Page 1 of 16 U.S. DIRECT INVESTMENT ABROAD: Operations of U.S. Parent Companies and Their Foreign Affiliates Revised 1985 Estimates This publication presents revised estimates covering the financial structure and operations of nonbank U.S. companies and their nonbank foreign affiliates for fiscal year 1985. These estimates supplement those in "U.S. Multinational Companies: Operations in 1986", in the June 1988 SURVEY OF CURRENT BUSINESS. That article presented estimates of key items for 1985 and 1986, provided highlights of the operations of U.S. multinational companies (MNC's) in 1986 based on changes in assets, sales, employment, and U.S. merchandise trade, and discussed, in more detail, sales of services by U.S. MNC's in 1986. The estimates were obtained by expanding to universe totals sample data collected by the Bureau of Economic Analysis in the Annual Survey of U.S. Direct Investment Abroad, 1985. The estimating procedure used is parallel to that for the Annual Survey of Foreign Direct Investment in the United States discussed in "U.S. Affiliates of Foreign Companies: Operations in 1982", in the December 1984 SURVEY. Publications presenting estimates comparable to the 1985 estimates in this publication are available for 1982-84 and 1986. The estimates for 1983-84 and 1986 are contained in separate publications for each year. Estimates for 1982, which are from BEA's most recent benchmark survey, are published in "U.S. Direct Investment Abroad: 1982 Benchmark Survey Data". The estimates for 1983-86 are also available on computer diskette. Ordering informa- tion for the publications and diskettes follows the Footnotes. The concepts and definitions underlying the 1985 estimates are the same as those used for BEA's 1982 benchmark survey. To aid comparison of the 1985 annual survey estimates and the 1982 bench- mark survey data, a list of tables that provides cross-references to the tables in the benchmark survey publication is presented. Some of the tables in the benchmark survey publication do not have a counterpart in this publication, primarily because the annual survey excludes many items that were included in the bench- mark survey. In a few instances, data items collected separately in the benchmark survey were combined with other items in the annual survey. Thus, two or more items that appeared separately in a table in the benchmark survey publication may be shown as a single item in the corresponding table in this publication. Such instances are noted in the footnotes to the tables. Page 2 of 16 Tables 1 through 19 present estimates for all nonbank foreign affiliates of nonbank U.S. parents, tables 20 through 53 present estimates for majority-owned nonbank foreign affiliates of nonbank U.S. parents, and tables 54 through 58 present estimates for non- bank U.S. parents. Three columns (columns 13, 14, and 15) have been added to tables 34, 35, and 39-42 in this publicationin order to show total sales by affiliates to foreign countries, and the portion of the total that is to other foreign affiliates and the portion that is to unaffiliated foreigners. Comparable data for 1983 and 1984 can be calculated as the sum of columns 4 and 10 (equals column 13), columns 5 and 11 (equals column 14), and columns 6 and 12 (equals column 15) of the corresponding tables in the publications for those years. The annual survey data are stored on magnetic tape. BEA can make special tabulations or perform regressions or other statisti- cal analyses of the data at cost, within the limits of available resources and subject to the legal requirement to avoid disclosure of data of individual companies. Requests should be directed to International Investment Division (BE-50), Data Retrieval and Analysis Branch, Bureau of Economic Analysis, U.S. Department of Commerce, Washington, DC 20230. For other assistance, contact David Galler, International Investment Division (BE-50), Direct Investment Abroad Branch, Bureau of Economic Analysis, U.S. Department of Commerce, Washington, DC 20230, or call (202) 523-0612. Page 3 of 16 LIST OF TABLES Nonbank Affiliates of Nonbank U.S. Parents Tables Corresponding to Those Included in the Comparable Table Methodology of the Benchmark Survey Publication: in the Benchmark Survey Publica- tion --------------- 1. Selected Data for Foreign Affiliates in All Countries Table 5, in Which Investment Was Reported selected columns, nonbank affiliates only 2. Selected Data for Foreign Affiliates and U.S. Parents Table 6, in All Industries selected columns, nonbank affiliates and nonbank U.S. parents only Assets: 3. Total Assets of Affiliates, Country by Industry II.A5 4. Total Assets of Affiliates, Industry by Country II.A6 5. Total Assets of Affiliates, Industry of U.S. Parent II.A15 by Country Income Statement: 6. Sales by Affiliates, Country by Industry II.D3 7. Sales by Affiliates, Industry by Country II.D4 8. Net Income of Affiliates, Country by Industry II.D6 9. Net Income of Affiliates, Industry by Country II.D7 10. Sales by Affiliates, Industry of U.S. Parent by Country II.D9 Employment and Employee Compensation: 11. Employment of Affiliates, Country by Industry II.F3 12. Employment of Affiliates, Industry by Country II.F4 13. Employee Compensation of Affiliates, Country by Industry II.F6 14. Employee Compensation of Affiliates, Industry by Country II.F7 15. Employment of Affiliates, Industry of U.S. Parent by Country II.F11 Page 4 of 16 U.S. Merchandise Trade: 16. U.S. Exports Shipped to Affiliates, Country of Affiliate II.G3 by Industry of Affiliate 17. U.S. Exports Shipped to Affiliates, Industry of Affiliate II.G4 by Country of Affiliate 18. U.S. Imports Shipped by Affiliates, Country of Affiliate II.G20 by Industry of Affiliate 19. U.S. Imports Shipped by Affiliates, Industry of Affiliate II.G21 by Country of Affiliate Majority-Owned Nonbank Affiliates of Nonbank U.S. Parents Balance Sheet: 20. Balance Sheet of Affiliates, Country by Account III.A1 and A2, selected columns 21. Balance Sheet of Affiliates, Industry by Account III.A3 and A4, selected columns 22. Total Assets of Affiliates, Country by Industry III.A5 23. Total Assets of Affiliates, Industry by Country III.A6 24. Net Property, Plant, and Equipment of Affiliates, Country III.A7 by Industry 25. Balance Sheet of Affiliates, Industry of U.S. Parent by III.A13 and Country A14, selec- ted columns External Financial Position: 26. External Financial Position of Affiliates, Selected Industry III.B1, and Transactor by Account columns 1 through 5 Income Statement: 27. Income Statement of Affiliates, Country by Account III.D1, selected columns 28. Income Statement of Affiliates, Industry by Account III.D2, selected columns 29. Sales by Affiliates, Country by Industry III.D3 30. Sales by Affiliates, Industry by Country III.D4 31. Net Income of Affiliates, Country by Industry III.D6 32. Net Income of Affiliates, Industry by Country III.D7 33. Income Statement of Affiliates, Industry of U.S. Parent by III.D8, Account selected columns Page 5 of 16 Sales: 34. Sales by Affiliates, Country of Affiliate by Destination III.E1 35. Sales by Affiliates, Industry of Affiliate by Destination III.E2 36. Local Sales by Affiliates, Country of Affiliate by Industry III.E3 of Affiliate 37. Sales by Affiliates to the United States, Country of III.E4 Affiliate by Industry of Affiliate 38. Sales by Affiliates to "Other" Countries, Country of III.E5 Affiliate by Industry of Affiliate 39. Sales of Goods by Affiliates, Country of Affiliate by See foot- Destination notes for reference to compa- rable tables 40. Sales of Goods by Affiliates, Industry of Affiliate by See foot- Destination notes for reference to compa- rable tables 41. Sales of Services by Affiliates, Country of Affiliate by See foot- Destination notes for reference to compa- rable tables 42. Sales of Services by Affiliates, Industry of Affiliate by See foot- Destination notes for reference to compa- rable tables 43. Sales of Goods by Affiliates, Industry by Country III.E13 44. Sales of Services by Affiliates, Industry by Country III.E15 45. Sales by Affiliates, Industry of Affiliate by Industry of III.E17 Sales Employment and Employee Compensation: 46. Employment of Affiliates, Country by Industry III.F3 47. Employment of Affiliates, Industry by Country III.F4 48. Employee Compensation of Affiliates, Country by Industry III.F6 49. Employee Compensation of Affiliates, Industry by Country III.F7 Page 6 of 16 U.S. Merchandise Trade: 50. U.S. Merchandise Trade With Affiliates, by Country of See foot- Affiliate notes for references to compa- rable tables 51. U.S. Merchandise Trade With Affiliates, by Industry of See foot- Affiliate notes for references to compa- rable tables 52. U.S. Exports Shipped to Affiliates, Country of Affiliate III.G3 by Industry of Affiliate 53. U.S. Imports Shipped by Affiliates, Country of Affiliate III.G20 by Industry of Affiliate Nonbank U.S. Parents: 54. Selected Financial and Operating Data of U.S. Parents, See foot- by Industry of U.S. Parent notes for references to compa- rable tables 55. Sales of Goods and Services by U.S. Parents, Industry of II.N1, U.S. Parent by Type and Destination selected columns 56. Sales by U.S. Parents, Industry of U.S. Parent by Industry See foot- of Sales notes for references to compa- rable tables 57. U.S. Exports Associated With U.S. Parents and Their Foreign II.P1 Affiliates, by Industry of U.S. Parent 58. U.S. Imports Associated With U.S. Parents and Their Foreign II.P4 Affiliates, by Industry of U.S. Parent Page 7 of 16 TABLES General Notes to Tables - The estimates are on a fiscal year basis; the fiscal year is defined as the affiliate's or parent's financial reporting year that ended in that calendar year. All balances are as of the close of FY 1985. - A "majority-owned nonbank affiliate" is a nonbank 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 the data are disaggregated by country of foreign affiliate. - Unless otherwise specified, the designation "by industry" in a table title indicates that the data are disaggregated by industry of foreign affiliate. - A list and description of industry codes used by BEA for classifying direct investment are found in BEA's "Direct Investment Industry and Foreign Trade Classification Booklet". - The major industry classification "petroleum" includes all of the various three-digit BEA petroleum subindustries. All other major industries exclude these petroleum subindustries. For example, mining excludes crude petroleum (no refining) and gas; manufacturing excludes petroleum refining and coal products; retail trade excludes gasoline service stations; and wholesale trade excludes petroleum wholesale trade. - OPEC is the Organization of Petroleum Exporting Countries. The members of OPEC are Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. - The country category "International" consists of affiliates that have operations spanning more than one country and that are engaged in petroleum shipping, other water transportation, or oil and gas drilling. - Detail may not add to totals because of rounding. - For items shown in millions of dollars, an asterisk (*) indicates an amount between -$500,000 and +$500,000; for items shown in thousands of employees, it indicates a number between 0 and 50. - A "(D)" indicates that the data in the cell have been suppressed to avoid disclosure of data of individual companies. - The individual countries or industries included in a country or industry group shown in the heading or stub of a table may be ascertained by referring to table 1 (for countries) or table 2 (for industries). - All footnotes follow the last table. Page 8 of 16 Footnotes to Tables Table 1: 1. Includes data for nonbank foreign affiliates of nonbank U.S. parents. The comparable table in the 1982 bench- mark survey publication includes data for all affiliates. Table 2: 1. Includes data for nonbank foreign affiliates and their nonbank U.S. parents. The comparable table in the 1982 benchmark survey publication includes data for all foreign affiliates and all U.S. parents. Table 20: 1. All marketable securities held by insurance companies are treated as noncurrent; therefore, they are excluded from column 4 and included in column 9 of this table. 2. Comparable to the sum of columns 3, 4, and 8 of table III.A1 in the 1982 benchmark survey publication. 3. Comparable to the sum of columns 11, 12, and 13 of table III.A1 in the 1982 benchmark survey publication. Table 21: 1. See footnote 1 to table 20. 2. Comparable to the sum of columns 3, 4, and 8 of table III.A3 in the 1982 benchmark survey publication. 3. Comparable to the sum of columns 11, 12, and 13 of table III.A3 in the 1982 benchmark survey publication. Table 25: 1. See footnote 1 to table 20. 2. Comparable to the sum of columns 3, 4, and 8 of table III.A13 in the 1982 benchmark survey publication. 3. Comparable to the sum of columns 11, 12, and 13 of table III.A13 in the 1982 benchmark survey publication. Table 26: 1. For most unincorporated affiliates, cumulative retained earnings---which are an internal, not an external, source of funds---generally are excluded from this item. In those instances where cumulative retained earnings were not recorded separately on the affiliates' books, however, they are included. In column 5, table III.B1, in the 1982 benchmark survey publication, this item included cumulative retained earnings for all unincorporated affiliates. Page 9 of 16 2. For all industries combined and for each of the selected industries, data for this line---position with all transactors combined---are related to data in table 21 in the following manner: Column 3 (of this table) equals column 11 of table 21 and column 4 equals column 13 of table 21. Table 27: 1. Comparable to the sum of columns 3 and 4 of table III.D1 in the 1982 benchmark survey publication. 2. Comparable to the sum of columns 5 and 6 of table III.D1 in the 1982 benchmark survey publication. Consists of net exchange gains or losses resulting from the translation of affiliates' financial statements from local currencies into U.S. dollars due to changes in exchange rates between local currencies and the dollar, per Financial Accounting Standards Board Statement No. 52 (FASB 52) and those net realized and unrealized extraordinary gains or losses that, under U.S. generally accepted accounting principles (GAAP), are to be included in income. 3. Comparable to the sum of columns 10 and 12 of table III.D1 in the 1982 benchmark survey publication. 4. Consists of the increase or decrease during the current year in the balance sheet's translation adjustment account resulting from following FASB 52, and those net realized and unrealized extraordinary gains or losses that, under GAAP, are excluded from income. 5. Comparable to column 4 of table III.C1 in the 1982 benchmark survey publication. 6. Comparable to column 3 of table III.J3 in the 1982 benchmark survey publication. 7. Comparable to column 4 of table III.J3 in the 1982 benchmark survey publication. Table 28: 1. Comparable to the sum of columns 3 and 4 of table III.D2 in the 1982 benchmark survey publication. 2. Comparable to the sum of columns 5 and 6 of table III.D2 in the 1982 benchmark survey publication. For definition, see footnote 2 to table 27. 3. Comparable to the sum of columns 10 and 12 of table III.D2 in the 1982 benchmark survey publication. 4. See footnote 4 to table 27. 5. Comparable to column 4 of table III.C2 in the 1982 benchmark survey publication. 6. Comparable to column 3 of table III.J4 in the 1982 benchmark survey publication. 7. Comparable to column 4 of table III.J4 in the 1982 benchmark survey publication. Page 10 of 16 Table 33: 1. Comparable to the sum of columns 3 and 4 of table III.D8 in the 1982 benchmark survey publication. 2. Comparable to the sum of columns 5 and 6 of table III.D8 in the 1982 benchmark survey publication. For definition, see footnote 2 to table 27. 3. Comparable to the sum of columns 10 and 12 of table III.D8 in the 1982 benchmark survey publication. 4. See footnote 4 to table 27. 5. Comparable to column 4 of table III.C3 in the 1982 benchmark survey publication. Tables 34 and 35: 1. Sales charged by an affiliate to persons in the country where the affiliate is located. 2. Column 13 equals the sum of columns 4 and 10; column 14 equals the sum of columns 5 and 11, and column 15 equals the sum of columns 6 and 12. 3. Includes the U.S. parent and its foreign affiliates; equals the sum of columns 5, 8, and 11. Table 36: 1. See footnote 1 to table 34. Table 38: 1. "Other" countries are countries other than the United States and the country where the affiliate is located. Table 39: 1. Consists of sales associated with industries coded in the 000, 100, 200, 300, or 500 series, except 070, 108, and 138. See BEA's DIRECT INVESTMENT INDUSTRY AND FOREIGN TRADE CLASSIFICATIONS BOOKLET for a description of these codes. 2. See footnote 1 to table 34. 3. See footnote 2 to table 34. 4. Comparable to column 5 of table III.E10 in the 1982 benchmark survey publication. 5. See footnote 2 to table 34. 6. Comparable to column 6 of table III.E10 in the 1982 benchmark survey publication. 7. Comparable to column 7 of table III.E10 in the 1982 benchmark survey publication. 8. Comparable to column 8 of table III.E10 in the 1982 benchmark survey publication. Table 40: 1. See footnote 1 to table 39. 2. See footnote 1 to table 34. 3. See footnote 2 to table 34. 4. Comparable to column 5 of table III.E11 in the 1982 benchmark survey publication. Page 11 of 16 5. See footnote 2 to table 34. 6. Comparable to column 6 of table III.E11 in the 1982 benchmark survey publication. 7. Comparable to column 7 of table III.E11 in the 1982 benchmark survey publication. 8. Comparable to column 8 of table III.E11 in the 1982 benchmark survey publication. Table 41: 1. Consists of sales associated with industries coded in the 400, 600, 700, or 800 series, or in codes 070, 108, and 138. See BEA's DIRECT INVESTMENT INDUSTRY AND FOREIGN TRADE CLASSIFICATIONS BOOKLET for a description of these codes. 2. See footnote 1 to table 34. 3. See footnote 2 to table 34. 4. Comparable to column 9 of table III.E10 in the 1982 benchmark survey publication. 5. See footnote 2 to table 34. 6. Comparable to column 10 of table III.E10 in the 1982 benchmark survey publication. 7. Comparable to column 11 of table III.E10 in the 1982 benchmark survey publication. 8. Comparable to column 12 of table III.E10 in the 1982 benchmark survey publication. Table 42: 1. See footnote 1 to table 41. 2. See footnote 1 to table 34. 3. See footnote 2 to table 34. 4. Comparable to column 9 of table III.E11 in the 1982 benchmark survey publication. 5. See footnote 2 to table 34. 6. Comparable to column 10 of table III.E11 in the 1982 benchmark survey publication. 7. Comparable to column 11 of table III.E11 in the 1982 benchmark survey publication. 8. Comparable to column 12 of table III.E11 in the 1982 benchmark survey publication. Table 43: 1. See footnote 1 to table 39. Table 44: 1. See footnote 1 to table 41. Page 12 of 16 Table 45: 1. For industry classification, each foreign affiliate was required to disaggregate its sales by three-digit industry; the affiliate was first classified in a major industry group (e.g., mining, petroleum, or manufac- turing), and then was classified in the industry in this group in which its sales were largest. When sales are disaggregated by industry of affiliate, total sales of a given affiliate are shown in the single industry in which the affiliate was classified; when disaggregated by industry of sales, they are distributed among all the industries in which the affiliate reported sales---i.e., sales associated with each industry of sales are shown in that industry regardless of the affiliate's industry of classification. 2. In the breakdown of foreign affiliates' sales by industry of sales, only the five largest categories had to be specified. If a given affiliate had sales in more than five industries, the distribution of its sales in the specified industries would have covered less than 100 percent of its total sales. Sales in all unspeci- fied industries combined are shown in this column. Table 50: 1. Equals column 1, table 52. Comparable to column 1 of table III.G1 in the 1982 benchmark survey publication. 2. Comparable to column 1 of table III.G5 in the 1982 benchmark survey publication. 3. Comparable to column 1 of table III.G9 in the 1982 benchmark survey publication. 4. Equals column 1, table 53. Comparable to column 1 of table III.G18 in the 1982 benchmark survey publication. 5. Comparable to column 1 of table III.G22 in the 1982 benchmark survey publication. 6. Comparable to column 1 of table III.G26 in the 1982 benchmark survey publication. Table 51: 1. Comparable to column 1 of table III.G2 in the 1982 benchmark survey publication. 2. Comparable to column 1 of table III.G6 in the 1982 benchmark survey publication. 3. Comparable to column 1 of table III.G10 in the 1982 benchmark survey publication. 4. Comparable to column 1 of table III.G19 in the 1982 benchmark survey publication. 5. Comparable to column 1 of table III.G23 in the 1982 benchmark survey publication. 6. Comparable to column 1 of table III.G27 in the 1982 benchmark survey publication. Page 13 of 16 Table 52: 1. Equals column 1, table 50. Table 53: 1. Equals column 4, table 50. Table 54: 1. Comparable to column 1 of table II.K1 in the 1982 benchmark survey publication. 2. Comparable to column 2 of table II.K2 in the 1982 benchmark survey publication. 3. Comparable to column 9 of table II.K2 in the 1982 benchmark survey publication. 4. Comparable to column 2 of table II.M1 in the 1982 benchmark survey publication. 5. Comparable to column 11 of table II.M1 in the 1982 benchmark survey publication. 6. Comparable to column 1 of table II.L2 in the 1982 benchmark survey publication. Includes (1) capitalized expenditures for land, timber, mineral rights, and other plant and equipment items, such as structures, machin- ery, special tools, deposit containers, and construction in progress; and (2) all exploration and development expenditures, whether capitalized or expensed, including expensed expenditures to acquire or mineral rights. For U.S. parents classified in insurance, this item includes all expenditures for property, plant, and equipment items, wherever carried in the balance sheet. 7. Comparable to column 3 of table II.O1 in the 1982 benchmark survey publication. 8. Comparable to column 1 of table II.O1 in the 1982 benchmark survey publication. Table 55: 1. See footnote 1 to table 39. 2. See footnote 1 to table 41. Table 56: 1. For industry classification, each U.S. parent was required to disaggregate its sales by three-digit industry; the U.S. parent was first classified in a major industry group (e.g., mining, petroleum, or manufacturing), and then was classified in the industry in this group in which its sales were largest. When sales are disaggregated by industry of U.S. parent, total sales of a given U.S. parent are shown in the single industry in which the U.S. parent was classified; when disaggregated by industry of sales, they are distributed among all the industries in which the U.S. parent reported sales---i.e., sales associated with each industry of sales are shown in that industry regardless of the U.S. parent's industry of classification. Page 14 of 16 Includes data for nonbank U.S. parents of nonbank affiliates. The comparable table III.N2 in the 1982 benchmark survey publication includes data only for nonbank U.S. parents of majority-owned nonbank affil- iates. Thus, this table includes, but table III.N2 in the 1982 benchmark survey publication excludes, data for U.S. parents that have only minority-owned affiliates. Data for these parents are probably small. 2. In the breakdown of U.S. parents' sales by industry of sales, only the eight largest categories had to be specified. If a given U.S. parent had sales in more than eight industries, the distribution of its sales in the specified industries would have covered less than 100 percent of its total sales. Sales in all unspeci- fied industries combined are shown in this column. Page 15 of 16 Ordering Publications and Diskettes on U.S. Direct Investment Abroad Publications containing estimates of the operations of U.S. companies and of their foreign affiliates in the same detail as in this publication for 1985 are available for 1983-84 and 1986-87. The estimates for 1983-87 are also available on computer diskette. The 1983-85 publications, and the diskettes for all years, may be obtained from: Economic and Statistical Analysis/BEA, U.S. Department of Commerce, Citizens and Southern National Bank, 222 Mitchell Street, P.O. Box 100606, Atlanta, GA 30384. Make checks payable to "Economic and Statistical Analysis/BEA." Diskettes are $20 for each year. The titles, accession numbers, and prices of the publications, and years and accession numbers of the diskettes, which should be quoted when ordering, are as follows: _________________________________________________________________ Publication _________________________________________________________________ Year Title Accession Price Number _________________________________________________________________ U.S. Direct Investment Abroad: Operations of U.S. Parent Com- panies and Their Foreign Affiliates: 1983 Revised 1983 Estimates BEA IID 86-103 5.00 1984 Revised 1984 Estimates BEA IID 87-103 5.00 1985 Revised 1985 Estimates BEA IID 88-103 5.00 1986 Revised 1986 Estimates 1 1 1987 Preliminary 1987 Estimates 1 1 _________________________________________________________________ 1. Not available from BEA. Order from Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402; Stock No. 003-010-00189-5 for the 1986 publication and Stock No. 003-010-00191-7 for the 1987 publication. Prices may be obtained from GPO by calling (202) 783-3238. Page 16 of 16 ______________________________ Diskette ($20.00/year) ______________________________ Year Accession Number ______________________________ 1983 BEA IID 86-403 1984 BEA IID 87-409 1985 BEA IID 88-403 1986 BEA IID 89-403 1987 BEA IID 89-404 ______________________________ For 1982, estimates in greater detail than those for 1983-87 may be found in "U.S. Direct Investment Abroad: 1982 Benchmark Survey Data". That publication, which contains detailed results of the most recent (1982) benchmark survey and a methodology for U.S. direct investment abroad, may be obtained from the Superintendent of Documents, U.S. GPO; Stock No. 003-010-00161-5, price $18.00.