That's because the cost of borrowing money is a lot cheaper than the tax hit that the company will incur if they repatriated cash back to the US. In most cases

That's because the cost of borrowing money is a lot cheaper than the tax hit that the company will incur if they repatriated cash back to the US. In most cases the tax rate is as high as 35%[1]. Microsoft, for example, reported that it would owe $19.4 billion if it repatriated its $60.8 billion in offshore holdings[2]. using the same numbers, Apple will have to pay $35 billion in taxes if they repatriated $100 billion in offshore profits earned (and already taxed) in foreign countries. [1]http://appleinsider.com/articles/11/02/16/apple_lobbies_for_offshore_tax_holiday_to_bring_cash_to_us http://appleinsider.com/articles/11/02/16/apple_lobbies_for_... [2]http://www.bloomberg.com/news/2013-03-08/offshore-cash-hoard-expands-by-183-billion-at-companies.html http://www.bloomberg.com/news/2013-03-08/offshore-cash-hoard... Companies do this all the time. "Google Borrowing $3 Billion In First Ever Bond Offer" http://www.businessinsider.com/google-bond-offering-2011-5 http://www.businessinsider.com/google-bond-offering-2011-5