UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 2004
Commission file no: 1-6458
JOHN DEERE CAPITAL CORPORATION
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Delaware |
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36-2386361 |
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(State of incorporation) |
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(IRS employer identification no.) |
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1 East First Street, Suite 600 |
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(Address of principal executive offices) |
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Telephone Number: (775) 786-5527 |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2).
Yes o No ý
At July 31, 2004, 2,500 shares of common stock, without par value, of the registrant were outstanding, all of which were owned by John Deere Credit Company, a wholly-owned subsidiary of Deere & Company.
The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with certain reduced disclosures as permitted by those instructions.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
John Deere Capital Corporation and
Subsidiaries
Statements of Consolidated Income and Retained Earnings
(Unaudited)
(in millions)
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Three Months Ended |
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Nine Months Ended |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenues |
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Finance income earned on retail notes |
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$ |
91.1 |
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$ |
105.8 |
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$ |
283.9 |
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$ |
306.0 |
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Lease revenues |
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63.5 |
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79.2 |
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199.0 |
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256.1 |
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Revolving charge account income |
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45.5 |
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40.6 |
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120.7 |
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106.8 |
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Finance income earned on wholesale receivables |
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66.1 |
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64.3 |
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180.4 |
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180.4 |
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Operating loan income |
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5.4 |
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7.9 |
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17.8 |
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23.6 |
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Securitization and servicing fee income |
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12.6 |
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11.5 |
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37.0 |
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36.9 |
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Net gain on receivables sold |
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7.5 |
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23.8 |
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39.2 |
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38.1 |
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Interest income from short–term investments |
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.5 |
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4.8 |
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7.4 |
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11.1 |
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Other income |
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8.6 |
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5.1 |
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29.3 |
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20.1 |
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Total revenues |
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300.8 |
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343.0 |
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914.7 |
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979.1 |
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Expenses |
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Interest expense |
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79.2 |
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93.4 |
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241.7 |
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274.7 |
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Operating expenses: |
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Administrative and operating expenses |
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65.5 |
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50.3 |
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181.3 |
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146.0 |
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Provision for credit losses |
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7.5 |
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22.7 |
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32.0 |
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55.5 |
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Fees paid to John Deere |
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9.3 |
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6.6 |
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25.1 |
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21.0 |
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Depreciation of equipment on operating leases |
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41.0 |
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47.3 |
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128.4 |
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160.1 |
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Total operating expenses |
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123.3 |
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126.9 |
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366.8 |
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382.6 |
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Total expenses |
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202.5 |
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220.3 |
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608.5 |
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657.3 |
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Income of consolidated group before income taxes |
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98.3 |
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122.7 |
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306.2 |
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321.8 |
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Provision for income taxes |
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33.7 |
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43.0 |
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105.2 |
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112.4 |
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Income of consolidated group |
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64.6 |
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79.7 |
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201.0 |
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209.4 |
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Equity in income of unconsolidated affiliates |
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.1 |
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.1 |
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.4 |
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.2 |
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Net income |
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64.7 |
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79.8 |
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201.4 |
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209.6 |
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Cash dividends paid |
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(25.0 |
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(40.0 |
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(105.0 |
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(90.0 |
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Retained earnings at beginning of period |
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1,176.1 |
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1,123.7 |
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1,119.4 |
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1,043.9 |
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Retained earnings at end of period |
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$ |
1,215.8 |
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$ |
1,163.5 |
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$ |
1,215.8 |
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$ |
1,163.5 |
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See Notes to Interim Financial Statements.
2
John Deere Capital Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(in millions)
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July 31, |
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October 31, |
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July 31, |
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Assets |
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Cash and cash equivalents |
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$ |
220.6 |
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$ |
342.5 |
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$ |
344.5 |
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Receivables: |
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Retail notes |
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6,219.2 |
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6,109.7 |
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5,497.8 |
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Revolving charge accounts |
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1,415.9 |
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1,117.4 |
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1,116.5 |
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Operating loans |
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391.0 |
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541.4 |
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619.3 |
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Wholesale receivables |
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3,682.2 |
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2,904.6 |
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3,523.9 |
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Financing leases |
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402.9 |
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427.3 |
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430.9 |
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Total receivables |
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12,111.2 |
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11,100.4 |
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11,188.4 |
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Allowance for credit losses |
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(117.9 |
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(123.8 |
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(126.5 |
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Total receivables – net |
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11,993.3 |
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10,976.6 |
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11,061.9 |
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Notes receivable – unconsolidated affiliates |
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274.3 |
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300.3 |
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Other receivables |
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128.3 |
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142.9 |
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141.8 |
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Equipment on operating leases – net |
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740.4 |
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879.2 |
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908.8 |
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Investment in unconsolidated affiliates |
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3.5 |
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3.0 |
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2.9 |
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Other assets |
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303.9 |
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337.1 |
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377.1 |
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Total Assets |
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$ |
13,390.0 |
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$ |
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