What Apple will do with its GOP tax windfall

Same as usual: Raise dividends and buy back shares.

If history is any guide, the Republicans just gave Apple shareholders a big fat gift.

Not seeing the interactive chart? Try the website.

My take: I can see the arguments for a corporate tax cut and a repatriation tax holiday. But the bill that just passed looks to me (and not just to me) like payback for donors. For the record, Tim Cook gives money both parties, slightly favoring Republicans.

UPDATE: From Neil Cybart at Above Avalon:

  • Apple will bring its foreign cash back to the U.S.
  • Apple will likely slow the pace of debt issuance given significant U.S. cash.
  • Apple will likely increase the pace of share buyback.
  • Apple’s effective tax rate going forward will likely be somewhere in the mid-teens.

See also:


    • We’ve been ’round this before, Fred. We agree that the headcount went from 72.3K to 123K. What you must have missed was the note on the chart that explains that I multiplied the headcount by the average salary at Apple’s Cupertino headquarters—a crude estimate but the best I’ve got. When I do the math I get the expenses for salaries growing from $9.1 billion in 2012 to $15.4 billion in 2017. I’ve checked my arithmetic several times now and it always comes out the same.

      December 20, 2017

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