In this final summary post of 4Q 2011 Earnings of US Big Corps, I found 162 US Big Corps, with Pretax Income of more than $500 mil each in any quarter of the most recent two years, which have released their December 2011 quarterly earnings. The only US Big Corps making this earnings threshold that I have excluded below are Fannie Mae and Freddie Mac, which I will later be making separate posts on.
I've included with these 162 several foreign-owned Corps, like Royal Dutch Shell and BP, because they have such massive operations in the US.
I decided to use a $500 mil quarterly Pretax Income cutoff for US Big Corps in order to obtain a reasonably high sample to be able to have a good underlying basis to make logical conclusions.
My definition of Core Pretax Income is not nearly as liberal as that of many US Big Corps. I start with Pretax Income under US Generally Accepted Accounting Principles, and exclude just a handful of large unusual items relative to Pretax Income, including:
.....Asset Impairments, mainly related to Goodwill and other Intangible Assets
.....Loss and Gains on Early Extinguishment of Debt
.....Acquired In Process Research & Development Charges
.....Gains and Losses on Sales of Assets and Businesses
.....Special Huge Litigation Charges
Here is the Total Core Pretax Income (PTI) of these 162 US Big Corps for Annual Fiscal Year Ended (FYE) 2010, as well as for each 2011 quarter, along with the related prior year amounts, as well as the Total Increased Amount and the Total Percentage Increase over the prior year or over the prior year's quarter:
.................................................................................Increase....
....................Period......PTI.........Period.....PTI......Amount.....%
...............................mils of $s....................mil of $s.....
Annual FYE..2010...881,175......2009...555,167..326,008..59%
Calendar 1Q..2011...267,535......2010...210,645.....56,890..27%
Calendar 2Q..2011...282,118......2010...226,530.....55,588..25%
Calendar 3Q..2011...275,789.....2010...224,970....50,819..23%
Calendar 4Q..2011...251,804......2010...225,557....26,247..12%
Given Apple's incredibly large and very robust earnings growth, particularly in the 4Q 2011, coupled with the fact that 70% of Apple's most recent fiscal year ended earnings were generated overseas, let me also show below the above total numbers for the remaining 161 US Big Corps, with Apple backed out.
.................................................................................Increase....
....................Period......PTI.........Period.....PTI......Amount.....%
...............................mils of $s....................mil of $s.....
Annual FYE..2010...862,635.....2009...543,101...319,534..59%
Calendar 1Q..2011...259,635......2010...206,616....53,019..26%
Calendar 2Q..2011...272,567.....2010...222,238....50,329..23%
Calendar 3Q..2011...266,998.....2010...219,509....47,489..22%
Calendar 4Q..2011...234,327.....2010...217,594....16,733.....8%
When you review the above income trend numbers, how in the world can nearly half of the country objectively assert that the Obama Administration hasn't helped the US economy immensely in all of 2010 and in all of 2011. And when I review the 2009 quarterly income statement numbers of these US Big Corps, the clear conclusion is that the huge upturn in the Total Pretax Income of these US Big Corps started in the 4Q 2009, when the Obama economic stimulus really started kicking into gear.
The stock market has this all figured out. After all, the Dow Industrials Index has nearly doubled in the past three years.
Earnings drive stock prices. And the Earnings Per Share growth of these 162 US Big Corps for 2010 and 2011 is even substantially higher than the above very robust Pretax Income increases for two reasons.
First, these US Big Corps are generating after-tax Net Income growth that far exceeds their Pretax Income growth, due to their continually increasing the portion of their worldwide income generated in low-taxed foreign tax havens, due also to their receiving more and more tax subsidies each year, and as it can be easily seen by reviewing their income tax footnotes, due also to their continually obtaining extremely favorable settlements with the IRS in their income tax audits.
And second, these US Big Corps are taking advantage of the extremely cheap interest rate environment provided by the US Government to take massive advantage of stock buyback programs, which substantially increase their Earnings Per Share.
But this earnings trend isn't just applicable to these 162 US Big Corps that have reported their December 2011 quarterly earnings.
There were another 33 US Big Corps, with October or November 2011 quarter ends, which generated Pretax Income above $500 mil in any quarter of 2011 or 2010. Here is the Total Core Pretax Income (PTI) of these 33 US Big Corps for each 2011 quarter, along with the related prior year amounts, as well as the Total Increased Amount and the Total Percentage Increase over the prior year's quarter:
.................................................................................Increase....
....................Period......PTI.........Period.....PTI......Amount.....%
...............................mils of $s....................mil of $s.....
Calendar 1Q..2011.....35,314......2010.....29,593......5,721...19%
Calendar 2Q..2011.....34,316......2010.....30,258......4,058...13%
Calendar 3Q..2011.....30,618.....2010......28,102......2,516....9%
Calendar 4Q..2011.....27,250.....2010.....27,124..........126...0%
Thus, when you combine the above 162 US Big Corps with December 2011 quarter ends with the above 33 with October or December 2011 quarter ends, below here are the results of these 195:
.................................................................................Increase....
....................Period......PTI.........Period.....PTI......Amount.....%
...............................mils of $s....................mil of $s.....
Calendar 1Q..2011...302,849......2010...240,238....62,611..26%
Calendar 2Q..2011...316,434......2010...256,788....59,646..23%
Calendar 3Q..2011...306,407.....2010...253,072...53,335..21%
Calendar 4Q..2011...279,054.....2010...252,681....26,373..10%
And when you back out Apple, here are the combined results of the remaining above 194 US Big Corps:
.................................................................................Increase....
....................Period......PTI.........Period.....PTI......Amount.....%
...............................mils of $s....................mil of $s.....
Calendar 1Q..2011...294,949......2010...236,209....58,740..25%
Calendar 2Q..2011...306,883......2010...252,496....54,387..22%
Calendar 3Q..2011...297,616......2010...247,611...50,005..20%
Calendar 4Q..2011...261,577......2010...244,718....16,859....7%
It is clear that the country must focus like a laser on the reasons for this massive dismal earnings growth deceleration from the 3Q 2011 to the 4Q 2011, in order to take steps to reverse this horrible trend.
And the reason this focus is even more critical is that this major drop in earnings growth in the 4Q 2011 occurred despite a just revised, more robust 3.0% real US GDP growth rate in the 4Q 2011, which was much higher than that of the first three quarters of 2011, and also occurred despite the fact that there was a substantial pulling forward of US equipment purchases by so many US Corps from 2012 to the 4Q 2011, and particularly to the month of December 2011, due to the huge drop in 100% first-year tax expensing on US equipment purchases in 2011 to only 50% bonus tax depreciation in 2012.
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 4Q 2011.
Let me give my thoughts on the main reasons for this massive earnings growth drop in the 4Q 2011.
First, and clearly foremost, this significant US earnings growth deceleration stems from irresponsible US Congressional Actions and Inaction, which resulted in the substantial loss in US consumer confidence and the substantial increase in US business uncertainty.
This was the direct result of Republicans in the US Congress irresponsibly breaking off the critical Grand Bargain Talks on huge long-term US deficit reduction with the Obama Administration, coupled with the horrific Debt Ceiling Negotiations, which even resulted in the highly embarrassing US Debt Downgrade by Standard and Poors. And then all US Republicans on the US Debt Super-Committee recalcitrantly refused to budge on any meaningful amount of increased Tax Revenues, thereby resulting in the disgraceful demise of this Super-Committee.
Further, the Republican Congress wreaked havoc on both the US economy and US job creation by recalcitrantly and unpatriotically rejecting on arrival the American Jobs Act, which had some awfully powerful US job creation initiatives, particularly the substantial US infrastructure investments.
I can't believe that the bulk of the US Big Corps are buying into the Republican Congress strategy to stop the US economic recovery. They want, for the most part, Obama to be removed from office, but more importantly, they don't want to see a massive deceleration of their earnings growth. They consider that to be just too high of a cost for them.
Second, and nearly as important as the irresponsible actions and inaction by the Republicans in the US Congress, relates to the key business tax incentive for US equipment purchases.
The very highly-charged 100% tax expensing for US equipment purchases was applicable to every quarter of 2011 and also to the entire 4Q 2010. However, it wasn't applicable to the first two quarters of 2010 nor to the majority of the third quarter of 2010.
Companies that sell equipment have their sales, gross margins, and earnings increase significantly. In addition, this 100% first-year tax expensing highly motivates the purchaser to purchase the US equipment when the 100% first-year tax expensing is in effect.
Thus, in the quarters that 100% first-year expensing is in effect, these US companies selling a lot of this equipment in the US will have their Pretax Income increase dramatically in that quarter.
There was the same 100% first-year tax expensing in the 4Q 2011 and in the 4Q 2010. However, in the first three quarters of 2011, the 100% tax expensing was double the 50% bonus tax depreciation in the first three quarters of 2010. Thus, it only makes economic sense that CFOs and CEOs would decide to purchase this US equipment in the quarters that 100% first-year tax expensing would apply.
Therefore, it also only makes sense that the Pretax Income growth would be substantially higher in the first three quarters of 2011, where 100% tax expensing was in effect, as compared to the comparable first three quarters of 2010, where the much less enticing 50% bonus tax depreciation applied.
So what does this mean? Well, very bad news for 2012 US equipment purchases.
Thus, it would be very wise for the US Congress to legislate to step up the 50% bonus tax depreciation to 100% first-year tax expensing for all of 2012. If not, I think you'll see real US real GDP growth drop markedly in 2012. Likewise, you'll see Pretax Earnings growth drop dramatically in 2012.
Also, I would make this 100% first-year tax expensing incentive substantially more robust in 2012.
How?
Well, I would also give some very substantial first-year tax depreciation deductions for investments in new buildings and in building improvements (especially green building retrofits) for US businesses of all sizes. And I would also step up first-year tax writeoffs for all Research and Development investments, including all computer software costs incurred.
However, to be fair in benefiting both the 1% and the neglected 99%, I would allow these massively lucrative tax incentives to the very large US businesses only if they are accompanied by a fairly-designed minimum full-time job increase requirement. If the US Congress irresponsibly excludes this requirement like it always has in the past, you will see the majority of large US Corps reap billions of dollars of upfront tax benefits, but still unpatriotically refusing to hire US workers on a full-time basis, and in many cases, even continuing to shed thousands of US workers, despite still receiving all of this income tax benefit largesse.
And to minimize the CBO-scored cost of the very effective above tax incentives, I would reduce the tax depreciation allowed on the new buildings and building improvements in years two through ten. And I would also accelerate markedly the remaining tax depreciation starting in year 11.
And to help struggling US businesses, I would give businesses that can't take advantage of the 100% tax expensing on equipment purchases, the much accelerated tax depreciation deductions on buildings and building improvements, or the increased upfront tax writeoffs on R&D and computer software investments, an upfront equivalent tax credit in the first year for these investments made.
Third, and also very importantly and really a great development to both the US economy and US job creation, as well as that around the globe, there was a massive deceleration in 4Q 2011 earnings growth of the Big Oil Corps that dominate.....specifically, Exxon Mobil, Chevron, Royal Dutch Shell and BP.
Just how substantial was this 4Q 2011 earnings growth deceleration of these Big Oil Corps? Well, it was nearly a complete collapse. The neglected 99%, including small businesses, have spoken.
Here is the Total Core Pretax Income (PTI), with BP's Gulf of Mexico Spill Costs and Credits backed out, of these 4 US Big Oil Corps that dominate for Annual Fiscal Year Ended (FYE) 2010, as well as for each 2011 quarter, along with the related prior year amounts, as well as the Total Increased Amount and the Total Percentage Increase over the prior year or over the prior year's quarter:
.................................................................................Increase....
....................Period......PTI.........Period.....PTI......Amount.....%
...............................mils of $s....................mil of $s.....
Annual FYE..2010...156,468......2009....99,449....57,019...57%
Calendar 1Q..2011.....58,130......2010....39,062.....19,068...49%
Calendar 2Q..2011.....54,848......2010....38,053.....16,795...44%
Calendar 3Q..2011.....52,467......2010....34,400....18,067..53%
Calendar 4Q..2011.....45,834......2010....44,953..........881....2%
When the US Government cannot stop the continuing windfall profits of US Big Oil, due to all Republicans in the US Congress, and even a handful of Democrats, protecting the awesomely powerful Big Oil Industry, then the 99% all around the world must take it in their own hands at the gas pump and boycott, as best they can, the clearly dominating Exxon Mobil, Chevron, Shell and BP.
Here are these 195 US Big Corps and their 4Q 2011 Pretax Income as compared to that of the 4Q 2010:
..........................................4Q............4Q..........Increase
........................................2011.........2010......(Decrease)
.......................................PTI(L).......PTI(L).....Amount......%
........................................(in millions of dollars)......
Dec 11 Quarters
Apple............................17,477.......7,963........9,514.....119%
Exxon Mobil..................17,041.....15,327........1,714.......11%
Royal Dutch Shell..........11,805......11,261...........544.........5%
Chevron..........................9,965.......8,766........1,199.......14%
Microsoft........................8,239.......8,497.........(258).......-3%
IBM................................7,274.......6,956...........318.........5%
BP(1)..............................7,023........9,599......(2,576).....-27%
Wells Fargo.....................6,057.......5,165...........892.......17%
ConocoPhillips................5,833.......4,292.........1,541.......36%
JP Morgan Chase.............4,747......7,012.......(2,265).....-32%
Intel...............................4,587.......4,163...........424.......10%
GE..................................4,476.......3,540...........936.......26%
Procter & Gamble(2).......4,075.......4,090...........(15).......0%
Berkshire Hathaway(2A).3,900.......4,383..........(483).....-11%
Verizon(3)......................3,823.......3,970..........(147)......-4%
AT&T(4)..........................3,681.......4,068..........(387)....-10%
JohnsonandJohnson(5)..3,663.......3,451...........212.........6%
Google............................3,489.......3,142...........347.......11%
Bank of America(6).........3,013......(1,595).......4,608.....289%
Phillip Morris.................2,749........2,527..........222.........9%
Pfizer(7).........................2,730.......2,136...........594.......28%
Occidental Petroleum.....2,590.......1,810...........780.......43%
Comcast.........................2,386.......1,706.............680.....40%
Abbott Labs(8)...............2,354.......2,006...........348.......17%
Walt Disney....................2,241........2,064...........177.........9%
Coca Cola(9)...................2,089........1,843...........246........13%
PepsiCo...........................1,999.......1,872...........127.........7%
McDonalds......................1,984.......1,734...........250.......14%
Caterpillar......................1,978.......1,232............746.......61%
Apache...........................1,941.......1,268............673.......53%
UnitedHealth..................1,935.......1,684............251.......15%
UnitedParcelService(10).1,889......1,730............159.........9%
Schlumberger.................1,886.......1,335............551.......41%
US Bancorp.....................1,855.......1,271............584.......46%
AIG(10A)........................1,846.....(3,153)........4,999......159%
United Technologies.......1,832.......1,686............146.........9%
Merck(11).......................1,824.......1,524............300.......20%
CVS Caremark................1,810.......1,625............185........11%
American Express..........1,748.......1,477...........271.......18%
Qualcomm.....................1,721.......1,470............251.......17%
Visa...............................1,617.......1,382............235........17%
Bristol Myers Squibb......1,594.......1,413............181........13%
Union Pacific.................1,530.......1,180............350.......30%
Boeing...........................1,444.......1,003............441.......44%
News Corp(12)..............1,375......1,033............342........33%
Citigroup.......................1,364.......1,060............304.......29%
Halliburton...................1,354..........910............444........49%
Time Warner(13)...........1,348.......1,187............161........14%
3M................................1,329.......1,262..............67.........5%
Morgan Stanley(14).......1,285.......1,191..............94.........8%
Freeport McMoran(15)..1,253.......2,986........(1,733).....-58%
Goldman Sachs..............1,247.......3,474........(2,227)....-64%
Marathon Oil.................1,218...........841...........377.......45%
Altria Group..................1,183.......1,407..........(224).....-16%
Honeywell(16)...............1,145..........930...........215.......23%
Anadarko Petrol(17).....1,054..........289...........765......265%
Ford(18)........................1,052.......1,173..........(121).....-10%
Allstate.........................1,052..........363...........689......190%
Amgen(19)....................1,051.......1,117............(66)......-6%
EMC..............................1,048..........909...........139.......15%
Newmont Mining(19A).1,036........1,112.............(76)......-7%
General Dynamics(20)..1,022.......1,043.............(21)......-2%
Eli Lilly.........................1,042.......1,410..........(368).....-26%
GM(20A).........................993..........830...........163.......20%
Lockheed Martin.............966.......1,056............(90)......-9%
Bank of NY Mellon...........945..........834............111.......13%
Kraft Foods.....................934..........712............222.......31%
MetLife(20B)..................930........1,523..........(593).....-39%
Viacom...........................917..........960............(43)......-4%
Colgate Palmolive...........908..........889.............19.........2%
Ace Ltd...........................872.......1,134..........(262).....-23%
Southern Copper.............851..........806.............45.........6%
Natl Oilwell Varco...........843..........623...........220.......35%
PNC Financial(21)...........838..........961..........(123).....-13%
AFLAC............................834..........667...........167.......25%
Raytheon(22)..................821..........715...........106.......15%
Gilead Sciences...............819..........800.............19.........2%
BlackRock.......................815..........958..........(143).....-15%
CF Industries..................797..........385...........412.....107%
SLM................................795..........760.............35.........5%
Devon Energy.................794..........668............126.......19%
DirecTV..........................794..........724............70.......10%
Prudential Financial.......788..........179............609.....340%
HCA(23).........................787..........564...........223........40%
Baker Hughes(24)............784..........520...........264.......51%
Northrop Grumman(25)..782..........639...........143.......22%
Travelers........................778........1,197.........(419)....-35%
Ebay...............................771..........587...........184.......31%
MasterCard(26)..............758..........582...........176.......30%
Danaher..........................742..........566...........176.......31%
Enterprise Products LP...727..........295...........432.....146%
Norfolk Southern............723..........562...........161.......29%
CSX.................................712..........701.............11........2%
Cummins........................705..........530...........175.......33%
Toyota Motor Credit.......698.......1,013...........(315)......-31%
Franklin Resources.........695..........698.............(3).........0%
AES(26A).......................689..........512............177........35%
Corning(27)....................682..........804..........(122).....-15%
Time Warner Cable(28)...678..........593.............85........14%
Medco Health Solutions..674.........607.............67........11%
Chubb.............................614..........699............(85).....-12%
Aetna.............................607..........313............294.......94%
Illinois Tool Works..........601..........441............160........36%
Publix Super Markets......600..........517.............83.........16%
Covidien Ltd...................593...........515.............78........15%
Estee Lauder...................591...........502.............89........18%
Las Vegas Sands..............584...........414...........170........41%
Praxair............................580..........477...........103........22%
Starbucks........................571...........508.............63........12%
Capital One Financial.......571.......1,032..........(461)......-45%
Seagate Technology........558...........175...........383.......219%
Emerson Electric(29)......553...........713..........(160)......-22%
Johnson Controls............549...........498..............51........10%
Facebook(30)..................548...........437............111........25%
Baxter.............................548...........467.............81........17%
Kimberly Clark................544...........640............(96)......-15%
State Street.....................532...........252............280......111%
AutomaticDataProc(31)..514...........485..............29..........6%
Reynolds American(32)..509..........464..............45........10%
Loews.............................481...........945..........(464)......-49%
WellPoint........................478..........752..........(274)......-36%
Murphy Oil(33)...............469...........286............183........64%
Express Scripts...............464...........518............(54)......-10%
Yum Brands....................461...........386..............75........19%
ArcherDanielsMidland...460...........998..........(538).......-54%
Cigna..............................455...........545.............(90)......-17%
McKesson(34)................453...........450................3..........1%
Delta Air Lines(35).........447.............52............395......760%
Stryker(36)....................433...........503.............(70)......-14%
Spectra Energy...............425...........493.............(68)......-14%
DuPont(37).....................422..........405..............17..........4%
Fifth Third Bancorp........418...........417.................1..........0%
International Paper........416...........332..............84.........25%
Tyco Intl........................412...........653............(241)......-37%
Sysco.............................402...........410...............(8)........-2%
ChesapeakeEnergy(37A).402..........210............192.........91%
Progressive Corp............375...........427............(52)......-12%
CME Group.....................370...........427............(57)......-13%
Dow Chemical.................354...........646..........(292)......-45%
Cliff's Natural Res(37B)...353...........392............(39)......-10%
HollyFrontier.................352............29.............323.....1114%
Texas Instruments(38)...349........1,104..........(755)......-68%
Kellogg...........................341...........260.............81.........31%
Hess...............................327..........357............(30)........-8%
Humana.........................313...........174............139.........80%
Priceline.com................299...........181.............118.........65%
PPG Industries...............284...........291..............(7)........-2%
Key Corp........................276..........508...........(232)......-46%
Amazon.com..................273..........506...........(233)......-46%
LyondellBasell(39).........272..........592...........(320)......-54%
Transocean Ltd(39A)......231..........174..............57........33%
McGraw-Hill...................224..........248.............(24)......-10%
Hartford Fincl Svcs.........122..........759...........(637)......-84%
Valero Energy..................93...........334...........(241).....-72%
Activision Blizzard...........20............(63).............83.......132%
UnitedContinental.........(146).........(324)...........178........55%
Marathon Petroleum.....(180)..........361...........(541)....-150%
Tesoro...........................(191)............13...........(204)...-1569%
Alcoa............................(239)..........348...........(587).....-169%
Unum Group(40)..........(704)..........336........(1,040)....-310%
HSBC Finance Corp US..(869).........(219)..........(650)....-297%
Sprint Nextel..............(1,197)........(934)..........(263)......-28%
Total all 162.............251,804....225,557.......26,247........12%
Total all 161
...but Apple.............234,327....217,594........16,733..........8%
Oct & Nov 11 Quarters
Walmart........................5,343.......5,095...........248........5%
Oracle...........................2,960.......2,646...........314.......12%
Hewlett Packard(41).....2,310.......3,214..........(904).....-28%
Cisco Systems...............2,245.......2,425..........(180)......-7%
Home Depot..................1,457.......1,306...........151.......12%
Dell...............................1,072.......1,076.............(4).......0%
Deere............................1,057.........750...........307.......41%
Medtronic(42)..............1,053.......1,031.............22........2%
Accenture.......................993..........845...........148.......18%
Walgreens.......................883..........921...........(38)......-4%
Target.............................857..........773.............84.......11%
Mosaic............................855..........621...........234.......38%
DiscoverFinancialSvcs....818..........585...........233.......40%
FedEx.............................777..........437...........340.......78%
TJX.................................664..........597............67........11%
General Mills...................630..........741..........(111).....-15%
Nike................................618..........609...............9........1%
Costco............................553..........504..............49.......10%
CHS.................................531..........231...........300......130%
Lowes(43).......................352..........651..........(299).....-46%
Applied Materials............344..........703..........(359).....-51%
Kohls..............................340..........277.............63.......23%
Gap.................................325..........502..........(177).....-35%
Kroger............................305..........304..............1..........0%
Carnival..........................209..........255...........(46).....-18%
Best Buy..........................204..........373..........(169).....-45%
Monsanto........................204............24...........180.....750%
Macys..............................183............52...........131......252%
Limited Brands................122..........102............20.......20%
Intuit...............................(98)........(111)............13.......12%
Micron Technology(44).(189).........131..........(320)...-244%
H&R Block.....................(204).......(184)...........(20).....-11%
Sears Holding................(523)........(362).........(161).....-44%
Total all 33.................27,250.....27,124...........126........0%
Grand Total all 195...279,054....252,681......26,373.......10%
Grand Total all 194
...but Apple..............261,577....244,718......16,859........7%
(1) BP 2011 PTI excludes Gulf of Mexico Oil Spill Response Credit. Its 2010 PTI excludes Gulf of Mexico Oil Spill Response Charge.
(2) Procter & Gamble 2011 PTI excludes both Intangible Asset Impairment Charge and Gain on Sale of Business.
(2A) Berkshire Hathaway PTI in both years exclude Insurance Investment Gains and Losses, Insurance Impairment Losses, Finance Investment Gains and Losses, and Finance Derivative Gains and Losses.
(3) Verizon PTI in both years exclude Severance, Pension, and Benefit Special Charges.
(4) AT&T PTI in both years exclude Actuarial Losses on Benefit Plan. Its 2011 PTI also excludes both Charge related to T-Mobile Acquisition Termination and Directory Asset Impairment Charge.
(5) Johnson and Johnson PTI for both 2011 and 2010 exclude Special Litigation Settlement Charges, Special Product Liability Expense Charges, and DePuy Hip Recall Program Charges. Its 2011 PTI also excludes Currency Option on Planned Acquisition Charge.
(6) Bank of America PTI in both years exclude Goodwill Impairment Charges.
(7) Pfizer PTI for both 2011 and 2010 exclude Special Litigation Charges and Asset Impairment Charges.
(8) Abbott Labs PTI for both 2011 and 2010 exclude Acquired In Process Research and Development Charges.
(9) Coca Cola 2010 PTI excludes Gain on Equity Method Investment Ownership Reduction. Its 2010 PTI exclude Gain from Fair Value Remeasurement of Equity Method Investments, Gain from Sale of Bottlers, and Various Other One-Time Charges, mostly related to Acquisitions.
(10) United Parcel Service PTI in both years are before Pension Accounting Mark-to-Market Adjustments.
(10A) AIG 2011 PTI excludes large Gain on Change in Fair Value of AIA Securities. Its 2010 PTI excludes massive Gain on Sale of Properties, mostly sale of AIA.
(11) Merck PTI for both 2011 and 2010 exclude Acquired In Process Research and Development Charges.
(12) NewsCorp 2011 PTI excludes Gain from Deconsolidation of Fox Pan American Sports. Its 2010 PTI excludes Goodwill Impairment Charge.
(13) Time Warner 2011 PTI excludes Investment Losses.
(14) Morgan Stanley 2011 PTI excludes Loss related to MBIA Settlement.
(15) Freeport McMoran 2011 PTI includes Indonesian Operations Labor and Pipeline Disruption Charges.
(16) Honeywell PTI in both years are before Pension Accounting Mark-to-Market Adjustments.
(17) Anadarko Petroleum 2011 PTI excludes Asset Impairment Charge.
(18) Ford 2011 PTI excludes FordSollers Gain. Its 2010 PTI excludes Debt Reduction Charges.
(19) Amgen 2010 PTI excludes Asset Impairment Charge re BI Transaction.
(19A) Newmont Mining 2011 PTI excludes a huge Write Down of Property, Plant and Equipment and Mine Development.
(20) General Dynamics 2011 PTI excludes Intangible Asset Impairment Charge.
(20A) General Motors 2011 PTI excludes Goodwill Impairment Charge and Gain on Debt Extinguishment. Its 2010 PTI excludes Gain on Debt Extinguishment.
(20B) MetLife PTI(L) excludes Derivative Gains and Losses in both years.
(21) PNC Financial PNC Financial 2011 PTI excludes Charge from Redemption of Trust Preferred Securities. Its 2010 PTI excludes Gain on Sale of BlackRock Shares.
(22) Raytheon 2010 PTI excludes Loss on Debt Retirement.
(23) HCA 2011 PTI excludes Gain on Acquisition of Controlling Interest in Equity Investment and Gain on Sale of Facilities.
(24) Baker Hughes 2011 PTI excludes Impairment of Trade Names Charge.
(25) Northrop Grumman 2010 PTI excludes Debt Redemption Charge.
(26) MasterCard 2011 PTI excludes Special Litigation Settlement Charge.
(26A) AES PTI in both years exclude Asset Impairment Charge.
(27) Corning 2011 PTI excludes Asset Impairment Charge. Its 2010 PTI excludes both Insurance Settlement Gain and Special Korean Tax Credit.
(28) Time Warner Cable 2011 PTI excludes Asset Impairment Charges.
(29) Emerson Electric 2011 PTI includes negative impact of Thailand Floods.
(30) Facebook PTI is Pretax Income from Operations.
(31) Automatic Data Processing 2011 PTI excludes Gain on Sale of Assets.
(32) Reynolds American 2011 PTI excludes Intangible Asset Impairment Charge.
(33) Murphy Oil 2011 PTI excludes Republic of Congo Property Impairment Charge.
(34) McKesson 2011 and 2011 PTI both exclude Special Litigation Charges.
(35) Delta Air Lines PTI in both years excludes Loss on Debt Extinguishment.
(36) Stryker 2010 PTI excludes Asset Impairment Charges.
(37) DuPont 2010 PTI excludes Loss on Debt Extinguishment.
(37A) Chesapeake Energy PTI in both years exclude Gains and Losses on Sales and Impairments of Fixed Assets.
(37B) Cliffs Natural Resources 2011 PTI excludes Goodwill Impairment Charge.
(38) Texas Instruments 2010 PTI excludes Gain on Sale of Assets.
(39) LyondellBasell 2011 PTI excludes Loss on Debt Extinguishment and Berre Refinery Closure Costs.
(39B) Transocean Ltd 2011 PTI excludes Asset Impairment Charges and Macondo Well Loss Charges. Its 2010 PTI excludes Asset Impairment Charges.
(40) Unum Group 2011 includes Impairment of Deferred Acquisition Costs Charge.
(41) Hewlett Packard Hewlett Packard 2011 PTI excludes Asset Impairment Charge, Winding Down Web OS Device Business Charge, and Acquisition Foreign Currency Exchange Risk Charge.
(42) Medtronic 2010 PTI excludes Special Litigation Charge.
(43) Lowes 2011 PTI includes Store Closing Charges.
(44) Micron Technology 2010 PTI excludes both Samsung Patent Cross-license Agreement Gain and Loss on Debt Extinguishment.
