Wednesday, April 25, 2018

Facebook's 1Q 2018 Operating Results Are Exceptional ........................................................................................ Facebook's 1Q 2018 Total Revenues Were Up 50% Over Its 1Q 2017, An Acceleration From Its 4Q 2017 Total Revenue Growth of 47% (Alphabet's 1Q 2018 Total Revenues Were Up 26% on a Much Higher Base Than Facebook's, Also an Acceleration From Its 4Q 2017 Total Revenue Growth of 24%) ........................................................................................ Facebook's 1Q 2018 US GAAP Net Income Growth Was a Blistering 63% Over the 1Q 2017 (Alphabet's 1Q 2018 US GAAP Net Income Growth Was 73% and Its Core Net Income Growth Was 29% On a Much Higher Base Than Facebook's) ........................................................................................ Facebook's 1Q 2018 US GAAP Effective Income Tax Rate Was Only 11.1%, Alphabet's US GAAP Effective Income Tax Rate Was 10.8% and Its Core Effective Tax Rate Was 14.0%. It's Not Just US Domestic Corps Benefiting From the Trump Tax Cuts Act, It is Also Extremely Beneficial to Very Creative US Multi-National Corps. On the Other Hand, the US Government With Its Monstrous Loss of Tax Revenues is a Huge Loser in the Trump Tax Cuts Act ........................................................................................ Despite Trying, There's Little the US Government Can Do To Slow Down the Huge Earnings Growth of the Big 2 Software Giants: Alphabet and Facebook: The Upward Momentum of Computer Software Is Just Too Powerful and These Two Rule ........................................................................................ Facebook's Employee Count Was 27,742 at March 31, 2018, Up 48% From a Year Ago (Alphabet's Was 85,040, Up 15% From a Year Ago)

Tuesday, April 24, 2018

Alphabet 1Q 2018 Real Earnings Very Strong ........................................................................................ Many Wall Street Analysts Need to Go Back to School and Take Some Intermediate and Advanced Financial Accounting Courses

Alphabet just released its 1Q 2018 earnings.

The stock market takes its stock price down.

After in-depth analysis, many Wall Street analysts blew this one.  Alphabet had a very strong 1Q 2018.

Granted, Alphabet does a much better job operationally than it does in clearly writing its quarterly earnings releases.  And if you don't have a strong background in Intermediate and Advanced Financial Accounting, you have absolutely no shot at properly interpreting its earnings releases.

Let me simplify its 1Q 2018 earnings release.

The key to understanding it is to recast Alphabet's 1Q 2018 income statement.

When I factor out the FASB accounting changes, here's what I get.

Total Revenues in the 1Q 2018 are up 26% over the 1Q 2017 ..... No other large company but Facebook is getting that kind of consistently spectacular revenue growth.

The first new FASB change related to Performance Fees Expense of $632 mil on its Equity Securities.  Alphabet didn't disclose which specific expense line item it hit, but since its 1Q 2018 Cost of Revenues were up an extremely high 37.5% over the 1Q 2017, it only makes sense that this is where the $632 mil hit.  Thus recasting the reported 1Q 2018 Cost of Revenues of $13,467 mil by reducing it by $632 mil yields $12,835 mil, which is up a much more reasonable 31% over the 1Q 2017.

Then recasting the reported 1Q 2018 Operating Income amount of $7,001 mil for the $632 Performance Fees Expense, yields recasted Operating Income of $7,633 mil, which is up 16.2% over the 1Q 2017.

Normally it's not good for Operating Income growth to be 10% lower than Revenue Growth.  But this is where a smart computer software company makes its investments that drive that consistent 20%+ Revenue growth for many years into the future.  Accounting rules are very conservative in requiring these investments in exceptionally effective and efficient computer scientists to be expensed right away, even though the value of their product is well into the future.

Further, as you will see later, a forward thinking company like Alphabet knows it already has its real 1Q 2018 earnings growth in the bag to more than offset the high growth in Investments in Operating Expenses.

The second new FASB change relates to the requirement to now reflect its Equity Investments at market price.  The result was a 1Q 2018 Gain in Other Income and Expense of $3,031 mil.  Obviously that is a good thing, but then you could see that it would get something like this when you reviewed Alphabet's 2017 annual report footnotes.

Thus recasting the reported 1Q 2018 of $3,542 mil Other Income and Expenses for this Gain of $3,031 mil yields a recasted 1Q 2018 Other Income and Expense of $511 mil, a bit higher than the $251 mil reported in the 1Q 2017.  This is a line item companies frequently use to manage earnings.

Then recasting the reported 1Q 2018 Pretax Income of $10,543 mil for both the Performance Fees Expense of $632 mil and the Gain on Equity Securities of $3,031 mil yields a recasted 1Q 2018 Pretax Income of $8,144 mil, which is up 19.4% from the 1Q 2017.

Now for the dagger ..... Income Tax Expense ..... another line item companies frequently use to manage earnings.

Alphabet slickly was able to wash out the Income Tax Expense effect from the new FASB change on Equity Securities Gains and Performance Fees by using its Valuation Allowances on its Deferred Income Tax.

Thus, you don't need to recast its reported 1Q 2018 Income Tax Expense of $1,142 mil.

But the salient point here is that its 1Q 2018 effective income tax rate is only 14.0% ($1,142 mil/$8,144 mil).

And this yields recasted 1Q 2018 Net Income of $7,002 mil, which is up a very strong 29% over the 1Q 2017.

I can think of no other large company other than Facebook that can generate consistently real earnings growth of 25%.

So let's analyze the key effective income tax rates which were 20.4% in the 1Q 2017 and a much lower 14.0% in the 1Q 2018.  This is what caused recasted 1Q 2018 Pretax Income growth of 19% to expand substantially to 29% recasted 1Q 2018 Net Income growth.

So, just how reasonable is that 6.4% drop in the 1Q 2018 effective income tax rate?

Well, the Statutory US Federal Income Tax Rate dropped from 35% in 2017 to 21% in 2018.  So, US federal income tax paid and expensed will drop precipitously. 

Also, you have to always think about the required amount of Income Tax Reserve Liability already on their books and the off-book additional potential amounts in their minds to cover future audits.  The major problem large US multi-national Corps have here is the shifting of income to lower-taxed foreign countries.  When the US statutory tax rate was so much higher at 35% than that in other countries, the necessary Income Tax Reserve Liability as well as the off-book additional potential amounts to cover audits are both pretty high.  But once the 35% US statutory tax rate declines precipitously to 21%, it is very easy to argue that this required Income Tax Reserve as well as the additional amounts to cover audits can both be reduced from what they otherwise would be, which results in a lower effective income tax rate in 2018 and in subsequent years. 

Also, after the Initial Toll Tax is all paid by US multi-nationals, the US tax exposure from subsequent foreign earnings repatriation goes away with the Trump Tax Cuts Act.

To put it simply, financial pundits who claim that purely domestic companies will get substantially more tax cuts than very creative US multi-national corps have it wrong.  The Trump Tax Cuts Act gives these very creative US multi-national Corps even more reason to shift income to lower-taxed foreign countries.  And what that also means is that the US CBO has substantially overestimated US Government Corporation US Federal Income Tax Revenues from the Trump Tax Cuts Act and has substantially underestimated the resultant US Deficit.

So yeah, a 6.4% drop in Alphabet's 1Q 2018 effective income tax rate seems very reasonable to me.

Further, to criticize Alphabet for tripling its Capital Investments in the 1Q 2018 is pure craziness, particularly if a good chunk of it is made in the US.  Capital Investments are critical to the effectiveness of the key Web Services arena.  And Alphabet increased its number of employees from 74,000 a year ago to 85,000 now, up 15%.  So what do you want them to do, camp out on the lawn while they are working during the day?  And they need some really good hard capital goods tools to work effectively.  And The Bets area certainly need Capital Investments.  Just saying.

Monday, April 23, 2018

11 Largest Washington State Corps, Led By Starbucks, With Market Caps of $10 Bil+ Generated 4Q 2017 Real On-Their-Own Total Earnings Exclusive of the Initial Trump Tax Cuts Act Effect of $15.473 Bil, Up an Extremely Robust 40% Over Their 4Q 2016 Total Earnings of $11.082 Bil ........................................................................................ These 11 Washington State Corps Received 4Q 2017 Total Income Tax Benefits From US Federal Income Tax Debt Forgiveness of $9.2 Bil and Were Nailed With 4Q 2017 Total Foreign Earnings Repatriation Mandatory Toll Tax Expenses of More Than Double That of $18.8 Bil

From SEC filings, below here is Net Income (Loss) From Continuing Operations for the 4Q 2017 and the 4Q 2016 as well as the Trump Tax Cuts Act (TTCA) 4Q 2017 US Federal Income Tax Earnings Effects for the 11 largest Washington State Corps all with stock market caps of at least $10 Bil.
Trump
Trump Trump Tax
Co Tax Tax Cuts
Quarter US GAAP US GAAP Cuts Cuts Act
End Net Net Act Act Mandatory
When Income Income US Decrease Foreign
Trump (Loss) (Loss) Federal  in Value Earnings
Tax Dec 17 Dec 16 Income of Deferred Repatriation
Cuts Jan 18 Jan 17 Tax Income Toll
State Act or Feb 18 or Feb 17 Better Debt Tax Tax
Washington State Corps City Hqs HQs Signed Quarter Quarter (Worse) Forgiveness Assets Expense
mils $ mils $ mils $ mils $ mils $ mils $
Boeing Seattle WA Dec 17         3,132         1,631       1,501              1,210             (159)
T-Mobile US Bellevue WA Dec 17         2,702            390       2,312              2,180
Starbucks Seattle WA Dec 17         2,250            752       1,498                   77             (212)
Amazon Seattle WA Dec 17         1,856            749       1,107                 789
Costco Issaquah WA Feb 18            713            521          192                 165             (152)
PACCAR Bellevue WA Dec 17            589            289          300                 304             (131)
Fortive Corp Everett WA Dec 17            337            225          112                 205             (135)
Weyerhaeuser Seattle WA Dec 17            271              62          209              (74)
Expeditors Intl of Washington Seattle WA Dec 17            167            111            56                 116             (102)
Expedia Group Bellevue WA Dec 17              53              85          (32)                 158             (144)
Microsoft Redmond WA Dec 17        (6,302)         6,267   (12,569)              4,000        (17,800)
Total all 11         5,768       11,082     (5,314) -48%              9,204              (74)        (18,835)
Total all 11 Excluding TTCA Effect       15,473       11,082       4,391 40%



100 Largest California Technology Corps With Market Caps of $2 Bil+ Excluding eBay Generated 4Q 2017 Real On-Their-Own Total Earnings Exclusive of the Initial Trump Tax Cuts Act Effect of $59.531 Bil, Up a Very Robust 38% Over Their 4Q 2016 Total Earnings of $43.002 Bil ........................................................................................ eBay Was Excluded Since It Recorded a Massive Income Tax Benefit of $4.6 Bil in the 4Q 2016 Due to a Legal Restructuring (If eBay Is Included, These 101 California Tech Corps 4Q 2017 Total Earnings Are Up 23%) ........................................................................................ On the Other Hand, the 37 Largest California Health Care Corps With Market Caps of $2 Bil+ Generated 4Q 2017 Real On-Their-Own Exclusive of the Initial Trump Tax Cuts Act Effect Total Earnings of $4.887 Bil, Down 23% From Their 4Q 2016 Total Earnings of $6.373 Bil (If Gilead Sciences Is Excluded, the Remaining 36 California Health Care Corps 4Q 2017 Total Earnings Decline By Only 1%) ........................................................................................ 13 Largest California Non-Tech and Non-Health Care Corps With Market Caps of $10 Bil+ or Equivalent Excluding Wells Fargo Generated 4Q 2017 Real On-Their-Own Total Earnings Exclusive of the Initial Trump Tax Cuts Act Effect of $6.472 Bil, Up a Robust 25% Over Their 4Q 2016 Total Earnings of $5.159 Bil ........................................................................................ Wells Fargo Was Excluded Since It Used Much of Its 4Q 2017 $3.9 Bil of Income Tax Benefits From Trump Tax Cuts Act Tax Debt Forgiveness to Slickly Offset Large Financial Litigation Earnings Charges (If Wells Fargo Is Included, These 14 California Non-Tech and Non-Health Care Corps 4Q 2017 Total Earnings Are Down By 14%) ........................................................................................ Altogether, These 152 California Corps Received 4Q 2017 Total Income Tax Benefits From US Federal Income Tax Debt Forgiveness of $42.6 Bil and Were Nailed With 4Q 2017 Total Foreign Earnings Repatriation Mandatory Toll Tax Expenses of More Than Double That of $88.1 Bil ........................................................................................ Of the $42.6 Bil Of Tax Debt Forgiveness, $9.0 Bil of It Was Awarded to Foreign Corps or to US Subsidiaries of Foreign Corps

From SEC filings, below here is Net Income (Loss) From Continuing Operations for the 4Q 2017 and the 4Q 2016 as well as the Trump Tax Cuts Act (TTCA) 4Q 2017 US Federal Income Tax Earnings Effects for the 101 largest California Technology Corps with stock market caps of at least $2 Bil, the 37 largest California Health Care Corps with stock market caps of at least $2 Bil and the 14 largest California Corps in Other Sectors with stock market caps or Book Value of Equity of at least $10 Bil.  REITs and Utilities are excluded.
Trump
Trump Trump Tax
Co Tax Tax Cuts
Quarter US GAAP US GAAP Cuts Cuts Act
End Net Net Act Act Mandatory
When Income Income US Decrease Foreign
Trump (Loss) (Loss) Federal  in Value Earnings
Tax Dec 17 Dec 16 Income of Deferred Repatriation
Cuts Jan 18 Jan 17 Tax Income Toll
State Act or Feb 18 or Feb 17 Better Debt Tax Tax
California Corporations City Hqs HQs Signed Quarter Quarter (Worse) Forgiveness Assets Expense
mils $ mils $ mils $ mils $ mils $ mils $
Technology Companies
Apple Cupertino CA Dec 17       20,065       17,891       2,174            12,700       (15,300)
Broadcom Ltd San Jose CA Jan 18         6,581            257       6,324              5,810
Facebook Menlo Park CA Dec 17         4,268         3,568          700                 257         (2,530)
Visa San Francisco CA Dec 17         2,522         2,070          452              1,100         (1,100)
HP Inc Palo Alto CA Jan 18         1,938            611       1,327              1,145
Hewlett Packard Enterprises Palo Alto CA Jan 18         1,482            251       1,231              1,800         (1,000)
Symantec Mountain View CA Dec 17         1,311             (56)       1,367              1,600            (821)
NVIDIA Santa Clara CA Jan 18         1,118            655          463                 176              (43)                -  
PayPal Holdings San Jose CA Dec 17            620            390          230              1,295         (1,468)
Adobe Systems San Jose CA Feb 18            583            398          185              (10)            (118)
Lumentum Holdings Milpitas CA Dec 17            205              12          193              (83)
Netflix Los Gatos CA Dec 17            186              67          119              (47)              (32)
Seagate Technology Cupertino CA Dec 17            159            297        (138)            (208)
Yelp Inc San Francisco CA Dec 17            142                8          134
Applied Materials Santa Clara CA Jan 18            135            703        (568)         (1,006)
Flex Ltd San Jose CA Dec 17            118            129          (11)
Shutterfly Redwood City CA Dec 17            112              91            21                (9)
Arista Networks Santa Clara CA Dec 17            104              59            45              (33)              (19)
KeySight Technologies Santa Rosa CA Dec 17              94            109          (15)                 117                -                  -  
Twitter San Francisco CA Dec 17              91           (167)          258
Logitech Intl Newark CA Dec 17              81              97          (16)              (16)
Teledyne Technologies Thousand Oaks CA Dec 17              68              53            15                   22              (26)
Salesforce.com San Francisco CA Jan 18              68             (51)          119
CoreLogic Irvine CA Dec 17              65                6            59                   38
Advanced Micro Devices Santa Clara CA Dec 17              61             (51)          112
J2 Global Los Angeles CA Dec 17              50              43              7                   33              (49)
Marvell Technology Santa Clara CA Jan 18              49             (64)          113
Microsemi Aliso Viejo CA Dec 17              48              20            28                   12
Coherent Santa Clara CA Dec 17              42              31            11              (13)              (28)
Stamps.com El Segundo CA Dec 17              40              29            11              (13)
Veeva Systems Pleasanton CA Jan 18              34              22            12
Fair Isaac San Jose CA Dec 17              27              38          (11)                (7)                (5)
Synnex Fremont CA Feb 18              24              62          (38)                   26              (68)
Trade Desk Ventura CA Dec 17              17              10              7                (1)
Zynga San Francisco CA Dec 17              13             (35)            48                     2
Monolithic Power Systems San Jose CA Dec 17              12              17            (5)              (10)              (42)
Xilinx San Jose CA Dec 17              12            142        (130)                 424            (583)
Ellie Mae Pleasanton CA Dec 17              10              11            (1)                     9
Verifone Systems San Jose CA Dec 17                7             (18)            25                     3                -  
Roku Saratoga CA Dec 17                7                3              4
Stitch Fix San Francisco CA Jan 18                4               -                4                (5)
Qualys Foster City CA Dec 17                3                6            (3)              (10)
Cavium San Jose CA Dec 17               (1)           (122)          121                   12
Semtech Camarillo CA Jan 18               (1)                8            (9)                     3                (2)
Callidus Software Dublin CA Dec 17               (2)               (5)              3
Alteryx Irvine CA Dec 17               (2)               (6)              4
Mellanox Technologies Ltd Sunnyvale CA Dec 17               (3)                9          (12)
Viavi Solutions San Jose CA Dec 17               (4)              49          (53)
Synopsys Mountain View CA Jan 18               (4)              87          (91)              (46)              (73)
Blackline Woodland Hills CA Dec 17               (6)             (16)            10
RingCentral Belmont CA Dec 17               (6)               (7)              1
Zscaler San Jose CA Jan 18               (7)             (10)              3                    -  
New Relic San Francisco CA Dec 17               (8)             (14)              6
Coupa Software San Mateo CA Jan 18               (9)               (7)            (2)
Cornerstone On Demand Santa Monica CA Dec 17               (9)             (19)            10
Lam Research Fremont CA Dec 17             (10)            333        (343)              (54)            (703)
Proofpoint Sunnyvale CA Dec 17             (11)             (23)            12                     2
Pure Storage Mountain View CA Jan 18             (12)             (43)            31
Cadence Design Systems San Jose CA Dec 17             (14)              38          (52)              (25)              (67)
Square San Francisco CA Dec 17             (16)             (15)            (1)                     1
Power Integrations San Jose CA Dec 17             (17)              14          (31)                    -                  (5)              (35)
Maxlinear Carlsbad CA Dec 17             (19)                8          (27)              (16)                (1)
Twilio San Francisco CA Dec 17             (19)             (13)            (6)
Intuit Mountain View CA Jan 18             (21)              13          (34)              (39)
Splunk San Francisco CA Jan 18             (25)             (74)            49
Mulesoft San Francisco CA Dec 17             (25)             (13)          (12)
Okta Inc San Francisco CA Jan 18             (25)             (18)            (7)
Viasat Carlsbad CA Dec 17             (26)                5          (31)                -  
Zendesk San Francisco CA Dec 17             (27)             (25)            (2)
ServiceNow Santa Clara CA Dec 17             (28)             (33)              5
Fortinet Sunnyvale CA Dec 17             (29)              25          (54)              (48)              (15)
Box Inc Redwood City CA Jan 18             (33)             (37)              4
Palo Alto Networks Santa Clara CA Jan 18             (35)             (61)            26
Trimble Sunnyvale CA Dec 17             (35)              38          (73)                (3)              (79)
Cypress Semiconductor San Jose CA Dec 17             (36)              11          (47)                     3
Dropbox San Francisco CA Dec 17             (38)             (29)            (9)
Cloudera Palo Alto CA Jan 18             (44)             (61)            17
Guideware Software Foster City CA Jan 18             (46)                4          (50)              (29)
Plantronics Santa Cruz CA Dec 17             (50)              22          (72)                    -                  (7)              (69)
Aerojet Rocketdyne El Segundo CA Dec 17             (52)              18          (70)              (65)
Nutanix San Jose CA Jan 18             (63)             (76)            13
Atlassian Corp San Francisco CA Dec 17             (65)               (2)          (63)              (47)
Integrated Device Technology San Jose CA Dec 17             (68)              33        (101)              (10)              (92)
Maxim Integrated Products San Jose CA Dec 17             (75)            130        (205)              (14)            (237)
FireEye Milpitas CA Dec 17             (77)             (62)          (15)
Workday Pleasanton CA Jan 18             (89)             (88)            (1)
KLA-Tencor Milpitas CA Dec 17           (134)            238        (372)            (101)            (341)
Juniper Networks Sunnyvale CA Dec 17           (148)            189        (337)            (135)            (155)
AutoDesk San Rafael CA Jan 18           (174)           (173)            (1)                   32
Electronic Arts Redwood City CA Dec 17           (186)               (1)        (185)              (26)            (151)
Snap Inc Venice CA Dec 17           (350)           (170)        (180)
VMware Palo Alto CA Dec 17           (440)            441        (881)            (167)            (800)
NetApp Sunnyvale CA Jan 18           (506)            146        (652)            (117)            (739)
Activision Blizzard Santa Monica CA Dec 17           (584)            254        (838)              (81)            (555)
Intel Santa Clara CA Dec 17           (687)         3,562     (4,249)                 676         (6,100)
Western Digital San Jose CA Dec 17           (823)            235     (1,058)                   88         (1,660)
Alphabet Mountain View CA Dec 17        (3,020)         5,333     (8,353)                 376       (10,200)
Oracle Redwood City CA Feb 18        (4,024)         2,239     (6,263)                 744                -           (7,600)
Qualcomm San Diego CA Dec 17        (5,953)            681     (6,634)            (562)         (5,386)
Cisco Systems San Jose CA Dec 17        (8,778)         2,348   (11,126)            (900)       (10,200)
Total all 100       15,577       43,002   (27,425) -64%            28,506         (3,005)       (69,455)
Total all 100 Excluding TTCA Effect       59,531       43,002     16,529 38%
eBay San Jose CA Dec 17        (2,597)         5,948     (8,545) -144%         (1,700)         (1,400)
Total all 101       12,980       48,950   (35,970) -73%            28,506         (4,705)       (70,855)
Total all 101 Excluding TTCA Effect       60,034       48,950     11,084 23%
Health Care Companies
McKesson San Francisco CA Dec 17            960            649          311              1,260            (434)
Jazz Pharmaceuticals plc Palo Alto CA Dec 17            232            117          115                 155                (6)
Halozyme Therapeutics San Diego CA Dec 17            124             (27)          151
Bio-Rad Labs Hercules CA Dec 17              70             (21)            91                 121              (55)
Illumina San Diego CA Dec 17              58            108          (50)            (150)
ICU Medical San Clemente CA Dec 17              50              10            40                (1)                (2)
AMN Healthcare Services San Diego CA Dec 17              41              26            15                   14
Edwards Lifesciences Irvine CA Dec 17              36            159        (123)                     3            (297)
Nuvasive San Diego CA Dec 17              24                6            18                   12
Align Technology San Jose CA Dec 17              10              48          (38)              (10)              (74)
ResMed San Diego CA Dec 17              10              77          (67)                (7)            (120)
Penumbra Alameda CA Dec 17                9               (2)            11              (15)
Neurocrine Biosciences San Diego CA Dec 17                7             (45)            52
Masimo Irvine CA Dec 17               -              215        (215)                (9)              (35)
Inogen Goleta CA Dec 17               (1)                5            (6)                (8)
Ligand Pharmaceuticals San Diego CA Dec 17               (3)               (7)              4              (32)
Nevro Redwood City CA Dec 17               (4)             (10)              6
Ionis Pharmaceuticals Carlsbad CA Dec 17               (5)              26          (31)
AnaptysBio San Diego CA Dec 17               (7)               (5)            (2)
Dexcom San Diego CA Dec 17               (9)               (7)            (2)
Fibrogen San Francisco CA Dec 17             (22)             (34)            12
Denali Therapeutics South San Francisco CA Dec 17             (23)             (19)            (4)
Nektar Therapeutics San Francisco CA Dec 17             (34)             (42)              8
Intuitive Surgical Sunnyvale CA Dec 17             (39)            204        (243)              (48)            (270)
Global Blood Therapeutics South San Francisco CA Dec 17             (41)             (27)          (14)
Biomarin Pharmaceuticals Novato CA Dec 17             (51)             (91)            40              (33)
Herbalife Ltd Los Angeles CA Dec 17             (63)              99        (162)            (153)
Puma Biotechnology Los Angeles CA Dec 17             (64)             (73)              9
Acadia Pharmaceuticals San Diego CA Dec 17             (69)             (79)            10
Ultragenyx Novato CA Dec 17             (82)             (71)          (11)
Portola Pharmaceuticals South San Francisco CA Dec 17             (92)             (55)          (37)
Varian Medical Systems Palo Alto CA Dec 17           (112)                8        (120)              (38)            (169)
Cooper Cos Pleasanton CA Jan 18           (123)              76        (199)              (13)            (189)
Molina Health Care Long Beach CA Dec 17           (262)             (47)        (215)              (54)
Agilent Technologies Santa Clara CA Jan 18           (320)            168        (488)              (53)            (480)
Amgen Thousand Oaks CA Dec 17        (4,264)         1,935     (6,199) -320%              1,200         (7,300)
Total all 36        (4,059)         3,274     (7,333) -224%              2,765            (474)         (9,581)
Total all 36 Excluding TTCA Effect         3,231         3,274          (43) -1%
Gilead Sciences Foster City CA Dec 17        (3,836)         3,099     (6,935) -224%                 308         (5,800)
Total all 37        (7,895)         6,373   (14,268) -224%              3,073            (474)       (15,381)
Total all 37 Excluding TTCA Effect         4,887         6,373     (1,486) -23%
Companies in Other Sectors
Walt Disney Burbank CA Dec 17         4,473         2,488       1,985              1,900            (300)
American Honda Finance Torrance CA Dec 17         3,370            119       3,251              3,025
Chevron San Ramon CA Dec 17         3,118            438       2,680              2,020                -                  -  
Charles Schwab San Francisco CA Dec 17            597            522            75              (46)
Ross Stores Dublin CA Jan 18            451            301          150                   55
Clorox Oakland CA Dec 17            233            150            83                   60                (7)
The Gap San Francisco CA Jan 18            205            220          (15)                     2              (59)
Monster Beverage Corona CA Dec 17            201            173            28              (40)                (2)
First Republic Bank San Francisco CA Dec 17            194            179            15              (40)
CBRE Group Los Angeles CA Dec 17            171            265          (94)                   15            (158)
SVB Financial Group Santa Clara CA Dec 17            125            104            21              (34)
Franklin Resources San Mateo CA Dec 17           (572)            419        (991)                   53             (1,121)
Tesla Palo Alto CA Dec 17           (771)           (219)        (552)
Total all 13       11,795         5,159       6,636 129%              7,130            (160)         (1,647)
Total all 13 Excluding TTCA Effect         6,472         5,159       1,313 25%
Wells Fargo San Francisco CA Dec 17         6,241         5,304          937 18%              3,900                -              (173)
Total all 14       18,036       10,463       7,573 72%            11,030            (160)         (1,820)
Total all 14 Excluding TTCA Effect         8,986       10,463     (1,477) -14%
Grand Total all 152 California Corps
      23,121       65,786   (42,665) -65%            42,609         (5,339)       (88,056)
Grand Total all 152 Excluding TTCA Effect
      73,907       65,786       8,121 12%