8-KOther Events

CENTERPOINT ENERGY INC 8-K Report (May 12, 2003)

Filed May 12, 2003For Securities:CNP

Summary

This Form 8-K filing from CenterPoint Energy, Inc. (CNP) on May 12, 2003, primarily details accounting adjustments and reclassifications made to its historical financial statements for the year ended December 31, 2002, and prior periods. These adjustments are based on newly adopted accounting standards and the disposal of certain assets. While these changes were made for reporting clarity and compliance, the company explicitly states they did not impact net income for the five years preceding December 31, 2002. Investors should note the reclassification of Latin America operations as discontinued, reflecting a sale subsequent to the 2002 year-end. Additionally, the filing addresses the accounting for debt extinguishment and derivative contracts, as well as the pro-forma impact of adopting SFAS No. 143 concerning asset retirement obligations. It is crucial for investors to understand that the financial information presented does not incorporate any developments or changes that have occurred since December 31, 2002.

Key Highlights

  • 1CenterPoint Energy is reporting reclassifications to its historical financial statements for the year ended December 31, 2002.
  • 2Latin America operations are being presented as discontinued operations due to a sale after December 31, 2002, in accordance with SFAS No. 144.
  • 3Adjustments related to the extinguishment of debt in Q4 2002 are being reclassified as interest expense per SFAS No. 145.
  • 4The filing addresses accounting for derivative contracts held for trading purposes under EITF Issue No. 02-03.
  • 5Pro-forma financial statement effects are presented for the adoption of SFAS No. 143 (Accounting for Asset Retirement Obligations) as if adopted from January 1, 2000.
  • 6These specific reclassifications and adjustments did not affect the company's net income for the five years ending December 31, 2002.
  • 7Financial disclosures in this report are not updated for events occurring after December 31, 2002.

Frequently Asked Questions

The main purpose of this 8-K filing is to report accounting adjustments and reclassifications to CenterPoint Energy's historical financial statements, primarily for the year ended December 31, 2002, to comply with new accounting standards and to reflect the disposal of certain operations.

No, the filing explicitly states that the discussed reclassifications and adjustments did not affect net income for any of the five years ended December 31, 2002.

Presenting these operations as 'discontinued' means that CenterPoint Energy has sold, or is in the process of selling, these assets. They are now reported separately on the financial statements to provide a clearer view of the company's ongoing, or 'continuing', operations.

No, the financial statement disclosures and forward-looking statements in this report have not been updated to reflect any developments subsequent to December 31, 2002. Investors should be aware that this is historical financial information as of that date.