Carolina Power & Light Company
NOTES TO FINANCIAL STATEMENTS
1. Except as described in Note 2 below, these interim financial statements are prepared in conformity with the
accounting principles reflected in the financial statements included in the Company's 1993 Annual Report to
Shareholders and the 1993 Annual Report on Form 10-K. These are interim financial statements, and because of
temperature variations between seasons of the year and the timing of outages of electric generating units,
especially nuclear-fueled units, the amounts reported in the Statements of Income for periods of less than twelve
months are not necessarily indicative of amounts expected for the year.
Certain amounts for 1993 have been reclassified to conform to the 1994 presentation.
2. In January 1994, the Company implemented Statement of Position (SOP) 93-6, "Employers' Accounting for
Employee Stock Ownership Plans," on a prospective basis. This SOP requires the following changes in
accounting for the Company's leveraged employee stock ownership plan (ESOP): 1) ESOP shares that have not
been committed to be released are no longer considered outstanding for the determination of earnings per
common share; 2) dividends on unallocated ESOP shares are no longer recognized for financial statement
purposes; 3) all tax benefits of ESOP dividends are now recorded to non-operating income tax expense,
whereas previously a portion of the tax benefits was recorded directly to retained earnings; 4) interest income
related to the qualified ESOP loan is no longer recognized; and 5) the difference between the acquisition and
allocation prices of ESOP shares, which was previously recorded as other income, net, is now recorded directly
to common stock. In addition, ESOP loan transactions between the Company and the Stock Purchase-Savings
Plan (SPSP) Trustee are no longer reflected in the Statements of Cash Flows.
The implementation of SOP 93-6 resulted in an increase in earnings per common share of approximately $.01 for