Amazon.com 2001 Annual Report Download - page 65

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table summarizes contractual maturities of the Company’s cash equivalent and marketable
fixed-income securities as of December 31, 2001:
Amortized
Cost
Estimated
Fair Value
(in thousands)
Due within one year .............................................. $454,190 $449,391
Due after one year through three years ................................ 150,786 151,253
Asset-backed and agency securities with various maturities ............... 231,912 232,821
$836,888 $833,465
Gross gains of $9 million, $7 million, and $7 million and gross losses of $32 million, $11 million and
$15 million were realized on sales of available-for-sale marketable securities for the years ended December 31,
2001, 2000, and 1999 respectively.
The Company has pledged a portion of its marketable securities as collateral for stand-by letters of credit
that guarantee certain of its contractual obligations, a majority of which relates to property leases; the swap
agreement that hedges foreign-exchange rate risk on a portion of its 6.875% PEACS; and some of its real estate
lease agreements. See Note 7 and Note 8 of these “Notes to Consolidated Financial Statements.”
Note 3—FIXED ASSETS
Fixed assets, at cost, consist of the following:
December 31,
2001 2000
(in thousands)
Computers, equipment and software ................................. $205,687 $262,103
Internal software, website and content development .................... 62,754 34,358
Leasehold improvements .......................................... 102,412 107,367
Leased assets ................................................... 42,444 51,969
Construction in progress .......................................... 24,846 25,467
438,143 481,264
Less accumulated depreciation ..................................... (152,443) (99,244)
Less accumulated amortization on leased assets ........................ (13,949) (15,604)
Fixed assets, net ............................................. $271,751 $366,416
Fixed assets purchased under capital leases consist of computers, equipment and software.
Depreciation expense on fixed assets was $83 million, $83 million and $35 million, which includes
amortization of fixed assets acquired under capital lease obligations of $9 million, $11 million and $6 million, for
the years ended December 31, 2001, 2000 and 1999, respectively.
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