D - NOI

Appendix D

Summary of Adopted Adjustments to Net Operating Income (NOI) - Pacific Bell Intrastate Regulated Operations

Phase 2A

Adopted Adjustments to NOI ¹

1997 ¹

1998 ¹

1999 ¹

Total

Reference

Phase 2A

References to Phase 2A Decision except as noted.

1.

Pension Trust Fund Withdrawal

-

-

$40,737,000

$40,737,000

Exhibit Phase 2A: 409, Table 7 of 7

2.

SFAS 106 - Regulatory Asset Write-Off

-

$149,765,000

-

$149,765,000

Appendix F

3.

SFAS 106 - VEBA 3 to VEBA 5 Transfer

$5,829,000

$35,559,000

-

$41,388,000

Appendix H, Lines 7 & 14

4.

SFAS 106 - VEBA 3 Contributions ²

-

$41,557,480

$3,147,000

$44,704,480

Appendix I, Lines 14 & 30

5.

Income Tax Flow Through - Phase 2A Issues

($13,753,000)

$58,438,000

$195,901,000

$240,586,000

Appendix J, Column L

6.

Total Phase 2A

($7,924,000)

$285,319,480

$239,785,000

$517,180,480

Note 1: All amounts are after-tax (normalized), except for the adjustment for flow-through tax accounting, which represents the effect of using flow-through tax accounting instead of normalized tax accounting with respect to Phase 2A issues that do not result in an audit adjustment.

Note 2: No adjustment to TBO amortiz. exp. for 1997 because the SFAS 106 costs recognized for CPUC purposes during 1997 equaled tax-deductible contributions (which exceeded the SFAS 106 accrual), making it unnecessary to revise SFAS 106 costs reported during 1997 to reflect the corrected TBO.


	Appendix D

	Summary of Adopted Adjustments to Net Operating Income (NOI) - Pacific Bell Intrastate Regulated Operations
	Phase 2A


	Adopted Adjustments to NOI ¹	1997 ¹	1998 ¹	1999 ¹	Total	Reference
	Phase 2A					References to Phase 2A Decision except as noted.
1.	Pension Trust Fund Withdrawal	-	-	$40,737,000	$40,737,000	Exhibit Phase 2A: 409, Table 7 of 7
2.	SFAS 106 - Regulatory Asset Write-Off	-	$149,765,000	-	$149,765,000	Appendix F
3.	SFAS 106 - VEBA 3 to VEBA 5 Transfer	$5,829,000	$35,559,000	-	$41,388,000	Appendix H, Lines 7 & 14
4.	SFAS 106 - VEBA 3 Contributions ²	-	$41,557,480	$3,147,000	$44,704,480	Appendix I, Lines 14 & 30
5.	Income Tax Flow Through - Phase 2A Issues	($13,753,000)	$58,438,000	$195,901,000	$240,586,000	Appendix J, Column L
						Appendix J, Column L
6.	Total Phase 2A	($7,924,000)	$285,319,480	$239,785,000	$517,180,480


	Note 1: All amounts are after-tax (normalized), except for the adjustment for flow-through tax accounting, which represents the effect of using flow-through tax accounting instead of normalized tax accounting with respect to Phase 2A issues that do not result in an audit adjustment.
	Note 2: No adjustment to TBO amortiz. exp. for 1997 because the SFAS 106 costs recognized for CPUC purposes during 1997 equaled tax-deductible contributions (which exceeded the SFAS 106 accrual), making it unnecessary to revise SFAS 106 costs reported during 1997 to reflect the corrected TBO.