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Re:
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Regal-Beloit Corporation
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1.
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The Company is responsible for the adequacy and accuracy of the disclosure in the Filings.
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2.
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Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the Filings.
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3.
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The Company may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.
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Very truly yours,
REGAL-BELOIT CORPORATION
By: /s/ Mark J. Gliebe
Mark J. Gliebe
President and Chief Executive Officer
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![]() August 10, 2011
Via EDGAR and FEDERAL EXPRESS
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ATTORNEYS AT LAW
777 EAST WISCONSIN AVENUE
MILWAUKEE, WI 53202-5306
414.271.2400 TEL
414.297.4900 FAX
www.foley.com
WRITER’S DIRECT LINE
414.297.5644
jrothman@foley.com EMAIL
CLIENT/MATTER NUMBER
015428-0122
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||
Mr. Kevin L. Vaughn
Accounting Branch Chief
U.S. Securities and Exchange Commission
Division of Corporation Finance
100 F Street, N.E.
Washington, DC 20549
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Re:
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Regal-Beloit Corporation
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1.
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We note you attribute changes in revenue and cost of sales to changes in volume and pricing. Please revise future filings to quantify the impact of changes in volume and pricing on your results of operations. Refer to Item 303(A)(3)(iii) of Regulation S-K.
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2.
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We note your disclosure in Note 11 on page 58 that no U.S. deferred taxes have been provided on the undistributed non-U.S. subsidiary earnings as they are considered to be permanently invested. Please expand your liquidity disclosures in future filings to discuss the amount of investments held by foreign subsidiaries that would be subject to a potential tax impact associated with the repatriation of undistributed earnings on foreign subsidiaries. Please further provide a discussion of any known trends, demands or uncertainties as a result of this policy that are reasonably likely to have a material effect on the ability to fund domestic operations or that may be relevant to your financial flexibility with regards to the EPC acquisition or other possible future events. Refer to Item 303(a)(1) of Regulation S-K and Section IV of SEC Release 33-8350.
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3.
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Please revise future filings to disclose the fair value and assumptions used for these awards for each year for which an income statement is presented. Refer to paragraph 718-10-50 of the Accounting Standards Codification.
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4.
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FASB ASC 450 requires a company to disclose the amount or range of reasonably possible loss, as that term is defined. It does not appear that you have provided any quantitative information here or in your Form 10-Q as of March 31, 2011. Please revise future filings to disclose the required information. If you conclude that you cannot estimate a range of reasonably possible losses on any of the matters, please disclose this fact in your future filings in accordance with FASB ASC 450.
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5.
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Please reconcile the amounts shown in the table at the bottom of page 61 with the amounts reflected in the Statements of Comprehensive Income (Loss) on page 42.
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6.
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The long-lived assets by geographic area disclosed here appears to include intangible assets. Please explain to us how your disclosure here considers the guidance in paragraph 280-10-55-23 of the FASB Accounting Standards Codification.
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cc:
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Gary Newberry
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Martin James
|
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Securities and Exchange Commission
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Mark J. Gliebe
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Chuck A. Hinrichs
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Peter C. Underwood
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Peter Rowley
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Regal Beloit Corporation
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Benjamin F. Garmer, III
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Jessica Lochmann Allen
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Foley & Lardner LLP
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EXHIBIT A
|
|||||
Footnote 14 (Page 61)
|
|||||
2010
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2009
|
||||
Gain recognized in Other Comprehensive Income: (mark to market)
|
29,067
|
49,582
|
|||
Tax Effect
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(11,045)
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(18,844)
|
|||
Change in fair value of hedging activities per Statement of Comprehensive Income (Loss)
|
18,022
|
30,738
|
|||
Amounts reclassified from Other Comprehensive Income (Loss):
|
|||||
Gain (Loss) recognized in Net Sales
|
47
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(3,261)
|
|||
Gain (Loss) recognized in Cost of Sales
|
7,412
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(65,518)
|
|||
Loss recognized in Interest Expense
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(12,657)
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(11,468)
|
|||
Total Recognized Loss
|
(5,198)
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(80,247)
|
|||
Tax Effect
|
1,976
|
30,455
|
|||
Total After Tax Recognized Loss
|
(3,222)
|
(49,792)
|
|||
Hedging Activities Reclassified into Earnings from Other Comprehensive Income per Statement of Comprehensive Income (Loss)
|
3,222
|
49,792
|
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