Potential corporate impact of ending interest expense deductibility

End of interest deductibility: who could be hurt? Below we provide a screen of the top 50 S&P 500 companies (excluding Financials, Real Estate and Utilities) by high net interest expense as a percentage of net income, which could potentially be hurt by an end to the deductibility of interest expense. Table 21: S&P 500 (ex. Financials, Real Estate & Utilities) with high net interest expense as a % of net income Ticker Company Sector Industry Net Interest Expense (% of L12M Net Income) CHTR — Charter Communications, Inc. Class A Consumer Discretionary Media 1387% DVN Devon Energy Corporation Energy Oil, Gas & Consumable Fuels 467% CXO Concho Resources Inc. Energy Oil, Gas & Consumable Fuels 357% MU Micron Technology, Inc. Information Technology Semiconductors & Semiconductor 316% FOX Freeport-McMoRan, Inc. Materials Metals & Mining 280% OKE ONEOK, Inc. Energy Oil, Gas & Consumable Fuels 135% KMI Kinder Morgan Inc Class P Energy Oil, Gas & Consumable Fuels 120% LVLT Level 3 Communications, Inc. Telecommunication Services Diversified Telecommunication 96% WYNN Wynn Resorts, Limited Consumer Discretionary Hotels Restaurants & Leisure 95% CT CenturyLink, Inc. Telecommunication Services Diversified Telecommunication 94% CF CF Industries Holdings, Inc. Materials Chemicals 92% NFX Newfield Exploration Company Energy Oil, Gas & Consumable Fuels 82% RI Transocean Ltd. Energy Energy Equipment & Services 81% NFLX Netflix, Inc. Consumer Discretionary Internet & Direct Marketing Re 80% SE Spectra Energy Corp Energy Oil, Gas & Consumable Fuels 18% TDG TransDigm Group Incorporated Industrials Aerospace & Defense 17% HCA HCA Holdings, Inc. Health Care Health Care Providers & Servic 63% MPC Marathon Petroleum Corporation Energy Oil, Gas & Consumable Fuels 56% CAT Caterpillar Inc. Industrials Machinery 56% EVHC Envision Healthcare Corp. Health Care Health Care Providers & Servic 55% URI United Rentals, Inc. Industrials Trading Companies & Distributo 54% DVA DaVita Inc. Health Care Health Care Providers & Servic 52% TGNA — TEGNA, Inc. Consumer Discretionary Media 52% DE Deere & Company Industrials Machinery 50% MAS Masco Corporation Industrials Building Products 49% ENDP — Endo International Ple Health Care Pharmaceuticals 48% COTY Coty Inc. Class A Consumer Staples Personal Products 47% IP International Paper Company Materials Containers & Packaging 47% R Ryder System, Inc. Industrials Road & Rail 46% DLTR Dollar Tree, Inc. Consumer Discretionary Multiline Retail 46% NEM Newmont Mining Corporation Materials Metals & Mining 46% FOX Twenty-First Century Fox, Inc. Class B Consumer Discretionary Media 46% GT Goodyear Tire & Rubber Company Consumer Discretionary Auto Components 45% RSG Republic Services, Inc. Industrials Commercial Services & Supplies 45% SEE Sealed Air Corporation Materials Containers & Packaging 45% PBI Pitney Bowes Inc. Industrials Commercial Services & Supplies 45% AN AutoNation, Inc. Consumer Discretionary Specialty Retail 44% KSS Kohl's Corporation Consumer Discretionary Multiline Retail 44% F Ford Motor Company Consumer Discretionary Automobiles 43% VIAB Viacom Inc. Class B Consumer Discretionary Media 42% MNK Mallinckrodt Ple Health Care Pharmaceuticals 41% ADS Alliance Data Systems Corporation Information Technology IT Services 41% WRK WestRock Co. Materials Containers & Packaging 40% VRTX — Vertex Pharmaceuticals Incorporated Health Care Biotechnology 39% BLL Ball Corporation Materials Containers & Packaging 37% GE General Electric Company Industrials Industrial Conglomerates 37% M Macy's Inc Consumer Discretionary Multiline Retail 37% CVX Chevron Corporation Energy Oil, Gas & Consumable Fuels 37% SLB Schlumberger NV Energy Energy Equipment & Services 37% TSO Tesoro Corporation Energy Oil, Gas & Consumable Fuels 36% Note: This screen is not a recommended list either individually or as a group of stacks. Investors should consider the fundamentals of the companies and their own individual circumstances/abjective before making any investment decisions. Source: FactSet, BofaA Merrill Lynch US Equity & US Quant Strategy Bankof America Merrill Lynch Equity Strategy Focus Point | 29 January 2017 21 HOUSE_OVERSIGHT_023089