What is Topic D-95 and why is ONEOK adopting it?

Topic D-95 is an announcement by the Financial Accounting Standards Board (FASB) Staff that provides an interpretation of Statement of Financial Accounting Standards No. 128, 'Earnings per Share.' It requires a revision to the method of calculating EPS for certain securities, including convertible and participating ones like ONEOK's Series A Convertible Preferred Stock, to ensure more accurate and consistent reporting.

How will the two-for-one stock split affect my investment?

A two-for-one stock split means that for every share of common stock you own, you will receive one additional share. This will double the number of shares you hold, but the total market value of your investment should remain the same immediately after the split, as the price per share will be halved. This is often done to make the stock price more accessible to a wider range of investors.

Will the new EPS calculations affect the value of my Series A Convertible Preferred Stock?

The new EPS calculation methodology under Topic D-95 is a change in accounting and reporting, not a change in the underlying rights or value of your Series A Convertible Preferred Stock. While the reported EPS will be adjusted, the economic rights associated with your preferred stock remain the same. The purpose is to provide a more accurate reflection of earnings attributable to common shareholders.

Where can I find the revised projected EPS figures?

The 8-K filing on May 25, 2001, specifically includes Exhibit 99, titled 'Summary of Revisions to Projected Earnings per Share.' This exhibit contains the previously reported projected EPS, the projections adjusted for Topic D-95, and projections that also give effect to the two-for-one stock split and Topic D-95.

OKE 8-K SEC Disclosure — May 25, 2001

Summary

ONEOK Inc. filed a Form 8-K on May 25, 2001, to report on significant revisions to its projected Earnings per Share (EPS) computation. These revisions are driven by a new accounting interpretation, Emerging Issues Task Force Topic D-95, which mandates changes in how EPS is calculated for convertible and participating securities, specifically impacting ONEOK's Series A Convertible Preferred Stock. Additionally, the report details the upcoming two-for-one common stock split, approved by shareholders on May 17, 2001, which is set to be distributed on June 11, 2001. The filing provides updated projected EPS figures to reflect both the accounting changes mandated by Topic D-95 and the anticipated impact of the stock split. Investors should pay close attention to these revised EPS figures as they represent a more accurate and compliant view of the company's earnings performance. The stock split, while not changing the intrinsic value of the company, will increase the number of outstanding shares and adjust the per-share price accordingly.

Key Highlights

1ONEOK is revising its EPS calculation methodology to comply with new Financial Accounting Standards Board Staff guidance (Topic D-95).
2The revision specifically impacts the EPS calculation for convertible and participating securities, including ONEOK's Series A Convertible Preferred Stock.
3Shareholders approved a two-for-one common stock split on May 17, 2001.
4The stock split is expected to be distributed to shareholders of record on May 23, 2001, with distribution on June 11, 2001.
5The 8-K filing includes updated projected EPS figures reflecting both the accounting changes and the stock split.
6The filing is effective as of May 24, 2001, and was filed on May 25, 2001.

ONEOK INC /NEW/ 8-K Report (May 25, 2001)

Summary

Key Highlights

Frequently Asked Questions