FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File No. 0-13295
CATERPILLAR FINANCIAL SERVICES CORPORATION
(Exact name of Registrant as specified in its charter)
DELAWARE
37-1105865
(State or other jurisdiction of
(I.R.S. Employer Identification No.)
incorporation or organization)
3322 WEST END AVENUE, NASHVILLE, TENNESSEE 37203-0983
(Address of principal executive offices)
Registrant's telephone number, including area code:
(615) 386-5800
The Registrant complies with the conditions set forth in General
Instruction (H)(1)(a) and (b) of Form 10-Q is therefore filing this
form with the reduced disclosure format.
Indicate by a 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
At September 30, 1998 one share of common stock of the
Registrant was outstanding.
HIGHLIGHTS: THIRD QUARTER 1998 VS. THIRD QUARTER 1997
Caterpillar Financial Services Corporation reported record
revenues, profit, and new retail financing activity.
Revenues were a record $283.0 million, an increase of $77.5
million or 37.7% from last year.
Profit was $35.2 million, a $12.2 million or 53.0% increase
compared with 1997.
New retail financing business was a third-quarter record of
$1,422.8 million, an increase of $394.8 million or 38.4% from 1997.
As a result of record new business and a program started in
the first quarter of this year to purchase trade receivables from
Caterpillar Inc. "Caterpillar," the portfolio increased 41% over
the same period last year to more than $10.4 billion.
James S. Beard, vice president of Caterpillar Inc. and
president of Caterpillar Financial Services Corporation said, "Our
record increases in new retail financing business and revenues are
a result of our employees' commitment to serving Caterpillar
dealers and customers worldwide."
Caterpillar Financial Services Corporation
Form 10-Q for the Quarter Ended September 30, 1998
Index
PART I. FINANCIAL INFORMATION Page
No.
Item 1. Financial Statements (Unaudited)
Consolidated Statement of Financial Position 4
Consolidated Results of Operations 5
Consolidated Statement of Changes in Equity 6
Consolidated Statement of Cash Flows 7
Item 2. Management's Discussion and Analysis of Results
of Operations and Financial Condition 8-12
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
In addition to our accompanying unaudited consolidated financial
statements, we suggest that you read our Annual Report on Form 10-
K. Although not incorporated by reference in this document,
additional information about us is available in our 1997 Annual
Report and on our web page http://www.CAT.com. The documents
mentioned above are available by writing to: Legal Dept.,
Caterpillar Financial Services Corp.; 3322 West End Ave.;
Nashville, TN 37203.
We believe this information reflects all adjustments, including
normal and recurring accruals, necessary to fairly present the
consolidated statements of financial position, results of
operations, changes in equity, and cash flows for the periods
presented. The results for interim periods do not necessarily
indicate the results we expect for the year.
Caterpillar Financial Services Corporation
Consolidated Statement Of Financial Position
(Unaudited)
(Millions of Dollars)
Sept.30, Dec. 31, Sept.30,
1998 1997 1997
Assets:
Cash and cash equivalents $ 62.7 $ 41.5 $ 30.3
Finance receivables
Wholesale notes receivable 2,504.5 497.9 941.5
Retail notes receivable 2,145.3 1,852.1 1,724.3
Investment in finance receivables 6,005.4 4,993.6 4,884.4
10,655.2 7,343.6 7,550.2
Less: Unearned income 819.4 661.8 657.0
Allowance for credit losses 100.9 83.5 85.0
9,734.9 6,598.3 6,808.2
Equipment on operating leases,
less accumulated depreciation 629.7 558.7 553.3
Deferred income taxes 6.1 4.6 4.1
Other assets 290.8 223.7 166.5
Total assets $10,724.2 $7,426.8 $7,562.4
Liabilities and stockholder's equity:
Payable to dealers and others $ 91.2 $ 84.9 $74.5
Payable to Caterpillar - borrowings 44.6 243.5 200.0
Payable to Caterpillar - other 81.9 4.1 2.6
Accrued interest payable 122.4 47.3 77.4
Income taxes payable 19.7 81.4 73.2
Other liabilities 66.1 22.2 26.4
Short-term borrowings 2,972.8 2,731.5 2,646.1
Current maturities of long-term debt 1,853.4 1,087.9 1,077.5
Long-term debt 4,321.3 2,274.2 2,570.1
Deferred income taxes 27.2 38.7 36.4
Total liabilities 9,600.6 6,615.7 6,784.2
Common stock - $1 par value
Authorized: 2,000 shares
Issued and outstanding: One share 625.0 395.0 375.0
Retained Earnings 527.1 442.7 420.4
Foreign currency translation adjustment(28.5) (26.6) (17.2)
Total stockholder's equity 1,123.6 811.1 778.2
Total liabilities and stockholder's
equity $10,724.2 $7,426.8 $7,562.4
Caterpillar Financial Services Corporation
Consolidated Results of Operations
(Unaudited)
(Millions of Dollars)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1998 1997 1998 1997
Revenues:
Wholesale finance $ 46.3 $ 19.2 $ 101.2 $ 35.7
Retail finance 159.4 125.9 451.1 365.3
Rental 52.5 47.0 151.5 132.9
Other 24.8 13.4 56.6 44.0
Total revenues 283.0 205.5 760.4 577.9
Expenses:
Interest 135.7 96.6 366.3 263.9
Depreciation 41.6 36.4 119.6 102.4
General, operating, and
administrative 30.9 25.3 87.5 69.5
Provision for credit losses 17.7 10.9 51.1 29.1
Other expense .4 .1 1.5 .9
Total expenses 226.3 169.3 626.0 465.8
Profit before income taxes 56.7 36.2 134.4 112.1
Provision for income taxes 21.5 13.2 50.0 40.2
Profit $ 35.2 $ 23.0 $ 84.4 $ 71.9
Caterpillar Financial Services Corporation
Consolidated Statement Of Changes in Equity
(Unaudited)
(Millions of Dollars)
Nine Months Ended
Sept. 30, Sept. 30,
1998 1997
Retained earnings:
Balance at January 1 $ 442.7 $ 348.5
Profit 84.4 $ 84.4 71.9 $ 71.9
Balance at Sept. 30 $ 527.1 $ 420.4
Accumulated other
comprehensive income:
Balance at January 1 $ (26.6) $ 1.8
Foreign currency
translation adjustment (1.9) (1.9) (19.0) (19.0)
Comprehensive income $ 82.5 $ 52.9
Balance at Sept. 30 $ (28.5) $ (17.2)
Paid-in capital:
Balance at January 1 $ 395.0 $ 345.0
Equity capital from 230.0 30.0
Caterpillar
Balance at Sept. 30 $ 625.0 $ 375.0
Total equity $1,123.6 $ 778.2
Caterpillar Financial Services Corporation
Consolidated Statement Of Cash Flows
(Unaudited)
(Millions of Dollars)
Nine Months Ended
Sept. 30, Sept. 30,
1998 1997
Cash flows from operating activities:
Profit $ 84.4 $ 71.9
Adjustments for non-cash items:
Depreciation 119.6 102.4
Provision for credit losses 51.1 29.1
Other (30.8) (10.8)
Change in assets and liabilities:
Receivables from customers and others ( 83.5) (8.9)
Deferred income taxes (13.9) (5.5)
Payable to dealers and others 6.6 (11.9)
Payable to Caterpillar Inc. - Other 76.5 ( .1)
Accrued interest payable 75.0 38.4
Income taxes payable (61.3) 33.0
Other, net 37.0 (7.4)
Net cash provided by operating activities 260.7 230.2
Cash flows from investing activities:
Additions to property and equipment (236.1) (215.1)
Disposals of equipment 75.7 89.9
Additions to finance receivables (10,932.9) (4,900.1)
Collections of finance receivables 6,407.4 2,453.8
Proceeds from sales of receivables 1,332.3 1,118.8
Other, net 1.0 (1.1)
Net cash used for investing activities (3,352.6) (1,453.8)
Cash flows from financing activities:
Equity capital from Caterpillar 230.0 30.0
Payable to Caterpillar Inc. - borrowings, net (194.6) 50.0
Proceeds from long-term debt 3,601.1 1,819.0
Payments on long-term debt (788.8) (771.0)
Short-term borrowings, net 271.7 96.1
Net cash provided by financing activities 3,119.4 1,224.1
Effect of exchange rate changes on cash and
cash equivalents (6.3) 2.8
Net change in cash and cash equivalents 21.2 3.3
Cash and cash equivalents at beginning of period 41.5 27.0
Cash and cash equivalents at end of period $ 62.7 $ 30.3
Supplemental cashflow information:
Cash paid for interest $ 317.7 $ 230.5
Item 2. Management's Discussion and Analysis of Results of
Operations and Financial Condition
THREE MONTHS ENDED SEPTEMBER 30, 1998 VS. THREE MONTHS ENDED
SEPTEMBER 30, 1997
REVENUES
Total revenues for the third quarter of 1998 were a record
$283.0 million. The increase of $77.5 million over the same period
last year was primarily the result of continued portfolio growth.
$20.6 million of the increase resulted from the revenue earned on
trade receivables purchased from Caterpillar Inc. ("Caterpillar")
this year.
The annualized interest rate on finance receivables was 8.8%
for the third quarter of 1998 compared with 8.7% for the third
quarter of 1997. The tax benefits of governmental lease purchase
contracts and tax-oriented leases are not included in these
annualized interest rates.
Other revenue of $24.8 million for the third quarter of 1998, an
increase of $11.4 million from the same period last year, included
a $6.9 million gain on sale of receivables related to a
securitization in July (see portfolio), other securitization-
related revenue, fees, and other miscellaneous revenue.
EXPENSES
Interest expense for the third quarter increased $39.1 million
over the same period last year. This increase was primarily the
result of increased borrowings. The average interest rate on
borrowed funds was 6.0% for the third quarter of 1998 as compared
to 5.9% for the third quarter of 1997.
Depreciation expense increased $5.2 million over the third
quarter of 1997 due to new operating lease business. Net equipment
on operating leases increased $76.4 million over the third quarter
of 1997.
General, operating, and administrative expenses increased $5.6
million during the third quarter of 1998 as compared to the same
period last year. This increase is primarily due to staff-related
expenses and other expenses incurred due to increased new business
and geographical expansion. The number of full-time employees
increased to 796 at September 30, 1998, an increase of 136 from
last year's third quarter.
The provision for credit losses increased $6.8 million over the
third quarter of 1997 due to record new business.
PROFIT
Profit for the third quarter of 1998 was $35.2 million, a $12.2
million increase from the third quarter of 1997. This increase is
primarily the result of a larger portfolio, partially offset by a
higher provision for credit losses due to record new business.
PORTFOLIO
The net portfolio balance was $10,417.5 million at September
30, 1998, an increase of $3,029.3 million over the same period last
year.
During the third quarter of 1998, we financed new retail
business transactions totaling $1,422.8 million as compared to
$1,028.0 million during the third quarter of 1997. This increase
resulted primarily from financing an increased percentage of
deliveries of Caterpillar product and a higher average financing
amount per unit.
In July 1998, we securitized $605.7 million of our receivables
consisting of $417.7 million of installment sale contracts and
$188.0 million of finance lease contracts. The proceeds were used
to reduce debt. We recognized a $6.9 million pre-tax gain on this
transaction in the third quarter and will receive fees in future
periods for servicing these sold receivables.
At September 30, 1998, we serviced $1,628.7 million in
receivables sold to others which consist of $600.0 million in
wholesale receivables, under a revolving asset-backed
securitization agreement, $860.0 million of installment sale
contracts, and $168.7 million of finance leases.
In January 1998, we entered into an agreement with Caterpillar
to purchase certain U.S. dealer receivables from Caterpillar at a
discount. Under this agreement, Caterpillar will continue to
service the receivables. On a weekly basis, we use a portion of
the collections from these receivables to purchase more
receivables. At September 30, 1998, the balance of receivables
owned by us and serviced by Caterpillar was $1,074.0 million, which
is classified as wholesale notes receivable.
ALLOWANCE FOR CREDIT LOSSES
The following table shows activity related to the Allowance for
Credit Losses:
Three Months Ended
Sept. 30 Sept. 30
1998 1997
Balance at beginning of quarter $ 114.3 $ 81.2
Provision for credit losses 17.7 10.9
Receivables written off, net of recoveries (26.7) (6.3)
Adjustment for sale of receivables (4.9) -
Foreign currency translation adjustment .5 (.8)
$ 100.9 $ 85.0
The increased write-offs were attributable to losses in
southeast Asia, where the economic outlook remains uncertain. We
do not anticipate any additional material write-offs in the region
in the near term, but we continue to monitor the situation very
closely. Asia represents approximately 2.8% of our portfolio.
Receivables that were past due over 30 days were 1.3% of the
total receivables at September 30, 1998 (1.5% excluding the
$1,074.0 million in trade receivables serviced by Caterpillar), as
compared to 1.6% at September 30, 1997. We will continue to
monitor the allowance for credit losses to provide for an amount we
believe is adequate, after considering the value of any collateral,
to cover uncollectible receivables.
NINE MONTHS ENDED SEPTEMBER 30, 1998 VS. NINE MONTHS ENDED
SEPTEMBER 30, 1997
REVENUES
Total revenues for the first nine months of 1998 were a record
$760.4 million. The increase of $182.5 million over the same
period last year was primarily the result of continued portfolio
growth.
The annualized interest rate on finance receivables was 8.8% for
the first nine months of 1998 compared with 8.7% for the first nine
months of 1997. The tax benefits of governmental lease purchase
contracts and tax-oriented leases are not included in these
annualized interest rates.
Other revenue of $56.6 million for the first nine months of 1998
included a $6.9 million gain on sale of receivables, securitization-
related revenue, fees, and other miscellaneous revenue.
EXPENSES
Interest expense for the first nine months increased $102.4
million over the same period last year. This increase was
primarily the result of increased borrowings. The average interest
rate on borrowed funds was 5.9% for the first nine months of both
1998 and 1997.
Depreciation expense increased $17.2 million over the first
nine months of 1997 due to new operating lease business.
General, operating, and administrative expenses increased $18.0
million during the first nine months of 1998 as compared to the
same period last year. This increase is primarily due to staff-
related expenses and other expenses incurred due to increased new
business and geographical expansion.
The provision for credit losses increased $22.0 million over the
first nine months of 1997 due to record new business.
PROFIT
Profit for the first nine months of 1998 was $84.4 million, a
$12.5 million increase from the first nine months of 1997. Profit
was significantly impacted by the additional provision for credit
losses taken as a result of record new business.
PORTFOLIO
During the first nine months of 1998, we financed new retail
business transactions totaling $4,329.3 million as compared to
$3,000.7 million during the first nine months of 1997. This
increase resulted primarily from financing an increased percentage
of deliveries of Caterpillar product and a higher average cost per
unit.
ALLOWANCE FOR CREDIT LOSSES
The following table shows activity related to the Allowance for
Credit Losses:
Nine Months Ended
Sept. 30 Sept. 30
1998 1997
Balance at beginning of year $ 83.5 $ 74.4
Provision for credit losses 51.1 29.1
Receivables written off, net of recoveries (28.4) (12.6)
Adjustments for sale of receivables (4.9) (3.6)
Foreign currency translation adjustment (.4) (2.3)
$ 100.9 $ 85.0
The increased write-offs were primarily attributable to losses
in southeast Asia, where the economic outlook remains uncertain.
We do not anticipate any additional material write-offs in the
region in the near term, but we continue to monitor the situation
very closely.
CAPITAL RESOURCES AND LIQUIDITY
Operations for the first nine months of 1998 were funded with a
combination of bank borrowings, commercial paper, equity capital
invested by Caterpillar Inc., medium-term notes, retained earnings,
and the sale of receivables.
At September 30, 1998, we had the following credit lines available:
Short-term credit lines from banks. These credit lines total
$549.5 million and will be eligible for renewal at various dates
throughout the next twelve months. They are used for bank
borrowings and as support for our outstanding commercial paper
and commercial paper guarantees. At September 30, 1998, we had
$160.9 million outstanding against these credit lines.
Variable amount lending agreements with Caterpillar. Under these
agreements, we may borrow up to $829.4 million from Caterpillar,
and Caterpillar may borrow up to $544.7 million from us. The
agreements are in effect for indefinite periods of time and may
be changed or terminated by either party with 30 days' notice.
We had borrowings of $44.6 million outstanding at September 30,
1998, $200.0 million at September 30, 1997, and $243.5 million at
December 31, 1997, but had no loans receivable under these
agreements.
Two syndicated revolving credit lines. The two revolving credit
lines totaling $2,500.0 million are shared with Caterpillar with
the following allocation:
Five-year 364-day Total
Facility Facility
Caterpillar $ 187.5 $ 62.5 $ 250.0
Caterpillar Financial
Sercives Corp. 1,687.5 562.5 2,250.0
Total $ 1,875.0 $ 625.0 $ 2,500.0
The five year facility expires on Oct. 5, 2002, the 364 day
facility expires on Oct. 5, 1999.
On October 6, 1998, the 364-day facility was amended to total
$1,025.0 million of which $102.5 million is allocated to
Caterpillar and $922.5 million to us. We can request a change to
this distribution to maintain the required amount of support for
our outstanding commercial paper and guarantees of commercial
paper. At September 30, 1998, there were no borrowings under
these lines.
European revolving credit line. This $1.0 billion credit line,
which expires May 1, 2003, supports our Euro-commercial paper and
certificate of deposit program. Under this program, commercial
paper and certificates of deposit are issued by us or by our
Irish subsidiaries with our guarantee. At September 30, 1998,
there were no borrowings under this credit line.
Total outstanding borrowings at September 30, 1998 were
$9,192.2 million, an increase of $2,855.1 million over December 31,
1997. Outstanding borrowings primarily include:
$6,137.6 million of medium-term notes
$2,754.1 million of commercial paper
$160.9 million of bank borrowings
Caterpillar contributed an additional $100.0 million of equity
capital in January, $50.0 million in May, and an additional $80.0
million in August. Our debt-to-equity ratio at September 30, 1998
was 8.2 to 1 as compared to 7.8 to 1 at December 31, 1997, and 8.3
to 1 at September 30, 1997. Changes in this ratio are due to
seasonal activity. We are in compliance with the requirements of
the debt covenant covering our revolving credit facilities.
DERIVATIVES
We use interest rate derivative financial instruments and
currency derivative financial instruments to manage interest rate
and foreign currency exchange risks that we may encounter as a part
of our normal business. We do not use these instruments for
trading purposes.
Interest rate derivatives. We use interest rate swap agreements to
manage the risk of changes in interest rates, allowing us to gain
competitive and economic advantages by minimizing funding costs
regardless of the direction interest rates move. At September 30,
1998, we had interest rate swap contracts outstanding with
notional amounts totaling $2,385.1 million and terms up to five
years. These contracts change:
$1,514.0 million of floating rate debt to fixed rate debt
$667.5 million of fixed rate debt to floating rate debt
$203.6 million of floating rate debt to floating rate debt
having different characteristics
Foreign currency derivatives. We use foreign exchange contracts to
minimize potential risk of fluctuating exchange rates. These
contracts have terms that generally range up to three months. At
September 30, 1998, we had foreign exchange contracts totaling
$1,200.1 million, $3.9 million of which were with Caterpillar.
They hedge foreign currency denominated receivables and debt of
international subsidiaries.
NEW ACCOUNTING STANDARD
In June 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 133, "Accounting
for Derivative Instruments and Hedging Activities." This Statement
requires that an entity recognize all derivatives as either assets
or liabilities in the statement of financial position and measure
those instruments at fair value. We will be required to adopt this
new accounting standard by January 1, 2000. We do not anticipate
early adoption. Due to the recent release and complexity of this
new standard, we have not completed an assessment of the impact it
will have on our financial position or results of operations.
YEAR 2000 READINESS
The Year 2000 ("Y2K") issue relates to the inability of
computer applications to distinguish between years with the same
last two digits in different centuries such as 1900 and 2000. In
1997, we began to evaluate this ability in the systems we use. At
that time, we evaluated our exposure in key internal systems, key
external systems, and non-critical systems. During 1998, we have
continued to increase our preparedness or "compliance" in each
area.
Our key internal systems include software and hardware used to
track our contract, customer and financial information as well as
internal communications and quoting software. Most of these
systems are currently Y2K compliant. The loss of systems which are
not currently compliant would cause only minor business disruption
as we would be performing some tasks manually rather than
electronically such as manually retrieving documents rather than
accessing an imaged document via computer.
Our key external systems include utilities, banking, and
facility control hardware and software. In these areas, we have
contacted our key business partners and asked them to certify their
compliance. In situations where they are not compliant, we have
closely monitored their plans to implement the changes necessary to
become compliant. If these business partners do not become
compliant, it could have a significant negative impact on our
ability to operate. However, in most cases, we have multiple
suppliers which could mitigate the adverse impact on the company.
We have developed contingency plans that would allow at least a
minimal level of operation to continue in the event that certain
key suppliers, such as electric power or data communication
systems, do not become compliant by 2000.
Our non-critical systems include business software used in non-
critical functions such as spreadsheets used to report information
which could be manually reported and office support machines which
are not vital to daily operations. If these items failed to become
compliant, they would cause minimal disruption to particular
offices as manual work increased.
Our target is to have our critical internal systems Y2K
compliant by December 31, 1998. We estimate the cost incurred to
become Y2K compliant will be less than $1.0 million and will not
have a material impact on our financial position or results of
operations. We will also continue to communicate with our key
business partners to assess their level of compliance and adjust
our contingency plans as needed.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit No. Description
12 Statement setting forth computation of Ratio of
Profit to Fixed Charges
27 Financial Data Schedule
(b) Reports on Form 8-K
Signatures
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Caterpillar Financial Services Corporation
(Registrant)
Date: October 29,1998 By: /s/K.C. Springer
K.C. Springer,
Controller and Principal
Accounting Officer
Date: October 29,1998 By: /s/J.S. Beard
J.S. Beard,
President
EXHIBIT 12
CATERPILLAR FINANCIAL SERVICES CORPORATION
COMPUTATION OF RATIO OF PROFIT TO FIXED CHARGES
(Unaudited)
(Millions of Dollars)
Three Months Nine Months
Ended Ended
Sept. 30, Sept.30, Sept.30, Sept.30,
1998 1997 1998 1997
Profit $ 35.2 $ 23.0 $ 84.4 $ 71.9
Add:
Provision for income taxes 21.5 13.2 50.0 40.2
Deduct:
Equity in profit of partnerships (.6) (.6) (2.8) (1.9)
Profit before taxes $ 56.1 $ 35.6 $131.6 $110.2
Fixed charges:
Interest on borrowed funds $135.7 $96.6 $366.3 $263.9
Rentals at computed interest* 1.0 1.0 2.9 2.3
Total fixed charges $136.7 $ 97.6 $369.2 $266.2
Profit before taxes plus fixed
charges $192.8 $133.2 $500.8 $376.4
Ratio of profit before taxes
plus fixed charges to fixed charges 1.41 1.36 1.36 1.41
*Those portions of rent expense that are representative of interest
cost.
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<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from our third
quarter 1998 10-Q and is qualified in its entirety by reference to such
financial statements.
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<MULTIPLIER> 1000000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 63
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<ALLOWANCES> 101
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<PP&E> 974
<DEPRECIATION> 328
<TOTAL-ASSETS> 10724
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<BONDS> 6175
0
0
<COMMON> 625
<OTHER-SE> 499
<TOTAL-LIABILITY-AND-EQUITY> 10724
<SALES> 0
<TOTAL-REVENUES> 760
<CGS> 0
<TOTAL-COSTS> 207
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<INCOME-TAX> 50
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<F1>We are a captive finance subsidiary which does not have a classified balance
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