Statement By Apple On Returning Excess Cash To Shareholders – [PRESS RELEASE]

Statement By Apple On Returning Excess Cash To Shareholders – [PRESS RELEASE]


Following an announced commitment it made with its shareholders to return $45 Billion of its extra operating balance, (which the company notes it doesn’t require to run its daily operations), Apple yesterday issued a statement (via its PR section) in which the firm outlined its continued plans to return all of this cash to shareholders going forward.

“By early last year, Apple’s cash balance had built to a point beyond what we needed to run our business and maintain flexibility to take advantage of strategic opportunities, so we announced a plan to return $45 billion to shareholders over three years,” the company wrote. “As of next week we will have executed $10 Billion of that plan,” the firm concluded.

News that Apple is continually committed to ensuring its shareholders get what they are entitled to, follows just days after the company’s rival, Dell, Inc, announced it would sell itself to shareholders for $24.4 Billion, going private as a result and seeing shareholders bag $13.65 per share.

Full press release follows.


Press Release

Statement by Apple

By early last year, Apple’s cash balance had built to a point beyond what we needed to run our business and maintain flexibility to take advantage of strategic opportunities, so we announced a plan to return $45 billion to shareholders over three years. As of next week we will have executed $10 billion of that plan.

We find ourselves in the fortunate position of continuing to generate large amounts of cash, including $23 billion in cash flow from operations in the last quarter alone.

Apple’s management team and Board of Directors have been in active discussions about returning additional cash to shareholders. As part of our review, we will thoroughly evaluate Greenlight Capital’s current proposal to issue some form of preferred stock. We welcome Greenlight’s views and the views of all of our shareholders.

As a part of our efforts to further enhance corporate governance and serve our shareholders’ best interests, Proposal #2 in our proxy includes some recommended changes to our articles of incorporation. These changes were recommended independently of Greenlight’s proposal and would not preclude Apple from adopting their concept. Contrary to Greenlight’s statements, adoption of Proposal #2 would not prevent the issuance of preferred stock. Currently, Apple’s articles of incorporation provide for the issuance of “blank check” preferred stock by the Board of Directors without shareholder approval. If Proposal #2 is adopted, our shareholders would have the right to approve the issuance of preferred stock. As such, Proposal #2 has the support of many of our shareholders.

We remain committed to having an ongoing dialogue with our shareholders to get perspectives around return of capital and driving shareholder value.