Purpose of Schedule

Schedule M-3, Part I, asks certain questions about the corporation's financial statements and reconciles financial statement worldwide net income (loss) for the corporation (or consolidated financial statement group, if applicable), as reported on Part I, line 4a, to income (loss) per the income statement of the corporation for U.S. income tax purposes, as reported on Part I, line 11.

Schedule M-3, Parts II and III, reconcile financial statement net income (loss) for the U.S. tax return (per Schedule M-3, Part I, line 11) to total income (loss) on Form 1120-S, Schedule K, line 18.