With the Great Recession, the jobless recovery, and the horrible housing crisis, California financial State coffers are severely suffering, as are many of its State citizens.
However, I think it would be wise to get an update on how California Big Corps have fared both very recently and also just before, during, and just after the Great Recession, so that we can better assess where California Big Corps stand now financially, as compared with the present financial status of California citizens.
With this update, I think we can get a better insight on what should constitute a fair sharing of the financial burden to balance the State Budget between California Big Corps and California citizens. And frankly, Big Corps outside of California, including foreign-owned Big Corps, that do business in California, should also be included in this mix of a fair sharing of this very expensive financial burden to balance the State Budget of California.
Let me show you below just how California's 85 largest publicly-held Corps did as was disclosed in either their most recent annual Fiscal Year Ended (FYE) 2010 earnings releases or in their most recent SEC annual report filings. And let me also break these Earnings down by Major Industry Sector.
California's 85 Largest Publicly-Held Corps Most Recent Annual Pretax Earnings (PTI)
......................................FYE.....PTI(L)....PTI(L).....Increase.......
California Big Corp........2010.....2010......2009.....Amount.....%..
..............................................(millions of dollars)..............
Technology (40 Big Corps)
Apple………………………....Sep…..18,540...12,066......6,474......54%
Intel………………………......Dec…..16,045.....5,704....10,341.....181%
Hewlett-Packard…………..Oct…..10,974.....9,415.......1,559......17%
Google……………………......Dec….10,796.....8,381.......2,415......29%
Cisco Systems…………......Jul…....9,415.....7,693.......1,722......22%
Oracle……………………......May…...8,243.....7,834.........409........5%
Qualcomm(1)……………....Sep…...4,034.....3,089.........945.......31%
Ebay(2)………………….......Dec…...2,098.....1,429.........669.......47%
Seagate Technology(3)...Jun…....1,569.....(494).......2,063.....418%
Western Digital…………....Jun…...1,520.......501........1,019.....203%
Yahoo……………………......Dec…...1,466.......824..........642.......78%
Sandisk………………….......Dec…...1,457.......504..........953.....189%
Applied Materials………...Oct…...1,387.....(486).......1,873.....385%
Broadcom………………......Dec…...1,097........72........1,025...1424%
Adobe Systems…………...Nov….....943.......702..........241.......34%
Marvell Technology……Jan 11......910.......343..........567.....165%
Altera………………………....Dec….....868.......306..........562.....184%
Symantec(4)…………….....Mar….....826.......816............10.........1%
Activision Blizzard(5)…...Dec….....818.......401.........417.....104%
Intuit………………………......Jul….....815.......653.........162.......25%
Juniper Networks(6)…….Dec….....778.......494.........284.......57%
Check Point Software…....Dec….....564.......446.........118.......26%
Agilent Technologies(7)..Oct….....560...........7.........553....7900%
Linear Technology………..Jun….....490.......369.........121.......33%
NetApp(8)…………………....Apr….....447.......137........310.....226%
Dolby Labs………………......Sep….....437.......371..........66.......18%
Lam Research………….......Jun….....430......(263).......693.....263%
Xilinx(9)………………….......Mar.......422.......383..........39........10%
VMWare………………….......Dec….....416.......223........193........87%
Adv Micro Devices(10)....Dec….....363......(834).....1,197.....144%
Aecom Technology……....Sep….....341.......278..........63.......23%
Novellus Systems…….......Dec….....305.......(69).......374.....542%
Maxim Integr Products....Dec….....300........35........265.....757%
KLA Tencor(11)……….......Jun….....291......(156).......447.....287%
Autodesk………………......Jan 11......272........85.........187.....220%
Nvidia………………….......Jan 11......271.......(82)........353.....430%
Natl Semiconductor….....May….....269.......114........155......136%
Netflix………………….........Dec….....268.......192..........76.......40%
Atmel(12)……………….......Dec….....216.......(45)........261.....580%
Electronic Arts(13)…...Mar(13)...(348).....(845).......497.......59%
Total Big Technology…………..100,913...60,593...40,320....67%
Oil and Gas (2 Big Corps)
Chevron……………….........Dec….32,055...18,528.....13,527.....73%
Occidental Petroleum.....Dec…...7,636......5,265.......2,371.....45%
Total Big Oil and Gas……………....39,691....23,793....15,898....67%
Financial (7 Big Corps)
Wells Fargo…………..........Dec….19,001...17,998......1,003.......6%
Visa(14)………………..........Sep…..4,638......3,527.......1,111......31%
Franklin Resources….......Sep…..2,070.....1,289.........781......61%
Charles Schwab(15).........Dec…..1,099......1,276.......(177)....(14)%
KKR Fincl Holdings….......Dec…....372...........77.........295.....383%
First American Fincl........Dec…....212..........204............8.........4%
Mercury General……........Dec…....182..........572......(390)....(68)%
Total Big Financial…………........27,574....24,943......2,631......11%
Health Care (11 Big Corps)
Amgen………………............Dec…..5,317......5,204.........113.........2%
Gilead Sciences……..........Dec…..3,914......3,502.........412.......12%
McKesson(16)……….........Mar.....1,864......1,557........307.......20%
Allergan(17)………….........Dec…..1,149.........849.........300......35%
Intuitive Surgical…….......Dec….....572.........396.........176......44%
Varian Medical Systems...Sep….....533.........475..........58......12%
CareFusion…………...........Jun….....357.........343..........14.........4%
Health Net(18)……….........Dec….....331.........256..........75.......29%
Beckman Coulter……........Dec….....309.........184........125.......68%
Watson Pharma……….......Dec….....251.........363.......(112).....(31)%
Bio Rad Labs………….........Dec….....220.........186..........34........18%
Total Big Health Care……………...14,817....13,315.....1,502.......11%
All Other Industries (25 Big Corps)
Disney………………............Sep…..6,627......5,658.........969.......17%
DIRECTV(19)………..........Dec…..3,514......2,325.......1,189.......51%
Northrop Grumn(20)......Dec…..2,826......2,266.........560.......25%
GAP…………………...........Jan 11...1,982......1,816.........166........9%
PG&E…………………...........Dec…..1,660......1,694.........(34)......(2)%
Edison International…....Dec…..1,657.........854........803.......94%
Clorox………………............Jun….....925.........811.........114.......14%
Safeway(21)………….........Dec….....881......1,021.......(140).....(14)%
Mattel…………………..........Dec…....847.........660.........187.......28%
Sempra Energy……..........Dec….....786......1,476......(690)....(47)%
Ross Stores………….......Jan 10......719.........495.........224.......45%
Public Storage(22)….......Dec….....689.........798.......(109).....(14)%
URS………………….............Dec….....514.........468..........46.......10%
Ingram Micro…………......Dec….....438.........269.........169.......63%
Guess?(23)………….......Jan(23).....395.........298..........97.......33%
Jacobs Engineering…......Sep….....392.........624.......(232)....(37)%
Del Monte Foods…….......Apr….....382.........227........155.......68%
Avery Dennison(24).......Dec….....351...........41.........310.....756%
Reliance Steel&Alum......Dec….....296.........195.........101.......52%
Williams Sonoma(25)..Jan(25)....280...........(1).........281.......NM
CB Richard Ellis Grp.......Dec….....272...........(1)........273.......NM
Levi Strauss…………........Nov….....236.........190..........46.......24%
Waste Connections…......Dec….....225.........175..........50.......29%
KB Home……………..........Nov…....(76).......(311)........235.......76%
Ryland Group………........Dec….....(85).......(260).......175.......67%
Total Big Other Industries…….26,733....21,788.....4,945.......23%
Total all 85 CA Big Corps…...209,728..144,432...65,296......45%
(1) Qualcomm 2009 PTI excludes large Litigation and Fine Charges.
(2) Ebay 2009 PTI excludes Gain on Sale of Skype.
(3) Seagate Techonology 2009 PTI excludes huge Intangible Asset Impairment Charge.
(4) Symantec 2009 PTI excludes large Goodwill Impairment Charge.
(5) Activision Blizzard PTI for both years exclude large Intangible Asset Impairment Charges.
(6) Juniper Networks 2009 PTI excludes large Litigation Settlement Charges.
(7) Agilent Technologies 2010 PTI excludes Gain on Sale of Business.
(8) NetApp 2009 PTI excludes large US Government Settlement Charge.
(9) Xilinx 2009 PTI excludes Gain on Debt Extinguishment.
(10) Advanced Micro Devices 2010 PTI excludes Large Legal Settlement Gain and large Deconsolidation Gain. AMD's 2009 PTI excludes huge Legal Settlement Gain.
(11) KLA Tencor 2009 PTI excludes large Intangible Asset Impairment Charge.
(12) Atmel 2010 PTI excludes large Loss on Asset Sale and 2009 PTI excludes large Asset Impairment Charge.
(13) Electronic Arts earnings information in both years is for the 12 Months ended December.
(14) Visa 2009 PTI excludes large Gain on Sale of Visa Brasil Investment.
(15) Charles Schwab 2010 PTI excludes large Litigation Charge.
(16) McKesson 2009 PTI excludes large Litigation Charge.
(17) Allergan 2010 PTI excludes both large Legal Settlement Charge and large Intangible Asset Impairment Charge.
(18) Health Net 2009 PTI excludes both large Asset Impairment Charge and large Loss on Sale of Business.
(19) DIRECTV 2009 PTI excludes large Liberty Transaction Charge.
(20) Northrop Grumman 2010 PTI excludes large Debt Redemption Loss.
(21) Safeway 2009 PTI excludes huge Goodwill Impairment Charge.
(22) Public Storage is an publicly-held REIT.
(23) Guess? earnings information in both years is for the 12 Months ended October.
(24) Avery Dennison 2009 PTI excludes large Intangible Asset Impairment Charge.
(25) Williams Sonoma earnings information in both years is for the 12 Months ended October.
I have researched so far the 2010 Core Pretax Earnings of Big Corps in 14 of the largest US States, and I have now run into my second nearly miraculous occurrence.
The first one is Michigan's Big Corp Total Profits switching from a $31.4 bil Pretax Loss in 2009 to a $25.2 Pretax Profit in 2010, a $56.6 bil positive swing in profits in just one year, driven mainly by the resurrected Auto Industry.
The second one is just what happened to Big Corps in California's High Tech Industry in 2010.
As you can see in the above Earnings Chart, sorted by sector, the Total Pretax Profits of the 40 Big Corps in California's High Tech sector, advanced from $60.6 bil in 2009 to $100.9 bil in 2010, an increase of $40.3 bil, or 67%.
And all 40 California High Tech Big Corps had increases in earnings in 2010, with only 2 of them having single-digit percentage earnings growth, and with an amazing 20 of them, or in other words, precisely half of them, having at least triple-digit percentage earnings growth. I'm not kidding! Just count them.
I knew that Silicon Valley was recently during very well. However, I had no idea it was this incredibly well. Given these outstanding earnings numbers, I am certain that Silicon Valley executives, employees, and stockholders are very happy with how the Obama Administration has worked with them to help revitalize the technology sector.....the country's unparalleled strength.
I don't agree with the many economists who think the payroll tax holiday is going to drive US GDP growth in 2011. Instead, what will drive economic growth is the 100% tax expensing of equipment and the extension of the R&D tax credit for two years.
Thus, I think you'll see the technology sector have another robust year of earnings in 2011.....it won't average another 67% growth, but it will still be a very healthy increase. The 100% tax expensing will apply to all of 2011. Also, I think that the R&D tax credit will be made permanent, and perhaps even enhanced, in a reasonably short period of time.....if we could just get the US Congress to keep from going off target on what issues to address.
The country will find 100% tax expensing so popular and effective that come December 2011, if the US unemployment rate is still above 7% (it probably will be), I think it would be wise to extend it for another year.
I also think you'll see some form of tax credits on Green Energy Efficiency Building Retrofit Upgrades and on Energy Renewables pass this year, and probably fairly soon....again if only we can get the off-target US Congress to focus on the critical issues. This initiative should revitalize a depressed construction industry, should help the very troubled Commercial Property Sector, should put nice dents in the US unemployment and underemployment rates, and should also assist the US on its path to reaching its key goal of energy independence. Silicon Valley will be particularly helped here because it will be one of the places where a lot of the cutting-edge research on Energy Efficiency and Energy Renewables will be conducted.
Reviewing other California Industry Sectors, you can see the Windfall Profits in the Big Oil sector. The earnings growth of California's Big Oil (Chevron and Occidental Petroleum) precisely matched the earnings growth of California's Technology sector....both at nose-bleed 67% growth.
And look how high Chevron's Earnings are. Chevron's 2010 Pretax Earnings of $32.1 bil, are 73% higher than California's High Tech highest earner, Apple, whose 2010 earnings were $18.5 bil.
And Occidental Petroleum's 2010 Pretax Earnings of $7.6 bil were just below the 6th highest California Tech earner, Oracle, which earned $8.2 bil.
I am looking forward to seeing how the State of Texas Pretax Earnings will come out, as compared to the Big 2 US States: California and New York.
Clearly, something has to be done to put the US on the correct path to energy independence, and to simultaneously rein in the Windfall Profits of US Big Oil. It doesn't seem that the US Congress thinks this is an important enough priority, since it keeps working on other issues. But US citizens know that it clearly is.
I think it is also helpful to see how these California Big Corps have weathered the Great Recession.
Below here is the Pretax Income(Loss) for each of these California Big Corps, sorted by Industry Sector, for each of the past 5 years. These below Pretax Income numbers exclude large Asset Impairment Charges, large In Process R&D Charges, large non-recurring Litigation and Other Charges, and large non-recurring Gains.
.................................................Pretax Income(Loss)....................
................................2010.......2009.......2008.......2007......2006
.............................(all amounts are in millions of dollars)
Technology (40 Big Corps)
Apple……...............18,540.....12,066......8,947......5,008.....2,818
Intel…………...........16,045.......5,704......7,686......9,166.....7,068
HP…………..............10,974.......9,415.....10,473......9,177....7,191
Google…….............10,796.......8,381.......6,948......5,674.....4,011
Cisco Systems..........9,415.......7,693....10,255......9,461.....7,633
Oracle……................8,243.......7,834......7,834......5,986.....4,810
Qualcomm..............4,034........3,089......3,826......3,626.....3,156
Ebay………...............2,098........1,429......2,184.......2,142.....1,547
Seagate Technology.1,569........(494)......1,318..........561.......924
Western Digital........1,520..........501..........981.........443.......382
Yahoo……................1,466..........824.......1,172......1,000....1,210
Sandisk……..............1,457..........504.........(931)........398.......657
Applied Materials....1,387........(486).......1,409......2,440....2,167
Broadcom…............1,097............72..........394.........219........367
Adobe Systems..........943..........702.......1,079.........947.......680
Marvell Technology...910..........343..........171........(118)........87
Altera………................868..........306.........419.........338........360
Symantec…................826..........816.........623.........632........363
Activision Blizzard.....818..........401........(187)........175........106
Intuit……….................815..........653.........690.........696........616
Juniper Networks.......778.........494.........729.........511........386
CheckPoint Software...564.........446.........386.........329........338
Agilent Technologies..560.............7.........815.........670........506
Linear Technology.....490.........369.........509.........570........617
NetApp………..............447.........137.........383.........360........350
Dolby Labs.................437.........371.........302.........209........147
Lam Research............430........(263)........577.........848........440
Xilinx………................422..........383.........469.........431........457
VMWare……..............416..........223..........319.........240........123
Adv Micro Devices....363........(834).....(1,255).....1,479........376
Aecom Technology...341..........278..........236.........164..........93
Novellus Systems......305..........(69)...........(7)........315........339
Maxim Integr Prod....300...........35.........483.........414........572
KLA Tencor…............291.........(156)........560........677........378
Autodesk………..........272............85.........382........470........367
Nvidia…………............271..........(82).........(43)........901........494
Natl Semiconductor..269..........114..........451.........531........695
Netflix…………...........268..........192..........132.........111...........80
Atmel…………............216..........(45)..........(14).........52...........21
Electronic Arts……...(348).......(845).......(369).......138.........389
Total Technology.100,913....60,593....70,336....67,391...53,321
Oil and Gas (2 Big Corps)
Chevron………........32,055....18,528....43,057....32,274....32,046
Oxy Petroleum...……7,636......5,265....12,176......8,578......7,484
Total Big Oil............39,691....23,793....55,233....40,852...39,530
Financial (7 Big Corps)
Wells Fargo….........19,001....17,998......3,300....11,627....12,650
Visa…………..............4,638......3,527......2,806......1,266........722
Franklin Resources..2,070.....1,289.......2,248......2,465......1,836
Charles Schwab........1,099......1,276......2,028......1,853......1,476
KKR Financial…….......372...........77.....(1,078).......217.........126
First American Fincl...212.........204........(116).......(209).......372
Mercury General…......182.........572........(451).......293.........312
Total Big Financial..27,574....24,943.....8,737....17,512....17,494
Big Health Care (11 Big Corps)
Amgen……………........5,317......5,204......5,015......4,551......5,251
Gilead Sciences……….3,914......3,502......2,673......2,270.....1,756
McKesson……….........1,864......1,557......1,457......1,297......1,171
Allergan………….........1,149.........849.........762........688.........559
Intuitive Surgical….....572.........396..........335........237.........120
Varian Medical Systs...533.........475.........426.........346.........319
CareFusion……….........357.........343.........443.........199.........220
Health Net…………........331.........256.........147.........359.........479
Beckman Coulter……...309.........184.........239.........293.........215
Watson Pharma...........251.........363.........358.........224...........87
Bio Rad Labs……..........220.........186.........143.........121..........142
Total Health Care....14,817....13,315....11,998.....10,585....10,319
All Other Industries (25 Big Corps)
Disney……………........6,627......5,658......7,402......7,725.....5,324
DIRECTV………….......3,514......2,325......2,471......2,388......2,299
Northrop Grumman.2,826......2,266......2,540......2,698......2,316
GAP……………….........1,982......1,816......1,584.......1,406......1,315
PG&E……………..........1,660......1,694......1,623.......1,545......1,545
Edison Intl…………....1,657........854.......1,944.......1,799......1,855
Clorox……………..........925........811..........693..........743.........653
Safeway…………...........881......1,021......1,505.......1,404......1,240
Mattel……………..........847........660.........488..........703.........684
Sempra Energy….......786......1,476......1,443........1,550......1,914
Ross Stores……..........719........495.........425...........398.........328
Public Storage……......689........798.........645..........458.........314
URS………………...........514........468.........414..........235.........199
Ingram Micro…….......438........269.........361..........385.........367
Guess?……………..........395........298.........319..........311.........196
Jacobs Engineering….392........624.........658..........449.........305
Del Monte Foods….....382........227.........190..........167.........216
Avery Dennison…......351..........41..........271..........375.........435
Reliance Steel……......296.........195.........767..........654.........571
Williams Sonoma…....280..........(1)..........42...........316.........337
CB Richard Ellis Grp...272..........(1).........133..........592.........523
Levi Strauss…….........236.........190.........369..........376.........345
Waste Connections....225.........175.........172..........174.........139
KB Home…………........(76).......(311)......(968).......1,354.........572
Ryland Group…….......(85)......(260)......(406).......(420)........567
Total Other
....Industries.........26,733...21,788....25,085....27,785....24,559
Total all 85 CA
....Big Corps........209,728..144,432..171,389..164,125..145,223
As you can see in the Total columns just above, here is the five-year Total Annual Pretax Income, as well as the Annual Percentage Change from the immediately preceding year, for all of these 85 California Big Corps.
.....2006 Pretax Income...$145 bil
.....2007 Pretax Income...$164 bil...Up 13%
.....2008 Pretax Income...$171 bil...Up 4%
.....2009 Pretax Income...$144 bil...Down 16%
.....2010 Pretax Income...$210 bil...Up 45%
Unlike in the other 13 large US States that I have studied, California's Total Pretax Income before 2010 peaked in 2008, whereas it peaked in either 2006 or 2007 in the other 13 large US States. This is mainly due to Big Oil company profits peaking in 2008, the last year of the Bush/Cheney Presidential term.
But the incredible thing is that California Big Corps Total Pretax Income is substantially higher in 2010 than it was before the Great Recession. In fact, California Big Corps 2010 Total Pretax Income of $210 bil was a massive $45.6 bil, or 28%, higher than it was just before the Great Recession.
And looking at the individual California Industry Sectors, it amazes me just how powerfully robust California's Tech Sector is. Here is the five-year Total Annual Pretax Income, as well as the Annual Percentage Change from the immediately preceding year, for all of these 40 California Big Tech Corps.
.....2006 Pretax Income....$53 bil
.....2007 Pretax Income....$67 bil...Up 26%
.....2008 Pretax Income....$70 bil...Up 4%
.....2009 Pretax Income....$61 bil...Down 14%
.....2010 Pretax Income...$101 bil...Up 67%
Yeah, since 2006, which included the Great Recession that lasted for nearly three years, California's Tech Big Corps registered 2010 Total Pretax Income of $101 bil, which was $47.6 bil, or an incredible 89%, higher than the $53 bil of Total Pretax Income registered by these same companies in 2006.
And as you can see from the above charts, the Total Pretax Profits in both the California Financial and California Health Care Sectors have also more than recovered from the Great Recession.
So which California Big Corps had the highest Pretax Income in 2010 as compared with their pre-Great Recession average profits in 2006 and 2007? Here's the top ten list:
.............................................Average
.....California...........PTI............PTI.............PTI
......Big Corp...........2010......2006-07.....Step-Up
..............................(in millions of dollars)
Apple…….............18,540.........3,913........14,627
Intel………….........16,045.........8,117..........7,928
Wells Fargo….......19,001.......12,139..........6,863
Google……............10,796........4,843..........5,954
Visa…………............4,638...........994...........3,644
Oracle……..............8,243.........5,398..........2,845
Hewlett Packard..10,974.........8,184..........2,790
Gilead Sciences......3,914.........2,013..........1,901
DIRECTV...............3,514.........2,344..........1,171
Western Digital......1,520...........413...........1,108
And then here's the 14 California Big Corps, whose earnings were so consistent that they increased in each year of the entire most recent five-year period, more than half of which included the Great Recession.
.................................................Pretax Income(Loss)....................
................................2010.......2009.......2008.......2007......2006
.............................(all amounts are in millions of dollars)
Technology (5 Big Corps)
Apple……...............18,540.....12,066......8,947......5,008.....2,818
Google…….............10,796.......8,381.......6,948......5,674.....4,011
Dolby Labs.................437..........371.........302.........209........147
Aecom Technology....341..........278..........236.........164..........93
Netflix…………............268...........192..........132.........111...........80
Financial (1 Big Corp)
Visa…………..............4,638.......3,527......2,806.......1,266.......722
Big Health Care (5 Big Corps)
Gilead Sciences……….3,914......3,502......2,673......2,270....1,756
McKesson……….........1,864......1,557.......1,457......1,297.....1,171
Allergan………….........1,149.........849.........762.........688........559
Intuitive Surgical…......572.........396.........335.........237........120
Varian Medical Systs...533.........475.........426..........346........319
All Other Industries (3 Big Corps)
GAP………………..........1,982......1,816......1,584.......1,406.....1,315
Ross Stores……............719.........495.........425..........398........328
URS……………….............514.........468.........414..........235........199
With so many Health Care stocks included above, it is easy to see why the stock market values health care stocks at a premium. But then on the downside, these incredibly consistent earnings in the health care industry may provide a clue as to why health care costs in the US keep going up and up, year after year, bankrupting the US government.
When you analyze all of the above data, the key question that has to be asked is....have California citizens fared as well as California Big Corps in the past three years or so? Clearly, they haven't even come close.
I think it is only fair that California's Big Corps pay their fair share of the amount needed to balance the California State Budget. I don't think its right to just put it all on the backs of California citizens.
I do think that the State of California might be under-projecting Corporate Income Tax receipts for the next couple of years. These 85 California Big Corps generated $65 bil of higher Total Pretax Income in 2010 than they did in 2009. My hunch is that most of these California Big Corps probably are making their quarterly estimated corporate income tax payments to the State based on the substantially lower Income numbers of the previous year. Thus, there has to be a huge catch-up Corporate Income Tax Payment shortly coming down the road.
Also, in the next year, most of these California Big Corps will be basing their quarterly estimated income tax payments based on a substantially stepped-up Income number. Thus, this will provide a second dose of much higher than normal Corporate State Income Tax Receipts to the State.
Further, in the next year, most of these California Big Corps should get robust earnings increases, due in no small part to the first-year 100% tax expensing of Equipment purchases. Thus, this will provide a third dose of much higher than normal State Corporate Income Tax Receipts to the State.
Finally, in the following year, most of these California Big Corps will be basing their quarterly estimated income tax payments based on a even much higher Income number. Thus, this will provide a fourth dose of much higher than normal Corporate State Income Tax Receipts to the State.
I'm sure California has its act together and is already decoupled from the US Federal Government on its 100% first-year tax expensing of Equipment. Thus, there won't be any State tax revenue loss from this highly-energized federal tax incentive.
The above research, where I found 85 California Big Corps, which had 2010 total earnings growth of 45%, was performed through the end of March 2011. Since then, in April and May 2011, I extended this research, and I found 18 additional California Big Corps, which in total generated earnings growth of 133%, nearly triple that 45% earnings growth, and are shown here below.
..........................................2010.......2009.........Increase
...........................................Core........Core........(Decrease)
.......State..........................PTI(L)......PTI(L).....Amount.....%
..............................................(millions of dollars)....
Late Big Corp Additions
California (18)
Toyota Mtr Credit Corp(1)..2,618......1,009........1,609....159%
Pacific Life Insurance(1A)....580.........464...........116......25%
Flextronics(2)......................528........(340).........868....255%
First Republic Bank..............470.........606.........(136)...(22)%
Life Technologies.................442.........195...........247....127%
Herbalife Ltd(3)....................380.........291............89......31%
HCP(4).................................389........277...........112......40%
Hansen Natural Corp............349.........336............13........4%
Edwards Lifesciences(5).......268.........217.............51......24%
ResMed................................261.........202.............59......29%
East West Bancorp(6)...........256........(366)..........622....170%
Copart..................................239.........228.............11........5%
Synopsys..............................199.........233............(34)...(15)%
SVB Financial........................198...........46...........152....330%
VCA Antech..........................192.........220...........(28)...(13)%
DreamWorks Animation........176........202...........(26)...(13)%
Tutor Perini..........................159.........205...........(46)...(22)%
PMI Group..........................(799)....(1,061)..........262.....25%
Total 18 CA Late Additions..6,905......2,964........3,941..133%
(1) Toyota Motor Credit Corp has a March fiscal year end. The above earnings numbers are for the 12 months ended December.
(1A) Pacific Life is a Mutual Company.
(2) Flextronics is a Singapore Corp, but with its external CPA firm located in San Jose, CA. Its earnings numbers above are for the 12 months ended December.
(3) Herbalife Ltd is a Cayman Islands Corp, but with a Los Angeles, CA external CPA firm.
(4) HCP is an REIT. Its 2009 PTI excludes both a Litigation Provision and an Asset Impairment charge.
(5) Edwards Lifesciences 2009 PTI excludes Gains on Asset Sales.
(6) East West Bancorp 2009 PTI excludes large Gains on Acquisitions.
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Late Addition Not Included Above
..........................................2010.......2009.........Increase
...........................................Core........Core........(Decrease)
.........................................PTI(L)......PTI(L).....Amount.....%
..............................................(millions of dollars)....
Unionbancal......................793.........(226).........1,019....551%
