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.
