All Other Operating Expenses - Operating expenses
not reported elsewhere, such as bank card charges, motor fuel,
and travel expense. Excluded are purchase of products for resale
(cost of goods sold); bad debt; transfers made within the company;
capitalized expenses; interest; impairment; income, sales, and
excise taxes; and other non-operating expenses.
Annual Payroll - The
gross earnings of all employees paid during the calendar year
(cash basis). It includes all forms of compensation, such as salaries,
wages, commissions, dismissal pay, bonuses, vacation and sick
leave pay, and compensation in kind, prior to such deductions
as employees' social security contributions, withholding taxes,
group insurance, union dues, and savings bonds. The total includes
salaries of officers of corporations; it excludes payments to
proprietors or partners of unincorporated concerns. The Census
definition of payroll is identical to that recommended to all
Federal statistical agencies by the U.S. Office of Management
and Budget, in particular, the definition used on the Employer's
Quarterly Federal Tax Return, Treasury Form 941. This definition
does not include employers' social security contributions or other
nonpayroll labor costs, such as employees' pension plans, group
insurance premiums, and workers' compensation. Data presented
on annual payroll are sample-based and include payroll of enterprise
support locations, such as retail warehouses and central administrative
offices, and thus may not match payroll data compiled in the 2007
Economic Census.
Auxiliary Facilities - Also known as enterprise
support units of a reporting company, these are primarily engaged
in furnishing supporting services to the company's operating units,
such as warehouses, central administrative offices, garages, and
repair services.
Capitalized Expenses - Also known as capital
expenditures, this includes all expenditures during the year for
both new and used structures and equipment chargeable to asset
accounts for which depreciation or amortization accounts are ordinarily
maintained. Also included are capitalized leasehold improvements
and capitalized interest charges on loans used to finance capital
projects.
Commissions - Commissions paid to other firms
or independent contractors, including payments by wholesalers
to other firms for commissioned sale of merchandise. This item
excludes commissions paid to the firm's own employees (included
in payroll) and commissions paid by wholesale agents and brokers.
Contract Labor Costs
- Payments to other firms for the contractual use of their employees.
These employees are supplied by other firms to perform specific
jobs, and include temporary help and leased employees. Day-to-day
supervision is provided by the purchasing firm. For example, contractual
costs for security and janitorial personnel are excluded if supervised
by the supplying firms, but are included in data compiled on other
operating expenses.
Cost of Goods Sold - Beginning inventory plus
purchases of goods for resale minus ending inventory.
Data Processing and Other Purchased Computer Services
- Computer facilities management services, computer input preparation,
data storage, computer time rental, optical scanning services,
and other computer-related advice and services, including training.
Depreciation and Amortization Charges - Depreciation
charged against tangible assets owned and used by a firm, tangible
assets and improvements owned by a firm within leaseholds, and
tangible assets obtained through capital lease agreements. This
item also includes amortization charges against intangible assets
(i.e., goodwill, patents, copyrights, etc.). Excluded from this
item is accumulated depreciation.
Employer's Cost for Fringe Benefits - Expenditures
made by the employer for legally required and voluntary fringe
benefit programs for employees. Legally required fringe benefits
includes all programs required under Federal and State legislation
such as FICA, unemployment tax, workers' compensation, and state
disability payments. Voluntary fringe benefits includes programs
not specifically required by Federal or State legislation, such
as life and health insurance premiums for employees; costs incurred
under defined contribution plans such as profit sharing; and costs
incurred for both qualified and unqualified defined pension plans.
Employer Identification Number
- A nine-digit number used by the Internal Revenue Service for
any legal entity that is required to file a federal tax return.
Establishment - A single
physical location where business is conducted, or where services
are performed.
Expensed Equipment - Expensed computer hardware
and other equipment (e.g., copiers, fax machines, telephones,
shop and lab equipment, CPU's, and monitors). Excluded are expenditures
for capitalized equipment; for software expenses; for leased and
rented equipment; and depreciation for capitalized equipment.
Expensed Purchases of Software - Purchases
of prepackaged, custom coded, or vendor customized software including
software developed or customized by others, web design services
and purchases, licensing agreements, upgrades of software; and
maintenance fees related to software upgrades and alterations.
Firm - A business organization
or entity consisting of one or more domestic establishment locations
under common ownership or control.
Fringe Benefits - Expenditures
made by the employer for legally required and voluntary fringe
benefit programs for employees. Legally required fringe benefits
includes all programs required under Federal and State legislation
such as FICA, unemployment tax, workers' compensation, and state
disability payments. Voluntary fringe benefits includes programs
not specifically required by Federal or State legislation, such
as life and health insurance premiums for employees.
Governmental Taxes and License Fees - Payments
to governmental agencies for taxes and licenses, business and
property taxes and excludes income taxes, and sales and excise
taxes collected from customers.
Imputation - The procedure
for determining a value for a specific data item where the response
is missing or unusable.
Interest Expense - Interest expense incurred
in the financing of operations and long lived assets used in continuing
operations, and excludes transfers made within the company and
capitalized interest. For kinds of business covered in this survey,
interest is not considered a type of operating expense.
Lease and Rental Payments for Land, Buildings, Structures,
Store Space and Offices - Payments made to other companies
for the rental or leasing of land, buildings, offices and related
structures and includes penalties incurred for broken leases.
Lease and Rental Payments for Machinery, Equipment,
and Other Tangible Items - Payments made to other companies
for the rental or leasing of machinery and equipment. Costs for
the rental and leasing of computer software are excluded.
Operating Expenses, Total - The sum of detailed
types of expenses. It excludes cost of goods sold; income, sales,
and excise taxes; capital expenditures; funds invested; and interest
expense. The detailed expenses are listed below:
Annual payroll before deductions
Employer's cost for fringe benefits
Contract temporary staff and leased employee expense
Expensed equipment
Purchases of packaging materials and containers
Purchases of other materials, parts, and supplies (not for resale)
Commissions expense
Expensed purchases of software
Data processing and other purchased computer services
Purchased communication services
Purchased repairs and maintenance to machinery and equipment
Purchased repairs and maintenance to buildings, structures,
and offices
Lease and rental payments for machinery, equipment, and other
tangible items
Lease and rental payments for land, buildings, structures, store
space, and offices
Purchased electricity
Purchased fuels (except motor fuels)
Water, sewer, refuse removal, and other utility payments
Purchased transportation, shipping and warehousing services
Purchased advertising and promotional services
Purchased professional and technical services
Depreciation and amortization charges
Governmental taxes and license fees
All other operating expenses
Purchased Advertising and Promotional Services
- Cost of purchases of advertising, marketing and public relations
services.
Purchased Communication Services - Cost of
purchased telephone, cellular, and fax services; computer-related
communications (e.g., Internet, connectivity, online); and other
wired and wireless communication services.
Purchased Electricity - Cost of electricity
paid directly to the utility company and excludes the cost of
electricity within lease or rental payments.
Purchased Fuels (Except Motor Fuels) - Cost
of fuels for heating, power, or generation of electricity. It
does not include fuel for motor vehicles. It excludes the cost
of fuel within lease or rental payments.
Purchased Packaging and Containers - Purchases
of containers, wrapping, packing and selling supplies used in
packaging, processing, shipping, and selling of goods.
Purchased Professional and Technical Services
- Management consulting, accounting, auditing, bookkeeping, legal,
actuarial, payroll processing, architectural, engineering, and
other professional services. This excludes salaries paid to a
firm's own employees for these services.
Purchased Repairs and Maintenance to Buildings, Structures,
and Offices - Noncapitalized repairs of and maintenance
to buildings, structures, storefronts, and offices. Extensive
repairs or reconstruction that were capitalized are considered
capital expenditures and are, therefore, excluded from this item.
Costs for repair and maintenance provided by an owner as part
of a rental contract or incurred directly by an establishment
in using its own work force are also excluded.
Purchased Repairs and Maintenance to Machinery and Equipment
- Cost of all non-capitalized repairs and maintenance
to machinery and equipment.
Purchased Transportation, Shipping, and Warehousing
Services - Cost of purchased postage, shipping or delivery
services, or warehousing storage. Also included is the cost of
purchased transportation services.
Purchases of Other Materials, Parts, and Supplies (Not
for Resale) - Cost of other supplies, materials and parts
purchased for a firm’s own use. This item excludes computer supplies
(and packaging supplies purchased by wholesalers and retailers),
and the cost of goods purchased for resale.
Receipts/Revenue for
Service Industries:
Receipts/Revenue (for firms subject to
payment of federal income tax) - For businesses using accrual-based
accounting, this includes the total amounts received from
customers or clients for services rendered and merchandise
sold during the calendar year whether or not payment was actually
received during the year regardless of when services were
rendered. 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.
Revenue (for organizations exempt from
federal income tax) - Revenue includes charges or billings
to customers or clients for services rendered and merchandise
sold during the calendar year whether or not payment was actually
received during the year. Also, included are income from interest,
dividends, contributions, gifts and grants, rents, royalties,
dues and assessments form members and affiliates, and net
receipts from fund-raising activities. Receipts from these
organizations' taxable business activities, as well as tax-exempt
activities, are included.
Reporting Unit - Subsidiaries, divisions or
other operating units of the EIN or company sampling unit separately
identified on the database for purposes of collecting data from
each individual part. If all data for a sampling unit are obtained
from one location, the sampling and reporting unit records are
equivalent.
Sales For Merchant Wholesale
and Retail Trades and Accommodations and Food Services
- This is the measure of economic output for covered trades. This
item includes: goods and merchandise sold for cash or credit;
receipts for accommodations services; receipts from customers
for freight, installation, maintenance, repair, alteration, storage,
and other services; excise taxes which are levied on the manufacturer
and included in the cost of goods purchased by wholesalers; subsidy
payments received for the sale of goods; gross value of sales
made on a commission basis; and the sales of goods which are shipped
by a wholesaler.
Water, Sewer, Refuse Removal and Other Utility Payments
- Cost of purchased services for water, sewage, trash, and utilities
not included elsewhere. It excludes costs covered within lease
and rental payments.
Source: U.S. Census Bureau | Business Expenses | (888) 211-5946 |
Last Revised:
March 02, 2012