C 59.2:F 76/4/ 200 Ji/^iA//»i. October 2006 Foreign Direct Investment ^ in the United States Final Results From the 2002 Benchmark Survey Measuring the Nations tconotny. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ E ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ija* BUREAU OF ECONOMIC ANALYSIS U.S. DEPARTMENT OF COMMERCE Foreign Direct Investment in the United States Final Results From the 2002 Benchmark Survey Pennsylvania State University Libraries FEB 1 5 2007 Documents Collection U.S. Depository Copy U.S. DEPARTMENT OF COMMERCE Carlos M. Gutierrez, Secretary R9& 121? A BUREAU OF ECONOMIC ANALYSIS ■&■ OUjA J. Steven Landefeld, Director Rosemary D. Marcuss, Deputy Director BUREAU OF ECONOMIC ANALYSIS U.S. DEPARTMENT OF COMMERCE OCTOBER 2006 www.bea.gov Preface This volume presents the results of the 2002 Bench- mark Survey of Foreign Direct Investment in the United States that v^as conducted by the U.S. Bureau of Economic Analysis (BEA). Benchmark surveys are BEA's most comprehensive surveys — in terms of both the number of companies covered and the amount of information gathered. The 2002 survey covered the foreign direct investment universe, which consists of all U.S. business enterprises ow^ned 10 percent or more, directly or indirectly, by a foreign person. The last benchmark survey covered 1997. The survey collected detailed data on the financial structure and operations of U.S. affiliates of foreign companies in 2002. The data include balance sheets, income statements, sales of goods and services, exter- nal financial position, employment and compensation of employees, U.S. trade in goods, research and devel- opment expenditures, and U.S. land owned. The sur- vey also collected data on transactions and positions between U.S. affiHates and their foreign parent compa- nies that are the source data of the official estimates of direct investment that enter the U.S. national income and product accounts and the U.S. international in- vestment position and international transactions (or balance of payments) accounts. The data from the sur- vey are disaggregated in a number of ways, including by industry of U.S. affiliate, by country and industry of ultimate beneficial owner or foreign parent, and, for selected data, by state. The data from the benchmark survey will be used as the primary basis for expanding to universe levels the data for nonbenchmark years that are collected in BEA's quarterly and annual cutoff sample surveys, which cover all U.S. affiliates above a size-exemption level. The quarterly surveys collect sample data on bal- ance of payments transactions between U.S. affiliates and their foreign parents, and the annual surveys col- lect sample data on the financial structure and opera- tions of U.S. affiliates. For both types of data, estimates for nonsample affiliates usually are derived by extrapo- lating forward their data from the benchmark survey on the basis of the year-to-year movements in the data reported by affiliates in the sample. Many of the items for which data were collected in the 2002 benchmark survey are also collected annually, but other items are collected only in benchmark survey years. These items include research and development expenditures broken down by source of funding, the number of employees covered by collective bargaining agreements, and U.S. exports and imports of goods by product and by country of destination and ori- gin. Ill Acknowledgments The Bureau of Economic Analysis thanks the staffs of the U.S. companies that responded to the 2002 bench- mark survey for their efforts in completing and filing reports and for their cooperation with BEA during the processing and review of the data. Ralph Kozlow, Associate Director for International Economics, provided general guidance for the survey project. Obie G. Whichard, Chief of the International Investment Division (IID), and David H. Galler, Assis- tant Chief of IID, directed the design of the benchmark survey report forms, the conduct of the survey, and the analysis and publication of the results. The Direct Investment in the United States Branch (DIUSB) under the direction of David H. Galler, former Chief of DIUSB, and Joseph F. Cherry III, the current Chief, was primarily responsible for conduct- ing the survey. Joseph F. Cherry III, former Chief of the Annual and Benchmark Surveys Section of DIUSB, and Charles R. Gravitz, the current Chief, supervised the editing and processing of the reports. The following staff processed and edited the survey: Chester C. Braham, Sarah E. Braham, Nichole Brooks, Erica Carson-Brown, Karen M. Dennison, Constance T. Deve, Michelle L. Granson, Lonnie A. Hunter, Kris- tina Kaminski, Edna A. Ludden, Isabel L. McConnell, Demetria A. McCormick, Gregory L. McCormick, Sid- ney A. Moskowitz, Chad M. Poist, Joseph N. Poist III, Ronald L. Ross, Clarence D. Smith, Marie P. Smith, John R. Starnes, Christopher J. Stein, and Diann L. Vann. Lonnie A. Hunter and William J. Zeile conducted the final review of the results by DIUSB to ensure con- sistency and accuracy. Luis Garcia, Chief of the Information Technology Branch, supervised the computer programming for data estimation and tabulation. Karen E. Poffel pro- grammed the integrated control file of foreign direct investment in the United States. Diane I. Young, with the assistance of Tara O'Brien, designed the programs used to derive the estimates for unreported data, to generate the tables, and to prevent the disclosure of company-specific data. Neeta B. Kapoor assisted in generating the tables. Stephen P. Holiday, Douglas ]. Klear, Brenda ]. Bolden, and Elizabeth Shumate of the Office of the Chief Information Officer (OCIO) under the direction of Alan C. Lorish, Jr., Chief of OCIO, performed the computer programming and data conversion and pro- cessing activities. William J. Zeile of the Research Branch prepared the methodology and other text and coordinated the de- sign of the tables for this publication. General guid- ance for writing the text was provided by Ned G. Howenstine, Chief of the Research Branch. Kristina Maze of the Communications Division co- ordinated the production of this publication. Danielle Wittenberg typeset the tables and text and provided editorial assistance. tv Contents Preface ^ Acknowledgments iv Methodology M-1 Coverage M-5 Concepts and Definitions M-5 Direct investment M-5 Determination of residency M-6 The U.S. affiliate M-6 The foreign owners M-7 Accounting Principles M-8 Fiscal Year Reporting M-8 Confidentiality M-8 Classification of Data M-9 Industry classification M-10 Country classification M-1 3 Estimation and General Validity of the Data M-14 Number of Affiliates M-18 Financial and Operating Data M-18 Balance sheets and income statements M-19 Value added M-19 Sales of goods and services M-19 Employment and compensation of employees M-20 Property, plant, and equipment M-21 U.S. trade in goods M-21 Research and development M-22 Direct Investment Position and Balance of Payments Data M-22 Foreign direct investment position in the United States M-23 Direct investment capital inflows M-24 Direct investment income M-27 Direct investment royalties and license fees M-27 Direct investment other private services M-28 Tables 1 General Notes to the Tables 2 Footnotes to Tables 207 Part I: Bank and Nonbank Affiliates All Affiliates LA 1. Selected Financial and Operating Data of Affiliates 5 I.J 1. Selected Balance of Payments Data of All Affiliates, by Industry of Affiliate 6 I.J 2. Selected Balance of Payments Data of All Affiliates, by Country of UBO 7 Majority-Owned Affiliates LA 2. Selected Financial and Operating Data of Majority-Owned Affiliates, by Industry of Affiliate I. A 3. Selected Financial and Operating Data of Majority-Owned Affiliates, by Country of UBO LA 9. Selected Financial and Operating Data of Majority-Owned Affiliates, by State Part II: All Nonbank Affiliates Financial and Operating Data Group A. Selected Data ILA 1. Selected Financial and Operating Data of Affiliates ILA 2. Selected Financial and Operating Data of Affiliates, by Industry of Affiliate ILA 3. Selected Financial and Operating Data of Affiliates, by Country of UBO ILA 4. Number of Affiliates, Industry of Affiliate by Employment Size Class ILA 5. Number of Affiliates, Country of UBO by Employment Size Class ILA 7. Selected Financial Operating Data of Affiliates, by Country of UBO and Country of Foreign Parent ILA 10. Number of Affiliates With Property, Plant, and Equipment or Employment, State by Country of UBO Group B. Balance Sheet II. B 5. Total Assets of Affiliates, Industry of Affiliate by Country of UBO Group C. Composition of External Financia! Position II.C 1. External Financial Position of Affiliates, Selected Industry of Affiliate and Transactor by Account Group D. Property, Plant, and Equipment II.D 3. Gross Property, Plant, and Equipment of Affiliates, Industry of Affiliate by Country of UBO II.D 11. Gross Property, Plant, and Equipment of Affiliates, State by Use Group E. Income Statement II.E 3. Sales by Affiliates, Industry of Affiliate by Country of UBO Group G. Employment and Compensation of Employees II.G 3. Employment of Affiliates, Industry of Affiliate by Country of UBO II.G 19. Employment and Manufacturing Employment of Affiliates, by State Direct Investment Position and Balance of Payments Data Group K. Foreign Direct Investment Position in the United States on a Historical-Cost Basis ILK 1. Foreign Direct Investment Position in the United States on a Historical-Cost Basis, Industry of Affiliate by Account ILK 2. Foreign Direct Investment Position in the United States on a Historical-Cost Basis, Country of UBO by Account ILK 3. Foreign Direct Investment Position in the United States on a Historical-Cost Basis, Industry of Affiliate by Country of UBO Group L. Change in Foreign Direct Investment Position in the United States ILL 1. Change in the Foreign Direct Investment Position in the United States on a Historical-Cost Basis, Industry of Affihate by Account ILL 2. Change in the Foreign Direct Investment Position in the United States on a Historical-Cost Basis, Country of UBO by Account ILL 3. Direct Investment Capital Inflows, Industry of Affiliate by Country of UBO 8 9 10 13 14 17 19 22 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 VI Group M. Direct Investment Income II.M 1. Direct Investment Income, Industry of Affiliate by Component 39 II.M 2. Direct Investment Income, Country of UBO by Component 40 II.M 3. Direct Investment Income, Industry of Affiliate by Country of UBO 41 Group N. Direct Investment Royalties and License Fees and Charges for Other Services II.N 1. Direct Investment Royalties and License Fees and Charges for Other Private Services, Payments and Receipts by Affiliates, by Industry of AffiHate 42 II.N 2. Direct Investment Royalties and License Fees and Charges for Other Private Services, Payments and Receipts by Affihates, by Industry of Affiliate 43 II.N 3. Service Charges, Payments and Receipts by U.S. Affiliates, Major Industry of Affiliate and Major Area of UBO by Type 44 Part III: Majority-Owned Nonbank Affiliates Group A. Selected Data III.A L Selected Financial and Operating Data of Affiliates 47 III.A 2. Selected Financial and Operating Data of Affiliates, by Industry of Affiliate 48 III.A 3. Selected Financial and Operating Data of Affiliates, by Country of UBO 51 III.A 4. Number of Affiliates, Industry of Affiliate by Employment Size Class 53 III.A 5. Number of Affiliates, Country of UBO by Employment Size Class 56 III.A 6. Selected Financial and Operating Data of Affiliates, by Industry of UBO 57 III.A 7. Selected Financial and Operating Data of Affiliates, by Country of UBO and Country of Foreign Parent 58 III.A 8. Sales and Employment of Affiliates, by Industry of Affiliate and Industry of Sales 59 III.A 10. Number of Affiliates With Property, Plant, and Equipment or Employment, State by Country of UBO 62 Group B. Balance Sheet III.B 1. Balance Sheet of Affiliates — Assets, Industry of Affiliate by Account 63 III.B 2. Balance Sheet of Affiliates — Liabilities and Owners' Equity, Industry of Affiliate by Account 64 III.B 3. Balance Sheet of Affiliates — Assets, Country of UBO by Account 65 III.B 4. Balance Sheet of Affiliates — Liabilities and Owners' Equity, Country of UBO by Account 66 III.B 5. Total Assets of Affiliates, Industry of Affiliate by Country of UBO 67 III.B 6. Total Assets of Affiliates, Country of UBO by Industry of Affiliate 68 III.B 7. Total Assets of Affiliates, Industry of Affiliate by Industry of UBO 69 III.B 8. Total Assets of Affiliates, Country of UBO by Industry of UBO 71 III.B 9. Owners' Equity of Affiliates, Industry of Affiliate by Country of UBO 72 Group C. Composition of External Financial Position III.C 1. External Financial Position of Affiliates, Selected Industry of Affiliate and Transactor by Account 73 III.C 2. External Financial Position of Affiliates That Have UBOs in Canada, Selected Industry of Affiliate and Transactor by Account 74 III.C 3. External Financial Position of Affiliates That Have UBOs in France, Selected Industry of Affiliate and Transactor by Account 75 III.C 4. External Financial Position of Affiliates That Have UBOs in Germany, Selected Industry of Affiliate and Transactor by Account 76 III.C 5. External Financial Position of Affiliates That Have UBOs in Netherlands, Selected Industry of Affiliate and Transactor by Account 77 vtt III.C 6. External Financial Position of Affiliates That Have UBOs in Switzerland, Selected Industry of Affiliate and Transactor by Account 78 III.C 7. External Financial Position of Affiliates That Have UBOs in The United Kingdom, Selected Industry of Affiliate and Transactor by Account 79 III.C 8. External Financial Position of Affiliates That Have UBOs in lapan, Selected Industry of Affiliate and Transactor by Account 80 Group D. Property, Plant, and Equipment III.D 1. Gross Property, Plant, and Equipment of Affiliates, Industry of Affiliate by Type 81 III.D 2. Gross Property, Plant, and Equipment of Affiliates, Country of UBO by Type 82 III.D 3. Gross Property, Plant, and Equipment of Affihates, Industry of Affiliate by Country of UBO 83 III.D 4. Gross Book Value of Land, Industry of Affiliate by Country of UBO 84 III.D 5. Gross Plant and Equipment, Industry of Affiliate by Country of UBO 85 III.D 6. Opening and Closing Balances, and Change by Account, in Property, Plant, and Equipment of Affiliates, by Industry of Affiliate 86 III.D 7. Opening and Closing Balances, and Change by Account, in Property, Plant, and Equipment of Affihates, by Country of UBO 87 III.D 8. Net Property, Plant, and Equipment of Affiliates, Industry of Affiliate by Country of UBO 88 III.D 9. Gross Property, Plant, and Equipment of Affiliates, Industry of Affiliate by Use 89 III.D 10. Gross Property, Plant, and Equipment of Affiliates, Country of UBO by Use 90 III.D 11. Gross Property, Plant, and Equipment of Affihates, State by Use 91 III.D 12. Gross Property, Plant, and Equipment of Affiliates, State by Industry of Affiliate 92 III.D 13. Gross Property, Plant, and Equipment of Affiliates, State by Country of UBO 93 III.D 14. Gross Property, Plant, and Equipment of Affiliates, State by Industry of UBO 94 III.D 15. Commercial Property of Affiliates, Industry of Affiliate by Country of UBO 95 III.D 16. Commercial Property of Affihates, State by Industry of Affiliate 96 III.D 17. Commercial Property of Affiliates, State by Country of UBO 97 III.D 18. Number of Affiliates with Property, Plant, and Equipment, State by Property, Plant, and Equipment Size Class 98 III.D 19. Number of Affiliates with Property, Plant, and Equipment, State by Use 99 III.D 20. Property, Plant, and Equipment Expenditures by Affiliates, Industry of Affiliate by Type of Expenditure 100 III.D 21. Property, Plant, and Equipment Expenditures by Affiliates, Country of UBO by Type of Expenditure .... 101 III.D 22. Property, Plant, and Equipment Expenditures by Affiliates, Industry of Affiliate by Country of UBO 102 III.D 23. Expenditures for New Plant and Equipment by Affihates, Industry of Affihate by Country of UBO 103 III.D 24. Land Owned by Affiliates, by Industry of Affiliate 104 III.D 25. Land Owned by Affiliates, by Country of UBO 105 Group E. Income Statement III.E 1. Income Statement of Affiliates, Industry of Affiliate by Account 106 III.E 2. Income Statement of Affiliates, Country of UBO by Account 107 III.E 3. Sales by Affiliates, Industry of Affiliate by Country of UBO 108 III.E 4. Sales by Affiliates, Country of UBO by Industry of Affiliate 109 III.E 5. Sales by Affiliates, Industry of Affiliate, by Industry of UBO 110 III.E 6. Sales by Affiliates, Country of UBO by Industry of UBO 112 III.E 7. Sales by Affiliates, Industry of Sales by Industry of Affiliate 113 III.E 8. Sales by Affiliates, Industry of Sales by Country of UBO 117 Vlll III.E9. Sales by Affiliates, Country of UBO by Industry of Sales 118 III.E 10. U.S. IncomeTaxesof Affiliates, Industry of Affiliate by Country of UBO 119 III.E 11. Net Income of Affiliates, Industry of Affiliate by Country of UBO 120 III.E 12. Sales of Goods and Services by Affiliates, by Industry of Affiliate 121 III.E 13. Sales of Goods and Services by Affiliates, by Country of UBO 122 III.E 14. SalesofGoodsbyAffiliates, Industry of Affiliate by Country of UBO 123 III.E 15. Sales of Services by Affdiates, Industry of Affiliate by Country of UBO 124 Group F. Value Added III.E 1. Value Added of Affiliates, Industry of Affiliate by Component 125 III.E 2. ValueAddedof Affiliates, Industry of Affiliate by Country of UBO 126 III.E 3. ValueAddedof Affiliates, Country of UBO by Industry of Affiliate 127 III.E 4. Value Added of Affiliates, Industry of Affiliate by Industry of UBO 128 III.E 5. Value Added of Affiliates, Country of UBO by Industry of UBO 130 III.E 6. Profit-Type Return of Affiliates, Industry of Affiliate by Country of UBO 131 Group G. Employment and Compensation of Employees III.G 1. Employment and Compensation of Employees of Affiliates, by Industry of Affiliate 132 III.G 2. Employment and Compensation of Employees of Affiliates, by Country of UBO 133 III.G 3. Employment of Affiliates, Industry of Affiliate by Country of UBO 134 III.G 4. Employment of Affiliates, Country of UBO by Industry of Affiliate 135 III.G 5. Employment of Affiliates, Industry of Affiliate by Industry of UBO 136 III.G 6. Employment of Affiliates, Country of UBO by Industry of UBO 138 III.G 7. Employment of Affiliates, State by Industry of Affiliate 139 III.G 8. Employment of Affiliates, State by Country of UBO 140 III.G 9. Employment of Affiliates, State by Industry of UBO 141 III.G 10. Employment of Affiliates, Industry of Sales by Industry of Affiliate 142 III.G 11. Employment of Affiliates, Industry of Sales by Country of UBO 146 III.G 12. Employment of Affiliates, Country of UBO by Industry of Sales 147 III.G 13. Manufacturing Employment of Affiliates, State by Country of UBO 148 III.G 14. Affiliates' Employment Covered by Collective Bargaining Agreements, Industry of Affiliates by Country of UBO 149 III.G 15. Research and Development Employment of Affiliates, Industry of Affiliate by Country of UBO 150 III.G 16. Compensation of Employees of Affiliates, Industry of Affiliate by Country of UBO 151 III.G 17. Wages and Salaries of Affiliates, Industry of Affiliate by Country of UBO 152 III.G 18. Number of Affiliates With Employment, State by Employment Size Class 153 Group H. U.S. Trade in Goods III.H 1. U.S. Trade in Goods of Affiliates, Industry of Affiliate by Transactor 154 III.H 2. U.S. Trade in Goods of Affiliates, Country of UBO by Transactor 155 III.H 3. U.S. Exports of Goods Shipped by Affiliates, Industry of Affiliate by Country of UBO 156 III.H 4. U.S. Exports of Goods Shipped by Affiliates to the Foreign Parent Group, Industry of Affiliate by Country of UBO 157 III.H 5. U.S. Exports of Goods Shipped by AffiHates to Eoreigners Other Than the Foreign Parent Group, Industry of Affiliate by Country of UBO 158 III.H 6. U.S. Imports ofGoods Shipped to Affiliates, Industry of Affiliate by Country of UBO 159 III.H 7. U.S. Imports of Goods Shipped to Affiliates by the Foreign Parent Group, Industry of Affiliate by Country of UBO 160 IX III.H 8. U.S. Imports of Goods Shipped to Affiliates by Foreigners Other Than the Foreign Parent Group, Industry of Affiliate by Country of UBO 161 III.H 9. U.S. Trade in Goods of Affiliates, Product by Transactor 162 III.H 10. U.S. Exports of Goods Shipped by Affiliates, Industry of Affiliate by Product 163 III.H 11. U.S. Exports of Goods Shipped by Affiliates, Country of UBO by Product 164 III.H 12. U.S. Exports of Goods Shipped by Affiliates to the Foreign Parent Group, Industry of Affiliate by Product 165 III.H 13. U.S. Exports of Goods Shipped by Affiliates to the Foreign Parent Group, Country of UBO by Product 166 III.H 14. U.S. Exports of Goods Shipped by Affiliates to Foreigners Other Than the Foreign Parent Group, Industry of Affiliate by Product 167 III.H 15. U.S. Exports of Goods Shipped by Affiliates to Foreigners Other Than the Foreign Parent Group, Country of UBO by Product 168 III.H 16. U.S. Imports of Goods Shipped to Affiliates, Industry of Affiliate by Product 169 III.H 17. U.S. Imports of Goods Shipped to Affiliates, Country of UBO by Product 170 III.H 18. U.S. Imports of Goods Shipped to Affiliates by the Foreign Parent Group, Industry of Affiliate by Product 171 III.H 19. U.S. Imports of Goods Shipped to Affiliates by the Foreign Parent Group, Country of UBO by Product 172 III.H 20. Imports of Goods Shipped to Affiliates by Foreigners Other Than the Foreign Parent Group, Industry of Affiliate by Product 173 III.H 21. Imports of Goods Shipped to Affiliates by Foreigners Other Than the Foreign Parent Group, Country of UBO by Product 174 III.H 22. U.S. Trade in Goods of Affiliates, Country of Destination or Origin by Transactor 175 III.H 23. U.S. Exports of Goods Shipped by Affiliates, Country of Destination by Industry of Affiliate 176 III.H 24. U.S. Exports of Goods Shipped by Affiliates, Country of Destination by Country of UBO 177 III.H 25. U.S. Exports of Goods Shipped by Affiliates to the Foreign Parent Group, Country of Destination by Industry of Affiliate ! 178 III.H 26. U.S. Exports of Goods Shipped by Affiliates to the Foreign Parent Group, Country of Destination by Country of UBO 179 III.H 27. U.S. Exports of Goods Shipped by Affiliates to Foreigners Other Than the Foreign Parent Group, Country of Destination by Industry of Affiliate 180 III.H 28. U.S. Exports of Goods Shipped by Affiliates to Foreigners Other Than the Foreign Parent Group, Country of Destination by Country of UBO 181 III.H 29. U.S. Imports of Goods Shipped to Affiliates, Country of Origin by Industry of Affiliate 182 III.H 30. U.S. Imports of Goods Shipped to Affiliates, Country of Origin by Country of UBO 183 III.H 31. U.S. Imports of Goods Shipped to Affiliates by the Foreign Parent Group, Country of Origin by Industry of Affiliate 184 III.H 32. U.S. Imports of Goods Shipped to Affiliates by the Foreign Parent Group, Country of Origin by Country of UBO 185 III.H 33. U.S. Imports of Goods Shipped to Affiliates by Foreigners Other Than the Foreign Parent Group, Country of Origin by Industry of Affiliate 186 III.H 34. U.S. Imports of Goods Shipped to Affiliates by Foreigners Other Than the Foreign Parent Group, Country of Origin by Country of UBO 187 III.H 35. U.S. Imports of Goods Shipped to Affiliates, Industry of Affiliate by Transactor and Intended Use 188 III.H 36. U.S. Imports of Goods Shipped to Affiliates, Country of UBO by Transactor and Intended Use 189 III.H 37. U.S. Imports of Goods Shipped to Affiliates — Goods for Further Manufacture, Industry of Affiliate by Country of UBO 190 X Group I. Interest, Dividends, Taxes Other Than Income Taxes, and Research and Development Expenditures III. I 1. Interest, Dividends or Remitted Profits, and Taxes Other Than Income and Payroll Taxes, of Affiliates, by Industry of Affiliate 191 III. I 2. Interest, Dividends or Remitted Profits, and Taxes Other Than Income and Payroll Taxes, of Affiliates, by Country of UBO 192 III. I 3. Taxes Other Than Income and Payroll Taxes Paid by Affiliates, Industry of Affiliate by Country of UBO 193 III. I 4. Research and Development Funded by and Performed by Affiliates, by Industry of Affiliate 194 III. I 5. Research and Development Funded by and Performed by Affiliates, by Country of UBO.......... 195 III. I 6. Research and Development Performed by Affiliates, Industry of Affiliate by Country of UBO 196 Group J. Selected Balance of Payments Data III. J 1. Selected Balance of Payments Data, by Industry of Affiliate 197 III.J 2. Selected Balance of Payments Data, by Country of UBO 198 Part IV: Bank Affiliates All Bank Affiliates IV.A 1. Selected Financial and Operating Data of All Bank Affiliates 201 IV.l 2. Selected Balance of Payments Data of All Bank Affiliates, by Country of UBO 202 Majority-Owned Bank Affiliates IV.A 3. Selected Financial and Operating Data of Majority-Owned Bank Affiliates by Country of UBO 203 IV.A 9. Selected Financial and Operating Data of Majority-Owned Bank Affiliates by State 204 IV.A 10. Number of Majority-Owned Bank Affiliates With Property, Plant, and Equipment or Employment, State by Country of UBO 205 IV.A 16. Sales of Services by Majority-Owned Bank Affiliates by Country of UBO 206 Appendix A Form BE-12 Instructions • 221 FormBE-12 (X) 231 Form BE-12 (Long Form) 233 Form BE-12 (Short Form) • 263 Form BE-12 BANK • • 283 Appendix B BEA Guide to Industry and Foreign Trade Classifications for International Surveys, 2002 299 XI Methodology THE 2002 Benchmark Survey of Foreign Direct In- vestment in the United States was conducted by the Bureau of Economic Analysis (BEA) to obtain complete and accurate data on foreign direct invest- ment in the United States in 2002. Reporting in the survey was mandatory under the International Invest- ment and Trade in Services Survey Act.' Benchmark surveys, which are conducted every five years, are BEA's most comprehensive surveys of foreign direct in- vestment, in terms of both coverage of companies and the amount of information collected; the last bench- mark survey covered the year 1997.' This publication presents the final results of the 2002 benchmark survey in 173 tables that contain nearly all the data collected. Two related types of data for U.S. affiliates of foreign companies are presented: (1) Financial and operating data, and (2) direct invest- ment position and balance of payments data. The financial and operating data provide a variety of indi- cators of the overall operations of U.S. affiliates, including balance sheets and income statements; value added; sales of goods and services; external financial position; taxes; property, plant, and equipment; employment and compensation of employees; U.S. trade in goods; research and development activities; and U.S. land owned. The direct investment position and balance of pay- ments data cover transactions and positions between U.S. affiliates and their foreign parent groups. These data are the source of the official estimates of direct investment that enter the U.S. national income and product accounts (NIPAs) and the U.S. international investment position and international transactions (or balance of payments) accounts. Balance of payments data include data on capital flows between U.S. affili- ates and their foreign parent groups that are recorded in the financial account of the balance of payments, payments of income by U.S. affiliates to their foreign parent groups, and U.S. affiliates' payments and receipts of royalties, license fees, and charges for other services to and from their foreign parent groups. The direct investment capital flows, income, and position data collected in the benchmark survey and shown in this publication are on a historical-cost basis; prior to their inclusion in the international accounts and the NIPAs they are adjusted to reflect current-period prices. The amount and type of data collected in the survey differed, depending on whether the U.S. affiliates were banks or nonbanks, and for nonbank affiliates, whether they were majority or minority owned.^ In this publication, data for U.S. affiliates are presented separately for four affihate groups: (1) All affiliates (shown in Part I), (2) all nonbank affihates (Part II), (3) majority-owned nonbank affiliates (Part III), and (4) bank affiliates (Part IV). Most of the tables cover majority-owned nonbank affiliates. Bank affiliates were required to report only a limited amount of data in the benchmark survey. For nonbank affiliates, more detailed data on affiliate operations were collected for majority-owned affiliates than for minority-owned affiliates. For consistency in presentation, most of the tables for bank affiliates in this publication cover majority- owned affiliates. A variety of table formats are used: Some tables present data for several related items, each of which is disaggregated by industry, country, or state; other tables present data for a single item disaggregated by industry cross-classified by country, by country cross-classified by industry, or by state cross-classified by country. The financial and operating data for nonbank affili- ates presented in this publication extend estimates that begin with the year 1977 and that are derived from 1. Public Law 472, 94* Cong., 90 Stat. 2059, 22 U.S.C. 3101-3108, as amended. 2. See U.S. Bureau of Economic Analysis, Foreign Direct Investment in the United States: Final Results From the 1997 Benchmark Survey (Washington, DC: U.S. Government Printing Ofifice, June 2001); an electronic version of this publication can be accessed on BEA's Web site at . 3. In this publication, the term "bank affiliates" is used to describe all the affiliates that are classified under the BEA international surveys industry category "depository credit intermediation," which includes bank holding companies, credit unions, and savings institutions, as well as commercial banks. Beginning with the 2002 benchmark survey, the data reported for a bank affiliate include, in a single consolidated report, any data for nonbank U.S. companies that are more than 50-percent owned by the bank affiliate. In previous benchmark and annual surveys, nonbank companies that were more than 50-percent owned by bank affiliates were required to file sepa- rately in the reports for nonbank affiliates. M-1 M-2 Methodology FDIUS: 2002 Benchmark Survey both annual and benchmark surveys. "* Table 1 presents selected financial and operating data for all nonbank U.S. affiliates from the 2002 benchmark survey and from the previous benchmark and annual surveys. Tabular data from the earlier surveys are available on BEA's Web site at . In a departure from BEA's previous surveys of U.S.- affiliate operations, the data collected and tabulated from the 2002 benchmark survey provide more detailed information on the operations of majority- owned U.S. affiliates (that is, affiliates that are owned more than 50 percent by foreign direct investors) than on the operations of all (majority-owned plus minor- ity-owned) U.S. affiliates. This change reflects a shift in emphasis in the U.S. -affiliate financial and operating data to companies that are unambiguously under for- eign control. Because of the presumption of foreign control, majority ownership is viewed by many as the preferred basis for selecting firms for the analysis of the role of multinational enterprises in a host country's economy.^ It is also recommended as the primary basis for the compilation of statistics on the operations of foreign-owned firms by the Organisation for Eco- nomic Co-operation and Development's OECD Hand- book on Economic Globalisation Indicators and by the 4. Estimates for nonbenchmark survey years from BEA's annual surveys provide information similar to that collected in the benchmark surveys, but are less detailed. 5. See, for example, Robert E. Lipsey, "Foreign Direct Investment and the Operations of Multinational Firms: Concepts, History, and Data," in Hand- book of International Trade, ed. Kwan Choi and James Harrigan (Oxford, United Kingdom: Basil Blackwell, 2003). international Manual on Statistics of International Trade in Services, reflecting in part the emphasis given to data on majority-owned affiliates by trade negotia- tors and other policy makers. Table 2 identifies the financial and operating data tables in this report that have counterparts in the benchmark-survey report for 1997 or in the annual data reports for 1998-2001. It also provides cross-ref- erences between the table numbers used in the reports. Because of the shift in emphasis to data on majority- owned affiliates, many of the tables in this report do not have exact counterparts in earlier reports, which mainly presented data for all nonbank affiliates. How- ever, most of the tables for majority-owned nonbank affiliates in this report are comparable to tables for all nonbank affiliates in earlier reports. Table 3 provides cross-references between the tables on majority-owned nonbank affiliates in this report and the corresponding tables on all nonbank affiliates in the reports for 1997- 2001. Certain tables in this publication have counterparts in the earlier benchmark survey reports but not in the annual survey reports, because they cover items that are not collected in the annual surveys. For example, the benchmark surveys collect direct investment posi- tion and balance of payments data in addition to the financial and operating data collected in the annual surveys for nonbenchmark years. In addition, some items in the financial and operating data for U.S. affili- ates — such as the number of employees covered by collective bargaining agreements and U.S. exports and Table 1. Selected Financial and Operating Data of Nonbank U.S. Affiliates of Foreign Companies, 1977-2002 Millions of dollars Thousands of employees Millions of dollars Total assets Gross property, plant, and equipment Sales Net income ' Compensation of employees U.S. exports of goods shipped by affiliates U.S. imports of goods shipped to affiliates 1977 1978 143,488 181,187 228,556 291,339 406,985 476,439 531,738 602,522 741,077 838,039 943,654 1,200,823 1,431,315 1,550,238 1,752,628 1,825,219 2,065,804 2,206,701 2,388,724 2,681,745 3,071,483 3,534,509 4,177,211 4,893,942 5,436,996 5,229,812 66,785 80,683 101,209 127,838 187,956 225,235 244,012 269,462 295,181 320,215 353,278 418,069 489,461 578,355 640,140 660,826 705,665 754,383 769,491 825,695 877,568 990,332 1,075,364 1,175,628 1,181,091 1,192,710 193,991 241,543 327,870 412,390 510,218 518,087 536,640 593,571 632,983 672,004 744,617 886,407 1,056.645 1,175,857 1,185,858 1,231.972 1.329,435 1,443.489 1,544,603 1,667,619 1,726,344 1,875,489 2,044.359 2,334,692 2,327,091 2,216,530 3,966 4,843 7,301 8,759 11,234 3,830 5,584 9,605 5,398 2,458 7,820 12,049 9,286 -4,535 -11,018 -21,331 ^.354 8.132 15.493 24,379 40.924 32.312 26.576 34.593 -44.894 -57,011 18,781 24,225 31,686 40,047 54,798 61,487 66,807 73,155 79,933 86,492 96,009 119,588 144,158 163,592 175,969 182,079 193,000 200,615 206,354 220,637 233,482 262,112 292,727 332,164 344,730 341,935 1,218.7 1,429.9 1,753.2 2,033.9 2,416.6 2,448.1 2,546.5 2,714.3 2,862.2 2,937.9 3,224.3 3,844.2 4,511.5 4,734.5 4,871.9 4,715.4 4,765.6 4,840.5 4,941,8 5,105.0 5,201.9 5,646.1 6,027.6 6,524.6 6,268.3 5,925.1 24,858 32,169 44.341 52.199 64.066 60.236 53.854 58.186 56.401 49.560 48.091 69.541 86.316 92,308 96,933 103,925 106,615 120,683 135,153 140,886 141,305 151,005 153,572 164,673 157,459 150.147 43.896 56 567 1979 63 039 1980 75 803 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 82.259 84,290 81,464 100,489 113,331 125,732 143,537 155,533 171,847 182,936 178,702 184,464 200,599 232,362 250,824 268,673 264,924 292,046 324,994 372,164 347,823 348,111 1. Includes capital gains and losses. Note. Time-series data on the operations ol nonbank U.S. affiliates can be accessed on BEA"s Web site at www.bea.gov; from the home page, click on "Direct Investment". FDIUS: 2002 Benchmark Survey Methodology M-3 imports of goods by product and by country of desti- nation or origin — are collected only in benchmark surveys. In a few instances, an item collected in the bench- mark survey was combined with one or more other items in the annual surveys. Thus, two items that are shown in a table in this publication may be shown as only one item in the corresponding table in the annual survey publications. The data in this publication are based on data col- lected at the enterprise — or company — level. Data pre- sented on the establishment — or plant — level are also available for selected years as a result of a project to link BEA's enterprise data on foreign direct investment in the United States with more detailed Census Bureau establishment data for all U.S. companies.^ 6. Publications presenting the establishment data are available for 1987- 92 and 1997; electronic files for these publications can be accessed on BEA's Web site at . The 1987, 1992, and 1997 publications cover establishments in both manufacturing and non- manufacturing industries; the 1988-91 publications cover establishments in manufacturing industries only. A forthcoming publication will present establishment data for both manufacturing and nonmanufacturing indus- tries in 2002. Table 2. Comparison of Tables for Nonbank Affiliates in This Report With Those in the 1997 Benchmark Survey Report and in the Reports for 1998-2001 Table in 2002 benchmark survey report Comparable table in 1997 benchmark survey report Comparable table in 1998-2001 reports Part II. All Nonbank Affiliates Group A. Selected Data 1I.A1 J-1 J-1 II.A2-II.A3 A-1-A-2 A-1-A-2 II.A4— II.A5 n.a. n.a. II.A7 A-7 A-7 II.A10 A-9 A-9 Group 6. Balance Sheet II.B5 B-5 B-5 Group C. Composition of External Financial Position II.C1 0-1 C-1 Group D. Gross Property, Plant, and Equipment II.D3 D-3 D-3 II.D11 D-11 D-11 Group E. Income Statement II.E3 E-3 E-3 Group G. Employment and Compensation of Employees ll,G3 G-3 G-3 11.619 G-8 (Part), G-13 (Part) G-8 (Part), G-13 (Part) Part III. Majority-Owned Nonbank Affiliates' Group A. Selected Data III.A1 J-1 J-1 III.A2-III.A3 J-2-J-3 J-2-^-3 III.A8 J^ J^ Group 6. Balance Sheet III.B5 J-5 J-5 Group E. Income Statement III.E3 J-6 J-6 Group F. Value Added III.F2 J-7 J-7 Group G. Employment and Compensation of Employees III.G3 J-8 J-8 III.G 8 (Part), III.G 13 (Part) J-9 J-9 Group H. U.S. Trade in Goods III.H1-III.H2 J-1 0-^-11 J-1 0-^-11 III.H22 J-1 2 n.a. Group 1. Interest, Dividends, Taxes Other Than Income Taxes, and Research and Development Expenditures 111.16 J-1 3 J-1 3 n.a. Not available 1 . Tables in Part II Note. Time-series I that have counterparts in reports for earlier years. data on the operations of nonbank U.S. affiliates can be accessed on BEA's Web site at www.bea.gov; from the home page, click on "Direct Investment." M-4 Methodology FDIUS: 2002 Benchmark Survey Table 3. Comparison of Tables for Majority-Owned Nonbank Affiliates in This Report With Those for All (Majority-owned plus Minority-owned) Nonbank Affiliates in the 1997 Benchmark Survey Report and in the Reports for 1998-2001 Table for majority-owned nonbank affiliates in 2002 bencfimark survey report Comparable table for all nonbank affiliates in 1997 bencfimark survey report Comparable table for all nonbank affiliates in 1998-2001 reports Group A. Selected Data III.A1 n.a. n.a. III.A2-III.A3 A-1-A-2 A-1-A-2 lil.A4-III.A5 n.a. n.a. III.A6-III.A8 A-6-A-8 A-6-A-8 III.A10 A-9 A-9 Group B. Balance Sheet IILB1-IILB6 B-1-B-6 B-1-B-6 III.B7-III.B9 B-7-B-9 n.a. Group C. Composition of External Financial Position III.C1 C-1 G-1 lll.C2-lll.C8 C-2-C-8 n.a. Group D. Gross Property, Plant, and Equipment III.D1-III.D3 D-1-D-3 D-1-D-3 III.D4-III.D5 D-4— D-5 n.a. III.D6-III.D7 D-6-D-7 D-6-D-7 III.D8 D-8 n.a. III.D9-III.D13 D-9-D-13 D-9-D-13 III.D14-III.D15 D-14— D-15 n.a. III.D16 D-16 D-16 III.D17-III.D23 D-17-D-23 D-17-D-23 III.D24-III.D25 D-24-D-25 D-24-D-25 Group E. Income Statement III.E1-III.E4 E-1-E-4 E-1-E-4 lll,E5-III.E6 E-5-E-6 n.a. III.E7-III.E8 E-7-E-8 E-7-E-8 ill.E9 E-9 n.a. III.E10-III.E15 E-10-E-15 E-10-E-15 Group F. Value Added III.F1-III.F3 F-1-F-3 F-1-F-3 III.F4 F-4 n.a. III.F5-III.F6 F-5-F-6 F-5-F-6 Group G. Employment and Compensation of Employees III.G1-III.G4 G-1-G-4 G-1-G^ III.G5 G-5 n.a. III.G 6-III.G 8 G-6-G-8 G-6-G-8 III.G9 G-9 n.a. lil.G10-lll.G11 G-10-G-11 G-10-G-11 III.G 12 G-12 n.a. III.G 13 G-13 G-13 III.G 14 G-14 n.a. III.G 15-III.G 18 G-15-G-18 G-15-G-18 Group H. U.S. Trade In Goods III.H1-III.H4 H-1-H-4 H-1-H^ III.H5 H-5 n.a. III.H6-III.H7 H-6-H-7 H-6-H-7 III.H8-III.H36. H-8-H-36 n.a. III.H37 H-37 H-37 Group 1. Interest, Dividends, Taxes Other Than Income Taxes, and Research and Development Expenditures III.I1-III.I2 1-1-1-2 1-1-1-2 lll.l 3-III.I 5 1-3-1-5 n.a. 111.16 1-6 1-6 n.a. Not available Note. Time-series (fata on Ifie operations of nonbank U.S. affiliates can be accessed on BEA's Web site at www.bea.gov: from ttie home page, click on "Direct Investment." FDIUS: 2002 Benchmark Survey Methodology M-5 Coverage The benchmark survey covered every U.S. business en- terprise that was a U.S. affiliate of a foreign person. A U.S. affiliate is a U.S. business enterprise in which a foreign person owns or controls, directly or indirectly, at least 10 percent of the voting securities if the enter- prise is incorporated or an equivalent interest if the en- terprise is unincorporated. For both the financial and operating data and the direct investment position and balance of payments data, the data presented in this publication cover every U.S. business enterprise that was a U.S. affiliate at the end of its 2002 fiscal year. The coverage of the direct investment position and balance of payments data in this publication is thus consistent with that of the financial and operating data. However, it differs from the coverage of these data in the U.S. international investment position and international transactions accounts, which, for a given calendar year, include transactions for U.S. businesses that were U.S. affiliates some time during the year but that were not affiliates at the end of the year, because the foreign parents' interest in them was liquidated or sold during the year. In addition, the direct investment position figures for 2001 shown in this publication cover only U.S. busi- nesses that remained affiliates at the end of their 2002 fiscal year. U.S. affiliates with total assets, sales, or net income (or loss) greater than $10 million were required to complete a benchmark survey report for 2002. Affili- ates that did not meet these criteria were exempt from reporting, but they had to file an exemption form with information on their total assets, sales, and net income. In the benchmark surveys for 1980, 1987, and 1992, the exemption level for reporting was $1 million; in the benchmark survey for 1997, the exemption level was $3 million. The exemption level for 2002 was raised to $10 million in order to reduce the reporting burden of small enterprises. For the 2002 benchmark survey, exemption claims were filed by 8,717 affiliates, compared with 5,932 affil- iates that were required to report. In terms of value, however, the data for exempt affiliates were minuscule relative to the data totals for the direct investment uni- verse: Together, they accounted for 0.2 percent of the total assets and 0.4 percent of the sales of all affiliates (table 4).^ Consistent with the benchmark survey publication for 1997, the data presented in this publication include estimates for exempt affiliates as well as data for U.S. affiliates that were required to complete a benchmark survey report. In contrast, estimates for exempt affili- ates were not included in the published data for affili- ates for years before 1997. Because the data for exempt affiliates are so small, this difference has virtually no effect on comparability with the published data across years. Concepts and Definitions This section discusses the basic concepts and defini- tions used in the 2002 benchmark survey. Direct investment Direct investment implies that a person in one country has a lasting interest in, and a degree of influence over the management of, a business enterprise in another country. For the United States, in accordance with in- ternational guidelines, ownership or control of 10 per- cent or more of an enterprise's voting securities, or the equivalent, is considered evidence of such a lasting in- terest or degree of influence over management.** Thus, foreign direct investment in the United States is own- ership or control, direct or indirect, by one foreign person of 10 percent or more of the voting securities of an incorporated U.S. business enterprise or an equiva- lent interest in an unincorporated U.S. business enter- prise. Only foreign investment in the United States that is direct investment was covered by the 2002 bench- mark survey. Direct investment in a U.S. business enterprise can result from direct or indirect ownership by a foreign person. In direct ownership, the foreign person itself holds the ownership interest in the U.S. business enter- prise. In indirect ownership, one or more tiers of own- ership exist between the U.S. business enterprise and the foreign person. For example, a U.S. business enter- prise may be directly owned by another U.S. business enterprise that is, in turn, owned by the foreign per- son. A foreign person's percentage of indirect voting ownership in a given U.S. business enterprise is equal to the direct-voting-ownership percentage of the 8. See International Monetary Fund (IMF), Balance of Paytnents Manual, 5th ed. (Washington, DC: IMF, 1993); and Organisation for Economic Co- operation and Development (OECD), OECD Benchmark Definition of For- eign Direct Investment, 3rd ed, (Paris: OECD, 1996). Table 4. Total Assets and Sales of U.S. Affiliates by Their Reporting Requirement in the Benchmark Survey 7. Because of limited resources, BEA cannot verify that exemption forms were filed by all affiliates that were below the threshold for submitting benchmark survey reports. However, because of their small size, the effect of any noncompliance by exempt affiliates on the benchmark survey data in terms of value is likely to be negligible. Millions of dollars Percent Total assets Sales Total assets Sales All affiliates 7,438,863 7,424,268 14,594 2,368,402 2,357,869 10,532 100.0 99.8 0.2 100.0 Required to report Exempt from reporting 99.6 0.4 M-6 Methodology FDIUS: 2002 Benchmark Survey foreign person in the first U.S. business enterprise in means the 50 States, the District of Columbia, the the ownership chain, times the first enterprise's Commonweahh of Puerto Rico, and all U.S. territories direct-voting-ownership percentage in the second U.S. and possessions. U.S. offshore oil and gas sites are also business enterprise in the chain, times the correspond- considered to be in the United States. ing percentages for all intervening enterprises in the "Foreign" means that which is situated outside the chain, times the last intervening enterprise's United States or which belongs to, or is characteristic direct-voting-ownership percentage in the given U.S. of, a country other than the United States. business enterprise. If more than one ownership chain The country of residence, rather than the country of exists, the percentages of direct and indirect ownership citizenship, of a person is used to determine whether a in all chains are summed to determine the foreign per- direct investor or the business enterprise owned by a son's ownership percentage. direct investor is U.S. or foreign. A U.S. person is any Direct investment refers to ownership by a single person who resides in, or is subject to the jurisdiction person, not to the combined ownership by all the per- of, the United States, and a foreign person is any per- sons in a country. A "person" is broadly defined to son who resides outside the United States or who is include any individual, branch, partnership, associated subject to the jurisdiction of a country other than the group, association, estate, trust, corporation, or other United States. organization (whether or not organized under the laws A person is considered a resident of, or subject to of any state) and any government (including a foreign the jurisdiction of, the country in which the person is government, the U.S. Government, a state or local gov- located if the person resides or expects to reside in it ernment, or any corporation, financial institution, or for 1 year or more. Under this rule, individuals who other entity or instrumentality thereof, including a reside or expect to reside outside their country of citi- government-sponsored agency). zenship for less than 1 year are considered residents of An associated group is treated in this definition as a their country of citizenship, whereas individuals who single person. An associated group consists of two or reside or expect to reside outside their country of citi- more persons who exercise their voting privileges in a zenship for 1 year or more are considered residents of concerted manner — by the appearance of their actions, the country in which they are residing, by agreement, or by an understanding — in order to There are two exceptions to this rule. First, individ- influence the management of a business enterprise, uals (and their immediate families) who either own or The following are deemed associated groups: ( 1 ) are employed by a business enterprise in their country Members of the same family, (2) a business enterprise of citizenship and who are residing outside of that and one or more of its officers or directors, (3) mem- country for 1 year or more in order to conduct busi- bers of a syndicate or joint venture, and (4) a corpora- ness for the enterprise are considered residents of their tion and its domestic subsidiaries. Thus, direct country of citizenship if they intend to return within a investment is considered to exist as long as the com- reasonable period of time. Second, individuals who bined ownership interest of all members of the group reside outside their country of citizenship because they is at least 10 percent, even if no one member owns 10 are government employees (such as diplomats, consu- percent or more. The definition assumes, in effect, that lar officials, members of the armed forces, and their the members' influence over management is compara- immediate families) are considered residents of their ble to that of a single person with the same ownership country of citizenship regardless of their length of stay, interest. Investment by a foreign person of less than 10 per- The U.S. affiliate cent in a U.S. business enterprise is not considered A U.S. affiliate is a U.S. business enterprise in which direct investment, even if another foreign person — of there is foreign direct investment. The affiliate is called the same country or of another country — has an inter- a U.S. affiliate to denote that it is located in the United est of at least 10 percent in the enterprise. Thus, if one States. foreign person owns 1 1 percent and another owns 9 A business enterprise is any organization, associa- percent, the 11 -percent interest is included, but the tion, branch, venture, or the ownership of real estate 9-percent interest is excluded. However, if two or more that exists for profitmaking purposes or to otherwise foreign persons each hold an interest of at least 10 per- secure economic advantage. Therefore, by definition, a cent, each such interest is included. business enterprise excludes the ownership of real estate exclusively for personal use; a residence that is Determination of residency leased to others by an owner who intends to reoccupy For purposes of the benchmark survey (and BEA's it is considered real estate held for personal use and not other direct investment surveys), the "United States" a business enterprise. FDIUS: 2002 Benchmark Survey Methodology M-7 A business enterprise, and therefore an affiliate, may relations activities. be either incorporated or unincorporated. Unincorpo- 6. Its expenses are paid by the foreign person, rated affiliates primarily take the form of branches and Consistent with these guidehnes, the U.S. stations, partnerships. They may also include directly held com- ticket offices, and terminal or port facilities of a foreign mercial property. airline or ship operator that provide services only to A U.S. affiliate that is a branch consists of operations the airline's or ship operator's operations are not Con- or activities in the United States that a foreign person sidered U.S. affiliates, because most of the revenues, conducts in its own name rather than through an such as passenger fares and freight charges, collected entity separately incorporated in the United States. By by these facilities are generated by the travel and trans- definition, a branch is wholly owned. portation services rendered by the airline or ship oper- In general, the U.S. operations or activities of a for- ator of which they are a part, not by the activities of eign person are considered to be a U.S. affiliate if they these facilities. However, if the facilities provide ser- are legally or fiinctionally separable from the foreign vices to unaffiliated persons, they are considered U.S. operations or activities of the foreign person. In most affiliates. cases, it is clear whether the U.S. operations or activi- Each U.S. affiliate was required to report on a fully ties constitute a U.S. affiliate. If an operation or activity consolidated domestic (U.S.) basis. The full consolida- is incorporated in the United States — as most are — it is tion includes all other U.S. affiliates of the foreign par- a/ways considered a U.S. affiliate. The situation is not ent in which the affiliate directly or indirectly owned always so clear with unincorporated U.S. operations or more than 50 percent of the outstanding voting inter- activities. Most are legally or functionally separable ests. The consolidation excludes all other U.S. business from those of the foreign person and thus are consid- enterprises and all foreign business enterprises owned ered U.S. affiliates, but some are not clearly separable, by the U.S. affiliate. and the determination of whether they constitute U.S. There were two exceptions to this general consolida- affiliates is made on a case-by-case basis, depending on tion rule. First, a given U.S. affiliate may have been the weight of evidence. The following characteristics excluded from full consolidation because of the lack of would indicate that the unincorporated operation or effective control. Second, a U.S. affiliate in which a activity probably is a U.S. affiliate: direct ownership interest was held by one foreign per- 1. It is subject to U.S. income taxes. son and an indirect ownership interest was held by 2. It has a substantial physical presence in the another foreign person was not permitted to be con- United States, as evidenced by plant and equip- solidated in the report of another U.S. affiliate; this ment or employees that are permanently located rule ensured that data on transactions and positions of in the United States. both owners could be obtained from the affiliate. 3. It has separate financial records that allow the preparation of financial statements, including a The foreign owners balance sheet and income statement. (A mere The existence of direct investment in a U.S. affiliate is record of disbursements to, or receipts from, the determined solely on the basis of the voting shares (or U.S. operation or activity would not constitute a the equivalent) held by its foreign parent. To more "financial statement" for this purpose.) completely describe the foreign ownership of a U.S. af- 4. It takes title to the goods it sells and receives filiate, however, reference must be made to two addi- revenues from the sale, or it receives funds from tional entities — the foreign parent group and the customers for its own account for services it ultimate beneficial owner (UBO). AW three concepts are performs. necessary to identify fully the owners of U.S. affiliates. The following characteristics would indicate that The foreign parent of a U.S. affiliate must be identified the unincorporated operation or activity probably is to establish that foreign direct investment does in fact not a U.S. affiliate: exist. The UBO of each U.S. affiHate is identified to de- 1. It is not subject to U.S. income taxes. termine the person that ultimately owns or controls 2. It has limited physical assets or few employees and, therefore, ultimately derives the benefits from permanently located in the United States. owning or controlling the U.S. affiliate.'' Members of 3. It has no separate financial records that allow the foreign parent group are identified to distinguish the preparafion of financial statements. foreign persons that are affiliated with a U.S. affiliate 4. It conducts business in the United States only from those that are not. for the foreign person's account, not for its own account. 9 ubOs that are individuals were not required to be identified by name; 5. It engages only in sales promotion or public however, their countries of location were required. M-8 Methodology FDIUS: 2002 Benchmark Survey The affiliate's transactions with all these persons are eign parent's ownership chain, that owns more than 50 included in the investment income, services, and percent of the person below it, up to and including the financial accounts of the U.S. international transac- UBO, and (3) any foreign person, proceeding down tions accounts, and the direct investment positions in the ownership chain(s) of each of these members, that the affiliate that are held by all members of the foreign is owned more than 50 percent by the person above it. parent group, not just by its foreign parent, are included in the foreign direct investment position in Accounting Principles the United States.'" In most cases, data in the 2002 benchmark survey were A given U.S. affiliate may have more than one own- required to be reported as they would have been for ership chain above it, if it is owned at least 10 percent stockholders' reports rather than for tax or other pur- by more than one foreign person. In such cases, the poses. Thus, U.S. generally accepted accounting princi- affiliate may have more than one foreign parent, UBO, pies (GAAP) were followed unless otherwise indicated and foreign parent group. by the survey instructions. The survey instructions de- A foreign parent is the first person outside the parted from GAAP in cases where the departure would United States in a U.S. affiliate's ownership chain that result in data that were conceptually or analytically has a direct investment interest in the affiliate. By this more useful or appropriate for direct investment pur- definition, the foreign parent consists only of the first poses. One major departure from GAAP was in the person outside the United States in the affiliate's own- area of consolidation rules (see the preceding discus- ership chain; all other affiliated foreign persons are sion of consolidated reporting for "The U.S. affiliate" excluded. in the section "Concepts and Definitions"). The ultimate beneficial owner (UBO) of a U.S. affili- ate is that person, proceeding up the affiliate's owner- FiSCal iGar Reporting ship chain beginning with and including the foreign Data for U.S. affiliates were required to be filed on a parent, that is not owned more than 50 percent by fiscal year basis. An affiliate's 2002 fiscal year was de- another person. The UBO excludes other affiliated fined to be the affiliate's financial reporting year that persons. If the foreign parent is not owned more than ended in calendar year 2002. Because the fiscal year 50 percent by another person, the foreign parent and data from the benchmark survey that are presented in the UBO are the same. Unlike the foreign parent, the this publication are not identical to the calendar year UBO may be either a U.S. person or a foreign person estimates that are needed for the U.S. international (though most are foreign). transactions accounts and in the foreign direct invest- Both the foreign parent and the UBO are "persons." ment position in the United States, these data must be Thus, they may be business enterprises; religious, char- adjusted to a calendar year basis before they are en- itable, or other nonprofit organizations; individuals; tered into the international transactions and foreign governments; estates or trusts; associated groups; and direct investment position accounts, so forth. In the case of a foreign estate, the estate, not The extent of the noncomparability between the its beneficiary, is considered the foreign parent or benchmark survey data presented here and the direct UBO. For the investments of a foreign trust, either the investment estimates presented in the international creator or the beneficiary of the trust may be consid- transactions and foreign direct investment position ered the foreign parent or UBO, depending on the cir- accounts depends on the number and size of, and vola- cumstances. The creator is considered the foreign tility of the data for, the U.S. affiliates whose fiscal years parent or UBO if the creator is a corporation or other do not correspond to the calendar year. Selected data organization that designates its own shareholders or for affiliates classified by the affiliates' fiscal year end- members as beneficiaries or if there is a reversionary ing date are shown in table 5. As indicated in the interest^ — that is, the interest in the trust may later be addendum to the table, affiliates whose fiscal year returned to the creator. In all other cases, the benefi- exactly corresponded to the calendar year 2002 ciary of the trust is considered the foreign parent or accounted for most of the foreign direct investment UBO. position and direct investment income for all affiliates. A foreign parent group consists of (1) the foreign Unlike the direct investment position and balance of parent, (2) any foreign person, proceeding up the for- payments data, financial and operating data in all BEA surveys are consistently collected and published on a 10. Another type of transaction — trade in goods between affiliates and r- i i • members of their foreign parent groups — is also included in the U.S. inter- tlSCal year DaSlS. national transactions accounts, but it is not shown separately. Separate data on such trade, however, were obtained in the benchmark survey as part of Conf identialltV the U.S. -affiliate financial and operating data; see the section "Financial and Operating Data." Under the International Investment and Trade in FDIUS: 2002 Benchmark Survey Methodology M-9 Services Survey Act, the direct investment data col- lected by BEA from individual respondents are confi- dential; thus, they cannot be published in such a manner "that the person to whom the information re- lates can be specifically identified." For this publica- tion, each cell in a table was tested to determine whether the data it contained should be suppressed (not be shown) for confidentiality reasons. A "(D)" in a cell indicates that the data were suppressed to avoid the disclosure of information on an individual com- pany. For employment data, a letter representing a size range is entered in lieu of a "(D)." The act further specifies that the data must be used for statistical and analytical purposes only; the use of an individual company's data for tax, investigative, or regulatory purposes is prohibited. Access to the data is limited to officials and employees (including consult- ants and contractors and their employees) of govern- ment agencies designated by the President to perform functions under the act. In addition, as amended by the Foreign Direct Investment and International Financial Data Improvements Act of 1990, the act grants access to certain other government agencies for limited statistical purposes. For example, access is granted to the Bureau of the Census for the purpose of Hnking BEA's enterprise-, or company-, level data for foreign direct investment to the Census Bureau's estab- lishment-, or plant-, level data for all U.S. companies to obtain more detailed data by industry and by state for the foreign-owned enterprises that report to BEA. A separate act, the Confidentiality Information Protec- tion and Statistical Efficiency Act of 2002 (Title V of Public Law 107-347), also authorizes the sharing of business confidential data (including BEA's direct investment data) between BEA, the Census Bureau, and the Bureau of Labor Statistics under specified con- ditions for statistical purposes. Private individuals may obtain access to the data only in the capacity of experts, consultants, or contrac- tors whose services are procured by BEA, usually on a temporary or intermittent basis, for purposes of carry- ing out projects under the Survey Act — for example, to perform research on foreign direct investment. These people are subject to the same confidentiality require- ments as regular employees of BEA or other govern- ment agencies performing functions under the act. Classification of Data Both the financial and operating data and the direct investment position and balance of payments data from the benchmark survey can be classified by indus- try of affiliate, by country and industry of UBO, and by country and industry of foreign parent. In addition, the direct investment position and balance of payments data can be classified by country of each member of the foreign parent group. Table 5. Selected Data of U.S. Affiliates by Fiscal Year Ending Date [Millions of dollars, except as noted] Fiscal year ending date Total January 1 to Marcfi 31 April 1 to June 30 July 1 to September 30 October 1 to December 31 Addendum: December 31 (1) (2) (3) (4) (5) (6) All affiliates: Total assets . . .. 7,438,863 2,368,402 -57,991 357.223 6,070.5 n.a. n.a. 1.288.719 13.359 5.229.812 2,216,530 -57,011 341,935 5,925.1 150,147 348,111 1.214.469 15.470 2,209,051 151,872 -980 15,288 145.4 n.a. n.a. 74.251 -2.111 665.424 356,028 -3,141 40,033 762.7 n.a. n.a. 188,166 63 478.652 325.672 -2.270 39.576 758.9 22,069 96,225 188,027 1.000 186,772 30,356 -871 457 3.8 n.a. n.a. 139 -937 100,755 71.908 (D) 10.464 208.6 n.a. n.a. (D) (D) 99.521 71.829 -8.463 10.453 208.5 9.115 6.720 38.607 -2.543 1.234 80 (D) 11 (') n.a. n.a. (D) (D) 176.725 124.568 (D) 31,834 698.0 n.a. n.a. (D) (D) 164,310 124,186 -8,483 31,788 697.7 8,728 11.465 83,248 7,594 12,415 382 (D) 46 (') n.a. n.a. (0) (D) 6.495.959 1,815.897 -37.954 274.892 4,401.1 n.a. n.a, 976,890 8,218 4,487,329 1,694,843 -37,795 260,118 4,259.9 110,234 233,700 904,587 9,418 2.008.630 121,055 -159 14,773 141.2 n.a, n.a. 72,303 -1,200 6,224,216 Sales Net income ' 1,698,483 -36,310 Compensation of employees 254,983 Ttiousands of employees 3.879.0 Exports of goods Imports of goods n.a, n.a. Foreign direct investment position in ttie United States Direct investment income Nonbank affiliates: Total assets 941.736 8,455 4,369,704 Sales Net income ' 1.584.326 -37.427 Compensation of employees 241.533 3.747.9 Exports of goods 107.514 Imports of goods Foreign direct investment position in tfie United Slates Direct investment income Bank affiliates: Total assets 229,553 874,724 8.680 1.854.512 Sales Net income ' 114.157 1,117 Compensation of employees Thousands of employees 13,450 131.2 Exports of goods n.a. n.a. Foreign direct investment position in ttie United States Direct investment income 67.012 -225 Note. See "General Notes to ttie Tables" on page 2. n.a. Not available 1 . Includes capital gains and losses. M-10 Methodology FDIUS: 2002 Benchmark Survey Industry classification In the 2002 benchmark survey, each U.S. affiliate was classified by industry using the International Survey Industry (ISI) classification system, which was updated for the benchmark survey to reflect the 2002 revision to the North American Industry Classification System (NAICS). For most industries, the classifications under this system are identical to those in the NAICS-based ISI classification system used in the benchmark and annual surveys for 1 997-200 1.^' The most significant change is the addition of several new industries in the information sector. In the 2002 NAICS-based ISI classification system, there are 205 industries, compared with 197 industries in the 1997 NAICS-based ISI system. For the most part, the ISI classifications are equivalent to NAICS four-digit industries; at its most detailed level, NAICS classifies industries at a six-digit level. The ISI classifi- cation system is less detailed than NAICS because it is designed for classif)^ing enterprises rather than estab- lishments (or plants). Because many direct investment enterprises are active in several industries, it is not meaningful to classif)^ all their data in a single industry if that industry is defined too narrowly. A list and a description of the NAICS-based ISI codes (and their relationship to NAICS) are presented in the Guide to Industry and Foreign Trade Classifications for Interna- tional Surveys, 2002 (see appendix B).'^ Each U.S. affiliate was classified by industry on the basis of its sales (or of its total income, for holding companies) in a three-step procedure. First, a given U.S. affiliate was classified in the NAICS sector that accounted for the largest percentage of its sales. '^ Sec- ond, within the sector, the U.S. affiliate was classified in the three-digit subsector in which its sales were larg- est; a three-digit subsector consists of all four-digit industries that have the same first three digits in their four-digit ISI code. Third, within its three-digit sub- sector, the U.S. affiliate was classified in the four-digit industry in which its sales were largest. '^ This proce- dure ensured that the U.S. affiliate was not assigned to a four-digit industry outside either its sector or its three-digit subsector.'-^ Tables II.A 2 and III.A 2 present selected financial and operating data for nonbank U.S. affiliates classified by industry of affiliate; each four-digit industry is shown separately and is grouped by the sector and sub- sector to which it belongs. (Table II.A 2 presents detailed industry data for all nonbank affiliates, and table III.A 2 presents detailed industry data for major- ity-owned nonbank affiliates.) Primarily because of confidentiality requirements, many of these four-digit industries are not shown in the other tables in this publication. However, each industry that is included, but not identified, in an industry group shown in the other tables may be ascertained by referring to tables II.A 2 and III.A 2. Each U.S. affiliate was classified in a single indus- try — the primary industry of the affiliate. As a result, any affiliate activities that take place in secondary industries are classified as activities in the primary industry. Because the benchmark survey data were col- lected on an enterprise basis, the reports for many affiliates reflect substantial activities in secondary industries. Information on the distribution of activities 14. For affiliates reporting on the bank form, however, this procedure was not followed for affiliates that had large sales in nonbanking industries. Because the data reported for bank affiliates include any data for nonbank U.S. companies that are more than 50-percent owned by the bank affiliates (see footnote 3), the sales of a given bank affiliate may be largest in an industry other than banking. In the 2002 benchmark survey, a few affiliates that tiled the bank form reported that their sales were largest in a nonbank- ing industry; in each case, the affiliate was classified in depository credit intermediation (banking), even though its sales were largest in another industry. 15. The following example illustrates the three-stage classification proce- dure. Suppose an affiliate's sales were distributed as follows: 11. In the surveys before 1997, the industry classification system was based on the Standard Industrial Classification (SIC). For a discussion of the differences between the NAICS-based ISI classification system intro- duced in 1997 and the earlier SIC-based ISI classification system, see the section on industry classification in the Methodology of Foreign Direct Investment in the United States: Final Results From the 1997 Benchmark Sur- vey. 12. The Guide is also available on BEA's Web site at . 13. The sectors used were agriculture, forestry, fishing, and hunting; min- ing; utilities; construction; manufacturing; wholesale trade; retail trade; transportation and warehousing; information; finance and insurance; real estate and rental and leasing; professional, scientific, and technical services; management of companies and enterprises; administrative and support, waste management, and remediation services; educational services; health care and social assistance; arts, entertainment, and recreation; accommoda- tions and food services; and other services. Industry code Percentage of total sales 3341 5 3342 3344 10 15 •30 •55 3353 25 4236 45 where industry codes 3341, 3342, 3344, and 3353 are in the manufacturing sector and code 4236 is in the wholesale trade sector. Because 55 percent of the affiliate's sales were in manufacturing and only 45 percent were in wholesale trade, the affiliate's sector is manufacturing. Because the largest share of its sales within manufacturing is in the three-digit subsector 334 (computers and electronic products, which includes industry codes 3341, 3342, and 3344), the affiliate's three-digit subsector is 334. Finally, because its sales within subsector 334 were largest in industry 3344, the affiliate's four-digit industry is 3344 (semiconductors and other electronic compo- nents). Thus, the affiliate was assigned to industry 3344, even though its sales in that industry were smaller than its sales in either industry 4236 or industry 3353. FDIUS: 2002 Benchmark Survey Methodology M-1 1 within each firm was obtained in the benchmark sur- vey for two key items — sales and employment. Each majority-owned U.S. affiliate above a minimum size threshold was required to distribute its sales and its employment among the four-digit industries in which it had sales."' Data on affiliate sales distributed by industry of sales are presented in tables III.A 8, III.E 7, III.E 8, and III.E 9; data on affiliate employment dis- tributed by industry of sales are presented in tables III.A 8, III.G 10, III.G 11, and III.G 12. The data classified by industry of sales confirm that many affiliates had activities in more than one indus- try. In particular, the largest affiliates tended to report substantial sales in a number of secondary industries, including industries outside of the sector in which the affiliate was classified. Table 6 illustrates the degree to which sales by large majority-owned affiliates classified in manufacturing are diversified across industries; it indicates that the 100 largest majority-owned manu- facturing affiliates (which together account for 70 per- cent of the total sales of all majority-owned affiliates classified in manufacturing) on average had sales in 5 industries, and that 36 percent of these affiliates' sales were accounted for by four-digit industries other than the one in which the affiliate was classified.'^ The table also shows that 2 of the 5 industries in which the aver- age affiliate had sales are outside manufacturing; on average, sales outside manufacturing accounted for 16 percent of the affiliates' total sales. In addition, table 6 shows that industry diversifica- 16. Specifically, large majority-owned U.S. affiliates (those with total assets, sales, or net income greater than $125 million) had to specify their sales and employment in the 10 industries in which their sales were largest; medium-sized majority-owned affiliates (those with assets, sales or net income greater than $30 million but not greater than $125 million) had to specify their sales in the 4 industries in which their sales were largest. For majority-owned affiliates, affiliate sales and employment in all other indus- tries are shown in the "unspecified" row in tables III.A 8, III.E 7, III.E 8, III.G 10, and III.G 11. 17. For 35 of these 100 affiliates, the industry in which the affiliate is clas- sified accounts for less than half of the affiliate's total sales. tion tends to increase with affiliate size. For example, in an examination of the 20 largest affiliates, the aver- age number of industries in which affiliates had sales increases to 8 industries, and the average share of sales accounted for by industries other than the industry in which the affiliate was classified increases to 58 per- cent. Similar patterns of industry diversification are displayed by large affiliates classified in industries out- side manufacturing, particularly by affiliates in whole- sale trade. As table 6 implies, the distribution of data by indus- try of affiliate differs from the distribution that would result if each of the affiliates' activities were classified by industry. In table III.A 8, majority-owned nonbank U.S. affiliates' sales and employment by industry of sales are compared with their sales and employment by industry of affiliate. (Data by industry of sales cross-classified by industry of affiliate are shown in table III.E 7 for sales and table III.G 10 for employ- ment.) The distribution of affiliate data by industry of sales roughly approximates the distribution that would result if the data were reported and classified by indus- try of establishment because an affiliate that has an establishment in an industry usually also has sales in that industry. However, if two establishments of an affiliate are in different industries and if one of the establishments provides all of its output to the other one, the affiliate wUl not have sales in the industry of the first establishment.'^ Thus, the data by industry of sales approximate data by industry of establishment, but data by industry of establishment provide more precise and more detailed information on the activities 18. For example, if an affiliate operates both a metal mine and a metal manufacturing plant and if the entire output of the mine is used by the manufacturing plant, all of the affiliate's sales will be in metal manufactur- ing, and none will be in metal mining. When the mining employees are dis- tributed by industry of sales, they are classified in manufacturing. In contrast, when they are distributed by industry of establishment, they are classified in mining. Table 6. Industry Distribution of Sales by 100 Largest Majority-owned Affiliates Classified in Manufacturing Number of four-digit industries in wliicti affiliate tias sales ' Percentage of affiliate sales accounted for by; Addendum: Percentage of affiliate sales accounted for by four-digit industries ottier tfian tliose in wfiicfi ttie affiliate is classified ^ All industries lulanufacturing industries Otfier industries All industries ' IVIanufacturing industries Non- manufacturing industries ' Sales ranl( Total Four-digit industry in wfiicfi tfie affiliate Is classified Other 1 00 largest affiliates 5.2 8.1 4.6 4.5 4.6 4.3 3.5 5.3 2.7 3.5 3.0 3.1 1.7 2.8 1.9 1.1 17 1.2 100.0 100.0 100.0 100.0 100.0 100.0 84.2 73.3 78.8 91.2 84.6 93.1 64.0 42.4 64.8 71.2 68.9 72.7 20.2 30.9 13.9 20.0 15.7 20.4 15.8 26.7 21.2 8,8 15.4 6.9 36.0 1-20 21-40 41-60 61-80 81-100 57.6 35.2 28.8 31.1 27.3 1. On ttie bencfiniark survey form, large majority-owned affiliates (those with assets, sales, or net income greater than $125 million) were required to specify their sales in the 10 industries in which their sales were largest. To the extent that some affiliates had sales in more than 10 industries, there may be a slight downward bias in the average number of industries shown for a given group. 2. For affiliates that had sales in more than 10 industries, includes sales in industries that were not identified on the benchmarl( survey form. M-12 Methodology FDIUS: 2002 Benchmark Survey of the affiliates. In addition, establishment data can be related directly to measures of economic activity by all establishments in the United States. Partly for these reasons, BEA plans to publish establishment data for U.S. affiliates for 2002 as part of a project that links the enterprise data from the benchmark survey to the establishment data from the Census Bureau's 2002 eco- nomic census.''-' The foreign parent and UBO of each affiliate were also classified by industry; however, because a break- down was not obtained for each industry in which the parent or UBO had sales, the categories used were much less detailed than those used for affiliates. In the benchmark survey, an affiliate had to assign its parent and UBO to I of 32 broad NAICS-based categories. These categories are shown in table 7, which presents selected data for majority-owned nonbank affiliates classified by industry of foreign parent. Selected data 19. Establishment data from the Hnk project were pubhshed previously for 1987-92 and 1997; for further information, see footnote 6. for majority-owned nonbank affiliates classified by industry of UBO are presented in table III.A 6. (Data by industry of affiliate cross-classified by industry of UBO are shown in tables III.B 7, III.E 5, III.F 4, and III.G5.) The industry classification of an affiliate's foreign parent may differ from that of its UBO. The foreign parent consists only of the first foreign person in the affiliate's ownership chain, and its industry of classifi- cation reflects only the activities of that first foreign person. In contrast, the UBO's industry reflects its fully consolidated worldwide activities, including the activi- ties of both U.S. and foreign entities in the ownership chain below it. A distribution of sales by industry was not obtained for UBOs or foreign parents. For affiliates that had more than one UBO or foreign parent, each UBO or foreign parent was classified. In the tables that show data disaggregated by industry of UBO or foreign par- ent, all data for these affiliates are shown in the Table 7. Selected Financial and Operating Data of Majority-Owned Nonbank U.S. Affiliates by Industry of Foreign Parent By industry of foreign parent ti/lillions of dollars Total assets (1) Gross property, plant, and equipment (2) Sales (3) Compensation of employees (4) Ttiousands of employees (5) All industries . Government and government-related entities Government and government-owned enterprises.. Pension funds— Government run Individuals, estates, and trusts Pension funds— privately run Estates, trusts, and nonprofit organizations,. Individuals Manufacturing Food Beverages and tobacco products.... Petroleum and coal products Ctiemicals Ptiarmaceuticals and medicines . Other Nonmetallic mineral products Pnmary and fabricated metals Machinery Computer and electronic products Electrical equipment, appliances, and components.. Transportation equipment Motor vehicles, bodies and trailers, and parts Other Other manufacturing Wholesale and retail trade.. Information Depository institutions and bank holding companies Finance (except depository institutions) and insurance.. Finance (except depository institutions) Insurance Real estate Professional, scientific, and technical services.. Other industries Agriculture, lorestry fishing, and hunting Mining Utilities Construction Transportation and warehousing Holding companies Other services 4,573,139 4,123 3,513 611 23,681 2,442 6,903 14,335 784,939 33,603 8,481 36,280 150,898 32,285 118,613 23,775 39,382 33,100 70,375 44,051 270,295 248,737 21,558 74,699 97,063 172,154 1,151,871 724,356 98,665 625,690 44,457 30,102 1,540,392 2,526 22.042 61,205 14,977 24,377 1,376,973 38,293 1,024,364 1,411 (D) (D) 14,721 1,861 2,080 10,780 383,764 12,502 5,059 27,591 60,854 7,894 52,961 20,389 23,778 13,292 25,041 18,678 132,927 127,548 5,379 43,654 33,463 30,107 5,110 23,641 12,793 10,849 39,566 4,099 488,481 1,073 19,588 33,125 6,161 17,235 397,077 14,222 2,030,962 2,898 2,872 26 10,618 467 1,460 8,691 825,035 31,089 7.904 63,557 97,571 25,905 71,666 16,298 40,382 31,331 100,108 61,568 294,108 277.616 16,492 81,121 191,932 42,548 39,005 98,242 24,553 73,689 8,535 24,244 787,904 2,195 15,542 20,406 26,408 18,494 669,560 35,300 315,779 350 350 1 1,392 (d; 1,205 104,399 4,054 1,112 2,126 17,477 4,686 12,790 3,002 7,069 5,919 14,077 8,577 24,894 21,251 3,643 16,093 13,278 9,344 12,507 15,139 5,758 9,381 1,149 6,270 151,950 326 2,595 3,390 4,315 4,782 120,519 16,023 5,425.4 7.3 7.3 34.8 G H 297 1,596.3 77.7 25.7 26.3 207.3 57.1 150.2 62.6 118.9 96,3 184.3 124.3 357.8 303.4 54.4 315.2 380.9 123.4 65.0 140.0 53.6 86.4 17.1 71.5 2,989.2 6.9 29.7 51.7 69.4 98.7 2,090.9 641.9 Notes. See "General I^Jotes to the Tables" on page 2. The lollowing ranges are given in employment cells that are suppressed. The size ranges are; A— 1 to 499; F— 500 to 999; G— 1 ,000 to 2,499; H— 2,500 to 4,999; 1—5,000 to 9,999; J— 10,000 to 24,999; K— 25,000 to 49,999; L— 50,000 to 99,999; M-100,000 or more. FDIUS: 2002 Benchmark Survey Methodology M-13 industry of the UBO or foreign parent with the largest same for 4,972 affihates. Together, these affihates ownership share. account for more than three-fourths of the total assets, sales, and employment of all affiliates. Country classification Table 8 shows for all U.S. affiliates the number that In the benchmark survey, the UBO and the foreign were required to report in the benchmark survey by parent of a U.S. affiliate were each classified by coun- country of UBO (in columns 1-3) and by country of try. For affiliates that had more than one UBO or for- foreign parent (in columns 4-6). For a given UBO eign parent, each UBO or foreign parent was classified; country, the table shows the number of affiliates for for most of the tables in this publication, the data for a which the affiliate's country of foreign parent is identi- given affiliate were then classified by the country of the cal to, or differs from, its country of UBO. For most of UBO or the foreign parent that had the largest owner- the countries shown, the country of foreign parent is ship share in the affiliate. same as the country of UBO for the vast majority of For most affiliates, the country of the UBO is the affiliates. However, for some UBO countries — most country of the foreign parent: Of the 5,932 U.S. affili- notably, Hong Kong and a number of countries in the ates that were required to complete a report, the coun- Middle East — the country of foreign parent of most try of the UBO and that of its foreign parent are the affiliates differs from that of their UBO. For these Table 8. Number of Affiliates by Country of UBO and Country of Foreign Parent, and by Whether or Not the Country of Foreign Parent is the Same as the Country of UBO By country of UBO By country of foreign parent Total Affiliates whose country of foreign parent is: Total Affiliates whose country of UBO is; Country of UBO Another country Country of foreign parent Another country (1) (2) (3) (4) (5) (6) All countries 5,932 5,932 Canada 558 544 14 613 544 69 Europe Austria 35 32 3 33 32 1 Belgium 74 51 54 44 20 7 70 51 54 44 16 Denmark 7 Finland 37 28 9 30 28 2 France 361 320 41 346 320 26 Germany 692 638 54 660 638 22 Ireland 30 26 4 35 26 9 Italy 153 100 53 109 100 9 Luxembourg 21 13 8 90 13 77 Netherlands 229 202 27 372 202 170 Norway 44 39 5 42 39 3 Spain 59 47 12 51 47 4 Sweden 88 74 14 81 74 7 Switzerland 246 194 52 233 194 39 United Kingdom 611 451 160 525 451 74 Ottier Latin America and Other Western Hemisphere Soutli and Central America Brazil 39 22 17 25 22 3 Mexico 82 64 18 67 64 3 Panama 21 21 43 21 22 Venezuela 22 15 7 15 15 Other Other Western Hemisphere Bahamas 10 10 22 10 12 Bermuda 59 34 25 75 34 41 Netherlands Antilles 13 54 11 41 2 13 73 239 11 41 62 United Kingdom Islands, Caribbean 198 Other Africa South Alrica 20 9 11 9 9 Other Middle East Israel 47 40 7 41 40 1 Kuwait 23 9 14 9 9 Lebanon 13 13 Saudi Arabia 66 16 9 3 57 13 9 3 9 3 United Arab Emirates Other Asia and Pacific Australia 85 75 10 79 75 4 China 16 11 5 14 11 3 Hong Kong 81 34 47 40 34 6 India 23 19 4 19 19 Japan 1,452 1,418 34 1,424 1,418 6 Korea, Republic of 73 72 1 72 72 Malaysia 15 7 8 8 7 1 New Zealand 10 40 8 29 2 11 9 34 8 29 1 Singapore 5 Taiwan 111 85 26 87 85 2 Other United States 70 70 Note. This table covers all bank and nonbank affiliates (majority- and minority-owned) that were required to report in he benchmark survey M-14 Methodology FDIUS: 2002 Benchmark Survey countries, the tabular totals shown when data are dis- to by country of UBO. Table 10 shows selected finan- tributed by country of UBO are much higher than cial and operating data for all affiliates, classified by those shown when data are distributed by country of country of foreign parent. As mentioned above, tables foreign parent. Table 8 also shows, for a given country II.A 7 and III.A 7 compare a few key financial and of foreign parent, the number of affiliates for which for operating data items classified by country of UBO and which the affiliate's country of UBO is identical to, or by country of foreign parent for nonbank affiliates, differs from, its country of foreign parent. For some foreign-parent countries— most notably Luxembourg Estimation and General Validity Of the Data and several countries in Latin America and Other Nonbank affiliates with total assets, sales, or net in- Western Hemisphere — the country of UBO of most come greater than $10 million were required to report affiliates differs from that of their foreign parent. For in the benchmark survey. Depending on their size and most of these countries, totals shown when data are the share of ownership held in them by foreigners, they distributed by country of foreign parent are substan- had to report on a long form, a short form, or an ab- tially higher than those shown when data are distrib- breviated short form.'" uted by country of UBO. Tables II.A 7 and III.A 7 The long form (BE-12(LF)) was filed by majority- compare data for selected items by country of UBO owned nonbank affiliates with total assets, sales, or net and by country of foreign parent for nonbank affili- income (or loss) greater than $125 million and col- ates. lected the most detailed data. The short form (BE- Most of the data in the tables that are disaggregated 12(SF)) was filed by minority-owned nonbank affdi- by country in this publication are classified by country ates and by majority-owned nonbank affiliates with of UBO. Classification by country of UBO usually is total assets, sales and net income (or loss) of $125 mil- used for financial and operating data because the lion or less. The full short form — which was filed by country that ultimately owns or controls a U.S. affiliate nonbank affiliates with total assets, sales, or net and that therefore derives benefits from owning or income (or loss) greater than $30 million — collected controlling the affiliate generally is considered most most balance of payments data items but only selected important for analyzing these data. Except for the data financial and operating data items. The abbreviated in table 9 (which provides data on several different short form — which was filed by nonbank affiliates classification bases), all balance of payments and direct with total assets, sales, and net income (or loss) of $30 investment position data in this publication are also million or less — collected key financial and operating classified by country of UBO, so that both types of data data items only. presented will be classified on the same basis. In con- In order to present financial and operating data in trast, the data in the U.S. international transactions the same detail for all majority-owned nonbank affili- accounts and in the foreign direct investment position ates, BEA estimated the items that appeared only on in the United States are usually classified by the coun- the long form for the affiliates that reported on the try of each member of the foreign parent group with short form or the abbreviated short form. For a given which there are transactions or positions. majority-owned affiliate that filed the short form. Tables II.A 3 and III.A 3 present selected financial long-form items were generally estimated on the basis and operating data for nonbank U.S. affiliates by coun- of relationships among data items for a comparable try of UBO; by geographic area, they show each coun- panel of long-form affihates. try in which a UBO was located in 2002. Table 9 shows For both majority-owned and minority-owned data for all affiliates on the direct investment position nonbank affiliates, items that appeared on the full and on direct investment income by each country in short form but not on the abbreviated short form were which a UBO was located. Primarily because of confi- estimated for the affiliates that reported on the abbre- dentiality requirements, many countries could not be viated short form. Estimates were also made for some shown in the other tables in this publication. However, affiliates that failed to report in the benchmark survey each country included, but not identified, in a geo- but for which BEA had a basis for estimation, usually graphic group shown in the other tables may be ascer- from data reported in other BEA surveys. In addition, tained by referring to table II.A 3, table III.A 3, or table estimates were made for affiliates that were exempt 9. from reporting in the benchmark survey. Four tables — tables 9, 10, II.A 7, and III.A 7 — show A total of 4,738 nonbank affdiates filed benchmark data by country of foreign parent. Table 9 shows the direct investment position and direct investment 20. Bank affiliates reported on a separate form. For nonbank affiliates, the 1 t r <• ■ i J I ^ r abbreviated short form consists of items 1 throufi;h 20 in part 1 of the short income by country of foreign parent and by country of fo,„ ^ll the forms used in the benchmark survey are reprmted m appen- each member of the foreign parent group, in addition dixA. FDIUS: 2002 Benchmark Survey Methodology M-15 Table 9. Foreign Direct Investment Position in the United States and Direct Investment Income by Country of UBO, of Foreign Parent, and of Each IVIember of the Foreign Parent Group [Millions of dollars] By country of UBO Position Income (1) (2) By country of foreign parent Position (3) (4) By country of eacfi member of the foreign parent group Position (5) (6) By country of UBO Position (1) Income (2) By country of foreign parent Position (3) Income (4) By country of each member of the foreign parent group Position (5) Income (6) All countries Canada Europe Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Nora/ay Spain Sweden Switzerland United Kingdom Other Azerbaijan Bulgaria Croatia Cyprus Czech Republic Georgia Gibraltar Greece Greenland Hungary Iceland Liechtenstein Lithuania Poland Portugal Romania Russia Slovakia Turkey Ukraine Latin America and Other Western Hemisphere South and Central America. Brazil Mexico Panama Venezuela Other Argentina Belize Chile Colombia Costa Rica Ecuador El Salvador , Guatemala Honduras Nicaragua Paraguay , Peru Suriname , Uruguay Other Western Hemisphere Bahamas Bermuda Netherlands Antilles United Kingdom Islands, Caribbean Other Aruba Barbados Cuba 1,288,719 106,796 877,122 (D) (D) (D) (D) 122.883 156.884 (D) 16.900 5,675 (D) 1,956 6,569 (D) 50,527 (D) 1,694 (*) 2 6 1 33 880 7 (D) 154 253 (*) 7 -98 (*) 199 (*) (D) (•) 96,980 (D) 2,179 (D) (D) (D) (D) 587 2 344 80 (D) 112 47 19 (D) (D) D 2 32 (D) 149 63,049 (D) 14,480 (D) (*) (D) (*) 13,359 (D) 6,643 (D) (D) (D) (D) 2,999 -6,857 (D) -16 256 4,224 -A3^ -284 (D) (D) 8,153 -15 (•) (•) (•) 1 (•) 2 114 2 3 14 -19 (*) (D) -19 (•) -90 -1 (D) (•) 3,930 -307 176 (D) (D) (D) (D) (D) 4 -3 2 2 4 (*) 5 {') -1 (•) 4,236 -8 4,596 (D) -30 (D) (■) (D) 1,288,719 114,247 917,596 2.537 1 1 ,553 261 7,583 121,230 146,428 14,755 7,392 108,375 169,149 3,624 5,587 21,959 104,488 189,210 3,463 (*) 2 56 1 1,376 470 1 1,158 151 153 (•) (D) -98 (*) 54 (*) (D) 77,831 13,056 706 7,669 397 3,431 853 374 1 280 45 6 (D) 9 18 (*) (*) 1 (D) 99 64,775 879 24,364 3.815 18,777 16,939 (•) 16,848 (D) 13,359 145 12,609 20 489 -53 230 3,186 -7,714 384 -125 -198 3,035 66 -268 1,842 5,100 6,150 465 (•) (*) (•) -7 (•) 585 43 (■) -83 14 16 (*) (D) -19 (*) -71 -1 (D) -1,854 -219 91 -115 -31 -138 -26 ^2 4 18 -7 (•) (•) 2 4 (*) (*) -2 -3 -1.635 16 -1,360 -343 -336 389 387 (D) 1,288,719 96,444 946,751 3,085 12,859 414 6,289 122,268 138.269 14,296 7,620 114,669 149,667 3,591 5,623 20,677 120,159 204,020 23,244 -3 2 56 13 -1 1,376 466 1 16,946 (D) 189 (•) 19 -88 (D) 94 (*) 142 (•) 67,390 11,240 441 7,537 -1 ,070 3.735 597 846 1 253 -219 1 (D) 8 (D) (•) (*) -15 (D) 26 56,151 1,429 17,923 3,885 17,512 15,402 (D) 15,301 (D) 13,359 -746 13,565 23 540 192 3,280 -7,804 391 -130 -165 2,545 62 -268 1,771 5.171 6,629 1.376 (•) (*) (*) -7 (*) 585 43 (•) 404 (D) 16 (') (D) -19 (•) -69 -1 (D) -1,930 -270 90 -153 -69 -112 -27 ^3 4 17 -7 (*) (*) 2 4 (') (•) -2 -3 -1,661 19 -1,096 -343 -420 181 (*) 178 (D) Dominican Republic. French Islands, Caribbean Grenada Haiti Jamaica St. Vincent and the Grenadines Trinidad and Tobago. Africa South Africa Other Algeria Angola Congo (Brazzaville) Egypt Equatorial Guinea Ghana Guinea Liberia , Mauritania Mauritius Morocco Nigeria Zambia Middle East Israel Kuwait Lebanon Saudi Arabia United Arab Emirates Other Bahrain Iran Iraq Jordan Oman Qatar Syria Yemen (Sanaa) Asia and Pacific Australia , China Hong Kong India Japan Korea, Republic of Ivlalaysia New Zealand Singapore Taiwan Other Afghanistan Bangladesh Brunei Indonesia Marshall Islands North Korea Pakistan Papua New Guinea Philippines Sri Lanka Thailand Vanuatu Vietnam United States Addenda: European Union (15) OPEC (D) (•) 2 1 1 36 (D) 2,387 (D) (D) (D) 1 17 1 (D) 662 5 12 (D) 10,228 3,110 (D) 367 4,309 (D) 249 -11 (D) (D) -9 -2 16 6 1 181,318 (D) 533 2,918 226 139,655 3,568 (D) 260 3,266 4,214 809 (D) 1 (D) 129 72 1 198 (*) 54 (D) (*) (D) 823,726 10,903 (D) (*) (*) (•) 5 (D) 7 (D) (D) (•) -3 -4 (*) (D) -18 -2 -2 -295 87 45 3 -326 -12 -92 -44 (*) (D) (D) 2,463 -994 (D) 94 ^8 3,286 208 -5 -8 53 -107 (D) (*) (•) 3 -32 (D) (•) 12 (*) -18 (D) 10,433 -450 (D) 1 1 5 29 2,263 683 1,580 (D) 12 (D) 1,388 (D) 9 (D) (D) 2,519 947 (*) 2,607 220 (D) 139 2 (D) (D) -2 16 1 170,231 23,491 312 1,141 222 135,110 3,567 645 245 2,588 2,614 294 (D) 1 5 58 7 54 1 94 (•) 58 (D) (*) (D) 806,392 7,549 (D) (') (■) 4 -44 ^8 4 (*) -4 (D) (D) -2 -2 (D) 70 55 (•) (D) (*) -64 -16 (•) (D) (D) (•) 3 2,781 -885 18 56 -34 3,482 208 -16 -14 45 -74 -5 -4 -2 (D) (D) (*) 5 (*) -17 (*) (D) 7,001 -292 62 5 35 2,369 659 1,709 -1 (D) 6 (D) -3 (D) 1,554 -3 (D) 9 (D) (D) 2,551 944 (*) (D) 227 492 325 2 (D) (D) -5 16 (D) 169,247 22,758 406 1,573 212 135,168 3,446 705 487 1,670 2,512 309 (D) 1 5 56 (D) -2 54 1 98 6 69 (D) -4 (D) 800,136 7,635 (D) -40 -47 7 (•) -4 (D) (D) -2 -2 (D) 70 55 (*) (D) -16 (*) (D) (D) (*) 3 2,792 -888 17 58 -34 3,492 208 -16 -9 43 -74 -5 (•) -4 -2 (D) (D) -17 (•) (*) (D) 6,981 -270 Note. See "General Notes to the Tables" on page 2. M-16 Methodology FDIUS: 2002 Benchmark Survey Table 10. Selected Financial and Operating Data of U.S. Affiliates by Country of Foreign Parent Millions of dollars Total assets (1) Gross property, plant, and equipment (2) Sales (3) Net income ' (4) Compensation of employees (5) Thousands of employees (6) All countries Canada Europe Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netfierlands Norway Spain Sweden Switzerland United Kingdom Ottier Latin America and Other Western Hemisphere South and Central America Brazil Mexico Panama Venezuela Other Other Western Hemisphere Bahamas Bermuda Netherlands Antilles United Kingdom Islands, Caribbean Other Africa South Africa Other IVIiddleEast Israel Kuwait Lebanon Saudi Arabia United Arab Emirates Other Asia and Pacific Australia China Hong Kong India Japan Korea, Republic of Malaysia New Zealand Singapore Taiwan Other Addenda: European Union (15) OPEC 7,438,863 572,442 5,313,012 (D) 64.220 (D) 47.126 664,645 1,005,889 (D) (D) (D) 1,031,321 (D) 35,502 87,986 1,201,562 784,024 (D) 688,762 489,885 5,912 (D) (D) 19,034 (D) 198,877 5,161 63,909 (D) 80,295 (D) (D) (D) (D) (D) 25,607 (D) (*) 9,141 (D) (D) 812,256 86,100 (D) (D) 1,945 661,223 18,726 1,525 470 9,699 22,455 (D) 4,087,902 32,585 1,204,287 110,760 754,376 (D) (D) (D) (D) 65,028 180,300 (D) (D) (D) (D) 2,781 2,841 (D) (D) (D) (D) 122,734 55.077 266 7,314 (D) (D) (D) 67,657 (D) 25,721 9,903 26,980 (D) 7,924 95 7,829 11,245 (D) (D) (*) (D) 295 211 197,247 (D) (D) 1,061 128 162,526 (D) (D) 115 2,841 3,327 (D) 682,657 19,627 2,368,402 157,304 1,466,403 (D) (D) (D) 16.536 187,103 318,696 (D) (D) (D) 292,985 (D) 4,995 48,098 (D) 250,725 1 1 ,834 172,064 92,694 858 (D) (D) 25,249 (D) 79,370 2,075 23,373 9,040 35,790 9,092 (D) (D) 5,791 (D) (D) (D) (*) (D) (D) 523 538,770 25,550 (D) 1,712 (D) 466,634 31,706 1,217 1,240 3,720 4,553 540 1,256,500 (D) -57,991 -5,235 -43,124 -56 -564 -95 -1,064 -6,353 -27,647 -537 ^00 1,702 -671 -100 -284 2,025 -13,001 3,628 293 730 4,779 68 -598 (D) (D) -33 ^,049 120 -3,153 -318 -115 -583 26 -25 50 -603 -17 54 (*) (D) 2 (D) -9,785 -12,257 33 61 -49 2,434 396 -11 -4 -213 -173 -1 -30,270 -232 357,223 29,719 253,808 663 4,219 2,103 2,814 30,350 50,811 5,695 1,849 11,425 44,563 830 833 9,723 47,371 38,010 2.549 23,155 7,868 91 3,276 (D) (D) 169 15,287 221 4,523 2,311 5,788 2,444 812 197 615 1,239 474 30 k 34 (D) 48,490 4,176 185 226 114 41,493 939 129 43 487 617 80 203,132 1,397 6,070.5 539.4 4,224.3 13.0 141.6 42.6 39.1 489.5 683.9 M K M M 13.4 18.3 222.6 631,6 M K 475.8 162.7 1.3 L L 7,1 2,9 313.1 5-6 102.2 38.3 125.6 41.5 12.3 2-0 10.3 15.8 8-6 F (*) H 0.6 1.3 802.9 61.9 2.5 5,0 1.5 686.7 14.3 H G 12.6 11,8 2,4 3,539.3 J 1 . Includes capital gains and losses. Notes. See "General Notes to the Tables" on page 2 The following ranges are given in employment cells that are suppressed. The size ranges are: A- L— 50,000 to 99,999; M-100,000 or more. ■1 to 499; F-500 to 999; 6-1 ,000 to 2,499; H-2,500 to 4,999; 1—5,000 to 9,999; J-1 0,000 to 24,999; K— 25,000 to 49,999; FDIUS: 2002 Benchmark Survey Methodology M-17 survey reports (table 1 1 ). In terms of value, these affili- ates accounted for 90 percent or more of the nonbank affiliate universe for most key data items. Estimates were made for 926 nonbank affiliates that did not file a benchmark survey report even though they met the criteria for filing (these affiliates accounted for 16 per- cent of the total number of nonbank affiliates that were required to report). For these affiliates, BEA had a report in another direct investment survey that could serve as a basis for the estimation. These affiliates, most of which were small, accounted for less than 10 percent of the nonbank universe for most key data items. For majority-owned nonbank affiliates, the long form was filed by a total of 1,594 affiliates (table 12). Although these affiliates accounted for only 32 percent of all majority-owned nonbank affiliates that were required to report, in terms of value, they accounted for 85 percent or more of the majority-owned non- bank universe for most key data items. A total of 1,281 majority-owned nonbank affiliates filed full short forms, and 1,249 majority-owned non- bank affiliates filed abbreviated short forms. Together, these affiliates accounted for slightly more than half of all majority-owned nonbank affiliates that were required to report; however, in terms of value, they accounted for less than 5 percent of the majority- owned nonbank affiliate universe for most key data items. A large number of these affiliates were in real estate, and their shares of the universe in this industry in terms of value were disproportionately high. In real estate, affiliates that filed either the short form or the abbreviated short form accounted for 16 percent of the total assets, 19 percent of the sales, and 34 percent of the employment of majority-owned affiliates. The data reported by U.S. affiliates had to pass a substantial number of computerized edit checks. Where possible, the data for an affiliate were reviewed for their consistency with related data for the affiliate from other parts of the report form, with data pro- vided in related report forms, with comparable data reported by other affiliates, and with comparable data from outside sources. As a result of this edit and review process, a number of changes to the reported data were made, usually after consulting with the reporting affili- ate. In some cases, usually involving small affiliates, estimates based on industry averages or other informa- tion were substituted for missing or erroneously Table 11. Selected Data for U.S. Affiliates That Filed Reports and for Affiliates for Which Reports Were Estimated Number of affiliates iVIillions of dollars Total assets Gross property, plant, and equipment Sales Net income ' Compensation of employees Tliousands of employees Affiliates that were required to file a report . Bank affiliates Nonbank affiliates Nonbank affiliates tfiat actually filed reports Nonbank affiliates that failed to file reports and for which reports were estimated Affiliates that were exempt from reporting ^ 5,932 268 5,664 4,738 926 8,717 7,424,268 2,209,004 5,215,265 4,951,139 264,126 14,594 1,195,951 11,576 1,184,375 1,101,500 82,875 8,336 2,357,869 151,857 2,206,012 2,034,312 171,700 10,532 -57,293 -979 -56,315 -51 ,202 -5,112 -697 355,227 15,285 339,942 305,168 34,774 1,996 6,029,8 145.3 5,884.4 5,299.7 584.8 40.7 1. Includes capital gains and losses. 2. For exempt affiliates, data were estimated lor all items except total assets, sales, and net income (which were reported on the exemption form). Table 12. Selected Data for Majority-Owned Nonbank U.S. Affiliates That Were Required to Report Number of affiliates Millions of dollars Total assets Gross property, plant, and equipment Sales Net Income ' Compensation of employees Thousands of employees Majority-owned nonbank affiliates that were required to file a report Majority-owned nonbank affiliates that actually filed reports 4,920 4,124 1,594 1,281 1,249 796 32.4 4,558,592 4,311,531 4,231,847 61,876 17,807 247,061 92.8 1,016,029 942,969 899,016 34,654 9,300 73,059 88.5 2,020,444 1,863,240 1,787,298 59,820 16,123 157,204 88.5 -54,277 -50,175 -49,414 -196 -565 -4,101 91.0 313,786 282,478 268,015 10,935 3,528 31,307 85.4 5,384.8 4,874.4 Affiliates that filed long forms 4,587.2 Affiliates that filed full short forms 223.8 Affiliates that filed abbreviated short forms 63.5 Majority-owned nonbank affiliates that failed to file reports and for which reports were estimated 510.3 Addendum: Majority-owned affiliates that filed long forms as a percentage of all majority-owned nonbank affiliates that were required to report 85.2 1 . Includes capital gains and losses. M-18 Methodology FDIUS: 2002 Benchmark Survey reported data. For some items — such as those pertaining to trade by product and country of origin or destination and employment by industry of sales or by state — affiliates had difficulty in supplying the required information because the data were not easily accessible or were unavailable from their standard accounting records. In these cases, affiliates often made estimates, the quality of which is difficult to assess. Number of Affiliates Several tables in this publication present the number (by industry, country, or state) of affiliates that were required to report in the benchmark survey. Because the exemption level for filing reports was higher than in previous benchmark surveys, the number is not comparable with that shown in previous benchmark and annual publications.-' The number of affiliates shown in the tables of this publication exclude affiliates that were exempt from reporting, even though estimates for exempt affiliates are now included in the data for other items. For the benchmark survey, exemption claims were filed by 8,717 affiliates; however, the total number of affiliates that were below the threshold for submitting bench- mark survey reports may be considerably higher than the number of exemption claims that were actually filed. In terms of value, the effect of any omission of exempt affiliates on the benchmark survey data is neg- ligible, as exempt affiliates account for only a tiny per- centage of the data for all affiliates (table 4). However, the number of exempt affiliates that were not counted could be substantial. The published data on the number of affiliates that were required to report may also be subject to some imprecision, because some affiliates that were required to file a report did not do so. Because of limited resources, BEA's efforts to ensure compliance with reporting requirements focused mainly on large affili- ates. As a result, some small affiliates that were not aware of the reporting requirements and that were not on BEA's mailing list may not have filed reports. Although the omission of these affiliates from the benchmark survey results probably has not signifi- cantly affected the aggregate value of the various data items collected, it could have caused an unknown, but possibly significant, understatement of the number of affiliates. 21. As stated in the section on "Coverage," affiliates with total assets, sales, and net income (or loss) of $10 million or less were exempt from reporting in the 2002 benchmark survey. In the 1997 benchmark survey, the exemp- tion level for reporting was $3 million. Under a $10-million exemption level, 3,020 of the 10,090 affiliates that were required to report in the 1997 benchmark survey would have been exempt from reporting. Even an exact count of U.S. affiliates would be diffi- cult to interpret because each report covers a fully con- solidated U.S. business enterprise, which may consist of several companies. The number of fully consoli- dated enterprises varies according to the degree of con- solidation used and the differences in the organizational structure of the company. Several tables in this pubhcation (for example, table LA 1) show the number of companies consolidated in the affiliates' reports in addition to the number of affiliates that were required to report. Because the report for one affiliate may cover many companies, the total number of com- panies consolidated is substantially higher than the total number of affiliates — 34,362 companies, com- pared with 5,932 affiliates. For nonbank affiliates, the comparable figures are 33,436 companies and 5,664 affiliates. This publication includes the number of nonbank affiliates by state in the following three categories: Affiliates with either property, plant, and equipment or employment (tables II.A 10, III.A 10, and IV.A 10); majority-owned nonbank affiliates with property, plant, and equipment (tables III.D 18 and III.D 19); and majority-owned nonbank affiliates with employ- ment (table III.G 18). In the tables for majority-owned nonbank affiliates (in part III of this publication), the number for a given state may differ across tables because some affiliates have both employment and property, plant, and equipment in the state, some have only employment, and some have only property, plant, and equipment. An affiliate is counted even if it only has a few employees in the state and even if the value of its prop- erty, plant, and equipment is small. For example, sales offices often account for a substantial portion of the total number of affiliates in a state. These offices often have fewer than 10 employees and only a nominal amount of property, plant, and equipment. The signif- icance of such small operations in a particular state can be ascertained from tables III.D 18 and III.G 18, which show the number of affiliates with property, plant, and equipment and the number with employment, each disaggregated by size. Financial and Operating Data Financial and operating data focus on the overall oper- ations of U.S. affiliates. Among the items covered by these data are the following: Balance sheets and in- come statements; value added; sales of goods and ser- vices; external financial position; taxes; property, plant, and equipment; employment and compensation of employees; U.S. trade in goods; research and develop- ment activities; and U.S. land owned by affiliates. Only a few of these items were obtained for bank affiliates; FDIUS: 2002 Benchmark Survey Methodology M-19 consequently, most of the tables that present financial the profits earned in production. The costs fall into and operating data cover nonbank U.S. affiliates only, four major categories: Compensation of employees, Financial and operating data for bank affiliates are net interest paid, taxes on production and imports, shown in tables 5 and 11, in tables LA 1 and LA 2, and and the capital consumption allowance.^- The esti- in most of the tables in part IV. mates presented in this publication were calculated as The financial and operating data for U.S. affiliates the sum of costs and profits, are not adjusted for the ownership share of the foreign Value added is generally preferred to sales or other direct investors. Thus, for example, the employment measures used to assess the economic impact of affili- data include all the employees of each affiliate, includ- ates on the entire U.S. economy and on individual ing affiliates in which the foreign investor's ownership industries. Value added permits a more focused analy- share is less than 100 percent. sis of the impact of affiliates because it measures only Most of the concepts and definitions used in report- the affiliates' own contribution to economic output, ing the financial and operating data can be found on whereas sales do not distinguish between the affiliates' the survey forms or in the Instruction Booklet to the own contribution and the value of output embodied in forms in appendix A. The following discussion focuses inputs purchased from other companies. In addition, on the concepts, definitions, and statistical issues that value added estimates measure the contribution to the require further explanation or that are not covered in economy by affiliates during a specific period. In con- either the forms or the Instruction Booklet. trast, some of the sales in a given period may represent production from earlier periods. Balance sheets and income statements U.S. affiliates' balance sheets and income statements Sales of goodS and services are required to be filed according to U.S. generally ac- For nonbank affiliates, the 2002 benchmark survey col- cepted accounting principles (GAAP), and any major lected affiliates' sales (or gross operating revenues) dis- changes in GAAP wUl affect the affiliate data. aggregated into goods, services, and investment For most affiliates, the income statement includes income. Services were further disaggregated into sales all types of income, both ordinary and extraordinary, to U.S. persons, sales to members of the foreign parent However, for some affiliates, such as those in insur- group, sales to foreign affiliates, and sales to other for- ance, GAAP requires certain unrealized gains and eigners.^^ losses to be carried directly to owners' equity in the For purposes of distributing sales into goods, ser- balance sheet rather than to be recorded on the income vices, and investment income, "goods" are generally statement. defined to be economic outputs that are tangible and Under GAAP, depreciation and depletion charges "services" are generally defined to be economic are used to distribute the cost of an asset over that asset's estimated useful life. For example, affiliates 22. in the U.S. national income and product accounts (NIPAs), two mea- engaged in extracting natural resources report net sures of depreciation, or capital consumption are used-thecap,tal co.- o c' <-> J: _ sumption allowance and consumption of fixed capital. Ine capital income after the deduction of book depletion — that is, consumption allowance (CCA) consists of depreciation charges, which are those expenses representing the periodic chargeoff of based largely on tax returns, and allowances for accidental damage to fixed , , , , _ capital. Consumption of fixed capital consists of CCA plus an adjustment tne actual cost Ol natural resources, lax or percentage ^^ pj^^.^ depreciation on an economic basis that uses economic service lives, depletion is not deducted. depreciation that follows a geometric pattern, and replacement-cost valua- tion. \/qI a oHrlarl For U.S. affiliates, the only measure of capital consumption available from value duucu BEAs survey data is the book value of depreciation, reported on a basis con- Value added is an economic accounting measure of the distent with GAAP. Because this measure does not provide for replace- , . r 1 1 • A T T 1^ rr-1 • ^ > ment-cost valuation, it is termed the "capital consumption allowance" in production of goods and services. A U.S. affiliates this publication (see table iii.f i). value added measures the value of its production net of The basis used to measure depreciation has no effect on the measurement any intermediate inputs produced by others; it thus otjotal value added; any differences between the measures of depreciation, ' i.~ y J which is a cost or production, have equal and offsetting effects on the measures the affiliate s contribution to U.S. gross do- profit-type-return component. mestic product (GDP). 23. Data on sales of services collected in the benchmark and annual sur- T^ TTi^ ri-T. r r- i jjj veys of foreign direct investment in the United States and U.S. direct invest- For a U.S. affihate, as for any firm, value added can J^^^ ^^^J^^ ^^^^^^^^ ^.^^ ^^^^ ^„ cross-border trade in services, are be measured as its gross output less its intermediate presented in annual articles in the Slirvey of Clwrent Business; for a presen- inputS (purchased goods and services used in produC- nation of the most recent data, see Erin Nephew, Jennifer Koncz, Maria , ^ "^ ^ Borga, and Michael Mann, U.S. International Services: Cross-Border tion). Alternatively, it can be measured as the sum Ot j.^^^ ,„ 2004 and Sales Through Affiliates in 2003," Survey 85 (October the costs incurred (except for intermediate inputs) and 2005): 25-77. M-20 Methodology FDIUS: 2002 Benchmark Survey outputs that are intangible.-'' Information on invest- ment income was collected primarily to ensure that, if investment income was included in total sales (or gross operating revenues), it would not be included in sales of services. In finance and insurance, affiliates include investment income in sales because it is generated by a primary activity of the affiliate. In other industries, most affiliates consider investment income an inciden- tal revenue source and include it in the income state- ment in an "other income" category rather than in sales. For the first time, the 2002 benchmark survey col- lected data on sales of services by bank affiliates; these sales were disaggregated into sales to U.S. persons and sales to foreign persons. Also collected for the first time for bank affiliates were data on the affiliates' total interest paid and total interest received, which will pro- vide a basis for imputing the value of services provided without an explicit charge. In addition to these new data items for bank affiliates, the 2002 benchmark sur- vey collected new data on insurance premiums earned and losses incurred for affiliates with activities in insurance and new data on goods for resale without further processing for affiliates with activities in wholesale or retail trade; these data (which are not pre- sented in this publication) will provide the basis for improved estimates of insurance and distributive ser- vices by affiliates.-^ Employment and compensation of employees In the benchmark survey, affiliates were requested to report employment as the number of full-time and part-time employees on the payroll at the end of fiscal year 2002. However, a count taken during the year was accepted if it was a reasonable proxy for the end-of-year number. In addition, if employment at the end of the year was unusually high or low because of temporary factors, such as seasonal variations or a 24. Tangible outputs are typically associated with establishments in the following six NAICS sectors: Agriculture, forestry, fishing and hunting (except support activities for agriculture and forestry); mining (except sup- port activities); construction; manufacturing; wholesale trade; and retail trade. Intangible outputs are typically associated with establishments in the 14 other NAICS sectors — utilities; transportation and warehousing; infor- mation; finance and insurance; real estate and rental and leasing; profes- sional, scientific, and technical services; management of companies and enterprises; administrative and support and waste management and reme- diation services; educational services; health care and social assistance; arts, entertainment, and recreation; accommodation and food services; other services (except public administration); and public administration — and with establishments that provide support activities for agriculture and for- estry and for mining. 25. The improved estimates of banking, insurance, and distributive ser- vices and the methodologies used to prepare them will be presented in an article in the Survey of Curreni Business. For more information, see the box, "New Data on Insurance, Wholesale and Retail Trade, and Banking Services Sold Through Affiliates," in "U.S. International Services" Survey 85 (Octo- ber 2005): 29. Strike, a number reflecting normal operations was re- quested. Employment is classified both by industry of affili- ate and by industry of sales. The classification by industry of sales is based on information supplied by each affiliate on employment in the four-digit indus- tries in which it had sales. Data on employment, compensation of employees, and wages and salaries covering affiliates' total U.S. operations were collected. For nonbank affiliates, data on their total employment and on their manufacturing employment were also collected by state. Manufactur- ing employees in a given state consist of the employees on the payroll of manufacturing plants in the state. These data are shown in tables II. G 19 and III.G 13. For manufacturing, three measures of employment are available from the benchmark survey. The employ- ment totals under each of the three measures differ. Employment by manufacturing affiliates (shown in tab- ulations by industry of affiliate) consists of the employment by affiliates classified in manufacturing. It includes all the employees of affiliates whose primary industry is manufacturing, even though the affiliates may have activities, and thus employees, in other industries; it excludes the manufacturing employees of affiliates not classified in manufacturing. Nonbank affiliates' manufacturing employment (tables II. G 19 and III.G 13) consists of the employees on the payrolls of manufacturing plants of nonbank affiliates. It includes employees of manufacturing plants of non- bank affiliates that are not classified in manufacturing, and it excludes employees of nonmanufacturing plants of affiliates that are classified in manufacturing. Manu- facturing employment when employees are disaggregated by industry of sales (tables III.G 10 to III.G 12) consists of the employment of affiliates in each four-digit man- ufacturing industry in which they had sales. Unlike nonbank affiliates' manufacturing employment, it may include some nonmanufacturing employees. -^^ The manufacturing employment data in table III.G 13 give a better indication of the number of manufac- turing employees in a state than the data in table III.G 7, which shows affiliate employment in each state clas- sified by industry of affiliate. The manufacturing employees shown in table III.G 13 are those actually engaged in manufacturing in the state regardless of the industry classification of the affiliate. In contrast, in table III.G 7, all the employees of a U.S. affiliate in the state are shown in the single industry in which, based on its total U.S. operations, the affiliate is classified, even if some of the employees are in other industries. 26. See the discussion of affiliate sales and employment classified by industry of sales in the section "Industry classification." FDIUS: 2002 Benchmark Survey Methodology M-21 Although the data on employment and compensa- data. However, most affiliates keep their accounting tion of employees from the benchmark survey can be records on a "charged" basis — that is, on the basis of used to compute rates of compensation per employee when, where, and to (or by) whom the goods were and wages and salaries per employee, these rates may charged. The two bases are usually the same, but they not accurately reflect the compensation rates normally can differ substantially. For example, if a U.S. affiliate paid by affiliates (and, thus, are not shown in this pub- buys goods from country A and sells them to country lication). The computed rates may be distorted by the B and if the goods are shipped directly from country A inclusion of part-time employees, because part-time to country B, the affiliate's books would show a pur- employees are counted the same as full-time employ- chase from country A and a sale to country B. Because ees, or by data that cover only part of the year — for the goods never entered or left the United States, on a example, data for an affiliate that was newly estab- shipped basis, they would not be recorded as either lished during the year.^^ U.S. imports or U.S. exports. However, if the affiliate's trade data were reported on a charged basis, the pur- Property, plant and equipment chase would appear as a U.S. import and the sale In the benchmark survey, U.S. affiliates were required would appear as a U.S. export. to disaggregate the gross book value of their property. On the basis of its review, BEA believes most affdi- plant, and equipment (PPE) by use, both for their total ates reported on a shipped, rather than on a charged, U.S. operations and for their operations in each state, basis. However, some affiliates had difficulty obtaining A breakdown was obtained for two broad categories — data on a shipped basis, which usually requires using commercial property and PPE used for all other pur- shipping department invoices rather than accounting poses. Commercial property consists of the gross book records. If BEA determined that the data were reported value of all commercial buildings and associated land on a charged basis and that these data were likely to owned by the affiliate. Commercial buildings include differ materially from data reported on a shipped basis, apartment buildings, office buildings, hotels, motels, it required revised reports to be filed. However, some and buildings used for wholesale, retail, and services cases of erroneous reporting were probably not identi- trades (such as shopping centers, recreational facilities, fied. department stores, bank buildings, restaurants, pubhc In addition, the data on trade by U.S. affiliates that garages, and automobile service stations). PPE used for are collected by BEA are on a fiscal year basis, whereas all other purposes includes PPE used for agriculture, the data on total U.S. trade in goods that are collected mining, manufacturing, or other industrial purposes; by the Census Bureau are on a calendar year basis. In it also includes equipment used in commercial build- the 2002 benchmark survey, affiliates whose fiscal year ings. exactly corresponded to the calendar year 2002 accounted for 72 percent of the total exports and for 66 U.S. trade in goods percent of the total imports of goods reported for all The concepts and definitions underlying the data col- nonbank affiliates (table 5). lected in the benchmark survey on U.S. trade in goods Additional differences between the BEA trade data of U.S. affiliates are nearly identical to those used for and the Census Bureau trade data may have resulted the data on total U.S. trade in goods compiled by the simply because the data come from different sources: Census Bureau. The trade data are particularly difficult The BEA data are based on company records, whereas for affiliates to report, but BEA's review of the reported the Census Bureau data are compiled from export and data indicates that most of the data conform well to import documents filed by shippers with the U.S. Census Bureau concepts and definitions. However, be- Bureau of Customs and Border Protection on individ- cause of certain reporting issues, the affiliate trade data ual transactions. The timing, valuation, origin or desti- are not completely comparable with the Census Bu- nation, shipper, and product involved in a given reau trade data. In the benchmark survey, data on U.S. transaction may be recorded differently on company trade in goods were requested to be reported on a records than on these export and import documents, "shipped" basis — that is, on the basis of when, where. In the 2002 benchmark survey, as in previous and to (or by) whom the goods were shipped — in or- benchmark surveys, exports shipped by affiliates were der for them to be comparable with official U.S. trade disaggregated by country of destination, and imports shipped to affiliates were disaggregated by country of 27. Employee compensation rates are better measured by hourly wage Origin. To reduce the reporting burden On U.S. afflli- rates, which do not suffer from these shortcomings. Data on hourly wage ateS, breakdowns of trade in gOOds by COUUtry of deSti- rates for foreign-owned manufacturing establishments for 1988-92 and ^^^^^^ ^j. Q^igin are Collected Only in benchmark- 1997 are available from the BEA-Census Bureau data link project; tor tur- o ' ther information, see footnote 6. SUrvey years. M-22 Methodology FDIUS: 2002 Benchmark Survey Affiliate exports and imports are also disaggregated Direct Investment Position and Balance of by product only in benchmark- survey years. In the Payments Data 2002 benchmark survey, as in the 1997 benchmark Direct investment position and direct investment bal- survey, exports and imports were broken down by 10 ance of payments data measure the U.S. affiliate's broad product categories that are based on the Stan- transactions and positions with its foreign parent and dard International Trade Classification (see tables other members of its foreign parent group. In contrast, III.H 9 to III.H 21). As discussed in the Methodology affiliate financial and operating data provide measures of the 1997 benchmark survey publication, some of of the U.S. affiliate's overall operations, including its these product categories differ from the categories transactions and positions with persons other than used in the benchmark surveys for 1980, 1987, and members of its foreign parent group. For example, the 1992. direct investment position in an affiliate is equal to its In the 2002 benchmark survey — as in the bench- foreign parent group's equity in, and net outstanding mark surveys for 1980, 1992, and 1997 — imports loans to, its U.S. affiliate; a U.S. affiliate's total assets, in shipped to affiliates were disaggregated by intended contrast, are equal to the sum of ( 1 ) the total owners' use into three categories: Capital equipment, goods for equity in the affiliate held both by members of the for- resale without further manufacture, and goods for fur- eign parent group and by all other persons and (2) the ther manufacture. However, in the 1987 benchmark total liabilities owed by the affiliate both to members of survey, data on capital equipment and goods for fur- the foreign parent group and to all other persons.'*^ ther manufacture were collected as a single category. In the benchmark survey, data for the position and Data on goods for further manufacture have been col- balance of payments items were obtained in parts III lected in the annual surveys since the 1993 survey. and IV of the long form and in part III of the short form (see appendix A). For foreign direct investment Research and development in the United States, the following major items appear The 2002 benchmark survey collected data on two in the U.S. international transactions (balance of pay- technology-related items — research and development ments) accounts: (R&D) expenditures and the number of employees en- •Direct investment capital flows, gaged in R&D-related activities. •Direct investment income, As in the 1992 and 1997 benchmark surveys, the •Direct investment royalties and license fees, and 2002 benchmark survey data on R&D expenditures • Other direct investment private services, were collected on two bases: R&D funded by the affili- Two adjustments are made to the balance of pay- ate (whether the R&D was performed internally or by ments data before they are entered into the U.S. inter- others) and R&D performed by the affiliate (whether national accounts. First, two of these items — income the R&D was for its own use or for use by others). The and capital flows — are adjusted to reflect cur- first basis views R&D from the perspective of the costs rent-period prices.-"^ Second, the data from the bench- of production and can be used as an indicator of affili- mark survey are adjusted from a fiscal year basis to a ates' use of technology; this basis is consistent with calendar year basis. As discussed in the section on fiscal guidelines of the Financial Accounting Standards year reporting, the direct investment position and bal- Board for accounting for the costs of R&D. The second ance of payments data collected in the 2002 bench- basis can be used to gauge the technological capabih- mark survey are on a fiscal year basis. Thus, before the ties of affiliates, and it is the primary basis on which data are incorporated into the U.S. international trans- National Science Foundation and Bureau of the Cen- actions accounts and the annual series on the position, sus surveys collect information on R&D from U.S. businesses. ~ , .^, , , • ^ - J , ^^.. . . II- 28. To illustrate, suppose that an affiliate IS owned 80 percent by Its for- RikD performed by affiliates is the only basis on eign parent and that the affiliate has total owners' equity of $50 million and which data on affiliate R&D expenditures have been totalliabilltiesofSlOOmillion, of which $20 million is owed to the parent. ii„^i „ J ;„ or; A' 1„ r c^^■ 4. *• In this case, the affiliate's total assets would be $150 million (total owners' collected in BBAs annual surveys ot amliate operations ., ,.,.„ „. , ,,,,,,, a, an n ^ a .u ' r equity of $50 million plus total liabilities of $100 million), and the parents since the survey for 1998. Before the 1997 benchmark position in the affiliate would be $60 million (80 percent of the $50 million survey, the sole basis for collecting R&D expenditure of owners' equity plus the $20 million of intercompany debt). J . , , T. o T-> r 1 1 1 rr•^■ 29. The adjustments are made Only at the global level; the data required to data in the annual surveys was R&D funded by affili- ^.^^e them for countries and industries are not avaUable. ates. The adjustments are accomplished in three steps. First, a capital con- Data on the number of employees associated with '""^P^" adjustment is made to convert depreciation charges from a his- ^ ' ^ torical-cost basis to a current- (or replacement-) cost basis. Second, R&D activities have been collected in the annual SUr- earnings are raised by the amount of charges for the depletion of natural veys since the 1993 survey. They were previously col- resources, because these charges are not treated as production costs in the 1 ^ I 1 • ^1 I , , c i/->r,/^ 1 NIPAs. Third, expenses for mineral exploration and development are real- lected only in the benchmark surveys for 1980 and ^^^^.^^ ^^..^^^ p^^^^s to ensure that they are written off over their eco- 1992. nomic lives rather than all at once. FDIUS: 2002 Benchmark Survey Methodology M-23 which are on a calendar year basis, they must be U.S. affiHates and foreign parents' equity in the adjusted from a fiscal year basis to a calendar year retained earnings of their U.S. affiliates. Capital stock basis. The adjusted data for 2002 will be extrapolated consists of all the stock of the affiliates — both common forward to derive universe estimates for calendar years and preferred and voting and nonvoting. Other capital after 2002 on the basis of sample data collected in contributions by foreign parents, also referred to as the BEA's quarterly surveys for those years. ^° "foreign parents' equity in additional paid-in capital," consist of the invested and contributed capital that is Foreign direct investment position in the not included in capital stock, such as cash contribu- UniteCi States tions, the amount paid for stock in excess of its par or The foreign direct investment position in the United stated value, and the capitalization of intercompany States at historical cost is equal to the net book value of accounts (conversions of debt to equity) that do not the foreign parent groups' equity in, and net outstand- result in the issuance of capital stock. Foreign parents' ing loans to, their U.S. affiliates. The position may be equity in retained earnings is the foreign parents' viewed as the foreign parent groups' contributions to shares of the cumulative undistributed earnings of the total assets of their U.S. affiliates or as financing their incorporated U.S. affiliates, provided in the form of equity or debt by foreign par- Although some unincorporated affiliates could not ent groups to U.S. affiliates. disaggregate owners' equity by type, the data on for- The direct investment position data presented in eign parents' equity in affiliates by type cover both this publication are valued at historical cost and are incorporated and unincorporated affiliates. For unin- not adjusted to current value. Thus, they largely reflect corporated affiliates for which no breakdown of own- prices at the time of investment rather than prices of ers' equity by type was available, parents' total equity the current period. Because historical cost is the basis was included in "other" equity. The foreign parents' used for valuation in company accounting records in share in total owners' equity (not broken down by the United States, it is the only basis on which compa- type) is shown for incorporated affiliates and for unin- nies can report data in BEAs direct investment surveys, corporated affiliates in addenda to the tables. It is also the only basis on which detailed estimates of Foreign parent groups' net outstanding loans to the position are available by country, by industry, and their U.S. affiliates, also referred to as "U.S. affiliates' by account. However, BEA does provide aggregate esti- net intercompany debt," consist of trade accounts and mates of the position valued in current-period prices.^' trade notes payable, other current liabilities, and Direct investment equity positions in U.S. affiliates long-term debt owed by the affiliates to their foreign are, by definition, held only by foreign parents. Foreign parents or other members of their foreign parent parents may also have direct debt positions with U.S. groups, net of similar items due to the affiliates from affiliates. For other members of the foreign parent their foreign parents or other members of their foreign groups, only direct debt positions are included in the parent groups, direct investment position. Intercompany debt includes the value of capital Foreign parents' equity in incorporated affiliates can leases and of operating leases of more than 1 year be broken down into foreign parents' holdings of capi- between U.S. affihates and their foreign parent groups, tal stock in, and other capital contributions to, their The value of the property leased to a U.S. affiliate by its foreign parent group is included in affiliates' payables, 30. As noted in the section on coverage, the universe estimates in the U.S. j^i i c ^i. 4.1 ju ttc ff 1 • <■ international transactions accounts include transactions for affiliates that ^ud the value of the property leased by a U.S. affiliate were liquidated or sold during a given calendar year. In contrast, the bal- tO the foreign parent grOUp is included in affiliates' ance of payments data coUected in the 2002 benchmark survey and pre- receivables. Under a Capital lease, it is assumed that the sented in this publication do not cover transactions for enterprises that '^ ^ , , were no longer U.S. affiliates at the end ofthe 2002 fiscal year. In the bench- title tO the leased property Will be transferred tO the marksurvey publications for 1992 and 1997, the balance of payments data lessee at the termination of the lease, similar tO an and the beginmng-of-year direct investment position data included esti- installment Sale. Operating leaSeS have a term that is mates for affiliates that were liquidated or sold during the benchmark sur- >: o r i-r r 1 vey year, using data from other surveys. In this publication, the balance of significantly shorter than the expected USeful life of the payments and direct investment position data are not adjusted to include tangible property being leased, and the leased property such estimates, in order to preserve consistency in coverage with the finan- . _ 1 . .1 1 , ^i ._ • ._■ r cial and operating data. IS usually returned to the lessor at the termination of 31. Position estimates measured at current cost and at market value for the lease. For Capital leaseS, the value of the leased foreign direct investment in the United States (and for US. direct invest- property is Calculated according tO GAAP; Under ment abroad) are published each July in an article on the U.S. mternational r r / o investment position in the Survey of Current Business. For a discussion of GAAP, the lessee reCOrds either the present value of the concepts and estimating procedures, see J. Steven Landefeld and Ann M. future Icase payments Or the fair market ValuC, which- Lawson, "Valuation of the U.S. Net International Investment Position," Sur- . , j .^r. 1 j -tU j. 1 r VEY 71 (May 1991)- 40-49 ^^^"^ ^^ lower, and the lessor records the present value of M-24 Methodology FDIUS: 2002 Benchmark Survey future lease receipts. For operating leases of more than 1 year, which are carried only on the balance sheet of the lessor, the value recorded is the original cost of the leased property less the accumulated depreciation. For U.S. affiliates that are depository institutions, the direct investment position is defined to include only their foreign parent groups' permanent equity and debt investment in them; similarly, the direct investment flows that enter the U.S. international transactions accounts for these affiliates include only transactions related to such permanent investment. All other transactions and positions — mainly claims and liabilities arising from the parents' and affiliates' nor- mal banking business — are excluded from the direct investment accounts and included with other banking claims and liabilities. For nonbank U.S. affiliates that are primarily engaged in financial intermediation, the direct invest- ment position and associated direct investment capital flows exclude intercompany debt transactions.^' This treatment, which was introduced in the U.S. interna- tional transactions accounts for 1994, is similar to the treatment of nonpermanent debt investment for affili- ates that are depository institutions.^-^ A foreign parent and its U.S. affiliate may have a two-way relationship — each may have debt and equity investment in the other. Thus, a foreign parent may have investment in a U.S. affiliate that, in turn, has investment in the parent as a result of the affiliate's lending funds to, or acquiring voting securities or other equity interest in, the parent. In addition, the other members of the foreign parent group may have debt investment in a U.S. affiliate, and a U.S. affiliate may have debt or equity investment in the other mem- bers of the foreign parent group. In the intercompany debt portion of the position, affiliates' receivables from their foreign parent groups (reverse debt investment) are netted against affiliates' payables to their foreign parent groups. '"^ Equity investment by U.S. affiliates in members of their foreign parent groups is included in the U.S. direct investment position abroad if the affih- ate's ownership is 10 percent or more and in the "for- eign securities" component of U.S. -owned assets abroad if the affiliate's ownership is less than 10 per- cent. The direct investment position at the end of the year is equal to the position at the end of the previous year plus the change in the position during the year (table 13). The change during the year is the sum of direct investment capital flows (defined below) and valuation adjustments. Valuation adjustments are broadly defined to include all changes in the position other than capital flows. They primarily reflect differences between the transactions values, which are used to record direct investment capital flows, and the book values on U.S. affiliates' books, which are used to record the position and, hence, changes in the posi- tion. For example, valuation adjustments include dif- ferences between the sale value and the book value of affiliates that are sold by foreign parents and differ- ences between the purchase price and the book value of affiliates that are acquired by foreign parents.''-'' They also include currency-translation adjustments — that is, the gains and losses that arise because of changes in the exchange rates used in translating affiliates' for- eign-currency-denominated assets and liabilities into U.S. dollars — and other capital gains and losses, such as revaluations of assets that result from mergers and acquisitions. Direct investment capital inflows Direct investment capital inflows (which are recorded in the financial account of the U.S. international trans- actions accounts) consist of equity capital inflows, re- invested earnings, and intercompany debt inflows. This section first defines these components and then discusses the coverage, measurement, and presentation of direct investment capital inflows. 32. For this purpose, a nonbank affiliate that is primarily engaged in financial intermediation is defined to be an affiliate classified in finance (except depository institutions or insurance) whose foreign parent (or — in the case of an affiliate whose foreign parent is a holding company — whose UBO) is either (1) a foreign depository institution or (2) a company in other finance (excluding insurance). 33. See the section on "reclassification of intercompany debt and associ- ated interest transactions with financial intermediaries" in Christopher L. Bach, "U.S. International Transactions: Revised Estimates for 1986-97," Survey 78 ( July 1998): 52-53. 34. In the extremely rare case in which a U.S. affiliate and its foreign par- ent own 10 percent or more of each other, a U.S. affiliate's debt investment in the foreign parent group is not netted against the group's debt invest- ment in it. To avoid double-counting, the foreign parent group's debt investment in the affiliate is included in the foreign direct investment posi- tion in the United States, and the affiliate's debt investment in the foreign parent is included in the U.S. direct investment position abroad. 35. For the current-price estimates of the foreign direct investment posi- tion entered in the U.S. international investment position, the correspond- ing adjustments would reflect differences between the transactions values and the estimated current values of the affiliates. Table 13. Change in the Historical-Cost Foreign Direct Investment Position in the United States by Account, 2002 [Millions of dollars] Position at yearend 2001 Change in position Capital inflows without current-cost adjustment Equity capital Increases Decreases Reinvested earnings without current-cost adjustment.. Intercompany debt Increases in U.S. affiliates' payables Increases in U.S. affiliates' receivables Valuation adjustments Position at yearend 2002 1.212,248 76,471 114,660 126,987 156,493 29,507 -24,564 12,237 58,984 46,747 -38,189 1,288,719 FDIUS: 2002 Benchmark Survey Methodology M-25 Equity capital inflows. — Equity capital inflows are the parent's investment in its affiliate, an entry that is net increases in foreign parents' equity in their U.S. equal to that made in the direct investment income affiliates; equity capital outflows (decreases in equity) account but that has the opposite sign is made in the are netted against equity capital inflows (increases in direct investment financial account, equity) to derive the net inflow. Equity capital inflows For incorporated U.S. affiHates, distributed earnings exclude changes in equity that result from the reinvest- are dividends on common and preferred stock held by ment of earnings, which are recorded as a separate foreign parents. Distributions can be paid out of cur- component of direct investment capital inflows. rent or past earnings. Dividends exclude stock and liq- Equity capital inflows to U.S. affiliates result from uidating dividends. Stock dividends are excluded foreign parents' establishment of new U.S. affiliates, because they are a capitalization of retained earnings — from their initial acquisition of 10-percent-or-more a substitution of one type of equity (capital stock) for ownership interests in existing U.S. business enter- another (retained earnings); they reduce the amount prises, from their acquisition of additional ownership of retained earnings available for distribution but leave interests in existing U.S. affiliates, and from their capi- total owners' equity unchanged. Thus, stock dividends tal contributions to U.S. affiliates. do not give rise to entries in the international transac- Equity capital outflows result from liquidations of tions accounts.'^ Liquidating dividends are excluded U.S. affiliates, from partial or total sales of ownership because they are a return of capital rather than a remit- interests in U.S. affiliates, and from the return of capi- tance of earnings (liquidating dividends are included tal contributions. Equity capital outflows also include as outflows in the direct investment equity capital liquidating dividends, which are a return of capital to account). For unincorporated affiliates, distributed foreign parents. earnings are earnings distributed to foreign parents Equity capital inflows are recorded at transactions out of current or past earnings, values. In most cases, transactions values may be Distributed earnings, like total earnings, are based obtained from the books of the U.S. affiliates. How- on the books of the U.S. affiUate. Because they are on ever, in some cases, such as when a foreign parent pur- an accrual basis, they are reported as of the date that chases or sells capital stock in the affihate from or to an they are either paid to foreign parents or entered into unaffiliated third party, the transactions value may be intercompany accounts with the foreign parents. Dis- obtained only from the parent's books. In addition, tributed earnings are included whether they are paid in transactions values on foreign parents' books reflect cash, through debt creation, or in kind, the actual cost of ownership interests in affiliates that Intercompany debt inflows. — Intercompany debt are acquired or sold by foreign parents, including any inflows consist of the increase in U.S. affiliates' net premium or discount; such values may differ from the intercompany debt to their foreign parent groups dur- book values recorded on the affiliates' books. ing the year. The increase for a given period is derived Reinvested earnings. — Reinvested earnings of U.S. by subtracting the net outstanding intercompany debt affiHates are earnings less distributed earnings. Earn- balance (that is, affiliate payables less affiliate receiv- ings are foreign parents' shares in the net income of ables) at the end of the previous period from the net their U.S. affiliates after provision for U.S. income outstanding balance at the end of the current period. taxes;earningsarefrom the books of the U.S. affiliate.^'' When a member of a foreign parent group lends A foreign parent's share in earnings is based on its funds to a U.S. affiliate, the balance of the affiliate's directly held equity interest in the U.S. affiliate. The payables (amounts owed) to the foreign parent group earnings and reinvested earnings estimates in this pub- increases; subsequently, when the affiliate repays the lication are not adjusted to reflect current-period principal owed to a member of the foreign parent prices, because the source data needed to adjust the group, the balance of the affiliate's payables to the estimates by detailed country and industry are not group is reduced. Similarly, when a member of the for- available. eign parent group borrows funds from a U.S. affiliate, Earnings are entered into direct investment income the balance of the affiliate's receivables (amounts due) because they are income to the foreign parent, whether from the group increases; subsequently, when the they are reinvested in the affiliate or remitted to the member of the group repays the principal owed to the parent." However, because reinvested earnings are not affiliate, the balance of the affiliate's receivables from actually transferred to the foreign parent but increase the group is reduced. 36. As discussed in the next section, "Direct investment income," earnings 38. "Stock dividends" are used here to refer to essentially the same con- exclude capital gains and losses, whether or not such gains and losses are cept that is discussed in the IMF Manual (see footnote 8) under the heading included in net income for income statement purposes. of "bonus shares." BEA has retained its terminology because it conforms to 37. See the next section, "Direct investment income." what U.S. firms understand by the term "stock dividends." M-26 Methodology FDIUS: 2002 Benchmark Survey Increases in affiliates' payables to, or reductions in affiliates' receivables from, their foreign parent groups give rise to inflows on intercompany debt accounts. Increases in affiliates' receivables from, or reductions in affiliates' payables to, their foreign parent groups give rise to outflows. Not all intercompany debt transactions reflect actual flows of funds. For example, when distributed earnings, interest, or royalties and license fees from a U.S. affiliate accrue to a foreign parent group, the full amount is included as an income payment or royalty and license fee payment (an outflow) on foreign direct investment in the United States. If part of that amount is not actually transferred to the foreign parent group, the amount not transferred is entered into intercom- pany accounts as an increase in the U.S. affiliate's pay- ables to its foreign parent group (an inflow). The net change in intercompany debt includes changes in the value of capital leases and operating leases of more than 1 year between foreign parent groups and their U.S. affiliates. When property is leased by a U.S. affiliate from its foreign parent group, the value of the leased property is recorded as an inter- company debt inflow because it increases the affiliate's payables. The subsequent payment of principal on a capital lease or the component of payments under an operating lease that reflects depreciation is a return of capital and is recorded as an intercompany debt out- flow because it reduces the affiliate's payables. Simi- larly, when property is leased by a U.S. affiliate to its foreign parent group, the value of the leased property is recorded as an intercompany debt outflow because it increases the affiliate's receivables. The subsequent payment of principal on a capital lease or the compo- nent of rent on an operating lease that reflects depreci- ation is a return of capital and is recorded as an intercompany debt inflow because it reduces the affili- ate's receivables. Coverage, measurement, and presentation. — Most intercompany debt and equity capital flows result from transactions between foreign parent groups and their U.S. affiliates. However, some of these flows may result from transactions between foreign parents and unaffil- iated U.S. persons; for example, a direct investment equity capital flow results from a transaction between a foreign parent and an unaffiliated U.S. person when the parent purchases an affiliate's capital stock from the unaffiliated person. In general, direct investment capital inflows exclude transactions among members of a foreign parent group or between the members of the group and other foreigners, because foreign-to-foreign transactions are not international transactions of the United States.^'' Thus, if a foreign parent purchases additional capital stock in a U.S. affiliate from another foreign person, the foreign parent's ownership interest in the U.S. affil- iate will increase, but no equity capital inflow is recorded, because the transaction occurs entirely out- side the United States. In addition, there is no net increase in foreign claims on the United States; instead, the foreign parent's claims have merely been substi- tuted for the claims of the other foreign person. *" However, if the foreign parent's original interest represented only a less-than- 10-percent investment interest and if the combined interests qualif)^ as a direct investment as a result of the purchase of an additional interest, a direct investment capital inflow equal to the value of the additional interest is recorded. In addition, a valuation adjustment is made to the direct invest- ment position to bring the original interest into the position. If a foreign parent's interest in an affiliate falls below 10 percent, a direct investment capital outflow is recorded and a valuation adjustment is made to extin- guish the remaining direct investment interest. (In both cases, offsetting adjustments would be made to the "U.S. securities other than U.S. Treasury securities" component of foreign-owned assets in the U.S., so that the reclassification would not affect the overall U.S. international investment position.) Equity capital and intercompany debt inflows can be disaggregated into several subaccounts. Equity capi- tal inflows, which are recorded as a net amount, can be disaggregated to show increases and decreases in equity. Intercompany debt inflows are disaggregated to show both the flows resulting from changes in U.S. affiliates' payables and the flows resulting from changes in U.S. affiliates' receivables. Certain transac- tions may affect two or more of these subaccounts simultaneously and by offsetting amounts. Such trans- actions are "grossed up"; that is, the inflows and the offsetting outflows are recorded in the affected subac- counts rather than being netted to zero and not recorded in any subaccount. However, because such gross flows are offsetting, they have no effect on net capital inflows. For example, the capitalization of 39. An exception to this general rule is a transaction in which one mem- ber of a U.S. affiliate's foreign parent group sells a bond or other debt instrument issued by the affiliate to a second member of the group. If the two members are located in different countries, offsetting direct investment capital flows are recorded — an outflow to the first country and an inflow from the second country. 40. If this exchange involves more than one country, offsetting valuation adjustments are made to the direct Investment position, reducing the posi- tion of the seller s country and increasing the position of the purchaser's country. FDIUS: 2002 Benchmark Survey Methodology M-27 intercompany debt, which gives rise to an intercom- pany debt outflow and an offsetting equity capital inflow, results in gross, but not net, flows. Direct investment income Direct investment income is the return on the foreign direct investment position in the United States; that is, it is the foreign parents' return on their debt and eq- uity investment in their U.S. affiliates plus the return of other members of the foreign parent groups on their debt investment in U.S. affiliates. Direct investment in- come consists of earnings (that is, the foreign parents' share in the net income of their U.S. affiliates) plus in- terest on intercompany accounts of U.S. affQiates with their foreign parent groups (interest is defined as the interest paid by U.S. affiliates to their foreign parent groups net of the interest received by U.S. affiliates from their foreign parent groups). Earnings are the foreign parents' return on their equity investment, and interest is the foreign parents' return on their debt in- vestment in U.S. affiliates. Table 14 shows direct invest- ment income and the relationships among its components for all U.S. affiliates from the 2002 bench- mark survey. Direct investment income is reported as accrued. Direct investment income and earnings exclude cur- rency-translation adjustments and other capital gains and losses, whether or not such gains and losses are included in net income for income statement pur- poses. This treatment is intended to make income and earnings correspond more closely to the current oper- ating performance of affiliates as recommended by international guidelines for the compilation of balance of payments accounts. Direct investment income is measured before deduction (that is gross) of all withholding taxes.*' This treatment views taxes as being levied upon the recipient of the distributed earnings or interest and thus as being paid across borders, even though, as an administrative convenience, the taxes actually were paid by the firm whose disbursements gave rise to them. Thus, U.S. withholding taxes on distributed earnings and on interest received by the foreign parent are recorded as if they were paid by the foreign parent, not by the U.S. affiliate. Similarly, foreign withholding taxes on interest payments by the foreign parent are recorded as if they were paid by the U.S. affiliate, not by the foreign parent. Counterentries for these taxes are made in the U.S. international transactions accounts under "unilateral current transfers, net." Interest is recorded on a net basis as interest paid or credited to foreign parents and other members of the foreign parent groups on debt owed to them by U.S. affiliates less interest received from, or credited by, for- eign parents and other members of the foreign parent groups on debt owed by them to U.S. affiliates.''^ Inter- est receipts are netted against interest payments because in the intercompany debt component of the direct investment position, debt owed by foreign par- ent groups to U.S. affiliates is netted against debt owed by U.S. affiliates to foreign parent groups. Like other components of direct investment income, interest is reported as accrued. It includes interest paid through debt creation or in kind as well as interest paid in cash. Interest includes net interest payments on capital leases between U.S. affiliates and their foreign parent groups because the outstanding capitalized value of such leases is included in the intercompany debt com- ponent of the direct investment position."*^ Direct investment royalties and license fees Direct investment royalties and license fees consist of payments of fees by U.S. affiliates to, and receipts of fees by U.S. affiliates from, their foreign parents and other members of the foreign parent groups for the use or sale of intangible property or rights, such as patents, industrial processes, trademarks, copyrights, fran- chises, designs, know-how, formulas, techniques. 42. For U.S. affiliates that are depository institutions (commercial banks, savings and loan institutions, and credit unions), interest includes only pay- ments on permanently invested debt capital in the affiliate. For nonbank affiliates that are primarily engaged in financial intermediation, all interest on intercompany debt is excluded from direct investment income pay- ments. The treatment of interest for these two types of affiliates parallels the treatment of their debt transactions with their foreign parent groups, as described in the section "Foreign direct investment position in the United States." 43. Although the value of operating leases of more than 1 year is also included in the intercompany debt position, payments of net rent (which covers interest, administrative expenses, and profit) on such leases are recorded as charges for the use of tangible property (part of the direct investment "other private services" account) rather than as interest. Table 14. Direct Investment Income and Its Components [Millions of dollars] 41. Withholding taxes are taxes withheld at the source on income or other funds that are distributed or remitted. Income without current-cost adjustment.... Earnings witliout current-cost adjustment . Distributed earnings Reinvested earnings Interest US. aftiliates' payments U.S. affiliates' receipts 13,359 -3,562 21,002 -24.564 16,921 19,049 2,129 M-28 Methodology FDIUS: 2002 Benchmark Survey manufacturing rights, and other intangible assets or proprietary rights. In the U.S. international transactions accounts, U.S. affiliates' receipts of royalties and license fees are recorded as U.S. exports of services, and U.S. affiliates' payments are recorded as U.S. imports of services. Both receipts and payments are measured before the deduction, or gross, of (foreign or U.S.) withholding taxes. Payments and receipts of royalties and license fees are based on the books of U.S. affiliates and are reported as accrued. When funds are not actually transferred, offsetting entries are made in the inter- company debt account. Direct investment other private services Transactions in other private services consist of pay- ments by U.S. affiliates to, and receipts by U.S. affiliates from, their foreign parents or other members of their foreign parent groups for other private services, which consist of service charges, charges for the use of tangi- ble property, and film and television tape rentals. Pay- ments and receipts are reported as accrued and are based on the books of U.S. affiliates. In the U.S. international transactions accounts, U.S. affiliates' receipts are recorded as U.S. exports of ser- vices, and U.S. affiliates' payments are recorded as U.S. imports of services. Both receipts and payments are measured before the deduction, or gross, of (foreign or U.S.) withholding taxes. Service charges. — Service charges consist of fees for services — such as management, professional, or tech- nical services — rendered between U.S. affiliates and their foreign parents or other members of their foreign parent groups. The service charges may represent sales of services or reimbursements. Sales of services are receipts for services rendered that are included in sales or gross operating revenues in the income statement of the seller. Normally, receipts are included in sales if the performance of the service is a primary activity of the enterprise. (For example, if a U.S. management-con- sulting firm provided management-consulting services to its foreign parent or foreign parent group, the resulting revenues would be included in its sales.) Reimbursements are receipts for services rendered that are normally included in "other income" rather than in sales in the income statement of the provider of the service. Typically, the performance of the service is not a primary activity of the enterprise; however, the service may facilitate or support the conduct of the enterprise's primary activities. (For example, if a for- eign manufacturer provides management services to its U.S. manufacturing affiliate, the associated charges normally would be recorded in its income statement under "other income" and would be reported to BEA as a reimbursement.) Reimbursements may be allocated expenses or direct charges for the services rendered. Allocated expenses are overhead expenses that are apportioned among the various divisions or parts of an enterprise. An example would be R&D assessments on the U.S. affiliate by its foreign parent for R&D the parent per- forms and shares with its affiliate. In the 2002 benchmark survey, as in the 1997 benchmark survey, data on service charges by type of service between U.S. affiliates and their foreign parent groups were collected. The seven types of services specified in the 2002 benchmark survey are insurance services; financial services; transportation services; computer and information services; management, consulting, and public relations services; research, development, and testing services; and "other ser- Vices. ^* The data on intercompany service charges by type of service indicate that 41 percent of U.S. affiliates' pay- ments and 44 percent of U.S. affiliates' receipts were for "other services" (table II. N 3). These high percent- ages may result because survey respondents do not have the necessary information in their accounting records to provide a breakdown of their allocated expenses or of other services transactions with their foreign parent groups by type of service. The share for "other services" may also be large because "other ser- vices" includes many services that are not covered by the other six categories. Charges for the use of tangible property. — Charges for the use of tangible property include total lease pay- ments under operating leases of 1 year or less and net rent on operating leases of more than 1 year. From the lessors' viewpoint, total lease payments for operating leases consist of two components: ( 1 ) Net rent, which covers interest, administrative expenses, and profit, and (2) depreciation, which is a return of capital. For operating leases of more than 1 year, net rent is included in "other private services," and depreciation is included as an intercompany debt flow in the direct investment capital account. For operating leases of 1 year or less, total lease payments — covering both net rent and depreciation — are included in "other private services." Because the value of property leased to or from foreigners for 1 year or less in principle is 44. Two of these service categories — management, consulting, and public relations services and research, development, and testing services — were not included in the 1997 benchmark survey. See the footnotes to table II. N 3 for the definitions used on the 2002 benchmark survey for each category of intercompany service charges. FDIUS: 2002 Benchmark Survey Methodology M-29 excluded from U.S. exports and imports of goods in television tapes. Except for mass-produced films and the U.S. international transactions accounts, no export tapes — such as prerecorded video cassettes, digital to or import from the foreign parent groups by U.S. video disks, and compact disks (which are recorded in affiliates is recorded in the trade in goods account; U.S. trade in goods) — such film and television tapes thus, there is no subsequent return of capital to or are treated as if they were being rented rather than from the foreign parent groups in the form of depreci- sold, and payments for the tapes are considered pay- ation to be recorded in the direct investment financial ments for services rather than payments for goods, account. Such depreciation is instead considered part This treatment is used because the value of the tapes is of rentals — a payment for services rendered by, rather derived mostly from the services, such as entertain- than a return of capital to, the foreign parent groups. ment and education, that they provide, not from the Film and television tape rentals. — Film and televi- value of the media on which they are recorded. Thus, sion tape rentals are rentals that U.S. affiliates pay to, the cost of the film and television tapes is excluded or receive from, foreign parents or other members of from the U.S. trade-in-goods account and is included the foreign parent groups for the sale or use of film and in "other private services." FDIUS Tables Final Results From the 2002 Benchmark Survey 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 indi- rectly, 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, partner- ship, associated group, association, estate, trust, or other organization and any government (including any corpo- ration, 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. • The industry "management of nonbank companies and enterprises" includes holding companies. • To ascertain the subindustries in an industry grouping, see tables II.A 2 and III.A 2. • To ascertain the countries in a geographical area, see tables II.A 3 and III.A 3. • The European Union (15) comprises Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Swe- den, and the United Kingdom. • 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. • An "ultimate beneficial owner" (UBO) is that person, proceeding up a U.S. affiliate's ownership chain, begin- ning with and including the foreign parent, that is not owned more than 50 percent by another person. • A "foreign parent group" consists of (1) the foreign par- ent, (2) any foreign person, proceeding up the foreign parent's ownership chain, that owns more than 50 per- cent of the person below it, up to and including the UBO, and (3) any foreign person, proceeding down the owner- ship chain(s) of each of these members, that is owned more than 50 percent by the person above it. • Nonbank U.S. affiliates consist of all affiliates except those classified in depository credit intermediation, which comprises commercial banks, savings institutions, credit unions, bank holding companies, and financial holding companies. • OPEC is the Organization of Petroleum Exporting Coun- tries. Its members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. • 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. affiH- ates working abroad for more than one year; for property, plant, and equipment, it consists primarily of movable fixed assets temporarily located outside the United States. • In the tables in which the data are disaggregated by the industry of the ultimate beneficial owner, "government and government-related entities" consists of foreign gov- ernments, government-owned or government-spon- sored agencies, quasi-government organizations, and government-run pension funds. • An asterisk "C^)" indicates a nonzero value between -$500,000 and $500,000, less than 500 hectares of land, or fewer than 50 employees. • Bank affiliates consist of all of the affiliates classified in depository credit intermediation. The data reported for bank affiliates include, in a single consolidated report, any data for affiliates in nonbanking industries that are more than 50-percent owned by the bank affiliates. (The estimates 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 2002. • Detail may not add to the total, because of rounding. •A "(D)" indicates that the data have been suppressed to avoid the disclosure of 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. See the section "Footnotes to Tables" following the last table on page 207. Parti Bank and Nonbank Affiliates Bank and Nonbank Affiliates FDIUS: Final 2002 Results Table I.A 1. Selected Financial and Operating Data of Affiliates [Millions of dollars, except as noted] All affiliates Total (1) Majority-owned (2) Ottier (3) Nonbank affiliates Total (4) Majority-owned (5) Ottier (6) Bank affiliates Total (7) Majority-owned (8) Ottier (9) Number of affiliates ttiat were required to file a report ' Number of companies consolidated on affiliate reports Number of affiliates tliat filed exemption claims ^ Total assets Total liabilities Owners' equity Sales Net income Compensation of employees Employment (ttiousands) n.a. Not available 5,932 34,362 8,717 7,438,863 6,326,568 1,112,295 2,368,402 -57,991 357,223 6,070.5 5,185 31,211 n.a. 6,780,199 5,824,985 955,214 2,182,705 -55,975 331,032 5,570.4 747 3,151 n.a. 658,664 501 ,583 157,081 185,696 -2,016 26,191 500.1 5,664 33,436 8,702 5,229,812 4,192,915 1,036,896 2,216,530 -57,011 341 ,935 5,925.1 4,920 30,288 n.a. 4,573,139 3,693,138 880,001 2,030,962 -54,973 315,779 5,425.4 744 3,148 n.a. 656,673 499,777 156,896 185,568 -2,038 26,156 499.7 268 926 15 2,209,051 2,133,652 75,399 151,872 -980 15,288 145.4 265 923 n.a, 2,207,060 2,131,847 75,213 151,743 -1,002 15,253 145.0 3 3 n.a. 1,991 1,805 185 129 22 34 0.4 FDIUS: Final 2002 Results Bank and Nonbank Affiliates Table I.J 1. Selected Balance of Payments Data of All Affiliates, by Industry of Affiliate ^ (Millions of dollars] Direct investment position on a tiistorical-cost basis (1) Capital inflows Total (2) Equity capital (3) Reinvested earnings (4) Intercompany debt (5) Direct investment income (6) Royalties and license fees, net ^ (7) Charges for other services, net 3 All industries Manufacturing Food Beverages and tobacco products , Texllles, apparel, and leather products Paper Printing and related support activities Petroleum and coal products Chemicals Basic chemicals Resins and synthetic rubber, fibers, and filaments Pharmaceuticals and medicines Soap, cleaning compounds, and toilet preparations Other Plastics and rubber products Nonmetallic mineral products Primary and fabricated metals Primary metals Fabricated metal products Machinery Agriculture, construction, and mining machinery Industrial machinery Other Computers and electronic products Computers and peripheral equipment Communications equipment Semiconductors and other electronic components Navigational, measuring, and other instruments Other Electrical equipment, appliances, and components Transportation equipment , Motor vehicles, bodies and trailers, and parts Other Other Wholesale trade Motor vehicles and motor vehicle parts and supplies Electrical goods Petroleum and petroleum products Other Retail trade Food and beverage stores Other Information Publishing industries Motion picture and sound recording industries Telecommunications Other Depository credit intermediation (banking) Banks Branches and agencies Finance (except depository institutions) and Insurance, Finance, except depository institutions Insurance carriers and related activities Real estate and rental and leasing Real estate Rental and leasing (except real estate) Professional, scientific, and technical services Architectural, engineering, and related services Computer systems design and related services Management, scientific, and technical consulting Other Other industries Agriculture, forestry fishing, and hunting Mining Utilities Construction Transportation and warehousing Management of nonbank companies and enterprises Administration, support, and waste management Health care and social assistance Accommodation and food services Miscellaneous services 1,288,719 456,001 36,580 15,305 2,022 10,183 3,598 (D) 97,033 15,383 14,507 48,768 6,093 12,282 9,493 28,738 18,476 8,969 9,507 43,783 19,611 2,909 21,262 48,685 1,325 11,507 10,348 16,043 9,461 14,221 58,790 54,321 4,469 (D) 184,167 22,941 18,693 72,000 70,533 23,353 13,137 10,216 109,512 40,696 13,793 33,536 21 ,487 74,251 73,067 1,184 162,436 46,193 116,243 35,470 28,546 6,924 30,311 1,993 3,881 8,242 16,196 213,217 2,602 29,456 31,279 7,112 21 ,452 77,957 13.087 (D) 22,241 (D) 114,660 34,440 5.182 -2,542 -16 800 368 (D) -2,962 -1,250 -2,835 -1,113 88 2,149 2,979 1,763 2,940 1,529 1,412 (D) (D) 63 -3,997 -8,239 -89 -8,151 1,663 -1,334 -327 6,514 8,425 7,079 1.346 169 14,330 3,332 811 5,316 4,872 1,335 621 713 9,094 7,828 -222 -1.731 3,219 4,070 3,683 387 14,130 1,875 12,254 877 612 265 5,387 (D) 264 1.680 (D) 30,997 -19 12.425 8.939 770 4.665 3,080 -200 (D) 1,267 (D) 126,987 39,866 1,545 (D) 172 1,188 -60 (D) 3,479 -227 998 1,693 432 582 2,655 498 1.650 (D) (D) (D) (D) 41 186 -2.806 116 (D) 1,433 (D) -214 4.202 1.876 1.584 292 (D) 4,758 435 -192 (D) (D) 1,157 69 1.089 14,129 3.612 318 3.047 7.153 9,159 8,892 267 24,437 6,270 18,166 2,073 (0) (D) 6,509 (D) 1,056 742 (D) 24,900 20 (D) 5,108 (D) 2,659 8,516 -138 126 1,137 288 -24,564 2,250 1.491 (D) -230 10 407 (D) 1.458 -292 -608 2.641 -245 -38 237 1.072 -332 (D) (D) -348 ^95 -197 345 -5.082 -264 -2.820 -775 -1.020 -202 -768 1.957 2.205 -248 (D) 6,972 1.845 -531 (D) (D) ^39 132 -570 -11,628 -687 519 -8.924 -2,537 -5,063 -5,183 120 -11,305 -4,505 -6,800 -1,296 -875 -421 -722 -859 -866 866 137 -3,333 -55 -244 536 -7 -669 -2,395 -61 139 -472 -104 12,237 -7,675 2,146 -4,286 41 -399 21 (D) -7,898 -731 -3,225 -5.447 -too 1.605 87 193 1,622 1.238 384 (D) (D) 219 -4.527 -351 59 (D) 1.005 (D) 89 3.079 4.592 3.291 1.301 (D) 2,601 1,052 1,533 1,577 -1,561 616 421 195 6,593 4,902 -1,058 4,146 -1,398 -26 -26 998 111 888 100 (D) (D) -400 (D) 74 72 (D) 9,430 16 (D) 3,294 (D) 2,675 -3,040 -1 (D) 601 (D) 13,359 20,044 2,901 -53 -167 185 526 (D) 4,761 401 -433 4,419 266 109 436 1,731 510 149 360 980 28 -142 1,095 -3,307 -221 -2.572 176 -520 -170 -542 4,084 4,199 -115 (D) 9,690 2.303 -143 (D) (D) 653 820 -167 -9,003 758 640 -8.287 -2.114 -2,111 -2.260 150 -6,571 -3,027 -3,545 861 1,089 -228 -207 -789 -835 957 461 2 -2 213 1,094 144 -230 -2,087 668 342 -94 -45 7,642 4,259 650 (D) 26 4 -2 (D) 501 204 116 -77 (D) (D) 238 45 77 14 62 202 24 8 171 150 1 (D) 7 7 (D) 6 1,932 (D) (D) 303 2,093 1.285 118 13 677 3 -35 37 (D) 888 2 (D) -1 2 2 62 -9 72 56 (D) (D) 56 41 -12 46 -19 (D) 30 (D) 1 36 13 8 73 12 -4,659 1,141 196 58 12 47 54 (D) -482 52 -80 -438 (D) (D) 110 91 175 115 61 60 -27 29 59 -81 35 45 17 -55 -122 15 178 69 109 (D) -3,823 -132 -1.561 -14 -2.117 146 (D) (D) -174 304 -5 -204 -268 89 (D) (D) -810 -1,110 300 -19 (D) (D) -1.051 3 (D) 23 (D) -158 2 119 303 106 -707 1 11 (D) -9 (D) Bank and Nonbank Affiliates FDIUS: Final 2002 Results Table I.J 2. Selected Balance of Payments Data of All Affiliates, by Country of UBO ^ [Millions ol dollars) Direct investment position on a historical-cost basis (1) Capital inflows Total (2) Equity capital (3) Reinvested earnings (4) Intercompany debt (5) Direct investment income (6) Royalties and license lees, net 3 Charges for other services, net 3 (7) All countries Canada Europe Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Nora/ay Spain Sweden Switzerland United Kingdom Other Latin America and Other Western Hemispliere South and Central America Brazil Mexico Panama Venezuela Other Other Western Hemisphere Bahamas Bermuda Netherlands Antilles United Kingdom Islands, Caribbean , Other Africa South Africa Other Middle East Israel Kuwait , Lebanon Saudi Arabia United Arab Emirates Other Asia and Pacific Australia China Hong Kong India Japan Korea, Republic of Malaysia New Zealand Singapore Taiwan Other United States Addenda: European Union (15) OPEC 1,288,719 106,796 877,122 (D) (D) (D) (D) 122,883 156,884 (D) 16,900 5,675 (D) 1,956 6,569 (D) 50,527 (D) 1,694 96,980 (D) 2,179 (D) (D) (D) (D) (D) 149 63,049 (D) 14,480 (D) (D) 2,387 (D) 10,228 3,110 (D) 367 4,309 (D) 249 181,318 (D) 533 2,918 226 139,655 3,568 (D) 260 3,266 4,214 809 (D) 823,726 10,903 114,660 10,812 58,594 (D) (D) (D) (D) 1,085 7,311 (D) 3,717 (D) (D) (D) -364 984 3,283 (D) (D) 23,401 (D) 547 (D) (D) (D) (D) (D) 490 12,347 (D) 5,708 (D) (D) 615 (D) 1,400 571 (D) 3 380 (D) 602 18,916 (D) (D) 379 -26 8,474 316 (D) -25 1,114 (D) 6 (D) 55,205 559 126,987 8,954 60,568 115 (D) (D) 137 3,193 15,245 (D) 3.500 (D) (D) (D) (D) (D) (D) 16,677 (D) (D) (D) 94 (D) 27 5 14 (D) 163 (D) (D) 6,713 (D) 39 73 -34 (D) (D) 10 1 275 (D) (D) 22,954 (D) (D) (D) (D) 13,152 (D) (D) 9 755 (D) 37 (D) 55,067 331 -24,564 -3,769 -16,801 (D) 303 (D) (D) 238 -11,868 (D) -686 138 -252 ^65 (D) (D) (D) (D) -50 (D) -510 144 -293 (D) (D) (D) (D) 9 -7 (D) -130 (D) (D) -42 (D) (D) (D) (D) 1 -382 (D) (D) -1,537 -1,552 -22 45 (D) 108 (D) (D) -11 33 -132 -41 (D) -9^038 -529 12,237 5,627 14,827 -1 (D) 112 -668 -2,345 3,934 (D) 903 -189 6,653 191 74 -496 5,406 1,661 67 -7,645 (D) 309 -193 (D) (D) 120 (D) 319 (D) -29 -875 (D) 599 583 16 1,007 365 31 1 488 -29 152 -2,502 (D) -254 (D) 6 -4,787 -24 17 -23 326 239 9 323 9,176 756 13,359 (D) 6,643 (D) (D) (D) (D) 2,999 -6,857 (D) -16 256 4,224 -431 -284 (D) (D) 8,153 -15 3,930 -307 176 (D) (D) (D) (D) 4,236 -8 4,596 (D) -30 (D) (D) 7 (D) -295 87 45 3 -326 -12 -92 2,463 -994 (D) 94 ^8 3,286 208 -5 -8 53 -107 (D) (D) 10,433 -450 7,642 176 2,836 2 (D) 120 39 709 1,125 (D) 39 4 489 (D) (*) -160 552 -199 284 9 9 275 (D) (D) (D) (*) 4,352 69 (■) 2 4,134 (D) 2 (D) 2,234 -4,659 830 -2,007 (D) 35 -1 (D) (D) -128 27 31 (D) 944 (D) (D) -679 -359 (D) (D) (D) 191 1 184 (D) 1 (D) (D) (D) 132 6 -4 4 3 3 (D) -1 (*) (D) 1 (D) -3,559 (D) (D) 6 3 -2,890 -245 (D) (D) 3 16 -1,593 (D) 8 FDIUS: Final 2002 Results Bank and Nonbank Affiliates Table LA 2. Selected Financial and Operating Data of Majority-Owned Affiliates, by Industry of Affiliate Number of affiliates reporting ' (1) Number of companies consoiidated ■ (2) Ivlillions of dollars Total assets (3) Total liabilities (4) Owners' equity (5) Gross property, plant, and equipment Total (6) Of which: Commercial property ^ (7) Sales Total Of which: Sales of services " (9) Net income (10) Compensation of employees (11) Tfiousandsof employees All industries Manufacturing Food Beverages and tobacco products Textiles, apparel, and leatfier products Paper Printing and related support activities Petroleum and coal products Chemicals Basic chemicals Resins and synthetic rubber, fibers, and filaments Pharmaceuticals and medicines Soap, cleaning compounds, and toilet preparations Other Plastics and rubber products Nonmetallic mineral products Primary and fabricated metals Primary metals Fabricated metal products Machinery Agriculture, construction, and mining machinery Industrial machinery Other Computers and electronic products Computers and peripheral equipment Communications equipment Semiconductors and other electronic components Navigational, measuring, and other instruments... Other Electrical equipment, appliances, and components Transportation equipment Motor vehicles, bodies and trailers, and parts Other Other Wholesale trade Motor vehicles and motor vehicle parts and supplies Electrical goods Petroleum and petroleum products Other Retail trade Food and beverage stores Other Information Publishing industries Motion picture and sound recording industries Telecommunications Other Depository credit Intermediation (banking) Banks Branches and agencies Finance (except depository institutions) and Insurance Finance, except depository institutions Insurance carriers and related activities Real estate and rental and leasing Real estate Rental and leasing (except real estate) Professional, scientific, and technical services Architectural, engineering, and related services Computet systems design and related services Management, scientific, and technical consulting Other Other industries Agriculture, forestry fishing, and hunting Mining Utilities Construction Transportation and warehousing Management of nonbank companies and enterprises Administration, support, and waste management Health care and social assistance Accommodation and food services Miscellaneous services 5,185 1,768 143 33 52 46 28 11 234 55 38 60 18 63 114 84 219 99 120 229 23 55 151 156 22 22 51 45 16 66 254 224 30 99 999 58 131 33 777 106 16 90 171 76 19 43 33 265 226 39 368 262 106 583 565 18 196 40 60 26 70 729 51 70 36 88 119 105 59 11 138 52 31,211 10,009 499 224 114 226 161 278 1,424 449 238 412 too 225 379 920 875 401 474 1,306 228 176 902 1,370 55 172 140 420 583 292 1,129 879 250 812 3,475 200 398 399 2,478 861 376 485 1,919 544 483 324 568 923 882 41 3,604 1,740 1,864 3,253 3,178 75 1,085 269 119 110 587 6,082 118 706 741 1,020 886 195 444 608 1,067 297 6,780,199 1,021,478 77.836 26,938 3.951 18.425 9.825 (D) 204.009 36.804 31.461 105.551 10,501 19,692 24,992 58,730 45,346 23,898 21.448 96,302 40,234 6,480 49,588 97,161 4,883 28,452 19,105 27,707 17,014 26,126 216,942 198,786 18,156 (D) 405,104 86,322 31,847 122,532 164,403 60,663 38,526 22.137 250,598 86,933 46,478 74,322 42,865 2,207,060 2,148,469 58,591 2,287,191 1,318,748 968,444 90,623 76,611 14,012 57,108 8,579 7,108 10,577 30,843 400,374 4.315 64,238 71.668 18,774 45,651 115,541 25,003 9,038 38,768 7,377 5,824,985 758,083 57,036 20,904 3,001 13,184 8,907 (D) 145,139 27,232 20,412 76,798 6.659 14,038 17,341 38,713 33,561 17.282 16,279 66,945 27,201 4,243 35,501 71,482 4,321 22,240 12,410 22,350 10,161 17,333 177,573 162,006 15,567 (D) 250,265 69,646 18,828 53,622 108,170 49,448 33.704 15,742 176,229 74.405 20,136 55.155 26,532 2,131,847 2.074.359 57.488 2,147,267 1.266,876 880,391 60,197 51,694 8,503 33,408 8,424 3,965 2,750 18,269 218,243 2,062 43.277 46,554 13,565 31,537 30,907 16,433 5,623 23,666 4.619 955,214 263,395 20.799 6.034 950 5.241 918 (D) 58,871 9,572 11.049 28.753 3.843 5.654 7.651 20,016 11,785 6,616 5,169 29,356 13,032 2,237 14,087 25,679 562 6,212 6,695 5,357 6,853 8,793 39.369 36.781 2.589 (D) 154,839 16.676 13.019 68.910 56.234 11,217 4.821 6.395 74,369 12.527 26.342 19.166 16.333 75,213 74,110 1,103 139,925 51.872 88,053 30,427 24.918 5,509 23,699 156 3,143 7,826 12,574 182,131 2,253 20,961 25,114 5,209 14,114 84,634 8,570 3,415 15,102 2,759 1,035,916 487,692 23,155 6,776 3,385 16,077 5,992 (D) 105,227 32,874 24,820 34,299 2,836 10,399 17,873 45,450 29,904 17,675 12,230 23,759 5,933 2,343 15,483 37,305 1,977 8,234 11,970 8,830 6,294 8.682 106.594 101.665 4.929 (D) 182,144 37.167 8.828 (D) (D) 40,220 30.686 9.534 45,617 8.235 3.496 28.498 5.388 11,552 11,424 129 29,891 15.467 14,425 73,882 65,742 8.140 8,807 2,189 2,168 478 3,971 156,111 2,630 39,535 47.664 8,228 25,839 532 3,591 3,025 19,516 5,551 145,985 21,528 1,936 1,003 327 60 34 (D) 3,935 1,259 (D) 815 (D) 73 1,108 1,343 529 235 294 1,120 92 105 923 1,553 2 141 78 78 1,254 171 4,337 4,144 193 (D) 12,548 2,549 683 (D) (D) 16,163 13,625 2,538 4,060 568 (D) 237 (D) 3,172 (D) (D) 5,980 384 5,596 61,094 59,948 1,146 960 105 196 189 470 20,479 (D) 1,712 1,457 40 789 (D) 12,020 4,037 2,182,705 860,568 54,650 20,352 3,917 14,594 10,963 (D) 142,752 23,720 26,218 70,607 8,644 13,563 27,696 40,753 48,569 25,644 22,925 68,426 17,717 (D) (D) 92.429 9.814 19.203 18,352 22,298 22.763 19,439 201 ,062 187,737 13,324 (D) 583,660 129,929 57,656 160,240 235,835 120,605 86,492 34,113 75,786 31,385 (D) (D) 15,698 151,743 149,804 1,940 164,127 53.988 110.139 19,031 13,359 5,673 42,698 7,301 6,145 8,211 21.041 164,486 2.130 18.679 24.707 30,908 30,915 (D) 21,960 (D) 21,732 4,754 412,088 52,223 238 (D) 32 (D) (D) 1,523 907 105 477 33 82 177 288 84 204 (D) (D) 154 (D) 9,163 94 1,450 41 (D) (D) 500 (D) (D) 759 (D) 10,114 698 2,582 1,609 5,225 350 350 55,289 17,680 (D) 15,292 (D) 17,049 16,910 139 103,065 22,614 80,451 16,546 (D) (D) 40,232 5,268 5,940 8,199 20,825 117,221 123 8,107 22,722 2,158 30,795 (D) 21,483 6,766 19,931 (D) -55,975 -12,435 2,707 -1,340 -381 -1,128 270 (D) 2,697 23 -1,190 3,575 174 114 196 1,058 -408 106 -513 -963 -1,026 (D) (D) -9,068 -324 -5,324 -1,875 -960 -585 -745 2,340 2,720 -380 (D) 9,839 2.273 -472 3.970 4,068 -726 360 -1,086 -38,496 -794 (D) (D) -7,764 -1,002 -1,001 -1 -12,275 -4,568 -7,707 292 1,125 -833 31 -900 -792 1,320 402 -1,203 -20 -1,208 987 178 -89 (D) 369 (D) -564 -348 331,032 151,299 8,217 2,538 1,058 2,786 3,319 (D) 29,823 4,414 3,173 18,023 1,436 2,777 6,829 8,939 9,346 3,880 5,466 17,245 3,822 1,849 1 1 ,574 19,048 1,794 4,726 2,301 7,002 3,224 4,089 23,907 21,072 2,835 (D) 36,290 4.691 5,007 5.000 21,592 16,536 11,994 4.543 17,118 9.491 1.764 2.547 3.316 15,253 15.117 136 30.915 17.606 13.309 2,216 1,187 1,030 12,901 2,532 2,878 2,678 4,813 48,503 407 5,048 2,010 5,214 9,727 453 13,279 3,008 7,957 1,401 Note. The follov^ing ranges are given in employment cells that are suppressed. The size ranges are: A— 1 to 499; F— 500 to 999; G— 1 ,000 to 2,499; H— 2.500 to 4,999; 1—5,000 to 9,999; J— 10,000 to 24,999; K— 25,000 to 49,999; L— 50,000 to 99,999; M— 100,000 or more. Bank and Nonbank Affiliates FDIUS: Final 2002 Results Table I.A 3. Selected Financial and Operating Data of Majority-Owned Affiliates, by Country of UBO Number of Number of Millions of dollars Gross property, plant, Sales Thousands affiliates reporting ' companies consolidated ^ Total assets Total liabilities Owners' equity and eq uipmeni Net income Compensation of employees of Of which: Of which: employees Total Commercial property ^ Total Sales of services ' (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) All countries 5,185 31,211 6,780,199 5,824,985 955,214 1,035,916 145,985 2,182,705 412,088 -55,975 331,032 5,570.4 Canada 496 3,662 537,547 455,385 82,161 88,397 (D) 136,940 43,652 -5,382 26,999 493.0 Europe 2,423 17,631 5,086,558 4,453,099 633,460 657,707 67,686 1,342,787 280,751 -31,142 229,154 3,858.2 Austria 33 83 (D) (D) (D) (D) 147 (D) 178 (D) (D) 1 Belgium 66 251 64,687 52,407 12,281 (D) (D) (D) (D) (D) 3,995 135.6 Denmarl( 47 129 (D) (D) (D) (D) 286 (D) (D) (D) (D) K Finland 35 182 (D) (D) (D) (D) (D) (D) 1.685 (D) (D) K France 309 2,460 647,857 533,074 114,783 69,117 (D) 182,239 46.940 -2,551 29,941 480.1 Germany 617 3.541 1,010,623 896,039 114,584 181,984 21.221 321.624 51,256 -26,536 51.904 707.7 Ireland 30 257 (D) (D) (D) (D) 603 (D) (D) (D) (D) K Italy 147 553 65,874 53.757 12,117 12.368 595 25.452 2,728 -606 4.286 93,5 Luxembourg 19 62 7,617 3,877 3,741 3,442 247 3.539 950 90 543 13.7 Netlierlands 173 2.285 803.539 745,710 57.829 (D) (D) 228.297 47,977 2,248 (D) M Norway 33 269 (D) (D) (D) (D) 121 (D) (D) (D) (D) J Spain 55 192 39.841 34,347 5,493 3.211 387 6.866 1,715 -287 1.057 23.3 Sweden 84 455 86,007 78,102 7,905 (D) 1,104 42,931 (D) -544 9,282 225,1 Switzerland 214 1.613 1 .094.345 1.062,441 31,903 (D) 2,833 (D) 35.027 (D) 32,421 448.2 United Kingdom 516 5,117 1.134,890 875.650 259,240 211.882 (D) 334,263 74.195 3,223 56,032 1,022.9 Other 45 182 11,007 9.691 1,315 2.461 (D) 6,411 226 69 (D) J Latin America and Other Western Hemlsptiere 309 2,402 269,818 205,677 64,141 66,600 5,223 125,072 35,860 -13,322 22,275 347.2 South and Central America 181 626 (D) (D) (D) (D) 1,195 (D) 2.331 (D) (D) L Brazil 34 72 14.556 12,430 2,126 1,820 (D) (D) 427 (D) 427 6.0 Mexico 74 329 (D) (D) (D) 6.489 394 (D) 1.027 (D) 2,308 46.3 Panama 18 86 (D) (D) (D) (D) 257 (D) 444 (D) (D) 1 Venezuela 18 60 (D) (D) (D) (D) 115 (D) 253 (D) (D) 1 Other 37 79 (D) (D) (D) 562 (D) 2,791 180 -24 238 5.0 Other Western Hemisphere 128 1,776 (D) (D) (D) (D) 4,028 (D) 33.529 (D) (D) M Bahamas 9 67 1,073 860 213 409 154 351 127 5 85 2.5 Bermuda 52 1,154 136,161 104,069 32,092 35.510 1.368 62,324 21.974 -12,165 14,073 215.4 Netherlands Antilles 13 77 (D) (D) (D) (D) 159 4,584 (D) -353 (D) J United Kingdom Islands, Caribbean 45 420 60,224 45,713 14.511 7.714 2,329 9,948 6.361 -224 1,831 27.0 Other 9 58 5.416 4,571 844 (D) 19 (D) (D) (D) (D) J Africa 32 87 (D) (D) (0) (D) 214 (D) (D) (D) (D) J 18 14 66 21 5,061 (D) 3,774 (D) 1.287 (D) 3.398 (D) 22 192 4.876 (D) 450 (D) -36 (D) 741 (D) 10.2 Other F Middle East 162 42 785 107 50,685 27,020 41,058 24,544 9,627 2,476 18,552 1.162 (D) (D) 31,512 4,081 2,853 289 -605 -4 2,481 601 49.4 Israel 10,4 Kuwait 19 68 (D) (D) (D) (D) (D) (D) (D) (D) (D) F Lebanon 11 153 870 609 261 903 438 436 (D) 5 105 2.6 Saudi Arabia . . 54 14 22 212 140 105 11,986 (D) 4,785 6,942 (D) 4,769 5,044 (D) 16 11,114 (D) 1,206 4,754 2,406 (D) (D) (D) (D) (D) 392 710 (D) (D) (D) 806 (D) 849 10.9 United Arab Emirates G Other 22.8 Asia and Pacific 1,710 70 6,398 1,010 806,050 81,761 647,149 59,188 158,901 22,573 192,971 (D) 46,526 (D) 523,160 23.366 45,662 12.023 -4,727 -6,111 46,492 3,670 771.7 Australia 55,6 China 15 52 3,725 3,309 416 (D) (D) 2.126 (D) 22 235 3.8 72 21 441 22 8,055 2,020 6,165 1,823 1,890 197 4,739 147 (D) 8 4.899 573 1,327 333 54 -50 529 122 12.5 India 2.0 Japan 1.276 4,185 648,143 523,556 124,587 148,794 (D) 443.264 27,025 1.575 38,820 637.2 Korea, Republic of 66 127 18,102 16,548 1,554 5.953 744 30.890 585 355 847 13.1 Malaysia 14 88 (D) (D) (D) (D) 257 (D) (D) (D) (D) 1 New Zealand 8 33 17 156 359 12,422 193 9.974 166 2,449 60 5.314 6 (D) 1,043 5,646 20 2,899 -9 -192 25 953 0.4 Singapore 20-6 Taiwan 97 213 26,477 22,998 3,479 6.898 814 9,826 611 -385 927 17.5 Other 38 87 (D) (D) (D) 1.070 746 (D) (D) (D) (D) H United States 53 2.146 120 246 15,670 516 (D) 3,982.825 37.052 (D) 3,383,171 25,657 (0) 599,654 11.395 (D) 617.528 21.692 722 64,293 8,771 (D) 1,216.095 (D) (D) 244,248 (D) (D) -25.539 (D) (D) 195,281 (D) K Addenda: European Union (15) 3,384.4 OPEC J Note. The following ranges are given in employment cells that are suppressed. The size ranges are: A— 1 to 499; F- 49.999; L-50.000 to 99.999; M-1 00.000 or more. -500 to 999; G— 1,000 to 2,499; H— 2,500 to 4,999; 1—5,000 to 9,999; J— 10,000 to 24,999; K— 25.000 to 10 FDIUS: Final 2002 Results Bank and Nonbank Affiliates Table LA 9. Selected Financial and Operating Data of Majority-Owned Affiliates, by State Gross property, plant, and equipment (millions of dollars) Total (1) Of which: Commercial property ' (2) Thousands of employees (3) Total New England: Connecticut lulaine Massactiusetts New Hampsfiire Rfiode Island Vermont li/lideast: Delaware District of Columbia Maryland New Jersey New York Pennsylvania Great Lakes: Illinois Indiana IVIictiigan Ofiio Wisconsin Plains: Iowa Kansas Ivlinnesota Missouri Nebraska Norlti Dakota Soutti Dakota Southeast: Alabama Arkansas Florida Georgia Kentucky Louisiana Mississippi North Carolina South Carolina Tennessee Virginia West Virginia Southwest: Arizona New Mexico Oklahoma Texas Rocky Mountains: Colorado Idaho Montana Utah Wyoming Far West: Alaska California Hawaii Nevada Oregon Washington Puerto Rico Other U.S. areas Foreign Unspecified ^ 1,035,916 (D) 5,511 (D) (D) (D) 1,286 6,252 5,135 (D) 30,956 68,310 (D) 41,862 27,991 (D) 32,124 16,103 5,776 5,238 9,805 14,484 1,840 1,100 685 15.520 4.872 28,993 (D) 24,091 26.993 5.097 (D) 21.573 16.795 (D) 7.388 (D) (D) 7,434 88,116 13,026 2,131 1,824 10,612 10,551 30,052 89,193 (D) (D) (D) (D) 2,583 (D) 2,328 66,341 145,985 (D) (D) (D) (D) (D) 231 295 2,718 2,722 6,167 22,265 (D) (D) 1,129 (D) 4,333 650 247 425 1,359 1,808 198 69 28 441 259 10,434 (D) 956 517 297 (D) 1,649 2,138 3,157 174 1,329 (D) 176 9,286 1,964 128 20 315 13 (D) (D) P] (D) (D) 3,120 (D) 839 (D) 5,570.4 M 31,7 M K K 11.1 23,6 17.5 M 230.1 440.8 M 281.5 133.3 M 214.2 107.1 36.6 34.9 88.1 91.5 18.7 7.4 7.6 75.1 35.7 258.3 191.4 884 50.5 25.8 M 133.1 130.7 142.2 22.7 57.6 13.0 33.9 353.0 77.7 12.5 5.9 32.3 8.5 12.6 635.3 K 25.9 51.3 84.7 19.8 10.2 0.3 0.0 Note. The following ranges are given in employment cells that are suppressed. The size ranges are: A— 1 to 499: F— 500 to 999: G— 1 .000 to 2,499; H— 2,500 to 4,999: 1—5,000 to 9,999; J— 10,000 to 24,999; K— 25,000 to 49,999; L-50,000 to 99,999; IVl-1 00,000 or more. Part II All Nonbank Affiliates 11 All Nonbank Affiliates FDIUS: Final 2002 Results 13 Table II.A 1. Selected Financial and Operating Data of Affiliates [Millions of dollars, except as noted] All nonbank affiliates (1) Majority-owned nonbank affiliates (2) Ottier nonbank affiliates (3) Number of affiliates that were required to file a report ' Number of companies consolidated on atfiliate reports Number of affiliates that filed exemption claims ' Total assets Total liabilities Owners' equity Gross property, plant, and equipment Commercial property ' Other Expenditures for property, plant, and equipment ^ Land owned (thousands of hectares) ' Sales Net income Compensation of employees Employment (thousands) Manufacturing employees (thousands) ' Other employees (thousands) U.S. exports of goods U.S. imports of goods Research and development performed by affiliates n.a. Not available 5,664 33,436 8,702 5,229,812 4,192,915 1,036,896 1,192,710 169,671 1 ,023,040 127,379 3,845 2,216,530 -57,011 341,935 5,925.1 1,930.1 3,995.0 150,147 348.111 30,18 4,920 30,288 n.a. 4,573,139 3,693,138 880,001 1 ,024,364 142,812 881,552 111,373 3,312 2,030,962 -54,973 315,779 5,425.4 1,811.9 3,613.5 140,510 335,021 27,507 744 3,148 n.a. 656,673 499,777 156,896 168,346 26,858 141,488 16,006 532 185,568 -2,038 26,156 499.7 118.1 381.6 9,637 13,089 2,681 14 FDIUS: Final 2002 Results All Nonbank Affiliates Table II.A 2. Selected Financial and Operating Data of Affiliates, by Industry of Affiliate— Continues ISI code (1) Millions of dollars Total assets (2) Gross property, plant, and equipment (3) Expenditures for property, plant, and equipment (4) Sales (5) Net income (6) Compensation of employees (7) Ttiousands of employees Millions of dollars U.S. exports of goods shipped by affiliates (9) U.S. imports of goods stiipped to affiliates (10) Research and development performed by affiliates All industries Manufacturing Food Animal foods Grain and oilseed milling Sugar and contectionery products Fruit and vegetable preserving and specialty foods Dairy products Meat products Seafood product preparation and packaging Bakeries and tortillas Other food products Beverages and tobacco products Beverages Tobacco products Textiles, apparel, and leather products Textile mills Textile product mills Apparel Leather and allied products Paper Pulp, paper, and paperboard mills Converted paper products Printing and related support activities Petroleum and coal products Integrated petroleum refining and extraction Petroleum refining excluding oil and gas extraction Asphalt and other petroleum and coal products Chemicals Basic chemicals Resins and synthetic rubber, fibers, and filaments Pharmaceuticals and medicines Soap, cleaning compounds, and toilet preparations Other Pesticides, fertilizers, and other agricultural chemicals Paints, coatings, and adhesives Other chemical products and preparations Plastics and rubber products Plastics products Rubber products Nonmetallic mineral products Clay products and refractories Glass and glass products Cement and concrete products Lime and gypsum products Other nonmetallic mineral products Primary and fabricated metals Primary metals Iron and steel mills and ferroalloys Steel products from purchased steel Alumina and aluminum production and processing Nonferrous metal (except aluminum) production and processing Foundries Fabricated metal products Forging and stamping Cutlery and handtools Architectural and structural metals Boilers, tanks, and shipping containers Hardware Spring and wire products Machine shops, turned products, and screws, nuts, and bolts Coating, engraving, heat treating, and allied activities Other fabricated metal products Machinery Agriculture, construction, and mining machinery Industrial machinery Other Commercial and service industry machinery Ventilation, heating, air-conditioning, and commercial refrigeration equipment Metalworking machinery Engines, turbines, and power transmission equipment Other general purpose machinery Computers and electronic products Computers and peripheral equipment Communications equipment Semiconductors and other electronic components Navigational, measuring, and other instruments Other Audio and video equipment Magnetic and optical media Electrical equipment, appliances, and components Electric lighting equipment Household appliances Electrical equipment Other electrical equipment and components 3111 3112 3113 3114 3115 3116 3117 3118 3119 3121 3122 3130 3140 3150 3160 3221 3222 3231 3242 3243 3244 3251 3252 3254 3256 3253 3255 3259 3261 3262 3271 3272 3273 3274 3279 3311 3312 3313 3314 3315 3321 3322 3323 3324 3325 3326 3327 3328 3329 3331 3332 3333 3334 3335 3336 3339 3341 3342 3344 3345 3343 3346 3351 3352 3353 3359 5,229,812 1,074,144 79,206 (D) (D) 788 1,717 4,049 (D) (D) (D) 38,183 29,233 25,230 4,003 4,810 2,472 (D) 1,463 (D) 19,498 (D) (D) (D) (D) (D) 8,684 (D) 221,774 39,735 32,120 111,432 (D) (D) (D) 8,641 6,705 28,156 (D) (D) 59,639 (D) 11,116 39,487 (D) (D) 51,540 28,227 11,575 3.356 (D) (D) 736 23,313 (D) (D) (D) 2,865 2,669 1,868 (D) 1,524 5,185 96,762 (D) (D) 49,639 16,026 3,307 2,430 (D) (D) 106,670 4,883 30,343 19,866 (D) (D) (D) (D) 26,238 (D) (D) (D) 4,824 1,192,710 523,432 24,184 (D) (D) 692 1,259 (D) (D) (D) (D) 6,138 7,519 (D) (D) 3,832 2,316 (D) 1,136 (D) (D) (D) (D) (D) 45,600 (D) 11,124 (D) 114,679 36,040 25,631 35,321 (D) (D) (D) (D) 4,776 20,182 (D) (D) 46,737 (D) 8,713 30,448 (D) (D) 35,459 21,712 9,259 3,098 (D) (D) 874 13,748 (D) (D) (D) (D) 812 1,827 (D) 1,660 3,193 23,974 (D) (D) 15,516 2,911 1,248 1,450 (D) (D) 41,166 1,977 (D) 12,552 9,177 (D) (D) (D) 8,717 (D) (D) (D) 2,378 127,379 48,872 1,931 (D) 242 34 75 (D) 23 42 321 503 781 (D) (D) 244 109 (D) 64 (D) 1,388 1,010 378 (D) (D) (D) (D) (D) 8,620 1,920 1,542 3,201 (D) (D) 208 134 (D) 1,270 (D) (D) 2,767 120 483 2,059 64 41 1,824 1,048 335 177 261 221 54 776 201 (D) (D) 102 29 60 49 34 195 3.088 411 247 2,429 372 82 73 (D) (D) 2,995 302 (D) 698 667 (D) (D) (D) 1,389 91 192 138 968 2,216,530 919,666 57,832 (D) (D) 993 1,857 (D) (D) (D) (D) 16,188 22,506 (D) (D) 4,875 2,386 (D) 1,749 (D) 15,125 (D) (D) (D) 81,438 (D) 21,944 (D) 158,990 26,150 26,886 75,403 (D) (D) 3,420 5,674 (D) 31 ,005 (D) (D) 41,939 (D) 9,566 26,134 (D) (D) 55,615 30,213 10,741 4,852 (D) (D) 1,013 25,402 (D) (D) (D) 3.291 1.679 1.915 (D) 2.071 5.608 69.207 (D) (D) (D) 6.591 3,539 2.656 (D) (D) 100.534 9.814 20,956 (D) 23.506 (D) (D) (D) 19.541 4.228 (D) (D) 2.496 -57,011 -10,647 2.754 (D) (D) -11 -53 (D) (D) (D) (D) 2.955 -1 ,288 (D) (D) -381 ^34 (D) 17 (D) -1,137 (D) (D) (D) 1,568 (D) -319 (D) 3,995 24 -1,207 4,588 (D) (D) -194 95 (D) 271 (D) (D) 920 (D) ^65 1.464 (D) (D) -120 300 191 238 (D) (D) 3 -420 (D) (D) (D) -243 54 -93 (D) 98 130 -1.136 (D) (D) (D) -182 124 -224 (D) (D) -8.788 -324 -5.273 (D) -902 (D) (D) (D) -761 21 (D) (D) -221 341,935 159,537 8.659 (D) (D) 142 272 (D) (D) (D) 1.717 2.586 (D) (D) 661 1.389 683 (D) 528 (D) 2.814 1.622 1.192 (D) 4.604 (D) (D) (D) 31.955 4,523 3,194 18,520 (D) (D) 551 1,233 (D) 7,538 (D) (D) 9,176 1,055 2,281 5,439 224 177 10,144 4,374 1,779 517 941 941 196 5,771 1,617 (D) (D) 770 452 500 213 162 1,367 17,362 3,851 1,920 11,590 1,702 840 694 (D) (D) 20,704 1.794 5,123 (D) 7,250 (D) (D) (D) 4,117 784 (D) 1.901 (D) 5,925.1 2,371.8 149.1 K J 3.6 6.8 J 32.7 34.4 L L 8.5 29.4 15.3 H 10.7 A 42.9 23.2 19.7 L 33.8 K H G 342.0 56.3 40.3 162.5 K K 6.7 17.3 J 141.3 L L 159.3 19.9 43.6 89.2 3.7 2.9 166.1 62.3 19.6 8.5 13.1 16.4 4.8 103.8 28.5 H J 10.0 10.2 9.7 3.8 2.5 26.1 259.3 58.5 26.7 174.1 32.2 16.7 12.1 L K 271.1 24.1 54.4 K 100.8 K K J 80.5 20.5 J 25.7 J 150.147 94,851 3.891 (D) (D) 29 60 68 (D) (D) 31 692 878 (D) (D) 458 345 (D) 61 (D) (D) (D) 536 264 1.295 (D) (D) (D) 15.186 3.938 2.969 5,878 (D) (D) (D) 366 (D) 2,651 842 1,809 1,456 (D) 756 136 16 (D) 4,476 (D) (D) (D) (D) 407 52 (D) 392 (D) 66 98 74 195 59 153 643 8,367 (D) (D) 4,252 434 299 362 (D) (D) 16.009 2.625 (D) 4,424 3,092 (D) (D) (D) 3,066 (D) (D) 1,576 217 348,111 147,370 2,370 107 (D) 266 94 137 177 (D) 109 742 2,037 1,820 216 471 194 (D) 209 (D) 2,724 2,339 385 625 10,050 (D) 8,347 (D) 19,069 2,253 3,355 1 1 ,354 (D) (D) (D) 230 590 4,561 (D) (D) 1,546 204 (D) 811 13 (D) 8,432 (D) 991 (D) (D) 766 130 (D) (D) (D) 31 94 65 211 101 36 1,000 (D) (D) (D) (D) 218 155 564 (D) 1.514 29.403 (D) 4.267 5,043 3,929 (D) (D) (D) 1.690 337 (D) 703 (D) All Nonbank Affiliates FDIUS: Final 2002 Results 15 Table II.A 2. Selected Financial and Operating Data of Affiliates, by Industry of Affiliate— Continues ISI code (1) illions of dollars Total assets Gross property, plant, and equipment (2) (3) Expenditures lor property, plant, and equipment (4) Sales (5) Net income (6) Compensation of employees (7) Thousands of employees (8) IVIiliions of dollars U.S. exports of goods shipped by affiliates (9) U.S. imports of goods shipped to affiliates (10) Research and development performed by affiliates (11) Transportation equipment Motor vehicles, bodies and trailers, and parts Motor vehicles Motor vehicle bodies and trailers Motor vehicle parts Other Aerospace products and parts Railroad rolling stock Ship and boat building Other transportation equipment Other Wood products Furniture and related products Miscellaneous manufacturing Medical equipment and supplies Other miscellaneous manufacturing Wholesale trade Motor vehicles and motor vehicle parts and supplies Electrical goods Petroleum and petroleum products Other Other durable goods Furniture and home furnishings Lumber and other construction materials Professional and commercial equipment and supplies Metals and minerals (except petroleum) Hardware, and plumbing and heating equipment and supplies Machinery, equipment, and supplies l\/liscellaneous durable goods Other nondurable goods Paper and paper products Drugs and druggists' sundries Apparel, piece goods, and notions Grocery and related products Farm product raw materials Chemical and allied products Beer, wine, and distilled alcoholic beverages Miscellaneous nondurable goods Wholesale electronic markets and agents and brokers Retailtrade Food and beverage stores Other Motor vehicle and parts dealers Furniture and home furnishings stores Electronics and appliance stores Building material and garden equipment and supplies dealers Health and personal care stores Gasoline stations Clothing and clothing accessories stores Sporting goods, hobby book, and music stores General merchandise stores Miscellaneous store retailers fJonstore retailers Information Publishing industries Newspaper, periodical, book, and database publishers Software publishers Motion picture and sound recording industries Motion picture and video industries Sound recording industries Telecommunications Wired telecommunications carriers Wireless telecommunications carriers (except satellite) Telecommunications resellers Satellite telecommunications Cable and other program distribution Other telecommunications Other Broadcasting (except internet) Radio and television broadcasting Cable and other subscription programming Internet publishing and broadcasting Internet service providers, web search portals, and data processing services Internet service providers and web search portals Data processing, hosting, and related services Other informalion services Finance (except depository institutions) and insurance Finance, except depository institutions Nondepository credit intermediation and related services Nondepository credit intermediation Activities related to credit intermediation Securities, commodity contracts, and other intermediation and related activities Securities and commodity contracts intermediation and brokerage Other financial investment activities and exchanges Funds, trusts, and other financial vehicles Insurance carriers and related activities Insurance carriers, except lite insurance carriers Life insurance carriers Agencies, brokerages, and other insurance related activities Real estate and rental and leasing Real estate Rental and leasing (except real estate) Automotive equipment rental and leasing Other rental and leasing services Lessors of nonfinancial intangible assets (except copyrighted works) Professional, scientific, and technical services Architectural, engineering, and related services Computer systems design and related services Management, scientific, and technical consulting 3361 3362 3363 3364 3365 3366 3369 3210 3370 3391 3399 4231 4236 4247 4232 4233 4234 4235 4237 4238 4239 4241 4242 4243 4244 4245 4246 4246 4249 4251 4450 4410 4420 4431 4440 4461 4471 4480 4510 4520 4530 4540 5111 5112 5121 5122 5171 5172 5173 5174 5175 5179 5151 5152 5161 5181 5182 5191 5224 5223 5231 5238 5252 5243 5249 5242 5310 5321 5329 5331 5413 5415 5416 221,679 203,269 162,031 50 41,188 18,409 17,136 986 (D) (D) 62,956 2,272 1,115 59,569 (D) (0) 413,782 87,380 32,101 124,948 169,353 76,427 1,729 4,643 27,209 (D) (D) 14,983 9,586 (D) 9,525 21,731 11,360 5,743 5,753 8,665 (D) (D) (D) 69,441 38,526 30,915 (D) (D) 1,698 4 (D) 1,895 (D) 1,476 (D) (D) 5,280 335,138 (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) 46,182 (D) (D) 2,510 (D) (D) (D) (D) 13,632 2,724,996 1,322,852 (D) (D) 7,386 (D) (D) 53,483 4,769 1,402,144 858,394 (D) (D) 105,953 90,806 15,146 (D) (D) (D) 59,224 (D) 7,573 10,614 111,376 106,309 (D) (D) 27,542 5,067 4,705 165 (D) (D) 16,301 977 603 14.721 (D) (D) 185,319 (D) 8,877 (D) 39.677 (D) 543 867 8,821 (D) 1,338 3,567 1,977 19,309 3,473 3,705 (D) 3,122 (D) 2,496 (D) 2,714 (D) 46,315 30,686 15,629 (D) 1,108 389 1 (D) 1,524 (D) 417 (D) (D) (0) (D) 9,734 (D) (D) 3,498 (D) (D) (D) (D) (D) 320 10,919 (D) (D) 6,272 (D) (D) (D) (D) (D) (D) (D) 2,514 (D) 15,628 (D) (D) (D) (D) 3,864 (D) 68 (D) (D) 8,853 301 88,218 79,296 8,922 (D) (D) (D) 9,193 (D) 2,264 491 15,048 14.769 12,136 3 2,630 279 229 31 (D) (D) 3,224 (D) (D) (D) (D) 144 21,785 9,825 729 (D) (D) (D) 42 100 811 (D) 98 357 192 (D) 58 662 (D) 406 66 176 31 199 (D) 5,336 3,375 1,961 (D) (D) (D) (*) (D) 276 (D) 48 (D) 7 137 (D) 1.221 (D) (D) 330 192 138 (D) (D) (D) 28 (D) (D) (D) 623 (D) (D) (D) (D) 7 (D) (D) 280 (D) 4,788 (D) (D) (D) (D) 539 (D) 8 (D) (D) 362 43 8,494 7,335 1,159 (D) (D) (D) 1,045 271 344 58 209,454 195,572 139,352 109 55,111 13,882 12,529 966 (D) (D) (D) 2,275 1,688 (D) (D) (D) 602,684 132,137 58,055 166,098 246,394 130,415 2,948 9,808 42,971 24,117 (D) 24,012 (D) (D) 14,320 22.928 9,141 14,587 (D) 18.681 6,668 (D) (D) 134,622 86,492 48,130 (D) (D) (D) 5 (D) 6,630 (D) 1,233 (D) (D) 7,513 101,318 34,609 (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) 17,939 (D) (D) 1,525 (D) (D) (D) (D) 5,065 (D) 55,183 9,279 (D) (D) (D) (D) 7,535 (D) (D) (D) (D) 1.959 22,090 16,280 5,810 (D) (D) (D) 44,013 (D) 6,384 8,224 2,235 2,620 2,923 4 -307 -385 -386 -9 (D) (D) (D) 29 59 (D) (D) (D) 10,616 2,226 ^89 4,116 4,763 903 47 2 140 174 (D) -1 (D) (D) ^11 4,092 127 146 (D) -14 -342 (D) (D) -780 360 -1,140 (D) (D) (D) -2 (D) -6 (D) -214 (D) (D) -970 -44,233 -8,429 (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) -7,602 (D) (D) 118 (D) (D) (D) (D) -1,431 (D) ^,378 456 (D) (D) (D) (D) -1,576 (D) (D) (D) (D) -13 336 1.150 -814 (D) (D) (D) -986 (D) -1,554 1,314 24,850 21.902 (D) 15 (D) 2.948 2,662 191 (D) (D) (D) 475 209 (D) 8,189 (D) 37,849 5,062 5,044 (D) (D) (D) 259 (D) 4,778 (D) 1,314 2,147 1,476 10,285 1,358 3,274 1,105 1,457 224 1,118 855 895 (D) 19,198 11,994 7,204 (D) 330 (D) (*) (D) 228 (D) (D) (D) (D) (D) 21,945 10,985 (D) (D) 1,768 1,064 703 (D) 849 (D) (D) 280 (D) (D) (D) 1,746 (D) (D) (D) 78 (D) (D) (D) 34,503 (D) (D) 702 (D) 16,795 13,479 3,316 30 (D) (D) 4,925 966 2,351 1,319 1,032 (D) (D) (D) 13,487 (D) 3.147 2,683 407.0 357.8 M 04 M 49.1 44,2 3,1 G F M 16.1 12.0 M 125.2 J 546.7 59.0 70.0 L M M 5.4 J 75.6 J 27.0 36.5 19.6 152.6 23.9 33.7 26,4 29.5 3.4 14.8 4.3 16.7 F 678.1 4309 247,2 J 17.0 J (•) K 8.3 L G L H K 313.6 136.4 M K 337 27.3 6.4 L 7.6 L H 2.7 A A L 25.6 J I 1.5 F F K 284.1 L I 5.2 H 82,4 67,1 15,4 0.2 M M 56.9 9.5 35.7 18.2 17.6 G J A 170.9 K 31,1 38.1 31,307 28,816 (D) 6 (D) 2,491 2,409 55 9 19 (D) 134 56 (D) 3,257 (D) 50,246 (D) (D) (D) 29,954 15,282 125 1,882 4,491 2,286 (D) (D) 1,121 14,672 580 610 257 1,013 (D) (D) 79 1,627 (D) 1 (D) 2 (D) (D) 14 2 (D) 114 (D) (D) 781 660 122 284 (D) (D) (D) 1 (D) (*) (•) 251 9 242 242 406 326 12 (') 53,033 (D) 40.519 6 (D) (D) (D) 163 (D) (0) (D) (D) 131 (D) (D) (D) 191,410 (D) 30.230 22.638 (D) (D) 1,306 1,653 (D) 8,145 (D) 6.265 7,439 23.473 3.320 (D) 3.649 (D) 684 2,810 3,329 2,064 4,740 460 4,279 (D) (D) 106 (D) (D) (D) (D) 22 835 865 163 163 1 (D) (D) 2 (D) (D) (D) (*) 1 (D) (D) (D) (D) (D) (D) (D) 317 96 78 3.375 3.113 (D) 4 (D) 262 238 23 1 (•) 716 7 (D) (D) 614 (D) 5,117 (D) 1,085 (D) 3,468 696 5 (•) 370 (D) (•) (D) 201 2,773 (*) 2,698 14 14 16 17 13 (D) (■) (D) 2 (•) (D) (D) (D) (D) (D) 3 3 19 1 15 1 3 52 (D) (D) (D) (D) (D) (D) (•) (*) (D) (D) 5 (•) 6 5 1 (D) (D) 1,552 86 292 3 16 FDIUS: Final 2002 Results All Nonbank Affiliates Table II.A 2. Selected Financial and Operating Data of Affiliates, by Industry of Affiliate ISI code (1) Millions of dollars Total assets (2) Gross property, plant, and equipment (3) Expenditures tor property, plant, and equipment (4) Sales (5) Net income (6) Compensation ot employees (7) Ttiousands of employees (8) llions of dollars U.S. exports of goods shipped by affiliates (9) U.S. imports of goods shipped to affiliates (10) Research and development performed by affiliates Other Legal services Accounting, tax preparation, bookkeeping, and payroll services Specialized design services Scientific research and development services Advertising and related services Other professional, scientific, and technical services Other industries Agriculture, forestry fishing, and hunting Crop production Animal production Forestry and logging Fishing, hunting, and trapping Support activities for agriculture and forestry Mining Oil and gas extraction Mining (except oil and gas) Coal mining Metal ore mining Iron ores Gold and silver ores Copper, nickel, lead, and zinc ores Other metal ores Nonmetallic mineral mining and quarrying Support activities for mining Support activities for oil and gas extraction Support activities for mining, except for oil and gas extraction Utilities Electric power generation, transmission, and distribution Natural gas distribution Water, sewage, and other systems Construction Construction of buildings Heavy and civil engineering construction Special trade contractors Transportation and warehousing Air transportation Rail transportation Water transportation Petroleum tanker operations Other water transportation Truck transportation Transit and ground passenger transportation Pipeline transportation Pipeline transportation of crude oil, refined petroleum products, and natural gas Other pipeline transportation Scenic and sightseeing transportation Support activities lor transportation Couriers and messengers Warehousing and storage facilities Petroleum storage for hire Other warehousing and storage Management of nonbank companies and enterprises Holding companies, except bank holding companies Corporate, subsidiary, and regional management offices Administration, support, and waste management Administrative and support services Office administrative services Facilities support services Employment services Business support services Travel arrangement and reservation services Investigation and security services Services to buildings and dwellings Other support services Waste management and remediation services Health care and social assistance Ambulatory health care services Hospitals Nursing and residential care facilities Social assistance Accommodation and food services Accommodation Food services and drinking places Miscellaneous services Educational services Arts, entertainment, and recreation Performing arts, spectator sports, and related industries Museums, historical sites, and similar institutions Amusement, gambling, and recreation industries Other services (except public administration and private households) Repair and maintenance Personal and laundry services Religious, grantmaking, civic, professional, and similar organizations 5411 5412 5414 5417 5418 5419 1110 1120 1130 1140 1150 2111 2121 2124 2125 2126 2127 2123 2132 2133 2211 2212 2213 2360 2370 2380 4810 4821 4833 4839 4840 4850 4863 4868 4870 4880 4920 4932 4939 5512 5513 5611 5612 5613 5614 5615 5616 5617 5619 5620 6210 6220 6230 6240 7210 7220 6110 7110 7121 7130 8110 8120 8130 (D) (D) 61 (D) 2,693 24,002 5,494 447,134 4,533 2,121 (D) (D) (D) (D) 73,265 (D) 31,353 19,895 10,001 1,119 (D) (D) (D) 1,457 (D) (D) (D) 78,539 66,021 (D) (D) 20,667 15,265 (D) (D) 54,322 278 (D) 2,589 53 2,536 929 14,588 12,101 12,101 105 9,226 (D) 3,840 (D) (D) 124,801 124,217 584 29,759 25,371 (D) (D) 4,132 1,008 (D) 2,714 (D) 514 4,388 (D) (D) (D) 1,198 (D) 43,625 29,952 13,673 (D) 627 7,073 (D) (D) 4,810 (D) (D) (D) (D) (D) (D) 14 (D) 1,227 2,101 (D) 192,673 2,757 896 (D) 400 (D) (D) 50,263 (D) 25,979 (D) (D) 1,838 (D) 2,139 (D) 951 (D) (D) (D) 51,486 43,593 (D) (D) 9,339 7,087 (D) (D) 37,021 (D) (D) 1,932 5 1,927 280 4,558 12,274 12,274 71 4,974 (D) (D) (D) (D) 606 482 124 6,563 3,673 (D) 18 419 246 (D) (D) (D) (D) 2,891 (D) (D) (D) 1,105 (D) 24,905 20,950 3,955 (D) 187 6,045 (D) (D) 4,729 (D) 404 (D) (D) 372 (D) 1 (D) 157 141 71 19,488 247 114 112 12 (D) (D) 3,875 (D) 1,353 986 313 21 229 (D) (D) 54 (D) (D) (D) 6,495 4,613 (D) (D) (D) (D) (D) (D) 2,598 16 (D) 118 1 118 44 623 328 328 10 718 (D) (D) (D) (D) 86 (D) (D) (D) (D) (D) 2 26 79 (D) 57 (D) 4 42 272 (D) (D) (D) (D) 1,544 1,023 521 444 22 376 (D) (D) 225 46 42 (D) (D) (D) (D) 23 (D) 1,762 15,358 (D) (D) 2,253 1,038 942 (D) (D) (D) 22,061 (D) 10,021 6,438 3,031 818 (D) 461 (D) 552 (D) (D) (D) 27,348 18,037 (D) (D) 33,112 25,058 (D) (D) 34,527 (D) (D) 3,556 256 3,301 1,671 6,708 2,598 2,598 107 11,844 (D) 3,469 (D) (D) (D) 354 (D) 26,590 25,028 (D) (D) 8,980 1,129 (D) (D) (D) 297 1,562 (D) (D) (D) 1,397 (D) 23,908 8,613 15,296 5,676 307 (D) 1,424 (D) 1,999 (D) 1.521 (D) (D) (D) (D) 3 (D) -362 532 (D) (D) -15 57 -64 (D) (D) (D) -413 (D) -768 -711 -67 -27 (D) -96 (D) 11 (D) (D) (D) 1,433 1,306 (D) (D) 27 272 (D) (D) 431 (D) (D) -134 -7 -127 -10 -74 862 862 -5 -313 (D) 14 (D) (D) (D) -5,775 (D) 528 428 (D) (D) -270 53 (D) (D) (D) 20 100 (D) (D) (D) 2 (D) -737 -798 61 -436 -150 (D) -27 (D) -227 (D) -20 (D) (D) (D) (D) 8 (D) 635 3,335 (D) 53,064 438 230 163 6 (D) (D) 5,570 (D) 2,486 1,709 649 225 316 (D) (D) 128 (D) (D) (D) 2,287 2,088 (D) (D) 5,648 3,287 (D) (D) 10,150 (D) 1,005 430 3 427 417 3,543 148 148 38 2,872 719 (D) (D) (D) 500 276 224 15,536 14,906 (D) (D) 8,010 537 847 (D) (D) 90 630 3,027 (D) (D) (D) (D) 8,263 2,043 6,220 1,645 127 1,006 (D) (D) 548 513 491 (D) (D) L A 0.2 A 8.0 34.9 J 1,524.1 10.0 4.8 4.4 0.2 A F 71,9 G 27.8 16.7 8.4 2.6 4.7 F A 2.7 K K F 29.1 26.6 G G 82.9 49.0 J J 267.9 G 11.6 6.3 0.1 6.1 9,2 137.7 2.1 2.1 0,0 1.4 61.0 13.5 J A J 4.4 2.4 1.9 574.2 564.6 I H 320.6 26.6 18.0 M K 1.5 9.5 85.3 K H K A 350.9 72.8 278.1 47.6 3.6 34.7 J A 22.7 9,3 67 (D) (D) 2,613 (D) 154 (D) (D) (D) 1,873 1,766 (D) (D) (D) (D) (D) (D) (D) 106 (D) (D) 93 (D) (D) (D) (D) 21 (D) (D) 70 (D) (D) 21 (*) 21 (D) (D) (D) 8 (D) (D) 6 5 5 (D) (D) 143 (D) (D) (D) (D) (D) 112 3 50 (D) (D) (D) (D) (*) (D) 9 (D) 2,281 6 2,274 (D) (D) (D) (D) 31 (D) 4 4 1 (D) (D) 2 2 1 (*) (*) 1 (D) (D) 6 6 (D) (*) (D) (D) 2 2 Note. The following ranges are given in employment cells that are suppressed. The size ranges are: A— 1 to 499; 99,999; M— 100,000 or more. F— 500 to 999; G— 1 ,000 to 2,499; H— 2,500 to 4,999; 1—5,000 to 9,999; J— 1 0,000 to 24,999; K— 25,000 to 49,999; L— 50,000 to All Nonbank Affiliates FDIUS: Final 2002 Results 17 Table II.A 3. Selected Financial and Operating Data of Affiliates, by Country of UBO— Continues All countries Canada Europe Austria Belgium Denmarl< Finland France Germany Ireland Italy Luxembourg Netlierlands Norway Spain Sweden Switzerland United Kingdom Otiier Azerbaijan Bulgaria Croatia Cyprus Czecin Republic Gibraltar Greece Greenland Hungary Iceland Lieclitenstein Lithuania Kazal) 23 6 6 208 (D) 462 441 105 85 (D) 3 50 (D) (U) (D) 3.951 (D) 188 3,474 1 (D) 136 (D) 14 4 (D) 4 (D) (D) 2 (D) 2 (D) 103 (D) (D) (D) (D) (D) (D) 2 111,810 (D) 1,802 639 40 106,551 218 398 5 623 323 (D) (D) 264 328 41 (D) 1,355 381 184 FDIUS: Final 2002 Results Majority-Owned Nonbank Affiliates Table III.H 31. U.S. Imports Of Goods Shipped to Affiliates by the Foreign Parent Group, Country of Origin by Industry of Affiliate IMillions of dollars] All industries (1) IVIanufacturing Total (2) Of which: Cliemicals (3) Machinery (4) Computers and electronic products (5) Electrical equipment, appliances, and components (6) Transportation (7) Wholesale trade Total (8) Of which: Motor vehicles and parts (9) Professional andcommercial equipment (10) Electrical goods (11) Petroleum and petroleum products (12) Farm product raw materials (13) All countries Canada Europe Austria Belgium Denmarl< Finland France Germany Ireland Italy Luxembourg Netherlands Norway Spain Sweden Switzerland United Kingdom Other Russia Turkey Other Latin America and Other Western Hemisphere South and Central America Brazil Mexico Panama Venezuela Other Argentina Chile Colombia Costa Rica Guatemala Honduras Other Other Western Hemisphere Bahamas Bermuda Netherlands Antilles United Kingdom Islands, Caribbean Other Dominican Republic , Other Africa South Africa Other Egypt Nigeria , Other Middle East Israel Kuwait , Lebanon Saudi Arabia United Arab Emirates Other Asia and Pacific Australia China Hong Kong India Japan Korea, Republic of Malaysia New Zealand Singapore Taiwan Other Indonesia Philippines Thailand Other Unallocated ' Addenda: European Union (15) OPEC 267,291 27,016 82,127 618 1.666 983 2,267 9,127 34,230 548 3,191 5,548 1,324 515 5,038 8,120 7,775 1,177 358 53 766 16,104 15,778 3,914 7,183 2 (D) (D) 86 596 135 285 183 (*) (D) 326 (D) (D) (D) (D) 50 (D) 167 128 40 38 2 5,479 (D) (•) (•) (D) (D) 30 134,818 683 2,656 1,727 60 104,355 19,281 632 805 1,261 2,280 1,076 285 386 336 69 1,580 71,602 8,447 102,140 16,795 44,580 (D) (D) (D) (D) 6,088 18,910 (D) 1,118 2,712 (D) 323 1,044 6,812 4,190 632 59 (*) 573 2,451 2,207 404 1,707 (*) 39 58 18 22 1 (D) 3 (D) 243 (D) (D) 50 (D) 32 (D) (D) (D) 2 5,096 (D) (*) (*) (D) (D) (D) 32,578 184 367 844 13 28,889 (D) 163 (D) 958 490 376 (D) (D) 138 (D) 607 36,835 4,964 16,701 705 14,284 1 246 119 (*) 3,182 2,442 67 101 594 (D) (D) 216 5,541 1,569 1 (*) 1 240 (D) 29 95 (*) 1 (D) (D) 2 1 (D) 3 (D) (D) 2 2 5 (D) (D) (D) (0) (D) 1,095 (D) 6 6 2 957 15 21 (') (D) 1 (D) 1 (D) 2 (D) 8,579 2 5,314 145 3,221 40 68 187 46 102 1,638 264 104 3 3 272 166 312 14 14 238 238 30 205 (•) 2 (*) 2 (•) (*) (*) (*) (*) (•) (*) (*) (*) (D) 1 (*) 1 (D) 1,584 23 91 (D) (•) 1,395 (D) 3 2 49 (D) 3 2 1 (•) (D) 3,038 (D) 20,927 2,587 5,401 (D) 148 74 110 407 1,616 (D) 91 1,597 4 7 27 (D) 314 249 249 717 (D) (D) 585 (•) (*) (•) (D) (D) (D) (D) 1 1 89 89 12,108 8 (D) 694 9,983 44 112 4 467 438 (D) (D) 47 50 (D) 24 4,474 (D) 1,170 40 599 (D) (D) 110 (D) (•) (D) 36 31 1 1 6 80 (•) (*) (*) (') 442 5 1 396 2 (D) (D) 3 3 563 (■) 34,813 6,308 14,138 9 (D) (*) 1,187 11,701 (D) 106 18 259 1 672 (D) (D) (D) (D) 80 (D) (D) (D) (D) 17 17 (D) (D) (*) 13,945 11 31 2 6 13,744 114 (*) 2 (D) 1 (D) (D) (D) (D) 14,067 161,001 8,647 35,465 336 (D) 487 (D) 2,816 15,237 (D) 1,570 (D) (D) 180 3,897 1,138 3,513 544 299 53 193 13,628 13,546 3,510 5,451 2 (D) (D) 68 574 134 (D) 180 (*) (D) 82 (D) (D) (D) (D) 135 (D) (D) (D) 377 242 (*) (D) 2 (D) 101,811 497 2.276 883 47 75,168 18,965 470 745 294 1,766 699 (D) (D) 197 (D) 938 32,896 3,477 67,101 1,826 13,455 6 2 12,484 (D) (•) (D) (*) (D) 4,117 4,117 (D) (D) (•) 1 1 (D) (D) 2 2 47,685 (D) (D) 96 (•) (D) 8,524 3 (D) (D) 13,455 18,611 24 1,580 30 (D) 1 40 (D) (D) 173 (D) 2 (D) 37 263 28 28 16 16 (*) (D) 2 (D) (D) (D) (D) 16,482 3 496 43 13,345 1,416 (D) 124 1,016 (D) 1 (D) (D) 1,516 1 28,043 795 4,559 2 (D) (D) (D) 195 (D) 41 (D) 20 1 (D) 43 90 828 823 (D) (D) 23 23 21,603 (') 1,447 561 10,626 (D) (D) 69 115 (D) (D) 110 45 234 4,496 (D) 12,781 2,283 4,094 (D) 6 65 88 (D) (D) (*) 2,257 137 137 5,317 (D) (D) (D) 4 4 (D) (D) (D) (D) (D) (D) (D) 951 (D) 205 (D) 45 (D) 18 3,167 (D) 482 7 (D) (D) 3 (*) (D) (•) 130 130 33 (D) (D) 48 (D) (D) 2 198 (D) 1 1 (D) 34 34 (D) (D) Majority-Owned Nonbank Affiliates FDIUS: Final 2002 Results 185 Table III.H 32. U.S. Imports Of Goods Shipped to Affiliates by the Foreign Parent Group, Country of Origin by Country of UBO [Millions of dollars] All countries (1) Canada (2) Europe Total (3) Of which: France (4) Germany (5) Netherlands (6) Switzerland (7) United Kingdom (8) Latin America and Other Western Hemisphere (9) Africa (10) Middle East (11) Asia and Pacific Total (12) Of which: Japan (13) United States All countries Canada Europe Austria Belgium Denmarl< , Finland France Germany Ireland , Italy Luxembourg Netherlands Norway Spain Sweden Switzerland United Kingdom Other Russia Turkey Other Latin America and Other Western Hemisphere South and Central America Brazil Mexico Panama Venezuela Other Argentina Chile Colombia Costa Rica Guatemala Honduras Other Other Western Hemisphere Bahamas Bermuda Netherlands Antilles United Kingdom Islands, Caribbean. Other Dominican Republic Other Africa South Africa Other Egypt Nigeria Other Middle East Israel Kuwait Lebanon Saudi Arabia United Arab Emirates Other Asia and Pacific Australia China Hong Kong India Japan Korea, Republic of Malaysia New Zealand Singapore Taiwan Other Indonesia Philippines Thailand Other Unallocated ' Addenda: European Union (15) OPEC 267,291 27,016 82,127 618 1,666 983 2,267 9,127 34,230 548 3,191 5,548 1,324 515 5,038 8,120 7,775 1,177 358 53 766 16,104 15,778 3,914 7,183 2 (D) (D) 86 596 135 285 183 (*) (D) 326 (D) (D) (D) (D) 50 (D) 167 128 40 38 2 5,479 (D) (*) (') (D) (D) 30 134,818 683 2,656 1,727 60 104,355 19,281 632 805 1,261 2,280 1,076 285 386 336 69 1,580 71,602 8,447 16,782 14,526 1,402 (D) 18 (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) 1 1 1 405 111 (D) (D) (D) (D) (D) (D) 94,638 5,324 78,682 (D) 1,639 983 2,267 8,658 33,840 486 2,985 5,056 1,324 493 5,034 (D) 6,847 1,079 355 53 672 (D) 5,109 1,252 3,603 1 53 200 80 (D) 48 (D) (D) (D) (D) (D) (D) 48 (D) 121 85 36 (D) (D) (D) (D) (*) (D) (D) (D) 4,375 75 513 (D) 50 410 (D) (D) 8 453 574 362 (D) 199 (D) (D) 509 68,932 289 11,326 984 9,342 4 (D) 7,625 487 (D) 176 27 164 2 (D) 688 95 95 369 369 47 233 1 (D) (D) (D) (D) 4 (D) (D) (D) 608 (■) 71 7 (D) 129 27 25 1 192 59 (D) (D) 49 19 9,286 (D) 36,915 (D) 32,777 10 29 (•) (D) 261 31,947 1 181 20 1 22 1 83 102 (D) 20 (D) 50 3,256 3.256 (D) (D) (') (D) (D) (D) 42 (D) (D) (•) (D) (D) 42 (D) (D) (D) 3 (D) (•) 1 (D) 400 26 110 16 (D) 174 19 18 3 25 (D) 1 (*) 1 (■) (D) 32,607 1 10,570 1,769 6,532 (D) (D) 21 323 (D) 77 4,910 5 2 14 (D) 127 292 (D) 1 (D) 387 (D) (D) (D) (D) (D) (D) (D) (D) (D) 71 (D) (D) (D) (D) (D) (D) (D) (D) 2 140 (D) (D) (D) (D) (•) 186 (D) 231 3 (D) (D) (D) 62 5,834 224 6,691 246 5,749 (D) 3 (D) 177 445 5 144 28 (D) (D) 4,229 115 4 4 137 137 25 66 (•) (D) (D) (D) (D) (■) (•) 5 5 417 (D) 121 4 1 22 (*) (•) (D) (D) (D) (D) (D) 138 1,515 (D) 12,638 1,294 10,687 2 (D) 2 (•) 380 160 (D) 1 48 (D) 22 (D) (D) 5,515 (D) (D) (*) 2 359 (D) (D) 182 (*) (*) (*) (D) (D) D) D) 3 3 236 5 18 96 (•) 17 15 4 (D) 13 (D) (D) (D) 60 7,324 (D) 9,660 (D) 28 2 1 16 1 3 5 5 8,483 8,483 (D) 1,748 (D) 1,032 6 358 87 (D) (D) (*) 145 1 1 (D) (D) (D) 210 1 (D) 229 381 23 (D) 213 (D) (D) 2 (D) (D) (D) (D) (D) (D) 1 (D) 180 5,291 (D) (D) (D) (D) (D) (D) (D) 450 (•) (•) (D) 6 (D) (D) (D) 139,844 6,907 1,106 26 (D) 49 (D) 28 (D) 20 4 (*) (D) (D) 3 (D) (D) (D) 17 (D) 2 22 7 2 3 10 2 2 2 (D) (D) (D) (D) 2 2 129,491 609 2,031 726 11 103,942 18,004 (D) 787 704 1.469 (D) (D) 187 (D) 32 (D) 1,095 (D) 117,084 6,858 998 26 66 48 (D) 28 446 20 4 (•) 344 (D) 3 (D) 1,618 1,616 17 1,577 22 7 2 3 10 2 2 2 (D) (D) (D) (D) 2 2 107,020 (D) 1,254 229 3 103,815 34 268 2 548 167 (D) (D) 114 135 (D) (D) (D) (D) 186 FDIUS: Final 2002 Results Majority-Owned Nonbank Affiliates Table III.H 33. U.S. Imports Of Goods Shipped to Affiliates by Foreigners Other Than the Foreign Parent Group, Country of Origin by Industry of Affiliate [Millions of dollars] All industries (1) Manufacturing Total (2) Of which: Ctiemicals (3) Macfiinery (4) Computers and electronic products (5) Electrical equipment, appliances, and components (6) Transportation (7) Wtiolesale trade Total (8) Of which: li/lotor vetiicles and parts (9) Professional and commercial equipment (10) Electrical goods (11) Petroleum and petroleum products (12) Farm product raw materials (13) All countries Canada Europe Austria Belgium Denmarl< Finland France Germany Ireland Italy Luxembourg Netherlands NonA/ay Spain Sweden Switzerland United Kingdom Other Russia Turkey Ottier Latin America and Other Western Hemisphere South and Central America Brazil Mexico Panama Venezuela Other Argentina Chile Colombia Costa Rica Guatemala Honduras Other Other Western Hemisphere Bahamas Bermuda Netherlands Antilles United Kingdom Islands, Caribbean Other Dominican Republic Other Africa South Africa Other Egypt Nigeria Other Middle East Israel Kuwait Lebanon Saudi Arabia United Arab Emirates Other Asia and Pacific Australia China Hong Kong India Japan Korea, Republic of Malaysia New Zealand Singapore Taiwan Other Indonesia Philippines Thailand Other Unallocated ' Addenda: European Union (15) OPEC 67,731 13,269 11,383 43 1,294 135 198 518 1,937 167 591 515 159 279 618 866 3,162 900 372 202 326 17,460 14,150 1,072 10,779 17 (D) (D) 173 175 288 59 44 49 (D) 3,310 (D) (D) (D) (D) (D) 150 (D) 1,608 61 1,546 92 1,072 382 2,602 (D) (D) 3 (D) (D) 266 13,180 198 2,496 1,229 268 3,581 515 267 18 2.014 954 1,639 532 223 468 416 8,228 9,526 5,193 35,586 10,708 5,121 38 (D) (D) (D) 230 1,648 (D) 173 256 129 107 197 451 1,207 271 (D) (D) 100 9,351 (D) 522 7,815 308 (D) 102 18 86 (D) (D) 5 (D) (D) (D) 5 (D) 124 (D) 919 (D) (D) (D) (D) (D) 195 (D) (D) 2 (*) (D) 5,434 145 935 241 91 1,157 (D) (D) (D) 1,875 478 221 71 (D) 85 (D) 3,860 4,306 1,272 2,006 208 881 2 29 37 11 305 48 41 48 (D) (D) 54 167 86 (D) 1 (D) 464 (D) 25 219 (D) (D) 6 (D) (D) (D) (D) (D) 194 3 116 16 (*) 1 (D) 2 (D) (•) (D) (D) 693 1,916 334 637 16 17 22 1 26 339 1 21 (*) 5 43 55 74 18 18 60 60 30 27 3 (*) (*) (*) (*) (*) 378 3 30 (*) 47 (D) (*) 1 (D) 1 1 (•) 508 564 1 4,258 207 459 (*) 3 26 20 58 15 91 11 (*) 5 2 211 17 17 153 153 2 151 11 11 3,009 1 (D) 187 425 26 15 1.807 118 (D) (D) 21 22 (D) 418 433 (D) 505 18 77 (*) (*) 10 (D) (D) 1 1 1 2 12 130 130 2 128 3 3 187 1 (D) 1 7 1 (D) (D) (D) 90 75 17,002 8,477 882 9 (D) 3 6 28 641 (D) 17 2 8 52 1 86 (D) (D) (D) (D) 53 (D) 5 4 1 2 2 (D) (D) 358 11 46 (*) 4 270 3 (*) 5 (D) 7 (D) n (D) (D) 877 27,760 1,966 4,957 (D) 7 (D) 121 225 (D) 319 (D) (D) 147 68 213 1,919 (D) 156 145 (D) 7,464 4,985 533 2,896 17 (D) (D) 70 (D) (D) 1 22 (D) (0) 2,479 4 (D) (D) (D) (D) 21 (D) 643 (D) (D) (D) (D) (D) 2,356 1 (D) (D) (D) (D) 6,259 45 1,257 423 114 2,349 240 186 2 105 364 1,173 (D) (D) 338 (D) 4,114 4,253 3,843 1,384 3 1 1 667 667 5 662 516 (D) (D) 1 295 (D) (D) (D) 197 (D) 1,224 29 262 2 (D) 1 (D) 28 15 1 1 146 146 (*) (D) (D) 1 (D) (D) 372 7 85 10 73 71 17 107 3 (•) 1 1 1 415 233 (') 1,980 7 10 1 (*) (*) (*) 1 7 677 677 (*) 677 541 1 87 67 99 2 107 59 32 86 86 745 10 9,857 1,420 746 (D) (D) (D) 69 106 30 (D) (D) 274 121 102 (D) (D) 4,101 (D) (D) 917 (D) (D) 196 (D) (D) (D) 57 (D) 4 (D) (D) (D) (D) (D) (D) (D) (D) (D) 141 (D) (D) (D) (D) (D) 544 (D) 7 (D) 2 (D) 59 (D) 18 (D) 72 (D) (D) 212 600 (D) 197 17 (') 110 110 13 (D) (D) 33 (D) (D) 32 42 1 (D) (D) (') (D) 4 4 1 3 28 (•) 1 Majority-Owned Nonbank Affiliates FDIUS: Final 2002 Results 187 Table III.H 34. U.S. Imports Of Goods Shipped to Affiliates by Foreigners Other Than the Foreign Parent Group, Country of Origin by Country of UBO [Millions of dollars] All countries (1) Canada (2) Europe Total (3) Of which: France (4) Germany (5) Netherlands (6) Switzerland (7) United Kingdom (8) Latin America and Ottier Western Hemisphere (9) Africa (10) Middle East (11) Asia and Pacific Total (12) Of which: Japan (13) United States (14) All countries Canada Europe Austria , Belgium Denmark , Finland France Germany Ireland Italy Luxembourg Netherlands Norway Spain Sweden Switzerland United Kingdom Other Russia Turkey Other Latin America and Other Western Hemisphere South and Central America Brazil Mexico Panama Venezuela Other Argentina Chile Colombia Costa Rica Guatemala Honduras Other Other Western Hemisphere Bahamas Bermuda Netherlands Antilles United Kingdom Islands, Caribbean Other Dominican Republic Other Africa South Africa Other Egypt Nigeria Other Middle East Israel Kuwait Lebanon Saudi Arabia United Arab Emirates Other Asia and Pacific Australia China Hong Kong India Japan Korea, Republic of Malaysia New Zealand Singapore Taiwan Other Indonesia Philippines Thailand Other Unallocated ' Addenda: European Union (15) OPEC 67,731 13,269 11,383 43 1,294 135 198 518 1,937 167 591 515 159 279 618 866 3,162 900 372 202 326 17,460 14,150 1,072 10,779 17 (D) (D) 173 175 288 59 44 49 (D) 3,310 (D) (D) (D) (D) (D) 150 (D) 1,608 61 1,546 92 1,072 382 2,602 (D) (D) 3 (D) (D) 266 13,180 198 2,496 1,229 268 3,581 515 267 18 2,014 954 1,639 532 223 468 416 8,228 9,526 5,193 1,853 761 205 1 (D) 19 2 (•) (D) (D) (D) (D) 10 (D) (D) (D) (D) (D) (D) 4 (D) (D) 4 (D) (D) (D) (D) 4 4 202 1 (D) (D) 1 26 3 2 24 10 10 (•) (D) (D) 10 43,200 10,348 8,837 40 1,251 134 193 408 1,671 107 398 370 107 (D) 582 (D) 2,459 445 97 85 263 (D) 9.678 556 7,951 (D) 597 (D) 55 (D) 151 (D) (D) 8 (D) (D) (D) (D) (D) (D) (D) 65 (D) (D) 53 (D) (D) (D) (D) 2,209 (D) 5 2 (D) (0) (D) (D) (D) 1,020 (D) 149 609 (D) (D) 15 (D) 641 645 (D) (D) (D) (D) 4,542 7,891 3,528 3,281 356 646 (•) 2 22 88 (D) 49 4 1 5 (D) (D) 70 34 (D) 2 (D) 758 (D) 4 172 (D) (D) (•) (D) C (D) (D) (D) (D) 6 (D) (D) (D) 6 5 1 537 2 108 178 (D) 57 9 10 18 91 (D) (D) 3 5 45 971 417 (D) 20,471 (D) 2,386 17 53 (D) (D) 176 1,007 (D) 130 25 36 (D) 28 141 (D) 14 (D) (D) 6,777 6,772 (D) (D) 10 (D) (D) (D) 15 (D) (D) 4 40 5 5 (D) (D) 79 (D) (D) 5 (D) 10 (D) 2 (D) 1,805 8 669 94 (D) 121 37 47 9 20 (D) (D) 208 27 98 (D) (D) 2,111 219 4,247 377 1,365 (*) (D) 59 (D) 63 52 105 299 (D) (D) 60 (•) 495 77 (D) (D) 1,112 (D) (D) (D) (D) 495 (D) (D) (D) (D) 1 25 (D) (D) (D) (D) (D) 538 538 (D) (D) 86 (D) (*) (D) (D) (D) (*) 48 (D) 1 (D) 22 (D) 1 61 (D) 43 (D) 2 1 (D) 229 1,218 1,109 1,747 99 615 14 (*) 72 259 (*) 16 18 5 1 (D) 140 74 (D) (D) 196 (D) 9 83 (D) 2 (D) (D) (D) (D) (D) 5 (D) 6 6 481 (D) 31 (D) 6 84 35 (D) (D) (D) (D) (D) (D) 466 (D) 8,706 396 1,895 7 5 3 5 44 60 40 9 9 (D) (D) 1,581 (D) (D) (D) 10 3,287 (D) (D) (D) 3 (D) (D) 2 (D) (D) (D) (D) 46 (*) 46 5 (D) (D) (D) (D) 5 2 (D) (D) 162 5 59 22 (■) 25 7 3 5 2 8 25 (D) (D) (D) 1,777 (D) 5,671 (D) 962 (•) 25 (•) 2 (D) 157 (D) 64 33 (D) 4 (D) (D) 175 149 (D) (D) (D) 1,442 1,358 (D) 716 (D) (D) 53 29 41 1 (D) 85 85 85 (D) (D) 157 1 156 (D) (D) (D) (D) (D) 1 2 1 (D) (D) 126 353 71 (D) 139 (D) (D) (*) (D) 87 273 (D) (D) (D) 113 450 590 (D) 187 3 (D) (D) (D) (•) 3 (D) (D) (D) (D) (D) (D) 86 (D) (D) (D) (D) (D) (D) (D) (D) (D) (*) (D) 11 4 1,829 (0) (D) (D) 5 (D) (D) (D) 2 (D) (D) (D) (D) (D) (D) (D) 177 (D) (D) (D) (D) (D) (D) (D) 2 (D) (D) (D) (D) (D) 6 (D) 63 (D) (D) (D) (D) 72 (D) (D) 12,540 922 723 2 18 4 38 80 (D) 103 (D) (D) (D) 2 208 (D) (D) (D) 50 (D) (D) (D) 170 (D) (D) (D) (D) (D) (D) (D) (D) 1 (D) (D) 2 (D) (D) (D) 3 (D) (D) (D) (D) (D) 5,568 32 682 632 (D) 2,805 305 132 3 93 201 (D) (D) 154 (D) (D) (D) 437 (D) 10,839 853 632 2 18 4 35 55 (D) 103 25 (D) 3 2 (D) 98 (D) (*) (D) (D) 2,333 (D) 170 1,897 1 (D) 115 (D) 7 4 (D) 1 (D) (D) 2 (D) (D) (D) 3 (D) (D) (D) (D) (D) 4,791 (D) 548 410 36 2,736 184 130 3 75 157 (D) (D) 150 193 (D) 2,118 (D) (D) 2,451 (D) 189 (D) 3 (D) 1 93 (D) (D) (D) (D) (D) (D) 3 1 2 (*) (D) (D) (D) (D) 188 188 FDIUS: Final 2002 Results Majority-Owned Nonbank Affiliates Table III.H 35. U.S. Imports of Goods Shipped to Affiliates, Industry of Affiliate by Transactor and Intended Use [Millions of dollars] Sliipped by all foreigners Total (1) Capital equipment ' (2) Goods for resale witliout further manufacture (3) Goods for furttier manufacture (4) Shipped by the foreign parent group Total (5) Capital equipment ' (6) Goods for resale without further manufacture (7) Goods for further manufacture Shipped by other foreigners Total (9) Capital equipment (10) Goods for resale without further manufacture (11) Goods for further manufacture Allindustries Manufacturing Food Beverages and tobacco products Textiles, apparel, and leather products Paper Printing and related support activities Petroleum and coal products Chemicals Basic chemicals Resins and synthetic rubber, fibers, and filaments.. Pharmaceuticals and medicines Soap, cleaning compounds, and toilet preparations Other Plastics and rubber products Nonmetalllc mineral products Primary and fabricated metals Primary metals Fabricated metal products Machinery Agriculture, construction, and mining machinery Industrial machinery Other Computers and electronic products Computers and peripheral equipment Communications equipment Semiconductors and other electronic components Navigational, measuring, and other instruments Other Electrical equipment, appliances, and components .... Transportation equipment Motor vehicles, bodies and trailers, and parts Other Other Wholesale trade Motor vehicles and motor vehicle parts and supplies.. Electrical goods Petroleum and petroleum products Other Retail trade Food and beverage stores Other Information Publishing industries Motion picture and sound recording industries Telecommunications Other Finance (except depository institutions) and insurance Finance, except depository institutions Insurance carriers and related activities Real estate and rental and leasing Real estate Rental and leasing (except real estate) Professional, scientific, and technical services Architectural, engineering, and related services Computer systems design and related services Management, scientific, and technical consulting Other Other industries Agriculture, forestry, fishing, and hunting Mining Utilities Construction Transportation and warehousing Management of nonbank companies and enterprises Administration, support, and waste management Health care and social assistance Accommodation and food services Miscellaneous services 335,021 137,726 2,303 2,012 404 2,719 622 (D) 18,707 2,226 3,322 11,205 474 1,480 4,448 1,458 7,705 5,649 2,056 7,230 1,490 1,130 4,611 25,185 (D) 4,016 4,991 3,797 (D) 1,675 51,815 49,203 2,612 (D) 188,761 68,485 30,023 22,638 67,615 3,979 460 3,519 865 163 (D) (D) (D) 482 (D) (D) 316 96 76 143 2,892 207 50 2,281 186 28 (*) (D) 6 (D) 1,183 586 10 (D) 1 13 (D) 70 59 10 41 4 45 34 11 138 (*) (*) 138 (D) (D) (*) 168 168 42 57 13 2 43 (D) (*) (D) (D) (D) (D) 12 1 5 6 462 (D) (D) 432 (*) 10 3 238,756 61,621 404 (D) 72 87 24 3,704 257 (D) 2,242 (D) 444 2,635 386 2,733 2,094 639 1,271 (D) (D) 703 (D) (D) 2,612 319 (D) (D) 500 (D) (D) 110 (D) 169,981 (D) 28,928 (D) 64,974 3,979 460 3,519 (D) (D) (D) (0) (D) (D) (D) 187 (D) (D) (D) 2,065 (D) 9 1,849 18 (*) (D) 3 (D) 95,083 75,519 1,888 (D) 330 2,619 598 (D) 14,934 1,909 (D) 8,952 (D) 1,036 1,772 1,068 4,927 3,521 1,406 5,821 (D) (D) 3,770 (D) (D) 1,404 4,673 (D) 2,154 1,175 (D) (D) 2,502 2,931 18,723 (D) 1,093 (D) 2,599 (D) (D) (D) (D) (D) 116 (D) (D) (D) 365 (D) (D) 186 (D) (D) 267,291 102,140 1,620 1,638 309 2,260 557 (D) 16,701 1,596 3,125 10,523 373 1,084 3,504 835 5,828 4,281 1,547 5,314 1,269 833 3,212 20,927 (D) 3,605 4,527 3,155 (D) 1,170 34,813 32,329 2,484 (D) 161,001 67,101 28,043 12,781 53,076 1,595 11 1,583 119 (D) (D) (D) 286 n 286 299 85 76 138 1,852 103 27 1,437 136 14 A: 3 (D) 513 400 3 1 5 (D) 24 16 8 38 4 26 21 5 123 (*) (*) 123 (D) n (D) (•) 149 149 8 37 13 2 22 (D) (D) (D) (D) (D) (D) 1 5 (D) 4 4 (*) 195,567 44,246 360 (D) 69 57 12 3,417 203 (D) 2,032 (D) 428 2,228 208 2,571 1,996 574 891 (D) (D) 478 (d; (d! 2,351 274 (D) (D) 296 (D) (D) 80 (D) 147,696 (D) 27,022 (D) 50,967 1,595 11 1,583 (D) (D) (D) (D) (*) (D) (D) (D) (D) (D) 1,595 103 (D) 1,433 14 (D) 3 (D) 71,211 57,494 1,257 (D) 238 2,198 544 (D) 13,261 1,377 (D) 8,484 (D) 655 1,237 623 3,231 2,263 968 4,300 (D) (D) 2,611 (D) (D) 1,254 4,253 (D) 1,867 873 (D) (D) 2,403 1,332 13,268 (D) 1,019 (D) 2,087 (D) (D) (D) (D) (d! (D) (D) 253 (D) 136 (D) (D) 67,731 35,586 682 374 95 458 66 (D) 2,006 630 197 681 101 397 944 623 1.877 1,368 509 1,916 221 297 1,399 4,258 (D) 412 464 643 (D) 505 17,002 16,874 128 (D) 27,760 1,384 1,980 9,857 14,539 2,384 449 1,936 746 (D) (D) (D) 196 D) D) 17 12 (*) 5 1,040 103 23 843 50 14 (*) 3 3 670 186 7 (D) 8 46 44 2 3 19 12 7 15 (*) 15 (D) (•) (') (D) (•) 18 18 34 20 20 (D) (*) (D) (D) (D) 458 (D) (D) 428 10 3 43,188 17,375 44 (D) 3 30 12 287 54 (D) 210 (D) 16 406 178 163 98 65 380 (D) (D) 225 (D) (D) 262 45 (D) (D) 204 (D) (D) 30 (D) 22,284 (D) 1.906 (D) 14,007 2,384 449 1,936 (D) (D) (D) (D) (D) (D) (D) (D) (D) (*) (D) 470 (D) (D) 416 4 (*) (*) Majority-Owned Nonbank Affiliates FDIUS: Final 2002 Results 189 Table III.H 36. U.S. Imports of Goods Shipped to Affiliates, Country of UBO by Transactor and Intended Use [Millions of dollars] Shipped by all foreigners Total (1) Capital equipment (2) Goods for resale without further manufacture (3) Goods for further manufacture (4) Shipped by the foreign parent group Total (5) Capital equipment (6) Goods for resale without further manufacture (7) Goods for further manufacture (8) Shipped by other foreigners Total (9) Capital equipment ' (10) Goods for resale without further manufacture (11) Goods for further manufacture (12) All countries Canada Europe Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Non«ay Spain Sweden Switzerland United Kingdom Other Latin America and Other Western Hemisphere South and Central America Brazil Mexico Panama Venezuela Other Other Western Hemisphere Bahamas Bermuda Netherlands Antilles United Kingdom Islands, Caribbean Other Africa South Africa Other Middle East Israel Kuwait Lebanon Saudi Arabia United Arab Emirates Other Asia and Pacific Australia China Hong Kong India Japan Korea, Republic of l\/lalaysia New Zealand Singapore Taiwan Other United States Addenda: European Union (15) OPEC 335,021 18,634 137,838 (D) 1,137 1,427 4,979 14,608 57,386 212 3,461 (D) 14,817 868 651 5,373 8,438 21,344 818 15,331 11,756 2,940 2,377 (D) (D) 1,435 3,575 (D) 2,593 18 927 (D) 399 (D) (D) 7,120 (D) (•) 2 (D) 41 88 152,384 512 248 708 10 127,923 19,966 13 836 429 1,644 94 3,315 127,723 (D) 1,183 (D) 811 (D) 1 1 465 142 2 (D) 23 1 33 67 67 6 6 26 26 (*) (*) (D) 4 2 (D) 271 (•) 246 25 1 744 (D) 238,756 10,006 90,277 (D) 369 624 3,514 6,867 46,925 (D) 2,393 (D) 10,152 559 376 3,909 4,126 7,623 610 (D) 8,035 (D) 2,038 9 (D) (D) (D) (D) (D) 12 915 (D) 162 (D) (D) (D) (D) (') (D) 40 (D) 127,111 308 (D) (D) 4 104,117 19,468 3 (0) (D) 1,395 85 390 84,982 (D) 95,083 (D) 46,750 102 (D) 803 1,464 7,275 10,320 (D) 1,067 80 4,642 308 274 1,432 4,245 13,653 208 (D) 3,715 (D) 339 (D) (D) (D) (D) 1 (D) 6 13 4 237 (D) (D) (D) 358 (•) (D) (*) (D) 25,002 205 (D) (D) 5 23,559 474 10 (D) (D) 249 9 2,925 41,996 (D) 267,291 16,782 94,638 (D) 941 1,265 4,292 11,326 36,915 141 2,904 (D) 10,570 685 270 4,514 6,691 12,638 602 9,660 8,619 2,543 1,707 (D) (D) 1,035 1,041 (D) 692 14 309 (D) 213 (D) (D) 5,291 (D) (•) (•) (D) 6 (D) 139,844 408 195 392 7 117,084 19,444 10 785 140 1,305 75 863 86,666 (D) 513 21 255 (D) 29 127 (D) 23 1 8 13 50 (*) 4 4 232 220 12 1 241 195,567 9,095 61,017 (D) 312 569 3,374 5,302 29,538 (D) 1,970 (D) 7,371 396 135 3,356 3,117 4,286 454 (D) 6,149 (D) 1,576 (D) (D) (D) (D) (D) (D) 9 303 (D) 28 28 (D) (D) (•) (D) 6 (D) 117,585 282 (D) (D) 4 95,763 18,990 3 (d! 1,118 68 367 57,050 (D) 71,211 7,665 33,367 77 (D) 695 917 5,996 7,250 (D) 933 (D) 3,176 289 134 1,151 3,561 8,302 148 (D) 2,470 (D) 131 (D) (D) (D) (D) 1 (D) 4 6 (*) 184 (D) (D) (D) 345 (•) (*) (D) (•) (D) 22,027 126 (D) (D) 4 21,102 441 7 (D) (D) 186 7 496 29,375 (D) 67,731 1,853 43,200 (D) 196 163 688 3,281 20,471 71 558 (D) 4,247 183 381 859 1,747 8,706 216 5,671 3,137 397 670 (D) (D) 400 2,534 (D) 1,901 4 619 (D) 187 (D) (D) 1,829 (D) (*) 2 (D) 34 (D) 12,540 105 54 317 2 10,839 522 3 51 289 340 19 2,451 41,056 (D) 670 (D) 557 4 1 1 437 15 2 25 54 17 31 6 6 26 26 (•) (*) (D) 2 (D) 39 (*) 26 12 (•) 503 (D) 1,1 43,188 911 29,260 (D) 57 54 140 1,565 17,386 (D) 422 (D) 2,780 163 241 553 1,009 3,337 156 (D) ,886 (D) 462 (D) (D) 400 (D) (D) (D) 2 612 (D) 134 (D) (D) (D) (D) (•) (D) 34 (D) 9,526 26 (D) (D) 1 8,354 477 1 (D) (D) 277 17 22 27,932 (D) 23,872 (D) 13,383 25 135 108 547 1,279 3,070 (D) 134 (D) 1,466 19 140 280 684 5,352 60 (D) 1,245 (D) 208 (*) (D) (■) (D) (*) (D) 2 7 4 52 (D) (D) (D) 13 (■) (D) (*) (D) 2,975 79 (D) (D) 2 2,458 33 2 (D) (D) 62 2 2,429 12,621 (D) 190 FDIUS: Final 2002 Results Majority-Owned Nonbank Affiliates Table III.H 37. U.S. Imports of Goods Shipped to Affiliates— Goods for Further Manufacture, Industry of Affiliate by Country of UBO [Millions of dollars] All countries (1) Canada (2) Europe Total (3) Of which: France (4) Germany (5) Netherlands (6) Switzerland (7) United Kingdom (8) Latin America and Other Western Hemisphere (9) Africa (10) Middle East (11) Asia and Pacific Total (12) Of which: Japan (13) All industries Manufacturing Food Beverages and tobacco products Textiles, apparel, and leather products Paper Printing and related support activities Petroleum and coal products Chemicals Basic chemicals Resins and synthetic rubber, fibers, and filaments Pharmaceuticals and medicines Soap, cleaning compounds, and toilet preparations Other Plastics and rubber products Nonmetallic mineral products Primary and fabricated metals Primary metals Fabricated metal products Machinery Agriculture, construction, and mining machinery Industrial machinery Other Computers and electronic products Computers and peripheral equipment Communications equipment Semiconductors and other electronic components Navigational, measuring, and other instruments Other Electrical equipment, appliances, and components Transportation equipment Motor vehicles, bodies and trailers, and parts Other Other Wholesale trade Motor vehicles and motor vehicle parts and supplies Electrical goods Petroleum and petroleum products Other Retail trade Food and beverage stores Other Information Publishing industries Ivlotion picture and sound recording industries Telecommunications Other Finance (except depository institutions) and insurance Finance, except depository institutions Insurance carriers and related activities Real estate and rental and leasing Real estate Rental and leasing (except real estate) Professional, scientific, and technical services Architectural, engineering, and related services Computer systems design and related services Management, scientific, and technical consulting Other Other industries Agriculture, forestry, fishing, and hunting Mining Utilities Construction Transportation and warehousing Management of nonbank companies and enterprises Administration, support, and waste management Health care and social assistance Accommodation and food services Miscellaneous services 95,083 75,519 1,888 (D) 330 2,619 598 (D) 14,934 1,909 (D) 8,952 (D) 1,036 1,772 1,068 4,927 3,521 1,406 5,821 (D) (D) 3,770 (D) (D) 1,404 4,673 (D) 2,154 1,175 (D) (D) 2,502 2,931 18,723 (D) 1,093 (D) 2,599 (D) (D) (D) (D) (D) 116 (D) (D) (D) 365 (D) (D) 186 (D) (D) (D) 8,285 191 8 6 (D) (D) 36 (D) 1 3 (D) (D) 5 1,562 1,471 91 (D) 6 (D) 29 (13) 2 (D) (D) 1 (D) 41 1,470 (D) (D) (D) 121 121 (D) (D) (D) (D) (D) (D) 46,750 38,337 1,248 617 259 635 (D) (D) 13,524 1,775 2,351 8,410 317 671 1,148 684 2,046 1,118 928 4,635 593 865 3,177 4,030 101 422 2,210 1,286 11 676 5,982 (D) (D) 848 7,973 (D) (D) (D) 1,204 (D) (D) 1 (D) (D) (D) (D) 3 140 (D) 39 (D) 2 7,275 6,952 112 80 40 3 3,664 291 (D) (D) (D) 235 395 (D) 270 259 11 44 44 448 7 (D) (D) 33 (D) 1,261 (0) (D) 241 321 (D) (D) 10,320 10,113 16 57 51 2 (*) 1,098 (D) {0) 347 311 127 407 36 372 2,804 (D) (D) 2,312 1,264 79 6 (D) (D) 1 129 3.676 3,676 168 (D) (D) (D) (*) (*) (D) (D) 4,642 (D) 335 (D) 2 (D) 905 3 241 (D) 1 (D) 5 (D) 11 1 10 39 (D) (13) 1,567 (D) (D) 3 19 65 (D) (D) (D) 4,245 4,216 318 4 54 (D) 11 3,111 689 (13) (D) 16 3 177 101 4 97 227 (D) (D) 97 (D) (D) 42 43 (D) (D) 1 43 (D) (D) (D) (D) 13,653 6,632 29 (D) 27 9 36 (D) 4,289 {D) 6 (D) (D) (D) 112 121 235 (D) (D) 280 14 15 250 406 7 4 71 317 6 28 418 298 120 (D) (D) (D) (D) (D) (D) 1 (*) (D) (D) (D) (D) (D) 4 1 1 1 (D) (D) 1 (*) 2 (D) 550 (D) (D) (D) (D) 1 1 (D) 1 (D) (D) (D) (D) (D) (D) (D) (D) 237 237 {D] 1 (D) (D) (D) (D) (D) (D) (D) (•) 1 (D) (D) (D) (D) 8 (*) 2 2 1 (*) (*) 32 5 4 22 2 2 2 (D) (D) 25,002 17,084 427 11 63 65 88 (D) 693 (D) 192 (D) 44 (D) (D) (D) (D) 401 (D) 936 238 142 556 3,929 (D) (D) 660 (13) 2.053 (D) 8.624 8,579 44 (D) (D) (D) (D) (D) (D) (D) (D) 94 (D) (D) 23,559 16,129 327 10 57 65 88 1 94 192 226 44 132 410 289 608 310 299 923 237 141 545 3.496 (D) (D) 288 (D) 2.044 346 8.614 8.573 41 207 7,347 (13) 575 (D) (D) (D) (D) (D) (D) Majority-Owned Nonbank Affiliates FDIUS: Final 2002 Results 191 Table lll.l 1. Interest, Dividends or Remitted Profits, and Taxes Other Than Income and Payroll Taxes, of Affiliates, by Industry of Affiliate [Millions of dollars] Interest Receipts ' (1) Payments ' (2) Dividends or remitted profits (3) Taxes other ttian income and payroll taxes (4) All industries Manufacturing Food Beverages and tobacco products Textiles, apparel, and leatfier products Paper , Printing and related support activities Petroleum and coal products Ctiemicals , Basic ctiemicals Resins and synttietic rubber, fibers, and filaments , Pharmaceuticals and medicines Soap, cleaning compounds, and toilet preparations Other Plastics and rubber products Nonmetallic mineral products Primary and fabricated metals , Pnmary metals , Fabricated metal products IVIachinery Agriculture, construction, and mining machinery Industrial machinery Ottier Computers and electronic products Computers and peripheral equipment Communications equipment Semiconductors and other electronic components Navigational, measunng, and other instruments Other Electrical equipment, appliances, and components Transportation equipment IVIotor vehicles, bodies and trailers, and parts Other Other Wholesale trade Motor vehicles and motor vehicle parts and supplies Electrical goods Petroleum and petroleum products Other Retail trade Food and beverage stores Other Information Publishing industries , Motion picture and sound recording industries Telecommunicafions Other Finance (except depository institutions) and insurance Finance, except depository institutions Insurance carriers and related activities Real estate and rental and leasing Real estate Rental and leasing (except real estate) Professional, scientific, and technical services Architectural, engineering, and related services Computer systems design and related services Management, scientific, and technical consulting Other Other industries Agriculture, forestry, fishing, and hunting , Mining unities Construction Transportation and v^arehousing Management of nonbank companies and enterprises Administration, support, and waste management Health care and social assistance Accommodation and food services Miscellaneous services 95,294 92,811 15,088 26,081 317 2,389 (D) 827 10 117 66 604 12 327 (D) (D) 1,028 4,743 84 812 93 695 741 2,363 30 283 79 590 78 461 267 1,725 202 1,185 112 573 90 612 925 2,137 (D) 1,048 36 120 (D) 968 373 2,063 (D) 72 It 585 57 344 97 868 (D) 193 (D) 856 (D) 3,892 (D) 3,111 476 781 (D) (D) 8,280 7,642 5,740 2,395 276 544 723 1,160 1,542 3,544 430 2,204 65 1,742 365 462 1,123 5,487 355 2,752 291 418 200 1,171 277 1,146 66,908 39,756 40,426 35,839 26,481 3,917 417 2,897 334 2,606 83 291 1,095 1,308 27 209 53 103 244 99 771 896 1,955 7,436 16 87 448 1,391 155 1,268 92 331 235 884 250 1,492 571 441 10 347 160 934 17 261 18,980 8,050 45,286 16,187 (D) 554 123 2,017 29 36 15 119 116 (D) (D) 2,248 1,221 394 248 20 242 (D) 561 (D) 44 51 127 106 481 183 524 567 341 508 186 59 155 355 468 (D) 135 21 34 (D) 299 981 1,086 (D) 60 n 263 (D) 118 15 498 (D) 147 143 (D) 1,603 836 (D) 789 (U) 46 286 (D) 3,003 17,425 404 985 238 510 74 (D) 2,288 (D) 403 4,631 (D) 2,933 (D) 1,698 324 772 57 277 (D) 101 12 272 (D) 122 3,962 2,059 1,807 199 2,155 1,860 1,229 1,069 1,175 913 54 156 299 218 3 56 4 43 (D) 24 (U) 95 1,709 2,926 36 22 135 777 (D) 522 69 139 313 261 313 18 (D) 246 4 78 45 768 17 97 192 FDIUS: Final 2002 Results Majority-Owned Nonbank Affiliates Table 111. 1 2. Interest, Dividends or Remitted Profits, and Taxes Other Than Income and Payroll Taxes, of Affiliates, by Country of UBO [Millions of dollars] Interest Receipts ' (1) Payments ' (2) Dividends or remitted profits (3) Taxes otfier than income and payroll taxes (4) All countries Canada Europe Austria Belgium Denmark... Finland France Germany Ireland Italy Luxembourg Netherlands Nomiay Spain Sweden Switzerland United Kingdom Other Latin America and Other Western Hemisphere. South and Central America Brazil Mexico Panama Venezuela Other Other Western Hemisphere Bahamas Bermuda Netherlands Antilles United Kingdom Islands, Caribbean Other Africa South Africa Other Middle East Israel Kuwait Lebanon Saudi Arabia United Arab Emirates Other Asia and Pacific Australia China Hong Kong India Japan Korea, Republic of Malaysia New Zealand Singapore Taiwan Other United States Addenda: European Union (15) OPEC 95,294 5,928 74,009 7 543 203 47 8,051 14,611 84 828 16 13,189 41 82 139 21,994 14,162 13 5,245 249 80 87 (D) (D) 4 4,995 (D) 4,333 14 584 (D) 57 55 2 89 19 11 13 23 14 9 9,754 794 3 30 4 8,611 184 7 4 38 68 11 213 51,965 (D) 92,811 6,002 65,089 (D) 890 281 301 7,539 8,966 442 987 150 6,413 159 112 883 20,733 17,093 (D) 7,608 850 133 522 26 (D) (D) 6,757 (D) 5,409 153 996 (D) 108 101 7 570 95 35 31 168 86 156 12,926 1,856 20 168 11 9,878 316 22 15 455 156 29 509 44,144 (D) 18,980 45,286 1,817 1,712 12,283 26,362 10 41 398 625 27 94 24 139 1,901 1,964 2,427 3,025 (D) 52 409 360 (D) 20 1,633 5,584 15 (D) 3 121 76 406 2,954 1,209 2,263 12,173 21 (D) 786 (D) 175 (D) 36 52 101 141 11 4 26 (D) 2 20 611 869 1 4 565 475 3 29 (D 293 (U 67 (D) 35 2 31 (D) 4 (D) (D) 8/ 51 6 (D) 1 24 (D) (D) 3 28 8 49 3,034 5,831 415 357 6 10 18 241 (*) 5 2,573 4,598 4 397 5 26 3 37 3 61 5 82 3 17 (D) 887 9,305 24,613 (D) (D) Majority-Owned Nonbank Affiliates FDIUS: Final 2002 Results 193 Table lll.l 3. Taxes Other Than Income and Payroll Taxes Paid by Affiliates, Industry of Affiliate by Country of UBO [Millions of dollars] All countries (1) Canada (2) Europe Total (3) Of which: France (4) Germany (5) Netherlands (6) Switzerland (7) United Klngdonn (8) Latin America and Ottier Western Hemisphere (9) Africa (10) Middle East (11) Asia and Pacific Total (12) Of which: Japan (13) United States (14) All indusfries Il/lanufacturing Food Beverages and tobacco products Textiles, apparel, and leather products Paper Printing and related support activities Petroleum and coal products Chemicals Basic chemicals Resins and synthetic rubber, fibers, and filaments Pharmaceuticals and medicines Soap, cleaning compounds, and toilet preparations Other Plastics and rubber products Nonmetallic mineral products Pnmary and fabricated metals Primary metals Fabricated metal products Machinery Agriculture, construction, and mining machinery Industrial machinery Other Computers and electronic products Computers and peripheral equipment.... Communications equipment Semiconductors and other electronic components Navigational, measuring, and other instruments Other Electrical equipment, appliances, and components Transportation equipment Motor vehicles, bodies and trailers, and parts Other Other Wholesale trade Motor vehicles and motor vehicle parts and supplies Electrical goods Petroleum and petroleum products Other Retail trade Food and beverage stores Other Information Publishing industries Motion picture and sound recording industries Telecommunications Other Finance (except depository institutions) and insurance Finance, except depository institutions Insurance carriers and related activities Real estate and rental and leasing Real estate Rental and leasing (except real estate) Professional, scientific, and teclinical services Architectural, engineering, and related services Computer systems design and related services Management, scientific, and technical consulting Other other industries Agriculture, forestry fishing, and hunting ... Mining Utilities Construction Transportation and warehousing Management of nonbank companies and enterprises Administration, support, and waste management Health care and social assistance Accommodation and food services Miscellaneous services 45,286 16,187 554 2,017 36 119 116 (D) 1,221 248 242 561 44 127 481 524 341 186 155 468 135 34 299 1,086 60 263 118 498 147 (D) 836 789 46 (D) 17,425 985 510 (D) (D) 4,631 2,933 1,698 772 277 101 272 122 2,059 199 1,860 1,069 913 156 218 56 43 24 95 2,926 22 777 522 139 261 18 246 78 768 97 1,712 339 23 (D) 1 29 (D) 2 35 (D) (D) 1 (D) (D) 8 6 30 24 6 5 1 3 2 (D) 1 (D) (*) (D) 3 25 22 4 (D) 264 3 6 193 62 89 2 87 167 (D) (D) (D) 6 232 13 219 154 148 5 15 1 7 453 (*) 88 167 36 100 (D) 2 (D) 3 39 26,362 9,317 473 1,732 27 53 60 (D) 1,089 224 213 547 29 76 (D) (D) 180 67 113 377 (D) 28 (D) 635 (D) 48 59 488 (D) 73 470 430 40 103 10,259 439 (D) (D) (D) 2,275 (D) (D) 508 172 (D) 164 (D) 1,572 151 1,421 492 346 146 162 52 24 19 67 1,778 12 499 355 82 105 (D) 222 (D) 422 (D) 1,964 836 26 (D) 4 (D) 467 89 (D) (D) (D) 6 39 96 11 9 2 65 (*) (*) 65 36 (*) (D) (D) (*) 7 13 649 n 75 573 62 62 93 5 (D) (D) 1 72 15 58 8 6 2 33 2 20 212 (D) (*) 37 (D) 4 10 133 (*) 3,025 924 2 6 5 (•) 1 237 59 (D) (D) (D) 10 58 26 46 4 42 166 (D) 13 (D) 50 2 1 (D) (D) 7 296 296 23 608 411 10 2 185 580 417 163 141 (D) 1 (D) (D) 4 (D) 207 206 1 (D) 4 (D) (D) 11 17 4 (D) 7 1 5,584 (D) (D) 4 (•) (D) 58 1 16 35 (D) 1 14 (D) 1 4 2 2 (D) (D) (D) 221 114 342 (D) (D) 109 (D) 2 (D) 2 556 (D) (D) 57 (D) (D) 18 2 (D) 1 (D) 29 1 1 (•) 2 6 (D) (*) (D) 1,209 581 (D) 1 2 1 (D) 134 (D) 9 (D) 5 3 (D) 6 (•) 5 23 3 (D) 1 1 (*) 11 74 (D) 9 (D) 20 20 2 4 (D) 2 (*) 1 (D) ?i 12,173 2,250 15 1,600 7 2 22 117 (D) 2 53 7 (D) 25 78 60 38 22 42 1 1 40 155 1 15 (D) (D) 3 100 71 29 22 (D) (D) 11 (D) 396 242 (D) (D) 150 50 3 20 77 294 14 280 82 42 40 80 29 14 31 (D) 3 (D) 275 16 57 (D) 20 127 (D) 465 14 32 (•) (*) 1 1 (*) 1 (■) (■) 1 48 52 44 7 (D) (D) (•) (•) (D) (D) (D) (*) (•) 1 (D) (•) (*) (D) (D) 2 4 (D) 126 32 (D) (D) 51 (•) (•) (D) (D) 197 1 196 49 48 (*) 4 1 1 3 (•) 137 4 100 (•) 1 7 35 22 1 (*) (D) (D) (D) 4 4 (') (•) (*) (•) (D) (D) (*) 1 (D) (D) 4 1 1 1 (•) '1 (*) (*) 1 1 4 2 1 (•) 1 1 1 1 30 (D) 36 (D) 5,831 1,427 43 12 7 8 3 1 78 19 (D) 12 2 (D) (D) (D) 75 47 28 (D) 19 3 (D) 272 25 (D) 52 (D) 21 335 334 2 (D) 1,526 541 (D) 9 (D) D) D) 228 41 (D) 2 2 (D) 54 34 19 299 296 3 30 1 1 19 (D) 3 (D) (*) 18 47 1 11 3 297 21 4,598 1,187 35 11 6 3 3 (•) 46 10 13 9 2 13 (D) 40 69 42 27 39 16 3 20 244 (D) (D) 26 (D) 20 335 333 2 (D) 1,046 324 212 9 501 (D) (D) 140 12 4 (*) 1 7 52 33 19 186 183 3 26 1 19 (0) 3 2 29 126 (D) 887 (D) 1 (D) (*) (D) (D) 2 (D) (*) (*) 3 2 (D) (D) (*) (*) 4 4 (*) (D) 2 (D) (D) (D) (D) 1 (*) (•) 1 (0) (•) (D) 2 1 (*) (*) 3 194 FDIUS: Final 2002 Results Majority-Owned Nonbank Affiliates Table lll.l 4. Research and Development Funded by and Performed by Affiliates, by Industry of Affiliate [Millions of dollars] Funded by affiliates Total (1) Performed by affiliates ttiemselves (=col. 5) (2) By otiiers (3) Performed by affiliates Total For affiliates ttiemselves (=col. 2) (4) (5) For Federal Government All industries Manufacturing Food Beverages and tobacco products Textiles, apparel, and leatfier products Paper Printing and related support activities Petroleum and coal procjucts Chemicals Basic chemicals Resins and synthetic rubber, fibers, and filaments Pharmaceuticals and medicines Soap, cleaning compounds, and toilet preparations Other Plastics and rubber products Nonmetallic mineral products Primary and fabricated metals Primary metals Fabricated metal products Machinery Agriculture, construction, and mining machinery Industrial machinery Other Computers and electronic products Computers and peripheral equipment Communications equipment Semiconductors and other electronic components Navigational, measuring, and other instruments Other Electrical equipment, appliances, and components Transportation equipment Motor vehicles, bodies and trailers, and parts Other Other Wholesale trade Motor vehicles and motor vehicle parts and supplies Electrical goods Petroleum and petroleum products Other Retail trade Food and beverage stores Other Information Publishing industries Motion picture and sound recording industries Telecommunications Other Finance (except depository Institutions) and insurance Finance, except depository institutions Insurance carriers and related activities Real estate and rental and leasing Real estate Rental and leasing (except real estate) Professional, scientific, and technical services Architectural, engineering, and related services Computer systems design and related services Management, scientific, and technical consulting Other Other industries Agriculture, forestry, fishing, and hunting Mining Utilities Construction Transportation and warehousing Management of nonbanl< companies and enterprises Administration, support, and waste management Health care and social assistance Accommodation and food services Miscellaneous services 25,881 20,143 355 84 (D) 77 39 (D) 8,091 598 338 6,852 74 228 275 204 210 45 166 1,534 388 185 960 4,633 (D) 2,088 (D) 1,399 39 378 3,368 3,045 324 726 3,864 385 1,024 (D) (D) f (D) 782 741 3 12 26 (D) (D) 6 9 1 8 509 75 169 3 262 298 82 141 3 (D) 3 4 3 (D) (*) (D) 24,708 19,063 353 80 (D) 75 39 (D) 7,365 598 331 6,138 74 224 275 204 204 44 160 1,528 387 185 957 4,449 (D) 2,055 (D) 1,247 39 378 (D) (D) (D) 703 3,782 331 1,020 (D) (D) (D) (•) (D) 781 740 3 11 26 (D) (D) 6 9 1 508 74 169 3 262 290 82 137 3 (D) 3 (*) 3 (D) (*) (D) 1,173 1,080 2 4 2 (D) 725 7 715 (■) 4 6 1 5 6 2 (*) 185 33 152 (D) (D) (D) 22 82 55 4 23 2 1 1 2 2 (*) 8 4 (*) 4 27,507 20,128 368 80 (D) 75 39 (D) 7,610 608 331 6,373 74 224 275 204 254 46 208 1,681 387 192 1,103 4,985 (D) 2,055 (D) 1.734 42 380 3,302 3,041 261 708 4,855 337 1,079 (D) (D) (D) (*) (D) 803 763 3 11 26 (D) (D) 6 9 1 8 1,119 86 171 3 859 (D) 82 (D) 3 (D) 3 (*) 3 (D) (*) (D) 24,708 19,063 353 80 (D) 75 39 (D) 7,365 598 331 6,138 74 224 275 204 204 44 160 1,528 387 185 957 4,449 (D) 2,055 (D) 1,247 39 378 (D) (D) (D) 703 3,782 331 1,020 (D) (D) (D) (*) (D) 781 740 3 11 26 (D) (D) 6 9 1 8 508 74 169 3 262 290 82 137 3 (D) 3 (*) 3 (D) (•) (D) 547 512 (D) 5 5 (D) (D) (D) (D) (D) (D) (D) (D) (D) 1 (D) (D) 1 (D) (D) (D) (D) (*) (*) (D) (D) Majority-Owned Nonbank Affiliates FDIUS: Final 2002 Results 195 Table lll.l 5. Research and Development Funded by and Performed by Affiliates, by Country of UBO [Millions of dollars] Funded by affiliates Total (1) Performed by affiliates themselves (=col. 5) (2) By ottiers (3) Performed by affiliates Total ■ (4) For affiliates ttiemselves (=col. 2) (5) For Federal Government (6) For others (7) All countries Canada Europe Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands NonA/ay Spain Sweden Switzerland United Kingdom Other Latin America and Other Western Hemisphere South and Central America Brazil Mexico Panama Venezuela Other Other Western Hemisphere Bahamas Bermuda Netherlands Antilles United Kingdom Islands, Caribbean Other Africa South Africa Other IVIiddleEast Israel Kuwait Lebanon Saudi Arabia United Arab Emirates Other Asia and Pacific Australia , China Hong Kong India Japan Korea, Republic of Malaysia , New Zealand Singapore Taiwan Other United States Addenda: European Union (15) OPEC 25,881 1,509 19,556 15 92 109 544 2,894 5,506 354 254 (D) 1,726 54 (D) 278 3,439 4,237 5 1,041 (D) 45 (D) 2 (D) (•) 829 (D) (D) (•) 33 33 176 89 2 (D) (D) 2,876 36 18 (D) 2,636 (D) (D) 1 5 82 16,058 18 24,708 1,408 18,593 15 87 109 544 2,854 5,446 354 235 (D) 1,685 53 (D) 269 2,820 4,071 5 1,018 (D) 45 (D) 2 (D) (*) (D) (Dj '9 33 33 175 89 (*) (D) (D) 2,792 36 18 (D) 2,551 (D) (D) 1 5 82 689 15,716 18 1,173 101 963 5 1 40 60 19 41 2 9 620 166 23 (D) (D) (D) (D) 1 1 85 85 342 27,507 1,599 20,532 15 87 114 544 2,860 5,863 369 261 (D) 1,696 53 (D) 270 2,920 5,427 5 1,066 (D) 45 (D) 2 (■>; (D) D) (*) 33 33 175 89 (•) (D) (D) 3,413 36 18 (D) 3,159 (D) (D) 1 (D) 83 689 17,554 18 24,708 1,408 18,593 15 87 109 544 2,854 5,446 354 235 P) 1,685 53 (D) 269 2,820 4,071 5 1,018 (D) 45 (D) 2 (D) (*) (D) (D) (D) (*) 33 33 175 89 (*) (D) (D) 2,792 36 18 (D) 2,551 (D) (D) 1 5 82 689 15,716 18 547 1 (D) (•) 5 5 (D) (*) (*) (D) (D) (D) (D) 500 2,253 191 (D) (•) 1 (D) 15 26 11 1 101 (D) (D) (D) (*) (D) 621 608 (D) (D) 1 1,337 196 FDIUS: Final 2002 Results Majority-Owned Nonbank Affiliates Table lll.l 6. Research and Development Performed by Affiliates, Industry of Affiliate by Country of UBO [Millions of dollars] All countries (1) Canada (2) Europe Total (3) Of which: France (4) Germany (5) Netherlands (6) Switzerland (7) United Kingdom (8) Latin America and Other Western Hemispher° (9) Africa (10) Middle East (11) Asia and Pacific Total (12) Of which: Japan (13) All industries Manufacturing Food Beverages and tobacco products Textiles, apparel, and leather products Paper Printing and related support activities Petroleum and coal products Chemicals Basic chemicals Resins and synthetic rubber, fibers, and filaments Pharmaceuticals and medicines Soap, cleaning compounds, and toilet preparations Other Plastics and rubber products Nonmetallic mineral products Primary and fabricated metals Primary metals Fabricated metal products Machinery Agriculture, construction, and mining machinery Industrial machinery Other Computers and electronic products Computers and peripheral equipment Communications equipment Semiconductors and other electronic components Navigational, measuring, and other instruments Other Electrical equipment, appliances, and components Transportation equipment Motor vehicles, bodies and trailers, and parts Other Other Wholesale trade Motor vehicles and motor vehicle parts and supplies Electrical goods Petroleum and petroleum products Other Retail trade Food and beverage stores Other Information Publishing industries Motion picture and sound recording industries... Telecommunications Other Finance (except depository institutions) and insurance Finance, except depository institutions Insurance carriers and related activities Real estate and rental and leasing Real estate Rental and leasing (except real estate) Professional, scientific, and teclinlcal services Architectural, engineering, and related services Computer systems design and related services Management, scientific, and technical consulting Other Other industries Agriculture, forestry, fishing, and hunting Mining Utilities Construction Transportation and virarehousing Management of nonbank companies and enterprises Administration, support, and waste management Health care and social assistance Accommodation and food services Miscellaneous services 27,507 20,128 368 80 (D) 75 39 (D) 7,610 608 331 6,373 74 224 275 204 254 46 208 1,681 387 192 1,103 4,985 (D) 2,055 (D) 1,734 42 380 3,302 3,041 261 708 4,855 337 1,079 (D) (D) (D) (•) (D) 803 763 3 11 26 (D) (D) 6 9 1 8 1,119 86 171 3 859 (D) 82 (D) 3 (D) 3 3 (D) (*) (D) 1,599 1,147 7 1 1 3 3 (*) (D) (D) (D) (D) 1 (D) (D) (D) 5 2 3 (D) (D) (D) (D) (D) 77 (D) 5 (D) 4 (D) (D) (D) 3 (D) 5 (*) 5 (D) 3 33 3 (D) 14 10 3 20,532 15,975 349 74 12 47 31 (D) 7,098 583 297 5,992 45 181 156 192 155 25 129 1,390 (D) 182 (D) 2,776 59 706 351 1,660 316 3,021 2,810 211 (D) 3,297 3 672 (D) (D) <*) (*) 551 544 (*) 1 6 (D) (D) 1 8 378 83 45 (*) 248 (D) 51 36 3 (D) 3 (D) 2,860 2,199 13 3 1 1,202 361 (D) 693 9 (D) 67 (D) 8 6 2 27 27 (D) 3 (D) (D) 12 (D) (D) (D) 3 (D) 351 (D) (D) (•) (•) 259 259 1 1 1 (D) (D) 31 (D) (D) (D) (D) 5,863 5,317 1 1 11 4 1,411 94 (D) 1,144 9 (D) 53 11 69 1 68 1,061 3 (D) (D) (D) (D) (D) (D) 17 22 (D) (D) 21 379 3 4 372 (D) (D) (*) (D) (D) 29 (D) (D) 3 (D) 1,696 1,465 (D) 1 (D) 149 (*) 30 113 5 (*) 1 1 1 (D) (D) 878 (D) (D) (D) 1 25 2 23 (D) (D) (D) 12 (D) (D) (*) 59 (•) (D) (D) 3 3 2,920 2,453 (D) 2 (D) 2,172 (D) 2,052 (D) (D) 13 13 35 1 34 23 3 1 (D) 4 4 48 99 99 (D) (D) (D) (D) 1 (■) (*) (D) (*) ,Si 2 1 2 5,427 3,770 24 71 2 5 7 2,009 (D) (*) (D) (D) (D) 18 21 44 15 29 57 1 (•) 56 1,099 (D) (D) 15 (D) (D) 306 121 185 (D) (0) 2 (D) (D) 112 112 (•) (*) 5 5 (D) (D) 10 5 53 (D) (D) 1,066 869 4 (*) (•) (D) (D) (D) (D) (D) (D) (D) (D) (D) (D) 4 (D) (') 2 2 (') (•) (D) (D) (D) 33 (D) (*) (D) (D) (D) (D) (D) 175 (D) 2 5 49 (D) (D) 37 22 (D) (D) 4 4 (D) 17 3 (D) (D) 12 2 (D) (D) (•) (■) 3,413 1,351 7 5 (D) (D) (•) 403 14 316 22 43 113 11 28 12 16 (D) 16 8 (D) 453 6 (D) 73 (D) 42 20 (D) 149 (D) (D) 1,287 330 (D) (D) (D) (•) (D) 36 (D) 3 (D) 4 4 (*) (•) 637 (D) (•) (D) (D) (D) (•) (D) 3,159 1,232 5 5 (D) (D) 395 13 8 312 22 41 112 7 27 11 16 61 13 8 39 418 1 (D) 43 (D) 41 20 149 149 n 14 1,162 330 303 529 (D) (*) (D) 31 (D) (D) 1 1 (*) (•) 635 (D) (') (D) (D) (D) (•) (D) Majority-Owned Nonbank Affiliates FDIUS: Final 2002 Results 197 Table III.J 1. Selected Balance of Payments Data, by Industry of Affiliate ^ [Millions of dollars) Direct investment Capital inflows Ctiarges for position on a Direct investment Royalties and other services, nets historical-cost basis Total Equity capital ^ Reinvested earnings Intercompany debt income license fees, net ^ (1) (2) (3) (4) (5) (6) (7) (8) 1,197,711 113,384 119,422 -17,331 11,293 16,040 7,450 -3,780 449,945 33,945 40,262 1,838 -8,155 19,510 4,112 1,110 36,510 5,184 1,550 1,490 2,143 2,897 649 196 14,858 -2,585 (D) (D) -4,308 (D) (D) (D) 1,914 -14 171 -226 41 -163 26 12 (D) (D) 1,193 5 (D) 179 4 47 3,594 368 -60 407 21 525 -2 54 (D) (D) (D) (D) (D) (D) (D) (D) 96,038 -3,217 3,522 1,123 -7,862 4,417 491 -483 15,168 -1,234 -227 -280 -727 409 197 52 14,460 -2,791 998 -605 -3,183 ^31 113 -83 48,388 -1,511 1,729 2,207 -5,447 3,985 -77 -439 (D) (D) 435 (D) -100 (D) (D) (D) (D) (D) 588 (D) 1,595 (D) (D) (D) 9,294 3,007 (D) (D) 61 418 238 108 28,706 1,754 497 1,071 187 1,723 44 89 17,858 2,949 1,655 -338 1,631 492 75 173 8,467 1,544 (D) (D) 1,257 134 12 114 9,392 1,405 (D) (D) 375 357 62 59 43,683 (D) (D) -348 (D) 980 200 (D) (D) (D) (D) -495 (D) 28 22 -27 2,905 63 41 -197 219 -143 8 (D) (D) -3,996 186 345 -4,527 1,094 171 59 46,305 -8,435 -2,576 -5,141 -718 -3,392 149 -88 1,325 -89 116 -264 59 -221 1 35 11,226 -8,307 (D) -2,822 (D) -2,580 (D) 45 10,237 1,656 1,420 -768 1,003 183 7 17 (D) iD) (D) (D) (D) (D 6 P (D) (D) (D) (D) (D) (D (D) (D' 14,201 6,507 4.193 -761 3,075 -536 6 15 58,127 8,470 (D) 1,982 (D) 4,080 (D) 169 53,711 7,114 (D) 2,228 (D) 4,195 (D) (D) 4,415 1,357 292 -246 1,311 -115 (D) (D) (D) 173 (D) (D) (D) (D) 303 (D) 183,456 14,258 4,688 6,959 2,611 9,664 2,028 -2,867 (D) (D) 435 1,844 (D) 2,302 1,285 -128 18,639 843 -192 -528 1,562 -140 118 -1,544 (D) (D) (D) (D) (D) (D) 13 -14 70,067 4,858 (D) (D) -1,558 (D) 612 -1,181 23,058 1,262 (D) -453 (D) 638 3 146 13,137 621 69 132 421 820 -35 (D) 9,920 640 (D) -585 (D) -183 37 (D) (D) K (D) (D) (D) (D) (D) (D) (D) iD) (D) (D) (D) (D) 875 (D) 13,792 -222 318 519 -1,058 640 2 -5 33,473 -1,594 3,045 -8,774 4,135 -8,138 (D) -204 21,385 3,205 7,120 -2,514 -1,401 -2,095 -1 -267 (D) (D) 24,421 (D) (D) (D) 62 (D) 45,815 1,871 6,249 ^,493 116 -3,052 -9 (D) (D) (D) 18,173 (D) (D) (D) 72 297 34,275 3,101 (D) (D) -120 932 56 -22 27,302 2,845 (D) (D) (D) 1,160 (D) (D) 6,973 256 (D) ^26 (D) -228 (D) (D) 30,024 5,529 6,492 -533 -430 -19 (D) -1,046 (D) (D) (D) -859 (D) -789 41 3 3,836 399 1,063 -734 69 -702 (D) (D) 8,247 1,677 743 866 68 956 46 19 (D) (D) (D) 193 (D) 517 (D) (D) 213,776 31,880 24,732 -2,108 9,256 1,168 223 -148 2,566 -15 25 -57 17 -5 26 2 29,008 12,218 (D) -248 (D) 208 (D) 119 31,188 8,835 5,079 502 3,254 1,057 1 309 7,035 717 (D) -6 (D) 144 36 106 21,341 4,759 2,651 -572 2,680 -163 (D) -702 80,162 3,910 8,208 -1,235 -3,063 -929 1 12,317 160 236 -69 -7 645 8 11 (D) (D) 129 142 (D) 345 (D) 22,158 1,237 1,139 -466 565 -93 71 -10 (D) (D) 287 -99 (D) -42 12 (D) All industries Manufacturing Food Beverages and tobacco products Textiles, apparel, and leather products Paper Printing and related support activities , Petroleum and coal products Chemicals Basic chemicals Resins and synthetic rubber, fibers, and filaments Pharmaceuticals and medicines Soap, cleaning compounds, and toilet preparations Other Plastics and rubber products Nonmetallic mineral products Primary and fabricated metals Primary metals Fabricated metal products Ivlachinery Agriculture, construction, and mining machinery Industrial machinery Other Computers and electronic products Computers and penpheral equipment Communications equipment Semiconductors and other electronic components Navigational, measuring, and other instruments Other Electrical equipment, appliances, and components Transportation equipment Motor vehicles, bodies and trailers, and parts Other Other Wholesale trade Motor vehicles and motor vehicle parts and supplies Electrical goods Petroleum and petroleum products Other Retail trade Food and beverage stores Other Information Publishing industries Motion picture and sound recording industries Telecommunications Other Finance (except depository institutions) and insurance Finance, except depository institutions Insurance carriers and related activrties Real estate and rental and leasing Real estate Rental and leasing (except real estate) Professional, scientific, andteclinical services Architectural, engineering, and related services Computer systems design and related services Management, scientific, and technical consulting Other Other industries Agriculture, forestry, fishing, and hunting Mining Utilities Construction Transportation and warehousing Management of nonbank companies and enterprises Administration, support, and waste management Health care and social assistance Accommodation and food services Miscellaneous services 198 FDIUS: Final 2002 Results Majority-Owned Nonbank Affiliates Table III.J 2. Selected Balance of Payments Data, by Country of UBO ^ [Millions of dollars] Direct Investment position on a historical-cost basis (1) Capital inflows Total (2) Equity capital (3) Reinvested earnings (4) Intercompany debt (5) Direct investment income (6) Royalties and license lees. net ' (7) Charges for other services. net ' (8) All countries Canada Europe Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Nora/ay Spain Sweden Switzerland United Kingdom Other Latin America and Other Western Hemisphere South and Central America Brazil Mexico Panama Venezuela Other Other Western Hemisphere Bahamas Bermuda Netherlands Antilles United Kingdom Islands, Caribbean Other Africa South Africa Other Middle East Israel Kuwait Lebanon Saudi Arabia United Arab Emirates Other Asia and Pacific Australia China Hong Kong India Japan Korea. Republic of li/lalaysia New Zealand Singapore Taiwan Other United States Addenda: European Union (15) OPEC 1,197,711 93,096 823,760 1.207 10.915 (D) 7.876 113.898 139.657 4.272 15.943 (D) 115.055 (D) 5,061 (D) 48.699 329.149 1.413 94,276 12,619 1,305 8,330 -379 (D) (D) 81 ,657 149 63,018 (D) 14,459 (D) (D) (D) 1,122 8,600 1,625 959 366 4,194 1,148 309 169,880 22,876 376 2,589 115 132,663 3,120 887 254 3,009 3,367 624 (D) 772,359 9,734 113,384 11,866 57,076 123 713 (D) -495 -1,869 9,492 739 3,929 (D) 17,583 (D) -73 (D) 3.591 21 ,207 133 23,189 2,966 468 2,730 -218 (D) (D) 20,223 490 12,342 (D) 5,703 (D) (D) (D) -81 1,343 425 71 1 405 -235 676 18,843 8,333 -218 319 -23 8,362 322 15 -32 1,069 692 3 (D) 53,257 420 119,422 8,296 54,952 115 176 216 136 119 13,992 (D) 3,365 (D) 11,477 452 176 1,537 4,631 16,496 27 (D) (D) 91 (D) 27 (*) 11 (D) 163 (D) (D) 6.710 (D) 37 73 -37 797 126 10 1 280 (D) (D) 22,079 (0) (D) (D) 9 12.387 225 (D) 9 (D) (D) 31 (D) 49.842 329 -17,331 -1,819 -12,167 12 (D) (D) 38 601 -8.367 120 (D) (D) -492 -463 -311 (D) -6.397 3.138 (D) (D) -647 76 (D) (D) (D) (D) (D) 9 -3 (D) -130 -104 -75 (D) (D) -441 -59 33 1 -354 (D) (D) -701 -1,543 (D) 36 -35 923 116 (D) -11 17 -129 -35 (D) -5.275 -564 11,293 5,389 14,291 -4 (D) (D) -669 -2,588 3.867 (D) (D) -189 6.599 (D) 63 -496 5.356 1.573 (D) -7,749 (D) 302 -195 (D) (D) 118 (D) 319 (D) -29 -877 (D) (0) (D) (D) 987 358 28 -1 478 -29 152 -2,536 (D) -254 (D) 3 ^.949 -19 17 -30 (D) (D) 7 (D) 8.690 654 16,040 (D) 9,081 52 (D) (D) 235 3.319 ^.816 364 (D) (D) 3.595 -430 -254 434 -2.487 7.723 (D) 3,752 -486 108 (D) -198 (D) (D) 4.239 -8 4,599 (D) -30 (D) 6 (D) (D) -319 -21 41 3 -299 -15 -28 2,800 -1,061 -20 83 -34 3,808 158 S -8 35 -123 -31 (D) 12,009 -510 7,450 176 2,838 2 (D) 121 39 708 (D) (D) 37 4 489 (D) (*) -160 543 -200 (D) 284 9 9 275 (D) (D) (D) (*) (•) 4,156 69 2 3.938 (D) 2 (D) 2,254 -3,780 843 -2,039 (D) 35 -1 (D) -573 -69 27 32 (D) 936 -54 (D) -678 -370 (D) (D) (D) 190 184 (D) (D) (D) (D) 132 6 -4 4 3 3 (•) (D) -6 (D) (') (D) -2,646 -2 (D) 6 2 -1.970 -245 (D) -22 2 14 -1,627 (D) Part IV Bank Affiliates 199 Bank Affiliates FDIUS: Final 2002 Results 201 Table IV.A 1. Selected Financial and Operating Data of Bank Affiliates [Millions of dollars, except as noted] All bank affiliates (1) Majority-owned bank affiliates (2) Other bank affiliates (3) Number of affiliates that were required to file a report ' . Number of companies consolidated on affiliate reports^ Total assets Total liabilities Owners' equity Gross property, plant, and equipment Commercial property ^ Other" Sales Net income Sales of services ^ To US. persons To foreign persons Interest income Interest expense Compensation of employees Employment (thousands) 268 926 2,209,051 2,133,652 75,399 (D) (D) (D) 151,872 -980 (D) (D) 2,942 100,656 78,506 15,288 145.4 265 923 2,207,060 2,131,847 75,213 11,552 3,172 8,380 151,743 -1,002 17,049 14,107 2,942 100,575 78,475 15,253 145.0 3 3 1,991 1,805 185 (D) (D) (D) 129 22 (D) (D) (•) 81 31 34 0.4 202 FDIUS: Final 2002 Results Bank Affiliates Table IV.J 2. Selected Balance of Payments Data of All Bank Affiliates, by Country of UBO ^ [Millions of dollars] Direct investment position on a tiistorical-cost basis Capital inflows (1) Total (2) Equity capital ' (3) Reinvested earnings (4) Direct investment Intercompany income debt (5) (6) Royalties and license fees, net ^ (7) Charges for other services, net 3 (8) All countries Canada Europe Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Nonway Spain Sweden Switzerland United Kingdom Other Latin America and Other Western Hemisphere South and Central America Brazil l\/lexico Panama Venezuela Other Other Western Hemisphere Bahamas Bermuda Netherlands Antilles United Kingdom Islands, Caribbean Other Africa South Africa Other Middle East Israel Kuwait Lebanon Saudi Arabia United Arab Emirates Other Asia and Pacific Australia China Hong Kong India Japan Korea, Republic of Ivlalaysia New Zealand Singapore Taiwan Other United States Addenda: European Union (15) OPEC 74,251 11,499 49,984 (D) (D) (D) (D) 8,222 16,873 (D) 840 (D) 1 1,468 (D) 519 (D) 218 2,449 (D) 864 (D) (D) 683 626 (D) (D) (D) (D) 1,471 1,447 (D) (D) -60 8,583 (D) 153 201 108 4,833 366 (D) 216 746 175 (D) 49,342 887 4,070 1,627 2,324 (D) (D) (D) (D) 2,941 -2,122 (D) -228 (D) (D) -306 (D) -86 (D) (D) 176 (D) 70 (D) (D) 58 -6 (D) (D) (D) (D) 73 142 (D) (D) -74 -146 (D) (D) 24 -6 -131 -6 (D) 22 (D) 2 (D) 2,443 70 9,159 2,766 5,590 (D) (D) 2,965 1,271 (D) 142 (D) (D) (D) (D) (D) 301 (D) (D) (D) 2 (D) 5 3 (D) (D) -9 769 (D) (D) (D) 712 (D) 3 (D) 4 5,231 7 -5,063 -1,137 -3,266 (D) (D) (D) (D) -24 -3,393 (D) -369 269 (*) (D) (D) (D) (D) -9 (D) 164 68 (D) (D) 54 -10 (D) (D) (D) (D) (D) (D) (D) (D) -65 -891 -^7 (D) 10 (D) -842 (D) (D) 19 1 -2 (D) -2,787 63 -26 -2 (*) n (*) (*) D {*) (*) (*) -23 (D) (D) (*) -2,111 -756 -1,186 (D) (D) (D) (D) -20 -1,947 (D) -287 627 (•) -27 (D) (D) 931 206 205 69 (D) (D) 75 10 2 2 (D) (D) 53 110 4 2 -64 -444 24 (D) 10 -14 -589 49 2 19 18 (D) (D) -709 87 89 -14 37 1 (D) -68 -1 8 (D) ?■! 18 (D) 1 1 1 1 (*) 9 5 {*) 4 55 ?i 1 1 31 (*) a 29 1 Bank Affiliates FDIUS: Final 2002 Results 203 Table IV.A 3. Selected Financial and Operating Data of Majority-Owned Bank Affiliates, by Country of UBO Number of affiliates reporting ' (1) Number of companies consolidated ■ (2) Millions of dollars Total assets (3) Total liabilities (4) Owners' equity (5) Gross property, plant, and equipment Total (6) Of which: Commercial property ' (7) Sales (8) Net income (9) Interest income (10) interest expense (11) Compensation of employees (12) Thousands of employees (13) All countries Canada Europe Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Norway Spain Sweden Switzerland United Kingdom Other Latin America and Other Western Hemisphere South and Central America Brazil Mexico Panama Venezuela Other Other Western Hemisphere Bahamas Bermuda Netherlands Antilles United Kingdom Islands, Caribbean Other Africa South Africa Other Middle East Israel Kuwait Lebanon Saudi Arabia United Arab Emirates Other Asia and Pacific Australia China Hong Kong India Japan Korea, Republic of Malaysia New Zealand Singapore Taiwan Other United Stales Addenda: European Union (15) OPEC 265 14 84 2 3 1 1 8 12 2 9 4 2 12 3 4 12 9 33 32 8 3 1 8 12 1 1 2 2 16 8 2 2 4 115 923 118 543 2 3 1 1 62 174 18 14 106 2 17 3 9 115 16 47 46 10 3 1 16 16 1 1 2 2 25 17 2 2 4 187 4 9 11 7 85 17 1 5 29 19 1 527 27 2,207,060 206,417 1,661,657 (D) 19,358 (D) (D) 202,773 468,309 (D) 25,456 274,216 (D) 31,929 29,018 220,173 314,791 7,335 25,706 (D) 10,639 (D) (D) 8,348 3,547 (D) (D) (D) (D) 26,742 23,292 (D) (D) 2,000 283,505 12,571 2,532 1,838 1,642 235,524 5,501 (D) 3,777 17,960 (D) (D) 1,440,356 10,958 2,131,847 194,857 1,611,521 (D) 19,095 (D) (D) 194,613 451,436 (D) 24,661 269,720 (D) 30,391 28,878 219,654 299,622 7,115 23,238 (D) 9,767 (D) (D) 7,657 2,920 (D) (D) (D) (D) 25,270 21,844 (D) (D) 2,060 75,213 11,560 50,136 (D) 263 (D) (D) 8,160 16,873 (D) 795 4,496 (D) 1,537 140 519 15,169 220 2,468 (D) 872 (D) (D) 691 627 (D) (D) (D) (D) 1,472 1,448 (D) (D) -60 274,169 9,336 10,972 1,599 2,378 153 1,647 191 1,535 107 229,617 5,907 5,200 301 (D) (D) 3,564 213 17,246 714 (D) (D) (D) (D) 1,390,864 49,492 10,079 878 11,552 1,976 7,429 (D) (D) (D) (D) 1,015 1,035 (D) 97 (D) (D) 295 (D) (D) 2,284 71 202 (D) 40 2 (D) 127 33 (D) (D) (D) (D) 135 112 (D) (D) 14 1,795 (D) (D) 43 12 1,467 46 (D) 2 128 15 (D) 5,907 145 3,172 (D) 1,802 (D) (D) 41 (D) (D) (D) (D) 81 81 (D) 59 (D) (D) (D) (*) 622 (D) (D) 1 (D) 5 67 2 1,802 62 151,743 9,841 104,041 (D) (D) (D) (D) 32,217 22,365 (D) 1,312 13,704 (D) 1,478 1,028 (D) 23,848 310 1,299 (D) 472 (D) (D) 485 175 (D) (D) (D) (D) 1,102 977 (D) (D) 94 35,316 401 142 80 97 33,444 260 (D) 114 647 (D) (D) 99,305 581 -1,002 -978 -176 (D) (D) (D) (D) 290 -2,057 (D) -289 793 (D) 2 120 (D) 1,381 -3 197 (D) 61 (D) (D) 78 -6 (D) (D) (D) (D) 76 133 (D) (D) -63 -135 46 31 10 -14 -331 59 (D) 21 24 (D) (D) 183 99 100,575 6,951 63,714 (D) (D) (D) (D) 12,979 17,462 (D) 1,170 10,657 (D) 1,336 999 (D) 11,997 285 1,140 (D) 413 (D) (D) 422 146 (D) (D) (D) (D) 819 728 (D) (D) (D) 27,843 330 101 63 72 26,295 189 (D) 106 582 (D) (D) 59,393 496 78,475 4,743 49,176 (D) (D) (D) (D) 10,234 15,348 (D) 970 7,998 (D) 983 862 (D) 6,432 167 479 (D) 227 (D) (D) (D) 56 (D) (D) (D) (D) 524 466 (D) (D) 49 23,502 184 45 30 52 22,657 91 (D) 67 305 (D) (D) 44,f 157 15,253 2,141 11,136 (D) 27 (D) (D) 1,105 4,363 (D) 84 (D) (D) 213 20 536 2,298 (D) 217 (D) 71 14 (D) 89 38 (D) (D) (D) (D) 160 139 (D) (D) 13 1,576 51 21 14 17 1,313 43 (D) 7 85 (D) (D) 10,585 109 145.0 20.4 99.6 A 0,2 A A 11.7 16.5 I 0.7 0.0 J A 3.5 0.1 2,6 31.3 H 2.9 H 0.6 0.1 A 1.7 0.5 A 0.0 0.0 0.0 0.0 A A 0.0 A 1.7 1.5 A 0.0 0.0 A 0.1 20.1 0.3 0.4 0.3 0.4 16.2 0.8 A 0.0 0.1 1.4 A 92.8 1.9 Note. The following ranges are given in employment cells that are suppressed. The size ranges are: A- 99,999; M— 100,000 or more. ■1 to 499: F— 500 to 999: G— 1,000 to 2,499; H-2,500 to 4,999; 1—5,000 lo 9.999; J— 10.000 to 24,999; K-25,000 to 49,999; L-50,000 to 204 FDIUS: Final 2002 Results Bank Affiliates Table IV.A 9. Selected Financial and Operating Data of Majority-Owned Bank Affiliates by State Gross property, plant, and equipment (millions of dollars) Total (1) Of which: Commercial property (2) Thousands of employees (3) Total New England: Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont Mideast: Delaware District of Columbia. Maryland New Jersey New York Pennsylvania Great Lakes: Illinois Indiana Michigan Ohio Wisconsin Plains: Iowa Kansas Minnesota Missouri Nebrasl• B. Mailing report forms to a foreign address — BEA will accommodate foreign owners that wish to have forms sent directly to them. However, be aware that the extra time consumed in mailing to and from a '< foreign place may make meeting filing deadlines difficult. In such cases, you are strongly encouraged to use BEA's electronic filing option. Go to our web site at www.bea.gov/astar for details about this option. Go to vyww.bea.gov/bea/survevs/fdiusurv.htm to o bta i n forms on line. Page 10 BE-12(I) (REV. 12/2002) V. FIUNG THE BE-12 — Continued Extensions — For the efficient processing of the survey and timely dissemination of the results, it is important that your report be filed by the due date. Nevertheless, reasonable requests for extension of the filing deadline will be granted. Requests for extensions of more than 30 days MUST be in writing, should explain the basis for the request, and must be received BEFORE the due date of the report. You may telephone BEA directly with requests for extensions of 30 days or less. See V.D. below. Assistance — For assistance, telephone (202) 606-5577 between 8:30 a.m. and 4:30 p.m. eastern time, FAX (202) 606-5319, or send e-mail to be12/15@bea.gov. Forms can be obtained from BEA's web site at: www.bea.gov/bea/surveys/fdiusurv.htm Annual Stockholders' report or other financial statements — Business enterprises issuing annual reports to stockholders are to furnish a copy of their FY 2002 annual report or Form 10K when filing the BE-12 report. If you do not publish an annual stockholders' report or file Form 10K, please provide any financial statements that may be prepared. Information contained in these statements is useful in reviewing your data and may reduce the need for further contact. Section 5(c) of the International Investment and Trade in Services Act, Public Law 94-472, 90 Stat. 2059, 22 U.S.C. 3101-3108, as amended, provides that this information be used for analytical and statical purposes only and that it be held strictly confidential. Number of copies — File a single original copy of each form and supplement. If you are not filing electronically, this should be the copy with the address label in Part 1, if such a labeled copy has been provided by BEA. (Make corrections to the address on the label, if necessary.) You must also retain a file copy of each report for five years to facilitate resolution of any questions that BEA may have concerning your report. (Both copies are protected by law; see the statement on confidentiality in paragraph V.H., below.) 229 G. Where to send the report — To file electronically, see our web site at www.bea.qov/astar . Send reports filed by mail through the U.S. Postal Service to: U.S. Department of Commerce Bureau of Economic Analysis BE-49(A) Washington, DC 20230 Direct reports filed by private delivery service to: U.S. Department of Commerce Bureau of Economic Analysis BE-49(A) Shipping and Receiving Section, M100 1441 L Street, NW Washington, DC 20005 H. Confidentiality — The information filed in this report may be used only for analytical and statistical purposes and access to the information shall be available only to officials and employees (including consultants and contractors and their employees) of agencies designated by the President to perform functions under the Act. The President may authorize the exchange of the information between agencies or officials designated to perform functions under the Act, but only for analytical and statistical purposes. No official or employee (including consultants and contractors and their employees) shall publish or make available any information collected under the Act in such a manner that the person to whom the information relates can be specifically identified. Reports and copies of reports prepared pursuant to the Act are confidential and their submission or disclosure shall not be compelled by any person without the prior written permission of the person filing the report and the customer of such person where the information supplied is identifiable as being derived from the records of such customer (22 U.S.C. 3104). BE-12(I) (REV. 12/2002) Page 11 230 2002 BE-12 ORDER FORM To obtain additional copies of BE-12 Forms and Instructions, go to our website (see V.D. on page 11 of this instruction booklet), telephone 202-606-5577, FAX 202-606-5319, e-mail be 12/1 5@bea.gov or complete this order form. Enter the quantity of each item you require: Item Quantity Item Quantity Form BE-12 Long Form Guide to Industry and Foreign Trade Classifications for International Surveys Form BE-12 Short Form Form BE-12 BANK Form Form BE-12(X) Claim for not filing Instruction Booklet PLEASE COMPLETE BELOW Name of U.S. Reporter Attention: Street Address City, State, ZIP Code RETURN TO A m Bureau of Economic ' Washington, DC 202 Analysis, BE-49(A) 30 Page 12 BE-12(I) (REV. 12/2002) 231 0MB No, 0608-0042: Approval Expires 12/31/2005 roRMBE-12(X) (REV. 12/20021 US. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS BENCHMARK SURVEY OF FOREIGN DIRECT INVESTMENT IN THE UNITED STATES — 2002 CLAIM FOR EXEMPTION FROM FILING FORM BE-12(LF), BE-12ISF), OR BE-12 BANK ELECTRONIC See our web site at www.bea.gov/astar FILING for details. OR U.S. Department of Commerce Bureau of Economic Analysis, BE-49(A) Washington, DC 20230 OR U.S. Department of Commerce Bureau of Economic Analysis, BE-49(A} Shipping and Receiving Section, (VllOO 1441 L Street, NW Washington, DC 20005 MAIL REPORTS TO DELIVER REPORTS TO Public reporting burden for this claim for exemption is estimated to vary from 20 to 60 minutes per response, with an average of 45 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Director, Bureau of Economic Analysis (BE-1), U.S. Department of Commerce, Washington, DC 20230, and to the Office of Management and Budget, Paperwork Reduction Project 0608-0042, Washington, DC 20503. INSTRUCTIONS Response required — Section 806.4 of 15 CFR, Chapter Vlll, requires that all persons subject to the reporting requirements of the BE-12 Survey respond, whether or not they are contacted by BEA. It also requires that persons, or their agents, who are contacted by BEA about reporting in this survey, must respond in writing. They may respond by: • certifying in writing, within 30 days of being contacted by BEA to the fact that the person had no direct investment within the purview of the reporting requirements of the BE-12 survey: • completing and returning the Form BE-12(X) Claim for Exemption From Filing Form BE-12(LF), BE-12(SF), or BE-12 BANK within 30 days of receipt of BE-12 survey report forms; or • filing the properly completed Form BE-12(LF), BE-12(SF) or BE-12 BANK by May 31, 2003, as required. If this claim for exemption is disallowed, the original due date of the BE- 12 remains in force. See the Instruction Booklet for complete reporting requirements and definitions. U.S. AFFILIATE'S 2002 FISCAL YEAR — The affiliate's financial reporting year that had an ending date in calentjar year 2002. Assistance — Telephone: (202) 606-5577: FAX: (202) 606-5319; E-mail: be12/15@bea.gov NOTE — 18 U.S.C. 1001 (Crimes and Criminal Procedure) makes it a criminal offense to make a willfully false statement or representation to any department or agency of the United States as to any matter within its jurisdiction. PENALTIES — Whoever fails to report shall be subject to a civil penalty of not less than $2,500, and not more than $25,000, and to injunctive relief commanding such person to comply, or both. Whoever willfully fails to report shall be fined not more than $10,000 and, if an individual, may be imprisoned for not more than one year, or both. See additional information on page 2 of this form. BEA USE ONLY Control number MANDATORY — This survey is being conducted pursuant to the International Investment and Trade in Services Survey Act (P.L. 94-472, 22 U.S.C. 3101-3108, as amended - hereinafter "the Act"), and the filing of reports is mandatory. CONFIDENTIALITY — The Act provides that your report to this Bureau is CONFIDENTIAL and may be used only for analytical or statistical purposes. Without your prior written permission, the information filed in your report CANNOT be presented in a manner that allows it to be individually identified. Your report CANNOT be used for purposes of taxation, investigation, or regulation. Copies retained in your files are immune from legal process. IDENTIFICATION OF U.S. AFFILIATE A. Name and address of U.S. business enterprise for which this claim is filed — If the enterprise received a prelabeled Form BE-12(LF), BE-12(SF), or BE-12 BANK, but is exempt from filing those forms, enter below the name, address, and BEA Identification Number from the label affixed to Part 1, item 1, of that form. If a prelabeled form was not received, enter full name and address. Name of U.S. affiliate c/o (care of) Street or PO Box City and State ZIP Code Foreign Postal Code OR B. Enter Employer Identification Number(s) used by the U.S. business enterprise to file income and payroll taxes. Primary Other 1006 n BASIS OF CLAIM FOR EXEMPTION - Complete item 1 or item 2 Ion back), whichever is applicable. vU Complete ALL items (l.a. through 1.h.) below This U.S. business enterprise was a U.S. affiliate of a foreign person at the end of its fiscal year that ended in calendar year 2002, but is exempt from filing Form BE-12(LF), BE-12(SF), or BE-12 BANK because, on a fully consolidated, or in the case of real estate investments, an aggregated basis, each of the following three items for the U.S. affiliate (not the foreign parent's share) did not exceed $10 million (positive or negative) at the end of, or for, its fiscal year that ended in calendar year 2002: • Total assets (do not net out liabilities) • Sales or gross operating revenues, excluding sales taxes, and • Net income (loss) after provision for U.S. income taxes. a. Total assets at close FY 2002 — Do not net out liabilities. b. Sales or gross operating revenues for FY 2002, excluding sales taxes — Do not give gross margin. c. Net income (loss) for FY 2002, after provision for U.S. income taxes Amount Mil. Thous. Dels d. Country of foreign parent BEA USE ONLY 3016 1 e. Country of ultimate beneficial owner (UBO) — See Instruction Boolilet, page 7, instruction II. Q., for definition of UBO. BEA USE ONLY 3022 1 f. Total liabilities Amount Mil. Thous. ,Dols. Major activity of fully consolidated U.S. affiliate - Briefly describe the major product(s) and/or service(s) of the U.S. affiliate. If a product, also state what is done to it, i.e., whether it is mined, manufactured, sold at wholesale, transported, packaged, etc. (For example, "manufacture widgets to sell at wholesale.") Industry of this affiliate - Enter the 4-digit international surveys industry (ISI) code of the industry with the largest sales or gross operating revenues. For a full explanation of each code see the Guide to Industry and Foreign Trade Classifications for International Surveys, 2002. 1164 ISI Code PERSON TO CONSULT CONCERNING QUESTIONS ABOUT THIS REPORT — Enter name and address fslame Address I 2 I Nun CERTIFICATION — The undersigned official certifies that this report has been prepared in accordance with the applicable instructions, is complete, and is substantially accurate except that, in accordance with instruction lll.tj. on page 8 of the Instruction Booklet, estimates may have been provided. Authorized official's signature Date TELEPHONE 1 Area code ^Ex Print or type name and title 5 I Nun FAX NUMBER 4 Area code Telephone number FAX number May we use e-mail to correspond with you to discuss questions relating to this Form BE-12(X), including questions that may contain information about your company that you may consider confidential? (Note that electronic mail is not inherently confidential; we will treat information we receive as confidential, but your e-mail is not necessarily secure against interception by a third party.) 1 I I Yes — If yes. please ^ zDno provide your e-mail address. E-mail address PLEASE CONTINUE ON REVERSE SIDE 232 2. This U.S. business enterprise is exempt from filing Form BE-12(LF), BE-12(SF), or BE-12 BANK because: 00110 n j (a) This U.S. business enterprise was not a U.S. affiliate of a foreign person at any time during calendar year 2002 but had been a U.S. affiliate of a foreign person at some time between January 1, 1997 and the beginning of calendar year 2002. Give date foreign ownership ceased or went below W percent. Month Day Year lb) (c) This U.S. business enterprise was not a U.S. affiliate of a foreign person at any time during calendar year 2002 and was not a U.S. affiliate of a foreign person at any time since January 1, 1997. I I This U.S. business enterprise was a U.S. affiliate of a foreign person during its fiscal year that ended in calendar year 2002 but is fully consolidated into the BE-12 report for another U.S. affiliate — Enter full name, address, and BE A Identification Number of the consolidated U.S. affiliate that is reporting to BE A: Name 00120 1 Street or P.O. Box 00130 1 City and State ZIP Code BEA Identification Number (d) (e) I' This U.S. business enterprise is exempt from filing because its owners are citizens of the United States who are resident abroad as a result of official employment by the U.S. Government (including the immediate family of such persons), or its owners have been and expect to be resident abroad for less than one year. I I This U.S. business enterprise was a U.S. affiliate of a foreign person at some time during calendar year 2002, but ceased to be a U.S. affiliate before the end of its fiscal year that ended in calendar year 2002. Give date foreign ownership ceased or went below 10 percent. Month Day Year (f) □ This U.S. business enterprise is a U.S. affiliate of a foreign person, but it became a U.S. affiliate after the end of the U.S. business enterprise's fiscal year that ended in calendar year 2002, or if a newly formed company, its first fiscal year did not end until sometime in calendar year 2003. Complete items (V and (2) below. (1) Give date when the U.S. business enterprise became a U.S. affiliate of a foreign person. AND Month Day Year Note that a Form BE-13 should have been filed to reflect the acquisition. Forms can be found at: www.bea.gov/bea/surveys/fdiusurv.htm (2) Give the ending date of the U.S. business enterprise's fiscal year that ended in calendar year 2002, or if a newly formed company, give the ending date of its first fiscal year. Month Day Year (9) □ Other - Specify and include reference to section of regulations or instructions on which claim is based. 7015 ' Authority — This survey is being conducted pursuant to the International Investment and Trade in Services Survey Act (P.L. 94-472, 90 Stat. 2059, 22 U.S.C. 3101-3108, as amended - hereinafter "the Act"), and the filing of reports is MANDATORY pursuant to Section 5(b)(2) of the Act (22 U.S.C. 3104). Penalties — Whoever fails to report shall be subject to a civil penalty of not less than $2,500, and not more than $25,000, and to injunctive relief commanding such person to comply, or both. Whoever willfully fails to report shall be fined not more than $10,000 and, if an individual, may be imprisoned for not more than one year, or both. Any officer, director, employee, or agent of any corporation who knowingly participates in such violations, upon conviction, may be punished by a like fine, imprisonment or both (22 U.S.C. 3105). Notwithstanding any other provision of the law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the Paperwork Reduction Act, unless that collection of information displays a currently valid OMB Control Number. Page 2 FORM BE-12(X) (REV. 12/2002) 233 0MB No. 0608-0042: Approval Expires 12/31/2005 U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS formBE-12(LF) (REV 12/20021 BENCHMARK SURVEY OF FOREIGN DIRECT INVESTMENT IN THE UNITED STATES — 2002 (LONG FORM) ELECTRONIC See our web site at www.bea.gov/astar for details, FILING OR MAIL U.S. Department of Commerce REPORTS Bureau of Economic Analysis, BE-49(A) TO Washington. DC 20230 OR DELIVER U.S. Department of Commerce REPORTS Bureau of Economic Analysis, BE-49(A) TO Shipping and Receiving Section. MIOO 1441 L Street. NW Washington. DC 20005 Important CHANGE IN REPORTING REQUIREMENTS — Starting with the 2002 BE-12, U.S. affiliates that are minority-owned by foreign parents should not file Form BE-12(LF), Most minority-owned U.S. affiliates must file Form BE-12(SF)- Read the Instruction Booklet before completing this form. Definitions of affiliate, U.S. affiliate, business enterprise, foreign parent, minority-owned. majority*owned, etc., are found on page 7 of the booklet. Insurance companies see special instructions on pages 8 and 9 of the booklet. Additional instructions by line item are at the back of this form. 1. PLEASE REVIEW THE QUESTIONS BELOW TO DETERMINE IF YOUR U.S. BUSINESS IS REQUIRED TO FILE FORM BE-12(LF) la. Were at least 10 percent of the voting rights in your business directly or indirectly owned by a foreign person at the end of your 2002 fiscal year? (See 2 below for fiscal year definition) I ! Yes — Go to question 1b NOTE: Your business is hereinafter referred to as a "U.S. affiliate." I I No — You are not required to file Form BE-12(LF) but may be required to file Form BE-12(X); see Instruction Bookletf page 6, instruction I. A. 4, lb. Did any one of the items-Total assets. Sales or gross opera- ting revenues, or Net income (loss)-for the U.S. affiliate (not just the foreign parent's share) exceed SlO million at the end of, or for, its 2002 fiscal year? (Real estate companies see Instruction Booklet, page 6, instruction I.C.) Yes — Go to question 1c. J No — You are not required to file Form BE-12(LF) but are required to file Form BE-12(X); see Instruction Booklet, page 6. instruction I. A. 4. 1c. Is ttie U.S. affiliate a bank or bank holding company? D D Yes — You are not required to file Form BE-12(LF) but are required to file Form BE-12 BANK by May 31, 2003: see Instruction Booklet, page 6. instruction I.A.3. No- ■ Go to question 1d- 1d. Was the U.S. affiliate majority-owned by foreign parents at the end of its 2002 fiscal year? (A U.S. affiliate is "majority- owned" if the combined direct and indirect ownership interests of all foreign parents of the U.S. affiliate exceed 50 percent.) 1 I Yes — Go to question 1e- I I No — You are not required to file Form BE-12(LF) but are required to file Form BE-1 2(SF) by May 31 . 2003: see Instruction Bookletf page 6. instruction I. A. 2. le. Did any one of the items-Total assets, Sales or gross operating revenues, or Net income (loss}--for the U.S. affiliate (not just the foreign parent's share) exceed $125 million at the end of. or for, its 2002 fiscal year? I I Yes — You are required to file Form BE-12(LF) by May 31, 2003, LJ No — You are required to file Form BE-12(SF) by May 31. 2003: see Instruction Booklet^ page 6, instruction LA. 2. 2. U.S. AFFILIATE'S 2002 FISCAL YEAR — The affiliate s finan- cial reporting year that had an ending date in calendar year 2002. 3. CONSOLIDATED REPORTING— A U.S. affiliate must file on a fully consolidated domestic U.S. basis, including in the consolidation all nonbank U.S. affiliates in which it directly or indirectly owns more than 50 percent of the outstanding voting interest. The consolidation rules are found on page 25 at the back of this form. 4. ASSISTANCE — Telephone: 202-606-5577; FAX: 202-606-5319; E-mail: be12/1 5@bea.gov 5. DUE DATE — A completed report on Form BE-12(LF) is due no later than May 31, 2003. 6. GENERAL NOTES a. Report figures such as the number of acres and the number of employees to the nearest whole unit. b. Report currency amounts in U.S. dollars rounded to thousands (omitting 000). Do not enter amounts in the shaded portions of each line. EXAMPLE — If amount is $1,334,615.00, report as Bil. Mil. Thous. Dols. 335 c. If an item is between + or - $500.00 enter "0," d. Use parentheses to indicate negative numbers. BEA USE ONLY Control number Public reporting burden for this long form is estimated to vary from 7 to 715 hours per response, with an average of 86.5 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Director, Bureau of Economic Analysis (BE-1), U.S. Department of Commerce. Washington, DC 20230; and to the Office of Management and Budget, Paperwork Reduction Project 0608-0042, Washington, DC 20503. MANDATORY — This survey is being conducted pursuant to the International Investment and Trade In Services Survey Act (hereinafter "the Act") and the filing of reports is mandatory. CONFIDENTIALITY — The Act provides that your report to this Bureau is CONFIDENTIAL and may be used only for analytical or statistical purposes. Without your prior written permission, the information filed in your report CANNOT be presented in a manner that allows it to be individually identified. Your report CANNOT be used for purposes of taxation, investigation, or regulation. Copies retained in your files are immune from legal process. IDENTIFICATION OF U.S. AFFILIATE , Name and address of U.S. affiliate — If there are any changes in the name or address, make the changes directly on the label. If no label has been afnxed, enter the name and address in full. Name of U.S. Affiliate c/o (care of) Street or PO Box City and State Foreign Postal Code OR 2. Location of U.S. affiliate — If the mailing address in item 1 is in care of someone other than the U.S. affiliate, give the name and location of the primary U.S. headquarters of the affiliate. For U.S. affiliates that are real estate investments with no U.S. headquarters, give the name (if any) and location of the real estate. (If the real estate is in more than one location give the name and location of the real estate with the largest gross book value.) Name Street or PO Box City and State ZIP Code 3. Consolidated reporting by the U.S. affiliate- The consolidation rules are found on page 25 at the back of this form- Is more than 50 percent of the voting interest in this U.S. affiliate owned by another U.S. affiliate of your foreign parent? "Voting interest" is defined in instructions 13-17 on page 27 at the back of this form. 1400 1 I I Yes 2 d No If the answer is "Yes" — Do not complete this report unless exception 3d or 3e described in the consolidation rules on page 25 applies. If these exceptions do not apply, please forward this BE-12 survey packet to the U.S. business enterprise owning your company more than 50 percent, and notify BEA of the action taken by filing Form BE-12(X) with item 2(c) completed. If the answer is "No" — Complete this report in accordance with the consolidation rules on page 25. 4. Enter Employer Identification Number(s) used by the U.S. affiliate to file income and payroll taxes. Primary Other 1006 1 , REPORTING PERIOD - Reporting period instructions are found on page 25 at the back of this form. This U.S. affiliate's 2002 fiscal year ended in calendar year 2002 on > ig Example — If the fiscal year ended on March 31, report for the 12 month period ended March 31, 2002. Day 6. Did the U.S. business enterprise become a U.S. affiliate during its fiscal year that ended in calendar year 20027 1008 1 I I Yes J No If the answer is "Yes" — Enter date U.S. business enterprise became a U.S. affiliate and see instruction 6 on page 26 at ttie back of this form: Month Day NOTE — For a U.S. business enterprise that became a U.S. affiliate during its 2002 fiscal year, leave the close FY 2001 data columns blank. PENALTIES — Whoever fails to report shall be subject to a civil penalty of not less than $2,500, and not more than $25,000, and to injunctive relief commanding such person to comply, or both. Whoever willfully fails to report shall be fined not more than $10,000 and, if an individual, may be imprisoned for not more than one year, or both. Any officer, director, employee, or agent of any corporation who knowingly participates in such violations, upon conviction, may be punished by a like fine, imprisonment or both. See additional information on page 25 at the back of this form. PERSON TO CONSULT CONCERNING QUESTIONS ABOUT THIS REPORT — Enter name and address Name Address I 2 I Nun CERTIFICATION — The undersigned official certifies that this report has been prepared in accordance with the applicable instructions, is complete, and is substantially accurate except that, in accordance with instruction III.G, on page 8 of the Instruction Booklet, estimates may have been provided. Authorized official's signature Date TELEPHONE NUMBER 1 Area code 3 Extension Print or type name and title 5 I Nun FAX NUMBER 4 Area code Telephone number FAX number May we use e-mail to correspond with you to discuss questions relating to this Form BE-12(LF), including questions that may contain information about your company that you may consider confidential? (Note that electronic mail is not inherently confidential; we will treat information we receive as confidential, but your e-mail is not necessarily secure against interception by a third party.) 1 I I Yes — If yes. please provide your ' 2nNo e-mail address. E-mail address 234 IDENTIFICATION OF U.S. AFFILIATE — Continued Form of organization of U.S. affiliate — Mark (X) one 1011 1 1 I Incorporated in U.S. Reporting rules for unincorporated affiliates are found in instruction 7 on page 26 at the back of this form. 2 I I U.S. partnership 3 i 1 U.S. branch of a foreign person 4 1 I Limited Liability Company 5 I I Real property not in 1-4 above 6 I I Business enterprise incorporated abroad, but whose head office is located in the United States and whose business activity is conducted in, or from, the United States 7 I I Other — Specify -w 8. U.S. affiliates fully consolidated in this report — The consolidation rules are found on page 25. If this report is for a single unconsolidated U.S. affiliate, enter "1" in the box below. If more than one U.S. affiliate is fully consolidated in this report, enter the number of U.S. affiliates fully consolidated. Hereinafter they are considered to be one U.S. affiliate. Exclude from the full consolidation all minority-owned U.S. business enterprises, and all foreign business enterprises owned by this U.S. affiliate. Include such affiliates in this report on the equity basis, or cost basis if less than 20 percent owned. Except as noted in the consolidation rules on page 25, more-than-50-percent-owned U.S. affiliates must be fully consolidated in this report unless permission has been received in writing from BEA to do otherwise, those not fully consolidated must file a separate Form BE-12(LF), BE-12(SF), BE-12 BANK, or BE.12(X). Number — If number is greater thart one, complete the Supplement A. 9. U.S. affiliates NOT fully consolidated — See instruction 9 on page 27 at the back of this form. Number of U.S. affiliates in which this U.S. affiliate has an ownership interest that ARE NOT fully consolidated in this report. Number — If number is not zero, complete Supplement B. The U.S. affiliate named in item 1 must include data for such U.S. affiliates in this report on an equity basis, or cost basis if less than 20 percent owned, and must notify such other U.S. affiliates of their obligation to file a Form BE-12(LFI, BE12(SF), BE-12 BANK, or BE-12(X) in their own names. 10. Does this U.S. affiliate own any foreign operations? iDygs 2nNo If "Yes" — Do not consolidate foreign operations in this report; report foreign operations on an equity basis, or cost basis if less than 20 percent owned. Reporting rules for foreign operations are found in instruction 3a on page 25 at the back of this form. 11. Did this U.S. affiliate acquire or establish any U.S. business enterprises or segments during the reporting period that are now contained in this report on a fully consolidated basis, merged into this U.S. affiliate, or reflected as an equity investment? iDves 2nNo If "Yes" — File a Form BE- 13 to reffect each acquisition if you have not done so already. Forms can be found at: www.bea.gov/bea/surveys/fdiusurv.htm 12. Did this U.S. affiliate sell or otherwise transfer ownership of any of its U.S. subsidiaries, operating divisions, segments, etc., during its fiscal year that ended in calendar year 2002? 1016 1 I I Yes ' 2nNo IMPORTANT NOTE — Complete columns 3 and 4 ONLY if the percentage of direct voting interest in columns 1 and 2 DOES NOT match the direct equity interest. "Voting interest" and "equity interest" are defined in instructions 13-17 on page 27 at the back of this form. Ownership — Enter percent of ownership, to a tenth of one percent based on voting stock and equity interest for an incorporated affiliate or an equivalent interest for an unincorporated affiliate, in this U.S. affiliate. 13. Ownership held directly by all foreign parents of this affiliate —Give name of each foreign parent (if more than 4, continue on a separate sheet.) REPORTING PERIOD Voting interest Close FY 2002 (1) Close FY 2001 (2) Equity interest Close FY 2002 (3) Close FY 2001 (4) 14. Ownership held directly by all U.S. affiliates of the foreign parents — If you put an entry in column (1) or (2), complete items 18-21 below. m^o 15. Ownership held directly by all other U.S. persons 16. Ownership held directly by all other foreign persons 17. TOTAL of directly held ownership interests - Sum of items 13 through 16 100.0% 100.0% 100.0% 100.0% If there is an entry in item 14, column (1) or column (2) — Enter in items 18-21 below, the name(s) and percentagels) of ownership of each U.S. affiliate holding a direct ownership interest in this U.S. affiliate (if more than 4, continue on a separate sheet). Also, for each ownership chain, enter the name of each U.S. affiliate that is directly owned by a foreign parent. U.S. affiliate holding direct ownership interest in this U.S. affiliate U.S. affiliate in ownership chain that is directly owned by a foreign parent Name (a) Percent direct voting ow/nership in this U.S. affiliate (For the close of each fiscal year, the sum of these percentages for all direct owners must equal item U, columns (1) and (2).) Close FY 2002 (b) Close FY 2001 (c) Name (d) BEA USE ONLY 18. 19. 20. 21. BEA USE ONLY Page 2 FORM BE-12(LF) (REV. 12/2002) 235 m-J^tm IDENTIFICATION OF U.S. AFFILIATE — Continued 22. Major activity of fully consolidated U.S. affiliate — Mark fX) one Select the one activity below which best describes the major activity of the fully consolidated U.S. affiliate. For an inactive affiliate, select the activity based on its last active period; for "start-ups," select the intended activity. 1072 ^ 1 O Producer of goods ' 5 U Real estate ^ 2 □ Seller of goods you do not produce ' e D Other— Specify ^ ' 3 U Producer or distributor of information ' 4 1 ' Provider of services 23. What is (are) the major product(s) and/or service(s) involved in this activity? If a product, also state what is done to it, i.e., wfiether it is mined, manufactured, sold at wfiolesale. transported, packaged, etc. (For example, "manufacture widgets to sell at wholesale.") 1163 1 Industry classification of fully consolidated U.S. affiliate (based on sales or gross operating revenues) — Enter the 4 digit International Surveys Industry (ISI) code(s) and the sales (as defined in item 59 on page 6) associated with each code. For a full explanation of each code, see the Guide to Industry and Foreign Trade Classifications for International Surveys, 2002. If you use fewer than ten codes, you must account for total sales in items 24 through 32. For an inactive affiliate, show the industry classification(s) based on its last active period: for "start-ups" with no sales, show the intended activity(ies). Holding companies (ISI code 5512) must show total income as reported in item 63 on page 6. Note, that a U.S. affiliate that is a conglomerate must determine its industry code based on the activities of the fully consolidated U.S. business enterprise. The "holding company" classification, therefore, is often an invalid industry classification for a conglomerate. Book publishers and Real Estate Investment Trusts (REITs) — See instructions for items 24 through 37 on page 27 at the back of this form. Employment — Include in column (3) all employees, including part-time employees, on the payroll at the end of FY 2002, associated with each code. (For employees engaged in manufacturing activities, also see the instructions for column (4) of the state schedule located at the top of page 13). A count taken at some other date during the reporting period may be given provided it is a reasonable proxy for the number on the payroll at the end of the fiscal year that ended in calendar year 2002. Reporting employment (including how to report when employment is subject to unusual variations) is discussed in more detail under the instructions for items 170-227 on page 29 at the back of this form. NOTE: For most U.S. Reporters, the employment distribution in column (3) is not proportional to the sales distribution in column (2). Therefore, do not distribute employment by industry simply by multiplying total employment by the percentage of distribution of sales. 24. Enter code with largest sales ii64 ISI code (1) Sales (2) Number of employees engaged in activities encompassed in each industry code in column (11 Bil. Mil. Thous.|Dols. (3) 2 1 S 1 3 25. Enter code with 2nd largest sales 1165 2 1 3 26. Enter code with 3rd largest sales 1156 2 1 3 27. Enter code with 4th largest sales ii67 2 ' 3 28. Enter code with 5th largest sales lies 2 1 3 29. Enter code with 6th largest sales nes 2 1 3 30. Enter code with 7th largest sales ii70 2 1 3 31. Enter code with 8th largest sales ii7i 2 ' 3 32. Enter code with 9th largest sales ii76 2 ' 3 33. Enter code with 10th largest sales 1177 2 1 3 34. Number of employees of administrative offices and other auxiliary units — Number of employees at corporate headquarters, central administrative, and regional offices located in the U.S. that provide administration and management or support services for the consolidated U.S. affiliate. Support services include accounting, data processing, legal, research and development and testing, and warehousing. Also include employees located at a U.S. operating unit that provide administration and management or support services to more than one U.S. operating unit. Do not include employees located at a U.S. operating unit that provide administration and management or support services for only the operating unit at which they are located. Instead, report such employees in column (3) of items 24 through 33 above on the line(s) in which column (1) shows the industry(ies) of the operating unit(s) where these employees are located. , ,75 3 35. Sales and employees accounted for — Sum of items 24 through 34 1172 2 3 36. Sales and employees not accounted for above — Item 33 must have an entry if you are to report amounts on this line , ,73 2 ' 3 37. TOTAL sales and employees — Sum of items 35 and 36, columns (2) and (3) (Total sales must equal item 59 and also item 76.^ ^^ 1174 1 2 1 s ! 3 38. Percentage of e-commerce sales — Of the total sales reported on line 37 column 2, approximately what percentage (rounded to the nearest whole number from to 100) represents e-commerce sales? E-commerce sales consist of orders placed over the Internet, or through an Extranet, an Electronic Data Interchange network, electronic mail, or some other online system. Payment may or may not be made online. DO NOT INCLUDE e-commerce 1179 sales to domestic U.S. establishments consolidated into this report. However, INCLUDE sales to foreign and domestic U.S. affiliates NOT consolidated into this report. If none enter zero. 1 39. Number of employees covered by collective bargaining agreements — Of the total employees reported in item 37, column (3), what is the number covered by collective bargaining agreements. If none, enter zero. Employees covered by collective bargaining agreements are defined in instruction 39 on page 27 at the back of this form. „75 1 BEA USE ONLY 1200 1201 1202 1203 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 FORM BE-12(LF) (REV. 12/2002) Page 3 236 IDENTIFICATION OF U.S. AFFILIATE — Continued INSURANCE INDUSTRY ACTIVITIES — Premiums earned and losses incurred Insurance related activities are covered by industry codes 5242 (agencies, brokerages, and other insurance related activities), 5243 (insurance carriers, except life insurance carriers), and 5249 (life insurance carriers). 40a. Of the total sales and gross operating revenues reported on line 37, column 2, were any of the sales or revenues generated by insurance related activities? 1 1180 1 LJ Yes — Answer items 40b and 40c 2 D No — Skip to item 4 la NOTE: Complete items 40b and 40c ONLY if item 40a is answered "Yes." 40b. Premiums earned — Calculate as premiums written during the year, plus unearned premiums at the beginning of the year, minus unearned premiums at the end of the year. Amount (1) Bil. Mil. Thous.,Dols. 40c. Losses incurred — For property and casualty insurance, calculate as losses paid during the year, plus the net increase (or minus the net decrease) during the year in case reserves and in losses incurred but not reported. For life insurance, losses reflect policy claims on reinsurance assumed or ceded, or on primary insurance sold, adjusted for changes in claims due, unpaid, and in course of collection. For both types of insurance, do not include loss adjustment expenses. WHOLESALE AND RETAIL TRADE INDUSTRY ACTIVITIES — Goods purchased for resale without further processing Wholesale trade industry activities include the w^holesale trade of durable goods and nondurable goods. The wholesale trade of durable goods is covered by industry codes 4231 through 4239. The wholesale trade of nondurable goods is covered by industry codes 4241 through 4249. Retail trade industry activities are covered by industry codes 4410, 4420, 4431, 4440, 4450, 4461, 4471, 4480, 4510, 4520, 4530, and 4540. See the Guide to Industry and Foreign Trade Classifications for International Surveys, 2002 for a detailed description of each of the wholesale and retail trade industry codes listed above. 41a. Of the total sales and gross operating revenues reported on line 37, column 2, were any of the sales or revenues generated by wholesale or retail trade activities? 1183 1 CH Yes — Answer items 41b and 41c 2 D No — Skip to item 42 Amount (1) NOTE: Complete items 41b and 41c ONLY if item 41a is answered "Yes.' Bil. Mil. Thous. 41b. Enter the cost of goods purchased for resale without further processing during the fiscal year that ended in calendar year 2002? 41c. Enter the closing balances at the end of fiscal years 2001 and 2002 of the inventory of goods purchased for resale without further processing. Dols, BALANCES Close FY 2002 (1) Bil. Mil. Thous.lDols. Close FY 2001 (Unrestatedl (2) Mil. Thous.lDols. Remarks Page 4 FORM BE-12(LF) (REV. 12/2002) 237 ■iri™ FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE 1 Report all amounts in thousands of U.S. dollars. W Section A — BALANCE SHEET NOTE — Disaggregate all asset and liability items in the detail shown; in particular show receivables and payables between the affiliate and the foreign parentis) and foreign affiliates of the foreign parentis) in the proper asset and liability accounts of the affiliate rather than as a net amount. Insurance companies see Instruction Booklet, pages 8 and 9, instruction IV.A, for special instructions. • ASSETS 42. Cash items — Deposits in financial institutions and other cash items. Do NOT include overdrafts as negative cast). Note — Although including certificates of deposit (CDs) in CASH is permitted by generally accepted accounting principles, exclude from cash CDs and other deposits of the U.S. affiliate held by the foreign parentis) or foreign affiliates of the foreign parentis). Include them in item 43, current receivables, below. 2101 BALANCES Close FY 2002 ID Close FY 2001 (Unrestated) (2) Bil. Mil. Thous.'Dols. Bil. Mil. Thous. Dels. 1 1 S 1 2 1 $ 1 43. Current receivables — Trade accounts, trade notes, and other current receivables, net of allowances for doubtful items. Include CDs and other deposits held by the foreign parentis) or foreign affiliates of the foreign parentis). (See note in item 42 above.) 2102 1 I 2 ! 44. Inventories — Land development companies, exclude land held for resale linclude in item 45); finance and insurance companies, exclude inventories of marketable securities linclude in item 45 or item 48, as appropriate). The primary basis of inventory valuation is (Mark (X) one)^ 2121 ^ 1 D LIFO 3 n Other — Specify 2 D FIFO 2104 1 1 2 1 45. Other current assets, including land held for resale and current marketable securities. 210s 1 1 2 1 46. Equity investment in unconsolidated U.S. affiliates and all foreign operations — For U.S. affiliates and foreign business enterprises owned 20 percent or more {including those that are majority-owned), report on the equity basis to include equity in undistributed earnings since acquisition; for U.S. affiliates and foreign business enterprises owned less than 20 percent, report at cost. 2106 1 1 2 1 47. Property, plant, and equipment, net — Include land, timber, mineral rights, structures, machinery, equipment, special tools, deposit containers, construction in progress, and capitali2ed tangible and intangible exploration and development costs of the affiliate, at historical cost net of accumulated depreciation, depletion, and amortization. Include items on capital leases from others, per FAS 13, and property you own that you lease to others under operating leases. Exclude all other types of intangible assets, and land held for resale. lAn unincorporated affiliate should include items owned by its foreign parent but which are in the affiliate's possession in the United States whether or not carried on the affiliate's own books or records.) 2107 1 2 48. Other noncurrent assets — Include other equity investments whether carried at cost or on an equity basis; other investments; intangible assets, net of amortization; and all noncurrent assets not shown in item 46 or 47 above. — Specify major items ^ 2108 1 2 49. TOTAL ASSETS — Sum of items 42 throu 1 s 2 S 1 • LIABILITIES 50. Current liabilities and long-term debt — Trade accounts, trade notes, other current liabilities, and long-term debt. 2111 1 1 $ 1 2 1 $ 1 51. Other noncurrent liabilities — Items other than those identifiable as long-term debt, such as deferred taxes and underlying minority interest in consolidated U.S. subsidiaries. — Specify major items ^ 2113 1 1 2 1 ■;? TOTAI 1 lARII ITIF<£ *iiiwn nf itnwni. '=^ '. — '^ *= ^ - --- 1 S 1 2 ' S 1 • OWNERS' EQUITY 53. Capital stock and additional paid-in capital — Common and preferred, voting and non-voting capital stock and additional paid-in capital. 2116 1 1 $ 1 2 1 S ' 54. Retained earnings (deficit) 2117 1 ' 2 ' 55. Treasury stock 21 18 1 1 ( 1 2 1 1 ) 1 56. Accumulated other comprehensive income (loss) 56a. Translation adjustment component 2122 Close FY 2002 ID Close FY 2001 (Unrestated) (2) Bil. Mil. Thous. IdoIs. Bil. Mil. Thous. .Dels. 1 '. $ 1 2 1 $ 1 56b. All other components 2128 1 ' $ 2 ' $ 56c. Total accumulated other comprehensive income (loss) — 1 1 2 1 57. Other — Specify major items -g 2119 1 1 2 1 58. TOTAL OWNERS- EQUITY (INCORPORATED OR UNINCORPORATED U.S. AFFILIATE) — Sum of items 53 through 57 for incorporated U.S. affiliates and those unincorporated U.S. affiliates for which this breakdovi/n Is available. For those unincorporated U.S. affiliates that cannot provide a breakdown for items 53 through 57, report total owners' equity in this item. For both incorporated and unincorporated U.S. affiliates, total owners' equity 1 1 $ ' 2 1 $ ' FORM BE-12(LF) (REV, 12/2002) Page 5 238 B3fffW ^ Sect FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE — Continued Report all amounts in thousands of U.S. dollars. Section B — INCOME STATEMENT Insurance companies see Instruction Booklet, pages 8 and 9, instruction IV. A, for special instructions. • INCOIViE 59. Sales or gross operating revenues, excluding sales taxes — Gross sales minus returns, allowances, and discounts; or gross operating revenues. Exclude sales or consumption taxes levied directly on the consumer and excise taxes levied directly on manufacturers, wholesalers, and retailers. Include revenues generated during the year from the operations of a discontinued business segment. However, DO NOT include gains or losses on DISPOSALS of discontinued operations. Report such gains and losses on line 61 below. Item 59 must equal item 37, column 2 and also item 76. Amount (II Bil. Mil. Thous. ,Dols, 60. Income from equity investments in unconsolidated business enterprises (domestic and foreign) — For those owned 20 percent or more (including those that are majority-owned), report equity in earnings during reporting period; for those owned less than 20 percent, report dividends received. Do not include interest income. 61. Certain realized and unrealized gains (losses) — Include gains (losses) before income tax effect (which should be included in item 65 below) resulting from: a. Sale or disposition of investment securities, and FAS 115 impairment losses. Dealers in financial instruments (including securities, currencies, derivatives, and other financial instruments) and finance and insurance companies, see special instructions on page 27 at the back of this form; b. Sale or disposition of land, other property, plant and equipment, or other assets, and FAS 144 impairment losses. DO NOT include gains or losses from the sale of inventory assets in the ordinary course of trade or business. Real estate companies, see special instructions on page 27 at the back of this form; c. Goodwill impairment as defined by FAS 142; d. Restructuring. Include restructuring costs that reflect write downs or writeoffs of assets or liabilities. DO NOT include actual payments, or charges to establish reserves for future actual payments, such as for severance pay, and fees to accountants, lawyers, consultants, or other contractors. Instead, include actual payments, and charges to established reserves for future actual payments, on line 64 (cost of goods sold or services rendered, and selling, general, and administrative expenses); e. DISPOSALS of discontinued operations. DO NOT include income from the operations of a discontinued segment. Report such income as part of your income from operations in items 24 through 37; f. Remeasurement of the U.S. affiliate's foreign-currency-denominated assets and liabilities due to changes in foreign exchange rates during the reporting period; g. Extraordinary, unusual, or infrequently occurring items that are material. Include losses from accidental damage or disasters, after estimated insurance reimbursement. Include other material items, including writeups, write downs, and writeoffs of tangible and intangible assets; gains (losses) from the sale or other disposition of capital assets; and gains (losses) from the sale or other disposition of financial assets, including securities, to the extent not included above. 2151 62. Other income — Nonoperating and other income not included above. — Specify major items -^ 63. TOTAL INCOME — Sum of items 59 through 62 ■ • COSTS AND EXPENSES 64. Cost of goods sold or services rendered, and selling, general, and administrative expenses — Operating expenses that relate to sales or gross operating revenues, item 59, and selling, general, and administrative expenses. Include production royalty payments to governments, their subdivisions and agencies, and to other persons. Include depletion charges representing the amortization of the actual cost of capital assets, but exclude all other depletion charges. Also exclude goodwill impairment as defined by FAS 142. Report such impairment losses on line 61 above. For guidance on restructuring costs, see item 61d above. 65. Income taxes — Provision for U.S. Federal, State, and local income taxes. Exclude production royalty paymentS- 66. Other costs and expenses not included above, including underlying minority interest in profits and losses that arise out of consolidation. — Specify major items -^ 67. TOTAL COSTS AND EXPENSES — Sum of items 64 through 66 • NET INCOME 68. Net income (loss) after provision for U.S. Federal, State, and local income taxes - item 67. ■ Item 63 minus Section C - - CHANGE IN RETAINED EARNINGS — If retained earnings is not shown as a separate account, show change in total owners' equity. 69. Balance, close FY 2001 before restatement due to a change in the entity (i.e., due to mergers, acquisitions, divestitures, etc.) or due to a change in accounting methods or principles, if any - Enter amount from item 54, column (2); if retained earnings is not shown as a separate account, enter amount from item 58, column (2). 70. Increase (decrease) to FY 2001 closing balance resulting from restatement due to a change in the entity or a change in accounting methods or principles. — Specify reasons for change -^ 71. FY 2001 closing balance as restated — Item 69 plus item 70. 72. Net income (loss) — Enter amount from item 88. 73. Dividends or remitted earnings — Incorporated affiliate, enter amount of dividends declared, inclusive of withholding taxes, out of current or prior-period income, on common and preferred stock, excluding stock dividends. Unincorporated affiliate, enter amount of current or prior-period net income distributed to owners. 74. Other increases (decreases) in retained earnings, including stock or liquidating dividends, or in total owners' equity if retained earnings is not shown as a separate account, including capital contributions (return of capital). — Specify -g 75. FY 2002 closing balance — Sum of items 71, 72, and 74 minus item 73; also must equal item 54, column 111 if retained earnings is shown as a separate account, or item 58 column IV if retained earnings is NOT shown as a separate account. Page 6 FORM BE-12(LF) (REV. 12/2002) 239 FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE — Continued Report all amounts in thousands of U.S. dollars. Section D — DISTRIBUTION OF SALES OR GROSS OPERATING REVENUES Distribute sales or gross operating revenues among three categories - sales of goods, sales of services, and investment income. For the purposes of this distribution, "goods" are normally economic outputs that are tangible and "services" are normally economic outputs that are intangible. When a sale consists of both goods and services and cannot be unbundled (i.e., the goods and services are not separately billed), classify the sales as goods or services based on whichever accounts for a majority of the value. Give best estimates if actual figures are not available. wriTP L BEFORE COMPLETING THIS SECTION, PLEASE SEE THE INSTRUCTIONS FOR ITEMS " r 76 THROUGH 83 STARTING ON PAGE 28 AT THE BACK OF THIS FORM. Insurance companies also see Instruction Booklet, pages 8 and 9, instruction IV. A., for special instructions. 76. TOTAL SALES OR GROSS OPERATING REVENUES, EXCLUDING SALES TAXES — Equals item 59, and also sum of items 77 through 79 Amount (1) Bil. Mil. Thous. Dels 77. Sales of goods 78. Investment income included in gross operating revenues (e.g., generated by finance and insurance subsidiaries or unitsi 79. SALES OF SERVICES, TOTAL — Sum of items 80 through 83 ■ 80. To U.S. persons 81. To foreign parent(s) and foreign affiliates of the foreign parent(s) of this U.S. affiliate 82. To foreign affiliates of this U.S. affiliate 83. To other foreign persons f Section E — EMPLOYEE COMPENSATION EMPLOYEE COMPENSATION — All expenditures made by an employer in connection with the employment of workers, including cash payments, payments-in-kind, and employer expenditures for employee benefit plans. Base compensation data on payroll records. Such data should relate to activities during the reporting period regardless of whether such activities were charged as an expense on the income statement, charged to inventories, or capitalized. DO NOT include data related to activities of a prior period, such as those capitalized or charged to inventories in prior periods. Employee compensation is defined more fully in instructions 84-86 on page 28 at the back of this form. 84. Wages and salaries — Employees' gross earnings (before payroll deductions), and all direct and in-kind payments by the employer to employees Amount for all employees (1) Bil. Mil. Thous. Dols, 85. Employee benefit plans — Employer expenditures for all employee benefit plans, including those required by statute, such as employer's Social Security taxes, those resulting from collective bargaining contracts, and those that are voluntary. 86. TOTAL EMPLOYEE COMPENSATION — Sum of items 84 and 85 ■ Section F - COMPOSITION OF EXTERNAL FINANCES OF U.S. AFFILIATE NOTE — Entries in column (2) correspond to items in Part III and Part IV as follows: item 87, column (2) equals item 239, column (1) for all Part Ill's filed -I- item 2'76, column (2); item 88, column (2) equals item 240, column (1) for all Part Ill's filed + item 290, column (2) CLOSE FY 2002 87. Current liabilities and long-term debt - Column IV must equal item 50, column (11. ,254 Total Equals sum of columns I2H4I (1) Mil. Thous. ,Dols. With foreign parentis) and foreign affiliates of the foreign parent(s) (2) Bil. Mil. Thous. I Dols. With other foreign persons, including foreign affiliates of this U.S. affiliate (3) With U.S. persons (4) Bil. Mil. Thous. Dols. Bil. Mil. Thous. Dols. 88. Current and noncurrent receivables — Column (V must equal item 43. column (1), and that part of item 48, column H), that is noncurrent receivables. NOTE — Include certificates of deposit and other deposits held by the foreign parentis) or foreign affiliates of the foreign parent(s) that would otherwise be included in cash, item 42. (See Note in item 42.) 22: BEA USE ONLY W Section G — LAND AND OTHER PROPERTY. PLANT, AND EQUIPMENT Land and other property, plant, and equipment includes all land and other property, plant, and equipment carried anywhere on the U.S. affiliate's balance sheet, whether or not the intent is to hold and actively use the asset in the operating activity of the business. Land refers to any part of the earth's surface; other property, plant, and equipment includes timber, mineral and like rights owned, all structures, machinery, equipment, special tools, and other depreciable property, construction in progress, and capitalized tangible and intangible exploration and development costs, but excludes other types of intangible assets. In addition to items carried in property, plant, and equipment (item 47), such items may be carried in other noncurrent assets (item 48), or in other current assets (item 45). Include land, being leased from others under capital leases. Exclude items which the affiliate has sold on a capital lease basis. Include the capitalized value of timber, mineral, and like rights leased by the affiliate from others. All acres of U.S. land owned at close of FY 2002. Exclude acres of mineral rights if you do not own the land. (To nearest whole acre) (1) Number Gross book value of all land and other property, plant, and equipment at historical cost (Include mineral rights) (2) Bil. Mil. Thous. Dols. 89. TOTAL LAND AND OTHER PROPERTY, PLANT, AND EQUIPMENT AT CLOSE OF FY 2002 — Column 12) must equal item 102, column ill and item 170. column 15). 90. Gross book value of land owned — The portion of item 89, column (2), that is the gross book value of land owned for which acreage is reported in item 89, column (1). Include undeveloped and agricultural land, and also the value of land you own that is located under developed properties such as office buildings, apartment buildings, retail buildings, etc. If your accounting and reporting systems do not separately account for land and building components when buildings sit upon land that you own, provide your best estimate of the gross book value of the land owned. Amount (1) Bil. Mil. Thous. Dols. FORM BE-12(LF) (REV. 12/2002) Page? 240 BSfflW FtNANCIAL AND OPERATING DATA OF U.S. AFFILIATE — Continued ^^^^^ Report all amounts in thousands of U.S. dollars. ^ Section G - LAND AND OTHER PROPERTY, PLANT, AND EQUIPMENT — Continued SCHEDULE OF CHANGE FROM FY 2001 CLOSING BALANCES TO FY 2002 CLOSING BALANCES . BALANCES AT CLOSE FY 2001, BEFORE RESTATEMENT DUE TO A CHANGE IN THE ENTITY 91. Net book value of all land and other property, plant, and equipment, wherever carried on the balance sheet Amount (1) Bil. Mil. Thous. Dols. . CHANGES DURING FY 2002 92. Give amount by which the net book value in item 91 would be restated due to a change in the entity (i.e., due to mergers, acquisitions, divestitures, etc.), if the answer to item 6, 1 1, or 12 was "Yes," or due to a change in accounting methods or principles. If a decrease, put amount in parentheses. Include in item 61 any gains (losses) resulting from the sale or disposition of U.S. affiliates, and from asset impairments as defined in FAS 144. 2387 Expenditures — Expenditures cover all acquisitions by, or transfers to, the U.S. affiliate of land and other property, plant, and equipment. Exclude all changes in land and other property, plant, and equipment accounted for by a change in the entity (i.e., due to mergers, acquisitions, divestitures, etc.) or a change in accounting methods or principles during your 2002 fiscal year; include such changes in item 92 above. Expenditures by the U.S. affiliate for, or transfers into the U.S. affiliate of, 93. Land — Report expenditures for land except land held for resale. Report land held for resale in item 96. 94. Mineral rights, including timber — Report capitalized expenditures to acquire mineral and timber rights. Exclude capitalized expenditures for the exploration and development of natural resources. Include those amounts in 95 or 96. 2389 95. 96. Plant, equipment, and property other than land and mineral rights (Exclude changes due to mergers and acquisitions. Report them in item 92.) If it is burdensome to exclude all used plant, equipment, etc., from nan, then minor used items may be included in item 95, and only major used items reported m item 96. 95. New 96. Used 97. Depreciation 98. Depletion 99. Net book value of sales, retirements, or transfers out of assets defined for inclusion in this section, and other decreases (increases) — Include divestitures of U.S. affiliates in item 92. Include in item 61 any gains (losses) resulting from the sale or disposition of property, plant, and equipment. — Specify major items -^ • BALANCES AT CLOSE FY 2002 100. Net book value — Sum of items 91 ttirough 96, minus sum of items 97 through 99. 101. Accumulated depreciation and depletion 102. Gross book value of all land and other property, plant, and equipment, wherever carried on the balance sheet — Sum of items 100 and 101: must also equal item 89, column 12!, and item 170, column 15). •ADDENDUM 103. Expensed petroleum and mining exploration and development expenditures — Include expensed expendi- tures to acquire or lease mineral rights. Do not include expenditures made in prior years that are reclassified in the current year; such expenditures are considered to be expenditures only in the year when initially expended. 2398 Section H — INTEREST AND TAXES 104. Interest income from ail sources (including foreign parents and affiliates), after deduction of taxes withheld at the source. Do not net against interest expense (item 105.) Amount (II Bil. Mil. Thous. Dols 105. Interest expense plus interest capitalized, paid or due to all payees (including foreign parents and affiliates), before deduction of U.S. tax withheld by the affiliate. Do not net against interest income litem 104). 106. Taxes (EXCLUDING income and payroll taxes) and non-tax payments (including production royalties and import and export duties) — Amount paid or accrued for the year, net of refunds or credits, to U.S. Federal, State, and local governments, their subdivisions and agencies for — • Sales, consumption, and excise taxes collected by you on goods and services you sold • Property and other taxes on the value of assets and capital • Any remaining taxes (other than income and payroll taxes) • Non-tax liabilities (other than for purchases of goods and services) such as — • Import and export duties • Production royalties for natural resources • License fees, fines, penalties, and similar items ► Section I — TECHNOLOGY Research and development (R&D) expenditures — Include all costs incurred in performing R&D, including depreciation, amortization, wages and salaries, taxes, materials and supplies, allocated overhead, and indirect costs. R&D is defined more fully in instructions 107-1 12 on page 28 at the back of this form. NOTE — Items 107 through 110 pertain to R&D performed by the U.S. affiliate, including R&D performed by the U.S. affiliate for others under contract. This is the basis on which National Science Foundation surveys request information on R&D. The FAS 2 measure of R&D (i.e., R&D from which the firm benefits) is the sum of items 108 and 111. 107. R&D performed BY the U.S. affiliate, total — Sum of items 108, 109, and 1 10 2403 Amount (1) Bil. Mil. Thous., Dols. 108. For own account 109. For Federal Government (i.e., federally financed R&D) 110. For others under contract 111. R&D performed FOR U.S. affiliate by others on a contractual basis 112. Research and development employees — All employees engaged in R&D, including managers, scientists, engineers, and other professional and technical employees. Research and development employees are defined in instruction 112 on page 28. Number (1) BEA USE ONLY 2410 1 Pages FORM BE-12(LFI (REV. 12/2002) 241 REMARKS — Please use this space for any explanation that may be essential in understanding your reported data. FORM BE-12(LF) (REV. 12/2002) Page 9 242 FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE — Continued Report all amounts in thousands of U.S. dollars. Section J — EXPORTS AND IMPORTS OF U.S. AFFILIATE — GOODS ONLY, DO NOT INCLUDE SERVICES (software publishers : discussion below under packaged general use computer software! IMPORTANT NOTES — This section requires the reporting of data on U.S. trade in goods of the U.S. affiliate in the fiscal year that ended in calendar year 2002. Report data on a "shipped" basis, i.e., on the basis of when, where, and to (or by) whom the goods were shipped. This is the same basis as official U.S. trade statistics to which these data will be compared. Do not record a U.S. import or U.S. export if the goods did not physically enter or leave {i.e., were not physically shipped to or from) the United States, even if they were charged to the U.S. affiliate by, or charged by the U.S. affiliate to, a foreign person. U.S. affiliates normally keep their accounting records on a "charged" basis, i.e., on the basis of when, where, and to (or by) whom the goods were charged. The "charged" basis may be used if there is no material difference between it and the "shipped" basis. If there is a material difference, the "shipped" basis must be used or adjustments made to the data on a "charged" basis to approximate a "shipped" basis. Amounts in this section cover all goods that physically left or entered the U.S. customs area in fiscal year 2002. Include consigned goods in the trade figures when shipped or received, even though they are not normally recorded as sales or purchases, or entered into intercompany accounts when initially consigned. Include capital goods but exclude the value of ships, planes, railroad rolling stock, and trucks that were temporarily outside the United States transporting people or merchandise. In-transit goods — Exclude from exports and imports the value of any in-transit goods. In-transit goods are goods that are not processed or consumed by residents in the intermediate country(ies) through which they transit; the in-transit goods enter those countries only because those countries are along the shipping lines between the exporting and importing countries. In-transit goods are goods that are en route from one foreign country to another via the United States (such as from Canada to Mexico via the United States), and goods en route from one part of the United States to another part via a foreign country (such as from Alaska to Washington State via Canada). Packaged general use computer software — Include exports and imports of packaged general use computer software. Value such exports and imports at the full transaction value, i.e., the market value of the media on which the software is recorded and the value of the information contained on the media. Do not include exports and imports of customized software designed to meet the needs of a specific user. This type of software is considered a service and should not be included in trade in goods. Natural gas distribution — Include the value of natural gas that is exported or imported as trade in goods. Do not include as an export or import natural gas that you do not produce or sell at wholesale. The transmitting of natural gas for others via a pipeline without producing or wholesaling the natural gas is considered a service and should not be reported as trade in goods. Additional instructions for exports and imports are on pages 28 and 29 at the back of this form. 113. For this U.S. affiliate, is there a material difference between the "charged" and "shipped" bases in determining what is U.S. trade, whose trade it is, and the timing and ultimate destination or origin of the trade? See the notes at the top of this page for details. 2500 ' 1 n Yes ' 2 Dno 114. On what basis were the trade data in this section prepared? Mark (Xl one. 1 I I "Shipped" basis 2 I I "Charged" basis without adjustments, because there is no material difference between the "charged" and "shipped" bases ^ 3 I I "Charged" basis with adjustments to correct for material differences between the "charged" and "shipped" bases. > If there is a material difference between the "charged" and "shipped" bases and the data have not been filed on the "shipped" basis, or the necessary adjustments have not been made to put "charged" basis data essentially on a "shipped" basis, then BEA will require that the data be refiled. TRADE IN GOODS OF U.S. AFFILIATE WITH ALL FOREIGN PERSONS/ENTITIES 115. TOTAL exports of U.S. affiliates to foreign persons — a. For each column, equals sum of items 116 through 125. b. Column (1) equals sum of items 142 through 169, column (2). c. Column (2) equals sum of items 142 through 169, column (3). d. Column (3) plus column (4) equals sum of items 142 through 169, column (4). *- 25 EXPORTS — Shipped by U.S. affiliate to foreign persons (valued f.a.s. U.S. port) TOTAL (1) Mil. Thous. To foreign parentis! and foreign affiliates of the foreign parentis) (2) 311. Mil. Thous. To foreign affiliates of this U.S. affiliate (3) Bil. Mil. Thous. To all other foreign persons (4) Bil. Mil. Thous, BY PRODUCT — See the "Foreign Trade Classifications" found in Part II of the Guide to Industry and Foreign Trade Classifications for International Surveys, 2002 for a detailed description of the product categories in items 7 16-125 116. Food, live animals, beverages, and tobacco (SITCOandD .^.a-- Combine entries for columns 13) and 141. 117. Crude materials, inedible, except fuels (SITC 2) 118. Mineral fuels, lubricants and related materials (SITC 3) 119. Chemicals and related products (SITC 5) 120. Industrial machinery and equipment (SITC 71-74) 2507 121. Office machines and automatic data processing machines (SITC 75) 122. Telecommunications, sound equipment, and other electrical machinery and parts (SITC 76 and 77) 123. Road vehicles (including air cushion vehicles) and parts (SITC 78) Include all parts that are shipped with the vehicles. Parts that are shipped separately may be in this or another classification. * See NOTE below. 2510 124. Other transport equipment (SITC 79) Include all parts that are shipped with the vehicles. Parts that are shipped separately may be in this or another classification. * See NOTE below. 2511 125. Other products (SITC 4, 6, 8, and 9) — Specify all entries greater than $10 million NOTE: • Some parts that are shipped separately are included in items 123 and 124, or items 134 and 135; however, others are included in product categories appropriate to the type of part based, not on the part's end-use, but rather on the main type of material from which it is made or its general function. Maior examples of such parts are gasoline and diesel engines (include in item 120 or 131); air conditioners for motor vehicles (include in item 120 or 131); tires and tubes (include in item 125 or 136); and lamps, batteries, and electrical parts for engines (include in item 122 or 133). For more complete information, see the "Foreign Trade Classifications" found in Part II of the Guide to Industry and Foreign Trade Classifications for International Surveys, 2002. Page 10 FORM BE-12(LF) (REV. 12/2002) 243 m-JT.tm FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE — Continued ^^^^^ Report all amounts in thousands of U.S. dollars. P Section J — EXPORTS AND IMPORTS OF U.S. AFFILIATE — GOODS ONLY, DO NOT INCLUDE SERVICES — Continued PLEASE READ INSTRUCTIONS ON PAGE 10 AND ON PAGES 28 AND 29 AT THE BACK OF THIS FORM BEFORE COMPLETING THESE ITEMS. TRADE IN GOODS OF U.S. AFFILIATE WITH ALL FOREIGN PERSONS/ENTITIES 126. TOTAL imports of U.S. affiliate from foreign persons — a. For each column, equals sum of items 127 through 136 and sum of items 137 through 140. b. Column (1) equals sum of items M2 through 169, column (5). c. Column (2) equals sum of items 142 through 169, column (6). d. Column (3) plus column (4) equals sum of items 142 through 169, column (7). ►- 2515 IMPORTS — Shipped to U.S. affiliate by foreign persons (valued f.a.s. foreign port) TOTAL (1) By foreign parentis) and foreign affiliates of the foreign parent(s) (2) By foreign affiliates of this U.S. affiliate (3) By all other foreign persons (4) Bil. Mil. Thous. Bil. Mil. Thous. Bil. Mil. Thous. Bil. Mil. Thous. 1 S 2 S 3 $ 4 $ BY PRODUCT — See the "Foreign Trade Classifications" found in Part II of the Guide to Industry and Foreign Trade Classifications for International Surveys, 2002 for a detailed description of the product categories in items 127-136 127. Food, live animals, beverages, and tobacco (SITCOandl) 2515 1 2 Combine entries for columns (3) and (41 3 $ 128. Crude materials, inedible, except fuels (SITC 2) 3517 1 2 3 129. Mineral fuels, lubricants and related materials (SITC 31 2518 1 2 3 130. Chemicals and related products (SITC 5) 2519 1 2 3 131. Industrial machinery and equipment (SITC 71-74) 2520 1 2 3 132. Office machines and automatic data processing machines (SITC 75) 2521 1 2 3 133. Telecommunications, sound equipment, and other electrical machinery and parts (SITC 76 and 77) 2522 1 2 3 134. Road vehicles (including air cushion vehicles) and parts (SITC 78) Include all parts that are shipped with the vehicles. Parts that are shipped separately may be in this or another classification " See NOTE below 2523 1 2 3 135. Other transport equipment (SITC 79) Include all parts that are shipped with the vehicles. Parts that are shipped separately may be in this or another classification. 'See NOTE belon 2524 1 2 3 136. Other products (SITC 4, 6, 8, and 9) — Specify all entries greater than $W million 2525 1 2 3 BY INTENDED USE: 137. Capital equipment and other goods charged by U.S. affiliate to its fixed asset accounts. Item 95 and/or 96 must have an entry. 2529 1 2 3 138. Goods intended for further processing, assembly, or manufacture by this affiliate before resale to others 2530 1 2 3 139. Goods for resale without further processing, assembly, or manufacture by U.S. affiliate 2528 1 2 3 140. Other — Specify major items -^ 2531 1 2 3 Remarks NOTE: 'Some parts that are shipped separately are included in items 123 and 124, or items 134 and 135; however, others are included in product categories appropriate to the type of part based, not on the part's end-use, but rather on the main type of material from which it is made or its general function. Major examples of such parts are gasoline and diesel engines (include in item 120 or 131); air conditioners for motor vehicles (include in item 120 or 131); tires and tubes (include in item 125 or 136); and lamps, batteries, and electrical parts for engines (include in item 122 or 133). For more complete information, see the "Foreign Trade Classifications" found in Part II of the Guide to Industry and Foreign Trade Classifications for International Surveys. 2002. FORM BE-12ILF) (REV. 12/2002) Page 11 244 mnnm financial and operating data of us. affiliate - continued Report all amounts in thousands of U.S. dollars. MERCHANDISE TRADE OF U.S. affiliate with all FOREIGN PERSONS 141. Bring forward amounts from Items 7 75 and 126, pages Wand 7 7, whict), beginning witfi item 142, must equal item 169 plus the sum of all countries with entries. 2600 BEA USE ONLY ID EXPORTS — Shipped by U.S. affiliate to foreign persons Ivaluea f.a.s. U.S. port) IMPORTS — Shipped to U.S. affiliate by foreign persons Ivalued f.a.s. foreign port) TOTAL Equals item 7)5 column ID. 12) To foreign parentis) and foreign affiliates of the foreign parentis) Equals item 1 15 column (2). 13) To all other foreign persons Equals item 1 75, sum of columns 13) and (4). 14) TOTAL Equals item 126, column ID. 15) By foreign parentis) and foreign affiliates of the foreign parentis) Equals item 126, column 12). 16) By all other foreign persons Equals item 126, sum of columns (3) and 14). 17) Bil. Mil, Thous. Bil. Mil. Thous. Bil. Mil. Thous. Bil. Mil. Thous. Bil, Mil. Thous. Bil. Mil. Thous. 1 2 $ 3 $ 4 $ 5 S 6 S 7 $ BY COUNTRY OF ULTIMATE DESTINATION OR ORIGIN — Enter amounts for all individual countries to which exports, or from which imports, were $500,000 or more Country of ultimate destination or origin is defined in paragraph d of the instructions for items 1 13-169 that start on page 28 at the back of this form. 142. Australia 2601 601 2 3 5 6 143 Belgium and Luxembourg 2602 302 2 3 5 6 144. Brazil 2503 202 2 3 5 6 145. Canada 2604 100 2 3 5 6 146. China 2605 650 2 3 5 6 147. France jg^g 307 2 3 5 6 148. Germany 2607 308 2 3 5 6 149. Hong Kong 26O8 611 2 3 5 6 150. Indonesia 2609 613 2 3 5 6 151. Italy 2610 314 2 3 5 6 152. Japan 2611 614 2 3 5 6 153. Korea, Republic of 2612 626 2 3 5 6 154. Malaysia 2613 617 2 3 5 6 155. Mexico 2614 213 2 3 5 6 156. Netherlands 2615 319 2 3 5 6 157. Singapore 2616 625 2 3 5 6 158. Sweden 2617 324 2 3 5 6 159. Switzerland 26I8 325 2 3 5 6 160. Taiwan 2619 628 2 3 5 6 161. Thailand 2620 629 2 3 5 6 162. United Kingdom 2621 327 2 3 5 6 Other individual countries to which exports, or from which imports, were $500,000 or more — Specifii lUse supplemental sheets if necessary, to account for all such countries.) 163. 2622 2 3 5 6 7 164. 2623 2 3 5 6 7 165. 2624 2 3 5 6 7 166. 2625 2 3 5 6 7 167. 2626 2 3 5 6 7 168. 2627 2 3 5 6 7 169. Sum of exports to, or imports from, all countries for which exports or imports were less than $500,000. The sum of this item plus all countries with entries must equal item 1 15, column 11) for exports and item 126, column 11) for imports. 2698 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ Page 12 FORM BE-12ILF) IREV. 12/2002) 245 ■ ;ff:iW FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE — Continued t Section K - SCHEDULE OF EMPLOYMENT AND PROPERTY, PLANT, AND EQUIPMENT, BY LOCATION In column (31, include all employees on the payroll at the end of the fiscal Value land and other property, plant, and equipnnent at historical cost before year that ended in calendar year 2002, including part-time employees. A count allowances for depreciation or depletion, taken at some other date during the reporting period may be given provided it . . ._,.,,, , , , , is a reasonable proxy for the number on the payroll at the end of the fiscal In column (6), include the gross book value of commercial property you own, year Reporting employment (including how to report when employment is and commercial property you use or operate that is leased from others under a subject to unusual variations) is discussed in more detail under the instructions capital lease. Commercial property includes ALL buildings and associated for Items 170-227 on page 29 at the back of this form. land leased or rented to otfiers under operating leases. Commercial property includes apartment buildings, office buildings, hotels, motels, and buildings In column (4), include all employees on the payrolls of operating used for wholesale, retail, and services trades, such as shopping centers, manufacturing plants in the State, Include administrative office and other recreational facilities, department stores, bank buildings, restaurants, public auxiliary employees located at an operating plant and serve only that plant. garages, and automobile service stations. Include the value of land associated Exclude employees on the payrolls of administrative offices or other auxiliary with these buildings. Include office buildings and associated land owned by units reported on page 3, line 34, column 3. industrial companies but NOT located at industrial sites. Exclude furniture and ,_,.,.,..,. _ 1 . J ^ equipment located at commercial property. Exclude property you use for In column (5) include land and other property, plant and equipment agricultural, mining, manufacturing, or other industrial purposes, property you whether carried as investments in fixed asset accounts, or in other balance ^|e ^„ support these activities, such as research labs and warehouses, and sheet accounts. Include land held for resale, held for investment purposes, and offing buildings located at industrial sites. Also exclude educational buildings, all other land owned Include land and other property plant, and equipment on hospital and mstitutional buildings, and all undeveloped land, capital lease from others, but exclude that on capital lease to others. Include '^ ^ '^ property you own that you lease to others under operating leases. LOCATION Location is defined on page 29 at the back of this form. 170. TOTAL for each column must equal sum of items 171 through 227 2700 State code (2) Number of employees at the end of FY 2002 — 7ofa/ must equal item 37. column 131- (3) Tfie portion of employees in column (3f tfiat are manufacturing employees (4) Gross book value (fiistorical cost) of all land and ottier property, plant, and equipment wfterever carried on balance sfieet, FY 2002 closing balance Must equal item 89. columr^ (2f. and item 102, column (1). (5) The portion of column (5) that is commercial property (6) Number Number Bil, Mil. Thous. Bil. Mil. Thous. 3 5$ ^$ 171. Alabama 2701 2 01 3 5 6 172. Alaska 2702 ' 02 3 5 6 173. Arizona 2703 2 04 3 5 6 174. Arkansas 2704 2 05 3 5 6 175. California 2705 2 06 3 5 6 176. Colorado 2706 ' 08 3 5 6 177. Connecticut 2707 2 09 3 5 6 178. Delaware 2708 2 10 3 5 6 179. Florida 2709 2 12 3 5 6 180. Georgia 2710 2 13 3 5 6 181. Hawaii 2711 2 15 3 5 6 182. Idaho 2712 2 16 3 5 6 183. Illinois 2713 2 17 3 5 6 184. Indiana 2714 2 18 3 5 6 185. Iowa 2715 2 19 3 5 6 186. Kansas 2716 2 20 3 5 6 187. Kentucky 2717 ' 21 3 5 6 188. Louisiana 27ie 2 22 3 5 6 189. Maine 2719 2 23 3 5 6 190. Maryland 2720 2 24 3 5 6 191. Massachusetts 2721 2 25 3 5 6 192. Michigan 2722 2 26 3 5 6 193. Minnesota 2723 ^ 27 3 5 6 194. Mississippi 2724 2 28 3 5 6 195. Missouri 2725 2 29 3 5 6 196. Montana 2726 2 30 3 5 6 197. Nebraska 2727 ' 31 3 5 6 198. Nevada 2728 ' 32 3 5 6 199. New Hampshire 2729 ' 33 3 5 e 200. New Jersey 2730 ' 34 3 5 6 201. New Mexico 2731 ' 35 3 5 6 202. New York 2732 2 36 3 5 6 203. North Carolina 2733 2 37 3 5 6 204. North Dakota 2734 2 38 3 5 6 205. Ohio 2735 2 39 3 4 5 6 206. Oklahoma 2736 2 40 3 5 6 207. Oregon 2737 2 41 3 5 6 208. Pennsylvania 2738 ' 42 3 5 6 209. Rhode Island 2739 2 44 3 5 6 210. South Carolina 2740 ' 45 3 5 6 211. South Dakota 2741 ' 46 3 5 6 212. Tennessee 2742 ' 47 3 5 6 213. Texas 2743 ' 48 3 5 6 214. Utah 2744 ' 49 3 5 6 215. Vermont 2745 ' 50 3 5 6 216. Virginia 2746 2 51 3 5 6 217. Washington 2747 ' 53 3 5 6 218. West Virginia 2748 ' 54 3 5 e 219. Wisconsin 2749 2 55 3 5 6 220. Wyoming 2750 2 56 3 5 6 221. District of Columbia 2751 2 11 3 5 6 222. Puerto Rico 2752 ' 43 3 5 6 223. Virgin Islands 2753 ' 52 3 5 6 224. U.S. offshore oil and gas sites 2756 2 65 3 5 6 225. Other U.S. areas - includes Guam, American Samoa, and all other territories and possessions not separately listed 2754 2 60 3 5 6 226. Foreign — See instruction 226 on page 29 at the back of this form. 2758 2 70 3 4 5 6 227. Other property, plant and equip- ment — See instruction 227 on page 29 at the back of this form. 2759 2 71 5 FORM BE 12(LF) (REV. 12/2002) Page 13 246 INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT File a separate Part III, to report each direct and indirect voting interest iieid by a foreign parent, in the affiliate, at anytime during the affiliate's fiscal year that ended in calendar year 2002. Use this Part III to report the foreign parent with the largest direct voting interest at year end. If a foreign parent holds both a direct and an indirect interest, in the affiliate, file a separate Part III to report each voting interest. Use photocopies of this Part III to report all additional direct or indirect voting interests, held by foreign parents, in the affiliate. At the top of each Part III, enter the name of the U.S. affiliate shown in item 1 and primary employer identification number shown in item 4, of this Form BE-12(LF). Do not duplicate positions in, or transactions with, the U.S. affiliate when more than one Part III is filed. Section A — IDENTIFICATION OF FOREIGN PARENT AND ULTIMATE BENEFICIAL OWNER 228. Number of Part Ill's filed by the U.S. affiliate — If there is only one, enter "1: BEA USE ONLY Control number 229. Name of foreign parent reported in this Part III. 230. For the foreign parent named in item 229, this Part III is being used to report — Mark IXI one 3012 1 1 I a direct interest in the U.S. affiliate (as reported in item 13) 3013 1 1 I an indirect interest in the U.S. affiliate (as reported in item 14) 231. If item 230a is marked — Give percent of — a. voting interest owned . b. equity interest owned . Close FY 2002 (1) Close FY 2001 (2) "Voting interest" and "equity interest" are defined in instructions 13-17 on page 27 at the back of this form. If the U.S. affiliate is a partnership or Limited Liability Company also see instructions 7b and 7c on pages 26 and 27 at the back of this form. NOTE — Sum of item 231a, columns 1 and 2 of all Part Ill's must equal item 13, columns 1 and 2. 232. Country in which foreign parent named in item 229 — a. is incorporated or organized, if a business enterprise, or is a resident, if an individual b. is located, if a business enterprise and the country is different from that in item 232a BEA USE ONLY 3016 1 3017 1 233. Industry code of foreign parent named in item 229 — For a foreign parent that is a business enterprise, determine the industry code based on the primary activity of the single entity named as the foreign parent in item 229. DO NOT determine the industry code based on the foreign parent's world-wide consolidated sales. For an individual, enter code "05." Secure industry code from list on page 1 7. NOTE ► Information regarding the ultimate beneficial owner (UBO) in items 234 through 238 is essential; failure to properly complete these items will constitute an incomplete report, which will be returned for completion. Identifying the UBO as "bearer shares" is not an acceptable response. The U.S. affiliate must pursue the identification of the UBO through the managing directors of the entity that issued the bearer shares, or any other officials or intermediaries. 234. Is the foreign parent named in item 229 the UBO? (Foreign parent and UBO are defined in items ILL and ILQ. on page 7 of the Instruction Booklet.) 1 n Yes — Skip to item 238. 2 1 ^ No — Continue with item 235. 235. Is the UBO an individual, or an associated group of individuals? (Associated group is defined in item II. D. on page 6 of the Instruction Booklet.) 1 1 I Yes — A name need not be given in item 236, but item 237 must be completed for the individual(s). 2 1 ^ No — Continue with item 236. 236. Name of UBO 237. Country of UBO named in item 236, or country of the individual(s) if the answer to item 235 was "Yes." BEA USE ONLY 3022 n 238. Industry code of UBO — For a UBO that IS a business enterprise, determine the industry code for the primary activity of the UBO based on the UBO's world-wide consolidated sales. For an individual, enter code "05. " -Secure industry code from list on page 7 7. Remarks Page 14 FORM BE-12(LF) (REV. 12/2002) 247 INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT — Continued NOTE ► 1. Amounts reported in sections 8, C, D, and E must be for the fully consolidated U.S. affiliate. The consolidation rules are found on page 25 at the back of this form. 2. If item 230a is marked, complete all items 239 through 261. If item 230b is marked, report any direct transactions or positions between the U.S. affiliate and the foreign parent in items 239, 240, and 252 through 256. Do not duplicate data reported on other Part Ill's. F Section B — INTERCOMPANY BALANCES BETWEEN THE U.S. AFFILIATE AND THE FOREIGN PARENT NAMED IN ITEM 229, ACCORDING TO THE BOOKS OF THE U.S. AFFILIATE See additional instructions for 239 and 240 on page 29 at the back of this form. 239. Liabilities owed by U.S. affiliate to foreign parent named in item 229 — current and long-term 3056 BALANCE Close FY 2002 ID Bil. Mil. Thous. Dols, Close FY 2001 (21 Bil. Mil. Thous. Dols. 240. Receivables due to U.S. affiliate from foreign parent named in item 229 — current and long-term. Include certificates of deposit and other deposits of the U.S. affiliate (that would otherwise be included in cash on your balance sheet) held by the foreign parent. See note in item 42 on page 5. 3057 ► Section C — CHANGES IN EQUITY HOLDINGS IN THE U.S. AFFILIATE BY THE FOREIGN PARENT NAMED IN ITEM 229 Report transactions, during the fiscal year that ended in calendar year 2002, by the foreign parent named in item 229 that changed its equity holdings in the U.S. affiliate. Exclude changes caused by carrying net income to the equity account, the payment of stock or cash dividends (other than liquidating dividends), or the distribution of earnings during the period. Exclude the effect of treasury stock transactions with persons other than the foreign parent and reorganizations in capital structure that do not affect total equity. REPORT ALL AMOUNTS AT THE TRANSACTION VALUE, i.e., the value of the consideration given or received by the foreign parent. . TRANSACTIONS BETWEEN FOREIGN PARENT AND U.S. AFFILIATE See additional instructions on page 29 at the back of this form. 241. Increase in equity interest Amount (1) Bil. Mil. Thous. Dols. 242. Decrease in equity interest — Include liquidating dividends. • TRANSACTIONS BETWEEN FOREIGN PARENT AND A PERSON OTHER THAN U.S. AFFILIATE Acquisition by foreign parent of equity interest in U.S. affiliate from — 243. U.S. persons other than the U.S. affiliate 244. All foreign persons Sale by foreign parent of equity interest in U.S. affiliate to — 245. U.S. persons other than the U.S. affiliate 246. All foreign persons 247. TOTAL — Equals sum of items 241, 243. and 244, minus sum of items 242, 245, and 246 • For item 247, enter the amounts by which the transaction value - 248. exceeds the value carried on the books of the U.S. affiliate For acquisition (1) For liquidation or sale (2) Bil. Mil. Thous. Dols. Bil. Mil. Thous. Dols. 249. is less than the value carried on the books of the U.S. affiliate Remarks FORM BE-12(LF) (REV. 12/2002) Page 15 248 pTIfflTW INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT - Continued ^ Section D - PAYMENTS AND RECEIPTS OF DIVIDENDS, DISTRIBUTED EARNINGS, INTEREST. ROYALTIES ^ AND LICENSE FEES, AND OTHER SERVICES BETWEEN U.S. AFFILIATE AND FOREIGN PARENT Enter amounts received, paid, or entered into intercompany accounts, whichever occurred first. Include amounts for which payment was made in kind. For an item entered into an intercompany account prior to the reporting period, do not report any subsequent settlement of the account in the items below. Instead, reflect such settlements only as a reduction in an intercompany account (items 239 and 240). • INCORPORATED U,S, AFFILIATE 250. Dividends — On common and preferred stock, excluding stock and liquidating dividends 3074 Payments or credits by U.S. affiliate to foreign parent Receipts by or credits to U.S. affiliate from foreign parent Net payment (after deduction of U.S. tax withheld) (1) U.S. tax withheld (2) Net receipt (after deduction of foreign tax withheld) (3) Foreign tax withheld (4) Bil. Mil. Thous. |DoIs. Bil. Mil. Thous. [DoIs. Bil. Mil. Thous. |DoIs. Bil. Mil. Thous. JDols. 1 , $ ' 2 1 $ 1 • UNINCORPORATED U,S, AFFILIATE 251. Distributed earnings 3075 1 ' 2 ' • ALL U.S. AFFILIATES 252. Interest — Include interest on capital leases. 3075 1 1 2 1 3 1 $ 1 4 1 $ 1 253. Royalties, license fees, and other fees for the use or sale of intangible pro- perty. See instructions for item 253 on page 29 at the back of this form, 3077 1 ' 2 1 3 1 4 1 254. Charges for use of tangible property Include rentals for operating leases of one year or less and net rent on operating leases of more than one year. Net rent is equivalent to the total lease payment less the return of capital IdepreciationI component. Exclude film and television tape rentals. 3078 1 1 2 j 3 1 4 1 255. Film and television tape rentals. See instructions tor item 253 on page 29 at the back of this form. 3079 1 1 2 1 3 1 4 256. Allocated expenses and sales of services — Must equal sum of a. through g. below. Include allocated expenses or reimbursements for management, profes- sional, technical, or other services that normally would be included in "other income" in the income statement of the provider of the service (item 62 of this form for the U.S. affiliate) and payments or receipts for services that are separately billed and that would normally be included in sales or gross operating revenues of the seller of the services (item 59 of this form for the U.S. affiliate). Telecommunications carriers should not include payments and receipts for message telephone services. Report data for these services on Form BE-20 (Benchmark) or BE-22 (Annual) Survey of Selected Services Transactions with Unaffiliated Foreign Persons. 3033 1 1 $ 1 2 1 $ 1 3 1 $ 1 4 1 $ 1 Allocated expenses and sales of services by type — See instructions for item 256 starting on page 29 at the back of this form. a. Insurance services — To avoid duplication with other BEA surveys report ONLY the following: In column 1 report payments by the U.S. affiliate of premiums for the purchase of primary insurance from the foreign parent. In column 3 report receipts from the foreign parent by the U.S. affiliate for losses covered by insurance reported in column (1), 3100 1 2 3 4 b. Financial services 3101 2 1 3 1 4 1 c. Transportation 3102 2 ' 3 1 4 1 d. Computer and information services 3103 2 ' 3 ' 4 ' e. Management, consulting, and public relations services 3107 2 1 3 ' 4 ' f. Research, development, and testing services 31O8 2 1 3 1 4 . g. Other services — Include payments and receipts for other services that are separately billed and that would normally be included in sales or gross operating revenues of the seller of the service (item 59 on this form for the U.S. affiliate) and allocated expenses or reimbursements for management, professional, technical, public relations, or other services that normally would be included in "other income" in the income statement of the provider of the service (item 62 on this form for the U,S, affiliate), 3,05 1 $ ' 2 $ ' 3 $ ' 4 $ ' 257. BEA USE ONLY 3106 1 4 1 ^ Section E - FOREIGN PARENTS EQUITY IN U.S. AFFILIATES NET INCOME. CERTAIN REALIZED AND UNREALIZED GAINS (LOSSES). AND THE CHANGE IN ALL OTHER COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Based on the foreign parent's direct equity in the U.S. affiliate during FY 2002. enter — 258. Foreign parent's direct equity in U.S. affiliate's net income (loss! after provision for U.S. Federal, State, and local income taxes — Enter the foreign parent's share of item 68. 3085 Amount (11 Bil. Mil. Thous. |Dols. 1 1 $ , 259. Foreign parent's share of certain realized and unrealized gains (losses! included in net income — Enter the foreign parent's share of item 61. 3086 1 1 260. Foreign parent's share of U.S. Federal, State, and local income taxes that are taxes on certain realized and unrealized gains (losses) included in net income — f nter the portion of item 65 that is taxes on item 259. 3087 1 ' 261. Foreign parent's share of the change during fiscal year 2002 in the accumulated other comprehensive income (loss) balance (excluding the translation adjustment component) reported on line 56b (all other components) of the balance sheet. 3088 1 1 $ 1 Page 16 FORM BE-12(LF) (REV. 12/2002) 249 FOREIGN PARENT AND UBO INDUSTRY CODES 01 Government and government-owned or -sponsored enterprise, or quasi-government organization or agency 02 Pension fund — Government run 03 Pension fund — Privately run 04 Estate, trust, or nonprofit organization (that part of 5252 tliat is estates and trusts) 05 Individual Private business enterprise, investment organization, or group engaged in: 06 Insurance (2002 ISI codes 5242, 5243, 52491 07 Agriculture, forestry, fishing, and hunting (2002 ISI codes 1110-1140) 08 Mining (2002 ISI codes 2111-2127) 09 Construction (2002 ISI codes 2360-2380) 10 Transportation and warehousing (2002 ISI codes 4810-4939) 11 Utilities (2002 ISI codes 2211-2213) 12 Wholesale and retail trade (2002 ISI codes 4231-4251 and 4410-4540) 13 Banking, including bank holding companies (2002 ISI codes 5221 and 5229) 14 Holding companies, excluding bank holding companies (2002 ISI codes 5512 and 5513) 15 Other finance (2002 ISI codes 5223, 5224, 5231-5238, that part of 5252 that is not estates and trusts, and 5331) 16 Real estate (2002 ISI code 5310) 17 Information (2002 ISI codes 5111-5191) 18 Professional, scientific, and technical services (2002 ISI codes 541 1-5419) 19 Other services (2002 ISI codes 1150, 2132, 2133, 5321, 5329, and 5611-8130) Manufacturing, including fabricating, assembling, and processing of goods: 20 Food (2002 ISI codes 3111-3119) 21 Beverages and tobacco products (2002 ISI codes 3121 and 3122) 22 Pharmaceuticals and medicine (2002 ISI code 3254) 23 Other chemicals (2002 ISI codes 3251-3259, except 3254) 24 Nonmetallic mineral products (2002 ISI codes 3271-3279) 25 Primary and fabricated metal products (2002 ISI codes 3311-3329) 26 Computer and electronic products (2002 ISI codes 3341-3346) 27 Machinery manufacturing (2002 ISI codes 3331-3339) 28 Electrical equipment, appliances, and components (2002 ISI codes 3351-3359) 29 Motor vehicles and parts (2002 ISI codes 3361-3363) 30 Other transportation equipment (2002 ISI codes 3364-3369) 31 Other manufacturing (2002 ISI codes 3130-3231, 3261, 3262, 3370-3399) 32 Petroleum manufacturing, including integrated petroleum and petroleum refining without extraction (2002 ISI codes 3242-3244) FORM BE-12(LF) (REV. 12/2002) Page 17 250 m-JTAi^M DIRECT TRANSACTIONS OR ACCOUNTS BETWEEN U.S. AFFILIATE AND FOREIGN AFFILIATES OF THE FOREIGN PARENTIS) (FAFPI Report all direct transactions between the U.S. affiliate and FAFP. Do not include any direct transactions, accounts, or balances between the U.S. affiliate and the foreign parent — they must be reported in Part III. Do not net payables against receivables. In Section A, report liabilities and payments to, and, in Section B, report receivables and receipts due from, FAFP by country. Please continue with instructions at the top of the next page before completing items 262 through 290. 262. Does the U.S. affiliate liave direct transactions with foreign affiliates of any foreign parent? 4100 1 D Yes - Complete the rest of Part IV- Do not duplicate amounts reported in Part III — See additional instructions for part IV on page 30 at the back of this form. The instructions on pages 16. 29 and 30 for Part III. Section D. items 252 through 256g also apply to columns (4) through (10) However, for Part IV the instructions apply to the FAFP NOT the foreign parent 2 D No - SKIP the rest of Part IV Country of foreign affiliate of foreign parent Enter amounts of $2,000,000.00 or greater for all individual countries. BEA USE ONLY ID Current and long-term liabilities or receivables Interest, including interest on capital leases (after deduction of U.S. tax withheld) 14) Close FY 2002 (2) Close FY 2001 (3) k Section A - U.S. AFFILIATES '^ LIABILITIES AND PAYMENTS TO FAFP 263. Canada Key code 100 Liabilities of U.S. affiliate TO FAFP Paid/Accrued Bil, Mil. Thous. ' Dels. Bil. Mil, Thous. Dols. Bil. Mil. Thous. Dols. A 4101 2 1 $ 1 3 1 $ 1 4 1 $ 1 264. United Kingdom 4102 327 2 ' 3 ' 4 ' 265. Netherlands 4103 319 2 1 3 1 4 1 266. Japan 4104 614 2 1 3 1 4 { 267. Other countries — Specify 4105 2 3 4 268. 4106 2 1 3 i 4 ' 269. 4107 2 1 3 1 4 1 270. 4108 2 ' 3 ' 4 ' 271. 4109 2 1 3 1 4 1 272. 4110 2 1 3 1 4 1 273. 4111 2 3 ' 4 ' 274. 4112 2 1 3 1 4 1 275. Unallocated by country — Sum of amounts for each countni- for which each entry is less than $2,000,000.00. 4113 2 1 3 1 4 1 276. TOTAL - Sum of items 263 4149 2 1 $ ' 3 1 1 $ 1 4 1 $ 1 k Section B - U.S. AFFILIATES '^ RECEIVABLES AND RECEIPTS FROIM FAFP 277. Canada 4150 100 Receivables of U.S. affiliate FROM FAFP NOTE — Include certificates of deposit and other deposits of the U.S. affiliate held by the FAFP. Interest received/accrued (after deduction of foreign tax withheld) Bil. Mil. Thous. j Dols. Bil. Mil. Thous. 1 Dols. Bil. Mil. Thous. ' Dols. 2 1 $ ' 3 1 $ 1 4 1 $ 1 278. United Kingdom 4151 327 2 3 4 ' 279. Netherlands 4152 319 3 1 4 1 280. Japan 4153 614 2 1 3 1 4 1 Other countries — Specify 281. 4154 2 3 4 ' 282. 4155 2 3 4 ' 283. 4156 2 ' 3 ' 4 1 284. 4157 2 1 3 1 4 I 285. 4158 2 1 3 1 4 ' 286. 4159 2 ' 3 ' 4 1 287. 4160 2 1 3 1 4 1 288. 4161 2 1 3 1 4 289. Unallocated by country — Sum of amounts for each country for which each entry is less than $2,000,000.00. 4162 2 1 3 1 4 290. TOTAL — Sum of items 277 4199 2 ' $ 3 ' $ 4 i $ ' Page IS FORM BE-12(LF) (REV. 12/2002) 251 m-JTAi^M DIRECT TRANSACTIONS OR ACCOUNTS BETWEEN U.S. AFFILIATE AND FOREIGN AFFILIATES OF THE FOREIGN PARENTIS) (FAFP) — Continued Enter only one foreign country per line. If more lines than provided are needed in order to list all countries, use additional copied Part IV's and, at the top of the additional Part IV, identify each with the name of the U.S. affiliate shown in item 1 and the primary Employer Identification Number, shown in item 4, of this Form BE-12(LF). An item needs to be reported by country only if it is $2,000,000.00 or greater for that country. In column 9 enter the service number, from the chart on page 20, which represents the predominant type of service reported in column 8. In column 10 enter the percentage, to the nearest whole percent, of the total value in column 8 accounted for by the type of service specified in column 9. ^1 NT A Report all amounts in thousands of U.S. dollars, as illustrated. EXAMPLE: If figure is $1,125,628,000.00 - Report as Bil. Mil. Thous. ' Dols. IMPORTA 1 125 628 ' 1 Item No. Key cofle Royalties, license fees, and other fees for the use or sale of intangible property (5) Charges for use of tangible property (6) Film and television tape rentals (7) Allocated expenses and sales of services (8) Service number (9) Percent to the nearest whole number (10) 263. B 4101 Payments or accruals, whichever occurred first, TO FAFP (after deduction of U.S. tax withheld) | Bil. Mil. Thous. 'Dols. Bil. Mil, Thous. Dols, Bil. Mil. Thous. ' Dols Bil. Mil. Thous. 'Dols. 1 5 $ 1 6 1 $ 1 $ 1 8 1 $ 1 9 10 ' % 264. 4102 5 1 6 ' 8 1 9 10 1 % 265. 4103 5 1 6 1 8 1 9 10 1 1% 266. 4104 5 6 1 8 9 10 1% 267. 4105 5 1 6 ' 8 1 9 10 1 % 268. 4106 5 1 6 1 8 1 9 10 1 1% 269. 4107 5 6 1 8 9 10 ' 1% 270. 4108 5 1 6 8 1 9 10 1 1% 271. 4109 5 1 6 1 8 1 9 10 1 1% 272. 4110 5 6 1 8 9 10 % 273. 4111 5 ' 6 8 ' 9 10 1 % 274. 4112 5 1 6 1 8 1 9 10 1 1% 275. 4113 5 1 6 1 S 1 9 10 1 % 276. 4149 5 1 $ 6 1 S 1 $ 8 1 $ 277. 4150 Receipts or accruals, whichever occurred first, FROM FAFP (after deduction of foreign tax withheld) Bil. Mil. Thous.|Dols. Bil. Mil. Thous. , Dols. Bil. Mil. Thous. 1 Dols. Bil. Mil, Thous. 1 Dols. 5 [ $ ' 6 1 $ 8 1 $ 9 10 1 1% 278. 4151 5 6 ' 1 8 9 10 ' 1% 279. 4152 5 1 6 1 8 1 9 10 1 % 280. 4153 5 1 6 1 8 1 9 10 1 1% 281. 4154 5 1 6 8 9 10 ' 1% 282. 4155 5 6 8 9 10 ' 1% 283. 4156 5 ' 6 ' 8 ' 9 10 1 1% 284. 4157 5 1 6 1 8 1 9 10 1 1% 285. 4158 5 1 6 1 8 1 9 10 ' % 286. 4159 5 ' 6 ' 8 ' 9 10 1 % 287. 4180 5 1 6 1 8 1 9 10 1 288. 4161 5 1 6 1 8 1 9 10 ' 1% 289. 4162 5 6 8 1 9 10 ' 1% 290. 4199 5 ' $ 6 ' $ $ 8 ' $ FORM BE-12{LF) (REV. 12/20021 Page 19 252 DIRECT TRANSACTIONS OR ACCOUNTS BETWEEN U.S. AFFILIATE AND FOREIGN AFFILIATES OF THE FOREIGN PARENT(S) (FAFP) — Continued See item 256 on page 16 and the instructions for item 256 starting on page 29 at the bacl< of this form for a complete description of each service. However, for Part IV the instructions apply to the FAFP NOT the foreign parent. Sers/ice number Type of service 1 Insurance 2 Financial 3 Transportation 4 Computer and information 5 Management, consulting, and public relations 6 Research, development, and testing 7 All other Remarks — Please use this space for any explanations that nnay be essential in understanding your reported data. Page 20 FORM BE-12(LF) (REV, 12/2002) 253 < Oo Q.CC QQD ]fi c o < Q. O Si -J D u. < ^^ (9 K o Q. m K ir> O -c 2 -C o ^ UJ s ^" m CD o o.^ • 5g < o Q. E CO "5. 2 TO 3 o CL O (/i p fo a> o a> °^ ^ = ^ rr -I o s s - o ^ — t/» < => a (/> a =i 3 ^^ to T^ 03 (D •- E E o I ^ o £ ' Q. >- O I ^ -'-^ I co< ^ fD . 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Qj t=-o E o §o o9= .^-Q ■s^ i^~ TO fo o.^ TO ^ — i^ o — CO a^ =) t^ o '^ -oo i Q. >- a. —J 3 C/) UJ — U) — u. 3 _l < tM LU CO Ul CO En fs ■^ tc l£> r~- CO CT> § s s m CM ID (O ID lO ID ID 10 ID Page 24 FORM BE-12{LF) (REV. 12/2002) 257 BENCHMARK SURVEY OF FOREIGN DIRECT INVESTMENT IN THE UNITED STATES 2002 FORM BE-12(LF) ADDITIONAL INSTRUCTIONS NOTE: Instructions are cross referenced by number to the items located on pages 1 to 24 of this form. Authority — This survey is being conducted pursuant to the International Investment and Trade in Services Survey Act (P.L. 94-472, 90 Stat. 2059, 22 U.S.C. 3101-3108, as amended, hereinafter "the Act'), and the filing of reports is MANDATORY pursuant to Section 5(b)(2) of the Act (22 U.S.C. 3104). Penalties — Whoever fails to report shall be subject to a civil penalty of not less than $2,500, and not more than $25,000, and to injunctive relief commanding such person to comply, or both. Whoever willfully fails to report shall be fined not more than $10,000 and, if an individual, may be imprisoned for not more than one year, or both. Any officer, director, employee, or agent of any corporation who knowingly participates in such violations, upon conviction, may be punished by a like fine, imprisonment or both (22 U.S.C. 3105). Notwithstanding any other provision of the law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the Paperwork Reduction Act, unless that collection of information displays a currently valid OMB Control Number. PART I — IDENTIFICATION OF U.S. AFFILIATE 3. Consolidation Rules Consolidated reporting by the U.S. affiliate — A U.S. affiliate must file on a fully consolidated domestic U.S. basis, including in the full consolidation all nonbank U.S. business enterprises in which it directly or indirectly owns more than 50 percent of the outstanding voting interest. The fully consolidated entity is considered one U.S. affiliate. A foreign person holding real estate investments that are reportable on the BE-12 must aggregate all such holdings. See Instruction Booklet, page 6, instruction I.C. and page 9, instruction IV. D. for details. Do not prepare your Form BE-12 using the proportionate consolidation method. Except as noted in b. through e. below, consolidate all majority owned U.S. affiliates into your Form BE-12. Unless the exceptions discussed in items a, b, c, or e below apply, any deviation from these consolidation rules must be approved in writing each year by BEA. The following exceptions apply to the consolidation rules. If a U.S. affiliate is not consolidated into its U.S. parent's Form BE-12, then it must be listed on the Supplement B of its parent's Form BE-12 and must file its own Form BE-12(LF), BE-12(SF), or BE-12 BANK. a. DO NOT CONSOLIDATE FOREIGN SUBSIDIARIES, BRANCHES, OPERATIONS OR INVESTMENTS NO MATTER WHAT THE PERCENTAGE OWNERSHIP. Report foreign holdings owned 20 percent or more (including those that are majority-owned) using the equity method of accounting. DO NOT eliminate intercompany accounts for investments reported using the equity method. You may report immaterial foreign investments using the cost method of accounting if this treatment is consistent with your normal reporting practice. Report foreign holdings owned less than 20 percent using the cost method of accounting. DO NOT report any foreign holdings of the U.S. affiliate on the Supplement B of the Form BE-12(LF). b. Do not consolidate banking activities. If the nonbank U.S. affiliate reporting on Form BE-12(LF) has a direct or indirect ownership interest in a bank, bank holding company (BHC), or any other banking activity, such as a U.S. wholesale or limited purpose bank, D(5 NOT consolidate those banking activities into the Form BE-12(LF). Instead, report the bank, BHC, including all of its subsidiaries or units, and any other banking activities, on a Form BE-12 BANK. Include on Form BE-12(LF) any banking operations owned 20 percent or more (including those that are majority-owned) using the equity method of accounting. DO NOT eliminate intercompany accounts for banking operations. Report immaterial banking operations and any banking operations owned less than 20 percent using the cost method of accounting if this treatment is consistent with your normal reporting practice. c. Special consolidation rules apply to U.S. affiliates that have an ownership interest in a U.S. limited partnership and to U.S. affiliates that are limited partnerships. See instruction 7b(2j on page 26 for details. d. You may file a separate BE-12 report for a U.S. affiliate that is owned more than 50 percent by another U.S. affiliate if the "owned" U.S. affiliate is not normally fully consolidated because control by the "owning" U.S. affiliate is temporary. To file separately you must request in writing and receive written permission from BEA each year. Include such affiliates, if not consolidated, on Form BE-12(LF) using the equity method of accounting. DO NOT eliminate intercompany accounts for such affiliates not consolidated. In accordance with FAS 94, consolidation of majority-owned subsidiaries is required even if their operations are not homogeneous with those of the U.S. affiliate that owns them. e. A U.S. affiliate in which a direct ownership interest and an indirect ownership interest are held by different foreign persons should not be fully consolidated into another U.S. affiliate, but must complete and file its own Form BE-12(LF), BE-12(SF), or BE-12 BANK. (See diagram below.) 1 Foreign person B | | Foreign person A | Foreign U.S. ♦ 100% 30% U.S. affiliate X 1 60% U.S. affiliate Y )elow, U.S. afflliat D U.S. affiliate X b >hip by foreign pe Except as described t fully consolidated int percent direct owners 3 Y may not be ecause of the 30 son B. Reflect the indirect ownership interest, even if more than 50 percent, on the balance sheet and income statement of the owning U.S. affiliate's Form BE-12(LF) on an equity basis. For example, in the situation shown in the diagram above, U.S. affiliate X must treat its 60 percent ownership interest in U.S. affiliate Y as an equity investment. If both the direct and indirect lines of ownership are held by the same foreign person, the affiliate may be fully consoli- dated and the minority interest not held by the foreign parent either directly or indirectly must be eliminated. Thus, if in the diagram above, U.S. affiliate Y is 30 percent directly owned by Foreign person A instead of Foreign person B, then U.S. affiliate Y may be fully consolidated into U.S. affiliate X. In this example, the 10 percent minority interest that is not owned (directly or indirectly) by Foreign person A is eliminated. Include this 10 percent minority interest in the equity of affiliate Y as part of "other noncurrent liabilities"(item 51) on the balance sheet, and include the 10 percent minority interest in the profits or loss of affiliate Y as part of "other costs and expenses" (item 66) on the income statement. 5. Reporting period — The report covers the U.S. affiliate's 20(32 fiscal year. The affiliate's 2002 fiscal year is defined as the affiliate's financial reporting year that has an ending date in calendar year 2002. Special Circumstances: a. 52/53 week fiscal year— Affiliates having a "52/53 week" fiscal year that ends within the first week of January 2003 are considered to have a 2002 fiscal year and should report December 31, 2002 as their 2002 fiscal year end. b. U.S. affiliates without a financial reporting year — If a U.S. affiliate does not have a financial reporting year, its fiscal year is deemed to be the same as calendar year 2002. c. Change in fiscal year (1) New fiscal year ends in calendar year 2002 — A U.S. affiliate that changed the ending date of its financial reporting year must file a 2002 Form BE-12 that covers the 12 month period prior to the new fiscal year end date. The following example illustrates the reporting requirements. Example 1 . U.S. affiliate A had a June 30, 2001 fiscal year end date but changed its 2002 fiscal year end date to March 31. Affiliate A must file a 2002 Form BE-12 covering the 12 month period from April 1, 2001 to March 31, 2002. The ending balance sheet amounts reported in column (1) of items 42 through 58 must be the correct balances as of March 31, 2002. The beginning balance sheet amounts reported in column (2) must be the unrestated ending balances as of June 30, 2001. To reconcile the beginning and ending retained earnings balances (or, if retained earnings is not shown as a separate account, the beginning and ending owners' equity balances) affiliate A must include an adjusting entry in item 70. To reconcile the beginning and ending net property, plant and equipment balances, affiliate A must include an adjusting entry in item 92. BE-12(LF) (REV. 12/2002) Page 25 258 PART I — IDENTIFICATION OF U.S. AFFILIATE — Continued (21 No fiscal year ending in calendar year 2002 — If a change in fiscal year results in a U.S. affiliate not having a fiscal year that ended in calendar 2002, the affiliate must file a 2002 Form BE-12 that covers 12 months of data. The following example illustrates the reporting requirements. Example 2 . U.S. affiliate B had a December 31, 2001 fiscal year end date but changed its next fiscal year end date to March 31. Instead of having a short fiscal year ending in 2002, affiliate B decides to have a 15 month fiscal year running from January 1, 2002 to March 31, 2003. Affiliate B must file a 2002 Form BE-12 covering a 12 month period ending in calendar year 2002, such as the period from April 1, 2001 to March 31, 2002. In this example, the ending balance sheet amounts reported in column (1) of items 42 through 58 must be the correct balances as of March 31, 2002. The beginning balance sheet amounts reported in column (2) must be the unrestated ending balances as of December 31, 2001. To reconcile the beginning and ending retained earnings balances (or, if retained earnings is not shown as a separate account, the beginning and ending owners' equity balances) affiliate B must include an adjusting entry in item 70. To reconcile the beginning and ending net property, plant and equipment balances, affiliate B must include an adjusting entry in item 92. For 2003, assuming no further changes in the fiscal year end date occur, affiliate B must file a Form BE-15 report covering the 12 month period from April 1, 2002 to March 31, 2003. 6. Reporting requirements for a U.S. business enterprise that became a U.S. affiliate during fiscal year 2002 — a. A U.S. business enterprise that was newly established in fiscal year 2002 must report data starting with the establishment date up to, and ending on, the last day of its fiscal year that ended in calendar year 2002. DO NOT estimate data for a full year of operations if the first fiscal year is less than 12 months. b. A U.S. business enterprise existing before fiscal year 2002 that became a U.S. affiliate in fiscal year 2002 must report data for all items for a full 12 months of operations. 7. Form of organization of U.S. affiliate - unincorporated U.S. affiliates ' Reporting by a. Directly owned vs. indirectly owned (1) DIRECTLY OWNED — Each unincorporated U.S. affiliate, including a branch, that is directly owned 10 percent or more by a foreign person must file a separate Form BE-12. Do not combine two or more such directly owned U.S. affiliates on a single Form BE-12. The only exception is for U.S. affiliates that are real estate investments (see Instruction Booklet, page 6, instruction I.C, and page 9, instruction IV. D,). (21 INDIRECTLY OWNED — An indirectly owned unincor- porated U.S. affiliate owned more than 50 percent by another U.S. affiliate must normally be fully consolidated on the report with the U.S. affiliate that holds the ownership interest in it. An indirectly owned unincorporated U.S. affiliate owned 50 percent or less by another U.S. affiliate must normally file a separate report. b. Partnerships — Limited partners do not have voting rights in a partnership and therefore cannot have direct investment. The existence of direct investment in a partnership is determined by the percentage of control exercised by the general partner(s). The percentage of control exercised by a general partner may differ from its financial interest in the partnership. (1) General Partnerships. Determination of voting interest — "Voting interest" is defined in instructions 13-17 on page 27. The determination of the percentage of voting interest in a general partnership is based on who controls the partnership. The percentage of voting interest is not based on the percentage of ownership in the partnership's equity. The general partners are presumed to control a general partnership. Unless a clause to the contrary is contained in the partnership agreement, a general partnership is presumed to be controlled equally by each of the general partners. For example, if a general partnership has two general partners, and nothing to the contrary is stated in the partnership agreement, each general partner is presumed to have a 50 percent voting interest. If there are three general partners, each general partner is presumed to have a one-third voting interest, etc. Managing partners — If one general partner is designated as the managing partner responsible for the day-to-day operations of the partnership, this does not necessarily transfer control of the partnership to the riianaging partner . If the managing partner must obtain approval for annual operating budgets, and for decisions relating to significant management issues, from the other general partners, then the managing partner does not have a 100 percent voting interest in the partnership. (2) Limited Partnerships. (a) Determination of voting interest — "Voting interest " is defined in instructions 13-17 on page 27. The determi- nation of the percentage of voting interest in a limited partnership is based on who controls the partnership. The percentage of voting interest is not based on the percentage of ownership in the partnership's equity. In most cases, the general partner is presumed to control a limited partnership , and therefore, have a 100 percent voting interest in the limited partnership. If there is more than one general partner, the partnership is presumed to be controlled equally by each of the general partners, unless a clause to the contrary is contained in the partnership agreement. For example, if a limited partnership has two general partners, and nothing to the contrary is stated in the partnership agreement, then each general partner is presumed to have a 50 percent voting interest in the limited partnership. Limited partners do not normally exercise any control over a limited partnership. Therefore unless a clause to the contrary is contained in the partnership agreement, limited partners are presumed to have zero voting interest m a limited partnership . If a limited partnership has one or more limited partners who are foreign persons, the foreign persons are presumed to have no voting interest and, therefore, no direct investment in the limited partnership. Managing partners — See discussion under ""General Partnerships" above. (b) Consolidation Rules Consolidation rules and reporting requirements when: (i| A U.S. affiliate is the only general partner of a U.S. limited partnership — A US affiliate who is the only general partner of a U.S. limited partnership is presumed to control the partnership (unless a clause to the contrary is contained in the partnership agreement) and must consolidate the operations of the partnership into its Form BE-12. The following example illustrates the reporting requirements. Example 1 . Corporation GP, a U.S. affiliate, is the sole general partner of Company LP, a U.S. limited partnership. GP owns 1 percent of the equity of LP. A limited partner owns the remaining 99 percent of the equity. GP is presumed to control LP and must consolidate LP into its Form BE-12. The 99 percent financial interest in the equity of LP held by the limited partner must be reflected on GP's Form BE-12 in item 51 (other noncurrent liabilities). The 99 percent financial interest in the profits or losses of LP held by the limited partner must be reflected in item 66 (other costs and expenses). In addition, LP must be listed on GP's Form BE-12, Supplement A. The Supplement A must show that GP has a 100 percent voting interest in LP. (ii) A U.S. affiliate that is a limited partnership has at least two general partners — If nothing to the contrary is stated in the partnership agreement, the limited partnership is presumed to be controlled equally by each of the general partners. The limited partnership must file a separate Form BE-12. DO NOT CONSOLIDATE the operations of the limited partnership into the BE-12 report of any of the limited partners or general partners. Each general partner, if required to file a Form BE-12, must report the limited partnership using the equity method of accounting. In addition, each general partner must list the limited partnership on its Form BE-12, Supplement B. For example, if there are two general partners, the Supplement B of each general partner must show that they have a 50 percent voting interest in the limited partnership. The reporting requirements for the limited partners are illustrated in example 3 on the next page. (iii) A U.S. limited partnership has only one general partner and that general partner is a foreign parent — The foreign parent is presumed to control the partnership (unless a clause to the contrary is contained in the partnership agreement). The limited partnership must file a separate Form BE-12. DO NOT CONSOLIDATE the operations of the limited partnership into another Form BE-12. The following example illustrates the reporting requirements. Example 2 . Corporation GP, located in Canada, is the sole general partner of Company LP, a limited partnership. GP owns 1 percent of the equity of LP. A limited partner owns the remaining 99 percent of the equity. GP is presumed to control LP and own 100 percent of the voting interest in LP. Since GP is located in Canada, LP must file a separate Form BE-12. LP must report GP as its foreign parent in item 13a (ownership held directly by all foreign parents) and report 100 percent voting interest in item 133 column (1) and 1 percent equity interest in item 13a column (3). LP is not required to make any adjustments to its Form BE-12 to reflect the financial interests of the limited partner. Page 26 BE-12ILF) (REV. 12/2002) 259 PART I — IDENTIFICATION OF U.S. AFFILIATE — Continued (iv) A U.S. affiliate is a limited partner in a U.S. limited partnership — A U.S. affiliate that is a limited partner in a U.S. limited partnership must not consolidate the operations of the limited partnership into its Form BE-12 . - and must not list the limited partnership on either its Supplement A or B. The limited partner is presumed to have zero control over the limited partnership (unless a clause to the contrary is contained in the partnership agreement). The following example illustrates the reporting requirements. Example 3 : Assume the same facts as in example 2 above except that Company LP also has a 99 percent limited partnership interest in Company LP2. Since LP is just a limited partner, LP is presumed to have zero control over LP2. LP must not consolidate the operations of LP2 into its Form BE-12. Instead, LP must treat its financial interest in LP2 as an investment. LP must include its 99 percent financial interest in the equity of LP2 in item 48 (other noncurrent assets). LP must include its 99 percent financial interest in the profits or losses of LP2 in item 62 (other income). LP2 must not be listed on LP's Supplement A or B. c. Limited Liability Companies (LLCs) Determination of voting interest — "Voting interest" is defined in instructions 13-17 below. The determination of the percentage of voting interest in an LLC is based on who controls the LLC. The percentage of voting interest is not based on the percentage of ownership in the LLC's equity. LLCs are presumed to be controlled equally by each of its members (owners), unless a clause to the contrary is contained in the articles of organization or in the operating agreement. For example, if an LLC has two members, and nothing to the contrary is contained in the articles of organization or in the operating agreement, then each member is presumed to have a 50 percent voting interest in the LLC; if there are three members, then each member is presumed to have a one-third voting interest in the LLC. Managing member — If one member is designated as the managing member responsible for the day-to-day operations of the LLC, this does not necessarily transfer control of the LLC to the managing member . If the managing member must obtain approval tor annual operating budgets, and for decisions relating to other significant management issues from the other members, then the managing member does not have a 100 percent voting interest in the LLC. 9. U.S. affiliates NOT full consolidated — Report equity investments in U.S. business enterprises that are owned 20 percent or more (including those that are majority owned) but not fully consolidated using the equity method of accounting. DO NOT eliminate intercompany accounts for investments reported using the equity method. You may report immaterial investments using the cost method of accounting if this treatment is consistent with your normal reporting practice. Report equity investments owned less than 20 percent using the cost method of accounting. List all U.S. affiliates in which this U.S. affiliate has a voting interest and that are not consolidated in this Form BE-12(LF) on the Supplement B. 13-17 — Ownership — Voting interest and Equity interest a. Voting interest is the percent of ownership in the voting equity of the U.S. affiliate. Voting equity consists of ownership interests that have a say in the management of the company. Examples of voting equity include capital stock that has voting rights, and a general partner's interest in a partnership. See instruction 7b(1) and 7b(2)(a) on page 26 for information about determining the voting interest for partnerships. See instruction 7c above for information about determining the voting interest for Limited Liability Companies. b. Equity interest is the percent of ownership in the total equity (voting and nonvoting) of the U.S. affiliate. Nonvoting equity consists of ownership interests that do not have a say in the management of the company. An example of nonvoting equity is preferred stock that has no voting rights. Another example is a limited partner's interest in a limited partnership. See instruction 7b(2) on page 26 for information about limited partnerships. Voting interest and equity interest are not always equal. For example, an owner can have a 100 percent voting interest in a U.S. affiliate but own less than 100 percent of the affiliate's total equity. This situation is illustrated in the following example. Example : U.S. affiliate A has two classes of stock, common stock and preferred stock. There are 50 shares of common stock outstanding. Each common share is entitled to one vote and has an ownership interest in 1 percent of the total owners' equity. There are 50 shares of preferred stock outstanding. Each preferred share has an ownership interest in 1 percent of the total owners' equity but has no voting rights. Foreign parent B owns all 50 shares of the common stock. Unaffiliated U.S. investors own all 50 shares of the preferred stock. Since foreign parent B owns all of the voting stock, foreign parent B has a 100 percent voting interest in U.S. affiliate A. However, since all 50 of the nonvoting preferred shares are owned by unaffiliated U.S. investors, foreign parent B has only a 50 percent equity interest in U.S. affiliate A. 24—37 Industry classification of fully consolidated U.S. affiliate Book Publishers — Printing books without publishing is classified in international surveys industry (ISI) code 3231 (printing and related support activities) not ISI code 5111 (newspaper, periodical, book, and directory publishers). Real Estate Investment Trusts (REITS) — REITS must allocate their sales based on the activities of their fully consolidated domestic U.S. holdings. For example, a REIT that owns a shopping center, must classify rents generated by the shopping center in international surveys industry (ISI) code 5310 (real estate). A REIT that holds a limited partner's interest in a limited partership and thus has no vote in the management of the partnership must classify revenues generated by that activity in ISI code 5252 (Funds, trusts and other financial vehicles). A REIT that lends money for mortgages to owners of real estate must classify revenues generated by that activity in ISI code 5224 (non-depository credit intermediation). A REIT that holds only minority voting interests in one or more properties must report revenues generated by those minority interests as "income from equity investments in unconsolidated affiliates" (item 60) and the REIT must be classified in ISI code 5512 (holding companies, except bank holding companies). 39. Number of employees covered by collective bargaining agreements — Employees are covered by collective bargaining agreements if: a. They are represented by a labor organization which is recognized as their bargaining agent, b. Their wages are determined by collective bargaining, and c. Settlements are embodied in signed, mutually binding collective bargaining agreements. Thus, include employees covered by national unions, plant unions, or any other organization meeting these criteria. A reasonable estimate is acceptable. If necessary, to facilitate estimation, you may consider all employees of a given establishment, plant, location, unit, etc., to be covered by collective bargaining agreements if a majority of those employees meet the three criteria above. PART II - FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE Section B — INCOME STATEMENT 61 . Certain realized and unrealized gains (losses) — Special instructions for (1) dealers in financial instruments, finance and insurance companies, and (2) real estate companies. (1) Dealers in financial instruments (including securities, currencies, derivatives, and other financial instruments) and finance and insurance companies — Include in item 61: (a) impairment losses as defined by FAS 115, (b) realized gains and losses on trading or dealing, (c) unrealized gains or losses, due to changes in the valuation of financial instruments, that flow through the income statement, and (d) goodwill impairment as defined by FAS 142. DO NOT include unrealized gains or losses due to changes in the valuation of financial instruments that are taken to other comprehensive income. Reflect such changes in item 56c (total accumulated other comprehensive income (loss)). DO NOT include income from explicit fees and commissions in item 61. Include income from explicit fees and commissions as part of your income from operations on lines 24 through 37. (2) Real estate companies — Report gains or losses from the sale, disposition, or revaluation of land, other property, plant, and equipment, or other assets as follows: (a) Realized gains and losses Report the gross amount of revenues earned and expenses incurred from the sale of real estate that you owned. Report the revenues earned from such sales as operating income in items 37 column 2, 59, and 76. Also report the revenues earned as sales of goods in item 77. Report all expenses incurred relating to such sales, including the net book value of the real estate sold, as costs of goods sold in item 64. Do not net the expenses against the revenues. DO NOT report any amounts in item 61. (b) Impairment of long-lived assets Include impairment losses, as defined by FAS 144 and recognized during the period, in item 61 (certain realized and unrealized gains (losses)). (c) Goodwill impairment Include goodwill impairment as defined by FAS 142 in item 61 (certain realized and unrealized gains (losses)). (d) Unrealized gains Include gains recognized due to the revaluation of real estate assets in item 61 (certain realized and unrealized gains (losses)). BE-12ILFI (REV. 12/2002) Page 27 260 PART II — FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE — Continyed Section D - - DISTRIBUTION OF SALES OR GROSS OPERATING REVENUES 76 — 83 Diaggregate the total sales or gross operating revenues into sales of goods, investment income, and sales of services. 77. Sales of goods — Goods are normally economic outputs that are tangible. Report as sales of goods: • Mass produced audio and video tapes and discs, and exposed film. • Books NOTE: Book publishers -- Include revenues derived from publishing books (i.e., the design, editing, and marketing activities necessary for producing and distributing books) as sales of goods. • Energy trading activities • Magazines and periodicals sold in retail stores NOTE: Report subscription sales as sales of services on line 79. • Packaged general use computer software • Structures sold by businesses in real estate or construction • Electricity, Natural gas, and Water NOTE: Revenues derived from transmitting and/or distributing these goods should, to the extent feasible, be reported as sales of services on line 79. 78. Investment income — Report dividends and interest generated by finance and insurance activities as investment income. NOTE: Report commissions and fees as sales of services on line 79. 79. Sales of services — Services are normally economic outputs that are intangible. Report as sales of services: • Advertising revenue • Commissions and fees earned by companies engaged in finance and real estate activities • Premiums earned by companies engaged in insurance activities. NOTE: Calculate as premiums written during the year, plus unearned premiums at the beginning of the year, minus unearned premiums at the end of the year. • Commissions earned by agents or brokers (i.e., wholesalers) who act on behalf of buyers and sellers in the wholesale distribution of goods. NOTE: Agents or brokers do not take title to the goods being sold. • Magazines and periodicals sold through subscriptions NOTE: Report magazines and periodicals sold through retail stores, as sales of goods on line 77. • Newspapers • Pipeline transportation • Software downloaded from the Internet, electronic mail, an Extranet, an Electronic Data Interchange network, or some other online system. • Computer systems design and related services • Electricity transmission and distribution. Natural gas distribution, and Water distribution Section E — EMPLOYEE COMPENSATION 84 — 86 Total employee compensation — Employee compensation consists of wages and salaries of employees and employer expenditures for all employee benefit plans. 84. Wages and salaries are the gross earnings of all employees before deduction of employees' payroll withholding taxes, social insurance contributions, group insurance premiums, union dues, etc. Include time and piece rate payments, cost of living adjustments, overtime pay and shift differentials, bonuses, profit sharing amounts, and commissions. Exclude commissions paid to independent personnel who are not employees. Wages and salaries include direct payments by employers for vacations, sick leave, severance (redundancy) pay, etc. Exclude payments made by, or on behalf of, benefit funds rather than by the employer. (Employer contributions to benefit funds are included in employee benefit plans.) Wages and salaries include in-kind payments, valued at their cost, that are clearly and primarily of benefit to the employees as consumers. Do not include expenditures that benefit employers as well as employees, such as expenditures for plant facilities, employee training programs, and reimbursement for business expenses. 85. Employee benefit plans are employer expenditures for all employee benefit plans, including those required by government statute, those resulting from a collective- bargaining contract, or those that are voluntary. Employee benefit plans include Social Security and other retirement plans, life and disability insurance, guaranteed sick pay programs, workers' compensation insurance, medical insurance, family allowances, unemployment insurance, severance pay funds, etc. If plans are financed jointly by the employer and the employee, include only the contributions of the employer. Section I — TECHNOLOGY 107 — 112 Research and development — R&D includes basic and applied research in the sciences and engineering. It also includes design and development of new products and processes and enhancement of existing products and processes. R&D includes activities carried on by persons trained, either formally or by experience, in the physical sciences such as chemistry and physics, the biological sciences such as medicine, and engineering and computer science. R&D includes these activities if the purpose is to do one or more of the following things: a. Pursue a planned search for new knowledge, whether or not the search has reference to a specific application (Basic research); b. Apply existing knowledge to problems involved in the creation of a new product or process, including work required to evaluate possible uses (Applied research); or c. Apply existing knowledge to problems involved in the improvement of a present product or process. (Development). R&D includes the activities described above whether assigned to separate R&D organizational units of the company or carried out by company laboratories and technical groups not a part of an R&D organization. 107. Research and development expenditures — Include all Research and development (R&D) performed BY the U.S. affiliate for its own account or for others, including the foreign parent and foreign affiliates of the foreign parent. Include all costs incurred in performing R&D, including depreciation, amortization, wages and salaries, taxes, materials and supplies, overhead and all other indirect costs. Exclude the cost of all R&D funded by the U.S. affiliate but performed by others. Report such R&D in item 1 1 1 (R&D performed FOR U.S. affiliate by others on a contractual basis). 112. Research and development employees are scientists, engineers, and other professional and technical employees, including managers, who spend all or a majority of their time engaged in scientific or engineering R&D work, at a level that requires knowledge of physical or life sciences, engineering, or mathematics at least equivalent to that acquired through completion of a four-year college course with a major in one of these fields (i.e., training may be either formal or by experience). Section J — EXPORTS AND IMPORTS OF U.S. AFFILIATE 113 — 169 U.S. trade in goods (exports and imports) — Report the data on U.S. trade in goods between U.S. affiliates and foreign persons on a "shipped" basis, not the "charged" basis. See "IMPORTANT NOTES" at the top of page 10 for more details. Differences between the "charged" and "shipped" bases may be substantial. A major difference arises when a U.S. affiliate buys goods in country A and sells them in country B, but the goods are shipped directly from country A to country B. Because the goods did not physically enter or leave the United States, they are not U.S. trade. However, when the U.S. affiliate records the transactions on its books, it would show a purchase charged to it from country A and a sale charged by it to country B. If the U.S. affiliate's trade data in this survey were prepared on the "charged" basis, the purchase and sale would appear incorrectly as a U.S. import and U.S. export, respectively. Other differences arise when the U.S. affiliate charges the sale of its products to a foreign parent in one country, but ships the goods directly from the United States to an unaffiliated foreign person in another country. If the data are on the "shipped" basis, this should be a U.S. export to an unaffiliated foreign person, not to the foreign parent, and the destination should be the country of the unaffiliated foreign person, not that of the foreign parent. If a material difference exists between the "charged" and "shipped" basis, trade must be reported on the "shipped" basis. To do this, the U.S. affiliate may have to derive the data from export and import declarations filed with U.S. Customs or from shipping and receiving documents, rather than from accounting records, or may have to otherwise adjust its data from a "charged" to a "shipped" basis. a. Definition of U.S. trade in goods — The phrases "U.S. trade in goods," "U.S. goods exports," and "U.S. goods imports" refer to physical movements of goods between the customs area of the United States and the customs area of a foreign country. See "IMPORTANT NOTES" at the top of page 10 for more details. b. Timing — Only include goods actually shipped between the United States and a foreign country during FY 2002 regardless of when the goods were charged or consigned. For example, include goods shipped by the U.S. affiliate in FY 2002 that were charged or consigned in FY 2003, but exclude goods shipped in FY 2001 that were charged or consigned in FY 2002. Page 28 BE-12{LFI IREV. 12/20021 261 PART II — FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE — Continued c. Trade of the U.S. affiliate — Goods shipped by, or to, the U.S. affiliate whether or not they were actually charged or consigned by, or to, the U.S. affiliate, are — considered to be trade of the U.S. affiliate. d. Country of ultimate destination or origin — The country of ultimate destination is the country where the goods are to be consumed, further processed, or manufactured, as known to the shipper at the time of exportation. If the shipper does not know the country of ultimate destination, credit the shipment to the last country to which the shipper knows that the goods will be shipped in the same form as when exported. The country of origin is the country where the goods were grown, mined, or manufactured. In instances where the country of origin cannot be determined, credit the transactions to the country from which the goods were shipped. e. By (or to) whom goods were shipped — Shipment by, or to, an entity refers to the physical movement of merchandise to or from the U.S. customs area by, or to, that entity regardless of by, or to, whom the goods were charged or consigned. For example, if the U.S. affiliate charges goods to a foreign parent in France but ships the goods to an unaffiliated foreign person in Switzerland, record the goods as U.S. goods exports by the U.S. affiliate to the unaffiliated foreign person in Switzerland. NOTE: Goods shipped by an independent carrier or a freight forwarder at the expense of an entity are shipments by the entity. f. Valuation of exports and imports — Value U.S. goods exports and imports f.a.s. (free alongside ship) at the port-of-exportation. This includes all costs incurred up to the point of loading the goods aboard the export carrier at the U.S. or foreign port of exportation, including the selling price at the interior point of shipment (or cost if not sold), packaging cost, and inland freight and insurance. It excludes all subsequent costs such as loading costs, U.S. and foreign import duties, and freight and insurance from the port of exportation to the port of entry. Section K - 170 — 227 SCHEDULE OF EMPLOYMENT AND PROPERTY, PLANT, AND EQUIPMENT, BY LOCATION The Schedule of Employment and Property, Plant, and Equipment, by Location covers the 50 States, the District of Columbia, and all territories and possessions of the United States. Include in this schedule only data pertaining to those U.S. business enterprises that are fully consolidated into the reporting U.S. affiliate. Do not consolidate or include data for foreign business enterprises or operations, whether incorporated or unincorporated. Column (3) Number of employees — Employment is the number of full-time and part-time employees on the payroll at the end of FY 2002, excluding home workers and independent sales personnel who are not employees. If employment at the end of FY 2002, or the count taken at some other time during FY 2002, was unusually high or low because of temporary factors (e.g., a strike), give the number of employees that reflects normal operations. If the business enterprise's activity involves large seasonal variations, give the average number of employees for FY 2002. If given, the average should be the average for FY 2002 of the number of persons on the payroll at the end of each payroll period, month, or quarter. If precise figures are not available, give your best estimate. Location of employees or of an asset is the U.S. State, territory, or possession in which the person is permanently employed, or in which the land or other property, plant, and equipment is physically located and to which property taxes, if any, on such assets are paid. For example, an employee permanently based and carried on the payroll of a company located in California, who is on a duty assignment of one year or less in Texas at the end of the reporting period, should be shown as located in California rather than Texas. 226. Foreign — Use the category "foreign" to report fixed assets that belong to and are carried directly on the books of the consolidated domestic U.S. affiliate, but are located outside of the United States. Do not include on the foreign line employees who are on a duty assignment outside of the United States for one year or less. Include such employees in the U.S. state, territory or possession where they are normally located. In most cases do not include any employees on the foreign line. One exception is when employees located outside of the United States for more than one year are carried on the payroll of the domestic U.S. affiliate. Such employees should be reported on the foreign line. Do not include on the foreign line employees located outside of the United States for more than a year if they are carried on the payroll of a foreign company. Such employees do not belong on the Form BE-12(LF). 227. Other property, plant, and equipment — Use the category "other property, plant, and equipment" to report (1) items that frequently switch locations such as aircraft, railroad rolling stock, ships of U.S. registry, and trucks engaged in interstate transportation, (2) items such as pipelines, fiber optic cable, power lines, etc., located in more than one state, (3) satellites, and undersea cable, and (4) property leased to others, except land or buildings, under operating leases. PART III — INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT Section B - 239 — 240 INTERCOMPANY BALANCES BETWEEN THE U.S. AFFILIATE AND THE FOREIGN PARENT NAMED IN ITEM 229, ACCORDING TO THE BOOKS OF THE U.S. AFFILIATE For leases between the U.S. affiliate and the foreign parent that are capitalized, report the outstanding lease obligations, or receivables, and any related interest liabilities or receivables in items 239 or 240. Section C — CHANGES IN EQUITY HOLDINGS IN THE U.S. AFFILIATE BY THE FOREIGN PARENT 241 . Increase in equity interest Incorporated U.S. affiliate — Report purchases of capital stock by the foreign parent from the U.S. affiliate and other contributions by the foreign parent of equity capital not resulting in the issuance of stock to the foreign parent by the U.S. affiliate. Unincorporated U.S. affiliate — Report the foreign parent's share of any increase in the U.S. affiliate's equity (or home office account), excluding amounts reported in items 239, 240, 258, 259, and 261. 242. Decrease in equity interest Incorporated U.S. affiliate — Report sales of capital stock by the foreign parent to the U.S. affiliate, returns of contributed equity capital to the foreign parent not resulting in a reduction of issued stock, and distributions to the foreign parent (excluding stock or cash dividends, and payments on debt owed to the parent). Unincorporated U.S. affiliate— Report the foreign parent's share of any decrease in the U.S. affiliate's equity (or home account), excluding amounts reported in items 239, 240, 251, 258, 259, and 261. Section D — PAYMENTS AND RECEIPTS OF DIVIDENDS, DISTRIBUTED EARNINGS, INTEREST, ROYALTIES AND LICENSE FEES, AND OTHER SERVICES BETWEEN U.S. AFFILIATE AND FOREIGN PARENT 253. Royalties, license fees, and other fees for the use or sale of intangible property — NOTE: Companies that rent videos and discs from/to their foreign parent or that exhibit motion pictures or distribute or produce motion pictures that they provide to, or receive from, their foreign parent must report data on line 255 (film and television tape rentals) not line 253. 256. Allocated expenses and sales of services by type — b. Financial services — Report payments and receipts for the following types of financial services: • Brokerage including foreign exchange brokerage, • Private placement of securities, • Underwriting of securities, • Financial management, • Credit-related services, • Financial advisory and custody services, • Securities lending, • Origination fees in connection with over-the-counter derivative financial instruments, but only if the fees are separately identified in transaction documentation issued by the dealers in the instruments to the customers, and are not considered undifferentiated components of overall trading or market making gains. All other financial services — including • Asset pricing, • Security exchange listing fees, • Demand deposit fees, • Securities rating services, • Electronic funds transfer, • Check processing fees, • Mutual fund exit fees, load charges, and "12b-1" service fees, • Securities redemption or transfer, • ATM network services, • Securities or futures clearing and settling services. BE-12ILF) (REV 12/20021 Page 29 262 PART III — INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT — Continued DO NOT report as financial services: Fees for commodity or merchandise brokerage services, Earnings from buying and selling (i.e., trading) commercial paper or other securities for your own account. Gains or losses due to selling or revaluing securities, Funding for sales promotion and representative offices (report in item 256g "other" services), Interest under repurchase or reverse repurchase agreements. Earnings from dealer markups on buy and sell transactions (i.e., bid/ask price spreads), Real estate brokerage fees. Business brokerage fees. Annuity purchases and payments to annuitants. Pension fund contributions and benefits. Earnings of principals from buying and selling of financial instruments, Bid/ask price spreads and trading profits on dealing in foreign currencies, securities, and other financial instruments, Insurance premiums and losses, and commissions on insurance. Interest and dividend receipts and payments c. Transportation — Payments by the U.S. affiliate to the foreign parent for carrying merchandise from foreign destinations to the United States and between foreign destinations; receipts by the U.S. affiliate from the foreign parent for carrying merchandise from the United States to foreign destinations and for carrying freight betw/een foreign destinations. d. Computer and information services — Report payments and receipts for: (1) Data entry processing (both batch and remote), and tabulation; computer systems analysis, design, and engineering; custom software and programming services (including web site design); integrated hardware/software systems; and other computer services (e.g., timesharing, maintenance, web site management, and repair). (2) Business and economic data base services, including business news, stock quotation, and financial information services; medical legal, technical, demographic, bibliographic, and similar data base services; general news services, such as those purchased from a news syndicate; direct non-bulk subscriptions (including online) to newspapers and periodicals; and other information services, including reservation systems and credit reporting and authorization systems. For airline reservation systems, include booking fees from foreign carriers for the use of your reservation system, whether accessed directly or by a U.S. or foreign travel agent. e. Management, consulting, and public relations services — Include (1) management services; (2) consulting services, except computer consulting services which belong in item 256d; and (3) public relations services. f. Research, development, and testing services — Include commercial and noncommercial research, product development services, and testing services. PART IV — DIRECT TRANSACTIONS OR ACCOUNTS BETWEEN U.S. AFFILIATE AND FOREIGN AFFILIATES OF THE FOREIGN PARENTIS) (FAFP) 262 — 290 Columns |2) and 13) — Current and long-term liabilities or receivables. Include all intercompany accounts or indebtedness of the U.S. affiliate with the FAFP whether current or long-term. For leases between the U.S. affiliate and the FAFP that are capitalized, report the outstanding lease obligations, or receivables, and any related interest liabilities or receivables in columns (2) and (3). Column 15) — Royalties, license fees, and other fees for the use or sale of intangible property. NOTE: Companies that rent videos and discs, from/to a FAFP must report data in column (7) (film and television tape rentals) not column (5). Companies that exhibit motion pictures or distribute or produce motion pictures that they provide to, or get from, a FAFP must report data in column (7) (film and television tape rentals) not column (5). Column 6 — Charges for use of tangible property. See instruction for item 254 on page 16 of this form. Column 7 — Film and television tape rentals. See instructions for column (5) above. Column 8 — Allocated expenses and sales of services. In addition to the instructions below for insurance services, also see the instructions for items 256b through 256g on pages 16, 29 and 30 of this form. However, for Part IV, the instructions apply to the FAFP NOT the foreign parent. Insurance services — To avoid duplication with other BEA surveys report ONLY the following: In items 263 through 276, column 8, report payments or accruals, whichever occurred first, by the U.S. affiliate for the purchase of primary insurance from FAFPs. In items 277 through 290, column 8, report receipts or accruals, whichever occurred first, from FAFPs to the U.S. affiliate, for losses covered by insurance reported in items 263 through 276, column 8. Page 30 BE-12ILF) (REV. 12/2002) 263 0MB No. 0608-0042: Approval Expires 12/31/2005 formBE-12(SF) (REV 1220021 US, DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS BENCHMARK SURVEY OF FOREIGN DIRECT INVESTMENT IN THE UNITED STATES — 2002 (SHORT FORM) ELECTRONIC See our web site at wvvw.bea.90v/astar for details FILING o„ MAIL U.S. Department of Commerce REPORTS Bureau of Economic Analysis, BE-49(A) TO Washington, DC 20230 OR DELIVER U.S. Department of Commerce REPORTS Bureau of Economic Analysis, BE-49(A) TO Shipping and Receiving Section, MlOO 1441 L Street, NW Washington, DC 20005 Important CHANGE IN REPORTING REQUIREMENTS - Starting with the 2002 BE-12, most U.S, affiliates that are NOT maiority-owned by foreign parents should file a Form BE-12(SF). Read the Instruction Booklet before completing this form. Definitions of affiliate, U.S. affiliate, business enterprise, foreign parent, minority-owned, majority-owned, etc., are found on pages 6 and 7 of the booklet. Insurance companies see special instructions starting on page 8 of the booklet. Additional instructions by line item are at the back of this form. 1. PLEASE REVIEW THE QUESTIONS BELOW TO DETERMINE IF YOUR U.S. BUSINESS IS REQUIRED TO FILE FORM BE-12(SF). la. Were at least 10 percent of the voting rights in your business directly or indirectly owned by a foreign person at the end of your 2002 fiscal year? (See 2 below for fiscal year definition) I I Yes — Go to question lb. NOTE: Your business is hereinafter referred to as a "U.S. affiliate." I ^ No — You are not required to file Form BE-12(SF) but may be required to file Form BE-12(X); see fnstruct/on Book- let, page 6, instruction I. A. 4. lb. Did any one of the items-Total assets. Sales or gross operating revenues, or Net income (loss)-for the U.S. affiliate (not just the foreign parent's share) exceed $10 million at the end of, or for, its 2002 fiscal year? (Real estate companies see Instruction Booklet, page 6, instruction I.C.) I I Yes — Go to question 1c. I ^ No — You are not required to file Form BE-12(SF) but are required to file Form BE-12(X); see Instruction Booklet, page 6, instruction l,A.4, 1c. Is the U.S. affiliate a bank or bank holding company? LJ Yes — You are not required to file Form BE-12(SF) but are required to file Form BE-12 BANK by May 31. 2003: see Instruction Booklet, page 6. instruction I.A.3. I I No — Go to question Id. Id. Was the U.S. affiliate majority-owned by foreign parents at the end of its 2002 fiscal year? (A U.S. affiliate is "majority- owned" if the combined direct and indirect ownership interests of all foreign parents of the U.S. affiliate exceed 50 percent.) I I Yes — Go to question 1e. D No — You are required to file Form BE-12(SF) by May 31 . 2003. 1e. Did any one of the items-Total assets. Sales or gross operating revenues, or Net income (loss)-for the U.S. affiliate (not just the foreign parent's share) exceed $125 million at the end of. or for, its 2002 fiscal year? n Yes — You are required to file Form BE-1 2(LF) by May 31 , 2003: see Instruction Booklet, page 5, instruction I.A.I LJ No — You are required to file Form BE-12(SF) by May 31, 2003: 2. U.S. AFFILIATE'S 2002 FISCAL YEAR -The affiliate s finan cial reporting year that had an ending date in calendar year 2002. 3. CONSOLIDATED REPORTING - A U.S. affiliate must file on a fully consolidated domestic U.S. basis, including in the consolidation all nonbank U.S. affiliates in which it directly or indirectly owns more than 50 percent of the outstanding voting interest. The consolidation rules are found on page 15 at the back of this form. 4. ASSISTANCE — Telephone: 202-606-5577: FAX: 202-606-5319: E-mail: be 12/1 5@bea.gov 5. DUE DATE — A completed Form BE-12(SF) is due no later than May 31, 2003. 6. ROUNDING Report currency amounts m U.S. dollars rounded to thousands (omit- ting 000) Do not enter amounts in the shaded portions of each line. Example — If amount is $1 .334.891 .00 report as ' r; ■ Bil. Mil. Thous. ^Dols. 335 BEA USE ONLY Control number Public reporting burden for this short form is estimated to vary from 1 to 10 hours per response, with an average of 3.8 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Director, Bureau of Economic Analysis (BE-1), U.S. Department of Commerce, Washington, DC 20230; and to the Office of Management and Budget, Paperwork Reduction Proiect 0608-0042, Washington, DC 20503. MANDATORY — This survey is being conducted pursuant to the International Investment and Trade In Services Survey Act (hereinafter "the Act") and the filing of reports is mandatory. CONFIDENTIALITY — The Act provides that your report to this Bureau is CONFIDENTIAL and may be used only for analytical or statistical purposes. Without your prior written permission, the information filed in your report CANNOT be presented in a manner that allows it to be individually identified. Your report CANNOT be used for purposes of taxation, investigation, or regulation. Copies retained in your files are immune from legal process. Section A — IDENTIFICATION OF U.S. AFFILIATE 1. Name and address of U.S. affiliate — If there are any changes in the name or address, make the changes directly on the label. If no label has been affixed, enter the name and address in full. Name of U.S. Affiliate c/o (care of) Street or PO Box City and State ZIP Code Foreign Postal Code OR 2. Location of U.S. affiliate — If the mailing address in item 1 is in care of someone other than the U.S. affiliate, give the name and location of the primary U.S. headquarters of the affiliate. If the U.S. affiliate is a real estate investment with no U.S. headquarters, give the name (if any) and location of the real estate. If the real estate is in more than one location, give the name and location of the real estate with the largest gross book value. Name of U.S. Affiliate Street or PO Box City and State ZIP Code 3. Consolidated reporting by the U.S. affiliate - The consolidation rules are found on page 15 at the back of this form Is more than 50 percent of the voting interest in this U.S. affiliate owned by another U.S. affiliate of your foreign parent? "Voting interest" is defined in instruchon 68a on page 19 at the back of this form. 1400 1 I I Yes ^ aDNo If the answer is "Yes" — Do not complete this report unless exception 3d or 3e described in the consolidation rules on page 15 applies. If these exceptions do not apply, please forward this Form BE 12 sun/ey packet to the U.S. business enterprise owning your company more than 50 percent, and notify BEA of the action taken by filing Form BE-12(X) with Item 2(cl completed. If the answer is "No" - Complete this report in accordance with the consolidation rules on page 15 4. Enter Employer Identification Number(s) used by the U.S. affiliate to file income and payroll taxes. Primary Other 5. REPORTING PERIOD - Reporting period instructions are found on page IS at the back of this form. This U.S. affiliate's 2002 fiscal year ended in calendar year 2002 on Example — If the fiscal year ended on March 31, report for the 12 month period ended March 31, 2002. Month Day Year PENALTIES — Whoever fails to report shall be subject to a civil penalty of not less than $2,500, and not more than $25,000, and to injunctive relief commanding such person to comply, or both. Whoever willfully fails to report shall be fined not more than $10,000 and, if an individual, may be imprisoned for not more than one year, or both. See additional information on page 15, at the back of this form. PERSON TO CONSULT CONCERNING QUESTIONS ABOUT THIS REPORT — Enter name and address Name Address I 2 I Nun CERTIFICATION — The undersigned official certifies that this report has been prepared in accordance with the applicable instructions, is complete, and is substantially accurate except that, in accordance with instruction lll.G. on page 8 of the Instruction Booklet, estimates may have been provided. Authorized official's signature Date TELEPHONE NUMBER 1 Area code I 3 I Extens Print or type name and title FAX NUMBER 4 Area code 5 I Nui mber Telephone number FAX number May we use e-mail to correspond with you to discuss questions relating to this Form BE-12(SF), including questions that may contain information about your company that you may consider confidential? (Note that electronic mail is not inherently confidential; we will treat information we receive as confidential, but your e-mail is not necessarily secure against interception by a third party.) ' 1 D Yes - ' 2nNo ■ If yes, please provide your e-mail address. E-mail address 264 IDENTIFICATION OF U.S. AFFILIATE — Continued 6. Did any one of the following three items - total assets, sales or gross operating revenues (excluding sales taxes), or net income (loss) - exceed $30 million at the end of, or for, the (J.S. affiliate's fiscal year that ended in calendar year 2002? 1100 1 n Yes - On the remainder of this Form BE-12(SF), complete ONLY items 21 through 94, and Supplements A and B, on pages 3 through 14. DO NOT complete items 7 through 20 on page 2 ^ 2 □ No - On the remainder of this Form BE-12(SF), complete ONLY items 7 through 20, on page 2. DO NOT complete items 21 through 94, or Supplements A and B on pages 3 through 14. NOTE: Complete items 7 through 20 ONLY if the answer to item 6 is "No. " If the answer to item 6 is "Yes, " skip to item 21, page 3. * Section B — SELECTED DATA OF U.S. AFFILIATE Ownership - Enter percent of ownership, to a tenth of one percent, based on voting stock if an incorporated affiliate or on an equivalent interest if an unincorporated affiliate, in this U.S. affiliate 7. Held directly by ALL foreign parents of this affiliate REPORTING PERIOD Close FY 2002 (1) Close FY 2001 (2) 8. Held indirectly by ALL foreign parents of this affiliate — The calculation of indirect ownership interest is explained in instruction 8 on page 16 at the back of this form. 9. Country of foreign parent — If more than one foreign parent, continue on a separate sheet. To determine the country of jurisdiction for individuals, see Instruction Booklet, page 10, instruction IV. F. BEA USE ONLY 3016 10. Industry of foreign parent — Secure code from list on page 10. If more than one foreign parent, continue on a separate sheet. 3018 1 Enter code - 1M0TE - The industry code of the foreign parent is based on the primary activity of each single entity named as a foreign parent. 1 1 . Country of ultimate beneficial owner (UBO) — UBO is defined in item II. Q. on page 7, of the Instruction Booklet. To determine the country of jurisdiction for individuals, see Instruction Booklet, page 10, instruction IV.F. If more than one UBO, continue on a separate sheet. 3022 BEA USE ONLY 12. Industry of ultimate beneficial owner — Secure code from list on page 10. If more than one UBO, continue on a separate sheet. 3023 ' Enter code - NOTE - The UBO industry code is based on the UBO's world-wide consolidated sales. Code "14" (holding company) is normally an invalid code. 13a. Total assets at the close of the fiscal year that ended in calendar year 2002 — Do not net out liabilities Amount (1) Bil. Mil. Thous. , Pols. 13b. Total liabilities 14. Sales or gross operating revenues for the fiscal year that ended in calendar year 2002, excluding sales taxes — Do not give gross margin 15a. Major activity of fully consolidated domestic U.S. affiliate— Briefly describe the major product(s) and/or service(s) of the U.S. affiliate. If a product, also state what is done to it, i.e., whether it is mined, manufactured, sold at wholesale, transported, packaged, etc. (For example, "manufacture widgets to sell at wholesale.") 15b. Industry of this affiliate — Enter the 4-digit international surveys industry (ISII code of the industry with the largest sales or gross operating revenues. For a full explanation of each code see the Guide to Industry and Foreign Trade Classifications for International Surveys, 2002. 1 164 ISI Code Amount (1) Bil. Mil. Thous. Dols. 16. Net income (loss) for the fiscal year that ended in calendar year 2002, after provision for U.S. income taxes. 17a. Number of employees at close of FY 2002 — Reporting employment (including how to report when employment is subject to unusual variations) is discussed in instruction 17a on page 16 at the back of this form. Number Amount (1) Bil. Mil. Thous. 17b. Total employee compensation — Employee compensation is defined in instruction 17b on page 16 at the back of this form. Dols, 18. Gross book value (at historical cost) of all land and other property, plant, and equipment, at the close of the fiscal year that ended in calendar year 2002. Number 19. Number of acres of U.S. land owned. Exclude acres of mineral rights if you do not own the land. Amount (1) Bil. Mil. Thous. Dols 20. Research and development (R&D) expenditures for R&D performed by the U.S. affiliate — R&D is defined in instruction 20 on page 16 at the back of this form. BEA USE ONLY Page 2 FORM BE-12(SF) (REV 12/2002) 265 IDENTIFICATION OF U.S. AFFILIATE — Continued NOTE: Complete items 21 through 94 and Supplements A and B ONLY if the answer to item 6 is "Yes" W Section C — OWNERSHIP AND INDUSTRY CLASSIFICATION OF U.S. AFFILIATE 21. Did the U.S. business enterprise become a U.S. affiliate during its fiscal year that ended in calendar year 2002? 1008 -I \_\ Yes If the answer is "Yes" — Enter date U.S. business enterprise became a ^ 2 EH No '-'•^- ^ff'I'S^s and see instruction 21 on page 16 at the back of this form. »■ NOTE — For a U.S. business enterprise that became a U.S. affiliate during its fiscal year that ended in calendar year 2002, report the close FY 2001 data columns as zero. Month Day Year 1 22. Is the U.S. affiliate named in item 1 separately incorporated in the United States, including its territories and possessions? 1011 'iDYes 2 d No - Reporting rules for unincorporated affiliates are found in instruction 22 starting on page 16 at the back of this form. 23. U.S. affiliates fully consolidated in this report - The consolidation rules are found on page 15 at the back of this form. If this report is for a single unconsolidated U.S. affiliate, enter "1" in the box below. If more than one U.S. affiliate is fully consolidated in this report, enter the number of U.S. affiliates fully consolidated. Hereinafter, they are considered to be one U.S. affiliate. Exclude from the full consolidation all minority-owned U.S. business enterprises, and all foreign business enterprises owned by this U.S. affiliate. Include such affiliates in this report on the equity basis, or cost basis if less than 20 percent owned. Except as noted in the consolidation rules on page 15, more-than-50-percent-owned U.S. affiliates must be fully consolidated in this report unless permission has been received in writing from BEA to do otherwise; those not fully consolidated must file a separate Form BE-12(LF), BE-12(SF), BE-12 BANK, or BE-12(X). Number — If number is greater than one, complete the Supplement A. 24. U.S. affiliates NOT fully consolidated - See instruction 24 on page 17 at the back of this form. Number of U.S. affiliates in which this U.S. affiliate has an ownership interest that ARE NOT fully consolidated in this report. Number — If number is not zero, complete the Supplement B. The U.S. affiliate named in item 1 must include data for such U.S. affiliates in this report on an equity basis, or cost basis if less than 20 percent owned, and must notify such other U.S. affiliates of their obligation to file a Form BE- 12(LF), BE- 12(SFI, BE- 12 BANK, or BE- 121X1 in their own name. Ownership — Enter percent of ownership, to a tenth of one percent, based on voting stock if an incorporated affiliate or an equivalent interest if an unincorporated affiliate, in the U.S. affiliate. "Voting interest" is defined in instruction 68a on page 19 at the back of this form. Ownership held directly by all foreign parents of this affiliate — Give name of each foreign parent (if more than 2, continue on a separate sheet.) 25. 10 REPORTING PERIOD Close FY 2002 (1) Close FY 2001 (2) 26. Ownership held directly by all U.S. affiliates of the foreign parents — Give name of each U.S. affiliate (if more than 2, continue on a separate sheet.) 27. 28. 29. Ownership held directly by all other persons (do not list names) TOTAL of directly held voting ownership interests — Sum of items 25 through 29 - 100.0% 100.0% 30. Major activity of fully consolidated domestic U.S. affiliate — Briefly describe the major product(s) and/or service(s) of the U.S. affiliate. If a product, also state what is done to it, i.e., whether it is mined, manufactured, sold at wholesale, transported, packaged, etc. (For example, "manufacture widgets to sell at wholesale.") Industry classification of fully consolidated U.S. affiliate (based on sales or gross operating revenues) — Enter the 4-digit international surveys industry (ISI) code(s) and the sales (as defined in item 36 below) associated with each code. If you use fewer than four codes, you must account for total sales. For a full explanation of each code, see the Guide to Industry and Foreign Trade Classifications for International Surveys, 2002. For an inactive affiliate, show the industry classification(s) based on its last active period: for "start-ups" with no sales, show the intended activitydes). Holding companies (ISI code 5512) should show total income. Note, that a U.S. affiliate that is a conglomerate must determine its industry code based on the activities of the fully consolidated U.S. business enterprise. The "holding company" classification, therefore, is often an invalid industry classification for a conglomerate. Book publishers and Real Estate Investment Trusts (REITs) - See instructions for items 31 through 36 starting on page 17 at the back of this form. 31. Enter code with largest sales ISI code ID Sales 12) Mil. Thous, Dols. 32. Enter code with 2nd largest sales 33. Enter code with 3rd largest sales 34. Enter code with 4th largest sales 35. Sales not accounted for above - this tine. ■ Item 34 must have an entry if you are to report amounts on 36. TOTAL SALES — Gross sales minus returns, allowances, and discounts, or gross operating revenues. Exclude sales or consumption taxes levied directly on the consumer and excise taxes levied directly on manufacturers, wholesalers, and retailers. Include revenues generated during the year from the operations of a discontinued business segment. However, DO NOT include gains or losses on DISPOSALS of discontinued operations. -Equals sum of items 31 through 35, column (2) FORM BE-12ISF) (REV. 12/20021 Page 3 266 BSflW SELECTED FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE p^^^^^ Report all amounts in thousands of U.S. dollars, L Section A — BALANCE SHEET ITEMS NOTE — Report equity investment in all unconsolidated U.S. affiliates and foreign business enterprises owned 20 percent or more (including those that are majority-owned) on an equity basis to include equity in undistributed earnings since acquisition; for U.S. affiliates and foreign business enterprises owned less than 20 percent, report at cost. 37. Total assets Balances close FY 2002 Bil. Mil. Thojs. ,Do ls. 38. Total liabilities 39. Total owners' equity — Item 37 minus item 38 ^ Section B — OTHER FINANCIAL AND OPERATING DATA Amount 40. Net income (loss) — After provision for U.S. Federal, State, and local income taxes Bil. Thous. Dols. 41. Total employee compensation for FY 2002 — Employees' gross earnings (before payroll deductions). Include all direct and in-kind payments by the employer to employees, and employer expenditures for all employee benefit plans, including those required by statute, such as employer's Social Security taxes, those resulting from collective bargaining contracts, and those that are voluntary. Base compensation data on payroll records. The employee compensation data must cover activities that were charged as an expense on the income statement, charged to inventories, or capitalized during the reporting period. DO NOT include data related to activities of a prior period, such as those capitalized or charged to inventories in prior periods. Employee compensation is defined more fully in instruction 17b on page 16 at the back of this form. 42. Expenditures for property, plant, and equipment for FY 2002 — Include expenditures for land, mineral rights, plant, equipment, and other property, wherever carried on the balance sheet. Include the net book value of transfers in, and capitalized and expensed exploration and development expenditures. Do not include expenditures made in prior years that are reclassified in the current year. Do not net sales, other dispositions, or other charges against expenditures. 43. Research and development (R&D) expenditures for R&D performed by the U.S. affiliate — All R&D performed BY the U.S. affiliate for its own account or for others, including the foreign parent and foreign affiliates of the foreign parent. Exclude the cost of all R&D funded by the U.S. affiliate but performed by others, such as the U.S. affiliate's allocated share of R&D performed by the foreign parent or foreign affiliates of the foreign parent. Include all costs incurred in performing R&D, including depreciation, amortization, wages and salaries, taxes, materials and supplies, overhead — whether or not allocated to others — and all other indirect costs. R&D is defined more fully in instruction 20 on page 16 at the back of this form. U.S. Trade in Goods (exports and imports) NOTE — Report trade in goods on a "shipped basis." The "charged basis" may be used only if there is no material difference between it and the "shipped basis." U.S. trade in goods (exports and imports) is discussed more fully in instructions 44-45 on page 18 at the back of this form. 44. TOTAL EXPORTS, INCLUDING CAPITAL GOODS - Shipped by U.S. affiliate to foreign persons (valued f.a.s. U.S. port) in the FY that ended in calendar 2002. ■ 45. TOTAL IMPORTS, INCLUDING CAPITAL GOODS - Shipped to U.S. affiliate by foreign persons (valued f.a.s. foreign port) and received in the FY that ended in calendar year 2002. 46. Acres of land owned — Number of acres of all U.S. land owned at close of FY 2002 wherever carried on the balance sheet. Include acres of land on capital lease from others. Exclude acres of mineral rights if you do not own the land. Number 47a. Did the ownership (both direct and indirect) by ALL foreign parents in the voting securities (or an equivalent interest) of this U.S. affiliate EXCEED 50 percent as of the end of the U.S. affiliate's fiscal year that ended in calendar year 2002? 1101 1 D Yes - Answer items 47b through 47e. ' 2 D No - Skip to item 48. NOTE: Complete items 47b through 47e ONLY if item 47a is answered "Yes. 47b. Certain realized and unrealized gains (losses), before income tax effect included in item 40, net income (loss). Details of what to include on this line are found in instruction 47b on page 18 at the back of this form. Amount (1) Bil. Mil. Thous. Dols. 47c. Income taxes — Provision for all U.S. Federal, State, and local income taxes. Include income tax effect on amount reported in 47b above. Exclude production royalty payments. Interest 47d. Interest income from all sources (including foreign parents and affiliates), after deduction of taxes withheld at the source. Do not net against interest expense (item 47e>. 47e. Interest expense plus interest capitalized, paid or due to all payees (including foreign parents and affiliates), before deduction of U.S. tax withheld by the affiliate. Do not net against interest income (item 47dl. BEA USE ONLY Remarks Page 4 FORM BE-12ISF) (REV. 12/2002) 267 M^trU SELECTED FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE - Continued Report all amounts in thousands of U.S. dollars. P Section C — SCHEDULE OF EMPLOYIVIENT AND PROPERTY, PLANT, AND EQUIPMENT, ^ BY LOCATION. Complete the schedule below for the five primary States, etc. in which the U.S. affiliate has reportable data. If the U.S. affiliate has activities in more than five States, report those five States for which the gross book value of all land and other property, plant, and equipment (column (5)) is largest. If column (5) is zero or insignificant, use the number of employees at the close of fiscal year 2002 (column (3)), to determine the five primary States. In column (3), include all employees on the payroll at the end of the fiscal year that ended in calendar year 2002, including part-time employees. A count taken at some other date during the reporting period may be given provided it is a reasonable proxy for the number on the payroll at the end of the fiscal year. Reporting employment (including how to report when employment is subject to unusual variations) is discussed in more detail in instruction 17a on page 16 at the back of this form. In column (4), include all employees on the payrolls of operating manufacturing plants in the State. Include administrative office and other auxiliary employees located at an operating plant and that serve only that plant. Exclude all other employees on the payrolls of administrative offices or other auxiliary units. Administrative office and other auxiliary employees are defined in item 55 below. In column (5), include land and other property, plant, and equipment items, whether carried as investments, in fixed asset accounts, or in other balance sheet accounts. Include land held for resale, held for investment purposes, and all other land owned. Include land and other property, plant, and equipment on capital lease from others, but exclude that on capital lease to others. Include property you own that you lease to others under operating leases. Value land and other property, plant, and equipment at historical cost before any allowances for depreciation or depletion. In column (6), include the gross book value of commercial property you own, and commercial property you use or operate that is leased from others under a capital lease. Commercial property includes ALL buildings and associated land leased or rented to others under operating leases. Commercial property includes 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. Include the value of land associated with these buildings. Include office buildings and associated land owned by industrial companies NOT located at industrial sites. Exclude furniture and equipment located at commercial property. Exclude property you use for agricultural, mining, manufacturing, or other industrial purposes, property you use to support these activities, such as research labs and warehouses, and office buildings located at industrial sites. Also exclude educational buildings, hospital and institutional buildings, and all undeveloped land. STATE - Enter name If applicable, enter name of U.S. territory or possession, or U.S. offshore oil and gas sites, on the lines below. Additional instructions for 48-54 are found on page 19 at the back of this form. BEA USE ONLY Number of employees at close FY 2002 (3) Number The portion of employees in column (3) that are manufacturing employees (4) Number Gross book value (historical cost) of all land and other property, plant, and equipment wherever carried on balance sheet, FY 2002 closing balance. (5) Bil. Mil, Thous. The portion of column (5) that is commercial property (6) Mil. Thous. 48. 49. 50. 51. 52. 53. Employment and property, plant, and equipment not accounted for above — Items 48 through 52 all must have entries if you are to report amounts on this line. 54. 55? TOTAL — Sum of items 48 tlirough 53 Number of employees included in line 54 column 3 that are on the payrolls of administrative offices or other auxiliary units - Include employees at corporate headquarters, central administrative, and regional offices located in the U.S. that provide administration and management or support services for the consolidated U.S. affiliate. Support services include accounting, data processing, legal, research and development and testing, and warehousing. Also include employees located at a U.S. operating unit that provide administration and management or support services to more than one U.S. operating unit. Do not include employees located at a U.S. operating unit that provide administration and management or support services for only the operating unit at which they are located. Number 56. Is any data reported in line 53 columns (3) through (6)? 2761 ' 1 D Yes - Go to 57. 2 n No - Skip to Part III on page 7 57. Is item 47a on page 4 answered "Yes?" 2762 ' 1 n Yes - Skip to Part III on page 7, 2 n No - Go to page 6. complete the Supplemental Schedule of Employment and Property. Plant and Equipment. By Location, then continue with Part III on page 7. Remarks FORM BE-12(SF) (REV. 12/20021 Page 5 268 SELECTED FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE - Continued Report all amounts in thousands of U.S. dollars. SUPPLEMENTAL SCHEDULE OF EMPLOYMENT AND PROPERTY, PLANT, AND EQUIPMENT, BY LOCATION I NOTE: Complete this supplemental schedule ONLY if item 57 is answered "No. " \ If item 57 is answered "No, " complete the supplemental schedule below to allocate the amounts reported on page 5, item 53 columns (3) through (6) to the next five primary states, etc. (i.e., states etc. not already reported on lines 48 through 52) in which the U.S. affiliate has reportable data. If the U.S. affiliate has activities in more than five additional states, report those next five primary states for which the gross book value of all land and other property, plant and equipment (column (51) is largest. If column (5) is zero or insignificant, use the number of employees at the close of fiscal year 2002 (column (3)), to determine the next five primary states. STATE - Enter name If applicable, enter name of U.S. territory or possession, or U.S. offshore oil and gas sites, on the lines below. Additional instructions for 58-64 are found on page 19 at the back of this form. (1) BEA USE ONLY (2) Number of employees at the end of FY 2002 (3) Number The portion of employees in column (3) that are manufacturing employees (4) Number Gross book value (historical cost) of all land and other property, plant, and equipment wherever carried on balance sheet, FY 2002 closing balance (5) Bil. Mil. Thous. The portion of column (5) that is commercial property (6) Bil. Mil. Thous. 58. Enter amounts from item 53 columns (3) through 161. Each column must equal the amount reported in item 53 for the same column, and also the sum of items 59 through 64. 59. 60. 61. 62. 63. 64. Employment and property, plant, and equipment still not accounted for above in items 59 through 63 — Items 59 througt^ 63 all must have entries if you are to report amounts on this line. Remarks Page 6 FORM BE-12(SF) IREV. 12/20021 269 INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT AND BETWEEN U.S. AFFILIATE AND FOREIGN AFFILIATES OF THE FOREIGN PARENT (FAFP) File a separate Part III to report each direct and indirect voting interest held by a foreign parent, in the affiliate, at anytime during the affiliate's fiscal year that ended in calendar year 2002. Use this Part III to report the foreign parent with the largest direct voting interest at year-end. If a foreign parent held both a direct and an indirect interest, in the affiliate, file a separate Part III to report each voting interest. Use photocopies of this Part III to report all additional direct or indirect voting interests, held by foreign parents, in the affiliate. At the top of each Part III, enter the name of the U.S. affiliate shown in item 1 and primary employer identification number shown in item 4, of this Form BE-12(SF). Do not duplicate positions in, or transactions with, the U.S. affiliate when more than one Part III is filed. Section A — IDENTIFICATION OF FOREIGN PARENT AND ULTIMATE BENEFICIAL OWNER 65. Number of Part Ill's filed by the U.S. affiliate — If there is only one, enter "1." BEA USE ONLY Control number 66. Name of foreign parent reported in this Part III. 67. For the foreign parent named in item 66, this Part III is being used to report — Mark (X> one 3012 1 lJ a direct interest in the U.S. affiliate (as reported in items 25 and 26) 3013 1 EH an indirect interest in the U.S. affiliate (as reported in items 27 and 28) 68. If item 67a is marked — Give percent of — a. voting interest owned b. equity interest owned Close FY 2002 (1) . % Close FY 2001 (2) 0/ "Voting interest" and "equity interest" are defined in instruction 68 on page 19 at the back of this form. If the U.S. affiliate is a partnership, or Limited Liability Company, also see instructions 22b and 22c on pages 16 and 17 at the back of this form. NOTE — Sum of item 68a of all Part Ill's must equal the sum of items 25 and 26. 69. Country in which foreign parent named in item 66 — a. is incorporated or organized, if a business enterprise, or is a resident, if an individual b. is located, if a business enterprise and the country is different from that in item 69a BEA USE ONLY 3016 1 3017 1 70. Industry code of foreign parent named in item 66 — For a foreign parent that is a business enterprise, determine the industry code based on the primary activity of the single entity named as the foreign parent in item 66. DO NOT determine the industry code based on the foreign parent's world-wide consolidated sales. For an individual, enter code "05 " -Secure industry code from list on page W. NOTE ► Information regarding the ultimate beneficial owner (UBO) in items 71 through 75 is essential; failure to complete these items will constitute an incomplete report, which will be returned for completion. Identifying the UBO as "bearer shares" is not an acceptable response. The U.S. affiliate must pursue the identification of the UBO through the managing directors of the entity that issued the bearer shares, or any other officials or intermediaries. 71 . Is the foreign parent named in item 66 the UBO? (Foreign parent and UBO are defined in items III. and IIQ. on page 7 of the Instruction Booklet.) 1 D Yes — SKIP to Item 75. 2 LJ No — Continue with item 72. 72. Is the UBO an individual, or an associated group of individuals? (Associated group is defined in item II. D. on page 6 of the Instruction Booklet.) 1 LJ Yes — A name need not be given in item 73, but item 74 must be completed for the individual(s). 2LJ No — Continue with item 73. 73. Name of UBO 3021 1 74. Country of UBO named in item 73, or country of the individuaKs) if the answer to item 72 was "Yes." BEA USE ONLY 3022 1 75. Industry code of UBO — For a UBO that IS a business enterprise, determine the industry code for the primary activity of the UBO based on the UBO's world-wide consolidated sales. For an individual, enter code "05. " -Secure industry code from list on page 10. Remarks FORM BE-I2ISFI (REV. 12/2002) Page 7 270 INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT AND BETWEEN U.S. AFFILIATE AND FOREIGN AFFILIATES OF THE FOREIGN PARENT (FAFF) — Continued NOTE ► 1 . Data reported in Sections B, C, D, and E must be for the fully consolidated U.S. affiliate. The consolidation rules are found on page 15 at the back of this form. 2. If item 67a is marked, complete all items 76 through 94. If item 67b is marked, report any direct transactions or positions between the U.S. affiliate and the foreign parent or FAFP in items 76, 77, and 88 through 92. Do not duplicate data reported on other Part Ill's. k Section B — INVESTMENT BETWEEN U.S. AFFILIATE AND FOREIGN PARENT NAMED IN ITEM 66, AND BETWEEN U.S. AFFILIATE AND FAFP Report amounts according to the books of the U.S. affiliate. Additional instructions for items 76 and 77 are found on page 19 at the back of this form. 76. Liabilities owed by U.S. affiliate to foreign parent named in item 66 and to FAFP — current and long-term. 30. CLOSING BALANCE FY 2002 (1) Bil. Mil. Thous. Dols. FY 2001 (2) Bil. Mil. Thous. Dols 77. Receivables due to U.S. affiliate from foreign parent named in item 66 and from FAFP — Current and long-term. Include certificates of deposit and other deposits of the U.S. affiliate (that would otherwise be included in cash on your balance sheet) held by the foreign parent and FAFP. • OWNERS' EQUITY ITEMS — Foreign parent's equity in — 78. Capital stock and additional paid-in capital — Common and preferred, voting and non-voting capital stock and additional paid-in capital. 79. Retained earnings (deficit) 80. Other, including accumulated other comprehensive income and treasury stock — Specify major items ^ . FOREIGN PARENT'S SHARE OF TOTAL OWNERS' EQUITY OF INCORPORATED OR UNINCORPORATED U.S. AFFILIATE — 81. Sum of items 78 through 80 for incorporated U.S. affiliates and those unincorporated U.S. affiliates for which this breakdown is available. For those unincorporated U.S. affiliates that cannot provide a breakdown for items 78 through 80, report foreign parent's share of total owners' equity reported in item 39. 3063 BEA USE ONLY Dl position ^ Section C — CHANGES IN EQUITY HOLDINGS IN THE U.S. AFFILIATE BY THE FOREIGN PARENT NAMED IN ITEM 66 Report transactions, during the fiscal year that ended in calendar year 2002, by the foreign parent named in item 66 that changed its equity holdings in the U.S. affiliate. Exclude changes caused by carrying net income to the equity account, the payment of stock or cash dividends (other than liquidating dividends), or the distribution of earnings during the period. Exclude the effect of treasury stock transactions with persons other than the foreign parent and reorganizations in capital structure that do not affect total equity. REPORT ALL AMOUNTS AT THE TRANSACTION VALUE, i.e., the value of the consideration given or received by the foreign parent for the increases or decreases in the foreign parent's equity holdings in the U.S. affiliate. See additional instructions for items 82 and 83 on page 19 at tl^e bacl< of tl^is form. 82. Increase by foreign parent of equity interest in U.S. affiliate Amount (1) BiL Mil Thous. 'DoIs. -+- 83. Decrease by foreign parent of equity interest in U.S. affiliate - Include liquidating dividends. 84. TOTAL — Equals item 82 minus item 83 • For item 84, enter the amounts by which the transaction value — 85. exceeds the value carried on the books of the U.S. affiliate For acquisition (1) For liquidation or sale (2) Bil. Mil. Thous. Dols. Bil. Mil. Thous. | Dols 86. is less than the value carried on the books of the U.S. affiliate Remarks Pages FORM BE.12(SF) (REV, 12/2002) p:fflilH 271 INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT AND BETWEEN U.S. AFFILIATE AND FOREIGN AFFILIATES OF THE FOREIGN PARENT (FAFP) — Continued Section D — PAYMENTS AND RECEIPTS OF DIVIDENDS, DISTRIBUTED EARNINGS, INTEREST, ROYALTIES AND LICENSE FEES, AND OTHER SERVICES BETWEEN U.S. AFFILIATE AND FOREIGN PARENT AND BETWEEN U.S. AFFILIATE AND FAFP Enter amounts received, paid, or entered into intercompany accounts, whichever occurred first. Include amounts for which payment was made in kind. For an item entered into an intercompany account prior to the reporting period, do not report any subsequent settlement of the account in the items below. Reflect such settlements only as reductions in an intercompany account (items 76 and 77). 87. Dividends or distributed earnings — Dividends on common and preferred stock, of incorporated U.S. affiliate, or distributed earnings of unincorporated U.S. affiliate, excluding stock and liquidating dividends. 3o Net payments or credits by U.S. affiliate to foreign parent and FAFP (after deduction of U.S. tax withheld) (1) Bil. Mil. Thous. Dols. Net receipts by or credits to U.S. affiliate from foreign parent and FAFP (after deduction of foreign tax withheld) (2) Bil. Mil. Thous. Dols 88. Interest — Include interest on capital leases. 89. Royalties, license fees, and other fees for the use or sale of intangible property. See instruction for item 89 on page 19 at ttie baclt of this form. 90. Charges for use of tangible property — Include rentals for operating leases of one year or less and net rent on operating leases of more than one year. Net rent is equivalent to the total lease payment less the return of capital (depreciation) component. Include film and television tape rentals. See instruction for item 89 on page 19 at tite bacl< of ttiis form. 91. Allocated expenses and sales of services — Include: (1) allocated expenses or reimbursements for management, professional, technical, or other services that would normally be included in "other income" in the income statement of the provider of the service and (2) payments by the U.S. affiliate to, or receipts by the U.S. affiliate from, the foreign parent and FAFP for services that are separately billed and that would normally be included in gross operating revenues of the seller of the service (item 31 through 36, column 2, of this form for the U.S. affiliate). Telecommunications carriers should not include payments and receipts for message telephone services. Report data for these services on Form BE-20 (Benchmark) or BE-22 (Annual) Survey of Selected Services Transactions with Unaffiliated Foreign Persons. Additional instructions for items 91 and 92 are found on pages 19 and 20 at the bacl< of this form. 92 NOTE: Complete item 92 ONLY if item 91, column 1 or 2, has an entry Allocated expenses and sales of services by type — Enter the service number, from the chart below, which represents the predominant type of service reported in item 91. Additional instructions are found on pages 19 and 20 at the back of this form. Service number Service number Type of service 1 Insurance 2 Financial 3 Transportation 4 Computer and information 5 Management, consulting, and public relations 6 Research, development, and testing 7 All other 93. BEA USE ONLY Section E — FOREIGN PARENT'S EQUITY IN U.S. AFFILIATE'S NET INCOME 94. Foreign parent's direct equity in U.S. affiliate's net income (loss) after provision for U.S. Federal, State, and local income taxes - Enter the foreign parent's share of item 40 based on the foreign parent's direct equity in the U.S. affiliate during FY 2002. Amount (1) Bil. Mil. Thous. Dols BEA USE ONLY 2 3 4 2 3a Remarks FORM BE-12(SF) (REV. 12/2002) Page 9 272 FOREIGN PARENT AND UBO INDUSTRY CODES 01 Government and government-owned or -sponsored enterprise, or quasi-government organization or agency 02 Pension fund — Government run 03 Pension fund — Privately run 04 Estate, trust, or nonprofit organization (that part of 5252 tliat is estates and trusts) 05 Individual Private business enterprise, investment organization, or group engaged in: 06 Insurance (2002 ISI codes 5242, 5243, 5249) 07 Agriculture, forestry, fishing, and hunting (2002 ISI codes 1110-1140) 08 Mining (2002 ISI codes 211 1-2127) 09 Construction (2002 ISI codes 2360-2380) 10 Transportation and warehousing (2002 ISI codes 4810-4939) 11 Utilities (2002 ISI codes 2211-2213) 12 Wholesale and retail trade (2002 ISI codes 4231-4251 and 4410-4540) 13 Banking, including bank holding companies (2002 ISI codes 5221 and 5229) 14 Holding companies, excluding bank holding companies (2002 ISI codes 5512 and 5513) 15 Other finance (2002 ISI codes 5223, 5224, 5231-5238, that part of 5252 that is not estates and trusts, and 5331) 16 Real estate (2002 ISI code 5310) 17 Information (2002 ISI codes 5111-5191) 18 Professional, scientific, and technical services (2002 ISI codes 5411-5419) 19 Other services (2002 ISI codes 1150, 2132, 2133, 5321, 5329, and 5611-8130) Manufacturing, including fabricating, assembling, and processing of goods: 20 Food (2002 ISI codes 31 1 1-3119) 21 Beverages and tobacco products (2002 ISI codes 3121 and 3122) 22 Pharmaceuticals and medicine (2002 ISI code 3254) 23 Other chemicals (2002 ISI codes 3251-3259, except 3254) 24 Nonmetallic mineral products (2002 ISI codes 3271-3279) 25 Primary and fabricated metal products (2002 ISI codes 3311-3329) 26 Computer and electronic products (2002 ISI codes 3341-3346) 27 Machinery manufacturing (2002 ISI codes 3331-3339) 28 Electrical equipment, appliances, and components (2002 ISI codes 3351-3359) 29 Motor vehicles and parts (2002 ISI codes 3361-3363) 30 Other transportation equipment (2002 ISI codes 3364-3369) 31 Other manufacturing (2002 ISI codes 3130-3231, 3261, 3262, 3370-3399) 32 Petroleum manufacturing, including integrated petroleum and petroleum refining without extraction (2002 ISI codes 3242-3244) Page 10 form be i2(Sfi (Rev, 12/2002) 273 ii Ci ^ OJ , ; LU e s ":;£ n>-s s s 1 :fdi rest U.S oft U.S. nea Q. aj '^'^ —^ S '^ -fi^ -3 1 Per con tem holi col U) UO CO .2:^ o o OJ o o o 03 O 0) o Q) O o t: Q_ 1 Has affil been not of obligati file? Mark m (41 :^ z: >- z: DD DD DD > 2 DD > 2 DD 7- CM DD >■ ^ DD ^ CM DD .- CM □ D -- C\J e -Q ■* ■^ ■^ 'S- 1 -3- ■* ■* ^ ■^ 'J B E _c ^ c C 5 g > o TO -J Z o lU OJ ;p tf3 =} £ >- < fO o OJ UI m en £ CO Q. E i -^ c E a LLICO CO- 'o S« COMME ■MIC ANAL you may I U.S. affiliat street, c/t)', (31 Oz ™ 1— -g ^- "O S| m^ O E fO ° g So Ui <^ "o Q> 3; 1-3 OC Q- c <2 Q = o •5S CJ TZt a-a: " w rf =.. 3 «/> " " < ™ o ^ X S> "OJ ^-^ c Q - — DATE ATED comple nges. - £- TO ™ . „ „ „ „ . . . . „ . ^ OJ JQ o5 O J = " ^ CD ONS NSOl , in lie other £ ^ oo Co t«o a« ■— o <> 2^ g — CJ . . . — * ^ -^ UJ _l ^ w — O r- 3 LU oj c= ■= < £ CQ -O J-? tn AFFIL ENOT our 2001 dditions -C CD i E occ ^"^ tj "^ z<-bS ^ '^ ^ tn Px g" " o :5.^ tCO m 5 iS .^ -^"^ REPO TWHI ement 1 t to she X3 — = 1 03 2 f^ uT — ^ o UJ3 Q-g en c £ w> XBQ °-S V^ (O - — CHT EST tofSi er prii LU ,-^ IS en (J 1! xElt o T U- LU CT3 CQ 03 j2 002) ATES IN W RSHIP INT omputer prin ent B or com ^ — E « nj ■ — l5 ^ 5^ ^% to tS Sg: - i d) C/) Qj <^ o — E => IS _§■£ iJ d a° -g => 35== II £,■§ z o •^0 ^ uj ;= N — "■ « — r-r^ ' 1^ 3 1 o LU Q. ^ 2 i; ^ cn=J ^ (N m ^ in to ^ CO U) o _ O^ CD <£> iO 0- 0^ 0- 0- =5 o5 □5 ■ Li^(2^ 1 £ So -" '. c Help's . cn_> — o c Jg |||g|| _ .i-i S^ls — en cn^ O -^ 1J c -S^c/i t>iS ^ S ^ = " o S ~ -Sc/i^S- — ^Ei Q. o ■= S 1 1 1 1 1 1 1 1 1 1 1 1 1 ll"i in in in 10 in in in in tn in ID in in o a."^ ^ 2? ■=.2? <= £ y) U5 CO v> C/) rtJ i— o '^ Q> CD 0) CD oj CD 0) 0) 0) OJ CD CD >" 2 > 2 :^ 2 >• 2 >- 2 > z: > 2 > 2: > 2: > ^ V 2: > 2 >■ 2 DD DD DD DD DD nn DD DD DD DD DD DD DD 5|l i ^ IM 7- tM T- OJ .- CM 7- (M T- (M ^ CM ^ C\J - (M o ■* ^ •^ ^ -* ^ ■^ ^ ^ "tt ■a- ■3- ■3- 1= "S £r'^ 3 — ' oQ; '"■KJ S -o -o '^ E a; -b<5 T3 < l< c 5; •a "i a> s-t 3 "O Ci _C "5 CO '^ c o 11 U 1 M .^ o Ul 1- =t W) < u-i ■£ _l zJlc u. u. 1_> 4- < ai || 3 _ra. u. O 1- (A —1 1 CN O o (N CO i-M rM C-J r., rM r^ tsj rs rs) rN c^ CJ fS. c HI E _a> Q. > a. 3 —1 z UJ 3 u. w < (M UJ CO Ul CO Example — If the fiscal year ended on March 31, report for the 12 month period ended March 31, 2002. Month Day Year 5. Did the U.S. business enterprise become a U.S. affiliate during its fiscal year that ended in calendar year 2002? 1008 1 I I Yes If the answer is "Yes" — Enter date tJ.S. 1 2 I ^ Mf, business enterprise became a U.S. affiliate and see instruction 5 on page 12 at the back of this form. Month Day Year NOTE — For a U.S. business enterprise that became a U.S, affiliate during its fiscal year that ended in calendar year 2002, leave the close FY 2001 data columns blank. 6. Is the U.S. affiliate named in item 1 above separately incorporated in the United States, including its territories and possessions? IVIark IXI No" if the U.S. affiliate is a branch or agency of a foreign bank. 1011 1 I I Yes ' 2nNo PENALTIES — Whoever fails to report shall be subject to a civil penalty of not less than $2,500, and not more than $25,000, and to injunctive relief commanding such person to comply, or both. Whoever willfully fails to report shall be fined not more than $10,000 and, if an individual, may ho imnriCnnoH fnr nnt mnrci than i-inci i/oar nr hr^fh Ann nffifor rf'irantr\r c,rr\t-,li-\\iaa nr onont nf be imprisoned for not more than one year, or both. Any officer, director, employee, or agent of any corporation who knowingly participates In such violations, upon conviction, may be punished by -'■'-- '■ — ■ — ■ *_- u„*u c-.- . -...■-• . .. ■ .r. .■ . . . . _ . ,, _. of this form dny LUipuidiiuii wiiu KMUWiiiyiy pdiuuipdiyb in bucn vioi , _, , , „_ punished by a like fine, imprisonment or both. See additional information on page 1 1 at the back PERSON TO CONSULT CONCERNING QUESTIONS ABOUT THIS REPORT — Enter name and address Name lOOO Address I 2 I Nun CERTIFICATION — The undersigned official certifies that this report has been prepared in accordance with the applicable instructions, is complete, and is substantially accurate except that, in accordance with instruction III.G. on page 8 of the Instruction Booklet, estimates may have been provided. Authorized official's signature Date TELEPHONE NUMBER 1 Area code JH Extension Print or type name and title I 5 I Nun FAX NUMBER 4 Area code Telephone number FAX number May we use e-mail to correspond with you to discuss questions i i — , relating to this Form BE-12 BANK, including questions that may ^°27 ^ \ | yes — If yes. please contain information about your company that you may consider provide your confidential? (Note that electronic mail is not inherently confidential; e-mail address we will treat information we receive as confidential, but your e-mail "■ « I 1 . , is not necessarily secure against interception by a third party.) ^ — ' ^ E-mail address 284 IDENTIFICATION OF U.S. AFFILIATE — Continued Ownership — Enter percent of ownership, to a tenth of one percent, based on voting stock if an incorporated affiliate or an equivalent interest if an unincorporated affiliate, in this U.S. affiliate. Ownership held directly by all foreign parents of this affiliate — Give name of each foreign parent (if more than 2, continue on a separate sheet). A branch or agency of a foreign bank is considered to be 100.0% directly held by its foreign parent (home office). REPORTING PERIOD Close FY 2002 (1) Close FY 2001 (2) 8. Ownership held directly by all U.S. affiliates of the foreign parents — Give name of each U.S. affiliate (if more than 2, continue on a separate sheet). 9. 10. 1 1 . Ownership held directly by all other persons (do not list names) TOTAL of directly held voting ownership interests — Sum of items 7 through 1 1 - 100.0% 100.0% 12. Number of U.S. affiliates consolidated (or, in the case of branches/agencies, aggregated) in this report — U.S. branches and agencies, directly owned by the foreign parent , that are aggregated on this report should be counted separately and listed separately on the Supplement A to this form. See Example A under instruction 2 on page 1 1 at the back of this form. U.S. branches and agencies, owned by a U.S. bank affiliate , should be consolidated on this report but not counted separately and not listed separately on the Supplement A to this form. See Example B under instruction 2 on page 1 1 at the back of this form. If number is greater than one, complete the Supplement A. Industry classification of fully consolidated U.S. affiliate (based on sales or gross operating revenues) — Enter the 4-digit international surveys industry (ISI) code(s) and the sales or gross operating revenues associated with each code. If you use fewer than four codes, you must account for total sales or gross operating revenues in items 13a, 13b, and 14. For a full explanation of each code, seethe Guide to Industry and Foreign Trade Classifications for International Surveys, 2002. Include interest revenues at gross amounts. DO NOT net interest revenues against interest expenses. For an inactive affiliate, show the industry classification(s) based on its last active period; for "start-ups" with no sales, show the intended activity(ies). Include revenues generated during the year from the operations of a discontinued segment. However, DO NOT include gains or losses on DISPOSALS of discontinued operations. Report such gains or losses in item 30 (certain realized and unrealized gains (losses) included in the determination of total income). NOTE: To file on Form BE-12 BANK, you must engage in activities associated with ISI codes 5221 and/or 5229. If you do not engage in those activities, see the reporting requirements. Instruction Booklet, pages 5 and 6, for Forms BE-12(LF), BE-12(SF), and BE-12(X), to determine which form to file. 13a. Depository credit intermediation (Banking) ISI code (1) 5221 Sales or gross operating revenues (2) Bil. Mil. Thous. Dols, 13b. Non-depository branches and agencies 5229 14. Enter other code with largest sales or gross operating revenues 15. Enter other code with next largest sales or gross operating revenues 16. Sales or gross operating revenues not accounted for above 1 7. TOTAL SALES OR GROSS OPERATING REVENUES — Equals sum of items 13 through 16, column 2 -^ 1174 BEA USE ONLY &f.- .■-,- -SERVICES Report in items 18 through 20 that portion of total sales or gross operating revenues, included on line 17 column 2, that represents income from the provision of services. Include EXPLICIT FEES AND COMMISSIONS received for services rendered. DO NOT INCLUDE interest and dividend receipts, or trading income from buying and reselling financial instruments. 18. Sales of services, total- must equal sum of items 19 and 20 22* Amount (1) iil. Mil. Thous. Dols. 19. To U.S. persons 20. To all other persons 2242 $ INSURANCE ACTIVITIES - Premiums earned and losses incurred Insurance related activities are covered by industry codes 5242 (agencies, brokerages, and other insurance related activities), 5243 (insurance carriers, except life insurance carriers), and 5249 (life insurance carriers). 21a. Of the total sales and gross operating revenues included on line 17, column 2, were any of the sales or gross operating revenues generated by insurance related activities? 1180 1 D Yes - Answer items 21b and 21c ' 2 n No — Skip to Item 22 NOTE: Complete items 21b and 21c ONLY if item 21a is answered "Yes." 21b. Premiums earned — Calculate as premiums written during the year, plus unearned premiums at the beginning of the year, minus unearned premiums at the end of the year. Amount (1) Bil. Mil. Thous. Dols. 21c. Losses incurred — For property and casualty insurance, calculate as losses paid during the year, plus the net increase (or minus the net decrease) during the year in case reserves and in losses incurred but not reported. For life insurance, losses reflect policy claims on reinsurance assumed or ceded, or on primary insurance sold, adjusted for changes in claims due, unpaid, and in course of collection. For both types of insurance, do not include loss adjustment expenses. "82 Page 2 FORM BE-12 BANK (REV. 12/2002) W Sectioi 285 SELECTED FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE Report all amounts in thousands of U.S. dollars. Section A — BALANCE SHEET ITEMS — Report income or losses accumulated at a Branch or Agency, but not yet remitted or reimbursed, as part of owners' equity, not as receivables or payables. If you are a Branch or Agency, do not net out liabilities and receivables to related parties. Report on the basis of audited statements, or internal books if an independent audit is not performed. Do not report on the basis used for the Call Reports to the Federal Reserve (FFIEC-002 or FFlEC-032). NOTE — Report equity investment in unconsolidated U.S. affiliates and all foreign business enterprises owned 20 percent or more (including those that are majority-owned) on an equity basis to include equity in undistributed earnings since acquisition; for U.S. affiliates and foreign business enterprises owned less than 20 percent, report at cost. 22. Total assets 21 BALANCES Close FY 2002 (II Bil. Mil. Thous. Dols, Close FY 2001 (Unrestated) (2) Bil. IVlil. Thous. Dols. 23. Total liabilities • OWNERS' EQUITY ITEMS — Unincorporated affiliates see additional instructions for 24-28 on page 12 at the back of this form. 24. Capital stock (common and preferred, voting and non-voting), contributed capital, and additional paid-in capital 25. Retained earnings (deficit) 26. Accumulated other comprehensive income (loss) 26a. Translation adjustment component 26b. All other components Close FY 2002 (1) Bil. Mil. Thous. Dols. Close FY 2001 (Unrestated) (2) "iik iviiL Thous. I Dols, 26c. Total accumulated other comprehensive income (loss) - Equals sum of 26a and 26b. 27. Other, including treasury stock — Specify major items -^ 28. TOTAL — Sum of items 24, 25, 26c, and 27, also equals item 22 minus item 23 -► 2133 ^ Section B - OTHER FINANCIAL AND OPERATING DATA • INCOME 29. Total income — Include — a. Sales or gross operating revenues included on page 2, item 17, column (2); b. Income from equity investments in unconsolidated U.S. affiliates and foreign affiliates owned by the U.S. affiliate; c. Certain realized and unrealized gains (losses); and d. Other income. Amount (1) Bil. Mil. Thous. 'Dols, 30. Certain realized and unrealized gains (losses) included in the determination of total income — Report all amounts before income tax effect. Also see instruction 30 on page 12 at the back of this form. Include gains (losses) resulting from — a. Sale or disposition of investment securities, and FAS 115 impairment losses. Dealers in financial instruments (including securities, currencies, derivatives, and other financial instruments) and finance and insurance companies, see special instructions on page 12 at the back of this form; b. Sale or disposition of land, other property, plant and equipment, or other assets, and FAS 144 impairment losses. DO NOT include gains or losses from the sale of inventory assets in the ordinary course of trade or business. Real estate companies, see special instructions on page 12 at the back of this form; c. Goodwill impairment as defined by FAS 142; d. Restructuring. Include restructuring costs that reflect write downs or writeoffs of assets or liabilities. DO NOT include actual payments, or charges to establish reserves for future actual payments, such as for severance pay, and fees to accountants, lawyers, consultants, or other contractors; e. DISPOSALS of discontinued operations. DO NOT include income from the operations of the discontinued segment. Report such income as part of your income from operations on lines 13 through 17; f. Remeasurement of the U.S. affiliate's foreign currency-denominated assets and liabilities due to changes in foreign exchange rates during the reporting period; and g. Extraordinary, unusual, or infrequently occurring items that are material. Include losses from accidental damage or disasters, after estimated insurance reimbursement. Include other material items, including writeups, write downs, and writeoffs of tangible and intangible assets; gains (losses) from the sale or other disposition of capital assets; and gains (losses) from the sale or other disposition of financial assets, including securities, to the extent not included above. 2151 31 . Net income (loss) — After provision for U.S. Federal, State, and local income taxes. 32. Total employee compensation for FY 2002 — Employee's gross earnings (before payroll deductions) including wages, salaries, and employee benefit plans. Employee compensation is defined in more detail in instruction 32 on pages 12 and 13 at the back of this form. Interest 33. Interest income from all sources (including foreign parents and affiliates), after deduction of taxes withheld at the source. Do not net against interest expense (item 34.1 34. Interest expense plus interest capitalized, paid or due to all payees (including foreign parents and affiliates), before deduction of U.S. tax withheld by the affiliate. Do not net against interest income (item 331. BEA USE ONLY FORM BE-12 BANK (REV. 12/2002) Page 3 286 B:ffllW SELECTED FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE Report all amounts in thousands of U.S. dollars. — Continued Amount (1) ^ Section C — CHANGE IN RETAINED EARNINGS - If retained earnings is not shown as a Bil. Mil. Thous. |DoIs. separate account, show change in total owner's equity 35. Balance, close FY 2001 before restatement due to a change in the entity (i.e.. due to mergers, acquisitions, divestitures, etc.) or a change in accounting methods or principles, if any - Enter amount from item 25, column (2); if retained earnings is not sfiown as a separate account, enter amount from item 28, column !2). 2211 1 1 S 1 36. Increase (decrease) to FY 2001 closing balance resulting from restatement due to a change in accounting methods or principles, if any — Specify reasons for change^ 2212 1 1 37. FY 2001 closing balance as restated — Item 35 plus item 36. 2213 1 1 $ 38. Net income (loss) — Enter amount from item 31. 2214 1 39. Dividends or remitted earnings - Incorporated affiliate, enter amount of dividends declared, inclusive of withholding taxes, out of current - or prior-period income, on common and preferred stock, excluding stock dividends. Branches and agencies, enter amount of earnings remitted to home office. Exclude losses reimbursed by home office. Include such losses in item 40 below. 2215 1 ' 40. Losses reimbursed by home office, and other increases (decreases) in retained earnings, including stock or liquidating dividends, or, if retained earnings is not shown as a separate account, other increases (decreases) in total owners' equity, including capital contributions (return of capital). — Specify major items ^ 2217 1 41 . FY 2002 closing balance — Sum of items 37, 38, and 40 minus item 39. Must equal item 25, column IV if retained earnings is shown as a separate account: must equal item 28 column HI if retained earnings is NOT shown as a separate account. 2218 1 1 S 1 ^ Section D - CHANGE IN LOAN LOSS RESERVE, EXCLUDE LOANS TRANSFERRED TO THE FOREIGN PARENT 42. Loan loss reserve — Balance at close of FY 2001 2300 1 1 $ 1 43. Provision for loan losses — Amount charged to the loan loss reserve account during FY 2002 2301 1 ' 44. Loan losses — Amount of actual loan losses incurred during FY 2002, including direct write-offs 2302 1 1 45. Recovered losses and other adjustments — Amount of actual loan losses and other adjustments recovered during FY 2002 — Specify major items -g 2303 1 46. Loan loss reserve — Balance at close of FY 2002 — Sum of items 42, 43, and 45 minus item 44 2304 1 s k Section E - SCHEDULE OF EMPLOYMENT AND PROPERTY, PLANT, AND EQUIPMENT, BY LOCATION Complete the schedule below for the five primary States in which held for investment purposes, and all other land owned. Include the U.S. affiliate has reportable data. If the U.S. affiliate has land and other property, plant, and equipment on capital lease from activities in more than five States, report those five States for others, but exclude that on capital lease to others. Include property which the gross book value of all land and other property, plant, you own that you lease to others under operating leases. Value and equipment (column (4)) is largest. If column (4) is zero or land and other property, plant, and equipment at historical cost insignificant, use the number of employees at yearend (column before any allowances for depreciation or depletion. (3)) to determine the five primary States. In column (3). include all employees on the payroll at the end of '" column (5), report the gross book value of commercial property FY 2002, including part-time employees. A count taken at some yc^ own, and commercial property you use or operate that is other date during the reporting period may be given provided it is [eased frorp others under a capital lease Conimerc.al property a reasonable proxy for the number on the payrSlI at the end of FY includes ALL buildings and associated land leased 0; rented to 2002. Exclude home workers and independent sales personnel others under operating leases. Commercia property includes who are not employees. If employment at the end of FY 2002, or apartment buildings, office buildings, hotels, motels, and buildings the count taken at some other time during FY 2002, was unusually used for wholesale, retail, and services trades, such as shopping high or low because of temporary factors (e.g., a strike), give the centers, recreational facilities, department stores, bank buildings, number of employees that reflects normal operations. If the restaurants, public garages, and automobile service stations, business enterprise's activity involves large seasonal variations, 'nf'"''e the value of land associated with these buildings. Include give the average number of employees tor FY 2002. If given, the °^<"^, buildings and associated land owned by industrial companies average should be the average for FY 2002 of the number of NOT Icicated at industrial sites. Exclude furniture and equipment persons on the payroll at the end of each payroll period, month, located at commercial property. Exclude property you use for or quarter. If precise fiqures are not available, give your best agricultural, mining, manufacturing, or other industrial purposes, estimate f- = -^ property you use to support these activities, such as research labs and warehouses, and office buildings located at industrial sites. In column (4), include land and other property, plant, and Also exclude educational buildings, hospital and institutional equipment whether carried as investments, in fixed asset accounts, buildings, and all undeveloped land, or in other balance sheet accounts. Include land held for resale. STATE — Enter name If applicable, enter name of U.S. territory or possession on the lines below. Additional instructions for 47-53 are found on page 13 at the back of this form. BEA USE ONLY (2) Number of employees at close FY 2002 (3) Gross book value (historical cost) of all land, and other property, plant, and equipment, wherever carried on balance sheet, FY 2002 closing balance (4) The portion of column (4) that is commercial property (5) Number Bil. Mil. Thou. [DoIs. Bil. Mil. Thou, Dols. 47. 2 3 4 1 $ 1 5 1 $ 1 48. 2 3 4 ' 5 ' 49. 2 3 4 1 5 1 50. 2 3 4 5 51. 2 3 4 1 5 ' 52. Other States 3 4 1 5 1 53. TOTAL — Sum of items 47 through 52 um 2 3 4 J $ 1 5 1 $ 1 Page 4 FORIVI BE-12 BANK (REV. 12/2002) 287 INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT AND BETWEEN U.S. AFFILIATE AND FOREIGN AFFILIATES OF THE FOREIGN PARENT (FAFP) File a separate Part III to report each direct and indirect voting interest held by a foreign parent, in the affiliate, at anytime during the affiliate's 2002 fiscal year that ended in calendar year 2002. Use this Part III to report the foreign parent with the largest direct voting interest at year-end. If a foreign parent holds both a direct and an indirect interest, in the affiliate, file a separate Part III to report each voting interest. Use photocopies of this Part III to report all additional direct or indirect voting interests, held by foreign parents, in the affiliate. At the top of each Part III, enter the name of the U.S. affiliate shown in item 1 and primary employer identification number shown in item 3, of this Form BE-12 BANK. Do not duplicate positions in, or transactions with, the U.S. affiliate when more than one Part III is filed. Section A — IDENTIFICATION OF FOREIGN PARENT AND ULTIMATE BENEFICIAL OWNER BEA USE ONLY Control number 54. Number of Part Ill's filed by the U.S. affiliate — If there is only one, enter "7. 55. Name of foreign parent reported in this Part III. If the U.S. affiliate is a branch or agency of a foreign bank, report the name of the parent bank (home office) here. Government control, if any, of the foreign parent is to be reported in items 60 through 64. 56. For the foreign parent named in item 55, this Part III is being used to report — Mark IXI one 3012 1 LJ a direct equity interest in the U.S. affiliate (as reported in items 7 and 8) 3013 1 U an indirect equity interest in the U.S. affiliate (as reported in items 9 and 10) 57. If item 56a is marked — Give to a tenth of a percent — a. voting interest owned b. equity interest owned Close FY 2002 (1) Close FY 2001 (2) "Voting interest" and "equity interest" are defined in instruction 57 on page 13 at the back of this form. NOTE — Sum of item 57a of all Part Ill's must equal the sum of items 7 and 8. 58. Country in which foreign parent named in item 55 — a. is incorporated or organized, if a business enterprise, or is a resident, if an individual BEA USE ONLY is located, if a business enterprise and the country is different from that in item 58a 3016 1 3017 1 59. Industry code of foreign parent named in item 55 — For a foreign parent that is a business enterprise, determine the industry code based on the primary activity of the single entity named as the foreign parent in item 55. DO NOT determine the industry code based on the foreign parent's world-wide consolidated sales. For an individual, enter code "05". - Secure industry code from list on page 8. NOTE Information regarding the ultimate beneficial owner (UBO) in items 60 through 64 is essential; failure to properly complete these items will constitute an incomplete report, which will be returned for completion. Identifying the UBO as "bearer shares" is not an acceptable response. The U.S. affiliate must pursue the identification of the UBO through the managing directors of the entity that issued the bearer shares, or any other officials or intermediaries. 60. Is the foreign parent named in item 55 the UBO? (Foreign parent and UBO are defined in items ILL. and II. Q. on page 7 of the Instruction Booklet I 3019 1 CH Yes — Skip to item 64. 2 LJ No — Continue with item 61. 61. Is the UBO an individual, or an associated group of individuals? (Associated group is defined in item II. D. on page 6 of the Instruction Booklet) 3020 1 n Yes — A name need not be given in item 62, but item 63 must be completed for the individuaKs). 2 n No — Continue with item 62. 62. Name of UBO 63. Country of UBO named in item 62 or country of the individuaKs) if the answer to item 61 was "Yes." BEA USE ONLY 64. Industry code of UBO — For a UBO that is a business enterprise, determine the industry code for the primary activity of the UBO based on the UBO's world-wide consolidated sales. For an individual, enter code "05. " - Secure industry code from list on page 8. FORM BE-12 BANK (REV. 12/2002) Page 5 288 INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT AND BETWEEN U.S. AFFILIATE AND FOREIGN AFFILIATES OF THE FOREIGN PARENT (FAFP) — Continued NOTE w 1. Data reported in sections D, E, and F must be for ttie fully consolidated domestic U.S. affiliate. The consolidation rules are found on page 1 1 at the back of this form. 2. Data reported in section B must relate ONLY to the bank and bank holding company subsidiaries or units of the U.S. affiliate consolidated on this report. Data reported in section C must relate ONLY to the insurance, real estate, or leasing subsidiaries or units of the U.S. affiliate consolidated on this report. 3. If item 56a is marked, complete items 65 through 82. If item 56b is marked, report any direct transactions or positions between the U.S. affiliate and the foreign parent or FAFP in items 65, 66a-c, and 77a through 81. Do not duplicate data reported on other Part Ill's. 4. To avoid duplication in U.S. Government statistics, exclude from sections B and D claims and liabilities arising from the parent's and affiliate's ordinary banking business and exclude from section E receipts and payments of interest on the excluded claims and liabilities. Instead, report claims and liabilities arising from ordinary banking business and related interest receipts and payments on Treasury Department International Capital (TIC) forms. ► Section B - FOREIGN PARENT'S PERMANENT DEBT INVESTMENT IN THE BANKING OPERATIONS OF THE U.S. AFFILIATE . DEBT Report the foreign parent's "permanent" debt investment that relates ONLY to consolidated subsidiaries or units that are banks or bank holding companies. DO NOT include debt that arises from ordinary banking operations or debt that relates to insurance, real estate, or leasing subsidiaries or units. 65. Foreign parent's permanent debt investment in U.S. affiliate — Include debt that is considered to be BOTH (a) permanently invested by the foreign parent, and (b) positively identified as being used for nonbanking-type activities (e.g., debt used to acquire buildings, equipment, and other fixed assets). Exclude non-permanent debt such as ordinary bank loans or deposits. Also exclude demand and overnight accounts, debt used to fund investment activities, and debt for which the proceeds are used to meet regulatory and/or capital requirements. Close FY 2002 (1) Bil. Mil. Thous. Dols. Close FY 2001 (2) Bil. Mil. Thous. Dols, f Section C — INTERCOMPANY BALANCES BETWEEN THE INSURANCE, REAL ESTATE, AND LEASING SUBSIDIARIES OR UNITS OF THE U.S. AFFILIATE AND THE FOREIGN PARENT NAMED IN ITEM 55. AND FAFP Insurance activities are covered by industry codes 5242 (agencies, brokerages, and other insurance related activities), 5243 (insurance carriers, except life insurance carriers) and 5249 (life insurance carriers). Real estate activities are covered by industry code 5310 (real estate). Leasing activities are covered by industry codes 5321 (automotive equipment rental and leasing), 5329 (other rental and leasing services), and 5331 (lessors of non-financial intangible assets (except copyrighted works)). 66a. Does this Form BE-12 BANK include data for domestic U.S. subsidiaries or units that have insurance, real estate, or leasing activities? 3047 1 CJ Yes - ^20 No- - Answer items 66b and 66c. Skip to item 67. NOTE: Complete items 66b and 66c ONLY if item 66a is answered "Yes. For items 66b and 66c report amounts that relate ONLY to insurance, real estate, and leasing activities. Report amounts according to the books of the U.S. affiliate. 66b. Liabilities, relating to your insurance, real estate, and leasing activities, owed by U.S. affiliate to foreign parent named in item 55 and to FAFP — Current and long-term. 3o 66c. Receivables, relating to your insurance, real estate, and leasing activities, due to U.S. affiliate from foreign parent named in item 55 and from FAFP — Current and long-term. Include certificates of deposit and other deposits (that would otherwise be included in cash on your balance sheet) held by the foreign parent and foreign affiliates of the foreign parent. 3051 Close FY 2002 (1) Bil. Mil. Thous. $ Dols ^ Section D — CHANGES IN EQUITY HOLDINGS IN THE U.S. AFFILIATE BY THE FOREIGN PARENT NAMED IN ITEM 55 Report transactions during FY 2002 by the foreign parent named in item 55 that changed its equity holdings in the U.S. affiliate. Exclude changes caused by carrying net income to the equity account, the payment of stock or cash dividends (other than liquidating dividends), or the remittance of earnings during the period. Exclude effect of treasury stock transactions with persons other than the foreign parent, reimbursed losses, and reorganizations in capital structure that do not affect total equity. REPORT ALL AMOUNTS AT THE TRANSACTION VAL(JE, i.e., the value of the consideration given or received by the foreign parent for the increases or decreases in the foreign parent's equity holdings in the U.S. affiliate. . TRANSACTIONS BETWEEN FOREIGN PARENT AND U.S. AFFILIATE 67. Increase in equity interest 67a. Increase from reimbursed losses sc 67b. Other Increases 68. Decrease in equity interest — Include liquidating dividends . TRANSACTIONS BETWEEN FOREIGN PARENT AND A PERSON OTHER THAN U.S. AFFILIATE 69. Acquisition by foreign parent of equity interest in U.S. affiliate from — U.S. persons other than the U.S. affiliate 70. All foreign persons 71. Sale by foreign parent of equity interest in U.S. affiliate to — U.S. persons other than the U.S. affiliate 72. All foreign persons 73. TOTAL — Equals sum of items 67a, 67b, 69 and 70, minus sum of items 68, 77 and 72- • For item 73, enter the amounts by which the transaction value — 74. exceeds the value carried on the books of the U.S. affiliate 75. is less than the value carried on the books of the U.S. affiliate For acquisition (1) Bil. Mil. Thous. Dols, Close FY 2001 (2) Bil. Mil. Thous. Amount (1) Bil. Mil. Thous. For liquidation or sale (2) Bil. Mil. Thous. Dols. iDols Dols. Page 6 FORM BE-12 BANK (REV. 12/2002) 289 E ^m™ INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT AND BETWEEN mamamm ^ g AFFILIATE AND FOREIGN AFFILIATES OF THE FOREIGN PARENT (FAFP) - Continued L Section E - PAYMENTS AND RECEIPTS OF DIVIDENDS OR REMITTED EARNINGS; INTEREST; ROYALTIES, LICENSE FEES, ^ AND OTHER FEES; AND OTHER SERVICES BETWEEN U.S. AFFILIATE AND FOREIGN PARENT AND BETWEEN U.S. AFFILIATE AND FAFP Enter amounts received, paid, or entered into intercompany accounts, whichever occurred first. Include amounts for which payment was made in kind. For an item accrued prior to the reporting period, do not report any subsequent settlement of the account in the items below. Exclude interest related to the parent's and affiliate's ordinary banking business. 76. Dividends or remitted earnings — Dividends on common and preferred stock, excluding stock and liquidating dividends of incorporated U.S. bank affiliate, or distributed earnings of a U.S. bank affiliate that is a branch or agency. Exclude reimbursed losses. 3073 PAYMENTS OR CREDITS BY U.S. AFFILIATE TO FOREIGN PARENT AND FAFP RECEIPTS BY OR CREDITS TO U.S. AFFILIATE FROM FOREIGN PARENT AND FAFP Net payment (after deduction of U.S. tax withheld) (1) U.S. tax withheld (2) Net receipt (after deduction of foreign tax withheld) (3) Foreign tax withheld (4) Bil. Mil. Thous. |Dols. Bil. IVIil. Thous. |Dols. Bil. Mil. Thous. |Dols. Bil. Mil. Thous. JDols. 1 $ 1 2 $ 1 77a. Interest on foreign parent's permanent invested debt (item 65) — Do not include interest from other types of loans. 3075 1 1 2 1 77b. Interest on liabilities and receivables related to the insurance, real estate, and leasing activities (items 66b and 66c). 3080 1 ' 2 ' 3 ' $ 1 4 1 $ 1 78. Royalties, license fees, and other fees for the use or sale of intangible property 3077 1 1 2 1 3 1 4 1 79. Charges for use of tangible property — Include rentals for operating leases of one year or less and net rent on operating leases of more than one year. Net rent is equivalent to the total lease payment less the return of capital (depreciation) component. 3082 1 1 2 1 3 1 4 1 Additional instructions for item 80 are found on pages 13 and 14 at the back of this form. 80. Allocated expenses and sales of services — Include: (1) allocated expenses or reimbursements for management, professional, technical, or other services that would normally be included in "other income" in the income statement of the provider of the service and, (2) payments by the U.S. affiliate to, or receipts by the U.S. affiliate from, the foreign parent and FAFP for services that are separately billed and that would normally be included in gross operating revenues of the seller of the service (item 17, column 2, of this form for the U.S. affiliate). Also include as a charge for services rendered any explicit fees paid to, or received from, the foreign parent or FAFP for arranging an interest rate or foreign currency swap agreement. 3083 1 1 2 1 3 1 4 1 81 . TOTAL — Sum of items 76 84 1 1 $ 2 1 3 1 $ ] 4 $ ' ^ Section F - FOREIGN PARENT'S EQUITY IN U.S. AFFILIATE'S NET INCOME 82. Foreign parent's direct equity in U.S. affiliate's net income (loss) after provision for U.S. Federal, State, and local income taxes — Enter the foreign parent's share of item 31 based on the foreign parent's direct equity in the U.S. affiliate during FY 2002. 3085 Amount (1) Bil. Mil. Thous. |DoIs. 1 1 $ 1 BEA USE ONLY 3103 1 2 3 4 FORM BE-12 BANK (REV. 12/2002) Page? 290 INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT AND BETWEEN U.S. AFFILIATE AND FOREIGN AFFILIATES OF THE FOREIGN PARENT (FAFP) — Continued FOREIGN PARENT AND UBO INDUSTRY CODES 01 Government and government-owned or -sponsored enterprise, or quasi-government organization or agency 02 Pension fund — Government run 03 Pension fund — Privately run 04 Estate, trust, or nonprofit organization (that part of 5252 that is estates and trusts) 05 Individual Private business enterprise, investment organization, or group engaged in: 06 Insurance (2002 ISI codes 5242, 5243, 5249) 07 Agriculture, forestry, fishing, and hunting (2002 ISI codes 1110-1140) 08 Mining (2002 ISI codes 2111-2127) 09 Construction (2002 ISI codes 2360-2380) 10 Transportation and warehousing (2002 ISI codes 4810-4939) 11 Utilities (2002 ISI codes 2211-2213) 12 Wholesale and retail trade (2002 ISI codes 4231-4251 and 4410-4540) 13 Banking, including bank holding companies (2002 ISI codes 5221 and 5229) 14 Holding companies, excluding bank holding companies (2002 ISI codes 5512 and 5513) 15 Other finance (2002 ISI codes 5223, 5224, 5231-5238, that part of 5252 that is not estates and trusts, and 5331) 16 Real estate (2002 ISI code 5310) 17 Information (2002 ISI codes 5111-5191) 18 Professional, scientific, and technical services (2002 ISI codes 5411-5419) 19 Other services (2002 ISI codes 1150, 2132, 2133, 5321, 5329, and 5611-8130) Manufacturing, including fabricating, assembling, and processing of goods: 20 Food (2002 ISI codes 31 11-31 19) 21 Beverages and tobacco products (2002 ISI codes 3121 and 3122) 22 Pharmaceuticals and medicine (2002 ISI code 3254) 23 Other chemicals (2002 ISI codes 3251-3259, except 3254) 24 Nonmetallic mineral products (2002 ISI codes 3271-3279) 25 Primary and fabricated metal products (2002 ISI codes 3311-3329) 26 Computer and electronic products (2002 ISI codes 3341-3346) 27 Machinery manufacturing (2002 ISI codes 3331-3339) 28 Electrical equipment, appliances, and components (2002 ISI codes 3351-3359) 29 Motor vehicles and parts (2002 ISI codes 3361-3363) 30 Other transportation equipment (2002 ISI codes 3364-3369) 31 Other manufacturing (2002 ISI codes 3130-3231, 3261, 3262, 3370-3399) 32 Petroleum manufacturing, including integrated petroleum and petroleum refining without extraction (2002 ISI codes 3242-3244) REMARKS — Please use this space for any explanation that may be essential in understanding your reported data. Pages FORM BE-12 BANK (REV. 12/2002) 291 5^ ™ ^ TO ra C: r~ o ^ ^ ^ § 13 O :2 S & C3J §f ill, oj 9-— o- ^ 2 (U CO ujtn ^^ < s Oz N O O (M ^* LI_ UJ < GC CO o LU 2 o< ii UJ u. 2« •-SE uo UJ Q. CCUJ 5"= QO gi S< zO og >-e) zl< u. UJ (AU So CO c 0) E 1 < = s « I- 2 -■ < CO N |l|o 15 o ^ c 3= o Z).2 ■§2 c T (D CD CL F C -4- fD O 2*5 % CD fD O o-c O "3 "S $> ^ 0) _ o 5 £ S ill o = c= E^ > « g 075 t i_ c (D CD O Q. E -o CO C TO 3 2 Page 9 292 TO ■£ '^ C c -n 1- .c ^-^ c 0-5 F F rn u. ^ «= c- >o 53 ^ "Sit Ci 5 JSco c C OJ (J TD,E u ^ -0 1 Z E <1> ^, +* to :Mit 5: 5 ? to O) c t: ID tS ti t c Page 10 FORM BE-12 BANK (REV. 12/2002) 293 BENCHMARK SURVEY OF FOREIGN DIRECT INVESTMENT IN THE UNITED STATES 2002 FORM BE-12BANK ADDITIONAL INSTRUCTIONS NOTE: Instructions are cross referenced by number to the items located on pages 1 to 10 of this form. Authority — This survey is being conducted pursuant to the International Investment and Trade in Services Survey Act (P.L. 94-472, 90 Stat. 2059, 22 U.S.C. 3101-3108, as amended-hereinafter "the Act"), and the filing of reports is MANDATORY pursuant to Section 5(b)(2) of the Act (22 U.S.C. 3104). Penalties — Whoever fails to report shall be subject to a civil penalty of not less than $2,500, and not more than $25,000, and to injunctive relief commanding such person to comply, or both. Whoever willfully fails to report shall be fined not more than $10,000 and, if an individual, may be imprisoned for not more than one year, or both. Any officer, director, employee, or agent of any corporation who knowingly participates in such violations, upon conviction, may be punished by a like fine, imprisonment or both (22 U.S.C. 3105), Notwithstanding any other provision of the law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the Paperwork Reduction Act, unless that collection of information displays a currently valid 0MB Control Number. PART I — IDENTIFICATION OF U.S. AFFILIATE 2. Consolidation Rules Consolidated reporting by the U.S. affiliate — A U.S. affiliate must file on a fully consolidated domestic U.S. basis, including in the full consolidation all U.S. business enterprises in which it directly or indirectly owns more than 50 percent of the outstanding voting interest. The fully consolidated entity is considered one U.S. affiliate. NOTE: Starting with the 2002 BE-12, U.S. affiliates that are banks and bank holding companies that directly or indirectly own more than a 50 percent interest in one or more U.S. affiliates in nonbanking industries must file a single consolidated report on Form BE-12 BANK to report BOTH the banking and nonbanking operations. Except as noted in b and c below, all majority-owned U.S. affiliates should be fully consolidated into your Form BE-12 BANK. Aggregated reporting — All U.S. branches and agencies (including International Banking Facilities) directly owned by a foreign bank may be aggregated on a single Form BE-12 BANK. See example A below. (Note that subsequent filings of Form BE-605 quarterly reports with BEA, if required, must be on the same aggregated basis.) If all U.S. branches and agencies directly owned by a foreign bank are not aggregated on a single report, then each branch or agency must file a separate Form BE-12 BANK. Example A Foreign Parent Bank A Los Angeles Branch New York City Branch Data for all three branches (Miami, Los Angeles, and New York City) owned by Foreign Parent Bank A may be aggregated on a single Form BE-12 BANK. If aggregated, list all three branches on the Supplement A to this form. Report "3" as the number of U.S. branches aggregated for item 12 on page 2 of this form. Example B Foreign u7s.~ ~ I Foreign Parent | U.S. Bank B Branch 1 Branch 3 Branch 2 Consolidate data for each branch (branch 1, branch 2, and branch 3) and U.S. Bank B on a single Form BE-12 BANK. DO NOT list them on the Supplement A. Report "1" as number of U.S. affiliates consolidated for item 12 on page 2 of this form. Unless the exceptions discussed in a or c below apply, any deviation from these consolidation/ aggregation rules must be approved in writing each year by BEA. The following exceptions apply to the consolidation rules. If a U.S. affiliate is not consolidated into its U.S. parent's Form BE-12, then it must file its own Form BE-12(LF), BE-12(SF), or BE-12 BANK. a. DO NOT CONSOLIDATE FOREIGN SUBSIDIARIES, BRANCHES, OPERATIONS OR INVESTMENTS NO MATTER WHAT THE PERCENTAGE OWNERSHIP. Report foreign holdings of the U.S. bank affiliate owned 20 percent or more (including those that are majority owned) using the equity method of accounting. DO NOT eliminate intercompany accounts for investments reported using the equity method. You may report immaterial foreign investments using the cost method of accounting if this treatment is consistent with your normal reporting practice. Report foreign holdings of the U.S. bank affiliate owned less than 20 percent using the cost method of accounting. Do not consolidate, aggregate, or report on the equity or cost methods the operations of branches separately chartered by the foreign parent offshore (for example, in the Cayman Islands or the Bahamas). Such branches are considered to be foreign branches of the foreign parent and are not foreign holdings of the U.S. bank affiliate. b. You may file a separate BE-12 report for a U.S. affiliate that is owned more than 50 percent by another U.S. affiliate if the "owned" U.S. affiliate is not normally fully consolidated because control by the "owning" U.S. affiliate is temporary. To file separately you must make a request in writing and receive written permission from BEA each year. Include such affiliates, if not consolidated, on Form BE-12 BANK using the equity method of accounting. DO NOT eliminate intercompany accounts for such affiliates not consolidated. In accordance with FAS 94, consolidation of majority-owned subsidiaries is required even if their operations are not homogeneous with those of the U.S. affiliate that owns them. c. A U.S. affiliate in which a direct ownership interest and an indirect ownership interest are held by different foreign persons should not be fully consolidated Into another U.S. affiliate, but must complete and file its own Form BE-12(LF), BE-12(SF), or BE-12 BANK. (See diagram below.) Foreign person B | [Foreign person A | Foreign U.S. ' 100% 30o/„ U.S. affiliate X | i 60% iliate Y Except as described t fully consolidated int percent direct owner jelow, U.S. affiliate Y may not be U.S. affiliate X because of the 30 ,hip by foreign person B. Reflect the indirect ownership interest, even if more than 50 percent, on the balance sheet and income statement of the owning U.S. affiliate's Form BE-12 on an equity basis. For example, in the situation shown in the diagram above, U.S. affiliate X must treat its 60 percent ownership interest in U.S. affiliate Y as an equity investment. If both the direct and indirect lines of ownership are held by the same foreign person, the affiliate may be fully consolidated and the minority interest not held by the foreign parent either directly or indirectly must be eliminated. Thus, if in the diagram above, U.S. affiliate Y is 30 percent directly owned by Foreign person A instead of Foreign person B, then U.S. affiliate Y may be fully consolidated into U.S. affiliate X. In this example, the 10 percent minority interest that is not owned (directly or indirectly) by Foreign person A is eliminated. Include this 10 percent minority interest in the equity of affiliate Y as part of "total liabilities" (item 23) on the balance sheet, and include the 10 percent minority interest in the profits or loss as part of "net income (loss)" (item 31). BE-12 BANK |REV. 12/2002) Page 1 1 294 PARTI IDENTrFICATION OF U.S. AFFILIATE — Continued 4. Reporting period — The report covers the U.S. affiliate's 2002 fiscal year. The affiliate's 2002 fiscal year is defined as the affiliate's financial reporting year that had an ending date in calendar year 2002. Special Circumstances: a. 52/53 week fiscal year — Affiliates having a "52/53 week" fiscal year that ends within the first week of January 2003 are considered to have a 2002 fiscal year and should report December 31, 2002 as their 2002 fiscal year end. b. U.S. affiliates without a financial reporting year — If a U.S. affiliate does not have a financial reporting year, its fiscal year is deemed to be the same as calendar year 2002. c. Change in fiscal year (1) New fiscal year ends in calendar year 2002 — A U.S. affiliate that changed the ending date of its financial reporting year must file a 2002 Form BE-12 BANK that covers the 12 month period prior to the new fiscal year end date. The following example illustrates the reporting requirements. Example 1 . U.S. affiliate A had a June 30, 2001 fiscal year end date but changed its 2002 fiscal year end date to March 31. Affiliate A must file a 2002 Form BE-12 BANK covering the 12 month period from April 1, 2001 to March 31, 2002. The ending balance sheet amounts reported in column (1) of items 22 through 28 must be the correct balances as of March 31, 2002. The beginning balance sheet amounts reported in column (2) must be the unrestated ending balances as of June 30, 2001. To reconcile the beginning and ending retained earnings balances (or, if retained earnings is not shown as a separate account, the beginning and ending owners' equity balances) affiliate A must include an adjusting entry in item 36. (2) No fiscal year ending in calendar year 2002 — If a change in fiscal year results in a U.S. affiliate not having a fiscal year that ended in calendar 2002, the affiliate must file a 2002 Form BE-12 BANK that covers 12 months of data. The following example illustrates the reporting requirements. Example 2 . U.S. affiliate B had a December 31, 2001 fiscal year end date but changed its next fiscal year end date to March 31. Instead of having a short fiscal year ending in 2002, affiliate B decides to have a 15 month fiscal year running from January 1, 2002 to March 31, 2003. Affiliate B must file a 2002 Form BE-12 BANK covering a 12 month period ending in calendar year 2002, such as the period from April 1, 2001 to March 31, 2002. In this example, the ending balance sheet amounts reported in column (1) of items 22 through 28 must be the correct balances as of March 31, 2002. The beginning balance sheet amounts reported in column (2) must be the unrestated ending balances as of December 31, 2001. To reconcile the beginning and ending retained earnings balances (or, if retained earnings is not shown as a separate account, the beginning and ending owners' equity balances) affiliate B must include an adjusting entry in item 36. 5. Reporting requirements for a U.S. business enterprise that became foreign owned in fiscal year 2002 a. A U.S. business enterprises newly established in fiscal year 2002 must report data starting with the establishment date up to and ending on the last day of its fiscal year that ended in calendar year 2002. DO NOT estimate data for a full year of operations if the first fiscal year is less than 12 months. b. A U.S. business enterprises existing before fiscal year 2002 that became foreign owned in fiscal year 2002 must report data for all items for a full 12 months of operations. SELECTED FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE BALANCE SHEET ITEMS PART 11 Section A - 24—28 Equity investment in branches and agencies consists of earnings (losses) that have not been distributed or credited (debited) against the parent's account, plus the parent's initial capitalization and subsequent contributions of capital, less the return of this capital, plus the balance of the "accumulated other comprehensive income (loss)" account. If equity investment cannot be separately identified from debt, then (1) report equity as zero, (2) include all debt and equity amounts in item 23 (total liabilities), and (3) include an amount equal to net income (item 31) in item 39 (dividends or remitted earnings), or an amount equal to net loss (item 31) in item 40 (losses reimbursed by home office). Section B — OTHER FINANCIAL AND OPERATING DATA 30. Certain realized and unrealized gains (losses) included in the determination of total income Special instructions for (1) dealers in financial instruments, finance and insurance companies, and (2) real estate companies. (1) Dealers in financial instruments (including securities, currencies, derivatives, and other financial instruments) and finance and insurance companies — Include in item 30: (a) impairment losses as defined by FAS 115, (b) realized gains and losses on trading or dealing, (c) unrealized gains or losses, due to changes in the valuation of financial instruments, that flow through the income statement, and (d) goodwill impairment as defined by FAS 142. DO NOT include in item 30 unrealized gains or losses due to changes in the valuation of financial instruments that are taken to other comprehensive income. Include such gains and losses in item 26b (all other components of accumulated other comprehensive income (loss)). DO NOT include income from explicit fees and commissions in item 30. Include income from explicit fees and commissions as part of your income from operations on lines 13 through 17. (2) Real estate companies — Report gains or losses from the sale, disposition, or revaluation of land, other property, plant, and equipment, or other assets as follows; (a) Realized gains and losses Report the gross amount of revenues earned from sales of real estate that you owned as operating income in item 17 column 2. Do not net the expenses against the revenues. DO NOT report any amounts in item 30. (b) Impairment of long-lived assets Include impairment losses, as defined by FAS 144 and recognized during the period, in item 30 (certain realized and unrealized gains (losses)). (c) Goodwill impairment Include goodwill impairment as defined by FAS 142 in item 30 (certain realized and unrealized gains (losses)). (d) Unrealized gains Include gains recognized due to the revaluation of real estate assets in item 30 (certain realized and unrealized gains (losses)). 32. Total employee compensation — Employee compensation consists of wages and salaries of employees and employer expenditures for all employee benefit plans. Base employee compensation data on payroll records related to activities during the reporting period. The employee compensation data must cover activities that were charged as an expense on the income statement, charged to inventories, or capitalized during the reporting period. Do not include data related to activities of prior periods, such as those capitalized or charged to inventories in prior years. (1) Wages and salaries are the gross earnings of all employees before deduction of employees' payroll withholding taxes, social insurance contributions, group insurance premiums, union dues, etc. Include time and piece rate payments, cost of living adjustments, overtime pay and shift differentials, bonuses, profit sharing amounts, and commissions. Exclude commissions paid to independent personnel who are not employees. Wages and salaries include direct payments by employers for vacations, sick leave, severance (redundancy) pay, etc. Exclude payments made by, or on behalf of, benefit funds rather than by the employer. (Include employer contributions to benefit funds in employee benefit plans.) Wages and salaries include in-kind payments, valued at their cost, that are clearly and primarily of benefit to the employees as consumers. Do not include expenditures that benefit employers as well as employees, such as expenditures ifor plant facilities, employee training programs, and reimbursement for business expenses. Page 12 BE.12 BANK (REV, 12/2002) 295 PART II - SELECTED FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE — Continued (2) Employee benefit plans are employer expenditures for all employee benefit plans, including those required by government statute, those resulting from a collective-bargaining contract, or those that are voluntary. Employee benefit plans include Social Security and other retirement plans, life and disability insurance, guaranteed sick pay programs, workers' compensation insurance, medical insurance, family allowances, unemployment insurance, severance pay funds, etc. If plans are financed jointly by the employer and the employee, include only the contributions of the employer. Section E — SCHEDULE OF EMPLOYMENT AND PROPERTY, PLANT, AND EQUIPMENT, BY LOCATION 47 — 53 The Schedule of Employment and Property, Plant, and Equipment, by Location covers the 50 States, the District of Columbia, and all territories and possessions of the United States. Include in this schedule only data pertaining to those U.S. business enterprises that are fully consolidated into the reporting U.S. affiliate. Do not consolidate or include data for foreign business enterprises or operations, whether incorporated or unincorporated. Location of employees or of an asset is the U.S. State, territory, or possession in which the person is permanently employed, or in which the land or other property, plant, and equipment is physically located and to which property taxes, if any, on such assets are paid. For example, an employee permanently based and carried on the payroll of a company located in California, who is on a duty assignment in Texas of one year or less at the end of the reporting period, should be shown as located in California rather than Texas. Foreign — Use the category "foreign" to report fixed assets that belong to and are carried directly on the books of the consolidated domestic U.S. affiliate, but are located outside of the United States. Do not include on the foreign line employees who are on a duty assignment outside of the United States for one year or less. Include such employees in the U.S. state, territory, or possession where they are normally located. In most cases do not include any employees on the foreign line. One exception is when employees located outside of the United States for more than one year are carried on the payroll of the domestic U.S. affiliate. Such employees should be reported on the foreign line. Do not include on the foreign line employees located outside of the United States for more than a year if they are carried on the payroll of a foreign company. Such employees do not belong on the Form BE-12 BANK. Other property, plant and equipment — Use the category "other property, plant, and equipment" to report (1) items that frequently switch locations such as aircraft, railroad rolling stock, ships of U.S. registry, and trucks engaged in interstate transportation, (2) items such as pipelines, fiber optic cable, power lines, etc., located in more than one state, (3) satellites, and undersea cable, and (4) property leased to others, except land or buildings, under operating leases. Part III — INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT AND BETWEEN U.S. AFFILIATE AND FOREIGN AFFILIATES OF THE FOREIGN PARENT (FAFP) Section A — IDENTIFICATION OF FOREIGN PARENT AND ULTIMATE BENEFICIAL OWNER 57. Voting interest and Equity interest a. Voting interest is the percent of ownership in the voting equity of the U.S. affiliate. Voting equity consists of ownership interests that have a say in the management of the company. Examples of voting equity include capital stock that has voting rights and a general partner's interest in a partnership. b. Equity interest is the percent of ownership in the total equity (voting and nonvoting) of the U.S. affiliate. Nonvoting equity consists of ownership interests that do not have a say in the management of the company. An example of nonvoting equity is preferred stock that has no voting rights. Another example is a limited partner's interest in a limited partnership. Voting interest and equity interest are not always equal. For example, an owner can have a 100 percent voting interest in a U.S. affiliate but own less than 100 percent of the affiliate's total equity. This situation is illustrated in the following example. Example : U.S. affiliate A has two classes of stock, common stock and preferred stock. There are 50 shares of common stock outstanding. Each common share is entitled to one vote and has an ownership interest in 1 percent of the total owners' equity. There are 50 shares of preferred stock outstanding. Each preferred share has an ownership interest in 1 percent of the total owners' equity but has no voting rights. Foreign parent B owns all 50 shares of the common stock. Unaffiliated U.S. investors own all 50 shares of the preferred stock. Since foreign parent B owns all of the voting stock, foreign parent B has a 100 percent voting interest in U.S. affiliate A. However, since all 50 of the nonvoting preferred shares are owned by unaffiliated U.S. investors, foreign parent B has only a 50 percent equity interest in U.S. affiliate A. Section E — PAYMENTS AND RECEIPTS OF DIVIDENDS OR REMITTED EARNINGS; INTEREST; ROYALTIES, LICENSE FEES, AND OTHER FEES; AND OTHER SERVICES BETWEEN U.S. AFFILIATE AND FOREIGN PARENT AND BETWEEN U.S. AFFILIATE AND FAFP 80. Allocated expenses and sales of services — Include: a. Insurance services — To avoid duplication with other BEA surveys report ONLY the following: In item 80, column (1), report payments by the U.S. affiliate of premiums for the purchase of primary insurance from the foreign parent and foreign affiliates of the foreign parent. In item 80 , column (3), report payments by the foreign parent and foreign affiliates of the foreign parent to the U.S. affiliate, for losses covered by insurance reported in column (1). b. Financial services — Report payments and receipts for the following types of financial services: • Brokerage including foreign exchange brokerage, • Private placement of securities, • Underwriting of securities, • Financial management, • Credit-related services, • Financial advisory and custody services, • Securities lending, • Origination fees in connection with over-the-counter derivative financial instruments, but only if the fees are separately identified in transaction documentation issued by the dealers in the instruments to the customers, and are not considered undifferentiated components of overall trading or market making gains, • Asset pricing, • Security exchange listing fees, • Demand deposit fees, • Securities rating services, • Electronic funds transfer, • Check processing fees, • Mutual fund exit fees, load charges, and "12b-l" service fees, • Securities redemption or transfer, • ATM network services, • Securities or futures clearing and settling services. BE-12 BANK IREV. 12/2002) Page 13 296 Part III — INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT AND BETWEEN U.S. AFFILIATE AND FOREIGN AFFILIATES OF THE FOREIGN PARENT (FAFP) — Continued Do not report as financial services the following: • Fees for commodity or merchandise brokerage services, • Earnings from buying and selling (i.e., trading) commercial paper or other securities for your own account, • Gains or losses due to selling or revaluing securities, • Interest under repurchase or reverse repurchase agreements, • Earnings from dealer markups on buy and sell transactions (i.e., bid/ask price spreads), • Real estate brokerage fees, • Business brokerage fees, • Annuity purchases and payments to annuitants, • Pension fund contributions and benefits, • Earnings of principals from buying and selling of financial instruments, • Bid/ask price spreads and trading profits on dealing in foreign currencies, securities, and other financial instruments, • Insurance premiums and losses, and commissions on insurance, • Interest and dividend receipts and payments c. Transportation — Report payments by the U.S. affiliate to the foreign parent or foreign affiliates of the foreign parent (FAFP) for carrying merchandise from foreign destinations to the United States and between foreign destinations; report receipts by the U.S. affiliate from the foreign parent and FAFP for carrying merchandise from the United States to foreign destinations and for carrying freight between foreign destinations. d. Computer and information services — Report payments and receipts for: (1) Data entry processing (both batch and remote), and tabulation; computer systems analysis, design, and engineering; custom software and programming services (including web site design); integrated hardware/software systems; and other computer services (e.g., timesharing, maintenance, web site management, and repair). (2) Business and economic data base services, including business news, stock quotation, and financial information services; medical, legal, technical, demographic, bibliographic, and similar data base services; general news services, such as those purchased from a news syndicate; direct non-bulk subscriptions (including online) to newspapers and periodicals; and other information services, including reservation systems and credit reporting and authorization systems. For airline reservation systems, include booking fees from foreign carriers for the use of your reservation system, whether accessed directly or by a U.S. or foreign travel agent. e. Management, consulting, and public relations services f. Research, development, and testing services — Commercial and noncommercial research, product development services, and testing services. g. Other services — Report payments and receipts for other services that are separately billed and that would normally be included in sales or gross operating revenues of the seller of the services (items 13 through 17, column 2 of this form) and allocated expenses or reimbursements for, professional, technical, public relations, or other services that would be included in "other income" in the income statement of the provider of the service. Telecommunications carriers should not include payments and receipts for message telephone services; report data for these services on Form BE-20 (Benchmark) or BE-22 (Annual) Survey of Selected Services Transactions With Unaffiliated Foreign Persons. Page 14 BE-12 BANK (REV. 12/2002) Appendix B 297 U.S. DEPARTMENT OF COMMERCE Bureau of Economic Analysis 299 GUIDE TO INDUSTRY AND FOREIGN TRADE CLASSIFICATIONS FOR INTERNATIONAL SURVEYS, 2002 Industry classifications adapted from the 2002 North American Industry Classification System (NAICS) Foreign trade classifications adapted from the Standard International Trade Classification, Revision 3 (SITC) U.S. Department of Commerce RR^ Bureau of Economic Analysis CONTENTS Part I Industry classifications Part II Foreign trade classifications 51 This guide provides detailed descriptions of eacli of the industry and foreign trade classification categories to be used in completing BEA's international surveys. Industry classifications described in the first part of this guide are used to determine the type of business conducted by the entity being reported (pages 2-50). Foreign trade classifications, described in the second part of this guide (pages 51-54), are used to classify, by product, U.S. exports and Imports of goods. BE-799 (REV. 12/2002) 300 PART I. -INDUSTRY CLASSIFICATIONS The international surveys industry (IS!) classifications described here are to be used when completing the industry classifications items in BEA's surveys of direct investment and services. The classifications and their code numbers were adapted by BEA from the 2002 North American Industry Classification System (hereafter referred to as the "2002 NAICS"). Industry classifications in the previous version of this guide were adapted from the 1997 North American Industry Classification System. Reflecting the changes made to the NAICS for 2002, the new 2002 NAICS-based ISI classifications differ from the 1997 NAICS-based ISI classifications for the Construction, Wholesale Trade, and Information sectors. If you have activities in these sectors, please classify them carefully using the new ISI codes. In the Construction sector, changes were made to better reflect similar production processes (in accordance with the NAICS conceptual framework); in the Wholesale Trade sector, changes were made to differentiate between businesses that take title to goods and those that do not, and to better capture the emergence of business-to-business electronic markets; and in the Information sector, new classifications were added to recognize new and emerging activities, particularly for Internet-related activities and telecommunications services. For reporting on BEA surveys, 205 individual ISI classifications were adapted from the 2002 NAICS, and each has been assigned a four-digit numerical code. (The previously used NAICS-based 1997 ISI classifications had 197 four-digit codes.) The titles of some ISI classifications, by themselves, may not be sufficiently descriptive to classify certain activities. More information on the content of each classification is provided in the detailed definitions below. For some classifications, a "NOTE" given after the definition lists closely related activities NOT included in the classification being defined and the ISI codes for those activities. For the convenience of those U.S. reporters familiar with the 2002 NAICS, the 2002 NAICS code or codes that correspond to a given ISI classification are shown in parentheses under the heading of each ISI classification. Because differences between a given ISI classification and the corresponding 2002 NAICS classification(s) may exist, the detailed definitions of the ISI classifications should be consulted when completing industry classification items in the survey. BE-799 (REV. 12/2002) Page 2 PART I -INDUSTRY CLASSrFICATIONS -Continued SUMMARY OF INDUSTRY CLASSIFICATIONS 301 AGRICULTURE, FORESTRY, FISHING, AND HUNTING 1110 Crop production — 1120 Animal production 1130 Forestry and logging 1140 Fishing, hunting, and trapping 1 150 Support activities for agriculture and forestry MINING 211 1 Oil and gas extraction 2121 Coal 2123 Nonmetallic minerals 2124 Iron ores 2125 Gold and silver ores 2126 Copper, nickel, lead, and zinc ores 2127 Other metal ores 2132 Support activities for oil and gas operations 2133 Support activities for mining, except for oil and gas operations UTILITIES 2211 Electric power generation, transmission, and distribution 2212 Natural gas distribution 2213 Water, sewage, and other systems CONSTRUCTION 2360 Construction of buildings 2370 Heavy and civil engineering construction 2380 Specialty trade contractors MANUFACTURING 3111 Animal foods 3112 Grain and oilseed milling 3113 Sugar and confectionery products 3114 Fruit and vegetable preserving and specialty foods 3115 Dairy products 3116 Meat products 3117 Seafood product preparation and packaging 3118 Bakeries and tortillas 3119 Other food products 3121 Beverages 3122 Tobacco 3130 Textile mills 3140 Textile product mills 3150 Apparel 3160 Leather and allied products 3210 Wood products 3221 Pulp, paper, and paperboard mills 3222 Converted paper products 3231 Printing and related support activities 3242 Integrated petroleum refining and extraction 3243 Petroleum refining without extraction 3244 Asphalt and other petroleum and coal products 3251 Basic chemicals 3252 Resins, synthetic rubbers, and artificial and synthetic fibers and filaments 3253 Pesticides, fertilizers, and other agricultural chemicals 3254 Pharmaceuticals and medicines 3255 Paints, coatings, and adhesives 3256 Soap, cleaning compounds, and toilet preparations 3259 Other chemical products and preparations 3261 Plastics products 3262 Rubber products 3271 Clay products and refractories 3272 Glass and glass products 3273 Cement and concrete products 3274 Lime and gypsum products 3279 Other nonmetallic mineral products 3311 Iron and steel mills and ferroalloys 3312 Steel products from purchased steel 3313 Alumina and aluminum production and processing 3314 Nonferrous metal (except aluminum) production and processing 3315 Foundries 3321 Forging and stamping 3322 Cutlery and handtools 3323 Architectural and structural metals 3324 Boilers, tanks, and shipping containers 3325 Hardware 3326 Spring and wire products 3327 Machine shops; turned products; and screws, nuts, and bolts 3328 Coating, engraving, heat treating, and allied activities 3329 Other fabricated metal products 3331 Agriculture, construction, and mining machinery 3332 Industrial machinery 3333 Commercial and service industry machinery 3334 Ventilation, heating, air- conditioning, and commercial refrigeration equipment 3335 Metalworking machinery 3336 Engines, turbines, and power transmission equipment 3339 Other general purpose machinery 3341 Computer and peripheral equipment 3342 Communications equipment 3343 Audio and video equipment 3344 Semiconductors and other electronic components 3345 Navigational, measuring, electromedical, and control instruments 3346 Manufacturing and reproducing magnetic and optical media 3351 Electric lighting equipment 3352 Household appliances 3353 Electrical equipment 3359 Other electrical equipment and components 3361 Motor vehicles 3362 Motor vehicle bodies and trailers 3363 Motor vehicle parts 3364 Aerospace products and parts 3365 Railroad rolling stock 3366 Ship and boat building 3369 Other transportation equipment 3370 Furniture and related products 3391 Medical equipment and supplies 3399 Other miscellaneous manufacturing WHOLESALE TRADE MERCHANT WHOLESALERS, DURABLE GOODS 4231 Motor vehicles and motor vehicle parts and supplies merchant wholesalers 4232 Furniture and home furnishing merchant wholesalers 4233 Lumber and other construction materials merchant wholesalers 4234 Professional and commercial equipment and supplies merchant wholesalers 4235 Metal and mineral (except petroleum) merchant wholesalers 4236 Electrical and electronic goods merchant wholesalers 4237 Hardware, and plumbing and heating equipment and supplies merchant wholesalers 4238 Machinery, equipment, and supplies merchant wholesalers 4239 Miscellaneous durable goods merchant wholesalers MERCHANT WHOLESALERS NONDURABLE GOODS 4241 Paper and paper product merchant wholesalers 4242 Drugs and druggists' sundries merchant wholesalers 4243 Apparel, piece goods, and notions merchant wholesalers 4244 Grocery and related product merchant wholesalers 4245 Farm product raw material merchant wholesalers 4246 Chemical and allied products merchant wholesalers 4247 Petroleum and petroleum products merchant wholesalers 4248 Beer, wine, and distilled alcoholic beverage merchant wholesalers 4249 Miscellaneous nondurable goods merchant wholesalers ELECTRONIC MARKETS AND AGENTS AND BROKERS 4251 Wholesale electronic markets and agents and brokers RETAIL TRADE 4410 Motor vehicle and parts dealers 4420 Furniture and home furnishings stores 4431 Electronics and appliance stores 4440 Building material and garden equipment and supplies dealers 4450 Food and beverage stores 4461 Health and personal care stores 4471 Gasoline stations 4480 Clothing and clothing accessories stores 4510 Sporting goods, hobby, book, and music stores 4520 General merchandise stores 4530 Miscellaneous store retailers 4540 Nonstore retailers BE-799 (REV. 12/2002) Page 3 302 PART I -INDUSTRY CLASSIFICATIONS -Continued SUMIVIARY OF INDUSTRY CLASSIFICATIONS TRANSPORTATION AND WAREHOUSING 4810 4821 4833 4839 4840 4850 4863 4868 4870 4880 4920 4932 4939 Air transportation Rail transportation Petroleum tanker operations Other water transportation Truck transportation Transit and ground passenger transportation Pipeline transportation of crude oil, refined petroleum products, and natural gas Other pipeline transportation Scenic and sightseeing transportation Support activities for transportation Couriers and messengers Petroleum storage for hire Other warehousing and storage INFORMATION 5111 Newspaper, periodical, book, and directory publishers 5112 Software publishers 5121 Motion picture and video industries 5122 Sound recording industries 5151 Radio and television broadcasting 5152 Cable and other subscription programming 5161 Internet publishing and broadcasting 5171 Wired telecommunications carriers 5172 Wireless telecommunications carriers (except satellite) 5173 Telecommunications resellers 5174 Satellite telecommunications 5175 Cable and other program distribution 5179 Other telecommunications 5181 Internet service providers and web search portals 5182 Data processing, hosting, and related services 5191 Other information services FINANCE AND INSURANCE 5221 Depository credit intermediation (Banking) 5223 Activities related to credit intermediation 5224 Nondepository credit intermediation 5229 Nondepository branches and agencies 5231 Securities and commodity contracts intermediation and brokerage 5238 Other financial investment activities and exchanges 5242 Agencies, brokerages, and other insurance related activities 5243 Insurance carriers, except life insurance carriers 5249 Life insurance carriers 5252 Funds, trusts, and other financial vehicles REAL ESTATE AND RENTAL AND LEASING 5310 Real estate 5321 Automotive equipment rental and leasing 5329 Other rental and leasing services 5331 Lessors of nonfinancial intangible assets (except copyrighted works) PROFESSIONAL, SCIENTIFIC, AND TECHNICAL SERVICES 5411 Legal services 5412 Accounting, tax preparation, bookkeeping, and payroll services 5413 Architectural, engineering, and related services 5414 Specialized design services 5415 Computer systems design and related services 5416 Management, scientific, and technical consulting services 5417 Scientific research and development services 5418 Advertising and related services 5419 Other professional, scientific, and technical services MANAGEMENT OF COMPANIES AND ENTERPRISES 5512 Holding companies, except bank holding companies 5513 Corporate, subsidiary, and regional management offices ADMINISTRATIVE AND SUPPORT AND WASTE MANAGEMENT AND REMEDIATION SERVICES 5611 Office administrative services 5612 Facilities support services 5613 Employment services 5614 Business support services 5615 Travel arrangement and reservation services 5616 Investigation and security services 5617 Services to buildings and dwellings 5619 Other support services 5620 Waste management and remediation services EDUCATIONAL SERVICES 6110 Educational services HEALTH CARE AND SOCIAL ASSISTANCE 6210 Ambulatory health care services 6220 Hospitals 6230 Nursing and residential care facilities 6240 Social assistance ARTS, ENTERTAINMENT, AND RECREATION 7110 Performing arts, spectator sports, and related industries 7121 Museums, historical sites, and similar institutions 7130 Amusement, gambling, and recreation industries ACCOMMODATION AND FOOD SERVICES 7210 Accommodation 7220 Food services and drinking places OTHER SERVICES 8110 Repair and maintenance 8120 Personal and laundry services 8130 Religious, grantmaking, civic, professional, and similar organizations PUBLIC ADMINISTRATION 9200 Public administration BE-799 (REV. 12/2002) Page 4 jA PART I 4NDUSTRY CLASSIFICATIONS -Continued 303 AGRICULTURE, FORESTRY, FISHING, AND HUNTING The agriculture, forestry, fishing, and hunting sector (ISI codes 1110-1150) comprises businesses that are engaged in growing crops, raising animals, harvesting timber, and harvesting fish and other animals from a farm, ranch, or their natural habitats. The sector distinguishes two basic activities: agricultural production and agricultural support activities. Agricultural production includes businesses performing the complete farm or ranch operation, such as farm owner-operators, tenant farm operators, and sharecroppers. Agricultural support activities include businesses that perform one or more activities associated with farm operation, such as soil preparation, planting, harvesting, and management, on a contract or fee basis. 1110 Crop production (2002 NAICScode 111) Businesses engaged in growing crops for food and fiber. Examples of such crops are: Corn Potatoes Cotton Soybeans and other oilseeds Dry peas and beans Sugarcane and sugarbeets Fruits and tree nuts Tobacco Maple sap Vegetables and melons Mushrooms Wheat Also included are nursery, tree (with growth cycles of 10 years or less), and floriculture production. NOTE - Managing farms without owning and/or operating the farms is classified in ISI code 1150. 1120 Animal production (2002 NAICScode 112) Businesses that raise or fatten animals or sell animal products. Examples of businesses in, or products of, this industry are: Beef cattle ranches, farms, and feedlots Hog and pig farms Dairy cattle and milk production Horses Farm-raised fish Poultry and egg products Fur-bearing animals NOTE - The catching or taking of fish from their natural habitat is classified in ISI code 1 1 40. 1130 Forestry and logging (2002 NAICScode 113) Businesses in this industry grow and harvest timber on a long production cycle of 10 years or more. They engage in the operation of timber tracks for the purpose of selling standing timber. These businesses also grow trees for reforestation or for gathering forest products such as barks, fibers, ginseng, gums, and truffles. NOTE - Growing short rotation woody trees with a growth cycle of less than 10 years is classified in ISI code 1110. Gathering maple sap is classified in ISI code 1110. Acting as lessors of land with trees as real estate property is classified in ISI code 5310. 1140 Fishing, hunting, and trapping (2002 NAICScode 114) Businesses engaged in: Commercial catching or taking of finfish, shellfish, or miscellaneous marine products from a natural habitat Commercial hunting or trapping Operating game or hunting preserves NOTE - The farm raising of finfish and shellfish are classified in ISI code 1 120. The commercial catching or taking and processing of fresh fish such as canning, freezing, etc, on the fishing vessel are classified in ISI code 3117. Operating nature preserves is classified in ISI code 7121. 1150 Support activities for agriculture and forestry (2002 NAICScode 115) Businesses that provide support services to agricultural and forestry production. Examples of activities of this industry are: Breeding services for animals Forestry consulting Crop production and harvesting services Postharvest crop activities Farm labor and management services Soil preparation services NOTE - Stemming and redrying tobacco are classified in IS! code 3122. Landscaping services are classified in ISI code 5617. BE-799 (REV. 12/2002) Page 5 Part I -INDUSTRY CLASSIFICATIONS -Continued ^"* MINING The mining sector (ISI codes 2111-2133) comprises businesses that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. The term mining is used in the broad sense to include quarrying, well operations, crushing, washing, and other operations performed at the mine site. This sector consists of two basic activities: (1) mine operation and (2) mining support activities. Mine operations are classified according to the natural resource mined. Businesses that mine and further process the mined materials into a finished product, are classified in manufacturing. For example, a business operating a granite quarry, producing dimension stone, and further shaping the dimension stone into building stone would be classified in manufacturing. 2111 Oil and gas extraction (2002 NAICS code 211) Businesses engaged in operating oil and gas field properties, including all activities in the preparation of oil and gas up to the point of shipment from the producing property. Includes businesses that operate oil and gas wells for others on a contract or fee basis. Examples of activities in the industry are: Drilling, completing, and equipping wells Exploring for crude petroleum and natural gas Mining and extraction of oil from oil shale and oil sands Operating separators, emulsion breakers, and desilting equipment Producing natural gas and recovering hydrocarbon liquids of oil from oil and gas field gases NOTE - Crude petroleum extraction combined with refining is classified in ISI code 3242. 2121 Coal (2002 NAICS code 2121) Businesses engaged in developing mine sites for, or in mining, and preparing (crushing, screening, washing, sizing, etc.) the following minerals; Anthracite Bituminous coal Lignite NOTE - The production of coal fuel briquettes and packed fuel is classified in ISI code 3244. 2123 Nonmetallic minerals (2002 NAICS code 2123) Businesses engaged in developing mine sites for, or in mining, quarrying, and preparing (crushing, screening, washing, sizing, etc.) nonmetallic minerals (other than coal, oil, and gas) such as: Chemical and fertilizer minerals, such as Gypsum, mica, and talc celestite, flourspar, barite, and sulphur Phosphate Clay, ceramic, and refractory minerals Potash, soda, and borate Crushed and broken limestone and granite Sand and gravel Dimension stone NOTE - Production of phosphoric acid, superphosphates, or other manufactured phosphate compounds or chemicals is classified in ISI code 3253. Grinding, pulverizing, or otherwise treating clay, ceramic, and refractory minerals is classified in ISI code 3271 Production of lime is classified in ISI code 3274. Dressing of dimension stone and other crushed and ground minerals such as talc, mica, and feldspar is classified in ISI code 3279. 2124 Iron ores (2002 NAICS code 21221) Businesses engaged in developing mine sites for, or in mining, and preparing (crushing, screening, washing, sizing, etc.) iron ores and manganiferous ores, and/or producing sinter and other agglomerates. NOTE - Operating blast furnaces to produce pig iron is classified in ISI code 331 1 . 2125 Gold and silver ores (2002 NAICS code 21222) Businesses engaged in developing mine sites for mining, and preparing (crushing, screening, washing, sizing, etc.) ores valued chiefly for their gold and silver content. The transformation of these ores into bullion or dore bar in combination with mining activities is also included in this industry. NOTE - Manufacturing gold or silver bullion or dore bar without mining is classified in ISI code 3314. BE-799 (REV. 12/2002) Page 6 Part I -4NDUSTRY CLASSIFICATIONS -Continued 305 MINING -Continued Copper, nickel, lead, and zinc ores (2002 NAICS code 21223) Businesses engaged in developing mine sites for mining, and preparing (crushing, screening, washing, sizing, etc.) ores valued chiefly for their copper, nickel, lead, or zinc content. The transformation of these ores into concentrates is also included in this industry. NOTE - Refining copper concentrates is classified in IS! code 3314. 2127 Other metal ores (2002 NAICS code 21229) Businesses engaged in developing mine sites for, mining, and preparing (crushing, screening, washing, sizing, etc.) other metal ores such as: Antimony Molybdenum Colombium Tungsten llmenite Uranium-radium-vanadium Magnesium NOTE - Enriching uranium is classified in IS! code 3251. 2132 Support activities for oil and gas operations (2002 NAICS code 213111 and 213112) Businesses engaged in performing oil or gas field services, for others, on a contract or fee basis. Examples of services provided in this industry are: Drilling wells for oil or gas field operations Exploration Grading and building foundations at well locations Well surveying NOTE - Complete responsibility for operating oil and gas wells for others on a contract or fee basis is classified in ISI code 2111. Site preparation and related construction activities is classified in ISI code 2380. Performing geophysical surveying services for oil and gas on a contract or fee basis is classified in ISI code 5413. 2133 Support activities for mining, except oil and gas operations (2002 NAICS code 2131 except for 21311 1 and 213112) Businesses engaged in performing support services, on a contract or fee basis, required for the mining and quarrying of minerals. Examples of services provided in this industry are: Exploration, including prospecting and taking ore samples Making geological observations NOTE - Complete responsibility for operating mines for others on a contract or fee basis is classified according to the product mined rather than in support activities for mining. Site preparation and related construction activities is classified in IS! code 2380 Performing geophysical surveying services for oil and gas on a contract or fee basis is classified in ISI code 5413. UTILITIES The utilities sector (ISI codes 221 1^213) comprises businesses engaged in the provision of the following utility services: electric power, natural gas, steam supply, water supply, and sewage removal. 221 1 Electric power generation, transmission, and distribution (2002 NAICS code 2211) Businesses engaged in generating, transmitting, and/or distributing electric power. Includes hydroelectric, fossil fuel, nuclear, and solar power generation. Also includes brokers or agents that arrange the sale of electricity via power distribution systems operated by others. NOTE - Operating trash incinerators that also generate electricity is classified in ISI code 5620. 2212 Natural gas distribution (2002 NAICS code 2212) Businesses that operate natural gas distribution systems, buy gas from the well and sell it to a distribution system, or brokers or agents that arrange the sale of gas over distribution systems operated by others. NOTE -Transmitting natural gas from the producer to the distributor via pipelines is classified in ISI code 4863. BE-799 (REV. 12/2002) Page 7 Part I -INDUSTRY CLASSIFICATIONS -Continued ^"^ UTILITIES -Continued 2213 Water, sewage, and other systems (2002 NAICS code 2213) Businesses engaged in operating water treatment plants and/or operating water supply systems, operating sewer systems, or sewage treatment facilities that collect, treat, and dispose of waste. NOTE - Operating waste treatment or disposal facilities (other than sewer systems or sewage treatment facilities) are classified in ISI code 5620. CONSTRUCTION The construction sector (ISI codes 2360-2380) comprises businesses engaged in the construction of buildings or engineering projects (e.g., highways and utility systems). Work performed includes new work, additions, alterations, or maintenance and repairs. This sector includes businesses engaged in the preparation of sites for new construction and businesses engaged in the subdividing of land for sale as building sites. Construction performed by a business primarily engaged in an activity other than construction, for its own account and use, and by its own employees (force construction), is excluded from this industry, and is classified according to the principle activity oiF the business. 2360 Construction of buildings (2002 NAICS code 236) Businesses in this industry are primarily responsible for the construction of buildings. The work performed may include new work, additions, alterations, or maintenance and repairs. Part or all of the production work may be subcontracted to other construction businesses. Examples of construction products of this industry are: Commercial buildings Industrial buildings Industrial non-building structures, such as incinerators Residential buildings 2370 Heavy and civil engineering construction (2002 NAICS code 237) Businesses whose primary activity is the construction of entire engineering projects (e.g., highways and dams) and specialty trade contractors, whose primary activity is the production of a specific component for such projects. The work performed may include new work, additions, alterations, or maintenance and repairs. Examples of construction projects in this industry are: Bridges and tunnels Highways and streets Irrigation systems Land development and subdivision Power and communication transmission lines Utilities systems construction Water mains, sewers, and pipelines NOTE - Businesses constructing buildings for sale, on lots they subdivide are classified in ISI 2360. 2380 Special trade contractors (2002 NAICS code 238) Businesses engaged in performing specific activities (e.g., pouring concrete, site preparation, plumbing, painting, electrical work) involved in building construction or other activities that are similar for all types of construction but that are not responsible for the entire project. The work performed may include new work, additions, alterations, or maintenance and repairs. Examples of businesses in this industry are: Carpentry and floor contractors Electrical contractors Foundation, structure, and building exterior contractors Heating and air-conditioning contractors Masonry and drywall contractors Plumbing contractors Roofing, siding, and sheet metal contractors Site preparation contractors NOTE - Special trade contractors performing work relating to heavy construction, such as grading for highways are classified in ISI code 2370. BE-799 (REV. 12/2002) Page 8 Part I -INDUSTRY CLASSIFICATIONS -Continued MANUFACTURING ^^"^ The manufacturing sector (ISI codes 3111-3399) comprises businesses engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products. The assembling of component parts of manufactured products is considered manufacturing, except in cases where the activity is classified in Construction (e.g., structures). Manufacturing businesses acquire materials that are products of agriculture, forestry, fishing, mining, and quarrying as well as products of other manufacturing businesses. A business may process the materials itself or may contract with another manufacturer to perform the processing on materials which they provide to the other manufacturer. Both types of businesses are included in manufacturing. The product produced by a manufacturer may be finished for final consumption or it may be a material input for an entity engaged in further manufacturing. For example, the product of an alumina refinery is the input used in the primary production of aluminum; primary aluminum is the input to an aluminum wire drawing plant; and aluminum wire is the input for a fabricated wire product manufacturer. Within the manufacturing sector, the individual industries generally reflect distinct production processes related to material inputs and production equipment. In the machinery area, where assembling is a key activity, parts and accessories for manufactured products are classified in the industry of the finished manufactured item when they are made for sale separately. For example, a replacement refrigerator door would be classified with refrigerators and an attachment for a piece of metal working machinery would be classified with metal working machinery. However, components and inputs from other manufacturers are classified based on the production function of the component manufacturer. Some borderline activities that are classified in manufacturing are: Apparel jobbing (assigning of materials to contract factories Mass production of computer software or shops for fabrication or other contract operations) or video tapes from a master copy as well as contracting on materials owned by others lyijK^ bottling and pasteurizing Aircraft and aerospace research and development Printing and related support activities Electroplating, plating, metal heat treating, and Ready-mixed concrete production polishing for the trade Rebuilding machinery, but not repairing Fabricating signs and advertising displays (j g^ automotive parts) Fresh fish packaging (oyster shucking, fish filleting) Ship repair and renovation Lapidary work for the trade jjrg retreading Machine shop work VVood preserving Some borderline activities that are not classified in manufacturing are: Logging is classified in Agriculture, Forestry, Fishing, and Hunting (ISI codes 1 1 10-1 150). The dressing and beneficiating of ores is classified in Mining (ISI codes 21 1 1-2133). The construction of structures and fabricating operations performed at the site of construction by contractors is classified in Construction (ISI codes 2360-2380). The breaking of bulk and redistribution in smaller lots, including packaging and repackaging products, such as liquors or chemicals; the customized assembly of computers; sorting of scrap; mixing paints to customer order; and cutting metals etc. to customer order are classified in Wholesale or Retail Trade (ISI codes 4231-4540). Publishing and the combined activity of publishing and printing is classified in Information (ISI codes 5111-5191). Although the activity performed is the transformation of information into a product, the value of the product to the consumer lies in the information content, not in the format in which it is distributed (i.e., the book, the software diskette). 3111 Animal foods (2002 NAICScode 3111) Businesses engaged in manufacturing food and feed for animals from ingredients such as grains, oilseed mill products, and meat products. 3112 Grain and oilseed milling (2002 NAICScode 3112) Examples of products or processes of this industry are: Breakfast cereals Rice milling Fats and oils refining and blending, Shortenings and margarines including blending pL/rc/?ased animal Soybean processing fats and oils with vegetable fats Vegetable oils and fats Flour milling Wet milled corn products, such as sweeteners Malt manufacturing and starches NOTE - Manufacturing: Rendered or refined animal fats and oils are classified in ISI code 3116. Prepared flour mixes or doughs from flour ground elsewhere is classified in ISI code 31 18. Table syrups from corn syrup and starch base dessert powders is classified in ISI code 3119. Coffee substitutes from grain is classified in ISI code 3119. Malt extracts and syrups is classified in ISI code 3119. Malt beverages is classified in ISI code 3121. BE-799 (REV. 12/2002) Page 9 Part I -INDUSTRY CLASSIFICATIONS -Continued ^^^ MANUFACTURING -Continued 3113 Sugar and confectionery products (2002 NAICS code 3113) Businesses that process agricultural inputs such as sugar cane, beet, and cacao to manufacture sugars, chocolates, or confectioneries and businesses that further process purchased sugar and chocolate. Examples of businesses in, or products of, this industry are: Candy Molasses Chewing gum Retail candy stores, if confectioneries Chocolate are manufactured on the premises, and Confectioneries are not for immediate consumption Granola bars Sugars, such as cane and beet NOTE - Manufacturing: Maple syrup is classified in ISI code 1110. Corn sweeteners by wet milling corn is classified in ISI code 3112. Sweetening syrups from corn syrup is classified in ISI code 3119. Artificial sweeteners is classified in ISI code 3251. 3114 Fruit and vegetable preserving and specialty foods (2002 NAICS code 3114) Businesses engaged in manufacturing frozen foods of vegetable or animal origins or in manufacturing canned, pickled and dried fruits, vegetables, and specialty foods. Examples of products of this industry are: Canned baby foods Frozen food specialties such as dinners, entrees. Canned fruits, juices and vegetables and side dishes Canned (non-seafood) soups Frozen fruits, juices, and vegetables Catsup, salsa, barbeque, and other Frozen waffles, pancakes, and french toast tomato-based sauces Frozen whipped toppings Dried and dehydrated fruits and vegetables Jams and jellies Dry soup mixes and bouillon made in dehydration plants Pickled fruits and vegetables NOTE - Manufacturing: Frozen or canned dairy products are classified in ISI code 3115. Frozen or canned meat products are classified in ISI code 3116. Frozen or canned seafood soups and products are classified in ISI code 3117. Frozen bakery products are classified in ISI code 3118. Dry soup mixes and bouillon made from purchased ingredients is classified in ISI code 3119. Canned fruit and vegetable drinks are classified in ISI code 3121. 3115 Dairy products (2002 NAICS code 3115) Businesses engaged in manufacturing dairy products from raw milk, processed milk, and dairy substitutes. Examples of products of this industry are: Butter and cheeses Ice cream, frozen yogurt, and other dairy desserts Canned, condensed, and evaporated milk Whipped toppings Fluid milk and cream Yogurt NOTE - Manufacturing: Margarine or margarine-butter blends is classified in ISI code 3112. Frozen whipped toppings is classified in ISI code 3114. 3116 Meat products (2002 NAICS code 3116) Examples of products or processes of this industry are: Animal slaughtering and processing yielding meats, meat by-products, and variety meats Lard Poultry processing Refined animal fats and oils Small game processing NOTE - Manufacturing: Meat-based animal feeds from carcasses is classified in ISI code 3111. Canned meat, small game, and poultry for baby food is classified in ISI code 3114. Drying, freezing, and breaking eggs is classified in ISI code 3119. BE-799 (REV. 12/2002) Page 10 Part I -INDUSTRY CLASSIFICATIONS -Continued MANUFACTURING -Continued ^"^ 3117 Seafood product preparation and packaging (2002 NAICS code 31 17) Examples of processes of this industry are: Canning seafood (including soup) Fresh and frozen seafood processing Shucking and packing fresh shellfish Smoking, salting, and drying seafoods 3118 Bakeries and tortillas (2002 NAICS code 3118) Examples of products of this industry are: Breads and other bakery products, from "retail" Dry pasta bakeries, if the goods are manufactured on Flour mixes and dough mixes from purchased flour the premises, and are not for immediate on Soft pretzels the premises consumption Tortillas Cookies and crackers NOTE - Manufacturing: Canned pasta and tortillas and frozen tortillas is classified in ISI code 3114. Pretzels (except soft) and tortilla chips is classified in ISI code 3119. Fresh pasta is classified in ISI code 31 19. Retailing bakery products manufactured elsewhere, not for immediate consumption is classified in ISI code 4450. Selling bakery products for immediate consumption on premises is classified in ISI code 7220. 31 19 Other food products (2002 NAICS code 3119) Examples of products of this industry are: Coffee and tea Peanut butter Dressings, mayonnaise, and other Potato chips, corn chips, popcorn, pretzels prepared sauces (except tomato based) (except soft), nuts and other snack foods Flavoring syrups, concentrates, and extracts Powdered drink mixes Fresh pastas and pizzas Seasonings, extracts, and spices Natural food colorings NOTE - Manufacturing: Chocolate or candy coated nuts and candy covered popcorn is classified in ISI code 3113. Chocolate syrup is classified in ISI code 3113. Tomato-based sauces is classified in ISI code 3114. Soft pretzels is classified in ISI code 3118. Bottled or canned ice tea is classified in ISI code 3121. Synthetic food colorings and natural colorings for non-food uses is classified in ISI code 3251. 3121 Beverages (2002 NAICS code 3121) Examples of products or processes of this industry are: Beer, ale, and malt liquor Purifying and bottling water Distilled and blended liquors Soft drinks Ice manufacturing Wines and brandies NOTE - Manufacturing: Milk-based drinks is classified in ISI code 31 15. Soft drink bases are classified in ISI code 3119. Non-alcoholic cider is classified in ISI code 3119. Dry ice is classified in ISI code 3251. Bottling purchased purified water is classified in ISI code 4224. Bottling liquors, malt beverages, and wines produced elsewhere is classified in ISI code 4228. 3122 Tobacco (2002 NAICS code 3122) Examples of products or processes of this industry are: Cigarettes Cigars Smoking and chewing tobacco Stemming or redrying of tobacco BE-799 (REV. 12/2002) Page 11 Part I -INDUSTRY CLASSIFICATIONS -Continued ^^" MANUFACTURING -Continued 3130 Textile mills (2002 NAICS code 313) Businesses engaged in transforming a basic fiber (natural or synthetic) into a product, such as a yarn or fabric, that is further manufactured into usable items, such as apparel, sheets and towels. The main processes in this industry include preparation and spinning of fiber, knitting or weaving of fabric, and the finishing of the product. Examples of businesses in this industry are: Fabric coating mills Lace manufacturers Fabric mills, broadwoven, narrow, and nonwoven Textile and fabric finishing mills Fiber, yarn, and thread mills NOTE - Manufacturing: Textile products (except apparel) from purchased fabric is classified in ISI code 3140. Apparel from purchased fabric is classified in ISI code 3150. Artificial and synthetic fibers is classified in ISI code 3252. 3140 Textile product mills (2002 NAICS code 314) Businesses engaged in producing non-apparel textile products using "cut and sew" processes, i.e., purchasing fabric and cutting and sewing the fabric to make the products. Examples of businesses in, or products of, this industry are: Carpet and rug mills Sheets and towels Curtain and linen mills Textile bag and canvas mills Rope, cordage, and twine Tire cord and tire fabric mills NOTE - Manufacturing: Lace curtains on lace machines is classified in ISI code 3130. Luggage is classified in ISI code 3160. Canvas blinds and shades is classified in ISI code 3370. 3150 Apparel (2002 NAICS code 315) Businesses engaged in producing garments using "cut and sew" processes, i.e., purchasing fabric and cutting and sewing to make apparel; and the manufacture of apparel by first knitting a fabric and then cutting and sewing the fabric into apparel. Examples of businesses in, or products of, this industry are: Athletic wear Hosiery and sock mills Belts and neckties Men's, women's, and children's cut and sew apparel Fur and leather apparel Underwear, nightwear, and outerwear knitting mills Gloves and mittens Work clothing Hats and caps pyOTE - Manufacturing: Orthopedic hosiery is classified in ISI code 3391. Athletic gloves, such as golf and batting gloves, is classified in ISI code 3399. Knitting fabric, when not combined with the production of complete apparel, is classified in ISI code 3130. 3160 Leather and allied products (2002 NAICS code 316) Businesses engaged in transforming hides into leather by tanning or curing, and fabricating the leather into products for final consumption. Also includes manufacturers of certain products made from "leather substitutes," such as rubber, plastic, or textiles. Examples of products or processes of this industry are: Footwear, including plastic and rubber footwear Personal leather goods (of any material, Handbags, purses, and wallets except precious metal) such as key Leather and hide tanning cases and coin purses Luggage Saddles NOTE - Manufacturing: Leather apparel and accessories is classified in ISI code 3150. Orthopedic footwear is classified in ISI code 3391. Personal goods of precious metal is classified in ISI code 3399. BE-799 (REV. 12/2002) Page 12 Part I -INDUSTRY CLASSIFICATIONS -Continued MANUFACTURING -Continued ^^^ 3210 Wood products (2002 NAICS code 321) Businesses engaged in tine manufacturing of wood products from logs that are cut into bolts, planks, or boards that then may be further cut or shaped by lathes or other shaping tools. Processing may include sawing, planing, shaping, laminating, and assembly. Examples of products of this industry are: Clothes pins Reconstituted wood Cork products Sawmill products Dowels Tool handles Millwork Veneers, plywood, and engineered wood products Mobile homes Wood trusses Prefabricated wood buildings Wood windows and doors NOTE - Manufacturing: Wood furniture frames is classified in ISI code 3370. Wood burial caskets is classified in ISI code 3399. 3221 Pulp, paper, and paperboard mills (2002 NAICS code 3221) Businesses engaged in the manufacture of pulp and paper, including newsprint and paperboard. Pulp is produced by separating cellulose fibers from impurities in wood or other materials. Paper is produced by matting these fibers into a sheet. Businesses that manufacture paper in combination with paper converting are classified in this industry. 3222 Converted paper products (2002 NAICS code 3222) Businesses engaged in converting paper or paperboard, but that are not engaged in manufacturing paper or paperboard. Converted paper products are produced from paper and other materials by various cutting and shaping techniques. Processing may include coating and laminating. Examples of products of this industry are: Coated and laminated papers, including combinations of paper, plastics film, and metal foils for packaging purposes Corrugated and solid fiber boxes Fiber cans, tubes, and drums Folding and setup paperboard boxes Gift wrap paper Paper bags Sanitary food containers and paper products Stationery products and paper office supplies Wallpaper NOTE - Manufacturing: Paper and/or paperboard and converting those products is classified in ISI code 3221. Photographic and blueprint paper is classified in ISI code 3259. Carbon paper is classified in ISI code 3399. 3231 Printing and related support activities (2002 NAICS code 3231) Businesses engaged in printing by transferring an image from a plate, screen, or computer file to some medium, such as paper, plastic, metal, apparel and textile articles, or wood. Processes include lithographic, gravure, screen, digital, and flexographic printing. Support activities include bookbinding, plate making, typesetting, and data imaging. Publishing of printed products, i.e., the reporting, writing, editing, and other processes that are required to create an edition of a newspaper, for example, is treated as an activity in its own right rather than as a subsidiary activity to a manufacturing activity (printing) and is classified in ISI code 5111. A business that also prints what it publishes is classified in ISI code 5111. Examples of products printed by businesses in, and processes of, this industry are: Books Newspapers Business forms Quick printing Digital printing Periodicals Greeting cards NOTE - Printing on fabrics (or "grey goods") is classified in ISI code 3130. Duplicating services and photocopying without printing services are classified in ISI code 5614. BE-799 (REV. 12/2002) Page 13 Part I -INDUSTRY CLASSIFICATIONS -Continued ^^^ MANUFACTURING -Continued 3242 Integrated petroleum refining and extraction (part of 2002 NAICS codes 21 1 and 3241 1 ) Businesses engaged in both extraction (operating oil and gas field properties) AND refining (separating crude petroleum into component products through such techniques as fractionation, cracking, and distillation). NOTE - Crude petroleum extraction without refining is classified in ISI code 2111. 3243 Petroleum refining without extraction (part of 2002 NAICS code 3241 1 ) Businesses engaged in separating crude petroleum into component products through such techniques as fractionation, cracking, and distillation. Examples of products of this industry are: Fuel oils Gasoline Jet fuel Kerosene NOTE - Crude petroleum extraction without refining is classified in ISI code 2111. Crude petroleum extraction combined with refining is classified in ISI code 3242. 3244 Asphalt and other petroleum and coal products (2002 NAICS code 3241, except 32411) Businesses engaged in further processing of refined petroleum and coal products. Examples of products or processes of this industry are: Asphalt and tar paving mixtures Petroleum lubricating oils, greases, and waxes, not Brake fluids produced in petroleum refineries Petroleum coke, not produced in petroleum refineries Roofing cements and coatings from refined petroleum Petroleum fuel briquettes, not produced in petroleum Saturating purchased mats and felts with asphalt refineries or tar NOTE - Manufacturing: Paper mats and felts and saturating them with asphalt or tar into sheets and rolls is classified in ISI code 3221. Petrochemicals from refined petroleum is classified in ISI code 3251. Synthetic lubricating oils and greases is classified in ISI code 3259. 3251 Basic chemicals (2002 NAICS code 3251) Businesses engaged in the transformation of organic and inorganic raw materials by a chemical process. Examples of products of this industry are: Alkalies and chlorine (100 percent) and Industrial bleaches other inorganic chemicals Industrial gases Carbon black Petrochemicals from refined petroleum or liquid Charcoal briquettes hydrocarbons, such as acyclic aliphatics, benzene. Cyclic crudes toluene, styrene, and xylene Dyes, pigments, lakes, and toners Potassium and sodium compounds Ethyl alcohol Sulphuric acids Gum and wood chemicals Synthetic flavors, artificial sweeteners, food dyes, and m.^-^- »« r perfume materials NOTE - Manufacturing: Food dyes (except synthetic) is classified in ISI code 3119. Household bleaches is classified in ISI code 3256. Electrostatic and photographic toners is classified in ISI code 3259. Chlorine for swimming pools is classified in ISI code 3259. Alumina is classified in ISI code 3313. 3252 Resins, synthetic rubbers, and artificial and synthetic fibers and filaments (2002 NAICS code 3252) Businesses engaged in manufacturing synthetic resins, plastics materials, and nonvulcanizable elastomers, and mixing and blending resins to a custom basis. Examples of products of this industry are: Butyl rubber, latex rubber, silicon rubber, Rayon, acetate, nylon, polyester, and other synthetic fibers and other synthetic rubbers Resins Plastics materials Thermoplastic elastomers NOTE - Manufacturing resin adhesives is classified in ISI code 3255. Processing natural, synthetic, or reclaimed rubber into intermediate or final products is classified in ISI code 3262. BE-799 (REV. 12/2002) Page 14 Part I -INDUSTRY CLASSIFICATIONS -Continued MANUFACTURING -Continued ^^^ 3253 Pesticides, fertilizers, and other agricultural chemicals (2002 NAICS code 3253) Businesses engaged in manufacturing nitrogenous or piiosphatic materials and mixing those ingredients into fertilizers or mixing ingredients produced elsewhere into fertilizers, or formulating and preparing agricultural and household pest control chemicals. Examples of products of this industry are: Ammonia fertilizers Plant hormones Compost and potting soil Urea Herbicides Insecticides NOTE - Manufacturing nitrogenous or phosphatic materials not for use as fertilizers is classified in IS! code 3251. 3254 Pharmaceuticals and medicines (2002 NAICS code 3254) Businesses engaged in one or more of the following activities: (1) manufacturing biological and medicinal products; (2) processing (grading, grinding and milling) botanical drugs and herbs; (3) isolating active medicinal principals from botanical drugs and herbs; and (4) manufacturing pharmaceutical products intended for internal and external consumption in such forms as ampules, tablets, capsules, vials, ointments, powders, solutions, and suspensions. Examples of products of this industry are: Alkaloids Endocrine substances Antibiotics In vitro and in vivo diagnostics Blood derivatives Vaccines Botanicals Vitamins 3255 Paints, coatings, and adhesives (2002 NAICS code 3255) Businesses engaged in mixing pigments, solvents, and binders into paints, stains, and other coatings and/or manufacturing allied paint products and adhesives. Examples of products of this industry are: Caulking compounds Paint and varnish removers Enamels Varnishes, lacquers, and shellacs Glues Wood sealers and preservers Paint NOTE - Manufacturing: Turpentine is classified in ISI code 3251. Artists' paints is classified in ISI code 3399. 3256 Soap, cleaning compounds, and toilet preparations (2002 NAICS code 3256) Businesses engaged in manufacturing and packaging soap and other cleaning compounds, surface active agents, and toilet preparations. Examples of products of this industry are: Air and room fresheners Oven cleaners Household bleaches Perfumes, cosmetics, creams, and lotions Laundry and dishwashing detergents Toothpaste and denture cleaners Natural glycerin Wetting agents, emulsifiers, and penetrants NOTE - Manufacturing industrial bleaches and synthetic glycerin is classified in ISI code 3251. 3259 Other chemical products and preparations (2002 NAICS code 3259) Examples of products of this industry are: Aerosol packaging (mixing chemicals and Gelatin capsules propellant in aerosol cans) Matches Automotive antifreeze Photographic (sensitized) film, paper, plates, and chemicals Custom compounding of purchased plastics resins Printing ink Explosives NOTE - Manufacturing: Medicinal gelatins is classified in ISI code 3254. Photographic toner cartridges is classified in ISI code 3333. Computer printer toner cartridges is classified in ISI code 3341. BE-799 (REV. 12/2002) Page 15 Part I -INDUSTRY CLASSIFICATIONS -Continued ^^^ MANUFACTURING -Continued 3261 Plastics products (2002 NAICS code 3261) Businesses engaged in the processing of new or spent (recycled) plastics resins into intermediate or final products, using such processes as compression molding, extrusion molding, injection molding, blow molding, and casting. Examples of products of this industry are: Laminated plastics plates, sheets, and shapes Plastics resilient floor coverings Plastics bottles Polystyrene and urethane foam Plastics cups and dinnerware Unsupported plastics films, sheets, and bags Plastics pipes and fittings Unsupported plastics profile shapes, such as rods Plastics plumbing fixtures, such as bathtubs and tubes and shower stalls NOTE - Manufacturing: Plastics footwear is classified in IS! code 3160. Coated paper is classified in ISI code 3222. Plastics hoses is classified in ISI code 3262. Plastics furniture parts is classified in ISI code 3370. Assembling plastics components into plumbing fixture fittings such as faucets is classified in ISI code 3329. 3262 Rubber products (2002 NAICS code 3262) Businesses engaged in processing natural, synthetic, or reclaimed rubber materials into intermediate or final products using processes such as vulcanizing, cementing, molding, extruding, and lathe-cutting. Examples of products or processes of this industry are: Latex foam Rubber medical sundries Prophylactics Tire repair materials Rebuilding and retreading tires Tires and inner tubes from natural and synthetic rubber Rubber and plastics hoses and belting Tread rubber Rubber floor mats and stair treads NOTE - Manufacturing: Rubber footwear is classified in ISI code 3160. Rubber gaskets, packing, and sealing devices is classified in ISI code 3399. Repairing tires is classified in ISI code 8110. 3271 Clay products and refractories (2002 NAICS code 3271) Businesses engaged in transforming mined or quarried clay and like materials into bricks, refractory, and ceramic products. Processes used include grinding, mixing, cutting, shaping, and honing raw materials. Heat and chemicals are often used to change the composition and properties of the intended product. Examples of products of this industry are: Bricks and other clay structural products Earthenware and vitreous china table and kitchen articles Ceramic wall and floor tiles Porcelain electric supplies Clay and vitreous china plumbing fixtures Pottery Crucibles and furnace linings NOTE - Manufacturing: Enameled iron and steel plumbing fixtures is classified in ISI code 3329. Ferrite microwave devices and electronic components is classified in ISI code 3344. 3272 Glass and glass products (2002 NAICS code 3272) Businesses engaged in manufacturing glass and glass products. Glass is produced by heating silica sand to the melting point and then drawn, floated, or blow molded to the desired shape. Glass products may be produced from purchased glass. Examples of products of this industry are: Flat glass Glass containers Glassware Pressed and blown glass Unsheathed fiber optic material NOTE - Manufacturing: Glass wool (fiberglass) insulation is classified in ISI code 3279. Optical lenses is classified in ISI code 3333. Fiber optic cable from purchased fiber optic strands is classified in ISI code 3359. Ophthalmic lenses is classified in ISI code 3391. BE-799 (REV. 12/2002) Page 16 Part I -INDUSTRY CLASSIFICATIONS -Continued 315 MANUFACTURING -Continued 3273 Cement and concrete products (2002 NAICS code 3273) Businesses engaged in manufacturing hydraulic cement from mined, quarried, manufactured, or purchased lime and businesses engaged in manufacturing concrete from mined, quarried, or purchased sand and gravel. Examples of products of this industry are: Concrete brick and block Concrete pipe Portland cement Ready-mix concrete NOTE - Manufacturing: Lime is classified in IS! code 3274. Dry mixed concrete is classified in IS! code 3279. 3274 Lime and gypsum products (2002 NAICS code 3274) Businesses engaged in manufacturing lime from mined, quarried, collected, or purchased calcitic or dolomitic limestone or other calcareous material and businesses engaged in manufacturing gypsum products from mined, quarried, or purchased gypsum. Examples of products of this industry are: Lime Plaster Plasterboard Wallboard 3279 Other nonmetaliic mineral products (2002 NAICS code 3279) Examples of products of this industry are: Abrasives and abrasive products Mica products Cut stone and stone products Mineral wool Dry mixed concrete Papier-mache Fiberglass insulation Synthetic gemstones Ground or treated mineral and earth NOTE - Manufacturing metallic scouring sponges and soap-impregnated scouring pads is classified in ISI code 3329. 331 1 Iron and steel mills and ferroalloys (2002 NAICS code 3311) Examples of products or processes of this industry are: Direct reduction of iron ore Pig iron manufacturing in molten or solid form Ferroalloys Steel pipes and tubes Ferrous powder Steel shapes, such as plates, sheets, strips, rods, wire, and bars Pig iron conversion into steel 3312 Steel products from purchased steel (2002 NAICS code 3312) Businesses engaged in manufacturing iron and steel pipe and tube, drawing steel wire, and rolling shapes from purchased iron or steel. NOTE - Manufacturing wire products from purchased wire is classified in ISI code 3326. 3313 Alumina and aluminum production and processing (2002 NAICS code 3313) Examples of products or processes of this industry are: Alumina refining, generally from bauxite Aluminum alloys, powder, paste, or flake Aluminum primary production from alumina Aluminum shape production, such as sheet, plate, foil, rod, bar, pipe, tube, and wire Aluminum smelting (secondary) from scrap or dross NOTE - Manufacturing aluminum oxide abrasives and refractories are classified in ISI code 3279. BE-799 (REV. 12/2002) Page 17 316 Part I -INDUSTRY CLASSIFICATIONS -Continued MANUFACTURING -Continued 3314 Nonferrous metal (except aluminum) production and processing (2002 NAICS code 3314) Businesses engaged in smelting ores, such as copper, lead, and zinc, into nonferrous metals; primary refining of nonferrous metals using electrolytic or other processes; and/or rolling, drawing, extruding, and alloying of copper and other nonferrous metals. NOTE - Mining and producing copper and other nonferrous concentrates, including gold and silver bullion, by processes such as solvent extraction or electrowinning are classified in ISI codes 2125-7. Primary production and secondary smelting of aluminum are classified in ISI code 3313. Die-casting purchased copper is classified in ISI code 3315. Manufacturing wire products from purchased copper wire is classified in ISI code 3326. Insulating purchased copper and nonferrous wire is classified in ISI code 3359. 3315 Foundries (2002 NAICS code 3315) Businesses engaged in pouring molten metal into molds or dies to form castings. Foundries may clean and deburr the castings they manufacture. More involved processes, such as tapping, threading, milling, or machining to tight tolerances that transform castings into more finished products are classified in other manufacturing industries. Examples of businesses in this industry are: Ferrous metal foundries that manufacture castings such as cast iron pipe, skillets, and manhole covers Nonferrous metal foundries, such as aluminum foundries Steel foundries NOTE - Businesses both producing castings and further manufacturing them using processes such as machining or assembling to create a specific manufactured product are classified in the industry of the finished product. 3321 Forging and stamping (2002 NAICS code 3321) Businesses engaged in manufacturing iron, steel, and nonferrous forgings from purchased metals. Examples of products of this industry are: Crowns and closures Metal custom roll forming products Metal stamped and spun products (except automotive, cooking and kitchen utensils and coins) Powder metallurgy products NOTE - Manufacturing: Iron and steel forgings in integrated iron and steel mills is classified in ISI code 3311. Automotive stampings is classified in ISI code 3363. 3322 Cutlery and handtools (2002 NAICS code 3322) Examples of products of this industry are: Cutlery and flatware of nonprecious and precious plated metal Kitchen utensils and pots and pans, stamped or spun Nonelectric kitchen tools, such as can openers and peelers Nonpowered hand and edge tools, such as pliers, wrenches, and screwdrivers Safety razors and razor blades Saw blades and handsaws Scissors and shears Yard tools, such as rakes, shovels, and wheelbarrows NOTE - Manufacturing: Cast metal cooking utensils is classified in ISI code 3315. Power-driven handtools is classified in ISI code 3339. Precious metal (except precious plated) and pewter cutlery and flatware is classified in ISI code 3399. 3323 Architectural and structural metals (2002 NAICS code 3323) Examples of products of this industry are: Bar joists, concrete reinforcing bars, and other fabricated structural metal products Fabricated metal plate work Flumes, ducts, and dampers and other sheet metal work Metal railings, fences, and moldings and other ornamental and architectural metal products Metal windows and doors Prefabricated metal buildings, panels, and sections NOTE - Manufacturing: Metal covered woodframed windows and doors is classified in ISI code 3210. Mobile homes is classified in ISI code 3210. BE-799(REV. 12/2002) Page 18 Part I -INDUSTRY CLASSIFICATIONS -Continued 317 MANUFACTURING -Continued 3324 Boilers, tanks, and shipping containers (2002 NAICS code 3324) Examples of products of this industry are: Bulk storage tanks Septic tanks Metal cans, barrels, drums, kegs, and pails Steam condensers Power boilers and heat exchangers NOTE - Manufacturing heating boilers and hot water heating boilers is classified in IS! code 3334. 3325 Hardware (2002 NAICS code 3325) Examples of products of this industry are: Locks (except coin-operated) and keys Metal handles and knobs Metal hinges and latches NOTE - Manufacturing: Nails and spikes from wire drawn elsewhere is classified in IS! code 3326. Bolts, nuts, screws, rivets, and washers is classified in ISI code 3327. Coin-operated locking mechanisms is classified in ISI code 3333. Time locks is classified in ISI code 3345. 3326 Spring and wire products (2002 NAICS code 3326) Businesses engaged in manufacturing heavy gauge springs by processes including cutting, bending, and heat winding metal rods or strip stock, or in manufacturing light gauge springs and fabricated wire products from wire drawn elsewhere. Examples of products of this industry are: Barbed wire Wire carts Chain link fencing Wire garment hangers Heavy and light gauge springs Wire rope, cable, and strands Nails Wire screening Paper clips and staples NOTE - Manufacturing watch and clock springs from purchased wire is classified in ISI code 3345. 3327 Machine shops; turned products; and screws, nuts, and bolts (2002 NAICS code 3327) Businesses engaged in: Custom machining parts for machines and equipment using machine tools such as lathes, automatic screw machines, and machines for boring, grinding, and milling Machining precision turned products Manufacturing metal bolts, nuts, screws, rivets, and washers 3328 Coating, engraving, heat treating, and allied activities (2002 NAICS code 3328) Businesses engaged in: Electroplating, plating, anodizing, coloring and finishing metals and metal formed products Enameling, lacquering, and varnishing metals and metal formed products Engraving, chasing, or etching metals and metal formed products (except printing plates) Heat treating metals and metal formed products Hot dip galvanizing metals and metal formed products Powder coating metals and metal formed products 3329 Other fabricated metal products (2002 NAICS code 3329) Examples of products of this industry are: Ball and roller bearings Metal ladders Enameled iron and metal sanitary ware, sinks. Ordnance and accessories, including artillery bathtubs and toilets and ammunition Fabricated pipes and fittings Plumbing fixture fittings and trim, metal and plastics. Fluid power valves and hose fittings such as faucets, shower heads, and flush valves Industrial patterns, such as foundry cores Safes and vaults Industrial valves Small arms ..^-.-.- », r Steel wool NOTE - Manufacturing: Plastics plumbing fixtures, such as plastics tubs and shower stalls, is classified in IS! code 3261. Cast iron pipes and fittings is classified in ISI code 3315. Safe and vault locks is classified in ISI code 3325. Hydraulic intake and exhaust valves for internal combustion engines is classified in ISI code 3363. BE-799 (REV. 12/2002) Page 19 Part i -INDUSTRY CLASSIFICATIONS -Continued ^^^ MANUFACTURING -Continued 3331 Agriculture, construction, and mining machinery (2002 NAICScode 3331) Businesses engaged in manufacturing farm machinery and equipment, construction equipment, surface mining equipment, and logging and forestry equipment. Examples of products of this industry are: Bulldozers Lawnmowers and other powered home lawn and Coal breakers garden equipment Concrete mixers Mine cars Core and rock drills Oil and gas field equipment Dairy farm machinery and Pavers livestock equipment Planting, seeding, fertilizing, and harvesting Farm tractors machinery NOTE - Manufacturing: Farm handtools and nonpowered lawnmowers and other garden equipment is classified in ISI code 3322. Coal and ore conveyors and farm conveyors and elevators is classified in ISI code 3339. Offshore oil and gas well drilling and floating production platforms is classified in ISI code 3366. 3332 Industrial machinery (2002 NAICS code 3332) Examples of products of this industry are: Bookbinding, typesetting, and other printing machinery Chemical machinery and equipment and petroleum manufacturing equipment Food and beverage manufacturing machinery, such as: Bakery ovens Dough mixers Ice cream freezers Meat and poultry preparation equipment Plastics compression, extrusion, injection molding, and other plastics and rubber industry machinery Pulp, paper, and paper product machinery Sawmill and woodworking machinery (except hand held), such as: Band saws Circular saws Sanding machinery Semiconductor machinery, such as wafer processing equipment Sewing machines (including household) Textile machinery NOTE - Manufacturing: Planes, axes, drawknives, and handsaws is classified in ISI code 3322. Power driven handtools is classified in ISI code 3339. 3333 Commercial and service industry machinery (2002 NAICS code 3333) Examples of products of this industry are: Automatic vending machinery Automotive maintenance equipment, except mechanic's handtools Commercial cooking equipment Commercial laundry, dry-cleaning, and pressing machines Office machinery (except computers), such as calculators and dedicated word processing equipment Optical instrument and lens manufacturing, such as: Binoculars Lenses (except ophthalmic focus) Microscopes Photographic and photocopying equipment, such as: Cameras (except television, video, and digital cameras) Film development equipment Projectors NOTE - Manufacturing: Sensitized film, paper, cloth, and plates is classified in ISI code 3259. Mechanic's handtools is classified in ISI code 3322. Computers and peripheral equipment is classified in ISI code 3341. Video cameras, broadcast and studio, is classified in ISI code 3342. Facsimile equipment is classified in ISI code 3342. Video cameras (except broadcast and studio) is classified in ISI code 3343. Time clocks is classified in ISI code 3345. Ophthalmic focus lenses, such as eyeglass lenses and contact lenses, is classified in ISI code 3391. BE-799 (REV. 12/2002) Page 20 Part I -4IMDUSTRY CLASSIFICATIONS -Continued MANUFACTURING -Continued ^^^ 3334 Ventilation, heating, air-conditioning, and commercial refrigeration equipment (2002 NAICS code 3334) Examples of products of this industry are: Air-conditioning (except motor vehicle) equipment, such as central and room air conditioners Air purification equipment, such as industrial dust and fume collection equipment and warm air furnace filters Attic fans Commercial refrigeration equipment, such as water coolers, soda fountains, and beer dispensing equipment Heating equipment, such as: Furnaces Heating boilers and stoves Wall and baseboard heating units Industrial and commercial fans and blowers, such as exhaust and ventilating fans Industrial refrigeration equipment NOTE - Manufacturing: Industrial process furnaces and ovens is classified in ISI code 3339. Household fans (except attic), portable electric airspace heaters, humidifiers and dehumidifiers, and refrigerators and freezers is classified in ISI code 3352. Motor vehicle air conditioners and compressors is classified in ISI code 3363. 3335 Metalworking machinery (2002 NAICS code 3335) Businesses engaged in manufacturing machinery that cuts, molds, and shapes metal. Examples of products of this industry are: Cutting tools and machine tools accessories, such as twist drills and counter sinks Industrial molds, such as die-casting and foundry-casting molds Machine tools, such as: Die-casting machines Forging machines Lathes Milling machines Metal molds for plaster, plastics, rubber, and glass working machinery Rolling mill machinery and equipment Special die and tools, die sets, and jigs and fixtures Wire drawing and fabricating machines NOTE - Manufacturing: Cutting dies (except metal cutting) is classified in IS! code 3322. Welding and soldering equipment is classified in ISI code 3339. 3336 Engines, turbines, and power transmission equipment (2002 NAICS code 3336) Examples of products of this industry are: Electric outboard motors Gasoline and diesel engines, except motor vehicle and aircraft Industrial high-speed drives and gears Mechanical power transmission equipment, except motor vehicle and aircraft, such as: Brakes Clutches Joints Plain bearings and bushings Speed changers Turbine and turbine generator set units, such as steam, hydraulic, gas, and wind NOTE - Manufacturing: Motor vehicle engines and power transmission equipment is classified in ISI code 3363. Gasoline aircraft engines, transmission equipment, and turbines is classified in ISI code 3364. BE-799 (REV. 12/2002) Page 21 Part I -INDUSTRY CLASSIFICATIONS -Continued ^^^ MANUFACTURING -Continued 3339 Other general purpose machinery (2002 NAICS code 3339) Examples of products of this industry are: Air and gas compressors Fluid power cylinders, actuators, pumps, and motors Industrial process furnaces and ovens Material handling equipment, such as: Automobile lifts Conveyors Elevators and escalators Industrial trucks and tractors Overhead traveling cranes Nonagricultural spraying and dusting equipment Packaging machinery Power-driven hand tools Pumps and pumping equipment Scales and balances (except laboratory) Welding and soldering equipment NOTE - Manufacturing: Hand held soldering tools is classified in ISI code 3322. Farm type tractors, agricultural spraying and dusting equipment, and construction cranes is classified in ISI code 3331. Bakery ovens and industrial kilns is classified in ISI code 3332. Industrial refrigeration and air-conditioning compressors is classified in ISI code 3334. Transformers for arc-welding is classified in ISI code 3353. Pumps and compressors for motor vehicles is classified in ISI code 3363. Laboratory scales, furnaces, and ovens is classified in ISI code 3391. 3341 Computer and peripheral equipment (2002 NAICS code 3341) Businesses engaged in the design and use of integrated circuits and the application of highly specialized miniaturization technologies in the manufacture of computers and electronic products. Machinery that incorporates electronic computers for operation or control purposes and embedded control applications are classified in other manufacturing industries based on the classifications of the complete machinery. Also, the manufacture of other parts such as casings, stampings, cable sets, switches, etc. for computers are classified in other manufacturing industries based on their associated production processes. Examples of products of this industry are: Automatic teller machines Computer storage devices, such as: CD-ROM drives Floppy disk drives Hard disk drives Tape storage and backup drives Computer terminals Electronic computers, such as: Laptops Mainframes Personal computers Servers Workstations Peripheral equipment such as: Keyboards Mice, trackballs, and joystick devices Monitors Optical and bar code scanners Plotters Printers NOTE - Manufacturing: Digital telecommunication switches, and local area network and wide area network communication equipment, such as bridgers, routers, and gateways, is classified in ISI code 3342. Internal loaded printed circuit board devices such as sound, video, and network interface cards; modems; and solid state storage devices for computers is classified in ISI code 3344. Magnetic and optical recording media is classified in ISI code 3346. BE-799 (REV. 12/2002) Page 22 Part I -INDUSTRY CLASSIFICATIONS -Continued MANUFACTURING -Continued 321 3342 Communications equipment (2002 NAICS code 3342) Businesses engaged in manufacturing telephone and data communications equipment that may be stand alone or board level components of a larger system and/or engaged in manufacturing radio and television broadcast and wireless communication equipment. Examples of products of this industry are: Answering machines Communications antennas Facsimile machines Fire and security alarm equipment Global positioning system equipment Intercoms Local area network and wide area network communications equipment Pagers Radios, fixed and mobile Space satellites Studio and broadcast video cameras Switching equipment Telephones, wired, cordless, and cellular Television broadcast equipment NOTE - Manufacturing: Household audio and video equipment is classified in ISI code 3343. Internal and external computer modems, fax/modems and telephone transformers is classified in ISI code 3344. 3343 Audio and video equipment (2002 NAICS code 3343) Businesses engaged in manufacturing electronic audio and video equipment for home entertainment, motor vehicles, public address systems, and musical instrument amplification. Examples of products of this industry are: Amplifiers Audio receivers Compact disc players Magnetic and digital audio tape recorders and players Phonographs and microphones Radio sets Speakers and speaker systems Televisions Video cameras (except broadcast and studio) Video cassette recorders and players NOTE - Manufacturing: Mobile radios, such as citizens band and FM transceivers for motor vehicle use, cable decoders, satellite television equipment, and studio and broadcast video cameras is classified in ISI code 3342. Phonograph needles and cartridges is classified in ISI code 3344. 3344 Semiconductors and other electronic components (2002 NAICS code 3344) Examples of products of this industry are: Bare and loaded printed circuit boards Electron tubes and parts Electronic capacitors, condensers, and resistors Electronic coils, transformers, and other inductors Electronic switches and transducers LCD (liquid crystal display) unit screens Light emitting diodes Modems Semiconductors and related devices, such as: Diodes Integrated circuits Memory chips Optoelectronic devices Transistors NOTE - Manufacturing: Glass blanks for electron tubes is classified in ISI code 3272. Communications antennas and telephone system modules is classified in ISI code 3342. X-ray tubes is classified in ISI code 3345. BE-799 (REV. 12/2002) Page 23 322 Part I -INDUSTRY CLASSIFICATIONS -Continued MANUFACTURING -Continued 3345 Navigational, measuring, electromedical, and control instruments (2002 NAICS code 3345) Examples of products of this industry are: Aircraft engine instruments Automatic environmental controls for residential, commercial, and appliance use, such as: Gas burner controls Humidstats Refrigeration controls Thermostats Electromedical and electrotherapeutic apparatus, such as: Electrocardiographs Hearing aids Magnetic resonance imaging equipment Medical ultrasound equipment Pacemakers Instruments and related products for measuring, displaying, and controlling industrial process variables, such as: temperature, humidity, pressure, flow, level, and viscosity Instruments for measuring and testing of electricity and electrical signals, such as: Ammeters Circuit testers Voltmeters Wattmeters Irradiation apparatus, such as: Computerized axial tomography (CT/CAT scanners) apparatus Gamma-ray equipment X-ray systems Laboratory instruments for chemical and physical analysis of solid, fluid, gaseous, or composite material samples, such as: Hematology instruments Ph meters Spectrophotometric instruments Meteorological equipment Radiation detecting equipment Search, detection, navigation, guidance, aeronautical, and nautical systems and instruments, such as: Aircraft and missile control systems Gyroscopes Radar Sonar Surveying and drafting equipment Totalizing fluid meters and counting devices, such as: Fare collection equipment Parking meters Water and gas meters Watches, clocks, and parts NOTE - Manufacturing: Optical alignment and test and inspection equipment is classified in ISI code 3333. Global positioning system equipment is classified in ISI code 3342. Motor control switches and relays is classified in ISI code 3353. Appliance switches is classified in ISI code 3359. Nonelectrical medical and therapeutic apparatus is classified in ISI code 3391. 3346 Manufacturing and reproducing magnetic and optical media (2002 NAICS code 3346) Examples of products or processes of this industry are: Blank audio and video tapes Blank diskettes Blank optical disks Hard drive media Laser disks Mass duplication of (copying of) audio, video, software, and other data on magnetic, optical, similar media Mass reproduction of computer software (generally excluding software development) onto diskettes, CD-ROMs, and game cartridges Prerecorded compact disks (except software) Tape and record reproducing Theatrical duplication of motion pictures NOTE - Designing, developing, or publishing prepackaged software or documentation; and integrated facilities that publish and reproduce software, are classified in ISI code 5112. Audio and video producing and publishing; integrated facilities that publish and reproduce audio, video, and film materials; and related services are classified in ISI codes 5121 or 5122, depending on the product. BE 799 (REV. 12/2002) Page 24 Part I -INDUSTRY CLASSIFICATIONS -Continued MANUFACTURING -Continued 323 3351 Electric lighting equipment (2002 NAICScode 3351) Examples of products of this industry are: Commercial, industrial, institutional, and residential lighting fixtures Electric lamp bulbs and parts Flashlights and other portable lamps Lampshades (except glass and plastics) Motor vehicle light bulbs Nonelectric lighting fixtures, such as gas lanterns NOTE - Manufacturing: Plastics lampshades is classified in ISI code 3261. Glass parts for lighting fixtures is classified in ISI code 3272. Light emitting diodes is classified in ISI code 3344. Current-carrying wiring devices for lighting fixtures is classified in ISI code 3359. Motor vehicle lighting fixtures is classified in ISI code 3363. 3352 Household appliances (2002 NAICS code 3352) Examples of products of this industry are: Barbecue grills Dishwashers and disposals Electric blankets and portable electric space heaters Refrigerators, freezers, stoves, ovens, and other major household appliances Toasters, household vacuum cleaners, ceiling fans and other small electrical appliances and housewares Washers and dryers, household and coin operated NOTE - Manufacturing: Household sewing machines is classified in ISI code 3332. Commercial and industrial cooking and cleaning equipment is classified in ISI code 3333. Commercial and industrial refrigerators, room air conditioners, attic fans, and commercial ventilation and exhaust fans is classified in ISI code 3334. 3353 Electrical equipment (2002 NAICS code 3353) Examples of products of this industry are: Motors and generators such as: Fractional and integral horsepower electric motors Land transportation motors and generators Prime mover generator sets Power, distribution, and specialty transformers, such as: Florescent lamp ballasts Lighting transformers Welding transformers Relays and industrial controls, such as: Digital positioning equipment Electronic relays Solenoids Switchgear and switchboard apparatus, such as: Circuit breakers Control panels Fuses 3359 NOTE - Manufacturing: Turbine generator set units and electric outboard motors is classified in ISI code 3336. Electronic transformers and switches is classified in ISI code 3344. Environmental controls and industrial process control instruments is classified in ISI code 3345. Switches for electrical circuits is classified in ISI code 3359. Starting motors and generators for internal combustion engines is classified in ISI code 3363. Other electrical equipment and components (2002 NAICS code 3359) Examples of products of this industry are: Batteries Carbon and graphite electrodes and brushes Conduits, junction boxes, and other noncurrent- carrying wiring devices Current-carrying wiring devices, such as ground fault circuit interrupters and wiring switches Electric bells and gongs Electrical cord sets Electric garage door and other electric openers Electrical outlets, switches, and other current- carrying wiring devices NOTE - Manufacturing: Porcelain and ceramic insulators is classified in ISI code 3271. Unsheathed fiber-optic materials is classified in ISI code 3272. Drawn nonferrous wire is classified in ISI code 3313 or 3314 (depending on the material drawn). Cable sets consisting of insulated wire and connectors for electronic applications is classified in ISI code 3344. Electronic capacitors, condensers, laser diodes, and semiconductor rectifiers is classified in ISI code 3344. Fiber-optic cable from purchased fiber-optic strand and nonferrous wire and cable from purchased nonferrous wire and other communication and energy wire and cable Industrial capacitors and condensers Lasers and laser parts for incorporation into other equipment Uninterruptable power supplies BE-799 (REV. 12/2002) Page 25 3361 3362 Part I -INDUSTRY CLASSIFICATIONS -Continued ^^ MANUFACTURING -Continued Motor vehicles (2002 NAICS code 3361) Businesses engaged in manufacturing complete motor vehicles (body, chassis or unibody), or chassis only. Examples of products of this industry are: Automobiles and minivans Buses Heavy duty trucks NOTE - Manufacturing off highway construction equipment is classified in ISI code 3331. Motor vehicle bodies and trailers (2002 NAICS code 3362) Businesses engaged in manufacturing motor vehicle bodies, cabs, trucks, automobile and utility trailers, truck trailer chassis, detachable trailer bodies, and detachable trailer chassis. The products may be sold separately or may be assembled on purchased chassis and sold as complete vehicles. Examples of products of this industry are: Light trucks and sport utility vehicles Motor homes (complete) Automobile bodies Covers for mounting on pickup trucks Motor homes on a purchased chassis Travel trailers and campers Truck bodies Truck cabs NOTE - Manufacturing: Mobile homes is classified in ISI code 3210. Motor homes chassis and assembly of complete motor homes is classified in ISI code 3361. 3363 Motor vehicle parts (2002 NAICS code 3363) Examples of products of this industry are: Air bags Brake systems and related components Electrical and electronic equipment for motor vehicles, such as: Alternators Cruise control mechanisms Electronic control modules Ignition apparatus and parts Starters Filters for internal combustion engines Fuel injection systems Gasoline engine parts, whether or not for vehicular use, such as: Carburetors Crankshafts Pistons Valves Water pumps NOTE - Manufacturing: Stationary and diesel engines is classified in ISI code 3336. Car stereos is classified in ISI code 3343. Automotive lamps and bulbs is classified in ISI code 3351. Electric motors for motor vehicles is classified in ISI code 3353. Batteries is classified in ISI code 3359. 3364 Aerospace products and parts (2002 NAICS code 3364) Businesses engaged in (1) manufacturing complete aircraft, missiles, and space vehicles; and engines, propulsion units, auxiliary equipment and parts; (2) research and development units of aerospace manufacturers primarily engaged in the production of prototypes; and (3) factory conversion and overhaul of aircraft and propulsion systems. Gasoline engines for motor vehicles Lighting fixtures for vehicles Metal stampings Motor vehicle air-conditioning systems Mufflers Radiators Seating and interior trim Steering and suspension components (except springs), such as: Ball joints Shock absorbers Tie rods Transmissions and power train parts, such as: Clutches Torque converters Universal joints Examples of products of this industry are: Aircraft Aircraft engines, parts, and components Guided missiles Rockets Spacecraft and their parts, except satellites NOTE - Manufacturing: Aircraft fluid valve assemblies is classified in ISI code 3329. Space satellites is classified in ISI code 3342. Aeronautical, navigational, and guidance systems is classified in ISI code 3345. Aircraft internal combustion engines and parts is classified in ISI code 3363. The repair of aircraft or aircraft engines (except overhaul, conversion, or rebuilding) is classified in ISI code 4880. BE-799 (REV. 12/2002) Page 26 Part I -INDUSTRY CLASSIFICATIONS -Continued 325 MANUFACTURING -Continued 3365 Railroad rolling stock (2002 NAICS code 3365) Examples of products or activities of this industry are: Locomotives and their frames and parts, building and rebuilding Rail layers and ballast distributors Railroad, street, and rapid transit cars Railway track maintenance equipment NOTE - Repair businesses owned by railroad and local transit companies are classified in ISI code 4880. Repair businesses not owned by railroad and local transit companies are classified in ISI code 8110. 3366 Ship and boat building (2002 NAICS code 3366) Businesses engaged in operating a shipyard or manufacturing boats. Shipyards are fixed facilities with drydocks and fabrication equipment capable of building a ship. Activities of shipyards include the construction of ships, their repair, conversion and alteration, the production of prefabricated ship and barge sections and specialized services, such as ship scaling. Examples of products of this industry are: Barges Canoes Cruise ships Freighters Offshore oil and gas well drilling and production platforms (whether or not self-propelled) Recreational power boats Sailboats Submarines NOTE - Manufacturing: Inflatable plastic boats is classified in ISI code 3261. Rubber boats is classified in ISI code 3262. 3369 Other transportation equipment (2002 NAICS code 3369) Examples of products of this industry are: Bicycles Golf carts Military armored vehicles and tanks Motorcycles Snowmobiles 3370 Furniture and related products (2002 NAICS code 337) Businesses engaged in producing furniture and related articles such as mattresses, window blinds, cabinets, and fixtures. Processes used include the cutting, bending, molding, laminating and assembly of such materials as wood, metal, glass, plastics, and rattan. Furniture may be produced on a stock or custom basis and may be shipped assembled or unassembled. Examples of products of this industry are: Bathroom vanities Blinds and shades Custom architectural woodwork and millwork Display fixtures Furniture frames and parts Mattresses Metal, wood, plastic, rattan and wicker household furniture Office and institutional furniture and fixtures Showcases, partitions, shelving, and lockers Television, radio, and sewing machine cabinets Upholstered and nonupholstered wood household furniture Wall shelving units Wood kitchen cabinets NOTE - Manufacturing: Curtains, draperies, and canvas awnings is classified in ISI code 3140. Seating for transportation equipment is classified in ISI code 3363. Laboratory and hospital furniture is classified in ISI code 3391. BE-799 (REV. 12/2002) Page 27 326 Part I -INDUSTRY CLASSIFICATIONS -Continued MANUFACTURING -Continued 3391 Medical equipment and supplies (2002 NAICS code 3391) Examples of products of this industry are: Dental equipment and supplies, such as: Artificial teeth Dental chairs Dental hand instruments Laboratory apparatus and furniture, such as: Balances and scales Centrifuges Laboratory cabinets Ophthalmic goods, such as: Contact lenses Eyeglasses Goggles Sunglasses Surgical and medical instruments, appliances, and supplies, such as: Catheters Hospital beds Syringes NOTE - Manufacturing: Molded plastic lens blanks is classified in ISI code 3261. Molded glass lens blanks is classified in ISI code 3272. Laboratory instruments, x-ray apparatus, and electromedical apparatus is classified in ISI code 3345. Retailing and grinding of prescription eyeglasses and contact lenses is classified in ISI code 4461. 3399 Other miscellaneous manufacturing (2002 NAICS code 3399) includes the following: 1. Manufacturing jewelry and silverware Businesses engaged in one or more of the following: (1) manufacturing, engraving, chasing or etching jewelry, novelties or precious metal flatware, and other plated ware; (2) stamping coins; (3) manufacturing unassembled jewelry parts and stock shop products such as sheet, wire, and tubing; (4) cutting, slabbing, tumbling, carving, engraving, polishing or faceting precious or semiprecious stones and gems; (5) recutting, repolishing and setting gem stones; and (6) drilling, sawing, and peeling cultured and costume pearls; and (7) metal personal goods (e.g., compacts, cigarette cases). Examples of jewelry and silverware products are: Bracelets Brooches and pins Lapidary work Necklaces Precious metal (except precious plated) cutlery Rings, precious and costume NOTE - Manufacturing: Synthetic stones or gemstones is classified in ISI code 3279. Nonprecious and precious plated metal cutlery and flatware is classified in ISI code 3322. 2. Manufacturing sporting and athletic goods Examples of sporting and athletic goods products are: Baseball, football, and basketball equipment Billiard and pool tables Fishing tackle and equipment Gymnasium and playground equipment Roller skates and ice skates NOTE - Manufacturing: Athletic apparel is classified in ISI code 3150. Athletic footwear is classified in ISI code 3160. Small arms and small arms ammunition is classified in ISI code 3329. 3. Manufacturing dolls, toys, and games Examples of doll, toy, and game products are: Children's vehicles, such as scooters, wagons, and sleds Craft and hobby kits Dolls, doll parts, doll clothes, and action figures Games (including electronic) NOTE - Manufacturing: Electronic video game cartridges and mass reproduction of these cartridges is classified in ISI code 3346. Bicycles and metal tricycles is classified in ISI code 3369. BE-799 (REV. 12/2002) Page 28 Part I -INDUSTRY CLASSIFICATIONS -Continued MANUFACTURING -Continued ^^^ 3399 Other miscellaneous manufacturing -Continued (2002 NAICS code 3399) 4. Manufacturing office supplies (except paper) Examples of office supply products are: Artists' air brushes, palettes, colors, and waxes Stamps, hand and embossing Crayons and chalks Staplers and pencil sharpeners Pens, pencils, and refill cartridges NOTE - Manufacturing: Paper office supplies is classified in ISI code 3222. Manifold business forms and loose-leaf binders is classified in ISI code 3231. Writing, drawing, and India inks is classified in ISI code 3259. Inkjet cartridges is classified in ISI code 3259. Rubber erasers is classified in ISI code 3262. Drafting tables and boards is classified in ISI code 3370. 5. Manufacturing signs Businesses engaged in manufacturing signs and related displays of all materials (except paper and paperboard). NOTE - Manufacturing paperboard displays is classified in ISI code 3222. Printing signs is classified in ISI code 3231. Sign lettering and painting is classified in ISI code 5418. 6. Other miscellaneous manufacturing Examples of other miscellaneous manufactured products are: Brooms, brushes, and mops Gaskets, packing, and sealing devices Burial caskets Hair pieces Candles Musical instruments Cigar and cigarette lighters Portable fire extinguishers Coin-operated amusement machines Tobacco pipes Fasteners, buttons, needles, and pins Umbrellas WHOLESALE TRADE The wholesale trade sector (ISI codes 4231-4251) comprises businesses engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The wholesaling process is an intermediate step in the distribution of merchandise. Wholesalers are organized to sell or arrange the purchase or sale of (a) goods for resale (goods sold to other wholesalers or retailers), (b) capital or durable nonconsumer goods, and (c) raw and intermediate materials and supplies used in production. Wholesalers sell merchandise to other businesses and normally operate from a warehouse or office. These warehouses and offices are characterized by having little or no display of merchandise. In addition, neither the design nor the location of the premises is intended to solicit walk-in traffic. Wholesalers do not normally use advertising directed to the general public. Customers are generally reached initially via telephone, in-person marketing, or by specialized advertising that may include Internet and other electronic means. Although in general, wholesaling normally denotes sales in large volumes, durable nonconsumer goods may be sold in single units. Sales of capital or durable nonconsumer goods used in the production of goods and services, such as farm machinery, medium and heavy duty trucks, and industrial machinery are included in wholesale trade. The sector comprises two main types of wholesalers: (1) merchant wholesalers that sell goods on their own account and (2) business to business electronic markets, agents, and brokers that arrange sales and purchases for others generally for a commission or fee. MERCHANT WHOLESALERS, DURABLE GOODS 4231 Motor vehicles and motor vehicle parts and supplies merchant wholesalers (2002 NAICS code 4231) Merchant wholesale distribution of products such as: Automobiles Motorcycles Motor homes Tires and tubes Motor vehicle supplies, parts. Trailers and accessories Trucks BE-799 (REV. 12/2002) Page 29 Part I -INDUSTRY CLASSIFICATIONS -Continued 328 WHOLESALE TRADE -Continued MERCHANT WHOLESALERS, DURABLE GOODS -Continued 4232 Furniture and home furnishing merchant wholesalers (2002 NAICS code 4232) Merchant wholesale distribution of products such as: Carpets and other floor surfaces Linens and towels China, glassware, and earthenware Office furniture Household-type furniture Public building furniture Household-type kitchen utensils and pans NOTE - Merchant wholesaling of: Hospital beds and medical furniture is classified in ISI code 4234. Precious metal flatware is classified in ISI code 4239. 4233 Lumber and other construction materials merchant wholesalers (2002 NAICS code 4233) Merchant wholesale distribution of products such as: Asphalt and concrete mixtures Mobile homes and prefabricated buildings Brick and stone Plywood Doors and windows and frames (all materials) Reconstituted wood fiber products Fencing Roofing, siding, and insulation materials Glass Wood and metal millwork Lumber NOTE - Merchant wholesaling of: Refractory brick is classified in ISI code 4238. Timber and timber products is classified in ISI code 4239. 4234 Professional and commercial equipment and supplies merchant wholesalers (2002 NAICS code 4234) Merchant wholesale distribution of products such as: Balances and scales Ophthalmic goods Commercial cooking and food service equipment Photocopy machines, microfilm machines, and other Computers, peripheral equipment, and software office equipment Electrical signs Photographic cameras, film, accessories, and equipment Mailing machines and equipment Shelving and store fixtures Medical, dental, and hospital equipment and Video cameras (except household-type) supplies NOTE - Merchant wholesaling of modems and other electronic communications equipment is classified in ISI code 4236. Selling, planning, and designing computer systems that integrate computer hardware, software, and communication technologies are classified in ISI code 5415. 4235 Metals and minerals (except petroleum) merchant wholesalers (2002 NAICS code 4235) In addition to merchant wholesaling of the products listed below, this industry includes metal service centers. These centers maintain inventory and may perform value added functions such as sawing, shearing, bending, leveling, cleaning or edging on a custom basis as part of sales transactions. Merchant wholesale distribution of minerals such as: Coal and coke Metal ores Nonmetallic minerals (except those used in construction, such as sand and gravel) Merchant wholesale distribution of primary metal products such as: p'^^- Non-insulated wire Castings Non-threaded pipe Ingots Plates Nails, spikes, and rods Sheets NOTE - Merchant wholesaling of: Nonmetallic minerals used in construction is classified in ISI code 4233. Gold, silver, and platinum is classified in ISI code 4239. Crude petroleum is classified in ISI code 4247. BE-799 (REV. 12/2002) Page 30 Part I -INDUSTRY CLASSIFICATIONS -Continued WHOLESALE TRADE -Continued MERCHANT WHOLESALERS, DURABLE GOODS -Continued 329 4236 Electrical and electronic goods merchant wholesalers (2002 NAICS code 4236) Merchant wholesale distribution of products such as: Electrical apparatus and equipment Electrical appliances Electrical light fixtures Household-type audio and video equipment, such as televisions and radios Household-type refrigerators and freezers Telecommunications equipment Unloaded computer boards Wiring supplies and electrical construction materials 4237 NOTE - Merchant wholesaling of computers, computer peripheral equipment, and loaded computer boards is classified in ISI code 4234. Hardware, and plumbing and heating equipment and supplies merchant wholesalers (2002 NAICS code 4237) Merchant wholesale distribution of products such as: Automotive air-conditioning equipment Central air-conditioning equipment Bolts, nuts, rivets, and screws Handtools Hardware Knives Plumbing and heating equipment and supplies Refrigeration equipment (except household-type) 4238 4239 NOTE - Merchant wholesaling of household room air-conditioners, refrigerators, and freezers, is classified in ISI code 4236. Machinery, equipment, and supplies merchant wholesalers (2002 NAICS code 4238) Merchant wholesale distribution of products such as: Construction, mining, and logging machinery and equipment Farm and garden machinery and equipment Industrial machinery and equipment Industrial supplies Service industry equipment and supplies Transportation equipment and supplies (except motor vehicles and marine pleasure craft), such as: Aircraft Motorized passenger golf carts Railroad cars Ships NOTE - Merchant wholesaling of: Motor vehicles and motor vehicle parts is classified in ISI code 4231. Janitorial chemicals is classified in ISI code 4246. Miscellaneous durable goods merchant wholesalers (2002 NAICS code 4239) Merchant wholesale distribution of products such as: Ammunition Flatware, including precious metal Jewelry, watches, and precious stones and metals Marine pleasure craft, equipment, and supplies Musical instruments NOTE - Merchant wholesaling of: Motorized passenger golf carts is classified in ISI code 4238. Athletic apparel is classified in ISI code 4243. Sorting recyclable materials is classified in ISI code 5620. Prerecorded music Recyclable materials Sporting and recreational goods and supplies, including specialty sport footwear Timber and timber products, except lumber Toy and hobby goods and supplies MERCHANT WHOLESALERS, NONDURABLE GOODS 4241 Paper and paper product merchant wholesalers (2002 NAICS code 4241) Merchant wholesale distribution of products such as: Greeting cards Industrial and personal service paper, such as: Bags and boxes Disposable plastics eating utensils Sanitary paper Pens and pencils Printing and writing paper Stationery and office supplies BE-799 (REV. 12/2002) Page 31 Part I -INDUSTRY CLASSIFICATIONS -Continued ^^^ WHOLESALE TRADE -Continued MERCHANT WHOLESALERS, NONDURABLE GOODS -Continued 4242 Drugs and druggists' sundries merchant wholesalers (2002 NAICS code 4242) Merchant wholesale distribution of products such as: Biological and medical products Botanical herbs and drugs Pharmaceuticals Vitamins 4243 Apparel, piece goods, and notions merchant wholesalers (2002 NAICS code 4243) Merchant wholesale distribution of products such as: Clothing and furnishings Footwear of leather, rubber, and other materials Piece goods and notions NOTE - Converters who buy fabric goods in the grey, have them finished on contract, and sell at wholesale are classified in ISI code 3130. 4244 Grocery and related product merchant wholesalers (2002 NAICS code 4244) Merchant wholesale distribution of products such as: Canned foods Confectioneries and snack foods Dairy products Fish and seafood Fresh fruit and vegetables Frozen foods (packaged) General line groceries Meat and meat products Pet food Poultry and poultry products Soft drinks NOTE - Pasteurizing and bottling milk are classified in ISI code 3115. Slaughtering and dressing of poultry are classified in ISI code 3116. Canning or freezing seafoods are classified in ISI code 3117. Roasting coffee is classified in ISI code 3119. Bottling soft drinks is classified in ISI code 3121. Merchant wholesaling of grains, field beans, and livestock is classified in ISI code 4245. Merchant wholesaling of beer, wine, and distilled alcoholic beverages is classified in ISI code 4248. 4245 Farm product raw material merchant wholesalers (2002 NAICS code 4245) In addition to merchant wholesaling of the products listed below, also includes businesses engaged in operating country or terminal grain elevators primarily for the purpose of merchant wholesaling. Merchant wholesale distribution of products such as: Grains and field beans Hides and pelts Leaf tobacco Livestock Raw cotton NOTE - Merchant wholesaling of field and garden seeds is classified in ISI code 4249. 4246 Chemical and allied products merchant wholesalers (2002 NAICS code 4246) Merchant wholesale distribution of products such as: Acids Dyestuffs Explosives Industrial chemicals and salts Plastics materials and resins Plastics films, sheets, rods, and tubes NOTE - Merchant wholesaling of: Ammunition and fireworks is classified in ISI code 4239. Biological, medical, and pharmaceutical products is classified in ISI code 4242. Agricultural chemicals and fertilizers is classified in ISI code 4249. Paints and varnishes is classified in ISI code 4249. BE-799 (REV. 12/2002) Page 32 Part I -INDUSTRY CLASSIFICATIONS -Continued 331 WHOLESALE TRADE -Continued MERCHANT WHOLESALERS, NONDURABLE GOODS -Continued 4247 Petroleum and petroleum products merchant wholesalers (2002 NAICS code 4247) Merchant wholesale distribution of products such as: Crude petroleum and petroleum products, such as fuel oil, gasoline and lubricating oil Liquid petroleum gas 4248 Beer, wine, and distilled alcoholic beverage merchant wholesalers (2002 NAICS code 4248) Merchant wholesale distribution of products such as: Ale D Neutral spirits and ethyl alcohol used in blended wines and Distilled alcoholic beverages distilled liquors Fermented malt beverages wine 4249 Miscellaneous nondurable goods merchant wholesalers (2002 NAICS code 4249) Merchant wholesale distribution of products such as: Agricultural chemicals, pesticides, and fertilizers Pet supplies Books, periodicals, and newspapers Textile bags Farm supplies Tobacco and tobacco products Flowers and nursery stock Yarns Paints, varnishes, and wallpapers NOTE - Merchant wholesaling of pet food is classified in ISI code 4244. ELECTRONIC MARKETS AND AGENTS AND BROKERS 4251 Wholesale electronic markets and agents and brokers (2002 NAICS code 4251) Business-to-business electronic markets bringing together buyers and sellers of goods using the Internet or other electronic means and generally receiving a commission or fee for the service. Agents and brokers that arrange for the sale of goods owned by others. Agents and brokers do not take title to the goods being sold but rather receive a fee or commission for their service. NOTE - Businesses engaged in bringing together buyers and sellers of goods using the Internet in a business-to-consumer or consumer-to-consumer environment are classified in ISI code 4540. RETAIL TRADE The retail trade sector (ISI codes 4410-4540) comprises businesses selling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Retailers sell merchandise to the general public. Store retailers operate permanent point-of-sale locations. Non-store retailers reach customers through methods such as the broadcasting and publishing of direct response advertising, the publishing of traditional and electronic catalogues, and distribution through vending machines. Businesses may be engaged in providing after-sales services such as repair and installation. Businesses that both manufacture and sell their products to the general public, such as retail bakeries, are not classified in retail trade, but rather in manufacturing. Businesses that both retail goods and repair and maintain those goods should provide a breakdown of revenues for both activities. If no breakdown is available, classify the revenues in retail trade according to the type of good that is retailed. 4410 Motor vehicle and parts dealers (2002 NAICS code 441) Examples of businesses in this industry are: Automobile dealers Motorcycle dealers Automotive parts and accessories dealers Recreational vehicle dealers Boat dealers Tire dealers Light truck dealers Utility trailer dealers NOTE - Selling of medium and heavy duty trucks is classified in ISI code 4231. Selling and installing automotive parts other than tires is classified in ISI code 8110. 4420 Furniture and home furnishings stores (2002 NAICS code 442) Examples of businesses in this industry are: Floor coverings stores Office furniture (except in combination with office Household furniture stores equipment and supplies) stores Kitchenware stores Outdoor furniture stores Window treatment stores NOTE- Retailing: Custom made curtains and drapes made on premises is classified in ISI code 3140. Used furniture is classified in ISI code 4530. BE-799 (REV. 12/2002) Page 33 Part I -4NDUSTRY CLASSIFICATIONS -Continued 332 RETAIL TRADE -Continued 4431 Electronics and appliance stores (2002 NAICScode 4431) Examples of businesses in this industry are: Camera and photographic supplies stores Computers, peripherals, and prepackaged software stores Household appliance stores IMOTE- Retailing: Automotive electronic sound systems is classified in ISI code 4410. New sewing machines in combination with selling new sewing supplies, fabrics, patterns, yarns and other needlework accessories is classified in ISI code 4510. Computers, peripherals, and prepackaged software in combination with retailing office equipment, furniture and supplies is classified in ISI code 4530. 4440 Building material and garden equipment and supplies dealers (2002 NAICS code 444) Examples of businesses in this industry are: Building materials and supplies dealers Nursery and garden centers Hardware stores Outdoor power equipment stores Home centers Paint and wallpaper stores Lawn and garden equipment and supplies stores 4450 Food and beverage stores (2002 NAICS code 445) Examples of businesses in this industry are: Convenience stores Meat, fish, fruit and vegetable, and other specialty food markets Grocery stores Supermarkets Liquor stores NOTE -Retailing: Candy and chocolate made on the premises not for immediate consumption is classified in ISI code 3113. A general line of baked goods made on the premises not for immediate consumption is classified in ISI code 3118. Convenience stores that sell gasoline are classified in ISI code 4471. 4461 Health and personal care stores (2002 NAICScode 4461) Examples of businesses in this industry are: Cosmetics and beauty supplies stores Optical goods stores Health and personal care stores selling Pharmacies and drug stores such items as food supplements, hearing aids, and convalescent supplies IMOTE - Grinding, but not retailing, optical lenses is classified in ISI code 3391. 4471 Gasoline stations (2002 NAICScode 4471) Retailing motor fuels and automotive oils. Includes businesses that sell motor fuels in combination with convenience store items and/or repair services. NOTE - Businesses engaged solely in repairing motor vehicles are classified in ISI code 8110. 4480 Clothing and clothing accessories stores (2002 NAICS code 448) Examples of businesses in this industry are: Clothing stores Jewelry stores Luggage and leather goods stores Shoe stores NOTE - Cutting and setting gemstones is classified in ISI code 3399. Retailing new specialty sports footwear (e.g., bowling shoes, golf shoes, spiked shoes) is classified in ISI code 4510. BE-799 (REV. 12/2002 Page 34 Part I -INDUSTRY CLASSIFICATIONS -Continued 333 RETAIL TRADE -Continued 4510 Sporting goods, hobby, book, and music stores (2002 NAICScode 451) Examples of businesses in this industry are: Bool< stores Hobby, games, and toy stores Prerecorded music and musical instruments stores Sporting goods stores NOTE - Retailing new computer game software is classified in IS! code 4430. Retailing general-purpose athletic shoes is classified in IS! code 4480. 4520 General merchandise stores (2002 NAICS code 452) Retailing a large variety of goods with no one merchandise line predominating. Examples of businesses in this industry are: Department stores Discount department stores Warehouse clubs and supercenters 4530 Miscellaneous store retailers (2002 NAICS code 453) Examples of businesses in this industry are: Art dealers Pet stores Florists Stationery and gift stores Manufactured mobile homes retailers Used merchandise stores Office equipment and supplies retailers NOTE - Retailing used automobiles is classified in ISI code 4410. Pawnshops are classified in ISI code 5224. 4540 Nonstore retailers (2002 NAICS code 454) Examples of businesses in this industry are: Direct selling businesses, such as heating oil dealers Mail order houses Electronic auction Telemarketing sales Electronic shopping houses Vending machine operators NOTE - Facilitating business-to-business sales of new and used merchandise on an auction basis using the Internet is classified in code 4251. Providing telemarketing services for others is classified in ISI code 5614. Supplying and servicing coin-operated amusement and gambling devices in places of business operated by others is classified in ISI code 7130. TRANSPORTATION AND WAREHOUSING The transportation and warehousing sector (ISI codes 4810-4939) comprises businesses providing transportation of passengers and cargo, scenic and sightseeing transportation, support activities related to transportation and warehousing and storage for goods. Businesses in transportation use transportation equipment or transportation related facilities as a productive asset. 4810 Air transportation (2002 NAICScode 481) Businesses engaged in providing scheduled and nonscheduled air transportation of passengers and/or cargo using aircraft such as airplanes and helicopters. Launch services NOTE - Scenic and sightseeing air transportation is classified in ISI code 4870. Air courier services are classified in ISI code 4920. 4821 Rail transportation (2002 NAICScode 4821) Businesses engaged in providing line-haul or short-line rail transportation of passengers and/or cargo using railroad rolling stock. The railroads primarily operate on networks, with physical facilities, labor force, and equipment spread over an extensive geographic area. NOTE -Commuter rail and urban rapid transit are classified in ISI code 4850. Scenic and sightseeing rail transportation is classified in ISI code 4870. Operating switching and terminal facilities as a separate business is classified in ISI code 4880. BE-799 (REV. 12/2002) Page 35 Part I -INDUSTRY CLASSIFICATIONS -Continued 334 TRANSPORTATION AND WAREHOUSING -Continued 4833 Petroleum tanker operations (Part of 2002 NAICS code 483) Businesses engaged in operating water craft on the deep seas or on foreign or domestic coastal and inland waterways for the transportation of crude petroleum, petroleum products, or liquid natural gas. Businesses in this industry can either own or lease the water craft. The services can be rendered for the firm's own account, the account of affiliated persons, or the account of unaffiliated persons. 4839 Other water transportation (Part of 2002 NAICS code 483) Businesses engaged in providing water transportation of passengers and cargo (except petroleum and related products, which is in ISI code 4833) using water craft such as ships, barges, and boats either on the deep sea or coastal and inland waterways. NOTE - Scenic and sightseeing water transportation is classified in ISI code 4870. Operating floating casinos is classified in ISI code 7130. 4840 Truck transportation (2002 NAICS code 484) Businesses engaged in providing local and long-distance over-the-road transportation of cargo using motor vehicles, such as trucks and tractor trailers. This industry includes specialized trucking, such as moving of household and office goods. 4850 Transit and ground passenger transportation (2002 NAICS code 485) Businesses engaged in providing urban transit systems; commuter rail; chartered bus, school bus and interurban bus transportation; and taxi and limousine service. NOTE - Scenic and sightseeing ground transportation is classified in ISI code 4870. Ambulance services are classified in ISI code 6210. 4863 Pipeline transportation of crude oil, refined petroleum products, and natural gas (2002 NAICS codes 4861, 4862, and 48691) Businesses engaged in the use of distribution and transmission pipelines to transport crude oil, refined petroleum products, and natural gas. The pipeline transportation of natural gas also includes storage of natural gas. NOTE - Pipeline transportation of natural gas to the end consumer is classified in ISI code 2212. 4868 Other pipeline transportation (2002 NAICS code 48699) Businesses engaged in the use of distribution and transmission pipelines to transport commodities such as coal and slurry. NOTE - Pipeline transportation of water by utilities is classified in ISI code 2213. 4870 Scenic and sightseeing transportation (2002 NAICS code 487) Businesses engaged in the use of transportation equipment to provide recreation and entertainment. The activity is local in nature, usually involving a same-day return to the point of departure. Examples of businesses in this industry are: Charter fishing boats Hot air balloon rides Sightseeing buses and trolleys Steam train excursions 4880 Support activities for transportation (2002 NAICS code 488) Businesses engaged in providing services to transportation carriers or to the general public, which support a single mode or several modes of transportation. Examples of activities in this industry are: Aircraft and rail transportation equipment Freight forwarding maintenance and repair Motor vehicle towing Airport operation Port and harbor operation Cargo handling Rail terminal operation NOTE - Businesses engaged in providing complete overhauls or rebuilding of transportation equipment are classified in transportation equipment manufacturing according to the type of equipment. BE-799 (REV. 12/2002) Page 36 Part I -INDUSTRY CLASSIFICATIONS -Continued 335 TRANSPORTATION AND WAREHOUSING -Continued 4920 Couriers and messengers (2002 NAICS code 492) Businesses engaged in providing air, surface, or combined courier delivery services of parcels, letters, and documents. Deliveries of meals and groceries on a fee basis are also included. 4932 Petroleum storage for hire (Part of 2002 NAICS code 49319) Businesses engaged in operating bulk petroleum storage facilities and terminals for hire. 4939 Other warehousing and storage (2002 NAICS codes 4931 1, 49312, 49313, and part of 49319) Businesses engaged in operating warehousing and storage facilities for general merchandise, refrigerated goods, farm products, and other warehouse products, except petroleum. NOTE - Renting space for self storage of goods (mini-warehouses) is classified in ISI code 5310. Storing hazardous materials for treatment and disposal is classified in IS! code 5620. INFORMATION The Information sector (ISI codes 5111-6191) comprises businesses engaged in producing and distributing information and cultural products; providing the means to transmit or distribute these products as well as data or communications; and processing data. (Cultural products are those that directly express attitudes, opinions, ideas, values, and artistic creativity; provide entertainment; or offer information and analysis concerning the past and present.) The unique characteristics of information and cultural products, and of the processes involved in their production and distribution, distinguish businesses in the Information sector from those in other sectors. Some of these characteristics are: 1. Unlike traditional goods, an "information or cultural product" such as an on-line newspaper or a television program does not necessarily have tangible qualities, nor is it necessarily associated with a particular form. 2. Unlike traditional services, the delivery of informational and cultural products does not require direct contact between the supplier and the consumer. 3. The intangible property aspect of information and cultural products makes the processes involved in their production and distribution different from goods and services. Only those possessing the rights to these works are authorized to reproduce, alter, improve, and distribute them. 4. Distributors of information and cultural products often add value to the products they distribute. For instance, broadcasters may add advertising to the original product. This capacity means that unlike other distributors of goods and services, some information distributors may derive revenue not from the sale of the distributed product to the final consumer, but from those who pay for adding information to the original product. 5111 Newspaper, periodical, book, and directory publishers (2002 NAICS code 5111) Businesses engaged in publishing newspapers, magazines, other periodicals, books, directories, and mailing lists, and other works, such as calendars, greeting cards, maps. These works are characterized by the intellectual creativity required in their development and are usually protected by copyright. Businesses may create the works in-house, contract for, purchase, or compile works that were originally created by others. These works may be published in one or more formats, such as print and/or electronic form, including proprietary electronic networks. Businesses may print, reproduce, or offer direct access to the works themselves or may arrange with others to carry out such functions. NOTE - Printing newspapers, periodicals, books, and greeting cards but not publishing is classified in ISI code 3231. Book clubs primarily engaged in direct sales activities without publishing are classified in ISI code 4540. Music publishers are classified in ISI code 5122. Publishing periodicals, books, greeting cards, or developing compilations of creative works or facts exclusively on the Internet is classified in ISI code 5161. Operating Web search portals is classified in ISI code 5181. Supplying the news media with information such as news, reports, and pictures is classified in ISI code 5191. 5112 Software publishers (2002 NAICS code 5112) Businesses engaged in computer software publishing or publishing and reproduction. Such businesses carry out operations necessary for producing and distributing computer software such as designing, providing documentation, assisting in installation, and providing support services to software purchasers. These businesses may design and publish or only publish. NOTE - Mass duplication of computer software is classified in ISI code 3346. Providing access to software for clients from a central host site is classified in ISI code 5182. Designing software to meet the needs of specific users is classified in ISI code 5415. BE-799 (REV. 12/2002) Page 37 Part I -INDUSTRY CLASSIFICATIONS -Continued INFORMATION -Continued 5121 Motion picture and video industries (2002 NAICScode 5121) Businesses engaged in the production and/or distribution of motion pictures, videos, television programs, or commercials; in the exhibition of motion pictures; or in the provision of post-production and related services, such as editing, closed captioning, animation, and special effects. NOTE - Mass duplication and packaging of video tapes is classified in ISI code 3346. Providing audio services for film, television, and video productions is classified in ISI code 5122. 5122 Sound recording industries (2002 NAICS code 5122) Businesses engaged in producing and distributing musical recordings, in publishing music, or in providing sound recording and related services. Includes integrated record production and distribution. NOTE - Mass duplication of recorded products is classified in ISI code 3346. 5151 Radio and television broadcasting (2002 NAICS code 5151) Businesses engaged in operating broadcasting studios and facilities for over-the-air or satellite delivery of radio and television programs. These businesses are engaged in the production or purchase of programs and generate revenues from the sale of airtime to advertisers, from donations and subsidies, or from the sale of programs. NOTE - Producing and broadcasting television programs for cable and satellite television systems is classified in ISI code in 5152. Broadcasting exclusively on the Internet is classified in ISI code 5161. Furnishing cable and other pay television services is classified in ISI code 5175. 5152 Cable and other subscription programming (2002 NAICScode 5152) Businesses engaged in operating studios and facilities for the broadcasting of programs on a subscription or fee basis. The programming is usually narrowcast in nature (e.g., limited format, such as news, sports, or youth-oriented). These businesses produce programming in their own facilities or acquire programming from external sources. The programming material is usually delivered to a third party, such as cable systems or direct-to-home satellite systems, for transmissions to viewers. NOTE - Producing taped television program material is classified in ISI code 5121. Furnishing cable and other pay television services is classified in ISI code 5175. 5161 Internet publishing and broadcasting (2002 NAICScode 5161) Businesses engaged in publishing and/or broadcasting content on the Internet exclusively. They do not provide traditional (non-Internet) versions of the content they publish or broadcast. Examples of businesses in this industry are: Internet book, news, and periodical publishers Internet entertainment and game sites Internet radio stations Internet video broadcast sites NOTE - Providing both Internet publishing and other print or electronic editions is classified in ISI code 5111 or 51 12 based on the materials produced. Providing Internet access (Internet service provider) and/or operating Web search portals is classified in ISI code in 5181. Providing streaming services on content owned by others is classified in ISI code 5182. Operating stock brokerages, travel reservation services, purchasing services, and similar activities using the Internet rather than traditional methods are classified with the more traditional businesses that provide these services. 5171 Wired telecommunications carriers (2002 NAICS code 5171) Businesses engaged in operating, maintaining or providing access to facilities for the transmission of voice, data, text, sound, and video using wired telecommunications networks. Transmission facilities may be based on a single technology or a combination of technologies. NOTE - Providing coin-operated pay telephones is classified in ISI code 8120. BE-799 (REV. 12/2002) Page 38 Part I -INDUSTRY CLASSIFICATIONS -Continued 337 INFORMATION -Continued 5172 Wireless telecommunications carriers (except satellite) (2002 NAICS code 5172) Businesses engaged in operating, maintaining or providing access to facilities for the transmission of voice, data, text, sound, and video using wireless telecommunications networks. Transmission facilities may be based on a single technology or a combination of technologies. Examples of businesses in this industry are: Cellular telephone service Paging networks NOTE - Businesses engaged in providing telephone answering services using pagers are classified in IS! code 5614. 5173 Telecommunications resellers (2002 NAICS code 5173) Businesses engaged in purchasing access and network capacity from owners and operators of the networks and reselling wired and wireless telecommunications services to businesses and households. These businesses do not operate and maintain telecommunications switching and transmission facilities. NOTE - Businesses engaged in reselling satellite telecommunications services are classified in ISI code 5174. 5174 Satellite telecommunications (2002 NAICS code 5174) Businesses engaged in providing point-to-point telecommunications services to other businesses in the telecommunications and broadcasting industries by forwarding and receiving communications signals via a system of satellites. Also included are businesses that resell satellite communications. NOTE - Businesses engaged in providing direct-to-home satellite television systems to individual households or consumers are classified in ISI code 5175. 5175 Cable and other program distribution (2002 NAICS code 5175) Businesses engaged as third-party distribution systems for broadcast programming. These businesses deliver programming received from cable networks, local television stations, and or radio networks via cable or direct-to-home satellite systems on a subscription or fee basis. These businesses do not generally originate programming material. NOTE - Businesses engaged in producing and broadcasting television programs for cable and satellite television systems are classified in ISI code 5152. 5179 Other telecommunications (2002 NAICS code 5179) Businesses engaged in (1) providing specialized telecommunication applications, such as satellite tracking, communications telemetry, and radar stations operations; or (2) providing satellite terminal stations and associated facilities operationally connected with one or more terrestrial communications systems and capable of transmitting telecommunications to or receiving telecommunications from satellite systems. NOTE - Businesses engaged in providing satellite telecommunications services are classified in ISI code 5174. 5181 Internet service providers and web search portals (2002 NAICS code 5181) Businesses in this industry provide clients access to the Internet or operate Web sites that use a search engine to provide Internet search services. These businesses also provide related services, such as Web hosting and Web page design. Web search portals often provide additional Internet services, such as email, connections to other Web sites, auctions, news, and serve as a home base for Internet users. NOTE - Businesses engaged in- Publishing or broadcasting exclusively on the Internet are classified in ISI code 5161. Web hosting are classified in ISI code 5182. Designing Web sites for others on a fee basis are classified in ISI code 5415. Operating stock brokerages, travel reservation services, purchasing services, and similar activities using the Internet rather than traditional methods are classified with the more traditional businesses that provide these services. BE-799 (REV. 12/2002) Page 39 Part I -INDUSTRY CLASSIFICATIONS -Continued 338 INFORMATION -Continued c-toy Data processing, hosting, and related services (2002 NAICS code 5182) Businesses engaged in providing infrastructure for hosting or data processing services. These businesses may provide specialized hosting activities, such as Web hosting, streaming services or application hosting, provide application service provisioning, or may provide general time-share mainframe facilities to clients. Data processing businesses provide complete processing and specialized reports from data supplied by clients or provide automated data processing and data entry services. NOTE - Providing Internet access services in combination with Web hosting is classified in ISI code 5181. Processing financial transactions, such as credit card transactions, is classified in ISI code 5223. Providing payroll processing services is classified in ISI code 5412. Providing on-site management and operation of a client's data-processing facility is classified in ISI code 5415. Providing text processing and related document preparation services is classified in ISI code 5614. 5191 Other information services (2002 NAICS code 5191) Businesses engaged in supplying information, storing information, providing access to information, and searching and retrieving information. Example of businesses in this industry are: Archives News syndicates Libraries Telephone-based information services FINANCE AND INSURANCE The finance and insurance sector (ISI codes 5221-6252) comprises businesses engaged in financial transactions (transactions involving the creation, liquidation, or change in ownership of financial assets) and/or in facilitating financial transactions. Three principal types of activities are included: 1. Raising funds by taking deposits and/or issuing securities, and in the process, incurring liabilities. 2. Pooling of risk by underwriting insurance and annuities. 3. Providing specialized services facilitating, or supporting, financial intermediation, insurance, or employee benefit programs. 5221 Depository credit intermediation (Banking) (2002 NAICS codes 5221 and 551111) Businesses engaged in accepting deposits and in lending funds from these deposits. Examples of businesses in this industry are: Bank holding companies Commercial banks Credit unions Savings institutions 5223 Activities related to credit intermediation (2002 NAICS code 5223) Businesses engaged in facilitating credit intermediation by performing activities, such as arranging loans by bringing borrowers and lenders together, and clearing checks and credit card transactions. Examples of services provided by businesses in this industry are: Check cashing Money order and travelers check issuing Credit card processing Mortgage and other loan arranging Debit card issuing Reserve and clearing house activities Electronic funds transfer Servicing loans originated by others Financial transactions processing 5224 Non-depository credit intermediation (Part of 2002 NAICS code 5222) Businesses engaged in extending credit or lending funds raised by credit market borrowing, such as issuing commercial paper or other debt instruments. Examples of services provided by businesses in this industry are: Consumer lending Real estate credit Credit card issuing Sales financing Mortgage companies Trade financing NOTE - U.S. branches and agencies of foreign banks and foreign branches and agencies of U.S. banks engaged in financing are classified in ISI code 5229. Debit card issuing, servicing loans originated by others, and loan arranging are classified in ISI code 5223. BE-799 (REV, 12/2002) Page 40 Part I -INDUSTRY CLASSIFICATIONS -Continued 339 FINANCE AND INSURANCE -Continued 5229 Nondepository branches and agencies (Part of 2002 NAICS code 5222) Foreign branches and agencies of U.S. banks that do not accept deposits abroad. U.S. branches and agencies of foreign banl