{ "docId": "019dd923-622b-71dc-a6da-df4a74be41a3", "docSlug": "d4c64e242528", "documentTitle": "Apple Inc. (AAPL)", "authorId": "04_Greenlight_Capital", "authorName": "David Einhorn", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2013-02-21 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 45, "pageCount": 55, "prevPage": 44, "nextPage": 46, "slideType": "propose_solution", "function": "propose_solution", "density": "overcrowded", "nDataPoints": 0, "notes": "Includes a cartoon illustration of a person tucking a safe into bed, symbolizing hoarding cash.", "elementsJson": [ "headline_text", "bullet_list", "photo" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6da-df4a74be41a3/45", "deckHref": "/decks/019dd923-622b-71dc-a6da-df4a74be41a3", "deckJsonHref": "/decks/019dd923-622b-71dc-a6da-df4a74be41a3.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6da-df4a74be41a3#slide-45", "components": [ { "bbox": null, "kind": "callout", "text": "The important benefit of iPrefs is they don't interfere with whatever Apple's business plan is.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f40-73bb-a5fd-2dad77134a3a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.25, "x": 0.55, "y": 0.2 }, "kind": "image", "text": "Cartoon of a person tucking a safe into bed", "attrs": null, "subkind": "illustration", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6be5514f-1762-4126-b4e6-809334c9c3ed", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.25, "x": 0.2, "y": 0.2 }, "kind": "list", "text": "Complete strategic flexibility; No repatriation; Lower cost of capital; No debt; No default risk; No refinancing risk; No balance sheet risk", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b5f4f066-6956-4ac8-9a5b-3bd439eecbac", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.7, "x": 0.15, "y": 0.64 }, "kind": "paragraph", "text": "If Apple wants to keep its cash overseas, it can still do that.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0efbb151-4a3c-4754-a029-3da492f25c81", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.7, "x": 0.15, "y": 0.58 }, "kind": "paragraph", "text": "We don't know what Apple's plans are, but iPrefs don't interfere with using the existing cash hoard. If they want to do acquisitions, they can do acquisitions.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1f65970c-342d-4de1-8919-5c76c1dffc48", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.7, "x": 0.15, "y": 0.68 }, "kind": "paragraph", "text": "If Apple wants to make one-time or recurring dividends or share buybacks, it can still do those things.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "634f4a24-6e7b-42eb-8387-7e6c13df51ef", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.7, "x": 0.15, "y": 0.72 }, "kind": "paragraph", "text": "iPrefs will lower Apple's cost of capital, thereby reducing the opportunity cost of holding cash and increasing Apple's financial flexibility.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "85863e09-3ac9-4971-9280-da3b38f725e6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.7, "x": 0.15, "y": 0.48 }, "kind": "paragraph", "text": "The important benefit of iPrefs is they don't interfere with whatever Apple's business plan is. Because the cash doesn't go out the door, Apple is free to invest it. Some have speculated whether the money is for a large acquisition or a series of acquisitions.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9fff9bce-029d-4703-95cc-28d5491ad067", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.7, "x": 0.15, "y": 0.78 }, "kind": "paragraph", "text": "We know that the company is debt averse. iPrefs are a form of equity, not debt. They have no maturity and no refinancing risk or default risk, so the business itself is never put at risk.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a2707b23-2767-4f79-bef2-cac1eb56e8fa", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.3, "x": 0.2, "y": 0.15 }, "kind": "title", "text": "Apple Keeps the Cash", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8ba55ba0-80c5-435d-a6d3-f518e3965d53", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 45, "from": 31, "beatId": "30bfbfe2-371f-4314-9307-1b21ce7851e9", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Solution", "beatSlug": "problem-agitate-solution-solution-provide-relief", "evidence": "The document proposes iPrefs as a solution to unlock shareholder value", "position": 2, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }