Auxiliaries

Auxiliaries are establishments whose employees are primarily engaged
in providing various management or support services to one or more
establishments of the same enterprise. Characteristically, these
auxiliaries service only locations of the same enterprise, and
generally do not produce any products nor provide services for the
general public, other business firms, or government.  Services may be
provided, as a secondary activity, to the general public or other
business firms.

The term Auxiliaries includes establishments often referred to as
central administrative offices or corporate, subsidiary, and regional
managing offices.  These establishments provide general management
and/or administrative support services to other establishments of the
same company or its subsidiaries.  These establishments operate
independently from other establishments of the company and provide a
range of services, such as long term strategic and organizational
planning, financial management, payroll and personnel management, etc.
Examples of these establishments are corporate offices, centralized
administrative offices, head offices, and district and regional
offices. Other types of auxiliaries are data processing centers,
warehousing facilities, accounting and billing offices, etc..

For the 1997 Economic Census, separate establishments classified in
Major Group 46 and Industry Groups 481, 491, 492, 493, 602, 603, 606,
631, 632, 633, 635, and 636 engaged in performing support services for
other establishments of the same enterprise, where the support service
is an integral part of the enterprise's business (e.g., loan
processing department of a bank, underwriting department of a power
company), are all classified in their respective Standard Industrial
Classification (SIC) Divisions as operating establishments.

An enterprise is a business, service, or other organization consisting
of one or more establishments under common, direct, or indirect
ownership or control.  An enterprise is the highest level of
establishment aggregation. An enterprise may vary in composition
ranging from a single establishment company (e.g., corporation,
partnership, etc.) to a complex family of parent and subsidiary
companies (or firms) under common ownership or control.

An enterprise must have at least one operating establishment in order
to have another establishment classified as an auxiliary.  An
operating establishment is one which produces or distributes goods or
which performs services for the general public or for other business
firms. The particular legal form of organization of an enterprise has
no bearing on the classification of an establishment as an auxiliary.
Hence, an enterprise may consist of one or more "legal entities" and
thus have one or more Employer Identification  (EI) number.  Some
enterprises, in fact, have separate EI numbers setup exclusively for
these administrative and support services provided by auxiliaries.

For the purpose of classification, an auxiliary should be considered a
separate establishment if it provides management or support services
to at least one other establishment of the same enterprise at a
different location.  An auxiliary at the same physical location as one
of the enterprise's operating establishments is considered a separate
establishment if: (1) it also services at least one other
establishment of the enterprise, (2) the data for both the operating
establishment and the auxiliary at the same location are significant,
and (3) separate establishment type data can be reported.  If an 
auxiliary and operating establishment at the same location cannot meet
all three conditions, the entire location is treated as one
establishment and is classified on the basis of its primary activity
measured by employment or payroll.

Auxiliary establishments are classified industrially based on the
primary activity, SIC, of the operating establishment(s) they serve.
This "industry-serviced" code is the most appropriate industry
representing the primary activity of the establishments served.  The
first four digits of the SIC will identify the industry served.

In addition, Auxiliaries are further subclassified according to the
principal support function performed.  For 1997, there are several
type-of-activity codes available such as:

     Corporate, subsidiary, and regional managing office
     Data processing
     Research and development
     Security or guard
     Janitorial, pest control, and landscaping services to buildings
     and dwellings
     Repair and maintenance
     Warehousing facilities
     Trucking
     Legal
     Accounting, payroll, and billing
     Employment office
     Advertising

Separate agriculture, mining, construction, and manufacturing
establishments primarily producing goods or providing services for
establishments of the same enterprise are not classified as
auxiliaries, but are classified on the basis of their primary
activity.  Also, separate establishments primarily engaged in long
distance trucking, stevedoring, water transportation, railroad
transportation, or pipeline transportation for other establishments of
the same enterprise are classified in the corresponding transportation
industry.  However, establishments primarily providing local trucking;
warehousing; communications or electric, gas, and sanitary services
for other establishments of the same enterprise are classified as
auxiliaries.

In Public Administration, establishments engaged in performing central
administrative and managerial activities are classified as operating
establishments in the Public Administration Division.  Establishments
primarily engaged in performing other auxiliary activities for
establishments in public administration, such as warehouses,
automotive maintenance shops, and recreation facilities, are
classified as auxiliary establishments.