"In short, Google is borrowing $3 billion at a yield that is just about the lowest yield in modern U.S. history. The Federal Reserve has been trying very hard to convince the world to borrow dollars, and Google is simply taking its advice. If corporate tax rates decline in the next year or so — a bet that looks more attractive almost every day — and if the economy improves and interest rates rise, Google will have executed a very profitable trifecta: It could repatriate its cash at a lower tax rate and buy back its bonds at a discount.
And even if none of this works out, Google's cost of borrowing $3 billion will only be about 2.3%, which in an historical context is not very much. And if the dollar continues to depreciate, then borrowing dollars today in order to keep cash abroad will also prove to be a profitable strategy."