US multinational companies are holding more than $2 trillion of their cash abroad, JP Morgan wrote in a recent report. Among the S&P 500, roughly $589 billion, or 63% of their total cash, was tied in foreign countries, it said.
It makes sense for companies to leave their cash abroad because they would otherwise get taxed again on the money they bring into the US. One thing that sticks out is that tech companies make up more than half of the top 25 companies with the most cash abroad, and nearly all of the top 10.
This is partly because tech companies make a lot of sales overseas, and tend to have lower operational costs than (for instance) retailers or manufacturers, so they often keep a lot of cash on hand.
Here are the 10 US tech companies with the most cash stashed overseas…
Apple, $157.8 billion
Total cash and marketable securities: $178.0 billion
Total cash held abroad: $157.8 billion (89% of total)
Untaxed foreign earnings: $69.7 billion
Total revenue (2014): $74.5 billion
Microsoft, $92.9 billion
Total cash and marketable securities: $90.2 billion
Total cash held abroad: $82.1 billion (91% of total)
Untaxed foreign earnings: $92.9 billion
Total revenue (2014): $26.4 billion
Oracle, $40.3 billion
Total cash and marketable securities: $44.7 billion
Total cash held abroad: $40.3 billion (90% of total)
Untaxed foreign earnings: $40.3 billion
Total revenue (2014): $9.3 billion
Google, $38.7 billion
Total cash and marketable securities: $64.4 billion
Total cash held abroad: $38.7 billion (60% of total)
Untaxed foreign earnings: $47.4 billion
Total revenue (2014): $18.1 billion
Qualcomm, $27.5 billion
Total cash and marketable securities: $31.6 billion
Total cash held abroad: $27.5 billion (87% of total)
Untaxed foreign earnings: $27.5 billion
Total revenue (2014): $7.1 billion
HP, $15.1 billion
Total cash and marketable securities: $15.1 billion
Total cash held abroad: $15.1 billion (100% of total)
Untaxed foreign earnings: $42.9 billion
Total revenue (2014): $26.8 billion
eBay, $10.1 billion
Total cash and marketable securities: $14.6 billion
Total cash held abroad: $10.1 billion (69% of total)
Untaxed foreign earnings: $7.9 billion
Total revenue (2014): $4.9 billion
Intel, $9.7 billion
Total cash and marketable securities: $12.0 billion
Total cash held abroad: $9.7 billion (81% of total)
Untaxed foreign earnings: $23.3 billion
Total revenue (2014): $14.7 billion
EMC, $9.7 billion
Total cash and marketable securities: $15.4 billion
Total cash held abroad: $9.7 billion (63% of total)
Untaxed foreign earnings: $10.2 billion
Total revenue (2014): $24.4 billion
Priceline, $6.9 billion
Total cash and marketable securities: $9.0 billion
Total cash held abroad: $6.9 billion (77% of total)
Untaxed foreign earnings: $7.3 billion
Total revenue (2014): $8.4 billion
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