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Activities of U.S. Affiliates of Foreign Multinational Enterprises: Revised 2015 Statistics

This publication of the Bureau of Economic Analysis ( BEA) presents revised statistics that cover the activities of U.S. affiliates of foreign multinational enterprises in 2015. A U.S. affiliate is a business enterprise in which there is foreign direct investment—that is, in which a single foreign person owns or controls, directly or indirectly, 10 percent or more of the voting securities or an equivalent interest. The data on activities of U.S. affiliates cover the entire operations of the U.S. affiliate, irrespective of the percentage of foreign ownership. Data are presented for two categories of U.S. affiliates—all affiliates and majority-owned affiliates (that is, those with a foreign ownership of more than 50 percent). Data are available in greater detail for majority-owned affiliates in order to emphasize the firms that are unambiguously under foreign control.

The statistics in this publication provide a comprehensive look at the activities—that is, the finances and operations—of U.S. affiliates. Data items include balance sheet details, value added, employment and employee compensation, sales, capital expenditures, trade in goods, and expenditures for research and development (R&D). BEA’s data provide comprehensive and reliable information needed to monitor, assess the impact of, and guide U.S. policy on foreign direct investment in the United States. They give a detailed picture of the levels and growth of foreign direct investment, as well as its distribution by industry, by U.S. state, and by originating country.

Data Collection and Universe Estimation

The statistics in this publication cover the universe of U.S. affiliates. They were derived from data reported at the enterprise, or company, level by a sample of U.S. affiliates reporting in BEA’s Annual Survey of Foreign Direct Investment in the United States.

Affiliates completed the survey by submitting a BE–15A, BE–15B, or BE–15C form. The type of form filed depended on the size of the affiliate and whether the affiliate was majority-owned. The size of an affiliate is determined by these items—total assets, sales, or net income (or loss). All majority-owned affiliates with one of these items valued at more than $300 million filed the most detailed BE–15A form. All majority-owned affiliates with any one of these items valued at more than $120 million, but with all items less than, or equal to, $300 million filed on the less detailed BE–15B form. All minority-owned affiliates with any of these items valued at more than $120 million also filed on the less detailed BE–15B form. Smaller affiliates that had total assets, sales, or net income (or loss) of more than $40 million but less than, or equal to, $120 million filed an abbreviated form, form BE–15C. U.S. affiliates with total assets, sales, and net income (or loss) less than or equal to $40 million were exempt from reporting.

BEA estimated the data for 1) nonsampled affiliates below the size reporting threshold, and 2) affiliates that did not file a survey report even though they met the criteria for filing. Estimates for nonsampled or nonreporting affiliates that existed before 2015 were derived by extrapolating forward their data from earlier years on the basis of year-to-year movement in the data reported by other affiliates.

The use of the less detailed forms BE–15B and BE–15C allows BEA to reduce the burden on mid-sized, small, and minority-owned entities. For affiliates filing the BE–15C form, BEA estimated items that appear on the B form. For majority-owned entities filing the BE–15B and BE–15C forms, BEA estimated the items that appear only on the A form, so that the results are presented in the same detail for all majority-owned affiliates. However, estimates of items that appear only on the A form are not prepared for minority-owned affiliates. Therefore, the results for all affiliates (majority-owned plus minority-owned affiliates) cover only the items that are on the less detailed B form.

Comparability With the 2012 Benchmark Survey Data

The concepts and definitions underlying the 2015 statistics are the same as those used for the 2012 benchmark survey. They are described in Foreign Direct Investment in the United States: Final Results From the 2012 Benchmark Survey.

Consistent with the data from the 2012 benchmark survey, and with the statistics for 2013–2014, the 2015 statistics by industry are based on industry classifications derived from the 2012 North American Industry Classification System (NAICS). For most industries, the classifications based on this system are identical to those in the NAICS-based industry classification system used in the 2007 benchmark survey and in the 2008–2011 annual surveys.

The 2015 estimates, together with the estimates for 2013–2014, update the universe data for U.S. affiliates from the 2012 benchmark survey. However, the 2013–2015 estimates of a few items that are shown separately in the benchmark data are combined with other items, and the 2013–2015 estimates of some items are unavailable because data for these items were only collected in the benchmark survey, and not in the annual survey.

For similar items, the statistics for affiliates in the 2012 benchmark survey report and in the 2013–2015 annual survey reports are comparable to the statistics for affiliates in the benchmark and annual survey reports for 2007–2011 and are similar to the statistics for nonbank affiliates in the reports for earlier years. (Before the 2007 benchmark survey, bank affiliates were exempt from filing reports in nonbenchmark survey years; therefore, the tabulated statistics on affiliate activities in nonbenchmark years only covered nonbank affiliates.) Some of the tables in the 2007 and 2012 benchmark survey reports do not have counterparts in this publication or in the annual survey reports for 2008–2011 because they cover items that are not collected in annual survey years. In addition, some of the tables in the 2007 benchmark survey report do not have counterparts in the 2012 benchmark survey report, the 2013 report, or the annual survey reports for 2008–2011 because they present state-level detail on gross property, plant, and equipment and on manufacturing employment as well as some other statistics that were discontinued as a result of budget cuts. Funding increases for foreign direct investment statistics allowed BEA to again collect this state-level information for U.S. affiliates, beginning with the 2014 report.

Comparability With All-U.S. Data

Employment, value added, trade in goods, and R&D data on U.S. affiliates can be compared with data on all U.S. private businesses to gauge the share of U.S. economic activity accounted for by U.S. affiliates.

Estimates of value added, exports and imports of goods, and R&D of U.S. affiliates are classified by industry of enterprise, which assigns a single industry to the entire business enterprise. In contrast, all-U.S. data for these items are classified by industry of establishment, which assigns each business location to a specific industry. As a result, these items can only be compared at aggregate levels and not across specific industry categories.

For aggregate U.S. private industry value added, comparable data for all U.S. private businesses are available in line 2 (business) of table 1.3.5, Gross Value Added by Sector, in BEA’s national income and product accounts (NIPAs). The share of U.S. business value added accounted for by affiliates from 2007 and onward can be approximated by dividing annual estimates of affiliate value added by annual estimates of U.S. business GDP. The data needed to estimate value added for bank affiliates were only collected on BEA’s surveys starting in 2007, and as a result, value added statistics for majority-owned U.S. affiliates as a share of U.S. private industry value added cannot be calculated before 2007.

Data on U.S. imports and exports of goods by U.S. affiliates are comparable with the data on U.S. trade in goods available from the U.S. Census Bureau. Data on R&D expenditures by U.S. affiliates are comparable with the data on business R&D performed in the United States available from the National Science Foundation.

For aggregate employment, comparable data for all U.S. private industries are available in line 3 of table 6.4D of BEA’s NIPAs. For all of the employment comparisons, the U.S. affiliate data on employment in Puerto Rico, in “other U.S. areas,” and in “foreign” must be excluded from the U.S. affiliate data because the all-U.S. data on private industry employment only cover employment in the 50 states and the District of Columbia.

For employment by industry, data on employment for all U.S. private industries in table 6.4D of the NIPAs, which are by industry of the individual business establishment, are most comparable with BEA’s data on affiliate employment by industry of sales, which approximate an establishment-based disaggregation. To improve comparability with the U.S. affiliate data, employment at central reserve banks, available from the Bureau of Labor Statistics, can be subtracted from total employment in finance and insurance from the NIPA data.

For employment by state, comparable data are available in the table “Full-Time and Part-Time Wage and Salary Employment by Industry (SA27, SA27N)” from BEA’s regional economic accounts, which can be accessed from the interactive tables for “Annual State Personal Income and Employment” under “Regional Data: GDP & Personal Income.” The share of U.S. employment by state accounted for by affiliates can be approximated by dividing annual estimates of affiliate employment by state by annual estimates of U.S. business nonfarm wage and salary employment by state. To improve comparability with the U.S. affiliate data, employment in private households, available in the same tables, can be subtracted from business nonfarm wage and salary employment before calculating the shares.

Overlap of Outward and Inward AMNE Statistics

Along with inward activities of multinational enterprises (AMNE) statistics, BEA also publishes outward AMNE statistics—that is, statistics on the activities of U.S. multinational enterprises (MNEs) and their foreign affiliates—based on BEA surveys of U.S. direct investment abroad. These two sets of statistics partly overlap because some U.S. companies are both foreign-owned and own foreign affiliates; these U.S. companies are included in both the inward and outward statistics. Like the inward AMNE statistics, the outward AMNE statistics are published annually and are based on benchmark surveys that are conducted once every 5 years and on annual surveys, which are conducted in the intervening years. The most recent benchmark outward AMNE statistics were for 2014 and the most recent benchmark inward AMNE statistics were for 2012. BEA’s website provides additional information on Direct Investment and Multinational Enterprises (MNEs).

Data Availability

Detailed statistics of U.S. affiliate operations for 1977–2016 are available on BEA’s Web site. For information on these statistics and how to access them, see Activities of U.S. Affiliates of Multinational Enterprises (MNEs).

Staff Contacts

For additional information about the revised 2015 statistics, email internationalaccounts@bea.gov.

General Notes to the Tables

  • A U.S. affiliate is a U.S. business enterprise in which a single foreign person owns or controls, directly or indirectly, 10 percent or more of the voting securities if the enterprise is incorporated or an equivalent interest if the enterprise is unincorporated. “Person” is broadly defined to include any individual, corporation, branch, partnership, associated group, association, estate, trust, or other organization and any government (including any corporation, institution, or other entity or instrumentality of government). A “foreign person” is any person resident outside the United States—that is, outside the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, and all U.S. territories and possessions.
  • A majority-owned U.S. affiliate is a U.S. affiliate that is owned more than 50 percent by foreign direct investors.
  • A foreign parent is the first person outside the United States in a U.S. affiliate’s ownership chain that has a direct investment interest in the affiliate.
  • The ultimate beneficial owner (UBO) is the person or entity, proceeding up a U.S. affiliate’s ownership chain, beginning with the foreign parent, that is not owned more than 50 percent by another entity. The UBO ultimately owns or controls, and thus ultimately derives the benefits and assumes the risks from owning or controlling, an affiliate. The country of the UBO is often the same as that of the foreign parent, but it may be a different country or the United States.
  • A foreign parent group consists of (1) the foreign parent, (2) any foreign person, proceeding up the foreign parent’s ownership chain, that owns more than 50 percent of the person below it, up to and including the UBO, and (3) any foreign person, proceeding down the ownership chains of each of these members, that is owned more than 50 percent by the person above it.
  • The statistics in this publication cover the universe of U.S. affiliates of foreign multinational enterprises. The one exception is number of U.S. affiliates, which cover affiliates with total assets, sales, or net income (or loss) of more than $20 million.
  • The statistics are on a fiscal year basis. The fiscal year of an affiliate is defined as the financial reporting year that ended in the calendar year. Unless otherwise specified, all balances are as of the close of fiscal year 2015.
  • To ascertain the subindustries in an industry group, see tables I.A 2 and II.A 2.
  • To ascertain the countries in a geographical area, see tables I.A 3 and II.A 3.
  • The European Union (28) comprises Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.
  • OPEC is the Organization of Petroleum Exporting Countries. Its members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.
  • The “United Kingdom Islands, Caribbean” consists of the British Virgin Islands, the Cayman Islands, Montserrat, and the Turks and Caicos Islands.
  • In the tables in which the data are disaggregated by state, “other U.S. areas” consists of the U.S. Virgin Islands, Guam, American Samoa, U.S. offshore oil and gas sites, and all other outlying U.S. areas. For employment, the “foreign” category consists of the employees of U.S. affiliates working abroad for more than 1 year. For property, plant, and equipment, the “foreign” category consists primarily of movable fixed assets temporarily located outside the United States; it excludes assets carried on the books of foreign affiliates.
  • In the tables in which the data are disaggregated by the industry of the ultimate beneficial owner, the industry “government and government related entities” consists of foreign governments, government owned or government-sponsored agencies, quasi government organizations, and government run pension funds.
  • An asterisk “(*)” indicates a nonzero value between −$500,000 and $500,000 or fewer than 50 employees.
  • Detail may not add to the total, because of rounding.
  • A “(D)” indicates that the data have been suppressed to avoid the disclosure of the data of individual companies. For employment cells that have been suppressed, a letter in the data cell indicates an employment size range; the ranges are indicated at the bottom of the tables.

Table Footnotes

Part I. All Affiliates

  • Table I.A 1
    • 1. The affiliate number counts presented in this publication exclude very small affiliates—those with total assets, sales, and net income (or loss) all less than $20 million—that, in the 2012 benchmark survey, were only required to report basic identification information and a few measures of affiliate size. Values for all items other than number counts include estimates for such small affiliates.
    • 2. The number of companies consolidated on the reports of affiliates generally is substantially higher than the number of affiliates because the report for a single affiliate may represent the consolidation of many companies.
    • 3. Expenditures include the net book value of transfers of property, plant, and equipment to the affiliate from related companies.
  • Tables I.A 4 and I.A 5
    • 1. The affiliate number counts presented in this publication exclude very small affiliates—those with total assets, sales, and net income (or loss) all less than $20 million—that, in the 2012 benchmark survey, were only required to report basic identification information and a few measures of affiliate size. Values for data items other than number counts include estimates for such small affiliates. Thus, in industries or countries for which only a few affiliates are shown in the counts presented in this table, the corresponding totals for other data items include estimates for an additional number of such very small affiliates.
    • 2. The number of companies consolidated on the reports of affiliates generally is substantially higher than the number of affiliates because the report for a single affiliate may represent the consolidation of many companies.
  • Table I.A 9
    • 1. This table shows the number of affiliates with total assets, sales, or net income (or loss) greater than $20 million that had employment. Statistics on employment shown in other tables in this publication include estimates for smaller affiliates. Thus, in states for which only a few affiliates are shown in the counts in this table, the corresponding totals for employment shown in other tables include estimates for an additional number of such very small affiliates.
    • 2. A given affiliate is counted once in the all-U.S. total. It is also counted once in each state in which it has employment. Because an affiliate may have employment in more than one state, the sum across states exceeds the all-U.S. total.
  • Table I.C 7
    • 1. Includes aircraft, railroad rolling stock, satellites, undersea cable, and trucks engaged in interstate transportation.

Part II. Majority-Owned Affiliates

  • Table II.A 1
    • 1. The affiliate number counts presented in this publication exclude very small affiliates—those with total assets, sales, and net income (or loss) all less than $20 million—that, in the 2012 benchmark survey, were only required to report basic identification information and a few measures of affiliate size. Values for all items other than number counts include estimates for such small affiliates.
    • 2. The number of companies consolidated on the reports of affiliates generally is substantially higher than the number of affiliates because the report for a single affiliate may represent the consolidation of many companies.
    • 3. Expenditures include the net book value of transfers of property, plant, and equipment to the affiliate from related companies.
    • 4. For most industries, goods supplied generally are defined as sales of outputs that are tangible. For wholesalers and retailers, goods supplied includes only the value of goods resold; BEA estimates the value of the distributive services affiliates provide by selling, or arranging for the sale of, goods and includes it in services supplied.
    • 5. For most industries, services supplied generally are defined as sales of outputs that are intangible. For insurance, services supplied consists of BEA’s estimate of the portion of premiums remaining after provision for expected or “normal” losses and a measure of premium supplements, which represent income earned on funds insurers hold on policyholders’ behalf. For banks, it includes explicit fees and commissions and an estimate of the value of implicit services provided by banks. For wholesalers and retailers, services supplied includes an estimate of the distributive services affiliates provide by selling, or arranging for the sales of, goods.
    • 6. “Other” consists largely of investment income that is included in “sales or gross operating revenues” in the income statement. In finance and insurance, affiliates include investment income in sales because it is generated by a primary activity of the company. For insurance, “other” consists of investment income remaining after BEA’s estimate of investment income earned on funds insurers hold on behalf of policyholders is removed (and included in the services supplied measure) plus the portion of premiums set aside for the settlement of expected or “normal” losses. For banks, “other” consists of the investment income remaining after BEA’s estimate of the value of implicit services provided by banks is excluded (and included in services supplied). In industries other than finance and insurance, most affiliates consider investment income to be an incidental revenue source; this income is included in the income statement in a separate “other income” category, but it is not included in the affiliates’ sales or on this line.
    • 7. Profit-type return is an economic accounting measure of profits from current production. Unlike net income, it is gross of U.S. income taxes, excludes capital gains and losses and income from equity investments, and reflects certain other adjustments needed to convert profits from a financial accounting basis to an economic accounting basis.
    • 8. Consists of all employees engaged in research and development, including managers, scientists, engineers, and other professional and technical employees.
    • 9. Interest receipts exclude, but interest payments and dividends or remitted profits include, withholding taxes.
  • Tables II.A 4 and II.A 5
    • 1. The affiliate number counts presented in this publication exclude very small affiliates—those with total assets, sales, and net income (or loss) all less than $20 million—that, in the 2012 benchmark survey, were only required to report basic identification information and a few measures of affiliate size. Values for all items other than number counts include estimates for such small affiliates. Thus, in industries or countries for which only a few affiliates are shown in the counts presented in this table, the corresponding totals for other data items include estimates for an additional number of such very small affiliates.
    • 2. The number of companies consolidated on the reports of affiliates generally is substantially higher than the number of affiliates because the report for a single affiliate may represent the consolidation of many companies.
  • Table II.A 6
    • 1. The affiliate number counts presented in this publication exclude very small affiliates—those with total assets, sales, and net income (or loss) all less than $20 million—that, in the 2012 benchmark survey, were only required to report basic identification information and a few measures of affiliate size. Values for all items other than number counts include estimates for such small affiliates. Thus, in industries for which only a few affiliates are shown in the counts presented in this table, the corresponding totals for other data items include estimates for an additional number of such very small affiliates.
    • 2. The number of companies consolidated on the reports of affiliates generally is substantially higher than the number of affiliates because the report for a single affiliate may represent the consolidation of many companies.
    • 3. Includes rental and leasing (except real estate); administrative and support services; waste management and remediation services; health care and social assistance; accommodation and food services; and miscellaneous services.
  • Table II.A 8

    • 1. For industry classification, each U.S. affiliate was required to disaggregate its sales by four-digit International Surveys Industry Classification codes; the affiliate was classified in the industry within its major group in which its sales were largest.

      When sales and employment are disaggregated by industry of affiliate, total sales and employment of a given affiliate are shown in the industry in which the affiliate was classified. When sales and employment are disaggregated by industry of sales, they are distributed among all the industries in which the affiliate reported sales; that is, the sales and employment associated with each industry of sales are shown in that industry regardless of the affiliate’s industry of classification.

    • 2. Includes employees on the payrolls of administrative offices and other auxiliary units. Excludes administrative or auxiliary employees that are located at an operating unit and serve only that operating unit; these employees are classified in the industry of sales of the operating unit that they serve.
    • 3. In the breakdown of sales and employment by industry of sales, U.S. affiliates that filed Form BE–15A had to specify their ten largest sales categories, and U.S. affiliates that filed Form BE–15B had to specify their four largest sales categories. In addition, affiliates were required to report their employment in auxiliaries. This line shows sales and employment in all unspecified industries combined.
  • Table II.A 9
    • 1. This table shows the number of affiliates with total assets, sales, or net income (or loss) greater than $20 million that had employment. Statistics on employment shown in other tables in this publication include estimates for smaller affiliates. Thus, in states for which only a few affiliates are shown in the counts in this table, the corresponding totals for employment shown in other tables include estimates for an additional number of such very small affiliates.
    • 2. A given affiliate is counted once in the all-U.S. total. It is also counted once in each state in which it has employment. Because an affiliate may have employment in more than one state, the sum across states exceeds the all-U.S. total.
  • Tables II.B 1 and II.B 2
    • 1. Includes common and preferred stock and additional paid-in capital, less treasury stock.
    • 2. Includes cumulative translation adjustments and all other components of accumulated comprehensive income for all affiliates and total owners’ equity of those unincorporated affiliates that could not provide detail on equity by type. For all affiliates combined, cumulative translation adjustments as of yearend 2015 were negative $9.3 billion.
  • Table II.C 4
    • 1. Includes the net book value of transfers of property, plant, and equipment to the affiliate from related companies.
    • 2. Includes transfers of property, plant, and equipment from the affiliate to related companies.
    • 3. Consists of the following: 1) Restatements resulting from a change in the entity, and revaluations of property, plant, and equipment to a fair market or appraised value and 2) the property, plant, and equipment balance on the date of acquisition of majority-owned affiliates that were acquired during the year, less the closing FY 2014 balance of affiliates that left the universe of majority-owned affiliates in 2015 because they were sold or liquidated or because the foreign parents’ interest was otherwise reduced to 50 percent or less.
    • 4. “Net property, plant, and equipment” on this line differs from that in column 4 of tables II.B 1 and II.B 2. Net property, plant, and equipment on this line covers all property, plant, and equipment wherever carried in the balance sheet, including that carried in the “property, plant, and equipment” account, the “other assets” account, and the “inventories” account. In contrast, net property, plant, and equipment in column 4 of tables II.B 1 and II.B 2 covers only property, plant, and equipment carried in the “property, plant, and equipment” account of the balance sheet. For example, the value of commercial buildings held by insurance companies for investment purposes is included on this line but excluded from column 4 of tables II.B 1 and II.B 2 because such property is normally carried in the “other assets” account of the balance sheet, not in the “property, plant, and equipment” account.
  • Tables II.C 5 and II.C 6
    • 1. Consists of the gross book value of all commercial buildings and associated land that are owned by the affiliate and that are either used or operated by the affiliate or leased or rented to others. Commercial buildings include apartment buildings, office buildings, hotels, motels, and buildings used for wholesale, retail, and services trades, such as shopping centers, recreational facilities, department stores, bank buildings, restaurants, public garages, and automobile service stations..
    • 2. Includes the gross book value of property, plant, and equipment used for agriculture and forestry, mining, manufacturing, or other industrial purposes. Also includes the gross book value of equipment used in commercial buildings.
  • Table II.C 7
    • 1. Consists of the gross book value of all commercial buildings and associated land that are owned by the affiliate and that are either used or operated by the affiliate or leased or rented to others. Commercial buildings include apartment buildings, office buildings, hotels, motels, and buildings used for wholesale, retail, and services trades, such as shopping centers, recreational facilities, department stores, bank buildings, restaurants, public garages, and automobile service stations.
    • 2. Includes the gross book value of property, plant, and equipment used for agriculture and forestry, mining, manufacturing, or other industrial purposes. Also includes the gross book value of equipment used in commercial buildings.
    • 3. Includes aircraft, railroad rolling stock, satellites, undersea cable, and trucks engaged in interstate transportation.
  • Table II.C 8
    • 1. All data for a given U.S. affiliate are shown in the single industry in which the affiliate was classified on the basis of its total U.S. operations. The affiliate’s activity in a particular state may differ from that of its total U.S. operations.
    • 2. Includes aircraft, railroad rolling stock, satellites, undersea cable, and trucks engaged in interstate transportation.
  • Tables II.C 9 and II.C 10
    • 1. Includes aircraft, railroad rolling stock, satellites, undersea cable, and trucks engaged in interstate transportation.
  • Table II.C 11
    • 1. Consists of the gross book value of all commercial buildings and associated land that are owned by the affiliate and that are either used or operated by the affiliate or leased or rented to others. Commercial buildings include apartment buildings, office buildings, hotels, motels, and buildings used for wholesale, retail, and services trades, such as shopping centers, recreational facilities, department stores, bank buildings, restaurants, public garages, and automobile service stations.
  • Table II.C 12
    • 1. Consists of the gross book value of all commercial buildings and associated land that are owned by the affiliate and that are either used or operated by the affiliate or leased or rented to others. Commercial buildings include apartment buildings, office buildings, hotels, motels, and buildings used for wholesale, retail, and services trades, such as shopping centers, recreational facilities, department stores, bank buildings, restaurants, public garages, and automobile service stations.

      All data for a given U.S. affiliate are shown in the single industry in which the affiliate was classified on the basis of its total U.S. operations. The affiliate’s activity in a particular state may differ from that of its total U.S. operations.
  • Table II.C 13
    • 1. Consists of the gross book value of all commercial buildings and associated land that are owned by the affiliate and that are either used or operated by the affiliate or leased or rented to others. Commercial buildings include apartment buildings, office buildings, hotels, motels, and buildings used for wholesale, retail, and services trades, such as shopping centers, recreational facilities, department stores, bank buildings, restaurants, public garages, and automobile service stations.
  • Table II.C 14
    • 1. This table shows the number of affiliates with total assets, sales, or net income (or loss) greater than $20 million that had property, plant, and equipment. Statistics on the value of property, plant, and equipment shown in other tables in this publication include estimates for smaller affiliates. Thus, in states for which only a few affiliates are shown in the counts in this table, the corresponding totals for the value of property, plant, and equipment shown in other tables include estimates for an additional number of such very small affiliates.
    • 2. A given affiliate is counted once in the all-U.S. total; it is also counted once in each state in which it has property, plant, and equipment. Because an affiliate may have property, plant, and equipment in more than one state, the sum across states exceeds the all-U.S. total.
    • 3. Includes aircraft, railroad rolling stock, satellites, undersea cable, and trucks engaged in interstate transportation.
  • Table II.C 15
    • 1. This table shows the number of affiliates with total assets, sales, or net income (or loss) greater than $20 million that had property, plant, and equipment. Statistics on the value of property, plant, and equipment shown in other tables in this publication include estimates for smaller affiliates.

      Thus, in states for which only a few affiliates are shown in the counts in this table, the corresponding totals for the value of property, plant, and equipment shown in other tables include estimates for an additional number of such very small affiliates.
    • 2. A given affiliate is counted once in the total for both use categories combined; it is also counted once in each use category in which it has property, plant, and equipment. Because an affiliate may have property, plant, and equipment in both use categories, the sum across use categories exceeds the total for both use categories combined.
    • 3. Consists of affiliates with commercial property. Commercial property comprises all commercial buildings and associated land owned by the affiliate that are either used or operated by the affiliate or leased or rented to others. Commercial buildings include apartment buildings, office buildings, hotels, motels, and buildings used for wholesale, retail, and services trades, such as shopping centers, recreational facilities, department stores, bank buildings, restaurants, public garages, and automobile service stations.
    • 4. Consists of affiliates with property, plant, and equipment used for agriculture, mining, manufacturing, or other industrial purposes.
    • 5. A given affiliate is counted once in the all-U.S. total; it is also counted once in each state in which it has property, plant, and equipment. Because an affiliate may have property, plant, and equipment in more than one state, the sum across states exceeds the all-U.S. total.
    • 6. Includes aircraft, railroad rolling stock, satellites, undersea cable, and trucks engaged in interstate transportation.
  • Table II.C 16
    • 1. Includes the net book value of transfers of property, plant, and equipment to the affiliate from related companies.
  • Table II.C 17
    • 1. Includes the net book value of transfers of plant and equipment to the affiliate from related companies.
  • Tables II.D 1 and II.D 2
    • 1. Consists of gains or losses resulting from the sale or other disposition of assets, changes in the dollar value of the affiliates’ foreign-currency-denominated assets and liabilities that are caused by changes in exchange rates, and all other unusual or nonrecurring gains or losses, including those resulting from the revaluation of assets, whether realized or not.
  • Tables II.D 7 and II.D 8
    • 1. For industry classification, each U.S. affiliate was required to disaggregate its sales by four-digit International Surveys Industry Classification codes; the affiliate was classified in the industry in which its sales were largest.

      When sales are disaggregated by industry of affiliate, total sales of a given affiliate are shown in the industry in which the affiliate was classified. When sales are disaggregated by industry of sales, they are distributed among all the industries in which the affiliate reported sales; that is, sales associated with each industry of sales are shown in that industry regardless of the affiliate’s industry of classification.
    • 2. In the breakdown of sales by industry of sales, U.S. affiliates that filed Form BE–15A had to specify their ten largest sales categories, and U.S. affiliates that filed Form BE–15B had to specify their four largest sales categories. Sales in all unspecified industries combined are shown on this line.
  • Table II.D 9
    • 1. For industry classification, each U.S. affiliate was required to disaggregate its sales by four-digit International Surveys Industry Classification codes; the affiliate was classified in the industry in which its sales were largest.

      When sales are disaggregated by industry of affiliate, total sales of a given affiliate are shown in the industry in which the affiliate was classified. When sales are disaggregated by industry of sales, they are distributed among all the industries in which the affiliate reported sales; that is, sales associated with each industry of sales are shown in that industry regardless of the affiliate’s industry of classification.
    • 2. Includes sales in all unspecified industries, which are not shown in a separate column in this table. The all-industries total in this column thus exceeds the sum across the industries shown in this table by the amount of sales in all unspecified industries.
  • Tables II.E 1 and II.E 2
    • 1. For most industries, goods supplied generally are defined as sales of outputs that are tangible. For wholesalers and retailers, goods supplied includes only the value of goods resold; BEA estimates the value of the distributive services affiliates provide by selling, or arranging for the sale of, goods and includes it in services supplied.
    • 2. For most industries, services supplied generally are defined as sales of outputs that are intangible. For insurance, services supplied consists of BEA’s estimate of the portion of premiums remaining after provision for expected or “normal” losses and a measure of premium supplements, which represent income earned on funds insurers hold on policyholders’ behalf. For banks, it includes explicit fees and commissions and an estimate of the value of implicit services provided by banks. For wholesalers and retailers, services supplied includes an estimate of the distributive services affiliates provide by selling, or arranging for the sales of, goods.
    • 3. “Other” consists largely of investment income that is included in “sales or gross operating revenues” in the income statement. In finance and insurance, affiliates include investment income in sales because it is generated by a primary activity of the company. For insurance, “other” consists of investment income remaining after BEA’s estimate of investment income earned on funds insurers hold on behalf of policyholders is removed (and included in the services supplied measure) plus the portion of premiums set aside for the settlement of expected or “normal” losses. For banks, “other” consists of the investment income remaining after BEA’s estimate of the value of implicit services provided by banks is excluded (and included in services supplied). In industries other than finance and insurance, most affiliates consider investment income to be an incidental revenue source; this income is included in the income statement in a separate “other income” category, but is not included in the affiliates’ sales or in this column. Amounts reported for industries other than finance and insurance relate to secondary activities in finance and insurance by some U.S. affiliates whose primary activity is in another industry.
  • Table II.E 3
    • 1. For most industries, goods supplied generally are defined as sales of outputs that are tangible. For wholesalers and retailers, goods supplied includes only the value of goods resold; BEA estimates the value of the distributive services affiliates provide by selling, or arranging for the sale of, goods and includes it in services supplied.
  • Table II.E 4
    • 1. For most industries, services supplied generally are defined as sales of outputs that are intangible. For insurance, services supplied consists of BEA’s estimate of the portion of premiums remaining after provision for expected or “normal” losses and a measure of premium supplements, which represent income earned on funds insurers hold on policyholders’ behalf. For banks, it includes explicit fees and commissions and an estimate of the value of implicit services provided by banks. For wholesalers and retailers, services supplied includes an estimate of the distributive services affiliates provide by selling, or arranging for the sales of, goods.
  • Table II.F 1
    • 1. Profit-type return is an economic accounting measure of profits from current production. Unlike net income, it is gross of U.S. income taxes, excludes capital gains and losses and income from equity investments, and reflects certain other adjustments needed to convert profits from a financial accounting basis to an economic accounting basis.
    • 2. Equals interest payments (column 2 in table II.I 1), plus imputed interest paid, minus interest receipts (column 1 in table II.I 1), minus imputed interest received. Imputed interest paid and received, which correspond to measures of the value of services provided by life insurance carriers and financial intermediaries without explicit charge, are estimated.
    • 3. Equals column 4 in table II.I 1.
  • Table II.F 6
    • 1. Profit-type return is an economic accounting measure of profits from current production. Unlike net income, it is gross of U.S. income taxes, excludes capital gains and losses and income from equity investments, and reflects certain other adjustments needed to convert profits from a financial accounting basis to an economic accounting basis.
  • Tables II.G 1 and II.G 2
    • 1. Consists of all employees engaged in research and development, including managers, scientists, engineers, and other professional and technical employees.
  • Table II.G 7
    • 1. All data for a given U.S. affiliate are shown in the single industry in which the affiliate was classified on the basis of its total U.S. operations. The affiliate’s activity in a particular state may differ from that of its total U.S. operations.
  • Tables II.G 10 and II.G 11
    • 1. For industry classification, each U.S. affiliate was required to disaggregate its sales by four-digit International Surveys Industry Classification codes; the affiliate was classified in the industry in which its sales were largest.

      When employment is disaggregated by industry of affiliate, total employment of a given affiliate is shown in the industry in which the affiliate was classified; when employment is disaggregated by industry of sales, it is distributed among all the industries in which the affiliate reported sales; that is, the number of employees associated with each industry of sales is shown in that industry regardless of the affiliate’s industry of classification.
    • 2. Includes employees on the payrolls of administrative offices and other auxiliary units. Excludes administrative or auxiliary employees that are located at an operating unit and serve only that operating unit; these employees are classified in the industry of sales of the operating unit that they serve.
    • 3. In the breakdown of sales and employment by industry of sales, U.S. affiliates that filed Form BE–15A had to specify their ten largest sales categories, and U.S. affiliates that filed Form BE–15B had to specify their four largest sales categories. In addition, affiliates were required to report their employment in administrative offices and other auxiliary units. Employment in all unspecified industries combined is shown on this line.
  • Table II.G 12
    • 1. For industry classification, each U.S. affiliate was required to disaggregate its sales by four-digit International Surveys Industry Classification codes; the affiliate was classified in the industry within its major group in which its sales were largest.

      When employment is disaggregated by industry of affiliate, total employment of a given affiliate is shown in the industry in which the affiliate was classified; when employment is disaggregated by industry of sales, it is distributed among all the industries in which the affiliate reported sales; that is, the number of employees associated with each industry of sales is shown in that industry regardless of the affiliate’s industry of classification.
    • 2. Includes employment in auxiliaries and in all unspecified industries, which are not shown in separate columns in this table. The all-industries total in this column thus exceeds the sum across the industries shown in this table by the amount of employment in auxiliaries and in all unspecified industries.
  • Table II.G 13
    • 1. Manufacturing employees are employees on the payroll of manufacturing plants located in the state. Manufacturing employment includes administrative office and other auxiliary employees located at a manufacturing plant that serve only that plant, but excludes all other employees on the payrolls of administrative offices or other auxiliary units.
  • Table II.G 14
    • 1. Consists of all employees engaged in research and development, including managers, scientists, engineers, and other professional and technical employees.
  • Table II.G 16
    • 1. This table shows the number of affiliates with total assets, sales, or net income (or loss) greater than $20 million that had employment. Statistics on employment shown in other tables in this publication include estimates for smaller affiliates. Thus, in states for which only a few affiliates are shown in the counts in this table, the corresponding totals for employment shown in other tables include estimates for an additional number of such very small affiliates.
    • 2. A given affiliate is counted once in the all-U.S. total; it is also counted once in each state in which it has employment. Because an affiliate may have employment in more than one state, the sum across states exceeds the all-U.S. total.
  • Tables II.H 1 and II.H 2
    • 1. Consists of exports to, or imports from, foreign business enterprises in which the U.S. affiliate has a 10 percent or more voting ownership interest.
  • Tables II.I 1 and II.I 2
    • 1. Interest receipts exclude, but interest payments and dividends or remitted profits include, withholding taxes.