01—Abstract
Summary
Summary of the 10-K/A filed October 18, 2004. Cited figures are marked; the original filing is the authoritative source.
This filing is an amendment to Williams Companies, Inc.'s (WMB) 2003 Form 10-K, specifically addressing and clarifying Item 9A regarding Disclosure Controls and Procedures.
The amendment aims to correct any misinterpretation that the company's disclosure controls were qualified or limited, reaffirming management's conclusion that these controls are effective at a reasonable assurance level as of the end of the fiscal year 2003. No other information from the original 10-K has been updated unless rendered incorrect by the passage of time. The amendment also touches upon prior period adjustments within the Power business, primarily related to the accounting treatment of derivative contract terminations from 2001.
While these adjustments were identified and corrected in 2003, leading to process improvements, management reiterates its overall conclusion of control effectiveness. Investors should note that this filing focuses on the integrity of financial reporting and disclosure, rather than introducing new financial performance data.
02—Key points
Key Highlights
- Amendment clarifies the effectiveness of Williams Companies' disclosure controls and procedures for fiscal year 2003.
- Management, including CEO and CFO, concluded that Disclosure Controls are effective at a reasonable assurance level.
- The filing explicitly states that no other information in the original 10-K has been updated unless time has made it incorrect.
- Prior period adjustments were made in the Power business related to derivative contract terminations from 2001.
- These Power business adjustments led to identified improvements in accounting and monitoring processes.
- Management concludes that current controls are effective at a reasonable assurance level despite prior period adjustments.
- No material changes to internal controls over financial reporting occurred during the fourth fiscal quarter of 2003.
03—Questions
Frequently Asked Questions
What is the primary purpose of this amendment to the 10-K filing?
The primary purpose of this amendment (10-K/A) is to clarify and reaffirm management's conclusion that Williams Companies' disclosure controls and procedures were effective at a reasonable assurance level as of the end of the fiscal year 2003. The original filing may have contained language that could be misinterpreted as a qualification or limitation on this conclusion.
Were there any significant financial restatements due to the identified issues in the Power business?
While the filing mentions prior period adjustments related to derivative contract terminations in the Power business, it does not explicitly state the financial impact or if a formal restatement occurred. It notes that these adjustments were identified in 2003, leading to process improvements, and management still concluded overall control effectiveness.
Does this filing provide updated financial performance or operational data for 2004?
No, this filing is an amendment to the 2003 annual report and primarily focuses on clarifying disclosure controls. It explicitly states that information in the original 10-K has not been updated unless time rendered it incorrect. Investors should refer to subsequent quarterly reports (Form 10-Q) for more recent financial performance information.
What are the inherent limitations of internal controls mentioned in the filing?
The filing acknowledges that no control system can provide absolute assurance against all errors and fraud due to inherent limitations. These include faulty decision-making, simple errors or mistakes, circumvention by individuals or collusion, management override, and reliance on assumptions about future events. Therefore, control systems provide reasonable, not absolute, assurance.
04—Continue