U.S. affiliates of foreign companies: operations in 2004.

Anderson, Thomas W. ; Zeile, William J.

ACCORDING to preliminary results from the Bureau of Economic Analysis' latest annual survey of foreign direct investment in the United States, growth in the current-dollar value added of majority-owned nonbank U.S. affiliates of foreign companies increased substantially in 2004. The growth was largely due to expansions in existing operations and was in line with stepped-up growth in the overall U.S. economy. The growth in value added would have been even larger had it not been for a number of foreign selloffs of U.S. companies. In contrast to the growth in value added and in the face of a modest increase in U.S. private-industry employment, employment by affiliates declined. The decline, which was the fourth consecutive annual decline in employment by U.S. affiliates, mainly reflected the fact that most of the selloffs were of relatively labor intensive operations.

In 2004, the current-dollar value added of majority-owned nonbank affiliates ("U.S. affiliates") increased 8 percent, from $475 billion to $515 billion, following a 3-percent increase in 2003 (table 1). (1) In comparison, total U.S. current-dollar value added in nonbank private industries increased 7 percent, following a 5-percent increase in 2003. As a result, the affiliate share of value added in private industries remained flat in 2004, at 5.7 percent, slightly below the 5.9-percent peak reached in 2000 (chart 1).

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As in 2002 and 2003, the increase in affiliate value added in 2004 was largely due to expansions in existing affiliate operations rather than to new foreign direct investment, which remained well below the levels reached in 1998-2001. (2) For existing affiliates, value-added growth in 2004 was particularly strong in the information, real estate, and manufacturing industries. Value added also increased substantially for several affiliates with operations in petroleum refining and petroleum wholesale trade, reflecting the effect of increased oil prices.

In contrast to the increase in value added, employment by affiliates continued to decline. In 2004, employment by affiliates fell 2 percent, following decreases of 1-3 percent in each of the years 2001-2003. However, total U.S. employment in private industries increased 1 percent after decreasing 0.5 percent in 2003 and 1 percent in 2002. The affiliate share of private industry employment thus dropped, from 4.7 percent in 2003 to 4.5 percent in 2004, continuing a downtrend from a peak share of 5.0 percent in 2000. (3)

Much of the decrease in employment by affiliates in 2004 was the result of foreign selloffs of U.S. companies, including selloffs of subsidiary companies by U.S. affiliates that remained under foreign control. (4) The decrease also reflected employment reductions associated with increased labor productivity in ongoing affiliate operations: Many of the affiliates that had large increases in value added in 2004 either reduced their employment or increased their employment only modestly.

The following are additional highlights of the operations of U.S. affiliates in 2004.

* By country of ownership, the United Kingdom remained the largest investing country in terms of affiliate value added, followed by Germany and Japan.

* By industrial sector, affiliates' shares of U.S. employment were highest in mining and in manufacturing. In 2004, affiliates' shares decreased in several manufacturing industries.

* By state, the affiliate share of employment was highest in South Carolina, followed by New Hampshire. In manufacturing, the affiliate share was highest in Delaware.

* Affiliates continued to account for large shares of U.S. exports and imports of goods (nearly 20 percent for exports and about 25 percent for imports); however, for both exports and imports, the affiliate shares dipped in 2004.

This article examines changes in the value added, employment, and trade in goods of U.S. affiliates of foreign companies in 2004, particularly as they relate to changes in the corresponding totals for the U.S. economy. For each of these measures, changes in affiliate operations are examined both in the aggregate and by major investing country. For value added, the changes are also examined by industry of affiliate, and for employment, the affiliate shares of the economy are examined by industry and by state. Several additional measures of U.S.-affiliate operations are presented in tables at the end of this article.

Value Added

In 2004, the current-dollar value added of majority-owned nonbank U.S. affiliates increased 8 percent, from $475 billion to $515 billion. In comparison, total U.S. current-dollar value added in private nonbank industries increased 7 percent. (5) The share of value added in private industries that was accounted for by affiliates remained unchanged, at 5.7 percent.

By country of ownership

In 2004, more than three-fourths of the value added of majority-owned nonbank U.S. affiliates was accounted for by affiliates with ultimate beneficial owners (UBOs) in seven major investing countries: Canada, France, Germany, Japan, the Netherlands, Switzerland, and the United Kingdom (table 2 and chart 2). As in every other year since 1977 (the initial year covered by BEA's annual surveys of U.S.-affiliate operations), the largest investing country in terms of affiliate value added was the United Kingdom; in 2004, British-owned affiliates accounted for 21 percent of the value added of all majority-owned U.S. affiliates and for 1 percent of total U.S. value added in private industries. German- and Japanese-owned affiliates accounted for the next largest shares of affiliate value added (13 percent each).

For each of these seven countries, the value added of affiliates increased in. 2004. The increases were most substantial for British- and Canadian-owned affiliates. Value added by British-owned affiliates increased 14 percent, to $107 billion. The increase reflected stepped-up production by affiliates in manufacturing, finance, and wholesale trade and the entry into the U.S. market of new U.S. affiliates in manufacturing. The value added of Canadian-owned affiliates also increased 14 percent, reflecting both increases in production by existing affiliates and Canadian acquisitions of U.S. companies in mining and manufacturing. For affiliates of the other five countries, the growth in value added was relatively modest, ranging from 6 percent for Japanese-owned affiliates to 1 percent for Netherlands-owned affiliates. The very modest growth for Netherlands-owned affiliates was partly due to selloffs of affiliates.

Among other investing countries, value added increased substantially in 2004 for affiliates with UBOs in Korea (22 percent), Bermuda (17 percent), Australia (17 percent), and Italy (15 percent). The growth in value added of Korean-owned firms was mostly in the wholesale trade sector, especially in firms involved in imports and sales of electronic products and motor vehicles. The growth in value added of Australian-owned firms was mainly by existing affiliates in information and manufacturing. The growth in value added of Italian-owned firms was largely due to expanded output at existing firms and the acquisition of affiliates in manufacturing. The growth in value added of Bermuda-owned affiliates was largely attributable to affiliates in information and manufacturing. The large presence in recent years of U.S. affiliates with UBOs in Bermuda is partly the result of inversions in ownership for multinational companies that had previously been headquartered in the United States. (6)

By industry of UBO

In 2004, as in 2003, more than half of the value added of majority-owned nonbank affiliates was accounted for by affiliates of UBOs that were manufacturing companies (table 3). Another third of the value added of affiliates was accounted for by affiliates of UBOs that were nonmanufacturing companies (mainly companies in wholesale and retail trade, information, mining, and finance). Affiliates of UBOs that were individuals, estates, or trusts accounted for 8 percent of affiliate value added, and affiliates of UBOs that were foreign governments or government-related entities (including government-owned enterprises) accounted for 3 percent of affiliate value added.

Government-owned affiliates. More than three-fourths of the value added of government-owned U.S. affiliates was accounted for by affiliates of four investing countries: Venezuela, Saudi Arabia, Germany, and France. The share of U.S. affiliate value added accounted for by government-owned affiliates varied widely among these four countries. In 2004, government-owned affiliates accounted for more than 90 percent of the value added of Venezuelan- and Saudi Arabian-owned U.S. affiliates. (7) In contrast, government-owned affiliates accounted for less than 2 percent of the value added of German-owned affiliates and for less than 3 percent of the value added of French-owned affiliates. In the early 1990s--before the privatization of several leading French government-owned enterprises--the government-owned affiliate share of value added by French-owned U.S. affiliates had been much higher, exceeding 20 percent in each year in 1990-93.

By industry of affiliate

In 2004, the distribution of affiliate value added by major industry changed little. (8) Affiliates in manufacturing continued to account for the largest share, 47 percent, which was little changed from the share in 2003 (table 4). Affiliates in wholesale trade, which includes several large affiliates with substantial secondary operations in manufacturing, accounted for the next largest share of affiliate value added, 18 percent. (9) About half of the growth in affiliate value added was accounted for by affiliates in manufacturing; affiliates in wholesale trade and information also accounted for a significant portion of the growth in 2004.

In manufacturing, affiliate value added increased 9 percent, about the same rate of growth as that for all industries. Within manufacturing, value added in primary metals more than doubled because of shifts in the industry classification of affiliates that had sales in multiple industries and increased value added by existing affiliates. (10) Affiliate value-added growth was also high in beverages and tobacco products (17 percent) and petroleum and coal products (16 percent). In beverages and tobacco products, the increase was largely due to shifts in the industry classification of affiliates. In petroleum and coal products, the increase was largely due to higher oil prices. Growth in affiliate value added was also high in plastics and rubber products (12 percent) and nonmetallic mineral products (11 percent.).

Value added by affiliates fell substantially in fabricated metal products (19 percent) and in electrical equipment, appliances, and components (7 percent). In both industries, the decrease was largely due to shifts in the industry classification of affiliates.

Outside of manufacturing, affiliate value added in information increased substantially (19 percent). This increase was due to strong growth in affiliate value added in the telecommunications industry, particularly by existing affiliates that were recovering from weak operations in previous years. Affiliate value added also increased substantially in the publishing industries, largely because of expansion by affiliates in book publishing. Growth in affiliate value added was also considerable in real estate and rental and leasing (10 percent).

Employment

In 2004, employment by majority-owned nonbank U.S. affiliates of foreign companies decreased 2 percent, from 5.2 million employees to 5.1 million employees (table 1). The decrease--the fourth in 4 years--followed decreases of 3 percent in 2003, 3 percent in 2002, and 1 percent in 2001. Total U.S. employment in private industries, which had decreased at a more modest pace in 2001-2003, increased 1 percent in 2004. As a result, the share of private industry employment accounted for by U.S. affiliates decreased from 4.7 percent in 2003 to 4.5 percent in 2004, continuing a downtrend from a peak share of 5.0 percent in 2000.

By industry

Mining continued to account for the largest affiliate share of U.S. employment at the sector level, at 14.9 percent (table 5). (11) Affiliates also accounted for substantial shares of total U.S. employment in manufacturing (11.8 percent), wholesale trade (7.3 percent), and information (6.3 percent). Within manufacturing, the largest shares were accounted for by affiliates in chemicals (28.2 percent), motor vehicles (24.0 percent), and nonmetallic mineral products (23.7 percent).

The affiliate share of U.S. employment in manufacturing decreased from 12.0 percent in 2003 to 11.8 percent in 2004, as the 3-percent fall in affiliate employment in manufacturing exceeded the 1-percent decrease in total U.S. manufacturing employment.

Within manufacturing, the affiliate share of U.S. employment fell in several industries, including food and beverages, printing and related support activities, petroleum and coal products, machinery, and motor vehicles. In food and beverage and tobacco products, the share decreased from 9.1 percent to 8.2 percent, as affiliate employment decreased substantially because of foreign owners selling their interests in U.S. affiliates to U.S.-owned companies and because of employment reductions in other affiliates. In printing and related support activities, the affiliate share fell from 7.9 percent to 6.7 percent, as affiliate employment fell sharply because of selloffs of affiliates, which more than offset the growth in employment for affiliates that were foreign-owned in both years.

The affiliate share of U.S. employment in petroleum and coal products manufacturing fell from 15.8 percent to 14.6 percent. Total U.S. employment in this industry was unchanged, but affiliate employment fell 8 percent, because of job cuts by existing affiliates. Similarly, in machinery manufacturing, the affiliate share of employment fell from 14.0 percent to 12.8 percent. Total U.S. employment in this industry decreased only slightly, but affiliate employment decreased 9 percent. In motor vehicles, bodies and trailers, and parts, the affiliate share of employment decreased from 24.9 percent to 24.0 percent. Total U.S. employment in this industry edged up slightly, but affiliate employment fell 4 percent in 2004, mainly as a result of reductions in employment at German- and Canadian-owned affiliates.

Among manufacturing industries, the largest increase in the affiliate share of U.S. employment was in primary metals, from 11.8 percent to 12.9 percent. Affiliate employment in this industry increased 8 percent, spurred by both the entrance of new affiliates and increases in employment at existing affiliates. Total U.S. employment in this industry fell 2 percent.

Outside of manufacturing, the affiliate share of U.S. employment in finance (except depository institutions) and insurance fell from 5.4 percent to 4.5 percent, as affiliate employment fell 16 percent in the face of a small increase in total U.S. employment in this industry. Approximately two-thirds of the decrease in affiliate employment was in nondepository finance; the remaining third was in insurance. Affiliate employment in the utilities industry, which had risen dramatically from 1999 to 2002, fell 7 percent in 2004 because of reductions in employment at existing affiliates. The affiliate share of U.S. employment in this industry also fell, from 5.8 percent to 5.5 percent.

The affiliate share of employment in mining, which had reached a peak of 20.6 percent in 2002, decreased from 16.2 percent to 14.9 percent. Affiliate employment in mining decreased 4 percent, mainly because of selloffs, but total U.S. mining employment rose 5 percent.

By state

In 2004, as in 2003, South Carolina had the largest share of private employment accounted for by majority-owned U.S. affiliates, 7.9 percent, down from 8.3 percent (table 6). The affiliate shares of employment were also relatively high in New Hampshire (7.4 percent), Connecticut (7.1 percent), Delaware (7.0 percent), and Hawaii (6.6 percent).

As in previous years, more than three-fourths of U.S. affiliate employment in South Carolina was accounted for by European-owned affiliates, particularly affiliates in manufacturing and retail trade. In New Hampshire, Connecticut, and Delaware, European-owned affiliates also accounted for the largest shares of employment. In Hawaii, however, more than half of affiliate employment was accounted for by Japanese-owned affiliates.

Employment by affiliates fell in all but 13 states. Decreases were especially large in Illinois and California. In Illinois, employment by affiliates fell 16,900, or 7 percent. The decrease was due to cutbacks at existing affiliates, especially in manufacturing. In California, affiliate employment decreased 11,000 or 2 percent. In Hawaii, employment decreased 3,600, or 10 percent; until 2002, Hawaii had the largest share of affiliate employment. The decrease in Hawaii was mainly due to selloffs of affiliate operations.

Employment by affiliates increased substantially in Arizona and Mississippi. In Arizona, employment by affiliates rose 4,900, or 8 percent. The rise was due to increases in employment at existing affiliates and the acquisition of U.S-owned companies by foreign investors. In Mississippi, employment rose 3,800, or 18 percent, the largest percentage increase of any state.

In manufacturing, the affiliate shares of employment in 2004 were highest in Delaware (25.2 percent), South Carolina (22.5 percent), and New Hampshire (21.2 percent) (table 7). In both Delaware and New Hampshire, most of the manufacturing employees worked at German- or British-owned facilities. In South Carolina, German-owned affiliates accounted for the largest number of manufacturing employees, followed by affiliates with UBOs in Japan, France, the United Kingdom, and Sweden.

Total manufacturing employment by affiliates fell 93,200, or 6 percent. In absolute terms, the decrease was largest in Illinois, where manufacturing employment fell by nearly 9,000. The decrease was due both to selloffs of affiliates and to job cuts at existing affiliates. Mississippi was one of the few states to see an increase in manufacturing employment; manufacturing employment by majority-owned U.S. affiliates rose 3,800, an increase of more than 40 percent. The increase was due to the opening of new manufacturing facilities in the state.

Trade in Goods

Majority-owned U.S. affiliates of foreign-owned companies continued to account for large shares of total U.S. exports and imports of goods (nearly 20 percent of exports and about 25 percent of imports in 2004, down somewhat from the shares of exports and imports in earlier years) (table 8). These shares are much larger than the affiliate shares of either value added or employment, reflecting both the general international orientation of foreign-owned companies and their production and distribution ties to their foreign parents. Much of the trade in goods by affiliates--nearly 50 percent of exports and about 80 percent of imports--is accounted for by intrafirm transactions between the affiliates and their foreign parents or other member companies of their foreign parent groups (see the box "Key Terms"). The intrafirm trade of majority-owned U.S. affiliates has generally accounted for 8-10 percent of U.S. exports and for 20-25 percent of U.S. imports. (12)

Since the early 1990s, imports by U.S. affiliates have usually been at least twice as high as their exports, and the gap in earlier years was even larger. This trade gap for affiliates is substantially more pronounced than the gap between total U.S. imports and exports. The gap for affiliates is largely accounted for by wholesale trade affiliates, many of which were established to facilitate the import of goods manufactured abroad by their foreign parents. Since the late 1980s, the imports of wholesale trade affiliates have been two to four times as large as their exports, and these affiliates have consistently accounted for more than two-thirds of the total import-export gap for U.S. affiliates. (13)

Exports

Exports of goods by majority-owned U.S. affiliates increased 4 percent in 2004, to $154 billion, following a 5-percent increase in 2003. In comparison, total U.S. exports increased 13 percent, following a 5-percent increase. As a result, the share of all U.S. goods exports that was accounted for by foreign-owned firms in the United States fell from 20.4 percent to 18.8 percent. Most of the increase in affiliate exports was accounted for by affiliates in wholesale trade, especially chemical and allied products wholesalers. Exports by manufacturing affiliates also rose.

As in previous years, Japanese-owned affiliates accounted for the largest share of affiliate exports (28.8 percent) (table 9). Exports of goods by Japanese-owned affiliates rose 8 percent in 2004, and both wholesale trade and manufacturing contributed to the growth.

Exports by Korean-owned U.S. affiliates rose 40 percent, from $5.2 billion in 2003 to $7.3 billion in 2004, after rising almost 20 percent in 2003. As a result of these increases, Korean-owned affiliates became the fifth largest exporters among majority-owned U.S. affiliates in 2004; in 2002, they were ranked eighth. Most of the increase in 2004 was due to increases in overseas sales of computer chips, semiconductors, and telecommunications equipment.

Exports by British-owned affiliates also rose significantly, 8 percent, driven by increases in exports by affiliates in wholesale trade and in several other industries.

Exports by French-owned affiliates fell 4 percent in 2004, largely because of selloffs of a number of affiliates to U.S. purchasers.

Imports

Imports of goods by U.S. affiliates rose 6 percent in 2004, to $378 billion, following a 6-percent increase in 2003. Total U.S. imports of goods, however, increased at the much faster pace of 17 percent (following an 8-percent increase), partly reflecting increased imports from countries for which U.S.-affiliate trade has accounted for a relatively small share of the total. (14) As a result, the share of all U.S. imports accounted for by U.S. affiliates fell from 28.4 percent in 2003 to 25.7 percent in 2004.

By industry, the increase in imports was mainly accounted for by affiliates in wholesale trade, especially in electrical goods, petroleum, and motor vehicle wholesalers. Imports by affiliates in manufacturing and in mining also rose.

Imports by Japanese-owned affiliates rose 3 percent in 2004, to $136.9 billion (table 9). Although their share of total affiliate imports continued to fall, Japanese-owned affiliates accounted for the largest share of affiliate imports (36.2 percent). The majority of imports by Japanese-owned affiliates were by wholesale trade affiliates, especially those that also have significant secondary operations in transportation equipment manufacturing. Imports by Japanese-owned affiliates were also substantial in manufacturing.

Imports by Korean-owned U.S. affiliates rose sharply, 30 percent, in 2004. The rise was due to increased imports of electronic goods and transportation equipment from the foreign parent group by their wholesale trade affiliates.

Imports by French-owned affiliates rose 6 percent in 2004, driven by increases in imports by existing manufacturing affiliates, especially in chemical and audio visual equipment.

Imports by German-owned affiliates fell slightly, to $61.7 billion, as increases in imports by wholesale trade affiliates were more than offset by decreases in imports by affiliates in manufacturing and information. Despite the decline, German-owned affiliates remained the second largest importers.

Revisions

The estimates of U.S.-affiliate operations in 2004 presented in this article are preliminary. The estimates of employment, sales, and expenditures for property, plant, and equipment supersede the advance summary estimates for majority-owned affiliates that were released on April 20, 2006 (BEA news release 06-14). From the advance estimates to the preliminary estimates, the estimate of employment was revised up 0.8 percent, the estimate of sales was revised up 0.1 percent, and the estimate of expenditures was revised up 0.5 percent.

The final estimates of U.S.-affiliate operations in 2003 are also presented. The final estimates of employment, sales, and expenditures for property, plant, and equipment supersede the updated estimates in the April news release and the preliminary estimates that were released in August 2005. (15) From the estimates released in April to these final estimates, the estimate of employment was revised up 0.4 percent, the estimate of sales was revised up 0.1 percent, and the estimate of expenditures was revised down 0.5 percent. From the preliminary estimates to the final estimates, the estimate of employment was revised down 0.2 percent, the estimate of sales was revised down 0.7 percent, and the estimate of expenditures was revised down 0.1 percent.

Acknowledgments

The 2004 annual survey of foreign direct investment in the United States was conducted under the direction of Joseph E Cherry Ill. Charles R. Gravitz supervised the processing of the survey. The following staff contributed to the processing and editing of the survey reports: Chester C. Braham, Sarah E. Braham, Nichole M. Brooks, Polly Y. Cheung, Karen M. Dennison, Constance T. Deve, Lonnie A. Hunter, Marites R. Lucero, Edna A. Ludden, Emelia A. Marfo-Sarbeng, Demetria A. McCormick, Gregory L. McCormick, Sreedhar Pidathala, Chad M. Poist, Joseph N. Poist III, Makia M. Riley, Ronald L. Ross, Clarence D. Smith, Marie P. Smith, Amy Song, John R. Starnes, and Christopher J. Stein.

Computer programming for data estimation and for the generation of tables was provided by Diane I. Young, Tara L. O'Brien, and Neeta B. Kapoor.

Key Terms

The following key terms are used to describe U.S. affiliates of foreign companies and their operations.

U.S. affiliate. A U.S. business enterprise in which there is foreign direct investment--that is, in which a single foreign person owns or controls, directly or indirectly, 10 percent or more of the voting securities of an incorporated U.S. business enterprise or an equivalent interest in an unincorporated U.S. business enterprise. "Person" is broadly defined to include any individual, corporation, branch, partnership, associated group, association, estate, trust, or other organization and any government (including any corporation, institution, or other entity or instrumentality of a government). A "foreign person" is any person that resides outside the United States--that is, outside the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, and all U.S. territories and possessions.

Majority-owned U.S. affiliate. A U.S. affiliate that is owned more than 50 percent by foreign direct investors.

Foreign parent. The first person outside the United States in a U.S. affiliate's ownership chain that has a direct investment interest in the affiliate.

Ultimate beneficial owner (UBO). That person, proceeding up a U.S. affiliate's ownership chain, beginning with and including the foreign parent, that is not owned more than 50 percent by another person. Unlike the foreign parent, the UBO of an affiliate may be located in the United States. The UBO of each U.S. affiliate is identified to ascertain the person that ultimately owns or controls the U.S. affiliate and that therefore ultimately derives the benefits from ownership or control.

Foreign parent group. Consists of (1) the foreign parent, (2) any foreign person, proceeding up the foreign parent's ownership chain, that owns more than 50 percent of the person below it, up to and including the UBO, and (3) any foreign person, proceeding down the ownership chain(s) of each of these members, that is owned more than 50 percent by the person above it.

Value added. The contribution to U.S. gross domestic product, which is the market value of the goods and services produced by labor and property located in the United States. Value added can be measured as gross output (sales or receipts and other operating income plus inventory change) minus intermediate inputs (purchased goods and services). Alternatively, it can be measured as the sum of the costs incurred (except for intermediate inputs) and the profits earned in production. The value-added estimates for U.S. affiliates were prepared by summing cost and profit data collected in the annual and benchmark surveys of foreign direct investment in the United States. The estimates are measures of gross value added rather than measures of net value added because they are calculated without the deduction for the consumption of fixed capital used in production.

The estimates of value added of U.S. affiliates are conceptually consistent with BEA's estimates of U.S. value added by industry.

Data on Foreign Direct Investment in the United States

BEA collects three broad sets of data on foreign direct investment in the United States: (1) Financial and operating data of U.S. affiliates, (2) data on U.S. businesses newly acquired or established by foreign direct investors (new investment data), and (3) international transactions (balance of payments) and direct investment position data. This article presents the financial and operating data. The new investment data were published in "Foreign Direct Investment in the United States: New Investment in 2005" in the June 2006 SURVEY OF CURRENT BUSINESS. The international transactions and direct investment position data were published in the articles "The International Investment Position of the United States at Yearend 2005," "U.S. International Transactions: First Quarter of 2006," and "Direct Investment Positions for 2005: Country and Industry Detail," in the July 2006 SURVEY.

Each of the three data sets focuses on a distinct aspect of foreign direct investment. The financial and operating data provide a picture of the overall activities of the U.S. affiliates; the new investment data provide information about U.S. businesses that are newly acquired or established by foreign direct investors, regardless of whether the invested funds were raised in the United States or abroad; and the international transactions and direct investment position data cover foreign investors' transactions with, and positions in, both new and existing U.S. affiliates. (1)

Financial and operating data of U.S. affiliates. The data on the overall operations of U.S. affiliates are collected in BEA's annual and benchmark surveys of foreign direct investment. Benchmark surveys are BEA's most comprehensive surveys of foreign direct investment in terms of both coverage of companies and subject matter and are conducted every 5 years. The data cover U.S. affiliates' balance sheets and income statements, employment and compensation of employees, trade in goods, research and development expenditures, sources of finance, and selected data by state. In addition, the value added of affiliates is estimated from data reported in these surveys.

Except in benchmark survey years, these data, unlike the new investment data, cover only nonbank affiliates. The financial and operating data for affiliates are on a fiscal year basis. The data cover the entire operations of the U.S. affiliate regardless of the percentage of foreign ownership.

New investment data. The data on outlays by foreign direct investors to acquire or establish affiliates in the United States are collected on a calendar year basis in BEA's annual survey of new foreign direct investment. In addition, the surveys of new investment collect selected data on the operations of the newly acquired or established affiliates. For newly acquired affiliates, these data are for (or as of the end of) the most recent fiscal year preceding the acquisition, and for newly established businesses, they are projected for (or as of the end of) the first year of operation. The data cover the entire operations of the business irrespective of the percentage of foreign ownership.

International transactions and direct investment position data. These data are collected in the quarterly surveys of foreign direct investment. The data cover the U.S. affiliate's transactions and positions with its foreign parent and with other members of its foreign parent group, so these data focus on the foreign parent's share, or interest, in the affiliate rather than on the affiliate's overall size or level of operations. The major items included in the U.S. international transactions (balance of payments) accounts are direct investment financial flows, direct investment income, royalties and license fees, and other services transactions with the foreign parent group.

(1.) For a more detailed discussion of the differences between these three sets of data, see Alicia M. Quijano, "A Guide to BEA Statistics on Foreign Direct Investment in the United States," SURVEY 70 (February 1990): 29-37; <www.bea.gov/bea/mp_international.htm>.

For a comparison of the data on affiliate operations with the data on new investment, see the appendix "Sources of Data" in Mahnaz Fahim-Nader and William J. Zeile, "Foreign Direct Investment in the United States: New Investment in 1994 and Affiliate Operations in 1993," SURVEY 75 (May 1995): 68-70; <www.bea.gov/bea/pubs.htm>.

Using Employment Data To Estimate Affiliate Shares of the U.S. Economy by Industry

The data on employment are used to estimate affiliate shares of the U.S. economy by industry on the basis of the North American Industry Classification System (NAICS) because these data can be disaggregated by industry of sales, a basis that approximates the disaggregation of the data for all U.S. businesses by industry of establishment. (1) Thus, using the data on affiliate employment, the affiliate shares of the U.S. economy can be calculated at a greater level of industry detail than is possible using the value-added estimates or other data, which can only be disaggregated on the basis of industry of affiliate. (2)

In the classification by industry of sales, the data on affiliate employment and sales are distributed among all of the industries in which the affiliate reports sales. As a result, employment classified by industry of sales should approximate that classified by industry of establishment (or plant), because an affiliate that has an establishment in an industry usually also has sales in that industry. (3)

In contrast, in the classification by industry of affiliate, all of the operations data (including the employment data) for an affiliate are assigned to that affiliate's "primary" industry--that is, the industry in which it has the most sales. (4) As a result, any affiliate operations that take place in secondary industries will be classified as operations in the primary industry.

(1.) The data for all U.S. businesses used to compute the affiliate shares of employment by NAICS industry are from the national income and product accounts (see table 5, footnote 1).

(2.) Establishment-level data from a joint project of BEA and the Census Bureau can be used to calculate affiliate shares at an even greater level of detail. For affiliate shares based on establishment data for six-digit manufacturing and five-digit nonmanufacturing NAICS industries for 1997, see Foreign Direct Investment in the United States: Establishment Data for 1997 at <www.bea.gov/bea/ai/iidguide.htm#page15>. Similar data on a Standard Industrial Classification basis for 1987 and 1992 are also available. Data only for manufacturing industries are available for 1988-91. The data for foreign-owned establishments are analyzed in SURVEY articles at <www.bea.gov/bca/ai/ iidguide.htm#pagel5>.

(3.) However, this is not the case if one establishment of an affiliate provides all of its output to another establishment of that affiliate. For example, if an affiliate operates both a metal mine and a metal-manufacturing plant and if the entire output of the mine is used by the manufacturing plant, all of the affiliate's sales would be in metal manufacturing, and none, in metal mining. Thus, when the affiliate's employment is distributed by industry of sales, all of it would be classified in manufacturing, even though some of the employees work in an establishment in mining.

(4.) An affiliate's primary industry is based on a breakdown of the affiliate's sales by BEA's NAICS-based International Surveys Industry classification.

Data Availability

This article summarizes the preliminary estimates from the 2004 annual survey of foreign direct investment in the United States. More detailed estimates will be posted this fall in fries that can be downloaded at no charge from BEA's Web site at <www.bea.gov>. Revised estimates will be released next year.

Detailed estimates of U.S. affiliate operations for 1977-2003 are also available on BEA's Web site.

For more information on these products and how to order them, see the International Investment Division Product Guide at <www.bea.gov/bea/ai/ iidguide.htm>.

(1.) This article focuses on the operations of nonbank U.S. affiliates that are majority-owned by foreign direct investors. The Bureau of Economic Analysis (BEA) also collects annual data on the operations of nonbank U.S. affiliates that are owned 50 percent or less by foreign direct investors; however, beginning with the 2002 benchmark survey, the data for these affiliates are less extensive than the data for majority-owned affiliates. (Data on the operations of bank affiliates are collected only in benchmark survey years.) Selected data on the operations of all (majority-owned and minority-owned) nonbank U.S. affiliates are presented in tables that can be accessed on BEA's Web site at <www.bea.gov/bea/di/dilfdiop.htm>. In 2004, majority-owned nonbank U.S. affiliates accounted for 92 percent of the employment of all nonbank U.S. affiliates.

(2.) Outlays by foreign direct investors to acquire or establish businesses in the United States, which exceeded $200 billion in each year in 1998-2000, totaled less than $90 billion in each of the years 2002-2004. The outlays for new investment had peaked at $336 billion in 2000 before falling to $147 billion in 2001; see Lawrence R. McNeil, "Foreign Direct Investment in the United States: New Investment in 2005," SURVEY OF CURRENT BUSINESS 86 (June 2006): 32-39.

(3.) Because U.S. affiliates tend to be concentrated in industrial sectors with relatively high value added per employee (such as manufacturing and wholesale trade), their share of U.S. employment has consistently been lower than their share of U.S. value added.

(4.) The negative effect of selloffs on affiliate value added was relatively small, because the companies that were sold off had relatively low value added per employee.

(5.) The rate of change in U.S. value added in private industries serves as a convenient benchmark against which the increase in U.S.-affiliate value added can be evaluated. However, the two growth rates are not strictly comparable, because the growth rate of U.S.-affiliate value added partly reflects changes in ownership that do not represent changes in production for the whole economy. Similarly, changes in U.S.-affiliate employment, exports, and imports partly reflect changes in ownership. Thus, they are not strictly comparable with the corresponding changes for the whole economy.

(6.) A corporate inversion occurs when a U.S. multinational corporation forms a corporation, typically in a foreign low- or no-tax country, and simultaneously "inverts" the corporate chain of ownership, so that the new foreign corporation becomes the parent company and the U.S.-based company becomes its affiliate. The American lobs Creation Act of 2004 eliminated tax incentives associated with some types of inversions, and probably partly as a consequence of the enactment of the act in October 2004, few corporate inversions subsequently occurred.

(7.) Government-owned affiliates also accounted for large shares of total value added for U.S. affiliates of a number of smaller investing countries, most notably China, Kuwait, and the United Arab Emirates.

(8.) Affiliates are classified on the basis of the 2002 revision of the North American Industry Classification System.

(9.) Each U.S. affiliate is classified in the industry that accounts for the largest portion of its sales; however, many large affiliates are involved in a variety of business activities. Changes in value added (or other measures of affiliate operations) by industry of affiliate may thus reflect changes in activities outside of the industry of classification.

(10.) For affiliates involved in a variety of business activities, an affiliate's industry classification may change as a result of changes in the mix of these activities.

(11.) The estimates of shares are based on affiliate employment broken down by industry of sales; this basis approximates the establishment-based disaggregation of the corresponding data for all U.S. businesses. See the box "Using Employment Data to Estimate Affiliate Shares of the U.S. Economy by Industry" Because employment by industry of sales more closely reflects the industrial composition of affiliate business activities than data by industry of affiliate, the industry presentation in this section is more detailed than that presented in the section on value added by industry of affiliate.

(12.) A portion of the remaining trade, trade between U.S. parent companies and their majority-owned foreign affiliates, is also intrafirm trade. Together, the intrafirm trade of foreign-owned U.S. affiliates and the intrafirm trade of U.S. multinational companies have accounted for 30-36 percent of U.S. exports and for 36-40 percent of U.S. imports. See William J. Zeile, "Trade in Goods Within Multinational Companies: Survey-Based Data and Findings for the United States of America" (paper prepared for the Organisation for Economic Co-operation and Development Committee on Industry and Business Environment Working Party on Statistics, Session on Globalisation, Paris, November 3-4, 2003); <www.bea.gov/hca/ papers.htm>.

(13.) Although wholesale trade affiliates have consistently accounted for a dominant share of the affiliate import-export gap, their shares of both affiliate exports and imports have declined since the late 1980s. Their share of affiliate exports declined from 66 percent in 1987 to 39 percent in 2004, and their share of affiliate imports declined from 78 percent in 1987 to 60 percent in 2004. One reason for this change is the reorientation of some wholesale trade affiliates from the import of manufactured goods for sale in the United States to the manufacture of goods at U.S. facilities.

(14.) Data on U.S. imports of goods by supplying country indicate that about half of the increase in U.S. imports in 2004 was accounted for by three trading partners--Canada, Mexico, and China--for which the affiliate shares of U.S. imports have been consistently low relative to the affiliate share of total U.S. imports. Data on the origin of U.S.-affiliate imports, which were collected most recently in the 2002 benchmark survey, indicate that affiliates accounted for 18 percent of U.S. imports from Canada, 13 percent of U.S. imports from Mexico, and 3 percent of U.S. imports from China.

(15.) See William J. Zeile, "U.S. Affiliates of Foreign Companies: Operations in 2003," SURVEY 85 (August 2005): 198-214.

Table 1. Value Added and Employment of Majority-Owned
Nonbank U.S. Affiliates of Foreign Companies, 1988-2004

                 Value added                    Employment

                        As a percentage                As a percentage
            Millions    of U.S. private   Thousands    of U.S. private
           of dollars   industry value    of workers      industry
                             added                       employment

1988          146,424              3.8       3,119.0              3.5
1989          168,547              4.0       3,573.4              3.9
1990          190,477              4.3       3,841.7              4.2
1991          207,126              4.6       3,991.3              4.4
1992          214,781              4.5       3,903.9              4.3
1993          223,008              4.4       3,851.7              4.1
1994          244,690              4.5       3,954.0              4.1
1995          254,938              4.5       4,022.6              4.0
1996          283,422              4.7       4,155.6              4.1
1997          313,655              4.9       4,269.1              4.1
1998          353,860              5.2       4,669.5              4.3
1999          397,295              5.6       5,064.3              4.6
2000          447,287              5.9       5,656.5              5.0
2001          417,122              5.4       5,594.3              4.9
2002          460,609              5.8       5,425.4              4.9
2003 (r)      475,062              5.7       5,244.4              4.7
2004 (p)      514,957              5.7       5,116.4              4.5

                       Percent change from preceding year

1989            15.1               ...         14.6               ...
1990            13.0               ...          7.5               ...
1991             8.7               ...          3.9               ...
1992             3.7               ...         -2.2               ...
1993             3.8               ...         -1.3               ...
1994             9.7               ...          2.7               ...
1995             4.2               ...          1.7               ...
1996            11.2               ...          3.3               ...
1997            10.7               ...          2.7               ...
1998            12.8               ...          9.4               ...
1999            12.3               ...          8.5               ...
2000            12.6               ...         11.7               ...
2001            -6.7               ...         -1.1               ...
2002            10.4               ...         -3.0               ...
2003 (r)         3.1               ...         -3.3               ...
2004 (p)         8.4               ...         -2.4               ...

(p) Preliminary

(r) Revised

NOTE: For improved comparability with U.S. affiliate value added, U.S.
private industry value added was adjusted to exclude value added in
depository institutions and private households, imputed rental income
from owner-occupied housing, and business transfer payments. For the
latest estimates of U.S. private industry value added, see Thomas F.
Howells III and Kevin B. Barefoot, "Annual Industry Accounts: Advanced
Estimates for 2005," SURVEY of CURRENT BUSINESS 86 (May 2006): 11-24.

For improved comparability with U.S.-affiliate employment, U.S. private
industry employment was adjusted to exclude employment in depository
institutions and private households. For consistency with the coverage
of the data on U.S. private industry employment, U.S.-affiliate
employment in Puerto Rico, in "other U.S. areas," and in "foreign" was
excluded from the U.S. affiliate total when the employment shares were
computed.

Table 2. Value Added of Majority-Owned Nonbank U.S. Affiliates
by Country of Ultimate Beneficial Owner, 1999-2004

                                             Millions of dollars

                                        1999        2000       2001

    All countries                      397,295    447,287    417,122

Canada                                  36,400     36,928     31,702

Europe                                 261,473    299,251    270,144
  Belgium                                5,177      5,526      5,925
  Denmark                                  884      1,282      1,188
  Finland                                  (D)      3,218        (D)
  France                                31,790     38,763     35,444
  Germany                               61,569     51,524     46,882
  1Ireland                                 (D)        (D)      3,109
  Italy                                  4,149      4,765      4,665
  Netherlands                           31,482     43,745     36,188
  Sweden                                10,559     10,678     10,803
  Switzerland                           25,996     35,225     29,097
  United Kingdom                        80,391     98,282     89,151
  Other                                  4,046        (D)        (D)

Latin America and Outer
    Western Hemisphere                  19,120     25,036     30,075
  Bermuda                                8,566     11,697     14,949
  Mexico                                 1,447      2,746      2,660
  United Kingdom Islands, Caribbean      1,577      1,658      2,022
  Venezuela                                (D)        (D)         (0)
  Other                                    (D)        (D)        (D)

Africa                                   1,211      1,051        (D)

Middle East                              2,131      2,402      8,308
  Saudi Arabia                             500        328      6,307
  Other                                  1,631      2,074      2,000

Asia and Pacific                        71,836     77,594     69,960
  Australia                              7,216      6,109      6,224
  Japan                                 57,622     63,622     57,735
  Korea, Republic of                     1,957      2,372      1,303
  Other                                  5,041      5,491      4,698

United States                            5,124      5,024        (D)

                                             Millions of dollars

                                        2002        2003       2004

    All countries                      460,609    475,062    514,957

Canada                                  35,496     35,486     40,333

Europe                                 299,965    313,054    336,453
  Belgium                                6,997      6,927      7,895
  Denmark                                2,738      3,019      3,258
  Finland                                3,877      3,709      3,808
  France                                40,947     41,186     43,071
  Germany                               59,434     63,242     66,424
  1Ireland                               3,291      3,226      3,654
  Italy                                  5,824      5,380      6,181
  Netherlands                           39,102     43,327     43,775
  Sweden                                11,972     12,088     12,540
  Switzerland                           30,809     31,217     32,430
  United Kingdom                        90,124     94,230    107,220
  Other                                  4,850      5,501      6,196

Latin America and Outer
    Western Hemisphere                  36,737     34,453     38,609
  Bermuda                               21,745     18,541     21,619
  Mexico                                 3,299      2,964      3,167
  United Kingdom Islands, Caribbean      1,995      2,487      2,200
  Venezuela                                (D)        (D)        (D)
  Other                                    (D)        (D)        (D)

Africa                                     981        916      1,101

Middle East                              7,439      8,391      9,502
  Saudi Arabia                           5,105      5,615      6,428
  Other                                  2,334      2,776      3,073

Asia and Pacific                        74,947     77,155     83,322
  Australia                              6,565      8,121      9,462
  Japan                                 61,099     62,168     66,054
  Korea, Republic of                     2,094      1,993      2,422
  Other                                  5,188      4,873      5,383

United States                            5,044      5,608      5,638

                                      Percentage of all-countries total

                                          1999       2000       2001

    All countries                        100.0      100.0      100.0

Canada                                     9.2        8.3        7.6

Europe                                    65.8       66.9       64.8
  Belgium                                  1.3        1.2        1.4
  Denmark                                  0.2        0.3        0.3
  Finland                                  (D)        0.7        (D)
  France                                   8.0        8.7        8.5
  Germany                                 15.5       11.5       11.2
  1Ireland                                 (D)        (D)        0.7
  Italy                                    1.0        1.1        1.1
  Netherlands                              7.9        9.8        8.7
  Sweden                                   2.7        2.4        2.6
  Switzerland                              6.5        7.9        7.0
  United Kingdom                          20.2       22.0       21.4
  Other                                    1.0        (D)        (D)

Latin America and Outer
    Western Hemisphere                     4.8        5.6        7.2
  Bermuda                                  2.2        2.6        3.6
  Mexico                                   0.4        0.6        0.6
  United Kingdom Islands, Caribbean        4.0        0.4        0.5
  Venezuela                                (D)        (D)        (D)
  Other                                    (D)        (D)        (D)

Africa                                     0.3        0.2        (D)

Middle East                                0.5        0.5        2.0
  Saudi Arabia                             0.1        0.1        1.5
  Other                                    0.4        0.5        0.5

Asia and Pacific                          18.1       17.3       16.8
  Australia                                1.8        1.4        1.5
  Japan                                   14.5       14.2       13.8
  Korea, Republic of                       0.5        0.5        0.3
  Other                                    1.3        1.2        1.1

United States                              1.3        1.1        (D)

                                      Percentage of all-countries total

                                          2002       2003       2004

    All countries                        100.0      100.0      100.0

Canada                                     7.7        7.5        7.8

Europe                                    65.1       65.9       65.3
  Belgium                                  1.5        1.5        1.5
  Denmark                                  0.6        0.6        0.6
  Finland                                  0.8        0.8        0.7
  France                                   8.9        8.7        8.4
  Germany                                 12.9       13.3       12.9
  1Ireland                                 0.7        0.7        0.7
  Italy                                    1.3        1.1        1.2
  Netherlands                              8.5        9.1        8.5
  Sweden                                   2.6        2.5        2.4
  Switzerland                              6.7        6.6        6.3
  United Kingdom                          19.6       19.8       20.8
  Other                                    1.1        1.2        1.2

Latin America and Outer
    Western Hemisphere                     8.0        7.3        7.5
  Bermuda                                  4.7        3.9        4.2
  Mexico                                   0.7        0.6        0.6
  United Kingdom Islands, Caribbean        0.4        0.5        0.4
  Venezuela                                (D)        (D)        (D)
  Other                                    (D)        (D)        (D)

Africa                                     0.2        0.2        2.0

Middle East                                1.6        1.8        1.8
  Saudi Arabia                             1.1        1.2        1.2
  Other                                    0.5        0.6        0.6

Asia and Pacific                          16.3       16.2       16.2
  Australia                                1.4        1.7        1.8
  Japan                                   13.3       13.1       12.8
  Korea, Republic of                       0.5        0.4        0.5
  Other                                    1.1        1.0        1.0

United States                              1.1        1.2        1.1

                                      Addendum:
                                       Percent
                                       changer
                                      affiliate
                                        value
                                       added,
                                      2003-2004

    All countries                          8.4

Canada                                    13.7

Europe                                     7.5
  Belgium                                 14.0
  Denmark                                  7.9
  Finland                                  2.7
  France                                   5.0
  Germany                                  5.0
  1Ireland                                13.3
  Italy                                   14.9
  Netherlands                              1.0
  Sweden                                   3.7
  Switzerland                              3.9
  United Kingdom                          13.8
  Other                                   12.6

Latin America and Outer
    Western Hemisphere                    12.1
  Bermuda                                 16.6
  Mexico                                   6.9
  United Kingdom Islands, Caribbean      -11.6
  Venezuela                                (D)
  Other                                    (D)

Africa                                    20.3

Middle East                               13.2
  Saudi Arabia                            14.5
  Other                                   10.7

Asia and Pacific                           8.0
  Australia                               16.6
  Japan                                   21.6
  Korea, Republic of                      21.6
  Other                                   10.5

United States                              0.5

(D) Suppressed to avoid disclosure of data of individual companies.

Table 3. Value Added of Majority-Owned Nonbank U.S. Affiliates
by Industry of Ultimate Beneficial Owner, 2002-2004

                                                 Millions of dollars

                                            2002      2003      2004

    All industries                         460,609   475,062   514,957

Government and government-related
    entities                                13,626    15,755    17,372
  Government and government-owned
    enterprises                             13,635    15,710    17,344
  Pension funds--government run                 -9        44        28
Individuals, estates, and trusts            39,619    42,400    42,647
Mining                                      16,121    19,597    22,699
Manufacturing                              252,240   248,078   268,606
Wholesale and retail trade                  31,483    32,433    34,131
Information                                 19,144    19,548    24,046
Depository institutions and bank holding
  companies                                  8,631     6,788     9,007
Finance (except depository institutions)
  and insurance                              8,712    18,489    19,360
Professional, scientific, and technical
  services                                  13,076    13,726    13,575
Other                                       44,331    42,494    46,142

                                                   Percentage of
                                                all industries total

                                              2002      2003      2004

    All industries                           100.0     100.0     100.0

Government and government-related
    entities                                   3.0       3.3       3.4
  Government and government-owned
    enterprises                                3.0       3.3       3.4
  Pension funds--government run                (*)       (*)       (*)
Individuals, estates, and trusts               8.6       8.9       8.3
Mining                                         3.5       4.1       4.4
Manufacturing                                 54.8      52.2      52.2
Wholesale and retail trade                     6.8       6.8       6.6
Information                                    4.2       4.1       4.7
Depository institutions and bank holding
  companies                                    1.9       1.4       1.7
Finance (except depository institutions)
  and insurance                                1.9       3.9       3.8
Professional, scientific, and technical
  services                                     2.8       2.9       2.6
Other                                          9.6       8.9       9.0

(*) Non-zero values between -0.05 and 0.05.

Table 4. Value Added of Majority-Owned Nonbank U.S.
Affiliates by Industry of Affiliate, 1999-2004

                                              Millions of dollars

                                          1999        2000       2001

      All Industries                     397,295    447,287    417,122

Manufacturing                            219,141    215,684    200,506
  Food                                    10,095     10,710     10,832
  Beverages and tobacco products             (D)        (D)        (D)
  Petroleum and coal products                (D)        (D)        (D)
  Chemicals                               37,698     41,016     39,512
  Plastics and rubber products             9,326      8,727      7,636
  Nonmetallic mineral products            12,805     14,952     14,367
  Primary metals                           6,214      8,299      8,254
  Fabricated metal products                6,561      7,279      6,382
  Machinery                               13,803     18,382     19,077
  Computers and electronic products       23,095     26,936     21,004
  Electrical equipment, appliances,
    and components                        10,011     16,359     12,536
  Transportation equipment                41,227     30,358     29,048
  Other                                      (D)        (D)        (D)

Wholesale trade                           55,536     81,413     81,462
  Petroleum and petroleum products         5,427        (D)        (D)
  Other                                   50,109        (D)        (D)
Retail trade                              19,938     22,308     24,800
Information                               16,841     19,427      8,247
Finance (except depository
  institutions) and insurance             21,029     34,730     17,305
Real estate and rental and leasing         9,302      9,323      9,502
Professional, scientific,
  and technical services                   7,526      8,553     14,923
Other industries                          45,983     55,848     60,377

                                               Millions of dollars

                                          2002        2003       2004

      All Industries                     460,609    475,062    514,957

Manufacturing                            229,245    220,637    239,641
  Food                                    14,303      9,268      9,991
  Beverages and tobacco products           5,678      7,142      8,377
  Petroleum and coal products                (D)     18,373     21,340
  Chemicals                               45,034     47,307     49,917
  Plastics and rubber products             9,460      9,553     10,682
  Nonmetallic mineral products            15,144     14,913     16,582
  Primary metals                           5,590      4,029      9,758
  Fabricated metal products                7,390      7,767      6,285
  Machinery                               21,055     19,712     21,136
  Computers and electronic products       23,082     18,782     18,946
  Electrical equipment, appliances,
    and components                         4,481      5,235      4,894
  Transportation equipment                36,848     34,800     36,651
  Other                                      (D)     23,755     25,081

Wholesale trade                           75,657     86,568     92,485
  Petroleum and petroleum products        27,138     30,290     33,147
  Other                                   48,519     56,278     59,338
Retail trade                              26,486     27,843     28,989
Information                               24,297     26,049     30,975
Finance (except depository
  institutions) and insurance             15,216     22,961     24,957
Real estate and rental and leasing         9,647      9,928     10,965
Professional, scientific,
  and technical services                  16,426     16,694     16,881
Other industries                          63,634     64,383     70,062

                                     Percentage of all-industries total

                                            1999       2000       2001

      All Industries                       100.0      100.0      100.0

Manufacturing                               55.2       48.2       48.1
  Food                                       2.5        2.4        2.6
  Beverages and tobacco products             (D)        (D)        (D)
  Petroleum and coal products                (D)        (D)        (D)
  Chemicals                                  9.5        9.2        9.5
  Plastics and rubber products               2.3        2.0        1.8
  Nonmetallic mineral products               3.2        3.3        3.4
  Primary metals                             1.6        1.9        2.0
  Fabricated metal products                  1.7        1.6        1.5
  Machinery                                  3.5        4.1        4.6
  Computers and electronic products          5.8        6.0        5.0
  Electrical equipment, appliances,
    and components                           2.5        3.7        3.0
  Transportation equipment                  10.4        6.8        7.0
  Other                                      (D)        (D)        (D)

Wholesale trade                             14.0       18.2       19.5
  Petroleum and petroleum products           1.4        (D)        (D)
  Other                                     12.6        (D)        (D)
Retail trade                                 5.0        5.0        5.9
Information                                  4.7        4.3        2.0
Finance (except depository
  institutions) and insurance                5.3        7.8        4.1
Real estate and rental and leasing           2.3        2.1        2.3
Professional, scientific,
  and technical services                     1.9        1.9        3.6
Other industries                            11.6       12.5       14.5

                                     Percentage of all-industries total

                                            2002       2003       2004

      All Industries                       100.0      100.0      100.0

Manufacturing                               49.8       46.4       46.5
  Food                                       3.1        2.0        1.9
  Beverages and tobacco products             1.2        1.5        1.6
  Petroleum and coal products                (D)        3.9        4.1
  Chemicals                                  9.8       10.0        9.7
  Plastics and rubber products               2.1        2.0        2.1
  Nonmetallic mineral products               3.3        3.1        3.2
  Primary metals                             1.2        0.8        1.9
  Fabricated metal products                  1.6        4.1        1.2
  Machinery                                  4.6        4.0        4.1
  Computers and electronic products          5.0        4.0        3.7
  Electrical equipment, appliances,
    and components                           1.0       11.0        1.0
  Transportation equipment                   8.0        7.3        7.1
  Other                                      (D)        5.0        4.9

Wholesale trade                             16.4       18.2       18.1
  Petroleum and petroleum products           5.9        6.4        6.4
  Other                                     10.5       11.8       11.5
Retail trade                                 5.8        5.9        5.6
Information                                  5.3        5.5        6.0
Finance (except depository
  institutions) and insurance                3.3        4.8        4.8
Real estate and rental and leasing           2.1        2.1        2.1
Professional, scientific,
  and technical services                     3.6        3.5        3.3
Other industries                            13.8       13.6       13.6

                                        Addendum:
                                         Percent
                                        change in
                                        affiliate
                                          value
                                         added,
                                        2003-2004

      All Industries                         8.4

Manufacturing                                8.6
  Food                                       7.8
  Beverages and tobacco products            17.3
  Petroleum and coal products               16.1
  Chemicals                                  5.5
  Plastics and rubber products              11.8
  Nonmetallic mineral products              11.2
  Primary metals                           142.2
  Fabricated metal products                -19.1
  Machinery                                  7.2
  Computers and electronic products          0.9
  Electrical equipment, appliances,
    and components                          -6.5
  Transportation equipment                   5.3
  Other                                      5.6

Wholesale trade                              6.7
  Petroleum and petroleum products           9.4
  Other                                      5.4
Retail trade                                 4.1
Information                                 18.9
Finance (except depository
  institutions) and insurance                8.7
Real estate and rental and leasing          10.5
Professional, scientific,
  and technical services                     1.1
Other industries                             8.8

(D) Suppressed to avoid disclosure of data of individual companies.

Table 5. Employment by Majority-Owned Nonbank
U.S. Affiliates by Industry of Sales, 1999-2004

                                            Thousands of employees

                                          1999       2000       2001

      All industries (2)                5,064.3    5,656.5    5,594.3
Agriculture, forestry,
  fishing, and hunting                     13.7       12.7       12.1
Mining, excluding oil
  and gas extraction                       52.5       54.4       60.4
Utilities                                   6.9       24.8       19.7
Construction                               67.5       69.6       79.8

Manufacturing (3)                       2,059.6    2,139.1    1,956.7
  Food and beverage and
    tobacco products                        (M)        (M)        (M)
  Textile mills and textile
    product mills                           (K)       25.2        (J)
  Apparel and leather and
    allied products                         (J)        (J)        (J)
  Wood products                            11.4       19.7       19.9
  Paper                                     (K)        (K)        (K)
  Printing and related support
    activities                             48.3        (L)       53.8
  Petroleum and coal products              29.2       25.2       22.8
  Chemicals                               269.7      261.2      247.7
  Plastics and rubber products            126.1      132.9      126.1

  Nonmetallic mineral products            115.6      125.6      122.4
  Primary metals                           83.1       85.2       78.4
  Fabricated metal products                99.8      108.7      112.5
  Machinery                               199.3      204.4      184.1
  Computers and electronic products       262.0      286.9      240.6
  Electrical equipment, appliances,
    and components                        126.0      118.2      103.7

  Motor vehicles, bodies and
    trailers, and parts                   315.1      322.8      275.9
  Other transportation equipment           37.4       46.1       48.1
  Furniture and related products           15.3       15.1       15.1
  Miscellaneous manufacturing              72.8       80.7       80.3

Wholesale trade                           363.3      407.0      440.3
Retail trade                              589.4      641.8      643.1
Transportation and warehousing            169.1      213.7      228.7
Information                               205.8      212.6      196.1

Finance (except depository
    institutions) and insurance           225.2      264.8      274.0
  Finance, except depository
    institutions                           91.6        (M)      142.6
  Insurance carriers and related
    activities                            133.6        (M)      131.4
Real estate and rental and leasing         49.3       43.2      429.0
Professional, scientific,
  and technical services                  147.6      199.0      225.4
Management of nonbank companies
  and enterprises                           1.8        2.0        2.2
Administration, support,
  and waste management                    403.8      590.0      546.7

Educational services                        (I)        (I)        7.6
Health care and social assistance          71.9        (L)        (L)
Arts, entertainment, and recreation        37.4       36.2       36.0
Accommodation and food services           255.1        (M)      324.8
Other services, except government           (K)        (K)        (K)

Auxiliaries                               271.0      289.3      326.6

Unspecified (5)                            21.8       40.9       28.3

                                            Thousands of employees

                                          2002       2003       2004

      All industries (2)                5,425.4    5,244.4    5,116.4
Agriculture, forestry,
  fishing, and hunting                     10.3        8.9        8.1
Mining, excluding oil
  and gas extraction                       79.8       62.2       59.7
Utilities                                  31.6       33.7       31.4
Construction                               81.5       82.2       81.0

Manufacturing (3)                       1,844.1    1,769.4    1,707.6
  Food and beverage and
    tobacco products                      135.9      156.8      139.3
  Textile mills and textile
    product mills                          18.3      153.0       15.0
  Apparel and leather and
    allied products                         7.0        5.5        5.5
  Wood products                            17.9       12.0       12.5
  Paper                                    41.7       46.0       45.8
  Printing and related support
    activities                             50.6       54.4       45.0
  Petroleum and coal products              21.7       37.2       34.2
  Chemicals                               264.9      254.1      250.1
  Plastics and rubber products            121.6      118.4      117.1

  Nonmetallic mineral products            117.2      119.7      119.1
  Primary metals                           61.8       56.0       60.4
  Fabricated metal products               103.4       90.0       91.8
  Machinery                               172.0      161.1      146.2
  Computers and electronic products     1,981.0      154.1      150.4
  Electrical equipment, appliances,
    and components                        101.0       83.6       80.2

  Motor vehicles, bodies and
    trailers, and parts                   268.5      277.7      267.9
  Other transportation equipment           47.2       45.0       48.7
  Furniture and related products           11.5       11.2       12.5
  Miscellaneous manufacturing              83.9       71.4       65.9

Wholesale trade                           438.6      411.1      420.4
Retail trade                              605.4      576.1      598.5
Transportation and warehousing            247.3      199.3      202.2
Information                               206.4      215.0      198.1

Finance (except depository
    institutions) and insurance           230.7      227.0      190.9
  Finance, except depository
    institutions                          100.9      109.4       86.8
  Insurance carriers and related
    activities                            129.8      117.6      104.1
Real estate and rental and leasing         38.8       37.6       39.1
Professional, scientific,
  and technical services                  215.7      233.7      235.6
Management of nonbank companies
  and enterprises                           3.1        3.0        3.6
Administration, support,
  and waste management                    547.9      508.8      478.7

Educational services                        5.0        5.9        6.5
Health care and social assistance         103.5       77.6       79.7
Arts, entertainment, and recreation        33.6       33.9       33.3
Accommodation and food services           326.1      333.3      321.3
Other services, except government          27.8       53.9       48.3

Auxiliaries                               313.6      331.4      322.0

Unspecified (5)                            34.6       40.4       50.1

                                            Percentage of total U.S.
                                             employment in nonbank
                                             private industries (1)

                                           1999       2000       2001

      All industries (2)                    4.6        5.0        4.9
Agriculture, forestry,
  fishing, and hunting                      0.9        0.9        0.8
Mining, excluding oil
  and gas extraction                       13.7       13.8       14.6
Utilities                                   1.1        4.1        3.3
Construction                                1.0        1.0        1.1

Manufacturing (3)                          11.8       12.2       11.7
  Food and beverage and
    tobacco products                        (D)        (D)        (D)
  Textile mills and textile
    product mills                           (D)        4.2        (D)
  Apparel and leather and
    allied products                         (D)        (D)        (D)
  Wood products                             1.8        3.1        3.4
  Paper                                     (D)        (D)        (D)
  Printing and related support
    activities                             -5.8        (D)        6.9
  Petroleum and coal products              11.3       10.1        9.3
  Chemicals                                27.6       26.5       25.8
  Plastics and rubber products             13.4       13.9       14.1

  Nonmetallic mineral products             21.4       22.3       22.4
  Primary metals                           13.5       13.7       13.7
  Fabricated metal products                 5.8        6.1        6.7
  Machinery                                13.7       13.9       13.4
  Computers and electronic products        14.9       15.8       13.7
  Electrical equipment, appliances,
    and components                         21.6       19.9       18.7

  Motor vehicles, bodies and
    trailers, and parts                    24.2       24.5       22.8
  Other transportation equipment            4.9        6.2        6.7
  Furniture and related products            2.3        2.2        2.3
  Miscellaneous manufacturing               9.8       10.5       10.9

Wholesale trade                             6.1        6.9        7.6
Retail trade                                3.9        4.1        4.2
Transportation and warehousing              3.9        5.8        5.4
Information                                 6.1        6.4        6.6

Finance (except depository
    institutions) and insurance             5.5        6.4        6.6
  Finance, except depository
    institutions                            5.1        (D)        7.7
  Insurance carriers and related
    activities                              5.9        (D)        5.8
Real estate and rental and leasing          2.4        2.1        2.0
Professional, scientific,
  and technical services                    2.1        2.6        3.1
Management of nonbank companies
  and enterprises                           0.1        0.2        0.1
Administration, support,
  and waste management                      4.7        (D)        7.0

Educational services                        (D)        (D)        0.3
Health care and social assistance           0.6        (D)        (D)
Arts, entertainment, and recreation         2.2        2.0        1.9
Accommodation and food services             2.6        (D)        3.2
Other services, except government           (D)        (D)        (D)

Auxiliaries                                n.a.       n.a.       n.a.

Unspecified (5)                            n.a.       n.a.       n.a.

                                            Percentage of total U.S.
                                             employment in nonbank
                                             private industries (1)

                                           2002       2003       2004

      All industries (2)                    4.9        4.7        4.5
Agriculture, forestry,
  fishing, and hunting                      0.7        0.6        0.5
Mining, excluding oil
  and gas extraction                       20.6       16.2       14.9
Utilities                                   5.3        5.8        5.5
Construction                                1.2        1.2        1.1

Manufacturing (3)                          11.9       12.0       11.8
  Food and beverage and
    tobacco products                        7.7        9.1        8.2
  Textile mills and textile
    product mills                           3.7        3.4        3.6
  Apparel and leather and
    allied products                         1.7        1.5        1.6
  Wood products                             3.1        2.2        2.2
  Paper                                     7.7        8.9        9.3
  Printing and related support
    activities                              7.0        7.9        6.7
  Petroleum and coal products               9.0       15.8       14.6
  Chemicals                                28.6       28.0       28.2
  Plastics and rubber products             14.3       14.5       14.5

  Nonmetallic mineral products             22.5       24.0       23.7
  Primary metals                           12.2       11.8       12.9
  Fabricated metal products                 6.7        6.1        6.1
  Machinery                                14.0       14.0       12.8
  Computers and electronic products        13.2       11.4       11.4
  Electrical equipment, appliances,
    and components                         20.3       18.2       18.0

  Motor vehicles, bodies and
    trailers, and parts                    23.3       24.9       24.0
  Other transportation equipment            7.0        7.0        7.5
  Furniture and related products            1.9        1.9        2.2
  Miscellaneous manufacturing              11.8       10.4        9.8

Wholesale trade                             7.7        7.2        7.3
Retail trade                                3.9        3.7        3.8
Transportation and warehousing              5.8        4.7        4.7
Information                                 6.1        6.7        6.3

Finance (except depository
    institutions) and insurance             5.6        5.4        4.5
  Finance, except depository
    institutions                            5.4        5.7        4.5
  Insurance carriers and related
    activities                              5.7        5.1        4.5
Real estate and rental and leasing          1.8        1.8        1.8
Professional, scientific,
  and technical services                    3.0        3.3        3.3
Management of nonbank companies
  and enterprises                           0.2        0.2        0.2
Administration, support,
  and waste management                      7.2        6.7        6.1

Educational services                        0.2        0.2        0.2
Health care and social assistance           0.7        0.5        0.5
Arts, entertainment, and recreation         1.8        1.8        1.7
Accommodation and food services             3.2        3.2        3.0
Other services, except government           0.4        0.8        0.7

Auxiliaries                                n.a.       n.a.       n.a.

Unspecified (5)                            n.a.       n.a.       n.a.

(D) Suppressed to avoid disclosure of data of individual companies.

n.a. Not applicable

(1.) The data on U.S. employment in private industries that were
used in calculating these percentages are classified by industry of
establishment. They are from table 5.4D of the "National Income and
Product Account (NIPA) Tables." The total for U.S. employment in
nonbank private industries is equal to employment in private
industries less the employment of depository institutions and private
households. The U.S. private-industry employment totals used to
calculate the affiliate shares in "all industries" in this table
differ from the U.S. employment totals used to calculate affiliate
shares in table 6; the latter are from 8EA's Regional Economic
Information System. The estimates in table 6, unlike those used
for this table. include employment in depository institutions. In
addition, the estimates for table 6, unlike those used for this table,
exclude U.S. residents temporarily employed abroad by U.S. businesses.
They may also differ from NIPA estimates used for "all industries" in
this table because of different definitions and revision schedules.

(2.) For consistency with the coverage of the data on U.S. employment
in private industries, U.S. affiliate employment in Puerto Rico, in
"other U.S. areas," and in "foreign" was excluded from the
U.S.-affiliate employment total when the percentage shares on this line
were computed.

(3.) Total affiliate manufacturing employment and the shares of
all-U.S.-business manufacturing employment accounted for by affiliates
shown in this table differ from those shown in table 7. In this table,
employment is classified by industry of sales. and the total for
manufacturing includes some nonmanufacturing employees (see the box
"Using Employment Data to Estimate Affiliate Shares of the U.S.
Economy by Industry"), whereas in table 7, affiliate manufacturing
employment consists only of employees on the payrolls of manufacturing
plants. Data on the latter basis are not available far the industries
within manufacturing shown in this table. In addition, the total for
manufacturing in this table includes oil and gas extraction, which is
excluded from the total in table 7.

(4.) For both U.S. affiliates and all U.S. businesses, includes oil
and gas extraction. (See note below.)

(5.) This line includes all employment that U.S. affiliates did not
specify in terms of industry of sales when they filled out their
survey forms. Affiliates that filed the long form (that is, affiliates
with assets, sales, or net income or loss greater than $100 million in
1999-2001 and greater than $125 million in 2002-2004) had to specify
only their 10 largest sales categories, and affiliates that filed the
short form had to specify only their 4 largest sales categories.

NOTES: A significant portion of U.S.-affiliate employment in petroleum
and coal products is accounted for by integrated petroleum companies
that have, in addition to their manufacturing employees, substantial
numbers of employees in petroleum extraction; because these employees
cannot be identified separately, they are included in petroleum and
coal products manufacturing. For consistency, employees of affiliates
classified in the "oil and gas extraction without refining" industry
and employees of all U.S. businesses in oil and gas extraction are
also included in petroleum and coal products manufacturing rather
than in mining.

The following ranges are given in employment cells that are
suppressed: (A)--1 to 499; (F)--500 to 999; (G)--1,000 to 2,499;
(H)--2,500 to 4,999; I--5,000 to 9,999; (J)--10,000 to 24,999;
(K)--25,000 to 49,999; (L)--50,000 to 99,999; (M)--100,000 or more.

Table 6. Employment by Majority-Owned Nonbank
U.S. Affiliates by State, 1999-2004

                             Thousands of employees

                           1999       2000       2001

      Total (2)          5,064.3    5,656.5    5,594.3

New England                349.2      420.9      435.3
  Connecticut               93.3      105.5      117.4
  Maine                     22.0       31.7       32.8
  Massachusetts            175.9      207.7      209.9
  New Hampshire             29.9       43.8       41.0
  Rhode Island              19.5       22.2       23.5
  Vermont                    8.6        9.9       10.7

Mideast                    917.5    1,051.2    1,042.2
  Delaware                  24.0       27.7       24.4
  District of Columbia      13.9       14.7       17.7
  Maryland                  88.7      104.6      106.4
  New Jersey               211.3      234.6      239.4
  New York                 348.3      415.8      415.5
  Pennsylvania             231.3      253.9      238.7

Great Lakes                925.5      979.0      941.0
  Illinois                 241.2      277.2      274.2
  Indiana                  144.3      143.8      142.0
  Michigan                 221.2      228.4      204.7
  Ohio                     228.7      228.3      220.8
  Wisconsin                 90.1      101.3       99.3

Plains                     257.9      285.3      300.1
  Iowa                      35.5       36.5       38.8
  Kansas                    33.4       37.8       36.0
  Minnesota                 77.3       90.7       87.8
  Missouri                  81.7       89.4      102.7
  Nebraska                  19.3       19.3       20.1
  North Dakota               4.9        5.2        8.2
  South Dakota               5.8        6.4        6.6

Southeast                1,307.3    1,397.7    1,393.8
  Alabama                   64.1       65.0       75.5
  Arkansas                  31.6       34.7       35.8
  Florida                  210.7      244.2      257.7
  Georgia                  189.3      199.5      195.0
  Kentucky                  82.2       94.1       90.9
  Louisiana                 49.3       51.3       51.1

  Mississippi               19.8       20.0       21.5
  North Carolina           229.4      239.1      223.0
  South Carolina           128.0      129.1      129.1
  Tennessee                132.8      137.7      134.2
  Virginia                 146.5      158.0      154.5
  West Virginia             23.7       25.0       25.7

Southwest                  432.6      492.5      484.7
  Arizona                   53.6       60.8       57.0
  New Mexico                10.2       12.0       13.5
  Oklahoma                  33.4       34.7       40.0
  Texas                    335.3      384.9      374.2

Rocky Mountain             124.8      143.4      136.2
  Colorado                  73.7       88.2       81.3
  Idaho                     11.0       10.8       11.3
  Montana                    9.7        5.0        5.7
  Utah                      25.1       32.2       30.4
  Wyoming                    5.2        7.2        7.5

Far West                   726.4      862.5      832.4
  Alaska                     8.9       10.3       10.5
  California               529.6      638.9      615.2
  Hawaii                    39.4       40.6       38.9
  Nevada                    26.2       30.7       28.2
  Oregon                    46.9       56.0       51.5
  Washington                75.4       86.0       88.1

Puerto Rico                 15.2       16.0       16.4

Other U.S. areas (3)         7.6        7.5       11.9

Foreign                      0.3        0.5        0.4

                             Thousands of employees

                           2002       2003       2004

      Total (2)          5,425.4    5,244.4    5,116.4

New England                419.2      401.4      392.5
  Connecticut              111.0      105.5      102.7
  Maine                     31.7       29.4       29.0
  Massachusetts            196.9      188.4      182.9
  New Hampshire             41.1       41.7       41.0
  Rhode Island              27.5       26.1       26.1
  Vermont                   11.1       10.3       10.8

Mideast                    996.1      988.1      965.1
  Delaware                  22.4       28.1       26.1
  District of Columbia      17.4       15.8       15.7
  Maryland                 105.4      102.9      101.1
  New Jersey               228.3      224.0      219.7
  New York                 386.8      384.2      377.0
  Pennsylvania             235.8      233.1      225.6

Great Lakes                920.3      895.5      859.6
  Illinois                 262.9      252.5      235.6
  Indiana                  133.2      134.7      132.5
  Michigan                 202.9      204.6      201.0
  Ohio                     214.2      208.0      203.6
  Wisconsin                107.1       95.6       86.9

Plains                     284.8      276.1        (M)
  Iowa                      36.6       38.7       36.2
  Kansas                    34.9       31.4       32.2
  Minnesota                 88.1       85.5       83.2
  Missouri                  91.5       87.2       84.2
  Nebraska                  18.7       19.0       20.0
  North Dakota               7.4        7.8        (I)
  South Dakota               7.6        6.5        5.5

Southeast                1,361.3    1,314.5    1,276.3
  Alabama                   75.1       72.6       70.6
  Arkansas                  35.7       32.2       32.0
  Florida                  252.1      247.8      238.4
  Georgia                  191.2      183.9      175.9
  Kentucky                  68.4       87.9       84.7
  Louisiana                 50.5       49.2       49.9

  Mississippi               25.8       21.7       25.5
  North Carolina           214.8      203.8      198.0
  South Carolina           133.0      126.8      121.7
  Tennessee                130.1      128.5      126.9
  Virginia                 141.9      138.9      133.7
  West Virginia             22.7       21.4       19.0

Southwest                  457.0      444.4      448.3
  Arizona                  575.0       58.0       62.9
  New Mexico                12.8       11.6       12.6
  Oklahoma                  33.9       34.5       31.7
  Texas                    352.8      340.3      341.2

Rocky Mountain             136.8      131.8      130.0
  Colorado                  77.7       72.3       71.4
  Idaho                     12.5       11.6       12.9
  Montana                    5.9        5.5        6.4
  Utah                      32.3       34.0       30.9
  Wyoming                    8.5        8.4        8.5

Far West                   823.1      762.7      747.9
  Alaska                    12.6       11.7       11.3
  California               612.6      558.0      547.0
  Hawaii                    36.7       35.2       31.6
  Nevada                    25.8       26.1       27.0
  Oregon                    50.9       47.9       47.6
  Washington                84.5       83.7       83.4

Puerto Rico                 16.6       16.6       16.6

Other U.S. areas (3)         9.9       12.9        (J)

Foreign                      3.0        0.4        (G)

                            Percentage of total private
                              industry employment in
                              the state or area (1)

                            1999       2000       2001

      Total (2)              4.5        4.9        4.9

New England                  5.7        6.7        7.0
  Connecticut                6.2        6.9        7.9
  Maine                      4.4        6.2        6.4
  Massachusetts              6.0        6.9        7.0
  New Hampshire              5.5        7.9        7.4
  Rhode Island               4.7        5.2        5.6
  Vermont                    3.4        3.8        4.1

Mideast                      5.0        5.6        5.6
  Delaware                   6.6        7.4        6.6
  District of Columbia       3.2        3.2        3.9
  Maryland                   4.4        5.1        5.1
  New Jersey                 6.3        6.8        6.9
  New York                   4.8        5.6        5.7
  Pennsylvania               4.6        5.0        4.7

Great Lakes                  4.6        5.0        4.9
  Illinois                   4.6        5.2        5.2
  Indiana                    5.5        5.4        5.5
  Michigan                   5.5        5.6        5.2
  Ohio                       4.6        4.6        4.5
  Wisconsin                  3.7        4.1        4.1

Plains                       3.1        3.3        3.8
  Iowa                       2.8        2.9        3.1
  Kansas                     3.0        3.3        3.2
  Minnesota                  3.3        3.8        3.7
  Missouri                   3.4        3.7        4.4
  Nebraska                   2.5        2.5        2.6
  North Dakota               1.8        1.9        3.1
  South Dakota               1.9        2.0        2.1

Southeast                    4.9        5.1        5.1
  Alabama                    4.0        4.0        4.7
  Arkansas                   3.2        3.5        3.6
  Florida                    3.4        3.8        4.0
  Georgia                    5.6        5.8        5.7
  Kentucky                   5.4        6.0        6.0
  Louisiana                  3.1        3.2        3.2

  Mississippi                2.1        2.1        2.3
  North Carolina             6.9        7.0        6.7
  South Carolina             8.2        8.2        8.4
  Tennessee                  5.6        5.7        5.7
  Virginia                   5.1        5.4        5.3
  West Virginia              4.1        4.3        4.4

Southwest                    3.7        4.1        4.1
  Arizona                    2.8        3.1        2.9
  New Mexico                 1.8        2.1        2.3
  Oklahoma                   2.8        2.8        3.3
  Texas                      4.3        4.7        4.6

Rocky Mountain               3.3        3.7        3.5
  Colorado                   3.9        4.5        4.2
  Idaho                      2.4        2.3        2.3
  Montana                    3.1        1.6        1.8
  Utah                       2.8        3.5        3.3
  Wyoming                    2.9        3.9        4.0

Far West                     4.1        4.8        4.6
  Alaska                     4.2        4.8        4.8
  California                 4.3        5.0        4.8
  Hawaii                     8.9        8.9        8.5
  Nevada                     2.9        3.3        3.0
  Oregon                     3.4        4.0        3.8
  Washington                 3.3        3.7        3.8

Puerto Rico                 n.a.       n.a.       n.a.

Other U.S. areas (3)        n.a.       n.a.       n.a.

Foreign                     n.a.       n.a.       n.a.

                            Percentage of total private
                              industry employment in
                              the state or area (1)

                            2002       2003       2004

      Total (2)              4.8        4.7        4.5

New England                  6.8        6.6        6.4
  Connecticut                7.6        7.3        7.1
  Maine                      6.2        5.7        5.6
  Massachusetts              6.7        6.5        6.3
  New Hampshire              7.5        7.7        7.4
  Rhode Island               6.5        6.1        6.1
  Vermont                    4.3        4.0        4.1

Mideast                      5.4        5.4        5.2
  Delaware                   6.1        7.7        7.0
  District of Columbia       3.8        3.4        3.4
  Maryland                   5.1        4.9        4.8
  New Jersey                 6.7        6.6        6.4
  New York                   5.4        5.4        5.3
  Pennsylvania               4.7        4.7        4.5

Great Lakes                  4.9        4.8        4.6
  Illinois                   5.1        4.9        4.6
  Indiana                    5.2        5.3        5.2
  Michigan                   5.2        5.4        5.3
  Ohio                       4.5        4.4        4.3
  Wisconsin                  4.4        4.0        3.6

Plains                       3.7        3.6        (D)
  Iowa                       3.0        3.1        2.9
  Kansas                     3.1        2.9        2.9
  Minnesota                  3.8        3.7        2.9
  Missouri                   3.9        3.8        3.6
  Nebraska                   2.4        2.5        2.6
  North Dakota               2.8        2.9        (D)
  South Dakota               2.4        2.1        1.7

Southeast                    5.1        4.9        4.7
  Alabama                    4.8        4.6        4.4
  Arkansas                   3.6        3.3        3.2
  Florida                    3.9        3.8        3.6
  Georgia                    5.7        5.6        5.2
  Kentucky                   5.9        5.8        5.6
  Louisiana                  3.2        3.1        3.1

  Mississippi                2.8        2.4        2.8
  North Carolina             6.6        6.3        6.0
  South Carolina             8.7        8.3        7.9
  Tennessee                  5.6        5.5        5.4
  Virginia                   4.9        4.8        4.5
  West Virginia              3.9        3.8        3.3

Southwest                    3.9        3.8        3.8
  Arizona                    3.0        3.0        3.1
  New Mexico                 2.2        2.0        2.1
  Oklahoma                   2.8        2.9        2.7
  Texas                      4.4        4.3        4.2

Rocky Mountain               3.6        3.5        3.4
  Colorado                   4.1        3.9        3.8
  Idaho                      2.6        2.4        2.6
  Montana                    1.8        1.7        1.9
  Utah                       3.5        3.7        3.3
  Wyoming                    4.5        4.4        4.3

Far West                     4.6        4.3        4.1
  Alaska                     5.7        5.2        4.9
  California                 4.9        4.4        4.3
  Hawaii                     8.1        7.6        6.6
  Nevada                     2.7        2.7        2.6
  Oregon                     3.8        3.6        3.5
  Washington                 3.8        3.7        3.7

Puerto Rico                 n.a.       n.a.       n.a.

Other U.S. areas (3)        n.a.       n.a.       n.a.

Foreign                     n.a.       n.a.       n.a.

n.a. Not available.

(1.) The data on employment in private industries used to calculate
the shares shown in this table are from BEA's Regional Economic
Information System. The totals are equal to employment in private
industries less employment of private households. The U.S. employment
totals used to calculate affiliate shares in this table differ from
those used for tables 1 and 5, which are from tables 6.4D of the
"National Income and Product Accounts (NIPA) Tables." They differ
from the NIPA estimates of employment because they include depository
institutions, and, by definition, they exclude U.S. residents
temporarily employed abroad by U.S. businesses. They also may differ
from the NIPA estimates because of different definitions and revision
schedules.

(2.) For consistency with the coverage of the private-industry
employment data, U.S.-affiliate employment in Puerto Rico, in
"other U.S. areas," and in "foreign" was excluded from the
U.S.-affiliate employment total when the percentage shares
on this line were computed.

(3.) Consists of the U.S. Virgin Islands, Guam, American Samoa,
and all other outlying U.S. areas.

(4.) Consists of employees of U.S. affiliates working abroad.

NOTE: The following ranges are given in employment cells that are
suppressed: A--1 to 499; F--500 to 999; G--1,000 to 2,499; H--2,500
to 4,999; I--5,000 to 9,999; J--10,000 to 24,999; K--25,000 to 49,999;
L--50,000 to 99,999; M--100,000 or more.

Table 7. Manufacturing Employment by Majority-Owned Nonbank U.S.
Affiliates by State, 1999-2004

                                  Thousands of employees

                          1999      2000      2001      2002

       Total (2)         2,036.5   2,118.8   1,934.9   1,811.9

New England                115.3     127.7     125.6     105.7
  Connecticut               28.7      32.2      35.7      29.4
  Maine                     11.0      11.4      11.4       9.6
  Massachusetts             50.0      53.3      51.2      42.5
  New Hampshire             16.4      20.8      18.2      17.6
  Rhode Island               6.3       6.1       5.2       4.1
  Vermont                    2.8       3.9       3.9       2.5

Mideast                    267.8         M     261.3     248.6
  Delaware                   7.2         I       9.4       8.1
  District of Columbia       4.0       0.4       0.4       0.7
  Maryland                  18.5      21.8      20.1      16.2
  New Jersey                65.4      64.0      64.9      67.2
  New York                  66.5      77.9      74.7      67.2
  Pennsylvania             109.9     111.7      91.9      89.3

Great Lakes                498.0     516.4     455.8     433.7
  Illinois                 101.5     109.7      97.4      88.8
  Indiana                  102.0      99.9      96.0      87.1
  Michigan                 113.9     133.9     102.2      93.6
  Ohio                     129.0     118.7     111.4     109.2
  Wisconsin                 51.6     542.0      48.7      55.0

Plains                     132.3     132.8     135.8     120.4
  Iowa                      21.9      22.4      22.1      20.2
  Kansas                    18.1      18.3      14.0      15.1
  Minnesota                 31.0      32.2      31.2      26.2
  Missouri                  45.1      46.2      51.8      42.4
  Nebraska                  10.1       8.2       8.2       7.8
  North Dakota               2.3       2.0       4.5       4.0
  South Dakota               3.7       3.5       4.0       4.7

Southeast                  593.7     596.8     543.9     533.7
  Alabama                   42.7      41.1      36.7      37.0
  Arkansas                  22.1      23.7      22.8      20.3
  Florida                   41.4      49.2      46.0      41.5
  Georgia                   76.5      79.0      70.4      68.8
  Kentucky                  57.3      60.7      55.8      53.9
  Louisiana                 22.0      22.0      19.5      16.9
  Mississippi               11.8       9.6       9.9      12.7
  North Carolina           116.4     113.6      96.6      93.4
  South Carolina            69.4      70.0      65.9      70.8
  Tennessee                 75.6      72.7      70.0      67.6
  Virginia                  46.8      42.4      38.2      37.9
  West Virginia             11.7      12.9      12.1      12.9

Southwest                  169.8     184.7     160.8     136.9
  Arizona                   15.0      16.2      15.1      13.0
  New Mexico                 2.7       3.8       2.7       1.8
  Oklahoma                  15.3      15.5      15.5      14.5
  Texas                    136.8     149.2     127.5     107.6

Rocky Mountain              33.7         K      35.9      36.7
  Colorado                  16.3      24.4      19.0      19.9
  Idaho                      4.8         H       3.8       3.7
  Montana                    2.1       0.9       2.1       2.0
  Utah                       9.4      10.1      10.0       9.7
  Wyoming                    1.1       1.1       0.9       1.4

Far West                   218.1     226.2     206.7     187.2
  Alaska                     1.3       1.5       1.7       2.1
  California               168.4     175.0     161.3     146.2
  Hawaii                     1.2       1.2       0.9       1.0
  Nevada                     4.6       4.7       4.8       4.7
  Oregon                    18.0      19.3      15.6      12.7
  Washington                24.5      24.5      22.3      20.5

Puerto Rico                  7.5       8.4       8.1       8.5

Other U.S. areas (3)         0.3       0.3       1.0       0.5

Foreign (4)                  0.0       0.0       0.0       (*)

                                             Percentage of total
                            Thousands of     manufacturing employment
                             employees       in the state or area (1)

                          2003      2004     1999   2000

       Total (2)         1,667.4   1,574.2   11.7   12.2

New England                 99.8      91.7   12.2   13.6
  Connecticut               28.8      26.3   11.9   13.7
  Maine                      7.3       7.9   13.6   14.3
  Massachusetts             40.2      35.4   12.4   13.1
  New Hampshire             18.2      17.1   16.0   20.4
  Rhode Island               3.4       3.2    8.6    8.6
  Vermont                    1.9       1.9    6.2    8.4

Mideast                    229.8     209.6   11.9    (D)
  Delaware                   9.9       8.8   16.9    (D)
  District of Columbia       0.4       0.5   10.5   11.5
  Maryland                  15.5      13.9   10.9   12.6
  New Jersey                56.5      51.6   15.8   15.2
  New York                  59.9      53.6    8.8   10.5
  Pennsylvania              87.5      81.3   12.6   13.0

Great Lakes                396.7     370.7   12.3   12.8
  Illinois                  79.8      71.0   11.6   12.7
  Indiana                   82.2      80.8   15.3   15.1
  Michigan                  89.3      84.3   12.8   15.0
  Ohio                      99.0      95.0   12.6   11.7
  Wisconsin                 46.4      39.6    8.7    9.1

Plains                     112.9     106.6    9.4    9.5
  Iowa                      21.1      19.6    8.7    8.9
  Kansas                    13.7      13.5    8.9    9.2
  Minnesota                 22.4      21.5    7.9    8.2
  Missouri                  39.8      38.6   12.1   12.7
  Nebraska                   8.9       7.3    9.0    7.2
  North Dakota               3.7       2.8   10.0    8.2
  South Dakota               3.2       3.3    8.4    8.0

Southeast                  490.6     473.1   13.6   13.9
  Alabama                   34.4      31.7   12.0   11.8
  Arkansas                  19.1      18.3    9.2    9.9
  Florida                   35.2      34.7    9.1   10.9
  Georgia                   65.3      59.3   14.0   14.6
  Kentucky                  51.1      47.4   18.5   19.6
  Louisiana                 15.8      15.4   12.2   12.4
  Mississippi                9.4      13.2    5.1    4.3
  North Carolina            82.2      78.4   15.0   15.0
  South Carolina            63.9      60.7   20.8   21.0
  Tennessee                 67.6      67.0   15.3   14.9
  Virginia                  35.8      37.8   12.8   11.8
  West Virginia             10.7       9.3   15.3   17.1

Southwest                  125.0     118.1   11.4   12.4
  Arizona                   13.7      12.7    7.3    7.8
  New Mexico                 1.3       1.7    6.7    9.2
  Oklahoma                  12.2      11.2    8.6    8.8
  Texas                     97.7      92.6   12.9   14.0

Rocky Mountain              29.8      29.0    8.1    (D)
  Colorado                  15.5      14.4    8.7   12.9
  Idaho                      3.2       4.5    6.9    (D)
  Montana                    0.6       0.6    9.4    4.1
  Utah                       9.4       8.0    7.4    8.0
  Wyoming                    1.1       1.5   10.6    9.8

Far West                   171.4     163.6    8.8    9.1
  Alaska                     1.9       2.0   10.7   11.6
  California               133.5     126.1    9.2    9.4
  Hawaii                     0.6       0.7    7.8    7.7
  Nevada                     4.0       4.2   11.4   11.2
  Oregon                    11.1      10.7    8.1    8.6
  Washington                20.3      19.8    7.2    7.4

Puerto Rico                  8.5       7.9    n.a.   n.a.

Other U.S. areas (3)         2.8         H    n.a.   n.a.

Foreign (4)                  0.3         F    n.a.   n.a.

                            Percentage of total
                          manufacturing employment
                          in the state or area (1)

                         2001   2002   2003   2004

       Total (2)         11.6   11.8   11.4   10.9

New England              13.8   12.8   12.9   12.2
  Connecticut            15.7   13.8   14.3   13.3
  Maine                  15.1   13.9   11.3   12.4
  Massachusetts          13.1   12.1   12.3   11.2
  New Hampshire          18.6   20.6   22.5   21.2
  Rhode Island            7.6    6.5    5.8    5.5
  Vermont                 8.5    6.2    5.0    5.0

Mideast                  12.1    (D)   12.3   11.5
  Delaware               23.7   21.9   27.8   25.2
  District of Columbia   11.0    (D)   13.8   20.6
  Maryland               11.8   10.2   10.5    9.6
  New Jersey             16.1   18.2   16.1   15.1
  New York               10.5   10.2    9.7    8.9
  Pennsylvania           11.1   11.7   12.2   11.7

Great Lakes              12.0   12.3   11.8   11.2
  Illinois               11.9   11.7   11.1   10.1
  Indiana                15.5   14.7   14.3   14.1
  Michigan               12.3   12.3   12.3   12.0
  Ohio                   11.6   12.3   11.7   11.5
  Wisconsin               8.7   10.4    9.1    7.8

Plains                   10.1    9.5    9.2    8.7
  Iowa                    9.1    8.8    9.5    8.7
  Kansas                  7.1    8.3    7.8    7.6
  Minnesota               8.2    7.3    6.4    6.2
  Missouri               15.1   13.0   12.7   12.3
  Nebraska                7.4    7.3    8.7    7.2
  North Dakota           18.4   16.5   15.7   11.5
  South Dakota            9.6   12.1    8.5    8.5

Southeast                13.3   14.0   13.5   13.2
  Alabama                11.1   11.9   11.6   10.8
  Arkansas               10.0    9.4    9.2    8.9
  Florida                10.5   10.1    9.0    8.8
  Georgia                13.8   14.4   14.4   13.1
  Kentucky               18.9   19.4   19.0   17.8
  Louisiana              11.2   10.4   10.1   10.1
  Mississippi             4.9    6.7    5.2    7.3
  North Carolina         13.6   14.4   13.5   13.4
  South Carolina         20.8   24.2   22.8   22.5
  Tennessee              15.3   15.7   16.3   16.2
  Virginia               11.0   11.7   11.6   12.5
  West Virginia          16.6   18.6   16.4   14.6

Southwest                11.1   10.3    9.9    9.4
  Arizona                 7.5    7.0    7.7    7.1
  New Mexico              6.6    4.7    3.6    4.7
  Oklahoma                9.1   95.0    8.5    7.8
  Texas                  12.3   11.3   10.8   10.3

Rocky Mountain            8.8    (D)    8.4    8.0
  Colorado               10.4   11.9    9.8    9.3
  Idaho                   5.5   57.0    5.1    7.2
  Montana                 9.9    9.7    3.1    2.9
  Utah                    8.2    8.5    8.4    7.0
  Wyoming                 9.2    (D)   11.9   16.2

Far West                  8.6    8.5    8.2    7.9
  Alaska                 13.6   18.6   15.9   16.1
  California              9.0    8.9    8.6    8.2
  Hawaii                  5.5    6.4    4.3    4.8
  Nevada                 10.9   10.9    8.9    9.0
  Oregon                  7.2    6.2    5.6    5.3
  Washington              7.0    7.1    7.6    7.5

Puerto Rico               n.a.   n.a.   n.a.   n.a.

Other U.S. areas (3)      n a.   n.a.   n.a.   n.a.

Foreign (4)               n.a.   n.a.   n.a.   n.a.

(D) Suppressed to avoid disclosure of data of individual companies.

More than zero and fewer than 50 employees.

n.a. Not available.

(1.) The data on employment in manufacturing used to calculate the
shares shown in this table are from BEA's Regional Economic
Information System. The U.S. manufacturing employment totals used to
calculate shares in this table differ from the NIPA data for
manufacturing used for table 5 (see footnote 1 to table 5).

(2.) Total affiliate manufacturing employment and the shares of
all-U.S.-business manufacturing employment accounted for by affiliates
in this table differ from those shown in table 5 (see footnote 3 to
table 5). For consistency with the coverage of the employment data for
all U.S. manufacturing plants, U S. affiliate employment in Puerto
Rico, in "other U.S. areas," and in "foreign" was excluded from the
U.S. affiliate total when the percentage shares on this line were
computed.

(3.) Consists of the U.S. Virgin Islands, Guam, American Samoa, and
all other outlying U.S. areas.

(4.) Consists of employees of U.S. affiliates working abroad.

NOTE. The following ranges are given in employment cells that are
suppressed: A--1 to 499; F--500 to 999; G--1,000 to 2,499; H--2,500
to 4,999; I--5,000 to 9,999; J--10,000 to 24,999; K--25,000 to 49,999;
L--50,000 to 99,999; M--100,000 or more.

Table 8. U.S. Trade in Goods by Majority-Owned Nonbank U.S.
Affiliates, 1987-2004

                         Millions of dollars

               U.S. exports of       U.S. imports of
               goods shipped by      goods shipped to
                  affiliates            affiliates

                      Of which:             Of which:
                       To the               From the
             Total     foreign     Total     foreign
                       parent                parent
                        group                 group

1987         39,497      18,677   133,620     102,167
1988         57,209      26,001   144,896     112,012
1989         72,413      33,778   158,792     122,899
1990         79,368      37,177   170,677     131,665
1991         85,254      41,373   169,362     128,143
1992         91,686      47,567   172,260     132,217
1993         94,329      46,241   186,369     144,698
1994        107,057      49,864   214,485     166,085
1995        121,277      55,842   232,250     182,148
1996        125,897      59.544   248,562     187,889
1997        128,394      61,288   249,310     193,969
1998        136,949      56,115   277,909     199,524
1999        140,808      58,385   312,895     225,132
2000        150,911      64,785   354,613     267,187
2001        145,525      64,442   333,855     260,633
2002        140,510      64,572   335,021     267,291
2003 (r)    147,643      71.188   356,756     290,492
2004 (p)    153,902      73,941   378,111     307,111

              U.S. exports of    U.S. imports of
              goods shipped by   goods shipped to
              affiliates as a    affiliates as a
                percentage of     percentage of
            total U.S. exports  total U.S. imports
                  of goods           of goods

                    Of which:           Of which:
                     To the             From the
            Total    foreign    Total    foreign
                     parent              parent
                      group               group

1987         15.5         7.3    32.9        25.1
1988         17.7         8.1    32.9        25.4
1989         19.9         9.3    33.6        26.0
1990         20.2         9.4    34.5        26.6
1991         20.2         9.8    34.7        26.2
1992         20.5        10.6    32.3        24.8
1993         20.3         9.9    32.1        24.9
1994         20.9         9.7    32.3        25.0
1995         20.7         9.5    31.2        25.0
1996         20.1         9.5    31.3        23.6
1997         18.6         8.9    28.6        22.3
1998         20.1         8.2    30.5        21.9
1999         20.2         8.4    30.5        22.0
2000         19.3         8.3    29.1        21.9
2001         20.0         8.8    29.3        22.8
2002         20.3         9.3    28.8        23.0
2003 (r)     20.4         9.8    28.4        23.1
2004 (p)     18.8         9.0    25.7        20.9

(p) Preliminary

(r) Revised

NOTE. The data on U.S. exports and imports of goods used to compute the
affiliate shares in this table are from the U.S. Census Bureau.

Table 9. U.S. Trade in Goods by Majority-Owned Nonbank U.S. Affiliates
by Selected Country of Ultimate Beneficial Owner, 1999-2004

                                    Millions of dollars

                           1999      2000      2001      2002

   U.S. exports shipped
     by affiliates:
     All countries        140,808   150,911   145,525   140,510

Canada                      7,331     9,058     8,191     6,401
France                        (D)    10,474     9.817    10,043
Germany                    30,655    31,430    29,298    30,351
Netherlands                 4,914       (D)       (D)     5,022
Switzerland                 5,475     5,931     5,947     5,998
United Kingdom             15,251    16,262    15,586    14,241
Japan                      38,134    40,667    40,766    38,531
Korea, Republic of            (D)       (D)       (D)     4,368
Other                      21,981    25,013    25,111    25,556

   U.S. imports shipped
     by affiliates:
     All countries        312,895   354,613   333,855   335,021

Canada                     16,169    20,995    19,070    18,634
France                     15,912       (D)       (D)    14,608
Germany                    53,306   578,041    56,477    57,386
Netherlands                15,903       (D)    16,227    14,817
Switzerland                 7,126     8,416     8,010     8,438
United Kingdom             19,091    23,691    22,675    21,344
Japan                     134,514   147,156   133,612   127,923
Korea, Republic of            (D)       (D)       (D)    19,966
Other                         (D)    45,673    47,507    51,905

                              Millions of           Percentage of
                                dollars          all-countries total

                           2003      2004     1999    2000    2001

   U.S. exports shipped
     by affiliates:
     All countries        147,643   153,902   100.0   100.0   100.0

Canada                      6,405     6,551     5.2     6.0     5.6
France                      9,744     9,365     (D)     6.9     6.7
Germany                    32,326    32,343    21.8    20.8    20.1
Netherlands                 5,068     5,406     3.5     (D)     (D)
Switzerland                 4,941     5,052     3.9     3.9     4.1
United Kingdom             13,608    14,752   108.0    10.8    10.7
Japan                      41,010    44,260   271.0   269.0    28.0
Korea, Republic of          5,205     7,295     (D)     (D)     (D)
Other                      29,336    28,878    15.6    16.6    17.3

   U.S. imports shipped
     by affiliates:
     All countries        356,756   378,111   100.0   100.0   100.0

Canada                     23,012    23,919    52.0     5.9     5.7
France                     14,489    15,393     5.1     (D)     (D)
Germany                    62,062    61,744    17.0    16.3   169.0
Netherlands                14,893    15,266     5.1     (D)    49.0
Switzerland                 9,173     9,735     2.3     2.4     2.4
United Kingdom             25,568    26,339     6.1     6.7     6.8
Japan                     133,170   136,924    43.0    41.5    40.0
Korea, Republic of         22,081    28.632     (D)     (D)     (D)
Other                      52,307    60,161     (D)    12.9    14.2

                               Percentage of      Addendum:
                           all-countries total    Percent
                                                  change in
                          2002    2003    2004    affiliate
                                                  exports or
                                                   imports,
                                                  2003-2004

   U.S. exports shipped
     by affiliates:
     All countries        100.0   100.0   100.0          4.2

Canada                      4.6     4.3     4.3          2.3
France                      7.1     6.6     6.1         -3.9
Germany                    21.6    21.9    21.0          0.1
Netherlands                 3.6     3.4     3.5          6.7
Switzerland                 4.3     3.3     3.3          2.3
United Kingdom             10.1     9.2     9.6          8.4
Japan                      27.4    27.8    28.8          7.9
Korea, Republic of          3.1     3.5     4.7         40.1
Other                      18.2    19.9    18.8         -1.6

   U.S. imports shipped
     by affiliates:
     All countries        100.0   100.0   100.0          6.0

Canada                      5.6     6.5     6.3          3.9
France                      4.4     4.1     4.1          6.2
Germany                    17.1    17.4    16.3         -0.5
Netherlands                 4.4     4.2     4.0          2.5
Switzerland                 2.5     2.6     2.6          6.1
United Kingdom              6.4     7.2     7.0          3.0
Japan                      38.2    37.3    36.2          2.8
Korea, Republic of          6.0     6.2     7.6         29.7
Other                      15.5    14.7    15.9         15.0

(D) Suppressed to avoid disclosure of data of individual companies.

NOTE. Affiliates of the eight countries listed in this table accounted
for the largest shares of affiliate trade in each of the years
1999-2004.

Table 10.1. Selected Data of Majority-Owned Nonbank U.S. Affiliates by
Industry of Affiliate, 2003

                                        Millions of dollars

                                              Gross      Expenditures
                                 Total      property,    for property,
                                 assets     plant, and     plant, an
                                            equipment      equipment

                                   (1)         (2)            (3)

        All industries          5,100,796    1,047,010         109,126

Manufacturing                   1,031,801      487,037          41,761
  Food                             47,375       18,977           1,308
  Beverages and tobacco
    products                       29,309        8,264             759
  Textiles, apparel, and
    leather products                 (D)         2,861             154
  Paper                            20,198       17,255             958
  Printing and related
    support activities             10,675        6,098             334
  Petroleum and coal products        (D)          (D)              (D)
  Chemicals                       241,727      107,208             (D)
    Basic chemicals                27,594       31,201           1,504
    Resins and synthetic
      rubber, fibers, and
      filaments                    31,221       25,507             (D)
    Pharmaceuticals and
      medicines                   118,526       33,960           3,073
    Soap, cleaning compounds,
      and toilet preparations      44,891        6,354             447
    Other                          19,496       10,185             574

  Plastics and rubber products     28,620       19,041           1,256
  Nonmetallic mineral products     61,117       46,730           2,729
  Primary and fabricated
    metals                         42,573       28,144           1,612
    Primary metals                 21,544       16,311             954
    Fabricated metal products      21,029       11,833             658

  Machinery                        91,576       22,526           2,772
    Agriculture,
      construction,
      and mining machinery         40,863        4,579             464
    Industrial machinery            6,140        2,284             171
    Other                          44,573       15,663           2,137

  Computers and electronic
    products                       81,402       29,121           2,478
    Computers and peripheral
      equipment                       (D)        1,883             (D)
    Communications equipment       26,963        7,384             473
    Semiconductors and other
      electronic components        16,465        9,687             522
    Navigational, measuring,
      and other instruments        16,912        4,314             (D)
    Other                             (D)        5,852             473

  Electrical equipment,
    appliances, and
    components                     25,868        8,761           1,354
  Transportation equipment        228,866      110,015          14,736
    Motor vehicles, bodies
      and trailers, and parts     212,405      105,078          14,486
    Other                          16,461        4,938             250
  Other                            61,095         (D)            1,281

Wholesale trade                   450,203      192,876          24,627
  Motor vehicles and motor
    vehicle parts and
    supplies                      100,357       51,989          12,571
  Electrical goods                 38,383       10,918             888
  Petroleum and petroleum
    products                      145,710          (D)             (D)
  Other                           165,752          (D)             (D)

Retail trade                       60,081       41,702           5,022
  Food and beverage stores         38,047       31,321           3,417
  Other                            22,034       10,381           1,605

Information                       267,248       41,766           6,694
  Publishing industries            74,766        5,836             618
  Motion picture and sound
    recording industries           46,882        3,457             379
  Telecommunicatons                57,938       23,660           4,643
  Other                            87,662        8,814           1,054

Finance (except depository
  institutions) and insurance   2,716,162       32,283           6,497
  Finance, except depository
    institutions                1,676,761       17,941           5,328
  Insurance carriers and
    related activities          1,039,401       14,342           1,169

Real estate and rental and
  leasing                          88,568       73,985           6,876
  Real estate                      74,784       65,595           5,396
  Rental and leasing (except
    real estate)                   13,783        8,390           1,480

Professional, scientific, and
  technical services               67,164        9,997             967
  Architectural, engineering,
    and related services            9,528        2,059             167
  Computer systems design and
    related services               10,714        3,050             384
  Management, scientific, and
    technical consulting           10,440          477              38
  Other                            36,482        4,411             378

Other industries                  419,569      167,364          16,682
  Agriculture, forestry,
    fishing, and hunting            4,015        2,689             242
  Mining                           56,701       34,235           3,045
  Utilities                        90,639       62,154           6,044
  Construction                     17,918        8,024           2,833
  Transportation and
    warehousing                    42,917       27,540           2,005
  Management of nonbank
    companies and enterprises     122,174          558              56
  Administration, support, and
    waste management               26,954        3,455             414
  Health care and social
    assistance                      9,331        3,210             328
  Accommodation and food
    services                       41,006       19,862           1,327
  Miscellaneous services            7,714        5,638             388

                                         Millions of dollars

                                  Sales     Net income   Value
                                                          added

                                   (4)         (5)         (6)

        All industries          2,122,683       30,416   475,062

Manufacturing                     848,174        5,633   220,637
  Food                             47,790           64     9,268
  Beverages and tobacco
    products                       23,025       -1,201     7,142
  Textiles, apparel, and
    leather products                3,654          -36     1,239
  Paper                            16,002         -392     4,438
  Printing and related
    support activities             11,449          191     4,877
  Petroleum and coal products      63,914        2,569    18,373
  Chemicals                       162,526        6,206    47,307
    Basic chemicals                23,153         -648     6,117
    Resins and synthetic
      rubber, fibers, and
      filaments                    29,917         -115     5,370
    Pharmaceuticals and
      medicines                    77,202        2,245    25,340
    Soap, cleaning compounds,
      and toilet preparations      18,132        4,537     6,610
    Other                          14,121          186     3,869

  Plastics and rubber products     32,170         -246     9,553
  Nonmetallic mineral products     41,482          911    14,913
  Primary and fabricated
    metals                         45,154         -579    11,796
    Primary metals                 22,815         -753     4,029
    Fabricated metal products      22,340          174     7,767

  Machinery                        63,358       -2,850    19,712
    Agriculture,
      construction,
      and mining machinery         15,309         -499     3,272
    Industrial machinery            7,047         -464     1,833
    Other                          41,002       -1,887    14,607

  Computers and electronic
    products                       74,830         -305    18,782
    Computers and peripheral
      equipment                     8,840         -268     1,929
    Communications equipment       13,081          142     3,919
    Semiconductors and other
      electronic components        16,796         -174     3,458
    Navigational, measuring,
      and other instruments        12,585         -291     5,327
    Other                          23,527          286     4,149

  Electrical equipment,
    appliances, and
    components                     19,611         -129     5,235
  Transportation equipment        208,911        1,573    34,800
    Motor vehicles, bodies
      and trailers, and parts     194,236        3,036    32,336
    Other                          14,675       -1,463     2,464
  Other                            34,298         -142    13,200

Wholesale trade                   652,888       17,184    86,568
  Motor vehicles and motor
    vehicle parts and
    supplies                      136,466        3,178    11,138
  Electrical goods                 65,490          139     8,970
  Petroleum and petroleum
    products                      214,506        8,167    30,290
  Other                           236,427        5,700    36,169

Retail trade                      121,517          909    27,843
  Food and beverage stores         89,421          866    20,282
  Other                            32,096           42     7,561

Information                        81,731       -4,584    26,049
  Publishing industries            26,044         -221    10,138
  Motion picture and sound
    recording industries           12,158          152     2,862
  Telecommunicatons                18,372       -4,662     3,149
  Other                            25,158          147     9,899

Finance (except depository
  institutions) and insurance     174,072        7,649    22,961
  Finance, except depository
    institutions                   60,158        3,495    10,621
  Insurance carriers and
    related activities            113,914        4,155    12,341

Real estate and rental and
  leasing                          19,729          767     9,928
  Real estate                      14,542          867     7,715
  Rental and leasing (except
    real estate)                    5,188         -100     2,213

Professional, scientific, and
  technical services               49,293           31    16,694
  Architectural, engineering,
    and related services            7,414         -475     2,691
  Computer systems design and
    related services               12,329         -620     6,920
  Management, scientific, and
    technical consulting            1,684          849       819
  Other                            27,865          278     6,264

Other industries                  175,280        2,827    64,383
  Agriculture, forestry,
    fishing, and hunting            2,158           39       596
  Mining                           17,548          351     8,498
  Utilities                        36,422          577     9,411
  Construction                     27,973          407     5,567
  Transportation and
    warehousing                    35,245            7    10,582
  Management of nonbank
    companies and enterprises       1,467        1,312      -544
  Administration, support, and
    waste management               19,580          307    13,304
  Health care and social
    assistance                      7,998          232     4,213
  Accommodation and food
    services                       22,207         -145    10,775
  Miscellaneous services            4,682         -258     1,981

                                Millions of
                                  dollars
                                               Thousands
                                Compensation      of
                                of employees   employees

                                    (7)           (8)

        All industries               316,369     5,244.4

Manufacturing                        146,636     2,117.4
  Food                                 6,647       115.3
  Beverages and tobacco
    products                           3,347        57.3
  Textiles, apparel, and
    leather products                     980        20.1
  Paper                                3,145        47.9
  Printing and related
    support activities                 3,583        61.6
  Petroleum and coal products          4,725        33.0
  Chemicals                           28,900       308.7
    Basic chemicals                    3,990        43.5
    Resins and synthetic
      rubber, fibers, and
      filaments                        2,995        37.0
    Pharmaceuticals and
      medicines                       16,119       151.3
    Soap, cleaning compounds,
      and toilet preparations          2,884        37.6
    Other                              2,911        39.3

  Plastics and rubber products         7,327       126.6
  Nonmetallic mineral products         9,076       154.3
  Primary and fabricated
    metals                             9,069       140.0
    Primary metals                     3,150        47.3
    Fabricated metal products          5,920        92.8

  Machinery                           17,292       246.2
    Agriculture,
      construction,
      and mining machinery             3,415        50.4
    Industrial machinery               1,900        25.0
    Other                             11,977       170.8

  Computers and electronic
    products                          14,660       180.9
    Computers and peripheral
      equipment                        1,617        19.0
    Communications equipment           3,531        35.4
    Semiconductors and other
      electronic components            2,027        33.9
    Navigational, measuring,
      and other instruments            4,228        60.0
    Other                              3,256        32.7

  Electrical equipment,
    appliances, and
    components                         4,225        80.1
  Transportation equipment            24,661       382.9
    Motor vehicles, bodies
      and trailers, and parts         21,497       336.3
    Other                              3,164        46.6
  Other                                8,999       162.4

Wholesale trade                       40,123       529.1
  Motor vehicles and motor
    vehicle parts and
    supplies                           5,511        64.6
  Electrical goods                     6,368        73.6
  Petroleum and petroleum
    products                           5,223        51.4
  Other                               23,023       339.5

Retail trade                          17,064       582.2
  Food and beverage stores            12,308       432.3
  Other                                4,757       149.9

Information                           17,689       239.9
  Publishing industries                7,220        93.9
  Motion picture and sound
    recording industries               1,665        30.0
  Telecommunicatons                    2,561        38.6
  Other                                6,243        77.3

Finance (except depository
  institutions) and insurance         32,539       240.7
  Finance, except depository
    institutions                      19,029       107.4
  Insurance carriers and
    related activities                13,510       133.3

Real estate and rental and
  leasing                              2,071        35.6
  Real estate                          1,103        19.2
  Rental and leasing (except
    real estate)                         968        16.4

Professional, scientific, and
  technical services                  14,453       175.2
  Architectural, engineering,
    and related services               2,719        41.5
  Computer systems design and
    related services                   6,172        61.5
  Management, scientific, and
    technical consulting                 627         7.7
  Other                                4,935        64.6

Other industries                      45,794     1,324.2
  Agriculture, forestry,
    fishing, and hunting                 385         8.1
  Mining                               4,364        61.0
  Utilities                            2,684        34.8
  Construction                         4,383        63.0
  Transportation and
    warehousing                        8,439       199.8
  Management of nonbank
    companies and enterprises            365         3.8
  Administration, support, and
    waste management                  12,272       491.1
  Health care and social
    assistance                         3,179        80.9
  Accommodation and food
    services                           8,413       338.7
  Miscellaneous services               1,309        43.2

                                     Millions of dollars

                                U.S. exports   U.S.imports
                                  of goods      of goods
                                 shipped by    shipped to
                                 affiliates    affiliates

                                    (9)           (10)

        All industries               147,643       356,756

Manufacturing                         87,841       138,802
  Food                                 7,591         2,080
  Beverages and tobacco
    products                             915         1,857
  Textiles, apparel, and
    leather products                     419           324
  Paper                                1,151         2,953
  Printing and related
    support activities                   252           208
  Petroleum and coal products           (D)          5,761
  Chemicals                           15,718        21,524
    Basic chemicals                    3,880         2,027
    Resins and synthetic
      rubber, fibers, and
      filaments                        3.215         3,769
    Pharmaceuticals and
      medicines                        6,234        13,606
    Soap, cleaning compounds,
      and toilet preparations            588           464
    Other                              1,801         1,659

  Plastics and rubber products         2,577         4,903
  Nonmetallic mineral products         1,375         1,473
  Primary and fabricated
    metals                             3,480         6,929
    Primary metals                     2,089         4,611
    Fabricated metal products          1,392         2,318

  Machinery                            8,367         9,010
    Agriculture,
      construction,
      and mining machinery             3,032         1,536
    Industrial machinery               1,072         1,021
    Other                              4,263         6,453

  Computers and electronic
    products                             (D)        19,835
    Computers and peripheral
      equipment                          941         3,893
    Communications equipment           1,538           (D)
    Semiconductors and other
      electronic components            4,838         4,762
    Navigational, measuring,
      and other instruments            1,865           785
    Other                                (D)           (D)

  Electrical equipment,
    appliances, and
    components                         2,697         1,818
  Transportation equipment            28,031        56,111
    Motor vehicles, bodies
      and trailers, and parts         26,171        54,108
    Other                              1,860         2,003
  Other                                3,840         4,015

Wholesale trade                       54,738       206,519
  Motor vehicles and motor
    vehicle parts and
    supplies                           7,454        71,541
  Electrical goods                     7,595        34,275
  Petroleum and petroleum
    products                          10,817        29,130
  Other                               28,872        71,573

Retail trade                             591         3,771
  Food and beverage stores               (*)           (D)
  Other                                  591           (D)

Information                              998         1,084
  Publishing industries                  559           139
  Motion picture and sound
    recording industries                 (D)           (D)
  Telecommunicatons                        1           (D)
  Other                                  (D)           (D)

Finance (except depository
  institutions) and insurance              0             0
  Finance, except depository
    institutions                           0             0
  Insurance carriers and
    related activities                     0             0

Real estate and rental and
  leasing                                (D)           390
  Real estate                              5             1
  Rental and leasing (except
    real estate)                         (D)           389

Professional, scientific, and
  technical services                     (D)           282
  Architectural, engineering,
    and related services                 225            87
  Computer systems design and
    related services                      11           (D)
  Management, scientific, and
    technical consulting                   0             0
  Other                                  (D)           (D)

Other industries                       2,908         5,907
  Agriculture, forestry,
    fishing, and hunting                 305            84
  Mining                               2,323           175
  Utilities                              (D)         5,403
  Construction                           121            37
  Transportation and
    warehousing                          (D)           (D)
  Management of nonbank
    companies and enterprises              0             6
  Administration, support, and
    waste management                     (*)             0
  Health care and social
    assistance                           (D)           (D)
  Accommodation and food
    services                             (*)             2
  Miscellaneous services                  27            39

                                Millions of
                                  dollars

                                Research and
                                development
                                performed by
                                 affiliates

                                    (11)

        All industries                29,803

Manufacturing                         20,988
  Food                                   166
  Beverages and tobacco
    products                             (D)
  Textiles, apparel, and
    leather products                      30
  Paper                                   67
  Printing and related
    support activities                    50
  Petroleum and coal products            (D)
  Chemicals                            9,957
    Basic chemicals                      589
    Resins and synthetic
      rubber, fibers, and
      filaments                          311
    Pharmaceuticals and
      medicines                        8,505
    Soap, cleaning compounds,
      and toilet preparations            304
    Other                                248

  Plastics and rubber products           423
  Nonmetallic mineral products           198
  Primary and fabricated
    metals                               194
    Primary metals                        28
    Fabricated metal products            165

  Machinery                            1,572
    Agriculture,
      construction,
      and mining machinery               361
    Industrial machinery                 223
    Other                                988

  Computers and electronic
    products                           3,340
    Computers and peripheral
      equipment                          145
    Communications equipment           1,403
    Semiconductors and other
      electronic components              444
    Navigational, measuring,
      and other instruments            1,278
    Other                                 70

  Electrical equipment,
    appliances, and
    components                           336
  Transportation equipment             3,669
    Motor vehicles, bodies
      and trailers, and parts          3,386
    Other                                283
  Other                                  661

Wholesale trade                        6,030
  Motor vehicles and motor
    vehicle parts and
    supplies                             466
  Electrical goods                     1,554
  Petroleum and petroleum
    products                             (D)
  Other                                  (D)

Retail trade                             (D)
  Food and beverage stores               (*)
  Other                                  (D)

Information                              852
  Publishing industries                  632
  Motion picture and sound
    recording industries                   1
  Telecommunicatons                        9
  Other                                  210

Finance (except depository
  institutions) and insurance             13
  Finance, except depository
    institutions                          12
  Insurance carriers and
    related activities                     1

Real estate and rental and
  leasing                                  9
  Real estate                            (*)
  Rental and leasing (except
    real estate)                           8

Professional, scientific, and
  technical services                   1,379
  Architectural, engineering,
    and related services                  75
  Computer systems design and
    related services                     278
  Management, scientific, and
    technical consulting                   3
  Other                                1,023

Other industries                         (D)
  Agriculture, forestry,
    fishing, and hunting                  82
  Mining                                 333
  Utilities                                5
  Construction                             7
  Transportation and
    warehousing                            0
  Management of nonbank
    companies and enterprises            (*)
  Administration, support, and
    waste management                       4
  Health care and social
    assistance                           (D)
  Accommodation and food
    services                               0
  Miscellaneous services                 (*)

* Less than $500,000.

(D) Suppressed to avoid disclosure of data of individual companies.

NOTE. Estimates for 2003 are revised.

Table 10.2. Selected Data of Majority-Owned Nonbank U.S. Affiliates
by Industry of Affiliate, 2004

                                          Millions of dollars

                                                         Gross
                                       Total assets    Property,
                                                       plant, and
                                                       equipment

                                           (1)            (2)

      All industries                      5,539,810      1,060,181

Manufacturing                             1,075,992        484,306
  Food                                       46,641         19,764
  Beverages and tobacco products             35,329          8,665
  Textiles, apparel, and leather
    products                                    (D)          2,864
  Paper                                      21,173         17,690
  Printing and related support
    activities                                7,039          4,160
  Petroleum and coal products                   (D)            (D)
  Chemicals                                 259,269        103,371
    Basic chemicals                          26,051         29,372
    Resins and synthetic rubber,
      fibers, and filaments                  29,069         24,086
    Pharmaceuticals and medicines           125,646         32,256
    Soap, cleaning compounds,
      and toilet preparations                51,684          7,176
    Other                                    26,820         10,482
  Plastics and rubber products               30,480         20,956
  Nonmetallic mineral products               63,121         48,306
  Primary and fabricated metals              47,341         29,855
    Primary metals                           30,295         19,881
    Fabricated metal products                17,046          9,974
  Machinery                                  98,190         23,518
    Agriculture, construction,
      and mining machinery                   41,955          4,511
    Industrial machinery                      8,388          2,653
    Other                                    47,847         16,353
  Computers and electronic products          80,269         27,762
    Computers and peripheral
      equipment                               3,574          1,814
    Communications equipment                 26,444          5,981
    Semiconductors and other
      electronic components                  15,626          9,304
    Navigational, measuring, and
      other instruments                      15,683          3,951
    Other                                    18,941          6,711
  Electrical equipment, appliances,
    and components                           22,839          8,323
  Transportation equipment                  240,107        109,684
    Motor vehicles, bodies and
      trailers, and parts                   220,537        104,708
    Other                                    19,570          4,976
  Other                                      63,550            (D)

Wholesale trade                             469,393        197,837
  Motor vehicles and motor vehicle
    parts and supplies                      115,403         58,643
  Electrical goods                           36,096         10,166
  Petroleum and petroleum products          140,640            (D)
  Other                                     177,254            (D)

Retail trade                                 61,116         41,960
  Food and beverage stores                   37,908         31,403
  Other                                      23,206         10,557

Information                                 266,387         40,971
  Publishing industries                      77,519          6,034
  Motion picture and sound
    recording industries                     46,286          2,550
  Telecommunications                         62,945         23,504
  Other                                      79,638          8,883

Finance (except depository
    institutions) and insurance           3,046,258         28,070
  Finance, except depository
    institutions                          1,918,293         16,190
  Insurance carriers and related
    activities                            1,127,965         11,880

Real estate and rental and leasing           91,511         75,167
  Real estate                                75,670         66,516
  Rental and leasing (except real
    estate)                                  15,841          8,651

Professional, scientific, and
    technical services                       70,403         10,240
  Architectural, engineering,
    and related services                      9,461          2,064
  Computer systems design and
    related services                         10,489          3,141
  Management, scientific, and
    technical consulting                     11,540            318
  Other                                      38,914          4,718

Other industries                            458,749        181,630
  Agriculture, forestry, fishing,
    and hunting                               4,039          2,784
  Mining                                     67,909         43,389
  Utilities                                  94,359         67,269
  Construction                               21,646          9,252
  Transportation and warehousing             48,306         26,466
  Management of nonbank companies
    and enterprises                         130,798            574
  Administration, support, and
    waste management                         32,804          3,708
  Health care and social assistance           9,620          3,373
  Accommodation and food services            41,186         19,146
  Miscellaneous services                      7,879          5,668

                                           Millions of dollars

                                          Expenditures
                                          for proper,       Sales
                                           plant, an
                                           equipment

                                           (3)            (4)

      All industries                        108,149      2,303,543

Manufacturing                                40,082        927,115
  Food                                        1,593         50,718
  Beverages and tobacco products                871         24,767
  Textiles, apparel, and leather
    products                                    173          4,055
  Paper                                       1,035         17,288
  Printing and related support
    activities                                  160          7,224
  Petroleum and coal products                 2,675            (D)
  Chemicals                                   6,365        179,413
    Basic chemicals                           1,239         24,593
    Resins and synthetic rubber,
      fibers, and filaments                   1,209         33,178
    Pharmaceuticals and medicines             2,736         83,486
    Soap, cleaning compounds,
      and toilet preparations                   527         21,257
    Other                                       654         16,900
  Plastics and rubber products                1,451         36,257
  Nonmetallic mineral products                2,787         47,052
  Primary and fabricated metals               1,548         57,707
    Primary metals                              993         38,438
    Fabricated metal products                   555         19,269
  Machinery                                   2,470         69,499
    Agriculture, construction,
      and mining machinery                      512         16,597
    Industrial machinery                        199          8,597
    Other                                     1,759         44,306
  Computers and electronic products           2,640         70,893
    Computers and peripheral
      equipment                                 (D)          5,277
    Communications equipment                    464         12,750
    Semiconductors and other
      electronic components                     616         13,534
    Navigational, measuring, and
      other instruments                         (D)         11,932
    Other                                       545         27,401
  Electrical equipment, appliances,
    and components                            1,386         18,955
  Transportation equipment                   13,594        214,749
    Motor vehicles, bodies and
      trailers, and parts                    13,230        196,890
    Other                                       364         17,859
  Other                                       1,332            (D)

Wholesale trade                              26,077        719,566
  Motor vehicles and motor vehicle
    parts and supplies                       14,407        145,378
  Electrical goods                          720(D)          71,794
  Petroleum and petroleum products              (D)        226,846
  Other                                         (D)        275,547

Retail trade                                  4,814        129,662
  Food and beverage stores                    3,397         93,101
  Other                                       1,417         36,561

Information                                   5,488         84,391
  Publishing industries                         716         27,738
  Motion picture and sound
    recording industries                        326         11,118
  Telecommunications                          3,435         19,719
  Other                                       1,010         25,816

Finance (except depository
    institutions) and insurance               5,053        172,743
  Finance, except depository
    institutions                              3,716         60,967
  Insurance carriers and related
    activities                                1,337        111,776

Real estate and rental and leasing            6,584         21,350
  Real estate                                 4,845         15,535
  Rental and leasing (except real
    estate)                                     174          5,815

Professional, scientific, and
    technical services                        1,044         52,078
  Architectural, engineering,
    and related services                        174          6,339
  Computer systems design and
    related services                            337         12,676
  Management, scientific, and
    technical consulting                         37          1,744
  Other                                         496         31,318

Other industries                             19,005        196,639
  Agriculture, forestry, fishing,
    and hunting                                 260          2,119
  Mining                                      5,277         23,850
  Utilities                                   5,119         40,289
  Construction                                3,946         33,850
  Transportation and warehousing              2,048         36,435
  Management of nonbank companies
    and enterprises                              95          1,006
  Administration, support, and
    waste management                            342         21,711
  Health care and social assistance             346          8,848
  Accommodation and food services             1,197         23,619
  Miscellaneous services                        374          4,913

                                            Millions of dollars

                                          Net income    Value added

                                             (5)            (6)

      All industries                         68,101        514,957

Manufacturing                                30,367        239,641
  Food                                       -1,015          9,991
  Beverages and tobacco products              3,565          8,377
  Textiles, apparel, and leather
    products                                     33          1,366
  Paper                                        -167          4,690
  Printing and related support
    activities                                  293          3,297
  Petroleum and coal products                   (D)         21,340
  Chemicals                                  12,371         49,917
    Basic chemicals                             284          6,777
    Resins and synthetic rubber,
      fibers, and filaments                     259          5,558
    Pharmaceuticals and medicines             4,028         25,540
    Soap, cleaning compounds,
      and toilet preparations                 5,237          7,562
    Other                                     2,564          4,481
  Plastics and rubber products                  287         10,682
  Nonmetallic mineral products                1,596         16,582
  Primary and fabricated metals               2,290         16,044
    Primary metals                            1,902          9,758
    Fabricated metal products                   389          6,285
  Machinery                                    -983         21,136
    Agriculture, construction,
      and mining machinery                    1,308          3,990
    Industrial machinery                       -368          2,137
    Other                                    -1,922         15,009
  Computers and electronic products             821         18,946
    Computers and peripheral
      equipment                                 -53          1,306
    Communications equipment                   -250          3,628
    Semiconductors and other
      electronic components                     288          3,853
    Navigational, measuring, and
      other instruments                        -141          5,033
    Other                                       976          5,124
  Electrical equipment, appliances,
    and components                              213          4,894
  Transportation equipment                    3,973         36,651
    Motor vehicles, bodies and
      trailers, and parts                     3,785         32,165
    Other                                       188          4,486
  Other                                         (D)         15,728

Wholesale trade                              20,935         92,485
  Motor vehicles and motor vehicle
    parts and supplies                        4,528         13,239
  Electrical goods                              667          8,943
  Petroleum and petroleum products            8,835         33,147
  Other                                       6,905         37,157

Retail trade                                    495         28,989
  Food and beverage stores                       47         20,396
  Other                                         447          8,593

Information                                   1,870         30,975
  Publishing industries                         133         11,801
  Motion picture and sound
    recording industries                        310          2,421
  Telecommunications                           -243          6,327
  Other                                       1,671         10,426

Finance (except depository
    institutions) and insurance               6,986         24,957
  Finance, except depository
    institutions                              4,222         12,791
  Insurance carriers and related
    activities                                2,765         12,166

Real estate and rental and leasing            1,953         10,965
  Real estate                                 1,850          8,557
  Rental and leasing (except real
    estate)                                     103          2,408

Professional, scientific, and
    technical services                        1,292         16,881
  Architectural, engineering,
    and related services                       -350          2,292
  Computer systems design and
    related services                           -276          6,760
  Management, scientific, and
    technical consulting                      1,047            831
  Other                                         871          6,998

Other industries                              4,203         70,062
  Agriculture, forestry, fishing,
    and hunting                                  17            663
  Mining                                      1,197         11,173
  Utilities                                   1,007          8,699
  Construction                                  601          6,151
  Transportation and warehousing                -93         11,461
  Management of nonbank companies
    and enterprises                             898           -541
  Administration, support, and
    waste management                            645         14,615
  Health care and social assistance             230          4,412
  Accommodation and food services                95         11,266
  Miscellaneous services                       -393          2,165

                                         Millions of
                                           dollars

                                                        Thousands of
                                         Compensation    employees
                                         of employees

                                           (7)            (8)

      All industries                        324,523        5,116.4

Manufacturing                               150,103        2,039.9
  Food                                        6,823          109.0
  Beverages and tobacco products              3,263           43.4
  Textiles, apparel, and leather
    products                                  1,024           20.0
  Paper                                       3,145           46.3
  Printing and related support
    activities                                2,201           35.8
  Petroleum and coal products                 4,776           32.5
  Chemicals                                  30,154          299.2
    Basic chemicals                           4,005           39.4
    Resins and synthetic rubber,
      fibers, and filaments                   2,888           32.5
    Pharmaceuticals and medicines            16,969          146.5
    Soap, cleaning compounds,
      and toilet preparations                 3,063           38.0
    Other                                     3,229           42.7
  Plastics and rubber products                7,848          127.7
  Nonmetallic mineral products                9,732          155.8
  Primary and fabricated metals              10,521        1,559.0
    Primary metals                            5,942           82.2
    Fabricated metal products                 4,580           73.7
  Machinery                                  17,863          239.2
    Agriculture, construction,
      and mining machinery                    2,968           36.5
    Industrial machinery                      2,187           28.5
    Other                                    12,708          174.3
  Computers and electronic products          13,878          163.8
    Computers and peripheral
      equipment                               1,055           12.0
    Communications equipment                  3,437           29.8
    Semiconductors and other
      electronic components                   1,951           32.4
    Navigational, measuring, and
      other instruments                       3,914           54.6
    Other                                     3,521           34.9
  Electrical equipment, appliances,
    and components                            3,662           70.8
  Transportation equipment                   25,183          375.9
    Motor vehicles, bodies and
      trailers, and parts                    21,540          328.1
    Other                                     3,642           47.8
  Other                                      10,030          164.5

Wholesale trade                              41,018          528.4
  Motor vehicles and motor vehicle
    parts and supplies                        5,931           68.4
  Electrical goods                            6,569           77.1
  Petroleum and petroleum products            4,989           48.5
  Other                                      23,529          334.5

Retail trade                                 17,550          613.6
  Food and beverage stores                   12,791          437.3
  Other                                       4,759          176.3

Information                                  18,369          220.0
  Publishing industries                       8,439           95.2
  Motion picture and sound
    recording industries                      1,322           15.4
  Telecommunications                          2,536           37.5
  Other                                       6,073           72.0

Finance (except depository
    institutions) and insurance              32,022          200.7
  Finance, except depository
    institutions                             18,734           81.7
  Insurance carriers and related
    activities                               13,288          119.0

Real estate and rental and leasing            2,378           38.5
  Real estate                                 1,345           21.5
  Rental and leasing (except real
    estate)                                   1,033           17.1

Professional, scientific, and
    technical services                       14,017          171.4
  Architectural, engineering,
    and related services                      2,321           36.2
  Computer systems design and
    related services                          5,963           63.9
  Management, scientific, and
    technical consulting                        604            6.6
  Other                                       5,129           64.7

Other industries                             49,067        1,303.9
  Agriculture, forestry, fishing,
    and hunting                                 411            7.7
  Mining                                      4,512          598.0
  Utilities                                   2,884           35.6
  Construction                                5,038           65.2
  Transportation and warehousing              9,369          205.1
  Management of nonbank companies
    and enterprises                             376            4.2
  Administration, support, and
    waste management                         13,093          462.8
  Health care and social assistance           3,168           83.5
  Accommodation and food services             8,722          338.1
  Miscellaneous services                      1,493           41.9

                                           Millions of dollars

                                       U.S. exports   U.S. imports
                                         of goods       of goods
                                        shipped by     shipped to
                                        affiliates     affiliates

                                            (9)            (10)

      All industries                        153,902        378,111

Manufacturing                                88,956        141,628
  Food                                        5,731          2,329
  Beverages and tobacco products                850          1,739
  Textiles, apparel, and leather
    products                                    435            378
  Paper                                   1,080,272      2,803,334
  Printing and related support
    activities
  Petroleum and coal products                   (D)          7,528
  Chemicals                                  17,600         22,844
    Basic chemicals                           4,236          2,105
    Resins and synthetic rubber,
      fibers, and filaments                   3,741          4,181
    Pharmaceuticals and medicines             6,739         13,516
    Soap, cleaning compounds,
      and toilet preparations                   639            723
    Other                                     2,242          2,320
  Plastics and rubber products                3,300          5,309
  Nonmetallic mineral products                1,653          1,529
  Primary and fabricated metals               4,163          7,917
    Primary metals                            2,845          5,938
    Fabricated metal products                 1,318          1,979
  Machinery                                   8,637          7,878
    Agriculture, construction,
      and mining machinery                    3,136          1,918
    Industrial machinery                      1,778          1,013
    Other                                     3,723          4,947
  Computers and electronic products             (D)         18,753
    Computers and peripheral
      equipment                               1,144          2,501
    Communications equipment                  1,598            (D)
    Semiconductors and other
      electronic components                   3,973          3,136
    Navigational, measuring, and
      other instruments                       1,708          1,004
    Other                                       (D)            (D)
  Electrical equipment, appliances,
    and components                            2,108          2,093
  Transportation equipment                   27,380         55,703
    Motor vehicles, bodies and
      trailers, and parts                    25,370         53,276
    Other                                     2,010          2,427
  Other                                       4,285          4,492

Wholesale trade                              60,107        225,944
  Motor vehicles and motor vehicle
    parts and supplies                        8,681         73,473
  Electrical goods                            9,105         37,193
  Petroleum and petroleum products            8,339         31,659
  Other                                      33,982         83,620

Retail trade                                    212          4,187
  Food and beverage stores                        0            (D)
  Other                                         212            (D)

Information                                     988            624
  Publishing industries                         674            160
  Motion picture and sound
    recording industries                        (D)            (D)
  Telecommunications                              1            (D)
  Other                                         (D)            (D)

Finance (except depository
    institutions) and insurance                   0              0
  Finance, except depository
    institutions                                  0              0
  Insurance carriers and related
    activities                                    0              0

Real estate and rental and leasing              (D)            418
  Real estate                                     0              2
  Rental and leasing (except real
    estate)                                     (D)            416

Professional, scientific, and
    technical services                          (D)            279
  Architectural, engineering,
    and related services                        (D)            (D)
  Computer systems design and
    related services                             14             79
  Management, scientific, and
    technical consulting                          0              0
  Other                                         (D)            (D)

Other industries                              3,125          5,031
  Agriculture, forestry, fishing,
    and hunting                                 298             83
  Mining                                      2,587          1,526
  Utilities                                       1          3,133
  Construction                                   65             31
  Transportation and warehousing                 53            (D)
  Management of nonbank companies
    and enterprises                               0            (D)
  Administration, support, and
    waste management                             (*)             0
  Health care and social assistance              97            (D)
  Accommodation and food services                (*)             3
  Miscellaneous services                         24            (D)

                                       Millions of dollars

                                       Research and
                                       development
                                       performed by
                                        affiliates

                                           (11)

      All industries                         29,900

Manufacturing                                20,891
  Food                                          176
  Beverages and tobacco products                 60
  Textiles, apparel, and leather
    products                                     27
  Paper                                          63
  Printing and related support
    activities                                  (D)
  Petroleum and coal products                   (D)
  Chemicals                                  10,045
    Basic chemicals                             595
    Resins and synthetic rubber,
      fibers, and filaments                     255
    Pharmaceuticals and medicines             8,605
    Soap, cleaning compounds,
      and toilet preparations                   318
    Other                                       273
  Plastics and rubber products                  423
  Nonmetallic mineral products                  201
  Primary and fabricated metals                 237
    Primary metals                               81
    Fabricated metal products                   157
  Machinery                                   1,547
    Agriculture, construction,
      and mining machinery                      220
    Industrial machinery                        273
    Other                                     1,054
  Computers and electronic products           3,279
    Computers and peripheral
      equipment                                 144
    Communications equipment                  1,418
    Semiconductors and other
      electronic components                     369
    Navigational, measuring, and
      other instruments                       1,254
    Other                                        94
  Electrical equipment, appliances,
    and components                              238
  Transportation equipment                    3,728
    Motor vehicles, bodies and
      trailers, and parts                     3,307
    Other                                       421
  Other                                         666

Wholesale trade                               6,113
  Motor vehicles and motor vehicle
    parts and supplies                          527
  Electrical goods                            1,536
  Petroleum and petroleum products              (D)
  Other                                         (D)

Retail trade                                    (D)
  Food and beverage stores                        0
  Other                                         (D)

Information                                     898
  Publishing industries                         591
  Motion picture and sound
    recording industries                        (*)
  Telecommunications                            (D)
  Other                                         (D)

Finance (except depository
    institutions) and insurance                  10
  Finance, except depository
    institutions                                 10
  Insurance carriers and related
    activities                                    0

Real estate and rental and leasing                6
  Real estate                                   (*)
  Rental and leasing (except real
    estate)                                       6

Professional, scientific, and
    technical services                        1,442
  Architectural, engineering,
    and related services                         68
  Computer systems design and
    related services                            266
  Management, scientific, and
    technical consulting                          0
  Other                                       1,108

Other industries                                (D)
  Agriculture, forestry, fishing,
    and hunting                                  61
  Mining                                        341
  Utilities                                       0
  Construction                                    6
  Transportation and warehousing                (D)
  Management of nonbank companies
    and enterprises                             (*)
  Administration, support, and
    waste management                              4
  Health care and social assistance              34
  Accommodation and food services                 0
  Miscellaneous services                        (D)

(*) Less than $500.000.

(D) Suppressed to avoid disclosure of data of individual companies.

NOTE. Estimates for 2004 are preliminary.

Table 11.1. Selected Data of Majority-Owned Nonbank U.S. Affiliates
by Country of Ultimate Beneficial Owner, 2003

                                              Millions of dollars

                                                             Gross
                                           Total assets    property,
                                                           plant, and
                                                           equipment

                                               (1)            (2)

All countries                                 5,100,796      1,047,010

Canada                                          335,729         86,032

Europe                                        3,872,372        672,426
  Austria                                           (D)          1,091
  Belgium                                        54,415             16
  Denmark                                           (D)            (D)
  Finland                                        14,500          8,065
  France                                        511,221         67,947
  Germany                                       572,462        199,023
  Ireland                                        17,407          5,969
  Italy                                          35,078         11,566
  Luxembourg                                      6,827          3,662
  Netherlands                                   570,513         86,522
  Norway                                          6,506          2,033
  Spain,                                          7,786          3,593
  Sweden                                         32,226         14,709
  Switzerland                                   988,218         36,451
  United Kingdom                              1,030,657        209,518
  Other                                           5,574            (D)

Latin America and Other Western
    Hemisphere                                  239,651         60,987
  South and Central America                      33,624         16,173
    Brazil                                        4,196          1,656
    Mexico                                       18,601          6,432
    Panama                                          (D)            (D)
    Venezuela                                       (D)            (D)
    Other                                         1,503            636
  Other Western Hemisphere                      205,826         44,814
    Bahamas                                       1,202            464
    Bermuda                                     136,438         30,499
    Netherlands Antilles                            (D)            (D)
    United Kingdom Islands, Caribbean            58,830          7,724
    Other                                           (D)            (D)

Africa                                            4,707          3,836
  South Africa                                    3,747          3,404
  Other                                             960            432

Middle East                                      27,442         18,969
  Israel                                          5,821          1,476
  Kuwait                                          2,642          1,462
  Lebanon                                         1,221          1,190
  Saudi Arabia                                   12,231         10,726
  United Arab Emirates                            3,069          2,936
  Other                                           2,459          1,158

Asia and Pacific                                598,687        196,503
  Australia                                     105,188         20,591
  China                                           1,162            647
  Hong Kong                                       6,337          4,765
  India                                             695            145
  Japan                                         451,414        150,196
  Korea, Republic of                             13,997          6,524
  Malaysia                                        1,571          1,043
  New Zealand                                       344             66
  Singapore                                       8,065          4,595
  Taiwan                                          8,437          6,867
  Other                                           1,477          1,062

United States                                    22,206          8,258

Addenda:
  European Union (15) (1)                     2,874,435        632,432
  OPEC (2)                                       27,084         21,841

                                                Millions of dollars

                                              Expenditures
                                              for property      Sales
                                               plant, and
                                               equipment

                                                  (3)            (4)

                                                109,126      2,122,683
All countries
                                                  8,060        132,235
Canada
                                                 67,411      1,301,000
Europe                                              124          2,451
  Austria                                           936         27,431
  Belgium                                           350          9,725
  Denmark                                           485         16,955
  Finland                                         6,270        155,759
  France                                         25,206        302,110
  Germany                                           330         10,760
  Ireland                                           (D)         21,321
  Italy                                             441          3,293
  Luxembourg                                      7,875        207,555
  Netherlands                                       200          9,017
  Norway                                            466          6,073
  Spain,                                          1,231         39,686
  Sweden                                          3,537        118,021
  Switzerland                                    18,523        364,052
  United Kingdom                                    (D)          6,791
  Other

Latin America and Other Western                   4,886        127,857
    Hemisphere                                    1,221         52,536
  South and Central America                         167          7,728
    Brazil                                          (D)         14,656
    Mexico                                           43            (D)
    Panama                                          (D)            (D)
    Venezuela                                        98          3,064
    Other                                             4         75,321
  Other Western Hemisphere                           75            428
    Bahamas                                       2,166         58,039
    Bermuda                                         (D)          4,605
    Netherlands Antilles                            975         10,830
    United Kingdom Islands, Caribbean               (D)          1,418
    Other
                                                    161          5,258
Africa                                              139          4,859
  South Africa                                       22            400
  Other
                                                  1,796         36,033
Middle East                                         321          4,319
  Israel                                             51          1,323
  Kuwait                                             56            487
  Lebanon                                           765            (D)
  Saudi Arabia                                      461            549
  United Arab Emirates                              143            (D)
  Other
                                                 26,138        502,376
Asia and Pacific                                  1,803         26,203
  Australia                                          42          1,865
  China                                             539          5,457
  Hong Kong                                          18          1,593
  India                                          22,132        416,530
  Japan                                           1,061         32,134
  Korea, Republic of                                 63            782
  Malaysia                                            3          1,062
  New Zealand                                       105          5,863
  Singapore                                         227          9,856
  Taiwan                                            143          1,032
  Other
                                                    674         17,924
United States

Addenda:                                         63,527      1,169,554
  European Union (15) (1)                           (D)         54,756
  OPEC (2)
                                               Millions of dollars

                                              Net income    Value added

                                                 (5)            (6)

All countries                                    30,416        475,062

Canada                                              397         35,466

Europe                                           24,151        313,054
  Austria                                            21            649
  Belgium                                           662          6,927
  Denmark                                           126          3,019
  Finland                                          -202          3,709
  France                                            -82         41,186
  Germany                                           570         63,242
  Ireland                                          -231          3,226
  Italy                                             133          5,360
  Luxembourg                                        -23            908
  Netherlands                                     8,708         43,327
  Norway                                            -55          1,113
  Spain,                                           -167          1,125
  Sweden                                            259         12,088
  Switzerland                                     1,620         31,217
  United Kingdom                                 12,925         94,230
  Other                                            -132          1,707

Latin America and Other Western
    Hemisphere                                   -1,476         34,453
  South and Central America                         467         10,750
    Brazil                                           38            611
    Mexico                                          102          2,964
    Panama                                          (D)            (D)
    Venezuela                                       (D)            (D)
    Other                                            -7            308
  Other Western Hemisphere                       -1,943         23,703
    Bahamas                                          69            200
    Bermuda                                      -1,796         18,541
    Netherlands Antilles                           -404            (D)
    United Kingdom Islands, Caribbean               229          2,487
    Other                                           -41           (D)

Africa                                             -113            916
  South Africa                                     -124            864
  Other                                              11             51

Middle East                                         521          8,391
  Israel                                             80            923
  Kuwait                                             32            250
  Lebanon                                             5            222
  Saudi Arabia                                      (D)          5,615
  United Arab Emirates                               58            313
  Other                                             (D)          1,067

Asia and Pacific                                  5,931         77,155
  Australia                                         743          8,121
  China                                             -43            223
  Hong Kong                                          74          1,333
  India                                              -2            486
  Japan                                           5,763         62,168
  Korea, Republic of                                 60          1,993
  Malaysia                                           10            313
  New Zealand                                         4             86
  Singapore                                         482            860
  Taiwan                                           -166          1,353
  Other                                             -28            219

United States                                     1,004          5,608

Addenda:
  European Union (15) (1)                            23        279,474
  OPEC (2)                                          940           (D)

                                             Millions
                                            of dollars

                                                           Thousands of
                                            Compensation    employees
                                            of employees

                                                (7)            (8)

All countries                                   316,369        5,244.4

Canada                                           24,194          396.0

Europe                                          217,395        3,669.9
  Austria                                           468            8.7
  Belgium                                         3,978          133.3
  Denmark                                         2,364           57.4
  Finland                                         2,755           36.0
  France                                         28,932          456.2
  Germany                                        47,005          678.6
  Ireland                                         2,256           35.7
  Italy                                           3,955           89.8
  Luxembourg                                        612           15.0
  Netherlands                                    28,126          500.4
  Norway                                            983           13.6
  Spain,                                            876          202.0
  Sweden                                          9,088          215.5
  Switzerland                                    28,053          404.4
  United Kingdom                                 57,303          993.9
  Other                                             642           10.9

Latin America and Other Western
    Hemisphere                                   22,227          337.7
  South and Central America                       3,896           68.7
    Brazil                                          355            5.2
    Mexico                                        2,294           46.3
    Panama                                          (D)              I
    Venezuela                                       (D)              H
    Other                                           242            5.0
  Other Western Hemisphere                       16,330          269.0
    Bahamas                                         100            2.5
    Bermuda                                      14,588          207.9
    Netherlands Antilles                            (D)              J
    United Kingdom Islands, Caribbean             1,715           26.4
    Other                                           (D)              J

Africa                                              737            9.6
  South Africa                                      703            9.0
  Other                                              34            0.6

Middle East                                       2,359           47.2
  Israel                                            548           10.0
  Kuwait                                             56            1.6
  Lebanon                                           116            2.5
  Saudi Arabia                                      708            9.4
  United Arab Emirates                               87            1.9
  Other                                             844           22.0

Asia and Pacific                                 46,121          739.9
  Australia                                       3,838           58.5
  China                                             208            2.9
  Hong Kong                                         573           14.2
  India                                             441            7.3
  Japan                                          38,146          600.3
  Korea, Republic of                                885           12.2
  Malaysia                                          228            4.4
  New Zealand                                        31            0.4
  Singapore                                         719           17.9
  Taiwan                                            929           16.4
  Other                                             124            5.5

United States                                     3,335           44.0

Addenda:
  European Union (15) (1)                       187,894        3,244.7
  OPEC (2)                                          (D)              J

                                               Millions of dollars

                                           U.S. exports   U.S. imports
                                             of goods       of goods
                                            shipped by     shipped to
                                            affiliates     affiliates

                                               (9)            (10)

All countries                                   147,643        356,756

Canada                                            6,405         23,012

Europe                                           75,320        145,832
  Austria                                           219            602
  Belgium                                           937            670
  Denmark                                           559          1,667
  Finland                                         1,727          4,802
  France                                          9,744         14,489
  Germany                                        32,326         62,062
  Ireland                                           110            (D)
  Italy                                           1,611          3,235
  Luxembourg                                        156            620
  Netherlands                                     5,068         14,893
  Norway                                            255          1,176
  Spain,                                            360          1,060
  Sweden                                          3,374          4,860
  Switzerland                                     4,941          9,173
  United Kingdom                                 13,608         25,568
  Other                                             124            (D)

Latin America and Other Western
    Hemisphere                                   13,352         19,206
  South and Central America                       2,610         14,767
    Brazil                                          (D)          3,667
    Mexico                                          811          2,156
    Panama                                          (D)            (D)
    Venezuela                                       (D)            (D)
    Other                                           106          1,663
  Other Western Hemisphere                       10,742          4,439
    Bahamas                                           4              9
    Bermuda                                      10,052          3,203
    Netherlands Antilles                            (D)            119
    United Kingdom Islands, Caribbean               (D)          1,090
    Other                                            22             18

Africa                                              475            276
  South Africa                                      474            275
  Other                                            (*)               2

Middle East                                         702          5,203
  Israel                                            222            (D)
  Kuwait                                            (D)            (*)
  Lebanon                                           (D)              1
  Saudi Arabia                                      (D)            (D)
  United Arab Emirates                              (D)             34
  Other                                              56            (D)

Asia and Pacific                                 48,333        160,200
  Australia                                         292            482
  China                                             (D)            247
  Hong Kong                                         213          1,024
  India                                              10             23
  Japan                                          41,010        133,170
  Korea, Republic of                              5,205         22,081
  Malaysia                                          (D)             21
  New Zealand                                       (D)            812
  Singapore                                         (D)            439
  Taiwan                                            798          1,651
  Other                                              19            250

United States                                     3,056          3,027

Addenda:
  European Union (15) (1)                        70,003        134,936
  OPEC (2)                                          775            (D)

                                         Millions of dollars

                                             Research and
                                             development
                                             performed by
                                              affiliates

                                                 (11)

All countries                                      29,803

Canada                                              1,380

Europe                                             22,518
  Austria                                              16
  Belgium                                             117
  Denmark                                             100
  Finland                                             (D)
  France                                            3,777
  Germany                                           5,976
  Ireland                                            (D)
  Italy                                               225
  Luxembourg                                          (D)
  Netherlands                                       1,612
  Norway                                               44
  Spain,                                               44
  Sweden                                              261
  Switzerland                                           4
  United Kingdom                                    5,723
  Other                                                 6

Latin America and Other Western
    Hemisphere                                        (D)
  South and Central America                           (D)
    Brazil                                              0
    Mexico                                             14
    Panama
    Venezuela                                         (DO
    Other                                             (*)
  Other Western Hemisphere                          1,180
    Bahamas                                           (*)
    Bermuda                                           853
    Netherlands Antilles                              (D)
    United Kingdom Islands, Caribbean                 (D)
    Other                                             (*)

Africa                                                 31
  South Africa                                         31
  Other                                                 0

Middle East                                           (D)
  Israel                                              106
  Kuwait                                                0
  Lebanon                                             (*)
  Saudi Arabia                                        (D)
  United Arab Emirates                                  0
  Other                                                71

Asia and Pacific                                    3,763
  Australia                                             0
  China                                                 5
  Hong Kong                                           (D)
  India                                               (*)
  Japan                                             3,470
  Korea, Republic of                                  (D)
  Malaysia                                            (D)
  New Zealand                                           1
  Singapore                                            16
  Taiwan                                              102
  Other                                                 1

United States                                         (D)

Addenda:
  European Union (15) (1)                          18,676
  OPEC (2)                                            (D)

* Less than $500,000.

(D) Suppressed to avoid disclosure of data of individual companies.

(1.) The European Union (15) comprises Austria, Belgium, Denmark,
Finland. France, Germany, Greece. Ireland, Italy, Luxembourg, the
Netherlands, Portugal, Spain, Sweden, and the United Kingdom.

(2.) OPEC is the Organization of Petroleum Exporting Countries. Its
members are Algeria, Indonesia, Iran, Iraq. Kuwait, Libya, Nigeria,
Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

NOTES. The following ranges are given in employment cells that are
suppressed: A--1 to 499; F--500 to 999; G--1,000 to 2,499; H--2,500
to 4,999; I--5,000 to 9,999; J--10,000 to 24,999; K--25,000 to 49,999;
L--50,000 to 99,999; M--100,000 or more.

Estimates for 2003 are revised.

Table 11.2. Selected Data of Majority-Owned Nonbank U.S. Affiliates
by Country of Ultimate Beneficial Owner, 2004

                                            Millions of dollars

                                                            Gross
                                         Total assets     property,
                                                          plant, and
                                                          equipment

                                              (1)            (2)

      All countries                          5,539,810      1,060,181

Canada                                         372,276         98,216

Europe                                       4,192,440        663,860
  Austria                                        2,201          1,184
  Belgium                                       78,474         15,971
  Denmark                                       21,102          3,566
  Finland                                       13,789          6,344
  France                                       596,645         67,787
  Germany                                      632,103        203,216
  Ireland                                       17,644          6,396
  Italy                                         38,868         14,382
  Luxembourg                                     7,007          4,382
  Netherlands                                  574,862         73,485
  Norway                                         6,463          1,854
  Spain                                          7,417          3,326
  Sweden                                        36,310         14,920
  Switzerland                                1,134,495         37,059
  United Kingdom                             1,018,285        204,681
  Other                                          6,775          3,307

Latin America and Other Western
    Hemisphere                                 272,328         62,617
  South and Central America                     35,141         16,951
    Brazil                                       4,644          1,789
    Mexico                                      19,130          6,594
    Panama                                       1,109            (D)
    Venezuela                                      (D)            (D)
    Other                                          (D)            766
  Other Western Hemisphere                     237,186         45,666
    Bahamas                                        893            353
    Bermuda                                    161,482         30,919
    Netherlands Antilles                           (D)            (D)

    United Kingdom Islands, Caribbean           64,721          7,735
    Other                                          (D)            (D)

Africa                                           5,028          3,952
  South Africa                                   4,020          3,511
  Other                                          1,008            442

Middle East                                     31,465         18,387
  Israel                                        11,183          1,909
  Kuwait                                         1,914          1,164
  Lebanon                                        1,277          1,338
  Saudi Arabia                                  11,310          9,738
  United Arab Emirates                           3,488          3,254
  Other                                          2,294            984

Asia and Pacific                               645,825        204,686
  Australia                                    108,847         23,340
  China                                          1,363            692
  Hong Kong                                      6,863          5,020
  India                                            852            166
  Japan                                        492,356        154,726
  Korea, Republic of                            16,617          7,954
  Malaysia                                       1,556          1,029
  New Zealand                                      429            103
  Singapore                                      7,101          3,613
  Taiwan                                         8,427          7,050
  Other                                          1,413            992

United States                                   20,447          8,463

Addenda:
  European Union (25) (1)                    3,047,495        623,123
  OPEC (2)                                      26,284         21,261

                                            Millions of dollars

                                         Expenditures
                                         for property,      Sales
                                          plant, and
                                           equipment

                                                   (3)            (4)

      All countries                            108,149      2,303,543

Canada                                           9,483        144,474

Europe                                          63,755      1,391,269
  Austria                                          130          2,893
  Belgium                                          897         31,438
  Denmark                                          565         10,269
  Finland                                          487         16,505
  France                                         6,366        172,383
  Germany                                       24,059        319,726
  Ireland                                          480         12,368
  Italy                                          1,074         23,748
  Luxembourg                                       (D)          3,094
  Netherlands                                    6,019        224,915
  Norway                                           229          9,022
  Spain                                            292          6,675
  Sweden                                         1,233         44,037
  Switzerland                                    3,257        129,717
  United Kingdom                                17,496        372,179
  Other                                            (D)         10,302

Latin America and Other Western
    Hemisphere                                   5,615        146,554
  South and Central America                        (D)         61,411
    Brazil                                         202          7,678
    Mexico                                         408         16,695
    Panama                                          52            (D)
    Venezuela                                      (D)            (D)
    Other                                           83          3,119
  Other Western Hemisphere                         (D)         85,142
    Bahamas                                         64            294
    Bermuda                                      2,659         65,592
    Netherlands Antilles                           308            (D)

    United Kingdom Islands, Caribbean            1,233         12,454
    Other                                          (D)            (D)

Africa                                             168          6,232
  South Africa                                     141          5,656
  Other                                             27            576

Middle East                                      1,917         43,906
  Israel                                           336          6,031
  Kuwait                                            48            723
  Lebanon                                           56            527
  Saudi Arabia                                     781            (D)
  United Arab Emirates                             543            963
  Other                                            152            (D)

Asia and Pacific                                26,444        552,389
  Australia                                      1,852         32,998
  China                                             55          2,086
  Hong Kong                                        581          5,786
  India                                             19          1,961
  Japan                                         21,731        447,225
  Korea, Republic of                             1,610         40,462
  Malaysia                                          61            807
  New Zealand                                        8          1,191
  Singapore                                        123          6,666
  Taiwan                                           303         11,920
  Other                                            102          1,285

United States                                      766         18,719

Addenda:
  European Union (25) (1)                       60,099      1,245,265
  OPEC (2)                                         (D)         68,459

                                            Millions of dollars

                                          Net income     Value added

                                              (5)            (6)

      All countries                             68,101        514,957

Canada                                           4,863         40,333

Europe                                          47,581        336,453
  Austria                                           66            747
  Belgium                                        1,276          7,895
  Denmark                                          197          3,256
  Finland                                           88          3,808
  France                                         3,788         43,071
  Germany                                        7,008         66,424
  Ireland                                         -147          3,654
  Italy                                              4          6,161
  Luxembourg                                       112          1,054
  Netherlands                                   10,811         43,775
  Norway                                            94            881
  Spain                                           -186          1,290
  Sweden                                           321         12,540
  Switzerland                                    2,096         32,430
  United Kingdom                                21,771        107,220
  Other                                            281          2,225

Latin America and Other Western
    Hemisphere                                   2,506         38,609
  South and Central America                        823         11,896
    Brazil                                         106            599
    Mexico                                        -137          3,167
    Panama                                         (D)            (D)
    Venezuela                                      (D)            (D)
    Other                                           31            350
  Other Western Hemisphere                       1,683         26,713
    Bahamas                                         49             64
    Bermuda                                      2,213         21,619
    Netherlands Antilles                           (D)            (D)

    United Kingdom Islands, Caribbean             -269          2,200
    Other                                          (D)            (D)

Africa                                             -45          1,101
  South Africa                                    -129            973
  Other                                             84            128

Middle East                                        894          9,502
  Israel                                          -536          1,191
  Kuwait                                           120            (D)
  Lebanon                                            2            231
  Saudi Arabia                                     (D)          6,428
  United Arab Emirates                             106            506
  Other                                            (D)            (D)

Asia and Pacific                                11,347         83,322
  Australia                                      2,137          9,462
  China                                             47            366
  Hong Kong                                         97          1,406
  India                                             43            620
  Japan                                          8,909         66,054
  Korea, Republic of                               456          2,422
  Malaysia                                          13            315
  New Zealand                                       -6            103
  Singapore                                       -420            781
  Taiwan                                            33          1,596
  Other                                             38            196

United States                                      956          5,636

Addenda:
  European Union (25) (1)                       45,248        301,481
  OPEC (2)                                       2,186         14,560

                                            Millions of dollars

                                                         Thousands of
                                         Compensation     employees
                                         of employees

                                              (7)            (8)

      All countries                            324,523        5,116.4

Canada                                          24,432          382.8

Europe                                         221,481        3,548.0
  Austria                                          513            9.6
  Belgium                                        4,094          130.4
  Denmark                                        2,589           60.6
  Finland                                        2,892           36.2
  France                                        30,386          451.6
  Germany                                       47,588          666.6
  Ireland                                        2,533           37.4
  Italy                                          4,130          102.4
  Luxembourg                                       647           14.8
  Netherlands                                   27,530          481.1
  Norway                                           685            9.5
  Spain                                            833           20.2
  Sweden                                         9,227          207.8
  Switzerland                                   30,104          383.2
  United Kingdom                                56,873        9,208.0
  Other                                            857           13.5

Latin America and Other Western
    Hemisphere                                  23,245          326.3
  South and Central America                      4,116           70.8
    Brazil                                         387            5.4
    Mexico                                       2,465           51.1
    Panama                                         (D)              H
    Venezuela                                      (D)              H
    Other                                          249            5.3
  Other Western Hemisphere                      19,130          255.5
    Bahamas                                         76            1.6
    Bermuda                                     15,068          194.7
    Netherlands Antilles                           (D)              J

    United Kingdom Islands, Caribbean            1,769           25.3
    Other                                          (D)              J

Africa                                             770            9.6
  South Africa                                     732            8.9
  Other                                             38            0.7

Middle East                                      2,320           45.3
  Israel                                           751           12.5
  Kuwait                                           (D)              G
  Lebanon                                          122            2.5
  Saudi Arabia                                     636            7.9
  United Arab Emirates                             111            1.9
  Other                                            (D)              J

Asia and Pacific                                48,893          764.0
  Australia                                      4,484           63.4
  China                                            236            3.3
  Hong Kong                                        646           14.4
  India                                            513            9.7
  Japan                                         39,927          614.2
  Korea, Republic of                             1,020           14.1
  Malaysia                                         235            4.5
  New Zealand                                       57            0.8
  Singapore                                        702           18.5
  Taiwan                                           959           16.1
  Other                                            114           40.5

United States                                    3,381           40.5

Addenda:
  European Union (25) (1)                      190,072        3,146.3
  OPEC (2)                                       1,326           15.7

                                            Millions of dollars

                                         U.S. exports    U.S. imports
                                           of goods        of goods
                                          shipped by      shipped to
                                          affiliates      affiliates

                                              (9)            (10)

      All countries                            153,902        378,111

Canada                                           6,551         23,919

Europe                                          78,059        151,055
  Austria                                          240            656
  Belgium                                        1,271          1,110
  Denmark                                          665              2
  Finland                                        2,195          5,575
  France                                         9,365         15,393
  Germany                                       32,343         61,744
  Ireland                                          114            349
  Italy                                          1,904          3,583
  Luxembourg                                       170            634
  Netherlands                                    5,406         15,266
  Norway                                           249          1,157
  Spain                                            519            867
  Sweden                                         3,678          5,766
  Switzerland                                    5,052          9,735
  United Kingdom                                14,752         26,339
  Other                                            136            617

Latin America and Other Western
    Hemisphere                                  11,058         22,161
  South and Central America                      1,927         17,032
    Brazil                                         610          4,140
    Mexico                                         835           (D)
    Panama                                         (D)             18
    Venezuela                                      (D)           (D)
    Other                                          144          1,479
  Other Western Hemisphere                       9,131          5,130
    Bahamas                                        (D)            (D)
    Bermuda                                      6,375          3,698
    Netherlands Antilles                           (D)            111

    United Kingdom Islands, Caribbean               75            (D)
    Other                                           25             18

Africa                                             409            331
  South Africa                                     409            329
  Other                                            (*)              2

Middle East                                        566          6,642
  Israel                                           252            (D)
  Kuwait                                             1            (*)
  Lebanon                                          (D)              1
  Saudi Arabia                                     (D)            (D)
  United Arab Emirates                             (D)            (D)
  Other                                            135             85

Asia and Pacific                                54,437        170,985
  Australia                                        563            512
  China                                            (D)            (D)
  Hong Kong                                        333            976
  India                                             15             17
  Japan                                         44,260        136,924
  Korea, Republic of                             7,295         28,632
  Malaysia                                         (D)             16
  New Zealand                                      (D)            847
  Singapore                                        (D)            465
  Taiwan                                         1,074          2,043
  Other                                             32            (D)

United States                                    2,821          3,018

Addenda:
  European Union (25) (1)                       72,636        139,533
  OPEC (2)                                         464            (D)

                                            Millions of dollars

                                         Research and
                                          development
                                         performed by
                                          affiliates

                                                  (11)

      All countries                             29,900

Canada                                           1,458

Europe                                          22,648
  Austria                                           12
  Belgium                                          121
  Denmark                                          135
  Finland                                          601
  France                                         3,738
  Germany                                        5,929
  Ireland                                          (D)
  Italy                                            221
  Luxembourg                                       (D)
  Netherlands                                    1,316
  Norway                                            47
  Spain                                             41
  Sweden                                           271
  Switzerland                                    4,004
  United Kingdom                                 5,924
  Other                                              5

Latin America and Other Western
    Hemisphere                                     (D)
  South and Central America                        (D)
    Brazil                                           0
    Mexico                                          17
    Panama                                         (D)
    Venezuela                                        0
    Other                                            3
  Other Western Hemisphere                       1,063
    Bahamas                                        (*)
    Bermuda                                       -722
    Netherlands Antilles                           (D)

    United Kingdom Islands, Caribbean              (D)
    Other                                          (*)

Africa                                              36
  South Africa                                      36
  Other                                              0

Middle East                                        (D)
  Israel                                           139
  Kuwait                                             0
  Lebanon                                          (*)
  Saudi Arabia                                     (D)
  United Arab Emirates                               0
  Other                                             68

Asia and Pacific                                 3,725
  Australia                                         37
  China                                              6
  Hong Kong                                        (D)
  India                                              0
  Japan                                          3,413
  Korea, Republic of                               (D)
  Malaysia                                         (D)
  New Zealand                                        1
  Singapore                                         19
  Taiwan                                           101
  Other                                              1

United States                                      (D)

Addenda:
  European Union (25) (1)                       18,592
  OPEC (2)                                         (D)

* Less than 8500,000.

(D) Suppressed to avoid disclosure of data of individual companies.

(1.) The European Union (25) comprises Austria, Belgium, Cyprus, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,
Ireland, Italy Latvia, Lithuania, Luxembourg, Malta, the Netherlands,
Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and the United
Kingdom.

(2.) OPEC is the Organization of Petroleum Exporting Countries. Its
members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria,
Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

NOTES. The following ranges are given in employment cells that are
suppressed: A--1 to 499: F--500 to 999; G--1,000 to 2,499; H--2,500
to 4,999; I--5,000 to 9,999; J--10,000 to 24,999; K--25,000 to 49,999:
L--50,000 to 99,999; M--100,000 or more.

Estimates for 2004 are preliminary.

Chart 2. Investing-Country Shares of Value
Added of U.S. Affiliates, 2004

Percent

Canada            (7.8%)
France            (8.4%)
Germany          (12.9%)
Netherlands       (8.5%)
Switzerland       (6.3%)
United Kingdom   (20.8%)
Japan            (12.8%)
Other            (22.5%)

U.S. Bureau of Economic Analysis

Note: Table made from pie chart.