46.1% of S&P 500 Company Sales Were Derived From Outside of the United States in 2011; Downward Trend Continues

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46.1% of S&P 500 Company Sales Were Derived From Outside of the United States in 2011; Downward Trend Continues

Published on Thursday, 09 August 2012 09:37 Written by TradersHuddle Staff

S&P Dow Jones Indices Also Reports That 54.7% of Declared Income Taxes Went to Foreign Countries Last Year

NEW YORK, Aug. 9, 2012 /PRNewswire/ -- S&P 500 companies with full reporting information posted 46.1% of their sales from outside of the United States in 2011, down slightly from the 46.3% reported in 2010 and the 46.6% posted in 2009, and significantly below the 47.9% recorded in 2008 according to research published today by S&P Dow Jones Indices. The data is derived from the 252 companies within the S&P 500 that have full reporting information.

"While the percentage of foreign sales posted a slight tick-downward in 2011, we believe that multiple changes in currency, index membership and contract details negate any strong implication to the third yearly drop," says Howard Silverblatt, S&P Dow Jones Indices' Senior Index Analyst and author of the report.

According to the report, sales to European countries declined to 11.1% of all S&P 500 sales in 2011 from 13.5% in 2010, with sales to the United Kingdom increasing to 2.4% from 1.4% in 2010. "European ex-U.K. sales fell to 8.7% in 2011 from 12.0% in 2010 representing the impact that the European recession is having on U.S. issues," adds Silverblatt.

On a country by country basis, Canada reversed its 2010 decline and accounted for 9.3% of all 2011 foreign sales, compared to 4.1% in 2010 and 7.4% in 2009. Japan improved to 0.72% of all sales from 0.51% in 2010, which was substantially down from 1.52% in 2009.

Looking at sectors, Information Technology continues to dominate with over 56.3% of its declared sales coming from outside of the United States as Financials declined to 34.7% in 2011 from the 37.1% reported in 2010.

S&P Dow Jones Indices also determined that total income taxes paid to foreign entities increased 21% in 2011 as U.S. payments increased 15% with S&P 500 issues sending a cumulative USD $142 billion to non-U.S. governments and USD $117 billion to the U.S. government.

"In 2011, S&P 500 issues paid more income tax to foreign countries than to the U.S. government," notes Silverblatt. "Only 45.3% of all income taxes paid by U.S. companies went to Washington in 2011 versus 54.7% paid abroad. Tax policy has become a major issue, even before election posturing started, with the current trend not working in favor of the U.S."

The full report, S&P 500: 2011 Global Sales, can be accessed by going to: www.spindices.com. Report is posted under "Resources."

S&P Dow Jones Indices
S&P 500 2011 Global Sales Report
Sectors

% OF TOTAL SALES
	2011	2010	2009	2008	2007	2006	2005
Consumer Discretionary	42.28%	42.98%	42.43%	44.05%	42.46%	38.76%	37.28%
Consumer Staples	46.99%	45.61%	46.56%	46.95%	39.06%	36.57%	37.51%
Energy	39.29%	38.86%	43.66%	50.47%	55.69%	56.50%	56.62%
Financials	34.67%	37.05%	40.19%	34.09%	31.59%	29.93%	31.36%
Health Care	52.42%	49.82%	47.21%	48.61%	44.54%	41.76%	37.54%
Industrials	47.96%	45.06%	44.21%	46.14%	44.11%	41.14%	39.68%
Information Technology	56.52%	56.30%	56.02%	55.27%	55.38%	53.50%	54.86%
Materials	53.71%	52.46%	52.06%	49.66%	46.99%	42.22%	40.81%
Telecommunication Services	N/M	18.68%	15.10%
Utilities	N/M	84.29%	81.97%	52.18%	55.16%	63.60%	60.48%
Total Non-U.S. 15%-85%	46.14%	46.29%	46.57%	47.94%	45.84%	43.55%	43.26%
Source: S&P Dow Jones Indices

S&P Dow Jones Indices
S&P 500 2011 Global Sales Report
Regions

REGION	FOREIGN	% OF	FOREIGN	% OF	FOREIGN	% OF
	SALES 2011	FOREIGN	SALES 2010	FOREIGN	SALES 2009	FOREIGN
	US$ MILLIONS	SALES	US$ MILLIONS	SALES	US$ MILLIONS	SALES
Africa	$208,602	7.95%	$148,103	6.47%	$160,559	7.94%
Asia	$407,381	15.52%	$300,065	13.11%	$356,739	17.65%
Australia	$11,953	0.46%	$6,025	0.26%	$5,439	0.27%
Europe	$630,172	24.01%	$666,398	29.12%	$516,690	25.57%
North America	$248,427	9.47%	$104,115	4.55%	$157,659	7.80%
South America	$148,820	5.67%	$97,628	4.27%	$108,750	5.38%
Foreign Countries	$969,181	36.93%	$966,145	42.22%	$715,176	35.39%
Total	$2,624,537	100.00%	$2,288,479	100.00%	$2,021,012	100.00%
Source: S&P Dow Jones Indices

S&P Dow Jones Indices
S&P 500 2011 Global Sales Report
Income Taxes

S&P 500 2011 INCOME TAXES PAID, US$
	2011	2010	2009	2008	2007	2006	2005
FOREIGN US$ MILLION	$141,639	$117,341	$91,876	$135,129	$123,610	$112,686	$91,794
U.S. US$ MILLION	$117,337	$101,662	$92,667	$107,205	$151,104	$155,269	$141,471

FOREIGN % OF TOTAL	54.7%	53.6%	49.8%	55.8%	45.0%	42.1%	39.4%
U.S. % OF TOTAL	45.3%	46.4%	50.2%	44.2%	55.0%	57.9%	60.6%
Source: S&P Dow Jones Indices

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SOURCE S&P Dow Jones Indices