Florida Senate - 2011 SB 1764 By Senator Rich 34-01239-11 20111764__ 1 A bill to be entitled 2 An act relating to corporate income taxes; amending s. 3 220.13, F.S.; limiting deductions of certain 4 intangible expenses, licensing fees, and management 5 fees paid by a taxpayer to a related entity; creating 6 exceptions to the limitations on deductions; requiring 7 the adjustment of the income of a related entity under 8 certain circumstances; limiting the number of times 9 certain items may be added or subtracted from taxable 10 income; specifying information relating to 11 transactions with related entities which must be 12 contained in a corporate income tax return; providing 13 that the failure of a taxpayer to add certain amounts 14 to a taxpayer’s income or to provide complete 15 information in a tax return is negligence for which a 16 penalty may be imposed; authorizing the Department of 17 Revenue to adopt rules; specifying the applicability 18 of the act; providing an effective date. 19 20 Be It Enacted by the Legislature of the State of Florida: 21 22 Section 1. Section 220.13, Florida Statutes, is amended to 23 read: 24 220.13 “Adjusted federal income” defined; transactions with 25 related entities.— 26 (1) ADJUSTMENTS TO TAXABLE INCOME.—The term “adjusted 27 federal income” means an amount equal to the taxpayer’s taxable 28 income as defined in subsection (2), or such taxable income of 29 more than one taxpayer as provided in s. 220.131, for the 30 taxable year, adjusted as follows: 31 (a) Additions.—There shall be added to such taxable income: 32 1. The amount of any tax upon or measured by income, 33 excluding taxes based on gross receipts or revenues, paid or 34 accrued as a liability to the District of Columbia or any state 35 of the United States which is deductible from gross income in 36 the computation of taxable income for the taxable year. 37 2. The amount of interest which is excluded from taxable 38 income under s. 103(a) of the Internal Revenue Code or any other 39 federal law, less the associated expenses disallowed in the 40 computation of taxable income under s. 265 of the Internal 41 Revenue Code or any other law, excluding 60 percent of any 42 amounts included in alternative minimum taxable income, as 43 defined in s. 55(b)(2) of the Internal Revenue Code, if the 44 taxpayer pays tax under s. 220.11(3). 45 3. In the case of a regulated investment company or real 46 estate investment trust, an amount equal to the excess of the 47 net long-term capital gain for the taxable year over the amount 48 of the capital gain dividends attributable to the taxable year. 49 4. That portion of the wages or salaries paid or incurred 50 for the taxable year which is equal to the amount of the credit 51 allowable for the taxable year under s. 220.181. This 52 subparagraph shall expire on the date specified in s. 290.016 53 for the expiration of the Florida Enterprise Zone Act. 54 5. That portion of the ad valorem school taxes paid or 55 incurred for the taxable year which is equal to the amount of 56 the credit allowable for the taxable year under s. 220.182. This 57 subparagraph shall expire on the date specified in s. 290.016 58 for the expiration of the Florida Enterprise Zone Act. 59 6. The amount of emergency excise tax paid or accrued as a 60 liability to this state under chapter 221 which tax is 61 deductible from gross income in the computation of taxable 62 income for the taxable year. 63 7. That portion of assessments to fund a guaranty 64 association incurred for the taxable year which is equal to the 65 amount of the credit allowable for the taxable year. 66 8. In the case of a nonprofit corporation that
whichholds 67 a pari-mutuel permit and whichis exempt from federal income tax 68 as a farmers’ cooperative, an amount equal to the excess of the 69 gross income attributable to the pari-mutuel operations over the 70 attributable expenses for the taxable year. 71 9. The amount taken as a credit for the taxable year under 72 s. 220.1895. 73 10. Up to nine percent of the eligible basis of any 74 designated project which is equal to the credit allowable for 75 the taxable year under s. 220.185. 76 11. The amount taken as a credit for the taxable year under 77 s. 220.1875. The addition in this subparagraph is intended to 78 ensure that the same amount is not allowed for the tax purposes 79 of this state as both a deduction from income and a credit 80 against the tax. This addition is not intended to result in 81 adding the same expense back to income more than once. 82 12. The amount taken as a credit for the taxable year under 83 s. 220.192. 84 13. The amount taken as a credit for the taxable year under 85 s. 220.193. 86 14. Any portion of a qualified investment, as defined in s. 87 288.9913, which is claimed as a deduction by the taxpayer and 88 taken as a credit against income tax pursuant to s. 288.9916. 89 15. The costs to acquire a tax credit pursuant to s. 90 288.1254(5) which thatare deducted from or otherwise reduce 91 federal taxable income for the taxable year. 92 (b) Subtractions.— 93 1. There shall be subtracted from such taxable income: 94 a. The net operating loss deduction allowable for federal 95 income tax purposes under s. 172 of the Internal Revenue Code 96 for the taxable year, 97 b. The net capital loss allowable for federal income tax 98 purposes under s. 1212 of the Internal Revenue Code for the 99 taxable year, 100 c. The excess charitable contribution deduction allowable 101 for federal income tax purposes under s. 170(d)(2) of the 102 Internal Revenue Code for the taxable year, and 103 d. The excess contributions deductions allowable for 104 federal income tax purposes under s. 404 of the Internal Revenue 105 Code for the taxable year. 106 107 However, a net operating loss and a capital loss shall never be 108 carried back as a deduction to a prior taxable year, but all 109 deductions attributable to such losses shall be deemed net 110 operating loss carryovers and capital loss carryovers, 111 respectively, and treated in the same manner, to the same 112 extent, and for the same time periods as are prescribed for such 113 carryovers in ss. 172 and 1212, respectively, of the Internal 114 Revenue Code. 115 2. There shall be subtracted from such taxable income any 116 amount to the extent included therein the following: 117 a. Dividends treated as received from sources without the 118 United States, as determined under s. 862 of the Internal 119 Revenue Code. 120 b. All amounts included in taxable income under s. 78 or s. 121 951 of the Internal Revenue Code. 122 123 However, as to any amount subtracted under this subparagraph, 124 there shall be added to such taxable income all expenses 125 deducted on the taxpayer’s return for the taxable year which are 126 attributable, directly or indirectly, to such subtracted amount. 127 Further, no amount shall be subtracted with respect to dividends 128 paid or deemed paid by a Domestic International Sales 129 Corporation. 130 3. In computing “adjusted federal income” for taxable years 131 beginning after December 31, 1976, there shall be allowed as a 132 deduction the amount of wages and salaries paid or incurred 133 within this state for the taxable year for which no deduction is 134 allowed pursuant to s. 280C(a) of the Internal Revenue Code 135 (relating to credit for employment of certain new employees). 136 4. There shall be subtracted from such taxable income any 137 amount of nonbusiness income included therein. 138 5. There shall be subtracted any amount of taxes of foreign 139 countries allowable as credits for taxable years beginning on or 140 after September 1, 1985, under s. 901 of the Internal Revenue 141 Code to any corporation that whichderived less than 20 percent 142 of its gross income or loss for its taxable year ended in 1984 143 from sources within the United States, as described in s. 144 861(a)(2)(A) of the Internal Revenue Code, not including credits 145 allowed under ss. 902 and 960 of the Internal Revenue Code, 146 withholding taxes on dividends within the meaning of sub 147 subparagraph 2.a., and withholding taxes on royalties, interest, 148 technical service fees, and capital gains. 149 6. Notwithstanding any other provision of this code, except 150 with respect to amounts subtracted pursuant to subparagraphs 1. 151 and 3., any increment of any apportionment factor which is 152 directly related to an increment of gross receipts or income 153 which is deducted, subtracted, or otherwise excluded in 154 determining adjusted federal income shall be excluded from both 155 the numerator and denominator of such apportionment factor. 156 Further, all valuations made for apportionment factor purposes 157 shall be made on a basis consistent with the taxpayer’s method 158 of accounting for federal income tax purposes. 159 (c) Installment sales occurring after October 19, 1980.— 160 1. In the case of any disposition made after October 19, 161 1980, the income from an installment sale shall be taken into 162 account for the purposes of this code in the same manner that 163 such income is taken into account for federal income tax 164 purposes. 165 2. Any taxpayer who regularly sells or otherwise disposes 166 of personal property on the installment plan and reports the 167 income therefrom on the installment method for federal income 168 tax purposes under s. 453(a) of the Internal Revenue Code shall 169 report such income in the same manner under this code. 170 (d) Nonallowable deductions.—A deduction for net operating 171 losses, net capital losses, or excess contributions deductions 172 under ss. 170(d)(2), 172, 1212, and 404 of the Internal Revenue 173 Code which has been allowed in a prior taxable year for Florida 174 tax purposes shall not be allowed for Florida tax purposes, 175 notwithstanding the fact that such deduction has not been fully 176 utilized for federal tax purposes. 177 (e) Adjustments related to the Federal Economic Stimulus 178 Act of 2008 and the American Recovery and Reinvestment Act of 179 2009.—Taxpayers shall be required to make the adjustments 180 prescribed in this paragraph for Florida tax purposes in 181 relation to certain tax benefits received pursuant to the 182 Economic Stimulus Act of 2008 and the American Recovery and 183 Reinvestment Act of 2009. 184 1. There shall be added to such taxable income an amount 185 equal to 100 percent of any amount deducted for federal income 186 tax purposes as bonus depreciation for the taxable year pursuant 187 to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as 188 amended by s. 103 of Pub. L. No. 110-185 and s. 1201 of Pub. L. 189 No. 111-5, for property placed in service after December 31, 190 2007, and before January 1, 2010. For the taxable year and for 191 each of the 6 subsequent taxable years, there shall be 192 subtracted from such taxable income an amount equal to one 193 seventh of the amount by which taxable income was increased 194 pursuant to this subparagraph, notwithstanding any sale or other 195 disposition of the property that is the subject of the 196 adjustments and regardless of whether such property remains in 197 service in the hands of the taxpayer. 198 2. There shall be added to such taxable income an amount 199 equal to 100 percent of any amount in excess of $128,000 200 deducted for federal income tax purposes for the taxable year 201 pursuant to s. 179 of the Internal Revenue Code of 1986, as 202 amended by s. 102 of Pub. L. No. 110-185 and s. 1202 of Pub. L. 203 No. 111-5, for taxable years beginning after December 31, 2007, 204 and before January 1, 2010. For the taxable year and for each of 205 the 6 subsequent taxable years, there shall be subtracted from 206 such taxable income one-seventh of the amount by which taxable 207 income was increased pursuant to this subparagraph, 208 notwithstanding any sale or other disposition of the property 209 that is the subject of the adjustments and regardless of whether 210 such property remains in service in the hands of the taxpayer. 211 3. There shall be added to such taxable income an amount 212 equal to the amount of deferred income not included in such 213 taxable income pursuant to s. 108(i)(1) of the Internal Revenue 214 Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There 215 shall be subtracted from such taxable income an amount equal to 216 the amount of deferred income included in such taxable income 217 pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986, 218 as amended by s. 1231 of Pub. L. No. 111-5. 219 4. Subtractions available under this paragraph may be 220 transferred to the surviving or acquiring entity following a 221 merger or acquisition and used in the same manner and with the 222 same limitations as specified by this paragraph. 223 5. The additions and subtractions specified in this 224 paragraph are intended to adjust taxable income for Florida tax 225 purposes, and, notwithstanding any other provision of this code, 226 such additions and subtractions shall be permitted to change a 227 taxpayer’s net operating loss for Florida tax purposes. 228 (2) DEFINITIONS.—For purposes of this section, a taxpayer’s 229 taxable income for the taxable year means taxable income as 230 defined in s. 63 of the Internal Revenue Code and properly 231 reportable for federal income tax purposes for the taxable year, 232 but subject to the limitations set forth in paragraph (1)(b) 233 with respect to the deductions provided by ss. 172 (relating to 234 net operating losses), 170(d)(2) (relating to excess charitable 235 contributions), 404(a)(1)(D) (relating to excess pension trust 236 contributions), 404(a)(3)(A) and (B) (to the extent relating to 237 excess stock bonus and profit-sharing trust contributions), and 238 1212 (relating to capital losses) of the Internal Revenue Code, 239 except that, subject to the same limitations, the term: 240 (a) “Taxable income,” in the case of a life insurance 241 company subject to the tax imposed by s. 801 of the Internal 242 Revenue Code, means life insurance company taxable income; 243 however, for purposes of this code, the total of any amounts 244 subject to tax under s. 815(a)(2) of the Internal Revenue Code 245 pursuant to s. 801(c) of the Internal Revenue Code shall not 246 exceed, cumulatively, the total of any amounts determined under 247 s. 815(c)(2) of the Internal Revenue Code of 1954, as amended, 248 from January 1, 1972, to December 31, 1983; 249 (b) “Taxable income,” in the case of an insurance company 250 subject to the tax imposed by s. 831(b) of the Internal Revenue 251 Code, means taxable investment income; 252 (c) “Taxable income,” in the case of an insurance company 253 subject to the tax imposed by s. 831(a) of the Internal Revenue 254 Code, means insurance company taxable income; 255 (d) “Taxable income,” in the case of a regulated investment 256 company subject to the tax imposed by s. 852 of the Internal 257 Revenue Code, means investment company taxable income; 258 (e) “Taxable income,” in the case of a real estate 259 investment trust subject to the tax imposed by s. 857 of the 260 Internal Revenue Code, means the income subject to tax, computed 261 as provided in s. 857 of the Internal Revenue Code; 262 (f) “Taxable income,” in the case of a corporation that 263 whichis a member of an affiliated group of corporations filing 264 a consolidated income tax return for the taxable year for 265 federal income tax purposes, means taxable income of such 266 corporation for federal income tax purposes as if such 267 corporation had filed a separate federal income tax return for 268 the taxable year and each preceding taxable year for which it 269 was a member of an affiliated group, unless a consolidated 270 return for the taxpayer and others is required or elected under 271 s. 220.131; 272 (g) “Taxable income,” in the case of a cooperative 273 corporation or association, means the taxable income of such 274 organization determined in accordance with the provisions of ss. 275 1381-1388 of the Internal Revenue Code; 276 (h) “Taxable income,” in the case of an organization that 277 whichis exempt from the federal income tax by reason of s. 278 501(a) of the Internal Revenue Code, means its unrelated 279 business taxable income as determined under s. 512 of the 280 Internal Revenue Code; 281 (i) “Taxable income,” in the case of a corporation for 282 which there is in effect for the taxable year an election under 283 s. 1362(a) of the Internal Revenue Code, means the amounts 284 subject to tax under s. 1374 or s. 1375 of the Internal Revenue 285 Code for each taxable year; 286 (j) “Taxable income,” in the case of a limited liability 287 company, other than a limited liability company classified as a 288 partnership for federal income tax purposes, as defined in and 289 organized pursuant to chapter 608 or qualified to do business in 290 this state as a foreign limited liability company or other than 291 a similar limited liability company classified as a partnership 292 for federal income tax purposes and created as an artificial 293 entity pursuant to the statutes of the United States or any 294 other state, territory, possession, or jurisdiction, if such 295 limited liability company or similar entity is taxable as a 296 corporation for federal income tax purposes, means taxable 297 income determined as if such limited liability company were 298 required to file or had filed a federal corporate income tax 299 return under the Internal Revenue Code; 300 (k) “Taxable income,” in the case of a taxpayer liable for 301 the alternative minimum tax as defined in s. 55 of the Internal 302 Revenue Code, means the alternative minimum taxable income as 303 defined in s. 55(b)(2) of the Internal Revenue Code, less the 304 exemption amount computed under s. 55(d) of the Internal Revenue 305 Code. A taxpayer is not liable for the alternative minimum tax 306 unless the taxpayer’s federal tax return, or related federal 307 consolidated tax return, if included in a consolidated return 308 for federal tax purposes, reflect a liability on the return 309 filed for the alternative minimum tax as defined in s. 55(b)(2) 310 of the Internal Revenue Code; 311 (l) “Taxable income,” in the case of a taxpayer whose 312 taxable income is not otherwise defined in this subsection, 313 means the sum of amounts to which a tax rate specified in s. 11 314 of the Internal Revenue Code plus the amount to which a tax rate 315 specified in s. 1201(a)(2) of the Internal Revenue Code are 316 applied for federal income tax purposes. 317 (3) LIMITATIONS ON DEDUCTIONS OF INTANGIBLE EXPENSES AND 318 FEES WITH A RELATED ENTITY.— 319 (a) Definitions.—As used in this subsection, the term: 320 1. “Intangible expenses” means the following amounts to the 321 extent that these amounts are allowed as deductions in 322 determining federal taxable income under the Internal Revenue 323 Code before the application of any net operating loss deduction 324 and special deductions for the taxable year: 325 a. Expenses, losses, and costs directly or indirectly for, 326 related to, or in association with the acquisition, use, 327 maintenance, management, ownership, sale, exchange, or other 328 disposition of intangible property; 329 b. Royalty, patent, technical, trademark, and copyright 330 fees; 331 c. Licensing fees; or 332 d. Other substantially similar expenses and costs, 333 including, but not limited to, interest and losses from 334 factoring transactions. 335 2. “Intangible property” means patents, patent 336 applications, trade names, trademarks, service marks, 337 copyrights, trade secrets, and substantially similar types of 338 intangible assets. 339 3. “Interest expenses” means amounts that are allowed as 340 deductions under s. 163 of the Internal Revenue Code in 341 determining federal taxable income before the application of any 342 net operating loss deductions and special deductions for the 343 taxable year. 344 4. “Management fees” means expenses and costs paid for 345 services, including, but not limited to, management overhead, 346 management supervision, accounts receivable and payable, 347 employee benefit plans, insurance, legal, payroll, data 348 processing, purchasing, tax, financial and securities, billing, 349 accounting, reporting and compliance, or similar services, only 350 to the extent that the amounts are allowed as a deduction, cost, 351 or expense in determining taxable net income under the Internal 352 Revenue Code before the application of any net operating loss 353 deduction and special deductions for the taxable year. 354 5. “Recipient” means a related entity that is paid an item 355 of income that corresponds to an intangible expense, interest 356 expense, or management fee. 357 6. “Related entity” means an artificial entity that would 358 be a member of the taxpayer’s affiliated group under s. 1504 of 359 the Internal Revenue Code during all or any portion of the 360 taxable year using an ownership percentage of 50 percent instead 361 of 80 percent. The term includes any entity, other than a 362 natural person, which would be included in the affiliated group 363 based upon a 50 percent ownership percentage if the entity was 364 organized as a corporation. 365 (b) Additions.—Except as provided in paragraph (c), in 366 determining its adjusted federal income under this section and 367 s. 220.131, a corporation subject to tax shall add to its 368 taxable income: 369 1. Intangible expenses; 370 2. Interest expenses; and 371 3. Management fees, 372 373 paid, accrued, or incurred directly or indirectly with a related 374 entity. For income received from a pass-through entity or a 375 disregarded entity, the corporation is deemed to have received 376 its share of the income and the expenses of the pass-through 377 entity or disregarded entity for purposes of this subsection. 378 (c) Special exceptions.—Except as provided in paragraph 379 (d), the addition of intangible expenses, interest expenses, or 380 management fees otherwise required in a taxable year under this 381 subsection for a specific transaction with a related entity is 382 not required if one of the following apply: 383 1. The taxpayer and the recipient are included in the same 384 Florida consolidated tax return filed under s. 220.131 for the 385 taxable year. 386 2. The taxpayer and the executive director or his or her 387 designee agree in writing to alternative computations or 388 adjustments. The executive director or his or her designee may 389 enter into such an agreement only if the taxpayer has clearly 390 established to the satisfaction of the executive director or his 391 or her designee that the addition is unreasonable and that the 392 proposed alternative method of determining the measure of the 393 tax accurately reflects the activity, business, income, and 394 capital of the taxpayers within this state. The agreement must 395 be signed by the executive director or his or her designee. The 396 term of the agreement may not exceed 4 years. 397 3. The taxpayer makes a disclosure on its return and 398 establishes all of the following by clear and convincing 399 evidence: 400 a. The recipient was subject to an income tax or franchise 401 tax measured in whole or part by net income in its state or 402 country of commercial domicile, or in the state of commercial 403 domicile in which an intangible is required by contract to be 404 held, and 405 (I) The tax base for the income or franchise tax included 406 the intangible expense, management fee, or interest expense 407 paid, accrued, or incurred by the taxpayer; 408 (II) The aggregate effective tax rate applied was at least 409 5.5 percent; 410 (III) If the recipient is a foreign corporation, the 411 foreign nation has a comprehensive income tax treaty with the 412 United States; and 413 (IV) The recipient did not receive a credit, exemption, or 414 exclusion for the net income from its intangible income, 415 management fee income, or interest income, or the credit, 416 exemption, or exclusion received was 75 percent or less of the 417 net income. 418 b. The transaction did not have Florida tax avoidance as a 419 principle purpose. 420 c. The recipient regularly engages in the same types of 421 transactions with third parties. 422 d. The transaction was made at a commercially reasonable 423 rate and at arms-length terms similar to those with third 424 parties. 425 4. The taxpayer makes a disclosure on its return and 426 establishes all of the following by clear and convincing 427 evidence: 428 a. The related entity, during the same taxable year, 429 directly or indirectly incurred and paid the amount of the 430 intangible expense, interest expense, and management fee to a 431 person or entity that is not a related entity. 432 b. The transaction was done for a valid business purpose. 433 c. The payments were limited to reimbursement of the 434 amounts paid to a person or entity that is not a related entity. 435 d. The unrelated person or entity regularly engages in the 436 same types of transactions with third parties on a substantial 437 basis. 438 (d) Limitation on special exceptions.—The exceptions 439 described in subparagraphs (c)3. and (c)4. do not apply to: 440 1. Interest paid by a taxpayer in connection with a debt 441 incurred to acquire the taxpayer’s or a related entity’s assets 442 or stock in a transaction referenced in s. 368 of the Internal 443 Revenue Code. For purposes of this subparagraph, acquisition 444 interest paid by a taxpayer to a person or entity that is not a 445 related entity is deemed to be made to a related entity. 446 2. Intangible property acquired directly or indirectly from 447 the taxpayer or from a related entity. 448 3. Those instances in which the related entity is primarily 449 engaged in managing, acquiring, or maintaining intangible 450 property or related-party financing and a primary purpose of the 451 transaction was the avoidance of Florida tax. 452 4. Those instances in which the taxpayer files with the 453 related entity or the related entity files with another related 454 entity an income tax return or report and the return or report 455 is due because of the imposition of a tax on or measured by 456 income or the income tax return or report results in the 457 elimination of the tax effects from transactions directly or 458 indirectly between the taxpayer and the related member. 459 (e) Adjustment to the taxable income of a related entity. 460 To the extent that a taxpayer is required to make an adjustment 461 under paragraph (b) or paragraph (c) for a specific related 462 entity transaction, the corresponding related entity must make a 463 corresponding subtraction to its taxable income if the income of 464 the related entity is subject to tax in this state. 465 (f) Adjustment of net operating loss carryover.—The amount 466 of a taxpayer’s net operating loss carryover from tax years 467 ending before December 31, 2011, to a tax year ending on or 468 after December 31, 2011, must be adjusted to account for the 469 addition of intangible expenses, interest expenses, and 470 management fees under this subsection. However, this calculation 471 may not increase the amount of a net operating loss carryover. 472 (g) Limitation on additions to income.—This subsection does 473 not require a taxpayer to add to its Florida taxable income more 474 than once any amount of interest expenses, intangible expenses, 475 or management fees that the taxpayer pays, accrues, or incurs to 476 a related entity. 477 (h) Limitations on subtractions to income.—This subsection 478 does not allow any item to be subtracted from adjusted federal 479 income more than once a subtraction for any item that is 480 excluded from income, or any item to be included in the adjusted 481 federal income of more than one taxpayer. 482 (i) Authority to make adjustments.—This subsection does not 483 limit or negate the authority of the executive director to make 484 adjustments under s. 220.131(2), s. 220.44, or s. 220.152. 485 (j) Required information for a return.—Each taxpayer shall 486 provide the following information to the department along with 487 its tax return regarding each related entity transaction: 488 1. The name of the recipient; 489 2. The state or country of domicile of the recipient; 490 3. The amount paid to the recipient; and 491 4. A complete description of the payment made to the 492 recipient. 493 (k) Negligence.—The failure of a taxpayer to add to its 494 income an amount paid directly or indirectly to a related party 495 or to provide complete information along with the tax return is 496 evidence of negligence within the meaning of s. 220.803(1). 497 (l) Rulemaking.—The department may adopt rules and forms 498 necessary to administer this subsection, including, but not 499 limited to, forms and rules for reporting transactions with 500 related entities. 501 Section 2. This act shall take effect upon becoming a law, 502 and applies to tax years ending on or after December 31, 2011.