SEC Comment Letter for MOHAWK INDUSTRIES INC (MHK) (CIK 0000851968) (MHK) — Sep 18, 2008
MOHAWK INDUSTRIES INC (MHK) (CIK 0000851968)
Date: Sept. 18, 2008 · CIK: 0000851968 · Accession: 0000000000-08-047144
AI Filing Summary & Sentiment
Reasoning
File numbers found in text: 001-13697
Referenced dates: July 24, 2008
Letter
Mail Stop 3561 September 18, 2008 Jeffrey S. Lorberbaum Chairman, President, and Chief Executive Officer Mohawk Industries, Inc. P.O. Box 12069 160 S. Industrial Blvd. Calhoun, GA 30701
Re: Mohawk Industries, Inc. Form 10-K for Fiscal Year Ended December 31, 2007 Filed February 29, 2008 Definitive Proxy Statement on Schedule 14A Filed April 7, 2008 File No. 001-13697
Dear Mr. Lorberbaum:
We have reviewed your response lett er dated August 7, 2008 and have the following additional comment. You should comply with the comment in all future filings, as applicable. Please confirm in writin g that you will do so and also explain to us in sufficient detail how you intend to comply by providing us with your proposed revisions. If you disagree, we will consider your explanation as to why our comment is inapplicable or a revision is unnecessary. Pl ease be as detailed as necessary in your explanation.
Definitive Proxy on Schedule 14A
Compensation Discussion and Analysis, page 9 1. We note your response to comment two in our letter dated July 24, 2008 and we reissue that comment. Please provide us on a supplemental basis a detailed analysis regarding how disclosure of each of the metrics would cause you competitive harm. For example, you should explain how (1) disclosure of earnings per share for the company for a completed year and (2) each of the metrics could be “reverse engineered” to cause the company competitive harm. You have not adequately explained the reverse engineering process. Please
Jeffrey S. Lorberbaum Mohawk Industries, Inc. September 18, 2008 Page 2 explain how providing the earnings per share targets for the company for a completed year, “would give competitors insight into the Company’s assumptions and expectations about the future dir ection of the industry and the Company’s internal forecasting and stra tegies.” Please better expl ain how “competitors could then use that information when competing for customers, raw material supplies and other opportunities.” We are having the same difficulty understanding the reverse engineering process for earnings af ter capital charge ta rgets and inventory turn targets.
Please respond to this comment within 10 business days or tell us when you will provide us with a response. Detailed lett ers greatly facilitate our review. Please understand that we may have additional comm ents after reviewing your response to our comment.
You may contact Jennifer Thompson, Accounting Bran ch Chief, at (202) 551- 3737, if you have any questions regarding the financial statements and related matters. Please contact Ronald E. Alper, Staff Attorney, at (202) 551-3329, Ellie Bavaria, Special Counsel, at (202) 551-3238, or me, at (202) 551-3720, with any other questions.
Sincerely,
H. Christopher Owings
Assistant Director
Show Raw Text
Mail Stop 3561
September 18, 2008
Jeffrey S. Lorberbaum
Chairman, President, and Chief Executive Officer
Mohawk Industries, Inc.
P.O. Box 12069
160 S. Industrial Blvd.
Calhoun, GA 30701
Re: Mohawk Industries, Inc.
Form 10-K for Fiscal Year Ended December 31, 2007
Filed February 29, 2008
Definitive Proxy Statement on Schedule 14A
Filed April 7, 2008
File No. 001-13697
Dear Mr. Lorberbaum:
We have reviewed your response lett er dated August 7, 2008 and have the
following additional comment. You should comply with the comment in all future
filings, as applicable. Please confirm in writin g that you will do so and also explain to us
in sufficient detail how you intend to comply by providing us with your proposed revisions. If you disagree, we will consider your explanation as to why our comment is
inapplicable or a revision is unnecessary. Pl ease be as detailed as necessary in your
explanation.
Definitive Proxy on Schedule 14A
Compensation Discussion and Analysis, page 9
1. We note your response to comment two in our letter dated July 24, 2008 and we
reissue that comment. Please provide us on a supplemental basis a detailed
analysis regarding how disclosure of each of the metrics would cause you competitive harm. For example, you should explain how (1) disclosure of earnings per share for the company for a completed year and (2) each of the metrics could be “reverse engineered” to cause the company competitive harm. You have not adequately explained the reverse engineering process. Please
Jeffrey S. Lorberbaum
Mohawk Industries, Inc.
September 18, 2008 Page 2
explain how providing the earnings per share targets for the company for a
completed year, “would give competitors insight into the Company’s assumptions
and expectations about the future dir ection of the industry and the Company’s
internal forecasting and stra tegies.” Please better expl ain how “competitors could
then use that information when competing for customers, raw material supplies and other opportunities.” We are having the same difficulty understanding the
reverse engineering process for earnings af ter capital charge ta rgets and inventory
turn targets.
Please respond to this comment within 10 business days or tell us when you will
provide us with a response. Detailed lett ers greatly facilitate our review. Please
understand that we may have additional comm ents after reviewing your response to our
comment.
You may contact Jennifer Thompson, Accounting Bran ch Chief, at (202) 551-
3737, if you have any questions regarding the financial statements and related matters.
Please contact Ronald E. Alper, Staff Attorney, at (202) 551-3329, Ellie Bavaria, Special Counsel, at (202) 551-3238, or me, at (202) 551-3720, with any other questions.
Sincerely,
H. Christopher Owings
Assistant Director
cc: R. David Patton, Esq.
Via facsimile (404) 881-7777