Apple Unveils $38 Billion In Expected Repatriation Tax, Reveals New Job Creation Plan

Apple stock jumped then dumped after it issued a press release in which the company disclosed how much it expects to pay in repatriation tax to bring its massive offshore cash hoard home, in addition to unveiling its near-term US investment and capital spending plans.

The world's most valuable company said that it anticipates repatriation tax payments of approximately $38 billion as required by recent changes to the tax law, noting that "a payment of that size would likely be the largest of its kind ever made."

Additionally, AAPL announced a new set of investments "to build on its commitment to support the American economy and its workforce, concentrated in three areas where Apple has had the greatest impact on job creation: direct employment by Apple, spending and investment with Apple’s domestic suppliers and manufacturers, and fueling the fast-growing app economy which Apple created with iPhone and the App Store."

In total Apple expects to provide $350BN to the US economy over the next five years, create 20,000 new jobs at Apple and increase the size of its advanced manufacturing fund from $1 to 45 billion.

* * *

In the statement Apple said it is already responsible for creating and supporting over 2 million jobs across the United States "and expects to generate even more jobs as a result of the initiatives being announced today."

Apple calculates that in combination with new investments and Apple’s current pace of spending with domestic suppliers and manufacturers — an estimated $55 billion for 2018 — Apple’s direct contribution to the US economy will be more than $350 billion over the next five years, not including Apple’s ongoing tax payments, the tax revenues generated from employees’ wages and the sale of Apple products.

Apple announced that its planned capital expenditures in the US, investments in American manufacturing over five years and a record tax payment upon repatriation of overseas profits will account for approximately $75 billion of Apple’s direct contribution.

Additionally, Apple expects to invest over $30 billion in capital expenditures in the US over the next five years and create over 20,000 new jobs through hiring at existing campuses and opening a new one. Apple already employs 84,000 people in all 50 states.

Just like Amazon, Apple said it "plans to establish an Apple campus in a new location, which will initially house technical support for customers. The location of this new facility will be announced later in the year."

Additionally, over $10 billion of Apple’s expanded capital expenditures will be investments in data centers across the US. Over the last decade, Apple has invested billions of dollars in data centers and co-located facilities in seven US states, including North Carolina, Oregon, Nevada, Arizona and a recently announced project in Iowa.

Furthermore, Apple said it is increasing the size of its Advanced Manufacturing Fund the fund from $1 billion to $5 billion. "The fund was established to support innovation among American manufacturers and help others establish a presence in the US. It is already backing projects with leading manufacturers in Kentucky and rural Texas."

Finally, some details on Apple's iOS economy investment:

The iOS app economy has created more than 1.6 million jobs in the US and generated $5 billion in revenue for American app developers in 2017. With demand for coding skills stronger than ever, today there are more than 500,000 unfilled programming-related positions across the country, and the US Bureau of Labor Statistics predicts that by 2020 there will be 1.4 million more software development jobs than applicants qualified to fill them.

To address the coding skills gap and help prepare more people for jobs in software development, Apple created a powerful yet easy-to-learn coding language called Swift, the free Swift Playgrounds app and a free curriculum, App Development with Swift, which are available to anyone and are already being used by millions of students at K-12 schools, summer camps and leading community colleges across the country. Over 100,000 students and teachers have also attended coding classes at Apple retail stores.

Tim Cook commented on the new capital allocation plan:

“Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy,” said Tim Cook, Apple’s CEO. “We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness. We have a deep sense of responsibility to give back to our country and the people who help make our success possible.”

The stock jumped, then slumped on the news, trading largely unchanged.

sdf

 

Comments

spastic_colon Wed, 01/17/2018 - 13:30 Permalink

Apple expects to invest over $30 billion in capital expenditures in the US over the next five years and create over 20,000 new jobs through hiring at existing campuses and opening a new one.

 

How many people does it take to push the buyback button sheesh?!

JimmyJones macholatte Wed, 01/17/2018 - 13:53 Permalink

You are being sarcastic right?

On the topic, we need to deregulate the BS around Thorium so that we can start making use of Rare Earth Minerals again (haven't been able to since Bill Clinton).  This needs to happen if we want to start manufacturing Electronic components again.  If we can do that than we can build electronics from beginning to end.  This should be a National Security Concern. 

In reply to by macholatte

junction spastic_colon Wed, 01/17/2018 - 13:43 Permalink

What happens when AI replaces those coding jobs Apple is bragging about?  Manufacturing jobs are the one job category which will still need humans until someone develops a humanoid android.  "Free trade" has wiped out large swathes of manufacturing jobs in the USA.  40 years ago, there were garment trade quotas in the USA and the garment industry in New York City employed over 300,000 workers, unionized and off-the books.  Starting 20 years ago, those jobs got off-shored, never to return.   Apple made its fortune teaming with the Chicom Communist Party generals to operate slave labor-type factories in China, where workers got ripped off and where child labor was rampant.  Not much change now, only the child labor is mostly gone.  The spoilers have won.    

In reply to by spastic_colon

JimmyJones junction Wed, 01/17/2018 - 13:52 Permalink

AI writing code is a long way off, AI having "ideas" for apps that people would like is even further out.  Sure current AI, not really intelligent can write code to recognize faces but that code to figure out that code was written by a human.  Humans will be at the base (or top depending on perspective) of the creative pyramid for a while.  I still think its a good idea to learn or teach your kids, how electronic components work, how they are applied and how to program things like the Arduino so that they can compete in the future jobs market.  Automation is the future, best not be a "ditch digger" when it fully arrives.

In reply to by junction

LightBeamCowboy Wed, 01/17/2018 - 13:32 Permalink

Yawn... wake me up when you can buy a Made In USA iPhone. And in a factory that doesn't require anti-suicide nets outside the windows to keep the employees from killing themselves.

Panic Mode Juggernaut x2 Wed, 01/17/2018 - 13:43 Permalink

I am not saying he is going to create 20k jobs. You are just a socialtard obsessed of these agendas clouded your thinkings.

I am saying his best interest is what's best for the company tax. Job creation is just an excuse of bringing their reserves to take advantage of the low tax, same approach as "lowering your iPhone performance for your own good to preserve the battery." Yeah, right.

In reply to by Juggernaut x2

Ikiru Wed, 01/17/2018 - 13:35 Permalink

Who could have imagined that if you improve the business tax environment in America, businesses may actually want to do more business here?  A shocking development for economically illiterate liberals.  

LetThemEatRand Ikiru Wed, 01/17/2018 - 13:47 Permalink

"Who could have imagined that if you improve the business tax environment in America, businesses may actually want to do more business here?"

Last time I checked, Apple was already doing business here, and based on the press release it will continue to offshore all manufacturing of its product and hire H1B1 Visa employees.  Note also that many of the "jobs" referenced in the article include salesmen selling iPhones at apple stores nationwide.  You know, the service economy.

In reply to by Ikiru

LetThemEatRand Ikiru Wed, 01/17/2018 - 14:09 Permalink

I'm all in favor of reducing corporate taxes, but the current tax bill mostly benefited very large corporations with international operations, and most importantly tax cuts for these corporations were not offset by cuts in government spending.  So more borrowing, bigger deficits.   My other beef is that the tax bill is almost entirely a continuation of trickle down economics, which 40+ years should have taught us does not benefit the middle class.   Candidate Trump said he would focus tax cuts "mostly" on the middle class, but in fact only about 20% of the cuts go to the middle class.  He also said he would balance any tax cuts with spending cuts.  So two yuge lies.

In reply to by Ikiru

wmbz Wed, 01/17/2018 - 13:39 Permalink

Great again USA news!

This means no more FoxxConn right? No more chink, slave labor making the i-phones right?

You go APPL show'um how it's done.... Not!

Meat Hammer Wed, 01/17/2018 - 13:43 Permalink

Let me get this straight...

Apple, the poster child company for young stupid millennial libs, is slapping progressive ideology in the mouth and PROVING that lower taxes do indeed create jobs!

bladrnr_2019 Wed, 01/17/2018 - 13:44 Permalink

It's a start. Kudos to Trump. He got one of his biggest haters to bring $38B back in taxes. This is how you get your enemies to work with you. Whatever you think of Trump he's getting things done.

Md4 PitBullsRule Wed, 01/17/2018 - 14:51 Permalink

Shit.

Likely "call center" jobs...

Like most of our corporate bastards, they want you to BUY it...

 

...but they aren't going to pay you to BUILD it.

 

For more than four decades, these traitorous sumbitches systematically destroyed the working class in this country via outsourcing.

Suddenly, they're all waving Old Glory, while they begin strutting some new patriotic swagger.

They've got one helluva long way to go to be worthy of your money and respect again.

At this point, they simply don't rate it.

 

Hint corporate America: it all begins with "We're sorry. We were WRONG..."

 

Crickets.

In reply to by PitBullsRule

SummerSausage Wed, 01/17/2018 - 14:05 Permalink

Crumbs, says Pelosi. $38 billion is just crumbs.  It's the apocalypse.  (By the way, you can donate to Pelosi by sending $38 billion or more to her website.)

Md4 Wed, 01/17/2018 - 14:20 Permalink

 

“Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy,” said Tim Cook, Apple’s CEO. “We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness. We have a deep sense of responsibility to give back to our country and the people who help make our success possible.”

 

Yeah.

Right.

END overseas manufacturing.

Most Americans aren't interested in becoming or being "coders". They simply want good, stable blue collar jobs that aren't outsourced, or that change with every "brilliant" idea that floats through a pointy head.

YOU'RE the ones racing manically forward. The rest of us already have more techie gadgets than we need, or can afford.

 

So...what else can you come up with?

How 'bout ASKING US for a change, Mr. Cook?

 

Then, listen.

 

Really listen...