DUK » Topics » 16. Preferred and Preference Stock at Duke Energy

This excerpt taken from the DUK 10-K filed Feb 27, 2009.

17. Preferred and Preference Stock at Duke Energy

As of December 31, 2008 and 2007, there were 44 million authorized shares of preferred stock, par value $0.001 per share, with no such preferred shares outstanding.

Preferred and Preference Stock of Duke Energy’s Subsidiaries. In connection with the Westcoast Energy, Inc. (Westcoast) acquisition in 2002, Duke Energy assumed approximately $411 million of authorized and issued redeemable preferred and preference shares at Westcoast and Union Gas. The approximate $225 million remaining obligation associated with these preferred and preference shares was transferred to Spectra Energy in connection with the spin-off of the natural gas businesses on January 2, 2007.

Additionally, in May 2006, Duke Energy redeemed, at par plus accrued and unpaid dividends, approximately $11 million of authorized and issued Duke Energy Indiana preferred stock, which had been acquired by Duke Energy in connection with the Cinergy merger in April 2006.

 

This excerpt taken from the DUK 10-K filed Feb 29, 2008.

16. Preferred and Preference Stock at Duke Energy

As of December 31, 2007 and 2006, there were 44 million authorized shares of preferred stock, par value $0.001 per share, with no such preferred shares outstanding.

Preferred and Preference Stock of Duke Energy’s Subsidiaries. In connection with the Westcoast Energy, Inc. (Westcoast) acquisition in 2002, Duke Energy assumed approximately $411 million of authorized and issued redeemable preferred and preference shares at Westcoast and Union Gas. Since these preferred and preference shares were redeemable at the option of holder, as well as Westcoast and Union Gas, these preferred and preference shares did not meet the definition of a mandatorily redeemable instrument under SFAS No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity.” As such, these preferred and preference shares were considered contingently redeemable shares and the balance of approximately $225 million was included in Minority Interests on the Consolidated Balance Sheets at December 31, 2006. The obligation associated with these preferred and preference shares was transferred to Spectra Energy in connection with the spin-off of the natural gas businesses on January 2, 2007.

Additionally, in May 2006, Duke Energy redeemed, at par plus accrued and unpaid dividends, approximately $11 million of authorized and issued Duke Energy Indiana preferred stock, which had been acquired by Duke Energy in connection with the Cinergy merger in April 2006.

 

This excerpt taken from the DUK 8-K filed Oct 1, 2007.

16. Preferred and Preference Stock at Duke Energy

As of December 31, 2006, as a result of the corporate restructuring in connection with the Cinergy merger, there were 44 million authorized shares of preferred stock, par value $0.001 per share, with no such preferred shares outstanding.

As of December 31, 2005, there were no shares of preferred and preference stock outstanding at Duke Energy.

Preferred Stock without Sinking Fund Requirements. In December 2005, Duke Energy redeemed all Preferred and Preference stock without Sinking Fund Requirements for approximately $137 million and recognized an immaterial loss on the redemption.

 

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PART II

DUKE ENERGY CORPORATION

Notes To Consolidated Financial Statements—(Continued)

 

Preferred and Preference Stock of Duke Energy’s Subsidiaries. In connection with the Westcoast acquisition in 2002, Duke Energy assumed approximately $411 million of authorized and issued redeemable preferred and preference shares at Westcoast and Union Gas. These preferred and preference shares at Westcoast and Union Gas totaled $225 million at both December 31, 2006 and 2005. Since these preferred and preference shares are redeemable at the option of holder, as well as Westcoast and Union Gas, these preferred and preference shares do not meet the definition of a mandatorily redeemable instrument under SFAS No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity.” As such, these preferred and preference shares are considered contingently redeemable shares and are included in Minority Interests on the Consolidated Balance Sheets.

Additionally, in connection with the Cinergy merger in April 2006, Duke Energy assumed approximately $11 million of authorized and issued preferred stock at Duke Energy Indiana. All outstanding shares of Duke Energy Indiana preferred stock were redeemed in May 2006 at par, plus accrued and unpaid dividends.

 

This excerpt taken from the DUK 10-K filed Mar 1, 2007.

16. Preferred and Preference Stock at Duke Energy

 

As of December 31, 2006, as a result of the corporate restructuring in connection with the Cinergy merger, there were 44 million authorized shares of preferred stock, par value $0.001 per share, with no such preferred shares outstanding.

As of December 31, 2005, there were no shares of preferred and preference stock outstanding at Duke Energy.

Preferred Stock without Sinking Fund Requirements. In December 2005, Duke Energy redeemed all Preferred and Preference stock without Sinking Fund Requirements for approximately $137 million and recognized an immaterial loss on the redemption.

Preferred and Preference Stock of Duke Energy’s Subsidiaries. In connection with the Westcoast acquisition in 2002, Duke Energy assumed approximately $411 million of authorized and issued redeemable preferred and preference shares at Westcoast and Union Gas. These preferred and preference shares at Westcoast and Union Gas totaled $225 million at both December 31, 2006 and 2005. Since these preferred and preference shares are redeemable at the option of holder, as well as Westcoast and Union Gas, these preferred and preference shares do not meet the definition of a mandatorily redeemable instrument under SFAS No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity.” As such, these preferred and preference shares are considered contingently redeemable shares and are included in Minority Interests on the Consolidated Balance Sheets.

Additionally, in connection with the Cinergy merger in April 2006, Duke Energy assumed approximately $11 million of authorized and issued preferred stock at Duke Energy Indiana. All outstanding shares of Duke Energy Indiana preferred stock were redeemed in May 2006 at par, plus accrued and unpaid dividends.

 

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