BE-12-Bank BE-12 Bank

Benchmark Survey of Foreign Direct Investment in the United States - 2007

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Benchmark Survey of Foreign Direct Investment in the United States - 2007

OMB: 0608-0042

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FORM

BE-12 BANK

(REV. 9/2007)

BEA Identification Number

OMB No. 0608-0042: Approval Expires xx/xx/xxxx

MANDATORY — CONFIDENTIAL

2007 BENCHMARK SURVEY OF FOREIGN DIRECT INVESTMENT
IN THE UNITED STATES
(BANK FORM)
A. 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.

DUE DATE: MAY 31, 2008
ELECTRONIC
FILING:

Go to www.bea.gov/efile for details

Name of U.S. affiliate
1002 0

OR
MAIL
REPORTS
TO:

U.S. Department of Commerce
Bureau of Economic Analysis
BE-49(A)
Washington, DC 20230

DELIVER
REPORTS
TO:

U.S. Department of Commerce
Bureau of Economic Analysis, BE-49(A)
Shipping and Receiving Section, M100
1441 L Street, NW
Washington, DC 20005
OR

c/o (care of)
1010 0

Street or P.O. Box
1003 0

City and State
1004 0

ZIP Code

FAX
REPORTS
TO:

1005 0

Foreign Postal Code

(202) 606-5319
B. Location of U.S. affiliate – If the mailing address in item A is in care
of someone other than the U.S. affiliate, give the name and location of
the primary U.S. headquarters of the affiliate.

OR
be12/[email protected]
(See "NOTE" near the bottom
of this page.

EMAIL
REPORTS
TO:

Name of U.S. affiliate
1300 1

Street or P.O. Box

ASSISTANCE
Email:

be12/[email protected]

Telephone:

(202) 606-5577

FAX:

(202) 606-5319

Copies of
blank forms:

www.bea.gov/fdi

1301 1

City and State
1302 1

ZIP Code
1303 1

Definitions of key terms – See pages 19 and 20.

IMPORTANT
Please read the Instructions starting on page xx before completing this form.
• Who must file Form BE-12 BANK – Form BE-12 BANK must be filed by a U.S. affiliate if (1) it is a bank, bank holding
company, or financial holding company and (2) at least one of the following three items – total assets (do not net out
liabilities), 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 $15 million (positive or negative) at the end
of, or for, its fiscal year that ended in calendar year 2007. If you do not meet these filing criteria see instruction I.A.
starting on page x to determine which form to file.
• Accounting principles – Use U.S. Generally Accepted Accounting Principles in completing Form BE-12 BANK
unless requested to do otherwise by a specific instruction. References in the instructions to Financial Accounting
Standards Board statements are referred to as "FAS."
• U.S. affiliate’s 2007 fiscal year – The affiliate’s financial reporting year that had an ending date in calendar year 2007.
• Consolidated reporting – A U.S. affiliate must file on a fully consolidated domestic U.S. basis, including in the
consolidation ALL U.S. affiliates, BANK AND NONBANK, 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 X.
• 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:

MANDATORY
CONFIDENTIALITY
PENALTIES

佡

1000 0

1030 0

Authorized official’s signature

1031 0

FAX NUMBER

Thous. Dols.

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 estimates may have
been provided where data are not available from customary accounting
records or precise data could not be obtained without undue burden.

Address 1029 0

TELEPHONE
NUMBER

Mil.

This survey is being conducted under the International Investment and Trade in Services Survey Act
(P.L. 94-472, 90 Stat. 2059, 22 U.S.C. 3101-3108, as amended). The filing of reports is mandatory and
the Act provides that your report to this Bureau is confidential. Whoever fails to report may be
subject to penalties. See page x for more details.

PERSON TO CONSULT CONCERNING QUESTIONS ABOUT THIS
REPORT — Enter name and address
Name

Bil.

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-12 BANK, including questions that may contain
information about your company that you may consider confidential? NOTE: The Internet is not a secure means of transmitting
information unless it is encrypted. If you choose to communicate with BEA via electronic mail, BEA cannot guarantee the privacy of the
information while transmitted, but will treat information we receive as confidential in accordance with Section 5(c) of the International
Investment and Trade in Services Survey Act. Be advised that making inquiries regarding this survey via electronic mail may divulge your
participation in this survey.
1027

1
1

1
2

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

E-mail address (Please print)
0
1028

PLEASE CONTINUE ON PAGE 2

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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 x.
1. What financial reporting standards will be used to complete this BE-12 report? NOTE:
Unless it is highly burdensome or not feasible, the BE-12 report should be completed using
U.S. Generally Accepted Accounting Principles (U.S. GAAP).
1399 1
1

1
2

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

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

2. Consolidated reporting by the U.S. affiliate – The consolidation rules are found on pages xx and xx.
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

If the answer is "Yes" – Do not complete this report unless exception 2b described in the consolidation
rules on page xx applies. If this exception does not apply, please forward this BE-12 survey packet to the
U.S. business enterprise owning your company more than 50 percent, and notify BEA of the action taken
by filing a BE-12 Claim For Not Filing with item e completed on page 3 of that form. The BE-12 Claim
For Not Filing can be downloaded from our web site at: www.bea.gov/fdi
If the answer is "No" – Complete this report in accordance with the consolidation rules on pages xx and xx.
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 x.

Month Day
1007

Year

This U.S. affiliate’s financial reporting year ended in calendar year 2007 on
Example – If the financial reporting year ended on March 31, report for the 12-month period ended
March 31, 2007.
5. Did the U.S. business enterprise become a U.S. affiliate
during its fiscal year that ended in calendar year 2007?
1008 1
1

1
2

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

Month Day

Year

1009 1

NOTE – For a U.S. business enterprise that became a U.S. affiliate during its fiscal year that ended
in calendar year 2007, leave the close FY 2006 data columns blank.
6. Is the U.S. affiliate named on page 1 separately incorporated in the United States,
including its territories and possessions? Mark "No" if the U.S. affiliate is a branch or agency
of a foreign bank.
1011 1
1

1
2

Yes
No

7. U.S. affiliates fully consolidated (or, in the case of branches/agencies, aggregated) in this report –
U.S. branches and agencies, directly owned by the foreign parent, that are aggregated on this report should be
counted separately and listed separately on the Supplement A to this form. See Example A under instruction
IV.2 on page x at the back of this form.
U.S. branches and agencies, owned by a U.S. bank affiliate, should be consolidated on this report but not
counted separately and not listed separately on the Supplement A to this form. See Example B under
instruction IV.2 on page x at the back of this form.
1012

Number – If number is greater than one, complete the Supplement A on page x.
8. U.S. affiliates NOT fully consolidated – See instruction x on page x.
1013 1

Number – If number is not zero, complete the Supplement B on page x. 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 (Accounting for Certain Investments in Debt and
Equity Securities) or the cost basis, and must notify the unconsolidated U.S. affiliates of their
obligation to file a Form BE-12(LF), BE-12(SF), BE-12 BANK, or BE-12 Mini in their own names.

FORM BE-12 BANK (REV. 9/2007)

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PART I – IDENTIFICATION OF U.S. AFFILIATE – Continued
9. Does this U.S. affiliate own any foreign affiliates or operations?
1014 1
1

1
2

Yes If "Yes" – DO NOT consolidate foreign operations. Foreign affiliates or operations in which you own
No an interest of 20 percent or more, including those in which you own a majority interest, are to be
deconsolidated and reported using the equity method of accounting. If your ownership interest is
less than 20 percent, foreign affiliates or operations are to be reported in accordance with FAS 115
(Accounting for Certain Investments in Debt and Equity Securities) or the cost method of accounting.
Reporting rules for foreign affiliates or operations are found in the instruction x starting on page x.
U.S. affiliate
U.S.
Foreign
Foreign affiliates or operations
owned by the U.S. Affiliate

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

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 instruction 79 on page xx.
Foreign parent – A foreign parent is the FIRST person or entity outside the U.S. in a chain of ownership that has a 10
percent or more voting interest (direct or indirect) in this U.S. affiliate.
Ownership held directly by foreign parents of this U.S.
affiliate – Give name of each foreign parent with direct
ownership. (If more than 2, continue on a separate sheet.) See
example 1 below for an illustration of ownership held directly by
a foreign parent.

REPORTING PERIOD
Country of incorporation
or organization (if a
business enterprise) or
residence, if an
Close FY 2007 Close FY 2006
individual. For
individuals, see
instruction V.B. on page x.
(1)
(2)
1

10.

2
. %

1017
1

11.
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 with direct ownership in this U.S.
affiliate. (If more than 2, continue on a separate sheet.) See
example 2 below for an illustration of ownership held indirectly
by a foreign parent.

(3)
3

. %
2

. %

1018

BEA
USE
ONLY

3
. %

Country of foreign
parent of U.S.
affiliate

12.

2
. %

1063
1

13.

. %
1

3
. %

2
. %

. %

100.0%

1061

TOTAL of ownership interests –
Sum of items 10 through 13

. %
2

1064

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

PLEASE CONTINUE WITH QUESTION 15 ON PAGE 4
EXAMPLES OF DIRECT AND INDIRECT FOREIGN PARENTS
Example 1 – Ownership held directly by a foreign parent
Foreign company X

Foreign company Y is the foreign
parent because it is the first owner
located outside the U.S. in a chain of
ownership that owns 10 percent or
more of the U.S. affiliate.

Foreign company Y
(Foreign Parent)

10 to 100%
Foreign
United States
U.S. affiliate

Example 2 – Ownership held indirectly by a foreign parent through another U.S. affiliate
Foreign Parent

U.S. affiliate B is indirectly owned by
the foreign parent through U.S.
affiliates A.

10 to 100%
Foreign
United States
U.S. affiliate A

10 to 100%
U.S. affiliate B
NOTE: Arrows connecting boxes represent direction of ownership
FORM BE-12 BANK (REV. 9/2007)

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PART II – SELECTED FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE
15. 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.
1163 0

Industry classification and Total Sales or Gross Operating Revenues
of Fully Consolidated U.S. Affiliate
Column (1) – ISI Code – 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, 2007. A copy of this guide can be found on our web site at: www.bea.gov/naics2007
If you use fewer than four codes, you must account for total sales in items 16 through 18. 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).
Column (2) – Total sales or gross operating revenues, excluding sales taxes – INCLUDE interest
revenues at gross amounts. DO NOT net interest revenues against interest expenses. 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 6 item 37.
EXCLUDE all investment gains and losses and gains and losses from derivative instruments. Report such gains
and losses as certain realized and unrealized gains and losses on page 6 item 37.
Total sales or gross
operating revenues
(2)
Bil.
Mil. Thous. Dols.

ISI code
(1)
1

16. Depository credit intermediation (Banking)

5221

1164
1

17. Non-depository branches and agencies

5229

1165

18. Enter other code with largest sales or gross operating revenues

1166

19. Enter other code with next largest sales or gross operating revenues

1167
2

20. Sales or gross operating revenues not accounted for above

1173
1

21. TOTAL SALES OR GROSS OPERATING REVENUES –
Equals sum of items 16 through 20, column (2).

1174

2
$

22. 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 2007? "Voting interest" is defined in instruction 79 on page xx.
1101 1
1

Yes – Answer items 23 through 102.

No – Skip to item 42 on page 7.
EXAMPLE OF FOREIGN PARENT GROUP
Foreign Company X

Foreign

>50%

Foreign Parent

Foreign company Y

Foreign companies X and Y
along with the foreign parent
comprise the foreign parent
group in this example.

10 to 100%

United States
U.S. affiliate

NOTE: Arrows connecting boxes represent direction of ownership

Foreign parent 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.
The term "person" in the above paragraph is used in the broad legal sense and includes companies.
See instruction II.C. on page xx for the complete definition of person.

FORM BE-12 BANK (REV. 9/2007)

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PART II – SELECTED FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE – Continued
Report all amounts in thousands of U.S. dollars.
NOTE: Complete items 23 through 41 ONLY if item 22 is answered "Yes."
Skip to item 42 on page 7 if item 22 is answered "No."

Amount
(1)

DISTRIBUTION OF SALES OR GROSS OPERATING REVENUES
Distribute sales or gross operating revenues among three categories — sales of goods, sales of
services, and investment income.

Bil.

Mil.

Thous. Dols.

23. TOTAL SALES OR GROSS OPERATING REVENUES, EXCLUDING SALES TAXES —
Equals item 21 column 2, and also sum of items 24 through 26

2243

$
1

24. Sales of Goods

2244

$
1

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

2245

$
1

26. Sales of Services, Total — Sum of items 27 through 30

2246

$
1

27.

To U.S. persons

28.

To foreign parent group. See example at the bottom of page 4 for an illustration
of foreign parent group.

29.

2247
1
2248
1

To foreign affiliates owned by this U.S. affiliate. See item 9 at the top of page 3 for
an illustration of foreign affiliates owned by the U.S. affiliate.

2249
1

30.

To other foreign persons

2250

INSURANCE INDUSTRY CODES 5243 AND 5249 — Premiums earned, certain policy fees, and losses incurred
Insurance related activities are covered by industry codes 5243 (Insurance carriers, except life insurance
carriers) and 5249 (life insurance carriers).
31. Of the total sales and gross operating revenues reported on line 21, column 2, were any
of the sales or revenues generated by insurance related activities?
1
1180
1

1
2

Yes – Answer items 32 and 33
No – Skip to item 34

Amount
(1)

NOTE: Complete items 32 and 33 ONLY if item 31 is answered "Yes."

Bil.
1

32. Premiums earned — Report premiums, gross of commissions, included in revenue during the
reporting year. Calculate as direct premiums written (including renewals) net of cancellations, plus
reinsurance premiums assumed, minus reinsurance premiums ceded, plus unearned premiums at the
beginning of the year, minus unearned premiums at the end of the year. EXCLUDE all annuity
premiums. Also EXCLUDE premiums and policy fees related to universal and adjustable life, variable
and interest-sensitive life, and variable-universal life polices.
1181
33. Losses incurred — Report losses incurred for the insurance products covered by question 32.
EXCLUDE loss adjustment expenses and losses that relate to annuities. Also EXCLUDE losses related
to universal and adjustable life, variable and interest-sensitive life, and variable-universal life policies.
For property and casualty insurance, calculate as net losses paid during the reporting year, minus
net unpaid losses at the beginning of the year, plus net unpaid losses at the end of the year. In the
calculation of net losses, include losses on reinsurance assumed from other companies and exclude
losses on reinsurance ceded to other companies. Unpaid losses include both case reserves and
losses incurred but not reported.
For life insurance, losses reflect policy claims on reinsurance assumed or on primary insurance sold,
minus losses recovered from reinsurance ceded, adjusted for changes in claims due, unpaid, and in
course of settlement.
1182

$
1

34. Interest income from all sources (including foreign parents and affiliates), after
deduction of taxes withheld at the source. Do not net against interest expense (item 35).

2400

$
1

35. 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 34).

2401

36. Income from equity investments in unconsolidated U.S. affiliates and all foreign entities –
Report equity in earnings during the reporting period for all U.S. and foreign investments included
on the equity basis. For investments owned less than 20 percent and not subject to FAS 115
(Accounting for Certain Investments in Debt and Equity Securities), report dividends received.
2150

$
1

PLEASE CONTINUE ON PAGE 6

BEA USE ONLY

2598

BEA USE ONLY
1200 1

1201 1

1202 1

1203 1

FORM BE-12 BANK (REV. 9/2007)

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Thous. Dols.

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

NOTE: Complete items 23 through 41 ONLY if item 22 is answered "Yes."
Skip to item 42 on page 7 if item 22 is answered "No."
Amount

37. 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.

(1)
Bil.

Report at gross amount before income tax effect. Include tax effect in item 39 below. Report
gains (losses) resulting from:
a. Sales or other disposition of financial assets, including investment securities; FAS 115
(Accounting for Certain Investments in Debt and Equity Securities) holding gains (losses) on
securities classified as trading securities; FAS 115 impairment losses; and gains and losses
derived from derivative instruments. Dealers in financial instruments (including securities,
currencies, derivatives, and other financial instruments) and finance and insurance companies,
see special instructions on page x;
b. Sales or disposition of land, other property, plant and equipment, or other assets, and FAS 144
(Accounting for the Impairment or Disposal of Long-lived Assets) impairment losses. EXCLUDE
gains or losses from the sale of inventory assets in the ordinary course of trade or business.
c. Goodwill impairment as defined by FAS 142 (Goodwill and Other Intangible Assets);
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 16
through 21;
f. Remeasurement of the U.S. affiliate’s foreign-currency-denominated assets and liabilities due to
changes in foreign exchange rates during the reporting period;
g. Extraordinary, unusual, or infrequently occurring items that are material. INCLUDE losses from
accidental damage or disasters, after estimated insurance reimbursement. INCLUDE other
material items, including writeups, writedowns, and writeoffs of tangible and intangible assets;
gains (losses) from the sale or other dispositions of capital assets; and gains (losses) from the
sale or other dispositions 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
i. Change in accounting estimate of provision for expected stock option forfeitures under the
inception method as defined by FAS 123 (Share-based Payment).

2151

$
1

38. Depreciation expense

2392

39. Income taxes – Provision for U.S. Federal, State, and local incomes taxes. Include the
income tax effect of certain realized and unrealized gains (losses) reported on line 37.
Exclude production royalty payments.

$
1

2156

40. Other taxes and non-tax payments (EXCLUDING income and payroll taxes) — Amount paid or
accrued for the year, net of refunds or credits, to U.S. Federal, State, and local governments, their
subdivisions and agencies for —
• Sales, consumption, and excise taxes collected by you on goods and services you sold
• Premium taxes paid by insurance companies
• Property and other taxes on the value of assets and capital
• Any remaining taxes (other than income and payroll taxes)
• Non-tax liabilities (other than for purchases of goods and services) such as —
• Import and export duties
• Production royalties for natural resources
• License fees, fines, penalties, and similar items

2402

41. Cash items – Deposits in financial institutions and other cash items that are included in total
assets on your balance sheet. Do NOT include overdrafts as negative cash. Note – Although
including certificates of deposit (CDs) in CASH is permitted by generally accepted accounting
principles, exclude CDs and other deposits of the U.S. affiliate held by the foreign parent
group.
PLEASE CONTINUE WITH ITEM 42 ON PAGE 7

FORM BE-12 BANK (REV. 9/2007)

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2101

$
1

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2599

Mil.

Thous. Dols.

PART II – SELECTED FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE – Continued
Report all amounts in thousands of U.S. dollars
CROSS-BORDER SERVICES TRANSACTIONS
42. Did this U.S. affiliate receive payments or credits from, or make payments or credits to,
persons or entities located outside of the United States for any of the items listed below?
xxxx

Yes

• Royalties, license fees, and other fees for the use or sale of intangible property
• Services including but not limited to: accounting, advertising, computer, construction and
related services, consulting, data base, financial, insurance, legal, management, operational
leasing, public relations, research and development.
BALANCE SHEET ITEMS (43–49)
Report income or losses accumulated at a Branch or Agency, but not yet remitted or reimbursed, as part
of owners’ equity, not as receivables or payables. If you are a Branch or Agency, do not net out liabilities
and receivables to related parties.
Report on the basis of audited statements, or internal books if an independent audit is not performed. Do
not report on the basis used for the Call Reports to the Federal Reserve (FFIEC-002 or FFIEC-041).
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
(Accounting for Certain Investments in Debt and Equity Securities) or the
cost method of accounting.
43. Total assets (including cash)

2109

44. Total liabilities

2114

• OWNERS’ EQUITY ITEMS – Unincorporated affiliates see additional
instructions for 45–49 on page x at the back of this form.
45. Capital stock (common and preferred, voting and nonvoting), contributed capital, and additional paid-in capital
46. Retained earnings (deficit)

(1)

47b. All other components

2127

2128

Mil.

Close FY 2006
(Unrestated)

(1)

(2)

Mil.

Thous. Dols. Bil.

$
2

2129

2132

Mil.

Thous. Dols.

Close FY 2006
(Unrestated)

Close FY 2007

Bil.

Close FY 2007

1
2131

47. Accumulated other
comprehensive
income (loss)
47a. Translation adjustment
component

2130

BALANCES

(2)

Thous. Dols. Bil.

Mil.

47c. Total accumulated other comprehensive
income (loss) – Equals sum of 47a and 47b.

Thous. Dols.

48. Other, including treasury stock — Specify major items

49. TOTAL – Sum of items 45, 46, 47c, and 48,
also equals item 43 minus item 44

2133

OTHER FINANCIAL AND OPERATING DATA

Amount
(1)

• INCOME
50. Total income – Include –

Bil.

a. Sales or gross operating revenues included on page 4, item 21, column (2);
b. Income from equity investments in unconsolidated U.S. affiliates and foreign
affiliates owned by the U.S. affiliate;
c. Certain realized and unrealized gains (losses); and
d. Other income.

2153

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

2159

52. Expenditures for property, plant, and equipment for FY 2007 – 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.

2390

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PLEASE CONTINUE ON PAGE 8
FORM BE-12 BANK (REV. 9/2007)

BEA USE ONLY

xxxx

Page 7

BE-12 BANK, Page 7, Pantone 262 Purple, 10% and 100%

Mil.

Thous. Dols.

PART II – SELECTED FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE – Continued
Report all amounts in thousands of U.S. dollars.
Amount
(1)

CHANGE IN RETAINED EARNINGS – If retained earnings is not shown as a
separate account, show change in total owner’s equity.
Bil.

53. Balance, close FY 2006 before restatement due to a change in the entity (i.e.,
due to mergers, acquisitions, divestitures, etc.) or a change in accounting
methods or principles, if any – Enter amount from item 46, column (2); if retained
earnings is not shown as a separate account, enter amount from item 49, column (2).

Mil.

1
2211

54. Increase (decrease) to FY 2006 closing balance resulting from restatement
due to a change in accounting methods or principles, if any – Specify reasons
for change
1
2212
1

55. FY 2006 closing balance as restated – Item 53 plus item 54.

2213

56. Net income (loss) – Enter amount from item 51.

2214

$
1

57. Dividends or remitted earnings – Incorporated affiliate, enter amount of dividends
declared, inclusive of withholding taxes, out of current– or prior-period income, on
common and preferred stock, excluding stock dividends. Branches and agencies,
enter amount of earnings remitted to home office. Exclude losses reimbursed by
home office. Include such losses in item 58 below.

2215

58. Losses reimbursed by home office, and other increases (decreases) in retained
earnings, including stock or liquidating dividends, or, if retained earnings is not
shown as a separate account, other increases (decreases) in total owners’ equity,
including capital contributions (return of capital). – Specify major items
1
2217

59. FY 2007 closing balance – Sum of items 55, 56, and 58 minus item 57. Must equal
item 46, column (1) if retained earnings is shown as a separate account; must equal
item 49 column (1) if retained earnings is NOT shown as a separate account.

2218

CHANGE IN LOAN LOSS RESERVE, EXCLUDE LOANS TRANSFERRED TO
THE FOREIGN PARENT
60. Loan loss reserve – Balance at close of FY 2006

2300

61. Provision for loan losses – Amount charged to the loan loss reserve account
during FY 2007
62. Loan losses – Amount of actual loan losses incurred during FY 2007, including
direct write-offs

$
1

2301
1
2302

63. Recovered losses and other adjustments – Amount of actual loan losses and
other adjustments recovered during FY 2007 – Specify major items
1
2303

64. Loan loss reserve – Balance at close of FY 2007 – Sum of items 60, 61, and 63
minus item 62

1
2304

SCHEDULE OF EMPLOYMENT AND PROPERTY, PLANT, AND EQUIPMENT, BY LOCATION
65. Copy your answer from item 22 on page 4 of this report to the appropriate box
below and follow the applicable instructions.
Yes – For each state that you list on the schedule on page 9, complete
columns (3), (4), and (5). If column (5) is zero, please show zero.
No – For each state that you list on the schedule on page 9, complete
only columns (3) and (4). DO NOT complete column 5.

FORM BE-12 BANK (REV. 9/2007)

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Page 8

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Thous. Dols.

PART II – SELECTED FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE – Continued
Report all amounts in thousands of U.S. dollars.
SCHEDULE OF EMPLOYMENT AND PROPERTY, PLANT, AND EQUIPMENT, BY LOCATION – Continued
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.

Complete the schedule below for the five states in which the
U.S. affiliate has reportable data. If the U.S. affiliate has
activities in more than five states, report those five states for
which the number of employees (column (3)) is largest. If
the number of employees is zero or insignificant, use the
gross book value of all land and other property, plant and
equipment (column (4)) to determine the five primary states.

Column (5). Complete column (5) ONLY if item 65 on
page 8 is answered "Yes." Include in column (5) the gross
book value of commercial property you own, and
commercial property you use or operate that is leased
from others under a capital lease. Commercial property
includes ALL buildings and associated land leased or
rented to others under operating leases. Commercial
property includes apartment buildings; office buildings;
hotels; motels; and buildings used for wholesale, retail,
and services trades, such as shopping centers, recreational
facilities, department stores, bank buildings, restaurants,
public garages, and automobile service stations. Include
the value of land associated with these buildings. Include
office buildings and associated land owned by industrial
companies NOT located at industrial sites. Exclude
furniture and equipment located at commercial property.
Exclude property you use for agricultural, mining,
manufacturing, or other industrial purposes (such as water
and sewage treatment, electric power generation, and
other utility plants), property you use to support these
activities, such as research labs and warehouses, and
office buildings located at industrial sites. Also exclude
educational buildings, hospitals, nursing homes,
institutional buildings, and all undeveloped land.

In column (3), include all employees on the payroll at the
end of the fiscal year that ended in calendar year 2007,
including part-time employees. A count taken at some other
date during the reporting period may be given provided it is
a reasonable estimate of the number on the payroll at the
end of the fiscal year.
Employment is the number of full-time and part-time
employees on the payroll at the end of FY 2007,
excluding contract workers and other workers not carried
on the payroll of this U.S. affiliate. If employment at the
end of FY 2007 or the count taken at some other time
during FY 2007, 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 2007. If
given, the average should be the average for FY 2007 of
the number of persons on the payroll at the end of each
payroll period, month, or quarter. If precise figures are
not available, give your best estimate.
In column (4), include 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.
STATE – Enter name
BEA
USE
ONLY

If applicable, enter name of U.S.
territory or possession on the lines
below. Additional instructions for
items 66–72 are found starting on
page xx.

Number of
employees at
close FY 2007

BEA
USE
ONLY

(3)
Number

(2)

(1)
1

66.

Gross book value
To be completed by
(historical cost) of all
majority-owned
land and other property,
affiliates only.
plant, and equipment
The portion of
wherever carried on
column (4) that is
balance sheet, FY 2007
commercial property
closing balance.
(5)
(4)
Bil.
Mil.
Thous. Dols. Bil.
Mil.
Thous. Dols.
4

67.
68.
69.
70.
1

71.
1

72.

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

2764

TOTAL – Sum of items 66
through 72

2700

TOTAL NUMBER OF EMPLOYEES
EMPLOYEES AND EMPLOYEE COMPENSATION
Employee compensation – Sum of wages and salaries and employee benefit plans (before payroll
deductions). Expenditures made by an employer to employees, including cash payments, stock based
compensation, payments-in-kind, and employer expenditures for employee benefit plans including those required by
statute, those resulting from collective bargaining contracts, or those that are voluntary. Base compensation data on
payroll records. Report compensation which relates to activities that occurred during the reporting period regardless
of whether the activities were charged as an expense on the income statement, charged to inventories, or capitalized.
EXCLUDE amounts related to activities of a prior period, such as those capitalized or charged to inventories in prior
periods. See instruction 73–75 on page xx for more details of what to include as employee compensation.
Please report employees and employee compensation by Standard Occupation Classification (SOC).
See instruction 73–75 on page xx for a list of the major SOC groups.

Number of
employees

• NUMBER OF EMPLOYEES AND EMPLOYEE COMPENSATION

(1)

By Standard Occupation Classification (SOC)
73.
74.

Managerial, professional and technical employees (SOC 11-29)
All other employees (SOC 31-55)

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xxxx

75. TOTAL NUMBER OF EMPLOYEES AND EMPLOYEE COMPENSATION –
Sum of items 73 and 74. Column (1) must equal item 72 column (3).
FORM BE-12 BANK (REV. 9/2007)

Employee
compensation
(2)
Bil.
Mil.
Thous. Dols.

xxxx

Page 9

BE-12 BANK, page 9, Pantone 262 Purple, 10% and 100%

PART III – INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE
AND FOREIGN PARENT GROUP
Name of U.S. business enterprise shown
in item A on page 1 of this BE-12 BANK
Prepare a separate Part III for each ownership interest held by a foreign parent, at direct anytime during the fiscal year that
ended in calendar year 2007, in the U.S. affiliate named on page 1 of this BE-12. Such ownership interests are reported in
items 10 through 13 on page 3 (and, if applicable, continued on a separate sheet). If a foreign parent held both direct and
indirect ownership interests in this U.S. affiliate, prepare one Part III to report the direct interest and a separate Part III to
report the indirect interest. A Part III must also be prepared for foreign parent ownership interests disposed of in their entirety
during the year.
Use this Part III to report the foreign parent with the largest direct voting interest at year-end. Use photocopies of this
Part III to report all additional direct and indirect voting interests, if any, held by foreign parents in this U.S. affiliate.
If more than one Part III is filed, do not duplicate positions in, or transactions with, the U.S. affiliate.
Section A – IDENTIFICATION OF FOREIGN PARENT AND ULTIMATE BENEFICIAL OWNER
76. Number of Part III’s filed
3010 1
by the U.S. affiliate – If
there is only one, enter "1."

BEA USE ONLY
Control number

77. What is the name of the foreign parent in this Part III? A foreign parent is the FIRST person or entity outside
the U.S. in a chain ownership that has a 10 percent or more voting interest (direct or indirect) in this U.S. affiliate.
See examples 1 and 2 near the bottom of page 3 for diagrams that illustrate foreign parent.
3011

Name of foreign parent
78. For the foreign parent named in item 77 above, this Part III is being used to report – Mark (X) one
a. . . . . . . . . . . . . . . . . . . . . . . . . .

3012

a direct interest in the U.S. affiliate (as reported in items 10 and 11).
See example 1 on page 3 for an illustration of a direct interest.

b. . . . . . . . . . . . . . . . . . . . . . . . . .

3013

an indirect interest in the U.S. affiliate (as reported in items 12 and 13).
See example 2 on page 3 for an illustration of an indirect interest.

79. If item 78a is marked –
Give percent of –

Close FY 2007 Close FY 2006
(1)
(2)
1

a. voting interest owned . . . . . . . . . .

3014

b. equity interest owned . . . . . . . . . .

3015

.
2

"Voting interest" and "equity interest" are
defined in instruction 79 on page xx at the back
% of this form.
NOTE – Sum of item 79a of all Part III’s
% must equal the sum of items 10 and 11.

80. Country in which foreign parent named in item 77 –
a. is incorporated or organized, if a
business enterprise, or is a
resident, if an individual . . . . . . . .

BEA USE ONLY
3016 1

b. is located, if a business
enterprise and the country is
different from that in item 80a . . . .

3017 1

81. Enter the industry code, of the foreign parent named in item 77, 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.

3018 1

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, 2007.
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
04 Estate, trust, or nonprofit organization (that
part of ISI code 5252 that is estates and trusts)
05 Individual
Private business enterprise, investment
organization, or group engaged in:

19 Other services (ISI codes 1150, 2132, 2133, 5321,
5329, and 5611–8130)
Manufacturing, including fabricating,
assembling, and processing of goods:
20 Food (ISI codes 3111–3119)
21 Beverages and tobacco products (ISI codes 3121 and 3122)

06 Insurance (ISI codes 5242, 5243, 5249)

22 Pharmaceuticals and medicine (ISI code 3254)

07 Agriculture, forestry, fishing and hunting
(ISI codes 1110–1140)
08 Mining (ISI codes 2111–2127)

23 Other chemicals (ISI codes 3251–3259, except 3254)

09 Construction (ISI codes 2360–2380)

24 Nonmetallic mineral products (ISI codes 3271–3279)
25 Primary and fabricated metal products
(ISI codes 3311–3329)

10 Transportation and warehousing (ISI codes 4810–4939)

26 Computer and electronic products (ISI codes 3341–3346)

11 Utilities (ISI codes 2211–2213)

27 Machinery manufacturing (ISI codes 3331–3339)

12 Wholesale and retail trade (ISI codes 4231–4251
and 4410–4540)

28 Electrical equipment, appliances and
components (ISI codes 3351–3359)

13 Banking, including bank holding companies
(ISI codes 5221 and 5229)

29 Motor vehicles and parts (ISI codes 3361–3363)

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-12 BANK (REV. 9/2007)

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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 10

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PART III – INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE
AND FOREIGN PARENT GROUP – Continued
Section A – IDENTIFICATION OF FOREIGN PARENT AND ULTIMATE BENEFICIAL OWNER – Continued

Name, Country, and Industry Code of Ultimate Beneficial Owner (UBO)
Furnish the name, country, and industry code of the UBO. The UBO is that person or
entity, proceeding up the ownership chain beginning with and including the foreign parent,
that is not more than 50 percent owned or controlled by another person or entity. See
instruction II.O. on page xx for the complete definition of UBO.
See the diagrams at the bottom of this page for examples of the UBO.
82.

Is the foreign parent named in item 78 also the UBO? If the foreign parent is owned or controlled
more than 50 percent by another person or entity, then the foreign parent is NOT the UBO.
3019 1
1

83.

Yes – (example 1 below) – Skip to 85
No – (examples 2A and 2B below) – Continue with 83

Enter the name of the UBO of the foreign parent. If the UBO is an individual, or an associated
group of individuals, enter "individual." See instruction II.D. on page xx for the definition of associated
group. Identifying the UBO as "bearer shares" is not an acceptable response.
3021

84.

Enter country of UBO. For individuals, see instruction x on page x.

BEA USE ONLY
3022

85.

Enter the industry code of the UBO from the list of codes at the bottom of page 10. 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.
3023

DO NOT USE CODE 14 UNLESS YOU RECEIVE PERMISSION FROM BEA.
Code "14" (holding company) is normally NOT a valid UBO industry code.
PLEASE CONTINUE WITH QUESTION 86 ON PAGE 12
EXAMPLES OF THE ULTIMATE BENEFICIAL OWNER (UBO)

Example 1 – The UBO and Foreign Parent are the same foreign company
Foreign Company X

The UBO and foreign parent are the
same if the foreign parent is NOT
more than 50% owned or controlled
by another person or entity.

1 to 50%
Foreign Parent = UBO

Foreign
United States

U.S. affiliate A

Examples 2A and 2B – The Foreign Parent is NOT the UBO
A. The UBO is a foreign person or entity
Foreign Company X
(UBO)

Foreign company Y is the foreign
parent, foreign company X is the
UBO. The foreign parent is not the
UBO if the foreign parent is more
than 50% owned or controlled by
another person or entity.

>50 Percent
Foreign Company Y
(Foreign Parent)

Foreign
United States

U.S. affiliate A

B. The UBO is a U.S. person or entity
Foreign company Z is the
foreign parent. U.S. company C
is the UBO.

Foreign Company Z
(Foreign Parent)
>50 Percent
Foreign
United States
U.S. affiliate B

U.S. company C
(UBO)

NOTE: Arrows connecting boxes represent direction of ownership
FORM BE-12 BANK (REV. 9/2007)

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NOTE

▼

PART III – INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE
AND FOREIGN PARENT GROUP – Continued
1. If item 78a is marked, complete items 86 through 102. If item 78b is marked, report any direct transactions or
positions between the U.S. affiliate and the foreign parent group in items 86 through 89 and items 100 and 101.
Do not duplicate data reported on other Part III’s.
2. To avoid duplication in U.S. Government statistics, exclude from sections B and D claims and liabilities arising from
the parent’s and affiliate’s ordinary banking business and exclude from section E receipts and payments of interest on
the excluded claims and liabilities. Instead, report claims and liabilities arising from ordinary banking business and
related interest receipts and payments on Treasury Department International Capital (TIC) forms.

Section B – FOREIGN BANK PARENT’S PERMANENT DEBT INVESTMENT IN THE BANKING
OPERATIONS OF THE U.S. AFFILIATE
Report the foreign parent’s "permanent" debt investment that relates ONLY to consolidated subsidiaries or units that are
banks or bank holding companies. DO NOT include debt that arises from ordinary banking operations or debt that relates to
insurance, real estate, or leasing subsidiaries or units.
• DEBT
86. Foreign bank parent’s permanent debt investment balances in U.S. affiliate –
Close FY 2007
Close FY 2006
Include debt that is considered to be BOTH (a) permanently invested by the foreign
parent, and (b) positively identified as being used for nonbanking-type activities (e.g.,
(1)
(2)
debt used to acquire buildings, equipment, and other fixed assets). Exclude
Bil.
Mil. Thous. Dols. Bil.
Mil. Thous. Dols.
non-permanent debt such as ordinary bank loans or deposits. Also exclude demand
1
2
and overnight accounts, debt used to fund investment activities, and debt for which
the proceeds are used to meet regulatory and/or capital requirements.
3055 $
$
Section C – INTERCOMPANY BALANCES BETWEEN THE INSURANCE, REAL ESTATE, AND
LEASING SUBSIDIARIES OR UNITS OF THE U.S. AFFILIATE AND THE FOREIGN
PARENT NAMED IN ITEM 77, AND ITS FOREIGN PARENT GROUP
NOTE: See the diagram near the bottom of page 4 that illustrates foreign parent group.
Insurance activities are covered by industry codes 5243 (insurance carriers, except life insurance carriers) and 5249 (life insurance carriers). Real
estate activities are covered by industry code 5310 (real estate). Leasing activities are covered by industry codes 5321 (automotive equipment
rental and leasing), 5329 (other rental and leasing services), and 5331 (lessors of non-financial intangible assets (except copyrighted works)).
87. Does this Form BE-12 BANK include data for domestic U.S. subsidiaries or units that have insurance, real
estate, or leasing activities?
1
3047
1

1
2

Yes – Answer items 88 and 89.

No – Skip to item 90.
NOTE: Complete items 88 and 89 ONLY if item 87 is answered "Yes."

For items 88 and 89 report amounts that relate ONLY to insurance, real
Close FY 2007
estate, and leasing activities. Report amounts according to the books of the
(1)
U.S. affiliate.
Bil.
Mil. Thous. Dols. Bil.
88. Liabilities, relating to your insurance, real estate, and leasing activities,
1
2
owed by U.S. affiliate to foreign parent named in item 77 and to its
foreign parent group – Current and long-term.
$
$
3050

NOTE

▼

89. Receivables, relating to your insurance, real estate, and leasing
activities, due to U.S. affiliate from foreign parent named in item 77 and
from its foreign parent group – Current and long-term. Include certificates of
deposit and other deposits (that would otherwise be included in cash on your
balance sheet) held by the foreign parent and foreign parent group.

3051

Close FY 2006
(2)
Mil. Thous.

Dols.

Data reported in sections D, E, and F must be for the fully consolidated domestic U.S. affiliate. The consolidation rules
are found on page xx at the back of this form.

Section D – CHANGES IN EQUITY HOLDINGS IN THE U.S. AFFILIATE BY THE FOREIGN PARENT NAMED IN ITEM 77
Report transactions during FY 2007 by the foreign parent named in item 77 that changed its equity holdings in the U.S.
affiliate. EXCLUDE changes caused by carrying net income to the equity account, the payment of stock or cash dividends (other than
liquidating dividends), or the remittance of earnings during the period.
EXCLUDE effect of treasury stock transactions with persons other than the foreign parent, reimbursed losses,
and reorganizations in capital structure that do not affect total equity. REPORT ALL AMOUNTS AT THE
TRANSACTION VALUE, i.e., the value of the consideration given or received by the foreign parent for the
increases or decreases in the foreign parent’s equity holdings in the U.S. affiliate.
• TRANSACTIONS BETWEEN FOREIGN PARENT AND U.S. AFFILIATE
90. Increase in equity interest
90a. Increase from reimbursed losses

Amount
(1)
Bil.

Mil. Thous.

Dols.

1
3048

90b. Other Increases – Report purchases of capital stock by the foreign parent from the U.S.
affiliate and other contributions by the foreign parent of equity capital not resulting in the
issuance of stock to the foreign parent by the U.S. affiliate.
91. Decrease in equity interest – Report sales of capital stock by the foreign parent to the U.S. affiliate,
returns of contributed equity capital to the foreign parent not resulting in a reduction of issued stock,
and liquidating dividends. Branches and agencies, report the foreign parent’s decrease in the affiliate’s
equity (or home office account).
• TRANSACTIONS BETWEEN FOREIGN PARENT AND A PERSON OTHER THAN U.S. AFFILIATE
Acquisition by foreign parent of equity interest in U.S. affiliate from –
U.S. persons other than the U.S. affiliate
92.

$
1

$
3049
1

$
3066
1

3067
1

93.

All foreign persons

3068
1

Sale by foreign parent of equity interest in U.S. affiliate to –
U.S. persons other than the U.S. affiliate
94.

3069

95.

3070

All foreign persons

96. TOTAL TRANSACTION VALUE –
Equals sum of items 90a, 90b, 92 and 93, minus sum of items 91, 94 and 95

3071

For sale or termination
of operations
(items 94 and 95)
(1)
(2)
Mil.
Thous. Dols. Bil.
Mil.
Thous. Dols.

For (items 92 and 93)
acquisition

• For items 92–95, what are the amounts by which the transaction values
reported in those items –
97.
98.

exceeds the value carried on the books of the U.S. affiliate
are less than the value carried on the books of the U.S. affiliate

FORM BE-12 BANK (REV. 9/2007)

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Bil.
3090

3091

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PART III – INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE
AND FOREIGN PARENT GROUP – Continued
Section E – PAYMENTS AND RECEIPTS OF DIVIDENDS OR REMITTED EARNINGS AND INTEREST
Enter amounts received, paid, or
entered into intercompany
accounts, whichever occurred first.
Include amounts for which payment
was made in kind. For an item
accrued prior to the reporting
period, do not report any
subsequent settlement of the
account in the items below.
99. Dividends or remitted
earnings – Dividends on
common and preferred stock,
excluding stock and
liquidating dividends of
incorporated U.S. bank
affiliate, or distributed
earnings of a U.S. bank
affiliate that is a branch or
agency. Exclude reimbursed
losses. Report reimbursed
3073
losses in item 90a.
100. Interest on foreign
parent’s permanent
invested debt (item 86) –
Do not include interest from
other types of loans.
3076

PAYMENTS OR CREDITS BY U.S.
AFFILIATE TO FOREIGN PARENT
Gross payment
(before deduction of
U.S. tax withheld)
(1)
Bil.

U.S. tax withheld
(2)
Bil.

Mil. Thous. Dols.

Mil.

Thous. Dols.

PAYMENTS OR CREDITS BY U.S.
AFFILIATE TO FOREIGN PARENT
GROUP

101. Interest on liabilities
and receivables related
to the insurance, real
estate, and leasing
activities (items 88
and 89).

Gross payment
(before deduction of
U.S. tax withheld)
(1)
Bil.

RECEIPTS BY OR CREDITS TO U.S.
AFFILIATE FROM FOREIGN PARENT
GROUP
Gross receipt (before
deduction of foreign
tax withheld)
(3)

U.S. tax withheld
(2)

Mil. Thous. Dols.

Bil.

Mil.

3080

Thous. Dols. Bil.

Mil.

Foreign tax withheld
(4)

Thous. Dols. Bil.

Section F – FOREIGN PARENT’S EQUITY IN U.S. AFFILIATE’S NET INCOME

Thous. Dols.

Mil.

Amount
(1)
Bil.

102. Foreign parent’s direct equity in U.S. affiliate’s net income (loss) after
provision for U.S. Federal, State, and local income taxes – Enter the foreign
parent’s share on page 7, item 51 based on the foreign parent’s direct equity in the U.S.
affiliate during FY 2007.
1

BEA USE ONLY
3103

FORM BE-12 BANK (REV. 9/2007)

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3085

$
4

Mil.

Thous. Dols.

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

FORM BE-12 BANK (REV. 9/2007)

Page 14

Page 15

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BUREAU OF ECONOMIC ANALYSIS

5133

5132

5131

5130

5129

5128

5127

5126

5125

5124

5123

5122

5121

5120

5119

5118

5117

5116

5115

5114

5113

5112

5111

(2)

(1)

Name of each U.S. affiliate consolidated or aggregated (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 which consolidates or aggregates 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-12 BANK. Continue listing onto as many
additional copied pages as necessary.

LIST OF ALL U.S. AFFILIATES FULLY CONSOLIDATED OR DIRECTLY FOREIGN OWNED BRANCHES
AND AGENCIES AGGREGATED INTO THE REPORTING AFFILIATE

BE-12 BANK Supplement A (2007)

FORM
(REV. 9/2007)

U.S. DEPARTMENT OF COMMERCE

(4)

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

Primary Employer Identification Number as shown in item 3, Part I of BE-12 BANK

5110

Page number

Name of U.S. affiliate as shown in item A, page 1, of BE-12 BANK

BEA USE ONLY

Percentage of direct voting
ownership which 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. 0608-0042: Approval Expires xx/xx/xxxx

FORM BE-12 BANK (REV. 9/2007)

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5159

5158

5157

5156

5155

5154

5153

5152

5151

5150

5149

5148

5147

5146

5145

5144

5143

5142

5141

5140

5139

5138

5137

5136

5135

5134

(2)

(1)

Name of each U.S. affiliate consolidated or aggregated (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

Page number

(4)

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

BE-12 BANK Supplement A (2007) – List of ALL U.S. affiliates fully consolidated and directly foreign owned branches and agencies aggregated into the reporting affiliate – Cont.

Percentage of direct voting
ownership which 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 17

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BUREAU OF ECONOMIC ANALYSIS

U.S. DEPARTMENT OF COMMERCE

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
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-12
BANK, holds in the U.S. affiliate
named in column (2). – Enter
percentage to nearest tenth.
(6)

OMB No. 0608-0042: Approval Expires xx/xx/xxxx
Name of U.S. affiliate as shown in item A, page 1, of BE-12 BANK

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-12 BANK 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-12 BANK. Continue listing onto as many additional copied pages as necessary.

LIST OF ALL U.S. AFFILIATES IN WHICH THE REPORTING AFFILIATE (AS CONSOLIDATED) HAS A DIRECT
OWNERSHIP INTEREST BUT WHICH ARE NOT FULLY CONSOLIDATED

BE-12 BANK Supplement B (2007)

FORM
(REV. 9/2007)

FORM BE-12 BANK (REV. 9/2007)

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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-12 BANK Supplement B (2007) – 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
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-12 BANK, holds in the U.S.
affiliate named in column (2). –
Enter percentage to nearest tenth.
(6)

BENCHMARK SURVEY OF FOREIGN DIRECT INVESTMENT IN THE UNITED STATES – 2007
FORM BE-12 BANK ADDITIONAL INSTRUCTIONS
NOTE: Instructions in section IV are cross referenced by number to the items located on pages 1 to 18 of this form.
7. 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 $175 million at the
end of, or for, its fiscal year that ended in calendar year 2007?

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).

Yes – File Form BE-12(LF) by May 31, 2008.

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-12 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 E-File
system. This may be accomplished by completing and submitting
Form BE-12(LF), BE-12(SF), BE-12 Mini, BE-12 BANK, or the BE-12
Claim For Not Filing by May 31, 2008, whichever is applicable.

No – File Form BE-12(SF) by May 31, 2008.
B. Indirect ownership interest in a U.S. business enterprise is
the product of the direct ownership percentage of the foreign
parent in the first U.S. business enterprise in the ownership chain
multiplied by that first enterprise’s direct ownership percentage in
the second U.S. business enterprise multiplied by each succeeding
direct ownership percentage of each other intervening U.S.
business enterprise in the ownership chain between the foreign
parent and the given U.S. business enterprise.
Example: In the diagram below, foreign person A owns 100% of
the voting stock of U.S. affiliate B; U.S. affiliate B owns 50% of the
voting stock of U.S. affiliate C; and U.S. affiliate C owns 25% of the
voting stock of U.S. affiliate D. Therefore, U.S. affiliate B is 100%
directly owned by foreign person A; U.S. affiliate C is 50% indirectly
owned by foreign person A; and U.S. affiliate D is 12.5% indirectly
owned by foreign person A.

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).

Calculation of Foreign Ownership
Foreign
U.S.

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. The
control number for this survey is at the top of page 1 of this form.

↓

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

↓

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

Respondent Burden – Public reporting burden for this BANK form
is estimated to vary from 4 to 8 hours per response, with an average
of 5.5 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 0608-0042, Washington, DC 20503.

↓

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

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.

II. DEFINITIONS OF KEY TERMS
A. United States, when used in a geographic sense, means the
several States, the District of Columbia, the Commonwealth of
Puerto Rico, and all territories and possessions of the
United States.
B. Foreign, when used in a geographic sense, means that which is
situated outside the United States or which belongs to or is
characteristic of a country other than the United States.
C. Person, means any individual, branch, partnership, association,
associated group, estate, trust, corporation, or other organization
(whether or not organized under the laws of any State), and any
government (including a foreign government, the U.S.
Government, a State or local government, and any agency,
corporation, financial institution, or other entity or instrumentality
thereof, including a government sponsored agency).
D. Associated group means two or more persons who, by the
appearance of their actions, by agreement, or by an
understanding, exercise their voting privileges in a concerted
manner to influence the management of a business enterprise.
The following are deemed to be associated groups:
1. Members of the same family.

I. REPORTING REQUIREMENTS
A. Which form to file – Please review the questions below to
determine which form to file.
1. Were at least 10 percent of the voting rights in your business
directly or indirectly owned by a foreign person or entity at
the end of your fiscal year that ended in calendar year 2007?
Yes – Continue with question 2. NOTE: Your business
is hereinafter referred to as a "U.S. affiliate."
No – File the BE-12 Claim For Not Filing by May 31, 2008.
2. Is this U.S. affiliate a bank, bank holding company, or
financial holding company?
Yes – File Form BE-12 BANK by May 31, 2008.

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.

No – Continue with question 3.
3. Were more than 50 percent of the voting rights in this U.S.
affiliate owned by another U.S. affiliate before the end of this
U.S. affiliate’s fiscal year that ended in calendar year 2007?
Yes – Continue with question 4.
No – Skip to question 5.
4. Do different foreign persons hold a direct and an indirect
ownership interest in this U.S. affiliate (exception to the
consolidation rules)? (The consolidation rules are found in
instruction IV.2 on page x.)
Yes – Continue with question 5.
No – This U.S. affiliate must be consolidated on the BE-12
report of the U.S. affiliate that owns it more than 50 percent.
File the BE-12 Claim For Not Filing by May 31, 2008, 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.
5. 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 $40 million at the
end of, or for, its fiscal year that ended in calendar year 2007?
Yes – Continue with question 6.
No – File a Form BE-12 Mini by May 31, 2008.
6. Was the U.S. affiliate majority-owned by its foreign parents at the
end of its fiscal year that ended in calendar year 2007? (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.)

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.

Yes – Continue with question 7.
No – File Form BE-12(SF) by May 31, 2008.

BE-12 BANK (REV. 9/2007)

Foreign person A

Page 19

(Note that subsequent filings of Form BE-605 quarterly reports with
BEA, if required, must be on the same aggregated basis.) If all U.S.
branches and agencies directly owned by a foreign bank are not
aggregated on a single report, then each branch or agency must file a
separate Form BE-12 BANK.

II. DEFINITIONS OF KEY TERMS – Continued
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.

Example A

2. Minority-owned U.S. affiliate means a U.S. affiliate in
which the combined direct and indirect voting interest of all
foreign parents of the U.S. affiliate is 50 percent or less.

Foreign
U.S.

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.

Miami
Branch
Los Angeles
Branch

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

O. 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. Note: Stockholders of a closely or privately held
corporation are normally considered to be an associated group and
may be a UBO.

Example B
Foreign
U.S.

P. 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.

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.
III. GENERAL INSTRUCTIONS
A. Changes in the reporting entity – DO NOT restate close fiscal
year 2006 balances for changes in the consolidated reporting
entity that occurred during fiscal year 2007. The close fiscal year
2006 balances should represent the reporting entity as it existed
at the close of fiscal year 2006.

Foreign Parent

U.S. Bank B
Branch 1

Branch 3
Branch 2

Q. 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.
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.

New York City
Branch

Data for all three branches (Miami, Los Angeles, and New
York City) owned by Foreign Parent Bank A may be
aggregated on a single Form BE-12 BANK. If aggregated,
list all three branches on the Supplement A to this form.
Report "3" as the number of U.S. branches aggregated for
item 7 on page 2 of this form.

N. Intermediary means any agent, nominee, manager, custodian,
trust, or any person acting in a similar capacity.

Consolidate data for each branch (branch 1, branch 2, and
branch 3) and U.S. Bank B on a single Form BE-12 BANK. DO
NOT list them on the Supplement A. Report "1" as number of
U.S. affiliates consolidated for item 7 on page 2 of this form.
Unless the exceptions discussed below apply, any deviation
from these consolidation/aggregation rules must be approved
in writing each year by BEA. In accordance with FAS 94
(Consolidation of all Majority-Owned Subsidiaries), consolidation of
majority-owned subsidiaries is required even if their operations are
not homogeneous with those of the U.S. affiliate that owns them. If
you receive permission from BEA to file deconsolidated reports, report
such unconsolidated affiliates on this Form BE-12 BANK using the
equity method of accounting. DO NOT eliminate intercompany
accounts (e.g., receivables or liabilities) for affiliates not consolidated.
Exceptions to consolidated reporting – Note: If a U.S. affiliate is
not consolidated into its U.S. parent’s BE-12 report, then it must be
listed on the Supplement B of its parent’s BE 12 report, unless the
report is a BE-12 Mini which does not have a Supplement B, and
each U.S. affiliate must file its own Form BE-12(LF), BE-12(SF),
BE-12 Mini, or BE-12 BANK.

B. 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.
C. 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-12 BANK 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. 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.

a. DO NOT CONSOLIDATE FOREIGN SUBSIDIARIES,
BRANCHES, OPERATIONS OR INVESTMENTS NO MATTER
WHAT THE PERCENTAGE OWNERSHIP. Report foreign holdings
of the U.S. bank affiliate owned 20 percent or more (including those
that are majority owned) using the equity method of accounting.
DO NOT eliminate intercompany accounts for investments reported
using the equity method. You may report immaterial foreign
investments using the cost method of accounting if this treatment
is consistent with your normal reporting practice.
Report foreign holdings of the U.S. bank affiliate owned less than 20
percent in accordance with FAS 115 (Accounting for Certain
Investments in Debt and Equity Securities) or the cost method of
accounting.
Do not consolidate, aggregate, or report on the equity or cost
methods the operations of branches separately chartered by the
foreign parent offshore (for example, in the Cayman Islands or the
Bahamas). Such branches are considered to be foreign branches of
the foreign parent and are not foreign holdings of the U.S. bank
affiliate.

D. 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.

b. 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-12(LF), BE-12(SF), BE-12 Mini,
or BE-12 BANK. (See diagram below.)

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

Foreign person B

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 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.

Foreign person A

Foreign
U.S.
30%

100%
U.S. affiliate X
60%

NOTE: U.S. affiliates that are banks and bank holding companies
that directly or indirectly own more than a 50 percent interest in one
or more U.S. affiliates in nonbanking industries must file a single
consolidated report on Form BE-12 BANK to report BOTH the
banking and nonbanking operations.
Except as noted in b, all majority-owned U.S. affiliates should be fully
consolidated into your Form BE-12 BANK.
Aggregated reporting – All U.S. branches and agencies (including
International Banking Facilities) directly owned by a foreign bank may
be aggregated on a single Form BE-12 BANK. See example A above.

BE-12 BANK (REV. 9/2007)

Foreign Parent
Bank A

Page 20

U.S. affiliate Y
U.S. affiliate Y may not be fully consolidated into U.S.
affiliate X because of the 30 percent direct ownership by
foreign person B.
If this exception applies, reflect the indirect ownership interest,
even if more than 50 percent, on the owning U.S. affiliate’s BE-12
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.

66–72 – SCHEDULE OF EMPLOYMENT AND PROPERTY,
PLANT, AND EQUIPMENT, BY LOCATION

IV. INSTRUCTIONS FOR SPECIFIC SECTIONS OF THE
REPORT FORM – Continued
4. Reporting period – The report covers the U.S. affiliate’s 2007
fiscal year. The affiliate’s 2007 fiscal year is defined as the
affiliate’s financial reporting year that had an ending date in
calendar year 2007.
Special Circumstances:
a. 52/53 week fiscal year – Affiliates having a "52/53 week" fiscal
year that ends within the first week of January 2008 are
considered to have a 2007 fiscal year and should report
December 31, 2007 as their 2007 fiscal year end.
b. U.S. affiliates without a financial reporting year – If a U.S.
affiliate does not have a financial reporting year, its fiscal year
is deemed to be the same as calendar year 2007.
c. Change in fiscal year

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 data pertaining to those U.S. business enterprises that
are fully consolidated into the reporting U.S. affiliate. Do not
consolidate or include data for foreign business enterprises or
operations, whether incorporated or unincorporated.
Location of employees or of an asset is the U.S. State, territory,
or possession in which the person is permanently employed, or in
which the land or other property, plant, and equipment is
physically located and to which property taxes, if any, on such
assets are paid.
Example: An employee carried on the payroll of a company
located in California who is on a duty assignment for one
year or less in Texas should be shown as being located in
California, not Texas.

(1) New fiscal year ends in calendar year 2007 – A U.S.
affiliate that changed the ending date of its financial
reporting year must file a 2007 Form BE-12 BANK that
covers the 12 month period prior to the new fiscal
year end date. The following example illustrates the
reporting requirements.

Exception: If the duty assignment is for more than one year,
show the employee as being located in Texas, not California.

Example 1. U.S. affiliate A had a June 30, 2006 fiscal year
end date but changed its 2007 fiscal year end date to
March 31. Affiliate A must file a 2007 Form BE-12 BANK
covering the 12 month period from April 1, 2006 to
March 31, 2007. The ending balance sheet amounts
reported in column (1) of items 43 through 49 must be the
correct balances as of March 31, 2007. The beginning
balance sheet amounts reported in column (2) must be the
unrestated ending balances as of June 30, 2006. To
reconcile the beginning and ending retained earnings
balances (or, if retained earnings is not shown as a separate
account, the beginning and ending owners’ equity balances)
affiliate A must include an adjusting entry in item 54.
(2) No fiscal year ending in calendar year 2007 – If a
change in fiscal year results in a U.S. affiliate not having a
fiscal year that ended in calendar 2007, the affiliate must
file a 2007 Form BE-12 BANK that covers 12 months
of data. The following example illustrates the reporting
requirements.
Example 2. U.S. affiliate B had a December 31, 2006 fiscal
year end date but changed its next fiscal year end date to
March 31. Instead of having a short fiscal year ending in
2007, affiliate B decides to have a 15 month fiscal year
running from January 1, 2007 to March 31, 2008. Affiliate B
must file a 2007 Form BE-12 BANK covering a 12 month
period ending in calendar year 2007, such as the period
from April 1, 2006 to March 31, 2007. In this example, the
ending balance sheet amounts reported in column (1) of
items 43 through 49 must be the correct balances as of
March 31, 2007. The beginning balance sheet amounts
reported in column (2) must be the unrestated ending
balances as of December 31, 2006. To reconcile the
beginning and ending retained earnings balances (or, if
retained earnings is not shown as a separate account, the
beginning and ending owners’ equity balances) affiliate B
must include an adjusting entry in item 54.
5. Reporting requirements for a U.S. business enterprise
that became foreign owned in fiscal year 2007
a. A U.S. business enterprises newly established in fiscal
year 2007 must report data starting with the establishment
date up to and ending on the last day of its fiscal year that
ended in calendar year 2007. DO NOT estimate data for a full
year of operations if the first fiscal year is less than 12 months.
b. A U.S. business enterprises existing before fiscal year
2007 that became foreign owned in fiscal year 2007 must
report data for all items for a full 12 months of operations.
37. Certain realized and unrealized gains (losses) –
Special instructions for dealers in financial instruments and
finance and insurance companies.
(1) Dealers in financial instruments (including securities,
currencies, derivatives, and other financial
instruments) and finance and insurance companies –
Include in item 37:

73–75 – EMPLOYEES AND EMPLOYEE COMPENSATION
Total employee compensation – Employee compensation
consists of wages and salaries of employees and employer
expenditures for all employee benefit plans. Base employee
compensation data on payroll records related to activities during
the reporting period. The employee compensation data must cover
activities that were charged as an expense on the income
statement, charged to inventories, or capitalized during the
reporting period. Do not include data related to activities of prior
periods, such as those capitalized or charged to inventories in prior
years.
(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 independent personnel who are not
employees.
Wages and salaries include direct payments by employers
for vacations, sick leave, severance (redundancy) pay, etc.
Exclude payments made by, or on behalf of, benefit funds
rather than by the employer. (Include employer
contributions to benefit funds in employee benefit plans.)
Wages and salaries include in-kind payments, valued at
their cost, that are clearly and primarily of benefit to
the employees as consumers. Do not include
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 are employer expenditures for all
employee benefit plans, including those required by
government statute, those resulting from a
collective-bargaining contract, or those that are voluntary.
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.
Standard Occupation Classification System (SOC) Groups – The
major SOC groups are as follows:
Managerial, professional and technical employees – Covers
employees in Standard Occupation Classification System (SOC) groups
11–29 listed below:
11-Management Occupations
13-Business and Financial Operations Occupations
15-Computer and Mathematical Occupations
17-Architecture and Engineering Occupations
19-Life, Physical, and Social Science Occupations
21-Community and Social Services Occupations
23-Legal Occupations
25-Education, Training, and Library Occupations
27-Arts, Design, Entertainment, Sports, and Media
Occupations
29-Healthcare Practitioners and Technical Occupations

(a) impairment losses as defined by FAS 115,
(b) realized gains and losses on trading or dealing,
(c) unrealized gains or losses, due to changes in the valuation
of financial instruments, that flow through the income
statement, and
(d) goodwill impairment as defined by FAS 142.
EXCLUDE unrealized gains or losses due to changes in the
valuation of financial instruments that are taken to other comprehensive income. Reflect such changes in items 47b and 47c (total
accumulated accumulated other comprehensive income (loss)).

All other employees – Covers employees in SOC groups 31–55 listed
below:
31-Healthcare Support Occupations
33-Protective Service Occupations
35-Food Preparation and Serving Related Occupations
37-Building and Grounds Cleaning and Maintenance
Occupations
39-Personal Care and Service Occupations
41-Sales and Related Occupations
43-Office and Administrative Support Occupations
45-Farming, Fishing, and Forestry Occupations
47-Construction and Extraction Occupations
49-Installation, Maintenance, and Repair Occupations
51-Production Occupations
53-Transportation and Material Moving Occupations
55-Military Specific Occupations

EXCLUDE income from explicit fees and commissions from
item 37. Include income from these fees and commissions as
part of your income from operations on page 4, items 16
through 22.
45–49 – OWNER’S EQUITY ITEMS
Equity investment in branches and agencies consists of earnings
(losses) that have not been distributed or credited (debited) against the
parent’s account, plus the parent’s initial capitalization and subsequent
contributions of capital, less the return of this capital, plus the balance
of the "accumulated other comprehensive income (loss)" account. If
equity investment cannot be separately identified from debt, then (1)
report equity as zero, (2) include all debt and equity amounts in item 44
(total liabilities), and (3) include an amount equal to net income (item
51) in item 57 (dividends or remitted earnings), or an amount equal to
net loss (item 51) in item 58 (losses reimbursed by home office).

FORM BE-12 BANK (REV. 9/2007)

The SOC and related information can be found at the Bureau of Labor
Statistics web site www.bls.gov. Using the A–Z index, select Standard
Occupational Classification.

Page 21

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

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.

79. Voting interest and Equity interest
a. Voting interest is the percent of ownership in the voting
equity of the U.S. affiliate. Voting equity consists of
ownership interests that have a say in the management of
the company. Examples of voting equity include capital
stock that has voting rights and a general partner’s interest
in a partnership.

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.

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.

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.

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
stock and preferred stock. 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. There are 50 shares of preferred stock outstanding.
Each preferred share has an ownership interest in 1 percent of
the total owners’ equity but has no voting rights. Foreign
parent B owns all 50 shares of the common stock. Unaffiliated
U.S. investors own all 50 shares of the preferred stock. Since
foreign parent B owns all of the voting stock, foreign parent B
has a 100 percent voting interest in U.S. affiliate A. However,
since all 50 of the nonvoting preferred shares are owned by
unaffiliated U.S. investors, foreign parent B has only a 50
percent equity interest in U.S. affiliate A.
V. SPECIAL INSTRUCTIONS
A. Estates, trusts, and intermediaries
A FOREIGN ESTATE is a person and therefore may have
direct investment, and the estate, not the beneficiary, is
considered to be the owner.
A TRUST is a person but it is not a business enterprise. The
trust is considered to be the same as an intermediary, and should
report as outlined in the instructions for intermediaries below.
For reporting purposes, the beneficiary(ies) of the trust, is (are)
considered to be the owner(s) for purposes of determining the
existence of direct investment, except in two cases: (1) if there is,
or may be, a reversionary interest, and (2) if a corporation or
other organization creates a trust designating its shareholders or
members as beneficiaries. In these two cases, the creator(s) of
the trust is (are) deemed to be the owner(s) of the investments of
the trust (or succeeding trusts where the presently existing trust
had evolved out of a prior trust), for the purposes of determining
the existence and reporting of direct investment.
This procedure is adopted in order to fulfill the statistical
purposes of this survey and does not imply that control over
an enterprise owned or controlled by a trust is, or can be,
exercised by the beneficiary(ies) or creator(s).
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.

VI. FILING THE BE-12
A. Due date – File a fully completed and certified Form BE-12
BANK no later than May 31, 2008. If the U.S. affiliate is
exempt from filing Form BE-12 BANK, complete and file the
BE-12 Claim For Not Filing by May 31, 2008.
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/efile for
details about this option. To obtain forms online go to:
www.bea.gov/fdi
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
NO LATER THAN the original due date of the report.
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/fdi
E. Annual stockholders’ report or other financial
statements – Please furnish a copy of your FY 2007 annual
stockholders’ report or Form 10K when filing the BE-12
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. 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 on page 19.)
G. Where to send the report.
To file electronically, see our web site at:
www.bea.gov/efile
FAX reports to:
202-606-xxxx

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.

Email reports to:
be12/[email protected]
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

B. 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:

Direct reports filed by private delivery service to:
U.S. Department of Commerce
Bureau of Economic Analysis
BE-49(A)
Shipping and Receiving Section, M100
1441 L Street, NW
Washington, DC 20005

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.

FORM BE-12 BANK (REV. 9/2007)

Page 22

File Type	application/pdf
File Modified	2007-09-28
File Created	2007-09-07