U.S. businesses spent $250.7 billion on information and communication technology equipment and computer software in 2006, an increase of 6.3 percent from 2005, according to a recent report from the U.S. Census Bureau.
The report, Information and Communication Technology Survey, presents annual figures on business spending for information and communication technology equipment and computer software. It serves as a supplement to the broader Annual Capital Expenditures Survey report.
Of the total spending in 2006 on information and communication technology equipment and computer software, sometimes referred to as e-business infrastructure, non-capitalized spending accounted for $90.8 billion (36.2 percent), and capitalized spending accounted for $159.9 billion (63.8 percent). Noncapitalized spending in 2006 was unchanged from 2005, while capitalized spending increased 10.9 percent.
The census bureau describes noncapitalized expenditures are expenses for assets that have a useful life of more than one year and are written off in the same year in which they are made. Capitalized expenditures are expenditures for assets that have a useful life of more than one year and are usually depreciated
The largest share of noncapitalized equipment purchases, $13 billion, went for computers and computer peripherals, a 6.4 percent increase over 2005.
The largest share of non-capitalized operating leases and rental payments, $11.8 billion, went for computer and computer peripherals.
The largest share of noncapitalized computer software expenditures, $30.7 billion, went for purchases and payroll for developing software. The rest, $23.3 billion, went for software licensing and service/maintenance agreements.
Two categories accounted for total capitalized spending on e-business infrastructure in 2006: purchases of equipment, $100.6 billion, an increase of 6.8 percent from 2005; and purchases and payroll for developing software, $59.3 billion, an 18.4 percent increase over 2005.
