Various Economic Area Pretesting Activities

BE-577 (Rev. 1/2011)

OMB No. 0608-0004: Approval Expires 12/31/2013

QUARTERLY SURVEY OF U.S. DIRECT INVESTMENT ABROAD
Direct Transactions of U.S. Reporter with Foreign Affiliate

Affiliate ID

MANDATORY – CONFIDENTIAL
1 Is this report a submission of a past report?

Electronic filing:

Go to www.bea.gov/efile for details

Mail reports to:

U.S. Department of Commerce
Bureau of Economic Analysis, BE-69(Q)
Washington, DC 20230

Deliver reports to:

U.S. Department of Commerce
Bureau of Economic Analysis, BE-69(Q)
Shipping and Receiving Section, M-100
1441 L Street, NW
Washington, DC 20005

003

FAX reports to:

Yes
No
2 What is the date range and year within which the foreign
affiliate’s quarter ends for this report? Mark (X) one and
enter year.
2

2/16–5/15

5/16–8/15

8/16–11/15

11/16–2/15

0

Year

3 Name of U.S. Reporter

(202) 606-5305
4 U.S. Reporter mailing address – Generally, each U.S. Reporter
has a single address for all of its BE-577 reports.
E-mail
Telephone
Copies of form

Assistance:

be577@bea.gov
(202) 606-5557
www.bea.gov

4

004

5 Name of foreign affiliate being reported – Use the same name
on all reports filed subsequently for this affiliate with the Bureau
of Economic Analysis, e.g., Forms BE-11 and BE-10.

Definitions: Underlined terms are defined starting on page 9.
Due date: 30 days after the close of each calendar or fiscal quarter end; 45 days if the report is for the final quarter of the financial
reporting year.
Who must report: A Form BE-577 is required from every U.S. person that had direct transactions or positions with a foreign business
enterprise in which it had a direct and/or indirect ownership interest of at least 10 percent of the voting stock if an incorporated
business enterprise or an equivalent interest if an unincorporated business enterprise at any time during the reporting period. Reports
are required even though a foreign affiliate may have been established, acquired, seized, liquidated, expropriated, sold, or inactivated
during the reporting period.
Basic requirement: A Form BE-577 must be filed for each 1) directly-owned foreign affiliate for which total assets; annual sales or
gross operating revenues, excluding sales taxes; or annual net income after provision for foreign income taxes was greater than $60
million (positive or negative) at any time during the affiliate’s fiscal reporting year and each 2) indirectly-owned foreign affiliate that met
the $60 million threshold and had an intercompany debt balance with the U.S. Reporter that exceeded $1 million. If this affiliate does
not meet the reporting requirements complete Part V .
Coverage: All transactions or positions with the foreign affiliate by all U.S. domestic subsidiaries, divisions, etc., which constitute the
U.S. Reporter, as defined on page 11, must be combined on one Form BE-577.
Monetary values: Report in thousands of U.S. dollars. If an amount is between positive and negative $500, enter "0." Use parentheses
to indicate negative numbers.
Estimates: In order to supply a timely report, if actual amounts are not available, supply reasonable estimates and label them as such.
6

Country of location (country where affiliate’s physical 005
assets are located or primary activity is carried out) –
may differ from country of incorporation . . . . . . . . . . . . .

7

Is the foreign affiliate incorporated in the country of location indicated in 6 ?
007 1
1

8

1
2

Yes
No

If the foreign affiliate’s industry classification, based on the largest annual sales
or gross operating revenues, has changed, enter the revised industry code. If this is an
initial filing enter the current industry code (refer to the Summary of Industry
Classifications on page 12 or go to www.bea.gov/naics2007). For help in determining
the ISI code, go to www.bea.gov for a Worksheet for Determining ISI Code. . . . . . .
Please continue on next page

Current
Industry Code
006 1

______

Revised
2

______

Affiliate ID

9 How has the affiliate’s reporting status changed during the quarter?
Mark (X) one
008

1

1

Affiliate was not previously reported.

2

Affiliate was temporarily exempt after previously reporting; reporting resumes.

1

Month

Day

Year

2
1

3

Affiliate was merged or reorganized. Attach explanation and specify date of status change.

__/__/____

.

2
1

4

Affiliate was sold or seized. Only complete Part III and specify date of status change.

__/__/____

....

2
1

5

Affiliate was liquidated. Only complete Part III and specify date of status change. . . . . . . .

6

Affiliate fell below exemption level. Only complete Part V .

7

Affiliate became inactive. Specify date of status change.

8

Affiliate did not change reporting status during the quarter.

1

__/__/____

2
1

1

__/__/____

........................

10 How many foreign business enterprises are fully consolidated on this report? – If this report is for a
single business enterprise, enter "1" in the box below.
• The U.S. Reporter must consolidate foreign business enterprises on Form BE-577 in the same
manner as on Forms BE-11 and BE-10. See Definition on page 10 for rules for consolidation.
010

Number Consolidated . . . . . . . . . . . .
11 What type of equity interest does the U.S. Reporter hold in this foreign affiliate?
011

1
1
1

1
2
3

Only a direct equity interest – SKIP to 13 .
Only an indirect equity interest through another foreign affiliate.
Both a direct and indirect equity interest.

12 What is the name and ID number (if available) of the top
009
foreign affiliate parent in this affiliate’s ownership
chain that is directly owned by the U.S. Reporter? . . . . . . .

0

Example 1
• If the U.S. Reporter directly owns foreign affiliate A,
which, in turn, directly owns foreign affiliate B,
which, in turn, directly owns this affiliate (foreign
affiliate C), then affiliate A’s ID (top foreign affiliate
parent) should be provided in this item.

U.S. Reporter
Foreign affiliate A (top foreign affiliate parent)
directly owned by the U.S. Reporter
Foreign affiliate B

Foreign affiliate C
identified in 5

Example 2

U.S. Reporter

• For affiliates that are both directly and indirectly owned by
the U.S. Reporter, the amounts reported in Part I , Part III ,
and Part IV must be based on the U.S. Reporter’s direct
equity interest only.
• Amounts reported in Part II should only reflect direct
transactions, irrespective of direct or indirect ownership.

Page 2

Foreign affiliate A (top foreign affiliate parent)
directly owned by the U.S. Reporter

Foreign affiliate C
identified in 5

Please continue on next page

FORM BE-577 (Rev. 1/2011)

Part I – U.S. Reporter’s Direct Equity Share in the Foreign Affiliate

Affiliate ID

Instructions
13 A. • Report the amount that represents the U.S. Report’s equity, based on its directly held equity interest in the foreign
affiliate’s net income (loss) for the quarter, before provision for common or preferred dividends and before any
reduction for foreign withholding taxes on dividends, but after provision for other foreign income taxes.
• If the U.S. Reporter holds both a direct and indirect equity interest, only the share representing the direct equity
interest should be given in this item.
• Do not eliminate intercompany transactions.
• Include, on an equity basis, the foreign affiliate’s share in net income of unconsolidated foreign business enterprises owned
by it.
• Include remeasurement of the foreign affiliate’s foreign-currency-denominated assets and liabilities due to changes
in foreign exchange rates during the reporting period and other gains and losses included in 13 B.1.
B. • For certain gains (losses) included in net income, see Definitions on page 9.
• For certain gains (losses) for dealers in financial instruments and finance, insurance, and real estate companies,
see Special Instructions on page 11.
• Include in 13 B.2, unrealized holding gains (losses) due to changes in the valuation of available-for-sale securities
per FASB ASC 320 (FAS 115), and any other comprehensive income items required to be displayed separately
from retained earnings as per FASB ASC 220 (FAS 130).
C. • Report U.S. Reporter’s share of currency translation adjustments resulting from the translation of the foreign
affiliate’s financial statements from the affiliate’s functional currency into U.S. dollars. Such adjustments should be
computed in accordance with FASB ASC 830 (FAS 52) or other currently applicable standards of the Financial
Accounting Standards Board.
D. • Report dividends as of the date they were declared or paid, GROSS of any foreign taxes withheld. Any subsequent
settlement of dividends declared but not paid SHOULD NOT be reported a second time, but should be reflected
only as a reduction in Part II 17 A.
Report all items on a quarterly basis, NOT on a cumulative or year-to-date basis.
13 What is the U.S. Reporter’s share of:
For A, B, and C, base data on the books of the foreign affiliate

Current Quarter
Bil.

Mil.

Thou.

Dols.

101

A. The foreign affiliate’s quarterly net income (loss), after provision for foreign income taxes?

.....

$

000
Bil.

B. Certain gains (losses), after provision for foreign income taxes:

Mil.

Thou.

Dols.

111

1. Included in net income (loss) 13 A? See Definitions on page 9. . . . . . . . . . . . . . . . . . . . . . . . $

000
Bil.

Mil.

Thou.

121
2. Not included in net income (loss) 13 A but taken directly to other comprehensive income
(loss)? Do not include foreign currency translation adjustments, report such amounts in 13 C. . . . $

Dols.

000
Bil.

Mil.

Thou.

Dols.

131

C. The change in the balance sheet translation adjustment account during the quarter?

.........

$

000

For D, E and F, base data on the books of the U.S. Reporter
D. Dividends on common and preferred stock (gross of foreign affiliate withholding taxes) of an
incorporated foreign affiliate or distributed earnings of an unincorporated foreign affiliate (exclude 141
stock and liquidating dividends)? Report liquidating dividends in Part III 20 . . . . . . . . . . . . . . .

Bil.

Thou.

$

Dols.

000
Bil.

151
E. Foreign tax withheld on dividends of incorporated foreign affiliate or distributed earnings of
unincorporated foreign affiliate 13 D? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Mil.

Mil.

Thou.

$

Dols.

000
Bil.

Mil.

Thou.

Dols.

161

F. The net amount of dividends/earnings distributed ( 13 D less 13 E)?

FORM BE-577 (Rev. 1/2011)

...................

Please continue on next page

$

000

Page 3

Part II – Balances and Interest Between the U.S. Reporter and Foreign Affiliate
14

Is the foreign affiliate a depository or non-depository bank (ISI codes 5221 or 5229),
a securities broker or dealer (ISI code 5231), or in the finance industry (ISI codes 5223, 5224,
5238, or 5252)?
012

1
1

15

Affiliate ID

1

Yes

2

No – SKIP to 17

Is the U.S. Reporter named in 3 a "bank" or primarily acting as a securities broker or dealer (ISI code 5231)?
Note: A "bank" is a business engaged in deposit banking or closely related functions, including commercial banks,
Edge Act corporations, foreign branches and agencies of U.S. banks whether or not they accept deposits abroad,
savings and loans, savings banks, bank holding companies and financial holding companies under the
Gramm-Leach-Bliley Act.
013 1
1

1

Yes – Go to 16 A.

2

No – Go to 16 B.

16 A. Does the U.S. Reporter named in 3 have consolidated U.S. subsidiaries or units that have insurance, real
estate, or leasing activities?
014

1

1

1

Yes – Complete 17 and 18 but ONLY report the balances and interest between this foreign affiliate and the
units of the U.S. Reporter engaged in insurance, real estate, or leasing activities.

2

No – SKIP to Part III

16 B. Does the U.S. Reporter named in 3 have consolidated U.S. subsidiaries or units that have depository or
non-depository banking activities (ISI codes 5221 or 5229) or securities broker or dealer activities (ISI code 5231)?
015

1

1

1

Yes – Complete 17 and 18 but ONLY report the balances and interest between this foreign affiliate and the units
of the U.S. Reporter NOT engaged in depository or non-depository banking activities or securities broker or
dealer activities.

2

No – Go to 17

Remarks

Page 4

Please continue on next page

FORM BE-577 (Rev. 1/2011)

Part II – Balances and Interest Between the U.S. Reporter and Foreign Affiliate
(Continued)

Affiliate ID

Balances
17 What were the receivable and payable balances between the U.S. Reporter and the foreign affiliate?
• Base data on the books of the U.S. Reporter.
• Include current and long-term items, indebtedness resulting from a capital lease, and the net book value of
equipment under a long-term operating lease.
– If leases between the U.S. Reporter and the foreign affiliate are capitalized, then include the outstanding
capitalized value as an intercompany balance. Lease payments should be disaggregated into the amount that is
(i) a reduction in the intercompany balance, to be reported in items A or B, and (ii) interest to be reported in 18 .
– If leases between the U.S. Reporter and the foreign affiliate are operating leases for more than one year that have
not been capitalized, include the net book value. Lease payments should be disaggregated into the amounts that
represent (i) the return of capital, consisting of the depreciation component for long-term operating leases, which
should be reflected as a reduction in items A or B, and (ii) rent or net rent, which is not covered by this survey.
• The current quarter’s opening balance should be equal to the prior quarter’s closing balance; therefore, if it is
necessary to translate the balance into U.S. dollars, use the same exchange rate to translate the opening balance
for the current quarter as was used to translate the closing balance of the prior quarter.
• Derivatives contracts – Exclude the value of outstanding financial derivative contracts or any payments or receipts
resulting from the settlement of these contracts. For example, the settlements of interest rate derivatives should
NOT be reported as interest or as another type of transaction on this form. Derivatives contracts are covered by
the Treasury International Capital (TIC) Form D, Report of Holdings of, and Transactions in, Financial Derivatives
Contracts.
End
Beginning
of quarter
of quarter
Do NOT net receivables and payables
(1)
(2)
(A and B below)
Bil.

A. Owed to the U.S. Reporter by the
foreign affiliate (U.S. Receivables)

Mil.

Thou.

Dols.

221

................

$

000
Bil.

231
B. Owed to the foreign affiliate by the
U.S. Reporter (U.S. Payables) . . . . . . . . . . . . . . . . . . .

Bil.

Mil.

Thou.

Dols.

222

Mil.

Thou.

$

Dols.

000
Bil.

Mil.

Thou.

Dols.

232

$

000

$

000

If the closing balance on the preceding quarter’s report differs from the beginning balance above, please note.

Interest
18 What were the interest receipts and payments (gross of withholding taxes) between the U.S. Reporter and the foreign
affiliate named in 5 during the quarter?
• Report quarterly amounts (not year to date), GROSS OF WITHHOLDING TAXES.
• Include interest on capital leases.
• Do NOT net receipts and payments.

Current Quarter
Bil.

171
A. Interest receipts credited to the U.S. Reporter or charged to the foreign affiliate on amounts
related to 17 A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

FORM BE-577 (Rev. 1/2011)

Please continue on next page

Thou.

$
$

Dols.

000
Bil.

172
B. Interest payments credited to the foreign affiliate or charged to the U.S. Reporter on amounts
related to 17 B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Mil.

Mil.

Thou.

Dols.

000

Page 5

Part III – Change in U.S. Reporter’s Equity in the Foreign Affiliate

Affiliate ID

Report the transaction (i.e., market) value of consideration given or received for increases or
decreases in the U.S. Reporter’s equity holdings in the foreign affiliate.
Include in 19 or 20 :
• Treasury stock transactions with the U.S. Reporter and liquidating dividends.
• Capitalization of intercompany debt (report the amount of debt converted to equity as the transaction value of the
equity increase in 19 B), and adjust the debt balance as appropriate in Part II 17 .
Exclude from 19 and 20 Changes Caused by:
• Carrying net income (loss) to the equity account.
• Dividends/earnings distributed and stock dividends.
• Balance sheet translation adjustments.
• The effect of treasury stock transactions with persons other than the U.S. Reporter.
• Reorganizations in capital structure that do not affect total equity.
• Transactions between a directly-owned foreign affiliate and foreign affiliates that it, in turn, owns and transactions
between indirectly owned affiliates. (Affiliates that are entirely indirectly-owned by the U.S. Reporter, 19
21 and
20 should be blank.)
• Investments that are written off (include the amount written off in 21 A or 21 B, as appropriate).
Unincorporated foreign affiliates must report the U.S. Reporter’s share of any increase (decrease) in the foreign
affiliate’s equity (or home office account) arising from its transactions with the U.S. reporter, excluding amounts
reported in Part I or Part II .
19 What is the increase in the U.S. Reporter’s equity interest in this affiliate due to:

Bil.

242
A. Establishment of affiliate or acquisition (partial or total) of an equity interest in this affiliate
by the U.S. Reporter either from the affiliate or from other foreign persons? . . . . . . . . . . . . . .

Dols.

000
Mil.

Thou.

$

Dols.

000
Bil.

262
C. Acquisition (partial or total) of an equity interest in this affiliate by the U.S. Reporter
from other U.S. persons? Give name and address of seller.
.......................

Thou.

$
Bil.

252
B. Capital contributions and other transactions of the U.S. Reporter with foreign persons?
Specify.
.........................................................

Mil.

Mil.

Thou.

$

Dols.

000

20 What is the decrease in the U.S. Reporter’s equity interest in this affiliate due to:
272
A. Liquidation of affiliate or sale (partial or total) of an equity interest in this affiliate by the
U.S. Reporter either to the affiliate or to other foreign persons? . . . . . . . . . . . . . . . . . . . . . .
282
B. Return of capital contributions and other transactions of the U.S. Reporter with foreign
persons? Specify.
..................................................

Bil.

Mil.

Thou.

Bil.

Mil.

Thou.

$

000

$

21 For 19 and 20 , what are the amounts
by which the transaction value:

.

Dols.

$

Bil.

000
Bil.

Page 6

000

Mil.

Thou.

Dols.

302

Mil.

Thou.

$

Dols.

311

B. Is less than the value carried on the books of the affiliate?

Dols.

(2)

Thou.

301

A. Exceeds the value carried on the books of the affiliate?

Thou.

$

(1)

Mil.

Mil.

For liquidation or sale 20

For acquisition 19
Bil.

Dols.

000

Bil.
292
C. Sale (partial or total) of an equity interest in this affiliate by the U.S. Reporter to other
U.S. persons? Give name and address of new owner.
..........................

Dols.

000
Bil.

Mil.

Thou.

Dols.

312

$

Please continue on next page

000

$

000
FORM BE-577 (Rev. 1/2011)

Part IV – Selected Annual Data

Affiliate ID

• Complete once a year, no later than the second report following the close of the fiscal year.
• If an initial report, complete 22 – 26 as of the ending date of the quarter for the initial report.
• Include the cumulative translation adjustment in 25 D or 26 as appropriate.
• Retained earnings (deficit) of unconsolidated indirectly-owned affiliates should be included on the
report of the directly-owned foreign affiliate parent in 25 C or 26 as appropriate, on an equity
basis.

Month

Day

Year

322

22 What is the foreign affiliate’s fiscal year (or, if initial report, quarter) ending date?

.........

__/__/____

23 What is the U.S. Reporter’s percent of direct ownership based on equity interest
332
if an incorporated affiliate, or an equivalent interest in an unincorporated
___ ___ ___ . ___ %
affiliate? Round to the nearest tenth of one percent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

U.S. Reporter’s Equity in Foreign Affiliate’s Annual Net Income (Loss)
Bil.
342
24 What is the U.S. Reporter’s direct equity in the affiliate’s annual net income (loss) after
provision for foreign income taxes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Mil.

Thou.

$

Dols.

000

• Include, on an equity basis, this foreign affiliate’s share of net income (loss) in all unconsolidated
foreign enterprises it owns.
• Report annual net income (loss) calculated on the same basis used for calculating quarterly net
income (loss), 13 A.

U.S. Reporter’s Share of Total Owners’ Equity in Foreign Affiliate at Year End
(Or Quarter End if an Initial Report)
25 What is the U.S. Reporter’s direct equity in the incorporated foreign affiliate:

Bil.

Mil.

Thou.

Dols.

352

A. Total equity – Equals the sum of 25 B through 25 E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

000
Bil.

Mil.

Thou.

Dols.

362

B. Capital stock and additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

000
Bil.

Mil.

Thou.

Dols.

372

C. Retained earnings (deficit)

...............................................

$

000
Bil.

Accumulated other comprehensive income (loss)

Mil.

Thou.

Dols.

382

D. Translation adjustment component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

000
Bil.

Mil.

Thou.

Dols.

392

E. All other components including other comprehensive income (loss)

....................

$

000
Bil.

402
26 What is the U.S. Reporter’s share of total owners’ equity in the unincorporated
foreign affiliate? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

Mil.

Thou.

Dols.

000

• In calculating owner’s equity, any assets or liabilities of the affiliate carried on any owners’, as
well as those carried on the affiliate’s, books should be included.
• Owner’s equity should include cumulative earnings not distributed.

FORM BE-577 (Rev. 1/2011)

Page 7

Part V – Certification of Exemption

Affiliate ID

If the affiliate is exempt, complete 27 or 28 below to indicate reason.
27 Is the affiliate exempt because none of the three items below was greater than
$60 million (positive or negative) at any time during the affiliate’s fiscal year?
480 1
1

1

Yes – Provide amounts below

2

No – SKIP to 28

Bil.

Mil.

Thou.

Dols.

481

A. Total assets

........................................................

$

000
Bil.

Mil.

Thou.

Dols.

491

B. Annual sales of gross operating revenues, excluding sales taxes . . . . . . . . . . . . . . . . . . . . . .

$

000
Bil.

Mil.

Thou.

Dols.

501

C. Annual net income after provision for foreign income taxes . . . . . . . . . . . . . . . . . . . . . . . . . .

$

000

Month
502
D. What is the affiliate’s ending date of its financial reporting year for the amounts reported in
27 A, B, and C? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Day

Year

__/__/____

28 Is the affiliate exempt because it is indirectly owned and neither of the following items exceeds $1 million?
• Foreign affiliate’s end-of-quarter payables to the U.S. Reporter (Item 17 A)
• Foreign affiliate’s end-of-quarter receivables from the U.S. Reporter (Item 17 B)
505 1
1

1

Yes

2

No

Remarks

BEA USE ONLY
Page 8

462

463

464

465

466

467

468

469
FORM BE-577 (Rev. 1/2011)

Survey Information
Purpose – Reports on this form are required in order to provide reliable and up-to-date information on U.S. direct investment abroad
for inclusion in the U.S. international transactions and the national income and product accounts.
Authority – 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 under Section 5(b) (2) of
the Act (22 U.S.C. 3104). The implementing regulations are contained in Title 15, CFR, Part 806. This report has been approved by
the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. 3501, et seq.).
Penalties – Whoever fails to report may 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 violation, upon conviction, may be punished by a like fine, imprisonment, or both.
(22 U.S.C. 3105.) 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.
Respondent Burden – Public reporting burden for this collection of information is estimated to average 1 hour 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
0608-0004, Washington, DC 20503.
Confidentiality – The Act provides that your report 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.
Accounting methods and records – Follow generally accepted U.S. accounting principles unless otherwise specified in the
instructions. Corporations should generally use the same methods and records used to generate reports to stockholders, except
where otherwise instructed. Generate reports for unincorporated persons on an equivalent basis. Financial Accounting Standards
Board Accounting Standards Codification Topics are referred to as "FASB ASC" in the instructions.
Retention of copies – Retain a copy of filed reports for 3 years beyond the report’s original due date.
Retroactive reports – Quarterly reports for a year may be required retroactively when it is determined that the exemption level has
been exceeded. If a foreign affiliate’s total assets, sales, or net income (loss) exceed the exemption level in a given year, it is deemed
that the exemption level will also be exceeded in the following year. A U.S. Reporter claiming exemption from filing a given report
must complete the Certification of Exemption, giving the levels of total assets, sales, and net income (loss).

Definitions
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 or an equivalent interest for an
unincorporated business enterprise, including a branch.
Branch means the operations or activities conducted by a person in a different location in its own name rather than through an
incorporated entity.
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.
Certain gains (losses) – Certain gains (losses) after provision for foreign income taxes.
a. Sale or disposition of financial assets including investment securities; FASB ASC 320 (FAS 115 - Accounting for Certain
Investments in Debt and Equity Securities) holding gains (losses) on securities classified as trading securities; FASB ASC 320
impairment losses; and gains (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 11;
b. Sales or dispositions of land, other property, plant and equipment, or other assets, and FASB ASC 360 (FAS 144 - Accounting for the
Impairment or Disposal of Long-Lived Assets) 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 11;
c. Goodwill impairment as defined by FASB ASC 350 (FAS 142 - Goodwill and Other Intangible Assets);
d. Restructuring. Include restructuring costs that reflect write-downs or write-offs of assets or liabilities. Exclude actual payments and
charges to establish reserves for future expected payments, such as for severance pay, and fees to accountants, lawyers,
consultants, or other contractors;
e. Disposals of discontinued operations. Exclude income from the operations of a discontinued segment;
f. Remeasurement of foreign affiliate’s foreign-currency-denominated assets and liabilities due to changes in foreign exchange rates
during the reporting period;
Certain gains (losses) continued on page 10
FORM BE-577 (Rev. 1/2011)

Page 9

Definitions (Continued)
Certain gains (losses) continued
g. The cumulative effect of a change in accounting principle;
h. 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 write-ups, write-downs, and write-offs 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.
i. The cumulative effect of a change in the estimate of stock compensation forfeitures under FASB ASC 718
(FAS 123(R) – Share-Based Payments).
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 foreign business enterprise or an equivalent interest in an unincorporated foreign business
enterprise, including a branch.
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.
Foreign affiliate means an affiliate located outside the United States in which a U.S. person has direct investment.
Foreign affiliate parent means a U.S. Reporter’s foreign affiliate that has an equity interest in another foreign affiliate of the
U.S. Reporter.
Foreign person means any person resident outside the United States or subject to the jurisdiction of a country other than the
United States.
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.
a. Capital lease – A long-term lease under which transfer of ownership 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 to be owned by
the lessor.
b. Operating lease – Generally a lease with a term which is less than the useful life of the asset and in which a transfer of
ownership is not contemplated.
Person (as the term is used in the broad legal sense) means any individual, branch, partnership, associated group,
association, estate, trust, corporation, or other organization (whether or not organized under the laws of any state), and any
government (including a foreign government, the United States Government, a state or local government, and any agency
corporation, financial institution, or other entity or instrumentality thereof, including a government sponsored agency).
Rules for consolidation – The following rules should be used in determining which foreign business enterprises may be
consolidated on one foreign affiliate form.
Are the foreign business enterprises located in the
same country?

No

Do not consolidate

No

Do not consolidate

Yes
Are the foreign business enterprises in the same 4-digit
International Surveys Industry (ISI) classification or
integral parts of the same business operation?
Yes
Are the foreign business enterprises owned by the
same immediate parent?
Yes
Are the foreign business enterprises foreign bank
branches?

Yes

No

Must consolidate

May consolidate

No

Is one of the foreign business enterprises 100% owned
by the other business enterprise?

Yes

No

May consolidate

Do not consolidate

Note: Foreign business enterprises that have an equity investment in an unconsolidated business enterprise should report
that investment using the equity method of accounting.
Page 10

FORM BE-577 (Rev. 1/2011)

Definitions (Continued)
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.
U.S. person means any person resident in the United States or subject to the jurisdiction of the United States.
U.S. Reporter means the U.S. person that has direct investment in a foreign business enterprise, including a branch. If the
U.S. person is an incorporated business enterprise, the U.S. Reporter is the fully consolidated U.S. domestic enterprise, which
is defined as: (1) the U.S. corporation whose voting securities are not owned more than 50 percent by another U.S.
corporation, and (2) proceeding down each ownership chain from that U.S. corporation, any U.S. corporation whose voting
securities are more than 50 percent owned by the U.S. corporation above it. This consolidation excludes foreign branches and
all other foreign affiliates.

Special Instructions for reporting unincorporated foreign affiliates of U.S. Reporters
U.S. Reporters that cannot distinguish between equity and debt investment in their unincorporated foreign
affiliates: if your accounting records do not distinguish between intercompany debt ( 17 A and 17 B) and equity 26 , then:
1. Compute the net change in the home office account. (This equals: End-of-quarter home office account
minus beginning-of-quarter home office account.)
2. Subtract net income (loss) 13 A, certain realized and unrealized gains (losses) taken directly to other
comprehensive income or owner’s equity 13 B2, and the quarterly translation adjustment 13 C.
3. If the amount computed in 2. is positive, show it as an increase in equity 19 B. If the amount computed
in 2. is negative, show it as a remittance of earnings ( 13 D and 13 F) to the extent that there is quarterly
net income; show the residual, if any, as a decrease in equity 20 B. 17 A and 17 B should be blank.

Special Instructions for dealers in financial instruments and finance and insurance:
Dealers in financial instruments (including securities, currencies, derivatives, and other financial instruments) and
finance and insurance companies:
• Include in 13 B1 (1) impairment losses as defined by FASB ASC 320 (FAS 115), (2) realized gains or losses on trading or
dealing, and (3) unrealized gains or losses due to changes in the valuation of financial instruments that flow through the
income statement, and goodwill impairment as defined by FASB ASC 350 (FAS 142).
• Include unrealized gains or losses due to changes in the valuation of financial instruments that are taken directly to other
comprehensive income in 13 B2. Include income from explicit fees and commissions in 13 A.

Special Instructions for real estate companies:
Real estate companies:
Report gains or losses from the sale, disposition, or revaluation of land, other property, plant and equipment, or other assets
as follows:
Realized gains and losses
• Include gains or losses from sale of real estate in the ordinary course of trade or business in net income, 13 A.
• Do NOT include these gains and losses in 13 B1 or in 13 B2.
Impairment of long-lived assets
• Include impairment losses, as defined by FASB ASC 360 (FAS 144), and recognized during the period, in
net income, 13 A and in 13 B1.
Unrealized gains
• Include gains recognized due to the revaluation of real estate assets in 13 B1.
• Include goodwill impairment as defined by FASB ASC 350 (FAS 142).

FORM BE-577 (Rev.1/2011)

Page 11

Summary of Industry Classifications
Agriculture, Forestry, Fishing, and Hunting
1110
1120
1130
1140
1150

Crop production
Animal production
Forestry and logging
Fishing, hunting, and trapping
Support activities for agriculture
and forestry

Mining
2111
2121
2123
2124
2125
2126
2127
2132
2133

Oil and gas extraction
Coal
Nonmetallic minerals
Iron ores
Gold and silver ores
Copper, nickel, lead, and zinc ores
Other metal ores
Support activities for oil and gas
operations
Support activities for mining, except
for oil and gas operations

Utilities
2211
2212
2213

Electric power generation,
transmission, and distribution
Natural gas distribution
Water, sewage, and other systems

Construction
2360
2370
2380

Construction of buildings
Heavy and civil engineering construction
Specialty trade contractors

3334
3335
3336
3339
3341
3342
3343
3344
3345
3346
3351
3352
3353
3359
3361
3362
3363
3364
3365
3366
3369
3370
3391
3399
4231

3111
3112
3113
3114

4232
4233
4234

3115
3116
3117
3118
3119
3121
3122
3130
3140
3150
3160
3210
3221
3222
3231
3242
3243
3244
3251
3252
3253
3254
3255
3256
3259
3261
3262
3271
3272
3273
3274
3279
3311
3312
3313
3314
3315
3321
3322
3323
3324
3325
3326
3327
3328
3329
3331
3332
3333

Page 12

5152
5171
5172
5174
5179
5182
5191

4235
4236
4237
4238
4239

Motor vehicles and motor vehicle
parts and supplies
Furniture and home furnishing
Lumber and other construction materials
Professional and commercial
equipment and supplies
Metal and mineral (except petroleum)
Electrical and electronic goods
Hardware, and plumbing and heating
equipment and supplies
Machinery, equipment, and supplies
Miscellaneous durable goods

Wholesale Trade, Nondurable Goods
4241
4242
4243
4244
4245
4246
4247
4248
4249

Paper and paper product
Drugs and druggists’ sundries
Apparel, piece goods, and notions
Grocery and related product
Farm product raw material
Chemical and allied products
Petroleum and petroleum products
Beer, wine, and distilled alcoholic beverage
Miscellaneous nondurable goods

Wholesale Trade, Electronic Markets
and Agents and Brokers
4251

Wholesale electronic markets and
agents and brokers

Retail Trade
4410
4420
4431
4440
4450
4461
4471
4480
4510
4520
4530
4540

Motor vehicle and parts dealers
Furniture and home furnishings
Electronics and appliance
Building material and garden
equipment and supplies dealers
Food and beverage
Health and personal care
Gasoline stations
Clothing and clothing accessories
Sporting goods, hobby, book, and music
General merchandise
Miscellaneous store retailers
Nonstore retailers

Transportation and Warehousing
4810
4821
4833
4839
4840
4850
4863
4868
4870
4880
4920
4932
4939

Air transportation
Rail transportation
Petroleum tanker operations
Other water transportation
Truck transportation
Transit and ground passenger
transportation
Pipeline transportation of crude oil, refined
petroleum products, and natural gas
Other pipeline transportation
Scenic and sightseeing transportation
Support activities for transportation
Couriers and messengers
Petroleum storage for hire
Other warehousing and storage

Information
5111
5112
5121
5122
5151

Newspaper, periodical, book, and
directory publishers
Software publishers
Motion picture and video industries
Sound recording industries
Radio and television broadcasting

Cable and other subscription
programming
Wired telecommunications carriers
Wireless telecommunications carriers,
except satellite
Satellite telecommunications
Other telecommunications
Data processing, hosting, and related services
Other information services

Finance and Insurance
5221
5223
5224
5229
5231
5238
5242
5243
5249
5252

Depository credit intermediation (Banking)
Activities related to credit intermediation
Nondepository credit intermediation
Nondepository branches and agencies
Securities and commodity contracts
intermediation and brokerage
Other financial investment activities and
exchanges
Agencies, brokerages, and other
insurance related activities
Insurance carriers, except life insurance
carriers
Life insurance carriers
Funds, trusts, and other financial vehicles

Real Estate and Rental and Leasing
5310
5321
5329
5331

Wholesale Trade, Durable Goods

Manufacturing
Animal foods
Grain and oilseed milling
Sugar and confectionery products
Fruit and vegetable preserving and
specialty foods
Dairy products
Meat products
Seafood product preparation and
packaging
Bakeries and tortillas
Other food products
Beverages
Tobacco
Textile mills
Textile product mills
Apparel
Leather and allied products
Wood products
Pulp, paper, and paperboard mills
Converted paper products
Printing and related support activities
Integrated petroleum refining and
extraction
Petroleum refining without extraction
Asphalt and other petroleum and
coal products
Basic chemicals
Resins, synthetic rubbers, and
artificial and synthetic fibers and
filaments
Pesticides, fertilizers, and other
agricultural chemicals
Pharmaceuticals and medicines
Paints, coatings, and adhesives
Soap, cleaning compounds, and
toilet preparations
Other chemical products and
preparations
Plastics products
Rubber products
Clay products and refractories
Glass and glass products
Cement and concrete products
Lime and gypsum products
Other nonmetallic mineral products
Iron and steel mills and ferroalloys
Steel products from purchased steel
Alumina and aluminum production
and processing
Nonferrous metal (except aluminum)
production and processing
Foundries
Forging and stamping
Cutlery and handtools
Architectural and structural metals
Boilers, tanks, and shipping containers
Hardware
Spring and wire products
Machine shops; turned products; and
screws, nuts, and bolts
Coating, engraving, heat treating,
and allied activities
Other fabricated metal products
Agriculture, construction, and mining
machinery
Industrial machinery
Commercial and service industry machinery

Ventilation, heating, air-conditioning,
and commercial refrigeration equipment
Metalworking machinery
Engines, turbines, and power
transmission equipment
Other general purpose machinery
Computer and peripheral equipment
Communications equipment
Audio and video equipment
Semiconductors and other
electronic components
Navigational, measuring, electromedical,
and control instruments
Manufacturing and reproducing
magnetic and optical media
Electric lighting equipment
Household appliances
Electrical equipment
Other electrical equipment and
components
Motor vehicles
Motor vehicle bodies and trailers
Motor vehicle parts
Aerospace products and parts
Railroad rolling stock
Ship and boat building
Other transportation equipment
Furniture and related products
Medical equipment and supplies
Other miscellaneous manufacturing

Real estate
Automotive equipment rental and leasing
Other rental and leasing services
Lessors of nonfinancial intangible assets,
except copyrighted works

Professional, Scientific, and Technical
Services
5411
5412
5413
5414
5415
5416
5417
5418
5419

Legal services
Accounting, tax preparation, bookkeeping,
and payroll services
Architectural, engineering, and related
services
Specialized design services
Computer systems design and related
services
Management, scientific, and technical
consulting services
Scientific research and development
services
Advertising, public relations, and related
services
Other professional, scientific, and
technical services

Management of Companies and Enterprises
5512
5513

Holding companies, except bank holding
companies
Corporate, subsidiary, and regional
management offices

Administrative and Support and Waste
Management and Remediation Services
5611
5612
5613
5614
5615
5616
5617
5619
5620

Office administrative services
Facilities support services
Employment services
Business support services
Travel arrangement and reservation
services
Investigation and security services
Services to buildings and dwellings
Other support services
Waste management and remediation
services

Educational Services
6110

Educational services

Health Care and Social Assistance
6210
6220
6230
6240

Ambulatory health care services
Hospitals
Nursing and residential care facilities
Social assistance

Arts, Entertainment, and Recreation
7110
7121
7130

Performing arts, spectator sports, and
related industries
Museums, historical sites, and similar
institutions
Amusement, gambling, and recreation
industries

Accommodation and Food Services
7210
7220

Accommodation
Food services and drinking places

Other Services
8110
8120
8130

Repair and maintenance
Personal and laundry services
Religious, grantmaking, civic, professional,
and similar organizations

Public Administration
9200

Public administration
FORM BE-577 (Rev. 1/2011)