SEC Comment Letter for COLONIAL COMMERCIAL CORP (CIK 0000021828) — Jul 13, 2005
COLONIAL COMMERCIAL CORP (CIK 0000021828)
Date: July 13, 2005 · CIK: 0000021828 · Accession: 0000000000-05-035829
AI Filing Summary & Sentiment
Referenced dates: April 28, 2005
Letter
May 26, 2005 via U.S. mail and facsimile Bernard Korn, Chief Executive Officer Colonial Commercial Corp. 120 New South Road Hicksville, NY 11801
RE: Form 10-K for the fiscal year ended December 31, 2004 File No. 1-6663
Dear Mr. Korn:
We have reviewed your response letter dated April 28, 2005 and have the following additional comments. If you disagree, we will consider your explanation as to why our comment is inapplicable. In some of our comments, we may ask you to provide us with supplemental information so we may better understand your disclosure. After reviewing this information, we may or may not raise additional comments.
FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2004
Comment applicable to your overall filing 1. Where a comment below requests additional disclosures or other revisions to be made, please show us in your supplemental response what the revisions will look like. These revisions should be included in your future filings.
Item 7. Management`s Discussion and Analysis of Financial Condition and Results of Operations
Liquidity and Capital Resources
Contractual Obligations 2. We read your response to our comment 6. As previously requested, please include your estimated interest payments on your debt in the contractual obligations table. Please also disclose any assumptions you made to derive these amounts.
Financial Statements
Notes to Financial Statements
(1) Summary of Significant Accounting Policies and Practices
(g) Inventory, page F-10 3. We read your response to our comment 9. You have disclosed that all costs of shipping inventory to customers are included in selling, general and administrative expenses. As previously requested, please expand your disclosure to include whether you include inbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, and the other costs of your distribution network in your cost of sales line item. With the exception of warehousing costs, if you currently exclude a portion of these costs from cost of sales, please disclose: * in a footnote the line items that these excluded costs are included in and the amounts included in each line item for each period presented, and * in MD&A that your gross margins may not be comparable to those of other entities, since some entities include all of the costs related to their distribution network in cost of sales and others like you exclude a portion of them from gross margin, including them instead in another line item, such as selling, general and administrative expenses.
(15) Commitments 4. We read your response to our comment 12. Your response indicates that John A. Hildebrandt, Paul Hildebrandt and the Predecessors have indemnified Universal against all asbestos claims. You further disclosed that your counsel has advised you that they are not aware of any material pending or threatened litigation, claims or assessments, except for one matter of which any verdict or settlement will be covered by insurance. Please tell us how the nature of this claim, including the differences that would cause you to be liable, differs from the other claims and potential claims. In addition, please include in your response the amount or range of amounts relating to this claim.
5. Based on your disclosure and response to our comment 12, it appears as though you may have probable product liabilities related primarily to asbestos-related claims. As previously requested, please disclose the following: * a rollforward for each period presented of your claims activity that shows the number of claims at the beginning of the period, increases in the number of claims, the number of claims settled, and the ending number of claims, * the average settlement amount for cases closed in each period, * the accrual balance, if any, for each period presented, and * the amount recorded, if any, for each period presented in your statement of operations.
* * * *
As appropriate, please respond to these comments within 10 business days or tell us when you will provide us with a response. Please furnish a letter that keys your responses to our comments and provides any requested supplemental information. Detailed response letters greatly facilitate our review. Please file your response letter on EDGAR. Please understand that we may have additional comments after reviewing your responses to our comments.
If you have any questions regarding these comments, please direct them to Meagan Caldwell, Staff Accountant, at (202) 551- or, in her absence, to the undersigned at (202) 551-3769.
Sincerely,
Rufus Decker
Accounting Branch Chief
Show Raw Text
<DOCUMENT>
<TYPE>LETTER
<SEQUENCE>1
<FILENAME>filename1.txt
<TEXT>
May 26, 2005
via U.S. mail and facsimile
Bernard Korn, Chief Executive Officer
Colonial Commercial Corp.
120 New South Road
Hicksville, NY 11801
RE: Form 10-K for the fiscal year ended December 31, 2004
File No. 1-6663
Dear Mr. Korn:
We have reviewed your response letter dated April 28, 2005
and
have the following additional comments. If you disagree, we will
consider your explanation as to why our comment is inapplicable.
In
some of our comments, we may ask you to provide us with
supplemental
information so we may better understand your disclosure. After
reviewing this information, we may or may not raise additional
comments.
FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2004
Comment applicable to your overall filing
1. Where a comment below requests additional disclosures or other
revisions to be made, please show us in your supplemental response
what the revisions will look like. These revisions should be
included in your future filings.
Item 7. Management`s Discussion and Analysis of Financial
Condition
and Results of Operations
Liquidity and Capital Resources
Contractual Obligations
2. We read your response to our comment 6. As previously
requested,
please include your estimated interest payments on your debt in
the
contractual obligations table. Please also disclose any
assumptions
you made to derive these amounts.
Financial Statements
Notes to Financial Statements
(1) Summary of Significant Accounting Policies and Practices
(g) Inventory, page F-10
3. We read your response to our comment 9. You have disclosed
that
all costs of shipping inventory to customers are included in
selling,
general and administrative expenses. As previously requested,
please
expand your disclosure to include whether you include inbound
freight
charges, purchasing and receiving costs, inspection costs,
warehousing costs, internal transfer costs, and the other costs of
your distribution network in your cost of sales line item. With
the
exception of warehousing costs, if you currently exclude a portion
of
these costs from cost of sales, please disclose:
* in a footnote the line items that these excluded costs are
included
in and the amounts included in each line item for each period
presented, and
* in MD&A that your gross margins may not be comparable to those
of
other entities, since some entities include all of the costs
related
to their distribution network in cost of sales and others like you
exclude a portion of them from gross margin, including them
instead
in another line item, such as selling, general and administrative
expenses.
(15) Commitments
4. We read your response to our comment 12. Your response
indicates
that John A. Hildebrandt, Paul Hildebrandt and the Predecessors
have
indemnified Universal against all asbestos claims. You further
disclosed that your counsel has advised you that they are not
aware
of any material pending or threatened litigation, claims or
assessments, except for one matter of which any verdict or
settlement
will be covered by insurance. Please tell us how the nature of
this
claim, including the differences that would cause you to be
liable,
differs from the other claims and potential claims. In addition,
please include in your response the amount or range of amounts
relating to this claim.
5. Based on your disclosure and response to our comment 12, it
appears as though you may have probable product liabilities
related
primarily to asbestos-related claims. As previously requested,
please disclose the following:
* a rollforward for each period presented of your claims activity
that shows the number of claims at the beginning of the period,
increases in the number of claims, the number of claims settled,
and
the ending number of claims,
* the average settlement amount for cases closed in each period,
* the accrual balance, if any, for each period presented, and
* the amount recorded, if any, for each period presented in your
statement of operations.
* * * *
As appropriate, please respond to these comments within 10
business days or tell us when you will provide us with a response.
Please furnish a letter that keys your responses to our comments
and
provides any requested supplemental information. Detailed
response
letters greatly facilitate our review. Please file your response
letter on EDGAR. Please understand that we may have additional
comments after reviewing your responses to our comments.
If you have any questions regarding these comments, please
direct them to Meagan Caldwell, Staff Accountant, at (202) 551-
3754
or, in her absence, to the undersigned at (202) 551-3769.
Sincerely,
Rufus Decker
Accounting Branch Chief
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Mr. Bernard Korn
Colonial Commercial Corp.
May 3, 2005
Page 1 of 3
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-0510
DIVISION OF
CORPORATION FINANCE
</TEXT>
</DOCUMENT>