80294 Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Rules and Regulations 

Issued in Fort Worth, Texas, on December 

10, 2010. 

Lance T. Gant, 

Acting Manager, Rotorcraft Directorate, 

Aircraft Certification Service. 

[FR Doc. 2010–31964 Filed 12–21–10; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Economic Analysis 

15 CFR Part 806 

[Docket No. 100217100–0608–02] 

RIN 0691–AA74 

Direct Investment Surveys: BE–11, 

Annual Survey of U.S. Direct 

Investment Abroad 

AGENCY: Bureau of Economic Analysis, 

Commerce. 

ACTION: Final rule. 

SUMMARY: This final rule amends 

regulations of the Bureau of Economic 

Analysis (BEA), Department of 

Commerce, to set forth the reporting 

requirements for the BE–11, Annual 

Survey of U.S. Direct Investment 

Abroad. BEA conducts the survey 

annually and obtains sample data on 

financial and operating data covering 

the overall operations of U.S. parent 

companies and their foreign affiliates. 

BEA is modifying and deleting items on 

the survey forms and changing the 

reporting criteria. The changes include 

a change in the reporting criteria for 

foreign affiliates with U.S. Parent (U.S. 

Reporter) ownership between 10 and 20 

percent. BEA is also making changes to 

bring the BE–11 forms and instructions 

into conformity with the 2009 BE–10, 

Benchmark Survey of U.S. Direct 

Investment Abroad. 

DATES: This final rule will be effective 

January 21, 2011. 

FOR FURTHER INFORMATION CONTACT: 

David H. Galler, Chief, Direct 

Investment Division (BE–50), Bureau of 

Economic Analysis, U.S. Department of 

Commerce, Washington, DC 20230; 

e-mail David.Galler@bea.gov or phone 

(202) 606–9835. 

SUPPLEMENTARY INFORMATION: On 

September 20, 2010, BEA published a 

notice of proposed rulemaking that set 

forth revised reporting criteria for the 

BE–11, Annual Survey of U.S. Direct 

Investment Abroad (75 FR 57217– 

57220). No comments on the proposed 

rule were received. Thus the proposed 

rule is adopted without change. This 

final rule amends 15 CFR Part 806.14 to 

set forth the reporting requirements for 

the BE–11 annual survey of U.S. direct 

investment abroad. 

BEA, U.S. Department of Commerce, 

conducts the BE–11 survey under the 

authority of the International 

Investment and Trade in Services 

Survey Act (22 U.S.C. 3101–3108), 

hereinafter, ‘‘the Act.’’ Section 4(a) of the 

Act (22 U.S.C. 3103(a)) requires that, 

with respect to United States direct 

investment abroad, the President shall, 

to the extent he deems necessary and 

feasible, conduct a regular data 

collection program to secure current 

information on international capital 

flows and other information related to 

international investment and trade in 

services, including (but not limited to) 

such information as may be necessary 

for computing and analyzing the United 

States’ balance of payments, the 

employment and taxes of United States 

parent companies and their affiliates, 

and the international investment and 

trade in services position of the United 

States. 

The BE–11 survey is a sample survey 

that collects information on a variety of 

measures of the overall operations of 

U.S. parent companies and their foreign 

affiliates, including total assets, sales, 

net income, employment and employee 

compensation, research and 

development expenditures, and exports 

and imports of goods. The sample data 

are used to derive universe estimates in 

nonbenchmark years from similar data 

reported in the BE–10, Benchmark 

Survey of U.S. Direct Investment 

Abroad, which is taken every five years. 

The data are needed to measure the size 

and economic significance of direct 

investment abroad, to measure the 

changes in such investment, and to 

assess their impact on the U.S. and 

foreign economies. The data are 

disaggregated by country and industry 

of the foreign affiliate and by industry 

of the U.S. parent. The BE–11 survey is 

a mandatory annual survey of U.S. 

direct investment abroad conducted by 

BEA under the Act. BEA sends survey 

forms to potential respondents in March 

of each year; responses are due by May 

31. 

Description of Changes 

The changes revise the regulations for 

the BE–11 survey and bring the BE–11 

forms and instructions into conformity 

with the 2009 BE–10, Benchmark 

Survey of U.S. Direct Investment 

Abroad. These revisions include 

changes in reporting thresholds and 

data items collected, as well as changes 

in form design. Several of these 

revisions are part of a larger program to 

align the data collection program for 

multinationals with available resources. 

BEA will also expand the use of 

sampling to help align the data 

collection program with resources. 

Beginning with the 2010 annual 

survey, U.S. Reporters will report data 

on all their foreign affiliates, regardless 

of industry, on one of four foreign 

affiliate forms—BE–11B, BE–11C, BE– 

11D, or BE–11E. Data on foreign 

affiliates of U.S. Reporters that are 

banks, bank holding companies, or 

financial holding companies will be 

collected on the same survey forms as 

data on other foreign affiliates. All U.S. 

Reporters will report data on all 

domestic operations, on a fully 

consolidated basis, on Form BE–11A, 

Report for U.S. Reporter. Also, U.S. 

Reporters with total assets, sales or gross 

operating revenues, or net income less 

than or equal to $300 million will be 

required to report only certain items on 

Form BE–11A. 

Additionally, BEA will require U.S. 

Reporters to file reports annually for 

foreign affiliates in which they own a 10 

to 20 percent voting interest. These 

affiliates, some of which are very large, 

fall under both U.S. and international 

definitions for foreign direct investment 

and must be represented in the 

statistics, but in the past they have been 

required to be reported in the annual 

survey only in the third year following 

a benchmark survey. Annual reporting 

will ensure that the activities of these 

affiliates are accurately reflected in the 

statistics derived from the survey. 

The four foreign affiliate forms are— 

(a) Form BE–11B—report for majorityowned foreign affiliates with total 

assets, sales or gross operating revenues, 

or net income greater than $60 million, 

positive or negative; filing of additional 

items would be required for affiliates 

with assets, sales, or net income greater 

than $300 million, positive or negative; 

(b) Form BE–11C—report for 

minority-owned foreign affiliates with 

total assets, sales or gross operating 

revenues, or net income greater than $60 

million, positive or negative; 

(c) Form BE–11D—schedule for 

foreign affiliates established or acquired 

by the U.S. Reporter during the current 

reporting year with total assets, sales or 

gross operating revenues, or net income 

greater than $25 million, positive or 

negative, but for which no one of these 

items is greater than $60 million, 

positive or negative; and 

(d) Form BE–11E—report for foreign 

affiliates selected by BEA to be reported 

on this form in lieu of Form BE–11B. 

BEA will statistically divide into panels, 

affiliates with total assets, sales or gross 

operating revenues, and net income 

(positive or negative) between $60 

million and $300 million. At the 


emcdonald on DSK2BSOYB1PROD with RULES
Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Rules and Regulations 80295 

direction of BEA, U.S. Reporters will 

alternate reporting these affiliates on 

Form BE–11B and Form BE–11E. 

A Form BE–11B, BE–11C, or BE–11E 

must be filed for a foreign affiliate of the 

U.S. Reporter that owns another nonexempt foreign affiliate even if the 

foreign affiliate parent is otherwise 

exempt. That is, all affiliates upward in 

the chain of ownership must be 

reported. 

In addition to the changes in the 

reporting criteria, BEA adds, combines, 

or deletes some items on the annual 

survey forms. BEA will no longer collect 

selected balance sheet items as separate 

items. BEA also will discontinue 

collecting a breakdown of the number of 

employees and amount of employee 

compensation by occupational 

classification; the composition of 

external finances; and wholesale and 

retail trade items (specifically, the cost 

of goods purchased for resale and 

inventory of goods purchased for 

resale). 

BEA also adds several items to be 

collected in the surveys. First, BEA adds 

an item on Form BE–11C to collect 

information about respondents’ total 

liabilities. BEA also adds an item on 

Form BE–11E to collect property, plant, 

and equipment expenditure 

information, and adds a schedule on 

Form BE–11B to collect a list of foreign 

affiliates in which the affiliate being 

reported has a direct equity interest, but 

which are not fully consolidated into 

the reported foreign affiliate. 

Completion of this list will be required 

only for foreign affiliates with total 

assets, sales or gross operating revenues, 

or net income greater than $300 million 

at the end of, or for, the fiscal year. 

The changes to the BE–11A, U.S. 

Reporter annual survey form, largely 

parallel the above-described changes to 

the foreign affiliate forms. For the BE– 

11A, BEA will no longer collect the 

breakdown of number of employees and 

amount of employee compensation by 

occupational classification and no 

longer collect wholesale and retail trade 

items (specifically, the cost of goods 

purchased for resale and inventory of 

goods purchased for resale). BEA also 

adds a question to Form BE–11A asking 

if the Reporter is a bank, and will add 

questions to collect information on 

assets, liabilities, and interest receipts 

and payments that are related to 

banking activities. 

Executive Order 12866 

This final rule has been determined to 

be not significant for purposes of E.O. 

12866. 

Executive Order 13132 

This final rule does not contain 

policies with Federalism implications 

sufficient to warrant preparation of a 

Federalism assessment under E.O. 

13132. 

Paperwork Reduction Act 

The collection of information in this 

final rule has been submitted to the 

Office of Management and Budget 

(OMB) under the Paperwork Reduction 

Act (PRA). OMB approved the 

information collection under control 

number 0608–0053. 

Notwithstanding any other provisions 

of the law, no person is required to 

respond to, nor shall any person be 

subject to a penalty for failure to comply 

with, a collection-of-information subject 

to the requirements of the PRA unless 

that collection displays a currently valid 

OMB control number. 

The BE–11 survey is expected to 

result in the filing of reports from 

approximately 1,750 respondents, 

which is an increase from the 1,550 

respondents that were required to file 

reports for the 2008 BE–11 annual 

survey. The respondent burden for this 

collection of information will vary from 

one company to another, but is 

estimated to average 86 hours per 

response, including time for reviewing 

instructions, searching existing data 

sources, gathering and maintaining the 

data needed, and completing and 

reviewing the collection of information. 

The total respondent burden of the 

survey is estimated at 150,550 hours, 

which is a decrease from the 153,800 

hours estimated for the 2008 BE–11 

annual survey. The reduction in burden 

is due to a decrease in the estimated 

average hours per response that resulted 

from the changes in reporting 

requirements. Written comments 

regarding the burden-hour estimates or 

any other aspects of the collection-ofinformation requirements contained in 

the final rule should be sent both to the 

Bureau of Economic Analysis via mail 

to U.S. Department of Commerce, 

Bureau of Economic Analysis, Office of 

the Chief, Direct Investment Division, 

BE–50, Washington, DC 20230; via 

e-mail at David.Galler@bea.gov; or by 

FAX at (202) 606–5311, and to the 

Office of Management and Budget, 

O.I.R.A., Paperwork Reduction Project 

0608–0053, Attention PRA Desk Officer 

for BEA, via e-mail at 

pbugg@omb.eop.gov, or by FAX at (202) 

395–7245. 

Regulatory Flexibility Act 

The Chief Counsel for Regulation, 

Department of Commerce, has certified 

to the Chief Counsel for Advocacy, 

Small Business Administration (SBA), 

under the provisions of the Regulatory 

Flexibility Act, 5 U.S.C. 605(b), that this 

final rule will not have a significant 

economic impact on a substantial 

number of small entities. The factual 

basis for the certification was published 

in the proposed rule and is not repeated 

here. No comments were received 

regarding the certification or the 

economic impact of the rule more 

generally. No final regulatory flexibility 

analysis was prepared. 

List of Subjects in 15 CFR Part 806 

Economic statistics, Multinational 

corporations, Penalties, Reporting and 

recordkeeping requirements, U.S. 

investment abroad. 

Dated: November 29, 2010. 

J. Steven Landefeld, 

Director, Bureau of Economic Analysis. 

■ For the reasons set forth in the 

preamble, BEA amends 15 CFR Part 806 

as follows: 

PART 806—DIRECT INVESTMENT 

SURVEYS 

■ 1. The authority citation for 15 CFR 

Part 806 continues to read as follows: 

Authority: 5 U.S.C. 301; 22 U.S.C. 3101– 

3108; E.O. 11961 (3 CFR, 1977 Comp., p. 86), 

as amended by E.O. 12318 (3 CFR, 1981 

Comp., p. 173) and E.O. 12518 (3 CFR, 1985 

Comp., p. 348). 

■ 2. Amend § 806.14 by revising 

paragraphs (b)(1) and(f)(3) to read as 

follows: 

806.14 U.S. direct investment 

abroad. 

* * * * * 

(b) * * * 

(1) The affiliates are in the same BEA 

4-digit industry as defined in the Guide 

to Industry Classifications for 

International Surveys, 2007; or 

* * * * * 

(f) * * * 

(3) BE–11—Annual Survey of U.S. 

Direct Investment Abroad: A report, 

consisting of Form BE–11A and Form(s) 

BE–11B, BE–11C, BE–11D and/or BE– 

11E, is required of each U.S. Reporter 

that, at the end of the Reporter’s fiscal 

year, had a foreign affiliate reportable on 

Form BE–11B, BE–11C, BE–11D or BE– 

11E. Forms required and the criteria for 

reporting on each are as follows: 

(i) Form BE–11A (Report for U.S. 

Reporter) must be filed by each U.S. 

person having a foreign affiliate 

reportable on Form BE–11B, BE–11C, 

BE–11D or BE–11E. If the U.S. Reporter 

is a corporation, Form BE–11A is 

required to cover the fully consolidated 

U.S. domestic business enterprise. 


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80296 Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Rules and Regulations 

1 17 CFR 232.312. 

2 17 CFR 232.10 et seq. 

3 15 U.S.C. 77a et seq. 

4 15 U.S.C. 78a et seq. 

5See Asset-Backed Securities, Release No. 33– 

8518 (Dec. 22, 2004) [70 FR 1506] (adopting release 

related to Regulation AB and other new rules and 

forms related to asset-backed securities) 

(hereinafter, the ‘‘2004 Adopting Release’’). 

6 17 CFR 229.1100 et seq. 

7See Form S–1 (17 CFR 239.11) and Form S–3 (17 

CFR 239.13) under the Securities Act. Static pool 

information indicates how groups, or static pools, 

of assets, such as those originated at different 

intervals, are performing over time. By presenting 

comparisons between originations at similar points 

in the assets’ lives, the data allows the detection of 

patterns that may not be evident from overall 

portfolio numbers and thus may reveal a more 

informative picture of material elements of portfolio 

performance and risk. 

8 17 CFR 229.1105. 

(A) If for a U.S. Reporter any one of 

the following three items—total assets, 

sales or gross operating revenues 

excluding sales taxes, or net income 

after provision for U.S. income taxes— 

was greater than $300 million (positive 

or negative) at the end of, or for, the 

Reporter’s fiscal year, the U.S. Reporter 

must file a complete Form BE–11A. It 

must also file a Form BE–11B, BE–11C, 

BE–11D or BE–11E, as applicable, for 

each nonexempt foreign affiliate. 

(B) If for a U.S. Reporter no one of the 

three items listed in paragraph 

(f)(3)(i)(A) of this section was greater 

than $300 million (positive or negative) 

at the end of, or for, the Reporter’s fiscal 

year, the U.S. Reporter is required to file 

on Form BE–11A only items 1 through 

26 and Part IV. It must also file a Form 

BE–11B, BE–11C, BE–11D, or BE–11E as 

applicable, for each nonexempt foreign 

affiliate. 

(ii) Forms BE–11B, BE–11C, BE–11D, 

and BE–11E (Report for Foreign 

Affiliate). 

(A) Form BE–11B must be reported for 

each majority-owned foreign affiliate, 

whether held directly or indirectly, for 

which any one of the following three 

items—total assets, sales or gross 

operating revenues excluding sales 

taxes, or net income after provision for 

foreign income taxes—was greater than 

$60 million (positive or negative) at the 

end of, or for, the affiliate’s fiscal year, 

unless the foreign affiliate is selected to 

be reported on Form BE–11E. 

(B) Form BE–11C must be reported for 

each minority-owned foreign affiliate, 

whether held directly or indirectly, for 

which any one of the three items listed 

in paragraph (f)(3)(ii)(A) of this section 

was greater than $60 million (positive or 

negative) at the end of, or for, the 

affiliate’s fiscal year. 

(C) Form BE–11D must be reported for 

each majority- and minority-owned 

foreign affiliate, whether held directly 

or indirectly, established or acquired 

during the year for which any one of the 

three items listed in paragraph 

(f)(3)(ii)(A) of this section was greater 

than $25 million (positive or negative), 

but for which no one of these items was 

greater than $60 million (positive or 

negative), at the end of, or for, the 

affiliate’s fiscal year. Form BE–11D is a 

schedule; a U.S. Reporter would submit 

one or more pages of the form 

depending on the number of affiliates 

that are required to be filed on this form. 

(D) Form BE–11E must be reported for 

each foreign affiliate that is selected by 

BEA to be reported on this form in lieu 

of Form BE–11B. BEA statistically 

divides into panels, affiliates for which 

any one of the three items listed in 

paragraph (f)(3)(ii)(A) of this section was 

greater than $60 million (positive or 

negative), but for which no one of these 

items was greater than $300 million 

(positive or negative), at the end of, or 

for, the affiliate’s fiscal year. At the 

direction of BEA, U.S. Reporters would 

alternate reporting these affiliates on 

Form BE–11B and Form BE–11E. 

(iii) Based on the preceding, an 

affiliate is exempt from being reported 

if none of the three items listed in 

paragraph (f)(3)(ii)(A) of this section 

exceeds $60 million (positive or 

negative). However, affiliates that were 

established or acquired during the year 

and for which at least one of the items 

was greater than $25 million but not 

over $60 million must be listed, and key 

items reported, on schedule-type Form 

BE–11D. 

(iv) Notwithstanding paragraph 

(f)(3)(iii) of this section, a Form BE–11B, 

BE–11C, or BE–11E must be filed for a 

foreign affiliate of the U.S. Reporter that 

owns another non-exempt foreign 

affiliate of that U.S. Reporter, even if the 

foreign affiliate parent is otherwise 

exempt. That is, all affiliates upward in 

the chain of ownership must be 

reported. 

* * * * * 

[FR Doc. 2010–32027 Filed 12–21–10; 8:45 am] 

BILLING CODE 3510–06–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 232 

[Release No. 33–9165; File No. S7–18–10] 

RIN 3235–AK70 

Extension of Filing Accommodation for 

Static Pool Information in Filings With 

Respect to Asset-Backed Securities 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Final rule. 

SUMMARY: The Commission is adopting 

an amendment to Rule 312 of 

Regulation S–T to further extend its 

application for eighteen months. Rule 

312 provides a temporary filing 

accommodation for filings with respect 

to asset-backed securities that allows 

static pool information required to be 

disclosed in a prospectus of an assetbacked issuer to be provided on an 

Internet Web site under certain 

conditions. Under this rule, such 

information is deemed to be included in 

the prospectus included in the 

registration statement for the assetbacked securities. As a result of the 

extension, the rule will apply to filings 

with respect to asset-backed securities 

filed on or before June 30, 2012. 

DATES: Effective Date: December 31, 

2010. 

FOR FURTHER INFORMATION CONTACT: Jay 

Knight, Attorney-Adviser, Division of 

Corporation Finance, at (202) 551–3370, 

U.S. Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–3720. 

SUPPLEMENTARY INFORMATION: We are 

adopting an amendment to Rule 312 1 of 

Regulation S–T.2

I. Background and Discussion of the 

Amendment 

In December 2004, we adopted new 

and amended rules and forms to address 

the registration, disclosure and 

reporting requirements for asset-backed 

securities (‘‘ABS’’) under the Securities 

Act of 1933 3 (the ‘‘Securities Act’’) and 

the Securities Exchange Act of 1934 4

(the ‘‘Exchange Act’’).5 As part of this 

rulemaking, we adopted Regulation 

AB,6 a new principles-based set of 

disclosure items forming the basis for 

disclosure with respect to ABS in both 

Securities Act registration statements 

and Exchange Act reports. Compliance 

with the revised rules was phased in; 

full compliance with the revised rules 

became effective January 1, 2006. One of 

the significant features of Regulation AB 

is Item 1105, which requires, to the 

extent material, static pool information 

to be provided in the prospectus 

included in registration statements for 

ABS offerings.7 While the disclosure 

required by Item 1105 depends on 

factors such as the type of underlying 

asset and materiality, the information 

required to be disclosed can be 

extensive. For example, a registrant may 

be required to disclose multiple 

performance metrics in periodic 

increments for prior securitized pools of 

the sponsor for the same asset type in 

the last five years.8


emcdonald on DSK2BSOYB1PROD with RULES