F102. Nonfarm Nonfinancial Corporate Business

Federal Reserve definition for F102 flow of funds table

This sector comprises all private domestic corporations except corporate farms. It includes holding companies, S-corporations, and real estate management corporations. The sector is the largest component of the nonfinancial business sector, accounting for about half of all net private investment in the U.S. economy.

Together, entities that make up this sector had well over $3 trillion of credit market debt outstanding at the end of 1997 in the form of bonds, mortgages, commercial paper, and loans from banks and nonbank financial institutions.

The table covers only the domestic activities of nonfarm nonfinancial corporations; it does not include the financial transactions of foreign subsidiaries of U.S. corporations. Therefore, earnings from the operations of foreign subsidiaries and foreign branches are reflected only in profit elements — either as earnings retained abroad or as dividends received.

In symmetric fashion, the results of foreign corporations in the U.S. are included in the table, with earnings retained in the U.S. and dividends paid to U.S. stockholders being offset against the items' respective counterparts for U.S. corporations.

Also, in a corollary way, changes in the foreign capital account positions are included in the table, with changes in the liabilities of the sector shown as foreign direct investment in the U.S.

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