<PAGE> 1
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) May 3, 2000
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 May 3, 2000, Associates Corporation of North America (the "Company") publicly
released a 1999 annual supplement containing financial information and key data
as of and for the years ended December 31, 1995 through December 31, 1999. 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 - 1999 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
-----------------------------------------
Executive Vice President and Comptroller
Date: May 3, 2000
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INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
20 1999 Annual Supplement of Associates Corporation of North America.
</TABLE>
<PAGE> 1
EXHIBIT 20
ASSOCIATES CORPORATION OF NORTH AMERICA
1999 Annual Supplement - Associates Corporation of North America
Summary of Key Data
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
Year Ended or at December 31 1995 1996 1997 1998 1999
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET FINANCE RECEIVABLES $ 36,368.3 $ 41,778.9 $ 47,854.5 $ 46,038.5 $ 49,766.7
% of Average Net Finance Receivables
Net Interest Margin 8.39% 8.53% 8.51% 6.54% 5.97%
Net Credit Losses 1.66 2.02 2.43 1.94 1.83
Allowance for losses $ 1,109.2 $ 1,371.4 $ 1,661.9 $ 1,378.9 1,408.4
% of Net Finance Receivables 3.05% 3.28% 3.47% 3.00% 2.83%
Loss Coverage Ratio 1.99x 1.72x 1.50x 1.76x 1.61x
Portfolio Mix
% Secured Finance Receivables 74.2% 72.9% 70.2% 82.7% 84.0%
% Unsecured Finance Recs. 25.8 27.1 29.8 17.3 16.0
Efficiency Ratio 43.4 41.4 41.3 40.1 39.9
Net Income $ 708.1 $ 821.4 $ 898.1 $ 974.2 $ 1,104.5
Return on Average Equity 16.80% 16.75% 16.05% 14.99% 12.35%
Return on Average Assets 2.06 2.02 1.92 1.77 1.78
Fixed Charge Coverage Ratio 1.56 1.59 1.55 1.53 1.58
Debt-to-Equity 6.9:1 7.1:1 7.1:1 7.1:1 5.3:1
</TABLE>
<PAGE> 2
Five Year Financial Trends - Earnings Information
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
Year Ended December 31 1995 1996 1997 1998 1999
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
REVENUES
Finance Charges $ 4,805.3 $ 5,580.3 $ 6,428.5 $ 5,841.5 $ 5,911.2
Insurance Premiums 325.1 354.8 370.1 383.9 371.3
Investment and Other Income 254.0 286.3 352.5 931.4 1,246.3
---------- ---------- ---------- ---------- ----------
5,384.4 6,221.4 7,151.1 7,156.8 7,528.8
EXPENSES
Interest Expense 1,979.8 2,209.4 2,550.8 2,862.8 2,948.0
Operating Expense 1,417.8 1,603.3 1,842.5 1,663.4 1,768.8
Provision for Losses 729.7 963.4 1,195.6 949.4 943.2
Insurance Benefits
Paid or Provided 135.7 142.9 142.1 144.0 148.4
---------- ---------- ---------- ---------- ----------
4,263.0 4,919.0 5,731.0 5,619.6 5,808.4
---------- ---------- ---------- ---------- ----------
Earnings Before
Provision for Taxes 1,121.4 1,302.4 1,420.1 1,537.2 1,720.4
Provision for Income Taxes 413.3 481.0 522.0 563.0 615.9
---------- ---------- ---------- ---------- ----------
Net Earnings $ 708.1 $ 821.4 $ 898.1 $ 974.2 $ 1,104.5
========== ========== ========== ========== ==========
</TABLE>
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Five Year Financial Trends - Balance Sheet Information
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
December 31 1995 1996 1997 1998 1999
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and Cash Equivalents $ 409.2 $ 378.4 $ 394.8 $ 2,720.4 $ 333.3
Investments in Debt
and Equity Securities 884.7 1,044.4 1,153.5 1,865.9 2,666.9
Net Finance Receivables 36,368.3 41,778.9 47,854.5 46,038.5 49,766.7
Allowance for Losses (1,109.2) (1,371.4) (1,661.9) (1,378.9) (1,408.4)
Insurance Policy and
Claims Reserves (602.8) (693.0) (762.4) (763.8) (840.8)
Amounts Due from Related Parties 238.4 374.5 2,360.3 9,564.8 5,975.4
Other Assets 935.2 1,219.8 1,321.6 1,652.7 3,687.0
------------ ------------ ------------ ------------ ------------
Total Assets $ 37,123.8 $ 42,731.6 $ 50,660.4 $ 59,699.6 $ 60,180.1
============ ============ ============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes Payable:
Commercial Paper $ 12,732.7 $ 14,712.6 $ 17,184.5 $ 17,157.2 $ 13,672.9
Bank Loans 702.0 1,001.8 1,202.1 1,070.7 990.7
Accounts Payable and Accruals 833.6 982.3 962.4 1,851.1 1,398.9
Long-Term Debt:
Senior Notes 18,169.7 20,491.4 24,810.0 32,380.2 34,413.1
Subordinated and Capital Notes 141.8 425.5 425.4 425.3 425.2
------------ ------------ ------------ ------------ ------------
18,311.5 20,916.9 25,235.4 32,805.5 34,838.3
Stockholders' Equity 4,544.0 5,118.0 6,076.0 6,815.1 9,279.3
------------ ------------ ------------ ------------ ------------
Total Liabilities and
Stockholders' Equity $ 37,123.8 $ 42,731.6 $ 50,660.4 $ 59,699.6 $ 60,180.1
============ ============ ============ ============ ============
</TABLE>
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Five Year Financial Trends - Net Finance Receivables
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
Year Ended or at December 31 1995 1996 1997 1998 1999
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
NET FINANCE RECEIVABLES OUTSTANDING
Home Equity Lending $ 13,190.4 $ 15,435.9 $ 17,437.3 $ 20,435.8 $ 21,800.3
Truck and Truck Trailer 7,415.7 8,077.6 9,011.1 10,038.0 11,832.7
Personal Lending/Retail
Sales Finance 4,752.7 5,786.5 6,920.6 6,566.2 7,905.2
Equipment 3,729.1 4,261.4 4,899.8 4,882.1 5,398.2
Auto Fleet Leasing 327.1 1,087.4 1,418.9 1,471.4 1,509.5
Credit Card 4,616.8 5,517.1 7,333.6 1,398.0 54.6
Manufactured Housing 2,049.3 1,257.6 24.1 20.7 23.7
Warehouse Lending and Other 287.2 355.4 809.1 1,226.3 1,242.5
---------- ---------- ---------- ---------- ----------
Total $ 36,368.3 $ 41,778.9 $ 47,854.5 $ 46,038.5 $ 49,766.7
========== ========== ========== ========== ==========
Home Equity Lending
Average account balance $ 40,527 $ 42,513 $ 44,731 $ 46,336 $ 46,555
Number of Accounts 325,470 363,089 389,827 441,034 468,266
Truck and Truck Trailer
Retail and Leasing Receivables
Average account balance $ 37,067 $ 38,638 $ 38,616 $ 40,429 $ 44,847
Number of accounts 172,826 188,815 211,000 224,198 228,211
Wholesale Receivables
Average balance per dealer $1,442,143 $1,117,283 $1,214,065 $1,231,240 $1,716,463
Personal Lending/Retail Sales Finance
Average Account Balance $ 2,085 $ 2,161 $ 2,312 $ 2,363 $ 2,933
Number of Accounts 2,279,006 2,677,735 2,993,929 2,778,335 2,695,609
Equipment
Retail and Leasing Receivables
Average account balance $ 24,795 $ 26,897 $ 28,228 $ 29,460 $ 30,215
Number of accounts 124,121 134,207 147,468 139,250 152,000
Wholesale Receivables
Average balance per dealer $ 723,889 $ 611,284 $ 653,457 $ 700,702 $ 702,900
</TABLE>
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Five Year Financial Trends - Funding and Capital
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
Year Ended or at December 31 1995 1996 1997 1998 1999
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
DEBT
Short-Term:
Commercial Paper $ 12,732.8 $ 14,712.6 $ 17,184.4 $ 17,157.2 $ 13,672.9
Bank Loans 702.0 1,001.8 1,202.1 1,070.7 990.7
------------ ------------ ------------ ------------ ------------
Total 13,434.8 15,714.4 18,386.5 18,227.9 14,663.6
Long-Term:
Senior 18,169.7 20,491.4 24,810.0 32,380.2 34,413.1
Subordinated 141.8 425.5 425.4 425.3 425.2
------------ ------------ ------------ ------------ ------------
Total 18,311.5 20,916.9 25,235.4 32,805.5 34,838.3
------------ ------------ ------------ ------------ ------------
TOTAL DEBT $ 31,746.3 $ 36,631.3 $ 43,622.0 $ 51,033.4 $ 49,501.9
============ ============ ============ ============ ============
CREDIT FACILITIES OUTSTANDING $ 10,339.7 $ 12,408.2 $ 14,915.9 $ 18,073.1 $ 12,227.8
MATURITIES
Due in Less than 1 Year $ 16,046.2 $ 18,794.9 $ 22,577.1 $ 24,825.9 $ 21,330.5
Due in 1-2 Years 3,080.5 3,654.3 5,248.0 3,679.2 5,979.0
Due in 2+ Years 12,619.6 14,182.1 15,796.9 22,528.3 22,192.4
------------ ------------ ------------ ------------ ------------
Total $ 31,746.3 $ 36,631.3 $ 43,622.0 $ 51,033.4 $ 49,501.9
============ ============ ============ ============ ============
TERM DEBT PLACEMENTS
U.S. Domestic Underwritten $ 3,700.0 $ 3,450.0 $ 4,900.0 $ 4,625.0 $ 6,065.0
Global Underwritten 4,800.0 1,500.0
International Underwritten 900.0 1,823.0 828.0 --
Medium Term Notes and Other 1,449.0 877.0 637.0 1,575.0 1,151.0
------------ ------------ ------------ ------------ ------------
Total $ 5,149.0 $ 5,227.0 $ 7,360.0 $ 11,828.0 $ 8,716.0
============ ============ ============ ============ ============
</TABLE>
