Form 2007 BE-12(LF) 2007 BE-12(LF) 2007 BE-12(LF)

FORM

BE-12(LF)

(REV. 12/2007)

BEA Identification Number

OMB No. 0608-0042: Approval Expires 11/30/2010

MANDATORY — CONFIDENTIAL

2007 BENCHMARK SURVEY OF FOREIGN DIRECT INVESTMENT
IN THE UNITED STATES
(LONG FORM)
DUE DATE: MAY 31, 2008
ELECTRONIC
FILING:

Go to www.bea.gov/efile for details

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.
Name of U.S. affiliate
1002 0

OR
MAIL
REPORTS
TO:

c/o (care of)

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

1010 0

Street or P.O. Box
1003 0

OR
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

State

City
1004 0

0998 0

ZIP Code

Foreign Postal Code

1005 0

OR

OR
FAX
REPORTS
TO:

(202) 606-1905*

*See the NOTE at the bottom of this page
if you plan to fax your report to BEA.

0

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. If the U.S. affiliate is a real estate
investment with no U.S. headquarters, give the name (if any) and location
of the real estate. If the real estate is in more than one location, give the
name and location of the real estate with the largest gross book value.
Name of U.S. affiliate
1300 0

ASSISTANCE
be12/[email protected]

Email:
Telephone:

(202) 606-5577

FAX:

(202) 606-5319

Copies of
blank forms:

Street or P.O. Box
1301 0

City

State

1302 0

1304 0

www.bea.gov/fdi
ZIP Code

Definitions of key terms – See pages 28 and 29.

1303 0

IMPORTANT
Please review the Instructions starting on page 27 before completing this form. Insurance and real estate companies
see Special Instructions starting on page 32.
• Who must file BE-12(LF) – Form BE-12(LF) must be filed for a nonbank majority-owned U.S. affiliate with total
assets, sales or gross operating revenues, or net income greater than $175 million (positive or negative). For more
information see instruction I.A.2 on page 28. If you do not meet these filing criteria, see instruction I.A.1 starting on
page 27 to determine which form to file.
• Accounting principles – If feasible use U.S. Generally Accepted Accounting Principles to complete Form
BE-12(LF) unless you are 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 non-bank U.S. affiliates in which it directly or indirectly owns more than 50 percent of the
outstanding voting interest. The consolidation rules are found in instruction IV.2 on page 29.
• 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

Address 1029 0
1030 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.
Authorized official’s signature

1031 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 27 for more details.

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

Bil.

1001

1 Area code

Number

0999

1 Area code

Number

2 Extension

0990 0 Print or type name
0992 1 Telephone number

Date
0991 0 Print or type title
2 Extension

3 FAX number

May FAX and/or email be used in correspondence between your enterprise and BEA, including FAX’ed reports, and/or to discuss
questions relating to this survey that may contain information about your company that you may consider confidential? NOTE: The
Internet and telephone systems are not secure means of transmitting confidential information unless it is encrypted. If you choose to
communicate with BEA via FAX or electronic mail, BEA cannot guarantee the security of the information during transmission, but will treat
information we receive as confidential in accordance with Section 5(c) of the International Investment and Trade in Services Survey Act.
1027

Email: 1
1

1032

FAX:

1
1

1
2
1
2

Yes (If yes, please print your email address.)
No

Email address (Please print)
0
1028

Yes
No
PLEASE CONTINUE ON PAGE 2

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BE-12(LF), Page 1, Pantone 349 Green, 10%

PART I – IDENTIFICATION OF U.S. AFFILIATE
Additional Instructions by line item are at the back of this form starting with Section IV of the
instructions on page 29.
IDENTIFICATION OF U.S. AFFILIATE
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

1

U.S. Generally Accepted Accounting Principles

2

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.

3

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 – Is more than 50 percent of the voting interest in this
U.S. affiliate owned by another U.S. affiliate of your foreign parent?

Foreign Parent
10 to 100 percent

Foreign
United States

U.S. affiliate A
>50 percent

U.S. affiliate B

U.S. affiliate B should be consolidated on
the BE-12 report for U.S. affiliate A because
U.S. affiliate B is more than 50 percent
owned by U.S. affiliate A.

NOTE – Arrows connecting boxes represent direction of ownership
1400 1

1

1

Yes

If "Yes" – Do not complete this report unless exception 2d described in the
consolidation rules on page 29 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 2. The BE-12 Claim For Not
Filing can be downloaded from our web site at: www.bea.gov/fdi

2

No

If "No" – Complete this report in accordance with the consolidation rules on pages 29.

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 starting on page 29. If there was a change in fiscal
year, please review instruction 4.c. on pages 29 and 30.

Month Day
1007

Year

1

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 30.
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.

FORM BE-12(LF) (REV. 12/2007)

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PART 1 – IDENTIFICATION OF U.S. AFFILIATE – Continued
6. Form of organization of U.S. affiliate — Mark (X) one
1011 1

1

Incorporated in U.S.

Reporting rules for unincorporated affiliates are
found in instruction 6 on page 30.
1

1
1

2

U.S. partnership — Reporting rules
for partnerships are found in
instruction 6b on page 30.

3

U.S. branch of a foreign person

4

Limited Liability Company (LLC) —
Reporting rules for LLCs are found
in instruction 6c on page 30.

1

1

1

5

Real property not in 1–4 above — Reporting rules for real
estate are found in instruction V.C. starting on page 32.

6

Business enterprise incorporated abroad, but whose head
office is located in the United States and whose business
activity is conducted in, or from, the United States

7

Other — Specify

7. U.S. affiliates fully consolidated in this report — The consolidation rules are found on page 29.
Except as noted in the consolidation rules, more-than-50-percent-owned U.S. affiliates must be fully
consolidated in this report.
If this report is for a single unconsolidated U.S. affiliate, enter "1" in the box below. If more than one U.S.
affiliate is consolidated in this report, enter the number of U.S. affiliates consolidated. Hereinafter they are
considered to be one U.S. affiliate. Exclude from the consolidation all foreign business enterprises
1
owned
by this U.S. affiliate. Foreign operations in which you own a majority interest are to be
deconsolidated. Include unconsolidated businesses on an equity basis or, if less than 20 percent owned, in
accordance with FAS 115 (Accounting for Certain Investments in Debt and Equity Securities) or the cost
method of accounting.
1012 1

Number — If number is greater than one, complete the Supplement A on page 23.
8. U.S. affiliates NOT fully consolidated — See instruction 8 on page 30.
Number of U.S. affiliates in which this U.S. affiliate has an ownership interest that ARE NOT fully
consolidated in this report.
Number — If number is not zero, complete the Supplement B on page 25.
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 method of accounting, and must notify the unconsolidated U.S. affiliates of
their obligation to file a Form BE-12(LF), BE-12(SF), BE-12 Mini, or BE-12 Bank in
their own names.

1013 1

9. Does this U.S. affiliate own any foreign affiliates or operations?
1014 1
1

1
2

Yes
No

If "Yes" — DO NOT consolidate foreign operations. 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 and reported using the equity method
of accounting. If your ownership interest is less than 20 percent, foreign 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 operations are found in the instruction 2a on page 29.
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

NOTE: Arrows connecting boxes represent direction of ownership
10. Did this U.S. affiliate acquire or establish any U.S. business enterprises or segments during
the reporting period that are now either contained in this report on a fully consolidated basis,
merged into this U.S. affiliate, or reflected as an equity investment?
1015 1
1

1
2

Yes
No

If "Yes" — File a Form BE-13 to reflect each acquisition if you have not done so already.
Forms can be found at: www.bea.gov/fdi

11. Did this U.S. affiliate sell, transfer ownership of, or liquidate any of its U.S. subsidiaries,
operating divisions, segments, etc., during its fiscal year that ended in calendar year 2007?
1016 1
1

1
2

Yes
No

PLEASE CONTINUE ON PAGE 4.
FORM BE-12(LF) (REV. 12/2007)

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PART I – IDENTIFICATION OF U.S. AFFILIATE – Continued
IMPORTANT NOTE – Complete columns 3 and 4 ONLY if the percentage of direct voting ownership given in columns 1 and 2
DOES NOT equal the equity interest. "Voting interest" and "equity interest" are defined in instructions 12–16 on pages 30 and 31.
Ownership — Enter percent of ownership, in this U.S. affiliate, to a tenth of one percent, based on voting and
equity interests if an incorporated affiliate or an equivalent interest if an unincorporated affiliate.
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.
REPORTING PERIOD
Voting interest
Equity interest

12. Ownership held directly by foreign parent(s) of this affiliate —
Give name of each foreign parent with direct ownership. If more
than 4, continue on a separate sheet. See example 1 below for an
illustration of ownership held directly by foreign parents.
1

a.

2

.

1017

.

c.

.

.

.

1062

.

%

.

.

%

.

.

%

%

.

%

.

%

%

.

%

.

%

4

.

%

100.0%

.

4

3

%

%

4

3

%

.

4

%

2

100.0%

%

100.0%

100.0%

IF THERE IS AN ENTRY IN COLUMN (1) OR (2) OF ITEM 13 ABOVE,
PLEASE COMPLETE ITEMS 17 THROUGH 20 BELOW.

Close FY 2007
(1)

(a)
1

17.

.

%

19.

1065

%

.

%

1

20.

1066

Sum of items 17 through 20.
The sum of these percentages must
equal item 13 columns (1) and (2).

.

%

.

%

.

%

3

2

1

1071

3

2

.

3

2

.

%

(3)

%

2

1

BEA
USE
ONLY

3

.

%

1
1064

Close FY 2006
(2)
2

.

1063

18.

For the U.S. affiliate listed in
column (a), give the name of the
U.S. entity (U.S. affiliate) in its
ownership chain that is directly
owned by a foreign parent. If the
U.S. affiliate listed in column (a) is
directly owned by a foreign parent,
also list that U.S. affiliate here.
(b)

Percent of direct voting
interest in this U.S. affiliate
held by the U.S. affiliate
listed in column (a).

Give the name of each U.S. affiliate holding a
direct ownership interest in this U.S. affiliate.
If more than 4, continue on a separate sheet. See
example 2 below for an illustration of a direct
ownership interest held by a U.S. affiliate.

21.

.

%

3

%

1

.

%

2

TOTAL of ownership interests —
Sum of items 12 through 15

▼

NOTE

.

1060

%

3

.

%

4

%

2

1061

15. Ownership held directly by all other foreign persons
or entities

.

%

1

1

14. Ownership held directly by all other U.S. persons
or entities

16.

.

1020

.

%

2

.
4

3

%

1

d.
13. Ownership held indirectly by foreign parent(s) of this U.S.
affiliate through another U.S. affiliate – The foreign parents of
these other U.S. affiliates are indirect foreign parents of this U.S.
affiliate. If you put an entry in column (1) or (2), please complete
items 17–21 below. See example 2 below for an illustration of
ownership held indirectly by foreign parents.

.
2

1019

%

3

%

1

Close FY 2006
(4)
4

.

%

2

1018

Close FY 2007
(3)
3

.

%

1

b.

Close FY 2006
(2)

Close FY 2007
(1)

3

.

%

BEA USE ONLY

EXAMPLES OF DIRECT AND INDIRECT FOREIGN OWNERSHIP
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 percent
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. affiliate A.
U.S. affiliate A has a direct ownership
interest in U.S. affiliate B.

10 to 100 percent
Foreign
United States
U.S. affiliate A
10 to 100 percent
U.S. affiliate B
NOTE: Arrows connecting boxes represent direction of ownership
BEA USE
ONLY

1070

1

FORM BE-12(LF) (REV. 12/2007)

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PART I – IDENTIFICATION OF U.S. AFFILIATE – Continued
22. Major activity(ies) of fully consolidated U.S. affiliate – For an inactive affiliate, select the activity(ies) based
on its last active period; for "start-ups," select the intended activity(ies).
CHECK ALL BOXES THAT DESCRIBE A MAJOR ACTIVITY OF THE FULLY CONSOLIDATED U.S. AFFILIATE
Producer
of goods
(1)

Seller of goods
the U.S. affiliate
does not produce
(2)

1072
1

1

2

2

Producer or
distributor
of information
(3)
3

Provider of
services
(4)
4

3

Real estate
(5)
5

4

Other
(6)
6

5

– Specify

6

23. What is (are) the major product(s) and/or service(s) involved in this (these) activity(ies)? If a product, also state what is done to it, i.e.,
whether it is mined, manufactured, sold at wholesale, transported, packaged, etc. (For example, "manufacture widgets.")
1163

0

INDUSTRY CLASSIFICATION, TOTAL SALES, AND EMPLOYEES OF FULLY CONSOLIDATED U.S. AFFILIATE
Enter the 4-digit International Surveys Industry (ISI) code(s) and the sales and employment associated with each code in items
24 through 33 below. If you use fewer than ten codes, you must account for total sales in items 24 through 32.
Column (1) – ISI Code – For a full explanation of each code, see the Guide to Industry Classifications for International Surveys, 2007. A copy
of this guide can be found on our web site at: www.bea.gov/naics2007. 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).
Book publishers, printers, and Real Estate Investment Trusts – See instructions for items 24–37 on page 31.
Column (2) – Sales – Total sales or gross operating revenues, excluding sales taxes – Gross sales minus returns, allowances, and
discounts; or gross operating revenues. EXCLUDE sales or consumption taxes levied directly on the consumer and excise taxes levied directly
on manufacturers, wholesalers, and retailers. INCLUDE revenues generated during the year from the operations of a discontinued business
segment, but EXCLUDE gains or losses from DISPOSALS of discontinued operations. Report such gains or losses on page 8, item 61.
Derivative instruments – EXCLUDE all gains and losses from derivative instruments. Report gains and losses from
derivative instruments as certain realized and unrealized gains (losses) on page 8, item 61.
Dividends, interest, and investment gains (losses) – INCLUDE dividends and interest earned ONLY by finance and
insurance companies and units. EXCLUDE dividends and interest earned by non-finance and non-insurance companies and
units. Non-finance and non-insurance companies and units should report dividends and interest as other income (page 8,
item 62). EXCLUDE all investment gains and losses. Report all investment gains and losses as certain realized and unrealized
gains (losses) (page 8, item 61).
Holding companies (ISI code 5512) must show total income as reported in item 63 on page 8. Note – A U.S. affiliate that is
a conglomerate must determine its industry code based on the activities of the fully consolidated domestic U.S. business
enterprise. The "holding company" classification, therefore, is often an invalid industry classification for a conglomerate.
Column (3) – Number of employees – INCLUDE all full-time and part-time employees on the payroll at the end of FY 2007, associated with
each ISI code. For employees engaged in manufacturing activities, also see the instructions for column (4) of the state schedule located on
page 16. EXCLUDE contract workers and other workers not carried on the payroll of this U.S. affiliate. 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 that
ended in calendar year 2007. 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.

ISI code

NOTE: ➔ For most U.S. Reporters, the employment distribution in column
(3) is not proportional to the sales distribution in column (2).
Therefore, do not distribute employment by industry in
proportion to sales by industry.

(1)
1

24. Enter code with largest sales

1164

25. Enter code with 2nd largest sales

1165

26. Enter code with 3rd largest sales

1166

27. Enter code with 4th largest sales

1167

28. Enter code with 5th largest sales

1168

29. Enter code with 6th largest sales

1169

30. Enter code with 7th largest sales

1170

31. Enter code with 8th largest sales

1171

32. Enter code with 9th largest sales

1176

33. Enter code with 10th largest sales

Number of employees
engaged in activities
encompassed in each
industry code in
(2)
column (1)
(3)
Mil.
Thous. Dols.
Sales

Bil.

3

1

2
$
2

1

2

3

1

2

3

1

2

3

1

2

3

1

2

3

1

2

3

1

2

3

1

2

3

1177

34. Number of employees of administrative offices and other
auxiliary units – INCLUDE employees at corporate headquarters,
central administrative, and regional offices located in the U.S. that
provide administration and management or support services for the
consolidated U.S. affiliate. Support services include accounting, data
processing, legal, research and development and testing, and
warehousing. Also INCLUDE employees located at a U.S. operating unit
(e.g., a manufacturing plant or warehouse) that provide administration
and management or support services to more than one U.S. operating
unit. EXCLUDE employees located at a U.S. operating unit that
provide administration and management or support services for
only that one unit. Instead, report such employees in column (3) of
items 24 through 33 above on the lines in which column (1) shows the
industry(ies) of the operating unit(s) where these employees are located.

1178

35. Sales and employees accounted for – Sum of items 24 through 34

1172

36. Sales and employees not accounted for above – Item 33 must
have an entry if amounts are entered on this line.

1173

37. TOTAL SALES OR GROSS OPERATING REVENUES (excluding
sales taxes) AND EMPLOYEES – Sum of items 35 and 36,
columns (2) and (3) (Total sales must equal item 59 and also
item 76. Total employees must equal item 89 column (1) and
also item 155 column (3).

3

1

1174

2

3

2

3

2

3

$

38. Number of employees covered by collective bargaining agreements – Of the total employees reported
in item 37, column (3), what is the number covered by collective bargaining agreements. If none, enter zero.
Employees covered by collective bargaining agreements are defined in instruction 38 on page 31.
FORM BE-12(LF) (REV. 12/2007)

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1175

PART I – IDENTIFICATION OF U.S. AFFILIATE – Continued
Reports all amounts in thousands of U.S. dollars.
CROSS-BORDER SERVICES TRANSACTIONS
39. Did this U.S. affiliate receive payments or credits from, or make payments or issue credits to,
persons or entities located outside of the United States for any of the items listed below?
• 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.
1186 1

1

Yes

1

No

2

INSURANCE INDUSTRY ACTIVITIES
Insurance related activities are covered by industry codes 5243 (Insurance carriers, except life insurance
carriers) and 5249 (life insurance carriers).
40a. Of the total sales and gross operating revenues reported on line 37, column 2, were
any of the sales or revenues generated by insurance related activities?
1180 1
1

1
2

Yes – Answer items 40b and 40c
No – Skip to item 41a

Amount
(1)

NOTE: Complete items 40b and 40c ONLY if item 40a is answered "Yes."

Bil.

Thous. Dols.

Mil.

1

40b. 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

$
1

40c. Losses incurred — Report losses incurred for the insurance products covered by question
40b. 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 $

WHOLESALE AND RETAIL TRADE INDUSTRY ACTIVITIES — Goods purchased for
resale without further processing
Wholesale trade industry activities include the wholesaling of durable and nondurable goods.
These activities are covered by industry codes 4231 through 4251.
Retail trade industry activities are covered by industry codes 4410 through 4540.
41a. Of the total sales and gross operating revenues reported on line 37, column 2, were any
of the sales or revenues generated by wholesale or retail trade activities?
1
1183
1

1
2

Yes – Answer items 41b and 41c
No – Skip to item 42

Amount
(1)

NOTE: Complete items 41b and 41c ONLY if item 41a is answered "Yes."

Bil.

Thous. Dols.

Mil.

1

41b. Enter the cost of goods purchased for resale without further processing
during the fiscal year that ended in calendar year 2007

1184

$

BALANCES
Close FY 2006
(Unrestated)

CLOSE FY 2007
(1)
Bil.

41c. Enter the closing balances at the end of fiscal years 2007
and 2006 of the inventory of goods purchased for resale
without further processing.

1185

Mil.

(2)
Thous. Dols.

Bil.

1

2

$

$
1

BEA USE ONLY

1187

1200 1

2

3

4

5

1201 1

2

3

4

5

1202 1

2

3

4

5

1203 1

2

3

4

5

FORM BE-12(LF) (REV. 12/2007)

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Mil.

Thous. Dols.

PART II – FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE
Report all amounts in thousands of U.S. dollars.
Section A — BALANCE SHEET
NOTE — Disaggregate all asset and liability items in the detail shown. Show receivables
and payables between the U.S. affiliate and the foreign parent group(s) in the proper
asset and liability accounts of the U.S. affiliate rather than as a net amount. An
illustration of foreign parent group is at the bottom of page 9. Also show receivables and
payables between the U.S. affiliate and foreign affiliates owned by this U.S. affiliate.
Insurance companies see page 32, V.A., for special instructions.
• ASSETS
42. Cash items — Deposits in financial institutions and other cash items. 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(s). Include them
below in item 43a, current receivables.
2101
43a. Current receivables (gross amount before allowance for doubtful accounts) —
Trade accounts, trade notes, and other current receivables. Include CDs and other
deposits held by the foreign parent group(s). (See note in item 42 above.)
2102

BALANCES
Close FY 2006
(Unrestated)

Close FY 2007
(1)
Bil.

Mil.

(2)

Thous. Dols.

1

Bil.

Mil.

Thous. Dols.

2

$

$

1

2

1
43b. Allowance for doubtful accounts — Include doubtful current receivable amounts
reported in item 43a plus any doubtful noncurrent receivable amounts reported in
item 48 (other noncurrent assets).
2103 (
1
44. Inventories — Land development companies, exclude land held for resale (include in
item 45); finance and insurance companies, exclude inventories of marketable
2104
securities (include in item 45 or item 48, as appropriate).
1
45. Other current assets, including land held for resale and
2105
current marketable securities.
46. Equity investment in unconsolidated U.S. affiliates and all foreign entities —
Include all U.S. and foreign investments that are to be reported on the equity basis.
Include equity in undistributed earnings since acquisition. NOTE: Foreign operations
in which you own an interest of 20 percent or more, including those in which you
1
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.
2106
47. Property, plant, and equipment, net — Include land, timber, mineral rights, structures,
machinery, equipment, special tools, deposit containers, construction in progress, and
capitalized tangible and intangible exploration and development costs of the affiliate, at
historical cost net of accumulated depreciation, depletion, and amortization. Include items 1
on capital leases from others, per FAS 13 (Accounting for Leases), and property you own
that you lease to others under operating leases. Exclude all other types of intangible
assets, and land held for resale. (An unincorporated affiliate should include items owned
by its foreign parent but which are in the affiliate’s possession in the United States
whether or not carried on the affiliate’s own books or records.)
2107
1
48. Other noncurrent assets — Include noncurrent receivables; other investments;
intangible assets not included in item 47 above, net of amortization; and all
noncurrent assets not included above. — Specify major items

2

)

(

)

2

2

2

2

2

2108

49.

2109
TOTAL ASSETS — Sum of items 42 through 48
• LIABILITIES
Current liabilities and long-term debt — Trade accounts, trade notes, other current
liabilities, long-term debt, and securities that are debt per FAS 150 (Accounting for
2111
Certain Financial Instruments with Characteristics of Both Liabilities and Equity).
Other noncurrent liabilities — Items other than those identifiable as
long-term debt, such as deferred taxes and minority interest in consolidated
U.S. subsidiaries. — Specify

50.
51.

1

2

$

$

1

2

$

$

1

2

1

2

2113

TOTAL LIABILITIES — Sum of items 50 and 51
• OWNERS’ EQUITY
Capital stock and additional paid-in capital — Common and preferred,
voting and non-voting capital stock and additional paid-in capital.

52.
53.

2114 $

$

1

2

2116 $

$

1

2

54.

Retained earnings (deficit)

2117

55.

Treasury stock

2118

56.

Accumulated other
comprehensive income (loss)

1

(1)
1

56a. Translation adjustment
56b. All other components

2122

2128

Mil.

(

(2)
Thous. Dols.

Bil.

Mil.

Thous. Dols.

2

$

$

1

2

$

$

56c. Total accumulated other comprehensive income (loss) —
Equals sum of 56a and 56b
57.

2

)

Close FY 2006
(Unrestated)

Close FY 2007
Bil.

(

1

2

1

2

1

2

$

$

2129

Other — Specify major items
2119

58.

TOTAL OWNERS’ EQUITY — Sum of items 53, 54, 55, 56c and 57 for
incorporated U.S. affiliates and those unincorporated U.S. affiliates for which this
breakdown is available. For those unincorporated U.S. affiliates that cannot
provide a breakdown for items 53 through 57, report total owners’ equity in this
item. For both incorporated and unincorporated U.S. affiliates, total owners’
equity must equal item 49 minus item 52.
2120

FORM BE-12(LF) (REV. 12/2007)

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)

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

Section B — INCOME STATEMENT
Insurance companies see page 32, V.A. for special instructions.

(1)

• INCOME
1
59. Total sales or gross operating revenues, excluding sales taxes — Item 59 must equal item 37, column 2
and also item 76.
2149 $
1
60. 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
2150
in item 46. For investments owned less than 20 percent and not subject to FAS 115, report dividends received.
61. Certain realized and unrealized gains (losses) — Note: Please read the following instructions carefully as they
are keyed to economic accounting concepts and in some cases may deviate from what is normally required by U.S.
Generally Accepted Accounting Principles.
Report at gross amount before income tax effect. Include tax effect in item 65 below. Report
gains (losses) resulting from:
a. 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. EXCLUDE legal judgments. Report legal judgments against the U.S. affiliate in item 64.
Report legal settlements in favor of the U.S. affiliate in item 62;
b. 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. Report them in item 64;
c. 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. Real estate companies, see special instructions
IV.61.(2) on page 31;
d. Sales or other disposition of financial assets, including investment securities; FAS 115 holding gains (losses) on
securities classified as trading securities; FAS 115 impairment losses; and gains and losses derived from
derivative instruments. Dealers in financial instruments (including securities, currencies, derivatives, and other
financial instruments) and finance and insurance companies, see special instructions IV.61.(1) on page 31;
e. Goodwill impairment as defined by FAS 142 (Goodwill and Other Intangible Assets);
f. 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 24 through 37;
g. Remeasurement of the U.S. affiliate’s foreign-currency-denominated assets and liabilities due to changes in
1
foreign exchange rates during the reporting period;
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(R) (Share-Based Payments).
2151 $
62. Other income — Legal settlements in favor of the U.S. affiliate, nonoperating, and other income not included
above. — Specify major items

Bil.

1
2152

$
1

63. TOTAL INCOME — Sum of items 59 through 62

2153

• COSTS AND EXPENSES
64. Cost of goods sold or services rendered, and selling, general, and administrative expenses —
Operating expenses that relate to sales or gross operating revenues, item 59, and selling, general, and
administrative expenses. INCLUDE production royalty payments to governments, their subdivisions and
agencies, and to other persons. INCLUDE legal judgments against the U.S. affiliate. INCLUDE depletion charges
representing the amortization of the actual cost of capital assets, but EXCLUDE all other depletion charges.
EXCLUDE goodwill impairment as defined by FAS 142 (Goodwill and Other Intangible Assets). Report such
impairment losses in item 61 above. For guidance on restructuring costs, see item 61b above.
65. 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 in item 61. EXCLUDE production royalty payments.
66. Other costs and expenses not included above, including minority interest in profits and losses that
arise out of consolidation. — Specify major items

$

1
2154

$
1

2156

1
2157
1

67. TOTAL COSTS AND EXPENSES — Sum of items 64 through 66

2158

• NET INCOME
68. Net income (loss) after provision for U.S. Federal, State, and local income taxes — Item 63 minus
item 67
Section C — CHANGE IN RETAINED EARNINGS (DEFICIT) — If retained earnings (deficit)
is not shown as a separate account, show change in total owners’ equity.
69. Balance, close FY ended in 2006 before restatement due to a change in the entity (i.e., due to
mergers, acquisitions, divestitures, etc.) or due to a change in accounting methods or principles,
if any — Enter amount from item 54, column (2); if retained earnings (deficit) is not shown as a separate
account, enter amount from item 58, column (2).
70. Increase (decrease) due to restatement of FY 2006 closing balance. — Specify reason(s) for change

$
1

2159

$

1
2211

$

1
2212
1

71. FY 2006 closing balance as restated — Item 69 plus item 70.

2213

72. Net income (loss) — Enter amount from item 68.

2214

$
1

73. Dividends or earnings distributed — 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. Unincorporated affiliate, enter amount of current- or prior-period net income distributed to owners.
74. Other increases (decrease) in retained earnings (deficit), including stock or liquidating dividends, or
in total owners’ equity if retained earnings (deficit) are not shown as a separate account, including
capital contributions (return of capital). — Specify

1

2215

1
2217

75. FY 2007 closing balance — Sum of items 71, 72, and 74 minus item 73; also must equal item 54 column (1)
if retained earnings (deficit) is shown as a separate account, or item 58, column (1) if retained earnings
(deficit) is NOT shown as a separate account.
FORM BE-12(LF) (REV. 12/2007)

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1
2218

$

Mil.

Thous. Dols.

PART II – FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE – Continued
Report all amounts in thousands of U.S. dollars.
Section D — 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. For the purpose of this distribution, "goods" are normally outputs that are tangible and "services" are
normally 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.
Amount
(1)

NOTE — BEFORE COMPLETING THIS SECTION, PLEASE SEE THE INSTRUCTIONS FOR ITEMS 76
THROUGH 83 ON PAGE 31. Insurance companies also see page 32, V.A. for special instructions.

Bil.

Mil.

Utilities and Oil & Gas Producers and Distributors — To the extent feasible, revenues are to be allocated
between sales of goods and sales of services. Revenues earned from the sale of a product (e.g., electricity, natural
gas, oil, water, etc.) are to be reported as sales of goods. Revenues earned from the distribution or transmission of a
product (e.g., fees received for the use of transmission lines, pipelines, etc.) are to be reported as sales of services.
1

76. TOTAL SALES OR GROSS OPERATING REVENUES, EXCLUDING SALES TAXES —
Equals item 59, and also sum of items 77 through 79

2243

$
1

77. Sales of Goods

2244

$
1

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

2245

$
1

79. Sales of Services, Total — Sum of items 80 through 83

2246

$
1

80.

To U.S. persons or entities

81.

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

2247
1

2248
1

82.

To foreign affiliates owned by this U.S. affiliate. See item 9 on page 3 for a diagram that
illustrates foreign affiliates owned by this U.S. affiliate.

2249
1

83.

To other foreign persons

2250

EXAMPLE OF FOREIGN PARENT GROUP
Foreign Company X

Foreign

>50 percent

>50 percent

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 percent

United States
U.S. affiliate

NOTE: Arrows connecting boxes represent direction of ownership
DEFINITIONS OF KEY TERMS
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 28 for the complete definition of "person."

FORM BE-12(LF) (REV. 12/2007)

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

Section E — EMPLOYEE COMPENSATION
EMPLOYEE COMPENSATION — Base compensation on payroll records. Employee compensation
must cover compensation charged as an expense on the income statement, charged to inventories,
or capitalized during the reporting period. EXCLUDE compensation related to activities of a prior
period, such as compensation capitalized or charged to inventories in prior periods. See instructions
84–86 on page 31 for more detailed definitions of wages and salaries and employee benefit plans.
84. Wages and salaries — Employees’ gross earnings (before payroll deductions), and all
direct and in-kind payments by the employer to employees.

(1)
Bil.

Mil.

Thous. Dols.

1

2251

$
1

85. Employee benefit plans — Employer expenditures for all employee benefit plans,
including those required by government statute, such as employer’s Social Security taxes,
those resulting from collective bargaining contracts, and those that are voluntary.

2252

86.

2253

1

TOTAL EMPLOYEE COMPENSATION — Sum of items 84 and 85

$

Section F — EMPLOYEES AND EMPLOYEE COMPENSATION BY STANDARD
OCCUPATION CLASSIFICATION (SOC) GROUPS
Please report employees and employee compensation by SOC.
See instructions 87–89 on page 32 for a list of the major SOC groups.
Column (1) – Number of employees at close of FY 2007 – MUST equal the number
reported on page 5, item 37, column (3).

(1)

Column (2) – Employee compensation for FY 2007 – MUST equal the amount
reported in item 86 above.
87. Managerial, professional, and technical employees (SOC 11–29)

(1)

90. Current liabilities and
1
long-term debt –
Column (1) must
equal item 50,
column (1).
2254 $

Mil.

1

2

1

2

1

2

(2)

Thous. Dols. Bil.

Mil.

Thous. Dols. Bil.

2

3

Mil.

With other
foreign persons
or entities

With U.S. persons
or entities

(4)

Thous. Dols. Bil.

Mil.

(5)

Thous. Dols. Bil.

4

5

$

$

$

$

2

3

4

5

NOTE — Include
certificates of deposit
and other deposits held
by the foreign parent
group(s) that would
otherwise be included
in cash, item 42. (See
Note in item 42.)
2256 $

$

$

$

$

Section H — LAND AND OTHER PROPERTY, PLANT, AND EQUIPMENT
Land and other property, plant, and equipment includes all land and other property,
plant, and equipment carried anywhere on the U.S. affiliate’s balance sheet, whether or
not with the intent of holding and actively using the asset in the operating activity of
the business. Land refers to any part of the earth’s surface. Include land being leased
from others under capital leases. Other property, plant, and equipment includes:
Timber, mineral and like rights owned; all structures, machinery, equipment, special
tools, and other depreciable property; construction in progress; capitalized tangible and
intangible exploration and development costs, and the capitalized value of timber,
mineral, and like rights leased by the affiliate from others under capital leases. On the
balance sheet these items may be carried in other current assets (item 45), in property,
plant, and equipment (item 47), or in other noncurrent assets (item 48).

All acres of U.S.
land owned at close
of FY 2007. Exclude
acres of mineral
rights if you do not
own the land.
(To nearest whole
acre)

92. TOTAL LAND AND OTHER PROPERTY, PLANT, AND EQUIPMENT AT
CLOSE OF FY 2007 — Column (2) must equal item 104 and item 155
column (5)

2

1

$

2354

93. Gross book value of land owned — The portion of item 92, column (2), that is the gross
book value of land owned. Include undeveloped and agricultural land, and also the value of
land you own that is located under developed properties such as office buildings, apartment
buildings, retail buildings, etc. If your accounting and reporting systems do not separately
account for land and building components when buildings sit upon land that you own,
provide your best estimate of the gross book value of the land owned.

Amount
(1)
Bil.
1
2356

$
1

BEA USE ONLY

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Thous. Dols.

(2)
Bil. Mil. Thous. Dols.

Number

Exclude items that the affiliate has sold on a capital lease basis.

Mil.

Gross book value of all
land and other property,
plant, and equipment at
historical cost
(Include gross book
value of mineral rights)

(1)

FORM BE-12(LF) (REV. 12/2007)

Thous. Dols.

2262

1

91. Current and noncurrent
receivables — Column
(1) must equal item 43a,
column (1), and that part
of item 48, column (1),
that is noncurrent
receivables.

Mil.

$

With foreign
affiliates owned by
this U.S. affiliate
(See page 3 item 9
for diagram
illustrating foreign
affiliates owned by
this U.S. affiliate)
(3)

With foreign
parent group
(FPG) (See
example at the
bottom of page 9
for illustration of
FPG)

Total
Equals sum
of columns (2)–(5)

Bil.

Bil.

2261

89. TOTAL NUMBER OF EMPLOYEES AND EMPLOYEE COMPENSATION —
Column (1) must equal item 37 column (3) and also item 155 column (3).
Column (2) must equal item 86.

CLOSE FY 2007

(2)

Number
2260

88. All other employees (SOC 31–55)

Section G – COMPOSITION
OF LIABILITIES AND
RECEIVABLES OF U.S.
AFFILIATE

Employee
compensation for
FY 2007

Number of
employees at close
of FY 2007

2357

Mil.

Thous. Dols.

PART II – FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE – Continued
Report all amounts in thousands of U.S. dollars.
SCHEDULE OF CHANGE FROM FY 2006 CLOSING BALANCES
TO FY 2007 CLOSING BALANCES

Amount
(1)
Bil. Mil. Thous. Dols.

• BALANCES AT CLOSE FY 2006, BEFORE RESTATEMENT DUE TO A CHANGE IN THE ENTITY
94. Net book value of all land and other property, plant, and equipment, wherever
carried on the balance sheet

1
2386

$

• CHANGES DURING FY 2007
95. Give amount by which the net book value in item 94 would be restated due to a
change in entity (i.e., due to the acquisition of or merger with another company, or
the divestiture of a subsidiary, etc.), if the answer to item 5, 10, or 11 was "Yes," or
due to a change in accounting methods or principles. If a decrease, put amount in
parentheses. Report in item 61 any gains (losses) resulting from the sale or disposition of U.S.
affiliates.

1

2387

Expenditures – Expenditures cover all purchases by, or transfers to, the U.S. affiliate of land and
other property, plant, and equipment. Exclude all changes in land and other property, plant, and
equipment caused by a change in the entity (i.e., due to the acquisition of or merger with another
company, etc.) or by a change in accounting methods or principles during your 2007 fiscal year;
include such changes in item 95 above.
Expenditures by the U.S. affiliate for, or transfers into the U.S. affiliate of,
96.
97.

98.

1

Land – Report expenditures for land except land held for resale.
Report land held for resale in item 101.

2388

Mineral rights, including timber – Report capitalized expenditures to acquire mineral
and timber rights. Exclude capitalized expenditures for the exploration and development
of natural resources. Include those in item 98.

1

2389
1

Property, plant, and equipment other than land and mineral rights
(Exclude changes due to mergers and acquisitions. Report them in item 95.)

2390
1

99. Depreciation expense for FY 2007

2392
1

100. Depletion expense for FY 2007

2393

101. Net book value of sales, retirements, impairments, or transfers out of assets defined for
inclusion in this section, and other decreases (increases) — INCLUDE expenditures for land
held for resale. EXCLUDE amounts relating to the divestiture of U.S. affiliates. Report such
amounts in item 95. Report any gains (losses) resulting from asset impairments and the sale or
disposition of property, plant, and equipment in item 61. — Specify major items
1

2394
1

• BALANCES AT CLOSE FY 2007
102. Net book value — Sum of items 94 through 98, minus sum of items 99 through 101.

2395
1

103. Accumulated depreciation and depletion.

2396

104. Gross book value of all land and other property, plant, and equipment, wherever
carried on the balance sheet — Sum of items 102 and 103; must also equal item 92
column (2) and item 155, column (5).
• ADDENDUM
105. Expensed petroleum and mining exploration and development expenditures — Include
expensed expenditures to acquire or lease mineral rights. Exclude expenditures that are
capitalized and expenditures made in prior years that are reclassified in the current year; such
expenditures are considered to be expenditures only in the year when initially expended.

1

2397

$
1

2398

$
Amount
(1)

Section I — INTEREST AND TAXES

Bil. Mil. Thous. Dols.

106. 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 107).
107. Interest expense plus interest capitalized, paid or due to all payees (including to
foreign parents and affiliates), before deduction of U.S. tax withheld by the
affiliate. Do not net against interest income (item 106).

1
2400

$
1

2401

$

108. 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

1

NOTE: The amount reported in this item SHOULD NOT EQUAL the amount reported in item 65.
2404

1

2

3

2402
4

BEA USE ONLY
FORM BE-12(LF) (REV. 12/2007)

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$
5

PART II – FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE – Continued
Report all amounts in thousands of U.S. dollars.
Section J — TECHNOLOGY
Research and development (R&D) expenditures – Include all costs incurred in performing
R&D, including depreciation, amortization, wages and salaries, taxes, materials and supplies,
overhead — whether or not allocated to others — and all other indirect costs. See instructions
109–116 on page 32 for more details of what to include.
NOTE — Items 109 through 114 pertain to R&D performed by the U.S. affiliate, including R&D
performed by the U.S. affiliate for others under contract. This is the basis on which National
Science Foundation surveys request information on R&D. The FAS 2 (Accounting for Research and
Development Costs) measure of R&D (i.e., R&D from which the firm benefits) is the sum of items
110 and 115.
109. R&D performed BY the U.S. affiliate, total — Sum of items 110 through 114. EXCLUDE
the cost of R&D funded by the U.S. affiliate but performed by others. Report such R&D costs
in item 115 below.

2403

110.

For own account

2405

111.

For Federal Government (i.e., federally financed R&D)

2406

112.

For foreign parent group. See the example at the bottom of page 9 for an illustration of
foreign parent group.

Amount
(1)
Bil. Mil. Thous. Dols.
1

$
1

1

113.

For foreign affiliates owned by this U.S. affiliate. See item 9 on page 3 for a diagram
that illustrates foreign affiliates owned by this U.S. affiliate.

1
2411
1
2412
1

114.

For others under contract

2407
1

115. R&D performed FOR U.S. affiliate by others on a contractual basis

2408

Number
(1)

116. Research and development employees — Report the number of employees engaged in
R&D in the United States (including the District of Columbia, Puerto Rico, and all territories
and possessions of the United States) during the fiscal year that ended in calendar year 2007.
R&D employees are scientists, engineers, and other professional and technical employees,
including managers, engaged in scientific or engineering R&D work, at a level that requires
knowledge of physical or life sciences, engineering, mathematics, statistics, or computer
science at least equivalent to that acquired through completion of a four-year college course
with a major in one of these fields (i.e., training may be either formal or by experience).

1

2409
1

BEA USE ONLY

2410

Section K — EXPORTS AND IMPORTS OF GOODS BY U.S. AFFILIATE ON A SHIPPED BASIS
"U.S. trade in goods" is the physical movement of goods between the customs area of the United States and the
customs area of a foreign country. Goods shipped by, or to, the U.S. affiliate whether or not they were actually charged or
consigned by, or to, the U.S. affiliate, are considered to be trade of the U.S. affiliate.
BASIS FOR REPORTING U.S. TRADE IN GOODS DATA: "Shipped" versus "Charged"
Report U.S. trade in goods data on this BE-12 report using the "shipped" basis. The shipped basis looks at the physical
movement of goods. Data reported on the "shipped" basis for exports are based on (i) when, (ii) to whom, and (iii) to where the
goods were shipped. Data reported on the "shipped" basis for imports are based on (i) when, (ii) from whom, and (iii) from
where the goods were shipped. The "shipped" basis is the same basis on which official U.S. trade statistics are kept and to
which the trade data reported on the BE-12 will be compared.
DO NOT REPORT the U.S. trade in goods data using the "charged" basis. U.S. affiliates normally keep their accounting
records on a "charged basis. "Data reported on the "charged" basis are based on (i) when, (ii) to or from whom, and (iii) to or
from where goods are charged for accounting and bookkeeping purposes. The "charged" basis may be used if there is no
material difference between it and the "shipped" basis. However, if there is a material difference, the "shipped" basis must be
used or adjustments must be made to the "charged" basis data to approximate a "shipped" basis. To adjust "charged" basis data
to a "shipped" basis it may be necessary to look at export and import declarations filed with U.S. customs or shipping and
receiving documents to determine the physical movement of goods.
Differences between the "charged" and "shipped" basis may be substantial. A major difference arises when a U.S. affiliate buys
goods in foreign country A and sells them in foreign country B. Because the goods did not physically enter or leave the United
States, they are not U.S. trade. However, when the U.S. affiliate records the transactions on its books, it would show a
purchase charged to it from country A and a sale charged by it to country B. If the U.S. affiliate’s trade data in this survey
were prepared on the "charged" basis, the purchase and sale would appear incorrectly as a U.S. import and U.S. export,
respectively. Other differences arise when the U.S. affiliate charges the sale of its products to a foreign parent, but ships the
goods directly from the United States to an unaffiliated foreign person. If the data are on the "shipped" basis, this should be a
U.S. export to an unaffiliated foreign person, not to the foreign parent.
117. For this U.S. affiliate is there a material difference between the "shipped" and
"charged" basis? See the discussion above for information on the "shipped" versus the
"charged" basis.
2500 1

1

Yes

1

2

No

118. On what basis will the trade data in this section be prepared? NOTE: The trade data
should be reported using the "shipped" basis.
2501 1
1

1

1

1

"Shipped" basis.

2

"Charged" basis without adjustments because there is no material
difference between the "charged" and the "shipped" basis.

3

"Charged" basis with adjustments to correct for material differences
between the "charged" and the "shipped" basis.

4

Other — Specify

FORM BE-12(LF) (REV. 12/2007)

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Page 12

BE-12(LF), page 12, Pantone 349 Green, 10% and 100%

PART II – FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE – Continued
Report all amounts in thousands of U.S. dollars.
Section K — EXPORTS AND IMPORTS OF GOODS BY U.S. AFFILIATE ON A SHIPPED BASIS — Continued
Report the value of goods exported and imported by the U.S. affiliate during the fiscal year that ended
in calendar year 2007. EXCLUDE services. Software publishers see the instructions below under
packaged general use computer software.
Timing — Only include goods actually shipped between the United States and a foreign country during FY 2007 regardless of
when the goods were charged or consigned. For example, include goods shipped by the U.S. affiliate in FY 2007 that were
charged or consigned in FY 2008, but exclude goods shipped in FY 2006 that were charged or consigned in FY 2007.
In-transit goods — EXCLUDE the value of in-transit goods. In-transit goods are goods that are not processed or consumed by
residents in the intermediate country(ies) through which they transit; the in-transit goods enter those countries only because those
countries are along the shipping lines between the exporting and importing countries. In-transit goods are goods that are en route
from one foreign country to another via the United States (such as from Canada to Mexico via the United States), and goods en
route from one part of the United States to another part via a foreign country (such as from Alaska to Washington State via
Canada).
Capital goods — Include capital goods (e.g., manufacturing equipment used to produce goods for sale) but exclude the value of
ships, planes, railroad rolling stock, and trucks that were temporarily outside the United States transporting people or
merchandise.
Consigned goods — Include consigned goods in the trade figures when shipped or received, even though they are not normally
recorded as sales or purchases, or entered into intercompany accounts when initially consigned.
Electricity and water — Report the value of electricity and water exports and imports if the product value can be separated out
from the service value. Report ONLY the product value (electricity and water). DO NOT report the service value (transmission and
distribution).
Natural gas distribution — INCLUDE the value of natural gas that is exported or imported as trade in goods. However, EXCLUDE
natural gas that you do not produce or sell, but simply transmit for others via a pipeline.
Packaged general use computer software — INCLUDE exports and imports of packaged general use computer software. Value
such exports and imports at the full transaction value, i.e., including both the value of the media on which the software is recorded
and the value of the information contained on the media. EXCLUDE receipts or payments for customized software designed to
meet the needs of a specific user. This type of software is considered a service and should not be reported as trade in goods.
EXCLUDE receipts and payments for software that is transmitted electronically rather than physically shipped. Also EXCLUDE
negotiated licensing fees for software to use on networks.

Column (1) — Valuation of exports and imports — Value U.S. goods exports and imports f.a.s. (free
alongside ship) at the port-of-exportation. INCLUDE all costs incurred up to the point of loading the goods
aboard the export carrier at the U.S. or foreign port of exportation, including the selling price at the interior
point of shipment (or cost if not sold), packaging cost, and inland freight and insurance. EXCLUDE all
subsequent costs such as loading costs, U.S. and foreign import duties, and freight and insurance from the
port of exportation to the port of entry.
Columns (2), (3), and (4) — By (or to) whom the goods were shipped – Shipment by, or to, an entity
refers to the physical movement of merchandise to or from the U.S. customs area by, or to, that entity
regardless of by, or to, whom the goods were charged or consigned. For example, if the U.S. affiliate charges
goods to a foreign parent but ships the goods to an unaffiliated foreign person, record the goods as U.S.
goods exports by the U.S. affiliate to the unaffiliated foreign person (column (4) below).
Goods shipped by an independent carrier or a freight forwarder to or from the United States at the
expense of a U.S. affiliate are, respectively, imports or exports of the U.S. affiliate.

TOTAL

Shipped to (by)
foreign parent
group(s). (See
example at the
bottom of page 9
for illustration of
foreign parent
group.)

Shipped to (by)
foreign affiliates
owned by this U.S.
affiliate. (See
item 9 on page 3
for an illustration
of foreign affiliates
owned by this
U.S. affiliate)

Shipped to
(by) all other
foreign
persons

(1)

(2)

(3)

(4)

Bil. Mil. Thous. Dols. Bil. Mil. Thous. Dols. Bil. Mil. Thous. Dols. Bil. Mil. Thous. Dols.

119. Exports of U.S. affiliate to
foreign persons — Shipped
by U.S. affiliate to foreign
persons (valued f.a.s. U.S. port).
120. Imports of U.S. affiliate from
foreign persons — Sum of
items 121 through 124.
Shipped to U.S. affiliate by
foreign persons (valued f.a.s.
foreign port).

1

2502

2515

IMPORTS BY INTENDED USE:
121.

122.

123.

124.

Capital equipment and other
goods charged by U.S.
affiliate to its fixed asset
accounts.
Goods intended for further
processing, assembly, or
manufacture by this affiliate
before resale to others.
Goods for resale without
further processing, assembly,
or manufacture by this
affiliate.
Other — Specify major items

2529

2530

2528

2531
FORM BE-12(LF) (REV. 12/2007)

Base prints black

2

3

4

$

$

$

$

1

2

3

4

$

$

$

$

1

2

3

4

$

$

$

$

1

2

3

4

$

$

$

$

1

2

3

4

$

$

$

$

1

2

3

4

$

$

$

$
Page 13

BE-12(LF), page 13, Pantone 349 Green, 10 and 100%

PART II – FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE – Continued
Report all amounts in thousands of U.S. dollars.
EXPORTS OF GOODS BY U.S. AFFILIATE TO FOREIGN PERSONS BY COUNTRY OF ULTIMATE DESTINATION
Report exports of goods by the U.S. affiliate to each country of ultimate destination. The country of ultimate
destination is the country where the goods are to be consumed, further processed, or manufactured, as known to the shipper
at the time of exportation. If the shipper does not know the country of ultimate destination, credit the shipment to the last
country to which the shipper knows that the goods will be shipped in the same form as exported.
EXPORTS — Shipped by U.S. affiliate to foreign persons (valued f.a.s. U.S. port)
BEA USE
ONLY
125. TOTAL for each column
on page 14 must equal
sum of items 126
through 154. Also must
equal amounts reported
on page 13 item 119.

(1)

A

128. Brazil

2603

129. Canada

2604

2606

132. Germany

2607

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

2

3

4

5

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

$

$

$

601
302
202
100
650
307
308
611

2608
1

135. Indonesia

2610

136. Italy

2611

612
1

613
1

314
1

137. Japan

2612

138. Korea, Republic of

2613

139. Malaysia

2614

614
1

626
1

617
1

140. Mexico

2615

141. Netherlands

2616

142. Singapore

2617

213
1

319
1

625
1

143. Sweden

324

2618
1

144. Switzerland

2619

145. Taiwan

2620

325
1

628
1

146. Thailand

629

2621
1

147. United Kingdom

Thous. Dols. Bil.

2

1

1

2609

Mil.

$

1

134. India

Thous. Dols. Bil.
$

1

133. Hong Kong

Mil.

$

1

131. France

Thous. Dols. Bil.

$

1

2605

Mil.

(5)

5

1

130. China

(3)

Shipped to all other
foreign persons. Equals
item 119, column (4).

4

1
2602

(2)

Shipped to foreign
affiliates owned by this
U.S. affiliate. Equals
item 119, column (3).
(4)

3

2601

127. Belgium

Bil.

Shipped to foreign parent
group(s). Equals item 119,
column (2).

2

2600

TO COUNTRY OF ULTIMATE
DESTINATION — Enter amounts for all
individual countries to which exports to
each were $500,000.00 or more.

126. Australia

1

TOTAL
Equals item 119,
column (1).

327

2622

Other individual countries to
which exports to each were
$500,000.00 or more — Specify
(Use supplemental sheets if necessary,
to account for all such countries.)
148.
149.
150.
151.
152.
153.
154. Exports to all other
countries not listed or
written-in above for which
exports to each were LESS
than $500,000.00.
FORM BE-12(LF) (REV. 12/2007)

Base prints black

2623

2624

2625

2626

2627

2628

2698

709

$
Page 14

BE-12(LF), page 14, Pantone 349 Green, 10 and 100%

Mil.

Thous. Dols.

PART II – FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE – Continued
Report all amounts in thousands of U.S. dollars.
IMPORTS OF GOODS BY U.S. AFFILIATE FROM FOREIGN PERSONS BY COUNTRY OF ORIGIN
Report imports of goods by the U.S. affiliate from each country of origin. The country of origin is the country where
the goods were grown, mined, or manufactured. If the country cannot be determined, credit the transactions to the country
from which the goods were shipped.
IMPORTS — Shipped to U.S. affiliate by foreign persons (valued f.a.s. foreign port)
TOTAL
Equals item 120,
column (1).

BEA USE
ONLY
125. TOTAL for each column
on page 15 must equal
sum of items 126
through 154. Also must
equal amounts reported
on page 13 item 120.

(7)
(6)

B

6

Bil.

Mil.

Shipped by foreign
affiliates owned by this
U.S. affiliate. Equals
item 120 column (3).
(9)

Shipped by foreign
parent group(s). Equals
item 120 column (2).
(8)

Thous. Dols. Bil.

Mil.

Thous. Dols. Bil.

Mil.

Shipped by all other
foreign persons. Equals
item 120, column (4).
(10)

Thous. Dols. Bil.

7

8

9

10

$

$

$

$

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

7

8

9

10

6

7

8

9

10

6

7

8

9

10

6

7

8

9

10

6

7

8

9

10

6

7

8

9

10

6

7

8

9

10

2600

FROM COUNTRY OF ORIGIN —
Enter amounts for all individual
countries from which imports were
$500,000.00 or more.
6

126. Australia

601

2601
6

127. Belgium

2602

128. Brazil

2603

129. Canada

2604

302
6

202
6

100
6

130. China

2605

131. France

2606

650
6

307
6

132. Germany

308

2607
6

133. Hong Kong

2608

134. India

2609

135. Indonesia

2610

136. Italy

2611

611
6

612
6

613
6

314
6

137. Japan

2612

138. Korea, Republic of

2613

614
6

626
6

139. Malaysia

617

2614
6

140. Mexico

2615

141. Netherlands

2616

142. Singapore

2617

213
6

319
6

625
6

143. Sweden

2618

144. Switzerland

2619

145. Taiwan

2620

324
6

325
6

628
6

146. Thailand

629

2621
6

147. United Kingdom

327

2622

Other individual countries for which
imports from each were
$500,000.00 or more — Specify (Use
supplemental sheets if necessary, to
account for all such countries.)
148.
149.
150.

2623

2624

2625

151.

2626

152.

2627

153.

2628

154. Imports from all other
countries not listed or
written-in above for which
imports from each were
LESS than $500,000.00.

2698

FORM BE-12(LF) (REV. 12/2007)

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6

709

7

8

9

10

$

$

$

$

Page 15

BE-12(LF), page 15, Pantone 349 Green, 10 and 100%

Mil.

Thous. Dols.

PART II – FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE – Continued
Section L — SCHEDULE OF EMPLOYMENT AND PROPERTY, PLANT, AND EQUIPMENT, BY LOCATION

INSTRUCTIONS FOR PAGE 17
The Schedule of Employment and Property, Plant, and Equipment, by Location covers the 50 States, the District of Columbia, and all
territories and possessions of the United States. Include in this schedule only amounts pertaining to those U.S. business enterprises that
are fully consolidated into the reporting U.S. affiliate. Do not consolidate or include amounts for foreign business enterprises or
operations, whether incorporated or unincorporated.
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. For
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. (If the duty assignment is for more than one year, show the employee as being
located in Texas, not California.)

Column (3) — The total number of employees reported in item 155 column (3) MUST equal the total number
of employees reported on page 5 item 37 column (3) and page 10 item 89 column (1).
Column (4) — INCLUDE all employees on the payrolls of operating manufacturing plants in the state.
INCLUDE administrative office and other auxiliary employees located at an operating plant and who serve only
that plant but EXCLUDE administrative office and other auxiliary employees who serve more than one plant.
Column (5) — INCLUDE land and other property, plant, and equipment, whether carried as investments, in
fixed asset accounts, or in other balance sheet accounts. INCLUDE land held for resale, held for investment
purposes, and all other land owned. INCLUDE property you own that you lease to others under operating
leases. INCLUDE land and other property, plant, and equipment on capital leases from others, but EXCLUDE
that on capital leases to others. Value land and other property, plant, and equipment at historical cost before
allowances for depreciation or depletion.
Column (6) — INCLUDE the gross book value of commercial property you own, and commercial property you
use or operate that is leased from others under a capital lease. Commercial property INCLUDES ALL buildings
and associated land leased or rented to others under operating leases. Commercial property INCLUDES
apartment buildings; office buildings; hotels; motels; and buildings used for wholesale, retail, and services
trades, such as shopping centers, recreational facilities, department stores, bank buildings, restaurants, public
garages, and automobile service stations. INCLUDE the value of land associated with these buildings. INCLUDE
office buildings and associated land owned by industrial companies NOT located at industrial sites. EXCLUDE
furniture and equipment located at commercial property. EXCLUDE property you use for agricultural, mining,
manufacturing, or other industrial purposes (such as water and sewage treatment, electric power generation,
and other utility plants), property you use to support these activities, such as research labs and warehouses,
and office buildings located at industrial sites. Also EXCLUDE educational buildings, hospitals, nursing homes,
institutional buildings, and all undeveloped land.
Instructions for items 209, 211, and 212:
209. U.S. offshore oil and gas sites – Use this line to report offshore oil and gas sites located within U.S. claimed territorial waters
but NOT located within the territorial waters of a specific state. Offshore oil and gas sites located within the territorial waters of a
specific state should be reported in that state along with all related property, plant, equipment, and employees. For offshore oil
and gas sites located outside U.S. claimed territorial waters, see item 211e below.
211. Foreign — Except as noted below, do not include employees, land, and other property, plant, and equipment, located outside of
the United States in item 211 or elsewhere on the Schedule of Employment and Property, Plant, and Equipment, By Location.
a. Employees normally located in the United States who are on a temporary duty assignment outside of the country
for one year or less should be reported in the U.S. state, territory, or possession where they are normally
located.
b. Employees normally located in the United States who are on a duty assignment outside of the country for more
than one year and carried on the payroll of the domestic U.S. affiliate should be reported in item 211. Exclude these
employees from the BE-12 report if they are carried on a foreign payroll.
c. Real estate located outside the United States that is owned by the U.S. affiliate and carried on its books but
which generates no revenues for, or reimbursements to, the U.S. affiliate should be reported in item 211. Real
estate located outside the United States that generates revenues for, or reimbursements to, the U.S. affiliate, or
that facilitates the foreign operations of the U.S. affiliate is a foreign subsidiary and should not be consolidated
on this BE-12 report.
d. Machinery and similar equipment located outside the United States at a foreign operating location or subsidiary
that are owned by the foreign operating location or subsidiary should not be consolidated on this BE-12 report.
However, if such machinery or similar equipment are owned by the U.S. affiliate and loaned or leased (under an
operating lease) to the foreign operating location or subsidiary, then it should be included in item 211 "foreign."
e. Use the "foreign" line to report oil and gas sites that (1) are owned by the U.S. affiliate; (2) are located outside of
U.S. claimed territorial waters; (3) are not incorporated in a foreign country; (4) are not organized as a branch;
and (5) do not otherwise have a physical presence in a foreign country as evidenced by plant and equipment or
employees located in a foreign country.
f. Use the category "foreign" to report communication channels that physically exist (i.e., are tangible) that are (1) located
outside of the United States, (2) owned by the U.S. affiliate, and (3) carried directly on the U.S. affiliate’s book (i.e., not
carried on the books of a foreign affiliate owned by the U.S. affiliate). Report satellites in item 212.
212. Other property, plant, and equipment — Use this line to report (1) items that frequently switch locations such as aircraft,
railroad rolling stock, ships of U.S. registry, and vehicles engaged in interstate transportation, (2) items such as pipelines, fiber
optic cable, power lines, etc., located in more than one state that cannot be allocated among specific states, (3) satellites,
underwater cable, and other communication channels that are not located in a specific state, (4) property leased to others, except
land or buildings, under operating leases, and (5) items owned by an unincorporated U.S. affiliate’s foreign parent but which are in
the U.S. affiliate’s possession in the United States.

FORM BE-12(LF) (REV. 12/2007)

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Page 16

BE-12(LF), page 16, Pantone 349 Green, 10 and 100%

PART II – FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE – Continued
Section L — SCHEDULE OF EMPLOYMENT AND PROPERTY, PLANT, AND EQUIPMENT, BY LOCATION

PLEASE REVIEW THE INSTRUCTIONS ON PAGE 16.
Report all amounts in thousands of U.S. dollars.

State
code

LOCATION
155. TOTAL for each column
must equal sum of items
156 through 212

2700

156. Alabama

2701

157. Alaska

2702

158. Arizona

2703
2704

160. California

2705
2706

02

3

4

5

6

4

5

6

2

04

3

2

05

3

4

5

6

2

06

3

4

5

6

4

5

6

2

2

173. Louisiana

2718

174. Maine

2719

175. Maryland

2720

176. Massachusetts
177. Michigan

180. Missouri

2725

181. Montana

2726

182. Nebraska

2727

183. Nevada

2728

184. New Hampshire
185. New Jersey

2729
2730

186. New Mexico

2731

187. New York

2732

188. North Carolina

2733

189. North Dakota

2734

190. Ohio

2735

191. Oklahoma
192. Oregon

2736
2737

193. Pennsylvania

2738

194. Rhode Island

2739
2740

196. South Dakota

2741

197. Tennessee

2742

198. Texas

2743

199. Utah

2744

200. Vermont
201. Virginia

2745
2746

202. Washington

2747

203. West Virginia

2748

204. Wisconsin

2749

205. Wyoming

2750

206. District of Columbia

2751

207. Puerto Rico

2752

208. Virgin Islands

2753

209. U.S. offshore oil and gas
sites – See instruction 209
on page 16.
210. Other U.S. areas – includes
Guam, American Samoa,
and all other territories and
possessions not separately
listed
211. Foreign – See instruction
211 on page 16.
212. Other property, plant and
equipment – See
instruction 212 on page 16.
FORM BE-12(LF) (REV. 12/2007)

Base prints black

6

15

3

4

5

6

16

3

4

5

6

17

3

4

5

6

18

3

4

5

6

4

5

6

2

19

3

2

20

3

4

5

6

2

21

3

4

5

6

4

5

6

2

22

3

2

23

3

4

5

6

2

24

3

4

5

6

25

3

4

5

6

26

3

4

5

6

3

4

5

6

2
2

27
28

2

29

2

3

4

5

6

3

4

5

6

30

3

4

5

6

2

31

3

4

5

6

2

32

3

4

5

6

33

3

4

5

6

3

4

5

6

3

4

5

6

3

4

5

6

3

4

5

6

3

4

5

6

3

4

5

6

3

4

5

6

41

3

4

5

6

42

3

4

5

6

3

4

5

6

3

4

5

6

46

3

4

5

6

47

3

4

5

6

3

4

5

6

3

4

5

6

50

3

4

5

6

4

5

6

2
2
2
2
2
2
2
2
2
2
2

195. South Carolina

6

5

2

2722

2724

5

4

2

2

179. Mississippi

4

6

2721

2723

3

13

2

178. Minnesota

10

5

2714

2717

6

4

2

172. Kentucky

5

3

2

2716

4

12

2713

171. Kansas

09

3

2

168. Illinois

2715

08

3

3

2712

170. Iowa

2
2
2
2
2
2
2

34
35
36
37
38
39
40

44
45

48
49
51

3

2

53

3

4

5

6

2

54

3

4

5

6

2

55

3

4

5

6

2

56

3

4

5

6

3

4

5

6

3

4

5

6

3

4

5

6

3

4

5

6

3

4

5

6

2
2
2

11
43
52

2

65

2756
2

60

2754
2

3

4

5

70

2758

5

2
2759

Bil.
6
$

2

167. Idaho
169. Indiana

Dols.

6

2

2711

(6)
Thous.

5

2708

166. Hawaii

Mil.

4

163. Delaware

2710

4

(5)
Bil.
5
$

3

2707

165. Georgia

3

The portion of column (5)
that is commercial property

01

162. Connecticut

2709

(4)
Number

Gross book value (historical cost)
of all land and other property,
plant, and equipment wherever
carried on balance sheet, FY 2007
closing balance. Must equal item
92 column (2) and item 104.

2

2

164. Florida

(3)
Number

(2)

159. Arkansas
161. Colorado

Number of employees
The portion
at the end of FY 2007 —
of employees in
Total must equal item column (3) that are
37, column (3) and item
manufacturing
89 column (1).
employees

71
Page 17

BE-12(LF), page 17, Pantone 349 Green, 10 and 100%

6

Mil.

Thous.

Dols.

PART III – INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT

Name of U.S. business enterprise shown
in item A on page 1 of this BE-12(LF)
Instructions for Part III – Prepare a separate Part III to report each ownership interest held by a foreign parent, at 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 on page 4 (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 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 (UBO)
213. Number of Part III’s filed
by the U.S. affiliate – If
there is only one, enter "1."

3010

BEA USE ONLY
Control number

1

_

214. What is the name of the foreign parent being reported on in this Part III?
3011

0

Name of foreign parent
215. For the foreign parent named in item 214 above, this Part III is being used to report – Mark (X) one
a.

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

3012

1

a direct ownership interest in the U.S. affiliate (as reported in item 12 on
page 4). See example 1 on page 4 for an illustration of a direct ownership
interest.

b.

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

3013

1

an indirect ownership interest in the U.S. affiliate (as reported in item 13
on page 4). See example 2 on page 4 for an illustration of an indirect
ownership interest.

Close FY 2007 Close FY 2006 "Voting interest" and "equity interest" are defined
in instruction 12–16 on page 30 at the back of this
(1)
(2)

216. If item 215a is marked –
Give percent of –

1

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

2

.

3014

%

1

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

3015

.

%

.

NOTE – Sum of item 216a, (voting interest
owned) columns 1 and 2 of all Part III’s must equal
the sum of item 12 columns 1 and 2. The sum of
item 216b, columns 1 and 2 of all Part III’s must
% equal the sum of item 12 columns 3 and 4.

2

.

%

form. If the U.S. affiliate is a partnership or
Limited Liability Company also see instructions
6.b. and 6.c. on page 30 at the back of this form.

217. Country in which foreign parent named in item 214 –

BEA USE ONLY

a. is incorporated or organized, if a
business enterprise, or is a
resident, if an individual . . . . . . . .
b. is located, if a business
enterprise and the country is
different from that in item 217a . . .

3016 1

3017 1

218. Enter the industry code of the foreign parent named in item 214, 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
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(LF) (REV. 12/2007)

Base prints black

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 18

BE-12(LF), page 18, Pantone 349 Green, 10% and 100%

PART III – INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT – 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 28 for the complete definition of UBO.
NOTE: See the diagrams at the bottom of this page for examples of the UBO.
219. Is the foreign parent named in item 214 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

1
2

Yes – (example 1 below) – Skip to 222
No – (examples 2A and 2B below) – Continue with 220

220. 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 28 for the definition of associated
group. Identifying the UBO as "bearer shares" is not an acceptable response.
3021

0

221. Enter country of UBO. For individuals, see instruction V.F. on page 33.

BEA USE ONLY
3022

1

222. Enter the industry code of the UBO from the list of codes at the bottom of page 18. 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 the UBO, including all
of its majority-owned subsidiaries.
3023

1

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 223 ON PAGE 20
EXAMPLES OF THE ULTIMATE BENEFICIAL OWNER (UBO)

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

The UBO and foreign parent are the
same if the foreign parent is NOT
more than 50 percent 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 percent 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(LF) (REV. 12/2007)

Base prints black

Page 19

BE-12(LF), Page 19, Pantone 349 Green, 10% and 100%

PART III – INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT – Continued

NOTE

▼

Report all amounts in thousands of U.S. dollars.
Data reported in Sections B, C, and D, must be for the fully consolidated U.S. affiliate. The consolidation
rules are found on page 29 at the back of this form.
223. Copy your answer from item 215 on page 18 to the appropriate box below and
follow the applicable instructions.
a.
b.

1

1

1

A direct interest – Complete all items on Part III pages 20 and 21 and then
continue with Part IV on page 22. Do not duplicate data reported on other Part IIIs.

2

An indirect interest – Complete ONLY items 224, 225, and 226 on Part III page 20
and then continue with Part IV on page 22. Do not duplicate data reported on
other Part IIIs.

Section B – INTERCOMPANY BALANCES, INTEREST, DIVIDENDS, AND DISTRIBUTED EARNINGS
BETWEEN THE U.S. AFFILIATE AND THE FOREIGN PARENT NAMED IN ITEM 214
Report all current and long-term intercompany accounts, interest, and dividends or distributed
earnings between the U.S. affiliate and the foreign parent named in item 214.
Capital leases – If leases between the U.S. affiliate and the foreign parent are capitalized, then the
outstanding capitalized value should be reported in items 224 and 225 as an intercompany balance. Lease
payments should be disaggregated into the amounts that are (i) a reduction in an intercompany balance, to be
reported in items 224 or 225, and (ii) interest, to be reported in item 226.
Derivatives Contracts – Exclude the value of outstanding financial derivatives contracts and any payments
or receipts resulting from the settlement of those contracts. For example, the settlements of interest rate
derivatives should NOT be reported as interest or as another type of transaction on this form. Derivatives
contracts are covered by the Treasury International Capital (TIC) Form D, Report of Holdings of, and
Transactions in, Financial Derivatives Contracts with Foreign Residents.
LIABILITIES AND RECEIVABLES

BALANCE

What were the balances owed directly to, and due directly from, the
foreign parent?
• Do NOT net liabilities against receivables.
Report amounts according to the books of the U.S. affiliate.

FY 2007

FY 2006

(1)
Bil.

224. Liabilities owed directly TO the foreign parent named in
item 214 by the U.S. affiliate – Current and long-term

3056

225. Receivables due to the U.S. affiliate directly FROM the
foreign parent named in item 214 – Current and long-term.
Include certificates of deposit and other deposits of the U.S.
affiliate (that would otherwise be included in cash on your balance
sheet) held by the foreign parent. See note in item 42 on page 7.

3057

Mil.

(2)

Thous. Dols. Bil.

1

2

$

$

1

2

Mil.

Thous. Dols.

INTEREST
What were the interest payments and receipts between the U.S. affiliate and the foreign parent
named in item 214?
• Report amounts GROSS OF WITHHOLDING TAXES
• Include interest on capital leases.
• Do NOT net payments against receipts.
Payments or credits by U.S. affiliate to
foreign parent
Gross payments (before
deduction of U.S. tax
withheld)
(1)
Bil.

226. Interest

3076

Mil.

Receipts by or credits to U.S. affiliate from
foreign parent
Gross receipts (before
deduction of foreign tax
withheld)
(3)

U.S. tax withheld
(2)

Thous. Dols. Bil.

Mil.

Thous. Dols. Bil.

Mil.

Foreign tax withheld
(4)

Thous. Dols. Bil.

1

2

3

4

$

$

$

$

Mil.

Thous. Dols.

DIVIDENDS OR DISTRIBUTED EARNINGS
Report dividends as of the date they were declared or paid, GROSS of any U.S. tax withheld. Any subsequent
settlement of dividends declared but not paid SHOULD NOT be reported a second time, but should be reflected
only as a reduction in item 224.
• Exclude stock and liquidating dividends. Report liquidating dividends in item 230.
Report gross amounts of earnings distributed by unincorporated
U.S. affiliates, whether out of current or past earnings.
Payments or credits by U.S. affiliate to
foreign parent

• INCORPORATED U.S. AFFILIATE
227. Dividends — On common and preferred stock, excluding
stock and liquidating dividends
• UNINCORPORATED U.S. AFFILIATE
228. Distributed earnings
1

Gross payments (before
deduction of U.S. tax
withheld)
(1)
Bil.
3074

3075
2

Mil.

U.S. tax withheld
(2)

Thous. Dols. Bil.

1

2

$

$

1

2

$

$

3

4

Mil.

Thous. Dols.

BEA USE ONLY
3106
FORM BE-12(LF) (REV. 12/2007)

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Page 20

BE-12(LF), Page 20, Pantone 349 Green, 10% and 100%

PART III – INVESTMENT AND TRANSACTIONS BETWEEN U.S. AFFILIATE AND FOREIGN PARENT – Continued
Report all amounts in thousands of U.S. dollars.
Section C – CHANGES IN EQUITY HOLDINGS IN THE U.S. AFFILIATE DURING
THE YEAR BY THE FOREIGN PARENT NAMED IN ITEM 214
Entries in Section C are necessary to identify the amount and cause of any changes in equity holdings
by the foreign parent in the U.S. affiliate during the year.
Report the transactions (i.e., market) value of consideration given or received for increases or
decreases in the foreign parent’s equity holdings in the U.S. affiliate.
FOR TRANSACTIONS BETWEEN FOREIGN PARENT AND U.S. AFFILIATE
229. What is the transaction value of the foreign parent’s increase in equity interest?
Include:
• purchases of capital stock by the foreign parent from the U.S. affiliate;
• contributions of equity by the foreign parent that did not result from the issuance of stock
to the foreign parent by the U.S. affiliate;
• capitalization of intercompany debt (report the amount of debt converted to equity as the
transaction value of the equity increase) and adjust the debt balance as appropriate in item 224.
Exclude changes caused by:
• carrying net income to the equity account;
• the effect of treasury stock transactions with persons other than the foreign parent;
3065
• reorganizations in capital structure that do not affect total equity.
230. What is the transaction value of the foreign parent’s decrease in equity interest?
Include:
• 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 the reduction of
issued stock;
• liquidating dividends;
• distributions to the foreign parent following total liquidation of the U.S. affiliate.
Exclude changes caused by:
• carrying net losses to the equity account;
• payment of stock or cash dividends (other than liquidating dividends);
• the distribution of earnings during the period;
• the effect of treasury stock transactions with entities other than the foreign parent;
• reorganizations in capital structure that do not affect total equity.

Bil.

Amount
(1)
Mil. Thous. Dols.

1

$

1
3066

FOR TRANSACTIONS BETWEEN FOREIGN PARENT AND AN ENTITY OTHER THAN U.S. AFFILIATE
What is the transaction value of the ACQUISITION of an equity interest in
the U.S. affiliate by the foreign parent:

$

1

231.

From a U.S. entity other than the U.S. affiliate?

3067

232.

From all foreign entities?

3068

$
1

What is the transaction value of the SALE of an equity interest in the U.S.
affiliate by the foreign parent:

$

1

233.

To U.S. entities other than the U.S. affiliate?

3069

234.

To all foreign entities?

3070

$
1

$

What is the total transaction value of the change in the foreign parent’s
equity interest in the U.S. affiliate?
1

235. This item should equal the sum of items 229, 231, and 232 MINUS the sum of items
230, 233, and 234.
For items 231 through 234 what are the amounts by which
the transactions values reported in those items:

3071

$

For sale or termination
of operations
(items 233 and 234)
(1)
(2)
Mil. Thous. Dols. Bil. Mil. Thous. Dols.

For acquisition
(items 231 and 232)
Bil.

236. Exceed the value carried on the books of the U.S. affiliate?
237. Are less than the value carried on the books of the U.S. affiliate?

3090

3091

1

2

$

$

1

2

$

$

Section D — FOREIGN PARENT’S EQUITY IN U.S. AFFILIATE’S NET INCOME (LOSS), CERTAIN REALIZED AND
UNREALIZED GAINS (LOSSES), AND THE CHANGE IN ALL OTHER COMPONENTS OF ACCUMULATED OTHER
COMPREHENSIVE INCOME (LOSS)
Amount
(1)
Based on the foreign parent’s direct equity in the U.S. affiliate during FY 2007, enter —
238. 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 of item 68.
239. Foreign parent’s share of certain realized and unrealized gains (losses) included in
net income — Enter the foreign parent’s share of item 61.
240. Foreign parent’s share of U.S. Federal, State, and local income taxes that are taxes
on certain realized and unrealized gains (losses) included in net income — Enter the
portion of item 65 that is the income tax effect on the amount reported in item 239.
241. Foreign parent’s share of the CHANGE during fiscal year 2007 in the accumulated
other comprehensive income (loss) balance (excluding the translation adjustment
component) reported on line 56b (all other components) of the balance sheet.
1

PLEASE CONTINUE ON PAGE 22
FORM BE-12(LF) (REV. 12/2007)

Base prints black

BEA USE ONLY

Bil.

Mil.

Thous. Dols.

1
3085

$
1

3086
1

3087
1

3088

$
2

3089

Page 21

BE-12(LF), Page 21, Pantone Green 349, 10% and 100%

PART IV – BALANCES AND INTEREST BETWEEN U.S. AFFILIATE, AS CONSOLIDATED,
AND FOREIGN AFFILIATES OF THE FOREIGN PARENT(S) (FAFPS)
Report all amounts in thousands of U.S. dollars.
242. Does this consolidated U.S. affiliate have accounts or direct transactions with foreign affiliates of the foreign parent
(FAFPs)? See definition of FAFP and example below.
4100 1

1

Yes – Complete the rest of Part IV

1

2

No – Do not complete Part IV

Foreign affiliate of a foreign parent means, with reference to a given U.S. affiliate, any member of the foreign parent group
(see illustration at the bottom of page 9) owning the U.S. affiliate that is not a foreign parent of the U.S. affiliate.
Example
Foreign Company X
(Foreign affiliate of the foreign parent)
>50 percent

>50 percent

Foreign Parent

Foreign Company Y
(Foreign affiliate of the foreign parent)

Foreign
United States

Foreign companies X and Y are
"foreign affiliates of the foreign
parent." Majority owners of the
foreign parent are foreign affiliates of
the foreign parent. Majority-owned
subsidiaries of these majority owners
also are foreign affiliates of the
foreign parent.

U.S. affiliate

NOTE: Arrows connecting boxes represent direction of ownership
Complete Sections A and B below if item 242 above is answered "Yes."
If more rows are needed to list all countries, use additional sheets as necessary.
Photocopies of page 22 may be used for this purpose.
Report all current and long-term intercompany payable and receivable accounts and interest transactions between the U.S. affiliate
and the foreign affiliates of the foreign parent (FAFPs).
Capital leases – If leases between the U.S. affiliate and the FAFPs are capitalized, then the outstanding capitalized values should
be reported as an intercompany liability or receivable balance. Lease payments should be disaggregated into the amounts that are
(i) a reduction in an intercompany liability or receivable balance and (ii) interest.
Derivatives Contracts – Exclude the value of outstanding financial derivatives contracts and any payments or receipts resulting
from the settlement of those contracts. For example, the settlements of interest rate derivatives should NOT be reported as interest
or as another type of transaction on this form. Derivatives contracts are covered by the Treasury International Capital (TIC) Form D,
Report of Holdings of, and Transactions in, Financial Derivatives Contracts with Foreign Residents.
Columns (2) and (3) – Liabilities/Receivables balances by country – What were the balances with the FAFPs at the end of the
year? Do not net payables against receivables.
Column (4) – Interest Paid/Received by country – Include interest on capital leases.
Current and long-term liabilities or receivables

Country of FAFP
Enter amounts for all individual countries
where liabilities or receivables were
$2,000,000.00 or more.

BEA USE ONLY

244. United Kingdom

Bil.
1

2

3

$

$

$

2

3

4

2

3

4

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

2

3

4

100

4101
1
4102
1

245. Netherlands

4103

246. Japan

4104

1

247. Other countries — Specify

Close FY 2006

(3)
(2)
Liabilities of U.S. affiliate TO FAFPs
Mil. Thous. Dols. Bil. Mil. Thous. Dols. Bil.

(1)

Section A — U.S. AFFILIATE’S
LIABILITIES AND INTEREST
PAYMENTS TO FAFP
243. Canada

Close FY 2007

Interest, including
interest on capital leases
(before deduction of U.S.
tax withheld)
(4)
Paid/Accrued

327
319
614

Mil.

Thous. Dols.

4

4105

248.

4106

249.

4107

250.

4108

251.

4109

252. Unallocated – values for countries that
individually amount to less than
$2,000,000.00.
253. TOTAL — Sum of items 243
through 252

709

4110
1
4149

$

Section B — U.S. AFFILIATE’S
RECEIVABLES AND
INTEREST RECEIPTS
FROM FAFP
254. Canada

Bil.
1
4150

257. Japan

4153

258.

4154

259.

4155

260.

4156

261.

4157

262.

4158

263. Unallocated – values for countries that
individually amount to less than
$2,000,000.00.

4159

264. TOTAL — Sum of items 254
through 263
FORM BE-12(LF) (REV. 12/2007)

Base prints black

Mil.

Thous. Dols. Bil.
$

2

3

4

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

2

3

4

$

$

327
319
614

Mil.

Thous. Dols.

4
4

709
1

4199

3

$

1

Other countries — Specify

Thous. Dols. Bil.

3

1
4152

Mil.

Interest received/accrued
(before deduction of foreign
tax withheld)

$

4151

256. Netherlands

100

2

$

2

1

255. United Kingdom

$
Receivables of U.S. affiliate FROM FAFPs
NOTE — Include certificates of deposit and other
deposits of the U.S. affiliate held by the FAFP.

$
Page 22

BE-12(LF), Page 22, Pantone 349 Green, 10% and 100%

Page 23

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BE-12(LF), page 23, Pantone 349 Green, 10%

BUREAU OF ECONOMIC ANALYSIS

5133

5132

5131

5130

5129

5128

5127

5126

5125

5124

5123

5122

5121

5120

5119

5118

5117

5116

5115

5114

5113

5112

5111

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

(2)

2

(1)

1

Name of each U.S. affiliate consolidated (as represented in item 7, Part I)

BEA USE ONLY

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

(3)

Employer Identification Number used
by U.S. affiliate listed in column (2) to
file income and payroll taxes

Supplement A must be completed by a reporting affiliate that consolidates financial and operating data of any other U.S. affiliate(s). The number of U.S. affiliates
listed below plus the reporting U.S. affiliate must agree with item 7, Part I of Form BE-12(LF). Continue listing onto as many additional copied pages as necessary.

NOTE – If you filed a Supplement A or a computer printout of Supplement A with your 2006 BE-15 report, in lieu of completing a new Supplement A, you
may substitute a copy of that Supplement A or computer printout that has been updated to show any additions, deletions, or other changes.

LIST OF ALL U.S. AFFILIATES FULLY CONSOLIDATED INTO THE REPORTING U.S. AFFILIATE

BE-12(LF) Supplement A (2007)

FORM
(REV. 12/2007)

U.S. DEPARTMENT OF COMMERCE

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

(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(LF)

5110

Page number

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

BEA USE ONLY

1

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

Percentage of direct voting
ownership that the U.S. affiliate
named in column (4) holds in the
U.S. affiliate named in column (2). –
Enter percentage to nearest tenth.
(5)

–

OMB No. 0608-0042: Approval Expires 11/30/2010

FORM BE-12(LF) (REV. 12/2007)

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Page 24

BE-12(LF), page 24, Pantone 349 Green, 10%

5159

5158

5157

5156

5155

5154

5153

5152

5151

5150

5149

5148

5147

5146

5145

5144

5143

5142

5141

5140

5139

5138

5137

5136

5135

5134

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

(2)

2

(1)

1

Name of each U.S. affiliate consolidated (as represented in item 7, Part I)

BEA USE ONLY

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

(3)

Employer Identification Number used
by U.S. affiliate listed in column (2) to
file income and payroll taxes

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

BE-12(LF) Supplement A (2007) – LIST OF ALL U.S. AFFILIATES FULLY CONSOLIDATED INTO THE REPORTING U.S. AFFILIATE – Continued

(4)

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

Page number

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

Percentage of direct voting
ownership that the U.S. affiliate
named in column (4) holds in the
U.S. affiliate named in column (2). –
Enter percentage to nearest tenth.
(5)

Page 25

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BE-12(LF), page 25, Pantone 349 Green, 10%

6221

6220

6219

6218

6217

6216

6215

6214

6213

6212
6

6211

(2)

1

1

1

1

1

1

1

1

1

1

2

2

2

2

2

2

2

2

2

2

2

(1)

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

3

3

3

3

3

3

3

3

3

3

BEA USE ONLY

(3)

4

4

4

4

4

4

4

4

4

4

4

Yes
No
2

No
1

Yes
2

No
2

1

Yes

No
1

Yes
2

No
2

1

Yes

No
1

Yes
2

No
1

Yes
2

No
2

1

Yes

No

1

Yes

2

No

2

1

Yes

No

2

1

Yes

1

(4)

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

5

5

5

5

5

5

5

5

5

5

5

Page number

–

–

–

–

–

–

–

–

–

–

–

(5)

6

6

6

6

6

6

6

6

6

6

6

.

.

.

.

.

.

.

.

.

.

.

%

%

%

%

%

%

%

%

%

%

%

Percentage of direct voting
ownership interest that the fully
consolidated U.S. affiliate named
in item A on page 1 of this Form
BE-12(LF), holds in the U.S.
affiliate named in column (2). –
Enter percentage to nearest tenth.
(6)

OMB No. 0608-0042: Approval Expires 11/30/2010

Employer Identification Number
used by U.S. affiliate listed in
column (2) to file income and
payroll taxes

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

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(LF) 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(LF). Continue listing onto as many additional copied pages as necessary.

NOTE – If you filed a Supplement B or a computer printout of Supplement B with your 2006 BE-15 report, in lieu of completing a new Supplement B, you may
substitute a copy of that Supplement B or computer printout that has been updated to show any additions, deletions, or other changes.

U.S. DEPARTMENT OF COMMERCE
BE-12(LF) Supplement B (2007)
BUREAU OF ECONOMIC ANALYSIS
LIST OF ALL U.S. AFFILIATES IN WHICH THE REPORTING AFFILIATE (AS CONSOLIDATED) HAS A DIRECT
OWNERSHIP INTEREST BUT WHICH ARE NOT FULLY CONSOLIDATED

FORM
(REV. 12/2007)

FORM BE-12(LF) (REV. 12/2007)

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Page 26

BE-12(LF), page 26, Pantone 349 Green, 10%

6234

6233

6232

6231

6230

6229

6228

6227

6226

6225

6224

6223

6222

(2)

1

1

1

1

1

1

1

1

1

1

1

1

2

2

2

2

2

2

2

2

2

2

2

2

2

(1)

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(LF) Supplement B (2007) – LIST OF U.S. AFFILIATES – Continued

3

3

3

3

3

3

3

3

3

3

3

3

3

(3)

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

4

4

4

4

4

4

4

4

4

4

4

4

4

2

No

Yes

No
1

Yes
2

No
1

Yes
2

No
2

1

Yes

No
1

Yes
2

No
1

Yes
2

No
1

Yes
2

No
2

1

Yes

No

1

Yes

2

No

1

Yes

2

No

2

1

Yes

No

1

Yes

2

No

2

1

Yes

1

(4)

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

5

5

5

5

5

5

5

5

5

5

5

5

5

–

–

–

–

–

–

–

–

–

–

–

–

–

(5)

Employer Identification Number
used by U.S. affiliate listed in
column (2) to file income and
payroll taxes

Page number

6

6

6

6

6

6

6

6

6

6

6

6

6

.

.

.

.

.

.

.

.

.

.

.

.

.

%

%

%

%

%

%

%

%

%

%

%

%

%

Percentage of direct voting
ownership interest that the fully
consolidated U.S. affiliate named
in item A on page 1 of this Form
BE-12(LF), 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(LF) INSTRUCTIONS
NOTE: Instructions in section IV. are cross referenced by number to the items located on pages 2 to 26 of this form.
Authority – This survey is being conducted pursuant to the
International Investment and Trade in Services Survey Act (P.L. 94-472,
90 Stat. 2059, 22 U.S.C. 3101-3108, as amended, hereinafter "the Act"),
and the filing of reports is MANDATORY pursuant to Section 5(b)(2) of
the Act (22 U.S.C. 3104).
A response is required from persons (in the broad sense, including
companies) subject to the reporting requirements of the BE-12 survey,
whether or not they are contacted by BEA. Also, persons 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 BE-12
Claim For Not Filing, whichever is applicable, by May 31, 2008.
PENALTIES – Whoever fails to report shall be subject to a civil penalty of
not less than $2,500, and not more than $25,000, and to injunctive relief
commanding such person to comply, or both. These civil penalties are
subject to inflationary adjustments. Those adjustments are found in 15
CFR 6.4. Whoever willfully fails to report shall be fined not more than
$10,000 and, if an individual, may be imprisoned for not more than one
year, or both. Any officer, director, employee, or agent of any corporation
who knowingly participates in such violations, upon conviction, may be
punished by a like fine, imprisonment or both (22 U.S.C. 3105).
Notwithstanding any other provision of the law, no person is required to
respond to, nor shall any person be subject to a penalty for failure to
comply with, a collection of information subject to the requirements of
the Paperwork Reduction Act, unless that collection of information
displays a currently valid OMB Control Number. The control number for
this survey is at the top of page 1 of this form.
Respondent Burden – Public reporting burden for this long form is
estimated to vary from 7 to 715 hours per response, with an average of
104 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.
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.
I. REPORTING REQUIREMENTS

A report is required even though the foreign person’s voting
interest in the U.S. business enterprise may have been established
or acquired during the reporting period.
Beneficial, not record, ownership is the basis of the reporting
criteria. Voting securities, voting stock, and voting interest all have
the same general meaning and are used interchangeably
throughout these instructions and the report forms.
Airlines and ship operators – U.S. stations, ticket offices, and
terminal and port facilities of foreign airlines and ship operators
that provide services ONLY to the foreign airlines’ and ship
operators’ own operation are not required to report. Reports are
required when such enterprises produce significant revenues from
services provided to unaffiliated persons.
1. Which form to file – Please review the questions below and
the flow chart on page 28 to determine if your U.S. business is
required to file Form BE-12(LF). Blank forms can be found at:
www.bea.gov/fdi
a. Were at least 10 percent of the voting rights in your
business directly or indirectly owned by a foreign
person at the end of your fiscal year that ended in
calendar year 2007?
Yes – Continue with question b. NOTE: Your business
is hereinafter referred to as a "U.S. affiliate."
No – You are not required to file Form BE-12(LF). File
Form BE-12 Claim For Not Filing by May 31, 2008.
b. Is this U.S. affiliate a bank or bank holding company?
Yes – You are not required to file Form BE-12(LF). File
Form BE-12 Bank by May 31, 2008.
No – Continue with question c.
c. Were more than 50 percent of the voting rights in this U.S.
affiliate owned by another U.S. affiliate at the end of this
U.S. affiliate’s fiscal year that ended in calendar year 2007?
Yes – Continue with question d.
No – Skip to question e.
d. Do different foreign persons hold a direct and an indirect
ownership interest in this U.S. affiliate (exception d to the
consolidation rules)? (The consolidation rules are found in
instruction IV.2. starting on page 29.)

To determine which BE-12 report to file, read the following sections on
this page and review the flow chart and section A.2. on page 28.

Yes – Continue with question e.

A. Who must report – A BE-12 report is required for each U.S.
affiliate, i.e., for each U.S. business enterprise in which a foreign
person or entity owned or controlled, directly or indirectly, 10
percent or more of the voting securities if an incorporated U.S.
business enterprise, or an equivalent interest if an unincorporated
U.S. business enterprise, at the end of the business enterprise’s
fiscal year that ended in calendar year 2007.

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 Form BE-12 Claim For Not Filing
with page 1 and item (e) on page 2 completed 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.

Foreign ownership interest – All direct and indirect lines of
ownership held by a foreign person in a given U.S. business
enterprise must be summed to determine if the enterprise is a U.S.
affiliate of the foreign person for purposes of reporting.
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.

Foreign person A

↓

No – You are not required to file a Form BE-12(LF).
File Form BE-12 Mini by May 31, 2008.
f. Was the U.S. affiliate majority-owned by its foreign
parents at the end of its 2007 fiscal year? (A U.S.
affiliate is "majority owned" if the combined direct
and indirect ownership interests of all foreign
parents of the U.S. affiliate exceed 50 percent.)
Yes – Continue with question g.
No – File Form BE-12(SF) by May 31, 2008.

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

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

No – File Form BE-12(SF) by May 31, 2008.

↓

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

↓

25%
U.S. affiliate D
100% x 50% x 25% = 12.5%
indirectly owned by foreign person A
NOTE: Arrows connecting boxes represent direction of ownership

BE-12(LF) (REV. 12/2007)

Yes – Continue with question f.

g. 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 2007 fiscal year?

Calculation of Foreign Ownership
Foreign
U.S.

e. Did any one of the items – Total assets, Sales or gross
operating revenues, or Net income (loss) – for the U.S.
affiliate (not just the foreign parent’s share) exceed $40
million at the end of, or for, its 2007 fiscal year?

Page 27

I. REPORTING REQUIREMENTS – Continued

c. On a fully consolidated, or, in the case of real estate
investments, an aggregated basis, any one of the
following three items – Total assets (do not net out
liabilities), or Sales or gross operating revenues,
excluding sales taxes, or Net income after provision for
U.S. income taxes – for the U.S. affiliate (not just the
foreign parent’s share) exceeded $175 million (positive or
negative) at the end of, or for, its fiscal year that ended in
calendar year 2007.

Which Form to File?
At least 10 percent voting interest directly
and/or indirectly owned by a foreign person?
Yes

No

Bank or bank
holding company?

File the BE-12 Claim
for Not Filing

B. Aggregation of real estate investments – Aggregate all
real estate investments of a foreign person for the purpose of
applying the reporting criteria. Use a single report form to
report the aggregate holdings, unless BEA has granted
permission to do otherwise. Those holdings not aggregated
must be reported separately. Real estate is discussed more
fully in instruction V.C. starting on page 32.

No

II. DEFINITIONS

Yes

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.

More than 50 percent of the voting
rights owned by another U.S.
affiliate at end of the fiscal year
that ended in calendar year 2007?

File Form BE-12 Bank

Yes

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.

No

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).

Do different foreign persons hold a direct and
indirect ownership interest in the U.S. affiliate
(exception d to the consolidation rules found in
instruction IV.2. on page 29)?

Yes

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:

No

1. Members of the same family.
2. A business enterprise and one or more of its officers or
directors.

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.

3. Members of a syndicate or joint venture.
4. A corporation and its domestic subsidiaries.
E. Foreign person means any person resident outside the United
States or subject to the jurisdiction of a country other than the
United States.
F. Direct investment means the ownership or control, directly or
indirectly, by one person of 10 percent or more of the voting
securities of an incorporated business enterprise or an
equivalent interest in an unincorporated business enterprise.

Assets, sales, or net income (loss)
greater than $40 million?

Yes

No

Majority-owned directly
and/or indirectly by
foreign parents?

File Form BE-12 Mini

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.

Yes

No

Assets, sales, or net
income (loss) greater
than $175 million?

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.

File Form
BE-12(SF)

Yes

Branch means the operations or activities conducted by a
person in a different location in its own name rather than
through an incorporated entity.

K. U.S. affiliate means an affiliate located in the United States
in which a foreign person has a direct investment.

No

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.
File Form
BE-12(LF).

File Form
BE-12(SF).

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.

2. Who must file Form BE-12(LF) – 2007 Benchmark Survey of
Foreign Direct Investment in the United States – (Long Form)?
A Form BE-12(LF) must be completed and filed by May 31, 2008, by
each U.S. business enterprise that was a U.S. affiliate of a foreign
person at the end of its fiscal year that ended in calendar year 2007, if:
a. It is not a bank, and
b. The ownership or control (both direct and indirect) by all
foreign parents in the voting securities of an incorporated
U.S. business enterprise (or an equivalent interest of an
unincorporated U.S. business enterprise) at the end of the fiscal
year that ended in calendar year 2007, exceeded 50 percent
(i.e., the voting securities, or equivalent interest were majority
owned by foreign parents), and

BE-12(LF) (REV. 12/2007)

L. Foreign parent means the foreign person, or the first person
outside the United States in a foreign chain of ownership, which
has direct investment in a U.S. business enterprise, including a
branch.
M. U.S. corporation means a business enterprise incorporated in
the United States.
N. Intermediary means any agent, nominee, manager, custodian,
trust, or any person acting in a similar capacity.
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.

Page 28

II. DEFINITIONS – Continued

a. DO NOT CONSOLIDATE FOREIGN SUBSIDIARIES,
BRANCHES, OPERATIONS, OR INVESTMENTS NO MATTER
WHAT THE PERCENTAGE OWNERSHIP.

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.

Include foreign holdings owned 20 percent or more (including
those that are majority-owned) using the equity method of
accounting. Do not report employment, land, and other property,
plant and equipment and DO NOT eliminate intercompany
accounts for holdings reported using the equity method.
DO NOT list any foreign holdings on the Supplement B.

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.

Oil and gas sites owned by U.S. affiliates and located outside of
U.S. claimed territorial waters are to be treated as foreign
subsidiaries of the U.S. affiliates if they meet one of the following
criteria: (1) they are incorporated in a foreign country; (2) they are
set up as a branch; or (3) they have a physical presence in a
foreign country as evidenced by property, plant and equipment or
employees located in that country.

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.

Real estate located outside the United States that is owned by the
U.S. affiliate and generates revenues for, or reimbursements to, the
U.S. affiliate, or that facilitates the foreign operations of the U.S.
affiliate is a foreign subsidiary and should not be consolidated on
this BE-12 report.

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.
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(LF) require data that may
not normally be maintained in a company’s customary
accounting records. Precise answers for these items may
present the respondent with a substantial burden beyond
what is intended by BEA. This may be especially true for:

b. Do not consolidate banking activities. If the nonbank U.S.
affiliate reporting on the Form BE-12(LF) has a direct or indirect
ownership interest in a U.S. bank, bank holding company (BHC),
or any other banking activity, such as a U.S. wholesale or
limited purpose bank, DO NOT consolidate those banking
activities into the Form BE-12(LF). Banks are required to file a
separate BE-12 Bank report. List unconsolidated banking
affiliates on the Supplement B of the BE-12(LF).
Include on Form BE-12(LF) any banking operations owned 20
percent or more (including those that are majority-owned) using
the equity method of accounting. Do not report employment, land,
and other property, plant, and equipment and DO NOT eliminate
intercompany accounts for banking operations reported using the
equity method.
For BE-12 reporting purposes, treat Financial Holding Companies in
the same manner as you would treat a BHC.
c. Special consolidation rules apply to U.S. affiliates that are
limited partnerships or that have an ownership interest in
a U.S. limited partnership. These rules can be found on our
web site at www.bea.gov/ltdpartner12. Also see instruction 6.b.
on page 30 for additional information about partnerships.

• Part I, Items 24 thru 34 – Number of employees in each
industry of sales;

d. 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 BE-12 report. (See diagram below.)

• Part II, Section D – Distribution of sales or gross operating
revenues, by whether the sales were goods, investment
income, or services, and the distribution of sales of services
by transactor;
• Part II, Section K – Exports and imports of goods by U.S.
affiliate on a shipped basis, and

Foreign person B

• Part II, Section L – Data disaggregated by State.

Foreign
U.S.

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.
D. Specify – When "specify" is stated for certain items, provide the
type and dollar amount of the major items included in the data
provided.
E. Space on form insufficient – When space on a form is insufficient
to permit a full answer to any item, provide the required information
on supplementary sheets, appropriately labeled and referenced to
the item number on the form.

PART I - IDENTIFICATION OF U.S. AFFILIATE
2. Consolidation Rules
Consolidated reporting by the U.S. affiliate – A U.S. affiliate
must file on a fully consolidated domestic U.S. basis, including in
the full consolidation all nonbank U.S. business enterprises in
which it directly or indirectly owns more than 50 percent of the
outstanding voting interest. The fully consolidated entity is
considered one U.S. affiliate.

100%
30%

U.S. affiliate X
60%
U.S. affiliate Y

U.S. affiliate Y may not be fully consolidated into U.S. affiliate X
because of the 30 percent direct ownership by foreign person B.
NOTE: Arrows connecting boxes represent direction of ownership

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 2 to 26 of this form.

If this exception applies, reflect the indirect ownership interest,
even if more than 50 percent, on the balance sheet and income
statement of the owning U.S. affiliate’s BE-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.
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 foreign person holding real estate investments that are reportable
on the BE-12 must aggregate all such holdings. See Instruction I.B.
on page 28 and V.C. starting on page 32 for details.
Do not prepare your BE-12 report using the proportionate
consolidation method. Except as noted in b. through d. below,
consolidate all majority-owned U.S. affiliates into your BE-12 report.
Unless the exceptions discussed below apply, any deviation
from these consolidation 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
file deconsolidated reports, you must file the same type of reports
(i.e., BE-12(LF), BE-12(SF), or BE-12 Mini) that would have been
required if a consolidated report was filed. Report majority-owned
subsidiaries, if not consolidated, on Form BE-12(LF), 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 not consolidated must file its own Form BE-12(LF),
BE-12(SF), BE-12 Mini, or BE-12 Bank.

BE-12(LF) (REV. 12/2007)

Foreign person A

Page 29

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
(1) New fiscal year ends in calendar year 2007 – A U.S.
affiliate that changed the ending date of its financial
reporting year should file a 2007 BE-12 report that
covers the 12 month period prior to the new fiscal
year end date. The following example illustrates the
reporting requirements.
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 should file a 2007 BE-12 report
covering the 12 month period from April 1, 2006 to
March 31, 2007.

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

Managing partners – If one general partner is
designated as the managing partner, responsible for
the day-to-day operations of the partnership, this does
not necessarily transfer control of the partnership to
the managing partner. If the managing partner must
obtain approval for annual operating budgets and for
decisions relating to significant management issues
from the other general partners, then the managing
partner does not have a 100 percent voting interest in
the partnership.

The ending balance sheet amounts reported in column (1) of
items 42 through 58 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 70. To reconcile the beginning and
ending net property, plant and equipment balances, affiliate A
must include an adjusting entry in item 95.

(2) Limited Partnerships
(a) Determination of voting interest – "Voting
interest" is defined in instructions 12-16 below. The
determination of the percentage of voting interest
in a limited partnership is based on who controls
the partnership. The percentage of voting interest is
NOT based on the percentage of ownership in the
partnership’s equity. In most cases, the general
partner is presumed to control a limited
partnership, and therefore, have a 100 percent
voting interest in the limited partnership. If there is
more than one general partner, the partnership is
presumed to be controlled equally by each of the
general partners, unless a clause to the contrary is
contained in the partnership agreement. For
example, if a limited partnership has two general
partners, and nothing to the contrary is stated in
the partnership agreement, then each general
partner is presumed to have a 50 percent voting
interest in the limited partnership.

(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 year 2007, the affiliate should file a
2007 BE-15 report that covers 12 months. 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
should file a 2007 BE-12 report 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 42 through 58 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 70. To reconcile the
beginning and ending net property, plant and equipment
balances, affiliate B must include an adjusting entry in
item 95.

Limited partners do not normally exercise any control
over a limited partnership. Therefore, unless a clause
to the contrary is contained in the partnership
agreement, limited partners are presumed to have
zero voting interest in a limited partnership. If a
limited partnership has one or more limited partners
who are foreign persons, the foreign limited partners
are presumed to have no voting interest, and,
therefore, no direct investment in the limited
partnership.

For 2008, assuming no further changes in the fiscal year
end date occur, affiliate B should file a BE-12 report
covering the 12 month period from April 1, 2007 to
March 31, 2008.

Managing partners – See discussion under "General
Partnerships" above.
(b) Consolidation Rules
Special consolidation rules apply to U.S.
affiliates that are limited partnerships or that
have an ownership interest in a U.S. limited
partnership. These rules can be found on our web
site at: www.bea.gov/ltdpartner12

5. Reporting for a U.S. business that became a U.S. affiliate
during fiscal year 2007 –
a. A U.S. business enterprise that was newly established in
fiscal year 2007 should file a report for the period starting
with the establishment date up to and ending on the last day of
its fiscal year that ended in calendar year 2007. DO NOT
estimate amounts for a full year of operations if the first fiscal
year is less than 12 months.

c. Limited Liability Companies (LLCs)
Determination of voting interest – "Voting interest" is
defined in instruction 12-16 below. The determination of the
percentage of voting interest in an LLC is based on who
controls the LLC. The percentage of voting interest is NOT
based on the percentage of ownership in the LLC’s equity.
LLCs are presumed to be controlled equally by each of its
members (owners), unless a clause to the contrary is
contained in the articles of organization or in the operating
agreement. For example, if an LLC has two members, and
nothing to the contrary is contained in the articles of
organization or in the operating agreement, then each
member is presumed to have a 50 percent voting interest in
the LLC; if there are three members, then each member is
presumed to have a one-third voting interest in the LLC.

b. A U.S. business enterprise existing before fiscal year
2007 that became a U.S. affiliate in fiscal year 2007
should file a report covering a full 12 months of operations.
6. Form of organization of U.S. affiliate – Reporting by
unincorporated U.S. affiliates
a. Directly owned vs. indirectly owned
(1) DIRECTLY OWNED – Each unincorporated U.S. affiliate,
including a branch, that is directly owned 10 percent or
more by a foreign person should file a separate BE-12
report. Do not combine two or more directly owned U.S.
affiliates on a single BE-12 report. The only exception is for
U.S. affiliates that are real estate investments. See
instruction I.B. on page 28 and V.C. starting on page 32 for
details on real estate.
(2) INDIRECTLY OWNED – Except as noted in the exceptions
to the consolidation rules on page 29, an indirectly owned
unincorporated U.S. affiliate that is owned more than 50
percent (voting interest) by another U.S. affiliate should be
fully consolidated on the report with the U.S. affiliate that
holds the voting interest greater than 50 percent. An
indirectly owned unincorporated U.S. affiliate owned 50
percent (voting interest) or less by another U.S. affiliate
should file a separate BE-12 report if no other U.S. affiliate
owns a voting interest of more than 50 percent.
b. Partnerships – Most partnerships are either general or
limited partnerships. A general partnership usually consists
of at least two general partners who together control the
partnership. A limited partnership usually consists of at least
one general partner and one limited partner. The general
partner usually controls a limited partnership. The limited
partner has a financial interest but does not usually have any
voting rights (control) in a limited partnership.
Partners without voting rights (control) cannot have direct
investment in a partnership. Therefore, limited partners do not
usually have direct investment. The existence of direct
investment in a partnership is determined by the percentage of
control exercised by the partner(s). The percentage of control
exercised by a partner may differ from its financial interest in
the partnership.
(1) General Partnerships
Determination of voting interest – "Voting interest" is
defined in instructions 12-16 below. The determination of
the percentage of voting interest of a general partner is
based on who controls the partnership. The percentage of
voting interest is not based on the percentage of ownership
in the partnership’s equity. The general partners are
presumed to control a general partnership. Unless a clause
to the contrary is contained in the partnership agreement, a
general partnership is presumed to be controlled equally by
each of the general partners. For example, if a partnership
has two general partners, and nothing to the contrary is
stated in the partnership agreement, each general partner is
presumed to have a 50 percent voting interest. If there are
three general partners, each general partner is presumed to
have a one-third voting interest, etc.

BE-12(LF) (REV. 12/2007)

Managing member – If one member is designated as the
managing member responsible for the day-to-day operations
of the LLC, this does not necessarily transfer control of the
LLC to the managing member. If the managing member must
obtain approval for annual operating budgets and for
decisions relating to other significant management issues
from the other members, then the managing member does
not have a 100 percent voting interest in the LLC.
8. U.S. affiliates NOT fully consolidated – Report investments in
U.S. business enterprises that are not fully consolidated and
owned 20 percent or more (including those that are majority
owned) using the equity method of accounting. Do not report
employment, land, and other property, plant, and equipment and
DO NOT eliminate inter-company accounts for holdings reported
using the equity method.
You may report immaterial investments using the cost method
of accounting if this treatment is consistent with your normal
reporting practice. Report investments owned less than 20
percent in accordance with FAS 115 (Accounting for Certain
Investments in Debt and Equity Securities) or the cost basis of
accounting.
List all U.S. affiliates in which this U.S. affiliate has a voting
interest of at least 10 percent and that are not consolidated in
this Form BE-12(LF) on the Supplement B.
12–16 – Ownership – 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. See
instructions 6.b.(1) and 6.b.(2)(a) above for information about
determining the voting interest for partnerships. See instruction
6.c. above for information about determining the voting interest
for Limited Liability Companies.
b. Equity interest is the percent of ownership in the total equity
(voting and nonvoting) of the U.S. affiliate. Nonvoting equity
consists of ownership interests that do not have a say in the
management of the company. An example of nonvoting equity
is preferred stock that has no voting rights.

Page 30

• Books. NOTE: Book publishers – To the extent feasible,
report as sales of services all revenues associated with the
design, editing, and marketing activities necessary for
producing and distributing books that you both publish and
sell. If you cannot unbundle (i.e., separate) these revenues
from the value of the books you sell, then report your total
sales as sales of goods or services based on the activity
that accounts for a majority of the value.

IV. INSTRUCTIONS FOR SPECIFIC SECTIONS OF
THE REPORT FORM – Continued
Voting interest and equity interest are not always equal.
For example, an owner can have a 100 percent voting interest in
a U.S. affiliate but own less than 100 percent of the affiliate’s
total equity. This situation is illustrated in the following example.
Example: U.S. affiliate A has two classes of stock, common and
preferred. There are 50 shares of common stock outstanding.
Each common share is entitled to one vote and has an ownership
interest in 1 percent of the total owners’ equity amount. There
are 50 shares of preferred stock outstanding. Each preferred
share has an ownership interest in 1 percent of the total owners’
equity amount but has no voting rights. Foreign parent B owns
all 50 shares of the common stock. U.S. investors own all 50
shares of the preferred stock. Since foreign parent B owns all of
the voting stock, foreign parent B has a 100 percent voting
interest in U.S. affiliate A. However, since all 50 of the nonvoting
preferred shares are owned by U.S. investors, foreign parent B
has only a 50 percent equity interest in the owners’ equity
amount of U.S. affiliate A.

• Energy trading activities where you take title to the goods.
NOTE: If you act in the capacity of a broker or agent to
facilitate the sale of goods and you do not take title to the
goods, report your revenue (i.e., commissions) as sales of
services in item 79.
• Magazines and periodicals sold in retail stores. NOTE:
Report subscription sales as sales of services in item 79.
• Packaged general use computer software.
• Structures sold by businesses in real estate.
• Revenues earned from building structures by businesses in
construction.
• Electricity, Natural gas, and Water. NOTE: Revenues derived
from transmitting and/or distributing these goods, as
opposed to revenues derived from the sale of the actual
product, should, to the extent feasible, be reported as sales
of services in item 79.

24–37
Industry classification of fully consolidated U.S. affiliate
Book Publishers and Printers – Printing books without publishing
is classified in International Surveys Industry (ISI) code 3231
(printing and related support activities) not ISI code 5111
(newspaper, periodical, book, and directory publishers).

78. 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 79.

Real Estate Investment Trusts (REITS) – Report hybrid or
mortgage REITS in ISI code 5252 (funds, trusts, and other financial
vehicles). Report all other REITS in ISI code 5310 (Real estate).

79. Sales of services – Services are normally outputs that are
intangible. Report as sales of services:

38. Number of employees covered by collective
bargaining agreements — Employees are covered by
collective bargaining agreements if:

• Advertising revenue.

a. They are represented by a labor organization which is
recognized as their bargaining agent,

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

b. Their wages are determined by collective bargaining, and

• 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.

c. Settlements are embodied in signed, mutually binding
collective bargaining agreements.
Thus, include employees covered by national unions, plant
unions, or any other organization meeting these criteria.

• 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.

A reasonable estimate is acceptable. If necessary, to facilitate
estimation, you may consider all employees of a given
establishment, plant, location, unit, etc., to be covered by
collective bargaining agreements if a majority of those
employees meet the three criteria above.

• Magazines and periodicals sold through subscriptions.
NOTE: Report magazines and periodicals sold through retail
stores, as sales of goods in item 77.

PART II – FINANCIAL AND OPERATING DATA OF U.S. AFFILIATE
Section B – INCOME STATEMENT

• Newspapers.

61. Certain realized and unrealized gains (losses) –

• Pipeline transportation.

Special instructions for (1) dealers in financial
instruments, finance and insurance companies,
and (2) real estate companies.
(1) Dealers in financial instruments (including securities,
currencies, derivatives, and other financial
instruments) and finance and insurance
companies – Include in item 61:
(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.

• Software downloaded from the Internet, electronic mail, an
Extranet, Electronic Data Interchange network, or some
other online system.
• Computer systems design and related services.
• Negotiated licensing fees for software to be used on networks.
• Electricity transmission and distribution, Natural gas
distribution, and Water distribution.
Section E – TOTAL EMPLOYEE COMPENSATION
84–86

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 56b
and 56c (total accumulated other comprehensive income
(loss)).
EXCLUDE income from explicit fees and commissions from
item 61. Include income from these fees and commissions as
part of your income from operations reported on page 5.

84. Wages and salaries are the gross earnings of all employees
before deduction of employees’ payroll withholding taxes,
social insurance contributions, group insurance premiums,
union dues, etc. Include time and piece rate payments, cost of
living adjustments, overtime pay and shift differentials,
bonuses, profit sharing amounts, and commissions. Exclude
commissions paid to persons who are not employees.
Wages and salaries include direct payments by employers for
vacations, sick leave, severance (redundancy) pay, etc. Include
employer contributions to benefit funds. Exclude payments made
by, or on behalf of, benefit funds rather than by the employer.

(2) Real estate companies – Include in item 61:
(a) impairment losses, as defined by FAS 144, and

Wages and salaries include in-kind payments, valued at their
cost, that are clearly and primarily of benefit to the
employees as consumers. Exclude expenditures that benefit
employers as well as employees, such as expenditures for plant
facilities, employee training programs, and reimbursement for
business expenses.

(b) 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 item 37 column 2, and
items 59 and 76, and as sales of goods in item 77. Such
expenses, including the net book value of the real estate
sold, should be reported as costs of goods sold in item 64.
Do not net the expenses against the revenues.
Section D – DISTRIBUTION OF SALES OR GROSS
OPERATING REVENUES
76–83
Disaggregate the total sales or gross operating revenues into
sales of goods, investment income, and sales of services.
77. Sales of goods – Goods are normally outputs that are
tangible. Report as sales of goods:

85. Employee benefit plans are employer expenditures for all
employee benefit plans, including those required by
government statute, those resulting from a collectivebargaining 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.

• Mass produced media, including exposed film, video tapes,
DVD’s, audio tapes, and CD’s.

BE-12(LF) (REV. 12/2007)

Page 31

V. SPECIAL INSTRUCTIONS

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

A. Insurance companies – Reporting should be in accordance with
U.S. Generally Accepted Accounting Principles not Statutory
Accounting Practices (SAP). For example, the BE-12 report should
include the following assets even though they are not acceptable
under SAP: 1. nontrusteed or free account assets, and 2.
nonadmitted assets such as furniture and equipment, agents’ debit
balances, and all receivables deemed to be collectible.

Section F – EMPLOYEES AND EMPLOYEE COMPENSATION
BY STANDARD OCCUPATION CLASSIFICATION
(SOC) GROUPS
87–89
Standard Occupation Classification (SOC) Groups – The major
SOC groups are as follows:

Item on Form BE-12(LF):
37

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

43a. CURRENT RECEIVABLES – Include current items such as
agents’ balances, uncollected premiums, amounts
recoverable from reinsurers, and other current notes and
accounts receivable (gross of allowances for doubtful
items) arising from the ordinary course of business.
50

CURRENT LIABILITIES AND LONG-TERM DEBT –
Include current items such as loss liabilities, policy claims,
commissions due, other current liabilities arising from the
ordinary course of business, and long-term debt. Include
policy reserves in "Other non-current liabilities," item 51,
unless they are clearly current liabilities. Exclude
mandatory securities valuation reserves that are
appropriations of retained earnings. Include them in the
owners’ equity section of the balance sheet.

61

CERTAIN REALIZED AND UNREALIZED GAINS
(LOSSES) – See special instructions for item 61 on
page 31 of this form.

64

COST OF GOODS SOLD OR SERVICES RENDERED,
AND SELLING, GENERAL, AND ADMINISTRATIVE
EXPENSES – Include costs relating to sales or gross
operating revenues, item 59, such as policy losses incurred,
death benefits, matured endowments, other policy benefits,
increases in liabilities for future policy benefits, other
underwriting expenses, and investment expenses.

78

INVESTMENT INCOME – Report that portion of sales or
gross operating revenues, items 37 column (2), 59 and
76, that is investment income (e.g., interest and
dividends). However, report gains and (losses) on
investments in accordance with the special instructions
for item 61 on page 31 of this form.

79

SALES OF SERVICES – Include premium income and
income from actuarial, claims adjustment, and other
services, if any.

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
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.
Section J – TECHNOLOGY
109–116
Research and development (R&D) definition – R&D includes
basic and applied research in the sciences and engineering. It also
includes design and development of new products and processes,
and enhancement of existing products and processes.

B. Railroad transportation companies – Railroad transportation
companies should include only the net annual balances for
interline settlement items (car hire, car repair, freight revenues,
switching revenues, and loss and damage settlements) in items
43a, 48, and 50.

R&D includes activities carried on by persons trained, either formally
or by experience, in engineering, the physical sciences such as
chemistry and physics, the biological sciences such as medicine, the
mathematical and statistical sciences, and computer science. R&D
includes these activities if the purpose is to do one or more of the
following:
a. The planned systematic pursuit of new knowledge or understanding
toward general application (basic research);

C. Real Estate – The ownership of real estate is defined to be
a business enterprise, and if the real estate is foreign
owned, it is a U.S. affiliate of a foreign person. A BE-12
report is required unless the enterprise is otherwise exempt.

b. The acquisition of knowledge or understanding to meet a specific,
recognized need (applied research); and
c. The application of knowledge or understanding toward the
production or improvement of a product, service, process, or
method (development).
Basic research is the pursuit of new scientific knowledge or
understanding that does not have specific immediate commercial
objectives, although it may be in fields of present or potential
commercial interest.

Residential real estate held exclusively for personal use and not for
profit making purposes is not subject to the reporting requirements.
A residence that is an owner’s primary residence that is then leased
by the owner while outside the United States, but which the owner
intends to reoccupy, is considered real estate held for personal use
and therefore not subject to the reporting requirements. Ownership
of U.S. residential real estate by a corporation whose sole purpose is
to hold the real estate for the personal use of the owner(s) of the
corporation is considered to be real estate held for personal use and
therefore not subject to the reporting requirements.
Aggregation of real estate investments – A foreign person
holding real estate investments that are reportable on the BE-12
must aggregate all such holdings for the purpose of applying the
reporting criteria (see instruction I.B. on page 28 of this form). File
a single BE-12 report covering the aggregated holdings. If on an
aggregated basis any one of the following three items – total
assets (do not net out liabilities), or sales or gross operating
revenues, excluding sales taxes, or net income after provision for
U.S. income taxes – exceeds $175 million (positive or negative), file
Form BE-12(LF). If permission has been received in writing from
BEA to file on an nonaggregated basis, you must report each real
estate investment on a Form BE-12(LF) if a Form BE-12(LF) would
have been required on an aggregated basis. Nonaggregated
reports should be filed as a group and you should inform BEA that
they are all for one owner.

Applied research applies the findings of basic research or other
existing knowledge toward discovering new scientific knowledge that
has specific commercial objectives with respect to new products,
services, processes, or methods.
Development is the systematic use of the knowledge or
understanding gained from research or practical experience directed
toward the production or significant improvement of useful products,
services, processes, or methods, including the design and
development of prototypes, materials, devices, and systems.
R&D includes the activities described above whether assigned to
separate R&D organizational units of the company or carried out by
company laboratories and technical groups not a part of a separate
R&D organization.

On page 1, name and address of U.S. business enterprise, BEA is
not seeking a legal description of the property, nor necessarily the
address of the property itself. Because there may be no operating
business enterprise for a real estate investment, what BEA seeks is
a consistently identifiable name for the investment (i.e., the U.S.
affiliate) together with an address to which report forms can be
mailed so that the investment (affiliate) can be reported on a
consistent basis for each reporting period and for the various BEA
surveys.

Research and development expenditures – INCLUDE all costs
incurred to support R&D. INCLUDE wages, salaries, and related
costs; materials and supplies consumed; depreciation on R&D
property and equipment, cost of computer software used in R&D
activities; utilities, such as telephone, telex, electricity, water, and
gas; travel costs and professional dues; property taxes and other
taxes (except income taxes) incurred on account of the R&D
organization or the facilities they use; insurance expenses;
maintenance and repair, including maintenance of buildings and
grounds; company overhead including: personnel, accounting,
procurement and inventory, and salaries of research executives not
on the payroll of the R&D organization. EXCLUDE capital
expenditures, expenditures for tests and evaluations once a
prototype becomes a production model, patent expenses, and
income taxes and interest.

Thus, on page 1 of the BE-12 survey forms the "name and address"
of the U.S. affiliate might be:
XYZ Corp. N.V., Real Estate Investments
c/o B&K Inc., Accountants
120 Major Street
Miami, FL XXXXX

EXCLUDE expenditures for quality control; routine product testing;
market research; sales promotion, sales service, and other nontechnological activities; routine technical services; research in the social
sciences or psychology; geological and geophysical exploration
activities, and advertising programs to promote or demonstrate new
products or processes.

BE-12(LF) (REV. 12/2007)

SALES OR GROSS OPERATING REVENUES,
EXCLUDING SALES TAXES – Include items such
as earned premiums, annuity considerations, gross
interest and dividend income, and items of a similar
nature. Exclude income from unconsolidated affiliates
that is to be reported in item 60, and certain gains or
losses that are to be reported in item 61.

Page 32

If the investment property has a name, such as Sunrise
Apartments, the name and address on page 1 of the BE-12
survey forms might be:
Sunrise Apartments
c/o ABC Real Estate
120 Major Street
Miami, FL XXXXX

V. SPECIAL INSTRUCTIONS – Continued

2. If a foreign beneficial owner holds a U.S. affiliate through a
foreign intermediary, the U.S. affiliate may report the
intermediary as its foreign parent but, when requested, must
also identify and furnish information concerning the foreign
beneficial owner. Accounts or transactions of the U.S. affiliate
with the foreign intermediary are considered as accounts or
transactions of the U.S. affiliate with the foreign beneficial
owner.

There are questions throughout the Form BE-15(LF) that may not
apply to certain types of real estate investments, such as the
employer identification number, the number of employees, and
exports and imports. In such cases, mark the items "none."
Joint ventures and partnerships – If a foreign person has a
direct or indirect voting ownership interest of 10 percent or
more in a joint venture, partnership, etc., that is formed to own
and hold, develop, or operate real estate, the joint venture,
partnership, etc., in its entirety, not just the foreign person’s
share, is a U.S. affiliate and must be reported as follows:

F. Determining place of residence and country of jurisdiction
of individuals – An individual is considered a resident of, and
subject to the jurisdiction of, the country in which he or she is
physically located. The following guidelines apply to individuals
who do not reside in their country of citizenship:

1. If the foreign interest in the U.S. affiliate is directly held by
the foreign person, then a BE-12 report must be filed by
the U.S. affiliate (subject to the exemption criteria and
aggregation rules discussed above).

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.

2. If a voting interest of more than 50 percent in the U.S. affiliate
is owned by another U.S. affiliate, the owned affiliate must be
fully consolidated in the BE-12 report of the owning affiliate.

2. Individuals who reside, or expect to reside, outside their
country of citizenship for one year or more are considered
to be residents of the country in which they are residing,
except as provided in paragraphs 3 and 4 below.

3. If a voting interest of 50 percent or less in the U.S. affiliate is
owned by another U.S. affiliate, and no U.S. affiliate owns a
voting interest of more than 50 percent, then a separate
BE-12 report must be filed by the owned affiliate. The BE-12
report(s) of the owning affiliate(s) must show an equity
investment in the owned affiliate.

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 the
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.

D. Farms – For farms that are not operated by their foreign
owners, the income statements and related items should be
prepared based on the extent to which the income from the
farm accrues to, and the expenses of the farm are borne by, the
owner. Generally this means that income, expenses, and gain
(loss) assignable to the owner should reflect the extent to
which the risk of the operation falls on the owner. For example,
even though the operator and other workers on the farm are
hired by a management firm, if their wages and salaries are
assigned to, and borne by, the farm operation being reported,
then the operator and other workers should be reported as
employees of that farm operation and the wages and salaries
should be included as an expense in the income statement.

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.
VI. FILING THE BE-12
A. Due date – File a fully completed and certified Form BE-12(LF),
BE-12(SF), BE-12 Mini, or BE-12 Bank no later than May 31, 2008.
If the U.S. affiliate is exempt from filing Form BE-12(LF),
BE-12(SF), BE-12 Mini, or BE-12 Bank, complete and file the
BE-12 Claim For Not Filing by May 31, 2008.

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

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 go to:
www.bea.gov/fdi

2. If the farm is operated by a management firm that oversees
the operation of the farm and hires an operator, but the
operating income and expenses are assigned to the owner,
the income and expenses so assigned should be shown in the
requested detail in the income statement, and related items,
as appropriate. (The report should not show just one item,
i.e., the net of income less the management fee, where the
management fee includes all expenses.)
E. Estates, trusts, and intermediaries
A FOREIGN ESTATE is a person and therefore may have direct
investment, and the estate, not the beneficiary, is considered to
be the owner.
A TRUST is a person but it is not a business enterprise. The trust
is considered to be the same as an intermediary, and should report
as outlined in the instructions for intermediaries below. For
reporting purposes, the beneficiary(ies) of the trust, is (are)
considered to be the owner(s) for purposes of determining the
existence of direct investment, except in two cases: (1) if there is,
or may be, a reversionary interest, and (2) if a corporation or other
organization creates a trust designating its shareholders or
members as beneficiaries. In these two cases, the creator(s) of the
trust is (are) deemed to be the owner(s) of the investments of the
trust (or succeeding trusts where the presently existing trust had
evolved out of a prior trust), for the purposes of determining the
existence and reporting of direct investment.
This procedure is adopted in order to fulfill the statistical
purposes of this survey and does not imply that control over an
enterprise owned or controlled by a trust is, or can be, exercised
by the beneficiary(ies) or creator(s).
FOR AN INTERMEDIARY:
1. If a U.S. intermediary holds, exercises, administers, or
manages a particular foreign direct investment in the United
States for the beneficial owner, such intermediary is
responsible for reporting the required information for, and
in the name of, the U.S. affiliate. Alternatively, the U.S.
intermediary can instruct the U.S. affiliate to submit the
required information. Upon so doing, the intermediary is
released from further liability to report, provided it has
informed BEA of the date such instructions were given and
provides BEA the name and address of the U.S. affiliate, and
has supplied the U.S. affiliate with any information in the
possession of, or which can be secured by, the intermediary
that is necessary to permit the U.S. affiliate to complete the
required reports. When acting in the capacity of an
intermediary, the accounts or transactions of the U.S.
intermediary with a foreign beneficial owner are considered
as accounts or transactions of the U.S. affiliate with the
foreign beneficial owner. To the extent such transactions or
accounts are unavailable to the U.S. affiliate, BEA may
require the intermediary to report them.

BE-12(LF) (REV. 12/2007)

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 due date of the report.
D. Assistance – For assistance, telephone (202) 606-5577, FAX
(202) 606-5319, or send email 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 27.

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