“Apple this morning gave what amounts to a partial answer on how it will spend its large cash pile,” Eric Savitz reports for Forbes.
“With the new $2.65 a share quarterly dividend and a $10 billion three-year stock repurchase plan, the company will be giving back about $45 billion to shareholders over the next three years. But all of that will come from domestic cash,” Savitz reports. “The company has $64 billion of its cash outside the country. But due to the large tax bill the company would face from repatriating the cash, it will continue to pile up outside the country until the tax law changes or Apple figures out something else to do with it.”
Savitz reports, “Apple is one of a number of tech companies that have lobbied Congress for a change in the tax law to make it easier to bring some of the cash back into the country… One option for the cash is to make acquisitions outside the country… Other options would be to expand facilities outside the country”
Read more in the full article here.
MacDailyNews Take: Tax codes change and the more billions that Apple accumulates outside the U.S., the more pressure there will be in the U.S. for tax repatriation holiday.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
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