plained 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) This schedule shall reflect at the end of each calendar quarter the amount reported in balance sheet account 1550 Special Funds-Other representing funds segregated, or on deposit with manufacturers, for the purchase of equipment, including any capitalized interest thereon. (See section 2-10 Capitalization of Interest.)

(f) The conversion from the cost method to the equity method of carrying investments in subsidiary companies shall be explained on this schedule and cross-referenced to Schedule P-2-Notes to Income Statement. Any change in the basis of accounting for investments in subsidiary and other associated companies (e.g., change from associated to subsidiary company or vice versa) shall be noted here and reported as required by section 22(d).

Schedule B-3-Paid-in Capital; SelfInsurance Reserves and Appropriations of Retained Earnings; Deferred Income Taxes

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

(b) 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.

(c) 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 cale quarter shall agree with correspor amounts reported on schedule Balance Sheet.

(d) Individual proprietors or 1 ners shall reflect the name of the prietor or each partner at the hea the columns captioned "Class of St and the balance of contributions to business entity by the proprietor or partner on line 11 Total Paid-In Ca (e) All credits and debits to insurance reserves and appropriation retained earnings, respectively, sha identified and explained in the " Insurance and Appropriations of tained Earnings" section of this sc ule. The balances of accounts Reserve for Self-Insurance and Appropriations of Retained Earning at the end of each calendar quarter agree with corresponding amounts ported on schedule B-1-Balance S

(f) Column 1 of the "Deferred Inc Tax" section of this schedule shall ic tify the source of each type of tax ferral; for example, depreciation u § 167 of the Internal Revenue Code deferred training costs. The amo reflected in column 2 shall agree amounts reflected in column 6 for same sources at the close of the pred ing quarter. The amounts reflected column 6 shall, in aggregate, agree v amounts reported on schedule B-1 at close of the current quarter for defer income taxes. Columns 3, 4, and 5, spectively, shall reflect gross provisi gross applications and adjustments deferred income taxes during the cur quarter for each tax source reflected column 1. Adjustments reflected column 5 shall be fully explained schedule P-4 and cross-referenced the to on this schedule.

Schedule B-4—Reserve for Uncollect Accounts; Accounts With Subsidiar Other Associated Companies and N transport Divisions

(a) This schedule shall be filed by route air carriers.

(b) Each reserve for uncollectible counts shall be separately identified the indicated section of this sched Columns 1 and 2 shall reflect the acco number and the description of the as against which each reserve is provid The balance of each reserve as at t

[ of each quarter shall agree with responding amounts reported on edule B-1-Balance Sheet. c) In the "Accounts With SubsidiarOther Associated Companies and atransport Divisions" section of this edule, Column 1 shall list the name each associated company and describe h nontransport division. Associated apanies shall be separately grouped i subtotaled according to those in ich the air carrier holds in excess of percent of the voting capital stock and se in which the air carrier holds 50 'cent or less of the voting capital stock. e respective groups shall be captioned ubsidiaries" and "Other Associated mpanies."

(d) Column 4 "Investments at Cost" all reflect the cost to the air carrier at te of acquisition of investments in ociated companies. The cost of investnts in subsidiary companies, plus the lity in undistributed earnings or losses ce acquisition reflected in column 5, quity in Undistributed Earnings,' all agree in aggregate with the corrending amounts in balance sheet baccount 1510.1 Investments in Subiary Companies. The cost of investents in other associated companies all agree with the corresponding mounts in balance sheet subaccount 10.2 Investments in Other Associated mpanies.

(e) Column 5 "Equity in Undistributed rnings" shall reflect the equity in unstributed earnings or losses of subsidiy companies since acquisition.

hedule B-5-Property and Equipment (a) This schedule shall be filed by all ute air carriers.

(b) A complete report shall be made this schedule for the overall or system erations conducted by the air carrier. (c) Column 3, “Additions" shall rect the book cost of property and uipment acquired and the cost of imovements, betterments or other addions to each class of property and uipment during the current quarter. (d) Column 4, "Retirements" shall flect the book cost of each class of *operty and equipment retired during le current quarter. The amounts in is column shall agree by accounts ith the amounts shown in column 7 of chedule B-8-Property and Equipment etired.

(e) Column 5, "Transfers between roperty Accounts" shall reflect the book

cost of property and equipment reclassified between property and equipment accounts during the current quarter. Credit transfers from an account shall be indicated by an asterisk (*).

(f) Column 6, "Transfers between Other Accounts" shall reflect the cost of assets reclassified as between property and equipment and other balance sheet accounts during the current quarter and identification of the contra accounts affected by the transfer. Credit transfers shall be indicated by an asterisk (*). The cost of property and equipment and the related balances in reserves for depreciation and airworthiness at the end of each quarter shall agree with corresponding amounts reported on schedule B-1-Balance Sheet. Schedule B-7-Airframes and Aircraft Engines Acquired

(a) This schedule shall be filed by all route air carriers except local service air carriers.

(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 non-sleeper version. When airframes are designed for multiple adjustable seating configurations, the maximum number of seats for which designed shall be reported. When the seating configuration of airframes is modified subsequent to original acquisition, the revised passenger capacity of each airframe shall be reported in the quarter in which modified and referenced to identify original capacity reported.

(i) Column 11, "Cost" shall agree in totals for airframes and aircraft engines, respectively, with the corresponding cost of additions reported in schedule B-5, column 3, "Additions".

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

Schedule B-7(a)—Reinvestment of Flight Equipment Capital Gains

(a) This schedule shall be filed by each carrier which desires to establish

that it is entitled to the benefit of tion 406(d) of the Act and which filed schedule B-8(a) notifying Board that it has reinvested the ca gains reported thereon in flight eq ment and/or used the capital gain retirement of debt contracted for purchase or construction of f equipment.

(b) Column 1 "Description of F Equipment Acquired and Debt Reti shall identify the specific items of fil equipment acquired, the applicable count number, and the particular i of debt being retired including a scription of the flight equipment which such debt was contracted, type of obligation, date of maturity terest rate, commitment fees, and applicable, name of creditor.

(c) Column 2 "Date of Applicatio Gain" shall include the day, month year on which the gain was applie each item of flight equipment o liquidation of debt.

(d) Column 3 "Cost” shall include total amount of cash or its equiva actually paid to acquire each item equipment or to liquidate debt incu in the purchase or construction of fi equipment.

(e) Column 5 "Source of Gains" s identify the gain, reported on sche B-8(a), which has been reinvested.

(f) This schedule shall include a arate memorandum summary of the equipment funds in account 1550 Spe Funds-Other, under benefit of sec 406(d) of the Act. The summary s list the date of sale or other disposi from which the gain was derived the related balance remaining in count 1550.

Schedule B-7 (b) —Flight Equipmer
Acquired

(a) This schedule shall be filed each local service air carrier.

(b) The indicated data shall be ported for each individual airfra identified by type, model, and design cabin as to use for passengers exclusiv cargo exclusively, or both passengers cargo in combination. Data pertain to aircraft engines shall be reported aggregate for each type or model. D pertaining to propellers, aircraft navi tion and communication equipment, ¤ cellaneous flight equipment, and fli equipment rotable parts and assemb shall be reported in aggregate for e such property classification. Where

uisition of various units of flight ipment is priced as a single transac1, the cost shall be apportioned to h classification and, within the airne and engine classifications, to each rame, and each type or model of ine, respectively, with explanation in tnote. A separate subsection shall w, for each type of airframe acquired, average value of items of naviga1 and communication equipment and cellaneous flight equipment required installation in ordinary operation. frame units leased from others for re than 90 days shall be reported in additional subsection. Also, a nota1 shall be made by license number for frame units of the air carrier rened after lease to others for more n 90 days. Airframe units obtained ough interchange lease arrangements ll not be so reported.

c) Dates for acquisition of individual frames and groups of aircraft engines ll indicate the day, month and year. tes for all other flight equipment shall icate the month and year of acquisi1. The number of aircraft engines I propellers acquired shall be indicated column 5 “Number of Units Acquired." d) Report shall be made in the quarin which flight equipment is actually quired irrespective of whether the cost reof is reflected in the property and ipment accounts during the current arter or a subsequent quarter. If the t data are not reflected in the current arter, a footnote to that effect shall company the report of acquisition. e costs shall be reported during the arter in which determined, and the ipment to which related shall be ed again in this schedule with comte information and shall be identified being the same equipment reported the earlier date.

(e) Column 2, "Date Placed in Transrt Service," shall relate to airframes y and shall be the date on which each frame was or will be placed in reguservice by the reporting entity. If s date is not known at the time of subssion of the report, an estimated date aring the notation "estimate" shall be ovided with the exact date shown by tnote on a subsequent schedule B-7 Oin which the airframe is reidentified license number, type of aircraft and te acquired.

(f) Column 8, "Maximum Continuous rsepower/Pounds Thrust" shall reEt, as appropriate, the maximum con

tinuous horsepower rating or pounds of maximum continuous static thrust for 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 non-sleeper version. When airframes are designed for multiple adjustable seat.ing configurations, the maximum number of seats for which designed shall be reported. When the seating configuration of airframes is modified subsequent to original acquisition, the revised passenger capacity of each airframe shall be reported in the quarter in which modified and referenced to identify original capacity reported.

(i) Column 11, "Cost" shall agree in totals for each property classification with the corresponding cost of additions reported in schedule B-5 column 3, "Additions."

(j) Column 12, "Estimated Value of Overhaul Acquired" shall reflect the value of the remaining unexpired overhaul hours with respect to each airframe or aircraft engine, before relicensing is required, at the date of acquisition.

(k) Column 13, "Estimated Cost of Full Overhaul" shall reflect the entire cost of overhaul for each airframe and aircraft engine on either a periodic or phase overhaul basis. In the latter case, this column shall include the cost of all operations which would encompass a full overhaul. (See sec. 5-4(f) for definition

of "overhaul".)

(1) Column 14, "Reserve for Depreciation" shall include the amount of such reserve applicable to property and equipment transferred from nontransport divisions.

(m) Column 15, "Estimated Residual Value" shall reflect in dollars the residual value assigned to the equipment acquired exclusive of any amount reported in columns 12 and 13.

(n) Column 16, "Estimated Depreciable Life (mos.)" shall reflect the esti

mated depreciable life of each airframe and each group of aircraft engines in months (e.g., 144).

NOTE: The reporting requirements contained herein have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942.

Schedule B-8—Property and Equipment Retired

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

(b) The indicated data shall be reported for the sale or retirement of each airframe, each type of aircraft engine (stating the number of units retired) and, to the extent retired along with airframes and engines, in aggregates by accounts, for operating property and equipment included in accounts 1603 through 1608 and nonoperating property and equipment included in accounts 1703 through 1708. Disposition of properties in accounts 1603 through 1608 and 1703 through 1708 not related to airframe and aircraft engine retirements shall be reported in a separate group for each account. Ground property and equipment disposed of shall be reported in aggregate for all accounts, with subdivisions between operating and nonoperating property and equipment. Airframe units leased 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 and as reported in schedule B-5, column 4, "Retirements".

(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 12, "Gain or Loss" shall, in aggregate for retirements of all property and equipment together with gain or loss on sale of securities, agree with

amounts reflected by the air carrie schedule P-3 in profit and loss su counts 81.1 Capital Gains and Loss Operating Property and 81.2 Cap Gains and Losses-Other.

(h) Column 13, "Disposition", s reflect the name of the person or ganization to which airframes and craft engines are sold or a notation to the nature of the retirement and account to which any depreciated has been charged if not sold. Items cluded in accounts 1603 through 1 and 1703 through 1708, sold as a of airframe or aircraft engine s transactions, shall also be identified the name of the buyer. Other sale items included in these accounts s be reported in a separate group in gregate for each property account fected, while all ground property positions shall be reported in a si aggregate and need not be identified names of the buyers.

Schedule B-8(a)-Flight Equipm Capital Gains Invested or Deposi for Reinvestment in Flight Equipm (a) This schedule shall be filed each carrier which desires to estab that it is entitled to the benefits of S tion 406(d) of the Act and which reinvested or intends to reinvest ga derived from the sale or other disp tion of flight equipment pursuant to F 235 of the Economic Regulations.

(b) Column 1, "Description of Fli Equipment Retired" shall identify various items of flight equipment reti including the applicable account num

(c) Column 2, "Date of Sale or Ot Disposition" shall include the day, month and the year on which each it was sold or otherwise disposed of wit the meaning of § 235.1(b) of Part 23

(d) Column 8, "Net Amount of Ga shall reflect the net of column 5 mi columns 6 and 7; an entry shall be m transferring an amount equal to amount in column 8 from account 2 Unappropriated Retained Earnings account 2930 Appropriations of 1 tained Earnings. If an initial me urement of gain is subject to adjustm to reflect losses which result upon c lection of installment sales or in conve ing proceeds to cash, the adjustm should be reported at the time the 1 is determined. Upon the investment gains in flight equipment, an equival amount may be returned to account 2 Unappropriated Retained Earnings.