Apple‘s $74 billion tops list of U.S. tech companies’ overseas cash

“Moody’s Investors Service’s Richard Lane today writes in a note to clients that the ‘surging’ pile of cash of U.S. tech companies that is parked overseas reached $227.5 billion out of a total $457 billion at the end of the March quarter, just counting the holdings of the companies that have $2 billion or more in cash and liquid investments combined,” Tiernan Ray reports for Barron’s.

“Among the top hoarders of cash, writes Lane, Apple‘s $74 billion in overseas cash tops the list, up from $64 billion in December and just $35 billion at the end of 2010,” Ray reports. “Lane refers to SEC filings and Moody’s estimates.”

Ray reports, “Apple’s influence on overseas cash growth is substantial: Excluding Apple, overseas cash rose 15% in the March quarter, year over year. Including Apple, it rose by 31%.”

Read more in the full article here.

Related articles:
Apple’s dividend move puts spotlight on foreign cash holdings, repatriation tax reform – March 20, 2012
Apple: Good start; and what about the overseas cash? – March 19, 2012
Apple’s foreign cash hoard piles up: $54 billion and rapidly growing – January 11, 2012
Senator John McCain eyes Apple’s $54 billion overseas cash pile – November 3, 2011
Google joins Apple in push for U.S. repatriation tax holiday – October 3, 2011
Apple lobbies Obama for tax holiday, wants to bring overseas bounty home – August 24, 2011
U.S Senate Democrat Schumer allies with Apple, other multinationals on repatriation tax talks – June 21, 2011
U.S. companies push for tax break on foreign cash – June 20, 2011
Apple, Oracle, Duke Energy, others organize lobbying blitz for tax holiday – February 17, 2011

44 Comments

    1. The government didn’t give me an option when I had to pony up a chunk of cash. It was pay it or, well, you know…

      2 Questions:
      1- Why should corporations be treated differently?
      2- Why should any taxpayer act like a tool for corporate America?

      1. It seems to me that you are complaining about the wrong thing. Let’s change government so that you DO have a choice instead of them MAKING you pay up! Novel concept.

        Also, if the tax code is not changed Apple will NEVER bring this money to the US. If you want these companies to invest in the US, then you have to stop throwing up reason for them not to.

        1. @shmluss

          I am usually anti-corporation, but I agree with you. Let them bring the money home and make it more difficult to send it back out. In fact make a rule, any money brought here, MUST be spent here and cannot flow back out.

          Being idealistic about it doesn’t help. Obviously something went wrong with our “ideals” that caused the problem in the first place.

          Two wrongs don’t make a right. We should cut the tax and allow the money to come home, and then not allow that “specially treated money” to flow back out

      2. American companies pay about 35% taxes on profits. The rest of the industrialized world pays, on average, 25% taxes. We live in a world economy and America is handicapping American corporations.

        Moving their assembly work offshore gets companies more than cheap labor. It also lowers the taxes they pay by 10%. In order to bring that money back to America and use it there, the corporations would have to pay that 10% difference.

        For Apple to do that they would have to pay about $7 billion. All that money to prop up a shaky government when the USA is overtaxing American industry by 10% on the world market.

        Just think what Apple could do with that $74 billion if they had it in America, not scattered all over the world.

    2. Right. Because rather than making rules that are consistent for everyone, JP would rather see a Republican grandstand with special tax cuts for big business while the rest of us pony up according to the rules for peons.

      No special rules, JP… If Apple wants or needs to repatriate funds, it can pay the tax.

      1. In the country where the cash was earned, Apple already paid taxes. They paid sales tax (if any), import taxes (if any), employment taxes (if through a retail store), and any other taxes that might be applicable. And, more likely than not, the product never went anywhere near the US; it was manufactured and delivered overseas.

        Effectively, moving that money into the United States would be paying an import tax on the cash.

        Not expressing an opinion on that — just pointing out the reality of the situation.

        1. If the current U.S. tax system needs to be changed, then Congress needs to fix the tax code that applies to all businesses. If the current system discourages U.S companies from repatriating profits earned overseas, then change it to achieve the desired objectives. But I am firmly in opposition to special, ad hoc tax adjustments.

          1. I recognized the pun too late. Peace. I just wish that the American people and the political parties and candidates could have meaningful discussions about these topics.

            Unfortunately, the unthinking, extremist comments on this forum are evidence of why bipartisan compromise is currently difficult to achieve.

    1. Why should they be given any kind of break other than the ones that are in the current tax code? Are you getting a break from Uncle Sam? Come on man!

      1. And why should they bring it back if they don’t have any incentive? What they’re doing is perfectly legal and is done by hundreds of other companies. The only reasons Apple is singled out are the extraordinary amount of cash on hand they have compared to other companies and…well…I guess it’s fun to pick on Apple.

        1. “What they’re doing is perfectly legal and is done by hundreds of other companies.”

          Only because they bought pols that made it so.

          1. You are a fool. It’s been going on long before Apple with GM by every other manufacturer that sell goods outside the US. Try and remember when you spout shit you have no clue about, that the US government and laws are not that of other countries.

            1. I agree that corporate tax rates should be reduced, but not to the ridiculous levels espoused by Mitt RawMoney and the US Chamber of Commerce.

      2. Uncle Sam gives all kind of breaks and all types of people take advantage of them! Like rocker Jon Bon Jovi gets a property tax break because he raises bees and can apply for a farm subsidy and only pay hundreds on his assessed tax. His neighbor who doesn’t and is far from making the kind of money he makes, pays thousands for her assessed property.

        And so does Bruce Springsteen. Then Bruce complains about budget cuts? He doesn’t pay, legally mind you through available loopholes, but then complains when the state cuts because it doesn’t take in enough?

        http://www.theblaze.com/stories/farm-aid-for-bruce-springsteen-jon-bon-jovi/

        Apple made that money fair and square, the government needs to wise up regarding what they see belonging to others. Government sees it as forbidden fruit ripe for the taking. Fair share does not give one fleecing capabilities so they can grow an ever expansive, freedom denying, entitlement snaring, bureaucracy entangling, government centric nation!

        1. Quit spinning this, NN. Is the corporate tax situation substantially different than it was during the Bush administration? And who said anything about fleecing anyone? Since when is paying taxes according to the law ‘fleecing’? As far as I am concerned, it is irresponsible to be against paying taxes that are commensurate with the level of services provided.

          What I said above is, “If the current U.S. tax system needs to be changed, then Congress needs to fix the tax code that applies to all businesses.” In other words, don’t patch the system with ad hoc measures of convenience. JP’s statement was blatantly political and taxes are being used as political tool to manipulate voters. I am tired of the ‘tax cuts for free’ approach that results in big deficits and major socioeconomic imbalances that imperil the future viability of this country.

  1. Is Apple doing anything with that cash? Is that what Apple uses to purchase component supplies and build Apple stores overseas? It’s too bad Apple doesn’t use that mountain of cash to build a couple of data centers overseas or lay some high-speed underwater cable lines like some other companies are doing. With $74 billion both those products would amount to a drop in a bucket.

      1. You have heard of those new-fangled ‘fiber optic cables,’ haven’t you, JP? Why are you busting Laughing Boy’s balls over this? You can push a lot more terabits per second in a fiber optic cable over thousands of miles than you can an RF connection.

        In case you are not aware, some big money was recently used to lay a new cable across the Atlantic. The new route is shorter than the old one – short enough to provide milliseconds of time advantage. In financial terms, that means a lot of money.

        Another sorry post by JP…

      2. You really need to get laid, not that it would improve your ignorance and acerbicity.
        There’d be no resistance whatsoever if they treaded that cable trough you ears, , but try it anyway bimbo.

  2. They earned it overseas, that is why it’s there. Spent out of the pockets of non US citizens. Taxes already paid in foriegn countries. Apple is a global company. They have plenty of cash in the US. Why would they pay taxes again? If the US wants to benefit from Apple spending it in the US, they need to allow the money in without additional cost. The movement of cash is what drives an economy, not govt confiscation.

    1. Funny how we always hear about how the poor little corporations need never ending tax cuts, tax abatements, tariff protection, enterprise zones and all the rest or civilization will just come crashing down around all of our heads. This as they hoard cash and record record profits.

      One never hears about how America taxes the shit out of expatriates.

      1. Dear regressiveagentprovocateur: No other country in the world taxes their own corporations for money they earn elsewhere. Why the United States does this is beyond me. It’s just one big incentive to set up shop elsewhere. And it gives foreign firms a slight advantage in the market place.

        But hey, that’s OK. You can bet that overseas money that Apple won’t be bringing home will be put to good use by the local banks to fund economic growth, maintain liquidity and lower interest rates in these other countries. It’s just too bad that the U.S. won’t benefit.

        You call yourself progressive. What a sad joke, for you are anything but.

        (But I do agree with you about tariff protections, which are anti competitive, anti consumer and economically paralyzing.)

        1. The same thing is done to individuals who are expatriates, which I never hear anything about. Why so many cry for big corporations and let individuals get crushed is beyond me.

          I support a complete overhaul of our tax code and a ban on exemptions and carve outs by Congress. The high tax code and granting of exemptions is the source of much of the corruption in our system.

          I do support a reduction in corporate tax rates, but only as part of a larger reform that reverses Citizens United, removes standing of corporate money as speech, bans corporate political contributions and makes corporate officers criminally liable for corporate misconduct.

    1. Even by the absurdly low standards for political discourse on this forum, you’ve managed to set an even more debased standard, x. Congrats on your incredibly racist commentary.

      By the way, karma can be a bitch.

          1. I didn’t vote for Obamanation and will not this fall. He’s a Republican in Democratic clothing despite all the nonsense pushed by the corporate right that monopolizes our airwaves. A generation ago Obama’s positions would have been mainstream Republican.

  3. @bob dobbs

    Ask Switzerland administration how much tax Apple paid for the money they make on their business including iTunes, App Store, etc., in that country.

    How do you if and how much Apple pay taxes in the countries in some countries ? Those who make and have money, pay taxes, this is common sense.

  4. Get rid off your US$, this monkey money is doomed (hey trillions of depts!). And watch out if republicans come back to power… USA will sink faster than you can imagine. They’ll print more $ notes than you’ll be able to burn to heat your homes!

  5. But don’t you sort of wonder how it is that the government promoted the jobs offshoring plan a few years back, but left in this giant loophole that allowed companies to park their earnings offshore too?

    Something stinks.

    The government and corporations conspire to kill jobs and kill unions while effectively eliminating taxes on offshore earnings. Then they demand reduced taxes on these earnings and eventually, they’ll get them.

    Later, when the unions are dead and wages reduced, they’ll bring jobs back to the U.S. while increasing executive salaries and bonuses again.

    1. “Later, when the unions are dead and wages reduced, they’ll bring jobs back to the U.S. while increasing executive salaries and bonuses again.’
      Yep

      And the most amazing thing is that the people getting screwed over voted for the whole thing, because Rush, Sean and Bill-O told them so.

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