SEC Company Response from EVERLAST WORLDWIDE INC (CIK 0000934795) — Jun 24, 2005
EVERLAST WORLDWIDE INC (CIK 0000934795)
Date: June 24, 2005 · CIK: 0000934795 · Accession: 0000921895-05-000995
AI Filing Summary & Sentiment
Letter
Re: EVERLAST WORLDWIDE, INC. COMMENT LETTER TO FORM 10-K (SEC FILE NO. 0-25918)
sec document
June 21, 2005
Securities and Exchange Commission Judiciary Plaza 450 Fifth Street, N.W. DIRECT DIAL: 212.451.2220 Washington, D.C. 20549-0404 EMAIL: RFRIEDMAN@OLSHANLAW.COM Attention: Brian V. McAllister
Ladies and Gentlemen:
Upon further conversation with the Company's auditors, we have determined that the following should replace the previous response to Question 12 of the Comment Letter to Form 10-K, originally forwarded to your office on June 20, 2005:
Response to Question 12 -----------------------
The Company issued its mandatorily redeemable preferred stock during 2000 under the guidance of ASR 268 and Rule 5-02.28 of Regulation S-X (prior to the issuance of EITF Topic D-98). At the date of issuance of these shares, the Company estimated the fair value and computed it to be equal to its redemption value. This valuation utilized an appropriate market rate of interest at that time, and included the valuation of the future stream of dividend payments. As a result of there being no excess of consideration paid over the carrying value upon each annual redemption, there is no impact on earnings per share, as discussed in EITF Topic D-42.
Upon adoption of SFAS No. 150, the Company reclassified the carrying value of these preferred shares to a liability, with no cumulative transition adjustment recognized. The Company's previous balance sheet classification was between debt and equity.
Please direct any questions or comments concerning this response to Gary J. Dailey at (212) 239-0990 or to the undersigned at (212) 451-2220.
Very truly yours,
/s/ Robert H. Friedman
----------------------
Robert H. Friedman
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June 21, 2005
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W. DIRECT DIAL: 212.451.2220
Washington, D.C. 20549-0404 EMAIL: RFRIEDMAN@OLSHANLAW.COM
Attention: Brian V. McAllister
Re: EVERLAST WORLDWIDE, INC. COMMENT LETTER TO
FORM 10-K (SEC FILE NO. 0-25918)
Ladies and Gentlemen:
Upon further conversation with the Company's auditors, we have
determined that the following should replace the previous response to Question
12 of the Comment Letter to Form 10-K, originally forwarded to your office on
June 20, 2005:
Response to Question 12
-----------------------
The Company issued its mandatorily redeemable preferred stock during
2000 under the guidance of ASR 268 and Rule 5-02.28 of Regulation
S-X (prior to the issuance of EITF Topic D-98). At the date of
issuance of these shares, the Company estimated the fair value and
computed it to be equal to its redemption value. This valuation
utilized an appropriate market rate of interest at that time, and
included the valuation of the future stream of dividend payments. As
a result of there being no excess of consideration paid over the
carrying value upon each annual redemption, there is no impact on
earnings per share, as discussed in EITF Topic D-42.
Upon adoption of SFAS No. 150, the Company reclassified the carrying
value of these preferred shares to a liability, with no cumulative
transition adjustment recognized. The Company's previous balance
sheet classification was between debt and equity.
Please direct any questions or comments concerning this response to
Gary J. Dailey at (212) 239-0990 or to the undersigned at (212) 451-2220.
Very truly yours,
/s/ Robert H. Friedman
----------------------
Robert H. Friedman
cc: George Horowitz
Gary J. Dailey