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Tax reform has been kicking around for years in Congress (which would allow repatriation at a lower rate) and has fairly bipartisan support. It likely won't hap

by IBM 10y ago

Tax reform has been kicking around for years in Congress (which would allow repatriation at a lower rate) and has fairly bipartisan support. It likely won't happen in an election year, but after November I'd say the odds go up significantly. I doubt that has anything to do with this investment. They've had no problem tapping the debt markets to buyback stock and pay dividends, they don't need access to their cash.

ProAm 10y ago
Companies wont do it until its offered as full amnesty, especially companies as large as Apple, there is no reason for them to.
- adventured 10y ago
  Sure there is. Apple has already accumulated a dangerous amount of debt, given their business is declining and global smartphone sales growth is inching closer to zero. Outside of the financial sector, they're now one of the world's largest corporate carriers of debt at $69.3 billion. At the pace they're picking up debt, they'll hit $100+ billion in debt in two years, while their annual profit and stock price declines simultaneously (upsetting investors, increasing pressure for greater dividends). Given their position in the smartphone market is in no way guaranteed or a monopoly, it's an extremely dangerous position they're putting themselves into. Apple would accept a 5% penalty on their pile of cash any day of the week to repatriate it. Their financial situation in the very near future will become such that they start to get threatened with credit downgrades as the debt piles up and their growth keeps going backwards or otherwise stagnates. What they're doing can't continue for more than a few more years before it causes serious problems.
  - robbiemitchell 10y ago
    Why will profit decline? A reduction in sales _growth_ does not mean a reduction in sales/revenue/profit.
  - jonknee 10y ago
    > Apple has already accumulated a dangerous amount of debt, given their business is declining and global smartphone sales growth is inching closer to zero. Umm, what? That is nowhere close to a dangerous amount of debt. They're issuing debt because rates are so low that it is advantageous to do so. Free cash flow can easily take care of all their expenses (including dividend).
ktRolster 10y ago
Tax reform has been kicking around for years in Congress (which would allow repatriation at a lower rate) and has fairly bipartisan support. Note that while tax reform has broad support from both parties, the exact details of those reforms are fairly divisive.

by IBM 10y ago

ProAm 10y ago

Companies wont do it until its offered as full amnesty, especially companies as large as Apple, there is no reason for them to.

adventured 10y ago
Sure there is. Apple has already accumulated a dangerous amount of debt, given their business is declining and global smartphone sales growth is inching closer to zero. Outside of the financial sector, they're now one of the world's largest corporate carriers of debt at $69.3 billion. At the pace they're picking up debt, they'll hit $100+ billion in debt in two years, while their annual profit and stock price declines simultaneously (upsetting investors, increasing pressure for greater dividends). Given their position in the smartphone market is in no way guaranteed or a monopoly, it's an extremely dangerous position they're putting themselves into. Apple would accept a 5% penalty on their pile of cash any day of the week to repatriate it. Their financial situation in the very near future will become such that they start to get threatened with credit downgrades as the debt piles up and their growth keeps going backwards or otherwise stagnates. What they're doing can't continue for more than a few more years before it causes serious problems.
- robbiemitchell 10y ago
  Why will profit decline? A reduction in sales _growth_ does not mean a reduction in sales/revenue/profit.
- jonknee 10y ago
  > Apple has already accumulated a dangerous amount of debt, given their business is declining and global smartphone sales growth is inching closer to zero. Umm, what? That is nowhere close to a dangerous amount of debt. They're issuing debt because rates are so low that it is advantageous to do so. Free cash flow can easily take care of all their expenses (including dividend).

ktRolster 10y ago

Tax reform has been kicking around for years in Congress (which would allow repatriation at a lower rate) and has fairly bipartisan support. Note that while tax reform has broad support from both parties, the exact details of those reforms are fairly divisive.