There is a way for Symantec to return more cash:
- Symantec has nearly $900 million in US cash and generates more than half its cash in the US.
- Symantec could borrow for next to nothing in the US, considering that it has the cash overseas. If there is a repatriation holiday anytime in the future they could net this out.
- This does not explain why Symantec refuses to make a commitment to shareholders to at least continue repurchasing shares at the same pace.
- I would even argue (and I know this is an unpopular view) that it pays to repatriate the cash and pay the taxes. If an item that was worth $1 was selling for 50 cents, it would make sense to pay a 20% tax to purchase that item. A rational person would not avoid buying that item in order to save on taxes. By the same token given how undervalued Symantec is it would make sense to repatriate money to repurchase shares. This is very unlikely.