S&P : Global Sales 1 Year in Review

Transcription

1 August 2014 CONTRIBUTORS Howard Silverblatt Senior Index Analyst S&P : Global 1 Year in Review In 2013, European sales continued to decrease, falling to 6.8 all S&P 500 sales, down from 9.7% in 2012 and 11.1% in in the U.K. declined to 1.2% in 2013 from 1.7% in 2012 and 2.4% in European ex-u.k. sales represented 5.7 all S&P 500 sales in 2013, decreasing from 8.0% in 2012 and 8.7% in Asian sales increased to 7.7 all sales in 2013, up from 7.5% in 2012 and 7.2% in Canadian sales declined to 2.2 all sales in 2013, down from 4.1% in 2012 and from 4.3% in technology continued to be the most successful (and exposed) sector in terms of foreign sales. In 2013, its declared sales were foreign. The sector represents 14.8 all U.S. foreign sales, down from 16.2% in In 2013, S&P 500 companies continued to send more payments to Washington for income taxes than they did to foreign governments, as the percentage going to the U.S. increased to 54.9 declared amounts, up from 51.2% in 2012, with 45.1 taxes being sent to foreign governments in 2013 and 48.8% in Payments to Washington increased 8.2% in 2013 to USD billion from 2012 s USD billion, as payments abroad declined 6.9% to USD billion from USD billion. There was a noticeable deterioration in the quantifiable data reported by companies with respect to their foreign sales. Over half of S&P 500 issues did not report sufficient information to facilitate producing a complete report on global sales. Given the current discussion on corporate domestic and foreign tax rates and policy, as well as inversions and recent proposed spin-offs into real estate investment trusts, the reduced level of specific data was both a surprise and a disappointment. The lack of disclosure can only make the current discussions more difficult. Among the reporting issues, 46.3 all sales were produced and sold outside of the U.S., as compared with 46.6% in 2012 and 46.1% in On a pro forma basis, using the current membership of the index, the slight decline to 46.3% would have instead been an increase from the 46.1% in 2012 and 44.6% in 2011 if the same issues were utilized. 1 represent issue-level sales by current S&P 500 members as reported in filings with the U.S. Securities and Exchange Commission (or available in press releases) and compiled by S&P Capital IQ.

2 S&P : Global Year in Review August 2014 TABLE OF CONTENTS 1. Overview 3 2. Global 4 3. Income Taxes 5 4. Selected Sector 6 5. Issue-Level Data 9 2

3 S&P : Global Year in Review August OVERVIEW In 2002, we deleted foreign issues from the S&P 500, rendering the index a pure U.S. play. However, being an n company doesn t mean you re not global. While globalization is apparent in almost all company reports, exact sales and export levels are unfortunately difficult to obtain. Many companies tend to categorize sales by regions or markets, while others segregate government sales. Additionally, intra-company sales, and hence profits, are sometimes structured to take advantage of trade, tax and regulatory policy. Recent changes in domicile, inspired by tax savings, have also changed the technical classification of what is considered foreign. The resulting reported data available to shareholders is therefore significantly less substantial than what we d need to complete a truly comprehensive analysis. However, using what data is available, we do offer annual reports on foreign sales, which are designed to be starting points that provide a rare glimpse into global sales composition but should not be considered statements of exact values. Overall, company reporting has remained poor at best, with a notable decrease in the quantifiable data for While nice pictures and messages from senior management abound, tabular tables not required under Generally Accepted Accounting Principles (GAAP) are few and far between in the reports. Investors need to be careful when determining what data and statistics to use. To illustrate this point, based on the current 2013 reports, foreign sales appear to account for 26.0 total sales (28.7% in 2012). However, if we use only the companies that reported foreign sales, the rate increases to 42.1% (42.5% in 2012). If we eliminate some of the stranger values, such as companies reporting at or over 100% or reporting a zero rate due to where (and how) the sales were booked (having a zero foreign rate and several foreign plants is reason for doubt), the rate calculates to 46.3%, a slight decline from the 46.6% posted in 2012, which was a slight gain from the 46.1% reported in This adjusted rate, 46.3%, is the rate we use for guidance and as a holding spot for the actual value. Now let s dig deeper. The overall 2013 results show that foreign sales as a percentage of total S&P 500 sales decreased to 46.29%, compared to 46.59% in 2012 and 46.12% in 2011; the most recent high was in 2008, when it was 47.94%. Notably, on a pro forma basis and looking only at current issues in the index (as compared to the actual time series, which is based on the historical membership), the decreased foreign sales figure of 46.29% becomes a slight increase (to 46.10%), and a more substantial increase from the 2011 pro forma figure (44.57%). The 2013 data inspires several observations. In 2008, S&P 500 issues paid more to foreign entities (55.8%) than to the U.S. government (44.2%) in income taxes. In 2009, that trend reversed as foreign sales declined more than U.S. domestic sales. For 2010, the change was significant, as income taxes paid to foreign governments increased 27.7% compared to the 9.7% increase in U.S. domestic income taxes. The 2011 findings showed a continuation of the trend, with 54.7 income taxes paid by S&P 500 issues paid to foreign entities, compared with 53.6% in In 2012, the tide again turned to more income taxes being sent to Washington than abroad. For fiscal 2013, S&P 500 issues continued that tendency, sending 8.17% more to Washington billion) than they did in billion). The companies decreased their foreign income tax payments by 6.7% to USD billion, from payments of USD billion in The overall tax split worked out to the U.S. receiving 54.9% and foreign entities receiving 45.1 taxes, compared to the split of 51.2% and 48.8% in 2012, which drastically changed from the split in 2008 of 44.2% and 55.8%. The information technology sector has maintained strong foreign sales, with 56.6% booked as foreign in 2013 (down from 58.3% in 2012 and on par with the 56.5% posted in 2011). Financials companies increased their rate after three years of decreases, posting a 32.3% level; the rate was up from the 2012 level of 30.0% and down from the prior three years levels of 34.7% (2011), 37.1% (2010) and 40.2% (2009). Regional data show that European sales continued to decrease, representing 14.7 all foreign sales in 2013, down from 20.8% in 2012 and 24.0% in Asian sales again increased, representing 16.7 all foreign sales, up from 16.0% in 2012 and 15.5% in In 2013, Asian sales accounted for 7.71 all S&P 500 sales, with European sales accounting for 6.80%. European sales ex-u.k. accounted for 5.69% in 2013, down from 7.97% in 2012 and 8.69% in Disturbingly, from a data analysis standpoint, 49.2 the declared sales were classified as coming from foreign countries, meaning that no breakdown was given (up from 39.7% in 2012). On a declared country basis, Canada declined to 4.8 foreign sales in 2013, from 8.8% in The U.K. also significantly decreased its share of foreign sales to 2.4% (1.1 all sales), from 3.7% (1.7 all sales) in

4 S&P : Global Year in Review August 2014 It would be helpful if there were current legislative or policy proposals to require reporting, but there are not. Additionally, for 2013, data-available for and compatible with this report was noticeably less substantial. Compounding the issue, companies often prefer not to report the actual values. From an investor perspective, it would be beneficial to be able to create a matrix based on production and sales that accounts for parts made in China, assembled in Europe and sold in the U.K., with profits translated into U.S. dollars. Investors could then fill in the currency rates and see the income impact. For now, we re using 46.3% as a holding position for foreign sales as a percentage of total S&P 500 sales, and we are working under an assumption (based on even less specific reporting) that slightly less than half of pre-tax operating earnings hail from abroad. Our European working number is 6.8 all sales, and the level is 7.7% for Asia. 2. GLOBAL SALES [Note: are calculated on a fiscal basis, since quarterly reporting is materially less than annual, and therefore does not match official quarterly values. sales represent products and services produced and sold outside of the U.S.] On an actual quarterly basis, based on the quarterly membership, calendar-year 2013 sales for the S&P 500 rose a disappointing 1.5% to USD 9.96 trillion from USD 9.81 trillion in 2012, and were up only 5.6% from the 12- month September 2008 level of USD 9.43 trillion. Due to reporting, fiscal data is used for this report, which is different from official S&P 500 aggregates calculated on a quarterly basis. On that aggregate basis, total reported fiscal sales for 2013 set a new record, posting a minor 1.3% increase to USD trillion, from the 2012 level of USD trillion, which was up 8.8% from the 2011 value of USD 9.57 trillion. fell 12% in 2009 following the sudden and extensive decline due to the global recession and subsequent massive pull-back in consumer and corporate spending. The overall slower rate of the recovery in sales over the past few years reflects the uncertainty of the markets, as corporations made few forward commitments to production increases that could assist in job creation. s have reprioritized their expenditures (also due to their perceived economic instability), which has compounded the nervousness of corporate planners. Earnings, however, have recovered much faster, partially helped by lower interest costs and higher productivity. The net result is that both operating and as reported margins now stand at record levels. reported foreign sales, as a percentage of full sales (regardless of whether the company reported foreign sales), decreased to 26.00% in 2013, from 28.71% in 2012 (25.19% in 2011). It is imperative to note that these values include issues that have not fully reported their foreign data, and therefore, they underestimate the actual values. For comparison, we also calculated the values using only the subset of issues that reported full information. These issues paint a different picture, with the reported issues posting a slight decrease in 2013 to 46.29% from the 46.59% posted in 2012, which was up from 2011 s 46.14%. The rate has stayed at the 46% level since 2008, when it stood at 47.94%. The slight decrease would appear to be statistically insignificant, with non-quantifiable amounts due to volatile changes in currency rates, membership and contracts. Additionally, several issues within the S&P 500 have redomiciled, and now report U.S. sales as foreign. On a pro forma basis, using the current S&P 500 issues and comparing foreign sales history as if it were part of historical index data, the % figure shows an increase from 46.10% reported for the same issues in 2012 (some of which were not in the index at the time), and 44.57% in This increase is strong and shows a growing foreign presence. Exhibit 1: as a Percentage of 2013 (%) 2012 (%) 2011 (%) 2010 (%) 2009 (%) 2008 (%) 2007 (%) 2006 (%) 2005 (%) 2004 (%) 2003 (%) Pro Forma Based on Current Membership (%) Source: S&P Dow Jones Indices LLC. Data as of July 31, Charts and tables are provided for illustrative purposes. Past performance is no guarantee of future results. 4

5 S&P : Global Year in Review August 2014 Exhibit 2: by Region Region 2013 (%) 2012 (%) 2011 (%) 2010 (%) 2009 (%) Africa Asia Australia Europe North (Ex-U.S.) South Source: S&P Dow Jones Indices LLC. Data as of July 31, Charts and tables are provided for illustrative purposes. Past performance is no guarantee of future results. 3. INCOME TAXES While revenue gains were more modest than earnings (with the result being record-high margins), tax payments for companies that revealed their domestic and foreign income tax payments were volatile over the past few years. In 2008, U.S. companies paid more in income tax payments to foreign entities than to the U.S. government 135 billion vs. USD 107 billion). In 2009, as foreign sales declined more than their U.S. domestic counterparts, U.S. issues bucked the trend, sending slightly more to Washington than to foreign countries 92.7 billion vs. USD 91.9 billion). In 2010, the turnaround was again significant, with companies sending USD billion to Washington and USD billion abroad a 27.7% jump in foreign payments compared to a 9.7% increase in domestic ones. In 2011, the trend in payments continued, with S&P 500 issues sending USD billion to foreign entities for income taxes and USD billion to Washington. The resulting mix was 54.7% paid abroad and 45.3% paid domestically. For 2012, as the U.S. recovery outpaced most of the world markets, taxes paid to Washington increased by 24.2% to USD billion, a USD 28.4 billion increase, as income taxes paid abroad slightly decreased to USD billion, a USD 2.5 billion decline. The result was that S&P 500 issues sent more to Washington (51.2%) in 2012 than they sent abroad (48.8%), for the first time since 2009 (50.2%). For 2013, as previously noted, reporting declined. Adding to the problem of reduced reporting, more issues within the S&P 500 have changed their domicile to outside the U.S. In 2013, S&P 500 companies continued to send more payments to Washington for income taxes than they did to foreign governments, as the percentage going to the U.S. increased to 54.9 declared amounts from 51.2% in 2012, with 45.1% being sent to foreign governments in 2013 and 48.8% in Payments to Washington increased 8.2% to USD billion, from 2012 s USD billion, as payments abroad declined 6.9% to USD billion from USD billion in Related, but not part of this report, is the current discussion of companies redomiciling themselves to save on taxes. While the issue is a hot topic in both board rooms and Washington, it is generally seen as a problem to be solved as part of a more comprehensive income tax change. The expected window for this overhaul is after the November 2014 elections but before the primaries start for the 2016 election. taxes were not broken down by county or region. However, given the decline in European sales and increase in Asian sales (based on reported data), one could speculate about whether the recent change also spurred a shift from higher-taxing sovereigns to lower-taxing ones. 5

6 S&P : Global Year in Review August 2014 Exhibit 3: S&P Income Taxes Paid , , , ,341 91, , ,610 U.S. 157, , , ,662 92, , ,104 % Change U.S. % Change Change -9,599-2,507 24,299 25,464-43,252 11, ,610 U.S. Change 11,905 28,428 15,675 8,995-14,538-43, , U.S Source: S&P Dow Jones Indices LLC. Data as of July 31, Charts and tables are provided for illustrative purposes. Past performance is no guarantee of future results. 4. SELECTED SECTOR SALES Due to incomplete reporting, the aggregate data does not permit simple foreign representation or sector analysis. For the purposes of this report, we have therefore reduced the S&P 500 pool to issues that have reported full foreign sales, for which foreign sales represent between 15% and 85 total sales. At this stage of reporting, we still believe this is the best approximation of the true aggregate values, although, as we have unfortunately said before, we eagerly look forward to a time when the full group can be analyzed without restraints. Quantifiable data for the 2013 report is less extensive than that available for the 2012 analysis. For 2013, we were able to utilize 239 issues with complete and comparable data, which represents a decrease of 25 issues from the 264 utilized in The hope had been that more issues would divulge data, especially given the public debate on foreign taxes. However, the 239 reporting issues are now on par with the 239 that reported in After this paper is published, S&P Dow Jones Indices will review potential reasons for the reduced reporting. The number of companies that reported some foreign data was slightly higher in However, companies that did not report full data were not used in the analysis. The result was that for 2012, we used 91.9 total foreign sales reported, up from 90.9% in 2011, and slightly lower than the 92.0% used in 2010 (versus 91.9% in 2009 and 90.2% in 2008). The relative stability of included issues over the past several years speaks to the lack of progress in disclosure and detailed reporting. Exhibit 4: S&P 500 Selected Issues Between 15% and 85% Issues With No or Incomplete Issues Issues Under 15% Issues Over 85% Issues at 100% (Included in Over 85% Level) Source: S&P Dow Jones Indices LLC. Data as of July 31, Charts and tables are provided for illustrative purposes. Past performance is no guarantee of future results. Using the subset of issues that reported sufficient data, sales were produced and sold outside of the U.S., a slight decline from the 46.59% reported in technology continued to dominate the sectors, with 56.6% (down from 58.3% in 2012 and on par with the 56.5% level in 2011) of its sales coming from abroad, representing 14.8 all declared foreign sales. The 6

7 S&P : Global Year in Review August 2014 sector is down from 16.2% in 2012 and 19.0% in Six of the 22 issues (9 of 18 in 2012) that were not included in calculations due to foreign sales in excess of 85% were information technology issues. Accenture (CAN), Seagate (STX) and Qualcomm (QCOM) all reported that all of their sales were foreign, with Broadcom (BRCM), Texas Instruments (TXN) and Jabil Circuiting (JBL) reporting over 85 their sales as foreign. Therefore, we believe that the 14.8% value underestimates the information technology sector s contribution to foreign sales. increased its reported sector foreign sales to 54.6 all sales, from 2012 s 52.6%, and is up significantly from the 39.3% reported in 2011; it reported 55.7% in Given the current volatility of oil, additional exploration and production in the energy sector could continue to shift in the coming years. However, final sales of the refined product may remain primarily in the U.S. Few revenue breakdowns were provided in the telecommunications and utilities sectors, resulting in a lack of meaningful statistics. Exhibit 5: as a Percentage of Sector Sector 2013 (%) 2012 (%) 2011 (%) 2010 (%) 2009 (%) 2008 (%) 2007 (%) Staples Financials Healthcare Industrials Materials Telecommunication Services N/M N/M N/M N/M N/M N/M N/M Utilities N/M N/M N/M N/M N/M N/M N/M Non-U.S. (15%-85%) Source: S&P Dow Jones Indices LLC. Data as of July 31, Charts and tables are provided for illustrative purposes. Past performance is no guarantee of future results. Exhibit 6: Sector as a Percentage of Sector 2013 (%) 2012 (%) 2011 (%) 2010 (%) 2009 (%) 2008 (%) 2007 (%) Staples Financials Healthcare Industrials Materials Telecommunication Services Utilities Non-U.S. (15%-85%) Source: S&P Dow Jones Indices LLC. Data as of July 31, Charts and tables are provided for illustrative purposes. Past performance is no guarantee of future results. 7

8 S&P : Global Year in Review August 2014 Exhibit 7: Top 25 Regional by Segment Company Ticker Sector Segment 2013 Segment Segment Segment WAL-MART STORES INC WMT Staples Domestic 474, , , CHEVRON CVX CHEVRON CVX 211, , , , , , EXXON MOBIL XOM Domestic 390, , WAL-MART STORES INC WMT Staples WAL-MART STORES INC WMT Staples AT&T INC T Telecommunication Services 474, , , , , , Domestic 128, , CVS CAREMARK CVS Staples Domestic 126, , MCKESSON MCK Healthcare Domestic 137,609 15, , EXXON MOBIL XOM INTL BUSINESS MACHINES INTL BUSINESS MACHINES GENERAL MOTORS CO IBM IBM GM 390, , , , , , , , ,751 64, , ,751 64, , ,427 64, , EXXON MOBIL XOM Canada 390,247 35, INTEL INTC Asia 52,708 43, , Asia 170, , , GENERAL ELECTRIC CO GE Industrials Pacific 142,937 25, GENERAL ELECTRIC CO GE Industrials Europe 142,937 25, BOEING CO BA Industrials Asia 86,623 49, , LYONDELLBASELL United LYB Materials INDUSTRIES NV States 44,062 43, , PHILLIPS 66 PSX Great Britain 157,730 56, , FORD MOTOR CO F Canada 146,917 61, , QUALCOMM INC QCOM Asia 24,866 24, , Source: S&P Dow Jones Indices LLC. Data as of July 31, Charts and tables are provided for illustrative purposes. Past performance is no guarantee of future results. 8

9 S&P : Global Year in Review August ISSUE-LEVEL DATA Exhibit 8: Top 15 by Segment Company Ticker Sector Segment CHEVRON CVX WAL-MART STORES INC EXXON MOBIL INTL BUSINESS MACHINES WMT XOM IBM Staples CHEVRON CVX WAL-MART STORES INC EXXON MOBIL INTL BUSINESS MACHINES WMT XOM IBM Staples CHEVRON CVX WAL-MART STORES INC INTL BUSINESS MACHINES GENERAL MOTORS CO WMT IBM Staples 2013 Segment 211, , , , , , , , , , , ,751 64, , , , , , , , , , , , , ,751 64, , , , , , , , , , , ,751 64, , GM 155,427 64, , Source: S&P Dow Jones Indices LLC. Data as of July 31, Charts are provided for illustrative purposes. Past performance is no guarantee of future results. 9

10 S&P : Global Year in Review August 2014 Exhibit 9: Top Regional by Region Company Ticker Sector Region 2013 Segment DOW CHEMICAL DOW Materials Africa 57,080 38, , JOHNSON & JOHNSON JNJ Healthcare Africa 71,312 39, , MERCK & CO MRK Healthcare Africa 44,033 25, , CISCO CSCO SYSTEMS INC Africa 48,607 19, , ACCENTURE ACN PLC Africa 30,394 30, , INTEL INTC Asia 52,708 43, , Asia 170, , , BOEING CO BA Industrials Asia 86,623 49, , QUALCOMM INC QCOM Asia 24,866 24, , CONOCOPHILLI PS COP Asia 54,413 26, , ALCOA INC AA Materials Australia 23,032 11, , JOY GLOBAL INC JOY Industrials Australia 5,013 3, CAMPBELL SOUP CO CPB Staples Australia 8,052 1, PENTAIR PLC PNR Industrials Australia 7,480 5, GENWORTH FINANCIAL INC GNW Financials Australia 9,403 2, DU PONT (E I) DE NEMOURS DD Materials Brazil 35,935 21, , AES AES Utilities Brazil 15,891 12, , DIRECTV DTV Brazil 31,754 6, , ALCOA INC AA Materials Brazil 23,032 11, , EXXON MOBIL XOM Canada 390, , FORD MOTOR F CO Canada 146,917 61, , COSTCO WHOLESALE COST Staples Canada 105,156 29, , HOME DEPOT HD INC Canada 78,812 8, , FLUOR FLR Industrials Canada 27,352 20, , WAL-MART STORES INC WMT Staples Domestic 474, , , EXXON MOBIL XOM Domestic 390, , AT&T INC T Telecommunication Services Domestic 128, , CVS CAREMARK CVS Staples Domestic 126, , MCKESSON MCK Healthcare Domestic 137,609 15, , GENERAL ELECTRIC CO GE Industrials Europe 142, , JOHNSON & JOHNSON JNJ Healthcare Europe 71,312 39, , MONDELEZ INTERNATIONAL MDLZ Staples Europe 35,299 28, , INC UNITED TECHNOLOGIES UTX Industrials Europe 62,626 26, , PFIZER INC PFE Healthcare Europe 51,452 31, , Source: S&P Dow Jones Indices LLC. Data as of July 31, Charts are provided for illustrative purposes. Past performance is no guarantee of future results. 10

11 S&P : Global Year in Review August 2014 Exhibit 9: Top Regional by Region (continued) Company Ticker Sector Region CHEVRON CVX WAL-MART STORES INC EXXON MOBIL INTL BUSINESS MACHINES LYONDELLBASE LL INDUSTRIES NV WMT XOM IBM Staples 2013 Segment 211, , , , , , , , , , , ,751 64, , LYB Materials France 44,062 43, , PHILLIPS 66 PSX Germany 157,730 56, , JOHNSON CONTROLS INC LYONDELLBASE LL INDUSTRIES NV JCI Germany 42,730 26, , LYB Materials Germany 44,062 43, , ABBVIE INC ABBV Healthcare Germany 18,790 8, , DANAHER DHR Industrials Germany 19,118 11, , PHILLIPS 66 PSX VALERO ENERGY FORD MOTOR CO CONOCOPHILLI PS VLO F COP PPL PPL Utilities Great Britain Great Britain Great Britain Great Britain Great Britain 157,730 56, , , , ,917 61, , ,413 26, , ,905 2, , METLIFE INC MET Financials Japan 68,180 16, , ORACLE HARTFORD FINANCIAL SERVICES ORCL Japan 38,275 21, , HIG Financials Japan 25,949 5, , MERCK & CO MRK Healthcare Japan 44,033 25, , INTEL INTC Japan 52,708 43, , PEPSICO INC PEP Staples Mexico 66,415 32, , JABIL CIRCUIT INC NOBLE PLC KANSAS CITY SOUTHERN SEMPRA ENERGY JBL Mexico 18,337 15, , NE Mexico 4,234 3, , KSU Industrials Mexico 2,369 1, , SRE Utilities Mexico 10,557 2, BOEING CO BA Industrials OCCIDENTAL PETROLEUM NOBLE PLC OXY Middle East Middle East 86,623 49, , ,455 8, , Middle NE 4,234 3, East Source: S&P Dow Jones Indices LLC. Data as of July 31, Charts are provided for illustrative purposes. Past performance is no guarantee of future results. 11

12 S&P : Global Year in Review August 2014 Exhibit 9: Top Regional by Region (continued) Company Ticker Sector Region ROWAN COS PLC MOTOROLA SOLUTIONS INC SCHLUMBERGE R LTD RDC MSI SLB ACE LTD ACE Financials MICHAEL KORS HOLDINGS LTD ILLINOIS TOOL WORKS TYCO INTERNATIONAL LTD GENERAL ELECTRIC CO NEWMONT MINING CONSTELLATIO N BRANDS -CL A HOST HOTELS & RESORTS INC ACCENTURE PLC SCHLUMBERGE R LTD MONDELEZ INTERNATIONAL INC WHIRLPOOL AVON PRODUCTS KORS ITW TYC Industrials Industrials Middle East Middle East North North North North North 2013 Segment 1,579 1, , ,266 32, , ,232 16, , ,311 3, , ,135 8, , ,647 10, , GE Industrials Pacific 142, , NEM Materials Pacific 8,322 5, , STZ Staples Pacific 4, HST Financials Pacific 5, ACN SLB MDLZ WHR AVP Staples Staples CHEVRON CVX WAL-MART STORES INC INTL BUSINESS MACHINES GENERAL MOTORS CO LYONDELLBASE LL INDUSTRIES NV EATON PLC DELPHI AUTOMOTIVE PLC WMT IBM GM LYB ETN DLPH Staples Materials Industrials COVIDIEN PLC COV Healthcare TYCO INTERNATIONAL LTD TYC Industrials South South South South South United States United States United States United States United States 30,394 30, , ,266 32, , ,299 28, , ,769 8, , ,955 8, , , , , , , , , , , ,751 64, , ,427 64, , ,062 43, , ,046 16, , ,463 10, , ,235 10, , ,647 10, , Source: S&P Dow Jones Indices LLC. Data as of July 31, Charts are provided for illustrative purposes. Past performance is no guarantee of future results. 12

13 S&P : Global Year in Review August 2014 DATA AND CLASSIFICATIONS All company-level data used throughout this report was derived from data filed with the Securities and Exchange Commission, as compiled by S&P Capital IQ and S&P Dow Jones Indices. The constituents used consist of the current S&P 500 membership, and the data represent the latest fiscal values. Data that does not conform, or was deemed incomplete for presentation, was not utilized. Additionally, individual issues that did not have complete data were omitted from the summary data. For this reason, some of the sums or variances of the data do not match the aggregates. This report was prepared by S&P Dow Jones Indices, which is analytically and editorially separate and distinct from any affiliates including but not limited to Standard & Poor s Ratings Services and S&P Capital IQ. Please note that the statistical data is based on publicly available information. 13

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