Sales and Receipts

Sales and Receipts of All Firms

Sales and receipts of all firms include those of both nonemployer firms and firms with paid employees. In most summaries, sales and receipts of nonemployers make up a relatively small part of the total.

Receipts of nonemployer firms includes gross receipts, sales, commissions, and income from trades and businesses, as reported on annual business income tax returns. Business income consists of all payments for services rendered by nonemployer businesses, such as payments received as independent agents and contractors.

The composition of nonemployer receipts may differ from that of the sales and receipts as published for firms with paid employees. For example, for wholesale agents and brokers without payroll, the receipts item contains commissions received or earnings. In contrast, for wholesale agents and brokers with payroll, the sales item published in the economic census represents the value of the goods involved in the transactions.

Sales and Receipts of Firms with Paid Employees

The total sales, shipments, receipts, revenue, or business done by establishments with paid employees, as recorded in the Economic Census, differs slightly from sector to sector, as noted below.

Sector-Specific Information

Construction sector - Includes the value of construction work and other business receipts for work done by establishments during the year. 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.

Speculative builders were instructed to include the value of buildings and other structures built or being built for sale in the current year but not sold. They were to include the costs of such construction plus normal profit. Also included is the cost of construction work done on buildings for rent or lease.

Establishments engaged in the sale and installation of such construction components as plumbing, heating, and central air-conditioning supplies and equipment; lumber and building materials; paint, glass, and wallpaper; electrical and wiring supplies; and elevators or escalators were instructed to include both the value for the installation and the receipts covering the price of the items installed.

Excluded was the cost of industrial and other specialized machinery and equipment, which are not an integral part of a structure.

Finance and Insurance sector - Includes revenue from all business activities whether or not payment was received in the census year, including commissions and fees from all sources, rents, net investment income, interest, dividends, royalties, and net insurance premiums earned. Revenue from leasing property marketed under operating leases is included, as well as interest earned from property marketed in the census year under capital, finance, or full payout leases. Revenue also includes the total value of service contracts and amounts received for work subcontracted to others.

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.

Information sector - Includes receipts from customers or clients for services rendered, from the use of facilities, and from merchandise sold during 1997, whether or not payment was received in 1997. Receipts include royalties, license fees, and other payments from the marketing of intangible products (e.g., licensing the use of or granting reproduction rights for software, musical

compositions, and other intellectual property). Receipts also include the rental and leasing of vehicles, equipment, instruments, tools, etc.; total value of service contracts; market value of compensation received in lieu of cash; amounts received for work subcontracted to others; dues and assessments for members and affiliates; this establishment's share of receipts from departments, concessions, and vending and amusement machines operated by others. Receipts from services provided to foreign customers from U.S. locations, including services preformed for foreign parent firms, subsidiaries, and branches are included. For public broadcast stations and libraries, include receipts from contributions, gifts, grants, and income from interest, rental of real estate, and dividends.

Receipts DO NOT include sales and other taxes collected directly from customers or clients and paid directly to a local, state, or Federal tax agency. Also excluded are gross receipts collected on behalf of others; gross receipts or departments or concessions operated by others; sales of used equipment previously rented or leased to customers; proceeds from the sale of real estate (land and buildings), investments, or other assets (except inventory held for resale); contributions, gifts, grants, and income from interest, rental of real estate, and dividends EXCEPT for public broadcast stations and libraries; domestic intracompany transfers; receipts of foreign subsidiaries; and other nonoperating income.

Management of Companies and Enterprises sector- For holding companies, revenue includes revenue of only the holding company establishment, including net investment income, interest, and dividends.

Manufacturing sector - Covers the received or receivable net selling values, f.o.b. plant (exclusive of freight and taxes), of all products shipped, both primary and secondary, as well as all miscellaneous receipts, such as receipts for contract work performed for others, installation and repair, sales of scrap, and sales of products bought and resold without further processing. Included are all items made by or for the establishments from materials owned by it, whether sold, transferred to other plants of the same company, or shipped on consignment. The net selling value of products made in one plant on a contract basis from materials owned by another was reported by the plant providing the materials.

In the case of multiunit companies, the manufacturer was requested to report the value of products transferred to other establishments of the same company at full economic or commercial value, including not only the direct cost of production but also a reasonable proportion of "all other costs" (including company overhead) and profit.

Mining sector - Includes the net selling values, f.o.b. mine or plant after discounts and allowances, excluding freight charges and excise taxes. Shipments includes all products physically shipped from the establishment during the year, including material withdrawn from stockpiles and products shipped on consignment, whether or not sold in the current year. Prepared material or concentrates includes preparation from ores mined at the same establishment, purchased, received from other operations of the same company, or received for milling on a custom or toll basis. For products transferred to other establishments of the same company or prepared on a custom basis, companies were requested to report the estimated value, not merely the cost of producing the items. Multiestablishment companies were asked to report value information for each establishment as if it were a separate economic unit. They were instructed to report the value of all products transferred to other plants of the company at their full economic value; to include, in addition to direct cost of production, a reasonable proportion of company overhead and profits.

For all establishments classified in an industry, value of shipments and receipts includes (1) the value of all primary products of the industry; (2) the value of secondary products which are primary to other industries; (3) the receipts for contract work done for others, except custom milling; and (4) the value of products purchased and resold without further processing. Receipts for custom milling are not included to avoid duplication with the value of custom milled ores included in an industry's primary and secondary products. Some duplication exists in industry and industry group totals because of the inclusion of materials transferred from one establishment to another for mineral preparation or resale.

Professional, Scientific, and Technical Services; Administrative and Support and Waste Management and Remediation Services; Educational Services; Health Care and Social Assistance; Arts, Entertainment, and Recreation; and Other Services (Except Public Administration) sectors - TAXABLE ESTABLISHMENTS: Includes receipts from customers or clients for services rendered, from the use of facilities, and from merchandise sold during 1997 whether or not payment was received in 1997. For advertising agencies, travel industries, and other service establishments operating on a commission basis, receipts include commissions, fees, and other operating income, NOT gross billings and sales. 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. The establishments share of receipts from departments, concessions, and vending and amusement machines operated by others are included as part of receipts. Receipts also include the total value of service contracts, market value of compensation received in lieu of cash, amounts received for work subcontracted to others, and dues and assessments from members and affiliates. Receipts from services provided to foreign customers from U.S. locations, including services preformed for foreign parent firms, subsidiaries, and branches are included.

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 receipts (gross) of departments and concessions which are operated by others; sales of used equipment rented or leased to customers; domestic intracompany transfers; receipts of foreign subsidiaries; and other nonoperating income, such as royalties, franchise fees, etc. Receipts 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.

TAX EXEMPT ESTABLISHMENTS: Includes revenue from customers or clients for services rendered and merchandise sold during 1997, whether or not payment was received in 1997, and gross sales of merchandise, minus returns and allowances. Also included are income from interest, dividends, gross rents (including display space rentals and share of receipts from departments operated by other companies), gross contributions, gifts, grants (whether or not restricted for use in operations), royalties, dues and assessments from members and affiliates, commissions earned from the sale of merchandise owned by others (including commissions from vending machine operators), and gross 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.

Real Estate and Rental and Leasing sector - Includes revenue from all business activities whether or not payment was received in the census year, including commissions and fees from all sources, rents, net investment income, interest, dividends, and royalties. Revenue from leasing property marketed under operating leases is included. Revenue also includes the total value of service contracts, amounts received for work subcontracted to others, and rents from real property sublet to others.

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.

Retail Trade sector - Includes 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 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 sales. Sales do not include carrying or other credit charges; sales (or other) taxes collected from customers and forwarded to taxing authorities; gross sales and receipts of departments or concessions operated by other companies; and commissions or receipts from the sale of government lottery tickets.

Sales 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.

Transportation and Warehousing sector - Includes revenue from all business activities whether or not payment was received in the census year, including commissions and fees for arranging the transportation of freight.

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.

Utilities sector - Includes revenue from all business activities whether or not payment was received in the census year.

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.

Accommodation and Foodservices sector - Includes sales from customers for services rendered, from the use of facilities, and from merchandise sold. Also includes dues and assessments from members and affiliates.

Sales do not include carrying or other credit charges; sales (or other) taxes collected from customers and forwarded to taxing authorities; gross sales and receipts of departments or concessions operated by other companies; and commissions or receipts from the sale of government lottery tickets.

Excludes sales from civic and social organizations, amusement and recreation parks, theaters, and other recreation or entertainment facilities providing food and beverage services.

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