DATA ITEM DEFINITIONS_________________________________ENTERPRISE STATISTICS =>ANNUAL PAYROLL Payroll includes all forms of compensation such as salaries, wages, commissions, bonuses, vacation allowances, sick-leave pay, and the value of payments in kind (e.g., free meals and lodgings) paid during the year to all employees. Tips and gratuities received by employees from patrons and reported to employers are included. For corporations, it includes amounts paid to officers and executives; for unincorporated businesses, it does not include profit or other compensation of proprietors or partners. Payroll is reported before deductions for social security, income tax, insurance, union dues, etc. This definition of payroll is the same as that used by the IRS on form 941. =>COMPANY A company is a business consisting of one domestic establishment or more that the reporting firm specified under its ownership or control at the end of 1992. If a company owned or controlled other companies, all establishments of the subsidiaries are included as part of the owning or controlling company. For the Enterprise Statistics program, the terms company, firm, and enterprise are used interchangeably. =>EMPLOYMENT Employment in the economic census is defined as all employees, full-time and part-time, as reported on establishment payrolls during specified pay periods during 1992. Persons on paid sick leave, paid holidays, and paid vacations are included as employees, as are salaried officers and executives of corporations. However, proprietors and partners of unincorporated businesses are not considered employees. The derivation of the 1992 employment figures varied somewhat among the different economic censuses. For establishments in the mineral, manufacturing, and construction industries, employment represents an annual average of the number of "production workers" on the payroll for any part of the pay periods including the 12th of March, May, August, and November, plus the number of "all other employees" on the payroll during the March 12th pay period. All employment data except that for out-of-scope activities, are based on either data reported on individual establishment report forms or data from IRS form 941 for small employer firms not required to complete a census report. For out-of-scope activities, employment data are developed from the number of employees as of the March 12th pay period reported on the form NC-9901, Report of Organization. =>ENTERPRISE For this report, an enterprise is the same as a "company." See "company" for a detailed definition. =>ENTERPRISE INDUSTRY CATEGORY An enterprise industry category (EIC) is a group of four-digit SIC industries that were specifically designed to relate to enterprises rather than to establishments. It is an adaptation of the four-digit SIC classification system to provide an industrial classification system that is meaningful in expressing consolidated company aggregates of the establishment data collected in the economic censuses. Enterprise industry categories are grouped to form industry divisions representing major sectors of the economy: construction, manufacturing, retail trade, etc. =>ESTABLISHMENTS An establishment in the economic census is defined as a business or industrial unit at a single physical location which produces or distributes goods or performs services. One significant deviation in this establishment concept occurs in the construction industry. Relatively permanent offices that have the responsibility for performing management and other administrative functions for one or more construction projects or sites are classified as operating construction establishments. However, an establishment primarily engaged in general administrative, management, or support functions performed centrally for one or more construction establishments is considered an auxiliary. =>FIRM For this report, "firm" is the same as "company." See "company" for a detailed description. =>LARGE COMPANY A large company is defined as having 500 employees or more. The qualifier of 500 employees is more for practical considerations inherent in the records used to prepare this report, rather than for economic or statistical considerations. The qualifier was chosen because enough large companies exist in most categories to permit publishing considerable data without disclosing the activities of individual companies. =>LEGAL FORM OF ORGANIZATION Legal form of organization is the method used to distinguish each company as an individual proprietorship, partnership, corporation, or other business entity. Each company covered in the 1992 and previous economic censuses was classified into specific legal forms of organization. Individual proprietorships--Unincorporated companies owned by one person. Partnerships--Unincorporated companies owned by two or more persons having financial interest in the business (joint ventures, except corporations, are included as partnerships). Corporations--Companies legally incorporated under State laws including nontax-exempt cooperatives. Other legal forms--Included in this group are cooperatives, estates, receiverships, government-owned liquor stores, etc. All agriculture cooperatives, including nontax-exempt cooperatives, are classified as "other legal forms." =>MANUFACTURERS' SALES BRANCHES AND SALES OFFICES Manufacturers' sales branches and sales offices are wholesale trade establishments that primarily distribute products manufactured by the owning company. In the SIC manual, manufacturers' sales branches and sales offices are classified as wholesale trade operating establishments and are treated that way in the publications of the census of wholesale trade. =>SALES AND RECEIPTS Sales and receipts are defined as the receipts for goods produced or distributed or services provided. Excluded from sales are nonoperating receipts, returns on investments, and interest. Two type of sales and receipts figures were collected in the 1992 Economic Censuses and earlier economic censuses. The first type consists of gross sales and receipts reported by establishments, and included estimated values assigned to intra-company transfers of goods and services among establishments within the same company. The second type consists of net sales and receipts reported by companies (or estimates derived from census establishment data), excluding the values of intra-company transfers among their own establishments. a. Establishment sales and receipts--Establishment sales and receipts are represented by various measures to show the concept of gross dollar volume of activity by establishments covered in the economic censuses. Wholesale trade (including manufacturers' sales branches and sales offices) and retail trade collected data on the "dollar volume of business" for the cash or credit sales of merchandise. Construction industries collected data on "business receipts" to directly reflect the dollar amount of goods sold and work done. Service industries gathered data on "operating receipts" which showed the total of all receipts from customers, patrons, or clients for services rendered and merchandise sold during the year, whether or not payment was received that year. From manufacturing and mineral industries, similar data were collected on "value of shipments" which reflect the net selling values of products. Auxiliaries were asked to report sales to customers outside the company, but to exclude transactions with other establishments of the owning company or sales to customers or receipts for services already reported by other establishments of the owing company. All such data are included under the general term "sales and receipts" in this report. Because of duplication, the aggregates of these establishments' sales and receipts ordinarily exceed a firm's total net sales and receipts, which reflect only commercial transactions with outside customers. For more detailed descriptions of the specific sales and receipts measures used by the divisions covered, see the publications of the 1992 Economic Censuses. b. Company sales and receipts--Some establishments of a multi- establishment company transfer part or all of their products to other establishments of the company for further processing or distribution, rather than shipping them directly to outside customers. Since these intra-company shipments are assigned approximate commercial values (for the basic economic census purpose of measuring gross output by the industry classification of establishments), the gross cumulation of establishment figures usually overstates the actual net sales and receipts of a company, especially those of the larger multiestablishment companies. The overstatement is partially offset by the lack of sales and receipts for establishments out of the scope of the censuses. Sales and receipts data for out-of-scope activities are reported by large companies on form ES-9100, Enterprise Summary Report. Unduplicated net sales and receipts figures for large companies are obtained from form ES-9100. The net figures for small multiestablishment companies are derived by aggregating and comparing the equivalent figures for: (1) the operating establishments of the company (i.e., the value of shipments reported by minerals and manufacturing plants and sales and receipts reported by construction, wholesale, retail, service, transportation, communication and utilities, finance, and insurance, and real estate, establishments), and (2) the manufacturers' sales branches and the auxiliaries. The larger of the two totals is considered the correct one. Many manufacturing companies, who also operated their own sales branches or sales offices, excluded the "markup" between the plant and the sales branch or sales office from their value of shipments. For this reason, the sales and receipts reported by the sales branches are the tabulated sales and receipts figures for the company. For single-establishment companies, sales and receipts data are obtained from establishment report forms or administrative records. =>TYPE OF ORGANIZATION Type of organization refers to the number of establishments operated by a company. A single-establishment company is one with only one establishment engaged in economic activities; a multiestablishment company is one with two or more establishments engaged in such activities. If a company is engaged in two or more distinctly different lines of economic activity (wholesale or retail trade, manufacturing, construction, service, mining, transportation, communication, and utilities, finance, insurance and real estate, etc.) at the same physical location, and separate records can be prepared for each activity, each activity would be classified as a separate establishment. =>AUXILIARY ESTABLISHMENTS Auxiliaries are defined as establishments whose employees are primarily engaged in general and business administration; management; research, development, and testing; warehousing; electronic data processing; and other supporting services performed centrally for other establishments of the same company rather than for other companies or the general public. Each auxiliary reported in the economic censuses was assigned a code based on the standard industrial classification (SIC) of the establishments within the company for which the auxiliary performed its supporting services. These "industry-serviced" codes reflect SIC major group (two-digit) or industry group (three-digit) rather than individual industry (four-digit) classifications, because the auxiliaries of the larger and more industrially diversified companies (which accounted for the bulk of auxiliary activities) typically served establishments classified in more than one industry group or industry. Sales branches and sales offices of manufacturing and mining companies are not classified as auxiliaries but as wholesale trade establishments. Similarly, auxiliaries do not include commercial laboratories engaged in research, development, and testing of products for other business firms on a fee or contract basis; warehouses storing the goods of other firms; or trading stamp redemption centers that are operated for other companies selling the stamps. A census establishment report (form ES-9200) was required for each auxiliary separately located from the establishments it served. A separate report was also requested if the auxiliary activity was carried on at the same location as one of the firm's establishments, provided it served two or more establishments and was not operated as an integral part of the establishment at the same location. GEOGRAPHIC AREAS COVERED (AUXILIARIES) General statistics are presented for auxiliaries for the United States as a whole and each individual State, including the District of Columbia. INDUSTRY CLASSIFICATION OF AUXILIARIES Each auxiliary reported in the economic censuses was assigned a code based on the standard industrial classification (SIC) of the establishments within the company for which the auxiliary performed supporting services. In most instances, these "industry-serviced" codes represented major industry group (two-digit SIC) or industry group (three-digit SIC) classifications, because the auxiliaries of the larger and more industrially diversified companies (which accounted for the bulk of auxiliary activities) typically service establishments classified in more than one census industry group of industry. PRINCIPAL FUNCTION CLASSIFICATION OF AUXILIARIES The principal function of each auxiliary is determined by the distribution of its employees among the functions specified in the 1992 ES-9200 forms, that is, administration; research, development, and testing; warehousing; electronic data processing; sales to customers directly from this location; and other activities (i.e., communication, trucking, repair, etc.). Reports indicating that the largest number of employees were engaged in "sales to customers directly from this location" were usually reclassified, either as manufacturers' sales branches and sales offices or as retail stores. When the auxiliary reported its employees in two or more types of work, the functional category with the largest employment determined the principal function of the establishments. Specifically, each category is defined below; See the Standard Industrial Classification Manual for more detailed information. Central administrative offices are auxiliary establishments primarily engaged in performing management and other general administrative functions and support services centrally for other establishments of the same enterprise. Research, development and testing laboratories are auxiliary establishments primarily engaged in performing laboratory or other physical or biological research, development, and testing for other establishments of the same enterprise. Warehouses are auxiliary establishments primarily engaged in storing raw materials, finished goods, and other products to be used or sold by other establishments of the same enterprise. EMPLOYEES--BY TYPE OF WORK PERFORMED (AUXILIARIES) Employees by type of work performed represents the employment distribution by the following principal functions: administration; research, development, and testing; warehousing; trucking; communication; repair service; electronic data processing; sales to customers directly from this location; and other activities. When the establishment records did not provide actual employee counts for the functions listed, and estimate was accepted. Employees performing a variety of functions are reported in their "primary" activity during the March 12 pay period or allocated on some other reasonable and consistent basis. (It was on the basis of the distribution of employees by type of work performed that the principal function of the auxiliary was determined as described above.) => AUXILIARY TERMS, MISCELLANEOUS ASSETS, DEPRECIABLE (AUXILIARIES) Depreciable assets are defined as the assets of an auxiliary for which depreciation and amortization accounts are ordinarily maintained. Depreciable assets are comprised of: (a) buildings and structures, (b) machinery and equipment, and are stated at end-of-prior-year and end-of-current-year values. The gross value of such assets represents the acquisition cost (original cost) to the auxiliary. These depreciable assets data include the value of all improvements and new construction in progress but not yet completed at the end of the year. The value of machinery, equipment, buildings, structures, etc., owned by the auxiliary but leased of rented to others is also included. DEPRECIATION (AUXILIARIES) Depreciation is the process of allocating the cost of an asset to the period of benefit. Depreciation charged against assets acquired since the beginning of the year along with depreciation charged against assets sold or retired during the year are components of this category. FRINGE BENEFITS (AUXILIARIES) Fringe benefits are defined as the employer costs for those benefits required by Federal and State law, along with any additional company-funded benefits. HEADQUARTERS (AUXILIARIES) Headquarters auxiliaries refer to the single establishment which serves as a corporate headquarters, executive office or head office of an entire enterprise. (See "Principal Function Classification of Auxiliaries" for a discussion of a similar--but different--term, central administrative offices. INVENTORIES (AUXILIARIES) Inventories are defined as the balance of goods on hand, such as raw materials, supplies, work-in-process, and finished goods and merchandise on hand for resale. The inventory inquiry is designed to collect unduplicated, consolidated information concerning all of the inventories owned by the enterprises which are located withing the United States. Inventories of mulitiestablishment enterprises were reported by the establishment responsible for the inventories, even if these inventories were held at a separate location. Moreover, inventories owned by others but held at the auxiliary, and items not held for resale, were excluded. RESEARCH AND DEVELOPMENT (AUXILIARIES) Research and development performed by the central administrative office or auxiliary includes all costs incurred during the year to support research and development activities: wages and salaries, direct material costs, services and supporting costs, and an appropriate share of depreciation and overhead. It also includes the total amount charged for research and development performed for others on contract. On form ES-9200, the cost of research and development performed is requested by source of funds: (1) Federal contract and subcontract, (2) company's own funds, and (3) non-Federal source. Receipts from Federal and noncompany contracts are also included as sales to customers outside the company. SALES TO CUSTOMERS OUTSIDE THE COMPANY (AUXILIARIES) Sales to customers outside the company include all merchandise sales, receipts for services to customers outside the company, and research and development contracts performed for Federal agencies or other companies by the reporting auxiliary during 1992 . These sales exclude all excise and sales taxes that are paid directly to taxing agencies. Also excluded are transactions with other establishments of the owning company and any sales of receipts reported by other establishments of the owning company on their 1992 census report forms. => AUXILIARY EXPENDITURES AND PURCHASES CAPITAL EXPENDITURES (AUXILIARIES) Capital expenditures are defined as all expenditures made during the year for which depreciation accounts are ordinarily maintained. Expenditures for new additions and alterations to plant, new machinery and equipment used for replacement of additions, and used plant and machinery acquired from others are considered capital expenditures . Expenditures for new plants or machinery under construction that were not yet in operation during the census year, capital leases entered into after January 1, 1992 , and expenditures for machinery rented to others also are included. Capital expenditures do not include expenditures for land and depletable assets of the cost of maintenance and repairs normally charged as current operating expenses. ACCOUNTING AND BOOKKEEPING, PURCHASED (AUXILIARIES) Purchased accounting and bookkeeping services include the cost of services to the central administrative office or auxiliary during a year. COMMUNICATION SERVICES, PURCHASED (AUXILIARIES) Purchased communication services include the cost of services (i.e., telephone, telegraph, data transmission, teletype, ticker tape, photo transmission, facsimile (FAX), and all other related services) to the central administrative office or auxiliary during a year. CONTRACT LABOR, PURCHASED (AUXILIARIES) Purchased contract labor services include the cost of services of contract employees who are not on payroll but are supplied through a contract with another company to perform specific jobs (i.e., temporary help, security, janitorial, clerical, etc.) The company securing the contract labor provides the day-to-day supervision. DATA PROCESSING SERVICES, PURCHASED (AUXILIARIES) Purchased data processing services include the cost of all data processing types of services to the central administrative office or auxiliary during a year. ELECTRICITY, PURCHASED (AUXILIARIES) Purchased electricity costs include the total amount actually paid of payable for electrical energy purchased during the year from other companies or received from other establishments of the owning company. The value of electricity generated and used at the central administrative office or auxiliary is excluded. FUELS, PURCHASED (AUXILIARIES) Purchased fuels is defined as the total amount actually paid or payable during the year for all fuels (e.g., coal, coke, natural and manufactured gas, fuel, oil, liquefied petroleum gas, gasoline, etc.) consumed for heat, power, or the generation of electricity. Gasoline and fuel purchased for highway use was excluded. LEGAL SERVICES, PURCHASED (AUXILIARIES) Legal services include the cost of these services to the central administrative office or auxiliary during a year. REFUSE REMOVAL SERVICES, PURCHASED (AUXILIARIES) Refuse removal services include the cost of these services to the central administrative office or auxiliary during a year. RENTAL PAYMENTS (AUXILIARIES) Rental payments represent all payments made or accrued by a central administrative office or auxiliary during the year for plant and equipment rented or leased from other companies. Capital leases are reported as assets and not as rental or leased payments. REPAIR SERVICES, PURCHASED (AUXILIARIES) Purchased repair services include the total amount paid to outside contractors for repair services for: (a)buildings and structures and (b)machinery and equipment. All noncapitalized repairs were included. Capitalized improvements are excluded, as well as the cost of repairs performed by establishment employees. ###