An ownership-based framework of the U.S. current account, 2001-2012.

Anderson, Thomas

This report updates the supplemental ownership-based framework of the current account of the U.S. international transactions accounts prepared by the Bureau of Economic Analysis (BEA). The supplemental presentation includes the same major elements as the standard current-account presentation--trade in goods and services and receipts and payments of income on foreign investment. As in the standard presentation, transactions are defined as international when they occur between a U.S. resident and a nonresident, and the residency of an affiliate of a multinational company depends on the country of its location and not on the country of its owner. However, the ownership-based framework adds several features that highlight the important role that multinational companies play in international transactions. First, it recognizes that direct investment income results from the multinational company's active role in producing goods and services, and it renames this income as "net receipts or payments of direct investment income resulting from sales by affiliates." This distinguishes it from the other, more passive types of investment income included in the current account, such as dividends and interest on foreign stocks and bonds. Second, it shows that these receipts and payments are the result of substantial sales of goods and services and purchases of labor and other inputs. Finally, it disaggregates trade in goods and services to show trade with affiliated foreigners separately from trade with unaffiliated foreigners.

This report includes new summary statistics of the major current-account aggregates for 2012, revised and more detailed statistics for 2011, and revised statistics for earlier years. (1) A technical note that presents information on the conceptual basis of the ownership-based frame work is available at www.bea.gov/international/ supplemental_statistics.htm. (2)

The following are highlights of the updated statistics:

* Net receipts of direct investment income by U.S. parents, defined as sales by their foreign affiliates net of costs and profits accruing to foreigners, were $470.2 billion in 2012, down slightly from $478.8 billion in 2011 (table 1). Net payments of direct investment income to foreign parents, defined as sales by their U.S. affiliates net of costs and profits accruing to U.S. persons, were $176.7 billion in 2012, up slightly from $168.2 billion in 2011.

* In 2011 (the latest year for which detailed statistics are available), the net receipts of $478.8 billion resulted from sales of $6,951.7 billion less deductions of $6,472.9 billion for labor, capital purchased inputs, and profits accruing to foreign persons. The net payments to foreign parents of $168.2 billion resulted from sales of $3,796.9 billion less deductions of $3,628.7 billion.

* In 2012, U.S. receipts from exports of goods and services and net income receipts of U.S. parents from sales by foreign affiliates were $2,680.8 billion, which consisted of exports of goods and services of $2,210.6 billion and net income receipts of U.S. parents from sales by their foreign affiliates of $470.2 billion. U.S. payments from imports of goods and services and net income payments to foreign parents resulting from sales by U.S. affiliates were $2,922.0 billion, which consisted of imports of goods and services of $2,745.2 billion and net income payments to foreign parents from sales by their U.S. affiliates of $176.7 billion.

* In 2012, the resulting deficit on goods, services, and net receipts from sales by affiliates (line 41) was $241.2 billion. This deficit was $293.5 billion less than the $534.7 billion deficit on trade in goods and services in the conventional framework of the international transactions accounts. The deficit in the ownership-based framework was smaller than the deficit in the conventional framework because the receipts of income by U.S. parents from sales by their foreign affiliates were larger than payments of income to foreign parents from sales by their U.S. affiliates.

* The $241.2 billion deficit on goods, services, and net receipts from sales by affiliates in 2012 was $5.1 billion less than the deficit in 2011. The 2012 decrease stemmed from a decrease of $22.2 billion in the deficit on trade in goods and services (the result of a decrease of $2.7 billion in the deficit on trade in goods and an increase of $19.5 billion in the surplus on trade in services), which was largely offset by a decrease of $17.1 billion in the surplus on net receipts from sales by affiliates.

* The updated statistics incorporate the results of the 2013 annual revision of the U.S. international transactions accounts that featured newly available and revised source data and improved estimation methodologies. (3) Many of these changes are part of an ongoing multiyear effort to modernize, enhance, and restructure the international transactions accounts and to align them more closely with international standards. (4) The current-account statistics on exports and imports of goods and services, income receipts and payments, and net unilateral current transfers were revised for 1999-2012. In addition, the statistics incorporate the preliminary results from the 2011 annual surveys of U.S. direct investment abroad and foreign direct investment in the United States and the final results of the 2010 annual surveys of U.S. direct investment abroad and foreign direct investment in the United States. (5)

(1.) The statistics for 1982-2012 are available on BEA's Web site at www.bea.gov. Under "International" and "Supplemental Statistics," click on "Ownership-based current account and other supplemental statistics" and then on "Ownership-Based Framework of the U.S. Current Account, 1982-2012 (XLS)"; for details about data sources for the statistics, see the "Data Sources" tabs of the Excel spreadsheet.

(2.) For additional information on the sources and methods used to prepare the supplemental estimates, see Obie G. Whichard and Jeffrey H. Lowe, "An Ownership-Based Disaggregation of the U.S. Current Account, 1982-93," SURVEY OF CURRENT BUSINESS 75 (October 1995): 52-61. For a general review of the issues relating to ownership relationships in international transactions, see J. Steven Landefeld, Obie G. Whichard, and Jeffrey H. Lowe, "Alternative Frameworks for U.S. International Transactions," SURVEY 73 (December 1993): 50-61.

(3.) For more information, see Barbara H. Berman and Jeffrey R. Bogen, "Annual Revision of the U.S. International Transactions Accounts," Survey 93 (July 2013): 43-54.

(4.) For the most recent update, see Kristy L. Howell and Kyle L. Westmoreland, "Modernizing and Enhancing BEA's International Economic Accounts: A Progress Report and Plans for Implementation," Survey 93 (May 2013): 44-52.

(5.) For more information on the foreign direct investment in the United States annual survey results, see Thomas Anderson, "U.S. Affiliates of Foreign Companies: Operations in 2011," Survey 93 (August 2013) 82-87. For more information on the U.S. direct investment abroad annual survey results, see Kevin B. Barefoot, "U.S. Multinational Companies: Operations of U.S. Parents and Foreign Affiliates in 2011," Survey 93 (November 2013) 37-47.

Table 1. Ownership-Based Framework of the U.S. Current Account,
2001-2012--Continues [Billions of dollars]

Line 2001 2002

1 Exports of goods and services and 1,300.2 1,263.6
 income receipts (line 2 plus
 income receipts (line 2 plus line
 16, and international transactions
 accounts (ITAs) table 1, line 1)
2 Receipts resulting from exports of 1,136.4 1,126.5
 goods and services and sales by
 foreign affiliates (line 3 plus
 line 8)
3 Exports of goods and services, 1,007.7 980.9
 total (ITA table 1, line 2)
3a Goods, balance of payments 731.2 697.4
 basis (ITA table 1, line
 3)
3b Services (ITA table 1, line 276.5 283.4
 4)
4 To unaffiliated foreigners 705.4 688.0
4a Goods (1) 495.1 477.8
4b Services 210.3 210.1
5 To affiliated foreigners 302.3 292.9
5a Goods (1) 236.1 219.6
5b Services 66.2 73.3
6 To foreign affiliates of US 221.7 204.9
 parents
6a Goods (1) 170.2 150.6
6b Services 51.5 54.3
7 To foreign parent groups of US 80.6 88.0
 affiliates
7a Goods (1) 65.9 69.0
7b Services 14.7 19.0
8 Net receipts by US parents of 128.7 145.6
 direct investment income
 resulting from sales by their
 foreign affiliates (ITA table
 1, line 14)
9 Sales by foreign affiliates 2,945.9 2,945.7
 (2)
10 Less: Foreign affiliates' 249.5 232.8
 purchases of goods and
 services directly from
 the United States (3)
11 Less: Costs and profits 2,055.2 2,038.7
 accruing to foreign
 persons
12 Compensation of 309.7 311.4
 employees of foreign
 affiliates
13 Other 1,745.6 1,727.3
14 Less: Sales by foreign 514.8 530.0
 affiliates to other
 foreign affiliates of the
 same parent
15 Plus: Bank affiliates (net 2.3 1.3
 receipts)
16 Other income receipts 163.8 137.1
17 Other private receipts on US- 155.7 129.2
 owned assets abroad (ITA
 table 1, line 15)
18 US government receipts (ITA 3.6 3.3
 table 1, line 16)
19 Compensation of employees (ITA 4.5 4.6
 table 1, line 17)
20 Imports of goods and services and 1,632.8 1,656.6
 income payments (line 21 plus line
 35, and ITA table 1, line 18)
21 Payments resulting from imports of 1,382.3 1,441.6
 goods and services and sales by
 US affiliates (line 22 plus line
 27)
22 Imports of goods and services, 1,370.1 1,399.0
 total (ITA table 1, line 19)
22a Goods, balance of payments 1,153.7 1,173.3
 basis (ITA table 1, line
 20)
22b Services (ITA table 1, line 216.4 225.8
 21)
23 From unaffiliated foreigners 880.6 894.7
23a Goods (1) 705.1 713.5
23b Services 175.5 181.2
24 From affiliated foreigners 489.5 504.3
24a Goods (1) 448.6 459.8
24b Services 40.9 44.6
25 From foreign affiliates of 201.3 202.0
 US parents
25a Goods (1) 182.2 182.0
25b Services 19.1 19.9
26 From foreign parent groups 288.3 302.4
 of US affiliates
26a Goods (1) 266.5 277.7
26b Services 21.8 24.7
27 Net payments to foreign parents 12.8 43.2
 of direct investment income
 resulting from sales by their
 US affiliates (ITA table 1,
 line 31)
28 Sales by US affiliates (2) 2,327.1 2,216.5
29 Less: US affiliates' 369.6 372.8
 purchases of goods and
 services directly from
 abroad (4)
30 Less: Costs and profits 1,946.7 1,802.1
 accruing to US persons
31 Compensation of 344.7 341.9
 employees of US
 affiliates
32 Other 1,601.9 1,460.2
33 Less: Sales by US affiliates n.a. n.a.
 to other US affiliates of
 the same parent
34 Plus: Bank affiliates (net 2.0 1.6
 payments)
35 Other income payments 249.9 214.3
36 Other private payments on 159.8 127.0
 foreign-owned assets in the
 United States (ITA table 1,
 line 32)
37 US government payments (ITA 78.4 74.9
 table 1, line 33)
38 Compensation of employees (ITA 11.7 12.4
 table 1, line 34)
39 Unilateral current transfers, net (ITA -64.1 -64.8
 table 1, line 35)

 Memoranda:

40 Balance on goods and services (line 3 -362.3 -418.2
 minus line 22, and ITA table 1, line
 74)
41 Balance on goods, services, and net -245.9 -315.1
 receipts from sales by affiliates
 (line 2 minus line 21)
42 Balance on current account (line 1 -396.7 -457.8
 minus line 20 plus line 39, and ITA
 table 1, line 77)

 Addenda:

 Source of the content of foreign
 affiliates' sales and change in
 inventories: (2)

43 Sales to nonaffiliates and change 2,424.0 2,425.9
 in inventories, total (line 9
 minus line 14 plus the change in
 inventories)
44 Foreign content 2,174.5 2,193.1
45 Value added by foreign 683.4 704.5
 affiliates of US parents
46 Other foreign content (6) 1,491.1 1,488.6
47 US content 249.5 232.8

 Source of the content of US affiliates'
 sales and change in inventories:
 (2, 7)

48 Sales to nonaffiliates and change 2,318.9 2,214.5
 in inventories, total (line 28
 minus line 33 plus the change in
 inventories)
49 US content 1,949.3 1,841.7
50 Value added by US 477.0 502.7
 affiliates of foreign
 parents
51 Other US content (8) 1,472.3 1,339.0
52 Foreign content 369.6 372.8

Line 2003 2004

1 Exports of goods and services and 1,346.3 1,579.5
 income receipts (line 2 plus
 income receipts (line 2 plus line
 16, and international transactions
 accounts (ITAs) table 1, line 1)
2 Receipts resulting from exports of 1,209.9 1,414.3
 goods and services and sales by
 foreign affiliates (line 3 plus
 line 8)
3 Exports of goods and services, 1,023.9 1,163.7
 total (ITA table 1, line 2)
3a Goods, balance of payments 729.8 822.0
 basis (ITA table 1, line
 3)
3b Services (ITA table 1, line 293.7 341.7
 4)
4 To unaffiliated foreigners 713.4 823.4
4a Goods (1) 497.8 571.3
4b Services 215.2 252.2
5 To affiliated foreigners 310.5 340.3
5a Goods (1) 232.0 250.7
5b Services 78.5 89.5
6 To foreign affiliates of US 215.3 238.9
 parents
6a Goods (1) 156.6 170.6
6b Services 58.6 68.2
7 To foreign parent groups of US 95.2 101.4
 affiliates
7a Goods (1) 75.3 80.1
7b Services 19.9 21.3
8 Net receipts by US parents of 186.4 250.6
 direct investment income
 resulting from sales by their
 foreign affiliates (ITA table
 1, line 14)
9 Sales by foreign affiliates 3,319.5 3,841.4
 (2)
10 Less: Foreign affiliates' 242.6 264.0
 purchases of goods and
 services directly from
 the United States (3)
11 Less: Costs and profits 2,246.3 2,548.2
 accruing to foreign
 persons
12 Compensation of 338.1 378.6
 employees of foreign
 affiliates
13 Other 1,908.2 2,169.6
14 Less: Sales by foreign 646.4 780.0
 affiliates to other
 foreign affiliates of the
 same parent
15 Plus: Bank affiliates (net 2.3 1.3
 receipts)
16 Other income receipts 136.0 165.2
17 Other private receipts on US- 126.5 157.3
 owned assets abroad (ITA
 table 1, line 15)
18 US government receipts (ITA 4.8 3.1
 table 1, line 16)
19 Compensation of employees (ITA 4.7 4.7
 table 1, line 17)
20 Imports of goods and services and 1,794.1 2,120.3
 income payments (line 21 plus line
 35, and ITA table 1, line 18)
21 Payments resulting from imports of 1,588.3 1,868.3
 goods and services and sales by
 US affiliates (line 22 plus line
 27)
22 Imports of goods and services, 1,514.5 1,768.6
 total (ITA table 1, line 19)
22a Goods, balance of payments 1,272.1 1,488.3
 basis (ITA table 1, line
 20)
22b Services (ITA table 1, line 242.4 280.3
 21)
23 From unaffiliated foreigners 975.4 1,166.3
23a Goods (1) 779.7 936.8
23b Services 195.8 229.6
24 From affiliated foreigners 539.1 602.3
24a Goods (1) 492.4 551.5
24b Services 46.6 50.7
25 From foreign affiliates of 214.1 241.8
 US parents
25a Goods (1) 192.6 218.8
25b Services 21.5 23.0
26 From foreign parent groups 324.9 360.4
 of US affiliates
26a Goods (1) 299.8 332.7
26b Services 25.2 27.7
27 Net payments to foreign parents 73.8 99.8
 of direct investment income
 resulting from sales by their
 US affiliates (ITA table 1,
 line 31)
28 Sales by US affiliates (2) 2,323.2 2,526.3
29 Less: US affiliates' 393.3 437.5
 purchases of goods and
 services directly from
 abroad (4)
30 Less: Costs and profits 1,858.2 1,993.8
 accruing to US persons
31 Compensation of 342.7 351.9
 employees of US
 affiliates
32 Other 1,515.5 1,641.9
33 Less: Sales by US affiliates n.a. n.a.
 to other US affiliates of
 the same parent
34 Plus: Bank affiliates (net 2.2 4.7
 payments)
35 Other income payments 205.9 251.9
36 Other private payments on 119.1 155.3
 foreign-owned assets in the
 United States (ITA table 1,
 line 32)
37 US government payments (ITA 73.9 82.7
 table 1, line 33)
38 Compensation of employees (ITA 12.9 14.0
 table 1, line 34)
39 Unilateral current transfers, net (ITA -70.9 -88.6
 table 1, line 35)

 Memoranda:

40 Balance on goods and services (line 3 -490.5 -604.9
 minus line 22, and ITA table 1, line
 74)
41 Balance on goods, services, and net -378.4 -454.0
 receipts from sales by affiliates
 (line 2 minus line 21)
42 Balance on current account (line 1 -518.7 -629.3
 minus line 20 plus line 39, and ITA
 table 1, line 77)

 Addenda:

 Source of the content of foreign
 affiliates' sales and change in
 inventories: (2)

43 Sales to nonaffiliates and change 2,692.3 3,092.4
 in inventories, total (line 9
 minus line 14 plus the change in
 inventories)
44 Foreign content 2,449.7 2,828.5
45 Value added by foreign 808.4 948.9
 affiliates of US parents
46 Other foreign content (6) 1,641.3 1,879.6
47 US content 242.6 264.0

 Source of the content of US affiliates'
 sales and change in inventories:
 (2, 7)

48 Sales to nonaffiliates and change 2,326.1 2,543.4
 in inventories, total (line 28
 minus line 33 plus the change in
 inventories)
49 US content 1,932.7 2,105.9
50 Value added by US 519.9 563.5
 affiliates of foreign
 parents
51 Other US content (8) 1,412.8 1,542.4
52 Foreign content 393.3 437.5

Line 2005 2006

1 Exports of goods and services and 1,825.6 2,145.5
 income receipts (line 2 plus
 income receipts (line 2 plus line
 16, and international transactions
 accounts (ITAs) table 1, line 1)
2 Receipts resulting from exports of 1,582.8 1,785.6
 goods and services and sales by
 foreign affiliates (line 3 plus
 line 8)
3 Exports of goods and services, 1,288.3 1,460.8
 total (ITA table 1, line 2)
3a Goods, balance of payments 911.7 1,039.4
 basis (ITA table 1, line
 3)
3b Services (ITA table 1, line 376.6 421.4
 4)
4 To unaffiliated foreigners 918.0 1,058.6
4a Goods (1) 637.9 746.3
4b Services 280.1 312.3
5 To affiliated foreigners 370.3 402.2
5a Goods (1) 273.8 293.1
5b Services 96.5 109.1
6 To foreign affiliates of US 264.7 286.1
 parents
6a Goods (1) 188.8 200.2
6b Services 75.9 85.8
7 To foreign parent groups of US 105.6 116.1
 affiliates
7a Goods (1) 85.1 92.8
7b Services 20.6 23.3
8 Net receipts by US parents of 294.5 324.8
 direct investment income
 resulting from sales by their
 foreign affiliates (ITA table
 1, line 14)
9 Sales by foreign affiliates 4,362.2 4,793.3
 (2)
10 Less: Foreign affiliates' 293.1 323.4
 purchases of goods and
 services directly from
 the United States (3)
11 Less: Costs and profits 2,837.3 3,098.8
 accruing to foreign
 persons
12 Compensation of 405.0 436.1
 employees of foreign
 affiliates
13 Other 2,432.3 2,662.7
14 Less: Sales by foreign 937.5 1,040.0
 affiliates to other
 foreign affiliates of the
 same parent
15 Plus: Bank affiliates (net 0.2 -6.4
 receipts)
16 Other income receipts 242.8 359.9
17 Other private receipts on US- 235.1 352.1
 owned assets abroad (ITA
 table 1, line 15)
18 US government receipts (ITA 2.9 2.7
 table 1, line 16)
19 Compensation of employees (ITA 4.8 5.1
 table 1, line 17)
20 Imports of goods and services and 2,465.9 2,854.5
 income payments (line 21 plus line
 35, and ITA table 1, line 18)
21 Payments resulting from imports of 2,117.4 2,363.9
 goods and services and sales by
 US affiliates (line 22 plus line
 27)
22 Imports of goods and services, 1,996.2 2,213.2
 total (ITA table 1, line 19)
22a Goods, balance of payments 1,695.8 1,878.2
 basis (ITA table 1, line
 20)
22b Services (ITA table 1, line 300.4 335.0
 21)
23 From unaffiliated foreigners 1,323.1 1,486.2
23a Goods (1) 1,080.8 1,219.1
23b Services 242.2 267.0
24 From affiliated foreigners 673.1 727.0
24a Goods (1) 615.0 659.1
24b Services 58.2 68.0
25 From foreign affiliates of 270.7 286.1
 US parents
25a Goods (1) 245.0 249.6
25b Services 25.7 36.5
26 From foreign parent groups 402.4 440.9
 of US affiliates
26a Goods (1) 370.0 409.5
26b Services 32.4 31.5
27 Net payments to foreign parents 121.3 150.8
 of direct investment income
 resulting from sales by their
 US affiliates (ITA table 1,
 line 31)
28 Sales by US affiliates (2) 2,792.5 3,114.5
29 Less: US affiliates' 495.0 546.0
 purchases of goods and
 services directly from
 abroad (4)
30 Less: Costs and profits 2,180.5 2,425.3
 accruing to US persons
31 Compensation of 365.5 395.9
 employees of US
 affiliates
32 Other 1,815.0 2,029.4
33 Less: Sales by US affiliates n.a. n.a.
 to other US affiliates of
 the same parent
34 Plus: Bank affiliates (net 4.4 7.5
 payments)
35 Other income payments 348.4 490.6
36 Other private payments on 228.4 338.9
 foreign-owned assets in the
 United States (ITA table 1,
 line 32)
37 US government payments (ITA 104.1 135.2
 table 1, line 33)
38 Compensation of employees (ITA 15.9 16.4
 table 1, line 34)
39 Unilateral current transfers, net (ITA -99.5 -89.4
 table 1, line 35)

 Memoranda:

40 Balance on goods and services (line 3 -707.9 -752.4
 minus line 22, and ITA table 1, line
 74)
41 Balance on goods, services, and net -534.6 -578.3
 receipts from sales by affiliates
 (line 2 minus line 21)
42 Balance on current account (line 1 -739.8 -798.5
 minus line 20 plus line 39, and ITA
 table 1, line 77)

 Addenda:

 Source of the content of foreign
 affiliates' sales and change in
 inventories: (2)

43 Sales to nonaffiliates and change 3,544.0 3,722.6
 in inventories, total (line 9
 minus line 14 plus the change in
 inventories)
44 Foreign content 3,250.9 3,399.2
45 Value added by foreign 1,050.0 1,151.1
 affiliates of US parents
46 Other foreign content (6) 2,200.9 2,248.1
47 US content 293.1 323.4

 Source of the content of US affiliates'
 sales and change in inventories:
 (2, 7)

48 Sales to nonaffiliates and change 2,814.6 3,138.3
 in inventories, total (line 28
 minus line 33 plus the change in
 inventories)
49 US content 2,319.5 2,592.3
50 Value added by US 611.5 679.7
 affiliates of foreign
 parents
51 Other US content (8) 1,708.0 1,912.6
52 Foreign content 495.0 546.0

Line 2007 2008

1 Exports of goods and services and 2,486.8 2,654.4
 income receipts (line 2 plus
 income receipts (line 2 plus line
 16, and international transactions
 accounts (ITAs) table 1, line 1)
2 Receipts resulting from exports of 2,023.6 2,254.1
 goods and services and sales by
 foreign affiliates (line 3 plus
 line 8)
3 Exports of goods and services, 1,652.9 1,840.3
 total (ITA table 1, line 2)
3a Goods, balance of payments 1,163.6 1,307.3
 basis (ITA table 1, line
 3)
3b Services (ITA table 1, line 489.3 533.0
 4)
4 To unaffiliated foreigners 1,192.3 1,351.7
4a Goods (1) 835.6 959.8
4b Services 356.7 391.9
5 To affiliated foreigners 460.5 488.6
5a Goods (1) 328.0 347.5
5b Services 132.6 141.1
6 To foreign affiliates of US 321.2 339.9
 parents
6a Goods (1) 214.1 227.6
6b Services 107.2 112.3
7 To foreign parent groups of US 139.3 148.7
 affiliates
7a Goods (1) 113.9 119.9
7b Services 25.4 28.8
8 Net receipts by US parents of 370.8 413.7
 direct investment income
 resulting from sales by their
 foreign affiliates (ITA table
 1, line 14)
9 Sales by foreign affiliates 5,785.1 6,513.2
 (2)
10 Less: Foreign affiliates' 363.4 380.2
 purchases of goods and
 services directly from
 the United States (3)
11 Less: Costs and profits 3,752.5 4,285.4
 accruing to foreign
 persons
12 Compensation of 505.7 535.9
 employees of foreign
 affiliates
13 Other 3,246.8 3,749.5
14 Less: Sales by foreign 1,298.5 1,433.9
 affiliates to other
 foreign affiliates of the
 same parent
15 Plus: Bank affiliates (net ... ...
 receipts)
16 Other income receipts 463.2 400.3
17 Other private receipts on US- 455.4 389.9
 owned assets abroad (ITA
 table 1, line 15)
18 US government receipts (ITA 2.5 5.1
 table 1, line 16)
19 Compensation of employees (ITA 5.2 5.4
 table 1, line 17)
20 Imports of goods and services and 3,085.3 3,210.6
 income payments (line 21 plus line
 35, and ITA table 1, line 18)
21 Payments resulting from imports of 2,478.1 2,672.1
 goods and services and sales by
 US affiliates (line 22 plus line
 27)
22 Imports of goods and services, 2,351.9 2,542.6
 total (ITA table 1, line 19)
22a Goods, balance of payments 1,986.3 2,141.3
 basis (ITA table 1, line
 20)
22b Services (ITA table 1, line 365.6 401.3
 21)
23 From unaffiliated foreigners 1,569.2 1,713.6
23a Goods (1) 1,279.8 1,398.3
23b Services 289.4 315.3
24 From affiliated foreigners 782.7 829.1
24a Goods (1) 706.5 743.0
24b Services 76.2 86.0
25 From foreign affiliates of 310.2 320.7
 US parents
25a Goods (1) 267.4 272.6
25b Services 42.8 48.1
26 From foreign parent groups 472.6 508.3
 of US affiliates
26a Goods (1) 439.2 470.4
26b Services 33.4 37.9
27 Net payments to foreign parents 126.2 129.4
 of direct investment income
 resulting from sales by their
 US affiliates (ITA table 1,
 line 31)
28 Sales by US affiliates (2) 3,616.2 3,887.1
29 Less: US affiliates' 599.8 661.9
 purchases of goods and
 services directly from
 abroad (4)
30 Less: Costs and profits 2,890.3 3,095.7
 accruing to US persons
31 Compensation of 437.6 457.2
 employees of US
 affiliates
32 Other 2,452.7 2,638.6
33 Less: Sales by US affiliates n.a. n.a.
 to other US affiliates of
 the same parent
34 Plus: Bank affiliates (net ... ...
 payments)
35 Other income payments 607.2 538.5
36 Other private payments on 426.8 354.6
 foreign-owned assets in the
 United States (ITA table 1,
 line 32)
37 US government payments (ITA 164.7 166.8
 table 1, line 33)
38 Compensation of employees (ITA 15.7 17.1
 table 1, line 34)
39 Unilateral current transfers, net (ITA -114.9 -125.2
 table 1, line 35)

 Memoranda:

40 Balance on goods and services (line 3 -699.1 -702.3
 minus line 22, and ITA table 1, line
 74)
41 Balance on goods, services, and net -454.5 -418.0
 receipts from sales by affiliates
 (line 2 minus line 21)
42 Balance on current account (line 1 -713.4 -681.3
 minus line 20 plus line 39, and ITA
 table 1, line 77)

 Addenda:

 Source of the content of foreign
 affiliates' sales and change in
 inventories: (2)

43 Sales to nonaffiliates and change 4,565.1 5,069.7
 in inventories, total (line 9
 minus line 14 plus the change in
 inventories)
44 Foreign content 4,201.7 4,689.5
45 Value added by foreign 1,346.1 1,466.7
 affiliates of US parents
46 Other foreign content (6) 2,855.6 3,222.7
47 US content 363.4 380.2

 Source of the content of US affiliates'
 sales and change in inventories:
 (2, 7)

48 Sales to nonaffiliates and change 3,613.3 3,912.5
 in inventories, total (line 28
 minus line 33 plus the change in
 inventories)
49 US content 3,013.6 3,250.6
50 Value added by US 736.7 714.8
 affiliates of foreign
 parents
51 Other US content (8) 2,276.8 2,535.8
52 Foreign content 599.8 661.9

Line 2009 2010

1 Exports of goods and services and 2,184.8 2,522.5
 income receipts (line 2 plus
 income receipts (line 2 plus line
 16, and international transactions
 accounts (ITAs) table 1, line 1)
2 Receipts resulting from exports of 1,940.7 2,285.4
 goods and services and sales by
 foreign affiliates (line 3 plus
 line 8)
3 Exports of goods and services, 1,578.2 1,844.5
 total (ITA table 1, line 2)
3a Goods, balance of payments 1,069.5 1,288.8
 basis (ITA table 1, line
 3)
3b Services (ITA table 1, line 508.7 555.7
 4)
4 To unaffiliated foreigners 1,115.5 1,334.2
4a Goods (1) 747.7 930.1
4b Services 367.9 404.1
5 To affiliated foreigners 462.6 510.3
5a Goods (1) 321.8 358.7
5b Services 140.8 151.5
6 To foreign affiliates of US 318.0 353.0
 parents
6a Goods (1) 207.5 232.8
6b Services 110.5 120.2
7 To foreign parent groups of US 144.7 157.3
 affiliates
7a Goods (1) 114.3 126.0
7b Services 30.3 31.3
8 Net receipts by US parents of 362.5 440.9
 direct investment income
 resulting from sales by their
 foreign affiliates (ITA table
 1, line 14)
9 Sales by foreign affiliates 5,640.4 6,066.7
 (2)
10 Less: Foreign affiliates' 340.6 379.7
 purchases of goods and
 services directly from
 the United States (3)
11 Less: Costs and profits 3,706.0 3,952.4
 accruing to foreign
 persons
12 Compensation of 547.9 559.1
 employees of foreign
 affiliates
13 Other 3,158.2 3,393.3
14 Less: Sales by foreign 1,231.2 1,293.7
 affiliates to other
 foreign affiliates of the
 same parent
15 Plus: Bank affiliates (net ... ...
 receipts)
16 Other income receipts 244.1 237.1
17 Other private receipts on US- 233.5 229.7
 owned assets abroad (ITA
 table 1, line 15)
18 US government receipts (ITA 4.8 1.5
 table 1, line 16)
19 Compensation of employees (ITA 5.7 5.9
 table 1, line 17)
20 Imports of goods and services and 2,444.9 2,844.2
 income payments (line 21 plus line
 35, and ITA table 1, line 18)
21 Payments resulting from imports of 2,066.7 2,496.7
 goods and services and sales by
 US affiliates (line 22 plus line
 27)
22 Imports of goods and services, 1,961.8 2,343.8
 total (ITA table 1, line 19)
22a Goods, balance of payments 1,580.0 1,939.0
 basis (ITA table 1, line
 20)
22b Services (ITA table 1, line 381.8 404.9
 21)
23 From unaffiliated foreigners 1,229.8 1,545.6
23a Goods (1) 936.8 1,237.3
23b Services 293.0 308.2
24 From affiliated foreigners 732.1 798.3
24a Goods (1) 643.2 701.6
24b Services 88.8 96.7
25 From foreign affiliates of 284.7 327.1
 US parents
25a Goods (1) 233.6 270.7
25b Services 51.2 56.4
26 From foreign parent groups 447.3 471.2
 of US affiliates
26a Goods (1) 409.7 431.0
26b Services 37.7 40.3
27 Net payments to foreign parents 104.8 152.9
 of direct investment income
 resulting from sales by their
 US affiliates (ITA table 1,
 line 31)
28 Sales by US affiliates (2) 3,277.2 3,432.2
29 Less: US affiliates' 555.1 608.6
 purchases of goods and
 services directly from
 abroad (4)
30 Less: Costs and profits 2,617.2 2,670.8
 accruing to US persons
31 Compensation of 450.6 448.9
 employees of US
 affiliates
32 Other 2,166.6 2,221.8
33 Less: Sales by US affiliates n.a. n.a.
 to other US affiliates of
 the same parent
34 Plus: Bank affiliates (net ... ...
 payments)
35 Other income payments 378.2 347.5
36 Other private payments on 219.4 196.4
 foreign-owned assets in the
 United States (ITA table 1,
 line 32)
37 US government payments (ITA 144.4 137.2
 table 1, line 33)
38 Compensation of employees (ITA 14.4 14.0
 table 1, line 34)
39 Unilateral current transfers, net (ITA -121.6 -127.8
 table 1, line 35)

 Memoranda:

40 Balance on goods and services (line 3 -383.7 -499.4
 minus line 22, and ITA table 1, line
 74)
41 Balance on goods, services, and net -126.0 -211.4
 receipts from sales by affiliates
 (line 2 minus line 21)
42 Balance on current account (line 1 -381.6 -449.5
 minus line 20 plus line 39, and ITA
 table 1, line 77)

 Addenda:

 Source of the content of foreign
 affiliates' sales and change in
 inventories: (2)

43 Sales to nonaffiliates and change 4,433.8 4,794.3
 in inventories, total (line 9
 minus line 14 plus the change in
 inventories)
44 Foreign content 4,093.6 4,441.3
45 Value added by foreign 1,350.0 1,458.1
 affiliates of US parents
46 Other foreign content (6) 2,743.6 2,983.2
47 US content 340.1 353.0

 Source of the content of US affiliates'
 sales and change in inventories:
 (2, 7)

48 Sales to nonaffiliates and change 3,273.1 3,434.6
 in inventories, total (line 28
 minus line 33 plus the change in
 inventories)
49 US content 2,718.0 2,826.0
50 Value added by US 665.5 727.1
 affiliates of foreign
 parents
51 Other US content (8) 2,052.5 2,098.9
52 Foreign content 555.1 608.6

Line 2011 2012 (9)

1 Exports of goods and services and 2,873.7 2,986.9
 income receipts (line 2 plus
 income receipts (line 2 plus line
 16, and international transactions
 accounts (ITAs) table 1, line 1)
2 Receipts resulting from exports of 2,591.6 2,680.8
 goods and services and sales by
 foreign affiliates (line 3 plus
 line 8)
3 Exports of goods and services, 2,112.8 2,210.6
 total (ITA table 1, line 2)
3a Goods, balance of payments 1,495.9 1,561.2
 basis (ITA table 1, line
 3)
3b Services (ITA table 1, line 617.0 649.3
 4)
4 To unaffiliated foreigners 1,536.5 ...
4a Goods (1) 1,089.9 ...
4b Services 446.6 ...
5 To affiliated foreigners 576.3 ...
5a Goods (1) 406.0 ...
5b Services 170.3 ...
6 To foreign affiliates of US 403.6 ...
 parents
6a Goods (1) 266.7 ...
6b Services 136.9 ...
7 To foreign parent groups of US 172.7 ...
 affiliates
7a Goods (1) 139.3 ...
7b Services 33.4 ...
8 Net receipts by US parents of 478.8 470.2
 direct investment income
 resulting from sales by their
 foreign affiliates (ITA table
 1, line 14)
9 Sales by foreign affiliates 6,951.7 ...
 (2)
10 Less: Foreign affiliates' 424.1 ...
 purchases of goods and
 services directly from
 the United States (3)
11 Less: Costs and profits 4,516.8 ...
 accruing to foreign
 persons
12 Compensation of 598.4 ...
 employees of foreign
 affiliates
13 Other 3,918.3 ...
14 Less: Sales by foreign 1,532.0 ...
 affiliates to other
 foreign affiliates of the
 same parent
15 Plus: Bank affiliates (net ... ...
 receipts)
16 Other income receipts 282.0 306.1
17 Other private receipts on US- 274.0 297.9
 owned assets abroad (ITA
 table 1, line 15)
18 US government receipts (ITA 1.9 2.0
 table 1, line 16)
19 Compensation of employees (ITA 6.1 6.3
 table 1, line 17)
20 Imports of goods and services and 3,197.8 3,297.7
 income payments (line 21 plus line
 35, and ITA table 1, line 18)
21 Payments resulting from imports of 2,837.9 2,922.0
 goods and services and sales by
 US affiliates (line 22 plus line
 27)
22 Imports of goods and services, 2,669.7 2,745.2
 total (ITA table 1, line 19)
22a Goods, balance of payments 2,240.0 2,302.7
 basis (ITA table 1, line
 20)
22b Services (ITA table 1, line 429.7 442.5
 21)
23 From unaffiliated foreigners 1,777.6 ...
23a Goods (1) 1,460.7 ...
23b Services 316.9 ...
24 From affiliated foreigners 892.0 ...
24a Goods (1) 779.3 ...
24b Services 112.8 ...
25 From foreign affiliates of 382.5 ...
 US parents
25a Goods (1) 313.0 ...
25b Services 69.5 ...
26 From foreign parent groups 509.6 ...
 of US affiliates
26a Goods (1) 466.3 ...
26b Services 43.3 ...
27 Net payments to foreign parents 168.2 176.7
 of direct investment income
 resulting from sales by their
 US affiliates (ITA table 1,
 line 31)
28 Sales by US affiliates (2) 3,796.9 ...
29 Less: US affiliates' 690.5 ...
 purchases of goods and
 services directly from
 abroad (4)
30 Less: Costs and profits 2,938.2 ...
 accruing to US persons
31 Compensation of 471.2 ...
 employees of US
 affiliates
32 Other 2,467.0 ...
33 Less: Sales by US affiliates n.a. ...
 to other US affiliates of
 the same parent
34 Plus: Bank affiliates (net ... ...
 payments)
35 Other income payments 359.9 375.7
36 Other private payments on 213.4 233.3
 foreign-owned assets in the
 United States (ITA table 1,
 line 32)
37 US government payments (ITA 132.4 127.7
 table 1, line 33)
38 Compensation of employees (ITA 14.2 14.6
 table 1, line 34)
39 Unilateral current transfers, net (ITA -133.5 -129.7
 table 1, line 35)

 Memoranda:

40 Balance on goods and services (line 3 -556.8 -534.7
 minus line 22, and ITA table 1, line
 74)
41 Balance on goods, services, and net -246.3 -241.2
 receipts from sales by affiliates
 (line 2 minus line 21)
42 Balance on current account (line 1 -457.7 -440.4
 minus line 20 plus line 39, and ITA
 table 1, line 77)

 Addenda:

 Source of the content of foreign
 affiliates' sales and change in
 inventories: (2)

43 Sales to nonaffiliates and change 5,439.1 ...
 in inventories, total (line 9
 minus line 14 plus the change in
 inventories)
44 Foreign content 5,035.5 ...
45 Value added by foreign 1,683.2 ...
 affiliates of US parents
46 Other foreign content (6) 3,352.2 ...
47 US content 403.6 ...

 Source of the content of US affiliates'
 sales and change in inventories:
 (2, 7)

48 Sales to nonaffiliates and change 3,823.0 ...
 in inventories, total (line 28
 minus line 33 plus the change in
 inventories)
49 US content 3,132.5 ...
50 Value added by US 796.3 ...
 affiliates of foreign
 parents
51 Other US content (8) 2,336.2 ...
52 Foreign content 690.5 ...

n.a. Not available

(1.) The sources for total U.S. exports and imports of goods are
based on Census Bureau tabulations of Customs data. The sources
for U.S. parent trade in goods with their foreign affiliates
and U.S. affiliate trade in goods with their foreign parent
groups are BEA's annual surveys of financial and operating data
of U.S. parents, their foreign affiliates, and foreign-owned
U.S. affiliates.

(2.) For 2007-2011, annual data on sales, purchases, costs, and
profits for both bank and nonbank affiliates area included in
the calculation for lines 9-14, lines 28-33, lines 43-47, and
lines 48-52. For 2001-2006, these data for bank affiliates are
unavailable.

(3.) In principle, purchases of services from the United States
should include both purchases from the U.S. parent and
purchases from unaffiliated providers. However, data on
purchases from unaffiliated providers are unavailable, so for
services, line 10 only includes purchases from U.S. parents.

(4.) In principle, purchases of services from abroad should
include both purchases from the foreign parent group and
purchases from unaffiliated providers. However, data on
purchases from unaffiliated providers are unavailable, so for
services, line 29 only includes purchases from the foreign
parent groups.

(5.) In principle, sales by U.S. affiliates to other U.S.
affiliates of the same foreign parent should be subtracted,
but data on these sales are unavailable. Because U.S.
affiliates are generally required to report to BEA on a fully
consolidated basis, most of these sales are eliminated through
consolidation, and the remaining amount is thought to be
negligible.

(6.) Other foreign content (purchases from foreign persons by
foreign affiliates) is overstated to the extent that it
includes U.S. exports that are embodied in the goods and
services purchased by foreign affiliates from foreign
suppliers.

(7.) In principle, the sales exclude the affiliates sales to
other affiliates of their parent. For U.S. affiliates, data
on sales to other affiliates are unavailable, but these sales
are thought to be negligible. (See footnote 5.)

(8.) Other U.S. content (purchases from U.S. persons by U.S.
affiliates) is overstated to the extent that it includes U.S.
imports that are embodied in goods and services purchased by
U.S. affiliates from U.S. suppliers.

(9.) The estimates for 2012 are from the international
transactions accounts, which are published quarterly. Detailed
estimates for 2012 from BEA's annual surveys of U.S. direct
investment abroad and foreign direct investment in the United
States will not be available until the second half of 2014.