UNITED STATES
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): October 13, 2009
CONSECO, INC.
(Exact name of registrant as specified in its charter)
Delaware 001-31792 75-3108137
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(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
organization)
11825 North Pennsylvania Street
Carmel, Indiana 46032
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(Address of principal executive offices) (Zip Code)
(317) 817-6100
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(Registrant's telephone number, including area code)
Not Applicable
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(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:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 8.01. Other Events.
Conseco, Inc. (the "Company") is re-issuing its historical financial
statements included in its Annual Report on Form 10-K for the year ended
December 31, 2008 ("2008 Form 10-K") to reflect the adoption of a new accounting
standard that requires retroactive application to previously issued financial
statements. The Company has updated its historical financial statements to
reflect the adoption of FSP No. APB 14-1, "Accounting for Convertible Debt
Instruments That May Be Settled In Cash Upon Conversion (Including Partial Cash
Settlement)" ("FSP APB 14-1") that was effective January 1, 2009.
FSP APB 14-1 specifies that issuers of such instruments should separately
account for the liability and equity components in a manner that will reflect
the entity's nonconvertible debt borrowing rate when interest cost is recognized
in subsequent periods. The adoption of FSP APB 14-1 affected the accounting for
our 3.5 percent Convertible Debentures due September 2035 (the "Debentures").
Upon adoption of FSP APB 14-1, the effective interest rate on our Debentures
increased to 7.4 percent, which resulted in the recognition of a $45 million
discount to these notes with the offsetting after tax amount recorded to paid-in
capital. Such discount is amortized as interest expense over the remaining life
of the Debentures.
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The adoption of FSP APB 14-1 affected prior period information as follows
(dollars in millions, except per share amounts):
Year ended
December 31, 2008
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As originally Effect of adoption of As
reported FSP APB 14-1 adjusted
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Interest expense....................... $ 97.8 $ 8.7 $ 106.5
Income tax expense (benefit)........... 416.4 (3.1) 413.3
Loss before discontinued
operations.......................... (404.0) (5.6) (409.6)
Net loss............................... (1,126.7) (5.6) (1,132.3)
Loss per common share:
Basic:
Loss before discontinued
operations.................... (2.19) (.03) (2.22)
Net loss......................... (6.10) (.03) (6.13)
Diluted:
Loss before discontinued
operations.................... (2.19) (.03) (2.22)
Net loss......................... (6.10) (.03) (6.13)
Year ended
December 31, 2007
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As originally Effect of adoption of As
reported FSP APB 14-1 adjusted
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Interest expense....................... $ 117.3 $ 8.0 $ 125.3
Income tax expense (benefit)........... 64.0 (2.9) 61.1
Loss before discontinued
operations.......................... (74.0) (5.1) (79.1)
Net loss............................... (179.9) (5.1) (185.0)
Loss per common share:
Basic:
Loss before discontinued
operations.................... (.51) (.03) (.54)
Net loss......................... (1.12) (.03) (1.15)
Diluted:
Loss before discontinued
operations.................... (.51) (.03) (.54)
Net loss......................... (1.12) (.03) (1.15)
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Year ended
December 31, 2006
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As originally Effect of adoption of As
reported FSP APB 14-1 adjusted
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Interest expense....................... $ 73.5 $ 7.5 $ 81.0
Income tax expense (benefit)........... 61.0 (2.7) 58.3
Income before discontinued
operations.......................... 105.7 (4.8) 100.9
Net income............................. 106.0 (4.8) 101.2
Earnings per common share:
Basic:
Income before discontinued
operations.................... .45 (.03) .42
Net income....................... .45 (.03) .42
Diluted:
Income before discontinued
operations.................... .45 (.04) .41
Net income....................... .45 (.04) .41
December 31, 2008
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As originally Effect of adoption of As
reported FSP APB 14-1 adjusted
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Income tax assets, net................. $ 2,053.7 $ (6.0) $ 2,047.7
Other assets........................... 277.1 (.4) 276.7
Total assets........................... 28,769.7 (6.4) 28,763.3
Notes payable - direct corporate
obligations......................... 1,328.7 (17.2) 1,311.5
Additional paid-in capital............. 4,076.0 28.0 4,104.0
Accumulated deficit.................... (688.0) (17.2) (705.2)
December 31, 2007
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As originally Effect of adoption of As
reported FSP APB 14-1 adjusted
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Income tax assets, net................. $ 1,610.2 $ (9.0) $ 1,601.2
Other assets........................... 283.1 (.7) 282.4
Total assets........................... 33,971.2 (9.7) 33,961.5
Notes payable - direct corporate
obligations......................... 1,193.7 (26.1) 1,167.6
Additional paid-in capital............. 4,068.6 28.0 4,096.6
Retained earnings...................... 438.7 (11.6) 427.1
This Current Report on Form 8-K updates Items 6, 7 and 8 of, and Exhibit
12.1 to, our 2008 Form 10-K to reflect the retrospective application of the
adoption of FSP APB 14-1 discussed above. With the exception of the foregoing,
all other items of the 2008 Form 10-K remain unchanged. The Company has not made
any attempt to update the matters in the 2008 Form 10-K, except to the extent
expressly provided above.
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Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
12.1 Computation of Ratio of Earnings to Fixed Charges.
23.1 Consent of PricewaterhouseCoopers LLP.
99.1 2008 Annual Report:
Item 6 - Selected Consolidated Financial Data.
Item 7 - Management's Discussion and Analysis of Consolidated
Financial Condition and Results of Operations.
Item 8 - Consolidated Financial Statements and Supplementary
Data.
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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.
CONSECO, INC.
October 13, 2009
By: /s/ John R. Kline
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John R. Kline
Senior Vice President and
Chief Accounting Officer
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