Initial Letter Date |
Form filed |
Market Capitalization |
05/10/2012 |
10-K |
$ 2,280 M |
You disclose on page [xx] that total cash and cash equivalents, short-term investments and restricted cash held by your non-U.S. entities were $[xx] million as of December 31, 2011 versus $[xx] million as of December 31, 2010--a decrease of $[xx] million. You also indicate on page [xx] that you are dependent on cash repatriations from your various subsidiaries to cover your Swiss and U.S. cash needs. On page [xx], you disclose losses before taxes for your U.S. entities in each of the last three years. On page [xx], you disclose your intent to indefinitely reinvest unremitted earnings of your foreign subsidiaries of $[xx] million as of December 31, 2011 versus $[xx] million as of December 31, 2010 as shown in your 2010 Form 10-K--a decrease of $[xx] million. Please disclose the following on page [xx]: You would be required to accrue and pay U.S. taxes to repatriate these funds if they are needed for your U.S. operations, if true; Your intent is to permanently reinvest these funds outside of the U.S. and your current plans do not demonstrate a need to repatriate them to fund your U.S. operations, if true; Quantify the business reasons for the decrease of $[xx] million in total cash and cash equivalents, short-term investments and restricted cash held by your non-U.S. entities between balance sheet dates; and Disclose the amount of repatriations to the U.S. in each period presented. If either of the first two bullets above is untrue, then please revise your proposed disclosures in response to those bullets accordingly, including explaining how your tax treatment aligns with your intent regarding repatriations. If both of the first two bullets above are true, please also revise your disclosures to clarify why this is not inconsistent with your disclosure on page [xx] that your U.S. entities are dependent on cash repatriations. Please also disclose on page [xx] whether repatriations to the U.S. and/or Switzerland caused all or a part of the $[xx] million decrease in indefinitely reinvested unremitted earnings of foreign subsidiaries and, if so, the circumstances surrounding the repatriations, including how you determined that they did not impact your December 31, 2011 or future assertions regarding indefinite reinvestment. |