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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
[X] ANNUAL REPORT PURSUANT TO SECTION 30(a) OF THE INVESTMENT COMPANY ACT OF
1940 AND SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________________ to _______________________.
Commission file number 2-23772.
American Express Certificate Company (formerly IDS Certificate Company)
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(Exact name of registrant as specified in its charter)
Delaware 41-6009975
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
52 AXP Financial Center, Minneapolis, Minnesota 55474
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (612) 671-3131
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Securities registered pursuant to Section 12(b) of the Act:
Title of each class: None Name of each exchange on which registered: None
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Securities registered pursuant to Section 12(g) of the Act:
Title of class: None
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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 __X__ No _____
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]
Aggregate market value of the voting stock held by non-affiliates of the
registrant. None
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Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date.
150,000 Common shares
CERTAIN DOCUMENTS INCORPORATED BY REFERENCE.
None
The registrant meets the conditions set forth in General Instructions I(1)(a)
and (b) of Form 10-K and is therefore filing this Form with the reduced
disclosure format.
The Exhibit Index is located on sequential pages 16-19.
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Item 1. Business
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American Express Certificate Company (AECC, or AXP Certificate
Company), formerly IDS Certificate Company (IDSC), is incorporated under the
laws of Delaware. (IDSC filed a Certificate of Amendment of its Certificate of
Incorporation with the Delaware Secretary of State to change the Company's name
to American Express Certificate Company effective April 26, 2000, and filed
registration statement amendments with the Securities and Exchange Commission
under which "IDS" in the names of certificates would change to "American
Express" on April 26, 2000.) Its principal executive offices are located at 52
AXP Financial Center, Minneapolis, Minnesota 55474, and its telephone number is
(612) 671-3131. American Express Financial Corporation, a Delaware corporation,
200 AXP Financial Center, Minneapolis, Minnesota 55474, owns 100% of the
outstanding voting securities of AECC. American Express Financial Corporation is
a wholly owned subsidiary of American Express Company (American Express), a New
York Corporation, with headquarters at American Express Tower, World Financial
Center, New York, New York.
AECC is a face-amount certificate investment company, registered under
the Investment Company Act of 1940 (1940 Act). AECC is in the business of
issuing face-amount certificates. Face-amount certificates issued by AECC
entitle the certificate owner to receive, at maturity, a stated amount of money
and interest or credits declared from time to time by AECC, in its discretion.
AECC is continuously engaged in new product development. AECC currently
offers nine certificates to the public: "American Express Cash Reserve
Certificate," "American Express Flexible Savings Certificate" (formerly "IDS
Variable Term Certificate"), "American Express Installment Certificate,"
"American Express Preferred Investors Certificate," "American Express Stock
Market Certificate," "American Express Market Strategy Certificate," "American
Express Equity Indexed Savings Certificate" (for sale through broker-dealers not
affiliated with AECC), "American Express Investors Certificate" (including a
form of American Express Investors Certificate offered to select investors who,
among other things, invest at least $50 million in the certificate), and
"American Express Special Deposits." The American Express Special Deposits is
only marketed through offices of American Express Bank Ltd. (AEB) in England and
Hong Kong and is not registered for sale in the United States. All certificates
are currently sold without a sales charge. The American Express Installment
Certificate, the American Express Flexible Savings Certificate, the American
Express Stock Market Certificate, the American Express Preferred Investors
Certificate, the American Express Market Strategy Certificate, the American
Expres Equity Indexed Savings Certificate, the American Express Investors
Certificate and the American Express Special Deposits currently bear surrender
charges for premature surrenders. All of the above described certificates,
except the American Express Special Deposits, are distributed pursuant to a
Distribution Agreement with American Express Financial Advisors Inc., an
affiliate of AECC. With respect to the American Express Investors Certificate
and a form of the American Express Stock Market Certificate, American Express
Financial Advisors Inc., in turn, has Selling Agent Agreements with American
Express Bank International (AEBI), a subsidiary of American Express, and Coutts
& Co. (USA) International (Coutts), a subsidiary of National Westminster Bank
PLC, for selling the certificates. With respect to the American Express Special
Deposits, AECC has a Marketing Agreement with AEB, an indirect subsidiary of
American Express, for marketing the certificate. AECC has a Distribution
Agreement with American Express Service Corporation (AESC) under which AESC can
distribute the American Express Stock Market Certificate and potentially other
certificates. As of December 31, 2000, no certificates have been distributed
through AESC. With respect to American Express Stock Market Certificate,
American Express Financial Advisors Inc. has a Selling Agent Agreement effective
March 10, 1999 with Securities America Inc., an affiliate of AECC. There is no
assurance that AXP certificates will be distributed by AESC or sold by
Securities America Inc.
AEBI and Coutts are Edge Act corporations organized under the
provisions of Section 25(a) of the Federal Reserve Act. American Express
Financial Advisors Inc. has entered into a consulting agreement with AEBI under
which AEBI provides consulting services related to any selling agent agreements
between American Express Financial Advisors Inc. and other Edge Act
corporations.
AECC also offers one certificate in connection with certain employee
benefit plans available to eligible American Express Financial Corporation
employees, financial advisors, retirees, and eligible employees of the American
Express funds, and to IRAs of persons retired as employees or financial advisors
with American Express Financial Corporation. This certificate is called the
Series D-1 Investment Certificate.
Except for the American Express Investors Certificate and the American
Express Special Deposits, all of the certificates are available as qualified
investments for Individual Retirement Accounts (IRAs), or 401(k) plans and other
qualified retirement plans.
The specified maturities of the certificates range from ten to twenty
years. Within that maturity period, most certificates have interest rate terms
ranging from three to thirty-six months. Interest rates change and certificate
owners can surrender their certificates without penalty at term end.
The American Express Cash Reserve Certificate is a single pay
certificate that permits additional investments and on which AECC guarantees
interest in advance for a three-month term.
The American Express Flexible Savings Certificate is a single payment
certificate that permits a limited amount of additional payments and on which
AECC guarantees interest in advance for a term of 6, 12, 18, 24, 30, or 36
months, and potentially other terms, at the buyer's option.
The American Express Installment Certificate is an installment payment
certificate that declares interest in advance for a three-month period and
offers bonuses in the second through ninth years for regular investments.
The American Express Stock Market Certificate is a single payment
certificate that offers the certificate owner the opportunity to have all or
part of his/her interest tied to 52- week stock market performance, as measured
by a broad stock market index, with return of principal guaranteed by AECC. The
owner can also choose to earn a fixed rate of interest. This certificate is sold
to clients of American Express Financial Advisors Inc., and is available through
Securities America Inc. under a Selling Agent Agreement effective March 10, 1999
with American Express Financial Advisors Inc., and may be available from time to
time through American Express Service Corporation under its Distribution
Agreement with AECC. This certificate is also marketed as the American Express
Stock Market Certificate by AEBI and Coutts, under Selling Agent Agreements with
American Express Financial Advisors Inc., to AEBI's clients and certain of
Coutts' clients, respectively, who are neither citizens nor residents of the
United States.
The American Express Market Strategy Certificate is a single payment
certificate that pays interest at a fixed rate or that offers the owner the
opportunity to have all or part of his/her interest tied to 52-week stock market
performance as measured by a broad stock market index, for a series of 52- week
terms starting every month or at intervals the owner selects.
The American Express Investors Certificate is a single payment
certificate that generally permits additional payments within 15 days of term
renewal. Interest rates are guaranteed in advance by IDSC for a term of 1, 2, 3,
6, 12, 24, or 36 months, at the buyer's option. This certificate is currently
sold by AEBI and Coutts, under Selling Agent Agreements with American Express
Financial Advisors Inc., only to AEBI's clients and certain of Coutts' clients,
respectively, who are neither citizens nor residents of the United States.
The American Express Preferred Investors Certificate is a single
payment certificate that combines a fixed rate of return with AECC's guarantee
of principal for investments of $250,000 to $5,000,000. Interest rates are
guaranteed in advance by AECC for a term of 1, 2, 3, 6, 12, 24 or 36 months, at
the buyer's option.
The American Express Special Deposits is a single payment certificate
that generally permits additional payments within 15 days of term renewal.
Interest rates are guaranteed in advance by IDSC for a term of 1, 2, 3, 6, 12,
24, or 36 months (by the date of term renewal in the case of 1- month terms), at
the buyer's option. This certificate is currently marketed by AEB through its
London and Hong Kong offices, under a Marketing Agreement with IDSC, only to
AEB's clients who are neither citizens nor residents of the United States. This
certificate is not registered for sale in the United States.
To AECC's knowledge, AECC is by far the largest issuer of face-amount
certificates in the United States. However, such certificates compete with many
other investments offered by banks, savings and loan associations, mutual funds,
broker-dealers and others, which may be viewed by potential clients as offering
a comparable or superior combination of safety and return on investment. In
particular, some of AECC's products are designed to be competitive with the
types of investment offered by banks and thrifts. Since AECC's face-amount
certificates are securities, their offer and sale are subject to regulation
under federal and state securities laws. AECC's certificates are backed by its
qualified assets on deposit and are not insured by any governmental agency or
other entity.
For all the certificates, except for the American Express Investors
Certificate, American Express Preferred Investors Certificate, and the American
Express Special Deposits, AECC's current policy is to re-evaluate the
certificate rates weekly to respond to marketplace changes. For the American
Express Investors Certificate, American Express Preferred Investors Certificate,
and the American Express Special Deposits, AECC's current policy is to
re-evaluate the rates on a daily basis. For each product, AECC refers to an
independent index or source to set the rates for new sales. Except for American
Express Special Deposits, AECC must set the rates for an initial purchase of the
certificate within a specified range of the rate from such index or source. For
renewals, AECC uses such rates as an indication of the competitors' rates, but
is not required to set rates within a specified range.
For the American Express Flexible Savings Certificate, American Express
Cash Reserve Certificate and the American Express Series D-1 Investment
Certificate, the published rates of the BANK RATE MONITOR Top 25 Market
Average(R) for various length bank certificates of deposit are used as the guide
in setting rates. For the American Express Installment Certificate, the average
interest rate for money market deposit accounts, as published by the BANK RATE
MONITOR Top 25 Market Average(R) (the BRM Average), is used as a guide in
setting rates. For the American Express Investors Certificate, American Express
Preferred Investors Certificate, and American Express Special Deposits, the
published average rates for comparable length dollar deposits available on an
interbank basis, referred to as the London Interbank Offered Rates (LIBOR), are
used as a guide in setting rates.
To compete with popular short-term investment vehicles such as
certificates of deposit, money market certificates and money market mutual funds
that offer comparable yields, liquidity and safety of principal, AECC offers the
American Express Cash Reserve Certificate and the American Express Flexible
Savings Certificate. The yields and features on these products are designed to
be competitive with such short-term products. The American Express Investors
Certificate, American Express Preferred Investors Certificate and American
Express Special Deposits also compete with short-term products, but use LIBOR
rates. The American Express Installment Certificate is intended to help clients
save systematically and may compete with passbook savings and NOW accounts. The
American Express Stock Market Certificate, American Express Market Strategy
Certificate and American Express Equity Indexed Savings Certificate are designed
to offer interest tied to a major stock market index and principal guaranteed by
AECC. Certain banks offer certificates of deposit that have features similar to
the Stock Market Certificate, Market Strategy Certificate and Equity Indexed
Savings Certificate.
AECC's gross income is derived principally from interest and dividends
generated by its investments. AECC's net income is determined by deducting from
such gross income its provision for certificate reserves, and other expenses,
including taxes, the fee paid to American Express Financial Corporation for
advisory and other services, the distribution fees paid to American Express
Financial Advisors Inc., and marketing fees paid to AEB.
AECC may make forward-looking statements in documents such as this 10-K
Annual Report. In addition, from to time to time, AECC through its management
may make oral forward-looking statements. Forward-looking statements are subject
to uncertainties that could cause actual results to differ materially from such
statements. Readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date on which they are made. AECC
undertakes no obligation to update publicly or revise any forward-looking
statements.
The following table shows AECC's certificate payments received and certificate
surrenders for the three years ended December 31, 2000:
2000 1999 1998
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($ in Millions)
Single Payment Certificates
Non-Qualified
Payments through:
American Express Financial Advisors Inc. $773.5 $950.2 $685.3
AEBI, AEB, and Coutts 636.1 387.7 303.0
Surrenders through:
American Express Financial Advisors Inc. 710.2 854.3 922.9
AEBI, AEB, and Coutts 482.9 358.4 370.6
Qualified
Payments through:
American Express Financial Advisors Inc. 209.1 194.7 122.4
Surrenders through:
American Express Financial Advisors Inc. 151.8 160.7 164.7
Installment Payment Certificates
Through American Express Financial Advisors Inc.
Non-Qualified
Payments 48.3 62.9 80.4
Surrenders 101.8 114.5 118.5
Qualified
Payments .4 .6 1.0
Surrenders 1.4 1.8 2.5
In 2000, approximately 39% of single payment certificate payments were
through AEBI, AEB, and Coutts, and approximately 13% of single payment
certificate payments and 1% of installment certificate payments were of
tax-qualified certificates for use in IRAs, 401(k) plans and other qualified
retirement plans.
The certificates offered by American Express Financial Advisors Inc.
are sold pursuant to a distribution agreement which is terminable on 60 days
notice and is subject to annual approval by AECC's Board of Directors, including
a majority of the directors who are not "interested persons" of American Express
Financial Advisors Inc. or AECC as that term is defined in the 1940 Act. The
agreement provides for the payment of distribution fees to American Express
Financial Advisors Inc. for services provided thereunder. American Express
Financial Advisors Inc. is a wholly owned subsidiary of American Express
Financial Corporation. For the sale of the American Express Investors
Certificate and the American Express Stock Market Certificate by AEBI, American
Express Financial Advisors Inc., in turn, has Selling Agent Agreements with AEBI
and Coutts. For the sale of American Express Stock Market Certificate and
American Express Equity Indexed Savings Certificates, American Express Financial
Advisors Inc. also has a Selling Agent Agreement with Securities America Inc.
effective March 10, 1999. For the distribution of the American Express Stock
Market Certificate, AECC has a distribution agreement with American Express
Service Corporation. For marketing American Express Special Deposits, AECC has a
Marketing Agreement with AEB. These agreements are terminable upon 60 days
notice and subject to annual review by directors who are not "interested
persons" of American Express Financial Advisors Inc. or AECC except that such
annual review is not required for selling agent agreements.
AECC receives advice, statistical data and recommendations with respect
to the acquisition and disposition of securities for its portfolio from American
Express Financial Corporation, under an investment management agreement which is
subject to annual review by AECC's Board of Directors, including a majority of
the directors who are not "interested persons" of American Express Financial
Corporation or AECC.
AECC is required to maintain cash and "qualified investments" meeting
the standards of Section 28(b) of the 1940 Act, as modified by an order of the
Securities and Exchange Commission (the SEC). The amortized cost of said
investments must be at least equal to AECC's net liabilities on all outstanding
face-amount certificates plus $250,000. So long as AECC wishes to rely on the
SEC order, as a condition to the order, AECC has agreed to maintain an amount of
unappropriated retained earnings and capital equal to at least 5% of net
certificate reserves. For these purposes, net certificate reserves means
certificate reserves less outstanding certificate loans. In determining
compliance with this condition, qualified investments are valued in accordance
with the provisions of Minnesota Statutes where such provisions are applicable.
AECC's qualified assets consist of cash and cash equivalents, first mortgage
loans on real estate, U.S. government and government agency securities,
municipal bonds, corporate bonds, preferred stocks and other securities meeting
specified standards. AECC has also entered into a written informal understanding
with the State of Minnesota, Department of Commerce, that AECC will maintain
capital equal to 5% of the assets of AECC (less any loans on outstanding
certificates). When computing its capital for these purposes, AECC values its
assets on the basis of statutory accounting for insurance companies rather than
generally accepted accounting principles. AECC is subject to annual examination
and supervision by the State of Minnesota, Department of Commerce (Banking
Division).
Distribution fees on sales of certain certificates are deferred and
amortized over the estimated lives of the related certificates, which is
approximately 10 years. Upon surrender, unamortized deferred distribution fees
and any related surrender charges are recognized in income. Thus, these
certificates must remain in effect for a period of time to permit AECC to
recover such costs.
Item 2. Properties
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None.
Item 3. Legal Proceedings
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Registrant has no material pending legal proceedings other than
ordinary routine litigation incidental to its business.
Item 4. Submission of Matters to a Vote of Security Holders
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Item omitted pursuant to General Instructions I(2)(c) of Form 10-K.
PART II
Item 5. Market for the Registrant's Common Stock and Related Stockholder
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Matters
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There is no market for the Registrant's common stock since it is a
wholly owned subsidiary of American Express Financial Corporation and,
indirectly, of American Express. Frequency and amount of cash dividends declared
during the past two years are as follows:
Dividend Payable Date
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For the year ended December 31, 2000:
January 28, 2000 $ 5,000,000
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Dividend Payable Date
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For the year ended December 31, 1999:
January 15, 1999 $13,000,000
June 4, 1999 12,000,000
November 29, 1999 15,000,000
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$40,000,000
===========
Restriction on the Registrant's present or future ability to pay
dividends:
Certain series of installment certificates outstanding provide that
cash dividends may be paid by AECC only in calendar years for which additional
credits of at least 1/2 of 1% on such series of certificates have been
authorized by AECC. This restriction has been removed for 2001 and 2002 by
AECC's declaration of additional credits in excess of this requirement.
Appropriated retained earnings resulting from the predeclaration of
additional credits to AECC's certificate owners are not available for the
payment of dividends by AECC. In addition, AECC will discontinue issuance of
certificates subject to the predeclaration of additional credits and will make
no further predeclaration as to outstanding certificates if at any time the
capital and unappropriated retained earnings of AECC should be less than 5% of
net certificate reserves (certificate reserves less certificate loans). At
December 31, 2000, the capital and unappropriated retained earnings amounted to
5.68% of net certificate reserves.
Item 6. Selected Financial Data
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SUMMARY OF SELECTED FINANCIAL INFORMATION
The following selected financial information has been derived from the audited
financial statements and should be read in conjunction with those statements and
the related notes to financial statements. Also see "Management's Discussion and
Analysis of Financial Condition and Results of Operations" for additional
comments.
Year Ended Dec. 31, ($ thousands)
Statement of Operations Data
2000 1999 1998 1997 1996
Investment income $266,106 $254,344 $273,135 $258,232 $251,481
Investment expenses 87,523 77,235 76,811 70,137 62,851
Net investment income before provision
for certificate reserves and income
tax (expense) benefit 178,583 177,109 196,324 188,095 188,630
Net provision for certificate reserves 155,461 138,555 167,108 165,136 171,968
Net investment income before income
tax (expense) benefit 23,122 38,554 29,216 22,959 16,662
Income tax (expense) benefit (14) (4,615) 265 3,682 6,537
Net investment income 23,108 33,939 29,481 26,641 23,199
Net realized (loss) gain on investments:
Securities of unaffiliated issuers (10,110) 1,250 5,143 980 (444)
Other-- unaffiliated -- -- -- -- 101
Net realized (loss) gain on investments
before income taxes (10,110) 1,250 5,143 980 (343)
Income tax (expense) benefit 3,539 (437) (1,800) (343) 120
Net realized (loss) gain on investments (6,571) 813 3,343 637 (223)
Net income-- wholly owned subsidiary -- 4 1,646 328 1,251
Net income $ 16,537 $ 34,756 $ 34,470 $ 27,606 $ 24,227
Cash Dividends Declared
$5,000 $40,000 $29,500 $-- $65,000
Balance Sheet Data
Total assets $4,032,745 $3,761,068 $3,834,244 $4,053,648 $3,563,234
Certificate loans 25,547 28,895 32,343 37,098 43,509
Certificate reserves 3,831,059 3,536,659 3,404,883 3,724,978 3,283,191
Stockholder's equity 166,514 141,702 222,033 239,510 194,550
American Express Certificate Company (AECC), formerly IDS Certificate Company,
is 100% owned by American Express Financial Corporation (Parent).
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
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RESULTS OF OPERATIONS
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Results of operations
American Express Certificate Company's (AECC), formerly IDS Certificate Company,
earnings are derived primarily from the after-tax yield on invested assets less
investment expenses and interest credited on certificate reserve liabilities.
Changes in earnings' trends occur largely due to changes in the rates of return
on investments and the rates of interest credited to certificate owner accounts,
and also due to changes in the mix of fully taxable and tax-advantaged
investments in the AECC portfolio.
During 2000, total assets and certificate reserves increased $272 million and
$294 million, respectively. The increase in total assets resulted primarily from
certificate payments exceeding certificate maturities and surrenders. The
increase in certificate reserves resulted primarily from interest accruals of
$148 million and certificate sales exceeding certificate maturities and
surrenders by $146 million.
During 1999, total assets decreased $73 million whereas certificate reserves
increased $132 million. The decreases in total assets and accounts payable and
accrued liabilities resulted primarily from net repayments under reverse
repurchase agreements of $116 million. The decrease in total assets reflects
also, a decrease in net unrealized appreciation on investment securities
classified as available for sale of $115 million. The increase in certificate
reserves resulted primarily from interest accruals of $203 million offset by
certificate maturities and surrenders exceeding certificate sales by $71
million.
2000 Compared to 1999
Gross investment income increased 4.6% due primarily to a higher average balance
of invested assets.
Investment expenses increased 13.3% in 2000. The increase resulted primarily
from the net of higher amortization of premiums paid for index options of $12.3
million and lower interest expense on interest rate swap and reverse repurchase
agreements of $1.1 million and $.6 million, respectively.
Net provision for certificate reserves increased 12.2% due primarily to higher
accrual rates and a higher average balance of certificate reserves during 2000.
The decrease in income tax benefit resulted primarily from less tax-advantaged
investment income.
1999 Compared to 1998
Gross investment income decreased 6.9% due primarily to a lower average balance
of invested assets.
Investment expenses increased slightly in 1999. The slight increase resulted
primarily from the net of higher amortization of premiums paid for index options
of $10.1 million and lower interest expense on reverse repurchase and interest
rate swap agreements of $6.5 million, lower distribution fees of $2.3 million
and lower investment advisory and services and transfer agent fees of $.8
million.
Net provision for certificate reserves decreased 17.1% due primarily to lower
accrual rates during 1999.
The decrease in income tax benefit resulted primarily from less tax-advantaged
investment income.
Liquidity and cash flow
AECC's principal sources of cash are payments from sales of face-amount
certificates and cash flows from investments. In turn, AECC's principal uses of
cash are payments to certificate owners for matured and surrendered
certificates, purchase of investments and payments of dividends to its Parent.
Certificate sales remained strong in 2000 reflecting clients' ongoing desire for
safety of principal. Sales of certificates totaled $1.5 billion in both 2000 and
1999 compared to $1.1 billion in 1998. The higher certificate sales in 1999 over
1998 resulted primarily from special promotions of the seven- and 13-month term
American Express Flexible Savings Certificate (formerly IDS Flexible Savings
Certificate) which produced sales of $295 million. Certificate sales in 1999
benefited also, from higher sales of the American Express Market Strategy
Certificate (formerly IDS Market Strategy Certificate) and American Express
Investors Certificate of $95 million and $118 million, respectively.
Certificate maturities and surrenders totaled $1.5 billion during 2000 compared
to $1.7 billion during both 1999 and 1998. The lower certificate maturities and
surrenders in 2000 compared to 1999 and 1998, resulted primarily from lower
surrenders of American Express Flexible Savings Certificates.
AECC, as an issuer of face-amount certificates, is affected whenever there is a
significant change in interest rates. In view of the uncertainty in the
investment markets and due to the short-term repricing nature of certificate
reserve liabilities, AECC continues to invest in securities that provide for
more immediate, periodic interest/principal payments, resulting in improved
liquidity. To accomplish this, AECC continues to invest much of its cash flow in
intermediate-term bonds and mortgage-backed securities.
AECC's investment program is designed to maintain an investment portfolio that
will produce the highest possible after-tax yield within acceptable risk
standards with additional emphasis on liquidity. The program considers
investment securities as investments acquired to meet anticipated certificate
owner obligations.
Under Statement of Financial Accounting Standards (SFAS) No. 115, "Accounting
for Certain Investments in Debt and Equity Securities," debt securities that
AECC has both the positive intent and ability to hold to maturity are carried at
amortized cost. Debt securities AECC does not have the positive intent to hold
to maturity, as well as all marketable equity securities, are classified as
available for sale and carried at fair value. The available-for-sale
classification does not mean that AECC expects to sell these securities, but
that under SFAS No. 115 positive intent criteria, these securities are available
to meet possible liquidity needs should there be significant changes in market
interest rates or certificate owner demand. See notes 1 and 3 to the financial
statements for additional information relating to SFAS No. 115.
At Dec. 31, 2000, securities classified as held to maturity and carried at
amortized cost were $.3 billion. Securities classified as available for sale and
carried at fair value were $3.1 billion. These securities, which comprise 87% of
AECC's total invested assets, are well diversified. Of these securities,
approximately 97% have fixed maturities of which 90% are of investment grade.
Other than U.S. Government Agency mortgage-backed securities, no one issuer
represents more than 1% of total securities. See note 3 to financial statements
for additional information on ratings and diversification.
During the year ended Dec. 31, 2000, write-downs of $11.4 million were recorded
on AECC's below-investment-grade securities and the reserve for possible losses
on investments in first mortgage loans on real estate was increased by $.2
million. These losses were partially offset by net realized gains of $1.5
million from investment security sales and redemptions.
At Dec. 31, 2000, approximately 8.5% of AECC's invested assets were
below-investment-grade bonds. During the year 2000, the industry-wide default
rate on below-investment-grade bonds increased significantly and this trend is
expected to continue over the next year and possibly beyond.* Additional
writedowns of AECC's below-investment-grade securities in 2001 are likely but
the amount of any such writedowns cannot be estimated at this time.* AECC's
management believes that there will be no adverse impact on the certificate
owners of any such losses.*
During the year ended Dec. 31, 2000, securities classified as available for sale
were sold with an amortized cost and fair value of $312 million and $313
million, respectively. The securities were sold in general management of the
investment portfolio.
During the year ended Dec. 31, 2000, a security classified as held to maturity
was tendered with an amortized cost and fair value of $5.0 million and $4.7
million, respectively. In addition, a held-to-maturity security with an
amortized cost and fair value of $4.0 million and $4.1 million, respectively,
was sold due to credit concerns. There were no sales or tenders of
held-to-maturity securities during the year ended Dec. 31, 1999.
There were no transfers of available-for-sale or held-to-maturity securities
during the years ended Dec. 31, 2000 and 1999.
In June 1998, the Financial Accounting Standards Board (FASB) issued, and
subsequently amended, Statement of Financial Accounting Standards (SFAS) No.
133, "Accounting for Derivative Instruments and Hedging Activities," which AECC
adopted on Jan. 1, 2001. This Statement allows a one-time opportunity to
reclassify held-to-maturity investments to available-for-sale without tainting
the remaining securities in the held-to-maturity portfolio. AECC has elected to
take this opportunity to reclass its held-to-maturity investments to
available-for-sale. As of Jan. 1, 2001, the cumulative impact of applying the
Statement's accounting requirements will not have a significant impact on AECC's
financial position or results of operations.
Market risk and derivative financial instruments
The sensitivity analysis of two different tests of market risk discussed below
estimate the effects of hypothetical sudden and sustained changes in the
applicable market conditions on the ensuing year's earnings based on year-end
positions. The market changes, assumed to occur as of year-end, are a 100 basis
point increase in market interest rates and a 10% decline in a major stock
market index. Computation of the prospective effects of hypothetical interest
rate and major stock market index changes are based on numerous assumptions,
including relative levels of market interest rates and the major stock market
index level, as well as the levels of assets and liabilities. The hypothetical
changes and assumptions will be different than what actually occurs in the
future. Furthermore, the computations do not anticipate actions that may be
taken by management if the hypothetical market changes actually occurred over
time. As a result, actual earnings effects in the future will differ from those
quantified below.
* Statements in this discussion and analysis of AECC's financial condition and
results of operations marked with an asterisk are forward-looking statements
which are subject to risks and uncertainties. Important factors that could
cause results to differ materially from these forward-looking statements
include, among other things, changes in the industry-wide and AECC's default
rate on below-investment-grade bonds over the next several months and beyond,
changes in economic conditions, such as a recession or a substantial increase
in prevailing interest rates, or other factors that could cause a slowdown in
the economy, and changes in government regulation that affects the ability of
issuers to repay their debt.
AECC primarily invests in intermediate-term and long-term fixed income
securities to provide its certificate owners with a competitive rate of return
on their certificates while managing risk. These investment securities provide
AECC with a historically dependable and targeted margin between the interest
rate earned on investments and the interest rate credited to certificate owners'
accounts. AECC does not invest in securities to generate trading profits for its
own account.
AECC's Investment Committee, which comprises senior business managers, meets
regularly to review models projecting different interest rate scenarios and
their impact on AECC's profitability. The committee's objective is to structure
AECC's portfolio of investment securities based upon the type and behavior of
the certificates in the certificate reserve liabilities, to achieve targeted
levels of profitability and meet certificate contractual obligations.
Rates credited to certificate owners' accounts are generally reset at shorter
intervals than the maturity of underlying investments. Therefore, AECC's margins
may be negatively impacted by increases in the general level of interest rates.
Part of the committee's strategies include the purchase of derivatives, such as
interest rate caps, corridors, floors and swaps, for hedging purposes. On three
series of certificates, interest is credited to the certificate owners' accounts
based upon the relative change in a major stock market index between the
beginning and end of the certificates' terms. As a means of hedging its
obligations under the provisions of these certificates, the committee purchases
and writes call options on the major stock market index. See note 9 to the
financial statements for additional information regarding derivative financial
instruments.
The negative impact on AECC's pretax earnings of the 100 basis point increase in
interest rates, which assumes repricings and customer behavior based on the
application of proprietary models to the book of business at Dec. 31, 2000 and
1999, would be approximately $3.4 million and $8.2 million for 2000 and 1999,
respectively. The 10% decrease in a major stock market index level would have a
minimal impact on AECC's pretax earnings as of Dec. 31, 2000 and 1999, because
the income effect is a decrease in option income and a corresponding decrease in
interest credited to the American Express Stock Market Certificate, American
Express Market Strategy Certificate and American Express Equity Indexed Savings
Certificate owners' accounts.
Ratios
The ratio of stockholder's equity, excluding accumulated other comprehensive
loss net of tax, to total assets less certificate loans and net unrealized
holding gains/losses on investment securities (capital to asset ratio) at Dec.
31, 2000 and 1999 was 5.4% and 5.5%, respectively. Under an informal agreement
established with the Commissioner of Commerce for the State of Minnesota, AECC
has agreed to maintain at all times a minimum capital to asset ratio of 5.0%.
Item 7A. Ouantitative and Qualitative Disclosures About Market Risk
- -------------------------------------------------------------------
See Item 7.
Item 8. Financial Statements and Supplementary Data
- ----------------------------------------------------
1. Financial Statements and Schedules Required under Regulation S-X
----------------------------------------------------------------
Index to Financial Statements and Schedules
- ------------------------------------------- Page
----
Financial Statements:
Responsibility for Preparation of Financial Statements 22
Report of Independent Auditors 23
Balance Sheets, Dec. 31, 2000 and 1999 24 - 25
Statements of Operations, year ended Dec. 31, 2000,
1999 and 1998 26 - 27
Statements of Comprehensive Income, year ended
Dec. 31, 2000, 1999 and 1998 28
Statements of Stockholder's Equity, year ended
Dec. 31, 2000, 1999 and 1998 29
Statements of Cash Flows, year ended Dec. 31, 2000,
1999 and 1998 30 - 31
Notes to Financial Statements 32 - 49
Schedules:
I - Investments in Securities of Unaffiliated Issuers, Dec. 31, 2000
II - Investments in and Advances to Affiliates and Income Thereon,
Dec. 31, 2000, 1999 and 1998
III - Mortgage Loans on Real Estate and Interest earned on Mortgages,
year ended Dec. 31, 2000
V - Qualified Assets on Deposit, Dec. 31, 2000
VI - Certificate Reserves, year ended Dec. 31, 2000
VII - Valuation and Qualifying Accounts, year ended Dec. 31, 2000, 1999
and 1998
Schedules I, III and VI for the year ended Dec. 31, 1999, and Schedule
VI for the year ended Dec. 31, 1998, are included in Registrant's Annual Reports
on Form 10-K for the fiscal years ended Dec. 31, 1999 and Dec. 31, 1998,
respectively, Commission file 2-23772, and are incorporated herein by reference.
All other Schedules required by Article 6 of the Regulation S-X are not
required under the related instructions or are inapplicable and therefore have
been omitted.
2. Supplementary Data
------------------
None
Item 9. Changes in and Disagreements With Accountants on Accounting and
- ------------------------------------------------------------------------
Financial Disclosure
--------------------
None
PART III
Items omitted pursuant to General Instructions I(2)(c) of Form 10-K.
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
- ------------------------------------------------------------------------------
(a) List the following documents filed as a part of the report:
1. All financial statements. See Item 8.
2. Financial statement schedules. See Item 8.
3. Exhibits.
1. None or not applicable.
2. None or not applicable.
3(a). Certificate of Incorporation, dated December 31, 1977,
filed electronically as Exhibit 3(a) to Post-Effective
Amendment No. 10 to Registration Statement No. 2-89507, is
incorporated herein by reference.
3(b). Certificate of Amendment, dated April 2, 1984 filed
electronically as Exhibit 3(b) to Post-Effective Amendment
No. 10 to Registration Statement No. 2-89507, is
incorporated herein by reference.
3(c). Certificate of Amendment, dated September 12, 1995, filed
electronically as Exhibit 3(c) to Post-Effective Amendment
No. 44 to Registration Statement No. 2-55252, is
incorporated herein by reference.
3(d). Certificate of Amendment, dated April 30, 1999, filed
electronically as Exhibit 3(a) to Registrant's March 31,
1999 Quarterly Report on Form 10-Q is incorporated herein
by reference.
3(e). Certificate of Amendment, dated January 28, 2000, filed
electronically as exhibit 3(e) to Post-Effective Amendment
No. 47 to Registration Statement No. 2-55252, is
incorporated herein by reference.
3(f). Current By-Laws, filed electronically as Exhibit 3(e) to
Post-Effective Amendment No. 19 to Registration Statement
No. 33-26844, are incorporated herein by reference.
4-9. None or not applicable.
10(a). Investment Advisory and Services Agreement between
Registrant and IDS/American Express Inc. dated January 12,
1984, filed electronically as Exhibit 10(b) to Registrant's
Post-Effective Amendment No. 3 to Registration Statement
No. 2-89507, is incorporated herein by reference.
10(b). Distribution Agreement dated November 18, 1988, between
Registrant and IDS Financial Services Inc., filed
electronically as Exhibit 1(a) to the Registration
Statement No. 33-26844, for the American Express
International Investment Certificate (now called, the IDS
Investors Certificate) is incorporated herein by reference.
10(c). Depositary and Custodial Agreement dated September 30, 1985
between IDS Certificate Company and IDS Trust Company,
filed electronically as Exhibit 10(b) to Registrant's
Post-Effective Amendment No. 3 to Registration Statement
No. 2-89507, is incorporated herein by reference.
10(d). Foreign Deposit Agreement dated November 21, 1990, between
IDS Certificate Company and IDS Bank & Trust, filed
electronically as Exhibit 10(h) to Post-Effective Amendment
No. 5 to Registration Statement No. 33-26844, is
incorporated herein by reference.
10(e). Selling Agent Agreement dated June 1, 1990, between
American Express Bank International and IDS Financial
Services Inc. for the American Express Investors and
American Express Stock Market Certificates, filed
electronically as Exhibit 1(c) to the Post-Effective
Amendment No. 5 to Registration Statement No. 33-26844, is
incorporated herein by reference.
10(f). Second amendment to Selling Agent Agreement between
American Express Financial Advisors Inc. and American
Express Bank International dated as of May 2, 1995, filed
electronically as Exhibit (1) to Registrant's June 30,
1995, Quarterly Report on Form 10-Q, is incorporated
herein by reference.
10(g). Marketing Agreement dated October 10, 1991, between
Registrant and American Express Bank Ltd., filed
electronically as Exhibit 1(d) to Post-Effective Amendment
No. 31 to Registration Statement 2-55252, is incorporated
herein by reference.
10(h). Amendment to the Selling Agent Agreement dated December 12,
1994, between IDS Financial Services Inc. and American
Express Bank International, filed electronically as Exhibit
1(d) to Post-Effective Amendment No. 13 to Registration
Statement No. 2-95577, is incorporated herein by reference.
10(i). Selling Agent Agreement dated December 12, 1994, between
IDS Financial Services Inc. and Coutts & Co. (USA)
International, filed electronically as Exhibit 1(e) to
Post-Effective Amendment No. 13 to Registration Statement
No. 2-95577, is incorporated herein by reference.
10(j). Consulting Agreement dated December 12, 1994, between IDS
Financial Services Inc. and American Express Bank
International, filed electronically as Exhibit 16(f) to
Post-Effective Amendment No. 13 to Registration Statement
No. 2-95577 is incorporated herein by reference.
10(k). Letter amendment dated January 9, 1997 to the Marketing
Agreement dated October 10, 1991, between Registrant and
American Express Bank Ltd. filed electronically as Exhibit
10(j) to Post-Effective Amendment No. 40 to Registration
Statement No. 2-55252, is incorporated herein by reference.
10(l). Form of Letter amendment dated April 7, 1997 to the Selling
Agent Agreement dated June 1, 1990 between American Express
Financial Advisors Inc. and American Express Bank
International, filed electronically as Exhibit 10 (j) to
Post-Effective Amendment No. 14 to Registration Statement
33-26844, is incorporated herein by reference.
10(m). Letter Agreement dated July 28, 1999 amending the Selling
Agent Agreement dated June 1, 1990, or a schedule thereto,
as amended, between American Express Financial Advisors
Inc. (formerly IDS Financial Services Inc.) and American
Express Bank International, filed electronically to
Registrant's June 30, 1999 Quarterly Report on Form 10-Q,
is incorporated herein by reference.
10(n). Letter Agreement dated July 28, 1999, amending the
Marketing Agreement dated October 10, 1991, or a schedule
thereto, as amended, between IDS Certificate Company and
American Express Bank Ltd., filed electronically to
Registrant's June 30, 1999 Quarterly Report on Form 10-Q,
is incorporated herein by reference.
10(o) Selling Agent Agreement, dated March 10, 1999 between
American Express Financial Advisors Inc. and Securities
America, Inc., filed electronically as Exhibit 10 (l) to
Post-Effective Amendment No. 18 to Registration Statement
33-26844, is incorporated herein by reference.
10(p) Letter Agreement, dated April 10, 2000, amending the
Selling Agent Agreement, dated March 10, 1999, between
American Express Financial Advisors Inc. and Securities
America, Inc., filed electronically as Exhibit 10 (o) to
Post-Effective Amendment No. 20 to Registration Statement
33-26844, is incorporated herein by reference.
10(q) (1) Code of Ethics under rule 17j-1 for Registrant,
filed electronically as Exhibit 10(p)(1) to
Pre-Effective Amendment No. 1 to Registration
Statement No. 333-34982, is incorporated herein by
reference.
(2) Code of Ethics under rule 17j-1 for Registrant's
investment advisor and principal underwriters, filed
electronically as Exhibit 10(p)(2) to Pre-Effective
Amendment No. 1 to Registration Statement No.
333-34982, is incorporated herein by reference.
10(r) Letter of Representations dated August 22, 2000 between
American Express Certificate Company and the Depository
Trust Company, filed electronically as Exhibit 10(r) to
Post-Effective Amendment No. 2-552527 is incorporated
herein by reference.
11-23. None or not applicable.
24(a). Officers' Power of Attorney, dated October 12, 2000, filed
electronically as exhibit 24(a) to Registrant's September
30, 2000 Quarterly Report on Form 10-Q, is incorporated
herein by reference.
24(b). Directors' Power of Attorney, dated October 12, 2000, filed
electronically as exhibit 24(b) to Registrant's September
30, 2000 Quarterly Report on Form 10-Q, is incorporated
herein by reference.
25-99. None or not applicable.
(b) Reports on Form 8-K filed during the last quarter of the period
covered by this report. None.
SIGNATURES
----------
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
REGISTRANT American Express Certificate Company
BY /s/ Paula R. Meyer *
NAME AND TITLE Paula R. Meyer, President
DATE March 29, 2001
Pursuant to the requirements of the Securities and Exchange Act of
1934, this report has been signed below by the following persons on behalf of
the registrant and in the capacities and on the dates indicated.
BY /s/ Paula R. Meyer, * * *
NAME AND TITLE Paula R. Meyer, President and Director
(Principal Executive Officer)
DATE March 29, 2001
BY /s/ Jeffrey S. Horton *
NAME AND TITLE Jeffrey S. Horton, Vice President and Treasurer
(Principal Financial Officer)
DATE March 29, 2001
BY /s/ Philip C. Wentzel *
NAME AND TITLE Philip C. Wentzel, Vice President and Controller
(Principal Accounting Officer)
DATE March 29, 2001
BY /s/ Rodney P. Burwell * *
NAME AND TITLE Rodney P. Burwell, Director
DATE March 29, 2001
BY /s/ Charles W. Johnson * *
NAME AND TITLE Charles W. Johnson, Director
DATE March 29, 2001
BY /s/ Jean B. Keffeler * *
NAME AND TITLE Jean B. Keffeler, Director
DATE March 29, 2001
BY /s/ Richard W. Kling * *
NAME AND TITLE Richard W. Kling, Chairman of the Board
of Directors and Director
DATE March 29, 2001
BY /s/ Thomas R. McBurney * *
NAME AND TITLE Thomas R. McBurney, Director
DATE March 29, 2001
BY /s/ Pamela J. Moret * *
NAME AND TITLE Pamela J. Moret, Director
DATE March 29, 2001
* Signed pursuant to Officers' Power of Attorney dated October 12, 2000, filed
electronically as Exhibit 24(a) to Registrant's September 30, 2000 Quarterly
Report on Form 10-Q, is incorporated herein by reference.
- --------------------------------
Monica P. Vickman
* * Signed pursuant to Directors' Power of Attorney dated October 12, 2000,
filed electronically as Exhibit 24(b) to Registrant's September 30, 2000
Quarterly Report on Form 10-Q, is incorporated herein by reference.
- --------------------------------
Monica P. Vickman
American Express Certificate Company
Responsibility for Preparation of Financial Statements
The management of American Express Certificate Company (AECC) is responsible for
the preparation and fair presentation of its financial statements. The financial
statements have been prepared in conformity with accounting principles generally
accepted in the United States which are appropriate in the circumstances, and
include amounts based on the best judgment of management. AECC's management is
also responsible for the accuracy and consistency of other financial information
included in this Form 10-K.
In recognition of its responsibility for the integrity and objectivity of data
in the financial statements, AECC maintains a system of internal control over
financial reporting. The system is designed to provide reasonable, but not
absolute, assurance with respect to the reliability of AECC's financial
statements. The concept of reasonable assurance is based on the notion that the
cost of internal control should not exceed the benefits derived.
Internal control is founded on an ethical climate and includes an organizational
structure with clearly defined lines of responsibility, policies and procedures,
a Code of Conduct, and the careful selection and training of employees. Internal
auditors monitor and assess the effectiveness of internal control and report
their findings to management throughout the year. AECC's independent auditors
are engaged to express an opinion on the year-end financial statements and, with
the coordinated support of the internal auditors, review the financial records
and related data and test internal controls over financial reporting.
REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Security Holders
American Express Certificate Company:
We have audited the accompanying balance sheets of American Express Certificate
Company ( formerly IDS Certificate Company) a wholly owned subsidiary of
American Express Financial Corporation, as of December 31, 2000 and 1999, and
the related statements of operations, comprehensive income, stockholder's
equity, and cash flows for each of the three years in the period ended December
31, 2000. Our audits also included the financial statement schedules listed in
the index at Item 8. These financial statements and schedules are the
responsibility of the management of American Express Certificate Company. Our
responsibility is to express an opinion on these financial statements and
schedules based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
schedules are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and schedules. Our procedures included confirmation of investments
owned as of December 31, 2000 and 1999, by correspondence with custodians. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of American Express Certificate
Company at December 31, 2000 and 1999, and the results of its operations and its
cash flows for each of the three years in the period ended December 31, 2000, in
conformity with accounting principles generally accepted in the United States.
Also, in our opinion, the related financial statement schedules, when considered
in relation to the basic financial statements taken as a whole, present fairly
in all material respects the information set forth therein.
/s/ ERNST & YOUNG LLP
ERNST & YOUNG LLP
Minneapolis, Minnesota
February 8, 2001
Balance Sheets, Dec. 31,
Assets
($ thousands) 2000 1999
Qualified Assets (note 2)
Investments in unaffiliated issuers (notes 3, 4 and 10):
Cash and cash equivalents $ 58,711 $ 47,086
Held-to-maturity securities 317,732 464,648
Available-for-sale securities 3,122,950 2,620,747
First mortgage loans on real estate 358,575 378,047
Certificate loans-- secured by certificate reserves 25,547 28,895
Investments in and advances to affiliates 422 422
Total investments 3,883,937 3,539,845
Receivables:
Dividends and interest 47,901 41,584
Investment securities sold 1,070 953
Total receivables 48,971 42,537
Other (note 9) 53,015 123,845
Total qualified assets 3,985,923 3,706,227
Other Assets
Deferred federal income taxes (note 8) 30,501 42,590
Due from Parent for federal income taxes 7,016 --
Deferred distribution fees and other 9,305 12,251
Total other assets 46,822 54,841
Total assets $4,032,745 $3,761,068
Balance Sheets, Dec. 31, (continued)
Liabilities and Stockholder's Equity
($ thousands, except share amounts) 2000 1999
Liabilities
Certificate Reserves (note 5):
Installment certificates:
Reserves to mature $ 215,971 $ 263,204
Additional credits and accrued interest 7,088 10,932
Advance payments and accrued interest 697 838
Other 55 56
Fully paid certificates:
Reserves to mature 3,537,832 3,120,351
Additional credits and accrued interest 69,155 140,988
Due to unlocated certificate holders 261 290
Total certificate reserves 3,831,059 3,536,659
Accounts Payable and Accrued Liabilities:
Due to Parent (note 7A) 771 733
Due to Parent for federal income taxes -- 4,126
Due to other affiliates (notes 7B through 7E) 730 515
Reverse repurchase agreements -- 25,000
Payable for investment securities purchased 1,946 1,734
Other (notes 9 and 10) 31,725 50,599
Total accounts payable and accrued liabilities 35,172 82,707
Total liabilities 3,866,231 3,619,366
Commitments (note 4)
Stockholder's Equity (notes 5B, 5C, and 6)
Common stock, $10 par-- authorized and issued 150,000 shares 1,500 1,500
Additional paid-in capital 143,844 143,844
Retained earnings:
Appropriated for predeclared additional credits/interest 2,684 2,879
Appropriated for additional interest on advance payments 15 10
Unappropriated 70,937 59,210
Accumulated other comprehensive loss-- net of tax (note 1) (52,466) (65,741)
Total stockholder's equity 166,514 141,702
Total liabilities and stockholder's equity $4,032,745 $3,761,068
See notes to financial statements.
Statements of Operations
Year ended Dec. 31, ($ thousands) 2000 1999 1998
Investment Income
Interest income from unaffiliated investments:
Bonds and notes $204,923 $188,062 $209,408
Mortgage loans on real estate 26,675 27,294 18,173
Certificate loans 1,471 1,662 1,896
Dividends 32,478 35,228 40,856
Other 559 2,098 2,802
Total investment income 266,106 254,344 273,135
Investment Expenses
Parent and affiliated company fees (note 7):
Distribution 31,209 31,484 33,783
Investment advisory and services 8,779 8,692 9,084
Transfer agent 3,300 3,572 3,932
Depository 254 238 250
Options (note 9) 43,430 31,095 21,012
Reverse repurchase agreements 124 677 3,689
Interest rate swap agreements (note 9) 17 1,146 4,676
Other 410 331 385
Total investment expenses 87,523 77,235 76,811
Net investment income before provision for
certificate reserves and income tax (expense) benefit 178,583 177,109 196,324
Provision for Certificate Reserves (notes 5 and 9)
According to the terms of the certificates:
Provision for certificate reserves 12,599 11,493 9,623
Interest on additional credits 714 874 1,032
Interest on advance payments 33 33 44
Additional credits/interest authorized by AECC:
On fully paid certificates 134,633 118,371 146,434
On installment certificates 8,483 8,676 11,001
Total provision for certificate reserves before reserve recoveries 156,462 139,447 168,134
Reserve recoveries from terminations prior to maturity (1,001) (892) (1,026)
Net provision for certificate reserves 155,461 138,555 167,108
Net investment income before income tax (expense) benefit 23,122 38,554 29,216
Income tax (expense) benefit (note 8) (14) (4,615) 265
Net investment income 23,108 33,939 29,481
Net realized (loss) gain on investments
Securities of unaffiliated issuers before income tax expense (10,110) 1,250 5,143
Income tax (expense) benefit (note 8):
Current (537) (1,151) (1,800)
Deferred 4,076 714 --
Total income tax (expense) benefit 3,539 (437) (1,800)
Net realized (loss) gain on investments (6,571) 813 3,343
Net income-- wholly owned subsidiary -- 4 1,646
Net income $ 16,537 $ 34,756 $ 34,470
See notes to financial statements.
Statements of Comprehensive Income
Year ended Dec. 31, ($ thousands) 2000 1999 1998
Net income $ 16,537 $ 34,756 $ 34,470
Other comprehensive income (loss) (note 1)
Unrealized gains (losses) on available-for-sale securities:
Unrealized holding gains (losses) arising during year 21,840 (112,460) (32,020)
Income tax (expense) benefit (7,644) 39,361 11,207
Net unrealized holding gains (losses) arising during period 14,196 (73,099) (20,813)
Reclassification adjustment for gains included in net income (1,417) (3,058) (2,514)
Income tax expense 496 1,070 880
Net reclassification adjustment for gains included in net income (921) (1,988) (1,634)
Net other comprehensive income (loss) 13,275 (75,087) (22,447)
Total comprehensive income (loss) $29,812 $ (40,331) $ 12,023
See notes to financial statements.
Statements of Stockholder's Equity
Year ended Dec. 31, ($ thousands) 2000 1999 1998
Common Stock
Balance at beginning and end of year $ 1,500 $ 1,500 $ 1,500
Additional Paid-in Capital
Balance at beginning and end of year $143,844 $143,844 $143,844
Retained Earnings
Appropriated for predeclared additional credits/interest (note 5B)
Balance at beginning of year $ 2,879 $ 3,710 $ 6,375
Transferred to unappropriated retained earnings (195) (831) (2,665)
Balance at end of year $ 2,684 $ 2,879 $ 3,710
Appropriated for additional interest on advance payments (note 5C)
Balance at beginning of year $ 10 $ 10 $ 50
Transferred from (to) unappropriated retained earnings 5 -- (40)
Balance at end of year $ 15 $ 10 $ 10
Unappropriated (note 6)
Balance at beginning of year $ 59,210 $ 63,623 $ 55,948
Net income 16,537 34,756 34,470
Transferred from appropriated retained earnings 190 831 2,705
Cash dividends declared (5,000) (40,000) (29,500)
Balance at end of year $ 70,937 $ 59,210 $ 63,623
Accumulated other comprehensive (loss) income-- net of tax (note 1)
Balance at beginning of year $(65,741) $ 9,346 $ 31,793
Net other comprehensive income (loss) 13,275 (75,087) (22,447)
Balance at end of year $(52,466) $(65,741) $ 9,346
Total stockholder's equity $ 166,514 $ 141,702 $222,033
See notes to financial statements.
Statements of Cash Flows
Year ended Dec. 31, ($ thousands) 2000 1999 1998
Cash Flows from Operating Activities
Net income $ 16,537 $ 34,756 $ 34,470
Adjustments to reconcile net income to net cash provided by operating
activities:
Net income of wholly owned subsidiary -- (4) (1,646)
Net provision for certificate reserves 155,461 138,555 167,108
Interest income added to certificate loans (914) (1,037) (1,180)
Amortization of premiums/discounts-net 42,192 29,030 22,620
Provision for deferred federal income taxes 4,940 (1,063) (3,088)
Net realized loss (gain) on investments before income taxes 10,110 (1,250) (5,143)
(Increase) decrease in dividends and interest receivable (6,317) 4,995 2,238
Decrease in deferred distribution fees 2,946 3,533 5,310
(Increase) decrease in other assets (7,016) 1,082 (1,082)
(Decrease) increase in other liabilities (2,823) (18,390) 16,814
Net cash provided by operating activities 215,116 190,207 236,421
Cash Flows from Investing Activities
Maturity and redemption of investments:
Held-to-maturity securities 138,150 134,907 161,649
Available-for-sale securities 447,643 426,257 468,218
Other investments 68,877 73,387 76,894
Sale of investments:
Held-to-maturity securities 8,836 -- 6,245
Available-for-sale securities 312,612 107,244 344,901
Certificate loan payments 3,399 4,162 4,006
Purchase of investments:
Held-to-maturity securities (161) (6,785) (1,034)
Available-for-sale securities (1,250,487) (554,270) (663,347)
Other investments (49,460) (102,183) (189,905)
Certificate loan fundings (3,197) (3,680) (3,703)
Net cash (used in) provided by investing activities (323,788) 79,039 203,924
Cash Flows from Financing Activities
Payments from certificate owners 1,667,475 1,596,079 1,192,026
Proceeds from reverse repurchase agreements -- 123,500 919,500
Dividend from wholly owned subsidiary -- -- 8,000
Certificate maturities and cash surrenders (1,517,178) (1,662,239) (1,729,871)
Payments under reverse repurchase agreements (25,000) (239,500) (800,500)
Dividends paid (5,000) (40,000) (29,500)
Net cash provided by (used in) financing activities 120,297 (222,160) (440,345)
Net increase in cash and cash equivalents 11,625 47,086 --
Cash and cash equivalents at beginning of year 47,086 -- --
Cash and cash equivalents at end of year $ 58,711 $ 47,086 $ --
Supplemental Disclosures Including Non-cash Transactions
Cash paid (received) for income taxes $ 2,558 $ 9,233 $ (1,217)
Certificate maturities and surrenders through loan reductions 4,060 4,003 5,632
See notes to financial statements.
Notes to Financial Statements
($ in thousands unless indicated otherwise)
1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of business
American Express Certificate Company (AECC), formerly IDS Certificate Company,
is a wholly owned subsidiary of American Express Financial Corporation (Parent),
which is a wholly owned subsidiary of American Express Company. AECC is
registered as an investment company under the Investment Company Act of 1940
("the 1940 Act") and is in the business of issuing face-amount investment
certificates. The certificates issued by AECC are not insured by any government
agency. AECC's certificates are sold primarily by American Express Financial
Advisors Inc.'s (AEFA) (an affiliate) field force operating in 50 states, the
District of Columbia and Puerto Rico. AECC's Parent acts as investment advisor
for AECC.
On Jan. 28, 2000, the AECC Board of Directors approved the name change of IDS
Certificate Company to American Express Certificate Company effective April 26,
2000.
AECC currently offers ten types of certificates with specified maturities
ranging from 10 to 20 years. Within their specified maturity, most certificates
have interest rate terms of one- to 36-months. In addition, three types of
certificates have interest tied, in whole or in part, to any upward movement in
a broad-based stock market index. Except for two types of certificates, all of
the certificates are available as qualified investments for Individual
Retirement Accounts or 401(k) plans and other qualified retirement plans.
AECC's gross income is derived primarily from interest and dividends generated
by its investments. AECC's net income is determined by deducting from such gross
income its provision for certificate reserves, and other expenses, including
taxes, the fee paid to Parent for investment advisory and other services, and
the distribution fees paid to AEFA.
Described below are certain accounting policies that are important to an
understanding of the accompanying financial statements.
Basis of financial statement presentation
The accompanying financial statements are presented in accordance with
accounting principles generally accepted in the United States. AECC uses the
equity method of accounting for its wholly owned unconsolidated subsidiary,
which is the method prescribed by the Securities and Exchange Commission (SEC)
for non-investment company subsidiaries of issuers of face-amount certificates.
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities and the reported amounts of
income and expenses during the year then ended. Actual results could differ from
those estimates.
Fair values of financial instruments
The fair values of financial instruments disclosed in the notes to financial
statements are estimates based upon current market conditions and perceived
risks, and require varying degrees of management judgment.
Preferred stock dividend income
AECC recognizes dividend income from cumulative redeemable preferred stocks with
fixed maturity amounts on an accrual basis similar to that used for recognizing
interest income on debt securities. Dividend income from perpetual preferred
stock is recognized on an ex-dividend basis.
Investment securities
Cash equivalents are carried at amortized cost, which approximates fair value.
AECC has defined Cash and cash equivalents as cash in banks and highly liquid
investments with a maturity of three months or less at acquisition and are not
interest rate sensitive.
Debt securities that AECC has both the positive intent and ability to hold to
maturity are carried at amortized cost. Debt securities AECC does not have the
positive intent to hold to maturity, as well as all marketable equity
securities, are classified as Available for sale and carried at fair value.
Unrealized holding gains and losses on securities classified as Available for
sale are carried, net of deferred income taxes, as Accumulated other
comprehensive loss in Stockholder's Equity.
The basis for determining cost in computing realized gains and losses on
securities is specific identification. When there is a decline in value that is
other than temporary, the securities are carried at fair value with the amount
of adjustment included in income.
First mortgage loans on real estate
Mortgage loans are carried at amortized cost, less reserves for losses, which is
the basis for determining any realized gains or losses. The estimated fair value
of the mortgage loans is determined by a discounted cash flow analysis using
mortgage interest rates currently offered for mortgages of similar maturities.
Impairment is measured as the excess of the loan's recorded investment over its
present value of expected principal and interest payments discounted at the
loan's effective interest rate, or the fair value of collateral. The amount of
the impairment is recorded in a reserve for mortgage loan losses.
The reserve for mortgage loan losses is maintained at a level that management
believes is adequate to absorb estimated losses in the portfolio. The level of
the reserve account is determined based on several factors, including historical
experience, expected future principal and interest payments, estimated
collateral values, and current and anticipated economic and political
conditions. Management regularly evaluates the adequacy of the reserve for
mortgage loan losses.
AECC generally stops accruing interest on mortgage loans for which interest
payments are delinquent more than three months. Based on management's judgment
as to the ultimate collectibility of principal, interest payments received are
either recognized as income or applied to the recorded investment in the loan.
Certificates
Investment certificates may be purchased either with a lump-sum payment or by
installment payments. Certificate owners are entitled to receive at maturity a
definite sum of money. Payments from certificate owners are credited to
investment certificate reserves. Investment certificate reserves accumulate
interest at specified percentage rates as declared by AECC. Reserves also are
maintained for advance payments made by certificate owners, accrued interest
thereon, and for additional credits in excess of minimum guaranteed rates and
accrued interest thereon. On certificates allowing for the deduction of a
surrender charge, the cash surrender values may be less than accumulated
investment certificate reserves prior to maturity dates. Cash surrender values
on certificates allowing for no surrender charge are equal to certificate
reserves. The payment distribution, reserve accumulation rates, cash surrender
values, reserve values and other matters are governed by the 1940 Act.
Deferred distribution fee expense
On certain series of certificates, distribution fees are deferred and amortized
over the estimated lives of the related certificates, which is approximately 10
years. Upon surrender prior to maturity, unamortized deferred distribution fees
are recognized in expense and any related surrender charges are recognized as a
reduction in Provision for certificate reserves.
Federal income taxes
AECC's taxable income or loss is included in the consolidated federal income tax
return of American Express Company. AECC provides for income taxes on a separate
return basis, except that, under an agreement between Parent and American
Express Company, tax benefits are recognized for losses to the extent they can
be used in the consolidated return. It is the policy of the Parent and its
subsidiaries that the Parent will reimburse a subsidiary for any tax benefits
recorded.
Accounting developments
In June 1998, the Financial Accounting Standards Board (FASB) issued, and
subsequently amended, Statement of Financial Accounting Standards (SFAS) No.
133, "Accounting for Derivative Instruments and Hedging Activities," which AECC
adopted on Jan. 1, 2001. This Statement establishes accounting and reporting
standards for derivative instruments, including some embedded in other
contracts, and hedging activities. It requires that an entity recognize all
derivatives as either assets or liabilities on the balance sheet and measure
those instruments at fair value.
Changes in the fair value of a derivative will be recorded in income or directly
to equity, depending on the instrument's designated use. Upon adoption of SFAS
No. 133, AECC will use cash flow hedge accounting on its interest rate swaps.
A one-time opportunity to reclassify held-to-maturity investments to
available-for-sale is allowed without tainting the remaining securities in the
held-to-maturity portfolio. AECC has elected to take this opportunity to reclass
its held-to-maturity investments to available-for-sale.
As of Jan 1, 2001, the cumulative impact of applying the Statement's accounting
requirements will not have a significant impact on AECC's financial position or
results of operations.
2. DEPOSIT OF ASSETS AND MAINTENANCE OF QUALIFIED ASSETS
A) Under the provisions of its certificates and the 1940 Act, AECC was required
to have Qualified Assets (as that term is defined in Section 28(b) of the 1940
Act) in the amount of $3,829,659 and $3,476,365 at Dec. 31, 2000 and 1999,
respectively. AECC had Qualified Assets of $4,064,694 at Dec. 31, 2000 and
$3,805,634 at Dec. 31, 1999, excluding net unrealized depreciation on
Available-for-sale securities of $80,717 and $101,141 at Dec. 31, 2000 and 1999,
respectively, and Payable for investment securities purchased of $1,946 and
$1,734 at Dec. 31, 2000 and 1999, respectively.
Qualified assets are valued in accordance with such provisions of Minnesota
Statutes as are applicable to investments of life insurance companies. Qualified
assets for which no provision for valuation is made in such statutes are valued
in accordance with rules, regulations or orders prescribed by the SEC. These
values are the same as financial statement carrying values, except for debt
securities classified as available for sale and all marketable equity
securities, which are carried at fair value in the financial statements but are
valued at amortized cost for qualified asset and deposit maintenance purposes.
B) Pursuant to provisions of the certificates, the 1940 Act, the central
depository agreement and to requirements of various states, qualified assets of
AECC were deposited as follows:
Dec. 31, 2000
Required
Deposits deposits Excess
Deposits to meet certificate liability requirements:
States $ 360 $ 320 $ 40
Central Depository 4,051,611 3,800,923 250,688
Total $4,051,971 $3,801,243 $250,728
Dec. 31, 1999
Required
Deposits deposits Excess
Deposits to meet certificate liability requirements:
States $ 364 $ 325 $ 39
Central Depository 3,682,847 3,444,056 238,791
Total $3,683,211 $3,444,381 $238,830
The assets on deposit at Dec. 31, 2000 and 1999 consisted of securities having a
deposit value of $3,589,196 and $3,217,101, respectively; mortgage loans of
$358,575 and $378,047, respectively; and other assets of $104,200 and $88,063,
respectively.
American Express Trust Company is the central depository for AECC. See note 7C.
3. INVESTMENTS IN SECURITIES
A) Fair values of investments in securities represent market prices or estimated
fair values when quoted prices are not available. Estimated fair values are
determined by using established procedures, involving review of market indexes,
price levels of current offerings and comparable issues, price estimates and
market data from independent brokers and financial files. The procedures are
reviewed annually. AECC's vice president, investments, reports to the board of
directors on an annual basis regarding such pricing sources and procedures to
provide assurance that fair value is being achieved.
A summary of Held-to-maturity securities and Available-for-sale securities at
Dec. 31, is as follows:
2000
Gross Gross
Amortized Fair unrealized unrealized
cost value gains losses
Held to maturity:
U.S. Government and agencies obligations $ 161 $ 169 $ 8 $ --
Mortgage-backed securities 12,604 12,764 160 --
Corporate debt securities 35,794 35,845 713 662
Stated maturity preferred stock 269,173 271,902 5,974 3,245
Total $ 317,732 $ 320,680 $ 6,855 $ 3,907
Available for sale:
U.S. Government and agencies obligations $ 199 $ 205 $ 6 $ --
Mortgage-backed securities 1,106,998 1,121,923 15,747 822
State and municipal obligations 17,911 18,281 370 --
Corporate debt securities 1,902,799 1,810,187 13,715 106,327
Stated maturity preferred stock 66,752 66,134 565 1,183
Perpetual preferred stock 109,008 106,220 533 3,321
Total $3,203,667 $3,122,950 $30,936 $111,653
1999
Gross Gross
Amortized Fair unrealized unrealized
cost value gains losses
Held to maturity:
U.S. Government and agencies obligations $ 364 $ 365 $ 1 $ --
Mortgage-backed securities 16,662 16,596 178 244
Corporate debt securities 78,267 78,970 1,402 699
Stated maturity preferred stock 369,355 375,052 6,398 701
Total $ 464,648 $ 470,983 $ 7,979 $ 1,644
Available for sale:
Mortgage-backed securities $ 773,120 $ 763,195 $ 2,339 $ 12,264
State and municipal obligations 33,430 33,615 265 80
Corporate debt securities 1,743,621 1,653,271 1,944 92,294
Stated maturity preferred stock 62,708 62,370 292 630
Perpetual preferred stock 109,009 108,296 574 1,287
Total $2,721,888 $2,620,747 $ 5,414 $106,555
The Amortized cost and Fair value of Held-to-maturity securities and
Available-for-sale securities, by contractual maturity, at Dec. 31, 2000, are
shown below. Cash flows may differ from contractual maturities because issuers
may have the right to call or prepay obligations.
Amortized Fair
cost value
Held to maturity:
Due within 1 year $ 50,996 $ 52,326
Due after 1 year through 5 years 105,431 105,067
Due after 5 years through 10 years 148,701 150,523
305,128 307,916
Mortgage-backed securities 12,604 12,764
Total $ 317,732 $ 320,680
Available for sale:
Due within 1 year $ 125,591 $ 125,682
Due after 1 year through 5 years 1,043,320 1,032,010
Due after 5 years through 10 years 493,840 414,700
Due after 10 years 324,910 322,415
1,987,661 1,894,807
Mortgage-backed securities 1,106,998 1,121,923
Perpetual preferred stock 109,008 106,220
Total $3,203,667 $3,122,950
During the years ended Dec. 31, 2000 and 1999, there were no securities
classified as trading securities.
The proceeds from sales of Available-for-sale securities and the gross realized
gains and gross realized losses on those sales during the years ended Dec. 31,
were as follows:
2000 1999 1998
Proceeds $312,728 $105,112 $346,353
Gross realized gains 4,447 3,270 4,487
Gross realized losses 3,136 195 1,461
During the years ended Dec. 31, 2000 and 1999, AECC recognized losses of $11,413
and $2,141, respectively, due to declines in the fair value of
available-for-sale securities that were other than temporary. These amounts are
reflected in Net unrealized loss on investments in the Statements of Operations.
No such losses were recognized during the year ended Dec. 31, 1998.
Sales of Held-to-maturity securities, due to credit concerns and acceptance of a
tender offer during the year ended Dec. 31, 2000, and acceptance of a tender
offer during the year ended Dec. 31, 1998, were as follows:
2000 1999 1998
Amortized cost $9,015 $-- $6,182
Gross realized gains 94 -- 63
Gross realized losses 273 -- --
There were no sales of Held-to-maturity securities during the year ended Dec.
31, 1999.
During the years ended Dec. 31, 2000 and 1999, no securities were reclassified
from held to maturity to available for sale.
B) Investments in securities with fixed maturities comprised 87% and 84% of
AECC's total invested assets at Dec. 31, 2000 and 1999, respectively. Securities
are rated by Moody's and Standard & Poors (S&P), or by Parent's internal
analysts, using criteria similar to Moody's and S&P, when a public rating does
not exist. A summary of investments in securities with fixed maturities by
rating of investment is as follows:
Rating 2000 1999
Aaa/AAA 44% 36%
Aa/AA 1 2
Aa/A 1 2
A/A 13 15
A/BBB 3 3
Baa/BBB 28 31
Below investment grade 10 11
100% 100%
Of the securities rated Aaa/AAA, 73% and 72% at Dec. 31, 2000 and 1999,
respectively, are U.S. Government Agency mortgage-backed securities that are not
rated by a public rating agency. At Dec. 31, 2000 and 1999, approximately 13% of
securities with fixed maturities, other than U.S. Government Agency
mortgage-backed securities, are rated by Parent's internal analysts.
At Dec. 31, 2000 and 1999 no one issuer, other than U.S. Government Agency
mortgage-backed securities, is greater than 1% of AECC's total investment in
securities with fixed maturities.
C) AECC reserves freedom of action with respect to its acquisition of restricted
securities that offer advantageous and desirable investment opportunities. In a
private negotiation, AECC may purchase for its portfolio all or part of an issue
of restricted securities. Since AECC would intend to purchase such securities
for investment and not for distribution, it would not be "acting as a
distributor" if such securities are resold by AECC at a later date.
The fair values of restricted securities are determined by the board of
directors using the procedures and factors described in note 3A.
In the event AECC were to be deemed to be a distributor of the restricted
securities, it is possible that AECC would be required to bear the costs of
registering those securities under the Securities Act of 1933, although in most
cases such costs would be incurred by the issuer of the restricted securities.
4. INVESTMENTS IN FIRST MORTGAGE LOANS ON REAL ESTATE
At Dec. 31, 2000 and 1999, AECC's recorded investment in impaired mortgage loans
was $155 and $233, respectively, and the reserve for loss on those amounts was
$nil and $161, respectively. During 2000, 1999 and 1998, the average recorded
investment in impaired mortgage loans was $195, $267 and $331, respectively.
AECC recognized $13, $25 and $31 of interest income related to impaired mortgage
loans for the years ended Dec. 31, 2000, 1999 and 1998, respectively.
The reserve for loss on mortgage loans increased $233 during the year ended Dec.
31, 2000, from $511 at Dec. 31, 1999 to $744 at Dec. 31, 2000 and decreased $100
during the year ended Dec. 31, 1999, from $611 at Dec. 31, 1998, to $511 at Dec.
31, 1999. During the year ended Dec. 31, 1998, there was no change in the
reserve for loss on mortgage loans of $611.
At Dec. 31, 2000 and 1999, approximately 9% and 10%, respectively, of AECC's
invested assets were First mortgage loans on real estate. A summary of First
mortgage loans on real estate by Region and Property Type at Dec. 31, is as
follows:
Region 2000 1999
South Atlantic 20% 20%
West North Central 18 19
East North Central 16 16
Mountain 16 16
West South Central 12 12
Pacific 7 7
New England 6 5
Middle Atlantic 5 5
Total 100% 100%
Property Type 2000 1999
Office buildings 28% 29%
Retail/shopping centers 27 26
Apartments 17 17
Industrial buildings 15 15
Other 13 13
Total 100% 100%
The Carrying amounts and Fair values of First mortgage loans on real estate at
Dec. 31, follows: The Fair values are estimated using discounted cash flow
analysis, using market interest rates currently being offered for loans with
similar maturities.
Dec. 31, 2000 Dec. 31, 1999
Carrying Fair Carrying Fair
amount value amount value
First mortgage loans on real estate $359,319 $356,283 $378,558 $359,018
Reserve for losses (744) -- (511) --
Net first mortgage loans on real estate $358,575 $356,283 $378,047 $359,018
At Dec. 31, 2000 and 1999, commitments for fundings of first mortgage loans, at
market interest rates, aggregated $1,200 and $800, respectively. AECC holds the
mortgage document, which gives it the right to take possession of the property
if the borrower fails to perform according to the terms of the agreements. AECC
employs policies and procedures to ensure the creditworthiness of the borrowers
and that funds will be available on the funding date. AECC's loan fundings are
restricted to 80% or less of the market value of the real estate at the time of
the loan funding. Management believes there is no fair value for these
commitments.
5. CERTIFICATE RESERVES
Reserves maintained on outstanding certificates have been computed in accordance
with the provisions of the certificates and Section 28 of the 1940 Act. The
average rates of accumulation on certificate reserves at Dec. 31, were as
follows:
2000
Average Average
gross additional
Reserve accumulation credit
balance rate rate
Installment certificates:
Reserves to mature:
With guaranteed rates $ 16,217 3.50% 1.65%
Without guaranteed rates (A) 199,754 -- 4.13
Additional credits and accrued interest 7,088 3.17 --
Advance payments and accrued interest (C) 697 3.22 1.93
Other 55 -- --
Fully paid certificates:
Reserves to mature:
With guaranteed rates 113,194 3.20 1.78
Without guaranteed rates (A) and (D) 3,424,638 -- 3.06
Additional credits and accrued interest 69,155 3.12 --
Due to unlocated certificate holders 261 -- --
Total $3,831,059
1999
Average Average
gross additional
Reserve accumulation credit
balance rate rate
Installment certificates:
Reserves to mature:
With guaranteed rates $ 18,817 3.50% .50%
Without guaranteed rates (A) 244,387 -- 3.14
Additional credits and accrued interest 10,932 3.16 --
Advance payments and accrued interest (C) 838 3.20 1.30
Other 56 -- --
Fully paid certificates:
Reserves to mature:
With guaranteed rates 129,019 3.20 .95
Without guaranteed rates (A) and (D) 2,991,332 -- 4.13
Additional credits and accrued interest 140,988 3.15 --
Due to unlocated certificate holders 290 -- --
Total $3,536,659
A) There is no minimum rate of accrual on these reserves. Interest is declared
periodically, quarterly or annually, in accordance with the terms of the
separate series of certificates.
B) On certain series of single payment certificates, additional interest is
predeclared for periods greater than one year. At Dec. 31, 2000, $2,684 of
retained earnings had been appropriated for the predeclared additional interest,
which represents the difference between certificate reserves on these series,
calculated on a statutory basis, and the reserves maintained per books.
C) Certain series of installment certificates guarantee accrual of interest on
advance payments at an average of 3.22%. AECC has increased the rate of accrual
to 5.15% through April 30, 2002. An appropriation of retained earnings amounting
to $15 has been made, which represents the estimated additional accrual that
will result from the increase granted by AECC.
D) American Express Stock Market Certificate, American Express Market Strategy
Certificate and American Express Equity Indexed Savings Certificate enable the
certificate owner to participate in any relative rise in a major stock market
index without risking loss of principal. Generally the certificates have a term
of 12 months and may continue for up to 20 successive terms. The reserve balance
on these certificates at Dec. 31, 2000 and 1999 was $1,063,383 and $886,240,
respectively.
E) Fair values of certificate reserves with interest rate terms of one year or
less approximated the carrying values less any applicable surrender charges.
Fair values for other certificate reserves are determined by a discounted cash
flow analysis using interest rates currently offered for certificates with
similar remaining terms, less any applicable surrender charges.
The Carrying amounts and Fair values of certificate reserves at Dec. 31, consisted of the following:
2000 1999
Carrying Fair Carrying Fair
amount value amount value
Reserves with terms of one year or less $3,576,811 $3,575,189 $3,246,098 $3,244,495
Other 254,248 254,499 290,561 294,899
Total certificate reserves 3,831,059 3,829,688 3,536,659 3,539,394
Unapplied certificate transactions 1,255 1,255 756 756
Certificate loans and accrued interest (25,843) (25,843) (29,219) (29,219)
Total $3,806,471 $3,805,100 $3,508,196 $3,510,931
6. DIVIDEND RESTRICTION
Certain series of installment certificates outstanding provide that cash
dividends may be paid by AECC only in calendar years for which additional
credits of at least one-half of 1% on such series of certificates have been
authorized by AECC. This restriction has been removed for 2001 and 2002 by
AECC's declaration of additional credits in excess of this requirement.
7. FEES PAID TO PARENT AND AFFILIATED COMPANIES ($ NOT IN THOUSANDS)
A) The basis of computing fees paid or payable to Parent for Investment
advisory, joint facilities, technology support and treasury services is:
The investment advisory and services agreement with Parent provides for a
graduated scale of fees equal on an annual basis to 0.750% on the first $250
million of total book value of assets of AECC, 0.650% on the next $250 million,
0.550% on the next $250 million, 0.500% on the next $250 million and 0.107% on
the amount in excess of $1 billion. Effective Jan. 1, 1998, the fee on the
amount in excess of $1 billion was changed from 0.450% to 0.107%. The fee is
payable monthly in an amount equal to one-twelfth of each of the percentages set
forth above. Excluded from assets for purposes of this computation are first
mortgage loans, real estate and any other asset on which AECC pays an outside
service fee.
B) The basis of computing fees paid or payable to American Express Financial
Advisors Inc. (AEFA) (an affiliate) for Distribution services is:
Fees payable to AEFA on sales of AECC's certificates are based upon terms of
agreements giving AEFA the right to distribute the certificates covered under
the agreements. The agreements provide for payment of fees over a period of
time.
From time to time, AECC may sponsor or participate in sales promotions involving
one or more of the certificates and their respective terms. These promotions may
offer a special interest rate to attract new clients or retain existing clients.
To cover the cost of these promotions, distribution fees paid to AEFA may be
lowered. For the promotion of the seven-month interest rate term IDS Flexible
Savings Certificate which occurred March 10, 1999 to June 8, 1999, and the
promotion of the seven- and 13-month interest rate term IDS Flexible Savings
Certificate which occurred August 4, 1999 to April 25, 2000, the distribution
fee was lowered to 0.067%.
The Aggregate fees payable under the agreements per $1,000 face amount of
installment certificates and a summary of the periods over which the fees are
payable are:
Number of
certificate
years over
Aggregate fees payable which
subsequent
First Subsequent years' fees
Total year years are payable
On sales effective April 30, 1997 $25.00 $2.50 $22.50 9
Fees on the American Express Cash Reserve (formerly IDS Cash Reserve)
Certificate are paid at a rate of 0.20% of the purchase price at the time of
issuance and 0.20% of the reserves maintained for these certificates at the
beginning of the second and subsequent quarters from issue date.
Effective April 26, 2000, fees on the American Express Flexible Savings
(formerly IDS Flexible Savings) Certificate are paid at a rate of 0.08% of the
purchase price at the time of issuance and 0.08% of the reserves maintained for
these certificates at the beginning of the second and subsequent quarters from
issue date. For certificates sold from April 30, 1997 to April 25, 2000, fees
were paid at the rate of 0.20% of the purchase price at time of issuance and
0.20% of the reserves maintained for these certificates at the beginning of the
second and subsequent quarters from issue date.
Fees on the American Express Investors Certificate are paid at an annualized
rate of 1% of the reserves maintained for the certificates. Fees are paid at the
end of each term on certificates with a one-, two- or three-month term. Fees are
paid each quarter from date of issuance on certificates with a six-, 12-, 24- or
36-month term.
Fees on the American Express Preferred Investors (formerly IDS Preferred
Investors) Certificate are paid at a rate of 0.165% of the initial payment on
issue date of the certificate and 0.165% of the certificate's reserve at the
beginning of the second and subsequent quarters from issue date.
Effective April 28, 1999, fees on the American Express Stock Market (formerly
IDS Stock Market), sold through AEFA, and American Express Market Strategy
(formerly IDS Market Strategy) Certificates are paid at a rate of 0.90%. For
certificates sold from April 30, 1997 to April 27, 1999, fees were paid at the
rate of 0.70%. Fees are paid on the purchase price on the first day of the
certificate's term and on the reserves maintained for these certificates at the
beginning of each subsequent term.
Effective April 26, 2000, fees on the American Express Stock Market
Certificates, sold through American Express Bank International, are paid at a
rate of 0.90%. For certificates sold from April 28, 1999 to April 25, 2000, fees
were paid at the rate of 1.00%. For certificates sold from April 30, 1997 to
April 27, 1999, fees were paid at a rate of 1.25%. Fees are paid on the purchase
price on the first day of the certificate's term and on the reserves maintained
for these certificates at the beginning of each subsequent term.
Fees on the American Express Equity Indexed Savings Certificate are paid at a
rate of 1.00% of the initial investment on the first day of each certificate's
term and 1.00% of the certificate's reserve at the beginning of each subsequent
term.
C) The basis of computing Depository fees paid or payable to American Express
Trust Company (an affiliate) is:
Maintenance charge per account 5 cents per $1,000 of
assets on deposit
Transaction charge $20 per transaction
Security loan activity:
Depositary Trust Company receive/deliver $20 per transaction
Physical receive/deliver $25 per transaction
Exchange collateral $15 per transaction
A transaction consists of the receipt or withdrawal of securities and commercial
paper and/or a change in the security position. The charges are payable
quarterly except for maintenance, which is an annual fee.
D) The basis for computing fees paid or payable to American Express Bank Ltd.
(an affiliate) for the distribution of the American Express Special Deposits
Certificate on an annualized basis is:
1.25% of the reserves maintained for the certificates on an amount from $100,000
to $249,999, 0.80% on an amount from $250,000 to $499,999, 0.65% on an amount
from $500,000 to $999,999 and 0.50% on an amount $1,000,000 or more. Fees are
paid at the end of each term on certificates with a one-, two- or three-month
term. Fees are paid at the end of each quarter from date of issuance on
certificates with a six-, 12-, 24- or 36-month term.
E) The basis of computing Transfer agent fees paid or payable to American
Express Client Service Corporation (AECSC) (an affiliate) is:
Under a Transfer Agency Agreement effective Jan. 1, 1998, AECSC maintains
certificate owner accounts and records. AECC pays AECSC a monthly fee of
one-twelfth of $10.353 per certificate owner account for this service. Prior to
Jan. 1, 1998, AEFC provided this service to AECC under the investment advisory
and services agreement.
8. INCOME TAXES
Income tax (expense) benefit as shown in the Statements of Operations for the
three years ended Dec. 31, consists of:
2000 1999 1998
Federal:
Current $ 8,586 $(5,978) $(5,668)
Deferred (4,941) 1,063 4,183
3,645 (4,915) (1,485)
State (120) (137) (50)
Total income tax (expense) benefit $ 3,525 $(5,052) $(1,535)
Income tax (expense) benefit differs from that computed by using the U.S.
Statutory rate of 35%. The principal causes of the difference in each year are
shown below:
2000 1999 1998
Federal tax expense at
U.S. statutory rate $(4,554) $(13,932) $(12,026)
Tax-exempt interest 82 264 394
Dividend exclusion 8,064 8,730 10,121
Other, net 53 23 26
Federal tax (expense) benefit $ 3,645 $ (4,915) $ (1,485)
Deferred income taxes result from the net tax effects of temporary differences.
Temporary differences are differences between the tax bases of assets and
liabilities and their reported amounts in the financial statements that will
result in differences between income for tax purposes and income for financial
statement purposes in future years. Principal components of AECC's Deferred tax
assets and Deferred tax liabilities as of Dec. 31, are as follows:
Deferred tax assets 2000 1999
Certificate reserves $ 1,869 $21,741
Investment reserves 5,081 1,005
Investment unrealized losses 28,251 35,399
Investments 646 --
Other, net 18 19
Total deferred tax assets $35,865 $58,164
Deferred tax liabilities
Deferred distribution fees $ 3,255 $ 4,286
Purchased/written call options 1,523 10,494
Dividends receivable 543 490
Investments -- 261
Return of capital dividends 43 43
Total deferred tax liabilities 5,364 15,574
Net deferred tax assets $30,501 $42,590
AECC is required to establish a valuation allowance for any portion of the
Deferred tax assets that management believes will not be realized. In the
opinion of management, it is more likely than not that AECC will realize the
benefit of the Deferred tax assets and, therefore, no such valuation allowance
has been established.
9. DERIVATIVE FINANCIAL INSTRUMENTS
AECC enters into transactions involving derivative financial instruments as an
end user (nontrading). AECC uses these instruments to manage its exposure to
interest rate risk and equity price risk, including hedging specific
transactions. AECC manages risks associated with these instruments as described
below.
Market risk is the possibility that the value of the derivative financial
instrument will change due to fluctuations in a factor from which the instrument
derives its value, primarily an interest rate or a major market index. AECC is
not impacted by market risk related to derivatives held because derivatives are
largely used to manage risk and, therefore, the cash flows and income effects of
the derivatives are inverse to the effects of the underlying hedged
transactions.
Credit risk is the possibility that the counterparty will not fulfill the terms
of the contract. AECC monitors credit risk related to derivative financial
instruments through established approval procedures, including setting
concentration limits by counterparty, reviewing credit ratings and requiring
collateral where appropriate. At Dec. 31, 2000, AECC's counterparties to the
interest rate swaps are rated A or better by nationally recognized rating
agencies. The counterparties to the purchased call options are eight major
broker/dealers that are rated A or better by nationally recognized rating
agencies.
The notional or contract amount of a derivative financial instrument is
generally used to calculate the cash flows that are received or paid over the
life of the agreement. Notional amounts do not represent market or credit risk
and are not recorded on the Balance Sheets.
Credit risk related to derivative financial instruments is measured by the
replacement cost of those contracts at the balance sheet date. The replacement
cost represents the fair value of the instrument, and is determined by market
values, dealer quotes or pricing models.
AECC's holdings of derivative financial instruments at Dec. 31, were as follows:
2000
Notional Total
or contract Carrying Fair credit
amount value value risk
Assets:
Purchased S&P 500 futures $ 3 $ -- $ 2,003 $ --
Purchased call options 620 53,015 31,105 31,105
Total $53,015 $33,108 $31,105
Liabilities:
Interest rate swaps $500,000 $ -- $ 6,332 $ --
Written call options 620 27,822 9,664 --
Total $27,822 $15,996 $ --
1999
Notional Total
or contract Carrying Fair credit
amount value value risk
Assets:
Purchased call options $532 $123,845 $112,176 $112,176
Liabilities:
Written call options $532 $ 47,911 $ 65,625 $ --
Interest rate caps, corridors, floors and swaps, and options may be used to
manage AECC's exposure to changing interest rates. These instruments are used
primarily to protect the margin between the interest earned on investments and
the interest rate credited to investment certificate owners.
Interest rate swaps at Dec. 31, 2000, with a notional amount of $250,000 reset
monthly and $250,000 reset quarterly. AECC pays a fixed rate on the notional
amount ranging from 7.07% to 7.31% and receives a floating rate on the notional
amount tied to the London Interbank Offered Rate. There is no amount carried on
the Balance Sheets. Interest earned and interest expensed under the agreements
are shown net in Investment Expenses or Other Investment Income, as appropriate.
AECC offers a series of certificates which pays interest based upon the relative
change in a major stock market index between the beginning and end of the
certificates' term. The certificate owners have the option of participating in
the full amount of increase in the index during the term (subject to a specified
maximum) or a lesser percentage of the increase plus a guaranteed minimum rate
of interest. As a means of hedging its obligations under the provisions of these
certificates, AECC purchases and writes call options on the major market index.
The options are cash settlement options, that is, there is no underlying
security to deliver at the time the contract is closed out.
Each purchased (written) call option contract confers upon the holder the right
(obligation) to receive (pay) an amount equal to one hundred dollars times the
difference between the level of the major stock market index on the date the
call option is exercised and the strike price of the option.
The option contracts are less than one year in term. The premiums paid or
received on these index options are reported in Other Qualified Assets or Other
Liabilities, as appropriate, and are amortized into Investment Expenses over the
life of the option. The intrinsic value of these index options is also reported
in Other Qualified Assets or Other Liabilities, as appropriate. Changes in the
intrinsic value of these options are recognized currently in Provision for
certificate reserves.
On the same series of certificates, AECC also purchases futures on the index to
hedge its obligations. The futures are marked-to-market daily and exchange
traded, exposing AECC to no counterparty risk. For futures contracts that meet
the criteria for hedge accounting, gains and losses are deferred in Other
comprehensive income and will be recognized in Provision for certificate
reserves upon sale or disposition of the hedged investment. For futures that do
not meet the criteria for hedge accounting, gains and losses are recognized
currently in Provision for certificate reserves.
A summary of open option contracts at Dec. 31, is as follows:
2000
Contract Average Index at
amount strike price Dec. 31, 2000
Purchased call options $620 1,428 1,320
Written call options 620 1,580 1,320
1999
Contract Average Index at
amount strike price Dec. 31, 1999
Purchased call options $532 1,326 1,469
Written call options 532 1,453 1,469
10. FAIR VALUES OF FINANCIAL INSTRUMENTS
AECC discloses fair value information for most on- and off-balance sheet
financial instruments for which it is practicable to estimate that value. The
fair value of the financial instruments presented may not be indicative of their
future fair values. The estimated fair value of certain financial instruments
such as Cash and cash equivalents, Receivables for Dividends and interest, and
Investment securities sold, Accounts Payable Due to Parent and other affiliates,
Payable for investment securities purchased and Other accounts payable and
accrued expenses are approximated to be the carrying amounts disclosed in the
Balance Sheets. Non-financial instruments, such as Deferred distribution fees,
are excluded from required disclosure. AECC's off-balance sheet intangible
assets, such as AECC's name and future earnings of the core business are also
excluded. AECC's management believes the value of these excluded assets is
significant. The fair value of AECC, therefore, cannot be estimated by
aggregating the amounts presented.
A summary of fair values of financial instruments as of Dec. 31, is as follows:
2000 1999
Carrying Fair Carrying Fair
value value value value
Financial assets:
Assets for which carrying values
approximate fair values $ 107,309 $ 107,309 $ 89,206 $ 89,206
Investment securities (note 3) 3,440,682 3,443,630 3,085,395 3,091,730
First mortgage loans on real estate (note 4) 358,575 356,283 378,047 359,018
Derivative financial instruments (note 9) 53,015 33,108 123,845 112,176
Financial liabilities:
Liabilities for which carrying values
approximate fair values 4,516 4,516 33,944 33,944
Certificate reserves (note 5) 3,806,471 3,805,100 3,508,196 3,510,931
Derivative financial instruments (note 9) 27,822 15,996 47,911 65,625
AMERICAN EXPRESS CERTIFICATE COMPANY
(formerly IDS Certificate Company)
Investments in Securities of Unaffiliated Issuers Schedule I
($ in thousands)
Bal Held at
12/31/00
Principal Amt
of Bonds & Notes Cost Value at
or (Notes 12/31/00
Issuer Name and Issue Title # of Shares a & c) (Note a)
BONDS AND NOTES
United States Government-
Direct Obligations
U S TREASURY 5.625% 2006 200 199 205 (f)
US TREASURY NOTE 5.875% 2004 165 161 169
------------------ ---------------- ----------------
Total U.S. Government - Direct Obligations 365 360 374
------------------ ---------------- ----------------
Other Bonds and Notes
United States Government Agencies
GNMA ARM #8157 7.375% 2023 2,968 3,013 2,994 (f)
GNMA ARM #8206 7.375% 2017 755 755 761 (f)
GNMA ARM #8240 7.750% 2017 480 474 487 (f)
GNMA ARM #8251 7.750% 2017 42 42 43 (f)
GNMA ARM #8274 7.125% 2017 1,449 1,448 1,460 (f)
GNMA ARM #8283 7.125% 2017 199 199 201 (f)
GNMA ARM #8293 7.125% 2017 340 340 342 (f)
GNMA ARM #8353 7.375% 2018 608 605 614 (f)
GNMA ARM #8341 7.375% 2018 100 100 101 (f)
GNMA ARM #8365 7.375% 2018 1,019 1,019 1,029 (f)
GNMA ARM #8377 7.750% 2018 452 452 459 (f)
GNMA ARM #8428 7.125% 2018 201 202 203 (f)
GNMA ARM #8440 7.125% 2018 568 568 572 (f)
GNMA ARM #8638 7.375% 2025 4,010 4,043 4,048 (f)
FHLMC 15 #G10350 GLD 6.500% 2010 11,346 11,325 11,410 (f)
FHLMC 15YR G10364 7.000% 2010 7,926 7,888 8,035 (f)
FHLM 15 6.5 #G10369 6.500% 2010 19,568 19,365 19,702 (f)
FHLMC 15YR GOLD 6.500% 2010 9,630 9,590 9,684 (f)
FH15YR #G10439 GOLD 6.500% 2011 2,414 2,362 2,428 (f)
FHLMC 15YR G10627 6.500% 2011 15,616 15,408 15,679 (f)
FHLMC 15YR G10665 GD 7.000% 2012 37,709 37,622 38,185 (f)
FHLMC 15YR #G10949 6.500% 2014 13,224 13,055 13,220 (f)
FHLMC 15YR #G11000 7.000% 2015 22,889 22,642 23,185 (f)
FHLMC 15YR #G11004 7.000% 2015 7,147 7,110 7,221 (f)
FHLMC 15YR #G11009 7.000% 2015 17,677 17,586 17,859 (f)
FHLMC 15YR #G11060 6.500% 2015 29,459 28,847 29,450 (f)
FHLMC 15YR #G11067 6.500% 2014 35,365 35,188 35,354 (f)
FHLMC ARM #845154 8.319% 2022 1,335 1,375 1,378 (f)
FHLMC ARM #845523 8.270% 2023 1,441 1,483 1,487 (f)
FHLMC ARM #845654 8.443% 2024 4,164 4,221 4,306 (f)
FHLMC ARM #845730 8.437% 2024 7,038 7,264 7,232 (f)
FHLMC ARM #845733 8.259% 2024 6,808 6,921 7,016 (f)
FHLMC ARM #846072 8.082% 2022 2,194 2,245 2,233 (f)
FHLMC ARM#846107LIB 9.105% 2025 1,968 2,011 2,014 (f)
FHLMC 15YR #E76761 6.500% 2014 15,787 15,531 15,782 (f)
FHLMC 15YR #E77557 6.500% 2014 1,973 1,930 1,972 (f)
FHLMC 15YR #E80594 6.500% 2014 7,573 7,414 7,573 (f)
FHLMC 15 YR #E81066 6.500% 2014 14,040 13,748 14,040 (f)
FHLMC 15YR #E81459 6.500% 2014 6,735 6,593 6,735 (f)
FHLMC #846752 HYBD 6.974% 2030 23,331 23,005 23,690 (f)
FHLMC 5/1 HYBRID ARM 7.104% 2030 25,221 25,035 25,182 (f)
FHLMC ARM #350190 8.375% 2022 1,447 1,490 1,493 (f)
FHLMC GOLD E00151 7.500% 2017 2,572 2,642 2,634 (f)
FHLMC 15YR #E00383 7.000% 2010 7,772 7,760 7,876 (f)
FHLMC15YR E00388GOLD 7.000% 2010 5,048 4,981 5,135 (f)
FH GD 15YR #E00426 6.500% 2011 4,733 4,693 4,754 (f)
FHLMC GOLD #E00476 6.500% 2012 10,326 10,107 10,332 (f)
FHLMC GOLD E00484 6.500% 2012 4,426 4,333 4,432 (f)
FHLMC E00659 GOLD 6.000% 2014 25,648 24,592 25,356 (f)
FHLMC 15YR #E00732 6.500% 2014 27,576 26,981 27,567 (f)
FHLMC ARM 3/1#787102 7.125% 2030 15,046 14,958 15,148 (f)
FHLMC 30YR #786921 6.757% 2029 19,182 18,999 19,329 (f)
FNMA 3/1 HYBRID ARM 6.984% 2030 24,609 24,440 24,917 (f)
FHLMC T-009 A2 HEL 6.430% 2013 2,722 2,722 2,712 (f)
FHLMC 2019 CLASS C 6.500% 2019 11,653 11,384 11,671 (f)
FHLMC 2050 AB CMO 6.250% 2023 14,051 13,768 14,003 (f)
FHLMC 2149 CLASS DK 6.000% 2026 16,814 16,432 16,539 (f)
FHLMC 2185 CL A CMO 6.000% 2024 17,833 17,347 17,577 (f)
FHLMC 2184 CL TA CMO 6.500% 2026 8,348 8,224 8,367 (f)
FHLMC CMO 213 AB 7.000% 2005 20,000 19,935 20,150 (f)
FHLMC 15YR #380025 9.500% 2003 154 153 156
FHLMC 15 YR #200035 9.000% 2001 15 15 15 (f)
FHLMC 15 YR #200048 9.000% 2001 50 50 50
FHLMC 15 YR #200064 8.000% 2002 44 44 44 (f)
FHLMC 15 YR #212119 9.500% 2001 18 18 18 (f)
FHLMC 15 YR #218648 9.500% 2002 3 3 3 (f)
FHLMC 15 YR #219679 9.500% 2003 66 66 67 (f)
FHLMC 15 YR #219757 11.000% 2003 19 20 19
FHLMC 15 YR #502175 10.500% 2004 5 5 5 (f)
FHLMC 15YR 11.000% 2003 11 11 11 (f)
FHLMC ARM #605041 8.477% 2019 149 149 153 (f)
FHLMC ARM #605048 7.993% 2018 572 572 581 (f)
FHLMC ARM #605050 8.243% 2018 234 234 241 (f)
FHLMC ARM #630048 7.375% 2018 11 11 11 (f)
FHLMC ARM #630074 7.625% 2018 288 288 288 (f)
FHLMC ARM 840031 8.114% 2019 152 152 155 (f)
FHLMC ARM #840035 8.152% 2019 265 265 268 (f)
FHLMC ARM #840036 8.331% 2019 460 460 471 (f)
FHLMC ARM #840072 7.993% 2019 924 924 938 (f)
FHLMC ARM #405360 8.135% 2019 463 463 474 (f)
FHLMC ARM #405014 8.061% 2019 391 391 399 (f)
FHLMC ARM #405092 7.795% 2019 530 531 540 (f)
FHLMC ARM #405185 7.628% 2018 698 698 709 (f)
FHLMC ARM #405243 8.168% 2019 377 377 385 (f)
FHLMC ARM #405437 8.296% 2019 208 208 213 (f)
FHLMC ARM #405455 8.126% 2019 512 512 522 (f)
FHLMC ARM #405615 7.985% 2019 505 505 513 (f)
FHLMC ARM #405675 8.375% 2020 244 244 251 (f)
FHLMC ARM #605432 8.216% 2017 385 385 394 (f)
FHLMC ARM #605433 7.926% 2017 878 878 893 (f)
FHLMC ARM #605454 7.935% 2017 2,011 2,011 2,034 (f)
FHLMC ARM #606024 7.662% 2019 738 738 742 (f)
FHLMC ARM #606025 7.662% 2019 2,861 2,861 2,866 (f)
FHLMC ARM #635054 8.283% 2020 89 89 89 (f)
FHLMC ARM#785363 3X1 8.039% 2025 1,659 1,681 1,719 (f)
FHLMC ARM#785619 3X1 8.750% 2026 1,046 1,051 1,069 (f)
FHLMC ARM#785634 3X1 8.600% 2026 2,183 2,190 2,233 (f)
FHLMC ARM#865008 3X3 7.931% 2018 2,966 2,966 3,033 (f)
FHLMC LOANS #885005 9.500% 2002 238 237 242 (f)
FHLMC LOANS #885008 10.000% 2003 471 472 480 (f)
FHLMC 15 YR #885009 9.500% 2003 535 534 545
FHLMC ARM #606903 7.365% 2022 211 211 210 (f)
FNMA CMO 2000-32 AL 7.000% 2025 24,282 24,094 24,531 (f)
FNMA 96-10 C CMO SEQ 6.500% 2023 4,616 4,467 4,588 (f)
FNMA 97-2C CMO 7.000% 2020 15,981 15,986 16,033 (f)
FNMA SER 97-2E 7.000% 2024 10,000 9,890 10,180 (f)
FN 97 11 K SEQ CM0 7.125% 2023 133 134 133 (f)
FNMA 97-17 CMO 7.000% 2022 15,436 15,369 15,490 (f)
FNMA 97-54 CLASS B 6.500% 2022 14,458 14,262 14,492 (f)
FNMA 97-74 G SEQ CMO 6.500% 2024 5,077 5,058 5,062 (f)
FNMA 98-8 A SEQ CMO 6.500% 2024 5,456 5,458 5,458 (f)
FN 98 50 CLASS PA 6.000% 2012 11,773 11,782 11,724 (f)
FNMA 1999-51 LJ CMO 6.500% 2021 10,343 10,192 10,486 (f)
FNMA 15 6.0 #50973 6.000% 2009 20,388 20,027 20,289 (f)
FNMA 30 YR #51617 10.000% 2017 49 49 53 (f)
FNMA 30 YR #27880 9.000% 2016 25 26 26 (f)
FNMA 30 YR #36225 9.000% 2016 90 92 95 (f)
FNMA 30 YR #040877 9.000% 2017 36 37 38 (f)
FNMA 15 YR #66458 10.000% 2004 927 932 940
FNMA ARM #70117 7.815% 2017 268 268 272 (f)
FNMA ARM #70007 7.674% 2017 929 930 942 (f)
FNMA 15 YR 70694 MEG 9.500% 2005 563 566 592
FNMA #73227 MULT-FAM 6.700% 2005 1,846 1,858 1,851 (f)
FNMA ARM#105989 3X3 7.522% 2020 866 866 890 (f)
FNMA ARM#88879 3X3 7.860% 2019 1,298 1,298 1,334 (f)
FNMA ARM#89125 SEMI 8.001% 2019 3,218 3,283 3,236 (f)
FNMA ARM #97822 8.087% 2020 39 39 40 (f)
FNMA 15YR 190534 6.000% 2018 10,513 10,349 10,462
FNMA ARM#190726 SEMI 8.264% 2033 5,318 5,425 5,418 (f)
FNMA ARM #249907 8.242% 2024 3,877 3,934 4,021 (f)
FNMA 7.0 15YR 250670 7.000% 2011 3,058 3,080 3,098 (f)
FNMA 15YR #250671 7.500% 2011 8,966 8,988 9,156 (f)
FNMA 15 YR #A250857 7.000% 2012 9,302 9,282 9,413 (f)
FNMA 15YR #252259 5.500% 2014 26,299 25,853 25,566 (f)
FNMA 15YR 5.5 252344 5.500% 2014 23,441 22,896 22,767 (f)
FNMA 15YR #252381 5.500% 2014 21,973 21,429 21,352 (f)
FNMA 10YR #303115 6.500% 2004 4,768 4,634 4,769 (f)
FNMA ARM #303259 8.160% 2025 2,884 2,960 2,964 (f)
FNMA 15YR #303445 5.500% 2009 11,534 11,161 11,350 (f)
FNMA 15YR #303779 6.000% 2011 20,888 20,550 20,759 (f)
FNMA 15YR #313042 7.000% 2011 6,966 6,994 7,048 (f)
FNMA 15YR #313522 7.000% 2012 18,448 18,554 18,692 (f)
FNMA 15 YR #313561 8.000% 2012 8,623 8,787 8,868 (f)
FNMA 15YR 6% #323290 6.000% 2013 23,037 22,881 22,754 (f)
FNMA 15YR #323748 6.500% 2014 21,079 20,625 21,066 (f)
FNMA 15YR #367005 7.000% 2012 6,545 6,510 6,629 (f)
FNMA 15YR #509806 6.500% 2014 9,028 8,945 9,028 (f)
FNMA ARM 5/1 #535239 6.509% 2039 23,254 22,669 23,140 (f)
FNMA 15 YR #535213 7.000% 2015 49,536 49,092 50,032 (f)
FNMA 5/1 HYBRID ARM 6.895% 2030 23,844 23,453 23,734 (f)
FNMA 3/1 HYBRID ARM 7.000% 2030 14,279 14,103 14,419 (f)
------------------ ---------------- ----------------
Total United States Government Agencies 1,131,771 1,119,602 1,134,687
------------------ ---------------- ----------------
Municipal Bonds
California
CAL HSG 95-O TAX MUN 7.740% 2016 5,445 5,445 5,522 (b) (f)
CAL HSG FIN 1996-M 7.890% 2016 4,865 4,865 4,958 (b) (f)
Colorado
CO HLTH-POUDRE TAXAB 6.950% 2003 7,500 7,496 7,694 (b) (f)
New York
NEW YORK PWR AUTH 9.500% 2001 15 15 15 (b) (f)
WY VALLEY PA SWR 5.125% 2007 90 90 92 (b) (f)
------------------ ---------------- ----------------
Total Municipal Bonds 17,915 17,911 18,281
------------------ ---------------- ----------------
Public Utility
AES CORP SNR SUB NTS 8.375% 2007 5,000 4,982 4,806 (d) (f)
ALABAMA POWER 7.850% 2003 7,000 6,986 7,205 (f)
ALLIED WASTE 7.375% 2004 2,800 2,737 2,688 (f)
ASHLAND OIL MTN 7.830% 2005 10,000 10,000 10,298 (f)
AVON ENERGY 6.730% 2002 4,750 4,750 4,714 (d) (f)
BAROID CORP 8.000% 2003 5,000 4,994 5,135
BARRETT RESOURCES 7.550% 2007 3,000 3,003 2,987 (f)
CSW INVESTMENTS 144A 6.950% 2001 10,000 9,998 9,989 (d) (f)
SPPC 99-1A ABS 6.400% 2011 6,600 6,597 6,540 (f)
CALPINE CORP 7.750% 2009 3,500 3,498 3,274 (f)
CENTURYTEL INC 7.750% 2012 5,900 5,897 5,942 (f)
CINERGY CORP 6.125% 2004 4,000 3,996 3,833 (f)
CONOCO INC GLOBAL 5.900% 2004 7,500 7,493 7,450 (f)
CROSS TIMBERS OIL CO 8.750% 2009 3,000 3,000 3,045 (f)
CYTEC INDUSTRIES INC 6.500% 2003 10,500 10,495 10,229 (f)
DOMINION RESOURCES 7.600% 2003 16,000 15,998 16,373 (f)
DYNEGY CORP 6.875% 2002 3,000 2,998 3,014 (f)
ENRON CORP 6.625% 2003 5,000 5,017 5,052 (f)
ENRON CORP 6.450% 2001 10,000 10,000 9,988 (f)
GLOBAL CROSSING HLDG 9.500% 2009 1,500 1,462 1,418 (f)
INTERMEDIA COMM 9.500% 2009 2,000 1,992 1,400 (f)
KN ENERGY INC 6.450% 2003 8,000 7,993 7,979 (f)
LIMESTONE ELCTN 144A 8.625% 2003 11,000 11,083 11,314 (d) (f)
LYONDELL CHEM CO 9.625% 2007 1,500 1,511 1,455 (f)
MCN INV`T CORP MTN 6.890% 2002 9,000 9,008 9,022 (f)
MIDAMERICAN ENERGY 7.375% 2002 5,000 4,991 5,071 (f)
NRG ENERGY P/C 144A 8.700% 2005 8,000 7,991 8,128 (d) (f)
NEW PARK RESOURCES 8.625% 2007 2,500 2,521 2,319 (f)
NEXTEL COMMUNICATION 9.375% 2009 1,500 1,473 1,399 (f)
NIAGARA MHWK PWR 7.375% 2003 3,000 3,058 3,073 (f)
NI SOURCE 7.500% 2003 5,000 4,992 5,111 (f)
NORCEN ENERGY RES 6.800% 2002 10,000 9,994 9,953 (f)
PP&L CAPITAL FDG MTN 7.750% 2005 3,000 2,997 3,050 (f)
PUBLIC SERV E&G CAP 6.800% 2002 10,000 10,011 10,090 (d) (f)
PUB SERVICE ELEC GAS 6.740% 2001 12,000 12,000 12,055 (d) (f)
PRAXAIR INC 6.750% 2003 5,000 4,899 4,986 (f)
QWEST COMMUNICATION 7.250% 2008 3,000 3,000 2,977 (f)
REPUBLIC SERVICES 6.625% 2004 5,000 4,981 4,881 (f)
RIO ALTO EXPLORATION 7.690% 2005 9,000 9,000 9,000 (d) (f)
ROGERS CANTEL INC 8.800% 2007 1,000 1,000 1,000 (f)
SANTA FE SNYDER 8.050% 2004 2,000 1,982 2,026 (f)
SMITH INT`L INC 7.240% 2001 10,000 10,000 9,996 (d) (f)
SOUTHERN CAL EDISON 7.200% 2003 4,000 3,994 3,410 (f)
SPRINT CORP 8.125% 2002 5,000 5,062 5,079 (f)
TELEFONICA EUROPE 7.350% 2005 8,000 7,997 8,082 (f)
USX CORP 7.200% 2004 13,000 13,212 13,137 (f)
USA WASTE SERVICES 6.500% 2002 10,000 9,998 9,806 (f)
US WEST CAP FDG 6.875% 2001 10,000 9,996 10,016 (f)
VODAFONE AIRTOUCH 7.625% 2005 5,000 4,993 5,166 (f)
WILLIAMS COMM 10.875% 2009 500 497 373 (f)
WILLIAMS CO INC 6.500% 2002 12,000 11,996 12,018 (f)
------------------ ---------------- ----------------
Total Public Utility 318,050 318,123 317,352
------------------ ---------------- ----------------
Finance
AG CAP SR NT FLT A 7.580% 2004 20,000 19,988 19,500 (d) (f)
AMB REIT 7.200% 2005 5,000 4,993 5,026 (f)
AT&T CAPITAL CORP 6.900% 2002 15,000 14,979 15,112 (f)
AERCO LDT S-1A CL C1 7.970% 2023 13,324 13,197 12,824 (f)
O`N`E` LOAN TRUST 97 7.480% 2007 25,000 26,972 26,972 (d) (f)
ATHENA CBO FLT AAA 7.710% 2010 10,000 9,970 10,025 (d) (f)
BAMS 1998-2 1A5 6.750% 2028 16,414 16,211 16,512 (f)
BANK OF AMERICA GBL 6.625% 2004 5,000 4,993 5,031 (f)
BANPONCE FIN CORP 6.580% 2003 5,000 4,992 5,026 (f)
BISTRO TRST 1997-100 6.350% 2002 7,000 6,993 7,051 (d) (f)
BISTRO TRT 98-1000 6.580% 2001 14,000 14,000 13,975 (d) (f)
CWHL 2000-7R A1 CMO 6.500% 2030 19,532 19,146 19,529 (f)
CAITHNESS COSO FUND 6.800% 2001 492 492 485 (f)
CAPITAL ONE BANK 6.375% 2003 5,500 5,492 5,371 (f)
CAPITAL ONE BANK 7.610% 2003 12,000 12,000 12,001 (f)
CARAVELLE INV B FLTG 8.340% 2005 17,500 17,500 16,782 (f)
CARCO AUTO 97-1 6.689% 2004 4,924 4,924 4,930 (f)
CATERPILLER FINANCE 6.875% 2004 5,000 4,986 5,066 (f)
CCMSC 1997-2 CLSS A1 6.450% 2004 3,241 3,242 3,268 (f)
CHASE 1999-AS2A H1 6.500% 2029 8,522 8,542 8,507 (f)
CHASE 99-S13 A1 CMO 6.500% 2014 8,977 8,686 9,023 (f)
COMMERCIAL CREDIT 8.250% 2001 9,000 8,982 9,125 (f)
CONTI FINANCIAL CORP 8.375% 2003 4,913 1,719 712 (e) (f)
CONTI MTG HEL TRTA-6 6.690% 2016 10,000 9,999 10,044 (f)
CONTI 98-1 CLASS A5 6.430% 2016 10,000 9,999 10,007 (f)
DLJ CMC 99-CG3 A1-A 7.120% 2008 9,371 9,412 9,749 (f)
ML CLO SR98 DELANO-1 7.880% 2009 10,500 10,480 7,429 (f)
DIME BANCORP 9.000% 2002 5,000 5,000 5,020 (f)
DUKE REALTY 7.300% 2003 7,500 7,496 7,591 (f)
ECH FUNDING 98-1 A-2 8.000% 2010 19,000 19,000 17,041 (d) (f)
EQUICREDIT 97-3 A6 6.610% 2021 5,000 5,006 5,037 (f)
ELAN PHARMACEUTICAL 8.430% 2002 10,000 10,000 10,065 (d) (f)
FDIC 96-1C CLASS 1A 6.750% 2026 1,789 1,789 1,793 (f)
FMAC LLC 98-D CL A-1 6.111% 2019 3,345 3,354 3,329 (d) (f)
FBMS 93-2 CL B1 CMO 7.500% 2033 5,536 5,662 5,558 (f)
FBMS 93-M1 CL 1A CMO 6.750% 2006 10,173 10,052 10,300 (f)
FIRST DOMINION CBO 1 8.134% 2013 19,000 19,000 17,964 (d) (f)
FIRST UNION CORP 6.625% 2004 3,000 2,992 2,981 (f)
FULB 97-C1 A-1 MBS 7.150% 2004 5,646 5,699 5,760 (f)
FULB 97-C2 CLASS A1 6.479% 2004 5,392 5,406 5,417 (f)
FIRSTPLUS 98-A-A NIM 2.000% 2023 5,309 5,309 5,219 (f)
GATX CAP CORP MTN 6.360% 2002 5,000 4,972 4,851 (f)
GECMS 1998-24 A1 6.250% 2029 17,443 16,873 17,103 (f)
GECMS 99-15 A1 6.750% 2029 19,167 18,706 19,168 (f)
GMAC 96-C1 COMM MBS 6.790% 2003 2,311 2,315 2,326 (f)
GMAC 97-C2 A CMBS 6.451% 2004 4,025 4,035 4,053 (f)
GS-96PROTECT LIFE A1 7.020% 2027 4,082 4,145 4,109 (f)
GREENTREE EQ 96-B 7.700% 2018 7,424 7,515 7,247 (f)
GREENPOINT BANK 6.700% 2002 9,250 9,265 9,198 (f)
HELLER FINANCIAL 6.440% 2002 5,000 4,992 4,969 (f)
HELLER FIN 7.875% 2003 5,000 4,994 5,118 (f)
HELLER FINANCIAL 7.500% 2002 5,000 4,997 5,051 (f)
HOMESIDE LENDING 6.875% 2002 10,000 9,999 10,083 (f)
HOUSEHOLD FIN MTN 7.100% 2002 10,000 9,998 10,116 (f)
MSC 2000-HG C 7.532% 2005 2,500 2,500 2,606 (d) (f)
INDOSUEZ CAP B-2 CLO 8.104% 2010 16,500 16,500 15,390 (d) (f)
IROQUOIS TRUST 97-1A 7.000% 2006 1,905 1,905 1,903 (d) (f)
IROQUOIS TRUST 97-2A 6.752% 2007 6,798 6,794 6,800 (d) (f)
LBCMT 98-C1 A-1 CMBS 6.330% 2004 3,000 3,008 3,012 (f)
LBCMT 98-C4 A1A CMBS 5.870% 2006 4,410 4,425 4,373 (f)
LONG ISL SAV BK 7.000% 2002 5,000 4,996 4,981 (f)
MBNA AMER BANK NA 7.540% 2001 10,000 10,000 10,015
MBNA AMERICA 7.750% 2005 6,000 5,979 6,132 (f)
MGIC INVT CORP 7.500% 2005 7,000 6,974 7,164 (f)
ML CBO14 98-E&P-1 FL 8.232% 2010 11,000 11,000 1,650 (d) (f)
MERCANTLE SAFE BK CD 7.400% 2002 7,500 7,500 7,575 (f)
ML CLO 98 PILG-3 8.160% 2010 7,500 7,455 3,000 (f)
ML CBO 98 AIG-2 B-1 8.132% 2010 6,500 6,478 975 (f)
MONEYSTORE 97-A A6 7.210% 2021 2,166 2,166 2,167 (f)
JPMS 96-C2 CL A 6.470% 2027 2,277 2,286 2,292 (f)
JPM 98-C6 A1 CMBS 6.373% 2030 2,549 2,556 2,561 (f)
JPMC 99-C7 A1 CMBS 6.180% 2035 9,166 9,203 9,161 (f)
JPMC 2000-C9 A1 7.590% 2032 4,830 4,850 5,078 (f)
MS CAP 1996-WFI MBS 7.233% 2006 9,863 9,931 10,181 (f)
MS CAP 1 1997-XL A-1 6.590% 2030 13,540 13,578 13,728 (f)
MS CAP 98-WF1 CMBS 6.250% 2007 2,040 2,046 2,054 (f)
MCF 96-MC2 CLS A1 6.758% 2004 6,511 6,533 6,588 (f)
NPF12 2000-1 A ABS 7.036% 2003 10,000 10,000 9,975 (d) (f)
NSCOR 1998-7 A2 6.750% 2028 10,679 10,542 10,667 (f)
NSCOR 99-23 A1 7.000% 2029 10,291 10,058 10,321 (f)
ORIX CR ALL 144A MTN 6.640% 2002 16,000 16,000 15,904 (d) (f)
OSPREY TRUST 144A 8.310% 2003 5,000 5,000 5,118 (d) (f)
PAMCOIII CLO 98-1 B2 8.109% 2010 19,000 19,000 14,187 (d) (f)
BANK POPULAR N.A. 6.625% 2002 12,000 11,996 12,049 (f)
PROVIDIAN 97-4-A CRD 6.250% 2007 10,500 10,493 10,589 (f)
PROVIDIAN NATL BANK 6.700% 2003 13,000 12,995 12,706 (f)
PHMS 1993-39 A8 SUPP 6.500% 2008 5,923 5,810 5,894 (f)
RFMSI 1998-S23 CL A1 6.000% 2028 9,177 9,208 9,111 (f)
RFMSI 98-S13 CL A23 6.750% 2028 3,880 3,841 3,883 (f)
RFMS2 2000-HI4 AI3 7.490% 2013 10,000 9,999 10,152 (f)
RASC 99-KS1 AI4 ABS 6.390% 2027 5,000 4,985 4,929 (f)
SASCO 98-C3 CLASS B 7.368% 2001 1,083 1,083 1,084 (d) (f)
SL CMBS 97-C1 CLS A 6.875% 2004 9,356 9,404 9,480 (d) (f)
SBM7 2000-C1 A1 7.460% 2008 9,724 9,679 10,213 (f)
SBMS VII 91-1 B1 9.700% 2006 55 55 55 (f)
SANWA BUS CREDIT MTN 7.250% 2001 10,000 9,998 10,073 (d) (f)
SAXON 98-1 AF3 HEL 6.450% 2024 802 802 800 (f)
SAXON 95-1 BA2 ARM 8.047% 2025 789 800 791 (f)
STRATG HOTEL99-C1 C 8.230% 2004 5,000 5,000 5,015 (f)
SIMSBURY IV FLTR CLO 9.210% 2011 4,500 4,500 4,500 (f)
SOMERS CBO FLT 7.000% 2012 11,000 10,935 11,055 (d) (f)
SOVEREIGN BANCORP 10.250% 2004 1,000 1,000 985 (f)
SOVEREIGN BANK 144A 10.200% 2005 4,750 4,750 4,941 (d) (f)
GMPT 99-C1 D CMBS 7.760% 2004 3,000 3,000 3,001 (d) (f)
TCW GEM II 144A FLT 8.135% 2012 25,000 23,909 20,672 (d) (f)
TRANS OCEAN CRP 144A 6.670% 2007 8,216 8,186 8,415 (d) (f)
UCFC 97-B CL A-4 ABS 6.940% 2023 4,754 4,752 4,788 (f)
UNIFRAX INVESTMENT 10.500% 2003 5,000 5,016 4,500 (f)
US BANCORP MTN J 7.500% 2003 10,000 10,000 10,207 (f)
VAN KAMPEN CLOII LMT 7.420% 2008 5,000 5,000 3,631 (d) (f)
VANDERBILT 98-A A2 6.140% 2006 1,133 1,133 1,131 (f)
WACHOVIA CORP 7.450% 2005 5,000 5,000 5,177 (f)
WASHINGTON MUTUAL 7.500% 2006 1,400 1,392 1,432 (f)
WAYLAND FUND 7.790% 2004 5,000 5,000 5,153 (d) (f)
ICI INVESTMENTS EMTN 6.750% 2002 10,000 10,032 10,003 (f)
------------------ ---------------- ----------------
Total Finance 915,169 910,476 877,522
------------------ ---------------- ----------------
Industrial
AAF MCQUAY 8.875% 2003 10,000 10,063 8,600 (f)
AGCO CORP 8.500% 2006 5,000 4,976 4,475 (f)
AK STEEL CORP 9.125% 2006 3,000 3,053 2,790 (f)
ABITIBI CONSOLIDATED 8.300% 2005 3,250 3,249 3,307 (f)
ADELPHIA COMM CORP 7.875% 2009 1,600 1,600 1,328 (f)
ADVANCED LIGHTING 8.000% 2008 1,000 1,006 684 (d) (f)
AMER AIRLINES LESSEE 6.400% 2008 2,209 2,209 2,209 (d) (f)
AMER AIRLINES LESSEE 6.400% 2008 1,888 1,888 1,888 (d) (f)
AMER AIRLINES LESSEE 6.400% 2008 2,127 2,127 2,127 (d) (f)
AMER AIRLINES LESSEE 6.400% 2008 2,317 2,317 2,317 (d) (f)
AMER AIRLINES LESSEE 6.400% 2008 565 565 565 (d) (f)
AMER AIRLINES LESSEE 6.400% 2008 564 564 564 (d) (f)
AMERICAN AIR ETC 8.970% 2008 9,993 10,276 10,575 (f)
AMER AXLE & MFG INC 9.750% 2009 2,000 1,986 1,680 (f)
AMERICAN STANDARD 7.375% 2008 2,000 1,908 1,900 (f)
AMERICAN STANDARD 7.375% 2005 1,000 985 962 (f)
AMERISERVE FOOD SER 10.125% 2007 3,000 0 30 (e) (f)
ANTENNA TV SA 9.000% 2007 5,000 4,926 4,450 (f)
AON CORP 6.900% 2004 3,000 2,997 2,998 (f)
ARGO-TECH CORP 8.625% 2007 2,000 2,000 1,580 (f)
AVIATION SALES 8.125% 2008 2,000 1,996 1,060 (e) (f)
BALL CORPORATION 7.750% 2006 2,000 1,999 1,925 (f)
BECKMAN INSTRUMENTS 7.100% 2003 5,000 5,000 4,936 (f)
A.H. BELO 6.875% 2002 17,885 18,052 17,712 (f)
BLACK & DECKER 7.500% 2003 10,000 10,169 10,104 (f)
BURLINGTON NORTHERN 6.375% 2005 5,000 4,999 4,962
CSC HOLDINGS INC 7.875% 2007 3,500 3,342 3,483 (f)
CSX CORP 7.050% 2002 10,000 9,998 10,070 (f)
CSX CORP MTN 7.260% 2002 5,000 4,999 5,000 (f)
REYNOLDS METALS CAN 6.625% 2002 7,800 7,822 7,817 (f)
CANANDAIGUA BRANDS 8.500% 2009 1,000 1,000 980 (f)
CANANDAIGUA WINE 8.625% 2006 1,000 988 1,020 (f)
CAPSTAR HOTEL 8.750% 2007 3,000 2,997 2,775 (f)
CHARTER COMM HLDGS 8.250% 2007 2,000 1,996 1,830 (f)
CHIQUITA BRANDS INTL 10.250% 2006 3,000 2,988 1,050 (f)
CINEMARK USA INC 8.500% 2008 2,000 1,997 1,300 (f)
CLEAR CHANNEL COMM 7.210% 2002 5,000 5,000 5,011 (f)
CLEAR CHANNEL 7.250% 2003 5,000 4,998 5,052 (f)
COLTEC INDUSTRIES 7.500% 2008 2,000 1,998 1,987 (f)
COMDISCO CORP 5.950% 2002 10,000 10,000 7,700 (f)
COMPAQ COMPUTER 7.450% 2002 5,000 4,997 5,010 (f)
CONAGRA 7.500% 2005 4,000 3,992 4,170 (f)
CONTAINER CORP AMER 9.750% 2003 4,000 3,990 3,995 (f)
COX ENTERPRISES 144A 6.625% 2002 25,000 24,970 25,080 (d) (f)
CROWN CORK & SEAL 6.750% 2003 14,950 14,981 8,222 (f)
DR HORTON 8.000% 2009 2,000 1,991 1,800 (f)
DAIMLERCHRYSLER HLDG 7.125% 2003 10,000 9,992 10,022 (f)
TARGET CORP 6.400% 2003 10,000 9,989 10,005 (f)
TARGET CORP 6.800% 2001 5,000 5,000 5,009 (f)
DIAGEO CAPITAL PLC 6.625% 2004 6,000 5,996 6,092 (f)
DOMAN INDUSTRIES LTD 9.250% 2007 3,000 3,010 1,170 (f)
DOMINO`S INC 10.375% 2009 2,000 2,012 1,680 (f)
DURA OPERATING CO 9.000% 2009 3,000 3,038 2,490 (f)
BERGEN BRUNSWIG(DUR) 7.000% 2006 20,000 20,000 16,120 (d) (f)
ERAC USA 144A 6.950% 2004 9,000 9,073 8,924 (d) (f)
EARTHGRAINS CO 8.375% 2003 5,000 4,990 4,963 (f)
EARTHGRAINS CO 8.500% 2005 4,000 3,990 3,965 (f)
EMMIS COMM CORP 8.125% 2009 2,000 2,016 1,840 (f)
ENERGIZER HOLDINGS 7.860% 2005 7,000 7,000 7,076 (d) (f)
EXIDE CORP 10.000% 2005 3,000 3,014 2,160 (f)
EXTENDICARE HLTH SER 9.350% 2007 1,000 1,000 520 (f)
EYE CARE CENTERS 10.701% 2008 2,000 2,000 700 (f)
FEDDERS N. AMERICA 9.375% 2007 3,000 3,012 2,580 (f)
FEDERAL-MOGUL 8.800% 2007 4,000 3,991 600 (f)
FORD MTR CRED-GLOBAL 6.700% 2004 5,000 4,994 4,997 (f)
GE CAP CORP GLOBAL 6.700% 2002 7,500 7,495 7,609 (f)
GENESIS HEALTHC 9.25 0.000% 2006 5,000 2,750 500 (e) (f)
GIANT INDUSTRIES 9.000% 2007 5,000 5,000 4,537 (f)
GRAHAM PACKAGING FLT 10.539% 2008 1,500 1,500 900 (f)
HASBRO INC 7.950% 2003 15,000 14,974 12,975 (f)
HAYES WHEELS INT'L 9.125% 2007 3,000 3,005 1,980 (f)
HAYES WHEELS INT`L 9.125% 2007 1,000 1,000 660 (f)
HERITAGE MEDIA 8.750% 2006 4,500 4,566 4,354 (f)
ISPMEX 144A LIQUID 10.125% 2003 2,684 2,684 2,577 (d) (f)
INSIGHT MIDWEST 144A 10.500% 2010 1,500 1,494 1,545 (d) (f)
INTEGON CORP 9.500% 2001 2,000 1,996 2,038
INT`L GAME TECH 7.875% 2004 2,000 1,986 1,980 (f)
INTL PAPER CO 144A 8.000% 2003 10,000 9,980 10,224 (d) (f)
INT`L SHIPHOLDING 7.750% 2007 2,000 1,992 1,740 (f)
INTERPOOL INC 6.625% 2003 12,500 12,492 10,625 (f)
JONES APPAREL 7.500% 2004 3,000 2,995 2,879 (f)
JONES APPAREL 7.875% 2006 2,000 1,994 1,905 (f)
K-III COMM PUT/96 8.500% 2006 5,000 4,987 4,800 (f)
KAUFMAN & BROAD HOME 7.750% 2004 3,000 2,986 2,790 (f)
KROGER CO 8.150% 2006 4,000 4,003 4,227 (f)
LTV CORPORATION 8.200% 2007 4,000 3,981 80 (d) (e) (f)
LAMAR MEDIA CORP 8.625% 2007 5,000 5,005 5,000 (f)
LGETT&PLATT MTN SERD 7.185% 2002 10,000 9,982 10,155 (d) (f)
MJD COMMUNICATIONS 10.909% 2008 3,000 3,000 2,830 (f)
MARK IV 7.500% 2007 3,000 2,988 2,362 (f)
MEDIAONE GROUP INC 6.850% 2002 15,500 15,498 15,558 (f)
FRED MEYERS INC 7.150% 2003 5,000 4,995 5,050 (f)
MULTICARE CO 9.000% 2007 4,000 1,200 180 (e) (f)
MURRIN-MURRIN 144A 9.750% 2005 1,440 1,440 1,152 (d) (f)
MURRIN-MURRIN 144A 9.750% 2005 2,160 2,160 1,728 (d) (f)
NCI BUILDING SYSTEMS 9.250% 2009 2,000 2,025 1,880 (f)
NEWPORT NEWS CORP 8.625% 2006 1,000 995 1,005 (f)
NORFOLK SOUTHERN 6.950% 2002 15,000 15,069 15,115 (f)
NORTEK INC 9.125% 2007 2,500 2,517 2,250 (f)
OFFSHORE LOGISTICS 7.875% 2008 2,000 2,004 1,850 (f)
P&L COAL HLDGS 8.875% 2008 1,000 1,002 1,008 (f)
PACKAGING CORP 9.625% 2009 2,000 2,015 2,065 (f)
PARACELSUS HEALTH 10.000% 2006 5,000 3,000 1,975 (e) (f)
PARK-OHIO INDUSTRIES 9.250% 2007 1,000 1,003 750 (f)
PARK PLACE ENTERTAIN 7.875% 2005 1,000 958 980 (f)
PARK PLACE ENTERTAIN 8.875% 2008 500 500 505 (d) (f)
PENNEY J.C. & CO 7.250% 2002 10,000 9,999 8,500 (f)
PILLOWTEX CORP 9.000% 2007 1,750 1,575 53 (e) (f)
PINNACLE ONE PARTNRS 8.830% 2004 6,000 6,000 6,201 (d) (f)
PRINTPACK INC 9.875% 2004 2,500 2,500 2,481 (f)
PULTE CORP 9.500% 2003 13,000 13,000 13,151 (f)
QUAKER OATS 6.940% 2003 1,500 1,502 1,522 (f)
RITE AID CORP 144A 10.500% 2002 5,000 5,000 3,250 (d) (f)
ROLLINS TRUCK 6.875% 2001 5,000 5,000 4,985 (f)
RYERSON TULL INC 8.500% 2001 5,000 5,000 4,700 (f)
S C INTERNATIONAL 9.250% 2007 5,000 5,019 4,900 (f)
SAFECO CORPORATION 7.875% 2003 7,000 6,984 7,107 (f)
SAKS INC 7.000% 2004 5,000 4,982 3,625 (f)
SCOTTS COMPANY 144A 8.625% 2009 2,000 1,934 1,900 (d) (f)
SEA CONTAINERS LTD 7.875% 2008 2,000 2,000 1,310 (f)
SEQUA CORP 9.000% 2009 2,500 2,476 2,481 (f)
SMITHFIELD FOODS INC 7.625% 2008 2,000 1,995 1,850 (f)
STENA AB 10.500% 2005 3,000 3,000 2,655
SUN MICROSYSTEMS INC 7.000% 2002 4,000 4,000 4,022 (f)
SUPERVALU INC 7.625% 2004 5,000 4,995 5,094 (f)
TTX COMPANY 144A 7.020% 2001 10,000 10,000 10,073 (d) (f)
TTX CO 144A 7.350% 2004 4,000 4,000 4,175 (d) (f)
TEEKAY SHIPPING CORP 8.320% 2008 3,000 3,021 2,876 (f)
TELEWEST PLC 9.625% 2006 2,000 2,000 1,720
TEMBEC INC 8.625% 2009 2,000 2,003 1,970 (f)
TENET HEALTHCARE CO 8.625% 2003 3,000 2,996 3,075 (f)
TEXTRON INC 6.375% 2004 3,000 2,988 2,948 (f)
TITAN WHEEL INT`L IN 8.750% 2007 4,100 4,085 2,337 (f)
TRICO MARINE SERVICE 8.500% 2005 2,250 2,242 2,140 (f)
TYCO INT`L P/C 6.250% 2003 10,000 9,975 9,858 (f)
US INDUSTRIES 7.125% 2003 6,000 5,989 5,923 (f)
UNILEVER NV 6.750% 2003 9,500 9,469 9,673 (f)
UNION PACIFIC CORP 7.328% 2002 12,000 12,000 12,013 (f)
UNION TANK CAR 6.500% 2008 4,407 4,401 4,421 (f)
UNITED AIR 1991A-1 9.200% 2008 3,950 3,807 4,314
UAL EETC SER 00-2 7.032% 2010 5,000 5,000 5,059 (f)
UNITED STATIONERS 8.375% 2008 1,000 1,000 930 (f)
UNITED HEALTH GROUP 7.500% 2005 6,000 5,980 6,199 (f)
VIACOM INC 6.750% 2003 5,000 4,998 5,006
WCI STEEL INC 10.000% 2004 2,000 2,007 1,420 (f)
WESTINGHOUSE AIR 9.375% 2005 2,250 2,303 2,003 (f)
WESTPOINT STEVENS 7.875% 2005 4,000 4,077 2,920 (f)
AMER AIRLINES LESSE 6.400% 2008 1,122 1,122 1,122 (d) (f)
AMER AIRLINES LESSE 6.400% 2008 1,122 1,122 1,122 (d) (f)
AMER AIRLINES LESSE 6.400% 2008 1,122 1,122 1,122 (d) (f)
AMER AIRLINES LESSE 6.400% 2008 586 586 586 (d) (f)
AMER AIRLINES LESSE 6.400% 2008 587 587 587 (d) (f)
AMER AIRLINES LESSE 6.400% 2008 789 789 789 (d) (f)
AMER AIRLINES LESSE 6.400% 2008 788 788 788 (d) (f)
AMER AIRLINES LESSE 6.400% 2008 789 789 789 (d) (f)
WORLD COLOR PRESS 8.375% 2008 3,000 3,000 3,041 (f)
ASTRON CBO FLT BAA3 8.283% 2010 17,500 17,500 16,056 (d) (f)
------------------ ---------------- ----------------
Total Industrial 720,044 709,994 651,158
------------------ ---------------- ----------------
Total Other Bonds and Notes 3,102,949 3,076,106 2,999,000
------------------ ---------------- ----------------
TOTAL BONDS AND NOTES 3,103,314 3,076,466 2,999,374
------------------ ---------------- ----------------
PREFERRED STOCK
Public Utility
AMERITECH NZ A $100 7.040% 2001 40 4,026 4,065 (d) (f)
APPALACHIAN PWR $100 5.900% 2008 10 998 1,017 (f)
APPALACHIAN PWR $100 5.920% 2008 11 1,092 1,124
ATLANTIC CITY EL 100 7.800% 2006 90 8,992 9,169
AVISTA CORP PFD 6.95 6.950% 2007 58 5,762 5,761
BELL ATLANTIC NZ144A 7.080% 2001 25 2,564 2,659 (d) (f)
BELL ATL NZ$100 144A 5.800% 2004 100 10,000 10,297 (d)
BOSTON EDISON $100 8.000% 2001 90 9,000 9,301
CENTRAL ILL LT $100 5.850% 2008 65 6,504 6,463
CON EDISON $100 SR J 6.125% 2002 150 15,013 15,286
DUKE ENERGY $100 V 6.400% 2002 30 3,000 3,029
DUKE ENRGY $100 SR U 6.300% 2001 30 3,000 3,012
DUKE ENRGY 1992D $25 6.200% 2001 200 5,000 5,019
ENTERGY LA INC PFD 8.000% 2001 70 7,000 7,538
INDIANA MICH POWER 6.300% 2009 52 5,223 5,277
IND MICH POWER $100 6.250% 2009 20 2,003 2,014 (f)
INDIANA MICHIGAN PWR 5.900% 2009 33 3,145 3,195
JERSEY CENTRAL P&L 8.650% 2005 74 7,448 7,786
LOUISVILLE G&E PFD 5.875% 2008 12 1,198 1,255 (f)
MASS ELEC CO 6.625% 2008 210 20,927 21,210
MIDAMERICAN ENERGY 7.800% 2006 73 7,528 7,719
MIDAMERICAN ENER 5.25 % 2003 10 967 992 (f)
NO IND PUB SERV $100 6.500% 2002 115 11,665 11,719 (f)
NORTHWEST NAT GA 100 6.950% 2002 170 17,046 17,696
OHIO POWER CO $100 5.900% 2009 36 3,546 3,618
OHI PWR CO $100 6.020% 2008 10 992 1,013
OHIO PWR CO $100 6.350% 2008 5 503 516
OTTER TAIL PWR $100 6.300% 2007 180 18,000 18,703
PECO ENERGY 6.120% 2003 64 6,405 6,410
PACIFIC GAS & ELEC 6.300% 2009 120 2,966 2,569 (f)
PACIFIC GAS & ELEC 6.570% 2007 718 17,969 16,077
PACIFICORP $100 PAR 7.700% 2001 150 15,000 15,403
POTOMAC ELEC PWR $50 6.800% 2007 161 7,971 8,563
PUBLIC SER ELEC & GA 5.970% 2008 6 608 480 (f)
ROCHESTER G&E $100 6.600% 2009 100 10,073 10,431
SAN DIEGO G&E $25 1.763% 2008 60 1,564 1,588 (f)
SO CA EDISON $100 6.050% 2008 45 4,498 4,071 (f)
SO CA EDISON $100 6.450% 2002 170 17,054 15,813
SO INDIANA G&E 100 6.500% 2002 75 7,500 7,463 (d)
TXU ELECTRIC CO 6.375% 2008 54 5,417 5,523
TXU ELECTRIC CO 6.980% 2008 50 5,000 5,178
UBS PRIVATE SER H 5.040% 2002 15 15,000 14,775 (d) (f)
------------------ ---------------- ----------------
Total Public Utility 3,757 299,167 300,797
------------------ ---------------- ----------------
Finance
ABN AMRO NA FRAP 5.94% 15 15,000 12,675 (d) (f)
CHASE MANHAT FRAP 4.96% 150 7,500 7,401 (f)
CITIGROUP FRAP 5.86% 5.68% 150 7,782 7,761 (f)
COMERICA FRAP 6.84% 150 7,796 7,575 (f)
EURO AMER BANK FRAP 5.84% 10 10,000 10,209 (f)
FLEETBOSTON FIN 6.59 6.59% 130 6,662 6,569 (f)
MORGAN STANLEY GROUP 5.91% 100 5,000 4,965 (f)
NIAGARA MOHAWK $50 6.91% 100 5,000 5,016 (f)
PNC FINL SERV GROUP 6.05% 440 22,160 22,179 (f)
WELLS FRGO FRAP SERH 6.59% 432 22,108 21,870 (f)
------------------ ---------------- ----------------
Total Finance 1,677 109,008 106,220
------------------ ---------------- ----------------
Industrial
BHP OPERATIONS 144 6.760% 2006 50 5,000 5,157 (d) (f)
NORTHBROOK HLDG 1000 6.600% 2001 10 10,000 10,047 (d) (f)
WHIRLPOOL FIN $100 B 6.550% 2008 180 18,063 18,309 (d)
WHIRLPOOL FINL PFD 6.090% 2002 37 3,695 3,726 (d) (f)
------------------ ---------------- ----------------
Total Industrial 277 36,758 37,239
------------------ ---------------- ----------------
TOTAL PREFERRED STOCK 5,711 444,933 444,256
------------------ ---------------- ----------------
TOTAL Investments in Securities of Unaffiliated Issuers 3,521,399 3,443,630
================ ================
NOTES:
a) See Notes 1 and 3 to the financial statements regarding determination of
cost and fair values.
b) In the absence of market quotations, securities are valued by American
Express Certificate Company at fair value.
c) Aggregate cost of investment in securities of unaffiliated issuers for
federal income tax purposes was $3,536,676.
d) Securities acquired in private negotiation which may require registration
under federal securities law if they were to be publicly sold. Also see
Note 3b to financial statements.
e) Non-income producing securities.
f) Securities classified as available for sale and carried at fair value on
the balance sheet. Also see Notes 1 and 3A to financial statements.
AMERICAN EXPRESS CERTIFICATE COMPANY SCHEDULE II
(formerly IDS Certificate Company)
Investments in and Advances to Affiliates and Income Thereon
December 31, 2000, 1999 and 1998
($ in thousands)
Balance December 31, 2000
--------------------------------------
Interest
Dividends
Principal Carrying Credited
Amount or Cost Value to Income
Name of Issuer and Title of Issue No. of Shares (a) (b) (c)
---------------- -------- ---------- --------------
Wholly Owned Subsidiary (b):
Real Estate Investment Company:
Investors Syndicate Development Corporation:
Capital Stock............................. 100 $422 $422 $0
================
Other Controlled Companies: $0 0 0 0
================
Other Affiliates (as defined in Sec. 2(a)(3) of
the Investment Company Act of 1940)............. $0 0 0 0
================ -------- ---------- --------------
Total affiliates............................ $422 $422 $0
======== ========== ==============
Balance December 31, 1999
--------------------------------------
Interest
Dividends
Principal Carrying Credited
Amount or Cost Value to Income
Name of Issuer and Title of Issue No. of Shares (a) (b) (c)
---------------- -------- ---------- --------------
Wholly Owned Subsidiary (b):
Real Estate Investment Company:
Investors Syndicate Development Corporation:
Capital Stock............................. 100 $418 $422 $0
================
Other Controlled Companies: $0 0 0 0
================
Other Affiliates (as defined in Sec. 2(a)(3) of
the Investment Company Act of 1940)............. $0 0 0 0
================ -------- ---------- --------------
Total affiliates............................ $418 $422 $0
======== ========== ==============
Balance December 31, 1998
--------------------------------------
Interest
Dividends
Principal Carrying Credited
Amount or Cost Value to Income
Name of Issuer and Title of Issue No. of Shares (a) (b) (c)
---------------- -------- ---------- --------------
Wholly Owned Subsidiary (b):
Real Estate Investment Company:
Investors Syndicate Development Corporation:
Capital Stock............................. 100 $2,998 $418 $0
================
Other Controlled Companies: $0 0 0 0
================
Other Affiliates (as defined in Sec. 2(a)(3) of
the Investment Company Act of 1940)............. $0 0 0 0
================ -------- ---------- --------------
Total affiliates............................ $2,998 $418 $0
======== ========== ==============
AMERICAN EXPRESS CERTIFICATE COMPANY SCHEDULE II
(formerly IDS Certificate Company)
Investments in and Advances to Affiliates and Income Thereon
December 31, 2000, 1999 and 1998
($ in thousands)
NOTES:
(a) The aggregate cost for federal income tax purposes was $422 at December 31,
2000 and 1999, and $438 at December 31, 1998, subject to possible
adjustment in certain circumstances under consolidated income tax return
regulations.
(b) Investments in stocks of wholly owned subsidiaries are carried at cost
adjusted for equity in undistributed net income since organization or
acquisition of the subsidiaries.
(c) There were no dividends or interest earned which were not credited to
income.
PAGE 1
IDS CERTIFICATE COMPANY SCHEDULE III
(formerly IDS Certificate Company)
Mortgage Loans on Real Estate and Interest
Earned on Mortgages
Year Ended December 31, 2000
($ in thousands)
Part 1 - Mortgage loans on real estate at end of period
---- ---------------------------------------
Amount of principal
unpaid at end of period
---------------------
Carrying Subject Amount
amount of to of
Number Prior morgages delinquent mortgages
of liens (g), (h) interest being
Description (a) loans (b) and (i) Total (d) forclosed
- --------------------------------------------- ------ ----- ---------- --------- ------- -------
First mortgages:
Insured by Federal Housing Administration -
liens on:
Residential - under $100 0 $0 $0 $0 $0
Apartment and business - under $100 0 0 0 0 0
---- --------- ---------- ------- -------
Total 0 0 0 0 0
---- --------- ---------- ------- -------
Partially guaranteed under Serviceman's
Readjustment Act of 1944, as amended -
liens on:
Residential - under $100 0 0 0 0 0
Apartment and business - under $100 0 0 0 0 0
---- --------- ---------- ------- -------
Total 0 0 0 0 0
---- --------- ---------- ------- -------
Other - liens on:
Residential 0 0 0 0 0
---- --------- ---------- ------- -------
Apartment and business:
Under $100 0 0 0 0 0
$100 to $150 0 0 0 0 0
$150 to $200 1 155 155 0 0
$200 to $250 0 0 0 0 0
$250 to $300 0 0 0 0 0
$300 to $350 1 302 302 0 0
$350 to $400 0 0 0 0 0
$400 to $450 0 0 0 0 0
$450 to $500 0 0 0 0 0
Over $500:
Loan No. Mortgagor Property Location
20-00002 CCH-Space Center Houston, TX 1 1,813 1,813 0 0
21-47110 Village North Brooklyn Park, MN 1 1,515 1,515 0 0
21-47139 Treasure's Island Inc. Eagan, MN 1 1,352 1,352 0 0
21-47140 Harbour Run LTD Mentor-On-The-Lake, OH 1 3,704 3,704 0 0
21-47142 34th Street Properties Gainsville, FL 1 9,505 9,505 0 0
Partnership
21-47147 T & R Hilliard, OH 1 7,051 7,051 0 0
21-47150 Bircain Apartment Company LP Gladstone, MO 1 2,279 2,279 0 0
21-47152 One Union Rea Boston, MA 1 3,090 3,090 0 0
21-47154 GML Trust Randolp, MA 1 2,941 2,941 0 0
21-47157 John A. Belanich Tampa, FL 1 3,216 3,216 0 0
21-47160 James Esshaki DBA Taylor, MI 1 5,532 5,532 0 0
21-47164 Regency Halmilton, OH 1 5,438 5,438 0 0
21-47165 Bowling Green Partnership Sussex, WI 1 2,485 2,485 0 0
21-47167 Wilder Corp of Delaware Ruskin, FL 1 4,740 4,740 0 0
21-47168 Wilder Corp of Delaware Riverview, FL 1 2,616 2,616 0 0
21-47172 Bradley Oper Fremont, NE 1 2,753 2,753 0 0
21-47173 Cinram Associates Fairfield, NJ 1 3,801 3,801 0 0
21-47181 Westlake #1 Limited Partnership Charlotte, NC 1 2,064 2,064 0 0
21-47184 Mcnab Commerce Center
Association Pompano Beach, FL 1 1,993 1,993 0 0
PAGE 2
Part 1 - Mortgage loans on real estate at end of period
---- ---------------------------------------
Amount of principal
unpaid at end of period
---------------------
Carrying Subject Amount
amount of to of
Number Prior morgages delinquent mortgages
of liens (g), (h) interest being
Description (a) loans (b) and (i) Total (d) forclosed
- --------------------------------------------- ------ ----- ---------- --------- ------- -------
21-47186 Mack Edison Company Edison, NJ 1 5,950 5,950 0 0
21-47187 Industrial Development Mebane, NC 1 2,836 2,836 0 0
Association
21-47190 Bradley Oper Davenport, IA 1 3,734 3,734 0 0
21-47191 SSC Associates Ltd Ptnshp St. Clair Shores, MI 1 5,611 5,611 0 0
21-47195 Tipotex Inc. Pharr, TX 1 1,606 1,606 0 0
21-47196 Tropic Star Pharr, TX 1 3,482 3,482 0 0
21-47197 Winter Ranch Alamo, TX 1 823 823 0 0
21-47204 Fort Walton Mary Esther, FL 1 2,872 2,872 0 0
21-47205 Kavanagh Tucson, AZ 1 3,569 3,569 0 0
21-47206 Artrisco Albuquerque, NM 1 5,200 5,200 0 0
21-47208 Newport VI Albuquerque, NM 1 921 921 0 0
21-47209 Fountain Lake Brandeton, FL 1 5,430 5,430 0 0
21-47210 Orion West Haven, CT 1 4,108 4,108 0 0
21-47211 Plaza 7000 Greenwood Village, CO 1 2,359 2,359 0 0
21-47212 Howard Lake-Maple Plain Howard Lake, MN 1 1,282 1,282 0 0
21-47214 West Health Inc. Plymouth, MN 1 10,406 10,406 0 0
21-47215 Invespro Urbandale, IA 1 3,298 3,298 0 0
21-47216 Invespro Urbandale, IA 1 2,596 2,596 0 0
21-47217 Airport Tempe, AZ 1 6,697 6,697 0 0
21-47218 D&R Northpoin Sterling, VA 1 1,849 1,849 0 0
21-47219 Favorite Bay Albuquerque, NM 1 2,540 2,540 0 0
21-47223 Westwood Plaza Houston, TX 1 4,436 4,436 0 0
21-47224 Custer Office Plano, TX 1 1,865 1,865 0 0
21-47225 Valley Mining Eagan, MN 1 1,674 1,674 0 0
21-47226 Jake's LP Austin, TX 1 2,682 2,682 0 0
21-47227 PW Holdings Falls Township, PA 1 4,490 4,490 0 0
21-47228 Lafayette Square Bridgeport, CT 1 4,277 4,277 0 0
21-47230 Wilcrest Gree Houston, TX 1 2,068 2,068 0 0
21-47231 Midtown Mall Hastings, MN 1 2,023 2,023 0 0
21-47232 DHIR Group LLC Milwaukee, WI 1 4,572 4,572 0 0
21-47233 Capital Plaza Jefferson City, MO 1 2,079 2,079 0 0
21-47234 Southwest Medical Littleton, CO 1 3,180 3,180 0 0
21-47235 2507 & 2473 Assc Southport, CT 1 2,661 2,661 0 0
21-47237 Abmar Valley Roanoke, VA 1 1,727 1,727 0 0
21-47238 Cicero Place Cicero, IN 1 3,350 3,350 0 0
21-47240 Crystal Plaza Baltimore, MD 1 3,868 3,868 0 0
21-47241 Pal, Inc Sioux Falls, SD 1 1,182 1,182 0 0
21-47242 Northpoint AT San Antonio, TX 1 5,099 5,099 0 0
21-47243 Pam-Joy Realty Chesapeake. VA 1 2,959 2,959 0 0
21-47245 Tide Mill Southport, CT 1 2,417 2,417 0 0
21-47246 JLC, IX PF LTD Dallas, TX 1 984 984 0 0
21-47247 Airport Land Tempe, AZ 1 4,705 4,705 0 0
21-47248 HMJ Moorehead, MN 1 5,784 5,784 0 0
21-47249 MIDEB Ventura, CA 1 5,114 5,114 0 0
21-47250 Thomas Ribis Alexandria, VA 1 2,698 2,698 0 0
21-47251 Arcadia Villa Phoenix, AZ 1 2,757 2,757 0 0
21-47252 Broken Arrow Broken Arrow, OK 1 3,294 3,294 0 0
21-47253 Palo Verde Plaxa Phoenix, AZ 1 1,644 1,644 0 0
21-47254 Village S. Tulsa, OK 1 3,439 3,439 0 0
21-47255 Gaughan Forest Lake/ 1 5,713 5,713 0 0
Stillwater, MN
21-47256 Fremont Apts Rapid City, SD 1 1,138 1,138 0 0
21-47257 American Bank Plaza Corpus Christi, TX 1 7,006 7,006 0 0
21-47259 Anza Plaza Santa Clarita, CA 1 1,897 1,897 0 0
21-47260 Eisenhower 3 Ann Arbor, MI 1 2,940 2,940 0 0
21-47261 KKMP Properties Bloomington, MN 1 1,136 1,136 0 0
21-47262 312 Third Street Fargo, ND 1 5,693 5,693 0 0
21-47263 G.O.L.D Columbus, OH 1 2,157 2,157 0 0
21-47264 Esnet Properties Orem, UT 1 1,926 1,926 0 0
21-47265 Eaglecreek A Lakewood, CO 1 2,225 2,225 0 0
PAGE 3
Part 1 - Mortgage loans on real estate at end of period
---- ---------------------------------------
Amount of principal
unpaid at end of period
---------------------
Carrying Subject Amount
amount of to of
Number Prior morgages delinquent mortgages
of liens (g), (h) interest being
Description (a) loans (b) and (i) Total (d) forclosed
- --------------------------------------------- ------ ----- ---------- --------- ------- -------
21-47266 Independence Clarkston, MI 1 4,242 4,242 0 0
21-47267 Blairhill LLC Charlotte, NC 1 1,422 1,422 0 0
21-47268 Lemans Limited Seebring, FL 1 5,523 5,523 0 0
21-47269 Hampton Inn Spokane, WA 1 4,433 4,433 0 0
21-47270 Brookhollow-2 Houston, TX 1 2,757 2,757 0 0
21-47271 Wilsonville Wilsonville, OR 1 1,805 1,805 0 0
21-47272 Southeast Com Aurora, CO 1 1,943 1,943 0 0
21-47273 Sears Bldg Rapid City, SD 1 922 922 0 0
21-47274 Edison Towson, MD 1 1,161 1,161 0 0
21-47275 Colorado & SA Colorado Springs, CO 1 1,950 1,950 0 0
21-47277 Alvernon Place Tucson, AZ 1 2,217 2,217 0 0
21-47278 VL Grand Ridge Kennewick, WA 1 6,576 6,576 0 0
21-47279 Daniel G Chetek, WI 1 2,037 2,037 0 0
21-47281 Cleveland Shakers Heights, OH 1 2,435 2,435 0 0
21-47282 Cary Bldg LP Springfield, VA 1 2,180 2,180 0 0
21-47283 Paragon DTC P Englewood, CO 1 7,176 7,176 0 0
21-47284 Tarran Batavia, IL 1 3,546 3,546 0 0
21-47285 Equity One In Fort Meyers, FL 1 4,624 4,624 0 0
21-47286 Sandhill SQ Las Vegas, NV 1 2,544 2,544 0 0
21-47287 ML LTD Moen Rogers, MN 1 6,156 6,156 0 0
21-47288 Hilde Plymouth, MN 1 1,941 1,941 0 0
21-47289 Camp Morrison Newport News, VA 1 2,788 2,788 0 0
21-47290 Oakcliff Doraville, GA 1 2,686 2,686 0 0
21-47291 Truway Liverpool, NY 1 3,118 3,118 0 0
21-47292 Desert Inn Las Vegas, NV 1 5,370 5,370 0 0
21-47293 Julantru Corvallis, OR 1 4,365 4,365 0 0
21-47294 Carolace Emb. Hope Mills, NC 1 1,674 1,674 0 0
21-47295 Mastercraft Concord, OH 1 1,307 1,307 0 0
21-47296 Vivani Painesville, OH 1 1,071 1,071 0 0
21-47297 Vivani Concord, OH 1 1,802 1,802 0 0
21-47298 Shiland Hills Rock Hill, SC 1 935 935 0 0
21-47299 Crest Escondido, CA 1 2,240 2,240 0 0
---- --------- ---------- ------- -------
112 359,319 359,319 0 0
---- --------- ---------- ------- -------
Total Other 112 359,319 359,319 0 0
---- --------- ---------- ------- -------
Unallocated Reserve for Losses 744
---------
Total First Mortgage Loans on Real Estate 112 $358,575 $359,319 $0 $0
==== ========= ========== ======= =======
PAGE 4
Part 2 - Interest earned
on mortgages
---------------------
Average
Interest gross rate
due and of interest
accrued on mortgages
at end of held at end
period of period
Description (a) (e) (f)
- --------------------------------------------- --------- ----------
First mortgages:
Insured by Federal Housing Administration -
liens on:
Residential - under $100 0.000%
Apartment and business - under $100 0.000%
----------
Total 0.000%
----------
Partially guaranteed under Serviceman's
Readjustment Act of 1944, as amended -
liens on:
Residential - under $100 0.000%
Apartment and business - under $100 0.000%
----------
Total 0.000%
----------
Other - liens on:
Residential 0.000%
----------
Apartment and business:
Under $100 0.000%
$100 to $150 0.000%
$150 to $200 9.500%
$200 to $250 0.000%
$250 to $300 0.000%
$300 to $350 8.500%
$350 to $400 0.000%
$400 to $450 0.000%
$450 to $500 8.750%
Over $500:
Loan No. Mortgagor Property Location
20-00002 CCH-Space Center Houston, TX 8.000%
21-47110 Village North Brooklyn Park, MN 8.720%
21-47139 Treasure's Island Inc. Eagan, MN 7.480%
21-47140 Harbour Run LTD Mentor-On-The-Lake, OH 6.910%
21-47142 34th Street Properties
Partnership Gainsville, FL 7.050%
21-47147 T & R Hilliard, OH 7.990%
21-47150 Bircain Apartment Company LP Gladstone, MO 7.250%
21-47152 One Union Rea Boston, MA 8.000%
21-47154 GML Trust Randolp, MA 8.250%
21-47157 John A. Belanich Tampa, FL 7.650%
21-47160 James Esshaki DBA Taylor, MI 8.500%
21-47164 Regency Halmilton, OH 8.125%
21-47165 Bowling Green Partnership Sussex, WI 7.200%
21-47167 Wilder Corp of Delaware Ruskin, FL 7.500%
21-47168 Wilder Corp of Delaware Riverview, FL 7.500%
21-47172 Bradley Oper Fremont, NE 7.090%
21-47173 Cinram Associates Fairfield, NJ 7.260%
21-47181 Westlake #1 Limited Partnership Charlotte, NC 7.212%
21-47184 Mcnab Commerce Center
Association Pompano Beach, FL 8.250%
PAGE 5
Part 2 - Interest earned
on mortgages
---------------------
Average
Interest gross rate
due and of interest
accrued on mortgages
at end of held at end
period of period
Description (a) (e) (f)
- --------------------------------------------- --------- ----------
21-47186 Mack Edison Company Edison, NJ 6.850%
21-47187 Industrial Development Mebane, NC 7.220%
Association
21-47190 Bradley Oper Davenport, IA 7.875%
21-47191 SSC Associates Ltd Ptnshp St. Clair Shores, MI 7.000%
21-47195 Tipotex Inc. Pharr, TX 7.400%
21-47196 Tropic Star Pharr, TX 7.400%
21-47197 Winter Ranch Alamo, TX 7.400%
21-47204 Fort Walton Mary Esther, FL 8.125%
21-47205 Kavanagh Tucson, AZ 8.000%
21-47206 Artrisco Albuquerque, NM 8.250%
21-47208 Newport VI Albuquerque, NM 8.125%
21-47209 Fountain Lake Brandeton, FL 8.320%
21-47210 Orion West Haven, CT 7.875%
21-47211 Plaza 7000 Greenwood Village, CO 7.625%
21-47212 Howard Lake-Maple Plain Howard Lake, MN 7.750%
21-47214 West Health Inc. Plymouth, MN 7.450%
21-47215 Invespro Urbandale, IA 8.375%
21-47216 Invespro Urbandale, IA 8.375%
21-47217 Airport Tempe, AZ 8.375%
21-47218 D&R Northpoin Sterling, VA 8.500%
21-47219 Favorite Bay Albuquerque, NM 7.850%
21-47223 Westwood Plaza Houston, TX 8.230%
21-47224 Custer Office Plano, TX 7.320%
21-47225 Valley Mining Eagan, MN 7.210%
21-47226 Jake's LP Austin, TX 6.950%
21-47227 PW Holdings Falls Township, PA 6.650%
21-47228 Lafayette Square Bridgeport, CT 7.140%
21-47230 Wilcrest Gree Houston, TX 7.080%
21-47231 Midtown Mall Hastings, MN 7.140%
21-47232 DHIR Group LLC Milwaukee, WI 7.400%
21-47233 Capital Plaza Jefferson City, MO 7.150%
21-47234 Southwest Medical Littleton, CO 7.180%
21-47235 2507 & 2473 Assc Southport, CT 7.020%
21-47237 Abmar Valley Roanoke, VA 7.100%
21-47238 Cicero Place Cicero, IN 7.000%
21-47240 Crystal Plaza Baltimore, MD 7.020%
21-47241 Pal, Inc Sioux Falls, SD 7.050%
21-47242 Northpoint AT San Antonio, TX 7.330%
21-47243 Pam-Joy Realty Chesapeake. VA 6.960%
21-47245 Tide Mill Southport, CT 6.980%
21-47246 JLC, IX PF LTD Dallas, TX 7.010%
21-47247 Airport Land Tempe, AZ 6.890%
21-47248 HMJ Moorehead, MN 6.960%
21-47249 MIDEB Ventura, CA 6.750%
21-47250 Thomas Ribis Alexandria, VA 6.900%
21-47251 Arcadia Villa Phoenix, AZ 6.800%
21-47252 Broken Arrow Broken Arrow, OK 6.800%
21-47253 Palo Verde Plaxa Phoenix, AZ 6.800%
21-47254 Village S. Tulsa, OK 6.800%
21-47255 Gaughan Forest Lake/Stillwater, MN 6.830%
21-47256 Fremont Apts Rapid City, SD 6.750%
21-47257 American Bank Plaza Corpus Christi, TX 6.900%
21-47259 Anza Plaza Santa Clarita, CA 6.950%
21-47260 Eisenhower 3 Ann Arbor, MI 6.980%
21-47261 KKMP Properties Bloomington, MN 7.060%
21-47262 312 Third Street Fargo, ND 6.900%
21-47263 G.O.L.D Columbus, OH 6.950%
21-47264 Esnet Properties Orem, UT 6.810%
21-47265 Eaglecreek A Lakewood, CO 6.770%
PAGE 6
Part 2 - Interest earned
on mortgages
---------------------
Average
Interest gross rate
due and of interest
accrued on mortgages
at end of held at end
period of period
Description (a) (e) (f)
- --------------------------------------------- --------- ----------
21-47266 Independence Clarkston, MI 6.890%
21-47267 Blairhill LLC Charlotte, NC 6.910%
21-47268 Lemans Limited Seebring, FL 6.850%
21-47269 Hampton Inn Spokane, WA 7.150%
21-47270 Brookhollow-2 Houston, TX 6.800%
21-47271 Wilsonville Wilsonville, OR 6.850%
21-47272 Southeast Com Aurora, CO 6.440%
21-47273 Sears Bldg Rapid City, SD 6.850%
21-47274 Edison Towson, MD 6.850%
21-47275 Colorado & SA Colorado Springs, CO 6.550%
21-47277 Alvernon Place Tucson, AZ 7.000%
21-47278 VL Grand Ridge Kennewick, WA 6.750%
21-47279 Daniel G Chetek, WI 7.250%
21-47281 Cleveland Shakers Heights, OH 7.000%
21-47282 Cary Bldg LP Springfield, VA 6.850%
21-47283 Paragon DTC P Englewood, CO 6.800%
21-47284 Tarran Batavia, IL 7.000%
21-47285 Equity One In Fort Meyers, FL 6.750%
21-47286 Sandhill SQ Las Vegas, NV 7.000%
21-47287 ML LTD Moen Rogers, MN 7.300%
21-47288 Hilde Plymouth, MN 6.850%
21-47289 Camp Morrison Newport News, VA 6.900%
21-47290 Oakcliff Doraville, GA 7.000%
21-47291 Truway Liverpool, NY 7.000%
21-47292 Desert Inn Las Vegas, NV 6.900%
21-47293 Julantru Corvallis, OR 6.750%
21-47294 Carolace Emb. Hope Mills, NC 7.000%
21-47295 Mastercraft Concord, OH 7.000%
21-47296 Vivani Painesville, OH 7.000%
21-47297 Vivani Concord, OH 7.000%
21-47298 Shiland Hills Rock Hill, SC 7.250%
21-47299 Crest Escondido, CA 7.000%
----------
Total Other 7.276%
----------
Total First Mortgage Loans on Real Estate 7.276%
==========
PAGE 7
Part 3 - Location of mortgaged properties
($ in thousands)
Amount of
principal
unpaid at end
of period
-----------------
Carrying
amount of Subject
mortgages to Amount of
State in Number Prior (c), (g) delinquent mortgages
which mortgaged of liens (h), and interest being
property is located loans (b) (i) Total (d) foreclosed
- --------------------- ------- ---- ---------- ------- --------- ----------
Arizona 6 21,591 21,591 0 0
California 3 9,251 9,251 0 0
Colorado 6 18,832 18,832 0 0
Connecticut 4 13,463 13,463 0 0
Florida 9 40,520 40,520 0 0
Georgia 1 2,686 2,686 0 0
Illinois 1 3,546 3,546 0 0
Indiana 1 3,350 3,350 0 0
Iowa 3 9,628 9,628 0 0
Massachusetts 2 6,031 6,031 0 0
Maryland 2 5,029 5,029 0 0
Michigan 4 18,324 18,324 0 0
Minnesota 11 38,984 38,984 0 0
Missouri 2 4,358 4,358 0 0
Nebraska 1 2,754 2,754 0 0
Nevada 2 7,914 7,914 0 0
New Jersey 2 9,751 9,751 0 0
New Mexico 3 8,661 8,661 0 0
New York 1 3,118 3,118 0 0
North Carolina 5 9,302 9,302 0 0
North Dakota 1 5,693 5,693 0 0
Ohio 7 23,658 23,658 0 0
Oklahoma 2 6,733 6,733 0 0
Oregon 2 6,170 6,170 0 0
Pennsylvania 1 4,490 4,490 0 0
South Carolina 1 935 935 0 0
South Dakota 4 3,543 3,543 0 0
Texas 13 34,776 34,776 0 0
Utah 1 1,926 1,926 0 0
Virginia 6 14,200 14,200 0 0
Washington 2 11,009 11,009 0 0
Wisconsin 3 9,093 9,093 0 0
------- --------- ---------- --------- ---------
112 359,319 359,319 0 0
------- --------- ---------- --------- ---------
Unallocated Reserve
for Losses 744
---------
Total 112 $358,575 $359,319 $0 $0
======= ========= ========== ========= =========
PAGE 8
NOTES:
(a) The classification "residential" includes single dwellings only.
Residential multiple dwellings are included in "apartment and business".
(b) Real estate taxes and easements, which in the opinion of the Company are
not undue burden on the properties, have been excluded from the
determination of "prior liens".
(c) In this schedule III, carrying amount of mortgage loans represents unpaid
principal balances plus unamortized premiums less unamortized discounts and
reserve for loss.
(d) Interest in arrears for less than three months has been disregarded in
computing the total amount of principal subject to delinquent interest. The
amounts of mortgage loans being forclosed are also included in amounts
subject to delinquent interest.
(e) Information as to interest due and accrued for the various classes within
the types of mortgage loans is not readily available and the obtaining
thereof would involve unreasonable effort and expense.
The Company does not accrue interest on loans which are over three months
delinquent.
(f) Information as to interest income by type and class of loan has been
omitted because it is not readily available and the obtaining thereof would
involve unreasonable effort and expense. In lieu thereof, the average gross
interest rates (exclusive of amortization of discounts and premiums) on
mortgage loans held at December 31, 2000 are shown by type and class of
loan.
The average gross interest rates on mortgage loans held at December 31,
2000, 1999 and 1998 are summarized as follows:
2000 1999 1998
------------ ------------ ------------
First mortgages:
Insured by Federal Housing Administration 0.000% 0.000% 0.000%
Partially guaranteed under Servicemen's
Readjustment Act of 1944, as amended
0.000 0.000 0.000
Other
7.276 7.274 7.394
------------ ------------ ------------
Combined average 7.276% 7.274% 7.394%
============ ============ ============
PAGE 9 (g) Following is a reconciliation of the carrying amount of mortgage
loans for the years ended December 31, 2000, 1999 and 1998.
2000 1999 1998
------------ ------------ ------------
Balance at beginning of period $378,047 $334,280 $212,433
Additions during period:
New loans acquired:
Nonaffiliated companies 763 66,068 163,398
Reserve for loss reversal 0 100 0
------------ ------------ ------------
Total additions 763 66,168 163,398
------------ ------------ ------------
378,810 400,448 375,831
------------ ------------ ------------
Deductions during period:
Collections of principal 20,002 22,401 41,551
Reserve for loss 233 0 0
----------------------------------------
Total deductions 20,235 22,401 41,551
------------ ------------ ------------
Balance at end of period $358,575 $378,047 $334,280
============ ============ ============
(h) The aggregate cost of mortgage loans for federal income tax purposes at
December 31, 2000 was $359,319.
(i) At December 31, 2000, an unallocated reserve for loss on first mortgage
loans of $744 is recorded.
AMERICAN EXPRESS CERTIFICATE COMPANY SCHEDULE V
(formerly IDS Certificate Company)
Qualified Assets on Deposit
December 31, 2000
($ thousands)
Investment Securities
-------------------------
Bonds and Mortgage
Notes Stocks Loans Other
Name of Depositary (a) (b) (c) (d) Total
- --------------------------------------------- ----------- ------------ ---------- ---------- ------------
Deposits with states or their depositories to
meet requirements of statutes and
agreements:
Illinois - Secretary of
State of Illinois $49 $0 $0 $0 $49
New Jersey - Commissioner
of Banking and Insurance
of New Jersey 50 0 0 0 50
Pennsylvania - Treasurer
of the State of
Pennsylvania 149 0 0 0 149
Texas - Treasurer of the
State of Texas 112 0 0 0 112
----------- ------------ ---------- ---------- ------------
Total deposits with states or their
depositories to meet requirements
of statues and agreements 360 0 0 0 360
Central depository - American
Express Trust Company 3,143,904 444,932 358,575 104,200 4,051,611
----------- ------------ ---------- ---------- ------------
Total $3,144,264 $444,932 $358,575 $104,200 $4,051,971
=========== ============ ========== ========== ============
Notes:
(a) Represents amortized cost of bonds and notes.
(b) Represents average cost of individual issues of stocks.
(c) Represents unpaid principal balance of mortgage loans less unamortized
discounts and reserve for losses.
(d) Represents amortized cost of purchased call options.
PAGE 1
AMERICAN EXPRESS CERTIFICATE COMPANY SCHEDULE VI
(formerly IDS Certificate Company)
Certificate Reserves
Part 1 - Summary of Changes
Year ended December 31, 2000
($ in thousands) Balance at beginning of period
---------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
Description payment basis holders value reserves
----------- -------------------- ----------- ----------- --------------
Installment certificates:
Reserves to mature:
Series 15, includes extended maturities 2.40 Inst/2.50 Ext. 0 0 0
" 20, " " " 2.52 Inst/2.50 Ext. 2 28 22
" 15A, " " " 2.66 Inst/3.04 Ext. 2 17 17
" 22A, " " " 3.09 718 16,120 12,559
" I-76, " " " 3.35 474 10,847 6,220
" Reserve Plus Flexible Payment (note a) 181 1,666 778
" IC-Q-Installment (note a) 69 770 301
" IC-Q-Ins (note a) 2,502 29,257 13,100
" IC-Q-Ins Emp (note a) 14 146 105
" IC-I (note a) 33,476 569,104 211,200
" IC-I-Emp (note a) 190 2,659 1,239
" Inst (note a) 7,494 0 13,421
" Inst-Emp (note a) 35 0 49
" RP-Q-Installment (note a) 118 1,621 1,121
" RP-Q-Flexible Payment (note a) 12 154 73
" RP-Q-Ins (note a) 55 931 401
" RP-Q-Ins Emp (note a) 1 6 7
" RP-I (note a) 205 6,269 2,179
" RP-I-Emp (note a) 0 0 0
" Inst-R (note a) 59 0 113
" Inst-R-Emp (note a) 3 0 3
------- -------- --------------
Total 45,610 639,595 262,908
------- -------- --------------
Payments made in advance of certificate
year requirements and accrued interest
thereon:
Series 15, includes extended maturities 2 Not Not 0
" 20, " " " 2 Readily Applicable 0
" 15A, " " " 3 Available 3
" 22A, " " " 3 494
" I-76, " " " 3.5 341
--------------
Total 838
--------------
PAGE 2
Additions
---------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
payment basis or income holders part 2)
-------------------- ------------- ----------- -------------
Installment certificates:
Reserves to mature:
Series 15, includes extended maturities 2.40 Inst/2.50 Ext. 0 0 0
" 20, " " " 2.52 Inst/2.50 Ext. 1 0 0
" 15A, " " " 2.66 Inst/3.04 Ext. 0 0 0
" 22A, " " " 3.09 347 143 424
" I-76, " " " 3.35 192 171 42
" Reserve Plus Flexible Payment (note a) 0 133 22
" IC-Q-Installment (note a) 0 30 6
" IC-Q-Ins (note a) 0 1,202 263
" IC-Q-Ins Emp (note a) 0 10 3
" IC-I (note a) 0 40,405 6,953
" IC-I-Emp (note a) 0 244 52
" Inst (note a) 0 9,476 463
" Inst-Emp (note a) 0 47 2
" RP-Q-Installment (note a) 0 14 30
" RP-Q-Flexible Payment (note a) 0 1 2
" RP-Q-Ins (note a) 0 12 7
" RP-Q-Ins Emp (note a) 0 1 0
" RP-I (note a) 0 302 66
" RP-I-Emp (note a) 0 0 0
" Inst-R (note a) 0 99 4
" Inst-R-Emp (note a) 0 2 0
------- -------- -------------
Total 540 52,292 8,339
------- -------- -------------
Payments made in advance of certificate
year requirements and accrued interest
thereon:
Series 15, includes extended maturities 2 0 0 0
" 20, " " " 2 0 2 0
" 15A, " " " 3 0 0 0
" 22A, " " " 3 19 99 27
" I-76, " " " 3.5 14 33 2
------- -------- -------------
Total 33 134 29
------- -------- -------------
PAGE 3
Deductions
---------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
payment basis Maturities maturity part 2)
-------------------- ------------ ------------ -------------
Installment certificates:
Reserves to mature:
Series 15, includes extended maturities 2.40 Inst/2.50 Ext. 0 0 0
" 20, " " " 2.52 Inst/2.50 Ext. 0 0 14
" 15A, " " " 2.66 Inst/3.04 Ext. 10 0 0
" 22A, " " " 3.09 349 905 1,481
" I-76, " " " 3.35 0 920 240
" Reserve Plus Flexible Payment (note a) 15 240 0
" IC-Q-Installment (note a) 44 125 0
" IC-Q-Ins (note a) 3,251 4,673 1
" IC-Q-Ins Emp (note a) 34 27 0
" IC-I (note a) 0 89,433 0
" IC-I-Emp (note a) 0 412 0
" Inst (note a) 0 4,544 0
" Inst-Emp (note a) 0 21 0
" RP-Q-Installment (note a) 116 115 28
" RP-Q-Flexible Payment (note a) 8 8 0
" RP-Q-Ins (note a) 131 165 0
" RP-Q-Ins Emp (note a) 0 0 0
" RP-I (note a) 0 1,094 0
" RP-I-Emp (note a) 0 0 0
" Inst-R (note a) 0 33 0
" Inst-R-Emp (note a) 0 1 0
------- -------- -------------
Total 3,958 102,716 1,764
------- -------- -------------
Payments made in advance of certificate
year requirements and accrued interest
thereon:
Series 15, includes extended maturities 2 0 0 0
" 20, " " " 2 0 0 1
" 15A, " " " 3 2 0 0
" 22A, " " " 3 6 31 222
" I-76, " " " 3.5 0 62 13
------- -------- -------------
Total 8 93 236
------- -------- -------------
PAGE 4
Balance at close of period
---------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
payment basis holders value reserves
-------------------- ------------ --------- -------------
Installment certificates:
Reserves to mature:
Series 15, includes extended maturities 2.40 Inst/2.50 Ext. 0 0 0
" 20, " " " 2.52 Inst/2.50 Ext. 1 14 9
" 15A, " " " 2.66 Inst/3.04 Ext. 1 7 7
" 22A, " " " 3.09 575 13,437 10,738
" I-76, " " " 3.35 393 8,879 5,465
" Reserve Plus Flexible Payment (note a) 149 1,361 678
" IC-Q-Installment (note a) 48 572 168
" IC-Q-Ins (note a) 1,273 14,541 6,640
" IC-Q-Ins Emp (note a) 9 83 57
" IC-I (note a) 24,693 410,501 169,125
" IC-I-Emp (note a) 150 2,106 1,123
" Inst (note a) 7,685 0 18,816
" Inst-Emp (note a) 42 0 77
" RP-Q-Installment (note a) 103 1,351 906
" RP-Q-Flexible Payment (note a) 9 109 60
" RP-Q-Ins (note a) 18 508 124
" RP-Q-Ins Emp (note a) 1 6 8
" RP-I (note a) 142 4,244 1,453
" RP-I-Emp (note a) 1 0 0
" Inst-R (note a) 58 0 183
" Inst-R-Emp (note a) 2 0 4
------- -------- -------------
Total 35,353 457,719 215,641
------- -------- -------------
Payments made in advance of certificate
year requirements and accrued interest
thereon:
Series 15, includes extended maturities 2 Not Not 0
" 20, " " " 2 Readily Applicable 1
" 15A, " " " 3 Available 1
" 22A, " " " 3 380
" I-76, " " " 3.5 315
-------------
Total 697
-------------
PAGE 5
Balance at beginning of period
------------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
payment basis holders value reserves
----------------- -------------- ---------- -------------
Additional credits and accrued interest
thereon:
Series 15, includes extended maturities 2.5 Not Not 0
" 20, " " " 2.5 Readily Applicable 5
" 15A, " " " 3 Available 2
" 22A, " " " 3 3,004
" I-76, " " " 3.5 1,444
" Reserve Plus Flexible Payment (note a) 0
" IC-Q-Installment (note a) 0
" IC-Q-Ins (note a) 0
" IC-Q-Ins Emp (note a) 0
" IC-I (note a) 275
" IC-I-Emp (note a) 2
" Inst (note a) 15
" Inst-Emp (note a) 0
" RP-Q-Installment (note a) 0
" RP-Q-Flexible Payment (note a) 0
" RP-Q-Ins (note a) 0
" RP-Q-Ins Emp (note a) 0
" RP-I (note a) 3
" RP-I-Emp (note a) 0
" Inst-R (note a) 0
" Inst-R-Emp (note a) 0
-------------
Total 4,750
-------------
Reserve for accrued extra contribution 3rd year 6,434
Reserve for accrued extra contribution 6th year 0
Accrued interest on reserves in default I-76 3.5 2
Reserve for additional credits to be allowed
Installment Certificates-Special Additional Not Not
Credits I-76 Readily Applicable 0
Accrued for additional credits to be allowed at Available
next anniversary 44
Reserve for death and disability refund options 0
Reserve for reconversion of paid-up certificates 54
-------------
Total installment certificates 275,030
-------------
PAGE 6
Additions
---------------------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
payment basis or income holders part 2)
---------------- ---------------- ---------------- -----------------
Additional credits and accrued interest
thereon:
Series 15, includes extended maturities 2.5 0 Not 0
" 20, " " " 2.5 0 Applicable 0
" 15A, " " " 3 0 0
" 22A, " " " 3 79 117
" I-76, " " " 3.5 45 28
" Reserve Plus Flexible Payment (note a) 22 0
" IC-Q-Installment (note a) 6 0
" IC-Q-Ins (note a) 263 0
" IC-Q-Ins Emp (note a) 3 0
" IC-I (note a) 6,987 0
" IC-I-Emp (note a) 52 0
" Inst (note a) 472 0
" Inst-Emp (note a) 2 0
" RP-Q-Installment (note a) 30 0
" RP-Q-Flexible Payment (note a) 2 0
" RP-Q-Ins (note a) 7 0
" RP-Q-Ins Emp (note a) 0 0
" RP-I (note a) 65 0
" RP-I-Emp (note a) 4 0
" Inst-R (note a) 0 0
" Inst-R-Emp (note a) 0 0
------- --------------
Total 8,039 145
------- --------------
Reserve for accrued extra contribution 3rd year 458 (3,674) 0
Reserve for accrued extra contribution 6th year 0 0 0
Accrued interest on reserves in default I-76 3.5 5 0 1
Reserve for additional credits to be allowed
Installment Certificates-Special Additional
Credits I-76 0 0 0
Accrued for additional credits to be allowed at
next anniversary 109 0 0
Reserve for death and disability refund options 0 0 0
Reserve for reconversion of paid-up certificates 0 0 0
------- -------- --------------
Total installment certificates 9,184 48,752 8,514
------- -------- --------------
PAGE 7
Deductions
--------------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
payment basis Maturities maturity part 2)
---------------- -------------- -------------- ------------
Additional credits and accrued interest
thereon:
Series 15, includes extended maturities 2.5 0 0 0
" 20, " " " 2.5 0 0 3
" 15A, " " " 3 2 0 0
" 22A, " " " 3 98 214 359
" I-76, " " " 3.5 0 202 50
" Reserve Plus Flexible Payment (note a) 0 0 22
" IC-Q-Installment (note a) 0 0 6
" IC-Q-Ins (note a) 0 0 263
" IC-Q-Ins Emp (note a) 0 0 3
" IC-I (note a) 0 0 6,960
" IC-I-Emp (note a) 0 0 52
" Inst (note a) 0 0 463
" Inst-Emp (note a) 0 0 2
" RP-Q-Installment (note a) 0 0 30
" RP-Q-Flexible Payment (note a) 0 0 2
" RP-Q-Ins (note a) 0 0 7
" RP-Q-Ins Emp (note a) 0 0 0
" RP-I (note a) 0 0 66
" RP-I-Emp (note a) 0 0 4
" Inst-R (note a) 0 0 0
" Inst-R-Emp (note a) 0 0 0
------- -------- -------------
Total 100 416 8,292
------- -------- -------------
Reserve for accrued extra contribution 3rd year 0 0 0
Reserve for accrued extra contribution 6th year 0 0 0
Accrued interest on reserves in default I-76 3.5 0 1 6
Reserve for additional credits to be allowed
Installment Certificates-Special Additional
Credits I-76 0 0 0
Accrued for additional credits to be allowed at
next anniversary 0 0 79
Reserve for death and disability refund options 0 0 0
Reserve for reconversion of paid-up certificates 0 0 0
------- -------- -------------
Total installment certificates 4,066 103,226 10,377
------- -------- -------------
PAGE 8
Balance at close of period
-------------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
payment basis holders value reserves
------------------ -------------- ------------ --------------
Additional credits and accrued interest
thereon:
Series 15, includes extended maturities 2.5 Not Not 0
" 20, " " " 2.5 Readily Applicable 2
" 15A, " " " 3 Available 0
" 22A, " " " 3 2,529
" I-76, " " " 3.5 1,265
" Reserve Plus Flexible Payment (note a) 0
" IC-Q-Installment (note a) 0
" IC-Q-Ins (note a) 0
" IC-Q-Ins Emp (note a) 0
" IC-I (note a) 302
" IC-I-Emp (note a) 2
" Inst (note a) 24
" Inst-Emp (note a) 0
" RP-Q-Installment (note a) 0
" RP-Q-Flexible Payment (note a) 0
" RP-Q-Ins (note a) 0
" RP-Q-Ins Emp (note a) 0
" RP-I (note a) 2
" RP-I-Emp (note a) 0
" Inst-R (note a) 0
" Inst-R-Emp (note a) 0
--------------
Total 4,126
--------------
Reserve for accrued extra contribution 3rd year 3,218
Reserve for accrued extra contribution 6th year 0
Accrued interest on reserves in default I-76 3.5 1
Reserve for additional credits to be allowed
Installment Certificates-Special Additional Not Not
Credits I-76 Readily Applicable 0
Accrued for additional credits to be allowed at Available
next anniversary 74
Reserve for death and disability refund options 0
Reserve for reconversion of paid-up certificates 54
--------------
Total installment certificates 223,811
--------------
PAGE 9
Balance at beginning of period
--------------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
payment basis holders value reserves
----------------- -------------- ---------- ---------------
Fully paid certificates:
Single-Payment certificates:
SP 78 3.5 0 0 0
SP 79 3.5 34 281 280
SP 80 3.5 302 2,407 2,350
SP 81A 3.5 258 1,552 1,460
SP 82A 3.5 228 2,133 1,944
SP 82B 3.5 388 3,489 3,141
SP 83A 3.5 69 523 464
SP 83B 3.5 161 1,568 1,368
IC-2-84 3.5 558 5,457 4,606
IC-2-85 3.5 304 3,177 3,597
IC-2-86 3.5 156 1,787 1,789
IC-2-87 3.5 209 2,876 2,686
IC-2-88 3.5 390 5,611 4,762
Reserve Plus Single Payment (note a) 665 3,310 5,549
Cash Reserve Single Payment (note b) 27 165 161
IC-Flexible Savings (formally Variable Term) (note d) 67,254 450,978 511,761
IC-Flexible Savings Emp (formally Variable Term) (note d) 1,039 12,398 15,293
IC-Preferred Investors (note d) 115 102 103,901
IC-Investors (note d) 573 783,371 838,044
IC-Special Deposits (note d) 115 136,183 148,255
IC-1-84 (note c) 44 308 287
Cash Reserve Variable Payment (note b) 374 1,964 2,564
Cash Reserve Variable Payment-3mo. (note e) 41,035 157,871 167,776
IC-Future Value (note f) 4,564 49,454 49,455
IC-Future Value Emp (note f) 90 724 723
IC-Stock Market (note g) 109,177 434,918 503,813
IC-Market Strategy (note g) 13,602 199,544 204,221
Equity Indexed Savings (note g) 0 0 0
IC-AEBI Stock Market (note g) 83 17,772 18,417
------- -------- ---------------
Total 241,814 2,279,923 2,598,667
------- -------- ---------------
PAGE 10
Additions
-----------------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
payment basis or income holders part 2)
-------------- ---------------- -------------- ---------------
Fully paid certificates:
Single-Payment certificates:
SP 78 3.5 0 0 0
SP 79 3.5 1 0 0
SP 80 3.5 51 0 0
SP 81A 3.5 47 0 0
SP 82A 3.5 61 0 0
SP 82B 3.5 97 0 0
SP 83A 3.5 15 0 0
SP 83B 3.5 42 0 0
IC-2-84 3.5 143 0 0
IC-2-85 3.5 0 0 146
IC-2-86 3.5 0 0 71
IC-2-87 3.5 0 0 107
IC-2-88 3.5 0 0 186
Reserve Plus Single Payment (note a) 0 0 213
Cash Reserve Single Payment (note b) 0 0 7
IC-Flexible Savings (formally Variable Term) (note d) 0 163,832 24,509
IC-Flexible Savings Emp (formally Variable Term) (note d) 0 636 699
IC-Preferred Investors (note d) 0 214,279 8,412
IC-Investors (note d) 0 592,861 54,057
IC-Special Deposits (note d) 0 27,964 7,506
IC-1-84 (note c) 0 0 12
Cash Reserve Variable Payment (note b) 0 286 90
Cash Reserve Variable Payment-3mo. (note e) 0 121,566 6,238
IC-Future Value (note f) 0 0 0
IC-Future Value Emp (note f) 0 0 0
IC-Stock Market (note g) 0 138,371 31,415
IC-Market Strategy (note g) (2) 134,373 11,800
Equity Indexed Savings (note g) 0 108 0
IC-AEBI Stock Market (note g) 0 15,290 788
------- -------- ---------------
Total 455 1,409,566 146,256
------- -------- ---------------
PAGE 11
Deductions
--------------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
payment basis Maturities maturity part 2)
----------------- -------------- ------------- ---------------
Fully paid certificates:
Single-Payment certificates:
SP 78 3.5 0 0 0
SP 79 3.5 230 8 28
SP 80 3.5 1,453 501 101
SP 81A 3.5 0 206 0
SP 82A 3.5 0 509 0
SP 82B 3.5 0 636 0
SP 83A 3.5 0 49 0
SP 83B 3.5 0 255 0
IC-2-84 3.5 0 822 36
IC-2-85 3.5 0 845 0
IC-2-86 3.5 0 284 0
IC-2-87 3.5 0 398 0
IC-2-88 3.5 0 900 18
Reserve Plus Single Payment (note a) 0 1,048 0
Cash Reserve Single Payment (note b) 0 7 0
IC-Flexible Savings (formally Variable Term) (note d) 0 181,591 0
IC-Flexible Savings Emp (formally Variable Term) (note d) 0 3,119 0
IC-Preferred Investors (note d) 0 152,021 0
IC-Investors (note d) 0 395,303 0
IC-Special Deposits (note d) 0 74,030 0
IC-1-84 (note c) 0 38 0
Cash Reserve Variable Payment (note b) 0 906 0
Cash Reserve Variable Payment-3mo. (note e) 0 160,369 0
IC-Future Value (note f) 15,553 4,882 0
IC-Future Value Emp (note f) 235 30 0
IC-Stock Market (note g) 0 143,596 0
IC-Market Strategy (note g) 0 46,754 0
Equity Indexed Savings (note g) 0 0 0
IC-AEBI Stock Market (note g) 0 7,499 0
------- -------- ---------------
Total 17,471 1,176,606 183
------- -------- ---------------
PAGE 12
Balance at close of period
--------------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
payment basis holders value reserves
----------------- -------------- ------------- ---------------
Fully paid certificates:
Single-Payment certificates:
SP 78 3.5 0 0 0
SP 79 3.5 2 15 15
SP 80 3.5 55 346 346
SP 81A 3.5 219 1,337 1,301
SP 82A 3.5 181 1,586 1,496
SP 82B 3.5 312 2,792 2,602
SP 83A 3.5 59 467 430
SP 83B 3.5 135 1,279 1,155
IC-2-84 3.5 460 4,454 3,891
IC-2-85 3.5 202 3,135 2,898
IC-2-86 3.5 128 1,998 1,576
IC-2-87 3.5 177 2,856 2,395
IC-2-88 3.5 315 5,034 4,030
Reserve Plus Single Payment (note a) 550 217,168 4,714
Cash Reserve Single Payment (note b) 23 145 161
IC-Flexible Savings (formally Variable Term) (note d) 61,304 453,804 518,511
IC-Flexible Savings Emp (formally Variable Term) (note d) 863 10,666 13,509
IC-Preferred Investors (note d) 145 168,452 174,571
IC-Investors (note d) 692 1,018,167 1,089,659
IC-Special Deposits (note d) 65 97,100 109,695
IC-1-84 (note c) 36 290 261
Cash Reserve Variable Payment (note b) 302 1,498 2,034
Cash Reserve Variable Payment-3mo. (note e) 37,615 125,632 135,211
IC-Future Value (note f) 2,729 29,020 29,020
IC-Future Value Emp (note f) 57 459 458
IC-Stock Market (note g) 106,220 451,654 530,003
IC-Market Strategy (note g) 19,903 291,598 303,638
Equity Indexed Savings (note g) 4 108 108
IC-AEBI Stock Market (note g) 99 26,134 26,996
------- -------- ---------------
Total 232,852 2,917,194 2,960,684
------- -------- ---------------
PAGE 13
Balance at beginning of period
-----------------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
payment basis holders value reserves
-------------- ------------------ ------------ ---------------
Additional credits and accrued interest thereon:
SP 78 3.5 Not Not 0
SP 79 3.5 Applicable Applicable 278
SP 80 3.5 2,238
SP 81A 3.5 1,075
SP 82A 3.5 1,426
SP 82B 3.5 2,140
SP 83A 3.5 259
SP 83B 3.5 709
IC-2-84 3.5 2,396
IC-2-85 3.5 61
IC-2-86 3.5 28
IC-2-87 3.5 48
IC-2-88 3.5 87
Reserve Plus Single Payment (note a) 0
Cash Reserve Single Payment (note b) 0
IC-Flexible Savings (formally Variable Term) (note d) 986
IC-Flexible Savings Emp (formally Variable Term) (note d) 263
IC-Preferred Investors (note d) 33
IC-Investors (note d) 2,025
IC-Special Deposits (note d) 332
IC-1-84 (note c) 5
Cash Reserve Variable Payment (note b) 0
Cash Reserve Variable Payment-3mo. (note e) 259
IC-Future Value (note f) 23,728
IC-Future Value Emp (note f) 400
IC-Stock Market (note g) 1,584
IC-Market Strategy (note g) 244
Equity Indexed Savings (note g) 0
IC-AEBI Stock Market (note g) 72
---------------
Total 40,676
---------------
PAGE 14
Additions
-----------------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
payment basis or income holders part 2)
-------------- ---------------- -------------- ---------------
Additional credits and accrued interest thereon:
SP 78 3.5 0 0 0
SP 79 3.5 1 0 3
SP 80 3.5 49 0 30
SP 81A 3.5 35 0 17
SP 82A 3.5 45 0 30
SP 82B 3.5 67 0 37
SP 83A 3.5 8 0 5
SP 83B 3.5 22 0 15
IC-2-84 3.5 75 0 54
IC-2-85 3.5 112 0 0
IC-2-86 3.5 59 0 0
IC-2-87 3.5 90 0 0
IC-2-88 3.5 156 0 0
Reserve Plus Single Payment (note a) 213 0 0
Cash Reserve Single Payment (note b) 7 0 0
IC-Flexible Savings (formally Variable Term) (note d) 27,831 0 0
IC-Flexible Savings Emp (formally Variable Term) (note d) 8,875 0 0
IC-Preferred Investors (note d) 817 0 0
IC-Investors (note d) 60,604 0 0
IC-Special Deposits (note d) 7,572 0 0
IC-1-84 (note c) 13 0 1
Cash Reserve Variable Payment (note b) 96 0 0
Cash Reserve Variable Payment-3mo. (note e) 6,305 0 0
IC-Future Value (note f) 4,048 0 0
IC-Future Value Emp (note f) 73 0 0
IC-Stock Market (note g) 2,604 0 0
IC-Market Strategy (note g) 3,799 0 0
Equity Indexed Savings (note g) 0 0 0
IC-AEBI Stock Market (note g) 150 0 0
------- -------- ---------------
Total 123,726 0 192
------- -------- ---------------
PAGE 15
Deductions
-----------------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
payment basis Maturities maturity part 2)
-------------- ----------------- ------------- ---------------
Additional credits and accrued interest thereon:
SP 78 3.5 0 0 0
SP 79 3.5 231 8 28
SP 80 3.5 1,437 469 83
SP 81A 3.5 0 165 0
SP 82A 3.5 0 385 0
SP 82B 3.5 0 428 0
SP 83A 3.5 0 28 0
SP 83B 3.5 0 132 0
IC-2-84 3.5 0 437 21
IC-2-85 3.5 0 7 120
IC-2-86 3.5 0 4 58
IC-2-87 3.5 0 4 89
IC-2-88 3.5 0 13 157
Reserve Plus Single Payment (note a) 0 0 213
Cash Reserve Single Payment (note b) 0 0 7
IC-Flexible Savings (formally Variable Term) (note d) 0 3,089 24,533
IC-Flexible Savings Emp (formally Variable Term) (note d) 0 261 8,412
IC-Preferred Investors (note d) 0 118 699
IC-Investors (note d) 0 5,874 54,057
IC-Special Deposits (note d) 0 138 7,506
IC-1-84 (note c) 0 1 13
Cash Reserve Variable Payment (note b) 0 6 90
Cash Reserve Variable Payment-3mo. (note e) 0 88 6,243
IC-Future Value (note f) 7,553 2,744 0
IC-Future Value Emp (note f) 126 9 0
IC-Stock Market (note g) 0 195 2,369
IC-Market Strategy (note g) 0 10 3,721
Equity Indexed Savings (note g) 0 0 0
IC-AEBI Stock Market (note g) 0 12 152
------- -------- ---------------
Total 9,347 14,625 108,571
------- -------- ---------------
PAGE 16
Balance at close of period
-----------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
payment basis holders value reserves
-------------------- ------------- ------------ --------------
Additional credits and accrued interest thereon:
SP 78 3.5 Not Not 0
SP 79 3.5 Applicable Applicable 15
SP 80 3.5 328
SP 81A 3.5 962
SP 82A 3.5 1,116
SP 82B 3.5 1,816
SP 83A 3.5 244
SP 83B 3.5 614
IC-2-84 3.5 2,067
IC-2-85 3.5 46
IC-2-86 3.5 25
IC-2-87 3.5 45
IC-2-88 3.5 73
Reserve Plus Single Payment (note a) 0
Cash Reserve Single Payment (note b) 0
IC-Flexible Savings (formally Variable Term) (note d) 1,195
IC-Flexible Savings Emp (formally Variable Term) (note d) 465
IC-Preferred Investors (note d) 33
IC-Investors (note d) 2,698
IC-Special Deposits (note d) 260
IC-1-84 (note c) 5
Cash Reserve Variable Payment (note b) 0
Cash Reserve Variable Payment-3mo. (note e) 233
IC-Future Value (note f) 17,479
IC-Future Value Emp (note f) 338
IC-Stock Market (note g) 1,624
IC-Market Strategy (note g) 312
Equity Indexed Savings (note g) 0
IC-AEBI Stock Market (note g) 58
--------------
Total 32,051
--------------
PAGE 17
Balance at beginning of period
-----------------------------------------
Number
of
accounts Amount
with of Amount
security maturity of
holders value reserves
------------ ------------ ---------------
Accrued for additional credits to be allowed
at next anniversaries:
SP 78 Not Not 0
SP 79 Applicable Applicable 3
SP 80 15
SP 81A 8
SP 82A 9
SP 82B 18
SP 83A 3
SP 83B 7
IC-2-84 23
IC-2-85 12
IC-2-86 6
IC-2-87 9
IC-2-88 14
IC-Stock Market 35,144
IC-Market Strategy 10,303
Equity Indexed Savings
IC-AEBI Stock Market 951
--------------
Total 46,525
--------------
PAGE 18
Additions
-----------------------------------------
Charged
Charged Reserve to other
to profit payments by accounts
and loss certificate (per
or income holders part 2)
------------ ------------ ---------------
Accrued for additional credits to be allowed
at next anniversaries:
SP 78 0 0 0
SP 79 0 0 0
SP 80 22 0 0
SP 81A 24 0 0
SP 82A 34 0 0
SP 82B 49 0 0
SP 83A 8 0 0
SP 83B 18 0 0
IC-2-84 68 0 0
IC-2-85 33 0 0
IC-2-86 18 0 0
IC-2-87 26 0 0
IC-2-88 41 0 0
IC-Stock Market (4,624) 0 0
IC-Market Strategy (1,656) 0 0
Equity Indexed Savings 0 0 0
IC-AEBI Stock Market (267) 0 0
------- -------- ---------------
Total (6,206) 0 0
------- -------- ---------------
PAGE 19
Deductions
-----------------------------------------
Credited
Cash to other
surrenders accounts
prior to (per
Maturities maturity part 2)
----------- -------------- --------------
Accrued for additional credits to be allowed
at next anniversaries:
SP 78 0 0 0
SP 79 0 0 3
SP 80 0 0 30
SP 81A 0 0 17
SP 82A 0 0 30
SP 82B 0 0 37
SP 83A 0 0 5
SP 83B 0 0 15
IC-2-84 0 0 54
IC-2-85 0 0 26
IC-2-86 0 0 13
IC-2-87 0 0 18
IC-2-88 0 0 29
IC-Stock Market 0 1,338 29,062
IC-Market Strategy 0 485 8,082
Equity Indexed Savings 0 0 0
IC-AEBI Stock Market 0 40 635
------- -------- --------------
Total 0 1,863 38,056
------- -------- --------------
PAGE 20
Balance at close of period
-----------------------------------------
Number
of
accounts Amount
with of Amount
security maturity of
holders value reserves
------------ ------------ ---------------
Accrued for additional credits to be allowed
at next anniversaries:
SP 78 Not Not 0
SP 79 Applicable Applicable 0
SP 80 7
SP 81A 15
SP 82A 13
SP 82B 30
SP 83A 6
SP 83B 10
IC-2-84 37
IC-2-85 19
IC-2-86 11
IC-2-87 17
IC-2-88 26
IC-Stock Market 120
IC-Market Strategy 80
Equity Indexed Savings 0
IC-AEBI Stock Market 9
---------------
Total 400
---------------
PAGE 21
Balance at beginning of period
-----------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
payment basis holders value reserves
-------------------- ----------- ------------- ---------------
R Series Single-Payment certificates:
R-76 3.5 5 54 51
R-77 3.5 24 237 217
R-78 3.5 50 467 392
R-79 3.5 72 828 680
R-80 3.5 66 572 435
R-81 3.5 30 370 251
R-82A 3.5 156 1,144 690
RP-Q (note a) 383 618 1,531
R-II 3.5 112 1,047 486
RP-2-84 3.5 313 3,620 1,583
RP-2-85 3.5 102 397 439
RP-2-86 3.5 27 120 121
RP-2-87 3.5 61 351 327
RP-2-88 3.5 83 466 393
Cash Reserve RP (note b) 5 15 30
IC-Flexible Savings RP (note d) 11,090 116,822 131,924
RP-Preferred Investors (note d) 7 4,626 4,763
Cash Reserve RP-3 mo. (note e) 2,199 23,612 24,839
IC-Flexible Savings RP Emp (note d) 323 5,639 6,654
RP-Future Value (note f) 3,824 62,665 62,665
RP-Future Value Emp (note f) 106 1,719 1,719
RP-Stock Market (note g) 12,149 91,886 105,232
RP-Market Strategy (note g) 1,870 53,356 54,555
D-1 (note a) 178 20,438 25,727
------- -------- ---------------
Total 33,235 391,069 425,704
------- -------- ---------------
PAGE 22
Additions
-----------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
payment basis or income holders part 2)
-------------------- ------------ ------------ ---------------
R Series Single-Payment certificates:
R-76 3.5 0 0 2
R-77 3.5 0 0 9
R-78 3.5 0 0 16
R-79 3.5 0 0 28
R-80 3.5 0 0 17
R-81 3.5 0 0 10
R-82A 3.5 0 0 27
RP-Q (note a) 0 0 58
R-II 3.5 0 0 20
RP-2-84 3.5 0 0 63
RP-2-85 3.5 0 0 17
RP-2-86 3.5 0 0 5
RP-2-87 3.5 0 0 14
RP-2-88 3.5 0 0 16
Cash Reserve RP (note b) 0 0 1
IC-Flexible Savings RP (note d) 0 84,048 7,332
RP-Preferred Investors (note d) 0 11,037 602
Cash Reserve RP-3 mo. (note e) 0 37,031 868
IC-Flexible Savings RP Emp (note d) 0 234 339
RP-Future Value (note f) 0 0 0
RP-Future Value Emp (note f) 0 0 0
RP-Stock Market (note g) 0 34,173 6,830
RP-Market Strategy (note g) 0 42,441 3,138
D-1 (note a) 0 193 1,363
------- -------- ---------------
Total 0 209,157 20,775
------- -------- ---------------
PAGE 23
Deductions
-----------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
payment basis Maturities maturity part 2)
-------------------- ------------ ------------ ---------------
R Series Single-Payment certificates:
R-76 3.5 0 30 0
R-77 3.5 0 19 0
R-78 3.5 0 62 0
R-79 3.5 0 91 0
R-80 3.5 0 98 0
R-81 3.5 0 38 0
R-82A 3.5 0 160 0
RP-Q (note a) 0 342 0
R-II 3.5 0 155 0
RP-2-84 3.5 0 368 0
RP-2-85 3.5 0 79 0
RP-2-86 3.5 0 47 0
RP-2-87 3.5 0 59 0
RP-2-88 3.5 0 57 0
Cash Reserve RP (note b) 0 0 0
IC-Flexible Savings RP (note d) 0 43,690 0
RP-Preferred Investors (note d) 0 3,145 0
Cash Reserve RP-3 mo. (note e) 0 44,747 0
IC-Flexible Savings RP Emp (note d) 0 1,984 0
RP-Future Value (note f) 17,448 4,892 0
RP-Future Value Emp (note f) 387 62 0
RP-Stock Market (note g) 0 32,250 0
RP-Market Strategy (note g) 0 11,483 0
D-1 (note a) 2 3,998 0
------- -------- ---------------
Total 17,837 147,856 0
------- -------- ---------------
PAGE 24
Balance at close of period
-----------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
payment basis holders value reserves
-------------------- ------------ ------------ ---------------
R Series Single-Payment certificates:
R-76 3.5 5 24 23
R-77 3.5 21 371 207
R-78 3.5 46 404 346
R-79 3.5 59 766 617
R-80 3.5 54 497 354
R-81 3.5 24 315 223
R-82A 3.5 131 1,078 557
RP-Q (note a) 311 533 1,247
R-II 3.5 85 734 351
RP-2-84 3.5 248 3,201 1,278
RP-2-85 3.5 87 331 377
RP-2-86 3.5 20 77 79
RP-2-87 3.5 52 1,074 282
RP-2-88 3.5 69 513 352
Cash Reserve RP (note b) 5 15 31
IC-Flexible Savings RP (note d) 11,850 162,775 179,614
RP-Preferred Investors (note d) 21 12,607 13,257
Cash Reserve RP-3 mo. (note e) 1,708 16,872 17,991
IC-Flexible Savings RP Emp (note d) 284 4,242 5,243
RP-Future Value (note f) 2,365 40,326 40,325
RP-Future Value Emp (note f) 74 1,269 1,270
RP-Stock Market (note g) 12,306 99,687 113,985
RP-Market Strategy (note g) 2,962 85,505 88,651
D-1 (note a) 162 17,935 23,283
------- -------- ---------------
Total 32,949 451,151 489,943
------- -------- ---------------
PAGE 25
Balance at beginning of period
-----------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
payment basis holders value reserves
-------------------- ------------ ------------ ---------------
Additional Interest on R-Series Single
Payment Reserves:
R-76 3.5 Not Not 1
R-77 3.5 Applicable Applicable 3
R-78 3.5 10
R-79 3.5 13
R-80 3.5 13
R-81 3.5 5
R-82A 3.5 24
RP-Q (note a) 0
R-II 3.5 13
RP-2-84 3.5 38
RP-2-85 3.5 12
RP-2-86 3.5 2
RP-2-87 3.5 9
RP-2-88 3.5 8
Cash Reserve RP (note b) 0
IC-Flexible Savings RP (note d) 262
RP-Preferred Investors (note d) 16
Cash Reserve RP-3 mo. (note e) 36
IC-Flexible Savings RP Emp (note d) 12
IC-Future Value (note f) 31,007
IC-Future Value Emp (note f) 1,057
RP-Stock Market (note g) 292
RP-Market Strategy (note g) 59
D-1 (note a) 0
---------------
Total 32,892
---------------
Accrued for additional credits to be allowed
at next anniversaries:
RP-Stock Market 7,477
RP-Market Strategy 2,519
---------------
Total single payment 3,154,460
---------------
Paid-up certificates:
Series 15 and 20 3.25 9 101 91
" 15A and 22A 3.5 298 5,992 5,207
" I-76 3.5 569 2,910 2,053
------- -------- ---------------
Total 876 9,003 7,351
------- -------- ---------------
PAGE 26
Additions
-----------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
payment basis or income holders part 2)
-------------------- ----------- ------------- --------------
Additional Interest on R-Series Single
Payment Reserves:
R-76 3.5 2 0 0
R-77 3.5 10 0 0
R-78 3.5 18 0 0
R-79 3.5 30 0 0
R-80 3.5 18 0 0
R-81 3.5 11 0 0
R-82A 3.5 29 0 0
RP-Q (note a) 58 0 0
R-II 3.5 19 0 0
RP-2-84 3.5 64 0 0
RP-2-85 3.5 19 0 0
RP-2-86 3.5 5 0 0
RP-2-87 3.5 14 0 0
RP-2-88 3.5 17 0 0
Cash Reserve RP (note b) 1 0 0
IC-Flexible Savings RP (note d) 8,274 0 0
RP-Preferred Investors (note d) 626 0 0
Cash Reserve RP-3 mo. (note e) 866 0 0
IC-Flexible Savings RP Emp (note d) 363 0 0
IC-Future Value (note f) 5,389 0 0
IC-Future Value Emp (note f) 197 0 0
RP-Stock Market (note g) 503 0 0
RP-Market Strategy (note g) 1,209 0 0
D-1 (note a) 1,462 0 0
------- -------- ---------------
Total 19,204 0 0
------- -------- ---------------
Accrued for additional credits to be allowed
at next anniversaries:
RP-Stock Market (842) 0 0
RP-Market Strategy (394) 0 0
------- -------- ---------------
Total single payment 135,943 1,618,723 167,223
------- -------- ---------------
Paid-up certificates:
Series 15 and 20 3.25 3 0 0
" 15A and 22A 3.5 168 0 597
" I-76 3.5 71 0 295
------- -------- ---------------
Total 242 0 892
------- -------- ---------------
PAGE 27
Deductions
-----------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
payment basis Maturities maturity part 2)
-------------------- ------------ ------------ ---------------
Additional Interest on R-Series Single
Payment Reserves:
R-76 3.5 0 1 2
R-77 3.5 0 1 9
R-78 3.5 0 2 16
R-79 3.5 0 2 28
R-80 3.5 0 2 17
R-81 3.5 0 0 10
R-82A 3.5 0 3 27
RP-Q (note a) 0 0 58
R-II 3.5 0 2 20
RP-2-84 3.5 0 3 63
RP-2-85 3.5 0 1 17
RP-2-86 3.5 0 0 5
RP-2-87 3.5 0 0 14
RP-2-88 3.5 0 1 16
Cash Reserve RP (note b) 0 0 1
IC-Flexible Savings RP (note d) 0 781 7,332
RP-Preferred Investors (note d) 0 4 602
Cash Reserve RP-3 mo. (note e) 0 2 868
IC-Flexible Savings RP Emp (note d) 0 23 339
IC-Future Value (note f) 9,212 2,604 0
IC-Future Value Emp (note f) 293 50 0
RP-Stock Market (note g) 0 45 437
RP-Market Strategy (note g) 0 3 1,191
D-1 (note a) 0 96 1,363
------- -------- ---------------
Total 9,505 3,626 12,435
------- -------- ---------------
Accrued for additional credits to be allowed
at next anniversaries:
RP-Stock Market 0 208 6,394
RP-Market Strategy 0 154 1,947
------- -------- ---------------
Total single payment 54,160 1,344,938 167,586
------- -------- ---------------
Paid-up certificates:
Series 15 and 20 3.25 18 0 0
" 15A and 22A 3.5 298 499 442
" I-76 3.5 0 336 37
------- -------- ---------------
Total 316 835 479
------- -------- ---------------
PAGE 28
Balance at close of period
-----------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
payment basis holders value reserves
-------------------- ------------ ------------ ---------------
Additional Interest on R-Series Single
Payment Reserves:
R-76 3.5 Not Not 0
R-77 3.5 Applicable Applicable 3
R-78 3.5 10
R-79 3.5 13
R-80 3.5 12
R-81 3.5 6
R-82A 3.5 23
RP-Q (note a) 0
R-II 3.5 10
RP-2-84 3.5 36
RP-2-85 3.5 13
RP-2-86 3.5 2
RP-2-87 3.5 9
RP-2-88 3.5 8
Cash Reserve RP (note b) 0
IC-Flexible Savings RP (note d) 423
RP-Preferred Investors (note d) 36
Cash Reserve RP-3 mo. (note e) 32
IC-Flexible Savings RP Emp (note d) 13
IC-Future Value (note f) 24,580
IC-Future Value Emp (note f) 911
RP-Stock Market (note g) 313
RP-Market Strategy (note g) 74
D-1 (note a) 3
---------------
Total 26,530
---------------
Accrued for additional credits to be allowed
at next anniversaries:
RP-Stock Market 33
RP-Market Strategy 24
---------------
Total single payment 3,509,665
---------------
Paid-up certificates:
Series 15 and 20 3.25 7 83 76
" 15A and 22A 3.5 241 5,363 4,733
" I-76 3.5 529 2,800 2,046
------- -------- ---------------
Total 777 8,246 6,855
------- -------- ---------------
PAGE 29
Balance at beginning of period
-----------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
payment basis holders value reserves
-------------------- ------------ ------------- --------------
Additional credits and accrued interest thereon:
Series 15 and 20 2.5 Not Not 4
" 15A and 22A 3 Applicable Applicable 141
" I-76 3.5 182
--------------
Total 327
--------------
Accrued for additional credits to be allowed
at next anniversaries 13
------- -------- --------------
Total paid-up 876 9,003 7,691
------- -------- --------------
Optional settlement certificates:
Series 1, IST&G 3 12 4
Other series and conversions from Single
Payment certificates 2.5-3-3-3.5 6,574 86,546
Series R-76 thru R-82A 3 19 76
Series R-II & RP-2-84 thru 88 3.5 13 296
Reserve Plus Single-Payment (note a) 102 1,049
Reserve Plus Flex-Pay & IC-Q-Inst (note a) 19 74
Series R-Installment (note a) 38 209
Series R-Single-Payment (note a) 22 23
Add'l credits and accrued int. thereon 2.5-3 Not Not 10,507
Add'l credits and accrued int. thereon-IST&G 2.5-3 Applicable Applicable 0
Accrued for additional credits to be allowed
at next anniversaries 403
Accrued for additional credits to be allowed
at next anniversaries-R-76 thru R-82A & R-II 1
Accrued for additional credits to be allowed
at next anniversaries-IST&G 0
------- --------------
Total optional settlement 6,799 99,188
------- --------------
Not
Due to unlocated certificate holders Applicable 290
--------------
Total certificate reserves 3,536,659
==============
PAGE 30
Additions
-----------------------------------------
Charged
Yield Charged Reserve to other
to maturity to profit payments by accounts
on an annual and loss certificate (per
payment basis or income holders part 2)
-------------------- ------------ ------------ ---------------
Additional credits and accrued interest thereon:
Series 15 and 20 2.5 0 0 0
" 15A and 22A 3 4 0 13
" I-76 3.5 6 0 7
------- -------- ---------------
Total 10 0 20
------- -------- ---------------
Accrued for additional credits to be allowed
at next anniversaries 31 0 0
------- -------- ---------------
Total paid-up 283 0 912
------- -------- ---------------
Optional settlement certificates:
Series 1, IST&G 3 0 0 0
Other series and conversions from Single
Payment certificates 2.5-3-3-3.5 2,475 0 2,008
Series R-76 thru R-82A 3 2 0 1
Series R-II & RP-2-84 thru 88 3.5 10 0 2
Reserve Plus Single-Payment (note a) 38 0 0
Reserve Plus Flex-Pay & IC-Q-Inst (note a) 2 0 1
Series R-Installment (note a) 6 0 28
Series R-Single-Payment (note a) 1 0 0
Add'l credits and accrued int. thereon 2.5-3 277 0 782
Add'l credits and accrued int. thereon-IST&G 2.5-3 0 0 0
Accrued for additional credits to be allowed
at next anniversaries 939 0 0
Accrued for additional credits to be allowed
at next anniversaries-R-76 thru R-82A & R-II 4 0 0
Accrued for additional credits to be allowed
at next anniversaries-IST&G 0 0 0
------- -------- ---------------
Total optional settlement 3,754 0 2,822
------- -------- ---------------
Not
Due to unlocated certificate holders 0 Applicable 87
------- ----------- ---------------
Total certificate reserves 149,164 1,667,475 179,558
======= ========= ===============
Provision for certificate reserves and additional
credits, per Statement of Operations 156,462
Provision for reconversion applied against reserve recoveries from
terminations prior to maturity in Statement of Operations 0
Income (loss) from purchased and written call options included
in provision for certificate reserves in Statement of Operations (7,298)
-------
149,164
=======
PAGE 31
Deductions
-----------------------------------------
Credited
Yield Cash to other
to maturity surrenders accounts
on an annual prior to (per
payment basis Maturities maturity part 2)
-------------------- ----------- ------------- ---------------
Additional credits and accrued interest thereon:
Series 15 and 20 2.5 1 0 0
" 15A and 22A 3 21 10 6
" I-76 3.5 0 17 0
------- -------- ---------------
Total 22 27 6
------- -------- ---------------
Accrued for additional credits to be allowed
at next anniversaries 0 0 20
------- -------- ---------------
Total paid-up 338 862 505
------- -------- ---------------
Optional settlement certificates:
Series 1, IST&G 3 1 0 0
Other series and conversions from Single
Payment certificates 2.5-3-3-3.5 5,358 7,035 0
Series R-76 thru R-82A 3 16 9 0
Series R-II & RP-2-84 thru 88 3.5 45 0 0
Reserve Plus Single-Payment (note a) 47 211 0
Reserve Plus Flex-Pay & IC-Q-Inst (note a) 7 4 0
Series R-Installment (note a) 31 25 0
Series R-Single-Payment (note a) 8 3 0
Add'l credits and accrued int. thereon 2.5-3 833 914 278
Add'l credits and accrued int. thereon-IST&G 2.5-3 0 0 0
Accrued for additional credits to be allowed
at next anniversaries 10 0 785
Accrued for additional credits to be allowed
at next anniversaries-R-76 thru R-82A & R-II 0 0 3
Accrued for additional credits to be allowed
at next anniversaries-IST&G 0 0 0
------- -------- ---------------
Total optional settlement 6,356 8,201 1,066
------- -------- ---------------
Not
Due to unlocated certificate holders Applicable 5 111
----------- -------- ---------------
Total certificate reserves 64,920 1,457,232 179,645
======= ========= ===============
PAGE 32
Balance at close of period
-----------------------------------------
Number
of
Yield accounts Amount
to maturity with of Amount
on an annual security maturity of
payment basis holders value reserves
-------------------- ------------ ------------ ---------------
Additional credits and accrued interest thereon:
Series 15 and 20 2.5 Not Not 3
" 15A and 22A 3 Applicable Applicable 121
" I-76 3.5 178
---------------
Total 302
---------------
Accrued for additional credits to be allowed
at next anniversaries 24
------- -------- ---------------
Total paid-up 777 8,246 7,181
------- -------- ---------------
Optional settlement certificates:
Series 1, IST&G 3 12 3
Other series and conversions from Single
Payment certificates 2.5-3-3-3.5 5,717 78,636
Series R-76 thru R-82A 3 15 54
Series R-II & RP-2-84 thru 88 3.5 11 263
Reserve Plus Single-Payment (note a) 81 829
Reserve Plus Flex-Pay & IC-Q-Inst (note a) 14 66
Series R-Installment (note a) 32 187
Series R-Single-Payment (note a) 17 13
Add'l credits and accrued int. thereon 2.5-3 Not Not 9,541
Add'l credits and accrued int. thereon-IST&G 2.5-3 Applicable Applicable 0
Accrued for additional credits to be allowed
at next anniversaries 547
Accrued for additional credits to be allowed
at next anniversaries-R-76 thru R-82A & R-II 2
Accrued for additional credits to be allowed
at next anniversaries-IST&G 0
------- ---------------
Total optional settlement 5,899 90,141
------- ---------------
Not
Due to unlocated certificate holders Applicable 261
---------------
Total certificate reserves 3,831,059
===============
PAGE 33
Notes:
(a) On these series of certificates, there is no minimum rate of accrual of
interest. Interest is declared for a quarter or quarters by American
Express Certificate Company (AECC) and credited to the reserves maintained
at the end of each calendar quarter.
(b) On these series of certificates, there is no minimum rate of accrual of
interest. Interest is declared for a quarter or quarters by AECC and
credited to the reserves maintained or paid in cash at the end of each
calendar month.
(c) On these series of certificates, there is no minimum rate of accrual of
interest. Interest is declared by AECC for the first four certificate
quarters, then annually thereafter, and credited to the reserves maintained
at the end of each certificate year.
(d) On this series of certificates, there is no minimum rate of accrual of
interest. Interest is declared by AECC for the term selected and credited
to the reserves maintained or paid in cash at the end of each certificate
month.
(e) On this series of certificates, there is no minimum rate of accrual of
interest. Interest is declared by AECC for a three-month term and credited
to the reserves maintained or paid in cash at the end of each certificate
month.
(f) On this series of certificates, there is no minimum rate of accrual of
interest. Interest is declared by AECC for a four, five, six, seven, eight,
nine or ten year maturity and credited to the reserves maintained at
maturity.
(g) On this series of certificates, the certificate holder may elect to receive
minimum interest only or minimum interest plus participation interest.
Minimum interest is declared by AECC for a twelve-month term and is
credited to the the reserves maintained at the end of each certificate
term. Participation interest is determined at the end of each certificate
term by multiplying the market participation rate in effect at the
beginning of the certificate term for each certificate times any total
percentage appreciation in a broad stock market indicator subject to
specified maximums. Participation interest is credited to the reserves
maintained at the end of each certificate term.
PAGE 34
Part 2 - Description of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Year ended December 31, 2000
($ in thousands)
Additions to reserves charged to other accounts
-------------------------------------------------------------------
Transfers of
maturities to
Reconversions extended
of paid-up maturities-
certificate charged to
charged Charged reserves to
to paid-up to mature, addi-
reserves and advance tional credits/
reserve for payments interest and
reconversions reserve advance payments Total
-------------- ----------- ------------------ -----------------
Reserves to mature installment
certificates:
Series 15, including extended
maturities 0 0 0 0
Series 20, including extended
maturities 0 0 0 0
Series 15A, including extended
maturities 0 0 0 0
Series 22A, including extended
maturities 39 113 272 424
Series I-76 29 13 0 42
Series Reserve Plus Flexible Payment 0 0 22 22
Series IC-Q-Installment 0 0 6 6
Series IC-Q-Ins 0 0 263 263
Series IC-Q-Ins Emp 0 0 3 3
Series IC-I 0 0 6,953 6,953
Series IC-I-Emp 0 0 52 52
Series Inst 0 0 463 463
Series Inst-Emp 0 0 2 2
Series RP-Q-Installment 0 0 30 30
Series RP-Q-Flexible Payment 0 0 2 2
Series RP-Q-Ins 0 0 7 7
Series RP-Q-Ins Emp 0 0 0 0
Series RP-I 0 0 66 66
Series RP-I Emp 0 0 4 4
--------- ------- ------------ -----
Total 68 126 8,145 8,339
========= ======= ============ =====
PAGE 35
Part 2 - Description of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Year ended December 31, 2000
($ in thousands)
Deductions from reserves credited to other accounts
- -----------------------------------------------------------------------------
Conversions
to optional Maturities
settlement transferred
Conversions certificates- to extended
to paid-up credited maturities-
certificates- to optional credited to
credited settlement reserves to
to paid-up reserves and mature-
surrender surrender extended
income income maturities Total
- ---------------------------- ------------ ----------- ------------
0 0 0 0
0 14 0 14
0 0 0 0
485 724 272 1,481
240 0 0 240
0 0 0 0
0 0 0 0
0 1 0 1
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 28 0 28
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
- -------------------- --------- ------- ------------
725 767 272 1,764
==================== ========= ======= ============
PAGE 36
Part 2 - Description of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Year ended December 31, 2000
($ in thousands)
Additions to reserves charged to other accounts
---------------------------------------------------------------
Additions Additions to
to advance reserves to
Reconversions payments- mature-extended
of paid-up charged to maturities
Payments made in advance certificates- default charged to
of current certificate charged to interest reserves to
year requirements and paid-up on late mature from
accrued interest thereon: reserves payments maturity Total
------------ ------------ --------------- -----
Series 15, including extended
maturities 0 0 0 0
Series 20, including extended
maturities 0 0 0 0
Series 15A, including extended
maturities 0 0 0 0
Series 22A, including extended
maturities 0 0 27 27
Series I-76 1 1 0 2
Series Reserve Plus Flexible Payment 0 0 0 0
Series IC-Q Installment 0 0 0 0
Series IC-Q Ins 0 0 0 0
Series IC-Q Ins Emp 0 0 0 0
Series IC-I 0 0 0 0
Series IC-I Emp 0 0 0 0
Series RP-Q Installment 0 0 0 0
Series RP-Q Flexible Payment 0 0 0 0
Series RP-Q Ins 0 0 0 0
Series RP-Q Ins Emp 0 0 0 0
Series RP-I 0 0 0 0
Series RP-I Emp 0 0 0 0
--------- ------- ------------ -----
Total 1 1 27 29
========= ======= ============ =====
PAGE 37
Part 2 - Description of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Year ended December 31, 2000
($ in thousands)
Deductions from reserves credited to other accounts
- -----------------------------------------------------------------------------------------------------------------------------------
Maturities
Conversions transferred
Applied to to optional to extended
certificates- settlement maturities- Conversions
credited to certificates- credited to to paid-up
reserves to credited reserves certificates-
mature, to optional to mature- credited to
loading settlement extended paid-up
and insurance reserves maturities reserves Total
- ----------------------------- ----------- ------------ ------------ -----
0 0 0 0 0
0 1 0 0 1
0 0 0 0 0
113 81 27 1 222
13 0 0 0 13
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
- -------------------- --------- ------- ------------ -----
126 82 27 1 236
==================== ========= ======= ============ =====
PAGE 38
Certificate Reserves
($ in thousands)
Part 2 - Descriptions of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Additional credits on installment certificates and
accrued interest thereon:
Other additions represent:
Transfers from accruals for additional credits to be allowed at next
anniversaries $ 79
Reconversions of paid-up certificates-charged to paid-up reserves 16
Transfers from maturities to extended maturities 50
$ 145
Other deductions represent:
Transfers to reserves on a quarterly basis for Reserve Plus Flexible-
Payment, IC-Q-Installment and R-Flexible-Payment $ 7,881
Conversions to optional settlement certificates-credited to optional
settlement reserves 200
Conversions to paid-up certificates-credited to paid-up reserves 161
Transfers to extended maturities at maturity 50
$ 8,292
Accrual for additional credits to be allowed on installment
certificates at next anniversaries:
Other deductions represent:
Transfers to reserves for additional credits on installment certificates $ 79
Reserve for death and disability refund options:
Other deductions represent:
Payments, in excess of installment reserves, made to certificate holders
who exercised the death and disability refund options. $ 0
Reserve for reconversions of paid-up certificates:
The amount shown as charged to profit and loss has been deducted from
reserve recoveries in the accompanying Statement of Operations $ 0
Other deductions represent:
Amounts credited to installment certificate reserves to mature, on
reconversions of paid-up certificates. $ 0
Paid-up certificates:
Other additions represent:
Conversions from installment certificates (charged to installment reserves
less surrender charges) $ 892
Transfers from accrual for additional credits to be allowed at next
anniversaries 20
$ 912
Other deductions represent:
Transfers credited to installment reserves on reconversions to installment
certificates $ 86
Transfers for accrual for additional credits and accrued interest thereon 20
Transfers to settlement options 399
$ 505
PAGE 39
Certificate Reserves
($ in thousands)
Part 2 - Descriptions of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Default interest on installment certificates:
Other additions represent:
Reconversions of paid-up certificates charged to paid-up reserves $ 1
Other deductions represent:
Conversions to paid-up certificates - credited to paid-up reserves $ 0
Transfers to advance payments as late payments are credited to
certificates 5
$ 5
Optional settlement certificates:
Other additions represent:
Transfers from installment certificate reserves (less surrender charges),
single-payment and Series D certificate reserves upon election of
optional settlement privileges $ 1,641
Transfers from paid-up certificate reserves 399
Transfers from accruals for additional credits to be allowed at next
anniversaries 782
$ 2,822
Other deductions represent:
Transfers to reserve for additional credits and accrued interest thereon $ 785
Transfers to optional settlement reserves 281
$ 1,066
Single-Payment certificates:
Other additions represent:
Transfers from accruals for additional credits to be allowed at next
anniversaries $ 192
Transfers from accruals on a quarterly basis on:
Reserve Plus Single-Payment 213
Cash Reserve Single-Payment 7
Flexible Savings 24,509
Flexible Savings-Emp 699
Preferred Investors 8,412
Investors 54,057
Special Deposits 7,506
Cash Reserve 90
Cash Reserve-3mo 6,238
Future Value 0
Stock Market 31,415
Market Strategy 11,800
AEBI Stock Market 788
R82-B 58
Cash Reserve-RP 1
Cash Reserve-RP-3mo 868
Flexible Saving-RP 7,332
Flexible Savings-RP-Emp 339
Preferred Investors-RP 602
Stock Market-RP 6,830
Market Strategy-RP 3,138
Transfers from accruals at anniversaries maintained in a separate
reserve account. 2,129
$ 167,223
PAGE 40
Certificate Reserves
($ in thousands)
Part 2 - Descriptions of Additions to Reserves Charged to Other
Accounts and Deductions from Reserves Credited to Other Accounts
Single-Payment certificates continued:
Other deductions represent:
Transfers to optional settlement reserves:
Single-Payment $ 15,250
R Single-Payment 0
Transfers to reserves for additional credits and accrued interest thereon 2,129
Transfers to a separate reserve account from the accrual account 192
Transfers to reserves on a quarterly basis:
Reserve Plus Single-Payment 213
Cash Reserve Single-Payment 7
Flexible Savings 24,508
Flexible Savings-Emp 699
Preferred Investors 8,412
Investors 54,057
Special Deposits 7,506
Cash Reserve 90
Cash Reserve-3mo 6,238
Stock Market 31,415
AEBI Stock Market 787
R82-B 58
Cash Reserve-RP 1
Cash Reserve-RP-3mo 868
Flexible Saving-RP 7,332
Flexible Savings-RP-Emp 339
Preferred Investors-RP 602
Stock Market-RP 6,831
Transfers to Federal tax withholding 52
$ 167,586
Due to unlocated certificate holders:
Other additions represent:
Amounts equivalent to payments due certificate holders who could
not be located $ 87
Other deductions represent:
Payments to certificate holders credited to cash $ 111
PAGE 41
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 2000
Deductions from
Reserves
------------------------
Number of Cash
Accounts with Amount of Amount of Surrenders
Certificate Months Certificate Holders Maturity Value Reserves Prior to
Series Paid December 31, December 31, December 31, Maturity Other
- ----------- ----------- ----------------------- ----------------------- ----------------------- ----------- -----------
1999 2000 1999 2000 1999 2000
----------- ---------- ---------- ----------- ---------- ----------
20, including 253-264 1 1 14 14 8 9 0 0
extended 265-276 0 0 0 0 0 0 0 0
maturities 277-288 0 0 0 0 0 0 0 0
289-300 0 0 0 0 0 0 0 0
301-312 0 0 0 0 0 0 0 0
313-324 0 0 0 0 0 0 0 0
325-336 0 0 0 0 0 0 0 0
337-348 0 0 0 0 0 0 0 0
349-360 (a) 1 0 14 0 14 0 0 14
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
Total 2 1 28 14 22 9 0 14
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
15A,including 229-240 1 0 7 0 6 0 0 0
extended 241-252 1 1 10 7 11 7 0 0
maturities ----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
Total 2 1 17 7 17 7 0 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
22A,including 73-84 1 1 19 19 4 4 0 0
extended 85-96 0 0 0 0 0 0 0 0
maturities 97-108 0 0 0 0 0 0 0 0
109-120 1 0 13 0 5 0 0 0
121-132 0 1 0 13 0 5 0 0
133-144 3 2 53 38 22 16 0 0
145-156 2 1 56 15 27 7 0 0
157-168 0 2 0 56 0 30 0 0
169-180 3 0 75 0 44 0 0 0
181-192 1 2 19 56 12 36 12 0
193-204 0 1 0 19 0 12 0 0
205-216 2 1 56 19 41 14 0 0
217-228 4 1 113 38 90 30 15 0
229-240 8 4 257 109 219 94 94 0
PAGE 42
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 2000
Deductions from
Reserves
------------------------
Number of Cash
Accounts with Amount of Amount of Surrenders
Certificate Months Certificate Holders Maturity Value Reserves Prior to
Series Paid December 31, December 31, December 31, Maturity Other
- ----------- ----------- ----------------------- ----------------------- ----------------------- ----------- -----------
1999 2000 1999 2000 1999 2000
----------- ---------- ---------- ----------- ---------- ----------
241-252 9 6 171 148 156 136 0 34
253-264 (a) 16 7 353 114 346 112 11 305
265-276 2 7 390 438 235 265 0 19
277-288 18 4 581 461 373 296 41 41
289-300 90 15 2,442 412 1,642 283 73 53
301-312 94 78 2,347 2,075 1,674 1,475 86 238
313-324 106 80 2,605 1,991 1,978 1,500 151 103
325-336 85 92 1,848 2,244 1,472 1,797 83 118
337-348 85 76 1,627 1,669 1,364 1,402 74 43
349-360 71 76 1,400 1,500 1,237 1,325 71 23
361-372 62 64 864 1,250 804 1,163 85 18
373-384 55 54 831 753 814 736 109 486
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
Total 718 575 16,120 13,437 12,559 10,738 905 1,481
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
I-76 145-156 1 0 37 0 11 0 0 0
157-168 0 1 0 37 0 12 0 0
169-180 2 0 40 0 14 0 0 0
181-192 1 2 25 40 9 15 0 0
193-204 1 1 12 25 5 10 5 0
205-216 18 0 501 0 232 0 29 14
217-228 58 15 1,381 363 675 181 102 63
229-240 81 43 2,155 1,086 1,136 571 155 50
241-252 79 67 1,704 1,716 960 970 162 48
253-264 99 67 1,901 1,405 1,144 850 118 26
265-276 85 82 2,024 1,584 1,309 1,018 179 20
277-288 49 72 1,067 1,670 725 1,149 139 8
289-300 0 43 0 953 0 689 31 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
Total 474 393 10,847 8,879 6,220 5,465 920 229
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
PAGE 43
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 2000
Deductions from
Reserves
------------------------
Number of Cash
Accounts with Amount of Amount of Surrenders
Certificate Months Certificate Holders Maturity Value Reserves Prior to
Series Paid December 31, December 31, December 31, Maturity Other
- ----------- ----------- ----------------------- ----------------------- ----------------------- ----------- -----------
1999 2000 1999 2000 1999 2000
----------- ---------- ---------- ----------- ---------- ----------
Reserve Plus 181-192 31 0 294 0 141 0 0 0
Flexible 193-204 79 26 687 258 339 120 50 0
Payment 205-216 71 65 685 583 298 276 115 0
217-228 0 58 0 520 0 282 75 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
Total 181 149 1,666 1,361 778 678 240 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
IC-Q- 157-168 8 0 84 0 27 0 0 0
Installment 169-180 34 4 454 57 140 9 21 0
181-192 27 24 232 352 134 81 45 0
193-204 0 20 0 163 0 78 59 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
Total 69 48 770 572 301 168 125 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
IC-Q-Ins 73-84 1 0 12 0 9 0 0 0
85-96 495 1 5,989 12 2,698 11 0 0
97-108 1,060 350 12,651 4,191 5,507 1,866 1,182 0
109-120 772 735 8,516 8,219 4,000 3,755 2,231 0
121-132 54 50 730 523 305 304 964 1
133-144 75 40 916 534 424 208 114 0
145-156 32 63 330 747 117 379 92 0
157-168 13 24 113 228 40 94 41 0
169-180 0 10 0 87 0 23 26 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
Total 2,502 1,273 29,257 14,541 13,100 6,640 4,650 1
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
IC-Q-Ins Emp 85-96 4 0 30 0 20 0 0 0
97-108 5 3 54 18 42 9 15 0
109-120 4 4 45 42 33 34 12 0
121-132 0 1 0 6 0 1 0 0
133-144 1 0 17 0 10 0 0 0
145-156 0 1 0 17 0 13 0 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
Total 14 9 146 83 105 57 27 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
PAGE 44
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 2000
Deductions from
Reserves
------------------------
Number of Cash
Accounts with Amount of Amount of Surrenders
Certificate Months Certificate Holders Maturity Value Reserves Prior to
Series Paid December 31, December 31, December 31, Maturity Other
- ----------- ----------- ----------------------- ----------------------- ----------------------- ----------- -----------
1999 2000 1999 2000 1999 2000
----------- ---------- ---------- ----------- ---------- ----------
IC-I 1-12 9 4 88 36 16 2 1 0
13-24 4 8 92 82 19 25 1 0
25-36 3,235 3 57,339 80 13,678 26 1 0
37-48 7,423 2,592 127,483 44,349 38,241 13,794 2,878 0
49-60 8,936 6,023 151,686 101,537 58,425 37,229 6,469 0
61-72 7,878 7,219 139,335 122,773 59,239 53,560 10,096 0
73-84 4,166 4,581 65,883 77,194 28,834 33,770 27,454 0
85-96 1,825 2,889 27,198 44,279 12,748 20,332 9,331 0
97-108 0 1,374 0 20,171 0 10,387 2,791 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
Total 33,476 24,693 569,104 410,501 211,200 169,125 59,022 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
IC-I-Emp 25-36 17 0 177 0 61 0 0 0
37-48 45 13 806 138 277 72 7 0
49-60 49 41 529 771 244 309 17 0
61-72 52 42 688 420 377 236 39 0
73-84 17 31 246 384 105 226 191 0
85-96 10 15 213 210 175 111 9 0
97-108 0 8 0 183 0 169 16 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
Total 190 150 2,659 2,106 1,239 1,123 279 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
Inst 1-12 2,742 1,859 0 0 2,241 1,672 135 0
13-24 2,893 2,003 0 0 5,767 4,065 564 0
25-36 1,859 2,328 0 0 5,413 7,243 1,168 0
37-48 0 1,495 0 0 0 5,836 1,051 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
Total 7,494 7,685 0 0 13,421 18,816 2,918 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
Inst-Emp 1-12 17 16 0 0 7 13 1 0
13-24 13 10 0 0 31 11 4 0
25-36 5 11 0 0 11 36 4 0
37-48 0 5 0 0 0 17 0 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
Total 35 42 0 0 49 77 9 0
----------- ---------- ---------- ----------- ---------- ---------- ----------- -----------
PAGE 45
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 2000
Deductions from
Reserves
------------------------
Number of Cash
Accounts with Amount of Amount of Surrenders
Certificate Months Certificate Holders Maturity Value Reserves Prior to
Series Paid December 31, December 31, December 31, Maturity Other
- ----------- ----------- ----------------------- ----------------------- ----------------------- ----------- -----------
1999 2000 1999 2000 1999 2000
------ ------ ------ ------ ------ ------
R Flexible 169-180 36 0 564 0 372 0 0 0
Payment 181-192 9 27 152 382 39 216 16 28
193-204 36 8 501 135 283 34 1 0
205-216 37 35 404 481 427 264 17 0
217-228 0 33 0 353 0 392 44 0
------ ------ ------ ------ ------ ------ ------ ------
Total 118 103 1,621 1,351 1,121 906 78 28
------ ------ ------ ------ ------ ------ ------ ------
RP-Q- 157-168 7 0 90 0 47 0 0 0
Installment 169-180 5 7 64 91 26 48 0 0
181-192 0 2 0 18 0 12 8 0
------ ------ ------ ------ ------ ------ ------ ------
Total 12 9 154 109 73 60 8 0
------ ------ ------ ------ ------ ------ ------ ------
RP-Q-Ins 85-96 9 0 94 0 80 0 0 0
97-108 15 3 241 31 90 7 75 0
109-120 28 8 566 187 220 39 50 0
121-132 2 4 18 260 5 66 19 0
133-144 0 2 0 18 0 5 0 0
145-156 1 0 12 0 6 0 0 0
157-168 0 1 0 12 0 7 0 0
------ ------ ------ ------ ------ ------ ------ ------
Total 55 18 931 508 401 124 144 0
------ ------ ------ ------ ------ ------ ------ ------
RP-Q-Ins Emp 97-108 1 0 6 0 7 0 0 0
109-120 0 1 0 6 0 8 0 0
------ ------ ------ ------ ------ ------ ------ ------
Total 1 1 6 6 7 8 0 0
------ ------ ------ ------ ------ ------ ------ ------
PAGE 46
Part 3 - Information Regarding Installment Certificates
Classified by Age Groupings
($ in thousands)
Year ended December 31, 2000
Deductions from
Reserves
------------------------
Number of Cash
Accounts with Amount of Amount of Surrenders
Certificate Months Certificate Holders Maturity Value Reserves Prior to
Series Paid December 31, December 31, December 31, Maturity Other
- ----------- ----------- ----------------------- ----------------------- ----------------------- ----------- -----------
1999 2000 1999 2000 1999 2000
------ ------ ------ ------ ------ ------
RP-I 25-36 27 0 1,463 0 192 0 0 0
37-48 35 23 996 1,386 331 262 8 0
49-60 49 26 1,540 765 625 301 105 0
61-72 39 28 1,024 744 364 283 438 0
73-84 29 26 811 567 472 216 139 0
85-96 26 21 435 458 195 271 230 0
97-108 0 18 0 324 0 120 84 0
------ ------ ------ ------ ------ ------ ------ ------
Total 205 142 6,269 4,244 2,179 1,453 1,004 0
------ ------ ------ ------ ------ ------ ------ ------
Inst-R 1-12 30 14 0 0 89 50 2 0
13-24 24 21 0 0 24 67 9 0
25-36 5 19 0 0 0 56 12 0
37-48 0 4 0 0 0 10 2 0
------ ------ ------ ------ ------ ------ ------ ------
Total 59 58 0 0 113 183 25 0
------ ------ ------ ------ ------ ------ ------ ------
Inst-R-E 1-12 0 0 0 0 0 0 0 0
13-24 3 0 0 0 3 0 0 0
25-36 0 2 0 0 0 4 0 0
------ ------ ------ ------ ------ ------ ------ ------
Total 3 2 0 0 3 4 0 0
------ ------ ------ ------ ------ ------ ------ ------
Total All Series 45,610 35,352 639,595 457,719 262,908 215,641 70,354 1,753
======== ======== ======== ======== ======== ======== ======== ========
(a) Includes accounts on which all payments necessary to mature have been made,
but additional time must elapse before the certificate maturity year is
completed.
PAGE 47
Part 4 - Amounts Periodically Credited to Certificate Holders' Accounts
to Accumulate the Maturity Amount of Installment Certificates.
Information as to (1) amounts periodically credited to each class of security
holders' accounts from installment payments and (2) such other amounts
periodically credited to accumulate the maturity amount of the certificate (on a
$1,000 face-amount certificate basis for the term of the certificate), is filed
in Part 4 of Schedule IX as part of Post- effective Amendment No. 9 to
Registration Statement No. 2-17681, Post effective Amendment No. 1 to
Registration Statement No. 2-23772 and Post-effective Amendment No. 1 to
Registration Statement No. 2-258081 and is incorporated herein by reference.
AMERICAN EXPRESS CERTIFICATE COMPANY SCHEDULE VII
(formerly IDS Certificate Company)
Valuation and Qualifying Accounts
Years ended December 31, 2000, 1999 and 1998
($ thousands)
Year ended December 31, 2000
- -------------------------------------------------------------------------------------------------------------------------
Additions
------------------------
Reserves Balance Charged Balance
deducted from at to costs Deductions at
assets to beginning and from end
which they apply of period expenses Other reserves of period
- -------------------------------- --------------- ------------ ------- --------------- ---------------
Writedown for losses:
Securities $2,141 $11,413 $0 $0 $13,554
Allowance for losses:
Conventional first
mortgage loans 511 233 0 0 744
Year ended December 31, 1999
- -------------------------------------------------------------------------------------------------------------------------
Additions
------------------------
Reserves Balance Charged Balance
deducted from at to costs Deductions at
assets to beginning and from end
which they apply of period expenses Other reserves of period
- -------------------------------- --------------- ------------ ------- --------------- ---------------
Writedown for losses:
Securities $0 $2,141 $0 $0 $2,141
Allowance for losses:
Conventional first
mortgage loans 611 0 0 100 (a) 511
Year ended December 31, 1998
- -------------------------------------------------------------------------------------------------------------------------
Additions
------------------------
Reserves Balance Charged Balance
deducted from at to costs Deductions at
assets to beginning and from end
which they apply of period expenses Other reserves of period
- -------------------------------- --------------- ------------ ------- --------------- ---------------
Writedown for losses:
Securities $605 $0 $0 $605 (b) $0
Allowance for losses:
Conventional first
mortgage loans 611 0 0 0 611
a) Applicable to adjustment of the adequacy of the reserve for mortgage loan
losses.
b) Applicable to reversal on securities sold.