Expenditures for new foreign direct investment in the United States in 2014.

Anderson, Thomas W.

IN NOVEMBER 2015, the Bureau of Economic Analysis (BEA) released statistics on expenditures for new investment--which includes spending to acquire, establish, or expand U.S. businesses--that was initiated by foreign direct investors in 2014. In 2014, these expenditures totaled $241.3 billion.

Most of these expenditures were for acquisitions, which totaled $224.7 billion. Expenditures to establish new U.S. businesses totaled $13.8 billion, and expenditures to expand existing foreign-owned U.S. businesses totaled $2.8 billion.

Total planned expenditures, which consist of first-year expenditures for investments initiated in 2014 and planned future expenditures, totaled $263.9 billion. Total planned expenditures for establishments were $31.3 billion, and total planned expenditures for expansions were $7.8 billion. By definition, planned expenditures for acquisitions are the same as first-year expenditures for acquisitions, at $224.7 billion. (1)

The level of expenditures on acquisitions and establishments in 2014 was comparable with the levels in 2007 and 2008 but were lower than those in some earlier years, including 1999 and 2000 (chart 1). (2) The patterns in new foreign direct investment are similar to the patterns in global merger and acquisition activity.

Expenditures by industry

Total first-year expenditures in manufacturing were $139.1 billion and total planned expenditures were $148.4 billion, the largest totals among major industries (table 1). Within the manufacturing sector, first-year expenditures were largest in pharmaceuticals and medicines at $75.9 billion.

Expenditures were also notable in publishing industries, in mining, and in real estate. (3)

[ILLUSTRATION OMITTED]

Expenditures by country

By country of ultimate beneficial owner (UBO), the largest source of expenditures by country was Ireland, with 2014 expenditures of $42.5 billion, followed by Canada, Germany, and Japan (table 2). (4)

The largest source countries for new investment were usually countries that already have a large foreign direct investment presence in the United States. Of the eight largest countries by foreign direct investment position in the United States--Canada, France, Germany, Ireland, Japan, the Netherlands, Switzerland, and the United Kingdom--seven were also among the top eight source countries for new investment (chart 2). (5)

Expenditures by state

By state, the largest first-year expenditures ($48.9 billion) and total planned expenditures ($53.5 billion) were for U.S. businesses in California (table 3). In terms of expenditures by foreign direct investors, the four largest states--California, New York, Texas, and New Jersey--together received over half of all new investment. These four states accounted for 34 percent of total gross domestic product (GDP) in the United States in 2014.

In 2014, first-year expenditures for new investment were 1.4 percent of U.S. GDP. In five states--California, Delaware, New Jersey, New York, and Washington--expenditures in 2014 were greater than 2 percent of the state GDP (chart 3). Share of state GDP is a measure of the relative attractiveness of a state to foreign direct investors.

To avoid the disclosure of data on individual companies, BEA suppressed statistics on first-year expenditures for 13 states. For these states, first-year expenditures accounted for 1.6 percent of their combined state GDP.

Greenfield expenditures

In the November 2015 release of the new investment statistics, BEA for the first time presented statistics on expenditures to expand existing foreign-owned U.S. businesses. Combining expenditures on expansions with expenditures to establish new U.S. businesses provides a measure of greenfield investments. Greenfield investment expenditures totaled $16.6 billion in 2014. Total planned greenfield expenditures, which include both first-year expenditures and spending in other years, were $39.2 billion.

By U.S. industry, 2014 greenfield expenditures were largest in real estate, at $4.7 billion. In manufacturing, expenditures for 2014 greenfield investments were $2.8 billion. Manufacturing expenditures were largest in primary and fabricated metals and chemicals.

By country of UBO, the largest source of first-year greenfield expenditures was Canada at $4.0 billion. Including expenditures from other years, the largest source countries for greenfield expenditures were China and Japan. By state, California and Texas attracted the largest expenditures for greenfield investments: first-year expenditures of $3.2 billion for California and $2.7 billion for Texas, and total planned expenditures of $7.7 billion for each state.

Technical Note

The statistics on new investments by foreign direct investors are based on data reported in the survey of new foreign direct investment in the United States (BE-13) conducted by BEA. The survey covers U.S. business enterprises that were acquired, established, or expanded by foreign direct investors. (6)

In the survey, a U.S. business enterprise is categorized as "acquired" if a foreign entity acquired a 10 percent or more voting interest in an incorporated U.S. business enterprise or an equivalent interest of an unincorporated U.S. business enterprise, either directly or indirectly through an existing U.S. affiliate, and no foreign entity held at least 10 percent of the voting interest immediately before the acquisition. (A U.S. affiliate is a foreign-owned U.S. business enterprise.) Acquisitions include the acquisition of an enterprise that operates as a separate legal entity or the acquisition of an enterprise that is merged into the operations of an existing U.S. affiliate.

In the survey, a U.S. business enterprise is categorized as "established" if a foreign entity or an existing U.S. affiliate of a foreign entity establishes a new legal entity in the United States in which the foreign entity owns 10 percent or more of the new business enterprise's voting interest or an equivalent interest if the enterprise is unincorporated. An existing U.S. affiliate is categorized as "expanded" if it expands its operations to include a new facility where business is conducted.

BEA reinstated the survey of new foreign direct investment in the United States in 2014 after ending the series after survey year 2008 because of budget cuts. The reinstated survey now includes expansions in an effort to measure greenfield investments more completely. Greenfield investment includes establishments of new companies by foreign investors and expansions of already existing companies. Because expansions were not included in the series that ended in 2008, the current series and the previous series are not comparable. The sum of acquisitions and establishments in the new series is comparable with the total investment outlays reported in the previous series.

The statistics on new foreign direct investment include transactions resulting from corporate inversions which occurs when a U.S. corporation that is currently the ultimate owner of its worldwide operations takes steps to become a wholly-owned subsidiary of a foreign corporation. A U.S. corporation can initiate an inversion either by creating a foreign corporation to be its new parent or by merging with an existing foreign corporation and ceding control. BEA's direct investment surveys do not collect information on whether a U.S. corporation became foreign owned as a result of a corporate inversion, so these transactions cannot be identified in the statistics based on the survey data alone. BEA is exploring ways to identify inversions, such as adding inversion-related questions to its data collection instruments or using outside sources of information regarding inversions, so that the effect of these transactions on the statistics can be quantified. The transactions associated with corporate inversions are also included in other BEA direct investment statistics. (7)

[ILLUSTRATION OMITTED]

The statistics on new foreign direct investment in the United States exclude statistics on holding companies established by foreign direct investors solely for the purpose of acquiring or establishing at least one other U.S. business enterprise. (8) However, the statistics include the acquisitions or establishments that are undertaken by a foreign-owned U.S. holding company. Newly established holding companies are required to file the survey so that these entities can be added to the sample frames for BEA's other surveys of foreign direct investment in the United States and so that the foreign parent's direct transactions with these companies can be included in the international transactions accounts and the international investment position accounts. The statistics on new investments also do not cover the acquisition of additional equity by a foreign parent in an existing U.S. affiliate, the acquisition of an existing U.S. affiliate by one foreign investor from another, or the expansion of the operations of an existing U.S. affiliate when no new facility where business is conducted is established. Sell-offs or other disinvestments are not subtracted from new investments. Finally, the statistics do not include any costs associated with the new investments in entities other than foreign direct investors or U.S. affiliates.

The statistics on new foreign direct investment in the United States are classified by country of ultimate beneficial owner (UBO), by industry of the affiliate, and by state. (9) Classification by country of UBO is used because the country that ultimately owns or controls a U.S. business and therefore derives benefits from owning or controlling the business is generally considered most important for analyzing these statistics. The UBO is the entity proceeding up a U.S. affiliate's ownership chain, beginning with the foreign parent, which is not owned more than 50 percent by another entity.

Classification by industry of affiliate requires that each U.S. business is classified in a single industry--the primary industry of the business based on sales or gross operating revenues. As a result, any activities that take place in secondary industries are classified as activities in the primary industry.

Classification by state indicates in which U.S. state the newly acquired, established, or expanded U.S. business is located. If the newly acquired or established U.S. business operates in more than one state, then the state where the greatest number of the employees are based is chosen as the location of business. If there are no employees, then the state of incorporation is chosen.

In addition to data on expenditures, the survey also collects data on the activities of the newly acquired, established, or expanded U.S. business. These additional data include balance sheet and income statement items--specifically sales, net income, assets, and liabilities for the U.S. business and the number of employees. Values for 2014 for these additional items will be released in the summer of 2016 with the revised statistics for 2014 and preliminary statistics for 2015.

By Thomas W. Anderson

(1.) Planned purchases of additional equity in a U.S. affiliate are not considered new foreign direct investment and are not included in these statistics. See the box "Relationship Between the New Investment Statistics and Other Statistics on FDIUS."

(2.) Statistics on expenditures before 2009 should be compared only with the 2014 statistics on acquisitions and establishments, because the older statistics did not include expenditures for expansions.

(3.) "Real estate" refers to commercial real estate. Purchases of residential real estate for the personal use of the investor are not included in these statistics.

(4.) The UBO is the entity proceeding up a U.S. affiliate's ownership chain, beginning with the foreign parent, which is not owned more than 50 percent by another entity.

(5.) For a definition of the foreign direct investment position in the United States, see the box "Relationship Between the New Investment Statistics and Other Statistics on FDIUS" in this article.

(6.) Information on the filing requirements for the survey may be found on BEA's Web site.

(7.) For additional information on how corporate inversions affect BEA's economic accounts, see Jessica M. Hanson, Howard I. Krakower, Raymond J. Mataloni Jr., and Kate L.S. Pinard, "The Effects of Corporate Inversions on the International and National Economic Accounts" SURVEY OF CURRENT BUSINESS 95 (February 2015).

(8.) A holding company is a company whose primary activity is holding the securities or financial assets of other companies.

(9.) For additional information on classifications by country of UBO or by industry of affiliate, see "Classification of Data" in Foreign Direct Investment in the United States: Final Results From the 2012 Benchmark Survey.

Introduction to the New Statistics

The new investment statistics released in November 2015 are based on information collected by the new survey of new foreign direct investment in the United States (BE-13), which reinstates and expands on the previous BE-13 survey, which was discontinued after 2008. Data from the previous surveys were used to produce statistics on establishments and acquisitions, but did not cover expansions. Statistics on new foreign direct investment initiated in 2014 and historical statistics from previous surveys are available on BEA's Website.

State and national policymakers, as well as analysts, can draw on the statistics to assess the effects of foreign direct investment on the U.S. economy and to gauge the relative attractiveness of states to foreign direct investors. Foreign entrepreneurs and others seeking to invest in the United States can use the new statistics to make more informed decisions. The survey also helps to ensure the complete coverage of BEA's other foreign direct investment statistics.

These new statistics will be released each year. Data for 2015 and revised data for 2014 will be available in the summer of 2016.

Relationship Between the New investment Statistics and Other Statistics on FDIUS

BEA publishes three sets of statistics on foreign direct investment in the United States: statistics on new foreign direct investment; on foreign direct investment transactions and the foreign direct investment position; and on the activities of multinational enterprises (AMNE). The statistics on new investment are related to each of the other two sets of statistics.

Statistics on expenditures for new investment partly overlap financial transaction statistics (chart 4). The new investment statistics include the total cost of the new investment whether the cost was paid by a foreign entity or by an existing U.S. affiliate. In the financial transactions statistics, only costs paid by a foreign entity are included. Financial transactions statistics measure net direct investment transactions between foreign direct investors and U.S. entities and include new investment costs paid by foreign entities, but also include transactions not related to new investments, such as full or partial sell-offs of equity, purchases of additional equity in existing U.S. affiliates, reinvestment of earnings, and intercompany lending transactions related to ongoing operations.

In 2014, financial transactions associated with foreign direct investment in the United States (FDIUS) were $106.6 billion. (1) These transactions are less than the $241.3 billion in expenditures for new investment partly because of the sizable disinvestment flows recorded in the financial transactions statistics. (2)

The new investment expenditures that are included in the financial transactions contribute to the inward direct investment position, which represents the accumulated total value of foreign direct investment. The inward direct investment position at historical cost totaled $2.9 trillion at year end 2014. (3)

The survey of new foreign direct investment in the United States, the source of the statistics on expenditures for new investment, also collects information on the finances and operations of the newly acquired, established, or expanded U.S. businesses. These "activities" statistics cover many of the same topics as covered in the AMNE statistics published annually for all U.S. affiliates. (4) The AMNE statistics for the U.S. businesses that were newly acquired, established, or expanded in 2014 will be released in the summer of 2016.

(1.) For detailed statistics, see Nathan R. Hansen and Ricardo Limes, "Foreign Direct In vestment in the United States for 2012-2014: Detailed Historica l-Cost Positions and Related Financial Transactions and Income Flows" SURVEY OF CURRENT BUSINESS 95 (September 2015) or line 67 in table 6.1 in the international transactions accounts.

(2.) Financial transactions that involved decreases in equity other than reinvestment of earnings totaled $171.3 billion in 2014. For more information, see table 5.3 in Hansen and Limes.

(3.) For detailed data on the foreign direct investment position in the United States, see Hansen and Limes, table 2.1 line 32.

(4.) For more information, see Rita Ismaylov and Ricardo Limes, "Activities of U.S. Affiliates of Foreign Multinational Enterprises in 2013 " SURVEY 95 (November 2015).

[ILLUSTRATION OMITTED]

Acknowledgments

The statistics on new foreign direct investment in the United States were prepared under the general direction of Patricia E. Abaroa, Chief of the Direct Investment Division, and Barbara K. Hubbard, Chief of the Direct Transactions and Positions Branch. Sarahelen Thompson, Associate Director for International Economics, provided overall supervision.

Amanda Budny, Chief of the New Foreign Investment Section, supervised the processing and editing of the survey. Diane I. Young, Chief of the Operations Systems and Analysis Branch, supervised the computer programming for data estimation and tabulation.

The following BEA staff made significant contributions.

Data collection, processing, and editing: Mackenzie A. Cater, Ayana Dudley, Antinica A. Knowles, Temitope E. Olukoya, Robert L. Rosholt, Gregory A. Tenentes, Yvonne Walker, Jeannette O. Williams, and Michael Wright.

Computer programming for data estimation and tabulation: Danit Kanal, Neeta Kapoor, Gary E. Sowers, and Brent Spithaler.

Statistical analysis and data dissemination: Thomas Anderson, Ricardo Limes, Raymond J. Mataloni, and Daniel R. Yorgason.

Chart 2. Expenditures for New Foreign Direct Investment and Foreign
Direct Investment Position in the United States by Country UBO, 2014

Expenditures for new foreign direct investment in the United States
(Millions of dollars)

Ireland                                      $42,545
Canada                                       $30,669
Germany                                      $29,042
Japan                                        $27,870
United Kingdom                               $24,399
Switzerland                                  $17,078
The Netherland                               $ 9,025
Singapore                                    $ 7,913
Other                                        $52,722

Direct investment position in the United States
(Millions of dollars)

Switzerland                                  $151,721
Ireland                                      $159,515
The Netherland                               $185,053
France                                       $240,212
Canada                                       $311,383
Germany                                      $312,898
Japan                                        $374,720
United Kingdom                               $465,795
Other                                        $699,762

UBO Ultimate beneficial owner
U.S. Bureau of Financial Analysis

Note: Table made from pie chart.

Table 1. First-Year Expenditures and Planned Total Expenditures for
Investments Initiated in 2014, Industry of Affiliate by Type
of Investment (1)
[Millions of dollars]

                                      First-year expenditures (1)


                                              By type of investment
                              Total        U.S.         U.S.        U.S.
                                     businesses   businesses  businesses
                                       acquired  established    expanded
                              (1)        (2)         (3)          (4)

   All industries           241,261     224,688       13,822       2,751
Manufacturing               139,105     136,286        1,236       1,582
 Food                         6,759       6,485          224          50
 Beverages and tobacco
 products                       (D)         (D)            0           0
 Paper                          346         (D)            0         (D)
 Petroleum and coal
 products                         3           0            0           3
 Chemicals                   78,928      78,249          200         479
  Basic chemicals             1,211         (D)            0         (D)
  Pharmaceuticals and
  medicines                  75,888      75,875          (D)         (D)
  Other                       1,829         (D)          (D)         (D)
 Plastics and rubber
 products                     5,018       4,764          250           4
 Nonmetallic mineral
 products                     1,271       1,269            2           0
 Primary and fabricated
 metals                       2,974       2,002          228         744
  Primary metals              2,487         (D)          190         (D)
  Fabricated metal
  products                      487         (D)           38         (D)
 Machinery                    1,475       1,449           21           5
 Computers and electronic
 products                    12,902      12,880           19           3
  Semiconductors and other
  electronic components         (D)         (D)            4           3
  Navigational, measuring,
  and other instruments         (D)         (D)          (D)           0
  Other                         (D)         (D)          (D)         (*)
 Electrical equipment,
 appliances, and
 components                   3,822         (D)          (D)           3
 Transportation equipment     1,552       1,324           88         140
  Motor vehicles, bodies
  and trailers, and parts     1,301       1,092           88         121
  Other                         251         232          (*)          19
 Other                          (D)         (D)          (D)         (D)
Wholesale trade               4,556       4,482           55          19
 Motor vehicles and motor
 vehicle parts and
 supplies                        11           7            4         (*)
 Electrical goods               532         (D)          (D)           0
 Petroleum and petroleum
 products                       (D)         (D)            0           0
 Other                          (D)       3,854          (D)          19
Retail trade                  3,856       3,827          (D)         (D)
 Food and beverage stores       (D)         (D)          (*)           0
 Other                          (D)         (D)          (D)         (D)
Information                  21,330      21,049          268          13
 Publishing industries       14,437      14,420          (D)         (D)
 Telecommunications             631         630          (*)           0
 Other                        6,263       5,999          (D)         (D)
Finance and insurance         8,701       7,265        1,327         109
 Depository credit
 intermediation (banking)        82         (D)          (D)         (D)
 Finance, except
 depository institutions      4,731       3,802          (D)         (D)
 Insurance carriers and
 related activities           3,888         (D)          (D)           7
Real estate and rental and
leasing                      20,774      15,521        4,792         461
 Real estate                 10,510       5,788        4,260         461
 Rental and leasing
 (except real estate)        10,265       9,733          532           0
Professional, scientific,
and technical services        8,190       7,676          499          15
 Architectural,
 engineering, and related
 services                       525         522            2           1
 Computer systems design
 and related services         1,329       1,303          (D)         (D)
 Management, scientific,
 and technical consulting       436         430            6           0
 Other                        5,899       5,420          (D)         (D)
Other industries             34,749      28,581          (D)         (D)
 Mining                      13,173      11,794          (D)         (D)
 Utilities                    7,240       6,241          (D)         (D)
 Construction                   420         182          (D)         (D)
 Transportation and
 warehousing                  3,519       3,466          (D)         (D)
 Administration, support,
 and waste management         3,052       2,417          625          10
 Health care and social
 assistance                     (D)         (D)            1           2
 Accommodation and food
 services                       694         681           11           2
 Other                          (D)         (D)        2,826          21

                             Planned total expenditures (first-year and
                                         planned future) (2)

                                          By type of investment
                             Total         U.S.         U.S.        U.S.
                                     businesses   businesses  businesses
                                       acquired  established    expanded
                             (5)        (6)          (7)          (8)

   All industries           263,858     224,688       31,345       7,825
Manufacturing               148,399     136,286        5,974       6,139
 Food                         6,894       6,485          (D)         (D)
 Beverages and tobacco
 products                       (D)         (D)            0           0
 Paper                          (D)         (D)          (D)         (D)
 Petroleum and coal
 products                         3           0            0           3
 Chemicals                   79,998      78,249          (D)         (D)
  Basic chemicals             1,211         (D)            0         (D)
  Pharmaceuticals and
  medicines                     (D)      75,875          (D)         (D)
  Other                         (D)         (D)          715         (D)
 Plastics and rubber
 products                     6,461       4,764          (D)         (D)
 Nonmetallic mineral
 products                       (D)       1,269          (D)           0
 Primary and fabricated
 metals                       5,095       2,002          402       2,691
  Primary metals              4,587         (D)          (D)       2,671
  Fabricated metal
  products                      508         (D)          (D)          20
 Machinery                      (D)       1,449           29         (D)
 Computers and electronic
 products                       (D)      12,880          (D)           3
  Semiconductors and other
  electronic components         (D)         (D)            4           3
  Navigational, measuring,
  and other instruments         141         (D)          (D)           0
  Other                         (D)         (D)           18         (*)
 Electrical equipment,
 appliances, and
 components                     (D)         (D)          (D)           3
 Transportation equipment     3,395       1,324          338       1,732
  Motor vehicles, bodies
  and trailers, and parts     3,084       1,092          336       1,655
  Other                         311         232            2          77
 Other                          (D)         (D)          (D)         (D)
Wholesale trade               4,655       4,482           64         109
 Motor vehicles and motor
 vehicle parts and
 supplies                        11           7            4         (*)
 Electrical goods               532         (D)          (D)           0
 Petroleum and petroleum
 products                       (D)         (D)            0           0
 Other                          (D)       3,854          (D)         109
Retail trade                  3,882       3,827          (D)         (D)
 Food and beverage stores       (D)         (D)          (*)           0
 Other                          (D)         (D)          (D)         (D)
Information                  21,405      21,049          (D)         (D)
 Publishing industries          (D)      14,420          (D)         (D)
 Telecommunications             631         630          (*)           0
 Other                          (D)       5,999          (D)         (D)
Finance and insurance         9,220       7,265          (D)         (D)
 Depository credit
 intermediation (banking)        82         (D)          (D)         (D)
 Finance, except
 depository institutions        (D)       3,802        1,071         (D)
 Insurance carriers and
 related activities             (D)         (D)          (D)           7
Real estate and rental and
leasing                      26,974      15,521          (D)         (D)
 Real estate                    (D)       5,788       10,285         (D)
 Rental and leasing
 (except real estate)           (D)       9,733          (D)           0
Professional, scientific,
and technical services        8,214       7,676          524          15
 Architectural,
 engineering, and related
 services                       525         522            2           1
 Computer systems design
 and related services           (D)       1,303           34         (D)
 Management, scientific,
 and technical consulting       436         430            6           0
 Other                          (D)       5,420          482         (D)
Other industries             41,108      28,581       11,635         892
 Mining                         (D)      11,794          (D)          85
 Utilities                   10,687       6,241          (D)         (D)
 Construction                   952         182          (D)         (D)
 Transportation and
 warehousing                    (D)       3,466           11         (D)
 Administration, support,
 and waste management         3,056       2,417          625          14
 Health care and social
 assistance                     (D)         (D)            1           2
 Accommodation and food
 services                       694         681           11           2
 Other                          (D)         (D)        3,468         (D)

(*) Less than $500,000.
(D) Suppressed to avoid disclosure of data on individual companies.
(1). First-year expenditures include expenditures in the calendar year
in which the transaction occurred.
(2). Planned total expenditures include first-year expenditures for
all investments plus planned future expenditures for establishments and
expansions that are multiyear investments. For acquired U.S. businesses,
first-year expenditures and planned total expenditures are the same.

Table 2. First-Year Expenditures and Planned Total Expenditures for
Investments Initiated in 2014, Country of UBO by Type of Investment (1)
[Millions of dollars]

                                 First-year expenditures (2)

                                            By type of investment
                             Total         U.S.         U.S.        U.S.
                                     businesses   businesses  businesses
                                       acquired  established    expanded
                              (1)        (2)         (3)          (4)

   All countries           241,261      224,688       13,822       2,751
Canada                      30,669       26,661        3,284         724
Europe                     137,774      133,099        3,473       1,201
 Belgium                       668          633           32           3
 Denmark                       811          763          (D)         (D)
 Finland                       259          (D)          (*)         (D)
 France                      4,914          (D)          (D)           5
 Germany                    29,042       28,357          420         265
 Ireland                    42,545          (D)          (*)         (D)
 Italy                         600          467          109          24
 Netherlands                 9,025        8,149          863          14
 Spain                       1,841        1,697          (D)         (D)
 Sweden                      1,385        1,383            2           0
 Switzerland                17,078       16,358          (D)         (D)
 United Kingdom             24,399       23,492          863          44
 Other                       5,206        4,487          (D)         (D)
Latin America and Other
Western Hemisphere          15,725       14,951          745          28
 South and Central
 America                     1,815        1,716          (D)         (D)
  Brazil                        11          (*)           10           0
  Mexico                       (D)          (D)           10           0
  Venezuela                    (D)            0          (*)         (D)
  Other                        (D)          (D)          (D)           0
 Other Western Hemisphere   13,909       13,235          (D)         (D)
  Bermuda                    6,524        6,419          104           1
  United Kingdom Islands,
  Caribbean (4)              7,021        6,452          (D)         (D)
  Other                        365          365            1           0
Africa                          95          (D)          (D)           0
 South Africa                  (D)          (D)           0            0
 Other                         (D)          (D)          (D)           0
Middle East                  1,809        1,566          (D)         (D)
 Israel                        738          655          (D)         (D)
 Saudi Arabia                  111            1          (D)         (D)
 United Arab Emirates          (D)          (D)          (*)           0
 Other                         (D)          (D)          (D)           0
Asia and Pacific            51,538       45,146        5,687         706
 Australia                   2,358        2,316           40           2
 China                       3,694        2,370          (D)         (D)
 Hong Kong                   6,657          (D)          (D)           0
 India                         440           75          366           0
 Japan                      27,870       25,055        2,665         150
 Korea, Republic of          2,452        1,188          (D)         (D)
 Singapore                   7,913        7,830           82           0
 Taiwan                         35          (D)          (D)           3
 Other                         120          (D)          (D)           0
United States (5)            3,651          (D)          423         (D)

                            Planned total expenditures (first-year
                            and planned future) (3)
                                            By type of investment
                             Total         U.S.         U.S.        U.S.
                                     businesses   businesses  businesses
                                       acquired  established    expanded
                              (5)         (6)        (7)          (8)

   All countries           263,858      224,688       31,345       7,825
Canada                      31,870       26,661        3,826       1,383
Europe                     144,734      133,099        7,628       4,006
 Belgium                       668          633           32           3
 Denmark                       (D)          763           45         (D)
 Finland                       (D)          (D)          (*)         (D)
 France                        (D)          (D)          (D)         (D)
 Germany                    30,161       28,357          (D)         (D)
 Ireland                    42,545          (D)          (*)         (D)
 Italy                         665          467          (D)         (D)
 Netherlands                 9,187        8,149          (D)         (D)
 Spain                         (D)        1,697          224         (D)
 Sweden                      1,386        1,383            2           0
 Switzerland                   (D)       16,358          386         (D)
 United Kingdom             26,761       23,492          (D)         (D)
 Other                         (D)        4,487          (D)         (D)
Latin America and Other
Western Hemisphere             (D)       14,951          (D)         (D)
 South and Central
 America                       (D)        1,716          (D)         (D)
  Brazil                        11          (*)           10           0
  Mexico                       (D)          (D)           10           0
  Venezuela                    (D)            0          (*)         (D)
  Other                        (D)          (D)          (D)         (D)
 Other Western Hemisphere   14,096       13,235          (D)         (D)
  Bermuda                    6,681        6,419          261           1
  United Kingdom Islands,
  Caribbean (4)              7,050        6,452          (D)         (D)
  Other                        365          365            1           0
Africa                          95          (D)          (D)           0
 South Africa                  (D)          (D)            0           0
 Other                         (D)          (D)          (D)           0
Middle East                  2,305        1,566          (D)         (D)
 Israel                        (D)          655          (D)         (D)
 Saudi Arabia                  348            1          (D)         (D)
 United Arab Emirates          (D)          (D)          (*)           0
 Other                         (D)          (D)          265           0
Asia and Pacific            65,106       45,146       17,927       2,033
 Australia                     (D)        2,316          (D)           2
 China                       9,996        2,370          (D)         (D)
 Hong Kong                     (D)          (D)          496           0
 India                         (D)           75          (D)           0
 Japan                      32,325       25,055        6,474         796
 Korea, Republic of          4,651        1,188          (D)         (D)
 Singapore                     (D)        7,830          (D)           0
 Taiwan                         37          (D)          (D)           3
 Other                         120          (D)          (D)           0
United States (5)              (D)          (D)          (D)         (D)

(*) Less than $500,000.
(D) Suppressed to avoid disclosure of data on individual companies.
(1.) The Ultimate Beneficial Owner (UBO) is the entity, proceeding up
the foreign ownership chain, which is not more than 50 percent owned by
another entity. The UBO is the entity that ultimately owns or controls
and thus ultimately derives the benefits and assumes the risks from
owning or controlling an affiliate.
(2.) First-year expenditures include expenditures in the calendar year
in which the transaction occurred.
(3.) Planned total expenditures include first-year expenditures for all
investments plus planned future expenditures for establishments and
expansions that are multiyear investments. For acquired U.S.
businesses, first-year expenditures and planned total expenditures are
the same.
(4.) The "United Kingdom Islands, Caribbean" consists of the British
Virgin Islands, the Cayman Islands, Montserrat, and the Turks and
Caicos Islands.
(5.) The United States is the country of ultimate beneficial owner for
businesses newly acquired, established, or expanded by foreign
investors that are ultimately owned by persons located in the United
States.

Table 3. First-Year Expenditures and Planned Total Expenditures for
Investments Initiated in 2014, State by Type of Investment (1)
[Millions of dollars]

                           First-year expenditures (2)

                                       By type of investment
                      Total         U.S.         U.S.        U.S.
                              businesses   businesses  businesses
                                acquired  established    expanded
                       (1)        (2)         (3)           (4)

  Total             241,261      224,688       13,822       2,751
New England:
 Connecticut          1,461          (D)          (D)           0
 Maine                  (D)          (D)            0           0
 Massachusetts        7,019        5,090          (D)         (D)
 New Hampshire        1,108        1,108            0           0
 Rhode Island           189          189            0           0
 Vermont                (D)          (D)            0           0
Mideast:
 Delaware             2,411        1,145        1,262           4
 District of
 Columbia             1,084          847          237           0
 Maryland             2,940        2,806          (D)         (D)
 New Jersey          17,546       17,434          112           0
 New York            35,711          (D)          (D)         (D)
 Pennsylvania         7,446        7,429           14           2
Great Lakes:
 Illinois            12,818       12,206          587          25
 Indiana              5,437        5,260          103          73
 Michigan             1,990        1,873           76          41
 Ohio                 2,095        1,852          (D)         (D)
 Wisconsin            2,510        2,497          (D)         (D)
Plains:
 Iowa                 1,316          (D)          (D)           0
 Kansas                 263          (D)          (D)           0
 Minnesota            2,869        2,648          (D)         (D)
 Missouri             2,201        2,122           79           0
 Nebraska               (D)          (D)            0           0
 North Dakota           (D)          (D)            0           0
 South Dakota           (D)          (D)            0           0
Southeast:
 Alabama                664          (D)          (D)         (D)
 Arkansas                61          (D)          (*)         (D)
 Florida              4,274          (D)          (D)           0
 Georgia              1,652          863          718          72
 Kentucky               (D)          (D)          (D)         (D)
 Louisiana              579          (D)          (D)           0
 Mississippi            (D)          (D)          (D)           2
 North Carolina       3,771        3,642          (D)         (D)
 South Carolina         564          530          (D)         (D)
 Tennessee            1,233          (D)          (D)           1
 Virginia               (D)          (D)          (D)           0
 West Virginia            5            5            0           0
Southwest:
 Arizona                (D)          (D)          (D)         (D)
 New Mexico             (D)          (D)            1         (*)
 Oklahoma             1,937          (D)          (D)           0
 Texas               20,496       17,831          961       1,704
Rocky Mountains:
 Colorado             3,405        3,371           33           2
 Idaho                    3            0            3           0
 Montana                (D)          (D)            0           0
 Utah                   (D)          (D)            0         (D)
 Wyoming                  2            2            0           0
Far West:
 Alaska                 (D)          (D)            0           0
 California          48,947       45,792        3,029         126
 Hawaii                 444          274          170           0
 Nevada                 246          193          (D)         (D)
 Oregon                 551          546            0           5
 Washington          16,415       16,283          130           2
Puerto Rico               0            0            0           0
Other U.S.
areas (4)                 0            0            0           0
Unspecified (5)       1,019          369          552          98

                     Planned total expenditures (first-year
                     and planned future) (3)
                                By type of investment
                      Total         U.S.         U.S.        U.S.
                              businesses   businesses  businesses
                                acquired  established    expanded
                       (5)         (6)         (7)          (8)

  Total             263,858      224,688       31,345       7,825
New England:
 Connecticut          1,461          (D)          (D)           0
 Maine                  296          (D)          (D)           0
 Massachusetts        7,099        5,090          (D)         (D)
 New Hampshire        1,108        1,108            0           0
 Rhode Island           189          189            0           0
 Vermont                (D)          (D)            0           0
Mideast:
 Delaware             3,633        1,145          (D)         (D)
 District of
 Columbia               (D)          847          (D)           0
 Maryland             2,952        2,806          (D)         (D)
 New Jersey          17,824       17,434          (D)         (D)
 New York            37,956          (D)          (D)          92
 Pennsylvania         7,453        7,429           18           6
Great Lakes:
 Illinois               (D)       12,206          588         (D)
 Indiana              6,153        5,260          (D)         (D)
 Michigan             2,185        1,873          (D)         (D)
 Ohio                 2,311        1,852          299         160
 Wisconsin            2,511        2,497          (D)         (D)
Plains:
 Iowa                 1,316          (D)          (D)           0
 Kansas                 263          (D)          (D)           0
 Minnesota            2,869        2,648          (D)         (D)
 Missouri             2,201        2,122           79           0
 Nebraska               (D)          (D)            0         (*)
 North Dakota           (D)          (D)            0           0
 South Dakota           (D)          (D)            0           0
Southeast:
 Alabama                669          (D)          (D)         (D)
 Arkansas               (D)          (D)            2         (D)
 Florida                (D)          (D)        1,137           0
 Georgia              2,260          863        1,219         178
 Kentucky               (D)          (D)          (D)         (D)
 Louisiana              (D)          (D)          (D)           0
 Mississippi            (D)          (D)          (D)         (D)
 North Carolina       3,909        3,642          (D)         (D)
 South Carolina         (D)          530          (D)          54
 Tennessee            2,988          (D)          (D)         (D)
 Virginia             3,932          (D)          (D)           0
 West Virginia            5            5            0           0
Southwest:
 Arizona                (D)          (D)          (D)         (D)
 New Mexico             (D)          (D)          (D)         (*)
 Oklahoma             1,937          (D)          (D)           0
 Texas               25,576       17,831        3,399       4,346
Rocky Mountains:
 Colorado               (D)        3,371          (D)         (D)
 Idaho                    3            0            3           0
 Montana                (D)          (D)            0           0
 Utah                   (D)          (D)            0         (D)
 Wyoming                (D)            2          (D)           0
Far West:
 Alaska                 (D)          (D)            0           0
 California          53,516       45,792        7,535         189
 Hawaii                 629          274          355           0
 Nevada                 (D)          193          (D)         (D)
 Oregon                 (D)          546            0         (D)
 Washington          16,575       16,283          (D)         (D)
Puerto Rico               0            0            0           0
Other U.S.
areas (4)                 0            0            0           0
Unspecified (5)       1,019          369          552          98

(*) Less than $500,000
(D) Suppressed to avoid disclosure of data on individual companies.
(1). The state where the newly acquired, established, or expanded U.S.
business enterprise is located. If the U.S. business enterprise
operates in more than one state, it is the state where the largest
number of employees are based; if there are no employees it is the
state of incorporation of the U.S. business enterprise.
(2). First-year expenditures include expenditures in the calendar year
in which the transaction occurred.
(3). Planned total expenditures include first-year expenditures for all
investments plus planned future expenditures for establishments and
expansions that are multiyear investments. For acquired U.S.
businesses, first-year expenditures and planned total expenditures are
the same.
(4). Consists of the U.S. Virgin Islands, Guam, American Samoa, and all
other outlying U.S. areas.
(5). Expenditures are listed as unspecified if BEA has no indication of
the affiliate location, such as on the claim for exemption forms, where
this information is not collected.