Exhibit 99.1
SUPPLEMENTAL FINANCIAL DATA
Source: CIT Investor Relations Website
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The data provided herein has not been examined by independent accountants and is
not presented in accordance with generally accepted accounting principles
("GAAP"). As such, the data will vary from comparable data reported in CIT's
Forms 10-K & 10Q. Modifications include, but are not limited to, the following:
o The reclassification of certain prior period data to conform to the
current period presentation.
o The exclusion of the results of Tyco Capital Holding, Inc. ("TCH"), which
was merged into CIT Group Inc. (Nevada) prior to the initial public
offering ("IPO") on July 8, 2002. TCH does not impact the Company's
financial results for the period(s) subsequent to the IPO date.
Please refer to the Company's SEC filings on Forms 10-K and 10-Q for
consolidated financial results prepared in accordance with GAAP.
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Balance Sheet Data
(dollars in millions)
9/30/03 6/30/03 3/31/03 12/31/02 9/30/02 6/30/02
Assets
Finance Receivables $30,342.6 $28,413.6 $28,654.6 $27,621.3 $28,459.0 $27,925.4
Reserve for Credit Losses (752.5) (754.9) (757.0) (760.8) (777.8) (808.9)
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Net Finance Receivables 29,590.1 27,658.7 27,897.6 26,860.5 27,681.2 27,116.5
Operating Lease Equipment, Net 7,485.3 7,560.0 6,831.4 6,704.6 6,567.4 6,689.7
Finance Receivables Held for Sale 1,017.9 1,210.0 1,273.0 1,213.4 1,019.5 730.8
Interest in Trade Receivables, Net -- -- -- -- -- --
Cash & Equivalents 2,269.0 1,423.3 2,025.4 2,036.6 2,274.4 2,080.6
Goodwill, Net 388.7 389.8 384.4 384.4 384.4 384.4
Receivable from Tyco Affiliates -- -- -- -- -- --
Other Assets 4,749.6 4,942.9 4,837.4 4,732.9 4,783.6 4,334.7
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Total Assets $45,500.6 $43,184.7 $43,249.2 $41,932.4 $42,710.5 $41,336.7
============================================================================
Liabilities
Commercial Paper $ 4,935.8 $ 4,576.7 $ 4,490.5 $ 4,974.6 $ 4,654.2 $ 34.0
Bank Credit Facilities - Variable Rate -- -- 1,300.0 2,118.0 4,037.4 8,534.2
Senior Notes - Variable Rate 7,430.0 6,637.3 6,609.2 4,906.9 5,379.0 7,172.7
Senior Notes - Fixed Rate 21,390.4 21,216.8 20,152.1 19,681.8 18,385.4 16,882.2
Subordinated Notes - Fixed Rate -- -- -- -- -- --
Preferred Capital Securities 255.9 -- -- -- -- --
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Total Debt 34,012.1 32,430.8 32,551.8 31,681.3 32,456.0 32,623.1
Notes and Payables to Tyco Affiliates -- -- -- -- -- --
Credit Balance of Factoring Clients 3,103.0 2,471.6 2,437.9 2,270.0 2,513.8 1,980.0
Accrued Liabilities & Payables 3,164.7 2,968.4 3,006.1 2,853.2 2,725.2 1,961.2
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Total Liabilities 40,279.8 37,870.8 37,995.8 36,804.5 37,695.0 36,564.3
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Preferred Capital Securities -- 256.4 256.8 257.2 257.7 258.1
Minority Interest 39.9 -- -- -- -- --
Stockholders' Equity
Common Stock 2.1 2.1 2.1 2.1 2.1 --
Paid-in Capital 10,679.1 10,677.7 10,677.0 10,676.2 10,674.8 --
Contributed Capital -- -- -- -- -- 10,422.4
Accumulated (Deficit) Earnings (5,271.5) (5,393.8) (5,505.3) (5,606.9) (5,722.8) (5,857.5)
Accumulated Other Comprehensive (Loss)/Inc (227.6) (228.5) (177.2) (200.7) (196.3) (50.6)
Treasury Stock, at Cost (1.2) -- -- -- -- --
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Total Stockholders' Equity 5,180.9 5,057.5 4,996.6 4,870.7 4,757.8 4,514.3
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Total Liabilities and Stockholders' Equity $45,500.6 $43,184.7 $43,249.2 $41,932.4 $42,710.5 $41,336.7
============================================================================
3/31/02 12/31/01 9/30/01 6/30/01 3/31/01 12/31/00
Assets
Finance Receivables $26,297.7 $29,199.5 $30,791.3 $30,865.7 $33,300.7 $33,497.5
Reserve for Credit Losses (554.9) (472.1) (471.7) (463.8) (462.0) (468.5)
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Net Finance Receivables 25,742.8 28,727.4 30,319.6 30,401.9 32,838.7 33,029.0
Operating Lease Equipment, Net 6,604.0 5,639.8 5,649.9 7,182.4 7,186.7 7,190.6
Finance Receivables Held for Sale 645.2 1,510.3 2,014.9 2,073.9 2,624.8 2,698.4
Interest in Trade Receivables, Net 2,510.9 -- -- -- -- --
Cash & Equivalents 2,257.8 1,017.6 728.7 900.2 740.0 812.1
Goodwill, Net 2,383.4 6,857.1 6,569.5 6,101.7 1,942.1 1,964.6
Receivable from Tyco Affiliates -- 1,588.1 1,640.9 -- -- --
Other Assets 4,239.4 3,689.8 3,758.2 4,932.8 3,053.1 2,995.1
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Total Assets $44,383.5 $49,030.1 $50,681.7 $51,592.9 $48,385.4 $48,689.8
===========================================================================
Liabilities
Commercial Paper $ 709.9 $ 7,789.7 $ 8,621.5 $ 9,155.8 $ 9,662.9 $ 9,063.5
Bank Credit Facilities - Variable Rate 8,518.4 -- -- -- -- --
Senior Notes - Variable Rate 8,700.5 9,237.2 9,614.6 9,856.3 10,798.3 11,130.5
Senior Notes - Fixed Rate 15,806.1 16,702.7 17,065.5 17,646.6 17,157.0 17,571.1
Subordinated Notes - Fixed Rate -- -- 100.0 100.0 100.0 200.0
Preferred Capital Securities -- -- -- -- -- --
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Total Debt 33,734.9 33,729.6 35,401.6 36,758.7 37,718.2 37,965.1
Notes and Payables to Tyco Affiliates -- -- -- -- -- --
Credit Balance of Factoring Clients 1,543.5 2,184.2 2,392.9 1,945.3 2,131.4 2,179.9
Accrued Liabilities & Payables 2,346.5 2,005.0 2,029.2 2,403.3 2,315.2 2,287.6
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Total Liabilities 37,624.9 37,918.8 39,823.7 41,107.3 42,164.8 42,432.6
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Preferred Capital Securities 258.6 259.0 260.0 260.0 250.0 250.0
Minority Interest -- -- -- -- -- --
Stockholders' Equity
Common Stock -- -- -- -- 2.7 2.7
Paid-in Capital -- -- -- -- 3,535.9 3,527.2
Contributed Capital 10,422.4 10,441.9 10,441.9 10,159.7 -- --
Accumulated (Deficit) Earnings (3,864.0) 491.5 252.4 71.2 2,736.9 2,603.3
Accumulated Other Comprehensive (Loss)/Inc (58.4) (81.1) (96.3) (5.3) (171.8) 11.7
Treasury Stock, at Cost -- -- -- -- (133.1) (137.7)
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Total Stockholders' Equity 6,500.0 10,852.3 10,598.0 10,225.6 5,970.6 6,007.2
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Total Liabilities and Stockholders' Equity $44,383.5 $49,030.1 $50,681.7 $51,592.9 $48,385.4 $48,689.8
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Income Statement
(dollars in millions)
9/30/03 6/30/03 3/31/03 12/31/02 9/30/02 6/30/02
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Finance Income $ 921.2 $ 943.2 $ 939.2 $ 971.7 $ 1,015.2 $ 1,021.9
Interest Expense 326.5 331.1 346.7 340.0 347.8 370.2
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Net Finance Income 594.7 612.1 592.5 631.7 667.4 651.7
Depreciation on Lease Equipment 252.4 272.9 278.8 277.3 296.6 295.7
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Net Finance Margin 342.3 339.2 313.7 354.4 370.8 356.0
Provision for Credit Losses 82.9 100.6 103.0 133.4 122.7 357.7
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Net Finance Margin after Provision 259.4 238.6 210.7 221.0 248.1 (1.7)
Other Revenue(1) 220.7 217.6 235.5 257.1 209.0 246.1
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Operating Margin 480.1 456.2 446.2 478.1 457.1 244.4
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Salaries & General Operating Expenses 237.5 227.2 233.6 242.1 235.6 230.4
Goodwill Impairment -- -- -- -- -- 1,999.0
Goodwill Amortization -- -- -- -- -- --
Acquisition Related Costs -- -- -- -- -- --
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Operating Expenses 237.5 227.2 233.6 242.1 235.6 2,229.4
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Income (Loss) Before Income Taxes 242.6 229.0 212.6 236.0 221.5 (1,985.0)
Provision for Income Taxes 94.6 89.3 82.9 92.0 84.1 5.8
Minority Interest 0.2 0.1 -- -- -- --
Dividends on Preferred Capital
Securities, After Tax(2) -- 2.7 2.7 2.7 2.7 2.7
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Net Income (Loss)(3) $ 147.8 $ 136.9 $ 127.0 $ 141.3 $ 134.7 $(1,993.5)
=============================================================================
(1) Other Revenue
Fees and Other Income $ 151.5 $ 134.6 $ 144.7 $ 169.2 $ 165.7 $ 144.4
Factoring Commissions 47.6 44.8 46.9 55.1 47.7 42.0
Gains on Securitization 18.3 33.8 30.7 30.5 29.2 57.1
Gains on Sales of Leasing Equipment 14.6 16.5 17.6 8.7 2.6 4.0
Gains (Losses) on Venture Capital
Investments (11.3) (12.1) (4.4) (6.4) (36.2) (1.4)
Special Charges -- -- -- -- -- --
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Total Other Revenue $ 220.7 $ 217.6 $ 235.5 $ 257.1 $ 209.0 $ 246.1
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(2) Included in interest expense due to the adoption of SFAS 150 during the quarter ending September 30, 2003
(3) Net Income (Loss) by Segment
Specialty Finance $ 71.6 $ 63.0 $ 52.2 $ 73.7 $ 68.8 $ 83.8
Equipment Finance 9.0 7.9 10.7 13.5 7.6 31.7
Capital Finance 12.3 9.1 7.7 22.7 20.4 22.8
Commercial Finance 53.8 55.6 54.1 63.4 51.3 46.0
Structured Finance 17.1 14.7 12.2 13.9 16.4 15.3
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Total Segments 163.8 150.3 136.9 187.2 164.5 199.6
Corporate, including certain charges (16.0) (13.4) (9.9) (45.9) (29.8) (2,193.1)
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Total Net Income $ 147.8 $ 136.9 $ 127.0 $ 141.3 $ 134.7 $(1,993.5)
=============================================================================
Adjusted Net Income (Loss):
Net Income (Loss) as Reported $ 147.8 $ 136.9 $ 127.0 $ 141.3 $ 134.7 $(1,993.5)
Adjustments:
Goodwill impairment -- -- -- -- -- 1,999.0
Goodwill Amortization -- -- -- -- -- --
Reserving Actions & Other Charges -- -- -- -- -- 161.2
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Adjusted Net Income (Loss) $ 147.8 $ 136.9 $ 127.0 $ 141.3 $ 134.7 $ 166.7
=============================================================================
3/31/02 12/31/01 9/30/01 6/30/01 3/31/01 12/31/00
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Finance Income $ 1,106.7 $ 1,083.8 $ 1,258.6 $ 1,339.9 $ 1,376.8 $ 1,391.2
Interest Expense 348.3 349.1 435.3 558.8 625.7 652.2
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Net Finance Income 758.4 734.7 823.3 781.1 751.1 739.0
Depreciation on Lease Equipment 310.2 270.2 338.6 351.7 346.4 348.4
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Net Finance Margin 448.2 464.5 484.7 429.4 404.7 390.6
Provision for Credit Losses 195.0 106.0 97.5 166.7 68.3 63.8
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Net Finance Margin after Provision 253.2 358.5 387.2 262.7 336.4 326.8
Other Revenue(1) 232.1 241.2 239.2 121.8 211.6 217.3
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Operating Margin 485.3 599.7 626.4 384.5 548.0 544.1
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Salaries & General Operating Expenses 226.9 210.3 255.9 265.5 263.5 259.3
Goodwill Impairment 4,512.7 -- -- -- -- --
Goodwill Amortization -- -- 45.4 29.7 22.5 22.5
Acquisition Related Costs -- -- -- 54.0 -- --
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Operating Expenses 4,739.6 210.3 301.3 349.2 286.0 281.8
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Income (Loss) Before Income Taxes (4,254.3) 389.4 325.1 35.3 262.0 262.3
Provision for Income Taxes 98.4 148.0 140.8 39.9 98.9 99.2
Minority Interest -- -- -- -- -- --
Dividends on Preferred Capital
Securities, After Tax(2) 2.7 2.3 3.0 3.0 3.0 3.0
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Net Income (Loss)(3) $(4,355.4) $ 239.1 $ 181.3 $ (7.6) $ 160.1 $ 160.1
===========================================================================
(1) Other Revenue
Fees and Other Income $ 160.9 $ 170.0 $ 163.3 $ 117.3 $ 106.6 $ 111.6
Factoring Commissions 37.5 38.3 39.9 35.3 36.7 38.8
Gains on Securitization 34.7 28.0 25.6 34.7 37.4 40.6
Gains on Sales of Leasing Equipment 4.3 2.3 11.1 10.8 26.0 32.4
Gains (Losses) on Venture Capital
Investments (5.3) 2.6 (0.7) 1.8 4.9 (6.1)
Special Charges -- -- -- (78.1) -- --
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Total Other Revenue $ 232.1 $ 241.2 $ 239.2 $ 121.8 $ 211.6 $ 217.3
===========================================================================
(2) Included in interest expense due to the adoption of SFAS 150 during the quarter ending September 30, 2003
(3) Net Income (Loss) by Segment
Specialty Finance $ 100.0 $ 95.6 $ 66.2 $ 78.2 $ 57.5 $ 60.3
Equipment Finance 40.4 41.3 46.9 23.9 53.5 61.3
Capital Finance 22.2 26.0 14.1 25.7 26.5 26.1
Commercial Finance 46.2 51.8 42.3 44.7 43.1 44.0
Structured Finance 16.4 12.9 (20.2) 24.4 11.4 12.0
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Total Segments 225.2 227.6 149.3 196.9 192.0 203.7
Corporate, including certain charges (4,580.6) 11.5 32.0 (204.5) (31.9) (43.6)
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Total Net Income $(4,355.4) $ 239.1 $ 181.3 $ (7.6) $ 160.1 $ 160.1
===========================================================================
Adjusted Net Income (Loss):
Net Income (Loss) as Reported $(4,355.4) $ 239.1 $ 181.3 $ (7.6) $ 160.1 $ 160.1
Adjustments:
Goodwill impairment 4,512.7 -- -- -- -- --
Goodwill Amortization -- -- 45.4 27.2 19.9 19.9
Reserving Actions & Other Charges 58.9 -- -- 158.0 -- --
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Adjusted Net Income (Loss) $ 216.2 $ 239.1 $ 226.7 $ 177.6 $ 180.0 $ 180.0
===========================================================================
Reserving Actions & Other Charges (Pre-Tax)
6/30/02 - $260 million Reserve (Telecomm $200 million, Argentina $40
million, General Reserve $20 million)
3/31/02 - $ 95 million Reserve (Argentina $95 million)
6/30/01 - $222 million Charges (Underperforming Assets $90 million, Equity
Investments $78 million, Tyco Acq Costs $54 million)
Managed Asset Composition
(dollars in millions)
9/30/03 6/30/03 3/31/03 12/31/02 9/30/02 6/30/02
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Specialty Finance Segment
Commercial
Finance Receivables (1) $ 6,839.1 $ 6,975.4 $ 7,201.5 $ 5,958.1 $ 6,091.5 $ 6,154.7
Operating Lease Equipment, Net 1,043.4 1,171.2 1,227.6 1,257.3 1,353.2 1,546.9
Finance Receivables Held for Sale 754.5 622.6 899.6 764.3 528.7 216.9
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Portfolio Assets 8,637.0 8,769.2 9,328.7 7,979.7 7,973.4 7,918.5
Finance Receivables Securitized
& Managed 3,876.8 3,473.9 3,191.7 3,377.4 3,703.1 4,145.9
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Managed Assets 12,513.8 12,243.1 12,520.4 11,357.1 11,676.5 12,064.4
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Consumer
Finance Receivables - Home Equity 2,443.1 1,502.1 1,391.3 962.7 934.2 856.0
Finance Receivables - Other 896.8 934.5 995.8 1,044.4 831.8 838.7
Finance Receivables Held for Sale 150.0 395.0 210.0 330.0 380.0 396.5
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Portfolio Assets 3,489.9 2,831.6 2,597.1 2,337.1 2,146.0 2,091.2
Finance Receivables Securitized
& Managed - Home Equity 2,064.9 2,276.7 2,358.6 2,213.6 2,115.9 2,035.9
Finance Receivables Securitized
& Managed - Other 694.8 786.0 860.2 955.2 1,031.6 1,127.9
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Managed Assets 6,249.6 5,894.3 5,815.9 5,505.9 5,293.5 5,255.0
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Equipment Finance Segment
Finance Receivables (1) 6,157.5 6,014.6 6,237.4 7,357.8 7,522.2 7,770.8
Operating Lease Equipment, Net 461.7 504.0 527.4 668.3 765.8 818.6
Finance Receivables Held for Sale 113.4 192.4 163.4 119.1 110.8 117.4
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Portfolio Assets 6,732.6 6,711.0 6,928.2 8,145.2 8,398.8 8,706.8
Finance Receivables Securitized & Managed 3,504.5 3,819.9 3,977.2 3,936.2 4,384.1 4,658.2
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Managed Assets 10,237.1 10,530.9 10,905.4 12,081.4 12,782.9 13,365.0
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Capital Finance Segment
Finance Receivables 1,208.9 1,185.2 1,223.7 1,335.8 1,479.5 1,530.2
Operating Lease Equipment, Net 5,859.4 5,783.2 4,973.0 4,719.9 4,388.9 4,262.4
Finance Receivables Held for Sale -- -- -- -- -- --
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Portfolio Assets 7,068.3 6,968.4 6,196.7 6,055.7 5,868.4 5,792.6
Finance Receivables Securitized & Managed -- -- -- -- -- --
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Managed Assets 7,068.3 6,968.4 6,196.7 6,055.7 5,868.4 5,792.6
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Commercial Finance Segment
Commercial Services
Finance Receivables 5,697.8 4,766.3 4,726.1 4,392.5 5,040.4 4,536.4
Finance Receivables Securitized
and Managed -- -- -- -- -- --
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Managed Assets 5,697.8 4,766.3 4,726.1 4,392.5 5,040.4 4,536.4
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Business Credit
Finance Receivables 4,173.3 4,147.1 3,956.6 3,649.1 3,869.8 3,644.1
Finance Receivables Securitized
& Managed -- -- -- -- -- --
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Managed Assets 4,173.3 4,147.1 3,956.6 3,649.1 3,869.8 3,644.1
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Structured Finance Segment
Finance Receivables 2,926.1 2,888.4 2,922.2 2,920.9 2,689.6 2,594.5
Operating Lease Equipment, Net 120.8 101.6 103.4 59.1 59.5 61.8
Finance Receivables Held for Sale -- -- -- -- -- --
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Portfolio Assets 3,046.9 2,990.0 3,025.6 2,980.0 2,749.1 2,656.3
Finance Receivables Securitized & Managed -- -- -- -- -- --
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Managed Assets 3,046.9 2,990.0 3,025.6 2,980.0 2,749.1 2,656.3
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Corporate - Equity Investments 313.9 325.4 334.3 335.4 341.7 362.5
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Total
Finance Receivables $30,342.6 $28,413.6 $28,654.6 $27,621.3 $28,459.0 $27,925.4
Operating Lease Equipment, Net 7,485.3 7,560.0 6,831.4 6,704.6 6,567.4 6,689.7
Finance Receivables Held For Sale 1,017.9 1,210.0 1,273.0 1,213.4 1,019.5 730.8
Equity Investments (Included in Other Assets) 313.9 325.4 334.3 335.4 341.7 362.5
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Portfolio Assets 39,159.7 37,509.0 37,093.3 35,874.7 36,387.6 35,708.4
Finance Receivables Securitized & Managed 10,141.0 10,356.5 10,387.7 10,482.4 11,234.7 11,967.9
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Managed Assets $49,300.7 $47,865.5 $47,481.0 $46,357.1 $47,622.3 $47,676.3
=============================================================================
3/31/02 12/31/01 9/30/01 6/30/01 3/31/01 12/31/00
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Specialty Finance Segment
Commercial
Finance Receivables (1) $ 6,288.6 $ 5,485.7 $ 5,553.6 $ 6,370.2 $ 7,014.6 $ 6,028.7
Operating Lease Equipment, Net 1,717.4 1,313.8 1,167.7 1,915.9 1,978.9 1,256.5
Finance Receivables Held for Sale 513.2 319.3 258.4 320.3 822.2 835.9
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Portfolio Assets 8,519.2 7,118.8 6,979.7 8,606.4 9,815.7 8,121.1
Finance Receivables Securitized
& Managed 4,167.4 4,337.4 4,023.2 4,192.2 4,023.3 2,688.7
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Managed Assets 12,686.6 11,456.2 11,002.9 12,798.6 13,839.0 10,809.8
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Consumer
Finance Receivables - Home Equity 1,553.4 2,640.1 2,410.2 2,245.5 2,229.4 2,201.0
Finance Receivables - Other 864.9 475.3 663.5 535.2 1,969.1 1,992.5
Finance Receivables Held for Sale -- 660.5 1,129.7 1,023.3 1,127.8 1,006.5
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Portfolio Assets 2,418.3 3,775.9 4,203.4 3,804.0 5,326.3 5,200.0
Finance Receivables Securitized
& Managed - Home Equity 1,619.9 230.8 252.2 276.1 307.2 327.0
Finance Receivables Securitized
& Managed - Other 1,216.5 1,309.6 1,407.7 1,498.5 1,627.5 1,713.4
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Managed Assets 5,254.7 5,316.3 5,863.3 5,578.6 7,261.0 7,240.4
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Equipment Finance Segment
Finance Receivables (1) 8,999.5 9,191.9 9,668.9 10,057.3 10,309.8 11,925.3
Operating Lease Equipment, Net 872.8 931.6 1,281.7 1,430.0 1,520.8 2,280.7
Finance Receivables Held for Sale 132.0 186.9 113.1 155.8 87.1 228.4
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Portfolio Assets 10,004.3 10,310.4 11,063.7 11,643.1 11,917.7 14,434.4
Finance Receivables Securitized & Managed 3,752.5 4,564.4 4,464.8 4,608.3 4,582.4 6,387.2
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Managed Assets 13,756.8 14,874.8 15,528.5 16,251.4 16,500.1 20,821.6
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Capital Finance Segment
Finance Receivables 1,534.6 1,629.3 1,773.2 1,895.4 1,894.6 2,049.0
Operating Lease Equipment, Net 3,950.3 3,350.1 3,155.5 3,780.3 3,632.1 3,594.6
Finance Receivables Held for Sale -- -- -- -- -- --
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Portfolio Assets 5,484.9 4,979.4 4,928.7 5,675.7 5,526.7 5,643.6
Finance Receivables Securitized & Managed -- -- -- -- -- --
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Managed Assets 5,484.9 4,979.4 4,928.7 5,675.7 5,526.7 5,643.6
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Commercial Finance Segment
Commercial Services
Finance Receivables 756.1 4,300.8 5,099.4 4,182.3 4,434.3 4,277.9
Finance Receivables Securitized
and Managed 3,432.4 -- -- -- -- --
---------------------------------------------------------------------------
Managed Assets 4,188.5 4,300.8 5,099.4 4,182.3 4,434.3 4,277.9
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Business Credit
Finance Receivables 3,680.6 3,541.0 3,544.9 3,593.7 3,561.0 3,415.8
Finance Receivables Securitized
& Managed -- -- -- -- -- --
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Managed Assets 3,680.6 3,541.0 3,544.9 3,593.7 3,561.0 3,415.8
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Structured Finance Segment
Finance Receivables 2,620.0 1,935.4 2,167.5 2,040.7 1,919.3 1,719.7
Operating Lease Equipment, Net 63.5 44.3 45.0 56.2 54.9 58.8
Finance Receivables Held for Sale -- 343.6 513.7 574.5 587.7 627.6
---------------------------------------------------------------------------
Portfolio Assets 2,683.5 2,323.3 2,726.2 2,671.4 2,561.9 2,406.1
Finance Receivables Securitized & Managed -- -- -- -- -- --
---------------------------------------------------------------------------
Managed Assets 2,683.5 2,323.3 2,726.2 2,671.4 2,561.9 2,406.1
---------------------------------------------------------------------------
Corporate - Equity Investments 352.2 338.2 342.2 336.2 309.4 285.8
---------------------------------------------------------------------------
Total
Finance Receivables $26,297.7 $29,199.5 $30,881.2 $30,920.3 $33,332.1 $33,609.9
Operating Lease Equipment, Net 6,604.0 5,639.8 5,649.9 7,182.4 7,186.7 7,190.6
Finance Receivables Held For Sale 645.2 1,510.3 2,014.9 2,073.9 2,624.8 2,698.4
Equity Investments (Included in Other Assets) 352.2 338.2 342.2 336.2 309.4 285.8
---------------------------------------------------------------------------
Portfolio Assets 33,899.1 36,687.8 38,888.2 40,512.8 43,453.0 43,784.7
Finance Receivables Securitized & Managed 14,188.7 10,442.2 10,147.9 10,575.1 10,540.4 11,116.3
---------------------------------------------------------------------------
Managed Assets $48,087.8 $47,130.0 $49,036.1 $51,087.9 $53,993.4 $54,901.0
===========================================================================
(1) During the March 2003 quarter, certain owned finance receivables totaling
$1,078.6 million at March 31, 2003 were transferred from Equipment Financing to
Specialty Finance - commercial. Prior period data has not been conformed to
present period presentation.
Credit Metrics *
(dollars in millions)
9/30/03 6/30/03 3/31/03
$ % $ % $ %
------------------ ------------------ ------------------
Credit Losses by Business Segment
Specialty Finance - Commercial(1) $ 25.6 1.47% $ 23.9 1.33% $ 31.0 1.73%
Equipment Finance(1) 23.1 1.52% 38.6 2.51% 38.1 2.39%
Capital Finance -- 0.00% -- 0.00% 1.8 0.55%
Commercial Finance 19.7 0.84% 21.3 0.96% 16.6 0.80%
Structured Finance 9.2 1.28% 8.6 1.18% 13.8 1.90%
-------- -------- --------
Total Commercial 77.6 1.17% 92.4 1.40% 101.3 1.55%
Specialty Finance - Consumer 13.0 1.80% 16.0 2.62% 13.0 2.36%
-------- -------- --------
Total $ 90.6 1.23% $ 108.4 1.51% $ 114.3 1.61%
-------- -------- --------
Fin Rec Past Due 60 days or more - Owned
Specialty Finance - Commercial(1) $ 245.9 3.60% $ 249.6 3.58% $ 264.7 3.68%
Equipment Finance(1) 206.3 3.35% 253.0 4.21% 292.5 4.69%
Capital Finance 60.5 5.00% 99.2 8.37% 74.0 6.05%
Commercial Finance 130.2 1.32% 130.5 1.46% 152.8 1.76%
Structured Finance 82.8 2.83% 65.7 2.27% 55.2 1.89%
-------- -------- --------
Total Commercial 725.7 2.69% 798.0 3.07% 839.2 3.19%
Specialty Finance - Consumer 137.7 4.12% 128.1 5.26% 132.0 5.53%
-------- -------- --------
Total $ 863.4 2.85% $ 926.1 3.26% $ 971.2 3.39%
-------- -------- --------
Non-Performing Assets - Owned
Specialty Finance - Commercial(1) $ 132.7 1.94% $ 140.0 2.01% $ 160.4 2.23%
Equipment Finance(1) 283.7 4.61% 337.8 5.62% 338.5 5.43%
Capital Finance 54.7 4.52% 83.1 7.01% 86.9 7.10%
Commercial Finance 108.0 1.09% 107.4 1.20% 128.0 1.47%
Structured Finance 141.6 4.84% 133.9 4.64% 143.4 4.91%
-------- -------- --------
Total Commercial 720.7 2.67% 802.2 3.09% 857.2 3.26%
Specialty Finance - Consumer 146.1 4.37% 139.0 5.70% 149.2 6.25%
-------- -------- --------
Total $ 866.8 2.86% $ 941.2 3.31% $1,006.4 3.51%
-------- -------- --------
Fin Rec Past Due 60 days or more - Managed
Specialty Finance - Commercial(1) $ 332.4 2.90% $ 318.5 2.88% $ 343.0 3.04%
Equipment Finance(1) 332.7 3.40% 395.5 3.94% 466.7 4.50%
Capital Finance 60.5 5.00% 99.2 8.37% 74.0 6.05%
Commercial Finance 130.1 1.32% 130.5 1.46% 152.8 1.76%
Structured Finance 82.8 2.83% 65.7 2.27% 55.2 1.89%
-------- -------- --------
Total Commercial 938.5 2.66% 1,009.4 2.96% 1,091.7 3.16%
Specialty Finance - Consumer 283.9 4.54% 268.4 4.55% 269.6 4.64%
-------- -------- --------
Total $1,222.4 2.95% $1,277.8 3.20% $1,361.3 3.38%
-------- -------- --------
12/31/02 9/30/02 6/30/02
$ % $ % $ %
------------------ ------------------ ------------------
Credit Losses by Business Segment
Specialty Finance - Commercial(1) $ 23.2 1.55% $ 18.8 1.22% $ 21.2 1.36%
Equipment Finance(1) 69.8 3.78% 70.7 3.71% 64.9 3.09%
Capital Finance 1.3 0.37% 0.1 0.03% 0.0 0.00%
Commercial Finance 33.5 1.92% 22.4 1.06% 29.0 1.61%
Structured Finance 15.5 2.24% 18.4 2.78% 0.0 0.00%
-------- -------- --------
Total Commercial 143.3 2.33% 130.4 1.98% 115.1 1.78%
Specialty Finance - Consumer 11.2 2.24% 10.6 2.17% 10.9 1.86%
-------- -------- --------
Total $ 154.5 2.32% $ 141.0 1.99% $ 126.0 1.79%
-------- -------- --------
Fin Rec Past Due 60 days or more - Owned
Specialty Finance - Commercial(1) $ 182.9 3.07% $ 215.4 3.54% $ 250.3 4.06%
Equipment Finance(1) 359.3 4.88% 350.7 4.66% 370.5 4.77%
Capital Finance 85.5 6.40% 101.5 6.86% 36.8 2.40%
Commercial Finance 172.3 2.14% 209.4 2.35% 195.3 2.39%
Structured Finance 67.6 2.31% 65.8 2.45% 44.9 1.73%
-------- -------- --------
Total Commercial 867.6 3.39% 942.8 3.53% 897.8 3.42%
Specialty Finance - Consumer 133.7 6.66% 127.2 7.20% 132.4 7.81%
-------- -------- --------
Total $1,001.3 3.63% $1,070.0 3.76% $1,030.2 3.69%
-------- -------- --------
Non-Performing Assets - Owned
Specialty Finance - Commercial(1) $ 98.2 1.65% $ 103.1 1.69% $ 125.7 2.04%
Equipment Finance(1) 403.5 5.48% 470.0 6.25% 484.5 6.23%
Capital Finance 154.9 11.60% 78.5 5.31% 25.5 1.67%
Commercial Finance 136.2 1.69% 176.1 1.98% 143.2 1.75%
Structured Finance 151.6 5.19% 172.2 6.40% 128.3 4.95%
-------- -------- --------
Total Commercial 944.4 3.69% 999.9 3.75% 907.2 3.46%
Specialty Finance - Consumer 141.4 7.04% 139.9 7.92% 145.4 8.58%
-------- -------- --------
Total $1,085.8 3.93% $1,139.8 4.01% $1,052.6 3.77%
-------- -------- --------
Fin Rec Past Due 60 days or more - Managed
Specialty Finance - Commercial(1) $ 265.1 2.62% $ 303.3 2.94% $ 331.7 3.15%
Equipment Finance(1) 545.7 4.78% 609.1 5.07% 680.6 5.42%
Capital Finance 85.5 6.40% 101.5 6.86% 36.8 2.40%
Commercial Finance 172.3 2.14% 209.4 2.35% 195.3 2.39%
Structured Finance 67.6 2.31% 65.8 2.45% 44.9 1.73%
-------- -------- --------
Total Commercial 1,136.2 3.36% 1,289.1 3.64% 1,289.3 3.65%
Specialty Finance - Consumer 259.4 4.71% 249.5 4.71% 230.8 4.39%
-------- -------- --------
Total $1,395.6 3.55% $1,538.6 3.78% $1,520.1 3.74%
-------- -------- --------
3/31/02 12/31/01 9/30/01
$ % $ % $ %
------------------ ------------------ ------------------
Credit Losses by Business Segment
Specialty Finance - Commercial(1) $ 19.6 1.21% $ 11.7 0.84% $ 12.1 0.75%
Equipment Finance(1) 61.1 2.65% 62.1 2.58% 33.9 1.35%
Capital Finance 0.0 0.00% 0.0 0.00% 0.0 0.00%
Commercial Finance 20.2 1.36% 16.6 0.80% 10.3 0.51%
Structured Finance 0.1 0.01% 0.0 0.00% (2.1) -0.40%
-------- -------- --------
Total Commercial 101.0 1.59% 90.4 1.32% 54.2 0.76%
Specialty Finance - Consumer 11.4 1.51% 13.4 1.70% 14.1 1.91%
-------- -------- --------
Total $ 112.4 1.58% $ 103.8 1.36% $ 68.3 0.87%
-------- -------- --------
Fin Rec Past Due 60 days or more - Owned
Specialty Finance - Commercial(1) $ 287.3 4.55% $ 213.8 3.90% $ 188.5 3.39%
Equipment Finance(1) 410.9 4.57% 423.4 4.61% 416.2 4.30%
Capital Finance 52.1 3.40% 48.4 2.97% 50.3 2.85%
Commercial Finance 224.7 2.86% 197.7 2.52% 151.4 1.75%
Structured Finance 39.0 1.49% 37.7 1.95% 38.3 1.83%
-------- -------- --------
Total Commercial 1,014.0 3.71% 921.0 3.53% 844.7 3.05%
Specialty Finance - Consumer 144.1 5.96% 183.1 4.85% 188.2 4.48%
-------- -------- --------
Total $1,158.1 3.90% $1,104.1 3.78% $1,032.9 3.35%
-------- -------- --------
Non-Performing Assets - Owned
Specialty Finance - Commercial(1) $ 140.1 2.22% $ 112.3 2.05% $ 87.0 1.57%
Equipment Finance(1) 445.0 4.94% 397.0 4.32% 362.2 3.75%
Capital Finance 27.3 1.78% 24.0 1.47% 95.1 5.40%
Commercial Finance 138.5 1.76% 144.6 1.84% 105.6 1.22%
Structured Finance 81.8 3.12% 92.2 4.76% 110.0 5.27%
-------- -------- --------
Total Commercial 832.7 3.05% 770.1 2.95% 759.9 2.74%
Specialty Finance - Consumer 155.7 6.44% 170.3 4.51% 169.4 4.03%
-------- -------- --------
Total $ 988.4 3.32% $ 940.4 3.22% $ 929.3 3.02%
-------- -------- --------
Fin Rec Past Due 60 days or more - Managed
Specialty Finance - Commercial(1) $ 401.1 3.66% $ 339.7 3.35% $ 315.4 3.21%
Equipment Finance(1) 726.4 5.64% 742.2 5.32% 760.2 5.34%
Capital Finance 52.1 3.40% 48.4 2.97% 50.3 2.84%
Commercial Finance 224.7 2.86% 197.7 2.52% 151.4 1.75%
Structured Finance 39.0 1.49% 37.7 1.65% 38.3 1.43%
-------- -------- --------
Total Commercial 1,443.3 4.02% 1,365.7 3.81% 1,315.6 3.54%
Specialty Finance - Consumer 237.0 4.51% 256.1 4.82% 253.2 4.32%
-------- -------- --------
Total $1,680.3 4.09% $1,621.8 3.47% $1,568.8 3.22%
-------- -------- --------
6/30/01 3/31/01 12/31/00
$ % $ % $ %
------------------ ------------------ ------------------
Credit Losses by Business Segment
Specialty Finance - Commercial(1) $ 30.9 1.80% $ 18.5 1.04% $ 11.0 0.72%
Equipment Finance(1) 26.5 1.03% 22.0 0.83% 24.4 0.78%
Capital Finance 0.3 0.07% 0.0 0.00% 0.0 0.00%
Commercial Finance 21.7 1.10% 7.0 0.36% 11.4 0.56%
Structured Finance 62.8 12.75% 4.1 0.89% 0.0 0.00%
-------- -------- --------
Total Commercial 142.2 1.97% 51.6 0.71% 46.8 0.63%
Specialty Finance - Consumer 14.6 1.47% 15.1 1.42% 13.3 1.25%
-------- -------- --------
Total $ 156.8 1.91% $ 66.7 0.80% $ 60.1 0.70%
-------- -------- --------
Fin Rec Past Due 60 days or more - Owned
Specialty Finance - Commercial(1) $ 278.7 4.38% $ 283.1 4.04% $ 184.9 3.07%
Equipment Finance(1) 392.7 3.90% 349.6 3.39% 379.5 3.18%
Capital Finance 34.9 1.90% 27.5 1.48% 20.3 1.05%
Commercial Finance 125.5 1.62% 105.0 1.31% 107.9 1.40%
Structured Finance 91.0 4.46% 117.7 6.13% 96.2 5.59%
-------- -------- --------
Total Commercial 922.8 3.29% 882.9 3.03% 788.8 2.69%
Specialty Finance - Consumer 165.9 5.97% 199.7 4.76% 211.1 5.03%
-------- -------- --------
Total $1,088.7 3.53% $1,082.6 3.25% $ 999.9 2.98%
-------- -------- --------
Non-Performing Assets - Owned
Specialty Finance - Commercial(1) $ 146.1 2.29% $ 163.6 2.33% $ 93.9 1.56%
Equipment Finance(1) 329.2 3.27% 320.3 3.11% 345.4 2.90%
Capital Finance 27.1 1.47% 28.9 1.55% 5.6 0.29%
Commercial Finance 73.4 0.94% 67.9 0.85% 65.3 0.85%
Structured Finance 109.0 5.34% 130.0 6.77% 118.6 6.90%
-------- -------- --------
Total Commercial 684.8 2.44% 710.7 2.44% 628.8 2.15%
Specialty Finance - Consumer 165.2 5.94% 187.6 4.47% 199.3 4.75%
-------- -------- --------
Total $ 850.0 2.75% $ 898.3 2.70% $ 828.1 2.47%
-------- -------- --------
Fin Rec Past Due 60 days or more - Managed
Specialty Finance - Commercial(1) $ 390.2 3.59% $ 425.9 3.59% $ 424.3 4.44%
Equipment Finance(1) 741.3 5.00% 703.1 4.69% 641.0 3.46%
Capital Finance 34.9 1.84% 27.5 1.45% 20.3 0.99%
Commercial Finance 125.5 1.61% 107.7 1.35% 113.3 1.47%
Structured Finance 91.0 3.48% 117.7 4.69% 96.2 4.10%
-------- -------- --------
Total Commercial 1,382.9 3.64% 1,381.9 3.52% 1,295.1 3.22%
Specialty Finance - Consumer 230.9 4.14% 263.5 3.63% 264.0 3.65%
-------- -------- --------
Total $1,613.8 3.70% $1,645.4 3.54% $1,559.1 3.29%
-------- -------- --------
* Data as of or for the quarter ending, as applicable.
(1) During the March 2003 quarter, certain portfolios were tranferred from
Equipment Financing and Leasing to Specialty Finance - Commercial. Prior
period balances have not been restated to reflect change.
Selected Data & Ratios *
(dollars in millions)
9/30/03 6/30/03 3/31/03 12/31/02 9/30/02 6/30/02
-----------------------------------------------------------------------------
Average Balances:
Average Finance Receivables (AFR) $29,431.3 $28,766.5 $28,328.8 $26,586.6 $28,325.8 $28,157.7
Average Earning Assets (AEA) 36,072.4 35,700.0 34,600.6 32,693.2 33,959.4 34,670.1
Average Managed Assets (AMA) 46,052.0 45,764.8 44,967.8 44,361.8 45,356.5 45,734.3
Average Operating Leases (AOL) 7,458.9 7,304.2 6,712.6 6,605.0 6,615.0 6,657.1
Average Tangible Common Equity (ATE) 4,834.6 4,731.6 4,632.7 4,532.5 4,383.9 4,167.8
Profitability
Net Finance Margin as percentage of AEA 3.80% 3.80% 3.63% 4.34% 4.37% 4.11%
Net Finance Margin after Provision
as percentage of AEA 2.88% 2.67% 2.44% 2.70% 2.92% -0.02%
Salaries & general operating expenses
as percentage of AMA 2.06% 1.99% 2.08% 2.18% 2.08% 2.02%
Efficiency Ratio 42.2% 40.8% 42.5% 39.6% 40.6% 38.3%
Return on Average Tangible
Common Equity (ROTE) 12.2% 11.6% 11.0% 12.5% 12.3% -191.3%
Return on Average Managed Assets (ROMA) 1.28% 1.20% 1.13% 1.27% 1.19% -17.44%
Return on AEA (by segment)
Specialty Finance 2.34% 2.07% 1.75% 2.86% 2.66% 3.12%
Equipment Finance 0.53% 0.46% 0.60% 0.65% 0.35% 1.35%
Capital Finance 0.69% 0.54% 0.50% 1.50% 1.38% 1.59%
Commercial Finance 3.22% 3.44% 3.58% 5.18% 3.40% 3.20%
Structured Finance 2.29% 1.95% 1.63% 1.97% 2.42% 2.31%
-----------------------------------------------------------------------------
Total Segments 1.83% 1.70% 1.60% 2.32% 1.96% 2.33%
Corporate, including certain charges -0.19% -0.17% -0.13% -0.59% -0.37% -25.33%
-----------------------------------------------------------------------------
Total 1.64% 1.53% 1.47% 1.73% 1.59% -23.00%
-----------------------------------------------------------------------------
Capital & Leverage
Tangible Equity to Managed Assets(1) 10.44% 10.53% 10.42% 10.44% 9.93% 9.25%
Debt (net of overnight deposits)
to Tangible Equity(1) 6.22x 6.28x 6.29x 6.22x 6.54x 7.07x
Number of Shares - Basic 211,735 211,590 211,573 211,573 211,573
Number of Shares - Dilluted 213,529 212,066 211,899 211,826 211,695
Securitization Volume
Commercial - Vendor $ 936.0 $ 1,201.0 $ 409.3 $ 590.6 $ 410.5 $ 782.4
Commercial - Equipment 381.5 329.4 461.0 310.6 305.5 1,170.4
Consumer -- 122.1 367.1 288.1 264.0 785.9
-----------------------------------------------------------------------------
Total $ 1,317.5 $ 1,652.5 $ 1,237.4 $ 1,189.3 $ 980.0 $ 2,738.7
-----------------------------------------------------------------------------
3/31/02 12/31/01 9/30/01 6/30/01 3/31/01 12/31/00
---------------------------------------------------------------------------
Average Balances:
Average Finance Receivables (AFR) $28,487.3 $30,562.5 $31,353.7 $32,767.2 $33,395.4 $34,245.7
Average Earning Assets (AEA) 36,006.6 35,695.0 38,735.7 41,014.8 41,635.3 41,669.0
Average Managed Assets (AMA) 46,896.5 45,769.9 48,888.0 50,927.3 51,961.8 52,628.7
Average Operating Leases (AOL) 6,544.7 5,644.9 7,031.2 7,196.7 7,150.8 7,048.2
Average Tangible Common Equity (ATE) 4,085.1 4,112.9 4,184.0 4,164.8 4,102.4 3,930.2
Profitability
Net Finance Margin as percentage of AEA 4.98% 5.21% 5.01% 4.19% 3.89% 3.75%
Net Finance Margin after Provision
as percentage of AEA 2.81% 4.02% 4.00% 2.56% 3.23% 3.14%
Salaries & general operating expenses
as percentage of AMA 1.93% 1.84% 2.09% 2.09% 2.03% 1.97%
Efficiency Ratio 33.4% 29.8% 35.4% 48.2% 43.1% 42.7%
Return on Average Tangible
Common Equity (ROTE) -426.5% 23.3% 17.3% -0.7% 15.6% 16.3%
Return on Average Managed Assets (ROMA) -37.15% 2.09% 1.48% -0.06% 1.23% 1.22%
Return on AEA (by segment)
Specialty Finance 3.20% 2.96% 2.07% 2.10% 1.49% 1.82%
Equipment Finance 1.56% 1.35% 1.62% 0.80% 1.75% 1.64%
Capital Finance 1.64% 1.96% 1.02% 1.83% 1.89% 1.90%
Commercial Finance 3.72% 3.48% 2.93% 3.12% 3.05% 3.14%
Structured Finance 2.53% 2.62% -2.98% 3.80% 1.84% 2.27%
---------------------------------------------------------------------------
Total Segments 2.51% 2.41% 1.56% 1.93% 1.86% 1.97%
Corporate, including certain charges -50.89% 0.14% 0.31% -2.01% -0.32% -0.43%
---------------------------------------------------------------------------
Total -48.38% 2.55% 1.87% -0.07% 1.54% 1.54%
---------------------------------------------------------------------------
Capital & Leverage
Tangible Equity to Managed Assets(1) 9.12% 9.17% 8.87% 8.62% 8.23% 7.82%
Debt (net of overnight deposits)
to Tangible Equity(1) 7.32x 7.66x 8.06x 8.31x 8.41x 8.78x
Number of Shares - Basic 260,629 261,142
Number of Shares - Dilluted 264,265 262,697
Securitization Volume
Commercial - Vendor $ 673.2 $ 735.8 $ 484.7 $ 851.5 $ 652.1 $ 730.7
Commercial - Equipment 364.0 488.0 407.7 453.0 444.3 473.5
Consumer 1,688.7 -- -- -- -- --
---------------------------------------------------------------------------
Total $ 2,725.9 $ 1,223.8 $ 892.4 $ 1,304.5 $ 1,096.4 $ 1,204.2
---------------------------------------------------------------------------
(1) See Non-GAAP Disclosures
* Data as of or for the quarter ending, as applicable.
Non-GAAP Disclosures
(dollars in millions)
9/30/03 6/30/03 3/31/03 12/31/02 9/30/02 6/30/02
----------------------------------------------------------------------------
Managed assets (1):
Finance receivables $30,342.6 $28,413.6 $28,654.6 $27,621.3 $28,459.0 $27,925.4
Operating lease equipment, net 7,485.3 7,560.0 6,831.4 6,704.6 6,567.4 6,689.7
Finance receivables held for sale 1,017.9 1,210.0 1,273.0 1,213.4 1,019.5 730.8
Equity and venture capital investments
(included in other assets) 313.9 325.4 334.3 335.4 341.7 362.5
----------------------------------------------------------------------------
Total financing and leasing portfolio assets 39,159.7 37,509.0 37,093.3 35,874.7 36,387.6 35,708.4
Securitized assets 10,141.0 10,356.5 10,387.7 10,482.4 11,234.7 11,967.9
----------------------------------------------------------------------------
Managed assets $49,300.7 $47,865.5 $47,481.0 $46,357.1 $47,622.3 $47,676.3
============================================================================
Earning assets(2):
Total financing and leasing portfolio assets $39,159.7 $37,509.0 $37,093.3 $35,874.7 $36,387.6 $35,708.4
Credit balances of factoring clients (3,103.0) (2,471.6) (2,437.9) (2,270.0) (2,513.8) (1,980.0)
----------------------------------------------------------------------------
Earning assets $36,056.7 $35,037.4 $34,655.4 $33,604.7 $33,873.8 $33,728.4
============================================================================
Tangible stockholders' equity(3):
Total equity $ 5,180.9 $ 5,057.6 $ 4,996.6 $ 4,870.7 $ 4,757.8 $ 4,514.3
Other comprehensive loss relating
to derivative financial instruments 106.9 122.1 92.6 118.3 120.5 43.2
Unrealized (gain) loss on
securitization investments (8.0) (7.9) (12.5) (20.5) (23.6) (18.6)
Goodwill (388.7) (389.8) (384.4) (384.4) (384.4) (384.4)
----------------------------------------------------------------------------
Tangible common equity 4,891.1 4,782.0 4,692.3 4,584.1 4,470.3 4,154.5
Preferred capital securities 255.9 256.4 256.8 257.2 257.7 258.1
----------------------------------------------------------------------------
Tangible equity $ 5,147.0 $ 5,038.4 $ 4,949.1 $ 4,841.3 $ 4,728.0 $ 4,412.6
============================================================================
Debt, net of overnight deposits(4):
Total debt $34,012.1 $32,430.8 $32,551.8 $31,681.3 $32,456.0 $32,623.1
Overnight deposits (1,722.9) (781.3) (1,432.5) (1,578.7) (1,550.6) (1,448.1)
Preferred capital securities (255.9) -- -- -- -- --
----------------------------------------------------------------------------
Debt, net of overnight deposits $32,033.3 $31,649.5 $31,119.3 $30,102.6 $30,905.4 $31,175.0
============================================================================
3/31/02 12/31/01 9/30/01 6/30/01 3/31/01 12/31/00
----------------------------------------------------------------------------
Managed assets (1):
Finance receivables $26,297.7 $29,199.5 $30,881.2 $30,920.3 $33,332.1 $33,609.9
Operating lease equipment, net 6,604.0 5,639.8 5,649.9 7,182.4 7,186.7 7,190.6
Finance receivables held for sale 645.2 1,510.3 2,014.9 2,073.9 2,624.8 2,698.4
Equity and venture capital investments
(included in other assets) 352.2 338.2 342.2 336.2 309.4 285.8
----------------------------------------------------------------------------
Total financing and leasing portfolio assets 33,899.1 36,687.8 38,888.2 40,512.8 43,453.0 43,784.7
Securitized assets 14,188.7 10,442.2 10,147.9 10,575.1 10,540.4 11,116.3
----------------------------------------------------------------------------
Managed assets $48,087.8 $47,130.0 $49,036.1 $51,087.9 $53,993.4 $54,901.0
============================================================================
Earning assets(2):
Total financing and leasing portfolio assets $33,899.1 $36,687.8 $38,888.2 $40,512.8 $43,453.0 $43,784.7
Credit balances of factoring clients (1,543.5) (2,184.2) (2,392.9) (1,945.3) (2,131.4) (2,179.9)
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Earning assets $32,355.6 $34,503.6 $36,495.3 $38,567.5 $41,321.6 $41,604.8
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Tangible stockholders' equity(3):
Total equity $ 6,500.0 $10,852.3 $10,598.0 $10,225.6 $ 5,970.6 $ 6,007.2
Other comprehensive loss relating
to derivative financial instruments 32.9 52.7 63.4 18.3 165.2 --
Unrealized (gain) loss on
securitization investments (21.7) 13.9 -- -- 0.2 --
Goodwill (2,383.4) (6,857.1) (6,569.5) (6,101.7) (1,942.1) (1,964.6)
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Tangible common equity 4,127.8 4,061.8 4,091.9 4,142.2 4,193.9 4,042.6
Preferred capital securities 258.6 259.0 260.0 260.0 250.0 250.0
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Tangible equity $ 4,386.4 $ 4,320.8 $ 4,351.9 $ 4,402.2 $ 4,443.9 $ 4,292.6
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Debt, net of overnight deposits(4):
Total debt $33,734.9 $33,729.6 $35,401.6 $36,758.7 $37,718.2 $37,965.1
Overnight deposits (1,629.7) (631.1) (333.4) (191.0) (324.2) (283.2)
Preferred capital securities -- -- -- -- -- --
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Debt, net of overnight deposits $32,105.2 $33,098.5 $35,068.2 $36,567.7 $37,394.0 $37,681.9
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Non-GAAP financial measures disclosed by management are meant to provide
additional information and insight relative to trends in the business to
investors and, in certain cases, to present financial information as measured by
rating agencies and other users of financial information. These measures are not
in accordance with, or a substitute for, GAAP and may be different from, or
inconsistent with, non-GAAP financial measures used by other companies.
(1) Managed assets are utilized in certain credit and expense ratios.
Securitized assets are included in managed assets because CIT retains
certain credit risk and the servicing related to assets that are funded
through securitizations.
(2) Earning assets are utilized in certain revenue and earnings ratios.
Earning assets are net of credit balances of factoring clients. This net
amount, which corresponds to amounts funded, is a basis for revenues
earned.
(3) Tangible equity is utilized in leverage ratios, and is consistent with
certain rating agency measurements. Other comprehensive losses and
unrealized gains on securitization investments (both included in the
separate component of equity) are excluded from the calculation, as these
amounts are not necessarily indicative of amounts which will be realized.
(4) Debt, net of overnight deposits is utilized in certain leverage ratios.
Overnight deposits are excluded from these calculations, as these amounts
correspond to excess liquidity retained by the Company to pay debt.
Overnight deposits are reflected in both debt and cash & cash equivalents.
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Impact of TCH Transactions
(dollars in millions)
6/30/02 3/31/02 12/31/01 9/30/01 6/30/01
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Net Income, excluding TCH $(1,993.5) $(4,355.4) $ 239.1 $ 181.3 $ (7.6)
Effect of TCH transactions, net of tax(5) (404.3) (264.3) (54.9) (52.7) (17.8)
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Net Income, GAAP basis $(2,397.8) $(4,619.7) $ 184.2 $ 128.6 $ (25.4)
==============================================================
Profitability Ratios (Including effect of TCH transactions)
Salaries & general operating expenses as a percentage of AMA 2.08% 2.00% 2.01% 2.15% 2.10%
Efficiency Ratio 39.5% 34.4% 31.0% 36.3% 48.6%
Return on Average Tangible Common Equity (ROTE) (230.9)% (447.7)% 18.1% 12.6% (2.5)%
Return on Average Managed Assets (ROMA) (20.97)% (39.40)% 1.61% 1.05% (0.20)%
(5) TCH was a wholly-owned subsidiary of a Tyco affiliate domiciled in Bermuda
and was the holding company for the acquisition of CIT by Tyco, which
included an outstanding loan from and related interest expense payable to
an affiliate of Tyco. Immediately prior to the IPO of CIT on July 8, 2002,
the prior activity of TCH (accumulated net deficit) was relieved via a
capital contribution from Tyco. The consolidated financial statements of
CIT were not impacted by TCH subsequent to June 30, 2002.
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