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If its stock buy backs, then why is Apple creating jobs and a new campus with the capital?
by spoiledtechie 9y ago
If its stock buy backs, then why is Apple creating jobs and a new campus with the capital?
- Scipio_Afri 9y agoApple has $238 billion in cash in it's bank accounts. It was able to do this even if the tax code didn't change.
- danjayh 9y agoThey timing seems awfully strange for that explanation to work. Remember, corporations do what makes the best sense financially. Even though they could do this before, they didn't, because it didn't make sense.
- tankerdude 9y agoIt’s timing. They could have done it, but waiting for just a little bit, would net them billions. Like the article said, they prepped a certain amount and waited. Saving billions for doing the same thing but waiting a few months is a no brainer.
- akvadrako 9y agoDid it have $238B domestically? The topic is about Apple being able to bring their cash horde back to the US, where they can then use it.
- cromwellian 9y agoThey don't need to repatriate that. They have tens of billions domestically, and can use debt instruments against their overseas money. Who wouldn't lend Apple money at very low interest rates, given >$150 billion in collateral in the bank. Apple has already been doing buybacks and dividends by using bonds.
- akvadrako 9y agoThe bonds have to be paid back eventually, so it's just delaying the inevitable.
- nikdaheratik 9y agoExcept that they can just pay it with their overseas money in whatever form makes sense. On top of that, debt repayment comes out before the profit/loss that determines income so they could even use that to selectively lower their tax burden in future years.
- akvadrako 9y agoAre you sure you can take a loan in the US and then pay it back overseas? That would be effectively transferring money from abroad. The whole point is to avoid that.
- foobiekr 9y agomaybe they aren't really doing that and this is their spin on it for now?