61294 Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Notices 

Advisor announces two separate public 

meetings of the Human Studies Review 

Board (HSRB) to advise the Agency on 

the ethical and scientific review of 

research involving human subjects. 

DATES: A virtual public meeting will be 

held on Tuesday, January 23, 2018 and 

Wednesday, January 24, 2018, from 1:00 

p.m. to approximately 5:30 p.m. Eastern 

Time on both dates. A separate, 

subsequent teleconference meeting is 

planned for Thursday, March 15, 2018, 

from 2:00 p.m. to approximately 3:30 

p.m. Eastern Time for the HSRB to 

finalize its Final Report of the January 

23 and 24, 2018 meeting and review 

other possible topics. 

ADDRESSES: Both of these meetings will 

be conducted entirely by telephone and 

on the internet using Adobe Connect. 

For detailed access information visit the 

HSRB website: http://www2.epa.gov/ 

osa/human-studies-review-board. 

FOR FURTHER INFORMATION CONTACT: Any 

member of the public who wishes to 

receive further information should 

contact the HSRB Designated Federal 

Official (DFO), Thomas O’Farrell on 

telephone number (202) 564–8451; fax 

number: (202) 564–2070; email address: 

ofarrell.thomas@epa.gov; or mailing 

address: Environmental Protection 

Agency, Office of the Science Advisor, 

Mail Code 8105R, 1200 Pennsylvania 

Avenue NW, Washington, DC 20460. 

SUPPLEMENTARY INFORMATION: 

Meeting access: These meetings will 

be open to the public. The full Agenda 

and meeting materials will be available 

at the HSRB website: http://

www2.epa.gov/osa/human-studiesreview-board. For questions on 

document availability, or if you do not 

have access to the internet, consult with 

the DFO, Thomas O’Farrell, listed under 

FOR FURTHER INFORMATION CONTACT. 

Special accommodations. For 

information on access or services for 

individuals with disabilities, or to 

request accommodation of a disability, 

please contact the DFO listed under FOR

FURTHER INFORMATION CONTACT at least 

10 days prior to the meeting to give EPA 

as much time as possible to process 

your request. 

How may I participate in this meeting? 

The HSRB encourages the public’s 

input. You may participate in these 

meetings by following the instructions 

in this section. 

1. Oral comments. To pre-register to 

make oral comments, please contact the 

DFO, Thomas O’Farrell, listed under 

FOR FURTHER INFORMATION CONTACT. 

Requests to present oral comments 

during either meeting will be accepted 

up to Noon Eastern Time on Tuesday, 

January 16, 2018, for the January 23 and 

24, 2018 meeting and up to Noon 

Eastern Time on Tuesday, March 8, 

2018 for the March 15, 2018 meeting. To 

the extent that time permits, interested 

persons who have not pre-registered 

may be permitted by the HSRB Chair to 

present oral comments during either 

meeting at the designated time on the 

agenda. Oral comments before the HSRB 

are generally limited to five minutes per 

individual or organization. If additional 

time is available, further public 

comments may be possible. 

2. Written comments. Submit your 

written comments prior to the meetings. 

For the Board to have the best 

opportunity to review and consider your 

comments as it deliberates, you should 

submit your comments by Noon Eastern 

Time on Tuesday, January 16, 2018, for 

the January 23 and 24, 2018 meeting 

and up to Noon Eastern Time on 

Tuesday, March 8, 2018 for the March 

15, 2018 meeting. If you submit 

comments after these dates, those 

comments will be provided to the HSRB 

members, but you should recognize that 

the HSRB members may not have 

adequate time to consider your 

comments prior to their discussion. You 

should submit your comments to the 

DFO, Thomas O’Farrell listed under FOR

FURTHER INFORMATION CONTACT. There is 

no limit on the length of written 

comments for consideration by the 

HSRB. 

Background 

The HSRB is a Federal advisory 

committee operating in accordance with 

the Federal Advisory Committee Act 5 

U.S.C. App. 2 9. The HSRB provides 

advice, information, and 

recommendations on issues related to 

scientific and ethical aspects of thirdparty human subjects research that are 

submitted to the Office of Pesticide 

Programs (OPP) to be used for regulatory 

purposes. 

Topic for discussion. On January 23 

and 24, 2018, EPA’s Human Studies 

Review Board will consider two topics: 

(1) A completed study and monograph 

report titled ‘‘Agricultural Handler 

Exposure during Open Pour Loading of 

Granules’’ by the Agricultural Handlers 

Exposure Task Force, and (2) a study 

protocol titled ‘‘Laboratory Evaluation 

of Bite Protection From RepellentImpregnated Fabrics’’ by Pinebelt 

Industries. 

The Agenda and meeting materials for 

this topic will be available in advance 

of the meeting at http://www2.epa.gov/ 

osa/human-studies-review-board. 

On March 15, 2018, the HSRB will 

review and finalize their draft Final 

Report from the January 23 and 24, 2018 

meeting, in addition to other topics that 

may come before the Board. The HSRB 

may also discuss planning for future 

HSRB meetings. The agenda and the 

draft report will be available prior to the 

meeting at http://www2.epa.gov/osa/ 

human-studies-review-board. 

Meeting minutes and final reports. 

Minutes of these meetings, summarizing 

the matters discussed and 

recommendations made by the HSRB, 

will be released within 90 calendar days 

of the meeting. These minutes will be 

available at http://www2.epa.gov/osa/ 

human-studies-review-board. In 

addition, information regarding the 

HSRB’s Final Report, will be found at 

http://www2.epa.gov/osa/humanstudies-review-board or from Thomas 

O’Farrell listed under FOR FURTHER

INFORMATION CONTACT. 

Dated: December 14, 2017. 

Jennifer Orme-Zavaleta, 

EPA Science Advisor. 

[FR Doc. 2017–27951 Filed 12–26–17; 8:45 am] 

BILLING CODE 6560–50–P 

FEDERAL RESERVE SYSTEM 

Proposed Agency Information 

Collection Activities; Comment 

Request 

AGENCY: Board of Governors of the 

Federal Reserve System (Board). 

ACTION: Notice and request for comment. 

SUMMARY: In accordance with the 

requirements of the Paperwork 

Reduction Act (PRA) of 1995, the Board, 

the Federal Deposit Insurance 

Corporation (FDIC), and the Office of 

the Comptroller of the Currency (OCC) 

(collectively, the ‘‘agencies’’) may not 

conduct or sponsor, and the respondent 

is not required to respond to, an 

information collection unless it displays 

a currently valid Office of Management 

and Budget (OMB) control number. The 

Federal Financial Institutions 

Examination Council (FFIEC), of which 

the agencies are members, has approved 

the Board’s publication for public 

comment of a proposal to extend, with 

revision, the Report of Assets and 

Liabilities of U.S. Branches and 

Agencies of Foreign Banks (FFIEC 002) 

and the Report of Assets and Liabilities 

of a Non-U.S. Branch that is Managed or 

Controlled by a U.S. Branch or Agency 

of a Foreign (Non-U.S.) Bank (FFIEC 

002S), which are currently approved 

collections of information. The Board is 

publishing this proposal on behalf of the 

agencies. 

The proposed revisions to these 

reports would align with corresponding 


daltland on DSKBBV9HB2PROD with NOTICES
Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Notices 61295 

changes made to the Consolidated 

Reports of Condition and Income (FFIEC 

031, FFIEC 041, and FFIEC 051). The 

Consolidated Reports of Condition and 

Income are commonly referred to as the 

Call Report. The proposed revisions to 

the FFIEC 002 and the FFIEC 002S 

would delete or consolidate certain 

items, establish certain reporting 

thresholds, account for changes in the 

accounting for equity investments, and 

make instructional clarifications 

consistent with those previously made 

to or currently proposed for the Call 

Report instructions. The proposed 

revisions would result in an overall 

reduction in burden and would take 

effect as of the June 30, 2018, report 

date. In determining whether to approve 

the proposed collection of information, 

the agencies will consider all comments 

received. As required by the PRA, the 

Board would then publish a second 

Federal Register notice for a 30-day 

comment period and submit the final 

FFIEC 002 and FFIEC 002S to OMB for 

review and approval. 

DATES: Comments must be submitted on 

or before February 26, 2018. 

ADDRESSES: Interested parties are 

invited to submit written comments to 

the agency listed below. All comments, 

which should refer to the OMB control 

number, will be shared among the 

agencies. 

You may submit comments, which 

should refer to ‘‘FFIEC 002 and FFIEC 

002S,’’ by any of the following methods: 

• Agency website: http://

www.federalreserve.gov. Follow the 

instructions for submitting comments at: 

http://www.federalreserve.gov/general

info/foia/ProposedRegs.cfm. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Email: regs.comments@

federalreserve.gov. Include the reporting 

form numbers in the subject line of the 

message. 

• Fax: (202) 452–3819 or (202) 452– 

3102. 

• Mail: Ann E. Misback, Secretary, 

Board of Governors of the Federal 

Reserve System, 20th Street and 

Constitution Avenue NW, Washington, 

DC 20551. 

All public comments are available 

from the Board’s website at www.federal

reserve.gov/generalinfo/foia/Proposed

Regs.cfm as submitted, unless modified 

for technical reasons. Accordingly, your 

comments will not be edited to remove 

any identifying or contact information. 

Public comments may also be viewed 

electronically or in paper form in Room 

3515, 1801 K Street NW, (between 18th 

and 19th Streets NW), Washington, DC 

20006, between 9:00 a.m. and 5:00 p.m. 

on weekdays. 

Additionally, commenters may send a 

copy of their comments to the OMB 

desk officer for the agencies by mail to 

the Office of Information and Regulatory 

Affairs, U.S. Office of Management and 

Budget, New Executive Office Building, 

Room 10235, 725 17th Street NW, 

Washington, DC 20503; by fax to (202) 

395–6974; or by email to oira_

submission@omb.eop.gov. 

FOR FURTHER INFORMATION CONTACT: For 

further information about the proposed 

revisions to the FFIEC 002 and FFIEC 

002S discussed in this notice, please 

contact the agency staff member whose 

name appears below. In addition, copies 

of the FFIEC 002 and FFIEC 002S forms 

can be obtained at the FFIEC’s website 

(https://www.ffiec.gov/ffiec_report_

forms.htm). 

Nuha Elmaghrabi, Federal Reserve 

Board Clearance Officer, (202) 452– 

3884, Office of the Chief Data Officer, 

Board of Governors of the Federal 

Reserve System, 20th and C Streets NW, 

Washington, DC 20551. 

Telecommunications Device for the Deaf 

(TDD) users may call (202) 263–4869. 

SUPPLEMENTARY INFORMATION: The Board 

is proposing to extend for three years, 

with revision, the FFIEC 002 and FFIEC 

002S. 

Report Titles: Report of Assets and 

Liabilities of U.S. Branches and 

Agencies of Foreign Banks; Report of 

Assets and Liabilities of a Non-U.S. 

Branch that is Managed or Controlled by 

a U.S. Branch or Agency of a Foreign 

(Non-U.S.) Bank. 

Form Numbers: FFIEC 002; FFIEC 

002S. 

OMB Control Number: 7100–0032. 

Frequency of Response: Quarterly. 

Affected Public: Business or other forprofit. 

Respondents: All state-chartered or 

federally-licensed U.S. branches and 

agencies of foreign banking 

organizations, and all non-U.S. branches 

managed or controlled by a U.S. branch 

or agency of a foreign banking 

organization. 

Estimated Number of Respondents: 

FFIEC 002—209; FFIEC 002S—38. 

Estimated Average Burden per 

Response: FFIEC 002—23.87 hours; 

FFIEC 002S—6.0 hours. 

Estimated Total Annual Burden: 

FFEIC 002—19,955 hours; FFIEC 002S— 

912 hours. 

Type of Review: Revision of currently 

approved collections. 

General Description of Reports 

These information collections are 

mandatory (12 U.S.C. 3105(c)(2), 

1817(a)(1) and (3), and 3102(b)). Except 

for select sensitive items, the FFIEC 002 

is not given confidential treatment; the 

FFIEC 002S is given confidential 

treatment (5 U.S.C. 552(b)(4) and (8)). 

Abstract 

On a quarterly basis, all U.S. branches 

and agencies of foreign banks are 

required to file the FFIEC 002, which is 

a detailed report of condition with a 

variety of supporting schedules. This 

information is used to fulfill the 

supervisory and regulatory requirements 

of the International Banking Act of 

1978. The data are also used to augment 

the bank credit, loan, and deposit 

information needed for monetary policy 

and other public policy purposes. The 

FFIEC 002S is a supplement to the 

FFIEC 002 that collects information on 

assets and liabilities of any non-U.S. 

branch that is managed or controlled by 

a U.S. branch or agency of the foreign 

bank. A non-U.S. branch is managed or 

controlled by a U.S. branch or agency if 

a majority of the responsibility for 

business decisions, including but not 

limited to decisions with regard to 

lending or asset management or funding 

or liability management, or the 

responsibility for recordkeeping in 

respect of assets or liabilities for that 

foreign branch resides at the U.S. branch 

or agency. A separate FFIEC 002S must 

be completed for each managed or 

controlled non-U.S. branch. The FFIEC 

002S must be filed quarterly along with 

the U.S. branch or agency’s FFIEC 002. 

The data from both reports are used for 

(1) monitoring deposit and credit 

transactions of U.S. residents; (2) 

monitoring the impact of policy 

changes; (3) analyzing structural issues 

concerning foreign bank activity in U.S. 

markets; (4) understanding flows of 

banking funds and indebtedness of 

developing countries in connection with 

data collected by the International 

Monetary Fund and the Bank for 

International Settlements that are used 

in economic analysis; and (5) assisting 

in the supervision of U.S. offices of 

foreign banks. The Federal Reserve 

System collects and processes these 

reports on behalf of all three agencies. 

Current Actions 

I. Introduction 

The proposed revisions partially stem 

from a formal initiative launched by the 

FFIEC in December 2014 to identify 

potential opportunities to reduce 

burden associated with Call Report 

requirements for community banks. The 

FFIEC’s formal initiative included 

surveys of agency Call Report data 

users, which have served as the 


daltland on DSKBBV9HB2PROD with NOTICES
61296 Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Notices 

1See 80 FR 56539 (September 18, 2015), 81 FR 

45357 (July 13, 2016), 81 FR 54190 (August 15, 

2016), 82 FR 2444 (January 9, 2017), 82 FR 29147 

(June 27, 2017), and 82 FR 51908 (November 8, 

2017) for information on other actions taken under 

this initiative. 

foundation for the proposed burdenreducing revisions.1 As part of these 

surveys, users were asked to fully 

explain the need for each Call Report 

data item they deemed essential, how 

the data item is used, the frequency 

with which it is needed, and the 

population of institutions from which it 

is needed. Based on the results of the 

surveys, the agencies identified Call 

Report data items that are no longer 

needed, are needed on a less frequent 

basis, or are needed only above certain 

reporting thresholds, and have proposed 

or finalized the elimination, less 

frequent collection, or creation of new 

or upwardly revised reporting 

thresholds for these data items in the 

Call Report. In an effort to maintain 

consistency between the FFIEC 002, the 

FFIEC 002S, and the Call Report, the 

burden-reducing changes identified for 

the Call Report have been incorporated 

into this proposal where applicable. In 

addition, the proposed revisions ensure 

the reporting of data on equity 

investments in several FFIEC 002 

schedules is consistent with changes in 

the accounting standards applicable to 

such investments. All of the revisions in 

this proposal have been implemented or 

proposed to be implemented in the Call 

Report. 

II. General Discussion and Detail of 

Specific Proposed Revisions 

The proposed revisions are meant to 

align with revisions either implemented 

or proposed to be implemented in the 

Call Report. Below is a list of the 

specific proposed revisions to the FFIEC 

002 and FFIEC 002S. The proposed 

revisions are segmented by schedule 

except for the revisions relating to the 

accounting for equity securities, which 

can be found following the section 

regarding proposed revisions to FFIEC 

002 Schedule S, Servicing, 

Securitization, and Asset Sale 

Activities. Other than proposed 

revisions to the Report of Assets and 

Liabilities in the next paragraph, which 

pertain to both the FFIEC 002 and the 

FFIEC 002S, all other proposed 

revisions pertain only to the FFIEC 002. 

Schedule RAL (FFIEC 002) and Report 

of Assets and Liabilities (FFIEC 002S) 

In an effort to improve clarity, 

conformity with current accounting 

terminology, and internal consistency 

across schedules, the agencies propose 

to revise the caption in the FFIEC 002 

and FFIEC 002S forms and instructions 

from ‘‘loans and leases, net of unearned 

income’’ to ‘‘loans and leases held for 

investment and held for sale.’’ These 

two captions are intended to represent 

the same reported amounts. 

Accordingly, the agencies will replace 

the former caption with the latter 

caption in affected data items and 

related instructions across all applicable 

schedules. 

Each year in the March FFIEC 002, 

each institution indicates in Schedule 

RAL, Assets and Liabilities, 

Memorandum item 17, the most 

comprehensive level of auditing work 

performed for the branch or agency by, 

or on behalf of, the parent organization 

during the preceding calendar year. In 

completing Memorandum item 17, each 

institution selects from seven statements 

describing a range of levels of auditing 

work the one statement that best 

describes the level of auditing work 

performed for it. Certain statements 

from which an institution must choose 

do not reflect current auditing practices 

performed in accordance with 

applicable standards and procedures 

promulgated by the U.S. auditing 

standard setters, namely the Public 

Company Accounting Oversight Board 

(PCAOB) and the Auditing Standards 

Board (ASB) of the American Institute of 

Certified Public Accountants. The 

PCAOB establishes auditing and related 

professional practice standards used in 

the performance and reporting of audits 

of the financial statements and the 

internal control over financial reporting 

(ICFR) of public companies. The ASB 

establishes auditing and quality control 

standards applicable to the performance 

and issuance of audit reports for entities 

that are not public companies, e.g. 

private companies. 

The PCAOB’s Auditing Standard No. 

5 (AS 5), An Audit of Internal Control 

Over Financial Reporting That Is 

Integrated with An Audit of Financial 

Statements, became effective for fiscal 

years ending on or after November 15, 

2007, and provides guidance regarding 

the integration of audits of ICFR with 

audits of financial statements for public 

companies. Those public companies not 

required to undergo an integrated audit 

must have an audit of their financial 

statements. 

The ASB has separately provided 

similar guidance in Statement on 

Auditing Standards Number 130 (SAS 

130), An Audit of Internal Control Over 

Financial Reporting That Is Integrated 

With an Audit of Financial Statements, 

which became effective for integrated 

audits for periods ending on or after 

December 15, 2016. Consistent with the 

PCAOB, the ASB states in SAS 130 that 

‘‘[a]n audit of ICFR is required to be 

integrated with an audit of financial 

statements.’’ Unless a private company 

is required to or elects to have an 

integrated audit of its financial 

statements and ICFR, the private 

company may be required to or can 

choose to have an external auditor 

perform an audit of its financial 

statements. 

The existing wording of statements 1 

and 2 of Schedule RAL, Memorandum 

item 17, reads as follows: 

1 = ‘‘Independent annual audit of the 

branch or agency conducted in 

accordance with U.S. generally 

accepted auditing standards by a 

certified public accounting firm’’ 

2 = ‘‘Independent annual audit of the 

branch or agency conducted in 

accordance with home-country 

auditing standards by an independent 

accounting firm.’’ 

Because these statements no longer 

fully and properly describe the types of 

external auditing services performed for 

institutions under current professional 

standards and to enhance the 

information institutions provide the 

agencies annually about the level of 

auditing external work performed for 

them, the agencies are proposing to 

replace existing statements 1 and 2 with 

new statements 1a and 1b and revised 

statement 2. These statements would 

read as follows: 

1a = ‘‘An integrated audit of the 

branch or agency and its internal control 

over financial reporting conducted in 

accordance with the auditing standards 

of the American Institute of Certified 

Public Accountants (AICPA) or the 

Public Company Accounting Oversight 

Board (PCAOB) by an independent 

public accountant.’’ 

1b = ‘‘An audit of the branch or 

agency conducted in accordance with 

the auditing standards of the AICPA or 

the PCAOB by an independent public 

accountant.’’ 

2 = ‘‘An audit of the branch or agency 

conducted in accordance with homecountry auditing standards by an 

independent public accountant.’’ 

Further, the agencies also propose to 

revise the caption to Memorandum item 

17 to explicitly state that the work is 

performed by independent external 

auditors and to remove the reference to 

work performed on behalf of the parent 

organization. 

The agencies also propose to 

consolidate the detail on the fair value 

and the unpaid principal balance of 

loans held for trading collected in 

Schedule RAL. For loans secured by 1– 

4 family residential properties, 

breakouts for revolving, open-end loans 


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Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Notices 61297 

secured by 1–4 family residential 

properties and extended under lines of 

credit, as well as closed-end loans 

secured by 1–4 family residential 

properties, would be consolidated into a 

single item. In addition, construction, 

land development, and other land loans; 

loans secured by farmland; loans 

secured by multifamily (5 or more) 

residential properties; and loans secured 

by nonfarm nonresidential properties 

would be consolidated into a single 

item. Specifically, existing 

Memorandum items 5.a.(3)(a) and 

5.a.(3)(b) would be consolidated into 

new Memorandum item 5.a.(1), while 

existing Memorandum items 5.a.(1), 

5.a.(2), 5.a.(4), and 5.a.(5) would be 

consolidated into new Memorandum 

item 5.a.(2). Existing Memorandum 

items 6.a.(3)(a) and 6.a.(3)(b) would be 

consolidated into new Memorandum 

item 6.a.(1), while existing 

Memorandum items 6.a.(1), 6.a.(2), 

6.a.(4), and 6.a.(5) would be 

consolidated into new Memorandum 

item 6.a.(2). The agencies no longer 

need this current level of detail on loans 

held for trading in the FFIEC 002. 

Schedule A 

On Schedule A, Cash and Balances 

Due from Depository Institutions, the 

agencies propose to consolidate the 

reporting of an institution’s balances 

due from depository institutions in the 

U.S., which are currently reported in 

items 3.a for balances due from U.S. 

branches and agencies of foreign banks 

(including their international banking 

facilities (IBFs)) and 3.b for balances 

due from other depository institutions 

in the U.S. (including their IBFs), into 

a single item 3. In addition, the agencies 

propose to consolidate the reporting of 

an institution’s balances due from 

foreign branches of U.S. banks (item 

4.a), balances due from banks in the 

reporting institution’s home country 

and its home country central bank (item 

4.b), and balances due from all other 

banks in foreign countries and foreign 

central banks (item 4.c), into a single 

item 4, Balances due from banks in 

foreign countries and foreign central 

banks. The agencies no longer need this 

current level of detail for these balances 

in the FFIEC 002. 

Schedule C—Part I 

At present, institutions that have 

elected to measure loans held for 

investment or held for sale at fair value 

under a fair value option are required to 

report the fair value and unpaid 

principal balance of such loans in 

Memorandum items 5 and 6, 

respectively, of Schedule C, Part I, 

Loans and Leases. Because Schedule C, 

Part I, must be completed by all 

institutions, Memorandum items 5 and 

6 also must be completed by all 

institutions although only a nominal 

number of institutions have disclosed 

reportable amounts for any of the 

categories of fair value option loans 

reported in the subitems of these two 

Memorandum items. Accordingly, the 

agencies are proposing to move 

Memorandum items 5 and 6 on the fair 

value and unpaid principal balance of 

fair value option loans from Schedule C, 

Part I, to Schedule Q, Financial Assets 

and Liabilities Measured at Fair Value 

on a Recurring Basis, and to designate 

them as Memorandum items 3 and 4, 

respectively. 

The agencies also propose to 

consolidate the detail on loans held for 

investment or held for sale measured at 

fair value and the unpaid principal 

balance of such loans that would be 

moved to Schedule Q. Breakouts for 

revolving, open-end loans secured by 1– 

4 family residential properties and 

extended under lines of credit, as well 

as closed-end loans secured by 1–4 

family residential properties, would be 

consolidated into a single item for loans 

secured by 1–4 family residential 

properties. In addition, construction, 

land development, and other land loans; 

loans secured by farmland; loans 

secured by multifamily (5 or more) 

residential properties; and loans secured 

by nonfarm nonresidential properties 

would be consolidated into a single item 

for loans secured by real estate other 

than 1–4 family residential properties. 

Specifically, existing Memorandum 

items 5.a.(3)(a) and 5.a.(3)(b) would be 

consolidated into new Memorandum 

item 5.a.(1), while existing 

Memorandum items 5.a.(1), 5.a.(2), 

5.a.(4), and 5.a.(5) would be 

consolidated into new Memorandum 

item 5.a.(2). Existing Memorandum 

items 6.a.(3)(a) and 6.a.(3)(b) would be 

consolidated into new Memorandum 

item 6.a.(1), while existing 

Memorandum items 6.a.(1), 6.a.(2), 

6.a.(4), and 6.a.(5) would be 

consolidated into new Memorandum 

item 6.a.(2). The agencies no longer 

need this current level of detail in the 

FFIEC 002. 

Schedule C—Part II 

The agencies propose to remove items 

1.a and 1.b on Schedule C, Part II, Loans 

to Small Businesses and Small Farms. 

Item 1.a requires FDIC-insured branches 

to indicate on an annual basis whether 

all or substantially all of the 

institution’s dollar volume of reported 

‘‘Commercial and industrial loans to 

U.S. addressees’’ consist of loans with 

original amounts of $100,000 or less. If 

a branch reports ‘‘Yes’’ in item 1.a, then 

it must provide the number of 

‘‘Commercial and industrial loans to 

U.S. addressees’’ outstanding in item 

1.b. This change aligns this schedule 

with revisions made to the 

corresponding schedule in the FFIEC 

031 Call Report. 

Schedule Q 

The agencies propose to modify the 

reporting criteria for Schedule Q, 

Financial Assets and Liabilities 

Measured at Fair Value on a Recurring 

Basis, by applying only an activity 

threshold and not an asset-size 

threshold, which currently is $500 

million. As proposed, Schedule Q is to 

be completed by branches and agencies 

that (1) have elected to report financial 

instruments or servicing assets and 

liabilities at fair value under a fair value 

option with changes in fair value 

recognized in earnings, or (2) reported 

total trading assets of $10 million or 

more in any of the four preceding 

calendar quarters. Institutions that do 

not meet either of these criteria would 

no longer need to complete this 

schedule, regardless of asset size. The 

agencies believe the activity thresholds 

are more appropriate than the existing 

simple asset-size threshold for 

determining which institutions must 

complete this schedule. 

The agencies also propose to raise the 

dollar portion of the threshold from 

$25,000 to $100,000 for itemizing and 

describing the components of ‘‘All other 

assets’’ and ‘‘All other liabilities,’’ 

which are reported in Memorandum 

items 1 and 2, respectively. The 

percentage portion of the existing 

thresholds would not be changed. Based 

on a preliminary evaluation of the 

existing reporting thresholds, the 

agencies have concluded that the dollar 

portion of the thresholds that currently 

apply to these items can be increased to 

provide a reduction in reporting burden 

without a loss of data that would be 

necessary for supervisory or other 

public policy purposes. 

Schedule S 

The agencies propose the following 

revisions to Schedule S, Servicing, 

Securitization, and Asset Sale 

Activities, as they no longer need the 

current level of detail on securitization 

and asset sale activities in the FFIEC 

002: 

(1) Consolidate the maximum amount 

of credit exposures arising from 

recourse or other seller-provided credit 

enhancements in the forms of retained 

interest-only strips, subordinated 

securities and other residual interests, 

and standby letters of credit and other 


daltland on DSKBBV9HB2PROD with NOTICES
61298 Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Notices 

2No revisions to the FFIEC 002S regarding equity 

securities are being proposed. 

enhancements reported in items 2.a, 2.b, 

and 2.c, respectively, into a single new 

item 2. 

(2) Create a reporting threshold of 

$100 billion or more in total assets for 

reporting in item 3, which is for 

reporting unused commitments to 

provide liquidity to structures reported 

in item 1 involving assets sold and 

securitized by the reporting institution 

with servicing retained or with recourse 

or other seller-provided credit 

enhancements. 

(3) Consolidate ownership (or seller’s) 

interests carried as securities and loans, 

which are reported in items 6.a and 6.b, 

respectively, into a single new item 6. 

The agencies also propose to create a 

reporting threshold of $10 billion or 

more in total assets for reporting this 

new combined item 6. 

(4) Remove items 7.a and 7.b, which 

contain loan amounts included in 

ownership (or seller’s) interests carried 

as securities that are 30–89 days past 

due and 90 days or more past due, 

respectively. 

(5) Consolidate columns B and C of 

item 9, which contain the maximum 

amount of credit exposure arising from 

credit enhancements provided by the 

reporting institution to other 

institutions’ securitization structures, 

into existing column G. The activities 

covered in columns B and C pertain to 

home equity lines and credit card 

receivables, respectively. The amounts 

previously reported in columns B and C 

would be reported in column G, ‘‘All 

other loans, all leases, and all other 

assets.’’ 

(6) Create a reporting threshold of $10 

billion or more in total assets for 

reporting unused commitments to 

provide liquidity to other institutions’ 

securitization structures in item 10. The 

agencies also propose to consolidate 

columns B and C of item 10 into 

existing column G. The activities 

covered in columns B and C pertain to 

home equity lines and credit card 

receivables, respectively. The amounts 

previously reported in columns B and C 

by institutions with $10 billion or more 

in total assets would be included in 

column G, ‘‘All other loans, all leases, 

and all other assets.’’ 

(7) Consolidate columns B through F 

of item 11, which contain assets sold 

with recourse or other seller-provided 

credit enhancements and not 

securitized, into existing column G. The 

activities covered in columns B through 

F pertain to home equity lines, credit 

card receivables, auto loans, other 

consumer loans, and commercial and 

industrial loans, respectively. The 

amounts previously reported in 

columns B through F would be included 

in column G, ‘‘All other loans, all leases, 

and all other assets.’’ 

(8) Consolidate columns B through F 

of item 12, which contain the maximum 

amount of credit exposure arising from 

recourse or other seller-provided credit 

enhancements on assets sold with 

recourse or other seller-provided credit 

enhancements and not securitized, into 

existing column G. The activities 

covered in columns B through F pertain 

to home equity lines, credit card 

receivables, auto loans, other consumer 

loans, and commercial and industrial 

loans, respectively. The amounts 

previously reported in columns B 

through F would be included in column 

G, ‘‘All other loans, all leases, and all 

other assets.’’ 

(9) Create a reporting threshold of $10 

billion or more in total assets for 

reporting detail on asset-backed 

commercial paper conduits in 

Memorandum item 1. Institutions report 

the maximum amount of credit 

exposure arising from credit 

enhancements provided to asset-backed 

commercial paper conduits sponsored 

by the reporting institution or related 

institutions, and by unrelated 

institutions, in Memorandum items 

1.a.(1) and 1.a.(2), respectively. 

Institutions report unused commitments 

to provide liquidity to asset-backed 

commercial paper conduits sponsored 

by the reporting institution or related 

institutions, and by unrelated 

institutions, in Memorandum items 

1.b.(1) and M.1.b.(2), respectively. 

Proposed Revisions to Address Changes 

in Accounting for Equity Investments 

In January 2016, the Financial 

Accounting Standards Board (FASB) 

issued Accounting Standards Update 

(ASU) No. 2016–01, ‘‘Recognition and 

Measurement of Financial Assets and 

Financial Liabilities.’’ In its summary of 

this ASU, the FASB described how one 

of the main provisions of the ASU 

differs from current U.S. generally 

accepted accounting principles (GAAP) 

as follows: 

The amendments in this Update supersede 

the guidance to classify equity securities with 

readily determinable fair values into different 

categories (that is, trading or available-forsale) and require equity securities (including 

other ownership interests, such as 

partnerships, unincorporated joint ventures, 

and limited liability companies) to be 

measured at fair value with changes in the 

fair value recognized through net income. An 

entity’s equity investments that are 

accounted for under the equity method of 

accounting or result in consolidation of an 

investee are not included within the scope of 

this Update. 

The FASB further stated in the 

summary that ‘‘an entity may choose to 

measure equity investments that do not 

have readily determinable fair values at 

cost minus impairment, if any, plus or 

minus changes resulting from 

observable price changes in orderly 

transactions for the identical or a similar 

investment of the same issuer.’’ 

The instructions to the FFIEC 002 

require that respondents must utilize 

U.S. GAAP when filing the report. The 

agencies propose to revise the FFIEC 

002 report form and instructions to 

account for the changes to U.S. GAAP 

set forth in ASU 2016–01.2 These 

proposed revised reporting 

requirements would become effective 

for different sets of respondents as those 

respondents become subject to the ASU. 

Institutions that are public business 

entities, as defined in U.S. GAAP, are 

subject to ASU 2016–01 for fiscal years 

beginning after December 15, 2017, 

including interim periods within those 

fiscal years. Therefore, for an institution 

with a calendar year fiscal year that is 

a public business entity, the proposed 

revised reporting requirements would 

become effective for its FFIEC 002 for 

June 30, 2018. As discussed below, 

interim guidance would be provided for 

purposes of reporting by such an 

institution in accordance with the ASU 

in its FFIEC 002 for March 31, 2018. All 

other institutions become subject to the 

ASU for fiscal years beginning after 

December 15, 2018, and interim periods 

within fiscal years beginning after 

December 15, 2019. Therefore, for an 

institution with a calendar year fiscal 

year that is not a public business entity, 

the proposed revised reporting 

requirements would become effective 

for its FFIEC 002 for December 31, 2019. 

The period over which institutions will 

be implementing this ASU ranges from 

the first quarter of 2018 through the 

fourth quarter of 2020. December 31, 

2020, will be the first quarter-end FFIEC 

002 report date as of which all 

institutions would be required to 

prepare their FFIEC 002 in accordance 

with ASU 2016–01 and the proposed 

revised reporting requirements. 

The changes to the accounting for 

equity investments under ASU 2016–01 

will affect several existing data items in 

the FFIEC 002. One outcome of these 

accounting changes is the elimination of 

the concept of available-for-sale (AFS) 

equity securities, which are measured at 

fair value on the balance sheet with 

changes in fair value recognized through 

other comprehensive income. At 

present, the historical cost and fair 

value of AFS equity securities, i.e., 

investments in mutual funds and other 


daltland on DSKBBV9HB2PROD with NOTICES
Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Notices 61299 

equity securities with readily 

determinable fair values that are not 

held for trading, are reported in 

Schedule RAL, item 1.c.(4), ‘‘All other’’ 

bonds, notes, debentures, and corporate 

stock, and Memorandum item 3, ‘‘Fair 

value of available-for-sale securities.’’ 

The total fair value of AFS securities 

reported in Schedule RAL, 

Memorandum item 3, also is reported in 

item 1, column A, of Schedule Q. 

Institutions then report in columns C, D, 

and E of item 1 of Schedule Q a 

breakdown of their AFS securities by 

the level in the fair value hierarchy 

within which the fair value amounts of 

these securities fall (Level 1, 2, or 3). 

Any balance sheet netting adjustments 

to these fair value amounts are reported 

in column B of item 1 of Schedule Q. 

Another outcome of the changes in 

the accounting for equity investments 

under ASU 2016–01 is that equity 

securities and other equity investments 

without readily determinable fair values 

that are within the scope of ASU 2016– 

01 and are not held for trading must be 

measured at fair value through net 

income, rather than at cost (less 

impairment, if any), unless the 

measurement election described above 

is applied to individual equity 

investments. In general, institutions 

currently report their holdings of such 

equity securities without readily 

determinable fair values as a component 

of other assets in Schedule RAL, item 

1.h. 

At present, AFS equity securities and 

equity investments without readily 

determinable fair values are included in 

the quarterly averages reported in 

Schedule K, Quarterly Averages. 

Institutions report the quarterly average 

for ‘‘Total claims on nonrelated parties’’ 

in item 5 of this schedule. This average 

reflects all equity securities not held for 

trading on a cost basis. In addition, for 

branches whose deposits are insured by 

the FDIC, AFS equity securities and 

equity investments without readily 

determinable fair values are included in 

the quarterly averages reported in 

Schedule O, Other Data for Deposit 

Insurance Assessments. Institutions 

report the quarterly average for 

‘‘Average consolidated total assets for 

the calendar quarter’’ in item 4 of this 

schedule. This average reflects AFS 

equity securities with readily 

determinable fair values at the lower of 

cost or fair value, and equity securities 

without readily determinable fair values 

at historical cost. 

The agencies have considered the 

changes to the accounting for equity 

investments under ASU 2016–01 and 

the effect of these changes on the 

manner in which data on equity 

securities and other equity investments 

are currently reported in the FFIEC 002, 

which has been described above. 

Accordingly, the proposed revisions to 

the FFIEC 002 report form and 

instructions to address the equity 

securities accounting changes are as 

follows: 

(1) In Schedule RAL, Assets and 

Liabilities, a new Memorandum item 4, 

‘‘Fair value of equity securities with 

readily determinable fair values not 

held for trading,’’ would be added 

effective June 30, 2018. From June 30, 

2018, through September 30, 2020, the 

instructions for Memorandum item 4 

and the reporting form for Schedule 

RAL would include guidance stating 

that Memorandum item 4 is to be 

completed only by institutions that have 

adopted ASU 2016–01. Institutions that 

have not adopted ASU 2016–01 would 

leave Memorandum item 4 blank. 

Existing Memorandum items 3, ‘‘Fair 

value of available-for-sale securities,’’ 

and 4, ‘‘Amortized cost of available-forsale securities,’’ would be renumbered 

as Memorandum items 3.a and 3.b, 

respectively, effective June 30, 2018. 

During the period from June 30, 2018, 

through September 30, 2020, the 

instructions for Schedule RAL, 

Memorandum items 3.a and 3.b, would 

explain that institutions that have 

adopted ASU 2016–01 should include 

only debt securities in Memorandum 

items 3.a and 3.b. Effective December 

31, 2020, the caption for Memorandum 

items 3.a and 3.b would be revised to 

‘‘Fair value of available-for-sale debt 

securities’’ and ‘‘Amortized cost of 

available-for-sale debt securities,’’ 

respectively, and all institutions would 

report their holdings of equity securities 

with readily determinable fair values 

not held for trading in Memorandum 

item 4. 

(2) In Schedule RAL, equity securities 

and other equity investments without 

readily determinable fair values not 

held for trading, which are currently 

reported in item 1.h, would continue to 

be reported in this item. However, the 

instructions would be revised as of June 

30, 2018, to state that, after the effective 

date of ASU 2016–01 for an institution, 

the equity securities and other equity 

investments the institution reports in 

item 1.h would be measured in 

accordance with the ASU. 

(3) In Schedule K, Quarterly Averages, 

the instructions for item 5, ‘‘Total 

claims on nonrelated parties,’’ would 

include guidance from June 30, 2018, 

through September 30, 2020, stating 

that, for purposes of reporting the 

quarterly average for total claims: 

• Institutions that have adopted ASU 

2016–01 should reflect the quarterly 

average of all debt securities not held for 

trading on an amortized cost basis, and 

• Institutions that have not adopted 

ASU 2016–01 should reflect the 

quarterly average for all securities not 

held for trading on an amortized cost 

basis. 

Then, effective December 31, 2020, 

the instructions for item 5 would 

indicate that, for debt securities not held 

for trading, the quarterly average for 

total claims should reflect such 

securities on an amortized cost basis. 

(4) In Schedule O, Other Data for 

Deposit Insurance Assessments, the 

instructions for item 4, ‘‘Average 

consolidated total assets for the calendar 

quarter,’’ would include guidance from 

June 30, 2018, through September 30, 

2020, stating that, for purposes of 

reporting the quarterly average for total 

assets: 

• Institutions that have adopted ASU 

2016–01 should reflect the quarterly 

average for debt securities not held for 

trading at amortized cost, and 

• Institutions that have not adopted 

ASU 2016–01 should reflect the 

quarterly average for all debt securities 

not held for trading at amortized cost, 

available-for-sale equity securities with 

readily determinable fair values at the 

lower of cost or fair value, and equity 

securities without readily determinable 

fair values at historical cost. 

Then, effective December 31, 2020, 

the instructions for item 4 would 

indicate that, for debt securities not held 

for trading, the quarterly average for 

total assets should reflect such 

securities at amortized cost. 

(5) In Schedule Q, the caption for item 

1, ‘‘Available-for-sale securities,’’ would 

be changed to ‘‘Available-for-sale debt 

securities and equity securities with 

readily determinable fair values not 

held for trading’’ effective June 30, 2018. 

From June 30, 2018, through September 

30, 2020, the instructions for item 1 and 

the reporting form for Schedule Q 

would include guidance stating that, for 

institutions that have adopted ASU 

2016–01, the amount reported in item 1, 

column A, must equal the sum of 

Schedule RAL, Memorandum items 3.a 

and 4, and for institutions that have not 

adopted ASU 2016–01, the amount 

reported in item 1, column A, must 

equal Schedule RAL, Memorandum 

item 3.a. Effective December 31, 2020, 

this guidance would indicate that the 

amount reported in item 1, column A, 

must equal the sum of Schedule RAL, 

Memorandum items 3.a and 4. 

Institutions that apply ASU 2016–01 

in the first quarter of 2018 will need to 

report their holdings of equity securities 

and other equity investments in 

accordance with this accounting 


daltland on DSKBBV9HB2PROD with NOTICES
61300 Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Notices 

standard within the existing structure of 

the FFIEC 002 for March 31, 2018. 

Interim guidance accompanying the 

Board’s transmittal letter to institutions 

for the March 31, 2018, report date will 

advise institutions that have adopted 

ASU 2016–01 to (a) continue to report 

the fair value and historical cost of their 

holdings of equity securities with 

readily determinable fair values not 

held for trading (which were reportable 

as available-for-sale equity securities 

prior to the adoption of ASU 2016–01) 

in existing Memorandum items 3 and 4 

of Schedule RAL; (b) measure their 

holdings of equity securities and other 

equity investments without readily 

determinable fair values not held for 

trading in accordance with the ASU and 

continue to report them in Schedule 

RAL, item 1.h; (c) report Schedule K, 

item 5, consistent with the measurement 

of Schedule RAL, item 1.i, except that 

all debt securities not held for trading 

should be measured on an amortized 

cost basis; (d) report Schedule O, item 

4, consistent with the measurement of 

Schedule RAL, item 3, except that all 

debt securities not held for trading 

should be measured at amortized cost; 

and (e) continue to report the amount 

from Memorandum item 3 of Schedule 

RAL in Schedule Q, item 1, column A. 

III. Timing 

The proposed changes to the report 

forms and instructions described in this 

notice would be implemented as of the 

June 30, 2018, report date. However, as 

discussed above, the proposed revised 

reporting requirements for equity 

investments would have varying 

effective dates for individual 

respondents and would begin with the 

June 30, 2018, report date. The agencies 

invite comment on any difficulties that 

institutions would expect to encounter 

in implementing the systems and 

process changes necessary to 

accommodate the proposed revisions to 

the FFIEC 002 and FFIEC 002S as of this 

proposed effective date. 

The specific wording of the captions 

for the new or revised data items 

discussed in this proposal and the 

numbering of these data items may be 

modified to provide clarity. 

IV. Request for Comment 

Public comment is requested on all 

aspects of this notice. Comment is 

specifically invited on: 

a. Whether the information 

collections are necessary for the proper 

performance of the agencies’ functions, 

including whether the information has 

practical utility; 

b. The accuracy of the agencies’ 

estimate of the burden of the 

information collections, including the 

validity of the methodology and 

assumptions used; 

c. Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

d. Ways to minimize the burden of the 

information collections on respondents, 

including through the use of automated 

collection techniques or other forms of 

information technology; and 

e. Estimates of capital or start up costs 

and costs of operation, maintenance, 

and purchase of services to provide 

information. 

Comments submitted in response to 

this notice will be shared among the 

agencies. All comments will become a 

matter of public record. 

Board of Governors of the Federal Reserve 

System, December 21, 2017. 

Margaret Shanks, 

Deputy Secretary of the Board. 

[FR Doc. 2017–27942 Filed 12–26–17; 8:45 am] 

BILLING CODE 6210–01–P 

FEDERAL TRADE COMMISSION 

[File No. 171 0184] 

Alimentation Couche-Tard Inc. and 

CrossAmerica Partners LP; Analysis 

To Aid Public Comment 

AGENCY: Federal Trade Commission. 

ACTION: Proposed consent agreement. 

SUMMARY: The consent agreement in this 

matter settles alleged violations of 

federal law prohibiting unfair methods 

of competition. The attached Analysis to 

Aid Public Comment describes both the 

allegations in the complaint and the 

terms of the consent orders—embodied 

in the consent agreement—that would 

settle these allegations. 

DATES: Comments must be received on 

or before January 15, 2018. 

ADDRESSES: Interested parties may file a 

comment online or on paper, by 

following the instructions in the 

Request for Comment part of the 

SUPPLEMENTARY INFORMATION section 

below. Write: ‘‘Alimentation CoucheTard, Inc. (ACT) et al.; FTC File No. 

1710184’’ on your comment, and file 

your comment online at https://

ftcpublic.commentworks.com/ftc/ 

actholidaydivest by following the 

instructions on the web-based form. If 

you prefer to file your comment on 

paper, write ‘‘Alimentation CoucheTard, Inc. (ACT) et al.; FTC File No. 

1710184’’ on your comment and on the 

envelope, and mail your comment to the 

following address: Federal Trade 

Commission, Office of the Secretary, 

600 Pennsylvania Avenue NW, Suite 

CC–5610 (Annex D), Washington, DC 

20580, or deliver your comment to the 

following address: Federal Trade 

Commission, Office of the Secretary, 

Constitution Center, 400 7th Street SW, 

5th Floor, Suite 5610 (Annex D), 

Washington, DC 20024. 

FOR FURTHER INFORMATION CONTACT: 

Nicholas Bush, (202–326–2848), Bureau 

of Competition, 600 Pennsylvania 

Avenue NW, Washington, DC 20580. 

SUPPLEMENTARY INFORMATION: Pursuant 

to Section 6(f) of the Federal Trade 

Commission Act, 15 U.S.C. 46(f), and 

FTC Rule 2.34, 16 CFR 2.34, notice is 

hereby given that the above-captioned 

consent agreement containing a consent 

order to cease and desist, having been 

filed with and accepted, subject to final 

approval, by the Commission, has been 

placed on the public record for a period 

of thirty (30) days. The following 

Analysis to Aid Public Comment 

describes the terms of the consent 

agreement, and the allegations in the 

complaint. An electronic copy of the 

full text of the consent agreement 

package can be obtained from the FTC 

Home Page (for December 15, 2017), on 

the World Wide Web, at https://

www.ftc.gov/news-events/commissionactions. 

You can file a comment online or on 

paper. For the Commission to consider 

your comment, we must receive it on or 

before January 15, 2018. Write 

‘‘Alimentation Couche-Tard, Inc. (ACT) 

et al.; FTC File No. 1710184’’ on your 

comment. Your comment—including 

your name and your state—will be 

placed on the public record of this 

proceeding, including, to the extent 

practicable, on the public Commission 

website, at https://www.ftc.gov/policy/ 

public-comments. 

Postal mail addressed to the 

Commission is subject to delay due to 

heightened security screening. As a 

result, we encourage you to submit your 

comments online. To make sure that the 

Commission considers your online 

comment, you must file it at https://

ftcpublic.commentworks.com/ftc/ 

actholidaydivest by following the 

instructions on the web-based form. If 

this Notice appears at http://

www.regulations.gov/#!home, you also 

may file a comment through that 

website. 

If you prefer to file your comment on 

paper, write ‘‘Alimentation CoucheTard, Inc. (ACT) et al.; FTC File No. 

1710184’’ on your comment and on the 

envelope, and mail your comment to the 

following address: Federal Trade 

Commission, Office of the Secretary, 

600 Pennsylvania Avenue NW, Suite 

CC–5610 (Annex D), Washington, DC 


daltland on DSKBBV9HB2PROD with NOTICES