Form 8-K

What is a Form 8-K Filing?

A Form 8-K, also known as a “current report,” or simply “8-K,” is one of the most common filings for publicly traded companies in the United States. The U.S. Securities and Exchange Commission (SEC) requires publicly traded companies (registrants) file an 8-K when there is a material corporate event impacting the registrant. A material event is considered a significant event that an investor would want to know.

8-Ks are used for material events that occur in-between annual report and interim financial statement filings. Failing to timely file Form 8-K may result in negative regulatory actions, including fines.

Form 8-K is important for investors to have the most up-to-date and relevant information when considering an investment. The 8-K is important for corporate governance, and timely SEC filings are required to be listed on a U.S. securities exchange.

What Triggers an 8-K Filing?

A company must report any event that it thinks will have a material impact to its operations and financial condition.

Examples include the following:

• The release of interim financial statements and exhibits
• Filing annual reports
• Entry into material definitive agreements (typically an acquisition or sale of assets but also new debt issuances)
• Entry into an off-balance sheet arrangement
• Notice of shareholder meeting or proxy statements
• Updates to previously issued financial statements

The registrant has some discretion when determining when a material corporate event occurs but must report that event in a timely manner. A company usually has four business days in which it must file a Form 8-K to meet SEC requirements.

What Must Be Disclosed in an 8-K?

The Form 8-K must disclose information that would be considered material by investors. As part of this, 8-Ks may include financial statements or any of the following information, organized by different categories (sections):

Section 1: Registrant’s Business and Operations

• Item 1.01 — Entry into a Material Definitive Agreement
• Item 1.02 — Termination of a Material Definitive Agreement
• Item 1.03 — Bankruptcy or Receivership
• Item 1.04 — Mine Safety – Reporting of Shutdowns and Patterns of Violations

Section 2: Financial Information

• Item 2.01 — Completion of Acquisition or Disposition of Assets
• Item 2.02 — Results of Operations and Financial Condition
• Item 2.03 — Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
• Item 2.04 — Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
• Item 2.05 — Costs Associated with Exit or Disposal Activities
• Item 2.06 — Material Impairments

Section 3: Securities and Trading Markets

• Item 3.01 — Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
• Item 3.02 — Unregistered Sales of Equity Securities
• Item 3.03 — Material Modification to Rights of Security Holders

Section 4: Matters Related to Accountants and Financial Statements

• Item 4.01 — Changes in Registrant’s Certifying Accountant
• Item 4.02 — Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review

Section 5: Corporate Governance and Management

• Item 5.01 — Changes in Control of Registrant
• Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
• Item 5.03 — Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
• Item 5.04 — Temporary Suspension of Trading Under Registrant’s Employee Benefit Plans
• Item 5.05 — Amendment to Registrant’s Code of Ethics, or Waiver of a Provision of the Code of Ethics
• Item 5.06 — Change in Shell Company Status
• Item 5.07 — Submission of Matters to a Vote of Security Holders
• Item 5.08 — Shareholder Director Nominations

Section 6: Asset-Backed Securities

• Item 6.01 — ABS Informational and Computational Material
• Item 6.02 — Change of Servicer or Trustee
• Item 6.03 — Change in Credit Enhancement or Other External Support
• Item 6.04 — Failure to Make a Required Distribution
• Item 6.05 — Securities Act Updating Disclosure

Section 7: Regulation FD

• Item 7.01 — Regulation FD Disclosure

Section 8: Other Events

• Item 8.01 — Other Events (items that are not specifically called for above but that the registrant considers to be of importance to investors)

Section 9: Financial Statements and Exhibits

• Item 9.01 — Financial Statements and Exhibits

Benefits of Form 8-K

Filing an 8-K benefits companies and investors in multiple ways, including the following:

1. Timely Disclosure of Material Information: The 8-K ensures that material information about a company’s operations, financial condition, and management team is publicly disclosed in a timely manner. This keeps investors and the market informed about significant events that could impact the company, as well as the price of its securities.
2. Greater Transparency: Since the 8-K is required to be filed soon after a material event, this form makes company actions more transparent. Greater transparency may increase investor confidence and improve corporate governance.
3. Market Efficiency: Timely and accurate disclosure of information contributes to market efficiency. This enables investors to make more informed decisions, which can lead to more accurate security prices.
4. Equal Access to Information: The 8-K ensures that all investors, regardless of whether they are an institutional or retail investor, have equal access to material information at the same time.

Additional Resources

In order to help you become a world-class financial analyst and advance your career to your fullest potential, these additional resources will be very helpful:

• Disclosure
• Material Adverse Change (MAC)
• Shareholder Register
• Types of SEC Filings
• See all capital markets resources
• See all wealth management resources