An ownership-based framework of the U.S. current account, 1998-2007.

Lowe, Jeffrey H.

The Bureau of Economic Analysis (BEA) annually updates its supplemental, ownership-based framework of the current-account portion of the U.S. international transactions accounts. This report presents new summary statistics of the major current-account aggregates for 2007, more detailed statistics for 2006, and revised statistics for 2002-2005. (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 by U.S. parents of direct investment income from the sales by their foreign affiliates were $368.3 billion in 2007, up from $328.5 billion in 2006 (table 1). Net payments to foreign parents of direct investment income from the sales by their U.S. affiliates were $134.4 billion in 2007, down from $144.4 billion in 2006.

* In 2006 (the latest year for which the detailed statistics are available), the net receipts of $328.5 billion consisted of $329.1 billion from nonbank foreign affiliates and -$0.5 billion from bank foreign affiliates. For the parents of nonbank affiliates, the net receipts resulted from sales by foreign affiliates of $4,731.4 billion less deductions of $4,402.3 billion (such as for labor, capital, and purchased inputs). (3) The net payments of $144.4 billion consisted of $136.2 billion by nonbank U.S. affiliates and $8.2 billion by bank U.S. affiliates.

For nonbank U.S. affiliates, the net payments resulted from sales of $3,083.4 billion less deductions of $2,947.3 billion.

* In 2007, receipts from exports of goods and services or sales by foreign affiliates were $2,014.0 billion, which consisted of U.S. exports of goods and services of $1,645.7 billion and net income receipts of U.S. parents from the sales by their foreign affiliates of $368.3 billion. Payments from imports of goods and services or sales by U.S. affiliates were $2,480.4 billion, which consisted of U.S. imports of goods and services of $2,346.0 billion and net income payments to foreign parents from the sales by their U.S. affiliates of $134.4 billion.

* The resulting U.S. deficit on goods, services, and net receipts from sales by affiliates was $466.4 billion in 2007 ($2,014.0 billion minus $2,480.4 billion). This deficit was $233.9 billion less than the $700.3 billion deficit on trade in goods and services in the conventional international accounts framework. The ownership-based deficit 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 $466.4 billion deficit on goods, services, and net receipts from sales by affiliates in 2007 was $102.7 billion less than the deficit in 2006. This was the first decline in the deficit since 2001. The 2007 decrease resulted from a $53.0 billion decrease in the deficit on trade in goods and services and a $49.7 billion increase in the surplus of net receipts from sales by affiliates.

The updated statistics incorporate the results of the 2008 annual revision of the U.S. international transactions accounts that features improved estimating methodologies, the incorporation of newly available source data, and changes in presentation in the tables. (4) As part of the annual revision, services receipts and payments were revised for 2006-2007 to incorporate the results of BEA's benchmark survey of international services for 2006 and the new follow-on quarterly surveys of international services for 2007. Services receipts and payments were also revised for 2004-2005 to incorporate updated source data. In addition, the 2006-2007 statistics on U.S. holdings of, and transactions in, foreign securities and related dividend and interest receipts were improved as a result of the incorporation of the results of the U.S. Treasury Department's recent benchmark survey of securities claims. These accounts were also revised for 2002-2005 to adjust the results from earlier annual surveys. Similarly, the 2006-2007 statistics on foreign holdings of, and transactions in, U.S. securities and related dividend and interest payments were improved as a result of the incorporation of the results of the U.S. Treasury Department's recent annual survey of securities liabilities. Finally, the statistics also incorporate the preliminary results from the 2006 annual surveys of U.S. direct investment abroad and foreign direct investment in the United States, the final results from the 2005 annual surveys of U.S. direct investment abroad and of foreign direct investment in the United States, and the final results of the 2004 benchmark survey of U.S. direct investment abroad.

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. Because in the international accounts, affiliates are treated as resident in their countries of location rather than in the countries of their owners, the sales of goods and services by foreign affiliates of U.S. companies to other foreign residents and 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 trade balance.

In the ownership-based framework, a balance is introduced in which net receipts resulting 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, not the gross value of sales by their foreign affiliates, are included in these calculations, because only for sales originating in the United States are most of the costs--such as for labor, capital, and purchased inputs--incurred domestically and accrued to the benefit of the U.S. economy. Similarly, only the net payments that accrue to foreign parent companies, not the gross value of sales by their U.S. affiliates, are included, because only for sales originating abroad are most of the costs incurred abroad and accrued 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 recognizes the active role of parent companies 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 affiliates in foreign countries 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 most detailed presentation of 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 estimates for 1982-2007 are available on BEA's Web site at www.bea.gov. Under "International," click on "Operations of Multinational Companies" and then look under "Supplemental Estimates" for "Ownership-Based Framework of the U.S. Current Account."

(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.) These detailed statistics can only be provided for nonbank affiliates for 2006 back. Beginning with 2007, these statistics will fully incorporate data for bank affiliates.

(4.) For more information on these changes and other revisions to the U.S. international accounts, see Christopher L. Bach, "Annual Revision of the U.S. International Accounts, 1974-2007," SURVEY 88 (July 2008): 36-52.

(5.) Among those calling 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 international System of National Accounts, satellite accounts augment the central national accounts by "expanding the analytical capacity of national accounting for selected areas ... in a flexible manner, without overburdening or disrupting the central system"; they may introduce additional information, alternative accounting frameworks, or "complementary or alternative concepts," while maintaining links to the central accounts. See Commission of the European Communities, International Monetary Fund, Organisation for Economic Co-operation and Development, United Nations, and World Bank, System of National Accounts, 1993 (Brussels/Luxembourg, New York, Paris, and Washington, DC, 1993): 489.

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

Jeffrey H. Lowe prepared this report.

Table 1. Ownership-Based Framework of the U.S. Current Account,
1998-2007
[Billions of dollars]

Line 1998 1999 2000

 1 Exports of goods and services
 and income receipts
 (ITA table 1, line 1) 1,195.0 1,259.8 1,421.5
 2 Receipts resulting from
 exports of goods and
 services and sales by
 foreign affiliates 1,037.1 1,097.5 1,222.4
 3 Exports of goods and
 services, total (ITA
 table 1, line 2) 933.2 965.9 1,070.6
 3a Goods, balance of
 payments basis (ITA
 table 1, line 3) 670.4 684.0 772.0
 3b Services (ITA table 1,
 line 4) 262.8 281.9 298.6
 4 To unaffiliated
 foreigners 645.1 675.6 756.2
 4a Goods 436.5 455.2 523.0
 4b Services 208.6 220.4 233.2
 5 To affiliated foreigners 288.1 290.3 314.4
 5a Goods 233.9 228.8 248.9
 5b Services 54.2 61.5 65.4
 6 To foreign affiliates
 of U.S. parents 218.8 218.7 234.1
 6a Goods 176.3 168.9 182.7
 6b Services 42.5 49.8 51.4
 7 To foreign parent
 groups of U.S.
 affiliates 69.2 71.6 80.3
 7a Goods 57.6 59.9 66.2
 7b Services 11.7 11.7 14.1
 8 Net receipts by U.S.
 parents of direct
 investment income
 resulting from sales
 by their foreign
 affiliates (ITA table
 1, line 14) 104.0 131.6 151.8
 9 Nonbank affiliates 103.2 130.7 149.6
 10 Sales by foreign
 affiliates 2,370.0 2,611.8 2,905.5
 11 Less: Foreign
 affiliates'
 purchases of goods
 and services
 directly from the
 United States 248.9 246.3 260.7
 12 Less: Costs and
 profits accruing
 to foreign persons 1,601.2 1,787.3 1,989.1
 13 Compensation of
 employees of
 foreign affiliates 263.6 295.3 310.8
 14 Other 1,337.6 1,492.0 1,678.4
 15 Less: Sales by foreign
 affiliates to other
 foreign affiliates
 of the same parent 416.6 447.5 506.1
 16 Bank affiliates 0.7 1.0 2.2
 17 Other income receipts 157.9 162.3 199.1
 18 Other private receipts on
 U.S.-owned assets abroad
 (ITA table 1, line 15) 151.8 156.4 192.4
 19 U.S. Government receipts
 (ITA table 1, line 16) 3.6 3.2 3.8
 20 Compensation of employees
 (ITA table 1, line 17) 2.4 2.7 2.8
 21 Imports of goods and services
 and income payments
 (ITA table 1, line 18) 1,356.9 1,511.0 1,780.3
 22 Payments resulting from
 imports of goods and
 services and sales by
 U.S. affiliates 1,137.7 1,284.4 1,507.3
 23 Imports of goods and
 services, total (ITA
 table 1, line 19) 1,099.3 1,231.0 1,450.4
23a Goods, balance of
 payments basis (ITA
 table 1, line 20) 918.6 1,031.8 1,226.7
23b Services (ITA table 1,
 line 21) 180.7 199.2 223.7
 24 From unaffiliated
 foreigners 710.5 798.6 946.0
24a Goods 557.1 634.9 761.9
24b Services 153.4 163.7 184.0
 25 From affiliated
 foreigners 388.8 432.3 504.5
25a Goods 361.5 396.8 464.7
25b Services 27.3 35.5 39.7
 26 From foreign
 affiliates of U.S.
 parents 168.6 184.8 209.9
26a Goods 156.4 167.0 191.2
26b Services 12.2 17.8 18.7
 27 From foreign parent
 groups of U.S.
 affiliates 220.2 247.6 294.6
27a Goods 205.2 229.9 273.6
27b Services 15.1 17.7 21.0
 28 Net payments to foreign
 parents of direct
 investment income
 resulting from sales
 by their U.S.
 affiliates (ITA table
 1, line 31) 38.4 53.4 56.9
 29 Nonbank affiliates 35.8 50.5 53.3
 30 Sales by U.S.
 affiliates 1,875.5 2,044.4 2,334.7
 31 Less: U.S. affiliates'
 purchases of goods
 and services
 directly from abroad 307.1 342.7 393.1
 32 Less: Costs and profits
 accruing to U.S.
 persons 1,532.5 1,651.2 1,888.2
 33 Compensation of
 employees of U.S.
 affiliates 262.1 292.7 332.2
 34 Other 1,270.4 1,358.5 1,556.1
 35 Less: Sales by U.S.
 affiliates to other
 U.S. affiliates of
 the same parent (2) n.a. n.a. n.a.
 36 Bank affiliates 2.6 3.0 3.6
 37 Other income payments 219.1 226.6 273.0
 38 Other private payments on
 foreign-owned assets in
 the United States
 (ITA table 1, line 32) 128.0 138.1 180.9
 39 U.S. Government payments
 (ITA table 1, line 33) 84.2 80.5 84.5
 40 Compensation of employees
 (ITA table 1, line 34) 7.0 8.0 7.5

 41 Unilateral current transfers,
 net (ITA table 1, line 35) -53.2 -50.4 -58.6

 Memoranda:
 42 Balance on goods and services
 (line 3 minus line 23,
 and ITA table 1, line 74) -166.1 -265.1 -379.8
 43 Balance on goods, services,
 and net receipts from
 sales by affiliates
 (line 2 minus line 22) -100.6 -186.9 -284.9
 44 Balance on current account
 (line 1 minus line 21
 plus line 41, and ITA
 table 1, line 77) -215.1 -301.6 -417.4

 Addenda:
 Source of the content of
 foreign nonbank
 affiliates' sales and
 change in inventories:
 45 Sales to nonaffiliates and
 change in inventories,
 total (line 10 minus
 line 15 plus the
 change in inventories) 1,959.2 2,160.6 2,406.8
 46 Foreign content 1,710.3 1,914.3 2,146.1
 47 Value added by foreign
 affiliates of U.S.
 parents 608.5 666.7 702.9
 48 Other foreign
 content (3) 1,101.8 1,247.7 1,443.2
 49 U.S. content 248.9 246.3 260.7

 Source of the content of
 U.S. nonbank affiliates'
 sales and change in
 inventories: (4)
 50 Sales to nonaffiliates and
 change in inventories,
 total (line 30 minus
 line 35 plus the
 change in inventories) 1,887.2 2,056.1 2,349.9
 51 U.S. content 1,580.1 1,713.4 1,956.7
 52 Value added by U.S.
 affiliates of
 foreign parents 419.8 457.7 516.7
 53 Other U.S. content (5) 1,160.3 1,255.7 1,440.1
 54 Foreign content 307.1 342.7 393.1

Line 2001 2002 2003

 1 Exports of goods and services
 and income receipts
 (ITA table 1, line 1) 1,295.7 1,255.7 1,338.2
 2 Receipts resulting from
 exports of goods and
 services and sales by
 foreign affiliates 1,133.6 1,120.3 1,204.2
 3 Exports of goods and
 services, total (ITA
 table 1, line 2) 1,004.9 974.7 1,017.8
 3a Goods, balance of
 payments basis (ITA
 table 1, line 3) 718.7 682.4 713.4
 3b Services (ITA table 1,
 line 4) 286.2 292.3 304.3
 4 To unaffiliated
 foreigners 702.6 681.8 707.3
 4a Goods 482.6 462.8 481.5
 4b Services 220.0 219.0 225.8
 5 To affiliated foreigners 302.3 292.9 310.5
 5a Goods 236.1 219.6 232.0
 5b Services 66.2 73.3 78.5
 6 To foreign affiliates
 of U.S. parents 221.7 204.9 215.3
 6a Goods 170.2 150.6 156.6
 6b Services 51.5 54.3 58.6
 7 To foreign parent
 groups of U.S.
 affiliates 80.6 88.0 95.2
 7a Goods 65.9 69.0 75.3
 7b Services 14.7 19.0 19.9
 8 Net receipts by U.S.
 parents of direct
 investment income
 resulting from sales
 by their foreign
 affiliates (ITA table
 1, line 14) 128.7 145.6 186.4
 9 Nonbank affiliates 126.3 144.2 184.1
 10 Sales by foreign
 affiliates 2,945.9 2,945.7 3,319.5
 11 Less: Foreign
 affiliates'
 purchases of goods
 and services
 directly from the
 United States 249.5 232.8 242.6
 12 Less: Costs and
 profits accruing
 to foreign persons 2,055.2 2,038.7 2,246.3
 13 Compensation of
 employees of
 foreign affiliates 309.7 311.4 338.1
 14 Other 1,745.6 1,727.3 1,908.2
 15 Less: Sales by foreign
 affiliates to other
 foreign affiliates
 of the same parent 514.8 530.0 646.4
 16 Bank affiliates 2.3 1.3 2.3
 17 Other income receipts 162.1 135.4 134.0
 18 Other private receipts on
 U.S.-owned assets abroad
 (ITA table 1, line 15) 155.7 129.2 126.5
 19 U.S. Government receipts
 (ITA table 1, line 16) 3.6 3.3 4.7
 20 Compensation of employees
 (ITA table 1, line 17) 2.9 2.8 2.8
 21 Imports of goods and services
 and income payments
 (ITA table 1, line 18) 1,629.1 1,652.0 1,789.8
 22 Payments resulting from
 imports of goods and
 services and sales by
 U.S. affiliates 1,382.8 1,441.7 1,588.4
 23 Imports of goods and
 services, total (ITA
 table 1, line 19) 1,370.0 1,398.4 1,514.7
23a Goods, balance of
 payments basis (ITA
 table 1, line 20) 1,148.2 1,167.4 1,264.3
23b Services (ITA table 1,
 line 21) 221.8 231.1 250.4
 24 From unaffiliated
 foreigners 880.5 894.1 975.6
24a Goods 699.6 707.6 771.9
24b Services 180.9 186.5 203.7
 25 From affiliated
 foreigners 489.5 504.3 539.1
25a Goods 448.6 459.8 492.4
25b Services 40.9 44.6 46.6
 26 From foreign
 affiliates of U.S.
 parents 201.3 202.0 214.1
26a Goods 182.2 182.0 192.6
26b Services 19.1 19.9 21.5
 27 From foreign parent
 groups of U.S.
 affiliates 288.3 302.4 324.9
27a Goods 266.5 277.7 299.8
27b Services 21.8 24.7 25.2
 28 Net payments to foreign
 parents of direct
 investment income
 resulting from sales
 by their U.S.
 affiliates (ITA table
 1, line 31) 12.8 43.2 73.8
 29 Nonbank affiliates 10.8 41.7 71.6
 30 Sales by U.S.
 affiliates 2,327.1 2,216.5 2,323.2
 31 Less: U.S. affiliates'
 purchases of goods
 and services
 directly from abroad 369.6 372.8 393.3
 32 Less: Costs and profits
 accruing to U.S.
 persons 1,946.7 1,802.1 1,858.2
 33 Compensation of
 employees of U.S.
 affiliates 344.7 341.9 342.7
 34 Other 1,601.9 1,460.2 1,515.5
 35 Less: Sales by U.S.
 affiliates to other
 U.S. affiliates of
 the same parent (2) n.a. n.a. n.a.
 36 Bank affiliates 2.0 1.6 2.2
 37 Other income payments 246.3 210.3 201.4
 38 Other private payments on
 foreign-owned assets in
 the United States
 (ITA table 1, line 32) 159.8 127.0 119.1
 39 U.S. Government payments
 (ITA table 1, line 33) 78.4 74.9 73.8
 40 Compensation of employees
 (ITA table 1, line 34) 8.1 8.4 8.5

 41 Unilateral current transfers,
 net (ITA table 1, line 35) -51.3 -4.9 -71.8

 Memoranda:
 42 Balance on goods and services
 (line 3 minus line 23,
 and ITA table 1, line 74) -365.1 -423.7 -496.9
 43 Balance on goods, services,
 and net receipts from
 sales by affiliates
 (line 2 minus line 22) -249.2 -321.4 -384.2
 44 Balance on current account
 (line 1 minus line 21
 plus line 41, and ITA
 table 1, line 77) -384.7 -461.3 -523.4

 Addenda:
 Source of the content of
 foreign nonbank
 affiliates' sales and
 change in inventories:
 45 Sales to nonaffiliates and
 change in inventories,
 total (line 10 minus
 line 15 plus the
 change in inventories) 2,424.0 2,425.9 2,692.3
 46 Foreign content 2,174.5 2,193.1 2,449.7
 47 Value added by foreign
 affiliates of U.S.
 parents 683.4 704.5 808.4
 48 Other foreign
 content (3) 1,491.1 1,488.6 1,641.3
 49 U.S. content 249.5 232.8 242.6

 Source of the content of
 U.S. nonbank affiliates'
 sales and change in
 inventories: (4)
 50 Sales to nonaffiliates and
 change in inventories,
 total (line 30 minus
 line 35 plus the
 change in inventories) 2,318.9 2,214.5 2,326.1
 51 U.S. content 1,949.3 1,841.7 1,932.7
 52 Value added by U.S.
 affiliates of
 foreign parents 477.0 502.7 519.9
 53 Other U.S. content (5) 1,472.3 1,339.0 1,412.8
 54 Foreign content 369.6 372.8 393.3

Line 2004 2005 2006

 1 Exports of goods and services
 and income receipts
 (ITA table 1, line 1) 1,574.3 1,819.0 2,142.2
 2 Receipts resulting from
 exports of goods and
 services and sales by
 foreign affiliates 1,411.2 1,578.3 1,785.6
 3 Exports of goods and
 services, total (ITA
 table 1, line 2) 1,160.6 1,283.8 1,457.0
 3a Goods, balance of
 payments basis (ITA
 table 1, line 3) 807.5 894.6 1,023.1
 3b Services (ITA table 1,
 line 4) 353.1 389.1 433.9
 4 To unaffiliated
 foreigners 820.3 913.4 1,050.6
 4a Goods 556.8 620.8 726.8
 4b Services 263.5 292.6 323.8
 5 To affiliated foreigners 340.3 370.3 406.5
 5a Goods 250.7 273.8 296.3
 5b Services 89.5 96.5 110.1
 6 To foreign affiliates
 of U.S. parents 238.9 264.7 289.6
 6a Goods 170.6 188.8 203.4
 6b Services 68.2 75.9 86.3
 7 To foreign parent
 groups of U.S.
 affiliates 101.4 105.6 116.8
 7a Goods 80.1 85.1 93.0
 7b Services 21.3 20.6 23.9
 8 Net receipts by U.S.
 parents of direct
 investment income
 resulting from sales
 by their foreign
 affiliates (ITA table
 1, line 14) 250.6 294.5 328.5
 9 Nonbank affiliates 249.3 294.4 329.1
 10 Sales by foreign
 affiliates 3,841.4 4,362.2 4,731.4
 11 Less: Foreign
 affiliates'
 purchases of goods
 and services
 directly from the
 United States 264.0 293.1 320.8
 12 Less: Costs and
 profits accruing
 to foreign persons 2,548.2 2,837.3 3,046.8
 13 Compensation of
 employees of
 foreign affiliates 378.6 405.0 426.2
 14 Other 2,169.6 2.4 2,620.6
 15 Less: Sales by foreign
 affiliates to other
 foreign affiliates
 of the same parent 780.0 937.5 1,034.7
 16 Bank affiliates 1.3 0.2 -0.5
 17 Other income receipts 163.1 240.7 356.6
 18 Other private receipts on
 U.S.-owned assets abroad
 (ITA table 1, line 15) 157.3 235.1 351.3
 19 U.S. Government receipts
 (ITA table 1, line 16) 3.0 2.7 2.4
 20 Compensation of employees
 (ITA table 1, line 17) 2.8 2.9 2.9
 21 Imports of goods and services
 and income payments
 (ITA table 1, line 18) 2,114.8 2,458.2 2,838.3
 22 Payments resulting from
 imports of goods and
 services and sales by
 U.S. affiliates 1,868.1 2,116.7 2,354.7
 23 Imports of goods and
 services, total (ITA
 table 1, line 19) 1,768.3 1,995.3 2,210.3
23a Goods, balance of
 payments basis (ITA
 table 1, line 20) 1,477.1 1,681.8 1,861.4
23b Services (ITA table 1,
 line 21) 291.2 313.5 348.9
 24 From unaffiliated
 foreigners 1,166.1 1,322.2 1,500.3
24a Goods 925.6 1,066.8 1,219.2
24b Services 240.5 255.4 281.1
 25 From affiliated
 foreigners 602.3 673.1 710.0
25a Goods 551.5 615.0 642.2
25b Services 50.7 58.2 67.8
 26 From foreign
 affiliates of U.S.
 parents 241.8 270.7 286.6
26a Goods 218.8 245.0 252.2
26b Services 23.0 25.7 34.4
 27 From foreign parent
 groups of U.S.
 affiliates 360.4 402.4 423.4
27a Goods 332.7 370.0 390.0
27b Services 27.7 32.4 33.4
 28 Net payments to foreign
 parents of direct
 investment income
 resulting from sales
 by their U.S.
 affiliates (ITA table
 1, line 31) 99.8 121.3 144.4
 29 Nonbank affiliates 95.1 117.0 136.2
 30 Sales by U.S.
 affiliates 2,526.3 2,792.5 3,083.4
 31 Less: U.S. affiliates'
 purchases of goods
 and services
 directly from abroad 437.5 495.0 527.2
 32 Less: Costs and profits
 accruing to U.S.
 persons 1,993.8 2,180.5 2,420.1
 33 Compensation of
 employees of U.S.
 affiliates 351.9 365.5 395.8
 34 Other 1,641.9 1,815.0 2,024.3
 35 Less: Sales by U.S.
 affiliates to other
 U.S. affiliates of
 the same parent (2) n.a. n.a. n.a.
 36 Bank affiliates 4.7 4.4 8.2
 37 Other income payments 246.8 341.6 483.6
 38 Other private payments on
 foreign-owned assets in
 the United States
 (ITA table 1, line 32) 155.3 228.4 339.1
 39 U.S. Government payments
 (ITA table 1, line 33) 82.5 103.9 135.0
 40 Compensation of employees
 (ITA table 1, line 34) 9.0 9.3 9.5

 41 Unilateral current transfers,
 net (ITA table 1, line 35) -84.5 -89.8 -92.0

 Memoranda:
 42 Balance on goods and services
 (line 3 minus line 23,
 and ITA table 1, line 74) -7.7 -711.6 -753.3
 43 Balance on goods, services,
 and net receipts from
 sales by affiliates
 (line 2 minus line 22) -456.9 -538.4 -569.1
 44 Balance on current account
 (line 1 minus line 21
 plus line 41, and ITA
 table 1, line 77) -625.0 -729.0 -788.1

 Addenda:
 Source of the content of
 foreign nonbank
 affiliates' sales and
 change in inventories:
 45 Sales to nonaffiliates and
 change in inventories,
 total (line 10 minus
 line 15 plus the
 change in inventories) 3,092.4 3,544.0 3,650.4
 46 Foreign content 2,828.5 3,250.9 3,329.5
 47 Value added by foreign
 affiliates of U.S.
 parents 948.9 1,050.0 1,142.4
 48 Other foreign
 content (3) 1,879.6 2,200.9 2,187.1
 49 U.S. content 264.0 293.1 320.8

 Source of the content of
 U.S. nonbank affiliates'
 sales and change in
 inventories: (4)
 50 Sales to nonaffiliates and
 change in inventories,
 total (line 30 minus
 line 35 plus the
 change in inventories) 2,543.4 2,814.6 3,106.4
 51 U.S. content 2,105.9 2,319.5 2,579.2
 52 Value added by U.S.
 affiliates of
 foreign parents 563.5 611.5 678.1
 53 Other U.S. content (5) 1,542.4 1,708.0 1,901.1
 54 Foreign content 437.5 495.0 527.2

Line 2007 (1)

 1 Exports of goods and services
 and income receipts
 (ITA table 1, line 1) 2,463.5
 2 Receipts resulting from
 exports of goods and
 services and sales by
 foreign affiliates 2,014.0
 3 Exports of goods and
 services, total (ITA
 table 1, line 2) 1,645.7
 3a Goods, balance of
 payments basis (ITA
 table 1, line 3) 1,148.5
 3b Services (ITA table 1,
 line 4) 497.2
 4 To unaffiliated
 foreigners ...
 4a Goods ...
 4b Services ...
 5 To affiliated foreigners ...
 5a Goods ...
 5b Services ...
 6 To foreign affiliates
 of U.S. parents ...
 6a Goods ...
 6b Services ...
 7 To foreign parent
 groups of U.S.
 affiliates ...
 7a Goods ...
 7b Services ...
 8 Net receipts by U.S.
 parents of direct
 investment income
 resulting from sales
 by their foreign
 affiliates (ITA table
 1, line 14) 368.3
 9 Nonbank affiliates 367.9
 10 Sales by foreign
 affiliates ...
 11 Less: Foreign
 affiliates'
 purchases of goods
 and services
 directly from the
 United States ...
 12 Less: Costs and
 profits accruing
 to foreign persons ...
 13 Compensation of
 employees of
 foreign affiliates ...
 14 Other ...
 15 Less: Sales by foreign
 affiliates to other
 foreign affiliates
 of the same parent ...
 16 Bank affiliates 0.4
 17 Other income receipts 449.5
 18 Other private receipts on
 U.S.-owned assets abroad
 (ITA table 1, line 15) 444.3
 19 U.S. Government receipts
 (ITA table 1, line 16) 2.2
 20 Compensation of employees
 (ITA table 1, line 17) 3.0
 21 Imports of goods and services
 and income payments
 (ITA table 1, line 18) 3,082.0
 22 Payments resulting from
 imports of goods and
 services and sales by
 U.S. affiliates 2,480.4
 23 Imports of goods and
 services, total (ITA
 table 1, line 19) 2,346.0
23a Goods, balance of
 payments basis (ITA
 table 1, line 20) 1,967.9
23b Services (ITA table 1,
 line 21) 378.1
 24 From unaffiliated
 foreigners ...
24a Goods ...
24b Services ...
 25 From affiliated
 foreigners ...
25a Goods ...
25b Services ...
 26 From foreign
 affiliates of U.S.
 parents ...
26a Goods ...
26b Services ...
 27 From foreign parent
 groups of U.S.
 affiliates ...
27a Goods ...
27b Services ...
 28 Net payments to foreign
 parents of direct
 investment income
 resulting from sales
 by their U.S.
 affiliates (ITA table
 1, line 31) 134.4
 29 Nonbank affiliates 140.8
 30 Sales by U.S.
 affiliates ...
 31 Less: U.S. affiliates'
 purchases of goods
 and services
 directly from abroad ...
 32 Less: Costs and profits
 accruing to U.S.
 persons ...
 33 Compensation of
 employees of U.S.
 affiliates ...
 34 Other ...
 35 Less: Sales by U.S.
 affiliates to other
 U.S. affiliates of
 the same parent (2) n.a.
 36 Bank affiliates -0.4
 37 Other income payments 601.6
 38 Other private payments on
 foreign-owned assets in
 the United States
 (ITA table 1, line 32) 426.5
 39 U.S. Government payments
 (ITA table 1, line 33) 165.1
 40 Compensation of employees
 (ITA table 1, line 34) 10.0

 41 Unilateral current transfers,
 net (ITA table 1, line 35) -112.7

 Memoranda:
 42 Balance on goods and services
 (line 3 minus line 23,
 and ITA table 1, line 74) -700.3
 43 Balance on goods, services,
 and net receipts from
 sales by affiliates
 (line 2 minus line 22) 466.4
 44 Balance on current account
 (line 1 minus line 21
 plus line 41, and ITA
 table 1, line 77) -731.2

 Addenda:
 Source of the content of
 foreign nonbank
 affiliates' sales and
 change in inventories:
 45 Sales to nonaffiliates and
 change in inventories,
 total (line 10 minus
 line 15 plus the
 change in inventories) ...
 46 Foreign content ...
 47 Value added by foreign
 affiliates of U.S.
 parents ...
 48 Other foreign
 content (3) ...
 49 U.S. content ...

 Source of the content of
 U.S. nonbank affiliates'
 sales and change in
 inventories: (4)
 50 Sales to nonaffiliates and
 change in inventories,
 total (line 30 minus
 line 35 plus the
 change in inventories) ...
 51 U.S. content ...
 52 Value added by U.S.
 affiliates of
 foreign parents ...
 53 Other U.S. content (5) ...
 54 Foreign content ...

n.a. Not available

(1.) The estimates in this column are from the international
transactions accounts, which are published quarterly Estimates are
not yet available for the items from BEA's 2007 annual survey of
U.S. direct investment abroad and 2007 benchmark survey of foreign
direct investment in the United States. The detailed preliminary
estimates for 2007 will be published in the second half of 2009.

(2.) Conceptually, 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. However, 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.

(3.) Line 48, other foreign content--which equals 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.

(4.) 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 2.)

(5.) Line 53, other U.S. content--which equals 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.

NOTE. Details may not add to totals because of rounding.

ITA International transactions accounts