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.
Go to national statistics from the economic census.
