November 29, 2011
VIA EDGAR CORRESPONDENCE
Mr. Rufus Decker
Accounting Branch Chief
United States Securities and Exchange Commission
Division of Corporation Finance
100 F Street, NE
Washington, DC 20549
Re: | Solo Cup Company |
Form 10-K for Fiscal Year ended December 26, 2010
Filed March 17, 2011
Form 10-Q/A#1 for Fiscal Quarter ended June 26, 2011
Filed August 12, 2011
File No. 333-116843
Dear Mr. Decker:
Set forth below are the table and charts that we provided to members of the staff of the Securities and Exchange Commission's Division of Corporation Finance (the “Staff”) in connection with our November 14, 2011 call with members of the Staff. We referred to these table and charts in our response letter dated November 23, 2011.
$ in thousands (debit)/credit | ||||||||||||||
Description of adjustments that would be required in connection with proposed restatement: | Opening Equity | 2007 | 2008 | 2009 | Total | |||||||||
Asset disposal errors | (1,200 | ) | (300 | ) | (4,300 | ) | 5,800 | — | ||||||
AP cut-off error | — | 800 | 300 | (1,100 | ) | — | ||||||||
Deferred tax adjustment | 8,000 | (2,400 | ) | (700 | ) | (5,090 | ) | (190 | ) | |||||
Total Required Adjustment | 6,800 | (1,900 | ) | (4,700 | ) | (390 | ) | (190 | ) | |||||
As Stated | ||||||||||||||
Revenue | 2,110,102 | 1,847,034 | 1,502,552 | |||||||||||
Operating Income (Loss) | 55,283 | 65,598 | 30,102 | |||||||||||
Loss from continuing operations before income taxes | (25,499 | ) | (10,133 | ) | (42,045 | ) | ||||||||
Loss from continuing operations | (6,038 | ) | (12,200 | ) | (35,656 | ) | ||||||||
Net Income (Loss) | 71,081 | (12,051 | ) | (35,656 | ) | |||||||||
Operating Cash Flow (used in) provided by | 95,578 | 131,939 | 137,937 | |||||||||||
Total Assets | 1,203,175 | 1,073,795 | 987,418 | |||||||||||
As Adjusted | ||||||||||||||
Revenue | 2,110,102 | 1,847,034 | 1,502,552 | |||||||||||
Operating Income (Loss) | 55,783 | 61,598 | 34,802 | |||||||||||
Loss from continuing operations before income taxes | (24,999 | ) | (14,133 | ) | (37,345 | ) | ||||||||
Loss from continuing operations | (7,938 | ) | (16,900 | ) | (36,046 | ) | ||||||||
Net Income (Loss) | 69,181 | (16,751 | ) | (36,046 | ) | |||||||||
Operating Cash Flow (used in) provided by | 95,578 | 131,939 | 137,937 | |||||||||||
Total Assets | 1,201,675 | 1,067,995 | 981,618 | |||||||||||
Adjustments | ||||||||||||||
Revenue | — | — | — | |||||||||||
Operating Income (Loss) | 500 | (4,000 | ) | 4,700 | ||||||||||
Loss from continuing operations before income taxes | 500 | (4,000 | ) | 4,700 | ||||||||||
Loss from continuing operations | (1,900 | ) | (4,700 | ) | (390 | ) | ||||||||
Net Income (Loss) | (1,900 | ) | (4,700 | ) | (390 | ) | ||||||||
Operating Cash Flow (used in) provided by | — | — | — | |||||||||||
Total Assets | (1,500 | ) | (5,800 | ) | (5,800 | ) | ||||||||
Adjustments as Percentage of As Stated Balances | ||||||||||||||
Revenue | — | — | — | |||||||||||
Operating Income (Loss) | 0.9 | % | (6.1 | )% | 15.6 | % | ||||||||
Loss from continuing operations before income taxes | (2.0 | )% | 39.5 | % | (11.2 | )% | ||||||||
Loss from continuing operations | 31.5 | % | 38.5 | % | 1.1 | % | ||||||||
Net Income (Loss) | (2.7 | )% | 39.0 | % | 1.1 | % | ||||||||
Operating Cash Flow (used in) provided by | — | — | — | |||||||||||
Total Assets | (0.1 | )% | (0.5 | )% | (0.6 | )% |
2
($ in millions)
If you have any further comments or questions, please call me at 847-444-3201.
Very truly yours,
SOLO CUP COMPANY
By: /s/ Robert D. Koney, Jr.
Robert D. Koney, Jr.
Executive Vice President and Chief Financial Officer
cc: Nudrat Salik, Securities and Exchange Commission
5