Tim Cook Defends Apple’s Offshore Cash Hoard Before Senate Hearing

tim_cook_jan_2011

Tim Cook is going to Washington to testify before a Senate committee next week, but the Apple CEO is pulling a rare move for the company and going on the offensive early by giving media interviews to explain its position.

During an interview with Politico, Cook addressed the controversy surrounding Apple’s cash hoard by explaining where its offshore cash comes from, how Apple plans to bring more manufacturing jobs back to the U.S., and why the company will push for policy change in Washington: 

“We don’t have a large presence in Washington, as you probably know, but we care deeply about public policy and believe creative policy can be a huge catalyst for a better society and a stronger economy…

I hope to make some clear recommendations, and I trust there will be receptive parties there.”

Cook also defended Apple’s conduct in regards to taxes:

I can tell you unequivocally Apple does not funnel its domestic profits overseas. We don’t do that. We pay taxes on all the products we sell in the U.S., and we pay every dollar that we owe. And so I’d like to be really clear on that.”

Apple is facing heavy pressure regarding its off-shore cash pile of about $100 billion. Apple has decided not to bring the cash into the U.S. to fund its stock buyback program, but has gone into debt with investors by selling bonds.

Even though the Senate committee is unhappy with Apple’s tax strategies, Tim Cook told Politico that the company is contributing to the country’s economic growth in a number of notable ways:

“Apple is contributing in a lot of different ways to the economy, and we’re very, very proud of it, particularly in the job-creation area and the work we do to protect our environment.”

Along with Apple’s improved environmental policies, Cook touted Apple’s plans to bring some Apple manufacturing jobs back to the U.S. Last year Apple announced that it will be manufacturing the Mac Pro in the United States. Apple will invest $100 million into the venture initially, but Cook says it will be very far reaching project:

“’We’re going very deep in this project’” Cook said, noting that not only will the final product be manufactured in the U.S., but so will many of its components.  Arizona, Texas, Illinois, Florida and Kentucky are among the states he mentioned as having parts and assembly located.”

Tim Cook’s appearance before the Senate committee is scheduled for Tuesday, May 21st.

  • MrsCleaver

    Not even sure why Tim Cook needs to explain himself to anyone but shareholders, and as far as I know they’re not complaining much. The affairs of Apple are none of Congress’ business. Surely they can work on something important just once, without sticking their beak into already-profitable commerce.

  • Jonathan Ober

    The gov’t just wants to use their Billions to pay down the Trillions we owe in debt :/

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Buster HeinBuster Hein is Cult of Mac's Senior News Editor and lives in Phoenix, Arizona. Twitter: @bst3r.

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