Worldwide Activities of U.S. Multinational Enterprises

Revised 2015 Statistics

This publication presents revised statistics on the worldwide activities of U.S. multinational enterprises (MNEs) for the fiscal year 2015. The worldwide operations of a U.S. MNE can be divided between its domestic operations, represented by the U.S. parent company, and its foreign operations, represented by the U.S. parent company's foreign affiliates—the statistics are presented for each of these components.¹ These activities of multinational enterprises (AMNE) statistics, also referred to as outward AMNE statistics, represent one part of the AMNE statistics produced by the Bureau of Economic Analysis (BEA). BEA also produces statistics that cover the activities of U.S. affiliates of foreign MNEs, also referred to as inward AMNE statistics.

The statistics in this publication provide a comprehensive look at the activities—that is, the finances and operations—of U.S. MNEs. Items covered by these statistics include balance sheet details such as assets and liabilities, employment and employee compensation, sales, capital expenditures, trade in goods, research and development (R&D) expenditures, and value added. Statistics from BEA provide comprehensive and reliable information needed to monitor, to assess the impact of, and to guide U.S. policy on U.S. direct investment abroad. They can help users evaluate the consequences of the actions of U.S. MNEs for the economies of the United States and foreign host countries. These statistics provide a detailed picture of the levels and growth of U.S. MNEs' activities as well as their distribution by industry and by country.

Data Collection and Universe Estimation

The statistics in this publication cover the universe of U.S. parent companies and their foreign affiliates. They are derived by combining the sample data that were reported in the 2015 Annual Survey of U.S. Direct Investment Abroad with imputations for parents and affiliates not in the sample. The imputations for nonsample parents and affiliates were derived by extrapolating forward their data from BEA's 2014 Benchmark Survey of U.S. Direct Investment Abroad.

Data on U.S. parents were reported on the BE–11A survey form. The amount of data collected depended on the size of the parent company. A complete form was required for U.S. parents with assets, sales, or net income (or loss) greater than $300 million. To minimize the reporting burden on survey respondents, smaller parents were required to report only certain key items. For these parents, BEA imputed the other items that appear on the BE–11A survey form so that the results are presented in the same detail for all U.S. parents.

Data on foreign affiliates of U.S. parents were reported using one of three forms:

• A full BE–11B form was required for majority-owned foreign affiliates (MOFAs) with assets, sales, or net income (or loss) greater than $300 million. To minimize the reporting burden on survey respondents, only a partial BE–11B form was required for MOFAs with assets, sales, or net income (or loss) greater than $60 million but none of the items greater than $300 million. For these affiliates, BEA imputed the items that are reported only for larger affiliates so that the results are presented in the same detail for all MOFAs.
• A BE–11C form, which is less detailed than the full or partial BE–11B form, was required for minority-owned foreign affiliates that had total assets, sales, or net income (or loss) greater than $60 million.² Estimates of items that appear on the B form, but not the C form, are not prepared for minority-owned affiliates. Therefore, the results for all affiliates (majority-owned affiliates and minority-owned affiliates) cover only the items that are on the less detailed C form.
• A BE–11D form, which is less detailed than the BE–11B or BE–11C forms, was required for foreign affiliates that were newly acquired or established in fiscal year (FY) 2015 and that had assets, sales, or net income (or loss) greater than $25 million but none of the items greater than $60 million. For new MOFAs reported on the D form, BEA imputed items that appear on the B form but not on the D form, so that the results are presented in the same detail for all MOFAs. For new minority-owned affiliates reported on the D form, BEA imputed items that appear on the C form but not on the D form, so that the results are presented in the same detail for all minority-owned foreign affiliates.

Affiliates that did not meet any of the aforementioned size thresholds were exempt from reporting on the 2015 BE–11 survey. BEA imputed the data for these exempted affiliates and for delinquent nonexempt affiliates by extrapolating data from earlier years, which, in some cases, was from the 2014 benchmark survey (or census) of U.S. direct investment abroad, on the basis of the year-to-year movement in the data reported for other affiliates.

Comparability With the 2014 Benchmark Survey Data

The concepts and definitions underlying the 2015 statistics are the same as those used for the statistics from the 2014 benchmark survey. They are described in Worldwide Activities of U.S. Multinational Enterprises: Revised Results From the 2014 Benchmark Survey, and available on BEA's website.

Consistent with the statistics from the 2014 benchmark survey, the 2015 statistics by industry are based on industry classifications derived from the 2012 revision to the North American Industry Classification System (NAICS). For most industries, the 2012 classifications are identical to those in the 2007 NAICS-based industry classification system used in the benchmark and annual surveys for 2009–2013.

Items included in the 2015 statistics are similar to the items in the 2014 benchmark statistics. However, for some items, the 2015 statistics that are shown separately in the benchmark statistics are combined with other items. Also, the 2015 statistics for some items are unavailable because data for these items were only collected in the benchmark survey, not in the annual survey. Examples of statistics available only in the benchmark survey year include R&D employees of U.S. parents and foreign affiliates, U.S. exports of goods shipped to foreign affiliates by intended use, and additional detail on the destination of sales by foreign affiliates.

Comparability of U.S. Parent Statistics With All U.S. Statistics

Statistics on production and productive capacity of U.S. parents can be compared with statistics on all U.S. private businesses to gauge the share of U.S. economic activity accounted for by U.S. parents. These data items include employment, employee compensation, value added, capital expenditures, and R&D expenditures.

For employment, comparable statistics at the aggregate level for all U.S. private industries are available from BEA's national income and product accounts (NIPAs) in line 3 (private industries) of "Table 6.4D Full-Time and Part-Time Employees by Industry." However, these statistics are not fully comparable at the level of individual industries because the underlying source data are collected at different levels. NIPA employment data are collected on an industry of establishment basis, while the AMNE data are collected on an industry of enterprise basis. The industrial classification of U.S. parent employment is based on the principal product—including services—sold by all of their establishments combined. Because the establishments of large enterprises are usually classified in several industries, the distributions of data by industry of establishment can differ significantly from those by industry of enterprise. An enterprise may consist of several establishments in a variety of industries. In the NIPAs, each establishment's employment would contribute to its industry's employment total; however, in the AMNE statistics, every one of an enterprise's establishments would contribute to the employment total for the same industry.

For employee compensation, comparable statistics at the aggregate level for all U.S. private industries are available from BEA's NIPAs in line 3 (private industries) of "Table 6.3D Wages and Salaries by Industry." As with statistics for employment, statistics at the industry level on employee compensation for all U.S. private industries in table 6.3D are by industry of establishment and are not entirely comparable with the statistics for U.S. parents.

For value added, comparable statistics at the aggregate level for all U.S. private industries are available from BEA's gross domestic product by industry accounts in line 2 (private industries) of the Value Added by Industry table. As with statistics at the industry level for employment and employee compensation, statistics on value added for all U.S. private industries are by industry of establishment and are not entirely comparable with the statistics for U.S. parents.

Statistics on capital expenditures by U.S. parents are comparable with the statistics for all U.S. companies from the U.S. Census Bureau's Annual Capital Expenditures Survey (ACES), "Table 4b. Capital Expenditures for Structures and Equipment for Companies with Employees by Industry: Revised 2015." The ACES statistics are by industry of the capital expenditures, which may differ from the industry of the enterprise, so these statistics are not entirely comparable at the industry level with the statistics on U.S. parents.

Statistics on R&D expenditures by U.S. parents are comparable to the statistics on funds spent for business R&D performed in the United States from a research and development and innovation survey available from the National Science Foundation (NSF). Comparisons by industry are imprecise due to differences in the industry classification. The industry classification of U.S. parents in the AMNE statistics is based on their primary industry of sales, whereas the industry classification of R&D-performing U.S. companies in the NSF statistics is based on the company's dominant industry code for domestic R&D performance.

Comparability of Foreign Affiliate Statistics
With Foreign Host Economy Statistics

Value added statistics on MOFAs by country can be compared with statistics on gross domestic product in private industries for their respective foreign host countries. GDP by industry statistics for foreign countries are available from the United Nations.³

Comparability of U.S. MNE Statistics on Trade
in Goods With Total U.S. Trade in Goods

Trade in goods statistics for U.S. MNEs can be compared with total U.S. trade in goods to gauge the share of total U.S. trade in goods accounted for by U.S. MNEs. As global firms, MNEs export and import both final and intermediate goods.

The concepts and definitions underlying the data collected on trade in goods on the BE–11 survey forms are nearly identical to those used for the data on total U.S. trade in goods compiled by the Census Bureau. However, there are some measurement differences between the MNE trade data and the total U.S. trade in goods. One difference is in how trade in goods is reported. The trade data from the on the BE–11 survey reflect responses based on company records, while the Census Bureau data are compiled from export and import documents filed by shippers with the U.S. Bureau of Customs and Border Protection on individual transactions.⁴ The timing, valuation, origin or destination, shipper, and product involved in a given transaction may be recorded differently in company records than on these export and import documents.

Trade between U.S. parents and their foreign affiliates is referred to as intra-MNE trade. Trade between U.S. parent companies and foreigners other than their own foreign affiliates, and trade between foreign affiliates and U.S. residents other than their own parents, are referred to as MNE trade with others. U.S. MNE-associated trade in goods consists of all U.S. exports and U.S. imports of goods that involve U.S. parents or their foreign affiliates and is the sum of intra-MNE trade and MNE trade with others.

Overlap of Outward and Inward AMNE Statistics

Along with outward AMNE statistics, BEA also publishes inward AMNE statistics—that is, statistics on the activities of U.S. affiliates of foreign MNEs—based on BEA surveys of foreign direct investment in the United States. These two sets of statistics partly overlap because some U.S. companies are both foreign-owned and own foreign affiliates; these U.S. companies are included in both the inward and outward statistics. Like the outward AMNE statistics, the inward AMNE statistics are published annually and are based on benchmark surveys that are conducted once every 5 years and on annual surveys, which are conducted in the intervening years. The most recent benchmark outward AMNE statistics were for 2014 and the most recent benchmark inward AMNE statistics were for 2012.⁵

Data Availability

Information on the outward AMNE statistics is available on BEA's website. Detailed outward AMNE statistics for 1983–2016 are available in interactive tables.

Staff Contacts

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

• The statistics are on a fiscal year basis. An affiliate's fiscal year is defined as the financial reporting year that ended in that calendar year. Unless otherwise specified, all balances are as of the close of fiscal year 2015.
• Detail may not add to totals because of rounding.
• An asterisk "(*)" indicates a nonzero value that rounds to zero.
• A "(D)" indicates that the data have been suppressed to avoid the disclosure of the data of individual companies. For employment cells that have been suppressed, a letter in the data cell indicates an employment size range that is listed below the tables.
• A "U.S. parent" is the person, resident in the United States, that owns or controls 10 percent or more of the voting securities of an incorporated foreign business enterprise or an equivalent interest in an unincorporated foreign business enterprise. "Person" is broadly defined to include any individual, branch, partnership, associated group, association, estate, trust, corporation, or other organization (whether or not organized under the laws of any state), or any government entity. The U.S. parent is the fully consolidated U.S. domestic business enterprise that consists of (1) the U.S. business enterprise whose voting securities are not owned more than 50 percent by another U.S. business enterprise and (2) proceeding down each ownership chain from that U.S. business enterprise, any U.S. business enterprise (including Foreign Sales Corporations in the United States) whose voting securities are more than 50 percent owned by the U.S. business enterprise above it. A U.S. parent comprises the domestic (U.S.) operations of a U.S. multinational enterprise.
• A "foreign affiliate" is a foreign business enterprise in which there is U.S. direct investment, that is, in which a U.S. person directly or indirectly owns or controls 10 percent of the voting securities or the equivalent. Foreign affiliates comprise the foreign operations of a U.S. multinational enterprise over which the U.S. parent is presumed to have a degree of managerial influence.
• A "majority-owned foreign affiliate" is a foreign affiliate in which the combined direct and indirect ownership interest of all U.S. parents exceeds 50 percent.
• The designation "by country" in a table title indicates that data are disaggregated by country of foreign affiliate.
• Some tables present statistics for a group of countries or industries rather than for each country or each industry. These country or industry groups are often denoted "Other" in the tables ("Other industries" is a special case). Two other terms are also used: "Miscellaneous manufacturing" and "Miscellaneous services." For example, most world regions in the tables have a version of "Other." For the constituents of the "Other" country groups, see table I.A 1 or II.A 1. For the constituents of the "Other" industry groups (as well as those of "Other industries," "Miscellaneous manufacturing," and "Miscellaneous services") see table I.A 2 or II.A 2. See also "BEA's Guide to Industry Classifications for International Surveys, 2012."
• The European Union (28 countries) comprises Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.
• OPEC is the Organization of Petroleum Exporting Countries. In 2015, its members were Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. The "United Kingdom Islands, Caribbean" consists of the British Virgin Islands, the Cayman Islands, Montserrat, and the Turks and Caicos Islands.
• All footnotes follow the last table.

Part I. All Affiliates and All Parents

Table I.A 1

1. The number of affiliates includes only the affiliates that meet the stated threshold; all other data are for all affiliates.

Table I.A 2

1. The number of affiliates or parents includes only the entities that meet the stated threshold; all other data are for all affiliates or for all parents.

Table I.G 7

1. Includes countries with affiliate employment of at least 500,000 and cities with a population of at least 500,000 that have at least 20 affiliates.

Table I.O 1

1. Goods supplied are generally defined as sales of economic outputs that are tangible. For wholesale and retail trade, goods supplied includes only the value of goods resold; it consists of reported sales of goods less BEA's estimate of the value of the distributive services provided by selling, or arranging for the sale of, goods (this estimate is added to reported sales of services to calculate services supplied). For industries other than wholesale and retail trade, goods supplied consists of reported sales of goods.

2. Services supplied are generally defined as sales of economic outputs that are intangible. For insurance, services supplied consists of premiums remaining after provision for BEA's estimates of expected or "normal" losses and a measure of premium supplements, which represent income earned on funds that insurers hold on policyholders' behalf. For banking, services supplied includes not only the explicit fees and commissions reported as sales but also BEA's estimate of the value of implicit services provided by banks. For wholesale and retail trade, services supplied consists of reported sales of services plus BEA's estimate of the value of the distributive services provided by selling, or arranging for the sales of, goods. For industries other than insurance, banking, and wholesale and retail trade, services supplied consists of reported sales of services.

3. "Other" is calculated as a residual; it equals total sales less goods supplied and services supplied. It consists largely of investment income that is included in "sales or gross operating revenues" in the income statement. In three industries—finance; insurance carriers; and lessors of nonfinancial intangible assets, except copyrighted works—investment income is included in sales because it is generated by a primary activity of the company. In other industries, investment income is generally considered to be an incidental revenue source and is not included in sales. For insurance, "other" consists of reported investment income remaining after subtracting BEA's estimate of investment income earned on the funds that insurers hold on policyholders' behalf (which is added to reported sales of services to calculate services supplied) and adding expected or "normal" losses (which are subtracted from reported sales of services to calculate services supplied). For banking, "other" consists of the investment income remaining after subtracting BEA's estimate of the value of implicit services provided by banks (which is added to reported sales of services to calculate services supplied).

Table I.O 2

1. For industry classification, each U.S. parent was required to disaggregate its sales by four-digit International Surveys Industry code; the U.S. parent was then classified in the industry in which its sales were largest (for details, see "Worldwide Activities of U.S. Multinational Enterprises: Revised Results From the 2014 Benchmark Survey"). When sales are disaggregated by the industry of the U.S. parent, total sales of a given U.S. parent are shown in the industry in which the parent was classified. When sales are disaggregated by industry of sales, they are distributed among all the industries in which the U.S. parent reported sales; that is, sales associated with each industry of sales are shown in that industry regardless of the U.S. parent's industry of classification.

Table I.P 1

1. Profit-type return is an economic accounting measure of profits from current production. Unlike net income, it is gross of U.S. income taxes, excludes capital gains and losses and income from equity investments, and reflects certain other adjustments needed to convert profits from a financial accounting basis to an economic accounting basis.

2. Equals monetary interest payments plus imputed interest paid minus monetary interest receipts minus imputed interest received. Imputed interest paid and received, which are measures of the value of services provided by life insurance carriers and financial intermediaries without explicit charge, are estimated.

3. Equals taxes other than income and payroll taxes plus production royalty payments to governments less subsidies received.

4. Capital consumption allowance is used as a proxy for consumption of fixed capital. It consists of book-value depreciation charges reported on BEA's surveys using financial accounting principles.

5. Consists of gains or losses resulting from the sale or other disposition of assets, changes in the dollar value of parents' foreign-currency-denominated assets and liabilities that are caused by changes in exchange rates, and all other unusual or nonrecurring gains or losses, including those resulting from the revaluation of assets, whether realized or not.

Tables I.R 1 and I.R 2

1. Covers only U.S. parents in which there is direct investment by a foreign person—that is, U.S. parents that are owned 10 percent or more by a single foreign person. The foreign parent is the foreign person that holds a direct investment interest in the U.S. parent. The foreign parent group consists of (1) the foreign parent of a U.S. parent, (2) any foreign person, proceeding up the foreign parent's ownership chain, that owns more than 50 percent of the person below it, and (3) any foreign person, proceeding down the ownership chain(s) of each of these members, that is owned more than 50 percent by the foreign person above it.

2. Does not equal the total in column 3, which is derived from data reported on affiliates' forms, because of differences in timing and valuation and the inclusion of data for affiliates covered on U.S. parents' forms but exempt from being reported on affiliates' forms.

Part II. Majority-Owned Foreign Affiliates

Table II.A 1

1. The number of affiliates includes only the affiliates that meet the stated threshold; all other data are for all majority-owned affiliates.

Table II.A 2

1. The number of affiliates or parents includes only the entities that meet the stated threshold; all other data are for all majority-owned affiliates or for all parents of majority-owned affiliates.

Tables II.B 1–2, II.B 3–4, and II.B 11–12

1. Cash is defined broadly to include deposits in financial institutions and other cash items and cash equivalents, such as short-term, highly liquid investments that are both readily convertible to known amounts of cash and so close to their maturity that they present insignificant risk of changes in value because of changes in interest rates.

2. Before allowance of doubtful accounts.

Tables II.D 1, II.D 2, and II.D 11

1. Consists of gains or losses resulting from the sale or other disposition of assets, changes in the dollar value of foreign affiliates' assets and liabilities denominated in foreign currencies other than the affiliate's functional currency that are caused by changes in exchange rates, translation gains or losses taken in accordance with the Financial Accounting Standards Codification (ASC) Topic 830: "Foreign Currency Matters" (formerly known as FAS 52) and all other unusual or nonrecurring gains or losses, including those resulting from the revaluation of assets, whether realized or not.

Table II.D 13

1. For industry classification, each foreign affiliate was required to disaggregate its sales by four-digit International Surveys Industry code; the affiliate was then classified in the industry in which its sales were the largest (for details, see "Worldwide Activities of U.S. Multinational Enterprises: Revised Results From the 2014 Benchmark Survey"). When sales are disaggregated by industry of affiliate, total sales of an affiliate are shown in the industry in which the affiliate was classified. When sales are disaggregated by industry of sales, they are distributed among all the industries in which the affiliate reported sales; that is, sales associated with each industry of sales are shown in that industry regardless of the affiliate's industry of classification.

Table II.E 1

1. Goods and services supplied by an affiliate to persons in the country where the affiliate is located.

2. Goods or services supplied to U.S. parents include only goods or services supplied to the U.S. parent or parents of the supplying foreign affiliate. Goods or services supplied to U.S. parents not affiliated with the supplying foreign affiliate are included in the column for unaffiliated persons.

3. Goods or services supplied to other foreign affiliates include only goods or services supplied to foreign affiliates of the supplying foreign affiliate's U.S. parent or parents. Goods or services supplied to foreign affiliates of U.S. parents not affiliated with the supplying foreign affiliates are included in the column for unaffiliated persons.

4. Goods supplied are generally defined as sales of economic outputs that are tangible. For wholesale and retail trade, goods supplied includes only the value of goods resold; it consists of reported sales of goods less BEA's estimate of the value of the distributive services provided by selling, or arranging for the sale of, goods (this estimate is added to reported sales of services to calculate services supplied). For industries other than wholesale and retail trade, goods supplied consists of reported sales of goods.

5. Services supplied are generally defined as sales of economic outputs that are intangible. For insurance, services supplied consists of premiums remaining after provision for BEA's estimates of expected or "normal" losses and a measure of premium supplements, which represent income earned on funds that insurers hold on policyholders' behalf. For banking, services supplied includes not only the explicit fees and commissions reported as sales but also BEA's estimate of the value of implicit services provided by banks. For wholesale and retail trade, services supplied consists of reported sales of services plus BEA's estimate of the value of the distributive services provided by selling, or arranging for the sales of, goods. For industries other than insurance, banking, and wholesale and retail trade, services supplied consists of reported sales of services.

Tables II.E 2, II.E 3, and II.E 9

1. Goods and services supplied by an affiliate to persons in the country where the affiliate is located.

2. Goods or services supplied to U.S. parents include only goods or services supplied to the U.S. parent or parents of the supplying foreign affiliate. Goods or services supplied to U.S. parents not affiliated with the supplying foreign affiliate are included in the column for unaffiliated persons.

3. Goods or services supplied to other foreign affiliates include only goods or services supplied to foreign affiliates of the supplying foreign affiliate's U.S. parent or parents. Goods or services supplied to foreign affiliates of U.S. parents not affiliated with the supplying foreign affiliate are included in the column for unaffiliated persons.

Tables II.E 10 and II.E 11

1. Goods supplied are generally defined as sales of economic outputs that are tangible. For wholesale and retail trade, goods supplied includes only the value of goods resold; it consists of reported sales of goods less BEA's estimate of the value of the distributive services provided by selling, or arranging for the sale of, goods (this estimate is added to reported sales of services to calculate services supplied). For industries other than wholesale and retail trade, goods supplied consists of reported sales of goods.

2. Goods supplied by an affiliate to persons in the country where the affiliate is located.

3. Goods supplied to U.S. parents includes only goods supplied to the U.S. parent or parents of the supplying foreign affiliate. Goods supplied to U.S. parents not affiliated with the supplying foreign affiliate are included in the column for unaffiliated persons.

4. Goods supplied to other foreign affiliates includes only goods supplied to foreign affiliates of the supplying foreign affiliate's U.S. parent or parents. Goods supplied to foreign affiliates of U.S. parents not affiliated with the supplying foreign affiliate are included in the column for unaffiliated persons.

Tables II.E 12 and II.E 13

1. Services supplied are generally defined as sales of economic outputs that are intangible. For insurance, services supplied consists of premiums remaining after provision for BEA's estimates of expected or "normal" losses and a measure of premium supplements, which represent income earned on funds that insurers hold on policyholders' behalf. For banking, services supplied includes not only the explicit fees and commissions reported as sales but also BEA's estimate of the value of implicit services provided by banks. For wholesale and retail trade, services supplied consists of reported sales of services plus BEA's estimate of the value of the distributive services provided by selling, or arranging for the sales of, goods. For industries other than insurance, banking, and wholesale and retail trade, services supplied consists of reported sales of services.

2. Services supplied by an affiliate to persons in the country where the affiliate is located.

3. Services supplied to U.S. parents includes only services supplied to the U.S. parent or parents of the supplying foreign affiliate. Services supplied to U.S. parents not affiliated with the supplying foreign affiliate are included in the column for unaffiliated persons.

4. Services supplied to other foreign affiliates includes only services supplied to foreign affiliates of the supplying foreign affiliate's U.S. parent or parents. Services supplied to foreign affiliates of U.S. parents not affiliated with the supplying foreign affiliate are included in the column for unaffiliated persons.

Tables II.E 15, II.E 16, and II.E 17

1. Services supplied are generally defined as sales of economic outputs that are intangible. For insurance, services supplied consists of premiums remaining after provision for BEA's estimates of expected or "normal" losses and a measure of premium supplements, which represent income earned on funds that insurers hold on policyholders' behalf. For banking, services supplied includes not only the explicit fees and commissions reported as sales but also BEA's estimate of the value of implicit services provided by banks. For wholesale and retail trade, services supplied consists of reported sales of services plus BEA's estimate of the value of the distributive services provided by selling, or arranging for the sales of, goods. For industries other than insurance, banking, and wholesale and retail trade, services supplied consists of reported sales of services.

Tables II.F 1, II.F 2, and II.F 5

1. Profit-type return is an economic accounting measure of profits from current production. Unlike net income, it is gross of foreign income taxes, excludes capital gains and losses and income from equity investments, and reflects certain other adjustments needed to convert profits from a financial accounting basis to an economic accounting basis.

2. Equals monetary interest payments plus imputed interest paid minus monetary interest receipts minus imputed interest received. Imputed interest paid and received, which are measures of the value of services provided by life insurance carriers and financial intermediaries without explicit charge, are estimated.

3. Equals taxes other than income and payroll taxes plus production royalty payments to governments less subsidies received.

4. Capital consumption allowance is used as a proxy for consumption of fixed capital. It consists of book-value depreciation charges reported on BEA's surveys using financial accounting principles.

Tables II.F 7, II.F 8, and II.F 9

1. Profit-type return is an economic accounting measure of profits from current production. Unlike net income, it is gross of foreign income taxes, excludes capital gains and losses and income from equity investments, and reflects certain other adjustments needed to convert profits from a financial accounting basis to an economic accounting basis.