Question
From: (redacted)
Sent: Thursday, June 29, 2006 5:26 PM
To: Verne, B.Michael
Subject: Item 5Question
Mike,
I have a question aboutcertain non-U.S. sales: A U.S. company ("Parent") controls a non-U.S.manufacturing subsidiary ("Foreign Sub") and a U.S. salessubsidiary ("Sales Sub"). Foreign Sub manufactures a product in South Americaand sells it to a purchaser in Europe. The sale is arranged by Sales Sub (a U.S.establishment), and the purchase price is received by Sales Sub. But theproduct itself never enters the U.S. Would Parent report the revenues from thissale in Item 5 under wholesaling codes, or omit it entirely?