J - Flow Through

Appendix J

INCOME TAX FLOW-THROUGH ADJUSTMENT

YEAR 1997

($000)

------- Recorded FCC BASIS --------Deferred (i.e., Normalized) Income Tax Expense

Jurisdictional Adjustments

IEMR Adjustments

Total Intrastate E+F+G+H

Change in Deferred (i.e., Normalized) Income Tax Exp. Caused by Audit Adjustment

Deferred (i.e., Normalized) Income Tax Exp. Net of Audit Adjust.I+J

Increase (Decrease) to Net Operating Income by Removing Deferred (i.e., Normalized) Income Tax Exp.

Federal Income Tax

State Income Tax

Total A+B

Separations Factor

Intrastate C x D

Federal

State

A

B

C

D

E

F

G

H

I

J

K

L

1.

Pension

132,186

36,908

169,094

0.7774

131,455

(122,619)

(34,036)

(25,200)

(25,200)

(25,200)

2.

SFAS 106

(29,474)

(8,166)

(37,640)

0.7774

(29,262)

46,155

12,968

(22,423)

7,438

4,009

11,447

11,447

3.

Total

102,712

28,742

131,454

102,194

(76,464)

(21,068)

(22,423)

(17,761)

4,009

(13,753)

(13,753)

Reference:

Note 1

Note 2

Note 3

Note 4

Note 5

Note 6

Note 7

Note 1:

Overland Exhibit Phase 2A: 402, Part 2, Attachment S9-1, p. 2.

Note 2:

Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p. 4.

Note 3:

Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p. 1.

Note 4:

Overland Exhibit Phase 2A: 404, Attachment 9-4, p. 1.

Note 5:

Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-4, p. 2.

Note 6:

Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p.1.

Note 7:

See supporting schedule in Appendix K.

YEAR 1998

($000)

------- Recorded FCC BASIS --------Deferred (i.e., Normalized) Income Tax Expense

Jurisdictional Adjustments

IEMR Adjustments

Total Intrastate E+F+G+H

Change in Deferred (i.e., Normalized) Income Tax Exp. Caused by Audit Adjustment

Deferred (i.e., Normalized) Income Tax Exp. Net of Audit Adjust.I+J

Increase (Decrease) to Net Operating Income by Removing Deferred (i.e., Normalized) Income Tax Exp.

Federal Income Tax

State Income Tax

TotalA+B

Separations Factor

Intrastate C x D

Federal

State

A

B

C

D

E

F

G

H

I

J

K

L

1.

Pension

29,578

8,195

37,773

0.7713

29,134

(57,025)

(15,800)

(43,691)

(43,691)

(43,691)

2.

SFAS 106

7,198

1,994

9,192

0.7713

7,090

2,357

653

(162,985)

(152,885)

156,016

3,130

3,130

3.

CHCF-B

100,506

27,847

128,353

0.7713

98,999

98,999

98,999

98,999

4.

Total

137,282

38,036

175,318

135,223

(54,668)

(15,147)

(162,985)

(97,577)

156,016

58,438

58,438

Reference:

Note 1

Note 2

Note 3

Note 4

Note 5

Note 6

Note 7

Note 1:

Overland Exhibit Phase 2A: 402, Part 2, Attachment S9-1, p. 3.

Note 2:

Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p. 6.

Note 3:

Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p. 1.

Note 4:

Overland Exhibit Phase 2A: 404, Attachment 9-4, p. 3.

Note 5:

Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-4, p. 4.

Note 6:

Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p.1.

Note 7:

See supporting schedule in Appendix K.

Appendix J

PACIFIC BELL

INCOME TAX FLOW-THROUGH CORRECTION

YEAR 1999

($000)

------- Recorded FCC BASIS --------Deferred (i.e., Normalized) Income Tax Expense

Jurisdictional Adjustments

Total Intrastate E+F+G+H

Change in Deferred (i.e., Normalized) Income Tax Exp. Caused by Audit Adjustment

Deferred (i.e., Normalized) Income Tax Exp. Net of Audit Adjust.I+J

Increase (Decrease) to Net Operating Income by Removing Deferred (i.e., Normalized) Income Tax Exp.

Federal Income Tax

State Income Tax

TotalA+B

Separations Factor

Intrastate C x D

Federal

State

IEMR Adjustments

A

B

C

D

E

F

G

H

I

J

K

L

1.

Pension

181,445

32,369

213,814

0.7725

165,178

(60,101)

(13,905)

91,171

91,171

91,171

2.

SFAS 106

(34,441)

(9,072)

(43,513)

0.7725

(33,615)

2,791

758

(30,066)

30,177

111

111

3.

CHCF-B

106,977

28,447

135,424

0.7725

104,619

104,619

104,619

104,619

4.

Total

253,981

51,744

305,725

236,182

(57,310)

(13,147)

0

165,724

30,177

195,901

195,901

Reference:

Note 1

Note 2

Note 3

Note 4

Note 5

Note 6

Note 7

Note 1:

Overland Exhibit Phase 2A: 402, Part 2, Attachment S9-1, p. 4.

Note 2:

Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p. 8.

Note 3:

Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p. 1.

Note 4:

Overland Exhibit Phase 2A: 404, Attachment 9-4, p. 5.

Note 5:

Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-4, p. 6.

Note 6:

Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p.1.

Note 7:

See supporting schedule in Appendix K.


Appendix J

INCOME TAX FLOW-THROUGH ADJUSTMENT
YEAR 1997
($000)
		------- Recorded FCC BASIS --------Deferred (i.e., Normalized) Income Tax Expense					Jurisdictional Adjustments		IEMR Adjustments	Total Intrastate E+F+G+H	Change in Deferred (i.e., Normalized) Income Tax Exp. Caused by Audit Adjustment	Deferred (i.e., Normalized) Income Tax Exp. Net of Audit Adjust.I+J	Increase (Decrease) to Net Operating Income by Removing Deferred (i.e., Normalized) Income Tax Exp.
		Federal Income Tax	State Income Tax	Total A+B	Separations Factor	Intrastate C x D	Federal	State	IEMR Adjustments	Total Intrastate E+F+G+H
		A	B	C	D	E	F	G	H	I	J	K	L
1.	Pension	132,186	36,908	169,094	0.7774	131,455	(122,619)	(34,036)		(25,200)		(25,200)	(25,200)
2.	SFAS 106	(29,474)	(8,166)	(37,640)	0.7774	(29,262)	46,155	12,968	(22,423)	7,438	4,009	11,447	11,447
3.	Total	102,712	28,742	131,454		102,194	(76,464)	(21,068)	(22,423)	(17,761)	4,009	(13,753)	(13,753)
	Reference:	Note 1	Note 2		Note 3		Note 4	Note 5	Note 6		Note 7

	Note 1:	Overland Exhibit Phase 2A: 402, Part 2, Attachment S9-1, p. 2.
	Note 2:	Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p. 4.
	Note 3:	Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p. 1.
	Note 4:	Overland Exhibit Phase 2A: 404, Attachment 9-4, p. 1.
	Note 5:	Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-4, p. 2.
	Note 6:	Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p.1.
	Note 7:	See supporting schedule in Appendix K.


YEAR 1998
($000)
		------- Recorded FCC BASIS --------Deferred (i.e., Normalized) Income Tax Expense					Jurisdictional Adjustments		IEMR Adjustments	Total Intrastate E+F+G+H	Change in Deferred (i.e., Normalized) Income Tax Exp. Caused by Audit Adjustment	Deferred (i.e., Normalized) Income Tax Exp. Net of Audit Adjust.I+J	Increase (Decrease) to Net Operating Income by Removing Deferred (i.e., Normalized) Income Tax Exp.
		Federal Income Tax	State Income Tax	TotalA+B	Separations Factor	Intrastate C x D	Federal	State	IEMR Adjustments	Total Intrastate E+F+G+H
		A	B	C	D	E	F	G	H	I	J	K	L
1.	Pension	29,578	8,195	37,773	0.7713	29,134	(57,025)	(15,800)		(43,691)		(43,691)	(43,691)
2.	SFAS 106	7,198	1,994	9,192	0.7713	7,090	2,357	653	(162,985)	(152,885)	156,016	3,130	3,130
3.	CHCF-B	100,506	27,847	128,353	0.7713	98,999				98,999		98,999	98,999
4.	Total	137,282	38,036	175,318		135,223	(54,668)	(15,147)	(162,985)	(97,577)	156,016	58,438	58,438
	Reference:	Note 1	Note 2		Note 3		Note 4	Note 5	Note 6		Note 7

	Note 1:	Overland Exhibit Phase 2A: 402, Part 2, Attachment S9-1, p. 3.
	Note 2:	Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p. 6.
	Note 3:	Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p. 1.
	Note 4:	Overland Exhibit Phase 2A: 404, Attachment 9-4, p. 3.
	Note 5:	Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-4, p. 4.
	Note 6:	Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p.1.
	Note 7:	See supporting schedule in Appendix K.




Appendix J

PACIFIC BELL
INCOME TAX FLOW-THROUGH CORRECTION
YEAR 1999
($000)
		------- Recorded FCC BASIS --------Deferred (i.e., Normalized) Income Tax Expense					Jurisdictional Adjustments			Total Intrastate E+F+G+H	Change in Deferred (i.e., Normalized) Income Tax Exp. Caused by Audit Adjustment	Deferred (i.e., Normalized) Income Tax Exp. Net of Audit Adjust.I+J	Increase (Decrease) to Net Operating Income by Removing Deferred (i.e., Normalized) Income Tax Exp.
		Federal Income Tax	State Income Tax	TotalA+B	Separations Factor	Intrastate C x D	Federal	State	IEMR Adjustments	Total Intrastate E+F+G+H
		A	B	C	D	E	F	G	H	I	J	K	L
1.	Pension	181,445	32,369	213,814	0.7725	165,178	(60,101)	(13,905)		91,171		91,171	91,171
2.	SFAS 106	(34,441)	(9,072)	(43,513)	0.7725	(33,615)	2,791	758		(30,066)	30,177	111	111
3.	CHCF-B	106,977	28,447	135,424	0.7725	104,619				104,619		104,619	104,619
4.	Total	253,981	51,744	305,725		236,182	(57,310)	(13,147)	0	165,724	30,177	195,901	195,901
	Reference:	Note 1	Note 2		Note 3		Note 4	Note 5	Note 6		Note 7

	Note 1:	Overland Exhibit Phase 2A: 402, Part 2, Attachment S9-1, p. 4.
	Note 2:	Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p. 8.
	Note 3:	Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p. 1.
	Note 4:	Overland Exhibit Phase 2A: 404, Attachment 9-4, p. 5.
	Note 5:	Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-4, p. 6.
	Note 6:	Overland Exhibit Phase 2A: 404, Vol. 2, Attachment 9-6, p.1.
	Note 7:	See supporting schedule in Appendix K.