Monday, November 5, 2012
Apple Reports 2012 Earnings
Apple reported net income of $41.7 billion in fiscal 2012. That was a 61% increase over 2011 earnings. Foreign earnings made an increasing contribution to Apple's profits. It uses a well known legal tool to reduce its taxes on foreign income. Profits are taken in Ireland and the Netherlands and routed to the Caribbean. It paid less than 2% on its foreign earnings. Apple reduces its total reported profits by taking a charge for taxes that would be due in the US if the earnings were repatriated. That amounts to about $10.5 billion of earnings that it has not reported over the last three years. There have not been many companies, the size of Apple, that have been able to report a 61% increase in earnings over year ago earnings that had also grown substantially.