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UNITED STATES SECURITIES AND
EXCHANGE COMMISSION

Washington, D.C. 20549

# Form 10-Q

(Mark One)

[X]    
          Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act
          of 1934 for the quarterly period ended June 30, 2003 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 333-71073

# IKON Receivables, LLC

(Exact name of
registrant as specified in its charter)

|DELAWARE                        
(State or other jurisdiction of          
incorporation or organization)
1738 Bass Road, P.O. Box 9115, Macon, Georgia 
 (Address of principal executive offices) | 23-2990188
(I.R.S. Employer Identification No.)
31208
(Zip Code)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------

Registrants
telephone number, including area code:   (478) 471-2300Former name, former
address and former fiscal year, if changed since last report:   None

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 whether the
registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).    Yes   [   ]         No  [X]

Registered debt outstanding as of August 12, 2003 was $470,150,049.

The registrant meets the conditions set forth in General Instruction
(H)(1)(a) and (b) of Form 10-Q and is therefore filing with the reduced format disclosure contemplated thereby.

1

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# IKON Receivables, LLC

# INDEX*

# PART I.   FINANCIAL
INFORMATION

|                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|---------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Item 1.
               Item 2.               Item 4. | Condensed Financial Statements
     Balance Sheets - June 30, 2003 (unaudited) and September 30, 2002     Statements of Income - Three and nine months ended June
30, 2003 and 2002 (unaudited)     Statements of Cash Flows - Nine months ended June 30, 2003 and 2002 (unaudited)     Notes to Condensed Financial Statements (unaudited)     Management's
Discussion and Analysis of Financial Condition and Results of Operations     Controls and  Procedures

# PART II.   OTHER INFORMATION

|        |                                 
|------- | --------------------------------
|Item 6. | Exhibits and Reports on Form 8-K

# SIGNATURES

* All amounts contained in this
quarterly report on Form 10-Q are in thousands unless otherwise noted.

2

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# FORWARD-LOOKING
INFORMATION

This Report includes or incorporates
by reference information which may constitute forward-looking statements within the
meaning of the federal securities laws. Although IKON Receivables, LLC (the
Company) believes the expectations contained in such forward-looking
statements are reasonable, it can give no assurances that such expectations will prove
correct. Such forward-looking information is based upon managements current plans or
expectations and is subject to a number of risks and uncertainties that could
significantly affect current plans, anticipated actions and the future financial condition
and results of IKON Office Solutions, Inc. (IKON) and IOS Capital, LLC
(IOSC). These risks and uncertainties, which apply to the Company, IOSC and
IKON, include, but are not limited to, risks and uncertainties relating to: factors which
may affect the Companys ability to collect amounts due from lessees in order to make
payments due in connection with the Companys lease-backed notes (such as lessee
defaults or factors impeding recovery efforts); growth opportunities and increasing market
share; productivity and infrastructure initiatives; earnings, revenue, cash flow, margin,
and cost-savings projections; the effect of competitive pressures on equipment sales;
expected savings and lower costs from productivity and infrastructure initiatives;
developing and expanding strategic alliances and partnerships; the impact of e-commerce
and e-procurement initiatives; the implementation of e-IKON; anticipated growth rates in
the digital and color equipment and outsourcing industries; the effect of foreign currency
exchange risk; the reorganization of IKONs business segments and the anticipated
benefits of operational synergies related thereto; and IKONs ability to finance its
current operations and its growth initiatives. As a consequence of these and other risks
and uncertainties, current plans, anticipated actions and future financial condition and
results may differ materially from those expressed in any forward-looking statements made
by or on behalf of the Company, IOSC or IKON.

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# PART I.   FINANCIAL
INFORMATION

# Item 1.   Condensed
Financial Statements

# IKON Receivables, LLC  Balance Sheets

|                                       | June 30,
2003  (unaudited) | September 30,
2002 |   |         
|-------------------------------------- | -------------------------- | ------------------ | - | --------
|                                      
|Assets                                 |                            |                    |   |         
|Investment in leases:                  |                            |                    |   |         
|Finance lease receivables              |                            |                    | $ | 806,052 
|Less: Unearned income                  |                            |                    |   | (94,756)
|                                      
|                                       |                            |                    |   | 711,296 
|                                       |                            |                    |   |         
|Cash                                   |                            |                    |   | 1       
|Restricted cash                        |                            |                    |   | 68,031  
|Accounts receivable                    |                            |                    |   | 23,229  
|Prepaid expenses and other assets      |                            |                    |   | 1,301   
|Deferred tax assets                    |                            |                    |   | 8,592   
|                                      
|Total Assets                           |                            |                    | $ | 812,450 
|                                      
|                                      
|Liabilities and Member's Deficit       |                            |                    |   |         
|Liabilities:                           |                            |                    |   |         
|Accrued expenses                       |                            |                    | $ | 59,959  
|Lease-backed notes                     |                            |                    |   | 568,636 
|Deferred tax liabilities               |                            |                    |   | 256,067 
|                                      
|Total Liabilities                      |                            |                    |   | 884,662 
|                                      
|                                       |                            |                    |   |         
|Commitments and contingencies          |                            |                    |   |         
|                                      
|Member's deficit:                      |                            |                    |   |         
|Contributed capital                    |                            |                    |   | 525,783 
|Retained deficit                       |                            |                    |   | (585,107
|Accumulated other comprehensive loss   |                            |                    |   | (12,888 
|                                      
|Total Member's Deficit                 |                            |                    |   | (72,212 
|                                      
|Total Liabilities and Member's Deficit |                            |                    | $ | 812,450 
|                                      

See notes to condensed
financial statements.

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# IKON Receivables,
LLCStatements of Income(unaudited)

|                                            | Three Months Ended
     June 30, | Nine Months Ended
    June 30,
|------------------------------------------- | -------------------------------- | ------------------------------
|                                           
|                                            |                                  | 2003                          
|                                           
|Revenues                                    |                                  |                               
|Lease finance income                        | $                                | 21,946                        
|Interest income on restricted cash          |                                  | 131                           
|                                           
|                                            |                                  | 22,077                        
|                                           
|                                           
|Expenses                                    |                                  |                               
|Interest                                    |                                  | 10,688                        
|General and administrative                  |                                  | 1,214                         
|                                           
|                                           
|                                            |                                  | 11,902                        
|                                           
|                                           
|Income before taxes on income               |                                  | 10,175                        
|                                            |                                  |                               
|Taxes on income                             |                                  | 2,604                         
|                                           
|Net income before cumulative effect of a    |                                  |                               
|change in accounting principle              |                                  | 7,571                         
|                                            |                                  |                               
|Cumulative effect of a change in accounting |                                  |                               
|principle  (Note 6)                         |                                  |                               
|                                           
|Net income (loss)                           | $                                | 7,571                         
|                                           
|                                           
|                                           

See notes to condensed financial
statements.

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# IKON Receivables,
LLCStatements of Cash Flows(unaudited)

|                                                                  | Nine Months Ended
    June 30,
|----------------------------------------------------------------- | ------------------------------
|                                                                 
|                                                                  |                               
|                                                                 
|Cash Flows from Operating Activities                              |                               
|Net income (loss)                                                 |                               
|Additions (deductions) to reconcile net income (loss) to net cash |                               
|provided by operating activities:                                 |                               
|Amortization                                                      |                               
|Cumulative effect of a change in accounting principle             |                               
|Provision for income taxes                                        |                               
|Changes in operating assets and liabilities:                      |                               
|Decrease in accounts receivable                                   |                               
|Increase in prepaid expenses and other assets                     |                               
|Decrease in accrued expenses                                      |                               
|                                                                 
|Net cash provided by operating activities                         |                               
|                                                                 
|                                                                 
|Cash Flows from Investing Activities                              |                               
|Investments in leases:                                            |                               
|Collections, net of financing income                              |                               
|                                                                 
|Net cash provided by investing activities                         |                               
|                                                                 
|                                                                 
|Cash Flows from Financing Activities                              |                               
|Payments on lease-backed notes                                    |                               
|Decrease in restricted cash                                       |                               
|Capital distributed to IOS Capital, LLC ("IOSC")                  |                               
|                                                                 
|Net cash used in financing activities                             |                               
|                                                                 
|                                                                 
|Net increase in cash                                              |                               
|                                                                  |                               
|                                                                 
|Cash  at beginning of year                                        |                               
|                                                                 
|Cash  at end of period                                            |                               
|                                                                 
|                                                                  |                               
|Supplemental financing activities:                                |                               
|                                                                  |                               
|Non-cash capital contributions                                    |                               
|                                                                  |                               
|Interest paid                                                     |                               

See notes to condensed
financial statements.

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# IKON Receivables, LLC 
Notes to Condensed
Financial Statements   (unaudited)

Note 1:     Basis of
Presentation

The accompanying unaudited condensed
financial statements of IKON Receivables, LLC (the Company) have been prepared
in accordance with accounting principles generally accepted in the United States for
interim financial information and the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. In the opinion of management, all adjustments (consisting of normal
recurring adjustments) considered necessary for a fair presentation have been included.
For further information, refer to the financial statements and footnotes included in the
Companys Annual Report on Form 10-K for the year ended September 30, 2002. Certain
prior year amounts have been reclassified to conform with the current year presentation.

Note 2:     Capital
Contributions

In fiscal 2003, IOSC made non-cash
capital distributions to the Company of $133,973 of office equipment leases or contracts
and related assets, net of deferred taxes, and the reversal of current income tax
liability.

Note 3:     Lease-Backed Notes

The Company repaid $485,406 of
lease-backed notes during the nine months ended June 30, 2003.

Note 4:      Comprehensive
Income (Loss)

Total comprehensive income (loss) is
as follows:

|                                                     | Three Months Ended  June 30, |  | Nine Months Ended June 30,
|---------------------------------------------------- | ---------------------------- |  | --------------------------
|                                                     |                              |  |                           
|                                                     | 2003                         |  | 2002                      
|                                                     |                              |  |                           
|Net income (loss)                                    | $     7,571                  |  | $    13,163               
|Gain (loss) on derivative financial instruments, net
|of tax expense of: $2,171 and $4,411 for the        
|three months ended June 30, 2003 and 2002,          
|respectively; $6,761 and $6,825 for the nine months 
|ended June 30, 2003 and 2002, respectively           | 3,257                        |  | (1,608)                   
|                                                     |                              |  |                           
|Total comprehensive income (loss)                    | $    10,828                  |  | $    11,555               
|                                                     |                              |  |                           

Note 5:      Financial
Instruments

As of June 30, 2003, all of the
Companys derivatives designated as hedges are interest rate swaps which qualify for
evaluation using the short cut method for assessing effectiveness. As such,
there is an assumption of no ineffectiveness. The Company uses interest rate swaps to fix
the interest rates on its variable rate classes of lease-backed notes, which results in a
lower cost of capital than if we had issued fixed rate notes. During the nine months ended
June 30, 2003, unrealized gains totaling $10,141 after taxes, were recorded in accumulated
other comprehensive loss.

Note 6:      Income Taxes

The Company is classified as a
single-member limited liability corporation (LLC) and, as such, is disregarded
as an entity separate from its owners for income tax purposes. During fiscal 2002, the
Company became aware that the predominant practice for single-member LLCs is to provide
for income taxes in their separate financial statements, and concluded that this is a more
informative presentation. On April 1, 2002, the Company changed its accounting policy to a
preferable method and began recording income taxes in accordance with Statement of
Financial Accounting Standards No. 109, Accounting for Income Taxes
(SFAS 109). The Company and IKON Receivables Funding, Inc. (the Sole
Member) are included in the consolidated tax return of IKON Office Solutions, Inc.
(IKON) and, for purposes of applying SFAS 109, are allocated current and
deferred income taxes on a separate return basis. Currently payable/receivable income
taxes are settled in accordance with an informal tax sharing agreement with IKON and the
Sole Member.

The change in accounting for income
taxes was retroactively adopted as of October 1, 2001, the first day of the fiscal year of
the change. The $843,752 cumulative effect of the change on prior years is included in
income for the nine months ended June 30, 2002.

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The net investments in leases
represents the uncollected contractual cash flow of the leases that were contributed to
the Company by the Sole Member in the form of contributed capital. The tax basis and
related income tax benefits attributable to the leases are retained by the Sole Member.
Therefore, the effect of the change in principle resulted in a deferred tax liability of
$843,752 at October 1, 2001. The related deferred tax liability is attributed to the
difference between the book and tax basis of the net leases outstanding. Because, under
the informal tax-sharing agreement the Company is not obligated to reimburse the Sole
Member for current income taxes, all reversals of the deferred tax liability to current
income taxes payable for the Company are expected to result in additional capital
contributions from the Sole Member at the time of the reversal.

Item 2.         Management's Discussion and Analysis of Financial Condition and Results of Operations

Pursuant to General Instruction
H(2)(a) of Form 10-Q, the following analysis of the results of operations is presented in
lieu of Managements Discussion and Analysis of Financial Condition and Results of
Operations.

# Three Months Ended
June 30, 2003  Compared to the Three
Months Ended June 30, 2002

Lease finance income earned on the
leases offsets interest expense on the lease-backed notes, amortization of debt issuance
costs and the fees charged by IOSC for servicing the leases and providing administrative
services to the Company. For the three months ended June 30, 2003 and 2002, income
generated from the leases was $21,946 and $46,089, interest income on restricted cash was
$131 and $323, while interest expense during the period was $10,688 and $21,934 and
administrative expenses were $1,214 and $2,539, respectively. Collections on the lease
receivables, net of financing income, were $123,726 and $233,772 and the Company repaid
$121,895 and $191,686 of principal on the lease-backed notes for the three months ended
June 30, 2003 and 2002, respectively. Taxes on income for the three months ended June 30,
2003 and 2002 were $2,604 and $8,776, respectively. The Companys effective income
tax rate was decreased from 40% to 36% in the quarter ended June 30, 2003, therefore the
effective income tax rate was 26% for the three months ended June 30, 2003 and 40% for the
three months ended June 30, 2002. The changes described above are directly related to the
collections on finance lease receivables and the paydown of the debt from June 30, 2002 to
June 30, 2003.

# Nine Months Ended June
30, 2003  Compared to the Nine
Months Ended June 30, 2002

Lease finance income earned on the
leases offsets interest expense on the lease-backed notes, amortization of debt issuance
costs and the fees charged by IOSC for servicing the leases and providing administrative
services to the Company. For the nine months ended June 30, 2003 and 2002, income
generated from the leases was $78,504 and $155,554, interest income on restricted cash was
$502 and $1,458, while interest expense during the period was $38,015 and $74,833 and
administrative expenses were $4,340 and $8,669, respectively. Collections on the lease
receivables, net of financing income, were $455,341 and $635,841 and the Company repaid
$485,406 and $568,352 of principal on the lease-backed notes for the nine months ended
June 30, 2003 and 2002, respectively. Taxes on income for the nine months ended June 30,
2003 and 2002 were $13,194 and $29,404, respectively. The Companys effective income
tax rate was 36% for the nine months ended June 30, 2003 and 40% for the nine months ended
June 30, 2002. The changes described above are directly related to the collections on
finance lease receivables and the paydown of the debt from June 30, 2002 to June 30, 2003.

# Contractual Obligations

The following summarizes the
Companys significant contractual obligations and commitments as of June 30, 2003:

|                        |             |               |              
|----------------------- | ----------- | ------------- | -------------
|
|                       
|Contractual Obligations | Total       | June 30, 2004 | June 30, 2005
|                       
|Lease-backed notes      | $   568,636 | $   387,846   | $   180,790  

Payments on lease-backed notes
generally are made from collections of our finance lease receivables. At June 30, 2003,
lease-backed notes were $568,636 and net finance lease receivables were $711,296.

# Item 4.   Controls and
Procedures

Evaluation of Disclosure Controls
and Procedures.    The Companys Principal Executive Officer and Principal Financial
Officer have evaluated the effectiveness of the Companys disclosure controls and
procedures (as such term is defined in Rules 13a-15(e) and under the Exchange Act) as of
the end of the period covered by this Quarterly Report on Form 10-Q. Based on this
evaluation, they have concluded that, as of the evaluation date, the Companys
disclosure controls and procedures are reasonably designed to alert them on a timely basis
to material information relating to the Company (including its consolidated subsidiaries)
required to be included in its reports filed or submitted under the Exchange Act.

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PART II.  OTHER INFORMATION

|Item 6. | Exhibits and Reports on Form 8-K
|------- | --------------------------------

| | a) | Exhibits            |                                                                                                                                                                               
| | -- | ------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |    | 31.1                | Certification of Principal Executive Officer of IKON Receivables, LLC pursuant to Rule 13a-14(a) or Rule
15d-14(a) of the Securities Exchange Act of 1934                     
|
| |    | 31.2                | Certification of Principal Financial Officer of IKON Receivables, LLC pursuant to Rule 13a-14(a) or Rule
15d-14(a) of the Securities Exchange Act of 1934                     
|
| |    | 32                  | Certifications of Principal Executive Officer and Principal Financial
Officer of IKON Receivables, LLC
pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350
|
| | b) | Reports on Form 8-K
|
| |    | None               

SIGNATURES

Pursuant to the  requirements  of the  Securities  Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the  undersigned,  thereunto  duly  authorized.  This  report  has also been  signed by the
undersigned in his capacity as the chief accounting officer of the Registrant.

|IKON Receivables, LLCDate:       August 14, 2003By:            IKON Receivables Funding, Inc.,
                 As ManagerBy:           /s/ Harry G. Kozee
Name:      Harry G. Kozee
Title:        Vice President - Finance
(Principal Financial Officer) | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

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