<SEC-DOCUMENT>0001193125-12-119439.txt : 20120419
<SEC-HEADER>0001193125-12-119439.hdr.sgml : 20120419
<ACCEPTANCE-DATETIME>20120316145207
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ACCESSION NUMBER:		0001193125-12-119439
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20120316

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MONRO MUFFLER BRAKE INC
		CENTRAL INDEX KEY:			0000876427
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-AUTOMOTIVE REPAIR, SERVICES & PARKING [7500]
		IRS NUMBER:				160838627
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		200 HOLLEDER PKWY
		CITY:			ROCHESTER
		STATE:			NY
		ZIP:			14615-3808
		BUSINESS PHONE:		7166476400
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<TYPE>CORRESP
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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">March&nbsp;16, 2012 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">VIA EDGAR AND E-MAIL </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Ms.&nbsp;Linda Cvrkel </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Branch Chief </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">United States Securities and
Exchange Commission </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">100 F Street, N.E. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Judiciary Plaza </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Washington, DC 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">RE:</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Monro Muffler Brake, Inc. (the &#147;Company&#148;) </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Form 10-K for the fiscal year ended March&nbsp;26, 2011 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">File No. 000-19357
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dear Ms.&nbsp;Cvrkel: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">On behalf
of Monro Muffler Brake, Inc., a New York Corporation, please find below the Company&#146;s response to your comment letter dated March&nbsp;1, 2012. In this letter, references to &#147;we,&#148; &#147;ours,&#148; &#147;us&#148; and the
&#147;Company&#148; refer to Monro Muffler Brake, Inc. The numbered paragraphs below set forth the staff&#146;s comments together with our response. Unless otherwise indicated, capitalized terms used herein have the meanings assigned to them in the
Form 10-K. In responding to these comments, the Company acknowledges that: </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">1.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">the Company is responsible for the adequacy and accuracy of the disclosure in our filings; </FONT></TD></TR></TABLE>
<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">2.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and
</FONT></TD></TR></TABLE> <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">3.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">the Company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United
States. </FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">For your convenience, we have repeated each of the staff&#146;s comments in italics immediately above our responses to
each corresponding comment. Specifically, with regard to such comments: </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I><U>Consolidated Statements of Income, page 33 </U></I></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B></B><B><I>1. Reference is made to your presentation of revenues from your business operations under the caption &#147;Sales&#148; on
the face of your income statements. We note from your disclosures in the business section on page 1 of your Form 10-k that you provide a broad range of automotive repair and maintenance services, and specialize in the repair and replacement of
parts. We also note that in fiscal 2007 you began a program to increase tire and tire related sales in your service stores, and based on the amounts presented on your balance sheets, it appears inventory represents 22% and 19% of total assets as of
March&nbsp;26, 2011 and March&nbsp;27, 2010. In this regard, please advise why you believe your presentation of revenues in the aggregate on the face of the income statement is appropriate as it appears that you recognize both product and service
revenues from your business operations. As part of your response, please address how your presentation complies with the guidance outlined in Rule 5-03(b)(1) and provide us with a break out of product and services revenues which comprise total sales
for each of the periods presented. Alternatively, you may revise your income statement presentation to separately state revenues from products and services, including the related costs of revenues. We may have further comment upon receipt of your
response.</I></B> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> Rule 5-03(b) of Regulation S-X requires that the statement of income present sales by
tangible products; operating revenues of public utilities and other; income from rentals; revenues from services; and other revenue if income derived from more than one of the categories is greater than 10% of total revenue. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company&#146;s principal business is the repair of passenger cars and light trucks. The Company uses products (parts and tires) and
labor in connection with the provision of repair services. Unlike companies such as NAPA, AutoZone or Advance Auto Parts, the Company does not sell parts and tires over the counter. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Additionally, the Company&#146;s pricing to its customers is primarily based on competitive factors, with the split between the product
selling prices and labor pricing being responsive to those competitive influences. In situations where the selling price is broken out between the product and installation service, the selling price components are not proportionate to the total
gross profit realized on the sale. The breakdown on the customer invoice is more a function of the perceived value of the related service and products involved with a repair. With respect to tires, most of the Company's tire sales and installation
is advertised as an "all in" price for the tires, installation, wheel weights, wheel balancing, etc. and is not broken out separately on the customer invoice. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Accordingly, for these reasons, the Company does not separately break out revenues between service and products for internal or external reporting purposes. The Company believes that such a break out
would not be meaningful to investors. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">In response to the staff&#146;s comments from its March&nbsp;1 letter, the Company has
considered Rule 5-03(b) and believes that the presentation of sales on the face of the income statement is appropriate. The Company concluded this as we believe that the </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">2 </FONT></P>


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presentation of sales does not provide any less meaningful information to investors than if a break out is provided. Further, disclosures of sales are consistently applied and clearly disclosed.
</FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I><U>Note 1 &#150; Significant Accounting Policies </U></I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><I><U>Revenue Recognition, page 36 </U></I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I>1. We note that as of
March&nbsp;26, 2011, Monro had 781 Company-operated stores, three franchised locations and 14 dealer locations located in 20 states. Please expand your revenue recognition footnote to describe your policy for revenue recognized with respect to the
franchised and dealer locations.</I></B> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> The Company recognizes two distinct revenue streams from its
franchise relationship. For the fiscal year ended March&nbsp;26, 2011, the Company recognized $415,000, or .1% of sales, in franchise royalty income and $1,862,000, or .3% of sales, in sales to franchisees of stocking inventory items. Further, the
Company does not receive compensation or recognize any revenue from these dealer relationships. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">In response to the
staff&#146;s comments from its March&nbsp;1 letter, the Company has concluded that these amounts of revenue are not material to the financial statements and do not require further disclosure in our policy for the recognition of revenue in NOTE 1
&#150; SIGNIFICANT ACCOUNTING POLICIES. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Please feel free to call the undersigned at 585-784-3335 should you have any questions or require
additional information. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Sincerely, </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>/s/ Catherine
D&#146;Amico&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Catherine D&#146;Amico </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Executive Vice President &#150; Finance, </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Treasurer and Chief Financial Officer </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">CC:</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Robert G. Gross &#150; Chairman and Chief Executive Officer </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">John W. Van Heel &#150; President and Secretary </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Maureen E. Mulholland &#150;
General Counsel </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Monro Muffler Brake, Inc. Audit Committee Members </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Jeffrey Bowen &#150; Harter Secrest&nbsp;&amp; Emery LLP </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Keith Belote &#150; PricewaterhouseCoopers LLP </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">David D. Abruzzese- Controller
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Eileen M. Tometsko </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Christian M. Snyder </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Michelle A. Cohen </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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