No provision for income taxes is reflected in the accompanying financial statements as there are no items of unrelated business income. Publication Revenue and Costs Publication revenue is allocated to Federal and private sources based on the relative value of items sold during the year between those funded by Federal and private sources. Inventory of non-government funded publications has been determined to be immaterial by management and therefore, inventory has not been recorded in the accompanying balance sheet. Licensing and Educational Products Income NCPC derives royalty income from the license of the McGruff character and slogan from companies that produce and market McGruff crime prevention and drug abuse educational products. Pension Plan NCPC has defined-contribution pension plan funded through individual contracts with an insurance company.
All employees are eligible to participate.
In addition, employees may make voluntary contributions to the Plan. Commitments Office Lease NCPC is a sublessee of 9,133 square feet of office space. In October 1994, NCPC extended this sublease through August 31, 2000. NCPC also modified a lease for additional space on June 30, 1998. This lease expires on July 31, 2003.