8-KOther EventsExhibits & Filings

CENTERPOINT ENERGY INC 8-K Report, Corporate Update (Dec 7, 2004)

Filed December 7, 2004For Securities:CNP

Summary

CenterPoint Energy, Inc. (CNP) filed an 8-K on December 7, 2004, to report on reclassifications of its financial statements. These adjustments are necessary to present its electric generation operations, known as Texas Genco, as discontinued operations. This change follows the previously announced pending sale of these operations on July 21, 2004, and aligns with Statement of Financial Accounting Standards No. 144 regarding the disposal of long-lived assets. The reclassifications impact historical consolidated financial statements, selected financial data, and the Management's Discussion and Analysis (MD&A) as reported in the company's March 12, 2004, Form 10-K. Importantly, these adjustments did not affect the reported net income for any of the five fiscal years ending December 31, 2003. The filing includes updated financial statement schedules and financial disclosures.

Key Highlights

  • 1CenterPoint Energy is reclassifying its Texas Genco electric generation operations as discontinued operations.
  • 2This reclassification is in preparation for the pending sale of Texas Genco, announced on July 21, 2004.
  • 3The adjustments are in compliance with Statement of Financial Accounting Standards No. 144 concerning the disposal of long-lived assets.
  • 4Reclassifications affect historical financial statements, selected financial data, and MD&A previously reported.
  • 5Net income for the five years ended December 31, 2003, remains unchanged by these reclassifications.
  • 6Updated financial statement schedules are included as part of the filing.

Frequently Asked Questions

This 8-K filing is primarily to report on the reclassification of CenterPoint Energy's electric generation operations (Texas Genco) as discontinued operations in its historical financial statements. This is a step taken in anticipation of the pending sale of these assets.

No, the filing explicitly states that these reclassifications did not affect net income for any of the five years ended December 31, 2003. The change is in how the operations are presented, not in the overall profitability of the company during those periods.

Discontinued operations refer to a component of an entity that has been disposed of or is classified as held for sale and represents a separate major line of business or geographical area of operations. Presenting them as discontinued operations allows investors to better understand the ongoing performance of the company's core business.

The filing notes that financial statement disclosures, management estimates, and forward-looking statements have not been updated to reflect developments subsequent to December 31, 2003. Investors should refer to subsequent filings for more current information.