Foreign Sales Corporation Statistics for 1987

Data Release Foreign Sales Corporation Statistics for 1987 Foreign Sales Corporations (FSC's) filed 2,613 income tax returns for Tax Year 1987. A FSC is incorporated in a foreign country or U.S. possession for the purpose of exporting U.S. products. A FSC is entitled to certain tax benefits. In particular, a portion of the "foreign trade income" of a FSC is exempt from U.S. taxation. (Foreign trade income is income attributable to the sale or lease of export property outside the United States and the performance of various types of export services outside the United States.) For 1987, FSC's reported "Schedule P gross receipts" of $84.3 billion and net exempt income of $2.1 billion. (Schedule P gross receipts includes gross receipts that the FSC and its related suppliers earned from transactions with third parties.) FSC's were subject to a total U.S. tax of $0.5 billion on income subject to tax ("taxable income") of $1.3 billion. Most FSC returns for 1987 were filed for companies which exported manufactured products. As indicated in Table 1, returns for FSC's exporting manufactured products accounted for 88 percent of all FSC returns filed. Classified by Schedule P gross receipts, the largest product groups were transportation equipment ($23.2 billion); machinery, except electrical machinery ($13.4 billion); chemicals and allied products ($12.2 billion); and electrical machinery, equipment and supplies ($9.7 billion). Table 2 contains data for FSC returns classified by the country of incorporation of the FSC. A FSC can only be incorporatedin selected foreign countries and U.S. possessions. The largest number of FSC's were incorporated in the U.S. Virgin Islands (65 percent of all FSC's), Guam (15 percent), Jamaica (8 percent), and Barbados (6 percent). When a FSC engagesin a transaction with a related party, the FSC and the related party must allocate the income they receive from the transaction using one of three pricing methods. The three possible pricing methods that can be used are (1) 1.83 percent of gross receipts method (income of the FSC equals 1.83 percent ofreceipts derived from the sale), (2) 23 percent of combined taxable income method (income of the FSC equals 23 percent of the combined taxable income earned from the transaction by both the FSC and the related party) and (3) Internal Revenue Code section 482 method (income of the FSC equals the amount that the FSC can independently justify on the basis of its sales activity). Different pricing methods can be used for different transactions. Table 3 presents data classified by the pricing method used for intercompany transactions. The method most often used was the 23 percent ofcombined taxable income method. Of the 2,324 FSC income tax returns showing the pricing method used for intercompany transactions, 1,412 FSC's (61 percent) reported using only this method. Another 384 FSC's used only the 1.83 percent of gross receipts method (17 percent). Although only 317 FSC's (14 percent) reported using both the combined taxable income and gross receipts methods, these FSC's included many of the larger FSC's, accounting for 61 percent of total gross receipts for all FSC's, as opposed to 26 percent of gross receipts for FSC's using only the combined taxable income method and 10 percent of gross receipts for FSC's using only the gross receipts method. 59 60 Foreign Sales Corporations, 1987 Explanation of Selected Terms for FSC's Statistics I Administrative Pricing Rules.-These rules are the 1.83 percent ofgross receipts method and the 23 percent ofcombined taxable income method. If one of these two administrative pricing rules are not used, then the Code section 482 method must be used. Cost of Goods Sold.-Cost of goods sold, including cost of operations, related to foreign trading gross receipts. For 41 commission FSC's'" the cost of goods sold was generally factored into the commission calculation and therefore is not shown separately in the tables. In addition, cost of goods sold includes cost of goods sold related to the foreign trading gross receipts in excess of $5 million that is calculated by small FSC's. Direct Costs: • • Administrative.-Total'foreign direct costs -related to foreign trade income from transactions in which the administrativepricing rules were used. Nonadministrative.-Total foreign direct costs related to foreign trade income from transactions in which the administrative pricing rules were not,used. Net Exempt Income: *cing rules were -a- Administrative.-=Exempt foreign.trade income from transactions in which the administrative p'n related to that exempt foreign trade income. used, net of deductions 9 Nonadministrative.-Exempt foreign trade incorfie from transactions in which the administrative piicing rules were not used, net of deductions related to that exempt foreign trade income. Net Income.-Total nonexempt income net of all appropriate deductions except the net operating loss and dividendsreceived deductions, including (1) net income attributable to nonexempt foreign trade income from transactions in which the administrative pricing rules were used; (2) net income attributable to nonexempt foreign trade income from transactions in which the administrative pricing rules were not used, reduced by any nontaxable income (i.e., income that is not "effectively connected" with a U.S. trade or business); and (3) net income attributable to non-foreign trade income. 9 • • Administrative.-Net income attributable to nonexempt foreign trade income from transactions in which the administrative pricing rules were used. Nonadministrative.-Net income attributable to nonexempt foreign trade income from transactions in which the administrative pricing rules were not used. Non-foreign trade.-Net income attributable to non-foreign trade income. Schedule P Gross Receipts.-Gross receipts earned by the FSC and related suppliers from transactions with third parties. g Taxable'Income.-LTotal "income net of all deductions, includin' the net operating loss and dividends-received . Yeneral deductions. Taxable income is the same as "income subject to tax" shown in the statistics for U.S. c orporations in g (e.g., in Table 13 of the "Selected 14istorical and Other Data" section of this issue). Foreign Sales Corporations, 1987 Total Foreign Trade Deductions: • 61 Administrative.-Total deductions related to foreign trade income (both exempt and nonexempt) from transactions in which the administrative pricing rules were used. These deductions include foreign direct costs related to foreign trade income from transactions in which the administrative pricing rules were used. Nonadministrative.-Total deductions related to foreign trade income (both exempt and nonexempt) from transactions in which the administrative pricing rules were not used. These deductions include foreign direct costs related to foreign trade income from transactions in which the administrative pricing rules were not used. • Total (Foreign Trade) Income: o Administrative.-Includes both foreign trading gross receipts (or the commission portion of gross receipts) and other nonexempt foreign trade income earned by FSC's from transactions in which the administrative pricing rules were used. Nonadministrative.-Includes both foreign trading gross receipts and other nonexempt foreign trade income earned by FSC's from transactions in which the administrative pricing rules were not used. Total Non-foreign Trade Deductions.-Deductions related to total non-foreign trade income. All Returns of Active Foreign Sales Corporations Jable l.-Assets, Receipts, Deductions, Net Income, Exempt Income and Taxes of FSC by Major Product or Service I, [All figures are estimates based on samples-money amounts are in thousands of dollars] Total Income Major product or service Number of returns Total assets Comm iss ions and accounts receivable (3) 4,579,930 362,589 106,982 30,042 19,810 5,234 11,506 27,169 7,635 22,775 99,291 10,182 1,611 4,217,341 15,680 15,680 131,701 31,104 9,057 35,680 9,342 79,623 62,137 17,430 2,376 813 1,580 62,245 45.684 4,503 4,219 135,704 52,938 9,691 22,076 41.135 9,865 16,678 2,851 5.562 1,071,698 414.890 299,262 148,235 13,039 6,556 42,189 17,448 Total current and long-term liabilities (4) 3,116,065 229,810 59,865 27,006 15,992 12,356 4,483 3,181 16,280 73,906 5,237 177 2,886,255 3,040 3.040 79,438 17,013 3,662 31,078 314 8,220 1,691 5,943 376 27 59 45,751 33,083 3,718 3,702 97.360 43,838 17.499 905 29,050 6,069 7,787 1,482 205 1,047,039 691,482 144,095 98,390 5.643 5.097 33,109 11,346 Sc hedule P Administrative foreign trade (5) $4,280,131 10,545,810 6,309.395 760,702 529,837 395,856 240,489 271,919 299,123 138,498 341,802 279.283 89,142 73,734,321 10,069 10,069 2,500,802 727.170 264,642 209.175 138,988 2,969.015 2,268,159 559,985 181,117 30,397 16,182 930,735 390,693 52,436 36,940 1.569,288 314,995 123,279 578,731 364,218 41,882 146,182 191,020 16,990 133,112 12,209,528 3,624,475 4,157,618 1,898,152 68,856 29,232 496,774 214,098 1 (6) 17,629,033 1 943,261 315,949 49.037 28.492 280,174 20,107 39,856 19,748 22,832 97,045 29,981 16.179 16,665,772 837 837 6~8,588 292,830 I 11,195 42,347 40,917 3d5,886 281,209 17,250 , 9,991 '2,435 I 5 34 9 14 3 52 8 8 4 15 11 6 .57 6 47 173 39 16 50 15 8 3 3 1,641 93,567 54,355 4,525 4,231 156,044 53,345 25.891 24.691 41,580 661 9,875 30,510 3,147 18,906 1,337,691 632.280 308,888 173,161 15,698 8,823 43,665 17,508 2.122 1 469.191 I 2117,783 17,166 11,670 263,221 63,364 28,569 88,636 49,742 5.194 27,717 27,673 3,301 20,636 2.307,578 447,010 783,162 603,776 19,128 19.208 92,683 117,809 100,020 100,020 23,597 19,293 4,303 12.817 1,301,753 1,259,250 3,173 8 107 139 81,872 81,730 3.304 7 3,297 725 587 13,571 10,718 83 183 24 1 115 399,716 281,177 13,095 32,957 17 , 177 2,154 13 , 626 9.628 1,649,345 1,027,773 463,970 16 , 169 88 98,731 328 14 ,680 14.398 947 947 108,129 33,386 529 57,797 9 ,628 6,789 8 ,280 1 ,295 5,690 625, 807 61,578 454,474 24,935 3, 805 87 9, 979 8,086 953 4 949 24 47 ,491 44,771 6 1 1,098 75, 124 20,577 3, 151 1,097 164,093 39,825 12,349 60,888 22.447 4 ,427 24,158 10,841 1 ,389 8,129 972 ,008 212 ,452 528,976 46,547 6 ,289 277 55 , 105 12,022 682 682 2,147 150 1.996 2 ,065 11 121 ,848 115 .358 779 8 3 Nor~ administrative foreign trade (7) 2,658,229 314,629 158,662 115,682 9,452 2.343,600 80,546 37.865 Non-foreign trade (8) 206,584 2,406 59 285 63 1,833 31 65 204,179 58,504 38,951 1 70 8,430 Cost of goods sold Direct costs Administrative (10) 1,787,658 227,737 157,916 23, 864 4,363 9,553 6, 261 911 8,679 3,690 6,037 1 , 908 101 1,559,922 7 7 39,609 1,704 2 ,417 11,561 8.035 147 , 729 146,723 906 1 , 196 Total foreign trade deductions Administrative (12) 3,647,521 370,684 184 ,289 29 ,717 12 ,694 15 ,364 10 ,722 1 , 150 10 ,497 14,536 68,168 4 ,815 292 3,276,837 7 7 124 ,165 16 ,401 4, 504 34, 958 13,871 214, 939 206,3153 3,707 4. 715 1,850 Non. administrative (13) 337,894 62,459 54 ,876 5 ,454 31 579 275,435 44 44 1 ,427 880 - administrative No" 1) 108,169 42,060 37.046 4,994 11 66,109 735 735 - (2) All products and services .................................... Nonmanufactured products and services .................... Grains and soybeans ........................................................ :. Cotton ................................................................................. Crops, except cotton, grains and soybeans ....................... Livestock and livestock products ........................................ Fishery products and services ............................................ Metal mining, except iron ores, products and services Chemical and fertilizer mineral products and services . Export manaigemrent e,v,ce . ............................................. so .. Computer ... I ....................................................... Motion picture distribution ............ ..................................... Engineering and architectural services ............................... Manufactured products .............................................. Ordnance and accessories ................................................. Ammunition, except for small arms ................................. Food and kindred products ................................................ Meat products... .............................................................. Canned and preserved fruits, vegetables and seafoods ........................................................................ Grain mill products .......................................................... Beverages ................. ..................................................... Tobacco manufactures ........................................................ Cigarettes ........................................................................ Tobacco stemming and redrying ..................................... Textile mill products ............................................................. Yarn and thread mills ....................................................... Apparel and other finished products made from fabrics and similar materials ......................................................... Lumber and wood products, except furniture .................... Millwork, veneer, plywood, and prefabricated structural wood products .............................................................. Furniture 'and fixtures .......................................................... Office furniture ................................................................. Paper and allied products................................................... Paper ill s mills Pu lp mmili~: -e-x e. i b.ui.l.d. in- g. p a.lper m. -Ili -a.................................... ..c. Paperboard Converted paper ~r~~'p-a-p 'rboard products, except ............ 'e *.......... ............... * boxes Paperboard containers and boxes .................................. * ............. * ..... ....... *-* .... ....................... Building paper and building board mills ......................... Printing ipublishing, and allied products ............................ Perio cals: publishing, printing ...................................... Books .............................................................................. chemicals and allied products ........................................... Industrial inorganic and organic chemicals ...................... Plastic materials, synthetic and other man-made fibers.. Drugs .............................................................................. Soaps, detergents, and toiletpreparations ...................... Paints and allied products ............................................... Gum and wood chemicals .............................................. Agricultural chemicals ..................................................... 2,613 319 12 37 34 33 33 9 33 18 20 32 22 2,294 4 4 147 41 8 9 9 10 3 6 17 8 5,582,757 466,881 142.558 44,074 22,133 18,157 13,868 37,239 9,964 22,876 99,015 16,441 1,677 5,095,876 15,719 15,719 136,727 31,271 9,108 37,228 9,473 80,718 62.274 17,534 2,449 848 (9) 12,264,906 451,184 61,314 356.677 705 7,065 1,648 11,813,722 540.314 296,787 16,612 6,763 - 1 1 1 All Returns of Active Foreign Sales Corporations Table I.-Assets, Receipts, Deductions, Net Income, Exempt income and Taxes of FSC, by Major Product or Service-Continued 'All figures are estimates based on samples-money amounts are in thousands of dollars] Major product or service Total non-foreign trade deductions (14) All products and services .................................... Nortmanufactured products and services .................... .... Grains and soybeans ................................................. Cotton .................................................... ...................... . grains and soybeans ....................... Crops, except coition, I ........... Livestock and livestock pro d ucts ................... I Fishery products and serv ices ............................................ Metal mining, except iron ores, products and services Chemical and fertilizer mineral products and services Export management services ......... ................. ................. Computer software. ............................................................. Motion picture distribution .................................................. Engineering and architectural serv ices ............................... Manufactured products .............................................. Ordnance and accessories ..................... ........................... Ammunition, except for small arms ................................. Food and kindred prod ucts ................................................ Meat products ................................................................. Canned and preserved fruits, vegetables and seatoods ......................................... .......... ....... . Grain mill products ........................................................ ............ ......... Beverages ................................... ....... Tobacco manufactures. ....................... . ................. Cigarettes .......................................................... redrying ..................................... Tobacco stemming and Textile mill products ............................. . ............................. Yarn and thread mills ................. . ................... Apparel and other finished products made from fabrics and similar materials ................................................... Lumber and wood products, except furniture .................... Millwork, veneer, plywood, and prefabricated structural wood products .............................. . ......... __ Furniture and fixtures ......................................................... ......... Office furniture ....................... .. . ........... .... Paper and allied products ................................................... Pulp mills ......................................................................... Paper mills. except building paper m ills .......................... Paperboard mills ......................................................... Converted paper and paperboard products, except boxes ......................................................................... Paperboard containers and boxes ............. .................... Building paper and building board mills ......................... Printing, publishing, and allied products ............................ Periodicals: publishing, printing ...................................... Books ........................................................................... Chemicals and allied products ........................................... Industrial inorganic and organic chemicals ..................... Plastic materials, synthetic and other man-made fibers .. Drugs ............ .............................................. .................. Soaps , detergents , and toilet preparations ...................... .................... ................... Paints and allied products ................ _ ...................... Gum and wood chemicals Agricultural chemicals ...................................................... I 190,439 1,867 23 1 ,788 10 1 188,571 58 ,712 39,394 Net income Administrative (15) 1,188,034 106,870 45,795 6,720 5, 495 762 3, 122 13,218 3,218 2,886 10 ,070 8 ,754 1 ,471 1,081,164 562 562 23 ,669 4,279 2,328 2 , 570 3 , 629 31,634 26,027 4,711 1,640 204 268 30,545 3,302 320 199 28,593 8,188 5, 642 9.652 3, 608 267 1,238 5,855 665 4 ,350 228,531 48,641 88,502 33 ,249 3,770 960 13,071 2 , 455 adm N nadmimetrative (16) 243,749 47,369 29,731 12 ,554 - 22 1 , 230 196,381 -31 -31 3 ,780 3,281 1,261 1 , 261 1,483 1 ,376 107 787 -8 149,947 147,959 44 12 I Non-forsign trade (17) 16,145 538 59 285 40 45 21 65 - 1 15,607 -208 -443 Net exempt income Net income (loss deficit) (18) 1,294,109 118,746 45,856 4,614 1 ,625 13.361 3 , 122 13,218 3,218 2 ,885 10,071 10,048 1 , 470 1,175,362 531 531 24,310 4,185 2 ,328 2,570 3 ,629 31,699 26,027 4 ,711 1 ,725 204 268 32,960 5, 577 320 199 30,220 8,188 7 ,018 9 ,765 3 ,744 267 1,238 6,537 657 4,937 290.435 107,542 88, 585 33, 464 3,768 972 13, 083 2 ,455 Not income Deficit I 1 Taxable income . (21) 1,291,673 118,897 45,856 4 ,665 1,637 13,361 3,122 13,218 3, 218 2, 909 10,069 10,048 1,473 1,172,776 562 562 21,964 4.185 2 ,328 2,570 3.629 31,699 26,027 4 , 711 4 2 2 2 8 8 29 5 10 2 11 1 , 729 204 267 32,962 5 ,577 320 199 30,213 8,188 7,018 9 , 765 3, 738 267 1 , 238 6, 544 665 4,937 290,436 107 ,547 88 ,585 33,445 3,770 984 13 ,083 2,455 (22) 2,006,396 199,971 85,864 12,600 10,303 1,429 6,264 24,783 6, 033 5,411 18,043 16,413 2,768 1,806,424 268 268 44,379 8,022 4,364 4,819 6,805 59,313 48, 799 8,833 3,074 382 502 57,461 6,381 600 373 53,612 1 5 ,352 10.578 18,097 6,764 500 2. 321 10, 978 1 ,247 8,156 422,191 90 ,717 165,684 62,340 7,069 1,802 24,507 4,603 Administrative I jNon -timmisbat (23) 104,534 20,355 12,742 5.380 -9 579 84,179 -13 -13 1,620 1,406 540 540 636 590 46 337 -4 64,263 63,411 19 5 I Total tax (24) 507,111 45,224 17,047 1 ,873 533 5,389 1,274 5,249 1 , 212 1,159 3,664 3,682 595 461,887 259 259 7,913 1,422 868 970 1,384 12,749 10 ,414 2,009 680 72 107 12,900 2,040 123 74 12,123 3 ,282 2,820 3,909 1,513 107 492 2, 366 . 256 1,734 115,820 43 ,063 35,406 13,311 1,499 411 5,228 969 income tax (19) 1,294,919 118,900 45,856 4 ,665 1,637 13,361 3,122 13,218 3,218 2 ,909 10,071 10,046 1.473 1,176,020 562 562 24,330 4,185 2 ,328 2,570 3,629 31,699 26,027 4 , 711 1 , 729 204 268 32,962 5 ,577 320 199 30,222 8,189 7,018 9 ,765 3 ,744 267 1 ,238 6,544 665 4.937 290,465 1 07, 547 88 ,585 33 ,474 3,770 984 13 ,083 2 ,455 (20) 811 153 51 12 24 1 3 657 31 31 20 - (25) 505,028 45,115 17,024 1,873 534 5,389 1.273 5,184 1 , 212 1.159 3,659 3,675 595 459,913 259 259 7.934 1,445 866 970 1,380 12,733 10 ,398 2,009 680 72 107 12,863 2,039 123 74 12,014 3 ,282 2.808 3,903 1,486 107 429 2,364 256 1.732 115,524 42,959 35,288 13,276 1,498 411 5.228 968 6 8,345 139 80,718 80,715 3,160 3,160 35 3,710 3,674 12 2 11 - 1 65 85 1,155 1 ,015 143 7 137 690 587 9,861 7,044 83 171 -2 13 1 - . 0) ca All Returns of Active Foreign Sales Corporations Table l.-Assets, Receipts, Deductions, Net Income, Exempt Income and Taxes of FSC, by Major Product or Service-Continued [All figures are estimates based on samples-money amounts are in thousands of dollars] Total Income CD 41h Major product or service Numbe r of returns Total assets Commissions and accounts recehraltle (3) 24.315 4.420 53,566 1,399 20,366 12.372 78,654 12,131 10,427 89,251 23,956 14,156 339 63 5,181' 960,791 275,620 15,855 10.387 3,769 46.067 12,471 540,160 29,869 544,280 1 l,"6 16,614 8.179 15,659 91,093 230,827 756,415 384.512 348.158 1,543 102,485 30,731 28.141 4,067 12,357 27.1,88 65.428 7,944 Total current wW fortezm ,,W Schedule P Administrative foreign trade (5) 882,387 681,004 597,755 5,239 518,736 248,269 1,060,017 169.182 18,450 1.319.936 207.183 243,621 24,389 5,DOO 157,397 13,356,565 2.970,279 97,270 2,041,420 70,171 444,716 411,470 6,735.710 156,290 9,746,845 312,844 632,826 129,471 88,887 1.580,136 3,884.397 23,206,536 11,982,518 10,608,943 18.002 1,,632,740 291.669 493,066 117,114 395,406 335,484 7 2 7 1 275229 1 ~(6) 68,379 36.560 244,670 ' 460 44,808 21.857 125,099 12,601 18,450 170,086 19,391 45,105 1.387 408 16,619 2,287,366 1,344,783 13.153 100,891 9.287 72,765 17,416 645,200 44,928 1,213,516 17,139 58,889 13.109 5,684 199,599 613,690 8.016.074 297.247 7,652,902 ~1,543 261.367 46,895 90,825 7,273 I 69,476 46.898 172.149 35,548 Nonadministrative foreign trade M 13.307 177,348 46,634 46,634 1 5,194 101 67 2 11,177 47 38 135 9.724 223 167,098 126,342 96.772 31,607 65,164 211,470 53 211,417 30.610 19,372 28 1 885 648 408 240 Non-foreign trade (8), 380 341 99 - cost of goods sold - Direct costs Nor, adindrustimalve (11) 6.925 53 53 TOW foreign trade deductions Administrative (12) 27.418 19.456 10,645 192 24,081 10.147 68.050 1,152 859 59.099 6,753 16,130 20 7 9,464 433,282 84,287 9.587 35,833 6,430 14,349 5,499 246,175 12.671 568.562 7,398 35,198 6,269 3,759 126,915 277,789 344.824 131,362 176,270 222 128,962 36,573 65.219 1,928 9.305 15.937 41,768 2,185 5,182 5,182 N administrative (13) Administrative (10) 9,355 4.375 6.473 134 3.550 215 38,440 217 180 10,509 1,782 3,087 12 240,894 16.834 5,653 19.179 1,186 9.255 1.725 174,716 2,577 107.638 2.986 14,696 3,991 582 6,457 45.151 158.684 67,937 54.124 207 28,500 12.246 9,111 940 725 5,479 9,168 848 (2) Manufactured produCts-Continued Rubber and miscellaneous plastic products ....................... Tires and inner tubes ........... .......................................... Leather and leather products .............................................. Footwear, except rubber .................................................. Stone, clay, glass and concrete products ........................... Glass products, made or purchased glass ..................... Primary metal products ....................................................... Iron and steel foundries ................................................... Rolling, drawing, and extruding of nonferrous metals Fabricated metal products, except ordnance, machinery and transportation equipment ........................................... Cutlery, hand tools, and general hardware ..................... Heating apparatus and plumbing fixtures ....................... Fabricated structural metal products ............................... Screw Machine products ................................................. Metal stampings .............................................................. Machinery, except electrical .................................. Engines and turbines .............. ....................................... Farm machinery and equipment ..................................... Construction, mining, and materials handling equipment .............................. ...................................... Metalworking machinery and equipment ........................ Special industry machinery, except metalworking ........... Office, computing. General industry machinery and equipment ................... and accounting machines ................. Service industry machines .............................................. Electrical machinery, equipment, and supplies .................. Electrical industrial apparatus .......................................... Household appliances ..................................................... Electric lighting and wiring equipment ............................ Radio and television sets, except communication ........... Communication equipment ............................................. Electronic components and accessories ......................... Transportation equipment .................................................... Motor vehicles and motor vehicle equipment.................. Aircraft and parts .................................................... Ship and boat building and repairing ............................. Professional, scientific, and controlling instruments; photographic and optical goods; watches and clocks Engineering, laboratory and scientific equipment ........... Instruments for measuring physical characteristics Optical instruments and lenses ....................................... Surgical, medical, and dental instruments and supplies ......................................................................... Photographic equipment and supplies ........................... Miscellaneous manufactured products and manufactured products not allocable ............................... Toys. amusement, sporting and athletic goods 65 4 23 7 21 16 56 30 4 152 44 32 6 30 9 356 13 16 38 13 23 23 124 35 536 41 17 5 31 55 225 178 63 76 33 175 46 75 8 30 16 216 53 28.961 8.735 60,476 1,591 22,104 12,753 79,273 12,170 10,441 99,942 24,516 16.738 348 66 5.241 1,184,080 446,537 16,777 23,973 4,020 72,802 12,680 541,917 36.781 6",947 11,521 17,123 9,002 15.990 93.997 317,613 915,422 393.147 498,473 1,574 122,480 31,197 29,068 7,372 21,111 33.732 78,596 8.988 (4) (9) 26,135 390,242 16,751 16,751 76.661 32,974 19.913 1,240.125 1,091,924 8,863 17,063 40,475 54,920 23,248 376,445 4.908 6,128 283,960 6,622.026 27,236 6,594.789 291,444 62,709 228,735 121.960 25,561 '14,832 517 49.623 1.125 11,817 6,570 48.905 2,419 8.543 53,610 19,256 . 1,627 9,518 - 9.590 185 46 513 81,630 36,891 9,286 6.549 26,996 - 594.593 275,726 11,680 1,139 452 270 390 70 - 33,130 22.008 417 4,262 6,346 21,491 - 9,367 1,114 48,879 1,889 210,963 23,456 314,372 9.141 6,383 5.982 11,929 33,617 168,380 419.095 81,185 330.686 371 53,545 18.308 2.855 511 3,635 28,236 33,072 4.054 70 6,106 - 15.998 62.786 4,300 58.487 6.106 3,615 3,615 - 89 49 40 605 3 3.662 24 3,638 9,824 All Returns of Active Foreign Sales Corporations Table l.-Assets, Receipts, Deductions, Net Income, Exempt Income and Taxes of FSC, by Major Product or Service-Continued [All figures are estimates based on samples-money amounts are in thousands of dollars] Major product or service Tbtal non.foreign trade deductions (14) Manufactured products-Continued Rubber and miscellaneous plastic products ....................... Tires and inner tubes ... .............. .................................... Leather and leather products .............................................. Footwear. except rubber .................................................. Stone, clay, glass and concrete products ........................... Glass products, made or purchased glass ..................... Primary metal products ....................................................... Iron and steel foundries................................................... Rolling, drawing, and extruding of nonferrous metals Fabricated metal products, except ordnance, machinery and transportation equipment ........................................... Cutlery, hand tools, and general hardware ..................... Heating apparatus and plumbing fixtures ....................... Fabricated structural metal products ............................... Screw machine products ................ I ................................ Metal stampings ..................................... ........................ Machi ery, except electrical.. ............. ........................ Engines and turbines 9 ........... ................................. Farm machinery and equipment ......................... ........... Construction, mining, and materials handling equipment ............................................................ Metalworking machinery and equipment ........................ Special industry machinery, except metalworking ........... General industry machinery and equipment .................. I Office, computing, and accounting machines ................. Service industry machines .............................................. Electrical machinery, equipment, and supplies .................. Electrical industrial apparatus .......................................... Household appliances............................................. Electric lighting and wiring equipment ............... ............ Radio and television sets, except communication ........... Communication equipment .......................... .................. Electronic components and accessories ................ Transportation equipment .................................................... Motor vehicles and motor vehicle equipment ................. I Aircraft and parts ............. ............................................... Ship and boat building and repairing ............................. Professional, scientific, and controlling instruments; photographic and optical goods; watches and clocks Engineering, laboratory and scientific equipment ........... Instruments for measuring physical characteristics Optical instruments and lenses ....................................... Surgical, medical, and dental instruments and supplies ......................................................................... Photographic equipment and supplies .......... ................ Miscellaneous manufactured products and manufactured products not allocable ............................... Toys, amusement, sporting and athletic goods ........... 7 7 4,749 27 53 7 10,092 1 106 8,988 49 18,842 1 2 508 9 9 27 25 2 21 8,993 5,949 3,243 93 7,210 4,073 14,017 3.982 292 21,601 2,542 3,152 475 139 2,489 211,661 53,156 1,240 16,694 994 7,429 4,145 119,690 1,786 157,729 3,378 6,533 2,379 670 25,368 63,917 272,622 59,068 197,057 401 22,155 3,590 9,923 1,940 6,074 627 10,318 2,586 455 1,603 9,665 9,665 17,784 10,418 4 1,601 5,237 3,454 3,463 357 50 308 5,762 20 5,742 73 373 334 99 1 445 74 14 -5 1,085 47 37 29 735 174 530 27 -2 1 377 639 408 231 61 24 -2 40 584 3 9,821 6,283 4,945 93 7,210 4,073 14,018 3,982 292 31,711 12,281 3,166 475 134 2,489 220,112 53,202 1,282 18,324 994 13,401 4,145 119,864 1,786 161,712 3,405 6,534 2,379 668 25,369 67,757 273,618 59,525 197,596 401 22,236 3,590 9,967 1,940 6,072 667 10,976 2,589 9,831 6,283 4,948 97 7,210 4,073 14,018 3,982 292 31,719 12,281 3,166 476 140 2,489 220,275 53,322 1,284 18,337 995 13,401 4,145 119,880 1,786 162,018 3,405 6,534 2,379 670 25,369 68,050 273,635 59,525 197,604 407 22,259 3,590 9,978 1,940 6,084 667 11,007 2,589 9 3 3 8 1 6 163 119 3 14 1 16 306 2 293 17 9 5 22 10 12 31 9,831 6,283 4,948 97 7,210 4,073 14,018 3,982 292 31,719 12,281 3,166 476 140 2,489 219,568 53,322 1,284 17,630 995 13,401 4,145 119,880 1,786 162,018 3,405 6,534 2,379 670 25,369 68,050 273,635 59,525 197,604 407 22,259 3,590 9,978 1,940 6,084 667 10,874 2,589 16,862 11,155 6,080 175 13,518 7,637 26,281 7,467 548 40,177 4,766 5,910 891 261 4.666 381,895 85,483 2,326 31,301 1.863 13,929 7,772 224,415 3,415 224,345 6,334 12,250 4,461 1,256 41,187 83,446 388,157 106,818 269,103 920 38,341 6,732 15,641 3,404 11,389 1,176 18,390 5,216 195 687 4,007 2,581 1,853 38 3,388 1,521 5,496 1,589 117 12,309 4,854 1,252 195 41 976 85,489 21,364 492 7.304 400 4.958 1,590 45,941 700 63,071 1,288 2,610 908 155 10,135 26,199 108,894 23,670 78,712 61 8,713 1.674 3,525 804 2,443 267 3,626 662 4,000 2,575 1,849 37 2,783 1,521 5,482 1,575 117 12,289 4,846 1,250 195 41 976 85.305 21.271 492 7,282 400 4,958 1,587 45,877 700 62,795 1,288 2.608 906 155 9.949 26,178 108,809 23.645 78,671 61 8,375 1,366 3,523 801 2,418 266 3,624 662 Not income Administrative (15) Nona dimmistrative (16) Non-foreign trade (17) Net income (loss deficit) (18) Net income Deficit Taxable income Administrative (1 g) (20) (21) (22) Net exempt income Nonadministrative (23) Total tax Income tax (24) (25) 4,142 4,142 7,658 4,465 2 686 2,281 1,460 1,464 153 21 132 2,469 9 2,461 31 - Note: Detail may not add to total because only selected products and services are included. All Returns of Active Foreign Sales Corporations Table 2.-Assets, Receipts, Deductions, Net Income, Exempt Income and Taxes of FSC, by Country of Incorporation (All figures are estimates based on samples-money amounts are in thousands of dollars) Total income Country Number of returns Direct costs Non-foreign trade Cost of goods sold Administrative adm Nonmistral ive 1) Total foreign trade deductions Administral 've (12) m Noninistrative (13) Total assets Commissions and amounts receivab a Total current and long-term liabilities Schedule P gross receipts Admi ni strative foreign trade (6) Nonad !nistrahve 4 foreign tra e (7) ad (2) (3)_ (4) (5) (9) (10) All-countries, total .............................................. Latin America, total ................................................ Barbados..................................... ................................... Jamaica ........................................................................... Europe, total .......................................................... Netherlands ..................................................................... Asia, total .............................................................. South Korea..................................................................... U.S. possessions, total ........................................... Guam ........................... ... ...................................... 1 II .... ................. I..... U.S. Virgin Islands. : Other U.S. possessions ............................ ....................... Country not stated ................................................. 2,613 367 163 204 51 51 11 11 2,085 380 1.688 17 100 Total non-foreign trade deductions (14) 5,562,757 665,406 326,616 338,790 958,359 958,359 10,526 10,526 3,905,784 932,007 2,960,827 12,950 22,681 4,579,930 3,116,065 337,229 143,069 194,161 726,299 726,299 7,651 7,651 2,036,760 604,010 1,426,531 6,219 8,125 84,280,131 10,056,683 4.673,668 5,383,015 10,260,889 10.260,889 40,315 40,315 17,629,033 1,306,824 789,201 517,623 625,580 625,580 2,658,229 99,111 38,602 60,509 1,481,463 1,481,463 40,315 40,315 998,939 300,249 698,690 38,400 206,584 2,468 1,416 1,052 7,493 7,493 7196,623 142,455 54,052 116 12,264,906 618,742 416,844 201,898 1,141,830 1,141,830 32,049 32,049 10,438,023 8,790,457 1,626,705 20,861 34,262 1,787,658 169,676 54,220 115,456 269,155 269,155 1,347,323 203,701 1,141,064 2,557 1,505 108,169 452 452 48,657 48,657 70 70 58,990 31,733 27,257 - 3,647,621 399,176 184,884 214,291 314,990 314,990 2,922,250 452,466 2,464,901 4,883 11,106 Total tax 337,894 36,121 22,047 14,074 123,165 123,165 5,745 5,745 171,37S 35,473 135,902 1,488 Income tax 642,325 316,810 325,515 700,187 700,187 5,486 5,486 3,217,824 583,923 2,623,065 10,836 14,108 Net income 63,549,649 15,677,694 10) 72,079 16,553,042 46,879,715 5,475,659 29,956 116,89- 1 72,594 Net income (less deficit) 8,935 Net income Net exempt income Non-foreign trade (17) Deficit I (18) (19) (20) (21) (22) (23) (24) (25) Taxable income Admi ni strati ve Country Administrative (15) adm Noninistrative (16) ad M N ninistrative All countries, total .............................................. Latin America, total ................................................ Barbados ......................................................................... Jamaica ........................................................................... Europe, total .......................................................... Netherlands ..................................................................... Asia, total .............................................................. South Korea. ................................................................ U.S. possessions, total ........................................... Guam ............................................................................ _ U.S. Virgin Islands ........................................................... Other U.S. possessions ..................................... Country not stated ................................................. 190,439 1,286 1,245 41 315 315 188,838 141,292 47,546 - 1,188,034 125,176 73,273 51,903 107,968 107,968 952,292 264,167 686,659 1,465 2,699 243,749 10,550 10,795 -244 155,422 155,422 1,765 1,765 74,157 16,730 57,428 1,855 16,145 1,182 17 1 1,01 1 7,179 7,179 7,785 1,163 6,506 116 1,294,109 126,490 73,821 52,669 168,724 168,724 1,765 1,765 , 992,676 272,369 718726 1~580 1 1 1 1 1,294,919 126,710 73,830 52,881 168,735 168,735 1,765 1,765 993,245 272,391 719,273 1,580 4,463 ell 220 9 212 11 11 570 22 548 9 1 1,291,673 1 26,576 73,830 52,746 1 68,028 1 68,028 1,765 1,765 990,842 272,385 716,876 1,580 4,463 1 2,006,396 206,755 110,545 96,210 197,059 197,059 1, 597,352 462,728 1 ,131,877 2,747 5,230 1 104,534 4,521 4,626 -105 66,609 66.609 756 756 31,862 7,170 24,682 1 795 1 507,111 49,914 28,423 21,491 64,390 64,390 508 508 390,904 107,848 282,568 488 1,395 1 505,028 49,836 28,362 21,474 64,245 64,245 Soo 508 389,107 107,639 280,979 488 1,332 4,454 1 1 All Returns of Active Foreign Sales Corporations Table 3.-Assets, Receipts, Deductions, Net Income, Exempt Income and Taxes of FSC, by Intercompany Pricing Method [All figures are estimates based on samples-money amounts are in thousands of dollars] Total income Intercompany pricing method Number of returns Total assets Commi ssions and accounts receivable (3) 4,579,930 4,526,260 227,586 1,505,703 459,671 2,273,121 16,891 16,799 26,489 53,669 Not income Administrative (15) 1,188,034 1,188,154 51,261 403,147 709,857 415 869 22,605 -120 Nonadmmistrative (16) 243,749 Non-foreign trade (17) 16,145 15,622 1,257 3,226 9,584 1,257 74 120 105 523 N et i ncome (loss deficit) (18) 1,294,109 Net income (19) 1,294,919 Deficit Taxable income Ad ministrative (20) 811 (21) 1,291,673 (22) 2,006,396 2,006,610 95,386 718,233 1, 148,200 779 1,629 42,384 -214 Total current andlong-term liabilities (4) 3,116,065 3,087,591 138,802 846,153 767,006 1,306,562 13,253 9,778 6,037 28,474 Schedule P gross receipts (5) 84,280,131 84,244,851 8,103,806 21,702,431 2,606,882 51,270,070 56,951 169,023 335,688 35,280 Administrative foreign trade (6) 17,629,033 17,629,033 877,453 4,399,039 12,217,501 6,894 34,373 93,773 Nonadm!n,strat,ve foreign trade (7) 2,658,229 2,658,229 2,553,084 32,992 15,521 56,632 Non-foreign trade (8) 206,584 205,401 41,596 33,411 127,456 2,626 74 123 116 1,183 Cost of goods sold Direct costs Administrative (10) 1,787,658 1,787,650 92,080 617,832 1,066,876 21 1 194 10,458 8 Net exempt income Nonadministrative (23) 104,534 104,585 102,097 -51 646 191 1,701 -51 Total tax Income tax Nonadministrative (11) 108,169 108,158 77,750 1,674 949 27,785 11 Total foreign trade deductions Administrative (12) 3,647,521 3,647,188 234.580 1,410,260 1,965,424 1,084 7,657 28,182 334 Nqnadministrative (13) 337,894 337,722 300,672 169 4,171 4,160 28,548 172 (1) All returns .......................................................... Returns showing Intercompany pricing method, total ....................................................... 1.83 percent of gross receipts method only .................... 23 percent of combined taxable income method only Section 482 method only ................................ 1.83 and 23 percent methods......................................... 23 percent and section 482 methods . ............................ 1.83 percent and section 482 methods .......................... All three methods ............... _ ........................................... Returns not showing Intercompany pricing method.. 2,613 2,324 384 1.412 188 317 3 15 5 289 Total non-foreign trade deductions (14) All returns .......................................................... Returns showing Intercompany pricing method, total ....................................................... 1.83 percent of gross receipts method only.................... 23 percent of combined taxable income method only Section 482 method only ................................................ 1.83 and 23 percent methods................................... 23 percent and section 482 methods ...................... 1.83 percent and section 482 methods .......................... All three methods ........................ _ ................................. Returns not showing Intercompany pricing method 190,439 (2) 5,562,757 5,499,288 259,296 1,700,063 794,937 2,668,398 19,532 28,643 28,419 63,469 (9) 12,264,906 12,264,906 495,609 1,848,352 1,891,315 7,940,391 31,283 34,941 23,015 - Intercompany pricing method (24) 507,111 506,983 17,871 156,895 40,691 280,993 779 446 9,309 128 (25) 605,028 504,901 17,538 156,663 40,612 279,579 776 445 9,287 127 189,779 40,339 30,185 117,872 1,369 2 11 660 243,871 238,067 -119 1,507 446 3,970 -122 1,293,827 46,216 405,389 104,528 710,995 1,996 1,435 23,267 282 1,294,191 46,335 405.390 104,770 710,997 1,996 1,435 23,267 728 364 1 19 242 2 447 1,290,945 46,307 403,013 1 03,930 7 10,997 1,996 1,435 23,267 728