U.S. affiliates of foreign companies: operations in 2003.

Zeile, William J.

PRELIMINARY results from the Bureau of Economic Analysis' latest annual survey of foreign direct investment in the United States (FDIUS) indicate that growth in the current-dollar value added of majority-owned nonbank U.S. affiliates of foreign companies slowed in 2003, following a sharp rebound in 2002. However, employment by affiliates decreased for the third consecutive year, partly as a result of foreign selloffs of U.S. companies. Acquisitions of new affiliates continued to lag behind the levels reached in previous years.

In 2003, the current-dollar value added of majority-owned nonbank U.S. affiliates ("U.S. affiliates") increased 6 percent, from $461 billion to $486 billion, following a 10-percent increase in 2002 (table 1). (1) In comparison, total U.S. current-dollar value added in nonbank private industries increased 5 percent, compared with a 4-percent increase in 2002. As a result, after increasing in 2002, the affiliate share of value added in private industries remained virtually flat in 2003, at 5.8 percent, just below the 5.9-percent peak reached in 2000 (chart 1).

As in 2002, the increase in affiliate value added in 2003 largely resulted from expansions in existing affiliate operations rather than from new foreign investment, which remained below the levels reached in 1998-2000. (2) The slowdown in growth for affiliates in 2003 partly represented a dampening of momentum from the quick rebound in 2002, following a 7-percent drop in value added in 2001. Several affiliates that had experienced large increases in value added in 2002 experienced much slower growth in 2003; for most of these affiliates, the large increases in 2002 reversed reductions in value added in 2001. In addition, the slowdown in 2003 reflected selloffs of foreign ownership interests in a number of U.S. companies, including subsidiary units of large affiliates. (3)

Reductions in foreign ownership--through selloffs and through company reorganizations--were primarily responsible for the 3-percent drop in affiliate employment in 2003, which followed decreases of 3 percent in 2002 and 1 percent in 2001. Reductions in employment associated with ongoing affiliate operations also contributed to the decrease in 2003 but were less prominent than those in 2002. Total U.S. employment in private industries, which had decreased more than 1 percent in 2002, decreased 0.5 percent in 2003. The affiliate share of private industry employment thus decreased, from 4.9 percent in 2002 to 4.7 percent in 2003. (4)

The following are additional highlights of the operations of U.S. affiliates in 2003.

* By country of ownership, the United Kingdom remained the largest investing country as measured by affiliate value added, followed by Japan and Germany. The Netherlands' rank increased from fifth to fourth. France ranked fifth.

* By industrial sector, affiliates' shares of U.S. employment were highest in mining and in manufacturing. Affiliates' shares increased substantially in the utilities and information sectors and decreased substantially in transportation and warehousing and in mining (where the share remained high).

* By state, the affiliate share of U.S. employment was highest in South Carolina, followed by Hawaii. South Carolina also had the highest share in 2002; before 2002, the affiliate share had been highest in Hawaii.

* Affiliates continued to account for large shares of U.S. exports and imports of goods. The affiliate share of exports increased from 20 percent in 2002 to 21 percent in 2003; the affiliate share of imports decreased from 29 percent to 28 percent.

This article examines changes in the value added, employment, and trade in goods of U.S. affiliates in 2003, 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 2003, the current-dollar value added of majority-owned nonbank U.S. affiliates increased 6 percent, from $461 billion to $486 billion. In comparison, total U.S. current-dollar value added in private nonbank industries increased 5 percent. (5) The share of U.S. value added in private industries accounted for by affiliates remained unchanged, at 5.8 percent.

By country of ownership

In 2003, 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 BENs annual surveys of U.S.-affiliate operations), the largest investing country in terms of affiliate value added was the United Kingdom; in 2003, British-owned affiliates accounted for 20 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. Japanese- and German-owned affiliates accounted for the next largest shares of affiliate value added (13 percent each).

For each of the seven major investing countries, the value added of affiliates increased in 2003. In percentage terms, the increases were most pronounced for affiliates with UBOs in the Netherlands and Switzerland. For Netherlands-owned affiliates, value added increased 13 percent, pushing the Netherlands ahead of France to rank as the fourth-largest investing country in 2003; much of this increase reflected improvements in the operating performance of Netherlands-owned affiliates in the insurance and petroleum refining industries. (6) The value added of Swiss-owned affiliates increased 12 percent, largely as a result of increased sales by affiliates in the insurance, nonbank finance, and pharmaceutical manufacturing industries.

For Canadian-, French-, and German-owned affiliates, value added increased at a substantially slower pace in 2003 than in 2002. For all three countries, the robust growth rates in 2002 reversed decreases in value added in 2001; these reversals (and the subsequent slowdowns in growth in 2003) were particularly pronounced for several affiliates in the manufacturing and information sectors.

Among other investing countries, the value added of Australian-owned affiliates increased 25 percent, reflecting both new acquisitions and increased production by existing affiliates. For affiliates with UBOs in the "United Kingdom Islands, Caribbean," value added increased 20 percent, mainly because of expanded sales by existing affiliates.

Affiliate value added decreased 9 percent for affiliates with UBOs in Mexico and decreased 4 percent for affiliates with UBOs in Bermuda. For both countries, the decreases reflected reductions in sales by several large affiliates. For Bermuda-owned affiliates, much of the decrease can also be attributed to affiliate selloffs. The decrease in 2003 marked the first decrease in value added for Bermuda-owned affiliates since 1991. In 1997-2002, the value added of Bermuda-owned affiliates increased more than sixfold, partly as a result of inversions in ownership for multinational companies that had previously been headquartered in the United States or that had been units of U.S.-headquartered companies. (7)

By industry of affiliate

In 2003, affiliates in manufacturing accounted for 47 percent of the value added of all majority-owned nonbank affiliates (table 3). (8) 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 (17 percent). (9)

Much of the increase in affiliate value added in 2003 was accounted for by affiliates in two sectors: "Finance (except depository institutions) and insurance" and wholesale trade. In "finance (except depository institutions) and insurance," the value added of affiliates increased $10 billion, or 68 percent, reflecting both new acquisitions and improvements in the ongoing operations of affiliates that had large operating losses in 2001-2002. In wholesale trade, the value added of affiliates increased $8 billion, or 11 percent, in 2003, mainly because of expanded sales by affiliates specializing in petroleum and in motor vehicles.

In manufacturing, the value added of affiliates decreased 1 percent in 2003 after increasing 14 percent in 2002. The 2003 decrease reflected reductions in affiliate production in several manufacturing industries. Among these industries, the value added of affiliates in primary metals decreased 20 percent, partly as a result of selloffs. In the machinery industry, affiliate value added decreased 6 percent, largely because of reduced production from ongoing affiliate operations. In food manufacturing, affiliate value added dropped 35 percent; however, most of this decrease reflected shifts within manufacturing in the industry classification of affiliates that had sales in multiple industries. (10)

Among other manufacturing industries, the value added of affiliates in electrical equipment increased 23 percent. The increase reflected a combination of new foreign investments, reductions in affiliate operating losses, and shifts in the industry classification of affiliates. The value added of affiliates in beverages and tobacco products increased 22 percent, mainly reflecting foreign acquisitions of U.S. companies. The value added of affiliates in the chemical industry increased 11 percent, stemming mainly from shifts in industry classification, new acquisitions, and expanded sales in the pharmaceutical industry.

Employment

In 2003, employment by majority-owned nonbank U.S. affiliates of foreign companies decreased 3 percent, from 5.4 million employees to 5.2 million employees (table 1). The decrease followed decreases of 3 percent in 2002 and 1 percent in 2001. In each of these years, employment by affiliates decreased at a faster pace than total U.S. employment in private industries, partly because of the relative concentration of affiliate employment in industrial sectors in which reductions in employment for all U.S. businesses were relatively large. For example, in 2003, employment in manufacturing, which decreased 5 percent for all U.S. businesses, accounted for 34 percent of employment by U.S. affiliates, but it accounted for only 13 percent of total U.S. employment in private industries. In contrast, employment in health care and social assistance, which increased 2 percent for all U.S. businesses, accounted for less than 2 percent of employment by affiliates, but it accounted for 13 percent of total U.S. private industry employment.

The faster decline in employment by affiliates in 2001-2003 also reflected reductions in foreign ownership of U.S. companies, particularly in 2003. As a result of this decline, the affiliate share of total U.S. employment in private industries, after peaking at 5.0 percent in 2000, decreased to 4.9 percent in 2001 and 2002 and to 4.7 percent in 2003.

By industry

In 2003, as in earlier years, the affiliate share of U.S. employment at the sector level was highest in mining (19.5 percent), followed by manufacturing (12.0 percent) (table 4). (11) Within manufacturing, the affiliate share was highest in chemicals (28.3 percent), followed by motor vehicles, bodies and trailers, and parts (24.8 percent), nonmetallic mineral products (23.6 percent), and electrical equipment, appliances, and components (19.4 percent).

In mining, the affiliate share of employment in 2003 was less than the share in 2002, partly reflecting foreign selloffs of U.S. companies. The affiliate share had jumped from 14.6 percent in 2001 to 20.6 percent in 2002 as a result of foreign acquisitions.

In manufacturing, the affiliate share was slightly higher in 2003 than in 2002 despite a 4-percent decrease in affiliate employment, reflecting an even sharper decrease in manufacturing employment by all U.S. businesses. Within manufacturing, the affiliate shares increased significantly in motor vehicles, bodies and trailers, and parts (from 23.3 percent in 2002 to 24.8 percent in 2003), in nonmetallic mineral products (from 22.5 percent to 23.6 percent), and in food, beverage, and tobacco products (from 7.7 percent to 8.6 percent). In the motor vehicles industry, employment by affiliates increased 3 percent in the face of a 3-percent reduction in total U.S. employment in the industry, reflecting expanded production in auto plants by German- and Japanese-owned affiliates. In nonmetallic mineral products, affiliate employment increased slightly despite a 4-percent reduction in industry employment, largely as a result of new acquisitions by existing affiliates. Acquisitions of new affiliates by foreign investors boosted affiliate employment in the food, beverage, and tobacco products industry, which increased 9 percent in the face of a 2-percent decrease in industry employment.

Among other manufacturing industries, the affiliate share of employment in computers and electronic products decreased from 13.2 percent to 12.4 percent. The share decreased for a third consecutive year after peaking at 15.8 percent in 2000; employment by affiliates decreased 15 percent in 2003, following decreases of 18 percent in 2002 and 16 percent in 2001. The affiliate share in electrical equipment, appliances, and components decreased from 20.3 percent to 19.4 percent; employment by affiliates decreased 12 percent in 2003. (12) In both industries, the decreases in employment reflected a combination of affiliate selloffs of subsidiary units and workforce reductions associated with unfavorable market conditions.

Among other industrial sectors, the affiliate shares of employment in the utilities and information sectors increased significantly in 2003. In utilities, the affiliate share increased from 5.3 percent to 6.1 percent; employment by affiliates increased 12 percent, as gains in employment from new foreign investments more than made up for reductions in employment connected with ongoing affiliate operations. (In 1998-2002, affiliate employment had increased more than sixfold--pushing the affiliate share from less than 1 percent to more than 5 percent--largely as a result of several foreign acquisitions in the electric power industry.) In the information sector, the affiliate share of employment increased from 6.1 percent in 2002 to 6.8 percent in 2003; employment by affiliates increased 5 percent in the face of a 5-percent decrease for all U.S. businesses, partly because of acquisitions in the motion picture and data processing services industries.

In transportation and warehousing, the affiliate share of employment decreased from 5.8 percent in 2002 to 4.7 percent in 2003. Employment by affiliates decreased 20 percent, mainly as a result of a corporate restructuring that shifted the nationality of a large transportation services company to the United States.

By state

Among the 50 states and the District of Columbia, the shares of private-industry employment accounted for by majority-owned U.S. affiliates in 2003 were highest in South Carolina (8.4 percent), Hawaii (7.8 percent), New Hampshire (7.7 percent), Connecticut (7.3 percent), and Delaware (7.3 percent) (table 5). South Carolina also had the highest affiliate share of employment in 2002. In each year in 1988-2001, the affiliate share was highest in Hawaii; however, the share in Hawaii has declined since 1997, when it peaked at 9.9 percent.

In 2003, as in earlier years, more than three-fourths of the affiliate employment in South Carolina was accounted for by European-owned affiliates, mainly affiliates in manufacturing and in wholesale and retail trade. In contrast, most of the affiliate employment in Hawaii was by Japanese-owned affiliates, particularly affiliates in the accommodation, real estate, and retail trade industries.

In manufacturing, the affiliate shares of employment in 2003 were highest in Delaware (24.3 percent), South Carolina (23.3 percent), and New Hampshire (22.6 percent) (table 6). In both Delaware and New Hampshire, most of the manufacturing employment of affiliates was by British- and German-owned affiliates. In South Carolina, most of the manufacturing employment of affiliates was by German-, Japanese-, and French-owned affiliates.

In about three-fourths of the states, total employment by affiliates decreased in 2003. The largest reductions were in California (where affiliate employment dropped 52,000, or 8 percent), Texas (where affiliate employment decreased 13,000, or 4 percent), and North Carolina (where affiliate employment decreased 10,000, or 5 percent). The decreases in these three states accounted for more than 40 percent of the nationwide decrease in affiliate employment. In California and in Texas, the decreases mainly reflected shifts in the nationality of ownership in U.S. companies, including ownership changes related to a corporate restructuring in the transportation industry and several selloffs of affiliate subsidiary units in computer and electronics products manufacturing. In North Carolina, the decrease reflected a combination of foreign selloffs and cutbacks in ongoing affiliate operations, particularly operations in manufacturing.

The manufacturing employment of affiliates decreased in all but six states in 2003, largely reflecting a widespread reduction in manufacturing employment by U.S. Businesses. (13) In contrast to the regional pattern for total employment by affiliates, the decreases in affiliate manufacturing employment were more evenly distributed across states: The four states with the largest reductions in affiliate manufacturing employment--California, Texas, New Jersey, and North Carolina--together accounted for about a third of the nationwide decrease in affiliate manufacturing employment.

Trade in Goods

In recent years, majority-owned U.S. affiliates have accounted for about 20 percent of total U.S. exports of goods and for about 30 percent of total U.S. imports of goods (table 7). 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 specific production and distribution ties to their foreign parents. Much of the trade in goods by affiliates--nearly 50 percent of exports and 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. The intrafirm trade of majority-owned U.S. affiliates has generally accounted for 8-10 percent of U.S. exports and for 22-25 percent of U.S. Imports. (14)

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 larger 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 imports 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. (15)

Exports

In 2003, exports of goods by majority-owned U.S. affiliates increased 7 percent, to $151 billion, rebounding from decreases of 3 percent in 2002 and 4 percent in 2001 (table 7). In comparison, exports of goods by all U.S. businesses increased 5 percent, following a 5-percent decrease in 2002 and a 7-percent decrease in 2001. The affiliate share of total U.S. exports of goods thus increased for a third consecutive year, to 21 percent.

Much of the increase in affiliate exports was accounted for by wholesale trade affiliates specializing in equipment and other durable goods, including affiliates with substantial secondary operations in motor vehicle manufacturing. The increase also reflected acquisitions by affiliates of several export-oriented companies.

By country of ownership, exports of Korean-owned affiliates increased 20 percent, and the exports of Canadian-owned affiliates increased 11 percent; for affiliates of both countries, the increases partly reflected an expansion in sales of electronic components to customers in East Asia (table 8). Exports of Swiss-owned affiliates decreased 16 percent, partly because of decreased exports by affiliates in the chemical and electrical equipment industries.

Japanese-owned affiliates continued to account for the largest share of affiliate exports (27 percent), followed by German-owned affiliates (21 percent). (16) As in past years, about two-thirds of the exports of Japanese-owned affiliates were by wholesale trade affiliates, including affiliates of Japan's large general trading companies. In contrast, the exports of German-owned affiliates were predominantly by manufacturing affiliates.

Imports

In 2003, imports of goods by majority-owned U.S. affiliates increased 6 percent, to $357 billion, following an increase of less than half a percent in 2002. Total U.S. imports of goods also increased at a faster pace of 8 percent in 2003, following a 2-percent increase in 2002, so the affiliate share of U.S. imports of goods dipped from 29 percent to 28 percent.

About half of the increase in affiliate imports in 2003 was accounted for by affiliates in the petroleum wholesale trade and natural gas distribution industries, reflecting a pronounced step-up in U.S. imports of mineral fuels. (17) Another major contributor to the increase in affiliate imports was an expansion in sales of imported vehicles by several affiliates with operations in motor vehicle wholesale trade.

By country of ownership, the imports of Canadian-owned affiliates increased 22 percent, mainly as a result of increased imports by affiliates in the natural gas distribution and petroleum wholesale trade industries. The imports of British-owned affiliates increased 20 percent, reflecting expanded imports by manufacturing affiliates specializing in pharmaceuticals and transportation equipment and increases by affiliates in the petroleum wholesale trade and natural gas distribution industries. For Korean-owned affiliates, imports increased 13 percent, largely as a result of increased imports by wholesale trade affiliates specializing in motor vehicles, professional equipment, and electrical goods.

For Japanese-owned affiliates--which have long accounted for the largest share of affiliate imports--imports increased at a relatively modest pace of 5 percent; as a result, their share of affiliate imports dipped from 38 percent to 37 percent, continuing a downward trend. German-owned affiliates continued to account for the second-largest share, which held steady at 17 percent.

Revisions

The estimates of U.S.-affiliate operations in 2003 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 19 (BEA news release 05-15). From the advance estimates to the preliminary estimates, the estimate of employment was revised up 0.4 percent, the estimate of sales was revised up 0.3 percent, and the estimate of expenditures was revised down less than 0.1 percent.

The final estimates of U.S.-affiliate operations in 2002 are also presented. The final estimates of employment, sales, and expenditures for property, plant, and equipment (which were also presented in the April news release) supersede the preliminary estimates that were released in August 2004. (18) From the preliminary estimates to the final estimates, the estimate of employment was revised up 0.1 percent, the estimate of sales was revised down 0.6 percent, and the estimate of expenditures was revised down 0.4 percent.

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 US. affiliate's ownership chain that has a direct investment interest in the affiliate.

Ultimate beneficial owner (UBO). That person, proceeding up a US. 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 (FDIUS): (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 2004" in the June 2005 issue of the SURVEY OF CURRENT BUSINESS. The international transactions and direct investment position data were published in the articles "The International Investment Position of the Unites States at Yearend 2004," "U.S. International Transactions: First Quarter of 2005," and "Direct Investment Positions for 2004: Country and Industry Detail," in the July 2005 SURVEY.

Each of the three data sets focuses on a distinct aspect of FDIUS. 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 FDIUS. Benchmark surveys are BEEs 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 FDIUS. 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 FDIUS. 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," SURVET 70 (February 1990): 29-37; <www.bea.gov/bea/mp_internationat.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 4, footnote 1).

(2.) Establishment-level data from a joint project of BEA and the Bureau of the Census 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 NAtCS industries for 1997, see Foreign Direct Investment in the United States: Establishment Data for 1997 at <www.bea.gov/bea/ai/iidguide.htm>. 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.doc.gov/bea/ai/iidguide.htm>.

(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 mining employment is distributed by industry of sales, all of it would be classified in manufacturing even though the industry of the establishment is 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 2003 annual survey of foreign direct investment in the United States. More detailed estimates will be posted this fall in files 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 1977-2002 are also available from 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>.

Acknowledgements

The 2003 annual survey of foreign direct investment in the United States was conducted under the direction of Joseph F. Cherry III. 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, Karen M. Dennison, Constance T. Deve, Lonnie A. Hunter, Edna A. Ludden, Isabel L. McConnell, Demetria A. McCormick, Gregory L. McCormick, Sidney A. Moskowitz, Chad M. Poist, Joseph N. Post III, Ronald L. Ross, Clarence D. Smith, Marie P. smith, Amy Strong, John R. Starnes, Christopher J. Stein, and Diann L. Vann.

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

(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 2003, majority-owned nonbank U.S. affiliates accounted for 92 percent of the employment of all nonbank U.S. affiliates.

(2.) According to data from BEA's survey of new foreign investments, 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 $55 billion in 2002 and $64 billion in 2003. The outlays for new investment had peaked at $336 billion in 2000 before falling to $147 billion in 2001; see Thomas W. Anderson, "Foreign Direct Investment in the United States: New Investment in 2004," SURVEY OF CURRENT BUSINESS 85 (June 2005): 30-37.

(3.) In a number of cases, however, the units that were sold off were poorly performing units whose contributions to affiliate value added may have been limited.

(4.) 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.

(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.) The Netherlands also ranked as the fourth-largest investing country in 2000-2001; in 2002, France ranked as the fourth-largest investing country.

(7.) 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.

(8.) The industry classification system used for affiliates is based on 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 if the changes are expected to be sustained.

(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 precisely 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.) Most of this decrease was accounted for by affiliates classified in other manufacturing industries that had secondary operations in electrical equipment.

(13.) In 2003, manufacturing employment by all U.S. businesses decreased in all but two states.

(14.) 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/bea/ papers.htm>.

(15.) 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 35 percent in 2003, and their share of affiliate imports declined from 78 percent in 1987 to 58 percent in 2003.

(16.) Japanese-owned affiliates have accounted for the largest shares of affiliate exports and imports since at least 1977.

(17.) The Census Bureau's product-level data for total U.S. imports reveal that a 33-percent increase in imports of petroleum and natural gas accounted for 40 percent of the total increase in U.S. imports of goods in 2003. For both petroleum and natural gas, the increases in nominal import levels partly reflected increases in world fuel prices.

(18.) See William J. Zeile, "Operations of U.S. Affiliates of Foreign Companies: Preliminary Results From the 2002 Benchmark Survey," SURVEY 84 (August 2004): 192-217.

Chart 2. Investing-Country Shares of Value
Added of U.S. Affiliates, 2003

Percent

Other             (22.1%)
Canada             (7.5%)
France             (8.5%)
Germany           (13.0%)
Japan             (13.2%)
Netherlands        (9.1%)
Switzerland        (7.1%)
United Kingdom    (19.6%)

U.S. Bureau of Economic Analysis

Table 1. Value Added and Employment of Majority-Owned Nonbank
U.S. Affiliates of Foreign Companies, 1988-2003

                 Value added                    Employment

                       As a percentage               As a percentage
            Millions   of U.S. private   Thousands   of U.S. private
               of      industry value       of          industry
            dollars         added         workers      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 (r)     460,609               5.8     5,425.4               4.9
2003 (p)     486,344               5.8     5,253.0               4.7

                     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 (r)        10.4                          -3.0
2003 (p)         5.6                          -3.2

(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
Erich H. Strassner and Thomas F. Howells III, "Annual Industry
Accounts: Advanced Estimates for 2004," SURVEY of CURRENT BUSINESS 85
(May 2005): 7-19.

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, 1998-2003

                                     Millions of dollars

                         1998      1999      2000      2001      2002

     All countries     353,860   397,295   447,287   417,122   460,609

Canada                  34,174    36,400    36,928    31,702    35,496
Europe                 228,775   261,473   299,251   270,144   299,965
  Belgium                  (D)     5,177     5,526     5,925     6,997
  Denmark                  931       884     1,282     1,188     2,738
  Finland                2,727       (D)     3,218       (D)     3,877
  France                25,268    31,790    38,763    35,444    40,947
  Germany               57,975    61,569    51,524    46,882    59,434
  Ireland                  (D)       (D)       (D)     3,109     3,291
  Italy                    (D)     4,149     4,765     4,665     5,824
  Netherlands           26,094    31,482    43,745    36,188    39,102
  Sweden                 8,680    10,559    10,678    10,803    11,972
  Switzerland           22,798    25,996    35,225    29,097    30,809
  United Kingdom        70,602    80,391    98,282    89,151    90,124
  Other                  3,207     4,046       (D)       (D)     4,850
Latin America and
  Other Western
  Hemisphere            15,732    19,120    25,036    30,075    36,737
  Bermuda                  (D)     8,566    11,697    14,949    21,745
  Mexico                 1,488     1,447     2,746     2,660     3,299
  United Kingdom
    Islands,
    Caribbean            1,034     1,577     1,658     2,022     1,995
  Venezuela                (D)       (D)       (D)       (D)       (D)
  Other                    (D)       (D)       (D)       (D)       (D)
Africa                     (D)     1,211     1,051       (D)       981
Middle East              2,460     2,131     2,402     8,308     7,439
  Saudi Arabia             346       500       328     6,307     5,105
  Other                  2,114     1,631     2,074     2,000     2,334
Asia and Pacific        68,005    71,836    77,594    69,960    74,947
  Australia              5,642     7,216     6,109     6,224     6,565
  Japan                 56,291    57,622    63,622    57,735    61,099
  Korea, Republic of     1,463     1,957     2,372     1,303     2,094
  Other                  4,609     5,041     5,491     4,698     5,188
United States              (D)     5,124     5,024       (D)     5,044

                        Mil-
                        lions
                         of
                       dollars     Percentage of all-countries total

                         2003     1998    1999    2000    2001    2002

     All countries     486,344   100.0   100.0   100.0   100.0   100.0

Canada                  36,279     9.7     9.2     8.3     7.6     7.7
Europe                 318,778    64.7    65.8    66.9    64.8    65.1
  Belgium                6,998     (D)     1.3     1.2     1.4     1.5
  Denmark                3,014     0.3     0.2     0.3     0.3     0.6
  Finland                3,738     0.8     (D)     0.7     (D)     0.8
  France                41,175     7.1     8.0     8.7     8.5     8.9
  Germany               63,239    16.4    15.5    11.5    11.2    12.9
  Ireland                3,569     (D)     (D)     (D)     0.7     0.7
  Italy                  5,565     (D)     1.0     1.1     1.1     1.3
  Netherlands           44,281     7.4     7.9     9.8     8.7     8.5
  Sweden                12,163     2.5     2.7     2.4     2.6     2.6
  Switzerland           34,417     6.4     6.5     7.9     7.0     6.7
  United Kingdom        95,308    20.0    20.2    22.0    21.4    19.6
  Other                  5,310     0.9     1.0     (D)     (D)     1.1
Latin America and
  Other Western
  Hemisphere            37,165     4.4     4.8     5.6     7.2     8.0
  Bermuda               20,800     (D)     2.2     2.6     3.6     4.7
  Mexico                 3,014     0.4     0.4     0.6     0.6     0.7
  United Kingdom
    Islands,
    Caribbean            2,395     0.3     0.4     0.4     0.5     0.4
  Venezuela                (D)     (D)     (D)     (D)     (D)     (D)
  Other                    (D)     (D)     (D)     (D)     (D)     (D)
Africa                   1,050     (D)     0.3     0.2     (D)     0.2
Middle East              8,341     0.7     0.5     0.5     2.0     1.6
  Saudi Arabia           5,558     0.1     0.1     0.1     1.5     1.1
  Other                  2,783     0.6     0.4     0.5     0.5     0.5
Asia and Pacific        79,111    19.2    18.1    17.3    16.8    16.3
  Australia              8,209     1.6     1.8     1.4     1.5     1.4
  Japan                 64,025    15.9    14.5    14.2    13.8    13.3
  Korea, Republic of     2,069     0.4     0.5     0.5     0.3     0.5
  Other                  4,808     1.3     1.3     1.2     1.1     1.1
United States            5,620     (D)     1.3     1.1     (D)     1.1

                       Percentage of all-countries total

                                        Percent
                                       change in
                                       affiliate
                                         value
                                         added,
                                2003   2002-2003

     All countries             100.0         5.6

Canada                           7.5         2.2
Europe                          65.5         6.3
  Belgium                        1.4         0.0
  Denmark                        0.6        10.1
  Finland                        0.8        -3.6
  France                         8.5         0.6
  Germany                       13.0         6.4
  Ireland                        0.7         8.5
  Italy                          1.1        -4.5
  Netherlands                    9.1        13.2
  Sweden                         2.5         1.6
  Switzerland                    7.1        11.7
  United Kingdom                19.6         5.8
  Other                          1.1         9.5
Latin America and
  Other Western
  Hemisphere                     7.6         1.2
  Bermuda                        4.3        -4.3
  Mexico                         0.6        -8.7
  United Kingdom
    Islands,
    Caribbean                    0.5        20.0
  Venezuela                      (D)         (D)
  Other                          (D)         (D)
Africa                           0.2         7.1
Middle East                      1.7        12.1
  Saudi Arabia                   1.1         8.9
  Other                          0.6        19.3
Asia and Pacific                16.3         5.6
  Australia                      1.7        25.0
  Japan                         13.2         4.8
  Korea, Republic of             0.4        -1.2
  Other                          1.0        -7.3
United States                    1.2        11.4

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

Table 3. Value Added of Majority-Owned Nonbank U.S. Affiliates by
Industry of Affiliate, 1998-2003

                                               Millions of dollars

                                             1998      1999      2000

    All industries                         353,860   397,295   447,287

Manufacturing                              201,116   219,141   215,684
  Food                                       9,947    10,095    10,710
  Beverages and tobacco products               (D)       (D)       (D)
  Petroleum and coal products               21,637       (D)       (D)
  Chemicals                                 39,022    37,698    41,016
  Plastics and rubber products               8,506     9,326     8,727
  Nonmetallic mineral products              11,265    12,805    14,952
  Primary metals                             6,541     6,214     8,299
  Fabricated metal products                  6,333     6,561     7,279
  Machinery                                 13,342    13,803    18,382
  Computers and electronic products         17,826    23,095    26,936
  Electrical equipment, appliances, and
    components                                 (D)    10,011    16,359
  Transportation equipment                  34,982    41,227    30,358
  Other                                        (D)       (D)       (D)
Wholesale trade                             47,877    55,536    81,413
  Petroleum and petroleum products           4,831     5,427       (D)
  Other                                     43,046    50,109       (D)
Retail trade                                17,990    19,938    22,308
Information                                 13,767    18,841    19,427
Finance (except depository institutions)
  and insurance                             19,808    21,029    34,730
Real estate and rental and leasing           7,604     9,302     9,323
Professional, scientific, and technical
  services                                   6,743     7,526     8,553
Other industries                            38,955    45,983    55,848

                                               Millions of dollars

                                             2001      2002      2003

    All industries                         417,122   460,609   486,344

Manufacturing                              200,506   229,245   227,682
  Food                                      10,832    14,303     9,309
  Beverages and tobacco products               (D)     5,678     6,948
  Petroleum and coal products                  (D)       (D)       (D)
  Chemicals                                 39,512    45,034    49,950
  Plastics and rubber products               7,636     9,460     9,004
  Nonmetallic mineral products              14,367    15,144    14,733
  Primary metals                             8,254     5,590     4,497
  Fabricated metal products                  6,382     7,390     7,830
  Machinery                                 19,077    21,055    19,871
  Computers and electronic products         21,004    23,082    22,849
  Electrical equipment, appliances, and
    components                              12,536     4,481     5,510
  Transportation equipment                  29,048    36,848    35,191
  Other                                        (D)       (D)       (D)
Wholesale trade                             81,462    75,657    83,843
  Petroleum and petroleum products             (D)    27,138    30,709
  Other                                        (D)    48,519    53,134
Retail trade                                24,800    26,486    27,878
Information                                  8,247    24,297    26,836
Finance (except depository institutions)
  and insurance                             17,305    15,216    25,577
Real estate and rental and leasing           9,502     9,647    10,031
Professional, scientific, and technical
  services                                  14,923    16,426    17,872
Other industries                            60,377    63,634    66,624

                                             Percentage of all
                                              industries total

                                            1998    1999    2000

    All industries                         100.0   100.0   100.0

Manufacturing                               56.8    55.2    48.2
  Food                                       2.8     2.5     2.4
  Beverages and tobacco products             (D)     (D)     (D)
  Petroleum and coal products                6.1     (D)     (D)
  Chemicals                                 11.0     9.5     9.2
  Plastics and rubber products               2.4     2.3     2.0
  Nonmetallic mineral products               3.2     3.2     3.3
  Primary metals                             1.8     1.6     1.9
  Fabricated metal products                  1.8     1.7     1.6
  Machinery                                  3.8     3.5     4.1
  Computers and electronic products          5.0     5.8     6.0
  Electrical equipment, appliances, and
    components                               (D)     2.5     3.7
  Transportation equipment                   9.9    10.4     6.8
  Other                                      (D)     (D)     (D)
Wholesale trade                             13.5    14.0    18.2
  Petroleum and petroleum products           1.4     1.4     (D)
  Other                                     12.2    12.6     (D)
Retail trade                                 5.1     5.0     5.0
Information                                  3.9     4.7     4.3
Finance (except depository institutions)
  and insurance                              5.6     5.3     7.8
Real estate and rental and leasing           2.1     2.3     2.1
Professional, scientific, and technical
  services                                   1.9     1.9     1.9
Other industries                            11.0    11.6    12.5

                                             Percentage of all
                                              industries total

                                            2001    2002    2003

    All industries                         100.0   100.0   100.0

Manufacturing                               48.1    49.8    46.8
  Food                                       2.6     3.1     1.9
  Beverages and tobacco products             (D)     1.2     1.4
  Petroleum and coal products                (D)     (D)     (D)
  Chemicals                                  9.5     9.8    10.3
  Plastics and rubber products               1.8     2.1     1.9
  Nonmetallic mineral products               3.4     3.3     3.0
  Primary metals                             2.0     1.2     0.9
  Fabricated metal products                  1.5     1.6     1.6
  Machinery                                  4.6     4.6     4.1
  Computers and electronic products          5.0     5.0     4.7
  Electrical equipment, appliances, and
    components                               3.0     1.0     1.1
  Transportation equipment                   7.0     8.0     7.2
  Other                                      (D)     (D)     (D)
Wholesale trade                             19.5    16.4    17.2
  Petroleum and petroleum products           (D)     5.9     6.3
  Other                                      (D)    10.5    10.9
Retail trade                                 5.9     5.8     5.7
Information                                  2.0     5.3     5.5
Finance (except depository institutions)
  and insurance                              4.1     3.3     5.3
Real estate and rental and leasing           2.3     2.1     2.1
Professional, scientific, and technical
  services                                   3.6     3.6     3.7
Other industries                            14.5    13.8    13.7

                                            Percent
                                           change in
                                           affiliate
                                             value
                                             added
                                           2002-2003

    All industries                               5.6

Manufacturing                                   -0.7
  Food                                         -34.9
  Beverages and tobacco products                22.4
  Petroleum and coal products                    (D)
  Chemicals                                     10.9
  Plastics and rubber products                  -4.8
  Nonmetallic mineral products                  -2.7
  Primary metals                               -19.6
  Fabricated metal products                      6.0
  Machinery                                     -5.6
  Computers and electronic products             -1.0
  Electrical equipment, appliances, and
    components                                  23.0
  Transportation equipment                      -4.5
  Other                                          (D)
Wholesale trade                                 10.8
  Petroleum and petroleum products              13.2
  Other                                          9.5
Retail trade                                     5.3
Information                                     10.4
Finance (except depository institutions)
  and insurance                                 68.1
Real estate and rental and leasing               4.0
Professional, scientific, and technical
  services                                       8.8
Other industries                                 4.7

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

Table 4. Employment by Majority-Owned Nonbank U.S. Affiliates by
Industry of Sales, 1998-2003

                                               Thousands of employees

                                              1998      1999      2000

All industries (2)                          4,669.5   5,064.3   5,656.5

Agriculture, forestry, fishing, and
  hunting                                         J      13.7      12.7
Mining, excluding oil and gas extraction       56.2      52.5      54.4
Utilities                                       4.6       6.9      24.8
Construction                                   57.9      67.5      69.6
Manufacturing (3)                           2,053.2   2,059.6   2,139.1
  Food and beverage and tobacco products          M         M         M
  Textile mills and textile product mills         K         K      25.2
  Apparel and leather and allied products         J         J         J
  Wood products                                10.1      11.4      19.7
  Paper                                        47.2         K         K
  Printing and related support activities      45.2      48.3         L
  Petroleum and coal products (4)                 K      29.2      25.2
  Chemicals                                   278.1     269.7     261.2
  Plastics and rubber products                137.6     126.1     132.9
  Nonmetallic mineral products                112.2     115.6     125.6
  Primary metals                               80.4      83.1      85.2
  Fabricated metal products                   114.5      99.8     108.7
  Machinery                                   186.5     199.3     204.4
  Computers and electronic products           251.9     262.0     286.9
  Electrical equipment, appliances, and
    components                                111.5     126.0     118.2
  Motor vehicles, bodies and trailers,
    and parts                                 308.6     315.1     322.8
  Other transportation equipment               34.5      37.4      46.1
  Furniture and related products               15.4      15.3      15.1
  Miscellaneous manufacturing                  75.0      72.8      80.7
Wholesale trade                               355.9     363.3     407.0
Retail trade                                  535.6     589.4     641.8
Transportation and warehousing                139.3     169.1     213.7
Information                                   164.8     205.8     212.6
Finance (except depository institutions)
  and insurance                               199.3     225.2     264.8
  Finance, except depository institutions      82.2      91.6         M
  Insurance carriers and related
    activities                                117.1     133.6         M
Real estate and rental and leasing             44.5      49.3      43.2
Professional, scientific, and technical
  services                                    131.7     147.6     199.0
Management of nonbank companies and
  enterprises                                   2.2       1.8       2.0
Administration, support, and waste
  management                                  292.8     403.8     590.0
Educational services                              I         I         I
Health care and social assistance             103.9      71.9         L
Arts, entertainment, and recreation            32.9      37.4      36.2
Accommodation and food services                   M     255.1         M
Other services, except government              55.8         K         K
Auxiliaries (5)                               166.8     271.0     289.3
Unspecifieds (6)                               39.8      21.8      40.9

                                               Thousands of employees

                                              2001      2002      2003

All industries (2)                          5,594.3   5,425.4   5,253.0

Agriculture, forestry, fishing, and
  hunting                                      12.1      10.3       8.7
Mining, excluding oil and gas extraction       60.4      79.8      74.7
Utilities                                      19.7      31.6      35.2
Construction                                   79.8      81.5      92.3
Manufacturing (3)                           1,956.7   1,844.1   1,767.1
  Food and beverage and tobacco products          M     135.9     148.0
  Textile mills and textile product mills         J      18.3      15.3
  Apparel and leather and allied products         J       7.0       5.4
  Wood products                                19.9      17.9      18.1
  Paper                                          K       41.7      41.9
  Printing and related support activities      53.8      50.6      48.2
  Petroleum and coal products (4)              22.8      21.7      22.6
  Chemicals                                   247.7     264.9     257.6
  Plastics and rubber products                126.1     121.6     114.5
  Nonmetallic mineral products                122.4     117.2     117.8
  Primary metals                               78.4      61.8      57.2
  Fabricated metal products                   112.5     103.4      89.2
  Machinery                                   184.1     172.0     167.7
  Computers and electronic products           240.6     198.1     167.5
  Electrical equipment, appliances, and
    components                                103.7     101.0      89.3
  Motor vehicles, bodies and trailers,
    and parts                                 275.9     268.5     276.8
  Other transportation equipment               48.1      47.2      46.4
  Furniture and related products               15.1      11.5      10.8
  Miscellaneous manufacturing                  80.3      83.9      72.8
Wholesale trade                               440.3     438.6     421.2
Retail trade                                  643.1     605.4     579.6
Transportation and warehousing                228.7     247.3     196.8
Information                                   196.1     206.4     216.5
Finance (except depository institutions)
  and insurance                               274.0     230.7     230.2
  Finance, except depository institutions     142.6     100.9     111.5
  Insurance carriers and related
    activities                                131.4     129.8     118.7
Real estate and rental and leasing             42.9      38.8      37.2
Professional, scientific, and technical
  services                                    225.4     215.7     212.8
Management of nonbank companies and
  enterprises                                   2.2       3.1       2.7
Administration, support, and waste
  management                                  546.7     547.9     541.4
Educational services                            7.6       5.0       5.9
Health care and social assistance                 L     103.5      76.6
Arts, entertainment, and recreation            36.0      33.6      33.5
Accommodation and food services               324.8     326.1     331.7
Other services, except government                 K      27.8      24.6
Auxiliaries (5)                               326.6     313.6     323.5
Unspecifieds (6)                               28.3      34.6      40.7

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

                                            1998   1999   2000   2001

All industries (2)                           4.3    4.6    5.0    4.9

Agriculture, forestry, fishing, and
  hunting                                    (D)    0.9    0.9    0.8
Mining, excluding oil and gas extraction    13.3   13.7   13.8   14.6
Utilities                                    0.8    1.1    4.1    3.3
Construction                                 0.9    1.0    1.0    1.1
Manufacturing (3)                           11.6   11.8   12.2   11.7
  Food and beverage and tobacco products     (D)    (D)    (D)    (D)
  Textile mills and textile product mills    (D)    (D)    4.2    (D)
  Apparel and leather and allied products    (D)    (D)    (D)    (D)
  Wood products                              1.6    1.8    3.1    3.4
  Paper                                      7.6    (D)    (D)    (D)
  Printing and related support activities    5.4    5.8    (D)    6.9
  Petroleum and coal products (4)            (D)   11.3   10.1    9.3
  Chemicals                                 28.2   27.6   26.5   25.8
  Plastics and rubber products              14.6   13.4   13.9   14.1
  Nonmetallic mineral products              21.1   21.4   22.3   22.4
  Primary metals                            12.8   13.5   13.7   13.7
  Fabricated metal products                  6.6    5.8    6.1    6.7
  Machinery                                 12.3   13.7   13.9   13.4
  Computers and electronic products         13.9   14.9   15.8   13.7
  Electrical equipment, appliances, and
    components                              19.0   21.6   19.9   18.7
  Motor vehicles, bodies and trailers,
    and parts                               24.5   24.2   24.5   22.8
  Other transportation equipment             4.3    4.9    6.2    6.7
  Furniture and related products             2.4    2.3    2.2    2.3
  Miscellaneous manufacturing               10.1    9.8   10.5   10.9
Wholesale trade                              6.1    6.1    6.9    7.6
Retail trade                                 3.6    3.9    4.1    4.1
Transportation and warehousing               3.3    3.9    4.8    5.2
Information                                  5.2    6.1    5.8    5.4
Finance (except depository institutions)
  and insurance                              5.1    5.5    6.4    6.6
  Finance, except depository institutions    4.9    5.1    (D)    7.7
  Insurance carriers and related
    activities                               5.2    5.9    (D)    5.8
Real estate and rental and leasing           2.2    2.4    2.1    2.0
Professional, scientific, and technical
  services                                   2.0    2.1    2.6    3.1
Management of nonbank companies and
  enterprises                                0.1    0.1    0.1    0.1
Administration, support, and waste
  management                                 3.6    4.7    7.3    7.0
Educational services                         (D)    (D)    (D)    0.3
Health care and social assistance            0.8    0.6    (D)    (D)
Arts, entertainment, and recreation          2.0    2.2    2.0    1.9
Accommodation and food services              (D)    2.6    (D)    3.2
Other services, except government            0.9    (D)    (D)    (D)
Auxiliaries (5)                             n.a.   n.a.   n.a.   n.a.
Unspecifieds (6)                            n.a.   n.a.   n.a.   n.a.

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

                                            2002   2003

All industries (2)                           4.9    4.7

Agriculture, forestry, fishing, and
  hunting                                    0.7    0.6
Mining, excluding oil and gas extraction    20.6   19.5
Utilities                                    5.3    6.1
Construction                                 1.2    1.3
Manufacturing (3)                           11.9   12.0
  Food and beverage and tobacco products     7.7    8.6
  Textile mills and textile product mills    3.8    3.4
  Apparel and leather and allied products    1.7    1.5
  Wood products                              3.1    3.3
  Paper                                      7.7    8.1
  Printing and related support activities    7.0    7.0
  Petroleum and coal products (4)            9.0    9.6
  Chemicals                                 28.5   28.3
  Plastics and rubber products              14.4   14.0
  Nonmetallic mineral products              22.5   23.6
  Primary metals                            12.2   12.0
  Fabricated metal products                  6.7    6.0
  Machinery                                 14.0   14.5
  Computers and electronic products         13.2   12.4
  Electrical equipment, appliances, and
    components                              20.3   19.4
  Motor vehicles, bodies and trailers,
    and parts                               23.3   24.8
  Other transportation equipment             7.0    7.2
  Furniture and related products             1.9    1.9
  Miscellaneous manufacturing               11.8   10.6
Wholesale trade                              7.7    7.4
Retail trade                                 3.9    3.8
Transportation and warehousing               5.8    4.7
Information                                  6.1    6.8
Finance (except depository institutions)
  and insurance                              5.6    5.5
  Finance, except depository institutions    5.4    5.8
  Insurance carriers and related
    activities                               5.7    5.1
Real estate and rental and leasing           1.8    1.7
Professional, scientific, and technical
  services                                   3.0    3.0
Management of nonbank companies and
  enterprises                                0.2    0.2
Administration, support, and waste
  management                                 7.2    7.1
Educational services                         0.2    0.2
Health care and social assistance            0.7    0.5
Arts, entertainment, and recreation          1.8    1.7
Accommodation and food services              3.2    3.2
Other services, except government            0.4    0.4
Auxiliaries (5)                             n.a.   n.a.
Unspecifieds (6)                            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 6.4D of the "National Income and
Product Accounts (NIPAs) 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 5, the
latter are from BEA's Regional Economic Information System. The
estimates in table 5, unlike those in this table, include employment in
depository institutions. In addition, the estimates in table 5, unlike
those in 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 6. In this table,
U.S.-affiliate 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 6, affiliate manufacturing
employment consists only of employees on the payrolls of manufacturing
plants. Data on the latter basis are not available for 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 6.

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

(5.) Employees on the payrolls of administrative offices and other
auxiliary units. Includes employees of units that perform scientific
research, data processing, warehousing and storage, and advertising
services for other units of the same enterprise.

(6.) 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
1998-2001 and greater than $125 million in 2002-2003) 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.

NOTE. 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. Far 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 5. Employment by Majority-Owned Nonbank U.S. Affiliates by State,
1998-2003

                                Thousand of employees

                          1998      1999      2000      2001

      Total (2)          4,669.5   5,064.3   5,656.5   5,594.3
New England                327.9     349.2     420.9     435.3
  Connecticut               89.9      93.3     105.5     117.4
  Maine                     22.7      22.0      31.7      32.8
  Massachusetts            156.9     175.9     207.7     209.9
  New Hampshire             29.8      29.9      43.8      41.0
  Rhode Island              20.1      19.5      22.2      23.5
  Vermont                    8.5       8.6       9.9      10.7
Mideast                    841.9     917.5   1,051.2   1,042.2
  Delaware                  19.9      24.0      27.7      24.4
  District of Columbia      10.2      13.9      14.7      17.7
  Maryland                  67.7      88.7     104.6     106.4
  New Jersey               200.9     211.3     234.6     239.4
  New York                 328.0     348.3     415.8     415.5
  Pennsylvania             215.2     231.3     253.9     238.7
Great Lakes                878.6     925.5     979.0     941.0
  Illinois                 223.9     241.2     277.2     274.2
  Indiana                  140.1     144.3     143.8     142.0
  Michigan                 210.2     221.2     228.4     204.7
  Ohio                     223.5     228.7     228.3     220.8
  Wisconsin                 80.9      90.1     101.3      99.3
Plains                     237.8     257.9     285.3     300.1
  Iowa                      31.8      35.5      36.5      38.8
  Kansas                    31.2      33.4      37.8      36.0
  Minnesota                 71.1      77.3      90.7      87.8
  Missouri                  74.0      81.7      89.4     102.7
  Nebraska                  14.9      19.3      19.3      20.1
  North Dakota               5.1       4.9       5.2       8.2
  South Dakota               9.7       5.8       6.4       6.6
Southeast                1,195.7   1,307.3   1,397.7   1,393.8
  Alabama                   57.9      64.1      65.0      75.5
  Arkansas                  31.1      31.6      34.7      35.8
  Florida                  190.1     210.7     244.2     257.7
  Georgia                  173.0     189.3     199.5     195.0
  Kentucky                  75.0      82.2      94.1      90.9
  Louisiana.                45.8      49.3      51.3      51.1
  Mississippi               18.2      19.8      20.0      21.5
  North Carolina           208.5     229.4     239.1     223.0
  South Carolina           117.4     128.0     129.1     129.1
  Tennessee                128.3     132.8     137.7     134.2
  Virginia                 126.5     146.5     158.0     154.5
  West Virginia             23.9      23.7      25.0      25.7
Southwest                  397.1     432.6     492.5     484.7
  Arizona                   46.4      53.6      60.8      57.0
  New Mexico                11.2      10.2      12.0      13.5
  Oklahoma                  30.9      33.4      34.7      40.0
  Texas                    308.6     335.3     384.9     374.2
Rocky Mountain              97.2     124.8     143.4     136.2
  Colorado                  56.1      73.7      88.2      81.3
  Idaho                      7.8      11.0      10.8      11.3
  Montana                    4.8       9.7       5.0       5.7
  Utah                      22.6      25.1      32.2      30.4
  Wyoming                    5.9       5.2       7.2       7.5
Far West                   671.7     726.4     862.5     832.4
  Alaska                     9.3       8.9      10.3      10.5
  California               487.0     529.6     638.9     615.2
  Hawaii                    38.9      39.4      40.6      38.9
  Nevada                    21.3      26.2      30.7      28.2
  Oregon                    43.4      46.9      56.0      51.5
  Washington                71.8      75.4      86.0      88.1
Puerto Rico                 14.4      15.2      16.0      16.4
Other U.S. areas (3)         6.8       7.6       7.5      11.9
Foreign (4)                  (*)       0.3       0.5       0.4

                                             Percentage of
                                             total private
                                            industry employ-
                             Thousand of     ment in the
                              employees       state (1)

                          2002      2003     1998   1999

      Total (2)          5,425.4   5,253.0    4.2    4.5
New England                419.2     402.2    5.4    5.7
  Connecticut              111.0     104.9    6.1    6.2
  Maine                     31.7      30.1    4.7    4.4
  Massachusetts            196.9     189.0    5.4    6.0
  New Hampshire             41.1      41.9    5.7    5.5
  Rhode Island              27.5      25.9    4.9    4.7
  Vermont                   11.1      10.4    3.4    3.4
Mideast                    996.1     980.4    4.7    5.0
  Delaware                  22.4      26.5    5.6    6.5
  District of Columbia      17.4      16.5    2.5    3.2
  Maryland                 105.4     104.1    3.5    4.4
  New Jersey               228.3     223.2    6.1    6.3
  New York                 386.8     382.6    4.7    4.8
  Pennsylvania             235.8     227.7    4.4    4.6
Great Lakes                920.3     900.2    4.6    4.8
  Illinois                 262.9     254.9    4.3    4.6
  Indiana                  133.2     134.2    5.4    5.5
  Michigan                 202.9     205.0    5.3    5.5
  Ohio                     214.2     208.6    4.6    4.6
  Wisconsin                107.1      97.6    3.4    3.7
Plains                     284.8     279.2    2.9    3.1
  Iowa                      36.6      38.1    2.6    2.8
  Kansas                    34.9      35.6    2.8    3.0
  Minnesota                 88.1      84.6    3.1    3.3
  Missouri                  91.5      87.2    3.2    3.4
  Nebraska                  18.7      18.9    2.0    2.5
  North Dakota               7.4       7.9    2.0    1.8
  South Dakota               7.6       7.0    3.2    1.9
Southeast                1,361.3   1,316.2    4.6    4.9
  Alabama                   75.1      72.8    3.6    4.0
  Arkansas                  35.7      33.7    3.2    3.2
  Florida                  252.1     248.9    3.2    3.4
  Georgia                  191.2     182.8    5.3    5.6
  Kentucky                  88.4      87.0    5.0    5.4
  Louisiana.                50.5      48.0    2.9    3.1
  Mississippi               25.8      22.8    1.9    2.1
  North Carolina           214.8     204.6    6.4    6.9
  South Carolina           133.0     127.5    7.7    8.2
  Tennessee                130.1     127.4    5.5    5.6
  Virginia                 141.9     138.6    4.5    5.1
  West Virginia             22.7      22.2    4.2    4.1
Southwest                  457.0     444.2    3.5    3.7
  Arizona                   57.5      59.8    2.5    2.8
  New Mexico                12.8      12.5    2.0    1.8
  Oklahoma                  33.9      32.5    2.6    2.8
  Texas                    352.8     339.3    4.0    4.3
Rocky Mountain             136.8     132.3    2.7    3.3
  Colorado                  77.7      73.5    3.1    3.9
  Idaho                     12.5      11.2    1.8    2.4
  Montana                    5.9       6.6    1.6    3.1
  Utah                      32.3      32.2    2.6    2.8
  Wyoming                    8.5       8.8    3.4    2.9
Far West                   823.1     767.2    3.9    4.1
  Alaska                    12.6      11.7    4.5    4.2
  California               612.6     561.0    4.0    4.3
  Hawaii                    36.7      36.1    8.9    8.9
  Nevada                    25.8      27.2    2.5    2.9
  Oregon                    50.9      48.4    3.2    3.4
  Washington                84.5      82.8    3.2    3.3
Puerto Rico                 16.6      16.4   n.a.   n.a.
Other U.S. areas (3)         9.9      14.4   n.a.   n.a.
Foreign (4)                  0.3       0.4   n.a.   n.a.

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

                            2000   2001   2002   2003

      Total (2)              4.9    4.9    4.8    4.7
New England                  6.7    7.0    6.8    6.6
  Connecticut                6.9    7.9    7.6    7.3
  Maine                      6.2    6.4    6.2    5.9
  Massachusetts              6.9    7.0    6.7    6.5
  New Hampshire              7.9    7.4    7.5    7.7
  Rhode Island               5.2    5.6    6.5    6.1
  Vermont                    3.8    4.1    4.3    4.1
Mideast                      5.6    5.6    5.4    5.3
  Delaware                   7.4    6.6    6.1    7.3
  District of Columbia       3.2    3.9    3.8    3.6
  Maryland                   5.1    5.1    5.1    5.0
  New Jersey                 6.8    6.9    6.7    6.5
  New York                   5.6    5.7    5.4    5.4
  Pennsylvania               5.0    4.7    4.7    4.5
Great Lakes                  5.0    4.9    4.9    4.8
  Illinois                   5.2    5.2    5.1    5.0
  Indiana                    5.4    5.5    5.2    5.3
  Michigan                   5.6    5.2    5.2    5.4
  Ohio                       4.6    4.5    4.5    4.4
  Wisconsin                  4.1    4.1    4.4    4.0
Plains                       3.3    3.8    3.7    3.6
  Iowa                       2.9    3.1    3.0    3.1
  Kansas                     3.3    3.2    3.1    3.2
  Minnesota                  3.8    3.7    3.8    3.6
  Missouri                   3.7    4.4    3.9    3.8
  Nebraska                   2.5    2.6    2.4    2.5
  North Dakota               1.9    3.1    2.8    3.0
  South Dakota               2.0    2.1    2.4    2.2
Southeast                    5.1    5.1    5.1    4.9
  Alabama                    4.0    4.7    4.8    4.6
  Arkansas                   3.5    3.6    3.6    3.4
  Florida                    3.8    4.0    3.9    3.9
  Georgia                    5.8    5.7    5.7    5.5
  Kentucky                   6.0    6.0    5.9    5.8
  Louisiana.                 3.2    3.2    3.2    3.0
  Mississippi                2.1    2.3    2.8    2.5
  North Carolina             7.0    6.7    6.6    6.3
  South Carolina             8.2    8.4    8.7    8.4
  Tennessee                  5.7    5.7    5.6    5.5
  Virginia                   5.4    5.3    4.9    4.8
  West Virginia              4.3    4.4    3.9    3.9
Southwest                    4.1    4.1    3.9    3.8
  Arizona                    3.1    2.9    3.0    3.0
  New Mexico                 2.1    2.3    2.2    2.1
  Oklahoma                   2.8    3.3    2.8    2.8
  Texas                      4.7    4.6    4.4    4.3
Rocky Mountain               3.7    3.5    3.6    3.5
  Colorado                   4.5    4.2    4.1    4.0
  Idaho                      2.3    2.3    2.6    2.3
  Montana                    1.6    1.8    1.8    2.0
  Utah                       3.5    3.3    3.5    3.5
  Wyoming                    3.9    4.0    4.5    4.6
Far West                     4.8    4.6    4.6    4.3
  Alaska                     4.8    4.8    5.7    5.2
  California                 5.0    4.8    4.9    4.5
  Hawaii                     8.9    8.5    8.1    7.8
  Nevada                     3.3    3.0    2.7    2.8
  Oregon                     4.0    3.8    3.8    3.6
  Washington                 3.7    3.8    3.8    3.7
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.

* Fewer than 50 employees.

n.a. Not available.

(1.) The data on U.S. 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 4, which are from tables 6.4D
of the "National Income and Product Accounts (NIPAs) Tables:" They
differ from the NIPA estimates of employment because they include
despository 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 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 areas.

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

Table 6. Manufacturing Employment by Majority-Owned Nonbank
U.S. Affiliates by State, 1998-2003

                                Thousand of employees

                          1998      1999      2000      2001

     Total (2)           2,030.3   2,036.5   2,118.8   1,934.9
New England                109.2     115.3     127.7     125.6
  Connecticut               28.9      28.7      32.2      35.7
  Maine                     11.3      11.0      11.4      11.4
  Massachusetts             42.4      50.0      53.3      51.2
  New Hampshire             16.4      16.4      20.8      18.2
  Rhode Island               7.7       6.3       6.1       5.2
  Vermont                    2.5       2.8       3.9       3.9
Mideast                        M     267.8         M     261.3
  Delaware                     I       7.2         I       9.4
  District of Columbia       0.5       0.4       0.4       0.4
  Maryland                  20.9      18.5      21.8      20.1
  New Jersey                74.8      65.4      64.0      64.9
  New York                  74.9      66.5      77.9      74.7
  Pennsylvania             109.9     109.9     111.7      91.9
Great Lakes                496.3     498.0     516.4     455.8
  Illinois                 104.2     101.5     109.7      97.4
  Indiana                  104.2     102.0      99.9      96.0
  Michigan                 111.3     113.9     133.9     102.2
  Ohio                     127.4     129.0     118.7     111.4
  Wisconsin                 49.2      51.6      54.2      48.7
Plains                     127.4     132.3     132.8     135.8
  Iowa                      20.8      21.9      22.4      22.1
  Kansas                    16.9      18.1      18.3      14.0
  Minnesota                 30.8      31.0      32.2      31.2
  Missouri                  44.0      45.1      46.2      51.8
  Nebraska                   8.9      10.1       8.2       8.2
  North Dakota               2.0       2.3       2.0       4.5
  South Dakota               4.0       3.7       3.5       4.0
Southeast                  580.8     593.7     596.8     543.9
  Alabama                   41.4      42.7      41.1      36.7
  Arkansas                  22.7      22.1      23.7      22.8
  Florida                   43.9      41.4      49.2      46.0
  Georgia                   81.1      76.4      79.0      70.4
  Kentucky                  53.2      57.3      60.7      55.8
  Louisiana                 18.9      22.0      22.0      19.5
  Mississippi               10.7      11.8       9.6       9.9
  North Carolina           107.3     116.4     113.6      96.6
  South Carolina            66.4      69.4      70.0      65.9
  Tennessee                 78.3      75.6      72.7      70.0
  Virginia                  45.8      46.8      42.4      38.2
  West Virginia             11.1      11.7      12.9      12.1

Southwest                  171.9     169.8     184.7     160.8
  Arizona                   14.1      15.0      16.2      15.1
  New Mexico                 2.8       2.7       3.8       2.7
  Oklahoma                  14.9      15.3      15.5      15.5
  Texas                    140.1     136.8     149.2     127.5

Rocky Mountain                 K      33.7         K      35.9
  Colorado                  14.8      16.3      24.4      19.0
  Idaho                      4.1       4.8         H       3.8
  Montana                      F       2.1       0.9       2.1
  Utah                       9.3       9.4      10.1      10.0
  Wyoming                    1.4       1.1       1.0       0.9

Far West                   218.3     218.1     226.2     206.7
  Alaska                     1.5       1.3       1.5       1.7
  California               164.5     168.4     175.0     161.3
  Hawaii                     1.2       1.2       1.2       0.9
  Nevada                     4.9       4.6       4.7       4.8
  Oregon                    18.3      18.0      19.3      15.6
  Washington                27.9      24.5      24.5      22.3
Puerto Rico                  7.3       7.5       8.4       8.1
Other U.S. areas (3)         0.2       0.3       0.3       1.0
Foreign (4)                  0.0       0.0       0.0       (*)

                                             Percentage
                                              of total
                                            manufacturing
                           Thousand of      employment in
                             employees       the state (1)

                          2002      2003     1998    1999

      Total (2)          1,811.9   1,685.4    11.5    11.7
New England                105.7     101.8    11.2    12.2
  Connecticut               29.4      28.6    11.7    11.9
  Maine                      9.6       8.3    13.8    13.6
  Massachusetts             42.5      41.3    10.2    12.4
  New Hampshire             17.6      18.3    15.7    16.0
  Rhode Island               4.1       3.4    10.1     8.6
  Vermont                    2.5       1.9     5.6     6.2
Mideast                    248.6     226.6     (D)    11.9
  Delaware                   8.1       8.7     (D)    16.9
  District of Columbia       0.7       0.5    13.0    10.5
  Maryland                  16.2      15.8    12.3    10.9
  New Jersey                67.2      57.4    17.6    15.8
  New York                  67.2      60.9     9.7     8.8
  Pennsylvania              89.3      83.3    12.5    12.6
Great Lakes                433.7     402.9    12.2    12.3
  Illinois                  88.8      81.6    11.7    11.6
  Indiana                   87.1      81.9    15.8    15.3
  Michigan                  93.6      90.4    12.6    12.8
  Ohio                     109.2     100.6    12.4    12.6
  Wisconsin                 55.0      48.3     8.2     8.7
Plains                     120.4     118.0     9.0     9.4
  Iowa                      20.2      20.6     8.3     8.7
  Kansas                    15.1      17.1     8.3     8.9
  Minnesota                 26.2      24.0     7.8     7.9
  Missouri                  42.4      39.8    11.6    12.1
  Nebraska                   7.8       9.3     7.8     9.0
  North Dakota               4.0       3.7     8.7    10.0
  South Dakota               4.7       3.6     9.2     8.4
Southeast                  533.7     493.3    13.1    13.6
  Alabama                   37.0      35.6    11.3    12.0
  Arkansas                  20.3      19.4     9.4     9.2
  Florida                   41.5      35.6     9.6     9.1
  Georgia                   68.8      64.3    14.9    14.0
  Kentucky                  53.9      49.9    17.3    18.5
  Louisiana                 16.9      15.4    10.3    12.2
  Mississippi               12.7       9.6     4.6     5.1
  North Carolina            93.4      83.9    13.4    15.0
  South Carolina            70.8      64.9    19.0    20.8
  Tennessee                 67.6      67.4    15.8    15.3
  Virginia                  37.9      35.7    12.3    12.8
  West Virginia             12.9      11.7    14.4    15.3

Southwest                  136.9     125.7    11.4    11.4
  Arizona                   13.0      13.7     6.8     7.3
  New Mexico                 1.8       1.8     6.5     6.7
  Oklahoma                  14.5      12.9     8.3     8.6
  Texas                    107.6      97.3    13.0    12.9

Rocky Mountain              36.7      32.0     (D)     8.1
  Colorado                  19.9      17.4     7.8     8.7
  Idaho                      3.7       3.2     5.9     6.9
  Montana                    2.0       1.2     (D)     9.4
  Utah                       9.7       9.4     7.3     7.4
  Wyoming                    1.4       0.9    14.1    10.6

Far West                   187.2     173.8     8.7     8.8
  Alaska                     2.1       2.0    11.7    10.7
  California               146.2     134.8     8.8     9.2
  Hawaii                     1.0       1.0     8.0     7.8
  Nevada                     4.7       4.0    12.4    11.4
  Oregon                    12.7      11.5     8.1     8.1
  Washington                20.5      20.5     7.9     7.2
Puerto Rico                  8.5       8.3    n.a.    n.a.
Other U.S. areas (3)         0.5       2.8    n.a.    n.a.
Foreign (4)                  (*)       0.3    n.a.    n.a.

                        Percentage of total manufacturing
                           employment in the state (1)

                         2000    2001    2002    2003

      Total (2)           12.2    11.7    11.7    11.5
New England               13.6    13.9    12.8    13.2
  Connecticut             13.7    15.7    13.8    14.3
  Maine                   14.3    15.1    13.9    12.9
  Massachusetts           13.1    13.1    12.1    12.6
  New Hampshire           20.4    18.6    20.6    22.6
  Rhode Island             8.6     7.6     6.5     5.8
  Vermont                  8.4     8.5     6.2     5.0
Mideast                    (D)    12.1     (D)    12.0
  Delaware                 (D)    23.7    21.9    24.3
  District of Columbia    11.5    11.0     (D)    18.4
  Maryland                12.6    11.8    10.2    10.6
  New Jersey              15.2    16.1    18.2    16.3
  New York                10.5    10.6    10.2     9.8
  Pennsylvania            13.0    11.1    11.7    11.5
Great Lakes               12.8    12.0    12.3    11.9
  Illinois                12.7    11.9    11.7    11.3
  Indiana                 15.1    15.5    14.7    14.2
  Michigan                15.0    12.3    12.3    12.5
  Ohio                    11.7    11.6    12.3    11.8
  Wisconsin                9.1     8.6    10.4     9.5
Plains                     9.5    10.1     9.5     9.7
  Iowa                     8.9     9.1     8.8     9.3
  Kansas                   9.2     7.2     8.3     9.9
  Minnesota                8.2     8.2     7.3     6.9
  Missouri                12.7    15.1    13.0    12.7
  Nebraska                 7.2     7.4     7.3     9.0
  North Dakota             8.2    18.4    16.5    15.5
  South Dakota             8.0     9.6    12.1     9.4
Southeast                 13.9    13.4    14.0    13.6
  Alabama                 11.8    11.2    11.9    12.0
  Arkansas                 9.9    10.0     9.4     9.3
  Florida                 10.9    10.5    10.1     9.1
  Georgia                 14.6    13.9    14.4    14.1
  Kentucky                19.6    18.9    19.4    18.6
  Louisiana               12.4    11.3    10.4     9.8
  Mississippi              4.3     4.9     6.7     5.3
  North Carolina          15.0    13.6    14.4    13.8
  South Carolina          21.0    20.9    24.2    23.3
  Tennessee               14.9    15.3    15.7    16.3
  Virginia                11.8    11.1    11.7    11.6
  West Virginia           17.1    16.6    18.6    18.0

Southwest                 12.4    11.1    10.3     9.9
  Arizona                  7.8     7.5     7.0     7.7
  New Mexico               9.2     6.6     4.7     5.0
  Oklahoma                 8.8     9.1     9.5     8.9
  Texas                   14.0    12.3    11.3    10.7

Rocky Mountain             (D)     8.8     (D)     8.9
  Colorado                12.9    10.4    11.9    11.1
  Idaho                    (D)     5.5     5.7     5.1
  Montana                  4.1     9.9     9.7     6.0
  Utah                     8.0     8.2     8.5     8.3
  Wyoming                  9.8     9.2     (D)    10.0

Far West                   9.1     8.6     8.5     8.3
  Alaska                  11.6    13.6    18.6    16.9
  California               9.4     9.0     8.9     8.7
  Hawaii                   7.7     5.5     6.4     6.6
  Nevada                  11.2    10.9    10.9     9.0
  Oregon                   8.6     7.2     6.2     5.9
  Washington               7.4     7.0     7.1     7.6
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.

* 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 4 (see footnote 1 to table 4).

(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 4 (see footnote 3 to
table 4). For consistency with the coverage of the employment data far
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 7. U.S. Trade in Goods by Majority-Owned Nonbank U.S.
Affiliates, 1987-2003

                     Millions of dollars

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

                     Shipped             Shipped
                     to the              from the
                     foreign             foreign
                     parent               parent
           Total      group     Total     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 (r)   140,510    64,572   335,021    267,291
2003 (p)   150,829    71,742   356,659    285,909

           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.         total U.S.
           exports of goods    imports of goods

                     Shipped           Shipped
                     to the            from the
                     foreign           foreign
                     parent            parent
            Total     group    Total    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      24.5
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 (r)      20.3       9.3    28.8      23.0
2003 (p)      20.8       9.9    28.4      22.7

(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 8. U.S. Trade in Goods of Majority-Owned Nonbank U.S. Affiliates
by Selected Country of Ultimate Beneficial Owner, 1998-2003

                                          Million of dollars

                                       1998      1999      2000

U.S. exports shipped by affiliates:
  All countries                       136,949   140,808   150,911
Canada                                  7,729     7,331     9,058
France                                    (D)       (D)    10,474
Germany                                27,739    30,655    31,430
Netherlands                             3,987     4,914       (D)
Switzerland                             5,052     5,475     5,931
United Kingdom                         15,226    15,251    16,262
Japan                                  42,857    38,134    40,667
Korea, Republic of                        (D)       (D)       (D)
Other                                  20,595    21,981    25,013
U.S. imports shipped to affiliates:
  All countries                       277,909   312,895   354,613
Canada                                 15,077    16,169    20,995
France                                 12,416    15,912       (D)
Germany                                54,616    53,306    57,804
Netherlands                            10,376    15,903       (D)
Switzerland                             6,610     7,126     8,416
United Kingdom                         16,191    19,091    23,691
Japan                                 117,954   134,514   147,156
Korea, Republic of                        (D)       (D)       (D)
Other                                     (D)       (D)    45,673

                                         Million of dollars

                                       2001      2002      2003

U.S. exports shipped by affiliates:
  All countries                       145,525   140,510   150,829
Canada                                  8,191     6,401     7,110
France                                  9,817    10,043    10,621
Germany                                29,298    30,351    32,306
Netherlands                               (D)     5,022     4,960
Switzerland                             5,947     5,998     5,066
United Kingdom                         15,586    14,241    13,923
Japan                                  40,766    38,531    41,364
Korea, Republic of                        (D)     4,368     5,239
Other                                  25,111    25,556    30,241
U.S. imports shipped to affiliates:
  All countries                       333,855   335,021   356,659
Canada                                 19,070    18,634    22,741
France                                    (D)    14,608    15,284
Germany                                56,477    57,386    61,191
Netherlands                            16,227    14,817    14,329
Switzerland                             8,010     8,438     8,477
United Kingdom                         22,675    21,344    25,614
Japan                                 133,612   127,923   133,695
Korea, Republic of                        (D)    19,966    22,577
Other                                  47,507    51,905    52,753

                                      Percentage of all-countries
                                                 total

                                       1998      1999      2000

U.S. exports shipped by affiliates:
  All countries                         100.0     100.0     100.0
Canada                                    5.6       5.2       6.0
France                                    (D)       (D)       6.9
Germany                                  20.3      21.8      20.8
Netherlands                               2.9       3.5      (D)
Switzerland                               3.7       3.9       3.9
United Kingdom                           11.1      10.8      10.8
Japan                                    31.3      27.1      26.9
Korea, Republic of                        (D)       (D)       (D)
Other                                    15.0      15.6      16.6
U.S. imports shipped to affiliates:
  All countries                         100.0     100.0     100.0
Canada                                    5.4       5.2       5.9
France                                    4.5       5.1       (D)
Germany                                  19.7      17.0      16.3
Netherlands                               3.7       5.1       (D)
Switzerland                               2.4       2.3       2.4
United Kingdom                            5.8       6.1       6.7
Japan                                    42.4      43.0      41.5
Korea, Republic of                        (D)       (D)       (D)
Other                                     (D)       (D)      12.9

                                        Percentage of
                                        all-countries
                                            total

                                       2001      2002

U.S. exports shipped by affiliates:
  All countries                         100.0     100.0
Canada                                    5.6       4.6
France                                    6.7       7.1
Germany                                  20.1      21.6
Netherlands                               (D)       3.6
Switzerland                               4.1       4.3
United Kingdom                           10.7      10.1
Japan                                    28.0      27.4
Korea, Republic of                        (D)       3.1
Other                                    17.3      18.2
U.S. imports shipped to affiliates:
  All countries                         100.0     100.0
Canada                                    5.7       5.6
France                                    (D)       4.4
Germany                                  16.9      17.1
Netherlands                               4.9       4.4
Switzerland                               2.4       2.5
United Kingdom                            6.8       6.4
Japan                                    40.0      38.2
Korea, Republic of                        (D)       6.0
Other                                    14.2      15.5

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

                                         2003

U.S. exports shipped by affiliates:
  All countries                          100.0            7.3
Canada                                     4.7           11.1
France                                     7.0            5.8
Germany                                   21.4            6.4
Netherlands                                3.3           -1.2
Switzerland                                3.4          -15.5
United Kingdom                             9.2           -2.2
Japan                                     27.4            7.4
Korea, Republic of                         3.5           19.9
Other                                     20.0           18.3
U.S. imports shipped to affiliates:
  All countries                          100.0            6.5
Canada                                     6.4           22.0
France                                     4.3            4.6
Germany                                   17.2            6.6
Netherlands                                4.0           -3.3
Switzerland                                2.4            0.5
United Kingdom                             7.2           20.0
Japan                                     37.5            4.5
Korea, Republic of                         6.3           13.1
Other                                     14.8            1.6

(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 1998-2003.

Table 9.1. Selected Financial and Operating Data of
Majority-Owned Affiliates by Industry of Affiliate, 2002

                                              Millions of dollars

                                                             Gross
                                                           property,
                                                           plant, and
                                           Total assets    equipment

                                               (1)            (2)

      All industries                          4,573,139     1,024,364
Manufacturing                                 1,021,478       487,692
  Food                                           77,836        23,155
  Beverages and tobacco products                 26,938         6,776
  Textiles, apparel, and leather
    products                                      3,951         3,385
  Paper                                          18,425        16,077
  Printing and related support
    activities                                    9,825         5,992
  Petroleum and coal products                       (D)           (D)
  Chemicals                                     204,009       105,227
    Basic chemicals                              36,804        32,874
    Resins and synthetic rubber,
      fibers, and filaments                      31,461        24,820
    Pharmaceuticals and medicines               105,551        34,299
    Soap, cleaning compounds, and
      toilet preparations                        10,501         2,836
    Other                                        19,692        10,399
  Plastics and rubber products                   24,992        17,873
  Nonmetallic mineral products                   58,730        45,450
  Primary and fabricated metals                  45,346        29,904
    Primary metals                               23,898        17,675
    Fabricated metal products                    21,448        12,230
  Machinery                                      96,302        23,759
    Agriculture, construction, and
      mining machinery                           40,234         5,933
    Industrial machinery                          6,480         2,343
    Other                                        49,588        15,483
  Computers and electronic products              97,161        37,305
    Computers and peripheral equipment            4,883         1,977
    Communications equipment                     28,452         8,234
    Semiconductors and other electronic
      components                                 19,105        11,970
    Navigational, measuring, and other
      instruments                                27,707         8,830
    Other                                        17,014         6,294
  Electrical equipment, appliances, and
    components                                   26,126         8,682
  Transportation equipment                      216,942       106,594
    Motor vehicles, bodies and
      trailers, and parts                       198,786       101,665
    Other                                        18,156         4,929
  Other                                             (D)           (D)
Wholesale trade                                 405,104       182,144
  Motor vehicles and motor vehicle parts
    and supplies                                 86,322        37,167
  Electrical goods                               31,847         8,828
  Petroleum and petroleum products              122,532           (D)
  Other                                         164,403           (D)
Retail trade                                     60,663        40,220
  Food and beverage stores                       38,526        30,686
  Other                                          22,137         9,534
Information                                     250,598        45,617
  Publishing industries                          86,933         8,235
  Motion picture and sound recording
    industries                                   46,478         3,496
  Telecommunications                             74,322        28,498
  Other                                          42,865         5,388
Finance (except depository institutions)
  and insurance                               2,287,191        29,891
  Finance, except depository
    institutions                              1,318,748        15,467
  Insurance carriers and related
    activities                                  968,444        14,425
Real estate and rental and leasing               90,623        73,882
  Real estate                                    76,611        65,742
  Rental and leasing (except real estate)        14,012         8,140
Professional, scientific, and technical
  services                                       57,108         8,807
  Architectural, engineering, and
    related services                              8,579         2,189
  Computer systems design and related
    services                                      7,108         2,168
  Management, scientific, and technical
    consulting                                   10,577           478
  Other                                          30,843         3,971
Other industries                                400,374       156,111
  Agriculture, forestry, fishing, and
    hunting                                       4,315         2,630
  Mining                                         64,238        39,535
  Utilities                                      71,668        47,664
  Construction                                   18,774         8,228
  Transportation and warehousing                 45,651        25,839
  Management of nonbank companies and
    enterprises                                 115,541           532
  Administration, support, and waste
    management                                   25,003         3,591
  Health care and social assistance               9,038         3,025
  Accommodation and food services                38,768        19,516
  Miscellaneous services                          7,377         5,551

                                               Millions of dollars

                                             Expenditures
                                             for property,
                                              plant, and
                                               equipment      Sales

                                                 (3)            (4)

      All industries                             111,373    2,030,962
Manufacturing                                     45,714      860,568
  Food                                             1,862       54,650
  Beverages and tobacco products                     698       20,352
  Textiles, apparel, and leather
    products                                         207        3,917
  Paper                                            1,379       14,594
  Printing and related support
    activities                                       283       10,963
  Petroleum and coal products                        (D)          (D)
  Chemicals                                          (D)      142,752
    Basic chemicals                                1,855       23,720
    Resins and synthetic rubber,
      fibers, and filaments                          (D)       26,218
    Pharmaceuticals and medicines                  3,066       70,607
    Soap, cleaning compounds, and
      toilet preparations                            193        8,644
    Other                                            630       13,563
  Plastics and rubber products                       993       27,696
  Nonmetallic mineral products                     2,680       40,753
  Primary and fabricated metals                    1,682       48,569
    Primary metals                                   942       25,644
    Fabricated metal products                        740       22,925
  Machinery                                        3,075       68,426
    Agriculture, construction, and
      mining machinery                               409       17,717
    Industrial machinery                             239          (D)
    Other                                          2,427          (D)
  Computers and electronic products                2,530       92,429
    Computers and peripheral equipment               302        9,814
    Communications equipment                         466       19,203
    Semiconductors and other electronic
      components                                     631       18,352
    Navigational, measuring, and other
      instruments                                    616       22,298
    Other                                            515       22,763
  Electrical equipment, appliances, and
    components                                     1,385       19,439
  Transportation equipment                        14,598      201,062
    Motor vehicles, bodies and
      trailers, and parts                         14,325      187,737
    Other                                            272       13,324
  Other                                            3,213          (D)
Wholesale trade                                   21,621      583,660
  Motor vehicles and motor vehicle parts
    and supplies                                   9,812      129,929
  Electrical goods                                   726       57,656
  Petroleum and petroleum products                   (D)      160,240
  Other                                              (D)      235,835
Retail trade                                       4,819      120,605
  Food and beverage stores                         3,375       86,492
  Other                                            1,444       34,113
Information                                        7,109       75,786
  Publishing industries                            1,143       31,385
  Motion picture and sound recording
    industries                                       330          (D)
  Telecommunications                               5,109          (D)
  Other                                              528       15,698
Finance (except depository institutions)
  and insurance                                    5,866      164,127
  Finance, except depository
    institutions                                   4,759       53,988
  Insurance carriers and related
    activities                                     1,107      110,139
Real estate and rental and leasing                 7,723       19,031
  Real estate                                      6,655       13,359
  Rental and leasing (except real estate)          1,068        5,673
Professional, scientific, and technical
  services                                           974       42,698
  Architectural, engineering, and
    related services                                 269        7,301
  Computer systems design and related
    services                                         317        6,145
  Management, scientific, and technical
    consulting                                        56        8,211
  Other                                              332       21,041
Other industries                                  17,548      164,486
  Agriculture, forestry, fishing, and
    hunting                                          223        2,130
  Mining                                           3,354       18,679
  Utilities                                        6,305       24,707
  Construction                                     2,806       30,908
  Transportation and warehousing                   2,265       30,915
  Management of nonbank companies and
    enterprises                                       76          (D)
  Administration, support, and waste
    management                                       486       21,960
  Health care and social assistance                  271          (D)
  Accommodation and food services                  1,354       21,732
  Miscellaneous services                             409        4,754

                                                Millions of dollars

                                             Net income    Value added

                                                 (5)            (6)

      All industries                            -54,973        460,609
Manufacturing                                   -12,435        229,245
  Food                                            2,707         14,303
  Beverages and tobacco products                 -1,340          5,678
  Textiles, apparel, and leather
    products                                       -381          1,406
  Paper                                          -1,128          4,341
  Printing and related support
    activities                                      270          4,962
  Petroleum and coal products                       (D)            (D)
  Chemicals                                       2,697         45,034
    Basic chemicals                                  23          7,041
    Resins and synthetic rubber,
      fibers, and filaments                      -1,190          5,403
    Pharmaceuticals and medicines                 3,575         25,957
    Soap, cleaning compounds, and
      toilet preparations                           174          2,622
    Other                                           114          4,012
  Plastics and rubber products                      196          9,460
  Nonmetallic mineral products                    1,058         15,144
  Primary and fabricated metals                    -408         12,980
    Primary metals                                  106          5,590
    Fabricated metal products                      -513          7,390
  Machinery                                        -963         21,055
    Agriculture, construction, and
      mining machinery                           -1,026          4,306
    Industrial machinery                            (D)          1,992
    Other                                           (D)         14,757
  Computers and electronic products              -9,068         23,082
    Computers and peripheral equipment             -324          1,967
    Communications equipment                     -5,324          4,595
    Semiconductors and other electronic
      components                                 -1,875          4,729
    Navigational, measuring, and other
      instruments                                  -960          7,998
    Other                                          -585          3,794
  Electrical equipment, appliances, and
    components                                     -745          4,481
  Transportation equipment                        2,340         36,848
    Motor vehicles, bodies and
      trailers, and parts                         2,720         33,547
    Other                                          -380          3,301
  Other                                             (D)            (D)
Wholesale trade                                   9,839         75,657
  Motor vehicles and motor vehicle parts
    and supplies                                  2,273          8,686
  Electrical goods                                 -472          6,372
  Petroleum and petroleum products                3,970         27,138
  Other                                           4,068         33,461
Retail trade                                       -726         26,486
  Food and beverage stores                          360         19,410
  Other                                          -1,086          7,076
Information                                     -38,496         24,297
  Publishing industries                            -794         13,784
  Motion picture and sound recording
    industries                                      (D)          4,499
  Telecommunications                                (D)          1,850
  Other                                          -7,764          4,165
Finance (except depository institutions)
  and insurance                                 -12,275         15,216
  Finance, except depository
    institutions                                 -4,568         13,048
  Insurance carriers and related
    activities                                   -7,707          2,168
Real estate and rental and leasing                  292          9,647
  Real estate                                     1,125          7,419
  Rental and leasing (except real estate)          -833          2,228
Professional, scientific, and technical
  services                                           31         16,426
  Architectural, engineering, and
    related services                               -900          2,172
  Computer systems design and related
    services                                       -792          2,833
  Management, scientific, and technical
    consulting                                    1,320          5,661
  Other                                             402          5,760
Other industries                                 -1,203         63,634
  Agriculture, forestry, fishing, and
    hunting                                         -20            582
  Mining                                         -1,208          8,401
  Utilities                                         987          5,910
  Construction                                      178          6,102
  Transportation and warehousing                    -89         11,764
  Management of nonbank companies and
    enterprises                                     (D)            -73
  Administration, support, and waste
    management                                      369         14,868
  Health care and social assistance                 (D)          3,942
  Accommodation and food services                  -564         10,121
  Miscellaneous services                           -348          2,016

                                             Millions of
                                               dollars
                                                              Thousands
                                             Compensation        of
                                             of employees     employees

                                                 (7)             (8)

      All industries                            315,779        5,425.4
Manufacturing                                   151,299        2,236.4
  Food                                            8,217          139.4
  Beverages and tobacco products                  2,538           49.2
  Textiles, apparel, and leather
    products                                      1,058           23.5
  Paper                                           2,786           42.5
  Printing and related support
    activities                                    3,319           59.1
  Petroleum and coal products                       (D)              K
  Chemicals                                      29,823          314.2
    Basic chemicals                               4,414           55.1
    Resins and synthetic rubber,
      fibers, and filaments                       3,173           39.8
    Pharmaceuticals and medicines                18,023          157.3
    Soap, cleaning compounds, and
      toilet preparations                         1,436           21.9
    Other                                         2,777           40.2
  Plastics and rubber products                    6,829          126.1
  Nonmetallic mineral products                    8,939          155.3
  Primary and fabricated metals                   9,346          154.5
    Primary metals                                3,880           55.4
    Fabricated metal products                     5,466           99.1
  Machinery                                      17,245          257.7
    Agriculture, construction, and
      mining machinery                            3,822           58.0
    Industrial machinery                          1,849           25.9
    Other                                        11,574          173.9
    Computers and electronic products            19,048          247.6
    Computers and peripheral equipment            1,794           24.1
    Communications equipment                      4,726           49.1
    Semiconductors and other electronic
      components                                  2,301           40.9
    Navigational, measuring, and other
      instruments                                 7,002           97.6
    Other                                         3,224           35.9
  Electrical equipment, appliances, and
    components                                    4,089           80.1
  Transportation equipment                       23,907          386.8
    Motor vehicles, bodies and
      trailers, and parts                        21,072          339.1
    Other                                         2,835           47.7
  Other                                             (D)              M
Wholesale trade                                  36,290          517.9
  Motor vehicles and motor vehicle parts
    and supplies                                  4,691           54.3
  Electrical goods                                5,007           69.4
  Petroleum and petroleum products                5,000           53.9
  Other                                          21,592          340.3
Retail trade                                     16,536          581.8
  Food and beverage stores                       11,994          430.9
  Other                                           4,543          150.9
Information                                      17,118          238.8
  Publishing industries                           9,491          121.8
  Motion picture and sound recording
    industries                                    1,764           33.6
  Telecommunications                              2,547           38.2
  Other                                           3,316           45.2
Finance (except depository institutions)
  and insurance                                  30,915          232.3
  Finance, except depository
    institutions                                 17,606           87.8
  Insurance carriers and related
    activities                                   13,309          144.5
Real estate and rental and leasing                2,216           33.7
  Real estate                                     1,187           16.2
  Rental and leasing (except real estate)         1,030           17.5
Professional, scientific, and technical
  services                                       12,901          165.0
  Architectural, engineering, and
    related services                              2,532           37.9
  Computer systems design and related
    services                                      2,878           29.2
  Management, scientific, and technical
    consulting                                    2,678           37.9
  Other                                           4,813           59.9
Other industries                                 48,503           1,42
  Agriculture, forestry, fishing, and
    hunting                                         407            9.1
  Mining                                          5,048           66.5
  Utilities                                       2,010           27.0
  Construction                                    5,214           77.9
  Transportation and warehousing                  9,727          260.8
  Management of nonbank companies and
    enterprises                                     453            4.2
  Administration, support, and waste
    management                                   13,279          517.1
  Health care and social assistance               3,008           85.1
  Accommodation and food services                 7,957          329.0
  Miscellaneous services                          1,401           42.8

                                                Millions of dollars

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

                                                (9)             (10)

      All industries                            140,510         335,021
Manufacturing                                    88,462         137,726
  Food                                            3,714           2,303
  Beverages and tobacco products                    866           2,012
  Textiles, apparel, and leather
    products                                        429             404
  Paper                                           1,318           2,719
  Printing and related support
    activities                                      262             622
  Petroleum and coal products                        (D)            (D)
  Chemicals                                      14,405          18,707
    Basic chemicals                               3,784           2,226
    Resins and synthetic rubber,
      fibers, and filaments                       2,929           3,322
    Pharmaceuticals and medicines                 5,713          11,205
    Soap, cleaning compounds, and
      toilet preparations                           466             474
    Other                                         1,513           1,480
  Plastics and rubber products                    2,490           4,448
  Nonmetallic mineral products                    1,361           1,458
  Primary and fabricated metals                   3,415           7,705
    Primary metals                                1,999           5,649
    Fabricated metal products                     1,416           2,056
  Machinery                                       8,269           7,230
    Agriculture, construction, and
      mining machinery                            3,024           1,490
    Industrial machinery                            997           1,130
    Other                                         4,248           4,611
  Computers and electronic products              13,084          25,185
    Computers and peripheral equipment            2,625             (D)
    Communications equipment                      2,167           4,016
    Semiconductors and other electronic
      components                                  4,406           4,991
    Navigational, measuring, and other
      instruments                                 2,764           3,797
    Other                                         1,121             (D)
  Electrical equipment, appliances, and
    components                                    3,027           1,675
  Transportation equipment                       30,772          51,815
    Motor vehicles, bodies and
      trailers, and parts                        28,282          49,203
    Other                                         2,490           2,612
  Other                                             (D)             (D)
Wholesale trade                                  47,126         188,761
  Motor vehicles and motor vehicle parts
    and supplies                                  3,758          68,485
  Electrical goods                                5,448          30,023
  Petroleum and petroleum products                9,163          22,638
  Other                                          28,757          67,615
Retail trade                                        674           3,979
  Food and beverage stores                            1             460
  Other                                             673           3,519
Information                                       1,064             865
  Publishing industries                             780             163
  Motion picture and sound recording
    industries                                      284             (D)
  Telecommunications                                  1             (D)
  Other                                             (*)             (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                  251             482
  Real estate                                         9             (D)
  Rental and leasing (except real estate)           242             (D)
Professional, scientific, and technical
  services                                          405             316
  Architectural, engineering, and
    related services                                326              96
  Computer systems design and related
    services                                         11              76
  Management, scientific, and technical
    consulting                                      (*)               0
  Other                                              67             143
Other industries                                  2,526           2,892
  Agriculture, forestry, fishing, and
    hunting                                         385             207
  Mining                                          1,819              50
  Utilities                                          93           2,281
  Construction                                       76             186
  Transportation and warehousing                     70              28
  Management of nonbank companies and
    enterprises                                       0               0
  Administration, support, and waste
    management                                      (*)             (*)
  Health care and social assistance                 (D)             (D)
  Accommodation and food services                   (*)               6
  Miscellaneous services                             (D)            (D)

                                           Millions of dollars

                                              Research and
                                               development
                                              performed by
                                                affiliates

                                                   (11)

      All industries                                 27,507
Manufacturing                                        20,128
  Food                                                  368
  Beverages and tobacco products                         80
  Textiles, apparel, and leather
    products                                            (D)
  Paper                                                  75
  Printing and related support
    activities                                           39
  Petroleum and coal products                           (D)
  Chemicals                                           7,610
    Basic chemicals                                     608
    Resins and synthetic rubber,
      fibers, and filaments                             331
    Pharmaceuticals and medicines                     6,373
    Soap, cleaning compounds, and
      toilet preparations                                74
    Other                                               224
  Plastics and rubber products                          275
  Nonmetallic mineral products                          204
  Primary and fabricated metals                         254
    Primary metals                                       46
    Fabricated metal products                           208
  Machinery                                           1,681
    Agriculture, construction, and
      mining machinery                                  387
    Industrial machinery                                192
    Other                                             1,103
  Computers and electronic products                   4,985
    Computers and peripheral equipment                  (D)
    Communications equipment                          2,055
    Semiconductors and other electronic
      components                                        (D)
    Navigational, measuring, and other
      instruments                                     1,734
    Other                                                42
  Electrical equipment, appliances, and
    components                                          380
  Transportation equipment                            3,302
    Motor vehicles, bodies and
      trailers, and parts                             3,041
    Other                                               261
  Other                                                 708
Wholesale trade                                       4,855
  Motor vehicles and motor vehicle parts
    and supplies                                        337
  Electrical goods                                    1,079
  Petroleum and petroleum products                      (D)
  Other                                                 (D)
Retail trade                                            (D)
  Food and beverage stores                              (*)
  Other                                                 (D)
Information                                             803
  Publishing industries                                 763
  Motion picture and sound recording
    industries                                            3
  Telecommunications                                     11
  Other                                                  26
Finance (except depository institutions)
  and insurance                                         (D)
  Finance, except depository
    institutions                                        (D)
  Insurance carriers and related
    activities                                            6
Real estate and rental and leasing                        9
  Real estate                                             1
  Rental and leasing (except real estate)                 8
Professional, scientific, and technical
  services                                            1,119
  Architectural, engineering, and
    related services                                     86
  Computer systems design and related
    services                                            171
  Management, scientific, and technical
    consulting                                            3
  Other                                                 859
Other industries                                        (D)
  Agriculture, forestry, fishing, and
    hunting                                              82
  Mining                                                (D)
  Utilities                                               3
  Construction                                          (D)
  Transportation and warehousing                          3
  Management of nonbank companies and
    enterprises                                         (*)
  Administration, support, and waste
    management                                            3
  Health care and social assistance                     (D)
  Accommodation and food services                       (*)
  Miscellaneous services                                (D)

(*) Less than $500,000.

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

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 2002 are revised.

Table 9.2. Selected Data of Majority-Owned Nonbank U.S.
Affiliates by Industry of Affiliate, 2003

                                               Millions of dollars

                                                               Gross
                                                             property,
                                                             plant, and
                                            Total assets     equipment

                                                 (1)             (2)

      All industries                          5,093,531       1,049,569
Manufacturing                                 1,035,133         484,624
  Food                                           46,672          19,317
  Beverages and tobacco products                 27,426           7,224
  Textiles, apparel, and leather
    products                                        (D)           2,830
  Paper                                          19,596          16,690
  Printing and related support
    activities                                    9,098           5,803
  Petroleum and coal products                       (D)             (D)
  Chemicals                                     235,676         106,540
    Basic chemicals                              27,316          30,425
    Resins and synthetic rubber,
      fibers, and filaments                      31,241          25,207
    Pharmaceuticals and medicines               112,631          34,194
    Soap, cleaning compounds, and
      toilet preparations                        45,057           6,345
    Other                                        19,430          10,369
  Plastics and rubber products                   26,163          18,062
  Nonmetallic mineral products                   60,583          46,530
  Primary and fabricated metals                  44,551          28,629
    Primary metals                               23,404          16,897
    Fabricated metal products                    21,147          11,732
  Machinery                                      99,454          22,880
    Agriculture, construction, and
      mining machinery                           41,733           5,093
    Industrial machinery                          6,597           2,438
    Other                                        51,124          15,350
  Computers and electronic products              92,661          34,191
    Computers and peripheral equipment              (D)           2,071
    Communications equipment                     27,372           7,517
    Semiconductors and other electronic
      components                                 17,141          10,949
    Navigational, measuring, and other
      instruments                                25,973           7,775
    Other                                           (D)           5,880
  Electrical equipment, appliances, and
    components                                   26,957           9,380
  Transportation equipment                      223,885         104,947
    Motor vehicles, bodies and
      trailers, and parts                       205,620          99,997
    Other                                        18,266           4,950
  Other                                          61,721             (D)
Wholesale trade                                 453,529         195,086
  Motor vehicles and motor vehicle parts
    and supplies                                108,285          54,557
  Electrical goods                               30,440           7,724
  Petroleum and petroleum products              148,475             (D)
  Other                                         166,329             (D)
Retail trade                                     61,254          42,035
  Food and beverage stores                       38,530          31,818
  Other                                          22,724          10,217
Information                                     265,832          43,063
  Publishing industries                          88,106           8,833
  Motion picture and sound recording
    industries                                   47,052           3,428
  Telecommunications                             59,317          25,316
  Other                                          71,356           5,486
Finance (except depository institutions)
  and insurance                               2,710,029          32,537
  Finance, except depository
    institutions                              1,674,977          18,148
  Insurance carriers and related
    activities                                1,035,052          14,389
Real estate and rental and leasing               91,170          75,103
  Real estate                                    76,861          66,668
  Rental and leasing (except real
    estate)                                      14,309           8,435
Professional, scientific, and technical
  services                                       62,246           8,494
  Architectural, engineering, and
    related services                              7,967           1,952
  Computer systems design and related
    services                                      6,916           2,042
  Management, scientific, and technical
    consulting                                   11,663             504
  Other                                          35,701           3,996
Other industries                                414,339         168,626
  Agriculture, forestry, fishing, and
    hunting                                       4,063           2,675
  Mining                                         56,816          35,901
  Utilities                                      89,932          61,791
  Construction                                   18,027           7,821
  Transportation and warehousing                 40,682          27,407
  Management of nonbank companies and
    enterprises                                 120,265             550
  Administration, support, and waste
    management                                   26,419           3,605
  Health care and social assistance               9,033           3,077
  Accommodation and food services                41,538          19,941
  Miscellaneous services                          7,563           5,857

                                              Millions of dollars

                                            Expenditures
                                            for property,
                                             plant, and
                                              equipment       Sales

                                                 (3)           (4)

      All industries                             108,999    2,136,617
Manufacturing                                     39,802      854,519
  Food                                             1,399       47,880
  Beverages and tobacco products                     723       22,654
  Textiles, apparel, and leather
    products                                         161        3,574
  Paper                                              875       15,429
  Printing and related support
    activities                                       303       10,860
  Petroleum and coal products                        (D)          (D)
  Chemicals                                          (D)      160,222
    Basic chemicals                                1,490       23,191
    Resins and synthetic rubber,
      fibers, and filaments                          (D)       29,388
    Pharmaceuticals and medicines                  3,402       75,536
    Soap, cleaning compounds, and
      toilet preparations                            458       18,165
    Other                                            589       13,941
  Plastics and rubber products                     1,185       30,842
  Nonmetallic mineral products                     2,602       41,324
  Primary and fabricated metals                    1,680       46,826
    Primary metals                                   995       24,272
    Fabricated metal products                        685       22,554
  Machinery                                        2,802       65,263
    Agriculture, construction, and
      mining machinery                               470       16,386
    Industrial machinery                             192        7,308
    Other                                          2,140       41,568
  Computers and electronic products                2,251       91,809
    Computers and peripheral equipment               316       11,193
    Communications equipment                         483       17,361
    Semiconductors and other electronic
      components                                     478       16,852
    Navigational, measuring, and other
      instruments                                    501       22,806
    Other                                            474       23,598
  Electrical equipment, appliances, and
    components                                     1,406       21,756
  Transportation equipment                        12,862      199,677
    Motor vehicles, bodies and
      trailers, and parts                         12,603      185,462
    Other                                            260       14,215
  Other                                            1,172          (D)
Wholesale trade                                   24,661      656,019
  Motor vehicles and motor vehicle parts
    and supplies                                  12,724      146,384
  Electrical goods                                   703       56,487
  Petroleum and petroleum products                   (D)      221,825
  Other                                              (D)      231,323
Retail trade                                       5,177      121,967
  Food and beverage stores                         3,404       88,339
  Other                                            1,773       33,627
Information                                        6,992       81,471
  Publishing industries                            1,123       31,514
  Motion picture and sound recording
    industries                                       333       11,997
  Telecommunications                               4,982       19,371
  Other                                              552       18,589
Finance (except depository institutions)
  and insurance                                    6,506      174,766
  Finance, except depository
    institutions                                   5,356       60,998
  Insurance carriers and related
    activities                                     1,150      113,768
Real estate and rental and leasing                 7,595       19,839
  Real estate                                      6,518       14,441
  Rental and leasing (except real
    estate)                                        1,077        5,398
Professional, scientific, and technical
  services                                           835       49,068
  Architectural, engineering, and
    related services                                 152        6,551
  Computer systems design and related
    services                                         246        6,302
  Management, scientific, and technical
    consulting                                        52        8,334
  Other                                              384       27,881
Other industries                                  17,432      178,969
  Agriculture, forestry, fishing, and
    hunting                                          236        2,257
  Mining                                           3,256       18,472
  Utilities                                        6,636       37,610
  Construction                                     2,881       28,508
  Transportation and warehousing                   1,944       35,061
  Management of nonbank companies and
    enterprises                                       53        1,488
  Administration, support, and waste
    management                                       439       20,211
  Health care and social assistance                  245        7,671
  Accommodation and food services                  1,347       22,553
  Miscellaneous services                             395        5,137

                                              Millions of dollars

                                           Net income    Value added

                                               (5)            (6)

      All industries                           30,580        486,344
Manufacturing                                   6,046        227,682
  Food                                            -98          9,309
  Beverages and tobacco products               -1,236          6,948
  Textiles, apparel, and leather
    products                                      -17          1,235
  Paper                                          -401          4,237
  Printing and related support
    activities                                    137          4,615
  Petroleum and coal products                     (D)            (D)
  Chemicals                                     6,899         49,950
    Basic chemicals                              -671          6,070
    Resins and synthetic rubber,
      fibers, and filaments                      -102          5,372
    Pharmaceuticals and medicines               2,937         28,176
    Soap, cleaning compounds, and
      toilet preparations                       4,568          6,583
    Other                                         168          3,748
  Plastics and rubber products                   -208          9,004
  Nonmetallic mineral products                    848         14,733
  Primary and fabricated metals                  -609         12,327
    Primary metals                               -645          4,497
    Fabricated metal products                      37          7,830
  Machinery                                      -278         19,871
    Agriculture, construction, and
      mining machinery                           -564          3,464
    Industrial machinery                         -468          1,921
    Other                                         754         14,486
  Computers and electronic products            -4,221         22,849
    Computers and peripheral equipment           -253          2,272
    Communications equipment                   -3,082          4,527
    Semiconductors and other electronic
      components                                 -240          3,568
    Navigational, measuring, and other
      instruments                                -950          8,343
    Other                                         305          4,139
  Electrical equipment, appliances, and
    components                                    -97          5,510
  Transportation equipment                      2,971         35,191
    Motor vehicles, bodies and
      trailers, and parts                       3,251         31,778
    Other                                        -280          3,413
  Other                                           (D)            (D)
Wholesale trade                                16,711         83,843
  Motor vehicles and motor vehicle parts
    and supplies                                3,268         11,666
  Electrical goods                                153          6,865
  Petroleum and petroleum products              8,357         30,709
  Other                                         4,931         34,603
Retail trade                                      939         27,878
  Food and beverage stores                        812         20,122
  Other                                           127          7,756
Information                                    -4,076         26,836
  Publishing industries                           -77         14,124
  Motion picture and sound recording
    industries                                    -85          2,642
  Telecommunications                           -3,668          4,316
  Other                                          -246          5,754
Finance (except depository institutions)
  and insurance                                 6,328         25,577
  Finance, except depository
    institutions                                2,369         12,487
  Insurance carriers and related
    activities                                  3,959         13,090
Real estate and rental and leasing                864         10,031
  Real estate                                     954          7,923
  Rental and leasing (except real
    estate)                                       -89          2,109
Professional, scientific, and technical
  services                                        609         17,872
  Architectural, engineering, and
    related services                             -415          2,546
  Computer systems design and related
    services                                     -925          2,983
  Management, scientific, and technical
    consulting                                  1,487          5,875
  Other                                           463          6,468
Other industries                                3,160         66,624
  Agriculture, forestry, fishing, and
    hunting                                        45            610
  Mining                                          554          8,842
  Utilities                                       741          9,291
  Construction                                    450          5,824
  Transportation and warehousing                  142         10,777
  Management of nonbank companies and
    enterprises                                   458           -372
  Administration, support, and waste
    management                                    682         13,896
  Health care and social assistance               260          4,095
  Accommodation and food services                  70         11,294
  Miscellaneous services                         -242          2,367

                                           Millions of
                                              dollars

                                                           Thousands
                                           Compensation       of
                                           of employees    employees

                                               (7)            (8)

      All industries                            317,948      5,253.0
Manufacturing                                   151,447      2,138.3
  Food                                            6,542        114.7
  Beverages and tobacco products                  3,229         50.1
  Textiles, apparel, and leather
    products                                        958         19.4
  Paper                                           2,966         44.6
  Printing and related support
    activities                                    3,400         56.1
  Petroleum and coal products                       (D)            K
  Chemicals                                      31,319        305.4
    Basic chemicals                               3,975         43.5
    Resins and synthetic rubber,
      fibers, and filaments                       2,960         36.5
    Pharmaceuticals and medicines                18,683        150.0
    Soap, cleaning compounds, and
      toilet preparations                         2,853         37.2
    Other                                         2,847         38.2
  Plastics and rubber products                    7,057        120.9
  Nonmetallic mineral products                    9,036        153.4
  Primary and fabricated metals                   9,299        144.2
    Primary metals                                3,359         50.8
    Fabricated metal products                     5,940         93.4
  Machinery                                      17,010        247.6
    Agriculture, construction, and
      mining machinery                            3,646         53.9
    Industrial machinery                          1,961         25.7
    Other                                        11,404        168.0
  Computers and electronic products              18.200        219.8
    Computers and peripheral equipment            1,926         24.8
    Communications equipment                      4,102         43.2
    Semiconductors and other electronic
      components                                  2,075         34.2
    Navigational, measuring, and other
      instruments                                 6,843         84.7
    Other                                         3,254         32.9
  Electrical equipment, appliances, and
    components                                    4,454         84.4
  Transportation equipment                       24,196        377.1
    Motor vehicles, bodies and
      trailers, and parts                        21,164        330.9
    Other                                         3,033         46.1
  Other                                             (D)            M
Wholesale trade                                  37,716        512.1
  Motor vehicles and motor vehicle parts
    and supplies                                  5,857         69.4
  Electrical goods                                4,752         59.3
  Petroleum and petroleum products                5,226         51.6
  Other                                          21,882        331.8
Retail trade                                     16,687        564.9
  Food and beverage stores                       12,158        419.9
  Other                                           4,529        145.0
Information                                      17,495        239.1
  Publishing industries                           9,575        119.9
  Motion picture and sound recording
    industries                                    1,681         30.0
  Telecommunications                              2,685         39.5
  Other                                           3,554         49.7
Finance (except depository institutions)
  and insurance                                  33,133        244.5
  Finance, except depository
    institutions                                 19,547        109.6
  Insurance carriers and related
    activities                                   13,587        134.9
Real estate and rental and leasing                2,305         36.3
  Real estate                                     1,300         19.2
  Rental and leasing (except real
    estate)                                       1,005         17.1
Professional, scientific, and technical
  services                                       13,107        167.8
  Architectural, engineering, and
    related services                              2,484         36.6
  Computer systems design and related
    services                                      2,889         28.4
  Management, scientific, and technical
    consulting                                    2,788         38.5
  Other                                           4,946         64.3
Other industries                                 46,058      1,349.9
  Agriculture, forestry, fishing, and
    hunting                                         390          8.3
  Mining                                          4,371         61.3
  Utilities                                       2,653         34.7
  Construction                                    4,579         69.8
  Transportation and warehousing                  8,474        196.1
  Management of nonbank companies and
    enterprises                                     377          3.7
  Administration, support, and waste
    management                                   12,105        509.8
  Health care and social assistance               3,027         80.0
  Accommodation and food services                 8,529        342.7
  Miscellaneous services                          1,553         43.5

                                                Millions of dollars

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

                                               (9)             (10)

      All industries                            150,829         356,659
Manufacturing                                    93,260         138,965
  Food                                            7,397           2,054
  Beverages and tobacco products                    907           1,808
  Textiles, apparel, and leather
    products                                        474             341
  Paper                                           1,307           2,977
  Printing and related support
    activities                                      254             211
  Petroleum and coal products                       (D)             (D)
  Chemicals                                      16,071          21,084
    Basic chemicals                               4,033           2,049
    Resins and synthetic rubber,
      fibers, and filaments                       3,271           3,719
    Pharmaceuticals and medicines                 6,341          13,210
    Soap, cleaning compounds, and
      toilet preparations                           619             457
    Other                                         1,806           1,650
  Plastics and rubber products                    2,525           4,735
  Nonmetallic mineral products                    1,391           1,446
  Primary and fabricated metals                   3,709           6,776
    Primary metals                                2,214           4,509
    Fabricated metal products                     1,494           2,267
  Machinery                                       8,648           9,254
    Agriculture, construction, and
      mining machinery                            3,105           1,619
    Industrial machinery                          1,148           1,155
    Other                                         4,396           6,481
  Computers and electronic products              13,987          24,218
    Computers and peripheral equipment            2,857           5,160
    Communications equipment                        (D)             (D)
    Semiconductors and other electronic
      components                                  4,913           4,885
    Navigational, measuring, and other
      instruments                                 3,119           3,683
    Other                                           (D)             (D)
  Electrical equipment, appliances, and
    components                                    3,009           2,103
  Transportation equipment                       28,713          52,705
    Motor vehicles, bodies and
      trailers, and parts                        26,286          50,123
    Other                                         2,427           2,583
  Other                                             (D)             (D)
Wholesale trade                                  53,113         206,503
  Motor vehicles and motor vehicle parts
    and supplies                                  7,554          75,260
  Electrical goods                                5,485          31,556
  Petroleum and petroleum products               11,095          30,365
  Other                                          28,979          69,321
Retail trade                                        597           3,545
  Food and beverage stores                         (*)              491
  Other                                             597           3,054
Information                                       1,014           1,059
  Publishing industries                             726             128
  Motion picture and sound recording
    industries                                      (D)             (D)
  Telecommunications                                  1             (D)
  Other                                             (D)               5
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)             396
  Real estate                                         9               1
  Rental and leasing (except real
    estate)                                         (D)             395
Professional, scientific, and technical
  services                                          (D)             366
  Architectural, engineering, and
    related services                                210             103
  Computer systems design and related
    services                                          9             (D)
  Management, scientific, and technical
    consulting                                        0               0
  Other                                             (D)             (D)
Other industries                                  2,239           5,824
  Agriculture, forestry, fishing, and
    hunting                                         299             148
  Mining                                          1,691              73
  Utilities                                         (D)           5,404
  Construction                                       86              30
  Transportation and warehousing                    (D)             (D)
  Management of nonbank companies and
    enterprises                                       0               3
  Administration, support, and waste
    management                                      (*)               0
  Health care and social assistance                 (D)             (D)
  Accommodation and food services                   (*)               2
  Miscellaneous services                             19              21

                                               Millions of dollars

                                                   Research and
                                                    development
                                                     performed
                                                   by affiliates

                                                         (11)

      All industries                                     29,524
Manufacturing                                            22,017
  Food                                                      118
  Beverages and tobacco products                            (D)
  Textiles, apparel, and leather
    products                                                 22
  Paper                                                      64
  Printing and related support
    activities                                               51
  Petroleum and coal products                               (D)
  Chemicals                                               9,413
    Basic chemicals                                         589
    Resins and synthetic rubber,
      fibers, and filaments                                 307
    Pharmaceuticals and medicines                         7,974
    Soap, cleaning compounds, and
      toilet preparations                                   302
    Other                                                   242
  Plastics and rubber products                              412
  Nonmetallic mineral products                              196
  Primary and fabricated metals                             216
    Primary metals                                           34
    Fabricated metal products                               183
  Machinery                                               1,563
    Agriculture, construction, and
      mining machinery                                      364
    Industrial machinery                                    212
    Other                                                   987
  Computers and electronic products                       5,116
    Computers and peripheral equipment                      758
    Communications equipment                              1,769
    Semiconductors and other electronic
      components                                            427
    Navigational, measuring, and other
      instruments                                         2,092
    Other                                                    70
  Electrical equipment, appliances, and
    components                                              352
  Transportation equipment                                3,519
    Motor vehicles, bodies and
      trailers, and parts                                 3,256
    Other                                                   262
  Other                                                     671
Wholesale trade                                           5,137
  Motor vehicles and motor vehicle parts
    and supplies                                            496
  Electrical goods                                          935
  Petroleum and petroleum products
  Other                                                     (D)
Retail trade                                                (D)
  Food and beverage stores                                  (*)
  Other                                                     (D)
Information                                                 853
  Publishing industries                                     805
  Motion picture and sound recording
    industries                                                1
  Telecommunications                                         12
  Other                                                      35
Finance (except depository institutions)
  and insurance                                              14
  Finance, except depository
    institutions                                             13
  Insurance carriers and related
    activities                                                1
Real estate and rental and leasing                            8
  Real estate                                                 1
  Rental and leasing (except real
    estate)                                                   7
Professional, scientific, and technical
  services                                                1,130
  Architectural, engineering, and
    related services                                         75
  Computer systems design and related
    services                                                193
  Management, scientific, and technical
    consulting                                                3
  Other                                                     859
Other industries                                            (D)
  Agriculture, forestry, fishing, and
    hunting                                                  76
  Mining                                                    148
  Utilities                                                   5
  Construction                                                9
  Transportation and warehousing                              3
  Management of nonbank companies and
    enterprises                                             (*)
  Administration, support, and waste
    management                                                3
  Health care and social assistance                         (D)
  Accommodation and food services                           (*)
  Miscellaneous services                                    (D)

(*) Less than $500,000.

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

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 preliminary.

Table 10.1. Selected Financial and Operating Data of Majority-Owned
Affiliates by Country of Ultimate Beneficial Owner, 2002

                                         Millions of dollars

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

                                   (1)           (2)            (3)

    All countries               4,573,139      1,024,364        111,373
Canada                            331,130         86,421          7,620
Europe                          3,424,902        650,278         69,535
  Austria                           1,900          1,055            148
  Belgium                          45,329         15,243          1,042
  Denmark                          16,568          3,275            450
  Finland                          14,095          7,904            361
  France                          445,084         68,102          6,991
  Germany                         542,314        180,949         24,845
  Ireland                          13,015          5,600            369
  Italy                            40,418         12,271          1,051
  Luxembourg                        7,617          3,442            558
  Netherlands                     529,323         84,813          8,861
  Norway                            6,396          2,262            390
  Spain                             7,912          2,916            291
  Sweden                           56,988         15,188          2,008
  Switzerland                     874,172         35,271          3,677
  United Kingdom                  820,099        209,599         18,117
  Other                             3,672          2,390            375
Latin America and Other
  Western Hemisphere              244,112         66,398          7,310
  South and Central America        35,018         15,769          1,663
    Brazil                          3,917          1,780            175
    Mexico                         19,976          6,487            636
    Panama                          1,338            (D)            (D)
    Venezuela                         (D)            (D)            (D)
    Other                             (D)            529             80
  Other Western Hemisphere        209,094         50,628          5,647
    Bahamas                         1,073            409             27
    Bermuda                       136,161         35,510          3,974
    Netherlands Antilles              (D)            (D)            (D)
    United Kingdom
      Islands, Caribbean           60,224          7,714            967
    Other                             (D)            (D)            (D)
Africa                              6,029          3,831            637
  South Africa                      5,061          3,398            613
  Other                               968            433             25
Middle East                        23,943         18,417          1,572
  Israel                            3,728          1,049            273
  Kuwait                            1,825          1,414             72
  Lebanon                             870            903             59
  Saudi Arabia                     11,986         11,114            716
  United Arab Emirates              2,749          2,746            293
  Other                             2,785          1,191            159
Asia and Pacific                  522,545        191,176         23,699
  Australia                        69,190         18,251          2,092
  China                             1,193            618             69
  Hong Kong                         6,217          4,697            478
  India                               378            134             11
  Japan                           412,619        147,327         19,562
  Korea, Republic of               12,601          5,907            677
  Malaysia                          1,648          1,044             66
  New Zealand                         359             60              3
  Singapore                         8,645          5,312            362
  Taiwan                            8,517          6,770            240
  Other                             1,177          1,055            139
United States                      20,478          7,843          1,001
Addenda:
  European Union (15) (1)       2,542,468        611,621         65,366
  OPEC (2)                         26,094         21,547          1,920

                                            Millions of dollars

                                Sales        Net income    Value added

                                 (4)            (5)            (6)

    All countries               2,030,962        -54,973        460,609
Canada                            127,099         -4,404         35,496
Europe                          1,238,745        -30,966        299,965
  Austria                           2,434             15            655
  Belgium                          25,940            239          6,997
  Denmark                          10,007              5          2,738
  Finland                          16,499         -1,030          3,877
  France                          150,021         -2,841         40,947
  Germany                         299,259        -24,479         59,434
  Ireland                          10,566            161          3,291
  Italy                            24,140           -317          5,824
  Luxembourg                        3,539             90          1,071
  Netherlands                     214,593          1,455         39,102
  Norway                            8,458           -633            833
  Spain                             5,387           -289            989
  Sweden                           41,903           -664         11,972
  Switzerland                     109,484         -4,590         30,809
  United Kingdom                  310,414          1,842         90,124
  Other                             6,101             71          1,302
Latin America and Other
  Western Hemisphere              123,773        -13,519         36,737
  South and Central America        45,152           -720         10,041
    Brazil                            (D)            (D)            723
    Mexico                         15,079           -565          3,299
    Panama                          1,299           -422            (D)
    Venezuela                         (D)            (D)            (D)
    Other                           2,616            -18            264
  Other Western Hemisphere         78,621        -12,799         26,696
    Bahamas                           351              5            149
    Bermuda                        62,324        -12,165         21,745
    Netherlands Antilles            4,584           -353            (D)
    United Kingdom
      Islands, Caribbean            9,948           -224          1,995
    Other                           1,415            -61            (D)
Africa                              5,288            -16            981
  South Africa                      4,876            -36            926
  Other                               412             20             55
Middle East                        30,410           -682          7,439
  Israel                            3,104           -136            631
  Kuwait                              583             42            192
  Lebanon                             436              5            188
  Saudi Arabia                        (D)            (D)          5,105
  United Arab Emirates                514              3            233
  Other                               (D)            (D)          1,089
Asia and Pacific                  487,844         -4,592         74,947
  Australia                        22,965         -6,157          6,565
  China                             1,984             -9            289
  Hong Kong                         4,818             44          1,213
  India                               476            -35             88
  Japan                           409,820          1,906         61,099
  Korea, Republic of               30,630            296          2,094
  Malaysia                            827             -6            317
  New Zealand                       1,043             -9             70
  Singapore                         5,532           -213          1,756
  Taiwan                            9,179           -410          1,312
  Other                               568              1            144
United States                      17,803           -795          5,044
Addenda:
  European Union (15) (1)       1,116,790        -25,722        267,384
  OPEC (2)                            (D)            (D)            (D)

                                            Millions of dollars

                                                           U.S. exports
                                                             of goods
                              Compensation    Thousands      shipped by
                              of employees   of employees    affiliates

                                  (7)            (8)            (9)

    All countries                 315,779        5,425.4        140,510
Canada                             24,858          472.5          6,401
Europe                            218,018        3,758.7         74,751
  Austria                             449            8.3            359
  Belgium                           3,968          135.4            684
  Denmark                           2,287           46.0            511
  Finland                           2,796           39.5          1,355
  France                           28,836          468.5         10,043
  Germany                          47,541          691.2         30,351
  Ireland                           2,117           35.8             94
  Italy                             4,202           92.9          1,773
  Luxembourg                          543           13.7            303
  Netherlands                      27,965          520.4          5,022
  Norway                            1,091           15.3            203
  Spain                               844           19.8            219
  Sweden                            9,261          224.9          3,510
  Switzerland                      31,886          445.6          5,998
  United Kingdom                   53,734          991.6         14,241
  Other                               498            9.6             85
Latin America and Other
  Western Hemisphere               22,059          344.3          9,077
  South and Central America         3,796           67.2          2,490
    Brazil                            357            5.4            (D)
    Mexico                          2,294           46.3            698
    Panama                            (D)              I            (D)
    Venezuela                         (D)              H            (D)
    Other                             200            4.5             86
  Other Western Hemisphere         18,262          277.1          6,587
    Bahamas                            85            2.5             13
    Bermuda                        14,073          215.4          6,486
    Netherlands Antilles              (D)              J             27
    United Kingdom
      Islands, Caribbean            1,831           27.0             42
    Other                            (D)               J             18
Africa                                776           10.9            359
  South Africa                        741           10.2            358
  Other                                35            0.7            (*)
Middle East                         2,321           47.8            736
  Israel                              461            8.9            257
  Kuwait                               29            0.9            (D)
  Lebanon                             105            2.6            (D)
  Saudi Arabia                        806           10.9            (D)
  United Arab Emirates                 84            1.7            (D)
  Other                               836           22.7             98
Asia and Pacific                   44,917          751.6         45,087
  Australia                         3,619           55.4            313
  China                               213            3.4            (D)
  Hong Kong                           515           12.3            142
  India                               106            1.6              6
  Japan                            37,507          621.0         38,531
  Korea, Republic of                  804           12.3          4,368
  Malaysia                            243            5.2            (D)
  New Zealand                          25            0.4             18
  Singapore                           946           20.5            (D)
  Taiwan                              841           16.1            839
  Other                                99            3.3             13
United States                       2,830           39.7          4,100
Addenda:
  European Union (15) (1)         184,696        3,291.7         68,472
  OPEC (2)                            (D)              J            796

                                 Millions of dollars

                                               Research
                              U.S. Imports       and
                                of goods     development
                              shipped to     performed by
                              affiliates      affiliates

                                 (10)            (11)

    All countries                 335,021         27,507
Canada                             18,634          1,599
Europe                            137,838         20,532
  Austria                             (D)             15
  Belgium                           1,137             87
  Denmark                           1,427            114
  Finland                           4,979            544
  France                           14,608          2,860
  Germany                          57,386          5,863
  Ireland                             212            369
  Italy                             3,461            261
  Luxembourg                          (D)            (D)
  Netherlands                      14,817          1,696
  Norway                              868             53
  Spain                               651            (D)
  Sweden                            5,373            270
  Switzerland                       8,438          2,920
  United Kingdom                   21,344          5,427
  Other                               818              5
Latin America and Other
  Western Hemisphere               15,331          1,066
  South and Central America        11,756            (D)
    Brazil                          2,940              0
    Mexico                          2,377             45
    Panama                            (D)            (D)
    Venezuela                         (D)              0
    Other                           1,435              2
  Other Western Hemisphere          3,575            (D)
    Bahamas                           (D)            (*)
    Bermuda                         2,593            (D)
    Netherlands Antilles               18            (D)
    United Kingdom
      Islands, Caribbean              927            (D)
    Other                             (D)            (*)
Africa                                399             33
  South Africa                        (D)             33
  Other                               (D)              0
Middle East                         7,120            175
  Israel                              (D)             89
  Kuwait                              (*)              0
  Lebanon                               2            (*)
  Saudi Arabia                        (D)            (D)
  United Arab Emirates                 41              0
  Other                                88            (D)
Asia and Pacific                  152,384          3,413
  Australia                           512             36
  China                               248             18
  Hong Kong                           708            (D)
  India                                10              0
  Japan                           127,923          3,159
  Korea, Republic of               19,966            (D)
  Malaysia                             13            (D)
  New Zealand                         836              1
  Singapore                           429            (D)
  Taiwan                            1,644             83
  Other                                94              0
United States                       3,315            689
Addenda:
  European Union (15) (1)         127,723
  OPEC (2)                            (D)         17,554
                                                      18
(*) 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, 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 2002 are revised.

Table 10.2. Selected Data of Majority-Owned Nonbank U.S. Affiliates by
Country of Ultimate Beneficial Owner, 2003

                                         Millions of dollars

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

                                 (1)            (2)            (3)

    All countries               5,093,531      1,049,569        108,999
Canada                            335,581         88,782          8,086
Europe                          3,870,708        672,166         68,690
  Austria                             (D)          1,101            124
  Belgium                          54,672         15,843            861
  Denmark                             (D)            (D)            353
  Finland                          14,071          7,916            419
  France                          515,925         67,104          6,232
  Germany                         572,120        198,585         25,129
  Ireland                          14,344          6,082            385
  Italy                            35,670         11,351            (D)
  Luxembourg                        6,638          3,851            426
  Netherlands                     572,564         87,828          8,155
  Norway                            6,496          2,115            208
  Spain                             8,583          3,521            457
  Sweden                           32,944         15,255          2,036
  Switzerland                     985,906         35,942          3,867
  United Kingdom                1,026,276        209,039         18,682
  Other                             5,537            (D)            (D)
Latin America and Other
  Western Hemisphere              235,508         62,517          5,284
  South and Central
    America                        33,739         16,431          1,300
    Brazil                          4,019          1,689            165
    Mexico                         18,770          6,723            (D)
    Panama                            (D)            (D)             46
    Venezuela                         (D)            (D)            (D)
    Other                           1,517            631             96
  Other Western Hemisphere        201,769         46,086          3,984
    Bahamas                         1,199            462             75
    Bermuda                       131,186         31,148          2,264
    Netherlands Antilles              (D)            (D)            (D)
    United Kingdom
      Islands, Caribbean           58,707          7,499            957
    Other                             (D)            (D)            (D)
Africa                              4,838          3,815            162
  South Africa                      3,851          3,390            140
  Other                               987            425             22
Middle East                        26,737         18,671          1,853
  Israel                            5,517          1,226            289
  Kuwait                            1,995          1,342            101
  Lebanon                               7          1,181             64
  Saudi Arabia                     12,167         10,793            776
  United Arab Emirates              3,055          2,929            461
  Other                             2,792          1,200            161
Asia and Pacific                  596,834        194,763         24,247
  Australia                       101,333         20,626          1,807
  China                             1,174            636             71
  Hong Kong                         6,443          4,675            487
  India                               585            167             15
  Japan                           453,391        148,208         20,252
  Korea, Republic of               13,911          6,569          1,019
  Malaysia                          1,582          1,054             64
  New Zealand                         369             63              3
  Singapore                         7,980          4,724            166
  Taiwan                            8,521          6,859            224
  Other                             1,545          1,180            139
United States                      23,326          8,855            677
Addenda:
  European Union (15) (1)       2,875,128        632,587         64,457
  OPEC (2)                         26,632         21,825            (D)

                                         Millions of dollars

                                Sales        Net income    Value added

                                 (4)            (5)            (6)

    All countries               2,136,617         30,580        486,344
Canada                            133,768           -407         36,279
Europe                          1,304,694         24,500        318,778
  Austria                           2,584             12            642
  Belgium                          27,795            671          6,998
  Denmark                          10,491            121          3,014
  Finland                          16,469           -125          3,738
  France                          156,880          2,093         41,175
  Germany                         301,072            756         63,239
  Ireland                          11,475            239          3,569
  Italy                            21,417            114          5,565
  Luxembourg                        2,910             -6            904
  Netherlands                     207,623          8,376         44,281
  Norway                            8,994            -63          1,082
  Spain                             6,379           -325          1,037
  Sweden                           41,535             59         12,163
  Switzerland                     116,077          1,860         34,417
  United Kingdom                  366,464         10,886         95,308
  Other                             6,530           -166          1,646
Latin America and Other
  Western Hemisphere              130,247           -384         37,165
  South and Central
    America                        52,733            246         10,773
    Brazil                          7,552             92            653
    Mexico                         14,967             93          3,014
    Panama                            (D)            (D)            (D)
    Venezuela                         (D)            (D)            (D)
    Other                           3.095             -2            307
  Other Western Hemisphere         77,514           -629         26,392
    Bahamas                           428             70            201
    Bermuda                        59,929           -542         20,800
    Netherlands Antilles            4,980           -276            (D)
    United Kingdom
      Islands, Caribbean           10,765            158          2,395
    Other                           1,414            -39            (D)
Africa                              5,457             45          1,050
  South Africa                      4,997             -2            958
  Other                               460             47             92
Middle East                        35,115            482          8,341
  Israel                            3,881             38            921
  Kuwait                              737             45            230
  Lebanon                             504              6            219
  Saudi Arabia                        (D)            (D)          5,558
  United Arab Emirates                547             58            311
  Other                               (D)            (D)          1,103
Asia and Pacific                  507,521          6,121         79,111
  Australia                        25,990            446          8,209
  China                             1,899            -34            238
  Hong Kong                         5,652            118          1,420
  India                             1,189            -14            159
  Japan                           420,716          6,047         64,025
  Korea, Republic of               33,766            180          2,069
  Malaysia                            776              6            308
  New Zealand                       1,059              5             87
  Singapore                         5,669           -446          1,027
  Taiwan                            9,779           -174          1,350
  Other                             1,027            -14            219
United States                      19,814            223          5,620
Addenda:
  European Union (15) (1)       1,175,478         22,987        282,090
  OPEC (2)                         54,278            918            (D)

                                         Millions of dollars

                                                           U.S. exports
                                                             of goods
                             Compensation    Thousands      shipped by
                             of employees   of employees    affiliates

                                 (7)            (8)            (9)

    All countries                 317,948        5,253.0        150,829
Canada                             23,481          394.1          7,110
Europe                            220,930        3,686.9         76,335
  Austria                             462            8.5            404
  Belgium                           4,011          133.3            919
  Denmark                           2,365           45.8            564
  Finland                           2,781           35.3          1,223
  France                           28,675          451.8         10,621
  Germany                          47,359          673.8         32,306
  Ireland                           2,274           37.1             79
  Italy                             3,995           89.4          1,861
  Luxembourg                          598           14.8             81
  Netherlands                      28,447          502.7          4,960
  Norway                              968           13.6            234
  Spain                               961           21.7            347
  Sweden                            9,320          220.9          3,617
  Switzerland                      30,629          431.1          5,066
  United Kingdom                   57,452          995.8         13,923
  Other                               633           11.2            130
Latin America and Other
  Western Hemisphere               21,339          336.1         12,650
  South and Central
    America                         3,859           68.6          2,611
    Brazil                            345            5.0            (D)
    Mexico                          2,290           48.1            797
    Panama                            (D)              I            (D)
    Venezuela                         (D)              H            (D)
    Other                             235            4.9            110
  Other Western Hemisphere         17,481          267.5         10,039
    Bahamas                            99            2.5              4
    Bermuda                        13,456          211.6          9,933
    Netherlands Antilles              (D)              J             30
    United Kingdom
      Islands, Caribbean            1,681           23.3             49
    Other                             (D)              J             23
Africa                                736            9.4            477
  South Africa                        700            8.8            476
  Other                                36            0.7            (*)
Middle East                         2,364           47.1            715
  Israel                              518           10.1            269
  Kuwait                               53            1.5            (D)
  Lebanon                             116            2.4            (D)
  Saudi Arabia                        728            9.7            (D)
  United Arab Emirates                 86            1.9            (D)
  Other                               863           21.5            104
Asia and Pacific                   45,958          733.2         48,800
  Australia                         4,083           58.8            320
  China                               206            3.0            (D)
  Hong Kong                           593           14.1            245
  India                               137            2.2              9
  Japan                            37,894          599.0         41,364
  Korea, Republic of                  882           12.2          5,239
  Malaysia                            228            4.3            (D)
  New Zealand                          31            0.3            (D)
  Singapore                           846           17.0            (D)
  Taiwan                              931           16.5            802
  Other                               128            5.8             18
United States                       3,139           46.1          4,743
Addenda:
  European Union (15) (1)         188,877        3,234.6         70,913
  OPEC (2)                            (D)              J            696

                                 Millions of dollars

                                              Research
                             U.S. Imports       and
                               of goods     development
                              shipped to    performed by
                              affiliates     affiliates

                                 (10)           (11)

    All countries                 356,659         29,524
Canada                             22,741          1,674
Europe                            144,990         22,255
  Austria                             790             15
  Belgium                             799            113
  Denmark                           1,438            106
  Finland                           5,093            (D)
  France                           15,284          3,691
  Germany                          61,191          5,892
  Ireland                             198            (D)
  Italy                             3,224            234
  Luxembourg                          236            (D)
  Netherlands                      14,329          1,755
  Norway                              912            (D)
  Spain                             1,050             46
  Sweden                            5,805            273
  Switzerland                       8,477          3,325
  United Kingdom                   25.614          5,820
  Other                               553              6
Latin America and Other
  Western Hemisphere               18,814            956
  South and Central
    America                        14,635            (D)
    Brazil                          3,602              0
    Mexico                          2,136             14
    Panama                            (D)            (D)
    Venezuela                         (D)              0
    Other                           1,616            (*)
  Other Western Hemisphere          4,179            (D)
    Bahamas                             9            (*)
    Bermuda                         2,978            720
    Netherlands Antilles               21            (D)
    United Kingdom
      Islands, Caribbean            1,154            (D)
    Other                              18            (*)
Africa                                324             31
  South Africa                        (D)             31
  Other                               (D)              0
Middle East                         5,285            (D)
  Israel                              (D)             90
  Kuwait                              (*)              0
  Lebanon                               2            (*)
  Saudi Arabia                        (D)            (D)
  United Arab Emirates                 34              0
  Other                                89             75
Asia and Pacific                  161,123          3,697
  Australia                           524             45
  China                               243              7
  Hong Kong                           913            (D)
  India                                23            (*)
  Japan                           133,695          3,407
  Korea, Republic of               22,577            (D)
  Malaysia                             20            (D)
  New Zealand                         809              1
  Singapore                           449             19
  Taiwan                            1,620            101
  Other                               250              1
United States                       3,383            (D)
Addenda:
  European Union (15) (1)         135,058         18,882
  OPEC (2)                            (D)            (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, 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 preliminary.