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End of interest deductibility: who could be hurt?
Below we provide a screen of the top 50 S&P 500 companies (excluding Financials, Real
Estate and Utilities) by high net interest expense as a percentage of net income, which
could potentially be hurt by an end to the deductibility of interest expense.

Table 21: S&P 500 (ex. Financials, Real Estate & Utilities) with high net interest expense as a % of net income
Ticker Company Sector Industry Net Interest Expense (% of L12M Net Income)
CHTR Charter Communications, Inc. Class A Consumer Discretionary Media 1387%
DVN Devon Energy Corporation Energy Oil, Gas & Consumable Fuels 467%
CXO Concho Resources Inc. Energy Oil, Gas & Consumable Fuels 357%
MU Micron Technology, Inc. Information Technology Semiconductors & Semiconductor 316%
FCX Freeport-McMoRan, Inc. Materials Metals & Mining 280%
OKE ONEOK, Inc. Energy Oil, Gas & Consumable Fuels 135%
KMI Kinder Morgan Inc Class P Energy Oil, Gas & Consumable Fuels 120%
LVLT Level 3 Communications, Inc. Telecommunication Services Diversified Telecommunication 96%
WYNN Wynn Resorts, Limited Consumer Discretionary Hotels Restaurants & Leisure 95%
CTL CenturyLink, Inc. Telecommunication Services Diversified Telecommunication 94%
CF CF Industries Holdings, Inc. Materials Chemicals 92%
NFX Newfield Exploration Company Energy Oil, Gas & Consumable Fuels 82%
RIG Transocean Ltd. Energy Energy Equipment & Services 81%
NFLX Netflix, Inc. Consumer Discretionary Internet & Direct Marketing Re 80%
SE Spectra Energy Corp Energy Oil, Gas & Consumable Fuels 78%
TDG TransDigm Group Incorporated Industrials Aerospace & Defense 77%
HCA HCA Holdings, Inc. Health Care Health Care Providers & Servic 63%
MPC Marathon Petroleum Corporation Energy Oil, Gas & Consumable Fuels 56%
CAT Caterpillar Inc. Industrials Machinery 56%
EVHC Envision Healthcare Corp. Health Care Health Care Providers & Servic 55%
URI United Rentals, Inc. Industrials Trading Companies & Distributo 54%
DVA DaVita Inc. Health Care Health Care Providers & Servic 52%
TGNA TEGNA, Inc. Consumer Discretionary Media 52%
DE Deere & Company Industrials Machinery 50%
MAS Masco Corporation Industrials Building Products 49%
ENDP Endo International Plc Health Care Pharmaceuticals 48%
COTY Coty Inc. Class A Consumer Staples Personal Products 47%
IP International Paper Company Materials Containers & Packaging 47%
R Ryder System, Inc. Industrials Road & Rail 46%
DLTR Dollar Tree, Inc. Consumer Discretionary Multiline Retail 46%
NEM Newmont Mining Corporation Materials Metals & Mining 46%
FOX Twenty-First Century Fox, Inc. Class B Consumer Discretionary Media 46%
GT Goodyear Tire & Rubber Company Consumer Discretionary Auto Components 45%
RSG Republic Services, Inc. Industrials Commercial Services & Supplies 45%
SEE Sealed Air Corporation Materials Containers & Packaging 45%
PBI Pitney Bowes Inc. Industrials Commercial Services & Supplies 45%
AN AutoNation, Inc. Consumer Discretionary Specialty Retail 44%
KSS Kohl's Corporation Consumer Discretionary Multiline Retail 44%
F Ford Motor Company Consumer Discretionary Automobiles 43%
VIAB Viacom Inc. Class B Consumer Discretionary Media 42%
MNK Mallinckrodt Plc Health Care Pharmaceuticals 41%
ADS Alliance Data Systems Corporation Information Technology IT Services 41%
WRK WestRock Co. Materials Containers & Packaging 40%
VRTX Vertex Pharmaceuticals Incorporated Health Care Biotechnology 39%
BLL Ball Corporation Materials Containers & Packaging 37%
GE General Electric Company Industrials Industrial Conglomerates 37%
M Macy's Inc Consumer Discretionary Multiline Retail 37%
CVX Chevron Corporation Energy Oil, Gas & Consumable Fuels 37%
SLB Schlumberger NV Energy Energy Equipment & Services 37%
TSO Tesoro Corporation Energy Oil, Gas & Consumable Fuels 36%

Note: This screen is not a recommended list either individually or as a group of stocks. Investors should consider the fundamentals of the companies and their own individual circumstances/objective before making any
investment decisions.
Source: FactSet, BofA Merrill Lynch US Equity & US Quant Strategy

Bank of America
Merrill Lynch
Equity Strategy Focus Point | 29 January 2017 21
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