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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 PNO staff on the applicability of the HSR rules to specific fact situations. They do not necessarily reflect the position of the Commission. 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.

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