Apple is sitting on $40.4 billion in earnings overseas. The U.S. Senate wants to know what the company plans to do with it.
Tim Cook, Apple’s chief executive officer, will testify at a Congressional hearing on May 21, a person familiar with the inquiry told Bloomberg News. But Cook is already talking. He gave an interview to Politico, telling the Washington online news outlet, “Apple does not funnel its domestic profits overseas.” In other words, the cash piling up around the world is from overseas consumers buying its gadgets.
For some context on Apple’s cash “problem,” the profits the company plans to permanently reinvest overseas has grown from $12.3 billion in 2010 to $40.4 billion last year. Last year, Apple increased its overseas cash pile by $17 billion, more than any other company, according to data compiled by Bloomberg. Microsoft, which has also been a Senate target for its offshore tax practices, grew its pile by $16 billion.
Apple ranks No. 10 in terms of overall cash hoarders, behind Microsoft, International Business Machines and Cisco Systems. Watch the clip from Bloomberg TV’s “Off the Charts” for a deeper dive into Apple’s pool of cash outside the U.S.