Item 1. BUSINESS
Fidelity Leasing Income Fund IV, L.P. (the "Fund"), a Delaware limited partnership, was organized in 1986 and acquires computer equipment, including printers, tape and disk storage devices, data communications equipment, com- puter terminals, technical workstations, networking equipment, as well as other electronic equipment that is leased to third parties on a short-term basis. The Fund's principal objective is to generate leasing revenues for distri- bution. The Fund manages the equipment, releasing or disposing of equipment as it comes off lease in order to achieve its principal objective. The Fund does not borrow funds to purchase equipment.
The Fund generally acquires equipment subject to a lease. Purchases of equipment for lease are typically made through equipment leasing brokers, under a sale-leaseback arrangement directly from lessees owning equipment, from the manufacturer either pursuant to a purchase agreement relating to significant quantities of equipment or on an ad hoc basis to meet the needs of a particular lessee.
The equipment leasing industry is highly competitive. The Fund competes with leasing companies, equipment manufacturers and distributors, and entities similar to the Fund (including similar programs sponsored by the General Partner), some of which have greater financial resources than the Fund. Other leasing companies and equipment manufacturers and distributors may be in a position to offer equipment to prospective lessees on financial terms which are more favorable than those which the Fund can offer. They may also be in a position to offer trade-in-privileges, maintenance contracts and other services which the Fund may not be able to offer. Equipment manufacturers and distributors may offer to sell equipment on terms and conditions (such as liberal financing terms and exchange privileges) which will afford benefits to the purchaser similar to those obtained through leases. As a result of the advantages which certain of its competitors may have, the Fund may find it necessary to lease its equipment on a less favorable basis than certain of its competitors.
A brief description of the types of equipment in which the Fund has invested as of December 31, 2000, together with information concerning the users of such equipment is contained in Item 2, following.
The Fund does not have any employees. All persons who work on the Fund are employees of the General Partner.
Item 2.
Item 2. PROPERTIES
The following schedules detail the type, aggregate purchase price and percentage of the various types of equipment leased by the Fund under the operating and direct financing lease methods as of December 31, 2000:
Operating Leases: Purchase Price Percentage of Type of Equipment of Equipment Total Equipment
Tape Storage Systems $ 966,483 41.30% Technical Workstations and Terminals 658,651 28.14 Communication Controllers 276,653 11.82 PCB Assembly Equipment 271,215 11.59 Electron Microscopes 139,211 5.95 Other 28,005 1.20 __________ ______ Totals $2,340,218 100.00% ========== ======
Direct Financing Leases: Purchase Price Percentage of Type of Equipment of Equipment Total Equipment
PCB Assembly Equipment $ 561,649 44.05% Tape Storage Systems 470,768 36.93 Technical Workstations and Terminals 236,449 18.55 Other 6,034 0.47 __________ ______ Totals $1,274,900 100.00% ========== ======
The following schedules detail the type of business, aggregate purchase price and percentage of equipment usage by industrial classification for equipment leased by the Fund under the operating and direct financing methods as of December 31, 2000:
Operating Leases: Purchase Price Percentage of Type of Business of Equipment Total Equipment
Diversified Financial/Banking/Insurance $ 912,469 38.99% Computer/Data Processing 740,670 31.65 Manufacturing/Refining 687,079 29.36 __________ ______ Totals $2,340,218 100.00% ========== ======
Item 2. PROPERTIES (Continued)
Direct Financing Leases: Purchase Price Percentage of Type of Business of Equipment Total Equipment
Manufacturing/Refining $ 565,964 44.39% Computer/Data Processing 330,407 25.92 Diversified Financial/Banking/Insurance 327,031 25.65 Education 34,736 2.72 Retailing/Consumer Goods 16,762 1.32 __________ ______ Totals $1,274,900 100.00% ========== ======
Average Initial Term of Leases (in months): 32
Item 3.
Item 3. LEGAL PROCEEDINGS
Not applicable.
Item 4.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
PART II
Item 5.
Item 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
(a) The Fund's limited partnership units are not publicly traded. There is no market for the Fund's limited partnership units and it is unlikely that any will develop.
(b) Number of Equity Security Holders:
Number of Partners Title of Class as of December 31, 2000
Limited Partnership Interests 1,562 General Partnership Interest 1
Item 7.
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
The Fund had revenues of $626,847, $882,124, and $1,312,608 for the years ended December 31, 2000, 1999 and 1998, respectively. The decrease in revenues between 2000, 1999 and 1998 was partially caused by the decrease in rental income generated from equipment under operating leases. Rental income from the leasing of equipment accounted for 84%, 72% and 91% of total income in 2000, 1999 and 1998, respectively. In 2000, rental income decreased by approximately $109,000 because of equipment that came off lease and was re- leased at lower rental rates or was sold. In 1999, rental income decreased by approximately $444,000 because of equipment that came off lease and was released at lower rental rates or was sold. This decrease, however, was miti- gated by approximately $96,000 of rental income generated from equipment under an operating lease purchased in 1999 as well as rental income from a 1998 equipment purchase for which a full year of rental income was earned in 1999 and only a partial year was earned in 1998. Additionally, the Fund entered into a transaction in which it collected the remaining rents owed of approxi- mately $202,000 for one of its leases in the fourth quarter of 1998 which also accounted for the total decrease in rental income in 1999. The Fund recorded a net gain on sale of equipment of $300 for the twelve months ended Decem- ber 31, 2000 compared to $119,616 for the twelve months ended December 31, 1999 and $24,727 for the twelve months ended December 31, 1998. The fluctuation in this account also contributed to the overall decrease in revenues in 2000 and mitigated the amount of decrease in total revenues in 1999. Furthermore, the change in earned income on direct financing leases contributed to the decrease in total revenues in 2000 and reduced the decrease in total revenues in 1999. This account decreased in 2000 because of a lease that was sold in July 1999. This account increased in 1999 because the Fund invested in $1,127,000 of di- rect financing leases during the last six months of 1998 that generated a full year of earned income in 1999 and only a partial year of earned income in 1998.
Expenses were $410,618, $490,574 and $1,046,464 for the years ended December 31, 2000, 1999 and 1998, respectively. Depreciation expense comprised 71%, 67% and 59% of total expenses in 2000, 1999 and 1998, respectively. The decrease in depreciation expense partially accounted for the overall decrease in expenses in 2000 and 1999. Depreciation expense decreased during these years because of equipment that terminated and was sold. Additionally, the decrease in write-down of equipment to net realizable value contributed to the decrease in total expenses in 2000 and in 1999. Currently, the Fund's practice is to review the recoverability of its undepreciated costs of rental equipment quarterly. The Fund's policy, as part of this review, is to analyze such factors as releasing of equipment, technological developments and information provided in third party publications. In 2000, there was no write-down of equipment to net realizable value. In 1999 and 1998, approximately $17,000 and $251,000, respectively, was charged to write-down of equipment to net realizable value. The decrease in this account for the twelve months ended December 31, 2000 and 1999 contributed to the overall decrease in expenses in 2000 and 1999. In accordance with accounting principles generally accepted in the United States of America, the Fund writes down its rental equipment to its estimated net realizable value when the amounts are reasonably estimated and only recognizes gains, if any, upon actual sales of its equipment. Any future losses are dependent upon unanticipated technological developments affecting
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
Results of Operations (Continued)
the types of equipment in the portfolio in subsequent years. Furthermore, the decrease in general and administrative expense to related party contributed to the decrease in overall expenses in 2000 and 1999. The decrease in this account resulted from a decrease in expenses charged by the General Partner or its parent company for services and materials provided to the Fund during 2000 and 1999.
The Fund's net income was $216,229, $391,550 and $266,144 for the years ended December 31, 2000, 1999 and 1998, respectively. The earnings per equiv- alent limited partnership unit, after earnings allocated to the General Partner, were $20.41, $37.08 and $25.51 for the years ended December 31, 2000, 1999 and 1998, respectively. The weighted average number of equivalent limited partnership units outstanding were 9,911, 10,183 and 10,023 for 2000, 1999 and 1998, respectively.
The Fund generated cash from operations of $506,499, $616,169 and $1,106,229 for the purpose of determining cash available for distribution for the years ended December 31, 2000, 1999 and 1998, respectively. The Fund distributed $300,000, $300,000 and $225,000 of those amounts during the period April 1 through December 31, 2000, 1999 and 1998, respectively, and during the first quarter of 2001, 2000 and 1999, the Fund distributed $100,000, $100,000 and $75,000 of those amounts, respectively. The Fund also paid a cash distri- bution of $100,000 to partners during the first quarter of 1998 for the last quarter of the previous year. For financial statement purposes, the Fund records cash distributions to partners on a cash basis in the period in which they are paid.
Analysis of Financial Condition
The Fund is currently in the process of dissolution. As provided in the Restated Limited Partnership Agreement, the assets of the Fund shall be liqui- dated as promptly as is consistent with obtaining their fair value. During this time, the Fund will continue to look for opportunities to purchase equip- ment for lease or invest in direct financing leases for terms consistent with the plan of dissolution. During the years ended December 31, 2000, 1999 and 1998, the Fund purchased equipment of $276,971, $380,365 and $559,110, respec- tively. The Fund also invested $425,941 and $1,127,157 in direct financing leases during the twelve months ended December 31, 2000 and 1998, respectively.
The cash position of the Fund is reviewed daily and cash is invested on a short-term basis.
The Fund's cash from operations is expected to continue to be adequate to cover all operating expenses and contingencies during the next fiscal year.
Item 8.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The response to this Item is submitted as a separate section of this report commencing on page.
Item 9.
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
Not applicable.
PART III
Item 10.
Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
F.L. Partnership Management, Inc. (FLPMI) is a wholly owned subsidiary of Resource Leasing, Inc., a wholly owned subsidiary of Resource America, Inc. (Resource America). The Directors and Executive Officers of FLPMI are:
FREDDIE M. KOTEK, age 45, Chairman of the Board of Directors, President, and Chief Executive Officer of FLPMI since September 1995 and Senior Vice President of Resource America since 1995. President of Resource Leasing, Inc. since September 1995. President of Resource Properties, Inc. (a wholly owned subsidiary of Resource America) since 2000. Executive Vice President of Resource Properties, Inc. from 1993 to 2000.
MICHAEL L. STAINES, age 51, Director and Secretary of FLPMI since September 1995. Director of Resource America from 1989 to 2000 and Senior Vice President of Resource America since 1989. Chief Operating Officer, Secretary and Managing Board Member of Atlas Pipeline Partners G.P., LLC since its formation in 1999. President, Secretary and a direc- tor of Resource Energy, Inc. (a wholly owned subsidiary of Resource America) since 1993.
SCOTT F. SCHAEFFER, age 38, Director of FLPMI since September 1995. President of RAIT Investment Trust (a publicly traded real estate invest- ment trust) since October 2000. Vice Chairman of the Board of Resource America from 1998 to September 2000 and Executive Vice President of Re- source America from 1997 to 1998. Prior thereto, Senior Vice President of Resource America since 1995. President of Resource Properties, Inc. (a wholly owned subsidiary of Resource America) from 1992 to September 2000.
Others:
MARIANNE T. SCHUSTER, age 42, Vice President and Controller of FLPMI since 1984.
KRISTIN L. CHRISTMAN, age 33, Portfolio Manager of FLPMI since December 1995 and Equipment Brokerage Manager since 1993.
Item 11.
Item 11. EXECUTIVE COMPENSATION
The following table sets forth information relating to the aggregate compensation earned by the General Partner of the Fund during the year ended December 31, 2000:
Name of Individual or Capacities in Number in Group Which Served Compensation
F.L. Partnership Management, Inc. General Partner $42,185(1) =======
(1) This amount does not include the General Partner's share of cash distributions made to all partners.
Item 12.
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
(a) As of December 31, 2000, there was no person or group known to the Fund that owned more than 5% of the Fund's outstanding securities either beneficially or of record.
(b) In 1986, the General Partner contributed $1,000 to the capital of the Fund but it does not own any of the Fund's outstanding securities. No individual director or officer of F.L. Partnership Management, Inc. nor such directors or officers as a group, owns more than one percent of the Fund's outstanding securities. The General Partner owns a general partnership interest which entitles it to receive 3.5% of cash distri- butions until the Limited Partners have received an amount equal to the purchase price of their units plus a 10% compounded Priority Return; thereafter 10%. The General Partner will also share in net income equal to the greater of its cash distributions or 1% of net income or to the extent there are losses, 1% of such losses.
(c) There are no arrangements known to the Fund that would, at any sub- sequent date, result in a change in control of the Fund.
Item 13.
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
During the year ended December 31, 2000, the Fund was charged $42,185 of management fees by the General Partner. The General Partner will continue to receive 6% or 3% of rental payments on equipment under operating leases or full pay-out leases, respectively for administrative and management services performed on behalf of the Fund. Full pay-out leases are noncancellable leases with terms in excess of 42 months and for which rental payments during the initial term are at least sufficient to recover the purchase price of the equipment, including acquisition fees.
The General Partner also receives 3.5% of cash distributions until the Limited Partners have received an amount equal to the purchase price of their units plus a 10% compounded Priority Return. Thereafter, the General Partner will receive 10% of cash distributions. During the year ended December 31, 2000, the General Partner received $14,000 of cash distributions.
The Fund incurred $43,459 of reimbursable costs to the General Partner and its parent company for services and materials provided in connection with the administration of the Fund during 2000.
PART IV
Item 14.
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a) (1) and (2). The response to this portion of Item 14 is submitted as a separate section of this report commencing on page.
(a) (3) and (c) Exhibits (numbered in accordance with Item 601 of Regulation S-K)
Exhibit Numbers Description Page Number
3(a) & (4) Amended and Restated Agreement * of Limited Partnership
(9) not applicable
(10) not applicable
(11) not applicable
(12) not applicable
(13) not applicable
(18) not applicable
(19) not applicable
(22) not applicable
(23) not applicable
(24) not applicable
(25) not applicable
(28) not applicable
* Incorporated by reference.
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.
FIDELITY LEASING INCOME FUND IV, L.P. A Delaware limited partnership
By: F.L. PARTNERSHIP MANAGEMENT, INC.
/s/ Freddie M. Kotek By: ___________________________ Freddie M. Kotek, Chairman and President
Dated March 29, 2001
Pursuant to the requirements of the Securities Exchange Act of 1934, this annual report has been signed below by the following persons, on behalf of the Registrant and in the capacities and on the date indicated:
Signature Title Date
/s/ Freddie M. Kotek ____________________________ Chairman of the Board of Directors 3-29-01 Freddie M. Kotek and President of F.L. Partnership Management, Inc. (Principal Executive Officer)
/s/ Michael L. Staines ____________________________ Director of F.L. Partnership 3-29-01 Michael L. Staines Management, Inc.
/s/ Marianne T. Schuster ____________________________ Vice President and Controller 3-29-01 Marianne T. Schuster of F.L. Partnership Management, Inc. (Principal Financial Officer)
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
Pages
Report of Independent Certified Public Accountants
Balance Sheets as of December 31, 2000 and 1999
Statements of Operations for the years ended December 31, 2000, 1999 and 1998
Statements of Partners' Capital for the years ended December 31, 2000, 1999 and 1998
Statements of Cash Flows for the years ended December 31, 2000, 1999 and 1998
Notes to Financial Statements -
All schedules have been omitted because the required information is not applicable or is included in the Financial Statements or Notes thereto.
Report of Independent Certified Public Accountants
The Partners Fidelity Leasing Income Fund IV, L.P.
We have audited the accompanying balance sheets of Fidelity Leasing Income Fund IV, L.P. as of December 31, 2000 and 1999, and the related state- ments of operations, partners' capital and cash flows for each of the three years in the period ending December 31, 2000. These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the finan- cial statements are free of material misstatement. An audit includes examin- ing, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting princi- ples 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 Fidelity Leasing Income Fund IV, L.P. as of 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 of America.
Grant Thornton LLP Philadelphia, Pennsylvania February 16, 2001
FIDELITY LEASING INCOME FUND IV, L.P.
The accompanying notes are an integral part of these financial statements.
FIDELITY LEASING INCOME FUND IV, L.P.
The accompanying notes are an integral part of these financial statements.
FIDELITY LEASING INCOME FUND IV, L.P.
The accompanying notes are an integral part of these financial statements.
FIDELITY LEASING INCOME FUND IV, L.P.
The accompanying notes are an integral part of these financial statements.
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND NATURE OF BUSINESS
Fidelity Leasing Income Fund IV, L.P. (the "Fund") was formed in December 1986. The General Partner of the Fund is F.L. Partnership Management, Inc. ("FLPMI") which is a wholly owned subsidiary of Resource Leasing, Inc., a wholly owned subsidiary of Resource America, Inc. (Resource America). The Fund is managed by the General Partner. The Fund's limited partnership interests are not publicly traded. There is no market for the Fund's limited partnership interests and it is unlikely that any will develop. The Fund acquires equip- ment including printers, tape storage devices, data communications equipment, computer terminals, technical workstations and networking equipment, as well as other electronic equipment, which is leased to third parties throughout the United States on a short-term basis.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration of Credit Risk
Financial instruments which potentially subject the Fund to concentra- tions of credit risk consist principally of temporary cash investments. The Fund places its temporary investments in money market savings accounts.
Concentrations of credit risk with respect to accounts receivables are limited due to the dispersion of the Fund's lessees over different industries and geographies.
Impairment of Long-Lived Assets
The Fund reviews its assets to determine if it has any long-lived assets that are carried on the books for an amount that may not be recoverable. If it is determined that an asset's estimated future cash flows will not be suf- ficient to recover its carrying amount, an impairment charge will be recorded.
Equipment Held for Sale or Lease
Equipment held for sale or lease is carried at its estimated net realiz- able value.
Use of Estimates
In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates.
Accounting for Leases
The Fund's leasing operations consist of both operating and direct financing leases. Under the operating method of accounting for leases, the cost of the leased equipment is recorded as an asset and depreciated on a
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Accounting for Leases (Continued)
straight-line basis over its estimated useful life, up to six years. Acqui- sition fees associated with lease placements are allocated to equipment when purchased and depreciated as part of equipment cost. Rental income consists of monthly periodic rentals due under the terms of the leases. Generally, during the remaining terms of existing operating leases, the Fund will not recover all of the undepreciated cost and related expenses of its rental equipment and is prepared to remarket the equipment in future years. Upon sale or other disposition of assets, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss, if any, is reflected in income.
Under the direct financing method of accounting for leases, income (the excess of the aggregate future rentals and estimated additional amounts recoverable upon expiration of the lease over the related equipment cost) is recognized over the life of the lease using the interest method.
Income Taxes
Federal and State income tax regulations provide that taxes on the income or benefits from losses of the Fund are reportable by the partners in their individual income tax returns. Accordingly, no provision for such taxes has been made in the accompanying financial statements.
Statements of Cash Flows
For purposes of the statements of cash flows, the Fund considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.
Net Income per Equivalent Limited Partnership Unit
Net income per equivalent limited partnership unit is computed by dividing net income allocated to limited partners by the weighted average number of equivalent limited partnership units outstanding during the year. The weighted average number of equivalent units outstanding during the year is computed based on the weighted average monthly limited partners' capital account balances, converted into equivalent units at $500 per unit.
Significant Fourth Quarter Adjustments
Currently, the Fund's practice is to review the recoverability of its undepreciated costs of rental equipment quarterly. The Fund's policy, as part of this review, is to analyze such factors as releasing of equipment, techno- logical developments and information provided in third party publications. Based upon this review, there were no significant fourth quarter adjustments made in 2000 and 1999. The Fund recorded an adjustment of approximately $29,000 or $2.89 per equivalent limited partnership unit to write down its rental equipment in the fourth quarter of 1998.
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
3. ALLOCATION OF PARTNERSHIP INCOME, LOSS AND CASH DISTRIBUTIONS
Cash distributions (except for the period from January 1, 1992 through June 30, 1995), if any, are made quarterly as follows: 96.5% to the Limited Partners and 3.5% to the General Partner, until the Limited Partners have received an amount equal to the purchase price of their units, plus a 10% compounded priority return (an amount equal to 10% compounded annually on the portion of the purchase price not previously distributed); thereafter, 90% to the Limited Partners and 10% to the General Partner.
Net Losses are allocated 99% to the Limited Partners and 1% to the General Partner. The General Partner is allocated Net Income equal to its cash distributions, but not less than 1% of Net Income, with the balance allocated to the Limited Partners.
Net Income (Losses) allocated to the Limited Partners are allocated to individual limited partners based on the ratio of the daily weighted average partner's net capital account balance (after deducting related commission expense) to the total daily weighted average of the Limited Partners' net capital account balances.
4. EQUIPMENT LEASED
Equipment on lease consists of equipment under operating leases. The lessees have agreements with the manufacturer to provide maintenance for the leased equipment. The Fund's operating leases are for initial lease terms of 23 to 60 months.
In accordance with accounting principles generally accepted in the United States of America, the Fund writes down its rental equipment to its estimated net realizable value when the amounts are reasonably estimated and only recog- nizes gains upon actual sale of its rental equipment. As a result, there was no write-down of equipment to net realizable value in 2000. In 1999 and 1998, approximately $17,000 and $251,000, respectively, was charged to write-down of equipment to net realizable value. Any future losses are dependent upon unan- ticipated technological developments affecting the equipment in subsequent years.
The net investment in direct financing leases as of December 31, 2000 is as follows:
Net minimum lease payments to be received $919,000 Unearned rental income (86,000) Unguaranteed residuals - ________ $833,000 ========
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
4. EQUIPMENT LEASED (Continued)
The future approximate minimum rentals to be received on noncancellable operating and direct financing leases as of December 31 are as follows:
Direct Operating Financing
2001 $428,000 $399,000 2002 233,000 376,000 2003 39,000 144,000 ________ ________ $700,000 $919,000 ======== ========
5. RELATED PARTY TRANSACTIONS
The General Partner receives 6% or 3% of rental payments on equipment under operating leases and full pay-out leases, respectively, for adminis- trative and management services performed on behalf of the Fund. Full pay-out leases are noncancellable leases with terms in excess of 42 months and for which rental payments during the initial term are at least sufficient to recover the purchase price of the equipment, including acquisition fees.
The General Partner may also receive up to 3% of the proceeds from the sale of the Fund's equipment for services and activities to be performed in connection with the disposition of equipment. The payment of this sales fee is deferred until the Limited Partners have received cash distributions equal to the purchase price of their units plus a 10% cumulative compounded priority return. Based on current estimates, it is not expected that the Fund will be required to pay the General Partner a sales fee.
Additionally, the General Partner and its parent company are reimbursed by the Fund for certain costs of services and materials used by or for the Fund except those items covered by the above-mentioned fees. Following is a summary of fees and costs charged by the General Partner and its parent company during the years ended December 31:
2000 1999 1998
Management fee $42,185 $51,862 $66,690 Reimbursable costs 43,459 58,688 67,846
During 1999, the Fund maintained its checking and investment accounts in Jefferson Bank, a subsidiary of JeffBanks, Inc. in which the Chairman of Resource America served as a director. In November 1999, Hudson United Bancorp acquired JeffBanks, Inc. The Fund maintains a normal banking relationship with Hudson United Bancorp. As of December 31, 2000 and 1999, the Chairman of Resource America did not hold any position with Hudson United Bancorp.
Amounts due from related parties at December 31, 2000 and 1999 represent monies due to the Fund from the General Partner and/or other affiliated funds for rentals and sales proceeds collected and not yet remitted to the Fund.
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
5. RELATED PARTY TRANSACTIONS (Continued)
Amounts due to related parties at December 31, 2000 and 1999 represent monies due to the General Partner for the fees and costs mentioned above, as well as, rentals and sales proceeds collected by the Fund on behalf of other affiliated funds.
6. MAJOR CUSTOMERS
For the year ended December 31, 2000, three customers accounted for 50%, 32% and 10% of the Fund's rental income. For the year ended December 31, 1999, three customers accounted for 42%, 27% and 14% of the Fund's rental income. For the year ended December 31, 1998, four customers accounted for 34%, 21%, 15% and 12% of the Fund's rental income.
7. CASH DISTRIBUTIONS
Below is a summary of the quarterly cash distributions paid to partners during the years ended December 31:
In addition, the General Partner declared and paid a cash distribution of $100,000 in February 2001 for the three months ended December 31, 2000, to all admitted partners as of December 31, 2000.