Apple to pay $38 billion in US taxes on foreign cash, open new campus

(Reuters) - Apple Inc <AAPL.O> on Wednesday said it will make about $38 billion in tax payments on its overseas cash and plans to open a second U.S. campus as part of a 5-year, $30 billion U.S. investment plan.

Apple said it plans a wave of investing and hiring in the United States and will create 20,000 jobs through hiring at its existing campus and the new one. It will announce the location later this year.

A look inside the new $5B Apple campus in Cupertino:

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$5B Apple HQ in Cupertino
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$5B Apple HQ in Cupertino

The front doors to Apple Park are four stories tall and made out of glass.

Credit: YouTube/Duncan Sinfield

The entire campus is landscaped with native plants and trees.

Credit: YouTube/Duncan Sinfield

Inside those big atriums are meeting places and cafes for Apple employees to run into each other.

Credit: YouTube/Duncan Sinfield

This is Steve Jobs Theater, a 1000-seat space where the iPhone X was first launched.

Credit: YouTube/Duncan Sinfield

The fountain inside the ring has finally been filled with water.

YouTube/Duncan Sinfield

The campus can look like a golf course from above.

Credit: YouTube/Duncan Sinfield

But Apple has made a lot of effort to keep the campus environmentally friendly, not just visually green. The entire roof is covered with solar panels, for example.

Credit: YouTube/Duncan Sinfield

The campus is off limits to the public. Here are people driving by it.

Credit: YouTube/Duncan Sinfield

On the right is a visitor's center that sells exclusive Apple swag and coffee. It's the only place on campus where visitors are allowed without a pass.

Credit: YouTube/Duncan Sinfield

Scores of fruit trees have been planted inside the ring. Apple's cafes will use fruit from the campus.

Credit: YouTube/Duncan Sinfield

There's also a state-of-the-art gym on the campus and two basketball courts.

YouTube/Duncan Sinfield

The fountain inside the ring is a stunning blue color.

YouTube/Duncan Sinfield
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About a third of the new spending will be on data centers to house its iCloud, App Store and Apple Music services. The company has data centers in seven states and also on Wednesday broke ground on an expansion of its operations in Reno, Nevada, where local officials granted it tax breaks on a downtown warehouse.

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The announced tax payment was roughly in line with what analysts expected from the tax bill, which requires companies to pay a one-time tax on foreign-held earnings whether they intend to bring them back to the United States or not.

Apple has $252.3 billion in cash abroad and previously had set aside $36.3 billion in anticipation of tax payments on its foreign cash, meaning the payment would not represent a major impact on its cash flow this quarter.

Apple CEO Tim Cook:

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Tim Cook
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Tim Cook
Apple CEO Tim Cook attends the opening ceremony of the fourth World Internet Conference in Wuzhen, Zhejiang province, China, December 3, 2017. REUTERS/Aly Song
Nov 25, 2017; Auburn, AL, USA; Apple chief executive officer Tim Cook arrives for College GameDay before the game between the Auburn Tigers and the Alabama Crimson Tide at Jordan-Hare Stadium. Mandatory Credit: Christopher Hanewinckel-USA TODAY Sports
Apple CEO Tim Cook speaks at The Bloomberg Global Business Forum in New York, U.S., September 20, 2017. REUTERS/Brendan McDermid
Apple CEO Tim Cook (R) plays with an iPhone as Jonathan Ive, Apple's Chief Design Officer, looks on during a launch event in Cupertino, California, U.S. September 12, 2017. REUTERS/Stephen Lam
Apple CEO Tim Cook speaks during Commencement Exercises at Massachusetts Institute of Technology (MIT) in Cambridge, Massachusetts, U.S., June 9, 2017. REUTERS/Brian Snyder
Apple CEO Tim Cook smiles as he arrives to a product demo during the annual Apple Worldwide Developer Conference (WWDC) in San Jose, California, U.S. June 5, 2017. REUTERS/Stephen Lam
Tim Cook, CEO, speaks during Apple's annual world wide developer conference (WWDC) in San Jose, California, U.S. June 5, 2017. REUTERS/Stephen Lam
Apple CEO Tim Cook attends the China Development Forum in Beijing, China, March 18, 2017. REUTERS/Thomas Peter
Apple Inc CEO Tim Cook waves during an Apple media event in San Francisco, California, U.S. September 7, 2016. REUTERS/Beck Diefenbach
Apple Inc CEO Tim Cook makes his closing remarks during an Apple media event in San Francisco, California, U.S. September 7, 2016. REUTERS/Beck Diefenbach
Apple CEO Tim Cook speaks during an event at the Apple headquarters in Cupertino, California March 21, 2016. REUTERS/Stephen Lam
Apple Chief Executive Officer Tim Cook speaks during a event for students to learn to write computer code at the Apple store in the Manhattan borough of New York December 9, 2015. REUTERS/Carlo Allegri
Apple CEO Tim Cook speaks during the Wall Street Journal Digital Live ( WSJDLive ) conference at the Montage hotline Laguna Beach, California October 19, 2015. REUTERS/Mike Blake
Apple CEO Tim Cook introduces the new iPad Pro during an Apple media event in San Francisco, California, September 9, 2015. Reuters/Beck Diefenbach
Apple CEO Tim Cook delivers his keynote address at the Worldwide Developers Conference in San Francisco, California June 8, 2015. REUTERS/Robert Galbraith
PALO ALTO, CA - NOVEMBER 03: Apple CEO Tim Cook looks on as the new iPhone X goes on sale at an Apple Store on November 3, 2017 in Palo Alto, California. The highly anticipated iPhone X went on sale around the world today. (Photo by Justin Sullivan/Getty Images)
Tim Cook, chief executive officer of Apple, Inc., smiles as he greets customers during the opening of the new Apple Michigan Avenue store in Chicago, Illinois, U.S., on Friday, Oct. 20, 2017. The building features exterior walls made entirely of glass with four interior columns supporting a 111-by-98 foot carbon-fiber roof, designed to minimize the boundary between the city and the Chicago River. Photographer: Daniel Acker/Bloomberg via Getty Images
CHICAGO, IL - OCTOBER 20: Apple CEO Tim Cook greets guests at the grand opening of Apple's Chicago flagship store on Michigan Avenue October 20, 2017 in Chicago, Illinois. The glass-sided store sits on shore of the Chicago River in the city's downtown. (Photo by Scott Olson/Getty Images)
CHICAGO, IL - OCTOBER 20: Apple CEO Tim Cook greets guests at the grand opening of Apple's Chicago flagship store on Michigan Avenue October 20, 2017 in Chicago, Illinois. The glass-sided store sits on shore of the Chicago River in the city's downtown. (Photo by Scott Olson/Getty Images)
Tim Cook, chief executive officer of Apple Inc., speaks during the Bloomberg Global Business Forum in New York, U.S., on Wednesday, Sept. 20, 2017. The forum, hosted during UN General Assembly week, brings leaders to work together, through on-the-record main stage discussions and private bilateral and multilateral meetings, to address the most pressing economic issues facing us today. Photographer: Misha Friedman/Bloomberg via Getty Images
CUPERTINO, CA - SEPTEMBER 12: Apple CEO Tim Cook (R) and Apple chief design officer Jonathan Ive (L) look at the new Apple iPhone X during an Apple special event at the Steve Jobs Theatre on the Apple Park campus on September 12, 2017 in Cupertino, California. Apple held their first special event at the new Apple Park campus where they announced the new iPhone 8, iPhone X and the Apple Watch Series 3. (Photo by Justin Sullivan/Getty Images)
Apple CEO Tim Cook speaks during a media event at Apple's new headquarters where Apple is expected to announce a new iPhone and other products in Cupertino, California on September 12, 2017. / AFP PHOTO / Josh Edelson (Photo credit should read JOSH EDELSON/AFP/Getty Images)
SUN VALLEY, ID - JULY 12: Tim Cook, chief executive officer of Apple, attends the second day of the annual Allen & Company Sun Valley Conference, July 12, 2017 in Sun Valley, Idaho. Every July, some of the world's most wealthy and powerful businesspeople from the media, finance, technology and political spheres converge at the Sun Valley Resort for the exclusive weeklong conference. (Photo by Drew Angerer/Getty Images)
BOSTON, MA - JUNE 09: CEO of Apple Tim Cook looks on before a game between the Boston Red Sox and the Detroit Tigers at Fenway Park on June 9, 2017 in Boston, Massachusetts. (Photo by Adam Glanzman/Getty Images)
CAMBRIDGE, MA - JUNE 9: Apple CEO Tim Cook delivers the commencement address during the Massachusetts Institute of Technology Commencement at Killian Court on the MIT campus in Cambridge, MA on Jun. 9, 2017. (Photo by John Tlumacki/The Boston Globe via Getty Images)
BOSTON, MA - JUNE 9: Apple CEO Tim Cook reacts before a game between the Boston Red Sox and the Detroit Tigers on June 9, 2017 at Fenway Park in Boston, Massachusetts. (Photo by Billie Weiss/Boston Red Sox/Getty Images)
Tim Cook, chief executive officer of Apple Inc., speaks during a Bloomberg Technology television interview at the Apple Worldwide Developers Conference (WWDC) in San Jose, California, U.S., on Monday, June 5, 2017. Cook�said the company has helped U.K. officials investigate terror attacks, while reiterating his dismay over U.S. plans to quit the Paris agreement on climate change. Photographer: David Paul Morris/Bloomberg via Getty Images
SAN JOSE, CA - JUNE 05: Apple CEO Tim Cook delivers the opening keynote address the 2017 Apple Worldwide Developer Conference (WWDC) at the San Jose Convention Center on June 5, 2017 in San Jose, California. Apple CEO Tim Cook kicked off the five-day WWDC that runs through June 9. (Photo by Justin Sullivan/Getty Images)
Apple CEO Tim Cook looks on during a visit of the shopfitting company Dula that delivers tables for Apple stores worldwide in Vreden, western Germany, on February 7, 2017. / AFP / dpa / Bernd Thissen / Germany OUT (Photo credit should read BERND THISSEN/AFP/Getty Images)
CUPERTINO, CA - OCTOBER 27: Apple CEO Tim Cook smiles during a product launch event on October 27, 2016 in Cupertino, California. Apple Inc. unveiled the latest iterations of its MacBook Pro line of laptops and TV app. (Photo by Stephen Lam/Getty Images)
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Apple did not indicate how much, if any, of its cash it would actually bring back to the United States.

Apple also said it would boost its advanced manufacturing fund, which it uses to provide capital and support to suppliers such as Finisar Corp <FNSR.O> and Corning Inc <GLW.N>, from $1 billion to $5 billion. Apple said it plans to spend $55 billion with U.S.-based suppliers in 2018, up from $50 billion last year.

Apple joins Amazon.com Inc <AMZN.O> in scouting for a location for a second campus. Amazon finished taking applications from cities in October for its second campus.

 

(Reporting by Sonam Rai in Bengaluru; editing by Patrick Graham, Peter Henderson and Marguerita Choy)

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