TO BE COMPLETED BY CARRIERS WITH REVENUES IN EXCESS OF $100,000

CARRIER PROPERTY

TO BE COMPLETED BY CARRIER WITH REVENUES IN EXCESS OF $100,000
AFFILIATED RELATIONSHIPS

DEFINITIONS

I. "Control" means the possession directly or indirectly, of the power to direct or cause the
direction of the management and policies of a person, whether through the ownership, of voting
securities, by contract or otherwise. If in any instance the existence of control is or may be open
to reasonable doubt, the carrier shall report to the Commission all of the material facts pertinent
to the possible existence of control.

2. "Affiliated companies", means persons that directly, or indirectly through one or more
intermediaries, control or are controlled by, or are under common control with the accounting
carrier.

Instructions:

(a). Enter the name of each company affiliated with respondent.

(b). Enter percentage of control in the relationship between the respondent and affiliate.
(c). Enter form of affiliation or control between the respondent and company shown in column
(a) as follows:

-if respondent directly affiliate insert the word 'direct'

-if respondent controls through another company insert the word 'indirect'
-if respondent is under common control with affiliate inser the word 'common'
-if respondent is controlled directly or indirectly by the company listed in column (a) insert the
word 'controlled'

-if control is exercised by other means such as a management contract or other arrangement or
whatever kind insert the word 'other'

(d). If purchase, enter the Letter "P"; if sale, enter the Letter "S". When services are both
provided and received between the respondent and an affiliat they should be listed separately and
the amounts shown separately in Column (E).

(e). Enter the total amount of purchases or sales during the year, which are applicable to the
year, for each type of service listed in column (D). Do not report net figures when services are
both provided and received between the respondent and an affiliate.

SCH. VII

The text of subsection 1249.4 is revised to read as follows: 1249.4 Annual reports of class III carriers of property.

Commencing with the year ended December 31, 1976, and for subsequent years thereafter, until further order, all class III motor carriers of property, as defined in 1240.5 of this chapter, are required to file a uniform annual report in accordance with Motor Carrier Annual Report Form M-3 (property). Such report shall be filed in the Bureau of Accounts, Interstate Commerce Commission, Washington, D.C., 20423, on or before April 30 of the year following the year to which it relates.

SUBCHAPTER C - ACCOUNTS, RECORDS AND REPORTS

PART 1249 REPORTS OF MOTOR CARRIERS

At a General Session of the INTERSTATE COMMERCE COMMISSION held at its office in Washington, D.C. on the 5th day of January 1976.

No. 35129 (SUB-NO. 5)

ADOPTION OF A UNIFORM ANNUAL FINANCIAL REPORT FOR CLASS III COMMON AND CONTRACT MOTOR CARRIERS OF PROPERTY SUITABLE TO THE INTERSTATE COMMERCE COMMISSION AND STATE REGULATORY COMMISSIONS

Consideration having been given to the matters involved in this proceeding, and the said Commission, on the date hereof, having made and filed a report herein containing its findings and conclusions, which report is hereby made a part hereof:

It is ordered, That Part 1249 of Title 49 of the Code of Federal Regulations be, and it is hereby revised to read as shown in the appendix to the above mentioned report. It is further ordered, That the prescribed amendments shall be effective for the year ending December 31, 1976.

And it is further ordered, That service of this order shall be made on all class III motor carriers of property; and to the Governor of every State and to the Public Utilities Commission or Boards of each State having jurisdiction over transportation; and that notice of this Order shall be given to the general public by depositing a copy in the Office of the Secretary, Interstate Commerce Commission, Washington, D.C., and by filing a copy with the Director, Office of the Federal Register, for publication in the Federal Register.

(Authority: 49 U.S.C. 20)

No. 36176

DISCLOSURE OF NONCAPITALIZED LEASE
COMMITMENTS BY LESSEES

49 CFR 1241, 1249, 1250, 1251)

Decided February 27, 1976

Certain revised reporting regulations governing all carriers regulated by this Commission having carrier operating revenues of $10 million or more.

REPORT OF THE COMMISSION

BY THE COMMISSION:

In June 1973, the Accounting Principles Board (APB) issued Opinion No. 31, "Disclosure of Lease Commitments by Lessees," prescribing guidelines and interpretations for the disclosure of rental expense on all long-term leases, minimum rental commitments under all noncancelable leases and other necessary information in order to determine the effect of lease commitments upon the financial position of lessees.

In October 1973, the Securities and Exchange Commission (SEC) issued Accounting Series Release (ASR) No. 147 regarding disclosure of noncapitalized lease commitments in financial statements filed with the SEC. Although the disclosure requirements are substantially the same as those set forth in APB Opinion No. 31, ASR No. 147 goes further than the Opinion by requiring separate disclosure of total rental expense and minimum rental commitments applicable to noncapitalized financing leases. In addition, ASR No. 147 provides mandatory disclosure of the present value of noncapitalized "financing" leases and the impact upon net income "as if" such leases were capitalized.

Under present reporting requirements this Commission has no rules prescribing disclosure of noncapitalized lease commitments. However, many carriers preparing annual reports to stockholders presently disclose this information in meeeting the criteria as set forth in APB No. 31 and/or ASR No. 147.

We believe the disclosures required by APB Opinion No. 31 and ASR No. 147 should be likewise required of carriers filing annual financial reports with this Commission. Because noncapitalized