SEC Comment Letter for BED BATH & BEYOND, INC. (NXH, BBBYW) (CIK 0001130713) (NXH) — May 31, 2011
BED BATH & BEYOND, INC. (NXH, BBBYW) (CIK 0001130713)
Date: May 31, 2011 · CIK: 0001130713 · Accession: 0000000000-11-033442
AI Filing Summary & Sentiment
Reasoning
File numbers found in text: 000-49799
Letter
May 31, 2011 Via E-mail Stephen J. Chesnut Senior Vice President, Finance and Risk Management Overstock.com, Inc. 6350 South 3000 East Salt Lake City, UT 84121
Re: Overstock.com, Inc. Form 10-Q for the Quarterly Period Ended September 30, 2010 Filed October 29, 2010 File No. 000-49799
Dear Mr. Chesnut: We have reviewed your response dated May 20, 2011 and considered the additional information provided via conference calls on May 23 and May 26, 2011 and have the following comments. Please respond to this letter within ten business days by amending your Form 10-K for the year ended December 31, 2010, or by advising us when you will provide the requested response.
1. You have represented that the provision for sale s returns recorded in the fourth quarter of 2007 and $4 million plus reduction in your allowance in the fourth quarter of 2009 resulted from the application of a consis tent systematic methodology for determining your sales return allowance. With respect to return re duction initiatives, you have represented to us that you m onitored the impact of these in itiatives in 2009, particularly during Q4 2009 following the introduction of the new supplier agreement, and determined at the end of 2009 that there wa s sufficient evidence of a sustained downward trend in returns from these initiatives (versu s temporary or seasonal trends) and therefore made a one-time adjustment to reduce your sale s returns allowance. Please revise the notes to your financial statements to discu ss this change in estimate during the fourth quarter of 2009 by providing the disclosure se t forth in FASB ASC 250-10-50-4. Please also expand your Management’s Discussion and Analysis of Financial Condition and Results of Operations to provide insights of the significant fact ors and the subjective judgments involved behind the estimate change. Lastly, quantify the dollar amount of the change in the provision and a llowance in the fourth quarter of 2009 and its impact on the quarter and your results for the year.
Stephen J. Chesnut Overstock.com, Inc. May 31, 2011 Page 2
2. Your April 11, 2011 response states you discovere d an error in your earlier determination of the sales return allowance by using ne t amounts recorded for the period of Q1 2007 through Q3 2009. You represented that such erro rs are isolated to your balance sheets and Schedule II and have no impact on your statement of operations. In the interests of allowing consistent calculations to be made by users of your financia l statements, please consider reflecting the corrections for these errors in your amended filing.
3. Please submit your letter da ted May 20, 2011 on EDGAR. You may contact Robert Babula, Staff Accountant, at 202-5 51-3339 or Donna Di Silvio, Staff Accountant, at 202-551-3202 if you have questions regarding these comments on the financial statements and related matters. Pl ease contact me at 202- 551-3720 with any other questions.
Sincerely,
/s/ Andrew D. Mew
Andrew D. Mew Accounting Branch Chief
Show Raw Text
May 31, 2011
Via E-mail
Stephen J. Chesnut Senior Vice President, Finance and Risk Management Overstock.com, Inc. 6350 South 3000 East Salt Lake City, UT 84121
Re: Overstock.com, Inc. Form 10-Q for the Quarterly Period Ended September 30, 2010
Filed October 29, 2010 File No. 000-49799
Dear Mr. Chesnut:
We have reviewed your response dated May 20, 2011 and considered the additional
information provided via conference calls on May 23 and May 26, 2011 and have the following
comments.
Please respond to this letter within ten business days by amending your Form 10-K for
the year ended December 31, 2010, or by advising us when you will provide the requested response.
1. You have represented that the provision for sale s returns recorded in the fourth quarter of
2007 and $4 million plus reduction in your allowance in the fourth quarter of 2009 resulted from the application of a consis tent systematic methodology for determining
your sales return allowance. With respect to return re duction initiatives, you have
represented to us that you m onitored the impact of these in itiatives in 2009, particularly
during Q4 2009 following the introduction of the new supplier agreement, and
determined at the end of 2009 that there wa s sufficient evidence of a sustained downward
trend in returns from these initiatives (versu s temporary or seasonal trends) and therefore
made a one-time adjustment to reduce your sale s returns allowance. Please revise the
notes to your financial statements to discu ss this change in estimate during the fourth
quarter of 2009 by providing the disclosure se t forth in FASB ASC 250-10-50-4. Please
also expand your Management’s Discussion and Analysis of Financial Condition and
Results of Operations to provide insights of the significant fact ors and the subjective
judgments involved behind the estimate change. Lastly, quantify the dollar amount of the change in the provision and a llowance in the fourth quarter of 2009 and its impact on the
quarter and your results for the year.
Stephen J. Chesnut
Overstock.com, Inc.
May 31, 2011 Page 2
2. Your April 11, 2011 response states you discovere d an error in your earlier determination
of the sales return allowance by using ne t amounts recorded for the period of Q1 2007
through Q3 2009. You represented that such erro rs are isolated to your balance sheets and
Schedule II and have no impact on your statement of operations. In the interests of
allowing consistent calculations to be made by users of your financia l statements, please
consider reflecting the corrections for these errors in your amended filing.
3. Please submit your letter da ted May 20, 2011 on EDGAR.
You may contact Robert Babula, Staff Accountant, at 202-5 51-3339 or Donna Di Silvio,
Staff Accountant, at 202-551-3202 if you have questions regarding these comments on the
financial statements and related matters. Pl ease contact me at 202- 551-3720 with any other
questions.
Sincerely,
/s/ Andrew D. Mew
Andrew D. Mew Accounting Branch Chief