<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event) March 16, 1999
ASSOCIATES CORPORATION OF NORTH AMERICA
(Exact name of registrant as specified in its charter)
DELAWARE 74-1494554
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification Number)
1-6154
(Commission File Number)
250 E. Carpenter Freeway, Irving, Texas 75062-2729
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (972) 652-4000
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Item 5. Other Events.
On March 16, 1999, Associates Corporation of North America (the "Company")
publicly released a 1998 annual supplement containing financial
information and key data as of and for the years ended December 31, 1994
through December 31, 1998. A copy of the schedule is attached as an
Exhibit hereto and incorporated by reference herein. This information
should be read in conjunction with the Company's financial statements for
the relevant periods.
Item 7. Financial Statements and Exhibit
( c ) Exhibit
20 1998 Annual Supplement of Associates Corporation of North
America.
SIGNATURE
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 hereunto duly authorized.
ASSOCIATES CORPORATION OF NORTH AMERICA
By:/s/ John F. Stillo
Senior Vice President and Comptroller
Date: March 16, 1999
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Exhibit 20
1998 Annual Supplement - Associates Corporation of North America
<TABLE>
<CAPTION>
Summary of Key Data
(Dollar Amounts in Millions)
Year Ended or at December 31 1994 1995 1996 1997 1998
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
NET FINANCE RECEIVABLES $30,975.7 $36,368.3 $41,778.9 $47,854.5 $46,038.5
% of Average Net Finance Receivables
Net Interest Margin 8.24% 8.39% 8.53% 8.53% 6.59%
Net Credit Losses 1.60 1.66 2.02 2.43 1.94
Allowance for losses $932.4 $1,109.2 $1,371.4 $1,661.9 $1,378.9
-% of Net Finance Receivables 3.01% 3.05% 3.28% 3.47% 3.00%
Loss Coverage Ratio 2.04x 1.99x 1.72x 1.50x 1.76x
Portfolio Mix
% Secured Finance Receivables 74.1% 74.2% 72.9% 70.2% 82.7%
% Unsecured Finance Recs. 25.9 25.8 27.1 29.8 17.3
Efficiency Ratio 43.6 43.4 41.4 41.3 40.4
Net Income $603.5 $708.1 $823.1 $902.5 $952.0
Return on Average Equity 17.10% 17.21% 17.06% 16.32% 14.65%
Return on Average Assets 2.04 2.06 2.03 1.93 1.78
Fixed Charge Coverage Ratio 1.64x 1.56x 1.59x 1.56x 1.53x
Debt-to-Equity 7.1:1 7.1:1 7.1:1 7.1:1 7.1:1
/TABLE
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<TABLE>
Five Year Financial Trends - Earnings Information
(Dollar Amounts in Millions)
<CAPTION>
Year Ended December 31 1994 1995 1996 1997 1998
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
REVENUES
Finance Charges $3,866.7 $4,805.3 $5,580.3 $6,428.5 $5,841.5
Insurance Premiums 293.5 325.1 354.8 370.1 383.9
Investment and Other Income 227.7 254.0 286.3 352.5 873.9
------- ------- ------- ------- -------
4,387.9 5,384.4 6,221.4 7,151.1 7,099.3
EXPENSES
Interest Expense 1,509.7 1,979.8 2,206.7 2,543.9 2,842.2
Operating Expense 1,191.6 1,417.8 1,603.3 1,842.5 1,660.7
Provision for Losses 569.9 729.7 963.4 1,195.6 949.4
Insurance Benefits
Paid or Provided 144.1 135.7 142.9 142.1 144.0
------- ------- ------- ------- -------
3,415.3 4,263.0 4,916.3 5,724.1 5,596.3
------- ------- ------- ------- -------
Earnings Before
Provision for Taxes 972.6 1,121.4 1,305.1 1,427.0 1,503.0
Provision for Income Taxes 369.1 413.3 482.0 524.5 551.0
------- ------- ------- ------- -------
Net Earnings $603.5 $708.1 $823.1 $902.5 $952.0
======= ======= ======= ======= =======
/TABLE
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<TABLE>
Five Year Financial Trends - Balance Sheet Information
(Dollar Amounts in Millions)
<CAPTION>
December 31 1994 1995 1996 1997 1998
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and Cash Equivalents $361.1 $309.2 $278.4 $294.8 $2,619.7
Investments in Debt
and Equity Securities 609.5 884.7 1,044.4 1,153.5 1,865.9
Net Finance Receivables 30,975.7 36,368.3 41,778.9 47,854.5 46,038.5
Allowance for Losses (932.4) (1,109.2) (1,371.4) (1,661.9) (1,378.9)
Insurance Policy and
Claims Reserves (545.6) (602.8) (693.0) (762.4) (763.8)
Amounts Due from Related Parties 385.8 256.3 341.0 2,331.0 6,563.9
Other Assets 833.1 917.2 1,219.8 1,321.6 1,632.0
-------- -------- -------- -------- --------
Total Assets $31,687.2 $37,023.7 $42,598.1 $50,531.1 $56,577.3
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes Payable:
Commercial Paper $11,640.5 $12,732.7 $14,712.6 $17,184.5 $15,357.2
Bank Loans 571.4 702.0 1,001.8 1,202.1 1,070.7
Accounts Payable and Accruals 726.0 833.5 980.6 960.4 1,187.7
Long-Term Debt:
Senior Notes 14,821.4 18,169.7 20,391.4 24,710.0 31,780.2
Subordinated and Capital Notes 141.8 141.8 425.5 425.4 425.3
-------- -------- -------- -------- --------
14,963.2 18,311.5 20,816.9 25,135.4 32,205.5
Stockholders' Equity 3,786.1 4,444.0 5,086.2 6,048.7 6,756.2
-------- -------- -------- -------- --------
Total Liabilities and
Stockholders' Equity $31,687.2 $37,023.7 $42,598.1 $50,531.1 $56,577.3
======== ======== ======== ======== ========
/TABLE
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<TABLE>
Five Year Financial Trends - Net Finance Receivables
(Dollar Amounts in Millions)
<CAPTION>
Year Ended or at December 31 1994 1995 1996 1997 1998
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET FINANCE RECEIVABLES OUTSTANDING
Home Equity Lending $11,455.2 $13,190.4 $15,435.9 $17,437.3 $20,435.8
Truck and Truck Trailer 6,553.0 7,415.7 8,077.6 9,011.1 10,038.0
Personal Lending/Retail
Sales Finance 4,188.9 4,752.7 5,786.5 6,920.6 6,566.2
Equipment 2,909.3 3,729.1 4,261.4 4,899.8 4,882.1
Auto Fleet Leasing 299.4 327.1 1,087.4 1,418.9 1,471.4
Credit Card 3,834.6 4,616.8 5,517.1 7,333.6 1,398.0
Manufactured Housing 1,681.1 2,049.3 1,257.6 24.1 20.7
Warehouse Lending and Other 54.2 287.2 355.4 809.1 1,226.3
-------- -------- -------- -------- --------
Total $30,975.7 $36,368.3 $41,778.9 $47,854.5 $46,038.5
======== ======== ======== ======== ========
Home Equity Lending
Average account balance $39,866 $40,527 $42,513 $44,731 $46,336
Number of Accounts 287,343 325,470 363,089 389,827 441,034
Truck and Truck Trailer
Retail and Leasing Receivables
Average account balance $36,253 $37,067 $38,638 $38,616 $40,429
Number of accounts 161,029 172,826 188,815 211,000 224,198
Wholesale Receivables
Average balance per dealer $1,021,429 $1,442,143 $1,117,283 $1,214,065 $1,231,240
Personal Lending/Retail Sales Finance
Average Account Balance $2,095 $2,085 $2,161 $2,312 $2,363
Number of Accounts 1,999,316 2,279,006 2,677,735 2,993,929 2,778,335
Equipment
Retail and Leasing Receivables
Average account balance $21,425 $24,795 $26,897 $28,228 $29,460
Number of accounts 110,691 124,121 134,207 147,468 139,250
Wholesale Receivables
Average balance per dealer $597,444 $723,889 $611,284 $653,457 $904,703
</TABLE>
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<TABLE>
Five Year Financial Trends - Funding and Capital
(Dollar Amounts in Millions)
<CAPTION>
Year Ended or at December 31 1994 1995 1996 1997 1998
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
DEBT
Short-Term:
Commercial Paper $11,640.5 $12,732.7 $14,712.6 $17,184.5 $15,357.2
Bank Loans 571.4 702.0 1,001.8 1,202.1 1,070.7
--------- --------- --------- --------- ---------
Total 12,211.9 13,434.7 15,714.4 18,386.6 16,427.9
Long-Term: (1)
Senior 14,821.4 18,169.7 20,391.4 24,710.0 31,780.2
Subordinated 141.8 141.8 425.5 425.4 425.3
--------- --------- --------- --------- ---------
Total 14,963.2 18,311.5 20,816.9 25,135.4 32,205.5
--------- --------- --------- --------- ---------
TOTAL DEBT $27,175.1 $31,746.2 $36,531.3 $43,522.0 $48,633.4
========= ========= ========= ========= =========
CREDIT FACILITIES OUTSTANDING $ 9,239.2 $10,339.7 $12,408.2 $14,915.9 $18,073.1
MATURITIES
Due in Less than 1 Year $14,185.1 $16,046.1 $18,794.9 $22,577.1 $22,975.9
Due in 1-2 Years 2,544.2 3,080.5 3,654.3 5,198.0 3,679.2
Due in 2+ Years 10,445.8 12,619.6 14,082.1 15,746.9 21,978.3
--------- --------- --------- --------- ---------
Total $27,175.1 $31,746.2 $36,531.3 $43,522.0 $48,633.4
TERM DEBT PLACEMENTS
U.S. Domestic Underwritten 2,400.0 3,700.0 3,350.0 4,900.0 4,625.0
Global Underwritten 4,800.0
International Underwritten 900.0 1,823.0 828.0
Medium Term Notes and Other 1,528.0 1,449.0 877.0 637.0 1,000.0
--------- --------- --------- --------- ---------
Total $3,928.0 $5,149.0 $5,127.0 $7,360.0 $11,253.0
========= ========= ========= ========= =========
</TABLE>
