Form BE-11B(FN)

FORM

BE-11B(FN)

OMB No. 0608-0053: Approval Expires 11/30/2010

(REV. 11/2008)

2008 ANNUAL SURVEY OF U.S. DIRECT INVESTMENT ABROAD
MANDATORY — CONFIDENTIAL

BE-11B(FN) (Report for Foreign Affiliates of Bank U.S. Reporter and
Bank Foreign Affiliate of Nonbank U.S. Reporter)
DUE DATE — A complete BE-11 report is due May 29, 2009
MAIL REPORTS TO:
U.S. Department of Commerce
Bureau of Economic Analysis
BE-69(A)
Washington, DC 20230

BEA USE ONLY

E

Affiliate ID Number

1. Name of U.S. Reporter of foreign affiliate — Same as item 1, Form BE-11A

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

2. Name of foreign affiliate being reported — Use the same name on all reports filed subsequently for
this affiliate with the Bureau of Economic Analysis, e.g., BE-577.

IMPORTANT
Please read the Instruction Booklet, which contains definitions and reporting requirements, before completing this form. "Additional"
Instructions specific to line items and "Special" Instructions for dealers in financial instruments and finance, insurance, and real estate
companies are provided at the back of this form.
For purposes of the BE-11 survey, a "bank" is a business entity engaged in deposit banking or closely related functions, including commercial
banks, Edge Act corporations, foreign branches and agencies of U.S. banks whether or not they accept deposits abroad, savings and loans,
savings banks, bank holding companies and financial holding companies under the Gramm-Leach-Bliley Act.

•

Who must report — 1) The bank U.S. Reporter must file Form BE-11B(FN) for each bank and nonbank foreign affiliate for which total
assets; sales or gross operating revenues, excluding sales taxes; or net income after provision for foreign taxes was greater than $250
million (positive or negative) at the end of, or for, the affiliate’s 2008 fiscal year; 2) the nonbank U.S. Reporter must file Form BE-11B(FN) for
each bank foreign affiliate for which total assets; sales or gross operation revenues, excluding sales taxes; or net income after provision for
foreign taxes was greater than $250 million (positive or negative) at the end of or for the affiliate’s 2008 fiscal year. See Instruction
Booklet, Part I, for detailed reporting requirements.

•

Foreign affiliate’s 2008 fiscal year — The foreign affiliate’s financial reporting year that has an ending date in calendar year 2008. See
Instruction Booklet, Part II.A.

•

Translation of foreign currency financial and operating data into U.S. dollars — Use U.S. Generally Accepted Accounting Principles
(FAS 52). See Instruction Booklet, Part IV.B.
Bil.

•

Mil.

Thous. Dols.

Currency amounts — Report 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
If an item is between + or - $500.00, enter "0." Use parenthesis () to indicate negative numbers.

•

Contact us for help — Telephone: 202–606–5566; FAX: 202–606–5312; E-mail: be10/[email protected].

Part I — IDENTIFICATION OF FOREIGN AFFILIATE
See Additional Instructions for Part I on page 7 at the back of this form.
3. Country of incorporation or organization of this foreign affiliate — Mark (X) one.
1006

1 601

Australia

1 202

1 307
1 308

Brazil

1

100

Canada

1

650

China

France
Germany

1

611

Hong Kong

1

314

Italy

1 614
1 213
1

319

1

325

Japan
Mexico

1 327
1

United Kingdom
Other — Specify

Netherlands
Switzerland

4. Country of location — Country in which this foreign affiliate’s physical assets are located or where its primary activity is
carried out — Mark (X) one.
1007

1 601

Australia

1 202

1 307
1 308

Brazil

1

100

Canada

1

650

China

France
Germany

1

611

Hong Kong

1

314

Italy

1 614
1 213
1

319

1

325

Japan
Mexico

1 327
1

United Kingdom
Other — Specify

Netherlands
Switzerland
Month
1009

Day

Year

1

2008

5. The ending date of this foreign affiliate’s 2008 fiscal year.
6. Did the foreign business enterprise become a foreign affiliate of the U.S. Reporter during the fiscal year?
1010

1

1

Yes, and this is its initial report — Affiliate was not previously owned by the U.S. Reporter
If "Yes," did the U.S. Reporter — Mark (X) one
2
2

1

Remarks

2

1
2

No

Establish the foreign affiliate?
Acquire a voting interest of 10 percent or more in an existing foreign company?

⎫
⎬
⎭

Month
Enter
date

3

Year

BE-11B(FN)
Part I — IDENTIFICATION OF FOREIGN AFFILIATE — Continued
Percent of ownership at close
of fiscal year
DIRECT OWNERSHIP IN THIS FOREIGN AFFILIATE — Enter percent
of ownership, to a tenth of one percent, based on total voting stock, as
applicable, if an incorporated affiliate, or an equivalent interest if an
unincorporated affiliate, held directly by

Equity interest

Voting interest

2008
(1)

2008
(2)

1

7. U.S. Reporter named in item 1 — Report equity interest and voting interest.

2

.

1012

8. Other foreign affiliate(s) of U.S. Reporter named in Item 1 — If entry is made here,
complete items 15 and 16.

%

.

%

.

%

.

%

.

%

.

%

.

%

.

%

2
1013
2

9. Other U.S. Reporter(s) of this foreign affiliate — If entry is made here, item 17
must be "Yes."

1014
2

10. Foreign affiliate(s) of other U.S. Reporter(s) — If entry is made here, item 17
must be "Yes."

1015
2

11. Other U.S. persons

1016
2

12. Foreign persons in this affiliate’s country of location (not reported above)

1017
2

13. All other foreign persons (not reported above)

1018
2

14. TOTAL OF DIRECTLY HELD VOTING OWNERSHIP INTERESTS —
Sum of items 7 through 13

100.0 %

1019
2

15. INDIRECT OWNERSHIP IN THIS FOREIGN AFFILIATE — If there is an entry in item 8,
enter U.S. Reporter’s percent of indirect ownership in this affiliate. See Instruction
Booklet, Part I.B.1.c, for instructions on how to calculate indirect ownership percentage.

.

1020

16. Identification of foreign affiliate parent(s) — If there is an entry in item 8 — Enter below, the name(s) and percent(s) of
ownership of each foreign affiliate of the U.S. Reporter named in item 1 holding a direct ownership interest in this foreign
affiliate. Also, for each foreign affiliate in column (a) that is below the first tier in its ownership chain, enter in column (c)
the name of the foreign affiliate that holds a direct ownership interest in it.
Foreign affiliate(s) holding direct ownership interest in this foreign affiliate
Name and ID Number
Enter name and BEA ID Number of foreign
affiliate(s) holding a direct ownership interest
in this foreign affiliate.

Percent of direct
ownership in this
foreign affiliate

BEA
USE
ONLY

Close FY 2008
(b)

(a)

a.

1

2

1

2

1

2

1191

b.

1192

c.

Name of foreign affiliate, if
any, in ownership chain
that holds direct interest in
foreign affiliate named in
column (a)

1193

(c)

.

%

.

%

.

%

.

%

2

TOTAL — Must equal percentage entered in Item 8

1021

17. Do two or more U.S. persons each directly or indirectly own or control at least 10 percent of this foreign affiliate’s voting
rights? Mark (X) one.
1022

1
1

1
2

Yes — Item 9 or 10 must have an entry, and item 18 must be completed.
See Instruction Booklet, Part I.B.2.d.(2).
No — Skip to item 22

18. If the answer to item 17 is "Yes," give name(s) and mailing address(es) of the other U.S. Reporter(s).
Name

Mailing address

BEA USE
ONLY

1025

1

2

3

4

5

BEA USE
ONLY

1026

1

2

3

4

5

BEA USE
ONLY

1027

1

2

3

4

5

Remarks

FORM BE-11B(FN) (REV. 11/2008)

Page 2

%

E

Affiliate ID Number

BE-11B(FN)

Part I — IDENTIFICATION OF FOREIGN AFFILIATE — Continued
19. What is the MAJOR activity of the foreign affiliate?
1029

Industry classification of foreign affiliate (based on sales or gross operating
revenues) — Enter the 4-digit International Surveys Industry (ISI) code(s) and the
sales or gross operating revenues associated with each code. For a full explanation
of each code, see the Guide to Industry Classifications for International
Surveys, 2002. For an inactive affiliate, enter an ISI code based on its last active
period.

(1)
1

20. Largest sales or gross operating revenues

1031

22. 3rd largest sales or gross operating revenues

1032

23. 4th largest sales or gross operating revenues

1033

24. 5th largest sales or gross operating revenues

1034

25. 6th largest sales or gross operating revenues

1035

26. 7th largest sales or gross operating revenues

1036

27. Sales or gross operating revenues not accounted for above

1037

28. TOTAL SALES OR GROSS OPERATING REVENUES — Sum of
items 20 through 27

1038

Bil.
2

$

1030

21. 2nd largest sales or gross operating revenues

Sales or gross
operating revenues

ISI code

1

2

1

2

1

2

1

2

1

2

1

2

2

29. BEA USE
ONLY

1039

2

$

1

2

3

4

5

1

2

3

4

5

1040

Remarks

FORM BE-11B(FN) (REV. 11/2008)

Page 3

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(2)
Thous. Dols.

BE-11B(FN)
Part II — FINANCIAL AND OPERATING DATA OF FOREIGN AFFILIATE
Section A — Income Statement — See Additional Instructions for Part II, Section A, on page 7 at the
back of this form.

Amount

• INCOME

Bil.

30. Sales or gross operating revenues, excluding sales taxes — Must equal item 40, column (1).
(Dealers in financial instruments see Special Instructions, A.1., page 8; insurance companies
see Special Instructions, B.3.a., page 8.)

Mil.

Thous. Dols.

1

2041

$
1

31. Income from equity investments in foreign affiliates — For foreign affiliates owned 20 percent
or more (including those that are majority-owned), report equity in earnings during the reporting
period; for those owned less than 20 percent, report dividends or distributed earnings for
unincorporated affiliates. Do not include interest income.

2042

32. Income from other equity investments

2043

1

33. Certain realized and unrealized gains (losses) — Read the following instructions carefully as they are
based on economic accounting concepts and in some cases may deviate from what is normally required
by U.S. Generally Accepted Accounting Principles. Report gross amount before income tax effect. Include
income tax effect in item 36. Report gains (losses) resulting from:
a. Sales or other dispositions of financial assets, including investment securities; FAS 115 holding gains
(losses) on securities classified as trading securities; and FAS 115 impairment losses. Dealers in
financial instruments (including securities, currencies, derivatives, and other financial instruments) and
finance and insurance companies, see Special Instructions, A.1., page 8.
b. Sales or other dispositions of land, other property, plant and equipment, or other assets, (other than
from the sale of inventory assets in the ordinary course of business), and FAS 144 impairment losses.
(Real estate companies, see Special Instructions, A.2., page 8.)
c. Goodwill impairment as defined by FAS 142.
d. Restructuring costs that reflect write-downs or write-offs of assets or liabilities. (Exclude actual
payments and charges to establish reserves for future expected payments, such as for severance pay,
and fees to accountants, lawyers, consultants, or other contractors.)
e. Disposals of discontinued operations. (Exclude income from the operations of a discontinued segment.
Report such income as part of your income from operations in items 28 and 30.)
f. Re-measurement of foreign 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, including uninsured losses
from accidental damage or disasters and other material items, including write-ups, write-downs, and
write-offs of tangible and intangible assets and gains (losses) from the sales or other dispositions of
capital assets. (Exclude insured losses and legal judgments.)
h. The cumulative effect of a change in accounting principle.

1

i. Change in accounting estimate of provision for expected stock option forfeitures under the
inception method as defined by FAS 123.

2044
1

34. Other income —Specify

2045
1

35. TOTAL INCOME — Sum of items 30 through 34

2046

• COSTS AND EXPENSES

$
1

36. Of which: Foreign income taxes – Provisions for foreign income taxes for FY 2008

2048

37. TOTAL COSTS AND EXPENSES

2050

1

$
1

• NET INCOME
38. NET INCOME (LOSS) — Item 35 minus item 37

2051

$

• ADDENDUM
39. INSURANCE INDUSTRY ACTIVITIES — Premiums earned and losses incurred
Report premiums earned and losses incurred for insurance related activities covered by industry codes 5243
(Insurance carriers, except life insurance carriers) and 5249 (Life insurance carriers).
a. Of the total sales and gross operating revenues reported in item 28, column 2, were any of the sales or
revenues generated by insurance related activities covered by industry codes 5243 or 5249?
2180

1
1

1

Yes – Answer b and c

2

No – Skip to item 40
Amount
NOTE: Complete b and c ONLY if a is answered "Yes."
Bil.

b. 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 policies.

1

2181

$

c. Losses incurred — Report losses incurred for the insurance products covered by b above.
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 the course of settlement.
FORM BE-11B(FN) (REV. 11/2008)

Page 4

1

2182

$

Mil.

Thous.

Dols.

E

Affiliate ID Number

BE-11B(FN)

Part II — FINANCIAL AND OPERATING DATA OF FOREIGN AFFILIATE — Continued
Section B — Distribution of Sales or Gross Operating Revenues — See Additional Instructions for Part II, Section B, on page 7 at
the back of this form.
Distribute sales or gross operating revenues among three categories – sales of goods, sales of services, and investment income. For the
purpose of this distribution, "goods" are normally economic outputs that are tangible and "services" are normally economic outputs that
are intangible. When a sale consists of both goods and services and cannot be unbundled (i.e., the goods and services are not separately
billed), classify the sales as goods or services based on whichever accounts for a majority of the value. Give best estimates if actual
figures are not available. Insurance companies also see Special Instructions, B.3.c. and d., page 8.
40. Sales or gross
operating
Local sales
revenues,
excluding
sales taxes
TOTAL
Column (1) for
a. Column (1)
items 40 and 42
equals item
To other
equals the sum of
30.
To
foreign
columns (2)
unaffiliated
affiliates of
through
(7)
b. Column (1)
customers
the U.S.
item 40
Reporter(s)
equals the
(1)
sum of
column (1) Bil. Mil. Thous. Dols.
(2)
(3)
for items 41,
2
3
1
42 and 43.
2054 $
$
$
• BY TYPE
41. Sales of
goods

2055

42. Sales of
services

2056

Sales to U.S.

(5)

(4)
$

To other
foreign
affiliates of
the U.S.
Reporter(s)

To
unaffiliated
customers

To U.S.
Reporter(s)

4

Sales to other countries

To
unaffiliated
customers

(7)

(6)

5

6

7

$

$

$

5

6

7

1

2

1

43. Investment
income 2057

3

4

1

Section C — Number of Employees and Employee Compensation — See Additional Instructions for Part II, Section C, on
page 7 at the back of this form.
NUMBER OF EMPLOYEES — Employees on the payroll at the end of FY 2008 including part-time employees, but excluding temporary
and contract employees not included on your payroll records. A count taken at some other date during the reporting period may be
given provided it is a reasonable estimate of employees on the payroll at the end of FY 2008. If the number of employees at the end of
FY 2008 (or when the count was taken) was unusually high or low due to temporary factors (e.g., a strike), enter the number of
employees that reflects normal operations. If the number of employees fluctuates widely during the year due to seasonal business
variations, report the average number of employees on the payroll during FY 2008. Base such an average on the number of employees
on the payroll at the end of each pay period, month or quarter. If precise figures are not available, give your best estimate.
EMPLOYEE COMPENSATION — Sum of wages and salaries and employee benefit plans. Expenditures made by an employer in
connection with the employment of workers, including cash payments, stock based compensation, payments in-kind, and employer
expenditures for employee benefit plans including those required by statute. 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. DO NOT include amounts related to activities of a prior
period, such as those capitalized or charged to inventories in prior periods.
Number of
employees

• NUMBER OF EMPLOYEES

1

44. TOTAL NUMBER OF EMPLOYEES — Sum of items 45 and 46
By Standard Occupation Classification (SOC) — See Additional Instructions on page 7, at the
back of this form, for a list of the major SOC groups
45.
Managerial, professional and technical employees (SOC 11-29)

2065
1
2066
1

46.

All other employees (SOC 31-55)

2067

Amount
Bil.

• EMPLOYEE COMPENSATION

1

47. TOTAL EMPLOYEE COMPENSATION — Sum of items 48 and 49

2070

By Standard Occupation Classification (SOC)
48.

1

Managerial, professional and technical employees (SOC 11-29)

2073
1

49.

All other employees (SOC 31-55)

2074

50. If total employee compensation, item 47, is zero, is the compensation on the payroll of another foreign
affiliate?
2075

1

1

1

2

51. BEA USE
ONLY

Yes
No — Explain why compensation is zero.

1

2

3

2076

Remarks

FORM BE-11B(FN) (REV. 11/2008)

Page 5

4

5

Mil. Thous. Dols.

BE-11B(FN)
Part II — FINANCIAL AND OPERATING DATA OF FOREIGN AFFILIATE — Continued
Section D — Balance Sheet — See Additional Instructions for Part II, Section D, on page 7 at the back
of this form.

Balance at close
of fiscal year
Bil.

• ASSETS

Mil.

Thous. Dols.

1

52.

Of which: Property, plant, and equipment, net

2084

53.

TOTAL ASSETS

2090

1

• LIABILITIES
54.

TOTAL LIABILITIES

2094

$
1

• OWNERS’ EQUITY — INCORPORATED AFFILIATE ONLY, complete items 55 through 61
55.

$
1

Capital stock and additional paid-in capital

2095
1

56.

Retained earnings (deficit)

2096

Balance at close
of fiscal year

Accumulated other comprehensive income (loss)

Bil.

Mil.

Thous. Dols.

1

57.

Translation adjustment component

2097

$
1

58.

All other components

59.

Total accumulated other comprehensive income (loss) —
Equals sum of items 57 and 58.

2098

$
1
2099
1

60. Other — Include treasury stock and involuntarily (or legally) restricted earnings —Specify

2100
1

61.

TOTAL OWNERS’ EQUITY (INCORPORATED FOREIGN AFFILIATE) — Equals item 53
minus item 54 and, equals the sum of items 55, 56, 59, and 60.

2101

• OWNERS’ EQUITY — UNINCORPORATED AFFILIATE ONLY, complete items 62 and 63
62.

$
1

TOTAL OWNERS’ EQUITY (UNINCORPORATED FOREIGN AFFILIATE) —
Equals item 53 minus item 54.

2102

$
1

63.
64.

Translation adjustment — Cumulative amount at year end (per FAS 52) — That portion of
item 62 representing the affiliate’s cumulative translation adjustment account.

2103

BEA USE
ONLY

2064

1

Section E — Property, Plant and Equipment (PP&E) — See Additional Instructions for Part II,
Section E on page 7 at the back of this form.
PP&E includes land, timber, mineral and like rights owned, structures, machinery, equipment, special tools,
and other depreciable property; construction in progress; and capitalized and expensed tangible and
intangible exploration and development costs, but excludes other types of intangible assets, and land held
for resale.

Amount
Bil.

Mil.

Thous. Dols.

1

65.

Expenditures for new and used property, plant, and equipment (PP&E)

2109

66.

Current-period depreciation and depletion — Current-period charges against property, plant, and
equipment.

2111

67.

BEA USE
ONLY

1

2

3

$
1

4

5

2116

Section F — Interest and Taxes
68.

69.
70.

71.
72.

Amount
Bil.

Interest income — Interest received or due to the affiliate from all payors (including affiliated
persons), net of tax withheld at the source. Include all interest receipts included in items 30 and 34.
Do not net against interest expensed, item 69.

2124

Interest expensed or capitalized — Interest expensed or capitalized by the affiliate, paid or due to all
payees (including affiliated persons), gross of tax withheld. Do not net against interest income, item 68.

2125

Taxes (other than income and payroll taxes) and nontax payments (other than production
royalty payments) — Report all such taxes and nontax payments whether or not included in
revenues or expenses in the income statement. Include amounts paid or accrued for the year, net of
refunds or credits, to foreign governments, their subdivisions and agencies for —
a. Sales, value added, consumption, and excise taxes collected by the affiliate on goods and
services that the affiliate sold;
b. Property and other taxes on the value of assets and capital;
c. Any remaining taxes (other than income and payroll taxes); and
d. Import and export duties, license fees, fines, penalties, and all other payments or accruals of
nontax liabilities (other than production royalty payments for natural resources).
BEA USE
ONLY

2129

BEA USE
ONLY

2143

1

$
1

1

2127

1

2

3

4

5

1

2

3

4

5

Remarks

FORM BE-11B(FN) (REV. 11/2008)

Page 6

Mil.

Thous. Dols.

2008 ANNUAL SURVEY OF U.S. DIRECT INVESTMENT ABROAD
FORM BE-11B(FN)
ADDITIONAL INSTRUCTIONS BY ITEM
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
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

Part I — IDENTIFICATION OF FOREIGN AFFILIATE
7. Ownership by U.S. Reporter named in item 1.
Equity interest is the U.S. Reporter’s direct ownership in the total
nonvoting equity including nonvoting stock and a limited partner’s
interest in a partnership.
Voting interest is the U.S. Reporter’s direct ownership in just the
voting equity of the affiliate. Examples of voting equity include
voting stock and a general partner’s interest in a partnership.
Thus, a U.S. Reporter could have a 100 percent direct voting
interest in an affiliate but own less than 100 percent of the
affiliate’s total equity.
20.—28.
Sales or gross operating revenues of foreign affiliate, by
industry of sales or gross operating revenues. See Additional
Instructions for Part II, Section A, item 30 below.
Holding companies (ISI code 5512) must show total income as
reported in item 35. To be considered a holding company, income
from equity investments (items 31 and 32) must be more than 50
percent of total income (item 35). In addition, normally at least 50
percent of total assets must consist of investments in affiliates. ISI
code 5512, (holding company), is an invalid classification if more
than 50 percent of income generated, or expected to be generated,
by an affiliate is from non-holding company activities.
Dealers in financial instruments and finance, insurance, and
real estate companies see Special Instructions on page 8.

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 (SOC).

Part II — FINANCIAL AND OPERATING DATA OF FOREIGN
AFFILIATE
• Section A — Income Statement
30. Sales or gross operating revenues, excluding sales taxes —
Report gross operating revenues or gross sales minus returns,
allowances, and discounts. Exclude sales or consumption taxes
levied directly on the consumer. Exclude net value-added and
excise taxes levied on manufacturers, wholesalers, and retailers.
Include revenues generated during the year from the operations of
a discontinued business segment, but exclude gains or losses
from disposals of discontinued operations. Report such gains or
losses on page 4, item 33. Affiliates classified in ISI codes 5223,
5224, 5231, 5238, 5252 and 5331 report interest income on this
line. Insurance companies with ISI codes 5243 and 5249 should
include gross investment income in this item. Dealers in financial
instruments and finance, insurance, and real estate companies see
Special Instructions on page 8.

47. Employee compensation — Consists of wages and salaries of
employees and employer expenditures for all employee benefit
plans.
Wages and salaries — Report 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, stock based compensation, and commissions.
Exclude commissions paid to independent personnel who are not
employees.
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.")
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 of business expenses.

31. Income from equity investments in foreign affiliates —
Report income from equity investments of all foreign affiliates
whether or not they are required to file a form BE-11B. Do not
report interest income here. Report interest in item 30 or 34 as
appropriate.
32. Income from other equity investments — Do not include
interest income here. Report interest in item 30 or 34 as
appropriate.
34. Other income — Report non-operating and other income not
included in items 30—33.
36. Foreign income taxes — Exclude U.S. income taxes.

Employee benefit plans — Report employer expenditures for all
employee benefit plans including those mandated by government
statute, those resulting from collective bargaining contracts and
those that are voluntary. 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. Also, include deferred post employment and post retirement
expenses per FAS 106. If plans are financed jointly by the
employer and the employee, include only the contributions of the
employer.

• Section B — Distribution of Sales or Gross Operating
Revenues

40.—43.
Disaggregate the total sales or gross operating revenues into sales
of goods, investment income, and sales of services.
41. Sales of goods — Goods are normally economic outputs that are
tangible.
42. Sales of services — Services are normally economic outputs that
are intangible. Report as sales of services:

• Commissions and fees earned by companies engaged in finance
and real estate activities.

• Premiums earned by companies engaged in insurance activities.

NOTE: 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.
• Commissions earned by agents or brokers (i.e., wholesalers)
who act on behalf of buyers and sellers in the wholesale
distribution of goods. NOTE: Agents or brokers do not take title
to the goods being sold.
Report the source of real estate rental income in columns 2
through 7 based on the location of the property.
43. Investment income — Report dividends and interest generated
by finance and insurance activities as investment income. NOTE:
Report commissions and fees as sales of services in item 42.

• Section C — Number of Employees and Employee

• Section D — Balance Sheet
52. Property, plant, and equipment net — Report net book value of
land, timber, mineral rights and similar rights owned. Also include
structures, machinery, equipment, special tools, deposit containers,
construction in progress, and capitalized tangible and intangible
exploration and development costs of the foreign
affiliate. Include items on capital leases from others, per FAS 13.
Exclude all other types of intangible assets, and land held for
resale. (Unincorporated affiliates include items owned by the
U.S. Reporter(s) but in the affiliate’s possession whether or not
carried on the affiliate’s books or records. However, insurance
companies see Special Instructions B.2, page 8.)
55. Capital stock and additional paid-in capital — Include
common and preferred, voting and nonvoting capital stock and
additional paid-in capital.
56.

Retained earnings (deficit) — Include earnings retained by the
corporation and legally available for dividends; and earnings
voluntarily restricted.

58. All other components of owner’s equity — Include the
cumulative balance of unrealized holding gains and losses due to
changes in the valuation of available-for-sale securities per FAS
115 and any other comprehensive income items required to be
displayed separately from retained earnings as per FAS 130.

Compensation

• Section E — Property, Plant and Equipment (PP&E)

45., 46., 48., and 49.
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

FORM BE-11B(FN) (REV. 11/2008)

65. Expenditures for new and used PP&E — Include items leased
from others (including land) under capital leases. Exclude items
the affiliate has sold under a capital lease.
Exclude from expenditures all changes in PP&E, resulting from
a change in the entity (e.g., mergers, acquisitions, divestitures,
etc.) or accounting principles during FY 2008.

Page 7

SPECIAL INSTRUCTIONS FOR DEALERS IN FINANCIAL
INSTRUMENTS, FINANCE COMPANIES, INSURANCE
COMPANIES AND REAL ESTATE COMPANIES

A. Certain realized and unrealized gains (losses) for (1) dealers in
financial instruments and finance and insurance companies,
and (2) real estate companies.
1. Dealers in financial instruments (including securities,
currencies, derivatives, and other financial instruments)
and finance and insurance companies — Include in item 33:
• impairment losses as defined by FAS 115,
• realized gains and losses on trading or dealing,

2. Do not include assets of the U.S. Reporter held in the country of
location of the affiliate that are for the benefit of the U.S.
Reporter’s policyholders.

• unrealized gains or losses, due to changes in the valuation
of financial instruments, that flow through the income
statement, and
• goodwill impairment as defined by FAS 142.

3. Instructions for reporting specific items

EXCLUDE from item 33, unrealized gains or losses due to
changes in the valuation of financial instruments that are taken
to other comprehensive income. Reflect such changes in item
58 (all other components of accumulated other comprehensive
income (loss)).
EXCLUDE from item 33, income from explicit fees and
commissions. Include income from these fees and commissions
as operating income in items 28 and 30 and as sales of services in
item 42.
2. Real estate companies — Include in item 33:
• impairment losses, as defined by FAS 144 and

a. Sales or gross operating revenues, excluding sales
taxes (item 30) — Include items such as earned premiums,
annuity considerations, gross investment income, and items
of a similar nature. Exclude income from equity investments
in unconsolidated business enterprises that is to be reported
in item 31 and exclude certain realized and unrealized gains
or losses that are to be reported in item 33.
b. Certain realized and unrealized gains (losses)
(item 33) — See Special Instructions, A.1.
c. Sales of services (item 42, column 1) — Include premium
income and income from other services, if any. See
Additional Instructions for Part II, Section B., item 42, on
page 7.

• goodwill impairment as defined by FAS 142.
EXCLUDE the revenues earned and expenses incurred from the
sale of real estate you own. Such revenues should be reported as
operating income in items 28, 30, and 40 and as sales of goods in
item 42. Such expenses, including the net book value of the real
estate sold, should be reported as costs of goods sold. Do not net
the expenses against the revenues.
B.

procedures, not at rates promulgated by national insurance
departments, e.g., include assets not acceptable for inclusion in
the annual statement to an insurance department, such as:
1. non-trusteed or free account assets and 2. nonadmitted
assets, including furniture and equipment, agents’ debit
balances, and all receivables deemed to be collectible. Include
mandatory securities valuation reserves that are appropriations
of retained earnings in the owners’ equity section of the
balance sheet not in the liability section.

d. Investment income (item 43, column 1) — Report that
portion of sales or gross operating revenues that is
investment income. However, report any gains or losses on
investments, in accordance with Special Instructions, A.1.
See Additional Instructions for Part II, Section B, item 43,
on page 7 to determine the location of the transactor of
investment income.

Special Instructions for insurance companies
1. When there is a difference between the financial and operating
data reported to the stockholders and the data reported in the
annual statement to an insurance department, prepare the BE-11
on the same basis as the annual report to the stockholders.
Valuation should be according to normal commercial accounting

FORM BE-11B(FN) (REV. 11/2008)

Page 8

e. Expenditures for property, plant, and equipment
(item 65) — Include expenditures WHEREVER CLASSIFIED IN
THE BALANCE SHEET (e.g., include expenditures that have
been classified in "other noncurrent assets").