Search
 
Alexander Hamilton Awards

Currency Risk Mitigation for Funds Awaiting Repatriation

The winner of the 2020 Gold Alexander Hamilton Award in Financial Risk Management is ... eBay. Congratulations!

eBay: 2020 Alexander Hamilton Gold Award in Financial Risk Management

San Jose, California–based eBay Inc. has substantial revenue flows in myriad regions and currencies around the globe. “eBay has some presence in a large proportion of the world’s countries,” says Dmitry Martynov, director of foreign exchange (FX) and corporate finance. “We have long operated in China, India, Korea, South Africa, and many others.”

Historically, eBay built up significant currency reserves in some of these jurisdictions. “We have long had an imbalance, where we generate 60 percent to 70 percent of our cash overseas but spend the bulk of our free cash flow in the United States,” Martynov explains. “Before the U.S. tax reform in late 2017, bringing back our overseas cash was not the most economical decision. The Tax Cuts and Jobs Act allowed eBay Inc. to receive future offshore distributions without U.S. taxation.”

Thanks to the law, the company’s international subsidiaries were able to distribute excess offshore cash—funds above what they needed locally—to eBay Inc. In some markets, though, distributing excess cash was easier said than done.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Meg Waters

Meg Waters

Meg Waters is the editor in chief of Treasury & Risk. She is the former editor in chief of BPM Magazine and the former managing editor of Business Finance.

More from this author

 

Recommended Stories

Optimizing Cash Requires a Remodel

Optimizing Cash Requires a Remodel

Eric Krell |

As interest rates rise, treasury teams should re-evaluate cash forecasting models to be sure they fully understand the risk associated with a pursuit of higher returns.

Treasury & Risk

Join 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
Join Treasury & Risk

Copyright © 2023 ALM Global, LLC. All Rights Reserved.