New foreign direct investment in the United States in 2015.

Anderson, Thomas

IN JULY 2016, the Bureau of Economic Analysis released statistics on new foreign direct investment in the United States that was initiated in 2015. Foreign direct investors' expenditures for new investment--which include spending to acquire, establish, or expand U.S. businesses--totaled $420.7 billion, an increase of 68 percent from 2014 (table A and chart 1). The 2015 increase in new foreign direct investment reflected an increase in global mergers and acquisition activity. (1)

In 2015, as in 2014, the majority of the expenditures were to acquire existing businesses. In 2015, expenditures to acquire existing businesses were $408.1 billion. Expenditures to establish new U.S. businesses were $11.2 billion, and expenditures to expand existing foreign-owned businesses were $1.4 billion. Planned total expenditures, which include the 2015 expenditures and planned future expenditures, totaled $439.2 billion.

Expenditures by industry, by country, and by state

Expenditures by industry. As in 2014, manufacturing accounted for more than half of total new investment expenditures in 2015. Expenditures for new investment in manufacturing were $281.4 billion (table 1). Within manufacturing, expenditures were largest in chemicals, mostly in pharmaceuticals and medicines.

Expenditures in finance and insurance, in real estate and rental and leasing, and in professional, scientific, and technical services were also large.

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Expenditures by country. By country of ultimate beneficial owner (UBO), the largest source of new direct investment in the United States in 2015 was Ireland, at $176.5 billion (table 2). Expenditures from Canada and Germany were also substantial. Expenditures from Ireland and Germany were mostly in manufacturing. Expenditures from Canada were largest in finance and insurance and in real estate and rental and leasing. Ireland was also the largest source country in 2014.

The top six countries for new foreign direct investment--United Kingdom, lapan, Canada, Germany, France, Ireland--were also the six largest countries in terms of foreign direct investment position in the United States by country of UBO in 2015 (chart 2).

Expenditures by state. California received the most new foreign direct investment in 2015, $119.0 billion or 28 percent of the total (table 3). California also received the largest expenditures in 2014. In 2015, Minnesota received the second-largest expenditures; Texas received the third largest.

Expenditures for new investment were 2.4 percent of U.S. gross domestic product (GDP) in 2015, compared with 1.7 percent in 2014. In 2015, expenditures were more than 2 percent of state GDP in 12 states (chart 3). (2)

To avoid the disclosure of the data on individual companies, the statistics on 2015 expenditures for 17 states were suppressed. Combined expenditures for these states accounted for 32.6 percent of expenditures and for 5.0 percent of state GDP.

Greenfield expenditures

Greenfield investment expenditures--expenditures either to establish a new U.S. business or to expand an existing foreign-owned U.S. business--totaled $12.6 billion in 2015. In 2014, greenfield expenditures were $14.8 billion. Total planned greenfield investment expenditures initiated in 2015, which include both first-year expenditures and planned spending in other years, were $31.2 billion.

By industry, greenfield expenditures in 2015 were largest in real estate and rental and leasing, $6.2 billion. This industry accounted for about half of all first-year greenfield expenditures.

By country of UBO, Japan had the largest expenditures for greenfield investment, at $3.1 billion for first-year expenditures and $6.6 billion for planned total expenditures.

By state, New York received the most greenfield investment, $4.0 billion. Greenfield investment was also substantial in Pennsylvania and California.

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Number of investments

In 2015, there were 1,834 transactions for new foreign direct investment in the United States, down from 2,440 in 2014. However, in 2015, 19 transactions were valued at more than $5 billion, compared with 10 such transactions in 2014. These very large transactions accounted for more than two-thirds of expenditures in 2015, compared with less than half of expenditures in 2014.

Transactions to establish a new U.S. business accounted for the largest number (869, or 47.4 percent) of all transactions in 2015. Acquisitions of existing U.S. businesses accounted for 791 transactions, and expansions accounted for 174 transactions. The average expenditure per transaction for acquisitions was $516 million; for establishments, $13 million; and for expansions, $8 million.

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Employment

In 2015, employment at newly acquired, established, or expanded foreign-owned businesses in the United States was 422,200, down from 734,000 in 2014. (3) Total planned employment--which includes current employment of acquired enterprises, the planned employment of newly established business enterprises once they are fully operating, and the planned employment associated with new facilities of expanded business enterprises--was 461,600. Current employment of acquired enterprises (418,000) accounted for the bulk of the 2015 totals.

By industry, manufacturing accounted for the largest number of employees in 2015 (139,500). Employment was also substantial in administration, support, and waste management and in retail trade. In 2014, employment was greatest in retail trade (293,000).

By country of UBO, Canada and France accounted for the largest number of employees in 2015. Canada also accounted for the largest number of employees in 2014.

By state, investments in California and Arizona accounted for the largest numbers of employees in 2015 (chart 4). Investments in Florida and Illinois accounted for the largest numbers of employees in 2014.

Statistics on other activities

Total sales by newly acquired, established, or expanded affiliates were $121.4 billion in 2015, down from $205.7 billion in 2014. (4) Net income of newly acquired or established affiliates was $8.3 billion in 2015, up from $7.3 billion in 2014. Assets, liabilities, and owner's equity for new acquired and established affiliates were $355.6 billion, $215.4 billion, and $140.2 billion in 2015, respectively, all up from 2014. (5)

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Relationship Between the New Investment Statistics and Other Statistics on Foreign Direct Investment in the United States

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 transactions statistics (see the chart). The new investment statistics include the total cost of the new investment whether the funds were obtained from domestic or foreign sources. In the financial transactions statistics, only funds obtained from the foreign parent group 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 2015, financial transactions associated with foreign direct investment in the United States were $348.4 billion. (6) 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 $3.1 trillion at yearend 2015. (7)

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The survey of new foreign direct investment in the United States 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 items covered in the AMNE statistics that are published annually for all U.S. affiliates. (8)

Technical Note

The statistics of new investment 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 the Bureau of Economic Analysis (BEA). The survey covers U.S. business enterprises that were acquired, established, or expanded by foreign direct investors. The survey forms and information on the filing requirements for the survey may be found or BEAs Web site.

A U.S. business enterprise is categorized as "acquired" if a foreign entity acquires 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. A U.S. affiliate is a foreign-owned U.S. business enterprise. 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 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 better capture greenfield investments. 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 starting with 2014 is not directly comparable with the previous series ending in 2008.

The statistics of new foreign direct investment include transactions resulting from corporate inversions A corporate inversion occurs when a domestic corporation that is currently the ultimate owner of its worldwide operations takes steps to become a 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. BEAs 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 separately identified in the statistics based only on the survey data. Using publicly available information, such as commercial databases, press releases, and media reports, BEA estimates that newly inverted U.S. corporations accounted for approximately 20 percent of expenditures for acquisitions in 2015.

Following an inversion, the foreign parent of the inverted U.S. corporation may acquire additional U.S. businesses--either directly, or through the inverted U.S. corporation, or through other subsidiaries. The U.S. targets of these second-round acquisitions might also be considered inverted U.S. corporations, but these transactions cannot be readily disentangled from other changes in the consolidated U.S. operations of the foreign parent. Therefore, BEA has not attempted to identify the effect of these second-round acquisitions on the statistics.

The transactions associated with corporate inversions are also included in other BEA direct investment statistics. For additional information on how corporate inversions affect BEAs 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).

The statistics on new foreign direct investment 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. (9) However, acquisitions or establishments that are undertaken by a foreign-owned U.S. holding company are included in the statistics. In addition, the statistics on new investments 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 an existing U.S. affiliate when no new operation or facilities are established. Sales of parts or all of the U.S. affiliate or other disinvestments are not subtracted from new investments.

(1.) According to Thomson Reuters, worldwide mergers and acquisition expenditures rose 42 percent in 2015.

(2.) New investment expenditures as a percentage of state GDP is a rough measure of the relative attractiveness of a state to foreign direct investors. This ratio does not necessarily imply that the entirety of a new investment adds directly to state GDP, because acquired affiliates have already been contributing to state GDP, and some of the goods and services produced for the investments associated with establishments and expansions could have been procured from outside the state.

(3.) Statistics on employment at expanded business only include employment at the expanded portion of the business.

(4.) For establishments and expansions, sales are total projected annual sales of the new facility once it is fully operating.

(5.) Net income, assets, liabilities, and owner's equity for establishments are the projected amounts from the first full year of operations. For expansions, these items were not collected, because the new facilities generally do not maintain separate accounting records from the already existing facilities of the business enterprise.

(6.) For detailed statistics, see table 6.1 in the international transactions accounts.

(7.) Detailed data on the foreign direct investment position in the United States are available on BEA's Web site.

(8.) For more information on the statistics for U.S. affiliates, see Sarah Stutzman, "Activities of U.S. Affiliates of Foreign Multinational Enterprises in 2014," in this issue of the SURVEY.

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

Revisions

Preliminary statistics on expenditures for new foreign direct investment in the United States for 2014, which were released in November 2015, have been revised. The revised statistics incorporate revised survey reports and reports that were not received or could not be processed in time for the preliminary publication.

Data Availability

Detailed statistics on new foreign direct investment in the United States--including statistics for 1980-2007, revised 2014 statistics, and preliminary 2015 statistics--are available on BEA's Web site. Statistics are not available for 2008-2013.

In July 2016, BEA introduced new statistics for 2014 and 2015 on the activities of newly acquired, established, or expanded U.S. affiliates by state, country, and industry. These new statistics supplement the statistics on expenditures for new investment and include current and planned employment and sales, net income, assets, liabilities, and total owner's equity. The statistics offer more detail, including state-level detail, than similar statistics BEA produced until 2008. The new statistics are available with the statistics on expenditures for new investment on BEAs Web site in the interactive tables.

Acknowledgments

The survey of new foreign direct investment in the United States was conducted under the direction of Patricia E. Abaroa and Barbara K. Hubbard. Amanda I. Budny supervised the processing of the survey. Diane I. Young supervised the computer programming for data estimation and tabulation.

The following BEA staff made significant contributions: Thomas Anderson, Michael Baek, Mackenzie A. Cater, Ayana Dudley, Neeta Kapoor, Danit Kanal, Antinica A. Knowles, Ricardo Limes, Raymond J. Mataloni, Temitope E. Olukoya, Kaleb Rogers, Gary E. Sowers, Brent Spithaler, Gregory A. Tenentes, Jean-nette O. Williams, Jonas Wilson, Michael Wright, and Daniel R. Yorgason.

Table A. Selected Statistics for New Investment by Foreign Direct
Investors, By Type of Investment, 2014 and 2015

                               Total
                               number of    Expenditures
                               investments  (millions of dollars)
                                            First year (1)  Planned (2)

                                                       2014
Total                             2,440        250,581      275,767
U.S. businesses acquired          1,126        235,799      235,799
Greenfield investment             1,314         14,782       39,969
 U.S. businesses acquired         1,129         12,473       33,516
 U.S. businesses expanded (8)       185          2,309        6,453
                                                       2015
Total                             1,834        420,691      439,209
U.S. businesses acquired            791        408,056      408,056
Greenfield investment             1,043         12,635       31,153
 U.S. businesses acquired           869         11,249       24,509
 U.S. businesses expanded (8)       174          1,387        6,644


                               Employment
                               (thousands)
                               Current (3)  Planned (4)

                                         2014
Total                             734.0       760.3
U.S. businesses acquired          719.3       719.3
Greenfield investment              14.7        41.0
 U.S. businesses acquired           8.6        21.5
 U.S. businesses expanded (8)       6.1        19.5
                                         2015
Total                             422.2       461.6
U.S. businesses acquired          418.0       418.0
Greenfield investment               4.3        43.7
 U.S. businesses acquired           1.2        33.9
 U.S. businesses expanded (8)       3.1         9.8

                                          New
                               Sales (5)  income (6)  Assete (7)

                                    Millions of dollars


Total                          205,742     7,270      273,566
U.S. businesses acquired       190,888     7,039      231,408
Greenfield investment           14,854       231       42,159
 U.S. businesses acquired        7,077       231       42,159
 U.S. businesses expanded (8)    7,777      n.a.         n.a.

Total                          121,396     8,272      355,606
U.S. businesses acquired       110,405     8,026      329,711
Greenfield investment           10,991       246       25,895
 U.S. businesses acquired        3,915       246       25,895
 U.S. businesses expanded (8)    7,076      n.a.         n.a.

                                               Owners
                               Liabilites (7)  equity (7)

                                  Millions of dollars


Total                             172,245      101,321
U.S. businesses acquired          151,861       79,547
Greenfield investment              20,384       21,774
 U.S. businesses acquired          20,384       21,774
 U.S. businesses expanded (8)        n.a.         n.a.

Total                             215,418      140,188
U.S. businesses acquired          203,390      126,322
Greenfield investment              12,028       13,867
 U.S. businesses acquired          12,028       13,867
 U.S. businesses expanded (8)         n.a.        n.a.

(1.) First-year expenditures include expenditures in the year in which
the transaction occurred.
(2.) Planned total expenditures include first-year expenditures for all
investments plus planned future expenditures (and expenditures from
past years, if any) for establishments and expansions that are
multiyear investments. For acquired U.S. businesses, first-year
expenditures and planned total expenditures are the same.
(3.) Current employment includes the employment of the acquired,
established, or new facilities of expanded affiliates at the time the
transactions occurred or the investments were initiated.
(4.) Planned employment consists of the current employment of acquired
enterprises, the planned employment of established business enterprises
once they are fully operating, and the planned employment associated
with the new facilities of expanded business enterprises once they are
fully operating.
(5.) For a newly acquired enterprise, sales are total annual sales for
the fiscal year that ended on, or before, the acquisition of the U.S.
business enterprise. For a newly established enterprise, sales are
total annual sales for the fiscal year that ended on, or before, the
establishment of the U.S. business enterprise. For an expanded U.S
enterprise, sales are projected annual sales of the new facility once
it is fully operating.
(6.) For a newly acquired enterprise, net income is the annual net
income (loss) after provision for U.S. federal, state, and local income
taxes for the fiscal year that ended on, or before, the acquisition of
the U.S. business enterprise. For a newly established enterprise, net
income is the annual net income (loss) after provision for U.S.
federal, state, and local income taxes for the fiscal year that ended
on, or before, the establishment of the U.S. business enterprise.
(7.) For a newly acquired enterprise, total assets, liabilities, and
owner's equity are for the fiscal year that ended on, or before, the
acquisition of the U.S. business enterprise. For a newly established
enterprise, total assets, liabilities, and owner's equity are for the
fiscal year that ended on, or before, the establishment of the U.S.
business enterprise.
(8.) Net income and balance sheet items of expanded U.S. business
enterprises were not collected because the new facilities generally do
not maintain accounting records for expansions separate from those used
for the already existing facilities of the business enterprise.

Table 1. First-Year Expenditures and Current Employment Associated With
Investments Initiated in 2014 and 2015, Industry of Affiliate by Type
of Investment

                                      First-year expenditures
                                     (millions of dollars) (1)
                                    2014               2015

                                       Of which:            Of which:
                               Total  greenfield    Total   greenfield
                                (1)       (2)        (3)        (4)

     All industries           250,581  14,782      420,691    12,635
Manufacturing                 136,310   3,129      281,410     1,176
 Food                           6,277     395        3,160        71
 Beverages and
 tobacco products                  (D)      0          673        (D)
 Paper                            682      (D)         436        (D)
 Petroleum and
 coal products                      0       0            0         0
 Chemicals                     74,724     692      150,288       404
  Basic chemicals               1,273     (D)          (D)       111
  Pharmaceuticals
  and medicines                71,584     (D)      122,060        17
  Other                         1,867     605          (D)       (D)
 Plastics and
 rubber products                5,084     260        3,811       246
 Nonmetallic
 mineral products               1,265     (D)          (D)       (D)
 Primary and
 fabricated metals              2,886     664        4,735        22
  Primary metals                2,185     (D)        4,614       (D)
  Fabricated metal products       702     (D)          121       (D)
 Machinery                      1,979      43          (D)       (D)
 Computers and
 electronic products           12,950      42        5,461         9
  Semiconductors and other
  electronic components           (D)       7          (D)         1
  Navigational, measuring,
  and other instruments           141     (D)          (D)         0
  Other                           (D)     (D)        1,000         8
 Electrical equipment,
 appliances,
 and components                 3,839      48        3,180         4
 Transportation equipment       1,980     276          (D)       166
  Motor vehicles, bodies
  and trailers, and parts       1,714     257          (D)       (D)
  Other                           266      19          656        22
 Other                            (D)     (D)          (D)       105
Wholesale trade                 4,607     113        2,009       184
 Motor vehicles and motor
 vehicle parts and supplies        19      (D)          (D)       18
 Electrical goods                 522      6            27        (D)
 Petroleum and
 petroleum products               (D)     (*)            3         3
 Other                            (D)     (D)          (D)       (D)
Retail trade                   14,670      37       10,687        69
 Food and beverage stores         (D)       0          (D)         1
 Other                            (D)     (D)          (D)        68
Information                    20,878     355       11,258       289
 Publishing industries         14,425      14        6,042        11
 Telecommunications               689     (*)          774       (D)
 Other                          5,764     340        4,442       (D)
Finance and insurance           8,490   1,466       44,420     2,609
 Depository credit
 intermediation (banking)          83     (D)           (D)        9
 Finance, except
 depository institutions        4,714    978        23,203       (D)
 Insurance carriers
 and related activities         3,693    (D)           (D)       (D)
Real estate and
rental and leasing             23,202   4,503       34,043     6,166
 Real estate                   12,098   4,267          (D)       (D)
 Rental and leasing
 (except real estate)          11,104     236          (D)       (D)
Professional, scientific,
and technical services          8,986     107       20,350        63
 Architectural, engineering,
 and related services             532      10          397         3
 Computer systems design
 and related services           1,323      26       10,696        18
 Management, scientific, and
 technical consulting             436       6          (D)         2
 Other                          6,695      65          (D)        40
Other industries               33,438   5,073       16,515     2,080
 Mining                        12,953   1,438          312       (D)
 Utilities                      7,004     794        2,674       455
 Construction                     383     217          274        10
 Transportation
 and warehousing                3,603     146        1,954        49
 Administration, support,
 and waste management           2,595      99        2,753        18
 Health care and
 social assistance              1,254       5        1,794        (D)
 Accommodation and
 food services                    797      13        1,613        (D)
 Other                          4,848   2,360        5,140     1,484

                                        Current employment
                                   (thousands of employees)(2)
                                 Current employment
                                (thousands of employees) (3)
                                     2014             2015

                                       Of which:          Of which:
                               Total  greenfield  Total  greenfield
                                (5)       (6)      (7)       (8)

     All industries           734.0      14.7     422.2      4.3
Manufacturing                 113.5       8.3     139.5      2.1
 Food                          16.7       1.3      10.2      0.2
 Beverages and
 tobacco products                 I       0.0       1.1      0.0
 Paper                          4.3       0.2       2.0      (*)
 Petroleum and
 coal products                  0.0       0.0       0.0      0.0
 Chemicals                     16.3       0.3      29.7      0.1
  Basic chemicals               1.5       (*)         I      0.1
  Pharmaceuticals
  and medicines                12.5       (*)      16.5        0
  Other                         2.3       0.2         I      (*)
 Plastics and
 rubber products                6.2       0.2      11.2      0.1
 Nonmetallic
 mineral products               3.0       (D)         G      (*)
 Primary and
 fabricated metals              5.9       0.6      16.4      0.4
  Primary metals                1.3       0.2      15.6      (*)
  Fabricated metal products     4.6       0.3       0.8      0.4
 Machinery                      4.8       (*)         I      (D)
 Computers and
 electronic products           11.8       0.1       7.3      (*)
  Semiconductors and other
  electronic components         6.2       (*)       3.0      0.0
  Navigational, measuring,
  and other instruments         0.3       (*)         G      0.0
  Other                         5.2       0.1         H        0
 Electrical equipment,
 appliances,
 and components                 4.9       0.2         G      (*)
 Transportation equipment      21.0       3.7      10.0      0.6
  Motor vehicles, bodies
  and trailers, and parts      19.8       3.5         I      (D)
  Other                         1.2       0.2         G      (D)
 Other                            J       (D)         K      0.3
Wholesale trade                 8.4       0.4       4.1      0.4
 Motor vehicles and motor
 vehicle parts and supplies     0.1         0       1.2      0.1
 Electrical goods               0.6         0       (*)      0.0
 Petroleum and
 petroleum products             0.4         0       (*)        0
 Other                          7.3       0.3       2.8      0.3
Retail trade                  293.0       0.6      72.0      (*)
 Food and beverage stores         K       0.0         G      0.0
 Other                            M       0.6         L      (*)
Information                    18.6       0.2      10.2      0.1
 Publishing industries         11.4       0.0       2.9      0.0
 Telecommunications             1.3       0.0       0.9      0.0
 Other                          5.9       0.2       6.3      0.1
Finance and insurance           9.9       0.3      13.4      0.5
 Depository credit
 intermediation (banking)       0.2       0.2         H      (D)
 Finance, except
 depository institutions        2.5       (*)         G      (D)
 Insurance carriers
 and related activities         7.2         0       8.7      0.5
Real estate and
rental and leasing              8.4       0.6       4.1      0.1
 Real estate                    0.8       (D)       2.3      0.1
 Rental and leasing
 (except real estate)           7.6       (D)       1.8      (*)
Professional, scientific,
and technical services         24.6       0.3      27.4      0.2
 Architectural, engineering,
 and related services           1.4       0.0       2.0        0
 Computer systems design
 and related services           4.4       0.1      16.5      0.0
 Management, scientific, and
 technical consulting           2.2       0.0       1.6      (*)
 Other                         16.5       0.2       7.2      0.2
Other industries              257.7       4.1     151.7      0.8
 Mining                         2.0       0.4       0.4        0
 Utilities                      2.5       (D)       4.6      0.0
 Construction                   1.0       (*)       1.4      0.0
 Transportation
 and warehousing               12.9       0.1      13.0      0.4
 Administration, support,
 and waste management             M       (D)      79.3      0.2
 Health care and
 social assistance             27.4       (D)      36.8      0.0
 Accommodation and
 food services                  7.7       0.1       8.3      (*)
 Other                            K       (D)       8.1      0.1

(*) A nonzero value between -$500,000 and $500,000 or between zero and
50 employees
(D) Suppressed to avoid disclosure of data on individual companies.
(1.) First-year expenditures include expenditures in the year in which
the transaction occurred.
(2.) Current employment includes all the full-time or part-time
employees on the payroll of the acquired, established, or new
facilities of expanded affiliates at the time the transactions occurred
or the investments were initiated. Statistics exclude contract workers
and other workers not carried on payroll of the U.S. business
enterprise.
Note. The following ranges are given for total employment that is
suppressed: A-1 to 499; F-500 to 999; G-1,000 to 2,499; H-2,500 to
4,999; 1-5,000 to 9,999; J-10,000 to 24,999; K-25,000 to 49,999;
L-50,000 to 99,999; M-100,000 or more.

Table 2. First-Year Expenditures and Current Employment Associated With
Investments Initiated in 2014 and 2015, Country of Ultimate Beneficial
Owner by Type of Investment (1)

                                    First -year expenditures
                                    (millions of dollars (12)
                                    2014                 2015

                                      Of which:           Of which:
                             Total   greenfield   Total  greenfield
                              (1)        (2)       (3)        (4)

   All countries            250,581    14,782    420,691    12,635
Canada                       31,331     3,477     84,938     1,246
Europe                      144,736     3,815    284,807     5,533
 Belgium                        658        48        (D)         6
 Denmark                        784        21        154         1
 Finland                        260       (D)          9       (D)
 France                       5,658       342     12,744        92
 Germany                     28,515       456     47,000     1,478
 Ireland                     43,563        72    176,480        80
 Italy                          600       134        (D)       (D)
 Netherlands                  8,739       397      6,515       (D)
 Spain                        1,200        46      1,104        14
 Sweden                       1,646         3      1,296         5
 Switzerland                 16,189       461      3,975       136
 United Kingdom              21,344     1,284     19,796       251
 Other                       15,579       (D)      3,107     2,251
Latin America and
Other Western
Hemisphere                   12,579       791      3,298       271
 South and Central America    1,832       116        241       120
  Brazil                        (D)       (D)        117       (D)
  Mexico                        982       (D)         67        66
  Venezuela                     (*)       (*)        (*)       (*)
  Other                         (D)       (D)         57       (D)
 Other Western Hemisphere    10,747       674      3,056       151
  Bermuda                     3,516        76        (D)       (D)
  United Kingdom Islands,
  Caribbean (4)               6,858       594      1,840        43
  Other                         373         4        (D)       (D)
Africa                           95       (D)        (D)         3
 South Africa                   (D)       (D)        (D)       (D)
 Other                          (D)       (D)        (D)       (D)
Middle East                   1,910       264      5,858       (D)
 Israel                         739       (D)        (D)        13
 Saudi Arabia                   209       (D)         54       (D)
 United Arab Emirates           407       (*)        (D)         1
 Other                          556       (D)        708       (D)
Asia and Pacific             53,685     5,947     40,405     5,432
 Australia                    2,710        49        (D)       (D)
 China                        3,476     1,268      7,038     1,193
 Hong Kong                    6,921        44      1,162       (D)
 India                          468       390        585        17
 Japan                       29,343     2,701     26,923     3,117
 Korea, Republic of           2,399     1,371        481         8
 Singapore                    8,110        86      2,224       708
 Taiwan                          32        (D)        61         2
 Other                          228        (D)        (D)       (D)
United States (5)             6,244        (D)        (D)       (D)

                              Current employment
                             (thousands of employees) (3)
                                  2014             2015

                                    Of which:          Of which:
                            Total  greenfield  Total  greenfield
                             (5)       (6)      (7)       (8)

   All countries            734.0     14.7     422.2      4.3
Canada                       86.4      3.1     110.0      0.8
Europe                      350.3      5.9     251.6      2.0
 Belgium                        F      (D)         H        0
 Denmark                        G      (D)       0.6      0.0
 Finland                        F      (D)       (*)      (*)
 France                       6.6      0.4      95.9      0.2
 Germany                     13.4      0.9      24.8      0.2
 Ireland                        J      (D)      46.1      (*)
 Italy                          H      (D)       6.5      0.1
 Netherlands                  8.0      (D)       6.9      (*)
 Spain                          G      (D)       1.8      0.0
 Sweden                         H      0.0       1.2      (*)
 Switzerland                 19.9      1.2      40.5      (D)
 United Kingdom              35.0       (D)     20.6      0.4
 Other                          M       (D)        G       (D)
Latin America and
Other Western
Hemisphere                   63.7      0.3       8.5      0.5
 South and Central America    7.1      0.1       0.5      0.2
  Brazil                        0      (*)       0.4      0.1
  Mexico                        I      (*)       0.1      0.1
  Venezuela                   0.0      0.0       0.0      0.0
  Other                         G      0.1       0.1        0
 Other Western Hemisphere    56.6      0.2       8.0      0.4
  Bermuda                       J       (D)      0.2       (*)
  United Kingdom Islands,
  Caribbean (4)              42.3      (D)       7.7      0.2
  Other                         G      0.0       0.1      0.1
Africa                        0.5      0.0         G      0.0
 South Africa                   0      0.0       0.2      0.0
 Other                        0.5      0.0         G      0.0
Middle East                   2.3      0.2      10.9      (*)
 Israel                       0.9      (*)       0.5        0
 Saudi Arabia                 0.3      0.1       0.2      0.0
 United Arab Emirates         0.2      0.0         I      0.0
 Other                        0.9      0.0         H      0.0
Asia and Pacific                L      5.3      37.2      0.9
 Australia                    3.7      (*)       1.1      0.0
 China                        3.5      1.6      14.7      0.1
 Hong Kong                   16.0      (*)       0.3      0.1
 India                        1.4      0.9       1.6        0
 Japan                       13.6      1.6      15.0      0.5
 Korea, Republic of           1.8      1.0       1.8        0
 Singapore                   11.1      0.2       2.5        0
 Taiwan                       (*)      (*)       0.1        0
 Other                          H      (*)       0.1      (*)
United States (5)               M      (*)         G      0.0

(*) A nonzero value between -$500,000 and $500,000 or between zero and
50 employees
D Suppressed to avoid the disclosure of the data of 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
an affiliated and thus ultimately derives the benefits and assumes the
risks from owning or controlling an affiliate.
(2.)  First-year expenditures include expenditures in the year in which
the transaction occurred.
(3.)  Current employment includes all the full-time or part-time
employees on payroll of the acquired, established, or new facilities of
expanded affiliates at the time the transactions occurred or the
investments were initiated. Statistics exclude contract workers and
other workers not carried on the payroll of the U.S. business
enterprise.
(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 UBO for businesses newly
acquired, established, or expanded by foreign investors that are
ultimately owned by persons located in the United States.
Note. The following ranges are given for total employment that is
suppressed: A-1 to 499; F-500 to 999; G-1,000 to 2,499; H-2,500 to
4,999; 1-5,000 to 9,999; J-10,000 to 24,999; K-25,000 to 49,999;
L-50,000 to 99,999; M-100,000 or more.

Table 3. First-Year Expenditures and Current Employment Associated with
Investments Initiated in 2014 and 2015, State by Type of Investment (1)

                        First-year expenditures.
                       (millions of dollars) (2)
                              2014                 2015

                                 Of which:            Of which:
                       Total    greenfield   Total   greenfield
                        (1)         (2)       (3)        (4)

  Total                250,581    14,782    420,691     12,635
New England
 Connecticut             1,501       (D)        727         (D)
 Maine                     (D)         0        115          0
 Massachusetts           7,723     1,306      6,821         (D)
 New Hampshire             (D)         0         (D)         0
 Rhode Island              805        (D)         0          0
 Vermont                   (D)         0         (D)         0
Mideast
 Delaware                1,680     1,048        842        493
 District of Columbia      911       216         (D)        (D)
 Maryland                3,136       135      1,166         (D)
 New Jersey             17,887       230     18,274         (D)
 Newark                 36,073       (D)     21,386      3,963
 Pennsylvania            7,635        26      7,317      1,919
Great Lakes
 Illinois               23,350       266     22,697         34
 ndiana                  1,701       171      1,263        (D)
 Michigan                2,320       161        (D)        (D)
 Ohio                    2,194       339      7,742         58
 Wisconsin               2,379        14      1,850        (D)
Plains
 Iowa                      (D)       (D)        (D)        (*)
 Kansas                    287       (D)        (D)          5
 Minnesota               2,659       (D)        (D)        (D)
 Missouri                2,317       196        (D)        (D)
 Nebraska                  (D)       (D)        (D)          0
 North Dakota              308       (D)         36         13
 South Dakota              (D)         0        (D)          0
Southeast
 Alabama                   683       (D)      7,554         27
 Arkansas                   49       (D)        171        (D)
 Florida                 3,924       132      5,713        (D)
 Georgia                 1,747       825      1,025        198
 Kentucky                  (D)       (D)        (D)        (D)
 Louisiana                 645       448      1,035        (D)
 Mississippi               204       (D)         37         37
 North Carolina          3,771       130     23,151         68
 South Carolina            597        34        162         60
 Tennessee                 497       119      1,200        (D)
 Virginia                3,554       (D)      1,046        (*)
 West Virginia               5         0        (D)          0
Southwest
 Arizona                   (D)       (D)        (D)        (D)
 New Mexico                 98       (D)          0          0
 Oklahoma                1,968       (D)        (D)          0
 Texas                  20,314     2,048     29,547        581
Rocky Mountains
 Colorado                3,532        38        314        142
 Idaho                       3         3          0          0
 Montana                   (D)         0          0          0
 Utah                      (D)       (D)         92          0
 Wyoming                    20       (D)        (D)          0
Far West
 Alaska                    (D)         0        (D)          0
 California             49,700     2,810    119,019      1,543
 Hawaii                    261       187        510        (D)
 Nevada                    243        50        (D)        (D)
 Oregon                    656       (D)      1,016        (D)
 Washington             16,535       236        964        212
Puerto Rico                (*)       (*)        (D)        (D)
Other U.S. areas (4)         0         0          0          0
Unspecified (5)          1,041       677        570        433

                              Current employment
                         (thousands of employees) (5)
                             2014             2015

                               Of which:          Of which:
                       Total  greenfield  Total  greenfield
                        (5)       (6)      (7)       (8)

  Total                734.0      14.7    422.2      4.3
New England
 Connecticut             5.0       (*)      0.6      (*)
 Maine                   0.2       0.0      1.4      0.0
 Massachusetts           5.9       0.1      7.3      0.1
 New Hampshire           0.7       0.0      0.1      0.0
 Rhode Island            1.7       0.3      0.0      0.0
 Vermont                   H       0.0               0.0
Mideast
 Delaware                0.4       (*)      0.1      (*)
 District of Columbia    0.3       (*)      0.3      0.0
 Maryland                8.8       0.3      3.1      (*)
 New Jersey             12.3       0.2     11.1      0.0
 Newark                 15.6       2.6      9.6      0.2
 Pennsylvania            9.5       0.1      4.4      0.1
Great Lakes
 Illinois                  M       0.7        J      0.0
 ndiana                  3.9       0.3        I      0.1
 Michigan               16.5       0.7     10.2      (*)
 Ohio                    5.9       1.5      6.2      0.2
 Wisconsin               1.6       (*)      2.3      0.0
Plains
 Iowa                    0.3       0.1               (*)
 Kansas                  0.3       0.0      0.1      (*)
 Minnesota               8.9       0.1        K      0.2
 Missouri                4.4       0.8      6.3      (D)
 Nebraska                (*)       (*)      0.1      0.0
 North Dakota            0.4       0.0      0.2      0.1
 South Dakota            (*)       0.0      (*)      0.0
Southeast
 Alabama                 5.7       (D)      8.8      0.0
 Arkansas                0.1       (*)      0.9      0.0
 Florida                   M       (D)     17.6      (D)
 Georgia                11.2       1.5      5.0      (*)
 Kentucky                1.9       (D)      0.7      0.0
 Louisiana               1.7       0.2      3.2      (*)
 Mississippi             0.3       0.1      0.2      0.2
 North Carolina          8.6       0.3     31.6      0.5
 South Carolina          2.1       (D)      0.2      (*)
 Tennessee               2.6       1.3      1.4      (D)
 Virginia                  J       0.1      2.9      (*)
 West Virginia           0.1       0.0      0.0      0.0
Southwest
 Arizona                 2.9       0.1        L      (*)
 New Mexico              0.2       0.2      0.0      0.0
 Oklahoma                1.5       (*)      0.2      0.0
 Texas                  29.0       0.6     20.2      0.2
Rocky Mountains
 Colorado                7.1       (*)      0.6      0.2
 Idaho                   (*)       (*)      0.0      0.0
 Montana                   F       0.0      0.0      0.0
 Utah                    0.6       (*)      0.5      0.0
 Wyoming                 (*)       (*)      1.3      0.0
Far West
 Alaska                  0.3       0.0        G      0.0
 California             77.1       0.8    107.3      0.5
 Hawaii                  0.0       0.0      (*)      (*)
 Nevada                  1.8       (D)        H      0.2
 Oregon                  1.6       0.1        K      (*)
 Washington             16.9       0.1      2.4      0.2
Puerto Rico              0.3       0.3      (*)      (*)
Other U.S. areas (4)     0.0       0.0      0.0      0.0
Unspecified (5)          2.8       0.0      1.0      0.0

(*) A nonzero value between -$500,000 and $500,000 or between zero and
50 employees ments were initiated. Statistics exclude contract workers
and other workers not carried on payroll of the
(D) Suppressed to avoid the disclosure of the data of individual
companies. U.S. business enterprise.
(1.) If the U.S. business enterprise operates in more than one state,
it is the state where the largest 4. "Other U.S. areas" consists of the
U.S. Virgin Islands, Guam, American Samoa, and all other number of
employees are based; if there are no employees, it is the state of
incorporation of the U.S. outlying U.S. areas. business enterprise. 5.
For U.S. business enterprises with transaction costs below $3 million
information on the
(2.) First-year expenditures include expenditures in the year in which
the transaction occurred. state of location is not collected.
(3.) Current employment includes the all full-time or part-time
employees on payroll of the acquired, NOTE. The following ranges are
given for total employment that is suppressed: A-1 to 499; F-500 to
established, or new facilities of expanded affiliates at the time the
transactions occurred or the invest- 999; G-1,000 to 2,499; H-2,500 to
4,999; I-5,000 to 9,999; J-10,000 to 24,999; K-25,000 to 49,999;
L-50,000 to 99,999; M-100,000 or more.

Revisions to 2014 Expenditures for New Foreign Direct Investment in the
United States [Millions of dollars]

                                  Preliminary  Revised
      First-year expenditures
Total                                 241,261  250,581
 U.S. businesses acquired             224,688  235,799
 U.S. businesses established           13,822   12,473
 U.S. businesses expanded               2,751    2,309
      Planned total expenditures
Total                                 263,858  275,767
 U.S. businesses acquired             224,688  235,799
 U.S. businesses established           31,345   33,516
 U.S. businesses expanded               7,825    6,453