group determined for such reporting year with respect to the product line to which the specified amount relates. (B) Net income ratio For purposes of this paragraph, the term net income ratio means the ratio of— (i) net income determined without regard to interest income, interest expense, and income taxes, divided by (ii) revenues. (C) Method of determination Amounts described in subparagraph (B) shall be determined with respect to the international financial reporting group on the basis of the consolidated financial statements referred to in paragraph (4)(A)(i) and the books and records of the members of the international financial reporting group which are used in preparing such statements, taking into account only revenues and expenses of the members of such group (other than the members of such group which are (or are treated as) a domestic corporation for purposes of this subsection) derived from, or incurred with respect to— (i) persons who are not members of such group, and (ii) members of such group which are (or are treated as) a domestic corporation for purposes of this subsection. (4) International financial reporting group For purposes of this subsection— (A) In general The term international financial reporting group means any group of entities, with respect to any specified amount, if such amount is paid or incurred during a reporting year of such group with respect to which— (i) such group prepares consolidated financial statements (within the meaning of section 163(n)(4)) with respect to such year, and (ii) the average annual aggregate payment amount of such group for the 3-reporting-year period ending with such reporting year exceeds $100,000,000. (B) Annual aggregate payment amount The term annual aggregate payment amount means, with respect to any reporting year of the group referred to in subparagraph (A)(i), the aggregate specified amounts to which paragraph (1) applies (or would apply if such group were an international financial reporting group). (C) Application of certain rules Rules