<SEC-DOCUMENT>0001193125-13-075169.txt : 20130405
<SEC-HEADER>0001193125-13-075169.hdr.sgml : 20130405
<ACCEPTANCE-DATETIME>20130226061734
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-13-075169
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20130226

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INNOSPEC INC.
		CENTRAL INDEX KEY:			0001054905
		STANDARD INDUSTRIAL CLASSIFICATION:	CHEMICALS & ALLIED PRODUCTS [2800]
		IRS NUMBER:				981081725
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		8375 SOUTH WILLOW STREET
		CITY:			LITTLETON
		STATE:			CO
		ZIP:			80124
		BUSINESS PHONE:		303-792-5554

	MAIL ADDRESS:	
		STREET 1:		8375 SOUTH WILLOW STREET
		CITY:			LITTLETON
		STATE:			CO
		ZIP:			80124

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	OCTEL CORP
		DATE OF NAME CHANGE:	19980209
</SEC-HEADER>
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<TYPE>CORRESP
<SEQUENCE>1
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<TITLE>Correspondence</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">February&nbsp;26, 2013 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>VIA COURIER AND EDGAR </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mr.&nbsp;Rufus Decker </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Accounting Branch Chief </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Division of Corporation
Finance </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Securities and Exchange Commission </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">100 F Street, N.E. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Washington, D.C. 20549 </FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Re:</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Innospec Inc. </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Form
10-K for the Year Ended December&nbsp;31, 2011 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Filed February&nbsp;17, 2012 </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Form 10-Q for the Period Ended September&nbsp;30, 2012 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Filed November&nbsp;1, 2012 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Definitive Proxy Statement on Schedule 14A
</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Filed March&nbsp;23, 2012 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>File No.&nbsp;1-13879 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dear Mr.&nbsp;Decker: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2">This letter responds to your comment letter to Innospec Inc. (the &#147;Corporation,&#148; &#147;Company,&#148; &#147;we,&#148;
&#147;us&#148; or &#147;our&#148;) dated February&nbsp;1, 2013 in respect of the above-referenced filings. Your letter follows your original comment letter dated December&nbsp;21, 2012 and our initial response to that letter dated January&nbsp;17,
2013. We appreciate the additional time through March&nbsp;1 that you granted us to respond to your comments. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2">For ease of
reference, we have reproduced below your comments in bold text before each response. We have provided as part of our responses below proposed additional disclosures or other revisions to be made in our future filings, including interim filings,
where appropriate. Italicized text in our responses below represents proposed additional disclosures. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2">As you are likely
aware, the Company filed its Annual Report on Form 10-K for the year ended December&nbsp;31, 2012, on February&nbsp;13, 2013. We incorporated into that Form 10-K filing those comments that we undertook to include in our previous response letter. To
the extent that we believe comments from your follow up letter have been addressed in the filed 2012 Form 10-K, we have noted that in our responses. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Form 10-K for the Year Ended December&nbsp;31, 2011 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Management&#146;s
Discussion and Analysis of Financial Condition and Results&#133;, page 26 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Results of Operations, page 30 </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Results of Operations &#150; Fiscal 2011 Compared to Fiscal 2010, page 31 </U></B></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>1.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>We note your response to comment four from our letter dated December&nbsp;21, 2012. Please revise your discussion under results of operations for
all periods to provide the following: </B></FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Your proposed disclosure indicates that the decrease of 3.2 percentage points in gross margin reflects higher proportion of lower margin products
and the competitive pressure on margins resulting from increased raw material costs despite the benefit of the new contracts and contract amendments. However, it is still not clear how much of this decrease in margin is related to increasing raw
materials costs or lower margin product. Please further help us understand how much of your sales were lower margin product as compared to the prior period and discuss whether this change in product mix is a trend that will continue. If not, please
discuss what management&#146;s plans are to address this increase in sales of lower margin product. Please provide a more robust discussion of why product mix had a negative impact on gross margin; and</B> </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>In your proposed disclosure, you indicate that the increase in operating expenses in the Active Chemical segment was primarily related to a $0.5
million adverse impact of foreign currency exchange rates on your European cost based denominated in European Union Euro and British pound sterling. However, you have not discussed the reasons for the remaining $0.9 million of increase in operating
expenses. Please revise your disclosure to discuss a majority of the increase in operating expenses, where applicable.</B> </FONT></P></TD></TR></TABLE>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">1 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Please show us supplementally what your revised disclosures for 2011 as compared to 2010
will look like.</B> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2">Company Response: When drafting the MD&amp;A we strive to provide the reader with a view of our business
through the eyes of management. Consistent with prior disclosures in our Annual Reports on Form 10-K, we primarily evaluate the performance of our segments based on operating income as opposed to the constituent individual elements of operating
income such as gross margin and operating expenses. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="1%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2">We acknowledge your comment. As a practical matter, we do not budget, internally report or manage our business by reference to what elements of our
Fuel Specialties&#146; period on period gross margin variances relate to raw material cost increases or decreases, or what proportion of sales relates to low, medium or high margin products; although we do have an appreciation of these matters and
their impact on our financial results. Our focus is on achieving an acceptable absolute gross profit, and relative gross margin, in the medium-term by reference to geographical regions, product groups and/or customers. We believe these financial
metrics in respect of geographical regions, product groups and customers to be commercially sensitive and, accordingly, we do not externally disclose them. The recent short-term fluctuations in our sales mix of higher and lower margin products is
not, in our opinion, indicative of any medium or long-term market trend that is relevant to the Company, although to the extent it may become a relevant trend in the future we would disclose it. </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="1%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2">We acknowledge your comment. As a practical matter, given the size of our business, we do not generally report internally to our Chief Operating
Decision Maker, or externally, increases in annual operating expenses of the levels you suggest other than those relating to the impact of foreign currency exchange rates. However, given your comment, with regard to the operating expenses of our
Performance Chemicals segment, which was previously named Active Chemicals, we have revised our disclosure beginning with our Annual Report on Form 10-K for the year ended December&nbsp;31, 2012. Our revised disclosures, for 2011 as compared to
2010, on page 39 of that Form 10-K filing were as follows: </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Operating expenses</I>: the year on year
increase of 8%, or $1.4 million, was less than the 16% growth in sales as we continued to leverage the infrastructure of this segment. <I>The increase in operating expenses primarily related to $0.7 million higher personnel-related compensation
costs, a $0.5 million adverse impact of foreign currency exchange rates on our European cost base denominated in European Union euro and British pound sterling, and $0.2 million higher REACH costs</I>. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px" ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Liquidity and Financial Condition, page 39 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="justify"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Operating Activities, page 42 </U></B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>2.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>We note your response to comment six from our letter dated December&nbsp;21, 2012. Your proposed disclosure appears to discuss your changes in
working capital components as it relates to your adjusted working capital. Please separately discuss the changes in your cash flows from operating activities from period to period. Your proposed disclosures also indicate that days sales in inventory
in your Active Chemical were higher as at December&nbsp;31, 2011 compared to December&nbsp;31, 2010. However, it is not clear how much higher your financial measure increased when compared to the prior period. Please quantify your days sales
outstanding and days sales in inventory whenever you discuss these financial measures so an investor can understand how these financial measures are changing from period to period. Please show us supplementally what your revised disclosures will
look like. </B></FONT></P></TD></TR></TABLE>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2">Company Response: We have revised our disclosures consistent with your comments beginning
with our recently filed Annual Report on Form 10-K for the year ended December&nbsp;31, 2012. Our revised disclosures are on pages 42 to 43 of that Form 10-K filing. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Form 10-Q for the Period Ended September&nbsp;30, 2012 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Financial Statements
</U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Consolidated Statement of Cash Flows, page 8 </U></B></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>3.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>We note your response to comment eight from our letter dated December&nbsp;21, 2012. It appears that the $5 million payment you made during the
nine months ended September&nbsp;30, 2012 and the $10 million in additional payments you expect to make in future periods pursuant to the extended payment arrangement with NewMarket Corporation are payments that stem from your settlement of
litigation with them. As a result, we are still having difficulty in understanding why they are being presented as financing activities, rather than as operating activities pursuant to ASC 230-10-45-17(f). Please advise.
</B></FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2">Company Response: We have revised our presentation consistent with your comments beginning with our
recently filed Annual Report on Form 10-K for the year ended December&nbsp;31, 2012. Our revised presentation is on page 57 of that Form 10-K filing. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Definitive Proxy Statement on Schedule 14A filed on March&nbsp;23, 2012 </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Compensation Discussion and Analysis, page 19 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Co-Investment Plan, page 25 </U></B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>4.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>We note your response to comment 12 in our letter dated December&nbsp;21, 2012. Please note that equity-based compensation instruments that have
option-like features and that are within the scope of FAS 123R must be disclosed in the Option Awards column of the summary compensation table in a manner similar to the treatment of stock and other equity-based awards. Please also note that the FAS
123R valuation must be used whether the award itself is in the form of stock, options or similar instruments or the award is settled in cash but the amount of payment is tied to performance of the company&#146;s stock. In this regard, we note your
&#147;Cash Based LTIP&#148; disclosure on page 27 which states among other things, that once vested, the value of the SEU is equal to the closing stock price on the date it is cashed and that the grants of such SEU awards are made on a set date
&#147;usually after the public announcement of the annual financial results.&#148; As a result, in future filings: </B></FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>please disclose the SEU awards in the Option Awards column of the summary compensation table, including explanatory footnote disclosure
identifying, among other things, the portion of the grant representing the market price SEUs and the portion representing the zero priced SEUs; and</B> </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>revise your Grants of Plan-Based Awards table to properly disclose the SEU awards as equity awards in accordance with Item&nbsp;402(d)(2)(iv) of
Regulation S-K. To the extent that the market price SEUs are subject to time-based vesting only, and not considered awards under an equity incentive plan as the term is defined in Item&nbsp;402(a)(6)(iii) of Regulation S-K, please disclose these
awards in accordance with Items 402(d)(2)(vi) or (viii), as applicable. Please refer also to Instruction 4 of Item&nbsp;402(d) to the extent that the two types of SEU grants may be considered a tandem grant of two instruments.</B>
</FONT></P></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>For guidance please refer to Section II.C.1.c of SEC Release No.&nbsp;33-8732A.</B> </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2">Company Response: We will revise our disclosure consistent with your comments beginning with our Proxy Statement for the 2013 Annual
Meeting. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Director Compensation for Fiscal 2011, page 44 </U></B></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>5.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>We note your response to comment 13 in our letter dated December&nbsp;21, 2012. It is not readily apparent what connection there is between the
vesting of the awards with the aggregate number of the awards outstanding at fiscal year-end. Please explain. We may have additional comments following the review of your response. </B></FONT></P></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="justify"><FONT STYLE="font-family:Times New Roman" SIZE="2">Company Response: The stock awards issued pursuant to the NEDSP vest immediately as they are shares, not options. The proposed new table
we reflected in our letter dated January&nbsp;17, 2013 shows against each non-executive director&#146;s (&#147;NED&#148;) name in the first column the number of shares issued to them in 2011 under the NEDSP and in the second column it shows the
total number of shares held by each NED under the NEDSP. In order to clarify the link between the stock awarded in the year and the aggregate held at year end, we propose to revise the title of the first column from &#147;Equivalent in Number of
Shares&#148; to &#147;Number of Shares issued in [relevant year] under the NEDSP,&#148; and to revise the title of the second column to read &#147;Cumulative Shares held which were awarded under NEDSP,&#148; beginning with the Proxy Statement for
the 2013 Annual Meeting. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">***** </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">If you have any additional questions or comments, please feel free to contact me directly at 011-44-151-348-5830. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Ian P. Cleminson</FONT></P></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Ian P. Cleminson</FONT></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Executive Vice President and Chief Financial Officer</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Cc: Securities and Exchange Commission - Ernest Greene, Staff Accountant </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">4 </FONT></P>

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