Apple Expands Capital Return Program to Over $130 Billion
April 23 2014 - 4:30PM
Business Wire
Board of Directors also Approves Seven-for-One Stock
Split
Apple® today announced that its Board of Directors has
authorized another significant increase to the Company’s program to
return capital to shareholders. The Company expects to utilize a
total of over $130 billion of cash under the expanded program by
the end of calendar 2015.
As part of the program, the Board has increased its share
repurchase authorization to $90 billion from the $60 billion level
announced last year. The Company expects to continue to utilize
about $1 billion annually to net-share-settle vesting restricted
stock units.
Additionally, the Board has approved an increase to the
Company’s quarterly dividend of approximately 8 percent and has
declared a dividend of $3.29 per common share, payable on May 15,
2014 to shareholders of record as of the close of business on May
12, 2014. The Company also plans to increase its dividend on an
annual basis. With annual payments of $11 billion, Apple is among
the largest dividend payers in the world.
From August 2012 through March 2014, Apple has spent $66 billion
in cash on its capital return program.
To assist in funding the program, the Company expects to access
the public debt markets during 2014, both domestically and
internationally, for an amount of term debt similar to what the
Company raised during 2013. The management team and the Board of
Directors will continue to review each element of the capital
return program regularly.
“We are announcing a significant increase to our capital return
program,” said Tim Cook, Apple’s CEO. “We’re confident in Apple’s
future and see tremendous value in Apple’s stock, so we’re
continuing to allocate the majority of our program to share
repurchases. We’re also happy to be increasing our dividend for the
second time in less than two years.”
The Board of Directors has also announced a seven-for-one stock
split. Each Apple shareholder of record at the close of business on
June 2, 2014 will receive six additional shares for every share
held on the record date, and trading will begin on a split-adjusted
basis on June 9, 2014.
This press release contains forward-looking statements including
without limitation those regarding future business outlook and
plans for dividends, share repurchases, and public debt issuance.
These statements involve risks and uncertainties, and actual
results may differ. Risks and uncertainties include without
limitation the effect of competitive and economic factors, and the
Company’s reaction to those factors, on consumer and business
buying decisions with respect to the Company’s products; continued
competitive pressures in the marketplace; the ability of the
Company to deliver to the marketplace and stimulate customer demand
for new programs, products, and technological innovations on a
timely basis; the effect that product introductions and
transitions, changes in product pricing or mix, and/or increases in
component costs could have on the Company’s gross margin; the
inventory risk associated with the Company’s need to order or
commit to order product components in advance of customer orders;
the continued availability on acceptable terms, or at all, of
certain components and services essential to the Company’s business
currently obtained by the Company from sole or limited sources; the
effect that the Company’s dependency on manufacturing and logistics
services provided by third parties may have on the quality,
quantity or cost of products manufactured or services rendered;
risks associated with the Company’s international operations; the
Company’s reliance on third-party intellectual property and digital
content; the potential impact of a finding that the Company has
infringed on the intellectual property rights of others; the
Company’s dependency on the performance of distributors, carriers
and other resellers of the Company’s products; the effect that
product and service quality problems could have on the Company’s
sales and operating profits; the continued service and availability
of key executives and employees; war, terrorism, public health
issues, natural disasters, and other circumstances that could
disrupt supply, delivery, or demand of products; and unfavorable
results of other legal proceedings. More information on potential
factors that could affect the Company’s financial results is
included from time to time in the “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” sections of the Company’s public reports filed with the
SEC, including the Company’s Form 10-K for the fiscal year ended
September 28, 2013, its Form 10-Q for the quarter ended December
28, 2013, and its Form 10-Q for the quarter ended March 29, 2014 to
be filed with the SEC. The Company assumes no obligation to update
any forward-looking statements or information, which speak as of
their respective dates.
Apple designs Macs, the best personal computers in the world,
along with OS X, iLife, iWork and professional software. Apple
leads the digital music revolution with its iPods and iTunes online
store. Apple has reinvented the mobile phone with its revolutionary
iPhone and App Store, and is defining the future of mobile media
and computing devices with iPad.
NOTE TO EDITORS: For additional information visit Apple’s PR
website (www.apple.com/pr), or call Apple’s Media Helpline at (408)
974-2042.
© 2014 Apple Inc. All rights reserved. Apple, the Apple logo,
Mac, Mac OS and Macintosh are trademarks of Apple. Other company
and product names may be trademarks of their respective owners.
ApplePress:Steve Dowling,
408-974-1896dowling@apple.comorInvestor Relations:Nancy Paxton,
408-974-5420paxton1@apple.comJoan Hoover,
408-974-4570hoover1@apple.com
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