The instructions do not require the filing person to report internal transfers. The value of internal transfers is used to identify the products or services that generate at least $10 million in revenue. Once these products and services are identified, the instructions require reporting actual revenue generated from sales to the target or third-parties only.
(Please see the Form Instructions on page 10)
Question
We have a question regarding “Related Sales.” Specifically, we’re wondering whether the filing person falls within “(2) any other business that, to the [acquiring/acquired] person’s knowledge or belief, uses the [acquiring person’s/target’s] product, service, or asset to compete with the [target’s/acquiring person’s] product or services, or as an input for a product or service that competes or is intended to compete with the [target’s/acquiring person’s] products or services.”
We understand that internal transfers should be counted when determining whether the $10 million in revenue threshold is met. However, we were wondering whether we should (i) list the value of the intercompany transfers in the sales (in dollars) section and (ii) list the filing person (or an entity within the filing person) as a “top 10 customer” (where applicable), assuming the criteria above is otherwise met.
We were particularly curious if the filing person should list itself (or an entity within itself) even if it does not sell, license, or otherwise supply an applicable product, service, or asset to any third party.