Post on 16-Apr-2020
2010-2011 Schedule M-3 ProfilesAnd Schedule UTP Filing Status
by Charles Boynton, Portia DeFilippes, Ellen Legel, and
Lisa Rupert
Reprinted from Tax Notes, November 3, 2014, p. 535
tax notesVolume 145, Number 5 November 3, 2014
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2010-2011 Schedule M-3 ProfilesAnd Schedule UTP Filing StatusBy Charles Boynton, Portia DeFilippes,
Ellen Legel, and Lisa Rupert
Table of Contents
I. Executive Summary and Conclusions . . . . 536A. General Conclusions . . . . . . . . . . . . . . . 536B. Discussion . . . . . . . . . . . . . . . . . . . . . . 536C. Conclusions: SEC 10K/Public . . . . . . . . 537D. Conclusions: Audited . . . . . . . . . . . . . . 537E. Conclusions: Unaudited . . . . . . . . . . . . 538
II. Schedules M-3 and UTP Background . . . . 538A. Schedule M-3 Overview . . . . . . . . . . . . 538B. Schedule M-3 Versus Schedule UTP . . . . 540C. Book-Tax Differences and Signs . . . . . . . 541D. Data Source . . . . . . . . . . . . . . . . . . . . 541E. Limits of Schedule M-3 Data . . . . . . . . . 542
F. Reconciling Counts of Schedule UTP . . . 542III. 2011 Worldwide Income to Tax Less
Credits . . . . . . . . . . . . . . . . . . . . . . . . . . 543A. By Asset Size, FS Type, and UTP
Status . . . . . . . . . . . . . . . . . . . . . . . . . 543B. By Industry and UTP Status . . . . . . . . . 548
IV. 2010 and 2011 Adjusted Mini M-3 . . . . . . . 549A. Mini M-3: Specified Versus Other
Lines . . . . . . . . . . . . . . . . . . . . . . . . . 549B. COGS and Other Adjustments . . . . . . . . 549
V. Analysis of Mini M-3 . . . . . . . . . . . . . . . 551A. Mini M-3 by FS Type by UTP Status . . . 551B. SEC Form 10K/Public Mini M-3 . . . . . . 552C. Audited Mini M-3 . . . . . . . . . . . . . . . . 553D. Unaudited Mini M-3 . . . . . . . . . . . . . . 555
Charles Boynton (charles.e.boynton@irs.gov) is aprogram manager and senior program analyst in theIRS Large Business and International Division Officeof Planning, Analysis, Inventory, and Research(PAIR). He was a member of the original Treasury-IRS Schedule M-3 team in 2003 while serving withthe Treasury Office of Tax Analysis (OTA) and is nowa member of the LB&I Schedule M-3 study group.Portia DeFilippes (Portia.DeFilippes@treasury.gov)is a financial economist in the OTA’s EconomicModeling and Computer Application Division. EllenLegel (ellen.j.legel@irs.gov) is a senior economist andSchedule M-3 analyst with PAIR/LB&I and a mem-ber of the LB&I Schedule M-3 study group. She wasa designer for the taxpayer information gatewayspecial Schedule M-3 reports and was a corporationtax program lead analyst in the Statistics of Incomedivision. She has worked at the SEC and in privatesector investment banking. Lisa Rupert (lisa.j.rupert@irs.gov) is a compliance management team managerin compliance management operations with PAIR/LB&I and a member of the LB&I Schedule M-3 studygroup. She was a prefiling technical guidance tech-nical adviser for compliance assurance process andfor Schedule M-3. She has worked for two Big Fouraccounting firms and in the private sector in federaland state income tax compliance, planning, andconsulting.
This study was prepared for the June 2014 IRSResearch Conference. The authors thank SOI formaking its final corporate files available to create the2010 through 2011 Schedule M-3 ‘‘First Look’’ datasets. Those data sets are available as zip files in anExcel format by e-mail request to charles.e.boynton@irs.gov. The authors also thank RichardBartlett, Thomas Brandt, Paul Coates, Paul Feinberg,Martha Harris, Christopher Larsen, Catherine Leon-ard, Dave Macias, John Miller, Stephen Moore, CliffScherwinski, Matthew Smith, Kenneth Szeflinski,David Wagner, and Kimmy Wang.
The study presents and compares 2010 and 2011Schedule M-3 and Form 1120 tax return data profilesfor Schedule UTP (uncertain tax position statement)filers and nonfilers with $100 million or more inassets. The authors conclude that filing ScheduleUTP does not identify the same tax compliance risksas reporting Schedule M-3 tax-income-decreasingbook-tax differences. They also conclude that Sched-ule UTP and Schedule M-3 are complementary andnot duplicative for tax compliance risk analysis. Onlya minority of large corporations file Schedule UTP,while all file Schedule M-3.
The opinions expressed are those of the authorsand do not necessarily represent positions of theTreasury Department or the IRS.
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E. General Conclusions . . . . . . . . . . . . . . . 556VI. References . . . . . . . . . . . . . . . . . . . . . . . . 556
I. Executive Summary and Conclusions
A. General Conclusions
The study presents and compares 2010 and 2011Schedule M-3 and Form 1120 tax return data pro-files for Schedule UTP (uncertain tax position state-ment) filers and nonfilers with $100 million or morein assets. It includes 12,044 corporations in 2010 and12,307 corporations in 2011. In 2010, Schedule UTPfilers decrease tax income using Schedule M-3book-tax differences less (as a percentage of totalpretax book income) than Schedule UTP nonfilersfor all financial statement types (SEC 10K/public,audited, and unaudited). In 2011, Schedule UTPfilers decrease tax income using book-tax differ-ences less than Schedule UTP nonfilers for SEC10K/public financial statements and decrease taxincome no more than nonfilers for audited financialstatements. The authors conclude that filing Sched-ule UTP does not identify the same tax compliancerisks as reporting Schedule M-3 tax-income-decreasing book-tax differences. They also concludeSchedule UTP and Schedule M-3 are complemen-tary and not duplicative for tax compliance riskanalysis. The authors observe that for all financialstatement types, only a minority of large corpora-tions file Schedule UTP, while all file Schedule M-3.
B. DiscussionTaxpayers prepare corporate and partnership tax
returns by adjusting amounts from their financialstatements or books and records. The goal of theSchedule M-3 reconciliation is to increase taxpayertransparency to the IRS regarding the adjustmentsmade to financial statements or books and recordsin preparing the tax return and to assist the IRS inselecting returns and issues for audit only when taxcompliance risk is present.
Schedule UTP was introduced in 2010 for corpo-rations with assets of $100 million or more withaudited financial statements reporting UTPs in theincome tax footnote and for some related corpora-tions. The goal was to increase taxpayer transpar-ency to the IRS regarding items giving rise tofederal income tax UTPs in the taxpayer’s financialstatements and, again, to assist the IRS in selectingappropriate returns and issues for audit.
The study presents and compares Schedule M-3and Form 1120 tax return data profiles for ScheduleUTP filers and nonfilers with $100 million or morein assets in 2010 and 2011. It includes 12,044 corpo-rations in 2010 and 12,307 corporations in 2011.Only a minority of corporations with $100 millionor more in assets filed Schedule UTP in 2010 and2011. Nonfilers either failed to file or were not
required to file because they had no federal incometax UTPs. In 2010, 1,856 corporations (15.4 percent)in the study population filed Schedule UTP. In 2011,2,074 corporations (16.9 percent) filed ScheduleUTP.
In 2010 the study includes 3,446 corporationswith SEC 10K/public financial statements, 5,218with audited financial statements, and 3,380 withunaudited financial statements. In 2011 the studyincludes 3,370 corporations with SEC 10K/publicfinancial statements, 5,396 with audited financialstatements, and 3,540 with unaudited financialstatements.
The rate of filing Schedule UTP varies across thethree financial statement types. In the study popu-lation with SEC 10K/public financial statements,1,093 corporations (31.7 percent) filed ScheduleUTP in 2010, and 1,227 (36.4 percent) filed it in 2011.In the study population with audited financialstatements, 493 corporations (9.4 percent) filedSchedule UTP in 2010, and 535 (9.9 percent) filed itin 2011. In the study population with unauditedfinancial statements, 269 corporations (8 percent)filed Schedule UTP in 2010, and 311 (8.8 percent)filed it in 2011.
The study uses a ‘‘Mini M-3’’ format to summa-rize the book, tax, and book-tax difference data inSchedule M-3, Parts II and III. The study alsopresents distribution tables of key tax and ScheduleM-3 items by Schedule L total assets, financialstatement type, and the presence or absence ofSchedule UTP.
In the Mini M-3 format, the aggregate amountsreported on the Schedule M-3, Parts II and III ‘‘otherwith difference’’ lines are compared with the aggre-gate amounts reported on the Schedule M-3, Parts IIand III ‘‘specified’’ lines. A Schedule M-3 cost ofgoods sold (COGS) adjustment is used to removethe cost of securities, commodity contracts, andother financial products reported in COGS by somecorporations and to reconcile the COGS amountreported by the IRS Statistics of Income corporatedata file. The Mini M-3 format also makes relatedspecial adjustments to ‘‘other income with differ-ence’’ and ‘‘other items with no difference’’ linesand divides the adjusted ‘‘other items with nodifference’’ line into ‘‘other income with no differ-ence’’ and ‘‘other expense/deduction with no dif-ference’’ lines.
After making the data adjustments, the Mini M-3format has 10 categories of ‘‘specified’’ lines, ‘‘otherwith difference’’ or ‘‘no difference’’ lines, and sub-totals or totals:
• other income with no difference (Part II, line 28adjusted) (gross receipts);
• COGS (Part II, line 17 adjusted);• adjusted gross profit;
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• specified income (Part II, lines 1-16, 18-24, and29a-29c);
• other income with difference (Part II, line 25adjusted);
• adjusted total income;• specified expense/deduction (Part III, lines
3-36);• other expense/deduction with difference (Part
III, line 37);• other expense/deduction with no difference
(an adjustment to Part II, line 28); and• pretax book income.The report tables and text state all Mini M-3
category data as a percentage of adjusted total bookincome to facilitate comparisons between groupswith corporations that differ in size.
In comparing the Schedule M-3 characteristics ofSchedule UTP filers and nonfilers for the threefinancial statement types in the Mini M-3 format, atemporary or permanent book-tax difference com-ponent for any specified-versus-other category isidentified as large in relative magnitude if it is 1.5percent or more in negative or positive (absolute)magnitude as a percentage of adjusted total bookincome. Total pretax income book-tax difference issimilarly described as large in relative magnitude ifit is 1.5 percent or more in negative or positive(absolute) magnitude as a percentage of adjustedtotal book income. Also, in comparing the ScheduleM-3 characteristics of Schedule UTP filers and non-filers for the three financial statement types, totalpretax income book-tax difference is expressed as apercentage of total pretax book income.
The study presents tables for 2011 that includecomparative tax data for 41,636 corporations thatfile Schedule M-3, including 12,307 corporationswith total assets of $100 million or more that arepotentially subject to filing Schedule UTP. The12,307 corporations (30 percent) with assets of $100million or more report 98 percent of assets, approxi-mately 100 percent of net aggregate worldwideincome, 99 percent of the nonincludable foreignincome, approximately 100 percent of net aggregatepretax book income, 95 percent of the net negative(tax-income-decreasing) temporary book-tax differ-ences, 90 percent of the net positive (tax-income-increasing) permanent book-tax differences, and 95percent of tax less credits for the 41,636 corpora-tions.
The 2,074 corporations (5 percent) with assets of$100 million or more that filed Schedule UTP report70 percent of assets, 94 percent of worldwide in-come, 90 percent of the nonincludable foreign in-come, 91 percent of pretax book income, 108 percentof the net negative temporary book-tax differences,
12 percent of the net positive permanent book-taxdifferences, and 66 percent of tax less credits for the41,636 corporations.
In contrast, the 10,233 corporations (25 percent)with assets of $100 million or more that did not fileSchedule UTP (were not required to file or failed tofile) report 28 percent of assets, 6 percent of world-wide income, 9 percent of nonincludable foreignincome, 9 percent of the pretax book income, netpositive temporary book-tax differences equal to -12percent of the net negative temporary book-taxdifferences, 77 percent of the net positive perma-nent book-tax differences, and 29 percent of tax lesscredits for the 41,636 corporations.
C. Conclusions: SEC 10K/PublicThe requirements to file Schedule UTP in 2010
and 2011 identify a minority group of corporationswith SEC 10K/public financial statements with$100 million or more in assets that has UTPs and, inaggregate, reduces tax income with book-tax differ-ences reported on Schedule M-3 (a 27.8 percentreduction in pretax book income for 2010 and a 20.4percent reduction in 2011). However, similar corpo-rations in financial statement type and asset size notrequired to file Schedule UTP (or failing to file)reduce tax income with book-tax differences to arelatively greater extent (a 37.2 percent reduction inpretax income for 2010 and a 40.5 percent reductionin 2011). For 2010 and 2011, 31.7 percent and 36.4percent, respectively, of the SEC 10K/public corpo-rations filed Schedule UTP, while 68.3 percent and63.6 percent, respectively, did not file a ScheduleUTP. The conclusion for corporations with SEC10K/public financial statements with $100 millionor more in assets is that filing Schedule UTP doesnot identify the same tax compliance risks as report-ing Schedule M-3 tax-income-decreasing book-taxdifferences. The further conclusion is that ScheduleUTP supplements, but does not replace, ScheduleM-3 for transparency and return selection for theminority of large corporations with SEC 10K/publicfinancial statements that file Schedule UTP.
D. Conclusions: AuditedThe requirements to file Schedule UTP in 2010
identify a minority group of corporations withaudited financial statements with total assets of$100 million or more that has UTPs and, in aggre-gate, increases tax income with book-tax differencesreported on Schedule M-3. (This group of taxpayershad a 65.1 percent increase to pretax book income.)For 2011, the requirements to file Schedule UTPidentify a minority group of corporations withaudited financial statements with total assets of$100 million or more that has UTPs and, in aggre-gate, reduces tax income with book-tax differencesreported on Schedule M-3 (a 46.9 percent reduction
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in pretax book income). Similar corporations infinancial statement type and asset size not requiredto file Schedule UTP (or failing to file) reduce taxincome with book-tax differences for both 2010 and2011 to a relatively greater or same extent (a 29.8percent reduction in pretax book income for 2010and a 47.6 percent reduction in 2011). For 2010 and2011, 9.4 percent and 9.9 percent, respectively, of theaudited corporations filed Schedule UTP, while 90.6percent and 90.1 percent, respectively, did not file aSchedule UTP. The conclusion for corporations withaudited financial statements with $100 million ormore in assets is that filing Schedule UTP does notidentify the same tax compliance risks as reportingSchedule M-3 tax-income-decreasing book-tax dif-ferences. The further conclusion is that ScheduleUTP supplements, but does not replace, ScheduleM-3 for transparency and return selection for theminority of large corporations with audited finan-cial statements that file Schedule UTP.
E. Conclusions: UnauditedThe requirements to file Schedule UTP in 2010
and 2011 identify a minority group of corporationswith unaudited financial statements with total as-sets of $100 million or more that has UTPs and, inaggregate, increase tax income with book-tax differ-ences reported on Schedule M-3. (This group oftaxpayers had an increase in pretax book income of123.6 percent for 2010 and 81.2 percent for 2011.)Similar corporations in financial statement type andasset size not required to file Schedule UTP (orfailing to file) reduce tax income with book-taxdifferences in 2010 to a relatively greater extent butnot in 2011 (a reduction of pretax income of 64.5percent for 2010 and an increase of 114 percent for2011). For 2010 and 2011, 8 percent and 8.8 percent,respectively, of the unaudited corporations filedSchedule UTP, while 92 percent and 91.2 percent,respectively, did not file a Schedule UTP. The con-clusion for corporations with unaudited financialstatements with $100 million or more in assets isthat filing Schedule UTP does not identify the sametax compliance risks as reporting Schedule M-3tax-income-decreasing book-tax differences. Thefurther conclusion is that Schedule UTP supple-ments, but does not replace, Schedule M-3 fortransparency and return selection for the minorityof large corporations with unaudited financial state-ments that file Schedule UTP.
II. Schedules M-3 and UTP Background
A. Schedule M-3 OverviewTaxpayers prepare corporate and partnership tax
returns by adjusting amounts from their financialstatements or books and records. The goal of theSchedule M-3 reconciliation is to increase taxpayer
transparency to the IRS regarding the adjustments(book-tax differences) made to financial statementsor books and records in preparing the tax returnand to assist the IRS in selecting returns and issuesfor audit only when tax compliance risk is present.
Schedule M-3 was first introduced in 2004 forU.S. corporations with total assets of $10 million ormore filing U.S. income tax return Form 1120. Itreplaced four decades of use of the less-structuredSchedule M-1 for these corporations for the re-quired reconciliation of financial statement incometo tax income.1
A 1999 Treasury report and Treasury testimony in2000 by then-Treasury Assistant Secretary for TaxPolicy Jonathan Talisman viewed the 1990s’ widen-ing difference between the sum of corporate finan-cial statement income (book income) and federalincome tax expense reported on Form 1120, Sched-ule M-1, lines 1 and 2, and tax income reported onForm 1120, page 1, line 28, as a possible indicator ofcorporate tax shelter activity, but also noted thedifficulty in interpreting Schedule M-1 book-taxdifference data.2
Mills and Plesko (2003) proposed a redesign ofSchedule M-1 to increase the transparency of thecorporate book-to-tax reconciliation and to improve
1This report repeats some material from Charles Boynton,Portia DeFilippes, and Ellen Legel (2005, 2006a, 2006b, and2008); Boynton, DeFilippes, Legel, and Todd Reum (2011 and2014); Boynton and William Wilson (2006); and Boynton andBarbara Livingston (2010). Our tax return table values may notadd as a result of rounding. The SOI corporate data file for yeart includes all tax years ending between July of calendar year tand June of calendar year t+1. Effective for tax years ending onor after December 31, 2004, Schedule M-3 replaced ScheduleM-1 for corporations filing Form 1120 and reporting total assetsof $10 million or more on Form 1120, Schedule L. Effective fortax years ending on or after December 31, 2006, for corporationswith total assets of $10 million or more, Schedule M-3 applies toForm 1120S for S corporations, to Form 1120-C for cooperativeassociations, to Form 1120-L for life insurance companies, and toForm 1120-PC for property and casualty insurance companies.Effective for tax years ending on or after December 31, 2006,Schedule M-3 also applies to Forms 1065 and 1065-B forpartnerships with total assets of $10 million or more and tosome other partnerships. Effective for tax years ending on orafter December 31, 2007, a special Schedule M-3 applies to Form1120-F for foreign corporations with effectively connected U.S.income and total assets of $10 million or more. Schedule M-1continues to apply to Form 1120-RIC for regulated investmentcompanies, to Form 1120-REIT for real estate investment trusts,and to all corporations with total assets of less than $10 million.Effective for tax years ending December 31, 2014, and later,corporations and partnerships with $10 million or more inassets but less than $50 million in assets, and partnerships withless than $10 million in assets required to file Schedule M-3,would be permitted to file Schedule M-3, Part I, and to fileSchedule M-1 in place of Schedule M-3, Parts II and III if they sochoose.
2See Treasury Department (1999) and Talisman (2000). Seealso Mills (1998) cited by Treasury (1999, at 32, n.118).
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data interpretability.3 The Mills and Plesko (2003)Schedule M-1 redesign recommendations arelargely reflected in Schedule M-3, particularly inPart I.4
Part I of Schedule M-3 is important and unique intax reporting in that it lists the adjustments made toworldwide consolidated income in the parent cor-poration’s financial statements to determine thebook income of the includable corporations in thetax return.5 We also use Part I data to identify eachcorporation financial statement type as SEC Form10K/public, audited, or unaudited.6
Parts II and III of Schedule M-3 are a morestructured listing of book-tax differences than onSchedule M-1 and specify several fixed categoriesas well as two ‘‘other with difference’’ categories.The fixed categories are machine readable. Thebook income and tax income amounts generatingthe book-tax differences are listed, as well as thebook-tax difference and the name for the line.
On Parts II and III of Schedule M-3, book-taxdifferences are characterized as temporary or per-manent. Temporary differences are items of incomeor expense that are recognized for both financialand tax reporting but appear in different periods.Permanent differences are items of income or ex-pense that are recognized for either financial or taxreporting, but not both.7
Parts II and III contain four columns. Column (a)represents financial statement (book) income orexpense amounts using the financial statementsource determined in Part I. Column (d) representsamounts as shown on the tax return. The book-taxdifference between the amount shown in column (a)and the amount shown in column (d) is reportedeither as a temporary difference amount in column(b) or as a permanent difference amount in column(c).
Note that on Schedule M-3, a negative totalbook-tax difference adjustment occurs if tax incomeis below book income. Further note that in ourstudy, we conform the sign of Part III data to agreewith Part II so that a negative book income or taxincome item always reduces total book income ortax income and a negative book-tax difference re-duces tax income.8
We impose some minimum reconciliation re-quirements on the returns included in our study.9
This is the seventh article in a series by theauthors researching the differences between finan-cial statement income (book income) and tax in-come as reported on U.S. corporate income taxreturns.10 This seventh article analyzes final data for
3See Mills and Plesko (2003) for the proposed redesign ofSchedule M-1.
4For a discussion of the development of Schedule M-3, seeBoynton and Mills (2004).
5A major problem with interpreting Schedule M-1 data in thepast was the fact that the taxpayer was allowed to report astarting Schedule M-1, line 1 book income amount withoutreconciling the reported book income amount to financialaccounting income on the taxpayer’s financial statements.Schedule M-3, Part I, line 11 defines the starting book income forthe book-to-tax reconciliation in Parts II and III. The May 10,2013, IRS notice, effective December 31, 2014, permitting the useof Schedule M-1 by corporations and partnerships with $10million but less than $50 million in assets in place of ScheduleM-3, Parts II and III, requires Schedule M-3, Part I, and requiresthat Schedule M-1, line 1 book income equal Schedule M-3, line11.
6We define SEC Form 10K/public to include any tax returnon which (1) Schedule M-3, Part I, line 1a indicated that an SECForm 10K was filed or (2) Part I, line 3a indicated that thecorporation had publicly traded common stock. Some corpora-tions indicate the first without the second, which may meanpublicly traded debt or a reporting error. Other corporationsreport the second without the first, suggesting a reporting error.We make use of the presence of either indicator. We defineaudited to include any tax return on which Schedule M-3, PartI, line 1b indicates that certified audited financial statementswere prepared and our requirements for SEC Form 10K/publicare not met. We define unaudited to include all other returns.
7Temporary differences are important in tax administrationbecause they may identify that an item is being included in thewrong tax year. For example, deferring the recognition of $1
billion of income for 30 years (or accelerating the recognition of$1 billion of deductions by 30 years) involves a substantial timevalue of money change in the value of the tax due. In contrast totemporary differences, permanent differences are adjustmentsthat arise as a result of fundamental permanent differences infinancial and tax accounting rules. These differences result fromtransactions that will not reverse in subsequent periods. Infinancial statement reporting under generally accepted account-ing principles, permanent differences are not considered in theFinancial Accounting Standard No. 109 (ASC Topic 740) com-putation of deferred tax assets and liabilities but do have adirect impact on the effective tax rate. Therefore, permanentdifferences can substantially influence reported financial earn-ings per share computations, and, for public companies, stockprices. Accordingly, permanent differences of a given size mayrepresent a greater audit risk than temporary differences of thesame size.
8See Section II.C of this report for a discussion of signconventions.
9Some companies with assets of less than $10 million volun-tarily filed Schedule M-3. We do not analyze that data. Ourminimum reconciliation tests require Schedule M-3 data agree-ment within tolerances of 1 percent of the maximum absolutevalue of the amounts on Part II, line 30 for income between PartI, line 11 and Part II, line 30, column (a) and for expenses/deductions between Part III, line 38 (line 36 through 2009) andthe carryover line Part II, line 27. The reconciliations of thesubset of corporations meeting our minimum data and recon-ciliation tests for this 2010 and 2011 Schedule M-3 study with thefull 2010 and 2011 SOI corporate files are presented in Distribu-tion Table D3 of the full Schedule M-3 ‘‘First Look’’ data sets for2010 and 2011 available on request.
10See Boynton, DeFilippes, and Legel (2005, 2006a, 2006b,and 2008); and Boynton, DeFilippes, Legel, and Reum (2011 and2014). The first two articles analyze corporate Form 1120,Schedule M-1 reporting for tax years 1990-2003. The third article
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the 2010 and 2011 corporate Form 1120, ScheduleM-3 with Schedule UTP filing status.
B. Schedule M-3 Versus Schedule UTPSchedule M-3 was introduced in 2004 for corpo-
rations with assets of $10 million or more to assistthe IRS in reconciling financial statement income totax income, including identifying temporary andpermanent book-tax differences. Taxpayers preparecorporate and partnership tax returns by adjustingamounts from their financial statements. The goal isto increase taxpayer transparency regarding theadjustments made to the financial statements toprepare the tax return. Many of the items that mustbe listed on Schedule UTP generate or affect book-tax differences that must be included on ScheduleM-3. Schedule M-3 reports dollar amounts; Sched-ule UTP does not.
Schedule UTP was introduced in 2010 for corpo-rations with assets of $100 million or more withaudited financial statements reporting UTPs in theincome tax footnote and for some related corpora-tions.11 The purpose was to share with the IRS someof the taxpayer information calculated as part ofpreparing the financial statement income tax foot-note.12 The goal was to increase taxpayer transpar-ency regarding items giving rise to federal incometax UTPs in the taxpayer’s financial statements.
Schedule UTP asks for relevant code sections anda concise description of issues, without dollaramounts, for the UTPs that affect the financial-statement-reported U.S. federal income tax liabili-ties of some corporations that issue or are includedin audited financial statements. The corporate assetreporting threshold is assets of $100 million or morein tax years 2010 and 2011, $50 million or more intax years 2012 and 2013, and $10 million or more intax years ending after December 30, 2014.13
Items listed on Schedule UTP relate to amountsor positions reported on other forms or schedules ofthe current tax return or a prior tax return. Many ofthe Schedule UTP items concern the temporary orpermanent book-tax differences reported on Parts IIand III of Schedule M-3. (Note that adjustments canbe made during an examination for amounts re-ported on Part I of Schedule M-3 because of errorsin the calculations of the income or loss of theincludable and excludable entities. However, it isunlikely taxpayers would report a Schedule UTPitem that would relate to whether an entity shouldbe included or excluded from the consolidated taxreturn.) Other Schedule UTP items may concern taxcredit amounts or international issues that are notreported on Schedule M-3 but are instead reportedon the forms and schedules specific to those items(that is, Form 6765, ‘‘Credit for Increasing ResearchActivities,’’ or Form 5471, ‘‘Information Return ofU.S. Persons With Respect to Certain Foreign Cor-porations’’).14
In summary:• Schedule M-3:
• Schedule M-3 is a crosswalk from the tax-payer’s financial statements to its tax return.
• Part I removes the income (loss) of all enti-ties included in the financial statements butnot included in the consolidated tax return,and it adds the income (loss) of all entitiesnot included in the financial statements butincluded in the consolidated tax return.
• Parts II and III require taxpayers to reportthe dollar amounts of the temporary andpermanent adjustments they make to create
in this series analyzes advance file data for the 2004 corporateForm 1120, Schedule M-3. The fourth article analyzes final datafor the 2005 corporate Form 1120, Schedule M-3, and updatesthe prior 2004 report using final 2004 data. The fifth articleanalyzes final data for the 2006 and 2007 corporate Form 1120,Schedule M-3, and earlier Schedule M-1 data from 1994 through2005 and Schedule M-3 data from 2004-2005. The sixth articleanalyzes final data for 2008, 2009, and 2010 corporate Form 1120,Schedule M-3 as well as earlier Schedule M-3 data for 2006 and2007 and information on 2010 Schedule UTP filing status.
11For a discussion of the UTPs reported on Schedule UTPand an analysis of how Schedule UTP reporting requirementsaffect corporate tax and financial reporting behavior, see Towery(2013).
12Footnote reporting of UTPs is required by U.S. GAAPunder FAS No. 109 (ASC 740) and Financial Accounting Stan-dards Board Interpretation No. 48 (ASC 740-10).
13Schedule UTP requires the reporting of each U.S. federalincome tax position taken by an applicable corporation on itsU.S. federal income tax return for which two conditions are
satisfied: (1) the corporation has taken a tax position on its U.S.federal income tax return for the current tax year or for a priortax year; and (2) either the corporation or a related party hasrecorded a reserve for that tax position for U.S. federal incometax in audited financial statements, or the corporation or relatedparty did not record a reserve for that tax position because thecorporation expects to litigate the position. A tax position forwhich a reserve was recorded (or for which no reserve wasrecorded because of an expectation to litigate) must be reportedregardless of whether the audited financial statements areprepared based on U.S. GAAP, international financial reportingstandards, or other country-specific accounting standards, in-cluding a modified version of any of the above (for example,modified GAAP).
14Although Schedule M-3 does not deal with credits, a directcorrelation may exist between an item on Schedule M-3 and acredit. For example, there is a direct correlation between Sched-ule M-3 research and development costs on Part III, line 36,column (d), and credit-eligible expenses on Form 6765, andtherefore with the research credit. Section 41, governing theresearch credit, is the most frequent code section cited in 2010and 2011 on Schedule UTP, Part I. The second most frequentcode section cited is section 482, for transfer pricing.
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their tax return from their financial state-ments as well as the initial book income andfinal tax income amounts for each scheduleditem.
• Schedule UTP:• Schedule UTP reports the federal income tax
UTPs reserved on the taxpayer’s financialstatements for items on the tax return thatthe taxpayer acknowledges the IRS maychallenge.
• Schedule UTP discloses relevant code sec-tions and provides a concise description ofthe UTPs without reporting the dollaramounts.
• Items listed on Schedule UTP may relate tothe amounts reported on Schedule M-3.
• Some items reported on Schedule UTP mayrelate to items not reported on Schedule M-3(that is, tax credit items).15
Schedule M-3 and Schedule UTP are complemen-tary sources of taxpayer transparency that do notoverlap and do not contain duplicative information.Sections V.A to V.D of this report investigate someof the Schedule M-3 characteristics of Schedule UTPfilers and nonfilers. Tables 1A, 1B, 2A, 2B, 4, 5, and6 present additional data on Schedule UTP filersand nonfilers.
C. Book-Tax Differences and SignsBook income is the financial statement income of
the entity filing a corporate or partnership incometax return. For consolidated corporations filing U.S.Form 1120, book income is the consolidated finan-cial statement income of the includable corpora-tions joining in the consolidated tax return and willoften differ from the worldwide consolidated in-come reported by the parent corporation’s world-wide consolidated financial statements. Part I ofSchedule M-3 reconciles worldwide consolidatedfinancial statement income to book income.
We compare pretax book income (book incomemeasured before federal income tax expense) withtax income and calculate book-tax differences aspretax differences, consistent with the book-taxdifference literature since Talisman (2000).16
The book-tax difference literature before the in-troduction of Schedule M-3 defined the sign of thedifference between pretax book income and tax
income as ‘‘book minus tax,’’ resulting in a positivedifference if the book amount is higher than the taxamount. The reconciliation rules of Schedule M-3reverse this prior convention to ‘‘tax minus book.’’
For Schedule M-3, the temporary and permanentadjustment amounts reported in columns (b) and (c)of Parts II and III are the amounts that are added tocolumn (a) book income to determine column (d)tax income. A positive total book-tax difference incolumns (b) and (c) means that the tax amount ishigher than the book amount. A negative totalbook-tax difference in columns (b) and (c) meansthat the tax amount is lower than the book amount.
In our report, the sign of Schedule M-3, Part III,expense/deduction data including book-tax differ-ences has been changed to agree with the effect ofthose expense/deduction items and book-tax differ-ences on net income reported on Part II, line 30. If aPart III expense/deduction item or book-tax differ-ence reduces Part II, line 30 net income, it is shownas a negative amount in our report.17
D. Data SourceA weighted statistical sample of tax return data is
electronically encoded annually by SOI for use bythe Office of Tax Analysis (OTA) and the JointCommittee on Taxation.18 The Office of Planning,Analysis, Inventory, and Research (PAIR) within theLarge Business and International Division also re-ceives a copy of the file.19 The SOI corporate fileincludes Schedule M-1 data and, beginning with the2004 file, Schedule M-3 data. Starting with 2010, theSOI corporate file reports if (1) the taxpayer indi-cates on Form 1120, Schedule K, that Schedule UTPis required; (2) if Schedule UTP, Part I, identifying aUTP is attached to the return with any data; and (3)the number of lines on Schedule UTP, Part I, with
15See supra note 14 (research credits and Schedule M-3).16We calculate total pretax book income and total pretax
temporary and permanent book-tax differences by adding backfederal income tax expense and differences reported on Sched-ule M-3, Part III, lines 1 and 2, columns (a), (b), and (c), to bookincome and differences reported on Schedule M-3, Part II, line30, columns (a), (b), and (c), column by column. Total book-taxdifference is the sum of total temporary and permanent book-tax differences.
17Schedule M-3 instructions require that column (a) bookexpense and column (d) tax deduction amounts that reduce netbook income and reduce net tax income be shown on Part III aspositive amounts. However, some taxpayers fail to follow theinstructions. For a discussion of the problem and how we dealwith it, see Boynton, DeFilippes, and Legel (2006b and 2008);and Boynton, DeFilippes, Legel, and Reum (2011).
18The SOI corporate file is a statistical sample. The record fora smaller tax return (usually measured by total assets) may beweighted to represent more than one tax return. Generally taxreturns for corporations with $50 million or more in assets havea weight of one — that is, the record represents only itself. Therecord for a smaller tax return generally has a weight greaterthan one (for example five), that is, the record represents severalsimilar tax returns (for example, five tax returns). The SOIcorporate data file for year t includes all tax years endingbetween July of calendar year t and June of calendar year t+1.
19Under a formal memorandum of understanding betweenSOI and LB&I, use of the file data by either division is limited toresearch studies. SOI file data is not used for IRS audit casebuilding.
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any data on the line.20 The 2011 SOI corporate filewas issued to OTA, the JCT, and LB&I in October2013.21
Beginning May 2011, researchers using SOI datamust report tax data as an aggregate for a minimumof five taxpayers to protect taxpayer confidential-ity.22 For statistical reasons, SOI prefers that re-ported aggregate data are for 10 or more taxpayerswhen possible.23
E. Limits of Schedule M-3 Data
With the exception of Schedule M-3, Part I,amounts reported on the Form 1120 tax return andSchedule M-3, Parts II and III:
• are limited to the tax information and pretaxbook income information of the includablecorporations in the tax consolidated return;and
• do not include the tax information or pretaxbook income information of the nonincludablecorporations and partnerships (both foreignand domestic) that are included in the world-wide consolidated after-tax income reportedon Schedule M-3, Part I, line 4 (the worldwidebook income reported in the financial state-ments for consolidated book purposes).
The after-tax income of the nonincludable corpo-rations and partnerships are removed in gross after-tax amounts on Schedule M-3, Part I, lines 5 and 6,as one step in determining the book income of theincludable corporations reported on Schedule M-3,Part I, line 11.
Form 1120 tax return and Schedule M-3 data donot yield generalizations about the financial state-ment pretax consolidated worldwide income.Amounts reported on the Form 1120 and ScheduleM-3 do not provide the data needed to calculate thepretax worldwide effective tax rate for the entitiesincluded in the worldwide financial statements.
F. Reconciling Counts of Schedule UTPTable 1A of this report shows a total of 2,074
Form 1120 2011 Schedule UTP filers compared with2,190 reported by the PAIR LB&I UTP registry forthe 2011 form year. The difference is a result of (1)including different corporate income tax returnforms (PAIR counts include Form 1120-F, as well asForm 1120 filed by parents of insurance companies,and this report includes neither); (2) using differenttax year beginning months and ending months for2011 (July 2011 to June 2012 for SOI data versusDecember 2011 to November 2012 for PAIR); (3)using different standards for whether ScheduleUTP is filed (SOI reports the indication on Form1120, Schedule K, that Schedule UTP is required;SOI also counts Schedule UTP as present if anySchedule UTP, Part I ‘‘current year’’ line has anydata; and PAIR requires both Schedule UTP, Parts I‘‘current year’’ or II ‘‘prior year’’ and also Part III‘‘concise descriptions’’);24 and (4) different mini-mum asset recognition thresholds (PAIR includes
20The regular 2010 and 2011 SOI corporate files do nottabulate what is reported on Schedule UTP, Part I, and do notreport if an attached Schedule UTP, Part I, contains relevantdata. A special SOI supplement to each of the regular 2010 and2011 SOI corporate files tabulates the limited information re-ported on Schedule UTP, Part I, lines 1 through 10, for current-year UTPs such as code sections cited, temporary andpermanent effect, whether the position is major, and relativerank of the position. Part II concerning prior-year UTPs, andPart III regarding the concise descriptions for the positionslisted in Parts I and II, are not tabulated by SOI.
21The final SOI corporate file may contain placeholder re-cords representing returns that are unavailable for some reasonwhen the SOI file is issued but are desired by SOI for statisticalpurposes. Placeholder data are commonly the edited return datafrom the prior tax year but may also be current-year data fromthe IRS Business Master File (limited return data tabulated bythe IRS when the return is first received and processed) or datafrom the IRS Employee User Portal. Placeholder returns are notincluded in the Schedule M-3 ‘‘First Look’’ data files.
22Before May 2011, the minimum aggregation requirementfor SOI and for other government agencies was data aggrega-tion for three or more taxpayers or individuals. SOI has in-creased the required minimum for the use of SOI data to five ormore. The change for SOI data applies to tax year 2008 and tonew studies of data from earlier tax years. A data count of zerois permitted. Tests must be performed to ensure that data cannotbe generated by subtraction that would violate the minimumaggregation requirement. For a discussion of the older require-ment of three or more taxpayers or individuals for aggregatedata, see Office of Management and Budget working paper 22(2005); and IRS Publication 1075 (rev. 2007).
23Our tax return table values may not add and may differfrom official 2010 and 2011 SOI values because of rounding. SOIpublications do not include Schedules M-1 or M-3 data. Beforethe publication of Boynton, DeFilippes, and Legel (2005 and2006a), only Plesko (2002) (for 1996-1998) and Plesko-Shumofsky (2005) (for 1995-2001) presented public ScheduleM-1 data for the SOI corporate file population. The year-by-yearreconciliations of the subset of corporations meeting our mini-mum data and reconciliation tests for this 2010 and 2011Schedule M-3 study with the full 2010 and 2011 SOI corporatefiles are presented in Distribution Table D3 of the full ScheduleM-3 ‘‘First Look’’ data set for each year, 2010-2011, available onrequest. Our minimum data and reconciliation tests require thatPart I, line 11 and Part II, line 30, column (a) agree and that PartIII, line 38 and Part II, line 27 agree within 1 percent of themaximum absolute value of the amounts on Part II, line 30.
24The regular 2010 and 2011 SOI corporate files do nottabulate what is reported on Schedule UTP, Part I, and do notreport if an attached Schedule UTP, Part I, contains relevantdata. A special SOI supplement to each of the regular 2010 and2011 SOI corporate files tabulates the limited information re-ported on Schedule UTP, Part I, lines 1 through 10, for current-year UTPs such as code sections cited, temporary andpermanent effect, whether the position is major, and relativerank of the position. Part II relating to prior-year UTPs, and Part
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voluntary filing by a corporation with assets below$100 million, and this report does not).
In particular: (1) 2011 SOI Schedule UTP data isfor Form 1120 tax returns with year ends of July2011 through June 2012; (2) we recognize a corpo-ration as a Schedule UTP filer if SOI recognizes theindication on Form 1120, Schedule K, that ScheduleUTP is required and/or SOI recognizes the presenceof a Schedule UTP, Part I, with any data on any line;(3) we exclude Form 1120 returns if SOI indicatesthat it is the parent of an insurance company andshould be classified as either 1120-L or 1120-PCunder the SOI test that 50 percent or more of thetotal receipts are from life insurance or propertyand casualty insurance; and (4) we exclude volun-tary 2011 Schedule UTP filed by corporations withtotal Schedule L assets of less than $100 million.
III. 2011 Worldwide Income to Tax Less Credits
A. By Asset Size, FS Type, and UTP StatusTables 1A and 1B present 2011 Schedule M-3, Part
I, data and other tax return data for all corporationsmeeting our study requirements filing the Form1120 and for three financial statement types (SECForm 10K/public, audited, and unaudited).25
Figures 1A through 1C highlight the relativemagnitude of several 2011 Schedule M-3 and Form1120 tax return income and adjustment amountsinvolved in moving from worldwide consolidatedfinancial statement income to tax less credits. Datais presented for three financial statement types: SECForm 10K/public, audited, and unaudited.26
In Figure 1A, for 2011, total worldwide consoli-dated financial statement income (reported onSchedule M-3, Part I, line 4) is $867,248 million forSEC Form 10K/public, $63,688 million for audited,and -$110,295 million for unaudited.
Next shown in Figure 1A is the adjustment toremove nonincludable foreign net income (reportedon Schedule M-3, Part I, line 5). The 2011 adjust-ment is -$748,596 million for SEC Form 10K/public,-$22,616 million for audited, and -$5,223 million forunaudited.27
Data for the following 2011 Schedule M-3, Part I,adjustments are not shown in Figure 1A and are notincluded in tables 1A and 1B28:
• the adjustment to remove nonincludable U.S.net income (reported on Schedule M-3, Part I,line 6);29
• the adjustment to include the net income ofother includable entities (reported on ScheduleM-3, Part I, line 7);30
III relating to the concise descriptions for the positions listed inParts I and II, are not tabulated by SOI.
25Some companies with assets of less than $10 millionvoluntarily filed Schedule M-3. We do not analyze that data.Our minimum reconciliation tests require Schedule M-3 dataagreement within tolerances of 1 percent of the maximum
absolute value of the amounts on Part II, line 30 for incomebetween Part I, line 11 and Part II, line 30 column (a) and forexpenses/deductions between Part III, line 38 and the carryoverline Part II, line 27. The year-by-year reconciliations of thesubset of corporations meeting our minimum data and recon-ciliation tests for this 2010-2011 Schedule M-3 study with the full2010-2011 SOI corporate files are presented in Distribution TableD3 of the full Schedule M-3 ‘‘First Look’’ data set for each year,2010-2011, available on request.
26See supra note 6, regarding the definitions of SEC Form10K/public, audited, and unaudited.
27The adjustment to remove positive nonincludable foreignnet income from worldwide financial statement income isshown as a negative amount on Schedule M-3, Part I in thecalculation of the book income of includable corporations. Theincome must be removed from worldwide financial statementincome in the calculation of the book income of includablecorporations because foreign subsidiaries owned more than 50percent, and some foreign partnerships are includable in world-wide consolidated financial statements, but only U.S. corpora-tions owned more than 80 percent are includable in the U.S. taxconsolidated group tax return.
28Data for 2006-2010 for all of the items are reported in tables1A through 1D of Boynton, DeFilippes, Legel, and Reum (2014).
29The adjustment to remove positive nonincludable U.S. netincome from worldwide financial statement income would beshown as a negative amount. U.S. subsidiaries owned morethan 50 percent and some U.S. partnerships are includable inworldwide consolidated financial statements, but only U.S.corporations owned 80 percent or more are includable in theU.S. tax consolidated group tax return.
30Other includable entities are U.S. subsidiaries owned 80percent or more and some disregarded entities (if owned by any
For 2011UTP registry for Dec. 2011-Nov. 2012 2,190Remove Form 1120-F -22Subtotal Form 1120, 1120-L, 1120-PC forDec. 2011-Nov. 2012
2,168
Remove Form 1120 for July 2012-Nov. 2012 -217Subtotal Form 1120, Form 1120-L, Form1120-PC for Dec. 2011-June 2012
1,951
Add Form 1120 for July 2011-Nov. 2011 +245Subtotal Form 1120, Form 1120-L,Form 1120-PC for July 2011-June 2012
2,196
Add Form 1120 identified by SOI UTP flagNOT in registry
+75
Form 1120+Form 1120-L+Form 1120-PC UTPidentified by SOI UTP flag for July 2011-July2012
2,271
Remove deemed Form 1120-L and Form1120-PC identified by SOI
-111
Form 1120 UTP identified by SOI UTP flag forJuly 2011-June 2012
2,160
Remove Form 1120 for July 2011-June 2012with assets below $100 million
-86
Total Form 1120 for July 2011-June 2012identified by SOI UTP flag with assets of $100million or more
2,074
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• the adjustment to financial statement consoli-dation eliminations (reported on Schedule M-3,Part I, line 8) because of the removal of the netincome of foreign and U.S. nonincludable cor-porations and partnerships and the inclusionof the net income of other includable entities;31
• the adjustment to income because of differ-ences in financial statement year and tax year(reported on Schedule M-3, Part I, line 9);
• other adjustments (reported on Schedule M-3,Part I, line 10) required to determine the netincome of includable corporations (book in-come); and32
• the net income of includable corporations(book income) (reported on Schedule M-3, PartI, line 11).33
Shown last in Figure 1A is pretax book income.Pretax book income is $878,771 million for SECForm 10K/public, $92,621 million for audited, and-$92,114 million for unaudited.34
The first item in Figure 1B is pretax book income,repeating the last item in Figure 1A.
Next shown in Figure 1B is the adjustment for nettemporary book-tax difference followed by the ad-justment for net permanent book-tax difference. Nettotal book-tax difference is the sum of net tempo-rary book-tax difference and net permanent book-tax difference. A negative book-tax differencereduces tax net income compared with pretax book
of the includable corporations) for some reason not included inthe worldwide consolidated financial statements and thereforenot included on Schedule M-3, Part I, line 4.
31Those adjustments include the restoration of specific divi-dends, minority interests, and equity method income eliminatedin the consolidation for worldwide consolidated financial state-ments income.
32These adjustments include adjustments required betweenGAAP and statutory accounting when subsidiaries are insur-ance companies.
33Book income on Schedule M-3, Part I, line 11 is the bookanchor for the Schedule M-3 book-to-tax reconciliation in PartsII and III. Tax net income on Form 1120, page 1, line 28 is the taxanchor.
34For our analysis, consistent with the book-tax differenceliterature since Talisman (2000), we adjust book income topretax book income by reversing the recognition of federalincome tax expense (reported on Schedule M-3, Part III, lines 1and 2) and calculate book-tax differences as pretax differences.The adjustment of book income to pretax book income permitsa consistent comparison with tax return income. See our discus-sion of pretax income, book-tax differences, and signs in SectionII.C.
Figure 1A. 2011 U.S. Corp. Schedule M-3: Worldwide Income to Pretax Book Income
-$800,000
-$600,000
-$400,000
-$200,000
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
Worldwide Income Nonincludable Foreign Income Pretax Book Income
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income. A positive book-tax difference increases taxnet income compared with pretax book income.
The net temporary book-tax difference is-$202,588 million for SEC Form 10K/public,-$54,477 million for audited, and $106,629 millionfor unaudited. The net permanent book-tax differ-ence is -$5,315 million for SEC Form 10K/public,$9,707 million for audited, and $32,416 million forunaudited.
Not shown are the adjustments to Form 1120,page 1, line 4 dividend income and line 28 tax netincome made by SOI to remove intercompany divi-dends and the adjustment to correct other Form1120, page 1 reporting errors affecting line 28 tax netincome.35
Tax net income is the last item in Figure 1B andthe first item in Figure 1C. It is $637,691 million forSEC Form 10K/public, $45,882 million for audited,and $32,300 million for unaudited.
The next item shown in Figure 1C is total positivetax net income — that is, the total tax net income ofcorporations not reporting a loss on Form 1120,page 1, line 28. Loss corporations are not subject tothe regular corporate income tax. Positive tax netincome is $776,399 million for SEC Form 10K/public, $117,093 million for audited, and $114,147for unaudited.
Not shown in Figure 1C are36:• the Form 1120, page 1, line 29a, net operating
loss deduction using prior-year losses to re-duce current taxable income;37 and
• the adjustment for special deductions (divi-dend received deductions) on Form 1120, page1, line 29b (which reduces taxable income).
The next item shown is Form 1120, page 1, line 30taxable income. It is $700,876 million for SEC Form
35Data for 2006-2010 are reported in tables 1A through 1D ofBoynton, DeFilippes, Legel, and Reum (2014). Some taxpayersimproperly include intercompany dividend (ICD) in tax netincome on Form 1120, page 1, line 28, the reconciliation targetfor Schedule M-3. The taxpayer then removes the same ICDamount as a 100 percent dividends received deduction on line29b so that it does not increase final income subject to tax on line30. On the SOI corporate file, SOI removes all ICD that itidentifies from Form 1120 data, including from page 1, line 28,regardless of whether the tax consolidation group contains aninsurance company subsidiary. See the discussion of the historyof ICD editing by SOI for 1990-2003 tax years in Boynton,DeFilippes, and Legel (2005 and 2006a); and Boynton, DeFil-ippes, Legel, and Reum (2011 and 2014). Note that changes on
the SOI corporate file do not change the amounts on the taxreturn and do not affect IRS audits (or lack of audits) forcorporate tax returns.
36Data for 2006-2010 for all the items are reported in tables1A through 1D of Boynton, DeFilippes, Legel, and Reum (2014).
37The adjustment for the NOL deduction would be shown asnegative because the adjustment reduces taxable income.
Figure 1B. 2011 U.S. Corp. Schedule M-3: Pretax Book Income to Tax Net IncomeD
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-$800,000
-$600,000
-$400,000
-$200,000
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
Pretax Book Income Pretax TemporaryDifference
Pretax PermanentDifference
Tax Net Income
SEC Form 10K/Public UnauditedAudited
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10K/public, $101,086 million for audited, and$92,590 million for unaudited.
Not shown is U.S. federal corporate income taxbefore credits.38
The next-to-last item shown is foreign tax creditsof -$104,882 million for all corporations, -$94,412million for SEC Form 10K/public, -$5,769 millionfor audited, and -$4,701 million for unaudited.39
Missing from Figure 1C are adjustments for thegeneral business credit and other credits reducingtaxes due.40
In Figure 1C, the last item is tax less credits of$137,090 million for SEC Form 10K/public, $27,160million for audited, and $26,506 million for unau-dited.
Figure 2 expands on the 2011 analysis of pretaxbook income to tax net income first shown in Figure1B and its focus on the corporations with $100million or more in assets — that is, the study
population potentially subject to filing ScheduleUTP for 2011. Figure 2 and tables 1A and 1B presentdata for Schedule UTP filers and nonfilers by finan-cial statement type.
Tables 1A and 1B present distribution table datafor 2011 for the 41,636 corporations in this studywith rows for asset size, financial statement type,return type, and the presence or absence of Sched-ule UTP.41 The columns are key tax return andSchedule M-3 variables. For Table 1A, they are:number of returns, Schedule L total assets, world-wide income, nonincludable foreign income, pretaxbook income, and tax net income. For Table 1B, theyare: pretax temporary book-tax difference; pretaxpermanent book-tax difference; positive tax netincome, taxable income, FTC, and U.S. corporateincome tax less credits.42
Tables 1A and 1B have two columns of percent-ages following each amount, giving first the per-centage of the total for all 41,636 corporationsrepresented by that row amount, and second the
38Data for 2006-2010 are reported in tables 1A through 1D ofBoynton, DeFilippes, Legel, and Reum (2014).
39The adjustment for FTC is shown as negative because theadjustment reduces the U.S. income tax that is owed. FTCreduces U.S. income taxes, within limits, for income taxes paidto foreign countries on income earned outside the United Statesbut included in U.S. taxable income.
40Data for 2006-2010 are reported in tables 1A through 1D ofBoynton, DeFilippes, Legel, and Reum (2014).
41See Sections III.A, III.B, V.A to V.D, and tables 2A, 2B, 4, 5,and 6 for additional data on Schedule UTP filers and nonfilers.
42Nonincludable foreign income is shown as negative inTable 1A because it is the foreign income that must be removedfrom worldwide income in determining book income for theU.S. tax consolidated group. FTC is shown as negative in Table1B because it reduces the U.S. income tax that is owed.
Figure 1C. 2011 U.S. Corp. Schedule M-3: Tax Net Income to Tax Less CreditsD
oll
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-$800,000
-$600,000
-$400,000
-$200,000
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
Tax Net Income Positive TaxNet Income
Taxable Income FTC Tax Less Credits
SEC Form 10K/Public Audited Unaudited
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percentage of the total for the subgroup of rows inwhich the row is included, represented by that rowamount.
The data in tables 1A and 1B highlight therelative importance to the U.S. corporate tax systemof very large corporations, corporations that arepublicly held and file with the SEC, and so-calledmixed groups (tax consolidated groups with a non-insurance parent and one or more insurance sub-sidiaries). The study data for 2011 include 41,636corporations that file Schedule M-3, including12,307 corporations (30 percent) with total assets of$100 million or more that are potentially subject tofiling Schedule UTP.
The 2,751 corporations (7 percent) with $1 billionor more in assets report 92 percent of the assets, 95percent of the worldwide income, 97 percent of thenonincludable foreign income, 95 percent of pretaxbook income, 82 percent of the net negative (tax-income-reducing) temporary book-tax differences,70 percent of the net positive permanent book-taxdifferences, and 83 percent of the tax less credits forthe 41,636 corporations. The 4,488 corporations (11percent) with SEC Form 10K/public financial state-ments report 74 percent of the assets, 106 percent ofthe worldwide income, 96 percent of the non-includable foreign income, 100 percent of pretaxincome, 135 percent of the net negative temporary
book-tax differences, net negative permanent book-tax differences equal to -14 percent of the aggregatenet positive permanent book-tax differences, and 72percent of the tax less credits. The 420 corporations(1 percent) that are mixed groups report 46 percentof the assets, 32 percent of the worldwide income,55 percent of the nonincludable foreign income, 31percent of pretax book income, net positive tempo-rary book-tax differences equal to -30 percent of theaggregate net negative temporary book-tax differ-ences, net negative permanent book-tax differencesequal to -82 percent of the aggregate net positivepermanent book-tax differences, and 31 percent ofthe tax less credits.
In contrast with the above, the 24,012 corpora-tions (58 percent) with assets of $10 million or morebut less than $50 million report only 1 percent oftotal assets, an aggregate financial statement netloss representing less than 1 percent of worldwideincome, and 3 percent of tax less credits.43 The 5,317corporations (13 percent) with assets of $50 million
43Effective for tax years ending December 31, 2014, and later,corporations and partnerships with $10 million or more inassets but less than $50 million in assets and those partnershipswith less than $10 million in assets required to file Schedule M-3
Figure 2. 2011 U.S. Corp. Schedule M-3: Pretax Book Income to Tax Net Income: FS Type by UTP Status
Doll
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-$200,000
-$100,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Pretax BookIncome
Pretax TemporaryDifference
Pretax PermanentDifference
Tax Net Income
SEC Form 10K/Public With UTP
SEC Form 10K/Public Without UTP
Audited WithUTP
Audited WithoutUTP
UnauditedWith UTP
Unaudited WithoutUTP
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or more but less than $100 million report only 1percent of total assets, an aggregate financial state-ment net profit representing less than 1 percent ofworldwide income, and 2 percent of tax less credits.Corporations with assets of $50 million or more butless than $100 million are potentially subject tofiling Schedule UTP starting in 2012. Corporationswith assets of $10 million or more but less than $50million are potentially subject to filing ScheduleUTP starting in 2014.
The 12,307 corporations (30 percent) with assetsof $100 million or more in 2011 are potentiallyrequired to file Schedule UTP. They report 98 per-cent of assets, approximately 100 percent of netaggregate worldwide income, 99 percent of thenonincludable foreign income, approximately 100percent of net aggregate pretax book income, 95percent of the net negative temporary book-taxdifferences, 90 percent of the net positive perma-nent book-tax differences, and 95 percent of tax lesscredits for the 41,636 corporations.
The 2,074 corporations (5 percent) with assets of$100 million or more that filed Schedule UTP report70 percent of assets, 94 percent of worldwide in-come, 90 percent of the nonincludable foreign in-come, 91 percent of pretax book income, 108 percentof the net negative (tax-income-reducing) tempo-rary book-tax differences, 12 percent of the netpositive (tax-income-increasing) permanent book-tax differences, and 66 percent of tax less credits forthe 41,636 corporations.
In contrast, the 10,233 corporations (25 percent)with assets of $100 million or more that did not fileSchedule UTP (were not required to file or failed tofile) report 28 percent of assets, 6 percent of world-wide income, 9 percent of nonincludable foreignincome, 9 percent of the pretax book income, netpositive temporary book-tax differences equal to -12percent of the net negative temporary book-taxdifferences, 77 percent of the net positive perma-nent book-tax differences, and 29 percent of tax lesscredits for the 41,636 corporations.
B. By Industry and UTP StatusTables 2A and 2B present distribution table data
for 2011, with rows for 19 major industries andSchedule UTP filing status for 12,307 corporationswith $100 million or more in assets.44 The columns
are key tax return and Schedule M-3 variables:number of returns, Schedule L total assets, world-wide income, nonincludable foreign income, pretaxbook income, pretax temporary book-tax difference,pretax permanent book-tax difference, and U.S.corporate income tax less credits.45 Subtotals arepresented for manufacturing, finance/holding, andother.46
Tables 2A and 2B have two columns of percent-ages following each row amount, giving first, thepercentage of the total for all 12,307 corporationsrepresented by that row amount, and second, thepercentage of the total for the industry withinwhich the row is included, represented by that rowamount.
The rate of filing Schedule UTP by the 12,307corporations with assets of $100 million or morediffers greatly by industry. In manufacturing, 908(34 percent) file Schedule UTP and 1,802 (66 per-cent) do not. In finance/holding, 189 (4 percent) fileand 4,678 (96 percent) do not. In other, 976 (21percent) file and 3,753 (79 percent) do not.
The 908 manufacturing corporations filingSchedule UTP report 18 percent of assets for the12,307 corporations with $100 million or more inassets, 54 percent of the worldwide income, 69percent of nonincludable foreign income, 44 percentof pretax book income, 28 percent of the net nega-tive temporary book-tax differences, 44 percent ofthe net positive permanent book-tax differences,and 28 percent of the tax less credits. In contrast, the1,802 manufacturing corporations that do not fileSchedule UTP report 9 percent of the worldwideincome of the 12,307 corporations, 6 percent of theforeign nonincludable income, and 13 percent of thenet negative permanent book-tax differences.
The 189 finance/holding corporations filingSchedule UTP report a disproportionate 41 percentof assets for the 12,307 corporations with assets of$100 million or more but only 12 percent of tax less
would be permitted to file Schedule M-3, Part I, and to fileSchedule M-1 in place of Schedule M-3, Parts II and III, if theyso choose.
44The industries listed in tables 2A-2B are listed in SOIpublications in the following industries, major codes, and sectorcodes: Petroleum Refineries: Ind. 324110; Pharmaceuticals: Ind.325410; Computers/Electronics: Major code 334; ElectricalEquipment: Major code 335; Transportation Equipment: Major
code 336; Fabricated Metal and Machinery: Major codes 332 and333; Food/Beverage Mfg: Major codes 311 and 312; OtherManufacturing: Major codes 313, 315, 316, 321, 322, 323, 325, 326,327, 331, 337, 339, and Ind. 325125; Non-Bank Holding Com-pany: Ind. 551112; Bank and Bank Holding Company: Ind.551111, and Major code 521; Securities/Commodities: Majorcode 523; Other Financial: Major codes 522, 524, 525, and Sectorcode 53; Trade: Sector code 41; (N) Information: Sector code 51;Utilities: Sector code 22; Transport/Warehousing: Sector code48; Mining: Sector code 21; Construction: Sector code 23; andService/Agriculture/Other: the remainder of the industries notlisted above.
45Nonincludable foreign income is shown as negative inTable 2A because it is the foreign income that must be removedfrom worldwide income in determining book income for theU.S. tax consolidated group.
46See Sections III.A, III.B, V.A to V.D, and tables 1A, 1B, 4, 5,and 6 for additional data on Schedule UTP filers and nonfilers.
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credits, 10 percent of worldwide income, 5 percentof nonincludable foreign income, 16 percent ofpretax book income, 6 percent of net negative(tax-income-reducing) temporary book-tax differ-ences, and -87 percent of net negative permanentbook-tax differences.
The 976 other non-manufacturing, nonfinancialcorporations filing Schedule UTP report 8 percent ofthe assets for the 12,307 corporations, 13 percent ofworldwide income, 29 percent of nonincludableforeign income, 30 percent of pretax book income,30 percent of tax less credits, 78 percent of netnegative temporary book-tax differences, and netpositive (tax-income-increasing) permanent book-tax differences equal to 56 percent of the net posi-tive permanent book-tax differences of the 12,307corporations.
IV. 2010 and 2011 Adjusted Mini M-3
A. Mini M-3: Specified Versus Other LinesThe ‘‘other with difference’’ lines on Schedule
M-3 with book-tax differences are Part II, line 25and Part III, line 37. The ‘‘other with no difference’’line is Part II, line 28. In two prior studies in thisseries, we noted both the large dollar magnitude ofthe book income, tax income, and book-tax differ-ence amounts reported on the ‘‘other with differ-ence’’ lines and the documentation problems foundon the lines.47
We use a Mini M-3 format to compare the aggre-gate amounts reported on the Schedule M-3, Parts IIand III, ‘‘other with difference’’ or ‘‘other with nodifference’’ lines with the aggregate amounts re-ported on the Schedule M-3, Parts II and III, ‘‘speci-fied’’ lines — that is, the lines with specificcaptions.48
A Schedule M-3 COGS adjustment discussed inthe next section is used to remove the cost ofsecurities, commodity contracts, and other financialproducts reported in COGS by some corporationsand to reconcile the COGS amount reported by theSOI corporate data file. The Mini M-3 format also
makes related special adjustments to ‘‘other incomewith difference’’ and ‘‘other items with no differ-ence’’ lines and separates the ‘‘adjusted other itemswith no difference’’ line into ‘‘other income with nodifference’’ and ‘‘other expense/deduction with nodifference’’ lines.
After making the data adjustments, the Mini M-3format has 10 categories of ‘‘specified’’ lines, ‘‘otherwith difference’’ or ‘‘other with no difference’’ lines,and subtotals or totals49:
• other income with no difference (Part II, line 28adjusted) (gross receipts);
• COGS (Part II, line 17 adjusted);• adjusted gross profit;• specified income (Part II, lines 1-16, 18-24, and
29a-29c);• other income with difference (Part II, line 25
adjusted);• adjusted total income;• specified expense/deduction (Part III, lines
3-36);50
• other expense/deduction with difference (PartIII, line 37);
• other expense/deduction with no difference(an adjustment to Part II, line 28); and
• pretax book income.We use the adjusted total book income amount as
a common-size scaling factor and compare percent-ages of adjusted total book income to remove orminimize the impact of differences in the size ofcorporations from our analysis. Also, in comparingthe Schedule M-3 characteristics of Schedule UTPfilers and nonfilers for the three financial statementtypes, total pretax income book-tax difference isexpressed as a percentage of total pretax bookincome.
B. COGS and Other AdjustmentsWe make a Schedule M-3 COGS adjustment for
the Mini M-3. The adjustment reconciles the Sched-ule M-3 COGS tax income amount with Form 1120,page 1, line 2 COGS reported by SOI for thecorporations in our study. SOI removes the cost ofsecurities, commodity contracts, and other financialproducts reported in Form 1120, page 1, line 247For discussions of the ‘‘other with difference’’ documenta-
tion by large taxpayers in 2005 and 2007, see Boynton, DeFil-ippes, and Legel (2008); and Boynton, DeFilippes, Legel, andReum (2011).
48Amounts reported on the ‘‘other with difference’’ linesrequire attached documentation. The documentation must sepa-rately state and adequately disclose the book-tax difference forthe line. The ‘‘other items with no difference’’ line has nodocumentation. Reporting on the ‘‘other with difference’’ linesis similar to but more detailed than reporting on Schedule M-1.Both allow descriptions determined by the taxpayer. ScheduleM-1 requires only a description and a book-tax difference.Schedule M-3 requires a description, a book income amount, atemporary book-tax difference amount, a permanent book-taxdifference amount, and a tax income amount.
49In tables 4, 5, and 6, we omit the data for ‘‘adjusted otherincome with no difference’’ and adjusted COGS and start thetable data with adjusted gross profit to save space. All book-taxdifferences in adjusted gross profit are from adjusted COGS.The adjustments we make to COGS are made equally to theunadjusted book amount and tax amount and have no effect onthe book-tax differences.
50We exclude federal income tax expense reported on Sched-ule M-3, Part III, lines 1 and 2 from our pretax analysis. See ourdiscussion of pretax income and book-tax differences in SectionII.C.
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COGS.51 We make the equal adjustments to Part II,line 17 COGS book income and tax income, with theresult that COGS book-tax differences are un-changed. SOI also makes adjustments to Form 1120,page 1, line 1 gross receipts to match the amountsSOI removes from COGS. We match our COGSadjustments with adjustments to other income withdifference and to other items with no difference. Wealso separate the adjusted other items with nodifference into other income with no difference andother expense/deduction with no difference.52
SOI has adjusted Form 1120, page 1, line 1 grossreceipts and line 2 COGS, Schedule A COGS, andSchedule L inventory amounts since the 1980s toremove the cost of securities and commoditiestransactions. SOI-adjusted COGS, gross receipts,and inventory amounts are used by the Bureau ofEconomic Analysis for national income accounts. Atthe OTA’s request, SOI has not adjusted ScheduleM-3 data since its introduction in 2004.
We wish to develop a consistent Schedule M-3measure of total book income before expenses toscale or common-size book income and tax incomecomponents and book expense and tax deductioncomponents for different size corporations. Adopt-ing the SOI adjustments to COGS and gross receiptsfacilitates the development of a consistent measureof total income applicable to different size corpora-tions.53
As shown in Table 3, we adjust 2011 ScheduleM-3 COGS by approximately $41 trillion to agreewith the SOI Form 1120, page 1, line 2 COGS. Indoing so, we need to determine where on ScheduleM-3 to make the matching gross receipts adjust-ment. Using 2010 data, we developed a rule toallocate the matching gross receipts reduction be-tween Schedule M-3, Part II, line 25 other incomewith difference and line 28 other items withoutdifference. We verified our rule on the 2010 datausing the top 25 returns which, for 2010, accountedfor 99 percent of the aggregate adjustment of ap-
proximately $32 trillion.54 Also, for 2011, we com-pare the Form 1120, page 1, line 27 total deductionamount with the total Part III deduction amountcarried over to Part II as reported on Part II, line 27,column (d) to determine the ‘‘total deductions withno difference’’ amount currently included in Part II,line 28 other items with no difference. The amountsof the four adjustments are shown in Table 3.55
Of the 41,636 Schedule M-3 returns in our studyfor 2011, 25,078 reported COGS on Part II, line 17.The total COGS adjustment for 2011 is $41,308,853million. The details of the adjustment are shown inTable 3 and Figure 3. The adjustments do not affectpretax net income and do not affect book-tax differ-ences. Book-tax differences are unaffected by theCOGS and other adjustments described in thissection of the report because equal adjustments aremade to book income and tax income amounts.
Table 3 shows the aggregate amounts of the threeCOGS adjustments and the one ‘‘other expense/deduction with no difference’’ adjustment for allcorporations in our study and by financial state-ment type. The adjustments are largely to SEC Form10K/public. The adjustments do not affect pretaxnet income or book-tax differences.
We use the adjusted book income and tax incomeamounts in our Mini M-3 analysis in Sections V.Bthrough V.D and scale by adjusted total incomebook amount the sum of the ‘‘adjusted other incomewith no difference,’’ ‘‘adjusted COGS,’’ ‘‘specifiedincome,’’ and ‘‘adjusted other income with differ-ence’’ amounts.
51Note that changes on the SOI corporate file do not changethe amounts on the tax return and do not affect IRS audits (orlack of audits) for corporate tax returns.
52We have introduced adjustment lines into our 2010 Sched-ule M-3 ‘‘First Look’’ form tables to show the frequency ofadjustment and the amounts needed to reconcile Schedule M-3,Part II, line 17 COGS to the SOI amount reported for Form 1120,page 1, line 2.
53Aggregate unadjusted book income and tax income re-ported on Schedule M-3, Part II, line 26 for all corporations areboth negative because the large absolute amount of COGS for allcorporations on Part II, line 17 exceeds the income reported onthe ‘‘specified income’’ lines and the ‘‘other income with differ-ence’’ lines combined. A majority of gross receipts are reportedon Part II, line 28, ‘‘other items with no difference.’’
54See Boynton, DeFilippes, Legel, and Reum (2014).55Our allocation rule:ADJ COGS1 and ADJ COGS2: If the absolute value ofP2L17 column D COGS is greater than Form 1120, page 1,line 2 COGS, the excess difference is the COGS adjust-ment and the matching gross receipts adjustment. Theadjustments reduce the absolute magnitude of P2L17,P2L25, and P2L28.ADJ COGS1: The gross receipts adjustment is applied toP2L25 other income with difference if P2L25D otherincome with difference is greater than P2L28D otherincome without difference AND P2L25D is greater than80 percent of the gross receipts adjustmentELSE useADJ COGS2: The gross receipts adjustment goes toP2L28 other income without difference.ADJ COGS3: If the absolute value of P2L17 column (d)COGS is less than 1120, page 1, line 2 COGS, the adjust-ment is an increase to P2L17 and P2L28 in absolutemagnitude.ADJ EXPDED: We estimate expenses/deduction withoutdifferences as the amount if any by which Form 1120,page 1, line 27 total deductions exceed the absolute valueof P2L27 column (d). We show it as an additionalexpense/deduction line and as an increase to P2L28. Theadjusted P2L28 amount changes from ‘‘other items with-out difference’’ to ‘‘other income without difference.’’
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V. Analysis of Mini M-3
A. Mini M-3 by FS Type by UTP Status
Sections V.B through V.D, tables 4, 5, and 6, andfigures 4, 5, and 6 present adjusted 2010 and 2011data for adjusted gross profit, specified income,adjusted income with difference, adjusted total in-come, specified expense/deduction, other expense/deduction with difference, other expense deductionwith no difference, and pretax book income forbook income, tax income, and temporary and per-manent book-tax difference amounts by financialstatement type (SEC Form 10K/public, audited,and unaudited) further partitioned by the presenceor absence of Schedule UTP.56 The Mini M-3 formatsin tables 4 through 6 do not show the ‘‘adjustedincome with no difference’’ line and the ‘‘adjustedCOGS’’ line but do show the ‘‘adjusted gross profit’’
line resulting from the two omitted lines.57 Allbook-tax differences reported on the ‘‘adjustedgross profit’’ line are from the ‘‘adjusted COGS’’ lineand, when relevant, are discussed as COGS book-tax differences.
The analysis of Schedule UTP filing status islimited to corporations in the study reporting totalassets of $100 million or more, the total assetthreshold in 2011 for Schedule UTP to potentiallyapply. Schedule UTP asks for relevant code sectionsand a concise description of issues, without dollaramounts, for the UTPs that affect the financialstatement-reported U.S. federal income tax liabili-ties of specified corporations that issue or are in-cluded in audited financial statements.58
The first five data columns in tables 4 through 6are book income, temporary difference, permanentdifference, tax income, and total difference in mil-lions of dollars. The next five columns express thefirst five columns as percentages of the book
56The SAS computer code we use for indicating the presenceor absence of UTP filing is as follows:
/*Flag any indication of UTP */HAS_UTP = 0;IF (SCHUTP_REQ_IND = 1) OR (SCHUTP_CD = 1) OR(NUM_SCHUTP > 0) THEN HAS_UTP=1;HAS_UTP3 = HAS_UTP;IF TOT_ASSTS < 100000 THEN HAS_UTP3=0; /* if assetsunder 100m */.We are using UTP3, which does not recognize volunteer
filings by corporations with total assets of less than $100 million.
57The data for the omitted ‘‘adjusted income with no differ-ence’’ and ‘‘adjusted COGS’’ lines in tables 4, 5, and 6 areavailable on request.
58See Section II.B for a discussion of Schedule UTP require-ments. See Section II.F for a reconciliation of the 2011 ScheduleUTP count we present with the PAIR LB&I UTP Registry count.See Sections III.A, III.B, V.B to V.D, and tables 1A, 1B, 2A, and 2Bfor additional data on Schedule UTP filers.
Figure 3. 2011 Unadjusted and Adjusted Book Income Amounts
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amount of adjusted total income — our primaryscaling factor to correct for the difference in size ofthe three financial statement types.59 The final threecolumns express temporary difference, permanentdifference, and total difference as percentages ofpretax book income.
Tables 4 through 6 present the 2010-2011 MiniM-3 data for Schedule UTP filers and nonfilers forthe three financial statement types: Table 4 for SECForm 10K/public, Table 5 for audited, and Table 6for unaudited.
Figures 4, 5, and 6 compare the 2010 and 2011temporary book-tax differences, permanent book-tax differences, and total book-tax differences as apercentage of pretax book income for Schedule UTP
filers and nonfilers: Figure 4 for SEC Form 10K/public, Figure 5 for audited, and Figure 6 forunaudited filers.
B. SEC Form 10K/Public Mini M-3
1. 2010. See the first panel of Table 4. Schedule UTPfilers report, in aggregate, a relatively large negativetemporary component for specified income book-tax difference (-2.99 percent) and a relatively largenegative permanent component for other incomewith difference book-tax difference (-1.52 percent),contributing to a relatively large total pretax incomenegative book-tax difference (-4.97 percent) reduc-ing tax income from pretax income book (pretaxincome book 17.88 percent to tax income 12.91percent), a reduction of 27.8 percent.
See the second panel of Table 4. Schedule UTPnonfilers report, in aggregate, a relatively largepositive temporary component for COGS (1.9 per-cent), a relatively large negative permanent compo-nent for specified-income book-tax difference (-3.46percent), a relatively large negative temporary com-ponent for other income with difference book-taxdifference (-2.89 percent), and a relatively largenegative temporary component for specifiedexpense/deduction book-tax difference (-1.94 per-cent), contributing to a relatively large total pretax
59As discussed in Sections IV.A and IV.B, we wish to developa consistent Schedule M-3 measure of total book income beforeexpenses to scale or common size book income and tax incomecomponents and book expense and tax deduction componentsfor different size corporations. Adopting the SOI adjustments toCOGS and gross receipts facilitates development of a consistentmeasure of total income applicable to different size corpora-tions.
Figure 4. 2010-2011 U.S. Corporation M-3: Book-Tax Difference asPercentage of Pretax Book for SEC Form 10K/Public FS by UTP Filing Status
Per
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income negative book-tax difference (-6.23 percent)reducing tax income from pretax income book(pretax income book 16.75 percent to tax income10.52 percent), a reduction of 37.2 percent.
See the last row of the first and second panels ofTable 4, and see Figure 4. Although the pretaxincome negative book-tax difference of the UTPfilers is larger in dollar magnitude than the pretaxincome negative book-tax difference of the nonfilers(UTP filers, -$190,970 million versus UTP nonfilers,-$84,546 million), the nonfiler negative book-taxdifference as a percentage of pretax income bookrepresents a greater tax income reduction (UTPfilers 27.8 percent versus UTP nonfilers 37.2 per-cent).2. 2011. See the third panel of Table 4. Schedule UTPfilers report, in aggregate, a relatively large negativetemporary component for specified income book-tax difference (-2.02 percent), contributing to arelatively large total pretax income negative book-tax difference (-3.64 percent) reducing tax incomefrom pretax income book (pretax income book 17.82percent to tax income 14.18 percent), a reduction of20.4 percent.
See the fourth panel of Table 4. Schedule UTPnonfilers report, in aggregate, a relatively largenegative temporary component for COGS (-1.54percent) and a relatively large negative temporarycomponent for specified expense/deduction book-tax difference (-3.74 percent), contributing to arelatively large total pretax income negative book-tax difference (-4.87 percent) reducing tax incomefrom pretax income book (pretax income book 12.04percent to tax income 7.17 percent), a reduction of40.5 percent.
See the last row of the third and fourth panels ofTable 4, and see Figure 4. Although the pretaxincome negative book-tax difference of the UTPfilers is larger in dollar magnitude than the pretaxincome negative book-tax difference of the nonfilers(UTP filers -$151,180 million versus UTP nonfilers-$58,142 million), the nonfiler negative book-taxdifference as a percentage of pretax income bookrepresents a greater tax income reduction (UTPfilers 20.4 percent versus UTP nonfilers 40.5 per-cent).3. Conclusions: SEC Form 10K/Public. The require-ments to file Schedule UTP in 2010 and 2011 iden-tify a minority group of corporations with SECForm 10K/public financial statements with $100million or more in assets that have both UTPs and,in aggregate, reduce tax income with book-taxdifferences reported on Schedule M-3 (a 27.8 per-cent reduction in pretax book income for 2010 and a20.4 percent reduction in 2011), but similar corpo-rations in financial statement type and asset size notrequired to file Schedule UTP (or failing to file)
reduce tax income with book-tax differences to arelatively greater extent (a 37.2 percent reduction inpretax income for 2010 and a 40.5 percent reductionin 2011). For 2010 and 2011, 31.7 percent and 36.4percent, respectively, of the SEC Form 10K/publiccorporations filed Schedule UTP, while 68.3 percentand 63.6 percent, respectively, did not file a Sched-ule UTP. The conclusion for corporations with SECForm 10K/public financial statements with $100million or more in assets is that filing Schedule UTPdoes not identify the same tax compliance risks asreporting Schedule M-3 tax-income-decreasingbook-tax differences. The further conclusion is thatSchedule UTP supplements, but does not replace,Schedule M-3 for transparency and return selectionfor the minority of large corporations with SECForm 10K/public financial statements that fileSchedule UTP.
C. Audited Mini M-31. 2010. See the first panel of Table 5. Schedule UTPfilers, in aggregate, report a relatively large positivetemporary component for COGS book-tax differ-ence (2.17 percent) reflected in the gross profitsubtotal line, both a relatively large positive tempo-rary component and a relatively large negativepermanent component for specified income book-tax difference (temporary 1.67 percent and perma-nent -1.95 percent), a relatively large negativetemporary component for other income with differ-ence book-tax difference (-2.72 percent), a relativelylarge positive permanent component for specifiedexpense/deduction book-tax difference (1.54 per-cent), and a relatively large positive temporarycomponent for other expense/deduction with dif-ference book-tax difference (3.51 percent), contrib-uting to a relatively large total pretax incomepositive book-tax difference (3.63 percent) increas-ing tax income from pretax income book (pretaxincome book 5.58 percent to tax income 9.21 per-cent), an increase of 65.1 percent.
See the second panel of Table 5. Schedule UTPnonfilers, in aggregate, report a relatively largenegative temporary component for specifiedexpense/deduction book-tax difference (-1.61 per-cent), contributing to a relatively large total pretaxincome negative book-tax difference (-2.08 percent)reducing tax income from pretax income book(pretax income book 6.98 percent to tax income 4.9percent), a reduction of 29.8 percent.
See the last row of the first and second panels ofTable 5 and see Figure 5. The pretax income positivebook-tax difference of the UTP filers is larger indollar magnitude than the pretax income negativebook-tax difference of the nonfilers (UTP filers,$14,406 million versus UTP nonfilers, -$12,621 mil-lion). The filer positive book-tax difference as apercentage of pretax income book represents a tax
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income increase of 65.1 percent, while the nonfilernegative book-tax difference represents a tax in-come decrease of 29.8 percent.2. 2011. See the third panel of Table 5. Schedule UTPfilers, in aggregate, report a relatively large positivetemporary component for COGS book-tax differ-ence (2.12 percent) reflected in the gross profit line,both a relatively large positive temporary compo-nent and a relatively large negative permanentcomponent for specified income book-tax difference(temporary 1.57 percent and permanent -2.31 per-cent), a relatively large negative temporary compo-nent for other income with difference book-taxdifference (-2.35 percent), and both a relatively largenegative temporary component and a relativelylarge positive permanent component for specifiedexpense/deduction book-tax difference (temporary-5.95 percent and permanent 2.3 percent), contrib-uting to a relatively large total pretax income nega-tive book-tax difference (-5.03 percent) decreasingtax income from pretax income book (pretax incomebook 10.72 percent to tax income 5.7 percent), adecrease of 46.9 percent.
See the fourth panel of Table 5. Schedule UTPnonfilers, in aggregate, report a relatively largenegative temporary component for specifiedexpense/deduction book-tax difference (-2.35 per-
cent), contributing to a relatively large total pretaxincome negative book-tax difference (-3.67 percent)reducing tax income from pretax income book(pretax income book 7.73 percent to tax income 4.05percent), a reduction of 47.6 percent.
See the last row of the third and fourth panels ofTable 5 and see Figure 5. The pretax income nega-tive book-tax difference of the UTP filers is smallerin dollar magnitude than the pretax income nega-tive book-tax difference of the nonfilers (UTP filers-$20,909 million versus UTP nonfilers -$22,290 mil-lion). The filer negative book-tax difference as apercentage of pretax income book represents a taxincome decrease of 46.9 percent, while the nonfilernegative book-tax difference represents a slightlylarger tax income decrease of 47.6 percent.3. Conclusions: Audited. The requirements to fileSchedule UTP in 2010 identify a minority group ofcorporations with audited financial statements withtotal assets of $100 million or more that has UTPsand that, in aggregate, increases tax income withbook-tax differences reported on Schedule M-3.(This group of taxpayers had a 65.1 percent increaseto pretax book income.) For 2011, the requirementsto file Schedule UTP identify a minority group ofcorporations with audited financial statements withtotal assets of $100 million or more that has UTPs
Figure 5. 2010-2011 U.S. Corporation M-3: Book-Tax Difference asPercentage of Pretax Book for Audited FS by UTP Filing Status
Per
cen
tage
of
Pre
tax
Book
Inco
me
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
Temporary BTD Permanent BTD Total BTD
Audited UTP-10 Audited Without UTP-10 Audited UTP-11 Audited Without UTP-11
COMMENTARY / SPECIAL REPORT
554 TAX NOTES, November 3, 2014
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ax Analysts 2014. A
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ain or third party content.
and, in aggregate, reduces tax income with book-taxdifferences reported on Schedule M-3 (a 46.9 per-cent reduction in pretax book income). Similarcorporations in financial statement type and assetsize not required to file Schedule UTP (or failing tofile) reduce tax income with book-tax differences forboth 2010 and 2011, respectively, to a relativelygreater or same extent (a 29.8 percent reduction inpretax book income for 2010 and a 47.6 percentreduction in 2011). For 2010 and 2011, 9.4 percentand 9.9 percent, respectively, of the audited corpo-rations filed Schedule UTP, while 90.6 percent and90.1 percent, respectively, did not file a ScheduleUTP. The conclusion for corporations with auditedfinancial statements with $100 million or more inassets is that filing Schedule UTP does not identifythe same tax compliance risks as reporting ScheduleM-3 tax-income-decreasing book-tax differences.The further conclusion is that Schedule UTP supple-ments, but does not replace, Schedule M-3 fortransparency and return selection for the minorityof large corporations with audited financial state-ments that file Schedule UTP.
D. Unaudited Mini M-31. 2010. See the first panel of Table 6. Schedule UTPfilers, in aggregate, report both a relatively large
positive temporary component and a relativelylarge positive permanent component for specifiedincome book-tax difference (temporary 1.85 percentand permanent 3.66 percent) and a relatively largepositive permanent component for specifiedexpense/deduction book-tax difference (1.7 per-cent) contributing to a relatively large total pretaxincome positive book-tax difference (5.98 percent)increasing tax income from pretax income book(pretax income book 4.84 percent to tax income10.81 percent), an increase of 123.6 percent.
See the second panel of Table 6. Schedule UTPnonfilers, in aggregate, report a relatively largenegative permanent component for specified in-come book-tax difference (-3.74 percent) and a rela-tively large negative temporary component forspecified expense/deduction book-tax difference(-1.86 percent) contributing to a relatively large totalpretax income negative book-tax difference (-8.72percent) reducing tax income from pretax incomebook (pretax income book 13.53 percent to taxincome 4.81 percent), a reduction of 64.5 percent.
See the last row of the first and second panels ofTable 6 and see Figure 6. The pretax income positivebook-tax difference of the UTP filers is smaller indollar magnitude than the pretax income negative
Figure 6. 2010-2011 U.S. Corporation M-3: Book-Tax Difference asPercentage of Pretax Book for Unaudited FS by UTP Filing Status
Per
cen
tage
of
Pre
tax
Book
Inco
me
-100%
-50%
0%
50%
100%
150%
Temporary BTD Permanent BTD Total BTD
Unaudited UTP-10 Unaudited Without UTP-10 Unaudited UTP-11 Unaudited Without UTP-11
COMMENTARY / SPECIAL REPORT
TAX NOTES, November 3, 2014 555
(C) T
ax Analysts 2014. A
ll rights reserved. Tax A
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ain or third party content.
book-tax difference of the nonfilers (UTP filers$17,939 million versus UTP nonfilers -$44,055 mil-lion). The filer positive book-tax difference as apercentage of pretax income book represents a taxincome increase of 123.6 percent, while the nonfilernegative book-tax difference represents a tax in-come decrease of 64.5 percent.2. 2011. See the third panel of Table 6. Schedule UTPfilers, in aggregate, report a relatively large positivepermanent component for specified income book-tax difference (4.13 percent), a relatively large nega-tive temporary component for specified expense/deduction book-tax difference (-2.4 percent), and arelatively large positive permanent component forother expense/deduction with book-tax difference(1.58 percent) contributing to a relatively large totalpretax income positive book-tax difference (4.57percent) increasing tax income from pretax incomebook (pretax income book 5.63 percent to tax in-come 10.19 percent), an increase of 81.2 percent.
See the fourth panel of Table 6. Schedule UTPnonfilers, in aggregate, report a relatively largenegative temporary component for specifiedexpense/deduction book-tax difference (-2.87 per-cent) and a relatively large positive temporarycomponent for other expense/deduction withbook-tax difference (26.5 percent) contributing to arelatively large total pretax income positive book-tax difference (26.33 percent) increasing tax incomefrom pretax income book (pretax income book-23.09 percent to tax income 3.23 percent), an in-crease of 114 percent of the absolute value of theloss.
See the last row of the third and fourth panels ofTable 6 and see Figure 6. The pretax income positivebook-tax difference of the UTP filers is smaller indollar magnitude than the pretax income positivebook-tax difference of the nonfilers (UTP filers$14,618 million versus UTP nonfilers $127,298 mil-lion). The filer positive book-tax difference as apercentage of pretax income book represents a taxincome increase of 81.2 percent, while the nonfilerpositive book-tax difference represents a tax incomeincrease of 114 percent.3. Conclusions: Unaudited. The requirements tofile Schedule UTP in 2010 and 2011 identify aminority group of corporations with unauditedfinancial statements with total assets of $100 millionor more that has UTPs and, in aggregate, increasetax income with book-tax differences reported onSchedule M-3 (this group of taxpayers had anincrease in pretax book income of 123.6 percent for2010 and 81.2 percent for 2011). Similar corporationsin financial statement type and asset size not re-quired to file Schedule UTP (or failing to file) reducetax income with book-tax differences in 2010 to arelatively greater extent but not in 2011 (a reduction
of pretax income of 64.5 percent for 2010 and anincrease of 114 percent for 2011). For 2010 and 2011,8 percent and 8.8 percent, respectively, of the unau-dited corporations filed Schedule UTP, while 92percent and 91.2 percent, respectively, did not file aSchedule UTP. The conclusion for corporations withunaudited financial statements with $100 million ormore in assets is that filing Schedule UTP does notidentify the same tax compliance risks as reportingSchedule M-3 tax-income-decreasing book-tax dif-ferences. The further conclusion is that ScheduleUTP supplements, but does not replace, ScheduleM-3 for transparency and return selection for theminority of large corporations with unaudited fi-nancial statements that file Schedule UTP.
E. General ConclusionsThe study presents and compares 2010 and 2011
Schedule M-3 and Form 1120 tax return data pro-files for Schedule UTP filers and nonfilers with $100million or more in assets. It includes 12,044 corpo-rations in 2010 and 12,307 corporations in 2011. In2010 Schedule UTP filers decrease tax income usingSchedule M-3 book-tax differences less, as a per-centage of total pretax book income, than ScheduleUTP nonfilers for all financial statement types (SECForm 10K/public, audited, and unaudited). In 2011Schedule UTP filers decrease tax income usingbook-tax differences less than Schedule UTP nonfil-ers for SEC Form 10K/public financial statementsand decrease tax income no more than nonfilers foraudited financial statements. The authors concludethat filing Schedule UTP does not identify the sametax compliance risks as reporting Schedule M-3tax-income-decreasing book-tax differences. Theyalso conclude that Schedules UTP and M-3 arecomplementary and not duplicative for tax compli-ance risk analysis. Only a minority of large corpo-rations file Schedule UTP while all file ScheduleM-3.
VI. ReferencesBoynton, Charles, Portia DeFilippes, and Ellen Le-
gel, ‘‘Prelude to Schedule M-3: Schedule M-1Corporate Book-Tax Difference Data 1990-2003,’’Tax Notes, Dec. 19, 2005, p. 1579.
Boynton, DeFilippes, and Legel, ‘‘Distribution ofSchedule M-1 Corporate Book-Tax DifferenceData 1990-2003 for Three Large-Size and ThreeIndustry Groups,’’ Tax Notes, Apr. 10, 2006, p. 177[2006a].
Boynton, DeFilippes, and Legel, ‘‘A First Look at2004 Schedule M-3 Reporting by Large Corpora-tions,’’ Tax Notes, Sept. 11, 2006, p. 943 [2006b].
Boynton, DeFilippes, and Legel, ‘‘A First Look at2005 Schedule M-3 Corporate Reporting,’’ TaxNotes, Nov. 3, 2008, p. 563.
COMMENTARY / SPECIAL REPORT
556 TAX NOTES, November 3, 2014
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nalysts does not claim copyright in any public dom
ain or third party content.
Boynton, DeFilippes, Legel, and Todd Reum, ‘‘AFirst Look at 2007 Schedule M-3 Reporting byLarge Corporations,’’ Tax Notes, Aug. 15, 2011, p.689.
Boynton, DeFilippes, Legel, and Reum, ‘‘A FirstLook at 2010 Schedule M-3 Reporting and toSchedule UTP Filing Status,’’ Tax Notes, July 21,2014, p. 253.
Boynton and Barbara Livingston, ‘‘PartnershipsWith Reportable Entity Partners,’’ Tax Notes, Aug.30, 2010, p. 949.
Boynton and Lillian Mills, ‘‘The Evolving ScheduleM-3: A New Era of Corporate Show and Tell?’’ 57Nat’l Tax J. 757 (2004).
Boynton and William Wilson, ‘‘A Review of Sched-ule M-3, The Internal Revenue Service’s NewBook-Tax Reconciliation Tool,’’ 25 Petroleum Acct& Fin. Mgmt J. 1 (2006).
IRS Publication 1075, Tax Information Security Guide-lines for Federal, State, and Local Agencies andEntities (rev. 2007).
Mills, ‘‘Book-Tax Differences and Internal RevenueService Adjustments,’’ 36 J. Acct. Res. 343 (1998).
Mills and George Plesko, ‘‘Bridging the Gap: AProposal for More Informative Reconciling ofBook and Tax Income,’’ 56 Nat’l Tax J. 865 (2003).
Office of Management and Budget, ‘‘Report onStatistical Disclosure Limitation Mythology,’’working paper 22 (rev. 2005).
Plesko, ‘‘Reconciling Corporate Book and Tax NetIncome, Tax Years 1996-1998,’’ 21 SOI Bull. 1(2002).
Plesko and Nina L. Shumofsky, ‘‘Reconciling Cor-porate Book and Tax Net Income, Tax Years1995-2001,’’ 24 SOI Bull. 103 (2005).
Talisman, Jonathan, ‘‘Corporate Tax Shelters andthe Corporate Tax Base,’’ testimony before theSenate Finance Committee (Mar. 8, 2000).
Towery, Erin, ‘‘Unintended Consequences of Link-ing Tax Return Disclosures of Tax Certainty toFinancial Reporting for Tax Uncertainty,’’ U. Ga.working paper (2014). Presented at the June 2014IRS Research Conference.
Treasury Department, ‘‘Evidence of Growth in Cor-porate Tax Shelters,’’ The Problem of Corporate TaxShelters: Discussion, Analysis, and Legislative Pro-posals, 31-33 (July 1999).
(Tables appear on the following pages.)
COMMENTARY / SPECIAL REPORT
TAX NOTES, November 3, 2014 557
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ax Analysts 2014. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e1A
.20
11U
.S.
Cor
pora
tion
sF
orm
1120
Sche
dule
M-3
:F
inan
cial
Stat
emen
tT
ype
byA
sset
Size
byU
TP
Fili
ngSt
atus
D1:
Fin
anci
alSt
atem
ent
Typ
e,A
sset
Size
,Sc
hedu
leU
TP
Fili
ngSt
atus
(dol
lars
inm
illio
ns)
Ret
urns
Sche
dule
LTo
talA
sset
sW
orld
wid
eIn
com
e(P
art
IL
n4)
Non
incl
udab
leF
orei
gnIn
com
eP
reta
xB
ook
Tax
Net
Inco
me
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
All
41,6
3610
010
051
,095
,020
100
100
820,
641
100
100
-776
,435
100
100
879,
279
100
100
715,
873
100
100
aSE
CFo
rm10
K/P
ublic
_4,
488
1111
37,6
97,0
4874
7486
7,24
810
610
6-7
48,5
9696
9687
8,77
110
010
063
7,69
189
89
bA
udite
d_
17,2
9842
426,
354,
953
1212
63,6
888
8-2
2,61
63
392
,621
1111
45,8
826
6
cU
naud
ited
_19
,850
4848
7,04
3,01
814
14-1
10,2
95-1
3-1
3-5
,223
11
-92,
114
-10
-10
32,3
005
5
a11
20C
onso
l_
19,4
8547
4720
,243
,234
4040
556,
127
6868
-334
,930
4343
613,
912
7070
242,
821
3434
b11
20M
ixG
rp_
420
11
23,2
73,6
3246
4626
5,44
232
32-4
27,1
2255
5526
9,23
831
3123
3,12
633
33
c11
20U
nCon
s_
21,7
3252
527,
578,
153
1515
-928
00
-14,
383
22
-3,8
720
037
,306
55
A≥
$10
mill
ion
<$5
0m
illio
n24
,012
5858
524,
047
11
-2,3
040
0-7
,086
11
-5,0
77-1
-1-5
,918
-1-1
A≥
$50
mill
ion
<$1
00m
illio
n5,
317
1313
377,
215
11
1,84
50
0-1
,271
00
2,32
30
068
00
A≥
$100
mill
ion
orm
ore
12,3
0730
3050
,193
,759
9898
821,
100
100
100
-768
,079
9999
882,
032
100
100
721,
722
101
101
A≥
$100
mill
ion
orm
ore
with
UT
PA
ll2,
074
517
35,8
83,4
6770
7177
0,00
494
94-6
95,8
2690
9180
3,21
691
9161
1,59
885
85
aSE
C10
K/P
ublic
1,22
73
1031
,349
,918
6162
732,
811
8989
-682
,842
8889
740,
593
8484
558,
750
7877
bA
udite
d53
51
42,
561,
995
55
27,2
783
3-1
1,76
82
244
,613
55
22,2
463
3
cU
naud
ited
311
13
1,97
1,55
34
49,
915
11
-1,2
160
018
,011
22
30,6
034
4
A≥
$100
mill
ion
orm
ore
with
out
UT
PA
ll10
,233
2583
14,3
10,2
9228
2951
,096
66
-72,
253
99
78,8
169
911
0,12
415
15
aSE
C10
K/P
ublic
2,14
35
176,
300,
624
1213
138,
890
1717
-63,
497
88
143,
609
1616
82,9
5912
11
bA
udite
d4,
861
1239
3,38
7,11
57
734
,550
44
-9,1
361
146
,867
55
24,1
163
3
cU
naud
ited
3,22
98
264,
622,
553
99
-122
,344
-15
-15
381
00
-111
,659
-13
-13
3,04
90
0
A≥
$1bi
llion
orm
ore
2,75
17
100
47,1
99,3
8592
100
782,
195
9510
0-7
53,2
6497
100
833,
436
9510
068
7,66
496
100
A≥
$1bi
llion
orm
ore
with
UT
PA
ll1,
072
339
35,4
88,0
6469
7575
7,39
492
97-6
89,0
8089
9179
1,48
290
9559
9,65
684
87
aSE
C10
K/P
ublic
748
227
31,1
48,0
9061
6672
3,34
088
92-6
77,1
2887
9073
2,57
883
8855
1,85
677
80
bA
udite
d15
90
62,
428,
108
55
24,4
733
3-1
0,91
41
141
,776
55
18,2
773
3
cU
naud
ited
165
06
1,91
1,86
64
49,
581
11
-1,0
380
017
,128
22
29,5
244
4
A≥
$1bi
llion
orm
ore
with
out
UT
PA
ll1,
679
461
11,7
11,3
2123
2524
,801
33
-64,
184
89
41,9
545
588
,008
1213
aSE
C10
K/P
ublic
803
229
5,76
1,87
011
1212
8,04
116
16-5
7,57
87
813
4,18
715
1678
,049
1111
bA
udite
d48
61
182,
119,
574
44
23,9
123
3-7
,671
11
29,6
683
412
,925
22
cU
naud
ited
390
114
3,82
9,87
77
8-1
27,1
53-1
5-1
61,
064
00
-121
,901
-14
-15
-2,9
670
0
A≥
$100
mill
ion
but
<$1
billi
on9,
556
2310
02,
994,
374
610
038
,905
510
0-1
4,81
52
100
48,5
986
100
34,0
585
100
A≥
$100
mill
ion
but
<$1
billi
onw
ithU
TP
All
1,00
22
1039
5,40
31
1312
,610
232
-6,7
461
4611
,735
124
11,9
422
35
aSE
C10
K/P
ublic
479
15
201,
828
07
9,47
11
24-5
,714
139
8,01
51
166,
894
120
bA
udite
d37
61
413
3,88
70
42,
805
07
-853
06
2,83
70
63,
969
112
cU
naud
ited
146
02
59,6
870
233
30
1-1
790
188
30
21,
079
03
C≥
$100
mill
ion
but
<$1
billi
onw
ithou
tU
TP
All
8,55
421
902,
598,
971
587
26,2
953
68-8
,069
154
36,8
634
7622
,116
365
aSE
C10
K/P
ublic
1,34
03
1453
8,75
41
1810
,849
128
-5,9
191
409,
422
119
4,91
01
14
bA
udite
d4,
375
1146
1,26
7,54
02
4210
,637
127
-1,4
660
1017
,199
235
11,1
902
33
cU
naud
ited
2,83
97
3079
2,67
72
264,
808
112
-683
05
10,2
411
216,
016
118
COMMENTARY / SPECIAL REPORT
558 TAX NOTES, November 3, 2014
(C) T
ax Analysts 2014. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e1B
.20
11U
.S.
Cor
pora
tion
sF
orm
1120
Sche
dule
M-3
:F
inan
cial
Stat
emen
tT
ype
byA
sset
Size
byU
TP
Fili
ngSt
atus
D1:
Fin
anci
alSt
atem
ent
Typ
e,A
sset
Size
,Sc
hedu
leU
TP
Fili
ngSt
atus
(dol
lars
inm
illio
ns)
Pre
tax
Tem
pora
ryD
iffe
renc
eP
reta
xP
erm
anen
tD
iffe
renc
eP
osit
ive
Tax
Net
Inco
me
Taxa
ble
Inco
me
For
eign
Tax
Cre
dit
Tax
Les
sC
redi
ts
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
All
-150
,437
100
100
36,8
0710
010
01,
007,
640
100
100
894,
552
100
100
-104
,882
100
100
190,
756
100
100
aSE
C10
K/P
ublic
_-2
02,5
8813
513
5-5
,315
-14
-14
776,
399
7777
700,
876
7878
-94,
412
9090
137,
090
7272
bA
udite
d_
-54,
477
3636
9,70
726
2611
7,09
312
1210
1,08
611
11-5
,769
66
27,1
6014
14
cU
naud
ited
_10
6,62
9-7
1-7
132
,416
8888
114,
147
1111
92,5
9010
10-4
,701
44
26,5
0614
14
a11
20C
onso
l_
-181
,226
120
120
65,3
3617
817
862
5,86
362
6257
2,09
964
64-7
4,76
271
7111
8,00
862
62
b11
20M
ixG
rp_
45,3
02-3
0-3
0-3
0,03
7-8
2-8
232
6,41
032
3227
6,77
431
31-2
9,04
228
2858
,436
3131
c11
20U
nCon
s_
-14,
513
1010
1,50
84
455
,367
55
45,6
795
5-1
,077
11
14,3
128
8
A≥
$10
mill
ion
<$5
0m
il-lio
n-2
,976
22
2,19
36
624
,808
22
19,3
112
2-1
810
06,
246
33
A≥
$50
mill
ion
<$1
00m
il-lio
n-3
,812
33
1,57
14
414
,900
11
11,6
171
1-2
120
03,
719
22
A≥
$100
mill
ion
orm
ore
-143
,648
9595
33,0
4390
9096
7,93
196
9686
3,62
397
97-1
04,4
8910
010
018
0,79
195
95
A≥
$100
mill
ion
orm
ore
with
UT
PA
ll-1
62,0
0310
811
34,
532
1214
716,
857
7174
647,
420
7275
-88,
912
8585
125,
224
6669
aSE
C10
K/P
ublic
-132
,785
8892
-18,
395
-50
-56
641,
765
6466
580,
837
6567
-83,
242
7980
108,
995
5760
bA
udite
d-2
2,31
815
161,
409
44
36,8
924
433
,344
44
-4,1
254
46,
914
44
cU
naud
ited
-6,9
005
521
,518
5865
38,2
004
433
,239
44
-1,5
451
19,
314
55
A≥
$100
mill
ion
orm
ore
with
out
UT
PA
ll18
,355
-12
-13
28,5
1177
8625
1,07
425
2621
6,20
324
25-1
5,57
715
1555
,567
2931
aSE
C10
K/P
ublic
-70,
126
4749
11,9
8433
3613
2,59
813
1411
8,86
613
14-1
1,15
111
1127
,715
1515
bA
udite
d-2
9,56
520
217,
275
2022
61,4
206
652
,610
66
-1,4
311
115
,407
89
cU
naud
ited
118,
045
-78
-82
9,25
325
2857
,056
66
44,7
275
5-2
,994
33
12,4
467
7
A≥
$1bi
llion
orm
ore
-122
,932
8210
025
,746
7010
087
4,48
087
100
785,
617
8810
0-1
01,4
9997
100
157,
549
8310
0
A≥
$1bi
llion
orm
ore
with
UT
PA
ll-1
61,7
1910
713
23,
873
1115
695,
357
6980
629,
191
7080
-87,
966
8487
120,
283
6376
aSE
C10
K/P
ublic
-131
,758
8810
7-1
8,34
0-5
0-7
162
9,05
362
7257
0,24
264
73-8
2,68
079
8110
6,19
856
67
bA
udite
d-2
2,63
115
1858
52
230
,702
34
27,8
393
4-3
,864
44
5,36
33
3
cU
naud
ited
-7,3
305
621
,627
5984
35,6
024
431
,109
34
-1,4
221
18,
722
56
A≥
$1bi
llion
orm
ore
with
out
UT
PA
ll38
,787
-26
-32
21,8
7359
8517
9,12
318
2015
6,42
617
20-1
3,53
313
1337
,266
2024
aSE
C10
K/P
ublic
-64,
688
4353
10,7
4529
4211
4,92
011
1310
4,32
112
13-1
0,57
010
1023
,384
1215
bA
udite
d-2
1,11
714
174,
612
1318
30,6
983
426
,278
33
-677
11
7,24
04
5
cU
naud
ited
124,
592
-83
-101
6,51
618
2533
,505
34
25,8
293
3-2
,286
22
6,64
33
4
A≥
$100
mill
ion
but
<$1
billi
on-2
0,71
814
100
7,29
720
100
93,4
529
100
78,0
079
100
-2,9
903
100
23,2
4112
100
A≥
$100
mill
ion
but
<$1
billi
onw
ithU
TP
All
-285
01
659
29
21,5
002
2318
,230
223
-946
132
4,94
03
21
aSE
C10
K/P
ublic
-1,0
261
5-5
60
-112
,712
114
10,5
941
14-5
631
192,
797
112
bA
udite
d31
20
-282
42
116,
191
17
5,50
61
7-2
600
91,
550
17
cU
naud
ited
430
0-2
-110
0-2
2,59
80
32,
129
03
-123
04
592
03
C≥
$100
mill
ion
but
<$1
billi
onw
ithou
tU
TP
All
-20,
433
1499
6,63
818
9171
,952
777
59,7
777
77-2
,044
268
18,3
0110
79
aSE
C10
K/P
ublic
-5,4
384
261,
238
317
17,6
772
1914
,545
219
-580
119
4,33
12
19
bA
udite
d-8
,447
641
2,66
27
3630
,722
333
26,3
323
34-7
551
258,
167
435
cU
naud
ited
-6,5
474
322,
738
738
23,5
512
2518
,899
224
-709
124
5,80
33
25
COMMENTARY / SPECIAL REPORT
TAX NOTES, November 3, 2014 559
(C) T
ax Analysts 2014. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e2A
.20
11U
.S.
Cor
pora
tion
sF
orm
1120
Sche
dule
M-3
:19
Indu
stri
esby
Ass
etSi
zeby
UT
PF
iling
Stat
us
D24
:19
Key
Indu
stri
esby
HA
S_U
TP
3fo
rC
orpo
rati
onW
ith
Tota
lAss
ets
≥$1
00M
illio
n
Ret
urns
Sche
dule
LTo
talA
sset
sW
orld
wid
eIn
com
e(P
art
IL
n4)
Non
incl
udab
leF
orei
gnIn
com
e
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
All,
asse
ts≥
$100
mill
ion
12,3
0710
010
050
,193
,759
100
100
821,
100
100
100
-768
,079
100
100
i.Su
btot
al,
man
ufac
turi
ng
No
Sche
dule
UT
P1,
802
1566
1,78
5,15
34
1776
,523
915
-45,
477
68
Sche
dule
UT
P90
87
348,
937,
084
1883
445,
044
5485
-533
,494
6992
n.Su
btot
al,
finan
cial
No
Sche
dule
UT
P4,
678
3896
8,67
5,00
617
30-1
06,9
74-1
347
8-1
,310
03
Sche
dule
UT
P18
92
420
,433
,731
4170
84,6
0110
-378
-41,
964
597
y.Su
btot
al,
othe
r
No
Sche
dule
UT
P3,
753
3079
3,85
0,13
38
3781
,547
1025
-25,
466
317
Sche
dule
UT
P97
68
216,
512,
652
1363
240,
359
2975
-120
,368
1683
a.Pe
trol
eum
refin
erie
s
No
Sche
dule
UT
P28
074
216,
424
09
14,6
702
14-5
,276
17
Sche
dule
UT
P10
026
2,12
8,28
94
9193
,198
1186
-71,
301
993
b.Ph
arm
aceu
tical
s
No
Sche
dule
UT
P58
049
27,9
360
356
90
15
00
Sche
dule
UT
P60
051
1,00
2,63
12
9752
,041
699
-173
,851
2310
0
c.C
ompu
ters
/ele
ctro
nics
No
Sche
dule
UT
P13
91
3914
3,45
20
132,
973
03
-2,1
570
2
Sche
dule
UT
P21
62
6195
3,74
52
8795
,375
1297
-131
,237
1798
d.E
lect
rica
leq
uipm
ent
No
Sche
dule
UT
P80
171
53,0
960
51,
174
05
-1,7
510
6
Sche
dule
UT
P32
029
947,
861
295
20,7
253
95-2
9,48
84
94
e.T
rans
port
atio
neq
uipm
ent
No
Sche
dule
UT
P20
72
6712
8,78
40
114,
284
16
-2,7
340
13
Sche
dule
UT
P10
01
331,
079,
082
289
64,9
918
94-1
8,19
42
87
f.Fa
bric
ated
met
al/m
achi
nery
No
Sche
dule
UT
P31
83
7121
8,90
20
2311
,984
129
-8,8
811
28
Sche
dule
UT
P12
81
2971
5,07
91
7729
,159
471
-23,
350
372
g.Fo
od/b
ever
age
man
ufac
turi
ng
No
Sche
dule
UT
P20
42
7832
9,15
31
3023
,279
347
-13,
613
232
Sche
dule
UT
P57
022
760,
280
270
26,6
373
53-2
8,54
14
68
h.O
ther
man
ufac
turi
ng
No
Sche
dule
UT
P76
76
7266
7,40
71
3317
,590
222
-11,
070
116
Sche
dule
UT
P30
52
281,
350,
116
367
62,9
188
78-5
7,53
27
84
j.N
on-b
ank
hold
ing
com
pany
No
Sche
dule
UT
P36
73
9627
4,99
21
6697
40
9-1
,482
012
Sche
dule
UT
P17
04
140,
437
034
9,73
91
91-1
0,42
71
88
k.B
ank
(and
bank
hold
ing
com
pany
)
No
Sche
dule
UT
P3,
288
2798
4,90
7,80
710
3222
,754
329
-194
01
Sche
dule
UT
P55
02
10,2
72,5
7220
6855
,146
771
-16,
088
299
l.Se
curi
ties/
com
mod
ities
No
Sche
dule
UT
P24
12
842,
651,
577
542
-146
,364
-18
118
5,29
7-1
-172
Sche
dule
UT
P47
016
3,62
8,47
47
5822
,321
3-1
8-8
,374
127
2
m.
Oth
erfin
anci
al
No
Sche
dule
UT
P78
26
9284
0,63
12
1215
,662
212
0-4
,932
141
Sche
dule
UT
P70
18
6,39
2,24
813
88-2
,605
0-2
0-7
,075
159
o.T
rade
No
Sche
dule
UT
P1,
185
1081
993,
513
232
37,2
415
30-8
,586
115
Sche
dule
UT
P28
32
192,
083,
899
468
85,4
5210
70-4
8,94
16
85
p.In
form
atio
n
No
Sche
dule
UT
P43
54
7164
5,10
71
272,
496
04
1,88
20
-5
Sche
dule
UT
P17
41
291,
720,
048
373
65,2
988
96-3
6,98
45
105
q.U
tiliti
es
No
Sche
dule
UT
P16
11
7343
8,64
01
277,
299
121
-13
01
Sche
dule
UT
P59
027
1,17
2,24
52
7327
,427
379
-2,4
920
99
r.T
rans
port
/war
ehou
sing
No
Sche
dule
UT
P24
62
8734
7,36
61
5923
40
248
00
-48
Sche
dule
UT
P36
013
242,
174
041
14,4
702
98-1
,490
014
8
s.M
inin
g
No
Sche
dule
UT
P32
93
9058
4,64
81
6125
,048
348
-16,
577
259
Sche
dule
UT
P35
010
370,
655
139
27,2
913
52-1
1,43
11
41
t.C
onst
ruct
ion
No
Sche
dule
UT
P18
21
8911
2,25
00
70-1
,032
0-2
51-3
40
6
Sche
dule
UT
P22
011
48,9
570
301,
443
035
1-5
460
94
x.Se
rvic
es/a
gric
ultu
re/o
ther
No
Sche
dule
UT
P1,
214
1077
728,
608
145
10,2
621
35-2
,617
012
Sche
dule
UT
P36
73
2387
4,67
42
5518
,979
265
-18,
484
288
COMMENTARY / SPECIAL REPORT
560 TAX NOTES, November 3, 2014
(C) T
ax Analysts 2014. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e2B
.20
11U
.S.
Cor
pora
tion
sF
orm
1120
Sche
dule
M-3
:19
Indu
stri
esby
Ass
etSi
zeby
UT
PF
iling
Stat
us
D24
:19
Key
Indu
stri
esby
HA
S_U
TP
3fo
rC
orpo
rati
onW
ith
Tota
lAss
ets
≥$1
00M
illio
n
Pre
tax
Boo
kP
reta
xTe
mpo
rary
Dif
fere
nce
Pre
tax
Per
man
ent
Dif
fere
nce
Tax
Les
sC
redi
ts
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
Sum
Per
cent
age
Per
cent
age
All,
asse
ts≥
$100
mill
ion
882,
032
100
100
-143
,648
100
100
33,0
4310
010
018
0,79
110
010
0
i.Su
btot
al,
man
ufac
turi
ng
No
Sche
dule
UT
P63
,405
714
-19,
334
1332
2,47
57
1413
,878
822
Sche
dule
UT
P39
1,89
744
86-4
0,36
728
6814
,658
4486
50,1
2528
78
n.Su
btot
al,
finan
cial
No
Sche
dule
UT
P-9
1,15
6-1
0-1
7610
3,23
8-7
211
04,
089
12-1
715
,033
841
Sche
dule
UT
P14
2,82
416
276
-9,1
836
-10
-28,
590
-87
117
21,2
0212
59
y.Su
btot
al,
othe
r
No
Sche
dule
UT
P10
6,56
712
28-6
5,55
046
3721
,948
6654
26,6
5615
33
Sche
dule
UT
P26
8,49
630
72-1
12,4
5378
6318
,463
5646
53,8
9630
67
a.Pe
trol
eum
refin
erie
s
No
Sche
dule
UT
P14
,723
212
-5,2
764
50-5
80-2
-41,
488
121
Sche
dule
UT
P11
2,00
413
88-5
,197
450
16,7
7951
104
5,75
93
79
b.Ph
arm
aceu
tical
s
No
Sche
dule
UT
P67
10
349
60
7-5
20
038
30
5
Sche
dule
UT
P23
,681
397
6,23
0-4
9314
,943
4510
07,
748
495
c.C
ompu
ters
/ele
ctro
nics
No
Sche
dule
UT
P2,
396
04
-2,5
012
181,
248
4-4
257
70
6
Sche
dule
UT
P63
,091
796
-11,
480
882
-4,2
18-1
314
29,
510
594
d.E
lect
rica
leq
uipm
ent
No
Sche
dule
UT
P35
60
1-7
521
2055
02
-13
323
027
Sche
dule
UT
P26
,965
399
-2,9
202
80-4
,694
-14
113
884
073
e.T
rans
port
atio
neq
uipm
ent
No
Sche
dule
UT
P2,
250
04
-1,9
681
943
91
-536
80
6
Sche
dule
UT
P58
,572
796
-19,
724
1491
-8,5
86-2
610
55,
310
394
f.Fa
bric
ated
met
al/m
achi
nery
No
Sche
dule
UT
P8,
452
125
-1,2
201
401,
410
447
2,36
61
32
Sche
dule
UT
P24
,756
375
-1,8
291
601,
577
553
4,95
53
68
g.Fo
od/b
ever
age
man
ufac
turi
ng
No
Sche
dule
UT
P19
,653
245
-1,1
581
77-2
,521
-859
3,94
42
41
Sche
dule
UT
P23
,634
355
-352
023
-1,7
24-5
415,
566
359
h.O
ther
man
ufac
turi
ng
No
Sche
dule
UT
P14
,904
220
-6,9
555
581,
981
677
4,42
82
30
Sche
dule
UT
P59
,194
780
-5,0
964
4258
12
2310
,393
670
j.N
on-b
ank
hold
ing
com
pany
No
Sche
dule
UT
P2,
327
020
-3,5
032
465,
244
1632
2,19
51
54
Sche
dule
UT
P9,
468
180
-4,0
383
5411
,051
3368
1,89
51
46
k.B
ank
(and
bank
hold
ing
com
pany
)
No
Sche
dule
UT
P31
,696
422
-10,
897
815
8-1
,532
-53
7,45
34
47
Sche
dule
UT
P11
2,28
413
783,
997
-3-5
8-4
4,77
8-1
3697
8,35
85
53
l.Se
curi
ties/
com
mod
ities
No
Sche
dule
UT
P-1
41,1
81-1
611
513
1,49
1-9
210
31,
512
536
2,11
71
30
Sche
dule
UT
P18
,829
2-1
5-3
,597
3-3
2,72
98
645,
056
370
m.
Oth
erfin
anci
al
No
Sche
dule
UT
P16
,002
288
-13,
853
1071
-1,1
35-3
-89
3,26
72
36
Sche
dule
UT
P2,
242
012
-5,5
444
292,
409
718
95,
893
364
o.T
rade
No
Sche
dule
UT
P49
,379
632
-15,
913
1159
2,81
79
3313
,052
731
Sche
dule
UT
P10
5,26
512
68-1
0,90
98
415,
655
1767
28,6
1416
69
p.In
form
atio
n
No
Sche
dule
UT
P6,
048
19
6,93
0-5
-47
2,41
67
252,
758
218
Sche
dule
UT
P62
,704
791
-21,
627
1514
77,
130
2275
12,2
087
82
q.U
tiliti
es
No
Sche
dule
UT
P8,
058
116
-15,
636
1123
-1,8
18-6
1933
00
34
Sche
dule
UT
P41
,766
584
-53,
348
3777
-7,9
96-2
481
652
066
r.T
rans
port
/war
ehou
sing
No
Sche
dule
UT
P2,
075
09
-7,3
085
371,
940
610
495
41
25
Sche
dule
UT
P20
,337
291
-12,
415
963
-83
0-4
2,87
12
75
s.M
inin
g
No
Sche
dule
UT
P28
,581
354
-28,
992
2069
11,0
2533
108
2,75
82
51
Sche
dule
UT
P24
,749
346
-12,
764
931
-818
-2-8
2,63
01
49
t.C
onst
ruct
ion
No
Sche
dule
UT
P-8
330
-386
-1,5
611
9817
61
2946
40
52
Sche
dule
UT
P1,
049
048
6-2
90
242
31
7142
70
48
x.Se
rvic
es/a
gric
ultu
re/o
ther
No
Sche
dule
UT
P13
,259
251
-3,0
692
695,
391
1628
6,33
94
49
Sche
dule
UT
P12
,625
149
-1,3
601
3114
,152
4372
6,49
44
51
COMMENTARY / SPECIAL REPORT
TAX NOTES, November 3, 2014 561
(C) T
ax Analysts 2014. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tab
le3.
2011
U.S
.Cor
por
atio
nFo
rm11
20S
ched
ule
M-3
:Cos
tof
Goo
ds
Sol
d(C
OG
S)
Rel
ated
Ad
just
men
ts$
Mil
lion
sA
dju
stm
ents
2011
All
Un
adju
sted
Boo
kA
dju
sted
CO
GS
1A
dju
sted
CO
GS
2A
dju
sted
CO
GS
3A
dju
sted
Exp
ense
s/D
edu
ctio
ns
Tota
lA
dju
sted
Ad
just
edB
ook
Oth
erin
com
eno
dif
fere
nce
34,4
88,3
65-2
5,73
3,87
144
6,38
52,
387,
246
-22,
900,
240
11,5
88,1
24
CO
GS
-51,
429,
810
16,0
21,3
6725
,733
,871
-446
,385
41,3
08,8
53-1
0,12
0,95
6
Gro
sspr
ofit
-16,
941,
445
16,0
21,3
670
02,
387,
246
18,4
08,6
131,
467,
168
Spec
ifie
din
com
e1,
804,
671
01,
804,
671
Oth
erin
com
ew
ith
dif
fere
nce
20,3
40,3
77-1
6,02
1,36
7-1
6,02
1,36
74,
319,
010
Tota
lin
com
e5,
203,
603
00
02,
387,
246
2,38
7,24
67,
590,
849
Spec
ifie
dex
pens
es/
ded
ucti
ons
-2,0
98,9
460
-2,0
98,9
46
Oth
erex
pens
es/
ded
ucti
ons
wit
hd
iffe
renc
e-2
,225
,382
0-2
,225
,382
Oth
erex
pens
es/
ded
ucti
ons
nod
iffe
renc
e0
-2,3
87,2
46-2
,387
,246
-2,3
87,2
46
Pret
axne
tin
com
e87
9,27
90
00
00
879,
279
2011
SE
CFo
rm10
K/P
ub
lic
Un
adju
sted
Boo
kA
dju
sted
CO
GS
1A
dju
sted
CO
GS
2A
dju
sted
CO
GS
3A
dju
sted
Exp
ense
s/D
edu
ctio
ns
Tota
lA
dju
sted
Ad
just
edB
ook
Oth
erin
com
eno
dif
fere
nce
29,1
67,6
53-2
4,32
4,22
435
2,20
61,
451,
683
-22,
520,
335
6,64
7,31
9
CO
GS
-45,
958,
356
15,9
93,1
5824
,324
,224
-352
,206
39,9
65,1
76-5
,993
,181
Gro
sspr
ofit
-16,
790,
703
15,9
93,1
580
01,
451,
683
17,4
44,8
4165
4,13
8
Spec
ifie
din
com
e1,
470,
206
01,
470,
206
Oth
erin
com
ew
ith
dif
fere
nce
19,2
40,0
58-1
5,99
3,15
8-1
5,99
3,15
83,
246,
900
Tota
lin
com
e3,
919,
561
00
01,
451,
683
1,45
1,68
35,
371,
244
Spec
ifie
dex
pens
es/
ded
ucti
ons
-1,5
64,3
680
-1,5
64,3
68
Oth
erex
pens
es/
ded
ucti
ons
wit
hd
iffe
renc
e-1
,476
,426
0-1
,476
,426
Oth
erex
pens
es/
ded
ucti
ons
nod
iffe
renc
e0
-1,4
51,6
83-1
,451
,683
-1,4
51,6
83
Pret
axne
tin
com
e87
8,77
10
00
00
878,
771
2011
Au
dit
edU
nad
just
edB
ook
Ad
just
edC
OG
S1
Ad
just
edC
OG
S2
Ad
just
edC
OG
S3
Ad
just
edE
xpen
ses/
Ded
uct
ion
sTo
tal
Ad
just
edA
dju
sted
Boo
k
Oth
erin
com
eno
dif
fere
nce
2,82
3,32
8-3
57,7
9044
,962
522,
623
209,
795
3,03
3,12
3
CO
GS
-2,9
99,7
9210
,505
357,
790
-44,
962
323,
333
-2,6
76,4
59
Gro
sspr
ofit
-176
,464
10,5
050
052
2,62
353
3,12
835
6,66
4
Spec
ifie
din
com
e18
5,01
60
185,
016
Oth
erin
com
ew
ith
dif
fere
nce
706,
232
-10,
505
-10,
505
695,
727
Tota
lin
com
e71
4,78
40
00
522,
623
522,
623
1,23
7,40
8
Spec
ifie
dex
pens
es/
ded
ucti
ons
-286
,067
0-2
86,0
67
Oth
erex
pens
es/
ded
ucti
ons
wit
hd
iffe
renc
e-3
36,0
960
-336
,096
Oth
erex
pens
es/
ded
ucti
ons
nod
iffe
renc
e0
-522
,623
-522
,623
-522
,623
Pret
axne
tin
com
e92
,621
00
00
092
,621
2011
Un
aud
ited
Un
adju
sted
Boo
kA
dju
sted
CO
GS
1A
dju
sted
CO
GS
2A
dju
sted
CO
GS
3A
dju
sted
Exp
ense
s/D
edu
ctio
ns
Tota
lA
dju
sted
Ad
just
edB
ook
Oth
erin
com
eno
dif
fere
nce
2,49
7,38
3-1
,051
,857
49,2
1641
2,94
0-5
89,7
011,
907,
682
CO
GS
-2,4
71,6
6117
,704
1,05
1,85
7-4
9,21
61,
020,
345
-1,4
51,3
17
Gro
sspr
ofit
25,7
2217
,704
00
412,
940
430,
644
456,
365
Spec
ifie
din
com
e14
9,44
90
149,
449
Oth
erin
com
ew
ith
dif
fere
nce
394,
086
-17,
704
-17,
704
376,
383
Tota
lin
com
e56
9,25
70
00
412,
940
412,
940
982,
197
Spec
ifie
dex
pens
es/
ded
ucti
ons
-248
,510
0-2
48,5
10
Oth
erex
pens
es/
ded
ucti
ons
wit
hd
iffe
renc
e-4
12,8
600
-412
,860
Oth
erex
pens
es/
ded
ucti
ons
nod
iffe
renc
e0
-412
,940
-412
,940
-412
,940
Pret
axne
tin
com
e-9
2,11
40
00
00
-92,
114
COMMENTARY / SPECIAL REPORT
562 TAX NOTES, November 3, 2014
(C) T
ax Analysts 2014. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e4.
2010
-201
1:U
.S.
Cor
pora
tion
For
m11
20Sc
hedu
leM
-3:
Min
iM
-3by
UT
PSt
atus
:SE
CF
orm
10K
/Pub
licF
S:A
sset
s$1
00M
illio
nor
Mor
eSp
ecif
ied
vs.
Oth
erby
FS
&U
TP
$in
Mill
ions
Per
cent
age
ofA
djus
ted
Tota
lIn
com
eB
ook
Per
cent
age
ofP
reta
xB
ook
2010
SEC
For
m10
K/P
ublic
Wit
hU
TP
Fili
ngC
olum
nA
Boo
kC
olum
nB
Tem
pora
ryC
olum
nC
Per
man
ent
Col
umn
DTa
xTo
tal
Dif
fere
nce
Boo
kTe
mpo
rary
Per
man
ent
Tax
Tota
lD
iffe
renc
eTe
mpo
rary
Per
man
ent
Tota
lD
iffe
renc
e
Adj
uste
dgr
oss
profi
t1,
287,
530
-24,
531
3,89
11,
266,
891
-20,
640
33.5
1-0
.64
0.10
32.9
8-0
.54
-3.6
0.6
-3.0
Spec
ified
inco
me
1,28
9,81
5-1
14,7
19-1
3,34
91,
161,
754
-128
,067
33.5
7-2
.99
-0.3
530
.24
-3.3
3-1
6.7
-1.9
-18.
6
Adj
uste
dot
her
inco
me
with
diff
eren
ce1,
264,
432
3,58
3-5
8,28
71,
209,
747
-54,
704
32.9
10.
09-1
.52
31.4
9-1
.42
0.5
-8.5
-8.0
Adj
uste
dto
tal
inco
me
3,84
1,77
8-1
35,6
67-6
7,74
53,
638,
392
-203
,412
100.
00-3
.53
-1.7
694
.71
-5.2
9-1
9.8
-9.9
-29.
6
Spec
ified
expe
nses
/ded
uctio
ns-1
,230
,384
28,9
9422
,723
-1,1
78,6
7651
,718
-32.
030.
750.
59-3
0.68
1.35
4.2
3.3
7.5
Oth
erex
pens
es/d
educ
tions
with
diff
eren
ce-9
78,9
50-3
4,79
4-4
,483
-1,0
18,2
42-3
9,27
6-2
5.48
-0.9
1-0
.12
-26.
50-1
.02
-5.1
-0.7
-5.7
Adj
uste
dot
her
expe
nses
/ded
uctio
nsno
diff
eren
ce-9
45,6
410
0-9
45,6
410
-24.
610.
000.
00-2
4.61
0.00
0.0
0.0
0.0
Pret
axne
tin
com
e68
6,80
3-1
41,4
66-4
9,50
449
5,83
3-1
90,9
7017
.88
-3.6
8-1
.29
12.9
1-4
.97
-20.
6-7
.2-2
7.8
2010
SEC
For
m10
K/P
ublic
Wit
hout
UT
PF
iling
Col
umn
AB
ook
Col
umn
BTe
mpo
rary
Col
umn
CP
erm
anen
tC
olum
nD
Tax
Tota
lD
iffe
renc
eB
ook
Tem
pora
ryP
erm
anen
tTa
xTo
tal
Dif
fere
nce
Tem
pora
ryP
erm
anen
tTo
tal
Dif
fere
nce
Adj
uste
dgr
oss
profi
t62
4,08
325
,810
-140
649,
762
25,6
6945
.99
1.90
-0.0
147
.88
1.89
11.4
-0.1
11.3
Spec
ified
inco
me
147,
010
15,5
62-4
7,01
211
5,56
6-3
1,45
010
.83
1.15
-3.4
68.
52-2
.32
6.8
-20.
7-1
3.8
Adj
uste
dot
her
inco
me
with
diff
eren
ce58
6,02
9-3
9,25
2-1
7,03
152
9,74
5-5
6,28
343
.18
-2.8
9-1
.25
39.0
3-4
.15
-17.
3-7
.5-2
4.8
Adj
uste
dto
tal
inco
me
1,35
7,12
22,
120
-64,
184
1,29
5,07
4-6
2,06
510
0.00
0.16
-4.7
395
.43
-4.5
70.
9-2
8.2
-27.
3
Spec
ified
expe
nses
/ded
uctio
ns-3
38,3
53-2
6,28
9-1
40-3
64,7
99-2
6,42
9-2
4.93
-1.9
4-0
.01
-26.
88-1
.95
-11.
6-0
.1-1
1.6
Oth
erex
pens
es/d
educ
tions
with
diff
eren
ce-3
77,0
11-1
3,38
817
,336
-373
,063
3,94
8-2
7.78
-0.9
91.
28-2
7.49
0.29
-5.9
7.6
1.7
Adj
uste
dot
her
expe
nses
/ded
uctio
nsno
diff
eren
ce-4
14,4
250
0-4
14,4
250
-30.
540.
000.
00-3
0.54
0.00
0.0
0.0
0.0
Pret
axne
tin
com
e22
7,33
2-3
7,55
7-4
6,98
914
2,78
6-8
4,54
616
.75
-2.7
7-3
.46
10.5
2-6
.23
-16.
5-2
0.7
-37.
2
2011
SEC
For
m10
K/P
ublic
Wit
hU
TP
Fili
ngC
olum
nA
Boo
kC
olum
nB
Tem
pora
ryC
olum
nC
Per
man
ent
Col
umn
DTa
xTo
tal
Dif
fere
nce
Boo
kTe
mpo
rary
Per
man
ent
Tax
Tota
lD
iffe
renc
eTe
mpo
rary
Per
man
ent
Tota
lD
iffe
renc
e
Adj
uste
dgr
oss
profi
t24
5,22
113
,563
-2,7
4825
6,03
710
,816
5.90
0.33
-0.0
76.
160.
261.
8-0
.41.
5
Spec
ified
inco
me
1,25
2,74
5-8
3,87
2-1
5,12
51,
153,
790
-98,
996
30.1
4-2
.02
-0.3
627
.76
-2.3
8-1
1.3
-2.0
-13.
4
Adj
uste
dot
her
inco
me
with
diff
eren
ce2,
658,
720
-7,8
95-3
3,59
52,
617,
230
-41,
490
63.9
6-0
.19
-0.8
162
.96
-1.0
0-1
.1-4
.5-5
.6
Adj
uste
dto
tal
inco
me
4,15
6,68
6-7
8,20
4-5
1,46
74,
027,
056
-129
,671
100.
00-1
.88
-1.2
496
.88
-3.1
2-1
0.6
-6.9
-17.
5
Spec
ified
expe
nses
/ded
uctio
ns-1
,280
,402
-19,
186
29,0
58-1
,270
,570
9,87
2-3
0.80
-0.4
60.
70-3
0.57
0.24
-2.6
3.9
1.3
Oth
erex
pens
es/d
educ
tions
with
diff
eren
ce-1
,090
,956
-35,
395
4,01
9-1
,122
,333
-31,
377
-26.
25-0
.85
0.10
-27.
00-0
.75
-4.8
0.5
-4.2
Adj
uste
dot
her
expe
nses
/ded
uctio
nsno
diff
eren
ce-1
,044
,741
00
-1,0
44,7
410
-25.
130.
000.
00-2
5.13
0.00
0.0
0.0
0.0
Pret
axne
tin
com
e74
0,59
3-1
32,7
85-1
8,39
558
9,41
3-1
51,1
8017
.82
-3.1
9-0
.44
14.1
8-3
.64
-17.
9-2
.5-2
0.4
2011
SEC
For
m10
K/P
ublic
Wit
hout
UT
PF
iling
Col
umn
AB
ook
Col
umn
BTe
mpo
rary
Col
umn
CP
erm
anen
tC
olum
nD
Tax
Tota
lD
iffe
renc
eB
ook
Tem
pora
ryP
erm
anen
tTa
xTo
tal
Dif
fere
nce
Tem
pora
ryP
erm
anen
tTo
tal
Dif
fere
nce
Adj
uste
dgr
oss
profi
t39
7,31
7-1
8,37
71,
744
380,
669
-16,
634
33.3
1-1
.54
0.15
31.9
2-1
.39
-12.
81.
2-1
1.6
Spec
ified
inco
me
214,
691
2,82
712
,700
230,
274
15,5
2618
.00
0.24
1.06
19.3
11.
302.
08.
810
.8
Adj
uste
dot
her
inco
me
with
diff
eren
ce58
0,65
62,
216
-3,6
2857
9,24
4-1
,412
48.6
90.
19-0
.30
48.5
7-0
.12
1.5
-2.5
-1.0
Adj
uste
dto
tal
inco
me
1,19
2,66
4-1
3,33
410
,816
1,19
0,18
8-2
,519
100.
00-1
.12
0.91
99.7
9-0
.21
-9.3
7.5
-1.8
Spec
ified
expe
nses
/ded
uctio
ns-2
78,5
18-4
4,64
217
8-3
23,0
24-4
4,46
4-2
3.35
-3.7
40.
01-2
7.08
-3.7
3-3
1.1
0.1
-31.
0
Oth
erex
pens
es/d
educ
tions
with
diff
eren
ce-3
77,1
89-1
2,15
099
0-3
88,3
49-1
1,16
0-3
1.63
-1.0
20.
08-3
2.56
-0.9
4-8
.50.
7-7
.8
Adj
uste
dot
her
expe
nses
/ded
uctio
nsno
diff
eren
ce-3
93,3
480
0-3
93,3
480
-32.
980.
000.
00-3
2.98
0.00
0.0
0.0
0.0
Pret
axne
tin
com
e14
3,60
9-7
0,12
611
,984
85,4
66-5
8,14
212
.04
-5.8
81.
007.
17-4
.87
-48.
88.
3-4
0.5
COMMENTARY / SPECIAL REPORT
TAX NOTES, November 3, 2014 563
(C) T
ax Analysts 2014. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e5.
2010
-201
1:U
.S.
Cor
pora
tion
For
m11
20Sc
hedu
leM
-3:
Min
iM
-3by
UT
PSt
atus
:A
udit
edF
S:A
sset
s$1
00M
illio
nor
Mor
eSp
ecif
ied
vs.
Oth
erby
FS
&U
TP
$in
Mill
ions
Per
cent
age
ofA
djus
ted
Tota
lIn
com
eB
ook
Per
cent
age
ofP
reta
xB
ook
2010
Aud
ited
Wit
hU
TP
Fili
ngC
olum
nA
Boo
kC
olum
nB
Tem
pora
ryC
olum
nC
Per
man
ent
Col
umn
DTa
xTo
tal
Dif
fere
nce
Boo
kTe
mpo
rary
Per
man
ent
Tax
Tota
lD
iffe
renc
eTe
mpo
rary
Per
man
ent
Tota
lD
iffe
renc
e
Adj
uste
dgr
oss
profi
t16
,809
8,59
9-4
425
,372
8,55
54.
242.
17-0
.01
6.39
2.16
38.8
-0.2
38.6
Spec
ified
inco
me
53,5
266,
630
-7,7
5652
,399
-1,1
2513
.49
1.67
-1.9
513
.20
-0.2
829
.9-3
5.0
-5.1
Adj
uste
dot
her
inco
me
with
diff
eren
ce32
6,53
6-1
0,78
1-1
,716
314,
039
-12,
497
82.2
8-2
.72
-0.4
379
.13
-3.1
5-4
8.7
-7.8
-56.
4
Adj
uste
dto
tal
inco
me
396,
871
4,44
9-9
,516
391,
810
-5,0
6710
0.00
1.12
-2.4
098
.72
-1.2
820
.1-4
3.0
-22.
9
Spec
ified
expe
nses
/ded
uctio
ns-1
15,0
32-8
186,
103
-109
,754
5,28
5-2
8.98
-0.2
11.
54-2
7.65
1.33
-3.7
27.6
23.9
Oth
erex
pens
es/d
educ
tions
with
diff
eren
ce-1
43,1
6713
,925
257
-128
,985
14,1
82-3
6.07
3.51
0.06
-32.
503.
5762
.91.
264
.1
Adj
uste
dot
her
expe
nses
/ded
uctio
nsno
diff
eren
ce-1
16,5
310
0-1
16,5
310
-29.
360.
000.
00-2
9.36
0.00
0.0
0.0
0.0
Pret
axne
tin
com
e22
,139
17,5
61-3
,155
36,5
4514
,406
5.58
4.42
-0.7
99.
213.
6379
.3-1
4.3
65.1
2010
Aud
ited
Wit
hout
UT
PF
iling
Col
umn
AB
ook
Col
umn
BTe
mpo
rary
Col
umn
CP
erm
anen
tC
olum
nD
Tax
Tota
lD
iffe
renc
eB
ook
Tem
pora
ryP
erm
anen
tTa
xTo
tal
Dif
fere
nce
Tem
pora
ryP
erm
anen
tTo
tal
Dif
fere
nce
Adj
uste
dgr
oss
profi
t21
0,20
9-4
,403
353
206,
199
-4,0
5134
.65
-0.7
30.
0633
.99
-0.6
7-1
0.4
0.8
-9.6
Spec
ified
inco
me
114,
477
-1,2
662,
870
116,
061
1,60
318
.87
-0.2
10.
4719
.13
0.26
-3.0
6.8
3.8
Adj
uste
dot
her
inco
me
with
diff
eren
ce28
1,99
0-3
41-6
,459
275,
191
-6,8
0046
.48
-0.0
6-1
.06
45.3
6-1
.12
-0.8
-15.
2-1
6.1
Adj
uste
dto
tal
inco
me
606,
676
-6,0
11-3
,237
597,
452
-9,2
4810
0.00
-0.9
9-0
.53
98.4
8-1
.52
-14.
2-7
.6-2
1.8
Spec
ified
expe
nses
/ded
uctio
ns-1
46,5
71-9
,770
5,91
1-1
50,4
53-3
,859
-24.
16-1
.61
0.97
-24.
80-0
.64
-23.
114
.0-9
.1
Oth
erex
pens
es/d
educ
tions
with
diff
eren
ce-1
59,1
9510
837
7-1
58,7
1048
5-2
6.24
0.02
0.06
-26.
160.
080.
30.
91.
1
Adj
uste
dot
her
expe
nses
/ded
uctio
nsno
diff
eren
ce-2
58,5
510
0-2
58,5
510
-42.
620.
000.
00-4
2.62
0.00
0.0
0.0
0.0
Pret
axne
tin
com
e42
,359
-15,
672
3,05
129
,738
-12,
621
6.98
-2.5
80.
504.
90-2
.08
-37.
07.
2-2
9.8
2011
Aud
ited
Wit
hU
TP
Fili
ngC
olum
nA
Boo
kC
olum
nB
Tem
pora
ryC
olum
nC
Per
man
ent
Col
umn
DTa
xTo
tal
Dif
fere
nce
Boo
kTe
mpo
rary
Per
man
ent
Tax
Tota
lD
iffe
renc
eTe
mpo
rary
Per
man
ent
Tota
lD
iffe
renc
e
Adj
uste
dgr
oss
profi
t-1
,516
8,83
762
7,38
38,
899
-0.3
62.
120.
011.
772.
1419
.80.
119
.9
Spec
ified
inco
me
52,2
236,
549
-9,5
9149
,183
-3,0
4212
.55
1.57
-2.3
111
.82
-0.7
314
.7-2
1.5
-6.8
Adj
uste
dot
her
inco
me
with
diff
eren
ce36
5,27
5-9
,796
-505
354,
974
-10,
301
87.8
1-2
.35
-0.1
285
.33
-2.4
8-2
2.0
-1.1
-23.
1
Adj
uste
dto
tal
inco
me
415,
982
5,59
0-1
0,03
441
1,53
9-4
,444
100.
001.
34-2
.41
98.9
3-1
.07
12.5
-22.
5-1
0.0
Spec
ified
expe
nses
/ded
uctio
ns-1
13,7
37-2
4,73
59,
572
-128
,900
-15,
163
-27.
34-5
.95
2.30
-30.
99-3
.65
-55.
421
.5-3
4.0
Oth
erex
pens
es/d
educ
tions
with
diff
eren
ce-1
22,8
02-3
,174
1,87
1-1
24,1
04-1
,303
-29.
52-0
.76
0.45
-29.
83-0
.31
-7.1
4.2
-2.9
Adj
uste
dot
her
expe
nses
/ded
uctio
nsno
diff
eren
ce-1
34,8
300
0-1
34,8
300
-32.
410.
000.
00-3
2.41
0.00
0.0
0.0
0.0
Pret
axne
tin
com
e44
,613
-22,
318
1,40
923
,704
-20,
909
10.7
2-5
.37
0.34
5.70
-5.0
3-5
0.0
3.2
-46.
9
2011
Aud
ited
Wit
hout
UT
PF
iling
Col
umn
AB
ook
Col
umn
BTe
mpo
rary
Col
umn
CP
erm
anen
tC
olum
nD
Tax
Tota
lD
iffe
renc
eB
ook
Tem
pora
ryP
erm
anen
tTa
xTo
tal
Dif
fere
nce
Tem
pora
ryP
erm
anen
tTo
tal
Dif
fere
nce
Adj
uste
dgr
oss
profi
t21
5,91
2-6
,756
490
214,
503
-6,2
6635
.60
-1.1
10.
0835
.36
-1.0
3-1
4.4
1.0
-13.
4
Spec
ified
inco
me
114,
346
-7,1
341
102,
304
-7,1
3218
.85
-1.1
80.
0016
.87
-1.1
8-1
5.2
0.0
-15.
2
Adj
uste
dot
her
inco
me
with
diff
eren
ce27
6,28
7-1
,302
-772
274,
321
-2,0
7545
.55
-0.2
1-0
.13
45.2
3-0
.34
-2.8
-1.6
-4.4
Adj
uste
dto
tal
inco
me
606,
546
-15,
192
-281
591,
128
-15,
473
100.
00-2
.50
-0.0
597
.46
-2.5
5-3
2.4
-0.6
-33.
0
Spec
ified
expe
nses
/ded
uctio
ns-1
41,5
45-1
4,22
96,
334
-149
,491
-7,8
95-2
3.34
-2.3
51.
04-2
4.65
-1.3
0-3
0.4
13.5
-16.
8
Oth
erex
pens
es/d
educ
tions
with
diff
eren
ce-1
58,2
00-1
451,
222
-157
,126
1,07
7-2
6.08
-0.0
20.
20-2
5.91
0.18
-0.3
2.6
2.3
Adj
uste
dot
her
expe
nses
/ded
uctio
nsno
diff
eren
ce-2
59,9
350
0-2
59,9
350
-42.
850.
000.
00-4
2.85
0.00
0.0
0.0
0.0
Pret
axne
tin
com
e46
,867
-29,
565
7,27
524
,577
-22,
290
7.73
-4.8
71.
204.
05-3
.67
-63.
115
.5-4
7.6
COMMENTARY / SPECIAL REPORT
564 TAX NOTES, November 3, 2014
(C) T
ax Analysts 2014. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e6.
2010
-201
1:U
.S.
Cor
pora
tion
For
m11
20Sc
hedu
leM
-3:
Min
iM
-3by
UT
PSt
atus
:U
naud
ited
FS:
Ass
ets
$100
Mill
ion
orM
ore
Spec
ifie
dvs
.O
ther
byF
S&
UT
P$
inM
illio
nsP
erce
ntag
eof
Adj
uste
dTo
tal
Inco
me
Boo
kP
erce
ntag
eof
Pre
tax
Boo
k
2010
Una
udit
edW
ith
UT
PF
iling
Col
umn
AB
ook
Col
umn
BTe
mpo
rary
Col
umn
CP
erm
anen
tC
olum
nD
Tax
Tota
lD
iffe
renc
eB
ook
Tem
pora
ryP
erm
anen
tTa
xTo
tal
Dif
fere
nce
Tem
pora
ryP
erm
anen
tTo
tal
Dif
fere
nce
Adj
uste
dgr
oss
profi
t29
,257
484
127
29,8
6861
19.
750.
160.
049.
950.
203.
30.
94.
2
Spec
ified
inco
me
44,9
255,
540
10,9
9561
,412
16,5
3414
.97
1.85
3.66
20.4
65.
5138
.275
.811
3.9
Adj
uste
dot
her
inco
me
with
diff
eren
ce22
5,91
9-3
,963
-2,6
5021
9,30
6-6
,613
75.2
8-1
.32
-0.8
873
.08
-2.2
0-2
7.3
-18.
3-4
5.6
Adj
uste
dto
tal
inco
me
300,
101
2,06
08,
472
310,
586
10,5
3210
0.00
0.69
2.82
103.
493.
5114
.258
.472
.6
Spec
ified
expe
nses
/ded
uctio
ns-9
5,61
8-1
,549
5,10
8-9
2,01
23,
558
-31.
86-0
.52
1.70
-30.
661.
19-1
0.7
35.2
24.5
Oth
erex
pens
es/d
educ
tions
with
diff
eren
ce-1
03,5
452,
778
1,07
0-9
9,69
73,
849
-34.
500.
930.
36-3
3.22
1.28
19.1
7.4
26.5
Adj
uste
dot
her
expe
nses
/ded
uctio
nsno
diff
eren
ce-8
6,42
50
0-8
6,42
50
-28.
800.
000.
00-2
8.80
0.00
0.0
0.0
0.0
Pret
axne
tin
com
e14
,514
3,28
914
,650
32,4
5317
,939
4.84
1.10
4.88
10.8
15.
9822
.710
0.9
123.
6
2010
Una
udit
edW
itho
utU
TP
Fili
ngC
olum
nA
Boo
kC
olum
nB
Tem
pora
ryC
olum
nC
Per
man
ent
Col
umn
DTa
xTo
tal
Dif
fere
nce
Boo
kTe
mpo
rary
Per
man
ent
Tax
Tota
lD
iffe
renc
eTe
mpo
rary
Per
man
ent
Tota
lD
iffe
renc
e
Adj
uste
dgr
oss
profi
t20
3,19
0-2
,239
8720
1,03
7-2
,153
40.2
3-0
.44
0.02
39.8
1-0
.43
-3.3
0.1
-3.2
Spec
ified
inco
me
121,
951
-2,1
29-1
8,91
010
0,89
6-2
1,03
924
.15
-0.4
2-3
.74
19.9
8-4
.17
-3.1
-27.
7-3
0.8
Adj
uste
dot
her
inco
me
with
diff
eren
ce17
9,90
7-5
,082
1,29
517
6,12
7-3
,787
35.6
2-1
.01
0.26
34.8
7-0
.75
-7.4
1.9
-5.5
Adj
uste
dto
tal
inco
me
505,
049
-9,4
50-1
7,52
947
8,06
0-2
6,97
910
0.00
-1.8
7-3
.47
94.6
6-5
.34
-13.
8-2
5.7
-39.
5
Spec
ified
expe
nses
/ded
uctio
ns-1
35,6
31-9
,390
-2,9
39-1
47,9
55-1
2,32
9-2
6.86
-1.8
6-0
.58
-29.
30-2
.44
-13.
7-4
.3-1
8.0
Oth
erex
pens
es/d
educ
tions
with
diff
eren
ce-1
27,3
36-2
,225
-2,5
22-1
32,0
84-4
,747
-25.
21-0
.44
-0.5
0-2
6.15
-0.9
4-3
.3-3
.7-6
.9
Adj
uste
dot
her
expe
nses
/ded
uctio
nsno
diff
eren
ce-1
73,7
530
0-1
73,7
530
-34.
400.
000.
00-3
4.40
0.00
0.0
0.0
0.0
Pret
axne
tin
com
e68
,328
-21,
065
-22,
990
24,2
74-4
4,05
513
.53
-4.1
7-4
.55
4.81
-8.7
2-3
0.8
-33.
6-6
4.5
2011
Una
udit
edW
ith
UT
PF
iling
Col
umn
AB
ook
Col
umn
BTe
mpo
rary
Col
umn
CP
erm
anen
tC
olum
nD
Tax
Tota
lD
iffe
renc
eB
ook
Tem
pora
ryP
erm
anen
tTa
xTo
tal
Dif
fere
nce
Tem
pora
ryP
erm
anen
tTo
tal
Dif
fere
nce
Adj
uste
dgr
oss
profi
t10
5,49
72,
609
342
108,
449
2,95
232
.95
0.81
0.11
33.8
80.
9214
.51.
916
.4
Spec
ified
inco
me
48,8
3327
813
,225
62,3
3213
,502
15.2
50.
094.
1319
.47
4.22
1.5
73.4
75.0
Adj
uste
dot
her
inco
me
with
diff
eren
ce16
5,80
051
7-8
2716
5,48
9-3
1151
.79
0.16
-0.2
651
.69
-0.1
02.
9-4
.6-1
.7
Adj
uste
dto
tal
inco
me
320,
130
3,40
312
,740
336,
270
16,1
4310
0.00
1.06
3.98
105.
045.
0418
.970
.789
.6
Spec
ified
expe
nses
/ded
uctio
ns-9
0,56
4-7
,682
3,70
4-9
4,53
8-3
,978
-28.
29-2
.40
1.16
-29.
53-1
.24
-42.
720
.6-2
2.1
Oth
erex
pens
es/d
educ
tions
with
diff
eren
ce-1
15,5
25-2
,622
5,07
4-1
13,0
732,
452
-36.
09-0
.82
1.58
-35.
320.
77-1
4.6
28.2
13.6
Adj
uste
dot
her
expe
nses
/ded
uctio
nsno
diff
eren
ce-9
6,03
00
0-9
6,03
00
-30.
000.
000.
00-3
0.00
0.00
0.0
0.0
0.0
Pret
axne
tin
com
e18
,011
-6,9
0021
,518
32,6
2814
,618
5.63
-2.1
66.
7210
.19
4.57
-38.
311
9.5
81.2
2011
Una
udit
edW
itho
utU
TP
Fili
ngC
olum
nA
Boo
kC
olum
nB
Tem
pora
ryC
olum
nC
Per
man
ent
Col
umn
DTa
xTo
tal
Dif
fere
nce
Boo
kTe
mpo
rary
Per
man
ent
Tax
Tota
lD
iffe
renc
eTe
mpo
rary
Per
man
ent
Tota
lD
iffe
renc
e
Adj
uste
dgr
oss
profi
t21
8,46
9-2
,970
121
5,46
4-2
,969
45.1
8-0
.61
0.00
44.5
6-0
.61
-2.7
0.0
-2.7
Spec
ified
inco
me
85,0
796,
692
4,36
796
,140
11,0
5917
.60
1.38
0.90
19.8
82.
296.
03.
99.
9
Adj
uste
dot
her
inco
me
with
diff
eren
ce17
9,95
170
1,51
318
1,53
51,
584
37.2
20.
010.
3137
.55
0.33
0.1
1.4
1.4
Adj
uste
dto
tal
inco
me
483,
499
3,79
25,
882
493,
139
9,67
410
0.00
0.78
1.22
101.
992.
003.
45.
38.
7
Spec
ified
expe
nses
/ded
uctio
ns-1
34,1
30-1
3,87
794
-147
,883
-13,
783
-27.
74-2
.87
0.02
-30.
59-2
.85
-12.
40.
1-1
2.3
Oth
erex
pens
es/d
educ
tions
with
diff
eren
ce-2
63,1
4512
8,13
13,
277
-131
,734
131,
407
-54.
4326
.50
0.68
-27.
2527
.18
114.
82.
911
7.7
Adj
uste
dot
her
expe
nses
/ded
uctio
nsno
diff
eren
ce-1
97,8
830
0-1
97,8
830
-40.
930.
000.
00-4
0.93
0.00
0.0
0.0
0.0
Pret
axne
tin
com
e-1
11,6
5911
8,04
59,
253
15,6
3912
7,29
8-2
3.09
24.4
11.
913.
2326
.33
105.
78.
311
4.0
COMMENTARY / SPECIAL REPORT
TAX NOTES, November 3, 2014 565
(C) T
ax Analysts 2014. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.