SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Date of Report (Date of earliest
event reported): July 16, 2002
THE ST. PAUL COMPANIES, INC.
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(Exact name of Registrant as specified in its charter)
Minnesota 001-10898 41-0518860
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(State of (Commission File (I.R.S. Employer
Incorporation) Number) Identification No.)
385 Washington St., St. Paul, MN 55102
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(Address of principal executive offices) (Zip Code)
(651) 310-7911
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(Registrant's telephone number,
including area code)
N/A
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(Former name or former address, if changed since last
report)
Item 5. Other Events.
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In the first quarter of 2002, The St. Paul began
implementing the provisions of Statement of Financial
Accounting Standards (SFAS) No. 142, "Goodwill and Other
Intangible Assets," which established financial accounting
and reporting for acquired goodwill and other intangible
assets. The statement changed prior accounting requirements
in the way intangible assets with useful lives, including
goodwill, are tested for impairment on an annual basis. It
also requires that those assets meeting the criteria for
classification as intangible with estimable useful lives be
amortized to expense over those lives, while intangible
assets with indefinite useful lives and goodwill are not
amortized. As a result of implementing the provisions of
this statement, we will not record any goodwill amortization
expense in 2002.
The following table presents the impact, on a pro forma
basis, of adopting SFAS No. 142 with respect to ceasing the
amortization of goodwill, for the years ended Dec. 31, 2001,
2000 and 1999:
Year Ended December 31,
(In millions, except -------------------------------
per share amounts) 2001 2000 1999
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Net income (loss):
As reported $(1,088) $ 993 $ 834
Add: goodwill amortization 29 27 36
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Pro forma net income (loss) $(1,059) $1,020 $ 870
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Basic Earnings (Loss) per Share:
As reported $ (5.22) $ 4.50 $ 3.61
Goodwill amortization 0.14 0.13 0.16
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Pro forma basic EPS $ (5.08) $ 4.63 $ 3.77
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Diluted Earnings (Loss) per Share:
As reported $ (5.22) $ 4.24 $ 3.41
Goodwill amortization 0.14 0.12 0.15
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Pro forma diluted EPS $ (5.08) $ 4.36 $ 3.56
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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 thereunto duly
authorized.
THE ST. PAUL COMPANIES, INC.
By: Bruce A. Backberg
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Bruce A. Backberg
Senior Vice President
Date: July 16, 2002