Apple issues $7 billion in corporate bonds

“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.”

Read more in the full article here.

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


    1. Another know-nothing–that Dave! Apple already paid appropriate taxes in each country where the income was earned. How would you like to be taxed by Romania for your earnings in the USA, you fool?

      1. It happens to US citizens every day.
        The tax laws should be changed, but what is on the books is on the books and if you were found banking money overseas to avoid US taxes you would be charged with income tax evasion.
        It amazes me that people of common means worry about the taxes paid by the wealthy and corporations. You as an individual pay a higher effective rate on your income than the effective rate of corporate taxes in these United States.
        Finally, why is income derived from employment taxed at a higher rate than income derived from investment?

  1. Apple could just stop putting itself in the Liability hole and focus on making the best machines ever. Playing Wall Street is a stupid strategy. It should have no debt whatsoever.

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