UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

OLD NATIONAL BANCORP

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

Indiana (State or other jurisdiction of incorporation)		001-15817 (Commission File Number)		35-1539838 (IRS Employer Identification No.)

One Main Street
Evansville, Indiana 47708
(Address of Principal Executive Offices, including Zip Code)

(812) 464-1294
(Registrant’s Telephone Number, Including Area Code)

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 (see General Instruction A.2 below):

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

 

 

Item 2.02. Results of Operation and Financial Condition.

     On January 31, 2006, Old National Bancorp (the “Company”) issued a press release announcing its financial results for the fourth quarter and full year 2005. The Company also released its financial trends including its 2005 results. The financial trends are included as Exhibit 99.2 hereto which is incorporated herein by reference. In connection therewith, a slide presentation outlining fourth quarter and full year 2005 earnings, the company’s financial outlook, and current strategic developments will be available on the Company’s website to supplement the conference call to be held on January 31, 2006, at 2:30 p.m. CST and will be accessible at www.oldnational.com before the conference call begins.

     In addition, the Company announced that it will restate its audited financial statements for the years ended December 31, 2002, 2003 and 2004 and its unaudited interim financial statements for the quarters ended March 31, June 30 and September 30, 2004 and 2005 to correct the accounting for certain derivative transactions relating to interest rate swap agreements on the Company’s junior subordinated debt and brokered certificates of deposit.

     A copy of the press release is attached to this report as Exhibit 99.1.

Item 4.02.		Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.

     On January 25, 2006, management and the Audit Committee of the Board of Directors of the Company, concluded that the Company’s audited financial statements for the years ended December 31, 2002, 2003 and 2004 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2004 and its unaudited interim financial statements for each of the quarters ended March 31, June 30 and September 30, 2004 and 2005 included in the Company’s Forms 10-Q for such quarters should no longer be relied upon as a result of the accounting treatment applied by the Company in connection with certain derivative transactions associated with its brokered certificates of deposit and junior subordinated debt under Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities (“SFAS No. 133”).

     Management and the Audit Committee have discussed the matters surrounding the restatement of the financial statements disclosed herein pursuant to Item 4.02(a) of Form 8-K with the Company’s independent registered public accounting firm.

     Accordingly, the Company intends to amend its Annual Report on Form 10-K for the year ended December 31, 2004 and its Quarterly Reports on Form 10-Q for each of the quarters ended March 31, June 30 and September 30, 2005 to reflect the proper application of SFAS No. 133. In connection with this restatement, the Company will be making certain other non-significant adjustments to its financial statements for the quarters ended June 30 and September 30, 2005.

Background

     Since 2001, the Company has entered into interest rate swap agreements to hedge the interest rate risk inherent in certain of its junior subordinated debt and brokered certificates of deposit. From inception of these transactions, the Company has applied a method of fair value hedge accounting under SFAS No. 133

(commonly referred to as the “short-cut” method) and, as a result, assumed no ineffectiveness in the hedging relationships. However, based upon re-examination of the original documentation supporting the designation of these swap transactions as hedges, the Company concluded that the hedging relationships involving brokered certificates of deposit did not qualify for the short-cut method in prior periods because the related swap did not have a fair value of zero at inception (a requirement under SFAS No. 133 to qualify for the short-cut method). Additionally, the Company determined that the hedging relationships involving junior subordinated debt did not qualify for the short-cut method in prior periods because of an interest deferral feature that permits interest payments to be deferred for up to 20 consecutive quarterly periods without creating an event of default or acceleration.

     The Company continues to believe that the swaps have been and will continue to be highly effective economic hedges. However, the hedging relationships do not qualify for the “short-cut” method of accounting and cannot qualify for preferable hedge accounting treatment retrospectively due to a lack of applicable contemporaneous documentation.

     Fair value hedge accounting allows a company to offset the fair value adjustment of the hedged item with the fair value adjustment of the related interest rate swap. Eliminating the application of fair value hedge accounting reverses the market value adjustments that were made to the junior subordinated debt and brokered certificates of deposit and results in fluctuations in the market value of the interest rate swaps being recognized currently in the income statement without the offsetting adjustment to the liability accounts.

     In January of 2006, Old National decided to terminate certain swaps and has redesignated the remaining interest rate swaps on its junior subordinated debt and brokered certificates of deposit as fair value hedges utilizing the long-haul method of effectiveness testing, and as a result should receive hedge accounting treatment in future periods. The future impact on earnings from the related ineffectiveness is expected to be minimal.

     The tables below set forth the primary changes from the previously reported quarterly financial results for the periods ended March 31, June 30, and September 30, 2005 and for the year ended December 31, 2004 and for the quarterly periods in 2004. The restatement required the following adjustments:

	1.		The net cash settlements under the interest rate swaps that were originally reported in interest expense have been reclassified to noninterest income.
	2.		The change in the fair value of the interest rate swaps that originally off-set the change in the fair value of the associated junior subordinated debt and brokered certificates of deposit is reported in noninterest income.
	3.		Income tax expense (benefits) for the adjustments.
	4.		The fair value adjustments to the brokered certificates of deposit have been eliminated.
	5.		The fair value adjustments to the junior subordinated debt have been eliminated.
	6.		The income tax liability has changed as a result of the adjustments noted above.
	7.		The adjustment to stockholders’ equity reflects the cumulative impact of the adjustments, net of income taxes.

2005
OLD NATIONAL BANCORP
($ and shares in thousands except per share data)

		As Previously Reported												Adjustments												As Restated
		1Q				2Q				3Q				1Q				2Q				3Q				1Q				2Q				3Q				4Q				YTD
		2005				2005				2005				2005				2005				2005				2005				2005				2005				2005				2005
Condensed Statement of Income
Net Interest Income (1)		$	58,638			$	57,126			$	57,608			$	(3,441	)		$	(2,445	)		$	(1,942	)		$	55,197			$	54,681			$	55,666			$	53,608			$	219,152
Provision for Loan Losses			5,100				6,000				6,000				—				—				—				5,100				6,000				6,000				6,000				23,100
Noninterest Income (2)			36,005				38,473				39,268				(2,747	)			8,045				(4,808	)			33,258				46,518				34,460				45,662				159,898
Noninterest Expense			66,356				63,901				62,002				—				—				—				66,356				63,901				62,002				69,848				262,107
Income before Income Taxes			23,187				25,698				28,874				(6,188	)			5,600				(6,750	)			16,999				31,298				22,124				23,422				93,843
Income Taxes (3)			3,747				4,489				5,774				(2,304	)			2,112				(2,526	)			1,443				6,601				3,248				3,962				15,254
Income -Cont. Operations			19,440				21,209				23,100				(3,884	)			3,488				(4,224	)			15,556				24,697				18,876				19,460				78,589
Income-Disc Operations			(984	)			1,666				(15,507	)			—				(1,124	)			1,124				(984	)			542				(14,383	)			—				(14,825	)
Net Income		$	18,456			$	22,875			$	7,593			$	(3,884	)		$	2,364			$	(3,100	)		$	14,572			$	25,239			$	4,493			$	19,460			$	63,764
Diluted Earnings Per Share
Income from Cont Operations		$	0.28			$	0.31			$	0.34			$	(0.06	)		$	0.06			$	(0.06	)		$	0.22			$	0.37			$	0.28			$	0.28			$	1.15
Income from Disc Operations			(0.01	)			0.02				(0.23	)			—				(0.02	)			0.02				(0.01	)			—				(0.21	)			—				(0.22	)
Net Income		$	0.27			$	0.33			$	0.11			$	(0.06	)		$	0.04			$	(0.04	)		$	0.21			$	0.37			$	0.07			$	0.28			$	0.93
Diluted Common Shares O/S			68,787				68,488				68,331				—				—				—				68,787				68,488				68,331				67,591				68,256
Condensed Balance Sheet
Earning Assets		$	7,949,544			$	7,728,290			$	7,704,823			$	—			$	—			$	—			$	7,949,544			$	7,728,290			$	7,704,823			$	7,611,157			$	7,611,157
Nonearning Assets			843,503				922,048				830,468				—				(1,830	)			—				843,503				920,218				830,468				880,865				880,865
Total Assets		$	8,793,047			$	8,650,338			$	8,535,291			$	—			$	(1,830	)		$	—			$	8,793,047			$	8,648,508			$	8,535,291			$	8,492,022			$	8,492,022
Deposits (4)		$	6,361,663			$	6,320,772			$	6,365,172			$	8,258			$	3,327			$	8,208			$	6,369,921			$	6,324,099			$	6,373,380			$	6,465,636			$	6,465,636
Short-term Borrowings			493,312				468,046				350,999				—				—				—				493,312				468,046				350,999				302,765				302,765
Other Borrowings (5)			1,155,595				1,051,315				1,036,093				(3,332	)			(3,999	)			(2,130	)			1,152,263				1,047,316				1,033,963				954,925				954,925
Other Liabilities (6)			111,888				107,979				110,226				(1,926	)			(521	)			(2,342	)			109,962				107,458				107,884				118,798				118,798
Stockholders Equity (7)			670,589				702,226				672,801				(3,000	)			(637	)			(3,736	)			667,589				701,589				669,065				649,898				649,898
Total Liab & Equity		$	8,793,047			$	8,650,338			$	8,535,291			$	—			$	(1,830	)		$	—			$	8,793,047			$	8,648,508			$	8,535,291			$	8,492,022			$	8,492,022
Impact on Certain Ratios
(Based on Net Income)
Net Interest Margin			3.22	%			3.20	%			3.26	%			(0.17)	%			(0.13)	%			(0.10)	%			3.05	%			3.07	%			3.16	%			3.09	%			3.09	%
Return on Ave Assets			0.84	%			1.05	%			0.36	%			(0.18)	%			0.11	%			(0.15)	%			0.66	%			1.16	%			0.21	%			0.92	%			0.74	%
Return on Average Equity			10.48	%			13.18	%			4.48	%			(2.21)	%			1.51	%			(1.82)	%			8.27	%			14.69	%			2.66	%			11.69	%			9.33	%
Efficiency Ratio (A)			66.22	%			63.18	%			60.72	%			4.36	%			(3.31)	%			4.30	%			70.58	%			59.86	%			65.02	%			66.87	%			65.43	%
Ave Equity to Ave Assets			7.99	%			7.96	%			7.92	%			—				(0.08)	%			(0.01)	%			7.99	%			7.88	%			7.91	%			7.91	%			7.92	%
Tier 1 Risk Based Capital			11.01	%			10.06	%			10.42	%			(0.05)	%			0.02	%			(0.06)	%			10.96	%			10.08	%			10.36	%			10.64	%			10.64	%
Leverage (to ave assets)			7.76	%			7.22	%			7.61	%			(0.03)	%			0.01	%			(0.04)	%			7.73	%			7.23	%			7.57	%			7.67	%			7.67	%
Book Value		$	9.76			$	10.18			$	9.89			$	(0.04)			$	—			$	(0.05)			$	9.72			$	10.18			$	9.84			$	9.61			$	9.61

OLD NATIONAL BANCORP
($ and shares in thousands except per share data)

		As Previously Reported																	Adjustments																	As Restated
		1Q				2Q				3Q				4Q					1Q				2Q				3Q				4Q					1Q				2Q				3Q				4Q
		2004				2004				2004				2004					2004				2004				2004				2004					2004				2004				2004				2004
Condensed Statement of Income
Net Interest Income (1)		$	65,099			$	65,130			$	60,988			$	59,512				$	(5,021	)		$	(5,131	)		$	(4,681	)		$	(4,139	)			$	60,078			$	59,999			$	56,307			$	55,373
Provision for Loan Losses			7,500				7,500				7,400				—					—				—				—				—					7,500				7,500				7,400				—
Noninterest Income (2)			37,660				42,380				35,165				35,853					9,263				(9,163	)			10,419				1,311					46,923				33,217				45,584				37,164
Noninterest Expense			74,002				91,725				69,094				74,582					—				—				—				—					74,002				91,725				69,094				74,582
Income before Income Taxes			21,257				8,285				19,659				20,783					4,242				(14,294	)			5,738				(2,828	)				25,499				(6,009	)			25,397				17,955
Income Taxes (3)			2,667				(1,930	)			1,840				2,587					1,582				(5,338	)			2,163				(1,042	)				4,249				(7,268	)			4,003				1,545
Income -Cont. Operations			18,590				10,215				17,819				18,196					2,660				(8,956	)			3,575				(1,786	)				21,250				1,259				21,394				16,410
Income-Disc Operations			919				1,068				365				399					—				—				—				—					919				1,068				365				399
Net Income		$	19,509			$	11,283			$	18,184			$	18,595				$	2,660			$	(8,956	)		$	3,575			$	(1,786	)			$	22,169			$	2,327			$	21,759			$	16,809
Diluted Earnings Per Share
Income from Cont Operations		$	0.27			$	0.14			$	0.26			$	0.26				$	0.04			$	(0.13	)		$	0.05			$	(0.03	)			$	0.31			$	0.01			$	0.31			$	0.23
Income from Disc Operations			0.01				0.02				—				0.01					—				—				—				—					0.01				0.02				—				0.01
Net Income		$	0.28			$	0.16			$	0.26			$	0.27				$	0.04			$	(0.13	)		$	0.05			$	(0.03	)			$	0.32			$	0.03			$	0.31			$	0.24
Diluted Common Shares O/S			69,783				70,160				70,067				70,022					—				—				—				—					69,783				70,160				70,067				70,022
Condensed Balance Sheet
Earning Assets		$	8,466,808			$	8,175,191			$	8,122,791			$	8,012,398				$	—			$	—			$	—			$	—				$	8,466,808			$	8,175,191			$	8,122,791			$	8,012,398
Nonearning Assets			800,481				866,259				858,924				885,906					—				—				—				—					800,481				866,259				858,924				885,906
Total Assets		$	9,267,289			$	9,041,450			$	8,981,715			$	8,898,304				$	—			$	—			$	—			$	—				$	9,267,289			$	9,041,450			$	8,981,715			$	8,898,304
Deposits (4)		$	6,385,103			$	6,346,326			$	6,408,129			$	6,414,263				$	(783	)		$	8,152			$	3,436			$	4,446				$	6,384,320			$	6,354,478			$	6,411,565			$	6,418,709
Short-term Borrowings			471,403				426,679				338,531				347,353					—				—				—				—					471,403				426,679				338,531				347,353
Other Borrowings (5)			1,533,202				1,456,179				1,405,522				1,312,661					(11,862	)			(6,504	)			(7,525	)			(5,708	)				1,521,340				1,449,675				1,397,997				1,306,953
Other Liabilities (6)			136,720				138,968				117,187				120,819					4,594				(741	)			1,420				378					141,314				138,227				118,607				121,197
Stockholders Equity (7) (B)			740,861				673,298				712,346				703,208					8,051				(907	)			2,669				884					748,912				672,391				715,015				704,092
Total Liab & Equity		$	9,267,289			$	9,041,450			$	8,981,715			$	8,898,304				$	—			$	—			$	—			$	—				$	9,267,289			$	9,041,450			$	8,981,715			$	8,898,304
Impact on Certain Ratios
Net Interest Margin			3.37	%			3.38	%			3.30	%			3.21	%				(0.24)	%			(0.25)	%			(0.23)	%			(0.21)	%				3.13	%			3.13	%			3.07	%			3.00	%
Return on Ave Assets			0.84	%			0.49	%			0.81	%			0.83	%				0.12	%			(0.39)	%			0.16	%			(0.08)	%				0.96	%			0.10	%			0.97	%			0.75	%
Return on Average Equity			10.68	%			6.34	%			10.58	%			10.45	%				1.35	%			(5.04)	%			2.01	%			(1.03)	%				12.03	%			1.30	%			12.59	%			9.42	%
Efficiency Ratio (A)			67.99	%			80.78	%			67.67	%			73.72	%				(2.55)	%			11.63	%			(3.60)	%			2.11	%				65.44	%			92.41	%			64.07	%			75.83	%
Ave Equity to Ave Assets			7.89	%			7.69	%			7.66	%			7.90	%				0.07	%			0.05	%			0.04	%			0.03	%				7.96	%			7.74	%			7.70	%			7.93	%
Tier 1 Risk Based Capital			11.08	%			11.31	%			11.43	%			11.18	%				0.13	%			(0.01)	%			0.05	%			0.01	%				11.21	%			11.30	%			11.48	%			11.19	%
Leverage (to ave assets)			7.53	%			7.48	%			7.69	%			7.68	%				0.08	%			(0.01)	%			0.03	%			0.01	%				7.61	%			7.47	%			7.72	%			7.69	%
Book Value		$	10.62			$	9.68			$	10.29			$	10.15				$	0.11			$	(0.02	)		$	0.03			$	0.01				$	10.73			$	9.66			$	10.32			$	10.16

OLD NATIONAL BANCORP
($ and shares in thousands except per share data)

		As Previously Reported												Adjustments												As Restated
		2002				2003				2004				2002				2003				2004				2002				2003				2004
Condensed Statement of Income
Net Interest Income (1)		$	289,424			$	271,957			$	250,729			$	(9,904	)		$	(16,666	)		$	(18,972	)		$	279,520			$	255,291			$	231,757
Provision for Loan Losses			33,500				85,000				22,400				—				—				—				33,500				85,000				22,400
Noninterest Income (2)			147,891				164,059				151,058				25,957				8,883				11,830				173,848				172,942				162,888
Noninterest Expense			252,317				275,801				309,403				—				—				—				252,317				275,801				309,403
Income before Income Taxes			151,498				75,215				69,984				16,053				(7,783	)			(7,142	)			167,551				67,432				62,842
Income Taxes (3)			34,198				7,273				5,164				5,855				(2,892	)			(2,635	)			40,053				4,381				2,529
Income -Cont. Operations			117,300				67,942				64,820				10,198				(4,891	)			(4,507	)			127,498				63,051				60,313
Income-Disc Operations			632				2,471				2,751				—				—				—				632				2,471				2,751
Net Income		$	117,932			$	70,413			$	67,571			$	10,198			$	(4,891	)		$	(4,507	)		$	128,130			$	65,522			$	63,064
Diluted Earnings Per Share
Income from Cont Operations		$	1.66			$	0.97			$	0.93			$	0.14			$	(0.07	)		$	(0.07	)		$	1.80			$	0.90			$	0.86
Income from Disc Operations			0.01				0.03				0.04				—				—				—				0.01				0.03				0.04
Net Income		$	1.67			$	1.00			$	0.97			$	0.14			$	(0.07	)		$	(0.07	)		$	1.81			$	0.93			$	0.90
Diluted Common Shares O/S			70,673				70,174				70,024				—				—				—				70,673				70,174				70,024
Condensed Balance Sheet
Earning Assets		$	8,860,651			$	8,518,204			$	8,012,398			$	—			$	—			$	—			$	8,860,651			$	8,518,204			$	8,012,398
Nonearning Assets			751,905				845,028				885,906				—				—				—				751,905				845,028				885,906
Total Assets		$	9,612,556			$	9,363,232			$	8,898,304			$	—			$	—			$	—			$	9,612,556			$	9,363,232			$	8,898,304
Deposits (4)		$	6,439,280			$	6,493,092			$	6,414,263			$	(2,345	)		$	1,747			$	4,446			$	6,436,935			$	6,494,839			$	6,418,709
Short-term Borrowings			918,349				414,588				347,353				—				—				—				918,349				414,588				347,353
Other Borrowings (5)			1,397,857				1,624,092				1,312,661				(13,843	)			(10,150	)			(5,708	)			1,384,014				1,613,942				1,306,953
Other Liabilities (6)			116,360				115,970				120,819				5,907				3,013				378				122,267				118,983				121,197
Stockholders Equity (7)			740,710				715,490				703,208				10,281				5,390				884				750,991				720,880				704,092
Total Liab & Equity		$	9,612,556			$	9,363,232			$	8,898,304			$	—			$	—			$	—			$	9,612,556			$	9,363,232			$	8,898,304
Impact on Certain Ratios
Net Interest Margin			3.65	%			3.37	%			3.31	%			(0.11	)%			(0.19	)%			(0.23	)%			3.54	%			3.18	%			3.08	%
Return on Ave Assets			1.27	%			0.74	%			0.74	%			0.11	%			(0.05	)%			(0.05	)%			1.38	%			0.69	%			0.69	%
Return on Average Equity			17.05	%			9.48	%			9.51	%			1.38	%			(0.76	)%			(0.68	)%			18.43	%			8.72	%			8.83	%
Efficiency Ratio (A)			54.56	%			59.81	%			72.68	%			(1.83	)%			1.03	%			1.24	%			52.73	%			60.84	%			73.92	%
Ave Equity to Ave Assets			7.47	%			7.78	%			7.79	%			0.03	%			0.08	%			0.04	%			7.50	%			7.86	%			7.83	%
Tier 1 Risk Based Capital			11.12	%			10.96	%			11.18	%			0.16	%			0.09	%			0.01	%			11.28	%			11.05	%			11.19	%
Leverage (to ave assets)			7.53	%			7.35	%			7.68	%			0.11	%			0.06	%			0.01	%			7.64	%			7.41	%			7.69	%
Book Value		$	10.52			$	10.24			$	10.15			$	0.15			$	0.07			$	0.01			$	10.67			$	10.31			$	10.16

(A) Based on Continuing Operations.

Internal Control Over Financial Reporting

     Management of Old National will restate its assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2004, originally included in management’s report on Internal Control over Financial Reporting in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004. In that report management concluded that the Company’s internal control over financial reporting was effective as of that date. A material weakness is a control deficiency, or a combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. Management has now concluded that the Company’s internal control over financial reporting as of December 31, 2004 was ineffective as a result of the following material weakness:

     The Company did not maintain effective controls over the identification, evaluation and documentation of all contractual terms included in certain derivative financial instruments and certain liabilities designated in hedging relationships. Specifically, the Company failed to consider the impact of upfront fees included in interest rate swap agreements and interest deferral features embedded in the Company’s junior subordinated debt. As a result, the Company incorrectly used the short-cut method of accounting which assumes no hedge ineffectiveness. This control deficiency resulted in the restatement of the Company’s consolidated financial statements for the years ended December 31, 2004, 2003 and 2002 and for each of the interim periods in fiscal years 2005 and 2004. Additionally, this control deficiency could result in a misstatement of the derivatives, hedged liabilities and related income statement accounts that would result in a material misstatement to the Company’s annual or interim consolidated financial statements that would not be prevented or detected. Accordingly, management of the Company determined that this control deficiency constitutes a material weakness.

     As a result, management’s report on Internal Control over Financial Reporting, as originally filed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004, should no longer be relied upon and will be restated when the Company files its 2004 Form 10-K/A. In such Form 10-K/A, the Company (i) will conclude that the aforementioned controls were not effective as of December 31, 2004 and (ii) expects that PricewaterhouseCoopers LLP, the Company’s independent registered public accounting firm will issue an opinion stating that the Company did not maintain effective controls over financial reporting as of December 31, 2004.

     The impact of this internal control deficiency on the Company’s assessment of internal control over financial reporting as of December 31, 2005 has not yet been determined as management’s assessment and control testing is not complete.

     As of the date of this filing, the Company has remediated the internal control deficiency identified above to ensure future hedging transactions are appropriately classified in accordance with GAAP and, additionally, that updating procedures performed by the accounting and financial reporting functions in respect of prior period accounting conclusions include timely evaluation of changes in technical interpretations of existing GAAP and/or changes in business conditions. In connection with that remediation effort the Company has:

	1)		Established enhanced procedures to be performed by knowledgeable and trained accounting personnel over documentation, evaluation and classification of new hedging relationships;
	2)		Established an enhanced quarterly and annual procedure to review the impact of new interpretations or accounting changes in respect of the application of hedge accounting on previous significant hedging relationships;
	3)		Established a policy that the long haul method of hedge accounting be utilized in all hedging relationships unless otherwise approved by the Senior Accounting Officer of the Company;
	4)		Retained a consultant to provide additional guidance with respect to complex derivative accounting principles; and
	5)		Established a plan to augment its accounting expertise through extensive training on accounting for derivatives and hedging activities.

     Management and the Audit Committee have discussed the matters described in this report with PricewaterhouseCoopers LLP, the Company’s independent registered public accounting firm.

Item 9.01.		Financial Statements and Exhibits.

(c)

Exhibits.

	99.1		Press Release of the Company dated January 31, 2006
	99.2		Financial Trends of the Company dated January 31, 2006

*  *  *

SIGNATURE

     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.

     Date: January 31, 2006

EXHIBIT INDEX

Exhibit
Number		Description
99.1		Press Release of the Company dated January 31, 2006
99.2		Financial Trends of the Company dated January 31, 2006