Normally, Form PC-50 is filed only once. It is required of prenotification firms (generally, those with annual sales or revenues of $100 million or more) and reporting firms (generally, those with annual sales or revenues of $50 million to $100 million). Public Utilities and Insurers (as defined in Price Commission regulations) are not required to file Form PC-50 unless they have material non-utility or non-insurance activities. Form PC-50 is required of all retailers and wholesalers in the prenotification and reporting categories. Other reporting entities are not required to file Form PC-50 unless they are also required to file Form PC-51 (Report on Sales, Costs and Profits).

A manufacturing, service or professional firm that has not increased any selling price above the ceiling prices established, is not required to file Form PC-51, or Form PC-50. Firms choosing this option, however, must submit to the Price Commission the following certificate within 30 days of the close of each fiscal quarter:

I certify that as at (quarter ended date) this firm
has not increased the selling price of any of its
products above the ceiling prices established for the
August 16, 1971-November 13, 1971, freeze period.

Chief Executive Officer (or other authorized executive officer)

The Chief Executive Officer may authorize another executive officer to sign for him for this purpose. Such authorization must be in the form prescribed by the Price Commission.

Ordinarily, a Form PC-50 must be filed for the consolidated group of the Parent firm, as defined in item 3 below.

A supplementary Form PC-50 must be filed for each reporting entity..that requests or reports price adjustments on Form PC-1. If the consolidated group includes retailing or wholesaling 'entities, and manufacturing, service or professional entities, single supplementary Form PC-50 must be filed covering all retailing and wholesaling entities.

A firm may request permission not to file Form PC-50 for the consolidated group of the Parent firm. If the Price Commission approves such a request, a primary Form PC-50 must be filed for each reporting entity. The Price Commission may require that all data entered in Part II of these Forms PC-50 be supported by financial statements audited by independent public accountants.

The Price Commission may determine that an entity other than the consolidated group of the Parent firm is the appropri ate primary reporting entity for filing Form PC-50.

Where the primary Form PC-50 is filed for an entity other than the consolidated group of the Parent firm, a supplementary Form PC-50 is required for the consolidated group. Such consoli

dated filings require that only Parts I, II and VI be used.

If two or more firms own equal fractions of a subsidiary (socalled "joint ventures"); they should decide among themselves which parent is to file reports for the joint venture. The firm that elects to file such a report should explain the circumstances in an accompanying statement.

Generally Accepted Accounting Principles and Practices Applied Consistently Accounting information furnished in this report must be in accordance with generally accepted accounting principles and with the practices customarily followed by the firm, applied con.. sistently.

Data are required for at least two, and in some cases three, fiscal years. If the financial statements as originally prepared for any of these years were subsequently restated, the restated versions should be used.

"

It should be recognized that if, in the future, a firm makes a material change in an accounting policy or practice, it must prepare a revised Form PC-50, "Base Period Income Statement,' restating the base period data to reflect the change in accounting policy or practice. The revised Form PC-50, and a supporting document describing and explaining the change, must be submitted together with the first Form PC-51 reflecting such a change in accounting policy or practice.

See the instructions to Form PC-51 for further details regard. ing generally accepted accounting principles and practices, and certain specific accounting consistency requirements.

Item 1: Prior Reference Number-Answer the question in 1(a). If you are supplying requested additional information or are resubmitting a report that had been initially_returned, record the prior reference number in 1(b). The prior reference number is the number recorded by the Price Commission in the top right hand corner of page 1 of this form, in the box labeled "Reference No.' Item 2: Date Filed-Enter the date that this form is filed with the Price Commission. Firms should note that, as dis. cussed above under "Who Must File," certain firms need not file this form until they are required to commence filing Form PC-51,

84-0230-72————16

Item 3: Parent Firm Data-A Parent firm is the firm which controls a group of consolidated subsidiaries following the criteria for the preparation of consolidated financial statements in accordance with generally accepted accounting principles.

.

(a) Enter name of Parent firm.

(b) Enter address of executive office of Parent firm. (c) Enter the ending date of the most recent fiscal year as customarily used by the Parent firm.

(d) The Standard Industrial Classification (S.I.C.) code is used to classify reporting entities by the type of activity in which engaged. The "Standard Industrial Classification Manual," which defines such codes, may be obtained from the U.S. Government Printing Office, Washington, D.C. 20402. It is recognized that many firms filing this form will be engaged in more than one of the activities defined in the S.I.C. Manual. For purposes of this filing, firms should enter the four digit S.I.C. code which most closely describes their most sig. nificant activity. Where it is not practical to define the firm's activities by the four digit S.I.C. code, firms may enter the applicable three digit or two digit S.I.C. code.

(e) Enter the Parent firm's "Data Universal Numbering System" (D-U-N-S) Number, if known. If not known, leave this item blank. The D-U-N-S Number is a ninedigit number assigned to establishments by Dun & Bradstreet, Inc. If the firm has more than one D-U-N-S Number, the number entered in this item should be that assigned to the firm for the address entered above in Item 3(b) as the executive office of the Parent firm.

Item 4: Data on Entity Covered by this Filing-Fill in this item only if the reporting entity covered by this filing is different from the entity listed in Item 3. The criteria for determining such reporting entities are given above under "Who Must File."

(a) Enter name of reporting entity covered by this filing.

(b) Enter address of executive office of reporting entity.

(c) Enter the date of the most recent fiscal year of the reporting entity as customarily used.

(d) Enter the Standard Industrial Classification (S.I.C.) code for this reporting entity, following the instructions for Item 3(d), above.

(e) Enter the reporting entity's "Data Universal Num. bering System" (D-U-N-S) Number, if known. If not known, or if the reporting entity does not have a D-U-N-S Number, leave this item blank. The number entered in this item should be that assigned to the firm for the address entered above in Item 4(b) as the executive office of the reporting entity.

PART II-Summary Income Report

This part is a summary of the data required to calculate the base period profit margin rate, as well as data for the most recent fiscal year.

For purposes of determining the base period profit margin rate, the reporting entity must use data from any two of the entity's last three fiscal years ending prior to August 15, 1971. The two base years selected are indicated by entering appro priate fiscal year ending dates in sections (1) and (2) of this part. If neither of these years are the entity's most recent fiscal year ended prior to the date filed (for which financial statements are available), such recent year data must be entered in section (3) of this part.

Data entered in the Total Columns (a), (c), and (e), must be based on data used to report to the public, or where the entity does not report to the public, data should be as recorded in the entity's accounting records.

In completing this part, your attention is called to the requirements outlined above under "Generally Accepted Accounting Principles and Practices Applied Consistently."

entity that operates principally in a foreign country and whose customers are principally located in foreign countries. A foreign country is a country other than the United States and its possessions. The importing and exporting activities of domestic entities are "covered" activities.

4. Public utility.

Data in Columns (a), (c) and (e) of Part II should include the consolidated results of "covered" and non-covered activities. Consolidated data for "covered" activities should be entered in Columns (b), (d) and (f) of Part II, and Column (a) of Parts III and IV.

A supporting document which reconciles the net sales entered in the "Total" and "Covered" columns of Part II must be filed. The supporting document must show the total net sales of noncovered activities, summarized by the principal activities listed above, and a description of other reconciling items showing the amounts of such reconciling items.

Where the controlling firm, or affiliated firms allocate costs to non-covered entities, the method used to allocate such costs must be reasonable, and consistently applied in both base period fiscal years, and in future filings of Forms PC-51. Attach a schedule, to this Form PC-50 filing, describing the established allocation method.

Items 5-13: See corresponding instructions for Items 5-13 on Form PC-51.

PART III-Details of Cost of Sales

This part provides further details for the amounts entered in Item 6, and is required for the most recent fiscal year reported in Part II from each reporting entity that requests or reports price adjustments on Form PC-1. If the Form PC-50 reporting entity is a segment of a Parent firm, this part should not be completed for the consolidated group of the Parent firm. In other words, Parent firms need complete this part only if they submit a single Form PC-50 for the whole firm. Estimates

The Price Commission recognizes that some of the information required in this part cannot be obtained directly from the accounting records of some firms. The firm must provide the most reasonable estimate it can for such information and the estimating_method used must be consistently applied in future filings of Form PC-51. Attach to this filing of Form PC-50, a description of the method used to estimate the amounts included in Part III.

These estimates must be reconcilable to information that is contained in the accounting records. For example, the report calls for information on direct materials that is broken down by (a) imported, (b) "volatile," and (c) other. If a reporting entity does not have such information in its accounting records, it should provide estimates, but the total of these three estimates should equal the total direct material cost which should be obtainable from the accounting records.

As explained in the instructions to Part II, only "covered" entity costs should be entered in Column (a).

Items 14 and 15: See corresponding instructions for Items 15 and 16 on Form PC-51.

Item 16: Cost of Sales-This entry is determined by adding item 15 to, or deducting it from, line (4) of Item 14. This amount must agree with the corresponding amount in Item 6.

PART IV-Details of Other Operating Expense

This part provides further details for the amounts entered in Item 8, and is required for the most recent fiscal year reported in Part II from each reporting entity that requests or reports price adjustments on Form PC-1. If the Form PC-50 reporting entity is a segment of a Parent firm, this part should not be completed for the consolidated group of the Parent firm. In other words, Parent firms need complete this part only if they submit a single Form PC-50 for the whole firm.

As discussed in the instructions to Part III, reasonable estimates may be used to determine the details of entries in this part.

As explained in the instructions to Part II, only "covered" entity costs should be entered in Column (a). Items 17 and 18: See corresponding instructions for Items 18 and 19 on Form PC-51.

Item 19: Total Operating Expenses-This entry is computed by adding the amounts included in Items 17 and 18. This total must agree with the corresponding amount in Item 8.

PART V-Calculation of Base Period Profit Margin Rate

The purpose of this part is to calculate the base period profit margin rate. The term base period means the average of the two fiscal years selected by the reporting entity in sections (1) and (2) of Part II.

This part must be completed by all reporting entities which will be subject to the profit margin limitation. Where the instructions call for the preparation of a supplementary filing of Form PC-50 (see "Who Must File"), Part V should not be used. Mom 20: Base Years' Net Sales

(1) Enter the first base year net sales from Item 5, Column (b).

(2) Enter the second base year net sales from Item 5, Column (d).

(3) Enter the total of lines (1) and (2).

Rem 21: Base Years' Operating Income

(1) Enter the first base year operating income from Item 9, Column (b).

Form PC-51

(January 1972)

Price Commission

2000 M Street, N. W.

Washington, D.C., 20508

See mailing address on page 2

Part 1-Identifying Data

la. Is this a resubmission?

(2) Enter the second base year operating income from Item 9, Column (d).

(3) Enter the total of lines (1) and (2).

Item 22: Base Period Profit Margin Rate-The base period margin rate is calculated by dividing Item 21, line (3), by Item 20, line (3). Calculate this number to two decimal places (e.g., 9.87%).

PART VI-Certification

Type, on the lines above the signature, the name and title (including the company name) of the individual who has signed the certification. The individual certifying to this Form PC-50 must be the Chief Executive Officer of the Parent firm, or such other executive officer as authorized by the Chief Executive Officer to sign for him for this purpose. Such authorization must be in the form prescribed by the Price Commission.

1b. If "Yes," indicate prior reference number

3. Parent Firm Data

a. Name of firm

b. Address (Number and street)

City or town, State and ZIP code

c. Ending date of most recent d. Identification number fiscal year (mo. day, yr.)

Part II-Summary Income Report