Salomon Swapco Inc
Notes to Financial Statements
Note 6. Capital (continued)
Stockholder's equity
$119,694
Prepaid expenses and other assets
(13,321)
Deferred revenue
228,205
Haircuts on permitted investments
(17,747)
Receivable from affiliates
(205)
Other differences
2,622
Capital for capital adequacy purposes
$319,248
Note 7. Lease commitments
Swapco has a noncancelable sublease covering office space
at 7 World Trade Center in New York expiring in 2010 and
a lease, renewable annually, for space at 8800 Hidden River
Parkway in Tampa, Florida. Both leases are with Salomon
Inc. Presented below is a schedule of minimum future
rentals as of September 30, 1997 (dollars in thousands).
Minimum
future rentals
Remainder of 1997
$ 97
1998
320
1999
113
2000
113
2001
113
Thereafter
992
Note 8. Travelers merger
The Board of Directors of Salomon Inc, Swapco's ultimate
parent, has approved a merger in which Salomon Inc will
become a wholly-owned subsidiary of Travelers Group Inc.
Following the merger, Salomon Inc will be combined with
Travelers' subsidiary, Smith Barney Holdings Inc., to form
Salomon Smith Barney Holdings Inc. as a wholly-owned
subsidiary of Travelers.
Swapco is structurally unaffected by this change in its
ultimate ownership and no Swapco trades will be
terminated because of it. The merger is not a trigger event
for Swapco. Swapco's triple-A rating has been reaffirmed
by all of its rating agencies: Fitch, Moody's and Standard &
Poor's.
22
