Apple’s foreign profits are funneled through different countries to reside in a country where there is no or little tax on profits. They don’t pay taxes in the US untill the money is repatriated to the US, but they do mark a portion of the money as being taxed in the US and take that off their books. This means that there are lower profit figures than they actually have allthough the money is still in foreign accounts.

How Apple's phantom taxes hide billions in profit.