CenterPoint Energy 2014 Annual Report Download - page 44

Our businesses will continue to have to adapt to technological change and may not be successful or may have to incur significant
expenditures to adapt to technological change.
We operate in businesses that require sophisticated data collection, processing systems, software and other technology. Some of the
technologies supporting the industries we serve are changing rapidly. We expect that new technologies will emerge or grow that may be superior
to, or may not be compatible with, some of our existing technologies, and may require us to make significant expenditures so that we can
continue to provide cost-effective and reliable methods of energy delivery.
Our future success will depend, in part, on our ability to anticipate and adapt to technological changes in a cost-
effective manner and to
offer, on a timely basis, reliable services that meet customer demands and evolving industry standards. If we fail to adapt successfully to any
technological change or obsolescence, or fail to obtain access to important technologies or incur significant expenditures in adapting to
technological change, our businesses, operating results and financial condition could be materially and adversely affected.
Our or Enable’
s merger and acquisition activities may not be successful or may result in completed acquisitions that do not perform as
anticipated.
From time to time, we and Enable have made and may continue to make acquisitions of businesses and assets. However, suitable acquisition
candidates may not continue to be available on terms and conditions we or Enable, as the case may be, find acceptable. In addition, any
completed or future acquisitions involve substantial risks, including the following:
We are involved in numerous legal proceedings, the outcome of which are uncertain, and resolutions adverse to us could negatively affect
our financial results.
We are subject to numerous legal proceedings, the most significant of which are summarized in Footnote 14 of the Notes to the
Consolidated Financial Statements. Litigation is subject to many uncertainties, and we cannot predict the outcome of individual matters with
assurance. Final resolution of these matters may require additional expenditures over an extended period of time that may be in excess of
established reserves and may have a material adverse effect on our financial results.
None.
Character of Ownership
We lease or own our principal properties in fee, including our corporate office space and various real property. Most of our electric lines and
gas mains are located, pursuant to easements and other rights, on public roads or on land owned by others.
38
•
acquired businesses or assets may not produce revenues, earnings or cash flow at anticipated levels;
•
acquired businesses or assets could have environmental, permitting or other problems for which contractual protections prove
inadequate;
•
we or Enable may assume liabilities that were not disclosed to us, that exceed our estimates, or for which our rights to indemnification
from the seller are limited;
•
we or Enable may be unable to integrate acquired businesses successfully and realize anticipated economic, operational and other
benefits in a timely manner, which could result in substantial costs and delays or other operational, technical or financial problems; and
•
acquisitions, or the pursuit of acquisitions, could disrupt ongoing businesses, distract management, divert resources and make it difficult
to maintain current business standards, controls and procedures.
Item 1B.
Unresolved Staff Comments
Item 2.
Properties