Pays Fair Share of Taxes

Does the company pay a reasonable amount of taxes? According to our 2015 Survey, 92% of Americans said that paying a fair share of taxes and not exploiting loopholes was important to measuring JUST leadership.

METRICS

Effective US Tax Rate

Description: The US tax rate is calculated by adding the US Federal and State taxes (both current and deferred) and dividing that by pre-tax income from the US only. To adjust for the new ASC 718 rules coming into effect next year (simplifying share-based compensation expense accounting), we retroactively add the excess tax benefit from share-based compensation to the numerator. We also bind the output to a range of between 0% and 60%, and then take the trailing five-year average of these tax rates.

Data Source(s): JUST analysis: Publicly available company documents
Metric Type: Performance
Geography: US
Unit of Measurement: Percent

Incorporated Outside the U.S.

Description: Whether the company is incorporated or reincorporated outside the U.S., while maintaining corporate headquarters and/or primary trading exchange in the U.S. Each company is assigned a score of either 0 for non-U.S. companies or 10 for U.S. companies based on jurisdiction or incorporation.

Data Source(s): Bloomberg
Metric Type: Performance
Geography: Global
Unit of Measurement: Score (0 or 10)