SEC Comment Letter for WINN DIXIE STORES INC (CIK 0000107681) — Feb 8, 2005
WINN DIXIE STORES INC (CIK 0000107681)
Date: Feb. 8, 2005 · CIK: 0000107681 · Accession: 0000000000-05-006388
AI Filing Summary & Sentiment
Letter
February 8, 2005 By Facsimile and U.S. Mail Mr. Bennett L. Nussbaum Senior Vice President and Chief Financial Officer Winn-Dixie Stores, Inc. 5050 Edgewood Court Jacksonville, FL 32254
RE: Winn-Dixie Stores, Inc. Form 10-K for the fiscal year ended June 30, 2004 Filed August 26, 2004 Form 10-Q for the quarterly period ended September 22, 2004 File No. 1-3657
Dear Mr. Nussbaum:
We have reviewed the responses in your letter filed on January 28, 2005 and have the following additional comments. We welcome any questions you may have about our comments or on any other aspect of our review. Feel free to call us at the telephone numbers listed at the end of this letter.
Form 10-K for the Fiscal Year Ended June 30, 2004
Financial Statements
Consolidated Statements of Shareholders` Equity, page 36
1. We have reviewed your response to prior comment 8 and are still unclear as to why you believe it is appropriate to reflect restricted stock issuances and stock option exercises as increases in retained earnings. Absent a legislative restriction against setting up an additional paid-in-capital (APIC) account, we would expect such activity to be reflected in a contributed capital account (such as APIC) as opposed to an earned capital account or retained earnings. Please either confirm you will revise future filings accordingly, or provide us additional support for your accounting/presentation, including references to applicable authoritative literature, as appropriate.
Notes to Consolidated Financial Statements
1. Summary of Significant Accounting Policies
(u) Business Reporting Segments, page 42
2. We have reviewed your response to prior comment 13 and continue to believe that to the extent revenues by product line are available, such information should be disclosed pursuant to paragraph 37 of SFAS 131. We believe such disclosures are insightful insofar as they reveal differences in revenue growth and product mix between fiscal years. Thus, please either provide the requested disclosures in future filings or tell us more about why you believe all of your products fall within one product group and why you believe that revenue by product group disclosures are not required and do not provide additional insight into your business. With respect to your belief that all of your products fall within one product group, it is unclear to us why you consider pharmacy sales, photo lab sales, and grocery sales to be one product group.
18. Discontinued Operations and Restructuring
2004 Asset Rationalization, page 58
3. We have reviewed your response to prior comment 16. In future filings, please revise your MD&A regarding discontinuing operations to indicate why store closures under your asset rationalization plan that are within your core demographic areas are classified as discontinued operations. In particular, please disclose that you expect cash inflows related to these stores to be eliminated as a result of the store closures and that you do not expect cash inflows of the remaining stores to increase significantly as a result of a migration of customers from the closed stores after the disposal. Also, to the extent you have store closures during the period that are included within continuing operations, please disclose the factors that distinguished these stores from the store closures included within discontinued 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 Staff Accountant Yong Kim at (202) 942-2904. In her absence, direct your questions to Robyn Manuel at (202) 942-7786. Any other questions regarding disclosures issues may be directed to me at (202) 942-2905.
Sincerely,
George F. Ohsiek
Branch Chief
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Mail Stop 03-08
February 8, 2005
By Facsimile and U.S. Mail
Mr. Bennett L. Nussbaum
Senior Vice President and Chief Financial Officer
Winn-Dixie Stores, Inc.
5050 Edgewood Court
Jacksonville, FL 32254
RE: Winn-Dixie Stores, Inc.
Form 10-K for the fiscal year ended June 30, 2004
Filed August 26, 2004
Form 10-Q for the quarterly period ended September 22, 2004
File No. 1-3657
Dear Mr. Nussbaum:
We have reviewed the responses in your letter filed on
January
28, 2005 and have the following additional comments. We welcome
any
questions you may have about our comments or on any other aspect
of
our review. Feel free to call us at the telephone numbers listed
at
the end of this letter.
Form 10-K for the Fiscal Year Ended June 30, 2004
Financial Statements
Consolidated Statements of Shareholders` Equity, page 36
1. We have reviewed your response to prior comment 8 and are still
unclear as to why you believe it is appropriate to reflect
restricted
stock issuances and stock option exercises as increases in
retained
earnings. Absent a legislative restriction against setting up an
additional paid-in-capital (APIC) account, we would expect such
activity to be reflected in a contributed capital account (such as
APIC) as opposed to an earned capital account or retained
earnings.
Please either confirm you will revise future filings accordingly,
or
provide us additional support for your accounting/presentation,
including references to applicable authoritative literature, as
appropriate.
Notes to Consolidated Financial Statements
1. Summary of Significant Accounting Policies
(u) Business Reporting Segments, page 42
2. We have reviewed your response to prior comment 13 and continue
to
believe that to the extent revenues by product line are available,
such information should be disclosed pursuant to paragraph 37 of
SFAS
131. We believe such disclosures are insightful insofar as they
reveal differences in revenue growth and product mix between
fiscal
years. Thus, please either provide the requested disclosures in
future filings or tell us more about why you believe all of your
products fall within one product group and why you believe that
revenue by product group disclosures are not required and do not
provide additional insight into your business. With respect to
your
belief that all of your products fall within one product group, it
is
unclear to us why you consider pharmacy sales, photo lab sales,
and
grocery sales to be one product group.
18. Discontinued Operations and Restructuring
2004 Asset Rationalization, page 58
3. We have reviewed your response to prior comment 16. In future
filings, please revise your MD&A regarding discontinuing
operations
to indicate why store closures under your asset rationalization
plan
that are within your core demographic areas are classified as
discontinued operations. In particular, please disclose that you
expect cash inflows related to these stores to be eliminated as a
result of the store closures and that you do not expect cash
inflows
of the remaining stores to increase significantly as a result of a
migration of customers from the closed stores after the disposal.
Also, to the extent you have store closures during the period that
are included within continuing operations, please disclose the
factors that distinguished these stores from the store closures
included within discontinued 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 Staff Accountant Yong Kim at (202) 942-2904. In
her
absence, direct your questions to Robyn Manuel at (202) 942-7786.
Any other questions regarding disclosures issues may be directed
to
me at (202) 942-2905.
Sincerely,
George F. Ohsiek
Branch Chief
cc (via fax): D. Michael Byrum
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Mr. Nussbaum
Winn-Dixie Stores, Inc.
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