Form BE-15(LF) BE-15(LF)--Long Form

Annual Survey of Foreign Direct Investment in the United States

be15lf

Annual Survey of Foreign Direct Investment in the United States

OMB: 0608-0034

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FORM

BE-15(LF)

(REV. 9/2006)

OMB No. 0608-0034: Approval Expires XX/XX/XX

BEA Identification Number

ANNUAL SURVEY OF FOREIGN DIRECT INVESTMENT IN
THE UNITED STATES – 2006
(LONG FORM)
MANDATORY — CONFIDENTIAL

DUE DATE: MAY 31, 2007

IDENTIFICATION OF U.S. AFFILIATE

ELECTRONIC Go to www.bea.gov/astar for details
FILING:
OR
U.S. Department of Commerce
MAIL
Bureau of Economic Analysis
REPORTS
BE-49(A)
TO:
Washington, DC 20230
OR
U.S. Department of Commerce
DELIVER
Bureau of Economic Analysis, BE-49(A)
REPORTS
Shipping and Receiving Section, M100
TO:
1441 L Street, NW
Washington, DC 20005

Email:

ASSISTANCE
be12/15@bea.gov

Telephone:

(202) 606-5577

Name of U.S. affiliate
1002 0

c/o (care of)
1010 0

Street or P.O. Box
1003 0

City and State
1004 0

(202) 606-5319

FAX:

Name and address of U.S. business enterprise – If a label has
been affixed, make any changes directly on the label. If a label has
not been affixed, enter the BEA Identification Number of this U.S.
affiliate, if available, in the box at the upper right hand corner of this
page.

ZIP Code

Copies of blank forms:

Foreign Postal Code

1005 0

http://www.bea.gov/bea/surveys/fdiusurv.htm

IMPORTANT
Please read the Instructions, starting on page 21, before completing this form. Definitions of key terms used in this
report are found starting on page 23. Insurance and real estate companies see Special Instructions on page 26.
• Who must report – See Instruction I.A. starting on page 21.
• Which form to file – See Instruction I.A.1 starting on page 21.
• Accounting principles – Use U.S. Generally Accepted Accounting Principles (U.S. GAAP) in completing Form
BE-15(LF) except where asked to deviate from U.S. GAAP by a specific instruction. References in the instructions
to Financial Accounting Board Standards are referred to as "FAS." DO NOT use International Financial Reporting
Standards or reporting standards that are not U.S. GAAP.
• U.S. affiliate’s 2006 fiscal year – The U.S. affiliate’s financial reporting year that had an ending date in calendar year 2006.
• Consolidated reporting – A U.S. affiliate must file on a fully consolidated domestic U.S. basis, including in the
consolidation all non-bank U.S. affiliates in which it directly or indirectly owns more than 50 percent of the
outstanding voting interest. The consolidation rules are found in instruction IV.2 on page 23.
• Rounding – 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 $1,334,891.00 report as:

Bil.

Mil.

Thous. Dols.

Public reporting burden for this short form is estimated to vary from 4 to 550 hours per response, with an average of 49 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
0608-0034, Washington, DC 20503.
MANDATORY — This survey is being conducted under 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).
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.
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).
These civil penalties are subject to inflationary adjustments. Those adjustments are found in 15 CFR 6.4.
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.
PERSON TO CONSULT CONCERNING QUESTIONS
ABOUT THIS REPORT — Enter name and address
Name

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.D. on page 23, estimates may
have been provided.

1000

Address 1029 0
1030 0

Authorized official’s signature

1031 0

TELEPHONE
NUMBER
FAX NUMBER

1001

0 Area code

Number

0999

0 Area code

Number

Date

Print or type name and title

Extension

Telephone number

FAX number

May we use e-mail to correspond with you to discuss questions relating to this Form BE-15(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.)
1027

1
1

1
2

Yes (If yes, please provide your e-mail address.)
No

E-mail address
0
1028

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BE-15(LF), Page 1, Pantone 199 red, 10%

PART I — IDENTIFICATION OF U.S. AFFILIATE
Additional Instructions by line item are at the back of this form starting with Section IV of the
instructions on page 21.
IDENTIFICATION OF U.S. AFFILIATE
1. What financial reporting standards were used to complete this BE-15 report? NOTE:
Unless it is highly burdensome or not feasible, the BE-15 report should be completed using
U.S. Generally Accepted Accounting Principles (U.S. GAAP).
1399 1
1

1
2

U.S. Generally Accepted Accounting Principles
International Financial Reporting Standards or other reporting standards, but with
adjustments to correct for any material differences between U.S. GAAP and the
reporting standards used. Specify the reporting standards used.

International Financial Reporting Standards or other reporting standards, but without
adjustments to correct for any material differences between U.S. GAAP and the
reporting standards used. Specify the reporting standards used.

2. Consolidated reporting by the U.S. affiliate – The consolidation rules are found in instruction 23 on page 24.
Is more than 50 percent of the voting interest in this U.S. affiliate owned by another
U.S. affiliate of your foreign parent?
1400 1
1

1
2

Yes
No

If the answer is "Yes" – Do not complete this report unless exception described in the
consolidation rules on page 24 applies. If this exception does not apply, please forward this BE-15
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-15 Supplement C with item 2(b) completed.
If the answer is "No" – Complete this report in accordance with the consolidation rules on pages 23 and 24.
3. Enter Employer Identification Number(s) used by the U.S. affiliate to file income and payroll taxes.
Primary
1006 1

–

Other
2

–

4. REPORTING PERIOD – Reporting period instructions are found on
page 24.

Month Day
1007

Year

This U.S. affiliate’s fiscal year ended in calendar year 2006 on
Example – If the fiscal year ended on March 31, report for the 12 month period ended March 31, 2006.
5. Did the U.S. business enterprise become a U.S. affiliate
during its fiscal year that ended in calendar year 2006?
1008 1
1

1
2

Yes – If "Yes" – Enter date U.S. business enterprise became
a U.S. affiliate and see instruction 5 on page 7.
No

Month Day

Year

1009 1

NOTE – For a U.S. business enterprise that became a U.S. affiliate during its fiscal year that ended
in calendar year 2006, leave the close FY 2005 data columns blank.
Remarks

FORM BE-15(LF) (REV. 9/2006)

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PART 1 — IDENTIFICATION OF U.S. AFFILIATE — Continued
6. Form of organization of U.S. affiliate — Mark (X) one
1

1011

Incorporated in U.S.

Reporting rules for unincorporated affiliates are
found in instruction 6 starting on page 24.

2
1
1

3
4

U.S. partnership — Reporting rules for
partnerships are found in instruction 6b
starting on page 24.
U.S. branch of a foreign person
Limited Liability Company (LLC) —
Reporting rules for LCCs are found in
instruction 6c on page 25.

Real property not in 1–4 above — Reporting rules for real
estate are found in instruction V.C. on page 27.
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
Other — Specify

7. U.S. affiliates fully consolidated in this report — The consolidation rules are found starting on page 23.
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
consolidated in this report, enter the number of U.S. affiliates consolidated. Hereinafter they are considered to be one U.S.
affiliate. Exclude from the consolidation all minority-owned U.S. business enterprises, and all foreign business
enterprises owned by this U.S. affiliate. Foreign operations in which you own a majority interest are to be
deconsolidated. Include unconsolidated businesses on an equity basis or, if less than 20 percent owned, in accordance with
FAS 115 or the cost basis. Except as noted in the consolidation rules, 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
consolidated should file a separate Form BE-15(LF) or BE-15(SF).
1012 1

Number — If number is greater than one, complete the Supplement A.
8. U.S. affiliates NOT fully consolidated — See instruction 8 on page 25.
Number — If number is not zero, complete the Supplement B. The U.S. affiliate named
on page 1 must include data for unconsolidated U.S. affiliates on an equity basis or, if less
than 20 percent owned, in accordance with FAS 115 or the cost basis, and notify the
unconsolidated U.S. affiliates of their obligation to file a Form BE-15(LF), BE-15(SF), or BE-15
Supplement C in their own names.

1013 1

9. Does this U.S. affiliate own any foreign operations?
1
1014
1

1
2

Yes
No

If "Yes" — DO NOT consolidate foreign operations. Foreign operations in which you own an
interest of at least 20 percent, including those in which you own a majority interest, are to be
deconsolidated and reported using the equity method of accounting. If your ownership
interest is less than 20 percent, foreign operations are to be reported using the cost method
of accounting or in accordance with FAS 115. Reporting rules for foreign operations are
found in the instruction 2a starting on page 23.
U.S.
Affiliate
U.S.
Foreign
Foreign operations
owned by the
U.S. Affiliate

Do not consolidate
foreign operations
owned by the
U.S. Affiliate

10. Did this U.S. affiliate acquire or establish any U.S. business enterprises or segments during the reporting
period that are now either contained in this report on a fully consolidated basis, merged into this U.S.
affiliate, or reflected as an equity investment?
1015 1
1

1
2

Yes
No

If "Yes" — File a Form BE-13 to reflect each acquisition if you have not done so already.
Forms can be found at: www.bea.gov/bea/surveys/fdiusurv.htm

11. Did this U.S. affiliate sell, transfer ownership of, or liquidate any of its U.S. subsidiaries, operating

divisions, segments, etc., during its fiscal year that ended in calendar year 2006?
1016 1
1

1
2

Yes
No

Remarks

PLEASE CONTINUE ON PAGE 5.
FORM BE-15(LF) (REV. 9/2006)

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PART I — IDENTIFICATION OF U.S. AFFILIATE – Continued
FOREIGN PARENT AND UBO INDUSTRY CODES
Note: "ISI codes" are International Surveys Industry codes, as given in the Guide to Industry
and Foreign Trade Classifications for International Surveys, 2002.
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 ISI code 5252 that is estates and trusts)
05 Individual
Private business enterprise, investment organization,or group engaged in:
06 Insurance (ISI codes 5242, 5243, 5249)
07 Agriculture, forestry, fishing and hunting (ISI codes 1110–1140)
08 Mining (ISI codes 2111–2127)
09 Construction (ISI codes 2360–2380)
10 Transportation and warehousing (ISI codes 4810–4939)
11 Utilities (ISI codes 2211–2213)
12 Wholesale and retail trade (ISI codes 4231–4251 and 4410–4540)
13 Banking, including bank holding companies (ISI codes 5221 and 5229)
14 Holding companies, excluding bank holding companies (ISI codes 5512 and 5513)
15 Other finance (ISI codes 5223, 5224, 5231, 5238, that part of ISI code 5252 that is not estates and trusts,
and ISI code 5331)
16 Real estate (ISI code 5310)
17 Information (ISI codes 5111–5191)
18 Professional, scientific, and technical services (ISI codes 5411–5419)
19 Other services (ISI codes 1150, 2132, 2133, 5321, 5329, and 5611–8130)
Manufacturing, including fabricating, assembling, and processing of goods:
20 Food (ISI codes 3111–3119)
21 Beverages and tobacco products (ISI codes 3121 and 3122)
22 Pharmaceuticals and medicine (ISI code 3254)
23 Other chemicals (ISI codes 3251–3259, except 3254)
24 Nonmetallic mineral products (ISI codes 3271–3279)
25 Primary and fabricated metal products (ISI codes 3311–3329)
26 Computer and electronic products (ISI codes 3341–3346)
27 Machinery manufacturing (ISI codes 3331–3339)
28 Electrical equipment, appliances and components (ISI codes 3351–3359)
29 Motor vehicles and parts (ISI codes 3361–3363)
30 Other transportation equipment (ISI codes 3364–3369)
31 Other manufacturing (ISI codes 3130–3231, 3261, 3262, 3370–3399)
32 Petroleum manufacturing, including integrated petroleum and petroleum refining without extraction
(ISI codes 3242–3244)

FORM BE-15(LF) (REV. 9/2006)

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PART I — IDENTIFICATION OF U.S. AFFILIATE – Continued
IMPORTANT NOTE – Complete columns 3 and 4 ONLY if the percentage of direct voting ownership given in columns 1 and 2
DOES NOT equal the equity interest. "Voting interest" and "equity interest" are defined in instructions 12–16 on page 25.
Ownership — Enter percent of ownership, in this U.S. affiliate, to a tenth of one percent, based on voting and equity interests
if an incorporated affiliate or an equivalent interest if an unincorporated affiliate.
Foreign parent — A foreign parent is the
FIRST person or entity outside the U.S. in
a chain of ownership that has an
investiment (direct or indirect) in this
U.S. affiliate.
Ownership held directly by foreign
parents of this affiliate — Give name of
each foreign parent with direct ownership.
(If more than 2, continue on a separate
sheet.)

REPORTING PERIOD
Country of
Voting interest
Equity interest
incorporation or
organization, if a
BEA
business enterprise, or
USE
residence, if an
ONLY
Close
FY
2005
Close
FY
2006
Close
FY
2005
Close
FY
2006
individual. For
individuals, see
instruction V.F. on
page 28.
(1)
(2)
(3)
(4)
(5)
1

12.

1017

13.
Ownership held indirectly by foreign
parents of this U.S. affiliate through
another U.S. affiliate — Give name of
each higher tier U.S. affiliate that owns this
U.S. affiliate. (If more than 2, continue on a
separate sheet.)

1018

2
.

3
.

4
.

5
.

Country of
foreign parent of
each
U.S. affiliate
1

14.

1063

15.

1064

16a. All other U.S. persons

1061

1062

TOTAL of directly held ownership interests —
Sum of items 12 through 16b.

2
.

100.0%

3
.

16b. All other foreign persons

4
.

100.0%

17. Enter the name and industry code of the foreign parent. If there is more than one foreign parent, list each and
its industry code on a separate sheet.
Enter name of foreign parent. If the foreign parent is an individual enter "individual."
17a.
3011 0

Enter the foreign parent industry code from the list of codes on page 4 that best describes the PRIMARY activity of
the SINGLE entity named as the foreign parent. DO NOT base the code on the world-wide sales of all consolidated
subsidiaries of the foreign parent.

17b.

3018 1

18.

For each foreign parent, furnish the name, country and industry code of the ultimate beneficial owner (UBO). If there is
more then one foreign parent, list each on a separate sheet and give the name of its UBO, and the UBO’s country and
industry codes.

18a. Is the foreign parent also the UBO? If the foreign parent is owned or controlled more than 50 percent by another person
or entity, then the foreign parent is NOT the UBO. The UBO is that person or entity, proceeding up the ownership chain
beginning with and including the foreign parent, that is not more than 50 percent owned or controlled by another person or
entity. See instruction II.Q. on page 23 for the complete definition of UBO.
1

3019

Yes — Skip to 18d.

No – Continue with 18b.

Enter the name of the UBO of the foreign parent. If the UBO is an individual enter "individual."
Identifying the UBO as "bearer shares" is not an acceptable response.

18b.

3021 0

BEA USE ONLY

Enter country of UBO. For individuals, see instruction V.F. on page 28.

18c.

3022 1

18d.

Enter the industry code of the UBO from the list of codes on page 4. NOTE — UBO industry code is based on the
consolidated world-wide activities of all subsidiaries majority owned by the UBO. Select the industry code that best
reflects the consolidated world-wide sales of all subsidiaries majortiy owned by the UBO.
3023 11

Code "14" (holding company) is normally NOT a valid UBO industry code.
1070

BEA USE
ONLY
Remarks

FORM BE-15(LF) (REV. 9/2006)

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PART I — IDENTIFICATION OF U.S. AFFILIATE — Continued
19. Major activity of 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.
CHECK ALL BOXES THAT DESCRIBE A MAJOR ACTIVITY
OF THE FULLY CONSOLIDATED U.S. AFFILIATE
Producer
of goods

Seller of goods
the U.S. affiliate
does not produce

1072
1

Producer or
distributor
of information
1

Provider of
services
1

Real estate
1

Other
1

– Specify

20. 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.,
whether it is mined, manufactured, sold at wholesale, transported, packaged, etc. (For example, "manufacture widgets.")
1163

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 and employment associated with each code. For a full explanation of each
code, see the Guide to Industry and Foreign Trade Classifications for International Surveys, 2002. A copy of this guide can be found
on our web site at: www.bea.gov/bea/surveys/2002be799print.pdf
If you use fewer than ten codes, you must account for total sales in items 21 through 29. 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).
Total 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, but EXCLUDE gains or losses from DISPOSALS of discontinued operations. Report such gains or losses on page 9, item 57.
Dividends, interest, and investment gains (losses) – INCLUDE dividends and interest earned ONLY by finance and insurance
companies and units. EXCLUDE dividends and interest earned by non-finance and non-insurance companies and units. Non-finance
and non-insurance companies and units should report dividends and interest as other income (page 9, item 58). EXCLUDE all
investment gains and losses. Report all investment gains and losses as certain realized and unrealized gains (losses) (page 9, item 57).
Holding companies (ISI code 5512) must show total income as reported in item 59 on page 9. Note – A U.S. affiliate that is a
conglomerate must determine its industry code based on the activities of the fully consolidated domestic U.S. business enterprise.
The "holding company" classification, therefore, is often an invalid industry classification for a conglomerate.
Derivative instruments – EXCLUDE all gains and losses from derivative instruments. Report gains and losses from derivative
instruments as certain realized and unrealized gains and losses (page 9, item 57).
Book publishers, printers, and Real Estate Investment Trusts – See instructions for items 21–34 on page 25.
Employment – Include in column (3) all employees, including part-time employees, on the payroll at the end of FY 2006,
associated with each code. (For employees engaged in manufacturing activities, also see the instructions for column (4) of the state
schedule located on page 14). A count taken at some other date during the reporting period may be given provided it is a
reasonable estimate of the number on the payroll at the end of the fiscal year that ended in calendar year 2006. Reporting
employment (including how to report when employment is subject to unusual variations) is discussed in more detail on page 14.

ISI code

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 in proportion to sales by industry.

Number of employees
engaged in activities
encompassed in each
industry code in
column (1)
(3)

Sales
(2)

(1)

Bil.

21. Enter code with largest sales

1164

22. Enter code with 2nd largest sales

1165

23. Enter code with 3rd largest sales

1166

24. Enter code with 4th largest sales

1167

25. Enter code with 5th largest sales

1168

26. Enter code with 6th largest sales

1169

27. Enter code with 7th largest sales

1170

28. Enter code with 8th largest sales

1171

29. Enter code with 9th largest sales

1176

30. Enter code with 10th largest sales

1177

Mil. Thous. Dols.
3

2
$
2

31. Number of employees of administrative offices and 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 (e.g., a manufacturing plant
or warehouse) that provide administration and management or support
services to more than one U.S. operating unit. Exclude employees
located at a U.S. operating unit that provide administration and
management or support services for only that unit. Instead, report such
employees in column (3) of items 21 through 30 where the industry(ies)
of the operating unit(s) is(are) reported in column (1).

1178

32. Sales and employees accounted for — Sum of items 21 through 31

1172

33. Sales and employees not accounted for above — Item 30 must
have an entry if amounts are entered on this line.
34. TOTAL SALES OR GROSS OPERATING REVENUES (excluding
sales taxes) AND EMPLOYEES — Sum of items 32 and 33,
columns (2) and (3) (Total sales must equal item 55 and also
item 72. Total employees must equal item 107 column 3.)

1173
1

1174

BEA USE ONLY
1200 1

1201 1

1202 1

1203 1

FORM BE-15(LF) (REV. 9/2006)

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PART I — IDENTIFICATION OF U.S. AFFILIATE – Continued
35.

Percentage of e-commerce sales — Of the total sales reported
on page 6, line 34 column 2, approximately what percentage
(rounded to the nearest whole number from 0 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 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.

1179

Please check box
if percentage of
% e-commerce sales
is zero.

INSURANCE INDUSTRY CODES 5243 AND 5249 — Premiums earned, certain policy fees, and losses incurred
Insurance related activities are covered by industry codes 5243 (Insurance carriers, except life insurance
carriers) and 5249 (life insurance carriers).
36a. Of the total sales and gross operating revenues reported on line 34, column 2, were
any of the sales or revenues generated by insurance related activities?
1
1180
1

1
2

Yes – Answer items 36b and 36c
No – Skip to item 37a

Amount
(1)

NOTE: Complete items 36b and 36c ONLY if item 36a is answered "Yes."

Bil.

Mil.

Thous. Dols.

36b. Premiums earned — Report premiums, gross of commissions, included in revenue during
the reporting year. Calculate as direct premiums written (including renewals) net of
cancellations, plus reinsurance premiums assumed, minus reinsurance premiums ceded,
plus unearned premiums at the beginning of the year, minus unearned premiums at the end
of the year. EXCLUDE all annuity premiums. Also EXCLUDE premiums and policy fees
related to universal and adjustable life, variable and interest-sensitive life, and
variable-universal life polices.

1181

$
1

36c. Losses incurred — Report losses incurred for the insurance products covered by question
36b. EXCLUDE loss adjustment expenses and losses that relate to annuities. Also EXCLUDE
losses related to universal and adjustable life, variable and interest-sensitive life, and
variable-universal life policies.
For property and casualty insurance, calculate as net losses paid during the reporting year,
minus net unpaid losses at the beginning of the year, plus net unpaid losses at the end of the
year. In the calculation of net losses, include losses on reinsurance assumed from other
companies and exclude losses on reinsurance ceded to other companies. Unpaid losses
include both case reserves and losses incurred but not reported.
For life insurance, losses reflect policy claims on reinsurance assumed or on primary
insurance sold, minus losses recovered from reinsurance ceded, adjusted for changes in
claims due, unpaid, and in course of settlement.

1182 $

WHOLESALE AND RETAIL TRADE INDUSTRY ACTIVITIES — Goods purchased for
resale without further processing
Wholesale trade industry activities include the wholesale trade of durable goods and
nondurable goods. These activities are covered by industry codes 4231 through 4251.
Retail trade industry activities are covered by industry codes 4410 through 4540.
37a. Of the total sales and gross operating revenues reported on line 34, column 2, were any
of the sales or revenues generated by wholesale or retail trade activities?
1
1183
1

1
2

Yes – Answer items 37b and 37c
No – Skip to item 38

Amount
(1)

NOTE: Complete items 37b and 37c ONLY if item 37a is answered "Yes."

Bil.

Mil.

Thous. Dols.

37b. Enter the cost of goods purchased for resale without further processing during
the fiscal year that ended in calendar year 2006

1184

BALANCES
Close FY 2005
(Unrestated)

CLOSE FY 2006
(1)
Bil.

37c. Enter the closing balances at the end of fiscal years 2006 and 2005 of
the inventory of goods purchased for resale without further
processing.
1185
Remarks

FORM BE-15(LF) (REV. 9/2006)

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Mil.

(2)
Thous. Dols.

Bil.

Mil.

Thous. Dols.

PART II — FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE
Report all amounts in thousands of U.S. dollars.
Section A — BALANCE SHEET
NOTE — Disaggregate all asset and liability items in the detail shown. Show receivables
and payables between the U.S. affiliate and the foreign parent(s) and foreign affiliates of
BALANCES
the foreign parent(s) in the proper asset and liability accounts of the U.S. affiliate rather
than as a net amount. Also show receivables and payables between the U.S. affiliate and
Close FY 2005
foreign affiliates owned by this U.S. affiliate. Insurance companies see page 27, V.A., for
Close FY 2006
(Unrestated)
special instructions.
(1)
(2)
• ASSETS
Dols.
Bil.
Mil. Thous.
Bil.
Mil. Thous. Dols.
38. Cash items — Deposits in financial institutions and other cash items. Do NOT include
1
2
overdrafts as negative cash. Note — Although including certificates of deposit (CDs)
in CASH is permitted by generally accepted accounting principles, exclude CDs and
other deposits of the U.S. affiliate held by the foreign parent(s) or foreign affiliates of
$
the foreign parent(s). Include them below in item 39a, current receivables.
2101 $
1
2
39a. Current receivables (gross amount before allowance for doubtful accounts) —
Trade accounts, trade notes, and other current receivables. Include CDs and other
deposits held by the foreign parent(s) or foreign affiliates of the foreign parent(s). (See
note in item 38 above.)
2102
1
2
39b. Allowance for Doubtful Accounts — Include doubtful current receivable amounts
reported in item 39a plus any doubtful noncurrent receivable amounts reported in
)
(
)
item 44 (other noncurrent assets).
2103 (
1
2
40. Inventories — Land development companies, exclude land held for resale
(include in item 41); finance and insurance companies, exclude inventories of
2104
marketable securities (include in item 41 or item 44, as appropriate).
1
2
41. Other current assets, including land held for
2105
resale and current marketable securities.
42. Equity investment in unconsolidated U.S. affiliates and all foreign entities —
Include all U.S. and foreign investments that are to be reported on the equity basis.
Include equity in undistributed earnings since acquisition. Note: Foreign operations
in which you own an interest of at least 20 percent, including those in which you
2
1
own a majority interest, are to be deconsolidated and reported using the equity
method of accounting. For U.S. and foreign affiliates owned less than 20 percent and
not subject to FAS 115, report at cost.
2106
43. Property, plant, and equipment, net — Include land, timber, mineral
rights, structures, machinery, equipment, special tools, deposit containers,
construction in progress, and capitalized 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
1
2
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. (An 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
44. Other noncurrent assets — Include noncurrent receivables; other investments;
intangible assets not included in item 43 above, net of amortization; and all
noncurrent assets not included above. — Specify major items
2108

TOTAL ASSETS — Sum of items 38 through 44
• LIABILITIES
Current liabilities and long-term debt — Trade accounts, trade
notes, other current liabilities, long-term debt, and securities that are
debt per FAS 150.
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

45.
46.
47.

2109 $

2111 $

2113

TOTAL LIABILITIES — Sum of items 46 and 47
• OWNERS’ EQUITY
Capital stock and additional paid-in capital — Common and preferred,
voting and non-voting capital stock and additional paid-in capital.

48.
49.

2114 $

2116 $

50.

Retained earnings (deficit)

2117

51.

Treasury stock

2118

52.

(1)
Bil.
1

52a. Translation adjustment
52b. All other components

2122

2128

Mil.

(

(2)
Thous. Dols.

Bil.

Mil.

Thous. Dols.

52c. Total accumulated other comprehensive income (loss) —
Equals sum of 52a. and 52b.
53.

)

Close FY 2005
(Unrestated)

Close FY 2006

Accumulated other
comprehensive income (loss)

(

2120 $

2129

Other — Specify major items
2119

54.

TOTAL OWNERS’ EQUITY (INCORPORATED OR UNINCORPORATED U.S.
AFFILIATE) — Sum of items 49, 50, 51, 52c and 53 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 49 through 53, report total owners’ equity in this item. For
both incorporated and unincorporated U.S. affiliates, total owners’ equity must
equal item 45 minus item 48.

FORM BE-15(LF) (REV. 9/2006)

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)

PART II — FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE – Continued
Report all amounts in thousands of U.S. dollars.
Amount

Section B — INCOME STATEMENT
Insurance companies see page 27 V.A. for special instructions.

(1)
Bil.

• INCOME
1
55. Sales or gross operating revenues, excluding sales taxes — Item 55 must equal item 34, column 2 and
also item 72.
2149 $
1
56. Income from equity investments in unconsolidated U.S. affiliates and all foreign entities — Report
equity in earnings during the reporting period for all U.S. and foreign investments included on the equity basis
2150
on line 42. For investments owned less than 20 percent and not subject to FAS 115, report divends received.
57. Certain realized and unrealized gains (losses) — Note: Please read the following instructions carefully as they
are keyed to economic accounting concepts and in some cases may deviate from what is normally required by U.S.
Generally Accepted Accounting Principles.
Report at gross amount before income tax effect. Include tax effect in item 61 below. Report
gains (losses) resulting from:
a. Sales or other disposition of financial assets, including investment securities; and FAS 115 holding gains (losses)
on securities classified as trading securities; FAS 115 impairment losses; and gains and losses derived from
derivative instruments. Dealers in financial instruments (including securities, currencies, derivatives, and other
financial instruments) and finance and insurance companies, see special instructions on page 25;
b. Sales or disposition of land, other property, plant and equipment, or other assets, and FAS 144 impairment
losses. EXCLUDE 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 25;
c. Goodwill impairment as defined by FAS 142;
d. Restructuring. INCLUDE restructuring costs that reflect write downs or writeoffs of assets or liabilities. EXCLUDE
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. Report such items on line 60;
e. DISPOSALS of discontinued operations. EXCLUDE income from the operations of a discontinued segment.
Report such income as part of your income from operations in items 21 through 34;
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, writedowns, 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. EXCLUDE legal judgments. Report legal judgments against the
1
U.S. affiliate on line 60. Report legal settlements in favor of the U.S. affiliate on line 58.
h. The cumulative effect of a change in accounting principle.
i. Change in accounting estimate of provision for expected stock option forfeitures under the inception method
as defined by FAS 123.
2151 $
58. Other income — Legal settlements in favor of the U.S. affiliate, nonoperating, and other income not included
above. — Specify major items
1
2152

$
1

59. TOTAL INCOME — Sum of items 55 through 58

2153

• COSTS AND EXPENSES
60. Cost of goods sold or services rendered, and selling, general, and administrative expenses —
Operating expenses that relate to sales or gross operating revenues, item 55, and selling, general, and
administrative expenses. INCLUDE production royalty payments to governments, their subdivisions and
agencies, and to other persons. INCLUDE legal judgments against the U.S. affiliate. INCLUDE depletion charges
representing the amortization of the actual cost of capital assets, but EXCLUDE all other depletion charges.
EXCLUDE goodwill impairment as defined by FAS 142. Report such impairment losses on line 57 above. For
guidance on restructuring costs, see item 57d above.
61. Income taxes — Provision for U.S. Federal, State, and local incomes taxes. Include the income tax effect of
certain realized and unrealized gains (losses) reported on line 57. Exclude production royalty payments.
62. Other costs and expenses not included above, including underlying minority interest in profits and
losses that arise out of consolidation. — Specify major items

1
2154

2156

1
2157
1

63. TOTAL COSTS AND EXPENSES — Sum of items 60 through 62

2158

• NET INCOME
64. Net income (loss) after provision for U.S. Federal, State, and local income taxes — Item 59 minus
item 63
Section C — CHANGE IN RETAINED EARNINGS — If retained earnings is not shown as a
separate account, show change in total owners’ equity.
65. Balance, close FY ended in 2005 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 50, column (2); if retained earnings is not shown as a separate account,
enter amount from item 54, column (2).
66. Increase (decrease) due to restatement of FY 2005 closing balance. — Specify reason(s) for change

$
1

2159

1
2211

1
2212
1

67. FY 2005 closing balance as restated — Item 65 plus item 66.

2213

68. Net income (loss) — Enter amount from item 64.

2214

$
1

69. Dividends or earnings distributed — 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.
70. Other increases (decrease) in retained earnings, including stock or liquidating dividends, or in total
owners’ equity if retained earnings are not shown as a separate account, including capital
contributions (return of capital). — Specify

2215

1
2217

71. FY 2006 closing balance — Sum of items 67, 68, and 70 minus item 69; also must equal item 50 column (1)
if retained earnings is shown as a separate account, or item 54, column (1) if retained earnings is NOT shown
as a separate account.
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2218

Mil.

Thous. Dols.

PART II — 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 purpose of this distribution, "goods" are normally outputs that are tangible and "services" are normally
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.
NOTE — BEFORE COMPLETING THIS SECTION, PLEASE SEE THE INSTRUCTIONS FOR ITEMS 72 THROUGH
79 STARTING ON PAGE 25. Insurance companies also see page 25 V.A. for special instructions.

Amount
(1)
Bil.

Mil.

Thous. Dols.

Utilities and Oil & Gas Producers and Distributors — To the extent feasible, revenues are to be allocated
between sales of goods and sales of services. Revenues earned from the sale of product (e.g., electricity, natural gas,
oil, water, etc.) are to be reported as sales of goods. Revenues earned from the distribution or transmission of
product (e.g., fees received for the use of transmission lines, pipelines, etc.) are to be reported as sales of services.
1

72. TOTAL SALES OR GROSS OPERATING REVENUES, EXCLUDING SALES TAXES —
Equals item 55, and also sum of items 73 through 75

2243

$
1

73. Sales of Goods

2244

74. Investment income included in gross operating revenues (e.g., dividends and interest generated by
finance and insurance subsidiaries or units)

2245

75. Sales of Services, Total — Sum of items 76 through 79

2246

$
1

76.

To U.S. persons

77.

To foreign parent(s) and foreign affiliates of the foreign parent(s) of this U.S. affiliate. S e e
items II, L., M., and N. on page 23 for definitions of foreign parent and foreign affiliates of foreign parent.

2248

To foreign affiliates owned by this U.S. affiliate

2249

2247
1

78.

1
1

79.

To other foreign persons

2250

Amount for all
employees

Section E — EMPLOYEE COMPENSATION

(1)

EMPLOYEE COMPENSATION — Base compensation on payroll records. Employee compensation
must cover compensation charged as an expense on the income statement, charged to inventories, or
capitalized during the reporting period. EXCLUDE compensation related to activities of a prior period,
such as compensation capitalized or charged to inventories in prior periods. See instructions 80–82 on
page 26 for more detailed definitions of wages and salaries and employee benefit plans.

Bil.

Mil.

Thous. Dols.

80. Wages and salaries — Employees’ gross earnings (before payroll deductions), and all direct and
in-kind payments by the employer to employees.

2251

$
1

81. Employee benefit plans — Employer expenditures for all employee benefit plans, including those
required by government statute, such as employer’s Social Security taxes, those resulting from
collective bargaining contracts, and those that are voluntary.

2252
1

82.

TOTAL EMPLOYEE COMPENSATION — Sum of items 80 and 81
Section F – COMPOSITION OF
EXTERNAL FINANCES OF U.S.
AFFILIATE

Total
Equals sum of columns
(2)–(4)

2253

With foreign parent(s)
and foreign affiliates of
the foreign parent(s)

(1)

CLOSE FY 2006

Bil.

Mil.

83. Current liabilities and long-term
debt – Column (1) must equal
2254 $
item 46, column (1).
1
84. Current and noncurrent
receivables — Column (1) must
equal item 39a, column (1), and that
part of item 44, column (1), that is
noncurrent receivables.
NOTE — Include certificates of deposit
and other deposits held by the foreign
parent(s) or foreign affiliates of the
foreign parent(s) that would otherwise
be included in cash, item 38. (See
Note in item 38.)
2256 $

With other foreign persons,
including foreign affiliates
owned by this U.S. affiliate

(2)

Thous. Dols. Bil.

Mil.

With U.S. persons

(3)

Thous. Dols. Bil.

Mil.

(4)

Thous. Dols. Bil.

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 with the intent of holding and actively using the
asset in the operating activity of the business. Land refers to any part of the earth’s surface. Include land being
leased from others under capital leases. 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; capitalized tangible and intangible exploration and development costs, and the
capitalized value of timber, mineral, and like rights leased by the affiliate from others under capital leases. These
items may be carried in property, plant, and equipment (item 43), in other noncurrent assets (item 44), or in other
current assets (item 41).

Mil.

Thous. Dols.

Gross book value of all
land and other property,
plant, and equipment at
historical cost
(Include mineral rights)
(2)
Bil. Mil. Thous. Dols.
2

Exclude items that the affiliate has sold on a capital lease basis.
85. TOTAL LAND AND OTHER PROPERTY, PLANT, AND EQUIPMENT AT CLOSE OF FY 2006 —
Must equal item 97 and item 107 column (5)

2354

Amount
86. Gross book value of land owned — The portion of item 85, that is the gross book value of land owned. Include
undeveloped and agricultural land, and also the value of land you own that is located under developed properties
Bil.
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 1
estimate of the gross book value of the land owned.
2356 $
FORM BE-15(LF) (REV. 9/2006)

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(1)
Mil.

Thous. Dols.

PART II — FINANCIAL 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 2005 CLOSING BALANCES
TO FY 2006 CLOSING BALANCES

Amount
(1)
Bil. Mil. Thous. Dols.

• BALANCES AT CLOSE FY 2005, BEFORE RESTATEMENT DUE TO A CHANGE IN THE ENTITY

87. Net book value of all land and other property, plant, and equipment, wherever carried on
the balance sheet
2386 $
• CHANGES DURING FY 2006
88. Give amount by which the net book value in item 87 would be restated due to a change in
entity (i.e., due to the acquisition of or merger with another company, or the divestiture of a
1
subsidiary, etc.), if the answer to item 5, 10, or 11 was "Yes," or due to a change in
accounting methods or principles. If a decrease, put amount in parentheses. Report in item 57 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 purchases 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
caused by a change in the entity (i.e., due to the acquisition of or merger with another company, etc.) or
by a change in accounting methods or principles during your 2006 fiscal year; include such changes in
item 88 above.
1
Expenditures by the U.S. affiliate for, or transfers into the U.S. affiliate of,
89.
Land – Report expenditures for land except land held for resale.
2388
Report land held for resale in item 92.
90.

91.
92.

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 items in 91 or 92.
Plant, equipment, and property other than land and mineral rights
(Exclude changes due to mergers and acquisitions. Report them in item 88.)
91. New
If it is burdensome to report separate amounts for new and used plant and
equipment, etc., then report material amounts for used items in 92 and
92. Used
amounts for new items and immaterial used items in 91.

2389
1
2390
1
2391
1

93. Depreciation and depletion

2392

94. Net book value of sales, retirements, impairments or transfers out of assets defined for
inclusion in this section, and other decreases (increases) — Report amounts relating to the
divestiture of U.S. affiliates in item 88. Include in item 57 any gains (losses) resulting from the sale
or disposition of property, plant, and equipment. — Specify major items
1
2394

• BALANCES AT CLOSE FY 2006
95. Net book value — Sum of items 87 through 92, minus sum of items 93 and 94.

1
2395
1

96. Accumulated depreciation and depletion.

2396

97. Gross book value of all land and other property, plant, and equipment, wherever carried on
the balance sheet — Sum of items 95 and 96; must also equal item 85 and item 107, column (5).
• ADDENDUM
98. Expensed petroleum and mining exploration and development expenditures — Include
expensed expenditures to acquire or lease mineral rights. Exclude expenditures that are
capitalized and 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.

1
2397

$
1

2398

$
Amount
(1)

Section H — INTEREST AND TAXES

Bil. Mil. Thous. Dols.

99. 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 100.)
100. Interest expense plus interest capitalized, paid or due to all payees (including to
foreign parents and affiliates), before deduction of U.S. tax withheld by the
affiliate. Do not net against interest income (item 99.)
101. Other taxes and non-tax payments (EXCLUDING income and payroll taxes) — 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
• Premium taxes paid by insurance companies
• 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,
overhead — whether or not allocated to others — and all other indirect costs. See instructions
102–103 on page 26 for more details of what to include on this line.
102. R&D performed BY the U.S. affiliate — Exclude the cost of R&D funded by the U.S.
affiliate but performed by others.
103. Research and development employees — All employees engaged in R&D, including
managers, scientists, engineers, and other professional and technical employees. See
instructions 102–103 on page 26 for details of what to include on this line.
BEA USE
ONLY
FORM BE-15(LF) (REV. 9/2006)

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1
2400

$
1

2401

2402

2403

Number
(1)
1
2409

2404

2410

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PART II — 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 see discussion below under packaged general use computer software)
IMPORTANT NOTES — Report U.S. trade in goods during
the fiscal year that ended in calendar year 2006. Report
exports and imports of all goods that physically left or
entered the U.S. customs area. Report amounts 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 amounts 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.

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., including both the value of the media
on which the software is recorded and the value of the
information contained on the media. Exclude receipts or
payments for customized software designed to meet the
needs of a specific user. This type of software is considered a
service and should not be reported as trade in goods.
Exclude receipts and payments for software that is
transmitted electronically rather than physically shipped. Also
exclude negotiated licensing fees for software to use on
networks.

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. However, if there is a material
difference, the "shipped" basis must be used or adjustments
made to the amounts on a "charged" basis to approximate a
"shipped" basis.
Consigned goods — 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.

Natural gas distribution — Include the value of natural gas
that is exported or imported as trade in goods. However,
exclude natural gas that you do not produce or sell at
wholesale, but simply transmit for others via a pipeline.

Capital goods — Include capital goods (e.g., manufacturing
equipment to be used to produce goods for sale) but exclude
the value of ships, planes, railroad rolling stock, and trucks
that were temporarily outside the United States transporting
people or merchandise.

Electricity and water — Report the value of electricity and
water exports and imports if the product value can be
separated out from the service value. Report ONLY the
product value (electricity and water). DO NOT report the
service value (transmission and distribution).

In-transit goods – Exclude 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

Additional instructions for exports and imports are on
page 24.
Shipped to (by)
foreign parent(s) and
its (their) foreign
affiliates

TOTAL
(1)
Bil. Mil. Thous.
104. Exports of U.S. affiliate to
foreign persons — Shipped by
U.S. affiliate to foreign persons
(valued f.a.s. U.S. port).
105. Imports of U.S. affiliate from
foreign persons — Shipped to
U.S. affiliate by foreign persons
(valued f.a.s. foreign port).

2502

2515

(3)

(2)
Dols.

Bil. Mil. Thous.

Dols.

Base prints black

Bil. Mil. Thous.
3

(4)
Dols.

Bil. Mil.

Thous.

1
2530

Please check box if "goods intended for further
processing assembly, or manufacture" are zero.

Remarks

FORM BE-15(LF) (REV. 9/2006)

Shipped to (by) all
other foreign persons

BY INTENDED USE:
106. The portion of item 105,
column 1, that is imports of
goods intended for further
processing, assembly, or
manufacture by this U.S.
affiliate before resale to
others.

Shipped to (by)
foreign affiliates
owned by this U.S.
affiliate

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Dols.

REMARKS – Please use this space for any explanation that may be essential in understanding your reported data.

FORM BE-15(LF) (REV. 9/2006)

Page 13

PART II — FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE — Continued
Section K — SCHEDULE OF EMPLOYMENT AND PROPERTY, PLANT, AND EQUIPMENT, BY LOCATION

Instructions for page 15
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 amounts pertaining to
those U.S. business enterprises that are fully consolidated into the reporting U.S. affiliate. Do not consolidate or include
amounts 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.
Example: An employee carried on the payroll of a company located in California who is on a duty assignment for one year
or less in Texas should be shown as being located in California, not Texas.
Exemption: If the duty assignment is for more than one year, show the employee as being located in Texas, not California.
In column (3), include all employees on the payroll at the end of the fiscal year that ended in calendar year 2005, including
part-time employees. A count taken at some other date during the reporting period may be given provided it is a
reasonable estimate of the number on the payroll at the end of the fiscal year.
Employment is the number of full-time and part-time employees on the payroll at the end of FY 2006, excluding contract
workers and other workers not carried on the payroll of this U.S. affiliate. If employment at the end of FY 2006 or the count
taken at some other time during FY 2006, 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 2006 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.
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 who serve only that plant. Exclude
employees on the payrolls of administrative offices or other auxiliary units reported on page 4, line 31, column 3.
In column (5), include land and other property, plant, and equipment, 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 leases from others, but exclude that on capital
leases 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 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 (such as water and sewage treatment, electric power
generation, and other utility plants), property you use to support these activities, such as research labs and warehouses,
and office buildings located at industrial sites. Also exclude educational buildings, hospitals, nursing homes, institutional
buildings, and all undeveloped land.
161. U.S. offshore oil and gas sites – Report offshore oil and gas sites located within U.S. claimed territorial waters.
For offshore oil and gas sites located outside U.S. claimed
territorial waters, see item 163e below.
163. Foreign – Except as noted below, do not include employees, land, and other property, plant, and equipment,
located outside of the United States on line 163 or elsewhere on the Schedule of Employment and Property, Plant,
and Equipment, By Location.
a. Employees normally located in the United States who are on a temporary duty assignment outside
of the country for one year or less should be reported in the U.S. state, territory, or possession
where they are normally located.
b. Employees normally located in the United States who are on a duty assignment outside of the country
for more than one year and carried on the payroll of the domestic U.S. affiliate should be reported on
line 163. Exclude these employees from the BE-15 report if they are carried on a foreign payroll.
c. Real estate located outside the United States that is owned by the U.S. affiliate and carried on its
books but which generates no revenues for, or reimbursements to, the U.S. affiliate should be
reported on line 163. Real estate located outside the United States that generates revenues for, or
reimbursements to, the U.S. affiliate, or that facilitates the foreign operations of the U.S. affiliate is a
foreign subsidiary and should not be consolidated on this BE-15 report.
d. Machinery and similar equipment located outside the United States that are owned by the domestic
U.S. affiliate and carried on its books should be reported on line 163. However, machinery or equipment that frequently switches locations, such as aircraft, railroad rolling stock, ships of U.S. registry,
or vehicles should be reported as "Other property, plant, and equipment" on line 164.
e. Use the "foreign" line to report oil and gas sites that (1) are owned by U.S. affiliates; (2) are located
outside of U.S. claimed territorial waters; (3) are not incorporated in a foreign country; (4) are not
organized as a branch; and (5) do not otherwise have a physical presence in a foreign country as
evidenced by plant and equipment or employees located in a foreign country.
f. Use the category "foreign" to report communication channels that physically exist (i.e., are tangible) that
are (1) located outside of the United States, (2) owned by the U.S. affiliate, and (3) carried directly on the
U.S. affiliate’s book (i.e., not carried on the books of a foreign affiliate owned by the U.S. affiliate).
164. Other property, plant, and equipment – Use this line to report (1) items that frequently switch locations such as
aircraft, railroad rolling stock, ships of U.S. registry, and vehicles engaged in interstate transportation, (2) items
such as pipelines, fiber optic cable, power lines, etc., located in more than one state that cannot be identified as
located in a specific state, (3) satellites, and undersea cable, and (4) property leased to others, except land or
buildings, under operating leases. Also, include here machinery and equipment that frequently switch locations,
located outside the United States, that are owned by the domestic U.S. affiliate, and carried on its books.

FORM BE-15(LF) (REV. 9/2006)

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FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE — Continued
Section K — SCHEDULE OF EMPLOYMENT AND PROPERTY, PLANT, AND EQUIPMENT, BY LOCATION

Please review the instructions on page 14.

LOCATION

107. TOTAL for each column
must equal sum of
items 108 through 164 2700
108. Alabama
109. Alaska

2701
2702

110. Arizona

2703

111. Arkansas
112. California

2704

113. Colorado
114. Connecticut
115. Delaware

2706

116. Florida

2709

117.
118.
119.
120.

Georgia
Hawaii
Idaho
Illinois

121. Indiana

2705

North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania

2708

2710

2713

2714

2711
2712

2716

2718
2719

2721

2722

2723
2724
2725
2726
2727
2728
2729
2730
2731
2732
2733
2734
2735
2736
2737
2738

2
2

2740

2742
2743
2744

152. Vermont
153. Virginia
154. Washington

2745

155. West Virginia

2748

2746
2747

2749
2750
2751
2752
2753

2
2

2
2
2
2
2
2
2
2
2
2

151. Utah

Base prints black

2707

2741

FORM BE-15(LF) (REV. 9/2006)

148. South Dakota
149. Tennessee

159. Puerto Rico
160. Virgin Islands
161. U.S. offshore oil and gas
sites – See instruction
161 on page 14.
162. Other U.S. areas – includes
Guam, American Samoa,
and all other territories
and possessions not
separately listed
163. Foreign – See instruction
163 on page 14.
164. Other property, plant and
equipment – See
instruction 164 on page 14.

2739

156. Wisconsin
157. Wyoming
158. District of Columbia

146. Rhode Island
147. South Carolina

150. Texas

2720

141.
142.
143.
144.
145.

127. Maryland
128. Massachusetts
129. Michigan

139. New York
140. North Carolina

2717

137. New Jersey
138. New Mexico

124. Kentucky
125. Louisiana
126. Maine

135. Nevada
136. New Hampshire

Bil.
6
$

The portion of column (5)
that is commercial property

2715

132. Missouri
133. Montana
134. Nebraska

(3)
Number

(2)

Gross book value (historical
cost) of all land and other
property, plant, and equipment
wherever carried on balance
sheet, FY 2006 closing balance.
Must equal item 85 and item 97
(5)
Bil.
Mil.
Thous.
5 $

122. Iowa
123. Kansas

130. Minnesota
131. Mississippi

The portion
of employees in
column (3) that
are
manufacturing
employees
(4)
Number

Number of
employees at the
end
of FY 2006 —
State
Total must equal
code
item 34, column (3).

2
2
2
2
2
2
2

34
35
36
37
38
39
40

44
45

48
49
51

2
2
2

11
43
52

2756
2

2754

2758
2
2759

71
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BE-15(LF), page 15, Pantone 199 Red, 10%

(6)
Mil.

Thous.

REMARKS – Please use this space for any explanation that may be essential in understanding your reported data.

FORM BE-15(LF) (REV. 9/2006)

Page 16

Page 17

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BUREAU OF ECONOMIC ANALYSIS

5133

5132

5131

5130

5129

5128

5127

5126

5125

5124

5123

5122

5121

5120

5119

5118

5117

5116

5115

5114

5113

5112

5111

(2)

(1)

Name of each U.S. affiliate consolidated (as represented in item 7, Part I)

BEA USE ONLY

–

(3)

Employer Identification Number used
by U.S. affiliate named in column (2) to
file income and payroll taxes

Supplement A must be completed by a reporting affiliate that consolidates financial and operating data of any other U.S. affiliate(s). The number of U.S. affiliates
listed below plus the reporting U.S. affiliate must agree with item 7, Part I of BE-15(LF). Continue listing onto as many additional copied pages as necessary.

NOTE – If you filed a Supplement A or a computer printout of Supplement A with your 2005 BE-15 report, in lieu of completing a new Supplement A,
you may substitute a copy of that Supplement A or computer printout updated to show any additions, deletions, or other changes.

LIST OF ALL U.S. AFFILIATES FULLY CONSOLIDATED INTO THE REPORTING U.S. AFFILIATE

BE-15(LF) Supplement A (2006)

FORM
(REV. 9/2006)

U.S. DEPARTMENT OF COMMERCE

BEA USE ONLY

(4)

Name of U.S. affiliate which holds the direct ownership
interest in the U.S. affiliate named in column (2)

5110 1

Page number

Primary Employer Identification Number as shown in item 3, Part I of BE-15(LF)

Name of U.S. affiliate as shown on page 1 of BE-15(LF)

Percentage of direct voting
ownership that the U.S. affiliate
named in column (4) holds in the U.S.
affiliate named in column (2). –
Enter percentage to nearest tenth.
(5)

–

OMB No. 0608-0034: Approval Expires xx/xx/xxxx

FORM BE-15(LF) (REV. 9/2006)

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5159

5158

5157

5156

5155

5154

5153

5152

5151

5150

5149

5148

5147

5146

5145

5144

5143

5142

5141

5140

5139

5138

5137

5136

5135

5134

(2)

(1)

Name of each U.S. affiliate consolidated (as represented in item 7, Part I)

BEA USE ONLY

–

(3)

Employer Identification Number used
by U.S. affiliate named in column (2) to
file income and payroll taxes

BE-15(LF) Supplement A (2006) – LIST OF ALL U.S. AFFILIATES FULLY CONSOLIDATED INTO THE REPORTING U.S. AFFILIATE – Continued

(4)

Name of U.S. affiliate which holds the direct ownership
interest in the U.S. affiliate named in column (2)

Page number

(5)

Percentage of direct voting
ownership that the U.S. affiliate
named in column (4) holds in the
U.S. affiliate named in column (2). –
Enter percentage to nearest tenth.

Page 19

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U.S. DEPARTMENT OF COMMERCE
BE-15(LF) Supplement B (2006)
BUREAU OF ECONOMIC ANALYSIS
LIST OF ALL U.S. AFFILIATES IN WHICH THE REPORTING AFFILIATE (AS CONSOLIDATED) HAS A DIRECT
OWNERSHIP INTEREST BUT WHICH ARE NOT FULLY CONSOLIDATED

6221

6220

6219

6218

6217

6216

6215

6214

6213

6212

6211

(2)

(1)

Name of each U.S. affiliate in which a direct interest
is held but that is not named in Supplement A

BEA USE ONLY

(3)

Yes
No
2

No
1

Yes
2

No
1

Yes
2

No
1

Yes
2

No
1

Yes
2

No
1

Yes
2

No
1

Yes
2

No
1

Yes

(4)

Has affiliate
been notified
of obligation to
file?
Mark (X) one

–

(5)

Employer Identification Number
used by U.S. affiliate named in
column (2) to file income and
payroll taxes

6210 1

Percentage of direct voting
ownership interest that the fully
consolidated U.S. affiliate named
on page 1 of this Form BE-15(LF),
holds in the U.S. affiliate named in
column (2) — Enter percentage to
nearest tenth.
(6)

–

OMB No. 0608-0034: Approval Expires xx/xx/xxxx
Page number

Primary Employer Identification Number as shown in item 3, Part I of BE-15(LF)

Name of U.S. affiliate as shown on page 1 of BE-15(LF)

Address of each U.S. affiliate named in column (2)
Give number, street, city, State, and ZIP Code

Supplement B must be completed by a reporting affiliate that files a Form BE-15(LF) and has a direct ownership interest in a U.S. affiliate(s) that is (are) not fully consolidated. The number of
U.S. affiliates listed below must agree with item 8, Part I, of Form BE-15(LF). Continue listing onto as many additional copied pages as necessary.

NOTE – If you filed a Supplement B or a computer printout of Supplement B with your 2005 BE-15 report, in lieu of completing a new Supplement B, you may
substitute a copy of that Supplement B or computer printout which has been updated to show any additions, deletions, or other changes.

FORM
(REV. 9/2006)

FORM BE-15(LF) (REV. 9/2006)

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BE-15(LF), page 20, Pantone 199 Red, 10%

6234

6233

6232

6231

6230

6229

6228

6227

6226

6225

6224

6223

6222

(2)

(1)

Name of each U.S. affiliate in which a direct interest
is held but that is not named in Supplement A

BEA USE ONLY

Form BE-15(LF) Supplement B (2006) – LIST OF U.S. AFFILIATES – Continued

(3)

Address of each U.S. affiliate named in column (2)
Give number, street, city, State, and ZIP Code

Yes
No
2

No
1

Yes
2

No
1

Yes
2

No
1

Yes
2

No
1

Yes
2

No
1

Yes
2

No
1

Yes
2

No
1

Yes

(4)

Has affiliate
been notified
of obligation to
file?
Mark (X) one

–

(5)

Employer Identification Number
used by U.S. affiliate named in
column (2) to file income and
payroll taxes

Page number

Percentage of direct voting ownership interest that the fully consolidated U.S. affiliate named on page 1
of this Form BE-15(LF), holds in the
U.S. affiliate named in column (2).–
Enter percentage to nearest tenth.
(6)

ANNUAL SURVEY OF FOREIGN DIRECT INVESTMENT IN THE UNITED STATES — 2006
FORM BE-15(LF) INSTRUCTIONS
NOTE: Instructions in section IV. are cross referenced by number to the items located on pages 1 to 20 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).
The publication in the Federal Register of the notice implementing
this survey is considered legal notice to covered U.S. business
enterprises of their obligation to report. Therefore, a response is
required from persons subject to the reporting requirements of the
BE-15 survey, whether or not they are contacted by BEA. Also, a
person contacted by BEA concerning their being subject to reporting,
either by sending them a report form or by written inquiry, must
respond in writing pursuant to section 806.4 of 15 CFR, Chapter VIII, or
must respond electronically using BEA’s Automated Survey
Transmission and Retrieval (ASTAR) system. This may be
accomplished by completing and submitting Form BE-15(LF),
BE-15(SF), BE-15(EZ), or BE-15 Supplement C, whichever is applicable,
by May 31, 2007.

A report is required even though the foreign person’s voting
interest in the U.S. business enterprise may have been established
or acquired during the reporting period.
Beneficial, not record, ownership is the basis of the reporting
criteria. Voting securities, voting stock, and voting interest all have
the same general meaning and are used interchangeably
throughout these instructions and the report forms.
Real estate – See instruction V.C. on page 27 for special reporting
requirements.
Airlines and ship operators – U.S. stations, ticket offices, and
terminal and port facilities of foreign airlines and ship operators
that provide services ONLY to the foreign airlines’ and ship
operators’ own operation are not required to report. Reports are
required when such enterprises produce significant revenues from
services provided to unaffiliated persons.
1. Which form to file – Please review the questions and flow
chart below to determine if your U.S. business is required to
file Form BE-15(LF).

I. REPORTING REQUIREMENTS
To determine which BE-15 report to file, read the following section and
section A.1. on this page and review the flow chart on page 22, OR
read the following section and sections A.2. through A.5. starting on
page 22.
A. Who must report – A BE-15 report is required for each nonbank
U.S. affiliate, i.e., for each U.S. business enterprise in which a
foreign person owned or controlled, directly or indirectly, 10 percent
or more of the voting securities if an incorporated U.S. business
enterprise, or an equivalent interest if an unincorporated U.S.
business enterprise, at the end of the business enterprise’s fiscal
year that ended in calendar year 2006. Small U.S. affiliates are
exempt from filing a Form BE-15(LF), BE-15(SF), or BE-15(EZ). To
determine if you are exempt, see I.B. on page 20. Exempt affiliates
must file Form BE-15 Supplement C. Following an initial filing, the
BE-15 Supplement C is not required annually from those nonbank
U.S. affiliates that meet the stated exemption criteria from year to
year.
Foreign ownership interest – All direct and indirect lines of
ownership held by a foreign person in a given U.S. business
enterprise must be summed to determine if the enterprise is a U.S.
affiliate of the foreign person for purposes of reporting.
Indirect ownership interest in a U.S. business enterprise is the
product of the direct ownership percentage of the foreign parent in the
first U.S. business enterprise in the ownership chain multiplied by that
first enterprise’s direct ownership percentage in the second U.S.
business enterprise multiplied by each succeeding direct ownership
percentage of each other intervening U.S. business enterprise in the
ownership chain between the foreign parent and the given U.S.
business enterprise.
Example: In the diagram below, foreign person A owns 100% of the
voting stock of U.S. affiliate B; U.S. affiliate B owns 50% of the
voting stock of U.S. affiliate C; and U.S. affiliate C owns 25% of
the voting stock of U.S. affiliate D. Therefore, U.S. affiliate B is 100%
directly owned by foreign person A; U.S. affiliate C is 50% indirectly
owned by foreign person A; and U.S. affiliate D is 12.5% indirectly
owned by foreign person A.

a. 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 2006 fiscal year? (See II.T.
on page 21 for fiscal year 2006 definition).
Yes – Continue with question b. NOTE: Your business
is hereinafter referred to as a "U.S. affiliate."
No – You are not required to file Form BE-15(LF). File
Form BE-15 Supplement C by May 31, 2007.
b. Is this U.S. affiliate a bank or bank holding company?
Yes – You are not required to file Form BE-15(LF). File
Form BE-15 Supplement C by May 31, 2007.
No – Continue with question c.
c. Were more than 50 percent of the voting rights in this U.S.
affiliate owned by another U.S. affiliate at the end of this
U.S. affiliate’s 2006 fiscal year.
Yes – Continue with question d.
No – Skip to question e.
d. Does either exception d or e to the consolidation
rules apply to you? (The consolidation rules are
found in instruction IV.2. starting on page 21.)
Yes – Continue with question e.
No – This U.S. affiliate must be consolidated on the
BE-15 report of the U.S. affiliate that owns it more than
50 percent. File Form BE-15 Supplement C by May 31,
2007, forward this survey packet to the U.S. affiliate that
owns this affiliate more than 50 percent, and have them
consolidate your data into their report.
e. 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 $30
million at the end of, or for, its 2006 fiscal year?
Yes – Continue with question f.
No – You are not required to file a Form BE-15(LF).
File Form BE-15 Supplement C by May 31, 2007.

Calculation of Foreign Ownership

Foreign person A

f. Did you receive a request in writing from BEA to file Form
BE-15(EZ)?

Foreign
U.S.

Yes – File Form BE-15(EZ) by May 31, 2007.
100%

No – Continue with question g.

U.S. affiliate B
100% directly owned by foreign person A

g. Was the U.S. affiliate majority-owned by its foreign
parents at the end of its 2006 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.)

50%
U.S. affiliate C
100% x 50% = 50%
indirectly owned by foreign person A

Yes – Continue with question h.
No – File Form BE-15(SF) by May 31, 2007.
h. 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 2006 fiscal year?

25%
U.S. affiliate D
100% x 50% x 25% = 12.5%
indirectly owned by foreign person A

BE-15(LF) (REV. 9/2006)

Yes – File Form BE-15(LF) by May 31, 2007.
No – File Form BE-15(SF) by May 31, 2007.

Page 21

a. It is not a bank (Banks and Bank Holding Companies are
exempt from filing), and

I. REPORTING REQUIREMENTS – Continued
Which Form to File?

b. The ownership or control (both direct and indirect) by all
foreign parents in the voting securities of an incorporated
U.S. business enterprise (or an equivalent interest of an
unincorporated U.S. business enterprise) at the end of the fiscal
year that ended in calendar year 2006, exceeded 50 percent
(i.e., the voting securities or equivalent interest were majority
owned by foreign parents), and
c. On a fully consolidated, or, in the case of real estate investments, an aggregated basis, any one of the following three
items – Total assets (do not net out liabilities), or Sales or
gross operating revenues, excluding sales taxes, or Net
income after provision for U.S. income taxes – for the U.S.
affiliate (not just the foreign parent’s share) exceeded $125
million (positive or negative) at the end of, or for, its fiscal
year that ended in calendar year 2006.

At least 10 percent voting interest directly
and/or indirectly owned by a foreign person?
Yes

Bank or bank
holding company?

File Form BE-15
Supplement C

Yes

File Form BE-15
Supplement C.

More than 50 percent of the
voting rights owned by
another U.S. affiliate
at end of fiscal year 2006?
Yes

3. Form BE-15(SF) – Annual Survey of Foreign Direct
Investment in the United States – 2006 (Short Form)
A Form BE-15(SF) must be completed and filed by May 31, 2007, by
each U.S. business enterprise that was a U.S. affiliate of a foreign
person at the end of its fiscal year that ended in calendar year
2006, if:
a. It is not a bank (Banks and Bank Holding Companies are
exempt from filing), and
No

b. On a fully consolidated, or, in the case of real estate investments,
an aggregated basis, any one of the following three items –
Total assets (do not net out liabilities), or Sales or gross operating
revenues, excluding sales taxes, or Net income after provision for
U.S. income taxes – for the U.S. affiliate (not just the foreign
parent’s share) exceeded $30 million (positive or negative) at the
end of, or for, its fiscal year that ended in calendar year 2006, and
EITHER c. OR d. below is applicable.

Does either exception d or e to the
consolidation rules apply?
(The consolidation rules are found
in instruction IV.2. starting on page 21.)

Yes

c. The ownership or control (both direct and indirect) by all
foreign parents in the voting securities of an incorporated
U.S. business enterprise (or an equivalent interest in an
unincorporated U.S. business enterprise) at the end of the fiscal
year that ended in calendar year 2006, was 50 percent or less
(i.e., the voting securities, or equivalent interest were not
majority owned by foreign parents), or

This U.S. affiliate must be consolidated
on the BE-15 report of the U.S. affiliate
that owns it more than 50 percent. File
Form BE-15 Supplement C.

d. The ownership or control (both direct and indirect) by all
foreign parents in the voting securities of an incorporated
U.S. business enterprise (or an equivalent interest of an
unincorporated U.S. business enterprise) at the end of the fiscal
year that ended in calendar year 2006, exceeded 50 percent
(i.e., the voting securities or equivalent interest were majority
owned by foreign parents), and on a fully consolidated, or, in
the case of real estate investments, on an aggregated basis, no
one of the following three items – Total assets (do not net out
liabilities), or Sales or gross operating revenues, excluding
sales taxes, or Net income after provision for U.S. income
taxes – for the U.S. affiliate (not just the foreign parent’s share)
exceeded $125 million (positive or negative) at the end of, or
for, its fiscal year that ended in calendar year 2006.

Assets, sales, or net income (loss)
greater than $30 million?

Yes

4. Form BE-15 Supplement C – Annual Survey of Foreign
Direct Investment in the United States 2006, Claim for
Exemption from Filing Form BE-15(LF), BE-15(SF), or
BE-15(EZ).
A Form BE-15 Supplement C must be completed and filed no
later than May 31, 2007 by

File Form BE-15
Supplement C

Did you receive a request
in writing from BEA to
file Form BE-15(EZ)?

Yes

File Form
BE-15(EZ)

Majority-owned directly and/or
indirectly by foreign parents?

Yes

b. Each U.S. business enterprise that is contacted in writing
by BEA concerning its being subject to reporting in the
2006 annual survey but that is not required to file the
Form BE-15(LF), BE-15(SF), or BE-15(EZ).
5. Form BE-15(EZ) – Annual Survey of Foreign Direct
Investment in the United States – 2006 (EZ Form).
Complete Form BE-15(EZ) ONLY if you have been instructed to
do so by BEA.

File Form
BE-15(SF)

Assets, sales, or net income
(loss) greater than $125 million?

Yes

File Form
BE-15(LF).

File Form
BE-15(SF).

2. Form BE-15(LF) – Annual Survey of Foreign Direct
Investment in the United States – 2006 (Long Form)
A Form BE-15(LF) must be completed and filed by May 31,
2007, by each U.S. business enterprise that was a U.S. affiliate
of a foreign person at the end of its fiscal year that ended in
calendar year 2006, if:

BE-15(LF) (REV. 9/2006)

a. Each U.S. business enterprise that was a U.S. affiliate of a
foreign person at the end of its fiscal year that ended in
calendar year 2006 (whether or not the U.S. affiliate is
contacted by BEA concerning its being subject to reporting in
the 2006 annual survey), but is exempt from filing Form
BE-15(LF), BE-15(SF), and BE-15(EZ) (see I.B., below); and

B. Exemption – A U.S. affiliate as consolidated, or aggregated in the
case of real estate investments (see I.C. below and V.C. on
page 25), is not required to file a Form BE-15(LF), BE-15(SF), or
BE-15(EZ) if each of the following three items – Total assets(do
not net out liabilities), and Sales or gross operating revenues,
excluding sales taxes, and Net income after provision for U.S.
income taxes – for the U.S. affiliate (not just the foreign parent’s
share) did not exceed $30 million (positive or negative) at the end
of, or for, its fiscal year that ended in calendar year 2006.
If a U.S. business enterprise is a U.S. affiliate but is not required
to file a Form BE-15(LF), BE-15(SF), or BE-15(EZ), because it falls
below the exemption level, then it must file a Form BE-15
Supplement C, Claim for Exemption from Filing Form BE-15(LF),
BE-15(SF), or BE-15(EZ), with item 1 marked and the information
requested in item 1 filled in.
C. Aggregation of real estate investments – Aggregate all real
estate investments of a foreign person for the purpose of applying
the reporting criteria. Use a single report form to report the
aggregate holdings, unless BEA has granted permission to do
otherwise. Those holdings not aggregated must be reported
separately. Real estate is discussed more fully in instruction V.C.
on page 27.

Page 22

II. DEFINITIONS
A. United States, when used in a geographic sense, means the
several States, the District of Columbia, the Commonwealth of
Puerto Rico, and all territories and possessions of the
United States.
B. Foreign, when used in a geographic sense, means that which is
situated outside the United States or which belongs to or is
characteristic of a country other than the United States.
C. Person, means any individual, branch, partnership, association,
associated group, estate, trust, corporation, or other organization
(whether or not organized under the laws of any State), and any
government (including a foreign government, the U.S.
Government, a State or local government, and any agency,
corporation, financial institution, or other entity or instrumentality
thereof, including a government sponsored agency).
D. Associated group means two or more persons who, by the
appearance of their actions, by agreement, or by an
understanding, exercise their voting privileges in a concerted
manner to influence the management of a business enterprise.
The following are deemed to be associated groups:
1. Members of the same family.
2. A business enterprise and one or more of its officers
or directors
3. Members of a syndicate or joint venture
4. A corporation and its domestic subsidiaries.
E. Foreign person means any person resident outside the United
States or subject to the jurisdiction of a country other than the
United States.
F. Direct investment means the ownership or control, directly or
indirectly, by one person of 10 percent or more of the voting
securities of an incorporated business enterprise or an
equivalent interest in an unincorporated business enterprise.
G. Foreign direct investment in the United States means the
ownership or control, directly or indirectly, by one foreign
person of 10 percent or more of the voting securities of an
incorporated U.S. business enterprise or an equivalent interest in
an unincorporated U.S. business enterprise, including a branch.
H. Business enterprise means any organization, association,
branch, or venture which exists for profit making purposes or to
otherwise secure economic advantage, and any ownership of
any real estate.
I. Branch means the operations or activities conducted by a person
in a different location in its own name rather than through an
incorporated entity.

1. Majority-owned U.S. affiliate means a U.S. affiliate in
which the combined direct and indirect voting interest of all
foreign parents of the U.S. affiliate exceeds 50 percent.

2. Operating lease – Generally, a lease with a term which is less
than the useful life of the asset and a transfer of ownership is
not contemplated.
T. U.S. affiliate’s 2006 fiscal year is the affiliate’s financial reporting
year that had an ending date in calendar year 2006.
III. GENERAL INSTRUCTIONS
A. Accounting methods and records – Follow U.S. Generally
Accepted Accounting Principles (U.S. GAAP) when preparing the
BE-15 report except where asked to deviate from U.S. GAAP by a
specific instruction. Prepare reports for unincorporated U.S.
business enterprises on an equivalent basis.
B. Changes in the reporting entity – DO NOT restate close fiscal
year 2005 balances for changes in the consolidated reporting
entity that occurred during fiscal year 2006. The close fiscal year
2005 balances should represent the reporting entity as it existed
at the close of fiscal year 2005.
C. Required information not available – Make all reasonable
efforts to obtain the information required for reporting. Answer
every question except where specifically exempt. Indicate when
only partial information is available.
D. Estimates – If actual figures are not available, please provide
estimates and label them as such. When items cannot be fully
subdivided as required, provide totals and an estimated breakdown
of the totals. Certain sections of the Form BE-15(LF) require data
that may not normally be maintained in a company’s customary
accounting records. Precise answers for these items may present
the respondent with a substantial burden beyond what is intended
by BEA. This may be especially true for:
• Part I, Items 21 thru 31 – Number of employees in each
industry of sales;
• Part II, Section D – Distribution of sales or gross operating
revenues, by whether the sales were goods, investment income, or
services, and the distribution of sales of services by transactor;
• Part II, Section J – Exports and imports of U.S. affiliate on a
shipped basis, and
• Part II, Section K – Data disaggregated by State.
Therefore, the answers in these sections may be reasonable
estimates based upon the informed judgment of persons in the
responding organization, sampling techniques, prorations based on
related data, etc. However, the estimating procedures used should
be consistently applied on all BEA surveys.
E. Specify – When "specify" is stated for certain items, provide the
type and dollar amount of the major items included in the data
provided.
F. Space on form insufficient – When space on a form is insufficient
to permit a full answer to any item, provide the required information
on supplementary sheets, appropriately labeled and referenced to
the item number on the form.

J. Affiliate means a business enterprise located in one country
which is directly or indirectly owned or controlled by a person of
another country to the extent of 10 percent or more of its voting
securities for an incorporated business enterprise or an
equivalent interest for an unincorporated business enterprise,
including a branch.
K. U.S. affiliate means an affiliate located in the United States in
which a foreign person has a direct investment.

1. Capital lease – A long-term lease under which a sale of the
asset is recognized at the inception of the lease. These may be
shown as lease contracts or accounts receivable on the lessor’s
books. The asset would not be considered as owned by the
lessor.

2. Minority-owned U.S. affiliate means a U.S. affiliate in
which the combined direct and indirect voting interest of all
foreign parents of the U.S. affiliate is 50 percent or less.
Foreign parent means the foreign person, or the first person
outside the United States in a foreign chain of ownership, which
has direct investment in a U.S. business enterprise, including a
branch.
Affiliated foreign group means (i) the foreign parent, (ii) any
foreign person, proceeding up the foreign parent’s ownership
chain, which owns more than 50 percent of the person below it
up to and including that person which is not owned more than
50 percent by another foreign person, and (iii) any foreign
person, proceeding down the ownership chain(s) of each of
these members, which is owned more than 50 percent by the
person above it.
Foreign affiliate of a foreign parent means, with reference to a
given U.S. affiliate, any member of the affiliated foreign group
owning the U.S. affiliate that is not a foreign parent of the U.S.
affiliate.
U.S. corporation means a business enterprise incorporated in
the United States.

IV. INSTRUCTIONS FOR SPECIFIC SECTIONS OF THE
REPORT FORM
NOTE: Instructions in section IV. are cross referenced by number to the
items located on pages 1 to 18 of this form.
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 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.

P. Intermediary means any agent, nominee, manager, custodian,
trust, or any person acting in a similar capacity.
Q. Ultimate beneficial owner (UBO) is that person, proceeding up
the ownership chain beginning with and including the foreign
parent, that is not more than 50 percent owned or controlled by
another person. (A person who creates a trust, proxy, power of
attorney, arrangement, or device with the purpose or effect of
divesting such owner of the ownership of an equity interest as part
of a plan or scheme to avoid reporting information, is deemed to
be the owner of the equity interest.) Note: Stockholders of a closely
or privately held corporation are normally considered to be an
associated group and may be a UBO.
R. Banking covers business enterprises engaged in deposit banking
or closely related functions, including commercial banks, Edge Act
corporations engaged in international or foreign banking, foreign
branches and agencies of U.S. banks whether or not they accept
deposits abroad, U.S. branches and agencies of foreign banks
whether or not they accept domestic deposits, savings and loans,
savings banks, bank holding companies, and financial holding
companies under the Gramm-Leach-Bliley Act.
S. Lease is an arrangement conveying the right to use property, plant,
or equipment (i.e., land and/or depreciable assets), usually for a
stated period of time.

BE-15(LF) (REV. 9/2006)

Page 23

A foreign person holding real estate investments that are reportable
on the BE-15 must aggregate all such holdings. See Instruction I.C.
on page 20 and V.C. on page 27 for details.
Do not prepare your BE-15 report using the proportionate
consolidation method. Except as noted in b. through e. below,
consolidate all majority-owned U.S. affiliates into your BE-15 report.
Unless the exceptions discussed in a, b, c, or e below apply,
any deviation from these consolidation rules must be
approved in writing each year by BEA.
Exceptions to consolidated reporting – Note: If a U.S. affiliate is
not consolidated into its U.S. parent’s BE-15 report, then it must be
listed on the Supplement B of its parent’s BE-15 report and each
nonbank U.S. affiliate must file its own Form BE-15(LF) or BE-15(SF).
a. DO NOT CONSOLIDATE FOREIGN SUBSIDIARIES,
BRANCHES, OPERATIONS, OR INVESTMENTS NO MATTER
WHAT THE PERCENTAGE OWNERSHIP.
Include foreign holdings owned 20 percent or more (including
those that are majority-owned) using the equity method of
accounting. Do not report employment, land, and other property,
plant and equipment and DO NOT eliminate intercompany
accounts for holdings reported using the equity method.
DO NOT list any foreign holdings on the Supplement B.

IV. INSTRUCTIONS FOR SPECIFIC SECTIONS OF THE
REPORT FORM — Continued

reported in column (2) must be the unrestated ending
balances as of June 30, 2005. 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 66. To reconcile
the beginning and ending net property, plant and
equipment balances, affiliate A must include an adjusting
entry in item 88.

Oil and gas sites owned by U.S. affiliates and located outside of
U.S. claimed territorial waters are to be treated as foreign
subsidiaries of the U.S. affiliates if they meet one of the following
criteria: (1) they are incorporated in a foreign country; (2) they are
set up as a branch; or (3) they have a physical presence in a
foreign country as evidenced by plant and equipment or
employees located in that country.
Real estate located outside the United States that is owned by the U.S.
affiliate and generates revenues for, or reimbursements to, the U.S.
affiliate, or that facilitates the foreign operations of the U.S. affiliate is
a foreign subsidiary and should not be consolidated on this BE-15
report.
b. Do not consolidate banking activities. If the nonbank U.S.
affiliate reporting on the Form BE-15(LF) has a direct or indirect
ownership interest in a U.S. bank, bank holding company (BHC), or
any other banking activity, such as a U.S. wholesale or limited
purpose bank, DO NOT consolidate those banking activities into the
Form BE-15(LF). Banks are not required to file a separate BE-15
report, however, list unconsolidated banking affiliates on the
Supplement B.
Include on Form BE-15(LF) any banking operations owned 20
percent or more (including those that are majority-owned) using
the equity method of accounting. Do not report employment, land,
and other property, plant, and equipment and DO NOT eliminate
intercompany accounts for banking operations reported using the
equity method.
For BE-15 reporting purposes, treat Financial Holding Companies in
the same manner as you would treat a BHC.
c. Special consolidation rules apply to U.S. affiliates that are
limited partnerships or that have an ownership interest in a
U.S. limited partnership. These rules can be found on our web site
at www.bea.gov/bea/surveys/fdiusfaq.htm#1. Scroll to the heading
"BE-15 – Annual Survey Report" and click on the question "How do I
report if I am a limited partnership or have an ownership interest in a
limited partnership?" Also see instruction 6.b. below for additional
information about partnerships.
d. You must submit a request in writing EACH YEAR to BEA in
order to receive permission to file separately for any U.S.
affiliate that should otherwise be consolidated. Report such
affiliates, if not consolidated, on Form BE-15(LF) using the equity
method of accounting. DO NOT eliminate intercompany accounts for
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-15(LF) or BE-15(SF). (See diagram below.)

Foreign person B

Foreign person A

Foreign
U.S.

100%
30%

U.S. affiliate X
60%
U.S. affiliate Y

U.S. affiliate Y may not be fully consolidated into U.S. affiliate X
because of the 30 percent direct ownership by foreign person B.
If this exception applies, 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 BE-15 report on an equity basis. For
example, using 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.
4. Reporting period – The report covers the U.S. affiliate’s 2006 fiscal
year. The affiliate’s 2006 fiscal year is defined as the affiliate’s
financial reporting year that had an ending date in calendar year 2006.
Special Circumstances:
a. 52/53 week fiscal year – Affiliates having a "52/53 week" fiscal
year that ends within the first week of January 2007 are
considered to have a 2006 fiscal year and should report
December 31, 2006 as their 2006 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 2006.
c. Change in fiscal year
(1) New fiscal year ends in calendar year 2006 – A U.S. affiliate
that changed the ending date of its financial reporting year
should file a 2006 BE-15 report 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, 2005 fiscal year end
date but changed its 2006 fiscal year end date to March 31.
Affiliate A should file a 2006 BE-15 report covering the 12 month
period from April 1, 2005 to March 31, 2006.
The ending balance sheet amounts reported in column (1)
of items 38 through 54 must be the correct balances as of
March 31, 2006. The beginning balance sheet amounts

BE-15(LF) (REV. 9/2006)

Page 24

(2) No fiscal year ending in calendar year 2006 – If a
change in fiscal year results in a U.S. affiliate not having
a fiscal year that ended in calendar year 2006, the
affiliate should file a 2006 BE-15 report that covers
12 months. The following example illustrates the
reporting requirements.
Example 2: U.S. affiliate B had a December 31, 2005
fiscal year end date but changed its next fiscal year end
date to March 31. Instead of having a short fiscal year
ending in 2006, affiliate B decides to have a 15 month
fiscal year running from January 1, 2006 to March 31,
2007. Affiliate B should file a 2006 BE-15 report covering a
12 month period ending in calendar year 2006, such as
the period from April 1, 2005 to March 31, 2006.
In this example, the ending balance sheet amounts
reported in column (1) of items 38 through 54 must be the
correct balances as of March 31, 2006. The beginning
balance sheet amounts reported in column (2) must be
the unrestated ending balances as of December 31,
2005. 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 66. To reconcile the beginning and ending
net property, plant and equipment balances, affiliate B
must include an adjusting entry in item 88.
For 2007, assuming no further changes in the fiscal year
end date occur, affiliate B should file a BE-15 report
covering the 12 month period from April 1, 2006 to
March 31, 2007.
5. Reporting for a U.S. business that became a U.S. affiliate
during fiscal year 2006 –
a. A U.S. business enterprise that was newly
established in fiscal year 2006 should file a report for
the period starting with the establishment date up to and
ending on the last day of its fiscal year that ended in calendar year 2006. DO NOT estimate amounts 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
2006 that became a U.S. affiliate in fiscal year 2006
should file a report covering a full 12 months of operations.
6. Form of organization of U.S. affiliate – Reporting by
unincorporated U.S. affiliates
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 should file a separate BE-15
report. Do not combine two or more directly owned U.S.
affiliates on a single BE-15 report. The only exception is
for U.S. affiliates that are real estate investments. See
instruction I.C. on page 22 and V.C. on page 27 for details.
(2) INDIRECTLY OWNED – Except as noted in the
exceptions to the consolidation rules starting on
page 21, an indirectly owned unincorporated U.S.
affiliate that is owned more than 50 percent by another
U.S. affiliate should 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
should file a separate BE-15 report if no other U.S.
affiliate owns a voting interest of more than 50 percent.
b. Partnerships – Most partnerships are either general
partnerships or limited partnerships. A general partnership
usually consists of at least two general partners who
together control the partnership. A limited partnership
usually consists of at least one general partner and one
limited partner. The general partner usually controls a
limited partnership. The limited partner has a financial
interest but does not usually have any voting rights (control)
in a limited partnership.
Partners without voting rights (control) cannot have direct
investment in a partnership. Therefore, limited partners do
not usually have direct investment. The existence of direct
investment in a partnership is determined by the percentage
of control exercised by the partner(s). The percentage of
control exercised by a partner may differ from its financial
interest in the partnership.
(1) General Partnerships
Determination of voting interest – "Voting interest" is
defined in instructions 12-16 on page 25. The
determination of the percentage of voting interest of a
general partner 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 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.

IV. INSTRUCTIONS FOR SPECIFIC SECTIONS OF
THE REPORT FORM – Continued

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
and preferred. 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 amount. There are 50 shares of preferred stock
outstanding. Each preferred share has an ownership interest in
1 percent of the total owners’ equity amount but has no voting
rights. Foreign parent B owns all 50 shares of the common
stock. 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 U.S. investors, foreign parent B has only a 50
percent equity interest in the owners’ equity amount of U.S.
affiliate A.

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 managing 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 12-16 below. The
determination 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 in 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

21–34
Industry classification of fully consolidated U.S. affiliate
Book Publishers and Printers – 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 should allocate
their sales based on the activities of their fully consolidated
domestic U.S. holdings. For example, a REIT that owns a shopping
center, should 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 partnership 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 should classify revenues
generated by that activity in ISI code 5224 (nondepository credit
intermediation). A REIT that holds only minority voting interests in
one or more properties should report revenues generated by those
minority interests as "income from equity investments in
unconsolidated affiliates" (item 56) and the REIT should be classified
in ISI code 5512 (holding companies, except bank holding
companies).

Special consolidation rules apply to U.S. affiliates
that are limited partnerships or that have an
ownership interest in a U.S. limited partnership.
See www.bea.gov/bea/surveys/fdiusfaq.htm#1 for
details. Scroll to the heading "BE-15 – Annual Survey
Report" and click on the question "How do I report if I
am a limited partnership or have an ownership interest
in a limited partnership?"
c. Limited Liability Companies (LLCs)
Determination of voting interest – "Voting interest" is
defined in instruction 12-16 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 for 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.

PART II – FINANCIAL AND OPERATING DATA OF U.S.
AFFILIATE
Section B – INCOME STATEMENT
57. 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 57:
(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.
EXCLUDE unrealized gains or losses due to changes in the
valuation of financial instruments that are taken to other
comprehensive income. Reflect such changes in items 52b
and 52c (total accumulated other comprehensive income
(loss)).
EXCLUDE income from explicit fees and commissions
from item 57. Include income from these fees and
commissions as part of your income from operations
on lines 21 through 34.
(2) Real estate companies – Include in item 57:

8. U.S. affiliates NOT fully consolidated – Report equity
investments in U.S. business enterprises that are not fully
consolidated and owned 20 percent or more (including those
that are majority owned) using the equity method of
accounting. Do not report employment, land, and other
property, plant, and equipment and DO NOT eliminate
intercompany accounts for holdings reported using the equity
method.

(a) impairment losses, as defined by FAS 144, and
(b) goodwill impairment as defined by FAS 142.
EXCLUDE the revenues earned and expenses incurred
from the sale of real estate you own. Such revenues should
be reported as operating income in items 34 column 2, 55,
and 72 and as sales of goods in item 73. Such expenses,
including the net book value of the real estate sold, should
be reported as costs of goods sold in item 60. Do not net
the expenses against the revenues.

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 of at least 10 percent and that are not consolidated in
this Form BE-15(LF) on the Supplement B.
12–16 – 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
instructions 6.b.(1) and 6.b.(2)(a) above for information about
determining the voting interest for partnerships. See instruction
6.c. 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 6.b.(2) above for information about limited
partnerships.

BE-15(LF) (REV. 9/2006)

Section D – DISTRIBUTION OF SALES OR GROSS
OPERATING REVENUES
72–79
Disaggregate the total sales or gross operating revenues into
sales of goods, investment income, and sales of services.
73. Sales of goods – Goods are normally outputs that are
tangible. Report as sales of goods:
• Mass produced media, including exposed film, video tapes,
DVD’s, audio tapes, and CD’s.
• Books. NOTE: Book publishers – To the extent feasible,
report as sales of services all revenues associated with the
design, editing, and marketing activities necessary for
producing and distributing books that you both publish and
sell. If you cannot unbundle (i.e., separate) these revenues
from the value of the books you sell, then report your total
sales as sales of goods or services based on the activity that
accounts for a majority of the value.

Page 25

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•
•
•
•
•

IV. INSTRUCTIONS FOR SPECIFIC SECTIONS OF
THE REPORT FORM – Continued
Energy trading activities where you take title to the goods.
NOTE: If you act in the capacity of a broker or agent to
facilitate the sale of goods and you do not take title to the
goods, report your revenue (i.e., commissions) as sales of
services on line 75.
Magazines and periodicals sold in retail stores. NOTE:
Report subscription sales as sales of services on line 75.
Packaged general use computer software.
Structures sold by businesses in real estate.
Revenues earned from building structures by businesses in
construction.
Electricity, Natural gas, and Water. NOTE: Revenues derived
from transmitting and/or distributing these goods, as
opposed to revenues derived from the sale of the actual
product, should, to the extent feasible, be reported as sales
of services on line 75.

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.
102. Research and development expenditures – Report 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.
103. 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).

74. 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 75.
75. Sales of services – Services are normally outputs that are
intangible. Report as sales of services:
• Advertising revenue.

Section J – EXPORTS AND IMPORTS OF U.S. AFFILIATE
104–106
U.S. trade in goods (exports and imports) – Report amounts
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" basis may be substantial. A major
difference arises when a U.S. affiliate buys goods in foreign country
A and sells them in foreign 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, but ships the goods
directly from the United States to an unaffiliated foreign person. 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.

• Commissions and fees earned by companies engaged in
finance and real estate activities.
• Premiums earned by companies engaged in insurance
activities. NOTE: Calculate as direct premiums written
(including renewals) net of cancellations, plus reinsurance
premiums assumed, minus reinsurance premiums ceded,
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 73.
• Newspapers.
• Pipeline transportation.
• Software downloaded from the Internet, electronic mail, an
Extranet, Electronic Data Interchange network, or some
other online system.
• Computer systems design and related services.
• Negotiated licensing fees for software to be used on networks.
• Electricity transmission and distribution, Natural gas
distribution, and Water distribution.
Section E – TOTAL EMPLOYEE COMPENSATION
80–82
80. 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 persons who are not employees.
Wages and salaries include direct payments by employers for
vacations, sick leave, severance (redundancy) pay, etc. Include
employer contributions to benefit funds. Exclude payments
made by, or on behalf of, benefit funds rather than by the
employer.
Wages and salaries include in-kind payments, valued at their
cost, that are clearly and primarily of benefit to the
employees as consumers. Exclude expenditures that benefit
employers as well as employees, such as expenditures for
plant facilities, employee training programs, and
reimbursement for business expenses.

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.
b. Timing – Only include goods actually shipped between the
United States and a foreign country during FY 2006
regardless of when the goods were charged or consigned.
For example, include goods shipped by the U.S. affiliate in
FY 2006 that were charged or consigned in FY 2007, but
exclude goods shipped in FY 2005 that were charged or
consigned in FY 2006.
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. By (or to) whom the 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 but ships the goods to an unaffiliated
foreign person, record the goods as U.S. goods exports by
the U.S. affiliate to the unaffiliated foreign person.

81. 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.

Goods shipped by an independent carrier or a freight
forwarder to or from the United States at the expense of
a U.S. affiliate are shipments by the U.S. affiliate.
e. 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 I – TECHNOLOGY
102–103
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).

BE-15(LF) (REV. 9/2006)

Page 26

V. SPECIAL INSTRUCTIONS
A. Insurance companies – Reporting should be in accordance
with U.S. Generally Accepted Accounting Principles not
Statutory Accounting Practices (SAP). For example, the BE-15
report should include the following assets even though they are
not acceptable under SAP: 1. nontrusteed or free account
assets, and 2. nonadmitted assets such as furniture and
equipment, agents’ debit balances, and all receivables deemed
to be collectible.
Item on Form BE-15(LF):
39a. CURRENT RECEIVABLES – Include current items such
as agents’ balances, uncollected premiums, amounts
recoverable from reinsurers, and other current notes
and accounts receivable (gross of allowances for
doubtful items) arising from the ordinary course of
business.
46

CURRENT LIABILITIES AND LONG-TERM DEBT –
Include current items such as loss liabilities, policy
claims, commissions due, other current liabilities
arising from the ordinary course of business, and
long-term debt. Include policy reserves in "Other
non-current liabilities," item 47, unless they are
clearly current liabilities. Exclude mandatory
securities valuation reserves that are appropriations
of retained earnings. Include them in the owners’
equity section of the balance sheet.

SALES OR GROSS OPERATING REVENUES,
EXCLUDING SALES TAXES – Include items such
as earned premiums, annuity considerations, gross
investment income, and items of a similar nature.
Exclude income from unconsolidated affiliates that is
to be reported in item 56, and certain gains or losses
that are to be reported in item 57.
CERTAIN REALIZED AND UNREALIZED GAINS
(LOSSES) – See special instructions for item 57 on
page 25 of this form.
COST OF GOODS SOLD OR SERVICES RENDERED, AND
SELLING, GENERAL, AND ADMINISTRATIVE
EXPENSES – Include costs relating to sales or gross
operating revenues, item 55, such as policy losses incurred,
death benefits, matured endowments, other policy benefits,
increases in liabilities for future policy benefits, other
underwriting expenses, and investment expenses.

INVESTMENT INCOME – Report that portion of sales or
gross operating revenues, items 55 and 72, that is
investment income (e.g., interest and dividends).
However, report gains and (losses) on investments in
accordance with the special instructions for item 57
on page 25 of this form.
75 SALES OF SERVICES – Include premium income and
income from actuarial, claims adjustment, and other
services, if any.
B. Railroad transportation companies – Railroad transportation
companies should include only the net annual balances for
interline settlement items (car hire, car repair, freight revenues,
switching revenues, and loss and damage settlements) in items
39a, 44, and 46 of Form BE-15(LF).
C. Real Estate – The ownership of real estate is defined to be
a business enterprise, and if the real estate is foreign
owned, it is a U.S. affiliate of a foreign person. A BE-15
report is required unless the enterprise is otherwise exempt.
Residential real estate held exclusively for personal use and not
for profit making purposes is not subject to the reporting
requirements. A residence that is an owner’s primary residence
that is then leased by the owner while outside the United States,
but which the owner intends to reoccupy, is considered real
estate held for personal use and therefore not subject to the
reporting requirements. Ownership of U.S. residential real estate
by a corporation whose sole purpose is to hold the real estate
for the personal use of the owner(s) of the corporation is
considered to be real estate held for personal use and therefore
not subject to the reporting requirements.

BE-15(LF) (REV. 9/2006)

Page 27

Aggregation of real estate investments – A foreign person
holding real estate investments that are reportable on the BE-15
must aggregate all such holdings for the purpose of applying
the reporting criteria (see instruction I.C. on page 22 of this
form). If the aggregate of such holdings exceeds one or more of
the exemption levels, then the holdings must be reported even if
individually they would be exempt. In such a case, file a single
BE-15 report covering the aggregated holdings. If on an
aggregated basis any one of the following three items – total
assets (do not net out liabilities), or sales or gross operating
revenues, excluding sales taxes, or net income after provision
for U.S. income taxes – exceeds $125 million (positive or
negative), file Form BE-15(LF). If permission has been received in
writing from BEA to file on an nonaggregated basis, you must
report each real estate investment on a Form BE-15(LF) if a Form
BE-15(LF) would have been required on an aggregated basis.
Nonaggregated reports should be filed as a group and you
should inform BEA that they are all for one owner.
In part I, Identification of U.S. Affiliate, BEA is not seeking a legal
description of the property, nor necessarily the address of the
property itself. Because there may be no operating business
enterprise for a real estate investment, what BEA seeks is a
consistently identifiable name for the investment (i.e., the U.S.
affiliate) together with an address to which report forms can be
mailed so that the investment (affiliate) can be reported on a
consistent basis for each reporting period and for the various
BEA surveys.
Thus, in item 1 of the BE-15 survey forms the "name and
address" of the U.S. affiliate might be:
XYZ Corp. N.V., Real Estate Investments
c/o B&K Inc., Accountants
120 Major Street
Miami, FL XXXXX
If the investment property has a name, such as Sunrise
Apartments, the name and address in item 1 of the BE-15 survey
forms might be:
Sunrise Apartments
c/o ABC Real Estate
120 Major Street
Miami, FL XXXXX
There are questions throughout the Form BE-15(LF) that may not
apply to certain types of real estate investments, such as the
employer identification number, the number of employees, and
exports and imports. In such cases, mark the items "none."
Joint ventures and partnerships – If a foreign person has a
direct or indirect voting ownership interest of 10 percent or
more in a joint venture, partnership, etc., that is formed to own
and hold, develop, or operate real estate, the joint venture,
partnership, etc., in its entirety, not just the foreign person’s
share, is a U.S. affiliate and must be reported as follows:
1. If the foreign interest in the U.S. affiliate is directly held by
the foreign person, then a Form BE-15(LF) or BE-15(SF)
must be filed by the affiliate (subject to the exemption
criteria and aggregation rules discussed above).
2. If a voting interest of more than 50 percent in the U.S.
affiliate is owned by another U.S. affiliate, the owned
affiliate must be fully consolidated in the Form BE-15(LF)
or BE-15(SF) of the owning affiliate.
3. If a voting interest of 50 percent or less in the U.S. affiliate is
owned by another U.S. affiliate, and no U.S. affiliate owns a
voting interest of more than 50 percent, then a separate
Form BE-15(LF) or BE-15(SF) must be filed by the owned
affiliate. The BE-15 report(s) of the owning affiliate(s) must
show an equity investment in the owned affiliate.

V. SPECIAL INSTRUCTIONS – Continued
3. If an owner or employee of a business enterprise resides
outside the country of location of the enterprise for one year
or more for the purpose of furthering the business of the
enterprise, and the country of the business enterprise is the
country of citizenship of the owner or employee, then the
owner or employee is considered a resident of the country of
citizenship, provided there is the intent to return to the
country of citizenship within a reasonable period of time.

D. Farms – For farms that are not operated by their foreign
owners, the income statements and related items should be
prepared based on the extent to which the income from the
farm accrues to, and the expenses of the farm are borne by,
the owner. Generally this means that income, expenses, and
gain (loss) assignable to the owner should reflect the extent
to which the risk of the operation falls on the owner. For
example, even though the operator and other workers on the
farm are hired by a management firm, if their wages and
salaries are assigned to, and borne by, the farm operation
being reported, then the operator and other workers should
be reported as employees of that farm operation and the
wages and salaries should be included as an expense in the
income statement.
EXAMPLES:

4. Individuals and members of their immediate family who are
residing outside their country of citizenship as a result of
employment by the government of that country – diplomats,
consular officials, members of the armed forces, etc. – are
considered to be residents of their country of citizenship.
VI. FILING THE BE-15

1. If the farm is leased to an operator for a fixed fee, the
owner should report the fixed fee in "sales or gross
operating revenue," and should report the nonoperating
expenses that he or she may be responsible for, such as
real estate taxes, interest on loans, etc., as expenses in the
income statement.

A. Due date – File a fully completed and certified Form BE-15(LF),
BE-15(SF), or BE-15(EZ) no later than May 31, 2006. If the U.S.
affiliate is exempt from filing Form BE-15(LF), BE-15(SF), or
BE-15(EZ) based on the criteria in instruction I.B. on page 22,
complete and file Form BE-15 Supplement C by May 31, 2007.
B. Mailing report forms to a foreign address – BEA will
accommodate foreign owners that wish to have forms sent
directly to them. However, the extra time consumed in mailing
to and from a foreign place may make meeting filing deadlines
difficult. In such cases, please consider using BEA’s electronic
filing option. Go to our web site at www.bea.gov/astar/
for details about this option. To obtain forms go to:
www.bea.gov/bea/surveys/fdiusurv.htm.

2. If the farm is operated by a management firm that
oversees the operation of the farm and hires an operator,
but the operating income and expenses are assigned to the
owner, the income and expenses so assigned should be
shown in the requested detail in the income statement, and
related items, as appropriate. (The report should not show
just one item, i.e., the net of income less the management
fee, where the management fee includes all expenses.)

C. 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 and should explain the basis for the request. You may
request an extension via email at be12/15@bea.gov. For
extension requests of 30 days or less, you may call BEA at
(202) 606-5577. All requests for extensions must be received
BEFORE the due date of the report.
D. Assistance – For assistance, telephone (202) 606-5577, 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
E. Annual stockholders’ report or other financial statements –
Please furnish a copy of your FY 2005 annual stockholders’ report
or Form 10K when filing the BE-15 report. If you do not publish
an annual stockholders’ report or file Form 10K, please provide
any financial statements that may be prepared, including the
accompanying notes. Information contained in these statements
is useful in reviewing your report and may reduce the need for
further contact. Section 5(c) of the International Investment and
Trade in Services Survey Act, Public Law 94-472, 90 Stat. 2059, 22
U.S.C. 3101-3108, as amended, provides that this information can
be used for analytical and statistical purposes only and that it
must be held strictly confidential.

E. Estates, trusts, and intermediaries
A FOREIGN ESTATE is a person and therefore may have direct
investment, and the estate, not the beneficiary, is considered to
be the owner.
A TRUST is a person but it is not a business enterprise. The
trust is considered to be the same as an intermediary, and
should report as outlined in the instructions for intermediaries
below. For reporting purposes, the beneficiary(ies) of the trust, is
(are) considered to be the owner(s) for purposes of determining
the existence of direct investment, except in two cases: (1) if
there is, or may be, a reversionary interest, and (2) if a
corporation or other organization creates a trust designating its
shareholders or members as beneficiaries. In these two cases,
the creator(s) of the trust is (are) deemed to be the owner(s) of
the investments of the trust (or succeeding trusts where the
presently existing trust had evolved out of a prior trust), for the
purposes of determining the existence and reporting of direct
investment.
This procedure is adopted in order to fulfill the statistical
purposes of this survey and does not imply that control over an
enterprise owned or controlled by a trust is, or can be, exercised
by the beneficiary(ies) or creator(s).
FOR AN INTERMEDIARY:
1. If a U.S. intermediary holds, exercises, administers, or
manages a particular foreign direct investment in the
United States for the beneficial owner, such intermediary
is responsible for reporting the required information for,
and in the name of, the U.S. affiliate. Alternatively, the
U.S. intermediary can instruct the U.S. affiliate to submit
the required information. Upon so doing, the intermediary
is released from further liability to report, provided it has
informed BEA of the date such instructions were given and
provides BEA the name and address of the U.S. affiliate,
and has supplied the U.S. affiliate with any information in
the possession of, or which can be secured by, the
intermediary that is necessary to permit the U.S. affiliate to
complete the required reports. When acting in the capacity
of an intermediary, the accounts or transactions of the U.S.
intermediary with a foreign beneficial owner are
considered as accounts or transactions of the U.S. affiliate
with the foreign beneficial owner. To the extent such
transactions or accounts are unavailable to the U.S.
affiliate, BEA may require the intermediary to report them.

F. Number of copies – File a single original copy of the form and
supplement(s). If you are not filing electronically, this should be
the copy with the address label on page 1, if such a labeled
copy has been provided by BEA. (Make corrections to the
address on the label, if necessary.) You should also retain a file
copy of each report for three 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 VI.H., below.)
G. Where to send the report – To file electronically, see our
web site at www.bea.gov/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

2. If a foreign beneficial owner holds a U.S. affiliate through
a foreign intermediary, the U.S. affiliate may report the
intermediary as its foreign parent but, when requested,
must also identify and furnish information concerning the
foreign beneficial owner. Accounts or transactions of the
U.S. affiliate with the foreign intermediary are considered
as accounts or transactions of the U.S. affiliate with the
foreign beneficial owner.

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).

F. Determining place of residence and country of
jurisdiction of individuals – An individual is considered a
resident of, and subject to the jurisdiction of, the country in
which he or she is physically located. The following guidelines
apply to individuals who do not reside in their country of
citizenship:
1. Individuals who reside, or expect to reside, outside their
country of citizenship for less than one year are considered
to be residents of their country of citizenship.
2. Individuals who reside, or expect to reside, outside their
country of citizenship for one year or more are considered
to be residents of the country in which they are residing,
except as provided in paragraphs 3 and 4 below.

BE-15(LF) (REV. 9/2006)

Page 28

File Type	application/pdf
File Modified	2006-09-07
File Created	2006-09-07