Was Mead more than a Passive Investor in Lexis/Nexis?
Mead asserts that Allied-Signal requires Illinois to prove Mead and Lexis/Nexis met the operational test, because the companies were not unitary. Otherwise, Illinois would violate constitutional limits in its apportionment. Brief for Petitioner at 27-28. The test is an exception to the unitary business requirement: income from a nonunitary asset is apportionable if the asset supports the company’s regular business in a substantial, continuous way. Id. at 25-26, 29. Mead argues the appellate court erred in finding an operational function because it incorrectly relied on factors demonstrating ownership, such as Mead’s ownership percentage, statements in public filings, and oversight of investments and capital expenditures. Id. at 38-40. According to Mead, collapsing the two tests into a single test eliminates the requirement of nexus between the in-state activity and the nonunitary asset. Id. at 17-18, 45. Removing the distinction would make all out-of-state subsidiary income apportionab
