48032 Federal Register / Vol. 79, No. 158 / Friday, August 15, 2014 / Rules and Regulations 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:/www.regulations.go

v#!docketDetail;D=FAA-2013-1068; or 

in person at the Docket Management 

Facility between 9 a.m. and 5 p.m., 

Monday through Friday, except Federal 

holidays. The AD docket contains this 

AD, the regulatory evaluation, any 

comments received, and other 

information. The street address for the 

Docket Operations office (telephone 

800–647–5527) is in the ADDRESSES

section. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by adding 

the following new airworthiness 

directive (AD): 

2014–15–20 Bombardier, Inc.: Amendment 

39–17923. Docket No. FAA–2013–1068; 

Directorate Identifier 2013–NM–196–AD. 

(a) Effective Date 

This AD becomes effective September 19, 

2014. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to Bombardier, Inc. Model 

DHC–8–400, –401, and –402 airplanes, 

certificated in any category, serial numbers 

4001 through 4446 inclusive. 

(d) Subject 

Air Transport Association (ATA) of 

America Code 36, Pneumatic. 

(e) Reason 

This AD was prompted by reports of failure 

of the high pressure shutoff valves (HPSOVs) 

causing the timer and monitor unit (TMU) to 

become inoperative since the HPSOV and the 

TMU are on the same circuit breaker. We are 

issuing this AD to prevent an inoperative 

TMU, which could result in the loss of the 

automatic de-icing mode, and lead to an 

increased workload for the flight crew and 

loss of control of the airplane. 

(f) Compliance 

You are responsible for having the actions 

required by this AD performed within the 

compliance times specified, unless the 

actions have already been done. 

(g) Segregation of the HPSOV Power Supply 

From the TMU 

Within 2,000 flight hours or 12 months 

after the effective date of this AD, whichever 

occurs first: Do a wiring modification to 

segregate the HPSOV power supply from the 

TMU, by incorporating Bombardier ModSum 

Package 4–110595, Revision C, dated May 14, 

2013, in accordance with the 

Accomplishment Instructions of Bombardier 

Service Bulletin 84–36–04, Revision B, dated 

January 2, 2014. 

(h) Credit for Previous Actions 

This paragraph provides credit for actions 

required by paragraph (g) of this AD, if those 

actions were performed before the effective 

date of this AD using Bombardier Service 

Bulletin 84–36–04, dated March 13, 2013; or 

Bombardier Service Bulletin 84–36–04, 

Revision A, dated April 17, 2013. 

(i) Other FAA AD Provisions 

The following provisions also apply to this 

AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, New York Aircraft 

Certification Office (ACO), ANE–170, FAA, 

has the authority to approve AMOCs for this 

AD, if requested using the procedures found 

in 14 CFR 39.19. In accordance with 14 CFR 

39.19, send your request to your principal 

inspector or local Flight Standards District 

Office, as appropriate. If sending information 

directly to the New York ACO, send it to 

ATTN: Program Manager, Continuing 

Operational Safety, FAA, New York ACO, 

1600 Stewart Avenue, Suite 410, Westbury, 

NY 11590; telephone 516–228–7300; fax 

516–794–5531. Before using any approved 

AMOC, notify your appropriate principal 

inspector, or lacking a principal inspector, 

the manager of the local flight standards 

district officecertificate holding district 

office. The AMOC approval letter must 

specifically reference this AD. 

(2) Contacting the Manufacturer: For any 

requirement in this AD to obtain corrective 

actions from a manufacturer, the action must 

be accomplished using a method approved 

by the Manager, New York ACO, ANE–170, 

Engine and Propeller Directorate, FAA; or 

Transport Canada Civil Aviation (TCCA); or 

Bombardier, Inc.’s TCCA Design Approval 

Organization (DAO). If approved by the DAO, 

the approval must include the DAOauthorized signature. 

(j) Related Information 

(1) Refer to Mandatory Continuing 

Airworthiness Information (MCAI) Canadian 

Airworthiness Directive CF–2013–27, dated 

September 25, 2013, for related information. 

This MCAI may be found in the AD docket 

on the Internet at http:/www.regulations.gov

#!documentDetail;D=FAA-2013-1068-0002. 

(2) Service information identified in this 

AD that is not incorporated by reference may 

be viewed at the addresses specified in 

paragraphs (k)(3) and (k)(4) of this AD. 

(k) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless this AD specifies otherwise. 

(i) Bombardier Service Bulletin 84–36–04, 

Revision B, dated January 2, 2014. 

(ii) Reserved. 

(3) For service information identified in 

this AD, contact Bombardier, Inc., Q-Series 

Technical Help Desk, 123 Garratt Boulevard, 

Toronto, Ontario M3K 1Y5, Canada; 

telephone 416–375–4000; fax 416–375–4539; 

email thd.qseries@aero.bombardier.com; 

Internet http:/www.bombardier.com. 

(4) You may view this service information 

at the FAA, Transport Airplane Directorate, 

1601 Lind Avenue SW., Renton, WA. For 

information on the availability of this 

material at the FAA, call 425–227–1221. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

202–741–6030, or go to: http:/ 

www.archives.govfederal-registercfribrlocations.html. 

Issued in Renton, Washington, on July 18, 

2014. 

John P. Piccola, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 2014–18306 Filed 8–14–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2014–0368; Airspace 

Docket No. 13–AGL–26] 

RIN 2120–AA66 

Amendment of Air Traffic Service 

(ATS) Routes in the Vicinity of Nabb, 

IN 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: This action modifies four 

VOR Federal airways (V–44, V–47, 

V–49, and V–51) in the vicinity of Nabb, 

IN. The Nabb, IN (ABB), VHF 

Omnidirectional Range (VOR)/Tactical 

Air Navigation (VORTAC) facility that 

provides navigation guidance for a 

portion of the airways listed was 

damaged beyond repair by a tornado in 

2012. 

DATES: Effective date 0901 UTC, 

November 13, 2014. The Director of the 


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Federal Register / Vol. 79, No. 158 / Friday, August 15, 2014 / Rules and Regulations 48033 

Federal Register approves this 

incorporation by reference action under 

1 CFR part 51, subject to the annual 

revision of FAA Order 7400.9 and 

publication of conforming amendments. 

ADDRESSES: FAA Order 7400.9X, 

Airspace Designations and Reporting 

Points, and subsequent amendments can 

be viewed online at http://www.faa.gov/ 

air_traffic/publications/. The Order is 

also available for inspection at the 

National Archives and Records 

Administration (NARA). For 

information on the availability of this 

material at NARA, call 202–741–6030, 

or go to http://www.archives.gov/

federal_register/code_of_federalregulations/ibr_locations.html. 

FAA Order 7400.9, Airspace 

Designations and Reporting Points, is 

published yearly and effective on 

September 15. For further information, 

you can contact the Airspace Policy and 

Regulations Group, Federal Aviation 

Administration, 800 Independence 

Avenue SW., Washington, DC 20591; 

telephone: 202–267–8783. 

FOR FURTHER INFORMATION CONTACT: 

Colby Abbott, Airspace Policy and 

Regulations Group, Office of Airspace 

Services, Federal Aviation 

Administration, 800 Independence 

Avenue SW., Washington, DC 20591; 

telephone: (202) 267–8783. 

SUPPLEMENTARY INFORMATION: 

History 

On March 2, 2012, the Nabb, IN 

(ABB), VHF Omni-directional Range 

(VOR)/Tactical Air Navigation 

(VORTAC) navigation aid (NAVAID) 

was damaged by a tornado. A Notice to 

Airmen (NOTAM) was published the 

following day documenting the ABB 

VORTAC being out of service and has 

remained published to present. The 

Louisville B Service Support Center, 

Eastern Service Area Technical 

Operations, evaluated the ABB 

VORTAC and determined that it was 

damaged beyond repair and the cost to 

replace it would be prohibitive. Based 

on the cost analysis to repair or replace 

the ABB VORTAC, and the availability 

of existing adjacent area navigation 

routes and VOR Federal airways in the 

area supported by the ABB VORTAC, 

the FAA made a determination to 

decommission the ABB VORTAC. 

As a result of the ABB VORTAC being 

decommissioned, the four VOR Federal 

airways V–44, V–47, V–49, and V–51 

require amendment actions. The FAA is 

modifying these airways by removing 

the route segments previously 

supported by the ABB VORTAC due to 

insufficient ground-based navigation aid 

coverage. The modifications will result 

in non-continuous route structures for 

these airways; however, there are other 

existing adjacent routes and airways 

available for aircraft flying in the area of 

the route segments being removed. 

Since this action merely involves 

editorial changes by removing reference 

to the NAVAID in the legal descriptions 

of the above VOR Federal Airways, and 

does not involve a change in the 

dimensions or operating requirements of 

that airspace, notice and public 

procedure under 5 U.S.C. 553(b) are 

unnecessary. 

The Rule 

The FAA is amending Title 14, Code 

of Federal Regulations (14 CFR) part 71 

to modify VOR Federal airways V–44, 

V–47, V–49, and V–51. The ABB 

VORTAC being damaged beyond repair 

in March 2012, NOTAMed out of 

service since then, and scheduled to be 

decommissioned has made this action 

necessary. The route modifications are 

outlined below. 

V–44: V–44 extends between the 

Columbia, MO, VOR and Albany, NY, 

VORTAC. This action removes the route 

segment between the Samsville, IL, VOR 

and the Falmouth, KY, VOR. 

V–47: V–47 extends between the Pine 

Bluff, AR, VOR and Waterville, OH, 

VOR. This action removes the route 

segment between the Pocket City, IN, 

VORTAC and the Cincinnati, OH, 

VORTAC. 

V–49: V–49 extends between the 

Vulcan, AL, VORTAC and Mystic, KY 

(MYS), VOR. This action terminates the 

airway at the Mystic, KY, VOR by 

removing the route segment between the 

MYS VOR and the ABB VORTAC. 

V–51: V–51 extends between Pahokee, 

FL, VORTAC and Chicago Heights, IL, 

VORTAC. This action removes the route 

segment between the Louisville, KY, 

VORTAC and the Shelbyville, IN, 

VORTAC. 

The navigation aid radials cited in the 

VOR Federal airway descriptions are 

stated relative to True north. 

Domestic VOR Federal airways are 

published in paragraph 6010(a) of FAA 

Order 7400.9X dated August 7, 2013, 

and effective September 15, 2013, which 

is incorporated by reference in 14 CFR 

71.1. The VOR Federal airways listed in 

this document would be subsequently 

published in the Order. 

The FAA has determined that this 

regulation only involves an established 

body of technical regulations for which 

frequent and routine amendments are 

necessary to keep them operationally 

current. Therefore, this regulation: (1) Is 

not a ‘‘significant regulatory action’’ 

under Executive Order 12866; (2) is not 

a ‘‘significant rule’’ under Department of 

Transportation (DOT) Regulatory 

Policies and Procedures (44 FR 11034; 

February 26, 1979); and (3) does not 

warrant preparation of a regulatory 

evaluation as the anticipated impact is 

so minimal. Since this is a routine 

matter that only affects air traffic 

procedures and air navigation, it is 

certified that this rule, when 

promulgated, does not have a significant 

economic impact on a substantial 

number of small entities under the 

criteria of the Regulatory Flexibility Act. 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

Subtitle I, Section 106 describes the 

authority of the FAA Administrator. 

Subtitle VII, Aviation Programs, 

describes in more detail the scope of the 

agency’s authority. 

This rulemaking is promulgated 

under the authority described in 

Subtitle VII, Part A, Subpart I, Section 

40103. Under that section, the FAA is 

charged with prescribing regulations to 

assign the use of the airspace necessary 

to ensure the safety of aircraft and the 

efficient use of airspace. This regulation 

is within the scope of that authority as 

it modifies the route structure as 

necessary to preserve the safe and 

efficient flow of air traffic within the 

NAS. 

Environmental Review 

The FAA has determined that this 

action qualifies for categorical exclusion 

under the National Environmental 

Policy Act in accordance with FAA 

Order 1050.1E, ‘‘Environmental 

Impacts: Policies and Procedures,’’ 

paragraph 311a. This airspace action is 

not expected to cause any potentially 

significant environmental impacts, and 

no extraordinary circumstances exist 

that warrant preparation of an 

environmental assessment. 

List of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

Adoption of the Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

amends 14 CFR part 71 as follows: 

PART 71—DESIGNATION OF CLASS A, 

B, C, D, AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

■ 1. The authority citation for part 71 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– 

1963 Comp., p. 389. 


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48034 Federal Register / Vol. 79, No. 158 / Friday, August 15, 2014 / Rules and Regulations 

§ 71.1 [Amended] 

■ 2. The incorporation by reference in 

14 CFR 71.1 of FAA Order 7400.9X, 

Airspace Designations and Reporting 

Points, dated August 7, 2013 and 

effective September 15, 2013, is 

amended as follows: 

Paragraph 6010(a) Domestic VOR Federal 

Airways 

* * * * * 

V–44 [Amended] 

From Columbia, MO; INT Columbia 131° 

and Foristell, MO, 262° radials; Foristell; 

Centralia, IL; to Samsville, IL. From 

Falmouth, KY; York, KY; Parkersburg, WV; 

Morgantown, WV; Martinsburg, WV; INT 

Martinsburg 094° and Baltimore, MD, 300° 

radials; Baltimore; INT Baltimore 122° and 

Sea Isle, NJ, 267° radials; Sea Isle; INT Sea 

Isle 040° and Deer Park, NY, 209° radials; 

Deer Park; INT Deer Park 041° and 

Bridgeport, CT, 133° radials; Bridgeport; INT 

Bridgeport 324° and Pawling, NY, 160° 

radials; Pawling; INT Pawling 342° and 

Albany, NY, 181° radials; to Albany. The 

airspace within R–4001B, R–5002A, R– 

5002B, and R–5002E is excluded when 

active. The airspace within V–139 and V–308 

airways is excluded. The airspace below 

2,000 feet MSL outside the United States is 

excluded. 

* * * * * 

V–47 [Amended] 

From Pine Bluff, AR; Gilmore, AR; 

Dyersburg, TN; Cunningham, KY; to Pocket 

City, IN. From Cincinnati, OH; Rosewood, 

OH; Flag City, OH; to Waterville, OH. 

* * * * * 

V–49 [Amended] 

From Vulcan, AL; Decatur, AL; Nashville, 

TN; Bowling Green, KY; to Mystic, KY. 

* * * * * 

V–51 [Amended] 

From Pahokee, FL; INT Pahokee 010°and 

Treasure, FL, 193° radials; Treasure; INT 

Treasure 330°and Ormond Beach, FL, 183° 

radials; Ormond Beach; Craig, FL; Alma, GA; 

Dublin, GA; Athens, GA; INT Athens 

340°and Harris, GA, 148° radials; Harris; 

Hinch Mountain, TN; Livingston, TN; to 

Louisville, KY. From Shelbyville, IN; INT 

Shelbyville 313° and Boiler, IN, 136° radials; 

Boiler; to Chicago Heights, IL. 

* * * * * 

Issued in Washington, DC, on August 7, 

2014. 

Gary A. Norek, 

Manager, Airspace Policy and Regulations 

Group. 

[FR Doc. 2014–19210 Filed 8–14–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9688] 

RIN 1545–BJ64 

Retail Inventory Method 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations relating to the retail 

inventory method of accounting. The 

regulations restate and clarify the 

computation of ending inventory values 

under the retail inventory method and 

provide a special rule for certain 

taxpayers that receive margin protection 

payments or vendor allowances that are 

required to reduce only cost of goods 

sold. The regulations affect taxpayers 

that are retailers and use a retail 

inventory method. 

DATES: Effective Date: These regulations 

are effective on August 15, 2014. 

Applicability Date: For date of 

applicability, see § 1.471–8(f). 

FOR FURTHER INFORMATION CONTACT: 

Christopher Call, (202) 317–7007 (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains final 

regulations that amend the Income Tax 

Regulations (26 CFR part 1) relating to 

the retail inventory method of 

accounting under § 1.471–8 of the 

Income Tax Regulations. On October 7, 

2011, a notice of proposed rulemaking 

(REG–125949–10) was published in the 

Federal Register (76 FR 62327). A 

public hearing was not requested or 

held. No comments were received 

during the comment period. Three 

comments were received after the end of 

the comment period and were 

considered, as discussed later in this 

preamble. The proposed regulations are 

adopted as amended by this Treasury 

decision. 

Summary of Comments and 

Explanation of Revisions 

Section 471 of the Internal Revenue 

Code provides that a taxpayer’s method 

of accounting for inventories must 

clearly reflect income. Section 1.471– 

2(c) provides that the bases of inventory 

valuation most commonly used and 

meeting the requirements of section 471 

are (1) cost and (2) cost or market, 

whichever is lower (LCM). Section 

1.471–3 provides rules for determining 

inventories at cost. Section 1.471–4 

provides rules for determining 

inventories at lower of cost or market. 

Section 1.471–8 of the regulations 

contains rules specific to retailers, 

allowing them to approximate cost or 

LCM of the goods in their ending 

inventory by using the retail inventory 

method. Under the retail inventory 

method, a taxpayer computes the value 

of ending inventory by multiplying a 

cost complement by the retail selling 

prices of the goods on hand at the end 

of the taxable year. The numerator of the 

cost complement is the value of 

beginning inventory plus the cost of 

purchases during the taxable year, and 

the denominator is the retail selling 

prices of beginning inventory plus the 

initial retail selling prices of purchases. 

For taxpayers using the retail inventory 

method to value inventories at cost 

(retail cost method), the denominator of 

the cost complement is adjusted for all 

permanent markups and markdowns. 

Taxpayers using the retail inventory 

method to value inventories at LCM 

(retail LCM method) generally do not 

make adjustments to the denominator 

for markdowns. 

The proposed regulations provided 

that a taxpayer using the retail LCM 

method may not reduce the numerator 

of the cost complement by the amount 

of an allowance, discount, or price 

rebate that is related to or intended to 

compensate for a permanent reduction 

in the taxpayer’s retail selling price of 

inventory, often called a margin 

protection payment or a markdown 

allowance. The proposed regulations 

also provided that a taxpayer using the 

retail inventory method (whether 

valuing inventories at LCM or at cost) 

may not reduce the numerator of the 

cost complement by the amount of a 

sales-based vendor allowance. 

Commenters suggested that taxpayers 

using the retail LCM method to value 

inventories should reduce the 

numerator of the cost complement for 

all vendor allowances and discounts, 

including margin protection payments 

and sales-based vendor allowances (but 

should not be required to reduce the 

denominator by the related price 

reduction), because all allowances and 

discounts reduce the cost of inventory 

and allow retailers to achieve their 

margin goals. The commenters asserted 

that if the numerator of the cost 

complement is not reduced for margin 

protection payments and sales-based 

vendor allowances, taxpayers’ income 

will not be clearly reflected, the 

economics of the underlying business 

transaction will be ignored, and small 

retailers would be adversely affected. 

The commenters suggested that small 


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