding for
each Product;
(b) For Products sold as a result of marketing through the
London branch in an amount from $500,000 to $999,999, a
fee equal to .65% per annum of the amount outstanding for
each Product;
(c) For Products sold as a result of marketing through the
London branch In" an amount from $250,000 to $499,999,
fee equal to .80% per annum of the amount outstanding for
each Product; and
(d) For Products sold as a result of marketing through the
London branch in an amount from $100,000 to $249,999, a
fee equal to 1.25% per annum of the amount outstanding
for each Product.
3. The amount outstanding shall be calculated as of the end of
each term or Product quarter, as the case may be. The
calculations shall take into account any additions to or
withdrawals from a Product. Compensation shall be calculated
on a 360-day year (30-day month) basis. AEB shall be paid
after the end of each term for the 1, 2 and 3 month term
Products and after the end of each Product quarter for the 6,
12, 24 and 36 month term Products. The compensation payable
to AEB for Product terms and quarters ending during any given
calendar month shall be aggregated and paid to AEB in a lump
sum promptly after each calendar month end.
