In the January 2004 issue of your monthly Newsletter on Annual Reports, you used the word "legalistic" three paragraphs in a row. In reference to the Form 10-K, that is. Were you aware of that? Why, for goodness' sake, would you repeat that word?

S.C.: Because of my attempt to emphasize that the 10-K isn't intended for stockholders; it's a legalistic filing, pure and simple, required of publicly held companies by the U.S.government (for corporations in the United States, at least). It's like sending stockholders the government-mandated quarterly report, the 10-Q—again, strictly a legalistic filing, not intended for public consumption. Not in that form, certainly.

You've attacked companies based off-shore, I believe it's called, lowering their annual report scores accordingly. Mind explaining why?

S.C.: Even before Tyco International (and its gross, audacious CEO) hit the headlines, I smirked that "any U.S. company that's headquartered or incorporated outside the United States isn't to be trusted, in my seldom-humble opinion." Add to Tyco, Accenture, Chicago-run but Bermuda-incorporated management-consulting company, formerly the consulting arm of disgraced Arthur Andersen; plus Foster Wheeler. A horse of the same color, if you'll pardon the cliche', is McDermott International, Panama-incorporated. (Its 2002 report, only one of the four bad guys' annuals received last year, was little more than a legalistic Form 10-K, though not so identified on the report cover. Its Cato Positive Index, indicating how much I thought of its key corporate communique', was a negative (that is, minus) 33.3%. I maintain: "Show me a U.S. company that opts to incorporate elsewhere and I'll show you a bad actor!"

how to critique an annual reports? can u give me a sample of an annual report being critique?

S.C.: My critique service is outlined online for you to visit (simply double-click on the right-pointing finger on my splash [main] page, then scroll down the two columns on my Major Contents Page). My criteria used in evaluating an annual report are available there as well. Good luck.

The Summary Annual Report seems to be catching on, yet you still haven't embraced it. Why not?

Could you please let me know the timeline for filing the Form 10-K, proxy and annual reports: (1) When the Form 10-K has referenced by incorporation some items in the proxy; (2) otherwise this question is with specific regard to the accelerated filing period of within 60 days for some companies whose fiscal year ends after December 15, 2003.

S.C.: For New York Stock Exchange-listed companies, at least, the fastest answer to your multi-part question is to refer you to the SEC website, where you can review SEC Release 33-8128. Good luck!

You just singled out Accenture for criticism. It of course is the spinoff of Chicago-headquartered Arthur Andersen, the auditing firm which I believe went belly-up. Didn't you blast them once in one of your Sid's Soapbox features?

Can you please show me the most recent annual report for General Motors. Is there a certain website that I can use to get this information?

S.C.: We have no annual reports to share; in fact, GM hasn't sent me its report for several years. You can request one from (1) GM, which no doubt has a website, or (2) the Wall Street Journal online, assuming you subscribe to its print edition. Good luck.

What is the SEC regulation for minimum typographic size in an annual report?

S.C.: As one ace producer of annual reports observed: "I've never once heard of the SEC complaining about type that's too small." There are conflicting beliefs on what the requirements are—9 point Times Roman, or, some say, 10 point. The point (no pun intended) is: Type (including leading between the lines) ought to encourage readership.

You're often critical of the news media—especially as it involves interviews with you. (Though I believe you're a former newspaperman.) Are there any interviews you would commend to those of us just learning about annual reports?

Please show me the most recent annual report for General Motors.

S.C.: I have none to share—in fact, I haven't received the GM report in at least two years. Have you tried the General Motors website? That's what I'd suggest. Good luck!

My question is about payroll. What kind of averages are out for payroll percentage of gross sales? My payroll is 9.7% of gross sales and I am trying to figure out if this is a high or low percentage.

S.C.: Sorry...I only deal with annual reports to shareholders of publicly held companies. That's my sole purview.

Give an example of annual reports in technical writing.

S.C.: None. Technical writing has no place in annual reports—only, obviously, in technical manuals.

what is corporate identity?

S.C.: The "image" a corporation has. Its annual report to shareholders should buttress that image, by (for example) using the corporate-approved typeface, colors the company is recognized by—same feel, for example, as in advertising, whether the product is computers or soft drinks or insurance.

What is Nike's total asset turnover for the fiscal years ending after May 31, 2000? And where can I get copies of recent Nike annual reports?

S.C.: I have not a clue as to what "total asset turnover" is. (My purview, solely, is the annual report to shareholders.) About recent Nike reports: Have you contacted the company? Or your stockbroker?

I am a translator of annual reports. Could you recommend books, courses or other resources that would help me improve the way I write them?

S.C.: Admittedly, I'm prejudiced, but I would encourage that you consider subscribing to my monthly Newsletter on Annual Reports. Also, spend time perusing my website, www.sidcato.com. Do that, and you'll know as much about the key corporate communique' as I do!

I desperately need your copyrighted criteria on what makes a good annual report—also, your Cato Positive Index (whatever that is), plus how you evaluate writing. Hurry!

S.C.: I don't do homework, for high school or college classes—or, for that matter, for grad students. (Shame on the instructors who assign such brainless tasks.) Once and for all: My criteria are detailed in the left-hand column on the major contents page (which of course is accessible by double-clicking on the right-pointing finger on my splash [main] page). Immediately below that is my clearly labeled Cato Positive Index (CPI)—the 36 indicators of a report's positive or negative nature. Below that: "About Writing," detailing how text in the shareholder letter is evaluated. In the future: DON'T ASK!

where can i find annual reports monthly for McDonalds

S.C.: That'd be a good trick if you could pull it off—a monthly annual report. For McDonald's or whoever. (An annual report, as the words indicate, is prepared and issued annually. Where might you get one from McDonald's? Have you tried its website?)

I don't have time to open the packages companies send me containing their annual report to shareholders, let alone read the reports. Why don't companies offer an option—making the information contained in the annual available online?

S.C.: Increasing numbers do. I suggest you visit the websites of companies you own stock in and see if they don't offer an electronic report option. Bet most of them do.

How do you decide whose annual reports you evaluate? I know of a couple that might be worth looking at ... but wonder if you run a formal competition with entries for your "Best of 200X" annual listing ... or make those choices from among companies that buy your critique service ... or ? Just curious.

S.C.: I analyze, in depth, every annual report I receive. One of my joys is coming upon a report I'm not acquainted with, and finding it qualifies as world class—that is, scoring at least 100 of a potential 135 points. Of the companies that retain me to critique their annuals in depth, most don't achieve world-class. All who retain Cato Communications, Inc., regardless, are fully identified as to our relationship. Even when they're awful. Before you shoot me an annual, though, be sure you've familiarized yourself with my criteria—to be sure it appears to you to be a potential winner. Even those who for sure know better sometimes send me a report they surely should have known I wouldn't score well. Then they're bent out of shape when I tell them how poorly they did.

A couple of clients have asked me the "average" cost per copy. Do you perchance have that data for 2002 books and 2003 books so far?

S.C.: 2002 books cost an average $3.73 per copy—but of course, that's dependent on number of copies printed: 436,386 is the average among those reporting to me. 2003 figures are far too preliminary for me to share.

How do you determine which annuals you analyze? Do you actually see enough to qualify as a "representative sampling"?

S.C.: The experts tell me I need see the square root of the universe—for a representative sampling, that is. If, as the SEC said a few years back, 12,114 companies are required to produce an annual, then I need see 110 reports. Already among 2003s, I've analyzed 119—all that have come in. And more than the experts say I need look at. Sometimes I'll discover, to my amazement, that a company to make the year-earlier "world's-best" list will have overlooked sending its current book—which omission I immediately alert them to via email.

I'm interested in annual reports that include coupons for consumers. Do you know of any?

S.C.: Sears is the first that comes to mind. The man responsible for its annual report told attendees at my annual conference the profits from coupons it enclosed "more than paid for cost of printing the report"—perhaps he said the coupon "more than paid for the entire report," but don't quote me. Another: Victoria's Secret, which offered in its report coupons good for perfume and candles, as well as nylons and face cream/makeup.

Is your newsletter posted online—for everyone to read? Or do I have to subscribe?

S.C.: Were I to post my entire newsletter online (there being no charge for online access, of course), there'd be no income whatsoever. Hence, no Newsletter on Annual Reports. Then I wouldn't be working on Issue No. 251—every month since September 1983.

Did you see the Dilbert cartoon concerning your hated (well, intensely disliked) EBITDA?

S.C.: By chance—and through the thoughtfulness of a former colleague, Larry Miller—I did. Three panels: "Hey, Dilbert, what are you doing for the EBITDA today?" asks one character in the first panel. Dilbert responds: "The what?" "EBITDA means the earnings before interest, taxes, depreciation and..um..ammonia" the character responds. Says Dilbert: "Are you sure about ammonia?" Responds his friend, in a play on accountants' words: "Why must you be so accretive?" Seriously, EBITDA—I would hope, in part because of my vocal opposition to it, rather than good, old-fashioned "profits"—has declined this year. Among 2002 annuals, 13.4% went the down-and-dirty EBITDA route. That stands at 7.8% among 2003s to date.

How would I obtain an annual filing report for a corporation currently registered in the state of Virginia?

S.C.: Have you tried writing the company that's Viriginia-based? That's what I'd do. That, or via the Wall Street Journal, which has an annual report-providing service.

I am presently writing an elementary school's annual report. What elements do you include in the executive summary? What are the number of pages in the executive summary and the overall report? What titles/items/topics should be in the report?

S.C.: I only monitor the world of annual reports of publicly held companies—bearing little if any resemblance to that of an elementary school, I'm afraid. I can tell you, though, you should include whatever staff views as important—not just your accomplishments, but your plans for the future, of course. Tell the truth, obviously. Make it personal sounding—but not a puff piece. As preparation, you might peruse the annual report to shareholders of a favorite company—McDonald's, say, or Kellogg's, or PepsiCo. Good luck.

How can we use the annual report to the fullest? How do we analyse the report if we were to compare two different firms? As far as I'm concerned, we need to do financial analysis such as Liquidity Ratio. I need to know what else can we analyse other than financial analysis?

Which is the first company in the world to publish its financial annual report?

S.C.: I believe you'll find the answer on my website, www.sidcato.com  But, being a good guy, I'll tell you it was Baltimore Gas & Electric, in 1823.

When requesting an annual report, who do you send the information to?

S.C.: I would write the corporate secretary (that title alone is sufficient; no name needed).

How do I get a 2003 Annual Report and 10-K for Reebok International mailed to me?

S.C.: Have you tried writing Reebok's corporate secretary (at an address you could get, perhaps, from the local library)? Or, maybe even better, visit Reebok's website and request a copy.

What is the difference between an annual report and the 10-K? Is this form a requirement for the annual report?

S.C.: The 10-K is a legalistic document required of a publicly held company by a U.S. government agency. The annual report—as you know if you've spent time on my website—is a popular document that contains informative, and readable, material. Hope this helps.

What was the annual report for L.L. Bean in 2003-2004?

S.C.: Your question, alas, doesn't make sense. Are you inquiring as to L.L. Bean's profits, losses, etc.? You'd have to contact L.L. Bean (must have an online presence, no?) and ask for a copy of its report. I have none. Don't actually know if L.L. Bean is publicly held. If it's not, of course it isn't required to produce an annual report.

I am trying to find out who the investment bankers are for Nike and Reebok, respectively. Also, when the last issuing of stocks or bonds occurred for each company. I am unable to determine this from the statement of cash flows and the balance sheets. Thanks.

S.C.: Haven't a clue. I only monitor a publicly held company's annual report to shareholders. I don't do cash flow, balance sheets and the like. Sorry.

What percentage of Nike's authorized common stock was issued in the most recent year?

S.C.: I have no idea whatsoever; my purview is the annual report, not corporate secretary matters. Having clarified that: Have you checked the Nike annual report, or contacted the corporate secretary's department, which could provide that in a moment? That's the best I could advise.

I knew of your site from previous work in a corporation. I now work in legal marketing and am noticing more and more law firms producing "Annual Reports" or "Pro Bono Annual Reports." I was wondering what your take on this is and what the legal industry can learn from the corporate world when it comes to producing annual reports.

S.C.: Out of my field of endeavor, I'm afraid—I only get involved with annual reports of publicly held companies. Sorry.

Can I get the annual report for Reebok for the years 2003-2004?

S.C.: I don't know; can you? You'd of course have to contact Reebok. I have none.

What is another name for a financial summary in an annual report?

S.C.: Financial highlights?

Could you provide me a detailed annual trade report for the Mcdonald's around the world (especially 16 countries except Europe).

S.C.: Sorry, no. You'd have to contact McDonald's, in Oak Brook, Illinois, I'm afraid.

What do people in the business think of the summary report?

How many U.S. families or what per cent of U.S. families are invested U.S. financial markets?

S.C.: Sorry. I haven't a clue. I only monitor the annual report to shareholders.

I would like to know when is McDonald's busiest time of the day in the U.S.? How many consumers do they serve in a day and at what times is it the busiest?

S.C.: I have absolutely no idea whatsoever. Have you tried asking McDonald's?

Our company is putting together an annual report and looking for information to support the viewpoint that a non-executive chairman not be included on the shareholders' letter with the CEO. Do you know of any information that supports this, or know of where I could find? (Wow: "of where I could find?" Wow!)

S.C.: I'm sure there are several such letters—involving a non-executive chairman—though I can't be more specific, I'm afraid. Have you tried the exchange your stock is listed and traded on—the NYSE, for instance? It might have some specific data, though I doubt it.

i need your help (i'm electrical engineer from asian country)..my boss asked me to write the personal anual report. he want me to write about the works that i done for this 8 months(i only joined this company for 8 months-engineering company,waht i'd learned for this almost 1 years, what the things that i'd not satisfied,(any complaint), what is my suggestion for company new strategy?....please help me....i dont know how to write..and what the things that i need to put....i'm hoping that u can give me the example for the report....thanks.

S.C.: Not long ago, the New York Times ran a letter somewhat similar to this one—from an American executive, or executive wannabe. Words generally, the English language in particular, aren't in your future, I'm afraid. Sorry.