Amazon.com 2005 Annual Report Download - page 74

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table summarizes contractual maturities of our cash equivalent and marketable fixed-income
securities as of December 31, 2005 (in millions):
Amortized
Cost
Estimated
Fair Value
Due within one year .............................................. $ 834 $ 808
Due after one year through three years ............................... 345 377
Asset-backed and agency securities with various maturities ............... 748 713
$1,927 $1,898
Gross gains of $7 million, $12 million, and $17 million and gross losses of $12 million, $1 million and $1
million were realized on sales of available-for-sale marketable securities, including Euro-denominated securities,
for 2005, 2004, and 2003.
We are required to pledge a portion of our cash equivalents or marketable securities as collateral for standby
letters of credit that guarantee certain of our contractual obligations, a line of credit, and real estate lease
agreements. See “Note 5—Commitments and Contingencies.”
Note 3—FIXED ASSETS
Fixed assets, at cost, consist of the following (in millions):
December 31,
2005 2004
Gross Fixed Assets (1):
Fulfillment and customer service (2) ............................... $309 $263
Technology infrastructure ....................................... 69 38
Internal-use software, content, and website development ............... 138 79
Other corporate assets .......................................... 55 43
Gross fixed assets ......................................... 571 423
Accumulated Depreciation (1):
Fulfillment and customer service ................................. 123 106
Technology infrastructure ....................................... 27 15
Internal-use software, content, and website development ............... 51 32
Other corporate assets .......................................... 22 24
Total accumulated depreciation ............................... 223 177
Total fixed assets, net .................................. $348 $246
(1) Excludes the original cost and accumulated depreciation of fully-depreciated assets which were $275
million and $216 million at December 31, 2005 and 2004.
(2) Includes our DVD rental library.
Depreciation expense on fixed assets was $113 million, $75 million, and $70 million, which includes
amortization of fixed assets acquired under capital lease obligations of $4 million, $5 million and $7 million for
2005, 2004, and 2003. Gross assets remaining under capital leases were $8 million and $4 million at
December 31, 2005 and 2004. Accumulated depreciation associated with capital leases was $2 million and $2
million at December 31, 2005 and 2004.
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