Cisco CEO: Repatriation Was The Most Important Part of Tax Reform

Cisco Systems Chief Executive Officer Chuck Robbins said repatriation of profits abroad is the most important part of the recently approved tax reform.

"We are very pleased that the tax reform is approved," Robbins told Yahoo Finance's Andy Serwer and Jen Rogers at the World Economic Forum in Davos. "It was amazing how fast that happened, which gives me some optimism as to how quickly we could overcome some of the challenges we are facing right now, but I think the repatriation is the most important part. "

Cisco has one of the largest accumulations of cash abroad. Of the $ 70.5 billion in cash and marketable securities of Cisco, about $ 67.5 billion, or 95.8%, is held abroad, according to data compiled by Bloomberg.

Under the new tax law, companies with foreign liquidity will pay an effective tax rate of 15.5% and an effective tax rate of 8% on illiquid foreign assets.

Cisco is expected to launch its quarterly results in mid-February, where the administration will discuss its plans for what it will do with its capital after the tax reform.

"We will continue to execute on our capital return strategy, we will continue to analyze strategic mergers and acquisitions, we will see investments in R & D. We will see investments in our people, and we are looking at a lot of other things right now. And we'll probably talk more about it in a few weeks, "said Robbins.

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