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<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 2, 2000
ASSOCIATES FIRST CAPITAL CORPORATION
(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
<PAGE> 2
Item 5. Other Events.
On May 2, 2000, Associates First Capital Corporation (the "Company") publicly
released a 1999 annual report 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 Exhibits
( c ) Exhibits
20- 1999 Annual Report Supplement of Associates First Capital
Corporation.
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 FIRST CAPITAL CORPORATION
By: /s/ JOHN F. STILLO
Executive Vice President, Comptroller and
Principal Accounting Officer
Date: May 2, 2000
<PAGE> 3
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------ -----------
<S> <C>
20 1999 Annual Report Supplement of Associates First Capital
Corporation.
</TABLE>
<PAGE> 1
EXHIBIT 20
-----------------
Annual Supplement
-----------------
1999
Associates First Capital Corporation
<PAGE> 2
statement from the chairman
- --------------------------------------------------------------------------------
Associates First Capital Corporation in 1999 celebrated 25 consecutive years of
earnings improvement. This 1999 Annual Report Supplement contains detailed
information about the performance of each of our business lines.
Our partnerships with customers, employees, investors and communities have
helped us achieve our successful results. And we are well-positioned to continue
profitable growth in the future.
/s/ KEITH W. HUGHES
Keith W. Hughes
Chairman and Chief Executive Officer
Associates First Capital Corporation
<PAGE> 3
CONTENTS
- --------------------------------------------------------------------------------
KEY DATA
1 Financial Highlights
3 Key Products
5 Summary of Key Business Segment Data - Managed Basis
FIVE YEAR FINANCIAL TRENDS
11 Selected Earnings Information - Managed Basis
13 Selected Balance Sheet Information
15 Funding and Capital
17 Managed Receivables
19 Credit Quality - Managed Basis
FIVE YEAR PRODUCT LINE TRENDS
21 Home Equity Receivables
23 Personal Loans/Retail Sales Finance Receivables
25 Credit Card Receivables
27 Truck and Truck Trailer Receivables
29 Equipment Receivables
31 Insurance Statistical Data
EIGHT QUARTER FINANCIAL TRENDS (UNAUDITED)
33 Selected Earnings Information - Managed Basis
35 Selected Balance Sheet Information
37 Managed Receivables
39 Credit Quality - Managed Basis
41 Summary of Information by Country
<PAGE> 4
1
financial highlights
- --------------------------------------------------------------------------------
($ millions - except earnings per share)
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
----------- ----------- ------------ ----------- ------------
NET EARNINGS
<S> <C> <C> <C> <C> <C>
Amount $ 1,490.4 $ 1,223.5 $ 1,031.7 $ 857.0 $ 723.1
Growth rate 22% 19% 20% 19% 20%
Return on average equity 16.28 17.94 17.78 18.31 15.66
Return on average adjusted equity (1) 18.03 20.30 21.10 22.86 20.26
Return on average assets 1.78 1.90 1.95 1.89 1.89
Return on average managed assets 1.66 1.78 1.86 1.89 1.89
NET EARNINGS PER DILUTED SHARE (2) $ 2.04 $ 1.75 $ 1.48 $ 1.23 $ 1.04
MANAGED RECEIVABLES - AS REPORTED $ 84,414.7 $ 71,364.3 $ 58,406.5 $ 48,622.8 $ 39,702.5
Growth rate 18% 22% 20% 22% 18%
MANAGED RECEIVABLES - ONGOING (3) $ 78,919.9 $ 64,133.9 $ 53,214.2 $ 44,759.7 $ 37,653.2
Growth rate 23% 21% 19% 19% 18%
TOTAL MANAGED ASSETS $ 95,088.0 $ 80,878.3 $ 60,154.8 $ 50,378.3 $ 41,303.9
Growth rate 18% 34% 19% 22% 17%
KEY DATA (MANAGED)
TOTAL REVENUE $ 13,251.0 $ 10,029.5 $ 8,470.5 $ 7,160.3 $ 6,107.2
Growth rate 32% 18% 18% 17% 24%
NET INTEREST MARGIN (% AVG. MGD. RECS.) 9.13 8.91 9.06 9.20 9.22
EFFICIENCY RATIO 45.6 43.7 43.5 44.5 46.3
CREDIT QUALITY
60+days contractual delinquency 2.77% 2.57% 2.15% 2.11% 1.71%
Credit loss ratio (% avg. mgd. recs.) 2.80 2.43 2.32 2.00 1.70
BALANCE SHEET INFORMATION
STOCKHOLDERS' EQUITY $ 9,800.5 $ 8,526.5 $ 6,268.6 $ 5,437.5 $ 4,801.1
ALLOWANCE FOR LOSSES 2,174.4 1,978.7 1,949.9 1,563.1 1,268.6
% of net receivables 3.16% 3.25% 3.53% 3.36% 3.20%
Multiple to net losses (4) 1.50x 1.74x 1.59x 1.77x 2.03x
</TABLE>
(1) Excludes push-down goodwill from Ford Motor Company.
(2) Adjusted to give a retroactive recognition to a two-for-one stock split on
December 23, 1998.
(3) In January 2000, the Company announced its decision to discontinue the
origination of manufactured housing finance products. In March 1999, the
Company sold its recreational vehicle finance business. Ongoing receivables
exclude manufactured housing and recreational vehicles.
(4) The multiple to net losses is calculated as a ratio of the allowance for
losses to related trailing or annualized net credit losses on receivables
owned at the end of the period (as adjusted to exclude net credit losses
related to securitized receivables and to reflect the impact of significant
acquisitions).
<PAGE> 5
2
DIVERSIFIED PORTFOLIO CONSISTENT GROWTH
managed receivables managed receivables
--------------------- -------------------
(1999) ($ IN BILLIONS)
[CHART] [CHART]
- --------------------------------------------------------------------------------
BALANCED GROWTH CONSISTENT EARNINGS IMPROVEMENT
managed receivables net income
-------------------- -------------------------------
($ IN MILLIONS)
[CHART] [CHART]
<PAGE> 6
3
key PRODUCTS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
PERSONAL LOANS/
HOME EQUITY RETAIL SALES FINANCE CREDIT CARDS
------------------- ----------------------- ------------------------
<S> <C> <C> <C>
PRODUCTS OFFERED: Installment loans Installment loans Bankcards
o Visa
Lines of credit Revolving credit o MasterCard
First mortgages Auto finance Private label credit cards
Second mortgages Home improvement Auto club services
Credit-related insurance Retail sales finance Point-of-sale network services
o Direct
o Indirect Call-center-based
customer services
Credit-related insurance
Technical help-desk
application services
Credit-related insurance
- -----------------------------------------------------------------------------------------------------------------------------------
DELIVERY: 3,100 branches 3,100 branches Centralized operations
Centralized operations Centralized operations 9 regional service centers
7 regional service centers 82,000 oil and retail outlets
257 direct sales offices
- -----------------------------------------------------------------------------------------------------------------------------------
COUNTRIES: Canada Canada Japan
Costa Rica Costa Rica Taiwan
Hong Kong Hong Kong United Kingdom
Japan India United States
Mexico Japan
Puerto Rico Mexico
Spain Puerto Rico
United Kingdom Spain
United States Sweden
Taiwan
United Kingdom
United States
- -----------------------------------------------------------------------------------------------------------------------------------
MANAGED RECEIVABLES
AT 12/31/99 (1)
(IN MILLIONS) $27,480.3 $16,012.4 $11,733.6
</TABLE>
(1) In January 2000, the Company announced its decision to discontinue the
origination of manufactured housing financing products. At December 31,
1999, manufactured housing had receivables of $5,494.8 million.
<PAGE> 7
4
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
TRUCK AND TRUCK TRAILER EQUIPMENT FLEET LEASING WAREHOUSE
AND OTHER
- -------------------------- -------------------------- -------------------------- ---------------------------
<S> <C> <C> <C>
Retail installment loans Retail installment loans Auto and light truck fleets Lines of credit to
real estate brokers
Leasing Leasing Vehicle management services
o Purchase Government
Dealer financing Dealer financing o Maintenance guaranteed loans
o Wholesale (inventory) o Wholesale (inventory) o Disposal
o Factoring o Factoring Employee relocation services
o Business loans o Business loans o Corporate
o Government
Truck trailer rental Financing for
o Construction equipment Public finance
New and used financing o Material handling
equipment
Credit-related insurance o Golf cars
o Machine tools
Property and casualty insurance o Telecommunications
equipment
Cargo insurance
Credit-related insurance
- -----------------------------------------------------------------------------------------------------------------------------------
43 branches 21 branches Centralized Canada, U.K. Centralized operations and
and U.S. operations regional sales offices
Centralized operations Centralized operations
23 regional truck trailer 19 international offices
rental offices
- -----------------------------------------------------------------------------------------------------------------------------------
Canada Canada Canada Japan
France France United Kingdom United States
Japan Hong Kong United States
Mexico India
Puerto Rico Japan
United Kingdom Mexico
United States Puerto Rico
Spain
United Kingdom
United States
- -----------------------------------------------------------------------------------------------------------------------------------
$13,130.3 $6,977.3 $2,070.1 $1,515.9
</TABLE>
<PAGE> 8
5
summary of key business segment data - managed basis
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
(dollar amounts in millions)
U.S. International Finance Segment
U.S. Consumer -----------------------------------------------------------
Credit Card Finance Commercial United Other Segment Company
at December 31, 1999 Segment Segment Segment Japan Kingdom Canada International Total Total
- ---------------------- ----------- --------- --------- ---------- ---------- -------- -------------- ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES
Home Equity $ $24,101.1 $ $ 1,922.6 $ 463.0 $ 645.6 $ 348.0 $ 3,379.2 $ 27,480.3
Personal Loans/
Retail Sales Finance 7,465.7 5,377.7 740.1 1,619.3 809.6 8,546.7 16,012.4
Truck and Truck Trailer 12,946.5 183.8 183.8 13,130.3
Credit Card 10,928.3 108.0 691.4 5.9 805.3 11,733.6
Equipment 6,181.9 530.3 265.1 795.4 6,977.3
Manufactured Housing 5,494.8 5,494.8
Fleet Leasing 2,070.1 2,070.1
Warehouse and Other 1,255.3 75.4 185.2 260.6 1,515.9
--------- --------- --------- --------- --------- --------- --------- --------- -----------
Total as reported $10,928.3 $31,566.8 $27,948.6 $ 7,483.7 $ 2,424.8 $ 2,264.9 $ 1,797.6 $13,971.0 $ 84,414.7
========= ========= ========= ========= ========= ========= ========= ========= ===========
Total ongoing
operations (1) $10,928.3 $31,566.8 $22,453.8 $ 7,483.7 $ 2,424.8 $ 2,264.9 $ 1,797.6 $13,971.0 $ 78,919.9
========= ========= ========= ========= ========= ========= ========= ========= ===========
</TABLE>
(1) Excludes manufactured housing.
The Company is organized into five primary business units: U.S. credit card,
U.S. consumer branch, U.S. home equity, commercial and international finance.
The U.S. consumer branch and U.S. home equity business units are aggregated into
one reportable U.S. consumer finance segment due to their similar operating
characteristics.
<PAGE> 9
6
- --------------------------------------------------------------------------------
MANAGED RECEIVABLES SEGMENT EARNINGS
------------------- ----------------
[CHART] [CHART]
<PAGE> 10
7
U.S. CREDIT CARD SEGMENT The Company's U.S. credit card segment offers private
label retail credit card and revolving programs and VISA(R) and Mastercard(R)
retail bankcard credit card products to customers throughout the United States.
Various credit-related and other insurance products are also provided, including
credit life, credit accident and health, accidental death and dismemberment,
involuntary unemployment and personal property insurance. In addition, the U.S.
credit card segment provides emergency roadside assistance and auto club
services.
The Company's private label relationships include approximately 38 million oil
and retail customers and approximately 82,000 oil and retail outlets. These
relationships allow the Company to leverage the oil and retail companies' brand
names in order to cross sell related products and services to these customers.
<TABLE>
<CAPTION>
(dollar amounts in millions)
year ended or at December 31 1999 1998 1997
- ------------------------------- ----------- ----------- ----------
<S> <C> <C> <C>
Finance Receivables $ 10,928.3 $ 9,622.0 $ 7,839.3
Total Revenue 2,542.3 1,968.9 1,659.2
Net Interest Margin 1,737.9 1,377.8 1,163.0
- as a % of Average Managed Receivables (AMR) 17.18% 17.27% 15.02%
60+Days Contractual Delinquency 4.21 4.79 3.99
Net Credit Losses as a % of AMR 7.13 7.81 7.41
Segment Earnings $ 441.1 $ 299.8 $ 199.7
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
U.S. CONSUMER FINANCE SEGMENT The Company's U.S. consumer finance segment offers
a variety of consumer finance and insurance products and services to customers
throughout the United States (excluding Hawaii and Puerto Rico, which are
included in the international finance segment). Finance products and services
offered by this segment include home equity loans, personal loans, automobile
financing and retail sales finance. In addition, the Company, through certain
subsidiaries and third parties, makes available various credit-related and other
insurance products to its U.S. consumer finance customers, including credit
life, credit accident and health, involuntary unemployment, personal property
insurance and other non-credit products.
<TABLE>
<CAPTION>
(dollar amounts in millions)
year ended or at December 31 1999 1998 1997
- ------------------------------- ----------- ----------- ----------
<S> <C> <C> <C>
Finance Receivables $ 31,566.8 $ 26,810.5 $ 23,985.0
Total Revenue 4,442.2 3,828.7 3,633.6
Net Interest Margin 2,266.7 2,080.8 2,056.3
- as a % of Average Managed Receivables (AMR) 7.43% 8.14% 9.19%
60+Days Contractual Delinquency 3.77 3.22 2.73
Net Credit Losses as a % of AMR 2.51 2.41 2.30
Segment Earnings $ 688.7 $ 655.9 $ 665.6
</TABLE>
<PAGE> 11
8
U.S CREDIT CARD SEGMENT
MANAGED RECEIVABLES SEGMENT EARNINGS
------------------- ----------------
($ IN BILLIONS) ($ IN MILLIONS)
[CHART] [CHART]
- --------------------------------------------------------------------------------
U.S. CONSUMER FINANCE SEGMENT
MANAGED RECEIVABLES SEGMENT EARNINGS
------------------- ----------------
($ IN BILLIONS) ($ IN MILLIONS)
[CHART] [CHART]
<PAGE> 12
9
COMMERCIAL SEGMENT The Company's commercial segment offers a variety of
commercial finance and insurance products to customers in the United States and
Canada. Finance products and services offered by this segment in the United
States and Canada include retail and wholesale financing and leasing products
and services for heavy-duty (Class 8) and medium duty (Classes 3 through 7)
trucks and truck trailers and construction, material handling and other
industrial and communications equipment. The Company engages in a number of
other commercial activities, including auto fleet leasing and fleet management
services, government guaranteed lending, employee relocation services, truck
trailer rental services, warehouse lending and public finance.
The Company, through certain subsidiaries and third parties, also makes
available various credit-related and other insurance products to its commercial
segment customers and other customers, including commercial auto and dealers'
open lot physical damage, credit life and motor truck cargo insurance, and
commercial and public auto liability insurance. The Company also offers
specialty lines including general liability, directors and officers and errors
and omission insurance, and personal lines including homeowner and recreational
vehicle insurance.
The Company has a centralized warehouse lending operation, which is conducted
through First Collateral Services, Inc. ("FCS"). FCS provides short-term
financing, secured by real estate mortgages, to mortgage companies and other
mortgage lenders.
<TABLE>
<CAPTION>
(dollar amounts in millions)
year ended or at December 31 1999 1998 1997
- ------------------------------- ----------- ----------- ----------
<S> <C> <C> <C>
Finance Receivables $ 27,948.6 $ 26,469.6 $ 22,304.2
Total Revenue 3,285.2 2,591.7 2,152.9
Net Interest Margin 1,028.4 1,008.1 875.7
- as a % of Average Managed Receivables (AMR) 3.91% 4.14% 4.40%
60+Days Contractual Delinquency 1.26 1.21 1.02
Net Credit Losses as a % of AMR 0.93 0.46 0.34
Segment Earnings $ 506.9 $ 510.5 $ 439.7
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
INTERNATIONAL FINANCE SEGMENT The Company's international finance segment offers
a variety of consumer finance products and services to customers in Japan,
Canada, the United Kingdom, Puerto Rico, Sweden, Hong Kong, Spain, India,
Mexico, Taiwan, Ireland and Costa Rica. Commercial financing products are also
offered in the United Kingdom, Hong Kong, Puerto Rico, France, Mexico, Japan,
India and Spain. Commercial finance products offered in Canada are managed by
the Company's commercial segment and are included in the commercial segment
results. The Company, through certain subsidiaries and other third parties, also
offers various credit-related and other insurance products to its customers,
including credit life, credit accident and health, accidental death and
dismemberment, involuntary unemployment and personal property insurance.
<TABLE>
<CAPTION>
(dollar amounts in millions)
year ended or at December 31 1999 1998 1997
- ------------------------------- ----------- ----------- ----------
<S> <C> <C> <C>
Finance Receivables $ 13,971.0 $ 8,462.2 $ 4,278.0
Total Revenue 2,981.3 1,640.2 1,024.8
Net Interest Margin 2,191.4 1,278.1 791.0
- as a % of Average Managed Receivables (AMR) 18.04% 19.36% 20.50%
60+Days Contractual Delinquency 2.60 2.58 1.93
Net Credit Losses as a % of AMR 3.98 3.27 2.44
Segment Earnings $ 740.2 $ 474.3 $ 335.0
</TABLE>
<PAGE> 13
10
COMMERCIAL SEGMENT
MANAGED RECEIVABLES SEGMENT EARNINGS
------------------- ----------------
($ IN BILLIONS) ($ IN MILLIONS)
[CHART] [CHART]
- --------------------------------------------------------------------------------
INTERNATIONAL FINANCE SEGMENT
MANAGED RECEIVABLES SEGMENT EARNINGS
------------------- ----------------
($ IN BILLIONS) ($ IN MILLIONS)
[CHART] [CHART]
<PAGE> 14
11
<TABLE>
<CAPTION>
five year financial trends - selected earnings information - managed basis
- -----------------------------------------------------------------------------------------------------------------------------------
(dollar amounts in millions, except per share amounts)
year ended December 31 1999 1998
Amount % Growth % of AMR Amount % Growth % of AMR
- ----------------------- ----------- -------- --------- ----------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
Finance Charges $ 11,483.0 25% 14.51% $ 9,215.0 18% 14.29%
Insurance Premiums 1,055.7 124 1.33 471.5 12 0.73
Investment and Other Income 712.3 108 0.90 343.0 58 0.53
----------- ----- ----------- -----
13,251.0 32 16.74 10,029.5 18 15.55
EXPENSES
Interest Expense 4,258.6 23 5.38 3,470.2 18 5.38
Operating Expense 3,894.4 39 4.92 2,798.0 20 4.34
Provision for Losses 2,274.1 37 2.87 1,662.7 19 2.58
Insurance Benefits Paid or Provided 447.0 183 0.57 158.1 9 0.24
----------- ----- ----------- -----
10,874.1 34 13.74 8,089.0 18 12.54
----------- ----- ----------- -----
EARNINGS BEFORE PROVISION FOR TAXES 2,376.9 22 3.00 1,940.5 18 3.01
PROVISION FOR INCOME TAXES 886.5 24 1.12 717.0 18 1.11
----------- ----- ----------- -----
NET EARNINGS $ 1,490.4 22% 1.88% $ 1,223.5 19% 1.90%
=========== ===== =========== =====
EPS (DILUTED) (1) $ 2.04 17% $ 1.75 18%
AVERAGE DILUTED
SHARES OUTSTANDING (000) (1) 731,537 699,871
KEY RATIOS
Net Interest Margin (% AMR) 9.13% 8.91%
Efficiency Ratio 45.57 43.71
Effective Tax Rate 37.30 36.95
Return on Average Assets 1.78 1.90
Return on Average Managed Assets 1.66 1.78
Return on Average Equity 16.28 17.94
Return on Average Adjusted Equity (2) 18.03 20.30
Average Managed Receivables (AMR) $ 79,089 $ 64,506
Average Managed Assets 89,575 68,837
Average Equity 9,157 6,822
Average Adjusted Equity (2) 8,390 6,124
</TABLE>
(1) See footnote 1 on page 19 of the Form 10-K for additional information.
(2) Excludes push-down goodwill from Ford Motor Company.
(3) Excludes the effect of the dividend related to the Company's IPO. See page
19 of the Form 10-K for additional information.
<PAGE> 15
12
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995
Amount % Growth % of AMR Amount % Growth % of AMR Amount % Growth % of AMR
----------- -------- -------- ----------- -------- -------- ----------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 7,832.2 19% 14.53% $ 6,578.1 18% 14.81% $ 5,560.8 25% 15.15%
420.7 5 0.78 402.1 8 0.90 370.6 13 1.01
217.6 21 0.41 180.1 2 0.41 175.8 16 0.48
----------- ----- ----------- ----- ----------- -----
8,470.5 18 15.72 7,160.3 17 16.12 6,107.2 24 16.64
2,946.2 17 5.47 2,514.8 15 5.61 2,177.9 31 5.93
2,339.6 17 4.34 2,002.9 14 4.51 1,754.7 21 4.78
1,399.0 28 2.60 1,089.8 31 2.45 834.0 29 2.27
145.7 (2) 0.27 148.2 4 0.34 142.5 (4) 0.39
----------- ----- ----------- ----- ----------- -----
6,830.5 19 12.68 5,755.7 17 12.91 4,909.1 26 13.37
----------- ----- ----------- ----- ----------- -----
1,640.0 17 3.04 1,404.6 17 3.21 1,198.1 18 3.27
608.3 11 1.13 547.6 15 1.23 475.0 15 1.30
----------- ----- ----------- ----- ----------- -----
$ 1,031.7 20% 1.91% $ 857.0 19% 1.98% $ 723.1 20% 1.97%
=========== ===== =========== ===== =========== =====
$ 1.48 20% $ 1.23 18% $ 1.04 --
695,887 694,902 693,309
9.06% 9.20%(3) 9.22%
43.50 44.54 46.34
37.09 38.99 39.64
1.95 1.93(3) 1.89
1.86 1.89(3) 1.89
17.78 17.09(3) 15.66
21.10 20.94(3) 20.26
$ 53,900 $ 44,420 $ 36,694
55,364 46,100 38,294
5,801 5,099 4,619
5,033 4,227 3,679
</TABLE>
<PAGE> 16
13
five year financial trends - selected balance sheet information
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(dollar amounts in millions)
year ended or at December 31 1999 1998 1997 1996 1995
---------------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and Cash Equivalents $ 1,026.3 $ 4,665.6 $ 433.2 $ 446.9 $ 532.2
Investments in Securities 7,176.5 6,678.7 1,242.4 1,097.5 881.1
Net Finance Receivables 68,817.1 60,939.0 55,215.6 46,512.9 39,702.5
Allowance for Losses (2,174.4) (1,978.7) (1,949.9) (1,563.1) (1,268.6)
Insurance Policy Claims and Reserves (985.9) (1,463.9) (783.6) (712.9) (625.4)
Goodwill 3,747.8 1,890.4 1,104.0 1,206.4 1,278.9
Other Assets 5,349.4 4,444.3 1,971.0 1,280.7 803.2
------------- -------------- ------------- ------------- --------------
Total Assets $ 82,956.8 $ 75,175.4 $ 57,232.7 $ 48,268.4 $ 41,303.9
============= ============== ============= ============= ==============
LIABILITIES & STOCKHOLDERS' EQUITY
Notes Payable
Commercial Paper $ 25,991.9 $ 24,144.3 $ 19,483.5 $ 15,907.9 $ 12,902.9
Bank Loans 1,261.5 1,565.5 1,487.1 1,167.3 844.4
Accounts Payable and Accruals 4,498.9 3,342.4 1,765.5 1,726.2 1,382.9
Long-Term Debt (1)
Senior Notes 40,978.8 37,171.4 27,802.6 23,604.0 21,230.8
Subordinated and Capital Notes 425.2 425.3 425.4 425.5 141.8
Stockholders' Equity 9,800.5 8,526.5 6,268.6 5,437.5 4,801.1
------------- -------------- ------------- ------------- --------------
Total Liabilities and
Stockholders' Equity $ 82,956.8 $ 75,175.4 $ 57,232.7 $ 48,268.4 $ 41,303.9
============= ============== ============= ============= ==============
MANAGED RECEIVABLES - as reported $ 84,414.7 $ 71,364.3 $ 58,406.5 $ 48,622.8 $ 39,702.5
MANAGED RECEIVABLES - ongoing (2) 78,919.9 64,133.9 53,214.2 44,759.7 37,653.2
MANAGED ASSETS 95,088.0 80,878.3 60,154.8 50,378.3 41,303.9
ALLOWANCE FOR LOSSES
Beginning Balance $ 1,978.7 $ 1,949.9 $ 1,563.1 $ 1,268.6 $ 1,061.6
Provision for Losses 1,506.4 1,283.5 1,378.1 1,086.5 834.0
Losses Sustained (1,717.1) (1,424.6) (1,454.0) (1,032.5) (757.1)
Recoveries 268.8 237.7 224.9 147.2 132.9
Other 137.6 (67.8) 237.8 93.3 (2.8)
------------- -------------- ------------- ------------- --------------
Ending Balance $ 2,174.4 $ 1,978.7 $ 1,949.9 $ 1,563.1 $ 1,268.6
============= ============== ============= ============= ==============
% of Net Receivables 3.16% 3.25% 3.53% 3.36% 3.20%
Loss Coverage Ratio (3) 1.50x 1.74x 1.59x 1.77x 2.03x
</TABLE>
(1) Including current maturities of long-term debt.
(2) Excludes manufactured housing and recreational vehicles.
(3) See footnote 8 on page 20 of the Form 10-K for additional information.
(4) See footnote 1 on page 19 of the Form 10-K for additional information.
(5) Net of capital contributions from Ford and excludes one-time dividend
related to the Company's Initial Public Offering in 1996. (See footnote 6 on
page 20 of the Form 10-K for additional information.)
(6) Excludes push-down goodwill from Ford Motor Company.
(7) Total debt to tangible equity as adjusted on a pro forma basis to reflect
the treatment as equity of a $500 million debt security issued in July 1999,
would have been 10.40:1 at December 31, 1999.
(8) Calculated net of short-term investments.
<PAGE> 17
14
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(dollar amounts in millions, except per share amounts)
year ended or at December 31 1999 1998 1997 1996 1995
---------------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
KEY DATA
Book Value per Share(4) $ 13.46 $ 11.72 $ 9.05 $ 7.84 $ 6.92
Dividends per Share
of Common Stock(4) 0.230 0.205 0.200 0.100 --
Net Dividends Declared(5) 167.5 142.0 138.6 148.0 118.0
Payout Ratio 11% 12% 13% 17% 16%
Adjusted Capital Formation Rate 17 19 19 18 17
End of Period
Shares Outstanding (millions)(4) 728.1 727.2 693.0 693.3 693.3
Fixed Charge Coverage Ratio 1.60x 1.60x 1.59x 1.57x 1.55x
Debt to Equity(8) 7.00 7.40 7.84 7.55 7.29
Debt to Adjusted Equity(6)(8) 7.65 8.12 8.83 8.89 9.00
Debt to Tangible Equity(7)(8) 11.34 9.51 9.52 9.71 9.94
</TABLE>
- -------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY DEBT TO EQUITY
-------------------- --------------
($ IN BILLIONS)
[CHART] [CHART]
<PAGE> 18
15
five year financial trends - funding and capital
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(dollar amounts in millions, except per share amounts)
year ended or at December 31 1999 1998
Amount % Total Avg. Rate Amount % Total Avg. Rate
------ ------- --------- ------ ------- ---------
<S> <C> <C> <C> <C> <C> <C>
DEBT
Short-Term:
Commercial Paper $ 25,991.9 37.9% 5.61% $ 24,144.3 38.1% 5.20%
Bank Loans 1,261.5 1.8 4.72 1,565.5 2.5 5.49
---------- ----- ---------- -----
Total 27,253.4 39.7 5.57 25,709.8 40.6 5.21
---------- ----- ---------- -----
Long-Term: (1)
Senior 40,978.8 59.7 5.81 37,171.4 58.7 6.11
Subordinated 425.2 0.6 7.25 425.3 0.7 7.25
---------- ----- ---------- -----
Total 41,404.0 60.3 5.82 37,596.7 59.4 6.12
---------- ----- ---------- -----
Total Debt $ 68,657.4 100.0% 5.72% $ 63,306.5 100.0% 5.75%
========== ===== ========== =====
CREDIT FACILITIES OUTSTANDING $ 21,593.9 $ 19,129.4
MATURITIES
Due in Less than 1 Year $ 36,012.3 52.4% $ 33,364.4 52.7%
Due in 1-2 Years 7,313.2 10.7 4,649.4 7.3
Due in 2+ Years 25,331.9 36.9 25,292.7 40.0
---------- ----- ---------- -----
Total $ 68,657.4 100.0% $ 63,306.5 100.0%
========== ===== ========== =====
TERM DEBT PLACEMENTS
U.S. Domestic Underwritten $ 6,065.0 60.8% $ 5,125.0 38.7%
International Underwritten 565.0 5.7 1,328.0 10.0
Global Underwritten 1,500.0 15.0 4,800.0 36.2
Medium-Term Notes and Other 1,840.0 18.5 2,006.0 15.1
---------- ----- ---------- -----
Total $ 9,970.0 100.0% $ 13,259.0 100.0%
========== ===== ========== =====
CAPITAL
Equity
Per Share (2) $ 13.46 $ 11.72
Amount $ 9,800.5 12.5% $ 8,526.5 11.9%
Debt 68,657.4 87.5 63,306.5 88.1
---------- ----- ---------- -----
Total $ 78,457.9 100.0% $ 71,833.0 100.0%
========== ===== ========== =====
KEY RATIOS
Debt to Equity (5) 7.00x 7.40x
Debt to Adjusted Equity (3)(5) 7.65 8.12
Debt to Tangible Equity (4)(5) 11.34 9.51
Servicing Portfolio, End of Period $ 12,131.2 $ 5,702.9
% of Managed Assets 12.8% 7.1%
</TABLE>
(1) Including current maturities of long-term debt.
(2) See footnote 1 on page 19 of the Form 10-K for additional information.
(3) Excludes push-down goodwill from Ford Motor Company.
<PAGE> 19
16
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1997 1996 1995
Amount % Total Avg. Rate Amount % Total Avg. Rate Amount % Total Avg. Rate
------ ------- --------- ------ ------- --------- ------ ------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 19,483.5 39.6% 5.85% $ 15,907.9 38.7% 5.74% $ 12,902.9 36.7% 5.73%
1,487.1 3.0 7.56 1,167.3 2.8 7.80 844.4 2.4 6.48
------------ ----- ------------ ----- ------------ -----
20,970.6 42.6 5.97 17,075.2 41.5 5.88 13,747.3 39.1 5.78
------------ ----- ------------ ----- ------------ -----
27,802.6 56.5 6.57 23,604.0 57.4 6.83 21,230.8 60.5 6.91
425.4 0.9 7.25 425.5 1.1 7.25 141.8 0.4 8.09
------------ ----- ------------ ----- ------------ -----
28,228.0 57.4 6.58 24,029.5 58.5 6.84 21,372.6 60.9 6.92
------------ ----- ------------ ----- ------------ -----
$ 49,198.6 100.0% 6.32% $ 41,104.7 100.0% 6.44% $ 35,119.9 100.0% 6.47%
============ ===== ============ ===== ============ =====
$ 15,055.4 $ 12,590.1 $ 10,560.4
$ 25,655.8 52.2% $ 20,806.2 50.6% $ 16,914.0 48.1%
5,875.3 11.9 4,213.3 10.3 3,676.8 10.5
17,667.5 35.9 16,085.2 39.1 14,529.1 41.4
------------ ----- ------------ ----- ------------ -----
$ 49,198.6 100.0% $ 41,104.7 100.0% $ 35,119.9 100.0%
============ ===== ============ ===== ============ =====
$ 4,900.0 60.1% $ 3,350.0 55.9% $ 3,700.0 60.2%
2,101.0 25.8 900.0 15.0
1,150.0 14.1 1,743.0 29.1 2,443.0 39.8
------------ ----- ------------ ----- ------------ -----
$ 8,151.0 100.0% $ 5,993.0 100.0% $ 6,143.0 100.0%
============ ===== ============ ===== ============ =====
$ 9.05 $ 7.84 $ 6.92
$ 6,268.6 11.3% $ 5,437.5 11.7% $ 4,801.1 12.0%
49,198.6 88.7 41,104.7 88.3 35,119.9 88.0
------------ ----- ------------ ----- ------------ -----
$ 55,467.2 100.0% $ 46,542.2 100.0% $ 39,921.0 100.0%
============ ===== ============ ===== ============ =====
7.84x 7.55x 7.29x
8.83 8.89 9.00
9.52 9.71 9.94
$ 2,922.1 $ 2,109.9 $ -
4.9% 4.2% -%
</TABLE>
(4) Total debt to tangible equity as adjusted on a pro forma basis to reflect
the treatment as equity of a $500 million debt security issued in July 1999,
would have been 10.40:1 at December 31, 1999.
(5) Calculated net of short-term investments.
<PAGE> 20
17
five year financial trends - managed receivables
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(dollar amounts in millions)
year ended or at December 31 1999 1998
Amount % Total % Growth Amount % Total % Growth
------ ------- -------- ------ ------- --------
<S> <C> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES PORTFOLIO MIX (1)
Secured $ 51,173.9 64.8% 20.8% $ 42,377.9 66.1% 17.2%
Unsecured 27,746.0 35.2 27.5 21,756.0 33.9 27.6
END OF PERIOD OUTSTANDINGS
Home Equity $ 27,480.3 34.8% 21.5% $ 22,622.3 35.3% 20.4%
Personal Loans/Retail Sales Finance 16,012.4 20.3 39.7 11,459.2 17.9 31.2
Truck and Truck Trailer 13,130.3 16.6 21.8 10,783.6 16.8 11.3
Credit Card 11,733.6 14.9 14.0 10,296.8 16.1 23.7
Equipment 6,977.3 8.8 14.1 6,114.0 9.5 15.3
Fleet Leasing 2,070.1 2.6 30.2 1,589.7 2.5 2.5
Warehouse and Other 1,515.9 2.0 19.5 1,268.3 1.9 54.2
------------ ----- ------------ -----
Total ongoing operations $ 78,919.9 100.0% 23.1% $ 64,133.9 100.0% 20.5%
===== =====
Manufactured Housing 5,494.8 5.8 5,193.5 47.3
Recreational Vehicles - - 2,036.9 22.3
------------ ------------
Total as reported $ 84,414.7 18.3% $ 71,364.3 22.2%
============ ============
AVERAGE OUTSTANDINGS
Home Equity $ 25,579.0 34.7% $ 20,921.4 35.9%
Personal Loans/Retail Sales Finance 15,385.5 20.9 10,214.3 17.6
Truck and Truck Trailer 12,105.9 16.4 10,246.4 17.6
Credit Card 10,834.7 14.7 8,551.7 14.7
Equipment 6,526.0 8.9 5,717.2 9.8
Fleet Leasing 1,812.6 2.5 1,584.3 2.7
Warehouse and Other 1,378.1 1.9 997.1 1.7
------------ ----- ------------ -----
Total ongoing operations $ 73,621.8 100.0% $ 58,232.4 100.0%
===== =====
Manufactured Housing 5,466.8 4,393.3
Recreational Vehicles - 1,880.1
------------ ------------
Total as reported $ 79,088.6 $ 64,505.8
============ ============
</TABLE>
(1) Excludes manufactured housing and recreational vehicles.
<PAGE> 21
18
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1997 1996 1995
Amount % Total % Growth Amount % Total % Growth Amount % Total % Growth
------ ------- -------- ------ ------- -------- ------ ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 36,158.9 68.0% 15.5% $ 31,310.8 69.9% 18.4% $ 26,443.5 70.3% 17.5%
17,055.3 32.0 26.8 13,448.9 30.1 20.0 11,209.7 29.7 18.0
$ 18,796.0 35.3% 12.6% $ 16,691.4 37.3% 16.6% $ 14,316.3 38.0% 15.0%
8,731.6 16.4 17.6 7,425.1 16.6 19.3 6,225.1 16.5 14.8
9,688.9 18.2 12.7 8,598.3 19.2 11.3 7,724.0 20.5 14.6
8,323.7 15.6 38.2 6,023.8 13.5 20.8 4,984.6 13.2 22.3
5,300.5 10.0 15.9 4,571.8 10.2 20.9 3,781.7 10.1 28.3
1,551.1 2.9 42.2 1,090.8 2.4 N/M 330.8 0.9 9.1
822.4 1.6 129.4 358.5 0.8 23.3 290.7 0.8 N/M
------------ ----- ------------ ----- ------------ -----
$ 53,214.2 100.0% 18.9% $ 44,759.7 100.0% 18.9% $ 37,653.2 100.0% 17.6%
===== ===== =====
3,526.9 38.4 2,547.5 24.3 2,049.3 21.9
1,665.4 26.6 1,315.6 - - -
------------ ------------ ------------
$ 58,406.5 20.1% $ 48,622.8 22.5% $ 39,702.5 17.9%
============ ============ ============
$ 17,604.3 35.7% $ 15,503.5 37.5% $ 13,383.1 38.4%
8,136.5 16.5 6,836.9 16.6 5,822.7 16.7
9,005.4 18.2 8,172.6 19.8 7,231.9 20.8
8,058.1 16.3 5,717.8 13.8 4,530.5 13.0
4,866.7 9.9 4,269.2 10.3 3,364.4 9.7
1,173.3 2.4 672.7 1.6 317.0 0.9
503.8 1.0 176.1 0.4 179.3 0.5
------------ ----- ------------ ----- ------------ -----
$ 49,348.1 100.0% $ 41,348.8 100.0% $ 34,828.9 100.0%
===== ===== =====
3,030.3 2,315.7 1,865.2
1,521.3 755.3 -
------------ ------------ ------------
$ 53,899.7 $ 44,419.8 $ 36,694.1
============ ============ ============
</TABLE>
<PAGE> 22
19
five year financial trends - credit quality - managed basis
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(dollar amounts in millions)
year ended or at December 31 1999 1998
Amount % Amount %
------ ---- ------ ----
<S> <C> <C> <C> <C>
60+DAYS CONTRACTUAL DELINQUENCY
(% of Managed Gross Receivables) (1)
Home Equity $ 928.5 3.29% $ 639.3 2.74%
Personal Loans/Retail Sales Finance 666.2 3.84 469.3 3.74
Truck and Truck Trailer 214.7 1.48 146.3 1.22
Credit Card 488.2 4.17 485.1 4.73
Equipment 70.3 0.89 57.7 0.84
Fleet Leasing 8.9 0.39 19.6 1.09
Total ongoing operations $ 2,381.6 2.85% $ 1,819.3 2.67%
Manufactured Housing 97.1 1.66 131.3 2.31
Recreational Vehicles - - 1.3 0.07
Total as reported $ 2,478.7 2.77% $ 1,951.9 2.57%
NET LOSSES
(% of Average Managed Receivables)
Home Equity $ 336.8 1.32% $ 230.8 1.10%
Personal Loans/Retail Sales Finance 856.7 5.57 579.2 5.67
Truck and Truck Trailer 80.9 0.67 49.7 0.48
Credit Card 766.3 7.07 630.8 7.38
Equipment 32.1 0.49 11.5 0.20
Fleet Leasing 0.7 0.04 1.0 0.07
Total ongoing operations $ 2,075.2 2.82% $ 1,508.3 2.59%
Manufactured Housing 140.9 2.58 53.3 1.21
Recreational Vehicles - - 4.4 0.24
Total as reported $ 2,216.1 2.80% $ 1,566.0 2.43%
</TABLE>
(1) Includes unearned finance income.
<PAGE> 23
20
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1997 1996 1995
Amount % Amount % Amount %
------ ---- ------ ---- ------ ----
<S> <C> <C> <C> <C> <C>
$ 434.7 2.22% $ 369.3 2.12% $ 284.6 1.90%
342.6 3.44 287.1 3.32 190.1 2.58
131.9 1.22 139.5 1.45 61.8 0.72
324.2 3.92 254.2 4.22 170.2 3.41
54.7 0.91 34.6 0.67 24.5 0.57
10.2 0.61 2.3 0.20 0.7 0.18
$ 1,299.3 2.27% $ 1,087.3 2.24% $ 732.1 1.90%
54.5 1.29 34.3 0.99 23.3 0.73
1.3 0.08 0.5 0.04 - -
$ 1,355.1 2.15% $ 1,122.1 2.11% $ 755.4 1.71%
$ 182.7 1.04% $ 133.9 0.86% $ 138.6 1.04%
428.1 5.26 317.2 4.64 235.6 4.05
28.5 0.32 26.5 0.32 14.6 0.20
572.1 7.10 370.6 6.48 213.0 4.70
14.2 0.29 17.0 0.40 6.9 0.20
1.9 0.16 0.5 0.08 0.2 0.05
$ 1,219.1 2.47% $ 865.9 2.09% $ 608.7 1.75%
26.3 0.87 20.9 0.90 15.5 0.83
4.6 0.30 1.8 0.23 - -
$ 1,250.0 2.32% $ 888.6 2.00% $ 624.2 1.70%
</TABLE>
<PAGE> 24
21
five year product line trends - home equity receivables
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(dollar amounts in millions, except average balances)
year ended or at December 31 1999 1998 1997 1996 1995
---------------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES
U.S. Full-Service Branch $ 6,303.5 $ 6,498.5 $ 8,439.4 $ 7,257.7 $ 6,040.8
U.S. Centralized 17,797.6 13,971.6 8,988.4 8,178.3 7,149.6
International 3,379.2 2,152.2 1,368.2 1,255.4 1,125.9
------------- -------------- ------------- ------------- --------------
Total $ 27,480.3 $ 22,622.3 $ 18,796.0 $ 16,691.4 $ 14,316.3
============= ============== ============= ============= ==============
% OF MANAGED RECEIVABLES
U.S. Full-Service Branch 23% 29% 45% 43% 42%
U.S. Centralized 65 62 48 49 50
International 12 9 7 8 8
------------- -------------- ------------- ------------- --------------
Total 100% 100% 100% 100% 100%
============= ============== ============= ============= ==============
GROWTH IN MANAGED RECEIVABLES
Amount $ 4,858.0 $ 3,826.3 $ 2,104.6 $ 2,375.1 $ 1,866.4
Rate 21.5% 20.4% 12.6% 16.6% 15.0%
CREDIT QUALITY
60+Days Contractual Delinquency $ 928.5 $ 639.3 $ 434.7 $ 369.3 $ 284.6
% of Managed Gross Receivables 3.29% 2.74% 2.22% 2.12% 1.90%
Net Losses $ 336.8 $ 230.8 $ 182.7 $ 133.9 $ 138.6
% of AMR 1.32% 1.10% 1.04% 0.86% 1.04%
OTHER INFORMATION
Number of Accounts 600,911 492,325 420,384 389,451 347,864
Average Account Balance $ 45,731 $ 45,950 $ 44,712 $ 42,859 $ 41,155
% Fixed Rate 93% 87% 85% 74% 64%
% First Mortgages 76 73 79 77 75
</TABLE>
<PAGE> 25
22
HOME EQUITY RECEIVABLES
MANAGED RECEIVABLES
MANAGED RECEIVABLES BY DELIVERY CHANNEL
------------------- -------------------
($ IN BILLIONS) 1999
[CHART] [CHART]
- --------------------------------------------------------------------------------
GROWTH IN MANAGED RECEIVABLES NUMBER OF ACCOUNTS
----------------------------- ------------------
(THOUSANDS)
[CHART] [CHART]
<PAGE> 26
23
five year product line trends - personal loans/retail sales finance receivables
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(dollar amounts in millions, except average balances)
year ended or at December 31 1999 1998 1997 1996 1995
---------------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES
U.S. Full-Service Branch $ 5,827.4 $ 5,055.5 $ 5,497.3 $ 4,901.0 $ 4,278.3
U.S. Centralized 1,638.3 1,299.1 1,219.5 885.5 474.4
International 8,546.7 5,104.6 2,014.8 1,638.6 1,472.4
------------- -------------- ------------- ------------- --------------
Total $ 16,012.4 $ 11,459.2 $ 8,731.6 $ 7,425.1 $ 6,225.1
============= ============== ============= ============= ==============
% OF MANAGED RECEIVABLES
U.S. Full-Service Branch 37% 44% 63% 66% 69%
U.S. Centralized 10 11 14 12 8
International 53 45 23 22 23
------------- -------------- ------------- ------------- --------------
Total 100% 100% 100% 100% 100%
============= ============== ============= ============= ==============
GROWTH IN MANAGED RECEIVABLES
Amount $ 4,553.2 $ 2,727.6 $ 1,306.5 $ 1,200.0 $ 804.8
Rate 39.7% 31.2% 17.6% 19.3% 14.8%
CREDIT QUALITY
60+Days Contractual Delinquency $ 666.2 $ 469.3 $ 342.6 $ 287.1 $ 190.1
% of Gross Receivables 3.84% 3.74% 3.44% 3.32% 2.58%
Net Losses $ 856.7 $ 579.2 $ 428.1 $ 317.2 $ 235.6
% of AMR 5.57% 5.67% 5.26% 4.64% 4.05%
OTHER INFORMATION
PERSONAL LOANS
Number of Accounts 3,364,811 3,020,151 2,169,414 1,942,567 1,681,780
Average Account Balance $ 3,332 $ 2,763 $ 2,621 $ 2,579 $ 2,507
RETAIL SALES FINANCE
Number of Accounts 2,431,395 1,708,743 1,395,198 1,294,336 1,082,270
Average Account Balance $ 1,947 $ 1,823 $ 2,182 $ 1,866 $ 1,856
</TABLE>
<PAGE> 27
24
PERSONAL LOANS/RETAIL SALES FINANCE RECEIVABLES
MANAGED RECEIVABLES
MANAGED RECEIVABLES BY DELIVERY CHANNEL
------------------- -------------------
($ IN BILLION) 1999
[CHART] [CHART]
- -------------------------------------------------------------------------------
GROWTH IN MANAGED RECEIVABLES NUMBER OF ACCOUNTS
----------------------------- ------------------
(IN MILLIONS)
[CHART] [CHART]
<PAGE> 28
25
five year product line trends - credit card receivables
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(dollar amounts in millions, except average balances)
year ended or at December 31 1999 1998 1997 1996 1995
---------------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES
U.S. Bankcard $ 6,145.4 $ 6,086.0 $ 6,356.0 $ 5,169.5 $ 4,280.9
U.S. Private Label 4,782.9 3,536.0 1,483.2 635.4 577.1
International 805.3 674.8 484.5 218.9 126.6
------------- -------------- ------------- ------------- --------------
Total $ 11,733.6 $ 10,296.8 $ 8,323.7 $ 6,023.8 $ 4,984.6
============= ============== ============= ============= ==============
% OF MANAGED RECEIVABLES
U.S. Bankcard 52% 59% 76% 86% 86%
U.S. Private Label 41 34 18 10 11
International 7 7 6 4 3
------------- -------------- ------------- ------------- --------------
Total 100% 100% 100% 100% 100%
============= ============== ============= ============= ==============
GROWTH IN MANAGED RECEIVABLES
Amount $ 1,436.8 $ 1,973.1 $ 2,299.9 $ 1,039.2 $ 908.1
Rate 14.0% 23.7% 38.2% 20.8% 22.3%
CREDIT QUALITY
60+Days Contractual Delinquency $ 488.2 $ 485.1 $ 324.2 $ 254.2 $ 170.2
% of Managed Gross Receivables 4.17% 4.73% 3.92% 4.22% 3.41%
Net Losses $ 766.3 $ 630.8 $ 572.1 $ 370.6 $ 213.0
% of AMR 7.07% 7.38% 7.10% 6.48% 4.70%
OTHER INFORMATION
U.S. Bankcard
Number of Accounts 4,019,880 3,478,864 3,555,095 3,191,347 2,943,493
Average Account Balance $ 1,529 $ 1,749 $ 1,788 $ 1,620 $ 1,454
% Revolving 89% 96% 96% 96% 95%
U.S. PRIVATE LABEL
Number of Accounts 14,185,006 10,467,313 7,037,686 3,159,820 3,220,182
Average Account Balance $ 337 $ 338 $ 211 $ 201 $ 179
% Revolving 75% 75% 80% 80% 78%
INTERNATIONAL
Number of Accounts 315,781 279,835 216,909 118,887 82,414
Average Account Balance $ 2,550 $ 2,411 $ 2,234 $ 1,841 $ 1,536
% Revolving 93% 94% 95% 96% 98%
</TABLE>
<PAGE> 29
26
CREDIT CARD RECEIVABLES
MANAGED RECEIVABLES MANAGED RECEIVABLES BY TYPE
------------------- ---------------------------
($ IN BILLION) 1999
[CHART] [CHART]
- -------------------------------------------------------------------------------
GROWTH IN MANAGED RECEIVABLES 1999 CREDIT PROFILES
----------------------------- --------------------
(REVOLVING)
[CHART] [CHART]
<PAGE> 30
27
five year product line trends - truck and truck trailer receivables
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(dollar amounts in millions, except average balances)
year ended or at December 31 1999 1998 1997 1996 1995
---------------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES
Installment $ 9,000.9 $ 7,730.6 $ 6,983.5 $ 6,249.3 $ 5,371.5
Lease 2,427.5 2,029.6 1,773.5 1,498.3 1,304.8
Wholesale 1,701.9 1,023.4 931.9 850.7 1,047.7
------------- ------------- ------------- ------------- -------------
Total $ 13,130.3 $ 10,783.6 $ 9,688.9 $ 8,598.3 $ 7,724.0
============= ============= ============= ============= =============
% OF MANAGED RECEIVABLES
Installment 69% 72% 72% 73% 69%
Lease 18 19 18 17 17
Wholesale 13 9 10 10 14
------------- ------------- ------------- ------------- -------------
Total 100% 100% 100% 100% 100%
============= ============= ============= ============= =============
GROWTH IN MANAGED RECEIVABLES
Amount $ 2,346.7 $ 1,094.7 $ 1,090.6 $ 874.3 $ 984.3
Rate 21.8% 11.3% 12.7% 11.3% 14.6%
CREDIT QUALITY
60+Days Contractual Delinquency $ 214.7 $ 146.3 $ 131.9 $ 139.5 $ 61.8
% of Gross Receivables 1.48% 1.22% 1.22% 1.45% 0.72%
Net Losses $ 80.9 $ 49.7 $ 28.5 $ 26.5 $ 14.6
% of AMR 0.67% 0.48% 0.32% 0.32% 0.20%
OTHER INFORMATION
Installment and Leasing Receivables
Number of Accounts 299,871 240,737 223,236 197,070 177,789
Average Account Balance $ 38,111 $ 40,543 $ 39,228 $ 39,314 $ 37,552
Wholesale Receivables
Number of Dealers 846 839 754 787 734
Average Balance per Dealer $ 2,011,702 $ 1,219,785 $ 1,235,942 $ 1,080,940 $ 1,427,384
</TABLE>
<PAGE> 31
28
TRUCK and TRUCK TRAILER RECEIVABLES
MANAGED RECEIVABLES MANAGED RECEIVABLES BY TYPE
------------------- ---------------------------
($ IN BILLION) 1999
[CHART] [CHART]
- -------------------------------------------------------------------------------
GROWTH IN MANAGED RECEIVABLES NUMBER OF DEALERS
----------------------------- -----------------
[CHART] [CHART]
<PAGE> 32
29
five year product line trends - equipment receivables
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(dollar amounts in millions, except average balances)
year ended or at December 31 1999 1998 1997 1996 1995
---------------------------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES
Installment $ 4,015.0 $ 3,079.5 $ 2,788.4 $ 2,524.0 $ 2,057.1
Lease 1,957.1 2,070.2 1,752.8 1,376.3 1,054.8
Wholesale 1,005.2 964.3 759.3 671.5 669.8
--------- --------- --------- --------- ---------
Total $ 6,977.3 $ 6,114.0 $ 5,300.5 $ 4,571.8 $ 3,781.7
========= ========= ========= ========= =========
% OF MANAGED RECEIVABLES
Installment 58% 50% 53% 55% 54%
Lease 28 34 33 30 28
Wholesale 14 16 14 15 18
--------- --------- --------- --------- ---------
Total 100% 100% 100% 100% 100%
========= ========= ========= ========= =========
GROWTH IN MANAGED RECEIVABLES
Amount $ 863.3 $ 813.5 $ 728.7 $ 790.1 $ 834.5
Rate 14.1% 15.3% 15.9% 20.9% 28.3%
CREDIT QUALITY
60+Days Contractual Delinquency $ 70.3 $ 57.7 $ 54.7 $ 34.6 $ 24.5
% of Gross Receivables 0.89% 0.84% 0.91% 0.67% 0.57%
Net Losses $ 32.1 $ 11.5 $ 14.2 $ 17.0 $ 6.9
% of AMR 0.49% 0.20% 0.29% 0.40% 0.20%
OTHER INFORMATION
Installment and Leasing Receivables
Number of Accounts 192,026 195,025 176,919 164,476 129,276
Average Account Balance $ 31,100 $ 26,405 $ 25,668 $ 23,713 $ 24,072
Wholesale Receivables
Number of Dealers 1,101 1,195 1,184 1,126 993
Average Balance per Dealer $ 912,988 $ 806,946 $ 641,301 $ 596,359 $ 674,522
</TABLE>
<PAGE> 33
30
EQUIPMENT RECEIVABLES
MANAGED RECEIVABLES MANAGED RECEIVABLES BY TYPE
------------------- ---------------------------
($ IN BILLIONS) 1999
[CHART] [CHART]
- --------------------------------------------------------------------------------
GROWTH IN MANAGED RECEIVABLES NUMBER OF DEALERS
----------------------------- -----------------
[CHART] [CHART]
<PAGE> 34
31
five year product line trends - insurance statistical data (1)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(dollar amounts in millions)
year ended or at December 31 1999(2) 1998
Amount % Total % Growth Amount % Total % Growth
---------- ------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
NET WRITTEN PREMIUM
Credit Life, Accident and Other Related $ 384.9 32.8% 32.7% $ 290.1 49.0% (5.5)%
Physical Damage 351.2 30.0 77.6 197.8 33.4 (5.9)
Other Casualty 436.6 37.2 N/M 103.7 17.6 13.6
---------- ------- -------- -------
Total $ 1,172.7 100.0% 98.2% $ 591.6 100.0% (2.8)%
========== ======= ======== =======
PREMIUM REVENUE (3)
Credit Life, Accident and Other Related $ 306.6 29.0% 45.6% $ 210.6 44.7% 4.6%
Physical Damage 344.8 32.7 101.4 171.2 36.3 12.0
Other Casualty 404.3 38.3 N/M 89.7 19.0 35.1
---------- -------- -------- -------
Total $ 1,055.7 100.0% 123.9% $ 471.5 100.0% 12.1%
========== ======== ======== =======
INVESTMENT INCOME $ 198.9 101.9% $ 98.5 19.2%
BENEFITS PAID OR PROVIDED $ 447.0 182.7% $ 158.1 8.5%
as a % of Premium Revenue (Loss Ratio) 42.3% 33.5%
</TABLE>
(1) This table does not reflect any direct or indirect expenses that may be
associated with the Company's insurance operations. The Company markets its
insurance products through its consumer and commercial distribution systems
and, accordingly, does not allocate overhead and related expenses to its
insurance operations. This table does not include the non-affiliate
insurance operations of Balboa, which were sold in 1999.
- --------------------------------------------------------------------------------
NET WRITTEN PREMIUM NET WRITTEN PREMIUM BY PRODUCT
------------------- ------------------------------
($ IN MILLIONS) (1999)
[CHART] [CHART]
<PAGE> 35
32
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1997 1996 1995
Amount % Total % Growth Amount % Total % Growth Amount % Total % Growth
-------- ------- -------- -------- ------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 307.1 50.5% 8.8% $ 282.2 51.8% 17.3% $ 240.6 49.0% (0.7)%
210.3 34.5 12.9 186.2 34.2 3.3 180.3 36.8 6.9
91.3 15.0 20.3 75.9 14.0 9.1 69.6 14.2 27.7
-------- ------- -------- ------- -------- -------
$ 608.7 100.0% 11.8% $ 544.3 100.0% 11.0% $ 490.5 100.0% 5.3%
======== ======= ======== ======= ======== =======
$ 201.4 47.9% 9.6% $ 183.8 45.7% 11.5% $ 164.8 44.4% 11.3%
152.9 36.3 (1.4) 155.1 38.6 4.4 148.5 40.1 8.6
66.4 15.8 5.1 63.2 15.7 10.3 57.3 15.5 29.6
-------- ------- -------- ------- -------- -------
$ 420.7 100.0% 4.6% $ 402.1 100.0% 8.5% $ 370.6 100.0% 12.6%
======== ======= ======== ======= ======== =======
$ 82.6 15.2% $ 71.7 4.7% $ 68.5 44.8%
$ 145.7 (1.7)% $ 148.2 4.0% $ 142.5 (30.7)%
34.6% 36.9% 38.5%
</TABLE>
(2) The increase in the 1999 net written premium and premium revenue relates
primarily to the acquisition of Northland and the affiliate insurance of
AVCO.
(3) Includes compensation for insurance policies underwritten by other
companies.
- --------------------------------------------------------------------------------
PREMIUM REVENUE PREMIUM REVENUE BY PRODUCT
--------------- --------------------------
($ IN MILLIONS) (1999)
[CHART] [CHART]
<PAGE> 36
33
eight quarter financial trends - selected earnings information (unaudited) -
managed basis
- --------------------------------------------------------------------------------
(includes amount, % growth and % AMR)
<TABLE>
<CAPTION> 1999
4th Quarter 3rd Quarter
Amount % Growth % AMR Amount % Growth % AMR
--------- -------- ----- -------- -------- -----
REVENUES
<S> <C> <C> <C> <C> <C> <C>
Finance Charges $ 3,035.2 21% 14.65% $2,897.3 24% 14.51%
Insurance Premiums 270.2 86 1.30 268.7 144 1.35
Investment and Other Income 202.6 49 0.98 144.2 73 0.72
--------- ----- -------- ------
3,508.0 26 16.93 3,310.2 31 16.58
EXPENSES
Interest Expense 1,116.1 21 5.39 1,074.8 22 5.38
Operating Expense 994.4 24 4.80 948.9 35 4.75
Provision for Losses 634.3 32 3.06 556.6 40 2.79
Insurance Benefits Paid or Provided 116.8 131 0.56 111.3 225 0.56
--------- ------ -------- ------
2,861.6 27 13.81 2,691.6 33 13.48
--------- ------ -------- ------
EARNINGS BEFORE PROVISION FOR TAXES 646.4 23 3.12 618.6 23 3.10
PROVISION FOR INCOME TAXES 237.7 23 1.15 231.8 24 1.16
--------- ------ -------- ------
NET EARNINGS $ 408.7 23% 1.97% $ 386.8 22% 1.94%
========= ====== ======== ======
EPS (DILUTED)(1) $ 0.56 20% $ 0.53 16%
AVERAGE DILUTED
SHARES OUTSTANDING (000)(1) 729,711 731,586
KEY RATIOS
Net Interest Margin (% AMR) 9.26% 9.13%
Efficiency Ratio 43.71 44.67
Return on Average Assets 1.93 1.83
Return on Average Managed Assets 1.76 1.71
Return on Average Equity 16.97 16.67
Return on Average Adjusted Equity(2) 18.83 18.44
Average Managed Receivables (AMR) $ 82,863 $ 79,868
Average Managed Assets 93,056 90,394
Average Equity 9,633 9,280
Average Adjusted Equity(2) 8,810 8,513
<CAPTION>
1999
2nd Quarter 1st Quarter
Amount % Growth % AMR Amount % Growth % AMR
---------- -------- ------ ---------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
Finance Charges $ 2,802.8 24% 14.49% $ 2,747.7 29% 14.44%
Insurance Premiums 260.5 150 1.34 256.3 128 1.35
Investment and Other Income 184.0 161 0.95 181.5 243 0.95
---------- ------ --------- ------
3,247.3 34 16.78 3,185.5 39 16.74
EXPENSES
Interest Expense 1,036.1 21 5.35 1,031.6 28 5.42
Operating Expense 971.5 45 5.02 979.6 58 5.15
Provision for Losses 551.5 35 2.85 531.7 43 2.79
Insurance Benefits Paid or Provided 115.2 278 0.60 103.7 142 0.55
---------- ------ --------- ------
2,674.3 36 13.82 2,646.6 44 13.91
---------- ------ --------- ------
EARNINGS BEFORE PROVISION FOR TAXES 573.0 23 2.96 538.9 21 2.83
PROVISION FOR INCOME TAXES 214.9 25 1.11 202.1 23 1.06
---------- ------ --------- ------
NET EARNINGS $ 358.1 22% 1.85% $ 336.8 20% 1.77%
========== ====== ========= ======
EPS (DILUTED)(1) $ 0.49 16% $ 0.46 14%
AVERAGE DILUTED
SHARES OUTSTANDING (000)(1) 732,738 732,137
KEY RATIOS
Net Interest Margin (% AMR) 9.14% 9.02%
Efficiency Ratio 46.35 47.78
Return on Average Assets 1.72 1.65
Return on Average Managed Assets 1.62 1.56
Return on Average Equity 15.91 15.47
Return on Average Adjusted Equity(2) 17.56 17.20
Average Managed Receivables (AMR) $ 77,355 $76,113
Average Managed Assets 88,302 86,475
Average Equity 9,003 8,705
Average Adjusted Equity(2) 8,277 7,955
</TABLE>
(1) See footnote 1 on page 19 of the Form 10-K for additional information.
(2) Excludes push-down goodwill from Ford Motor Company.
Note: % growth represents the percentage change from the same quarter in the
prior year.
<PAGE> 37
34
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998
4th Quarter 3rd Quarter
Amount % Growth % AMR Amount % Growth % AMR
---------- -------- ------ ---------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
Finance Charges $ 2,503.5 21% 14.37% $ 2,330.8 16% 14.32%
Insurance Premiums 145.0 31 0.83 110.0 4 0.67
Investment and Other Income 136.1 119 0.79 83.6 45 0.51
---------- ------ ---------- ------
2,784.6 24 15.99 2,524.4 16 15.50
EXPENSES
Interest Expense 925.6 17 5.31 882.6 16 5.42
Operating Expense 801.4 26 4.60 705.2 17 4.33
Provision for Losses 481.9 42 2.77 397.9 19 2.44
Insurance Benefits Paid or Provided 50.6 32 0.29 34.2 (1) 0.21
---------- ------ ---------- ------
2,259.5 25 12.97 2,019.9 16 12.40
---------- ------ ---------- ------
525.1 19 3.02 504.5 16 3.10
EARNINGS BEFORE PROVISION FOR TAXES 193.1 19 1.11 186.9 15 1.15
PROVISION FOR INCOME TAXES ---------- ------ ---------- ------
$ 332.0 19% 1.91% $ 317.6 17% 1.95%
NET EARNINGS ========== ====== ========== ======
$ 0.47 18% $ 0.46 17%
EPS (DILUTED)(1)
AVERAGE DILUTED
SHARES OUTSTANDING (000)(1) 708,240 696,453
KEY RATIOS
Net Interest Margin (% AMR) 9.06% 8.90%
Efficiency Ratio 44.32 43.87
Return on Average Assets 1.83 1.97
Return on Average Managed Assets 1.71 1.84
Return on Average Equity 17.64 18.68
Return on Average Adjusted Equity(2) 19.85 20.94
Average Managed Receivables (AMR) $ 69,688 $ 65,109
Average Managed Assets 77,613 69,149
Average Equity 7,525 6,803
Average Adjusted Equity(2) 6,796 6,154
<CAPTION> 1998
2nd Quarter 1st Quarter
Amount % Growth % AMR Amount % Growth % AMR
---------- -------- ------ ---------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
REVENUES $ 2,257.7 16% 14.36% $ 2,123.0 17% 14.25%
Finance Charges 104.1 (1) 0.66 112.4 13 0.75
Insurance Premiums 70.4 35 0.45 52.9 16 0.36
Investment and Other Income ---------- ------ ---------- ------
2,432.2 16 15.47 2,288.3 16 15.36
EXPENSES 855.4 19 5.44 806.6 20 5.42
Interest Expense 671.4 17 4.27 620.0 17 4.16
Operating Expense 410.0 9 2.61 372.9 7 2.50
Provision for Losses 30.5 (17) 0.19 42.8 19 0.29
Insurance Benefits Paid or Provided ---------- ------ ---------- ------
1,967.3 15 12.51 1,842.3 16 12.37
---------- ------ ---------- ------
464.9 20 2.96 446.0 18 2.99
EARNINGS BEFORE PROVISION FOR TAXES 172.0 19 1.10 165.0 18 1.10
PROVISION FOR INCOME TAXES ---------- ------ ---------- ------
$ 292.9 20% 1.86% $ 281.0 18% 1.89%
NET EARNINGS ========== ====== ========== ======
$ 0.42 19% $ 0.40 18%
EPS (DILUTED)(1)
AVERAGE DILUTED
SHARES OUTSTANDING (000)(1) 697,180 697,529
KEY RATIOS
Net Interest Margin (% AMR) 8.92% 8.83%
Efficiency Ratio 43.42 43.09
Return on Average Assets 1.94 1.91
Return on Average Managed Assets 1.77 1.82
Return on Average Equity 17.82 17.61
Return on Average Adjusted Equity(2) 20.16 20.17
Average Managed Receivables (AMR) $ 62,890 $ 59,614
Average Managed Assets 66,245 61,801
Average Equity 6,577 6,382
Average Adjusted Equity(2) 5,894 5,670
</TABLE>
(1) See footnote 1 on page 19 of the Form 10-K for additional information.
(2) Excludes push-down goodwill from Ford Motor Company.
Note: % growth represents the percentage change from the same quarter in the
prior year.
<PAGE> 38
35
eight quarter financial trends - selected balance sheet information (unaudited)
- --------------------------------------------------------------------------------
(dollar amounts in millions, except per share amounts)
<TABLE>
<CAPTION>
1999
4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Cash and Cash Equivalents $ 1,026.3 $ 768.0 $ 3,485.4 $ 1,255.0
Investments in Securities 7,176.5 7,822.0 7,438.8 6,839.7
Net Finance Receivables 68,817.1 67,917.1 68,127.0 68,199.8
Allowance for Losses (2,174.4) (2,170.9) (2,139.4) (2,267.3)
Insurance Policy Claims and Reserves (985.9) (1,045.3) (1,011.7) (1,773.7)
Goodwill 3,747.8 3,903.4 3,741.6 4,057.4
Other Assets 5,349.4 7,764.5 6,252.4 5,625.0
------------ ------------ ----------- -----------
Total Assets $ 82,956.8 $ 84,958.8 $ 85,894.1 $ 81,935.9
============ ============ =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes Payable
Commercial Paper $ 25,991.9 $ 27,146.2 $ 28,879.1 $ 28,259.1
Bank Loans 1,261.5 409.8 431.2 480.6
Accounts Payable and Accruals 4,498.9 5,052.2 4,313.1 3,938.3
Long-Term Debt (1)
Senior Notes 40,978.8 42,453.4 42,735.6 39,972.5
Subordinated and Capital Notes 425.2 425.3 425.3 425.3
Stockholders' Equity 9,800.5 9,471.9 9,109.8 8,860.1
------------ ------------ ----------- -----------
Total Liabilities and
Stockholders' Equity $ 82,956.8 $ 84,958.8 $ 85,894.1 $ 81,935.9
============ ============ =========== ===========
MANAGED RECEIVABLES - as reported $ 84,414.7 $ 81,706.5 $ 78,530.0 $ 76,612.5
MANAGED RECEIVABLES - ongoing(2) 78,919.9 76,206.1 72,927.7 71,187.8
MANAGED ASSETS 95,088.0 92,342.4 91,331.3 86,805.4
ALLOWANCE FOR LOSSES
Beginning Balance $ 2,170.9 $ 2,139.4 $ 2,267.3 $ 1,978.7
Provision for Losses 409.9 369.3 364.4 362.8
Losses Sustained (432.2) (428.0) (430.5) (426.4)
Recoveries 42.1 69.2 80.2 77.3
Other (16.3) 21.0 (142.0) 274.9
------------ ------------ ----------- -----------
Ending Balance $ 2,174.4 $ 2,170.9 $ 2,139.4 $ 2,267.3
============ ============ =========== ===========
- -% of Net Receivables 3.16% 3.20% 3.14% 3.32%
Loss Coverage Ratio(3) 1.50x 1.63x 1.63x 1.65x
KEY DATA
Book Value per Share(4) $ 13.46 $ 13.01 $ 12.51 $ 12.17
Dividends per Share of Common Stock(4) 0.065 0.055 0.055 0.055
Net Dividends Declared 47.3 40.1 40.1 40.0
Payout Ratio 12% 10% 11% 12%
Adjusted Capital Formation Rate (annualized) 17 17 16 15
End of Period Shares Outstanding (millions)(4) 728.1 728.2 728.3 728.1
Fixed Charge Coverage Ratio 1.65x 1.62x 1.59x 1.56x
Debt to Equity(7) 7.00 7.41 7.66 7.79
Debt to Adjusted Equity(5)(7) 7.65 8.12 8.31 8.50
Debt to Tangible Equity(6)(7) 11.34 12.61 13.00 14.37
</TABLE>
(1) Including current maturities of long-term debt.
(2) Excludes manufactured housing and recreational vehicles.
(3) See footnote 8 on page 20 of the Form 10-K for additional information.
(4) See footnote 1 on page 19 of the Form 10-K for additional information.
(5) Excludes push-down goodwill from Ford Motor Company.
(6) Total debt to tangible equity as adjusted on a pro forma basis to reflect
the treatment as equity of a $500 million debt security issued in July
1999, would have been 11.49:1 at September 30, 1999 and 10.40:1 at December
31, 1999.
(7) Calculated net of short-term investments.
<PAGE> 39
36
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998
4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Cash and Cash Equivalents $ 4,665.6 $ 1,094.3 $ 364.8 $ 681.7
Investments in Securities 6,678.7 5,213.4 5,263.2 1,406.9
Net Finance Receivables 60,939.0 57,550.4 55,695.8 57,631.3
Allowance for Losses (1,978.7) (1,865.0) (1,848.7) (2,014.9)
Insurance Policy Claims and Reserves (1,463.9) (794.1) (795.3) (790.5)
Goodwill 1,890.4 1,228.2 1,219.9 1,094.3
Other Assets 4,444.3 3,678.1 3,510.4 2,559.2
------------ ------------ ----------- -----------
Total Assets $ 75,175.4 $ 66,105.3 $ 63,410.1 $ 60,568.0
============ ============ =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes Payable
Commercial Paper $ 24,144.3 $ 24,362.3 $ 23,236.0 $ 22,904.3
Bank Loans 1,565.5 224.7 674.8 636.6
Accounts Payable and Accruals 3,342.4 2,294.0 2,124.8 2,069.8
Long-Term Debt (1)
Senior Notes 37,171.4 31,831.9 30,269.1 28,028.5
Subordinated and Capital Notes 425.3 425.3 425.4 425.4
Stockholders' Equity 8,526.5 6,967.1 6,680.0 6,503.4
------------ ------------ ----------- -----------
Total Liabilities and
Stockholders' Equity $ 75,175.4 $ 66,105.3 $ 63,410.1 $ 60,568.0
============ ============ =========== ===========
MANAGED RECEIVABLES - as reported $ 71,364.3 $ 66,153.4 $ 64,311.8 $ 61,048.8
MANAGED RECEIVABLES - ongoing(2) 64,133.9 59,342.8 58,006.1 55,286.4
MANAGED ASSETS 80,878.3 70,649.8 68,132.1 63,564.0
ALLOWANCE FOR LOSSES
Beginning Balance $ 1,865.0 $ 1,848.7 $ 2,014.9 $ 1,949.9
Provision for Losses 322.2 253.5 342.8 365.0
Losses Sustained (362.4) (318.4) (349.2) (394.6)
Recoveries 60.5 75.0 43.2 59.0
Other 93.4 6.2 (203.0) 35.6
------------ ------------ ----------- -----------
Ending Balance $ 1,978.7 $ 1,865.0 $ 1,848.7 $ 2,014.9
============ ============ =========== ===========
- -% of Net Receivables 3.25% 3.24% 3.32% 3.50%
Loss Coverage Ratio(3) 1.74x 1.70x 1.51x 1.56x
KEY DATA
Book Value per Share(4) $ 11.72 $ 10.06 $ 9.65 $ 9.38
Dividends per Share of Common Stock(4) 0.055 0.050 0.050 0.050
Net Dividends Declared 38.0 34.7 34.6 34.7
Payout Ratio 11% 11% 12% 12%
Adjusted Capital Formation Rate (annualized) 19 19 18 18
End of Period Shares Outstanding (millions)(4) 727.2 692.6 692.6 693.1
Fixed Charge Coverage Ratio 1.62x 1.62x 1.59x 1.58x
Debt to Equity(7) 7.40 8.15 8.17 7.99
Debt to Adjusted Equity(5)(7) 8.12 9.01 9.06 8.95
Debt to Tangible Equity(6)(7) 9.51 9.90 9.99 9.61
</TABLE>
(1) Including current maturities of long-term debt.
(2) Excludes manufactured housing and recreational vehicles.
(3) See footnote 8 on page 20 of the Form 10-K for additional information.
(4) See footnote 1 on page 19 of the Form 10-K for additional information.
(5) Excludes push-down goodwill from Ford Motor Company.
(6) Total debt to tangible equity as adjusted on a pro forma basis to reflect
the treatment as equity of a $500 million debt security issued in July
1999, would have been 11.49:1 at September 30, 1999 and 10.40:1 at December
31, 1999.
(7) Calculated net of short-term investments.
<PAGE> 40
37
eight quarter financial trends - managed receivables
- --------------------------------------------------------------------------------
(dollar amounts in millions)
<TABLE>
<CAPTION>
1999
4th Quarter 3rd Quarter
Amount % Total % Growth Amount % Total % Growth
---------- --------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES PORTFOLIO MIX(1)
Secured $ 51,173.9 64.8% 12.7% $ 49,595.5 65.1% 18.4%
Unsecured 27,746.0 35.2 17.1 26,610.6 34.9 17.2
END OF PERIOD OUTSTANDINGS
Home Equity $ 27,480.3 34.8% 15.5% $ 26,457.9 34.7% 21.5%
Personal Loans/Retail Sales Finance 16,012.4 20.3 13.3 15,498.6 20.3 17.7
Truck and Truck Trailer 13,130.3 16.6 8.1 12,870.9 16.9 20.2
Credit Card 11,733.6 14.9 22.4 11,112.0 14.6 16.7
Equipment 6,977.3 8.8 6.6 6,863.6 9.0 8.4
Fleet Leasing 2,070.1 2.6 3.7 2,050.9 2.7 7.7
Warehouse and Other 1,515.9 2.0 48.4 1,352.2 1.8 9.9
---------- ------- ---------- -------
Total ongoing operations $ 78,919.9 100.0% 14.2% $ 76,206.1 100.0% 18.0%
======= =======
Manufactured Housing 5,494.8 (0.4) 5,500.4 (7.3)
Recreational Vehicles -- -- -- --
---------- ----------
Total as reported $ 84,414.7 13.3% $ 81,706.5 16.2%
========== ==========
AVERAGE OUTSTANDINGS
Home Equity $ 26,990.7 34.9% $ 25,681.8 34.6%
Personal Loans/Retail Sales Finance 15,649.3 20.2 15,102.5 20.3
Truck and Truck Trailer 13,026.9 16.8 12,519.8 16.9
Credit Card 11,336.2 14.7 10,882.5 14.6
Equipment 6,870.2 8.9 6,751.5 9.1
Fleet Leasing 2,057.9 2.7 2,011.5 2.7
Warehouse and Other 1,425.6 1.8 1,357.7 1.8
---------- ------- ----------- -------
Total ongoing operations $ 77,356.8 100.0% $ 74,307.3 100.0%
Manufactured Housing 5,506.1 5,560.9
Recreational Vehicles -- --
---------- ----------
Total as reported $ 82,862.9 $ 79,868.2
========== ==========
<CAPTION>
1999
2nd Quarter 1st Quarter
Amount % Total % Growth Amount % Total % Growth
---------- --------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES PORTFOLIO MIX(1) $ 47,416.4 65.0% 17.7% $ 45,404.0 63.8% 28.6%
Secured 25,511.3 35.0 (4.2) 25,783.8 36.2 74.1
Unsecured
END OF PERIOD OUTSTANDINGS
Home Equity $ 25,109.3 34.4% 5.5% $ 24,765.9 34.8% 37.9%
Personal Loans/Retail Sales Finance 14,843.5 20.4 (11.0) 15,264.1 21.4 132.8
Truck and Truck Trailer 12,252.6 16.8 30.0 11,397.3 16.0 22.8
Credit Card 10,667.8 14.6 5.6 10,519.7 14.8 8.7
Equipment 6,723.1 9.2 35.1 6,180.6 8.7 4.4
Fleet Leasing 2,012.0 2.8 109.3 1,580.2 2.2 (2.4)
Warehouse and Other 1,319.4 1.8 (43.4) 1,480.0 2.1 66.8
---------- ------ ---------- ------
Total ongoing operations $ 72,927.7 100.0% 9.8% $ 71,187.8 100.0% 44.0%
====== ======
Manufactured Housing 5,602.3 13.1 5,424.7 17.8
Recreational Vehicles -- -- -- --
---------- ----------
Total as reported $ 78,530.0 10.0% $ 76,612.5 29.4%
========== ==========
AVERAGE OUTSTANDINGS
Home Equity $ 24,964.2 34.8% $ 24,578.5 34.7%
Personal Loans/Retail Sales Finance 15,036.5 20.9 15,616.1 22.1
Truck and Truck Trailer 11,818.1 16.5 11,109.4 15.7
Credit Card 10,612.0 14.8 10,456.9 14.8
Equipment 6,409.5 8.9 6,120.1 8.6
Fleet Leasing 1,595.2 2.2 1,586.8 2.2
Warehouse and Other 1,399.2 1.9 1,334.3 1.9
---------- ------ ---------- ------
Total ongoing operations $ 71,834.7 100.0% $ 70,802.1 100.0%
====== ======
Manufactured Housing 5,520.7 5,311.1
Recreational Vehicles -- --
---------- ----------
Total as reported $ 77,355.4 $ 76,113.2
========== ==========
</TABLE>
(1) Excludes manufactured housing and recreational vehicles.
Note: % growth represents the annualized percentage change on a sequential
quarter basis.
<PAGE> 41
38
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998
4th Quarter 3rd Quarter
Amount % Total % Growth Amount % Total % Growth
---------- ------- -------- ---------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES PORTFOLIO MIX(1)
Secured $ 42,377.9 66.1% 14.7% $ 40,873.7 68.9% 11.3%
Unsecured 21,756.0 33.9 71.2 18,469.1 31.1 4.7
END OF PERIOD OUTSTANDINGS
Home Equity $ 22,622.3 35.3% 12.7% $ 21,924.5 37.0% 16.6%
Personal Loans/Retail Sales Finance 11,459.2 17.9 36.6 10,499.4 17.7 5.2
Truck and Truck Trailer 10,783.6 16.8 12.0 10,470.5 17.6 6.1
Credit Card 10,296.8 16.1 116.8 7,969.7 13.4 4.2
Equipment 6,114.0 9.5 20.7 5,813.8 9.8 1.6
Fleet Leasing 1,589.7 2.5 1.4 1,584.0 2.7 (4.7)
Warehouse and Other 1,268.3 1.9 69.3 1,080.9 1.8 34.0
---------- ------- ---------- -------
Total ongoing operations $ 64,133.9 100.0% 32.3% $ 59,342.8 100.0% 9.2%
======= =======
Manufactured Housing 5,193.5 30.8 4,822.0 36.0
Recreational Vehicles 2,036.9 9.7 1,988.6 22.7
---------- ----------
Total as reported $ 71,364.3 31.5% $ 66,153.4 11.5%
========== ==========
AVERAGE OUTSTANDINGS $ 22,397.3 35.8% $ 21,442.0 36.6%
Home Equity 11,172.0 17.8 10,373.3 17.7
Personal Loans/Retail Sales Finance 10,617.8 17.0 10,386.1 17.8
Truck and Truck Trailer 9,832.7 15.7 7,931.2 13.5
Credit Card 5,895.8 9.4 5,787.9 9.9
Equipment 1,588.8 2.5 1,597.0 2.7
Fleet Leasing 1,146.3 1.8 1,025.7 1.8
Warehouse and Other ---------- ------- ---------- -------
$ 62,650.7 100.0% $ 58,543.2 100.0%
Total ongoing operations ======= =======
Manufactured Housing 5,016.4 4,632.2
Recreational Vehicles 2,020.5 1,933.5
---------- ----------
Total as reported $ 69,687.6 $ 65,108.9
========== ==========
<CAPTION>
1998
2nd Quarter 1st Quarter
Amount % Total % Growth Amount % Total % Growth
---------- ------- -------- ---------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES PORTFOLIO MIX(1)
Secured $ 39,753.1 68.6% 16.6% $ 38,171.6 69.0% 22.3%
Unsecured 18,253.0 31.4 26.6 17,114.8 31.0 1.4
END OF PERIOD OUTSTANDINGS
Home Equity $21,050.8 36.3% 21.5% $ 19,976.3 36.1% 25.1%
Personal Loans/Retail Sales Finance 10,365.2 17.8 49.5 9,224.5 16.7 22.6
Truck and Truck Trailer 10,312.3 17.8 10.7 10,043.5 18.2 14.6
Credit Card 7,887.8 13.6 (0.1) 7,890.3 14.3 (20.8)
Equipment 5,790.9 10.0 11.2 5,632.7 10.2 25.1
Fleet Leasing 1,602.8 2.8 6.5 1,577.0 2.8 6.7
Warehouse and Other 996.3 1.7 23.0 942.1 1.7 58.2
---------- ------- ---------- -------
Total ongoing operations $ 58,006.1 100.0% 19.7% $ 55,286.4 100.0% 15.6%
======= =======
Manufactured Housing 4,423.9 45.5 3,972.4 50.5
Recreational Vehicles 1,881.8 20.5 1,790.0 29.9
---------- ----------
Total as reported $ 64,311.8 21.4% $ 61,048.8 18.1%
========== ==========
AVERAGE OUTSTANDINGS $ 20,480.9 36.0% $ 19,412.3 35.9%
Home Equity 10,067.5 17.7 8,883.9 16.4
Personal Loans/Retail Sales Finance 10,160.3 17.9 9,843.2 18.2
Truck and Truck Trailer 7,882.9 13.9 8,083.4 14.9
Credit Card 5,701.8 10.0 5,504.9 10.1
Equipment 1,593.4 2.8 1,560.6 2.9
Fleet Leasing 963.6 1.7 859.8 1.6
Warehouse and Other ---------- ------- ---------- -------
$ 56,850.4 100.0% $ 54,148.1 100.0%
Total ongoing operations ======= =======
Manufactured Housing 4,197.9 3,736.2
Recreational Vehicles 1,841.7 1,729.7
---------- ----------
Total as reported $ 62,890.0 $ 59,614.0
========== ==========
</TABLE>
(1) Excludes manufactured housing and recreational vehicles.
Note: % growth represents the annualized percentage change on a sequential
quarter basis.
<PAGE> 42
39
eight quarter financial trends - credit quality - managed basis
- --------------------------------------------------------------------------------
(dollar amounts in millions)
<TABLE>
<CAPTION>
1999
4th Quarter 3rd Quarter
Amount % Amount %
---------- ------ ---------- ------
<S> <C> <C> <C> <C>
60+DAYS CONTRACTUAL DELINQUENCY
(% of Managed Gross Receivables)(1)
Home Equity $ 928.5 3.29% $ 842.5 3.10%
Personal Loans/Retail Sales Finance 666.2 3.84 660.4 3.91
Truck and Truck Trailer 214.7 1.48 214.2 1.50
Credit Card 488.2 4.17 493.2 4.45
Equipment 70.3 0.89 95.3 1.24
Fleet Leasing 8.9 0.39 17.0 0.75
Total ongoing operations $ 2,381.6 2.85% $ 2,325.3 2.88%
Manufactured Housing 97.1 1.66 98.4 1.77
Recreational Vehicles -- -- -- --
Total $ 2,478.7 2.77% $ 2,423.7 2.81%
NET LOSSES
(% of Average Managed Receivables)
Home Equity $ 100.2 1.49% $ 92.6 1.44%
Personal Loans/Retail Sales Finance 237.2 6.06 202.0 5.35
Truck and Truck Trailer 26.3 0.81 20.2 0.64
Credit Card 188.8 6.66 185.9 6.83
Equipment 13.0 0.75 6.3 0.37
Fleet Leasing 0.3 0.06 0.2 0.03
Total ongoing operations $ 567.2 2.93% $ 507.1 2.73%
Manufactured Housing 47.4 3.45 38.9 2.80
Recreational Vehicles -- -- -- --
Total $ 614.6 2.97% $ 546.0 2.73%
<CAPTION>
1999
2nd Quarter 1st Quarter
Amount % Amount %
---------- ------ ----------- ------
<S> <C> <C> <C> <C>
60+DAYS CONTRACTUAL DELINQUENCY
(% of Managed Gross Receivables) (1)
Home Equity $ 790.0 3.05% $ 759.4 2.98%
Personal Loans/Retail Sales Finance 618.3 3.80 584.3 3.49
Truck and Truck Trailer 194.4 1.43 175.7 1.39
Credit Card 439.3 4.13 470.5 4.49
Equipment 68.0 0.90 79.4 1.15
Fleet Leasing 23.5 1.06 20.0 1.13
Total ongoing operations $ 2,136.5 2.76% $ 2,091.1 2.76%
Manufactured Housing 93.2 1.65 103.0 1.88
Recreational Vehicles -- -- -- --
Total $ 2,229.7 2.70% $ 2,194.1 2.70%
NET LOSSES
(% of Average Managed Receivables)
Home Equity $ 79.9 1.28% $ 64.1 1.04%
Personal Loans/Retail Sales Finance 199.9 5.32 217.6 5.57
Truck and Truck Trailer 20.6 0.70 13.8 0.50
Credit Card 200.4 7.55 191.2 7.31
Equipment 9.0 0.56 3.8 0.25
Fleet Leasing 0.1 0.03 0.1 0.03
Total ongoing operations $ 509.2 2.84% $ 492.0 2.78%
Manufactured Housing 28.5 2.07 26.1 1.96
Recreational Vehicles -- -- -- --
Total $ 537.5 2.78% $ 518.1 2.72%
</TABLE>
(1) Includes unearned finance income.
<PAGE> 43
40
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998
4th Quarter 3rd Quarter
Amount % Amount %
---------- ------ ---------- ------
<S> <C> <C> <C> <C>
60+DAYS CONTRACTUAL DELINQUENCY
(% of Managed Gross Receivables)(1)
Home Equity $ 639.3 2.74% $ 595.3 2.63%
Personal Loans/Retail Sales Finance 469.3 3.74 453.1 3.90
Truck and Truck Trailer 146.3 1.22 156.7 1.34
Credit Card 485.1 4.73 341.0 4.29
Equipment 57.7 0.84 59.7 0.91
Fleet Leasing 19.6 1.09 9.5 0.53
Total ongoing operations $ 1,819.3 2.67% $ 1,616.6 2.55%
Manufactured Housing 131.3 2.31 71.8 1.34
Recreational Vehicles 1.3 0.07 1.2 0.06
Total $ 1,951.9 2.57% $ 1,689.6 2.39%
NET LOSSES
(% of Average Managed Receivables)
Home Equity $ 66.4 1.19% $ 59.7 1.11%
Personal Loans/Retail Sales Finance 169.1 6.05 140.9 5.43
Truck and Truck Trailer 15.8 0.59 9.6 0.37
Credit Card 184.8 7.52 151.1 7.62
Equipment 1.7 0.12 4.8 0.33
Fleet Leasing 0.2 0.05 0.2 0.05
Total ongoing operations $ 440.9 2.81% $ 370.8 2.53%
Manufactured Housing 19.6 1.56 16.1 1.39
Recreational Vehicles 1.0 0.21 0.9 0.19
Total $ 461.5 2.65% $ 387.8 2.38%
<CAPTION>
1998
2nd Quarter 1st Quarter
Amount % Amount %
---------- ------ ---------- ------
<S> <C> <C> <C> <C>
60+DAYS CONTRACTUAL DELINQUENCY
(% of Managed Gross Receivables) (1)
Home Equity $ 523.9 2.40% $ 463.4 2.23%
Personal Loans/Retail Sales Finance 417.1 3.62 368.1 3.53
Truck and Truck Trailer 165.5 1.44 149.7 1.34
Credit Card 321.3 4.09 309.8 3.96
Equipment 63.4 0.97 71.0 1.12
Fleet Leasing 13.3 0.74 7.4 0.43
Total ongoing operations $ 1,505.1 2.43% $ 1,369.7 2.31%
Manufactured Housing 68.0 1.36 57.9 1.26
Recreational Vehicles 1.1 0.07 0.8 0.05
Total $ 1,574.2 2.29% $ 1,428.4 2.18%
NET LOSSES
(% of Average Managed Receivables)
Home Equity $ 54.9 1.07% $ 49.8 1.03%
Personal Loans/Retail Sales Finance 142.3 5.65 126.9 5.71
Truck and Truck Trailer 11.5 0.45 12.8 0.52
Credit Card 150.3 7.63 144.6 7.15
Equipment 3.5 0.25 1.5 0.11
Fleet Leasing 0.3 0.08 0.3 0.08
Total ongoing operations $ 362.9 2.55% $ 333.7 2.47%
Manufactured Housing 8.9 0.84 8.7 0.94
Recreational Vehicles 1.3 0.28 1.2 0.27
Total $ 373.1 2.37% $ 343.6 2.31%
</TABLE>
(1) Includes unearned finance income.
<PAGE> 44
41
summary of information by country
- --------------------------------------------------------------------------------
(dollar amounts in millions)
<TABLE>
<CAPTION>
at December 31 1999
Amount/No. % Total
---------- -------
<S> <C> <C>
MANAGED RECEIVABLES
United States $ 68,638.2 81%
Japan 7,483.8 9
Canada 4,116.8 5
United Kingdom 2,561.7 4
Puerto Rico 624.8 1
Hong Kong 330.9 --
Sweden 159.7 --
France 144.5 --
Mexico 112.8 --
Spain 103.1 --
India 101.1 --
Taiwan 18.9 --
Ireland 14.9 --
Costa Rica 3.5 --
---------- -------
Total $ 84,414.7 100%
========== =======
BRANCHES
United States 1,470 53%
Japan 677 24
Canada 326 12
United Kingdom 113 4
Puerto Rico 83 3
Hong Kong 8 --
Sweden 1 --
France 10 1
Mexico 51 2
Spain 11 1
India 7 --
Taiwan 2 --
Ireland 7 --
Costa Rica 5 --
---------- -------
Total 2,771 100%
========== =======
EMPLOYEES
United States 22,895 70%
Japan 4,063 13
Canada 2,281 7
United Kingdom 1,347 4
Puerto Rico 883 3
Hong Kong 136 1
Sweden 23 --
France 42 --
Mexico 411 1
Spain 96 --
India 168 1
Taiwan 74 --
Ireland 27 --
Costa Rica 40 --
---------- -------
Total 32,486 100%
========== =======
</TABLE>
NOTE: In January 2000, the Company expanded its international operations into
Norway.
<PAGE> 45
- --------------------------------------------------------------------------------
Annual Supplement This report is a supplement to the Annual Report of
Associates First Capital Corporation for 1999 and should be used only with such
Annual Report. A copy of the 1999 Annual Report may be obtained by calling
1-888-NYSE-AFS.
Additional Information To learn more about The Associates, visit the Company's
website at http://www.theassociates.com or call ~1-888-NYSE-AFS. Securities
analysts and institutional investors may contact the Company's Investor
Relations department at 972-652-7294.
<PAGE> 46
[THE ASSOCIATES LOGO]
Associates First Capital Corporation
250 Carpenter Freeway
P.O. Box 660237
Dallas, Texas 75266-0237
972.652.4000
Internet: http://www.theassociates.com
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