Goto Section: 65.810 | 65.830 | Table of Contents
FCC 65.820
Revised as of October 2, 2015
Goto Year:2014 |
2016
§ 65.820 Included items.
(a) Telecommunications plant. The interstate portion of all assets
summarized in Account 2001 (Telecommunications Plant in Service) and Account
2002 (Property Held for Future Use), net of accumulated depreciation and
amortization, and Account 2003 (Telecommunications Plant Under
Construction), and, to the extent such inclusions are allowed by this
Commission, Account 2005 (Telecommunications Plant Adjustment). Any interest
cost for funds used during construction capitalized on assets recorded in
these accounts shall be computed in accordance with the procedures in Sec.
32.2000(c)(2)(x) of this chapter.
(b) Material and supplies. The interstate portion of assets summarized in
Account 1220.1 (Material and Supplies).
(c) Noncurrent assets. The interstate portion of Class B Rural Telephone
Bank stock contained in Account 1410 and the interstate portion of assets
summarized in Account 1410 (Other Noncurrent Assets) and Account 1438
(Deferred Maintenance, Retirements and Deferred Charges), only to the extent
that they have been specifically approved by this Commission for inclusion
(Note: The interstate portion of assets summarized in Account 1410 should
not include any amounts related to investments, sinking funds or unamortized
debt issuance expense). Except as noted above, no amounts from accounts 1406
through 1500 shall be included.
(d) Cash working capital. The average amount of investor-supplied capital
needed to provide funds for a carrier's day-to-day interstate operations.
Class A carriers may calculate a cash working capital allowance either by
performing a lead-lag study of interstate revenue and expense items or by
using the formula set forth in paragraph (e) of this section. Class B
carriers, in lieu of performing a lead-lag study or using the formula in
paragraph (e) of this section, may calculate the cash working capital
allowance using a standard allowance which will be established annually by
the Chief, Wireline Competition Bureau. When either the lead-lag study or
formula method is used to calculate cash working capital, the amount
calculated under the study or formula may be increased by minimum bank
balances and working cash advances to determine the cash working capital
allowance. Once a carrier has selected a method of determining its cash
working capital allowance, it shall not change to an optional method from
one year to the next without Commission approval.
(e) In lieu of a full lead-lag study, carriers may calculate the cash
working capital allowance using the following formula.
(1) Compute the weighted average revenue lag days as follows:
(i) Multiply the average revenue lag days for interstate revenues billed in
arrears by the percentage of interstate revenues billed in arrears.
(ii) Multiply the average revenue lag days for interstate revenues billed in
advance by the percentage of interstate revenues billed in advance. (Note: a
revenue lead should be shown as a negative lag.)
(iii) Add the results of paragraphs (e)(1) (i) and (ii) of this section to
determine the weighted average revenue lag days.
(2) Compute the weighted average expense lag days as follows:
(i) Multiply the average lag days for interstate expenses (i.e., cash
operating expenses plus interest) paid in arrears by the percentage of
interstate expenses paid in arrears.
(ii) Multiply the average lag days for interstate expenses paid in advance
by the percentage of interstate expenses paid in advance. (Note: an expense
lead should be shown as a negative lag.)
(iii) Add the results of paragraphs (e)(2) (i) and (ii) of this section to
determine the weighted average expense lag days.
(3) Compute the weighted net lag days by deducting the weighted average
expense lag days from the weighted average revenue lag days.
(4) Compute the percentage of a year represented by the weighted net lag
days by dividing the days computed in paragraph (e)(3) of this section by
365 days.
(5) Compute the cash working capital allowance by multiplying the interstate
cash operating expenses (i.e., operating expenses minus depreciation and
amortization) plus interest by the percentage computed in paragraph (e)(4)
of this section.
[ 54 FR 9048 , Mar. 3, 1989, as amended at 60 FR 12139 , Mar. 6, 1995; 67 FR 5703 , Feb. 6, 2002; 67 FR 13229 , Mar. 21, 2002]
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Goto Section: 65.810 | 65.830
Goto Year: 2014 |
2016
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