S&P 500 companies with full reporting information posted 46.1% of their sales from outside of the United States in 2011, down slightly from the 46.3% reported in 2010 and the 46.6% posted in 2009, and significantly below the 47.9% recorded in 2008 according to research published today by S&P Dow Jones Indices. The data is derived from the 252 companies within the S&P 500 that have full reporting information. 

"While the percentage of foreign sales posted a slight tick-downward in 2011, we believe that multiple changes in currency, index membership and contract details negate any strong implication to the third yearly drop," says Howard Silverblatt, S&P Dow Jones Indices' Senior Index Analyst and author of the report.

According to the report, sales to European countries declined to 11.1% of all S&P 500 sales in 2011 from 13.5% in 2010, with sales to the United Kingdom increasing to 2.4% from 1.4% in 2010. "European ex-U.K. sales fell to 8.7% in 2011 from 12.0% in 2010 representing the impact that the European recession is having on U.S. issues," adds Silverblatt.

On a country by country basis, Canada reversed its 2010 decline and accounted for 9.3% of all 2011 foreign sales, compared to 4.1% in 2010 and 7.4% in 2009.  Japan improved to 0.72% of all sales from 0.51% in 2010, which was substantially down from 1.52% in 2009.

Looking at sectors, Information Technology continues to dominate with over 56.3% of its declared sales coming from outside of the United States as Financials declined to 34.7% in 2011 from the 37.1% reported in 2010. 

S&P Dow Jones Indices also determined that total income taxes paid to foreign entities increased 21% in 2011 as U.S. payments increased 15% with S&P 500 issues sending a cumulative USD $142 billion to non-U.S. governments and USD $117 billion to the U.S. government.

"In 2011, S&P 500 issues paid more income tax to foreign countries than to the U.S. government," notes Silverblatt. "Only 45.3% of all income taxes paid by U.S. companies went to Washington in 2011 versus 54.7% paid abroad. Tax policy has become a major issue, even before election posturing started, with the current trend not working in favor of the U.S."