The Indiana Republican-controlled Legislature wants to punish Indiana’s private sector workers by passing Right-to-Work Legislation. Even Indiana Governor Mitch Daniels wisely states that this isn’t the right time for this legislation.
And the Indiana Republican-controlled Legislature also wants to reduce the Corporate Income Tax Rate in Indiana, a Tax Rate that has a Sticker Tax Rate of 8.50%. But the overall actual effective State Corporate Income Tax Rate Paid by Indiana’s Big Corps for the past 12 years was a meager 1.28%, an 85% discount to the 8.50% State Sticker Tax Rate, and by far the lowest effective corporate state income tax rate paid of the 18 largest US States.
Well, I think it would be wise to see just how Indiana Big Publicly-Held Corps’ earnings came out in 2010.
Let me show you below just how Indiana’s 15 largest Corps did as disclosed in either their most recent annual Fiscal Year Ended (FYE) 2010 earnings releases or in their SEC annual report filings:
Indiana Publicly-Held Large Corps Most Recent Annual Pretax Earnings (PTI)
......................................FYE......PTI.......PTI...Increase(Decrease)
Indiana Big Corp……......2010...2010.....2009......Amount........%..
....................................................(millions of dollars).....
The Dominant 2:
Eli Lilly...........................Dec.....6,525....5,358......1,167.........22%
WellPoint........................Dec.....4,354….3,611(1)....743..........21%
Total of Dominant 2…….…….....10,879….8,969…...1,910……....21%
The 10 Other Large Corps:
Cummins.........................Dec....1,617.......640........977........153%
Zimmer Holdings(2)........Dec....1,064....1,071..........(7)..........(1)%
Simon Property Group(3)Dec......754.......387........367...........95%
Mead Johnson Nutrition..Dec......634.......587..........47.............8%
ITT Educational Services.Dec......614.......491.........123...........25%
CNO Financial Group….....Dec......294.......174........120...........69%
Steel Dynamics................Dec.......213.......(18)........231......1,283%
Hill-Rom Holdings...........Sep.......183.........94..........89...........95%
Duke Realty(4)................Dec........29......(254)........283.........111%
Biomet(2).......................May.....(142)…..(369).......227...........62%
Total of 10 Other Large Corps….5,260….2,803…..2,457……….88%
The 3 Large Utility Corps:
NiSource........................Dec........436.......396..........40..........10%
Duke Energy Indiana…...Sep(5)…..331…….231……...100……....43% Vectren.........................Dec.........208…....197..........11.............6%
Total of 3 Large Utility Corps........975......824.........151...........18%
Total of All 15 Large Corps.......17,114..12,596......4,518.........36%
(1) WellPoint excludes large one-time gain of sale of business.
(2) Zimmer Holdings and Biomet both exclude large Goodwill and Other Intangible Asset impairment charges.
(3) Simon Property Group is an REIT and the income number here is Consolidated Net Income.
(4) Duke Realty is an REIT and the income number here is Income from Continuing Operations.
(5) Duke Energy Indiana Dec 2010 information is not yet available, thus I used the 9 months ended Sep 2010 numbers.
Yeah, that's correct....these 15 Largest Publicly-Held Corps with an SEC Location Code in Indiana had their Total Pretax Earnings for their most recent fiscal year 2010 increase sharply by 36% over 2009, going from $12,596 million in 2009 to $17,114 million in 2010.
And look just how incredibly consistent this earnings growth was. Of the 15 Large Indiana Corps, 14 had earnings growth in 2010, and the one that didn't, had its earnings decline by only 1%.
Also, just look how those 10 Large Corps other than the Dominant 2 performed in 2010….with total earnings up an incredible 88% in 2010.
And about half of the country still thinks that the Obama Administration is not helping the US economy. These strong 2010 Indiana earnings numbers are telling the same story that the stock market is telling….that the Obama Administration has really helped the US economy.
I think it's high time for Big Corps to start giving back to the country and hiring employees, and for Indiana legislators to start working on real job creating stimulation initiatives, rather than going off target on things like this attempted Right-to-Work legislation and myopic, poorly reasoned, and patently unfair education legislation.
I don’t think that Right-to-Work Legislation and many of these education reform(?) initiatives were what Indiana citizens were voting for in the November 2010 Election. The State Legislature should focus on serving the entire State of Indiana, and not just its big business constituents.
The above research, where I found 15 Indiana Big Corps, which generated total 2010 earnings growth of 36%, was performed through the end of March 2011. Since then, in April and May 2011, I extended this research, and I found 1 additional Indiana Big Corp, Springleaf Finance, which is shown here below. When I include Springleaf Finance, Indiana's total earnings growth for 2010 increases from 36% to an even more robust 44%.
..........................................2010.......2009.........Increase
...........................................Core........Core........(Decrease)
.......State..........................PTI(L)......PTI(L).....Amount.....%
..............................................(millions of dollars)....
Late Big Corp Addition
Springleaf Finance(1).......(253)........(888).........635......72%
(1) Springleaf Finance is the former Evansville-based American General Finance, which was previously 100% owned by AIG. As of November 30, 2010, AIG now owns 20% of Springleaf Finance, with the other 80% owned by Fortress Investment Group, a New York-based global investment manager. The above Springleaf 2010 Core Pretax Loss of $253 mil excludes a $1.5 bil bargain purchase gain (yeah, that amount is not a misprint, and it is included in Springleaf's 2010 reported earnings).
