Pfizer said yesterday that its board of directors had given the green light to the repatriation of an additional $8.6 billion dollars worth of foreign earnings – bringing the total sum up to a total of $28.3 billion.
The company says that it will have to pay $365 million in tax associated with this additional repatriation in the second quarter and will also record an $850 million reversal of the $2.19 billion tax charge recorded in the first quarter in relation to the original $28.3 billion repatriation, principally as a result of recent guidance issued by the US Treasury [[20/04/05a]].
Pfizer is just one of many companies repatriating foreign funds under the American Jobs Creation Act of 2004. “Through our repatriation of foreign earnings this year, we are strengthening Pfizer’s ability to pursue strategic opportunities while enhancing the company’s flexibility to invest in our R&D pipeline and new product potential in the US,” said Hank McKinnell, chairman and chief executive officer.
- Meanwhile, the world’s largest pharmaceutical company also said it would be buying back up to $5 billion of its common stock. It explained that it expects the purchases to be made from time to time in the open market or in privately negotiated transactions.