Item 1. BUSINESS
Fidelity Leasing Income Fund IV, L.P. (the "Fund"), a Delaware limited partnership, was organized in 1986 and acquires equipment, primarily computer equipment, including printers, tape storage devices, data communications equipment, computer terminals, technical workstations as well as networking equipment, which is leased to third parties on a short- term basis. The Fund's principal objective is to generate leasing revenues for distribution. 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.
The computer equipment industry is extremely competitive as well. Competitive factors include pricing, technological innovation and methods of financing. Certain manufacturer-lessors maintain advantages through patent protection, where applicable, and through product protection by the use of a policy which combines service and hardware benefits with payment for such benefits accomplished through a single periodic charge.
A brief description of the types of equipment in which the Fund has invested as of December 31, 1997, 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 and aggregate purchase price of the various types of equipment acquired and leased by the Fund as of December 31, 1997, along with the percentage of total equipment represented by each type of equipment, a breakdown of equipment usage by industrial classification and the average initial term of leases:
Purchase Price Percentage of Type of Equipment Acquired of Equipment Total Equipment
Communication Controllers $ 972,759 16.63% Disk Storage Systems 1,711,398 29.26 Network Communications 233,864 4.00 Printers 340,516 5.82 Tape Storage Systems 1,191,851 20.38 Technical Workstations and Terminals 1,382,515 23.64 Other 15,959 .27 __________ ______
Totals $5,848,862 100.00% ========== ======
Breakdown of Equipment Usage By Industrial Classification
Purchase Price Percentage of Type of Business of Equipment Total Equipment
Computer/Data Processing $1,021,152 17.46% Diversified Financial/Banking/ Insurance 3,509,818 60.01 Manufacturing/Refining 803,163 13.73 Retailing/Consumer Goods 511,641 8.75 Utilities 3,088 .05 __________ ______
Totals $5,848,862 100.00% ========== ======
Average Initial Term of Leases (in months): 30
All of the above equipment is currently leased under operating leases.
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 STOCK AND RELATED SECURITY HOLDER 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, 1997
Limited Partnership Interests 1,551
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 $1,465,537, $1,723,227, and $2,374,015 for the years ended December 31, 1997, 1996 and 1995, respectively. The decrease in revenues between 1997, 1996 and 1995 is partially caused by the decrease in rental income generated from equipment under operating leases. Rental income from the leasing of computer equipment accounted for 96% of total income in 1997, and 88% of total income in both 1996 and 1995. In 1997, rental income decreased by approximately $387,000 because of equipment which came off lease and was re-leased at lower rental rates or sold. This decrease, however, was mitigated by approximately $280,000 of rental income generated from equipment under operating leases purchased during 1997, as well as rental income from 1996 equipment purchases for which a full year of rental income was earned in 1997 and only a partial year was earned in 1996. In 1996, rental income decreased by approximately $705,000 because of equipment which came off lease and was re-leased at lower rental rates or sold. This decrease, however, was reduced by approximately $126,000 of rental income generated from equipment purchased in 1996 as well as rental income from 1995 equipment purchases for which a full year of rental income was earned in 1996 and only a partial year was earned in 1995. Additionally, the Fund did not record a net gain on sale of equipment for the twelve months ended December 31, 1997 but did recognize $149,687 and $182,063 of net gain on sale of equipment for the twelve months ended December 31, 1996 and 1995, respectively. The decrease in net gain on sale of equipment contributed to the decrease in total revenues for 1997 and 1996.
Expenses were $1,019,953, $1,183,848, and $1,635,579 for the years ended December 31, 1997, 1996 and 1995, respectively. Depreciation expense comprised 78%, 66% and 75% of total expenses in 1997, 1996 and 1995, respectively. The decrease in write-down of equipment to net realizable value was the primary cause of the decrease in total expenses in 1997 but in 1996, the decrease in depreciation expense was the predominant reason for the decrease in total expenses. Depreciation expense increased in 1997 because of new equipment purchased during the year. However, depreciation expense decreased in 1996 as a result of equipment which came off lease and was terminated or sold. 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 re-leasing of equipment, technological developments and information provided in third party publications. In 1997, 1996 and 1995, approximately $38,000, $157,000 and $94,000, respectively, was charged to write-down of equipment to net realizable value which contributed to the overall decrease in total expenses in 1997 and reduced the overall decrease in total expenses in 1996. In accordance with Generally Accepted Accounting Principles, the Fund writes down its rental equipment to its estimated net realizable value when the amounts are reasonably estimated and only recognizes gains upon actual sales of its equipment. Any future losses are dependent upon unanticipated technological developments affecting the computer equipment industry in subsequent years.
The Fund's net income was $445,584, $539,379 and $738,436 for the years ended December 31, 1997, 1996 and 1995, respectively. The earnings per equivalent limited partnership unit, after earnings allocated to the General Partner, were $42.54, $23.17 and $56.98 for the years ended December 31, 1997, 1996 and 1995, respectively. The weighted average number of equivalent limited partnership units outstanding were 10,145, 10,433 and 12,305 for 1997, 1996 and 1995, respectively.
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
Results of Operations (Continued)
The Fund generated cash from operations of $1,293,395, $1,324,116 and $1,871,187 for the purpose of determining cash available for distribution and declared distributions of $400,000, $810,707 and $1,865,582 to partners for the years ended December 31, 1997, 1996 and 1995, respectively. For financial statement purposes, the Fund records cash distributions to partners on a cash basis in the period in which they are paid. During 1996, the General Partner revised its policy regarding distributions so that the distributions more accurately reflect the net income of the Fund over the most recent twelve months.
Analysis of Financial Condition
The Fund will continue to purchase computer equipment for lease with cash available from operations which is not distributed to partners. During the years ended December 31, 1997, 1996 and 1995, the Fund purchased equipment of $457,785, $450,749 and $1,533,346, respectively.
In February and March 1998, the Fund purchased $126,079 and $283,560 of equipment subject to an operating lease and a direct financing lease, respectively with initial lease terms of 58 and 60 months, 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. The Directors and Executive Officers of FLPMI are:
FREDDIE M. KOTEK, age 41, Chairman of the Board of Directors, President and Chief Executive Officer of FLPMI since September 1995 and Senior Vice President of Resource America, Inc. since 1995. President of Resource Leasing, Inc. since September 1995. Executive Vice President of Resource Properties, Inc. (a wholly owned subsidiary of Resource America, Inc.) since 1993. First Vice President of Royal Alliance Associates from 1991 to 1993. Senior Vice President and Chief Financial Officer of Paine Webber Properties from 1990 to 1991.
MICHAEL L. STAINES, age 48, Director and Secretary of FLPMI since September 1995 and Senior Vice President and Secretary of Resource America, Inc. since 1989.
SCOTT F. SCHAEFFER, age 35, Director of FLPMI since September 1995 and Senior Vice President of Resource America, Inc. since 1995. Vice President-Real Estate of Resource America, Inc. and President of Resource Properties, Inc. (a wholly owned subsidiary of Resource America, Inc.) since 1992. Vice President of the Dover Group, Ltd. (a real estate investment company) from 1985 to 1992.
Others:
STEPHEN P. CASO, age 42, Vice President and General Counsel of FLPMI since 1992.
MARIANNE T. SCHUSTER, age 39, Vice President and Controller of FLPMI since 1984.
KRISTIN L. CHRISTMAN, age 30, 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, 1997:
Name of Individual or Capacities in Number in Group Which Served Compensation
F.L. Partnership Management, Inc. General Partner $82,217 (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, 1997, 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 distributions 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 subsequent 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, 1997, the Fund was charged $82,217 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, 1997, the General Partner received $14,000 of cash distributions.
The Fund incurred $61,188 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 1997.
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.
Freddie M. Kotek By: ___________________________ Freddie M. Kotek, Chairman and President
Dated March 26, 1998
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
Freddie M. Kotek ____________________________ Chairman of the Board of Directors 3-26-98 Freddie M. Kotek and President of F.L. Partnership Management, Inc. (Principal Executive Officer)
Michael L. Staines ____________________________ Director of F.L. Partnership 3-26-98
Marianne T. Schuster ____________________________ Vice President and Controller 3-26-98 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, 1997 and 1996
Statements of Operations for the years ended December 31, 1997, 1996 and 1995
Statements of Partners' Capital for the years ended December 31, 1997, 1996 and 1995
Statements of Cash Flows for the years ended December 31, 1997, 1996 and 1995
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, 1997 and 1996, and the related statements of operations, changes in partners' capital and cash flows for each of the three years in the period ending December 31, 1997. 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 generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles 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, 1997 and 1996, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 1997 in conformity with generally accepted accounting principles.
Grant Thornton LLP Philadelphia, Pennsylvania February 17, 1998
FIDELITY LEASING INCOME FUND IV, L.P.
BALANCE SHEETS
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. 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 computer equipment including printers, tape storage devices, data communi- cations equipment, computer terminals, technical workstations as well as networking 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 concentrations of credit risk consist principally of temporary cash investments. The Fund places its temporary investments in bank repurchase agreements.
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
Effective January 1, 1996, the Fund adopted SFAS No. 121 "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of." This new standard provides guidance on when to recognize and how to measure impairment losses of long-lived assets and how to value long-lived assets to be disposed of. The adoption of SFAS No. 121 had no impact on the net income of the Fund.
Equipment Held for Sale or Lease
Equipment held for sale or lease is carried at its estimated net realizable value.
Use of Estimates
In preparing financial statements in conformity with Generally Accepted Accounting Principles, 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.
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Accounting for Leases
The Fund's leasing operations consist only of operating leases. The cost of the leased equipment is recorded as an asset and depreciated on a straight-line basis over its estimated useful life, up to six years. Acquisition fees associated with lease placements are allocated to equipment when purchased and depreciated as part of equipment cost. Rental income consists primarily 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.
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, technological developments and information provided in third party publications. Based upon this review, the Fund recorded an adjustment of approximately $12,000 and $40,000 or $1.18 and $3.83 per equivalent limited partnership unit to write down its rental equipment in the fourth quarter of 1997 and 1996, respectively. There was no write-down of equipment to net realizable value in the fourth quarter of 1995.
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. During the year ended December 31, 1996, the General Partner received cash distributions of $278,992 representing a portion of the 3.5% of cash distributions which the General Partner was entitled to receive in accordance with the Partnership Agreement for prior periods.
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 primarily of computer equipment under operating leases. A majority of the equipment was manufactured by IBM. 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 15 to 60 months.
In accordance with Generally Accepted Accounting Principles, the Fund writes down its rental equipment to its estimated net realizable value when the amounts are reasonably estimated and only recognizes gains upon actual sale of its rental equipment. As a result, in 1997, 1996 and 1995, approximately $38,000, $157,000 and $94,000, respectively was charged to write-down of equipment to net realizable value.
The future approximate minimum rentals to be received on noncancellable operating leases as of December 31 are as follows:
1998 $618,000 1999 225,000 ________ $843,000 ========
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
4. EQUIPMENT LEASED (Continued)
In addition, in January and February 1998, the Fund purchased $126,079 and $283,560 of equipment subject to an operating lease and a direct financing lease, respectively with initial lease terms of 58 and 60 months, respectively. The future approximate minimum rentals to be received on the noncancellable operating lease are $52,780 in 1998, $57,579 in 1999, $57,579 in 2000, $57,579 in 2001 and $52,780 in 2002. The future approximate minimum rentals to be received on the direct financing lease are $61,884 in 1998, $67,510 in 1999, $67,510 in 2000, $67,510 in 2001 and $5,626 in 2002.
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 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 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:
1997 1996 1995
Management fee $82,217 $88,618 $123,347 Reimbursable costs 61,188 73,610 119,192
During 1997, the Fund maintained its checking and investment accounts in Jefferson Bank, a subsidiary of JeffBanks, Inc. in which the Chairman of Resource America, Inc. serves as a director.
Amounts due from related parties at December 31, 1997 and 1996 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.
Amounts due to related parties at December 31, 1997 and 1996 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.
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
6. MAJOR CUSTOMERS
For the year ended December 31, 1997, three customers accounted for 31%, 27% and 15% of the Fund's rental income and two customers generated 10% each of the Fund's rental income. For the year ended December 31, 1996, four customers accounted for 28%, 21%, 15%, and 13% of the Fund's rental income. For the year ended December 31, 1995, two customers accounted for 18% each, one customer accounted for 17% and two customers generated 13% 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 1998 for the three months ended December 31, 1997, to all admitted partners as of December 31, 1997.