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.
