CORRESP 1 filename1.htm corresp
February 2, 2009
VIA EDGAR
Mr. Mark Kronforst
Accounting Branch Chief
Division of Corporation Finance
United States Securities and Exchange Commission
Washington, D.C. 20549
Re:   JDA Software Group, Inc.
Response to your letter dated January 16, 2009 concerning Definitive Proxy
Statement on Schedule 14A filed April 11, 2008, File No. 000-27876
Dear Mr. Kronforst:
     We have received your letter dated January 16, 2009 regarding your additional comments in connection with our response letter dated December 23, 2008 and the above-referenced filing. Below is our written response to each comment.
Definitive Proxy Statement Filed April 11, 2008
Comment 1. – Executive Compensation Elements in 2007, Annual Bonuses, page 20. We note your response to prior comment number 9. We do not agree with your conclusion that tabular disclosure of bonus awards under your non-equity compensation plan does not need to be made in columns (c) through (e) of the Grants of Plan-Based Awards table because all cash bonuses earned by your named executive officers were paid prior to the filing date of your definitive proxy statement and were reflected in the Summary Compensation Table. Item 402(d) of Regulation S-K requires disclosure concerning each grant of an award made to a named executive officer in the last completed fiscal year under any plan. See also Question 119.05 of the Division of Corporation Finance’s Compliance & Disclosure Interpretations. The amounts specified by Item 402(d)(2)(iii) of Regulation S-K should be disclosed in columns (c) through (e) of your Grants of Plan-Based Awards table; the heading over the columns may be changed to “Estimated possible payouts under non-equity incentive plan awards.” See Question 120.02 of the Division of Corporation Finance’s Compliance & Disclosure Interpretations of Regulation S-K. In your response letter, please include a representation that you will comply with this in future filings.
     We confirm that we will disclose our non-equity incentive plan bonus award amounts in columns (c) through (e) of our Grants of Plan-Based Awards table in all future filings with the SEC

 

 

Mr. Mark Kronforst
Page 2
February 2, 2009
pursuant to Item 402(d)(1) and Item 402(d)(2)(iii) of Regulation S-K. We may change the heading over columns (c) through (e) to “Estimated Potential Payouts Under Non-Equity Incentive Plan Awards” pursuant to the guidance provided under Question 120.02 of the Division of Corporation Finance’s Compliance & Disclosure Interpretations of Regulation S-K.
     For example, the bonuses reported for the Named Executive Officers (“NEO”) in the Summary Compensation Table represent the total dollar value of non-equity cash incentive awards earned by the NEO for services performed under the annual Cash Incentive Plan for 2007. The total cash incentive awards were accrued and expensed by the Company in 2007, however, a portion of the awards were not actually paid until February 2008.
     The target and actual bonuses earned by the NEO under the 2007 Cash Incentive Plan were discussed in our previous response dated December 23, 2008 and would be reported in the Grants of Plan-Based Awards Table under columns (c) through (e) as follows:
                                 
    Estimated Potential Payouts Under 2007 Non-Equity
    Incentive Plan Awards
            Actual   Actual   Total Actual
    Target   Awards   Awards   Awards
    Awards   Paid in 2007   Paid in 2008   Paid
    ($)   ($)   ($)   ($)
Hamish N. Brewer
   $ 350,000     $ 218,750     $ 126,000     $ 344,750  
Kristen L. Magnuson
     225,000       140,625       81,000       221,625  
Christopher J. Koziol
     275,000       171,875       99,000       270,875  
Philip Boland
     250,000       161,200       90,000       251,200  
Laurent F. Ferrere II
     250,000       62,500       90,000       152,500  
Comment 2. – Equity-Based Awards, page 21. We note your response to prior comment number 11. We do not agree with your conclusion that tabular disclosure of bonus awards under your equity compensation plan does not need to be made in columns (f) through (h) of your Grants of Plan-Based Awards table because all awards earned by your named executive officers were issued prior to the filing date of your definitive proxy statement, and were reflected in the Summary Compensation Table and disclosed under column (i) of your Grants of Plan-Based Awards table. The amounts specified by Item 402(d)(2)(iv) of Regulation S-K should be disclosed in columns (f) through (h) of your Grants of Plan-Based Awards table; you may change the heading over the columns to “Estimated possible payouts under the equity incentive plan awards.” See Question 120.02 of the Division of Corporation Finance’s Compliance & Disclosure Interpretations of Regulation S-K. In your response letter, please include a representation that you will comply with this in future filings.

2

 

Mr. Mark Kronforst
Page 3
February 2, 2009
     We confirm that we will disclose our bonus awards under our equity compensation plan in columns (f) through (h) of our Grants of Plan-Based Awards table in all future filings with the SEC pursuant to Item 402(d)(1) and Item 402(d)(2)(iv) of Regulation S-K. We may change the heading over columns (f) through (h) to “Estimated Potential Payouts Under Equity Incentive Plan Awards” pursuant to the guidance provided under Question 120.02 of the Division of Corporation Finance’s Compliance & Disclosure Interpretations of Regulation S-K.
     For example, the NEO stock awards presented in the Summary Compensation Table represent the total grant date fair value of the contingently issuable restricted stock unit awards granted under the Integration Plan. Pursuant to the instructions in Item 402 (c) (2) (v), column (e) of the Summary Compensation Table should only include the dollar amount of the stock awards recognized for financial statement reporting purposes with respect to the fiscal year in accordance with FAS 123R. Since only two-thirds of the grant date fair value was recognized by the Company as share-based compensation in 2007 using graded vesting, the reported amounts in the Summary Compensation Table should have been reported in column (e) as follows:
                 
    Stock Awards ($)  
    As Reported     Corrected  
Contingently Issuable Restricted Stock Unit Awards:
                
Hamish N. Brewer
   $ 1,109,024     $ 739,352  
Kristen L. Magnuson
     554,509       369,675  
Christopher J. Koziol
     776,310       517,543  
Philip Boland
     332,708       221,807  
Laurent F. Ferrere II
     306,544       204,356  
 
            
 
     3,079,095     $ 2,052,733  
 
                
Restricted Stock Awards:
                
Laurent F. Ferrere II
     394,800       49,350  
 
            
 
   $ 3,473,895     $ 2,1802,083  
 
            
     The Company recognized share-based compensation in 2007 on the contingently issuable restricted stock unit awards pursuant to FAS 123R; however, none of the awards were vested as of December 31, 2007. The target, maximum and actual contingently issuable restricted stock awards issued to the NEO were previously provided in our response dated December 23, 2008.
     The target, maximum and actual stock awards for each NEO would be reported in the Grants of Plan-Based Awards Table in columns (f) through (g) and the grant date fair values of the awards would be reported under column (l) as follows:

3

 

Mr. Mark Kronforst
Page 4
February 2, 2009
                                     
        Estimated Potential Payouts Under    
        Equity Incentive Plan Awards    
        Target   Maximum   Actual   Grant Date
    Grant   Awards   Awards   Awards   Fair Value of
    Date   (#)   (#)   (#)   Awards ($)
     
Contingently Issuable Restricted Stock Awards:
                                    
 
                                    
Hamish N. Brewer
  3/13/07
5/14/07 		    65,905
8,721		       82,381
10,901		       65,410
8,656		     $ 955,640
153,384		  
 
                                   
 
        74,626       93,282       74,066     $ 1,109,024  
 
                                    
Kristen L. Magnuson
  3/13/07
5/14/07 		    32,953
4,360		       41,191
5,450		       32,706
4,327		     $ 477,835
76,674		  
 
                                   
 
        37,313       46,641       37,033     $ 554,509  
 
                                    
Christopher J. Koziol
  3/13/07
5/14/07 		    46,134
6,104		       57,668
7,630		       45,788
6,058		     $ 668,963
107,347		  
 
                                   
 
        52,238       65,298       51,846     $ 776,310  
 
                                    
Philip Boland
  3/13/07
5/14/07 		    19,772
2,616		       24,715
3,270		       19,624
2,596		     $ 286,707
46,001		  
 
                                   
 
        22,388       27,985       22,220     $ 332,708  
 
                                    
Laurent F. Ferrere II
  7/20/07     15,000       18,750       14,888     $ 306,544  
 
                                    
Restricted Stock Awards:
                                    
Laurent F. Ferrere II
  7/9/07                     20,000     $ 394,800  
     The footnotes previously included with the Grants of Plan-Based Awards Table would still apply.
     Please feel free to contact me at telephone: (480) 308-3421, Michael Bridge, Senior Vice President and General Counsel, at telephone: (480) 308-3460, or Paul Hurdlow at DLA Piper US LLP, JDA’s outside counsel, at telephone: (512) 457-7020 should you have any further questions or comments.

4

 

Mr. Mark Kronforst
Page 5
February 2, 2009
         
  Sincerely,
 		  
  /s/ Kristen L. Magnuson    
  Kristen L. Magnuson   
  Executive Vice President and
Chief Financial Officer 		  
 

5