Amazon.com (AMZN)

General and Administrative

The increase in general and administrative costs in absolute dollars in 2009 compared to 2008 and 2007 is primarily due to increases in payroll and related expenses, and professional service fees.

General and Administrative

General and administrative expenses consist of payroll and related expenses for employees involved in general corporate functions, including accounting, finance, tax, legal, and human relations, among others; costs associated with use by these functions of facilities and equipment, such as depreciation expense and rent; professional fees and litigation costs; and other general corporate costs.

General and Administrative

The increase in general and administrative costs in absolute dollars in Q1 2009 compared to the comparable prior year period is primarily due to increases in payroll and related expenses, and professional service fees.

General and Administrative

The increase in spending in general and administrative in 2008 compared to 2007 and 2006 is primarily due to increases in payroll and related expenses, and professional service fees.

General and Administrative

General and Administrative

General and administrative expenses consist of payroll and related expenses for employees involved in general corporate functions, including accounting, finance, tax, legal, and human relations, among others; costs associated with use by these functions of facilities and equipment, such as depreciation expense and rent; professional fees and litigation costs; and other general corporate costs.

General and Administrative

General and administrative costs increased in absolute dollars in Q3 2008 and for the nine months ended September 30, 2008 compared to the comparable prior year periods primarily due to increases in professional services and payroll and related expenses.

General and Administrative

General and administrative costs increased in absolute dollars in Q2 2008 and for the six months ended June 30, 2008 compared to the comparable prior year periods primarily due to increases in payroll and related expenses.

General and Administrative

General and administrative costs increased in absolute dollars in Q1 2008 compared to the comparable prior year period primarily due to increases in payroll and related expenses.

General and Administrative

General and Administrative

General and administrative expenses consist of payroll and related expenses for employees involved in general corporate functions, including accounting, finance, tax, legal, and human relations, among others; costs associated with use by these functions of facilities and equipment, such as depreciation expense and rent; professional fees and litigation costs; and other general corporate costs.

General and Administrative

General and administrative costs during Q3 2007 were relatively flat compared to Q3 2006. The increase in general and administrative costs for the nine months ended September 30, 2007 compared to the comparable prior year period is primarily due to increases in professional service fees and payroll and related expenses.

General and Administrative

The increase in general and administrative costs in Q2 2007 and the six months ended June 30, 2007 compared to comparable prior year periods is primarily due to increases in professional service fees and payroll and related expenses.

General and Administrative

The increase in general and administrative costs in Q1 2007 compared to Q1 2006 is primarily due to increases in payroll and related expenses.

General and Administrative

General and administrative expenses consist of payroll and related expenses for employees involved in general corporate functions, including accounting, finance, tax, legal, and human relations, among others; costs associated with use by these functions of facilities and equipment, such as depreciation expense and rent; professional fees and litigation costs; and other general corporate costs.

General and Administrative

The increase in general and administrative costs in Q3 2006 and the nine months ended September 30, 2006, compared to the comparable prior year periods, is primarily due to increases in payroll and related expenses. Q3 2005 also included a $12 million credit for actual and expected reimbursement by an insurer of certain legal costs previously incurred by us. General and administrative includes stock-based compensation of $5 million and $6 million for Q3 2006 and Q3 2005, and $12 million and $17 million for the nine months ended September 30, 2006 and 2005.

General and Administrative

General and Administrative

The increase in general and administrative costs in Q2 2006 and the six months ended June 30, 2006 compared to the comparable prior year periods, is primarily due to increases in payroll and related expenses. Additionally, in Q1 2005 we recorded a charge of $8 million related to possible settlements of outstanding litigation, and in Q2 2005 the favorable resolution of one of these matters resulted in a $3 million expense reduction. General and administrative includes stock-based compensation of $6 million for both Q2 2006 and Q2 2005, and $6 million and $11 million for the six months ended June 30, 2006 and 2005. We expect absolute amounts spent in general and administrative to increase over time.

General and Administrative

General and Administrative

The decrease in general and administrative costs in Q1 2006 compared to Q1 2005 is primarily due to the effect of an $8 million charge related to litigation matters in Q1 2005, offset partially by increases in payroll and related expenses. General and administrative includes stock-based compensation of $4 million for Q1 2005. Stock-based compensation included in general and administrative was insignificant for Q1 2006. We expect absolute amounts spent in general and administrative to increase over time.

General and Administrative

General and Administrative

General and administrative expenses consist of payroll and related expenses for employees involved in general corporate functions, including accounting, finance, tax, legal, and human relations, among others; costs associated with use by these functions of facilities and equipment, such as depreciation expense and rent; professional fees and litigation costs; and other general corporate costs.

General and Administrative

General and Administrative

The increase in spending in general and administrative in Q3 2005 and for the three quarters ended September 30, 2005 versus comparable prior year periods is primarily due to increases in payroll and related expenses, professional fees, and legal costs, offset by a $12 million credit in Q3 2005 for actual and expected reimbursement by an insurer of certain legal costs previously incurred by us. General and administrative includes stock-based compensation of $6 million and $3 million for Q3 2005 and Q3 2004, and $17 million and $8 million in the three quarters ended September 30, 2005 and 2004. We expect absolute amounts spent in general and administrative to increase over time.

General and Administrative

General and Administrative

The increase in spending in general and administrative in Q2 2005 versus Q2 2004 is primarily due to increases in payroll and related expenses, and the increase in the first half of 2005 over the comparable prior year period is primarily due to increases in payroll and related expenses, professional fees, and legal costs. In Q1 2005 we recorded a charge of $8 million related to possible settlements of outstanding litigation, and in Q2 2005 the favorable resolution of one of these matters resulted in a $3 million expense reduction. General and administrative includes stock-based compensation of $6 million and $4 million for Q2 2005 and Q2 2004, and $11 million and $6 million in the first half of 2005 and 2004. See “Supplemental Information about Stock-Based Compensation” below. We expect absolute amounts spent in general and administrative to increase over time.

General and Administrative

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General and Administrative

The increase in spending in general and administrative is primarily due to an $8 million charge related to possible settlements of outstanding litigation, and due to increases in payroll and related expenses, professional fees and legal costs. General and administrative includes stock-based compensation of $4 million and $2 million for Q1 2005 and Q1 2004. See “Supplemental Information about Stock-Based Compensation” below. We expect absolute amounts spent in general and administrative to increase over time.

General and Administrative

General and Administrative

General and administrative expenses consist of payroll and related expenses for employees involved in general corporate functions, including accounting, finance, tax, legal, and human relations, among others; costs associated with use by these functions of facilities and equipment, such as depreciation expense and rent; professional fees and litigation costs; and other general corporate costs.

General and Administrative