Annual revision of the U.S. international transactions accounts.

Hoang, Mai-Chi ; Whitaker, Erin M.

IN JUNE, the Bureau of Economic Analysis (BEA) released annual revisions of the U.S international transactions accounts (ITAs) and the U.S. international investment position (IIP) accounts. (1) Through annual revisions, BEA introduces new definitions and classifications, newly available and more complete source data, new and improved methodologies, and new and updated presentations. Together, these changes improve the reliability and consistency of the statistics and address important new developments in the U.S. and international economies.

In this annual revision, statistics on U.S. international transactions for 1999-2010 were revised; summary information on these revisions is presented in appendix A. Revised statistics for the detailed components of the ITAs are shown in table 1 in the article "U.S. International Transactions: First Quarter of 2011" in this issue.

This annual revision introduces several changes in definitions and classifications in the ITAs. These changes are part of a multiyear effort to modernize and enhance BEA's international economic accounts in order to align them with international standards. For additional information on these standards, see the box "Updated International Statistical Standards."

For this annual revision, changes in definitions and classifications related to the implementation of international standards include the following:

* Reclassification within services of cruise fares from passenger fares to travel, beginning with statistics for 1999.

* Reclassification of postal services from U.S. government miscellaneous services to "other" transportation services, beginning with statistics for 1999.

* Reclassification of fees for the rights to distribute film and television recordings from "other" private services to royalties and license fees, beginning with statistics for 1999.

* Exclusion of expenditures of foreign nationals working at international organizations in the United States from "other" private services and inclusion of their compensation in compensation of employees, beginning with statistics for 1999.

* Change in the recording of U.S. government income on holdings and allocations of special drawing rights from a net basis to a gross basis, beginning with statistics for 2003.

BEA expects to implement additional changes recommended by international statistical standards in future annual revisions. BEA has adopted a phased approach to implementation, taking into account factors such as source data availability, resource requirements, and consistency with BEA's national, industry, and regional economic accounts. Implementation depends not only on the economic and statistical significance of the changes but also on factors such as information technology requirements, estimation needs, and possible effects on publication tables and data dissemination. (2)

Other significant changes introduced in this annual revision include the following:

* Exports and imports of goods for 1999-2010 were revised to introduce seasonal adjustment to the balance-of-payments adjustments. (3)

* Exports and imports of goods for 1999-2009 were revised to update and expand the coverage of balance-of-payments adjustments for low-value transactions. (4)

* Components of goods imports for 1999-2010 were revised to reallocate portions of the adjustments for low-value imports and for inland freight charges in Canada and Mexico from "other" goods to the relevant end-use commodity categories.

* Imports of goods and services for 2004-2010 were revised to incorporate an improved methodology for estimating expenditures of U.S. air carriers in foreign ports.

* Exports of services and income payments for 1999-2010 were revised to incorporate an improved methodology for measuring the compensation and U.S. expenditures of foreign residents working in the United States for less than one year (short-term workers).

* Exports and imports of services for 2007-2010 were revised to incorporate new and updated source data from the initial results of BEA's 2009 Benchmark Survey of Financial Services Transactions Between U.S. Financial Services Providers and Foreign Persons and from BEA's other surveys of international services transactions.

* Net unilateral current transfers for 2000-2010 were revised to incorporate new and updated source data on U.S. government grants from the U.S. Department of Defense and the Millennium Challenge Corporation. (5) The revisions for 2008-2010 also reflect new and updated source data from BEA's surveys of institutional remittances and international insurance transactions. (6)

* Direct investment financial flows and related income receipts and payments for 2007-2010 were revised to incorporate new and updated source data from the results of BEA's 2007 Benchmark Survey of Foreign Direct Investment in the United States. The revisions for 2008-2010 also reflect the incorporation of new and updated source data from BEA's quarterly and annual surveys of U.S. direct investment abroad and foreign direct investment in the United States.

* Foreign securities positions, financial flows, interest receipts for foreign bonds, and dividend receipts for foreign stocks for 2008-2010 were revised to incorporate new and updated source data from the results of the U.S. Treasury Department's annual survey of securities claims--U.S. Ownership of Foreign Securities as of December 2009--and other updated source data.

* U.S. securities positions, financial flows, interest payments for U.S. bonds, and dividend payments for U.S. stocks for 2008-2010 were revised to incorporate new and updated source data from the results of the U.S. Treasury Department's annual survey of securities liabilities--Foreign-Residents' Holdings of U.S. Securities as of June 2010--and other updated source data.

Despite several relatively large changes, this annual revision has not significantly affected the overall picture of the current-account balance. The current-account deficit for most years was revised down, but the revised statistics show nearly the same widening of the deficit through 2006, declines for 2007-2009, and a pickup for 2010 (chart 1).

In contrast, this annual revision has altered the pattern of net financial flows. As a result of significant revisions to net financial inflows, the direction of change from 2007 to 2008 was reversed: in the revised statistics, net financial inflows increased, but in the previously published statistics, they decreased (chart 2).

The combined revisions to the current and financial accounts resulted in a particularly significant revision to the statistical discrepancy--net errors and omissions in recorded transactions--for 2008, and the statistical discrepancy for 2009 and 2010 remains large (table A). BEA is continuing its efforts to improve the coverage of international transactions and to reduce the size of the statistical discrepancy.

This article is divided into two major sections. The first section summarizes the impact of the revisions on the statistics from the current and financial accounts, including the statistical discrepancy. (Net capital-account transactions were virtually unrevised for 2010 and were unrevised for all other years.) The second section discusses the major changes in definitions, classifications, methodologies, and source data that are introduced in this annual revision.

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Impact of the Revisions

The revisions to the statistics resulted from the incorporation of new and updated source data, new and improved methodologies, and reclassifications of certain transactions within services. This annual revision is also the first time that statistics on financial derivatives for the fourth quarter of 2010 are available, providing the first complete picture of transactions for 2010.

Current-account highlights

Current-account statistics for 1999-2010 were revised (table A). The current-account deficit for 1999, 2008, and 2010 was revised up, and for all other years, it was revised down; the largest revisions were for 2007 and 2008. The revised statistics show the same trend in the current-account deficit as the previously published statistics. However, in the revised statistics, the decreases in the deficit for 2007 and 2009 are larger, and the decline for 2008 is smaller.

In addition to the sources of revisions noted above for the annual statistics, the quarterly statistics incorporated revised seasonal factors for exports and imports of goods and services and for receipts and payments of income. This annual revision also introduces seasonal adjustment for several balance-of-payments adjustments.

In general, the revisions to the quarterly statistics on goods, services, income, and transfers did not alter the direction of the quarter-to-quarter changes in the current-account deficit (chart 3). The exceptions were the second quarter of 2008 and the third quarter of 2010; for both quarters, the current-account deficit decreased in the revised statistics but increased in the previously published statistics.

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For most quarters of 1999-2006, the revisions did not significantly affect the magnitude of the quarter-to-quarter changes in the current-account deficit. However, the changes in the current-account deficit for several quarters of 2007-2010 were significantly revised; the largest revisions were for the first and second quarters of 2010.

Goods and services. The deficit on goods and services for 1999-2008 was revised down, and for 2009 and 2010, it was revised up; the largest revisions were for 2006 and 2009. In general, the revised statistics show the same trend as the previously published statistics. The exception was from 2007 to 2008 when the deficit on goods and services increased in the revised statistics but decreased in the previously published statistics.

The deficit on goods for 1999-2010 was revised down; the largest revisions were for 2005-2008. The revisions to goods exports and imports for 1999-2009 reflect the incorporation of the adjustments for low-value transactions (table B). The revisions to goods imports for 2004-2010 also reflect downward revisions to the adjustment for fuel purchases by U.S. air carriers in foreign ports.

In addition, in imports of goods, imports of several end-use commodity categories were revised. With this annual revision, beginning with statistics for 1999, portions of the adjustments for low-value imports and for inland freight charges in Canada and Mexico (charges for transporting goods from the point of origin in Canada or Mexico to the U.S. border) were applied to the relevant end-use commodity categories rather than to the residual category for imports of "other" goods. Reallocations of these adjustments resulted in downward revisions to imports of "other" goods and in offsetting upward revisions to imports of several end-use commodity categories; the reallocations did not affect total goods imports.

The surplus on services for 1999-2007 was revised up, and for 2008-2010, it was revised down; the largest revisions were for 2008-2010. Services exports for all years were revised up, mostly reflecting revisions to "other" private services and royalties and license fees. Services imports for 2004-2010 were revised up, primarily as a result of revisions to "other" transportation services and "other" private services. For both exports and imports, revisions to several services components for all years also reflect the reclassifications of certain transactions--cruise fares, postal services, and fees for the rights to distribute film and television recordings--within services; these reclassifications did not affect total services exports or imports.

Income. The surplus on income for 1999-2006 and 2008 was revised down, and for 2007, 2009, and 2010, it was revised up; the largest revisions were for 2008 and 2009. Income receipts for all years were revised up. Significant revisions for 2008 and 2009 were mostly due to upward revisions to direct investment income receipts. Revisions for all years also reflect upward revisions to compensation of employees. Income payments for 1999-2009 were revised up, and for 2010, they were revised down. The largest revision was for 2008, mainly resulting from an upward revision to direct investment income payments. The downward revision to income payments for 2010 was attributable to a downward revision to U.S. government payments. Revisions to income payments for all years also reflect revisions to compensation of employees.

Transfers. Net outflows of unilateral current transfers for 2000-2010 were revised. Revisions for all years reflect revisions to U.S. government grants. The revisions for 2008-2010 also reflect revisions to private remittances and other transfers.

Financial-account highlights

Financial-account statistics for 2007-2010 were revised (table A). Net financial inflows, which include financial derivatives, were revised down $20.9 billion for 2007 and were revised up $152.7 billion for 2008, $29.8 billion for 2009, and $19.0 billion for 2010. Revisions to net financial inflows represent the combined effects of revisions to transactions in U.S.-owned assets abroad, in foreign-owned assets in the United States, and in financial derivatives (which are recorded on a net basis in the ITAs). These revisions reflect the incorporation of new and updated source data from the results of BENs 2007 Benchmark Survey of Foreign Direct Investment in the United States, BEA's quarterly and annual surveys of direct investment, the Treasury International Capital (TIC) reporting system, and the U.S. Treasury Department's annual surveys of securities--U.S. Ownership of Foreign Securities as of December 2009 and Foreign-Residents' Holdings of U.S. Securities as of June 2010.

For 2007, transactions in U.S.-owned assets abroad were revised down less than transactions in foreign-owned assets in the United States, and as a result, net financial inflows were revised down. In contrast, for 2008, transactions in U.S.-owned assets abroad were revised down considerably more than transactions in foreign-owned assets in the United States, resulting in a relatively large upward revision to net financial inflows. For 2009 and 2010, transactions in U.S.-owned assets abroad were revised down, transactions in foreign-owned assets in the United States were revised up, and transactions in financial derivatives were revised down; for both years, the revisions resulted in modest upward revisions to net financial inflows. (7)

Generally, the revisions did not change the quarterly trend in transactions for 2007 (chart 4). However, the decrease in net financial inflows from the first quarter to the second quarter of 2007 is now larger as a result of a first-quarter upward revision and a second-quarter downward revision to net financial inflows, and the increase from the third quarter to the fourth quarter of 2007 is now smaller as a result of a third-quarter upward revision and a fourth-quarter downward revision.

For 2008, net financial inflows were revised up for the first, third, and fourth quarters and were nearly unrevised for the second quarter; the upward revision for the fourth quarter was significant, as transactions in U.S-owned assets abroad were revised up and transactions in foreign-owned assets in the United States were revised down. The resulting quarterly trend in transactions sharpened the decrease from the first quarter to the second quarter. These revisions also altered the trend for 2008 from a decline to a rise in the second half of the year; the $152.7 billion upward revision for the year reflects this shift.

For 2009, the revisions to net financial inflows for the quarters were partly offsetting; net financial inflows were revised up for the first quarter, were revised down for the second and third quarters, and were revised up more significantly for the fourth quarter. These revisions also altered the quarter-to-quarter changes for 2009. They resulted in a decrease to net financial inflows for the second quarter; in the previously published statistics, these inflows increased. In addition, the increase for the third quarter is now smaller, and the increase for the fourth quarter is now considerably larger.

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For 2010, the revisions did not notably change the quarterly trend in transactions. However, the $27.4 billion upward revision to net financial inflows for the third quarter more than accounted for the $19.0 billion upward revision for the year.

U.S.-owned assets abroad

Transactions in U.S.-owned assets abroad excluding financial derivatives represent the net acquisition of foreign financial assets by U.S. residents. These transactions, in which net acquisitions are recorded as outflows with a minus sign, were revised down (became less negative) $22.1 billion for 2007, $176.0 billion for 2008, $1.1 billion for 2009, and $19.5 billion for 2010 (table C). The downward revision for 2008 was particularly noteworthy not only because of its size but also because it further increased net inflows for 2008, the only year in several decades without net acquisitions of foreign financial assets.

U.S. direct investment abroad. The revisions largely resulted from updated source data from BEA's quarterly and annual surveys of direct investment. The statistics were virtually unrevised for 2007, were revised down $22.1 billion for 2008, and were revised up $34.9 billion for 2009 and $5.7 billion for 2010. The downward revision for 2008 reflects downward revisions to both U.S. equity investment abroad and reinvested earnings that were partly offset by an upward revision to intercompany debt investment. The upward revision for 2009 reflects upward revisions to both intercompany debt investment and equity investment that were partly offset by a downward revision to reinvested earnings. The upward revision for 2010 largely reflects an upward revision to reinvested earnings.

Foreign securities. For 2008, net sales of foreign securities were revised down $0.6 billion. For 2009, net purchases of foreign securities were revised up $18.6 billion, reflecting the incorporation of the results of the U.S. Treasury Department's December 2009 survey and other updated source data. For 2010, net purchases of foreign securities were revised down $15.2 billion.

Nonbank claims. Net downward revisions for 2007-2010 reflect updated data from the TIC reporting system and other sources and from revised data on the intercompany debt claims of financial intermediaries from BEA's surveys of direct investment, particularly the 2007 benchmark survey. (8) The revisions of $22.2 billion for 2007 and $20.4 billion for 2009 were mainly due to updated data from the 2007 benchmark survey.

Bank claims. Net downward revisions of $119.5 billion for 2008, $34.2 billion for 2009, and $4.1 billion for 2010 were largely accounted for by updated data from the TIC reporting system. The revision for 2008 also partly reflects updated data from BEA's direct investment surveys, particularly the 2007 benchmark survey. (9)

Foreign-owned assets in the United States

Transactions in foreign-owned assets in the United States excluding financial derivatives represent the net acquisition of U.S. financial assets by foreign residents. In these transactions, net acquisitions are recorded as inflows with a positive sign. Net acquisitions of U.S. assets by foreign residents reached a historic high in 2007 in the previously published statistics, but the downward revision of $43.0 billion for 2007 shifted the peak to 2006 in the revised statistics. A downward revision of $23.3 billion for 2008 and an upward revision of $30.1 billion for 2009 narrowed the year-to-year change. Financial inflows were virtually unrevised for 2010 as revisions to the components were almost entirely offsetting.

Foreign direct investment in the United States. The revisions largely resulted from updated data from BEA's 2007 benchmark survey and BENs other direct investment surveys. Statistics were revised down $50.0 billion for 2007 and $18.2 billion for 2008 and were revised up $23.9 billion for 2009 and $41.8 billion for 2010. The downward revision for 2007 reflects a downward revision to intercompany debt investment; downward revisions to both equity investment and reinvested earnings also contributed. The downward revision for 2008 reflects downward revisions to reinvested earnings, equity investment, and intercompany debt investment. The upward revision for 2009 reflects an upward revision to equity investment that was partly offset by downward revisions to both reinvested earnings and intercompany debt. The upward revision for 2010 mostly reflects an upward revision to equity investment.

Official and private transactions in U.S. Treasury securities. Foreign official net purchases of U.S. Treasury securities for 2007 and 2008 were unrevised, and for 2009 and 2010, they were revised up. Foreign private net purchases for 2008 were revised up slightly, and for 2009 and 2010, they were revised down. The $37.7 billion downward revision to private net purchases of U.S. Treasury securities for 2009 partly offset other sizable upward revisions to transactions in foreign-owned assets in the United States. The revisions for 2008 reflect updated data from the TIC reporting system; the revisions for 2009 and 2010 were largely due to updated data from the U.S. Treasury Department's June 2010 survey.

Official transactions in other U.S. government securities. Official transactions in other (U.S. government-sponsored agency) securities were revised down $12.5 billion for 2009 and $3.8 billion for 2010. These revisions resulted from the incorporation of updated data from the U.S. Treasury Department's June 2010 survey; for 2010, revisions due to updated data from the June 2010 survey were partly offset by revisions due to updated data from the TIC reporting system.

Other foreign official assets and private transactions in U.S. securities other than U.S. Treasury securities. Net purchases of other foreign official assets (U.S. corporate stocks and bonds) were revised up $31.8 billion for 2009 and $32.0 billion for 2010. Private net purchases of U.S. securities other than U.S. Treasury securities were revised up $3.9 billion for 2009 and were revised down $55.0 billion for 2010; for 2010, an upward revision to private net sales of agency securities was partly offset by an upward revision to private net purchases of U.S. corporate stocks and bonds. These revisions resulted from the incorporation of updated source data from both the U.S. Treasury Department's June 2010 survey and the TIC reporting system.

Nonbank liabilities. For 2007, nonbank liabilities were revised up $0.9 billion; the revision was due to updated data from the Bank for International Settlements reporting system that were mostly offset by updated data from BEA's 2007 benchmark survey. Upward revisions of $5.0 billion for 2008, $13.9 billion for 2009, and $27.5 billion for 2010 reflect the incorporation of updated data from the TIC reporting system, BEA's 2007 benchmark survey, BEA's other direct investment surveys, and other updated source data. For 2008 and 2010, revisions due to other source data were partly offset by revisions due to source data from the 2007 benchmark survey and other BEA direct investment surveys; for 2009, the upward revision mostly reflects revisions due to other source data.

Bank liabilities. Bank liabilities were revised up $6.2 billion for 2007; the revision reflects updated data from BEA's 2007 benchmark survey. Bank liabilities were revised down $16.4 billion for 2008 and $4.1 billion for 2009; these revisions mainly reflect updated data from the TIC reporting system and BEA's other direct investment surveys, respectively. Bank liabilities were revised down $15.1 billion for 2010; the revision reflects updated data from the TIC reporting system that were partly offset by updated BEA survey data on direct investment.

Statistical discrepancy

In principle, the combined deficit (or surplus) on the current and capital accounts should equal net financial inflows (or outflows) in the financial account. In practice, however, they differ because of incomplete source data, gaps in coverage, timing differences, or other errors and omissions. The statistical discrepancy is defined as the sum of the balances on the current, capital, and financial accounts, with the sign reversed. (10)

The statistical discrepancy for 1999-2010 was revised. The revisions for 1999-2006 reflect revisions to the deficit on the current account only. For 2007, the statistical discrepancy was revised up (became more positive), primarily resulting from a downward revision to net financial inflows. For 2008, a large upward revision to net financial inflows was the main reason for the change in the sign of the statistical discrepancy in the revised statistics--the statistical discrepancy was revised to -$59.4 billion from the previously published $85.0 billion. For 2009 and 2010, the statistical discrepancy was revised down, largely as a result of significant upward revisions to net financial inflows for both years. Despite the downward revisions for 2009 and 2010, the statistical discrepancy remains relatively large. BEA continues to conduct research and work closely with its source data partners to address concerns about the size of the statistical discrepancy.

Changes in Definitions, Classifications, Methodologies, and Source Data

This section identifies the changes in definitions, classifications, methodologies, and source data introduced in this annual revision, describes the accounts and periods affected, and briefly discusses the rationale for the changes. Changes in definitions and classifications are discussed first, followed by statistical changes in methodologies and source data. Changes in definitions and classifications represent new views of the economic accounting concepts and principles that should be measured in the accounts. Statistical changes pro vide better statistical measures of specific concepts or principles.

Changes in definitions and classifications

For this annual revision, all the changes in definitions and classifications reflect new treatments of certain services and income transactions within the current account. These changes are designed to more closely align BENs statistics with international guidelines, (11)

This annual revision introduces new treatments of the following transactions within services: cruise fares, postal services, and fees for the rights to distribute film and television recordings.

In the previously published statistics, cruise fares were recorded in passenger fares along with other fares for passage aboard air and ocean carriers. Beginning with statistics for 1999, cruise fares were reclassified from passenger fares (table 1, lines 7 and 24) to travel (lines 6 and 23). (12) This reclassification follows the recommendation of international guidelines to classify cruise fares in the travel accounts because they cover onboard expenditures for goods and services similar to expenditures related to land travel, such as accommodations, meals, and entertainment.

In the previously published statistics, settlements between the U.S. Postal Service and foreign postal services for the delivery of letters, printed materials, and parcels were included in U.S. government miscellaneous services. Beginning with statistics for 1999, postal services transactions were reclassified from U.S. government miscellaneous services (lines 11 and 28) to "other" transportation services (lines 8 and 25). This reclassification follows the recommendations of the sixth edition of the International Monetary Fund's Balance of Payments and International Investment Position Manual to classify postal services in the transportation accounts and to classify government services transactions according to the type of service performed. (13)

In the previously published statistics, fees for the rights to distribute film and television recordings were included in "other" private services along with other audiovisual services, such as those related to the production of motion picture and radio and television programs. Beginning with statistics for 1999, the fees for the distribution rights related to film and television recordings were reclassified from "other" private services (lines 10 and 27) to royalties and license fees (lines 9 and 26). This reclassification aligns the treatment of these fees with international guidelines for the classification of transactions related to the rights to distribute intellectual property.

The reclassifications described above resulted in upward revisions for 1999-2010 to travel, "other" transportation services, and royalties and license fees and in offsetting downward revisions for 1999-2010 to passenger fares, U.S. government miscellaneous services, and "other" private services, respectively. These reclassifications did not affect total services exports or imports (tables D and E).

In addition to these reclassifications, this year's annual revision also introduces a new treatment of foreign nationals who live in the United States and are employed by international organizations located in the United States. In the previously published statistics, these foreign nationals were treated as foreign residents; therefore, their expenditures on goods and services in the United States were included in exports of services.14 However, according to international guidelines, these foreign nationals should be treated as U.S. residents. As a result, their expenditures on goods and services in the United States should be excluded from the ITAs because these expenditures represent transactions between U.S. residents. In addition, because of their status as U.S. residents for statistical purposes, the compensation that these foreign nationals receive from international organizations should be included in U.S. income receipts from abroad because international organizations are considered nonresident entities regardless of their location. To align the U.S. accounts with these guidelines, beginning with statistics for 1999, the U.S. expenditures of these foreign nationals were excluded from "other" private services (line 10), and the compensation that they receive was added to compensation of employees (line 17). For 1999-2010, these changes contributed to downward revisions to exports of "other" private services and to upward revisions to compensation of employees (receipts) (table D).

In the previously published statistics, income flows associated with U.S. holdings and allocations of special drawing rights (SDRs) were included in U.S. government receipts (line 16) on a net basis; that is, the amount recorded was equal to interest receipts on SDR holdings net of interest payments on SDR allocations. However, the Balance of Payments and International Investment Position Manual recommends that interest receipts and payments be recorded on a gross basis.

Beginning with statistics for 2003, interest receipts were recorded in U.S. government receipts (line 16), and interest payments were recorded in U.S. government payments (line 33). This new treatment contributed to upward revisions to U.S. government receipts and payments for nearly all years; the downward revision to U.S. government payments for 2010 was attributable to a downward revision to foreign holdings of U.S. Treasury and agency securities (tables D and E).

Statistical Changes Current account

Several changes in methodologies were introduced in this annual revision in order to improve the statistics on exports and imports of goods and services and on income payments. In addition, source data were updated for goods, services, income, and transfers.

For this annual revision, several of the balance-of-payments adjustments that BEA applies to Census Bureau data to convert the data to a balance-of-payments basis have been updated. These adjustments are itemized in table 2, part A, in the article "U.S. International Transactions: First Quarter of 2011" in this issue and are incorporated into the respective end-use commodity categories presented in table 2, part C.

The balance-of-payments adjustments for low-value exports and imports were introduced for 1999-2006 with this annual revision and were revised for 2007-2009. The low-value adjustments for 2007-2009 were introduced with last year's annual revision to phase in a revised Census Bureau methodology for low-value transactions that was implemented for goods on a Census basis, beginning with statistics for 2010. The revisions to these adjustments are reflected in revisions to goods exports and imports for 1999-2009 in table B.

In the previously published statistics, balance-of-payments adjustments for low-value imports and for inland freight in Canada and Mexico were applied to imports of "other" goods. (The adjustment for inland freight is made to record the inland freight charges for transporting imports of certain Canadian and Mexican goods from the point of origin in Canada or Mexico to the U.S. border in order to record these imports at customs value.) Beginning with statistics for 1999, portions of these adjustments are now applied to the relevant end-use commodity categories rather than to imports of "other" goods. These reallocations resulted in downward revisions to the residual commodity category "imports, not elsewhere classified, and U.S. goods returned" (table 2, part C, line 158) and in offsetting upward revisions to several end-use commodity categories; the reallocations did not affect total imports of goods.

Beginning with statistics for 1999, this annual revision introduces seasonal adjustment for several balance-of-payments adjustments that exhibit statistically significant seasonal patterns. The following adjustments are now seasonally adjusted: goods procured in ports by nonresident carriers (exports and imports), low-value transactions (exports and imports), inland freight in Canada and Mexico (imports), and revaluation of software from media value to market value (imports). The incorporation of seasonally adjusted adjustments into goods exports and imports did not affect the annual statistics but did result in significant revisions to the quarterly statistics, particularly at the component level.

The methodology for estimating expenditures of U.S. air carriers in foreign ports was modified for 2004-2010. This change resulted in estimates that more accurately reflect these carriers' fuel and non-fuel expenditures. Revised fuel expenditures were incorporated into imports of petroleum and products (table 2, part C, line 100) through the balance-of-payments adjustment "goods procured in foreign ports by U.S. carriers." Revised nonfuel expenditures were incorporated into imports of "other" transportation services (line 25). The revisions resulting from this improved methodology are offsetting within goods and services. For goods, the revisions are reflected in imports of goods in table B; for services, the revisions are reflected in statistical changes for imports of "other" transportation services in table E.

Beginning with statistics for 1999, the methodology to measure the compensation and U.S. expenditures of foreign residents who work in the United States for less than one year (short-term workers) was improved. With this improvement, the coverage of documented short-term workers was expanded to include workers who enter the United States on temporary visas. In addition, a new method for estimating undocumented short-term workers is introduced that combines information on the undocumented immigrant population in the U.S. labor force, the occupations of these immigrants, wage rates, hours worked, migration patterns, and other variables. The sources for this information are the U.S. Department of Agriculture, the U.S. Department of Labor, the U.S. Department of Homeland Security, and the Pew Hispanic Center. (15) This expanded coverage of nonresident short-term workers in the United States resulted in upward revisions to both the compensation paid to these workers and their expenditures on goods and services in the United States.

The revisions resulting from these changes are reflected in compensation of employees (payments) in table E and in statistical changes for exports of "other" private services in table D.

Other changes include the following:

* Statistics for 2007-2010 were revised to incorporate new and updated source data from the initial results of BEA's 2009 Benchmark Survey of Financial Services Transactions Between U.S. Financial Services Providers and Foreign Persons. The revisions are reflected in statistical changes for "other" private services in tables D and E.

* Statistics for 2007-2010 were revised to incorporate new and updated source data from BEA's other surveys of international services transactions. The revisions are reflected in statistical changes for services in tables D and E.

* Statistics for 2000-2010 were revised to incorporate new and updated source data on U.S. government grants from the U.S. Department of Defense and the Millennium Challenge Corporation; statistics for 2008-2010 were also revised to incorporate new and updated source data from BEA's surveys of institutional remittances and international insurance transactions. The revisions for all years are reflected in revisions to net unilateral current transfers in table B.

* Statistics for 2007-2010 were revised to incorporate new and updated source data from the results of BEA's 2007 Benchmark Survey of Foreign Direct Investment in the United States; statistics for 2008-2010 were also revised to incorporate new and updated quarterly and annual survey data on direct investment financial and income flows. The revisions for all years are reflected in statistical changes for income in tables D and E.

* Statistics for 2008-2010 were revised to incorporate new source data on financial positions from the U.S. Treasury Department's annual surveys of cross-border securities that resulted in revisions to "other" private receipts (line 15) and "other" private payments (line 32). The revisions are reflected in statistical changes for income in tables D and E.

Financial account

This annual revision introduces new and improved source data from the U.S. Treasury Department's annual surveys of securities--U.S. Ownership of Foreign Securities as of December 2009 and Foreign-Residents' Holdings of U.S. Securities as of June 2010. The incorporation of data from these surveys led to revised transaction and income statistics associated with cross-border holdings of U.S. and foreign securities for 2009 and 2010. (Total revisions to selected components are summarized in table C.) The survey results are also reflected in revisions to the U.S. international investment position for 2009 and in the preliminary estimates for 2010. The following information summarizes the impact of the incorporation of the results from these surveys.

Foreign stocks and bonds. Position and transaction statistics were revised to incorporate the results from the December 2009 survey. To align BEA's statistics with the December 2009 survey results, for yearend 2009, positions for foreign stocks were revised up $17.9 billion, and positions for foreign bonds were revised up $76.8 billion. In addition, net U.S. purchases of foreign securities (line 52) were revised up for 2009 and were revised down for 2010.

U.S. Treasury bonds. Position and transaction statistics for foreign official and foreign private holdings were revised to incorporate the results from the June 2010 survey. The survey revealed that official holdings were $30.3 billion higher than estimated in the previously published statistics and that private holdings were $73.6 billion lower than estimated, resulting in offsetting revisions to positions and transactions. As a result, for yearend 2009, official holdings were revised up $14.8 billion, and private holdings were revised down $33.9 billion. In addition, official net purchases of U.S. Treasury securities (line 58) were revised up, and private net purchases (line 65) were revised down for the quarters between June 2009 and June 2010.

U.S. agency bonds. The June 2010 survey revealed that foreign official holdings were $25.1 billion lower than estimated in the previously published statistics and that foreign private holdings were $77.3 billion lower than estimated. As a result, for yearend 2009, official holdings were revised down $12.4 billion, and private holdings were revised down $36.4 billion. In addition, official net purchases of agency bonds (line 59) and private net purchases (a component of line 66) were both revised down for the quarters between June 2009 and June 2010.

U.S. corporate bonds. The June 2010 survey revealed that foreign official holdings were $13.7 billion lower than estimated in the previously published statistics and that foreign private holdings were $28.9 billion higher than estimated. As a result, for yearend 2009, official holdings were revised down $6.7 billion, and private holdings were revised up $20.7 billion. In addition, private net sales of corporate bonds (a component of line 66) were revised down for the quarters between June 2009 and June 2010.

U.S. corporate stocks. The June 2010 survey revealed that foreign official holdings were $71.4 billion higher than estimated in the previously published statistics and that foreign private holdings were $91.3 billion higher than estimated. As a result, for yearend 2009, official holdings were revised up $39.1 billion, and private holdings were revised up $48.4 billion. In addition, official net purchases of corporate stocks (a component of line 62) were revised up for the quarters between June 2009 and June 2010, mostly explaining the total revisions to line 62. Private net purchases (a component of line 66) were also revised up for the same period.

Foreign private net purchases of U.S. securities other than U.S. Treasury securities (line 66). In this line, the revisions to foreign private transactions in agency bonds, corporate bonds, and corporate stocks are combined, resulting in a slight upward revision for 2009; the upward revisions to corporate bonds and stocks were mostly offset by the downward revision to agency bonds. For 2010, the combined private net purchases of these securities were revised down $55.0 billion; the downward revision to agency bonds more than offset the upward revisions to corporate bonds and stocks.

Appendix A follows.

Appendix A. Revisions to U.S. International Transactions-Continues

[Millions of dollars, quarters seasonally adjusted]

                 Exports of goods and services and income receipts

 (Credits +,     Previously
debits -) (1)     published      Revised       Revision

1999               1,259,810     1,262,431         2,621
2000               1,421,515     1,425,260         3,745
2001               1,295,693     1,300,156         4,463
2002               1,258,412     1,263,580         5,168
2003               1,340,353     1,345,930         5,577
2004               1,572,315     1,578,939         6,624
2005               1,816,449     1,824,780         8,331
2006               2,135,004     2,144,443         9,439
2007               2,478,267     2,488,394        10,127
2008               2,635,540     2,656,585        21,045
2009               2,159,000     2,174,533        15,533
2010               2,496,630     2,500,817         4,187

1999: I              300,183       301,005           822
      II             307,288       307,938           650
      III            319,936       320,396           460
      IV             332,407       333,095           688

2000: I              341,684       342,570           886
      II             355,307       356,151           844
      III            360,295       361,296         1,001
      IV             364,231       365,246         1,015

2001: I              350,489       351,600         1,111
      II             334,968       335,986         1,018
      III            312,094       313,257         1,163
      IV             298,144       299,313         1,169

2002: I              303,113       304,361         1,248
      II             314,894       316,088         1,194
      III            322,396       323,800         1,404
      IV             318,013       319,332         1,319

2003: I              322,251       323,717         1,466
      II             325,297       326,636         1,339
      III            335,696       337,118         1,422
      IV             357,105       358,454         1,349

2004: I              375,509       377,095         1,586
      II             387,026       388,727         1,701
      III            396,510       398,132         1,622
      IV             413,268       414,985         1,717

2005: I              434,342       436,444         2,102
      II             447,045       449,101         2,056
      III            456,957       458,956         1,999
      IV             478,105       480,278         2,173

2006: I              503,544       505,587         2,043
      II             528,994       532,230         3,236
      III            540,586       542,555         1,969
      IV             561,880       564,073         2,193

2007: I              579,878       582,062         2,184
      II             607,461       610,791         3,330
      III            635,412       638,132         2,720
      IV             655,515       657,411         1,896

2008: I              667,109       670,832         3,723
      II             688,549       692,907         4,358
      III            684,836       691,564         6,728
      IV             595,046       601,284         6,238

2009: I              521,735       524,276         2,541
      II             520,110       522,990         2,880
      III            540,729       545,364         4,635
      IV             576,426       581,904         5,478

2010: I              600,802       595,359        -5,443
      II             614,362       616,163         1,801
      III            627,201       632,309         5,108
      IV             654,264       656,986         2,722

                 Imparts of goods and services and income payments

 (Credits +,     Previously
debits -) (1)     published      Revised       Revision

1999              -1,510,160    -1,513,659        -3,499
2000              -1,779,241    -1,782,832        -3,591
2001              -1,628,364    -1,632,198        -3,834
2002              -1,651,538    -1,655,837        -4,299
2003              -1,789,227    -1,793,223        -3,996
2004              -2,114,441    -2,119,214        -4,773
2005              -2,458,268    -2,464,813        -6,545
2006              -2,846,159    -2,853,549        -7,390
2007              -3,080,813    -3,083,637        -2,824
2008              -3,182,368    -3,207,834       -25,466
2009              -2,412,489    -2,427,804       -15,315
2010              -2,829,383    -2,835,620        -6,237

1999: I             -351,384      -352,302          -918
      II            -366,942      -367,809          -867
      III           -388,429      -389,266          -837
      IV            -403,404      -404,283          -879

2000: I             -427,435       428,360          -925
      II            -441,346      -442,215          -869
      III           -453,930      -454,812          -882
      IV            -456,532      -457,448          -916

2001: I             -442,651      -443,696        -1,045
      II            -416,573      -417,491          -918
      III           -400,408      -401,351          -943
      IV            -368,736      -369,660          -924

2002: I             -388,482      -389,616        -1,134
      II            -415,201      -416,300        -1,099
      III           -423,203      -424,236        -1,033
      IV            -424,648      -425,684        -1,036

2003: I             -438,915      -440,022        -1,107
      II            -437,795      -438,819        -1,024
      III           -447,874      -448,830          -956
      IV            -464,643      -465,553          -910

2004: I             -488,983      -490,218        -1,235
      II            -521,555      -522,894        -1,339
      III           -534,087      -535,296        -1,209
      IV            -569,815      -570,807          -992

2005: I             -580,106      -581,819        -1,713
      II            -600,750      -602,553        -1,803
      III           -617,365      -618,933        -1,568
      IV            -660,048      -661,508        -1,460

2006: I             -680,987      -682,915        -1,928
      II            -707,129      -709,192        -2,063
      III           -730,008      -731,811        -1,803
      IV            -728,035      -729,632        -1,597

2007: I             -745,529      -747,524        -1,995
      II            -772,733      -771,861           872
      III           -778,227      -779,067          -840
      IV            -784,323      -785,184          -861

2008: I             -806,180      -814,329        -8,149
      II            -835,632      -836,822        -1,190
      III           -827,042      -833,469        -6,427
      IV            -713,514      -723,214        -9,700

2009: I             -587,564      -589,791        -2,227
      II            -574,265      -575,304        -1,039
      III           -604,594      -609,953        -5,359
      IV            X46,066       -852,756        -6,690

2010: I             -674,596      -678,617        -4,021
      II            -703,926      -703,516           410
      III           -718,456      -717,682           774
      IV            -732,405      -735,804        -3,399

                      Unilateral current transfers,
                       net (inflows +, outflows -)

 (Credits +,     Previously
debits -) (1)     published      Revised       Revision

1999                 -50,428       -50,428             0
2000                 -58,645       -58,767          -122
2001                 -64,487       -64,561           -74
2002                 -64,948       -64,990           -42
2003                 -71,794       -71,796            -2
2004                 -88,362       -88,243           119
2005                -105,772      -105,741            31
2006                 -91,481       -91,515           -34
2007                -115,548      -115,061           487
2008                -122,026      -125,885        -3,859
2009                -124,943      -123,280         1,663
2010                -137,489      -136,095         1,394

1999: I              -11,885       -11,885             0
      II             -12,260       -12,260             0
      III            -11,987       -11,987             0
      IV             -14,295       -14,295             0

2000: I              -12,859       -12,843            16
      II             -13,368       -13,348            20
      III            -14,208       -14,387          -179
      IV             -18,212       -18,191            21

2001: I              -15,171       -15,151            20
      II             -15,802       -15,782            20
      III            -16,134       -16,265          -131
      IV             -17,374       -17,356            18

2002: I              -18,542       -18,540             2
      II             -15,007       -14,988            19
      III            -15,005       -15,089           -84
      IV             -16,394       -16,374            20

2003: I              -18,219       -18,252           -33
      II             -17,600       -17,634           -34
      III            -17,707       -17,676            31
      IV             -18,269       -18,234            35

2004: I              -22,987       -22,941            46
      II             -21,385       -21,367            18
      III            -21,141       -21,121            20
      IV             -22,850       -22,815            35

2005: I              -28,723       -28,741           -18
      II             -25,196       -25,175            21
      III            -24,658       -24,618            40
      IV             -27,194       -27,206           -12

2006: I              -20,521       -20,516             5
      II             -23,582       -23,610           -28
      III            -25,123       -25,141           -18
      IV             -22,255       -22,248             7

2007: I              -32,189       -32,211           -22
      II             -26,449       -26,481           -32
      III            -28,126       -28,092            34
      IV             -28,786       -28,279           507

2008: I              -32,928       -33,735          -807
      II             -29,747       -31,347        -1,600
      III            -30,177       -31,703        -1,526
      IV             -29,176       -29,103            73

2009: I              -29,747       -29,738             9
      II             -30,292       -30,497          -205
      III            -33,638       -33,269           369
      IV             -31,268       -29,777         1,491

2010: I              -34,889       -35,034          -145
      II             -33,163       -32,947           216
      III            -34,234       -34,754          -520
      IV             -35,204       -33,360         1,844

                       Balance on current account

 (Credits +,     Previously
debits -) (1)     published      Revised       Revision

1999                -300,779      -301,656          -877
2000                -416,371      -416,338            33
2001                -397,158      -396,603           555
2002                -458,074      -457,248           826
2003                -520,668      -519,089         1,579
2004                -630,488      -628,519         1,969
2005                -747,590      -745,774         1,816
2006                -802,636      -800,621         2,015
2007                -718,094      -710,303         7,791
2008                -668,854      -677,135        -8,281
2009                -378,432      -376,551         1,881
2010                -470,242      -470,898          -656

1999: I              -63,086       -63,182           -96
      II             -71,914       -72,131          -217
      III            -80,480       -80,857          -377
      IV             -85,292       -85,483          -191

2000: I              -98,611       -98,633           -22
      II             -99,407       -99,412            -5
      III           -107,843      -107,903           -60
      IV            -110,514      -110,394           120

2001: I             -107,333      -107,247            86
      II             -97,407       -97,287           120
      III           -104,448      -104,359            89
      IV             -87,966       -87,703           263

2002: I             -103,911      -103,794           117
      II            -115,314      -115,200           114
      III           -115,812      -115,524           288
      IV            -123,029      -122,727           302

2003: I             -134,883      -134,558           325
      II            -130,098      -129,817           281
      III           -129,886      -129,388           498
      IV            -125,808      -125,334           474

2004: I             -136,461      -136,065           396
      II            -155,914      -155,534           380
      III           -158,718      -158,286           432
      IV            -179,398      -178,636           762

2005: I             -174,486      -174,116           370
      II            -178,901      -178,627           274
      III           -185,066      -184,595           471
      IV            -209,137      -208,435           702

2006: I             -197,964      -197,845           119
      II            -201,717      -200,572         1,145
      III           -214,545      -214,397           148
      IV            -188,411      -187,807           604

2007: I             -197,840      -197,673           167
      II            -191,720      -187,551         4,169
      III           -170,941      -169,028         1,913
      IV            -157,593      -156,052         1,541

2008: I             -171,999      -177,232        -5,233
      II            -176,830      -175,262         1,568
      III           -172,383      -173,608        -1,225
      IV            -147,644      -151,032        -3,388

2009: I              -95,577       -95,253           324
      II             -84,447       -82,811         1,636
      III            -97,503       -97,858          -355
      IV            -100,907      -100,629           278

2010: I             -108,683      -118,292        -9,609
      II            -122,727      -120,300         2,427
      III           -125,489      -120,127         5,362
      IV            -113,345      -112,179         1,166

                      Capital-account transactions,
                        net (inflows +, outflows-)

 (Credits +,     Previously
debits -) (1)     published      Revised      Revision

1999                  -4,176        -4,176             0
2000                      -1            -1             0
2001                  13,198        13,198             0
2002                    -141          -141             0
2003                  -1,821        -1,821             0
2004                   3,049         3,049             0
2005                  13,116        13,116             0
2006                  -1,788        -1,788             0
2007                     384           384             0
2008                   6,010         6,010             0
2009                    -140          -140             0
2010                    -150          -152            -2

1999: I                   -7            -7             0
      II                  -1            -1             0
      III                 -3            -3             0
      IV               4,165        -4,165             0

2000: I                    0
      II                   2             2             0
      III                -10           -10             0
      IV                   6             6             0

2001: I                    0           (*)           (*)
      II                   4             4             0
      III             13,188        13,188             0
      IV                   6             6             0

2002: I                    7             7             0
      II                  -2            -2             0
      III                -69           -69             0
      IV                 -77           -77             0

2003: I                  -82           -82             0
      II              -1,252        -1,252             0
      III               -492          -492             0
      IV                   5             5             0

2004: I                  -56           -56             0
      II                   0
      III              3,173         3,173             0
      IV                 -68           -68             0

2005: I               -2,160        -2,160             0
      II                 -83           -83             0
      III             15,362        15,362             0
      IV                  -3            -3             0

2006: I               -1,220        -1,220             0
      II                -487          -487             0
      III                 -2            -2             0
      IV                 -79           -79             0

2007: I                    0             0             0
      II                 443           443             0
      III                -57           -57             0
      IV                  -2            -2             0

2008: I                   -8            -8             0
      II                 -18           -18             0
      III              6,043         6,043             0
      IV                  -7            -7             0

2009: I                  -20           -20             0
      II                 -29           -29             0
      III                -36           -36             0
      IV                 -56           -56             0

2010: I                   -3            -3             0
      II                  -2            -2             0
      III               -146          -146             0
      IV                   0            -2            -2

                 Net financial flows (inflows +, outflows-)

 (Credits +,      Previously
debits -) (1)     published      Revised      Revision

1999                  238,148      238,148             0
2000                  477,701      477,701             0
2001                  400,254      400,254             0
2002                  500,515      500,515             0
2003                  532,879      532,879             0
2004                  532,331      532,331             0
2005                  700,716      700,716             0
2006                  809,150      809,150             0
2007                  638,158      617,260       -20,898
2008                  577,852      730,568       152,716
2009                  216,075      245,919        29,844
2010              (2) 235,251      254,289    (2) 19,038

1999: I                23,694       23,694             0
      II               64,785       64,785             0
      III              32,570       32,570             0
      IV              117,099      117,099             0

2000: I                35,176       35,176             0
      II              139,263      139,263             0
      III             160,217      160,217             0
      IV              143,045      143,045             0

2001: I               114,573      114,573             0
      II              120,165      120,165             0
      III              57,084       57,084             0
      IV              108,433      108,433             0

2002: I                88,384       88,384             0
      II               91,613       91,613             0
      III             161,227      161,227             0
      IV              159,288      159,288             0

2003: I               158,593      158,593             0
      II               60,305       60,305             0
      III             128,422      128,422             0
      IV              185,563      185,563             0

2004: I               105,507      105,507             0
      II              161,128      161,128             0
      III             104,685      104,685             0
      IV              161,012      161,012             0

2005: I               105,007      105,007             0
      II               82,483       82,483             0
      III             221,043      221,043             0
      IV              292,183      292,183             0

2006: I               159,592      159,592             0
      II              197,789      197,789             0
      III             245,186      245,186             0
      IV              206,583      206,583             0

2007: I               248,176      254,181         6,005
      II              173,465      153,165       -20,300
      III              75,364       85,857        10,493
      IV              141,152      124,056       -17,096

2008: I               169,357      209,946        40,589
      II              155,362      155,766           404
      III             146,300      180,675        34,375
      IV              106,833      184,179        77,346

2009: I                 8,031       14,799         6,768
      II               14,661       10,360        -4,301
      III              77,640       57,915       -19,725
      IV              115,742      162,844        47,102

2010: I                34,825       32,482        -2,343
      II               31,030       28,079        -2,951
      III             136,986      164,388        27,402
      IV              232,410       29,340    (2) -3,070

(*) Less than 500,000 (+/-)

(1.) Credits +; U.S. receipts, an increase in U.S. liabilities,
or a decrease in U.S. claims. Debits ; U.S. payments, an increase
in U.S. claims, or a decrease in U.S. liabilities.

(2.) The previously published statistics exclude financial
derivatives, net (table 1, line 70) for the fourth quarter of 2010,
which were not available.

NOTE. Details may not add to totals because of rounding.

Acknowledgments

The revised statistics for the U.S. international accounts were prepared under the general direction of Paul W. Farello and Christopher A. Gohrband. Robert E. Yuskavage provided overall guidance.

Revised statistics for the reclassifications of selected services transactions were prepared by Laura P. Brokenbaugh for cruise fares, lulie E. Gressley and Gregory A. Tenentes for postal services, and Jeffrey R. Bogen, Omar C. Kebbeh, and John A. Sondheimer for film and television distribution rights, all under the direction of Edward F. Dozier and Michael A. Mann. Statistics for the improved treatment of expenditures of foreign nationals working for international organizations in the United States and for the improved treatment of short-term foreign workers in the United States were prepared by C. Omar Kebbeh under the direction of Michael A. Mann. Statistics for the improved treatment of expenditures of U.S. air carriers in foreign ports were prepared by Gregory A. Tenentes under the direction of Edward F. Dozier. Benjamin P. Kavanaugh prepared the new estimates of low-value transactions for goods, and Benjamin P. Kavanaugh and R. Christian Thieme prepared the seasonally-adjusted balance-of-payments adjustments for goods, all under the direction of John W. Rutter.

The 2009 benchmark survey of financial services transactions was conducted by Kiesha V. Middleton under the direction of Christopher J. Emond. Loft K. Chang prepared revised financial services transactions under the direction of Christopher A. Gohrband. The 2007 benchmark survey of foreign direct investment in the United States was conducted by the staff of Patricia E. Abaroa in the Direct Investment Division under the direction of David H. Galler.

Elena L. Nguyen, Erin M. Whitaker, and Cavan J. Wilk prepared financial-account statistics based on the U.S. Treasury Department's annual surveys of securities; Barbara H. Berman prepared revised statistics for bank claims and liabilities that reflect new information on the reclassification of certain financial firms to bank holding companies; Cavan J. Wilk prepared the estimates for the recording of income from special drawing rights on a gross basis, all under the direction of Christopher A. Gohrband.

Updated International Statistical Standards

In 2009, the International Monetary Fund released the sixth edition of the Balance of Payments and International Investment Position Manual. This update, the first since 1993, was coordinated with an update in 2008 of the System of National Accounts in order to maximize the overall consistency between these two key sets of international standards for economic accounts. In addition, the following manuals were also prepared in coordination with these two sets of standards as part of a concerted effort to maximize consistency in definitions, concepts, principles, and recommended practices: the fourth edition of the Benchmark Definition of Foreign Direct Investment, released by the Organisation for Economic Co-operation and Development in 2008, and the Manual on Statistics of International Trade in Services 2010 and the International Merchandise Trade Statistics: Concepts and Definition 2010, both released by the United Nations Statistical Commission earlier this year.

(1.) For a discussion of the revisions to the IIP accounts, see Elena L. Nguyen, "The International Investment Position of the United States at Yearend 2010" in this issue.

(2.) For a timetable for implementation, including a preview of planned changes that are reflected in this annual revision, see Kristy L. Howell and Ned G. Howenstine, "Modernizing and Enhancing BEA's International Economic Accounts: A Progress Report," SURVEY OF CURRENT BUSINESS 91 (May 2011): 26-38.

(3.) Unless otherwise specified, "goods" in this article refers to goods on a balance-of-payments basis. The statistics on goods are based on Census Bureau data that are collected by the U.S. Customs and Border Protection, U.S. Department of Homeland Security, and are adjusted by BEA for coverage, timing, valuation, and classification to a balance-of-payments basis.

(4.) Low-value transactions in Census Bureau data are those that fall below the reporting threshold in customs documents. For exports, the threshold is $2,500; for imports, the threshold is $2,000 ($250 for certain quota items).

(5.) The Millennium Challenge Corporation is an independent U.S. foreign aid agency created by the U.S. Congress in 2004 to "provide such assistance in a manner that promotes economic growth and the elimination of extreme poverty and [that) strengthens good governance, economic freedom, and investments in people."

(6.) BEA defines and measures insurance services as premiums less "normal" losses, where normal losses are inferred from the relationship of actual losses to premiums averaged over several years. (Income on assets deemed to be the property of policyholders and services auxiliary to insurance are also reflected in the measure of insurance services.) For regularly occurring losses, the differences between actual losses and normal losses are accounted for with offsetting entries, which are recorded in private remittances and other transfers, a component of the current account. For additional information, see Anne Flatness, Erin M. Whitaker, and Robert E. Yuskavage, "Annual Revision of the U.S. International Accounts," SURVEY 89 (July 2009): 43-44.

(7.) Net financial derivatives inflows were $13.7 billion in 2010. Previously published 2010 statistics ($15.1 billion) included only the first three quarters of 2010 because the fourth-quarter statistics were not available.

(8.) Nonbank claims and liabilities include intercompany debt between affiliated financial intermediaries that is collected in surveys of direct investment and reclassified to the nonbank accounts, as recommended by international statistical standards.

(9.) Survey data on direct investment affect U.S. claims reported by banks because owner's equity in unincorporated affiliates is included in direct investment statistics; bank claims are adjusted to avoid duplication in the ITAs.

(10.) A negative value indicates that net financial inflows exceed the combined deficits on the current and capital accounts; a positive value indicates that the combined deficits on the current and capital accounts exceed net financial inflows.

(11.) For additional information, see Howell and Howenstine.

(12.) Unless otherwise specified, all line numbers refer to table 1 in the article "U.S. International Transactions: First Quarter of2011" in this issue.

(13.) Balance of Payments and International Investment Position Manual, 6th ed. (Washington, DC: International Monetary Fund, 2009).

(14.) According to international guidelines, expenditures on goods and services in the host economy of nonresident employees of international organizations should be included in the services account.

(15.) The Pew Hispanic Center is a nonpartisan research organization that seeks to improve understanding of the U.S. Hispanic population.

Table A. Revisions to Current-Account and Capital-Account Balances,
Net Financial Flows, and the Statistical Discrepancy, 1999-2010
[Billions of dollars]

     (Credits +, debits -) (1)           1999       2000         2001

Balance on current account
    (line 77):
  Revised                              -301.7     -416.3       -396.6
  Previously published                 -300.8     -416.4       -397.2
  Amount of revision                     -0.9        (*)          0.6

Balance on goods and services
    (line 74):
  Revised                              -263.2     -376.7       -361.8
  Previously published                 -264.2     -378.8       -364.4
  Amount of revision                      1.1        2.0          2.6

Balance on goods (line 72):
  Revised                              -336.2     -445.8       -421.3
  Previously published                 -336.3     -446.2       -422.0
  Amount of revision                      0.1        0.4          0.7

Balance on services (line 73):
  Revised                                73.0       69.0         59.5
  Previously published                   72.1       67.5         57.6
  Amount of revision                      0.9        1.6          1.9

Balance on income (line 75):
  Revised                                11.9       19.2         29.7
  Previously published                   13.9       21.1         31.7
  Amount of revision                     -2.0       -1.9         -2.0

Unilateral current transfers,
    net (line 76):
  Revised                               -50.4      -58.8        -64.6
  Previously published                  -50.4      -58.6         -4.5
  Amount of revision                      0.0       -0.1         -0.1

Capital-account transactions,
    net (line 39):
  Revised                                -4.2        (*)         13.2
  Previously published                   -4.2        (*)         13.2
  Amount of revision                      0.0        0.0          0.0

Net financial flows (lines 40,
    55, and 70):
  Revised                               238.1      477.7        400.3
  Previously published                  238.1      477.7        400.3
  Amount of revision                      0.0        0.0          0.0

Statistical discrepancy (line 71):
  Revised                                67.7      -61.4        -16.8
  Previously published                   66.8      -61.3        -16.3
  Amount of revision                      0.9        (*)         -0.6

     (Credits +, debits -) (1)           2002       2003         2004

Balance on current account
    (line 77):
  Revised                              -457.2     -519.1       -628.5
  Previously published                 -458.1     -520.7       -630.5
  Amount of revision                      0.8        1.6          2.0

Balance on goods and services
    (line 74):
  Revised                              -417.4     -491.0       -605.4
  Previously published                 -420.5     -494.2       -609.3
  Amount of revision                      3.1        3.2          4.0

Balance on goods (line 72):
  Revised                              -474.5     -540.4       -663.5
  Previously published                 -475.3     -541.5       -665.6
  Amount of revision                      0.9        1.1          2.1

Balance on services (line 73):
  Revised                                57.1       49.4         58.2
  Previously published                   54.8       47.4         56.3
  Amount of revision                      2.2        2.1          1.9

Balance on income (line 75):
  Revised                                25.2       43.7         65.1
  Previously published                   27.4       45.3         67.2
  Amount of revision                     -2.2       -1.6         -2.1

Unilateral current transfers,
    net (line 76):
  Revised                               -65.0      -71.8        -88.2
  Previously published                  -64.9      -71.8        -88.4
  Amount of revision                      (*)        (*)          0.1

Capital-account transactions,
    net (line 39):
  Revised                                -0.1       -1.8          3.0
  Previously published                   -0.1       -1.8          3.0
  Amount of revision                      0.0        0.0          0.0

Net financial flows (lines 40,
    55, and 70):
  Revised                               500.5      532.9        532.3
  Previously published                  500.5      532.9        532.3
  Amount of revision                      0.0        0.0          0.0

Statistical discrepancy (line 71):
  Revised                               -43.1      -12.0         93.1
  Previously published                  -42.3      -10.4         95.1
  Amount of revision                     -0.8       -1.6         -2.0

     (Credits +, debits -) (1)           2005       2006         2007

Balance on current account
    (line 77):
  Revised                              -745.8     -800.6       -710.3
  Previously published                 -747.6     -802.6       -718.1
  Amount of revision                      1.8        2.0          7.8

Balance on goods and services
    (line 74):
  Revised                              -708.6     -753.3       -696.7
  Previously published                 -714.2     -759.2       -702.1
  Amount of revision                      5.6        6.0          5.4

Balance on goods (line 72):
  Revised                              -780.7     -835.7       -818.9
  Previously published                 -783.8     -839.5       -823.2
  Amount of revision                      3.1        3.8          4.3

Balance on services (line 73):
  Revised                                72.1       82.4        122.2
  Previously published                   69.6       80.2        121.1
  Amount of revision                      2.5        2.2          1.1

Balance on income (line 75):
  Revised                                68.6       44.2        101.5
  Previously published                   72.4       48.1         99.6
  Amount of revision                     -3.8       -3.9          1.9

Unilateral current transfers,
    net (line 76):
  Revised                              -105.7      -91.5       -115.1
  Previously published                 -105.8      -91.5       -115.5
  Amount of revision                      (*)        (*)          0.5

Capital-account transactions,
    net (line 39):
  Revised                                13.1       -1.8          0.4
  Previously published                   13.1       -1.8          0.4
  Amount of revision                      0.0        0.0          0.0

Net financial flows (lines 40,
    55, and 70):
  Revised                               700.7      809.2        617.3
  Previously published                  700.7      809.2        638.2
  Amount of revision                      0.0        0.0        -20.9

Statistical discrepancy (line 71):
  Revised                                31.9       -0.7         92.7
  Previously published                   33.8       -4.7         79.6
  Amount of revision                     -1.8       -2.0         13.1

     (Credits +, debits -) (1)           2008       2009         2010

Balance on current account
    (line 77):
  Revised                              -677.1     -376.6       -470.9
  Previously published                 -668.9     -378.4       -470.2
  Amount of revision                     -8.3        1.9         -0.7

Balance on goods and services
    (line 74):
  Revised                              -698.3     -381.3       -500.0
  Previously published                 -698.8     -374.9       -495.7
  Amount of revision                      0.5       -0.4         -4.3

Balance on goods (line 72):
  Revised                              -830.1     -505.9       -645.9
  Previously published                 -834.7     -506.9       -647.1
  Amount of revision                      4.5        1.0          1.2

Balance on services (line 73):
  Revised                               131.8      124.6        145.8
  Previously published                  135.9      132.0        151.4
  Amount of revision                     -4.1       -7.4         -5.5

Balance on income (line 75):
  Revised                               147.1      128.0        165.2
  Previously published                  152.0      121.4        163.0
  Amount of revision                     -4.9        6.6          2.3

Unilateral current transfers,
    net (line 76):
  Revised                              -125.9     -123.3       -136.1
  Previously published                 -122.0     -124.9       -137.5
  Amount of revision                     -3.9        1.7          1.4

Capital-account transactions,
    net (line 39):
  Revised                                 6.0       -0.1         -0.2
  Previously published                    6.0       -0.1         -0.2
  Amount of revision                      0.0        0.0          (*)

Net financial flows (lines 40,
    55, and 70):
  Revised                               730.6      245.9        254.3
  Previously published                  577.9      216.1    (2) 235.3
  Amount of revision                    152.7       29.8         19.0

Statistical discrepancy (line 71):
  Revised                               -59.4      130.8        216.8
  Previously published                   85.0      162.5    (2) 235.1
  Amount of revision                   -144.4      -31.7        -18.4

(*) Less than 50,000,000 (+/-)

(1.) Credits +; U.S. receipts, an increase in U.S. liabilities, or a
decrease in U.S. claims. Debits ; U.S. payments, an increase in U.S.
claims, or a decrease in U.S. liabilities.

(2.) The previously published statistics exclude financial
derivatives, net (table 1, line 70) for the fourth quarter of 2010,
which were not available.

NOTE. Line numbers refer to table 1 in "U.S. International
Transactions: First Quarter of 2011" in this issue of the SURVEY OF
CURRENT BUSINESS.

Table B. Revisions to Selected Current-Account and Capital-Account
Transactions, 1999-2010

[Billions of dollars]

   (Credits +, debits -) (1)           1999        2000        2001

Exports of goods and services
    and income receipts
    (line 1):
  Revised                           1,262.4     1,425.3     1,300.2
  Previously published              1,259.8     1,421.5     1,295.7
  Amount of revision                    2.6         3.7         4.5

  Goods, balance of payments
      basis (line 3):
    Revised                           698.2       784.8       731.2
    Previously published              698.0       784.2       730.3
    Amount of revision                  0.2         0.6         0.9

    Services (line 4);
    Revised                           268.8       288.0       276.5
    Previously published              267.9       286.4       274.6
    Amount of revision                  0.9         1.6         1.9

    Income receipts (line 12):
    Revised                           295.4       352.5       292.4
    Previously published              293.9       350.9       290.8
    Amount of revision                  1.5         1.6         1.6

Imports of goods and services
    and income payments
    (line 18):
  Revised                          -1,513.7    -1,782.8    -1,632.2
  Previously published             -1,510.2    -1,779.2    -1,628.4
  Amount of revision                   -3.5        -3.6         3.8

  Goods, balance of payments
      basis (line 20):
    Revised                        -1,034.4    -1,230.6    -1,152.5
    Previously published           -1,034.3    -1,230.4    -1,152.3
    Amount of revision                  (*)        -0.2        -0.2

  Services (line 21):
    Revised                          -195.8      -219.0      -217.0
    Previously published             -195.8      -219.0      -217.0
    Amount of revision                  0.0         0.0         0.0

  Income payments (line 29):
    Revised                          -283.5      -333.3      -262.7
    Previously published             -280.0      -329.9      -259.1
    Amount of revision                 -3.5        -3.4        -3.6

Unilateral current transfers,
    net (line 35):
  Revised                             -50.4       -58.8       -64.6
  Previously published                -50.4       -58.6        -4.5
  Amount of revision                    0.0        -0.1        -0.1

Capital-account transactions,
    net (line 39):
  Revised                              -4.2         (*)        13.2
  Previously published                 -4.2         (*)        13.2
  Amount of revision                    0.0         0.0         0.0

   (Credits +, debits -) (1)           2002        2003        2004

Exports of goods and services
    and income receipts
    (line 1):
  Revised                           1,263.6     1,345.9     1,578.9
  Previously published              1,258.4     1,340.4     1,572.3
  Amount of revision                    5.2         5.6         6.6

  Goods, balance of payments
      basis (line 3):
    Revised                           697.4       729.8       822.0
    Previously published              696.3       728.3       819.9
    Amount of revision                  1.2         1.6         2.1

    Services (line 4);
    Revised                           283.4       293.7       341.2
    Previously published              281.2       291.6       338.7
    Amount of revision                  2.2         2.1         2.5

    Income receipts (line 12):
    Revised                           282.7       322.4       415.8
    Previously published              280.9       320.5       413.7
    Amount of revision                  1.8         2.0         2.1

Imports of goods and services
    and income payments
    (line 18):
  Revised                          -1,655.8    -1,793.2    -2,119.2
  Previously published             -1,651.5    -1,789.2    -2,114.4
  Amount of revision                   -4.3        -4.0        -4.8

  Goods, balance of payments
      basis (line 20):
    Revised                       -1,171,9     -1,270.2    -1,485.5
    Previously published           -1,171.6    -1,269.8    -1,485.5
    Amount of revision                 -0.3        -0.4         (*)

  Services (line 21):
    Revised                          -226.4      -244.3      -283.0
    Previously published             -226.4      -244.3      -282.4
    Amount of revision                  0.0         0.0        -0.6

  Income payments (line 29):
    Revised                          -257.5      -278.7      -350.7
    Previously published             -253.5      -275.1      -346.5
    Amount of revision                 -4.0        -3.6        -4.2

Unilateral current transfers,
    net (line 35):
  Revised                             -65.0       -71.8       -88.2
  Previously published                -64.9       -71.8       -88.4
  Amount of revision                    (*)         (*)         0.1

Capital-account transactions,
    net (line 39):
  Revised                              -0.1        -1.8         3.0
  Previously published                 -0.1        -1.8         3.0
  Amount of revision                    0.0         0.0         0.0

   (Credits +, debits -) (1)           2005        2006        2007

Exports of goods and services
    and income receipts
    (line 1):
  Revised                           1,824.8     2,144.4     2,488.4
  Previously published              1,816.4     2,135.0     2,478.3
  Amount of revision                    8.3         9.4        10.1

  Goods, balance of payments
      basis (line 3):
    Revised                           911.7     1,039.4     1,164.0
    Previously published              909.0     1,035.9     1,160.4
    Amount of revision                  2.7         3.5         3.6

    Services (line 4);
    Revised                           375.8       420.4       490.6
    Previously published              372.2       416.9     488.3,
    Amount of revision                  3.6         3.5         2.3

    Income receipts (line 12):
    Revised                           537.3       684.6       833.8
    Previously published              535.3       682.2       829.6
    Amount of revision                  2.1         2.4         4.2

Imports of goods and services
    and income payments
    (line 18):
  Revised                          -2,464.8    -2,853.5    -3,083.6
  Previously published             -2,458.3    -2,846.2    -3,080.8
  Amount of revision                   -0.5         7.4         2.8

  Goods, balance of payments
      basis (line 20):
    Revised                        -1,692.4    -1,875.1    -1,982.8
    Previously published           -1,692.8    -1,875.3    -1,983.6
    Amount of revision                  0.4         0.2         0.7

  Services (line 21):
    Revised                          -303.6      -338.0      -368.4
    Previously published             -302.5      -336.7      -367.2
    Amount of revision                 -1.1        -1.3        -1.2

  Income payments (line 29):
    Revised                          -468.7      -640.4      -732.3
    Previously published             -462.9      -634.1      -730.0
    Amount of revision                 -5.8        -0.3        -2.3

Unilateral current transfers,
    net (line 35):
  Revised                            -105.7       -91.5      -115.1
  Previously published               -105.8       -91.5      -115.5
  Amount of revision                    (*)         (*)         0.5

Capital-account transactions,
    net (line 39):
  Revised                              13.1        -1.8         0.4
  Previously published                 13.1        -1.8         0.4
  Amount of revision                    0.0         0.0         0.0

   (Credits +, debits -) (1)           2008        2009        2010

Exports of goods and services
    and income receipts
    (line 1):
  Revised                           2,656.6     2,174.5     2,500.8
  Previously published              2,635.5     2,159.0     2,496.6
  Amount of revision                   21.0        15.5         4.2

  Goods, balance of payments
      basis (line 3):
    Revised                         1,307.5     1,069.5     1,288.7
    Previously published            1,304.9     1,068.5     1,288.7
    Amount of revision                  2.6         1.0         (*)

    Services (line 4);
    Revised                           535.2       505.5       548.9
    Previously published              534.1       502.3       545.5
    Amount of revision                  1.1         3.2         3.4

    Income receipts (line 12):
    Revised                           813.9       599.5       663.2
    Previously published              796.5       588.2       662.5
    Amount of revision                 17.4        11.3         0.8

Imports of goods and services
    and income payments
    (line 18):
  Revised                          -3,207.8    -2,427.8    -2,835.6
  Previously published             -3,182.4    -2,412.5    -2,829.4
  Amount of revision                  -25.5       -15.3        -6.2

  Goods, balance of payments
      basis (line 20):
    Revised                        -2,137.6    -1,575.4    -1,934.6
    Previously published           -2,139.5    -1,575.4    -1,935.7
    Amount of revision                  1.9         (*)         1.2

  Services (line 21):
    Revised                          -403.4      -380.9      -403.0
    Previously published             -398.3      -370.3      -394.2
    Amount of revision                 -5.1       -10.6        -8.9

  Income payments (line 29):
    Revised                          -666.8      -471.5      -498.0
    Previously published             -644.6      -466.8      -499.5
    Amount of revision                -22.3        -4.7         1.5

Unilateral current transfers,
    net (line 35):
  Revised                            -125.9      -123.3      -136.1
  Previously published               -122.0      -124.9      -137.5
  Amount of revision                   -3.9         1.7         1.4

Capital-account transactions,
    net (line 39):
  Revised                               6.0        -0.1        -0.2
  Previously published                  6.0        -0.1        -0.2
  Amount of revision                    0.0         0.0         (*)

(*) Less than 50,000,000 (+/-)

(1.) Credits +; U.S. receipts, an increase in U.S. liabilities, or a
decrease in U.S. claims. Debits ; U.S. payments, an increase in U.S,
claims, or a decrease in U.S. liabilities.

NOTE. Line numbers refer to table 1 in "U.S. International
Transactions: First Quarter of 2011" in this issue of the
SURVEY of CURRENT BUSINESS.

Table C. Revisions to Selected Financial-Account
Transactions, 2007-2010

[Billions of dollars]

            (Credits +, debits -) (1)                    2007     2008

U.S. owned assets abroad, excluding financial
    derivatives (increase/financial outflow (-))
    (line 40):
  Revised                                            -1,453.6    332.1
  Previously published                               -1,475.7    156.1
  Amount of revision.                                    22.1    176.0

  U.S. private assets abroad

    Direct investment (line 51):
      Revised                                          -414.0   -329.1
      Previously published                             -414.0   -351.1
      Amount of revision                                  (*)     22.1

    Foreign securities (line 52):
      Revised                                          -366.5    197.3
      Previously published                             -366.5    197.9
      Amount of revision                                  0.0     -0.6

    U.S. claims on unaffiliated foreigners
        reported by U.S. nonbanking concerns
        (line 53):
      Revised                                            -0.9    456.2
      Previously published                              -23.1    421.2
      Amount of revision                                 22.2     35.0

    U.S. claims reported by U.S. banks,
        not included elsewhere (line 54):
      Revised                                          -649.7    542.1
      Previously published                             -649.7    422.6
      Amount of revision                                  0.0    119.5

Foreign-owned assets in the United States,
    excluding financial derivatives
    (increase/financial inflow (+)) (line 55):
  Revised                                             2,064.6    431.4
  Previously published                                2,107.7    454.7
  Amount of revision                                    -43.0    -23.3

  Foreign official assets in the United States

    U.S. Treasury securities (line 58):
      Revised                                            98.4    548.7
      Previously published                               98.4    548.7
      Amount of revision                                  0.0      0.0

    Other U.S. government securities (line 59):
      Revised                                           171.5     42.7
      Previously published                              171.5     42.7
      Amount of revision                                  0.0      0.0

    Other foreign official assets (line 62):
      Revised                                            96.7    103.9
      Previously published                               96.7    103.9
      Amount of revision                                  0.0      0.0

  Other foreign assets in the United States

    Direct investment (line 64):
      Revised                                           221.2    310.1
      Previously published                              271.2    328.3
      Amount of revision                                -50.0    -18.2

    U.S. Treasury securities (line 65):
      Revised                                            66.8    162.9
      Previously published                               66.8    161.4
      Amount of revision                                  0.0      1.5

    U.S. securities other than U.S. Treasury
        securities (line 66):
      Revised                                           605.4   -165.6
      Previously published                              605.4   -166.5
      Amount of revision                                  0.0      0.9

    U.S. liabilities to unaffiliated foreigners
        reported by U.S. nonbanking concerns
        (line 68):
      Revised                                           183.2    -31.5
      Previously published                              182.4    -36.5
      Amount of revision                                  0.9      5.0

    U.S. liabilities reported by U.S. banks,
        not included elsewhere (line 69):
      Revised                                           517.6   -428.3
      Previously published                              511.5   -412.0
      Amount of revision                                  6.2    -16.4

Financial derivatives, net (line 70):
  Revised                                                 6.2    -32.9
  Previously published                                    6.2    -32.9
  Amount of revision                                      0.0      0.0

            (Credits +, debits -) (1)                  2009       2010

U.S. owned assets abroad, excluding financial
    derivatives (increase/financial outflow (-))
    (line 40):
  Revised                                            -139.3   -1,005.2
  Previously published                               -140.5   -1,024.7
  Amount of revision.                                   1.1       19.5

  U.S. private assets abroad

    Direct investment (line 51):
      Revised                                        -303.6     -351.4
      Previously published                           -268.7     -345.6
      Amount of revision                              -34.9       -5.7

    Foreign securities (line 52):
      Revised                                        -226.8     -151.9
      Previously published                           -208.2     -167.2
      Amount of revision                              -18.6       15.2

    U.S. claims on unaffiliated foreigners
        reported by U.S. nonbanking concerns
        (line 53):
      Revised                                         144.9        7.4
      Previously published                            124.4        1.5
      Amount of revision                               20.4        5.9

    U.S. claims reported by U.S. banks,
        not included elsewhere (line 54):
      Revised                                        -242.9     -515.0
      Previously published                           -277.1     -519.1
      Amount of revision                               34.2        4.1

Foreign-owned assets in the United States,
    excluding financial derivatives
    (increase/financial inflow (+)) (line 55):
  Revised                                             335.8    1,245.7
  Previously published                                305.7    1,244.8
  Amount of revision                                   30.1        0.9

  Foreign official assets in the United States

    U.S. Treasury securities (line 58):
      Revised                                         569.9      397.8
      Previously published                            561.1      374.1
      Amount of revision                                8.8       23.7

    Other U.S. government securities (line 59):
      Revised                                        -132.6      -80.8
      Previously published                           -120.1      -77.0
      Amount of revision                              -12.5       -3.8

    Other foreign official assets (line 62):
      Revised                                          53.6       30.0
      Previously published                             21.9       -2.0
      Amount of revision                               31.8       32.0

  Other foreign assets in the United States

    Direct investment (line 64):
      Revised                                         158.6      236.2
      Previously published                            134.7      194.5
      Amount of revision                               23.9       41.8

    U.S. Treasury securities (line 65):
      Revised                                         -14.9      256.4
      Previously published                             22.8      306.4
      Amount of revision                              -37.7      -50.0

    U.S. securities other than U.S. Treasury
        securities (line 66):
      Revised                                           4.0      120.5
      Previously published                              0.1      175.4
      Amount of revision                                3.9      -55.0

    U.S. liabilities to unaffiliated foreigners
        reported by U.S. nonbanking concerns
        (line 68):
      Revised                                          12.4       77.5
      Previously published                             -1.5       50.0
      Amount of revision                               13.9       27.5

    U.S. liabilities reported by U.S. banks,
        not included elsewhere (line 69):
      Revised                                        -317.1      177.1
      Previously published                           -313.0      192.2
      Amount of revision                               -4.1      -15.1

Financial derivatives, net (line 70):
  Revised                                              49.5       13.7
  Previously published                                 50.8      215.1
  Amount of revision                                   -1.3       -1.4

(*) Less than 50,000,000 (+/-)

(1.) Credits +; U.S receipts, an increase in U.S. liabilities, or a
decrease in U.S. claims. Debits ; U.S. payments, an increase in U.S.
claims, or a decrease in U.S. liabilities.

(2.) The previously published statistics exclude financial
derivatives, net (table 1, line 70) for the fourth quarter of 2010,
which were not available.

NOTE. Line numbers refer to table 1 in "U.S. International
Transactions: First Quarter of 2011" in this issue of the
SURVEY OF CURRENT BUSINESS.

Table D. Sources of Revisions for Selected Current-Account
Transactions: Exports of Services and Income Receipts, 1999-2010

[Billions of dollars]

                                                 Amount of revision

         (Credits +, debits -) (1)             1999     2000     2001

Exports of services (line 4)                    0.9      1.6      1.9
  Changes in definitions
    and classifications (2)                    -1.5     -1.4     -1.5
  Statistical changes (3)                       2.4      3.0      3.4

    Travel (line 6)                             0.4      0.5      0.7
      Reclassification of cruise fares (2)      0.4      0.5      0.7
      Statistical changes (3)                   0.0      0.0      0.0

    Passenger fares (line 7)                   -0.4     -0.5     -0.7
      Reclassification of cruise fares (2)     -0.4     -0.5     -0.7
      Statistical changes (3)                   0.0      0.0      0.0

    Other transportation (line 8)               0.2      0.2      0.3
      Reclassification of postal
        services (2)                            0.2      0.2      0.3
      Statistical changes (3)                   0.0      0.0      0.0

    Royalties and license fees (line 9)         8.1      8.6      8.8
      Reclassification of distribution
        rights for film and television
        recordings (2)                          8.1      8.6      8.8
      Statistical changes (3)                   0.0      0.0      0.0

    Other private services (line 10)           -7.1     -7.1     -6.9
      Reclassification of distribution         -8.1     -8.6     -8.8
        rights for film and television
        recordings (2)
      Exclusion of U.S. expenditures of
        foreign nationals working at
        international organizations in
        the United States (2)                  -1.5     -1.4     -1.5
      Statistical changes (3)                   2.4      2.8      3.3

    U.S. government miscellaneous
        services (line 11)                     -0.2     -0.2     -0.3
      Reclassification of postal
        services (2)                           -0.2     -0.2     -0.3
      Statistical changes (3)                   0.0      0.0      0.0

Income receipts (line 12)                       1.5      1.6      1.6
  Changes in definitions                        1.5      1.6      1.6
    and classifications (2)
  Statistical changes (3)                       0.0      0.0      0.0
    U.S. government receipts (line 16)          0.0      0.0      0.0
      Recording of income on holdings
        and allocations of special
        drawing rights on a gross
        basis (2)                               0.0      0.0      0.0
      Statistical changes (3)                   0.0      0.0      0.0

    Compensation of employees (line 17)         1.5      1.6      1.6
      Inclusion of compensation of
         foreign nationals working
         at international organizations
         in the United States (2)               1.5      1.6      1.6
      Statistical changes (3)                   0.0      0.0      0.0

                                                 Amount of revision

         (Credits +, debits -) (1)             2002     2003     2004

Exports of services (line 4)                    2.2      2.1      2.5
  Changes in definitions
    and classifications (2)                    -1.3     -1.1     -1.0
  Statistical changes (3)                       3.5      3.2      3.4

    Travel (line 6)                             0.8      0.8      0.9
      Reclassification of cruise fares (2)      0.8      0.8      0.9
      Statistical changes (3)                   0.0      0.0      0.0

    Passenger fares (line 7)                   -0.8     -0.8     -0.9
      Reclassification of cruise fares (2)     -0.8     -0.8     -0.9
      Statistical changes (3)                   0.0      0.0      0.0

    Other transportation (line 8)               0.2      0.2      0.3
      Reclassification of postal
        services (2)                            0.2      0.2      0.3
      Statistical changes (3)                   0.0      0.0      0.0

    Royalties and license fees (line 9)         9.4      9.8     10.4
      Reclassification of distribution
        rights for film and television
        recordings (2)                          9.4      9.8     10.4
      Statistical changes (3)                   0.0      0.0      0.0

    Other private services (line 10)           -7.2     -7.8     -7.8
      Reclassification of distribution         -9.4     -9.8    -10.4
        rights for film and television
        recordings (2)
      Exclusion of U.S. expenditures of
        foreign nationals working at
        international organizations in
        the United States (2)                  -1.3     -1.1     -1.0
      Statistical changes (3)                   3.5      3.2      3.6

    U.S. government miscellaneous
        services (line 11)                     -0.2     -0.2     -0.3
      Reclassification of postal
        services (2)                           -0.2     -0.2     -0.3
      Statistical changes (3)                   0.0      0.0      0.0

Income receipts (line 12)                       1.8      2.0      2.1
  Changes in definitions                        1.8      2.0      2.0
    and classifications (2)
  Statistical changes (3)                       0.0      (*)      (*)
    U.S. government receipts (line 16)          0.0      0.1      0.1
      Recording of income on holdings
        and allocations of special
        drawing rights on a gross
        basis (2)                               0.0      0.1      0.1
      Statistical changes (3)                   0.0      (*)      (*)

    Compensation of employees (line 17)         1.8      1.9      1.9
      Inclusion of compensation of
         foreign nationals working
         at international organizations
         in the United States (2)               1.8      1.9      1.9
      Statistical changes (3)                   0.0      0.0      0.0

                                                 Amount of revision

         (Credits +, debits -) (1)             2005     2006     2007

Exports of services (line 4)                    3.6      3.5      2.3
  Changes in definitions
    and classifications (2)                    -1.0     -1.0     -1.1
  Statistical changes (3)                       4.6      4.5      3.4

    Travel (line 6)                             0.4      0.4      0.5
      Reclassification of cruise fares (2)      0.4      0.4      0.5
      Statistical changes (3)                   0.0      0.0      0.0

    Passenger fares (line 7)                   -0.4     -0.4     -0.5
      Reclassification of cruise fares (2)     -0.4     -0.4     -0.5
      Statistical changes (3)                   0.0      0.0      0.0

    Other transportation (line 8)               0.3      0.3      0.3
      Reclassification of postal
        services (2)                            0.3      0.3      0.3
      Statistical changes (3)                   0.0      0.0      0.0

    Royalties and license fees (line 9)        10.1     12.8     13.2
      Reclassification of distribution
        rights for film and television
        recordings (2)                         10.1     12.8     14.4
      Statistical changes (3)                   0.0      0.0     -1.2

    Other private services (line 10)           -6.4     -9.2    -10.8
      Reclassification of distribution        -10.1    -12.8    -14.4
        rights for film and television
        recordings (2)
      Exclusion of U.S. expenditures of
        foreign nationals working at
        international organizations in
        the United States (2)                  -1.0     -1.0     -1.1
      Statistical changes (3)                   4.6      4.6      4.7

    U.S. government miscellaneous
        services (line 11)                     -0.3     -0.3     -0.3
      Reclassification of postal
        services (2)                           -0.3     -0.3     -0.3
      Statistical changes (3)                   0.0      0.0      0.0

Income receipts (line 12)                       2.1      2.4      4.2
  Changes in definitions                        2.1      2.2      2.3
    and classifications (2)
  Statistical changes (3)                       (*)      0.2      2.0
    U.S. government receipts (line 16)          0.2      0.3      0.3
      Recording of income on holdings
        and allocations of special
        drawing rights on a gross
        basis (2)                               0.2      0.3      0.3
      Statistical changes (3)                   (*)      (*)      (*)

    Compensation of employees (line 17)         1.9      2.1      2.1
      Inclusion of compensation of
         foreign nationals working
         at international organizations
         in the United States (2)               1.9      2.0      2.0
      Statistical changes (3)                   0.0      0.2      0.2

                                                 Amount of revision

         (Credits +, debits -) (1)             2008     2009     2010

Exports of services (line 4)                    1.1      3.2      3.4
  Changes in definitions
    and classifications (2)                    -1.0     -1.0     -1.0
  Statistical changes (3)                       2.1      4.2      4.4

    Travel (line 6)                             0.4      0.3      0.4
      Reclassification of cruise fares (2)      0.4      0.4      0.4
      Statistical changes (3)                   0.0     -0.1      (*)

    Passenger fares (line 7)                   -0.4     -0.3     -0.4
      Reclassification of cruise fares (2)     -0.4     -0.4     -0.4
      Statistical changes (3)                   0.0      0.1      (*)

    Other transportation (line 8)               0.3      0.1      0.1
      Reclassification of postal
        services (2)                            0.3      0.3      0.3
      Statistical changes (3)                   0.0     -0.1     -0.2

    Royalties and license fees (line 9)         8.2      7.4      9.8
      Reclassification of distribution
        rights for film and television
        recordings (2)                         13.2     13.7     13.5
      Statistical changes (3)                  -5.0     -0.3     -3.8

    Other private services (line 10)           -0.9     -3.5     -6.3
      Reclassification of distribution        -13.2    -13.7    -13.5
        rights for film and television
        recordings (2)
      Exclusion of U.S. expenditures of
        foreign nationals working at
        international organizations in
        the United States (2)                  -1.0     -1.0     -1.0
      Statistical changes (3)                   7.3     11.2      8.3

    U.S. government miscellaneous
        services (line 11)                     -0.3     -0.3     -0.3
      Reclassification of postal
        services (2)                           -0.3     -0.3     -0.3
      Statistical changes (3)                   0.0      0.0      (*)

Income receipts (line 12)                      17.4     11.3      0.8
  Changes in definitions                        2.2      2.1      2.2
    and classifications (2)
  Statistical changes (3)                      15.2      9.2     -1.4
    U.S. government receipts (line 16)          0.2      0.1      0.2
      Recording of income on holdings
        and allocations of special
        drawing rights on a gross
        basis (2)                               0.2      0.1      0.2
      Statistical changes (3)                   (*)      (*)      (*)

    Compensation of employees (line 17)         2.1      2.2      2.2
      Inclusion of compensation of
         foreign nationals working
         at international organizations
         in the United States (2)               2.0      2.1      2.1
      Statistical changes (3)                   0.2      0.2      0.1

(*) Less than 50,000,000 (+/-)

(1.) Credits +; U.S receipts, an increase in U.S. liabilities,
or a decrease in U.S. claims. Debits ; U.S. payments, an increase
in U.S. claims, or a decrease in U.S. liabilities.

(2.) Revision includes the effect of updated source data.

(3.) Changes in methodologies and source data.

NOTE. Line numbers refer to table 1 in "U.S. International
Transactions: First Quarter of 2011" in this issue of the
SURVEY OF CURRENT BUSINESS.

Table E. Sources of Revisions for Selected Current-Account
Transactions: Imports of Services and Income Payments, 1999-2010

[Billions of dollars]

                                                 Amount of revision

          (Credits debits -) (1)               1999     2000     2001

Imports of services (line 21)                   0.0      0.0      0.0
  Changes in definitions
    and classifications (2)                     0.0      0.0      0.0
  Statistical changes (3)                       0.0      0.0      0.0

    Travel (line 23)                           -0.4     -0.7     -0.7
      Reclassification of cruise fares (2)     -0.4     -0.7     -0.7
      Statistical changes (3)                   0.0      0.0      0.0

    Passenger fares (line 24)                   0.4      0.7      0.7
      Reclassification of cruise fares (2)      0.4      0.7      0.7
      Statistical changes (3)                   0.0      0.0      0.0

    Other transportation (line 25)             -0.5     -0.5     -0.4
      Reclassification of postal services      -0.5     -0.5     -0.4
      Statistical changes (3)                   0.0      0.0      0.0

    Royalties and license fees (line 26)       -0.2     -0.1     -0.1
      Reclassification of distribution
        rights for film and television
        recordings (2)                         -0.2     -0.1     -0.1
      Statistical changes (3)                   0.0      0.0      0.0

    Other private services (line 27)            0.2      0.1      0.1
      Reclassification of distribution
        rights for film and television
        recordings (2)                          0.2      0.1      0.1
      Statistical changes (3)                   0.0      0.0      0.0

    U.S. government miscellaneous
        services (line 28)                      0.5      0.5      0.4
      Reclassification of postal
        services (2)                            0.5      0.5      0.4
      Statistical changes (3)                   0.0      0.0      0.0

Income payments (line 29)                      -3.5     -3.4     -0.6
  Changes in definitions
    and classifications (2)                     0.0      0.0      0.0
  Statistical changes (3)                      -3.5     -3.4     -3.6

    U.S. government payments (line 33)          0.0      0.0      0.0
      Recording of income on holdings
        and allocations of special
        drawing rights on a gross
        basis (2)                               0.0      0.0      0.0
      Statistical changes (3)                   0.0      0.0      0.0

    Compensation of employees (line 34)        -3.5     -3.4     -3.6
      Changes in definitions
        and classifications                     0.0      0.0      0.0
      Statistical changes (3)                  -3.5     -3.4     -3.6

                                                 Amount of revision

          (Credits debits -) (1)               2002     2003     2004

Imports of services (line 21)                   0.0      0.0     -0.6
  Changes in definitions
    and classifications (2)                     0.0      0.0      0.0
  Statistical changes (3)                       0.0      0.0     -0.6

    Travel (line 23)                           -0.8     -0.9     -1.0
      Reclassification of cruise fares (2)     -0.8     -0.9     -1.0
      Statistical changes (3)                   0.0      0.0      0.0

    Passenger fares (line 24)                   0.8      0.9      1.0
      Reclassification of cruise fares (2)      0.8      0.9      1.0
      Statistical changes (3)                   0.0      0.0      0.0

    Other transportation (line 25)             -0.4     -0.4      1.2
      Reclassification of postal services      -0.4     -0.4     -0.6
      Statistical changes (3)                   0.0      0.0     -0.6

    Royalties and license fees (line 26)       -0.1     -0.2     -0.4
      Reclassification of distribution
        rights for film and television
        recordings (2)                         -0.1     -0.2     -0.4
      Statistical changes (3)                   0.0      0.0      0.0

    Other private services (line 27)            0.1      0.2      0.4
      Reclassification of distribution
        rights for film and television
        recordings (2)                          0.1      0.2      0.4
      Statistical changes (3)                   0.0      0.0      0.0

    U.S. government miscellaneous
        services (line 28)                      0.4      0.4      0.6
      Reclassification of postal
        services (2)                            0.4      0.4      0.6
      Statistical changes (3)                   0.0      0.0      0.0

Income payments (line 29)                      -4.0     -3.6     -0.2
  Changes in definitions
    and classifications (2)                     0.0     -0.1     -0.1
  Statistical changes (3)                      -4.0     -3.5     -4.1

    U.S. government payments (line 33)          0.0     -0.1     -0.1
      Recording of income on holdings
        and allocations of special
        drawing rights on a gross
        basis (2)                               0.0     -0.1     -0.1
      Statistical changes (3)                   0.0      0.0      0.0

    Compensation of employees (line 34)        -4.0     -3.5     -4.1
      Changes in definitions
        and classifications                     0.0      0.0      0.0
      Statistical changes (3)                  -4.0     -3.5     -4.1

                                                 Amount of revision

          (Credits debits -) (1)               2005     2006     2007

Imports of services (line 21)                  -1.1     -1.3     -1.2
  Changes in definitions
    and classifications (2)                     0.0      0.0      0.0
  Statistical changes (3)                      -1.1     -1.3     -1.2

    Travel (line 23)                           -1.0     -0.9     -0.8
      Reclassification of cruise fares (2)     -1.0     -0.9     -0.8
      Statistical changes (3)                   0.0      0.0      0.0

    Passenger fares (line 24)                   1.0      0.9      0.8
      Reclassification of cruise fares (2)      1.0      0.9      0.8
      Statistical changes (3)                   0.0      0.0      0.0

    Other transportation (line 25)              1.7      1.9      2.3
      Reclassification of postal services      -0.6     -0.6     -0.6
      Statistical changes (3)                  -1.1     -1.2     -1.7

    Royalties and license fees (line 26)       -1.0     -1.5     -1.5
      Reclassification of distribution
        rights for film and television
        recordings (2)                         -1.0     -1.5     -1.5
      Statistical changes (3)                   0.0      0.0      0.0

    Other private services (line 27)            1.0      1.5      2.0
      Reclassification of distribution
        rights for film and television
        recordings (2)                          1.0      1.5      1.5
      Statistical changes (3)                   0.0     -0.1      0.5

    U.S. government miscellaneous
        services (line 28)                      0.6      0.6      0.6
      Reclassification of postal
        services (2)                            0.6      0.6      0.6
      Statistical changes (3)                   0.0      0.0      0.0

Income payments (line 29)                      -0.8     -0.3     -2.3
  Changes in definitions
    and classifications (2)                    -0.2     -0.3     -0.3
  Statistical changes (3)                      -5.7      0.0     -2.0

    U.S. government payments (line 33)         -0.2     -0.3     -0.3
      Recording of income on holdings
        and allocations of special
        drawing rights on a gross
        basis (2)                              -0.2     -0.3     -0.3
      Statistical changes (3)                   0.0      0.0      0.0

    Compensation of employees (line 34)        -5.7     -6.0     -4.7
      Changes in definitions
        and classifications                     0.0      0.0      0.0
      Statistical changes (3)                  -5.7     -6.0      4.7

                                                 Amount of revision

          (Credits debits -) (1)               2008     2009     2010

Imports of services (line 21)                  -5.1    -10.6     -8.9
  Changes in definitions
    and classifications (2)                     0.0      0.0      0.0
  Statistical changes (3)                      -5.1    -10.6     -8.9

    Travel (line 23)                           -0.8     -0.9     -0.9
      Reclassification of cruise fares (2)     -0.8     -0.8     -1.1
      Statistical changes (3)                   0.0      (*)      0.2

    Passenger fares (line 24)                   0.7      0.8      0.8
      Reclassification of cruise fares (2)      0.8      0.8      1.1
      Statistical changes (3)                   0.0      0.0     -0.3

    Other transportation (line 25)              3.0      1.0      2.2
      Reclassification of postal services      -0.6     -0.5     -0.5
      Statistical changes (3)                  -2.4     -0.6     -1.8

    Royalties and license fees (line 26)       -3.8     -4.6     -4.2
      Reclassification of distribution
        rights for film and television
        recordings (2)                         -1.8     -1.9     -1.8
      Statistical changes (3)                  -2.0     -2.7     -2.5

    Other private services (line 27)            1.1     -5.4     -2.9
      Reclassification of distribution
        rights for film and television
        recordings (2)                          1.8      1.9      1.8
      Statistical changes (3)                  -0.7     -7.4     -4.6

    U.S. government miscellaneous
        services (line 28)                      0.6      0.5      0.5
      Reclassification of postal
        services (2)                            0.6      0.5      0.5
      Statistical changes (3)                   0.0      0.0      (*)

Income payments (line 29)                     -22.3     -4.7      1.5
  Changes in definitions
    and classifications (2)                    -0.2     -0.1     -0.2
  Statistical changes (3)                     -22.1     -4.6      1.6

    U.S. government payments (line 33)         -0.2     -0.4      5.7
      Recording of income on holdings
        and allocations of special
        drawing rights on a gross
        basis (2)                              -0.2     -0.1     -0.2
      Statistical changes (3)                   0.0     -0.3      5.8

    Compensation of employees (line 34)        -5.6     -3.5     -3.1
      Changes in definitions
        and classifications                     0.0      0.0      0.0
      Statistical changes (3)                  -5.6     -3.5     -3.1

(*) Less than 50,000,000 (+/-)

(1.) Credits +; U.S receipts, an increase in U.S. liabilities,
or a decrease in U.S. claims. Debits -; U.S. payments, an increase
in U.S. claims, or a decrease in U.S. liabilities.

(2.) Revision includes the effect of updated source data.

(3.) Changes in methodologies and source data.

NOTE. Line numbers refer to table 1 in "U.S. International
Transactions: First Quarter of 2011" in this issue of the
SURVEY OF CURRENT BUSINESS.