How much do depreciation assumptions change AMAZON COM INC's earnings?
Gross property and equipment, depreciation and capital spending, with an alternative useful-life calculator. Cash spending is kept separate.
Depreciation against the asset base
Gross property and equipment of $534.10B against $65.76B of depreciation and amortization implies an average life of about 8.1 years (gross assets ÷ annual charge). The charge includes amortization where the company reports them together.
| Fiscal year | Gross PP&E | Net PP&E | Depreciation & amortization | Implied life (yrs) | Capital expenditure (cash) |
|---|---|---|---|---|---|
| 2016 | $42.44B | $29.11B | $8.12B | 5.2 | $6.74B |
| 2017 | $72.66B | $48.87B | $11.48B | 6.3 | $11.96B |
| 2018 | $95.77B | $61.80B | $15.34B | 6.2 | $13.43B |
| 2019 | $119.68B | $72.70B | $21.79B | 5.5 | $16.86B |
| 2024 | $394.06B | $252.66B | $52.80B | 7.5 | $83.00B |
| 2025 | $534.10B | $357.02B | $65.76B | 8.1 | $131.82B |
10-K filed 2026-02-06 · DepreciationDepletionAndAmortization
Compare an alternative useful life
A 9-year average life gives an annual charge of $59.34B instead of $65.76B. After tax at 21%, net income would be higher by $5.07B. Cash spending ($131.82B) is unchanged.
Straight-line on gross assets, no salvage value; land and construction in progress are not separated. Treat as an order-of-magnitude comparison.