8-KFinancial EventsExhibits & Filings

CENTENE CORP 8-K Report, Material Impairment (Dec 12, 2007)

Filed December 12, 2007For Securities:CNC

Summary

Centene Corporation (CNC) filed a Form 8-K on December 12, 2007, to report a material impairment charge expected in the fourth quarter of 2007. The company announced a pre-tax charge of $12 million, with the majority, approximately $8 million, stemming from the impairment of real estate assets related to a previously planned headquarters development in Clayton, Missouri. This filing signals a re-evaluation of the company's real estate strategy and potential impact on its financial performance for the quarter. Investors should note that this charge is a non-cash accounting item related to the devaluation of assets, not an operational cash outflow. Further details regarding this charge were previously disclosed in a press release on December 6, 2007.

Key Highlights

  • 1Centene Corporation announced a $12 million pre-tax charge for Q4 2007.
  • 2Approximately $8 million of the charge is due to the impairment of real estate assets.
  • 3The impaired real estate was intended for a previously planned headquarters in Clayton, Missouri.
  • 4This filing is a Form 8-K reporting a material impairment.
  • 5The charge relates to the valuation of assets and is not an operational expense.
  • 6Details were initially released via press release on December 6, 2007.

Frequently Asked Questions

The $12 million pre-tax charge represents an accounting adjustment for the impairment of certain assets, indicating that their carrying value on the company's books exceeds their current fair value. For Centene, this primarily relates to real estate intended for a former headquarters development.

This charge will reduce Centene's net income for the fourth quarter of 2007. It's important to note that while it impacts profitability, it is largely a non-cash charge and doesn't represent an immediate cash outflow.

The impairment charge suggests that the planned headquarters development in Clayton, Missouri, is no longer proceeding as originally envisioned, leading to the write-down of the associated real estate asset values.

The details of this charge were first announced in a press release issued by Centene Corporation on December 6, 2007. This Form 8-K filing incorporates that announcement by reference.