2015 BE-11 Supporting Statement Part B 08192015

Supporting Statement for the

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

OMB Control Number 0608-0053

B. Collections of Information Employing Statistical Methods

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

The potential universe for the BE-11 annual survey consists of all U.S. persons (in the broad legal sense, including companies) that own 10 percent or more of the voting securities of an incorporated foreign business enterprise, or an equivalent interest in an unincorporated foreign business enterprise.

Sample selection for the U.S. parents and foreign affiliates reported in the annual survey is based primarily on the size of the foreign affiliates. The size thresholds are stated in terms of total assets, sales or gross operating revenues, and net income after income taxes, whether positive or negative. If any one of the three items exceeds the size threshold, then a report must be filed.

The BE-11 annual survey has multiple survey forms. See Section A.12. for the filing requirements by form. Estimates of the sample size and response rates below are based on recent BE-11 surveys.

_{BE-11 Universe, Sample, and Response Rate}

	Number of entities	Percent of entities	Percent of assets
Universe: U.S. parents Foreign affiliates Sample: BE-11A (U.S. parents) BE-11B/C/D (foreign affiliates): BE-11B BE-11C BE-11D Response rate: BE-11A BE-11B/C/D	3,900 54,000 1,900 21,800 20,500 1,150 150 --- ---	100 100 49 40 38 2 0 93 93	100 100 95 98 --- --- --- 91 90

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

Sample selection criteria are explained in B.1. above. Data for the nonsample portion of the universe as well as for delinquent respondents will be statistically estimated and added to the data of the reported sample entities to provide universe estimates. The estimates are derived by extrapolating forward data collected in previous annual or benchmark surveys based on changes in data collected for a matched sample of U.S. parents or foreign affiliates.

In this information collection, more detailed data are collected for larger U.S. parents and foreign affiliates than for smaller ones. BEA estimates data for the smaller U.S. parents and foreign affiliates using statistical methods so that the level of detail is the same regardless of firm size.

In general, the estimation is based on relationships among data items for a panel of larger U.S. parents and foreign affiliates with similar industry and (for foreign affiliates) host country characteristics.

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

Several steps will be taken to maximize response rates. First, BEA will provide respondents with advance notice of the survey by mail. The announcement will ask respondents to verify their mailing address and status as a reporter. It will also alert them to the availability of electronic filing.

In March of each year, all companies that have not yet filed using the early filing option in eFile will receive notification by mail of their obligation to file the BE-11 survey together with a list of foreign affiliates for which data are required. BEA encourages respondents to file electronically but will mail paper forms to those respondents that request them and post PDF forms online that can be downloaded and filed by mail or fax. Any person specifically contacted by BEA must respond by filing either the completed survey or a valid Claim for Exemption. Nonrespondents will be sent follow-up notices and, in the event of continued nonresponse, may be referred to the Office of the General Counsel for further action, including possible referral to the Justice Department.

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

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

No tests were conducted (aside from giving respondents the opportunity to comment on proposed changes, as described in A.8., above). The same or similar questions for all proposed changes were included in previous BE-11 surveys or other surveys such as the 2014 BE-10 benchmark survey.

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

The survey is designed and conducted within BEA by the Direct Investment Division (DID). For further information, contact Patricia Abaroa, Chief, DID, via email at [email protected], or by phone at 202-606-9591.

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