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A First Look at 2007 Schedule M-3 Reporting by Large Corporations

Posted on July 8, 2013 by Charles E. BoyntonPortia DeFilippesEllen J. LegelTodd J. Reum

This document originally appeared in the August 15, 2011 edition of Tax Notes.

 


Charles E. Boynton (charles.e.boynton@irs.gov) is a program manager and senior program analyst with the Office of Planning, Analysis, Inventory, and Research (PAIR), IRS Large Business & International Division (LB&I). He was a Stanley S. Surrey Senior Research Fellow at Treasury's Office of Tax Analysis (OTA), and was a member of the Treasury-IRS Schedule M-3 team at its formation in 2003. Portia DeFilippes (portia.defilippes@do.treas.gov) is a financial economist in OTA's Economic Modeling and Computer Application Division. She has been a coauthor on many corporate tax studies. Ellen J. Legel (ellen.j.legel@irs.gov) is a senior economist and Schedule M-3 analyst with PAIR. She has held various positions with the IRS Statistics of Income Division (SOI), most recently as a senior staff economist and management official with the Corporation Tax Branch. At SOI she was lead analyst for the Schedule M-3 from 2004-2009. Todd J. Reum (todd.j.reum@irs.gov) is an economist at SOI's Corporate Branch. He has held various positions, most recently as a corporate tax program lead analyst with responsibilities that include Schedule M-3.

 

The authors thank SOI for making data from the 2006 and 2007 SOI final corporate file available. They thank the managements of their respective agencies for the support of their research: PAIR; OTA; and SOI. They also thank Robert Adams, Thomas Brandt, James Clarkson, Amy Dunbar, Petro Lisowsky, Barbara Livingston, Bunn Martin, John Miller, Lillian Mills, Don McPartland, Heather Parisi, George Plesko, Darla Riggan, David Stanley, Kenneth Szeflinski, Erin Towery, and William Wilson for support, encouragement, comments, suggestions, and assistance. The opinions expressed are those of the authors and do not necessarily represent positions of the U.S. Department of the Treasury or the Internal Revenue Service.

The 2006 and 2007 Form 1120 Schedule M-3 data set developed for this study is available as a ZIP file in an Excel format on request from charles.e.boynton@irs.gov. The data set also includes forms 1120-L, 1120-PC, and 1120-S Schedule M-3 data. The study emphasizes the importance of the largest corporations to the U.S. corporate tax system and also the importance of "mixed groups," tax consolidated groups with a non-insurance parent and one or more insurance subsidiaries.


Copyright 2011 Charles E. Boynton, Portia DeFilippes,
Ellen J. Legel, and Todd J. Reum.
All rights reserved.

 

 


Table of Contents


I. Introduction

 

 


II. Introduction of Schedule M-3 in 2004


III. 2006/2007 Supporting Documentation


References


I. Introduction


A. Overview

For tax years 2006 and later, the new Schedule M-3 reconciliation of book income and tax income is required for most corporations with total assets of $10 million or more. Schedule M-3, which was introduced for many corporations in 2004, replaced four decades of use of the Schedule M-1 reconciliation.1

The goal for Schedule M-3 is to encourage general tax compliance by all corporate taxpayers by promoting transparency with the IRS and by assisting the IRS to identify returns and issues for possible audit when tax compliance risk is present.

This is the fifth part in a series of reports by the authors researching the differences between book income and tax income as reported on U.S. corporate income tax returns.2 The first two reports analyze corporate Form 1120 Schedule M-1 reporting for tax years 1990-2003. The third report in this series analyzes advance file data for the 2004 corporate Form 1120 Schedule M-3. The fourth report analyzes final data for the 2005 corporate Form 1120 Schedule M-3 and updates the prior 2004 report using final 2004 data. This fifth report analyzes final data for the 2006 and 2007 corporate Form 1120 Schedule M-3 as well as earlier data from 1994 through 2005.

B. Organization of This Report

 


In Table 1A we summarize 2006 and 2007 Schedule M-3 data and other tax data for corporations filing the Form 1120, "U.S. Corporate Income Tax Return," for tax years ending July 2006 through June 2007 (Statistics of Income 2006 file) and July 2007 through June 2008 (SOI 2007 file), reporting end-of-year total assets of $10 million or more on the Form 1120 Schedule L balance sheet, and meeting specified minimum data and reconciliation tests.3 In tables 1B, 1C, and 2 through 5, we present and analyze 2007 Form 1120 tax return and Schedule M-3 data. Tables 1A, 1B, and 1C present Schedule M-3 data in the format of an aggregate Schedule M-3 following the rows and columns of that reconciliation form. Tables 2 through 5 are distribution tables that partition with various rows a fixed set of 20 columns of data corresponding to 20 rows highlighted in tables 1A, 1B, and 1C. Table 6 reconciles our data sample for 2007 with the SOI 2007 corporate file, and the discussion summarizes our minimum data and reconciliation requirements. Table 7 presents combined schedules M-1 and M-3 data for 1994 through 2007. These data are summarized graphically in figures 1, 2, and 3. The report concludes with a special section by two of the authors (Legel and Reum) examining the content of attachments for the Schedule M-3 Parts II and III "other with difference" lines and the Part I other adjustments line.

 

C. Pretax Benchmark and Sign Conventions

 


We calculate all book income versus tax income differences as pretax differences -- that is, as the difference between the pretax book (measured before federal income tax expense) and the tax amounts (also pretax) reported on Schedule M-3. We do this so that we are always comparing pretax amounts -- that is, book income before the recognition of federal income tax expense compared with tax income for federal income tax -- consistent with the book income versus tax income differences literature since Talisman (2000). To do this for the total amounts and differences reported on Schedule M-3, Part II, line 30, we must back out federal income tax expense from the columns (a), (b), and (c) reconciliation amounts reported by taxpayers on that line.

 

The book-tax literature before the introduction of Schedule M-3 defines the sign of the difference between pretax book income and tax income as "book minus tax" resulting in a positive difference if the book amount is higher than the tax amount. Schedule M-3 effectively reverses this convention by the nature of its reconciliation rules. For Schedule M-3, the temporary and permanent adjustment amounts reported in columns (b) and (c) of Parts II and III are the amounts that are added to column (a) book income to determine column (d) tax income. The sum of columns (a), (b), and (c) must equal column (d) for Schedule M-3 reconciliation. Stated differently, the total book-tax adjustment in columns (b) and (c) must equal column (d) tax income minus column (a) book income (tax minus book). A positive total difference in columns (b) and (c) of Schedule M-3 Parts II and III means that the tax amount is higher than the book amount. A negative total difference in columns (b) and (c) of Schedule M-3 Parts II and III means that the tax amount is lower than the book amount.

A reference to a negative pretax difference in our text, tables, and figures in all cases means that pretax book income is higher than tax income.

D. Pretax Book Income Versus Tax Income

 


Figure 1 compares pretax book income from Form 1120 schedules M-1 or M-3 and Form 1120, page 1, line 28 tax net income for 1994-2007 for corporations filing Form 1120 with $10 million or more in assets and filing either a Schedule M-1 or Schedule M-3. The period 1994-2003 is the 10-year period preceding the 2004 introduction of Schedule M-3 for many corporations. The data for Figure 1 is extracted from Table 7.

 

Figure 1 shows that Form 1120 Schedule M-1 pretax book income exceeded Form 1120, page 1, line 28 tax net income from 1994 through 2000, fell below tax net income in 2001 (a year that included the disruptions associated with the September 11 attacks), and rose above tax net income in 2002 and 2003. Pretax book income continued above tax net income in 2004 when the Form 1120 Schedule M-3 was introduced. It remained above tax net income through 2006 and fell below tax net income in 2007, the onset of a historic recession. Pretax book income may be expected to fall below tax net income during an economic downturn because financial accounting is quicker to recognize losses than tax income.

Figure 2 shows 1994-2007 Form 1120 schedules M-1 and M-3 book-tax difference as tax net income minus pretax book income following the Schedule M-3 sign convention. The book-tax-difference adjustment to pretax book income for 1994-2000 is negative because pretax book income exceeds tax net income as shown in Figure 1. The book-tax-difference adjustment is positive in 2001, negative in 2002-2006, and positive in 2007. From 1994 to 1995, pretax book income and tax net income rise approximately the same amount, and the book-tax-difference adjustment is approximately the same. From 1996 to 1999, pretax book income is rising faster than tax net income (in fact, tax net income falls in 1998), and the book-tax-difference adjustment is increasingly negative. In 2000 pretax income falls slightly and tax net income rises slightly, both acting to decrease the negative amount of the book-tax-difference adjustment. In 2001, a year that includes repercussions from the collapse of the tech bubble and the turmoil of September 11, tax net income falls but pretax book plummets, and the book-tax-difference adjustment turns positive. In 2002 and 2003 pretax book income increases dramatically and tax net income increases less dramatically, leading to a marked increase in the negative book-tax-difference adjustment. In 2004 Schedule M-3 replaces Schedule M-1, and the increase in pretax book income is small compared with the increase in tax net income, leading to a less negative book-tax-difference adjustment. In 2005 tax income dramatically increases, perhaps because of the one-year foreign dividend repatriation holiday. Foreign dividends included in tax net income in 2005 were subject to an 85 percent special deduction before inclusion in taxable income. Pretax book income also increased, but less dramatically than tax net income, resulting in a reduction in the negative book-tax-difference adjustment. In 2006 both pretax book income and tax net income fell, but tax income fell more, resulting in an increase in the negative book-tax-difference adjustment. In 2007 both pretax book income and tax net income fell, but pretax book income fell more and the book-tax-difference adjustment turned positive.

Figure 3 expresses the aggregate book-tax-difference adjustment as a percentage of aggregate pretax book income.4 From 1994 to 1997, the book-tax-difference adjustment was relatively steady at about -20 percent of pretax book income. From 1998 to 2000, it was dramatically greater at more than -30 percent of pretax book income, reflecting a fall in tax net income in 1998 followed by slow growth in 1999 and 2000 and a general rise in pretax book income for 1998 and 1999 followed by a slight fall in 2000. The turmoil of 2001 shows a sharp positive peak in the book-tax-difference adjustment, to more than +20 percent of pretax book, followed by a return to negative adjustments in 2002 at about -20 percent of pretax book, falling to approximately -40 percent of pretax book in 2003. In 2005 and 2006 the negative book-tax-difference adjustment is approximately -10 percent of pretax book income. In 2007 the positive book-tax-difference adjustment is approximately +10 percent of pretax book income.

E. Source of the 1994-2007 Tax Return Data

 


A statistical sample of tax return data is electronically encoded annually by SOI for use by Treasury's Office of Tax Analysis (OTA) and the Joint Committee on Taxation. The Office of Planning, Analysis, Inventory, and Research (PAIR) within the IRS Large Business and International Division also receives a copy of the file.5 These data include Schedule M-1 data and, beginning with 2004, Schedule M-3 data. The annual SOI corporate file is issued to OTA, JCT, and LB&I in two versions in the second calendar year following the July-June tax year (in calendar 2009 for tax year 2007 -- that is, for corporate tax years ending July 2007 to June 2008). The advance file is prepared May 1, and the final file is prepared October 1. The advance file contains several placeholder records and uses tentative weights. The final file has very few placeholder records and uses final weights. Placeholder records (generally return data from the prior tax year) represent returns that are for some reason not yet available at the time the SOI file is issued but are desired for statistical purposes.6

 

Researchers using SOI data may report only aggregate tax data for a minimum of three taxpayers to protect taxpayer confidentiality.7 For statistical reasons, SOI prefers that reported aggregate data are reported for 10 or more taxpayers whenever possible.8

SOI annually summarizes selected tax return data from the final corporate file in Publication 16, Corporate Income Tax Returns. Corporate tax data in the 2007 final file prepared September 30, 2009, are summarized in the 2007 SOI Publication 16 published in 2010. Our tax return table values may not add and may differ from official 2007 SOI Publication 16 values because of rounding.9

SOI Publication 16 data may be downloaded at http://www.irs.gov/taxstats/bustaxstats/article/0,,id=112834,00.html.

See the discussion of our Table 6 for our reconciliation to the posted SOI 2007 Schedule M-3 data.


II. Introduction of Schedule M-3 in 2004


A. Why Introduce Schedule M-3?

A Treasury report in 1999 and Treasury testimony in 2000 by Assistant Secretary for Tax Policy Jonathan Talisman noted the growing difference from 1991 to 1997 between pretax book income on Schedule M-1 and tax net income on page 1 of Form 1120. Both the report and the testimony viewed the 1990s' widening difference between book income and tax income as a possible indicator of corporate tax shelter activity, but it also noted the difficulty in interpreting Schedule M-1 book-tax difference data.10 Mills and Plesko (2003) proposed a redesign of Schedule M-1 to increase the transparency of the corporate tax return book-tax reconciliation and to improve data interpretability.11 The Mills and Plesko (2003) Schedule M-1 recommendations are largely reflected in Schedule M-3, particularly in Part I.12

B. The Structure of Schedule M-3

 


Part I of Schedule M-3 reconciles worldwide consolidated financial statement income with income-per-income statements of includable corporations (members of the tax return consolidation group listed on Form 851), also known as book income. Parts II and III reconcile income per income statements of includable corporations (book income) with tax net income on Form 1120, page 1, line 28. Differences between book income and tax income are characterized as temporary or permanent. In brief, temporary differences are items of income or expense that are recognized for both financial and tax reporting but appear in different time periods. Permanent differences are items of income or expense that are recognized for either financial or tax reporting, but not both. A more detailed discussion of temporary and permanent differences follows below.

 

The goal of the Schedule M-3 is greater transparency and uniform organization in the comparison of book income and tax income data made at the time of return filing so that the data may be used to determine what returns will and will not be audited and to determine what issues will and will not be examined on the returns selected for audit.

Part I of Schedule M-3 is important. It defines the starting point for the book-tax reconciliation for the first time in corporate tax history. On Schedule M-1 we know where the reconciliation ends (tax net income), but not where it begins (book income). Schedule M-1 never defined book income. It was left to taxpayers to define book income for themselves.

Schedule M-3, Part I, line 11 and Part II, line 30, column (a) (which must be equal to Part I, line 11) define the financial income of the tax consolidated group, that is, book income, and is what should have been reported on Schedule M-1, line 1 (but may not have been what some reported). The important intermediary steps in Schedule M-3, Part I, help delineate book-tax differences related to consolidation differences only (Part I, lines 4 through 11) versus book-tax differences related to income and expenses for the tax reporting group only (parts II and III, respectively). Schedule M-3 Part I is one of the revisions proposed by Mills and Plesko (2003).

Parts II and III reconcile financial net income of includable corporations (book income) to taxable income reported on Form 1120, page 1, line 28. Part II generally reconciles items of income, gain, and loss. Part III deals with expense and deduction items.

Parts II and III contain four columns to identify and differentiate the book and tax aspects of each line item for the tax consolidated group. Column (a) represents financial statement income or expense amounts maintained in the corporation's books and records, using the income statement source determined in Part I. Column (d) represents amounts as reflected in the tax return. For each line item, the difference between the amount shown in column (a) and the amount shown in column (d) is shown either as a temporary difference in column (b) or as a permanent difference in column (c). The clear statement of both the book and tax amounts, as well as the reconciling differences, aids the IRS in setting materiality thresholds for the reconciling differences shown.

The reporting of column (a) book income amounts and column (d) tax income amounts is optional for the first year a corporation is required to file Schedule M-3.

The detail required by parts II and III is enhanced by the differentiation of temporary and permanent differences. Temporary (timing) differences occur because tax laws require the recognition of some items of income and expense in different periods than those required for book purposes. There are four basic categories of temporary differences:

  • income recognized in financial statements before it is taxable;
  • income reported as taxable before it is recognized in financial statements;
  • expenses recognized in financial statements before they are deducted on the tax return; and
  • expenses deductible on the tax return before they are recognized on financial statements.


By their very nature, temporary differences involve issues regarding the correct year under book rules and tax rules for the item's inclusion in income or deduction (expense).13

In contrast to temporary differences, permanent differences are adjustments that arise as a result of fundamental permanent differences in financial and tax accounting rules. Those differences result from transactions that will not reverse in subsequent periods. In financial statement reporting under generally accepted accounting principles, permanent differences are not considered in the Statement of Financial Accounting Standards No. 109 computation of deferred tax assets and liabilities, but do have a direct impact on the effective tax rate. Therefore, permanent differences may substantially influence reported financial earnings per share computations and in the case of public companies, stock prices. Accordingly, permanent differences of a given size may represent a greater audit risk than temporary differences of the same size.

Schedule M-3's introduction of detailed reporting requirements for temporary and permanent differences is another significant improvement over Schedule M-1 as well as an important enhancement to overall transparency.

C. Aggregate Schedule M-3 Data for 2007

 


1. Changes in aggregate Schedule M-3 data between 2007 and 2006: Table 1A. In Table 1A we summarize 2006 and 2007 Schedule M-3 data and other tax data for corporations filing the Form 1120 for tax years ending July 2006 through June 2007 (SOI 2006 file) and July 2007 through June 2008 (SOI 2007 file), reporting end-of-year total assets of $10 million or more on the Form 1120 Schedule L balance sheet, and meeting specified minimum data and reconciliation tests.14 In tables 1B and 1C we present detailed 2007 Form 1120 Schedule M-3 Part II and Part III data. Tables 1A, 1B, and 1C present Schedule M-3 data in the format of an aggregate Schedule M-3, following the rows and columns of that reconciliation form.

 

Note that on Schedule M-3, a negative total pretax difference adjustment occurs if tax income is below book income.15

In tables 1A, 1B, and 1C, and in Tables 2 through 5, the sign of Schedule M-3 Part III expense/deduction data has been changed to agree with the effect of those expense/deduction items on net income reported in Part II -- in particular, the effect on Part II line 30. If an expense/deduction item reduces net income, it is shown as a negative amount.16

Table 1A shows that consolidated worldwide financial income reported on Schedule M-3 Part I, line 4, for 42,395 corporations for 2007 is $804,393 million, down from $1,008,973 million in 2006 for 40,713 corporations, a decrease of $204,580 million.17

Net foreign non-includable entity income of $487,686 million removed on Part I, line 5 is up from the $302,431 million removed in 2006, an increase of $185,255 million removed. Approximately 12 percent of the Form 1120 Schedule M-3 filers in 2007 reported an adjustment on Part I, line 5. Those corporations reported approximately 72 percent of the assets reported on Form 1120 returns with Schedule M-3 -- that is, the corporations with those adjustments tended to be larger corporations in terms of assets.

Net U.S. non-includable entity income removed on Part I, line 6 was $111,934 million, down from $127,762 million, a decrease of $15,828 million removed. Net income added for other includable entities (included for U.S. tax income but not reported for financial accounting income) is $11,550 million, up from $9,629 million in 2006, an increase of $1,921 million added.

After all adjustments reported in Schedule M-3, Part I, lines 4 through 10, net income-per-income statement of includable corporations (book income) is $573,171 million, down from $856,450 million in 2006. That represents a decrease of $283,279 million in book income compared with a decrease of $204,580 million in worldwide consolidated financial income. The smaller decrease in worldwide consolidated income reflects the increase in foreign entity income included in consolidated worldwide income but not included in book income.

To determine 2007 and 2006 pretax book income, we add back federal income tax expense. Pretax book income is $845,410 million, down from $1,172,369 million in 2006, a decrease of $326,959 million compared with the $283,279 million decrease in book income. The larger decrease in pretax book income is because the federal income tax expense added back fell to $272,231 million from $315,916 million in 2006, a decrease of $43,685 million in the expense added back.

The total temporary and permanent difference adjustment added to book income to determine tax net income on Part II, lines 1 through 5, for income from foreign corporations is $104,893 million compared with $80,161 million in 2006, an increase of $24,732 million. Approximately 8 percent of the Form 1120 Schedule M-3 filers in 2007 reported an adjustment on Part II, lines 1 through 5. Those corporations reported approximately 71 percent of the assets reported on Form 1120 returns with Schedule M-3 -- that is, the corporations with those adjustments tended to be larger corporations in terms of assets.

The total temporary and permanent difference adjustment added to book income to determine tax net income on Part II, lines 9 through 11, for income from U.S. and foreign partnerships and other passthroughs is $37,348 million compared with $50,319 million in 2006, a decrease of $12,971 million.

The total temporary and permanent difference adjustment added to book income to determine tax net income on Part II, line 12 for reportable transactions is negative $21,374 million compared with negative $29,528 million in 2006, a decrease of $8,154 million in the negative adjustment.

The total temporary and permanent difference adjustment added to book income to determine tax net income on Part II, line 25 for "other with difference" income and loss items is negative $49,662 million compared with negative $145,496 million in 2006, a decrease of $95,834 million in the negative adjustment.

The total temporary and permanent difference adjustment added to book income to determine tax net income on Part III, lines 9 and 10, for stock options and other equity compensation is negative $51,830 million compared with negative $44,588 million in 2006, an increase of $7,242 million in the negative adjustment.

The total temporary and permanent difference adjustment added to book income to determine tax net income on Part III, line 35 for "other with difference" expense/deduction items is negative $12,923 million compared with negative $81,935 million in 2006, a decrease of $69,012 million in the negative adjustment.

The total temporary and permanent pretax difference adjustment (after reversing federal income tax expense) added to pretax book income of $845,410 million to determine tax net income on Part II, line 30 of $984,630 million is positive $139,220 million compared with negative $72,034 million in 2006, a decrease of $211,254 million in the negative adjustment.

On the SOI corporate file for 2007, SOI reports tax net income on Form 1120, page 1, line 28 of $918,438 million for 2007 for the corporations in our Form 1120 Schedule M-3 study meeting our minimum data and reconciliation requirements. The difference with the $984,630 million reported by the corporations on Schedule M-3, Part II, line 30, column (d) results from the SOI's elimination of intercompany dividends (ICD) of $88,353 million and other SOI adjustments adding $22,161 million.18

2. Tax net income and ICD. Form 1120 Schedule M-3, Part II, line 30, column (d) must equal Form 1120, page 1, line 28 when prepared by the corporate taxpayer. Some taxpayers improperly include ICD in tax net income on Form 1120, page 1, line 28, the reconciliation target for Schedule M-3.19 The taxpayer then removes the same ICD amount as a 100 percent dividends received deduction on line 29b so that it does not increase final income subject to tax on line 30. If the taxpayer includes ICD on Form 1120, page 1, line 28, it must also be included on Schedule M-3, Part II, line 30, column (d).

Any accounting adjustment that makes an increase to tax net income on Part II, line 30, column (d) that is not balanced by a similar increase to book income on Part II, line 30, column (a) will decrease the reported negative difference between book income and tax income on Schedule M-3 if book income is higher than tax income before the adjustment. It will increase the reported positive difference if book income is lower than tax income before the adjustment.20 The reduction in that reported negative difference, or the increase in the reported positive difference, may be a motivation for improperly including ICD in tax net income when it is not included in book income.21

In general, ICD should be eliminated in determining tax net income. SOI removes all ICD amounts that it identifies in tax net income in the SOI corporate file.22 If the taxpayer includes ICD in tax net income on Schedule M-3, Part II, line 30, column (d) and on Form 1120, page 1, line 28, the tax net income reported on Schedule M-3, line 30, column (d) will differ (be larger than) tax net income on Form 1120, page 1, line 28 in the SOI corporate file by the amount of the ICD removed by SOI from line 28.23

SOI has included information on the ICD adjustment on the 1999-2003 files and the 2005, 2006, and 2007 files as the variable DIV_AFFIL_ADJ. The ICD information was not included for the Schedule M-3 population on the 2004 file. We estimate the ICD adjustment for 2004 as the (unedited) Schedule M-3, Part II, line 30, column (d) amount minus the (edited) Form 1120, page 1, line 28 (if it is a positive difference) for corporations filing a consolidated return.

3. Aggregate 2007 Schedule M-3 Part II and III data detail: Tables 1B and 1C. In tables 1B and 1C we present detailed 2007 Form 1120 Schedule M-3 Part II and Part III data in the format of an aggregate Schedule M-3 following the rows and columns of that reconciliation form.

Note that on Schedule M-3, a negative total pretax difference adjustment occurs if tax income is below book income.24

In Table 1C, the sign of Schedule M-3 Part III expense/deduction data has been changed to agree with the effect of those expense/deduction items on net income reported in Part II -- in particular, the effect on Part II, line 30. If an expense/deduction item reduces net income, it is shown as a negative amount.25

In Table 1B, Schedule M-3, Part II, lines 1 through 5 report various adjustments to book income related to income from foreign corporations needed to determine tax income. Book income of $77,950 million is increased $104,893 million (approximately 135 percent) to tax income of $182,815 million. The total temporary difference adjustment is positive $8,934 million, and the total permanent difference adjustment is positive $95,960 million. Subpart F requires immediate recognition of specified income of controlled foreign corporations. The subpart F temporary difference adjustment is positive $11,559 million, and the total permanent difference adjustment is positive $51,042 million. Approximately 8 percent of the Form 1120 Schedule M-3 returns in 2007 reported an adjustment on Part II, lines 1 through 5. Those corporations reported approximately 71 percent of the assets reported on Form 1120 returns with Schedule M-3 -- that is, the corporations with those adjustments tended to be larger corporations in terms of assets.

In Table 1B, Schedule M-3, Part II, lines 9 through 11 report various adjustments to book income related to income from U.S. and foreign partnerships and passthroughs needed to determine tax income. Book income of $98,041 million is increased $37,348 million (approximately 38 percent) to tax income of $135,415 million. The total temporary difference adjustment is positive $17,460 million, and the total permanent difference adjustment is positive $19,888 million.

In Table 1B, Schedule M-3, Part II, line 12 reports the amount of adjustments to book income related to reportable transactions needed to determine tax income. Book income of negative $4,819 million is increased negative $21,374 million (approximately 444 percent) to tax income of negative $26,194 million. The total temporary difference adjustment is negative $10,623 million, and the total permanent difference adjustment is negative $10,751 million.

In Table 1B, Schedule M-3, Part II, line 25 reports the amount of adjustments to book income related to "other with difference" income and loss items needed to determine tax income. Book income of positive $17,251,641 million is decreased negative $49,662 million (less than 1 percent) to tax income of negative $17,201,984 million. The total temporary difference adjustment is negative $33,129 million, and the total permanent difference adjustment is negative $16,532 million.

In Table 1B, following Part II, line 30, reporting total book income and tax income, federal income tax expense of $272,231 million is reversed. The reversal generates total pretax income of $845,410 million, a pretax temporary difference adjustment of positive $53,475 million, and a pretax permanent difference adjustment of $85,745 million, for a total pretax difference adjustment of positive $139,220 million (approximately 16 percent of pretax book) and tax income of $984,630 million.

In Table 1C, Schedule M-3, Part III, lines 9 and 10 report various adjustments to book expense related to stock options and equity compensation needed to determine the tax deduction. Book expense of negative $64,973 million is increased negative $51,830 million (approximately 80 percent) to a tax deduction of negative $116,803 million. The total temporary difference adjustment is positive $8,770 million, and the total permanent difference adjustment is negative $60,600 million.

In Table 1C, Schedule M-3, Part III, line 35 reports the amount of adjustments to book expense related to "other with difference" expense/deduction items needed to determine the tax deduction. Book expense of negative $1,913,034 million is increased negative $12,923 million (approximately 1 percent) to the tax deduction of negative $1,926,125 million. The total temporary difference adjustment is negative $26,075 million, and the total permanent difference adjustment is positive $13,152 million.

4. Distribution of aggregate 2007 Schedule M-3 data for 2007.

a. Distribution by asset size and financial statement type: Table 2. Table 2 reports aggregate 2007 Schedule M-3 data and other tax return data distributed by asset size and financial statement type (SEC 10K/Public, Audited not SEC, and Unaudited or Books and Records).26 There are 5,418 SEC 10K/Public corporations among the 42,395 corporations in 2007 filing Form 1120 Schedule M-3 and meeting our minimum data and reconciliation requirements.27 The 5,418 returns that we classify as SEC 10K/Public report 75 percent of the assets reported by the 42,395 corporations. The 42,395 include 247 corporations reporting total assets of $20 billion or more each. Those 247 report 72 percent of the assets of the 42,395 corporations. The 247 include 180 corporations that are SEC 10K/Public and report $20 billion or more each in assets. Those 180 large public corporations report 61 percent of the assets of the 42,395.

The 180 SEC 10K/Public corporations reporting assets of $20 billion or more report 42 percent of the tax after credits of the 42,395 -- 69 percent of the foreign tax credit, 54 percent of the tax net income, and 58 percent of the consolidated worldwide financial accounting income. The 180 large public corporations report 71 percent of the net foreign entity non-includable income removed on Schedule M-3 Part I, line 5 and 65 percent of the net U.S. entity non-includable income removed on Part I, line 6.

The 180 SEC 10K/Public corporations reporting assets of $20 billion or more report 30 percent of the other includable entity income included on Part I, line 7. Other includable income on Part I, line 7 includes income from entities not included for some reason in the consolidated worldwide financial accounting income reported to shareholders, entities involved in off-balance-sheet transactions, special purpose entities or investment vehicles, variable interest entities, and disregarded entities. Interestingly, 62 percent of the income included on Part I, line 7 is reported by 29 private corporations reporting assets of $20 billion or more with audited non-SEC financial statements.

The 180 large public corporations report 54 percent of total book income after all Schedule M-3, Part I adjustments and 49 percent of pretax book income. Pretax book income is book income with federal income tax expense reversed for comparability with tax income. The 180 large public corporations report 54 percent of the pretax temporary difference, 111 percent of the pretax permanent difference, and 55 percent of the tax income.28

The 180 large public corporations report 62 percent of the total temporary and permanent book-tax differences reported on Part II, lines 1 through 5 related to income from foreign corporations. The 180 report 76 percent of the total temporary and permanent book-tax differences on Part II, lines 9 through 11 related to foreign and U.S. partnerships and passthroughs; 74 percent of the total differences for Part II, line 12 reportable transactions; 12 percent of the total differences on Part II, line 25 "other with difference" income/loss; 43 percent of the total differences on Part III, lines 9 and 10 related to stock options and equity compensation; and 172 percent of the total difference on Part III, line 35 "other with difference" expense/deduction.

The 29 private corporations reporting assets of $20 billion or more with audited non-SEC financial statements report 26 percent of the total temporary and permanent book-tax difference reported on Part II, line 25 "other with differences" income/loss.

b. Distribution by asset size and return type: Table 3. Table 3 reports aggregate 2007 Schedule M-3 data and other tax return data distributed by asset size and tax return type. There are three Form 1120 corporate tax return types for our Schedule M-3 2007 study: consolidate (without insurance company subsidiaries), mixed group (consolidated with insurance company subsidiaries), and unconsolidated. There are 20,735 consolidate corporations, 444 mixed group corporations, and 21,216 unconsolidated corporations among the 42,395 corporations filing Form 1120 Schedule M-3 in 2007 and meeting our minimum data and reconciliation requirements.29 The 20,735 consolidated corporations report 41 percent of the assets reported by the 42,395. The 444 mixed group corporations report 52 percent of the assets reported by the 42,395.

Understanding the role of the 444 mixed group corporations is extraordinarily important to an understanding of the evolving U.S. and multinational corporate landscape. Those corporations have a non-insurance parent, usually with a non-insurance principal business, but are distinguished by augmenting their corporate structure with one or more captive insurance company subsidiaries.

The 42,395 corporations meeting our data and reconciliation requirements include 247 corporations reporting total assets of $20 billion or more each. Those 247 report 72 percent of the assets of the 42,395 corporations. The 247 include 153 corporations that are consolidated, 89 that are mixed group, and five that are unconsolidated. The 153 large consolidated corporations report 19 percent of the assets of the 42,395. The 89 large mixed group corporations report 49 percent of the assets of the 42,395.

The 153 consolidated corporations and 89 mixed group corporations reporting assets of $20 billion or more report, respectively, 21 and 25 percent of the after-credits tax of the 42,395 corporations, 28 and 45 percent of the FTC, 24 and 32 percent of the tax net income, and 30 and 33 percent of the consolidated worldwide financial accounting income. The 153 large consolidated corporations and 89 large mixed group corporations report, respectively, 42 and 30 percent of the net foreign entity non-includable income removed on Schedule M-3, Part I, line 5, and 16 and 53 percent of the net U.S. entity non-includable income removed on Part I, line 6.

The 153 consolidated and 89 mixed group corporations reporting assets of $20 billion or more report, respectively, 16 and 78 percent of the other includable entity income included on Part I, line 7.

The 153 large consolidated and 89 large mixed group corporations report, respectively, 34 and 31 percent of total book income after all Schedule M-3, Part I, adjustments, and 31 and 28 percent of pretax book income. The 153 large consolidated and 89 large mixed group corporations report, respectively, negative 19 and negative 7 percent of the pretax temporary difference, negative 19 and positive 99 percent of the pretax permanent difference, and 24 and 33 percent of the tax income.

The 153 large consolidated and 89 large mixed group corporations report, respectively, 14 and 49 percent of the total temporary and permanent book-tax differences reported on Part II, lines 1 through 5 related to income from foreign corporations. The 153 large consolidated and 89 large mixed group corporations report, respectively, negative 14 percent and positive 70 percent of the total temporary and permanent book-tax differences on Part II, lines 9-11 related to foreign and U.S. partnerships and passthroughs; 17 and 50 percent of the total differences for Part II, line 12 reportable transactions; negative 5 percent and positive 87 percent of the total differences on Part II, line 25, "other with differences" income/loss; 27 and 20 percent of the total differences on Part III, lines 9 and 10 related to stock options and equity compensation; and 90 and 164 percent of the total difference on Part III, line 35 "other with differences" expense/deduction.30

c. Distribution by industry and SEC 10K/Public or Not Public status: Table 4. Table 4 reports aggregate 2007 Schedule M-3 data and other tax return data distributed by selected major industry and sub-industry groupings and by SEC 10K/Public or Not Public status within each industry.31 Totals are presented for (1) manufacturing (rows a-h), (2) finance/holding (rows i-l), and (3) other (rows m-s). There are 9,303 manufacturing corporations, 11,233 finance/holding corporations, and 21,859 other corporations among the 42,395 corporations filing Form 1120 Schedule M-3 in 2007 and meeting our minimum data and reconciliation requirements.32 The 9,303 manufacturing corporations report 20 percent of the assets reported by the 42,395 filers. The 11,233 finance/holding corporations report 59 percent of the assets reported by the 42,395.

The 9,303 manufacturing corporations and 11,233 finance/holding corporations report, respectively, 33 and 22 percent of the tax after credits of the 42,395 corporations; 72 and 9 percent of the FTC; 45 and 16 percent of the tax net income; and 51 and 13 percent of the consolidated worldwide financial accounting income. The manufacturing and finance/holding corporations report, respectively, 78 and 7 percent of the net foreign entity non-includable income removed on Schedule M-3 Part I, line 5, and 36 and 41 percent of the net U.S. entity non-includable income removed on Part I, line 6.

The manufacturing and finance/holding corporations report, respectively, positive 95 and negative 1 percent of the other includable entity income included on Part I, line 7.

The manufacturing and finance/holding corporations report, respectively, 55 and 7 percent of total book income after all Schedule M-3 Part I adjustments, and 49 and 9 percent of pretax book income. They report, respectively, 42 and 118 percent of the pretax temporary difference, negative 19 and positive 55 percent of the pretax permanent difference, and 43 and 19 percent of the tax income.

The manufacturing and finance/holding corporations report, respectively, 51 and 34 percent of the total temporary and permanent book-tax differences reported on Part II, lines 1 through 5 related to income from foreign corporations. They report, respectively, 78 percent and 9 percent of the total temporary and permanent book-tax differences on Part II, lines 9 through 11 related to foreign and U.S. partnerships and passthroughs; 45 and 27 percent of the total differences for Part II, line 12 reportable transactions; positive 110 percent and negative 10 percent of the total differences on Part II, line 25 "other with differences" income/loss; 42 and 18 percent of the total differences on Part III, lines 9 and 10 related to stock options and equity compensation; and negative 55 and negative 116 percent of the total difference on Part III, line 35 "other with differences" expense/deduction.

d. Distribution by stock option and equity compensation status: Table 5. Table 5 reports aggregate 2007 Schedule M-3 data and other tax return data distributed, first, by the rank of the corporation in reporting stock option negative pretax permanent differences (in terms of the effect on tax net income) on Part III, line 9, column (c).33

Note that on Schedule M-3, a negative total pretax difference adjustment occurs if tax income is below book income.34

In tables 1A and 1C, and in tables 2 through 5, the sign of Schedule M-3, Part III expense/deduction data has been changed to agree with the effect of those expense/deduction items on net income reported in Part II, in particular, the effect on Part II, line 30. If an expense/deduction item reduces net income, it is shown as a negative amount.35

A negative pretax permanent difference (under the sign convention for this report) for stock options would occur if a stock option exercise resulted in a claimed tax deduction by the corporation without having been expensed currently or previously for financial accounting by the corporation. In 2005 financial accounting standards required expensing of stock options at the time of grant.36 The 42,395 corporations in 2007 filing Form 1120 Schedule M-3 and meeting our minimum data and reconciliation requirements report (see Part III, lines 9 and 10 in Table 1C) aggregate stock option and equity compensation book expense of negative $64,973 million and tax deductions of negative $116,809 million.37 The total temporary and permanent difference of negative $51,830 million is comprised of a positive $8,770 million temporary difference and a negative $60,600 million permanent difference.

The top 250 corporations in terms of negative pretax permanent difference for stock options in 2007 report 72 percent of the stock option and equity compensation total temporary and permanent differences reported on Part III, lines 9 and 10, by the 42,395 corporations meeting our minimum data and reconciliation requirements. Those 250 corporations report 45 percent of the total assets, 36 percent of the total tax after credits, 63 percent of the total FTC, 45 percent of the net tax income, and 54 percent of consolidated worldwide income. They report 63 percent of the net foreign entity non-includable income removed on Schedule M-3 Part I, line 5, and 52 percent of the net U.S. entity non-includable income removed on Part I, line 6. They also report 70 percent of the other includable entity income included on Part I, line 7.

The top 250 corporations in terms of negative pretax permanent difference for stock options in 2007 report 56 percent of total book income after all Schedule M-3, Part I adjustments and 50 percent of pretax book income. They report 13 percent of the pretax temporary difference, 27 percent of the pretax permanent difference, and 46 percent of the tax income.

The top 250 corporations in terms of negative pretax permanent difference for stock options in 2007 report 53 percent of the total temporary and permanent book-tax differences reported on Part II, lines 1 through 5 related to income from foreign corporations. They report, respectively, 30 percent of the total temporary and permanent book-tax differences on Part II, lines 9 through 11 related to foreign and U.S. partnerships and passthroughs; 50 percent of the total differences for Part II, line 12 reportable transactions; 20 percent of the total differences on Part II, line 25 "other with differences" income/loss; and 51 percent of the total difference on Part III, line 35 "other with differences" expense/deduction.

Table 5 also reports aggregate 2007 Schedule M-3 data and other tax return data distributed by the amount and sign of the amounts reported on Part III, lines 9 and 10 as permanent differences and as tax deductions for stock options and equity compensation.

e. Reconciliation of 2007 Schedule M-3 first-look data with the SOI file: Table 6. Distribution Table 6 for 2007 identifies the population of tax returns on the 2007 SOI final corporate file potentially subject to the requirement to include the 2007 Form 1120 Schedule M-3. The first requirement is that the corporation file a Form 1120 and report assets of $10 million or more on Form 1120 Schedule L.38 The second requirement is that the tax year ends during the period July 2007 through June 2008. The 2007 SOI final file contains records statistically representing 45,550 tax returns for corporations filing Form 1120 with total assets of $10 million or more.39 These 45,550 tax returns include 950 returns either with no Schedule M-3 data or with a tax year ending before July 2007. SOI sometimes includes a placeholder record if the desired tax return is unavailable.40 The 45,550 returns also include 2,205 returns that have Schedule M-3 data and a year-end of July 2007 through July 2008 but fail to pass specified minimum data reconciliation tests. Removing the 950 returns with no Schedule M-3 data or an incorrect tax year and removing the 2,205 returns that have data reconciliation problems leaves the 42,395 minimally reconcilable returns that are used in tables 1A, 1B, 1C, and 2 through 5. The 42,395 returns are also used in Table 7 as returns with 2007 Schedule M-3 data.41

The 2,205 returns we eliminate for data reconciliation problems failed one or more of the following tests: Part II, line 30 contains no nonzero amount; Part II, line 30, columns (a), (b), and (c) do not reconcile with column (d) within 1 percent of the maximum nonzero absolute value amount on Part II, line 30; Part II, line 30, column (a) does not reconcile with Part I, line 11 within 1 percent of the maximum nonzero absolute value amount on Part II, line 3042; Part II, line 27 contains no nonzero amount; Part III, line 36 contains no nonzero amount; Part II, line 27 and Part III, line 36 do not reconcile after the required sign change within 1 percent of the maximum nonzero absolute value amount on Part II, line 30.

Part III is designed to report expenses and deductions as positive amounts. The column sums on Part III, line 36 are then carried over to Part II, line 28 with a sign change and added on Part II in determining Part II, line 30 column amounts. Some returns that initially fail our tests on Part II, line 27 and Part III, line 36 are corrected by us if we determined that the taxpayer reported expenses and deductions on Part III as negative amounts and carried those amounts to Part II, line 27 without a sign change where those amounts could appropriately be added. Some of the returns are very large in terms of total assets. For aggregation purposes, we changed the sign of amounts on Part III of those returns so that expenses and deductions were reported as positive amounts before aggregation. This was done before we changed the sign of all Part III expense and deduction data. For some of the corrected returns, we determined that the taxpayer reported expenses and deductions on Part III as positive amounts and carried those amounts to Part II, line 27 without a sign change where the taxpayer then subtracted the Part II, line 27 column amounts to determine Part II, line 30. For aggregation purposes, we changed the sign of amounts on Part II, line 27 so that those amounts could be added.43

f. Table 7: Combined schedules M-1 and M-3 data 1994-2007. Table 7 presents Schedule M-1 data, Schedule M-3 data, and other tax return data for all 1994-2003 Form 1120 returns filing a complete Schedule M-1, all 2004-2007 Form 1120 returns filing a complete Schedule M-1 and failing to file a Schedule M-3 meeting the data and reconciliation requirements for this report, and all 2004-2007 Form 1120 returns filing a Schedule M-3 meeting the data and reconciliation requirements for this report. Table 7 is the source for the data used for figures 1, 2, and 3.


III. 2006/2007 Supporting Documentation


A. Identifying Supporting Documentation

Two of the authors (Legel and Reum) reviewed Schedule M-3 reporting documentation for all relevant SOI tax returns reporting either positive or negative amounts of more than $500 million in absolute value on Part I, line 10a, b, and c other adjustments; Part II, line 25 other income (loss) items with differences; and Part III, line 35 other expense/deduction items with differences. In aggregate, those tax returns comprise more than a million pages.

The search used Structured Query Language queries of the SOI attachments file and verification of large amounts for the "other" lines on parts I, II, and III using the secure IRS Employee User Portal. Those attachments were sometimes filed with the consolidated Schedule M-3 and otherwise with the subsidiary companies' Schedules M-3. The review included finding the supporting documentation for the "other" line, finding the specific descriptions for amounts greater than the absolute value of $500 million ($1 billion for Part I, line 10) in the "other" lines attachments, or 40 percent of the total other differences amount reported on Part II, line 25, columns (b) and (c) and Part III, line 35, columns (b) and (c). Those large differences were categorized by employee identification number, return type, industry code, total assets, corporation name, the positive or negative temporary or permanent difference amounts (both as amounts and as percentages of the corresponding positive or negative aggregate temporary or permanent difference for Part II, line 25 or Part III, line 35), and a description itemizing the type of income (loss) or expense/deduction. The positive or negative temporary or permanent amounts selected were collated from largest to smallest (absolute value). We found that corporations might have separate difference amounts in the attachments larger than the total difference amount for the "other" total line because of large offsetting amounts within the attachments. We compare the individual company itemized differences that are greater than the absolute value of $100 million with their respective total difference amounts reported on Part II, line 25 and Part III, line 35. Some companies did not provide attachment data. In our analysis of the "other" lines on the 2006/2007 Schedule M-3, we excluded amounts found in the insurance subsidiary companies.

As in the past, several large items reported on the "other" lines should in fact have been reported on more specific Schedule M-3 lines. A couple of examples are "intercompany dividends" and "R&D expenses" (a new expense item that will be reported as "Research & Development Costs" on Part III, line 35 in 2010). The authors suggest that future instructions for the Schedule M-3 "other" lines note some of those reporting errors as examples of inappropriate categorization. Finally, there are recurring large amounts that are correctly reported on "other" lines but are labeled as "miscellaneous income" and "other income" or as "miscellaneous expense" and "other expense" that could usefully be reported on current or new Schedule M-3 lines if a better description is given.

B. Large Differences on Part I, Line 10

 


The authors identified items in 2006 in the supporting attachments to Part I, line 10a, b, and c with absolute values of $500 million or more reported for Part I, line 10a, b, and c, for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report.44 Line 10a accounts for approximately 96 percent of the aggregate positive differences of $89 billion and 99 percent of the aggregate negative differences of negative $73 billion. Line 10b yields 84 percent of aggregate positive differences of $5 billion and 93 percent of aggregate negative differences of approximately negative $7 billion. Lastly, line 10c yields 81 percent of an aggregate positive difference of $35 billion and 63 percent of aggregate negative differences of negative $10 billion.

 

In 2007 the authors reviewed supporting attachments to Part I, line 10a with absolute values of $500 million or more. Those returns account for approximately 93 percent of the aggregate positive differences of $66 billion and 94 percent of the aggregate negative differences of negative $19 billion reported for Part I, line 10a for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. Given the above thresholds, line 10b yields 97 percent of aggregate positive differences of $21 billion and 76 percent of aggregate negative differences of approximately negative $8 billion. Lastly, Part I, line 10c yields 97 percent of an aggregate positive difference of $42 billion and 76 percent of aggregate negative differences of negative $10 billion.

In 2006 and 2007 Part I, line 10a is generally used appropriately to report the addition of intercompany dividends if required by statutory accounting for insurance subsidiaries (STAT), but it is found to contain large amounts from consolidated corporations that do not have insurance subsidiaries. For line 10b, GAAP to STAT adjustments and intercompany dividends were most prevalent. Intercompany dividends and adjustments for consolidated companies without insurance subsidiaries are dominantly shown on line 10c. The instruction for Part I, line 10 items clearly states that normally, and except when statutory accounting for insurance subsidiaries applies, intercompany dividends should be eliminated and not reported as part of Part I, line 4a consolidated worldwide income and not reported as part of Part I, line 11 book income.

Many of the tax return attachment amounts for Part I, line 10a, b, and c reported large (more than $500 million absolute value) amounts but did not adequately describe the items. In 2006 in Part I, line 10a, 7 percent of positive amounts had no attachments and all had attachments for the negative items. In Part I, line 10b, 100 percent of positive amounts had no attachments and 50 percent of the negative amounts had no attachment information. In Part I, line 10c, 82 percent of positive amounts had no attachments and 89 percent of the negative amounts had no attachments.

A similar pattern of reporting occurs in 2007. Part I, line 10a shows 51 percent of positive amounts had no attachments and 16 percent for the negative items. In Part I, line 10b, 15 percent of positive amounts had no attachments and 0 percent had attachments for the negative items. Finally, in Part I, line 10c, 63 percent of positive amounts had no attachments and 71 percent of the negative amounts had no attachments, although they were required. The proportion of tax returns with Part I, line 10 attachments improved in 2006/2007 compared with 2004/2005. All returns, however, are required to submit attachment amounts and descriptions for lines 10a, b, and c.

C. Large Differences on Part II, Line 25

 


In 2006 returns that reported Part II, line 25 that had more than $500 million in negative permanent income differences (NPID) yielded 15 returns that comprised $5.9 trillion in total assets (33 percent of the total assets that reported NPID). Moreover, those returns contributed 61 percent of the total NPID of negative $46 billion that is reported on Part II, line 25 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 77 percent of the total difference for the line. Seven companies had "miscellaneous income/other income" or "intercompany dividends/income" that could have been placed on existing lines. In 2007 returns that reported Part II, line 25 that had more than $500 million in NPID yielded 17 returns that comprised $1.5 trillion in total assets (8 percent of the total assets that reported NPID). Moreover, those returns contributed 56 percent of the total NPID of negative $42 billion that is reported on Part II, line 25 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 96 percent of the total difference for the line. Seven companies had "miscellaneous/income" or "intercompany dividends/income" that could have been placed on existing lines.

 

In 2006 returns that reported Part II, line 25 that had more than $500 million in positive permanent income differences (PPID) yielded 11 returns that comprised $727 billion in total assets (5 percent of the total assets that reported PPID). Moreover, those returns contributed 53 percent of the total PPID of $27 billion that is reported on Part II, line 25 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 96 percent of the total difference for the line. At least half the companies had "miscellaneous" or "intercompany income." In 2007 returns that reported Part II, line 25 that had more than $500 million in PPID yielded 6 returns that comprised $240 billion in total assets (1.4 percent of the total assets that reported PPID). Moreover, those returns contributed 52 percent of the total PPID of $26 billion that is reported on Part II, line 25 for all corporations with reconcilable Schedules M-33 meeting the data requirements for this report. The absolute amounts on those returns are 132 percent of the total difference for the line. At least half the companies had "miscellaneous income."

In 2006 returns that reported Part II, line 25 that had more than $500 million in negative temporary income differences (NTID) yielded 27 returns that comprised $8.4 trillion in total assets (43 percent of the total assets that reported NTID). Moreover, those returns contributed 84 percent of the total NTID of negative $174 billion that is reported on Part II, line 25 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 100 percent of the total difference for the line. Nine companies had "miscellaneous" or "other" income. In 2007 returns that reported Part II, line 25 that had more than $500 million in NTID yielded 26 returns that comprised $5.6 trillion in total assets (33 percent of the total assets that reported NTID). Moreover, those returns contributed 71 percent of the total NTID of negative $92 billion that is reported on Part II, line 25 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 141 percent of the total difference for the line. Six companies had "miscellaneous income," and a few had no descriptive attachments.

In 2006 returns that reported Part II, line 25 that had more than $500 million in positive temporary income differences (PTID) yielded 13 returns that comprised $3 trillion in total assets (15 percent of the total assets that reported PTID). Moreover, those returns contributed 37 percent of the total PTID of $48 billion that is reported on Part II, line 25 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 95 percent of the total difference for the line. Five companies had "miscellaneous income" and "gross sales" as large significant amounts. In 2007 returns that reported Part II, line 25 that had more than $500 million in PTID yielded 21 returns that comprised $11 trillion in total assets (43 percent of the total assets that reported PTID). Moreover, those returns contributed 42 percent of the total PTID of $59 billion that is reported on Part II, line 25 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 101 percent of the total difference for the line. Nine companies had "miscellaneous or other income" and several others listed "gross sales" as large significant amounts.

D. Large Differences on Part III, Line 35

 


In 2006 returns that reported Part II, line 35 that had more than $500 million in positive permanent expense differences (PPED) yielded 9 returns that comprised $961 billion in total assets (5 percent of the total assets that reported PPED). Moreover, those returns contributed 35 percent of the total PPED of $35 billion that is reported on Part II, line 35 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 86 percent of the total difference for the line. Five companies had "miscellaneous expense." In 2007 returns that reported Part II, line 35 that had more than $600 million in PPED yielded nine returns that comprised $2.4 trillion in total assets (12 percent of the total assets that reported PPED). Moreover, those returns contributed 41 percent of the total PPED of $29 billion that is reported on Part II, line 35 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 89 percent of the total difference for the line. Five companies had "miscellaneous expense" or "intercompany expense."

 

In 2006 returns that reported Part II, line 35 that had more than $500 million in negative permanent expense differences (NPED) yielded 10 returns that comprised $183 billion in total assets (0.8 percent of the total assets that reported NPED). Moreover, those returns contributed 42 percent of the total NPED of negative $29 billion that is reported on Part II, line 35 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 85 percent of the total difference for the line. Five companies had "R&D expense" or "other expenses." In 2007 returns that reported Part II, line 35 that had more than $500 million in NPED yielded 18 returns that comprised $1.8 trillion in total assets (7 percent of the total assets that reported NPED). Moreover, those returns contributed 57 percent of the total NPED of negative $42 billion that is reported on Part II, line 35 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 99 percent of the total difference for the line. Five companies had "miscellaneous/other expense" or "R&D expense."

In 2006 returns that reported Part II, line 35 that had more than $500 million in negative temporary expense differences (NTED) yielded 10 returns that comprised $553 billion in total assets (4 percent of the total assets that reported NTED). Moreover, those returns contributed 23 percent of the total NTED of negative $55 billion that is reported on Part II, line 35 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 56 percent of the total difference for the line. Five companies had "miscellaneous expense" or "R&D expense." In 2007 returns that reported Part II, line 35 that had more than $500 million in NTED yielded 18 returns that comprised $9.2 trillion in total assets (39 percent of the total assets that reported NTED). Moreover, those returns contributed 36 percent of the total NTED of negative $78 billion that is reported on Part II, line 35 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 102 percent of the total difference for the line. Seven companies had "miscellaneous income."

In 2006 returns that reported Part II, line 35 that had more than $500 million in positive temporary expense differences (PTED) yielded 44 returns that comprised $13.4 trillion in total assets (45 percent of the total assets that reported PTED). Moreover, those returns contributed 58 percent of the total PTED of $132 billion that is reported on Part II, line 35 on Table F1.1 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 69 percent for the top 13 returns of the total difference for the line. Many companies had "miscellaneous expense." In 2007 returns that reported Part II, line 35 that had more than $700 million in PTED yielded 26 returns that comprised $1.9 trillion in total assets (8 percent of the total assets that percent reported PTED). Moreover, those returns contributed 43 percent of the total PTED of $105 billion that is reported on Part II, line 35 for all corporations with reconcilable Schedules M-3 meeting the data requirements for this report. The absolute amounts on those returns are 97 percent of the total difference for the line. Five companies had "miscellaneous income" and 13 companies had "intangible drilling costs."

E. Suggested Changes to Documentation

 


Authors Legel and Reum suggest that the instructions for Schedule M-3 be clarified for mixed group corporations to report the Form 1120 Schedule M-3 income and expense items on the consolidated Form 1120 Schedule M-3 instead of the sub-consolidated Form 1120 Schedule M-3. Based on the authors' experience, searching for attached supporting documentation would be faster if the schedules were attached to the consolidated Schedule M-3, not to the subsidiary Schedules M-3 with the consolidated amount for the "separately stated and adequately disclosed" item shown followed by the allocation to appropriate subsidiaries.

 


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Lisowsky, Petro, and William B. Trautman, "Book-Tax Consolidation, Rates of Return, and Capital Structure," Tax Notes, Dec. 10, 2007, p. 1043, Doc 2007-25903 , 2007 TNT 238-32 2007 TNT 238-32: Special Reports.

McGill, Gary, and Edmund Outslay, "Did Enron Pay Taxes?: Using Accounting Information to Decipher Tax Status," Tax Notes, Aug. 19, 2002, p. 1125, Doc 2002-19158 , 2002 TNT 161-50 2002 TNT 161-50: Special Reports.

McGill, Gary, and Edmund Outslay, "Lost in Translation: Detecting Tax Shelter Activity in Financial Statements," Nat'l Tax J. 57 no. 3 (Sept. 2004): 739-756.

Mills, Lillian, "Book-Tax Differences and Internal Revenue Service Adjustments," J. of Acct. Res. 36 no. 2 (Autumn, 1998): 343-356.

Mills, Lillian, and George Plesko, "Bridging the Gap: A Proposal for More Informative Reconciling of Book and Tax Income," Nat'l Tax J. 56 no. 4 (Dec. 2003): 865-893.

Mills, Lillian, Kaye Newberry, and William Trautman, "Trends in Book-Tax Income and Balance Sheet Differences," Tax Notes, Aug. 19, 2002, p. 1109, Doc 2002-19155 , 2002 TNT 161-49 2002 TNT 161-49: Special Reports.

Office of Management and Budget, "Report on Statistical Disclosure Limitation Mythology" Working Paper 22 (rev. 2005).

Plesko, George A., "Reconciling Corporate Book and Tax Net Income, Tax Years 1996-1998," Statistics of Income Bulletin 21 no. 4 (Spring, 2002): 1-16.

Plesko, George A., "An Evaluation of Alternative Measures of Corporate Tax Rates," J. of Acct. and Econ. 35 (2003): 201-226.

Plesko, George A., "Corporate Tax Avoidance and the Properties of Corporate Earnings," Nat'l Tax J. 57 no. 3 (Sept. 2004): 729-737.

Plesko, George A., and Nina L. Shumofsky, "Reconciling Corporate Book and Tax Net Income, Tax Years 1995-2001," Data Release, Statistics of Income Bulletin 24 no. 4 (Spring 2005): 103-108.

Poterba, James, Nirupama Rao, and Jeri Seidman, "Deferred Tax Positions and Incentives for Corporate Behavior Around Corporate Tax Changes," Nat'l Tax J. 64 no. 1 (2011): 27-58.

Raedy, Jana, Jeri Seidman, and Douglas Shackelford, "Is There Information Content in the Tax Footnote?" University of North Carolina and University of Texas Working Paper, 2011.

Talisman, Jonathan, "Corporate Tax Shelters and the Corporate Tax Base," 4-6, in "Penalty and Interest Provisions, Corporate Tax Shelters," Testimony of Jonathan Talisman, Assistant Secretary (Tax Policy), Treasury Department, before the Senate Finance Committee, Washington, D.C., Mar. 8, 2000, Doc 2000-6994, 2000 TNT 47-63 2000 TNT 47-63: Treasury Testimony.

Treasury Department, "Evidence of Growth in Corporate Tax Shelters," in The Problem of Corporate Tax Shelters: Discussion, Analysis, and Legislative Proposals. Washington, D.C.: Government Printing Office, July 1999: 31-33.

Weiner, Joann M., "Closing the Other Tax Gap: The Book-Tax Income Gap," Tax Notes, May 28, 2007, p. 849, Doc 2007-11679 , 2007 TNT 104-46 2007 TNT 104-46: Special Reports.


Figure 1. Pretax Book Income and Tax Net Income:
U.S. Corporations Filing Form 1120
With Total Assets of $10 Million or More:
Combined Schedules M-1 and M-3 Data: 1994-2007



Figure 2. Book-Tax Difference =
Tax Net Income Minus Pretax Book Income:
U.S. Corporations Filing Form 1120
With Total Assets of $10 Million or More:
Combined Schedule M-1 and M-3 Data: 1994-2007



Figure 3. Book-Tax Difference =
Tax Net Income Minus Pretax Book Income as
Percentage of Pretax Book Income:
U.S. Corporations Filing Form 1120
With Total Assets of $10 Million or More:
Combined Schedules M-1 and M-3 Data: 1994-2007


      Table 1A. U.S. Corporations With Reconciled Form 1120 Schedule M-3:
                            Summary of 2007 vs. 2006
 ______________________________________________________________________________

                   Population Overview (Dollars in millions)
              Table amounts may not add to totals due to rounding.
 ______________________________________________________________________________

                                              Year 2007
 Part I:                ________________________________________________________
 Financial
 Information            Frequency   Percent     Assets     Percent     Income
 ______________________________________________________________________________

 Total Frequency/
 Assets                   42,395               47,344,964

 04 Worldwide
 consolidated
 net income (loss)        42,232      100      47,255,568    100        804,393

 05 (Income) Loss
 -- non-includable
 foreign entities          5,252       12      34,114,184     72       -487,686

 05a Net income from
 non-includable
 foreign entities          4,259       10      33,281,411     70       -725,941

 05b Net loss from
 non-includable
 foreign entities          3,410        8      29,633,931     63        238,255

 06 (Income) Loss
 -- non-includable
 U.S. entities             2,409        6      31,692,693     67       -111,934

 06a Net income from
 non-includable
 U.S. entities             1,773        4      30,064,442     64       -150,231

 06b Net loss from
 non-includable
 U.S. entities             1,248        3      26,062,055     55         38,297

 07 Income (loss)
 of other
 entities                    435        1      11,126,178     24         11,550

 07a Income (loss)
 of other disregarded
 entities                    113        0       5,232,356     11          3,958

 07b Income (loss)
 of other
 includable entities         341        1       6,699,015     14          7,592

 08 Adjustments to
 eliminations (for
 lines 5 through 7)        2,311        5      20,182,468     43        260,099

 ** Summary of
 lines 5 through 8         6,844       16      36,691,074     77       -327,972

 09 Adjustment to
 reconcile to
 tax year                    651        2       4,330,383      9          5,387

 10a Statutory
 intercompany dividend
 adjustment                  178        0       5,727,877     12         46,342

 10b Other
 statutory accounting
 adjustments                 124        0      12,759,298     27         12,912

 10c Other adjustments
 to reconcile to
 line 11                     995        2      18,160,984     38         31,509

 ** Summary of lines
 10a, 10b, 10c             1,183        3      24,665,681     52         90,764

 ** Subtotal              42,256      100      47,263,368    100        572,571

 ** Amount to
 reconcile                 4,142       10      26,372,337     56            599

 11 Net income per
 income statement
 of included
 corporations             42,387      100      47,342,858    100        573,171

 ** Amount to
 Reconcile                   325        1       2,829,957      6              8

 ** Net income per
 Part II Line 30
 Column A                 42,387      100      47,342,858    100        573,179

 ** Reverse Federal
 tax expense              33,065       78      46,510,074     98        272,231

 ** Pretax book
 Income                   42,385      100      47,342,635    100        845,410

 P2 PreTaxDif:
 Lines 01-05
 Foreign corporate
 income/loss               3,477        8      33,449,576     71        104,893

 P2 PreTaxDif:
 Lines 06-08
 U.S. corporate
 income/loss               9,652       23      39,704,516     84           -119

 P2 PreTaxDif:
 Lines 09-11
 Partnr/pass-thru
 inc/lo                   10,007       24      41,950,123     89         37,348

 P2 PreTaxDif:
 Line 12 Reportable
 transactions                250        1      22,982,241     49        -21,374

 P2 PreTaxDif:
 Line 13 Interest
 income                   32,737       77      46,741,628     99        -24,741

 P2 PreTaxDif:
 Line 15 Hedging
 transactions              1,104        3      28,900,236     61          2,463

 P2 PreTaxDif:
 Line 16
 Mark-to-market
 income/loss               1,274        3      28,042,376     59         -2,813

 P2 PreTaxDif:
 Line 17 Cost of
 goods sold               24,853       59      28,671,845     61         25,730

 P2 PreTaxDif:
 Line 18 Sale
 vs. lease                   262        1      12,297,427     26         26,396

 P2 PreTaxDif:
 Line 19 Section
 481(a) adjustments        2,692        6      23,010,516     49           -306

 P2 PreTaxDif:
 Lines 23a-24 asset
 disposition              26,333       62      45,309,019     96          3,345

 P2 PreTaxDif:
 Line 25 Other
 income/loss with
 differences              19,809       47      44,430,794     94        -49,662

 P2 PreTaxDif:
 Non-parent
 subgroups totals            455        1      23,504,297     50         10,144

 P2 PreTaxDif:
 The Rest, Part II         6,325       15      34,572,529     73          5,094

 P3 PreTaxDif:
 Lines 03-04 State
 plus local income
 tax exp                  28,765       68      43,822,764     93         -5,514

 P3 PreTaxDif:
 Lines 05-06
 Foreign income
 tax exp                   2,339        6      29,816,806     63         24,815

 P3 Pretax difference:
 Line 08 Interest
 expense                  31,266       74      46,330,097     98          8,297

 P3 Pretax difference:
 Lines 9-10 Stock
 options & equity comp     7,953       19      38,053,984     80        -51,830

 P3 Pretax difference:
 Lines 16-18
 Pension, profit
 share, etc.              20,904       49      44,224,997     93         -8,685

 P3 Pretax difference:
 Lines 23-25
 Acquisition/
 reorganization costs      1,170        3      16,552,860     35         -5,501

 P3 Pretax difference:
 Lines 26-31
 Depreciation,
 amortization, &
 impair                   38,806       92      46,270,843     98         49,107

 P3 Pretax difference:
 Lines 32 Bad debt        25,664       61      43,840,646     93         30,240

 P3 Pretax difference:
 Line 35 Other
 expenses/deductions
 with differences         33,258       78      46,231,388     98        -12,923

 P3 Pretax difference:
 The rest Part III        38,958       92      46,393,613     98         -6,727

 -- Pretax difference:
 summary of above         41,640       98      47,138,318    100        137,678

 -- Amount to reconcile
 P2 Lines 01-25
 to Line 26               25,192       59      43,737,986     92             99

 -- Amount to reconcile
 P2 Lines 26-28
 to Parent Subgroup       38,373       91      46,737,569     99          1,542

 -- Amount to reconcile
 P2 Subgroups to
 Line 30                   1,531        4      17,762,959     38           -147

 -- Amount to reconcile
 P3 Lines 01-35
 to Line 36               32,194       76      43,807,181     93             47

 -- Subtotal summary
 above & amounts to
 reconcile                41,702       98      47,151,287    100        139,220

 ** Pretax difference:
 all other                28,044       66      28,798,576     61              0

 ** Total pretax
 difference before
 federal tax expense      41,702       98      47,151,287    100        139,220

 ** Amount to
 reconcile                22,738       54      22,774,774     48             -1

 ** Net tax income
 per Part II Line 30
 Column D                 42,277      100      47,335,173    100        984,630

 ** SOI removed ICD          328        1      12,399,951     26        -88,353

 ** Other SOI
 adjustments                 812        2      15,623,561     33         22,161

 ** Tax net income
 reported by SOI          42,274      100      47,333,368    100        918,438

 ** Reverse negative
 tax net income           14,157       33      10,334,220     22        200,161

 ** Positive tax net
 income                   28,117       66      36,999,149     78      1,118,598

 ** Net operating
 loss deduction            8,198       19      26,629,377     56        -88,751

 ** Special
 deductions                6,979       16      37,154,657     78        -16,833

 ** Amount to
 reconcile                 5,653       13      26,051,615     55         10,568

 ** Taxable income        23,496       55      39,754,635     84      1,023,583

 Tax before credits       26,792       63      43,019,701     91        360,373

 Foreign tax credit        2,872        7      26,467,854     56        -78,183

 General business
 credit                    5,312       13      28,941,223     61        -13,509

 Other tax credits         4,572       11      27,239,446     58         -2,600

 Tax less credits         26,450       62      41,659,937     88        266,081
 ______________________________________________________________________________

                               [table continued]
 ______________________________________________________________________________

                                              Year 2006
 Part I:                ________________________________________________________
 Financial
 Information            Frequency   Percent     Assets     Percent     Income
 ______________________________________________________________________________

 Total Frequency/
 Assets                   40,713               44,266,617

 04 Worldwide
 consolidated
 net income (loss)        40,498       99      44,168,582    100      1,008,973

 05 (Income) Loss
 -- non-includable
 foreign entities          5,093       13      31,041,478     70       -302,431

 05a Net income from
 non-includable
 foreign entities          4,076       10      30,207,164     68       -565,414

 05b Net loss from
 non-includable
 foreign entities          3,321        8      27,532,991     62        262,983

 06 (Income) Loss
 -- non-includable
 U.S. entities             2,265        6      29,711,826     67       -127,762

 06a Net income from
 non-includable
 U.S. entities             1,680        4      27,946,594     63       -154,808

 06b Net loss from
 non-includable
 U.S. entities             1,149        3      24,105,703     54         27,047

 07 Income (loss)
 of other
 entities                    438        1      12,039,442     27          9,629

 07a Income (loss)
 of other disregarded
 entities

 07b Income (loss)
 of other
 includable entities

 08 Adjustments to
 eliminations (for
 lines 5 through 7)        2,198        5      16,171,561     37        223,392

 ** Summary of
 lines 5 through 8         6,589       16      33,557,544     76       -197,171

 09 Adjustment to
 reconcile to
 tax year                    638        2       4,146,463      9           -194

 10a Statutory
 intercompany dividend
 adjustment                  130        0       5,139,782     12         16,027

 10b Other
 statutory accounting
 adjustments                  82        0      13,513,425     31         -1,466

 10c Other adjustments
 to reconcile to
 line 11                   1,037        3      15,793,443     36         24,793

 ** Summary of lines
 10a, 10b, 10c             1,153        3      24,173,856     55         39,353

 ** Subtotal              40,532      100      44,188,809    100        850,960

 ** Amount to
 reconcile                 3,942       10      24,782,179     56          5,489

 11 Net income per
 income statement
 of included
 corporations             40,709      100      44,266,070    100        856,450

 ** Amount to
 Reconcile                   364        1       4,537,121     10              3

 ** Net income per
 Part II Line 30
 Column A                 40,709      100      44,266,070    100        856,452

 ** Reverse Federal
 tax expense              32,025       79      43,490,368     98        315,916

 ** Pretax book
 Income                   40,705      100      44,265,841    100      1,172,369

 P2 PreTaxDif:
 Lines 01-05
 Foreign corporate
 income/loss               3,283        8      31,330,052     71         80,161

 P2 PreTaxDif:
 Lines 06-08
 U.S. corporate
 income/loss               9,641       24      37,465,700     85        -79,667

 P2 PreTaxDif:
 Lines 09-11
 Partnr/pass-thru
 inc/lo                    9,462       23      39,246,724     89         50,319

 P2 PreTaxDif:
 Line 12 Reportable
 transactions                315        1      22,839,159     52        -29,528

 P2 PreTaxDif:
 Line 13 Interest
 income                   32,265       79      43,707,525     99        -38,834

 P2 PreTaxDif:
 Line 15 Hedging
 transactions              1,041        3      27,478,379     62            980

 P2 PreTaxDif:
 Line 16
 Mark-to-market
 income/loss               1,124        3      26,163,251     59         -3,856

 P2 PreTaxDif:
 Line 17 Cost of
 goods sold               22,522       55      24,885,936     56        105,160

 P2 PreTaxDif:
 Line 18 Sale
 vs. lease                   301        1      12,698,931     29         29,822

 P2 PreTaxDif:
 Line 19 Section
 481(a) adjustments        2,271        6      21,937,330     50         -3,920

 P2 PreTaxDif:
 Lines 23a-24 asset
 disposition              25,926       64      42,456,005     96         43,501

 P2 PreTaxDif:
 Line 25 Other
 income/loss with
 differences              19,682       48      41,570,006     94       -145,496

 P2 PreTaxDif:
 Non-parent
 subgroups totals            399        1      18,846,029     43          3,795

 P2 PreTaxDif:
 The Rest, Part II         6,155       15      31,942,038     72          8,270

 P3 PreTaxDif:
 Lines 03-04 State
 plus local income
 tax exp                  27,328       67      40,546,206     92         -3,749

 P3 PreTaxDif:
 Lines 05-06
 Foreign income
 tax exp                   2,134        5      29,039,292     66         28,991

 P3 Pretax difference:
 Line 08 Interest
 expense                  28,454       70      42,347,136     96          6,197

 P3 Pretax difference:
 Lines 9-10 Stock
 options & equity comp     7,229       18      36,150,922     82        -44,588

 P3 Pretax difference:
 Lines 16-18
 Pension, profit
 share, etc.              20,532       50      41,369,069     93          1,090

 P3 Pretax difference:
 Lines 23-25
 Acquisition/
 reorganization costs      1,140        3      16,628,008     38          2,203

 P3 Pretax difference:
 Lines 26-31
 Depreciation,
 amortization, &
 impair                   37,530       92      43,308,758     98        -10,386

 P3 Pretax difference:
 Lines 32 Bad debt        25,120       62      40,958,358     93          6,503

 P3 Pretax difference:
 Line 35 Other
 expenses/deductions
 with differences         32,282       79      43,334,579     98        -81,935

 P3 Pretax difference:
 The rest Part III        37,369       92      43,324,510     98         -1,125

 -- Pretax difference:
 summary of above         39,902       98      44,077,469    100        -76,082

 -- Amount to reconcile
 P2 Lines 01-25
 to Line 26               25,280       62      40,014,380     90           -779

 -- Amount to reconcile
 P2 Lines 26-28
 to Parent Subgroup       37,261       92      43,749,728     99        -46,428

 -- Amount to reconcile
 P2 Subgroups to
 Line 30                   6,170       15      19,298,665     44         46,807

 -- Amount to reconcile
 P3 Lines 01-35
 to Line 36               31,169       77      41,886,350     95          4,447

 -- Subtotal summary
 above & amounts to
 reconcile                40,009       98      44,087,737    100        -72,035

 ** Pretax difference:
 all other                27,101       67      32,965,202     74              0

 ** Total pretax
 difference before
 federal tax expense      40,006       98      44,087,702    100        -72,034

 ** Amount to
 reconcile                21,523       53      22,869,262     52              0

 ** Net tax income
 per Part II Line 30
 Column D                 40,607      100      44,245,711    100      1,100,335

 ** SOI removed ICD          251        1      13,652,840     31        -70,760

 ** Other SOI
 adjustments                 847        2      16,356,845     37         18,492

 ** Tax net income
 reported by SOI          40,607      100      44,245,711    100      1,048,066

 ** Reverse negative
 tax net income           11,992       29       3,599,917      8        134,869

 ** Positive tax net
 income                   28,616       70      40,645,795     92      1,182,936

 ** Net operating
 loss deduction            8,652       21      29,987,810     68       -119,654

 ** Special
 deductions                7,101       17      35,173,196     79        -25,807

 ** Amount to
 reconcile                 5,694       14      25,106,788     57          8,094

 ** Taxable income        23,781       58      37,991,960     86      1,045,568

 Tax before credits       27,166       67      41,195,270     93        367,801

 Foreign tax credit        2,649        7      25,423,122     57        -72,106

 General business
 credit                    4,952       12      33,290,435     75        -13,216

 Other tax credits         4,552       11      29,937,147     68         -4,411

 Tax less credits         26,877       66      40,769,477     92        278,068
 ______________________________________________________________________________

                               [table continued]
 ______________________________________________________________________________

 Part I:
 Financial
 Information            Change
 ______________________________________________________________________________

 Total Frequency/
 Assets

 04 Worldwide
 consolidated
 net income (loss)      -204,580

 05 (Income) Loss
 -- non-includable
 foreign entities       -185,255

 05a Net income from
 non-includable
 foreign entities       -160,527

 05b Net loss from
 non-includable
 foreign entities        -24,728

 06 (Income) Loss
 -- non-includable
 U.S. entities            15,828

 06a Net income from
 non-includable
 U.S. entities             4,577

 06b Net loss from
 non-includable
 U.S. entities            11,250

 07 Income (loss)
 of other
 entities                  1,921

 07a Income (loss)
 of other disregarded
 entities

 07b Income (loss)
 of other
 includable entities

 08 Adjustments to
 eliminations (for
 lines 5 through 7)       36,707

 ** Summary of
 lines 5 through 8      -130,801

 09 Adjustment to
 reconcile to
 tax year                  5,581

 10a Statutory
 intercompany dividend
 adjustment               30,315

 10b Other
 statutory accounting
 adjustments              14,378

 10c Other adjustments
 to reconcile to
 line 11                   6,716

 ** Summary of lines
 10a, 10b, 10c            51,411

 ** Subtotal            -278,389

 ** Amount to
 reconcile                -4,890

 11 Net income per
 income statement
 of included
 corporations           -283,279

 ** Amount to
 Reconcile                     5

 ** Net income per
 Part II Line 30
 Column A               -283,273

 ** Reverse Federal
 tax expense             -43,685

 ** Pretax book
 Income                 -326,959

 P2 PreTaxDif:
 Lines 01-05
 Foreign corporate
 income/loss              24,732

 P2 PreTaxDif:
 Lines 06-08
 U.S. corporate
 income/loss              79,548

 P2 PreTaxDif:
 Lines 09-11
 Partnr/pass-thru
 inc/lo                  -12,971

 P2 PreTaxDif:
 Line 12 Reportable
 transactions              8,154

 P2 PreTaxDif:
 Line 13 Interest
 income                   14,093

 P2 PreTaxDif:
 Line 15 Hedging
 transactions              1,483

 P2 PreTaxDif:
 Line 16
 Mark-to-market
 income/loss               1,043

 P2 PreTaxDif:
 Line 17 Cost of
 goods sold              -79,430

 P2 PreTaxDif:
 Line 18 Sale
 vs. lease                -3,426

 P2 PreTaxDif:
 Line 19 Section
 481(a) adjustments        3,614

 P2 PreTaxDif:
 Lines 23a-24 asset
 disposition             -40,156

 P2 PreTaxDif:
 Line 25 Other
 income/loss with
 differences              95,834

 P2 PreTaxDif:
 Non-parent
 subgroups totals          6,349

 P2 PreTaxDif:
 The Rest, Part II        -3,176

 P3 PreTaxDif:
 Lines 03-04 State
 plus local income
 tax exp                  -1,765

 P3 PreTaxDif:
 Lines 05-06
 Foreign income
 tax exp                  -4,176

 P3 Pretax difference:
 Line 08 Interest
 expense                   2,100

 P3 Pretax difference:
 Lines 9-10 Stock
 options & equity comp    -7,242

 P3 Pretax difference:
 Lines 16-18
 Pension, profit
 share, etc.              -9,775

 P3 Pretax difference:
 Lines 23-25
 Acquisition/
 reorganization costs     -7,704

 P3 Pretax difference:
 Lines 26-31
 Depreciation,
 amortization, &
 impair                   59,493

 P3 Pretax difference:
 Lines 32 Bad debt        23,737

 P3 Pretax difference:
 Line 35 Other
 expenses/deductions
 with differences         69,012

 P3 Pretax difference:
 The rest Part III        -5,602

 -- Pretax difference:
 summary of above        213,760

 -- Amount to reconcile
 P2 Lines 01-25
 to Line 26                  878

 -- Amount to reconcile
 P2 Lines 26-28
 to Parent Subgroup       47,970

 -- Amount to reconcile
 P2 Subgroups to
 Line 30                 -46,954

 -- Amount to reconcile
 P3 Lines 01-35
 to Line 36               -4,400

 -- Subtotal summary
 above & amounts to
 reconcile               211,255

 ** Pretax difference:
 all other                     0

 ** Total pretax
 difference before
 federal tax expense     211,254

 ** Amount to
 reconcile                    -1

 ** Net tax income
 per Part II Line 30
 Column D               -115,705

 ** SOI removed ICD      -17,593

 ** Other SOI
 adjustments               3,669

 ** Tax net income
 reported by SOI        -129,628

 ** Reverse negative
 tax net income           65,292

 ** Positive tax net
 income                  -64,338

 ** Net operating
 loss deduction           30,903

 ** Special
 deductions                8,974

 ** Amount to
 reconcile                 2,474

 ** Taxable income       -21,985

 Tax before credits       -7,428

 Foreign tax credit       -6,077

 General business
 credit                     -293

 Other tax credits         1,811

 Tax less credits        -11,987

      Table 1B. U.S. Corporations With Reconciled Form 1120 Schedule M-3:
                              2007 Part II Detail
 ______________________________________________________________________________

                   Population Overview (Dollars in millions)
              Table amounts may not add to totals due to rounding.
 ______________________________________________________________________________

 Part II:                                                            Column A
 Income Items       Frequency   Percent      Assets      Percent     Book
 ______________________________________________________________________________

 Total
 Frequency/Assets     42,395                47,344,964

 01 Income (loss)
 from equity
 method foreign
 corps                 1,085         3      18,505,923         39         3,087

 02 Gross foreign
 dividends not
 previously taxed      1,823         4      28,061,664         59        39,997

 03 Subpart F,
 QEF, and similar
 income inclusions     1,698         4      30,258,093         64             0

 04 Section 78
 gross-up              1,431         3      25,217,201         53             0

 05 Gross foreign
 distributions
 previously taxed        221         1      10,600,332         22        34,866

 -- Summary of
 lines 1 through 5     3,477         8      33,449,576         71        77,950

 06 Income (loss)
 from equity method
 U.S. corps            1,875         4      18,708,982         40         7,664

 07 U.S. dividends
 not eliminated in
 tax consoldtn         8,404        20      38,034,836         80       112,954

 08 Minority
 interest for
 includable
 corporations            673         2      15,596,635         33        -2,533

 -- Summary of
 lines 6 through 8     9,652        23      39,704,516         84       118,085

 09 Income (loss)
 from U.S.
 partnerships          9,107        21      41,193,709         87        84,093

 10 Income (loss)
 from foreign
 partnerships            708         2      23,786,726         50        12,042

 11 Income (loss)
 from other
 passthrough
 entities              1,203         3      22,296,002         47         1,905

 -- Summary of
 lines 9 through
 11                   10,007        24      41,950,123         89        98,041

 -- Summary of
 lines 1 through
 11                   17,031        40      44,555,183         94       294,075

 12 Items relating
 to reportable
 transactions            250         1      22,982,241         49        -4,819

 13 Interest income   32,737        77      46,741,628         99     1,616,269

 di Tax-exempt
 interest per COMP
 _TX_EXMT_INTRST       6,595        16      30,003,023         63        16,095

 dd Interest
 income excluding
 tax-exempt
 interest             32,476        77      46,716,614         99     1,600,173

 14 Total accrual
 to cash adjustment    1,113         3         323,897          1         1,563

 15 Hedging
 transactions          1,104         3      28,900,236         61       -41,345

 16 Mark-to-market
 income (loss)         1,274         3      28,042,376         59       163,120

 17* Cost of goods
 sold                 24,853        59      28,671,845         61  -170,633,221

 18 Sale vs. lease
 (for sellers
 and/or lessors)         262         1      12,297,427         26        15,578

 19 Section 481(a)
 adjustments           2,692         6      23,010,516         49             0

 20 Unearned/
 deferred revenue      4,493        11      31,822,774         67        84,145

 21 Income
 recognition from
 long-term
 contracts               608         1         922,725          2       122,784

 22 Original issue
 discount & other
 imputed interest        443         1      18,141,680         38        10,877

 23a Income
 statement
 disposition of
 assets other
 than inventory       23,546        56      43,801,068         93       132,057

 23b Gross capital
 gains Schedule D,
 excluding flow-
 through entity        6,967        16      38,986,383         82             0

 23c Gross capital
 losses Schedule D,
 excluding flow-
 thru entit            3,055         7      25,109,134         53             0

 23d Net gain/loss
 reported on Form
 4797, line 17        22,171        52      42,502,060         90             0

 23e Abandonment
 losses                  913         2       5,282,112         11             0

 23f Worthless
 stock losses            206         0       6,914,088         15             0

 23g Other gain/
 loss on
 disposition of
 asset other than
 inventory             2,708         6      10,037,579         21             0

 -- Summary of
 lines 23a through
 23g                  26,085        62      45,302,949         96       132,057

 24 Capital loss
 limitation and
 carryforward used     2,817         7      12,440,522         26             0

 -- Summary of
 lines 23a - 24
 (issue with Form
 8916)?               26,333        62      45,309,019         96       132,057

 25 Other income
 (loss) items with
 differences          19,809        47      44,430,794         94    17,251,641

 -- Summary of
 lines 1 through
 25                   40,575        96      47,281,212        100  -150,987,151

 -- Amount to
 reconcile above to
 Line 26              25,192        59      43,737,986         92         4,142

 26 Total income
 items (combine
 lines 1 thru 25)     40,580        96      47,281,349        100  -150,983,009

 27 Total expense/
 deduction items
 (from Part III
 line 36)             42,395       100      47,344,964        100    -4,672,331

 28 Other items
 with no
 differences          40,263        95      43,852,380         93   156,218,115

 -- Summary of
 lines 26 through
 28                   42,391       100      47,344,920        100       562,775

 ** Amount to
 reconcile to
 Parent Subgroup
 totals               38,373        91      46,737,569         99        -2,073

 29a 1120 subgroup
 reconciliation
 totals (26+27+28)    42,379       100      47,344,433        100       560,690

 29b PC insurance
 subgroup
 reconciliation
 totals                  417         1      22,250,091         47        11,746

 29c Life insurance
 subgroup
 reconciliation
 totals                   52         0      11,183,438         24         1,011

 -- Summary of
 lines 29a through
 29c                  42,379       100      47,344,433        100       573,447

 ** Parent Subgroup
 totals               42,379       100      47,344,433        100       560,702

 ** Non-parent
 Subgroups totals        455         1      23,504,297         50        12,745

 ** Amount to
 reconcile             1,531         4      17,762,959         38          -268

 30 Reconciliation
 totals (combine
 29a through 29c)     42,395       100      47,344,964        100       573,179

 >> Reverse federal
 income tax
 expense              33,105        78      46,531,307         98       272,231

 >> Pretax book
 income and M-3
 difference           42,395       100      47,344,964        100       845,410

 LT Pretax book
 income and M-3
 difference,
 Negativ              18,680        44      15,758,947        33        708,647

 GE Pretax book
 income and M-3
 difference,
 greater than or
 equal to zero        23,715        56      31,586,017        67        136,763
 ______________________________________________________________________________

                               [table continued]
 ______________________________________________________________________________

                                                          Total      Total Diff
 Part II:           Column B  Column C      Column D      Diff-      As a %
 Income Items       Temporary Permanent     Tax           erence     of A
 ______________________________________________________________________________

 Total
 Frequency/Assets

 01 Income (loss)
 from equity
 method foreign
 corps                -3,726       663               0     -3,063           -99

 02 Gross foreign
 dividends not
 previously taxed      4,793    27,228          72,017     32,021            80

 03 Subpart F,
 QEF, and similar
 income inclusions    11,559    51,042          62,597     62,600           N/A

 04 Section 78
 gross-up              2,259    45,942          48,201     48,201           N/A

 05 Gross foreign
 distributions
 previously taxed     -5,951   -28,915               0    -34,866          -100

 -- Summary of
 lines 1 through 5     8,934    95,960         182,815    104,893           135

 06 Income (loss)
 from equity method
 U.S. corps           -5,555      -381               0     -5,937           -77

 07 U.S. dividends
 not eliminated in
 tax consoldtn        -4,825     8,102         116,220      3,277             3

 08 Minority
 interest for
 includable
 corporations             69     2,472               0      2,541          -100

 -- Summary of
 lines 6 through 8   -10,312    10,194         116,220       -119             0

 09 Income (loss)
 from U.S.
 partnerships         10,840    18,738         113,700     29,578            35

 10 Income (loss)
 from foreign
 partnerships          6,424       994          19,463      7,419            62

 11 Income (loss)
 from other
 passthrough
 entities                196       156           2,252        352            18

 -- Summary of
 lines 9 through
 11                   17,460    19,888         135,415     37,348            38

 -- Summary of
 lines 1 through
 11                   16,081   126,042         434,451    142,123            48

 12 Items relating
 to reportable
 transactions        -10,623   -10,751         -26,194    -21,374           444

 13 Interest income   -4,929   -19,812       1,591,539    -24,741            -2

 di Tax-exempt
 interest per COMP
 _TX_EXMT_INTRST           0   -16,095               0    -16,095          -100

 dd Interest
 income excluding
 tax-exempt
 interest             -4,929    -3,717       1,591,539     -8,646            -1

 14 Total accrual
 to cash adjustment      -42       -60           1,467       -101            -6

 15 Hedging
 transactions            110     2,353         -38,883      2,463            -6

 16 Mark-to-market
 income (loss)        -2,798       -15         160,300     -2,813            -2

 17* Cost of goods
 sold                 33,322    -7,592    -170,607,434     25,730             0

 18 Sale vs. lease
 (for sellers
 and/or lessors)      26,384        13          41,973     26,396           169

 19 Section 481(a)
 adjustments            -429       124            -307       -306           N/A

 20 Unearned/
 deferred revenue      6,532       108          90,789      6,640             8

 21 Income
 recognition from
 long-term
 contracts              -799        15         121,784       -784            -1

 22 Original issue
 discount & other
 imputed interest       -464      -196          10,216       -661            -6

 23a Income
 statement
 disposition of
 assets other
 than inventory      -94,379   -37,511               0   -131,889          -100

 23b Gross capital
 gains Schedule D,
 excluding flow-
 through entity       97,263    22,732         120,062    119,995           N/A

 23c Gross capital
 losses Schedule D,
 excluding flow-
 thru entit          -10,476    -7,321         -17,798    -17,797           N/A

 23d Net gain/loss
 reported on Form
 4797, line 17        37,306      -947          36,629     36,359           N/A

 23e Abandonment
 losses               -3,394      -121          -3,513     -3,515           N/A

 23f Worthless
 stock losses           -954    -1,847          -2,860     -2,802           N/A

 23g Other gain/
 loss on
 disposition of
 asset other than
 inventory             4,816       173           4,979      4,988           N/A

 -- Summary of
 lines 23a through
 23g                  30,182   -24,842         137,498      5,340             4

 24 Capital loss
 limitation and
 carryforward used    -1,669      -326          -2,315     -1,995           N/A

 -- Summary of
 lines 23a - 24
 (issue with Form
 8916)?               28,513   -25,168         135,183      3,345             3

 25 Other income
 (loss) items with
 differences         -33,129   -16,532      17,201,984    -49,662             0

 -- Summary of
 lines 1 through
 25                   57,727    48,529    -150,883,008    106,256             0

 -- Amount to
 reconcile above to
 Line 26                 100        -1           7,308         99             2

 26 Total income
 items (combine
 lines 1 thru 25)     57,827    48,528    -150,875,700    106,355             0

 27 Total expense/
 deduction items
 (from Part III
 line 36)            -10,775   304,332      -4,379,491    293,557            -6

 28 Other items
 with no
 differences               0         0     156,218,186          0             0

 -- Summary of
 lines 26 through
 28                   47,052   352,860         962,996    399,912            71

 ** Amount to
 reconcile to
 Parent Subgroup
 totals                   79     1,464          -1,468      1,542           -74

 29a 1120 subgroup
 reconciliation
 totals (26+27+28)    47,131   354,316         961,508    401,446            72

 29b PC insurance
 subgroup
 reconciliation
 totals                8,465       741          20,953      9,206            78

 29c Life insurance
 subgroup
 reconciliation
 totals                  861        85           1,957        946            94

 -- Summary of
 lines 29a through
 29c                  56,457   355,142         984,417    411,598            72

 ** Parent Subgroup
 totals               47,131   354,324         961,528    401,455            72

 ** Non-parent
 Subgroups totals      9,326       818          22,889     10,144            80

 ** Amount to
 reconcile               -60       -87             213       -147            55

 30 Reconciliation
 totals (combine
 29a through 29c)     56,397   355,054         984,630    411,451            72

 >> Reverse federal
 income tax
 expense              -2,922  -269,309               0   -272,231          -100

 >> Pretax book
 income and M-3
 difference           53,475    85,745         984,630    139,220            16

 LT Pretax book
 income and M-3
 difference,
 Negativ            -196,790  -165,149         346,707   -361,939           -51

 GE Pretax book
 income and M-3
 difference,
 greater than or
 equal to zero       250,265   250,894         637,923    501,159           366

      Table 1C. U.S. Corporations With Reconciled Form 1120 Schedule M-3:
                              2007 Part III Detail
 ______________________________________________________________________________

                   Population Overview (Dollars in millions)
              Table amounts may not add to totals due to rounding.
 ______________________________________________________________________________

 Part III:
 Expense Items
 (sign matches                                                       Column A
 Part II)           Frequency   Percent      Assets      Percent     Book
 ______________________________________________________________________________

 Total Assets         42,395                47,344,964

 01 U.S. current
 income tax
 expense              30,815        73      45,664,243         96      -277,861

 02 U.S. deferred
 income tax
 expense              15,896        37      31,672,249         67         6,257

 -- Summary of
 lines 1 and 2        33,105        78      46,531,307         98      -271,603

 03 State and
 local current
 income tax
 expense              27,936        66      43,707,648         92       -34,110

 04 State and
 local deferred
 income tax
 expense               8,159        19      24,850,441         52         2,162

 -- Summary of
 lines 3 and 4        28,765        68      43,822,764         93       -31,948

 05 Foreign
 current income
 tax expense
 (other than WH)       2,258         5      29,385,643         62       -26,905

 06 Foreign
 deferred income
 tax expense             464         1      17,479,800         37           205

 -- Summary of
 lines 5 and 6         2,339         6      29,816,806         63       -26,700

 -- Summary of
 lines 1 through
 6                    36,994        87      46,972,899         99      -330,251

 07 Foreign
 withholding
 taxes                 1,533         4      24,274,845         51        -4,803

 08 Interest
 expense              31,266        74      46,330,097         98    -1,531,782

 09 Stock
 option expense        7,050        17      36,085,141         76       -33,367

 10 Other
 equity-based
 compensation          2,811         7      32,597,113         69       -31,606

 -- Summary of
 lines 9 and 10        7,953        19      38,053,984         80       -64,973

 11 Meals and
 entertainment        36,079        85      45,952,922         97       -20,260

 12 Fines and
 penalties            13,029        31      38,150,618         81        -1,156

 13 Punitive
 damages                 368         1       6,481,460         14        -1,412

 14 Parachute
 payments                 85         0       3,568,108          8          -629

 15 Compensation
 with section
 162(m)
 limitation            1,321         3      24,628,895         52       -12,400

 16 Pension and
 profit-sharing       18,312        43      42,066,679         89       -62,685

 17 Other
 post-retirement
 benefits              2,471         6      29,772,045         63       -17,395

 18 Deferred
 compensation          6,296        15      36,005,922         76       -45,501

 -- Summary of
 lines 16 through
 18                   20,904        49      44,224,997         93      -125,581

 19 Charitable
 contribution of
 cash and
 tangible
 property             26,081        62      44,669,970         94       -10,724

 20 Charitable
 contribution of
 intangible
 property                228          1      1,825,217          4          -201

 21 Charitable
 contribution
 limitation/
 carryforward         13,437        32      12,644,856         27             0

 -- Summary of
 lines 19 through
 21                   28,362        67      44,913,896         95       -10,924

 22 Domestic
 production
 activities
 deduction             7,270        17      13,942,298         29             0

 23 Current year
 acquisition/
 reorganization
 invest bankng fees      229         1       2,506,055          5          -873

 24 Current year
 acquisition
 reorganization
 legal plus
 accounting fees         644         2       8,193,236         17        -1,852

 25 Current year
 acquisition/
 reorganization
 other costs             688         2      12,015,241         25        -4,758

 -- Summary of
 lines 23 through
 25                    1,170         3      16,552,860         35        -7,483

 26 Amortization/
 impairment of
 goodwill              7,126        17      32,383,822         68       -75,292

 27 Amortization
 of acquisition
 reorganization,
 start-up costs        4,245        10      26,443,086         56        -5,720

 28 Other
 amortization or
 impairment
 write-offs           19,066        45      42,598,184         90      -104,060

 29 Section 198
 environmental
 remediation
 costs                   192         0       1,730,930          4          -330

 30 Depletion          1,213         3       7,221,533         15       -19,015

 31 Depreciation      37,903        89      46,047,287         97      -327,147

 -- Summary of
 lines 26 through
 31                   38,806        92      46,270,843         98      -531,564

 32 Bad debt
 expense              25,664        61      43,840,646         93      -114,681

 33 Corporate-
 owned life
 insurance
 premiums              7,791        18      16,008,500         34           -61

 34 Purchase
 versus lease            438         1       8,078,448         17        -1,394

 35 Other expense/
 deduction items
 with differences     33,258        78      46,231,388         98    -1,913,034

 -- Summary of
 lines 3 through
 35                   42,226       100      47,257,884        100    -4,400,792

 -- Summary of
 lines 1 through
 35                   42,388       100      47,344,876        100    -4,672,395

 ** Amount to
 reconcile            32,194        76      43,807,181         93            65

 36 Total expense/
 deduction items
 (also on Part II)    42,395       100      47,344,964        100    -4,672,331

 >> Reverse
 federal income
 tax expense          33,074        78      46,510,502         98       271,603

 >> Part III
 expense items
 before tax
 expense              42,235       100      47,258,784        100    -4,400,727
 ______________________________________________________________________________

                               [table continued]
 ______________________________________________________________________________

 Part III:
 Expense Items                                            Total      Total Diff
 (sign matches      Column B  Column C      Column D      Diff-      As a %
 (Part II)          Temporary Permanent     Tax           erence     of A
 ______________________________________________________________________________

 Total Assets

 01 U.S. current
 income tax
 expense               1,562   276,875               0    278,437          -100

 02 U.S. deferred
 income tax
 expense               1,360    -7,566               0     -6,206           -99

 -- Summary of
 lines 1 and 2         2,922   269,309               0    272,231          -100

 03 State and
 local current
 income tax
 expense              -3,375        37         -37,427     -3,339            10

 04 State and
 local deferred
 income tax
 expense              -1,042    -1,133               0     -2,175          -101

 -- Summary of
 lines 3 and 4        -4,417    -1,096         -37,427     -5,514            17

 05 Foreign
 current income
 tax expense
 (other than WH)      -2,913    27,933          -1,885     25,020           -93

 06 Foreign
 deferred income
 tax expense            -764       559               0       -205          -100

 -- Summary of
 lines 5 and 6        -3,677    28,492          -1,885     24,815           -93

 -- Summary of
 lines 1 through
 6                    -5,173   296,705         -39,312    291,532           -88

 07 Foreign
 withholding
 taxes                   -23     4,192            -635      4,170           -87

 08 Interest
 expense              -1,447     9,744      -1,523,510      8,297            -1

 09 Stock
 option expense          929   -51,315         -83,756    -50,386           151

 10 Other
 equity-based
 compensation          7,841    -9,285         -33,053     -1,444             5

 -- Summary of
 lines 9 and 10        8,770   -60,600        -116,809    -51,830            80

 11 Meals and
 entertainment            16     8,281         -11,987      8,297           -41

 12 Fines and
 penalties                16     1,141              -3      1,157          -100

 13 Punitive
 damages              -1,238       -21          -2,670     -1,259            89

 14 Parachute
 payments                -15       604             -40        589           -94

 15 Compensation
 with section
 162(m)
 limitation               -3     1,961         -10,441      1,959           -16

 16 Pension and
 profit-sharing       -8,121    -1,589         -72,392     -9,709            15

 17 Other
 post-retirement
 benefits               -751    -1,304         -19,456     -2,055            12

 18 Deferred
 compensation          2,967       112         -42,423      3,079            -7

 -- Summary of
 lines 16 through
 18                   -5,904    -2,781        -134,271     -8,685             7

 19 Charitable
 contribution of
 cash and
 tangible
 property               -174    -1,417         -12,311     -1,592            15

 20 Charitable
 contribution of
 intangible
 property                -17      -443            -661       -460           229

 21 Charitable
 contribution
 limitation/
 carryforward          1,323       267           1,585      1,590           N/A

 -- Summary of
 lines 19 through
 21                    1,131    -1,593         -11,388       -462             4

 22 Domestic
 production
 activities
 deduction              -153   -19,175         -19,309    -19,329           N/A

 23 Current year
 acquisition/
 reorganization
 invest bankng fees     -166       -68          -1,107       -234            27

 24 Current year
 acquisition
 reorganization
 legal plus
 accounting fees         181       606          -1,065        787           -42

 25 Current year
 acquisition/
 reorganization
 other costs          -3,069    -2,985         -10,812     -6,054           127

 -- Summary of
 lines 23 through
 25                   -3,055    -2,446         -12,984     -5,501            74

 26 Amortization/
 impairment of
 goodwill             -9,496    56,043         -28,716     46,547           -62

 27 Amortization
 of acquisition
 reorganization,
 start-up costs          991       516          -4,217      1,507           -26

 28 Other
 amortization or
 impairment
 write-offs           18,888     3,242         -81,904     22,130           -21

 29 Section 198
 environmental
 remediation
 costs                  -191       -50            -571       -241            73

 30 Depletion          6,376    -4,247         -16,880      2,129           -11

 31 Depreciation     -23,434       469        -338,575    -22,965             7

 -- Summary of
 lines 26 through
 31                   -6,866    55,973        -470,862     49,107            -9

 32 Bad debt
 expense              30,605      -365         -84,446     30,240           -26

 33 Corporate-
 owned life
 insurance
 premiums                  9      -449            -506       -440           721

 34 Purchase
 versus lease         -1,409        -1          -2,804     -1,410           101

 35 Other expense/
 deduction items
 with differences    -26,075    13,152      -1,926,125    -12,923             1

 -- Summary of
 lines 3 through
 35                  -13,736    35,014      -4,368,108     21,278             0

 -- Summary of
 lines 1 through
 35                  -10,814   304,323      -4,368,108    293,509            -6

 ** Amount to
 reconcile                38         9         -11,383         47            72

 36 Total expense/
 deduction items
 (also on Part II)   -10,775   304,332      -4,379,490    293,557            -6

 >> Reverse
 federal income
 tax expense          -2,922  -269,309               0   -272,231          -100

 >> Part III
 expense items
 before tax
 expense             -13,697    35,023      -4,379,490     21,326             0

   Table 2A. U.S. Corporations With Reconciled Form 1120 Schedule M-3: 2007:
                     Asset Size by Financial Statement Type

             Dollar amounts in millions. Table amounts may not add
                           to totals due to rounding.
 ______________________________________________________________________________

                                                Returns         Total Assets
                                            ___________________________________
 Asset Size by Financial
 Statement Type                              Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                        42,395     100    47,344,964   100
 a SEC 10-K/Public                           5,418      13    35,549,188    75
 b Audited                                  17,228      41     5,519,272    12
 c Unaudited/Books                          19,748      47     6,276,504    13

                       All                     247       0    34,138,103    72
 a  > $20 billion      a SEC 10-K/Public       180       0    28,967,128    61
 or more               b Audited                29       0     2,156,793     4
                       c Unaudited/Books        38       0     3,014,183     6

                       All                     560       1     5,281,799    11
                       a SEC 10-K/Public       338       1     3,302,814     7
 c  > $5 billion -     b Audited                87       0       738,361     2
 < $20 billion         c Unaudited/Books       135       0     1,240,625     3

                       All                   1,913       5     4,067,910     9
                       a SEC 10-K/Public     1,036       2     2,290,974     5
 d  > $1 billion -     b Audited               462       1       939,049     2
 < $5 billion          c Unaudited/Books       415       1       837,886     2

                       All                   1,772       4     1,249,610     3
                       a SEC 10-K/Public       732       2       522,874     1
 e  > $500 million -   b Audited               642       2       447,551     1
 < $1 billion          c Unaudited/Books       398       1       279,185     1

                       All                   2,530       6       890,815     2
                       a SEC 10-K/Public       702       2       253,722     1
 f  > $250 million -   b Audited             1,181       3       410,188     1
 < $500 million        c Unaudited/Books       647       2       226,906     0

                       All                   5,035      12       799,725     2
                       a SEC 10-K/Public       879       2       145,731     0
 g  > $100 million -   b Audited             2,620       6       414,414     1
 < $250 million        c Unaudited/Books     1,536       4       239,580     1

                       All                   5,363      13       379,330     1
                       a SEC 10-K/Public       546       1        39,261     0
 h  > $50 million -    b Audited             2,727       6       193,798     0
 < $100 million        c Unaudited/Books     2,090       5       146,270     0

                       All                   7,574      18       266,756     1
                       a SEC 10-K/Public       484       1        17,867     0
 i  > $25 million -    b Audited             3,426       8       121,825     0
 < $50 million         c Unaudited/Books     3,665       9       127,063     0

                       All                  17,401      41       270,916     1
                       a SEC 10-K/Public       522       1         8,817     0
 j  > $10 million -    b Audited             6,055      14        97,294     0
 < $25 million         c Unaudited/Books    10,824      26       164,805     0

                               [table continued]

                                              Tax After          Foreign Tax
                                               Credits              Credit
                                            ___________________________________
 Asset Size by Financial
 Statement Type                               Sum     Col%         Sum    Col%
 ______________________________________________________________________________

 All                                        266,081    100        78,183   100
 a SEC 10-K/Public                          188,279     71        67,639    87
 b Audited                                   41,972     16         4,906     6
 c Unaudited/Books                           35,829     13         5,639     7

                       All                  124,723     47        57,357    74
 a  > $20 billion      a SEC 10-K/Public    111,774     42        53,833    69
 or more               b Audited              7,697      3         2,516     3
                       c Unaudited/Books      5,252      2         1,008     1

                       All                   53,819      20       11,149    14
                       a SEC 10-K/Public     36,995      14        7,570    10
 c  > $5 billion -     b Audited              6,142       2          449     1
 < $20 billion         c Unaudited/Books     10,683       4        3,130     4

                       All                   44,485      17        6,877     9
                       a SEC 10-K/Public     28,472      11        5,301     7
 d  > $1 billion -     b Audited              9,043       3          830     1
 < $5 billion          c Unaudited/Books      6,970       3          746     1

                       All                   12,059       5        1,058     1
                       a SEC 10-K/Public      6,108       2          590     1
 e  > $500 million -   b Audited              3,606       1          307     0
 < $1 billion          c Unaudited/Books      2,344       1          161     0

                       All                    9,081       3          939     1
                       a SEC 10-K/Public      2,779       1          230     0
 f  > $250 million -   b Audited              4,173       2          411     1
 < $500 million        c Unaudited/Books      2,129       1          298     0

                       All                    8,358       3          411     1
                       a SEC 10-K/Public      1,638       1           98     0
 g  > $100 million -   b Audited              4,625       2          221     0
 < $250 million        c Unaudited/Books      2,095       1           92     0

                       All                    4,948       2          237     0
                       a SEC 10-K/Public        262       0            9     0
 h  > $50 million -    b Audited              2,898       1          110     0
 < $100 million        c Unaudited/Books      1,789       1          118     0

                       All                    3,952       1          100     0
                       a SEC 10-K/Public        176       0            9     0
 i  > $25 million -    b Audited              2,087       1           49     0
 < $50 million         c Unaudited/Books      1,689       1           43     0

                       All                    4,655       2           55     0
                       a SEC 10-K/Public         75       0            1     0
 j  > $10 million -    b Audited              1,702       1           13     0
 < $25 million         c Unaudited/Books      2,878       1           42     0
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                                Tax Net             Worldwide
                                                 Income           Income (P1L4)
                                            ___________________________________
 Asset Size by Financial
 Statement Type                               Sum      Col%        Sum    Col%
 ______________________________________________________________________________

 All                                        918,438     100      804,393   100
 a SEC 10-K/Public                          732,238      80      679,596    84
 b Audited                                  109,468      12       66,549     8
 c Unaudited/Books                           76,731       8       58,248     7

                       All                  523,360      57      507,455    63
 a  > $20 billion      a SEC 10-K/Public    496,034      54      470,777    58
 or more               b Audited             26,467       3       24,951     4
                       c Unaudited/Books        859       0       11,728     2

                       All                  181,128      20      160,169    20
                       a SEC 10-K/Public    122,933      13      119,721    15
 c  > $5 billion -     b Audited             17,201       2       13,835     2
 < $20 billion         c Unaudited/Books     40,995       4       26,613     3

                       All                  138,573      15      116,778    15
                       a SEC 10-K/Public     95,568      10       87,238    11
 d  > $1 billion -     b Audited             26,297       3       15,027     2
 < $5 billion          c Unaudited/Books     16,709       2       14,513     2

                       All                   31,352       3       16,666     2
                       a SEC 10-K/Public     16,506       2       11,653     1
 e  > $500 million -   b Audited              9,131       1        4,773     1
 < $1 billion          c Unaudited/Books      5,716       1          239     0

                       All                   20,264       2       12,549     2
                       a SEC 10-K/Public      5,646       1        1,982     0
 f  > $250 million -   b Audited             11,313       1        5,530     1
 < $500 million        c Unaudited/Books      3,305       0        5,037     1

                       All                   15,925       2        3,810     0
                       a SEC 10-K/Public      1,392       0       -2,809     0
 g  > $100 million -   b Audited             11,159       1        5,051     1
 < $250 million        c Unaudited/Books      3,374       0        1,567     0

                       All                    4,743       1       -2,567     0
                       a SEC 10-K/Public     -2,448       0       -4,705    -1
 h  > $50 million -    b Audited              5,489       1        1,541     0
 < $100 million        c Unaudited/Books      1,703       0          598     0

                       All                    1,822       0       -5,152    -1
                       a SEC 10-K/Public     -2,007       0       -2,317     0
 i  > $25 million -    b Audited              2,678       0       -1,555     0
 < $50 million         c Unaudited/Books      1,151       0       -1,281     0

                       All                    1,270       0       -5,315    -1
                       a SEC 10-K/Public     -1,385       0       -1,945     0
 j  > $10 million -    b Audited               -266       0       -2,603     0
 < $25 million         c Unaudited/Books      2,921       0         -766     0
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                             Net Foreign            Net U.S.
                                            (Income) Loss        (Income) Loss
                                            Removed (P1L5)       Removed (P1L6)
                                            ___________________________________
 Asset Size by Financial
 Statement Type                               Sum      Col%        Sum    Col%
 ______________________________________________________________________________

 All                                       -487,686     100     -111,934   100
 a SEC 10-K/Public                         -457,794      94      -94,438    84
 b Audited                                  -14,809       3       -7,494     7
 c Unaudited/Books                          -15,083       3      -10,002     9

                       All                 -352,669      72      -78,180    70
 a  > $20 billion      a SEC 10-K/Public   -344,266      71      -72,667    65
 or more               b Audited             -3,557       1       -3,822     3
                       c Unaudited/Books     -4,846       1       -1,690     2

                       All                  -69,371      14      -11,950    11
                       a SEC 10-K/Public    -63,838      13       -9,396     8
 c  > $5 billion -     b Audited             -3,209       1       -1,488     1
 < $20 billion         c Unaudited/Books     -2,325       0       -1,066     1

                       All                  -51,781      11      -15,816    14
                       a SEC 10-K/Public    -41,755       9      -11,248    10
 d  > $1 billion -     b Audited             -5,447       1          -94     0
 < $5 billion          c Unaudited/Books     -4,578       1       -4,474     4

                       All                   -6,443       1         -956     1
                       a SEC 10-K/Public     -4,456       1       -1,001     1
 e  > $500 million -   b Audited             -1,535       0           41     0
 < $1 billion          c Unaudited/Books       -452       0            4     0

                       All                   -5,558       1       -2,388     2
                       a SEC 10-K/Public     -2,783       1          478     0
 f  > $250 million -   b Audited               -595       0         -380     0
 < $500 million        c Unaudited/Books     -2,181       0       -2,486     2

                       All                   -1,751       0          119     0
                       a SEC 10-K/Public     -1,048       0          409     0
 g  > $100 million -   b Audited               -295       0         -367     0
 < $250 million        c Unaudited/Books       -409       0           78     0

                       All                      279       0         -997     1
                       a SEC 10-K/Public        605       0           19     0
 h  > $50 million -    b Audited               -114       0         -750     1
 < $100 million        c Unaudited/Books       -212       0         -266     0

                       All                     -320       0         -757     1
                       a SEC 10-K/Public       -275       0         -630     1
 i  > $25 million -    b Audited                 88       0          -51     0
 < $50 million         c Unaudited/Books       -133       0          -75     0

                       All                      -72       0       -1,009     1
                       a SEC 10-K/Public         20       0         -400     0
 j  > $10 million -    b Audited               -144       0         -581     1
 < $25 million         c Unaudited/Books         52       0          -27     0
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                               Net Oth.
                                            Includable Inc.       Total Book
                                             (Loss) (P1L7)      Income (P1L11)
                                            ___________________________________
 Asset Size by Financial
 Statement Type                               Sum      Col%        Sum    Col%
 ______________________________________________________________________________

 All                                         11,550     100      573,171   100
 a SEC 10-K/Public                            4,365      38      454,831    79
 b Audited                                    6,624      57       83,420    15
 c Unaudited/Books                              561       5       34,920     6

                       All                   10,891      94      368,398    64
 a  > $20 billion      a SEC 10-K/Public      3,412      30      310,050    54
 or more               b Audited              7,145      62       51,378     9
                       c Unaudited/Books        335       3        6,969     1

                       All                      417       4      122,467    21
                       a SEC 10-K/Public        853       7       88,567    15
 c  > $5 billion -     b Audited               -475      -4        8,418     1
 < $20 billion         c Unaudited/Books         38       0       25,483     4

                       All                      380       3       76,284    13
                       a SEC 10-K/Public        169       1       61,077    11
 d  > $1 billion -     b Audited                 62       1       13,861     2
 < $5 billion          c Unaudited/Books        150       1        1,346     0

                       All                     -231      -2       11,049     2
                       a SEC 10-K/Public        -98      -1        7,571     1
 e  > $500 million -   b Audited               -144      -1        3,535     1
 < $1 billion          c Unaudited/Books         10       0          -58     0

                       All                       80       1        7,802     1
                       a SEC 10-K/Public         96       1           81     0
 f  > $250 million -   b Audited                -18       0        5,370     1
 < $500 million        c Unaudited/Books          2       0        2,351     0

                       All                       23       0        2,592     0
                       a SEC 10-K/Public          2       0       -3,259    -1
 g  > $100 million -   b Audited                 30       0        4,674     1
 < $250 million        c Unaudited/Books         -9       0        1,178     0

                       All                      -84      -1       -2,976    -1
                       a SEC 10-K/Public        -67      -1       -3,928    -1
 h  > $50 million -    b Audited                -19       0          831     0
 < $100 million        c Unaudited/Books          2       0          121     0

                       All                        9       0       -6,139    -1
                       a SEC 10-K/Public          0       0       -3,149    -1
 i  > $25 million -    b Audited                 13       0       -1,429     0
 < $50 million         c Unaudited/Books         -4       0       -1,560     0

                       All                       64       1       -6,307    -1
                       a SEC 10-K/Public         -1       0       -2,180     0
 j  > $10 million -    b Audited                 28       0       -3,217    -1
 < $25 million         c Unaudited/Books         37       0         -909     0

   Table 2B. U.S. Corporations With Reconciled Form 1120 Schedule M-3: 2007:
                     Asset Size by Financial Statement Type

               Dollar amounts in millions. Table amounts may not
                         add to totals due to rounding.
 ______________________________________________________________________________

                                                                 Pretax Temp
                                              Pretax Book            Diff
                                          _____________________________________
 Asset Size by Financial
 Statement Type                               Sum     Col%        Sum     Col%
 ______________________________________________________________________________

 All                                       845,410     100      53,475     100
 a SEC 10-K/Public                         651,809      77      40,831      76
 b Audited                                 123,552      15      19,663      37
 c Unaudited/Books                          70,050       8      -7,019     -13

                       All                 491,595      58       8,468      16
 a > $20 billion       a SEC 10-K/Public   416,890      49      29,073      54
 or more               b Audited            62,046       7      -5,739     -11
                       c Unaudited/Books    12,658       2     -14,864     -28

                       All                 183,302      22      11,793      22
 c >  $5 billion -     a SEC 10-K/Public   132,584      16          88       0
 < $20 billion         b Audited            14,954       2       6,658      12
                       c Unaudited/Books    35,764       4       5,047       9

                       All                 123,981      15      10,136      19
 d >  $1 billion -     a SEC 10-K/Public    94,943      11       4,199       8
 < $5 billion          b Audited            20,514       2       7,596      14
                       c Unaudited/Books     8,524       1      -1,659      -3

                       All                  23,450       3       6,316      12
 e > $500 million -    a SEC 10-K/Public    14,427       2       1,706       3
 < $1 billion          b Audited             6,800       1       1,832       3
                       c Unaudited/Books     2,224       0       2,778       5

                       All                  16,548       2       4,291       8
 f > $250 million -    a SEC 10-K/Public     3,241       0       1,959       4
 < $500 million        b Audited             9,012       1       2,044       4
                       c Unaudited/Books     4,295       1         289       1

                       All                  10,426       1       4,846       9
 g > $100 million -    a SEC 10-K/Public    -1,387       0       2,316       4
 < $250 million        b Audited             8,554       1       2,525       5
                       c Unaudited/Books     3,259       0           6       0

                       All                     960       0       2,695       5
 h >  $50 million -    a SEC 10-K/Public    -3,705       0         528       1
 < $100 million        b Audited             3,041       0       1,983       4
                       c Unaudited/Books     1,624       0         184       0

                       All                  -2,719       0       2,182       4
 i >  $25 million -    a SEC 10-K/Public    -3,060       0         438       1
 < $50 million         b Audited               318       0       1,486       3
                       c Unaudited/Books        23       0         257       0

                       All                  -2,133       0       2,746       5
 j >  $10 million -    a SEC 10-K/Public    -2,124       0         524       1
 < $25 million         b Audited            -1,687       0       1,278       2
                       c Unaudited/Books     1,679       0         943       2
 ______________________________________________________________________________

                               [table continued]
 ______________________________________________________________________________

                                             Pretax Perm          Tax Income
                                                 Diff              (P2L30D)
                                          _____________________________________
 Asset Size by Financial
 Statement Type                               Sum     Col%        Sum     Col%
 ______________________________________________________________________________

 All                                        85,745     100     984,630     100
 a SEC 10-K/Public                         100,378     117     793,017      81
 b Audited                                 -30,368     -35     112,846      11
 c Unaudited/Books                          15,736      18      78,766       8

                       All                  66,837      78     566,901      57
 a > $20 billion       a SEC 10-K/Public    94,779     111     540,742      55
 or more               b Audited           -29,466     -34      26,842       3
                       c Unaudited/Books     1,524       2        -682       0

                       All                  -1,302      -2     193,793      20
 c >  $5 billion -     a SEC 10-K/Public       368       0     133,040      14
 < $20 billion         b Audited            -2,790      -3      18,821       2
                       c Unaudited/Books     1,120       1      41,932       4

                       All                  11,291      13     145,407      15
 d >  $1 billion -     a SEC 10-K/Public     1,948       2     101,088      10
 < $5 billion          b Audited              -918      -1      27,192       3
                       c Unaudited/Books    10,261      12      17,126       2

                       All                   2,244       3      32,011       3
 e > $500 million -    a SEC 10-K/Public       628       1      16,762       2
 < $1 billion          b Audited               667       1       9,299       1
                       c Unaudited/Books       948       1       5,950       1

                       All                   1,526       2      22,366       2
 f > $250 million -    a SEC 10-K/Public       513       1       5,712       1
 < $500 million        b Audited               461       1      11,517       1
                       c Unaudited/Books       553       1       5,137       1

                       All                     849       1      16,121       2
 g > $100 million -    a SEC 10-K/Public       574       1       1,503       0
 < $250 million        b Audited                96       0      11,175       1
                       c Unaudited/Books       180       0       3,444       0

                       All                   1,193       1       4,849       0
 h >  $50 million -    a SEC 10-K/Public       736       1      -2,441       0
 < $100 million        b Audited               515       1       5,539       1
                       c Unaudited/Books       -58       0       1,751       0

                       All                   2,408       3       1,871       0
 i >  $25 million -    a SEC 10-K/Public       617       1      -2,004       0
 < $50 million         b Audited               901       1       2,705       0
                       c Unaudited/Books       890       1       1,170       0

                       All                     699       1       1,312       0
 j >  $10 million -    a SEC 10-K/Public       215       0      -1,385       0
 < $25 million         b Audited               166       0        -243       0
                       c Unaudited/Books       318       0       2,940       0
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                            P2 Lns 1-5 Inc     P2 Lns 9-11 Inc
                                             fr Fgn Corps        fr PassThrus
                                                TotDiff             TotDiff
                                          _____________________________________
 Asset Size by Financial
 Statement Type                              Sum      Col%        Sum     Col%
 ______________________________________________________________________________

 All                                       104,893     100      37,348     100
 a SEC 10-K/Public                          90,277      86      41,176     110
 b Audited                                   2,464       2       3,854      10
 c Unaudited/Books                          12,152      12      -7,682     -21

                       All                  66,380      63      21,114      57
 a > $20 billion       a SEC 10-K/Public    65,314      62      28,176      76
 or more               b Audited                38       0       4,065      11
                       c Unaudited/Books     1,027       1     -11,128     -30

                       All                  12,418      12      10,473      28
 c >  $5 billion -     a SEC 10-K/Public    12,823      12       6,605      18
 < $20 billion         b Audited               490       0        -185       0
                       c Unaudited/Books      -896      -1       4,053      11

                       All                  21,628      21       5,115      14
 d >  $1 billion -     a SEC 10-K/Public     9,738       9       5,136      14
 < $5 billion          b Audited               834       1         158       0
                       c Unaudited/Books    11,056      11        -179       0

                       All                   2,096       2       1,431       4
 e > $500 million -    a SEC 10-K/Public     1,473       1         662       2
 < $1 billion          b Audited               301       0          87       0
                       c Unaudited/Books       322       0         682       2

                       All                   1,275       1        -409      -1
 f > $250 million -    a SEC 10-K/Public       697       1         212       1
 < $500 million        b Audited               249       0        -624      -2
                       c Unaudited/Books       329       0           3       0

                       All                     483       0         -19       0
 g > $100 million -    a SEC 10-K/Public       136       0         280       1
 < $250 million        b Audited               244       0         154       0
                       c Unaudited/Books       103       0        -454      -1

                       All                     285       0        -287      -1
 h >  $50 million -    a SEC 10-K/Public        18       0          67       0
 < $100 million        b Audited               135       0          26       0
                       c Unaudited/Books       132       0        -380      -1

                       All                     179       0         -13       0
 i >  $25 million -    a SEC 10-K/Public        49       0          -1       0
 < $50 million         b Audited               106       0          48       0
                       c Unaudited/Books        24       0         -60       0

                       All                     150       0         -56       0
 j >  $10 million -    a SEC 10-K/Public        29       0          39       0
 < $25 million         b Audited                67       0         125       0
                       c Unaudited/Books        54       0        -220      -1
 ______________________________________________________________________________

                               [table continued]
 ______________________________________________________________________________

                                               P2 Ln 12          P2 Ln 25 Othr
                                            Reportbl Trans       Income Items
                                                TotDiff             TotDiff
                                          _____________________________________
 Asset Size by Financial
 Statement Type                               Sum     Col%        Sum     Col%
 ______________________________________________________________________________

 All                                       -21,374     100     -49,662     100
 a SEC 10-K/Public                         -18,697      87     -12,681      26
 b Audited                                    -478       2     -30,161      61
 c Unaudited/Books                          -2,200      10      -6,819      14

                       All                 -16,560      77     -37,453      75
 a > $20 billion       a SEC 10-K/Public   -15,806      74      -5,891      12
 or more               b Audited              -405       2     -30,886      62
                       c Unaudited/Books      -349       2        -677       2

                       All                  -2,560      12       2,559      -5
 c >  $5 billion -     a SEC 10-K/Public    -2,450      11         588      -1
 < $20 billion         b Audited                 0       0       1,443      -3
                       c Unaudited/Books      -110       1         528      -1

                       All                  -1,049       5     -13,015      26
 d >  $1 billion -     a SEC 10-K/Public      -234       1      -8,062      16
 < $5 billion          b Audited               -69       0        -429       1
                       c Unaudited/Books      -747       3      -4,524       9

                       All                    -251       1        -932       2
 e > $500 million -    a SEC 10-K/Public         0       0         479      -1
 < $1 billion          b Audited                -8       0        -678       1
                       c Unaudited/Books      -243       1        -734       1

                       All                    -239       1        -911       2
 f > $250 million -    a SEC 10-K/Public      -207       1        -290       1
 < $500 million        b Audited                 2       0         -47       0
                       c Unaudited/Books       -34       0        -574       1

                       All                     -11       0         360      -1
 g > $100 million -    a SEC 10-K/Public         0       0         510      -1
 < $250 million        b Audited                 6       0         -93       0
                       c Unaudited/Books       -16       0         -57       0

                       All                       0       0         651      -1
 h >  $50 million -    a SEC 10-K/Public         0       0          53       0
 < $100 million        b Audited                 0       0         854      -2
                       c Unaudited/Books         0       0        -256       1

                       All                    -701       3        -701       1
 i >  $25 million -    a SEC 10-K/Public         0       0         -52       0
 < $50 million         b Audited                 0       0        -196       0
                       c Unaudited/Books      -702       3        -454       1

                       All                      -3       0        -218       0
 j >  $10 million -    a SEC 10-K/Public         0       0         -17       0
 < $25 million         b Audited                -3       0        -129       0
                       c Unaudited/Books         1       0         -72       0
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                              P3 Lns 9-10
                                                StkOpt           P3 Ln 35 Othr
                                               EqtyComp           Expns Items
                                                TotDiff             TotDiff
                                          _____________________________________
 Asset Size by Financial
 Statement Type                               Sum     Col%        Sum     Col%
 ______________________________________________________________________________

 All                                       -51,830     100     -12,923     100
 a SEC 10-K/Public                         -45,597      88     -29,922     232
 b Audited                                  -1,365       3       7,466     -58
 c Unaudited/Books                          -4,868       9       9,533     -74

                       All                 -24,291      46     -24,977     193
 a > $20 billion       a SEC 10-K/Public   -22,239      43     -22,186     172
 or more               b Audited            -1,067       2      -3,287      26
                       c Unaudited/Books      -985       2         496      -4

                       All                 -12,938      25        -155       1
 c >  $5 billion -     a SEC 10-K/Public   -11,176      22      -7,763      60
 < $20 billion         b Audited              -275       1       2,281     -18
                       c Unaudited/Books    -1,487       3       5,327     -41

                       All                 -11,682      23        -237       2
 d >  $1 billion -     a SEC 10-K/Public    -9,801      19      -3,464      27
 < $5 billion          b Audited              -185       0       3,073     -24
                       c Unaudited/Books    -1,695       3         154      -1

                       All                  -1,625       3       1,533     -12
 e > $500 million -    a SEC 10-K/Public    -1,493       3         310      -2
 < $1 billion          b Audited              -104       0         464      -4
                       c Unaudited/Books       -28       0         759      -6

                       All                  -1,149       2       2,179     -17
 f > $250 million -    a SEC 10-K/Public    -1,025       2         757      -6
 < $500 million        b Audited                18       0       1,053      -8
                       c Unaudited/Books      -143       0         368      -3

                       All                    -905       2       1,816     -14
 g > $100 million -    a SEC 10-K/Public      -642       1         814      -6
 < $250 million        b Audited               -70       0         886      -7
                       c Unaudited/Books      -193       0         115      -1

                       All                     329      -1       2,323     -18
 h >  $50 million -    a SEC 10-K/Public       382      -1         578      -4
 < $100 million        b Audited               161       0       1,238     -10
                       c Unaudited/Books      -214       0         507      -4

                       All                     299      -1       2,198     -17
 i >  $25 million -    a SEC 10-K/Public       240       0         740      -6
 < $50 million         b Audited                84       0         906      -7
                       c Unaudited/Books       -26       0         551      -4

                       All                     132       0       2,398     -19
 j >  $10 million -    a SEC 10-K/Public       156       0         291      -2
 < $25 million         b Audited                74       0         851      -7
                       c Unaudited/Books       -98       0       1,256     -10

   Table 3A. U.S. Corporations With Reconciled Form 1120 Schedule M-3: 2007:
                           Asset Size by Return Type

             Dollar amounts in millions. Table amounts may not add
                           to totals due to rounding.
 ______________________________________________________________________________

                                                Returns          Total Assets
                                          _____________________________________

 Asset Size by Return Type                   Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                        42,395     100    47,344,964   100
 a 1120 Consol                              20,735      49    19,316,521    41
 b 1120 MixGrp                                 444       1    24,493,409    52
 c 1120 UnCons                              21,216      50     3,535,034     7

                       All                     247       1    34,138,103    72
 a > $20 billion       a 1120 Consol           153       0     9,065,242    19
 or more               b 1120 MixGrp            89       0    23,328,476    49
                       c 1120 UnCons             5       0     1,744,386     4

                       All                     560       1     5,281,799    11
 b >  $5 billion -     a 1120 Consol           434       1     4,040,495     9
 < $20 billion         b 1120 MixGrp            82       0       825,370     2
                       c 1120 UnCons            44       0       415,934     1

                       All                   1,913       5     4,067,910     9
 c >  $1 billion -     a 1120 Consol         1,597       4     3,384,100     7
 < $5 billion          b 1120 MixGrp           121       0       292,138     1
                       c 1120 UnCons           195       0       391,671     1

                       All                   1,772       4     1,249,610     3
 d > $500 million -    a 1120 Consol         1,526       4     1,077,850     2
 < $1 billion          b 1120 MixGrp            39       0        28,264     0
                       c 1120 UnCons           207       0       143,495     0

                       All                   2,530       6       890,815     2
 e > $250 million -    a 1120 Consol         2,090       5       739,404     2
 < $500M               b 1120 MixGrp            34       0        12,183     0
                       c 1120 UnCons           406       1       139,227     0

                       All                   5,035      12       799,725     2
 f > $100 million -    a 1120 Consol         3,646       9       589,395     1
 < $250 million        b 1120 MixGrp            29       0         4,858     0
                       c 1120 UnCons         1,360       3       205,471     0

                       All                   5,363      13       379,330     1
 g > $50 million -     a 1120 Consol         3,027       7       216,629     0
 < $100 million        b 1120 MixGrp            16       0         1,189     0
                       c 1120 UnCons         2,320       5       161,512     0

                       All                   7,574      18       266,756     1
 h > $25 million -     a 1120 Consol         3,483       8       125,153     0
 < $50 million         b 1120 MixGrp            19       0           662     0
                       c 1120 UnCons         4,072      10       140,941     0

                       All                  17,401      41       270,916     1
 i > $10 million -     a 1120 Consol         4,779      11        78,251     0
 < $25 million         b 1120 MixGrp            15       0           268     0
                       c 1120 UnCons        12,607      30       192,397     0
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                               Tax After          Foreign Tax
                                                Credits             Credit
                                          _____________________________________

 Asset Size by Return Type                   Sum      Col%        Sum     Col%
 ______________________________________________________________________________

 All                                       266,081     100      78,183     100
 a 1120 Consol                             166,638      63      38,932      50
 b 1120 MixGrp                              80,388      30      38,561      49
 c 1120 UnCons                              19,055       7         691       1

                       All                 124,723      47      57,357      73
 a > $20 billion       a 1120 Consol        57,053      21      21,804      28
 or more               b 1120 MixGrp        65,255      25      35,553      45
                       c 1120 UnCons         2,414       1           0       0

                       All                  53,819      20      11,149      14
 b >  $5 billion -     a 1120 Consol        42,536      16       8,646      11
 < $20 billion         b 1120 MixGrp        10,233       4       2,434       3
                       c 1120 UnCons         1,051       0          70       0

                       All                  44,485      17       6,877       9
 c >  $1 billion -     a 1120 Consol        37,569      14       6,271       8
 < $5 billion          b 1120 MixGrp         4,026       2         529       1
                       c 1120 UnCons         2,890       1          77       0

                       All                  12,059       5       1,058       1
 d > $500 million -    a 1120 Consol        10,095       4         960       1
 < $1 billion          b 1120 MixGrp           560       0          18       0
                       c 1120 UnCons         1,403       1          80       0

                       All                   9,081       3         939       1
 e > $250 million -    a 1120 Consol         7,580       3         731       1
 < $500M               b 1120 MixGrp           189       0           5       0
                       c 1120 UnCons         1,312       0         202       0

                       All                   8,358       3         411       1
 f > $100 million -    a 1120 Consol         6,129       2         292       0
 < $250 million        b 1120 MixGrp            90       0           5       0
                       c 1120 UnCons         2,140       1         114       0

                       All                   4,948       2         237       0
 g > $50 million -     a 1120 Consol         2,730       1         151       0
 < $100 million        b 1120 MixGrp            26       0          17       0
                       c 1120 UnCons         2,192       1          69       0

                       All                   3,952       1         100       0
 h > $25 million -     a 1120 Consol         1,729       1          59       0
 < $50 million         b 1120 MixGrp             6       0           0       0
                       c 1120 UnCons         2,217       1          41       0

                       All                   4,655       2          55       0
 i > $10 million -     a 1120 Consol         1,216       0          18       0
 < $25 million         b 1120 MixGrp             3       0           0       0
                       c 1120 UnCons         3,436       1          38       0
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                                                   Worldwide
                                            Tax Net Income       Income (P1L4)
                                          _____________________________________

 Asset Size by Return Type                   Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                       918,438     100     804,393     100
 a 1120 Consol                             549,329      60     507,525      63
 b 1120 MixGrp                             338,551      37     298,136      37
 c 1120 UnCons                              30,558       3      -1,268       0

                       All                 523,360      57     507,455      63
 a > $20 billion       a 1120 Consol       222,783      24     244,625      30
 or more               b 1120 MixGrp       291,136      32     267,862      33
                       c 1120 UnCons         9,441       1      -5,031      -1

                       All                 181,128      20     160,169      20
 b >  $5 billion -     a 1120 Consol       144,156      16     134,448      17
 < $20 billion         b 1120 MixGrp        32,695       4      23,422       3
                       c 1120 UnCons         4,277       0       2,298       0

                       All                 138,573      15     116,778      15
 c >  $1 billion -     a 1120 Consol       121,606      13     105,047      13
 < $5 billion          b 1120 MixGrp        12,266       1       5,673       1
                       c 1120 UnCons         4,700       1       6,058       1

                       All                  31,352       3      16,666       2
 d > $500 million -    a 1120 Consol        25,784       3      14,191       2
 < $1 billion          b 1120 MixGrp         1,730       0         918       0
                       c 1120 UnCons         3,838       0       1,556       0

                       All                  20,264       2      12,549       2
 e > $250 million -    a 1120 Consol        18,529       2      11,882       1
 < $500M               b 1120 MixGrp           459       0         154       0
                       c 1120 UnCons         1,276       0         513       0

                       All                  15,925       2       3,810       0
 f > $100 million -    a 1120 Consol        12,232       1       2,890       0
 < $250 million        b 1120 MixGrp           152       0          45       0
                       c 1120 UnCons         3,541       0         875       0

                       All                   4,743       1      -2,567       0
 g > $50 million -     a 1120 Consol         2,978       0        -203       0
 < $100 million        b 1120 MixGrp           118       0          82       0
                       c 1120 UnCons         1,648       0      -2,447       0

                       All                   1,822       0      -5,152      -1
 h > $25 million -     a 1120 Consol           846       0      -3,138       0
 < $50 million         b 1120 MixGrp            -7       0         -25       0
                       c 1120 UnCons           983       0      -1,989       0

                       All                   1,270       0      -5,315      -1
 i > $10 million -     a 1120 Consol           414       0      -2,218       0
 < $25 million         b 1120 MixGrp             3       0           5       0
                       c 1120 UnCons           854       0      -3,102       0
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                             Net foreign           Net U.S.
                                            (Income) Loss       (Income) Loss
                                            removed (P1L5)      removed (P1L6)
                                          _____________________________________

 Asset Size by Return Type                    Sum     Col%       Sum      Col%
 ______________________________________________________________________________

 All                                       -487,686    100    -111,934     100
 a 1120 Consol                             -311,460     64     -44,578      40
 b 1120 MixGrp                             -174,145     36     -64,224      57
 c 1120 UnCons                               -2,080      0      -3,132       3

                       All                 -352,669     72     -78,179      70
 a > $20 billion       a 1120 Consol       -205,203     42     -18,219      16
 or more               b 1120 MixGrp       -147,467     30     -59,168      53
                       c 1120 UnCons              1      0        -793       1

                       All                  -69,371     14     -11,950      11
 b >  $5 billion -     a 1120 Consol        -46,938     10      -9,225       8
 < $20 billion         b 1120 MixGrp        -21,839      4      -2,725       2
                       c 1120 UnCons           -595      0           0       0

                       All                  -51,781     11     -15,816      14
 c >  $1 billion -     a 1120 Consol        -46,684     10     -13,294      12
 < $5 billion          b 1120 MixGrp         -4,703      1      -2,256       2
                       c 1120 UnCons           -395      0        -265       0

                       All                   -6,443      1        -956       1
 d > $500 million -    a 1120 Consol         -5,602      1        -793       1
 < $1 billion          b 1120 MixGrp            -23      0         -19       0
                       c 1120 UnCons           -818      0        -143       0

                       All                   -5,558      1      -2,388       2
 e > $250 million -    a 1120 Consol         -4,799      1      -2,055       2
 < $500M               b 1120 MixGrp            -92      0         -10       0
                       c 1120 UnCons           -666      0        -323       0

                       All                   -1,751      0         119       0
 f > $100 million -    a 1120 Consol         -1,503      0           4       0
 < $250 million        b 1120 MixGrp            -20      0          -1       0
                       c 1120 UnCons           -228      0         116       0

                       All                      279      0        -997       1
 g > $50 million -     a 1120 Consol           -396      0        -896       1
 < $100 million        b 1120 MixGrp             -2      0         -44       0
                       c 1120 UnCons            676      0         -57       0

                       All                     -320      0        -757       1
 h > $25 million -     a 1120 Consol           -323      0          -2       0
 < $50 million         b 1120 MixGrp              0      0           0       0
                       c 1120 UnCons              3      0        -755       1

                       All                      -72      0      -1,009       1
 i > $10 million -     a 1120 Consol            -13      0         -97       0
 < $25 million         b 1120 MixGrp              0      0           0       0
                       c 1120 UnCons            -59      0        -912       1
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                                Net Oth.
                                            Includable Inc.       Total Book
                                             (Loss) (P1L7)      Income (P1L11)
                                          _____________________________________

 Asset Size by Return Type                    Sum     Col%       Sum      Col%
 ______________________________________________________________________________

 All                                         11,550    100     573,171     100
 a 1120 Consol                                2,356     20     389,501      68
 b 1120 MixGrp                                9,141     79     188,984      33
 c 1120 UnCons                                   52      0      -5,313      -1

                       All                   10,891     94     368,398      64
 a > $20 billion       a 1120 Consol          1,899     16     197,457      34
 or more               b 1120 MixGrp          8,993     78     176,763      31
                       c 1120 UnCons              0      0      -5,823      -1

                       All                      417      4     122,467      21
 b >  $5 billion -     a 1120 Consol            214      2     108,763      19
 < $20 billion         b 1120 MixGrp            203      2      12,001       2
                       c 1120 UnCons              0      0       1,703       0

                       All                      380      3      76,284      13
 c >  $1 billion -     a 1120 Consol            407      4      71,621      12
 < $5 billion          b 1120 MixGrp            -42      0        -895       0
                       c 1120 UnCons             15      0       5,558       1

                       All                     -231     -2      11,049       2
 d > $500 million -    a 1120 Consol           -206     -2       9,404       2
 < $1 billion          b 1120 MixGrp            -25      0         915       0
                       c 1120 UnCons              0      0         729       0

                       All                       80      1       7,802       1
 e > $250 million -    a 1120 Consol             66      1       7,840       1
 < $500M               b 1120 MixGrp             13      0         162       0
                       c 1120 UnCons              2      0        -201       0

                       All                       23      0       2,592       0
 f > $100 million -    a 1120 Consol             25      0       1,740       0
 < $250 million        b 1120 MixGrp              0      0          26       0
                       c 1120 UnCons             -2      0         827       0

                       All                      -84     -1      -2,976      -1
 g > $50 million -     a 1120 Consol            -85     -1      -1,400       0
 < $100 million        b 1120 MixGrp              0      0          31       0
                       c 1120 UnCons              1      0      -1,607       0

                       All                        9      0      -6,139      -1
 h > $25 million -     a 1120 Consol              1      0      -3,508      -1
 < $50 million         b 1120 MixGrp              0      0         -25       0
                       c 1120 UnCons              8      0      -2,605       0

                       All                       64      1      -6,307      -1
 i > $10 million -     a 1120 Consol             36      0      -2,416       0
 < $25 million         b 1120 MixGrp              0      0           5       0
                       c 1120 UnCons             28      0      -3,895      -1

   Table 3B. U.S. Corporations With Reconciled Form 1120 Schedule M-3: 2007:
                           Asset Size by Return Type

             Dollar amounts in millions. Table amounts may not add
                           to totals due to rounding.
 ______________________________________________________________________________

                                                                   Pretax Temp
                                              Pretax Book             Diff
                                          _____________________________________

 Asset Size by Return Type                   Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                       845,410     100      53,475     100
 a 1120 Consol                             574,573      68      20,940      39
 b 1120 MixGrp                             265,634      31       6,775      13
 c 1120 UnCons                               5,203       1      25,760      48

                       All                 491,595      58       8,469      16
 a > $20 billion       a 1120 Consol       263,089      31     -10,259     -19
 or more               b 1120 MixGrp       240,283      28      -3,792      -7
                       c 1120 UnCons       -11,777      -1      22,520      42

                       All                 183,302      22      11,793      22
 b > $5 billion -      a 1120 Consol       159,827      19       2,560       5
 < $20 billion         b 1120 MixGrp        20,130       2       7,583      14
                       c 1120 UnCons         3,345       0       1,651       3

                       All                 123,981      15      10,136      19
 c > $1 billion -      a 1120 Consol       112,307      13      11,570      22
 < $5 billion          b 1120 MixGrp         3,151       0       2,555       5
                       c 1120 UnCons         8,523       1      -3,989      -7

                       All                  23,450       3       6,316      12
 d > $500 million -    a 1120 Consol        19,830       2       4,551       9
 < $1 billion          b 1120 MixGrp         1,584       0         225       0
                       c 1120 UnCons         2,036       0       1,540       3

                       All                  16,548       2       4,291       8
 e > $250 million -    a 1120 Consol        14,869       2       4,204       8
 < $500 million        b 1120 MixGrp           329       0         132       0
                       c 1120 UnCons         1,349       0         -44       0

                       All                  10,426       1       4,846       9
 f > $100 million -    a 1120 Consol         7,475       1       4,079       8
 < $250 million        b 1120 MixGrp           125       0          50       0
                       c 1120 UnCons         2,826       0         717       1

                       All                     960       0       2,695       5
 g > $50 million -     a 1120 Consol           588       0       1,524       3
 < $100 million        b 1120 MixGrp            46       0          23       0
                       c 1120 UnCons           326       0       1,148       2

                       All                  -2,719       0       2,182       4
 h > $25 million -     a 1120 Consol        -2,094       0       1,426       3
 < $50 million         b 1120 MixGrp           -21       0           8       0
                       c 1120 UnCons          -604       0         748       1

                       All                  -2,133       0       2,746       5
 i > $10 million -     a 1120 Consol        -1,319       0       1,284       2
 < $25 million         b 1120 MixGrp             7       0          -7       0
                       c 1120 UnCons          -821       0       1,469       3
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                              Pretax Perm         Tax Income
                                                 Diff              (P2L30D)
                                          _____________________________________

 Asset Size by Return Type                   Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                        85,745     100     984,630     100
 a 1120 Consol                             -11,176     -13     584,337      59
 b 1120 MixGrp                              97,161     113     369,570      38
 c 1120 UnCons                                -241       0      30,722       3

                       All                  66,837      78     566,901      58
 a > $20 billion       a 1120 Consol       -16,706     -19     236,124      24
 or more               b 1120 MixGrp        84,845      99     321,335      33
                       c 1120 UnCons        -1,301      -2       9,441       1

                       All                  -1,302      -2     193,793      20
 b > $5 billion -      a 1120 Consol        -6,002      -7     156,385      16
 < $20 billion         b 1120 MixGrp         5,301       6      33,013       3
                       c 1120 UnCons          -601      -1       4,394       0

                       All                  11,291      13     145,407      15
 c > $1 billion -      a 1120 Consol         4,151       5     128,028      13
 < $5 billion          b 1120 MixGrp         6,974       8      12,679       1
                       c 1120 UnCons           166       0       4,700       0

                       All                  2,244        3      32,011       3
 d > $500 million -    a 1120 Consol        1,971        2      26,354       3
 < $1 billion          b 1120 MixGrp           11        0       1,820       0
                       c 1120 UnCons          261        0       3,837       0

                       All                  1,526        2      22,366       2
 e > $250 million -    a 1120 Consol        1,555        2      20,629       2
 < $500 million        b 1120 MixGrp            0        0         461       0
                       c 1120 UnCons          -29        0       1,276       0

                       All                    849        1      16,121       2
 f > $100 million -    a 1120 Consol          877        1      12,431       1
 < $250 million        b 1120 MixGrp          -26        0         149       0
                       c 1120 UnCons           -2        0       3,541       0

                       All                  1,193        1       4,849       0
 g > $50 million -     a 1120 Consol          935        1       3,047       0
 < $100 million        b 1120 MixGrp           49        0         118       0
                       c 1120 UnCons          210        0       1,684       0

                       All                  2,408        3       1,871       0
 h > $25 million -     a 1120 Consol        1,560        2         892       0
 < $50 million         b 1120 MixGrp            6        0          -7       0
                       c 1120 UnCons          842        1         986       0

                       All                    699        1       1,312       0
 i > $10 million -     a 1120 Consol          483        1         448       0
 < $25 million         b 1120 MixGrp            2        0           3       0
                       c 1120 UnCons          214        0         861       0
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                            P2 Lns 1-5 Inc    P2 Lns 9-11 Inc
                                             fr Fgn Corps      fr PassThrus
                                                TotDiff            TotDiff
                                          _____________________________________

 Asset Size by Return Type                   Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                       104,893     100      37,348     100
 a 1120 Consol                              38,446      37       9,474      25
 b 1120 MixGrp                              66,685      64      30,791      82
 c 1120 UnCons                                -238       0      -2,916      -8

                       All                  66,380      63      21,114      57
 a > $20 billion       a 1120 Consol        15,074      14      -5,216     -14
 or more               b 1120 MixGrp        51,306      49      26,187      70
                       c 1120 UnCons             0       0         143       0

                       All                  12,418      12      10,473      28
 b > $5 billion -      a 1120 Consol         9,046       9       7,881      21
 < $20 billion         b 1120 MixGrp         3,353       3       2,900       8
                       c 1120 UnCons            19       0        -309      -1

                       All                  21,628      21       5,115      14
 c > $1 billion -      a 1120 Consol        10,565      10       5,775      15
 < $5 billion          b 1120 MixGrp        11,969      11       1,639       4
                       c 1120 UnCons          -907      -1      -2,299      -6

                       All                   2,096       2       1,431       4
 d > $500 million -    a 1120 Consol         1,827       2         627       2
 < $1 billion          b 1120 MixGrp            21       0          39       0
                       c 1120 UnCons           248       0         765       2

                       All                   1,275       1        -409      -1
 e > $250 million -    a 1120 Consol         1,094       1        -359      -1
 < $500 million        b 1120 MixGrp             7       0          16       0
                       c 1120 UnCons           173       0         -65       0

                       All                     483       0         -19       0
 f > $100 million -    a 1120 Consol           426       0         643       2
 < $250 million        b 1120 MixGrp             6       0          -2       0
                       c 1120 UnCons            51       0        -660      -2

                       All                     285       0        -287      -1
 g > $50 million -     a 1120 Consol           285       0        -147       0
 < $100 million        b 1120 MixGrp            23       0          11       0
                       c 1120 UnCons           -22       0        -152       0

                       All                     179       0         -13       0
 h > $25 million -     a 1120 Consol            64       0         109       0
 < $50 million         b 1120 MixGrp             0       0           0       0
                       c 1120 UnCons           115       0        -122       0

                       All                     150       0         -56       0
 i > $10 million -     a 1120 Consol            65       0         161       0
 < $25 million         b 1120 MixGrp             0       0           0       0
                       c 1120 UnCons            85       0        -218      -1
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                                P2 Ln 12         P2 Ln 25 Othr
                                            Reportbl Trans        Income Items
                                                TotDiff              TotDiff
                                          _____________________________________

 Asset Size by Return Type                   Sum      Col%        Sum     Col%
 ______________________________________________________________________________

 All                                       -21,374     100      -49,662    100
 a 1120 Consol                              -7,147      33       -5,552     11
 b 1120 MixGrp                             -11,847      55      -47,416     95
 c 1120 UnCons                              -2,380      11        3,307     -7

                       All                 -16,560      77      -37,453     75
 a > $20 billion       a 1120 Consol        -3,538      17        2,258     -5
 or more               b 1120 MixGrp       -10,791      50      -43,071     87
                       c 1120 UnCons        -2,230      10        3,359     -7

                       All                  -2,560      12        2,559     -5
 b > $5 billion -      a 1120 Consol        -2,055      10        4,770    -10
 < $20 billion         b 1120 MixGrp          -505       2       -1,751      4
                       c 1120 UnCons             0       0         -460      1

                       All                  -1,049       5      -13,015     26
 c > $1 billion -      a 1120 Consol          -422       2       -9,163     18
 < $5 billion          b 1120 MixGrp          -551       3       -2,689      5
                       c 1120 UnCons           -76       0       -1,162      2

                       All                    -251       1         -932      2
 d > $500 million -    a 1120 Consol          -251       1       -1,283      3
 < $1 billion          b 1120 MixGrp             0       0           12      0
                       c 1120 UnCons             0       0          339     -1

                       All                    -239       1         -911      2
 e > $250 million -    a 1120 Consol          -162       1         -737      1
 < $500 million        b 1120 MixGrp             0       0            4      0
                       c 1120 UnCons           -78       0         -178      0

                       All                     -11       0          360     -1
 f > $100 million -    a 1120 Consol           -16       0         -195      0
 < $250 million        b 1120 MixGrp             0       0           87      0
                       c 1120 UnCons             5       0          468     -1

                       All                       0       0          651     -1
 g > $50 million -     a 1120 Consol             0       0         -719      1
 < $100 million        b 1120 MixGrp             0       0            0      0
                       c 1120 UnCons             0       0        1,369     -3

                       All                    -701       3         -701      1
 h > $25 million -     a 1120 Consol          -701       3         -453      1
 < $50 million         b 1120 MixGrp             0       0           -6      0
                       c 1120 UnCons            -1       0         -242      0

                       All                      -3       0         -218      0
 i > $10 million -     a 1120 Consol            -2       0          -31      0
 < $25 million         b 1120 MixGrp             0       0           -2      0
                       c 1120 UnCons             0       0         -185      0
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                              P3 Lns 9-10
                                                 StkOpt          P3 Ln 35 Othr
                                                EqtyComp          Expns Items
                                                TotDiff             TotDiff
                                          _____________________________________

 Asset Size by Return Type                   Sum      Col%        Sum     Col%
 ______________________________________________________________________________

 All                                       -51,830     100      -12,923    100
 a 1120 Consol                             -39,044      75       -5,094     39
 b 1120 MixGrp                             -12,948      25      -19,163    148
 c 1120 UnCons                                 161       0       11,333    -88

                       All                 -24,291      47      -24,977    193
 a > $20 billion       a 1120 Consol       -13,867      27      -11,588     90
 or more               b 1120 MixGrp       -10,439      20      -21,229    164
                       c 1120 UnCons            16       0        7,839    -61

                       All                 -12,938      25         -155      1
 b > $5 billion -      a 1120 Consol       -10,935      21       -1,856     14
 < $20 billion         b 1120 MixGrp        -2,000       4        1,680    -13
                       c 1120 UnCons            -3       0           20      0

                       All                 -11,682      23         -237      2
 c > $1 billion -      a 1120 Consol       -11,248      22          104     -1
 < $5 billion          b 1120 MixGrp          -381       1          500     -4
                       c 1120 UnCons           -53       0         -841      7

                       All                  -1,625       3        1,533    -12
 d > $500 million -    a 1120 Consol        -1,651       3        1,564    -12
 < $1 billion          b 1120 MixGrp           -20       0         -121      1
                       c 1120 UnCons            46       0           90     -1

                       All                  -1,149       2        2,179    -17
 e > $250 million -    a 1120 Consol        -1,045       2        2,201    -17
 < $500 million        b 1120 MixGrp           -85       0           24      0
                       c 1120 UnCons           -19       0          -46      0

                       All                    -905       2        1,816    -14
 f > $100 million -    a 1120 Consol          -638       1        1,309    -10
 < $250 million        b 1120 MixGrp           -23       0          -12      0
                       c 1120 UnCons          -244       0          519     -4

                       All                     329      -1        2,323    -18
 g > $50 million -     a 1120 Consol            41       0        1,589    -12
 < $100 million        b 1120 MixGrp             0       0           -8      0
                       c 1120 UnCons           288      -1          741     -6

                       All                     299      -1        2,198    -17
 h > $25 million -     a 1120 Consol           201       0          790     -6
 < $50 million         b 1120 MixGrp             1       0            2      0
                       c 1120 UnCons            97       0        1,406    -11

                       All                     132       0        2,398    -19
 i > $10 million -     a 1120 Consol            98       0          793     -6
 < $25 million         b 1120 MixGrp             0       0            1      0
                       c 1120 UnCons            34       0        1,604    -12

   Table 4A. U.S. Corporations With Reconciled Form 1120 Schedule M-3: 2007:
                      Selected Industries by Public Status

             Dollar amounts in millions. Table amounts may not add
                           to totals due to rounding.
 ______________________________________________________________________________

                                                Returns          Total Assets
                                          _____________________________________

 Selected Industries by Public Status        Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                        42,395     100    47,344,964   100

 a. Petroleum          a SEC 10-K/Public        16       0     1,078,001     2
 Refineries            b Not Public             30       0       646,763     1

 b. Pharmaceuticals    a SEC 10-K/Public       112       0       691,548     1
                       b Not Public            182       0       183,124     0

 c. Computers/         a SEC 10-K/Public       438       1       758,865     2
 Electronics           b Not Public            768       2       233,893     0

 d. Electrical         a SEC 10-K/Public        93       0       867,872     2
 Equipment             b Not Public            389       1        90,561     0

 e. Transportation     a SEC 10-K/Public       112       0       758,951     2
 Equip                 b Not Public            654       2       559,813     1

 f. Fabr Metal/        a SEC 10-K/Public       198       0       496,580     1
 Machinery             b Not Public          1,634       4       247,977     1

 g. Food/Beverage      a SEC 10-K/Public        87       0       703,820     1
 Mfg                   b Not Public            726       2       173,441     0

 h. Other              a SEC 10-K/Public       492       1     1,302,022     3
 Manufacturing         b Not Public          3,372       8       715,649     2

 1-Total Mfg.                                9,303      22     9,508,880    20

 i. NonBank            a SEC 10-K/Public        68       0        13,960     0
 Holding Co.           b Not Public            993       2       255,360     1

 j. Bank (& Bank       a SEC 10-K/Public       982       2    12,621,071    27
 Holding Co.)          b Not Public          4,137      10     1,912,626     4

 k. Securities/        a SEC 10-K/Public       114       0     6,622,255    14
 Commodites            b Not Public            853       2     2,564,656     5

 l. Other Financial    a SEC 10-K/Public       202       0     2,778,717     6
                       b Not Public          3,884       9     1,236,513     3

 2-Total Fin/Hold                           11,233      26    28,005,158    59

 m. Trade              a SEC 10-K/Public       568       1     1,608,030     3
                       b Not Public          7,667      18     1,015,218     2

 n. Information        a SEC 10-K/Public       398       1     2,329,099     5
                       b Not Public          1,609       4       488,404     1

 o. Utilities          a SEC 10-K/Public       117       0     1,184,459     3
                       b Not Public            242       1       214,830     0

 p. Transport/         a SEC 10-K/Public       103       0       426,274     1
 Warehousing           b Not Public            941       2       164,565     0

 q. Mining             a SEC 10-K/Public       223       1       485,352     1
                       b Not Public            758       2       202,678     0

 r. Construction       a SEC 10-K/Public        68       0       120,161     0
                       b Not Public          2,319       5       127,421     0

 s. Service/Agr/Other  a SEC 10-K/Public     1,027       2       702,151     1
                       b Not Public          5,819      14       762,283     2

 3-Total Other                              21,859      52     9,830,925    21
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                               Tax After          Foreign Tax
                                                Credits             Credit
                                          _____________________________________

 Selected Industries by Public Status        Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                       266,081     100      78,183     100

 a. Petroleum          a SEC 10-K/Public    10,786       4      24,465      31
 Refineries            b Not Public          5,644       2       3,432       4

 b. Pharmaceuticals    a SEC 10-K/Public     7,224       3       2,939       4
                       b Not Public          5,016       2         370       0

 c. Computers/         a SEC 10-K/Public     8,477       3       3,699       5
 Electronics           b Not Public          1,208       0          56       0

 d. Electrical         a SEC 10-K/Public     1,021       0       2,397       3
 Equipment             b Not Public            633       0         141       0

 e. Transportation     a SEC 10-K/Public     6,443       2       2,367       3
 Equip                 b Not Public          1,583       1          94       0

 f. Fabr Metal/        a SEC 10-K/Public     5,245       2       2,060       3
 Machinery             b Not Public          3,606       1         239       0

 g. Food/Beverage      a SEC 10-K/Public     8,812       3       4,874       6
 Mfg                   b Not Public          1,962       1         313       0

 h. Other              a SEC 10-K/Public    12,210       5       7,139       9
 Manufacturing         b Not Public          8,236       3       1,488       2

 1-Total Mfg.                               88,106      33      56,073      72

 i. NonBank            a SEC 10-K/Public        49       0          14       0
 Holding Co.           b Not Public          2,191       1         317       0

 j. Bank (& Bank       a SEC 10-K/Public    23,737       9       3,394       4
 Holding Co.)          b Not Public          4,949       2           8       0

 k. Securities/        a SEC 10-K/Public     6,814       3       2,233       3
 Commodites            b Not Public          3,848       1         113       0

 l. Other Financial    a SEC 10-K/Public     8,712       3         922       1
                       b Not Public          7,927       3         280       0

 2-Total Fin/Hold                           58,227      22       7,281       9

 m. Trade              a SEC 10-K/Public    34,939      13       1,950       2
                       b Not Public         14,171       5         589       1

 n. Information        a SEC 10-K/Public    21,784       8       3,576       5
                       b Not Public          4,277       2         129       0

 o. Utilities          a SEC 10-K/Public    11,534       4         251       0
                       b Not Public            629       0           0       0

 p. Transport/         a SEC 10-K/Public     3,720       1         367       0
 Warehousing           b Not Public          1,528       1          49       0

 q. Mining             a SEC 10-K/Public     6,188       2       3,212       4
                       b Not Public          3,143       1       2,249       3

 r. Construction       a SEC 10-K/Public     1,406       1         158       0
                       b Not Public          1,957       1          21       0

 s. Service/Agr/Other  a SEC 10-K/Public     9,178       3       1,620       2
                       b Not Public          5,296       2         655       1

 3-Total Other                             119,750      45      14,826      19
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                                                   Worldwide
                                            Tax Net Income       Income (P1L4)
                                          _____________________________________

 Selected Industries by Public Status        Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                       918,438     100     804,393     100

 a. Petroleum          a SEC 10-K/Public   100,509      11      76,000       9
 Refineries            b Not Public         26,364       3      21,128       3

 b. Pharmaceuticals    a SEC 10-K/Public    33,716       4      42,107       5
                       b Not Public         15,073       2       9,106       1

 c. Computers/         a SEC 10-K/Public    37,600       4      56,674       7
 Electronics           b Not Public            484       0      -6,890      -1

 d. Electrical         a SEC 10-K/Public     9,284       1      26,830       3
 Equipment             b Not Public          2,635       0       2,791       0

 e. Transportation     a SEC 10-K/Public    26,031       3      23,254       3
 Equip                 b Not Public         -1,771       0        -745       0

 f. Fabr Metal/        a SEC 10-K/Public    22,450       2      29,161       4
 Machinery             b Not Public         11,249       1       8,116       1

 g. Food/Beverage      a SEC 10-K/Public    39,636       4      38,931       5
 Mfg                   b Not Public          5,789       1       8,436       1

 h. Other              a SEC 10-K/Public    57,386       6      70,693       9
 Manufacturing         b Not Public         23,330       3       7,173       1

 1-Total Mfg.                              409,765      45     412,765      51

 i. NonBank            a SEC 10-K/Public      -120       0      -1,292       0
 Holding Co.           b Not Public          4,816       1       5,442       1

 j. Bank (& Bank       a SEC 10-K/Public    82,170       9      66,028       8
 Holding Co.)          b Not Public         11,823       1       8,481       1

 k. Securities/        a SEC 10-K/Public    22,562       2      23,569       3
 Commodites            b Not Public         -9,259      -1       1,810       0

 l. Other Financial    a SEC 10-K/Public    22,454       2        -143       0
                       b Not Public         15,545       2         834       0

 2-Total Fin/Hold                          149,991      16     104,729      13

 m. Trade              a SEC 10-K/Public   107,623      12      85,050      11
                       b Not Public         38,510       4      26,892       3

 n. Information        a SEC 10-K/Public    78,270       9      44,125       5
                       b Not Public         12,588       1       8,524       1

 o. Utilities          a SEC 10-K/Public    39,606       4      40,394       5
                       b Not Public          1,112       0       1,206       0

 p. Transport/         a SEC 10-K/Public     7,981       1      17,123       2
 Warehousing           b Not Public          1,379       0         981       0

 q. Mining             a SEC 10-K/Public    24,347       3      33,687       4
                       b Not Public         14,065       2      20,186       3

 r. Construction       a SEC 10-K/Public    -3,450       0     -10,525      -1
                       b Not Public          4,851       1       2,587       0

 s. Service/Agr/Other  a SEC 10-K/Public    24,183       3      17,930       2
                       b Not Public          7,618       1      -1,261       0

 3-Total Other                             358,683      39     286,899      36
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                              Net foreign
                                             (Income) Loss         Net U.S.
                                               Removed          (Income) Loss
                                                (P1L5)          removed (P1L6)
                                          _____________________________________

 Selected Industries by Public Status        Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                      -487,686     100    -111,934     100

 a. Petroleum          a SEC 10-K/Public   -13,463       3      -7,979       7
 Refineries            b Not Public         -2,275       0      -4,249       4

 b. Pharmaceuticals    a SEC 10-K/Public   -50,329      10      -3,256       3
                       b Not Public            -23       0          -5       0

 c. Computers/         a SEC 10-K/Public  -158,731      33         112       0
 Electronics           b Not Public         -1,366       0        -233       0

 d. Electrical         a SEC 10-K/Public   -47,221      10      -8,744       8
 Equipment             b Not Public           -648       0         -69       0

 e. Transportation     a SEC 10-K/Public   -19,442       4        -850       1
 Equip                 b Not Public           -760       0         632      -1

 f. Fabr Metal/        a SEC 10-K/Public   -18,882       4      -2,532       2
 Machinery             b Not Public         -2,901       1      -1,854       2

 g. Food/Beverage      a SEC 10-K/Public   -22,745       5      -2,023       2
 Mfg                   b Not Public         -1,218       0        -567       1

 h. Other              a SEC 10-K/Public   -37,128       8      -7,187       6
 Manufacturing         b Not Public         -3,236       1      -1,247       1

 1-Total Mfg.                             -380,368      78     -40,051      36

 i. NonBank            a SEC 10-K/Public       476       0         531       0
 Holding Co.           b Not Public           -930       0        -761       1

 j. Bank (& Bank       a SEC 10-K/Public   -12,090       2     -37,195      33
 Holding Co.)          b Not Public            -35       0      -1,025       1

 k. Securities/        a SEC 10-K/Public   -12,122       2      -4,791       4
 Commodites            b Not Public             22       0        -153       0

 l. Other Financial    a SEC 10-K/Public    -6,362       1      -1,444       1
                       b Not Public         -3,057       1        -764       1

 2-Total Fin/Hold                          -34,098       7     -45,602      41

 m. Trade              a SEC 10-K/Public   -20,355       4      -5,470       5
                       b Not Public         -2,654       1        -600       1

 n. Information        a SEC 10-K/Public   -18,516       4      -4,913       4
                       b Not Public         -2,148       0      -1,588       1

 o. Utilities          a SEC 10-K/Public    -2,821       1      -2,289       2
                       b Not Public         -1,405       0        -849       1

 p. Transport/         a SEC 10-K/Public    -1,601       0        -410       0
 Warehousing           b Not Public            -69       0         -66       0

 q. Mining             a SEC 10-K/Public    -9,146       2      -2,423       2
                       b Not Public         -5,851       1      -3,569       3

 r. Construction       a SEC 10-K/Public      -236       0         -64       0
                       b Not Public            -67       0         -87       0

 s. Service/Agr/Other  a SEC 10-K/Public    -7,084       1      -3,512       3
                       b Not Public         -1,270       0        -439       0

 3-Total Other                             -73,223      15     -26,279      23
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                                Net Oth.
                                            Includable Inc.       Total Book
                                             (Loss) (P1L7)      Income (P1L11)
                                          _____________________________________

 Selected Industries by Public Status        Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                        11,550     100     573,171     100

 a. Petroleum          a SEC 10-K/Public     1,643      14      74,318      13
 Refineries            b Not Public          7,205      62      45,227       8

 b. Pharmaceuticals    a SEC 10-K/Public         0       0      11,234       2
                       b Not Public             10       0       8,957       2

 c. Computers/         a SEC 10-K/Public     2,740      24      38,032       7
 Electronics           b Not Public           -476      -4      -8,302      -1

 d. Electrical         a SEC 10-K/Public      -172      -1      -1,570       0
 Equipment             b Not Public              2       0       2,197       0

 e. Transportation     a SEC 10-K/Public         5       0      18,792       3
 Equip                 b Not Public           -119      -1       1,921       0

 f. Fabr Metal/        a SEC 10-K/Public        14       0      20,746       4
 Machinery             b Not Public             22       0       6,154       1

 g. Food/Beverage      a SEC 10-K/Public        -1       0      32,207       6
 Mfg                   b Not Public              0       0       7,399       1

 h. Other              a SEC 10-K/Public       150       1      53,499       9
 Manufacturing         b Not Public            -95      -1       6,341       1

 1-Total Mfg.                               10,928      95     317,152      55

 i. NonBank            a SEC 10-K/Public       -66      -1         -66       0
 Holding Co.           b Not Public              1       0       4,118       1

 j. Bank (& Bank       a SEC 10-K/Public      -389      -3      31,520       5
 Holding Co.)          b Not Public             74       1       8,180       1

 k. Securities/        a SEC 10-K/Public       179       2       7,442       1
 Commodites            b Not Public            -42       0       1,645       0

 l. Other Financial    a SEC 10-K/Public       122       1      -4,158      -1
                       b Not Public             16       0      -9,623      -2

 2-Total Fin/Hold                             -105      -1      39,058       7

 m. Trade              a SEC 10-K/Public         2       0      69,972      12
                       b Not Public            147       1      25,655       4

 n. Information        a SEC 10-K/Public        42       0      10,682       2
                       b Not Public              9       0       4,942       1

 o. Utilities          a SEC 10-K/Public        -5       0      39,185       7
                       b Not Public            524       5        -260       0

 p. Transport/         a SEC 10-K/Public         0       0      14,823       3
 Warehousing           b Not Public            -19       0         933       0

 q. Mining             a SEC 10-K/Public       131       1      38,848       7
                       b Not Public             -1       0      13,146       2

 r. Construction       a SEC 10-K/Public         1       0     -10,567      -2
                       b Not Public             -6       0       2,298       0

 s. Service/Agr/Other  a SEC 10-K/Public       -33       0       9,889       2
                       b Not Public            -70      -1      -2,586      -1

 3-Total Other                                 722       6     216,960      38

   Table 4B. U.S. Corporations With Reconciled Form 1120 Schedule M-3: 2007:
                      Selected Industries by Public Status

             Dollar amounts in millions. Table amounts may not add
                           to totals due to rounding.
 ______________________________________________________________________________

                                                                    Pretax Temp
                                                  Pretax Book          Diff
                                                 ______________________________

 Selected Industries by Public Status             Sum     Col%     Sum     Col%
 ______________________________________________________________________________

 All                                             845,410   100    53,475    100

 a. Petroleum Refineries    a SEC 10-K/Public     85,973    10   -12,491    -23
                            b Not Public          50,199     6    10,235     19

 b. Pharmaceuticals         a SEC 10-K/Public     18,413     2    13,297     25
                            b Not Public          14,503     2     2,710      5

 c. Computers/Electronics   a SEC 10-K/Public     51,611     6     2,431      5
                            b Not Public          -8,239    -1     4,387      8

 d. Electrical Equipment    a SEC 10-K/Public     -1,580     0       663      1
                            b Not Public           2,831     0       591      1

 e. Transportation Equip    a SEC 10-K/Public     25,599     3     3,212      6
                            b Not Public           6,971     1   -15,550    -29

 f. Fabr Metal/Machinery    a SEC 10-K/Public     26,503     3       370      1
                            b Not Public          10,064     1     1,156      2

 g. Food/Beverage Mfg       a SEC 10-K/Public     41,724     5     3,479      7
                            b Not Public           9,234     1       207      0

 h. Other Manufacturing     a SEC 10-K/Public     70,738     8     2,564      5
                            b Not Public          13,216     2     5,314     10

 1-Total Mfg.                                    417,760    49    22,575     42

 i. NonBank Holding Co      a SEC 10-K/Public          1     0      -130      0
                            b Not Public           6,415     1    -2,900     -5

 j. Bank (& Bank Holding    a SEC 10-K/Public     46,877     6    20,602     39
    Co)                     b Not Public          12,056     1      -132      0

 k. Securities/Commodites   a SEC 10-K/Public     13,681     2    11,604     22
                            b Not Public           3,840     0    -9,231    -17

 l. Other Financial         a SEC 10-K/Public     -6,308    -1    36,194     68
                            b Not Public          -2,534     0     6,944     13

 2-Total Fin/Hold                                 74,028     9    62,951    118

 m. Trade                   a SEC 10-K/Public    103,382    12     3,824      7
                            b Not Public          38,868     5     2,747      5

 n. Information             a SEC 10-K/Public     38,644     5   -13,268    -25
                            Not Public             9,407     1     5,234     10

 o. Utilities               a SEC 10-K/Public     53,900     6    -6,478    -12
                            b Not Public             245     0    -2,613     -5

 p. Transport/Warehousing   a SEC 10-K/Public     21,794     3   -16,100    -30
                            b Not Public           2,850     0    -1,226     -2

 q. Mining                  a SEC 10-K/Public     51,000     6   -17,278    -32
                            b Not Public          18,639     2    -1,857     -3

 r. Construction            a SEC 10-K/Public    -10,812    -1     7,414     14
                            b Not Public           3,566     0     1,203      2

 s. Service/Agr/Other       a SEC 10-K/Public     20,669     2       921      2
                            b Not Public           1,469     0     5,423     11

 3-Total Other                                   353,621    42   -32,054    -60
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                                                    Tax Income
                                                  Pretax Temp        (Part II
                                                      Diff            Ln 30D)
                                                 ______________________________

 Selected Industries by Public Status             Sum     Col%     Sum     Col%
 ______________________________________________________________________________

 All                                              85,745   100   984,630    100

 a. Petroleum Refineries    a SEC 10-K/Public     27,027    32   100,509     10
                            b Not Public         -34,071   -40    26,364      3

 b. Pharmaceuticals         a SEC 10-K/Public      1,489     2    33,199      3
                            b Not Public          -1,959    -2    15,253      2

 c. Computers/Electronics   a SEC 10-K/Public    -15,384   -18    38,657      4
                            b Not Public           4,507     5       655      0

 d. Electrical Equipment    a SEC 10-K/Public     10,330    12     9,413      1
                            b Not Public            -760    -1     2,662      0

 e. Transportation Equip    a SEC 10-K/Public     -1,314    -2    27,497      3
                            b Not Public           6,853     8    -1,727      0

 f. Fabr Metal/Machinery    a SEC 10-K/Public     -3,651    -4    23,222      2
                            b Not Public             431     1    11,652      1

 g. Food/Beverage Mfg       a SEC 10-K/Public     -1,028    -1    44,175      4
                            b Not Public          -3,614    -4     5,827      1

 h. Other Manufacturing     a SEC 10-K/Public    -11,571   -13    61,731      6
                            b Not Public           6,092     7    24,622      3

 1-Total Mfg.                                    -16,623   -19   423,711     43

 i. NonBank Holding Co      a SEC 10-K/Public          9     0      -120      0
                            b Not Public           1,492     2     5,008      1

 j. Bank (& Bank Holding    a SEC 10-K/Public     38,807    45   106,286     11
    Co)                     b Not Public          -2,294    -3     9,630      1

 k. Securities/Commodites   a SEC 10-K/Public       -618    -1    24,668      3
                            b Not Public          -3,064    -4    -8,456     -1

 l. Other Financial         a SEC 10-K/Public       -320     0    29,565      3
                            b Not Public          13,096    15    17,506      2

 2-Total Fin/Hold                                 47,108    55   184,087     19

 m. Trade                   a SEC 10-K/Public      2,810     3   110,016     11
                            b Not Public          -1,270    -1    40,346      4

 n. Information             a SEC 10-K/Public     54,562    64    79,938      8
                            Not Public            -2,054    -2    12,588      1

 o. Utilities               a SEC 10-K/Public     -7,815    -9    39,607      4
                            b Not Public           3,486     4     1,118      0

 p. Transport/Warehousing   a SEC 10-K/Public      2,456     3     8,151      1
                            b Not Public             -89     0     1,535      0

 q. Mining                  a SEC 10-K/Public      3,629     4    37,352      4
                            b Not Public          -2,644    -3    14,138      1

 r. Construction            a SEC 10-K/Public       -103     0    -3,501      0
                            b Not Public              50     0     4,819      0

 s. Service/Agr/Other       a SEC 10-K/Public      1,063     1    22,653      2
                            b Not Public           1,180     1     8,072      1

 3-Total Other                                    55,261    64   376,832     38
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                                                       P2 Lns
                                                 P2 Lns 1-5 Inc       9-11 Inc
                                                 fr Fgn Corps      fr PassThrus
                                                     TotDiff          TotDiff
                                                 ______________________________

 Selected Industries by Public Status             Sum     Col%     Sum     Col%
 ______________________________________________________________________________

 All                                             104,893   100    37,348    100

 a. Petroleum Refineries    a SEC 10-K/Public     16,216    15     1,341      4
                            b Not Public           1,436     1     3,107      8

 b. Pharmaceuticals         a SEC 10-K/Public      2,801     3     1,788      5
                            b Not Public            -257     0       917      2

 c. Computers/Electronics   a SEC 10-K/Public     -5,640    -5       230      1
                            b Not Public             410     0       681      2

 d. Electrical Equipment    a SEC 10-K/Public     10,882    10     7,895     21
                            b Not Public             194     0        96      0

 e. Transportation Equip    a SEC 10-K/Public      4,663     4     2,995      8
                            b Not Public             751     1       608      2

 f. Fabr Metal/Machinery    a SEC 10-K/Public      2,248     2       743      2
                            b Not Public             222     0       511      1

 g. Food/Beverage Mfg       a SEC 10-K/Public      5,083     5     2,222      6
                            b Not Public             280     0       -14      0

 h. Other Manufacturing     a SEC 10-K/Public     12,722    12     4,540     12
                            b Not Public           1,516     1     1,414      4

 1-Total Mfg.                                     53,527    51    29,074     78

 i. NonBank Holding Co      a SEC 10-K/Public        -41     0      -229     -1
                            b Not Public            -671    -1    -1,496     -4

 j. Bank (& Bank Holding    a SEC 10-K/Public     12,151    12    10,717     29
    Co)                     b Not Public              18     0       -26      0

 k. Securities/Commodites   a SEC 10-K/Public      9,817     9     4,043     11
                            b Not Public             359     0   -11,261    -30

 l. Other Financial         a SEC 10-K/Public      2,433     2       793      2
                            b Not Public          11,580    11       729      2

 2-Total Fin/Hold                                 35,646    34     3,270      9

 m. Trade                   a SEC 10-K/Public      1,604     2     1,281      3
                            b Not Public          -3,594    -3     2,068      6

 n. Information             a SEC 10-K/Public      4,340     4      -698     -2
                            Not Public               317     0       135      0

 o. Utilities               a SEC 10-K/Public      1,188     1      -685     -2
                            b Not Public              18     0       303     -1

 p. Transport/Warehousing   a SEC 10-K/Public        202     0       -45      0
                            b Not Public              10     0       875     -2

 q. Mining                  a SEC 10-K/Public      7,074     7       524      1
                            b Not Public             337     0      -591     -2

 r. Construction            a SEC 10-K/Public        656     1     1,127      3
                            b Not Public              23     0        14      0

 s. Service/Agr/Other       a SEC 10-K/Public      1,880     2     2,595      7
                            b Not Public           1,670     2       458      1

 3-Total Other                                    15,725    15     5,005     13
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                                    P2 Ln 12      P2 Ln 25 Othr
                                                 Reportbl Trans    Income Items
                                                     TotDiff         TotDiff
                                                 ______________________________

 Selected Industries by Public Status             Sum     Col%     Sum     Col%
 ______________________________________________________________________________

 All                                             -21,374   100   -49,662    100

 a. Petroleum Refineries    a SEC 10-K/Public     -2,041    10    -3,492      7
                            b Not Public            -128     1      -197      0

 b. Pharmaceuticals         a SEC 10-K/Public          0     0    -7,736     16
                            b Not Public               0     0      -229      0

 c. Computers/Electronics   a SEC 10-K/Public       -217     1      -707      1
                            b Not Public              -3     0       346     -1

 d. Electrical Equipment    a SEC 10-K/Public     -2,490    12    -1,566      3
                            b Not Public               0     0    -1,656      3

 e. Transportation Equip    a SEC 10-K/Public       -186     1    -1,303      3
                            b Not Public            -236     1   -32,844     66

 f. Fabr Metal/Machinery    a SEC 10-K/Public       -355     2      -599      1
                            b Not Public              -8     0       296     -1

 g. Food/Beverage Mfg       a SEC 10-K/Public       -586     3    -1,675      3
                            b Not Public            -100     0      -417      1

 h. Other Manufacturing     a SEC 10-K/Public     -3,022    14      -677      1
                            b Not Public            -162     1    -2,151      4

 1-Total Mfg.                                     -9,534    45   -54,607    110

 i. NonBank Holding Co      a SEC 10-K/Public          0     0        60      0
                            b Not Public            -736     3      -546      1

 j. Bank (& Bank Holding    a SEC 10-K/Public       -771     4     1,260     -3
    Co)                     b Not Public              66     0       345     -1

 k. Securities/Commodites   a SEC 10-K/Public     -1,503     7      -486      1
                            b Not Public            -150     1       808     -2

 l. Other Financial         a SEC 10-K/Public     -2,237    10     3,370     -7
                            b Not Public            -341     2       243      0

 2-Total Fin/Hold                                 -5,672    27     5,054    -10

 m. Trade                   a SEC 10-K/Public     -1,646     8       946     -2
                            b Not Public            -521     2     4,911    -10

 n. Information             a SEC 10-K/Public     -2,337    11   -11,777     24
                            Not Public               -96     0    -1,332      3

 o. Utilities               a SEC 10-K/Public       -800     4     7,729    -16
                            b Not Public              70     0    -1,866      4

 p. Transport/Warehousing   a SEC 10-K/Public        -57     0     2,299     -5
                            b Not Public               0     0      -833      2

 q. Mining                  a SEC 10-K/Public       -364     2     1,058     -2
                            b Not Public               0     0    -1,198      2

 r. Construction            a SEC 10-K/Public        -30     0       502     -1
                            b Not Public              -1     0      -372      1

 s. Service/Agr/Other       a SEC 10-K/Public        -56     0       110      0
                            b Not Public            -332     2      -289      0

 3-Total Other                                    -6,170    29      -112      0
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                                  P3 Lns 9-10
                                                     StkOpt       P3 Ln 35 Othr
                                                    EqtyComp        Expns Items
                                                     TotDiff          TotDiff
                                                 ______________________________

 Selected Industries by Public Status             Sum     Col%     Sum     Col%
 ______________________________________________________________________________

 All                                             -51,830   100   -12,923    100

 a. Petroleum Refineries    a SEC 10-K/Public     -2,692     5    -1,639     13
                            b Not Public            -337     1    -1,399     11

 b. Pharmaceuticals         a SEC 10-K/Public       -127     0    10,932    -85
                            b Not Public            -995     2     1,205     -9

 c. Computers/Electronics   a SEC 10-K/Public     -7,115    14    -1,790     14
                            b Not Public             -67     0     1,151     -9

 d. Electrical Equipment    a SEC 10-K/Public       -321     1       188     -1
                            b Not Public            -125     0       443     -3

 e. Transportation Equip    a SEC 10-K/Public     -1,173     2      -336      3
                            b Not Public            -355     1    -1,325     10

 f. Fabr Metal/Machinery    a SEC 10-K/Public     -1,820     4      -359      3
                            b Not Public             -65     0      -141      1

 g. Food/Beverage Mfg       a SEC 10-K/Public     -1,348     3    -1,144      9
                            b Not Public             -60     0       193     -1

 h. Other Manufacturing     a SEC 10-K/Public     -4,698     9    -1,159      9
                            b Not Public            -431     1     2,338    -18

 1-Total Mfg.                                    -21,729    42     7,158    -55

 i. NonBank Holding Co      a SEC 10-K/Public         62     0        77     -1
                            b Not Public             -17     0       377     -3

 j. Bank (& Bank Holding    a SEC 10-K/Public     -3,729     7     3,061    -24
    Co)                     b Not Public            -184     0        39      0

 k. Securities/Commodites   a SEC 10-K/Public     -3,065     6      -630      5
                            b Not Public          -1,325     3       596     -5

 l. Other Financial         a SEC 10-K/Public       -620     1     6,446    -50
                            b Not Public            -362     1     5,042    -39

 2-Total Fin/Hold                                 -9,240    18    15,008    116

 m. Trade                   a SEC 10-K/Public     -3,535     7    -3,372     26
                            b Not Public            -741     1     3,897    -30

 n. Information             a SEC 10-K/Public     -6,719    13    -4,263     33
                            Not Public              -115     0       691     -5

 o. Utilities               a SEC 10-K/Public     -2,031     4   -12,154     94
                            b Not Public              -6     0     2,871    -22

 p. Transport/Warehousing   a SEC 10-K/Public     -1,054     2    -3,593     28
                            b Not Public            -100     0       248     -2

 q. Mining                  a SEC 10-K/Public     -1,208     2   -21,544    167
                            b Not Public            -345     1    -2,980     23

 r. Construction            a SEC 10-K/Public       -214     0        43      0
                            b Not Public             -43     0       271     -2

 s. Service/Agr/Other       a SEC 10-K/Public     -4,188     8     1,312    -10
                            b Not Public            -561     1     3,482    -27

 3-Total Other                                   -20,860    40   -35,091    272

   Table 5A. U.S. Corporations With Reconciled Form 1120 Schedule M-3: 2007:
                     Stock Options and Equity Compensation

             Dollar amounts in millions. Table amounts may not add
                           to totals due to rounding.
 ______________________________________________________________________________

                                                Returns          Total Assets
                                          _____________________________________
 Stock Options and Equity
 Compensation                                Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                        42,395     100    47,344,964   100

                       All                  35,345      83    11,259,823    24
 L09 Stock Optns = 0   f Ln9 Zero           35,345      83    11,259,823    24

                       All                   2,144       5     4,939,765    10
 b Ln9C = 0            f Ln9C = 0            2,144       5     4,939,765    10

                       All                   2,394       6     1,714,604     4
 c Ln9C > 0            f Ln9C > 0            2,394       6     1,714,604     4

                       All                     250       1    21,423,571    45
 d Top 250, Ln9C < 0   a 001-010                10       0     5,247,828    11
                       a 011-050                40       0     9,902,643    21
                       a 051-100                50       0     2,492,845     5
                       a 101-250               150       0     3,780,254     8

                       All                   2,262       5     8,007,201    17
 e 251 +up, Ln9C < 0   b 251 +up             2,262       5     8,007,201    17

 a L09C > 0                                  2,394       6     1,714,604     4

 b L09C = 0                                 37,489      88    16,199,589    34

 c 0 < L09C < -1m                            1,023       2     1,346,281     3

 d -1m  < L09D < -10m                          814       2     2,781,576     6

 e L09C  < -10m                                676       2    25,302,914    53

 a L09D > 0                                 37,990      90    12,794,705    27

 c 0 < L09D < -1m                            2,072       5     1,440,454     3

 d -1m = L09D < -10m                         1,331       3     4,337,060     9

 e L09D < = -10m                             1,002       2    28,772,745    61

 a L10C = 0                                 40,797      96    21,201,120    45

 a L10C > 0                                    741       2     4,006,920     8

 c 0 < L10C < -1m                              438       1     1,544,489     3

 d -1m = L10C < -10m                           281       1     2,640,368     6

 e L10C  < -10m                                137       0    17,952,067    38

 b L10D > 0                                 40,493      96    16,987,143    36

 c 0 < L10D < -1m                              859       2     1,873,268     4

 d -1m < L10D < -10m                           660       2     2,518,229     5

 e L10D  < -10m                                383       1    25,966,325    55
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                               Tax After         Foreign Tax
                                                Credits             Credit
                                          _____________________________________
 Stock Options and Equity
 Compensation                                Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                       266,081     100      78,183     100

                       All                  68,171      26      10,141      13
 L09 Stock Optns = 0   f Ln9 Zero           68,171      26      10,141      13

                       All                  25,396      10       5,997       8
 b Ln9C = 0            f Ln9C = 0           25,396      10       5,997       8

                       All                  12,315       5       3,618       5
 c Ln9C > 0            f Ln9C > 0           12,315       5       3,618       5

                       All                  94,854      36      48,874      63
 d Top 250, Ln9C < 0   a 001-010            13,321       5      19,579      25
                       a 011-050            25,390      10      20,947      27
                       a 051-100            17,661       7       3,021       4
                       a 101-250            38,483      14       5,327       7

                       All                  65,344      25       9,553      12
 e 251 +up, Ln9C < 0   b 251 +up            65,344      25       9,553      12

 a L09C > 0                                 12,315       5       3,618       5

 b L09C = 0                                 93,568      35      16,138      21

 c 0 < L09C < -1m                            7,817       3       1,187       2

 d -1m  < L09D < -10m                       23,495       9       3,740       5

 e L09C  < -10m                            128,886      48      53,500      68

 a L09D > 0                                 76,974      29      11,690      15

 c 0 < L09D < -1m                            8,862       3         392       1

 d -1m = L09D < -10m                        23,567       9       2,625       3

 e L09D < = -10m                           156,678      59      63,476      81

 a L10C = 0                                142,200      53      26,496      34

 a L10C > 0                                 27,513      10       9,631      12

 c 0 < L10C < -1m                           12,597       5       1,994       3

 d -1m = L10C < -10m                        31,059      12       3,144       4

 e L10C  < -10m                             52,712      20      36,919      47

 b L10D > 0                                117,023      44      18,447      24

 c 0 < L10D < -1m                           13,607       5       2,173       3

 d -1m < L10D < -10m                        27,870      10       3,401       4

 e L10D  < -10m                            107,582      40      54,162      69
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                                                   Worldwide
                                            Tax Net Income       Income (P1L4)
                                          _____________________________________
 Stock Options and Equity
 Compensation                                Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                       918,438     100     804,393     100

                       All                 172,623      19     117,256      15
 L09 Stock Optns = 0   f Ln9 Zero          172,623      19     117,256      15

                       All                  75,665       8      75,575       9
 b Ln9C = 0            f Ln9C = 0           75,665       8      75,575       9

                       All                  37,047       4      -8,223      -1
 c Ln9C > 0            f Ln9C > 0           37,047       4      -8,223      -1

                       All                 412,445      45     431,992      54
 d Top 250, Ln9C < 0   a 001-010            98,072      11      97,522      12
                       a 011-050           123,351      13     150,258      19
                       a 051-100            64,726       7      69,331       9
                       a 101-250           126,295      14     114,880      14

                       All                 220,658      24     187,793      23
 e 251 +up, Ln9C < 0   b 251 +up           220,658      24     187,793      23

 a L09C > 0                                 37,047       4      -8,223      -1

 b L09C = 0                                248,288      27     192,831      24

 c 0 < L09C < -1m                           19,771       2      18,462       2

 d -1m  < L09D < -10m                       82,168       9      60,250       7

 e L09C  < -10m                            531,163      58     541,072      67

 a L09D > 0                                185,713      20     127,255      16

 c 0 < L09D < -1m                           15,392       2       7,940       1

 d -1m = L09D < -10m                        75,527       8      34,519       4

 e L09D < = -10m                           641,805      70     634,678      79

 a L10C = 0                                423,803      46     351,482      44

 a L10C > 0                                105,542      11     111,635      14

 c 0 < L10C < -1m                           28,697       3      24,733       3

 d -1m = L10C < -10m                       100,760      11      94,238      12

 e L10C  < -10m                            259,637      28     222,304      28

 b L10D > 0                                327,804      36     258,960      32

 c 0 < L10D < -1m                           36,430       4      16,778       2

 d -1m < L10D < -10m                        91,984      10      68,847       9

 e L10D  < -10m                            462,219      50     459,807      57
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                             Net foreign            Net US
                                            (Income) Loss       (Income) Loss
                                            removed (P1L5)      removed (P1L6)
                                          _____________________________________
 Stock Options and Equity
 Compensation                                Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                      -487,686     100    -111,934     100

                       All                 -17,066       3     -17,836      16
 L09 Stock Optns = 0   f Ln9 Zero          -17,066       3     -17,836      16

                       All                 -42,134       9      -7,334       7
 b Ln9C = 0            f Ln9C = 0          -42,134       9      -7,334       7

                       All                 -22,452       5      -8,285       7
 c Ln9C > 0            f Ln9C > 0          -22,452       5      -8,285       7

                       All                -307,231      63     -58,444      52
 d Top 250, Ln9C < 0   a 001-010          -122,947      25     -22,717      20
                       a 011-050          -115,442      24     -12,013      11
                       a 051-100           -36,636       8     -11,554      10
                       a 101-250           -32,207       7     -12,161      11

                       All                 -98,803      20     -20,035      18
 e 251 +up, Ln9C < 0   b 251 +up           -98,803      20     -20,035      18

 a L09C > 0                                -22,452       5      -8,285       7

 b L09C = 0                                -59,199      12     -25,169      22

 c 0 < L09C < -1m                          -38,119       8      -2,935       3

 d -1m  < L09D < -10m                      -20,103       4         574      -1

 e L09C  < -10m                           -347,813      71     -76,119      68

 a L09D > 0                                -39,761       8     -18,893      17

 c 0 < L09D < -1m                           -6,516       1      -8,667       8

 d -1m = L09D < -10m                       -11,615       2      -1,562       1

 e L09D < = -10m                          -429,795      88     -82,812      74

 a L10C = 0                               -173,927      36     -38,227      34

 a L10C > 0                                -97,923      20     -20,568      18

 c 0 < L10C < -1m                          -14,270       3       4,342      -4

 d -1m = L10C < -10m                       -25,939       5     -10,393       9

 e L10C  < -10m                           -175,628      36     -47,088      42

 b L10D > 0                               -102,908      21     -37,204      33

 c 0 < L10D < -1m                          -13,632       3      -1,691       2

 d -1m < L10D < -10m                       -27,874       6      -1,629       1

 e L10D  < -10m                           -343,273      70     -71,409      64

 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                               Net Oth.
                                             Includable Inc.      Total Book
                                             (Loss) (P1L7)      Income (P1L11)
                                          _____________________________________
 Stock Options and Equity
 Compensation                                Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                        11,550     100     573,171     100

                       All                     310       3      93,028      16
 L09 Stock Optns = 0   f Ln9 Zero              310       3      93,028      16

                       All                     115       1      52,013       9
 b Ln9C = 0            f Ln9C = 0              115       1      52,013       9

                       All                   2,514      22     -42,609      -7
 c Ln9C > 0            f Ln9C > 0            2,514      22     -42,609      -7

                       All                   8,104      70     319,619      56
 d Top 250, Ln9C < 0   a 001-010                -3       0      76,941      13
                       a 011-050             1,318      11      66,864      12
                       a 051-100              -509      -4      41,633       7
                       a 101-250             7,298      63     134,181      23

                       All                     507       4     151,119      26
 e 251 +up, Ln9C < 0   b 251 +up               507       4     151,119      26

 a L09C > 0                                  2,514      22     -42,609      -7

 b L09C = 0                                    426       4     145,041      25

 c 0 < L09C < -1m                              -37       0      11,809       2

 d -1m  < L09D < -10m                          328       3      47,175       8

 e L09C  < -10m                              8,320      72     411,755      72

 a L09D > 0                                  2,783      24      92,228      16

 c 0 < L09D < -1m                              -71      -1       1,747       0

 d -1m = L09D < -10m                           467       4      30,124       5

 e L09D  < -10m                              8,371      72     449,071      78

 a L10C = 0                                  7,806      68     287,320      50

 a L10C > 0                                    134       1      44,851       8

 c 0 < L10C < -1m                            2,458      21      17,251       3

 d -1m = L10C < -10m                            48       0      80,121      14

 e L10C  < -10m                              1,104      10     143,628      25

 b L10D > 0                                    337       3     193,737      34

 c 0 < L10D < -1m                            2,386      21       9,285       2

 d -1m < L10D < -10m                           593       5      49,375       9

 e L10D  < -10m                              8,235      71     320,774      56

      Table 5B. U.S. Corporations With Reconciled Form 1120 Schedule M-3:
                  2007: Stock Options and Equity Compensation

        Dollar amounts in millions. Table amounts may not add to totals
                                due to rounding.
 ______________________________________________________________________________

                                               Pretax Book     Pretax Temp diff
                                          _____________________________________
 Stock Options and Equity
 Compensation                               Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                       845,410     100     53,475      100

                      All                  158,710      19     11,248       21
 L09 Stock Optns = 0
                      f Ln9 Zero           158,710      19     11,248       21

                      All                   76,978       9     -4,100       -8
 b Ln9C = 0
                      f Ln9C = 0            76,978       9     -4,100       -8

                      All                  -34,268      -4     21,076       39
 c Ln9C > 0
                      f Ln9C > 0           -34,268      -4     21,076       39

                      All                  420,866      50      7,051       13

                      a 001-010             94,978      11     -1,371       -3

 d Top 250, Ln9C < 0  a 011-050             88,577      10      1,339        3

                      a 051-100             63,954       8      6,370       12

                      a 101-250            173,357      21        714        1

                      All                  223,123      26     18,200       34
 c 251 +up, Ln9C < 0
                      b 251 +up            223,123      26     18,200       34

 a L09C > 0                                -34,268      -4     21,076       39

 b L09C = 0                                235,689      28      7,148       13

 c 0 < L09C < -1m                           20,779       2      2,265        4

 d -1m = L09C < -10m                        69,140       8     19,606       37

 e L09C  < -10m                            554,070      66      3,381        6

 a L09D  > 0                               166,602      20     14,145       26

 c 0  < L09D < -1m                          10,101       1      7,168       13

 d -1m  < L09D < -10m                       42,130       5     44,707       84

 e L09D  < -10m                            626,577      74    -12,546      -23

 a L10C = 0                                431,223      51     40,579       76

 a L10C > 0                                 68,011       8     22,806       43

 c 0 L10C < -1m                             31,785       4     -2,987       -6

 d -1m   < L10C < -10m                     116,180      14     -3,703       -7

 e L10C < -10m                             198,211      23     -3,220       -6

 b L10D  > 0                               312,191      37     38,596       72

 c 0 < L10D < -1m                           26,771       3     -3,816       -7

 d -1m< -10m                                79,751       9     12,882       24

 e L10D  < -10m                            426,697      50      5,813       11
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                               Pretax Perm     Tax Income
                                                   Diff        (P2L30D)
                                             __________________________________
 Stock Options and Equity
 Compensation                                Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                       85,745      100    984,630      100
                      All
 L09 Stock Optns = 0                        9,463       11    179,421       18
                      f Ln9 Zero            9,463       11    179,421       18

                      All                  12,343       14     85,220        9
 b Ln9C = 0
                      f Ln9C = 0           12,343       14     85,220        9

                      All                  51,385       60     38,192        4
 c Ln9C > 0
                      f Ln9C > 0           51,385       60     38,192        4

                      All                  22,964       27    450,882       46

                      a 001-010            25,342       30    118,950       12

 d Top 250, Ln9C < 0  a 011-050            36,096       42    126,012       13

                      a 051-100            -5,122       -6     65,202        7

                      a 101-250           -33,353      -39    140,718       14

                      All                 -10,410      -12    230,914       23
 c 251 +up, Ln9C < 0
                      b 251 +up           -10,410      -12    230,914       23

 a L09C > 0                                51,385       60     38,192        4

 b L09C = 0                                21,806       25    264,641       27

 c 0 < L09C < -1m                          -1,227       -1     21,817        2

 d -1m = L09C < -10m                       -4,815       -6     83,931        9

 e L09C  < -10m                            18,596       22    576,048       59

 a L09D  > 0                               12,908       15    193,655       20

 c 0  < L09D < -1m                         -1,204       -1     16,067        2

 d -1m  < L09D < -10m                      -7,785       -9     79,051        8

 e L09D  < -10m                            81,826       95    695,857       71

 a L10C = 0                               -11,496      -13    460,305       47

 a L10C > 0                                17,747       21    108,564       11

 c 0 L10C < -1m                             1,711        2     30,509        3

 d -1m   < L10C < -10m                    -12,386      -14    100,092       10

 e L10C < -10m                             90,169      105    285,160       29

 b L10D  > 0                                4,413        5    355,199       36

 c 0 < L10D < -1m                          14,210       17     37,166        4

 d -1m< -10m                                2,790        3     95,424       10

 e L10D  < -10m                            64,332       75    496,841       50
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                             P2 Lns 1-5 Inc   P2 Lns 9-11 Inc
                                             fr Fgn Corps     fr Pass Thrus
                                             TotDiff          TotDiff
                                          _____________________________________
 Stock Options and Equity
 Compensation                                Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                        104,893    100     37,348      100
                       All                   20,968     20      7,035       19
 L09 Stock Optns = 0
                       f Ln9 Zero            20,968     20      7,035       19

                       All                    7,154      7      3,518        9
 b Ln9C = 0
                       f Ln9C = 0             7,154      7      3,518        9

                       All                    6,312      6      3,945       11
 c Ln9C > 0
                       f Ln9C > 0             6,312      6      3,945       11

                       All                   55,729     53     11,189       30

                       a 001-010             -1,953     -2     11,378       30

 d Top 250, Ln9C < 0   a 011-050             44,517     42     -9,448      -25

                       a 051-100              2,309      2      5,364       14

                       a 101-250             10,856     10      3,896       10

                       All                   14,730     14     11,661       31
 c 251 +up, Ln9C < 0
                       b 251 +up             14,730     14     11,661       31

 a L09C > 0                                   6,312      6      3,945       11

 b L09C = 0                                  28,122     27     10,553       28

 c 0 < L09C < -1m                             1,479      1      1,575        4

 d -1m = L09C < -10m                          5,451      5      6,258       17

 e L09C  < -10m                              63,530     61     15,017       40

 a L09D  > 0                                 26,025     25      7,928       21

 c 0  < L09D < -1m                            1,149      1      2,124        6

 d -1m  < L09D < -10m                         4,476      4      4,779       13

 e L09D  < -10m                              73,243     70     22,518       60

 a L10C = 0                                  44,592     43     19,638       53

 a L10C > 0                                  22,123     21     13,342       36

 c 0 L10C < -1m                               3,711      4    -11,846      -32

 d -1m   < L10C < -10m                        4,704      4      3,507        9

 e L10C < -10m                               29,763     28     12,707       34

 b L10D  > 0                                 37,537     36     13,826       37

 c 0 < L10D < -1m                             4,991      5      1,919        5

 d -1m< -10m                                  5,750      5      4,856       13

 e L10D  < -10m                              56,616     54     16,747       45
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                             P2 Lns 12   P2 Ln 25 Othr
                                             Reportbl    Income Items
                                             TotDiff     TotDiff
                                          _____________________________________
 Stock Options and Equity
 Compensation                                Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                      -21,374      100    -49,662     100

                      All                  -2,539       12     -9,289      19
 L09 Stock Optns = 0
                      f Ln9 Zero           -2,539       12     -9,289      19

                      All                  -2,532       12    -17,225      35
 b Ln9C = 0
                      f Ln9C = 0           -2,532       12    -17,225      35

                      All                    -529        2     -2,110       4
 c Ln9C > 0
                      f Ln9C > 0             -529        2     -2,110       4

                      All                 -10,652       50     -9,839      20

                      a 001-010               488       -2     -1,959       4

 d Top 250, Ln9C < 0  a 011-050            -9,233       43     -6,911      14

                      a 051-100              -123        1     -3,053       6

                      a 101-250            -1,784        8      2,083      -4

                      All                  -5,122       24    -11,198      23
 c 251 +up, Ln9C < 0
                      b 251 +up            -5,122       24    -11,198      23

 a L09C > 0                                  -529        2     -2,110       4

 b L09C = 0                                -5,072       24    -26,514      53

 c 0 < L09C < -1m                            -992        5         37       0

 d -1m = L09C < -10m                       -2,462       12     -4,468       9

 e L09C  < -10m                           -12,320       58    -16,607      33

 a L09D  > 0                               -2,868       13    -11,625      23

 c 0  < L09D < -1m                           -431        2         52       0

 d -1m  < L09D < -10m                      -2,515       12      3,038      -6

 e L09D  < -10m                           -15,561       73    -41,126      83

 a L10C = 0                                -8,687       41    -35,515      72

 a L10C > 0                                -5,948       28     -1,200       2

 c 0 L10C < -1m                               -16        0      2,313      -5

 d -1m   < L10C < -10m                     -1,243        6     -5,947      12

 e L10C < -10m                             -5,479       26     -9,314      19

 b L10D  > 0                               -6,562       31    -16,512      33

 c 0 < L10D < -1m                            -157        1    -21,677      44

 d -1m< -10m                               -1,088        5      5,615     -11

 e L10D  < -10m                           -13,567       63    -17,088      34
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                             P3 Lns 9-10   P3 Ln 35 Othr
                                             Stk Opt       Expns Items
                                             TotDiff       TotDiff
                                          _____________________________________
 Stock Options and Equity
 Compensation                                Sum      Col%       Sum      Col%
 ______________________________________________________________________________

 All                                       -51,830    100     -12,923      100
                      All                   -1,452      3       5,257      -41
 L09 Stock Optns = 0
                      f Ln9 Zero            -1,452      3       5,257      -41

                      All                   -4,197      8     -14,355      111
 b Ln9C = 0
                      f Ln9C = 0            -4,197      8     -14,355      111

                      All                    2,440     -5       1,781      -14
 c Ln9C > 0
                      f Ln9C > 0             2,440     -5       1,781      -14

                      All                   -37,275     72     -6,626       51

                      a 001-010              -9,554     18     -2,340       18

 d Top 250, Ln9C < 0  a 011-050             -11,532     22      7,295      -56

                      a 051-100              -5,859     11       -826        6

                      a 101-250             -10,330     20    -10,755       83

                      All                   -11,347     22      1,019       -8
 c 251 +up, Ln9C < 0
                      b 251 +up             -11,347     22      1,019       -8
 a L09C > 0                                   2,440     -5      1,781      -14

 b L09C = 0                                  -5,648     11     -9,097       70

 c 0 < L09C < -1m                              -348      1     -2,422       19

 d -1m = L09C < -10m                         -3,437      7      7,435      -58

 e L09C  < -10m                             -44,838     87    -10,620       82

 a L09D  > 0                                  1,703     -3     -2,312       18

 c 0  < L09D < -1m                            1,282     -2         27        0

 d -1m  < L09D < -10m                          -898      2     11,869      -92

 e L09D  < -10m                             -53,917    104    -22,507      174

 b L10C = 0                                 -16,515     32     -7,680       59

 a L10C > 0                                  -6,454     12      8,595      -67

 c 0 L10C < -1m                              -2,353      5        442       -3

 d -1m   < L10C < -10m                       -7,102     14       -117        1

 e L10C < -10m                              -19,406     37    -14,163      110

 b L10D  > 0                                -10,871     21      4,001      -31

 c 0 < L10D < -1m                            -2,093      4      2,623      -20

 d -1m< -10m                                 -8,087     16        576       -4

 e L10D  < -10m                             -30,779     59    -20,123      156

  Table 6. U.S. Corporations With Reconciled Form 1120 Schedule M-3:
             2007: Reconciliation With SOI Corporate File

  Dollar amounts in millions. Table amounts may not add to totals due
                             to rounding.
 _____________________________________________________________________________

                                                Returns      Total Assets
     Reconciliation of M-3 Report With
             SOI Corporate File                Sum  Col%        Sum     Col%
 _____________________________________________________________________________

 All                                           45,550 100    52,880,991 100

 P2 Ln30a is 0                                  1,237   3       211,644   0

 P2 Ln30a Not 0                                44,313  97    52,669,347 100

 a No M-3 data                                    950   2       134,058   0
 or Incorrect
 Tax Year

 b Data Problems                                2,205   5     5,401,969  10
 Parts I, II, or III

 c Minimally                                   42,395  93    47,344,964  90
 Reconcilable M-3

 A No Data,                                     3,155   7     5,536,027  10
 Incorrect TY,
 Problems

 B Minimally                                   42,395  93    47,344,964  90
 Reconcilable M-3

                       a No M-3 data or           902   2        68,131   0
                         Incorrect Tax Year

 P2 Ln30a is 0         b Data Problems Parts      328   1       141,407   0
                         I, II, or III

                       c Minimally Recon-           7   0         2,106   0
                         cilable M-3

                       a No M-3 data or            48   0        65,926   0
                         Incorrect Tax Year

 P2 Ln30a Not 0        b Data Problems          1,878   4     5,260,563  10
                         Parts I, II, or III

                       c Minimally             42,387  93    47,342,858  90
                         Reconcilable M-3

                       a No M-3 data or           144   0       121,086   0
                         Incorrect Tax Year

 a > $50 Mill          b Data Problems            529   1     5,369,079  10
                         Parts I, II, or III

                       c Minimally             17,420  38    46,807,292  89
                         Reconcilable M-3

                       a No M-3 data or           806   2        12,972   0
                         Incorrect Tax Year

 b < $50 Mill          b Data Problems          1,677   4        32,891   0
                         Parts I, II, or III

                       c Minimally             24,975  55       537,672   1
                         Reconcilable M-3

                       A No Data, Incorrect       684   2     1,087,979   2
                         TY, Problems

 a 1120 Consol         B Minimally             20,735  46    19,316,521  37
                         Reconcilable M-3

                       A No Data, Incorrect        84   0     4,183,055   8
                         TY, Problems

 b 1120 MixGrp         B Minimally                444   1    24,493,409  46
                         Reconcilable M-3

                       A No Data, Incorrect     2,387   5       264,993   1
                         TY, Problems

 c 1120 UnCons         B Minimally             21,216  47     3,535,034   7
                         Reconcilable M-3

                       A No Data,               2,453   5     5,515,660  10
                         Incorrect TY, Problems

 a M1 L1==0 & L10<>0   B Minimally             42,378  93    37,076,991  70
                         Reconcilable M-3

                       A No Data, Incorrect        49   0         1,727   0
                         TY, Problems

 b M1 L1<>0 & L10<>0   B Minimally                 17   0    10,267,973  19
                         Reconcilable M-3

 c M1 L1==0 & L10<>0   A No Data, Incorrect         6   0            61   0
                         TY, Problems

 d M1 L1==0 & L10<>0   A No Data, Incorrect       648   1        18,579   0
                         TY, Problems

 LB&I:                 A No Data, Incorrect       722   2     4,377,762   8
                         TY, Problems

 Financial Services    B Minimally              8,732  19    27,675,747  52
                         Reconcilable M-3

 LB&I: Natural         A No Data, Incorrect       567   1       385,451   1
                         TY, Problems

 Resources             B Minimally              7,264  16     5,969,880  11
                         Reconcilable M-3

 LB&I: Comm,           A No Data, Incorrect       442   1       269,042   1
                         TY, Problems

 Tech, Media           B Minimally              7,702  17     5,577,401  11
                         Reconcilable M-3

 LB&I: Retail,         A No Data, Incorrect       505   1       254,633   0
                         TY, Problems

 Food, Pharma          B Minimally              8,441  19     4,652,841   9
                         Reconcilable M-3

 LB&I: Hvy             A No Data, Incorrect       919   2       249,138   0
                         TY, Problems

 Mfg +Transprt         B Minimally             10,255  23     3,469,094   7
                         Reconcilable M-3
 _____________________________________________________________________________

                               [table continued]

                                                    Tax          Foreign Tax
     Reconciliation of M-3 Report With          After Credits     Credit
             SOI Corporate File                  Sum   Col%      Sum   Col%
 _____________________________________________________________________________

 All                                           280,387 100     82,806 100

 P2 Ln30a is 0                                     251   0          7   0

 P2 Ln30a Not 0                                280,135 100     82,799 100

 a No M-3 data                                     447   0         19   0
 or Incorrect
 Tax Year

 b Data Problems                                13,858   5      4,604   6
 Parts I, II, or III

 c Minimally                                   266,081  95     78,183  94
 Reconcilable M-3

 A No Data,                                     14,306   5      4,623   6
 Incorrect TY,
 Problems

 B Minimally                                   266,081  95     78,183  94
 Reconcilable M-3

                       a No M-3 data or            192   0          6   0
                         Incorrect Tax Year

 P2 Ln30a is 0         b Data Problems Parts        59   0          1   0
                         I, II, or III

                       c Minimally Recon-            0   0          0   0
                         cilable M-3

                       a No M-3 data or            255   0         13   0
                         Incorrect Tax Year

 P2 Ln30a Not 0        b Data Problems          13,799   5      4,603   6
                         Parts I, II, or III

                       c Minimally             266,081  95     78,183  94
                         Reconcilable M-3

                       a No M-3 data or            332   0         19   0
                         Incorrect Tax Year

 a > $50 Mill          b Data Problems          13,482   5      4,602   6
                         Parts I, II, or III

                       c Minimally             257,474  92     78,028  94
                         Reconcilable M-3

                       a No M-3 data or            115   0          0   0
                         Incorrect Tax Year

 b < $50 Mill          b Data Problems             376   0          2   0
                         Parts I, II, or III

                       c Minimally               8,607   3        156   0
                         Reconcilable M-3

                       A No Data, Incorrect      2,404   1      1,870   2
                         TY, Problems

 a 1120 Consol         B Minimally             166,638  59     38,932  47
                         Reconcilable M-3

                       A No Data, Incorrect     11,153   4      2,727   3
                         TY, Problems

 b 1120 MixGrp         B Minimally              80,388  29     38,561  47
                         Reconcilable M-3

                       A No Data, Incorrect        749   0         26   0
                         TY, Problems

 c 1120 UnCons         B Minimally              19,055   7        691   1
                         Reconcilable M-3

                       A No Data,               14,162   5      4,617   6
                         Incorrect TY, Problems

 a M1 L1==0 & L10<>0   B Minimally             256,980  92     72,114  87
                         Reconcilable M-3

                       A No Data, Incorrect         19   0          0   0
                         TY, Problems

 b M1 L1<>0 & L10<>0   B Minimally               9,101   3      6,069   7
                         Reconcilable M-3

 c M1 L1==0 & L10<>0   A No Data, Incorrect          0   0          0   0
                         TY, Problems

 d M1 L1==0 & L10<>0   A No Data, Incorrect        125   0          6   0
                         TY, Problems

 LB&I:                 A No Data, Incorrect      3,149   1      1,531   2
                         TY, Problems

 Financial Services    B Minimally              55,030  20      7,222   9
                         Reconcilable M-3

 LB&I: Natural         A No Data, Incorrect      4,692   2      1,930   2
                         TY, Problems

 Resources             B Minimally              61,932  22     41,171  50
                         Reconcilable M-3

 LB&I: Comm,           A No Data, Incorrect      1,727   1        109   0
                         TY, Problems

 Tech, Media           B Minimally              46,273  17     11,898  14
                         Reconcilable M-3

 LB&I: Retail,         A No Data, Incorrect      3,530   1        566   1
                         TY, Problems

 Food, Pharma          B Minimally              70,806  25     12,547  15
                         Reconcilable M-3

 LB&I: Hvy             A No Data, Incorrect      1,207   0        487   1
                         TY, Problems

 Mfg +Transprt         B Minimally              32,040  11      5,345   6
                         Reconcilable M-3
 _____________________________________________________________________________

                           [table continued]

                                                                Worldwide
                                                   Tax           Income
                                                Net Income     (Part I Ln 4)
     Reconciliation of M-3 Report With
             SOI Corporate File                  Sum   Col%     Sum   Col%
 _____________________________________________________________________________

 All                                           971,388 100    807,490 100

 P2 Ln30a is 0                                    -201   0        -52   0

 P2 Ln30a Not 0                                971,589 100    807,542 100

 a No M-3 data                                     458   0        -35   0
 or Incorrect
 Tax Year

 b Data Problems                                52,493   5      3,132   0
 Parts I, II, or III

 c Minimally                                   918,438  95    804,393 100
 Reconcilable M-3

 A No Data,                                     52,951   5      3,097   0
 Incorrect TY,
 Problems

 B Minimally                                   918,438  95    804,393 100
 Reconcilable M-3

                       a No M-3 data or             89   0          0   0
                         Incorrect Tax Year

 P2 Ln30a is 0         b Data Problems Parts      -285   0        -80   0
                         I, II, or III

                       c Minimally Recon-           -4   0         27   0
                         cilable M-3

                       a No M-3 data or            369   0        -35   0
                         Incorrect Tax Year

 P2 Ln30a Not 0        b Data Problems          52,778   5      3,212   0
                         Parts I, II, or III

                       c Minimally             918,442  95    804,365 100
                         Reconcilable M-3

                       a No M-3 data or            553   0        -35   0
                         Incorrect Tax Year

 a > $50 Mill          b Data Problems          52,327   5      2,998   0
                         Parts I, II, or III

                       c Minimally             915,346  94    814,860 101
                         Reconcilable M-3

                       a No M-3 data or            -95   0          0   0
                         Incorrect Tax Year

 b < $50 Mill          b Data Problems             166   0        134   0
                         Parts I, II, or III

                       c Minimally               3,092   0    -10,467  -1
                         Reconcilable M-3

                       A No Data, Incorrect      6,515   1      4,010   0
                         TY, Problems

 a 1120 Consol         B Minimally             549,329  57    507,525  63
                         Reconcilable M-3

                       A No Data, Incorrect     45,837   5     -2,269   0
                         TY, Problems

 b 1120 MixGrp         B Minimally             338,551  35    298,136  37
                         Reconcilable M-3

                       A No Data, Incorrect        598   0      1,356   0
                         TY, Problems

 c 1120 UnCons         B Minimally              30,558   3     -1,268   0
                         Reconcilable M-3

                       A No Data,               52,992   5      3,095   0
                         Incorrect TY, Problem

 a M1 L1==0 & L10<>0   B Minimally             870,978  90    751,664  93
                         Reconcilable M-3

                       A No Data, Incorrect         -6   0          2   0
                         TY, Problems

 b M1 L1<>0 & L10<>0   B Minimally              47,459   5     52,728   7
                         Reconcilable M-3

 c M1 L1==0 & L10<>0   A No Data, Incorrect        -16   0          0   0
                         TY, Problems

 d M1 L1==0 & L10<>0   A No Data, Incorrect        -19   0          0   0
                         TY, Problems

 LB&I:                 A No Data, Incorrect     10,730   1      7,656   1
                         TY, Problems

 Financial Services    B Minimally             142,225  15     99,277  12
                         Reconcilable M-3

 LB&I: Natural         A No Data, Incorrect     20,449   2     17,660   2
                         TY, Problems

 Resources             B Minimally             287,019  30    264,525  33
                         Reconcilable M-3

 LB&I: Comm,           A No Data, Incorrect      4,441   0      2,254   0
                         TY, Problems

 Tech, Media           B Minimally             158,003  16    130,744  16
                         Reconcilable M-3

 LB&I: Retail,         A No Data, Incorrect     12,013   1     10,922   1
                         TY, Problems

 Food, Pharma          B Minimally             236,861  24    211,450  26
                         Reconcilable M-3

 LB&I: Hvy             A No Data, Incorrect      5,318   1    -35,394  -4
                         TY, Problems

 Mfg +Transprt         B Minimally              94,330  10     98,396  12
                         Reconcilable M-3
 _____________________________________________________________________________

                           [table continued]

                                               P2 Rcncltn_Tot    Tax Income
                                                  (Ln 30a)    (Part II Ln 30D)
     Reconciliation of M-3 Report With
             SOI Corporate File                  Sum   Col%      Sum    Col%
 _____________________________________________________________________________

 All                                           624,430 100  1,036,763 100

 P2 Ln30a is 0                                       0   0       -165   0

 P2 Ln30a Not 0                                624,430 100  1,036,927 100

 a No M-3 data                                     110   0       -413   0
 or Incorrect
 Tax Year

 b Data Problems                                51,141   8     52,546   5
 Parts I, II, or III

 Minimally                                   573,179  92    984,630  95
 Reconcilable M-3

 A No Data,                                     51,251   8     52,133   5
 Incorrect TY,
 Problems

 B Minimally                                   573,179  92    984,630  95
 Reconcilable M-3

                       a No M-3 data or              0   0          0   0
                         Incorrect Tax Year

 P2 Ln30a is 0         b Data Problems Parts         0   0       -160   0
                         I, II, or III

                       c Minimally Recon-            0   0         -4   0
                         cilable M-3

                       a No M-3 data or            110   0       -413   0
                         Incorrect Tax Year

 P2 Ln30a Not 0        b Data Problems          51,141   8     52,706   5
                         Parts I, II, or III

                       c Minimally             573,179  92    984,634  95
                         Reconcilable M-3

                       a No M-3 data or            110   0       -413   0
                         Incorrect Tax Year

 a > $50 Mill          b Data Problems          51,399   8     52,475   5
                         Parts I, II, or III

                       c Minimally             585,624  94    981,447  95
                         Reconcilable M-3

                       a No M-3 data or              0   0          0   0
                         Incorrect Tax Year

 b < $50 Mill          b Data Problems            -258   0         70   0
                         Parts I, II, or III

                       c Minimally             -12,445  -2      3,183   0
                         Reconcilable M-3

                       A No Data, Incorrect      3,313   1      6,915   1
                         TY, Problems

 a 1120 Consol         B Minimally             389,506  62    584,337  56
                         Reconcilable M-3

                       A No Data, Incorrect     47,598   8     44,673   4
                         TY, Problems

 b 1120 MixGrp         B Minimally             188,986  30    369,570  36
                         Reconcilable M-3

                       A No Data, Incorrect        340   0        545   0
                         TY, Problems

 c 1120 UnCons         B Minimally              -5,313  -1     30,722   3
                         Reconcilable M-3

                       A No Data,               51,246   8     52,128   5
                         Incorrect TY, Problem

 a M1 L1==0 & L10<>0   B Minimally             568,361  91    915,592  88
                         Reconcilable M-3

                       A No Data, Incorrect          5   0          5   0
                         TY, Problems

 b M1 L1<>0 & L10<>0   B Minimally               4,818   1     69,037   7
                         Reconcilable M-3

 c M1 L1==0 & L10<>0   A No Data, Incorrect          0   0          0   0
                         TY, Problems

 d M1 L1==0 & L10<>0   A No Data, Incorrect          0   0          0   0
                         TY, Problems

 LB&I:                 A No Data, Incorrect     56,222   9     11,061   1
                         TY, Problems

 Financial Services    B Minimally              34,440   6    174,386  17
                         Reconcilable M-3

 LB&I: Natural         A No Data, Incorrect     14,890   2     20,077   2
                         TY, Problems

 Resources             B Minimally
                         Reconcilable M-3      267,421  43    303,343  29

 LB&I: Comm,           A No Data, Incorrect        -82   0      5,044   0
                         TY, Problems

 Tech, Media           B Minimally              35,828   6    161,589  16
                         Reconcilable M-3

 LB&I: Retail,         A No Data, Incorrect      8,659   1     10,217   1
                         TY, Problems

 Food, Pharma          B Minimally             152,197  24    243,429  23
                         Reconcilable M-3

 LB&I: Hvy             A No Data, Incorrect    -28,438  -5      5,734   1
                         TY, Problems

 Mfg +Transprt         B Minimally              83,293  13    101,883  10
                         Reconcilable M-3

    Table 7. U.S. Corporations With $10 Million or More in Assets: 1994-2007
      Combined Form 1120 Schedules M-1 and M-3 Book Income and Tax Income
     Dollar amounts in millions. Table amounts may not add to totals due to
                                   rounding.
 ______________________________________________________________________________

 1994-2003 SOI Form                      Tax Net      M1 Ln 1 Book  M1 Ln 2 Fed
 1120 With Assets >          Total       Income 1120  Income        Tax Exp
 $10M and M1 Lns             Assets      Pg 1 Ln 28   NET_          FED_INCM_
 1 & 10 Present     Returns  TOT_ASSTS   NET_INCM     INCM_BKS      TX_BKS
 ______________________________________________________________________________

       d M1 L1<>0
 1994  & L10<>0     41,316   17,291,694   401,370     388,361       135,373

       d M1 L1<>0
 1995  & L10<>0     42,344   19,050,556   475,007     441,417       154,932

       d M1 L1<>0
 1996  & L10<>0     43,063   19,056,447   507,639     475,677       172,767

       d M1 L1<>0
 1997  & L10<>0     43,099   21,440,374   533,060     504,012       187,268

       d M1 L1<>0
 1998  & L10<>0     42,820   23,865,589   458,455     519,328       181,300

       d M1 L1<>0
 1999  & L10<>0     43,786   26,316,146   474,806     519,565       224,336

       d M1 L1<>0
 2000  & L10<>0     44,883   30,829,872   484,965     462,235       241,133

       d M1 L1<>0
 2001  & L10<>0     43,033   32,721,945   287,611      78,950       147,693

       d M1 L1<>0
 2002  & L10<>0     41,477   33,748,555   277,946     188,378       167,656

       d M1 L1<>0
 2003  & L10<>0     40,762   35,077,990   429,455     579,094       216,353

 ______________________________________________________________________________

 2004-2007 SOI Form                                    Combined    Combined M1
 1120 With Assets >                       Tax Net      M1Ln 1 Book Ln 2 Fed Tax
 $10M and M3 Recon-                       Income 1120  Income+ M3  Exp + M3
 ciles or M1 Lns            Total Assets Pg 1 Ln 28    P2L30A Book P3L1&2 Fed
 1 & 10 Present     Returns TOT_ASSTS    NET_INCM      Income      Tax Expense
 ______________________________________________________________________________

       d M1 L1<>0
 2004  & L10<>0      7,939   5,521,366     58,675      64,303       27,323

       d M1 L1<>0
 2005  & L10<>0      1,640     533,658      9,874       8,304        3,599
       d M1 L1<>0
 2006  & L10<>0      1,016      29,547        626         283          295

       d M1 L1<>0
 2007  & L10<>0        648      18,579        -19         -91          114

 2004  M3           30,901  33,981,247    565,504     561,919      210,219

 2005  M3           38,516  42,456,769  1,242,862   1,054,823      290,337

 2006  M3           40,713  44,266,617  1,048,066     856,452      315,916

 2007  M3           42,395  47,344,964    918,438     573,179      272,231

 2004  M3 + M1      38,840  39,502,613    624,179     626,222      237,542

 2005  M3 + M1      40,156  42,990,427  1,252,736   1,063,127      293,936

 2006  M3 + M1      41,729  44,296,164  1,048,692     856,735      316,211

 2007  M3 + M1      43,043  47,363,543    918,419     573,088      272,345
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

 1994-2003 SOI Form
 1120 With Assets > Book Income     M1 Ln 6         M1 Ln 9       Income
 $10M and M1 Lns    + Fed Tax Exp   TOT_BK_         BK_INCM_      INCM_
 1 & 10 Present     = Pretax Book   INCM            TOT           RCNCLTN
 ______________________________________________________________________________

       d M1 L1<>0
 1994  & L10<>0     523,733         1,116,980       646,207       470,671

       d M1 L1<>0
 1995  & L10<>0     596,349         1,266,727       717,683       548,714

       d M1 L1<>0
 1996  & L10<>0     648,444         1,371,751       763,248       608,494

       d M1 L1<>0
 1997  & L10<>0     691,280         1,513,520       880,280       633,206

       d M1 L1<>0
 1998  & L10<>0     700,628        1,636,014      1,030,857       605,183

       d M1 L1<>0
 1999  & L10<>0     743,901        1,772,990      1,161,493       481,129

       d M1 L1<>0
 2000  & L10<>0     703,368        1,991,813      1,391,298       483,750

       d M1 L1<>0
 2001  & L10<>0     226,643        1,704,884      1,303,299       289,488

       d M1 L1<>0
 2002  & L10<>0     356,034        1,853,944      1,441,327       277,232

       d M1 L1<>0
 2003  & L10<>0     795,447        2,069,252       1,515,110      430,423
 ______________________________________________________________________________

 2004-2007 SOI Form Combined M1                                   Combined M1
 1120 With Assets > + M3 Book                                     Ln 10 Tax
 $10M and M3 Recon- Income + Fed    M1 Ln 6         M1 Ln 9       Income and
 ciles or M1 Lns    Tax Exp =       TOT_BK_         BK_INCM_      M3 P2L30D
 1 & 10 Present     Pretax Book     INCM            TOT           Tax Income
 ______________________________________________________________________________

       d M1 L1<>0
 2004  & L10<>0        91,627       216,303         156,760          52,825

       d M1 L1<>0
 2005  & L10<>0        11,903        33,117          22,712           9,747

       d M1 L1<>0
 2006  & L10<>0           577         1,161             537             622

       d M1 L1<>0
 2007  & L10<>0            23           218             226              -8

 2004  M3             772,138            na              na         625,773

 2005  M3           1,345,161            na              na       1,329,579

 2006  M3           1,172,368            na              na       1,100,335

 2007  M3             845,410            na              na         984,630

 2004  M3 + M1        863,765            na              na         678,598

 2005  M3 + M1      1,357,064            na              na       1,339,326

 2006  M3 + M1      1,172,945            na              na       1,100,957

 2007  M3 + M1        845,433            na              na         984,622
 ______________________________________________________________________________

                               [table continued]

 ______________________________________________________________________________

                                                             Bk-Tax Diff =
                                SOI                          Tax Net Inc.
 1994-2003 SOI Form          Inter-      Bk-Tax Diff =       minus
 1120 With Assets >         Company      Tax Net Inc.        Pretax Book
 $10M and M1 Lns           Dividend      minus Pretax        as % Pretax
 1 & 10 Present             Adjust.      Book                Book
 ______________________________________________________________________________

       d M1 L1<>0
 1994  & L10<>0                  0         -122,363              -23

       d M1 L1<>0
 1995  & L10<>0                  0         -121,342              -20

       d M1 L1<>0
 1996  & L10<>0                  0         -140,804              -22

       d M1 L1<>0
 1997  & L10<>0                  0         -158,220              -23

       d M1 L1<>0
 1998  & L10<>0                  0         -242,173              -35

       d M1 L1<>0
 1999  & L10<>0            130,385         -269,095              -36

       d M1 L1<>0
 2000  & L10<>0             116,765        -218,403              -31

       d M1 L1<>0
 2001  & L10<>0             112,095           60,968              27

       d M1 L1<>0
 2002  & L10<>0            135,386          -78,089              -22

       d M1 L1<>0
 2003  & L10<>0            123,720         -365,992              -46

 2004-2007 SOI Form
 1120 With Assets >
 $10M and M3 Recon-
 ciles or M1 Lns           DIV_
 1 & 10 Present            AFFIL_ADJ

       d M1 L1<>0
 2004  & L10<>0            6,716

       d M1 L1<>0
 2005  & L10<>0               25

       d M1 L1<>0
 2006  & L10<>0                2

       d M1 L1<>0
 2007  & L10<>0                0

 2004  M3                 58,402

 2005  M3                135,085

 2006  M3                 70,760

 2007  M3                 88,353

 2004  M3 + M1            65,118           -239,586              -28

 2005  M3 + M1           135,110           -104,328               -8

 2006  M3 + M1            70,762           -124,254              -11

 2007  M3 + M1            88,353             72,986                9
 ______________________________________________________________________________

 Note: Figures 1-3 use Tax Net Income and Pretax Book amounts from Schedule
 M-13 and Combined Schedules M-1 and M-3 for 2004 through 2007.

 

FOOTNOTES


1 The current paper repeats some material from Boynton, DeFilippes, and Legel (2005, 2006a, 2006b, and 2008), Boynton and Wilson (2006), and Boynton and Livingston (2010), used with permission. Our tax return table values may not add up because of rounding. The IRS Statistics of Income division corporate data file for year t includes all tax years ending between July of calendar year t and June of calendar year t + 1. Effective for tax years ending on or after December 31, 2004, Schedule M-3 replaced Schedule M-1 for corporations filing Form 1120 and reporting total assets of $10 million or more on Form 1120 Schedule L. Effective for tax years ending on or after December 31, 2006, for corporations with total assets of $10 million or more, Schedule M-3 applies to Form 1120-S for S corporations, to Form 1120-C for cooperative associations, to Form 1120-L for life insurance companies, and to Form 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 Form 1065 for partnerships with total assets of $10 million or more and to some other partnerships. Effective for tax years ending on or after December 31, 2007, a special Schedule M-3 applies to Form 1120-F for foreign corporations with effectively connected U.S. income and total assets of $10 million or more. Schedule M-1 continues to apply to Form 1120-RIC for regulated investment companies, to Form 1120-REIT for real estate investment trusts, and to all corporations with total assets of less than $10 million.

 

2See Boynton, DeFilippes, and Legel (2005, 2006a, 2006b, and 2008).

3 The minimum data and reconciliation tests for this 2007 Schedule M-3 study are discussed as part of the discussion of Table 6.

4 As shown in Figure 1, aggregate pretax book income is positive in the years 1994-2007 for corporations filing Form 1120 with $10 million or more in assets. As shown in Figure 2, the aggregate book-tax-difference adjustment for these corporations may be negative or positive in any given year.

5 Use of the SOI file by PAIR and LB&I is limited under a formal memorandum of understanding between SOI and LB&I to research studies. SOI file data is not used for IRS audit case building.

6 Placeholder data is commonly the edited return data from the prior tax year but may also be current-year data from the IRS Business Master File (limited return data tabulated by the IRS when the return is first received and processed) or, for returns not yet received, current-year survey data collected by SOI directly from the taxpayer on a voluntary basis on a limited number of critical variables.

7 For a discussion of the requirement of three or more taxpayers for aggregate data, see Office of Management and Budget Working Paper 22 (Rev. 2005) and IRS Publication 1075 (Rev. 2007).

8 Beginning with SOI data for tax year 2008 and all studies of SOI data prepared after May 2011, a requirement of five or more taxpayers applies.

9 SOI Publication 16 tables have not presented Schedule M-1 or Schedule M-3 data to date, and it is not planned for SOI Publication 16 to present Schedule M-3 data. Before the publication of this report and the publication of Boynton, DeFilippes and Legel (2005 and 2006a), only Plesko (2002) (for 1996-1998) and Plesko-Shumofsky (2005) (for 1995-2001) presented Schedule M-1 data for the SOI Publication 16 population. SOI has posted Schedule M-3 data on its website for tax years 2004, 2005, 2006, and 2007, available at http://www.irs.gov/taxstats/bustaxstats/article/0,,id=205351,00.html. See our discussion of our Table 6 for our reconciliation to the posted SOI 2007 Schedule M-3 data.

10See Treasury Department (1999) and Talisman (2000). See also Mills (1998) cited by Treasury (1999, at 32, n.118): "Mills finds evidence that the IRS is more likely to assert deficiencies on firms with large book-tax disparities, indicating that such disparities are correlated with aggressive tax planning."

11See Mills and Plesko (2003) for the proposed redesign of Schedule M-1. For discussions of problems in interpreting Schedule M-1 book-tax reconciliation data and problems with the related Schedule L book balance sheet data, see Boynton, Dobbins, DeFilippes, and Cooper (2002); Mills, Newberry, and Trautman (2002); Boynton, DeFilippes, Lisowsky, and Mills (2004); Boynton, DeFilippes, and Legel (2005, 2006a, 2006b, and 2008); and Boynton and Wilson (2006). For discussions of the problems in reconciling financial accounting income and tax income, see McGill and Outslay (2002), Hanlon (2003), Plesko (2003), McGill and Outslay (2004), Plesko (2004), Hanlon and Shevlin (2005), and Lisowsky and Trautman (2007). For a summary of the research through May 2007 on book-tax differences and on Schedule M-1 and Schedule M-3, see Weiner (2007). For early discussions of book-tax differences, see Boynton, Dobbins, and Plesko (1992); Mills (1998); Plesko (2002); and Plesko and Shumofsky (2005). For a discussion of the relationship between financial accounting of current federal income tax expense and Form 1120 tax liability, see Lisowsky (2009). For a discussion of tax shelters and financial accounting, see Lisowsky (2010). For a discussion of Financial Accounting Standards Board Interpretation No. 48 uncertain tax positions and Schedule M-3 data, see Dunbar, Philips, and Plesko (2009); Lisowsky, Robinson, and Schmidt (2010); and Blouin, DeBacker, and Sikes (2010). For a discussion of deferred taxes and the FAS 109 tax footnote, see Poterba, Rao, and Seidman (2011); and Raedy, Seidman, and Shackelford (2011).

12 For a discussion of the development of Schedule M-3, see Boynton and Mills (2004).

13 Temporary differences are important in tax administration because they may identify that an item is being included in the wrong 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 time value of money change in the value of the tax due.

14 The minimum data and reconciliation tests for this 2007 Schedule M-3 study are discussed as part of the discussion of Table 6.

15See Part I.C for a discussion of sign conventions for the difference between tax income and pretax book income.

16 Schedule M-3 instruction require that column (a) book expense and column (d) tax deduction amounts that reduce net book income and reduce net tax income be shown on Part III as positive amounts. However, some taxpayers fail to follow the instructions. See the discussion of Table 6 for a discussion of problems with taxpayer reporting and how we deal with the problems.

17 The difference in the number of corporations in 2007 and 2006 in Table 1A reflect the difference in the number of corporations filing Schedule M-3 that file a Schedule M-3 that pass our minimum data and reconciliation tests. The minimum data and reconciliation tests for this 2007 Schedule M-3 study are discussed as part of the discussion of Table 6.

18 Note that changes on the SOI corporate file do not change the amounts on the tax return and do not affect IRS audits (or lack of audits) for corporate tax returns.

19 It is improper to include intercompany dividends in tax net income if a consolidated tax group does not contain an insurance company subsidiary. Schedule M-3 instructions recognize that consolidated tax groups containing insurance company subsidiaries (mixed groups) may be required for book income accounting (under statutory accounting rules for insurance companies), and tax income accounting (under federal income tax consolidation rules for insurance companies) to include specified intercompany dividends in book income and in tax income. See the 2004 through 2010 Form 1120 instructions for Schedule M-3, Part I, lines 10 and 11; and Part II, lines 7 and 25 (line 26 before 2006). In April 2006 Form 8916 was announced to supplement Schedule M-3 for mixed groups, including tax consolidation groups with a Form 1120 parent and an insurance subsidiary. Effective for tax years ending on or after December 31, 2006, Form 8916 is used by mixed groups to reconcile tax net income on Schedule M-3 with taxable income on the tax return. See the discussion of Table 3 for more on the economic importance of mixed groups.

20 A similar effect exists on Schedule M-1. See Boynton, DeFilippes, and Legel (2005 and 2006a).

21 As previously discussed, corporations with insurance subsidiaries are subject to statutory accounting rules for book income and special rules for tax income for those insurance subsidiaries that include ICD in both book income and tax income.

22 On the SOI corporate file, SOI removes all ICD that it identifies from Form 1120 data, including from page 1, line 28, whether or not the tax consolidation group contains an insurance company subsidiary. See the discussion of the history of ICD editing by SOI for 1990-2003 tax years in Boynton, DeFilippes, and Legel (2005 and 2006a). Note that changes on the SOI corporate file do not change the amounts on the tax return and do not affect IRS audits (or lack of audits) for corporate tax returns.

23 SOI also corrects some taxpayer errors it finds on Form 1120, page 1. The observed difference between Schedule M-3, Part II, line 30, column (d) and Form 1120, page 1, line 28 on the SOI corporate file is the net effect of the SOI ICD adjustment and any other SOI error adjustments made on the SOI corporate file.

24See Part I.C for a discussion of sign conventions for the difference between tax income and pretax book income.

25 Schedule M-3 instructions require that column (a) book expense and column (d) tax deduction amounts that reduce net book income and reduce net tax income be shown on Part III as positive amounts. However, some taxpayers fail to follow the instructions. See the section on Table 6 for a discussion of problems with taxpayer reporting and how we deal with the problems.

26 We define "SEC 10K/Public" to include any tax return on which Schedule M-3, Part I, line 1a indicated that an SEC 10K financial statement was prepared or on which Part I, line 3a indicated that the corporation had publicly traded common stock. Some firms indicate the first without the second, which may mean publicly traded debt or a reporting error. Other firms report the second without the first, suggesting a reporting error. We make use of the presence of either indicator.

27 The minimum data and reconciliation tests for this 2007 Schedule M-3 study are included as part of the discussion of Table 6.

28 The aggregate pretax permanent difference is the sum of negative amounts for some corporations and positive for others among the total 42,395 corporations. The aggregate pretax permanent difference for the 180 corporations contains relatively more of the positive than the negative differences and is, as a net positive amount, larger than the net positive amount for all 42,395 corporations.

29 The minimum data and reconciliation tests for this 2007 Schedule M-3 study are discussed as part of the discussion of Table 6.

30 The aggregate pretax temporary and permanent difference is the sum of negative amounts for some corporations and positive for others among the total 42,395 corporations. The aggregate pretax temporary and permanent difference for the 89 mixed group corporations contains relatively more of the negative than the positive differences and is, as a net negative amount, larger than the net negative amount for all 42,395 corporations.

31 The industries listed in Table 4 are listed in SOI publications in the following industries, major codes, and sector codes: (A) Petroleum Refineries: Ind. 324110; (B) Pharmaceuticals: Ind. 325410; (C) Computers/Electronics: Major code 334; (D) Electrical Equipment: Major code 335; (E) Transportation Equipment: Major code 336; (F) Fabricated Metal and Machinery: Major code 332 and 333; (G) Food / Beverage Mfg: Major code 311 and 312; (H) Other Manufacturing: Major code 313, 315, 316, 321, 322, 323, 325, 326, 327, 331, 337, and 339, and Ind. 325125; (I) NonBank Holding Company: Ind. 551112; (J) Bank & Bank Holding Company: Ind. 551111, and Major code 521; (K) Securities/Commodities: Major code 523; (L) Other Financial: Major code 522, 524, and 525, and sector 53; (M) Trade: Sector code 41; (N) Information: Sector code 51; (O) Utilities: Sector code 22; (P) Transport/Warehousing: Sector code 48; (Q) Mining: Sector code 21; (R) Construction: Sector code 23; and (S) Service/Agriculture/Other: the remainder of the industries not listed above. See the discussion of Table 2 for a definition of SEC 10K/Public status.

32 The minimum data and reconciliation tests for this 2007 Schedule M-3 study are discussed as part of the discussion of Table 6.

33 On the 2005 and later Schedule M-3 form, incentive stock options are combined with non-qualified stock options as simply stock options on Part III, line 9.

34See Part I.C for a discussion of sign conventions for the difference between tax income and pretax book income.

35 Schedule M-3 instructions require that column (a) book expense and column (d) tax deduction amounts that reduce net book income and reduce net tax income be shown on Part III as positive amounts. However, some taxpayers fail to follow the instructions. See the discussion of Table 6 for a discussion of problems with taxpayer reporting and how we deal with the problems.

36 FAS 123R requires the expensing of stock options effective for quarterly or annual reporting periods beginning after June 15, 2005.

37 The minimum data and reconciliation tests for this 2007 Schedule M-3 study are discussed as part of the discussion of Table 6.

38 Some companies with assets less than $10 million voluntarily filed Schedule M-3. We do not analyze that data.

39 The SOI corporate file is a statistical sample. The record for a smaller tax return (usually measured by total assets) may be weighted to represent more than one tax return. Generally, tax returns for corporations with $50 million or more in assets have a weight of one -- that is, the record represents only itself. The record for a smaller tax return generally has a weight greater than one (for example, five) -- that is, the record represents several similar tax returns (for example, five tax returns). In 2004 SOI essentially selected all corporate tax returns with assets of $10 million or more and sampled smaller corporation returns. In 2005, 2006, and 2007, SOI essentially selected all corporate returns with assets of $50 million or more and sampled smaller corporation returns.

40See Part I.E for a fuller discussion of the sources of placeholder data.

41 Our classification of a return as having or not having minimally reconcilable Schedule M-3 data is solely for the purposes of this report and does not affect classification of the return for audit purposes.

42 We do not test the reconciliation between Part II, line 30, column (d) and Form 1120, page 1, line 28. Rather, if Part II, line 30, column (d) is nonzero, we treat any positive difference with page 1, line 28 for a consolidated return as the measure of the ICD removed by SOI from page 1, line 28.

43 After all sign corrections described here, an additional sign change was made for the presentation of data. Negative income (loss) differences in Part II reduce Part II, line 30, column (d) tax net income. We change the sign of all Part III data to show expense/deduction differences that reduce Part II, line 30, column (d) tax net income as negative differences consistent with the sign convention in Part II. See the discussion of Table 1A and Table 5.

44See the discussion of Table 6 for a discussion of the data and reconciliation requirements for this report.


END OF FOOTNOTES