Quarterly Financial Report

Financial Operating Ratios

• Annual rate of profit on stockholders' equity at end of period
   
  • This ratio measures the rate of return that accrues to stockholders on their investment.
  • This ratio is calculated by multiplying income for the quarter before or after domestic taxes
    (including branch income (loss) and equity in the earnings of nonconsolidated subsidiaries net of foreign taxes) by four,
    to put it on an annual basis, and then dividing by stockholders' equity at the end of the quarter.
• Annual rate of profit on total assets
   
  • This ratio measures the productivity of assets in terms of producing income.
  • This ratio is calculated by multiplying income, as defined in deriving the rate of profit on stockholders' equity,
    both before and after taxes, by four, and then dividing by total assets at the end of the quarter.
• Total current assets to total current liabilities
   
  • This ratio measures the ability to discharge current maturing obligations from existing current assets.
  • This ratio is calculated by dividing total current assets by total current liabilities.
• Total cash and U.S. Government and other securities to total current liabilities
   
  • This ratio measures the ability to discharge current liabilities from liquid assets.
  • This ratio is calculated by dividing total cash and U.S. Government and other securities by total current liabilities.
• Total stockholders' equity to total debt
   
  • This ratio indicates the extent of leverage financing used.
  • This ratio is calculated by dividing total stockholders' equity by the total of short-term loans,
    current installments on long-term debt, and long-term debt due in more than one year.

Legal Authority and Confidentiality

• The Census Bureau's authority is founded on the United States Constitution and Title 13 of the United States Code.
   
  • Title 13 authorizes the Census Bureau to conduct censuses and surveys.
  • For corporations selected in the QFR sample, response is required by law (Title 13, Section 91).
  • Section 9 of Title 13 also requires that any information collected from the public under the authority of Title 13 be maintained as confidential.
  • Information collected will be seen only by sworn Census Bureau employees and used only for statistical purposes.
  • Section 214 of Title 13 and Sections 3559 and 3571 of Title 18 of the United States Code provide for the imposition of penalties
    of up to five years in prison and up to $250,000 in fines for wrongful disclosure of confidential census information.
  • In accordance with Title 13, no estimates are published that would disclose the operations of an individual firm.
  • The Census Bureau's internal Disclosure Review Board sets the confidentiality rules for all data releases.
  • A checklist approach is used to ensure that all potential risks to the confidentiality of the data are considered and addressed.
  • Title 13 also provides that copies of response questionnaire data retained in corporate files are immune from legal process.
• The Census Bureau's authority to use Federal Tax Returns and Return Information (FTI) is founded on Title 26 of the Internal Revenue Code.
   
  • Title 26 provides for the conditions under which the (IRS) may disclose FTI to other agencies.
  • Specifically, 26, U.S.C. 6103 (j) (1) provides for the disclosure of FTI to the Census Bureau for statistical purposes in the
    structuring of censuses and national economic accounts, as well as for conducting related statistical activities authorized by law.

Employer Identification Number (EIN)

• A nine-digit number used by the Internal Revenue Service (IRS) for any legal entity that is required to file a federal tax return.