in accounts 2190 Other Current Liabilities and 2290 Other Noncurrent Liabilities shall be shown in column 13. Schedule B-44-Summary of Resources

Exchanged with Affiliated Group Members and Other Associated Companies

(a) This schedule 1 shall be filed by all supplemental air carriers.

(b) Single but separate sets of this schedule shall be filed for the overall corporate or other legal entity comprising the air carrier.

(c) One set each shall be filed, and checked in the appropriate box, for resources acquired by the air carrier, or its regulated activity, and one set each shall be filed and checked in the appropriate box for resources disposed of by the air carrier or its regulated activity. For these purposes, the amount at which any resources of other persons are hypothecated for the benefit of the air carrier will be considered a resource acquired and the amount at which any resources of the air carrier are hypothecated for the benefit of others will be considered a disposition of resources. Land, buildings, and equipment acquired from or provided other members of an affiliated group under a lease arrangement will be reported in the same manner but separately from resources hypothecated.

(d) The data reported on this schedule shall be grouped within each indicated classification for resources exchanged with separate but associated legal entities and for resources exchanged between the air carrier's regulated activities and separately organized nontransport divisions.

(e) Column 1 shall reflect under each indicated classification the name of each company or other organization with which resources of any type were exchanged during the calendar year. For this purpose income taxes determined on a consolidated basis within an affiliated group shall be classified as an operational service performed by the controlling person which constitutes resource acquisition (or resource purchased) when the tax allocation results in a charge and a resource disposition (or a resource sold) when the tax allocation results in a credit for any tax year.

(f) Column 2 shall reflect for all resources exchanged during the calendar

1 Filed as part of the original document.

year with each company or other organization reflected in column 1 the aggregate of the invoice price and/or the cost to the provider, less any associated valuation reserve accumulations, as applicable under section 2-18 of this Part 241. (g) Column 3 shall reflect the estimated market value counterparts of the resource amounts reflected in column 2.

(h) Column 4 shall reflect the aggregate of those transactions with each company or other organization reflected in column 1 which have been recorded at invoice price or cost to the provider, as applicable. For this purpose, transactions concerning resource acquisitions shall not be offset against transactions concerning resource dispositions.

(i) Column 5 shall reflect the aggregate of those transactions with each company or other organization reflected in column 1 which have been recorded at estimated market value. For this purpose, transactions concerning resource acquisitions shall not be offset against transactions concerning resource dispositions.

(j) Column 6 shall reflect the debit adjustments to the aggregates shown in columns 4 and 5 combined, for each company or other organization reflected in column 1, which is necessary to reconcile with the amounts at which settlement has been established. For this purpose, transactions for which credit adjustments are entailed shall not be aggregated with transactions for which debit adjustments are entailed.

(k) Column 7 shall reflect the credit adjustments to the aggregates shown in columns 4 and 5 combined, for each company or other organization reflected in column 1, which is necessary to reconcile with the amounts at which settlement has been established. For this purpose, transactions for which debit adjustments are entailed shall not be aggregated with transactions for which credit adjustments are entailed.

(1) Column 8 shall reflect the net of any current year adjustments with each company listed in column 1 which pertain to settlements of prior years and which are recorded in asset accounts 1250, 1510, or 1520 or liability accounts 2050, 2240, and/or 2245.

(m) Column 9 shall reflect, for each company or other organization, reflected in column 1, the aggregate of the settlements established which should equal the sum of amounts shown in columns 4

and 5 adjusted by the net of amounts shown in columns 6, 7, and 8. The amounts in this column shall conform with the balance of accruals for the year, before liquidation, to accounts 2050, 2240, and/or 2245 with respect to resource acquisitions and accounts 1250, 1510, or 1520 with respect to resource dispositions, for each company or other organization, reflected in column 1, and as reflected at year-end in Schedule B-4-Accounts With Subsidiaries, Other Associated Companies and Nontransport Divisions.

(n) Column 10 shall reflect the effective interest rate(s), if any, charged on any unliquidated balance of amounts at which resource acquisitions are to be settled and the effective interest rate(s), if any, received on any unliquidated balance of amounts at which resource dispositions are to be settled. Explanatory footnotes shall be used for reporting multiple interest rates or other conditions pertinent to an understanding of effective finance charges.

Schedule B-46-Long-Term and ShortTerm Non-Trade Debt

(a) This schedule shall be filed by each supplemental air carrier and shall reflect information pertaining to each issue of long-term debt and short-term debt (other than trade liabilities) in excess of 5 percent of total outstanding debt.

(b) A single set of this schedule shall be filed for the overall corporate or other legal entity comprising the air carrier.

(c) Column 1 shall reflect a description of each particular issue of debt, such as "Sinking Fund Debentures", "Bank Notes", "Credit Agreement", etc. This column shall also reflect for each issue, a brief description of the terms of payment and, where applicable, conversion privileges, including conversion periods, rates of conversion, and the securities into which convertible.

(d) Columns 2, 3, and 4 shall reflect the date of issue, date of maturity, and the interest rate per annum, respectively.

(e) Column 5 shall reflect the amount of bonds or other evidences of debt originally issued, as distinguished from the amount authorized.

(f) Columns 6 and 7 shall reflect the balance outstanding at the end of the reporting period in accounts 2210 LongTerm Debt and 2010 Current Notes Payable on Schedule B-1, respectively.

(g) Columns 8 and 9 shall reflect the name and address of holders of more than 5 percent of the issue or $500,000, whichever is smaller, showing for each such holder the amount held as at the end of the reported period.

Schedule B-47-Lease Obligations—
Flight Equipment

(a) This schedule shall be filed by each supplemental air carrier and shall reflect information pertaining to each flightequipment lease obligation with annual rental of $500,000 or 1 percent of total debt and equity capital, whichever is less, but excluding leases with annual rental of less than $100,000.

(b) A single set of this schedule shall be filed for the overall corporate or other legal entity comprising the air carrier.

(c) Column 1 shall reflect a description of each item of flight equipment under lease by the reporting carrier of the magnitude specified in paragraph (a).

(d) Column 2 shall reflect the beginning date of the lease.

(e) Column 3 shall reflect the life of the lease and any renewal periods. Where a lease is not renewable, the word "none" shall be reported.

(f) Column 4 shall reflect the name and address of the lessor.

(g) Column 5 shall reflect the aggregate amount of the contractural obligation payable over the full life of the lease, including interest and other charges.

(h) Column 6 shall reflect the total amount due and payable under the lease in the ensuing twelve-month period including interest and other charges. If the lease is conditional, the minimum amount due in the twelve months shall be stated with explanation. Where the amount varies from year to year, a schedule of payments shall be attached.

(i) Column 7 shall indicate whether the lease contains purchase option provisions by insertion of the word "yes" or "no".

[ER 369, 27 F.R. 12822, Dec. 29, 1962, as amended by ER-417, 29 F.R. 13532, Oct. 1, 1964; ER-423, 29 F.R. 14875, Nov. 3, 1964; ER-425, 30 F.R. 746, Jan. 23, 1965; ER-483, 32 F.R. 2812, Feb. 11, 1967; ER-530, 33 F.R. 4797. Mar. 21, 1968; ER-541, 33 F.R. 9651, July 3, 1968; ER-546, 33 F.R. 18697, Dec. 18, 1968; ER-562, 34 F.R. 3741, Mar. 4, 1969; ER606, 35 F.R. 4614, Mar. 17, 1970; ER-635, 35 F.R. 13194, Aug. 19, 1970; ER-707, 36 F.R. 20937, Nov. 2, 1971]

Section 34-Profit and Loss Elements

Schedules P-1.1 and P-1.2-Income
Statement

(a) Schedule P-1.1 shall be filed by each Group I supplemental air carrier and schedule P-1.2 shall be filed by each Group II supplemental air carrier.

(b) Data shall be reported only in the column headed "Quarter." Cumulative "12 Months to Date" information is not required from supplemental air carriers. The caption "operation" is not applicable to supplemental air carriers.

(c) Data reported on this schedule shall conform with the instructions pertaining to profit and loss classifications within this Uniform System of Accounts and Reports.

(d) "Unappropriated Retained Earnings-Beginning of Period" shall be the sum of Account 2940 "Unappropriated Retained Earnings" and Account 2941 "Net Income" reported on the balance sheet as at the close of the previous quarter.

(e) "Unappropriated Retained Earnings-End of Period" shall be the sum of Account 2940 "Unappropriated Retained Earnings" and Account 2941 "Net Income" reported on the balance sheet as at the close of the current quarter.

Schedule P-2-Notes to Income
Statement

(a) This schedule shall be filed by each supplemental air carrier.

(b) All substantive matters which may influence materially interpretations or conclusions in regard to the earnings position of the air carrier which are not clearly identified in the body of the income statement shall be completely and clearly stated in this schedule and crossreferenced to the affected profit and loss account.

(c) Balances in subaccounts 84.1 and 84.2 of profit and loss account 8100 as reported on the P-1 schedules, together with dividends declared in the current period on the stocks of subsidiary companies, shall be noted on this schedule.

Schedule P-3.1-Transport Revenues (a) This schedule shall be filed by each supplemental air carrier.

(b) The schedule shall reflect the distribution of revenues by geographic area. (See section 31(h).)

(c) Revenues reported shall reflect the aggregate revenue from each indicated class of traffic. In the case of military contracts, type of service shall be reported under the appropriate objective account. Abbreviations may be used in reflecting type of service, such as CAMS (Commercial Air Movements), CAFS (Commercial Air Freight Movements), MAC-FC (Military Airlift Command Fixed Contracts), MAC-CC (Military Airlift Command Call Contracts). The type of aircraft shall also be reported for each type of service, e.g., CAMS DC-4. Type of service would also include maintenance, equipment modification, personnel training, etc.

(d) The sum of the subdivisions of each objective account reported in this schedule shall agree with the corresponding amounts reported in schedule P-1Income Statement.

Schedule P-4-Incidental RevenuesNet; Explanation of Special Items; Explanation of Deferred Federal Income Tax Adjustments, Dividends Declared and Retained Earnings Adjustments

(a) This schedule shall be filed by each Group II supplemental carrier.

(b) Incidental revenues-net shall be reported in this schedule in conformance with the instructions pertaining to each item in section 9-4600 Incidental Revenues-Net.

(c) Receipts from and payments to other air carriers under agreements providing for mutual financial assistance in the case of work stoppage shall be identified in separate amounts for the individual air carriers involved, through appropriate footnote on Schedule P-2 and shall be cross-referenced to account 18, Other Incidental Revenues reflected in this schedule. The note covering payments under such agreements shall identify the items and the amounts of the gross revenues and gross expenses upon which the payments to each air carrier are predicated.

(d) The aggregate of all net incidental revenues reported in this schedule shall agree with the corresponding net amount reported for classification 4600 Incidental Revenues-Net, in Schedule P-1.

(e) Each special income item shall be fully identified and reported in gross amount in this schedule.

(f) Special credits to income during the current accounting period shall be identified in positive amounts and any special debits to income shall be identified by asterisks (*).

(g) Special income and special income tax credit and debit items shall be reported separately.

(h) The net of special income items and the net of special income tax items reported in this schedule shall agree with corresponding amounts reported in schedule P-1.

(i) Deferred Federal income tax adjustments shall be fully explained in the bottom section of this schedule. The explanations for each credit and debit, respectively, shall identify the property to which related, provide a complete description of the adjustment and the reasons for the adjustment.

(j) Dividends declared and retained earnings adjustments shall be fully explained in the bottom section of this schedule. If a dividend is not payable in cash, the values of amounts declared shall be completely described.

Schedules P-5.1 and P-5.2-Aircraft
Operating Expenses

(a) Schedule P-5.1 shall be filed by each Group I supplemental air carrier and schedule P-5.2 shall be filed by each Group II supplemental air carrier.

(b) The schedule shall be filed for quarterly data only. The caption "Operation" at the head of each column is not applicable to supplemental air carriers.

(c) Data applicable to each aircraft type operated by the air carrier shall be reported in separate columns of this schedule and each aircraft type for which report is being made shall be identified at the head of each column in the space provided opposite "Aircraft Type." However, each air carrier may group, on a uniform basis, data applicable to small single-engine aircraft types of approximately equivalent size, flight principles and characteristics. For this purpose two groups, with subdivision as between fixed wing and rotary wing aircraft types, and between reciprocal engine, turbojet and turboprop aircraft types are established as follows: (1) single-engine aircraft with maximum continuous horsepower of 300 or under; (2) singleengine aircraft with maximum continu

ous horsepower of 301 to 450, inclusive. All other aircraft types, including larger single-engine and small twin-engine types, are to be separately reported. Aircraft types not generally used in revenue services shall be separately reported. If more than one type of aircraft is involved, a separation of data relating to each type of aircraft shall not be required.

(d) "Aircraft type" refers to models, such as DC-6, DC-6A, CV-240, L-649, etc., as designated by the manufacturer. Data applicable to aircraft designed primarily for cargo services and only incidentally used for passenger services shall be reported in separate columns, and the word "cargo" shall be inserted after the aircraft type at the head of the column. The prescribed reporting by aircraft types may be reviewed from time to time upon request by individual air carriers, or upon the initiative of the Board, and groupings of aircraft types for reporting purposes may be prescribed or amended in specific instances.

(e) Italicized codes and item titles do not constitute accounts or account numbers prescribed for air carrier accounting but shall be used for reporting purposes only.

(f) Item 79.6 Applied Maintenance Burden shall reflect a memorandum allocation by each air carrier of the total expenses included in subfunction 5300 Maintenance Burden between maintenance of flight equipment, by aircraft types, and maintenance of ground property and equipment (exclusive of maintenance equipment and maintenance buildings) in accordance with item (d) of the instructions for schedule P-6. The amount reported for this item, in aggregate for all aircraft types, shall agree with the amount reported for the same item reflected on schedule P-6.

(g) Item 73.1 Current Provisions (for obsolescence and deterioration of flight equipment expendable parts) shall reflect the gross provisions for losses in value of expendable parts during the current accounting period.

(h) Item 73.2 Inventory Decline Credits shall reflect credits applicable to the current period for any adjustments for excess inventory levels determined pursuant to section 6-1311.

(i) The total of function 5100 Flying Operations reported on this schedule

shall agree with corresponding amounts reported on schedule P-1, and the total of item 5278 Total Direct MaintenanceFlight Equipment shall agree with the corresponding amount reported in schedule P-6.

Schedule P-6-Maintenance, Passenger Service, and General Services and Administration Expense Functions

(a) This schedule shall be filed by each supplemental air carrier.

(b) The schedule shall be filed for quarterly data only. The caption "Operation" at the head of each column is not applicable to supplemental air carriers.

(c) Group I supplemental air carriers shall report the indicated data for all items except function 5500 Passenger Service.

(d) Group II supplemental air carriers shall report the indicated data for all items except function 6900 General Services and Administration.

79.8

(e) Items 79.6 Applied Maintenance and Burden-Flight Equipment Applied Maintenance Burden-General Ground Property, respectively, shall reflect a memorandum allocation by each air carrier of the total expenses included in subfunction 5300 Maintenance Burden between maintenance of flight equipment (by aircraft types) and maintenance of ground property and equipment (exclusive of maintenance equipment and maintenance buildings for which costs are included in subfunction 5300). Where air frame and aircraft engine overhauls are accounted for on the accrual basis to produce a matching of costs with the operation of aircraft, the allocation of maintenance burden shall give effect to charges and credits to profit and loss account 5272 Flight Equipment Airworthiness Provisions in order to effect an equitable allocation of such maintenance burden costs. Each supplemental air carrier shall file with the Civil Aeronautics Board a statement as a supplement to this schedule in which the procedures to be followed in allocating maintenance burden are fully explained. Revisions in such allocation procedures shall not be effected for 30 days following written notice to the Civil Aeronautics Board. (See section 32(d).) At the option of the supplemental air carrier, standard burden rates may be employed for quarterly allocations of maintenance burden provided

the rates are reviewed at least once each accounting year and the amounts allocated are adjusted to reflect the actual costs incurred for the full accounting year. Any differences between actual burden costs incurred during each quarter and amounts applied at standard rates shall be entered as item 79.9 Over or Under Applied Burden.

(f) The sum of the totals of subfunctions 5200 Direct Maintenance and 5300 Maintenance Burden shall agree with the corresponding amount reported in function 5400 on schedule P-1. The total of function 6900 General Services and Administration reported in this schedule by Group I supplemental air carriers shall agree with the corresponding amount reported on schedule P-1.

(c) Supplemental air carriers shall report the indicated data for all items except subfunction 6100 Aircraft Servicing.

(d) The total of each functional expense classification reported in this schedule shall agree with the corresponding amount reported on schedule P-1. [ER-369, 27 F.R. 12824, Dec. 28, 1962; as amended by ER-417, 29 F.R. 13533, Oct. 1, 1964; ER-492, 32 F.R. 7592, May 24, 1967; ER-546, 33 F.R. 18698, Dec. 18, 1968; ER-562, 34 F.R. 3741, Mar. 4, 1969; ER-635, 35 F.R. 13195, Aug. 19, 1970]

Section 35-Traffic and Capacity Elements

General Instructions

(a) The prescribed reporting for traffic and capacity elements is designed to reflect the physical factors related to air transport operations as actually conducted.

(b) All statistics to be reported in the following schedules shall be compiled in accordance with the definitions set forth in section 03 Definitions for Purposes of This System of Accounts and Reports. In principle, elements which are common to different statistics shall be meas