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Tax reform screens
Lower US corporate tax rate: potential beneficiaries
Below we provide a screen of domestically-oriented S&P 500 companies (<10% foreign sales exposure) with a high (>35%) median 5-year effective tax rate which could potentially benefit most from a lower US corporate tax rate.

Table 19: S&P 500 companies with high (>35%) median 5-year effective tax rates and low (<10%) foreign sales

Ticker Company Name Sector Industry Foreign Sales % 5-Year Median Effective Tax Rate %
CHTR Charter Communications, Inc. Class A Consumer Discretionary Media 0% 445.3
DVN Devon Energy Corporation Energy Oil Gas & Consumable Fuels 8% 58.3
REGN Regeneron Pharmaceuticals, Inc. Health Care Biotechnology 0% 44.3
COG Cabot Oil & Gas Corporation Energy Oil Gas & Consumable Fuels 0% 43.5
EOG EOG Resources, Inc. Energy Oil Gas & Consumable Fuels 5% 42.3
RRC Range Resources Corporation Energy Oil Gas & Consumable Fuels 0% 41.9
CNC Centene Corporation Health Care Health Care Providers & Services 0% 41.4
ABC AmerisourceBergen Corporation Health Care Health Care Providers & Services 0% 40.2
CNP CenterPoint Energy, Inc. Utilities Multi-Utilities 0% 39.7
AWK American Water Works Company, Inc. Utilities Water Utilities 0% 39.4
SWN Southwestern Energy Company Energy Oil Gas & Consumable Fuels 0% 39.3
CVS CVS Health Corporation Consumer Staples Food & Staples Retailing 0% 39.3
WFM Whole Foods Market, Inc. Consumer Staples Food & Staples Retailing 3% 38.7
CMG Chipotle Mexican Grill, Inc. Consumer Discretionary Hotels Restaurants & Leisure 1% 38.5
JWN Nordstrom, Inc. Consumer Discretionary Multiline Retail 0% 38.5
AN AutoNation, Inc. Consumer Discretionary Specialty Retail 0% 38.5
TROW T. Rowe Price Group Financials Capital Markets 0% 38.4
KMX CarMax, Inc. Consumer Discretionary Specialty Retail 0% 38.2
PEG Public Service Enterprise Group Inc Utilities Multi-Utilities 0% 38.2
JBHT J.B. Hunt Transport Services, Inc. Industrials Road & Rail 0% 38.1
ULTA Ulta Salon, Cosmetics & Fragrance, Inc. Consumer Discretionary Specialty Retail 0% 38.1
CHK Chesapeake Energy Corporation Energy Oil Gas & Consumable Fuels 0% 38.0
AEE Ameren Corporation Utilities Multi-Utilities 0% 37.9
ALK Alaska Air Group, Inc. Industrials Airlines 0% 37.9
CTL CenturyLink, Inc. Telecommunication Services Diversified Telecommunication Services 0% 37.8
UNP Union Pacific Corporation Industrials Road & Rail 0% 37.7
ROST Ross Stores, Inc. Consumer Discretionary Specialty Retail 0% 37.7
LOW Lowe's Companies, Inc. Consumer Discretionary Specialty Retail 8% 37.6
BBY Best Buy Co., Inc. Consumer Discretionary Specialty Retail 8% 37.5
AAP Advance Auto Parts, Inc. Consumer Discretionary Specialty Retail 0% 37.5
LUV Southwest Airlines Co. Industrials Airlines 0% 37.4
SYF Synchrony Financial Financials Consumer Finance 0% 37.2
DLTR Dollar Tree, Inc. Consumer Discretionary Multiline Retail 8% 37.2
SCHW Charles Schwab Corporation Financials Capital Markets 0% 37.2
NAVI Navient Corp Financials Consumer Finance 0% 37.2
CAH Cardinal Health, Inc. Health Care Health Care Providers & Services 4% 37.1
CXO Concho Resources Inc. Energy Oil Gas & Consumable Fuels 0% 37.1
DFS Discover Financial Services Financials Consumer Finance 0% 37.1
DGX Quest Diagnostics Incorporated Health Care Health Care Providers & Services 2% 37.1
CSRA CSRA, Inc. Information Technology IT Services 0% 37.1
DG Dollar General Corporation Consumer Discretionary Multiline Retail 0% 37.0
XEC Cimarex Energy Co. Energy Oil Gas & Consumable Fuels 0% 37.0
WEC WEC Energy Group Inc Utilities Multi-Utilities 0% 36.9
CSX CSX Corporation Industrials Road & Rail 0% 36.9
CTAS Cintas Corporation Industrials Commercial Services & Supplies 9% 36.9
ORLY O'Reilly Automotive, Inc. Consumer Discretionary Specialty Retail 0% 36.7
KSS Kohl's Corporation Consumer Discretionary Multiline Retail 0% 36.7
BBBY Bed Bath & Beyond Inc. Consumer Discretionary Specialty Retail 0% 36.6
TSCO Tractor Supply Company Consumer Discretionary Specialty Retail 0% 36.6
HUM Humana Inc. Health Care Health Care Providers & Services 0% 36.5
TSO Tesoro Corporation Energy Oil Gas & Consumable Fuels 0% 36.5
ESRX Express Scripts Holding Company Health Care Health Care Providers & Services 0% 36.4
HD Home Depot, Inc. Consumer Discretionary Specialty Retail 9% 36.4
CME CME Group Inc. Class A Financials Capital Markets 0% 36.4
UNH UnitedHealth Group Incorporated Health Care Health Care Providers & Services 4% 36.4
PAYX Paychex, Inc. Information Technology IT Services 1% 36.3
NSC Norfolk Southern Corporation Industrials Road & Rail 0% 36.2
M Macy's Inc Consumer Discretionary Multiline Retail 0% 36.2
RAI Reynolds American Inc. Consumer Staples Tobacco 5% 36.1
CMCSA Comcast Corporation Class A Consumer Discretionary Media 8% 35.8
AZO AutoZone, Inc. Consumer Discretionary Specialty Retail 6% 35.7
UHS Universal Health Services, Inc. Class B Health Care Health Care Providers & Services 0% 35.5
AET Aetna Inc. Health Care Health Care Providers & Services 2% 35.5
DVA DaVita Inc. Health Care Health Care Providers & Services 0% 35.4

Bank of America
Merrill Lynch
Equity Strategy Focus Point | 29 January 2017 19
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