-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PyLioPhKEur32DPBG3lHhVX+l46gCgn3laDh2pGHvBryfG+pntp+c9UUodCVaUhe IxZiTjoc3f3xt9n05U2bOw== 0000950152-06-003414.txt : 20061004 0000950152-06-003414.hdr.sgml : 20061004 20060424163517 ACCESSION NUMBER: 0000950152-06-003414 CONFORMED SUBMISSION TYPE: CORRESP PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20060424 FILER: COMPANY DATA: COMPANY CONFORMED NAME: REYNOLDS & REYNOLDS CO CENTRAL INDEX KEY: 0000083588 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 310421120 STATE OF INCORPORATION: OH FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: CORRESP BUSINESS ADDRESS: STREET 1: ONE REYNOLDS WAY CITY: DAYTON STATE: OH ZIP: 45430 BUSINESS PHONE: 9374852000 MAIL ADDRESS: STREET 1: P.O. BOX 2608 CITY: DAYTON STATE: OH ZIP: 45401 CORRESP 1 filename1.htm corresp
 

February 21, 2006
Stephen Krikorian
Accounting Branch Chief
Office of Computers and On Line Services
Division of Corporation Finance
U.S. Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549
Re:   The Reynolds and Reynolds Company
Form 10-K for the Fiscal Year Ended September 30, 2004
Form 10-Q for the Fiscal Quarter Ended December 31, 2004
Form 10-Q for the Fiscal Quarter Ended March 31, 2005
Form 10-Q for the Fiscal Quarter Ended June 30, 2005
File No. 001-10147
Dear Mr. Krikorian,
On November 21, 2005, the Company submitted its “White Paper on Revenue Recognition Policy Regarding Multiple Element Arrangements” (the “White Paper”) to the Staff. Included in Section 11 of the White Paper were references to Appendices F – H which provided preliminary estimates of the effect of a change in the Company’s revenue recognition policy on its revenues, net income and balance sheets.
Management engaged Pricewaterhouse Coopers LLP and FTI Consulting Inc. to assist in preparing revised preliminary estimates of Section 11 of the White Paper using SOP 97-2 as the model of accounting policy, as described in the White Paper. Management has revised its preliminary estimates for fiscal years 2000 – 2004 which are presented in Appendices A – C of this letter and include a comparison with the preliminary estimates included in the White Paper. Since the analysis of 2005 is still in process, management cannot provide revised preliminary estimates for fiscal year 2005 or fiscal quarters of 2005 at this time.
The revised preliminary estimates are subject to change and are in the process of being reviewed by the Company’s independent registered public accounting firm, Deloitte and Touche LLP. The revised preliminary estimates have not been reviewed by the Company’s Audit Committee.

 

 

Please contact our counsel, John Huber of Latham and Watkins LLP at (202) 637-2242 regarding this letter.
Sincerely,
/s/ Gregory T. Geswein
Gregory T. Geswein
Senior Vice President and Chief Financial Officer
         
cc:   Division of Corporation Finance
 
      Craig C. Olinger, Deputy Chief Accountant
 
      Craig Wilson, Senior Assistant Chief Accountant
 
      Thomas Ferraro, Senior Staff Accountant
 
      Christopher J. White, Staff Accountant
    Office of the Chief Accountant
 
      Gerald A. Lopez, Associate Chief Accountant
 
      Pamela R. Schlosser, Professional Accounting Fellow
 
      Jeffrey S. Kessman, Assistant Chief Accountant
    Latham & Watkins, LLP
 
      John Huber, Esq.

 

 

Appendix A
Revised Preliminary Estimate of Revenue Effect
of Change in Revenue Recognition Policy
(Dollars in Thousands)
                                         
            Revised   Revised           11/21/05
            Preliminary   Preliminary           Preliminary
    As   Estimate of   Estimate of   %   Estimate of
    Originally   Increase   Proposed   Increase   Proposed
Fiscal Period   Reported   (Decrease)   Model   (Decrease)   Model
 
Fiscal Year Ended 9/30/00
   $ 954,687     ($ 1,814 )   $ 952,873       -0.2 %   $ 955,161  
Fiscal Year Ended 9/30/01
   $ 1,004,012     $ 605     $ 1,004,617       0.1 %   $ 1,003,189  
Fiscal Year Ended 9/30/02
   $ 992,383     ($ 6,307 )   $ 986,076       -0.6 %   $ 992,319  
Fiscal Year Ended 9/30/03
   $ 1,008,245     $ 81     $ 1,008,326       0.0 %   $ 1,011,819  
Fiscal Year Ended 9/30/04
   $ 982,241     $ 13,262     $ 995,503       1.4 %   $ 989,567  
Quarter Ended 12/31/03
   $ 248,403     $ 13,783     $ 262,186       5.5 %   $ 253,145  
Quarter Ended 3/31/04
   $ 249,492     $ 381     $ 249,873       0.2 %   $ 251,132  
Quarter Ended 6/30/04
   $ 242,830     ($ 721 )   $ 242,109       -0.3 %   $ 242,922  
Quarter Ended 9/30/04
   $ 241,516     ($ 181 )   $ 241,335       -0.1 %   $ 242,368  
The revised preliminary estimates presented above are not final and are subject to change.

3

 

Appendix B
Revised Preliminary Estimate of Net Income Effect
of Change in Revenue Recognition Policy
(Dollars in Thousands)
                                         
            Revised   Revised           11/21/05
            Preliminary   Preliminary           Preliminary
    As   Estimate of   Estimate of   %   Estimate of
    Originally   Increase   Proposed   Increase   Proposed
Fiscal Period   Reported   (Decrease)   Model   (Decrease)   Model
 
Fiscal Year Ended 9/30/00
   $ 116,596     ($ 3,215 )   $ 113,381       -2.8 %   $ 113,527  
Fiscal Year Ended 9/30/01
   $ 99,557     $ 155     $ 99,712       0.2 %   $ 99,209  
Fiscal Year Ended 9/30/02
   $ 67,449     ($ 950 )   $ 66,499       -1.4 %   $ 67,628  
Fiscal Year Ended 9/30/03
   $ 109,800     ($ 291 )   $ 109,509       -0.3 %   $ 111,048  
Fiscal Year Ended 9/30/04
   $ 92,643     $ 2,312     $ 94,955       2.5 %   $ 93,557  
Quarter Ended 12/31/03
   $ 23,822     $ 2,796     $ 26,618       11.7 %   $ 24,263  
Quarter Ended 3/31/04
   $ 26,357     ($ 818 )   $ 25,539       -3.1 %   $ 25,450  
Quarter Ended 6/30/04
   $ 22,019     $ 227     $ 22,246       1.0 %   $ 22,602  
Quarter Ended 9/30/04
   $ 20,445     $ 107     $ 20,552       0.5 %   $ 21,242  
The revised preliminary estimates presented above are not final and are subject to change.

4

 

Appendix C
Revised Preliminary Estimate of Balance Sheet Effect
of Change in Revenue Recognition Policy
(Dollars in Thousands)
                                                 
            Revised   Revised           Change   11/21/05
            Preliminary   Preliminary   Total   as a   Preliminary
    As   Estimate of   Estimate of   Assets   % of Total   Estimate of
    Originally   Increase   Proposed   or   Assets or   Proposed
Fiscal Period   Reported   (Decrease)   Model   Liabilities   Liabilities   Model
Other Current Assets (including Deferred Costs)                                        
As of September 30, 2002
   $ 16,645     $ 17,929     $ 34,574     $ 1,090,119       1.6 %   $ 35,177  
As of September 30, 2003
   $ 19,890     $ 17,359     $ 37,249     $ 1,092,653       1.6 %   $ 36,922  
As of September 30, 2004
   $ 25,126     $ 7,870     $ 32,996     $ 1,026,757       0.8 %   $ 36,350  
 
                                                
Deferred Revenues
                                                
As of September 30, 2002
   $ 24,404     $ 20,045     $ 44,449     $ 617,099       3.2 %   $ 45,767  
As of September 30, 2003
   $ 33,704     $ 19,964     $ 53,668     $ 617,742       3.2 %   $ 51,493  
As of September 30, 2004
   $ 27,871     $ 6,703     $ 34,574     $ 556,940       1.2 %   $ 38,335  
 
                                                
Shareholders’ Equity
                                   % Change        
As of September 30, 2002
   $ 473,020     ($ 1,287 )   $ 471,733               -0.3 %   $ 471,324  
As of September 30, 2003
   $ 474,911     ($ 1,578 )   $ 473,333               -0.3 %   $ 474,463  
As of September 30, 2004
   $ 469,817     $ 734     $ 470,551               0.2 %   $ 470,283  
The revised preliminary estimates presented above are not final and are subject to change.

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