“Apple Inc. said it issued $7 billion in corporate bonds, according to a Securities and Exchange Commission filing late Thursday,” Wallace Witkowski reports for MarketWatch.
“Apple has been using debt to pay shareholders while holding most of its $256 billion in cash overseas to avoid repatriation taxes,” Witkowski reports. “The company increased its shareholder-return program last week to $300 billion in concert with a quarterly earnings report that showed Apple added slightly more debt than cash in the quarter.”
Witkowski reports, “Since Apple launched its shareholder-return program in 2012, its long-term debt has risen from zero to nearly $85 billion as of the end of last quarter.”
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MacDailyNews Take: Until U.S. tax reform, including a repatriation holiday, expect to see more of this.
It’s difficult for us to speculate about what might or might not happen. The program that we’re announcing today reflects the current tax legislation in this country, and there’s a lot that still needs to happen there, and we’ll see. Obviously, we will reassess our situation if things change. – Apple CFO Luca Maestri, May 02, 2017
The fact that Apple has to issue bonds is a reminder of why urgent U.S. tax reform is needed – May 12, 2017
Apple borrows billions while sitting on massive overseas cash mountain – May 10, 2017
Why Apple is investing $148 billion in corporate debt – May 4, 2017
President Trump’s tax reform plan includes deep cuts in corporate taxes – April 26, 2017
Apple raises $10 billion in debt ahead of President Trump’s repatriation tax plans – February 3, 2017
After Apple’s blowout earnings, the Street looks toward ‘iPhone X’ and President Trump’s tax reforms – February 3, 2017
President-elect Trump’s corporate tax reform expected to have some positive impact on Apple EPS – January 14, 2017
Apple has now amassed nearly $80 billion in debt – September 12, 2016