The glossary below may define terms not included in the main Glossary on census.gov

The main Glossary on census.gov provides official definitions covering all topics, censuses, surveys and programs.

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An affiliate is an organization that is a member of a larger organization as a member, subordinate associate, or branch.

Total annual 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.

n arrangement wherein a manufacturer provides services to the owner of the design, specifications and output produced. Manufacturing involves the mechanical, physical or chemical transformation of materials, substances, or components into new products. The products can be prototypes, semi-finished goods or finished goods.

The contracting company dictates the specifications, designs, or formulas that the contract manufacturer must use in the production of goods. In addition, the contracting company usually controls or limits the production of goods by performing quality control on the input materials or finished goods; reviewing the contracted companies facilities and processes; approving the primary suppliers; and providing selected input materials.

The contract manufacturer provides the facilities and labor and assembles or produces the good, but also may purchase input materials and deliver finished products to customers under the direction of the contractor. The manufacturer can be an unaffiliated company (either domestic or foreign) or a foreign subsidiary of the contracting company. In semiconductor companies, the term for the contracting company is a fabless manufacturer while the contracted company is sometimes referred to as an electronics foundry. In industries such as pharmaceuticals, chemicals, minerals, metals, photographic, paper coatings, ink and paint, and cosmetics may use the terms toll manufacturing, toll processing, tolling, toll conversion, or custom manufacturing. Related terms for this activity include outsourcing, electronic manufacturing services (EMS), Contract Manufacturing Organization (CMO), Contract Development and Manufacturing Organization (CDMO), and Original Design Manufacturer (ODM).

Beginning inventory plus purchases of goods for resale minus ending inventory.

    Include cost of:

• goods sold to foreign parents and foreign subsidiaries;
• goods purchased for resale;
• materials;
• supplies;
• containers and packages that are an integral part of the manufactured goods;
• production worker payroll; and
• production overhead expenses – such as rent, heat, depreciation, taxes, maintenance, labor, supervision and similar expenses that are directly related to the production of goods for sale.

    Exclude cost of:

• non-production worker payroll;
• non-production overhead expenses; and
• all other expenses not directly related to the production of goods for sale.

Domestic refers to the 50 United States and the District of Columbia. This does not include American Samoa, Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, and U. S Virgin Islands.

Sales or billings between domestic reporting units of your company. Most companies make adjustments to eliminate these in consolidated reporting.

The nine-digit taxpayer identification number assigned by the Internal Revenue Service and used by all business organizations and other legal entities to file Federal employment tax returns such as forms 941,943, and Federal income returns such as forms 1065, 1120, 1120S, and 990 series.

Employment

An enterprise (or "company") is a business organization consisting of one or more domestic establishments that were specified under common ownership or control. The enterprise and the establishment are the same for single-establishment firms. Each multi-establishment company forms one enterprise - the enterprise employment and annual payroll are summed from the associated establishments.

Enterprise size designations are determined by the summed employment of all associated establishments. The enterprise size group `0` includes enterprises for which no associated establishments reported paid employees in the mid-March pay period but paid employees at some time during the year.

A single physical location where business is conducted or where services or industrial operations are performed.

Foreign refers to any location outside the 50 United States and the District of Columbia.

is a fee that a person pays to operate a franchise branch of a larger company and enjoy the profits therefrom.

Tangible products produced to provide to a customer:

    Include:

• merchandise;
• supplies;
• raw materials; and
• products or any other item identified by a Harmonized System (HS) code

    Exclude:

• labor; and
• services

Intellectual property includes property implicitly or explicitly protected by copyright laws (e.g., internally developed software, films, television programs, books, recorded musical performances) and industrial property laws (e.g., inventions, industrial designs, integrated circuit topography, trade secrets, patents, trademarks). Most such assets cannot be recognized on a balance sheet when internally generated, since it is very difficult to objectively value intellectual property assets (slightly different rules apply in the case of software). They can, however, be included in a balance sheet if acquired, which allows a more accurate valuation for the asset (that is, the acquisition cost).

Manufacturing involves the mechanical, physical, or chemical transformation of materials, substances, or components into new products. The products can be prototypes, semi finished goods, or finished goods. See contract manufacturing.

The North American Industry Classification System (NAICS) is an industry classification system that groups establishments into industries based on the activities in which they are primarily engaged. It is a comprehensive system covering the entire field of economic activities, producing and nonproducing. There are 20 sectors in NAICS and 1,170 industries in NAICS United States.

Operating revenues and net sales should:

    Include

• excise taxes (such as those on gasoline, liquor, or tobacco) paid by the manufacturer or wholesaler and included in the cost of goods purchased by this company;
• sales of goods and services to foreign firms;
• revenues of discontinued operations;
• sales to a foreign parent firm and its affiliates not owned by your company;
• sales by your company’s domestic operations to its foreign subsidiaries;
• tax-exempt entities should include all types of revenue such as program service revenue, net patient revenue less contractual allowances, merchandise sold, gross contributions, gifts, appropriations, and grants regardless of restrictions, member dues and assessments, revenue from fundraising activities, gross interest, rents, and royalties, dividends, net gains (losses);
• for wholesalers or retailers selling on a commission basis, revenue should be reported on a gross basis (rather than only reporting commissions) plus net sales of any goods sold on your own account; and
• for real estate offices and brokers, you should report the commissions and fees received for arranging the sale of real property owned by others.

    Exclude

• sales generated by your company’s foreign operations.
• domestic intercompany sales
• sales and other taxes collected directly from customers and paid directly to a state, local, or federal tax agency; and
• management fees collected from establishments of your own company (if covered by the company’s reporting units).

Operational status defines the existence or state of the organization. An organization can be categorized as in operation, temporarily or seasonally inactive, ceased operation, sold or leased to another operator, or other. Discontinued operations also have special instructions.

• In operation - The establishment was open and actively conducting business on the December 31st , the last day of the survey year.


• Temporarily or seasonally inactive - Although not conducting business at the end of the survey year, the establishment will eventually reopen and conduct business under the same Employer Identification Number (EIN). Examples include businesses in tourist areas or small college towns that close during the "off-season" or establishments that temporarily close for remodeling.


• Ceased operation - The establishment has gone out of business or closed and does not plan to reopen. Provide the month, day, and year that the establishment ceased operation. Complete all items for the portion of the survey year during which the establishment was in operation.


• Sold or leased to another operator- The establishment was sold or leased to another company or organization. Provide the month, day, and year that the change occurred and indicate the name, address, and EIN of the new owner or operator. Complete all items for the portion of the survey year prior to the change in operator.


• Other, including under construction - The establishment's operational status at the end of the survey year is not accurately described above. Please specify a description of the establishment's operational status in the space provided.


• Discontinued Operations - If your organization discontinued operations before the survey year, complete the operational Status section of the questionnaire for each location (e.g., Closed or Sold) along with the effective date for of the status change. If your organization was in operation for any part of the survey year, a completed questionnaire is required for the portion of the survey year in which your organization was in operation.

Receipts (net of taxes) are defined as the revenue for goods produced, distributed, or services provided, including revenue earned from premiums, commissions and fees, rents, interest, dividends, and royalties. Receipts exclude all revenue collected for local, state, and federal taxes. Receipts are acquired from the economic census data for establishments in industries that are in-scope to the economic census; receipts are acquired from IRS tax data for single-establishment businesses in industries that are out-of-scope to the economic census; payroll-to-receipts ratios are used to estimate receipts for multi-establishment businesses in industries that are out-of-scope to the economic census. Statistics of U.S. Businesses tabulations provide summed establishment receipts, which creates some duplication of receipts for large multi-establishment enterprises. Receipts data are available for years ending in 2 and 7 only.

Royalties are a usage-based payment made by one party (the "licensee") to another (the "licensor") for the right to ongoing use of an asset, sometimes an intellectual property (IP).

Revenue from royalties and license fees includes income earned from the use of intellectual property owned by a company's domestic operations (i.e., located in the 50 states and the District of Columbia) and royalties and license fees paid to a company's domestic operations by foreign subsidiaries. It includes the following types of royalties and license fees:

• Technological or industrial processes - Including patents, trade secrets, and proprietary technology. This category excludes computer software.


• Entertainment, artistic, educational, and literary original works - Including royalties and license fees for rights to perform, broadcast, reproduce, and sell copyrighted materials and other intellectual property such as films, television and radio programs, written works, and musical and other artistic works. This category excludes computer software.


• Software – Including rights to reproduce, distribute, or use software protected by copyright and owned or controlled by the licensor. This category excludes sales of software sold with end-use licenses, as well as custom software and programming services.

A subsidiary is a company that is owned or controlled by another company. Subsidiaries include establishments in which your company owns more than 50 percent of the outstanding voting stock, as well as firms in which your company has the power to direct or cause the direction of the management and policies.

“Trademark" is often used to refer to any of the four types of marks that can be registered with the United States Patent and Trademark Office (USPTO). The two primary types of marks that can be registered with the USPTO are:

• Trademarks - used by their owners to identify goods, that is, physical commodities, which may be natural, manufactured, or produced, and which are sold or otherwise transported or distributed via interstate commerce.


• Service marks - used by their owners to identify services, that is, intangible activities, which are performed by one person for the benefit of a person or persons other than himself, either for pay or otherwise.