SEC Company Response from AMDOCS (DOX) — Feb 24, 2020
AMDOCS LTD
Date: Feb. 24, 2020 · CIK: 0001062579 · Accession: 0001193125-20-046438
AI Filing Summary & Sentiment
File numbers found in text: 001-14840
Referenced dates: February 11, 2020
Letter
Office of Technology Division of Corporation Finance U.S. Securities and Exchange Commission 100 F Street, N.E. Washington, DC 20549-3628
Dear Ms. Akst and Ms. Kindelan:
On behalf of our client, Amdocs Limited, a Guernsey company (the “Company”), we are responding to the comment from the Staff (the “Staff”) of the Securities and Exchange Commission (the “Commission”) relating to the Company’s Annual Report on Form 20-F for the fiscal year ended September 30, 2019 (the “Form 20-F”) contained in the Staff’s letter dated February 11, 2020 (the “Comment Letter”).
Set forth below is the Company’s response to the Staff’s comment. For convenience, the Staff’s comment is repeated below in italics, followed by the Company’s response to the comment.
Item 5. Operating and Financial Review and Prospects
Liquidity and Capital Resources, page 37
1. We note your normalized free cash flow measure excludes charges that required cash settlement. Such charges cannot be excluded from non-GAAP liquidity measures per Item 10(e)(1)(ii)(A) of Regulation S-K. Please remove the measure or explain how it complies.
Response: We respectfully advise the Staff that the Company considers “Normalized Free Cash Flow” to be a measure of its operating performance rather than a liquidity measure. “Normalized Free Cash Flow,” as defined by the Company, is one of the measures intended to provide management, investors and other parties with an indicator of the Company’s operating performance that is useful in comparing the Company’s performance to other companies and to its performance in previous periods, because it excludes potential differences that the Company believes are unrelated to its ongoing operating performance. Management does not currently use “Normalized Free Cash Flow” to assess the Company’s ability to meet its short-term obligations, and therefore does not consider it to be a liquidity measure.
Ms. Megan Akst, Senior Staff Accountant
Ms. Melissa Kindelan, Senior Staff Accountant
Office of Technology
Division of Corporation Finance
February 24, 2020
Having said that, the Company respectfully submits that it intends to remove “Normalized Free Cash Flow” from its annual reports on Form 20-F for future fiscal years and other reports filed with the Commission.
Please do not hesitate to contact me at (212) 450-4111, (212) 701-5111 (fax) or michael.kaplan@davispolk.com, if you have any questions regarding the foregoing or if I can provide any additional information.
Very truly
yours,
/s/ Michael Kaplan
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CORRESP 1 filename1.htm CORRESP New York Northern California Washington DC São Paulo London Paris Madrid Tokyo Beijing Hong Kong Michael Kaplan Davis Polk & Wardwell LLP 450 Lexington Avenue New York, NY 10017 212 450 4111 tel 212 701 5111 fax michael.kaplan@davispolk.com February 24, 2020 Re: Amdocs Limited Form 20-F for the Fiscal Year Ended September 30, 2019 Filed December 16, 2019 File No. 001-14840 Ms. Megan Akst, Senior Staff Accountant Ms. Melissa Kindelan, Senior Staff Accountant Office of Technology Division of Corporation Finance U.S. Securities and Exchange Commission 100 F Street, N.E. Washington, DC 20549-3628 Dear Ms. Akst and Ms. Kindelan: On behalf of our client, Amdocs Limited, a Guernsey company (the “Company”), we are responding to the comment from the Staff (the “Staff”) of the Securities and Exchange Commission (the “Commission”) relating to the Company’s Annual Report on Form 20-F for the fiscal year ended September 30, 2019 (the “Form 20-F”) contained in the Staff’s letter dated February 11, 2020 (the “Comment Letter”). Set forth below is the Company’s response to the Staff’s comment. For convenience, the Staff’s comment is repeated below in italics, followed by the Company’s response to the comment. Item 5. Operating and Financial Review and Prospects Liquidity and Capital Resources, page 37 1. We note your normalized free cash flow measure excludes charges that required cash settlement. Such charges cannot be excluded from non-GAAP liquidity measures per Item 10(e)(1)(ii)(A) of Regulation S-K. Please remove the measure or explain how it complies. Response: We respectfully advise the Staff that the Company considers “Normalized Free Cash Flow” to be a measure of its operating performance rather than a liquidity measure. “Normalized Free Cash Flow,” as defined by the Company, is one of the measures intended to provide management, investors and other parties with an indicator of the Company’s operating performance that is useful in comparing the Company’s performance to other companies and to its performance in previous periods, because it excludes potential differences that the Company believes are unrelated to its ongoing operating performance. Management does not currently use “Normalized Free Cash Flow” to assess the Company’s ability to meet its short-term obligations, and therefore does not consider it to be a liquidity measure. Ms. Megan Akst, Senior Staff Accountant Ms. Melissa Kindelan, Senior Staff Accountant Office of Technology Division of Corporation Finance February 24, 2020 Having said that, the Company respectfully submits that it intends to remove “Normalized Free Cash Flow” from its annual reports on Form 20-F for future fiscal years and other reports filed with the Commission. Please do not hesitate to contact me at (212) 450-4111, (212) 701-5111 (fax) or michael.kaplan@davispolk.com, if you have any questions regarding the foregoing or if I can provide any additional information. Very truly yours, /s/ Michael Kaplan Michael Kaplan cc: Via E-mail Shuky Sheffer, Chief Executive Officer Tamar Rapaport-Dagim, Chief Financial Officer and Chief Operating Officer Michal Topolski, General Counsel 2