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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
December 8,1995
Date of Report
(Date of earliest event reported)
Beverly Enterprises, Inc.
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(Exact name of Registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
1-9550 95-4100309
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(Commission file number) (IRS employer identification no.)
5111 Rogers Avenue, Suite 40-A
Fort Smith, Arkansas 72919-0155
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(Address of principal executive offices) (Zip code)
(501) 452-6712
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(Registrant's telephone number, including area code)
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ITEM 5. Other Events
On December 8, 1995 Beverly Enterprises, Inc., a Delaware corporation
("Beverly"), announced it will record a non-cash charge against 1995 fourth
quarter earnings of $100-110 million before taxes, related primarily to the
mandated adoption of Statement of Financial Accounting Standards (SFAS) No.
121. The statement, issued in March 1995 by the Financial Accounting Standards
Board, prescribes accounting for the impairment of long-lived assets such as
property, plant and equipment, and goodwill. The SFAS 121 charge primarily
involves the reduction in book value of about 140 of Beverly's 706 nursing
homes, including approximately 50 facilities operated under leases scheduled to
terminate in 1996 that will not be renewed. The charge against earnings also
includes the write-off of approximately $25 million for certain software and
business development costs. Adoption of the new statement has no impact on 1995
cash flow. However, it will result in a reduction of about $10 million in
depreciation and amortization expense in 1996, which will have a favorable but
modest impact on operating income.
ITEM 7. Financial Statements and Exhibits
a) FINANCIAL STATEMENTS OF BUSINESSES ACQUIRED. Not Applicable.
b) PRO FORMA FINANCIAL INFORMATION. Not Applicable.
c) EXHIBITS. Not Applicable.
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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.
BEVERLY ENTERPRISES, INC.
/s/ SCOTT M. TABAKIN
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Scott M. Tabakin,
Senior Vice President, Controller, Chief
Accounting Officer and Acting Chief
Financial Officer
Date: December 11, 1995
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