Indiana has a Republican Governor. And its Senate and its House are also both Republican controlled.
Thus, the Republicans in Indiana are using their awesome power, and trying to fast track Big Corp favored Right to Work Legislation, without a Due Process of Reasonable Discussion.
It's pretty clear that the Republicans are afraid that if Indiana citizens are properly educated on the impact of Right to Work Legislation, its many serious flaws will be unveiled.
US Citizens rightly criticize the US Congress for its lack of action. Wise Indiana Citizens should rightly criticize the Indiana Legislature and the Indiana Governor for trying to hastily pass Big Corp favored Right to Work Legislation, which is so detrimental to 99% of Indiana's Citizens.
Right to Work Legislation substantially reduces employee pay and employee benefits and transfers this employee cost reduction to the bottom-line profits of Big Corps, which further expands the gargantuan wealth gap between the 1% and the 99%.
And because this employee pay and benefits reduction is taken out of local economies all over the country, small businesses get economically pummeled by Right to Work.
Right to Work Legislation also substantially shifts jobs from decent full-time ones to the already monstrously-growing, highly-undesirable Jobette ones, which include part-time, temporary, seasonal, employee contractor, and full-time low-paying jobs, where the only thing worse than the low pay is the even lower employee benefits.
These jobettes don't pay enough to permit citizens to house and feed their families.
Isn't the wealth gap between the 1% and the 99% enough already? Just how much does the 1% want, that the clearly dominant Republicans in the Indiana State Government are even now drastically demanding this step-on-the-toes-of-the-99% Right to Work Legislation? What ever happened to the sense of decency?
Having studied extensively the key issues of fast-tracked legislation passed in the past year or so by the Republican controlled States of Florida, Wisconsin, Ohio, and Indiana, in all fairness, I think it is a complete tossup as to which of these four States has acted in the most damaging, egregious manner.
But then a case can be made that Indiana did take this egregious conduct to a completely different level, since it appears that it was the only State that used an Enron-like, Cook-the-Budget-Books strategy of ignoring massive amounts of unrecorded State Revenues to deceptively and inappropriately support drastic education and State Government employee and other cuts.
And what was the ultimate result of these ruthless cost cutting actions, severely harming the 99%? An Indiana State Rainy Day Fund headed for $2 bil, which will permit the State Republicans to assert that when Governor Mitch Daniels leaves office, he will leave a legacy behind of being a fiscal genius. What a pyrrhic victory.
And when the Indiana State Democrats demanded that an independent outside-of-the government audit be performed because of the magical appearance belatedly of all of these substantial State funds after all of these State Employees, including educators, were canned, the dominating State Republicans covered this up by instead having the Indiana Republican-controlled State audit itself on this manner.
Go Figure!
I think that if the Republicans in the Indiana State House were to attempt to maliciously and punitively impose what seems to be a clearly unconstitutional $1,000 daily fine on brave, patriotic Indiana House Democrats, who are acting in the best interests of 99% of the Indiana citizens, who will be severely harmed by Right to Work Legislation, then it is only reasonable that patriotic, compassionate, fair-minded, economic justice-seeking activists publicly expose in a lot more detail the specifics of the seemingly intentional massive low-balling of Indiana Revenues by Indiana State Republicans in order to make their deceptive and ruthless case for supporting substantial, unfair cuts in jobs and employee benefits of State Employees, including State Educators. When you have an oppressive ruling State Government trouncing on the 99%, this action is only fair.
Indiana Citizens should be outraged at this whole-scale devious conduct and governing ineptitude. The Indiana State Republicans are turning the Indiana State Government into the laughing stock of the country.
Anyway, given the very damaging economic consequences to Indiana Citizens resulting from Big Corp favored Right to Work Legislation, I think it would be wise to give a better understanding of just what has been going on with Indiana Big Corp Earnings and Indiana Big Corp Jobs.
In a very quick review of SEC filings, I found 35 Non-Utility Indiana HQed companies, filing with the SEC, with Pretax Income or Pretax Loss of at least $40 mil in any of the most recent three fiscal year ends.
First, below here is an abbreviated Legend I'll be using later below, Indiana HQ's location, Most Recent Fiscal Year End, Most Recent Fiscal Year End Worldwide Core Pretax Income(Loss), and Most Recent Fiscal Year End Worldwide Number of Employees for each of these 35 Indiana Big Corps. As I find more Indiana Corps with the requisite profit size, I'll add them to the below list.
........................................................................Most..........Most
.......................................................................Recent........Recent
.........................................................................FYE...........FYE
...........................................................Most.......WW...........WW
.............................Legend........IN.....Recent.....Core..........# of
Indiana Big Corp...Abbrev.......HQs......FYE.....PTI(L)....Employees
........................................................................mils
Cummins.................CMI....Columbus.Dec10..$1,617......39,200
Eli Lilly.................LLY............Indy.Dec10..$6,625......38,350
WellPoint.............WLP............Indy.Dec10..$4,354......37,500
Berry Plastics.........BRPL...Evansville.Sep11.......$28.......16,000
KARAuctionSrvcs...KAR........Carmel.Dec10.....$130.......12,558
Finish Line.............FINL...........Indy.Feb11......$110.......11,500
Republic Airways....RPA...........Indy.Dec10......($22).......9,850
Zimmer Holdings....ZMH......Warsaw.Dec10..$1,064.........8,800
Biomet...................BIOM.....Warsaw.May11....($124).......7,678
MeadJohnsonNutr..MJN..Evansville.Dec10.....$634........6,500
ITTEducatntlSvcs.....ESI.......Carmel.Dec10.....$614........6,300
Hill-Rom Hldngs......HRC...Batesville.Sep11.....$207........6,230
Steel Dynamics...STLD...Ft Wayne.Dec10.....$213........6,180
SpringleafFinance...SLFC.Evansville.Dec10....($253).......5,900
HHGregg.................HGG..........Indy.Mar11.......$79........5,600
Shoe Carnival.........SCVL.Evansville.Dec10.......$42........4,300
Hillenbrand...............HI...Batesville.Sep11......$158........4,200
Brightpoint............CELL..........Indy.Dec10.......$52........3,909
UCI Intl...................UCI..Evansville.Dec10.......$46........3,900
CNOFinancialGrp....CNO......Carmel.Dec10......$294........3,680
SimonProptyGrp.....SPG..........Indy.Dec10.....$793........3,500
Franklin Electric...FELE.....Bluffton.Dec10........$55........3,470
Accuride...............ACW.Evansville.Dec10.......($44).......2,927
AllisonTransmsn..ALST..........Indy.Dec10........$83........2,750
Old Natl Bancp.......ONB.Evansville.Dec10........$44........2,491
CommrclBargeLne..CBL.Jeffrsnvlle.Dec10........$12........2,432
Wabash National...WNC..Lafayette.Dec10.......($20).......1,800
Vera Bradley.........VRA..Ft Wayne.Jan11.........$52........1,427
First Merchants...FMRC.....Muncie.Dec10..........$3........1,178
1st Source Corp....SRCE.SouthBend.Dec10.......$60........1,160
Haynes Intl.........HAYN...Kokomo..Sep11........$49........1,057
DukeRealtyREIT..DUKR.........Indy.Dec10.........($1).......1,000
FirstFinanclCp.....THFF..TerreHte..Dec10........$40...........813
CalumSpecPdsLP.CLMT.........Indy.Dec10........$17...........650
Baldwin&Lyons......B&L.........Indy.Dec10........$35...........299
Total all 35...............................................$17,046....265,089
Yeah, Eli Lilly and WellPoint combined comprise 28.6% of the total Number of Jobs of these 35 US Big Indiana Corps, substantially lower than the gargantuan 64.4% they comprise of the total Profits.
The fair focus should be on the Number of Jobs, not on the amount of profit. The Indiana Republican-controlled Legislature and Executive Branch is was off target here. It shows that their focus is on the 1%, not on the 99%. And not just the 1% vs. the 99% of Indiana Citizens, but also the 1% vs. the 99% of Indiana businesses.
The Indiana Republican Controlled Executive and Legislative Branches have focused an inordinate amount of effort in financially aiding the most profitable companies. Thus, they have done absolute economic wonders for Eli Lilly and WellPoint.
Clearly, this is not right.....not even close to being right.
From an extensive review of past years of SEC annual report filings of both WellPoint and Eli Lilly, here is the Current Year State Income Tax Paid or Payable and the related Consolidated Pretax Income for each of the most recent 12 years:
................WellPoint.................................Eli Lilly
..............Current Year..........................Current Year
..............State & Local.....WellPoint...........State............ Eli Lilly
...............Income Tax...Consolidated....Income Tax...Consolidated
..............Expense Paid......Pretax........Expense Paid.......Pretax
...............or Payable........Income.........or Payable........Income
………………………….(millions of dollars)....................................
2010..............29..............4,354..................23...............6,525
2009..............87.............7,403..................49...............5,358
2008............126..............3,122.................(45).............(1,308)
2007............117.............5,258...................28...............3,877
2006............134.............4,914..................(25)..............3,418
2005............114.............3,890...................12...............2,718
2004.............27.............1,443..................(11)...............2,942
2003.............15..............1,219...................(6)...............3,262
2002.............14................808..................(13)..............3,458
2001...............8................525...................17...............3,507
2000..............4................330...................(7)...............3,859
1999.............(7)..................61...................(5)...............3,245
12 YR Total.668..........33,327...................17...............40,861
Effective State Income
…..Tax Rate Paid
.....For Past 12 Years
..........WellPoint.........2.00%...............Eli Lilly......0.04%
And the Indiana Statutory Corporate State Income Tax Rate was 8.50% when a substantial portion of these earnings were generated.....and yeah, that's as compared to WellPoint's state income tax rate paid of 2.00% and Eli Lilly's 0.04%.
And WellPoint had such an incredibly low effective state income tax rate paid of 2.00% over the past dozen years, despite the fact that 100% of WellPoint's earnings were generated in the US.
And yes, Governor Mitch Daniels was previously a key high-level executive of Eli Lilly, which paid an effective state income tax rate of 0.04% over the past dozen years.
And how does the Indiana Republican-Controlled Executive and Legislative Branches react to these meager amounts of State Income Tax paid by these two giants that control Indiana Republicans?
They just recently cut Indiana's Corporate State Income Tax Rate by 25%! I'm not kidding. And simultaneously, they substantially reduced State Unemployment Benefits in these desperate economic times. Clearly, a redistribution of the wealth between the rich and the poor, thereby further enlarging the already huge wealth gap between the 1% and the 99%.
Go Figure!
And what's with the Evansville Entrepreneurial Spirit? Seven of these 35 IN Big Corps, or 20%, are based in Evansville. That's pretty cool.
And the 8th is coming. SS&C Technologies, a Connecticut-based high tech software company for the financial industry, is moving its HQs to Evansville.
And this SS&C Technologies has an incredible track record.
Here are its Full-Time Employee Counts at the end of each of the most recent five years:
2006.......901
2007....1,059
2008....1,128
2009....1,253
2010....1,399
That's a consistently great up trend and these are aren't Jobettes, but rather good-paying jobs.
And check out its Pretax Earnings track record.
2006.....$3 mil loss
2007.....$6 mil profit
2008....$26 mil profit
2009....$29 mil profit
2010....$44 mil profit
And for the 9 months ended September 2011, SS&C's Pretax Profits are $56 mil, up 87% over 2010. Whew!
The past Mayors of Evansville must have done an excellent job in bringing businesses to, and keeping businesses in, the Evansville Area. The one main exception is Whirlpool, whose departure just devastated the middle class of the Evansville Area.
Below here is the Pretax Income (PTI) or Pretax Loss (PTL) for each of these 35 Indiana Big Corps for the two most recent fiscal year ends. I am looking forward to updating these numbers when the December 2011 earnings are released.
........................................................................................Most
.......................................................................................Recent
.....................PTI(L)............PTI(L)................PTI(L).........FYE
...................... FYE................FYE.................. FYE...........PTI(L)
...............Dec10/Nov11.Dec09/Nov10.Dec08/Nov09..% Change
.............................(millions of dollars)...................
LLY(1)..........6,625..............6,042...............5,367...........10%
WLP(2).........4,354..............3,611................3,122............21%
CMI..............1,617.................640...............1,178..........153%
ZMH(3)........1,064..............1,071................1,122.............-1%
SPG(4)............793.................652..................628............22%
MJN...............634.................587..................652..............8%
ESI.................614.................491...................327............25%
CNO...............294.................174......................4.............69%
STLD..............213..................(18).................735.........1283%
HRC(5)...........207.................163...................94............27%
HI..................158..................146..................161..............8%
KAR(6)..........130....................34..................(84).........282%
FINL..............110....................72...................51............53%
ALST(7)..........83...................(93)................(111)..........189%
HGG................79....................64...................63............23%
SRCE...............60....................32...................46............88%
FELE...............55....................39...................68............41%
VRA................52....................44...................25............18%
CELL(8)...........52....................35...................24............49%
HAYN(9).........49....................16..................(17).........206%
UCI(10)...........46....................14..................(17).........229%
ONB.................44....................(7)..................62..........729%
SCVL...............42....................25.....................8............68%
THFF...............40....................30...................33............33%
B&L.................35.....................64..................(17).........-45%
BRPL(11).........28....................(89).................(28).........131%
CLMT..............17......................62...................45..........-73%
CBL(12)...........12......................15...................75..........-20%
FMRC...............3.....................(69)..................29..........104%
DUKR(13)........(1).....................(5)...................86...........80%
WNC(14).......(20)....................(72).................(43)..........72%
RPA(15)........(22).....................46...................137........-148%
ACW(16).......(44)...................(123).................(56)..........64%
BIOM(17)....(124)...................(142)...............(369)..........13%
SLFC(18).....(253)...................(889)...............(925)..........72%
Total all 35..17,046.............12,662.............12,475..........35%
LLY(1) Eli Lilly PTI in all three years excludes both Acquired In Process R&D Charges and Asset Impairment Charges. Its 2009 and 2008 PTI also exclude Zyprexa Product Liability Charges.
WLP(2) WellPoint 2009 PTI excludes Gain on sale of business.
ZMH(3) Zimmer Holdings 2010 and 2009 PTI both exclude Goodwill Impairment Charges.
SPG(4) Simon Property Group PTI is Operating Income less Interest Expense, plus Income from Unconsolidated Entities, and is exclusive of large Impairment Charges.
HRC(5) Hill-Rom Holdings 2011 PTI excludes Special Litigation Charge. Its 2010 PTI excludes Special Litigation Credit. And its 2009 PTI excludes Intangible Asset Impairment Charge.
KAR(6) KAR Auction Services 2010 PTI excludes Loss on debt extinguishment. Its 2008 PTI excludes Intangible Asset Impairment Charge.
ALST(7) Allison Transmission 2009 and 2008 PTL both exclude Trademark Impairment Charges.
CELL(8) Brightpoint 2008 PTI excludes Goodwill Impairment Charge.
HAYN(9) Haynes Intl 2009 PTI excludes Goodwill Impairment Charge.
UCI(10) UCI Intl 2010 PTI excludes Loss on debt extinguishment.
BRPL(11) Berry Plastics 2011 PTI excludes Asset Impairment Charges and Debt Retirement Charges.
CBL(12) Commercial Barge Line 2010 PTI excludes Loss on debt retirement.
DUKR(13) Duke Realty REIT PTI is Operating Income less Interest Expense and excludes Impairment Charges.
WNC(14) Wabash National 2010 and 2009 PTL both exclude Change in Fair Value of Warrant Charges. Its 2008 PTL excludes Goodwill Impairment Charge.
RPA(15) Republic Airways 2009 PTI excludes both Goodwill Impairment Charge and Gain on Bargain Purchase.
ACW(16) Accuride 2010 PTL excludes both Gain on market value change on convertible debt and large Inducement Expenses.
BIOM(17) Biomet 2010 and 2011 PTL both exclude Goodwill Impairment Charges.
SLFC(18) Springleaf Finance 2010 PTL excludes $1.5 bil Gain on Bargain Purchase.
I find it incredible how the Indiana Big Corps were so resilient in the heart of the Deep Recession in 2009, where the Total Pretax Income of these 35 Indiana Big Corps actually increased from $12,475 mil to $12,662 mil. Not so for the majority of Big Corps in other US States, whose earnings in 2009 steeply declined.
And then these 35 Indiana Big Corp Total Earnings increased very robustly by 35% in the most recent fiscal year end.
But what was the story with the trend in the Number of Employees of these Indiana Big Corps in the most recent two years? Well, just horrible.
Of these 35 Indiana Big Corps, 3 of them didn't disclose their Number of Employees in each of the 3 most recent years. In addition, Republic Airways made a huge acquisition in 2009 and Berry Plastics made several significant acquisitions in 2009.
Thus, below here are the Worldwide Number of Employees of each of these remaining 30 Indiana Big Corps at the end of each of the most recent three fiscal years.
.........................Worldwide Number of Employees
.........................At the end of each Fiscal Year End
...........................Dec10........Dec09........Dec08
............................Thru...........Thru..........Thru
...........................Nov11........Nov10.......Nov09
CMI...................39,200.......34,900......39,800
LLY...................38,350.......40,360......40,500
WLP..................37,500.......40,500......42,900
KAR..................12,558........12,648.......14,003
FINL.................11,500........11,100.......12,300
ZMH...................8,800.........8,200.........8,500
BIOM.................7,678..........7,469.........7,107
MJN...................6,500.........5,600.........5,300
ESI....................6,300...........5,500.........4,620
HRC...................6,230..........6,350.........6,500
STLD..................6,180..........5,990.........6,650
SLFC..................5,900.........6,500.........7,900
HGG...................5,600.........4,900.........3,500
SCVL..................4,300.........4,300.........4,200
HI......................4,200.........3,850.........3,250
CELL..................3,909.........2,705.........3,032
UCI....................3,900.........4,350.........4,900
CNO....................3,680.........3,500.........3,700
SPG....................3,500.........3,300.........3,500
FELE..................3,470.........3,500.........3,500
ACW...................2,927.........2,450.........2,980
ONB....................2,491.........2,812.........2,507
WNC...................1,800.........1,600........2,800
FMRC.................1,178.........1,207.........1,367
SRCE..................1,160.........1,170.........1,280
HAYN................1,057...........980............940
DUKR.................1,000........1,000.........1,200
THFF.....................813...........830............766
CLMT....................650...........620............640
B&L.......................299...........293............312
Total all 30...232,630....228,484....240,454
Reduction in WW Number of Employees Most Recent 2 Years
.....Total...........7,823
.....Percentage.....(3)%
Yeah, that's right, while the Total Pretax Income of these Indiana Big Corps increased by 37% in the most recent 2 years, the CEOs of these above 30 Indiana Big Corps slashed a total of 7,823 Worldwide Jobs, or a 3% reduction.
But it gets even much worse, when viewed domestically.
Of these 30 Indiana Big Corps, 19 of them either disclosed their US Number of Employees or operated only in the US in the most recent 3 years.
Below here are these 19 Indiana Big Corps, and the number of US employees they had, at the end of each of the most recent 3 fiscal year ends (FYEs).
...........................US Number of Employees
....................At the end of each Fiscal Year End
......................Dec10........Dec09........Dec08...Most Recent 2 Year
.......................Thru...........Thru..........Thru......US Job Slashing
......................Nov11........Nov10.......Nov09....By "Job Creators"
WLP..............37,500.......40,500......42,900..........5,400
LLY...............17,650.......20,060......20,900..........3,250
FINL..............11,500........11,100......12,300.............800
KAR.................9,663..........9,819......11,044...........1,381
ESI..................6,300..........5,500.......4,620
STLD...............6,180...........5,990.......6,650.............470
HGG................5,600...........4,900......3,500
ZMH................4,900..........4,900.......5,200............300
SCVL...............4,300..........4,300.......4,200
CNO.................3,680..........3,500.......3,700..............20
SPG.................3,500..........3,300.......3,500
BIOM..............3,233...........3,453.......3,548..............315
ONB................2,491...........2,812.......2,507................16
WNC...............1,800...........1,600......2,800..........1,000
FMRC.............1,178...........1,207.......1,367..............189
SRCE..............1,160...........1,170.......1,280..............120
DUKR.............1,000..........1,000.......1,200.............200
THFF................813..............830..........766
CLMT...............650..............620..........640
Total all 19..123,098......126,561...132,622...........13,461
Net Reduction in US Number of Employees Most Recent 2 Years
.....Total...........9,524
.....Percentage.....(7)%
Yeah, in the most recent two years, these Indiana Big Corps slashed US jobs by 7%, while they simultaneously increased their Total Pretax Earnings by 37% and their Total After-tax Earnings Per Share (EPS) by even a much higher percentage.
To better explain the latter point, giant WellPoint's Net Income was $2,877 mil in 2010, an increase of 16% from 2008, which had a $481 mil tax benefit from extremely favorable income tax audit settlements.
So what happened to WellPoint's EPS, which is what drives its stock price and much of its executive compensation?
Would you believe that its EPS increased by a massive 46%, going from $4.76 in 2008 to $6.94 in 2010? It's true.
How could that be? Net Income up 16% and EPS up 46%? It's all about magical financial engineering, that the 1% Big Corps have over everyone else.
WellPoint reduced its average number of common shares outstanding by spending $10.3 bil in buying back its own common stock in the most recent three years (2008 to 2010). By doing this, the denominator in its EPS computation dropped dramatically, thereby increasing EPS dramatically.
And WellPoint sees absolutely nothing wrong with slashing 5,400 US Jobs in the most recent 2 years, while simultaneously increasing its EPS by 46%.
Go Figure!
Republican Presidential Candidate Mitt Romney boldly says that the 99% envy the wealth of the 1%. He's way out of touch on this key issue here. It's not about envy.....not even close to being about envy. Instead, it's all about economic fairness. And it's also all about having enough take-home pay, after paying payroll taxes, paying income withholding taxes, and paying exorbitant gas prices, to house and feed your family. The live-in-their-own-world Big Oil and Big Financial Engineers, and their 1% beneficiaries, just don't get this.
This is precisely why the Occupy Movement was so strong in the 4Q 2011, and will get substantially stronger in 2012, especially after the horrible winter weather is history.
===================================
Late Additions to Above Indiana Big Corp List:
........................................................................Most..........Most
.......................................................................Recent........Recent
.........................................................................FYE...........FYE
...........................................................Most.......WW...........WW
.............................Legend........IN.....Recent.....Core..........# of
Indiana Big Corp...Abbrev.......HQs......FYE.....PTI(L)....Employees
........................................................................mils
Remy.....................REM...Pendleton..Dec10.....$59.........5,717
Lakeland Financial.LKLF.....Warsaw...Dec10.....$37...........467
Of Remy's 5,717 employees, only 830 of them are in the US.
Lakeland Financial's Pretax Income is just short of $40 mil in 2010, but it should be there in 2011, since its earnings are up 19% in the first 9 months of 2011.
........................................................................................Most
.......................................................................................Recent
.....................PTI(L)............PTI(L)................PTI(L).........FYE
...................... FYE................FYE.................. FYE...........PTI(L)
...............Dec10/Nov11.Dec09/Nov10.Dec08/Nov09..% Change
.............................(millions of dollars)...................
REM(19)..........59..................27.......................2..............119%
LKLF...............37..................28.....................29................32%
REM(19) Remy Intl 2010 PTI excludes Loss on debt retirement.
Much More to Come!
