“Loaded with growing cash reserves, the computer maker has created an asset-management firm in a state with fewer taxes and looser ties with the IRS Apple Computer is breaking records with sales of its popular iPod music player — and has the coffers to prove it. Now the Cupertino, Calif.-based computer maker has come up with what could be a smart way to manage part of that swelling cash pile. Apple has set up a company based in Nevada with the purpose of managing its cash and short-term investments in a tax-advantageous manner,” Arik Hesseldahl reports for BusinessWeek. “According to public documents, Apple has incorporated Braeburn Capital, an asset management company based in Reno, (Nev.) Braeburn — named for a variety of apple that’s uniquely sweet and tart — will be a vehicle for managing Apple’s investment portfolio. By incorporating in Nevada, Apple will be shielded from certain taxes imposed by the state of California, according to a person briefed on the matter.”
“Apple’s cash reserve has nearly doubled over the last two years. At the end of 2005, Apple had $8.7 billion in cash and short term investments, about 15% of its market capitalization. That’s up 91%, from $4.6 billion, at the end of 2003. And it compares with much bigger rivals like Dell, which reported $9 billion in cash and short-term investments for the quarter ended February,” Hesseldahl reports. “An Apple spokesman said Braeburn will function as a regional treasury office, on par with existing offices in Cupertino, Singapore, and Cork, Ireland. He declined to comment on the tax implications or elaborate on Braeburn’s investment plans.”
Full article here.
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1st Post – Whoopie! Does anyone care?
If you own stock, yes you care.
I guess you can’t just let those billions of dollars sit there and do nothing.
that’s a chunk of change
Funny thing is that Apple has more cash than Dell – taking into account Dell’s debt.
And I have more cash than Delta, United, and Northwestern Airlines combined, taking into account their debt.
A chunk you don’t want to just hand over to CA… the taxes there are out of control.
Yes, Captain. Oh man, could the news be better for shareholders?! Apple is handling everything the right way nowadays. If they can accumulate enough through smart management someday the company’s cash reserve will grow larger than Microsoft’s (dream big) and then that company would be truly irrelevant. So glad I bought this stock, and it was no whim. Even if it tanks tomorrow I’ll always expect it to grow again because the company is smart. Okay, off my soapbox, now. Sorry.
By the way, the debt point is a good one. Isn’t Apple debt free?
I hate California. not because of the taxes, but because it turns good people bad. I guess the surfing and warm weather is nice on a vacation… but I would rather live anywhere than California. It’s just a bad place.
What is their retirement system called? Granny Smith????
“By the way, the debt point is a good one.”
given its national debt, i have more money than the United States of America.
my point: debt point is a moot one.
p.s.
“Braeburn” is the best name they could pick.
An expensive type of apple that is sweeter and often used in deserts, as in, the apples of easy living.
Guessing,
nice one.
Excess money always finds it’s way to Nevada
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Looks like Enron’s croockerie…
A plane was taking off from Mascot Airport. After it reached a comfortable cruising altitude, the captain announced:, “Ladies and gentlemen, this is your captain speaking. Welcome to Flight 43, non-stop from Sydney to Auckland. The weather ahead is good and, therefore, we should have smooth and uneventful flight. Now sit back and relax – OH, MY GOD!” Silence followed and after a few minutes, the captain came back on the intercom and said, “Ladies and Gentlemen, I am so sorry if I scared you earlier; but, while I was talking, the flight attendant brought me a cup of coffee and spilled the hot coffee in my lap. You should see the front of my pants!” A passenger in economy said, “That’s nothing. He should see the back of mine!”
An expensive type of apple that is sweeter and often used in deserts
—
LOL!
mmmm sand à la mode
Super Tim,
Places can’t turn people bad. Your just jealous of our (mostly) great weather and nicer lifestyles, and as a result of not being willing to take a risk and try to elevate yourself out of the doldrums, you became a bigoted jerk.
Super Tim
Buffy isn’t real. It’s only make believe. There aren’t really vampires and demons, and there isn’t really a Sunnydale.
“Looks like Enron’s croockerie…”
Not really. Apple’s just starting a new company in Nevada to avoid tax laws. Enron cooked the books and destroyed many people’s lives (by obliterating their retirement savings).
Thats a fairly short hop from Sydney to Auckland.
I wonder if Apple Corps will be back after Apple Computer for using another apple as a logo or mark. At least they didn’t pick Granny Smith which is Apple Corp logo.
**NEWS FLASH**
On the way to the bank, the CFO stopped in Vegas to a roulette table and bet the entire $8.9 Billion on 13 Black…
Just waiting for the ball to drop to see if Steve is now richer than Bill Gates…
So, Super Tim. What fabulous state do you live in? Does it turn bad people good?
I live in California. I’m good people. And I know some really good people. I know some shitty people here, too. Not much different from when I lived in Dallas, or Manhattan. Or visits to other cities and states.
Making blanket value statements about California (or any other state or country) shows you have little experience in travel, culture, or socialization.
You have to remember that the rest of the country (at least most of it) hates California.
This is mainly because the rest of the country is a bunch of ignorant red-neck racist, bigoted, queer-fearing jerks whose only idea of what California is like is from watching Hollywood pricks on the Oscars.