Changes in Definitions, Classifications, and Presentation in the U.S. International Accounts

Several changes in definitions, classifications, and presentation were made in the U.S. international transactions accounts (ITAs) with the release of statistics on June 17, 2010. Most of the changes result from a multi-year effort to modernize and enhance BEA's international economic accounts. An article describing this effort is available on BEA's Web site. The changes made this June are summarized below and are described in more detail in the article.

Reclassification of certain exports and imports of military-related goods from services to goods beginning with statistics for 1999. Exports of goods under the U.S. Foreign Military Sales program, which were previously recorded under services as part of “transfers under U.S. military agency sales contracts” (ITA table 1, line 5), are now reclassified as exports of goods (ITA table 1, line 3). Petroleum purchases abroad by the U.S. military, which were previously recorded under services as part of “direct defense expenditures” (ITA table 1, line 22), are now reclassified as imports of goods (ITA table 1, line 20).
Reclassification of air and ocean carriers' expenditures on fuel in foreign ports from services to goods beginning with statistics for 1999. Foreign carriers' expenditures on fuel in U.S. ports, which were previously recorded as part of exports of "other" transportation services (ITA table 1, line 8), are now reclassified as exports of goods (ITA table 1, line 3). U.S. carriers' expenditures on fuel in foreign ports, which were previously recorded as part of imports of “other” transportation services (ITA table 1, line 25), are now reclassified as imports of goods (ITA table 1, line 20).
Exclusion of migrants’ transfers from the capital account (ITA table 1, line 39) beginning with statistics for 1982.
Reclassification of permanent debt between affiliated banks, bank holding companies, and financial holding companies from direct investment (ITA table 1, lines 51 and 64) to “other investment” (ITA table 1, lines 54 and 69) beginning with statistics for 2007.
Modification of ITA table 2a (table 2 in the Survey of Current Business) to present additional data for balance of payments adjustments to Census trade data in section A.
Change in terminology in ITA table 7a (table 7 in the Survey of Current Business) to replace "capital" with "financial flows" in the title and on several lines and to drop the word "capital" on several lines.

There is an additional change in definition in the U.S. international investment position (IIP) accounts with the release of statistics for the IIP on June 25, 2010. To complete the implementation of the latest international guidelines on the treatment of allocations of special drawing rights (SDRs) that BEA initiated with the December 2009 release of the ITAs for the third quarter of 2009, the statistics for the IIP through yearend 2009 now include U.S. reserve-related liabilities resulting from the allocations in “other U.S. government liabilities."

The statistics released this June are also updated and revised to reflect newly available source data and other improvements. The July Survey of Current Business will contain tables and an article describing revisions to the ITAs. Revisions to the IIP will be described in a separate article.

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