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AMZN » Topics » Technology and Content

These excerpts taken from the AMZN 10-K filed Jan 29, 2010.

Technology and Content

We seek to efficiently invest in several areas of technology and content including seller platforms, web services, digital initiatives, and expansion of new and existing product categories, as well as technology infrastructure so that we can continue to enhance the customer experience, improve our process efficiency and support our infrastructure web services. See “Overview” for a discussion of how management views advances in technology and the importance of innovation. We expect spending in technology and content to increase over time as we continue to add employees to our staff and add technology infrastructure.

For the years ended 2009, 2008, and 2007, we capitalized $187 million, $187 million, and $129 million of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $172 million, $143 million, and $116 million for 2009, 2008, and 2007.

A significant majority of our technology costs are incurred in the U.S. and most of them are allocated to our North America segment.

Technology and Content

Technology and content expenses consist principally of payroll and related expenses for employees involved in, application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the compute, storage and telecommunications infrastructure used internally and supporting Amazon Web Services.

Technology and content costs are expensed as incurred, except for certain costs relating to the development of internal-use software and website development, including software used to upgrade and enhance our websites and processes supporting our business, which are capitalized and amortized over two years.

This excerpt taken from the AMZN 8-K filed Jan 28, 2010.

Technology and Content

 

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Technology and content expenses consist principally of payroll and related expenses for employees involved in, application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the compute, storage and telecommunications infrastructure used internally and supporting Amazon Web Services.

 

  •  

A significant majority of our costs for “Technology and content” are incurred in the United States and most of these costs are allocated to our North America segment.

This excerpt taken from the AMZN 8-K filed Oct 22, 2009.

Technology and Content

 

  •  

Technology and content expenses consist principally of payroll and related expenses for employees involved in application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the compute, storage and telecommunications infrastructure.

 

  •  

A significant majority of our costs for “Technology and content” are incurred in the United States and most of these costs are allocated to our North America segment.

 

Contacts:   
Amazon.com Investor Relations    Amazon.com Public Relations
Rob Eldridge, 206/266-2171    Craig Berman, 206/266-7180
www.amazon.com/ir   

 

Page 12 of 12

This excerpt taken from the AMZN 8-K filed Jul 23, 2009.

Technology and Content

 

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Technology and content expenses consist principally of payroll and related expenses for employees involved in application development, category expansion, editorial content, buying, merchandising selection and systems support, as well as costs associated with the compute, storage and telecommunications infrastructure.

 

  •  

A significant majority of our costs for “Technology and content” are incurred in the United States and most of these costs are allocated to our North America segment.

This excerpt taken from the AMZN 10-Q filed Apr 24, 2009.

Technology and Content

We seek to efficiently invest in several areas of technology and content including seller platforms, web services, digital initiatives, and expansion of new and existing product categories, as well as technology infrastructure so that we can continue to enhance the customer experience, improve our process efficiency and support our infrastructure web services. We expect spending in technology and content to increase over time as we continue to add employees to our staff and add technology infrastructure.

During Q1 2009 and Q1 2008, we capitalized $41 million (including $6 million of stock-based compensation) and $57 million (including $22 million acquired under business combinations and $6 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $40 million and $33 million for Q1 2009 and Q1 2008.

A significant majority of our technology costs are incurred in the U.S. and most of them are allocated to our North America segment.

This excerpt taken from the AMZN 8-K filed Apr 23, 2009.

Technology and Content

 

  •  

Technology and content expenses consist principally of payroll and related expenses for employees involved in application development, category expansion, editorial content, buying, merchandising selection and systems support, as well as costs associated with the compute, storage, and telecommunications infrastructure.

 

  •  

A significant majority of our costs for “Technology and content” are incurred in the United States and most of these costs are allocated to our North America segment.

These excerpts taken from the AMZN 10-K filed Jan 30, 2009.

Technology and Content

We seek to efficiently invest in several areas of technology and content including seller platforms, web services, digital initiatives, and expansion of new and existing product categories, as well as technology infrastructure so that we can continue to enhance the customer experience, improve our process efficiency and support our infrastructure web services. See “Overview” above for a discussion of how management views advances in technology and the importance of innovation. We expect spending in technology and content to increase over time as we continue to add employees to our staff and add technology infrastructure.

For the years ended 2008, 2007, and 2006, we capitalized $187 million, $129 million, and $123 million of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $143 million, $116 million, and $86 million for 2008, 2007, and 2006.

A significant majority of our technology costs are incurred in the U.S. and most of them are allocated to our North America segment.

Technology and Content

Technology and content expenses consist principally of payroll and related expenses for employees involved in, application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the compute, storage and telecommunications infrastructure.

Technology and content costs are expensed as incurred, except for certain costs relating to the development of internal-use software and website development, including software used to upgrade and enhance our websites and processes supporting our business, which are capitalized and amortized over two years.

This excerpt taken from the AMZN 8-K filed Jan 29, 2009.

Technology and Content

 

  •  

Technology and content expenses consist principally of payroll and related expenses for employees involved in application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the compute, storage and telecommunications infrastructure.

 

  •  

We seek to efficiently invest in several areas of technology and content, including seller platforms, web services, digital initiatives, and the expansion of new and existing product categories, as well as in technology infrastructure to enhance the customer experience, improve our process efficiencies and support our infrastructure web services.

 

  •  

A significant majority of our technology costs are incurred in the US and most of them are allocated to our North America segment.

 

  •  

Certain costs relating to development of internal-use software and website development, including software used to upgrade and enhance our websites and processes supporting our business, are capitalized and amortized over two years.

 

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During Q4 2008 and Q4 2007, we capitalized $40 million (including $7 million of stock-based compensation) and $33 million (including $6 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $38 million and $31 million for Q4 2008 and Q4 2007.

This excerpt taken from the AMZN 10-Q filed Oct 22, 2008.

Technology and Content

We seek to efficiently invest in several areas of technology and content, including seller platforms, web services, digital initiatives, and expansion of new and existing product categories, as well as technology infrastructure so that we can continue to enhance the customer experience, improve our process efficiency and support our infrastructure web services. See “Overview” above for a discussion of how management views advances in technology and the importance of innovation. We expect spending in technology and content to increase over time as we continue to add employees to our staff and add technology infrastructure.

During Q3 2008 and Q3 2007, we capitalized $41 million (including $7 million of stock-based compensation) and $35 million (including $6 million of stock-based compensation) of costs associated with internal-use software and website development. For the nine months ended September 30, 2008 and 2007, we capitalized $139 million (including $20 million of stock-based compensation) and $97 million (including $15 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $37 million and $30 million for Q3 2008 and Q3 2007, and $105 million and $85 million for the nine months ended September 30, 2008 and 2007.

A significant majority of our technology costs are incurred in the U.S. and most of them are allocated to our North America segment.

This excerpt taken from the AMZN 8-K filed Oct 22, 2008.

Technology and Content

 

  •  

Technology and content expenses consist principally of payroll and related expenses for employees involved in application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the compute, storage and telecommunications infrastructure.

 

  •  

We seek to efficiently invest in several areas of technology and content including seller platforms, web services, digital initiatives and the expansion of new and existing product categories, as well as in technology infrastructure to enhance the customer experience, improve our process efficiencies and support our infrastructure web services.

 

  •  

Certain costs relating to development of internal-use software and website development, including development of software to upgrade and enhance our websites and processes supporting our business, are capitalized and amortized over two years.

 

  •  

During Q3 2008 and Q3 2007, we capitalized $41 million (including $7 million of stock-based compensation) and $35 million (including $6 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $37 million and $30 million for Q3 2008 and Q3 2007.

This excerpt taken from the AMZN 10-Q filed Jul 25, 2008.

Technology and Content

We continue to invest in several areas of technology and content including seller platforms, web services, and digital initiatives, as well as expansion of new and existing product categories. We are also investing in technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency and support our infrastructure web services. See “Overview” above for a discussion of how management views advances in technology and the importance of innovation. We intend to continue investing in areas of technology and content as we continue to add employees to our staff and add technology infrastructure.

During Q2 2008 and Q2 2007, we capitalized $41 million (including $7 million of stock-based compensation) and $33 million (including $5 million of stock-based compensation) of costs associated with internal-use software and website development. For the six months ended June 30, 2008 and 2007, we capitalized $98 million (including $13 million of stock-based compensation) and $62 million (including $9 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $36 million and $28 million for Q2 2008 and Q2 2007, and $68 million and $55 million for the six months ended June 30, 2008 and 2007.

A significant majority of our technology costs are incurred in the U.S. and most of them are allocated to our North America segment.

This excerpt taken from the AMZN 8-K filed Jul 23, 2008.

Technology and Content

 

  •  

Technology and content expenses consist principally of payroll and related expenses for employees involved in application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the compute, storage and telecommunications infrastructure.

 

  •  

We continue to invest in several areas of technology and content including seller platforms, web services, and digital initiatives, as well as expansion of new and existing product categories. We are also investing in technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency and support our infrastructure web services.

 

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Certain costs relating to development of internal-use software and website development, including development of software to upgrade and enhance our websites and processes supporting our business, are capitalized and amortized over two years.

 

  •  

During Q2 2008 and Q2 2007, we capitalized $41 million (including $7 million of stock-based compensation) and $33 million (including $5 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $36 million and $28 million for Q2 2008 and Q2 2007.

This excerpt taken from the AMZN 10-Q filed Apr 25, 2008.

Technology and Content

We continue to invest in several areas of technology and content including seller platforms, web services, and digital initiatives, as well as expansion of new and existing product categories. We are also investing in technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency and support our infrastructure web services. See “Overview” above for a discussion of how management views advances in technology and the importance of innovation. The growth rate of our technology and content spending decreased in Q1 2008 compared to the comparable prior period. We intend to continue investing in areas of technology and content as we continue to add employees to our staff and add technology infrastructure.

During Q1 2008 and Q1 2007, we capitalized $57 million (including $22 million acquired under business combinations and $6 million of stock-based compensation) and $29 million (including $4 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $33 million and $27 million for Q1 2008 and Q1 2007.

A significant majority of our technology costs are incurred in the U.S. and most of them are allocated to our North America segment.

 

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This excerpt taken from the AMZN 8-K filed Apr 23, 2008.

Technology and Content

 

  •  

Technology and content expenses consist principally of payroll and related expenses for employees involved in application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the compute, storage and telecommunications infrastructure.

 

  •  

We continue to invest in several areas of technology and content including seller platforms, web services, and digital initiatives, as well as expansion of new and existing product categories. We are also investing in technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency and support our infrastructure web services.

 

Page 12 of 18

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Certain costs relating to development of internal-use software and website development, including development of software to upgrade and enhance our websites and processes supporting our business, are capitalized and amortized over two years.

 

  •  

During Q1 2008 and Q1 2007, we capitalized $57 million (including $22 million acquired under business combinations and $6 million of stock-based compensation) and $29 million (including $4 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $33 million and $27 million for Q1 2008 and Q1 2007.

These excerpts taken from the AMZN 10-K filed Feb 11, 2008.

Technology and Content

Technology and content expenses consist principally of payroll and related expenses for employees involved in, application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the compute, storage and telecommunications infrastructure.

Technology and content costs are expensed as incurred, except for certain costs relating to the development of internal-use software and website development, including software used to upgrade and enhance our websites and processes supporting our business, which are capitalized and amortized over two years.

Technology and Content

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">Technology and content expenses consist principally of payroll and related expenses for employees involved in, application development, category
expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the compute, storage and telecommunications infrastructure.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Technology and content costs are expensed as incurred, except for certain costs relating to the development of internal-use software and website
development, including software used to upgrade and enhance our websites and processes supporting our business, which are capitalized and amortized over two years.

FACE="Times New Roman" SIZE="2">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.

This excerpt taken from the AMZN 8-K filed Jan 30, 2008.

Technology and Content

 

  •  

Technology and content expenses consist principally of payroll and related expenses for employees involved in application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the compute, storage and telecommunications infrastructure.

 

  •  

We continue to invest in several areas of technology and content including seller platforms, web services, and digital initiatives, as well as expansion of new and existing product categories. We are also investing in technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency and support our infrastructure web services. The growth rate of our technology and content spending decreased in 2007 compared with the prior year.

 

Page 13 of 19

  •  

We intend to continue investing in areas of technology and content as we continue to add employees to our staff and add technology infrastructure.

 

  •  

Certain costs relating to development of internal-use software and website development, including development of software to upgrade and enhance our websites and processes supporting our business, are capitalized and amortized over two years.

 

     Q4 2007     Q4 2006  
     (in millions)  

Capitalization

    $ 33     $ 31  

Amortization

      (31 )     (26 )
                

Net capitalization

    $ 2     $ 5  
                
This excerpt taken from the AMZN 10-Q filed Oct 25, 2007.

Technology and Content

We continue to invest in several areas of technology and content including seller platforms, web services, and digital initiatives, as well as expansion of new and existing product categories. We are also investing in technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency. See “Overview” above for a discussion of how management views advances in technology and the importance of innovation. The growth rate of our technology and content spending decreased in Q3 2007 and the nine months ended September 30, 2007 compared to the comparable prior period. We intend to continue investing in areas of technology and content as we continue to add employees to our staff and add technology infrastructure.

During Q3 2007 and Q3 2006, we capitalized $35 million (including $6 million of stock-based compensation) and $34 million (including $5 million of stock-based compensation) of costs associated with internal-use software and website development. For the nine months ended September 30, 2007 and 2006, we capitalized $97 million (including $15 million of stock-based compensation) and $92 million (including $12 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $30 million and $23 million for Q3 2007 and Q3 2006, and $85 million and $61 million for the nine months ended September 30, 2007 and 2006.

 

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A significant majority of our technology costs are incurred in the U.S. and are allocated to our North America segment.

This excerpt taken from the AMZN 8-K filed Oct 23, 2007.

Technology and Content

 

  •  

Technology and content expenses consist principally of payroll and related expenses for employees involved in application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the systems and technology infrastructure.

 

  •  

We continue to invest in several areas of technology and content, including seller platforms, web services, and digital initiatives, as well as expansion of new and existing product categories. We are also investing in technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency. The growth rate of our technology and content spending decreased in Q3 2007 and the nine months ended

 

Page 12 of 18

 

September 30, 2007, compared to the comparable prior period. We intend to continue investing in areas of technology and content as we continue to add employees to our staff and add technology infrastructure.

 

  •  

Certain costs relating to development of internal-use software, including development of software to upgrade and enhance our websites and processes supporting our business, are capitalized and depreciated over two years.

 

     Q3 2007     Q3 2006  
     (in millions)  

Capitalized costs of internal-use software and website development

    $ 35     $ 34  

Amortization of previously capitalized amounts

      (30 )     (23 )
                

Net capitalization

    $ 5     $ 11  
                
This excerpt taken from the AMZN 10-Q filed Jul 26, 2007.

Technology and Content

We continue to invest in several areas of technology and content including seller platforms, web services, and digital initiatives, as well as expansion of new and existing product categories. We are also investing in technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency. See “Overview” above for a discussion of how management views advances in technology and the importance of innovation. The growth rate of our technology and content spending decreased in Q2 2007 and the six months ended June 30, 2007 compared to the comparable prior period. We intend to continue investing in areas of technology and content as we continue to add employees to our staff and add technology infrastructure.

During Q2 2007 and Q2 2006, we capitalized $33 million (including $5 million of stock-based compensation) and $32 million (including $5 million of stock-based compensation) of costs associated with internal-use software and website development. For the six months ended June 30, 2007 and 2006, we capitalized $62 million (including $9 million of stock-based compensation) and $58 million (including $7 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $28 million and $20 million for Q2 2007 and Q2 2006, and $55 million and $38 million for the six months ended June 30, 2007 and 2006.

 

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A significant majority of our technology costs are incurred in the U.S. and are allocated to our North America segment.

This excerpt taken from the AMZN 8-K filed Jul 24, 2007.

Technology and Content

 

  •  

Technology and content expenses consist principally of payroll and related expenses for employees involved in application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the systems and telecommunications infrastructure.

 

  •  

We continue to invest in several areas of technology and content including seller platforms, web services, and digital initiatives, as well as expansion of new and existing product categories. We are also investing in technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency. The growth rate of our technology and content spending decreased in Q2 2007 and the six months ended June 30, 2007 compared to the comparable prior period. We intend to continue investing in areas of technology and content as we continue to add employees to our staff and add technology infrastructure.

 

Page 12 of 18

  •  

Certain costs relating to development of internal-use software, including development of software to upgrade and enhance our websites and processes supporting our business, are capitalized and depreciated over two years.

 

     Q2 2007     Q2 2006  
     (in millions)  

Capitalized costs of internal-use software and website development

    $ 33     $ 32  

Amortization of previously capitalized amounts

      (28 )     (20 )
                

Net capitalization

    $ 5     $ 12  
                
This excerpt taken from the AMZN 10-Q filed Apr 26, 2007.

Technology and Content

We are investing in several areas of technology and content including seller platforms, web services, and digital initiatives, as well as expansion of new and existing product categories. We are also investing in technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency. We believe these initiatives are important to our long-term success. See “Overview” above for a discussion of how management views advances in technology and the importance of innovation. We intend to continue investing in areas of technology and content as we continue to add employees to our staff and add technology infrastructure.

During Q1 2007 and Q1 2006, we capitalized $29 million (including $4 million of stock-based compensation) and $26 million (including $1 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $27 million and $18 million for Q1 2007 and Q1 2006.

A significant majority of our technology costs are incurred in the U.S. and are allocated to our North America segment.

This excerpt taken from the AMZN 8-K filed Apr 24, 2007.

Technology and Content

 

  •  

Technology and content expenses consist principally of payroll and related expenses for employees involved in application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the systems and telecommunications infrastructure.

 

  •  

We employ computer scientists, software engineers, and other employees to support our technology and content initiatives. These initiatives include seller platforms, web services, and digital, as well expansion of new and existing product categories. Additionally, we incur costs for technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency.

 

  •  

We intend to continue investing in areas of technology and content as we continue to add employees to our staff and add technology infrastructure.

 

  •  

Certain costs relating to development of internal-use software, including development of software to upgrade and enhance our websites and processes supporting our business, are capitalized and depreciated over two years.

 

Page 12 of 17

     Q1 2007     Q1 2006  
     (in millions)  

Capitalized costs of internal-use software and website development

    $ 29     $ 26  
    

Amortization of previously capitalized amounts

      (27 )     (18 )
                

Net capitalization

    $ 2     $ 8  
                
This excerpt taken from the AMZN 10-K filed Feb 16, 2007.

Technology and Content

Technology and content expenses consist principally of payroll and related expenses for employees involved in, application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the systems and telecommunications infrastructure.

Technology and content costs are expensed as incurred, except for certain costs relating to the development of internal-use software and website development, including software used to upgrade and enhance our websites and processes supporting our business, which are capitalized and amortized over two years.

This excerpt taken from the AMZN 8-K filed Feb 1, 2007.

Technology and Content

 

  •   Technology and content expenses consist principally of payroll and related expenses for employees involved in application development, category expansion, editorial content, buying, merchandising selection, and systems support, as well as costs associated with the systems and telecommunications infrastructure.

 

  •   In 2005 and 2006, we have added computer scientists, software engineers, and other employees to support our technology and content initiatives. These initiatives include seller platforms, web services, and digital, as well expansion of new and existing product categories. Additionally, we increased spending on technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency.

 

  •   We intend to continue investing in areas of technology and content as we continue to add employees to our staff.

 

Page 13 of 18

  •   Certain costs relating to development of internal-use software, including development of software to upgrade and enhance our websites and processes supporting our business, are capitalized and depreciated over two years.

 

     Q4 2006     Q4 2005  
     (in millions)  

Capitalized costs of internal-use software and website development

    $ 31     $ 25  

Amortization of previously capitalized amounts

      (26 )     (15 )
                

Net capitalization

    $ 5     $ 10  
                
This excerpt taken from the AMZN 10-Q filed Oct 26, 2006.

Technology and Content

In 2005, we added a significant number of computer scientists, software engineers, and employees involved in editorial content, buying, merchandising, and systems support. We are investing in several areas of technology including seller platforms, web services, and digital initiatives. In addition, we increased spending on our technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency. We expect the year-over-year percentage growth in technology and content, excluding stock-based compensation, to continue to decrease in Q4 2006. Technology and content includes stock-based compensation of $16 million and $13 million for Q3 2006 and Q3 2005, and $38 million and $36 million for the nine months ended September 30, 2006 and 2005.

 

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During Q3 2006 and Q3 2005, we capitalized $34 million (including $5 million of stock-based compensation) and $25 million (including $3 million of stock-based compensation) of costs associated with internal-use software and website development. For the nine months ended September 30, 2006 and 2005, we capitalized $92 million (including $12 million of stock-based compensation) and $65 million (including $8 million of stock- based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $23 million and $14 million for Q3 2006 and Q3 2005, and $61 million and $35 million for the nine months ended September 30, 2006 and 2005.

A significant majority of our technology costs are incurred in the U.S. and are allocated to our North America segment.

This excerpt taken from the AMZN 8-K filed Oct 24, 2006.

Technology and Content

 

  •   In 2005, we added a significant number of computer scientists, software engineers and employees involved in editorial content, buying, merchandising, and systems support. We are investing in several areas of technology including seller platforms, web services and digital initiatives. In addition, we increased spending on our technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency.

 

  •   Technology and content expenses consist principally of payroll and related expenses for employees involved in research and development, including application development, editorial content, merchandising selection, and systems and telecommunications support, as well as costs associated with systems and telecommunications infrastructure.

 

  •   A significant majority of our technology costs are incurred in the U.S. and are allocated to our North America segment.

 

  •   Certain costs relating to the development of internal-use software and website development, including software to upgrade and enhance our websites and processes supporting our business, are capitalized and depreciated over two years. In Q3 2006 and Q3 2005, we capitalized $34 million (including $5 million of stock-based compensation) and $25 million (including $3 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $23 million and $14 million for Q3 2006 and Q3 2005.

 

  •   We expect the year-over-year percentage growth in technology and content, excluding stock-based compensation, to continue to decrease in Q4 2006.
This excerpt taken from the AMZN 10-Q filed Jul 27, 2006.

Technology and Content

In 2005, we added a significant number of computer scientists, software engineers, and employees involved in editorial content, merchandising selection, and systems support. We are investing in several areas of technology including seller platforms, web services, and digital initiatives. In addition, we increased spending on our technology infrastructure so that we can continue to enhance the customer experience and improve our

 

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process efficiency. We expect the year-over-year percentage growth in technology and content, excluding stock-based compensation, to decrease in the second half of 2006. Technology and content includes stock-based compensation of $16 million and $13 million for Q2 2006 and Q2 2005, and $23 million for the six months ended June 30, 2006 and 2005.

During Q2 2006 and Q2 2005, we capitalized $32 million (including $5 million of stock-based compensation) and $22 million (including $3 million of stock-based compensation) of costs associated with internal-use software and website development. For the six months ended June 30, 2006 and 2005, we capitalized $58 million (including $7 million of stock-based compensation) and $40 million (including $5 million of stock- based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $20 million and $12 million for Q2 2006 and Q2 2005, and $38 million and $21 million for the six months ended June 30, 2006 and 2005.

A significant majority of our technology costs are incurred in the U.S. and are allocated to our North America segment.

This excerpt taken from the AMZN 8-K filed Jul 25, 2006.

Technology and Content

 

  •   Technology and content expenses consist principally of payroll and related expenses for employees involved in research and development, including application development, editorial content, merchandising selection, and systems and telecommunications support, as well as costs associated with systems and telecommunications infrastructure.

 

  •   In 2005, we added a significant number of computer scientists, software engineers and employees involved in editorial content, merchandising selection and systems support. We are investing in several areas of technology including seller platforms, web services and digital initiatives. In addition, we increased spending on our technology infrastructure so that we can continue to enhance the customer experience and improve our process efficiency.

 

  •   We expect the year-over-year percentage growth in technology and content, excluding stock-based compensation, to decrease in the second half of 2006.

 

  •   A significant majority of our technology costs are incurred in the U.S. and are allocated to our North America segment.

 

  •   Certain costs relating to the development of internal-use software and website development, including software to upgrade and enhance our websites and processes supporting our business, are capitalized and depreciated over two years. In Q2 2006 and Q2 2005, we capitalized $32 million (including $5 million of stock-based compensation) and $22 million (including $3 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $20 million and $12 million for Q2 2006 and Q2 2005.

 

  •   We expect absolute amounts spent in technology and content to increase over time.
This excerpt taken from the AMZN 10-Q filed Apr 27, 2006.

Technology and Content

We significantly increased our spending in technology and content in Q1 2006 compared to Q1 2005, which corresponds with our focus on several technology initiatives. In 2005, we added a significant number of computer scientists and software engineers to our staff so that we can continue to enhance the customer experience on our websites and those websites powered by us, improve our process efficiency, and invest in several areas of technology including seller platforms, search, web services, and digital initiatives. We expect the year-over-year percentage growth in technology and content, excluding stock-based compensation, to decrease substantially in the back half of 2006. Technology and content includes stock-based compensation of $8 million and $10 million for Q1 2006 and Q1 2005.

For Q1 2006 and Q1 2005, we capitalized $26 million (including $1 million of stock-based compensation) and $18 million (including $2 million of stock-based compensation) of costs associated with internal-use software and website development, which are partially offset by amortization of previously capitalized amounts of $18 million and $10 million.

A significant majority of our technology costs are incurred in the U.S. and most of them are allocated to our North America segment.

EXCERPTS ON THIS PAGE:

10-K (2 sections)
Jan 29, 2010
8-K
Jan 28, 2010
8-K
Oct 22, 2009
8-K
Jul 23, 2009
10-Q
Apr 24, 2009
8-K
Apr 23, 2009
10-K (2 sections)
Jan 30, 2009
8-K
Jan 29, 2009
10-Q
Oct 22, 2008
8-K
Oct 22, 2008
10-Q
Jul 25, 2008
8-K
Jul 23, 2008
10-Q
Apr 25, 2008
8-K
Apr 23, 2008
10-K (2 sections)
Feb 11, 2008
8-K
Jan 30, 2008
10-Q
Oct 25, 2007
8-K
Oct 23, 2007
10-Q
Jul 26, 2007
8-K
Jul 24, 2007
10-Q
Apr 26, 2007
8-K
Apr 24, 2007
10-K
Feb 16, 2007
8-K
Feb 1, 2007
10-Q
Oct 26, 2006
8-K
Oct 24, 2006
10-Q
Jul 27, 2006
8-K
Jul 25, 2006
10-Q
Apr 27, 2006

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