2018 BE-11 Supporting Statement B 2018-07-03

SUPPORTING STATEMENT

BE-11, Annual Survey of U.S. Direct Investment Abroad

OMB Control Number 0608-0053

B. Collections of Information Employing Statistical Methods

1. Describe (including a numerical estimate) the potential respondent universe and any sampling or other respondent selection method to be used. Data on the number of entities (e.g. establishments, State and local governmental units, households, or persons) in the universe and the corresponding sample are to be provided in tabular form. The tabulation must also include expected response rates for the collection as a whole. If the collection has been conducted before, provide the actual response rate achieved.

The potential respondent universe for the BE-11 annual survey is derived from the 2014 Benchmark Survey of U.S. Direct Investment Abroad, BE-10, and consists of all U.S. persons (in the broad legal sense, including companies) that own 10 percent or more of the voting securities of an incorporated foreign business enterprise, or an equivalent interest in an unincorporated foreign business enterprise.

Sample selection for the U.S. parents and foreign affiliates reported in the annual survey is based on the size and degree of foreign ownership of the foreign affiliates. The size thresholds are stated in terms of total assets, sales or gross operating revenues, and net income after income taxes, whether positive or negative. If any of the three items exceeds the size threshold, then a report must be filed. The BE-11 annual survey has multiple survey forms. Estimates of the sample size and response rates below are based on recent BE-11 surveys.

BE-11 Universe, Sample, and Response Rate

	Number of entities	Percent of entities	Percent of assets
Universe:
U.S. parents	18,500	100%	100%
Foreign affiliates	88,200	100%	100%
Sample:
BE-11A (U.S. parents)	3,150	17%	92%
BE-11B/C/D (foreign affiliates):	26,700	30%	96%
BE-11B filers	25,000	28%	---
BE-11C filers	1,500	2%	---
BE-11D filers	200	~0%	---
Nonsample:
U.S. parents	15,350	83%	8%
Foreign affiliates	61,500	70%	4%
Expected response rate:
BE-11A	---	---	91%
BE-11B/C/D	---	---	89%

2. Describe the procedures for the collection, including: the statistical methodology for stratification and sample selection; the estimation procedure; the degree of accuracy needed for the purpose described in the justification; any unusual problems requiring specialized sampling procedures; and any use of periodic (less frequent than annual) data collection cycles to reduce burden.

In this information collection, more detailed data are collected for larger U.S. parents and foreign affiliates than for smaller ones. BEA estimates data for the smaller U.S. parents and foreign affiliates using statistical methods so that the level of detail BEA records is the same regardless of firm size. In general, the estimation will be accomplished by prorating data reported on all forms, such as total assets, among subcomponents that are not reported by smaller filers, using the distribution observed in the next higher size class of U.S. reporters or foreign affiliates.

Estimates for the nonsample portion of the universe and for missing reports will be derived by extrapolating forward their reported data from earlier years based on the year-to-year movement in the data reported by other companies. Thus, the estimates will cover the universe of U.S. parents and foreign affiliates. For additional information on BEA’s estimation methods please see the “Methodology of the 2014 Benchmark Survey of U.S. Direct Investment Abroad” and the “Introduction to the 2015 Annual Survey of U.S. Direct Investment Abroad Preliminary Data Publication” available on BEA’s web site.

3. Describe the methods used to maximize response rates and to deal with nonresponse. The accuracy and reliability of the information collected must be shown to be adequate for the intended uses. For collections based on sampling, a special justification must be provided if they will not yield "reliable" data that can be generalized to the universe studied.

Several steps will be taken to maximize response rates. In March of each year all companies will receive notification by mail of their obligation to file the BE-11 survey and a list of foreign affiliates for which data are required. BEA encourages respondents to file electronically but will also post PDF forms online that can be downloaded and filed by mail or fax. Any person specifically contacted by BEA must respond by filing either a completed survey or a Claim for Exemption. BEA has dedicated staff available to answer respondent questions via email or phone. Nonrespondents will be sent follow-up notices and contacted by survey staff to solicit a response; and in the event of continued nonresponse, will be referred to the Office of the General Counsel for further action, including possible referral to the Justice Department.

The response rates described in B.1., together with the estimation procedures described in B.2., provide information of sufficient accuracy and reliability for the intended purpose.

4. Describe any tests of procedures or methods to be undertaken. Tests are encouraged as effective means to refine collections, but if ten or more test respondents are involved OMB must give prior approval.

No tests were conducted (aside from giving respondents the opportunity to comment on proposed changes, as described in A.8., above).

5. Provide the name and telephone number of individuals consulted on the statistical aspects of the design, and the name of the agency unit, contractor(s), grantee(s), or other person(s) who will actually collect and/or analyze the information for the agency.

The survey is designed and conducted within BEA by the Direct Investment Division (DID). For further information, contact Patricia Abaroa, Chief, DID, via email at Patricia.Abaroa@bea.gov, or by phone at 301-278-9591.

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