2508001 Informal Interpretation

Company A is an acquiring entity and has an overlapping NAICS code with the acquired person. Under the new HSR instructions, this NAICS code requires street-level reporting for the establishments from which dollar revenues were derived. Company A’s offices are in one state, but its sales personnel, who generate the revenue in the overlapping NAICS code, work remotely in other states. The remote sales personnel do not work (i.e., derive revenues) from any Company A-owned offices. In a prior informal interpretation (2009008), the PNO agreed that where sales were made by remote workers, the filer could provide, in response to a state-level reporting request, the state where the entity was physically located and include an endnote explaining the company’s operations.

Based on this, a proper response to the street-level reporting for remote workers would be to identify the street address of Company A’s offices and include an endnote explaining the remote sales structure of Company A, including the states in which Company A derives sales.

Would you please confirm that this approach is acceptable?