Statements of Consolidated Cash Flows. For purposes of reporting cash flows, the Company considers cash equivalents to be short-term, highly liquid investments readily convertible to cash.
Statements of Consolidated Cash Flows. For purposes of reporting cash flows, CERC considers cash equivalents to be short-term, highly liquid investments with maturities of three months or less from the date of purchase. CENTERPOINT ENERGY RESOURCES CORP. AND SUBSIDIARIES (AN INDIRECT WHOLLY OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) (n) CHANGES IN ACCOUNTING PRINCIPLES AND NEW ACCOUNTING PRONOUNCEMENTS In July 2001, the FASB issued SFAS No. 141, "Business Combinations" (SFAS No. 141). SFAS No. 141 requires business combinations initiated after June 30, 2001 to be accounted for using the purchase method of accounting and broadens the criteria for recording intangible assets separate from goodwill. Recorded goodwill and intangibles will be evaluated against these new criteria and may result in certain intangibles being transferred to goodwill, or alternatively, amounts initially recorded as goodwill may be separately identified and recognized apart from goodwill. CERC adopted the provisions of the statement which apply to goodwill and intangible assets acquired prior to June 30, 2001 on January 1, 2002. The adoption of SFAS No. 141 did not have any impact on CERC's historical results of operations or financial position. In June 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement Obligations" (SFAS No. 143). SFAS No. 143 requires the fair value of an asset retirement obligation to be recognized as a liability is incurred and capitalized as part of the cost of the related tangible long-lived assets. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Retirement obligations associated with long-lived assets included within the scope of SFAS No. 143 are those for which a legal obligation exists under enacted laws, statutes and written or oral contracts, including obligations arising under the doctrine of promissory estoppel. SFAS No. 143 is effective for fiscal years beginning after June 15, 2002, with earlier application encouraged. SFAS No. 143 requires entities to record a cumulative effect of change in accounting principle in the income statement in the period of adoption. CERC adopted SFAS No. 143 on January 1, 2003. CERC has completed an assessment of the applicability and implications of SFAS No. 143 and has identified no asset retirement obligations. CERC's rate-regulated businesses have previously recognized remova...
Statements of Consolidated Cash Flows. For purposes of reporting cash flows, the Company considers cash equivalents to be short-term, highly liquid investments with maturities of three months or less from the date of purchase. In connection with the issuance of transition bonds in October 2001 and December 2005, the Company was required to establish restricted cash accounts to collateralize the bonds that were issued in these financing transactions. These restricted cash accounts are not available for withdrawal until the maturity of the bonds. Cash and Cash Equivalents does not include restricted cash. For additional information regarding the December 2005 securitization financing, see Notes 4(a) and 8(a).
Statements of Consolidated Cash Flows. 37 Notes to Consolidated Financial Statements.......................... 38-67 Quarterly Information............... 68 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE................ 93 PART THREE ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT...................... 93 ITEM 11. EXECUTIVE COMPENSATION.............. 93 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.... 93 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS........................ 93 PART FOUR ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8- K .................................. 97 Condensed Financial Statements (Parent Company Only)............... 69-72 Reports on Form 8-K................. 97 List of Exhibits.................... 97-99 1997 Annual Report 100 INTRODUCTION [LOGO OF XXXXXXX XXXXX APPEARS HERE] - -------------------------------------------------------------------------------- Our $1.9 billion in net earnings for 1997 were the highest in our history, up 18% from the previous record of $1.6 billion the year before, and represent a return on common equity of 26.8%. In recognition of sustained earnings growth, in April 1997 our Board of Directors approved a two-for-one common stock split and a 33% increase in the regular quarterly dividend, making 1997 the sixth consecutive year in which dividends increased. On the following pages, we present Xxxxxxx Xxxxx'x financial results for 1997 in detail. A companion publication, the 1997 Annual Review, contains our Letter to Shareholders and Clients setting the events and accomplishments of last year in the context of a thorough discussion of our strategy. We urge you to read these two publications in tandem, since both strategic vision and financial strength will continue to be critical elements for success during a period of extraordinary change in the global financial services industry. /s/ Xxxxx X. Xxxxxxxx /s/ Xxxxxxx X. Xxxxxxx, Xx. XXXXX X. XXXXXXXX XXXXXXX X. XXXXXXX, XX. Chairman and Chief Executive Officer President and Chief Operating Officer February 26, 1998 1997 Annual Report I TABLE OF CONTENTS [LOGO OF XXXXXXX XXXXX APPEARS HERE] - -------------------------------------------------------------------------------- SELECTED FINANCIAL DATA 3 MANAGEMENT'S DISCUSSION OF FINANCIAL RESPONSIBILITY 4 MANAGEMENT'S DISCUSSION AND ANALYSIS 5 INDEPENDENT AUDITORS' REPORT 30 CONSOLIDATED FINANCIAL STATEMENTS Statements of Consolid...
