8-K 1 eightkjul17.htm CURRENT REPORT Current Report
UNITED STATES
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 17, 2006



 
 
(Commission File
Number)
 
Exact names of registrants as specified in their charters, address of principal executive offices, telephone number and state of incorporation
 
(IRS Employer
Identification No.)
 
 
 
1-15929
PROGRESS ENERGY, INC.
56-2155481
 
410 S. Wilmington Street
 
 
Raleigh, North Carolina 27601-1748
 
 
Telephone: (919) 546-6111
 
 
State of Incorporation: North Carolina
 



None
(Former Name or Former Address, if Changed Since Last Report)



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR240.13e-4(c))



SECTION 2 - FINANCIAL INFORMATION

Item 2.06 Material Impairments.

In accordance with the accounting standards governing the valuation of assets, Progress Energy, Inc. (the “Company”) monitors the carrying value of its assets. On July 12, 2006, the Company completed an impairment test of the synthetic fuel and other related long-lived assets owned by various indirect subsidiaries. Upon completion of the impairment test, Progress Energy recorded a second quarter noncash after-tax asset impairment charge of $54 million. This amount represents the entirety of the asset carrying value of the synthetic fuel manufacturing facilities, as well as a portion of the asset carrying value associated with the river terminals at which the synthetic fuels manufacturing facilities are located.

Factors driving the impairment included, among other things, continued high oil prices, the continued uncertainty of whether federal legislation will be enacted that would provide assurance that tax credits would exist for 2006 production and the continued “idle” state of the synthetic fuel plants.







 

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 


 
 
 
PROGRESS ENERGY, INC.
 
 
 
Registrant
 
 
 
 
 
 
 
 
 
 
 
 
 
 
By:
  /s/ Jeffrey M. Stone
 
 
 
Jeffrey M. Stone
 
 
 
Chief Accounting Officer
 
 
 
 






Date: July 17, 2006