Note 3—FIXED ASSETS

Fixed assets, at cost, consisted of the following (in millions):


	December 31,
	2011		2010
Gross Fixed Assets (1):
Fulfillment and customer service	$	1,633	$	775
Technology infrastructure		2,573		1,192
Internal-use software, content, and website development		643		487
Other corporate assets		831		418
Construction in progress		106		384

Gross fixed assets	$	5,786	$	3,256

Accumulated Depreciation (1):
Fulfillment and customer service		364		211
Technology infrastructure		610		316
Internal-use software, content, and website development		294		255
Other corporate assets		101		60

Total accumulated depreciation		1,369		842

Total fixed assets, net	$	4,417	$	2,414

(1)	Excludes the original cost and accumulated depreciation of fully-depreciated assets.

Depreciation expense on fixed assets was $1.0 billion, $552 million, and $384 million which includes amortization of fixed assets acquired under capital lease obligations of $335 million, $164 million, and $88 million for 2011, 2010, and 2009. Gross assets remaining under capital leases were $1.6 billion and $818 million at December 31, 2011 and 2010. Accumulated depreciation associated with capital leases was $603 million and $331 million at December 31, 2011 and 2010.

We capitalize construction in progress and record a corresponding long-term liability for lease agreements where we are considered the owner during the construction period for accounting purposes, including portions of our Seattle, Washington, corporate office space that we do not currently occupy. The building which we have not yet occupied is scheduled to be completed in 2012 and 2013.

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. The long-term construction obligation is now considered long-term financing lease obligations with amounts payable during the next 12 months recorded as “Accrued expenses and other.” Gross assets remaining under financing leases were $595 million and $189 million at December 31, 2011 and 2010. Accumulated depreciation associated with financing leases was $37 million and $8 million at December 31, 2011 and 2010.