Amazon.com 2013 Annual Report Download - page 59

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48
The following table summarizes gross gains and gross losses realized on sales of available-for-sale marketable securities
(in millions):
Year Ended December 31,
2013 2012 2011
Realized gains $ 6 $ 20 $ 15
Realized losses (7) 10 11
The following table summarizes the contractual maturities of our cash equivalent and marketable fixed income securities
as of December 31, 2013 (in millions):
Amortized
Cost Estimated
Fair Value
Due within one year $ 7,226 $ 7,227
Due after one year through five years 2,115 2,118
Due after five years through ten years 133 132
Due after ten years 261 259
$ 9,735 $ 9,736
Actual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions.
Note 3—PROPERTY AND EQUIPMENT
Property and equipment, at cost, consisted of the following (in millions):
December 31,
2013 2012
Gross property and equipment (1):
Land and buildings $ 4,584 $ 2,966
Equipment and internal-use software (2) 9,274 6,228
Other corporate assets 231 174
Construction in progress 720 214
Gross property and equipment 14,809 9,582
Total accumulated depreciation (1) 3,860 2,522
Total property and equipment, net $ 10,949 $ 7,060
___________________
(1) Excludes the original cost and accumulated depreciation of fully-depreciated assets.
(2) Includes internal-use software of $1.1 billion and $866 million as of December 31, 2013 and 2012.
In December 2012, we acquired our corporate headquarters for $1.2 billion consisting of land and 11 buildings that were
previously accounted for as financing leases. The acquired building assets will be depreciated over their estimated useful lives
of 40 years. We also acquired three city blocks of land for the expansion of our corporate headquarters for approximately $210
million.
Depreciation expense on property and equipment was $2.5 billion, $1.7 billion, and $1.0 billion, which includes
amortization of property and equipment acquired under capital lease obligations of $826 million, $510 million, and $335
million for 2013, 2012, and 2011. Gross assets remaining under capital leases were $4.2 billion and $2.3 billion as of
December 31, 2013 and 2012. Accumulated depreciation associated with capital leases was $1.9 billion and $1.1 billion as of
December 31, 2013 and 2012. Cash paid for interest on capital leases was $41 million, $51 million, and $44 million for 2013,
2012, and 2011.
We capitalize construction in progress and record a corresponding long-term liability for build-to-suit lease agreements
where we are considered the owner, for accounting purposes, during the construction period. For buildings under build-to-suit
lease arrangements where we have taken occupancy, which do not qualify for sales recognition under the sale-leaseback
accounting guidance, we determined that we continue to be the deemed owner of these buildings. This is principally due to our