Apple plans to reduce $163B cash holdings after GOP tax law

Apple plans to reduce $163B cash holdings after GOP tax law
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Apple intends to reduce its large cash holdings of $163 billion to "approximately zero" following passage of the Republican tax-reform plan.

Apple Chief Financial Officer Luca Maestri declined to offer specifics but said the process could include using the holdings to buy new companies, or offer dividends and stock buybacks, in an interview with the Financial Times.

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“Our target over time is to take that $163 billion down to approximately zero,” Maestri said. “All that cash will be deployed for capital allocation.”

The tax law signed by President TrumpDonald John TrumpTrump's top adviser on Asia to serve as deputy national security adviser United Auto Workers strike against GM poised to head into eighth day Trump doubles down on call to investigate Biden after whistleblower complaint: 'That's the real story' MORE allows companies to bring back their foreign profits at a significantly discounted tax rate.

Apple previously gave employees a $2,500 bonus in restricted stock after the law passed late last year. 

The company, which has one of the largest overseas cash reserves, is set to be one of the biggest beneficiaries of the new law.