Newsletters

Apple Avoids $9.2 Bln in Taxes with Bond Deal

Company would have paid 35% tax to repatriate overseas cash.

By Peter Burrows, Bloomberg | Updated on May 03, 2013

Apple Inc. avoided as much as $9.2 billion in taxes by financing part of a $55 billion stock buyback with debt rather than offshore cash that would have been billed by the U.S. government, Moody’s Investment Services estimates.

Based on current rates, Apple will pay interest of about $308 million a year on the $17 billion bond offering, said Gerald Granovsky, a senior vice president at Moody’s.

“From a pure corporate-finance theory perspective, this was a no-brainer,” Granovsky said.

NOT FOR REPRINT

Dig Deeper

Recommended Stories

Investments Shift away from Bank Deposits

Tom Hunt | September 20, 2023

The 2023 AFP Liquidity Survey found that treasurers are reducing bank deposits and moving investments toward more secure vehicles, reflecting the U.S. economic climate of 2022 and the bank failures of 2023.

Treasury Moves Forward with Corporate Ownership Database

Fatima Hussein | September 30, 2022

The U.S. Treasury said its database will contain personal information on the owners of at least 32 million U.S. businesses as part of an effort to combat illicit finance.

‘Location, Location, Location’ Is Latest Challenge in Data Privacy Compliance

Chris O’Malley | July 31, 2023

“For the first time in U.S. states, companies will need to collect meaningful permissions from their customers to gather and apply data relating to the customers’ position on the globe.”

Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
Exclusive discounts on ALM and Treasury & Risk events.
Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now