In Lisle, Illinois, Corporate Systems leases 12,553 square feet of the Lisle Executive Center, which is used as an office for its midwest region division.
The following table sets forth summary selected financial and operating information of the Partnership for the years indicated (dollar amounts and number of units in thousands, except per unit data).
YEAR ENDED DECEMBER 31, 1996, COMPARED TO THE YEAR ENDED DECEMBER 31, 1995
Cost of services as a percent of revenues was 72 percent and 77 percent for the fiscal years 1996 and 1995, respectively.
OPERATING REVENUES Research and development $ 1,500,000 $ 206,083 Product development performed under contract for others 1,767,441 1,906,962 ------------ ------------ SPECIAL PROJECT FEES 3,267,441 2,113,045 ------------ ------------
The Partnership's revenues are derived from the sales of products and services that generally can be adjusted due to the effects of inflation.
Independent Auditors' Report. . . . . . . . . . . . . . . . . . . . . 19
Except for one share of common stock issued in exchange for $1,000 cash for the purpose of capitalizing the Company to do business, the remainder of the Company's common stock has been authorized but remained unissued at December 31, 1996, pending consummation of the reorganization of Corporate Systems, Ltd. from a partnership structure to a corporation which became effective February 1, 1997. Such reorganization was implemented through an exchange offer whereby owners of 5,922,814 units of Corporate Systems Ltd. were exchanged for an equal number of the Company's common stock. All of the assets and liabilities of Corporate Systems, Ltd. were transferred to Corporate Systems, Inc. as of the effective date. Corporate Systems, Inc. then became a wholly owned subsidiary of the Company.
- Elimination of existing partners' equity in exchange for common stock of equal value.
As a corporation, DPI's income is subject to taxation under provisions of the Internal Revenue Code and a separate federal income return is filed. Such amounts related to DPI were not significant in 1996, 1995 and 1994.
The Partnership is obligated under various capital leases for certain computer equipment and furniture that expire over the next year. At December 31, 1996 and 1995, computer equipment and furniture having a cost of approximately $137,000 and $734,000, respectively, and accumulated depreciation of approximately $119,000 and $636,000, respectively, were recorded under capital leases and included in property, plant and equipment. Amortization of assets held under capital leases is included with depreciation and amortization expense.
The Partnership also has several noncancelable operating leases primarily for equipment and office space that expire over the next three years. The Partnership has several operating leases for certain computer equipment that require monthly rental payments that are charged to operations as incurred. Rent expense for all of the Partnership's operating leases totaled approximately $4,630,000, $4,986,000 and $4,187,000 for 1996, 1995 and 1994, respectively.
Postretirement benefit cost 115,082 98,165 Benefit payments made (35,880) (18,726) -------- -------- Obligation at December 31 $749,066 $669,864 -------- -------- -------- --------