(FORTUNE Magazine) – DEFINITIONS AND EXPLANATIONS
All companies on the list must publish financial data and must report part or all of their figures to a government agency. Private companies and cooperatives that produce a 10-K are, therefore, included; subsidiaries of foreign companies incorporated in the U.S. are excluded. Revenues are as reported, including revenues from discontinued operations when they are published on a consolidated basis (except when the divested company's revenues equal 50% or more of the surviving company's revenues on an annualized basis). The revenues for commercial banks and savings institutions are interest and noninterest revenues. Revenues for insurance companies include premium and annuity income, investment income, and capital gains or losses, but exclude deposits. Revenues figures for all companies include consolidated subsidiaries and exclude excise taxes. Data shown are for the fiscal year ended on or before Jan. 31, 2006. Unless otherwise noted, all figures are for the year ended Dec. 31, 2005.
Profits are shown after taxes, after extraordinary credits or charges, if any, appear on the income statement, and after cumulative effects of accounting changes. Figures in parentheses indicate a loss. Profit declines of more than 100% reflect swings from 2004 profits to 2005 losses. Profits for real estate investment trusts, partnerships, and cooperatives are reported but are not comparable with those of the other companies on the list because they are not taxed on a comparable basis. Profits for mutual insurance companies are based on statutory accounting.
Assets are company's year-end total.
Stockholders' equity is the sum of all capital stock, paid-in capital, and retained earnings at the company's year-end. Redeemable preferred stock whose redemption is either mandatory or outside the control of the company is excluded. Dividends paid on such stock have been subtracted from the profit figures used in calculating the return on equity.
The market-value figure shown was arrived at by multiplying the number of common shares outstanding by the price per common share as of March 17, 2006. If companies have more than one class of shares outstanding and an equivalent share number is not available, the respective market values for each share class are calculated and combined.
EARNINGS PER SHARE
The figure shown for each company is diluted earnings per share that appears on the income statement. The reporting of diluted EPS started on Dec. 15, 1997, when the Financial Accounting Standards Board began to implement standard 128, requiring companies to change the way they report earnings per share. The 1995 figure used for the ten-year earnings-growth calculation is primary earnings per share. Per share earnings are adjusted for stock splits and stock dividends. They are not restated for mergers, acquisitions, or accounting changes (other than FASB 128). Though earnings-per-share numbers are not marked by footnotes, if a company's profits are footnoted it can be assumed that earnings per share are affected as well. The five-year and ten-year earnings-growth rates are the annual rates, compounded.
TOTAL RETURN TO INVESTORS
Total return to investors includes both price appreciation and dividend yield to an investor in the company's stock. The figures shown assume sales at the end of 2005 of stock owned at the end of 1995, 2000, and 2004, respectively. It has been assumed that any proceeds from cash dividends and stock received in spinoffs were reinvested when they were paid. Returns are adjusted for stock splits, stock dividends, recapitalizations, and corporate reorganizations as they occur; however, no effort has been made to reflect the cost of brokerage commissions or of taxes. Results are not listed if shares are not publicly traded or are traded on a limited basis. If companies have more than one class of shares outstanding, only the most widely held and actively traded class has been considered. Total return percentages shown are the returns received by the hypothetical investor described above. The five-year and ten-year returns are the annual rates, compounded.
The median figures in the tables refer only to results of companies in the FORTUNE 500 (or 1,000 for industry categories), and no attempt has been made to calculate them in groups of fewer than four companies. The medians for profit changes from 2004 do not include companies that lost money in 2004 or lost money in both 2004 and 2005, because no meaningful percentage changes can be calculated in such cases.
This FORTUNE 500 Directory was prepared under the direction of senior list editor L. Michael Cacace and senior reporter Richard K. Tucksmith. Income statement and balance sheet data were reviewed and verified against published earnings releases, 10-K filings, and annual reports by reporter Douglas G. Elam and accounting specialists Rhona Altschuler and Kathleen Lyons. Market specialist Kathleen Smyth used the same sources to check earnings per share data. In addition, she used data provided by SunGard Market Data Services Inc. to calculate total returns and market capitalization. Database administrator Larry Shine provided technical support. Debra Turner assisted with the data gathering and verification. The data verification process was aided by information provided by SNL Financial LC on commercial banks, savings banks, and real estate investment trusts, and by Mergent Inc., Thomson Corp., and 10-K Wizard on all companies filing 10-Ks.
* Reflects an extraordinary charge of at least 10%. < Reflects charge for cumulative effect of change in accounting of at least 10%. ‡ Decline is attributable to implementation in 2005 of new accounting for stock-based compensation. ¶ Includes revenues from discontinued operations of at least 10%. A cooperative. Excise taxes have been deducted. A partnership.
Figures are for fiscal year ended Jan. 31, 2006.
All data are preliminary. Company revised upward its preliminary loss but has not yet restated the balance sheet.
Acquired Unocal (2004 rank: 268), Aug. 10, 2005.
Changed name from ChevronTexaco, May 9, 2005.
Revenues exclude the discontinued operations of Genworth Financial (2005 rank: 223), spun off May 25, 2004.
Figures are for fiscal year ended Oct. 31, 2005.
Acquired MBNA (2004 rank: 171), Jan. 1, 2006.
Acquired Premcor (2004 rank: 136), Sept. 1, 2005.
Figures are for fiscal year ended March 31, 2005.
Figures do not include D&K Healthcare Resources (2004 rank: 636), acquired Aug. 30, 2005.
Acquired MCI (2004 rank: 90), Jan. 6, 2006.
Figures are for fiscal year ended June 30, 2005.
Figures are for four quarters ended Sept. 30, 2005. Employees are as of Dec. 31, 2004.
Figures are for fiscal year ended Sept. 30, 2005.
Figures are for fiscal year ended Aug. 31, 2005.
Figures are for fiscal year ended Nov. 30, 2005.
Acquired Pacificare Health Systems (2004 rank: 172), Dec. 20, 2005.
Acquired WellChoice (2004 rank: 342), Dec. 28, 2005.
Changed name from SBC Communications after acquiring AT&T Corp. (2004 rank: 56), Nov. 18, 2005.
Acquired Overnite (2004 rank: 873), Aug. 5, 2005.
Includes revenues from discontinued operations for the nine months ended Oct. 31, 2005.
Acquired Accredo Health (2004 rank: 914), Aug. 18, 2005.
Spun off Freescale Semiconductor (2005 rank: 368), Dec. 2, 2004.
Figures do not include Westcorp (2004 rank: 971), acquired March 1, 2006.
Changed name from Sprint after acquiring Nextel Communications (2004 rank: 157), Aug. 12, 2005.
Figures are for fiscal year ended May 31, 2005.
Figures do not include York International (2004 rank: 432), acquired Dec. 9, 2005.
Figures are for fiscal year ended Feb. 28, 2005.
Figures are for fiscal year ended July 31, 2005.
Figures do not include Scientific-Atlanta (2005 rank: 831), acquired Feb. 27, 2006.
Acquired May Department Stores (2004 rank: 147), Aug. 29, 2005.
Spun off Hospira (2005 rank: 660), May 3, 2004.
Acquired Providian Financial (2004 rank: 619), Oct. 3, 2005.
Figure as of Sept. 30, 2005.
Acquired Priority Healthcare (2004 rank: 838), Oct. 14, 2005.
Changed name from Viacom after spinning off the new Viacom (2005 rank: 241), Dec. 29, 2005.
Acquired Hibernia Corp. (2004 rank: 970), Nov. 16, 2005.
Figures do not include Siebel Systems (2005 rank: 999), acquired Jan. 31, 2006.
Figures are for four quarters ended July 31, 2005. Employees are as of Oct. 31, 2004.
Figures are for fiscal year ended April 30, 2005.
Figures are for four quarters ended Oct. 31, 2005. Employees are as of Jan. 31, 2005.
Figures do not include Storage Technology (2004 rank: 704), acquired Aug. 31, 2005.
Spun off from General Electric (2005 rank: 7), May 25, 2004.
Spun off from the old Viacom, now CBS (2005 rank: 149), Dec. 29, 2005.
Acquired Western Wireless (2004 rank: 781), Aug. 1, 2005.
Acquired Titan (2004 rank: 741), July 29, 2005.
Acquired USF (2004 rank: 665), May 24, 2005.
Changed name from Yellow Roadway, Jan. 4, 2006.
Figures do not include Dex Media (2005 rank: 914), acquired Jan. 31, 2006.
Spun off Liberty Global (2005 rank: 408), June 7, 2004.
Figures are for four quarters ended Oct. 31, 2005.
Acquired Caesars Entertainment (2004 rank: 401), June 13, 2005.
Acquired Mandalay Resort Group (2004 rank: 594), April 25, 2005.
Revenue and net income are for four quarters ended Sept. 30, 2005; assets and equity as of Dec. 31, 2004.
Rank shown for 2004 was based on data corrected after publication last year.
Figure as of Oct. 31, 2005.
Spun off from Viacom, now CBS (2005 rank:149), Oct. 13, 2004.
Spun off from Motorola (2005 rank: 54), Dec. 2, 2004.
Changed name from Ryerson Tull, Jan. 1, 2006.
Acquired NeighborCare (2004 rank: 937), July 28, 2005.
Spun off from Liberty Media (2005 rank: 277), June 7, 2004.
Spun off GameStop (2005 rank: 601), Nov. 2, 2004.
Acquired America West Holdings (2004 rank: 678), Sept. 27, 2005. For accounting purposes, however, the company is treating America West as the acquirer.
Changed name from Hershey Food, April 19, 2005.
Changed name from Borden Chemical, June 1, 2005.
Changed name from Tenneco Automotive, Oct. 28, 2005.