According to KPMG, under new tax reform, interest expense deductions will work as follows: “Limit the deductibility of net business interest expense to 30% of adjusted taxable income.”
Using our Calcbench excel add-in, we looked for companies that may have their interest expense deductibility limited under the conditions outlined above. To quickly recap, we took the entire universe of firms and filtered it by firms with EBIT greater than 250 million USD in 2016. We also removed all financial firms from our list leaving us with 150+ firms.
You can do the same (or better) than what we have done.
Here is the list of firms below:
| Company | EBIT | InterestExpense | Pct of EBIT |
|---|---|---|---|
| Aecom | $383,717,000 | $258,162,000 | 67% |
| AerCap Holdings N.V. | $2,292,257,000 | $1,091,861,000 | 48% |
| Aes Corp | $1,104,000,000 | $1,431,000,000 | 130% |
| Air Lease Corp | $866,439,000 | $286,201,000 | 33% |
| Aircastle LTD | $412,165,000 | $255,660,000 | 62% |
| Alliant Energy Corp | $639,600,000 | $196,200,000 | 31% |
| Amc Entertainment Holdings, Inc. | $261,022,000 | $121,537,000 | 47% |
| American Electric Power Co Inc | $1,336,500,000 | $877,200,000 | 66% |
| Amerigas Partners Lp | $373,715,000 | $164,095,000 | 44% |
| Andeavor Logistics Lp | $500,000,000 | $191,000,000 | 38% |
| Arconic Inc. | $913,000,000 | $499,000,000 | 55% |
| Avis Budget Group, Inc. | $482,000,000 | $203,000,000 | 42% |
| Axalta Coating Systems Ltd. | $265,600,000 | $178,200,000 | 67% |
| BALL Corp | $463,000,000 | $338,000,000 | 73% |
| Berkshire Hathaway Energy Co | $4,584,000,000 | $1,854,000,000 | 40% |
| Berry Global Group Inc | $599,000,000 | $291,000,000 | 49% |
| Boardwalk Pipeline Partners, LP | $485,200,000 | $182,800,000 | 38% |
| Borgwarner Inc | $268,800,000 | $84,600,000 | 31% |
| Boston Scientific Corp | $410,000,000 | $233,000,000 | 57% |
| Caesars Entertainment Resort Properties, LLC | $258,000,000 | $396,000,000 | 153% |
| California Resources Corp | $529,000,000 | $328,000,000 | 62% |
| Calpine Corp | $790,000,000 | $631,000,000 | 80% |
| Caterpillar Inc | $644,000,000 | $505,000,000 | 78% |
| Centerpoint Energy Inc | $1,024,000,000 | $338,000,000 | 33% |
| Centurylink, Inc | $2,338,000,000 | $1,318,000,000 | 56% |
| Charter Communications, Inc. /MO/ | $3,319,000,000 | $2,499,000,000 | 75% |
| Claires Stores Inc | $251,935,000 | $200,187,000 | 79% |
| Clear Channel Outdoor Holdings, Inc. | $565,691,000 | $374,892,000 | 66% |
| Cleveland-Cliffs Inc. | $407,500,000 | $200,500,000 | 49% |
| Cms Energy Corp | $1,255,000,000 | $435,000,000 | 35% |
| CNH Industrial N.V. | $1,019,000,000 | $1,028,000,000 | 101% |
| Columbia Pipeline Group, Inc. | $352,700,000 | $121,200,000 | 34% |
| CommScope Holding Company, Inc. | $544,579,000 | $277,534,000 | 51% |
| Dana Inc | $332,000,000 | $113,000,000 | 34% |
| DCP Midstream, LP | $461,000,000 | $321,000,000 | 70% |
| Dish Dbs Corp | $2,231,641,000 | $825,615,000 | 37% |
| Dte Energy Co | $1,557,000,000 | $472,000,000 | 30% |
| Duke Energy CORP | $5,650,000,000 | $1,916,000,000 | 34% |
| EchoStar CORP | $389,225,000 | $123,630,000 | 32% |
| Emera Inc | $626,558,200 | $442,143,000 | 71% |
| Enbridge Energy Partners Lp | $405,100,000 | $445,500,000 | 110% |
| Enbridge Inc | $3,054,187,800 | $1,201,722,000 | 39% |
| Energy Transfer Equity, L.P. | $2,075,000,000 | $1,803,000,000 | 87% |
| Energy Transfer Partners, L.P. | $706,000,000 | $268,000,000 | 38% |
| Energy Transfer, LP | $1,755,000,000 | $1,317,000,000 | 75% |
| Envision Healthcare Corp | $347,000,000 | $142,400,000 | 41% |
| EP Energy Corp | $286,000,000 | $312,000,000 | 109% |
| Exelon Corp | $3,525,000,000 | $1,536,000,000 | 44% |
| Expedia, Inc. | $430,022,000 | $173,148,000 | 40% |
| Extended Stay America, Inc. | $362,240,000 | $164,537,000 | 45% |
| Federal-Mogul Holdings LLC | $290,000,000 | $145,000,000 | 50% |
| Fidelity National Information Services, Inc. | $1,278,000,000 | $392,000,000 | 31% |
| First Data Corp | $1,549,000,000 | $1,068,000,000 | 69% |
| Fortis Inc. | $1,160,908,800 | $512,432,400 | 44% |
| Frontier Communications Corp | $908,000,000 | $1,531,000,000 | 169% |
| Gatx Corp | $453,500,000 | $148,100,000 | 33% |
| Genesis Energy Lp | $254,371,000 | $139,947,000 | 55% |
| HD Supply Holdings, Inc. | $612,000,000 | $269,000,000 | 44% |
| Hilton Worldwide Holdings Inc. | $938,000,000 | $394,000,000 | 42% |
| Hrg Group, Inc. | $569,400,000 | $402,500,000 | 71% |
| Hughes Satellite Systems Corp | $370,080,000 | $187,198,000 | 51% |
| Huntsman CORP | $650,000,000 | $202,000,000 | 31% |
| Hydro One Inc | $954,575,400 | $296,273,600 | 31% |
| iHeartMedia, Inc. | $1,559,505,000 | $1,849,982,000 | 119% |
| IHS Markit Ltd. | $260,400,000 | $119,400,000 | 46% |
| Intelsat S.A. | $1,948,599,000 | $938,501,000 | 48% |
| International Game Technology PLC | $779,841,000 | $469,268,000 | 60% |
| International Paper Co /NEW/ | $1,476,000,000 | $520,000,000 | 35% |
| ITC Holdings Corp. | $554,000,000 | $211,000,000 | 38% |
| J C Penney Co Inc | $365,000,000 | $363,000,000 | 99% |
| Kellogg Co | $1,333,000,000 | $406,000,000 | 30% |
| Kinder Morgan, Inc. | $3,444,000,000 | $1,806,000,000 | 52% |
| Level 3 Parent, LLC | $1,384,000,000 | $546,000,000 | 39% |
| Liberty Global plc | $3,187,800,000 | $2,638,400,000 | 83% |
| Lifepoint Health, Inc. | $376,000,000 | $171,200,000 | 46% |
| Macquarie Infrastructure Corp | $342,927,000 | $116,933,000 | 34% |
| Mallinckrodt plc | $616,700,000 | $384,600,000 | 62% |
| Mediacom Broadband Llc | $250,611,000 | $78,725,000 | 31% |
| Melco Resorts & Entertainment LTD | $292,712,000 | $223,567,000 | 76% |
| MGM Resorts International | $1,953,950,000 | $694,773,000 | 36% |
| Mondelez International, Inc. | $2,569,000,000 | $1,115,000,000 | 43% |
| Mplx Lp | $632,000,000 | $210,000,000 | 33% |
| Mylan N.V. | $576,500,000 | $454,800,000 | 79% |
| Navistar International Corp | $295,000,000 | $327,000,000 | 111% |
| NCL CORP Ltd. | $920,647,000 | $276,859,000 | 30% |
| Ncr Corp | $549,000,000 | $170,000,000 | 31% |
| Netflix Inc | $410,621,000 | $150,114,000 | 37% |
| Newell Brands Inc | $1,219,000,000 | $404,500,000 | 33% |
| Nexstar Media Group, Inc. | $286,753,000 | $117,163,000 | 41% |
| NGL Energy Partners LP | $296,291,000 | $150,478,000 | 51% |
| Nisource Inc/DE | $510,200,000 | $349,500,000 | 69% |
| Northwestern Corp | $251,495,000 | $94,970,000 | 38% |
| Norwegian Cruise Line Holdings Ltd. | $917,162,000 | $276,859,000 | 30% |
| Novelis Inc. | $491,000,000 | $294,000,000 | 60% |
| NRG Yield, Inc. | $281,000,000 | $280,000,000 | 100% |
| Oglethorpe Power Corp | $312,567,000 | $262,222,000 | 84% |
| On Semiconductor Corp | $321,400,000 | $145,300,000 | 45% |
| Oncor Electric Delivery Co Llc | $777,000,000 | $336,000,000 | 43% |
| Oneok Inc /NEW/ | $1,427,607,000 | $469,651,000 | 33% |
| Open Text Corp | $368,675,000 | $119,124,000 | 32% |
| Owens Illinois Inc /DE/ | $628,000,000 | $272,000,000 | 43% |
| Party City Holdco Inc. | $276,094,000 | $89,380,000 | 32% |
| Penn National Gaming Inc | $555,674,000 | $459,243,000 | 83% |
| PG&E Corp | $2,268,000,000 | $829,000,000 | 37% |
| Plains All American Pipeline Lp | $1,222,000,000 | $467,000,000 | 38% |
| Plains Gp Holdings Lp | $1,218,000,000 | $480,000,000 | 39% |
| Platform Specialty Products Corp | $327,600,000 | $375,700,000 | 115% |
| Pnm Resources Inc | $301,514,000 | $128,633,000 | 43% |
| Portland General Electric Co /OR/ | $355,000,000 | $112,000,000 | 32% |
| Post Holdings, Inc. | $276,400,000 | $306,500,000 | 111% |
| Puget Energy Inc /WA | $808,242,000 | $355,139,000 | 44% |
| Red Rock Resorts, Inc. | $304,176,000 | $140,189,000 | 46% |
| Regal Entertainment Group | $409,800,000 | $128,100,000 | 31% |
| Rite Aid Corp | $480,436,000 | $431,991,000 | 90% |
| Rowan Companies Plc | $477,300,000 | $155,500,000 | 33% |
| Sabre Corp | $486,286,000 | $158,251,000 | 33% |
| Scana Corp | $1,116,000,000 | $342,000,000 | 31% |
| Select Medical Holdings Corp | $350,815,000 | $170,081,000 | 48% |
| Sensata Technologies Holding N.V. | $487,263,000 | $165,818,000 | 34% |
| Service Corp International | $488,751,000 | $162,093,000 | 33% |
| Servicemaster Global Holdings Inc | $388,000,000 | $153,000,000 | 39% |
| Shire plc | $937,300,000 | $469,600,000 | 50% |
| Sinclair Broadcast Group Inc | $584,033,000 | $211,143,000 | 36% |
| Spectra Energy Corp. | $1,830,000,000 | $594,000,000 | 32% |
| Spectrum Brands Holdings, Inc. | $647,600,000 | $250,000,000 | 39% |
| SPRINT Corp | $1,724,000,000 | $2,495,000,000 | 145% |
| SS&C Technologies Holdings Inc | $292,070,000 | $129,942,000 | 44% |
| Station Casinos LLC | $310,088,000 | $140,189,000 | 45% |
| Surgery Partners, Inc. | $285,177,000 | $100,571,000 | 35% |
| T-Mobile US, Inc. | $3,796,000,000 | $1,730,000,000 | 46% |
| Teekay Corp | $389,277,000 | $282,966,000 | 73% |
| Telephone & Data Systems Inc /DE/ | $251,000,000 | $170,000,000 | 68% |
| Tenet Healthcare Corp | $1,227,000,000 | $979,000,000 | 80% |
| Tennessee Valley Authority | $2,369,000,000 | $1,136,000,000 | 48% |
| Toys R Us Inc | $460,000,000 | $457,000,000 | 99% |
| Transcanada Corp | $2,142,693,000 | $1,510,088,400 | 70% |
| Transcanada Pipelines Ltd | $2,153,274,200 | $1,456,426,600 | 68% |
| TransDigm Group INC | $1,251,966,000 | $483,850,000 | 39% |
| Transocean Ltd. | $1,323,000,000 | $409,000,000 | 31% |
| United Rentals Inc /DE | $1,420,000,000 | $511,000,000 | 36% |
| US Foods Holding Corp. | $360,189,000 | $229,080,000 | 64% |
| Usg Corp | $415,000,000 | $145,000,000 | 35% |
| Vector Group Ltd | $269,411,000 | $142,982,000 | 53% |
| Wendy’s Co | $315,769,000 | $114,802,000 | 36% |
| West Corp | $408,091,000 | $148,627,000 | 36% |
| Western Digital Corp | $1,590,000,000 | $847,000,000 | 53% |
| Western Refining, Inc. | $364,473,000 | $123,291,000 | 34% |
| Western Union CO | $490,700,000 | $152,500,000 | 31% |
| WestRock Co | $501,300,000 | $256,700,000 | 51% |
| Williams Companies Inc | $779,000,000 | $1,217,000,000 | 156% |
| Williams Partners L.P. | $1,359,000,000 | $949,000,000 | 70% |
| Windstream Holdings, Inc. | $319,500,000 | $860,600,000 | 269% |
| Wynn Resorts Ltd | $586,426,000 | $289,365,000 | 49% |
| XPO Logistics, Inc. | $467,900,000 | $361,100,000 | 77% |
| Zayo Group Holdings, Inc. | $345,600,000 | $241,500,000 | 70% |
| Zimmer Biomet Holdings, Inc. | $754,600,000 | $357,900,000 | 47% |