News for hackers. Stuff that matters.

A comment on Microsoft announces quarterly dividend increase and share repurchase program. Parent comment

Re:Microsoft announces quarterly dividend increase and share... by jcampbell1 on Tuesday September 17, 2013 @09:20PM (#6402890)
Apple has $140B of cash/near-cash. It just get's bucketed as long term investments because of GAAP rules.
[ Parent | on HN ]
Re:Microsoft announces quarterly dividend increase and share... by preempalver on Tuesday September 17, 2013 @09:34PM (#6402921)
Apple also has $15B of MBS (mortgage backed securities) on its books. Near cash it is not. GAAP is correct.
[ Parent | on HN ]
Re:Microsoft announces quarterly dividend increase and share... by jcampbell1 on Tuesday September 17, 2013 @10:11PM (#6403037)
I agree with the GAAP rules, but the GAAP rules require < 90 day instruments. The complexity of rolling $140B every 90 days is insane. You are going to have days where there just isn't enough liquidity.

They are basically managing $100B in house rather than getting screwed by banks every 90 days. GAAP is right, Apple is also right, but saying they only have $40B in cash, is very misleading. They could return $100B to shareholders in 6 months with ease.

[ Parent | on HN ]