Amazon.com 2005 Annual Report Download - page 28

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We May Not Be Able to Adapt Quickly Enough to Changing Customer Requirements and Industry
Standards
Technology in the e-commerce industry changes rapidly. We may not be able to adapt quickly enough to
changing customer requirements and preferences and industry standards. Competitors often introduce new
products and services with new technologies. These changes and the emergence of new industry standards and
practices could render our existing websites and proprietary technology obsolete.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
We do not own any real estate. As of December 31, 2005, we operated the following facilities throughout
the world:
Description of Use Primary Locations Square Footage (i)
Operating
Segments
Lease
Expirations (ii)
(in thousands)
Corporate office facilities California; Washington 1,000 North America
From 2006
through 2011
Other corporate office
facilities, including
development centers
China; France; Germany;
India; Japan; Luxembourg;
United Kingdom 300 International
From 2006
through 2011
Sub-total 1,300
Fulfillment and warehouse
operations (iii)
Arizona; Delaware; Kansas;
Kentucky; Nevada;
Pennsylvania; Texas 7,560 North America
From 2006
through 2014
Fulfillment and warehouse
operations
China; France; Germany;
Japan; United Kingdom 2,620 International
From 2006
through 2025
Sub-total 10,180
Customer service and data
centers
North Dakota; Virginia;
Washington; West Virginia 370 North America
From 2006
through 2021
Customer service and data
centers
China; Germany; India;
Ireland; Japan; United
Kingdom 70 International
From 2008
through 2025
Sub-total 440
Total 11,920
(i) Excludes sub-leased space.
(ii) Most leases expiring in 2006 have renewal features at our option.
(iii) Excludes a facility operated under an outsourced arrangement in Canada.
We believe our properties are suitable and adequate for our present needs, and we periodically evaluate
whether additional facilities are necessary.
20