») Column 9, "Disposition" shall rethe name of the person or organion to which the flight equipment is or a notation as to the nature of the osition if not sold.

1) Columns 10 and 11 shall reflect the ▸ and amount of each gain deposited re-equipment fund for reinvestment Light equipment. Such deposits shall recorded in account 1550 Special ds-Other.

3) Column 12 shall identify the asin the fund and shall indicate the tion of the fund if not in immediate sical possession of the air carrier. 1) This schedule shall include a septe memorandum summary of the reipment funds in account 1550 Special ids-Other, under benefit of section (d) of the Act. The summary shall the date of sale or other disposition n which the gain was derived and the ted balance remaining in account J.

edule

B-9-Inventory of Flight quipment Spare Parts and Assemlies

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

o) The indicated data shall be reted separately for each class of airne parts, aircraft engine parts and er flight equipment parts, by types of rames or aircraft engines to which licable, or as "interchangeable" when licable to more than one aircraft or ine type and shall be reported arately for expendable parts and able parts and assemblies. Expende parts and rotable parts shall be arately grouped, subtotaled in colns 2 through 8, and identified in umn 1 by asset account number.

c) Column 2, "Inventory at End of iod" shall reflect the book balance for h class of parts and assemblies reted in column 1 as at the close of the month period for which report is being de and shall agree, in aggregate for endable parts and rotable parts septely, with the respective balances reted for such asset classifications in current schedule B-1 Balance Sheet. d) Column 3, "Inventory Subject to Es Provisions," shall reflect for each Es of flight equipment expendable ts reflected in column 1 the predeterned level of inventory against which eserve for loss in value is being aced.

(e) Column 4, "Balance Beginning of Period," shall reflect the balance of accumulated valuation reserve provisions existing for each classification reflected in column 1 as at the beginning of the 12-month period for which report is being made and shall agree with the balances shown in column 7, Balance End of Period, on the next previous report.

(f) Column 5, "Provisions During Period," shall reflect for each classification shown in column 1 the net provisions to valuation reserves against flight equipment parts and assemblies during the 12month period for which report is being made, net of adjustments for inventory declines. The amounts reported in this column for expendable parts shall agree with the amounts reported in account 73 for the same 12-month period.

(g) Column 6, "Retirements During Period," shall reflect for each classification shown in column 1 the portion of accumulated valuation reserve provisions for flight equipment parts and assemblies absorbed in abandonment or other retirements of parts and assemblies during the 12-month period for which report is being made.

(h) Column 7, "Balance End of Period," shall reflect the balance of accumulated valuation reserve provisions for each classification shown in column 1, existing as at the close of the 12-month period for which report is being made and shall agree, in aggregate for expendable and rotable parts, separately, with the respective current balances reflected for such asset classifications in schedule B-1 Balance Sheet.

(i) Column 8, "Cost Less Valuation Reserves," shall reflect the differences between columns 2 and 7.

Schedule B-10-Developmental and
Preoperating Costs

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

(b) Separate copies of this schedule shall be filed for projects directly applicable to each separate operating entity of the air carrier and for the air carrier as a whole covering projects which are applicable in common to all transport operating entities.

(c) Column 1 shall reflect an identification and complete description of each project for which costs are deferred in balance sheet account 1830. The description shall include the CAB Docket

number in cases of projects involving a proceeding before the Civil Aeronautics Board.

(d) Explanation of the amounts included in column 3 shall disclose the general characteristics of the amounts deferred during the current quarter for each project, for example, the cost of regulatory proceedings; the cost of pilot, mechanic and ground crew training; special engineering; aircraft development flights; publicity flights; and route familiarization flights.

(e) Column 6, "Unamortized Balance-End of Quarter" shall in total agree, when aggregated for the air carrier as a whole, with the corresponding balance of account 1830 shown in schedule B-1-Balance Sheet.

(f) Column 7, "Development Costs Charged to Account 89" shall reflect costs incurred in projects which do not contribute to or protect air transportation services of the air carrier. Schedule B-41-Investments Held by, or

for the Account of, Respondent

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

(b) The data shall be grouped and separately subtotaled according to: (1) Investments in subsidiary companies; (2) investments in other associated companies, and investments in other than associated companies; and (3) notes and accounts receivable due to the air carrier one year beyond the date of the report.

(c) Column 1 shall reflect the name of each associated company, and each other issuer of securities held by the air carrier. This column shall also reflect the name of each company from which noncurrent notes and accounts receivable are due to the air carrier.

(d) Column 2 shall reflect the type of security, such as stocks, bonds, notes, etc., with respect to investments, and the words "a/c rec." or "notes rec.", as appropriate, with respect to noncurrent receivables.

(e) Column 3 shall reflect the words "yes" for investments held in the name of the air carrier and "no" for investments held in the name of others for the account of the air carrier.

(f) Column 4 "Cost" shall reflect the cost of the investments to the carrier. The cost of investments in subsidiary companies, plus the equity in undistributed earnings or losses since acquisition reflected in column 5, "Equity or Book Value", shall agree in aggregate with

the corresponding amounts in balan sheet subaccount 1510.1 Investments Subsidiary Companies. The cost of vestments in other associated compani shall agree in total with correspondin amounts reflected in balance sheet counts 1510.2 Investments in Oth Associated Companies and 1530 Oth Investments and Receivables, respe tively.

(g) Column 5 “Equity or Book Valu shall reflect the equity in undistribut earnings or losses of subsidiary com panies since acquisition, or the bo value of investments in other associat companies and other than associata companies as of the date of this schedul This column does not apply to inves ments in industry-owned service org nizations which operate on a nonpro basis.

(h) Column 6 "Number of Shares Debt Principal Amount" shall reflect number of shares of stock or the princ pal amount of bonds or notes held by carrier.

Schedule B-42-Accounts 1410 Short Term Prepayments, 1550 Specia Funds-Other, 1820 Long-Term Pr payments, 1880 Other Intangible 1890 Other Deferred Charges, 239 Other Deferred Credits

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

(b) The data in this schedule shall grouped and subtotaled for each indi cated balance sheet account in numer cal order and shall identify the natur and amount of each item included each such balance sheet account as the close of the current accountin period.

Schedule B-43-Inventory of Airframe and Aircraft Engines

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

(b) A single set of this schedule sha be filed for the overall corporate or othe legal entity comprising the air carrie

(c) The indicated data shall be re ported for each individual airfram identified by type, model, and design cabin as to use for passengers exclusivel cargo exclusively, or both passenger and cargo in combination. Data per taining to aircraft engines shall be re ported on a group basis by type of engin and by type of aircraft to which related (d) Data in this schedule shall b grouped and subtotaled as between dat

aining to airframes and data perIng to aircraft engines. Data pering to nonoperating airframes and raft engines shall be reported in a p below the data for operating pment.

=) The data to be reported shall ine owned and rented airframes and raft engines currently in operation in conversion. Data pertaining to ed airframes and aircraft engines 1 be listed in columns 1 through 7 in column 13; the cost of improvets thereto shall be listed in columns rough 12.

) Column 8, "Cost" shall agree in Is for owned and operating airframes aircraft engines, respectively, with esponding amounts reflected in acnts 1601 and 1602 in column 7 of edule B-5 as at December 31 of the rting year.

) Column 9, "Reserve for Deprecia"shall include the accumulations of provisions for losses due to use and lescence as recorded in balance t accounts 1611 Reserve for reciation-Airframes and 1612 Ree for Depreciation-Aircraft En

S.

1) Column 10, "Depreciated Cost" 1 reflect Cost (column 8) less Ree for Depreciation (column 9). ) Column 11, "Estimated Residual le" shall reflect in dollars the residual e assigned to airframes and aircraft nes respectively, including any over1 value not subject to depreciation. ) Column 12, "Estimated DepreciaLife (Months)" shall reflect the estied depreciable life of each airframe each group of aircraft engines.

【) Column 13, "Flight Equipment worthiness Reserves or Maintenance ility” shall include amounts accuated for owned airframes and aircraft ines in account 1629 Flight Equipt Airworthiness Reserves and punts accumulated for leased airmes and aircraft engines in accounts O Other Current Liabilities and 2290 er Noncurrent Liabilities.

) Totals for owned operating equipat shall agree with property and pment accounts 1601 Airframes; 1 Reserve for Depreciation-Airmes; 1602 Aircraft Engines; 1612 Ree for Depreciation-Aircraft Enes; and 1629 Flight Equipment Airthiness Reserves. The airworthiness ilities for rented equipment included

99-132 0-69 -16

in accounts 2190 Other Current Liabilities and 2290 Other Noncurrent Liabilities shall be shown in column 13.

Schedule B-44-Transactions With
Associated Companies

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

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

(c) The data in this schedule shall be grouped and subtotaled separately for balance sheet accounts 1250 Notes and Accounts Receivable-Associated Companies, 1510 Investments in Associated Companies, 2050 Notes and Accounts Payable-Associated Companies, and 2240 Advances from Associated Companies.

(d) Column 1 shall reflect, under each affected balance sheet account, the name of each associated company.

(e) Column 2 shall reflect, for each item listed in column 1, the balance as at the close of the next previous calendar year.

(f) Column 3 shall reflect, for each item listed in column 1, the total billings to associated companies in the case of asset accounts, or the total billings from associated companies in the case of liability accounts, during the calendar year. Billings by associated companies shall not be offset against billings to associated companies but shall each be reported separately in gross amounts billed after reflection of debit or credit adjustments to correct or otherwise modify amounts previously billed whether such adjustments originate with the billed or billing company.

(g) Column 4 shall reflect, for each item listed in column 1, adjustments resulting from restatements stemming from changes in foreign exchange rates.

(h) Column 5 shall reflect, for each item listed in column 1, the amount of account settlements effected during the calendar year.

(i) Column 6 shall reflect, for each item listed in column 1, the balance as at the close of the current calendar year.

(j) Column 7 shall reflect, for each item listed in column 1, the amount of contra debits to liability accounts or contra credits to asset accounts during the calendar year which affected other balance sheet accounts.

(k) Column 8 shall reflect, for each item listed in column 1, the amount of

contra debits to liability accounts or contra credits to asset accounts during the calendar year which affected profit and loss accounts. The sum of the amounts shown for each associated company account in columns 7 and 8 shall agree with the amount shown for total billings listed in column 3 for each such account.

(1) Amounts to be reported on this schedule shall include all transactions cleared through balance sheet accounts 1250, 1510, 2050, and 2240. Transactions with associated companies for transport services settled through airline clearing houses shall not be reflected in this schedule unless transferred from clearing houses for direct settlement between the air carrier and associated companies. The contra amounts to billings shall be classified in terms of their inherent characteristics as to balance sheet or profit and loss impact and the ultimate disposition to be made of such amounts without regard to any intermediate accounting which may be performed.

Schedule B-45 [Reserved]

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

(a) This schedule shall be filed by all route air carriers 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 name and address of holders of m than 5 percent of the issue or $500, whichever is smaller, showing for e such holder the amount held as at end of the reporting period.

Schedule B-47-Lease Obligations—
Flight Equipment

(a) This schedule shall be filed by route air carriers and shall reflect in mation pertaining to each flight-equ ment lease obligation with annual re of $500,000 or 1 percent of total debt equity capital, whichever is less, excluding leases with annual rental less than $100,000.

(b) A single set of this schedule s be filed for the overall corporate or ot legal entity comprising the air car

(c) Column 1 shall reflect a desc tion of each item of flight equipm under lease by the reporting carrie the magnitude specified in paragr (a).

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

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

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

(g) Column 5 shall reflect the agg gate amount of the contractual obli tion payable over the full life of the le including interest and other charges.

(h) Column 6 shall reflect the t amount due and payable under the le in the ensuing twelve-month period cluding interest and other charges. the lease is conditional, the minim amount due in the twelve months sl be stated with explanation. Where amount varies from year to year schedule of payments shall be attach

(i) Column 7 shall indicate whet the lease contains purchase option p visions by insertion of the word "y or "no".

Interim Balance Sheet

Each route carrier shall file el month two copies of a balance sheet at the end of each month, which may in the form prepared for managem purposes: Provided, That such bala sheet need not be filed as at the close calendar quarters where the amount! flected in the "Stockholder Equity" tion thereof agrees with similar d reflected on Schedule B-1 as at the sa

e: And provided further, That a balce sheet for the third month of the rth calendar quarter need not be filed the preliminary fourth-quarter Form report is filled within a 30-day period her than the prescribed 40-day iod.

Memorandum Subclassification of
Ground Property Investment

(a) This schedule shall be filed in plicate by each Group III air carrier. (b) This schedule shall include the net estment after depreciation and the rent depreciation expense for ground operty and equipment in the accounts ed on the schedule.

c) Column 1 lists the accounts and classifications in which the ground perty or equipment is to be reported, ording to its use in the normal course the carrier's operations. "General" 1 "other" subclassifications are proed for units of property normally lized in more than one type of service for other than the services listed. th respect to account 1636 Furniture, tures and Office Equipment, data cessing equipment used for reservaas purposes shall be included in the a processing equipment subclassifiion; all other technical reservations ipment, such as remote inquiry stans, whether at reservations control ters or at ticket counters, shall be ssified as reservations equipment.

-327, 26 FR. 4222, May 16, 1961, as ended by ER-369, 27 F.R. 12819, Dec. 28, 2; ER-415, 29 F.R. 12674, Sept. 9, 1964; 417, 29 F.R. 13530, Oct. 1, 1964; ER-425, 30 746, Jan. 23, 1965; ER-435, 30 FR. 7704, le 15, 1965; ER-483, 32 F.R. 2812, Feb. 11, 7; ER-484, 32 FR. 5368, Mar. 30, 1967; 530, 33 F.R. 4797, Mar. 21, 1968; ER-546, R. 18698, Dec. 18, 1968]

tion 24-Profit and Loss Elements hedule P-1.1-Income Statement

Group I Air Carriers

hedule P-1.2-Income Statement— 'oup II and Group III Air Carriers a) Schedule P-1.1 shall be filed by h Group I route air carrier and schedP-1.2 shall be filed by each Group II carrier and each Group III air carrier. b) Separate income statements shall filed, covering all indicated items Ough "Net Income After Special ms" for each separate operating enof the air carrier and for the overor system, operations of the air carThe indicated items following "Net

Income After Special Items" shall be reported on only the income statement filed for the air carrier's system.

(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) Data reported in the "12-Monthsto-Date" column shall represent for each individual item the sum of amounts reported in the "Quarter" column for the current and next previous three quarters.

(e) “Unappropriated Retained Earnings-Beginning of Period" shall be the sum of the balances of "Unappropriated Retained Earnings" and "Net IncomeYear to Date" reported on the balance sheet as at the close of the corresponding quarter of the previous year, in the case of the "12-Months-to-Date" column, and as at the close of the previous quarter, in the case of the "Quarter" column.

(f) “Unappropriated Retained Earnings-End of Period" shall be, in the cases of both the "12-Months to Date" and "Quarter" columns, the sum of the balances of "Unappropriated Retained Earnings" and "Net Income-Year to Date" 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 all route air carriers.

(b) Separate sets of this schedule shall be filed for each separate operating entity and for the overall or system operations of the air carrier.

(c) 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 cross-referenced to the affected profit and loss account.

(d) Each air carrier shall include on this schedule a description of each interruption in air transport operations, the aggregate effect of which is ten (10) percent or more of the scheduled revenue plane-miles which, except for the interruption, would have been operated during the month or either of two consecutive months affected. The information to be reported for each such interruption in operations shall consist of: (1) for the report period in which partial or complete interruption first occurs, the