In my most recent two posts, I summarized key financial information related to the 24 largest US Corps, with Worldwide Pretax Income exceeding $10 bil each in the most recent year, and related to the 30 second largest US Corps, with Pretax Income between $5 bil and $10 bil.
In this post, I will summarize similar key financial information related to the 42 third largest US Corps, with Worldwide Pretax Income between $3 bil and $5 bil each in the most recent year.
Here is the detailed information for these 42 third most profitable US Corps:
..............................................................US........Effective
...........................................................Current........US
...........................................................Federal.... Federal
..........................................................Income......Income
...........................................World.........Tax...........Tax
............................................Wide.........Paid..........Rate
.............................................PTI........(Benefit)......Paid
............................................(mils of dollars)
Multinational Corps
Texas Instruments............4,551.........1,347........29.6%
Prudential Financial....4,422........(722).....(16.3)%
NewsCorp.........................4,177...........823.........19.7%
Qualcomm (1)...................4,034...........151...........3.7%
Newmont Mining..............3,997...........214...........5.4%
Gilead Sciences.................3,914...........853..........21.8%
Corning.........................3,845...............0...........0.0%
Caterpillar........................3,750...........247...........6.6%
Medtronic........................3,723...........379..........10.2%
DuPont..........................3,711..........(109).........(2.9)%
Bank of NY Mellon......3,694.........(670).......(18.1)%
ACE, Ltd (2).....................3,667...........443...........12.1%
Kraft Foods...................3,642.............91............2.5%
AFLAC.............................3,585...........349............9.7%
Devon Energy..................3,568...........244............6.8%
Colgate Palmolive (3).......3,430...........427..........12.4%
Dell..................................3,350...........597..........17.8%
Hess...............................3,311.............151............4.6%
Mosaic...........................3,271............135...........4.1%
Bunge Ltd........................3,050.............33............1.1%
Deere...............................3,025...........574.........19.0%
Archer Daniels Midland...3,015............251...........8.3%
Total 22 Multinationals..80,732........5,808...........7.2%
Predominantly Domestic Corps
Visa................................4,638.........1,089.........23.5%
Boeing.........................4,507.............13...........0.3%
Target............................4,495.........1,086.........24.2%
Union Pacific..................4,433...........862..........19.4%
WellPoint.......................4,354.........1,330.........30.5%
Capital One Fincl.......4,330.........(152).........(3.5)%
Travelers.......................4,306...........846..........19.6%
Exelon...........................4,221...........506..........12.0%
US Bancorp....................4,200........1,105..........26.3%
PNC Fincl Services....4,061.........(207).........(5.1)%
MetLife.......................3,958............141...........3.6%
Time Warner..................3,919...........764..........19.5%
Lockheed Martin............3,826...........589..........15.4%
General Dynamics..........3,790...........847..........22.3%
DirecTV.........................3,514............391..........11.1%
Walgreens......................3,373........1,129..........33.5%
Lowe's............................3,228........1,171..........36.3%
Southern Co...................3,066............42.............1.4%
BlackRock......................3,021..........708..........23.4%
AXA Equitable............3,015............34.............1.1%
Toyota Motor Credit.3,003..........(26)........(0.9)%
Total 21 Domestic.........81,258......12,268..........15.1%
Total all 43.................161,990......18,076...........11.2%
(1) Qualcomm's above US Current Federal Income Tax number is adjusted for the estimated cumulative catch up entry related to the change in the treatment for the tax effect of the Unearned Revenue amounts.
(2) ACE, Ltd gets 61% of its revenues and 58% of its profits in North America. The US Federal Income Tax Paid includes all worldwide current income taxes paid.
(3) Colgate Palmolive above US Current Federal Income number also includes US State Income Tax Paid, as well as both US Federal and US State Deferred Income Tax Expense.
There is a clear pattern here.....the larger the US Corp, the lower the effective US Federal Income Tax Rate Paid (ETR), as you can see here below:
......................................................................................ETR
24 Corps with Pretax Income above $10 bil...................7.2%
30 Corps with Pretax Income between $5 and $10 bil....9.8%
43 Corps with Pretax Income between $3 and $5 bil.....11.2%
These incredibly low effective US Federal Income Tax Rates Paid show the dominance of Big Corps over the US Congress and also show how this dominance increases with the size of the Big Corp. Small and medium-sized businesses have no chance in this kind of unfair tax environment.
Visionary US Tax Policy would attempt to reverse the above trend.....it is upside down. US job creation comes from the small and medium-sized firms, not from the US Giant Corps. The tax incentives should be given to the companies creating the US jobs. Just the opposite is happening.
In reviewing the above Predominantly Domestic Corps, clearly there is something wrong with US Tax Policy when some large Financial Institutions have such incredibly low effective tax paid rates, and in some cases even getting Tax Refunds.....specifically, these US Federal Income Tax Rates Paid: PNC Financial a negative 5.1%, Capital One Financial a negative 3.5%, AXA Equitable only 1.1%, and MetLife only 3.6%.
And then look at the incredibly high effective US Federal Income Tax Refund Rates by the US Multinational Financial Corps, specifically these two.....Prudential Financial a negative 16.3%, and Bank of NY Mellon a negative 18.1%.
So, the large US financial institutions cause the US financial meltdown, and then they effectively get rewarded for doing this. The US Congress needs to do its job and properly legislate wise US Tax Policy.
WellPoint paid total State and Local Income Tax in the most recent year of only $29 mil, on US Pretax Income of $4,354 mil, thus an effective tax rate paid of 0.67% (yeah, that's less than a 1% tax rate on 100% US Income). These US State Governments are all under this incredible financial pressure, and WellPoint acts like this, by designing and taking advantage of every State tax dodge they can? No wonder their insurance premiums are so high. There's a culture there.
Focusing on which of these large US Multinational Corps are taking the most advantage of tax loopholes, which permits them to pay so little in US Federal Income Taxes, below are the 12 of them, whose US Federal Income Tax Paid Mix (i.e. US as a % of Worldwide) is significantly lower than their US Pretax Income Mix:
...................................US................................US
.................................Current..........................Tax
...................................Fed.............................Paid
...................................Inc............US...............vs
...................................Tax............PTI..........Income
...................................Mix...........Mix..........Spread
Boeing........................14%...........96%...........(82)%
DuPont.....................(32)%..........26%...........(57)%
MetLife.......................41%...........81%...........(40)%
Devon Energy.............49%..........82%...........(34)%
Corning.......................0%...........25%...........(25)%
Time Warner...............67%..........91%...........(24)%
Mosaic.......................26%...........45%...........(19)%
Kraft Foods.................11%..........29%...........(19)%
DirecTV......................63%..........80%...........(17)%
ArcherDanielsMdlnd..53%..........67%...........(14)%
General Dynamics......89%.........100%...........(11)%
Deere.........................61%...........68%............(6)%
And below here are the 29 third largest US Corps, with at least some international presence, which disclosed financial information needed for me to compute both the US Pretax Income Mix as well as the US Revenue Mix.
....................................................................US
.................................................................Income
......................................US...........US...........vs
.....................................PTI...........Rev.........Rev
.....................................Mix...........Mix......Spread
Hess.............................(3)%...........83%........(86)%
Dell..............................16%...........52%.........(35)%
Bunge Ltd......................1%............23%.........(22)%
Medtronic....................39%...........57%........(18)%
Prudential Financial.....54%...........69%........(15)%
Kraft Foods..................29%...........43%........(13)%
Caterpillar....................21%...........32%........(11)%
DuPont.........................26%...........36%........(11)%
DirecTV.......................80%...........86%..........(6)%
MetLife........................81%...........85%..........(4)%
Newmont Mining.........18%...........22%..........(4)%
ACE, Ltd......................58%...........61%..........(3)%
AFLAC.........................22%..........24%..........(2)%
Corning........................25%..........26%...........0%
Bank of NY Mellon........64%..........64%...........0%
Travelers....................100%..........94%...........6%
BlackRock.....................74%..........67%...........7%
Devon Energy...............82%..........73%...........9%
Mosaic..........................45%..........35%..........10%
Deere............................68%..........56%..........12%
Gilead Sciences.............65%...........53%..........12%
Colgate Palmolive.........37%...........23%..........13%
Archer Daniels Mdlnd...67%...........53%..........14%
Time Warner.................91%...........71%..........21%
NewsCorp.....................78%...........54%..........24%
Visa..............................86%...........58%..........28%
Boeing..........................96%...........59%..........36%
Qualcomm....................43%.............5%..........38%
Texas Instruments........83%...........11%..........72%
And below here are the 27 third largest US Corps, with at least some international presence, which disclosed financial information needed for me to compute both the US Pretax Income Mix as well as the US Asset Mix.
....................................................................US
.................................................................Income
......................................US...........US...........vs
.....................................PTI.........Asset.......Asset
.....................................Mix..........Mix.......Spread
Dell..............................16%..........73%........(56)%
Qualcomm...................43%..........91%........(48)%
DuPont........................26%..........69%........(44)%
Hess............................(3)%..........39%........(42)%
Medtronic...................39%..........77%........(39)%
Caterpillar...................21%..........51%.........(31)%
BlackRock...................74%...........99%........(25)%
Prudential Financial....54%..........76%........(22)%
Bunge Ltd.....................1%...........17%........(16)%
Kraft Foods.................29%..........45%........(15)%
Gilead Sciences...........65%..........76%........(11)%
Corning......................25%..........35%........(10)%
Time Warner...............91%..........99%.........(8)%
Archer Daniels Mdlnd.67%..........75%.........(8)%
Boeing........................96%.........100%.........(4)%
Bank of NY Mellon......64%..........66%.........(2)%
Mosaic........................45%..........47%.........(2)%
Newmont Mining........18%..........20%.........(1)%
Colgate Palmolive.......37%..........33%...........4%
DirecTV......................80%..........75%..........5%
MetLife.......................81%..........75%..........6%
Visa............................86%..........79%..........7%
AFLAC........................22%..........13%..........9%
NewsCorp...................78%..........65%.........13%
Deere.........................68%...........54%.........14%
Devon Energy.............82%..........63%.........19%
Texas Instruments......83%..........46%.........37%
From a quick review of the above two charts, Texas has clearly the most patriotic and one of the two least patriotic of these third largest groups of Big Corps.
The patriotic poster child here is Texas Instruments, whose US Pretax Income Mix of 83% just blows away both its US Revenue Mix of 11% and its US Asset Mix of 46%.
On the other hand, Texas-based Dell's US Pretax Income Mix of only 16%, pales in comparison with both its US Revenue Mix of 52% and its US Asset Mix of 73%.
Four other Big Corps here come out as pretty patriotic: NewsCorp, Deere, Colgate Palmolive, and Boeing.
On the other hand, these above four are clearly more than trumped by six other Big Corps, which come out really poor in the patriotic score: Hess, DuPont, Medtronic, Caterpillar, Kraft Foods and Prudential Financial.
When I get some time, I will research similar information related to the many Big US Corps with Worldwide Pretax Income ranging from $2 bil to $3 bil in the most recent year. It should be interesting.
