condition of the supplemental air carrier which are not clearly identified in the body of the balance sheet shall be completely and clearly stated in this schedule and cross-referenced to the affected balance sheet account.

(c) The amounts and estimated delivery dates of any purchase commitments of material size and not of a recurrent routine character shall be explained on this schedule. In the case of commitments involving flight equipment, the amount for each equipment type may be given in total, including any engines, airframes and spares; but the number of airframes and the number of engines by type shall be given, as well as the estimated delivery date for each complete aircraft. Reports on commitments other than for flight equipment are required only in the December 31 report of each calendar year.

(d) The balances in subaccounts of balance sheet account 2390 Other Deferred Credits titled "Investment Tax Credits Available" and "Unrealized Investment Tax Credits" shall be set forth in this schedule as at the end of each calendar quarter.

(e) Each class and series of the air carrier's capital stock, as at the end of each calendar quarter, shall be listed and the indicated information entered within the "Paid-In Capital" section of this schedule.

(f) All transactions and amounts affecting paid-in capital during the current quarter shall be fully explained for each class and series of capital stock to which related. Total paid-in capital and total treasury stock reported on this schedule as at the end of each calendar quarter shall agree with corresponding amounts reported on schedule B-1 Balance Sheet.

(g) In the "Analysis of Sole Proprietorship Capital or Partnership Capital" section of this schedule, individual proprietors shall report the required data in the column headed "Total Capital." Partnerships shall reflect the names of the partners at the head of the columns provided therefor.

(h) All transactions and amounts affecting the proprietor's or partners' investments during the current quarter shall be reflected. Any items other than profits, losses, additional investments or withdrawals shall be shown under "Other Credits" or "Other Debits" in detail with a full explanation as to their

nature. The "Total Capital" balance at the end of the current quarter shall agree with the corresponding amount reported on schedule B-1 Balance Sheet. Schedule B-7—Airframes and Aircraft Engines Acquired

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

(b) The indicated data shall be reported for each individual airframe, identified by type, model, and design of cabin as to use for passengers exclusively, cargo exclusively, or both passengers and cargo in combination. Data pertaining to aircraft engines shall be reported in aggregate for each type or model. Airframe units leased from others for a period of more than 90 days shall be reported in a separate subsection of this schedule. In addition, a notation shall be made by license number of airframe units of the air carrier returned after lease to others for a period of more than 90 days. Airframe units obtained through interchange lease arrangements shall not be so reported.

(c) All dates shall indicate the day, the month and the year; shall be provided on a unit basis for airframes only; and, shall be reported for each aircraft engine group by date of transaction.

(d) Report shall be made in the quarter in which each airframe and each group of aircraft engines is actually acquired irrespective of whether the cost thereof is reflected in the property and equipment accounts during the current quarter or a subsequent quarter. If the cost data are not reflected in the current quarter a footnote to that effect shall accompany the report of acquisition. The costs shall be reported during the quarter in which determined and the equipment to which related shall be listed again in this schedule, with complete information, and shall be identified as being the same equipment reported at the earlier date.

(e) Column 2, "Date Placed in Transport Service" shall relate to airframes only and shall be the date on which each airframe was or will be placed in regular service by the reporting entity. If this date is not known at the time of submission of the report an estimated date bearing the notation "estimate" shall be provided with the exact date shown by footnote on a subsequent schedule B–7 in which the airframe is reidentified by license number, type of aircraft and date acquired.

(f) Column 8, "Maximum Continuous Horsepower" shall reflect the maximum continuous horsepower rating of each type of aircraft engine acquired. (See section 03 for definition as applied in this system of accounts and reports).

(g) Column 9, "Aircraft Engines per Airframe" shall reflect the number of aircraft engines for which each acquired airframe is designed.

(h) Column 10, "Maximum Seat Capacity" shall reflect the number of passenger seats installed in each airframe acquired. When the configuration of airframes provides sleeping accommodations the passenger capacity shall be shown in terms of a sleeper version and a nonsleeper version. When airframes are designed for multiple adjustable seating configurations, the maximum number of seats for which designed shall be reported. When the seating configiration of airframes is modified subsequent to original acquisition, the revised Dassenger capacity of each airframe shall e reported in the quarter in which modiied and referenced to identify original capacity reported.

(i) Columns 12 and 15, "Reserve for Depreciation" and "Flight Equipment Airworthiness Reserves," respectively, shall include the amount of such reserves applicable to property and equipnent transferred from nontransport livisions.

chedule B-8-Property and Equipment Retired

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

(b) The indicated data shall be reorted for the sale or retirement of each irframe, each type of aircraft engine stating the number of units retired) nd, to the extent retired along with irframes and engines, in aggregates by ccounts, for operating property and quipment included in accounts 1603 hrough 1608 and nonoperating property nd equipment included in accounts 1703 hrough 1708. Disposition of properties 1 accounts 1603 through 1608 and 1703 hrough 1708 not related to airframe and ircraft engine retirements shall be reorted in a separate group for each acount. Ground property and equipment isposed of shall be reported in aggregate or all accounts, with subdivisions beveen operating and nonoperating propty and equipment. Airframe units ased from others for a period of more

than 90 days shall be reported, upon return to the lessor, in a separate subsection of this schedule. In addition, a notation shall be made by license number and name of lessee of airframe units leased to others for a period of more than 90 days. Airframe units leased under interchange arrangements shall not be so reported.

(c) Retirements shall be listed in the numerical sequence of the property and equipment account to which related.

(d) All dates shall include the day, the month and the year of each transaction.

(e) Column 7, "Cost" shall agree in totals for each account with the corresponding cost of property and equipment retired.

(f) Column 10, "Realization" shall reflect the proceeds from disposition, including any insurance proceeds or amounts covered by a self-insurance reserve established in accordance with section 2-13(c).

(g) Column 13, "Disposition" shall reflect the name of the person or organization to which airframes and aircraft engines are sold or a notation as to the nature of the retirement and the account to which any depreciated cost has been charged if not sold. Items included in accounts 1603 through 1608, and 1703 through 1708, sold as a part of airframe or aircraft engine sales transactions, shall also be identified by the name of the buyer. Other sales of items included in these accounts shall be reported in a separate group in aggregate for each property account affected, while all ground property dispositions shall be reported in a single aggregate and need not be identified by names of the buyers. Schedule B-11-Current and Long Term Receivables; Current and Long Term Payables

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

(b) This schedule shall reflect the balances of receivables and payables as at the close of each month.

(c) Columns 1 and 2 reflect the account number and description of the type of receivable or payable for which report is to be made.

(d) Column 3, "Total Receivables" and "Total Payables," shall reflect the total amount recorded in each account, and shall agree with the amounts reported on the carrier's balance sheet as at the preparation date of this schedule.

(e) Column 4, "Amounts not Overdue", shall reflect receivables or payables which are not overdue.

(f) Columns 5 through 8, "Amounts Overdue," shall reflect receivables or payables which are overdue for periods of 30 days or less, 31 to 60 days, 61 to 90 days, and over 90 days, respectively.

(g) Account 2210, "Long Term Debt," shall be detailed by class of debt, showing separately amounts held by associated companies and by others, giving the maturity dates, and effective interest rates. Describe any significant covenants relative to the debt in footnote.

(h) Line items which include claims in litigation on unpaid court judgments shall be footnoted and such claims and judgments shall be listed by amount and explained at the bottom of the schedule in the space provided therefor.

Schedule B-41—Investments Held by, or

for the Account of, Respondent (a) This schedule shall be filed by each supplemental air carrier.

(b) The data in this schedule shall be grouped as between investments held in the name of the air carrier and investments held in the name of others for the account of the air carrier. Each group shall be separately subtotaled by investments in associated companies and by investments in other than associated companies.

(c) Column 1 shall reflect the name of each associated company, and each other issuer of securities held by the air carrier.

(d) Column 4, "Book Cost," in total, for investments held in the name of the air carrier, shall agree with corresponding amounts reflected in schedule B-1 Balance Sheet, accounts 1510 and 1530.

(e) Column 5, "Number of Shares or Debt Principal Amount" shall reflect the number of shares of stock or the principal amount of bonds or notes held by the air carrier, for each class of security reported in column 2.

Schedule B-43-Inventory of Airframes and Aircraft Engines

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

(b) The indicated data shall be reported for each individual airframe, identified by type, model, and design of cabin as to use for passengers exclusively, cargo exclusively, or both passengers and cargo in combination. Data pertaining to aircraft engines may be reported on

a group basis by type of engine and type of aircraft to which related.

(c) Data in this schedule shall be grouped and subtotaled as between data pertaining to airframes and data pertaining to aircraft engines.

(d) The data to be reported shall include owned and rented airframes and aircraft engines currently in operation or in conversion. The data shall be grouped separately as to owned or leased operating equipment. Totals for owned operating equipment shall agree with property and equipment accounts 1601 Airframes; 1611 Reserve for Depreciation—Airframes; 1602 Aircraft Engines; 1612 Reserve for Depreciation-Aircraft Engines; and 1629 Flight Equipment Airworthiness Reserves. The airworthiness liabilities for rented equipment included in accounts 2190 Other Current Liabilites and 2290 Other Noncurrent Liabilities shall be shown in column 13. Data pertaining to nonoperating airframes and aircraft engines shall be reported in a group below the data for operating equipment.

(e) Data pertaining to rented airframes and aircraft engines shall be listed in columns 1 through 7 and in column 13; the cost of improvements thereto shall be listed in columns 8 through 12.

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 reporting 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".

Interim Balance Sheet

Each supplemental air carrier shall file each month two copies of a balance sheet as at the end of each month, which may be in the form prepared for man

agement purposes: Provided, That such balance sheet need not be filed as at the close of calendar quarters where the amount reflected in the "Stockholder Equity" section thereof agrees with similar data reflected on Schedule B-1 as at the same date: And provided further, That a balance sheet for the third month of the fourth calendar quarter need not be filed if the preliminary fourth-quarter Form 41 report is filed within a 30-day period rather than the prescribed 40-day period.

[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]

Section 34-Profit and Loss Elements Schedule P-1.1-Income Statement

Group I Air Carriers

(a) This schedule shall be filed by each 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.

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), MATS-FC (Military Air Transport Service Fixed Contracts), MATSCC (Military Air Transport Service 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-1.1, Income Statement.

Schedule P-5.1-Aircraft Operating Expenses-Group I Air Carriers

(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) 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 continuous 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-1.1, and the total of item 5278 Total Direct MaintenanceFlight Equipment shall agree with the