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.