SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 11, 2002
KANSAS CITY SOUTHERN
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(Exact name of company as specified in its charter)
DELAWARE 1-4717 44-0663509
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State or other jurisdiction (Commission file (IRS Employer
of incorporation) number) Identification Number)
427 West 12th Street, Kansas City, Missouri 64105
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(Address of principal executive offices) (Zip Code)
Company's telephone number, including area code:
(816) 983 - 1303
Not Applicable
(Former name or former address if changed since last report)
ITEM 5. OTHER EVENTS
ADOPTION OF STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 142.
Effective January 1, 2002, Kansas City Southern ("KCS" or the "Company") adopted
Statement of Financial Accounting Standards No. 142, "Goodwill and Other
Intangible Assets" ("SFAS 142"). SFAS 142 provides, among other things, that
goodwill with an indefinite life shall no longer be amortized, but shall be
evaluated for impairment on an annual basis. SFAS 142 also requires various
transitional disclosures until all periods presented reflect the provisions of
SFAS 142. These transitional disclosures include the presentation of income
before extraordinary items, net income and earnings per share information
adjusted to exclude amortization expense (including the related income tax
effects) for all periods presented. A reconciliation of reported income from
continuing operations to adjusted income from continuing operations, reported
income before extraordinary items to adjusted income before extraordinary items,
reported net income to adjusted net income and reported earnings per share to
adjusted earnings per share are presented in the table below.
Year Ended December 31,
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1999 2000 2001
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Reported income from continuing operations $ 10.2 $ 25.4 $ 31.1
Add back: Goodwill amortization 0.6 0.6 0.6
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Adjusted income before extraordinary items $ 10.8 $ 26.0 $ 31.7
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Reported income from discontinued operations $ 313.1 $ 363.8 $ -
Add back: Goodwill amortization 9.7 5.7 -
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Adjusted income before extraordinary items $ 322.8 $ 369.5 $ -
-------- --------- ---------
Reported income before extraordinary items $ 323.3 $ 389.2 $ 31.1
Add back: Goodwill amortization 10.3 6.3 0.6
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Adjusted income before extraordinary items $ 333.6 $ 395.5 $ 31.7
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Reported net income $ 323.3 $ 380.5 $ 30.7
Add back: Goodwill amortization 10.3 6.3 0.6
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Adjusted net income $ 333.6 $ 386.8 $ 31.3
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Reported diluted earnings per share from
continuing operations $ 0.17 $ 0.43 $ 0.51
Add back: Goodwill amortization 0.01 0.01 0.01
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Adjusted diluted earnings per share from
continuing operations $ 0.18 $ 0.44 $ 0.52
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Reported diluted earnings per share from
discontinued operations $ 5.40 $ 6.14 $ -
Add back: Goodwill amortization 0.17 0.10 -
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Adjusted diluted earnings per share from
discontinued operations $ 5.57 $ 6.24 $ -
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Reported diluted earnings per share - net income $ 5.57 $ 6.42 $ 0.50
Add back: Goodwill amortization 0.18 0.11 0.01
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Adjusted diluted earnings per share - net income $ 5.75 $ 6.53 $ 0.51
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this Report to be signed on its behalf by the undersigned
hereunto duly authorized.
Kansas City Southern
Date: July 11, 2002 By: /s/ Louis G. Van Horn
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Louis G. Van Horn
Vice President and Comptroller
(Principal Accounting Officer)