Manufacturers' Shipments, Inventories & Orders to the Department of Defense

Appendix A
INSTRUCTIONS FOR COMPLETING THIS FORM
A summary of the instructions for completing this form is provided below. Clarification of instructions or definitions may be obtained by calling the U.S.
Census Bureau, M3 staff, on 301–763–4832.
Who should report – This report covers the manufacturing establishment named in the address box of the form. If your company operates more
than one location, REPORT ONLY for those establishments for which you have received a report form.
Purpose – This survey collects shipments, inventories, and unfilled orders data from domestic manufacturing establishments for use in the
preparation of industry estimates for thirteen industry categories in the Manufacturers’ Shipments, Inventories, and Orders (M3) Survey encompassing
defense manufacturing activities.
Burden hour estimate – Public reporting burden for this collection of information is estimated to vary from 20 minutes to 40 minutes per response,
including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and
reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including
suggestions for reducing this burden, to Paperwork Project XXXX-XXXX, U.S. Census Bureau, 4600 Silver Hill Road, AMSD-3K138, Washington, D.C.
20233. You may e-mail comments to Paperwork@census.gov, use "Paperwork Project XXXX-XXXX", as the subject. Response to this collection of
information is not required unless it displays a valid approval number from the Office of Management and Budget (OMB). The eight-digit OMB number
appears in the upper right corner of this report form.
Reporting period – Report data on a calendar year basis for 2006 and 2007 in the respective columns. However, if your establishment uses a fiscal
year that ends between October and February, fiscal year data is acceptable.
The reported figures should be limited to domestic operations (the 50 States and the District of Columbia). Please note that export
shipments to and orders from foreign subsidiaries should be included.
Use of estimates – If actual figures are not available, estimates are acceptable. Please indicate in the “Remarks” section if figures are estimates.

● TOTAL NET SHIPMENTS –

REPORTING DEFINITIONS

䡩 Report total net shipments (sales) for domestic manufacturing during the calendar year for your reporting unit. Include shipments of products to
other companies, individuals, U.S. Government agencies, and foreign customers, as well as shipments and transfers to other divisions or
subsidiaries of your company. Shipments should be net, after discounts and allowances, exclusive of nonmanufacturing activities.

䡩 Department of Defense – Report net shipments for which the Department of Defense is the ultimate customer, for the specified time period.

Exclude shipments to Government agencies such as National Aeronautics and Space Administration, Department of Energy, Federal Aviation
Administration, Department of Homeland Security, U.S. Coast Guard, U.S. Merchant Marine, as well as shipments to foreign governments.

● TOTAL ORDER BACKLOG –
䡩 Report orders that have not yet passed through the sales account (less cancellations) as of December 31. Orders, where applicable, should
include orders from other segments of your company. Do not include orders requiring further negotiations, authorization, or funding before
the order is final.

䡩 Department of Defense – Report order backlog of products for which the Department of Defense is the ultimate customer as of December 31.
Exclude order backlog for Government agencies such as National Aeronautics and Space Administration, Department of Energy, Federal
Aviation Administration, and Department of Homeland Security, U.S. Coast Guard, U.S. Merchant Marine, as well as order backlog to foreign
governments.

● TOTAL INVENTORIES –
䡩 Report total inventories, warehoused in the U.S., regardless of where manufactured, at current cost or market value, as of December 31.
If your inventories are subject to LIFO valuation, report the value prior to the adjustment for the LIFO reserve.
Note: Unlike GAAP, do not deduct progress billings from the reported inventory line items, i.e. inventories should be reported gross not
net of progress billings.

䡩 Department of Defense – Report inventory of products for which the Department of Defense is the ultimate customer as of December 31.

Exclude inventories for Government agencies such as National Aeronautics and Space Administration, Department of Energy,
Federal Aviation Administration, and Department of Homeland Security, U.S. Coast Guard, U.S. Merchant Marine, as well as inventories to
foreign governments.

● OPERATIONAL STATUS – Report the operational status of this plant at the end of 2007. If this reporting unit was temporarily idle during the period
covered by this survey, this report should still be completed. Please indicate on the form how long the unit was idle. If this plant was sold or leased to
another company, indicate the month and year this took place. Please provide the new company’s name, address, phone number, and a contact (if
possible) in the “Remarks” section on the form. If your company owned the plant for more than six months, please complete the form for that time
period. If your company owned the plant for less than six months, please state in "Remarks" section.
SPECIAL REPORTING INSTRUCTIONS
Shipbuilding and Repairing – For ships under construction, report the value of work done during the year as shipments. For vessels begun earlier
than the beginning of the year or not completed during the year report only the value of work done during the year. Value of work done during the year
may be based on multiplying the estimated percentage of work completed during the year by the contract price of the vessel, or net billings for work
done during the year.
Aerospace Industries – Fixed Price Contract – Report as shipments the value of deliveries during the year of complete aircraft, missiles, and
space vehicles. For long-term fixed price contracts sales may be recorded as payments received keeping consistent with the financial reports of the
establishment. Cost-Plus-Contract – Report as shipments the value of work done during the year. Value of work done during the year may be based
on multiplying the estimated percent of work completed during the year by the contract price of the aircraft or missile, or net billings for the work done
during the year.
FORM M-3DOD (5-20-2008)