Cash-Repatriation Math on Large-Cap Tech


With pending passage of tax reform several of the major Tech sector names were looked at to see what percentage of their outstanding shares could be repurchased with repatriated cash from abroad.

Most Technology companies disclose in their Q’s and K’s how much of their cash balances are both Non-US and US-domiciled.

Above is a quick spreadsheet thrown together today. (Check my math please).

The one name that surprised me was Oracle.

The big three repatriation beneficiaries are Apple, Microsoft and Oracle.

There is still a lot of questions here: if a 10% “repatriation tax” is imposed, and the go-forward rate is 20% doesn’t that leave companies in the same boat they are in now ?

This is just Tech too – i thought about big Pharma’s but didn’t have the time.

Here is the spreadsheet progression:

  • Top section details all of the 10-Q info on cash and marketable securities
  • The middle section details the “cash hit” of 10% from the “repatriation” tax
  • The bottom section subtracts the tax penalty from non-US cash, and the looks at today’s share prices and calculates how many shares can be bought from “repatriated cash” and then divides that amount by total outstanding common shares as of the last earnings report.

That is the math.

As my oldest sister would say, “now I know why you are single”.

If readers have companies you want added to this list let me know and it can be expanded until actual passage of the tax bill.

Thanks for reading.

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