1992 Economic Census, Concept Definitions

See also our national statistics from the 1992 Economic Census.

ESTABLISHMENTS

An establishment is a single physical location at which business is conducted. It is not necessarily identical with a company or enterprise, which may consist of one establishment or more. Most economic census data represent a summary of reports for individual establishments rather than companies. For cases where a census report was received, separate informa- tion was obtained for each location where business was conducted. When administrative records of other Federal agencies were used instead of a census report, no information was available on the number of locations operated. Estimates of this number were derived from a sample and are provided in the RC92A2, WC92A2, SC92A2, FC92A2, and UC92A2 files. Each es- tablishment was tabulated according to the physical location at which the business was conducted. The count of establishments represents those in business at any time during 1992. The same files cited above include a comparison of the number of establishments active any time during the year versus the number in business at the end of the year.

When two activities or more were carried on at a single location under a single ownership, all activities generally were grouped together as a single establishment. The entire establishment was classified on the basis of its major activity and all data for it were included in that classification. However, when distinct and separate economic activities (for which different industry classification codes were appropriate) were conducted under the same ownership at a single location, and when conditions prescribed by the SIC manual for recognizing the existence of more than one establishment were met, separate establishment reports for each of the different activities were obtained in the census.

Leased departments are treated as separate establishments and are classified to the kind of business they conduct. For example, a leased department selling shoes within a department store would be considered a separate retail establishment under the "shoe store" classification.

COUNTS OF ESTABLISHMENTS IN THE GEOGRAPHIC AREA SERIES DO NOT INCLUDE "NONEMPLOYERS", I.E., ESTABLISHMENTS WITH NO PAID EMPLOYEES. SEE THE SEPARATE NONEMPLOYER STATISTICS SERIES.

Firms -- A firm is a business organization or entity consisting of one domestic establishment (location) or more under common ownership or control. All establishments of subsidiary firms are included as part of the owning or controlling firm. For the economic censuses, the terms "firm" and "company" are synonymous.

Auxiliary establishments -- Each company included in this census was asked to identify and report separately those auxiliary locations whose primary functions were to manage, administer, service, or support the activities of the other establishments of the company. Data presented in this report does not include auxiliary establishments. Data for auxiliaries which primarily service retail establishments are presented in a subsequent report issued as part of the 1992 Enterprise Statistics reports.

PAID EMPLOYEES FOR PAY PERIOD INCLUDING MARCH 12

Paid employees consist of the full- time and part-time employees, including salaried officers and executives of corporations, who were on the payroll in the pay period including March 12. Included are employees on paid sick leave, paid holidays, and paid vacations; not included are proprietors and partners of unincorporated businesses. The definition of paid employees is the same as that used on IRS form 941.

ANNUAL PAYROLL

Payroll includes all forms of compensation such as salaries, wages, commissions, bonuses, vacation allowances, sick-leave pay, employee contributions to qualified pension plans, 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, payroll includes amounts paid to officers and executives; for unincorporated businesses, its 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.

For mining establishments, the total includes salaries of officers of these establishments, if it is a corporation; it excludes payments to proprietors or partners of an unincorporated concerns.

First quarter payroll

This item consists of payroll, as defined above, paid to persons employed at any time during the quarter January to March 1992.

EXPENSES FOR TAX-EXEMPT SERVICE INDUSTRIES

Expenses recorded for tax-exempt service firms include payroll, employee benefits, interest, rent, taxes, cost of supplies used for operation, depreciation expenses, fees paid for fundraising, contracted or purchased services, and other expenses charged to operations during the census year.

Expenses tabulated exclude outlays for the purchase of real estate; construction and all other capital improvements; funds invested; assessments or dues paid to the parent or other chapters of the same organization; and, for fundraising organizations, funds transferred to charities and other organizations.

RECEIPTS (Basic dollar volume measure for service establishments of firms subject to Federal income tax)

Includes receipts from customers or clients for services rendered, from the use of facilities, and from merchandise sold during 1992 whether or not payment was received in 1992, except for health practitioners and legal, architectural, engineering, and surveying services, which reported on a cash basis (payments received in 1992 regardless of when services were rendered). Excise taxes on gasoline, liquor, tobacco, etc., which are paid by the manufacturer or wholesaler and passed on in the cost of goods purchased by the service establishment, are also included. Receipts from leasing of vehicles, equipment, etc. marketed under operating leases are included in receipts figures as well as the fair sales value of merchandise marketed in 1992 under capital, finance, or "full payout" leases. Receipts also include the total value of service contracts, amounts received for work subcontracted to others, and dues and assessments from members and affiliates.

Receipts are net after deductions for refunds and allowances for merchandise returned by customers. Receipts do not include sales, occupancy, admissions, or other taxes collected from customers and remitted directly by the firm to a local, State, or Federal tax agency, nor do they include income from such sources as contributions, gifts, and grants; dividends, interest, and investments; or sale or rental of real estate. Also excluded are rents from and receipts (gross as well as the establishment's share) of departments and concessions which are operated by others; sales of used equipment rented or leased to customers; commissions from vending machine operators; and other nonoperating income such as royalties, franchise fees, etc.

Receipts in this report do not include service receipts of manufacturers, wholesalers, retail establishments, or other businesses whose primary activity is other than service. They do, however, include receipts other than from services rendered (e.g., sale of merchandise to individuals or other businesses) by establishments primarily engaged in performing services and classified in the service industries.

REVENUE (Basic dollar volume measure for financial, insurance, and real estate establishments covered by the census)

Revenue from all business activities whether or not payment was received in 1992, including net premiums earned by insurance carriers, commissions and fees from all sources, rents, net investment income, interest, dividends, and royalties. Rental revenue from leasing property marketed under operating leases is included, as well as interest earned from property marketed in 1992 under capital, finance, or full payout leases. Revenue also includes the total value of service contracts, amounts received for work subcontracted to others, rents from property sublet to others, and dues and assessments from members.

Revenue does not include sales and other taxes collected from customers and remitted directly by the firm to a local, State, or Federal tax agency. Revenue in this report does not include financial, insurance, or real estate revenue of manufacturers, wholesalers, retail or service establishments or other businesses whose primary activity is other than finance, insurance, or real estate.

Revenue (Basic dollar volume measure for firms exempt from Federal income tax)

Includes revenue from customers or clients for services rendered and merchandise sold during 1992, whether or not payment was received in 1992. Also included are income from interest, dividends, gross contributions, gifts, grants (whether or not restricted for use in operations), rents, royalties, dues and assessments from members and affiliates, and receipts from fundraising activities. Receipts from taxable business activities of firms exempt from Federal income tax (Unrelated Business Income) are also included in revenue.

Revenue does not include sales, admissions, or other taxes collected by the organization from customers or clients and paid directly to a local, State, or Federal tax agency; income from the sale of real estate, investments, or other assets (except inventory held for resale); gross receipts of departments, concessions, etc., that are operated by others; and amounts transferred to operating funds from capital or reserve funds.

OPERATING REVENUE (basic dollar volume measure for transportation, communications, and utilities establishments covered by the census)

Includes gross revenue from customers or clients for services rendered, from the use of facilities, and from merchandise sold in 1992, whether or not payment was received in 1992. Travel agents, shipping agents, and shipping brokers were to report commissions rather than gross billings or sales. Tour operators were to report the difference between the selling price of their tours and the amounts paid to suppliers, and freight forwarders were to report the difference between gross charges and the amounts paid to other transportation companies (net).

Telephone service establishments were to include revenue received from international calls originating in the United States (including that portion paid to foreign countries for accessing their network). These establishments were to include allowances for uncollectible accounts.

Network and broadcast stations were to include advertising sales net of commissions paid to agency representatives and brokers.

Rental revenue from leasing of vehicles, railroad cars, equipment, instruments, tools, etc., marketed under operating leases are included in revenues as well as the fair sales value of merchandise marketed in 1992 under capital, finance, or "full payout" leases. Revenues also include the total value of service contracts, amounts received for work subcontracted to others and from repair services provided to others, and dues and assessment from members and affiliates. Revenues are net after deductions for refunds and allowances for merchandise returned by customers.

Revenues do not include sales, occupancy, admissions, or other taxes collected directly from customers and paid directly by the firm to a local, State, or Federal tax agency, nor do they include income from such sources as contributions, gifts, and grants; dividends, interest, and investments; or sale or rental of real estate. Also excluded are rents and revenue (gross as well as the establishment's share) from departments or concessions which are operated by others; sales of used equipment rented or leased to customers; commissions from vending and amusement machine operators; and other nonoperating income such as royalties and franchise fees. Telephone service establishments were to exclude revenue collected on behalf of another company. Tax-exempt broadcast stations were to exclude contributions, gifts, grants, and other nonoperating income.

RETAIL SALES

Retail sales include merchandise sold for cash or credit at retail and wholesale by establishments primarily engaged in retail trade; amounts received from customers for layaway purchases; receipts from rental or leasing of vehicles, equipment, instruments, tools, etc.; receipts for delivery, installation, maintenance, repair, alteration, storage, and other services; the total value of service contracts; and gasoline, liquor, tobacco, and other excise taxes which are paid by the manufacturer or wholesaler and passed on to the retailer.

Sales are net after deductions for refunds and allowances for merchandise returned by customers. Trade-in allowances are not deducted from total sales. Total sales do not include carrying or other credit charges; sales (or other) taxes collected from customers and forwarded to taxing authorities; commissions from vending machine operators; sales and receipts of departments or concessions operated by other firms; commissions or receipts from the sale of government lottery tickets; installment payments from leasing of vehicles, equipment, instruments, tools, etc. marketed under capital, finance, or full payout leases; and nonoperating income from such sources as investments, rental or sale of real estate, etc.

Sales in retail trade files do not include retail sales made by manufacturers, wholesalers, service establishments, or other businesses whose primary activity is other than retail trade. They do include receipts other than from the sale of merchandise at retail, e.g., service receipts, sales to industrial users, and sales to other retailers, by establishments primarily engaged in retail trade.

WHOLESALE SALES

Sales include merchandise sold for cash or credit at wholesale and retail by establishments primarily engaged in wholesale trade; receipts from rental or leasing of vehicles, equipment, instruments, tools, etc.; receipts for delivery, installation, maintenance, repair, alteration, storage, and other services; and gasoline, liquor, tobacco, and other excise taxes which are paid by the manufacturer and passed on to the wholesaler. Sales are net after deductions for refunds and allowances for merchandise returned by customers. Trade-in allowances are not deducted from total sales. Total sales do not include carrying or other credit charges; sales (or other) taxes collected from customers and forwarded to taxing authorities; and nonoperating income from such sources as investments, rental or sale of real estate, etc. Sales in this report do not include wholesale sales made by manufacturers, retailers, service establishments, or other businesses whose primary activity is other than wholesale trade. They do include receipts other than from the sale of merchandise at wholesale, e.g., service receipts, retail sales, etc., by establishments primarily engaged in wholesale trade. Sales figures include sales of all establishments in business at any time during the year. Sales shown for agents and brokers represented the value of the goods involved in the transactions rather than the commissions received or earnings.

TYPE OF OPERATION

In addition to being classified by kind of business, each wholesale establishment was classified for the census by type of operation according to the ownership of the business, ownership of the goods sold, or character of the principal transactions. The principal types of establishments included are: Merchant wholesalers who take title to the goods they sell, such as wholesale merchants or jobbers, industrial distributors, voluntary group wholesalers, drop shippers, retailer cooperative warehouses, terminal elevators, and cooperative buying associations. Manufacturers' sales branches and offices (but not retail stores) maintained by manufacturing or mining enterprises apart from their plants or mines for the purpose or marketing their products. Sales branches and offices located at plants are included when separate records are available.

Agents, brokers, and commission merchants who buy or sell products owned by others on a commission or agency basis.

INVENTORIES (Construction Industries)

Includes all of the materials and supplies that are owned regardless of where they are held.

VALUE OF CONSTRUCTION WORK DONE

Includes all value of construction work done during 1992 for construction work performed by general contractors and special trades contractors. Included is new construction, additions and alterations or reconstruction, and maintenance and repair construction work. Also included is the value of any construction work done by the reporting establishments for themselves.

ESTABLISHMENTS (Construction)

A "construction establishment" is defined as a relatively permanent office or other place of business where the usual business activities related to construction are conducted. With some exceptions, a relatively permanent office is one which has been established for the management of more than one project or job and which is expected to be maintained on a continuing basis. Such "establishment" activities include, but are not limited to estimating, bidding, purchasing, supervising, and operation of the actual construction work being conducted at one or more construction sites. Separate construction reports were not required for each project or construction site.

Companies with more than one construction establishment were required to submit a separate report for each such establishment operated during all or any part of 1992.

ALL EMPLOYEES (Construction)

Comprise all full-time and part-time employees on the payrolls of construction establishments, who worked or received pay for any part of the pay period including the 12th of March, May, August, and November. All employees is the sum of all employees during the pay periods including the 12th of March, May, August, and November, divided by 4.

PRODUCTION-WORKER WAGES

Includes the gross earnings for the production-related employees defined in WORKERSMN, such as salaries, wages, commissions, dismissal pay, paid bonuses, employee contributions to pension plans (such as 401 k plans), vacation and sick leave pay, and the cash equivalent of compensation paid in kind, prior to such deductions as employees' Social Security contributions, withholding taxes, group insurance, union dues, and savings bonds.

CONSTRUCTION WORKERS

Includes all workers up through the working foreman level directly engaged in construction operations, such as painters, carpenters, plumbers, and electricians.

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