Through October 28th, 2011, 61 US Big High Tech Corps with Pretax Profits of at least $100 mil in any of the most recent three quarters, have reported their September 2011 Calendar 3Q Earnings.
How did they do?
Well, not really nearly as well as I had hoped for.
The Total Pretax Income of these 61 US Big High Tech Corps was $49.4 bil, an increase of 13% over the 3Q 2010. And if the truly remarkable Apple is excluded, the Total Pretax Income of the remaining 60 US Big High Tech Corps is reduced to $40.6 bil, which results in an increase of just 6% over the 3Q 2010.
But look at the following Total Earnings Growth Deceleration of these 61 US Big High Tech Corps:
Annual 2010 over Annual 2009.....+49%
1Q 2011 over 1Q 2010....................+26%
2Q 2011 over 2Q 2010....................+21%
3Q 2011 over 3Q 2010....................+13%
And this Total Earnings Growth Deceleration is even more pronounced for these 60 US Big High Tech Corps, without including Apple, as you can see below:
Annual 2010 over Annual 2009.....+49%
1Q 2011 over 1Q 2010....................+17%
2Q 2011 over 2Q 2010.....................+9%
3Q 2011 over 3Q 2010.....................+6%
How does this High Tech Earnings Growth Deceleration stack up with what happened to the largest 6 Big Oil Corps?:
......................................................61................6........Negative
................................................High Tech......Big Oil......Spread
Annual 2010 over Annual 2009..+49%.........+57%..........(8)%
1Q 2011 over 1Q 2010.................+26%.........+47%.........(21)%
2Q 2011 over 2Q 2010.................+21%.........+44%.........(23)%
3Q 2011 over 3Q 2010.................+13%.........+57%.........(44)%
And catch the absurdity of this fact.....These largest 61 US Big High Tech Corps generated Pretax Earnings in the 3Q 2011 of $49.4 bil, as compared with the largest 6 Big Oil Corps generating Pretax Earnings in the 3Q 2011 of $60.2 bil.
Yeah that's right, the 6 largest Big Oil Corps earned $10.8 bil more, or 22% more, than the 61 largest High Tech Corps that have released their 3Q Earnings so far. Ten times more largest High Tech Corps, but still 22% more Big Oil Corp profits.....Go Figure!
The US owned Big Three Oil Corps (Exxon Mobil, Chevron, and ConocoPhillips) generated more earnings ($37.2 bil) in the 3Q 2011, then did the top 9 stellar US Big High Tech Corps (Apple, Microsoft, IBM, Intel, Google, Oracle, HP, Cisco Systems, and Dell), whose comparable earnings totaled $36.8 bil.
Clearly, this is a devastatingly negative trend for the entire US economy and US job creation.
Just the opposite should be happening where the true US job creators, like the US Technology Sector, and all US small and US medium-sized businesses, should be generating the robust earnings growth, and the "Pseudo Job Creators", like the 1% Big Oil Industry, should be returning some of its windfall profits earned over the past decade to the 99%ers.
One of the main reasons for this massive Earnings Growth Deceleration in the US High Technology Sector, as well as in many other sectors, is due to the uncertainty caused by inappropriate actions by Republicans in both the US House and the US Senate. In their consistently recalcitrant, uncompromising political strategy, they stopped cold their critical Debt Ceiling Negotiations with the Obama Administration.
And they also declared dead-on-arrival the American Jobs Act, which contains many very strong job creating initiatives.
Standard & Poors had it correct when it downgraded the US Government Debt, due mainly to an uncompromising US Congress that is clearly broken, and not willing to work in the best interests of the country.
And since the most recent approval rating of the US Congress is 9%, then my hunch is that such approval rating of the US Republicans in the US Congress must be only about 5%, since they are the main drivers of this US Congressional Action to prevent desperately needed US job creation.
As one step, the US Congressional Super-Committee should right this incredible wrong by killing the tax incentives for the Pseudo Job Creators, like Big Oil Corps, US Big Financial Corps, and US Multinational Corps overdosing on shipping jobs overseas, and properly grant job-creating tax and other incentives to the true Job Creators, like all of the small and medium-sized US businesses and like the portion of the US Technology Sector that is properly reshoring jobs back to the US.
Anyway, here is the Pretax Income (PTI) of the 61 US Big High Tech Corps in the 3Q 2011, and as compared with such one-year earlier earnings:
...............................................3Q............3Q............Increase
.............................................2011.........2010........(Decrease)
............................................PTI(L).......PTI(L).....Amount......%
.............................................(in millions of dollars)......
Apple...................................8,791........5,461........3,330.....61%
Microsoft.............................7,306.......7,230.............76......1%
IBM.....................................5,027.......4,677............350......7%
Intel....................................4,892........4,251............641.....15%
Google.................................3,360.......2,714............646.....24%
Oracle..................................2,471.......1,795............676.....38%
Hewlett Packard(1)..............2,399........2,189............210.....10%
Cisco Systems(2)..................1,467.......2,418...........(951)..(39)%
Dell......................................1,091..........696............395.....57%
Accenture..............................935..........717............218.....30%
Corning..................................921..........799............122.....15%
EMC.......................................813..........638............175.....27%
Texas Instruments(3)............780........1,235..........(455)..(37)%
Applied Materials(4)..............669..........178............491....276%
Ebay......................................616..........517.............99......19%
Automatic Data Proc.............459..........436.............23.......5%
Xerox....................................367..........328.............39.....12%
Sandisk..................................363..........429...........(66)...(15)%
CA Technologies....................327..........290.............37.....13%
Agilent Technologies(5).........281..........100............181....181%
Broadcom..............................276..........336...........(60)...(18)%
Analog Devices......................275..........251.............24.....10%
Expedia.................................271..........239.............32.....13%
Thermo Fisher Scient.............265..........287...........(22)....(8)%
Symantec..............................263..........182.............81.....45%
Western Digital......................258..........211.............47.....22%
Adobe Systems......................257..........297...........(40)...(13)%
KLA Tencor...........................247..........223.............24.....11%
Motorola Solutions................237..........192.............45.....23%
Paychex.................................231..........202.............29.....14%
First Solar..............................223..........213.............10......5%
Altera....................................205..........238...........(33)...(14)%
Marvell Technology...............197..........222...........(25)...(11)%
Yahoo(6)...............................195..........223...........(28)...(13)%
VmWare................................183............97.............86.....89%
SAIC......................................182..........252...........(70)...(28)%
Nvidia...................................178.........(169)...........347...205%
NetApp..................................176..........178.............(2).....(1)%
Harris Corp............................176..........252...........(76)...(30)%
Maxim Integrated Prods........168..........175.............(7).....(4)%
Check Point Software.............168..........142.............26.....18%
BMC Software........................156..........144.............12......8%
Roper Industries...................153..........114.............39.....34%
Seagate Technology...............152..........153.............(1)....(1)%
Linear Technology................147..........189...........(42)...(22)%
Xilinx....................................146..........219...........(73)...(33)%
Flextronics............................145..........154.............(9)....(6)%
Jabil Circuit...........................141............83.............58.....70%
Amazon.com.........................130..........292..........(162)..(55)%
Cerner...................................123............94.............29.....31%
Juniper Networks..................121..........192...........(71)...(37)%
Citrix Systems.......................103............87.............16.....18%
Netflix.....................................94............65.............29.....45%
Lexmark..................................92............88..............4......5%
Lam Research..........................87..........223.........(136)..(61)%
Tech Data................................71............59.............12.....20%
Teradyne.................................57..........152...........(95)..(63)%
Novellus Systems....................55............79...........(24)..(30)%
Intuit (7)...............................(47)..........(78)............31.....40%
Micron Technology...............(78).........400.........(478).(120)%
Electronic Arts....................(380)........(218)........(162)...(74)%
Total all 61........................49,434.....43,832.......5,602.....13%
Total 60 Without Apple....40,643......38,371......2,272......6%
(1) Hewlett Packard 2010 PTI includes large restructuring charges.
(2) Cisco Systems 2011 PTI includes large restructuring charges.
(3) Texas Instruments 2011 PTI includes acquisition charge.
(4) Applied Materials 2010 PTI includes restructuring and asset impairment charges.
(5) Agilent Technologies 2010 PTI excludes gain on asset sale.
(6) Yahoo 2010 PTI excludes gain on sale of Hot Jobs.
(7) Intuit 2011 PTL excludes intangible asset charge.
Monday, October 31, 2011
Friday, October 28, 2011
US Big Oil Monster Earnings Growth Reaccelerates in 3Q 2011
The Big Six US Oil Corps registered a monstrous Total Pretax Earnings growth of 57% in annual 2010 over 2009.
Then on a slightly positive front to all US citizens and to all US companies other than Big Oil, this nosebleed Big Oil earnings growth decelerated a bit to 47% in the 1Q 2011, and further to 44% in the 2Q 2011.
So what happens in the most recent 3Q 2011?
Well, believe it or not, this incredibly outsized Big Oil earnings growth reaccelerated back up to 57% in the 3Q 2011, precisely matching the earnings growth in annual 2010.
Just about all US citizens, the 99%ers, have to be just furious with this, especially the unemployed seeking any job, the underemployed seeking a better job at a livable wage, and the full-time employed just trying to make ends meet.
And small US businesses have to also be furious, with the resultant cost pressure.
This isn’t right, and the Occupying Movement knows this. It wouldn’t surprise me if you see them start Occupying the Congressional Offices of many whole-hearted Congressional supporters of US Big Oil, or perhaps even Occupying many places located close to actual Big Oil Corporate offices and branches all around the country.
US Big Financial Corps have really hurt the US economy and US citizens. But frankly, I think US Big Oil Corps have been much more of a driver of continuing US unemployment and underemployment than have even US Big Financial Corps.
Below here are these 3Q 2011 Pretax Earnings (PTI), along with a comparison to the prior year’s 3Q 2010 amounts. I’ve included Royal Dutch Shell and BP, since they have such substantial US operations.
............................................PTI..........PTI...........................
............................................3Q............3Q..........Increase....
..........................................2011........2010.....Amount....%..
............................................(millions of dollars)
Big Oil 6 That Rule
Exxon Mobil....................18,680.....12,858......5,822....45%
Chevron..........................13,340.......6,873......6,467....94%
Royal Dutch Shell............12,538.......5,385......7,153...133%
BP(1)................................7,560.......7,247.........313......4%
ConocoPhillips(2).............5,180.......3,876......1,304....34%
Occidental Petroleum.......2,862.......2,025.........837....41%
Total all 6.......................60,160.....38,264.....21,896....57%
(1) BP PTI excludes Non-operating Items, primarily the Gulf Oil Spill Response Charges.
(2) ConocoPhillips 2010 PTI excludes large Gains on Asset Dispositions.
In the past decade, there has been a massive transfer of wealth from the 99%ers to 1% Big Oil and to all 1% beneficiaries of Big Oil. In all fairness, it is time for a massive reversal of this wealth away from 1% Big Oil back to the 99%ers, where it belongs. This is one of the many injustices that the historic Occupying Movement is all about correcting.
Then on a slightly positive front to all US citizens and to all US companies other than Big Oil, this nosebleed Big Oil earnings growth decelerated a bit to 47% in the 1Q 2011, and further to 44% in the 2Q 2011.
So what happens in the most recent 3Q 2011?
Well, believe it or not, this incredibly outsized Big Oil earnings growth reaccelerated back up to 57% in the 3Q 2011, precisely matching the earnings growth in annual 2010.
Just about all US citizens, the 99%ers, have to be just furious with this, especially the unemployed seeking any job, the underemployed seeking a better job at a livable wage, and the full-time employed just trying to make ends meet.
And small US businesses have to also be furious, with the resultant cost pressure.
This isn’t right, and the Occupying Movement knows this. It wouldn’t surprise me if you see them start Occupying the Congressional Offices of many whole-hearted Congressional supporters of US Big Oil, or perhaps even Occupying many places located close to actual Big Oil Corporate offices and branches all around the country.
US Big Financial Corps have really hurt the US economy and US citizens. But frankly, I think US Big Oil Corps have been much more of a driver of continuing US unemployment and underemployment than have even US Big Financial Corps.
Below here are these 3Q 2011 Pretax Earnings (PTI), along with a comparison to the prior year’s 3Q 2010 amounts. I’ve included Royal Dutch Shell and BP, since they have such substantial US operations.
............................................PTI..........PTI...........................
............................................3Q............3Q..........Increase....
..........................................2011........2010.....Amount....%..
............................................(millions of dollars)
Big Oil 6 That Rule
Exxon Mobil....................18,680.....12,858......5,822....45%
Chevron..........................13,340.......6,873......6,467....94%
Royal Dutch Shell............12,538.......5,385......7,153...133%
BP(1)................................7,560.......7,247.........313......4%
ConocoPhillips(2).............5,180.......3,876......1,304....34%
Occidental Petroleum.......2,862.......2,025.........837....41%
Total all 6.......................60,160.....38,264.....21,896....57%
(1) BP PTI excludes Non-operating Items, primarily the Gulf Oil Spill Response Charges.
(2) ConocoPhillips 2010 PTI excludes large Gains on Asset Dispositions.
In the past decade, there has been a massive transfer of wealth from the 99%ers to 1% Big Oil and to all 1% beneficiaries of Big Oil. In all fairness, it is time for a massive reversal of this wealth away from 1% Big Oil back to the 99%ers, where it belongs. This is one of the many injustices that the historic Occupying Movement is all about correcting.
Friday, October 21, 2011
Big US National/Regional Banks 3Q 2011 Earnings: High Growth, But Low Quality
In my most recent post, I reported that the Largest Big Six US Financial Corps had a very strong 3Q 2011 Total Pretax Earnings increase of 20%. These Big Six are:
Bank of America
Wells Fargo
JPMorgan Chase
Citigroup
Morgan Stanley
Goldman Sachs
And when I added GE Capital Services (GECS), then the Total Pretax Earnings in the 3Q 2011 of the Big Seven US Financial Corps was an even higher 25%.
In this post, I am focusing on the large US National and Regional Banks that are a bit smaller than the above six mega banks and GECS.
I now have found 21 of these banks, with Pretax Earnings or Losses of at least $100 mil each in either the 3Q 2011 or in the 3Q 2010, which have already reported their 3Q 2011 earnings.
How did they do? Well, even better than the Big Seven. These 21 Banks had a Total Pretax Earnings Increase of an exceptional 38%. Here they are, along with their 3Q 2011 Pretax Earnings (PTI):
..........................................3Q............3Q..........Increase
........................................2011.........2010......(Decrease)
.........................................PTI...........PTI.....Amount......%
........................................(in millions of dollars)......
US Bancorp.....................1,742........1,154........588......51%
Capital One Fincl.............1,235........1,153..........82.......7%
PNC Financial..................1,143..........954........189......20%
Bank NY Mellon.................945..........834.........111......13%
State Street Corp................629..........782.......(153)...(20)%
Fifth Third Bancorp(1).......530..........176.........354....201%
BB&T.................................439..........246.........193......78%
Key Corp...........................330..........296..........34......11%
M&T Bank..........................265..........287.........(22).....(8)%
SunTrust Banks..................259..........171..........88......51%
Northern Trust..................253..........237..........16.......7%
Huntington Bancshares.....182...........131..........51......39%
NY Community Bancorp...182...........210........(28)....(13)%
Regions Financial..............182.........(305).......487....160%
Zions Bancorp...................168...........(79).......247....313%
Hudson City Bancorp........139...........208........(69)....(33)%
First Republic Bank...........139...........115..........24......21%
BOK Financial...................128............93...........35......38%
Comerica..........................126............66...........60......91%
SVB Financial...................103............77..........26......34%
Synovus Financial..............37..........(181).......218....120%
Total all 21.....................9,156........6,625.....2,531.....38%
(1) Fifth Third Bancorp 2010 PTI excludes Litigation Settlement Gain.
The major reason for these much improved profits of these US Banks is the substantial, very puzzling Reduction in Loan Loss Provision Charges made by 18 of these 21 Banks.
These 18 Banks had a Total Increase in Pretax Income of $2.5 bil in the 3Q 2011 over the previous year's quarter. How much of this $2.5 bil increase is due just to Lower Loan Loss Provision Charges made? Well, more than all of it. In fact, 25% more than all of it. The Total Reduction in the Loan Loss Provision Charges of these 18 Banks from the previous year's 3Q was an incredible $3.2 bil.
...................................3Q 2011............3Q 2011
..................................Loan Loss.............PTI
..................................Provision...........Increase
..................................Decrease...........(Decrease)
..............................Over 3Q 2010....From 3Q 2010
......................................(millions of dollars)
BB&T............................520.....................193...........269%
US Bancorp..................476.....................588.............81%
Regions Financial.........405.....................487............83%
Fifth Third Bancorp......370.....................354...........105%
SunTrust Banks............268.......................88...........305%
Capital One Fincl..........245.......................82...........299%
PNC Financial..............225......................189...........119%
Zions Bancorp.............170......................247............69%
Synovus Financial.......137......................218............63%
Key Corp.......................84.......................34...........247%
Comerica......................84.......................60...........140%
Huntington Bancshares.75.......................51...........147%
M&T Bank......................35.....................(22)...........159%
Hudson City Bancorp....25.....................(69)............36%
BOK Financial................20......................35.............57%
NYCommunityBancorp.14.....................(28).............50%
Northern Trust..............12.......................16.............75%
SVB Financial................10.......................26.............38%
Total all 18...............3,175.................2,549...........125%
So the 99%ers, including US small businesses, who these 18 Big US Banks are making much of their profits from, have their financial status mostly deteriorate substantially in the past year, and these 18 Big Banks react to this by making just the opposite assessment, by reducing their Total Loan Loss Charges on their books by $3.2 bil.
Something just doesn't seem right here. The Occupy Movement all throughout the country, and all of their 99% supporters, including many small businesses, are spot on. The deck is stacked against them, the Big Corps are continually dealing from the bottom of the deck, and the US Government, especially the US Congressional Republicans, facilitate this patently unfair process, which is destroying the fabric of the US Democracy.
Bank of America
Wells Fargo
JPMorgan Chase
Citigroup
Morgan Stanley
Goldman Sachs
And when I added GE Capital Services (GECS), then the Total Pretax Earnings in the 3Q 2011 of the Big Seven US Financial Corps was an even higher 25%.
In this post, I am focusing on the large US National and Regional Banks that are a bit smaller than the above six mega banks and GECS.
I now have found 21 of these banks, with Pretax Earnings or Losses of at least $100 mil each in either the 3Q 2011 or in the 3Q 2010, which have already reported their 3Q 2011 earnings.
How did they do? Well, even better than the Big Seven. These 21 Banks had a Total Pretax Earnings Increase of an exceptional 38%. Here they are, along with their 3Q 2011 Pretax Earnings (PTI):
..........................................3Q............3Q..........Increase
........................................2011.........2010......(Decrease)
.........................................PTI...........PTI.....Amount......%
........................................(in millions of dollars)......
US Bancorp.....................1,742........1,154........588......51%
Capital One Fincl.............1,235........1,153..........82.......7%
PNC Financial..................1,143..........954........189......20%
Bank NY Mellon.................945..........834.........111......13%
State Street Corp................629..........782.......(153)...(20)%
Fifth Third Bancorp(1).......530..........176.........354....201%
BB&T.................................439..........246.........193......78%
Key Corp...........................330..........296..........34......11%
M&T Bank..........................265..........287.........(22).....(8)%
SunTrust Banks..................259..........171..........88......51%
Northern Trust..................253..........237..........16.......7%
Huntington Bancshares.....182...........131..........51......39%
NY Community Bancorp...182...........210........(28)....(13)%
Regions Financial..............182.........(305).......487....160%
Zions Bancorp...................168...........(79).......247....313%
Hudson City Bancorp........139...........208........(69)....(33)%
First Republic Bank...........139...........115..........24......21%
BOK Financial...................128............93...........35......38%
Comerica..........................126............66...........60......91%
SVB Financial...................103............77..........26......34%
Synovus Financial..............37..........(181).......218....120%
Total all 21.....................9,156........6,625.....2,531.....38%
(1) Fifth Third Bancorp 2010 PTI excludes Litigation Settlement Gain.
The major reason for these much improved profits of these US Banks is the substantial, very puzzling Reduction in Loan Loss Provision Charges made by 18 of these 21 Banks.
These 18 Banks had a Total Increase in Pretax Income of $2.5 bil in the 3Q 2011 over the previous year's quarter. How much of this $2.5 bil increase is due just to Lower Loan Loss Provision Charges made? Well, more than all of it. In fact, 25% more than all of it. The Total Reduction in the Loan Loss Provision Charges of these 18 Banks from the previous year's 3Q was an incredible $3.2 bil.
...................................3Q 2011............3Q 2011
..................................Loan Loss.............PTI
..................................Provision...........Increase
..................................Decrease...........(Decrease)
..............................Over 3Q 2010....From 3Q 2010
......................................(millions of dollars)
BB&T............................520.....................193...........269%
US Bancorp..................476.....................588.............81%
Regions Financial.........405.....................487............83%
Fifth Third Bancorp......370.....................354...........105%
SunTrust Banks............268.......................88...........305%
Capital One Fincl..........245.......................82...........299%
PNC Financial..............225......................189...........119%
Zions Bancorp.............170......................247............69%
Synovus Financial.......137......................218............63%
Key Corp.......................84.......................34...........247%
Comerica......................84.......................60...........140%
Huntington Bancshares.75.......................51...........147%
M&T Bank......................35.....................(22)...........159%
Hudson City Bancorp....25.....................(69)............36%
BOK Financial................20......................35.............57%
NYCommunityBancorp.14.....................(28).............50%
Northern Trust..............12.......................16.............75%
SVB Financial................10.......................26.............38%
Total all 18...............3,175.................2,549...........125%
So the 99%ers, including US small businesses, who these 18 Big US Banks are making much of their profits from, have their financial status mostly deteriorate substantially in the past year, and these 18 Big Banks react to this by making just the opposite assessment, by reducing their Total Loan Loss Charges on their books by $3.2 bil.
Something just doesn't seem right here. The Occupy Movement all throughout the country, and all of their 99% supporters, including many small businesses, are spot on. The deck is stacked against them, the Big Corps are continually dealing from the bottom of the deck, and the US Government, especially the US Congressional Republicans, facilitate this patently unfair process, which is destroying the fabric of the US Democracy.
Thursday, October 20, 2011
Big Six US Financial Corps: 3Q 2011 Earnings Up 20% to $27.4 Bil
Six US Financial Corps dominate the financial scene.
Especially given the historic, highly successful Occupy Wall Street movement, bent on positively changing the US economy due to its many injustices, I think it would be helpful to see just how well these Big Six Financial Corps are doing.
Well, the Total Pretax Earnings of these Big Six Financial Corps increased by 20% in the most recent 3Q 2011, over the previous year's 3Q.
I wonder how many of the 99%ers have had their financial situation improve by at least 20% in the most recent 3Q. My hunch is that it is 1% of them, at most.
Below here is the Pretax Income in the most recent 3Q 2011 of these Big Six.
..........................................3Q............3Q..........Increase
........................................2011.........2010......(Decrease)
.......................................PTI(L).........PTI.....Amount......%
........................................(in millions of dollars)......
Bank of America (1)........7,433........4,488......2,945......66%
Wells Fargo....................6,140.........5,176........964......19%
JPMorgan Chase............5,818.........6,203.......(385)......(6)%
Citigroup.......................5,020........3,299......1,721......52%
Morgan Stanley.............3,678...........801......2,877.....359%
Goldman Sachs...............(730)........2,811.....(3,541)..(126)%
Total Big Six................27,359.....22,778......4,581......20%
(1) Bank of America 3Q 2010 PTI excludes $10.4 bil Goodwill Impairment Charge. It this were included, the Total Earnings Increase of the Big Six would be 121%, rather than the above reported 20%.
Just below the Big Six in historical profitability is GE Capital Services (GECS), which is the financial wing of GE. GECS had an exceptionally strong 3Q 2011, with Pretax Earnings of $1,548 mil, up 276% from the $412 mil earned in the 3Q 2010.
When GECS is combined with the above Big Six, the Total 3Q 2011 Pretax Earnings of the Big Seven Financial Corps increased by a very strong 25% over the 3Q 2010.
One of the major reasons for these much improved profits of the Big Six is the Gains from the substantial widening of Interest Rate Spreads. Here are the four of them that reported 3Q 2011 Gains from the widening of Interest Rate Spreads:
.....Bank of America.....$6.2 bil
.....Morgan Stanley......$3.4 bil
.....Citigroup................$1.9 bil
.....JPMorgan Chase.....$1.9 bil
.....Total Gains............$13.4 bil
The only spread widening of the 99%ers is the negative one from the increased Underwater Mortgage Spread and the increased Underwater Education Loan Spread. The related home value asset and education value asset have both dropped precipitously from this horrible US economy, where only the Big Corps and the 1% continue to sparkle financially, while the other 99% are left to rust.
The second major reason for these much improved profits of the Big Six is the substantial, very puzzling Reduction in Loan Loss Provision Charges made by the Big Four that are heavy in making Loans.
The Big Four has a Total Increase in Pretax Income of $5.2 bil in the 3Q 2011 over the previous year's quarter. How much of this $5.2 bil increase is due just to Lower Loan Loss Provision Charges made? Well, more than all of it. In fact, 34% more than all of it. The Total Reduction in the Loan Loss Provision Charges of these Big Four from the previous year's 3Q was an incredible $7.0 bil.
...................................3Q 2011............3Q 2011
..................................Loan Loss.............PTI
..................................Provision...........Increase
..................................Decrease...........(Decrease)
..............................Over 3Q 2010....From 3Q 2010
......................................(millions of dollars)
Citigroup......................2,568................1,721.........149%
Wells Fargo...................1,634..................964.........170%
JPMorgan Chase..............812.................(385)........211%
Bank of America...........1,989................2,945..........68%
Total...........................7,003................5,245.........134%
GECS's 3Q 2011 Pretax Earnings also substantially benefited from lower Loan Loss Provision Charges, which were down by $617 mil from the 3Q 2010.
So the 99%ers, including US small businesses, who the Big Four are making much of their profits from, have their financial status mostly deteriorate substantially in the past year, and the Big Four react to this by making just the opposite assessment, by reducing their Total Loan Loss Charges on their books by $7.0 bil.
Something just doesn't smell right here. The Big Four boldly and substantially reduce their Loan Loss Provisions in the current quarter from a year ago, across the board, even though they have to know that their Loan Customers, in the aggregate, are in a much worse financial situation than they were a year ago. I call that pouring salt on the wounds of their financially suffering loan customers. It's just not right.
The Occupy Wall Street Movement, and all of their 99% supporters, including many small businesses, are spot on. The deck is stacked against them, the Big Corps are continually dealing from the bottom of the deck, and the US Government, especially the US Congressional Republicans, facilitate this patently unfair process, which is destroying the fabric of the US Democracy.
Especially given the historic, highly successful Occupy Wall Street movement, bent on positively changing the US economy due to its many injustices, I think it would be helpful to see just how well these Big Six Financial Corps are doing.
Well, the Total Pretax Earnings of these Big Six Financial Corps increased by 20% in the most recent 3Q 2011, over the previous year's 3Q.
I wonder how many of the 99%ers have had their financial situation improve by at least 20% in the most recent 3Q. My hunch is that it is 1% of them, at most.
Below here is the Pretax Income in the most recent 3Q 2011 of these Big Six.
..........................................3Q............3Q..........Increase
........................................2011.........2010......(Decrease)
.......................................PTI(L).........PTI.....Amount......%
........................................(in millions of dollars)......
Bank of America (1)........7,433........4,488......2,945......66%
Wells Fargo....................6,140.........5,176........964......19%
JPMorgan Chase............5,818.........6,203.......(385)......(6)%
Citigroup.......................5,020........3,299......1,721......52%
Morgan Stanley.............3,678...........801......2,877.....359%
Goldman Sachs...............(730)........2,811.....(3,541)..(126)%
Total Big Six................27,359.....22,778......4,581......20%
(1) Bank of America 3Q 2010 PTI excludes $10.4 bil Goodwill Impairment Charge. It this were included, the Total Earnings Increase of the Big Six would be 121%, rather than the above reported 20%.
Just below the Big Six in historical profitability is GE Capital Services (GECS), which is the financial wing of GE. GECS had an exceptionally strong 3Q 2011, with Pretax Earnings of $1,548 mil, up 276% from the $412 mil earned in the 3Q 2010.
When GECS is combined with the above Big Six, the Total 3Q 2011 Pretax Earnings of the Big Seven Financial Corps increased by a very strong 25% over the 3Q 2010.
One of the major reasons for these much improved profits of the Big Six is the Gains from the substantial widening of Interest Rate Spreads. Here are the four of them that reported 3Q 2011 Gains from the widening of Interest Rate Spreads:
.....Bank of America.....$6.2 bil
.....Morgan Stanley......$3.4 bil
.....Citigroup................$1.9 bil
.....JPMorgan Chase.....$1.9 bil
.....Total Gains............$13.4 bil
The only spread widening of the 99%ers is the negative one from the increased Underwater Mortgage Spread and the increased Underwater Education Loan Spread. The related home value asset and education value asset have both dropped precipitously from this horrible US economy, where only the Big Corps and the 1% continue to sparkle financially, while the other 99% are left to rust.
The second major reason for these much improved profits of the Big Six is the substantial, very puzzling Reduction in Loan Loss Provision Charges made by the Big Four that are heavy in making Loans.
The Big Four has a Total Increase in Pretax Income of $5.2 bil in the 3Q 2011 over the previous year's quarter. How much of this $5.2 bil increase is due just to Lower Loan Loss Provision Charges made? Well, more than all of it. In fact, 34% more than all of it. The Total Reduction in the Loan Loss Provision Charges of these Big Four from the previous year's 3Q was an incredible $7.0 bil.
...................................3Q 2011............3Q 2011
..................................Loan Loss.............PTI
..................................Provision...........Increase
..................................Decrease...........(Decrease)
..............................Over 3Q 2010....From 3Q 2010
......................................(millions of dollars)
Citigroup......................2,568................1,721.........149%
Wells Fargo...................1,634..................964.........170%
JPMorgan Chase..............812.................(385)........211%
Bank of America...........1,989................2,945..........68%
Total...........................7,003................5,245.........134%
GECS's 3Q 2011 Pretax Earnings also substantially benefited from lower Loan Loss Provision Charges, which were down by $617 mil from the 3Q 2010.
So the 99%ers, including US small businesses, who the Big Four are making much of their profits from, have their financial status mostly deteriorate substantially in the past year, and the Big Four react to this by making just the opposite assessment, by reducing their Total Loan Loss Charges on their books by $7.0 bil.
Something just doesn't smell right here. The Big Four boldly and substantially reduce their Loan Loss Provisions in the current quarter from a year ago, across the board, even though they have to know that their Loan Customers, in the aggregate, are in a much worse financial situation than they were a year ago. I call that pouring salt on the wounds of their financially suffering loan customers. It's just not right.
The Occupy Wall Street Movement, and all of their 99% supporters, including many small businesses, are spot on. The deck is stacked against them, the Big Corps are continually dealing from the bottom of the deck, and the US Government, especially the US Congressional Republicans, facilitate this patently unfair process, which is destroying the fabric of the US Democracy.
Tuesday, October 18, 2011
3Q 2011 Earnings: Very Early Insight…..Clear Earnings Growth Deceleration
There were 54 US Corps, with earnings or losses of at least $100 mil each in each of the most recent three quarters, with either July or August quarter ends, which have released their 3Q 2011 Earnings.
From a review of them, the clear conclusion is a significant earnings growth deceleration from the previous year’s quarter, as you can see below here:
Total Pretax Earnings Growth 1Q 2011…..20%
Total Pretax Earnings Growth 2Q 2011…..13%
Total Pretax Earnings Growth 3Q 2011……8%
And this Total Earnings Growth Deceleration was widespread, as you can see here below:
..................................Total 2011 Earnings Growth
..............................................3Q.......2Q.......1Q
.......................# of
....................Big Corps
Technology.....15.................10%.....19%.....28%
Retail..............23...................5%.......4%.....11%
Other Sectors..16.................14%.....24%.....39%
All Sectors......54...................8%.....13%.....20%
If this is what’s happening to the US largest corporations, which have been both dramatically and continually “propped up” by both US Government and Fed actions, I can just imagine how badly many of the neglected US small businesses have done on the earnings front in the most recent three quarters.
The many very astute Occupying Protesters on Wall Street and around the globe know that this significant US earnings growth deceleration is mainly "on the Republicans" in both the US House and in the US Senate, due to their irresponsible actions in both the Grand Bargain Talks Collapse as well as in the horrific Debt Ceiling Negotiations, which even resulted in the highly embarrassing US Debt Downgrade by Standard and Poors.
Below here is the Pretax Income (PTI) in the 3Q 2011 of these 54 Big US Corps.
.........................................3Q.........3Q....Increase (Decrease)
.......................................2011......2010......Amount.....%
........................................(millions of dollars)
Technology
Oracle............................2,471.....1,795.........676......38%
Hewlett Packard(1)........2,399......2,189.........210......10%
Cisco Systems(2)............1,467.....2,418........(951)....-39%
Dell................................1,091........696.........395......57%
Accenture........................935........717.........218......30%
Applied Materials(3)........669........178..........491....276%
Agilent Technologies(4)...281........100..........181.....181%
Analog Devices................275........251............24......10%
Adobe Systems................257........297..........(40)....-13%
Paychex...........................231........202...........29......14%
Marvell Technology.........197........222..........(25)....-11%
SAIC................................182........252..........(70)....-28%
Nvidia.............................178.......(169).........347....205%
NetApp...........................176........178............(2).......-1%
Micron Technology.........(78).......400........(478)..-120%
Total 15 Technology...10,731.....9,726.......1,005.....10%
Retail
Walmart......................5,805.....5,705.........100.......2%
Home Depot................2,148......1,901..........247.....13%
Lowes.........................1,329......1,335............(6)......0%
Target.........................1,109......1,081............28.......3%
Walgreens(5).................817........728............89......12%
Costco...........................772........684............88......13%
TJX................................559........496............63......13%
Kohls.............................475........410............65......16%
Autozone......................470........423............47......11%
Macy's...........................395........240...........155......65%
Bed Bath & Beyond........370........297............73......25%
GAP..............................313.........398...........(85).....-21%
Nordstrom...................290.........240............50......21%
Limited Brands.............276........244.............32......13%
Best Buy.......................259........403..........(144)....-36%
Ross Stores...................242........210.............32......15%
Staples.........................237........212..............25......12%
Dollar General..............231........225................6.......3%
Dollar Tree...................152........125..............27......22%
Darden Restaurants......147.......159.............(12)......-8%
Tiffany.........................131........102...............29......28%
Family Dollar Stores....125........112...............13.......12%
Sears Holding.............(238).......(53)..........(185)...-349%
Total 23 Retail.........16,414...15,677...........737........5%
Other Sectors
Carnival....................1,342.....1,313.............29........2%
Deere........................1,079........922..........157......17%
DiscoverFinclSvc(6).1,047........432...........615.....142%
Medtronic.................1,022....1,040............(18).....-2%
Nike.............................852.......755............97.......13%
Mosaic.........................730.......405...........325......80%
FedEx..........................724.......603...........121......20%
General Mills................554.......670..........(116)....-17%
HJ Heinz......................306.......333............(27)......-8%
Apollo Group (7).........229.......317............(88).....-28%
Brown Forman.............179.......167.............12........7%
JM Smucker.................167.......150.............17.......11%
Campbell Soup(8)........143.......161.............(18).....-11%
Hormel Foods..............141.......134..............7.........5%
Smithfield Foods..........124.......109.............15.......14%
ConAgra Foods............123.......204............(81)....-40%
Total 16 in
...Other Sectors........8,762.....7,715.........1,047......14%
Total 54 Big Corps..35,907....33,118.......2,789.......8%
(1) Hewlett Packard 2010 PTI includes large restructuring charges.
(2) Cisco Systems 2011 PTI includes large restructuring charges.
(3) Applied Materials 2010 PTI includes restructuring and asset impairment charges.
(4) Agilent Technologies 2010 PTI excludes gain on asset sale.
(5) Walgreens 2011 PTI excludes large gain on sale of business.
(6) Discover Financial Services 2011 PTI includes a huge reduction in loan loss provision charges.
(7) Apollo Group 2010 PTI excludes intangible asset impairment charges.
(8) Campbell Soup 2011 PTI includes restructuring charges.
It's pretty clear that the Republicans in the US Congress must reverse course and move forward, in short order, on fairly evaluating and making some improvements to the American Jobs Act (AJA), including measured initiatives to wisely reduce the massive amount of both underwater mortgages and underwater education loans outstanding, and also including a much more expansive, more wisely targeted, more cost effective, and clearly job-creating US infrastructure program.
The recently announced, despicable, unanimous US Senate Republican recommendation to reduce dramatically the US Federal Corporate Income Tax Rate on large US Multinational Corps from 35% to 25%, when so many of them are paying so little in US Federal Income Tax presently, couldn't be farther from what the closely-watching, very bright Occupying Protesters want. I think the Protesters, and all of their many supporters, will show that they are very upset with the US Republicans here on their exceedingly Big Corp-favored reaction to the AJA, and will demand that Congressional Republicans start taking actions that benefit the entire country, not just that benefit the top 1%.
It is unpatriotic for Congressional Republicans to continue to govern only for the top 1%, and there is no way that the Occupying Protesters, and their 99% supporters, will permit this gross inequity to stand.
From a review of them, the clear conclusion is a significant earnings growth deceleration from the previous year’s quarter, as you can see below here:
Total Pretax Earnings Growth 1Q 2011…..20%
Total Pretax Earnings Growth 2Q 2011…..13%
Total Pretax Earnings Growth 3Q 2011……8%
And this Total Earnings Growth Deceleration was widespread, as you can see here below:
..................................Total 2011 Earnings Growth
..............................................3Q.......2Q.......1Q
.......................# of
....................Big Corps
Technology.....15.................10%.....19%.....28%
Retail..............23...................5%.......4%.....11%
Other Sectors..16.................14%.....24%.....39%
All Sectors......54...................8%.....13%.....20%
If this is what’s happening to the US largest corporations, which have been both dramatically and continually “propped up” by both US Government and Fed actions, I can just imagine how badly many of the neglected US small businesses have done on the earnings front in the most recent three quarters.
The many very astute Occupying Protesters on Wall Street and around the globe know that this significant US earnings growth deceleration is mainly "on the Republicans" in both the US House and in the US Senate, due to their irresponsible actions in both the Grand Bargain Talks Collapse as well as in the horrific Debt Ceiling Negotiations, which even resulted in the highly embarrassing US Debt Downgrade by Standard and Poors.
Below here is the Pretax Income (PTI) in the 3Q 2011 of these 54 Big US Corps.
.........................................3Q.........3Q....Increase (Decrease)
.......................................2011......2010......Amount.....%
........................................(millions of dollars)
Technology
Oracle............................2,471.....1,795.........676......38%
Hewlett Packard(1)........2,399......2,189.........210......10%
Cisco Systems(2)............1,467.....2,418........(951)....-39%
Dell................................1,091........696.........395......57%
Accenture........................935........717.........218......30%
Applied Materials(3)........669........178..........491....276%
Agilent Technologies(4)...281........100..........181.....181%
Analog Devices................275........251............24......10%
Adobe Systems................257........297..........(40)....-13%
Paychex...........................231........202...........29......14%
Marvell Technology.........197........222..........(25)....-11%
SAIC................................182........252..........(70)....-28%
Nvidia.............................178.......(169).........347....205%
NetApp...........................176........178............(2).......-1%
Micron Technology.........(78).......400........(478)..-120%
Total 15 Technology...10,731.....9,726.......1,005.....10%
Retail
Walmart......................5,805.....5,705.........100.......2%
Home Depot................2,148......1,901..........247.....13%
Lowes.........................1,329......1,335............(6)......0%
Target.........................1,109......1,081............28.......3%
Walgreens(5).................817........728............89......12%
Costco...........................772........684............88......13%
TJX................................559........496............63......13%
Kohls.............................475........410............65......16%
Autozone......................470........423............47......11%
Macy's...........................395........240...........155......65%
Bed Bath & Beyond........370........297............73......25%
GAP..............................313.........398...........(85).....-21%
Nordstrom...................290.........240............50......21%
Limited Brands.............276........244.............32......13%
Best Buy.......................259........403..........(144)....-36%
Ross Stores...................242........210.............32......15%
Staples.........................237........212..............25......12%
Dollar General..............231........225................6.......3%
Dollar Tree...................152........125..............27......22%
Darden Restaurants......147.......159.............(12)......-8%
Tiffany.........................131........102...............29......28%
Family Dollar Stores....125........112...............13.......12%
Sears Holding.............(238).......(53)..........(185)...-349%
Total 23 Retail.........16,414...15,677...........737........5%
Other Sectors
Carnival....................1,342.....1,313.............29........2%
Deere........................1,079........922..........157......17%
DiscoverFinclSvc(6).1,047........432...........615.....142%
Medtronic.................1,022....1,040............(18).....-2%
Nike.............................852.......755............97.......13%
Mosaic.........................730.......405...........325......80%
FedEx..........................724.......603...........121......20%
General Mills................554.......670..........(116)....-17%
HJ Heinz......................306.......333............(27)......-8%
Apollo Group (7).........229.......317............(88).....-28%
Brown Forman.............179.......167.............12........7%
JM Smucker.................167.......150.............17.......11%
Campbell Soup(8)........143.......161.............(18).....-11%
Hormel Foods..............141.......134..............7.........5%
Smithfield Foods..........124.......109.............15.......14%
ConAgra Foods............123.......204............(81)....-40%
Total 16 in
...Other Sectors........8,762.....7,715.........1,047......14%
Total 54 Big Corps..35,907....33,118.......2,789.......8%
(1) Hewlett Packard 2010 PTI includes large restructuring charges.
(2) Cisco Systems 2011 PTI includes large restructuring charges.
(3) Applied Materials 2010 PTI includes restructuring and asset impairment charges.
(4) Agilent Technologies 2010 PTI excludes gain on asset sale.
(5) Walgreens 2011 PTI excludes large gain on sale of business.
(6) Discover Financial Services 2011 PTI includes a huge reduction in loan loss provision charges.
(7) Apollo Group 2010 PTI excludes intangible asset impairment charges.
(8) Campbell Soup 2011 PTI includes restructuring charges.
It's pretty clear that the Republicans in the US Congress must reverse course and move forward, in short order, on fairly evaluating and making some improvements to the American Jobs Act (AJA), including measured initiatives to wisely reduce the massive amount of both underwater mortgages and underwater education loans outstanding, and also including a much more expansive, more wisely targeted, more cost effective, and clearly job-creating US infrastructure program.
The recently announced, despicable, unanimous US Senate Republican recommendation to reduce dramatically the US Federal Corporate Income Tax Rate on large US Multinational Corps from 35% to 25%, when so many of them are paying so little in US Federal Income Tax presently, couldn't be farther from what the closely-watching, very bright Occupying Protesters want. I think the Protesters, and all of their many supporters, will show that they are very upset with the US Republicans here on their exceedingly Big Corp-favored reaction to the AJA, and will demand that Congressional Republicans start taking actions that benefit the entire country, not just that benefit the top 1%.
It is unpatriotic for Congressional Republicans to continue to govern only for the top 1%, and there is no way that the Occupying Protesters, and their 99% supporters, will permit this gross inequity to stand.
Thursday, October 13, 2011
Global Income Shifting of US Big Corps in 2000s Decade
Since global income shifting by large US Multinational Corps have had such a devastating effect on US jobs and also on US Federal and State Government coffers, I think it would be wise to perform additional research in order to gather further insights on this issue, which is so critical to turning the horrible US job recession around.
I focused my research here on the large US Multinational Corps, with a substantial foreign presence, which generated Worldwide Pretax Income in excess of $2.5 bil in the most recent year through June 2011 year ends.
I analyzed the 10K SEC filings in the most recent year and also in 2000, the last year of the Clinton Administration.
I found precisely a 52 deck of cards of these US Big Corps, which provided the necessary information on global income shifting.
Amazingly, I found another Mitt Romney-like 100% Flip Flop Situation.
In 2000, these 52 large US Multinational Corps generated 61% of their Total Worldwide Pretax Income (PTI) in the US and 39% in Foreign Countries.
And in 2010, these same 52 large US Multinational Corps generated 39% of their Total Worldwide Pretax Income in the US and 61% in Foreign Countries.
Now that is what I call an absolutely devastating Flip Flop, which has wreaked havoc on the US job situation, on middle class median income, and on US Federal and State Government coffers.
I think this is the kind of research that the brave, perceptive, patriotic Occupying Protesters should use to shape what changes they think should be made to the US economy for it to function more effectively and fairly for everyone.
Below here is the detailed information of the US Pretax Income Percentage Mix in the most recent year and also 10 years earlier. Clearly, this massive Global Income Shift has been a Bush Thing.....occurring predominately all throughout the Bush/Cheney Administration, when there was a widespread laissez-faire environment for huge US Corporations.
And all of the Republicans in the US Senate and US House, as well as all the Republican Presidential Candidates, want to resurrect this "Regulation Free" Big Business Environment? Give me a break! The Occupying Protesters are not going to buy this.
..................2010.......2010....2010 ………..2000.....2000..2000
....................US..........WW.......US ……….....US.........WW......US
....................PTI.........PTI.......Mix ………....PTI........PTI......Mix
.....................(mils of $s)..............................(mils of $s).............
XOM.........7,711.....52,959.....15% ……….9,016....26,772....34%
CVX..........6,528.....32,055....20% ……….5,823....14,049....41%
MSFT........8,862.....28,071....32% ……….9,189.....11,525....80%
JPM........16,568.....24,859....67% ………..5,844......8,733....67%
WMT.......18,398.....23,538....78% ……….9,203....10,116....91%
ConPhil.....6,214.....19,750....31% ……….2,041......3,748....54%
IBM..........9,140.....19,723....46% ………..5,914......11,411....52%
Apple.......5,540.....18,540....30% ………......73.......1,092......7%
AIG........13,208.....17,767....74% ……….6,471.....10,023....65%
JNJ..........6,392.....16,947....38% ……….3,892.......6,868....57%
Intel.......13,926.....16,045....87% ……….11,162.....15,141....74%
PG............8,983.....15,189....59% ………..3,340.......4,616....72%
GE............5,078....14,208....36% ………12,900.....18,446....70%
Citi..............884.....13,184......7% ………12,497.....19,297....65%
GSachs.....7,348.....12,892....57% ………..2,845.......5,020....57%
ORCL.......6,378......11,411....56% ………..2,661.......3,971....67%
HP...........4,027.....10,974....37% ………..1,547.......4,625....33%
GOOG(1)...4,948.....10,796....46% ………....185...........185..100%
Pfizer(2).(2,477)......9,422...(26)% ………4,233.......8,724....49%
CSCO........1,102.......9,415....12% ………...2,544.......4,343....59%
Coke........2,246.......9,265....24% ………..1,497.......3,399....44%
Pepsi.......4,008.......8,232....49% ………..2,574.......3,761....68%
OXY.........3,295.......7,359....45% ………...1,511.......2,991....51%
Ford........4,361.......7,149....61% ………...9,394.......8,390...112%
MCD.........2,763......7,000....39% ………...1,281.......2,882....44%
UntdTech.2,655.......6,538....41% ………...1,511.......2,758....55%
Lilly(3).....2,936.......6,525....45% ………..2,161.......3,859....56%
MorgStan.3,550.......6,202....57% ………..6,361.......8,554....74%
BMY.........3,833.......6,071....63% ………...2,474.......5,247....47%
3M...........2,778.......5,755....48% ………..1,798.......2,974....60%
GM...........2,648.......5,737....46% ………...3,019.......7,164....42%
ABT...........(275)......5,713....(5)% ………..2,773.......3,816....73%
Amgen.....2,217.......5,317....42% ………...1,674.......1,674..100%
Apache....1,328.......5,206....26% ………......654.......1,204....54%
SLB.............638.......5,156....12% ………........48..........937......5%
Mar Oil........559.......5,122....11% ………......659..........896....74%
TXInstr....3,769.......4,551....83% ………...3,944.......4,578....86%
Corning.......975.......3,845....25% ………......692..........621..111%
CAT............778.......3,750....21% ………...1,083.......1,528....71%
MDT.........1,447.......3,723....39% ………..1,062.......1,549....69%
DuPont.......949........3,711....26% ………..1,544.......3,447....45%
Kraft........1,071.......3,642....29% ………...2,188.......3,415....64%
Colgate....1,252.......3,430....37% ………......483.......1,567....31%
Dell............550.......3,350....16% ………....2,451.......3,194....77%
Deere......2,048.......3,025....68% ………......504..........778....65%
Emerson.1,303.......2,879....45% ………....1,615.......2,178....74%
Nike........1,084.......2,844....38% ……….......471..........921....51%
HON........1,249.......2,843....44% ………...1,842.......2,398....77%
DowChem.(821)......2,802...(29)% ……….....861......2,586....33%
HAL........1,918.......2,655....72% ……….......128..........335....38%
EMC.......1,408.......2,608....54% ……….....1,562.......2,441....64%
KMB.......1,609.......2,550....63%……….....1,788.......2,436....73%
Total..208,887...532,300...39% ………172,987...283,183....61%
(1) Google early year information is for 2002.
(2) Pfizer 2000 PTI excludes large Merger-Related Costs.
(3) Eli Lilly US PTI includes Puerto Rico tax haven.
Below here are the Corporate names related to the above 52 Corporate abbreviations.
3M 3M
ABT Abbott Labs
AIG AIG
Amgen Amgen
Apache Apache
Apple Apple
BMY Bristol Myers Squibb
CAT Caterpillar
Citi Citigroup
Coke Coca Cola
Colgate Colgate Palmolive
ConPhil ConocoPhillips
Corning Corning
CSCO Cisco Systems
CVX Chevron
Deere Deere
Dell Dell
DowChem Dow Chemical
DuPont DuPont
EMC EMC
Emerson Emerson Electric
Ford Ford
GE GE
GM GM
GOOG Google
GSachs Goldman Sachs
HAL Halliburton
HON Honeywell
HP HP
IBM IBM
Intel Intel
JNJ JNJ
JPM JPMorganChase
KMB Kimberly Clark
Kraft Kraft Foods
Lilly Eli Lilly
Mar Oil Marathon Oil
MCD McDonalds
MDT Medtronicr)
MorgStan Morgan Stanley
MSFT Microsoft
Nike Nike
ORCL Oracle
OXY Occidental Petroleum
Pepsi PepsiCo
Pfizer Pfizer
PG Procter&Gamble
SLB Schlumberger
TXInstr Texas Instruments
UntdTech United Technologies
WMT Walmart
XOM Exxon Mobil
I focused my research here on the large US Multinational Corps, with a substantial foreign presence, which generated Worldwide Pretax Income in excess of $2.5 bil in the most recent year through June 2011 year ends.
I analyzed the 10K SEC filings in the most recent year and also in 2000, the last year of the Clinton Administration.
I found precisely a 52 deck of cards of these US Big Corps, which provided the necessary information on global income shifting.
Amazingly, I found another Mitt Romney-like 100% Flip Flop Situation.
In 2000, these 52 large US Multinational Corps generated 61% of their Total Worldwide Pretax Income (PTI) in the US and 39% in Foreign Countries.
And in 2010, these same 52 large US Multinational Corps generated 39% of their Total Worldwide Pretax Income in the US and 61% in Foreign Countries.
Now that is what I call an absolutely devastating Flip Flop, which has wreaked havoc on the US job situation, on middle class median income, and on US Federal and State Government coffers.
I think this is the kind of research that the brave, perceptive, patriotic Occupying Protesters should use to shape what changes they think should be made to the US economy for it to function more effectively and fairly for everyone.
Below here is the detailed information of the US Pretax Income Percentage Mix in the most recent year and also 10 years earlier. Clearly, this massive Global Income Shift has been a Bush Thing.....occurring predominately all throughout the Bush/Cheney Administration, when there was a widespread laissez-faire environment for huge US Corporations.
And all of the Republicans in the US Senate and US House, as well as all the Republican Presidential Candidates, want to resurrect this "Regulation Free" Big Business Environment? Give me a break! The Occupying Protesters are not going to buy this.
..................2010.......2010....2010 ………..2000.....2000..2000
....................US..........WW.......US ……….....US.........WW......US
....................PTI.........PTI.......Mix ………....PTI........PTI......Mix
.....................(mils of $s)..............................(mils of $s).............
XOM.........7,711.....52,959.....15% ……….9,016....26,772....34%
CVX..........6,528.....32,055....20% ……….5,823....14,049....41%
MSFT........8,862.....28,071....32% ……….9,189.....11,525....80%
JPM........16,568.....24,859....67% ………..5,844......8,733....67%
WMT.......18,398.....23,538....78% ……….9,203....10,116....91%
ConPhil.....6,214.....19,750....31% ……….2,041......3,748....54%
IBM..........9,140.....19,723....46% ………..5,914......11,411....52%
Apple.......5,540.....18,540....30% ………......73.......1,092......7%
AIG........13,208.....17,767....74% ……….6,471.....10,023....65%
JNJ..........6,392.....16,947....38% ……….3,892.......6,868....57%
Intel.......13,926.....16,045....87% ……….11,162.....15,141....74%
PG............8,983.....15,189....59% ………..3,340.......4,616....72%
GE............5,078....14,208....36% ………12,900.....18,446....70%
Citi..............884.....13,184......7% ………12,497.....19,297....65%
GSachs.....7,348.....12,892....57% ………..2,845.......5,020....57%
ORCL.......6,378......11,411....56% ………..2,661.......3,971....67%
HP...........4,027.....10,974....37% ………..1,547.......4,625....33%
GOOG(1)...4,948.....10,796....46% ………....185...........185..100%
Pfizer(2).(2,477)......9,422...(26)% ………4,233.......8,724....49%
CSCO........1,102.......9,415....12% ………...2,544.......4,343....59%
Coke........2,246.......9,265....24% ………..1,497.......3,399....44%
Pepsi.......4,008.......8,232....49% ………..2,574.......3,761....68%
OXY.........3,295.......7,359....45% ………...1,511.......2,991....51%
Ford........4,361.......7,149....61% ………...9,394.......8,390...112%
MCD.........2,763......7,000....39% ………...1,281.......2,882....44%
UntdTech.2,655.......6,538....41% ………...1,511.......2,758....55%
Lilly(3).....2,936.......6,525....45% ………..2,161.......3,859....56%
MorgStan.3,550.......6,202....57% ………..6,361.......8,554....74%
BMY.........3,833.......6,071....63% ………...2,474.......5,247....47%
3M...........2,778.......5,755....48% ………..1,798.......2,974....60%
GM...........2,648.......5,737....46% ………...3,019.......7,164....42%
ABT...........(275)......5,713....(5)% ………..2,773.......3,816....73%
Amgen.....2,217.......5,317....42% ………...1,674.......1,674..100%
Apache....1,328.......5,206....26% ………......654.......1,204....54%
SLB.............638.......5,156....12% ………........48..........937......5%
Mar Oil........559.......5,122....11% ………......659..........896....74%
TXInstr....3,769.......4,551....83% ………...3,944.......4,578....86%
Corning.......975.......3,845....25% ………......692..........621..111%
CAT............778.......3,750....21% ………...1,083.......1,528....71%
MDT.........1,447.......3,723....39% ………..1,062.......1,549....69%
DuPont.......949........3,711....26% ………..1,544.......3,447....45%
Kraft........1,071.......3,642....29% ………...2,188.......3,415....64%
Colgate....1,252.......3,430....37% ………......483.......1,567....31%
Dell............550.......3,350....16% ………....2,451.......3,194....77%
Deere......2,048.......3,025....68% ………......504..........778....65%
Emerson.1,303.......2,879....45% ………....1,615.......2,178....74%
Nike........1,084.......2,844....38% ……….......471..........921....51%
HON........1,249.......2,843....44% ………...1,842.......2,398....77%
DowChem.(821)......2,802...(29)% ……….....861......2,586....33%
HAL........1,918.......2,655....72% ……….......128..........335....38%
EMC.......1,408.......2,608....54% ……….....1,562.......2,441....64%
KMB.......1,609.......2,550....63%……….....1,788.......2,436....73%
Total..208,887...532,300...39% ………172,987...283,183....61%
(1) Google early year information is for 2002.
(2) Pfizer 2000 PTI excludes large Merger-Related Costs.
(3) Eli Lilly US PTI includes Puerto Rico tax haven.
Below here are the Corporate names related to the above 52 Corporate abbreviations.
3M 3M
ABT Abbott Labs
AIG AIG
Amgen Amgen
Apache Apache
Apple Apple
BMY Bristol Myers Squibb
CAT Caterpillar
Citi Citigroup
Coke Coca Cola
Colgate Colgate Palmolive
ConPhil ConocoPhillips
Corning Corning
CSCO Cisco Systems
CVX Chevron
Deere Deere
Dell Dell
DowChem Dow Chemical
DuPont DuPont
EMC EMC
Emerson Emerson Electric
Ford Ford
GE GE
GM GM
GOOG Google
GSachs Goldman Sachs
HAL Halliburton
HON Honeywell
HP HP
IBM IBM
Intel Intel
JNJ JNJ
JPM JPMorganChase
KMB Kimberly Clark
Kraft Kraft Foods
Lilly Eli Lilly
Mar Oil Marathon Oil
MCD McDonalds
MDT Medtronicr)
MorgStan Morgan Stanley
MSFT Microsoft
Nike Nike
ORCL Oracle
OXY Occidental Petroleum
Pepsi PepsiCo
Pfizer Pfizer
PG Procter&Gamble
SLB Schlumberger
TXInstr Texas Instruments
UntdTech United Technologies
WMT Walmart
XOM Exxon Mobil
Monday, October 10, 2011
US Big Corps: Global Income Shifting Patriotic Scores
US Multinational Corps receive a lift in their worldwide after-tax earnings when they shift their income from the higher income taxed US to lower income taxed foreign jurisdictions. A clear problem with this income shift by US Multinational Corps is that the severely-depressed US Government financial coffers suffer, as do US State Government coffers.
In my most recent post, I showed the 104 US Corps with Worldwide Pretax Income (PTI) between $0.5 bil to $1.0 bil each in the most recent year, with at least some international presence, and which disclosed financial information needed for me to compute both the US Pretax Income Mix (as a % of Worldwide Pretax Income) and the Average of US Revenue Mix and US Asset Mix (both as a % of the Worldwide Amounts).
In this post, I am showing similar information related to the 152 US Corps with Worldwide Pretax Income above $1 bil each in the most recent year. These 152 US Corps are stratified below by categories based on Worldwide Pretax Income size.
.................................................................................Patriotic
..................................................................................Spread
................................................................................US PTI vs
...........................................US........US.........US....US Average of
..........................................PTI.......Rev......Asset.....US Revs &
..........................................Mix.......Mix.......Mix......US Assets
PTI Above $10 bil (18 Corps)
Microsoft...........................32%......54%.......86%........(39)%
Apple.................................30%......44%.......86%........(35)%
Citigroup..............................7%......41%.......ND.........(34)%
ConocoPhillips...................31%......66%.......47%........(25)%
Exxon Mobil......................15%......31%.......43%........(23)%
Google...............................46%......48%.......86%........(21)%
Chevron............................20%......42%.......35%........(18)%
JNJ....................................38%......48%.......51%........(12)%
HP.....................................37%......35%.......55%.........(9)%
JPMorgan Chase................67%......78%.......71%.........(8)%
GE.....................................36%......47%.......27%.........(1)%
Goldman Sachs..................57%......55%.......ND............2%
Oracle...............................56%......43%.......62%...........4%
IBM..................................46%......36%.......49%...........4%
Walmart...........................78%......74%.......68%...........7%
AIG..................................74%......53%.......67%..........15%
Procter&Gamble..............59%......37%.......51%..........15%
Intel................................87%......15%.......71%..........44%
PTI $5 to $10 bil (23 Corps)
Pfizer.............................(26)%...43%.......57%........(76)%
Marathon Oil...................11%......89%.......55%........(61)%
Cisco Sytems...................16%.....50%.......84%........(51)%
Abbott Labs....................(5)%....43%.......45%........(49)%
Occidental Petroleum.....44%......64%.......78%........(27)%
Amgen...........................42%......77%.......59%........(26)%
Coca Cola.......................24%......30%.......56%........(19)%
Apache..........................26%......35%.......50%........(17)%
Freeport-McMoran........15%......28%.......37%........(17)%
Morgan Stanley.............57%......69%.......72%........(13)%
Eli Lilly.........................45%(1)..56%.......58%........(12)%
Schlumberger................12%......24%.......ND..........(12)%
United Technologies......41%......53%.......48%........(10)%
PepsiCo.........................49%......53%.......59%.........(7)%
GM................................46%......54%.......47%.........(4)%
Bristol Myers Squibb.....63%......65%.......67%.........(3)%
Home Depot..................92%......89%.......ND.............3%
McDonalds....................39%......34%.......39%...........3%
3M................................48%......35%.......53%...........4%
Ford..............................61%......49%.......52%..........10%
American Express.........82%......71%.......ND............11%
United Parcel Service...87%......74%.......77%..........11%
Disney..........................92%......74%.......87%..........11%
PTI $3 to $5 bil (26 Corps)
Dell..............................16%.....52%.......73%........(46)%
Medtronic...................39%......57%.......77%........(28)%
DuPont........................26%......36%.......69%........(27)%
Caterpillar...................21%......32%.......51%........(21)%
Bunge, Ltd.....................1%......23%.......17%........(18)%
Prudential Financial....54%......69%.......76%........(18)%
Kraft Foods.................29%......43%.......45%........(14)%
BlackRock...................74%......67%.......99%.........(9)%
Corning.......................25%......26%.......35%.........(5)%
Qualcomm..................43%........5%.......91%.........(5)%
ACE, Ltd.....................58%......61%.......ND...........(3)%
Newmont Mining........18%......22%.......20%.........(2)%
Bank of NY Mellon......64%......64%.......66%.........(1)%
DirecTV.....................80%......86%.......75%...........0%
Gilead Sciences..........65%......53%.......76%...........0%
MetLife......................81%......85%.......75%...........1%
Travelers.................100%.....94%......100%..........3%
AFLAC......................22%......24%.......13%...........4%
Time Warner.............91%......71%.......99%...........6%
Colgate Palmolive.....37%......23%.......33%...........8%
Deere........................68%......56%.......54%..........13%
Devon Energy...........82%......73%.......63%..........14%
Boeing......................96%......59%......100%.........16%
Visa..........................86%......58%.......79%..........17%
NewsCorp.................78%......54%.......65%..........19%
Texas Instruments....83%......11%.......46%..........54%
PTI $2 to $3 bil (22 Corps)
Dow Chemical..........(29)%....33%.......48%........(69)%
State Street Corp.......36%......58%.......71%........(29)%
Ebay.........................40%......46%.......89%........(27)%
Honeywell................44%......59%.......75%........(23)%
Natl Oilwell Varco....30%......34%.......57%........(15)%
Accenture................18%......36%.......30%........(15)%
Franklin Resources..56%......67%.......76%........(15)%
Duke Energy............78%......92%.......94%........(14)%
Nike.........................38%......43%.......61%........(14)%
Costco.....................69%......76%.......77%.........(7)%
Emerson Electric.....45%......43%.......56%..........(4)%
FedEx......................79%......70%......90%..........(1)%
EMC.........................54%......54%.......ND............0%
Viacom....................82%......72%.......91%...........1%
Alcon......................52%......43%.......53%...........4%
Best Buy..................78%......74%.......72%...........6%
General Mills...........88%......81%.......82%...........7%
TJX.........................84%......77%.......69%..........10%
Illinois Tool Works..56%......42%.......49%..........11%
Kimberly Clark........63%......53%.......51%..........11%
Halliburton.............72%......46%.......59%..........20%
Mastercard.............80%......42%.......ND............38%
PTI $1 to $2 bil (63 Corps)
AES......................(129)%.....16%.......25%.......(149)%
Tyco International.(19)%.....49%.......69%........(77)%
Ingersoll-Rand........(4)%.....62%.......78%........(74)%
Estee Lauder..........(16)%.....38%.......59%........(64)%
Broadcom................21%......ND........72%........(51)%
AON..........................2%......40%.......65%........(50)%
Noble Energy...........23%.....65%.......68%........(44)%
Western Union.........13%.....29%.......81%........(42)%
Celgene....................23%.....60%.......67%........(41)%
Eaton.......................11%......56%.......44%........(39)%
Forest Labs.............25%......98%.......28%........(38)%
Anadarko Petrol......52%......81%.......90%........(33)%
Cummins.................15%......36%.......60%........(33)%
Stryker....................33%......65%.......64%........(32)%
Baxter.....................10%......41%.......39%........(30)%
TE Connectivity........2%......27%.......29%........(26)%
Omnicom Group......42%......59%.......69%........(22)%
McKesson...............71%......91%.......91%........(20)%
Yum Brands............22%......36%.......42%........(18)%
St Jude Medical.......46%......51%.......73%........(16)%
Covidien.................52%......55%.......76%........(13)%
Cardinal Health.......86%......98%.......92%........(10)%
Murphy Oil..............15%......18%.......31%.........(9)%
Amazon.com...........59%......55%.......81%.........(9)%
PPL.........................79%......91%.......84%.........(9)%
Peabody Energy......48%......62%.......50%.........(8)%
Air Prod&Chems......33%......46%.......35%.........(7)%
Cliff's Nat Resour......46%......42%.......63%.........(6)%
PPG Industries.........39%......42%.......47%.........(6)%
Praxair.....................33%......39%.......36%.........(5)%
Parker Hannifin........48%......58%.......48%.........(5)%
Baker Hughes...........42%......42%.......48%.........(3)%
CBS...........................88%......85%.......96%.........(3)%
L-3 Communications.85%......88%.......ND..........(3)%
Johnson Controls......38%......38%.......38%...........0%
Lubrizol....................47%......33%.......61%...........0%
Coach.......................76%......70%.......79%...........1%
Waste Management...93%......94%.......89%...........1%
Ally Financial...........49%......67%.......26%...........2%
Yahoo......................81%......67%.......89%...........3%
Becton Dickinson......54%......45%.......55%...........4%
ADP..........................87%......80%.......86%...........4%
CA............................62%......67%.......48%...........4%
GAP..........................85%......80%.......80%...........5%
McGraw-Hill.............79%......71%.......77%...........6%
Staples......................65%......67%.......51%...........6%
Thermo Fisher Sci....68%......67%.......56%...........6%
HJ Heinz...................41%......37%.......33%...........6%
Precision Castparts...89%......83%.......83%...........6%
Kellogg.....................73%......63%.......64%..........10%
Valero Energy...........96%......82%.......86%..........12%
Starbucks..................91%......78%.......77%..........13%
Biogen IDEC..............69%......50%.......60%..........14%
Applied Materials......57%......12%.......72%..........15%
Campbell Soup...........81%......69%.......61%..........16%
TRW Automotive.......37%......22%.......18%..........18%
Monsanto..................83%......57%.......70%..........19%
Spectra Energy..........60%......34%.......42%..........22%
Micron Technology...72%......17%.......59%..........34%
KLA Tencor...............68%......19%.......47%..........35%
Diamond Offshore......57%......19%.......15%..........40%
Apollo Group...........123%......94%.......50%..........51%
Sandisk......................87%......17%.......15%..........72%
Total Corps = 152
ND means Not Disclosed
(1) Eli Lilly's above US PTI % Mix is overstated since its significant profits in its Puerto Rico tax haven are also included in its US PTI % Mix.
Clearly, the massive amount of income shifting by US Big Multinational Corps from the higher income taxed US to much lower taxed foreign jurisdictions has wreaked absolute havoc on the US Government coffers, and also on the US middle class and on US jobs.
The Occupying Protesters are spot on in focusing on unbridled, excessive corporate greed, while those in the US Government either facilitate it or look the other way, as one of the main causes of the horrible job depression and of the other numerous unfair economic conditions faced by so many in the US middle and lower classes and by so many US small businesses.
Wise Job-Creating US Tax Reform can go a long way to correct this horrible global income shifting by US Big Multinational Corps. The key parts of Wise Tax Reform should be a dramatic reduction in the US Federal Income Tax Rates on lower amounts of business income, coupled with the institution of progressive minimum tax rates on the Worldwide Pretax Income of US Multinational Corps, which clearly overdose on shifting income, and the related US jobs, overseas.
In my most recent post, I showed the 104 US Corps with Worldwide Pretax Income (PTI) between $0.5 bil to $1.0 bil each in the most recent year, with at least some international presence, and which disclosed financial information needed for me to compute both the US Pretax Income Mix (as a % of Worldwide Pretax Income) and the Average of US Revenue Mix and US Asset Mix (both as a % of the Worldwide Amounts).
In this post, I am showing similar information related to the 152 US Corps with Worldwide Pretax Income above $1 bil each in the most recent year. These 152 US Corps are stratified below by categories based on Worldwide Pretax Income size.
.................................................................................Patriotic
..................................................................................Spread
................................................................................US PTI vs
...........................................US........US.........US....US Average of
..........................................PTI.......Rev......Asset.....US Revs &
..........................................Mix.......Mix.......Mix......US Assets
PTI Above $10 bil (18 Corps)
Microsoft...........................32%......54%.......86%........(39)%
Apple.................................30%......44%.......86%........(35)%
Citigroup..............................7%......41%.......ND.........(34)%
ConocoPhillips...................31%......66%.......47%........(25)%
Exxon Mobil......................15%......31%.......43%........(23)%
Google...............................46%......48%.......86%........(21)%
Chevron............................20%......42%.......35%........(18)%
JNJ....................................38%......48%.......51%........(12)%
HP.....................................37%......35%.......55%.........(9)%
JPMorgan Chase................67%......78%.......71%.........(8)%
GE.....................................36%......47%.......27%.........(1)%
Goldman Sachs..................57%......55%.......ND............2%
Oracle...............................56%......43%.......62%...........4%
IBM..................................46%......36%.......49%...........4%
Walmart...........................78%......74%.......68%...........7%
AIG..................................74%......53%.......67%..........15%
Procter&Gamble..............59%......37%.......51%..........15%
Intel................................87%......15%.......71%..........44%
PTI $5 to $10 bil (23 Corps)
Pfizer.............................(26)%...43%.......57%........(76)%
Marathon Oil...................11%......89%.......55%........(61)%
Cisco Sytems...................16%.....50%.......84%........(51)%
Abbott Labs....................(5)%....43%.......45%........(49)%
Occidental Petroleum.....44%......64%.......78%........(27)%
Amgen...........................42%......77%.......59%........(26)%
Coca Cola.......................24%......30%.......56%........(19)%
Apache..........................26%......35%.......50%........(17)%
Freeport-McMoran........15%......28%.......37%........(17)%
Morgan Stanley.............57%......69%.......72%........(13)%
Eli Lilly.........................45%(1)..56%.......58%........(12)%
Schlumberger................12%......24%.......ND..........(12)%
United Technologies......41%......53%.......48%........(10)%
PepsiCo.........................49%......53%.......59%.........(7)%
GM................................46%......54%.......47%.........(4)%
Bristol Myers Squibb.....63%......65%.......67%.........(3)%
Home Depot..................92%......89%.......ND.............3%
McDonalds....................39%......34%.......39%...........3%
3M................................48%......35%.......53%...........4%
Ford..............................61%......49%.......52%..........10%
American Express.........82%......71%.......ND............11%
United Parcel Service...87%......74%.......77%..........11%
Disney..........................92%......74%.......87%..........11%
PTI $3 to $5 bil (26 Corps)
Dell..............................16%.....52%.......73%........(46)%
Medtronic...................39%......57%.......77%........(28)%
DuPont........................26%......36%.......69%........(27)%
Caterpillar...................21%......32%.......51%........(21)%
Bunge, Ltd.....................1%......23%.......17%........(18)%
Prudential Financial....54%......69%.......76%........(18)%
Kraft Foods.................29%......43%.......45%........(14)%
BlackRock...................74%......67%.......99%.........(9)%
Corning.......................25%......26%.......35%.........(5)%
Qualcomm..................43%........5%.......91%.........(5)%
ACE, Ltd.....................58%......61%.......ND...........(3)%
Newmont Mining........18%......22%.......20%.........(2)%
Bank of NY Mellon......64%......64%.......66%.........(1)%
DirecTV.....................80%......86%.......75%...........0%
Gilead Sciences..........65%......53%.......76%...........0%
MetLife......................81%......85%.......75%...........1%
Travelers.................100%.....94%......100%..........3%
AFLAC......................22%......24%.......13%...........4%
Time Warner.............91%......71%.......99%...........6%
Colgate Palmolive.....37%......23%.......33%...........8%
Deere........................68%......56%.......54%..........13%
Devon Energy...........82%......73%.......63%..........14%
Boeing......................96%......59%......100%.........16%
Visa..........................86%......58%.......79%..........17%
NewsCorp.................78%......54%.......65%..........19%
Texas Instruments....83%......11%.......46%..........54%
PTI $2 to $3 bil (22 Corps)
Dow Chemical..........(29)%....33%.......48%........(69)%
State Street Corp.......36%......58%.......71%........(29)%
Ebay.........................40%......46%.......89%........(27)%
Honeywell................44%......59%.......75%........(23)%
Natl Oilwell Varco....30%......34%.......57%........(15)%
Accenture................18%......36%.......30%........(15)%
Franklin Resources..56%......67%.......76%........(15)%
Duke Energy............78%......92%.......94%........(14)%
Nike.........................38%......43%.......61%........(14)%
Costco.....................69%......76%.......77%.........(7)%
Emerson Electric.....45%......43%.......56%..........(4)%
FedEx......................79%......70%......90%..........(1)%
EMC.........................54%......54%.......ND............0%
Viacom....................82%......72%.......91%...........1%
Alcon......................52%......43%.......53%...........4%
Best Buy..................78%......74%.......72%...........6%
General Mills...........88%......81%.......82%...........7%
TJX.........................84%......77%.......69%..........10%
Illinois Tool Works..56%......42%.......49%..........11%
Kimberly Clark........63%......53%.......51%..........11%
Halliburton.............72%......46%.......59%..........20%
Mastercard.............80%......42%.......ND............38%
PTI $1 to $2 bil (63 Corps)
AES......................(129)%.....16%.......25%.......(149)%
Tyco International.(19)%.....49%.......69%........(77)%
Ingersoll-Rand........(4)%.....62%.......78%........(74)%
Estee Lauder..........(16)%.....38%.......59%........(64)%
Broadcom................21%......ND........72%........(51)%
AON..........................2%......40%.......65%........(50)%
Noble Energy...........23%.....65%.......68%........(44)%
Western Union.........13%.....29%.......81%........(42)%
Celgene....................23%.....60%.......67%........(41)%
Eaton.......................11%......56%.......44%........(39)%
Forest Labs.............25%......98%.......28%........(38)%
Anadarko Petrol......52%......81%.......90%........(33)%
Cummins.................15%......36%.......60%........(33)%
Stryker....................33%......65%.......64%........(32)%
Baxter.....................10%......41%.......39%........(30)%
TE Connectivity........2%......27%.......29%........(26)%
Omnicom Group......42%......59%.......69%........(22)%
McKesson...............71%......91%.......91%........(20)%
Yum Brands............22%......36%.......42%........(18)%
St Jude Medical.......46%......51%.......73%........(16)%
Covidien.................52%......55%.......76%........(13)%
Cardinal Health.......86%......98%.......92%........(10)%
Murphy Oil..............15%......18%.......31%.........(9)%
Amazon.com...........59%......55%.......81%.........(9)%
PPL.........................79%......91%.......84%.........(9)%
Peabody Energy......48%......62%.......50%.........(8)%
Air Prod&Chems......33%......46%.......35%.........(7)%
Cliff's Nat Resour......46%......42%.......63%.........(6)%
PPG Industries.........39%......42%.......47%.........(6)%
Praxair.....................33%......39%.......36%.........(5)%
Parker Hannifin........48%......58%.......48%.........(5)%
Baker Hughes...........42%......42%.......48%.........(3)%
CBS...........................88%......85%.......96%.........(3)%
L-3 Communications.85%......88%.......ND..........(3)%
Johnson Controls......38%......38%.......38%...........0%
Lubrizol....................47%......33%.......61%...........0%
Coach.......................76%......70%.......79%...........1%
Waste Management...93%......94%.......89%...........1%
Ally Financial...........49%......67%.......26%...........2%
Yahoo......................81%......67%.......89%...........3%
Becton Dickinson......54%......45%.......55%...........4%
ADP..........................87%......80%.......86%...........4%
CA............................62%......67%.......48%...........4%
GAP..........................85%......80%.......80%...........5%
McGraw-Hill.............79%......71%.......77%...........6%
Staples......................65%......67%.......51%...........6%
Thermo Fisher Sci....68%......67%.......56%...........6%
HJ Heinz...................41%......37%.......33%...........6%
Precision Castparts...89%......83%.......83%...........6%
Kellogg.....................73%......63%.......64%..........10%
Valero Energy...........96%......82%.......86%..........12%
Starbucks..................91%......78%.......77%..........13%
Biogen IDEC..............69%......50%.......60%..........14%
Applied Materials......57%......12%.......72%..........15%
Campbell Soup...........81%......69%.......61%..........16%
TRW Automotive.......37%......22%.......18%..........18%
Monsanto..................83%......57%.......70%..........19%
Spectra Energy..........60%......34%.......42%..........22%
Micron Technology...72%......17%.......59%..........34%
KLA Tencor...............68%......19%.......47%..........35%
Diamond Offshore......57%......19%.......15%..........40%
Apollo Group...........123%......94%.......50%..........51%
Sandisk......................87%......17%.......15%..........72%
Total Corps = 152
ND means Not Disclosed
(1) Eli Lilly's above US PTI % Mix is overstated since its significant profits in its Puerto Rico tax haven are also included in its US PTI % Mix.
Clearly, the massive amount of income shifting by US Big Multinational Corps from the higher income taxed US to much lower taxed foreign jurisdictions has wreaked absolute havoc on the US Government coffers, and also on the US middle class and on US jobs.
The Occupying Protesters are spot on in focusing on unbridled, excessive corporate greed, while those in the US Government either facilitate it or look the other way, as one of the main causes of the horrible job depression and of the other numerous unfair economic conditions faced by so many in the US middle and lower classes and by so many US small businesses.
Wise Job-Creating US Tax Reform can go a long way to correct this horrible global income shifting by US Big Multinational Corps. The key parts of Wise Tax Reform should be a dramatic reduction in the US Federal Income Tax Rates on lower amounts of business income, coupled with the institution of progressive minimum tax rates on the Worldwide Pretax Income of US Multinational Corps, which clearly overdose on shifting income, and the related US jobs, overseas.
Friday, October 7, 2011
US 6th Biggest Corps: Tax Loophole Perspectives
In my most recent five posts, I summarized key financial information related to the 248 largest US Corps, with Worldwide Pretax Income exceeding $1 bil each in the most recent year through July 2011. The bulk of these had December 2010 year ends.
In this post, I will summarize similar key financial information related to the 192 US Corps, with Worldwide Pretax Income(PTI) between $0.5 bil and $1.0 bil each in the most recent year through July 2011. Included in these 192 Corps are 14 Utility Corps and 9 Partnerships or REITs.
These 192 larger US Corps generated Total Worldwide Pretax Income of $136.5 bil in the most recent year, and a good estimate of their total US Federal Income Tax Paid was $16.1 bil, thus the estimated total effective US Federal Income Tax Paid Rate was only 11.8%. Excluding these Utilities, Partnerships, and REITs, the estimated total effective US Federal Income Tax Paid Rate was 13.6%.
This US Federal Income Tax paid is the amount disclosed in their income tax footnotes as the Current Federal Income Tax Expense Paid or Payable related to the current year, and thus should be pretty close to the actual US Federal Income Tax paid in the most recent year.
Here is the detailed information for these 192 larger US Corps:
..........................................................................US........Effective
.......................................................................Current........US
.......................................................................Federal.... Federal
......................................................................Income......Income
.......................................................World.........Tax...........Tax
........................................................Wide.........Paid..........Rate
.........................................................PTI........(Benefit)......Paid
........................................................(mils of dollars)
Multinational Corps
Northern Trust................................990...........220........22.2%
Computer Sciences..........................968............19...........2.0%
Avon Products................................945...........(21)........(2.2)%
Adobe Systems...............................943...........260.........27.6%
Discovery Communications............935...........184.........19.7%
Dover.............................................925............34...........3.7%
Noble Corp.....................................917............81...........8.8%
Marvell Technology.......................910..............1...........0.1%
Analog Devices..............................902...........117.........13.0%
Cognizant Technologies(1).............879...........110.........12.5%
Avnet............................................871............64...........7.3%
Altera............................................868............30...........3.5%
Reinsurance Corp..........................864..........(218).....(25.2)%
Zimmer Holdings...........................860...........235.........27.3%
Las Vegas Sands.............................856...........(31)........(3.6)%
Arch Capital Group Ltd..................850............10...........1.2%
Mattel............................................847............14...........1.7%
Invesco Ltd...................................834............45...........5.4%
Brown Forman...............................829...........142.........17.1%
Newfield Exploration.....................829.............(1)........(0.1)%
Polo Ralph Lauren..........................825...........126.........15.3%
Intl Paper.......................................822..........(249).....(30.3)%
Activision Blizzard(2).....................818...........314.........38.4%
ITT.................................................818...........152.........18.6%
Xerox.............................................815...........153.........18.8%
Molson Coors Brewing....................809..............8...........1.0%
Goodrich........................................805............67...........8.3%
Lam Research.................................801............55...........6.9%
NetApp..........................................794...........113.........14.2%
Western Digital..............................780............21...........2.7%
Juniper Networks..........................778.............(8)........(1.0)%
Xilinx............................................771............14...........1.8%
Marsh & McLennan........................769...........(90)......(11.7)%
CIT Group(3).................................768.............(9)........(1.2)%
First Solar......................................762............93.........12.2%
VF Corp.........................................750...........188.........25.1%
Ecolab(1).......................................748...........174.........23.3%
Coca Cola Enterprises....................746..............8...........1.1%
Priceline........................................746..............5...........0.7%
Cameron Intl.................................733...........103.........14.1%
Symantec......................................729............17...........2.3%
CR Bard.........................................718...........168.........23.4%
Moodys.........................................714...........107.........15.0%
Agilent Technologies.....................692...........(40)........(5.8)%
NYSE Euronext.............................686............18...........2.6%
XL Captal Group(1).......................685............40...........5.8%
Joy Global....................................679............33...........4.9%
Arrow Electronics........................679............88.........13.0%
Sherwin Williams.........................678...........127.........18.7%
Motorola Solutions......................677..............7...........1.0%
Amphenol(1)...............................664............78.........11.7%
Paccar.........................................660............25...........3.8%
Ensco Intl(1)................................645............10...........1.6%
Assured Guaranty Ltd(4).............636...........(25)........(3.9)%
Eastman Chemical.......................636...........115.........18.1%
Mead Johnson Nutrition.............634............38...........6.0%
Expedia......................................621...........107.........17.2%
GameStop...................................621...........133.........21.4%
Flextronics(4)............................616............23...........3.7%
Crown Holdings(5).....................614..............0...........0.0%
Intercontinental Exchange(1).....610...........145.........23.8%
Ball Corp....................................606............49...........8.1%
NII Holdings..............................598..............0...........0.0%
Everest re Group Ltd..................591...........(66)......(11.2)%
Fortune Brands..........................588...........(61)......(10.4)%
Whirlpool...................................586..........(101).....(17.2)%
Seagate Technology...................579.............(6)........(1.0)%
Garmin Ltd................................577...........(47).......(8.1)%
Expeditors Intl Washington........564............77.........13.7%
Check Point Software.................564..............7...........1.2%
Wyndham WW...........................563............55...........9.8%
Fluor.........................................560............22...........3.9%
Constellation Brands..................551..........(113).....(20.5)%
Alcoa.........................................548............33...........6.0%
Royal Caribbean........................547..............0...........0.0%
Tiffany.......................................547...........150.........27.4%
Rockwell Automation................544............10...........1.8%
Sigma Aldrich............................544...........111.........20.4%
Energizer Holdings.....................543............67.........12.3%
Allergan(2)................................540...........288.........53.3%
FMC Technologies.....................538............21...........3.9%
Celanese(1)................................538............62.........11.5%
Pitney Bowes..............................535...........170........31.8%
Varian Medical Systems.............533............69.........12.9%
BMC Software.............................531...........(14)........(2.6)%
Cooper Industries......................530............29...........5.5%
Flowserve..................................530............13...........2.5%
Nasdaq OMX Group....................526...........116.........22.1%
Hasbro.......................................508............35...........6.9%
Henry Schein.............................502...........109.........21.7%
Total 90 Multinational Corps.63,385........4,832..........7.6%
Predominantly Domestic Corps
Erie Indemnity..........................999.............(6)........(0.6)%
Southwestern Energy.................995............10...........1.0%
Nordstrom.................................991...........324.........32.7%
Dollar General............................985...........273.........27.7%
BB&T..........................................969...........161.........16.6%
Intuit.........................................966...........268.........27.7%
Fifth Third Bancorp....................940............(5)........(0.5)%
EOG Resources(6)......................933............17...........1.8%
Qwest Communications(7).........925...........(14)........(1.5)%
Lab Corp America......................916...........270.........29.5%
Cimarex Energy.........................914............43...........4.7%
Assurant(2)...............................912...........331.........36.3%
TD Ameritrade..........................912...........169.........18.5%
Ross Stores...............................897...........330.........36.8%
Hudson City Bancorp................892...........335.........37.6%
SAIC.........................................883...........259.........29.3%
Harris Corp...............................881...........229.........26.0%
Safeway.....................................881...........180.........20.4%
Republic Services......................877..........254.........29.0%
WW Grainger.............................854...........283.........33.1%
Gannett.....................................846...........135.........16.0%
Principal Financial....................841............74...........8.8%
NY Community Bank.................837...........221.........26.4%
Dr Pepper Snapple.....................821...........192.........23.4%
Hershey....................................809...........283.........35.0%
Rockwell Collins........................802...........146.........18.2%
Fiserv.......................................793...........224.........28.2%
Key Corp...................................793...........127.........16.0%
Paychex....................................792...........234.........29.5%
Pioneer Natural Resources........788..............0...........0.0%
Charles Schwab.........................779...........326.........41.8%
Torchmark Insurance(4)...........779...........447.........57.4%
Genuine Parts............................762...........222.........29.1%
Smithfield Foods........................757............58...........7.7%
OneOK.......................................755............59...........7.8%
Southwest Airlines.....................745...........198.........26.6%
Davita........................................744...........154.........20.7%
Scripps Networks.......................740...........194.........26.2%
Williams Cos(8)..........................735............81.........11.0%
Linear Technology.....................724...........112.........15.5%
Ultra Petroleum(4).....................723............22...........3.0%
JM Smucker...............................717...........271.........37.8%
American Financial Group.........689...........214.........31.1%
OReilly Automotive...................689...........146.........21.2%
CF Industries.............................688...........142.........20.6%
Coventry Health........................687...........350.........50.9%
H&R Block.................................677...........188.........27.8%
EXCO Resources........................674..............1...........0.1%
Darden Restaurants...................648...........122.........18.8%
Dollar Tree................................630...........216.........34.3%
Hormel Foods............................625...........170.........27.2%
CH Robinson..............................624...........196.........31.4%
Cephalon...................................619...........218.........35.2%
Fidelity National Info Svcs........616...........210.........34.1%
ITT Educational........................614...........217.........35.3%
Carmax.....................................613...........185.........30.2%
Delta Air Lines..........................608.............(7)........(1.2)%
WR Berkley...............................603............79.........13.1%
Cablevision Systems..................591.............(3)........(0.5)%
KBR...........................................586............56...........9.6%
Sunoco......................................586..........(105)......(17.9)%
CHS(1).......................................584..............8...........1.4%
JCPenney(9)..............................581............92.........15.8%
ING Life Insurance&Annuity.....578............73.........12.6%
Walter Energy...........................578............77.........13.3%
Intuitive Surgical......................572...........190.........33.2%
Family Dollar Stores..................564...........174.........30.9%
Clorox.......................................563...........139.........24.7%
Fidelity National Fincl(1)...........562............74.........13.2%
Advance Auto Parts...................557...........152.........27.3%
American Tower........................556..............0...........0.0%
Marriott.....................................551...........117.........21.2%
Whiting Petroleum.....................541..............1...........0.2%
Washington Post........................523...........136.........26.0%
URS...........................................514...........120.........23.3%
Community Health Systems.......508............52..........10.2%
Windstream...............................505............71.........14.1%
US Airways................................502..............0...........0.0%
Cincinnati Financial...................501............94.........18.8%
Total 79 Domestic Corps.......57,511......11,656.........20.3%
Partnerships & REITs
Simon Property Group..............754.............0..........0.0%
Icahn Enterprises LP(1)............753...........(17).......(2.3)%
Vornado Realty Trust(1)...........751............25..........3.3%
Public Storage..........................689..............0..........0.0%
Apollo Global Management......635..............8..........1.3%
Energy Transfer Partners.........633..............1..........0.2%
El Paso Pipeline Partners.........608..............1..........0.2%
Chimera Investment................534..............0..........0.0%
Plains All American Pipeline....513..............0..........0.0%
Total 9 Partnerships&REITs..5,870............18..........0.3%
Utilities
Ameren(2)..............................964............13...........1.3%
DTE Energy.............................950..........(172)......(18.1)%
Sempra Energy.......................786............27...........3.4%
PacifiCorp...............................777..........(498)......(64.1)%
NRG Energy............................753...........211.........28.0%
CenterPoint Energy................705............40...........5.7%
Wisconsin Energy(1)...............704...........145.........20.6%
Constellation Energy(10)........702...........(47)........(6.7)%
Allegheny Energy....................628.............7...........1.1%
Northeast Utilities..................605..............9...........1.5%
CMS Energy.............................590...........(21)........(3.6)%
SCANA....................................534...........(47)........(8.8)%
UGI Corp.................................523............61.........11.7%
Pinnacle West Capital..............515..........(109)......(21.2)%
Total 14 Utility Corps...........9,736..........(381).......(3.9)%
Grand Total 192 Corps......136,502........16,125........11.8%
(1) US Federal Income Tax Paid also includes US State Income Tax Paid.
(2) PTI excludes large Intangible Asset Impairment Charge.
(3) Foreign Income Tax Paid includes both Current and Deferred Income Taxes.
(4) US Federal Income Tax Paid includes all Worldwide Income Tax Paid.
(5) Foreign Income Tax Paid also includes US State Income Tax Paid.
(6) PTI excludes large Oil and Gas Property Asset Impairment Charge.
(7) PTI excludes large Loss on Embedded Option in Convertible Debt Charge.
(8) PTI excludes both large Intangible Asset Impairment Charge and large Oil and Gas Property Asset Impairment Charge.
(9) US Federal Income Tax Paid also includes Foreign Income Tax Paid.
(10) PTI excludes huge Asset Impairment Charge.
Focusing now on which of these larger 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 32 of them, whose US Federal Income Tax Paid Mix (i.e. US as a % of Worldwide) is at least 10% lower than their US Pretax Income Mix:
...........................................US..................................US
.........................................Current............................Tax
...........................................Fed...............................Paid
...........................................Inc............US.................vs
...........................................Tax............PTI............Income
...........................................Mix...........Mix............Spread
Fortune Brands.................(610)%........18%.............(628)%
Garmin Ltd.......................(294)%........28%.............(322)%
Constellation Brands........(112)%........172%.............(284)%
Reinsurance Corp..............(141)%........63%.............(204)%
Intl Paper.........................(137)%.........24%.............(161)%
Las Vegas Sands...............(119)%........(12)%............(107)%
BMC Software.....................(52)%.........55%.............(107)%
Pioneer Natural Resources.....0%.........99%..............(99)%
American Tower....................0%.........96%..............(96)%
Newfield Exploration..........(2)%.........79%..............(81)%
Molson Coors Brewing.........17%.........96%..............(79)%
EOG Resources.....................10%.........81%..............(71)%
Juniper Networks..............(22)%.........48%..............(70)%
Fluor...................................19%..........81%..............(62)%
Agilent Technologies........(38)%.........24%..............(62)%
Whirlpool..........................(98)%........(44)%............(54)%
Seagate Technology..........(27)%.........17%..............(45)%
Computer Sciences.............16%..........60%..............(44)%
Motorola Solutions...............4%..........39%..............(35)%
Joy Global..........................26%..........57%..............(31)%
Dover.................................24%..........51%..............(26)%
Flowserve...........................12%..........38%..............(26)%
Wyndham WW....................56%..........79%..............(23)%
Western Digital...................64%..........85%..............(21)%
Fidelity Natl Info Svcs........89%........109%.............(20)%
Marsh & McLennan..........(57)%........(38)%............(18)%
Symantec..........................20%..........37%..............(17)%
Priceline.............................3%...........18%..............(15)%
Ball Corp...........................38%...........53%..............(14)%
Paccar..............................17%............28%..............(11)%
Williams Cos.....................67%...........76%..............(10)%
Sempra Energy.................47%...........57%..............(10)%
US Multinational Corps receive a lift in their worldwide after-tax earnings when they shift their income from the higher income taxed US to lower income taxed foreign jurisdictions. A clear problem with this income shift by US Multinational Corps is that the severely-depressed US Government financial coffers suffer, as do US State Government coffers.
Below here are the 104 of the above US Corps, with at least some international presence, which disclosed financial information needed for me to compute both the US Pretax Income Mix (as a % of Worldwide Pretax Income) and the Average of US Revenue Mix and US Asset Mix (both as a % of the Worldwide Amounts).
.................................................................................Patriotic
..................................................................................Spread
................................................................................US PTI vs
...........................................US........US.........US....US Average of
..........................................PTI.......Rev......Asset.....US Revs &
..........................................Mix.......Mix.......Mix......US Assets
CIT Group.........................(52)%.....65%.......58%........(114)%
Alcoa................................(74)%.....50%.......23%........(110)%
Marsh & McLennan...........(38)%.....45%.......62%.........(92)%
Whirlpool.........................(44)%.....45%.......36%.........(84)%
Cooper Industries.................9%.....65%.......61%.........(54)%
Avon Products.................(24)%.....16%.......42%.........(53)%
Priceline.............................18%.....53%........88%........(52)%
Intl Paper...........................24%.....77%.......70%........(49)%
Fortune Brands..................18%.....67%........66%........(49)%
NYSE Euronext..................24%.....69%........67%........(44)%
Mattel................................15%.....54%........60%........(43)%
Rockwell Automation........27%.....51%........79%........(37)%
NII Holdings...................(37)%.......0%.........0%........(37)%
Las Vegas Sands..............(12)%......22%........25%........(36)%
Hasbro..............................33%......54%........84%........(36)%
Adobe Systems..................30%.....44%........87%........(35)%
NetApp..............................39%.....51%........92%........(32)%
Sempra Energy..................57%.....90%........87%........(32)%
Garmin Ltd........................28%.....61%........54%........(29)%
Marvell Technology.............3%.......4%........56%........(28)%
Motorola Solutions............39%.....58%........76%........(28)%
Symantec...........................37%.....49%........80%........(27)%
Altera.................................13%.....17%........65%........(27)%
Mead Johnson Nutrition.....17%.....32%........53%........(25)%
Xilinx..................................21%.....26%........65%........(25)%
Safeway...............................62%.....85%........87%........(23)%
Lam Research.....................20%.....12%........71%........(22)%
Williams Cos.......................76%.....97%........97%........(21)%
ITT.....................................43%.....66%........61%........(21)%
First Solar............................6%.....13%........36%........(19)%
Arrow Electronics..............46%.....44%........85%........(18)%
Ensco Intl...........................14%.....25%........39%........(18)%
Paccar................................28%.....41%........51%........(17)%
KBR....................................18%.....21%........50%........(17)%
Agilent Technologies..........24%.....32%........48%........(17)%
VF Corp.............................56%.....70%........74%........(16)%
Crown Holdings...................7%.....28%........18%........(16)%
Juniper Networks..............48%.....46%........80%........(16)%
IntercontinentalExchange.56%.....53%........89%........(15)%
Avnet................................31%.....38%........55%........(15)%
Cognizant Technologies.....25%.....78%.........2%........(15)%
Energizer Holdings............42%.....52%........61%........(15)%
Expedia.............................61%.....62%........90%........(15)%
CR Bard.............................64%.....69%........87%........(15)%
FMC Technologies.............12%.....23%........30%........(14)%
Noble Corp.......................14%.....20%........36%........(14)%
Intuitive Surgical.............77%.....80%........98%........(12)%
Xerox...............................53%.....64%........63%........(10)%
Zimmer Holdings..............44%.....54%........ND.........(10)%
Dover...............................51%.....54%........65%.........(9)%
Cameron Intl....................50%.....53%........64%.........(9)%
Varian Medical Systems....53%.....41%........80%.........(8)%
Pitney Bowes....................73%.....83%........75%.........(6)%
Flowserve.........................38%.....33%........54%.........(5)%
Ball Corp...........................53%.....69%........47%.........(5)%
Northern Trust.................67%.....73%........71%.........(5)%
Newfield Exploration........79%.....76%........91%.........(4)%
Seagate Technology..........17%.....28%........15%.........(4)%
EOG Resources..................81%.....84%........84%.........(3)%
Discovery Commun..........61%.....66%........61%.........(3)%
Clorox..............................79%.....79%........85%.........(3)%
Expeditors Intl Wash........35%.....24%........50%.........(2)%
BMC Software...................55%.....51%........61%.........(2)%
H&R Block........................95%.....95%........ND............0%
Dr Pepper Snapple............91%.....89%........93%...........0%
Gannett............................90%.....90%........ND............0%
Sherwin Williams..............79%.....78%........81%...........0%
Amphenol.........................34%.....35%........32%...........0%
Joy Global.........................57%.....61%........52%...........0%
Computer Sciences............60%.....63%........56%...........1%
URS...................................84%.....91%........74%...........1%
Tiffany...............................64%.....48%........76%...........2%
Reinsurance Corp..............63%.....60%........60%...........3%
Moodys.............................55%.....54%........50%...........3%
Analog Devices..................32%.....18%........40%...........3%
Pioneer Natural Resour......99%.....95%........95%...........4%
Nasdaq OMX Group...........75%.....80%........60%...........4%
Polo Ralph Lauren.............70%.....67%........61%...........6%
Wyndham WW...................79%.....74%........70%...........6%
Henry Schein.....................69%.....63%........60%...........7%
Washington Post................96%.....89%.........ND............7%
Harris Corp........................99%.....93%........88%...........9%
UGI Corp............................86%.....81%........73%...........9%
JM Smucker......................102%.....90%........95%...........9%
Smithfield Foods.................89%.....89%........68%..........10%
WW Grainger.......................94%.....82%........85%..........10%
Rockwell Collins..................91%.....71%........89%..........11%
Eastman Chemical..............80%.....48%........87%..........12%
Ecolab................................67%.....52%........55%..........13%
Sigma Aldrich.....................63%.....37%........63%..........14%
CF Industries......................98%.....85%........84%..........14%
American Tower.................96%.....81%........81%..........15%
Celanese.............................40%.....26%........22%..........16%
Goodrich............................74%.....50%........63%..........17%
Hershey............................104%.....85%........85%..........19%
Fidelity Natl Info Svcs.......109%.....83%........78%..........29%
GameStop...........................89%.....71%........46%..........31%
Lab Corp America...............96%.....ND.........64%..........32%
Cephalon..........................101%.....76%........60%..........33%
Fluor..................................81%.....37%........56%..........35%
Brown Forman...................84%.....48%........ND............36%
Western Digital...................85%.....17%........49%..........52%
Molson Coors Brewing........96%.......1%........20%..........85%
Constellation Brands.........172%.....63%........73%........104%
ND means no disclosure.
============================================
The protesters all throughout the country are spot on. The top 1%, as well as the huge US Multinational Corps, are ruling the country to the demise of everyone else....the other 99% and the small businesses.
The US House and US Senate Republican Leadership continue to parrot the talking points of the US Big Multinational Corps....."Government Regulation is killing jobs".
What an absolute joke! The protesters aren't buying it, and for the Republicans to continue to harp on that makes the protesters even more determined to fix the country's economy.
The lack of US Government Regulation, in the Bush/Cheney Presidential years, has resulted in so many huge US Multinational Corps paying very little tax. They were able to do this by shifting income and the related jobs overseas to foreign tax havens, like Ireland, Singapore, China, even Puerto Rico, and many more places.
In my research in my most recent 6 posts, I found 440 US Corps with Pretax Income above $500 mil each, which generated a massive Total Pretax Income of nearly $1.2 trillion in the most recent year. These 440 Corps paid US Federal Income Tax of $117 billion in the most recent year, resulting in an effective US Federal Income Tax Paid Rate of a very modest 9.8%.
And the 225 US Corps, with a very heavy international presence, included in these 440 Big Corps had an effective US Federal Income Tax Rate Paid of only 6.8% in the most recent year.
There were only 24 of these 440 US Corps which had Pretax Income above $10 billion each in the most recent year. But these 24 Gargantuan Corps generated a massive $449 bil in Pretax Income in the most recent year, or a staggering 38% of the Total Pretax Income of all 440 of these Big Corps.
And how much US Federal Income Tax did these 24 huge Corps pay in the most recent year as related to this $449 billion of Total Pretax Income? Only $32 billion, or an effective US Federal Income Tax Rate Paid of a meager 7.2%
Also, the Big Financial Corps had an incredibly low US Federal Income Tax Rate Paid in the most recent year. They receive so many tax incentives even though they were the cause of the US financial meltdown, which the 99% and the US small businesses are still severely suffering from.
And the very fortunate US citizens who have jobs would love to go their company's Human Resource Dept and see if they could change their income tax status to that of a very low-taxed US Big Multinational Corp, or even a very low-taxed US Big Financial Corp, or better yet, an even very lower taxed US Big Oil Corp.
There clearly is way too much concentration of wealth in the huge US Multinational Corps. And with their awesome power, they now effectively control the country, with the Republicans in the US House and US Senate very successfully acting as their facilitators, under the deceptive pretense of helping small businesses.
The protesters are a very bright lot. They perceptively have it all figured out. They know that the Republican Leadership in both the US House and US Senate are simply being used as pawns of these huge US Big Multinational Corps.
The US Republican leadership, acting on behalf of Big Corps, think the protesters will shortly throw in the towel. They just don't get it.
The protesters are out to change the way the country's government works. Their efforts are noble and very patriotic. You'll see their ranks keep growing, as more and more people see their interests as common with that of the protesters.
Clearly, unions and veterans have common interests with the protest movement. So do government workers: federal, state, and local. So do college students, both undergrads and graduate students. So do recent college grads. So do recent high school grads. So do all of the middle class. So do homeowners underwater on their mortgages. So do retired people. So do all small businesses. So do most larger, purely domestic businesses. And so do all progressives.
I think the protesters should thoroughly review the Obama Administration's American Jobs Act and try to shape it to make it much more effective as a job creator. It is pretty clear that the Republicans in both the US House and the US Senate have decided to shirk this critical responsibility.
Many of these very bright, very talented protesters are college graduates with massive amounts of Education Debt, and with little opportunity to find a job in their field of expertise. I think they should push for wise job creation initiatives that would also permit them to reduce their Education Loans.
And I think these protesters should also be pushing for a much more extensive job creation plan.
Clearly, tax reform should be part of it. The key is reducing the US federal income tax rate on all businesses, with a particular focus on the tax rate on the lower amounts of business income. The small businesses create the jobs, and thus should be getting the tax incentives.
And the Big US Multinational Corps should be funding the lower tax rate on the lower amounts of business income. This can wisely be done by closing all of the many, gigantic corporate tax loopholes and also by instituting a minimum tax each year on all large Multinational Corps, which are overdosing on shipping income, and the related jobs, overseas.
I think the protesters will be on the side of the small businesses here. In addition to being fair, it is also in their best interests, because US job creation will be driven by US small business growth.
I see a battle with the US Big Corps, and their US Republican House and Senate Leadership parrots, on one side, as Goliath, and the protesters on the other side, as David.
The Big Corps think that the protesters will be no match.....after all, there is no one lobbying on their behalf.
I think the Big Corps are clearly understating the power, intelligence, and resolve of these protesters.
I'm betting that the protesters will eventually win out and prevent the Big Corps from obtaining the out-sized tax benefits they are expecting to receive from Tax Reform.
There is no way these astute protesters are going to permit US Big Corps to get their US Federal Income Tax Rate on US Taxable Income above $1 bil reduced much below the current 35% tax rate.
And there is also no way these wise protesters are going to permit US Big Corps to repatriate, with a tax holiday, their roughly $2 trillion of foreign earnings, sitting in foreign tax havens.
And there is no way these perceptive protesters are going to permit these US Big Corps to continue to take advantage of all of these massive amounts of Corporate Tax Loopholes.
If the US Big Corps were to again get their way on their totally unfair, unconscionably greedy Corporate Tax Demands in the Current Tax Reform Supercommittee Negotiations, it wouldn't surprise me if you see these protesters forming a Third Party, perhaps even calling it something like the People's Party.
In this post, I will summarize similar key financial information related to the 192 US Corps, with Worldwide Pretax Income(PTI) between $0.5 bil and $1.0 bil each in the most recent year through July 2011. Included in these 192 Corps are 14 Utility Corps and 9 Partnerships or REITs.
These 192 larger US Corps generated Total Worldwide Pretax Income of $136.5 bil in the most recent year, and a good estimate of their total US Federal Income Tax Paid was $16.1 bil, thus the estimated total effective US Federal Income Tax Paid Rate was only 11.8%. Excluding these Utilities, Partnerships, and REITs, the estimated total effective US Federal Income Tax Paid Rate was 13.6%.
This US Federal Income Tax paid is the amount disclosed in their income tax footnotes as the Current Federal Income Tax Expense Paid or Payable related to the current year, and thus should be pretty close to the actual US Federal Income Tax paid in the most recent year.
Here is the detailed information for these 192 larger US Corps:
..........................................................................US........Effective
.......................................................................Current........US
.......................................................................Federal.... Federal
......................................................................Income......Income
.......................................................World.........Tax...........Tax
........................................................Wide.........Paid..........Rate
.........................................................PTI........(Benefit)......Paid
........................................................(mils of dollars)
Multinational Corps
Northern Trust................................990...........220........22.2%
Computer Sciences..........................968............19...........2.0%
Avon Products................................945...........(21)........(2.2)%
Adobe Systems...............................943...........260.........27.6%
Discovery Communications............935...........184.........19.7%
Dover.............................................925............34...........3.7%
Noble Corp.....................................917............81...........8.8%
Marvell Technology.......................910..............1...........0.1%
Analog Devices..............................902...........117.........13.0%
Cognizant Technologies(1).............879...........110.........12.5%
Avnet............................................871............64...........7.3%
Altera............................................868............30...........3.5%
Reinsurance Corp..........................864..........(218).....(25.2)%
Zimmer Holdings...........................860...........235.........27.3%
Las Vegas Sands.............................856...........(31)........(3.6)%
Arch Capital Group Ltd..................850............10...........1.2%
Mattel............................................847............14...........1.7%
Invesco Ltd...................................834............45...........5.4%
Brown Forman...............................829...........142.........17.1%
Newfield Exploration.....................829.............(1)........(0.1)%
Polo Ralph Lauren..........................825...........126.........15.3%
Intl Paper.......................................822..........(249).....(30.3)%
Activision Blizzard(2).....................818...........314.........38.4%
ITT.................................................818...........152.........18.6%
Xerox.............................................815...........153.........18.8%
Molson Coors Brewing....................809..............8...........1.0%
Goodrich........................................805............67...........8.3%
Lam Research.................................801............55...........6.9%
NetApp..........................................794...........113.........14.2%
Western Digital..............................780............21...........2.7%
Juniper Networks..........................778.............(8)........(1.0)%
Xilinx............................................771............14...........1.8%
Marsh & McLennan........................769...........(90)......(11.7)%
CIT Group(3).................................768.............(9)........(1.2)%
First Solar......................................762............93.........12.2%
VF Corp.........................................750...........188.........25.1%
Ecolab(1).......................................748...........174.........23.3%
Coca Cola Enterprises....................746..............8...........1.1%
Priceline........................................746..............5...........0.7%
Cameron Intl.................................733...........103.........14.1%
Symantec......................................729............17...........2.3%
CR Bard.........................................718...........168.........23.4%
Moodys.........................................714...........107.........15.0%
Agilent Technologies.....................692...........(40)........(5.8)%
NYSE Euronext.............................686............18...........2.6%
XL Captal Group(1).......................685............40...........5.8%
Joy Global....................................679............33...........4.9%
Arrow Electronics........................679............88.........13.0%
Sherwin Williams.........................678...........127.........18.7%
Motorola Solutions......................677..............7...........1.0%
Amphenol(1)...............................664............78.........11.7%
Paccar.........................................660............25...........3.8%
Ensco Intl(1)................................645............10...........1.6%
Assured Guaranty Ltd(4).............636...........(25)........(3.9)%
Eastman Chemical.......................636...........115.........18.1%
Mead Johnson Nutrition.............634............38...........6.0%
Expedia......................................621...........107.........17.2%
GameStop...................................621...........133.........21.4%
Flextronics(4)............................616............23...........3.7%
Crown Holdings(5).....................614..............0...........0.0%
Intercontinental Exchange(1).....610...........145.........23.8%
Ball Corp....................................606............49...........8.1%
NII Holdings..............................598..............0...........0.0%
Everest re Group Ltd..................591...........(66)......(11.2)%
Fortune Brands..........................588...........(61)......(10.4)%
Whirlpool...................................586..........(101).....(17.2)%
Seagate Technology...................579.............(6)........(1.0)%
Garmin Ltd................................577...........(47).......(8.1)%
Expeditors Intl Washington........564............77.........13.7%
Check Point Software.................564..............7...........1.2%
Wyndham WW...........................563............55...........9.8%
Fluor.........................................560............22...........3.9%
Constellation Brands..................551..........(113).....(20.5)%
Alcoa.........................................548............33...........6.0%
Royal Caribbean........................547..............0...........0.0%
Tiffany.......................................547...........150.........27.4%
Rockwell Automation................544............10...........1.8%
Sigma Aldrich............................544...........111.........20.4%
Energizer Holdings.....................543............67.........12.3%
Allergan(2)................................540...........288.........53.3%
FMC Technologies.....................538............21...........3.9%
Celanese(1)................................538............62.........11.5%
Pitney Bowes..............................535...........170........31.8%
Varian Medical Systems.............533............69.........12.9%
BMC Software.............................531...........(14)........(2.6)%
Cooper Industries......................530............29...........5.5%
Flowserve..................................530............13...........2.5%
Nasdaq OMX Group....................526...........116.........22.1%
Hasbro.......................................508............35...........6.9%
Henry Schein.............................502...........109.........21.7%
Total 90 Multinational Corps.63,385........4,832..........7.6%
Predominantly Domestic Corps
Erie Indemnity..........................999.............(6)........(0.6)%
Southwestern Energy.................995............10...........1.0%
Nordstrom.................................991...........324.........32.7%
Dollar General............................985...........273.........27.7%
BB&T..........................................969...........161.........16.6%
Intuit.........................................966...........268.........27.7%
Fifth Third Bancorp....................940............(5)........(0.5)%
EOG Resources(6)......................933............17...........1.8%
Qwest Communications(7).........925...........(14)........(1.5)%
Lab Corp America......................916...........270.........29.5%
Cimarex Energy.........................914............43...........4.7%
Assurant(2)...............................912...........331.........36.3%
TD Ameritrade..........................912...........169.........18.5%
Ross Stores...............................897...........330.........36.8%
Hudson City Bancorp................892...........335.........37.6%
SAIC.........................................883...........259.........29.3%
Harris Corp...............................881...........229.........26.0%
Safeway.....................................881...........180.........20.4%
Republic Services......................877..........254.........29.0%
WW Grainger.............................854...........283.........33.1%
Gannett.....................................846...........135.........16.0%
Principal Financial....................841............74...........8.8%
NY Community Bank.................837...........221.........26.4%
Dr Pepper Snapple.....................821...........192.........23.4%
Hershey....................................809...........283.........35.0%
Rockwell Collins........................802...........146.........18.2%
Fiserv.......................................793...........224.........28.2%
Key Corp...................................793...........127.........16.0%
Paychex....................................792...........234.........29.5%
Pioneer Natural Resources........788..............0...........0.0%
Charles Schwab.........................779...........326.........41.8%
Torchmark Insurance(4)...........779...........447.........57.4%
Genuine Parts............................762...........222.........29.1%
Smithfield Foods........................757............58...........7.7%
OneOK.......................................755............59...........7.8%
Southwest Airlines.....................745...........198.........26.6%
Davita........................................744...........154.........20.7%
Scripps Networks.......................740...........194.........26.2%
Williams Cos(8)..........................735............81.........11.0%
Linear Technology.....................724...........112.........15.5%
Ultra Petroleum(4).....................723............22...........3.0%
JM Smucker...............................717...........271.........37.8%
American Financial Group.........689...........214.........31.1%
OReilly Automotive...................689...........146.........21.2%
CF Industries.............................688...........142.........20.6%
Coventry Health........................687...........350.........50.9%
H&R Block.................................677...........188.........27.8%
EXCO Resources........................674..............1...........0.1%
Darden Restaurants...................648...........122.........18.8%
Dollar Tree................................630...........216.........34.3%
Hormel Foods............................625...........170.........27.2%
CH Robinson..............................624...........196.........31.4%
Cephalon...................................619...........218.........35.2%
Fidelity National Info Svcs........616...........210.........34.1%
ITT Educational........................614...........217.........35.3%
Carmax.....................................613...........185.........30.2%
Delta Air Lines..........................608.............(7)........(1.2)%
WR Berkley...............................603............79.........13.1%
Cablevision Systems..................591.............(3)........(0.5)%
KBR...........................................586............56...........9.6%
Sunoco......................................586..........(105)......(17.9)%
CHS(1).......................................584..............8...........1.4%
JCPenney(9)..............................581............92.........15.8%
ING Life Insurance&Annuity.....578............73.........12.6%
Walter Energy...........................578............77.........13.3%
Intuitive Surgical......................572...........190.........33.2%
Family Dollar Stores..................564...........174.........30.9%
Clorox.......................................563...........139.........24.7%
Fidelity National Fincl(1)...........562............74.........13.2%
Advance Auto Parts...................557...........152.........27.3%
American Tower........................556..............0...........0.0%
Marriott.....................................551...........117.........21.2%
Whiting Petroleum.....................541..............1...........0.2%
Washington Post........................523...........136.........26.0%
URS...........................................514...........120.........23.3%
Community Health Systems.......508............52..........10.2%
Windstream...............................505............71.........14.1%
US Airways................................502..............0...........0.0%
Cincinnati Financial...................501............94.........18.8%
Total 79 Domestic Corps.......57,511......11,656.........20.3%
Partnerships & REITs
Simon Property Group..............754.............0..........0.0%
Icahn Enterprises LP(1)............753...........(17).......(2.3)%
Vornado Realty Trust(1)...........751............25..........3.3%
Public Storage..........................689..............0..........0.0%
Apollo Global Management......635..............8..........1.3%
Energy Transfer Partners.........633..............1..........0.2%
El Paso Pipeline Partners.........608..............1..........0.2%
Chimera Investment................534..............0..........0.0%
Plains All American Pipeline....513..............0..........0.0%
Total 9 Partnerships&REITs..5,870............18..........0.3%
Utilities
Ameren(2)..............................964............13...........1.3%
DTE Energy.............................950..........(172)......(18.1)%
Sempra Energy.......................786............27...........3.4%
PacifiCorp...............................777..........(498)......(64.1)%
NRG Energy............................753...........211.........28.0%
CenterPoint Energy................705............40...........5.7%
Wisconsin Energy(1)...............704...........145.........20.6%
Constellation Energy(10)........702...........(47)........(6.7)%
Allegheny Energy....................628.............7...........1.1%
Northeast Utilities..................605..............9...........1.5%
CMS Energy.............................590...........(21)........(3.6)%
SCANA....................................534...........(47)........(8.8)%
UGI Corp.................................523............61.........11.7%
Pinnacle West Capital..............515..........(109)......(21.2)%
Total 14 Utility Corps...........9,736..........(381).......(3.9)%
Grand Total 192 Corps......136,502........16,125........11.8%
(1) US Federal Income Tax Paid also includes US State Income Tax Paid.
(2) PTI excludes large Intangible Asset Impairment Charge.
(3) Foreign Income Tax Paid includes both Current and Deferred Income Taxes.
(4) US Federal Income Tax Paid includes all Worldwide Income Tax Paid.
(5) Foreign Income Tax Paid also includes US State Income Tax Paid.
(6) PTI excludes large Oil and Gas Property Asset Impairment Charge.
(7) PTI excludes large Loss on Embedded Option in Convertible Debt Charge.
(8) PTI excludes both large Intangible Asset Impairment Charge and large Oil and Gas Property Asset Impairment Charge.
(9) US Federal Income Tax Paid also includes Foreign Income Tax Paid.
(10) PTI excludes huge Asset Impairment Charge.
Focusing now on which of these larger 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 32 of them, whose US Federal Income Tax Paid Mix (i.e. US as a % of Worldwide) is at least 10% lower than their US Pretax Income Mix:
...........................................US..................................US
.........................................Current............................Tax
...........................................Fed...............................Paid
...........................................Inc............US.................vs
...........................................Tax............PTI............Income
...........................................Mix...........Mix............Spread
Fortune Brands.................(610)%........18%.............(628)%
Garmin Ltd.......................(294)%........28%.............(322)%
Constellation Brands........(112)%........172%.............(284)%
Reinsurance Corp..............(141)%........63%.............(204)%
Intl Paper.........................(137)%.........24%.............(161)%
Las Vegas Sands...............(119)%........(12)%............(107)%
BMC Software.....................(52)%.........55%.............(107)%
Pioneer Natural Resources.....0%.........99%..............(99)%
American Tower....................0%.........96%..............(96)%
Newfield Exploration..........(2)%.........79%..............(81)%
Molson Coors Brewing.........17%.........96%..............(79)%
EOG Resources.....................10%.........81%..............(71)%
Juniper Networks..............(22)%.........48%..............(70)%
Fluor...................................19%..........81%..............(62)%
Agilent Technologies........(38)%.........24%..............(62)%
Whirlpool..........................(98)%........(44)%............(54)%
Seagate Technology..........(27)%.........17%..............(45)%
Computer Sciences.............16%..........60%..............(44)%
Motorola Solutions...............4%..........39%..............(35)%
Joy Global..........................26%..........57%..............(31)%
Dover.................................24%..........51%..............(26)%
Flowserve...........................12%..........38%..............(26)%
Wyndham WW....................56%..........79%..............(23)%
Western Digital...................64%..........85%..............(21)%
Fidelity Natl Info Svcs........89%........109%.............(20)%
Marsh & McLennan..........(57)%........(38)%............(18)%
Symantec..........................20%..........37%..............(17)%
Priceline.............................3%...........18%..............(15)%
Ball Corp...........................38%...........53%..............(14)%
Paccar..............................17%............28%..............(11)%
Williams Cos.....................67%...........76%..............(10)%
Sempra Energy.................47%...........57%..............(10)%
US Multinational Corps receive a lift in their worldwide after-tax earnings when they shift their income from the higher income taxed US to lower income taxed foreign jurisdictions. A clear problem with this income shift by US Multinational Corps is that the severely-depressed US Government financial coffers suffer, as do US State Government coffers.
Below here are the 104 of the above US Corps, with at least some international presence, which disclosed financial information needed for me to compute both the US Pretax Income Mix (as a % of Worldwide Pretax Income) and the Average of US Revenue Mix and US Asset Mix (both as a % of the Worldwide Amounts).
.................................................................................Patriotic
..................................................................................Spread
................................................................................US PTI vs
...........................................US........US.........US....US Average of
..........................................PTI.......Rev......Asset.....US Revs &
..........................................Mix.......Mix.......Mix......US Assets
CIT Group.........................(52)%.....65%.......58%........(114)%
Alcoa................................(74)%.....50%.......23%........(110)%
Marsh & McLennan...........(38)%.....45%.......62%.........(92)%
Whirlpool.........................(44)%.....45%.......36%.........(84)%
Cooper Industries.................9%.....65%.......61%.........(54)%
Avon Products.................(24)%.....16%.......42%.........(53)%
Priceline.............................18%.....53%........88%........(52)%
Intl Paper...........................24%.....77%.......70%........(49)%
Fortune Brands..................18%.....67%........66%........(49)%
NYSE Euronext..................24%.....69%........67%........(44)%
Mattel................................15%.....54%........60%........(43)%
Rockwell Automation........27%.....51%........79%........(37)%
NII Holdings...................(37)%.......0%.........0%........(37)%
Las Vegas Sands..............(12)%......22%........25%........(36)%
Hasbro..............................33%......54%........84%........(36)%
Adobe Systems..................30%.....44%........87%........(35)%
NetApp..............................39%.....51%........92%........(32)%
Sempra Energy..................57%.....90%........87%........(32)%
Garmin Ltd........................28%.....61%........54%........(29)%
Marvell Technology.............3%.......4%........56%........(28)%
Motorola Solutions............39%.....58%........76%........(28)%
Symantec...........................37%.....49%........80%........(27)%
Altera.................................13%.....17%........65%........(27)%
Mead Johnson Nutrition.....17%.....32%........53%........(25)%
Xilinx..................................21%.....26%........65%........(25)%
Safeway...............................62%.....85%........87%........(23)%
Lam Research.....................20%.....12%........71%........(22)%
Williams Cos.......................76%.....97%........97%........(21)%
ITT.....................................43%.....66%........61%........(21)%
First Solar............................6%.....13%........36%........(19)%
Arrow Electronics..............46%.....44%........85%........(18)%
Ensco Intl...........................14%.....25%........39%........(18)%
Paccar................................28%.....41%........51%........(17)%
KBR....................................18%.....21%........50%........(17)%
Agilent Technologies..........24%.....32%........48%........(17)%
VF Corp.............................56%.....70%........74%........(16)%
Crown Holdings...................7%.....28%........18%........(16)%
Juniper Networks..............48%.....46%........80%........(16)%
IntercontinentalExchange.56%.....53%........89%........(15)%
Avnet................................31%.....38%........55%........(15)%
Cognizant Technologies.....25%.....78%.........2%........(15)%
Energizer Holdings............42%.....52%........61%........(15)%
Expedia.............................61%.....62%........90%........(15)%
CR Bard.............................64%.....69%........87%........(15)%
FMC Technologies.............12%.....23%........30%........(14)%
Noble Corp.......................14%.....20%........36%........(14)%
Intuitive Surgical.............77%.....80%........98%........(12)%
Xerox...............................53%.....64%........63%........(10)%
Zimmer Holdings..............44%.....54%........ND.........(10)%
Dover...............................51%.....54%........65%.........(9)%
Cameron Intl....................50%.....53%........64%.........(9)%
Varian Medical Systems....53%.....41%........80%.........(8)%
Pitney Bowes....................73%.....83%........75%.........(6)%
Flowserve.........................38%.....33%........54%.........(5)%
Ball Corp...........................53%.....69%........47%.........(5)%
Northern Trust.................67%.....73%........71%.........(5)%
Newfield Exploration........79%.....76%........91%.........(4)%
Seagate Technology..........17%.....28%........15%.........(4)%
EOG Resources..................81%.....84%........84%.........(3)%
Discovery Commun..........61%.....66%........61%.........(3)%
Clorox..............................79%.....79%........85%.........(3)%
Expeditors Intl Wash........35%.....24%........50%.........(2)%
BMC Software...................55%.....51%........61%.........(2)%
H&R Block........................95%.....95%........ND............0%
Dr Pepper Snapple............91%.....89%........93%...........0%
Gannett............................90%.....90%........ND............0%
Sherwin Williams..............79%.....78%........81%...........0%
Amphenol.........................34%.....35%........32%...........0%
Joy Global.........................57%.....61%........52%...........0%
Computer Sciences............60%.....63%........56%...........1%
URS...................................84%.....91%........74%...........1%
Tiffany...............................64%.....48%........76%...........2%
Reinsurance Corp..............63%.....60%........60%...........3%
Moodys.............................55%.....54%........50%...........3%
Analog Devices..................32%.....18%........40%...........3%
Pioneer Natural Resour......99%.....95%........95%...........4%
Nasdaq OMX Group...........75%.....80%........60%...........4%
Polo Ralph Lauren.............70%.....67%........61%...........6%
Wyndham WW...................79%.....74%........70%...........6%
Henry Schein.....................69%.....63%........60%...........7%
Washington Post................96%.....89%.........ND............7%
Harris Corp........................99%.....93%........88%...........9%
UGI Corp............................86%.....81%........73%...........9%
JM Smucker......................102%.....90%........95%...........9%
Smithfield Foods.................89%.....89%........68%..........10%
WW Grainger.......................94%.....82%........85%..........10%
Rockwell Collins..................91%.....71%........89%..........11%
Eastman Chemical..............80%.....48%........87%..........12%
Ecolab................................67%.....52%........55%..........13%
Sigma Aldrich.....................63%.....37%........63%..........14%
CF Industries......................98%.....85%........84%..........14%
American Tower.................96%.....81%........81%..........15%
Celanese.............................40%.....26%........22%..........16%
Goodrich............................74%.....50%........63%..........17%
Hershey............................104%.....85%........85%..........19%
Fidelity Natl Info Svcs.......109%.....83%........78%..........29%
GameStop...........................89%.....71%........46%..........31%
Lab Corp America...............96%.....ND.........64%..........32%
Cephalon..........................101%.....76%........60%..........33%
Fluor..................................81%.....37%........56%..........35%
Brown Forman...................84%.....48%........ND............36%
Western Digital...................85%.....17%........49%..........52%
Molson Coors Brewing........96%.......1%........20%..........85%
Constellation Brands.........172%.....63%........73%........104%
ND means no disclosure.
============================================
The protesters all throughout the country are spot on. The top 1%, as well as the huge US Multinational Corps, are ruling the country to the demise of everyone else....the other 99% and the small businesses.
The US House and US Senate Republican Leadership continue to parrot the talking points of the US Big Multinational Corps....."Government Regulation is killing jobs".
What an absolute joke! The protesters aren't buying it, and for the Republicans to continue to harp on that makes the protesters even more determined to fix the country's economy.
The lack of US Government Regulation, in the Bush/Cheney Presidential years, has resulted in so many huge US Multinational Corps paying very little tax. They were able to do this by shifting income and the related jobs overseas to foreign tax havens, like Ireland, Singapore, China, even Puerto Rico, and many more places.
In my research in my most recent 6 posts, I found 440 US Corps with Pretax Income above $500 mil each, which generated a massive Total Pretax Income of nearly $1.2 trillion in the most recent year. These 440 Corps paid US Federal Income Tax of $117 billion in the most recent year, resulting in an effective US Federal Income Tax Paid Rate of a very modest 9.8%.
And the 225 US Corps, with a very heavy international presence, included in these 440 Big Corps had an effective US Federal Income Tax Rate Paid of only 6.8% in the most recent year.
There were only 24 of these 440 US Corps which had Pretax Income above $10 billion each in the most recent year. But these 24 Gargantuan Corps generated a massive $449 bil in Pretax Income in the most recent year, or a staggering 38% of the Total Pretax Income of all 440 of these Big Corps.
And how much US Federal Income Tax did these 24 huge Corps pay in the most recent year as related to this $449 billion of Total Pretax Income? Only $32 billion, or an effective US Federal Income Tax Rate Paid of a meager 7.2%
Also, the Big Financial Corps had an incredibly low US Federal Income Tax Rate Paid in the most recent year. They receive so many tax incentives even though they were the cause of the US financial meltdown, which the 99% and the US small businesses are still severely suffering from.
And the very fortunate US citizens who have jobs would love to go their company's Human Resource Dept and see if they could change their income tax status to that of a very low-taxed US Big Multinational Corp, or even a very low-taxed US Big Financial Corp, or better yet, an even very lower taxed US Big Oil Corp.
There clearly is way too much concentration of wealth in the huge US Multinational Corps. And with their awesome power, they now effectively control the country, with the Republicans in the US House and US Senate very successfully acting as their facilitators, under the deceptive pretense of helping small businesses.
The protesters are a very bright lot. They perceptively have it all figured out. They know that the Republican Leadership in both the US House and US Senate are simply being used as pawns of these huge US Big Multinational Corps.
The US Republican leadership, acting on behalf of Big Corps, think the protesters will shortly throw in the towel. They just don't get it.
The protesters are out to change the way the country's government works. Their efforts are noble and very patriotic. You'll see their ranks keep growing, as more and more people see their interests as common with that of the protesters.
Clearly, unions and veterans have common interests with the protest movement. So do government workers: federal, state, and local. So do college students, both undergrads and graduate students. So do recent college grads. So do recent high school grads. So do all of the middle class. So do homeowners underwater on their mortgages. So do retired people. So do all small businesses. So do most larger, purely domestic businesses. And so do all progressives.
I think the protesters should thoroughly review the Obama Administration's American Jobs Act and try to shape it to make it much more effective as a job creator. It is pretty clear that the Republicans in both the US House and the US Senate have decided to shirk this critical responsibility.
Many of these very bright, very talented protesters are college graduates with massive amounts of Education Debt, and with little opportunity to find a job in their field of expertise. I think they should push for wise job creation initiatives that would also permit them to reduce their Education Loans.
And I think these protesters should also be pushing for a much more extensive job creation plan.
Clearly, tax reform should be part of it. The key is reducing the US federal income tax rate on all businesses, with a particular focus on the tax rate on the lower amounts of business income. The small businesses create the jobs, and thus should be getting the tax incentives.
And the Big US Multinational Corps should be funding the lower tax rate on the lower amounts of business income. This can wisely be done by closing all of the many, gigantic corporate tax loopholes and also by instituting a minimum tax each year on all large Multinational Corps, which are overdosing on shipping income, and the related jobs, overseas.
I think the protesters will be on the side of the small businesses here. In addition to being fair, it is also in their best interests, because US job creation will be driven by US small business growth.
I see a battle with the US Big Corps, and their US Republican House and Senate Leadership parrots, on one side, as Goliath, and the protesters on the other side, as David.
The Big Corps think that the protesters will be no match.....after all, there is no one lobbying on their behalf.
I think the Big Corps are clearly understating the power, intelligence, and resolve of these protesters.
I'm betting that the protesters will eventually win out and prevent the Big Corps from obtaining the out-sized tax benefits they are expecting to receive from Tax Reform.
There is no way these astute protesters are going to permit US Big Corps to get their US Federal Income Tax Rate on US Taxable Income above $1 bil reduced much below the current 35% tax rate.
And there is also no way these wise protesters are going to permit US Big Corps to repatriate, with a tax holiday, their roughly $2 trillion of foreign earnings, sitting in foreign tax havens.
And there is no way these perceptive protesters are going to permit these US Big Corps to continue to take advantage of all of these massive amounts of Corporate Tax Loopholes.
If the US Big Corps were to again get their way on their totally unfair, unconscionably greedy Corporate Tax Demands in the Current Tax Reform Supercommittee Negotiations, it wouldn't surprise me if you see these protesters forming a Third Party, perhaps even calling it something like the People's Party.
Monday, October 3, 2011
US 5th Biggest Corps: Tax Loophole Perspectives
In my most recent four 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, to the 30 second largest US Corps, with Pretax Income between $5 bil and $10 bil, to the 43 third largest US Corps, with Pretax Income between $3 and $5 bil, and to the 41 fourth largest US Corps, with Pretax Income between $2 bil and $3 bil.
In this post, I will summarize similar key financial information related to the 110 fifth largest US Corps, with Worldwide Pretax Income between $1 bil and $2 bil each in the most recent year.
Here is the detailed information for these 110 fifth most profitable group of US Corps:
................................................................US........Effective
.............................................................Current........US
.............................................................Federal.... Federal
............................................................Income......Income
.............................................World.........Tax...........Tax
..............................................Wide.........Paid..........Rate
...............................................PTI........(Benefit)......Paid
..............................................(mils of dollars)
Multinational Corps
Carnival.............................1,979.............0...........0.0%
Praxair.................................1,964...........133............6.8%
Covidien...............................1,926...........308..........16.0%
Micron Technology.........1,920..........(66)........(3.4)%
Baxter................................1,890............73...........3.9%
Johnson Controls.................1,763...........112............6.4%
Kellogg.................................1,742............97............5.6%
Stryker.................................1,730...........308..........17.8%
Becton Dickinson..................1,661...........307..........18.5%
Anadarko Petroleum............1,641...........305..........18.6%
Cummins..........................1,617..............11...........0.7%
Yum Brands.........................1,594...........155...........9.7%
TE Connectivity...................1,558...........342..........22.0%
LyondellBasell.................1,512............43...........2.8%
Spectra Energy....................1,506...........105...........7.0%
Amazon.com(1)...................1,497...........311..........20.8%
Monsanto............................1,494...........260..........17.4%
Sandisk................................1,457...........269..........18.5%
Parker Hannifin...................1,414...........121............8.6%
Murphy Oil..........................1,414...........105............7.4%
Air Products&Chems...........1,394...........101............7.2%
Applied Materials................1,387...........463..........33.4%
HJ Heinz...........................1,374............39...........2.8%
Staples................................1,357...........142..........10.5%
Omnicom Group.................1,350...........107...........7.9%
McGraw-Hill.......................1,339...........246..........18.4%
Forest Labs.........................1,338...........162..........12.1%
Diamond Offshore...............1,336...........184..........13.8%
Coach.................................1,301...........345..........26.5%
Transocean(2)....................1,299...........456..........35.1%
Cliff's Natural Resources.....1,298...........108............8.3%
PPG Industries....................1,295............62............4.8%
Baker Hughes......................1,282...........179..........14.0%
Tyco International........1,270............45...........3.5%
Biogen IDEC........................1,230...........358..........29.1%
St Jude Medical..................1,209...........264..........21.8%
CA......................................1,209...........110...........9.1%
Ally Financial.................1,179.............12...........1.0%
Campbell Soup...................1,168...........215..........18.4%
Thermo Fisher Scientific....1,165...........257..........22.1%
Boston Scientific(4).......1,161...........(83).........(7.1)%
Western Union...................1,145...........104...........9.1%
Peabody Energy.................1,113...........114..........10.2%
KLA Tencor.......................1,110...........225..........20.3%
Broadcom.......................1,097............(4).........(0.4)%
Yahoo..............................1,070............26...........2.4%
AON.................................1,059.............16...........1.5%
AES..................................1,044............(8).........(0.8)%
TRW Automotive..........1,041.............0...........0.0%
Eaton..............................1,036............(2).........(0.2)%
Noble Energy.................1,031............25...........2.4%
Estee Lauder....................1,026...........127..........12.4%
Celgene.............................1,013...........185..........18.3%
Ingersoll-Rand(1).........1,007............29...........2.9%
Lubrizol............................1,004............97............9.7%
Total 54 Multi-nationals.75,016.........8,005.........10.7%
Predominantly Domestic Corps
GAP..................................1,982...........476..........24.0%
ADP..................................1,933...........449..........23.2%
Express Scripts.................1,909...........546..........28.6%
Cigna................................1,870...........267..........14.3%
Sysco(3)...........................1,827...........570..........31.2%
Kohls................................1,782...........562..........31.5%
Humana............................1,750...........786..........44.9%
Kroger..............................1,734...........697..........40.2%
CME Group.......................1,722...........602..........35.0%
McKesson.........................1,635...........283..........17.3%
Lorrilard..........................1,635...........489..........29.9%
Waste Management..........1,631...........354..........21.7%
Progressive Corp..............1,565...........434..........27.7%
DISH Network..................1,542...........288..........18.7%
CenturyLink.....................1,532...........384..........25.1%
Cardinal Health................1,518...........388..........25.6%
Valero Energy..............1,498...........(75).........(5.0)%
Precision Castparts..........1,494...........341..........22.8%
L-3 Communications........1,484...........302..........20.4%
Starbucks.........................1,437...........458..........31.9%
Unum Group....................1,331...........247..........18.6%
Macy's.............................1,320...........217..........16.4%
El Paso Corp..................1,310.............(4).........(0.3)%
Bed Bath & Beyond...........1,293...........427..........33.0%
Discover Fincl Services....1,269...........321..........25.3%
Limited Brands................1,251...........406..........32.5%
Lincoln National.........1,234.........(244).......(19.8)%
ConAgra Foods................1,225...........157..........12.8%
CBS..................................1,222.............89...........7.3%
Oshkosh...........................1,212...........463..........38.2%
Tyson Foods(3)................1,203...........374..........31.1%
Quest Diagnostics.............1,184...........347..........29.3%
Autozone.........................1,161...........397..........34.2%
Liberty Media..................1,158...........323..........27.9%
Allstate............................1,126...........133..........11.8%
CNA Financial...............1,112...............6...........0.5%
M&T Bank.........................1,093...........250..........22.9%
SLM..................................1,090..........252...........23.1%
T Rowe Price....................1,070...........266..........24.9%
AmerisourceBergen.........1,028...........269..........26.2%
Santander Holdings USA..1,019...........287..........28.2%
Apollo Group...................1,001...........458..........45.8%
Total 42 Domestics........59,392.......14,042.........23.6%
Partnerships & REIT
Enterprise Prodts Prtnrs..1,410.............2...........0.1%
KinderMorganEgyPrtnrs..1,362.............5...........0.4%
Annaly Capital Mgt..........1,300.............0...........0.0%
Total 3 Prtnrships&REIT.4,072.............7...........0.2%
Total Utilities
Entergy...........................1,888...........145...........7.7%
American Electric Power.1,849..........(134).........(7.2)%
PG&E...............................1,660...........(12).........(0.7)%
Edison Intl......................1,657..........(432).......(26.1)%
MidAmerican Energy......1,465..........(822).......(56.1)%
Progress Energy..............1,406...........(46).........(3.3)%
Consolidated Edison........1,399..........(144).......(10.3)%
FirstEnergy.....................1,242...........(23)..........(1.9)%
PPL.................................1,239...........(51)..........(4.1)%
Xcel Energy.....................1,189............17.............1.4%
Total 10 Utilities...........14,994........(1,502)......(10.0)%
Total all 110 Corps......153,474........20,552.........13.4%
(1) Amazon.com and Ingersoll-Rand above US Federal Income Tax Paid also include US State Income Tax Paid.
(2) Transocean above US Federal Income Tax Paid also includes all other global income tax paid.
(3) Sysco and Tyson Food's above US Federal Income Tax Paid also include US Deferred Income Tax Expense.
(4) Boston Scientific PTI excludes large Goodwill Impairment Charge.
When I combine these 110 US Big Corps with all the other 138 larger US Big Corps, I get Total US Federal Income Tax Paid of $100.5 bil in the most recent year, as compared with Total Pretax Income of $1,059.4 bil, or an effective US Federal Income Tax Rate Paid of an extremely modest 9.5%.....no wonder the country is suffering from such steep annual deficits.
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%
41 Corps with Pretax Income between $2 and $3 bil.........10.4%
110 Corps with Pretax Income between $1 bil and $2 bil..13.4%
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, and even the larger predominantly domestic 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.
When I get some time, I'll next be researching the effective US Federal Income Tax Rates Paid, and the other salient tax information, of the many US Corps in the somewhat smaller Pretax Income range between $.5 bil and $1 bil in the most recent year. It should be interesting.
Let me move to the US Multinational Corps included in this group of US Corps.
Below here shows the Income Tax paid by the 53 US Multinational Corps to the US Government and to Foreign Governments in the most recent year, where the information was available.
.............................US...........................Foreign
...........................Current......Foreign...Current
.............................Fed..........Current.......Inc
.............................Inc.............Inc...........Tax
.............................Tax............Tax.........Paid
............................Paid............Paid......(Benefit)
..........................(Benefit).....(Benefit).....Mix
...........................(mils of dollars)
Boston Scientific.....(83)..........125........298%
Micron Technology.(66)...........24........157%
Broadcom.................(4)...........21........124%
Eaton........................(2)..........107........102%
AES..........................(8)..........699........101%
TRW Automotive.......0...........108........100%
Ally Financial...........12...........474.........98%
Cummins..................11...........410.........97%
AON.........................16...........202.........93%
Noble Energy...........25...........208.........89%
Tyco Intl..................45...........194.........81%
HJ Heinz...................39...........161.........81%
Baxter......................73...........297.........80%
Ingersoll-Rand.........29...........115.........80%
Praxair...................133...........484.........78%
Murphy Oil.............105...........348.........77%
PPG Industries..........62...........170.........73%
Baker Hughes..........179...........472.........73%
Yum Brands............155...........356.........70%
Omnicom Group.....107...........233.........69%
LyondellBasell..........43............90.........68%
Anadarko Petro......305...........628.........67%
Estee Lauder...........127...........220.........63%
Yahoo........................26............43.........62%
Parker Hannifin........121...........193.........61%
Cliffs Natural Res......108...........166.........61%
Air Products&Chem..101...........140.........58%
Lubrizol.....................97...........131.........57%
Kellogg......................97...........129.........57%
Johnson Controls.....112...........141.........56%
Diamond Offshore.....184...........203.........52%
CA............................110............88.........44%
Stryker.....................308...........231.........43%
Staples.....................142...........103.........42%
Western Union.........104............73.........41%
Peabody Energy.......114............71.........38%
Covidien...................308...........181.........37%
Becton Dickinson......307...........170.........36%
McGraw-Hill.............246...........128.........34%
Monsanto.................260...........129.........33%
Thermo Fisher Sci.....257...........104.........29%
Campbell Soup..........215............78.........27%
Spectra Energy.........105............38.........27%
Forest Labs..............162............57.........26%
Applied Materials.....463...........134.........22%
Celgene....................185............42.........19%
St Jude Medical........264............57.........18%
TE Connectivity........342............71.........17%
Sandisk.....................269............40.........13%
KLA Tencor...............225............31.........12%
Biogen IDEC..............358............35..........9%
Amazon.com.............311............12..........4%
Coach.......................345............(3)........(1)%
Total all 53 Corps..7,549........9,162........55%
Yeah, that's right, these 53 US Corps paid 55% of their combined Worldwide Federal Income Taxes to Foreign Countries. Another way of saying this is that these 53 US Corps paid 21% more to Foreign Governments in income taxes than they did to the US Government. That's good for helping out the finances of Foreign Governments, not so good for aiding the US Government in dealing with its massive debt.
Focusing now 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 28 of them, whose US Federal Income Tax Paid Mix (i.e. US as a % of Worldwide) is substantially lower than their US Pretax Income Mix:
...................................US..................................US
.................................Current............................Tax
...................................Fed...............................Paid
...................................Inc............US.................vs
...................................Tax............PTI............Income
...................................Mix...........Mix............Spread
PPL..........................(165)%.........79%...........(244)%
Valero Energy..........(142)%.........96%...........(238)%
Micron Technology..(157)%.........72%...........(229)%
El Paso Corp..............(57)%.........94%...........(151)%
Ally Financial...............2%..........49%............(47)%
Broadcom..................(24)%.........21%............(44)%
Yahoo.........................38%..........81%............(44)%
TRW Automotive.........0%..........37%............(37)%
CBS............................60%..........88%............(28)%
Apollo Group...........100%.........123%............(23)%
HJ Heinz....................20%..........41%............(22)%
Anadarko Petroleum...33%..........52%............(19)%
Monsanto..................67%..........83%............(16)%
Baker Hughes.............27%..........42%............(14)%
McGraw-Hill..............66%..........79%............(14)%
Eaton.........................(2)%..........11%............(13)%
Cummins.....................3%..........15%............(12)%
Noble Energy..............11%..........23%............(12)%
PPG Industries............27%..........39%............(12)%
Praxair.......................22%..........33%............(11)%
Omnicom Group.........31%..........42%............(11)%
Parker Hannifin...........39%..........48%............(10)%
Diamond Offshore........48%..........57%.............(9)%
Campbell Soup............73%..........81%.............(7)%
GAP...........................78%..........85%.............(7)%
Staples.......................58%..........65%.............(7)%
Cliff's Natural Res......39%..........46%.............(7)%
CA.............................56%..........62%.............(7)%
And below here are the 59 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
AES....................(129)%........16%........(144)%
Forest Labs...........25%.........98%.........(73)%
Tyco Intl.............(19)%........49%.........(67)%
Ingersoll-Rand......(4)%........62%.........(66)%
Estee Lauder.......(16)%........38%.........(53)%
Eaton....................11%.........56%.........(45)%
Noble Energy........23%.........65%.........(42)%
AON.......................2%.........40%.........(38)%
Celgene.................23%.........60%.........(37)%
Stryker.................33%.........65%.........(33)%
Baxter..................10%..........41%.........(31)%
Anadarko Petro.....52%.........81%.........(29)%
TE Connectivity......2%.........27%.........(26)%
Cummins..............15%.........36%.........(21)%
McKesson.............71%.........91%.........(20)%
Ally Financial.......49%.........67%.........(18)%
Omnicom Group....42%.........59%.........(17)%
Western Union......13%.........29%.........(16)%
Yum Brands..........22%.........36%.........(15)%
Peabody Energy...48%.........62%.........(13)%
Cardinal Health.....86%.........98%.........(13)%
AirProdcts&Chem.33%.........46%.........(12)%
PPL......................79%.........91%.........(12)%
Parker Hannifin....48%.........58%.........(10)%
Praxair.................33%.........39%..........(7)%
St Jude Medical....46%.........51%..........(6)%
CA........................62%.........67%..........(5)%
Murphy Oil...........15%.........18%..........(3)%
PPG Industries.....39%.........42%..........(3)%
L-3 Communicat...85%.........88%..........(3)%
Covidien...............52%.........55%..........(3)%
Staples..................65%.........67%..........(2)%
Waste Managemnt.93%.........94%..........(1)%
Baker Hughes.......42%.........42%............0%
Johnson Controls.38%.........38%............0%
ThermoFisher Sci.68%.........67%............0%
CBS......................88%.........85%............2%
HJ Heinz..............41%.........37%............4%
Cliffs Natural Res.46%.........42%............4%
Amazon.com.......59%.........55%............4%
GAP....................85%.........80%............5%
Coach.................76%.........70%............6%
Precision Cstprts.89%.........83%............6%
ADP....................87%.........80%............6%
McGraw-Hill.......79%.........71%............9%
BectonDickinson.54%.........45%............9%
Kellogg...............73%.........63%...........10%
Campbell Soup....81%.........69%...........12%
Starbucks............91%.........78%...........13%
Valero Energy.....96%.........82%...........14%
Yahoo.................81%.........67%...........14%
Lubrizol..............47%.........33%...........14%
TRWAutomotive.37%.........22%...........15%
Biogen IDEC........69%.........50%...........19%
Monsanto...........83%.........57%...........25%
Spectra Energy...60%.........34%...........26%
Apollo Group....123%.........94%...........29%
DiamondOffshre.57%.........19%...........37%
AppliedMaterial.57%..........12%..........45%
KLA Tencor........68%..........19%...........49%
MicronTechnlgy.72%..........17%..........55%
Sandisk..............87%..........17%..........71%
And below here are the 62 of these fifth group of 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
AES............................(129)%........25%........(154)%
Tyco Intl......................(19)%........69%.........(87)%
Ingersoll-Rand...............(4)%........78%.........(83)%
Estee Lauder.................(16)%........59%.........(75)%
Western Union................13%.........81%.........(68)%
AON.................................2%.........65%.........(63)%
Broadcom.......................21%........72%..........(51)%
Noble Energy.................23%........68%..........(46)%
Cummins........................15%........60%..........(45)%
Celgene..........................23%........67%..........(44)%
Anadarko Petroleum.....52%........90%..........(38)%
Eaton............................11%........44%..........(33)%
Stryker..........................33%........64%..........(31)%
Baxter...........................10%........39%..........(29)%
St Jude Medical.............46%........73%..........(27)%
TE Connectivity..............2%........29%..........(27)%
Omnicom Group............42%........69%..........(26)%
Covidien.......................52%........76%..........(23)%
Amazon.com.................59%........81%..........(22)%
Yum Brands..................22%........42%..........(21)%
McKesson.....................71%........91%..........(20)%
CliffsNaturalResources..46%........63%..........(17)%
Murphy Oil...................15%........31%..........(16)%
Applied Materials.........57%........72%..........(15)%
Lubrizol.......................47%........61%..........(14)%
CBS...............................88%........96%...........(9)%
PPG Industries..............39%........47%...........(9)%
Yahoo..........................81%........89%...........(8)%
Cardinal Health.............86%........92%...........(7)%
Baker Hughes................42%........48%...........(6)%
PPL...............................79%........84%...........(5)%
Praxair.........................33%........36%...........(3)%
Coach...........................76%........79%...........(3)%
Forest Labs..................25%........28%...........(3)%
Peabody Energy...........48%........50%...........(2)%
Becton Dickinson.........54%........55%...........(2)%
Air Products&Chems....33%........35%...........(1)%
Johnson Controls.........38%........38%...........(1)%
Parker Hannifin............48%........48%.............0%
ADP.............................87%........86%.............1%
McGraw-Hill................79%........77%.............2%
Waste Management......93%........89%.............4%
GAP.............................85%........80%.............6%
Precision Castparts......89%........83%.............7%
HJ Heinz.....................41%........33%.............8%
Biogen IDEC................69%........60%.............9%
Kellogg.......................73%........64%.............9%
Valero Energy.............96%........86%............10%
Thermo Fisher Sci......68%........56%............12%
Micron Technology....72%........59%............13%
Monsanto...................83%........70%............13%
Staples.......................65%........51%............14%
Starbucks...................91%........77%............14%
CA..............................62%........48%............14%
Spectra Energy..........60%........42%............18%
TRW Automotive........37%........18%............20%
Campbell Soup...........81%........61%............20%
Ally Financial............49%........26%............23%
Diamond Offshore......57%........15%............42%
KLA Tencor...............68%.........47%............21%
Apollo Group...........123%........50%............72%
Sandisk.....................87%........15%............73%
In reviewing the above two charts, the clear patriotic poster child is SanDisk, followed by KLA Tencor, Applied Materials, Monsanto, Starbucks, and Biogen IDEC.
On the other hand, it appears that the overwhelming majority of the above US Multinational Corps, have taken very wide advantage of the tax benefits of shifting income out of the US. Topping the list here are AES, Tyco Intl, Ingersoll-Rand, Estee Lauder, AON, Noble Energy, Cummins, Eaton, Baxter, TE Connectivity, Omnicom Group, Covidien, and Yum Brands.....but there are many more.
In this post, I will summarize similar key financial information related to the 110 fifth largest US Corps, with Worldwide Pretax Income between $1 bil and $2 bil each in the most recent year.
Here is the detailed information for these 110 fifth most profitable group of US Corps:
................................................................US........Effective
.............................................................Current........US
.............................................................Federal.... Federal
............................................................Income......Income
.............................................World.........Tax...........Tax
..............................................Wide.........Paid..........Rate
...............................................PTI........(Benefit)......Paid
..............................................(mils of dollars)
Multinational Corps
Carnival.............................1,979.............0...........0.0%
Praxair.................................1,964...........133............6.8%
Covidien...............................1,926...........308..........16.0%
Micron Technology.........1,920..........(66)........(3.4)%
Baxter................................1,890............73...........3.9%
Johnson Controls.................1,763...........112............6.4%
Kellogg.................................1,742............97............5.6%
Stryker.................................1,730...........308..........17.8%
Becton Dickinson..................1,661...........307..........18.5%
Anadarko Petroleum............1,641...........305..........18.6%
Cummins..........................1,617..............11...........0.7%
Yum Brands.........................1,594...........155...........9.7%
TE Connectivity...................1,558...........342..........22.0%
LyondellBasell.................1,512............43...........2.8%
Spectra Energy....................1,506...........105...........7.0%
Amazon.com(1)...................1,497...........311..........20.8%
Monsanto............................1,494...........260..........17.4%
Sandisk................................1,457...........269..........18.5%
Parker Hannifin...................1,414...........121............8.6%
Murphy Oil..........................1,414...........105............7.4%
Air Products&Chems...........1,394...........101............7.2%
Applied Materials................1,387...........463..........33.4%
HJ Heinz...........................1,374............39...........2.8%
Staples................................1,357...........142..........10.5%
Omnicom Group.................1,350...........107...........7.9%
McGraw-Hill.......................1,339...........246..........18.4%
Forest Labs.........................1,338...........162..........12.1%
Diamond Offshore...............1,336...........184..........13.8%
Coach.................................1,301...........345..........26.5%
Transocean(2)....................1,299...........456..........35.1%
Cliff's Natural Resources.....1,298...........108............8.3%
PPG Industries....................1,295............62............4.8%
Baker Hughes......................1,282...........179..........14.0%
Tyco International........1,270............45...........3.5%
Biogen IDEC........................1,230...........358..........29.1%
St Jude Medical..................1,209...........264..........21.8%
CA......................................1,209...........110...........9.1%
Ally Financial.................1,179.............12...........1.0%
Campbell Soup...................1,168...........215..........18.4%
Thermo Fisher Scientific....1,165...........257..........22.1%
Boston Scientific(4).......1,161...........(83).........(7.1)%
Western Union...................1,145...........104...........9.1%
Peabody Energy.................1,113...........114..........10.2%
KLA Tencor.......................1,110...........225..........20.3%
Broadcom.......................1,097............(4).........(0.4)%
Yahoo..............................1,070............26...........2.4%
AON.................................1,059.............16...........1.5%
AES..................................1,044............(8).........(0.8)%
TRW Automotive..........1,041.............0...........0.0%
Eaton..............................1,036............(2).........(0.2)%
Noble Energy.................1,031............25...........2.4%
Estee Lauder....................1,026...........127..........12.4%
Celgene.............................1,013...........185..........18.3%
Ingersoll-Rand(1).........1,007............29...........2.9%
Lubrizol............................1,004............97............9.7%
Total 54 Multi-nationals.75,016.........8,005.........10.7%
Predominantly Domestic Corps
GAP..................................1,982...........476..........24.0%
ADP..................................1,933...........449..........23.2%
Express Scripts.................1,909...........546..........28.6%
Cigna................................1,870...........267..........14.3%
Sysco(3)...........................1,827...........570..........31.2%
Kohls................................1,782...........562..........31.5%
Humana............................1,750...........786..........44.9%
Kroger..............................1,734...........697..........40.2%
CME Group.......................1,722...........602..........35.0%
McKesson.........................1,635...........283..........17.3%
Lorrilard..........................1,635...........489..........29.9%
Waste Management..........1,631...........354..........21.7%
Progressive Corp..............1,565...........434..........27.7%
DISH Network..................1,542...........288..........18.7%
CenturyLink.....................1,532...........384..........25.1%
Cardinal Health................1,518...........388..........25.6%
Valero Energy..............1,498...........(75).........(5.0)%
Precision Castparts..........1,494...........341..........22.8%
L-3 Communications........1,484...........302..........20.4%
Starbucks.........................1,437...........458..........31.9%
Unum Group....................1,331...........247..........18.6%
Macy's.............................1,320...........217..........16.4%
El Paso Corp..................1,310.............(4).........(0.3)%
Bed Bath & Beyond...........1,293...........427..........33.0%
Discover Fincl Services....1,269...........321..........25.3%
Limited Brands................1,251...........406..........32.5%
Lincoln National.........1,234.........(244).......(19.8)%
ConAgra Foods................1,225...........157..........12.8%
CBS..................................1,222.............89...........7.3%
Oshkosh...........................1,212...........463..........38.2%
Tyson Foods(3)................1,203...........374..........31.1%
Quest Diagnostics.............1,184...........347..........29.3%
Autozone.........................1,161...........397..........34.2%
Liberty Media..................1,158...........323..........27.9%
Allstate............................1,126...........133..........11.8%
CNA Financial...............1,112...............6...........0.5%
M&T Bank.........................1,093...........250..........22.9%
SLM..................................1,090..........252...........23.1%
T Rowe Price....................1,070...........266..........24.9%
AmerisourceBergen.........1,028...........269..........26.2%
Santander Holdings USA..1,019...........287..........28.2%
Apollo Group...................1,001...........458..........45.8%
Total 42 Domestics........59,392.......14,042.........23.6%
Partnerships & REIT
Enterprise Prodts Prtnrs..1,410.............2...........0.1%
KinderMorganEgyPrtnrs..1,362.............5...........0.4%
Annaly Capital Mgt..........1,300.............0...........0.0%
Total 3 Prtnrships&REIT.4,072.............7...........0.2%
Total Utilities
Entergy...........................1,888...........145...........7.7%
American Electric Power.1,849..........(134).........(7.2)%
PG&E...............................1,660...........(12).........(0.7)%
Edison Intl......................1,657..........(432).......(26.1)%
MidAmerican Energy......1,465..........(822).......(56.1)%
Progress Energy..............1,406...........(46).........(3.3)%
Consolidated Edison........1,399..........(144).......(10.3)%
FirstEnergy.....................1,242...........(23)..........(1.9)%
PPL.................................1,239...........(51)..........(4.1)%
Xcel Energy.....................1,189............17.............1.4%
Total 10 Utilities...........14,994........(1,502)......(10.0)%
Total all 110 Corps......153,474........20,552.........13.4%
(1) Amazon.com and Ingersoll-Rand above US Federal Income Tax Paid also include US State Income Tax Paid.
(2) Transocean above US Federal Income Tax Paid also includes all other global income tax paid.
(3) Sysco and Tyson Food's above US Federal Income Tax Paid also include US Deferred Income Tax Expense.
(4) Boston Scientific PTI excludes large Goodwill Impairment Charge.
When I combine these 110 US Big Corps with all the other 138 larger US Big Corps, I get Total US Federal Income Tax Paid of $100.5 bil in the most recent year, as compared with Total Pretax Income of $1,059.4 bil, or an effective US Federal Income Tax Rate Paid of an extremely modest 9.5%.....no wonder the country is suffering from such steep annual deficits.
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%
41 Corps with Pretax Income between $2 and $3 bil.........10.4%
110 Corps with Pretax Income between $1 bil and $2 bil..13.4%
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, and even the larger predominantly domestic 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.
When I get some time, I'll next be researching the effective US Federal Income Tax Rates Paid, and the other salient tax information, of the many US Corps in the somewhat smaller Pretax Income range between $.5 bil and $1 bil in the most recent year. It should be interesting.
Let me move to the US Multinational Corps included in this group of US Corps.
Below here shows the Income Tax paid by the 53 US Multinational Corps to the US Government and to Foreign Governments in the most recent year, where the information was available.
.............................US...........................Foreign
...........................Current......Foreign...Current
.............................Fed..........Current.......Inc
.............................Inc.............Inc...........Tax
.............................Tax............Tax.........Paid
............................Paid............Paid......(Benefit)
..........................(Benefit).....(Benefit).....Mix
...........................(mils of dollars)
Boston Scientific.....(83)..........125........298%
Micron Technology.(66)...........24........157%
Broadcom.................(4)...........21........124%
Eaton........................(2)..........107........102%
AES..........................(8)..........699........101%
TRW Automotive.......0...........108........100%
Ally Financial...........12...........474.........98%
Cummins..................11...........410.........97%
AON.........................16...........202.........93%
Noble Energy...........25...........208.........89%
Tyco Intl..................45...........194.........81%
HJ Heinz...................39...........161.........81%
Baxter......................73...........297.........80%
Ingersoll-Rand.........29...........115.........80%
Praxair...................133...........484.........78%
Murphy Oil.............105...........348.........77%
PPG Industries..........62...........170.........73%
Baker Hughes..........179...........472.........73%
Yum Brands............155...........356.........70%
Omnicom Group.....107...........233.........69%
LyondellBasell..........43............90.........68%
Anadarko Petro......305...........628.........67%
Estee Lauder...........127...........220.........63%
Yahoo........................26............43.........62%
Parker Hannifin........121...........193.........61%
Cliffs Natural Res......108...........166.........61%
Air Products&Chem..101...........140.........58%
Lubrizol.....................97...........131.........57%
Kellogg......................97...........129.........57%
Johnson Controls.....112...........141.........56%
Diamond Offshore.....184...........203.........52%
CA............................110............88.........44%
Stryker.....................308...........231.........43%
Staples.....................142...........103.........42%
Western Union.........104............73.........41%
Peabody Energy.......114............71.........38%
Covidien...................308...........181.........37%
Becton Dickinson......307...........170.........36%
McGraw-Hill.............246...........128.........34%
Monsanto.................260...........129.........33%
Thermo Fisher Sci.....257...........104.........29%
Campbell Soup..........215............78.........27%
Spectra Energy.........105............38.........27%
Forest Labs..............162............57.........26%
Applied Materials.....463...........134.........22%
Celgene....................185............42.........19%
St Jude Medical........264............57.........18%
TE Connectivity........342............71.........17%
Sandisk.....................269............40.........13%
KLA Tencor...............225............31.........12%
Biogen IDEC..............358............35..........9%
Amazon.com.............311............12..........4%
Coach.......................345............(3)........(1)%
Total all 53 Corps..7,549........9,162........55%
Yeah, that's right, these 53 US Corps paid 55% of their combined Worldwide Federal Income Taxes to Foreign Countries. Another way of saying this is that these 53 US Corps paid 21% more to Foreign Governments in income taxes than they did to the US Government. That's good for helping out the finances of Foreign Governments, not so good for aiding the US Government in dealing with its massive debt.
Focusing now 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 28 of them, whose US Federal Income Tax Paid Mix (i.e. US as a % of Worldwide) is substantially lower than their US Pretax Income Mix:
...................................US..................................US
.................................Current............................Tax
...................................Fed...............................Paid
...................................Inc............US.................vs
...................................Tax............PTI............Income
...................................Mix...........Mix............Spread
PPL..........................(165)%.........79%...........(244)%
Valero Energy..........(142)%.........96%...........(238)%
Micron Technology..(157)%.........72%...........(229)%
El Paso Corp..............(57)%.........94%...........(151)%
Ally Financial...............2%..........49%............(47)%
Broadcom..................(24)%.........21%............(44)%
Yahoo.........................38%..........81%............(44)%
TRW Automotive.........0%..........37%............(37)%
CBS............................60%..........88%............(28)%
Apollo Group...........100%.........123%............(23)%
HJ Heinz....................20%..........41%............(22)%
Anadarko Petroleum...33%..........52%............(19)%
Monsanto..................67%..........83%............(16)%
Baker Hughes.............27%..........42%............(14)%
McGraw-Hill..............66%..........79%............(14)%
Eaton.........................(2)%..........11%............(13)%
Cummins.....................3%..........15%............(12)%
Noble Energy..............11%..........23%............(12)%
PPG Industries............27%..........39%............(12)%
Praxair.......................22%..........33%............(11)%
Omnicom Group.........31%..........42%............(11)%
Parker Hannifin...........39%..........48%............(10)%
Diamond Offshore........48%..........57%.............(9)%
Campbell Soup............73%..........81%.............(7)%
GAP...........................78%..........85%.............(7)%
Staples.......................58%..........65%.............(7)%
Cliff's Natural Res......39%..........46%.............(7)%
CA.............................56%..........62%.............(7)%
And below here are the 59 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
AES....................(129)%........16%........(144)%
Forest Labs...........25%.........98%.........(73)%
Tyco Intl.............(19)%........49%.........(67)%
Ingersoll-Rand......(4)%........62%.........(66)%
Estee Lauder.......(16)%........38%.........(53)%
Eaton....................11%.........56%.........(45)%
Noble Energy........23%.........65%.........(42)%
AON.......................2%.........40%.........(38)%
Celgene.................23%.........60%.........(37)%
Stryker.................33%.........65%.........(33)%
Baxter..................10%..........41%.........(31)%
Anadarko Petro.....52%.........81%.........(29)%
TE Connectivity......2%.........27%.........(26)%
Cummins..............15%.........36%.........(21)%
McKesson.............71%.........91%.........(20)%
Ally Financial.......49%.........67%.........(18)%
Omnicom Group....42%.........59%.........(17)%
Western Union......13%.........29%.........(16)%
Yum Brands..........22%.........36%.........(15)%
Peabody Energy...48%.........62%.........(13)%
Cardinal Health.....86%.........98%.........(13)%
AirProdcts&Chem.33%.........46%.........(12)%
PPL......................79%.........91%.........(12)%
Parker Hannifin....48%.........58%.........(10)%
Praxair.................33%.........39%..........(7)%
St Jude Medical....46%.........51%..........(6)%
CA........................62%.........67%..........(5)%
Murphy Oil...........15%.........18%..........(3)%
PPG Industries.....39%.........42%..........(3)%
L-3 Communicat...85%.........88%..........(3)%
Covidien...............52%.........55%..........(3)%
Staples..................65%.........67%..........(2)%
Waste Managemnt.93%.........94%..........(1)%
Baker Hughes.......42%.........42%............0%
Johnson Controls.38%.........38%............0%
ThermoFisher Sci.68%.........67%............0%
CBS......................88%.........85%............2%
HJ Heinz..............41%.........37%............4%
Cliffs Natural Res.46%.........42%............4%
Amazon.com.......59%.........55%............4%
GAP....................85%.........80%............5%
Coach.................76%.........70%............6%
Precision Cstprts.89%.........83%............6%
ADP....................87%.........80%............6%
McGraw-Hill.......79%.........71%............9%
BectonDickinson.54%.........45%............9%
Kellogg...............73%.........63%...........10%
Campbell Soup....81%.........69%...........12%
Starbucks............91%.........78%...........13%
Valero Energy.....96%.........82%...........14%
Yahoo.................81%.........67%...........14%
Lubrizol..............47%.........33%...........14%
TRWAutomotive.37%.........22%...........15%
Biogen IDEC........69%.........50%...........19%
Monsanto...........83%.........57%...........25%
Spectra Energy...60%.........34%...........26%
Apollo Group....123%.........94%...........29%
DiamondOffshre.57%.........19%...........37%
AppliedMaterial.57%..........12%..........45%
KLA Tencor........68%..........19%...........49%
MicronTechnlgy.72%..........17%..........55%
Sandisk..............87%..........17%..........71%
And below here are the 62 of these fifth group of 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
AES............................(129)%........25%........(154)%
Tyco Intl......................(19)%........69%.........(87)%
Ingersoll-Rand...............(4)%........78%.........(83)%
Estee Lauder.................(16)%........59%.........(75)%
Western Union................13%.........81%.........(68)%
AON.................................2%.........65%.........(63)%
Broadcom.......................21%........72%..........(51)%
Noble Energy.................23%........68%..........(46)%
Cummins........................15%........60%..........(45)%
Celgene..........................23%........67%..........(44)%
Anadarko Petroleum.....52%........90%..........(38)%
Eaton............................11%........44%..........(33)%
Stryker..........................33%........64%..........(31)%
Baxter...........................10%........39%..........(29)%
St Jude Medical.............46%........73%..........(27)%
TE Connectivity..............2%........29%..........(27)%
Omnicom Group............42%........69%..........(26)%
Covidien.......................52%........76%..........(23)%
Amazon.com.................59%........81%..........(22)%
Yum Brands..................22%........42%..........(21)%
McKesson.....................71%........91%..........(20)%
CliffsNaturalResources..46%........63%..........(17)%
Murphy Oil...................15%........31%..........(16)%
Applied Materials.........57%........72%..........(15)%
Lubrizol.......................47%........61%..........(14)%
CBS...............................88%........96%...........(9)%
PPG Industries..............39%........47%...........(9)%
Yahoo..........................81%........89%...........(8)%
Cardinal Health.............86%........92%...........(7)%
Baker Hughes................42%........48%...........(6)%
PPL...............................79%........84%...........(5)%
Praxair.........................33%........36%...........(3)%
Coach...........................76%........79%...........(3)%
Forest Labs..................25%........28%...........(3)%
Peabody Energy...........48%........50%...........(2)%
Becton Dickinson.........54%........55%...........(2)%
Air Products&Chems....33%........35%...........(1)%
Johnson Controls.........38%........38%...........(1)%
Parker Hannifin............48%........48%.............0%
ADP.............................87%........86%.............1%
McGraw-Hill................79%........77%.............2%
Waste Management......93%........89%.............4%
GAP.............................85%........80%.............6%
Precision Castparts......89%........83%.............7%
HJ Heinz.....................41%........33%.............8%
Biogen IDEC................69%........60%.............9%
Kellogg.......................73%........64%.............9%
Valero Energy.............96%........86%............10%
Thermo Fisher Sci......68%........56%............12%
Micron Technology....72%........59%............13%
Monsanto...................83%........70%............13%
Staples.......................65%........51%............14%
Starbucks...................91%........77%............14%
CA..............................62%........48%............14%
Spectra Energy..........60%........42%............18%
TRW Automotive........37%........18%............20%
Campbell Soup...........81%........61%............20%
Ally Financial............49%........26%............23%
Diamond Offshore......57%........15%............42%
KLA Tencor...............68%.........47%............21%
Apollo Group...........123%........50%............72%
Sandisk.....................87%........15%............73%
In reviewing the above two charts, the clear patriotic poster child is SanDisk, followed by KLA Tencor, Applied Materials, Monsanto, Starbucks, and Biogen IDEC.
On the other hand, it appears that the overwhelming majority of the above US Multinational Corps, have taken very wide advantage of the tax benefits of shifting income out of the US. Topping the list here are AES, Tyco Intl, Ingersoll-Rand, Estee Lauder, AON, Noble Energy, Cummins, Eaton, Baxter, TE Connectivity, Omnicom Group, Covidien, and Yum Brands.....but there are many more.
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