Included in these 82 Illinois Corps is technology/managing consulting giant Accenture, which has added many jobs worldwide in the past several years, including 500 recently in Chicago. Accenture is an Ireland Corporation, but with substantial operations in the US, especially in Chicago and New York City. More than a decade ago, Accenture was part of Chicago-based Arthur Andersen. And Accenture’s outside CPA firm is Chicago based.
Also included in these 82 Illinois Corps is CNH Global, a Netherlands Corp, with its earnings releases coming from Burr Ridge, IL, and its outside CPA firm being Chicago based.
Even though Boeing’s top executives and earnings releases are located in Chicago, I have excluded it from the 82 Illinois Corps below, and have instead included it with the Washington State Corps, where a substantial portion of its operations are based. Boeing’s Pretax Earnings have rocketed from $1,731 mil in 2009 to $5,393 mil in 2011, an off-the-charts increase of 212% in only two years. Whoa!
These 82 Illinois Corps generated Total Pretax Income in 2011 of $68.8 bil, for a very robust 32% increase over 2010, and an even more robust 105% increase over 2009.
In deriving Pretax Income, I start with Pretax Income under Generally Accepted Accounting Principles (GAAP), and then exclude several clearly unusual very large items relative to Pretax Income, such as Asset Impairments, Gains and Losses on both Debt Retirements and Asset Dispositions, and Special Litigation Charges and Gains.
Clearly, the Obama Administration has created an economic environment in the past two years that has permitted these Illinois Corporations to thrive.
And so have both the past Chicago Mayor Richard Daley and the new Chicago Mayor Rahm Emanuel been a great help to these Illinois Corps.
Likewise for current Illinois Governor Pat Quinn and many in the Illinois State Congress.
And many Illinois members of the US Congress…..Dick Durbin in the US Senate and these 8 in the US House: Jerry Costello, Danny Davis, Luis Gutierrez, Jesse Jackson, Daniel Lipinski, Bobby Rush, Mike Quiqley, and Jan Schakowsky…..have especially been a great help to these Illinois Corps.
With this off-the-charts 105% earnings growth for these Illinois Corps in the past two years, there is no way that the 32% earnings growth in 2011 will continue in 2012.
And this earnings growth has substantially stopped to a walk in the 1Q of 2012.
I think the only way these Illinois Corps’ earnings growth for the remainder of 2012 will be at least 15%, and also result in excellent job creation, is for the US Congress to immediately pass the following economic initiatives:
- Extend the 100% first-year tax expensing for equipment and computer software investments made in the remainder of 2012.
- Substantially accelerate first-year tax depreciation on all new building and building remodeling investments made in the remainder of 2012.
- Pass the Research and Experimentation Tax Credit for businesses for all 2012 expenditures, but substantially enhance it, especially for smaller businesses, and simplify it.
- Pass the substantial amount of school construction infrastructure fix ups for K-12 Schools and for Community Colleges in the American Jobs Act (AJA). And all of these school investments should occur in 2012, and mostly from now through the end of the summer of 2012.
The above first two will result in explosive US economic stimulation, particularly when viewed in light of future business income tax reform, which should result in a much lower business income tax rate in 2013 and going forward.
Thus, businesses will get 2012 income tax deductions for both the 100% first-year tax depreciation on equipment purchases in 2012 and the substantially accelerated first-year tax deprecation on building investments in 2012 at a business income tax rate which is much higher in 2012, and then the future earnings from these equipment and building investments will generate post 2012 earnings streams from these investments which are taxed at a much lower post tax reform business income tax rate. Wow, now that is bold economic stimulation.
But these explosive economic benefits to US businesses from this accelerated first-year tax depreciation does not necessarily mean that there will be resultant substantial US job creation from it.
Thus, I would make sure that the largest of the US Corps…..say the top 50 or so…..would get these first-year accelerated tax depreciation benefits in 2012 only if they add a sufficient number of US full-time workers in 2012.
And similar economic benefits will result from the Research and Experimentation Expenditures. Not only will businesses get higher Research Tax Credits in 2012 for making investments in 2012, but they will also get 2012 tax deductions from these Research investments made in 2012 at the higher business income tax rate in 2012, and then subsequently get the future earnings stream from these Research investments taxed at the lower post tax reform business income tax rate that will be applicable starting in 2013 and going forward.
Below here is the Illinois headquarters location of each of these 82 Illinois Corporations. Of these 82 Illinois Corps, 75 of them are in the Chicago area.
| Illinois Corporation | Illinois HQs |
| McDonalds | Oak Brook |
| Abbott Labs | Abbott Park |
| Caterpillar | Peoria |
| Kraft Foods | Northfield |
| Deere | Moline |
| Walgreens | Deerfield |
| Accenture | Chicago |
| Discover Financial Services | Riverwoods |
| Archer Daniels Midland | Decatur |
| Baxter | Deerfield |
| CF Industries | Deerfield |
| Illinois Tool Works | Glenview |
| CME Group | Chicago |
| Aon | Chicago |
| CNH Global NV | Burr Ridge |
| Dover | Downers Grove |
| WW Grainger | Lake Forest |
| Allstate | Northbrook |
| Northern Trust | Chicago |
| CNA Financial | Chicago |
| United Continental | Chicago |
| Motorola Solutions | Schaumburg |
| Corn Products Intl | Westchester |
| Sara Lee | Downers Grove |
| Terra Nitrogen LP | Deerfield |
| DeVry | Downers Grove |
| Beam | Deerfield |
| Molex | Lisle |
| Hospira | Lake Forest |
| Stericycle | Lake Forest |
| Telephone & Data Systems | Chicago |
| LKQ Corp | Chicago |
| RR Donnelley | Chicago |
| Navistar | Warrenville |
| US Cellular | Chicago |
| Ventas | Chicago |
| Anixter | Glenview |
| Aptargroup | Crystal Lake |
| IDEX | Lake Forest |
| Tenneco | Lake Forest |
| Packaging Corp America | Lake Forest |
| CBOE Holdings | Chicago |
| Career Education | Schaumburg |
| Jones Lang Lasalle | Chicago |
| Arthur Gallagher | Itasca |
| Ulta Salon | Bolingbrook |
| RLI Corp | Peoria |
| Zebra Technologies | Lincolnshire |
| United Stationers | Deerfield |
| Calamos Asset Mgt | Naperville |
| GATX | Chicago |
| CDW Corp | Vernon Hills |
| Morningstar | Chicago |
| Treehouse Foods | Westchester |
| Middleby | Elgin |
| SXC Health Solutions | Lisle |
| WMS Industries | Waukegan |
| Allscripts HC Solutions | Chicago |
| Littelfuse | Chicago |
| Titan Intl | Quincy |
| AAR | Wood Dale |
| Brunswick | Lake Forest |
| Stepan | Northfield |
| Kapstone Paper & Packaging | Northbrook |
| Horace Mann Education | Springfield |
| Kemper | Chicago |
| SunCoke Energy | Lisle |
| OfficeMax | Naperville |
| MB Financial | Chicago |
| Strategic Hotels | Chicago |
| Tellabs | Naperville |
| Motorola Mobility | Libertyville |
| Groupon | Chicago |
| Old Republic | Chicago |
| General Growth Properties | Chicago |
| USG | Chicago |
| Sears Holding | Hoffman Estates |
| HSBC Finance US | Mettawa |
Late Additions
| Transunion | Chicago |
| First Busey | Urbana |
| Ryerson | Chicago |
| Gogo | Itasca |
| Obama | |||||
| Bump | |||||
| PTI(L) | PTI(L) | ||||
| 1 Year | 2 Year | ||||
| PTI(L) | PTI(L) | PTI(L) | % | % | |
| 2011 | 2010 | 2009 | Change | Change | |
| mils $s | mils $s | mils $s | |||
| Illinois | |||||
| McDonalds | 8,012 | 7,000 | 6,487 | 14% | 24% |
| Abbott Labs | 7,372 | 6,026 | 6,280 | 22% | 17% |
| Caterpillar | 6,725 | 3,750 | 569 | 79% | 1082% |
| Kraft Foods | 4,772 | 3,642 | 3,946 | 31% | 21% |
| Deere | 4,223 | 3,025 | 1,339 | 40% | 215% |
| Walgreens | 3,860 | 3,373 | 3,164 | 14% | 22% |
| Accenture | 3,512 | 2,914 | 2,678 | 21% | 31% |
| Discover Financial Services | 3,511 | 1,269 | 229 | 177% | 1433% |
| Archer Daniels Midland | 3,015 | 2,585 | 2,500 | 17% | 21% |
| Baxter | 2,809 | 2,590 | 2,734 | 8% | 3% |
| CF Industries | 2,646 | 688 | 696 | 285% | 280% |
| Illinois Tool Works | 2,593 | 2,089 | 1,320 | 24% | 96% |
| CME Group | 1,937 | 1,722 | 1,438 | 12% | 35% |
| Aon | 1,384 | 1,059 | 949 | 31% | 46% |
| CNH Global | 1,151 | 416 | (93) | 177% | 1338% |
| Dover | 1,095 | 899 | 494 | 22% | 122% |
| WW Grainger | 1,052 | 854 | 660 | 23% | 59% |
| Allstate | 960 | 1,126 | 1,248 | -15% | -23% |
| Northern Trust | 884 | 990 | 1,255 | -11% | -30% |
| CNA Financial | 877 | 1,112 | 540 | -21% | 62% |
| United Continental | 845 | 354 | (321) | 139% | 363% |
| Motorola Solutions | 738 | 664 | 633 | 11% | 17% |
| Corn Products Intl | 593 | 275 | 115 | 116% | 416% |
| Sara Lee | 542 | 573 | 462 | -5% | 17% |
| Terra Nitrogen LP | 508 | 202 | 144 | 151% | 253% |
| DeVry | 494 | 413 | 237 | 20% | 108% |
| Beam | 433 | 346 | 341 | 25% | 27% |
| Molex | 430 | 168 | (21) | 156% | 2148% |
| Hospira | 373 | 379 | 384 | -2% | -3% |
| Stericycle | 372 | 332 | 278 | 12% | 34% |
| Telephone & Data Systems | 364 | 286 | 385 | 27% | -5% |
| LKQ Corp | 336 | 270 | 205 | 24% | 64% |
| RR Donnelley | 326 | 416 | 260 | -22% | 25% |
| Navistar | 320 | 290 | 359 | 10% | -11% |
| US Cellular | 313 | 241 | 349 | 30% | -10% |
| Ventas | 310 | 254 | 211 | 22% | 47% |
| Anixter | 304 | 212 | 98 | 43% | 210% |
| Aptargroup | 275 | 254 | 184 | 8% | 49% |
| IDEX | 274 | 232 | 169 | 18% | 62% |
| Tenneco | 271 | 132 | (41) | 105% | 761% |
| Packaging Corp America | 244 | 239 | 149 | 2% | 64% |
| CBOE Holdings | 240 | 165 | 177 | 45% | 36% |
| Career Education | 234 | 313 | 226 | -25% | 4% |
| Jones Lang Lasalle | 222 | 203 | 3 | 9% | 7300% |
| Arthur Gallagher | 208 | 203 | 211 | 2% | -1% |
| Ulta Salon | 196 | 118 | 66 | 66% | 197% |
| RLI Corp | 190 | 178 | 132 | 7% | 44% |
| Zebra Technologies | 180 | 150 | 72 | 20% | 150% |
| United Stationers | 173 | 183 | 160 | -5% | 8% |
| Calamos Asset Mgt | 156 | 148 | 93 | 5% | 68% |
| GATX | 148 | 97 | 108 | 53% | 37% |
| CDW Corp | 147 | (37) | (219) | 497% | 167% |
| Morningstar | 140 | 128 | 128 | 9% | 9% |
| Treehouse Foods | 140 | 136 | 122 | 3% | 15% |
| Middleby | 140 | 114 | 100 | 23% | 40% |
| SXC Health Solutions | 138 | 98 | 68 | 41% | 103% |
| WMS Industries | 124 | 171 | 140 | -27% | -11% |
| Allscripts HC Solutions | 117 | 104 | 44 | 13% | 166% |
| Littelfuse | 115 | 108 | 11 | 6% | 945% |
| Titan Intl | 112 | 6 | (20) | 1767% | 660% |
| AAR | 109 | 68 | 90 | 60% | 21% |
| Brunswick | 109 | (85) | (685) | 228% | 116% |
| Stepan | 105 | 101 | 97 | 4% | 8% |
| Kapstone Paper & Packaging | 100 | 41 | (62) | 144% | 261% |
| Horace Mann Education | 95 | 111 | 104 | -14% | -9% |
| Kemper | 83 | 237 | 228 | -65% | -64% |
| SunCoke Energy | 66 | 193 | 232 | -66% | -72% |
| Office Max | 58 | 116 | (30) | -50% | 293% |
| MB Financial | 44 | (42) | (107) | 205% | 141% |
| Strategic Hotels | (76) | (104) | (136) | 27% | 44% |
| Tellabs | (92) | 192 | 113 | -148% | -181% |
| Motorola Mobility | (148) | (287) | (1,335) | 48% | 89% |
| Groupon | (254) | (217) | (1) | -6% | -25300% |
| Old Republic | (237) | 28 | (274) | -946% | 14% |
| General Growth Properties | (299) | (403) | (279) | 26% | -7% |
| USG | (347) | (381) | (370) | 9% | 6% |
| Sears Holding | (1,102) | 166 | 391 | -764% | -382% |
| HSBC Finance US | (3,734) | (3,903) | (8,784) | 4% | 57% |
| Total all 78 | 68,655 | 52,078 | 33,827 | 32% | 103% |
Late Additions
| Transunion | 126 | 139 | 206 | -9% | -39% |
| First Busey | 45 | 33 | (191) | 36% | 124% |
| Ryerson | 32 | (57) | (107) | 156% | 130% |
| Gogo | (34) | (77) | (142) | 56% | 76% |
| Grand Total all 82 | 68,824 | 52,116 | 33,593 | 32% | 105% |
