CIT Group Inc 8-K 2008
Washington, D.C. 20549
Date of Report (Date of earliest event reported): November 5, 2008
505 Fifth Avenue
Registrant's telephone number, including area code (212) 771-0505
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Item 2.01 Completion of Acquisition or Disposition of Assets.
In June 2008, management contractually agreed to sell the Companys home lending business, including the home mortgage and manufactured housing portfolios and the related servicing operations. The sale of assets and the assignment of liabilities were completed in early July with the receipt of $1.7 billion of the total $1.8 billion in cash consideration. The final amounts are expected to be received upon transfer of servicing, projected to occur by February 2009. In conjunction with the sales, transition services will be provided to the purchaser on a revenue neutral basis (at our approximate cost). CIT is not required to repurchase any of the home lending or manufactured housing receivables contemplated in these sales. Expected costs related to the sale have been estimated by management based on currently available information and included in the loss on disposal.
Exhibit 99.1 sets forth unaudited pro forma financial statements reflecting the sale of the house lending business. Additional details regarding the sale are contained in the Current Report on Form 8-K filed July 1, 2008 and the Quarterly Report on Form 10-Q filed August 11, 2008.
Item 8.01 Other Events
As required by Statement of Accounting Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets (SFAS 144), the results for the Companys home lending business were reported as a discontinued operation for all periods presented in the June 2008 unaudited Statements of Income and Cash Flows that were included in the Companys June 2008 Form 10-Q. The assets and liabilities of the business were presented in the Consolidated Balance Sheets included in the June 2008 Form 10-Q as Assets of discontinued operation and Liabilities of discontinued operation as of June 30, 2008 and December 31, 2007.
The exhibits to this Form 8-K update financial statements and related analysis and supplemental information previously reported in the Companys December 2007 Form 10-K to present the Companys home lending business as a discontinued operation for all periods presented.
Item 9.01 Financial Statements and Exhibits.
(b) Pro Forma Financial Information
The Companys Unaudited Pro Forma Financial Information is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The December 2007 Statement of Income amounts include in the Amounts Transferred to Discontinued Operations column within the Companys Unaudited Pro Forma Financial Information. The June 2008 Balance Sheet and Statement of Income shows only As Reported as the Company has previously filed on Form 8-K filed July 17, 2008 and on Form 10-Q filed August 11, 2008 financial statements reflecting the sale and presented the former home lending businesses as a discontinued operation.
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements (including statements regarding future financial and operating results) involve risks, uncertainties and contingencies, many of which are beyond CITs control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. All statements contained in this document that are not clearly historical in nature are forward-looking, and the words anticipate, believe, expect, estimate, plan, and similar expressions are generally intended to identify forward-looking statements. Economic, business, funding market, competitive and/or regulatory factors, among others, affecting CITs businesses are examples of factors that could cause actual results to differ materially from those described in the forward-looking statements. More detailed information about these factors are described in CITs filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2007 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2008. CIT is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
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 hereunto duly authorized.
Dated: November 5, 2008