8-KOther Events

SIMON PROPERTY GROUP INC. 8-K Report (Aug 11, 2004)

Filed August 11, 2004For Securities:SPGSPG-PJ

Summary

Simon Property Group, Inc. (SPG) filed an 8-K on August 10, 2004, to re-issue historical financial statements for the fiscal years ended December 31, 2003, and 2002. This re-issuance is in response to Statement of Financial Accounting Standards No. 144 (SFAS 144) regarding accounting for the impairment or disposal of long-lived assets. The primary driver for this reclassification is the sale of a property during the quarter ended June 30, 2004. In compliance with SFAS 144, revenue, expenses, and the gain on the sale of this property are now reported as discontinued operations for all presented periods in their June 30, 2004 quarterly report, including the comparable prior year period. This updated financial information, along with the re-issued Management's Discussion and Analysis (MD&A) from their 2003 10-K, is attached as Exhibit 99.1 to this 8-K.

Key Highlights

  • 1Simon Property Group (SPG) is re-issuing historical financial statements for fiscal years 2003 and 2002.
  • 2The re-issuance is due to compliance with SFAS 144 concerning the accounting for disposal of long-lived assets.
  • 3A property was sold during the quarter ended June 30, 2004.
  • 4The financial results of the sold property are now reported as 'discontinued operations'.
  • 5This reclassification affects all periods presented in the June 30, 2004 quarterly report and prior annual statements incorporated by reference.
  • 6The reclassification has no impact on the reported net income available to common shareholders.
  • 7Updated financial information and MD&A are included as Exhibit 99.1.

Frequently Asked Questions

Simon Property Group is re-issuing its historical financial statements for the fiscal years ended December 31, 2003, and 2002 to comply with Statement of Financial Accounting Standards No. 144 (SFAS 144). This standard requires that assets held for sale and their related results be presented as 'discontinued operations'.

The trigger for this reclassification was the sale of a property during the quarter ended June 30, 2004. Under SFAS 144, the financial performance associated with this sold property must be segregated and presented separately as discontinued operations.

No, the filing explicitly states that this reclassification to discontinued operations has no effect on Simon Property's reported net income available to common shareholders. It's a change in presentation, not a change in overall profitability for the periods presented.

Exhibit 99.1 contains updated financial information for the years ended December 31, 2003, 2002, and 2001, reflecting the property sale as discontinued operations. It also includes the re-issued Management's Discussion and Analysis (MD&A) that originally accompanied the company's 2003 Form 10-K.