FORTUNE 500
Our annual ranking of America's largest corporations
FAQ Definitions and Explanations

Changes since publication

2007 FORTUNE 500 METHODOLOGY
Included in the survey are U.S. incorporated companies filing financial statements with a government agency. This includes private companies and cooperatives that file a 10-K and mutual insurance companies that file with state regulators. Excluded are private companies not filing with a government agency; companies incorporated outside the U.S.; companies owned or controlled by other U.S. companies that file with a government agency; and U.S. companies owned or controlled by foreign companies.

REVENUES
Revenues are as reported, including revenues from discontinued operations when they are published on a consolidated basis (except when the divested company's revenues equal 50% or more of the surviving company's revenues on an annualized basis). The revenues for commercial banks and savings institutions are interest and noninterest revenues. Revenues for insurance companies include premium and annuity income, investment income, and capital gains or losses but exclude deposits. Revenues figures for all companies include consolidated subsidiaries and exclude excise taxes. Data shown are for the fiscal year ended on or before Jan. 31, 2007. Unless otherwise noted, all figures are for the year ended Dec. 31, 2006.

PROFITS
Profits are shown after taxes; after extraordinary credits or charges, if any, that appear on the income statement; and after cumulative effects of accounting changes. Figures in parentheses indicate a loss. Profit declines of more than 100% reflect swings from 2005 profits to 2006 losses. Profits for real estate investment trusts, partnerships, and cooperatives are reported but are not comparable with those of the other companies on the list because they are not taxed on a comparable basis. Profits for mutual insurance companies are based on statutory accounting.

ASSETS
Assets are company's year-end total.

STOCKHOLDERS' EQUITY
Stockholders' equity is the sum of all capital stock, paid-in capital, and retained earnings at the company's year-end. Redeemable preferred stock whose redemption is either mandatory or outside the control of the company is excluded. Dividends paid on such stock have been subtracted from the profit figures used in calculating return on equity.

MARKET VALUE
The market-value figure shown was arrived at by multiplying the number of common shares outstanding by the price per common share as of March 23, 2007. If companies have more than one class of shares outstanding and an equivalent share number is not available, the respective market values for each share class are calculated and combined.

EARNINGS PER SHARE
The figure shown for each company is diluted earnings per share that appears on the income statement. The 1996 figure used for the ten-year earnings-growth calculation is diluted for companies whose fiscal year ended Dec. 31, 2006, or Jan. 31, 2007, but is primary earnings per share for companies whose fiscal year ended on or before Nov. 30, 2006. The reporting of diluted EPS started on Dec. 15, 1997, when the Financial Accounting Standards Board began to implement rule 128, requiring companies to change the way they report earnings per share. (In 1997, Fortune restated the 1996 earnings per share from primary to diluted for companies whose fiscal year ended after Dec. 15, 1997, to reflect the change.) Per share earnings are adjusted for stock splits and stock dividends. They are not restated for mergers, acquisitions, or accounting changes (other than FASB 128). Though earnings-per-share numbers are not marked by footnotes, if a company's profits are footnoted it can be assumed that earnings per share are affected as well. The five-year and ten-year earnings-growth rates are the annual rates, compounded.

TOTAL RETURN TO INVESTORS
Total return to investors includes both price appreciation and dividend yield to an investor in the company's stock. The figures shown assume sales at the end of 2006 of stock owned at the end of 1996, 2001, and 2005, respectively. It has been assumed that any proceeds from cash dividends and stock received in spinoffs were reinvested when they were paid. Returns are adjusted for stock splits, stock dividends, recapitalizations, and corporate reorganizations as they occur; however, no effort has been made to reflect the cost of brokerage commissions or of taxes. Results are not listed if shares are not publicly traded or are traded on a limited basis. If companies have more than one class of shares outstanding, only the most widely held and actively traded class has been considered. Total return percentages shown are the returns received by the hypothetical investor described above. The five-year and ten-year returns are the annual rates, compounded.

MEDIANS
The median figures in the tables refer only to results of companies in the Fortune 500 (or 1,000 for industry categories), and no attempt has been made to calculate them in groups of fewer than four companies. The medians for profit changes from 2005 do not include companies that lost money in 2005 or lost money in both 2005 and 2006, because no meaningful percentage changes can be calculated in such cases.

CREDITS
This Fortune 500 Directory was prepared under the direction of senior list editor L. Michael Cacace and senior reporter Richard K. Tucksmith. Income statement and balance sheet data were reviewed and verified against published earnings releases, 10-K filings, and annual reports by reporter Douglas G. Elam and accounting specialists Rhona Altschuler and Lora Martens. Market specialist Kathleen Smyth used the same sources to check earnings-per-share data. In addition, she used data provided by SunGard FAME to calculate total returns and market capitalization. Database administrator Larry Shine provided technical support. Glenis Mateo and Janice Chow assisted with data gathering and verification. The data verification process was aided by information provided by A.M. Best Co. on mutual insurance companies; by SNL Financial LC on commercial banks, savings banks, and real estate investment trusts; and by Mergent Inc., Thomson Corp., and 10-K Wizard on all companies filing 10-Ks.

CONTACTS
If you have further questions about the Fortune 500, please e-mail lists@cnnmoney.com.

CHANGES SINCE PUBLICATION

Acquisitions/Ownership changes:
• Realogy (rank: 354) was taken private by Apollo Management LP, effective April 10, 2007.
• Delta Air Lines (rank: 136) emerged from bankruptcy April 30, 2007, and began trading on the NYSE May 3 (ticker: DAL).
• Swift Transportation (Rank: 621) was taken private by founder Jerry Moyes, May 10, 2007.
• Kinder Morgan (Rank: 201) was taken private by a group led by CEO Richard Kinder, May 30, 2007.
• Northwest Airlines (Rank: 195) emerged from bankruptcy May 31, 2007, and began trading on the NYSE (ticker: NWA).
• Western Refining (Rank: 508) acquired Giant Industries (Rank: 509), May 31, 2007.
• OSI Restaurant Partners (Rank: 535) was taken private by a group led by Bain Capital and Chairman Chris Sullivan, June 14, 2007.
• Bank of New York (Rank: 209) acquired Mellon Financial Corp. (Rank: 358), June 29, 2007.
• S&C Holdco 3 (Rank: 268) was acquired by JBS S.A., Brazil, July 12, 2007.
• Community Health Systems (Rank: 494) acquired Triad Hospitals (Rank: 417), July 25, 2007.
• Tower Automotive (rank: 668) was taken private by Cerberus Capital Management LP, effective July 31, 2007.
• KeySpan (Rank: 326) was acquired by National Grid Plc, Aug. 24, 2007.
• Liberty Mutual Insurance Group (Rank: 95) acquired Ohio Casualty (Rank: 951), Aug. 24, 2007.
• Compass Bancshares (Rank: 686) was acquired by Banco Bilbao Vizcaya Argentaria, Spain, Sept. 7, 2007.
• First Data (Rank: 331) was taken private by KKR, Sept. 24, 2007.
• Biomet (Rank: 852) was taken private Sept. 25, 2007 by a consortium.
• A.G. Edwards (Rank: 687) was acquired by Wachovia Corp. (Rank: 46), Oct. 1, 2007.
• Laidlaw International (Rank: 629) was acquired by FirstGroup, Britain, Oct. 1, 2007.
• Solectron (Rank: 243) was acquired by Flextronics, Singapore, Oct. 1, 2007.
• TXU Corp. (Rank: 234) changed its name to Energy Future Holdings after acquisition by an investor group led by Kohlberg Kravis Roberts & Co., Texas Pacific Group, and Goldman Sachs Capital Partners, Oct. 10, 2007.
• CDW (Rank: 342) was taken private by an affiliate of Madison Dearborn Partners, LLC and Providence Equity Partners Inc., Oct. 12, 2007.
• Gateway (Rank: 529) was acquired by Acer, Taiwan, Oct. 16, 2007.
• Ryerson (Rank: 385) was taken private by Platinum Equity, Beverly Hills, Oct. 19, 2007.
• Hilton Hotels (Rank: 296) was acquired by The Blackstone Group, Oct. 24, 2007.
• Avaya (Rank: 440) was taken private by Silver Lake and TPG Capital, Oct. 26, 2007.
• Pogo Producing (Rank: 933) was acquired by Plains Exploration and Production Co., Nov. 6, 2007.
• Dade Behring Holdings (Rank: 938) was acquired by Siemens, Germany, Nov. 6, 2007.

CEO changes:
• Jeffrey R. Binder is CEO of Biomet (Rank: 852) effective Feb. 26, 2007, replacing interim CEO Daniel P. Hann.
• David C. Dvorak is CEO of Zimmer Holdings (rank: 576) effective May 1, 2007, replacing J. Raymond Elliott.
• Glen E. Tellock is CEO of Manitowoc (Rank: 662) effective May 1, 2007, replacing Terry D. Growcock (now chairman of the board).
• David Barger is CEO of Jetblue Airways (rank: 775) effective May 10, 2007, replacing David G. Neeleman.
• Michael W. Laphen is CEO of Computer Sciences (Rank: 163) effective May 21, 2007, replacing Van B. Honeycutt.
• Kent Hussey is CEO of Spectrum Brands (Rank: 729) effective May 23, 2007, replacing David A. Jones.
• Stephen F. Butterfield stepped down as co-CEO of Nelnet (Rank: 895) effective May 24, 2007 and is now vice chairman.
• Burke W. Whitman is CEO of Health Management Associates (Rank: 513) effective June 1, 2007, replacing Joseph V. Vumbacco.
• Angela F. Braly is CEO of WellPoint (Rank: 35) effective June 1, 2007, replacing Larry C. Glasscock.
• Brian C. Cornell is CEO of Michaels Stores (Rank: 541) effective June 4, 2007, replacing co-CEOs Jeffrey N. Boyer and Gregory A. Sandfort.
• David A. DeLorenzo is CEO of Dole Food (Rank: 367) effective June 5, 2007, replacing David H. Murdock.
• Jerry Yang is CEO of Yahoo (Rank: 357) effective June 18, 2007, replacing Terry S. Semel.
• John G. Stumpf is CEO of Wells Fargo (Rank: 41) effective June 27, 2007, replacing Richard M. Kovacevich.
• Paul M. Cofoni is CEO of CACI International (Rank: 932) effective July 1, 2007, replacing J. P. London.
• Dinesh Paliwal is CEO of Harman Intl. Industries (Rank: 612) effective July 1, 2007, replacing Sidney Harman.
• James W. Keyes is CEO of Blockbuster (Rank: 410) effective July 2, 2007, replacing John F. Antioco.
• Dennis R. Glass is CEO of Lincoln National (Rank: 277) effective July 6, 2007, replacing Jon A. Boscia.
• Wesley R. Card is CEO of Jones Apparel Group (Rank: 470) effective July 12, 2007, replacing Peter Boneparth.
• Robert S. Sands is CEO of Constellation Brands (Rank: 480) effective July 26, 2007, replacing Richard Sands.
• Glenn Murphy is CEO of Gap (Rank: 144) effective July 26, 2007, replacing Robert J. Fisher.
• Mark Makcolm is CEO of Tower Automotive (Rank: 668) effective July 31, 2007, replacing Kathleen A. Ligocki, after the company was taken private.
• Ralph S. Cunningham is CEO of Enterprise GP Holdings (Rank: 177) effective Aug. 1, 2007, replacing Michael A. Creel.
• Edward A. Mueller is CEO of Qwest Communications (Rank: 178) effective Aug. 12, 2007, replacing Richard C. Notebaert, who is retiring.
• COO Neil Berkett was named interim CEO of Virgin Media after Stephen A Burch resigned Aug. 21, 2007.
• James G. Carlson is CEO of Amerigroup (Rank: 676) effective Aug. 31, 2007, replacing Jeffrey L. McWaters, who is retiring.
• Richard H. Anderson is CEO of Delta Air Lines (Rank: 136) effective Sept. 1, 2007, replacing Gerald Grinstein, who is retiring.
• Ronald Rittenmeyer is CEO of Electronic Data Systems (Rank: 111) effective Sept. 1, 2007, replacing Michael H. Jordan, who is retiring.
• Timothy Wadhams is CEO of Masco (Rank: 190) effective Sept. 1, 2007, replacing Richard A. Manoogian.
• Michael D. Capellas is CEO of First Data (Rank: 331) replacing Henry C. Duques, effective Sept. 24, 2007 when the company was taken private by KKR.
• Kendall J. Powell is CEO of General Mills (Rank: 213) effective Sept. 24, 2007, replacing Stephen W. Sanger.
• Peter B. Delaney is CEO of OGE Energy (Rank: 523), replacing Steven E. Moore, who passed away Sept. 22, 2007.
• Chuck Crovitz is interim CEO of Children's Place Retail Stores, replacing Ezra Dabah, who resigned Sept. 26, 2007.
• Douglas J. Wall is CEO of Patterson-UTI Energy (Rank: 731), replacing CEO Cloyce A. Talbott, who retired Sept. 30, 2007.
• John E. McGlade is CEO of Air Products & Chemicals (Rank: 275) effective Oct. 1, 2007, replacing John P. Jones III.
• Stephen A. Roell is CEO of Johnson Controls (Rank: 67) effective Oct. 1, 2007, replacing John M. Barth.
• Paul Saleh is acting CEO of Sprint Nextel (Rank: 53), replacing Gary Forsee, who stepped down as CEO Oct. 8, 2007.
• After TXU Corp. (Rank: 234, now named Energy Future Holdings) was acquired by an investor group Oct. 10, 2007, CEO C. John Wilder resigned as CEO. Donald L. Evans becomes non-executive chairman.
• William D. Johnson is CEO of Progress Energy (Rank: 238) effective Oct. 12, 2007, replacing Robert B. McGehee, who died Oct. 9, 2007.
• Alan M. Bennett is interim CEO of H&R Block (Rank: 459) effective Oct. 20, 2007, replacing Mark A. Ernst.
• Chairman William E. Brown is CEO of Central Garden & Pet (Rank: 977) effective Oct. 22, 2007, replacing Glenn W. Novotny.
• Ryerson (Rank: 385) CEO Neil Novich resigned and was replaced by Robert Archambault, Oct. 24, 2007.
• Sir Win Bischoff is interim CEO of Citigroup (Rank: 8) effective Nov. 4, 2007, replacing CEO Charles O. Prince III.
• Shantanu Narayen is CEO of Adobe Systems (Rank: 727) effective Dec. 1, 2007, replacing Bruce R. Chizen.
• John A. Thain is CEO of Merrill Lynch (Rank: 22), effective Dec. 1, 2007, replacing E. Stanley O'Neal, who retired Oct. 31, 2007, and interim CEO Alberto Cribiore.
• Duncan L. Niederauer is CEO of NYSE Euronext (Rank: 771) effective Dec. 1, 2007, replacing John A. Thain, who is now CEO of Merrill Lynch.
• Robert L. Fornaro is CEO of Airtran Holdings (Rank: 888) effective Nov. 1, 2007, replacing Joseph B. Leonard.
• R. Jarrett Lilien is acting CEO of E*Trade Financial (Rank: 545), effective Nov. 29, 2007, replacing Mitchell H. Caplan.
• David J. West is CEO of Hershey (Rank: 453) effective Dec. 1, 2007, replacing Richard H. Lenny.
• CFO D. Scott Davis will become CEO of United Parcel Service (Rank: 43) at 2007 year-end, replacing Michael L. Eskew, who is retiring.
• Jeffrey L. Bewkes becomes CEO of Time Warner (Rank: 48) effective Jan. 1, 2008, replacing Richard D. Parsons, who is stepping down as CEO but remains chairman.
• Bernard Poussot becomes CEO of Wyeth (Rank: 113) effective Jan. 1, 2008, replacing Robert A. Essner.
• Alan D. Wilson is CEO of McCormick (Rank: 692) effective Jan. 1, 2008, replacing Robert J. Lawless, who is retiring.
• Brad D. Smith is scheduled to become CEO of Intuit (Rank: 776) effective Jan. 1, 2008, replacing CEO Stephen M. Bennett.
• Bruce A.Carbonari is CEO of Fortune Brands (Rank: 294) effective Jan. 1, 2008, replacing Norman H. Wesley.
• John R. Strangfeld becomes CEO of Prudential Financial (Rank: 66) effective Jan. 1, 2008, replacing Arthur F. Ryan, who is retiring.
• Frederick Waddell becomes CEO of Northern Trust Corp. (Rank: 490) effective Jun. 1, 2008, replacing William A. Osborn, who is stepping down.

Company name/ticker changes:
• Federated Department Stores (Rank: 76) changed its name to Macy's, effective June 1, 2007, and changed its NYSE ticker symbol from FD to M.
• United Auto Group (Rank: 205) changed its name to Penske Automotive Group, effective June 29, 2007, and changed its NYSE ticker symbol from UAG to PAG.
• Bank of New York Co. (Rank: 209) changed its name to Bank of New York Mellon Corp., effective July 2, 2007, after acquiring Mellon Financial Corp. (2006 rank: 358).
• Sun Microsystems (Rank: 187) changed its Nasdaq ticker symbol from SUNW to JAVA, effective August 27, 2007.
• Payless Shoesource (Rank: 682) changed its name to Collective Brands, Aug. 17, 2007.
• TXU Corp. (Rank: 234) changed its name to Energy Future Holdings after acquisition by an investor group led by Kohlberg Kravis Roberts & Co., Texas Pacific Group, and Goldman Sachs Capital Partners, Oct. 10, 2007.
• Bowater (Rank: 571, ticker: BOW) changed its name to AbitibiBowater (ticker: ABH), Oct. 29, 2007.
• American Standard (Rank: 223, ticker: ASD) changed its name to Trane (ticker: TT), Nov. 29, 2007.

Next: 2007 Fortune 500: Full List

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How the states stack up
New York 57
Texas 56
California 52
Best employers
These companies appear on both the FORTUNE 500 and our 2007 ranking of the Best Companies to Work For.
Valero Energy 22
Goldman Sachs Group 36
Procter & Gamble 68
Most profitable companies
Exxon Mobil 39,500
UAL 22,876
Citigroup 21,538
Best investments
Best Investments By Industry: Total Return to Shareholders (1 Year)
Metals 70.0
Airlines 59.2
Telecommunications 48.1
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.