These Are The 15 US Companies With The Most Offshore Profits

Tyler Durden's picture




 

In the aftermath of several recent events such as i) the issuance of new mega batch of $12 billion in bonds by a suddenly domestic-cash strapped Apple, ii) the repatriation of $9 billion in offshore profits (and payment of $3 billion in taxes) by eBay, iii) the flurry of pharma M&A deals and reverse mergers in which US companies are redomiciled offshore (in low corporate tax hosts like Ireland) to avoid paying US taxes, and iv) the outright use of offshore funds to buy offshore companies such as the GE-Alstom deal which bypasses the US treasury entirely, two questions emerge: who has the most offshore cash, and who is most likely to be the next US corporation to engage in one or all of the above listed transactions which merely seek to optimize a company's offshore cash holdings.

The answer is shown on the chart below: this is the list of the top 15 US companies that have the bulk of accumulated offshore profits, amounting to roughly $1 trillion in cash, which is never subjet to US taxation, and which financial engineers try to generate the highest shareholder returns on.

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Sat, 05/03/2014 - 19:21 | 4724685 kaiserhoff
kaiserhoff's picture

So ZH thinks everyone should pay the highest possible taxes?

WTF?

Sat, 05/03/2014 - 19:22 | 4724691 WillyGroper
WillyGroper's picture

Yea, WTF.

How do you derive the highest from none? 

Do you think they repatriate these monies?

Sat, 05/03/2014 - 19:28 | 4724702 kaiserhoff
kaiserhoff's picture

Only the US is greedy and stupid enough to try to tax world wide income on its citizens and corporations.

As ye sow, so shall ye reap.

Sat, 05/03/2014 - 22:19 | 4725024 TheRedScourge
TheRedScourge's picture

This is easy to explain. These multinationls do a ton of business overseas, esp since America is broke now, and so they're shifting so they can claim losses in the US so they can do gains under a lower tax rate overseas.

American companies that also operate in Canada have done that sort of thing for decades, especially resource companies. They'd get it out of the ground, whatever it is, and ship it back to the US to do all their high value work. Now guess the US is on the opposite side of that deal, sure didn't take long with Conservatives power in in Canada and Liberals in power in US.

Sat, 05/03/2014 - 23:35 | 4725154 James_Cole
James_Cole's picture

This is easy to explain. These multinationls do a ton of business overseas, esp since America is broke now, and so they're shifting so they can claim losses in the US so they can do gains under a lower tax rate overseas.

>>> U.S. multinational companies reported earning 43 percent of their 2008 overseas profits in Bermuda, Ireland, Luxembourg, the Netherlands and Switzerland <<<

That ought to clear that one up..

http://www.bloomberg.com/infographics/2014-03-12/offshore-profits-avoid-...

Sun, 05/04/2014 - 00:28 | 4725232 Theosebes Goodfellow
Theosebes Goodfellow's picture

What's the frickin' deal here?

~"Merchants have no country. The mere spot they stand on does not constitute so strong an attachment as that from which they draw their gains."~

Tommy Jeff busted it all out for you. Now you're acting all surprised?

Did you really think you'd get patriotism, fidelity or trust from a corporation? And nationalizing any corporation isn't a good idea either. Look how .gov handled owning GM.

Sun, 05/04/2014 - 00:44 | 4725250 QQQBall
QQQBall's picture

Easy now - Corporations have feelings too. Day be peeps in the eyes of the SCOTUS

Sun, 05/04/2014 - 02:02 | 4725321 RichardP
RichardP's picture

Only when it comes to expressing political views.  But not when it comes to expressing religious views.

Sat, 05/03/2014 - 20:07 | 4724769 FeralSerf
FeralSerf's picture

Only the US taxpayer is stupid enough to continue supporting corporate welfare tax cheats like GE.

GE is greedy enough to keep taking the taxpayer dollars and giving little in return to the American workers and taxpayers.

Sat, 05/03/2014 - 20:32 | 4724819 strannick
strannick's picture

These companies avail of US services, education and infrastructure. They don't pay taxes but are then subsidized by the tax payers who provide them these services.

Sat, 05/03/2014 - 23:11 | 4725109 Mike in GA
Mike in GA's picture

Don't blame the corporations.  Blame the government policies that incentivise tax avoidance. Blame the politicians for taking the bribes to make the flawed tax policies.  "Set an example" of a few corrupt politicians as they like to do with us and you'll see change.  Until some politicians are brought to justice for their self aggrandizing malfeasance there will be no change.

Sat, 05/03/2014 - 23:38 | 4725157 James_Cole
James_Cole's picture

Blame the government policies that incentivise tax avoidance. Blame the politicians for taking the bribes to make the flawed tax policies. 

You mean the government policies written by lobbyists? 

http://www.theatlantic.com/technology/archive/2010/10/googles-ceo-the-la...

From the horse's mouth:

"The average American doesn't realize how much of the laws are written by lobbyists" to protect incumbent interests, Google CEO Eric Schmidt told Atlantic editor James Bennet at the Washington Ideas Forum. "It's shocking how the system actually works."

Sun, 05/04/2014 - 00:00 | 4725186 prains
prains's picture

Mike

 

the tax laws are written by the corporations hence the term "cronyism" has been bandied about for the last few decades, maybe you've heard of the word?

Sun, 05/04/2014 - 00:11 | 4725201 hidingfromhelis
hidingfromhelis's picture

Both the corporation making the bribe and the legislator accepting the bribe deserve contempt.  Takes two to tango.

Sun, 05/04/2014 - 00:19 | 4725217 prains
prains's picture

if contempt is spelled, r.o.p.e then i would agree

Sun, 05/04/2014 - 02:25 | 4725333 Grouchy-Bear
Grouchy-Bear's picture

Tecnically the system is broke and it does not work with out bandaids all over it!

Sun, 05/04/2014 - 08:01 | 4725513 SilverDOG
SilverDOG's picture

kaiserhoff,


 

**CORRECTION**

 

"Only the U.S. is greedy and stupid enough TO TAX world wide income on its CITIZENS"

 

Now I understand the problem. Constitutional evisceration !

Remove peasant income tax !

Make corporations pay DUE taxes at least; you 90 day investment addict.

Sun, 05/04/2014 - 08:18 | 4725525 AvoidingTaxation
AvoidingTaxation's picture

It is not true Kaiserhoff CIt:

 

Only the US is greedy and stupid enough to try to tax world wide income on its citizens and corporations.

 

USSA, North Korea and Eritrea.

Sun, 05/04/2014 - 08:41 | 4725548 Bloody Muppet
Bloody Muppet's picture

The first $90k/annum tax-free is hardly greedy. What's greedy is companies keeping $100s of billions offshore so they don't feed back into the system that helped them get so big.

Sun, 05/04/2014 - 12:48 | 4726008 FeralSerf
FeralSerf's picture

For individuals that's $90K of tax-free EARNED income. If you don't have a foreign sourced job, it's passive income which is taxed completely. Corporations don't get U.S. taxed on ANY income, passive or otherwise, held off shore.

Sun, 05/04/2014 - 10:20 | 4725667 shouldvekilledthem
shouldvekilledthem's picture

Only the US is greedy and stupid enough
 

 

I'm not sure what planet you are on but I find that every government does the same. 

Sun, 05/04/2014 - 10:27 | 4725679 sessinpo
sessinpo's picture

kaiserhoff         Only the US is greedy and stupid enough to try to tax world wide income on its citizens and corporations.

As ye sow, so shall ye reap.

----

Apparently you missed the memo on various global institutions like the UN, World Bank, and IMF. These social institutions want to brine a NWO that taxes everyone everywhere.

Sat, 05/03/2014 - 19:31 | 4724707 imapopulistnow
imapopulistnow's picture

The dumbest part of our tax policy of encouraging corporations to use every trick in the book to report their profits as coming from overseas, is that they are likely paying foriegn corporate taxes on profits that are earned here.  But the corporation haters just cannot stand the thought of lowering corporate tax rates even though most of the rest of the world has lowered theirs.

Sat, 05/03/2014 - 19:41 | 4724725 LetThemEatRand
LetThemEatRand's picture

The reason this matters is that it is just another example of the mega-corporations writing the laws in a way that they receive a benefit that small business does not.   It also encourages off-shoring.  I'm not a corporation hater.  I own a corporation.  I am an anti-competitive oligarch corporation hater.

Sat, 05/03/2014 - 20:12 | 4724781 y3maxx
y3maxx's picture

...Corrupt American Corporations have Corrupted Washington Lawmakers and both are laughing all the way to "Banks".... in NY. No pun intended

Sun, 05/04/2014 - 00:04 | 4725192 prains
prains's picture

the corporations ARE to blame MIKE......

 

they've poisoned the well of ideas around FAIR and HONEST trade. The OLIGARCHS have tilted the playing field in their favor when it comes to policy, finance, lawmaking, labor arbitrage, etc....I'm getting sick and tired of fucking lists

Sun, 05/04/2014 - 05:22 | 4725437 Fiat Envy
Fiat Envy's picture

The idea that someone "corrupted" previously honest politicans is laughable.  Not that the crony capitalists are any better.

Sun, 05/04/2014 - 07:51 | 4725507 falak pema
falak pema's picture

cocka doodle to you! 

Didn't spell it right to avoid ruffling tea and sympathy feathers! 

Sat, 05/03/2014 - 19:36 | 4724714 RSloane
RSloane's picture

Wow. That list is no different than one of major corporations who contribute heavily to political campaigns. Immelt, who Obama referred to as "someone who knows how to get business done in the US", also had off-shored thousands of jobs before he was appointed Jobs Council czar. I wonder what the total cost of that appointment was.

Sat, 05/03/2014 - 19:36 | 4724715 Sudden Debt
Sudden Debt's picture

You don't get it.

Look: GE

They fucking top the bill!!!

7 YEARS AGO THEY WHERE BANKRUPT AND NEEDED TO BE SAVED WITH HUNDREDS OF BILLIONS OF TAXMONEY!!

And what do they do? They simply don't pay taxes.

So in the end, there's only one greater fool, the one paying taxes.

Sat, 05/03/2014 - 19:46 | 4724733 RSloane
RSloane's picture

Yup: http://www.cnsnews.com/news/article/obama-administration-gave-general-electric-parent-company-nbc-249-million-stimulus 

In all GE got 14 different stimulus grants even though at the time GE was laying off thousands of American workers whose jobs were being shipped overseas.

 

Sat, 05/03/2014 - 21:30 | 4724942 optimator
Sat, 05/03/2014 - 20:04 | 4724760 JenkinsLane
JenkinsLane's picture

amen

Sat, 05/03/2014 - 20:08 | 4724770 buzzsaw99
buzzsaw99's picture

um, they still are bankrupt. lulz

Sat, 05/03/2014 - 22:23 | 4725038 Kirk2NCC1701
Kirk2NCC1701's picture

Don't just get mad. Get even, do the same thing: offshore part of your assets and (if possible) your revenue stream.

Enter guys like Simon Black, whose mission and biz model it is to keep a good chunk of your assets globally.

As for the rest (of us), we need to protect whatever assets we can, and TRY to get these freeloaders to pay up. You start by raising REAL issues at elections, and not get distracted/suckered by "Red Meat" issues, that the GOP and Libertarian voters always fall for.

Sun, 05/04/2014 - 00:12 | 4725204 ricky663
ricky663's picture

We left the country already ... Sold everything including a profitable business and move to Thailand in 2012.
Once the TBTF banks got away with their heist of taxpayer loot, and "paid a fine" as their "legal settlement," I realized that the legal system was broken.
As far as using elections to change the system... Not gonna happen. The criminopoly is too far entrenched to allow any major changes IMO.

Change the system - unlikely, live within the system - continue to be fleeced, or exit the system - maybe the best option for some.

Sun, 05/04/2014 - 09:41 | 4725612 FredFlintstone
FredFlintstone's picture

Hasn't there been a lot of political turmoil there in the past decade or so? Do you speak the local lanuage? I take it you are happy with the move?

Sun, 05/04/2014 - 10:47 | 4725716 sessinpo
sessinpo's picture

Kirk2NCC1701          Don't just get mad. Get even, do the same thing: offshore part of your assets and (if possible) your revenue stream.

----

The US is/has already pursued people that hide offshore accounts and profits in various banks. Even Switzerland's banks, which were know for protection and privacy, gave in.

------

Kirk2NCC1701           As for the rest (of us), we need to protect whatever assets we can, and TRY to get these freeloaders to pay up. You start by raising REAL issues at elections, and not get distracted/suckered by "Red Meat" issues, that the GOP and Libertarian voters always fall for.

I hope you meant liberals because there are few and far between Libertarians to even make a difference even if they get distracted/suckered. Just upon that, you need to rethink your statement. Libertarians are hated by the left and right as they are not part of the two party system. The truth is that "REAL" issues aren't really brought up at elections. Has the deficit been solved by Dems or Reps yet? No. Is our military standing and safehood of the US better? No. Basically, those are the main two things the Government should be doing, but is not. Instead, it is enslaving its own population to make up for its own flaws. Nothing new historically here. Government either attacks abroad or it attacks internally. Watch out when it tries to do both!

Sat, 05/03/2014 - 19:42 | 4724721 mrmister
mrmister's picture

General Electric? You mean the company that didn't pay hardly any us taxes at all and got a government bailout from the tax payers? The company that most of its business is from the government? The company that makes everything from light bulbs to jet engines yet is not a monopoly because they may have one competitor from another country?

Sat, 05/03/2014 - 20:45 | 4724843 kurt
kurt's picture

They built and sold, along with Hitachi, that God Damn Fucking Fukushima!

I don't YET see them doing anything to help out.

Sun, 05/04/2014 - 07:31 | 4725494 TeamDepends
TeamDepends's picture

The warranty expired.

Sun, 05/04/2014 - 10:02 | 4725633 Ropingdown
Ropingdown's picture

They chintzed when offered the extended warrantee.

Sat, 05/03/2014 - 21:19 | 4724925 vincent
vincent's picture

So, how much in taxes did GE pay in the US last year?

Oh, that's right, they got a fucking rebate....

Would you consider that a high tax rate?

Sun, 05/04/2014 - 05:45 | 4725445 falak pema
falak pema's picture

Is Piketty now elected to rank of TD? 

LOL ! 

Sat, 05/03/2014 - 19:21 | 4724688 WillyGroper
WillyGroper's picture

Well, there's only 2 that I can make a contribution held worth of difference to.

I'm doing my part.

Sat, 05/03/2014 - 19:51 | 4724716 buzzsaw99
buzzsaw99's picture

GE, $400B in debt. #WINNING!!

(edit: rated AA+ by S&P) #WINNING!!

Sat, 05/03/2014 - 19:43 | 4724729 MedicalQuack
MedicalQuack's picture

Ok if you have never seen it, "The Tax Free Ride" a documentary on off shore tax havens.  It's done well and starts out even showing you how companies really market to keep this issue away from how the public perceives CEOs, in other words don't associate this little factor with them:)

Check out the old rich guy and his early stock technologies...pretty interesting..

http://ducknetweb.blogspot.com/2013/08/the-tax-free-tour-documentary-on-...

 

 

Sat, 05/03/2014 - 19:55 | 4724746 buzzsaw99
buzzsaw99's picture

C, $500B in debt. #WINNING!!

(edit: subordinated debt rated BBB+) #WINNING!!

Sat, 05/03/2014 - 20:02 | 4724753 buzzsaw99
buzzsaw99's picture

In order to pay their taxes, pay off all their debts, buy back all their stock (at Friday's prices) those companies would need many, many (5X? 10X?)  multiples of cash on hand. And C, unless they plan to corzine depositor's money, would need like infinity X.

Sat, 05/03/2014 - 20:43 | 4724838 kurt
kurt's picture

Wipe them out. Take it all.

We'll find others to do what they did right

And we'll be better off because of what they do wrong.

Kill The Beast

Stab it through the Heart!

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