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Most US companies have cash overseas and have never bought them back to the US because doing so will incur a third gone in taxes. Thus they are lending the cash
by HappyTypist 11y ago
Most US companies have cash overseas and have never bought them back to the US because doing so will incur a third gone in taxes. Thus they are lending the cash to the US entity to execute but backs, hoping that a tax holiday is declared in the future.
- jgalt212 11y ago> they are lending the cash to the US entity to execute but backs I'm pretty sure they don't do this as a loan from the untaxed or under-taxed overseas entity back to the taxed parent would create a tax event. AAPL has more cash than it knows what to do with, but it's a huge borrower in the corporate market so that it can fund its dividend payments.