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entitled 'International Taxation: Large U.S. Corporations and Federal 
Contractors with Subsidiaries in Jurisdictions Listed as Tax Havens or 
Financial Privacy Jurisdictions' which was released on January 16, 2009.

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Report to Congressional Requesters: 

United States Government Accountability Office: 
GAO: 

December 2008: 

International Taxation: 

Large U.S. Corporations and Federal Contractors with Subsidiaries in 
Jurisdictions Listed as Tax Havens or Financial Privacy Jurisdictions: 

GAO-09-157: 

GAO Highlights: 

Highlights of GAO-09-157, a report to congressional requesters. 

Why GAO Did This Study: 

Many U.S. corporations operate globally and have foreign subsidiaries. 
The subsidiaries may be created, for example, to take advantage of 
sales opportunities or favorable labor conditions. In some cases they 
may be used to reduce taxes. GAO was asked to update its 2004 report on 
large federal contractors with subsidiaries in countries sometimes 
called tax havens because of low taxes and a general lack of 
transparency. 

In response, GAO determined how many of the 100 largest publicly traded 
U.S. corporations and the 100 largest publicly traded U.S. federal 
contractors have subsidiaries in jurisdictions listed as tax havens or 
financial privacy jurisdictions. 

GAO (1) combined three lists of such jurisdictions created by 
governmental, international, and academic sources and (2) identified 
large publicly traded U.S. corporations and federal contractors and the 
locations of their subsidiaries using the Fortune 500 list, a federal 
contracting Web site, and a Securities and Exchange Commission (SEC) 
database. 

What GAO Found: 

Eighty-three of the 100 largest publicly traded U.S. corporations in 
terms of 2007 revenue reported having subsidiaries in jurisdictions 
listed as tax havens or financial privacy jurisdictions. Sixty-three of 
the 100 largest publicly traded U.S. federal contractors in terms of 
fiscal year 2007 federal contract obligations reported having 
subsidiaries in such jurisdictions. Since subsidiaries may be 
established in listed jurisdictions for a variety of nontax business 
reasons, the existence of a subsidiary in a jurisdiction listed as a 
tax haven or financial privacy jurisdiction does not signify that a 
corporation or federal contractor established that subsidiary for the 
purpose of reducing its tax burden. GAO did not attempt to determine if 
corporations or contractors with subsidiaries in such jurisdictions 
engaged in transactions with their subsidiaries to reduce their tax 
burden. In addition, the SEC only requires public corporations to 
report significant subsidiaries, so the number of subsidiaries in 
jurisdictions listed as tax havens or financial privacy jurisdictions 
for each corporation or federal contractor may be understated in this 
report. 

There is no agreed-upon definition of a tax haven or agreed-upon list 
of jurisdictions that should be considered tax havens. However, various 
governmental, international, and academic sources used similar 
characteristics to define and identify tax havens. Some of the 
characteristics included no or nominal taxes; a lack of effective 
exchange of information with foreign tax authorities; and a lack of 
transparency in legislative, legal, or administrative provisions. A few 
sources used terms such as offshore financial centers or financial 
privacy jurisdictions to refer to jurisdictions with similar 
characteristics. Based on a review of a variety of sources, GAO 
identified three lists of tax havens or financial privacy 
jurisdictions. The three sources GAO used are (1) the Organization for 
Economic Co-operation and Development, (2) a National Bureau of 
Economic Research working paper, and (3) a U.S. District Court order 
granting leave for the Internal Revenue Service to serve a “John Doe” 
summons. GAO combined the three lists into one for the purposes of this 
report. GAO did not develop its own definition of tax haven or its own 
list of jurisdictions. 

In commenting on a draft of this report, the Department of the Treasury 
expressed concerns about GAO using a list of tax havens or financial 
privacy jurisdictions because there is no agreed-upon definition of tax 
havens or list of jurisdictions. However, GAO noted that there is no 
agreed-upon definition or list and also noted that the jurisdictions on 
the three lists used have similar characteristics. Further, background 
for one list said that industry analysts recognize them as offshore tax 
haven or financial privacy jurisdictions and that they are promoted as 
such.
 
To view the full product, including the scope and methodology, click on 
GAO-09-157. For more information, contact James R. White at (202) 512-
9110 or whitej@gao.gov. 

[End of section] 

Contents: 

Letter: 

Results: 

Agency Comments and Our Evaluation: 

Appendix I: Objectives, Scope, and Methodology: 

Appendix II: The 100 Largest Publicly Traded U.S. Corporations: 

Appendix III: The 100 Largest Publicly Traded U.S. Federal Contractors: 

Appendix IV: Comments from the Department of the Treasury: 

Appendix V: Comments from the Internal Revenue Service: 

Appendix VI: GAO Contact and Staff Acknowledgments: 

Table: 

Table 1: Jurisdictions Listed as Tax Havens or Financial Privacy 
Jurisdictions and the Sources of Those Jurisdictions: 

Abbreviations: 

[End of section] 

EDGAR: Electronic Data Gathering, Analysis, and Retrieval database: 

FPDS-NG: Federal Procurement Data System-Next Generation: 

FSF: Financial Stability Forum: 

IMF: International Monetary Fund: 

IRS: Internal Revenue Service: 

NBER: National Bureau of Economic Research: 

OECD: Organization for Economic Co-operation and Development: 

SEC: Securities and Exchange Commission: 

TIEA: Tax Information Exchange Agreement: 

[End of section] 

United States Government Accountability Office: 
Washington, DC 20548: 

December 18, 2008: 

The Honorable Carl Levin: 
Chairman: 
Permanent Subcommittee on Investigations: 
Committee on Homeland Security and Governmental Affairs: 
United States Senate: 

The Honorable Byron L. Dorgan: 
United States Senate: 

Today, corporations operate in a global economy and most of the largest 
U.S. corporations have subsidiaries in other countries. Corporations 
have foreign subsidiaries for a variety of business reasons, including 
reasons related to taxes. For example, a corporation may establish a 
foreign subsidiary to take advantage of sales opportunities, natural 
resources, or favorable labor conditions. In some cases, U.S. taxpayers 
aggressively interpret U.S. tax law relating to foreign subsidiaries. 
For example, the Department of the Treasury (Treasury) has found that 
some U.S. corporations have aggressively set transfer prices[Footnote 
1] to move income to offshore jurisdictions to avoid U.S. taxes. 
[Footnote 2] Some offshore jurisdictions have no or nominal taxes and 
are sometimes referred to as tax havens. In addition, we previously 
reported that in 2004, for U.S. multinational corporations generally 
the share of business activities related to income that are more likely 
to be affected by income-shifting practices[Footnote 3] was 
significantly larger in countries with relatively low effective tax 
rates than the share of business activities that were least likely to 
be affected by income-shifting practices (physical assets, 
compensation, and employment).[Footnote 4] 

Because of your interest in U.S. corporations that have subsidiaries in 
tax havens and possible tax avoidance, you asked us to provide 
information about those corporations as well as update similar 
information about federal contractors that we reported in 2004. 
[Footnote 5] In this report, as in our previous report, we did not 
attempt to develop a list of tax havens. Instead, we reviewed various 
governmental, international, and academic sources addressing offshore 
business activity. We did not find an agreed-upon definition of a tax 
haven or an agreed-upon list of the jurisdictions that should be 
considered tax havens, but the sources we reviewed used similar 
characteristics to define and identify tax havens.[Footnote 6] In 
addition, a few sources used similar characteristics to describe 
offshore financial centers or financial privacy jurisdictions.[Footnote 
7] For the purposes of this report, we combined lists of jurisdictions 
from three sources and, for brevity purposes, will refer to the 
jurisdictions as jurisdictions listed as tax havens or financial 
privacy jurisdictions. We did not develop our own definition of a tax 
haven or our own list of jurisdictions. Our objectives in this report 
were to: 

* determine how many of the 100 largest publicly traded U.S. 
corporations in terms of revenue have subsidiaries in jurisdictions 
listed as tax havens or financial privacy jurisdictions and the amount 
of federal contract obligations these corporation have, if any, and: 

* determine how many of the 100 largest publicly traded U.S. federal 
contractors in terms of contract obligations have subsidiaries in 
jurisdictions listed as tax havens or financial privacy jurisdictions. 

The three sources we used for jurisdictions listed as tax havens or 
financial privacy jurisdictions are (1) the Organization for Economic 
Co-operation and Development's (OECD) list of committed jurisdictions 
and uncooperative tax havens,[Footnote 8] (2) a National Bureau of 
Economic Research (NBER) working paper[Footnote 9] list of tax havens, 
and (3) a U.S. District Court order[Footnote 10] granting leave for the 
Internal Revenue Service (IRS) to serve a "John Doe" summons that 
included a list of offshore tax haven or financial privacy 
jurisdictions.[Footnote 11] We combined the jurisdictions on the OECD, 
NBER, and John Doe summons lists because we did not have a basis for 
excluding any of the identified jurisdictions, resulting in a list of 
50 tax haven or financial privacy jurisdictions. 

We used the 2008 Fortune 500 list,[Footnote 12] data from 
USASpending.gov, the Federal Procurement Data System-Next Generation 
(FPDS-NG),[Footnote 13] and contractor's Web sites to identify the 100 
largest publicly traded U.S. corporations and U.S federal contractors 
and the amount of federal contract obligations. We assessed the 
reliability of USASpending.gov and FPDS-NG and determined that the data 
were sufficiently reliable for determining the general extent of 
federal contract obligations. We used the Securities and Exchange 
Commission's (SEC) Electronic Data Gathering, Analysis, and Retrieval 
database to determine where corporations reported having significant 
subsidiaries. Our scope and methodology, including the basis for the 
list of 50 jurisdictions listed as tax havens or financial privacy 
jurisdictions, are described in greater detail in appendix I. 

Results: 

Eighty-three of the 100 largest publicly traded U.S. corporations in 
terms of 2007 revenue reported having subsidiaries[Footnote 14] in 
jurisdictions listed as tax havens or financial privacy jurisdictions 
and 74 of the 83 had federal contracts in fiscal year 2007. For the 74 
corporations, the amount of the federal contract obligations ranged 
from $12,000 to over $23 billion. Additional details about these 
corporations include the following: 

* Eighty-six of the 100 corporations had foreign subsidiaries and 14 
did not. Eighty-three of the 86 corporations had subsidiaries in 
locations other than jurisdictions listed as tax havens or financial 
privacy jurisdictions. 

* Four of the 83 corporations that had subsidiaries in jurisdictions 
listed as tax havens or financial privacy jurisdictions had more than 
100 subsidiaries in such jurisdictions. 

* For the 83 corporations with subsidiaries in jurisdictions listed as 
tax havens or financial privacy jurisdictions, the number of such 
subsidiaries ranged from 1 for nine corporations to a high of 427 for 
one corporation. 

* Twelve corporations had more than 50 percent of their foreign 
subsidiaries in jurisdictions listed as tax havens or financial privacy 
jurisdictions. Three of these 12 only had one foreign subsidiary. 

* Corporations had subsidiaries in 36 of the 50 jurisdictions listed as 
tax havens or financial privacy jurisdictions. 

* Eight jurisdictions listed as tax havens or financial privacy 
jurisdictions had more than 100 corporate subsidiaries, ranging from 
123 to 569. For the jurisdiction with 569 subsidiaries, 372 were owned 
by four corporations. 

* Thirty-four of the 100 corporations are also on the list of 100 
largest publicly traded U.S. federal contractors. 

Sixty-three of the 100 largest publicly traded U.S. federal contractors 
in terms of fiscal year 2007 contract obligations reported having 
subsidiaries in jurisdictions listed as tax havens or financial privacy 
jurisdictions, 34 did not, and 3 did not provide information about the 
locations of all of their subsidiaries. The following additional 
details about the federal contractors are based on the 97 contractors 
that provided complete information. 

* Seventy-two of the 97 federal contractors had foreign subsidiaries 
and 25 did not. Sixty-nine of the 72 contractors also had subsidiaries 
in locations other than jurisdictions listed as tax havens or financial 
privacy jurisdictions. 

* For the 63 federal contractors with subsidiaries in jurisdictions 
listed as tax havens or financial privacy jurisdictions, the number of 
such subsidiaries ranged from 1 for 11 contractors to a high of 83 for 
1 contractor. 

* Four federal contractors had more than 50 percent of their foreign 
subsidiaries in jurisdictions listed as tax havens or financial privacy 
jurisdictions. Three of the four had all of their foreign subsidiaries 
in such jurisdictions. 

* Federal contractors had subsidiaries in 34 of the 50 jurisdictions 
listed as tax havens or financial privacy jurisdictions. 

* Five of the jurisdictions listed as tax havens or financial privacy 
jurisdictions had more than 100 federal contractor subsidiaries, 
ranging from 111 to 156. 

* Thirty-four of the 100 federal contractors are also on the list of 
100 largest publicly traded U.S. corporations. 

For a list of the 100 largest publicly traded U.S. corporations in 
terms of 2007 revenues, the amount of their fiscal year 2007 federal 
contract obligations, the number of foreign subsidiaries, the number of 
foreign subsidiaries located in jurisdictions listed as tax havens or 
financial privacy jurisdictions, and the locations of those 
subsidiaries, see appendix II. For a list of the 100 largest publicly 
traded U.S. federal contractors in terms of fiscal year 2007 contract 
obligations, number of foreign subsidiaries, the number of foreign 
subsidiaries located in jurisdictions listed as tax havens or financial 
privacy jurisdictions, and the location of those subsidiaries, see 
appendix III. 

The existence of a subsidiary in a jurisdiction listed as a tax haven 
or financial privacy jurisdiction does not signify that a corporation 
or contractor established that subsidiary for the purpose of reducing 
its tax burden. We did not attempt to determine if corporations or 
contractors engaged in transactions with their subsidiaries in order to 
reduce their tax burden. 

Agency Comments and Our Evaluation: 

Treasury's Deputy Assistant Secretary for International Tax Affairs 
provided written comments on a draft of this report on December 9, 
2008, and those comments are reprinted in appendix IV. He wrote that 
Treasury takes offshore tax evasion very seriously and has taken strong 
administrative and regulatory steps to address the problem. However, 
the Deputy Assistant Secretary raised concerns about our use of a list 
of tax havens and financial privacy jurisdictions because, as we noted 
in the report, there is no agreed-upon definition of tax havens or list 
of jurisdictions. He added that we did indeed produce such a list by 
combining three lists prepared by others. He also stated that the lack 
of consensus results from the fact that determining which jurisdictions 
are tax havens may depend on whether the issue of interest concerns 
individual or corporate taxpayers. 

In order to respond to Congress's interest in learning about the extent 
to which U.S. corporations and federal contractors have subsidiaries in 
jurisdictions listed as tax havens or financial privacy jurisdictions, 
we needed a list of such jurisdictions. We combined three lists of 
jurisdictions listed as tax havens or financial privacy jurisdictions 
prepared by others. We also stated in our report that we did not 
develop our own definition of a tax haven or our own list of 
jurisdictions. However, even though there is no agreed-upon definition, 
we combined the three lists because the sources used similar 
characteristics to define and identify tax havens or financial privacy 
jurisdictions and there was substantial overlap between the countries 
on the lists. Of the 50 jurisdictions included in this report, 24 are 
on all three lists, 14 are on two of the lists, and 12 are on one list. 
We did not exclude any of the identified jurisdictions because we did 
not have a basis for doing so. 

The Deputy Assistant Secretary specifically questioned our use of two 
of the three lists--the OECD list and the list of jurisdictions 
included in an IRS "John Doe" summons. The Deputy Assistant Secretary 
said that the majority of countries have committed to meeting OECD 
standards and many have signed tax information exchange agreements with 
the United States. He found it surprising that we used the lack of an 
updated list as the rationale for using what he characterized as the 
2000 OECD list. We used an OECD list that was included in a May 3, 
2007, written testimony by the Director, OECD Center for Tax Policy and 
Administration, before the Senate Finance Committee, which referred to 
the OECD 2000 list. We updated the May 2007 list based on information 
on OECD's Web site. The Director of OECD's Centre for Tax Policy and 
Administration acknowledged in a letter to GAO that OECD and others 
have not provided a clear picture of which countries are making 
progress toward meeting those commitments and which are not. Lacking an 
unambiguous identification of the countries making or not making 
progress, we included all of the countries on the updated OECD list 
because we could not determine which countries are currently meeting 
OECD standards. 

Regarding our use of the jurisdictions identified in IRS's "John Doe" 
summons, the Deputy Assistant Secretary noted that the list of 
jurisdictions in the summons was put together for the specific purpose 
of seeking information about individuals who had signature authority 
over bank accounts or credit cards issued by financial institutions in 
those jurisdictions and was not intended to suggest a general list of 
jurisdictions that Treasury and IRS considered tax havens. He wrote 
that it was unclear how the list of countries in the "John Doe" summons 
was relevant to our report because the problems addressed in our report 
and the summons are so different. We used the identified jurisdictions 
because, as pointed out in appendix I, the declaration of an IRS agent 
in support of the summons, which was granted by a U.S. District Court, 
stated that the jurisdictions included in the summons "are all 
recognized as principal offshore tax haven or financial privacy 
jurisdictions by industry analysts and are actively marketed as such by 
promoters of offshore schemes." 

Finally, the Deputy Assistant Secretary expressed concern that the list 
of jurisdictions in our report could be regarded as a blacklist and may 
be used as the basis for the imposition of sanctions or other negative 
measures. Our report provides information to Congress about the extent 
to which U.S. corporations and federal contractors have subsidiaries in 
jurisdictions listed as tax havens or financial privacy jurisdictions. 
It does not make recommendations about changes to U.S. tax, economic, 
or foreign policy. As noted in the report, corporations have 
subsidiaries in such jurisdictions for a variety of business reasons, 
including reasons related to taxes. 

The Commissioner of Internal Revenue provided written comments on a 
draft of this report in a December 11, 2008, letter which is reprinted 
in appendix V. The Commissioner wrote that international tax issues are 
some of the most complex that IRS confronts and that he has made these 
a top priority in addition to IRS's continued efforts to combat 
offshore tax evasion. In addition, he welcomed the support provided by 
independent research and analysis that complements IRS's initiatives in 
this area and expressed his appreciation of our work on this report and 
this topic in general. The SEC provided oral comments of a technical 
nature that were incorporated into our report. 

As agreed with your offices, unless you publicly announce its contents 
earlier, we plan no further distribution of this report until 30 days 
after its date. At that time, we will send copies of this report to the 
Secretary of the Treasury, the Commissioner of Internal Revenue, the 
Chairman of the Securities and Exchange Commission, and other 
interested parties. The report also will be available at no charge on 
GAO's Web site at [hyperlink, http://www.gao.gov]. 

If any of your staff have any questions, please contact me at (202) 512-
9110 or whitej@gao.gov. Contact points for our Offices of Congressional 
Relations and Public Affairs may be found on the last page of this 
report. Key contributors to this report are listed in appendix VI. 

Signed by: 

James R. White: 
Director, Tax Issues Strategic Issues Team: 

[End of section] 

Appendix I: Objectives, Scope, and Methodology: 

We had two objectives. Our first objective was to determine how many of 
the 100 largest publicly traded U.S. corporations in terms of revenue 
have subsidiaries in jurisdictions listed as tax havens or financial 
privacy jurisdictions and the amount of federal contract obligations 
these corporations have, if any. Our second objective was to determine 
how many of the 100 largest publicly traded U.S. federal contractors in 
terms of contract obligations have subsidiaries in jurisdictions listed 
as tax havens or financial privacy jurisdictions. We did not determine 
if corporations or contractors with subsidiaries in jurisdictions 
listed as tax havens or financial privacy jurisdictions engaged in 
transactions or took other actions with regard to their subsidiaries in 
order to reduce their tax burden. Subsidiaries may be established in 
listed jurisdictions for a variety of nontax business reasons. For both 
objectives, we reviewed and analyzed relevant documents and interviewed 
Department of the Treasury, Internal Revenue Service (IRS), and 
Securities and Exchange Commission (SEC) officials. 

Identifying Jurisdictions Listed as Tax Havens or Financial Privacy 
Jurisdictions: 

To address both objectives, we needed to identify jurisdictions that 
have been listed as tax havens or financial privacy jurisdictions. For 
this report as in our 2004 report on federal contractors with offshore 
subsidiaries, we did not attempt to develop a list of such 
jurisdictions.[Footnote 15] Instead, to find sources that may identify 
such jurisdictions, we searched numerous governmental, international, 
and academic Internet sites using various key words or phrases. 
Examples of sites searched include those of the Department of the 
Treasury, IRS, the Congressional Budget Office, the Congressional 
Research Service, the Organization for Economic Co-operation and 
Development (OECD),[Footnote 16] the International Monetary Fund (IMF), 
the Financial Stability Forum (FSF),[Footnote 17] the World Bank, 
EconLit, F&S Index (a global index of financial publications), Tax 
Notes, and sites that include excerpts from legislative documents, such 
as bills or committee reports. Examples of key words or phrases 
searched include tax havens, offshore tax havens, secrecy 
jurisdictions, offshore secrecy jurisdictions, and offshore financial 
centers. Our review of these sites did not find an agreed-upon 
definition for a tax haven or an agreed-upon list of jurisdictions that 
should be considered tax havens. However, the sources we reviewed used 
similar characteristics to define and identify tax havens, including no 
or nominal taxes; lack of effective exchange of tax information with 
foreign tax authorities; lack of transparency in the operation of 
legislative, legal, or administrative provisions; no requirement for a 
substantive local presence; and self-promotion as an offshore financial 
center. In addition, a few sources used characteristics similar to 
those used in describing tax havens to describe offshore financial 
centers[Footnote 18] or financial privacy jurisdictions.[Footnote 19] 
For brevity purposes, we referred to the jurisdictions included in our 
report as jurisdictions listed as tax havens or financial privacy 
jurisdictions. 

Based on our research, we identified the following three lists of 
jurisdictions considered to be tax havens or financial privacy 
jurisdictions.[Footnote 20] 

* OECD's list of committed jurisdictions and uncooperative tax havens. 
[Footnote 21] 

* A National Bureau of Economic Research (NBER) working paper,[Footnote 
22] which included a list of tax havens that was based on research 
summarized in an article in The Quarterly Journal of Economics. 
[Footnote 23] 

* A U.S. District Court order granting leave for IRS to serve a "John 
Doe" summons,[Footnote 24] which included a list of jurisdictions that 
are recognized as offshore tax haven or financial privacy 
jurisdictions[Footnote 25] by industry analysts and are actively 
promoted as such by promoters of offshore schemes.[Footnote 26] 

We combined the jurisdictions on the three lists because we did not 
have a basis for excluding any of the identified jurisdictions. This 
resulted in a list of 50 jurisdictions listed as tax havens or 
financial privacy jurisdictions. The 50 jurisdictions as well as the 
sources for the jurisdictions are shown in table 1. Of the 50 
jurisdictions, 24 are on all three lists, 14 are on two of the lists, 
and 12 are on one list. 

Table 1: Jurisdictions Listed as Tax Havens or Financial Privacy 
Jurisdictions and the Sources of Those Jurisdictions: 

Jurisdiction: Andorra; 
OECD: [Check][A]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Anguilla; 
OECD: [Check]; 
NBER: [Check]; U.S. 
District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Jurisdiction: Antigua and Barbuda; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][B]. 

Jurisdiction: Aruba; 
OECD: [Check]; 
NBER: [Empty]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][B]. 

Jurisdiction: Bahamas; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][B]. 

Jurisdiction: Bahrain; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Barbados; 
OECD: [Empty]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][B]. 

Jurisdiction: Belize; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Jurisdiction: Bermuda; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][B, C]. 

Jurisdiction: British Virgin Islands; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][D]. 

Jurisdiction: Cayman Islands; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][B]. 

Jurisdiction: Cook Islands; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Jurisdiction: Costa Rica; 
OECD: [Empty]; 
NBER: [Empty]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][B]. 

Jurisdiction: Cyprus; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][C]. 

Jurisdiction: Dominica; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][B]. 

Jurisdiction: Gibraltar; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Jurisdiction: Grenada; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][B]. 

Jurisdiction: Guernsey; 
OECD: [Check]; 
NBER: [Check][D]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][B, E]. 

Jurisdiction: Hong Kong; 
OECD: [Empty]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Jurisdiction: Ireland; 
OECD: [Empty]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Isle of Man; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][B]. 

Jurisdiction: Jersey; 
OECD: [Check]; 
NBER: [Check][D]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][B]. 

Jurisdiction: Jordan; 
OECD: [Empty]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Latvia; 
OECD: [Empty]; 
NBER: [Empty]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][C]. 

Jurisdiction: Lebanon; 
OECD: [Empty]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Liberia; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Liechtenstein; 
OECD: [Check][A]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Jurisdiction: Luxembourg; 
OECD: [Empty]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: X[C]. 

Jurisdiction: Macao; 
OECD: [Empty]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Maldives; 
OECD: [Empty]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Malta; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Jurisdiction: Marshall Islands; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Mauritius; 
OECD: [Check]; 
NBER: [Empty]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Monaco; 
OECD: [Check][A]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Montserrat; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Nauru; 
OECD: [Check]; 
NBER: [Empty]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Jurisdiction: Netherlands Antilles; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check][B]. 

Jurisdiction: Niue; 
OECD: [Check]; 
NBER: [Empty]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Panama; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Jurisdiction: Samoa; 
OECD: [Check]; 
NBER: [Empty]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Jurisdiction: San Marino; 
OECD: [Check]; 
NBER: [Empty]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Seychelles; 
OECD: [Check]; 
NBER: [Empty]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Singapore; 
OECD: [Empty]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Jurisdiction: St. Kitts and Nevis; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Jurisdiction: St. Lucia; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: v[F]. 

Jurisdiction: St. Vincent and the Grenadines; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Jurisdiction: Switzerland; 
OECD: [Empty]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: X[C]. 

Jurisdiction: Turks and Caicos Islands; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Jurisdiction: U.S. Virgin Islands; 
OECD: v; 
NBER: [Empty]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Empty]. 

Jurisdiction: Vanuatu; 
OECD: [Check]; 
NBER: [Check]; 
U.S. District Court order granting leave for IRS to serve a "John Doe" 
summons: [Check]. 

Sources: OECD, NBER, and John Doe summons. 

[A] These are uncooperative tax havens; the remaining are committed 
jurisdictions. These terms are explained in the following paragraph. 

[B] A Tax Information Exchange Agreement (TIEA) is in force between the 
United States and this jurisdiction. 

[C] A double tax treaty is in force with an exchange of information 
provision. For Switzerland, the treaty provides that the competent 
authorities of the contracting states shall exchange such information 
as is necessary "for the prevention of tax fraud or the like." 

[D] NBER's list included the Channel Islands. Jersey and Guernsey are 
part of the Channel Islands. The two other sources we used to identify 
tax havens listed Jersey and Guernsey as two separate tax havens and 
did not include the Channel Islands on their lists of tax havens. To be 
consistent, we are including Jersey and Guernsey as tax havens on the 
bureau's list rather than the Channel Islands. 

[E] The John Doe summons lists Guernsey/Sark/Alderney. OECD only 
included Guernsey. Since Sark and Alderney are part of the Bailiwick of 
Guernsey, to be consistent, we are only including Guernsey on our list 
of tax havens. 

[F] The TIEA signed by the United States and St. Lucia on January 30, 
1987, is not in effect within the meaning of section 274(h)(6)(A)(i) of 
the Internal Revenue Code because the government of St. Lucia has not 
enacted legislation to implement the agreement. 

[End of table] 

Organization for Economic Co-operation and Development: 

As of February 2008, OECD lists 38 jurisdictions--35 that have made 
commitments to cooperate with OECD in addressing issues related to 
transparency and the effective exchange of information and 3 that have 
not made such commitments.[Footnote 27] OECD refers to the 35 as 
committed jurisdictions and the remaining 3 as uncooperative tax 
havens. Although OECD does not provide a unique definition of the term 
tax haven, OECD has established a set of criteria to characterize a tax 
haven. Specifically, OECD stipulates four major features of a tax 
haven: (1) no or nominal income tax; (2) rules that prevent the 
effective exchange of information with foreign tax authorities; (3) a 
lack of transparency in the operation of legislative, legal, or 
administrative provisions; and (4) the absence of a requirement for a 
substantive local presence. In general, OECD classifies a country as a 
tax haven if it meets the criterion of no or nominal income tax, and at 
least one of the other criteria. Most of the committed jurisdictions 
agreed to cooperate with OECD in addressing "harmful tax practices" by 
December 31, 2005. However, OECD reported in October 2007 that some 
jurisdictions that committed to implementing standards on transparency 
and the effective exchange of information had failed to do so, although 
OECD did not specify which or how many jurisdictions had not made 
progress. As a result, we included all 38 jurisdictions in our review. 

National Bureau of Economic Research: 

An NBER December 2006 working paper[Footnote 28] that attempts to 
determine which jurisdictions become tax havens uses as its basic 
definition the list of 41 countries and territories identified as tax 
havens by Hines and Rice in a 1994 article in The Quarterly Journal of 
Economics.[Footnote 29] This list is based on the coexistence of low 
business tax rates in a jurisdiction in 1982 and its identification as 
a tax haven by multiple authoritative sources. As explained below, this 
resulted in a list of 40 tax havens that we used in our review. 

Although The Quarterly Journal of Economics article identifies 41 
countries as tax havens, the NBER study revised this list to include 39 
countries. First, The Quarterly Journal of Economics article included 
the United Kingdom Caribbean Islands and St. Martin. The NBER study 
deleted the United Kingdom Caribbean Islands from the list because the 
United Kingdom Caribbean Islands is a general term used by the Bureau 
of Economic Analysis for British dependencies in the Caribbean, and 
most of these dependencies are included as separate tax havens on the 
list (Anguilla, Montserrat, the Cayman Islands, and the Turks and 
Caicos Islands). Second, the NBER study also deleted St. Martin from 
the list because it is part of the Netherlands Antilles and the 
Netherlands Antilles is already included on the list. 

The NBER study and The Quarterly Journal of Economics article included 
the Channel Islands on the list of tax havens. Jersey and Guernsey are 
part of the Channel Islands. The other sources we used to identify tax 
havens listed Jersey and Guernsey as two separate tax havens and did 
not include the Channel Islands on their lists of tax havens or 
financial privacy jurisdictions. To be consistent, we are including 
Jersey and Guernsey as tax havens rather than the Channel Islands. When 
this criterion is applied, the NBER study includes 40 tax 
havens.[Footnote 30] 

Per The Quarterly Journal of Economics article, tax havens are often 
defined as locations with the following four attributes: (1) low 
corporate or personal tax rates, (2) legislation that supports banking 
and business secrecy, (3) advanced communication facilities, and (4) 
self-promotion as an offshore financial center. The Quarterly Journal 
of Economics list of tax havens is a combination of the following: 

* The authors started with a list of 32 tax haven countries that 
Glautier and Bassinger reported in 1987 were in the Internal Revenue 
Manual. They deleted 3 countries in which the foreign corporate tax 
paid by U.S. companies was greater than 20 percent of pretax income 
resulting in a list of 29 tax haven countries. 

* Next, the authors used Andre Beauchamp's[Footnote 31] list of tax 
haven countries. This list included all of the IRS-identified countries 
plus 15 others. The authors added the Beauchamp countries, which had an 
average tax rate lower than 10 percent for U.S. companies. This 
resulted in adding 7 countries to the list. 

* They applied the same criteria (average tax rate lower than 10 
percent for U.S. companies) to the countries discussed in the Economist 
Intelligence Unit's[Footnote 32] tax haven volume developed by Caroline 
Doggart[Footnote 33] in 1983 that they applied to the countries 
included in the Beauchamp study. This resulted in adding five countries 
to the list. 

This resulted in a list of 41 tax havens. As previously explained, to 
be consistent with other sources we used to identify tax havens, there 
are 40 tax havens on this list. 

John Doe Summons: 

On October 14, 2005, the United States filed in the U.S. District Court 
for the Northern District of California an ex parte petition for leave 
to serve a "John Doe" summons upon PayPal, Inc. and its affiliates and 
subsidiaries pursuant to sections 7402(a), 7609(f), and 7609(h) of the 
Internal Revenue Code,[Footnote 34] and the court issued an order 
granting leave to serve the John Doe summons in February 2006.[Footnote 
35]A John Doe summons is a third-party summons[Footnote 36] that does 
not identify the person with respect to whose tax liability the summons 
is issued and may be served only after a court proceeding.[Footnote 37] 
The summons was for information on U.S. taxpayers who, during the years 
ended December 31, 1999, through December 31, 2004, had signature 
authority over bank accounts at or over MasterCard, VISA, or American 
Express cards issued by, through, or on behalf of banks or other 
financial institutions in 34 jurisdictions. 

Supporting the petition was a declaration of an IRS revenue agent. 
[Footnote 38] The IRS agent stated that IRS was conducting an 
investigation to determine the correct federal income tax liabilities, 
for the years ended December 31, 1999, through December 31, 2004, of 
U.S. taxpayers who had signature authority over bank accounts or other 
MasterCard, VISA, or American Express cards issued by, through, or on 
behalf of banks or other financial institutions in the same 34 
jurisdictions. Further, in the declaration the agent states the 
following: 

"Based upon my experience and information received from other 
investigations, it is likely that a number of the persons who have 
signature authority over bank accounts at or over American Express, 
MasterCard, or VISA payment cards issued by, through, or for banks or 
other financial institutions in the jurisdictions identified … may have 
been under-reporting income, evading income taxes, or otherwise 
violating the internal revenue laws of the United States."[Footnote 39] 

In this declaration, the IRS revenue agent stated that the 34 
jurisdictions listed on the John Doe summons to PayPal "are widely 
known as places where, because of strict bank secrecy laws and devices 
such as International Business Corporations, trusts and other 
subterfuges, persons can shield their wealth from taxation in their 
home countries. These jurisdictions are all recognized as principal 
offshore tax haven or financial privacy jurisdictions by industry 
analysts and are actively marketed as such by promoters of offshore 
schemes."[Footnote 40] The declaration explains that these 
jurisdictions were selected "on the reasonable belief that United 
States taxpayers have failed or may have failed to comply with 
provisions of the internal revenue laws through the use of American 
Express, MasterCard, or VISA payment cards issued by, through, or on 
behalf of banks and other financial institutions in those 
jurisdictions."[Footnote 41] 

Identifying the Largest Corporations and Federal Contractors and Their 
Subsidiaries in Jurisdictions Listed as Tax Havens or Financial Privacy 
Jurisdictions: 

For the first objective, we used the Fortune 500 list to identify the 
100 largest publicly traded U.S. corporations in terms of revenue for 
2007.[Footnote 42] We used data from USASpending.gov[Footnote 43] to 
determine if these corporations had 2007 fiscal year federal contract 
obligations and, if so, the amount of those obligations. For the second 
objective, we used USASpending.gov to identify the largest federal 
contractors based on fiscal year 2007 obligations and used information 
from the contractors' Web sites and the Fortune 500 list to determine 
if they were publicly traded U.S. corporations. Based on this 
information, we developed a list of the 100 largest publicly traded 
U.S. federal contractors. 

USASpending.gov utilizes data from the Federal Procurement Data System- 
Next Generation (FPDS-NG) and aggregates subsidiaries and divisions by 
parent company using information provided by Dun and Bradstreet. To 
assess the reliability of USASpending.gov and FPDS-NG data, we reviewed 
documentation about the data and systems that produced them, including 
the FPDS-NG data element dictionary, data validation rules, and 
certification process. Based on this, we determined that the data were 
sufficiently reliable for the purpose of determining the general extent 
of federal contract obligations. However, because of situations in 
which corporations may participate in other activities, such as joint 
ventures; limited information on some corporations; and the constantly 
changing circumstances of corporations, their holdings, and their 
contracts, we faced challenges in developing a list of the largest 
federal contractors and determining the total obligations of those 
contracts. As a result, we developed the following criteria to develop 
the list of the 100 largest publicly traded U.S. federal contractors 
and to determine the amounts of contract obligations: 

* First, we excluded subsidiaries and joint ventures because they are 
not publicly traded.[Footnote 44] 

* Second, if we could not determine if a contractor was a publicly 
traded U.S. corporation, we did not include the contractor on our list. 
In these cases we often identified news articles or information from 
the contractor's Web sites that indicated that the contractor was not 
publicly traded or was not a U.S. company, such as only finding 
information about the contractor in a foreign language. 

* Third, in determining the amount of obligations, if a subsidiary of a 
contractor was listed, we did not add the dollar amount of the 
subsidiary's contract to the parent's contract, and if a contractor was 
listed twice, we used the dollar amount only from the first listing of 
the contractor and did not add the contract amount(s) from any other 
listings for that contractor. We did not add subsidiary contracts to 
parents' contracts or add multiple listings of the same contractor 
because if we did so, then to ensure that we used comparable data for 
other contractors, we would have needed to review the entire list of 
federal contractors and conduct additional research for each contractor 
to identify other subsidiaries or multiple listings. Since the federal 
contract amount is secondary to the main purpose of our review--to 
identify the extent of subsidiaries in jurisdictions that may be listed 
as tax havens or financial privacy jurisdictions--we determined that 
not reviewing the entire list of federal contractors was an acceptable 
limitation for our review. 

Using these criteria likely resulted in lower estimates of contract 
obligations for some federal contractors as well as the contract 
obligations for some of the largest corporations. 

To address both objectives, we used Form 10-K[Footnote 45] and Exhibit 
21,[Footnote 46] which are included in the SEC's Electronic Data 
Gathering, Analysis, and Retrieval database (EDGAR), to determine the 
locations of corporations' and contractors' subsidiaries based on their 
latest filings with the SEC at the time of our review. Since the 
principal executive officer(s), the principal financial officer(s), the 
controller or principal accounting officer, and at least the majority 
of the board of directors or persons with similar functions must sign 
the form filed with the SEC that includes the subsidiaries, we did not 
take additional steps to verify the accuracy of information found in 
EDGAR. Also, since the SEC only requires public corporations to report 
their significant subsidiaries, we were only able to identify the 
subset of corporate subsidiaries meeting the definition of significant 
subsidiary. Within Exhibit 21, public corporations may omit information 
on those subsidiaries that do not constitute significant subsidiaries 
when considered in the aggregate. The SEC considers a subsidiary to be 
significant if (1) the parent corporation's and its other subsidiaries' 
investments in and advances to the subsidiary exceed 10 percent of the 
consolidated total assets of the parent corporation and its 
subsidiaries, (2) the parent corporation's and its other subsidiaries' 
proportionate share of the total assets (after intercompany 
eliminations) of the subsidiary exceeds 10 percent of the consolidated 
total assets of the parent corporation and its subsidiaries, or (3) the 
parent corporation and its other subsidiaries' equity in the income 
from continuing operations[Footnote 47] exceeds 10 percent of the 
consolidated income from continuing operations of the parent 
corporation and its subsidiaries. Corporations may also omit 
information on consolidated wholly owned multiple subsidiaries carrying 
on the same line of business (such as chain stores). Since the SEC only 
requires public corporations to report significant subsidiaries, the 
number of subsidiaries in jurisdictions listed as tax havens or 
financial privacy jurisdictions for each corporation or federal 
contractor may be understated in this report. 

[End of section] 

Appendix II: The 100 Largest Publicly Traded U.S. Corporations: 

Corporation: 3M; 
Rank by revenue: 94; 
2007 Revenue (dollars in millions): $24,462; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $31,275; 
Number of foreign subsidiaries: 62; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 9; 
Bermuda (1); 
Hong Kong (1); 
Luxembourg (2); 
Singapore (3); 
Switzerland (2). 

Corporation: Abbott Laboratories; 
Rank by revenue: 91; 
2007 Revenue (dollars in millions): $25,914; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $66,126; 
Number of foreign subsidiaries: 168; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 36; 
Bahamas (2); 
Barbados (1); 
Bermuda (5); 
Costa Rica (1); 
Grenada (1); 
Hong Kong (1); 
Ireland (13); 
Latvia (1); 
Lebanon (1); 
Panama (2); 
Singapore (2); 
Switzerland (5); 
Virgin Islands (1)[B]. 

Corporation: Aetna; 
Rank by revenue: 83; 
2007 Revenue (dollars in millions): $27,600; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $192; 
Number of foreign subsidiaries: 14; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 8; 
Bermuda (4); 
Cayman Islands (1); 
Hong Kong (2); 
Ireland (1). 

Corporation: Alcoa; 
Rank by revenue: 79; 
2007 Revenue (dollars in millions): $30,748; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $80,235; 
Number of foreign subsidiaries: 31; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 4; 
Hong Kong (1); 
Luxembourg (2); 
Switzerland (1). 

Corporation: Allstate; 
Rank by revenue: 63; 2007 
Revenue (dollars in millions): $36,769; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: 0; 
Number of foreign subsidiaries: 7; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Bermuda (1). 

Corporation: Altria Group; 
Rank by revenue: 60; 
2007 Revenue (dollars in millions): $38,051; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: 0; 
Number of foreign subsidiaries: 163; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 38; 
British Virgin Islands (3); 
Cayman Islands (1); 
Costa Rica (2); 
Hong Kong (1); 
Ireland (2); 
Latvia (1); 
Luxembourg (1); 
Netherlands Antilles (1); 
Panama (2); 
Singapore (3); 
Switzerland (21). 

Corporation: American Express; 
Rank by revenue: 74; 
2007 Revenue (dollars in millions): $32,316; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $355; 
Number of foreign subsidiaries: 165; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 39; 
Bahrain (2); 
British Virgin Islands (2); 
Cayman Islands (9); 
Guernsey (6); 
Hong Kong (4); 
Jersey (4); 
Luxembourg (3); 
Netherlands Antilles (2); 
Panama (1); 
Singapore (2); 
Switzerland (4). 

Corporation: American International Group; 
Rank by revenue: 13; 
2007 Revenue (dollars in millions): $110,064; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $598; 
Number of foreign subsidiaries: 88; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 18; 
Bahrain (2); 
Bermuda (5); 
Hong Kong (3); 
Ireland (3); 
Luxembourg (1); 
Panama (1); 
Switzerland (3). 

Corporation: AmerisourceBergen Corporation; 
Rank by revenue: 28; 
2007 Revenue (dollars in millions): $66,074; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,469,378; 
Number of foreign subsidiaries: 0; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: Apple; 
Rank by revenue: 97; 
2007 Revenue (dollars in millions): $24,006; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $2,221; 
Number of foreign subsidiaries: 1; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Ireland (1). 

Corporation: Archer-Daniels-Midland Company; 
Rank by revenue: 51; 
2007 Revenue (dollars in millions): $44,018; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $197,488; 
Number of foreign subsidiaries: 6; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 3; 
Cayman Islands (2); 
Ireland (1). 

Corporation: AT&T, Inc.; 
Rank by revenue: 10; 
2007 Revenue (dollars in millions): $118,928; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $519,233; 
Number of foreign subsidiaries: 0; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: Bank of America Corporation; 
Rank by revenue: 9; 
2007 Revenue (dollars in millions): $119,190; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $13,763; 
Number of foreign subsidiaries: 311; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 115; 
Bahamas (3); 
Bermuda (2); 
Cayman Islands (59); 
Gibraltar (2); 
Hong Kong (8); 
Ireland (14); 
Jersey (3); 
Luxembourg (15); 
Mauritius (3); 
Singapore (5); 
U.S. Virgin Islands (1). 

Corporation: Berkshire Hathaway, Inc.; 
Rank by revenue: 11; 
2007 Revenue (dollars in millions): $118,245; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $235,394; 
Number of foreign subsidiaries: 27; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Ireland (1). 

Corporation: Best Buy; 
Rank by revenue: 65; 
2007 Revenue (dollars in millions): $35,934; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,885; 
Number of foreign subsidiaries: 35; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 13; 
Bermuda (2); 
Hong Kong (2); 
Luxembourg (1); 
Mauritius (7); 
Turks and Caicos Islands (1). 

Corporation: The Boeing Company; 
Rank by revenue: 27; 
2007 Revenue (dollars in millions): $66,387; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $23,312,965; 
Number of foreign subsidiaries: 135; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 38; 
Bermuda (6); 
Cayman Islands (1); 
Gibraltar (2); 
Hong Kong (4); 
Ireland (4); 
Netherlands Antilles (2); 
Singapore (3); 
U.S. Virgin Islands (16). 

Corporation: Cardinal Health, Inc.; 
Rank by revenue: 19; 
2007 Revenue (dollars in millions): $88,364; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,039,243; 
Number of foreign subsidiaries: 135; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 23; 
Barbados (1); 
Bermuda (2); 
British Virgin Islands (1); 
Cayman Islands (1); 
Hong Kong (1); 
Ireland (5); 
Luxembourg (3); 
Malta (1); 
Mauritius (1); 
Singapore (3); 
Switzerland (4). 

Corporation: Caterpillar, Inc.; 
Rank by revenue: 49; 
2007 Revenue (dollars in millions): $44,958; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $171,485; 
Number of foreign subsidiaries: 329; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 49; 
Barbados (1); 
Bermuda (13); 
Costa Rica (1); 
Guernsey (1); 
Hong Kong (3); 
Ireland (2); 
Luxembourg (3); 
Mauritius (1); 
Panama (3); 
Singapore (8); 
Switzerland (13). 

Corporation: Chevron; 
Rank by revenue: 3; 
2007 Revenue (dollars in millions): $210,783; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $98,418; 
Number of foreign subsidiaries: 45; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 23; 
Bahamas (5); 
Bermuda (16); 
Liberia (1); 
Singapore (1). 

Corporation: Cisco Systems; 
Rank by revenue: 70; 
2007 Revenue (dollars in millions): $34,922; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $4,063; 
Number of foreign subsidiaries: 201; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 38; 
Barbados (1); 
Bermuda (7); 
Costa Rica (1); 
Cyprus (1); 
Hong Kong (5); 
Ireland (8); 
Jordan (1); 
Latvia (1); 
Luxembourg (2); 
Mauritius (2); 
Panama (1); 
Singapore (6); 
Switzerland (2). 

Corporation: Citigroup; 
Rank by revenue: 8; 
2007 Revenue (dollars in millions): $159,229; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $3,122; 
Number of foreign subsidiaries: 1,240; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 427; 
Aruba (1); 
Bahamas (16); 
Bahrain (1); 
Barbados (2); 
Bermuda (19); 
British Virgin Islands (35); 
Cayman Islands (90); 
Channel Islands (12); 
Costa Rica (19); 
Gibraltar (1); 
Guernsey (1); 
Hong Kong (40); 
Ireland (16); 
Isle of Man (1); 
Jersey (21); 
Luxembourg (91); 
Macao (1); 
Mauritius (15); 
Panama (17); 
St. Kitts and Nevis (1); 
Singapore (18); 
Switzerland (8); 
Turks and Caicos Islands (1). 

Corporation: Coca-Cola; 
Rank by revenue: 81; 
2007 Revenue (dollars in millions): $28,857; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $29,942; 
Number of foreign subsidiaries: 72; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 8; 
British Virgin Islands (1); 
Cayman Islands (2); 
Costa Rica (1); 
Hong Kong (1); 
Ireland (1); 
Singapore (1); 
Switzerland (1). 

Corporation: Comcast; 
Rank by revenue: 78; 
2007 Revenue (dollars in millions): $30,895; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $3,118; 
Number of foreign subsidiaries: 29; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 3; 
Hong Kong (1); 
Netherlands Antilles (1); 
Switzerland (1). 

Corporation: ConocoPhillips; 
Rank by revenue: 5; 
2007 Revenue (dollars in millions): $178,558; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $267,206; 
Number of foreign subsidiaries: 125; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 44; 
Bahamas (2); 
Bermuda (17); 
British Virgin Islands (2); 
Cayman Islands (9); 
Ireland (3); 
Liberia (5); 
Luxembourg (2); 
Marshall Islands (1); 
Singapore (1); 
Switzerland (2). 

Corporation: Costco Wholesale; 
Rank by revenue: 29; 
2007 Revenue (dollars in millions): $64,400; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $12; 
Number of foreign subsidiaries: 3; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Bermuda (1). 

Corporation: Countrywide Financial; 
Rank by revenue: 98; 
2007 Revenue (dollars in millions): $23,442; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: 0; 
Number of foreign subsidiaries: 20; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 7; 
Cayman Islands (1); 
Costa Rica (1); 
Guernsey (2); 
Hong Kong (1); 
Mauritius (1); 
Singapore (1). 

Corporation: CVS Caremark; 
Rank by revenue: 24; 
2007 Revenue (dollars in millions): $76,330; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $971; 
Number of foreign subsidiaries: 0; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: Deere; 
Rank by revenue: 96; 
2007 Revenue (dollars in millions): $24,082; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $29,428; 
Number of foreign subsidiaries: 32; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 3; 
Luxembourg (2); 
Switzerland (1). 

Corporation: Dell, Inc.; 
Rank by revenue: 33; 
2007 Revenue (dollars in millions): $61,133; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,132,476; 
Number of foreign subsidiaries: 158; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 29; 
Bahrain (1); 
Barbados (1); 
Cayman Islands (4); 
Costa Rica (2); 
Hong Kong (1); 
Ireland (10); 
Lebanon (1); 
Luxembourg (1); 
Panama (1); 
Singapore (5); 
Switzerland (2). 

Corporation: Delphi; 
Rank by revenue: 88; 
2007 Revenue (dollars in millions): $26,160; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,650; 
Number of foreign subsidiaries: 141; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 9; 
Ireland (1); 
Luxembourg (3); 
Singapore (3); 
Virgin Islands (2)[B]. 

Corporation: Dow Chemical; 
Rank by revenue: 41; 
2007 Revenue (dollars in millions): $53,513; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $10,180; 
Number of foreign subsidiaries: 317; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 35; 
Bahrain (1); 
Barbados (3); 
Bermuda (3); 
Costa Rica (1); 
Hong Kong (5); 
Ireland (3); 
Luxembourg (3); 
Mauritius (2); 
Singapore (6); 
Switzerland (7); 
Virgin Islands (1)[B]. 

Corporation: DuPont; 
Rank by revenue: 80; 
2007 Revenue (dollars in millions): $30,653; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $3,386; 
Number of foreign subsidiaries: 44; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 9; 
Bermuda (2); 
Hong Kong (1); 
Luxembourg (2); 
Singapore (1); 
Switzerland (3). 

Corporation: Enterprise GP Holdings; 
Rank by revenue: 86; 
2007 Revenue (dollars in millions): $26,714; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: 0; 
Number of foreign subsidiaries: 1; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: Exxon Mobil Corporation; 
Rank by revenue: 2; 
2007 Revenue (dollars in millions): $372,824; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $949,152; 
Number of foreign subsidiaries: 122; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 32; 
Bahamas (18); 
Bermuda (1); 
Cayman Islands (3); 
Hong Kong (3); 
Ireland (1); 
Luxembourg (2); 
Singapore (3); 
Switzerland (1). 

Corporation: Fannie Mae; 
Rank by revenue: 52; 
2007 Revenue (dollars in millions): $43,355; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: 0; 
Number of foreign subsidiaries: 0; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: FedEx; 
Rank by revenue: 67; 
2007 Revenue (dollars in millions): $35,214; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $59,453; 
Number of foreign subsidiaries: 101; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 21; 
Antigua (1); 
Bahamas (1); 
Barbados (1); 
Bermuda (1); 
Cayman Islands (3); 
Costa Rica (1); 
Grenada (1); 
Hong Kong (2); 
Ireland (3); 
Netherlands Antilles (2); 
Singapore (1); 
St. Kitts (1); St. Lucia (1); 
Turks and Caicos Islands (1); 
U.S. Virgin Islands (1). 

Corporation: Ford Motor Company; 
Rank by revenue: 7; 
2007 Revenue (dollars in millions): $172,468; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $358,360; 
Number of foreign subsidiaries: 54; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 2; 
Bermuda (1); 
Cayman Islands (1). 

Corporation: Freddie Mac; 
Rank by revenue: 53; 
2007 Revenue (dollars in millions): $43,104; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: 0; 
Number of foreign subsidiaries: 0; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: General Dynamics Corporation; 
Rank by revenue: 84; 
2007 Revenue (dollars in millions): $27,294; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $13,905,516; 
Number of foreign subsidiaries: 51; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 5; 
Cyprus (1); 
Singapore (1); 
Switzerland (3). 

Corporation: General Electric Company; 
Rank by revenue: 6; 
2007 Revenue (dollars in millions): $176,656; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $2,780,528; 
Number of foreign subsidiaries: 40; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 7; 
Bermuda (3); 
Luxembourg (1); 
Singapore (3). 

Corporation: General Motors Corporation; 
Rank by revenue: 4; 
2007 Revenue (dollars in millions): $182,347; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $517,205; 
Number of foreign subsidiaries: 113; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 11; 
Barbados (1); 
Bermuda (2); 
Cayman Islands (4); 
Ireland (1); 
Singapore (1); 
Switzerland (2). 

Corporation: GMAC; 
Rank by revenue: 77; 
2007 Revenue (dollars in millions): $31,490; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: 0; 
Number of foreign subsidiaries: 56; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 2; 
Bermuda (1); 
Switzerland (1). 

Corporation: Goldman Sachs Group; 
Rank by revenue: 20; 
2007 Revenue (dollars in millions): $87,968; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $356; 
Number of foreign subsidiaries: 55; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 29; 
Bermuda (3); 
British Virgin Islands (1); 
Cayman Islands (15); 
Hong Kong (3); 
Ireland (1); 
Jersey (1); 
Mauritius (5). 

Corporation: Hartford Financial Services; 
Rank by revenue: 90; 
2007 Revenue (dollars in millions): $25,916; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $353; 
Number of foreign subsidiaries: 32; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 10; 
Bermuda (7); 
Ireland (3). 

Corporation: Hess Corporation; 
Rank by revenue: 76; 
2007 Revenue (dollars in millions): $31,924; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $240,500; 
Number of foreign subsidiaries: 11; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 5; 
Cayman Islands (4); 
U.S. Virgin Islands (1). 

Corporation: Hewlett-Packard Company; 
Rank by revenue: 14; 
2007 Revenue (dollars in millions): $104,286; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $374,297; 
Number of foreign subsidiaries: 81; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 14; 
Cayman Islands (1); 
Costa Rica (1); 
Hong Kong (1); 
Ireland (3); 
Latvia (1); 
Netherlands Antilles (1); 
Singapore (4); 
Switzerland (2). 

Corporation: Home Depot; 
Rank by revenue: 22; 
2007 Revenue (dollars in millions): $84,740; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $2,304; 
Number of foreign subsidiaries: 0; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: Honeywell International, Inc.; 
Rank by revenue: 72; 
2007 Revenue (dollars in millions): $34,589; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $2,491,103; 
Number of foreign subsidiaries: 35; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 7; 
Bermuda (1); 
Luxembourg (3); 
Singapore (1); 
Switzerland (2). 

Corporation: Humana; 
Rank by revenue: 93; 
2007 Revenue (dollars in millions): $25,290; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $37,863; 
Number of foreign subsidiaries: 5; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: Ingram Micro; 
Rank by revenue: 68; 
2007 Revenue (dollars in millions): $35,047; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: 0; 
Number of foreign subsidiaries: 104; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 33; 
Barbados (1); 
Bermuda (2); 
British Virgin Islands (1); 
Cayman Islands (8); 
Hong Kong (6); 
Luxembourg (1); 
Mauritius (2); 
Panama (1); 
Singapore (10); 
Switzerland (1). 

Corporation: Intel; 
Rank by revenue: 59; 
2007 Revenue (dollars in millions): $38,334; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: 0; 
Number of foreign subsidiaries: 15; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 6; 
Cayman Islands (5); 
Costa Rica (1). 

Corporation: International Business Machines Corporation; 
Rank by revenue: 15; 
2007 Revenue (dollars in millions): $98,786; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,427,788; 
Number of foreign subsidiaries: 70; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 10; 
Bahamas (1); 
Barbados (1); 
Bermuda (1); 
Costa Rica (1); 
Hong Kong (1); 
Ireland (1); 
Latvia (1); 
Luxembourg (1); 
Singapore (1); 
Switzerland (1). 

Corporation: J.P. Morgan Chase & Co.; 
Rank by revenue: 12; 
2007 Revenue (dollars in millions): $116,353; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $55,337; 
Number of foreign subsidiaries: 163; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 50; 
Bahamas (1); 
Bermuda (2); 
British Virgin Islands (4); 
Cayman Islands (7); 
Channel Islands (4); 
Hong Kong (8); 
Ireland (2); 
Luxembourg (8); 
Mauritius (8); 
Singapore (5); 
Switzerland (1). 

Corporation: Johnson & Johnson; 
Rank by revenue: 34; 
2007 Revenue (dollars in millions): $61,095; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $170,246; 
Number of foreign subsidiaries: 175; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 38; 
Hong Kong (2); 
Ireland (16); 
Luxembourg (1); 
Panama (1); 
Singapore (1); 
Switzerland (17). 

Corporation: Johnson Controls; 
Rank by revenue: 71; 
2007 Revenue (dollars in millions): $34,678; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $120,645; 
Number of foreign subsidiaries: 0; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: Kraft Foods, Inc.; 
Rank by revenue: 62; 
2007 Revenue (dollars in millions): $37,241; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $348,708; 
Number of foreign subsidiaries: 255; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 36; 
Bahamas (1); 
Bahrain (1); 
British Virgin Islands (2); 
Cayman Islands (1); 
Costa Rica (3); 
Hong Kong (4); 
Ireland (4); 
Latvia (1); 
Liberia (2); 
Luxembourg (2); 
Panama (1); 
Singapore (8); 
Switzerland (6). 

Corporation: Kroger; 
Rank by revenue: 26; 
2007 Revenue (dollars in millions): $70,235; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $86; 
Number of foreign subsidiaries: 1; 

Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Hong Kong (1). 

Corporation: Lehman Brothers Holdings; 
Rank by revenue: 36; 
2007 Revenue (dollars in millions): $59,003; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $25; 
Number of foreign subsidiaries: 141; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 57; 
Bermuda (2); 
Cayman Islands (31); 
Hong Kong (9); 
Ireland (1); 
Luxembourg (6); 
Mauritius (3); 
Singapore (5). 

Corporation: Lockheed Martin Corporation; 
Rank by revenue: 56; 
2007 Revenue (dollars in millions): $41,862; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $32,784,881; 
Number of foreign subsidiaries: 0; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: Lowe's; 
Rank by revenue: 47; 
2007 Revenue (dollars in millions): $48,283; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $717; 
Number of foreign subsidiaries: 0; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: Macy's; 
Rank by revenue: 87; 
2007 Revenue (dollars in millions): $26,340; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: 0; 
Number of foreign subsidiaries: 0; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: Marathon Oil; 
Rank by revenue: 35; 
2007 Revenue (dollars in millions): $60,044; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $50; 
Number of foreign subsidiaries: 115; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 76; 
Bahamas (1); 
Barbados (1); 
Bermuda (3); 
Cayman Islands (65); 
Cyprus (1); 
Ireland (2); 
Liberia (1); 
Luxembourg (1); 
Switzerland (1). 

Corporation: McDonald's; 
Rank by revenue: 100; 
2007 Revenue (dollars in millions): $23,231; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: 0; 
Number of foreign subsidiaries: 34; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 5; 
Hong Kong (2); 
Switzerland (3). 

Corporation: McKesson Corporation; 
Rank by revenue: 18; 
2007 Revenue (dollars in millions): $93,574; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $4,692,110; 
Number of foreign subsidiaries: 1;
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Ireland (1). 

Corporation: Medco Health Solutions; 
Rank by revenue: 50; 
2007 Revenue (dollars in millions): $44,506; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $261; 
Number of foreign subsidiaries: 0; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: Merck & Co., Inc.; 
Rank by revenue: 95; 
2007 Revenue (dollars in millions): $24,198; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,418,213; 
Number of foreign subsidiaries: 199; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 44; 
Barbados (2); 
Bermuda (14); 
Cyprus (1); 
Hong Kong (3); 
Ireland (7); 
Latvia (1); 
Lebanon (1); 
Luxembourg (2); 
Panama (2); 
Singapore (6); 
Switzerland (5). 

Corporation: Merrill Lynch; 
Rank by revenue: 30; 
2007 Revenue (dollars in millions): $64,217; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $500; 
Number of foreign subsidiaries: 82; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 21; 
Bermuda (2); 
Cayman Islands (3); 
Hong Kong (4); 
Ireland (2); 
Luxembourg (1); 
Mauritius (3); 
Netherlands Antilles (1); 
Singapore (2); 
Switzerland (3). 

Corporation: MetLife; 
Rank by revenue: 42; 
2007 Revenue (dollars in millions): $53,150; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,873; 
Number of foreign subsidiaries: 84; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 19; 
Barbados (5); Bermuda (3); 
Cayman Islands (5); 
Hong Kong (2); 
Ireland (2); 
Singapore (1); 
Virgin Islands (1)[B]. 

Corporation: Microsoft; 
Rank by revenue: 43; 
2007 Revenue (dollars in millions): $51,122; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $48,717; 
Number of foreign subsidiaries: 14; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 8; 
Bermuda (2); 
Ireland (5); 
Singapore (1). 

Corporation: Morgan Stanley; 
Rank by revenue: 21; 
2007 Revenue (dollars in millions): $87,879; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $14,062; 
Number of foreign subsidiaries: 568; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 273; 
Bermuda (3); 
British Virgin Islands (1); 
Cayman Islands (158); 
Cyprus (2); 
Gibraltar (2); 
Hong Kong (15); 
Ireland (6); 
Jersey (19); 
Liberia (5); 
Luxembourg (29); 
Malta (1); 
Marshall Islands (14); 
Mauritius (4); 
Panama (1); 
Singapore (9); 
Switzerland (4). 

Corporation: Motorola, Inc.; 
Rank by revenue: 64; 
2007 Revenue (dollars in millions): $36,622; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $321,347; 
Number of foreign subsidiaries: 24; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 4; 
Hong Kong (1); 
Singapore (3). 

Corporation: News Corporation; 
Rank by revenue: 82; 
2007 Revenue (dollars in millions): $28,655; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $2,646; 
Number of foreign subsidiaries: 782; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 152; 
Belize (1); Bermuda (1); 
British Virgin Islands (62); 
Cayman Islands (33); 
Cyprus (1); 
Hong Kong (21); 
Ireland (1); 
Latvia (4); 
Luxembourg (4); 
Marshall Islands (1); 
Mauritius (15); 
Panama (1); 
Singapore (5); 
Switzerland (2). 

Corporation: Northrop Grumman Corporation; 
Rank by revenue: 75; 
2007 Revenue (dollars in millions): $32,032; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $15,991,673; 
Number of foreign subsidiaries: 0; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: PepsiCo, Inc.; 
Rank by revenue: 58; 
2007 Revenue (dollars in millions): $39,474; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $218,353; 
Number of foreign subsidiaries: 356; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 70; 
Bahamas (1); 
Barbados (1); 
Bermuda (13); 
Cayman Islands (2); 
Costa Rica (2); 
Cyprus (5); 
Gibraltar (1); 
Hong Kong (10); 
Ireland (9); 
Jordan (1); 
Latvia (1); 
Liechtenstein (1); 
Luxembourg (7); 
Mauritius (2); 
Netherlands Antilles (6); 
Panama (1); 
Singapore (1); 
Switzerland (6). 

Corporation: Pfizer; 
Rank by revenue: 46; 
2007 Revenue (dollars in millions): $48,418; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $40,609; 
Number of foreign subsidiaries: 356; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 80; 
Bahamas (1); 
Bermuda (3); 
Cayman Islands (1); 
Costa Rica (2); 
Guernsey (1); 
Hong Kong (4); 
Ireland (28); 
Jersey (10); 
Luxembourg (16); 
Panama (3); 
Singapore (6); 
Switzerland (4); 
Virgin Islands (1)[B]. 

Corporation: The Procter & Gamble Company; 
Rank by revenue: 23; 
2007 Revenue (dollars in millions): $76,476; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $312,828; 
Number of foreign subsidiaries: 581; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 83; 
Barbados (1); 
Belize (1); 
Bermuda (5); 
British Virgin Islands (2); 
Cayman Islands (2); 
Costa Rica (3); 
Hong Kong (10); 
Ireland (11); 
Latvia (1); 
Lebanon (2); 
Liechtenstein (1); 
Luxembourg (6); 
Panama (3); 
Singapore (11); 
Switzerland (24). 

Corporation: Prudential Financial; 
Rank by revenue: 73; 
2007 Revenue (dollars in millions): $34,401; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $35,768; 
Number of foreign subsidiaries: 116; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 27; 
Barbados (1); 
Bermuda (9); 
Cayman Islands (5); 
Hong Kong (7); 
Ireland (1); 
Luxembourg (1); 
Singapore (3). 

Corporation: Safeway; 
Rank by revenue: 54; 
2007 Revenue (dollars in millions): $42,286; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $141; 
Number of foreign subsidiaries: 18; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 4; 
Bermuda (1); 
British Virgin Islands (1); 
Hong Kong (1); 
Macao (1). 

Corporation: Sears Holdings; 
Rank by revenue: 44; 
2007 Revenue (dollars in millions): $50,703; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $315; 
Number of foreign subsidiaries: 2; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Bermuda (1). 

Corporation: Sprint Nextel Corporation; 
Rank by revenue: 57; 
2007 Revenue (dollars in millions): $40,146; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $142,754; 
Number of foreign subsidiaries: 59; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 7; 
Bermuda (1); 
Hong Kong (2); 
Ireland (1); 
Singapore (1); 
Switzerland (2). 

Corporation: Sunoco; 
Rank by revenue: 55; 
2007 Revenue (dollars in millions): $42,101; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $68; 
Number of foreign subsidiaries: 11; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 5; 
Bermuda (4); 
Panama (1). 

Corporation: SuperValu; 
Rank by revenue: 61; 
2007 Revenue (dollars in millions): $37,406; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,520; 
Number of foreign subsidiaries: 6; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 5; 
Bermuda (4); 
Cayman Islands (1). 

Corporation: SYSCO Corporation; 
Rank by revenue: 69; 
2007 Revenue (dollars in millions): $35,042; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $173,586; 
Number of foreign subsidiaries: 31; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Hong Kong (1). 

Corporation: Target; 
Rank by revenue: 31; 
2007 Revenue (dollars in millions): $63,367; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: 0; 
Number of foreign subsidiaries: 19; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 8; 
Bermuda (1); 
Hong Kong (6); 
Singapore (1). 

Corporation: Tech Data; 
Rank by revenue: 99; 
2007 Revenue (dollars in millions): $23,423; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: 0; 
Number of foreign subsidiaries: 67; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 7; 
Cayman Islands (1); 
Costa Rica (1); 
Ireland (1); 
Luxembourg (1); 
Netherlands Antilles (1); 
Switzerland (2). 

Corporation: Time Warner; 
Rank by revenue: 48; 
2007 Revenue (dollars in millions): $46,615; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $7,575; 
Number of foreign subsidiaries: 48; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 4; 
Hong Kong (2); 
Ireland (1); 
Luxembourg (1). 

Corporation: Travelers Companies; 
Rank by revenue: 89;
2007 Revenue (dollars in millions): $26,017; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $535; 
Number of foreign subsidiaries: 27; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 6; 
Bermuda (4); 
Cayman Islands (1); 
Singapore (1). 

Corporation: Tyson Foods, Inc.; 
Rank by revenue: 85; 
2007 Revenue (dollars in millions): $26,900; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $326,553; 
Number of foreign subsidiaries: 41; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 6; 
Bermuda (1); 
Cayman Islands (1); 
Gibraltar (1); 
Hong Kong (1); 
Luxembourg (2). 

Corporation: United Parcel Service, Inc.; 
Rank by revenue: 45; 
2007 Revenue (dollars in millions): $49,692; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $140,771; 
Number of foreign subsidiaries: 0; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: United Technologies Corporation; 
Rank by revenue: 38; 
2007 Revenue (dollars in millions): $54,759; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $5,714,807; 
Number of foreign subsidiaries: 93; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 12; 
Cayman Islands (1); 
Hong Kong (2); 
Ireland (1); 
Luxembourg (4); 
Singapore (4). 

Corporation: UnitedHealth Group; 
Rank by revenue: 25; 
2007 Revenue (dollars in millions): $75,431; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,524; 
Number of foreign subsidiaries: 54; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 11; 
Bermuda (1); 
Cayman Islands (2); 
Costa Rica (2); 
Hong Kong (2); 
Ireland (2); 
Mauritius (1); 
Singapore (1). 

Corporation: Valero Energy Corporation; 
Rank by revenue: 16; 
2007 Revenue (dollars in millions): $96,758; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,027,334; 
Number of foreign subsidiaries: 23; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 11; 
Aruba (5); 
Bermuda (1); 
British Virgin Islands (3); 
Cayman Islands (2). 

Corporation: Verizon Communications, Inc.; 
Rank by revenue: 17; 
2007 Revenue (dollars in millions): $93,775; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $428,654; 
Number of foreign subsidiaries: 0; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: Wachovia Corporation; 
Rank by revenue: 37; 
2007 Revenue (dollars in millions): $55,528; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $3,683; 
Number of foreign subsidiaries: 105; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 59; 
Aruba (1); 
Barbados (1); 
Bermuda (18); 
British Virgin Islands (3); 
Cayman Islands (16); 
Guernsey (1); 
Hong Kong (9); 
Ireland (2); 
Mauritius (3); 
Singapore (2); 
Turks and Caicos Islands (1); 
U.S. Virgin Islands (2). 

Corporation: Walgreen; 
Rank by revenue: 39; 
2007 Revenue (dollars in millions): $53,762; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $17; 
Number of foreign subsidiaries: 4; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 2; 
Mauritius (2). 

Corporation: Wal-Mart Stores; 
Rank by revenue: 1; 
2007 Revenue (dollars in millions): $378,799; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $173; 
Number of foreign subsidiaries: 1; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Corporation: Walt Disney; 
Rank by revenue: 66; 
2007 Revenue (dollars in millions): $35,882; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,224; 
Number of foreign subsidiaries: 15; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 3; 
Hong Kong (2); 
Switzerland (1). 

Corporation: Washington Mutual; 
Rank by revenue: 92; 
2007 Revenue (dollars in millions): $25,531; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $556; 
Number of foreign subsidiaries: 5; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 3; 
Hong Kong (1); 
Mauritius (1); 
Virgin Islands (1)[B]. 

Corporation: WellPoint; 
Rank by revenue: 32; 
2007 Revenue (dollars in millions): $61,134; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $72,575; 
Number of foreign subsidiaries: 3; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Bermuda (1). 

Corporation: Wells Fargo; 
Rank by revenue: 40; 
2007 Revenue (dollars in millions): $53,593; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $37,777; 
Number of foreign subsidiaries: 34; 
Number and location(s) of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 18; 
Barbados (1); 
Cayman Islands (9); 
Hong Kong (4); 
Mauritius (4). 

Sources: Fortune 500 list for 2008 (which is based on 2007 revenues), 
USASpending.gov, Exhibit 21s filed with the Securities and Exchange 
Commission, and jurisdictions listed as tax havens or financial privacy 
jurisdictions. 

[A] Federal contract obligations are estimates. The actual contract 
obligations may be greater. 

[B] Abbot Laboratories, Delphi, Dow Chemical, MetLife, Pfizer, and 
Washington Mutual did not differentiate between the U.S. Virgin Islands 
and the British Virgin Islands. Therefore, for the purpose of this 
list, they are listed as Virgin Islands. 

[End of table] 

[End of section] 

Appendix III: The 100 Largest Publicly Traded U.S. Federal Contractors: 

Contractor: AAR Corporation; 
Rank by federal contract obligations: 79; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $196,565; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: AECOM Technology; 
Rank by federal contract obligations: 48; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $417,324; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: AeroVironment, Inc.; 
Rank by federal contract obligations: 83; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $185,261; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Affiliated Computer Services, Inc.; 
Rank by federal contract obligations: 72; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $218,586; 
Number of foreign subsidiaries: 55; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 7; 
Barbados (1); 
Hong Kong (2); 
Ireland (1); 
Luxembourg (1); 
Switzerland (2). 

Contractor: Alliant Techsystems, Inc.; 
Rank by federal contract obligations: 24; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,422,471; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: AmerisourceBergen Corporation; 
Rank by federal contract obligations: 21; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,469,378; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Archer-Daniels-Midland Company; 
Rank by federal contract obligations: 78; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $197,488; 
Number of foreign subsidiaries: 6; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 3; 
Cayman Islands (2); 
Ireland (1). 

Contractor: AT&T, Inc.; 
Rank by federal contract obligations: 40; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $519,233; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: BearingPoint, Inc.; 
Rank by federal contract obligations: 38; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $520,725; 
Number of foreign subsidiaries: 106; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 28; 
Aruba (2); 
Barbados (1); 
Bermuda (11); 
British Virgin Islands (2); 
Cayman Islands (2); 
Costa Rica (1); 
Jordan (1); Ireland (1); 
Panama (1); Switzerland (1); 
Singapore (4); 
U.S. Virgin Islands (1). 

Contractor: Berkshire Hathaway, Inc.; 
Rank by federal contract obligations: 70; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $235,394; 
Number of foreign subsidiaries: 27; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Ireland (1). 

Contractor: The Boeing Company; 
Rank by federal contract obligations: 2; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $23,312,965; 
Number of foreign subsidiaries: 135; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 38; 
Bermuda (6); 
Cayman Islands (1); 
Gibraltar (2); 
Hong Kong (4); 
Ireland (4); 
Netherlands Antilles (2); 
Singapore (3); 
U.S. Virgin Islands (16). 

Contractor: CACI International, Inc.; 
Rank by federal contract obligations: 22; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,443,230; 
Number of foreign subsidiaries: 1; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Cardinal Health, Inc.; 
Rank by federal contract obligations: 30; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,039,243; 
Number of foreign subsidiaries: 135; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 23; 
Barbados (1); 
Bermuda (2); 
British Virgin Islands (1); 
Cayman Islands (1); 
Hong Kong (1); 
Ireland (5); 
Luxembourg (3); 
Malta (1); 
Mauritius (1); 
Singapore (3); 
Switzerland (4). 

Contractor: Caterpillar, Inc.; 
Rank by federal contract obligations: 89; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $171,485; 
Number of foreign subsidiaries: 331; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 49; 
Barbados (1); 
Bermuda (13); 
Costa Rica (1); 
Guernsey (1); 
Hong Kong (3); 
Ireland (2); 
Luxembourg (3); 
Mauritius (1); 
Panama (3); 
Singapore (8); 
Switzerland (13). 

Contractor: Ceradyne, Inc.; 
Rank by federal contract obligations: 43; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $463,590; 
Number of foreign subsidiaries: 7; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 2; 
Cayman Islands (1); 
Hong Kong (1). 

Contractor: Computer Sciences Corporation; 
Rank by federal contract obligations: 10; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $3,189,701; 
Number of foreign subsidiaries: 119; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 21; 
Bermuda (1); 
British Virgin Islands (4); 
Costa Rica (1); 
Hong Kong (5); 
Ireland (2); 
Luxembourg (2); 
Macao (1); 
Singapore (4); 
Switzerland (1). 

Contractor: Comtech Telecommunications Corporation; 
Rank by federal contract obligations: 62; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $286,461; 
Number of foreign subsidiaries: 1; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: ConAgra Foods, Inc.; 
Rank by federal contract obligations: 97; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $148,713; 
Number of foreign subsidiaries: 2; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: ConocoPhillips; 
Rank by federal contract obligations: 65; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $267,206; 
Number of foreign subsidiaries: 125; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 44; 
Bahamas (2); 
Bermuda (17); 
British Virgin Islands (2); 
Cayman Islands (9); 
Ireland (3); 
Liberia (5); 
Luxembourg (2); 
Marshall Islands (1); 
Singapore (1); 
Switzerland (2). 

Contractor: Constellation Energy Group, Inc.; 
Rank by federal contract obligations: 91; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $166,060; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Cornell Companies, Inc.; 
Rank by federal contract obligations: 63; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $282,588; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Corrections Corporation of America; 
Rank by federal contract obligations: 46; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $447,008; 
Number of foreign subsidiaries: 2; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Cubic Corporation; 
Rank by federal contract obligations: 52; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $359,911; 
Number of foreign subsidiaries: 8; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
U.S. Virgin Islands (1). 

Contractor: Danaher Corporation; 
Rank by federal contract obligations: 98; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $147,214; 
Number of foreign subsidiaries: 548; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 72; 
Barbados (1); 
Cayman Islands (9); 
Hong Kong (14); 
Ireland (5); 
Luxembourg (4); 
Malta (1); 
Mauritius (2); 
Singapore (13); 
St. Kitts and Nevis (1); 
Switzerland (22). 

Contractor: Dell, Inc.; 
Rank by federal contract obligations: 28; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,132,476; 
Number of foreign subsidiaries: 158; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 29; 
Bahrain (1); 
Barbados (1); 
Cayman Islands (4); 
Costa Rica (2); 
Hong Kong (1); 
Ireland (10); 
Lebanon (1); 
Luxembourg (1); 
Panama (1); 
Singapore (5); 
Switzerland (2). 

Contractor: DRS Technologies, Inc.; 
Rank by federal contract obligations: 18; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,795,032; 
Number of foreign subsidiaries: 9; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Eaton Corporation; 
Rank by federal contract obligations: 87; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $173,671; 
Number of foreign subsidiaries: 164; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 37; 
Barbados (2); 
Bermuda (4); 
British Virgin Islands (3); 
Cayman Islands (5); 
Costa Rica (1); 
Hong Kong (4); 
Ireland (1); 
Luxembourg (5); 
Mauritius (4); 
Netherlands Antilles (1); 
Singapore (5); 
Switzerland (2). 

Contractor: Electronic Data Systems Corporation; 
Rank by federal contract obligations: 17; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $2,312,022; 
Number of foreign subsidiaries: 137; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 19; 
Bahrain (1); 
Bermuda (1); 
British Virgin Islands (1); 
Cayman Islands (2); 
Costa Rica (1); 
Guernsey (1); 
Hong Kong (1); 
Ireland (1); 
Luxembourg (2); 
Mauritius (2); 
Panama (1); 
Singapore (3); 
Switzerland (2). 

Contractor: Emergent Biosolutions, Inc.; 
Rank by federal contract obligations: 45; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $448,352; 
Number of foreign subsidiaries: 5; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Singapore (1). 

Contractor: Exxon Mobil Corporation; 
Rank by federal contract obligations: 32; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $949,152; 
Number of foreign subsidiaries: 122; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 32; 
Bahamas (18); 
Bermuda (1); 
Cayman Islands (3); 
Hong Kong (3); 
Ireland (1); 
Luxembourg (2); 
Singapore (3); 
Switzerland (1). 

Contractor: Flir Systems, Inc.[B]; 
Rank by federal contract obligations: 67; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $249,658; 
Number of foreign subsidiaries: Unknown; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: Unknown. 

Contractor: Fluor Corporation; 
Rank by federal contract obligations: 20; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,506,242; 
Number of foreign subsidiaries: 197; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 34; 
Barbados (2); 
Bermuda (7); 
British Virgin Islands (2); 
Cyprus (2); 
Guernsey (9); 
Ireland (5); 
Liechtenstein (2); 
Mauritius (3); 
Panama (1); 
St. Lucia (1). 

Contractor: Force Protection, Inc.; 
Rank by federal contract obligations: 27; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,139,550; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Ford Motor Company; 
Rank by federal contract obligations: 53; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $358,360; 
Number of foreign subsidiaries: 54; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 2; 
Bermuda (1); 
Cayman Islands (1). 

Contractor: General Dynamics Corporation; 
Rank by federal contract obligations: 4; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $13,905,516; 
Number of foreign subsidiaries: 51; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 5; 
Cyprus (1); 
Singapore (1); 
Switzerland (3). 

Contractor: General Electric Company; 
Rank by federal contract obligations: 11; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $2,780,528; 
Number of foreign subsidiaries: 40; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 7; 
Bermuda (3); 
Luxembourg (1); 
Singapore (3). 

Contractor: General Mills, Inc.; 
Rank by federal contract obligations: 81; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $193,621; 
Number of foreign subsidiaries: 171; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 33; 
Aruba (1); 
Bermuda (5); 
British Virgin Islands (2); 
Gibraltar (1); 
Hong Kong (5); 
Lebanon (2); 
Luxembourg (1); 
Mauritius (2); 
Netherlands Antilles (1); 
Panama (1); 
Singapore (4); 
Switzerland (8). 

Contractor: General Motors Corporation; 
Rank by federal contract obligations: 41; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $517,205; 
Number of foreign subsidiaries: 113; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 11; 
Barbados (1); 
Bermuda (2); 
Cayman Islands (4); 
Ireland (1); 
Singapore (1); 
Switzerland (2). 

Contractor: Goodrich Corporation; 
Rank by federal contract obligations: 56; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $326,475; 
Number of foreign subsidiaries: 72; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 17; 
Barbados (2); 
Gibraltar (3); 
Hong Kong (1); 
Luxembourg (5); 
Mauritius (1); 
Singapore (4); 
Virgin Islands (1)[C]. 

Contractor: The Goodyear Tire & Rubber Company; 
Rank by federal contract obligations: 85; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $182,072; 
Number of foreign subsidiaries: 165; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 13; 
Bermuda (1); 
Ireland (2); 
Luxembourg (6); 
Mauritius (1); 
Singapore (2); 
Switzerland (1). 

Contractor: Great Lakes Dredge & Dock Corporation; 
Rank by federal contract obligations: 68; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $246,606; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: GTSI Corporation; 
Rank by federal contract obligations: 49; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $399,060; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Harris Corporation; 
Rank by federal contract obligations: 19; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,741,545; 
Number of foreign subsidiaries: 71; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 13; 
Bermuda (1); 
Cayman Islands (1); 
Hong Kong (5); 
Mauritius (1); 
Singapore (4); 
U.S. Virgin Islands (1). 

Contractor: Hess Corporation; Rank by federal contract obligations: 69; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: 240,500; Number of foreign subsidiaries: 11; Number and 
locations of subsidiaries in jurisdictions listed as tax havens or 
financial privacy jurisdictions: 5; Cayman Islands (4); U.S. Virgin 
Islands (1). 

Contractor: Hewlett-Packard Company; 
Rank by federal contract obligations: 50; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $374,297; 
Number of foreign subsidiaries: 81; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 14; 
Cayman Islands (1); 
Costa Rica (1); 
Hong Kong (1); 
Ireland (3); 
Latvia (1); 
Netherlands Antilles (1); 
Singapore (4); 
Switzerland (2). 

Contractor: Honeywell International, Inc.; 
Rank by federal contract obligations: 13; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $2,491,103; 
Number of foreign subsidiaries: 35; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 7; 
Bermuda (1); 
Luxembourg (3); 
Singapore (1); 
Switzerland (2). 

Contractor: ICF International, Inc.; 
Rank by federal contract obligations: 92; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $165,488; 
Number of foreign subsidiaries: 7; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: International Business Machines Corporation; 
Rank by federal contract obligations: 23; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,427,788; 
Number of foreign subsidiaries: 70; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 10; 
Bahamas (1); 
Barbados (1); 
Bermuda (1); 
Costa Rica (1); 
Hong Kong (1); 
Ireland (1); 
Latvia (1); 
Luxembourg (1); 
Singapore (1); 
Switzerland (1). 

Contractor: International Shipholding Corporation; 
Rank by federal contract obligations: 94; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $162,236; 
Number of foreign subsidiaries: 13; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 11; 
Bermuda (1); 
British Virgin Islands (4); 
Cayman Islands (1); 
Marshall Islands (2); 
Panama (1); 
Singapore (2). 

Contractor: Interpublic Group of Companies, Inc.; 
Rank by federal contract obligations: 44; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $462,229; 
Number of foreign subsidiaries: 120; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 5; 
Ireland (1); 
Luxembourg (1); 
Mauritius (1); 
Singapore (1); 
Switzerland (1). 

Contractor: ITT Corporation; 
Rank by federal contract obligations: 14; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $2,377,121; 
Number of foreign subsidiaries: 170; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 18; 
Barbados (1); 
Bermuda (1); 
Cayman Islands (1); 
Hong Kong (3); 
Ireland (3); 
Luxembourg (5); 
Singapore (2); 
Switzerland (1); 
Virgin Islands (1)[C]. 

Contractor: Jacobs Engineering Group, Inc.; 
Rank by federal contract obligations: 29; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,051,891; 
Number of foreign subsidiaries: 58; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 11; 
Hong Kong (1); 
Ireland (2); 
Luxembourg (1); 
Singapore (5); 
U.S. Virgin Islands (1); 
Virgin Islands (1)[C]. 

Contractor: Johnson & Johnson; 
Rank by federal contract obligations: 90; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $170,246; 
Number of foreign subsidiaries: 175; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 38; 
Hong Kong (2); 
Ireland (16); 
Luxembourg (1); 
Panama (1); 
Singapore (1); 
Switzerland (17). 

Contractor: KBR, Inc.; 
Rank by federal contract obligations: 8; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $4,794,248; 
Number of foreign subsidiaries: 5; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Kraft Foods, Inc.; 
Rank by federal contract obligations: 54; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $348,708; 
Number of foreign subsidiaries: 255; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 36; 
Bahamas (1); 
Bahrain (1); 
British Virgin Islands (2); 
Cayman Islands (1); 
Costa Rica (3); 
Hong Kong (4); 
Ireland (4); 
Latvia (1); 
Liberia (2);
Luxembourg (2); 
Panama (1); 
Singapore (8); 
Switzerland (6). 

Contractor: L-3 Communications Holdings, Inc.; 
Rank by federal contract obligations: 6; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $6,636,283; 
Number of foreign subsidiaries: 90; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 15; 
Barbados (1); 
Bermuda (1); 
Cayman Islands (1); 
Costa Rica (1); 
Hong Kong (2); 
Ireland (1); 
Singapore (5); 
U.S. Virgin Islands (3). 

Contractor: Lockheed Martin Corporation; 
Rank by federal contract obligations: 1; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $32,784,881; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Mantech International Corporation; 
Rank by federal contract obligations: 37; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $546,746; 
Number of foreign subsidiaries: 7; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Panama (1). 

Contractor: McDermott International, Inc.; 
Rank by federal contract obligations: 77; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $199,070; 
Number of foreign subsidiaries: 5; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 5; 
Panama (5). 

Contractor: McKesson Corporation; 
Rank by federal contract obligations: 9; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $4,692,110; 
Number of foreign subsidiaries: 1; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Ireland (1). 

Contractor: Merck & Co., Inc.; 
Rank by federal contract obligations: 25; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,418,213; 
Number of foreign subsidiaries: 199; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 44; 
Barbados (2); 
Bermuda (14); 
Cyprus (1); 
Hong Kong (3); 
Ireland (7); 
Latvia (1); 
Lebanon (1); 
Luxembourg (2); 
Panama (2); 
Singapore (6); 
Switzerland (5). 

Contractor: Motorola, Inc.; 
Rank by federal contract obligations: 58; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $321,347; 
Number of foreign subsidiaries: 24; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 4; 
Hong Kong (1); 
Singapore (3). 

Contractor: Navistar International Corporation; 
Rank by federal contract obligations: 61; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $304,016; 
Number of foreign subsidiaries: 4; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Cayman Islands (1). 

Contractor: NCI, Inc.; 
Rank by federal contract obligations: 75; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $208,545; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Northrop Grumman Corporation; 
Rank by federal contract obligations: 3; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $15,991,673; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Olin Corporation; 
Rank by federal contract obligations: 64; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $271,445; 
Number of foreign subsidiaries: 7; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Bermuda (1). 

Contractor: Oracle Corporation; 
Rank by federal contract obligations: 93; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $164,665; 
Number of foreign subsidiaries: 297; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 77; 
Barbados (3); Bermuda (1); 
British Virgin Islands (1); 
Cayman Islands (5); 
Costa Rica (1); 
Cyprus (1); 
Hong Kong (12); 
Ireland (22); 
Isle of Man (1); 
Jersey (1); 
Luxembourg (6); 
Mauritius (1); 
Netherlands Antilles (1); 
Singapore (16); 
Switzerland (5). 

Contractor: Orbital Sciences Corporation; 
Rank by federal contract obligations: 96; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $158,483; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Oshkosh Truck Corporation; 
Rank by federal contract obligations: 16; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $2,339,964; 
Number of foreign subsidiaries: 52; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 6; 
Barbados (2); 
Cayman Islands (2); 
Hong Kong (1); 
Mauritius (1). 

Contractor: Owens & Minor, Inc.; 
Rank by federal contract obligations: 66; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $257,284; 
Number of foreign subsidiaries: 1; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
British Virgin Islands (1). 

Contractor: Pepco Holdings, Inc.; 
Rank by federal contract obligations: 71; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $234,070; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: PepsiCo, Inc.; 
Rank by federal contract obligations: 73; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $218,353; 
Number of foreign subsidiaries: 356; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 70; 
Bahamas (1); 
Barbados (1); 
Bermuda (13); 
Cayman Islands (2); 
Costa Rica (2); 
Cyprus (5); 
Gibraltar (1); 
Hong Kong (10); 
Ireland (9); 
Jordan (1); 
Latvia (1); 
Liechtenstein (1); 
Luxembourg (7); 
Mauritius (2); 
Netherlands Antilles (6); 
Panama (1); 
Singapore (1); 
Switzerland (6). 

Contractor: Perot Systems Corporation; 
Rank by federal contract obligations: 60; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $312,643; 
Number of foreign subsidiaries: 38; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 13; 
Bermuda (2); 
Hong Kong (1); 
Ireland (2); 
Luxembourg (1); 
Mauritius (1); 
Singapore (3); 
Switzerland (3). 

Contractor: Point Blank Solutions, Inc.; 
Rank by federal contract obligations: 76; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $206,202; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: The Procter & Gamble Company; 
Rank by federal contract obligations: 59; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $312,828; 
Number of foreign subsidiaries: 581; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 83; 
Barbados (1); 
Belize (1); 
Bermuda (5); 
British Virgin Islands (2); 
Cayman Islands (2); 
Costa Rica (3); 
Hong Kong (10); 
Ireland (11); 
Latvia (1); 
Lebanon (2); 
Liechtenstein (1); 
Luxembourg (6); 
Panama (3); 
Singapore (11); 
Switzerland (24). 

Contractor: Raytheon Company; 
Rank by federal contract obligations: 5; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $11,793,187; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Res-Care, Inc.; 
Rank by federal contract obligations: 95; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $160,359; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Rockwell Collins, Inc.; 
Rank by federal contract obligations: 26; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,219,054; 
Number of foreign subsidiaries: 20; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 4; 
Bermuda (2); 
Luxembourg (1); 
Singapore (1). 

Contractor: The Shaw Group, Inc.[B]; 
Rank by federal contract obligations: 42; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $491,729; 
Number of foreign subsidiaries: Unknown; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: Unknown. 

Contractor: SI International, Inc.[B]; 
Rank by federal contract obligations: 82; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $191,954; 
Number of foreign subsidiaries: Unknown; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: Unknown. 

Contractor: Sprint Nextel Corporation; 
Rank by federal contract obligations: 99; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $142,754; 
Number of foreign subsidiaries: 59; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 7; 
Bermuda (1); 
Hong Kong (2); 
Ireland (1); 
Singapore (1); 
Switzerland (2). 

Contractor: SRA International, Inc.; 
Rank by federal contract obligations: 35; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $661,871; 
Number of foreign subsidiaries: 10; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Stanley, Inc.; 
Rank by federal contract obligations: 57; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $321,922; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: SYSCO Corporation; 
Rank by federal contract obligations: 88; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $173,586; 
Number of foreign subsidiaries: 31; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Hong Kong (1). 

Contractor: Teledyne, Inc.; 
Rank by federal contract obligations: 51; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $372,709; 
Number of foreign subsidiaries: 15; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 2; 
Bermuda (1); 
Singapore (1). 

Contractor: Telos Corporation; 
Rank by federal contract obligations: 84; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $183,777; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Tesoro Corporation; 
Rank by federal contract obligations: 74; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $210,342; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Tetra Tech, Inc.; 
Rank by federal contract obligations: 36; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $604,922; 
Number of foreign subsidiaries: 6; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
British Virgin Islands (1). 

Contractor: Textron, Inc.; 
Rank by federal contract obligations: 15; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $2,364,772; 
Number of foreign subsidiaries: 98; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 5; 
Barbados (1); 
Singapore (2); 
Switzerland (2). 

Contractor: Tyson Foods, Inc.; 
Rank by federal contract obligations: 55; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $326,553; 
Number of foreign subsidiaries: 41; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 6; 
Bermuda (1); 
Cayman Islands (1); 
Gibraltar (1); 
Hong Kong (1); 
Luxembourg (2). 

Contractor: Unisys Corporation; 
Rank by federal contract obligations: 33; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $807,003; 
Number of foreign subsidiaries: 3; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: United Parcel Service, Inc.; 
Rank by federal contract obligations: 100; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $140,771; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: United Technologies Corporation; 
Rank by federal contract obligations: 7; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $5,714,807; 
Number of foreign subsidiaries: 93; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 12; 
Cayman Islands (1); 
Hong Kong (2); 
Ireland (1); 
Luxembourg (4); 
Singapore (4). 

Contractor: URS Corporation; 
Rank by federal contract obligations: 12; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $2,643,385; 
Number of foreign subsidiaries: 276; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 24; 
Bahrain (2); 
Bermuda (4); 
Hong Kong (2); 
Ireland (2); 
Jordan (4); 
Singapore (4); 
U.S. Virgin Islands (2); 
Virgin Islands (4)[C]. 

Contractor: Valero Energy Corporation; 
Rank by federal contract obligations: 31; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $1,027,334; 
Number of foreign subsidiaries: 23; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 11; 
Aruba (5); 
Bermuda (1); 
British Virgin Islands (3); 
Cayman Islands (2). 

Contractor: Verizon Communications, Inc.; 
Rank by federal contract obligations: 47; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $428,654; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Viasat, Inc.; 
Rank by federal contract obligations: 80; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $195,071; 
Number of foreign subsidiaries: 5; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 1; 
Switzerland (1). 

Contractor: VSE Corporation; 
Rank by federal contract obligations: 34; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $706,444; 
Number of foreign subsidiaries: 0; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 0. 

Contractor: Wyeth-Ayerst International, Inc.; 
Rank by federal contract obligations: 39; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $519,750; 
Number of foreign subsidiaries: 32; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 4; 
Ireland (2); 
Singapore (1); 
Switzerland (1). 

Contractor: Xerox Corporation; 
Rank by federal contract obligations: 86; 
Federal contract obligations for fiscal year 2007 (dollars in 
thousands)[A]: $179,963; 
Number of foreign subsidiaries: 164; 
Number and locations of subsidiaries in jurisdictions listed as tax 
havens or financial privacy jurisdictions: 33; 
Barbados (4); 
Bermuda (8); 
Hong Kong (1); 
Ireland (12); 
Jersey (1); 
Luxembourg (2); 
Mauritius (1); 
Singapore (1); 
Switzerland (2); 
Turks and Caicos Islands (1). 

Sources: USASpending.gov, Exhibit 21s filed with the SEC, and 
jurisdictions listed as tax havens or financial privacy jurisdictions. 

[A] Federal contract obligations are estimates. The actual contract 
obligations may be greater. 

[B] Flir Systems, Inc. did not list locations for some subsidiaries and 
The Shaw Group, Inc. and SI International, Inc. did not list locations 
for any subsidiaries. 

[C] Goodrich Corporation, ITT Corporation, Jacobs Engineering Group, 
Inc., and URS Corporation did not always differentiate between the U.S. 
Virgin Islands and the British Virgin Islands. Therefore, for the 
purpose of this list, they are listed as Virgin Islands. 

[End of table] 

[End of section] 

Appendix IV: Comments from the Department of the Treasury: 

Department Of The Treasury: 
Washington, D.C, 20220: 

Mr. James R. White: 
Director, Tax Issues: 
Strategic Issues Team
General Accountability Office: 
441 G St., NW: 
Washington, DC 20548: 

Dear Mr. White: 

The Treasury Department takes offshore tax evasion by individuals and 
corporations very seriously, and has taken strong administrative and 
regulatory steps to address the problem. In addition, the Treasury 
Department will continue to expand our tax treaty and tax information 
exchange agreement network so that the United States can obtain the 
information about individuals and corporations and the administrative 
assistance from other countries that the United States needs to enforce 
its tax laws. In the "Declaration of the Summit on Financial Markets 
and the World Economy," released on November 15, 2008, the Leaders of 
the Group of Twenty, which includes the United States, reiterated the 
need to "continue efforts to promote tax information exchange" and that 
"[Hack of transparency and a failure to exchange tax information should 
be vigorously addressed." The United States has long been a leader in 
encouraging tax information exchange and greater transparency, and will 
continue to be so. 

We remain concerned, however, about the use of lists of so-called "tax 
havens." In the draft report entitled "International Taxation: Large 
U.S. Corporations and Federal Contractors with Subsidiaries in 
Jurisdictions Listed as Tax Havens or Financial Privacy Jurisdictions" 
(GAO-09-157), the Government Accountability Office (GAO) correctly 
notes that there is no agreed-upon definition of tax haven or list of 
jurisdictions that should be considered tax havens. Nonetheless, the 
draft report proceeds to characterize jurisdictions as tax havens by 
including them on a tax havens list. Although the report asserts that 
the GAO did not develop its own definition of tax haven or its own list 
of jurisdictions, the GAO does indeed produce such a list in the draft 
report, compiled from three other lists. 

One list used in the draft report is that released in 2000 by the 
Organisation for Economic Co-operation and Development (OECD) of 
jurisdictions that have committed to improving transparency and 
effective exchange of information for tax matters and jurisdictions 
that have not made such a commitment. Since that list of jurisdictions 
was released, however, the vast majority of listed jurisdictions have 
committed to meeting OECD standards of transparency and effective 
exchange of information Moreover, many of the jurisdictions on that 
2000 OECD list have signed tax information exchange agreements with the 
United States. Thus, the 2000 OECD list includes countries from which 
we can obtain information and that have committed to establishing 
effective information exchange. Although the draft report acknowledges 
that the list is outdated, the report surprisingly rises the lack of 
any "updated" list from the OECD as the rationale for using the out-of-
date list. 

In addition to using a list produced by the National Bureau of Economic 
Research (NBER). the GAO also uses an Internal Revenue Service (IRS) 
"John Doe" summons issued in 2005 to compile its "tax havens" list. Use 
of the IRS summons is particularly problematic. The IRS summons lists 
34 jurisdictions from which the IRS was seeking information about 
individuals who had signature authority over bank accounts or credit 
cards issued by, through, or on behalf of financial institutions in 
those jurisdictions. The list of jurisdictions in that summons was put 
together for a very specific purpose and was not at all intended to 
suggest a general list of jurisdictions that the Treasury Department 
and IRS consider tax havens. Moreover, the specific nature of the John 
Doe summons - which focused on individual taxpayers - makes use of the 
list of countries in that summons all the more inapposite since the 
draft GAO report deals not with individuals but with foreign 
subsidiaries of U.S. corporations. Because the problems identified in 
the draft report and the John Doe summons are so different, it is 
unclear what relevance the list of countries in the John Doe summons 
has in the context of the report. For those reasons, we requested that 
the GAO not use the summons list as a source for its tax havens list. 
Moreover, we are concerned that such use will lead others to believe 
that the Treasury Department intended the summons list to be a list of 
tax havens. 

Although the Treasury Department appreciates the GAO's efforts to 
simplify what is a complex area, oversimplification can lead to 
misunderstandings and mistakes The lack of a universally accepted list 
of "tax havens" simply reflects the fact that the term does not have a 
universally accepted definition. That lack of consensus results from 
the fact that the different problems presented by so-called tax havens 
often involve different groups of countries. For example, the list of 
countries that will not agree to exchange tax information is not co-
extensive with the list of countries that do not impose an income tax. 
Even though coming up with a list of tax haven countries has 
significant appeal, any list of counties is likely to be under-
inclusive as well as over-inclusive, depending on the problem meant to 
be addressed. Moreover, because any such list is likely to be regarded 
as a blacklist and may be used as the basis for the imposition of 
sanctions or other negative measures, such a list may inappropriately 
negatively affect our economic and other relations with listed 
countries. 

Sincerely, 

Signed by: 

Michael Mundaca: 
Deputy Assistant Secretary (International Tax Affairs): 

[End of section] 

Appendix V: Comments from the Internal Revenue Service: 

Department Of The Treasury: 
Commissioner: 
Internal Revenue Service: 
Washington, D.C. 20224: 

December 11, 2008: 

Mr. James R. White: 
Director, Tax Issues
U.S. Government Accountability Office: 
441 G Street, N.W. 
Washington, DC 20548: 

Dear Mr. White: 

Thank you for providing your draft report, International Taxation: 
Large U.S. Corporations and Federal Contractors with Subsidiaries 
Listed as Tax Havens or Financial Privacy Jurisdictions (GAO-09-157). 
The issues involved in the cross-border arena, including those 
involving large U.S. corporations and their foreign subsidiaries, am 
some of the most complex that the Service confronts. I have made 
international issues like these a top priority for the IRS, in addition 
to our continued efforts combating offshore tax evasion. 

Because the landscape is complex, I welcome the support provided by 
independent research and analysis that complements our own initiatives 
in this area. Accordingly, I very much appreciate GAO's work on this 
report and on this topic more generally. 

If the IRS can provide any additional support to your efforts, please 
contact Barry B. Shott, Deputy Commissioner (International), Large and 
Mid-Size Business Division at 202-435-5000. 

Sincerely, 

Signed by: Douglas H. Shulman: 

[End of section] 

Appendix VI: GAO Contact and Staff Acknowledgments: 

GAO Contact: 

James R. White, (202) 512-9110 or whitej@gao.gov: 

Acknowledgments: 

In addition to the contact named above, Jonda Van Pelt, Assistant 
Director; Joanna Berry; Michele Fejfar; Julia Kennon; Audrey Ruge; 
Shellee Soliday; A. J. Stephens; and Megan Sullivan made key 
contributions to this report. 

[End of section] 

Footnotes: 

[1] Transfer prices are the prices related companies, such as parents 
and subsidiaries, charge on intercompany transactions. These prices 
affect the distribution of profits between the two companies. 

[2] See Department of the Treasury, Report to the Congress on Earnings 
Stripping, Transfer Pricing, and U.S. Income Tax Treaties (November 
2007). 

[3] Income shifting is transferring gross income from one taxpayer to 
another taxpayer in a lower tax bracket or jurisdiction, thereby 
reducing the overall liability of the original taxpayer. 

[4] GAO, U.S. Multinational Corporations: Effective Tax Rates Are 
Correlated with Where Income Is Reported, [hyperlink, 
http://www.gao.gov/products/GAO-08-950] (Washington, D.C.: Aug. 12, 
2008), which includes information for 17 foreign locations. For a GAO 
review of the business reasons for establishing a business in a 
specific jurisdiction, see GAO, Cayman Islands: Business and Tax 
Advantages Attract U.S. Persons and Enforcement Challenges Exist, 
[hyperlink, http://www.gao.gov/products/GAO-08-778] (Washington, D.C.: 
July 24, 2008). 

[5] GAO, International Taxation: Information on Federal Contractors 
With Offshore Subsidiaries, [hyperlink, 
http://www.gao.gov/products/GAO-04-293] (Washington, D.C.: Feb. 2, 
2004). 

[6] These characteristics include no or nominal taxes; lack of 
effective exchange of tax information with foreign tax authorities; 
lack of transparency in the operation of legislative, legal, or 
administrative provisions; no requirement for a substantive local 
presence; or self-promotion as an offshore financial center. 

[7] These sources describe offshore financial centers as jurisdictions 
that have a high level of nonresident financial activity and that may 
have low or no taxes, light and flexible regulation, and a high level 
of client confidentially, and describe financial privacy jurisdictions 
as jurisdictions that have strict bank secrecy laws that persons can 
use to shield their wealth from taxation in their home countries. 

[8] OECD removes the Marshall Islands from its List of Unco-operative 
Tax Havens, August 7, 2007, which includes a link to 35 Jurisdictions 
Committed to Improving Transparency and Establishing Effective Exchange 
of Information in Tax Matters. 

[9] Dhammika Dharmapala and James R. Hines, Jr., Which Countries Become 
Tax Havens? (National Bureau of Economic Research, Cambridge, Mass.: 
December 2006). 

[10] In the Matter of Tax Liabilities: of John Does, et al., No. 5:05- 
cv-04167-JW (N.D. Cal. 2006). 

[11] The court did not address whether these jurisdictions were in fact 
tax havens in its ruling. 

[12] We used the 2008 Fortune 500 list, which is based on revenues for 
2007. The revenues were for the corporations' fiscal years, which ended 
on or before January 31, 2008. 

[13] USASpending.gov is a government Web site available to the public 
that provides information about federal contracts. It utilizes data 
from FPDS-NG and aggregates subsidiaries and divisions by parent 
company using information provided by Dun and Bradstreet. We used 
fiscal year 2007 contract obligations. 

[14] We used information filed with the SEC to determine where 
subsidiaries were located. The SEC only requires public corporations to 
report significant subsidiaries. They may omit information on 
subsidiaries that, when considered in the aggregate, would not 
constitute significant subsidiaries, and on consolidated wholly owned 
multiple subsidiaries carrying on the same line of business (such as 
chain stores). Therefore, these corporations could have additional 
subsidiaries not considered significant in jurisdictions listed as tax 
havens or financial privacy jurisdictions. For more information about 
the definition of significant subsidiaries, see app. I. 

[15] GAO, International Taxation: Information on Federal Contractors 
With Offshore Subsidiaries, [hyperlink, 
http://www.gao.gov/products/GAO-04-293] (Washington, D.C.: Feb. 2, 
2004). 

[16] OECD is a forum where the governments of 30 market democracies 
work together to address economic, social, and governance challenges of 
globalization. 

[17] The FSF was convened in April 1999 at the initiative of the G7 
Finance Ministers and Central Bank Governors in order to promote 
international financial stability, improve the functioning of financial 
markets, and reduce the tendency for financial shocks to propagate from 
country to country, thus destabilizing the world economy. 

[18] Offshore financial centers are generally described as 
jurisdictions that have a high level of nonresident financial activity, 
and may have characteristics including low or no taxes, light and 
flexible regulation, and a high level of client confidentiality. 

[19] Financial privacy jurisdictions are generally described as 
jurisdictions that have strict bank secrecy laws that persons can use 
to shield their wealth from taxation in their home countries. 

[20] In addition, the IMF had a list of jurisdictions that were 
offshore financial centers. This list was based in part on work done by 
the FSF. However, IMF is no longer maintaining a list of offshore 
financial centers because it believes globalization is blurring the 
distinction between offshore financial centers and other financially 
active jurisdictions and there are no agreed-upon objective criteria 
for defining offshore financial centers. 

[21] OECD removes the Marshall Islands from its List of Unco-operative 
Tax Havens, August 7, 2007, which includes a link to 35 Jurisdictions 
Committed to Improving Transparency and Establishing Effective Exchange 
of Information in Tax Matters. 

[22] Dhammika Dharmapala and James R. Hines, Jr., Which Countries 
Become Tax Havens? (National Bureau of Economic Research, Cambridge, 
Mass.: December 2006). 

[23] James R. Hines, Jr. and Eric M. Rice, "Fiscal Paradise: Foreign 
Tax Havens and American Business," The Quarterly Journal of Economics, 
vol. 109, no. 1 (1994): 149-182. 

[24] A John Doe summons is a third-party summons that does not identify 
the person with respect to whose tax liability the summons is issued 
and may be served only after a court proceeding. A third-party summons 
is a summons requesting information on a person or persons other than 
the recipient of the summons. To obtain a John Doe summons, the United 
States must establish that (1) the summons relates to the investigation 
of a particular person or ascertainable group or class of persons whose 
identity is unknown, (2) there is a reasonable basis for believing that 
such person or group or class of persons may fail or may have failed to 
comply with any provision of any internal revenue law, and (3) the 
information sought to be obtained from the examination of the records 
or testimony and the identity of the John Doe(s) is not readily 
available from other sources. 26 U.S.C. § 7609(f). 

[25] The court did not address whether these jurisdictions were in fact 
tax havens in its ruling. 

[26] According to an IRS Office of Research official, the office used a 
list of tax havens in a research project. The list was developed many 
years ago and does not include any jurisdictions that are not included 
in the John Doe summons. 

[27] OECD does not systematically review this list to determine if 
jurisdictions should be removed from it. 

[28] Dharmapala and Hines, Which Countries Become Tax Havens? NBER, 
founded in 1920, is a private, nonprofit, nonpartisan research 
organization dedicated to promoting a greater understanding of how the 
economy works. NBER is committed to undertaking and disseminating 
unbiased economic research among public policymakers, business 
professionals, and the academic community and is the nation's leading 
nonprofit economic research organization. 

[29] Hines and Rice, "Fiscal Paradise: Foreign Tax Havens and American 
Business." The Quarterly Journal of Economics is the oldest 
professional journal of economics in the English language. Edited at 
Harvard University's Department of Economics, it covers all aspects of 
the field--from the journal's traditional emphasis on microtheory to 
both empirical and theoretical macroeconomics. 

[30] After deleting the Channel Islands from the list of 39 tax havens 
and adding Jersey and Guernsey, the resulting total is 40. 

[31] Andre Beauchamp, Guide Mondial des Paradis Fiscaux (Paris: 
Editions Grasset & Fasqualle, 1983). 

[32] The Economist Intelligence Unit is a global research and advisory 
firm whose mission is to provide executives with authoritative analysis 
and forecasts to make informed global decisions. 

[33] Caroline Doggart, Tax Havens and Their Uses (London: Economist 
Intelligence Unit, 1983). 

[34] In the Matter of the Tax Liabilities of John Does, No. 5:05-cv- 
04167-PVT (N.D. Cal. 2005). 

[35] In the Matter of Tax Liabilities of John Does, et al., No. 5:05- 
cv-04167-JW (N.D. Cal. 2006). 

[36] A third-party summons is a summons requesting information on a 
person or persons other than the recipient of the summons. 

[37] To obtain a John Doe summons, IRS must establish that (1) the 
summons relates to the investigation of a particular person or 
ascertainable group or class of persons whose identity is unknown, (2) 
there is a reasonable basis for believing that such person or group or 
class of persons may fail or may have failed to comply with any 
provision of any internal revenue law, and (3) the information sought 
to be obtained from the examination of the records or testimony and the 
identity of the John Doe(s) is not readily available from other 
sources. 26 U.S.C. § 7609(f). 

[38] Declaration of Barbara Kallenberg, In the Matter of the Tax 
Liabilities of John Does, No. 5:05-cv-04167-PVT (N.D. Cal. 2005). 

[39] Id. at 4-5. 

[40] Id. at 48. 

[41] Id. at 48-49. 

[42] We used the 2008 Fortune 500 list, which is based on revenues for 
2007. The revenues were for the corporations' fiscal years that ended 
on or before January 31, 2008. 

[43] USASpending.gov is a government Web site available to the public 
that provides information about federal contracts. 

[44] Subsidiaries are owned by corporations that may or may not be 
publicly traded and joint ventures are owned by two or more 
corporations that may or may not be publicly traded. 

[45] Form 10-K is used for the annual reports or transition reports 
that corporations file with the SEC according to the Securities 
Exchange Act of 1934. 15 U.S.C. §§ 78m, 78o(d); 17 C.F.R. § 249.310. 

[46] In Exhibit 21, public corporations are required to list their 
subsidiaries and the names under which they do business and the state 
or jurisdiction of incorporation or organization. 

[47] In this case, the SEC defines such income as income from 
continuing operations before income taxes, extraordinary items, and the 
cumulative effect of a change in accounting principle. 

[End of section] 

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