BE-15(SF) - Short Form

Annual Survey of Foreign Direct Investment in the United States

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Annual Survey of Foreign Direct Investment in the United States

OMB: 0608-0034

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FORM

BE-15(SF)

(REV. 11/2006)

OMB No. 0608-0034: Approval Expires 10/31/2009

BEA Identification Number

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

DUE DATE: MAY 31, 2007
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/[email protected]

Telephone:

(202) 606-5577

FAX:

(202) 606-5319

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.
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

ZIP Code

Foreign Postal Code

1005 0

Copies of blank forms:

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

IMPORTANT
Please read the Instructions, starting on page 11, before completing this form. Definitions of key terms used in this
report are found starting on page 13. Insurance and real estate companies see Special Instructions on page 17.
• Who must report – See Instruction I.A. starting on page 11.
• Which form to file – See Instruction I.A.1 starting on page 11.
• Accounting principles – Use U.S. Generally Accepted Accounting Principles (U.S. GAAP) in completing Form
BE-15(SF) unless otherwise specified by a specific instruction. References in the instructions to Financial
Accounting Standards Board statements 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 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 starting on page 13.
• 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.

MANDATORY — 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).
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. These civil penalties are subject to inflationary
adjustments. Those adjustments are found in 15 CFR 6.4. 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).
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

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 13, estimates may
have been provided.

1000 0

Name

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(SF), 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

PLEASE CONTINUE ON PAGE 2

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BE-15(SF), Page 1, Pantone 470 Brown, 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 13.
Section A — 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

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 on pages 13 and 14.
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

Yes
No
If the answer is "Yes" – Do not complete this report unless exception 2e described in the consolidation
rules on page 14 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 on page 3 of that form. The BE-15 Supplement C can
be downloaded from our web site at: http://www.bea.gov/bea/surveys/fdiusurv.htm
If the answer is "No" – Complete this report in accordance with the consolidation rules on pages 13 and 14.
1

1
2

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 in
instruction 4 on page 14.

Month Day
1007

Year

This U.S. affiliate’s financial reporting year ended in calendar year 2006 on
Example – If the financial reporting year ended on March 31, report for the 12-month period ended March 31, 2006.
Section B — OWNERSHIP AND INDUSTRY CLASSIFICATION OF U.S. AFFILIATE
5. Did the U.S. business enterprise become a U.S. affiliate
during its fiscal year that ended in calendar year 2006?
1008 1

Month Day

Year

1009 1

Yes – If "Yes" – Enter date U.S. business enterprise became
a U.S. affiliate and see instruction 5 on page 14.
2
No
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.
1

6. Is the U.S. affiliate named on page 1 separately incorporated in the United States,
including its territories and possessions?
1011 1
1

1
2

Yes
No – Reporting rules for unincorporated affiliates are found in instruction 6 starting on page 14.
Report rules for real estate are found in instruction V.C. on page 17.

7. U.S. affiliates fully consolidated in this report – The consolidation rules are found on pages 13 and 14.
If this report is for a single 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 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 method of accounting. Except as noted in the
consolidation rules on pages 13 and 14, 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

Number – If number is greater than one, complete the Supplement A on page 7.
8. U.S. affiliates NOT consolidated – See instruction 8 on page 15.
Number of U.S. affiliates in which this U.S. affiliate has an ownership interest that ARE NOT fully
consolidated in this report.
1013 1
Number – If number is not zero, complete the Supplement B on page 9. 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
must notify the unconsolidated nonbank 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.
FORM BE-15(SF) (REV. 11/2006)

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PART I – IDENTIFICATION OF U.S. AFFILIATE – Continued
Ownership – Enter percent of ownership, in this U.S. affiliate, to a tenth of one percent, based on voting interest if an
incorporated affiliate or an equivalent interest if an unincorporated affiliate. "Voting interest" is defined in instructions 9-13
on page 15.
Foreign parent – A foreign parent is the FIRST person or entity
Country of incorporation
REPORTING PERIOD
outside the U.S. in a chain of ownership that has an investment
or organization, if a
business enterprise, or
(direct or indirect) in this U.S. affiliate.
residence, if an individual.
Ownership held directly by foreign parents of this affiliate –
Close FY 2005
Close FY 2006
For individuals, see
Give name of each foreign parent with direct ownership. (If more
instruction V.F.
than 2, continue on a separate sheet.)
on page 18.
(1)
(2)
1

1017

10.
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

(3)
3

BEA
USE
ONLY

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

11.

1063

1061

13. Ownership held directly by all other persons (do not list names)

1064

12.

TOTAL of ownership interests — Sum of items 9 through 13
100.0%
100.0%
14. 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.
14a. Enter name of foreign parent. If the foreign parent is an individual enter "individual."
0
3011

14b. Enter the foreign parent industry code, from the list of codes at the bottom of this page 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.
11
3018

15. For each foreign parent, furnish the name, country and industry code of the ultimate beneficial owner (UBO). If there is
more than one foreign parent, list each on a separate sheet and give the name of its UBO, and the UBO’s country and
industry codes.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 13 for
the complete definition of UBO.
15a. Is the foreign parent also the ultimate beneficial owner (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.
1

Yes – Skip to 15d.
No – Continue with 15b.
15b. 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.
3019

1
2

0
3021

15c. Enter country of UBO. For individuals, see instruction V.F. on page 18.

BEA USE ONLY

1
3022

15d. Enter the industry code of the UBO from the list of codes below. NOTE – The UBO industry code is based on the
consolidated world-wide activities of all majority-owned subsidiaries of the UBO. Select the industry code that best
reflects the consolidated world-wide sales of all majority-owned subsidiaries of the UBO.
1
3023

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

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.
16 Real estate (ISI code 5310)
01 Government and government-owned or -sponsored
enterprise, or quasi-government organization or agency
17 Information (ISI codes 5111–5191)
02 Pension fund — Government run
18 Professional, scientific, and technical services (ISI codes 5411–5419)
03 Pension fund — Privately run

19 Other services (ISI codes 1150, 2132, 2133, 5321, 5329, and 5611–8130)

04 Estate, trust, or nonprofit organization (that part of ISI
code 5252 that is estates and trusts)
05 Individual

Manufacturing, including fabricating,
assembling, and processing of goods:
20 Food (ISI codes 3111–3119)

Private business enterprise, investment
organization, or group engaged in:

21
22
23
24

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)
FORM BE-15(SF) (REV. 11/2006)

Base prints black

Beverages and tobacco products (ISI codes 3121 and 3122)
Pharmaceuticals and medicine (ISI code 3254)
Other chemicals (ISI codes 3251–3259, except 3254)
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)
Page 3

BE-15(SF), page 3, Pantone 470 Brown, 10%

PART I – IDENTIFICATION OF U.S. AFFILIATE – Continued
16. Major product(s) or service(s) of fully consolidated U.S. affiliate — Briefly describe the major
product(s) and/or service(s) of the U.S. affiliate. 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 0

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 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/surveys/2002be799printpdf
If you use fewer than four codes, you must account for total sales in items 17 through 19. 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 and losses on page 5, line 32b.
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. EXCLUDE all investment gains and losses. Report all
investment gains and losses as certain realized and unrealized gains and (losses) on page 5, line 32b.
Holding companies (ISI code 5512) should report total income including income (loss) from equity
investments in unconsolidated U.S. affiliates and all foreign entities, certain realized and unrealized gains
and losses, other income, plus sales and gross operating revenues, if any. Zero normally is NOT a
correct entry. 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 on page 5, line 32b.
Book publishers, printers, and Real Estate Investment Trusts — See instructions
for items 17–22 on page 15.

Sales

ISI code
(1)

17. Enter code with largest sales

1164

18. Enter code with 2nd largest sales

Bil.

1165

19. Enter code with 3rd largest sales

1166

20. Enter code with 4th largest sales

1167
2

21. Sales not accounted for above — Item 20 must have an entry if amounts are
entered on this line.
22. Total sales or gross operating revenues, excluding sales taxes —
Equals sum of items 17 through 21, column (2).
Remarks

1173
2

1
1174

PLEASE CONTINUE ON PAGE 5
BEA USE ONLY
1200 1

1201 1

1202 1

1203 1

FORM BE-15(SF) (REV. 11/2006)

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Page 4

BE-15(SF), page 4, Pantone 470 Brown, 10% and 100% tone

(2)
Mil. Thous. Dols.

PART II – SELECTED FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE
Report all amounts in thousands of U.S. dollars.
Section A — BALANCE SHEET ITEMS
NOTE — Foreign operations in which you own an interest of 20
percent or more, including those in which you own a majority
interest, are to be deconsolidated. Include all unconsolidated
businesses on an equity basis or, if less than 20 percent owned,
in accordance with FAS 115 or the cost method of accounting.

Balances
Close FY 2006
(1)
Bil.

Mil.

Thous. Dols.

23.

Total assets

2109

$
1

24.

Total liabilities

2114

Please check box if total
liabilities are zero.

25.

Total owners’ equity — Item 23 minus item 24

2120

Section B — OTHER FINANCIAL AND OPERATING DATA
Bil.

Amount
(1)
Mil. Thous. Dols.

26.

Net income (loss) — After provision for U.S. Federal, State, and local income taxes

27.

Total employee compensation for FY 2006 — Employees’ gross earnings (before payroll
deductions). Include all direct and in-kind payments by the employer to employees, and employer
expenditures for all employee benefit plans, including those required by government statute, those
resulting from collective bargaining contracts, or those that are voluntary. 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 instruction 27 on page 15 for more details of what to include on this line.
2253

28.

Expenditures for property, plant, and equipment for FY 2006 — INCLUDE all purchases by,
or transfers (at net book value) to, the U.S. affiliate of land, mineral and timber rights, and other
property, plant and equipment. Also INCLUDE capitalized and expensed exploration and
development expenditures. EXCLUDE expenditures made in prior years that are reclassified in the
current year. Also EXCLUDE land and other property, plant and equipment obtained through the
acquisition of or merger with another company during the year. DO NOT net out sales and other
dispositions of property, plant, and equipment from the expenditures reported on this line.

29.

2159

$
1

2390

Research and Development (R&D) expenditures for R&D performed BY the U.S. affiliate —
Report all 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. 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. EXCLUDE the cost of all
R&D funded by the U.S. affiliate but performed by others, such as the U.S. affiliate’s allocated share
of R&D performed by the foreign parent or foreign affiliates of the foreign parent.
2403
See instruction 29 on page 15 for more details of what to include on this line.

EXPORTS AND IMPORTS OF U.S. AFFILIATE
NOTE — Report amounts on a "shipped basis." See instruction 30–31 starting on page 15 for details of
what to include on these lines.
30.
31.

TOTAL EXPORTS, INCLUDING CAPITAL GOODS — Shipped by U.S. affiliate to
foreign persons (valued f.a.s. U.S. port) in the fiscal year that ended in calendar year 2006.
TOTAL IMPORTS, INCLUDING CAPITAL GOODS — Shipped to U.S. affiliate by
foreign persons (valued f.a.s. foreign port) and received in the fiscal year that ended in
calendar year 2006.

32a. Did the ownership (both direct and indirect) by ALL foreign
parents in the voting securities (or an equivalent interest) of
this U.S. affiliate EXCEED 50 percent as of the end of the U.S.
affiliate’s fiscal year that ended in calendar year 2006? "Voting
interest" is defined in instructions 9–13 on page 15.
1101 1
1

1
2

BEA USE ONLY

1
2502

$
1

2515

$
1

2598

Yes – Answer items 32b. through 32e.
No – Skip to item 33a on page 6.

NOTE: Complete items 32b. through 32e. ONLY if item 32a. is answered "Yes"
Bil.
1

32b. Certain realized and unrealized gains (losses), included in item 26, net income (loss).
Report at gross amount before income tax effect. See instruction 32b. on page 16 for details of
what to include on this line.

2151

32c. Income taxes – Provision for ALL U.S. Federal, State, and local income taxes. Include
income tax effect of certain realized and unrealized gains (losses) reported on line 32b.
Exclude production royalty payments.

2156

32d. Interest income from all sources (including from foreign parents and affiliates), after
deduction of taxes withheld at the source. Do not net against interest expense (item 32e).

2400

32e. Interest expense plus interest capitalized, paid or due to all payees (including
foreign parents and affiliates), before deduction of U.S. tax withheld by the
affiliate. Do not net against interest income (item 32d).

$
1

2401

$
1

PLEASE CONTINUE ON PAGE 6
FORM BE-15(SF) (REV. 11/2006)

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BE-15(SF), page 5, Pantone 470 Brown, 10% and 100%

2599

Amount
(1)
Mil. Thous. Dols.

PART II – SELECTED FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE
Report all amounts in thousands of U.S. dollars.
Section C — SCHEDULE OF EMPLOYMENT AND PROPERTY, PLANT, AND EQUIPMENT, BY LOCATION
33a. Copy your answer from item 32a on page 5 to the appropriate box below and follow the
applicable instructions.
1

Yes – Provide data for up to five primary states in which this affiliate has
reportable data. If the affiliate has operations in more than five states, sum the
data for the remaining states on line 44. Skip item 33b.

No – Answer item 33b. below.

33b. 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
fiscal year that ended in calendar year 2006?
1102 1

Yes – Provide data for up to ten primary states in which this affiliate has
reportable data. If the affiliate has operations in more than ten states, sum the
data for the remaining states on line 44.
No – Provide data for up to five primary states in which this affiliate has
reportable data. If this affiliate has operations in more than five states, sum the
data for the remaining states on line 44.

Complete the schedule below for the five or ten states, etc. in
which the U.S. affiliate has reportable data. If the U.S. affiliate
has activities in more than five or ten states, report those five
or ten states for which the gross book value of all land and
other property, plant, and equipment (column (5)) is largest. If
column (5) is zero or insignificant, use the number of
employees at the close of fiscal year 2005 (column (3)), to
determine the five or ten primary states.
In column (3), include all employees on the payroll at the end
of the fiscal year that ended in calendar year 2006, 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. Reporting employment (including how to report when
employment is subject to unusual variations) is discussed in
more detail in instructions 33–45 starting on page 16.
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 all
other employees on the payrolls of administrative offices or
other auxiliary units. Administrative office and other auxiliary
employees are defined in item 46 below.
In column (5), include land and other property, plant, and
equipment items, whether carried as investments, in fixed
asset accounts, or in other balance sheet accounts. Include
land held for resale, for investment purposes, and all other

land owned. Include land and other property, plant, and
equipment on capital lease from others, but exclude that on
capital lease 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 any
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, and institutional
buildings, and all undeveloped land.
The portion of
employees in
column (3) that
are
manufacturing
employees
(4)
Number

STATE — Enter name
BEA
USE
ONLY
(1)

Number of
employees at
close FY 2006

BEA
If applicable, enter name of U.S.
territory or possession, or U.S.
USE
offshore oil and gas sites, on the ONLY
lines below. Additional instructions
for items 33–45 are found starting
on page 16.
(2)

(3)
Number

Gross book value
(historical cost) of all land The portion of column (5)
and other property, plant,
that is commercial
and equipment wherever
property
carried on balance sheet,
FY 2006 closing balance.
Bil.

(5)
Mil.

Thous. Bil.

34.

(6)
Mil.

35.
36.
37.
38.
39.
40.
41.
42.
43.
44.

Employment and property,
plant, and equipment not
accounted for above

45.

TOTAL — Sum of items 34
through 44

2764
2700

46. Number of employees included in line 45 column 3 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 one unit.
FORM BE-15(SF) (REV. 11/2006)

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Page 6

BE-15(SF), page 6, Pantone 470 Brown, 10% and 100%

Number
3

1178

Thous.

Page 7

Base prints black

BE-15(SF), page 7, Pantone 470 Brown, 10%

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 listed 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 Form BE-15(SF). 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 that has been 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(SF) Supplement A (2006)

FORM
(REV. 11/2006)

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 listed in column (2)

5110

Page number

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

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

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 10/31/2009

FORM BE-15(SF) (REV. 11/2006)

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BE-15(SF), page 8, Pantone 470 Brown, 10%

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 listed in column (2) to
file income and payroll taxes

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

(4)

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

Page number

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)

Page 9

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BE-15(SF), page 9, Pantone 470 Brown, 10%

6221

6220

6219

6218

6217

6216

6215

6214

6213

6212
6

6211

(2)

(1)

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

BEA USE ONLY

(3)

Yes
No
2

No
1

Yes
2

No
2

Yes

No
1

Yes
2

No
2

Yes

No
1

Yes
2

No
1

Yes
2

No
2

Yes

(4)

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

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

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

Supplement B must be completed by a reporting affiliate which files a BE-15(SF) and has a direct ownership interest in a U.S. affiliate(s) which is (are) not fully consolidated. The number of
U.S. affiliates listed below must agree with item 8, Part I, of BE-15(SF). 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 that has been updated to show any additions, deletions, or other changes.

U.S. DEPARTMENT OF COMMERCE
BE-15(SF) 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

FORM
(REV. 11/2006)

–

(5)

Employer Identification Number
used by U.S. affiliate listed 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(SF),
holds in the U.S. affiliate named
in column (2). — Enter percentage
to nearest tenth.
(6)

OMB No. 0608-0034: Approval Expires 10/31/2009

FORM BE-15(SF) (REV. 11/2006)

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Page 10

BE-15(SF), page 10, Pantone 470 Brown, 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 which is not listed in Supplement A

BEA USE ONLY

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

(3)

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

Yes

No
1

Yes
2

No
1

Yes
2

No
2

Yes

No
1

Yes
2

No
1

Yes
2

No
1

Yes
2

No
2

Yes

(4)

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

–

(5)

Employer Identification Number
used by U.S. affiliate listed 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(SF), 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
BE-15(SF) INSTRUCTIONS
NOTE: Instructions in section IV. are cross referenced by number to the items located on pages 2 to 10 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).

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.

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 by May 31, 2007, whichever is applicable.

Real estate – See instruction V.C. on page 17 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 below and
the flow chart on page 12 to determine if your U.S. business is
required to file Form BE-15(SF).

Respondent Burden – Public reporting burden for this short form
is estimated to vary from 1.5 to 10 hours per response, with an
average of 4 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.
I. REPORTING REQUIREMENTS

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 13
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(SF).
File Form BE-15 Supplement C by May 31, 2007.

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 12, OR read the following section and sections A.2. through
A.5. on page 12.

b. Is this U.S. affiliate a bank or bank holding company?
Yes – You are not required to file Form BE-15(SF). File
Form BE-15 Supplement C by May 31, 2007.
No – Continue with question c.

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 12. 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.

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 exception e to the consolidation rules apply to you?
(The consolidation rules are found in instruction IV.2. on
pages 13 and 14.)
Yes – Continue with question e.

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.

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.

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.

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(SF). File
Form BE-15 Supplement C by May 31, 2007.

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.

f. Did you receive a request in writing from BEA to file Form
BE-15(EZ)?
Yes – File Form BE-15(EZ) by May 31, 2007.
No – Continue with question g.

Calculation of Foreign Ownership

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.)

Foreign person A
Foreign
U.S.

100%

Yes – Continue with question h.

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

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?

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

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

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

FORM BE-15(SF) (REV. 11/2006)

Page 11

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

I. REPORTING REQUIREMENTS — Continued
Which Form to File?
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

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.
3. Form BE-15(SF) – Annual Survey of Foreign Direct
Investment in the United States – 2006 (Short Form)

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

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
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 exception e to the consolidation
rules apply? (The consolidation rules are
found in instruction IV.2. on pages 13
and 14.)

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

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

File Form BE-15
Supplement C

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

Yes

File Form
BE-15(EZ)

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 (see
I.B., below) from filing Form BE-15(LF), BE-15(SF), and
BE-15(EZ); and

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).
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).

Complete Form BE-15(EZ) ONLY if you have been
instructed to do so by BEA.
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 17), 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.

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

FORM BE-15(SF) (REV. 11/2006)

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 in writing to do otherwise. Those holdings not
aggregated must be reported separately. Real estate is
discussed more fully in instruction V.C. on page 17.

Page 12

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.

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.

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.

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.
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. 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. 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.
L. 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.
M. 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.
N. 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.
O. U.S. corporation means a business enterprise incorporated
in the United States.
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.

FORM BE-15(SF) (REV. 11/2006)

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 unless otherwise specified 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(SF)
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 items 30 and 31, exports and imports of U.S.
affiliate on a shipped basis, and items 34 through 45, 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. 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.
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 6 of this form.
PART I
Section A – 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.
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 12 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 of the U.S. affiliate on the
Supplement B.
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 property, plant
and equipment or employees located in that country.

Page 13

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.

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.

IV. INSTRUCTIONS FOR SPECIFIC SECTIONS OF THE
REPORT FORM – Continued
b. Do not consolidate banking activities. If the nonbank
U.S. affiliate reporting on the Form BE-15(SF) 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(SF). Banks are
not required to file a separate BE-15 report, however, list
unconsolidated U.S. banking affiliates on the Supplement B.
Include on Form BE-15(SF) any banking operations owned
20 percent or more (including those that are majorityowned) 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. on this page 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(SF) 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.

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.
Section B – OWNERSHIP AND INDUSTRY
CLASSIFICATION OF U.S. AFFILIATE
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. 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 12 and Instruction V.C. on
page 17 for details.
(2) Indirectly owned – Except as noted in the exceptions
to the consolidation rules on pages 13 and 14, 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.

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(SF) or BE-15(LF). (See diagram below.)

Foreign person B

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.

Foreign person A

Foreign
U.S.

100%
U.S. affiliate X

30%

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.

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.

(1) General Partnerships
Determination of voting interest – "Voting interest" is
defined in instructions 9-13 on page 15. 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.

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.

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.

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.

(2) Limited Partnerships
(a) Determination of voting interest – "Voting
interest" is defined in instructions 9-13 on page 15.
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.

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.
(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.

FORM BE-15(SF) (REV. 11/2006)

Page 14

IV. INSTRUCTIONS FOR SPECIFIC SECTIONS OF THE
REPORTED FORM — Continued
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" on page 14.
(b) Consolidation Rules
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?"
c. Limited Liability Companies (LLCs)
Determination of voting interest – "Voting interest" is
defined in instruction 9-13 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 be 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.
8. U.S. affiliates NOT consolidated – Report equity
investments in U.S. business enterprises that are not
consolidated and that are 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.
You may report immaterial investments using the cost method
of accounting if this treatment is consistent with your normal
reporting practice. Report investments owned less than 20 percent
in accordance with FAS 115 or the cost basis 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(SF) on the Supplement B.
9-13
Ownership
Voting interest and Equity interest

Part II – SELECTED FINANCIAL AND OPERATING DATA
OF U.S. AFFILIATE
Section B – OTHER FINANCIAL AND OPERATING DATA
27. Total employee compensation – Base employee
compensation on payroll records related to activities during
the reporting period. Employee compensation consists of:
(1) 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.
(2) 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.
29. Research and development expenditures – 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);

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
instruction 6b(1) and 6b(2)(a) starting on page 14 for
information about determining the voting interest for
partnerships. See instruction 6c 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 6b(2) starting on page 14 for information about
limited partnerships.
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
shares 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.
17-22
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).

FORM BE-15(SF) (REV. 11/2006)

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 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 be classified in ISI code
5512 (holding companies, except bank holding companies).

Page 15

b. Apply existing knowledge to problems involved in the
creating 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).
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.
30-31
EXPORTS AND IMPORTS OF U.S. AFFILIATE
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, 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.
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 billed or charged. The “charged basis may
be used if there is no material difference between it and the
"shipped" basis.
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 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.
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.

IV. INSTRUCTIONS FOR SPECIFIC SECTIONS OF THE
REPORTED FORM — Continued
Packaged general use computer software – INCLUDE exports
and imports of packaged general use computer software. Value
such exports and imports at full transactions 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
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 software that is transmitted
electronically rather than physically shipped. Also, EXCLUDE
negotiated licensing fees for software to use on networks.
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, but simply
transmit for others via a pipeline.
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.
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.
Capital goods — Include capital goods (e.g., manufacturing equipment 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.
In-transit goods – Exclude the value of any goods that are
in-transit. 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 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).
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.
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.
NOTE: Goods shipped by an independent carrier or a freight
forwarder to or from the United States on behalf of and at the
expense of a U.S. affiliate are shipments by the U.S. affiliate.
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 costs, 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.
32.b. 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. Report
gains (losses) resulting from:
a. Sales or other dispositions of financial assets, including
investment securities; 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 below;

i. Change in accounting estimate of provision for expected
stock option forfeitures under the inception method as
defined by FAS 123.
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 32b:
(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 gains only in the ending
owners’ equity balance (line 25).
EXCLUDE income from explicit fees and commissions from
item 32b. Include income from these fees and commissions as
part of your income from operations on lines 17 through 22.
(2) Real estate companies – Include in item 32b:
(a) Impairment losses as defined by FAS 144, and
(b) Goodwill impairment as defined by FAS 142.
EXCLUDE the revenues earned and expense incurred from the
sale of real estate you own. Such revenues should be reported
as part of operating income on page 4.
Section C – SCHEDULE OF EMPLOYMENT AND PROPERTY,
PLANT, AND EQUIPMENT, BY LOCATION
33-45
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.
Column (3) Number of employees – 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. If given, the
average should be the average 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.
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.
Exception: If the duty assignment is for more than one year, show
the employee as being located in Texas, not California.
Foreign – Except as noted below, exclude employees, land, and
other property, plant, and equipment, located outside of the United
States from the Schedule of Employment and Property, Plant, and
Equipment, By Location.

b. Sale or disposition of land, other property, plant and
equipment, or other assets, and FAS 144 impairment
losses. DO NOT include gains or losses from the sale of
inventory assets in the ordinary course of trade or
business. Real estate companies, see special
instructions below;
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;
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 17 through 22;
f. Remeasurement of the U.S. affiliate’s foreign-currencydenominated 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;
h. The cumulative effect of a change in accounting
principle; and

FORM BE-15(SF) (REV. 11/2006)

Page 16

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 under the category "foreign."
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 under the category "foreign."
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 under the
category "foreign." 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."
e. Use the category "foreign" 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 books
(i.e., not carried on the books of a foreign affiliate owned by
the U.S. affiliate).

If the investment property has a name, such as Sunrise
Apartments, the name and address on page 1 of the BE-15
survey forms might be:

IV. INSTRUCTIONS FOR SPECIFIC SECTIONS OF THE
REPORTED FORM — Continued
Other property, plant, and equipment – Use the category
"other property, plant, and equipment" 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
allocated among specific states, (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, owned by the domestic U.S. affiliate, and
carried on its books.

Sunrise Apartments
c/o ABC Real Estate
120 Major Street
Miami, FL XXXXX
There are questions throughout the Form BE-15(SF) 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:

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. non-trusteed or free account
assets, and 2. nonadmitted assets such as furniture and
equipment, agents’ debit balances, and all receivables
deemed to be collectible.

1. If the foreign interest in the U.S. affiliate is directly held by
the foreign person then a Form BE-15(SF) or BE-15(LF)
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(SF)
or BE-15(LF) of the owning affiliate.

Item on Form BE-15(SF):
22

TOTAL SALES – Include items such as earned
premiums, annuity considerations, gross investment
income, and items of a similar nature. Exclude income
from unconsolidated affiliates. Also exclude income that
is to be reported in item 32.b., certain realized and
unrealized gains (losses).

TOTAL ASSETS – Include current items such as agents’
balances, uncollected premiums, amounts recoverable
from reinsurers, and other current notes and accounts
receivable (net of allowances for doubtful items) arising
from the ordinary course of business.

TOTAL LIABILITIES – 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.

TOTAL OWNERS’ EQUITY – Include mandatory
securities valuation reserves that are appropriations of
retained earnings.

32.b. CERTAIN REALIZED AND UNREALIZED GAINS
(LOSSES) – See special instructions for item 32.b. on
page 16 of this form.

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

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 23 and 24 of Form BE-15(SF).
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.

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.

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 12
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 non-aggregated 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. Non-aggregated
reports should be filed as a group and you should inform BEA
that they are all for one owner.

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.

On page 1, name and address of U.S. business enterprise,
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, on page 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

FORM BE-15(SF) (REV. 11/2006)

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(SF) or BE-15(LF) 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.

Page 17

V. SPECIAL INSTRUCTIONS — Continued
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.

D. Assistance – For assistance, telephone (202) 606-5577,
FAX (202) 606-5319, or send e-mail to be12/[email protected].
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 2006 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.

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.

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.)

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.
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 such 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.

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

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.

Direct reports filed by private delivery service to:

VI. FILING THE BE-15
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, 2007. 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 12,
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 online go to:
www.bea.gov/bea/surveys/fdiusurv.htm
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/[email protected]. 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.

FORM BE-15(SF) (REV. 11/2006)

Page 18

U.S. Department of Commerce
Bureau of Economic Analysis
BE49(A)
Shipping and Receiving Section, M100
1441 L Street, NW
Washington, DC 20005
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).

File Type	application/pdf
File Modified	2006-12-04
File Created	2006-11-30