An ownership-based framework of the U.S. current account, 1999-2010.

Lowe, Jeffrey H.

This report updates the supplemental ownership-based framework of the current account in the Bureau of Economic Analysis (BEA) U.S. international transactions accounts. This 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--but it highlights the role that multinational companies play in these international transactions. This report includes new summary statistics of the major current-account aggregates for 2010, revised and more detailed statistics for 2009, and revised statistics for 1999-2008. (1)

A technical note that presents information on the conceptual basis of the ownership-based framework follows the highlights of this presentation. (2)

The following are highlights of the updated statistics:

* Net receipts of direct investment income by U.S. parents from sales by their foreign affiliates were $432.0 billion in 2010, up from $356.2 billion in 2009 (table 1). Net payments of direct investment income to foreign parents from sales by their U.S. affiliates were $151.4 billion in 2010, up from $94.0 billion in 2009.

* In 2009 (the latest year for which the detailed statistics are available), the net receipts of $356.2 billion resulted from sales by foreign affiliates of $5,718.9 billion less deductions (such as for labor, capital, and purchased inputs) of $5,362.7 billion. The net payments of $94.0 billion resulted from sales of $3,266.5 billion less deductions of $3,172.4 billion.

* In 2010, U.S. receipts from exports of goods and services and net income receipts of U.S. parents from sales by foreign affiliates were $2,269.6 billion, which consisted of exports of goods and services of $1,837.6 billion and net income receipts of U.S. parents from sales by their foreign affiliates of $432.0 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 $2,489.0 billion, which consisted of imports of goods and services of $2,337.6 billion and net income payments to foreign parents from sales by their U.S. affiliates of $151.4 billion.

* In 2010, the resulting U.S. deficit on goods, services, and net receipts from sales by affiliates (line 41) was $219.4 billion ($2,269.6 billion minus $2,489.0 billion). This deficit was $280.6 billion less than the $500.0 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 because the receipts of income by U.S. parents from sales by their foreign affiliates exceeded the payments of income to foreign parents from sales by their U.S. affiliates.

* The $219.4 billion deficit on goods, services, and net receipts from sales by affiliates in 2010 was $100.3 billion more than the deficit in 2009. The 2010 increase, the first since 2006, resulted from a $118.8 billion increase in the deficit on trade in goods and services that was partly offset by an $18.5 billion increase in the surplus on net receipts from sales by affiliates. The updated statistics incorporate the results of the

2011 annual revision of the U.S. international transactions accounts that features new and improved definitions, classifications, and estimation methodologies, the incorporation of newly available and more complete source data, and updated table presentations. Many of these changes are part of an ongoing multiyear effort to modernize and enhance the international transactions accounts and to align them with international standards. (3) Revisions to the current-account statistics on exports and imports of goods and services and income receipts and payments begin with 1999; revisions to net unilateral current transfers begin with 2000. (4) In addition, the statistics incorporate the preliminary results from the 2009 benchmark survey of U.S. direct investment abroad and the 2009 annual survey of foreign direct investment in the United States, the final results of the 2008 annual surveys of U.S. direct investment abroad and foreign direct investment in the United States, and the final results of the 2007 benchmark survey of foreign direct investment in the United States.

Technical Note

The ownership-based framework was developed in the early 1990s in response to interest in examining international transactions in a way that would reflect the increasing importance of multinational companies in world economies and, particularly, the growing tendency of these companies to use locally established affiliates to deliver goods and services to international markets. (5)

In the conventionally constructed current account, the trade balance reflects only the goods and services that are delivered to international markets through cross-border exports and imports. This balance is an important indicator of U.S. performance in foreign markets; it reflects the net value of the transactions in goods and services between U.S. residents (including companies) and foreign residents. In the international accounts, affiliates are treated as residents in their countries of location rather than in the countries of ownership. As a result, sales of goods and services by foreign affiliates of U.S. companies to other foreign residents and sales by U.S. affiliates of foreign companies to other U.S. residents are not regarded as exports and imports and are therefore excluded from the conventional trade balance.

In the ownership-based framework, a balance is introduced in which net receipts from sales by affiliates are combined with cross-border exports and imports. Specifically, the net receipts that accrue to U.S. parent companies from the sales by their foreign affiliates are combined with cross-border sales to foreigners by U.S. companies (U.S. exports of goods and services), and the net payments that accrue to foreign parent companies from the sales by their U.S. affiliates are combined with cross-border sales to the United States by foreign companies (U.S. imports of goods and services). The difference between these receipts and payments is an indicator of the net effect of United States-foreign commerce on the U.S. economy, and it reflects the perspective that both cross-border trade and sales through affiliates represent methods of active participation in the international markets for goods and services.

Only the net receipts that accrue to the U.S. parent companies (table 1, line 8), not the gross value of sales by their foreign affiliates (line 9), are included in the introduced balance, because only for sales originating in the United States, most of the costs--such as for labor, capital, and purchased inputs--are incurred domestically and accrue to the benefit of the U.S. economy. Similarly, only the net payments that accrue to foreign parent companies (line 27), not the gross value of sales by their U.S. affiliates (line 28), are included, because only for sales originating abroad, most of the costs are incurred abroad and accrue to the benefit of foreign economies. This methodology also eliminates the double-counting that would occur if both the total value of the sales by parents to their affiliates and the subsequent sales by the affiliates to others were included.

Conceptually, the ownership-based framework is fully consistent with the current account in the conventional international transactions accounts, and it can be viewed as a "satellite" of those accounts. (6) (The current-account balance is the same in both sets of accounts.) The grouping of the income from affiliates with cross-border trade in goods and services acknowledges the active role parent companies typically take in managing and coordinating their affiliates' operations. This direct investment income from affiliates differs fundamentally from income on other types of investments. For example, for U.S. direct investment abroad, direct investment income represents U.S. companies' returns on sales that for reasons such as efficiency, transportation costs, or the avoidance of trade barriers are made by foreign affiliates rather than by U.S. parent companies; other investment income represents returns on passive investments, such as on foreign stocks and bonds. (7) Indeed, in many cases, a portion of the income from affiliates may be regarded as a kind of implicit management fee that compensates parent companies for undertaking active roles in the operations of their affiliates.

In addition, the framework provides information on ownership relationships by disaggregating the trade in goods and services into trade between affiliated parties (that is, trade within multinational companies) and trade between unaffiliated parties. It also shows how receipts and payments of direct investment income are derived from the production and sales by affiliates. To highlight the links between the income and the activities that produce it, the income is designated as "resulting from sales by affiliates." In the addenda to table 1, the framework also provides information on the U.S. content and the foreign content of affiliates' sales and on the extent to which such content results from the affiliates' own value added.

(1.) The statistics for 1982-2010 are available on BEA's Web site at www.bea.gov.

(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 the most recent update on the modernization efforts, see Kristy L. Howell and Ned Howenstine, "Modernizing and Enhancing BEA's International Economic Accounts: A Progress Report," SURVEY 91 (May 2011): 26-38.

(4.) For more information on these changes and other revisions to the U.S. international accounts, see Mai-Chi Hoang and Erin M. Whitaker, "Annual Revision of the U.S. International Accounts," SURVEY 91 (July 2011): 47-59.

(5.) Among the calls for more information on ownership was a National Academy of Sciences study panel. See Anne Y. Kester, ed., Behind the Numbers: U.S. Trade in the World Economy, National Research Council, Panel on Foreign Trade Statistics (Washington, DC: National Academy Press, 1992).

(6.) According to the sixth edition of the International Monetary Fund's Balance of Payments and International Investment Position Manual, paragraph 2.43, "[satellite] presentations use the basic framework as a starting point but differ by adding detail or other information, or by rearranging information, to meet particular needs. Use of the basic framework as a starting point increases the ability to relate the topic to other aspects of the economy while maintaining international comparability."

(7.) Direct investment income consists of net receipts of earnings and of interest by parents from their affiliates.

Table 1. Ownership-Based Framework of the U.S. Current Account,
1999-2010

[Billions of dollars]

Line 1999 2000 2001

 1 Exports of goods and
 services and income
 receipts (line 2 plus
 line 16, and ITA table
 1, line 1) 1,262.4 1,425.3 1,300.2
 2 Receipts resulting from
 exports of goods and
 services and sales by
 foreign affiliates 1,098.60 1,224.6 1,136.4
 3 Exports of goods and
 services, total
 (ITA table 1,
 line 2) 967.0 1,072.8 1,007.7
 3a Goods, balance of
 payments basis
 (ITA table 1,
 line 3) 698.2 784.8 731.2
 3b Services (ITA table
 1, line 4) 268.8 288.0 276.5
 4 To unaffiliated
 foreigners 676.7 758.4 705.5
 4a Goods 469.4 535.8 495.1
 4b Services 207.3 222.6 210.4
 5 To affiliated
 foreigners 290.3 314.4 302.3
 5a Goods 228.8 248.9 236.1
 5b Services 61.5 65.4 66.2
 6 To foreign affiliates
 of U.S. parents 218.7 234.1 221.7
 6a Goods 168.9 182.7 170.2
 6b Services 49.8 51.4 51.5
 7 To foreign parent
 groups of U.S.
 affiliates 71.6 80.3 80.6
 7a Goods 59.9 66.2 65.9
 7b Services 11.7 14.1 14.7
 8 Net receipts of direct
 investment income by
 U.S. parents
 resulting from sales
 by their foreign
 affiliates (ITA
 table 1, line 14) 131.6 151.8 128.7
 Sales by foreign
 9 affiliates (1) 2,611.8 2,905.5 2,945.9
 10 Less: Foreign
 affiliates'
 purchases of goods
 and services
 directly from the
 United States 246.3 260.7 249.5
 11 Less: Costs and profits
 accruing to
 foreign persons 1,787.3 1,989.1 2,055.2
 12 Compensation of
 employees of
 foreign affiliates 295.3 310.8 309.7
 13 Other 1,492.0 1,678.4 1,745.6
 14 Less: Sales by foreign
 affiliates to other
 foreign affiliates
 of the same parent 447.5 506.1 514.8
 15 Plus: Bank affiliates
 (net receipts) 1.0 2.2 2.3
 16 Other income receipts 163.8 200.6 163.8
 17 Other private receipts
 on U.S.-owned assets
 abroad (ITA table 1,
 line 15) 156.4 192.4 155.7
 18 U.S. government receipts
 (ITA table 1,
 line 16) 3.2 3.8 3.6
 19 Compensation of
 employees (ITA table
 1, line 17) 4.2 4.4 4.5
 20 Imports of goods and services
 and income payments
 (line 21 plus line
 35, and ITA table 1,
 line 18) 1,513.7 1,782.8 1,632.2
 21 Payments resulting from
 imports of goods and
 services and sales
 by U.S. affiliates 1,283.6 1,506.4 1,382.3
 22 Imports of goods and
 services, total
 (ITA table 1,
 line 19) 1,230.2 1,449.5 1,369.5
 22a Goods, balance of
 payments basis
 (ITA table 1,
 line 20) 1,034.4 1,230.6 1,152.5
 22b Services (ITA table
 1, line 21) 195.8 219.0 217.0
 23 From unaffiliated
 foreigners 797.8 945.1 880.0
 23a Goods 637.5 765.8 703.8
 23b Services 160.3 179.3 176.1
 24 From affiliated
 foreigners 432.3 504.5 489.5
 24a Goods 396.8 464.7 448.6
 24b Services 35.5 39.7 40.9
 25 From foreign
 affiliates of
 U.S. parents 184.8 209.9 201.3
 25a Goods 167.0 191.2 182.2
 25b Services 17.8 18.7 19.1
 26 From foreign parent
 groups of U.S.
 affiliates 247.6 294.6 288.3
 26a Goods 229.9 273.6 266.5
 26b Services 17.7 21.0 21.8
 27 Net payments of direct
 investment income to
 foreign parents
 resulting from sales
 by their U.S.
 affiliates (ITA
 table 1, line 31) 53.4 56.9 12.8
 28 Sales by U.S.
 affiliates (2) 2,044.4 2,334.7 2,327.1
 29 Less: U.S. affiliates
 purchases of goods
 and services
 directly from
 abroad 342.7 393.1 369.6
 30 Less: Costs and
 profits accruing
 to U.S. persons 1,651.2 1,888.2 1,946.7
 31 Compensation of
 employees of U.S.
 affiliates 292.7 332.2 344.7
 32 Other 1,358.5 1,556.1 1,601.9
 33 Less: Sales by U.S.
 affiliates to other
 U.S. affiliates of
 the same parent (3) n.a. n.a. n.a.
 34 Plus: Bank affiliates
 (net payments) 3.0 3.6 2.0
 35 Other income payments 230.1 276.4 249.9
 36 Other private payments
 on foreign-owned
 assets in the United
 States (ITA table 1,
 line 32) 138.1 180.9 159.8
 37 U.S. government payments
 (ITA table 1, line 33) 80.5 84.5 78.4
 38 Compensation of employees
 (ITA table 1, line 34) 11.4 11.0 11.7
 39 Unilateral current transfers,
 net (ITA table 1,
 line 35) -50.4 -58.8 -64.6

 Memoranda:
 40 Balance on goods and
 services (line 3 minus
 line 22, and ITA table 1,
 line 74) -263.2 -376.7 -361.8
 41 Balance on goods, services,
 and net receipts from
 sales by affiliates
 (line 2 minus line 21) -185.0 -281.8 -245.9
 42 Balance on current account
 (line 1 minus line 20
 plus line 39, and ITA
 table 1, line 77) -301.7 -416.3 -396.6

 Addenda:
 Source of the content of
 foreign affiliates' sales
 and change in
 inventories: (1)
 43 Sales to nonaffiliates and
 change in inventories,
 total (line 9 minus
 line 14 plus the
 change in inventories) 2,160.6 2,406.8 2,424.0
 44 Foreign content 1,914.3 2,146.1 2,174.5
 45 Value added by foreign
 affiliates of U.S.
 parents 666.7 702.9 683.4
 46 Other foreign
 content (4) 1,247.7 1,443.2 1,491.1
 47 U.S. content 246.3 260.7 249.5

 Source of the content of U.S.
 affiliates' sales and
 change in inventories:
 (2,5)
 48 Sales to non affiliates and
 change in inventories,
 total (line 28 minus
 line 33 plus the
 change in inventories) 2,056.1 2,349.9 2,318.9
 49 U.S. content. 1,713.4 1,956.7 1,949.3
 Value added by U.S.
 affiliates of
 50 foreign parents 457.7 516.7 477.0
 51 Other U.S. content (6) 1,255.7 1,440.1 1,472.3
 52 Foreign content 342.7 393.1 369.6

Line 2002 2003 2004

 1 Exports of goods and
 services and income
 receipts (line 2 plus
 line 16, and ITA table
 1, line 1) 1,263.6 1,345.9 1,578.9
 2 Receipts resulting from
 exports of goods and
 services and sales by
 foreign affiliates 1,126.5 1,209.9 1,413.8
 3 Exports of goods and
 services, total
 (ITA table 1,
 line 2) 980.9 1,023.5 1,163.1
 3a Goods, balance of
 payments basis
 (ITA table 1,
 line 3) 697.4 729.8 822.0
 3b Services (ITA table
 1, line 4) 283.4 293.7 341.2
 4 To unaffiliated
 foreigners 688.0 713.0 822.9
 4a Goods 477.8 497.9 571.2
 4b Services 210.2 215.2 251.6
 5 To affiliated
 foreigners 292.9 310.5 340.3
 5a Goods 219.6 232.0 250.7
 5b Services 73.3 78.5 89.5
 6 To foreign affiliates
 of U.S. parents 204.9 215.3 238.9
 6a Goods 150.6 156.6 170.6
 6b Services 54.3 58.6 68.2
 7 To foreign parent
 groups of U.S.
 affiliates 88.0 95.2 101.4
 7a Goods 69.0 75.3 80.1
 7b Services 19.0 19.9 21.3
 8 Net receipts of direct
 investment income by
 U.S. parents
 resulting from sales
 by their foreign
 affiliates (ITA
 table 1, line 14) 145.6 186.4 250.6
 Sales by foreign
 9 affiliates (2) 2,945.7 3,319.5 3,841.4
 10 Less: Foreign
 affiliates'
 purchases of goods
 and services
 directly from the
 United States 232.8 242.6 264.0
 11 Less: Costs and profits
 accruing to
 foreign persons 2,038.7 2,246.3 2,548.2
 12 Compensation of
 employees of
 foreign affiliates 311.4 338.1 378.6
 13 Other 1,727.3 1,908.2 2,169.6
 14 Less: Sales by foreign
 affiliates to other
 foreign affiliates
 of the same parent 530.0 646.4 780.0
 15 Plus: Bank affiliates
 (net receipts) 1.3 2.3 1.3
 16 Other income receipts 137.1 136.0 165.2
 17 Other private receipts
 on U.S.-owned assets
 abroad (ITA table 1,
 line 15) 129.2 126.5 157.3
 18 U.S. government receipts
 (ITA table 1,
 line 16) 3.3 4.8 3.1
 19 Compensation of
 employees (ITA table
 1, line 17) 4.6 4.7 4.7
 20 Imports of goods and services
 and income payments
 (line 21 plus line
 35, and ITA table 1,
 line 18) 1,655.8 1,793.2 2,119.2
 21 Payments resulting from
 imports of goods and
 services and sales
 by U.S. affiliates 1,441.6 1,588.3 1,868.3
 22 Imports of goods and
 services, total
 (ITA table 1,
 line 19) 1,398.3 1,514.5 1,768.5
 22a Goods, balance of
 payments basis
 (ITA table 1,
 line 20) 1,171.9 1,270.2 1,485.5
 22b Services (ITA table
 1, line 21) 226.4 244.3 283.0
 23 From unaffiliated
 foreigners 894.0 975.4 1,166.2
 23a Goods 712.2 777.8 933.9
 23b Services 181.8 197.6 232.3
 24 From affiliated
 foreigners 504.3 539.1 602.3
 24a Goods 459.8 492.4 551.5
 24b Services 44.6 46.6 50.7
 25 From foreign
 affiliates of
 U.S. parents 202.0 214.1 241.8
 25a Goods 182.0 192.6 218.8
 25b Services 19.9 21.5 23.0
 26 From foreign parent
 groups of U.S.
 affiliates 302.4 324.9 360.4
 26a Goods 277.7 299.8 332.7
 26b Services 24.7 25.2 27.7
 27 Net payments of direct
 investment income to
 foreign parents
 resulting from sales
 by their U.S.
 affiliates (ITA
 table 1, line 31) 43.2 73.8 99.8
 28 Sales by U.S.
 affiliates (2) 2.216.5 2,323.2 2,526.3
 29 Less: U.S. affiliates
 purchases of goods
 and services
 directly from
 abroad 372.8 393.3 437.5
 30 Less: Costs and
 profits accruing
 to U.S. persons 1,802.1 1,858.2 1,993.8
 31 Compensation of
 employees of U.S.
 affiliates 341.9 342.7 351.9
 32 Other 1,460.2 1,515.5 1,641.9
 33 Less: Sales by U.S.
 affiliates to other
 U.S. affiliates of
 the same parent (3) n.a. n.a. n.a.
 34 Plus: Bank affiliates
 (net payments) 1.6 2.2 4.7
 35 Other income payments 214.3 205.0 251.0
 36 Other private payments
 on foreign-owned
 assets in the United
 States (ITA table 1,
 line 32) 127.0 119.1 155.3
 37 U.S. government payments
 (ITA table 1, line 33) 74.9 73.9 82.7
 38 Compensation of employees
 (ITA table 1, line 34) 12.4 12.0 13.0
 39 Unilateral current transfers,
 net (ITA table 1,
 line 35) -65.0 -71.8 -88.2

 Memoranda:
 40 Balance on goods and
 services (line 3 minus
 line 22, and ITA table 1,
 line 74) -417.4 -491.0 -605.4
 41 Balance on goods, services,
 and net receipts from
 sales by affiliates
 (line 2 minus line 21) -315.1 -378.3 -454.5
 42 Balance on current account
 (line 1 minus line 20
 plus line 39, and ITA
 table 1, line 77) -457.2 -519.1 -628.5

 Addenda:
 Source of the content of
 foreign affiliates' sales
 and change in
 inventories: (1)
 43 Sales to non affiliates and
 change in inventories,
 total (line 9 minus
 line 14 plus the
 change in inventories) 2,425.9 2,692.3 3,092.4
 44 Foreign content 2,193.1 2,449.7 2,828.5
 45 Value added by foreign
 affiliates of U.S.
 parents 704.5 808.4 948.9
 46 Other foreign
 content (4) 1,488.6 1,641.3 1,879.6
 47 U.S. content 232.8 242.6 264.0

 Source of the content of U.S.
 affiliates' sales and
 change in inventories:
 (2,5)
 48 Sales to non affiliates and
 change in inventories,
 total (line 28 minus
 line 33 plus the
 change in inventories) 2,214.5 2,326.1 2,543.4
 49 U.S. content. 1,841.7 1,932.7 2,105.9
 Value added by U.S.
 affiliates of
 50 foreign parents 502.7 519.9 563.5
 51 Other U.S. content (6) 1,339.0 1,412.8 1,542.4
 52 Foreign content 372.8 393.3 437.5

Line 2005 2006 2007

 1 Exports of goods and
 services and income
 receipts (line 2 plus line
 16, and ITA table 1, line
 1) 1,824.8 2,144.4 2,488.4
 2 Receipts resulting from
 exports of goods and
 services and sales by
 foreign affiliates 1,582.0 1,784.6 2,025.3
 3 Exports of goods and
 services, total (ITA
 table 1, line 2) 1,287.4 1,459.8 1,654.6
 3a Goods, balance of
 payments basis
 (ITA table 1,
 line 3) 911.7 1,039.4 1,164.0
 3b Services (ITA table
 1, line 4) 375.8 420.4 490.6
 4 To unaffiliated
 foreigners 917.1 1,057.7 1,193.3
 4a Goods 637.9 746.4 836.0
 4b Services 279.3 311.3 357.3
 5 To affiliated
 foreigners 370.3 402.2 461.3
 5a Goods 273.8 293.1 328.0
 5b Services 96.5 109.1 133.3
 6 To foreign
 affiliates of
 U.S. parents 264.7 286.1 321.3
 6a Goods 188.8 200.2 214.1
 6b Services 75.9 85.8 107.2
 7 To foreign parent
 groups of U.S.
 affiliates 105.6 116.1 140.0
 7a Goods 85.1 92.8 113.9
 7b Services 20.6 23.3 26.1
 8 Net receipts of direct
 investment income
 by U.S. parents
 resulting from
 sales by their
 foreign affiliates
 (ITA table 1,
 line 14) 294.5 324.8 370.8
 9 Sales by foreign
 affiliates (1) 4,362.2 4,793.3 5,785.1
 10 Less: Foreign
 affiliates'
 purchases of goods
 and services
 directly from the
 United States 293.1 323.4 363.4
 11 Less: Costs and
 profits accruing
 to foreign persons 2,837.3 3,098.8 3,752.5
 12 Compensation of
 employees of
 foreign affiliates 405.0 436.1 505.7
 13 Other 2,432.3 2,662.7 3,246.8
 14 Less: Sales by foreign
 affiliates to
 other foreign
 affiliates of the
 same parent 937.5 1,040.0 1,298.5
 15 Plus: Bank affiliates
 (net receipts) 0.2 -6.4 ...
 16 Other income receipts 242.8 359.8 463.1
 17 Other private receipts on
 U.S.-owned assets
 abroad (ITA table
 1, line 15) 235.1 352.1 455.4
 18 U.S. government receipts
 (ITA table 1,
 line 16) 2.9 2.7 2.5
 19 Compensation of employees
 (ITA table 1,
 line 17) 4.8 5.0 5.1
 20 Imports of goods and services
 and income payments
 (line 21 plus line 35,
 and ITA table 1,
 line 18) 2,464.8 2,853.5 3,083.6
 21 Payments resulting from
 imports of goods and
 services and sales by
 U.S. affiliates 2,117.4 2,363.9 2,477.5
 22 Imports of goods and
 services, total
 (ITA table 1,
 line 19) 1,996.1 2,213.1 2,351.3
 22a Goods, balance of
 payments basis (ITA
 table 1, line 20) 1,692.4 1,875.1 1,982.8
 22b Services (ITA table
 1, line 21) 303.6 338.0 368.4
 23 From unaffiliated
 foreigners 1,322.9 1,486.1 1,568.6
 23a Goods 1,077.4 1,216.0 1,276.3
 23b Services 245.5 270.0 292.3
 24 From affiliated
 foreigners 673.1 727.0 782.7
 24a Goods 615.0 659.1 706.5
 24b Services 58.2 68.0 76.2
 25 From foreign
 affiliates of
 U.S. parents 270.7 286.1 310.2
 25a Goods 245.0 249.6 267.4
 25b Services 25.7 36.5 42.8
 26 From foreign parent
 groups of U.S.
 affiliates 402.4 440.9 472.6
 26a Goods 370.0 409.5 439.2
 26b Services 32.4 31.5 33.4
 27 Net payments of direct
 investment income
 to foreign parents
 resulting from
 sales by their
 U.S. affiliates

 (ITA table 1,
 line 31) 121.3 150.8 126.2
 28 Sales by U.S.
 affiliates (2) 2,792.5 3,114.5 3,616.2
 29 Less: U.S. affiliates
 purchases of goods
 and services
 directly from
 abroad 495.0 546.0 599.8
 30 Less: Costs and profits
 accruing to U.S.
 persons 2,180.5 2,425.3 2,890.3
 31 Compensation of
 employees of U.S.
 affiliates 365.5 395.9 437.6
 32 Other 1,815.0 2,029.4 2,452.7
 33 Less: Sales by U.S.
 affiliates to other
 U.S. affiliates of
 the same parent (3) n.a. n.a. n.a.
 34 Plus: Bank affiliates
 (net payments) 4.4 7.5 ...
 35 Other income payments 347.4 489.7 606.2
 36 Other private payments on
 foreign-owned assets
 in the United States
 (ITA table 1, line 32) 228.4 338.9 426.8
 37 U.S. government payments
 (ITA table 1, line 33) 104.1 135.2 164.7
 38 Compensation of employees
 (ITA table 1, line 34) 14.9 15.5 14.7
 39 Unilateral current transfers,
 net (ITA table 1,
 line 35) -105.7 -91.5 -115.1

 Memoranda:
 40 Balance on goods and services
 (line 3 minus line 22,
 and ITA table 1, line 74) -708.6 -753.3 -696.7
 41 Balance on goods, services,
 and net receipts from
 sales by affiliates (line
 2 minus line 21) -535.4 -579.2 -452.1
 42 Balance on current account
 (line 1 minus line 20 plus
 line 39, and ITA table 1,
 line 77) -745.8 -800.6 -710.3

 Addenda:
 Source of the content of
 foreign affiliates' sales
 and change in inventories:
 43 Sales to nonaffiliates and
 change in inventories,
 total (line 9 minus
 line 14 plus the change
 in inventories) 3,544.0 3,722.6 4,565.1
 44 Foreign content 3,250.9 3,399.2 4,201.7
 45 Value added by foreign
 affiliates of U.S.
 parents 1,050.0 1,151.1 1,346.1
 46 Other foreign
 content (4) 2,200.9 2,248.1 2,855.6
 47 U.S. content 293.1 323.4 363.4

 Source of the content of
 U.S. affiliates' sales and
 change in inventories: (2,
 5)
 48 Sales to nonaffiliates
 and change in
 inventories, total
 (line 28 minus line
 33 plus the change
 in inventories) 2,814.6 3,138.3 3,613.3
 49 U.S. content 2,319.5 2,592.3 3,013.6
 50 Value added by U.S.
 affiliates of
 foreign parents 611.5 679.7 736.7
 51 Other U.S. content (6) 1,708.0 1,912.6 2,276.8
 52 Foreign content 495.0 546.0 599.8

Line 2008 2009 2010 (7)

 1 Exports of goods and
 services and income
 receipts (line 2 plus line
 16, and ITA table 1, line
 1) 2,656.6 2,174.5 2,500.8
 2 Receipts resulting from
 exports of goods and
 services and sales by
 foreign affiliates 2,256.4 1,931.2 2,269.6
 3 Exports of goods and
 services, total (ITA
 table 1, line 2) 1,842.7 1,575.0 1,837.6
 3a Goods, balance of
 payments basis
 (ITA table 1,
 line 3) 1,307.5 1,069.5 1,288.7
 3b Services (ITA table
 1, line 4) 535.2 505.5 548.9
 4 To unaffiliated
 foreigners 1,353.4 1,114.5 ...
 4a Goods 960.0 749.0 ...
 4b Services 393.5 365.5 ...
 5 To affiliated
 foreigners 489.2 460.5 ...
 5a Goods 347.5 320.5 ...
 5b Services 141.7 140.1 ...
 6 To foreign
 affiliates of
 U.S. parents 339.9 318.4 ...
 6a Goods 227.6 208.9 ...
 6b Services 112.3 109.6 ...
 7 To foreign parent
 groups of U.S.
 affiliates 149.3 142.1 ...
 7a Goods 119.9 111.6 ...
 7b Services 29.4 30.5 ...
 8 Net receipts of direct
 investment income
 by U.S. parents
 resulting from
 sales by their
 foreign affiliates
 (ITA table 1,
 line 14) 413.7 356.2 432.0
 9 Sales by foreign
 affiliates (1) 6,513.2 5,718.9 ...
 10 Less: Foreign
 affiliates'
 purchases of goods
 and services
 directly from the
 United States 380.2 347.5 ...
 11 Less: Costs and
 profits accruing
 to foreign persons 4,285.4 3,733.7 ...
 12 Compensation of
 employees of
 foreign affiliates 535.9 548.7 ...
 13 Other 3,749.5 3,185.0 ...
 14 Less: Sales by foreign
 affiliates to
 other foreign
 affiliates of the
 same parent 1,433.9 1,281.5 ...
 15 Plus: Bank affiliates
 (net receipts) ... ... ...
 16 Other income receipts 400.2 243.3 231.2
 17 Other private receipts on
 U.S.-owned assets
 abroad (ITA table
 1, line 15) 389.9 233.3 224.5
 18 U.S. government receipts
 (ITA table 1,
 line 16) 5.1 4.8 1.5
 19 Compensation of employees
 (ITA table 1,
 line 17) 5.2 5.2 5.3
 20 Imports of goods and services
 and income payments
 (line 21 plus line 35,
 and ITA table 1,
 line 18) 3,207.8 2,427.8 2,835.6
 21 Payments resulting from
 imports of goods and
 services and sales by
 U.S. affiliates 2,670.5 2,050.3 2,489.0
 22 Imports of goods and
 services, total
 (ITA table 1,
 line 19) 2,541.0 1,956.3 2,337.6
 22a Goods, balance of
 payments basis (ITA
 table 1, line 20) 2,137.6 1,575.4 1,934.6
 22b Services (ITA table
 1, line 21) 403.4 380.9 403.0
 23 From unaffiliated
 foreigners 1,712.8 1,247.7 ...
 23a Goods 1,394.6 952.2 ...
 23b Services 318.2 295.4 ...
 24 From affiliated
 foreigners 828.3 708.6 ...
 24a Goods 743.0 623.2 ...
 24b Services 85.2 85.5 ...
 25 From foreign
 affiliates of
 U.S. parents 319.9 269.4 ...
 25a Goods 272.6 222.3 ...
 25b Services 47.3 47.2 ...
 26 From foreign parent
 groups of U.S.
 affiliates 508.3 439.2 ...
 26a Goods 470.4 400.9 ...
 26b Services 37.9 38.3 ...
 27 Net payments of direct
 investment income
 to foreign parents
 resulting from
 sales by their
 U.S. affiliates
 (ITA table 1,
 line 31) 129.4 94.0 151.4
 28 Sales by U.S.
 affiliates (2) 3,887.1 3,266.5 ...
 29 Less: U.S. affiliates
 purchases of goods
 and services
 directly from
 abroad 661.9 545.7 ...
 30 Less: Costs and profits
 accruing to U.S.
 persons 3,095.7 2,626.8 ...
 31 Compensation of
 employees of U.S.
 affiliates 457.2 449.3 ...
 32 Other 2,638.6 2,177.5 ...
 33 Less: Sales by U.S.
 affiliates to other
 U.S. affiliates of
 the same parent (3) n.a. n.a. ...
 34 Plus: Bank affiliates
 (net payments) ... ... ...
 35 Other income payments 537.4 377.5 346.7
 36 Other private payments on
 foreign-owned assets
 in the United States
 (ITA table 1, line 32) 354.6 218.9 196.0
 37 U.S. government payments
 (ITA table 1, line 33) 166.8 144.4 136.1
 38 Compensation of employees
 (ITA table 1, line 34) 15.9 14.2 14.5
 39 Unilateral current transfers,
 net (ITA table 1,
 line 35) -125.9 -123.3 -136.1

 Memoranda:
 40 Balance on goods and services
 (line 3 minus line 22,
 and ITA table 1, line 74) -698.3 -381.3 -500.0
 41 Balance on goods, services,
 and net receipts from
 sales by affiliates (line
 2 minus line 21) -414.0 -119.1 -219.4
 42 Balance on current account
 (line 1 minus line 20 plus
 line 39, and ITA table 1,
 line 77) -677.1 -376.6 -470.9

 Addenda:
 Source of the content of
 foreign affiliates' sales
 and change in inventories:
 43 Sales to nonaffiliates and
 change in inventories,
 total (line 9 minus
 line 14 plus the change
 in inventories) 5,069.7 4,524.7 ...
 44 Foreign content 4,689.5 4,177.3 ...
 45 Value added by foreign
 affiliates of U.S.
 parents 1,466.7 1,341.8 ...
 46 Other foreign
 content (4) 3,222.7 2,835.4 ...
 47 U.S. content 380.2 347.5 ...

 Source of the content of
 U.S. affiliates' sales and
 change in inventories: (2,
 5)
 48 Sales to nonaffiliates
 and change in
 inventories, total
 (line 28 minus line
 33 plus the change
 in inventories) 3,912.5 3,243.1 ...
 49 U.S. content 3,250.6 2,697.4 ...
 50 Value added by U.S.
 affiliates of
 foreign parents 714.8 658.3 ...
 51 Other U.S. content (6) 2,535.8 2,039.1 ...
 52 Foreign content 661.9 545.7 ...

n.a. Not available

(1.) For 2007-2010, annual data for sales, purchases, costs, and
profits for both bank and nonbank foreign affiliates are included in
the calculations for lines 9-14 and lines 43-47. For the years before
2007, these data for bank affiliates are unavailable.

(2.) For 2007-2010, annual data for sales, purchases, costs, and
profits for both bank and nonbank U.S. affiliates are included in
the calculations for lines 28-33 and lines 48-52. For the years before
2007, these data for bank affiliates are unavailable.

(3.) 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 immaterial.

(4.) 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 goods and services purchased by foreign
affiliates from foreign suppliers.

(5.) 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
immaterial. (See footnote 3.)

(6.) 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.

(7.) The estimates for 2010 are from the international transactions
accounts. Detailed estimates for 2010 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 2012.

ITA International transactions accounts