FORTUNE 500 2006
Our annual ranking of America's largest corporations
FAQ Definitions and Explanations
The 2006 Fortune 500

Changes since publication


All companies on the list must publish financial data and must report part or all of their figures to a government agency. Private companies and cooperatives that produce a 10-K are, therefore, included; subsidiaries of foreign companies incorporated in the U.S. are excluded. Revenues are as reported, including revenues from discontinued operations when they are published on a consolidated basis (except when the divested company's revenues equal 50% or more of the surviving company's revenues on an annualized basis). The revenues for commercial banks and savings institutions are interest and noninterest revenues. Revenues for insurance companies include premium and annuity income, investment income, and capital gains or losses, but exclude deposits. Revenues figures for all companies include consolidated subsidiaries and exclude excise taxes. Data shown are for the fiscal year ended on or before Jan. 31, 2006. Unless otherwise noted, all figures are for the year ended Dec. 31, 2005.


Profits are shown after taxes, after extraordinary credits or charges, if any, appear on the income statement, and after cumulative effects of accounting changes. Figures in parentheses indicate a loss. Profit declines of more than 100% reflect swings from 2004 profits to 2005 losses. Profits for real estate investment trusts, partnerships, and cooperatives are reported but are not comparable with those of the other companies on the list because they are not taxed on a comparable basis. Profits for mutual insurance companies are based on statutory accounting.


Assets are company's year-end total.


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


The market-value figure shown was arrived at by multiplying the number of common shares outstanding by the price per common share as of March 17, 2006. If companies have more than one class of shares outstanding and an equivalent share number is not available, the respective market values for each share class are calculated and combined.


The figure shown for each company is diluted earnings per share that appears on the income statement. The reporting of diluted EPS started on Dec. 15, 1997, when the Financial Accounting Standards Board began to implement standard 128, requiring companies to change the way they report earnings per share. The 1995 figure used for the ten-year earnings-growth calculation is primary earnings per share. Per share earnings are adjusted for stock splits and stock dividends. They are not restated for mergers, acquisitions, or accounting changes (other than FASB 128). Though earnings-pershare 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 includes both price appreciation and dividend yield to an investor in the company's stock. The figures shown assume sales at the end of 2005 of stock owned at the end of 1995, 2000, and 2004, respectively. It has been assumed that any proceeds from cash dividends and stock received in spinoffs were reinvested when they were paid. Returns are adjusted for stock splits, stock dividends, recapitalizations, and corporate reorganizations as they occur; however, no effort has been made to reflect the cost of brokerage commissions or of taxes. Results are not listed if shares are not publicly traded or are traded on a limited basis. If companies have more than one class of shares outstanding, only the most widely held and actively traded class has been considered. Total return percentages shown are the returns received by the hypothetical investor described above. The five-year and ten-year returns are the annual rates, compounded.


The median figures in the tables refer only to results of companies in the FORTUNE 500 (or 1,000 for industry categories), and no attempt has been made to calculate them in groups of fewer than four companies. The medians for profit changes from 2004 do not include companies that lost money in 2004 or lost money in both 2004 and 2005, because no meaningful percentage changes can be calculated in such cases.


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


Company names:
• Host Marriott (rank: 502) changed its name to Host Hotels & Resorts, effective April 17, 2006.
• CNF (rank: 481) changed its name to Con-way, effective April 18, 2006.
• Outback Steakhouse (rank: 529) changed its name to OSI Restaurant Partners, effective April 25, 2006.
• Cooper Cameron (rank: 685) changed its name to Cameron International, effective May 5, 2006.
• Amerada Hess (rank: 88) changed its name to Hess, effective May 9, 2006.
• ITT Industries (rank: 291) changed its name to ITT Corp., effective July 1, 2006.
• Cendant (rank: 114) changed its name to Avis Budget Group, and its ticker to CAR, effective September 1, 2006.

Acquisitions/Ownership changes:
• Burlington Resources (rank: 298) was acquired by ConocoPhillips, March 31, 2006.
• Hughes Supply (rank: 400) was acquired by Home Depot, March 31, 2006.
• Renal Care Group (rank: 939) was acquired by Fresenius Medical Care, Hamburg, Germany, March 31, 2006.
• Maytag (rank: 435) was acquired by Whirlpool, April 1, 2006.
• Jefferson Pilot (rank: 478) was acquired by Lincoln National, April 3, 2006.
• Cinergy (rank: 398) was acquired by Duke Energy, April 3, 2006.
• Earl M. Jorgensen (rank: 927) was acquired by Reliance Steel & Aluminum, April 3, 2006.
• UICI (rank: 773) was taken private by Blackstone Group , April 4, 2006.
• Burlington Coat Factory (rank: 580) was taken private by Bain Capital Partners, April 13, 2006.
• Chiron (rank: 828) was acquired by Novartis, Switzerland, April 19, 2006.
• Guidant (rank: 535) was acquired by Boston Scientific, April 21, 2006.
• Maxtor (rank: 507) was acquired by Seagate Technology, May 22, 2006.
• Albertson's (rank: 47) was acquired by Supervalu, CVS and Cerberus Capital Management, June 2, 2006.
• UICI (rank: 773) was taken private by Blackstone Group, April 4, 2006.
• Burlington Coat Factory (rank: 580) was taken private by Bain Capital, April 13, 2006.
• Sports Authority (rank: 690) was taken private by Leonard Green & Partners, May 3, 2006.
• Russell (rank: 996) was acquired by Berkshire Hathaway, August 06, 2006.

• R. Kerry Clark is CEO of Cardinal Health (rank: 19) effective April 17, 2006, replacing Robert D. Walter.
• Kerrii B. Anderson is interim CEO of Wendy's (rank: 516) effective April 17, 2006, replacing Jack Schuessler.
• Lee Schram is CEO of Deluxe (rank: 873) effective April 17, 2006, replacing Ronald E. Eilers.
• Jonathan Schwartz is CEO of Sun Microsystems (rank: 211) effective April 24, 2006, replacing Scott McNealy.
• Patricia A. Woertz is CEO of Archer Daniels Midland (rank: 56) effective April 28, 2006, replacing G. Allen Andreas.
• David J. Paterson is CEO of Bowater (rank: 544) effective May 1, 2006, replacing Arnold M. Nemirow.
• John Brock becomes CEO of Coca-Cola Enterprises (rank: 120) effective May 15, 2006, replacing Lowry F. Kline.
• Jeffrey A. Rein becomes CEO of Walgreen (rank: 45) July 12, 2006, replacing David W. Bernauer.
• Steven Davis is CEO of Bob Evans Farms (rank: 985) effective May 2, 2006, replacing Larry Korbin (interim since August 2005) and Stewart Owens.
• Robert Mattschullat is CEO of Clorox (rank: 460) effective May 3, 2006, replacing Gerald Johnston.
• James E. Hohmann is CEO of Conseco (rank: 472) effective May 23, 2006, replacing William S. Kirsch.
• Arthur C. Martinez is CEO of Int'l. Flavors & Fragrances (rank: 812) effective May 10, 2006, replacing Richard A. Goldstein.
• J. Patrick Spainhour is CEO of ServiceMaster (rank: 494) effective May 16, 2006, replacing Jonathan P. Ward.
• Thomas Folliard is CEO of CarMax (rank: 411) effective June 21, 2006, replacing Austin Ligon.
• Robert J. Myers is CEO of Casey's General Stores (rank: 696) effective June 20, 2006, replacing Ronald M. Lamb.
• Julian Day is CEO of RadioShack (rank: 423) effective July 7, 2006, replacing Ms. Claire Babrowski.
• George L. Jones is CEO of Borders Group (rank: 490) effective July 13, 2006, replacing Greg Josefowicz.
• W. Howard Lester is CEO of Williams-Sonoma (rank: 537) effective July 14, 2006, replacing Ed Mueller.
• Bill Leonard is interim CEO of Pep Boys (rank: 752) effective July 18, 2006, replacing Larry Stevenson.
• Eric J. Foss is CEO of Pepsi Bottling (rank: 192) effective July 20, 2006, replacing John Cahill.
• Darrell Webb is CEO of Jo-Ann Stores (rank: 839) effective July 24, 2006, replacing Alan Rosskamm.
• Louis J. D'Ambrosio is CEO of Avaya (rank: 434) effective July 24, 2006, replacing Donald K. Peterson.
• Jeffrey B. Kindler is CEO of Pfizer (rank: 31) effective July 28, 2006, replacing Henry A. McKinnell, Jr.
• Byron O. Pond is CEO of Cooper Tire & Rubber (rank: 770) effective August 3, 2006, replacing Thomas Dattilo.
• Alan R. Mulally is CEO of Ford Motor Company (rank: 5) effective September 5, 2006, replacing William Clay Ford, Jr.
• Philippe P. Dauman is CEO of Viacom (rank: 241) effective September 5, 2006, replacing Thomas E. Freston.
• Russell P. Fradin is CEO of Hewitt Assoc. (rank: 633) effective September 5, 2006, replacing Dale L. Gifford.
• C. James Prieur is CEO of Conseco (rank: 472) effective September 7, 2006, replacing James E. Hohmann.

Next: 2006 Fortune 500: Full List Top of page

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New York 55
California 52
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These companies appear on both the FORTUNE 500 and our 2006 ranking of the Best Companies to Work For.
FedEx 212,241
Intel 48,655
Starbucks 91,056
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Citigroup 24,589.0
Bank of America Corp. 16,465.0
Best investments
Best Investments By Industry: Total Return to Shareholders (1 Year)
Petroleum Refining 60.7%
Mining, Crude-Oil Production 53.6%
Oil and Gas Equipment, Services 51.6%
Women CEOs of FORTUNE 500 companies
Andrea JungThere are more women running FORTUNE 500 companies this year than there were last year. Currently, 10 FORTUNE 500 companies are run by women (up from 9 last year), and a total of 20 FORTUNE 1000 companies have women in the top job (up from 19). (more)