Amazon.com 2015 Annual Report Download - page 62

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52
The following table summarizes gross gains and gross losses realized on sales of available-for-sale marketable securities
(in millions):
Year Ended December 31,
2015 2014 2013
Realized gains $ 2 $ 8 $ 6
Realized losses 7 57
The following table summarizes the contractual maturities of our cash equivalents and marketable fixed-income
securities as of December 31, 2015 (in millions):
Amortized
Cost
Estimated
Fair Value
Due within one year $ 12,533 $ 12,531
Due after one year through five years 1,086 1,084
Due after five years through ten years 96 95
Due after ten years 169 167
Total $ 13,884 $ 13,877
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,
2015 2014
Gross property and equipment (1):
Land and buildings $ 9,770 $ 7,150
Equipment and internal-use software (2) 18,417 14,213
Other corporate assets 334 304
Construction in progress 1,532 1,063
Gross property and equipment 30,053 22,730
Total accumulated depreciation (1) 8,215 5,763
Total property and equipment, net $ 21,838 $ 16,967
___________________
(1) Excludes the original cost and accumulated depreciation of fully-depreciated assets.
(2) Includes internal-use software of $1.4 billion and $1.3 billion as of December 31, 2015 and 2014.
Depreciation expense on property and equipment was $4.9 billion, $3.6 billion, and $2.5 billion, which includes
amortization of property and equipment acquired under capital leases of $2.7 billion, $1.5 billion, and $826 million for 2015,
2014, and 2013. Gross assets recorded under capital leases were $12.0 billion and $7.9 billion as of December 31, 2015 and
2014. Accumulated depreciation associated with capital leases was $5.4 billion and $3.3 billion as of December 31, 2015 and
2014.
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
significant investment in tenant improvements. As a result, the buildings are being depreciated over the shorter of their useful
lives or the related leases’ terms. Additionally, certain build-to-suit lease arrangements and finance leases provide purchase
options. Upon occupancy, the long-term construction obligations are considered long-term finance lease obligations with
amounts payable during the next 12 months recorded as “Accrued expenses and other.” Gross assets remaining under finance
leases were $2.0 billion and $1.4 billion as of December 31, 2015 and 2014. Accumulated depreciation associated with finance
leases was $199 million and $87 million as of December 31, 2015 and 2014.