TheCorporateCounsel.net

April 7, 2015

Survey Results: Conflict Minerals

We recently posted the results from this year’s survey on conflict minerals (here are past survey results):

1. We will file a Form SD this year
– Yes, and it will be our 2nd year filing – 90%
– Yes, but it will be just our 1st year filing – 0%
– No, because we had business changes – 0%
– No, for other reasons than business changes – 0%
– Not applicable – 10%

2. We will use the specific original determination wording for calendar year ’14 even though it’s currently not mandated
– Yes – 24%
– No – 59%
– Not applicable – 17%

3. We have decided to exclude non-metallic forms of 3TG per the letter from the industry groups posted on the SEC’s comment page
– Yes – 18%
– No – 25%
– Not applicable – 57%

4. Our Conflict Minerals Report will reflect significant changes in content, structure or approach from our ’13 CMR
– Yes – 21%
– No – 76%
– Not applicable – 4%

5. We didn’t conduct an Independent Private Sector Audit (IPSA) last year and
– Don’t expect to conduct one for our 2014 report – 100%
– Expect to conduct one for our 2014 report – 0%

6. We expect to conduct an IPSA for your 2014 report and we plan on using a
– CPA firm & the Attestation standard – 0%
– Non-CPA firm & the Performance Audit Standard – 50%
– CPA firm & the Performance Audit Standard – 50%

7. For manufacturers: we are requiring part-level information from our suppliers
– Yes – 38%
– No – 59%
– Not applicable – 4%

8. For suppliers: Our customers are no longer willing to accept company-wide disclosures
– Yes – 16%
– No – 68%
– Not applicable – 16%

Take a moment to participate in our “Quick Survey on Hedging Policies” and our “Quick Survey on Currency Fluctuations for Incentive Compensation.”

Conflict Minerals: The Latest

Here’s some of the latest on conflict minerals:

– Per this article, SEC Chair White estimates its costs associated with the conflict minerals rule is $2.75 million so far (17k hours or $2.1 million to write the rule; 4k hours or $520k to defend it & $128k to update EDGAR)
– Some auditors are pulling out of the IPSA market per this blog entitled “Psst – Hey Buddy, Wanna Buy a Cheap Conflict Minerals IPSA?”
– Per this blog, if your CY2014 smelter/refiner list is limited to ONLY processing facilities that are CFSI audited or verified, your disclosure may be incomplete (unless CFSI audited/verified facilities actually do make up 100% of the names provided by your suppliers).

Transcript: “Merger Filings with the SEC: Nuts & Bolts”

We have posted the DealLawyers.com transcript for our recent webcast: “Merger Filings with the SEC: Nuts & Bolts.”

– Broc Romanek