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If a company earns $1 Million in net profit (let's say all cash, which is not entirely realistic), it can do one of three things with it:

• Invest it back in the company (by buying more assets to generate future profits or paying off debt to reduce interest expense)
• Distribute it to shareholders (dividends, stock buyback)
• Do nothing (keep it as cash)

None of those change the fact that it is still "profit" - they all just affect the balance sheet, not the income statement:

• Investing cash by buying assets trades one asset for another (no revenue/expense)
• Investing cash by paying off debt decreases assets and liabilities (no revenue/expense)
• Distributing cash to shareholders by buying stock or paying dividends decreases assets and equity (no revenue/expense)

Note that when a company issues dividends, it reduces its per-share value since cash is leaving the door with nothing in return.

In Apple's case, since a significant amount of its profit was earned in other countries (where it was not taxed by the US), it would pay a significant amount in US corporate tax by bringing it back to the US by investing it or paying dividends. They are betting that at some point, the US will change the rules to make it more favorable to "repatriate" the money and reduce their tax significantly.

If a company earns $1 Million in net profit (let's say all cash, which is not entirely realistic), it can do one of three things with it:

• Invest it back in the company (by buying more assets to generate future profits or paying off debt to reduce interest expense)
• Distribute it to shareholders (dividends, stock buyback)
• Do nothing (keep it as cash)

On the balance sheet - profits that have not been distributed show up as "retained earnings". When dividends are paid, Retained Earnings and cash are reduced. None of the other options change the fact that it is still "profit" - they all just affect the balance sheet, not the income statement:

• Investing cash by buying assets trades one asset for another (no revenue/expense)
• Investing cash by paying off debt decreases assets and liabilities (no revenue/expense)
• Distributing cash to shareholders by buying stock or paying dividends decreases assets and equity (no revenue/expense)

Note that when a company issues dividends, it reduces its per-share value since cash is leaving the door with nothing in return.

In Apple's case, since a significant amount of its profit was earned in other countries (where it was not taxed by the US), it would pay a significant amount in US corporate tax by bringing it back to the US by investing it or paying dividends. They are betting that at some point, the US will change the rules to make it more favorable to "repatriate" the money and reduce their tax significantly.

If a company earns $1 Million in net profit (let's say all cash, which is not entirely realistic), it can do one of three things with it:

• Invest it back in the company (by buying more assets to generate future profits or paying off debt to reduce interest expense)
• Return it to shareholders (dividends, stock buyback)
• Do nothing (keep it as cash)

None of those change the fact that it is still "profit" - they all just affect the balance sheet, not the income statement.

To be fair to Apple, since a significant amount of its profit was earned in other countries (where it was not taxed by the US), it would pay a significant amount in tax by bringing it back to the US to invest it or pay dividends. They are betting that at some point, the US will change the rules to make it more favorable to "repatriate" the money and give them a significant amount of tax savings.

If a company earns $1 Million in net profit (let's say all cash, which is not entirely realistic), it can do one of three things with it:

• Invest it back in the company (by buying more assets to generate future profits or paying off debt to reduce interest expense)
• Distribute it to shareholders (dividends, stock buyback)
• Do nothing (keep it as cash)

None of those change the fact that it is still "profit" - they all just affect the balance sheet, not the income statement:

• Investing cash by buying assets trades one asset for another (no revenue/expense)
• Investing cash by paying off debt decreases assets and liabilities (no revenue/expense)
• Distributing cash to shareholders by buying stock or paying dividends decreases assets and equity (no revenue/expense)

Note that when a company issues dividends, it reduces its per-share value since cash is leaving the door with nothing in return.

In Apple's case, since a significant amount of its profit was earned in other countries (where it was not taxed by the US), it would pay a significant amount in US corporate tax by bringing it back to the US by investing it or paying dividends. They are betting that at some point, the US will change the rules to make it more favorable to "repatriate" the money and reduce their tax significantly.

I'm not sure what you mean by "un-become" profits? If a company earns $1 Million in net profit (let's say all cash, which is not entirely realistic), it can do one of three things with it:

• Invest it back in the company (by buying more assets to generate future profits or paying off debt to reduce interest expense)
• Return it to shareholders (dividends, stock buyback)
• Do nothing (keep it as cash)

None of those change the fact that it is still "profit" - they all just affect the balance sheet, not the income statement.

To be fair to Apple, since a significant amount of its profit was earned in other countries (where it was not taxed by the US), it would pay a significant amount in tax by bringing it back to the US to invest it or pay dividends. They are betting that at some point, the US will change the rules to make it more favorable to "repatriate" the money and give them a significant amount of tax savings.

If a company earns $1 Million in net profit (let's say all cash, which is not entirely realistic), it can do one of three things with it:

• Invest it back in the company (by buying more assets to generate future profits or paying off debt to reduce interest expense)
• Return it to shareholders (dividends, stock buyback)
• Do nothing (keep it as cash)

None of those change the fact that it is still "profit" - they all just affect the balance sheet, not the income statement.

To be fair to Apple, since a significant amount of its profit was earned in other countries (where it was not taxed by the US), it would pay a significant amount in tax by bringing it back to the US to invest it or pay dividends. They are betting that at some point, the US will change the rules to make it more favorable to "repatriate" the money and give them a significant amount of tax savings.