Apple CEO’s pay takes big hit vs. record 2011 package






NEW YORK (Reuters) – Apple Inc CEO Tim Cook’s 2012 compensation package of just over $ 4 million is a huge cut on paper for the top executive of the most valuable U.S. corporation, after a 2011 package fattened by more than $ 376 million in long-term stock awards.


Cook received the largest single pay package awarded to a company CEO in about a decade when he replaced Apple‘s legendary co-founder, Steve Jobs, shortly before Jobs’ death in October 2011.






The maker of the iPhone and iPad made the 2012 compensation disclosures in a regulatory filing on Thursday. Cook, who is in his early 50s, joined Apple in 1998 and became CEO in August 2011.


Virtually all of Cook’s $ 376 million bonus in 2011 was in stock awards that will vest in two chunks – one in 2016 and the other in 2021. This structure was intended to keep Jobs’ longtime lieutenant at the helm for many years.


In terms of base salary, Cook actually received a 50 percent increase to $ 1.4 million for 2012, and the same 200 percent bonus that other top Apple executives like CFO Peter Oppenheimer earned, Apple said in a regulatory filing on Thursday.


The 2012 compensation package for Cook also pales in comparison with his 2010 pay, which was 14 times higher, when he served as chief operating officer.


But Tim Ghriskey, chief investment officer of Solaris Group – which counts Apple stock as the biggest holding among the approximately $ 2 billion it manages – said Cook’s package was “normal CEO compensation.”


For example, Yahoo Inc’s CEO, Marissa Mayer, a former Google Inc high-flyer hired this year to try to turn around the struggling Internet icon, won a pay package worth more than $ 70 million. Despite her lack of a CEO track record, her basic pay is comparable to Cook’s, with about $ 1 million in annual salary and up to $ 2 million in an annual bonus.


Oracle Corp’s Larry Ellison, one of the most highly paid chief executives in the United States – and also the world’s sixth-richest man, according to Forbes – received total compensation for the year ended May 31, 2012, of $ 96.2 million – almost all of it in stock options.


That compared with $ 77.6 million for Ellison in the prior year.


Cook’s longtime boss, Jobs, famously received $ 1 a year in salary in the three years before he stepped down, though in 2000 he too received a stock option that analysts say was valued at almost $ 600 million at the time.


Cook will not receive any stock awards for 2012, Apple said in Thursday’s filing.


The 2012 package includes a salary of $ 1.4 million and a nonequity bonus of $ 2.8 million. Cook’s base salary actually increased in 2012 from the $ 900,000 he earned in 2011.


While Apple’s shares are roughly 35 percent higher than when Cook became CEO, they have fallen more than 27 percent since October, when they hit a $ 700.10 high. The stock has declined amid investor worries about intensifying competition in the mobile phone market and growth prospects in important markets including China.


Apple shares were down 1.3 percent at $ 506.35 on the Nasdaq on Thursday afternoon.


(Reporting by Sinead Carew and Liana Baker in New York, Jim Finkle and Tim McLaughlin in Boston and Edwin Chan in San Francisco,; editing by Kenneth Barry and Matthew Lewis)


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Soprano Bartoli: My voice has more colors, shadow






LONDON (Reuters) – Italian mezzo-soprano Cecilia Bartoli has released a year-end blockbuster that is part mystery story, part research project and shows off a voice which only seems to improve with age.


Bartoli’s latest deluxe-packaged album “Mission” (Decca) is devoted to the music of the late 17th-century Italian composer, diplomat and perhaps spy, Agostino Steffani.






Steffani may have been a bit overlooked as a result of his appearance at the end of the Renaissance and at the beginning of the Baroque periods – until Bartoli’s interest alighted on him.


“The variety is amazing in the music of Steffani, the slow arias have very beautiful melodic lines, they are unbelievable, it’s quite hypnotic music,” Bartoli said in a telephone interview from Paris.


Since she burst upon the world in the 1990s, specializing mostly in Mozart and Rossini, Bartoli has gone from strength to strength, not only in digging up unusual repertoires, including another deluxe compilation in 2009 devoted to music sung by castrati, but also vocally.


Here’s what else Bartoli had to say about Steffani and his possible career as a spy, why she goes for the anti-diva look on her recent album covers, and what she calls a Fellini-esque experience at La Scala with conductor Daniel Barenboim:


Q: Is it true, then, that the voice improves with time?


A: “I think this is a very good time because of the maturity of the technique. When you are young, of course, you have to have a beautiful voice. This is a gift you receive, but you don’t have enough technique or experience. So this is a very good time because I can really paint with my voice with so many colors, like a painter. I love painting with the voice and I’m of an age when I do this definitely better than 20 years ago.”


Q: So this bit about Steffani being a spy, surely that was dreamt up by the Decca marketing department?


A: “He had an incredible life as a priest, a missionary and a diplomatic mission to arranging weddings between the royal princes of that period. And also he was a kind of spy, in fact he was a Catholic priest in the north of Germany, in the Protestant area, and he spent lots of years in that area – it was very unusual, very strange. Maybe he also had the mission to convert (people) to Catholicism, who knows? We have lots of speculation about him, all the mysterious things about this man. There’s still mystery.”


Q: There’s no mystery though that the cover for this album, showing you bald-headed and wielding a crucifix, is “non-diva” – like the cover on the “Sacrificium” album of castrati music, with your head superimposed on the torso of a male statue.


A: “The idea was to have a cover related to the project and it was a bit against the cliche of a diva who has to look beautiful all the time. In a project like ‘Sacrificium’, when at the beginning of the 18th century 3,000-4,000 boys were castrated every year in Italy…how can I make a CD project about this and make a cover with a beautiful, glamorous Vanity Fair picture? This would be more embarrassing…People realize there is a real story here to tell, it’s not a compilation of arias which you do for Christmas. And ‘Sacrificium’ was a huge success.”


Q: Your concert recital earlier this month singing Handel, Rossini and Mozart with Daniel Barenboim conducting at La Scala in Milan, with a chorus of boos and whistles in the second half, was perhaps less of a success?


A: “This story is repeating what happened to Carlos Kleiber, one of the greatest conductors of our lives, also to (Maria) Callas, (Luciano) Pavarotti. The concert was magnificent – Handel, Mozart, Rossini – and then I believe at the very end there was a very Fellinian situation. You think these things don’t happen anymore, that they only happen in the movies of (Federico) Fellini but actually, no, this is happening. And it seemed like a parody but the next morning I opened the newspaper and (Silvio) Berlusconi is back (in Italian politics). And so I said, ‘Yes, of course.’


I think living in Italy is difficult but living without Italy is impossible.”


(Editing by Michael Roddy)


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Books: From Bang to Whimper: A Heart Drug’s Story





On June 23, 2005, American medicine managed to take a small step forward and a giant step backward at precisely the same time, with government approval of the first medication to be earmarked for a specific racial group. It was BiDil, a drug designed to treat heart failure in blacks.




Enthusiasts hailed BiDil’s approval by the Food and Drug Administration as a landmark event in the nascent field of pharmacogenomics, which aims to create drugs tailored to fit an individual’s genetic makeup as precisely as a bespoke suit drapes its owner’s shoulders. Critics just winced and clocked one more misstep in medicine’s long history of race-related disasters.


You would think that the elucidation of the human genome would have cleared up most of the hoary untruths surrounding race and health. But as Jonathan Kahn makes clear in his worthy if convoluted review of the events surrounding the birth of BiDil, the genome has in many respects only made things worse.


It has been clear for decades that race has minimal relevance to the body’s inner workings. Research has repeatedly shown that the biologic variations among individuals of the same race are reliably great enough for race to retain little utility as a biologic predictor. You might as well sort people by height. Or, in the words of an editorial writer for Nature Biotechnology in 2005, “Pooling people in race silos is akin to zoologists grouping raccoons, tigers and okapis on the basis that they are all stripy.”


But old misconceptions die hard, particularly for entrepreneurs eagerly awaiting cash bonanzas from the genomic revolution.


Race may be irrelevant; it may be, as Dr. Francis Collins, the director of the National Institutes of Health, put it, “a weak and imperfect proxy” for genetic differences. But it is also a familiar concept — and asking people what race they are is substantially cheaper than genotyping them.


So in a peculiar paradox, race has come to serve in some circles as a crude surrogate for genetic analysis until actual genomic medicine comes along — a temporary bridge from now to later, known to be flawed but still a quasi-legitimate stand-in for the real thing.


Against this background unfolds the story of BiDil, a drama of greed and good intentions.


Several observations prompted the drug’s development. Among them was the common assertion from the last century that blacks with heart failure were more likely to die than whites. (Mr. Kahn does an impressive job of researching and debunking this statistic.) Then there was the belief that blacks often reacted badly to some of the newer drugs used for treating heart failure, and the results of a study dating from the 1980s suggesting that many black patients did well with two old standby drugs.


Those two drugs were (and are) on sale as generics, costing pennies a pill. But just suppose they were combined into a single pill that could be then specifically marketed to patients who just happened to be thought in particular need of effective medication? Now there was a pharmacologic and marketing plan that would extend a lucrative new patent for decades.


And so it came to pass that a collection of eager investors and some of the nation’s foremost cardiologists smiled on the results of an industry-sponsored trial performed on self-identified black subjects with heart failure: The two cheap drugs combined into the not-so-cheap BiDil reduced mortality by 40 percent compared with placebo. This figure was impressive enough to end the trial early and speed BiDil to market.


How did whites do on BiDil? Nobody bothered to check.


Mr. Kahn deserves credit for teasing out all the daunting complexities behind these events, including the details of genetic analysis, the perils of racial determinations and the minutiae of patent law. Unfortunately, though, he suffocates his powerful subject in a dry, repetitive, ponderous read.


A law professor with a doctorate in history and longstanding interest in race issues, Mr. Kahn trudges a partisan path through the drama in which he himself was a player. (He testified before an F.D.A. advisory committee that BiDil should be approved without racial qualifications.)


He heads bravely into many statistical thickets, but omits relevant clinical data; he repeatedly refers to the trial that led to BiDil’s approval, for instance, but I could find its numerical findings nowhere in the book and had to look them up. In a story that fairly drips with potential human interest, he offers the reader not one sip.


The issues raised on every page are so important and so thought-provoking that it would be irresponsible to warn interested readers away. Still, it would be almost as irresponsible to misrepresent the difficulty of the journey.


As it happens, BiDil itself has had a remarkably inglorious career. Despite its much-trumpeted release, patients did not request the medication, and practicing doctors did not prescribe it.


NitroMed, the company that developed it, sponsored no further studies and failed in 2009.


The drug still lingers on the market; Mr. Kahn writes that BiDil may be resurrected in sustained-release form — that other time-honored technique for wringing a few more years from a drug’s patent.


For a parable of early 21st-century medicine, as it treads water between past and future and never hesitates to reach for a buck, it doesn’t get much better than BiDil.


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Toyota to pay big to settle suits









Toyota Motor Corp., moving to put years of legal problems behind it, has agreed to pay more than $1 billion to settle dozens of lawsuits relating to sudden acceleration.


The proposed deal, filed Wednesday in federal court, would be among the largest ever paid out by an automaker. It applies to numerous suits claiming economic damages caused by safety defects in the automaker's vehicles, but does not cover dozens of personal injury and wrongful-death suits that are still pending around the nation.


The suits were filed over the last three years by Toyota and Lexus owners who claimed that the value of their vehicles had been hurt by the potential for defects, including floor mats that could cause the vehicles to surge out of control.





ROAD TO RECALL: Read The Times' award winning coverage


In addition, Toyota said it is close to settling suits filed by the Orange County district attorney and a coalition of state attorneys general who had accused the automaker of deceptive business practices. The costs of those agreements would be included in a $1.1-billion charge the Japanese automaker said it will take against earnings to cover the actions.


"We concluded that turning the page on this legacy legal issue through the positive steps we are taking is in the best interests of the company, our employees, our dealers and, most of all, our customers," Christopher Reynolds, Toyota's chief counsel in the U.S., said in a statement.


Toyota's lengthy history of sudden acceleration was the subject of a series of Los Angeles Times articles in 2009, after a horrific crash outside San Diego that took the life of an off-duty California Highway Patrol officer and his family.


Under terms of the agreement, which has not yet been approved in court, Toyota would install brake override systems in numerous models and provide cash payments from a $250-million fund to owners whose vehicles cannot be modified to incorporate that safety measure.


In addition, the automaker plans to offer extended repair coverage on throttle systems in 16 million vehicles and offer cash payments from a separate $250-million fund to Toyota and Lexus owners who sold their vehicles or turned them in at the end of a lease in 2009 or 2010. The total value of the settlement could reach $1.4 billion, according to Steve Berman, the lead plaintiff attorney in the case.


The lawsuits, filed over the last several years, had been seeking class certification.


News of the agreement comes scarcely a week after Toyota agreed to pay a record $17.35-million fine to the National Highway Traffic Safety Administration for failing to report a potential floor mat defect in a Lexus SUV. Those come on top of almost $50 million in fines paid by Toyota for other violations related to sudden acceleration since 2010.


The massive settlement does not, however, put Toyota's legal woes to rest. The automaker still faces numerous injury and wrongful death claims around the country, including a group of cases that have been consolidated in federal court in Santa Ana, and other cases awaiting trial in Los Angeles County.


The first of the federal cases, involving a Utah man who was killed in a Camry that slammed into a wall in 2010, is slated for trial in mid-February.


The California cases are set to begin in April, among them a suit involving a 66-year-old Upland woman who was killed after her vehicle allegedly reached 100 miles per hour and slammed into a tree.


Edgar Heiskell III, a West Virginia attorney who has a dozen pending suits against Toyota, said he is preparing to go to trial this summer in a case that involved a Flint, Mich., woman who was killed when her 2005 Camry suddenly accelerated near her home.


"We are proceeding with absolute confidence that we can get our cases heard on the merits and that we expect to prove defects in Toyota's electronic control system," he said.


Toyota spokesman Mike Michels said the settlement would have no bearing on the personal injury cases.


"All carmakers face these kinds of suits," he said. "We'll defend those as we normally would."


The giant automaker's sudden acceleration problems first gained widespread attention after the August 2009 crash of a Lexus ES outside San Diego.


That accident set off a string of recalls, an unprecedented decision to temporarily stop sales of all Toyota vehicles and a string of investigations, including a highly unusual apology by Toyota President Akio Toyoda before a congressional committee. Eventually Toyota recalled more than 10 million vehicles worldwide and has since spent huge sums — estimated at more than $2 billion, not including Wednesday's proposed settlement — to repair both its automobiles and public image.





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One of Chicago's most feared mobsters dies in prison

Frank Calabrese Jr., ex-mobster and author of the book Family Secrets, speaks to the Chicago Tribune's John Kass on March 14, 2011, at Bella Luna cafe in Chicago. (Nancy Stone, Chicago Tribune, March 14, 2011)









Convicted mob hitman Frank Calabrese Sr. has died in a federal prison in North Carolina.

Calabrese died on Christmas at the Butner Federal Correctional Complex, where he had been serving a life sentence, according to a spokesman for the Bureau of Prisons. He was 75.

Calabrese, one of Chicago’s most feared mobsters, was convicted in 2007 during the Operation Family Secrets trial.


A federal jury held Calabrese and two other aging mobsters -- Joseph "Joey the Clown" Lombardo and James Marcello -- responsible for 10 murders after a trial that exposed the seedy inner workings of organized crime in Chicago.

Calabrese,  a portly, bearded loan shark who according to witnesses doubled as a hit man, was found responsible for seven mob murders. Witnesses, including his brother Nicholas Calabrese, said he strangled victims with a rope, then cut their throats to make sure they were dead.







Marcello, described by prosecutors as a top leader of the Chicago Outfit, was held responsible for the June 1986 murder of Tony "The Ant" Spilotro, the Chicago mob's longtime man in Las Vegas and the inspiration for the Joe Pesci character in the movie "Casino."

The Family Secrets trial was the biggest organized crime case in Chicago in years. The defendants were convicted of operating the Chicago Outfit as a racketeering enterprise.

They allegedly squeezed "street tax," similar to protection money, out of businesses, ran sports bookmaking and video poker operations as well as engaged in loan sharking. And they allegedly killed many of those who they feared might spill mob secrets to the government -- or already were doing so.

The cases went unsolved for decades.


Calabrese’s attorney in the Family Secrets trial, Joseph “Shark” Lopez, said Calabrese had been in ill health.

“Last I spoke with him a little over a year ago, he was a sick man,” Lopez said. “He was on about 17 different medications. But always a strong-willed individual.”

After spending hundreds of hours together while Calabrese was on trial, Lopez said the two developed a relationship.

“Sure he was difficult at times because he was used to getting his way, but I only saw one side of him and that was the good side,” Lopez said. “He was a pleasure to deal with and a pleasure to talk to. We’d talk about cooking, restaurants, history, you name it.”

“He was quick-witted, smart and street-savvy,” Lopez said. “Always very upbeat; nothing could keep Frank down.”

Lopez said Calabrese was very religious, making his Christmas day death feel “odd.”

“He always talked about how much he loved spending Christmas with his family. It was his favorite holiday of the year,” he said.

Lopez said he thinks there will be mixed feelings in Chicago about Calabrese’s death.

“I’m sure there are some people really sad and some people really happy,” Lopez said. “I’m sad for his family.”


Calabrese's body was taken to the medical examiner's office, where it will be examined this afternoon, according to Kevin Gerity, autopsy manager for the office. Gerity said an autopsy or an external examination will be conducted.





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Netflix blames Amazon for Christmas Eve outage






NEW YORK (Reuters) – An outage at one of Amazon‘s web service centers hit users of Netflix Inc‘s streaming video service on Christmas Eve and was not fully resolved until Christmas Day, a spokesman for the movie rental company said on Tuesday.


The outage impacted Netflix subscribers across Canada, Latin America and the United States, and affected various devices that enable users to stream movies and television shows from home, Netflix spokesman Joris Evers said. Such devices range from gaming consoles like the Nintendo Wii and PlayStation 3 to Blu-ray DVD players.






Netflix, which is based in Los Gatos, California, has 30 million streaming subscribers worldwide, of which more than 27 million are in the Americas region that was exposed to the outage and could have potentially been affected, Evers said.


Evers said the issue was the result of an outage at an Amazon Web Services‘ cloud computing center in Virginia and started at about 12:30 p.m. PST (2030 GMT) on Monday and was fully restored before 8:00 a.m. PST Tuesday morning, although streaming was available for most users by 11:00 p.m. PST on Monday.


The event marks the latest in a series of outages from Amazon Web Services, with one occurring in April of last year that knocked out such sites as Reddit and Foursquare.


“We are investigating exactly what happened and how it could have been prevented,” Evers of Netflix said.


“We are happy that people opening gifts of Netflix or Netflix capable devices can watch TV shows and movies and apologize for any inconvenience caused last night,” he added.


Officials at Amazon Web Services were not available for comment. Evers, the Netflix spokesman, declined to comment on the company’s contracts with Amazon.


(Reporting by Sam Forgione; Editing by Leslie Gevirtz and Matt Driskill)


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Ticket rush: Film fans hand Hollywood record cash






LOS ANGELES (AP) — The big deal for Hollywood is not the record $ 10.8 billion that studios took in domestically in 2012. It’s the fact that the number of tickets sold went up for the first time in three years.


Thanks to inflation, revenue generally rises in Hollywood as admission prices climb each year. The real story is told in tickets, whose sales have been on a general decline for a decade, bottoming out in 2011 at 1.29 billion, their lowest level since 1995.






The industry rebounded this year, with ticket sales projected to rise 5.6 percent to 1.36 billion by Dec. 31, according to box-office tracker Hollywood.com. That’s still well below the modern peak of 1.6 billion tickets sold in 2002, but in an age of cozy home theater setups and endless entertainment gadgets, studio executives consider it a triumph that they were able to put more butts in cinema seats this year than last.


“It is a victory, ultimately,” said Don Harris, head of distribution at Paramount Pictures. “If we deliver the product as an industry that people want, they will want to get out there. Even though you can sit at home and watch something on your large screen in high-def, people want to get out.”


Domestic revenue should finish up nearly 6 percent from 2011′s $ 10.2 billion and top Hollywood‘s previous high of $ 10.6 billion set in 2009.


The year was led by a pair of superhero sagas, Disney’s “The Avengers” with $ 623 million domestically and $ 1.5 billion worldwide and the Warner Bros. Batman finale “The Dark Knight Rises” with $ 448 million domestically and $ 1.1 billion worldwide. Sony’s James Bond adventure “Skyfall” is closing in on the $ 1 billion mark globally, and the list of action and family-film blockbusters includes “The Hunger Games,” ”The Twilight Saga: Breaking Dawn — Part Two,” ”Ice Age: Continental Drift,” ”Madagascar 3: Europe’s Most Wanted,” ”The Amazing Spider-Man” and “Brave.”


Before television, movies were the biggest thing going, with ticket sales estimated as high as 4 billion a year domestically in the 1930s and ’40s.


Movie-going eroded steadily through the 1970s as people stayed home with their small screens. The rise of videotape in the 1980s further cut into business, followed by DVDs in the ’90s and big, cheap flat-screen TVs in recent years. Today’s video games, mobile phones and other portable devices also offer easy options to tramping out to a movie theater.


It’s all been a continual drain on cinema business, and cynics repeatedly predict the eventual demise of movie theaters. Yet Hollywood fights back with new technology of its own, from digital 3-D to booming surround-sound to the clarity of images projected at high-frame rates, which is being tested now with “The Lord of the Rings” prelude “The Hobbit: An Unexpected Journey,” shown in select theaters at 48 frames a second, double the standard speed.


For all of the annoyances of theaters — parking, pricy concessions, sitting next to strangers texting on their iPhones — cinemas still offer the biggest and best way to see a movie.


“Every home has a kitchen, but you can’t get into a good restaurant on Saturday night,” said Dan Fellman, head of distribution for Warner Bros. “People want to escape. That’s the nature of society. The adult population just is not going to sit home seven days a week, even though they have technology in their home that’s certainly an improvement over what it was 10 years ago. People want to get out of the house, and no matter what they throw in the face of theatrical exhibition, it continues to perform at a strong level.”


Even real-life violence at the movie theater didn’t turn audiences away. Some moviegoers thought twice about heading to the cinema after a gunman killed 12 people and injured 58 at a screening of “The Dark Knight Rises” in Colorado last summer, but if there was any lull in attendance, it was slight and temporary. Ticket sales went on a tear for most of the fall.


While domestic revenues inch upward most years largely because of inflation, the real growth areas have been overseas, where more and more fans are eager for the next Hollywood blockbuster.


Rentrak, which compiles international box office data, expects 2012′s foreign gross to be about $ 23 billion, 3 percent higher than in 2011. No data was yet available on the number of tickets sold overseas this past year.


International business generally used to account for less than half of a studio film’s overall receipts. Films now often do two or even three times as much business overseas as they do domestically. Some movies that were duds with U.S. audiences, such as “Battleship” and “John Carter,” can wind up being $ 200 million hits with overseas crowds.


Whether finishing a good year or a bad one, Hollywood executives always look ahead to better days, insisting that the next crop of blockbusters will be bigger than ever. The same goes this time as studio bosses hype their 2013 lineup, which includes the latest “Iron Man,” ”Star Trek,” ”Hunger Games” and “Thor” installments, the Superman tale “Man of Steel” and the second chapter in “The Hobbit” trilogy.


Twelve months from now, they hope to be talking about another revenue record topping this year’s $ 10.8 billion.


“I’ve been saying we’re going to hit that $ 11 billion level for about three years now,” said Paul Dergarabedian, a box-office analyst for Hollywood.com. “Next year I think is the year we actually do it.”


___


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Study Finds Modest Declines in Obesity Rates Among Young Children From Poor Families


A new national study has found modest declines in obesity among 2- to 4-year-olds from poor families, a dip that researchers say may indicate that the obesity epidemic has passed its peak among this group.


The study, by researchers from the Centers for Disease Control and Prevention, drew on the height and weight measurements of 27 million children who were part of the federal Women, Infants and Children program, which provides food subsidies to low-income mothers and their children up to the age of 5.


The study was based on data from 30 states and the District of Columbia and covered the years from 1998 to 2010. The share of children who were obese declined to 14.9 percent in 2010, down from 15.2 percent in 2003, after rising between 1998 and 2003. Extreme obesity also declined, dropping to 2.07 percent in 2010 from 2.22 percent in 2003. The study was published Tuesday in The Journal of the American Medical Association.


The report defined a 3-year-old boy of average height, almost 3 feet 2 inches tall, as being obese when he weighed 37 pounds or more. The same boy was categorized as being extremely obese when he weighed 44 pounds or more.


“The declines we’re presenting here are pretty modest, but it is a change in direction,” said Heidi M. Blanck, one of the study’s authors and the acting director of the Division of Nutrition, Physical Activity and Obesity at the disease centers. “We were going up before. And this data shows we’re going down. For us, that’s pretty exciting.”


The findings were another sign that one of the nation’s seemingly intractable health problems may be reversing course, at least among children. Single interventions like school exercise programs have not worked, and public health experts now say that only a broad set of policy measures has a chance of success.


Over the past year, several major cities, including Los Angeles, New York and Philadelphia, have reported obesity declines among some parts of their student populations.


The new study was one of the first to document a national decline in obesity among young children from low-income families. Researchers say that is particularly meaningful in a population that is disproportionately at risk. Twenty percent of poor children are obese, compared with about 12 percent of children from more affluent families, according to the centers.


It is unclear what drove the decline, but Dr. Blanck offered hypotheses. Breast-feeding, which often leads to healthier weight gain for young children, has increased since 2000. The percentage of 6-month-olds still being breast-fed increased to 47.7 percent among children born in 2009, up from 34.2 percent among children born in 2000.


Breast-feeding of infants from low-income families has risen over the years. In 1980, only 28 percent of infants from those families had ever been breast-fed, compared with 66 percent in 2011.


Dr. Blanck also pointed to changes in the environment, like those documented in a report about food marketing practices released by the Federal Trade Commission on Friday.


The agency found that the amount of money spent on food marketing to children declined by nearly 20 percent from 2006 to 2009, with the biggest drop in television advertising. The total spent on food advertising to youths in 2009 was $1.79 billion, the report said.


The report, based on data from 48 major food and beverage marketers, also found that cereals marketed to children ages 2 to 11 had about a gram less sugar per serving in 2009 than in 2006 and slightly more whole grain.


Marketing to children of the most sugary cereals — those with 13 grams or more sugar per serving — was virtually eliminated between 2006 and 2009, according to the report.


But drinks marketed to children still averaged more than 20 grams of added sugar per serving, the report found. Most of the improvements in beverages in the time period were in those sold in schools, the report said.


Dr. Blanck said she was hopeful that several national programs begun in the past few years would help extend the early declines. One initiative, Let’s Move! Child Care, initiated by Michelle Obama’s office, helps child care centers serve healthier food and include physical activity throughout day.


Changes in the foods that are subsidized in the Women, Infants and Children program, like less financing for fruit juice and more for fruits and vegetables, may also help, she said.


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Corporate tax rate overhaul may be part of a 'fiscal cliff' deal









WASHINGTON — Amid the wrangling over the so-called fiscal cliff, President Obama and congressional Republicans can agree on something: They want to lower the corporate tax rate.


The U.S. has the highest overall rate of any of the world's developed economies. It took the top spot in March after Japan reduced its rate, mimicking other countries that have lowered taxes to lure new businesses and keep existing companies from leaving.


Negotiations to avert automatic income tax increases and federal spending cuts scheduled to kick in Jan. 1 could provide the impetus for U.S. policymakers to tackle an overhaul of the corporate tax code next year.





The White House wants to put a corporate tax overhaul, along with changes to the individual income tax system, on a fast track as part of any deal to avoid the "fiscal cliff."


The centerpiece of an overhaul would be slashing the 35% corporate tax rate, a goal long sought by corporate executives and lobbyists.


Quiz: How much do you know about the 'fiscal cliff'?


"In the name of global competitiveness, I think that has largely been agreed to," Jim McNerney, chief executive of Boeing Co., said about how both parties view the need for major corporate tax changes.


In February, Obama proposed lowering the federal rate to 25% for manufacturing companies and to 28% for other firms. Rep. Dave Camp (R-Mich.), chairman of the House Ways and Means Committee, has been pushing a plan to lower the rate to 25% for all corporations.


In both cases, the rate cuts would be accompanied by the elimination of some of the numerous tax breaks that allow many companies to pay a much lower effective tax rate — and sometimes to avoid paying any corporate taxes at all.


"The administration's position on this is very much in sync with what Republicans say they want, which is a lower rate and a broader base," said Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities and the former chief economist for Vice President Joe Biden.


But there still are some obstacles to a deal.


Some Democrats want to use an overhaul to increase the amount of tax revenue coming from corporations, while Republicans want to keep the amount the same. The White House and congressional Republicans also differ on how the U.S. should treat money earned abroad.


And the business community itself is divided. Many small companies file taxes as individuals. They're opposed to any "fiscal cliff" deal that would raise their rates while giving corporations a rate reduction.


Analysts said the obstacles could be overcome because there is consensus around the broader point that the U.S. needs to bring its corporate tax rate in line with other developed nations.


"Regardless of your political persuasion, it is unquestionably the case that the nominal U.S. corporate tax rate is much higher than that of peer countries," said Edward Kleinbard, a USC law professor and former chief of staff of Congress' Joint Committee on Taxation.


The case for corporate tax reform got a boost when the overall U.S. rate of 39.1%, which includes federal, state and local corporate taxes, became the highest this year among the 34 nations in the Organization for Economic Cooperation and Development. Two decades ago, the U.S. was 13th.


"At one time in the '80s, we had a competitive corporate tax rate," said Dorothy Coleman, vice president of tax and domestic economic policy for the National Assn. of Manufacturers. "We've fallen behind by standing still."


Quiz: The year in business


But the rate in the tax code isn't what many companies pay because of a host of deductions and tax credits. In 2011, the effective corporate tax rate in the U.S. was 29.2%, roughly in line with the 31.9% average of the six other largest developed economies, the Obama administration said.


The White House said that parity does not mean the statutory rate shouldn't be reduced. It simply means that many tax breaks should be eliminated, allowing the rate to be lowered without adding to the deficit.





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