§  36.412   Apportionment procedures.

   (a) For apportionment purposes, the expenses in this account are
   segregated into two groups as follows: (1) Operating Federal, State and
   local income taxes and (2) all other operating taxes.

   (b) Operating Federal, State and local income taxes are apportioned
   among the operations on the basis of the approximate net taxable income
   (positive or negative) applicable to each of the operations. The
   approximate net taxable income from each of the operations is the
   summation of the following amounts apportioned to each operation by
   means of the procedures set forth in this Manual:

   (1) Operating revenues,

   (2) Less operating expenses,

   (3) Less operating taxes except the net income tax being apportioned
   and except any other tax not treated as a deductible item in the
   determination of taxable net income for this purpose.

   (4) Less operating fixed charges.

   (i) The amount of fixed charges attributable to the operations is
   obtained by subtracting the tax component (positive or negative)
   attributable to other than the operating fixed charges, i.e., fixed
   charges on non-operating investments are that proportion of total fixed
   charges which non-operating net investments are of total operating and
   non-operating net investments.

   (ii) Operating fixed charges including interest on Rural Telephone Bank
   Stock are apportioned among the operations on the basis of the
   separation of the cost of telephone plant less appropriate reserves.

   (c) Other operating taxes should be directly assigned to the
   appropriate jurisdiction where possible, e.g., Local Gross Receipts may
   be directly identified as applicable to one jurisdiction. Where direct
   assignment is not feasible, these expenses should be apportioned among
   the operations on the basis of the separation of the cost of
   Telecommunications Plant in Service—Account 2001.

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Equal Access Expenses

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