1405006 Informal Interpretation

Date:
Rule:
Form Item 5
Staff:
Michael Verne
Response/Comments:

That position has not changed. Only intracompany manufacturing revenues are reported. KW concurs.

Question

From: (Redacted)
Sent Thursday, May 08, 2014 5:31PM
To: Verne, B. Michael; Berg, Karen E.; Walsh, Kathryn
Cc: (Redacted)

Subject: Question re: Item 5 and intracompany services

Hi,

Hope you're all doing well. We have a question about Item 5-when the US sub of a multinational company is paid by its non-US parent for rendering services, such as logistics, editorial, IT support etc., should those payments be counted in Item 5? Also, if the US sub pays its non-US parent company license or royalty fees, should those payments be counted in Item 5? We found the following interpretation that says that intracompany sales that should be included in Item 5 are limited to manufacturing revenues but since this pre-dates the revised rules/Form, we wanted to check with you. http://www. ftc.gov/enforcement/premerger-notification--program/informal-interpretations/0511029

About Informal Interpretations

Informal interpretations provide guidance from previous staff interpretations on the applicability of the HSR rules to specific fact situations. You should not rely on them as a substitute for reading the Act and the Rules themselves. These materials do not, and are not intended to, constitute legal advice.

Learn more about Informal Interpretations.