2018 Shareholder Proposal Trends

Proxy proposals by shareholders are a significant activity for publicly traded companies.

85% of 2018 Shareholder Proposals Failed – A study by MyLogIQ shows that only one in seven shareholder proposals in 2018 were successful. So far this year, 300 companies in the Russell 3000 index have faced 495 shareholder proposals.

40% of Proposals Are Sponsored by Small Shareholders – The data shows that 40%, or 197, of these shareholder proposals were sponsored by individual/small shareholders.  88% of these small shareholder proposals failed, meaning that only 24 passed.

Here is a breakdown of Russell 3000 shareholder proposals for 2018 by sponsor and pass rate:

As the data shows, investment advisors and hedge funds had the most success with shareholder proposals.

For more information, email info@mylogiq.com

ASC 842 Lease Disclosure Trends

Uncategorized

Accounting changes triggered by the new FASB ASC 842 rule on lease liabilities and assets pose a potential risk to company SEC filings. Using our CompanyIQ™ platform, MyLoGIQ has analyzed SEC filings over the past six months to understand how companies are reacting to this new accounting rule. 

As expected, the most common disclosure location in SEC filings was in the Summary of Significant Accounting Policies section of Footnotes to Financials. For companies that will have a material impact from ASC 842, our study highlighted a best practice company that disclosed the impact in both the MD&A section as well as the Footnotes to Financials section with language that was consistent across both sections.

The top two industries affected by ASC 842 are manufacturing and finance based on our study of the 10-Qs and 10-Ks of the nearly 600 companies that filed from October 1, 2017 to March 20, 2018.

CEO State Pay Ratios – Less Than a Day to Earn a Year’s Salary

MyLogIQ Fact Studies

Several of America’s CEOs have to work less than a day to earn a year’s salary/the average person’s annual salary.  That’s the finding from MyLoGIQ’s review of CEO pay of S&P 500 companies.

MyLogIQ reviewed the 2017 pay of 164 CEOs of S&P 500 companies and found that 70 of those CEOS had to work less than one day to make the annual salary of the median worker in the state where their company is headquartered.

14 CEOs only had to work until lunch to make the same salary as the median worker in their state.

Another 62 CEOs had to work between a day and 2.5 days to earn the median salary of their state.

The MyLoGIQ pay ratio provides a state by state comparison of average CEO state median pay ratios.

 

 

Cannabis Proposal Up for Proxy Vote at Eli Lilly Shareholder Meeting in May 2018

MyLogIQ Fact Studies
Cannabis Proposal Up for Proxy Vote at Eli Lilly Shareholder Meeting in May 2018.

A shareholder proposal to help decriminalize cannabis will be on Eli Lilly’s 2018 proxy and will be up for a vote at the annual shareholder meeting on May 7, 2018.

Fred Pfenninger of Indiana, who owns 79 shares of Eli Lilly common stock, started the process of placing this proposal before the Lilly Board on November 2016 for the 2017 proxy vote.  Lilly forwarded the proposal to the SEC under Rule 14a-8 the following month as a no act filing requesting that the SEC deny the proposal from going forward. At that time, Lilly argued that the proposal was not received at their headquarters before the deadline for submitting shareholder proposals. However, the proposal made it to the 2018 Annual shareholders meeting.

The Lilly Board is recommending against the proposal, which appears as Item 7 on the 2018 Proxy Statement.  This should lead to an interesting vote in May.

Interesting Facts from the Proposal:

  • Lilly was a world leader in cannabis based pharmaceutical products in the early 1900s
  • Lilly sold 23 different cannabis items in its medical catalog in 1935
  • Eli Lilly, the third president of the company from 1932-1948, did his doctoral dissertation on cannabis in 1907.
  • Parke Davis worked with Lilly to create its own strain, Cannabis Americana, which Lilly grew in Greenfield, Indiana.

Source:  https://www.sec.gov/Archives/edgar/data/59478/000005947818000111/proxy2018_def14a.htm

Talk to Your Auditor Now or Pay Later: FERF 2017 Audit Fee Survey Report

MyLogIQ Fact Studies

January 16, 2018      Featured in FEI Daily, Pelland, Auditor Fees

FERF 2017 Audit Fee Survey Report – A Financial Executives Research Foundation Report Written by Dave Pelland in Collaboration with MyLogIQ

By Dave Pelland January 16, 2018

Mergers and acquisitions, growing documentation requests from external auditors and new accounting standards are among the factors contributing to higher fees during the 2016 audit season.

Taking a broader look at public companies, an analysis of 2016 SEC filing data by data analysis provider MyLogIQ reveals a median audit fee increase of 2.6 percent among 6,394 registrants. This compares favorably with the 3.5 percent median increase reported for the 2015 audit season.

To view the entire report, click http://daily.financialexecutives.org/talk-auditor-now-pay-later/

Some Reported Staggering Increases in 2016 Cash Bonuses of More than 40 percent

MyLogIQ Fact Studies

The Conference Board, Arthur J. Gallagher & Co. and MyLogIQ Release Comprehensive Review of Russell 3000 Executive Pay Packages

According to research on executive compensation released today by The Conference Board, while the value of cash bonuses awarded by publicly traded U.S. financial firms grew 10.6 percent overall in 2016, the analysis by asset value shows extraordinarily wide variation in the level of such growth. CEOs of leading companies with asset value in the US$50-99.9 billion group reported staggering year-on-year bonus increases of more than 40 percent in value (and almost 500 percent since 2010). However, even during the 2016 expansionary period, annual bonuses were affected by the cyclical fortunes of underperforming industries, with companies in consumer discretionary, consumer staples, health care and telecommunications services reporting median declines.

A collaboration between The Conference Board, Arthur J. Gallagher & Co. and MyLogIQ, CEO and Executive Compensation Practices: 2017 Edition documents trends and developments in CEO and senior management compensation at companies that issue equity securities registered with the U.S. Securities and Exchange Commission (SEC), and were included in the Russell 3000 index as of May 2017. The study of disclosed compensation elements is complemented by the review of the major features of short-term and long-term incentive plans (STIs and LTIs) in a subset of 100 mid-market companies included in the Russell 3000 index as of May 2017. (For the purpose of this report, mid-market refers to nonfinancial companies with annual revenue between US$1 billion and US$5 billion, and financial companies with asset value between US$1 billion and US$10 billion). In addition, the publication illustrates findings from The Conference Board survey of corporate secretaries and general counsels on the role of the board of directors in setting executive compensation, as well as the analysis of say-on-pay resolutions and shareholder proposals at Russell 3000 companies on issues of executive pay that went to a vote in the 2017 proxy season.

“We are pleased to present the new edition of what has become one of the most comprehensive benchmarking publications on the executive compensation of U.S. public companies,” said Matteo Tonello, Managing Director of Corporate Leadership at The Conference Board and a co-author. “Given today’s emphasis on pay for performance and the dialogue on equality that is expected to continue in coming years, our granular data on CEO pay across the entire Russell 3000 is a window into long-term business strategy and the changing corporate culture.”

“Using the data contained in this report as both a benchmark and trend indicator empowers employers, their compensation committees and boards to design strategic executive compensation programs to meet the needs of today’s key talent,” added co-author James Reda, Managing Director, Executive Compensation in the Human Resources & Compensation Consulting practice of Arthur J. Gallagher & Co. “Balancing the pay mix to incentivize performance, retain top performers and drive shareholder value is a complex task. This report is a valuable tool to help drive employers’ strategic decision making.”

“Our broader sample highlights the bigger picture,” said Paul Hodgson, partner of governance research firm BHJ Partners and co-author of the study. “Rather than limiting our analysis to the S&P 500 or another sample of large public corporations, our report highlights the important differences that exist in executive compensation between the S&P 500 and the broader Russell 3000 universe, making it that much more relevant and applicable to thousands of employers.”

Other findings highlighted in CEO and Executive Compensation Practices: 2017 Edition include:

  • Exceptional financial market performance continued to fuel the recourse to equity-based compensation, with the pay mix analysis confirming the inexorable rise of stock awards at the expense of both base salary and stock options. Compensation committees of boards of directors have continued to take advantage of high equity valuations to increase the amount of pay at risk, and shift the weighting of compensation elements from cash to stock. From 2010 to 2016, stock awards are up from 22.8 percent to 36.7 percent in the Russell 3000 and from 32 percent to 47.4 percent in the S&P 500, occupying a greater portion of total pay than ever before. Only seven years ago, base salary represented 30.25 percent of the typical Russell 3000 CEO pay mix, a share that fell consistently over time to reach 23.93 percent in 2016; in the S&P 500, it went from 14.22 percent in 2010 to 11.3 percent last year. In general, as widely documented since the financial crisis of 2008, the weight of stock options in the typical compensation package has been gradually reduced, mostly due to their volatility and concerns about their real effectiveness as performance motivators.
  • In addition to expanding their share of the total compensation mix, stock awards have been growing in value and offsetting the softening of stock option grants. In 2016, the median Russell 3000 CEO received US$1.4 million worth of company shares, while their counterpart in the S&P 500 received US$5.4 million—marking a growth rate of 12.4 percent in the Russell 3000 and almost 8 percent in the S&P 500. Even more remarkable is the trajectory that this component of pay has followed over the last few years: In the 2010-2016 period alone, the value of stock awarded to CEOs has risen 265 percent in the Russell 3000 and almost 100 percent in the S&P 500. Energy companies were the most generous in terms of stock grants in 2016, awarding US$3 million at the median, while health care companies reported the lowest amounts (US$402,000). Over the six-year period, the highest median increase in stock award value was tenfold and seen among consumer staples organizations. The analysis by company size reveals a direct correlation between the value of stock grants to CEOs and the size of their employer.
  • Increases in CEO base salary vary considerably by index, with the median rise in the Russell 3000 close to that for total compensation and little or no movement in the S&P 500.Low inflation rates and the shift to compensation in the form of equity awards continue to explain the moderate rise in base salary. In 2016, the median base salary rise for CEOs in the Russell 3000 was 4.6 percent, compared to less than a percentage point in the S&P 500. By means of comparison, for 2016 The Conference Board has recently reported an overall base salary increase for the general workforce of U.S. public companies of 3 percent, the same as in each of the last seven years.[1] A more detailed breakdown by revenue and asset value confirms that rises in base salary for CEOs of the largest companies lagged those of the smallest by significant amounts. Only those CEOs leading the very largest companies, US$50 billion and more in revenue, received an increase of more than 5 percent. Most others were in the region of 2 percent or less.
  • While increases in base salary for Named Executive Officers were similar to those for total compensation, NEOs benefited from much higher bonuses, especially in the S&P 500.The rates of increase in NEO base salary closely mirrored those seen for their total compensation—more specifically, they were 5.1 percent in the Russell 3000 and 3.2 percent in the S&P 500. No significant variation in base salary emerges from the analysis by industry, either over the last year or over the last six years, except for health care companies that reported the highest of all median annual salary raises (8.6 percent). In the analysis by size, changes in base salary also followed a pattern that is very similar to the one described for total compensation. The rate of change for annual bonuses, on the other hand, was higher than that for total compensation, which would lead to an increase in cash incentives in the overall mix. The pattern by company size was also reversed, as bonuses increased by more for NEOs in the S&P 500 (9.3 percent) compared to those in the Russell 3000 (7.7 percent). The overall value of annual bonuses has changed very little over the last six years, especially in the S&P 500, where it has hovered around US$600,000 for the whole period. For both groups, there was a drop in bonus value in 2015, leading to the more substantial increase to 2016 as bonuses recovered.
  • Performance-based awards now approach 50 percent of the total LTI award value at mid-market companies, demonstrating that these companies adopt the LTI trends of the country’s largest companies, but with some lag time. Among the Top 200 U.S. companies by market capitalization, performance-based LTI awards first averaged 50 percent of LTI grant value back in 2012, reflecting at that time a greater desire among large companies for pay-for-performance alignment and rewards with a big potential upside still within the limit of Internal Revenue Code Section 162(m) tax-deductibility. That said, the mid-market is catching up, with performance-based awards making up 48 percent of the total LTI grant value in 2016, up from just 39 percent in 2014. Following the trend of large companies, as performance-based awards have increased in the mid-market, both appreciation awards and time-based restricted stock/units have declined (from 26 percent and 35 percent in 2014 to 20 percent and 32 percent in 2016, respectively). With respect to the choice of compensation vehicles, in designing LTI awards with two or more performance metrics, a number of companies tend to prefer a balanced approach that incentivizes stock appreciation, corporate results and retention. In 2016, 29 percent of companies used all three types of LTI awards: 1) appreciation awards that include stock options, SARs (stock appreciation rights) and incentivized stock price increases); 2) performance-based awards that include performance shares, performance restricted stock, and performance or premium stock options; and 3) long-term incentive cash—effective vehicles to promote corporate performance targets and restricted stock to ensure executive retention. Use of all three LTI award vehicles has nearly doubled since 2014, when only 16 percent of companies structured plans this way.

CEO and Executive Compensation Practices: 2017 Edition is available for download here.

A fee may apply for non-members of The Conference Board.

Qatar and SEC Comment Letters on State Sponsors of Terrorism

Uncategorized, , , ,

Recently several Gulf nations, including Saudi Arabia, have severed connections with Qatar; they claim the country is destabilizing the region with its support for extremist groups. Though the United States has interests in the country of Qatar, President Trump has expressed his support for the boycotting of Qatar by the Gulf Nations, claiming “…perhaps this will be the beginning of the end to the horror of terrorism!”

If President Trump followed Saudi Arabia’s lead and pushed to label Qatar as a state sponsor of terrorism, what would this mean for public companies? What industries would most be affected?

Currently, the Department of State has labeled three different countries as state sponsors of terrorism: Sudan, Syria, and Iran. These countries are subject to U.S. economic sanctions and export controls.

The Securities and Exchange Commission ensures that public companies are depicting the nature and extent of any past, current, and anticipated contacts with these countries, whether through subsidiaries, affiliates, distributor, partners, joint venture partners or other direct or indirect arrangements in their SEC filings.

MyLogIQ studied trends in SEC Comment Letters relating states labeled as sponsors of terrorism and found the following data:

The top 10 industries who received SEC Comment Letters relating to countries designated as sponsors of terrorism and the number of companies for each industry are:

MyLogIQ also studied SEC filings for mentions of Qatar. The top 10 industries who have disclosed relationships or possible associations with Qatar are shown below.

SEC Comment Letter Disclosures:

Company: Delta Airlines Inc/DE/

SEC Comment Letter Disclosure: Please discuss the materiality of any contacts with Sudan and Syria you describe in response to the comment above, and whether the contacts constitute a material investment risk for your security holders.

Company Response: Deltas total revenues for 2014, 2015, 2016 and the first three months of 2017 were $40.4 billion, $40.7 billion, $39.6 billion, and $9.1 billion, respectively. As discussed in the response to comment 1 above, Delta did not operate flights to or from either Sudan or Syria during the referenced period nor did its subsidiaries or the companies in which Delta holds a minority investment operate in either of the two countries. The interline sales commission revenue Delta received from flights operated to or from Sudan (on carriers other than Sudanese carriers) did not exceed $3,000 per annum in any of the referenced period and did not exceed $2,000 per annum in two of the years in the referenced period. Delta had no revenue related to Syria in any of the years in the referenced period.

 

Company: Comcast Corp

SEC Comment Letter Disclosure: A press release on the NBCUniversal.com website dated January 13, 2016 states that NBCUniversal International signed a long-term deal with OSN, a pay-TV network in the Middle East and North Africa, granting OSN exclusive rights to NBCUniversal International content including the Syfy channel. The OSN.com website provides TV scheduling for its services in Sudan and Syria that include the Syfy channel and programming produced by Universal Pictures, an entity you identify on page 1 of the 10- K as included in your filmed entertainment business segment. Sudan and Syria are designated by the Department of State as state sponsors of terrorism, and are subject to U.S. economic sanctions and export controls. Please describe to us the nature and extent of any past, current, and anticipated contacts with Sudan and Syria, whether through subsidiaries, affiliates, distributors, partners, joint venture partners or other direct or indirect arrangements.

Company Response: NBCUniversal has not had any agreements and/or commercial arrangements with the governments of either Syria or Sudan during the last three fiscal years or the three months ended March 31, 2017 (the Relevant Time). NBCUniversal has had minimal contacts with Sudan and Syria during the Relevant Time as described below. We note that, although Sudan has not yet been removed from the list of state sponsors of terrorism, pursuant to a general license issued on January 17, 2017 by the U.S. Department of the Treasurys Office of Foreign Assets Control (OFAC), U.S. persons are currently generally permitted to transact with individuals and entities in Sudan. Further, Executive Order 13761, dated January 13, 2017, provides for the revocation of the sanctions provisions in prior Sudan-related Executive Orders on July 12, 2017, if the Government of Sudan sustains certain positive actions. We do not have business offices or ongoing operations located in Sudan or Syria. While our general approach is to exclude Sudan and Syria, as well as other countries subject to U.S. economic sanctions, from NBCUniversals distribution, programming, and licensing contracts, occasionally Sudan and/or Syria have been included within a larger territory covered in certain contractual arrangements in a manner consistent with OFAC regulations based on the application of guidance related to the general inventory rule and/or the informational materials exemption.

Company: Exar Corp

SEC Comment Letter Disclosure: We are aware of publicly available information indicating that you have significant business with ZTE Corporation, which is reported to have sold products into Sudan and Syria. Sudan and Syria are designated as state sponsors of terrorism by the State Department and are subject to U.S. economic sanctions and export controls. You do not include disclosure in the Form 10-K about contacts with Sudan and Syria. Please describe to us the nature and extent of any past, current and anticipated contacts with Sudan and Syria, whether through subsidiaries, original equipment manufacturers, distributors, customers or other direct or indirect arrangements.

Company Response: The Company has not entered into any agreements, arrangements or other contacts with Sudan or Syria and has no future plans to enter into any such agreements, arrangements or other contacts. Moreover, the Company does not maintain any offices or other facilities in Sudan or Syria, has no employees in either of those countries, and has no assets or liabilities associated with activities in either of those countries. The Company derives its revenue from the sale of semiconductors to distributors who then sell parts to their customers to integrate or incorporate into other products. The Companys distributors work with their customers to fulfill any orders that involve Company products. The Company receives a weekly resale report from its distributors so it can monitor its sell-through to its end customer. With respect to ZTE, which the Company considers its end customer, the Company does not directly sell any products to ZTE; all prior sales to ZTE have gone through the Companys distributors and consisted of sales of the Companys standard commodity products. In addition, the Company believes its standard terms and conditions of sale obligate its distributors and its end customers to strictly comply with United States export control laws and regulations.

 

 

For more information on our study or on how to use the Company IQ™ software to analyze your peer companies, please contact us at info@mylogiq.com or call 888-564-4910 and speak with one of our specialists. If you are quoting this study, attribution to MyLogIQ, LLC by providing a link to www.mylogiq.com and mention our service Company IQ™ “The new standard in public company research and competitive intelligence” is required.

Trump and Administration: Risk Factor for Hundreds of Companies

Trump Risk Factor Disclosures, , , ,

MyLogIQ study reveals that, in the last 90 days, 538 public companies have disclosed Donald Trump and his administration as a risk factor in their SEC filings. A large increase since weeks after the election, when only two companies were disclosing, then president-elect, Trump as a risk factor.

Many of these companies are in the Manufacturing and Finance, Insurance & Real Estate sectors, as shown in the chart below.

While all industries were included in our study, we have disclosed the top 7 and the number of companies, for said industries, who disclosed Trump as a risk factor below.

MyLogIQ searched through hundreds of SEC filings and though distinct industries are impacted differently by the Trump administration, a consistent factor for all industries was uncertainty.

Examples of those disclosures are shown below.

CTI BIOPHARMA CORP (CTIC) – Pharmaceutical Preparations

“Additionally, uncertainty and speculation regarding the possible repeal of all or a portion of the Patient Protection and Affordable Care Act has emerged after the recent election of the President of the United States. Members of the Trump administration, including the President, have made statements suggesting the administration plans to seek repeal of all or portions of the Affordable Care Act, and have stated that they will ask Congress to replace the current legislation with new legislation. The uncertainty this causes for the healthcare industry could also adversely affect the commercialization of our products.”

YUMA ENERGY, INC. (YUMA) – Crude Petroleum & Natural Gas

“The direction of future U.S. climate change regulation is difficult to predict given the current uncertainties surrounding the policies of the Trump Administration.”

EQUINIX INC (EQIX) – Real Estate Investment Trusts

“Implementation of the Clean Power Plan was stayed by the Supreme Court pending resolution of the underlying legal challenges, and the future of the Clean Power Plan under President Trump’s administration is uncertain in any event.”

METLIFE INC (MET) – Life Insurance

“In addition, the impact on global capital markets, the economy and MetLife of the transition occurring in the United States government and the priorities of the Trump Administration is uncertain.”

QUALITY SYSTEMS, INC (QSII) – Services-Computer Integrated Systems Design

“The results of the 2016 Congressional and Presidential elections have created new uncertainties. President Donald Trump and leaders of the 115th Congress have stated their intention to make significant changes to existing healthcare laws and regulations, but the future outlook for the various healthcare reform proposals under discussion remains uncertain.”

LAKELAND BANCORP INC (LBAI) – State Commercial Banks

“President Donald Trump has stated that he intends to relax financial regulations, including various provisions of the Dodd-Frank Act and the rules implementing those provisions. The nature and extent of future legislative and regulatory changes affecting financial institutions remains very unpredictable at this time.”

For detailed disclosure report and the full list of all companies, please email info@mylogiq.com.

For more information on our study or on how to use the Company IQ™ software to analyze your peer companies, please contact us at info@mylogiq.com or call 888-564-4910 and speak with one of our specialists. If you are quoting this study, attribution to MyLogIQ, LLC by providing a link to www.mylogiq.com and mention our service Company IQ™ “The new standard in public company research and competitive intelligence” is required.

Revenue Recognition Impact Classifications Study on S&P 500

Uncategorized

MyLogIQ study reveals, ASU 2014-09 Revenue Recognition standard is still being evaluated in 63% of the S&P 500 companies, while nearly 7% disclosed they will have an impact, nearly 29% disclosed they will have no impact, and less than 1% have not mentioned the ASU. The 10-K and 10-Q filings for the last 180 days as of May 17, 2017 were analyzed in this study.

MyLogIQ researched the impact classifications of Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) on the S&P 500 companies.
Summary:
Analyzing the S&P 500 companies, we classified them as follows:

Companies which disclosed revenue recognition to have No Impact: 147
Companies which disclosed revenue recognition evaluation in process: 314
Companies who have disclosed an Impact: 35
Companies which disclosed revenue recognition to have a Material Impact: 2
Companies which disclosed revenue recognition to have a Timing Impact: 23
Companies which disclosed revenue recognition to have a both Timing and Material Impact: 7
Companies which have an Impact but it is ambiguous: 3
Companies with no specific disclosure of ASU 2014-09: 4

For a detailed disclosure report with the disclosure language on companies who have stated an impact, please email info@mylogiq.com.


Companies who have as of May 17th will have a material impact on their revenue recognition (ASU 2014-09) are shown below, along with ASU adoption date.

The two (2) companies with material impact are:

Companies who have as of May 17th stated clearly that the policy ASU 2014-09, will have a timing impact on their revenue recognition are shown below, along with ASU adoption date.
The twenty-three (23) companies are:

Companies who have as of May 17th stated clearly that the policy ASU 2014-09, as currently written, will have a material and timing impact on their revenue recognition are shown below, along with ASU adoption date.
The seven (7) companies are:

Companies who have as of May 17th stated that the policy ASU 2014-09, as currently written, will have some impact on their revenue recognition, but have been ambiguous, are shown below, along with ASU adoption date.
The three (3) companies are:

All companies who have stated an impact are shown below, along with disclosure language directly from their SEC filings.

Companies who have as of May 17th stated clearly that the policy ASU 2014-09, as currently written, will have an immaterial impact on their revenue recognition are shown below. These companies may continue to evaluate any possible impacts.
The one hundred and forty-seven (147) companies are:

ABBOTT LABORATORIES
ACCENTURE PLC
ACTIVISION BLIZZARD, INC.
ADVANCE AUTO PARTS INC
AETNA INC /PA/
AFLAC INC
ALEXION PHARMACEUTICALS INC
ALLEGION PLC
ALPHABET INC.
ALTRIA GROUP, INC.
AMERICAN ELECTRIC POWER CO INC
AMERIPRISE FINANCIAL INC
AMGEN INC
ANADARKO PETROLEUM CORP
APACHE CORP
APPLE INC
AUTODESK INC
BALL CORP
BANK OF AMERICA CORP /DE/
BAXTER INTERNATIONAL INC
BED BATH & BEYOND INC
C H ROBINSON WORLDWIDE INC
CAPITAL ONE FINANCIAL CORP
CARMAX INC
CBOE HOLDINGS, INC.
CELGENE CORP /DE/
CENTENE CORP
CHIPOTLE MEXICAN GRILL INC
CHUBB LTD
CHURCH & DWIGHT CO INC /DE/
CIGNA CORP
CIMAREX ENERGY CO
CINCINNATI FINANCIAL CORP
CITIGROUP INC
CITIZENS FINANCIAL GROUP INC/RI
COLGATE PALMOLIVE CO
COMERICA INC /NEW/
CONCHO RESOURCES INC
CONOCOPHILLIPS
CONSTELLATION BRANDS, INC.
CROWN CASTLE INTERNATIONAL CORP
CSX CORP
DEVON ENERGY CORP/DE
DIGITAL REALTY TRUST, INC.
DISCOVER FINANCIAL SERVICES
DOLLAR TREE INC
E TRADE FINANCIAL CORP
EASTMAN CHEMICAL CO
EDISON INTERNATIONAL
EMERSON ELECTRIC CO
EQT CORP
ESSEX PROPERTY TRUST INC
EXELON CORP
EXPEDITORS INTERNATIONAL OF WASHINGTON INC
EXTRA SPACE STORAGE INC.
FASTENAL CO
FEDEX CORP
FIFTH THIRD BANCORP
FISERV INC
FORD MOTOR CO
FREEPORT-MCMORAN INC
GARTNER INC
GENERAL MILLS INC
GILEAD SCIENCES INC
GOLDMAN SACHS GROUP INC
HALLIBURTON CO
HARTFORD FINANCIAL SERVICES GROUP INC/DE
HASBRO INC
HERSHEY CO
HONEYWELL INTERNATIONAL INC
HOST HOTELS & RESORTS, INC.
HUNT J B TRANSPORT SERVICES INC
ILLINOIS TOOL WORKS INC
INGERSOLL-RAND PLC
J M SMUCKER CO
JPMORGAN CHASE & CO
KANSAS CITY SOUTHERN
KELLOGG CO
KIMBERLY CLARK CORP
KIMCO REALTY CORP
LOEWS CORP
LYONDELLBASELL INDUSTRIES N.V.
MACERICH CO
MARTIN MARIETTA MATERIALS INC
MASCO CORP /DE/
METLIFE INC
MONDELEZ INTERNATIONAL, INC.
MURPHY OIL CORP /DE
NAVIENT CORP
NETFLIX INC
NEWMONT MINING CORP /DE/
NOBLE ENERGY INC
NORTHERN TRUST CORP
NORTHROP GRUMMAN CORP /DE/
NUCOR CORP
ORACLE CORP
PACCAR INC
PAYCHEX INC
PAYPAL HOLDINGS, INC.
PEOPLE’S UNITED FINANCIAL, INC.
PEPSICO INC
PFIZER INC
PHILIP MORRIS INTERNATIONAL INC.
PIONEER NATURAL RESOURCES CO
PNC FINANCIAL SERVICES GROUP, INC.
PPL CORP
PRICE T ROWE GROUP INC
PROCTER & GAMBLE CO
PRUDENTIAL FINANCIAL INC
PUBLIC STORAGE
QUALCOMM INC/DE
QUEST DIAGNOSTICS INC
RAYTHEON CO/
REALTY INCOME CORP
REGENERON PHARMACEUTICALS INC
REGIONS FINANCIAL CORP
REYNOLDS AMERICAN INC
ROSS STORES INC
SCHLUMBERGER LIMITED/NV
SEMPRA ENERGY
SIMON PROPERTY GROUP INC /DE/
SNAP-ON INC
STATE STREET CORP
TARGET CORP
TE CONNECTIVITY LTD.
TESORO CORP /NEW/
TEXAS INSTRUMENTS INC
THERMO FISHER SCIENTIFIC INC.
TIME WARNER INC.
TRACTOR SUPPLY CO /DE/
TRAVELERS COMPANIES, INC.
TYSON FOODS INC
UDR, INC.
UNION PACIFIC CORP
UNITEDHEALTH GROUP INC
UNUM GROUP
US BANCORP /DE/
V F CORP
VALERO ENERGY CORP/TX
VERISIGN INC/CA
WAL MART STORES INC
WASTE MANAGEMENT INC
WESTERN UNION CO
WEYERHAEUSER CO
XEROX CORP
YUM BRANDS INC
ZOETIS INC.

The following companies have stated in their SEC filings that they are evaluating the impact of applying ASU 2014-09, if any, to their revenue recognition. These companies might have stated that the impact will be material or not for part of their business, but have not stated end results of their evaluations.
The three hundred and fourteen (314) companies are:

ABBVIE INC.
ACUITY BRANDS INC
AES CORP
AFFILIATED MANAGERS GROUP, INC.
AGILENT TECHNOLOGIES INC
AIR PRODUCTS & CHEMICALS INC /DE/
ALASKA AIR GROUP, INC.
ALBEMARLE CORP
ALEXANDRIA REAL ESTATE EQUITIES INC
ALLERGAN PLC
ALLIANCE DATA SYSTEMS CORP
ALLIANT ENERGY CORP
ALLSTATE CORP
AMAZON COM INC
AMEREN CORP
AMERICAN AIRLINES GROUP INC.
AMERICAN EXPRESS CO
AMERICAN INTERNATIONAL GROUP INC
AMERICAN TOWER CORP /MA/
AMERICAN WATER WORKS COMPANY, INC.
AMERISOURCEBERGEN CORP
AMETEK INC/
AMPHENOL CORP /DE/
AMSURG CORP
ANTHEM, INC.
AON PLC
APARTMENT INVESTMENT & MANAGEMENT CO
APPLIED MATERIALS INC /DE
ARCHER DANIELS MIDLAND CO
ARCONIC INC.
ASSURANT INC
AT&T INC.
AUTOMATIC DATA PROCESSING INC
AUTONATION, INC.
AUTOZONE INC
AVALONBAY COMMUNITIES INC
AVERY DENNISON CORP
BAKER HUGHES INC
BANK OF NEW YORK MELLON CORP
BB&T CORP
BECTON DICKINSON & CO
BERKSHIRE HATHAWAY INC
BIOGEN INC.
BLACKROCK INC.
BORGWARNER INC
BOSTON PROPERTIES INC
BOSTON SCIENTIFIC CORP
BROADCOM LTD
BROWN FORMAN CORP
CABOT OIL & GAS CORP
CAMPBELL SOUP CO
CARDINAL HEALTH INC
CARNIVAL CORP
CATERPILLAR INC
CBRE GROUP, INC.
CBS CORP
CENTERPOINT ENERGY INC
CENTURYLINK, INC
CERNER CORP /MO/
CF INDUSTRIES HOLDINGS, INC.
CHARTER COMMUNICATIONS, INC. /MO/
CHESAPEAKE ENERGY CORP
CHEVRON CORP
CINTAS CORP
CISCO SYSTEMS, INC.
CITRIX SYSTEMS INC
CLOROX CO /DE/
CME GROUP INC.
CMS ENERGY CORP
COACH INC
COGNIZANT TECHNOLOGY SOLUTIONS CORP
CONAGRA BRANDS INC.
CONSOLIDATED EDISON INC
COOPER COMPANIES INC
CORNING INC /NY
COSTCO WHOLESALE CORP /NEW
COTY INC.
CSRA INC.
CUMMINS INC
CVS HEALTH CORP
DANAHER CORP /DE/
DARDEN RESTAURANTS INC
DAVITA INC.
DEERE & CO
DELPHI AUTOMOTIVE PLC
DELTA AIR LINES INC /DE/
DISCOVERY COMMUNICATIONS, INC.
DISH NETWORK CORP
DOMINION RESOURCES INC /VA/
DOVER CORP
DOW CHEMICAL CO /DE/
DTE ENERGY CO
DUKE ENERGY CORP
DUPONT E I DE NEMOURS & CO
EATON CORP PLC
EBAY INC
ECOLAB INC
EDWARDS LIFESCIENCES CORP
ELECTRONIC ARTS INC.
EOG RESOURCES INC
EQUIFAX INC
EQUINIX INC
EQUITY RESIDENTIAL
ESTEE LAUDER COMPANIES INC
EVERSOURCE ENERGY
EXPEDIA, INC.
EXPRESS SCRIPTS HOLDING CO.
EXXON MOBIL CORP
F5 NETWORKS INC
FACEBOOK INC
FEDERAL REALTY INVESTMENT TRUST
FIDELITY NATIONAL INFORMATION SERVICES, INC.
FIRSTENERGY CORP
FLIR SYSTEMS INC
FLOWSERVE CORP
FLUOR CORP
FMC CORP
FMC TECHNOLOGIES INC
FOOT LOCKER INC
FORTIVE CORP
FORTUNE BRANDS HOME & SECURITY, INC.
FRANKLIN RESOURCES INC
GALLAGHER ARTHUR J & CO
GAP INC
GARMIN LTD
GENERAL ELECTRIC CO
GENUINE PARTS CO
GGP INC.
GOODYEAR TIRE & RUBBER CO /OH/
GRAINGER W W INC
H&R BLOCK INC
HALF ROBERT INTERNATIONAL INC /DE/
HANESBRANDS INC.
HARLEY DAVIDSON INC
HARRIS CORP /DE/
HCA HEALTHCARE, INC.
HCP, INC.
HELMERICH & PAYNE INC
HENRY SCHEIN INC
HESS CORP
HEWLETT PACKARD ENTERPRISE CO
HOLOGIC INC
HOME DEPOT INC
HORMEL FOODS CORP /DE/
HORTON D R INC /DE/
HP INC
HUMANA INC
HUNTINGTON BANCSHARES INC/MD
IDEXX LABORATORIES INC /DE
ILLUMINA INC
INTEL CORP
INTERCONTINENTAL EXCHANGE, INC.
INTERNATIONAL FLAVORS & FRAGRANCES INC
INTERNATIONAL PAPER CO /NEW/
INTERPUBLIC GROUP OF COMPANIES, INC.
INTUIT INC
INTUITIVE SURGICAL INC
INVESCO LTD.
JACOBS ENGINEERING GROUP INC /DE/
JOHNSON & JOHNSON
JOHNSON CONTROLS INTERNATIONAL PLC
KEYCORP /NEW/
KINDER MORGAN, INC.
KLA TENCOR CORP
KOHLS CORP
KRAFT HEINZ CO
KROGER CO
L 3 COMMUNICATIONS HOLDINGS INC
L BRANDS, INC.
LABORATORY CORP OF AMERICA HOLDINGS
LAM RESEARCH CORP
LEGGETT & PLATT INC
LENNAR CORP /NEW/
LEUCADIA NATIONAL CORP
LEVEL 3 COMMUNICATIONS INC
LILLY ELI & CO
LINCOLN NATIONAL CORP
LKQ CORP
LOCKHEED MARTIN CORP
LOWES COMPANIES INC
M&T BANK CORP
MALLINCKRODT PLC
MARATHON OIL CORP
MARATHON PETROLEUM CORP
MARRIOTT INTERNATIONAL INC /MD/
MARSH & MCLENNAN COMPANIES, INC.
MASTERCARD INC
MATTEL INC /DE/
MCCORMICK & CO INC
MCDONALDS CORP
MCKESSON CORP
MEAD JOHNSON NUTRITION CO
MEDTRONIC PLC
MERCK & CO. INC.
MICHAEL KORS HOLDINGS LTD
MICROCHIP TECHNOLOGY INC
MICRON TECHNOLOGY INC
MID AMERICA APARTMENT COMMUNITIES INC
MOHAWK INDUSTRIES INC
MOLSON COORS BREWING CO
MONSTER BEVERAGE CORP
MOODYS CORP /DE/
MORGAN STANLEY
MOSAIC CO
MOTOROLA SOLUTIONS, INC.
MYLAN N.V.
NATIONAL OILWELL VARCO INC
NETAPP, INC.
NEWELL BRANDS INC
NEWFIELD EXPLORATION CO /DE/
NEWS CORP
NEXTERA ENERGY INC
NIELSEN HOLDINGS PLC
NIKE INC
NISOURCE INC/DE
NORDSTROM INC
NORFOLK SOUTHERN CORP
NRG ENERGY, INC.
NVIDIA CORP
O REILLY AUTOMOTIVE INC
OCCIDENTAL PETROLEUM CORP /DE/
OMNICOM GROUP INC.
ONEOK INC /NEW/
PARKER HANNIFIN CORP
PATTERSON COMPANIES, INC.
PENTAIR PLC
PERKINELMER INC
PERRIGO CO PLC
PG&E CORP
PHILLIPS 66
PINNACLE WEST CAPITAL CORP
PPG INDUSTRIES INC
PRAXAIR INC
PRINCIPAL FINANCIAL GROUP INC
PROGRESSIVE CORP/OH/
PROLOGIS, INC.
PUBLIC SERVICE ENTERPRISE GROUP INC
PULTEGROUP INC/MI/
PVH CORP. /DE/
QORVO, INC.
QUANTA SERVICES INC
RALPH LAUREN CORP
RANGE RESOURCES CORP
RAYMOND JAMES FINANCIAL INC
RED HAT INC
REGENCY CENTERS CORP
REPUBLIC SERVICES, INC.
ROCKWELL AUTOMATION INC
ROCKWELL COLLINS INC
ROPER TECHNOLOGIES INC
ROYAL CARIBBEAN CRUISES LTD
RYDER SYSTEM INC
S&P GLOBAL INC.
SALESFORCE COM INC
SCANA CORP
SCHWAB CHARLES CORP
SCRIPPS NETWORKS INTERACTIVE, INC.
SEAGATE TECHNOLOGY PLC
SEALED AIR CORP/DE
SHERWIN WILLIAMS CO
SIGNET JEWELERS LTD
SKYWORKS SOLUTIONS, INC.
SL GREEN REALTY CORP
SOUTHERN CO
SOUTHWESTERN ENERGY CO
STAPLES INC
STARBUCKS CORP
STERICYCLE INC
SUNTRUST BANKS INC
SYMANTEC CORP
SYNCHRONY FINANCIAL
SYNOPSYS INC
SYSCO CORP
TEGNA INC
TERADATA CORP /DE/
TEXTRON INC
TIFFANY & CO
TJX COMPANIES INC /DE/
TRANSDIGM GROUP INC
TRANSOCEAN LTD.
TRIPADVISOR, INC.
ULTA BEAUTY, INC.
UNDER ARMOUR, INC.
UNITED CONTINENTAL HOLDINGS, INC.
UNITED PARCEL SERVICE INC
UNITED RENTALS INC /DE
UNIVERSAL HEALTH SERVICES INC
VARIAN MEDICAL SYSTEMS INC
VENTAS INC
VERISK ANALYTICS, INC.
VERIZON COMMUNICATIONS INC
VERTEX PHARMACEUTICALS INC / MA
VIACOM INC.
VISA INC.
VORNADO REALTY TRUST
VULCAN MATERIALS CO
WALGREENS BOOTS ALLIANCE, INC.
WALT DISNEY CO/
WATERS CORP /DE/
WEC ENERGY GROUP, INC.
WELLS FARGO & COMPANY/MN
WELLTOWER INC.
WESTROCK CO
WHIRLPOOL CORP /DE/
WHOLE FOODS MARKET INC
WILLIAMS COMPANIES INC
WILLIS TOWERS WATSON PLC
WYNN RESORTS LTD
XCEL ENERGY INC
XILINX INC
XYLEM INC.
YAHOO INC
ZIMMER BIOMET HOLDINGS, INC.
ZIONS BANCORPORATION /UT/

The following companies have not addressed ASU 2014-09 in the last 180 days. These companies did not mention “ASU 2014-09,” “Accounting Guidance Update,” “Accounting Pronouncements,” or any other disclosure addressing the ASU in their filings.

ENTERGY CORP /DE/
TORCHMARK CORP
TWENTY-FIRST CENTURY FOX, INC.
XL GROUP LTD

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