Apple's $76B in cash reserves surpass US government operating balance
New figures from the U.S. Treasury Department indicate that the government has a total operating cash balance of $73.768 billion, less than Apple's own war chest of $75.876 billion.
As noted by Matt Hartley of the Financial Post, the news comes even as Republican and Democrat lawmakers debate over the federal budget and debt ceiling. The government's $73 billion number actually represents the "financial headroom" that lawmakers have before reaching an arbitrary debt ceiling, according to the report.
Apple reported having nearly $76 billion in cash on hand as of June 25, 2011. That's an impressive increase of $10 billion from the previous quarter, when the Cupertino, Calif., company had $65.8 billion in cash reserves.
Apple's war chest has grown quickly since 2005, when it had just $9 billion in reserves. As of the end of 2010, Apple's $60 billion stockpile gave it more cash than any other non-financial company in the U.S.
Shares of Apple closed above $400 for the first time earlier this week, before settling down some, eventually closing at $391.82 on Thursday. The company's market capitalization stands at $363.25 billion, behind only Exxon Mobil, which boasts a market cap of $403.93 billion.
As Apple's cash reserves have soared, several analysts and investors have called for a dividend that would redistribute some of the company's profits to shareholders.
However, Apple CEO Steve Jobs has said that the company's cash hoard is being saved for big moves. "We don't let the cash burn a hole in the pocket or make stupid acquisitions," he said last year. "We'd like to continue to keep our powder dry because we think there are one or more strategic opportunities in the future."
Patent acquisition may be one such strategic opportunity for Apple. The company recently paid $2.6 billion to outbid rival Google, which had $39.1 billion in cash reserves at the end of June, for a collection of more than 6,000 patents from Canadian telecom equipment maker Nortel. Apple teamed up with a consortium that included Microsoft, Research in Motion and Sony, pooling the group's resources in order to place the $4.5 billion winning bid.
Apple is also said to be weighing a bid for Interdigital, a company with a portfolio of 8,800 patents. InterDigital CEO William Merritt claims his company's patents are "deeper and stronger" than Nortel's collection.
As noted by Matt Hartley of the Financial Post, the news comes even as Republican and Democrat lawmakers debate over the federal budget and debt ceiling. The government's $73 billion number actually represents the "financial headroom" that lawmakers have before reaching an arbitrary debt ceiling, according to the report.
Apple reported having nearly $76 billion in cash on hand as of June 25, 2011. That's an impressive increase of $10 billion from the previous quarter, when the Cupertino, Calif., company had $65.8 billion in cash reserves.
Apple's war chest has grown quickly since 2005, when it had just $9 billion in reserves. As of the end of 2010, Apple's $60 billion stockpile gave it more cash than any other non-financial company in the U.S.
Shares of Apple closed above $400 for the first time earlier this week, before settling down some, eventually closing at $391.82 on Thursday. The company's market capitalization stands at $363.25 billion, behind only Exxon Mobil, which boasts a market cap of $403.93 billion.
As Apple's cash reserves have soared, several analysts and investors have called for a dividend that would redistribute some of the company's profits to shareholders.
However, Apple CEO Steve Jobs has said that the company's cash hoard is being saved for big moves. "We don't let the cash burn a hole in the pocket or make stupid acquisitions," he said last year. "We'd like to continue to keep our powder dry because we think there are one or more strategic opportunities in the future."
Patent acquisition may be one such strategic opportunity for Apple. The company recently paid $2.6 billion to outbid rival Google, which had $39.1 billion in cash reserves at the end of June, for a collection of more than 6,000 patents from Canadian telecom equipment maker Nortel. Apple teamed up with a consortium that included Microsoft, Research in Motion and Sony, pooling the group's resources in order to place the $4.5 billion winning bid.
Apple is also said to be weighing a bid for Interdigital, a company with a portfolio of 8,800 patents. InterDigital CEO William Merritt claims his company's patents are "deeper and stronger" than Nortel's collection.
Comments
it really is an Apples to oranges thing.
:-)
or maybe it's an Apple to Apple-Pie thing
ken
Clearly the uber-rich need another tax cut.
Wait, the government actually has credit?
Clearly the uber-rich need another tax cut.
They prefer to called (if you watch FOXNews) "job creators"
Wait, the government actually has credit?
Clearly the uber-rich need another tax cut.
The top 50% pay 97.3% of all taxes.
The bottom 50% pay 2.7% of all taxes.
47% pay *nothing*.
On a side note, 80% of "poor" households can afford cable/satellite TV.
On another side note the average "poor" family in America has the same living space as the *average* family in Europe.
Its sad that liberals like to think that we have people dying in the streets and we need to raise taxes when in fact we (taxpayers) are subsidizing luxury items for a population that has an unparalleled quality of life.
Wait, the government actually has credit?
Clearly the uber-rich need another tax cut.
I am always happy to have my taxes cut, regardless of reason or season.
Oh, I am not uber-rich, by any means.
The top 50% pay 97.3% of all taxes.
The bottom 50% pay 2.7% of all taxes.
47% pay *nothing*.
Oh, you must mean those families with less than $33k of yearly income?
Oh, you must mean those families with less than $33k of yearly income?
Yep! The ones getting tax rebates on taxes they never paid. Those guys...
The top 50% pay 97.3% of all taxes.
The bottom 50% pay 2.7% of all taxes.
47% pay *nothing*.
On a side note, 80% of "poor" households can afford cable/satellite TV.
On another side note the average "poor" family in America has the same living space as the *average* family in Europe.
Its sad that liberals like to think that we have people dying in the streets and we need to raise taxes when in fact we (taxpayers) are subsidizing luxury items for a population that has an unparalleled quality of life.
That is purely bullshit. While the poor do not generally pay Federal Income Tax, the still pay Social Security tax, which is capped at $106,800 so the wealthy pay a far smaller percentage of their income in that tax. They also receive a larger portion of their earnings from capital gains which are only 15%. The poor are also subject to sales tax, registration taxes, phone taxes and a myriad of other taxes and fees that eat up a far greater percentage of their net worth than the rich are subjected to. There is NO ONE in this country who does not pay some sort of tax unless they never buy anything. The wealthy pay at a far lower rate than they have since the Great Depression although they use are far greater portion of the government services than anyone else. Does the average citizen ever use the courts, the patent office, oil leases, the services of the FBI, SEC, Secret Service or any other government department except maybe the Transportation Department and the Park Service?
And don't get me started on the average family in Europe. At least they have government provided health care.
That is purely bullshit. While the poor do not generally pay Federal Income Tax, the still pay Social Security tax, which is capped at $106,800 so the wealthy pay a far smaller percentage of their income in that tax. They also receive a larger portion of their earnings from capital gains which are only 15%. The poor are also subject to sales tax, registration taxes, phone taxes and a myriad of other taxes and fees that eat up a far greater percentage of their net worth than the rich are subjected to. There is NO ONE in this country who does not pay some sort of tax unless they never buy anything. The wealthy pay at a far lower rate than they have since the Great Depression although they use are far greater portion of the government services than anyone else. Does the average citizen ever use the courts, the patent office, oil leases, the services of the FBI, SEC, Secret Service or any other government department except maybe the Transportation Department and the Park Service?
And don't get me started on the average family in Europe. At least they have government provided health care.
It might be worth noting that the "enormous" income taxes paid by that top 50% of earners only covers about 30% of what it costs to run the country, and it looks like the poor, retired and sick are being targeted to make up the difference.
That is purely bullshit. While the poor do not generally pay Federal Income Tax, the still pay Social Security tax, which is capped at $106,800 so the wealthy pay a far smaller percentage of their income in that tax. They also receive a larger portion of their earnings from capital gains which are only 15%. The poor are also subject to sales tax, registration taxes, phone taxes and a myriad of other taxes and fees that eat up a far greater percentage of their net worth than the rich are subjected to. There is NO ONE in this country who does not pay some sort of tax unless they never buy anything. The wealthy pay at a far lower rate than they have since the Great Depression although they use are far greater portion of the government services than anyone else. Does the average citizen ever use the courts, the patent office, oil leases, the services of the FBI, SEC, Secret Service or any other government department except maybe the Transportation Department and the Park Service?
And don't get me started on the average family in Europe. At least they have government provided health care.
I read this and it's changed my view. Mexico can have CA back. Betting they can run it better.
They prefer to called (if you watch FOXNews) "job creators"
I've never been hired by a poor person. In fact I am currently employed by a very generous wealthy man, and I hold no grudges against him. Nor do I constantly envy any of his wealth or property.