C 54.23: BE - 15(52)/2003
º – / C.
OMB No. 0608-0034: ApproVaſexpires 10/31/2006
FORM BE-15(EZ)
(REV. 1/2004)
U.S. DEPARTMENT OF COMMERCE
BUREAU OF ECONOMIC ANALYSIS
ANNUAL SURVEY OF
FOREIGN DIRECT INVESTMENT IN
THE UNITED STATES – 2003
(EZ FORM)
BEA USE ONLY Control number
Public reporting burden for this EZ form is estimated to vary from 1 to 3
hours per response, with an average of 1.5 hours per response,
including the time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing
and reviewing the collection of information. Send comments regarding
this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Director, Bureau of
Economic Analysis (BE-1), U.S. Department of Commerce, Washington,
DC 20230, and to the Office of Management and Budget, Paperwork
Reduction Project 0608-0034, Washington, DC 20503.
DUE DATE: MAY 31, 2004
ELECTRONIC See our web site at www.bea.gov/astar/
FILING for details
OR
MAIL U.S. Department of Commerce
REPORTS Bureau of Economic Analysis
TO BE-49(A)
Washington, DC 20230
OR
DELIVER U.S. Department of Commerce
REPORTS Bureau of Economic Analysis, BE-49(A)
To Shipping and Receiving Section, M100
1441 L Street, NW
Washington, DC 20005
PENALTIES – Whoever fails to report shall be subject to a civil
penalty of not less than $2,500, and not more than $25,000, and to
injunctive relief commanding such person to comply, or both.
Whoever willfully fails to report shall be fined not more than $10,000
and, if an individual, may be imprisoned for not more than one year,
or both. See additional information on page 4.
CONFIDENTIALITY – The Act provides that your report to this Bureau
is CONFIDENTIAL and may be used only for analytical or statistical
purposes. Without your prior written permission, the information filed in
your report CANNOT be presented in a manner that allows it to be
individually identified. Your report CANNOT be used for purposes of
taxation, investigation, or regulation. Copies retained in your files are
immune from legal process.
Part TIDENTIFICATION OF U.S. AFFILIATE
1. Name and address of U.S. affiliate – If there are any changes
IMPORTANT
Complete Form BE-15(EZ) ONLY if you have
been instructed in writing to do so by BEA.
See reporting requirements on page 4.
Read the Instructions, starting on page 4, before
completing this form. The instructions below are only a
brief summary.
Definitions of key terms used in this report are found
starting on page 4.
Insurance and real estate companies - See
Special Instructions on page 7.
Additional instructions by line item are at the back
of this form starting with Section IV of the instructions on
page 5.
A. U.S. AFFILIATE'S 2003 FISCAL YEAR – The
affiliate's financial reporting year that had an ending
date in calendar year 2003.
B. CONSOLIDATED REPORTING – A U.S. affiliate
must file on a fully consolidated domestic U.S.
basis, including in the consolidation all non-bank
U.S. affiliates in which it directly or indirectly owns
more than 50 percent of the outstanding voting
interest. The consolidation rules are found in
instruction 2 on page 5.
C. ASSISTANCE – Email:bel2/15Ghea.gov;
Telephone: (202) 606-5577; FAX: (202) 606-5319
D. ROUNDING - Report currency amounts in U.S.
dollars rounded to thousands (omitting 000). Do not
enter amounts in the shaded portions of
each line.
Example – If amount is $1,334,891.00 report as
Bil. Mil. Thous, Dols.
1 335
in the name or address, make the changes directly on the label. If no
label has been affixed, enter the name and address in full.
Name of U.S. affiliate
1002 || 0
c/o (care of)
1010 || 0
Street Or P.O. Box
1 OO3 || 0
City and State
1004 || 0
ZIP Code Foreign Postal Code
1005 || O O
OR
2. Consolidated reporting by the U.S. affiliate – The
consolidation rules are found in instruction 2 on page 5.
ls more than 50 percent of the voting interest in this U.S.
affiliate owned by another U.S. affiliate of your foreign
parent?
1400 't ||Yes – if "Yes" – Contact BEA for guidance.
'2D'No - if "No" - Complete this report in accordance with
the consolidation rules in instruction 2 on page 5.
3. Enter Employer Identification Number(s) used by the U.S.
affiliate to file income and payroll taxes.
Primary Other
1006 || 1 2
4. REPORTING PERIOD – Reporting period instructions
are found in instruction 4 starting on page 5.
Month] Day Year
This U.S. affiliate's 2003 fiscal year 1007 || 1
ended in Calendar year 2003 on >
Example – If the fiscal year ended on March 31,
report for the 12 month period ended March 31, 2003.
5. Did the U.S. business enterprise become a U.S. affiliate
MANDATORY - This survey is being conducted
pursuant to the International Investment and Trade in
Services Survey Act (P.L. 94-472, 90 Stat. 2059, 22
U.S.C. 3101-3108, as amended — hereinafter "the Act")
and the filing of reports is mandatory pursuant to Section
5(b)(2) of the Act (22 U.S.C. 3104).
during its fiscal year that ended in calendar year 2003?
1
1008 1 [T] Yes If "Yes" – Enter date U.S. Monthſ Day Year
1 business enterprise 1009 || 1
2[...] No became a U.S. affiliate
and see instruction 5 On
page 6.
PERSON TO CONSULT CONCERNING QUESTIONS ABOUT THIS
REPORT – Enter name and address
CERTIFICATION – The undersigned official certifies that this report has been
prepared in accordance with the applicable instructions, is complete, and is
Name f OOO ()
substantially accurate except that, in accordance with instruction Ill.D. on page 5,
Address
estimates may have been provided.
Authorized official's signature Date
TELEPHONE 1901 || 0 Area code Number Extension Print or type name and title
NUMBER
FAX NUMBER 0999 || 0 Area code Number Telephone number FAX number
May we use e-mail to correspond with you to discuss questions relating
to this Form BE-15(EZ), including questions that may contain information 1927
about your company that you may consider confidential? (Note that
electronic mail is not inherently confidential; we will treat information we
receive as confidential, but your e-mail is not necessarily secure against
interception by a third party.)
1 E-mail address
1 [ ] Yes — If yes, please O
provide your
e-mail address. –-
1
2[ ] No 1 O28
PLEASE CONTINUE ON REVERSE SIDE

IDENTIFICATION OF U.S. AFFILIATE – Continued
Ownership – Enter percent of ownership in this U.S.
affiliate, to a tenth of one percent, based on voting stock if an
incorporated affiliate or an equivalent interest if an unincorporated
affiliate. "Voting interest" is defined in instruction 6a on page 6.
Ownership held directly by all foreign parents of
this affiliate – Give name of foreign parent (if more than 1,
REPORTING PERIOD
Country of incorporation
or organization, if a
business enterprise, or
residence, if an
individual. For
individuals, See
instruction 6b on page 6.
Close FY 2003
Close FY 2002
BEA
USE
ONLY
more than 1, continue on a separate sheet).
continue on a separate sheet). (1) (2) (3)
3011 || 0 1 2 3
6. 1017 . 9% 9%
Ownership held indirectly by all foreign parents of Country of
this U.S. affiliate through another U.S. affiliate – Give foreign parent of U.S.
name of higher tier U.S. affiliate that owns this U.S. affiliate (if affiliate
3023 || 1
7. 1 O63 . 9% %
8. Enter the name and industry code of the foreign parent. Obtain the industry code from
the list on page 3. If more than one foreign parent, list each and its industry code on a separate
sheet. The foreign parent industry code is based on the primary activity of the single entity named
as the foreign parent. DO NOT base the code on a world-wide consolidation. Enter foreign parent
Enter name of Foreign parent if not already entered in item 6 above. industry code
O l
301 1 30:18
9. For each foreign parent, furnish the name, country, and industry code of the ultimate beneficial owner (UBO). (See
instruction II.Q. on page 5 for the definition of UBO.) If the UBO is an individual, a name need not be given in 9b, but the
country of residence of the UBO must be given in 9C. If there is more than one foreign parent, list each on a separate sheet and
give the name of its UBO, and the UBO's country and industry codes.
9a. Is each foreign parent also the ultimate beneficial owner?
* '1 DYes-Skip to 9d.
'2D No-Continue with 9b.
9b. Enter name of UBO of foreign parent if foreign parent is not also the UBO. Identifying the UBO as "bearer shares" is not an
acceptable response.
3021 || 0
9c. Enter country of UBO if foreign parent is not also the UBO. For individuals, see instruction 6b on page 6. BEA USE ONLY
3022 || 1
9d. Enter the industry code of the (UBO) from the list of codes on page 3. Note – UBO industry code is based
on UBO's world-wide consolidated sales. Code "14" (holding company) is normally NOT a valid UBO industry code.
Page 2
Part II selected Financial And operating DATA of U.S. AFFLIATE Amount
(1)
Bil. Mil. Thous. IDols.
1 |
10. Total assets 2109 || $ |
11. Total liabilities 1 1 |
2114 - || 3 2114 || $
Please check box if total liabilities are zero.
12. Total Sales – Gross sales minus returns, allowances, and discounts; or gross operating 2 |
revenues. Exclude sales or consumption taxes levied directly on the consumer and excise taxes |
levied directly on manufacturers, wholesalers, and retailers. Include revenues generated during the |
year from the operations of a discontinued business segment. However, EXCLUDE gains or losses |
on DISPOSALS of discontinued operations. 1174 $ L
13a. Major product(s) or service(s) of fully consolidated domestic U.S. affiliate – Briefly describe the
major product(s) and/or service(s) of the U.S. affiliate. If a product, also state what is done to it, i.e., whether it is
mined, manufactured, sold at wholesale, transported, packaged, etc. (For example, "manufacture widgets.")
1163 O
13b. Industry of this affiliate – Enter the 4-digit international surveys industry (ISI) code of the 1 |S| Code
industry with the largest sales or gross operating revenues. For a full explanation of each
code see the Guide to Industry and Foreign Trade Classifications for International Surveys, 2002. 1164
Amount
(1)
Bil. Mil. Thous, Dols.
1 T
14. Net income (loss) – After provision for U.S. Federal, State, and local income taxes. 2159 $ |
Number
15a. Number of employees at close of FY 2003 – Reporting employment (including how to report 3
when employment is subject to unusual variations) is discussed in instruction 15a on page 6. 2700
Amount
(1)
Bil. Mil. Thous.Dols.
15b. Total employee compensation for FY 2003 – Employee compensation is defined in 1 |
instruction 15b on page 6. 2253 $ |
16. Gross book value (at historical cost) of all land and other property, plant, and 5
equipment, at the close of the fiscal year that ended in calendar year 2003. 2799 || $ t
|
17. Research and development (R&D) expenditures for R&D performed BY the U.S. 1 |
affiliate – R&D is defined in instruction 17 on Bège S. 2403 || $ 1.
1 I-
BEA USE ONLY |
1299 I
FORM BE-15(EZ) (REV. 1/2004)
FOREIGN PARENT AND UBO INDUSTRY CODES
Note: "ISI codes" are International Surveys Industry codes, as given in the Guide to
Industry and Foreign Trade Classifications for International Surveys, 2002.
O1
O2
O3
O4
O5
Government and government-owned or -sponsored enterprise, or quasi-government organization
Or agency
Pension fund — Government run
Pension fund — Privately run
Estate, trust, or nonprofit organization (that part of ISI code 5252 that is estates and trusts)
individual
Private business enterprise, investment organization, or group engaged in:
O6
O7
O8
O9
1O
11
12
13
14
15
16
17
18
19
Insurance (ISI codes 5242, 52.43, 5249)
Agriculture, forestry, fishing and hunting (ISI codes 1110–1140)
Mining (ISI codes 21 11–2127)
Construction (ISI codes 2360—2380)
Transportation and warehousing (ISI codes 4810–4939)
Utilities (|S| codes 221 1–2213)
Wholesale and retail trade (ISI codes 4231–4251 and 4410–4540)
Banking, including bank holding companies (ISI codes 5221 and 5229)
Holding companies, excluding bank holding companies (ISI codes 5512 and 5513)
Other finance (ISI codes 5223, 5224, 5231, 5238, that part of ISI code 5252 that is not estates and
trusts, and |S| code 5331)
Real estate (ISI code 5310)
Information (|S| codes 51 11–5191)
Professional, scientific, and technical services (ISI codes 5411–5419)
Other services (ISI codes 1150, 2132, 2133, 5321, 5329, and 5611–8130)
Manufacturing, including fabricating, assembling, and processing of goods:
20
21
22
23
24
25
26
27
28
29
30
31
32
Food (ISI codes 3111–3119)
Beverages and tobacco products (ISI codes 3121 and 3122)
Pharmaceuticals and medicine (ISI code 3254)
Other chemicals (ISI codes 3251–3259, except 3254)
Nonmetallic mineral products (ISI codes 3271–3279)
Primary and fabricated metal products (ISI codes 3311–3329)
Computer and electronic products (ISI codes 3341–3346)
Machinery manufacturing (ISI codes 3331–3339)
Electrical equipment, appliances and components (ISI codes 3351–3359)
Motor vehicles and parts (ISI codes 3361—3363)
Other transportation equipment (ISI codes 3364–3369)
Other manufacturing (ISI codes 3130–3231, 3261, 3262, 3370–3399)
Petroleum manufacturing, including integrated petroleum and petroleum refining without
extraction (ISI codes 3242–3244)
1200
1201
1202
1203
BEA USE ONLY
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
FORM BE-15(EZ) (REV. 1/2004)
Page 3
ANNUAL SURVEY OF
FOREIGN DIRECT INVESTMENT IN THE UNITED STATES – 2003
BE-15(EZ) INSTRUCTIONS
NOTE: Instructions in section IV are cross referenced by number to the items located on pages 1 and 2 of this form.
Authority — This survey is being conducted pursuant to the
International Investment and Trade in Services Survey Act (P.L.
94-472., 90 Stat. 2059, 22 U.S.C. 3101-3108, as amended, hereinafter
"the Act"), and the filing of reports is MANDATORY pursuant to
Section 5(b)(2) of the Act (22 U.S.C.3104).
The publication in the Federal Register of the notice implementing
this survey is considered legal notice to covered U.S. business
enterprises of their obligation to report. Therefore, a response is
required from persons subject to the reporting requirements of the
BE-15 survey, whether or not they are contacted by BEA. Also, a
person contacted by BEA concerning their being subject to reporting,
either by sending them a report form or by written inquiry, must
respond in writing pursuant to section 806.4 of 15 CFR, Chapter VIII,
or must respond electronically using BEA's Automated Survey
Transmission and Retrieval (ASTAR) system. This may be
accomplished by completing and submitting Form BE-15(EZ),
BE-15(LF), BE-15(SF), or BE-15 Supplement C by May 31, 2004,
whichever is applicable.
Penalties — in addition to the penalties cited on page 1, any officer,
director, employee, or agent of any corporation who knowingly
participates in such violations upon conviction, may be punished by a
like fine, imprisonment or both (22 U.S.C. 3105).
Notwithstanding any other provision of the law, no person is required
to respond to, nor shall any person be subject to a penalty for failure
to comply with, a collection of information subject to the requirements
of the Paperwork Reduction Act, unless that collection of information
displays a currently valid OMB Control Number. The control number
for this survey is at the top of page 1 of the form.
I. REPORTING REQUIREMENTS
Who must report – Complete Form BE-15(EZ) ONLY if you
have been instructed in writing to do so by BEA. If none of
the items – Total assets, Sales or gross operating revenues, or Net
income (loss) – for the U.S. affiliate (not just the foreign parent's
share) exceed $30 million at the end of, or for, its 2003 fiscal year,
complete Form BE-15 Supplement C. Following an initial filing, the
BE-15 Supplement C is not required annually from those nonbank
U.S. affiliates that meet the stated exemption criteria from year to
year.
A BE-15 report is required for each nonbank U.S. affiliate, i.e., for
each nonbank U.S. business enterprise in which a foreign person
owned or controlled, directly or indirectly, 10 percent or more of the
voting securities if an incorporated U.S. business enterprise, or an
equivalent interest if an unincorporated U.S. business enterprise, at
the end of the business enterprise's fiscal year that ended in calendar
year 2003.
Foreign ownership interest — All direct and indirect lines of
ownership held by a foreign person in a given U.S. business
enterprise must be summed to determine if the enterprise is a U.S.
affiliate of the foreign person for purposes of reporting.
Indirect ownership interest in a U.S. business enterprise is
the product of the direct ownership percentage of the foreign parent in
the first U.S. business enterprise in the ownership chain multiplied by
that first enterprise's direct ownership percentage in the second U.S.
business enterprise multiplied by each succeeding direct ownership
percentage of each other intervening U.S. business enterprise in the
ownership chain between the foreign parent and the given U.S.
business enterprise.
Example: In the diagram below, foreign person A owns 100% of the
voting stock of U.S. affiliate B; U.S. affiliate B owns 50% of the voting
stock of U.S. affiliate C; and U.S. affiliate C owns 25% of the voting
stock of U.S. affiliate D. Therefore, U.S. affiliate B is 100% directly
owned by foreign person A, U.S. affiliate C is 50% indirectly owned by
foreign person A; and U.S. affiliate D is 12.5% indirectly owned by
foreign person A.
Calculation of Foreign Ownership
Foreign |Foreign person A
X--- m^ - sº- - - - - - - - - - ? - - - - - -ºº-ºº: º gº-gº - - - - -
U.S. affiliate B
100% directly owned
by foreign person A
50%
U.S. affiliate C
100% x 50% = 50% indirectly
owned by foreign person A
as:
U.S. affiliate D
100% x 50% X 25% = 12.5%
indirectly owned by foreign person A
A report is required even though the foreign person's voting interest in
the U.S. business enterprise may have been established or acquired
during the reporting period.
Beneficial, not record, ownership is the basis of the reporting criteria.
Voting securities, voting stock, and voting interest all have the same
general meaning and are used interchangeably throughout these
instructions and the report forms.
Real Estate — See instruction V.C. on page 7 for special reporting
requirements.
Airline and ship operators — U.S. stations, ticket offices, and
terminal and port facilities of foreign airlines and ship operators that
provide services ONLY to the foreign airlines' and ship operators' own
operation are not required to report. Reports are required when such
enterprises produce significant revenues from Services provided to
unaffiliated persons.
II. DEFINITIONS
A. United States, when used in a geographic sense, means the
Several States, the District of Columbia, the Commonwealth of
Puerto Rico, and all territories and possessions of the United States.
B. Foreign, when used in a gº sense, means that which is
situated outside the United States or which belongs to or is
characteristic of a country other than the United States.
C. Person, means any individual, branch, partnership, association,
associated group, estate, trust, corporation, or other organization
(whether or not organized under the laws of any State), and any
government (including a foreign government, the U.S. Government, a
State or local government, and any agency, Corporation, financial
institution, or other entity or instrumentality thereof, including a
government sponsored agency).
D. Associated group means two or more persons who, by the
appearance of their actions, by agreement, or by an understanding,
exercise their voting privileges in a concerted manner to influence
the management of a business enterprise. The following are deemed
to be associated groups:
1. Members of the same family.
2. A business enterprise and one or more of its officers or directors.
3. Members of a syndicate or joint venture.
4. A corporation and its domestic subsidiaries.
E. Foreign person means any person resident outside the United
States or subject to the jurisdiction of a country other than the United
States.
F. Direct investment means the ownership or control, directly or
indirectly, by one person of 10 per centum or more of the voting
securities of an incorporated business enterprise or an equivalent
interest in an unincorporated business enterprise.
G. Foreign direct investment in the United States means the
ownership or control, directly or indirectly, by one foreign person of
10 per centum or more of the voting securities of an incorporated
U.S. business enterprise or an equivalent interest in an
unincorporated U.S. business enterprise, including a branch.
H. Business enterprise means any organization, association,
branch, or venture which exists for profit making purposes or to
otherwise secure economic advantage, and any ownership of any
real estate.
l. Branch means the operations or activities conducted by a person
in a different location in its own name rather than through an
incorporated entity.
J. Affiliate means a business enterprise located in one country
which is directly or indirectly owned or controlled by a person of
another country to the extent of 10 per centum or more of its voting
securities for an incorporated business enterprise or an equivalent
interest for an unincorporated business enterprise, including a
branch.
K. U.S. affiliate means an affiliate located in the United States in
which a foreign person has a direct investment.
1. Majority-owned U.S. affiliate means a U.S. affiliate in which
the combined direct and indirect voting interest of all foreign
parents of the U.S. affiliate exceeds 50 percent.
2. Minority-owned U.S. affiliate means a U.S. affiliate in which
the combined direct and indirect voting interest of all foreign
parents of the U.S. affiliate is 50 percent or less.

L. Foreign parent means the foreign person, or the first person
outside the United States in a foreign chain of ownership, which has
direct investment in a U.S. business enterprise, including a branch.
M. Affiliated foreign group means (i) the foreign parent, (ii) any
foreign person proceeding up the foreign parent's ownership chain,
which owns more than 50 per centum of the person below it up to
and including that person which is not owned more than 50 per
centum by another foreign person, and (iii) any foreign person
proceeding down the ownership chain(s) of each of these members,
which is owned more than 50 per centum by the person above it.
N. Foreign affiliate of a foreign parent means, with reference to a
given U.S. affiliate, any member of the affiliated foreign group owning
the U.S. affiliate that is not a foreign parent of the U.S. affiliate.
O. U.S. corporation means a business enterprise incorporated in the
United States.
P. Intermediary means any agent, nominee, manager, custodian,
trust, or any person acting in a similar capacity.
Page 4
BE-15(EZ) (REV. 1/2004)
II. DEFINITIONS - Continued
Q. Ultimate beneficial owner (UBO) is that person, proceeding up
the ownership chain beginning with and including the foreign parent,
that is not more than 50 percent owned or controlled by another
person. (A person who creates a trust, proxy, power of attorney,
arrangement, or device with the purpose or effect of divesting such
owner of the ownership of an equity interest as part of a plan or
scheme to avoid reporting information, is deemed to be the owner of
the equity interest.) Note: Stockholders of a closely or privately held
corporation are normally considered to be an associated group and
may be a UBO.
R. Banking covers business enterprises engaged in deposit banking or
closely related functions, including commercial banks, Edge Act
corporations engaged in international or foreign banking, foreign
branches and agencies of U.S. banks whether or not they accept
deposits abroad, U.S. branches and agencies of foreign banks
whether or not they accept domestic deposits, savings and loans,
savings banks, and bank holding companies.
S. Lease is an arrangement conveying the right to use property, plant,
or equipment, (i.e., land and/or depreciable assets), usually for a
stated period of time.
1. Capital lease — A long term lease under which a sale of the
asset is recognized at the inception of the lease. These may be
shown as lease contracts or accounts receivable on the lessor's
books. The assets would not be considered as owned by the
lessor.
2. Operating lease — Generally, a lease with a term which is less
than the useful life of the asset and a transfer of ownership is not
contemplated.
T. U.S. affiliate's 2003 fiscal year is the affiliate's financial
reporting year that had an ending date in calendar year 2003.
III. GENERAL INSTRUCTIONS
A. Accounting methods and records — Unless otherwise
specified in the instructions, follow generally accepted U.S.
accounting principles when preparing the BE-15 report.
Corporations should generally use the same methods and records
that are used to generate reports to stockholders except where the
instructions state otherwise. Prepare reports for unincorporated
U.S. business enterprises on an equivalent basis.
B. Changes in the reporting entity – DO NOT restate close
fiscal year 2002 balances for changes in the consolidated reporting
entity that occurred during fiscal year 2003. The close fiscal year
2002 balances should represent the reporting entity as it existed at
the close of fiscal year 2002.
C. Required information not available — Make all reasonable
efforts to obtain the information required for reporting. Answer
every question except where specifically exempt. Indicate when
only partial information is available.
D. Estimates — If actual figures are not available, please provide
estimates and label them as such. When items cannot be fully
subdivided as required, provide totals and an estimated breakdown
of the totals. Information necessary to complete some of the items
on Form BE-15(EZ) may not be available from a company's
customary accounting records. Precise answers for these items
may present the respondent with a substantial burden beyond what
is intended by BEA. Therefore, the answers may be reasonable
estimates based upon the informed judgement of persons in the
responding organization, sampling techniques, prorations based on
related data, etc. However, the estimating procedures used should
be consistently applied on all BEA surveys.
E. Space on form insufficient — When space on a form is
insufficient to permit a full answer to any item, provide the
required information on supplementary sheets, appropriately
labeled and referenced to the item number on the form.
IV. INSTRUCTIONS FOR SPECIFIC SECTIONS
OF THE REPORT FORM
NOTE: Instructions in section IV are cross referenced by number to the
items located on pages 1 and 2 of this form.
PART I – IDENTIFICATION OF U.S. AFFILIATE
2. Consolidation Rules
Consolidated reporting by the U.S. affiliate — A U.S.
affiliate must file on a fully consolidated domestic U.S. basis,
including in the full consolidation all nonbank U.S. business
enterprises in which it directly or indirectly owns more than 50
percent of the outstanding voting interest. The fully consolidated
entity is considered one U.S. affiliate.
A foreign person holding real estate investments that are reportable
on the BE-15 must aggregate all such holdings. See Instruction V.C.
on page 7 for details.
Do not prepare your BE-15 report using the proportionate consolida-
tion method. Except as noted in b. through e. below, consolidate all
majority-owned U.S. affiliates into your BE-15 report.
Unless the exceptions discussed in items a, b, c, or e
below apply, any deviation from these consolidation
rules must be approved in writing each year by BEA.
Exceptions to the consolidation reporting – Note: If a U.S.
affiliate is not consolidated into its U.S. parent's BE-15 report, then it
must be listed on the Supplement B of its parent's BE-15 report
and must file its own Form BE-15(LF), BE-15(SF), or BE-15
Supplement C.
BE-15(EZ) (REV. 1/2004)
a. DO NOT CONSOLIDATE FOREIGN SUBSIDIARIES,
C
BRANCHES, OPERATIONS, OR INVESTMENTS NO
MATTER WHAT THE PERCENTAGE OWNERSHIP. Include
foreign holdings owned 20 percent or more (including those that are
majority-owned) using the equity method of accounting. DO NOT
eliminate intercompany accounts for investments reported using the
equity method. You may report immaterial foreign investments using
the cost method of accounting if this treatment is consistent with your
normal reporting practice.
Report foreign holdings owned less than 20 percent using the
cost method of accounting.
. Do not consolidate banking activities. If the nonbank U.S.
affiliate reporting on Form BE-15(EZ) has a direct or indirect
ownership interest in a bank, bank holding company (BHC), or any
other banking activity, such as a U.S. wholesale or limited purpose
bank, DO NOT consolidate those banking activities into the Form
BE-15(EZ). Banks are not required to file a separate BE-15 report.
Include on Form BE-15(EZ) any banking operations owned 20
percent or more (including those that are majority-owned) using
the equity method of accounting. DO NOT eliminate intercompany
accounts for banking operations. Report immaterial banking
operations and any banking operations owned less than 20
percent using the cost method of accounting if this treatment is
consistent with your normal reporting practice.
For BE-15 reporting purposes, treat Financial Holding
Companies in the same manner as you would treat a BHC.
Special consolidation rules apply to U.S. affiliates that are
limited partnerships or that have an ownership interest in
a U.S. limited partnership. These rules can be found on our web
Site at www.bea.gov/beaſsurveys/fdiusfaq.htm#1. Scroll to the
heading "BE-15-Annual Survey Report --" and click on the question
"How do I report if I am a limited partnership or have an ownership
interest in a limited partnership?"
. You may file a separate BE-15 report for a U.S. affiliate that is owned
more than 50 percent by another U.S. affiliate if the "owned" U.S.
affiliate is not normally fully consolidated because control by the
"owning" U.S. affiliate is temporary. You must submit a request
in writing EACH YEAR to BEA in order to receive
permission to file separately for any U.S. affiliate that
should otherwise be consolidated. Report such affiliates, if
not consolidated, on Form BE-15(EZ) using the equity method of
accounting. DO NOT eliminate intercompany accounts for such
affiliates not consolidated. In accordance with Financial Accounting
Standards Board statement 94, consolidation of majority-owned
subsidiaries is required even if their operations are not homogeneous
with those of the U.S. affiliate that owns them.
. A U.S. affiliate in which a direct ownership interest and an indirect
ownership interest are held by different foreign persons should
not be fully consolidated into another U.S. affiliate, but must
complete and file its own BE-15 report. (See diagram below.)

|Foreign person B |Foreign person A |
Foreign
us I Toº
30% | U.S. affiliate X
60%
| U.S. affiliate Y
U.S. affiliate Y may not be fully consolidated into U.S.
affiliate X because of the 30 percent direct ownership by
foreign person B.
If this exception applies, reflect the indirect ownership interest,
even if more than 50 percent, on the owning U.S. affiliate's BE-15
report on an equity basis. For example, using the situation shown
in the diagram above, U.S. affiliate X must treat its 60 percent
ownership interest in U.S. affiliate Y as an equity investment.
. Reporting period — The report covers the U.S. affiliate's 2003
fiscal year. The affiliate's 2003 fiscal year is defined as the
affiliate's financial reporting year that had an ending date in
calendar year 2003.
Special Circumstances:
a. 52/53 week fiscal year — Affiliates having a "52/53
week" fiscal year that ends within the first week of January
2004 are considered to have a 2003 fiscal year and should
report December 31, 2003 as their 2003 fiscal year end.
b. U.S. affiliates without a financial reporting year —
If a U.S. affiliate does not have a financial reporting year, its
fiscal year is deemed to be the same as calendar year 2003.
c. Change in fiscal year
(1) New fiscal year ends in calendar year 2003 — A
U.S. affiliate that changed the ending date of its financial
reporting year should file a 2003 BE-15 report that
covers the 12 month period prior to the new fiscal
year end date. The following example illustrates the
reporting requirements.
Example 1: U.S. affiliate A had a June 30, 2002 fiscal
year º date but changed its 2003 fiscal year end date to
March 31. Affiliate A should file a 2003 BE-15 report
covering the 12 month period from April 1, 2002 to
March 31, 2003.
Page 5
IV. INSTRUCTIONS FOR SPECIFIC SECTIONS
OF THE REPORT FORM – Continued
(2) No fiscal year ending in calendar year 2003 —
If a change in fiscal year results in a U.S. affiliate not
having a fiscal year that ended in calendar 2003, the
affiliate should file a 2003 BE-15 report that
covers 12 months. The following example illustrates
the reporting requirements.
ºple 2: U.S. affiliate B had a December 31, 2002 fiscal
year end date but changed its next fiscal year end date to
March 31. Instead of having a short fiscal year ending in
2003, affiliate B decides to have a 15 month fiscal year
running from January 1, 2003 to March 31, 2004. Affiliate B
should file a 2003 BE-15 report covering a 12 month period
ending in calendar year 2003, such as the period from
April 1, 2002 to March 31, 2003.
For 2004, assuming no further changes in the fiscal year
end date occur, affiliate B should file a BE-15 report
covering the 12 month period from April 1, 2003 to
March 31, 2004.
5. Reporting requirements for a U.S. business enterprise
that became a U.S. affiliate during fiscal year 2003 —
a. A U.S. business enterprise that was newl
established in fiscal year 2003 should file a report for the
period starting with the establishment date up to, and ending
on, the last day of its fiscal year that ended in calendar year
2003. DO NOT estimate amounts for a full year of operations if
the first fiscal year is less than 12 months.
b. A U.S. business enterprise existing before fiscal year
2003 that became a U.S. affiliate in fiscal year 2003
should file a report covering a full 12 months of operations.
6a. Voting interest and Equity interest
(1) Voting interest — is the percent of ownership in the voting
equity of the U.S. affiliate. Voting equity consists of ownership
interests that have a say in the management of the company.
Examples of voting equity include capital stock that has voting
rights, and a general partner's interest in a partnership.
(2) Equity interest — is the percent of ownership in the total
equity (voting and nonvoting) of the U.S. affiliate. Nonvoting
equity consists of ownership interests that do not have a say in
the management of the company. An example of nonvoting
equity is preferred stock that has no voting rights. Another
example is a limited partner's interest in a limited partnership.
Voting interest and equity interest are not always
equal. For example, an owner can have a 100 percent voting
interest in a U.S. affiliate but own less than 100 percent of the
affiliate's total equity. This situation is illustrated in the following
example.
Example: U.S. affiliate A has two classes of Stock, Common Stock
and #. Stock. There are 50 shares of Common Stock
outstanding. Each common share is entitled to one vote and has
an ownership interest in 1 percent of the total owners' equity
amount. There are 50 shares of preferred stock outstanding. Each
preferred share has an ownership interest in 1 percent of the total
owners' equity amount but has no voting rights. Foreign parent B
Owns all 50 shares of the Common Stock. U.S. investors own all 50
shares of the preferred stock. Because foreign parent B owns all of
the voting stock, foreign parent B has a 100 percent voting interest
in U.S. affiliate A. However, because all 50 of the nonvoting
preferred shares are owned by U.S. investors, foreign parent B has
only a 50 percent interest in the owners' equity amount of U.S.
affiliate A.
6b. Determining place of residence and country of
jurisdiction of individuals — An individual is considered a
resident of, and subject to the jurisdiction of, the country in
which physically located. The following guidelines apply to
individuals who do not reside in their country of citizenship.
(1) Individuals who reside, or expect to reside, outside their
country of citizenship for less than one year are considered to
be residents of their country of citizenship.
(2) Individuals who reside, or expect to reside, outside their
country of citizenship for one year or more are considered to
be residents of the country in which they are residing, except
as provided in the next paragraph.
(3) If an owner or employee of a business enterprise resides
outside the country of location of the enterprise for one year or
more for the purpose of furthering the business of the
enterprise, and the country of the business enterprise is the
country of citizenship of the owner or employee, then the
owner or employee is considered a resident of the country of
citizenship, provided there is the intent to return to the country
PART II – SELECTED FINANCIAL AND OPERATING DATA
OF U.S. AFFILIATE
15a. Number of employees at close of FY 2003 —
15b.
17.
Employment is the number of full-time and part-time employees
on the payroll at the end of FY 2003, excluding contract workers
and other workers not carried on the payroll of the U.S. affiliate.
A count taken during, rather than at the end of, FY 2003 may be
used provided it is a reasonable estimate for the end of FY 2003
number. If employment at the end of FY 2003, or the count taken
at some other time during FY 2003, was unusually high or low
because of temporary factors (e.g., a strike), give the number of
employees that reflects normal operations. If the business
enterprise's activity involves large seasonal variations, give the
average number of employees for FY 2003. If given, the average
should be the average for FY 2003 of the number of persons on
the payroll at the end of each payroll period, month, or quarter. If
precise figures are not available, give your best estimate.
Total employee compensation — Base compensation
on payroll records. Employee compensation must cover
compensation charged as an expense on the income
statement, charged to inventories, or capitalized during the
reporting period. Exclude employee compensation related to
activities of a prior period, such as compensation capitalized or
charged to inventories in prior periods. Employee compensation
consists of:
(1) Wages and salaries — are the gross earnings of all
employees before deduction of employees' payroll
withholding taxes, social insurance contributions, group
insurance premiums, union dues, etc. Include time and
piece rate payments, cost of living adjustments, overtime
pay and shift differentials, bonuses, profit sharing
amounts, and commissions. Exclude commissions paid
to persons who are not employees.
Wages and salaries include direct payments by employers
for vacations, sick leave, severance (redundancy) pay, etc.
Include employer contributions to benefit funds. Exclude
payments made by, or on behalf of, benefit funds rather
than by the employer.
Wages and salaries include in-kind payments, valued at their
cost, that are clearly and primarily of benefit to the
employees as consumers. Exclude expenditures that
benefit employers as well as employees, such as
expenditures for plant facilities, employee training programs,
and reimbursement for business expenses.
(2) Employee benefit plans — are employer expenditures for
all employee benefit plans, including those required by
government statute, those resulting from a collective-bargaining
contract, or those that are voluntary. Employee benefit plans
include Social Security and other retirement plans, life and
disability insurance, guaranteed sick pay programs, workers'
compensation insurance, medical insurance, family allowances,
unemployment insurance, severance pay funds, etc. If plans
are financed jointly by the employer and the employee, include
only the contributions of the employer.
Research and development expenditures — Report all
research and development (R&D) performed BY the U.S. affiliate
for its own account or for others, including the foreign parent and
foreign affiliates of the foreign parents. Exclude the cost of all
R&D funded by the U.S. affiliate but performed by others.
R&D includes basic and applied research in the sciences and
engineering. It also includes design and development of new
products and processes, and enhancement of existing products
and processes.
R&D includes activities carried on by persons trained, either
formally or by experience, in the physical Sciences such as
chemistry and physics, the biological sciences such as medicine,
and engineering and computer science. R&D includes these
activities if the purpose is to do one or more of the following things:
a. Pursue a planned search for new knowledge, whether or not
the search has reference to a specific application. (Basic
Research);
b. Apply existing knowledge to problems involved in the
creation of a new product or process, including work
required to evaluate possible uses. (Applied research); or
c. Apply existing knowledge to problems involved in the
improvement of a present product or process.
(Development)
R&D includes the activities described above whether assigned
to separate R&D organizational units of the company or carried
out by company laboratories and technical groups not a part of
an R&D organization.
of citizenship within a reasonable period of time.
Individuals and members of their immediate family who are
residing outside their country of citizenship as a result of
employment by the government of that country - diplomats,
Consular officials, members of the armed forces, etc. - are
considered to be residents of their country of citizenship.
(4
}
Page 6 BE-15(EZ) (REV. 1/2004)
V. SPECIAL INSTRUCTIONS
A. Insurance companies — When there is a difference between
the financial and operating data reported to stockholders and the
data reported in the annual statement to an insurance department,
prepare the BE-15 report on the same basis as the annual report to
the stockholders. Valuation should be according to normal
commercial accounting procedures, not at the rates promulgated by
the National Association of Insurance Commissioners, i.e., the BE-15
report should include the following assets even though they are not
acceptable for inclusion in the annual statement to an insurance
department: 1. nontrusteed or free account assets, and 2.
nonadmitted assets such as furniture and equipment, agents' debit
balances, and all receivables deemed to be collectible.
item on BE-15(EZ):
10 Total assets — Include current items such as agents'
balances, uncollected premiums, amounts recoverable from
reinsurers, and other current notes and accounts receivable
(net of allowances for doubtful items) arising from the ordinary
Course of business.
11 Total liabilities — include current items such as loss
liabilities, policy claims, commissions due, and other current
liabilities arising from the ordinary course of business, and
long-term debt. Exclude mandatory securities valuation
reserves that are appropriations of retained earnings.
12 Total sales — Include items such as earned premiums, annuity
considerations, gross investment income, and items of a similar
nature. Exclude income from unconsolidated affiliates.
. Railroad transportation companies — Railroad
transportation companies should include only the net annual
balances for interline settlement items (car hire, car repair, freight
revenues, switching revenues, and loss and damage settlements)
in items 10 and 11 of Form BE-15(EZ).
. Real estate — The ownership of real estate is defined to be a
business enterprise, and if the real estate is foreign owned, it is a
U.S. affiliate of a foreign person. A BE-15 report is required unless
the enterprise is otherwise exempt.
Residential real estate held exclusively for personal use and not for
profit making purposes is not subject to the reporting requirements. A
residence that is an owner's primary residence that is then leased by
the owner while outside the United States, but which the owner
intends to reoccupy, is considered real estate held for personal use
and therefore not subject to the reporting requirements. Ownership of
U.S. residential real estate by a corporation whose sole purpose is to
hold the real estate for the personal use of the owner(s) of the
corporation is considered to be real estate held for personal use and
therefore not subject to the reporting requirements.
Aggregation of real estate investments — A foreign person
holding real estate investments that are reportable on the BE-15 must
aggregate all such holdings for the purpose of applying the reporting
criteria. If the aggregate of such holdings exceeds one or more of the
exemption levels, then the holdings must be reported even if
individually they would be exempt. In such a case, file a single Form
BE-15(EZ) to report the aggregated holdings. If permission has been
received in writing from BEA to file on an non-aggregated basis, the
reports should be filed as a group and you should inform BEA that
they are all for one owner.
In Part I, Identification of U.S. Affiliate, BEA is not seeking a legal
description of the property, nor necessarily the address of the
property itself. Because there may be no operating business
enterprise for a real estate investment, what BEA seeks is a
consistently identifiable name for the investment (i.e., the U.S.
affiliate) together with an address to which report forms can be mailed
so that the investment (affiliate) can be reported on a consistent basis
for each reporting period and for the various BEA surveys.
Thus, in item 1 of the BE-15 survey forms, the "name and address"
of the U.S. affiliate might be:
XYZ Corp. N.V., Real Estate Investments
C/O B&K Inc., Accountants
120 Major Street
Miami, FL XXXXX
if the investment property has a name, such as Sunrise
Apartments, the name and address in item 1 of the BE-15 survey
forms might be:
Sunrise Apartments
C/o ABC Real Estate
120 Major Street
Miami, FL XXXXX
There are questions on the Form BE-15(EZ) that may not be
applicable to certain types of real estate investments, such as the
employer identification number and the number of employees. In
Such cases, mark the items "none".
Joint ventures and partnerships — If a foreign person has a
direct or indirect voting ownership interest of 10 percent or more in
a joint venture, partnership, etc., that is formed to own and hold,
develop, or operate real estate, the joint venture, partnership, etc.,
in its entirety, not just the foreign person's share, is a U.S. affiliate
and must be reported as follows:
BE-15(EZ) (REV.1/2004)
1. If the foreign interest in the U.S. affiliate is directly held by the
foreign person, then a BE-15 report must be filed by the affiliate
(Subject to the exemption criteria and aggregation rules
discussed above).
2. If a voting interest of more than 50 percent in the U.S. affiliate is
owned by another U.S. affiliate, the owned affiliate must be fully
consolidated in the BE-15 report of the owning affiliate.
3. If a voting interest of 50 percent or less in the U.S. affiliate is
owned by another U.S. affiliate, and no U.S. affiliate owns a
voting interest of more than 50 percent, then a separate BE-15
report must be filed by the owned affiliate. The BE-15 report(s)
of the owning affiliate(s) must show an equity investment in the
OWned affiliate.
. Farms — For farms that are not operated by their foreign owners,
the income statement and related items should be prepared based
On the extent to which the income from the farm accrues to, and
the expenses of the farm are borne by, the owner. Generally this
means that income, expenses, and gain (loss) assignable to the
owner should reflect the extent to which the risk of the operation
falls on the owner. For example, even though the operator and
other workers on the farm are hired by a management firm, if their
wages and salaries are assigned to, and borne by, the farm
operation being reported, then the operator and other workers
should be reported as employees of that farm operation and the
wages and Salaries should be treated as an expense.
EXAMPLES:
1. If the farm is leased to an operator for a fixed fee, the owner
should report the fixed fee in "total sales" and should treat the
non-operating expenses that he or she may be responsible for,
Such as real estate taxes, interest on loans, etc., as expenses.
2. If the farm is operated by a management firm that oversees the
operation of the farm and hires an operator, but the operating
income and expenses are assigned to the owner, the income
and expenses so assigned should be shown in the requested
detail as appropriate.
. Estates, trusts, and intermediaries
A FOREIGN ESTATE is a person and therefore may have direct
investment, and the estate, not the beneficiary, is considered to be the
OWner.
A TRUST is a person but it is not a business enterprise. The trust
is considered to be the same as an intermediary, and reporting
should be as outlined below. For reporting purposes, the
beneficiary(ies) of the trust is (are) considered to be the owner(s)
for purposes of determining the existence of direct investment,
except in two cases: (1) if there is, or may be, a reversionary
interest, and (2) if a corporation or other organization creates a
trust, designating its shareholders or members as beneficiaries. In
these two cases, the creator of the trust is deemed to be the Owner
of the investments of the trust (or succeeding trusts, where the
presently existing trust had evolved out of a prior trust), for the
purposes of determining the existence and reporting of direct
investment.
This procedure is adopted to fulfill the statistical purposes of this
survey and does not imply that control over an enterprise owned or
controlled by a trust is, or can be, exercised by the beneficiary(ies) or
creator(s).
FOR AN INTERMEDIARY:
1. If a U.S. intermediary holds, exercises, administers, or manages a
particular foreign direct investment in the United States for the
beneficial owner, such intermediary is responsible for reporting
the required information for, and in the name of, the U.S. affiliate.
Alternatively, the U.S. intermediary can instruct the U.S. affiliate
to submit the required information. Upon so doing, the
intermediary is released from further liability to report, provided it
has informed BEA of the date such instructions were given and
provides BEA the name and address of the U.S. affiliate, and has
supplied the U.S. affiliate with any information in the possession
of, or which can be secured by, the intermediary that is
necessary to permit the U.S. affiliate to complete the required
reports. When acting in the capacity of an intermediary, the
accounts or transactions of the U.S. intermediary with a foreign
beneficial owner are considered as accounts or transactions of
the U.S. affiliate with the foreign beneficial owner. To the extent
Such transactions or accounts are unavailable to the U.S. affiliate,
BEA may require the intermediary to report them.
2. If a foreign beneficial owner holds a U.S. affiliate through a
foreign intermediary, the U.S. affiliate may report the
intermediary as its foreign parent but must also identify and
furnish the requested information concerning the foreign
beneficial owner. Accounts or transactions of the U.S. affiliate
with the foreign intermediary are considered as accounts or
transactions of the U.S. affiliate with the foreign beneficial owner.
Page 7
VI. FILING THE BE-15
A. Due date — File a fully completed and certified Form BE-15(EZ)
no later than May 31, 2004. If the U.S. affiliate is exempt from filing
Form BE-15(EZ) based on the criteria in instruction I on page 4,
complete and file Form BE-15 Supplement C by May 31, 2004.
B. Mailing report forms to a foreign address — BEA will
accommodate foreign owners that wish to have forms sent
directly to them. However, the extra time consumed in mailing
to and from a foreign place may make meeting filing deadlines
difficult. In such cases, please consider using BEA's electronic
filing option. Go to our web site at www.bea.gov/astarſ for
details about this option. To obtain forms on line go to
www.bea.gov/bea/surveys/fdiusurv.htm.
C. Extensions — For the efficient processing of the survey and
timely dissemination of the results, it is important that your report
be filed by the due date. Nevertheless, reasonable requests for
extension of the filing deadline will normally be granted. Requests
for extensions of more than 30 days MUST be in writing and
should explain the basis for the request. You may request an
extension via email at bef 2/15(3)bea.gov. For extension
requests of 30 days or less, you may call BEA at (202)606-5577.
All requests for extensions must be received BEFORE the due
date of the report.
D. Assistance — For assistance, telephone (202) 606-5577,
FAX (202) 606-5319, or send email to bel2/15(gbea.gov.
Forms can be obtained from BEA's Web site at:
www.bea.gov/beaſsurveys/fdiusurv.htm
E. Annual stockholders' report or other financial
statements — Please furnish a copy of your FY 2003 annual
report or Form 10K when filing the BE-15 report. If you do not
publish an annual stockholders' report or Form 10K, please
provide any financial statements that may be prepared.
Information contained in these statements is useful in reviewing
your report and may reduce the need for further contact.
Section 5(c) of the International Investment and Trade in
Services Survey Act, Public Law 94-472, 90 Stat. 2059, 22
U.S.C. 3101-3108, as amended, provides that this information
can be used for analytical and statistical purposes only and that
it must be held strictly confidential.
U.S. Department of Commerce
HPA'
Bureau of Economic Analysis IVERSITY OF MICHIGAN
UNIVE
Pade 8 | | | |
F. Number of copies — File a single original copy of the form. If you
are not filing electronically, this should be the copy with the address
label in Part I, if such a labeled copy has been provided by BEA.
(Make corrections to the address on the label, if necessary.) You
should also retain a file copy of each report for three years to
facilitate resolution of any questions that BEA may have concerning
your report. (Both copies are protected by law; see the statement on
Confidentiality in paragraph VI.H., below.)
G. Where to send the report — Send reports filed by mail
through the U.S. Postal service to:
U.S. Department of Commerce
Bureau of Economic Analysis
BE-49(A)
Washington, DC 20230
Direct reports filed by private delivery service to:
U.S. Department of Commerce
Bureau of Economic Analysis
BE-49(A)
Shipping and Receiving Section, M100
1441 L Street, NW
Washington, DC 20005
H. Confidentiality — The information filed in this report may be used
only for analytical or statistical purposes and access to the
information shall be available only to officials and employees
(including consultants and contractors and their employees) of
agencies designated by the President to perform functions under the
Act. The President may authorize the exchange of the information
between agencies or officials designated to perform functions under
the Act, but only for analytical and statistical purposes. No official or
employee (including consultants and contractors and their
employees) shall publish or make available any information collected
under the Act in such a manner that the person to whom the
information relates can be specifically identified. Reports and copies
of reports prepared pursuant to the Act are confidential and their
submission or disclosure shall not be compelled by any person
without the prior written permission of the person filing the report and
the customer of such person where the information supplied is
identifiable as being derived from the records of such customer (22
U.S.C. 3104).

UNIVERSITY OF MICHGAN
L}BRARIES :
JUN 1 1 2004
C EPCSíTÉij : Y
UNITED STATES CF Aff ERICA
BE-15(EZ) (REV. 1/2004)
9 3
9015 08543 4333