Posts Tagged ‘amazon’

How Amazon Dances Around Taxes So You Can Too [Amazon]

Amazon was almost founded on an Indian reservation, so it'd be immune to taxes. Fifteen years later, it's still outmaneuvering sales taxes so we don't have pay them either.

With free shipping if you're patient and no sales tax in most states, Amazon can undercut almost anybody by at least 5 percent—I know it's why I buy a ton of stuff from Amazon. The problem Best Buy—and every other brick & mortar store—has is that if you have a physical presence in a state, you have to to collect sales taxes. (Theoretically, we're supposed to calculate the taxes on stuff we buy online, and send it to the state ourselves.) Knowing not charging sales tax is a huge competitive advantage, Amazon studiously avoids them.

For instance, the entire reason it was founded in Washington, not California, was so it didn't have to charge CA residents sales taxes. And it only charges sales tax in 6 states (like Kansas) despite having some kind of presence in 14 of them, by putting portions of its business under wholly owned subsidiaries so it doesn't have to collect tax for them. In NY, it's still fighting the "Amazon tax" bill forcing it to collect tax in NY.

What's funny is that Netflix actually does charge sales tax—its discs count as a physical presence in every state, which seems utterly perverse—but rolls it into the general cost of your subscription. Given that Amazon is a $20 billion-a-year internet monolith and state governments could sure use the cash, they'll wake up to the whole internet thing eventually, so enjoy that 5 percent freebie while it lasts. I sure am! [NYT]




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Jeff Bezos on the Inevitable Obsolescence of Books [Blockquote]

Amazon CEO Jeff Bezos tells Dan Lyons, aka FSJ, just how deep his "missionary zeal" for spreading the gospel of the Kindle runs: One day, it's going to kill books entirely. The full quote:

Lyons: Do you think that the ink-on-paper book will eventually go away?

Bezos: I do. I don't know how long it will take. You know, we love stories and we love narrative; we love to get lost in an author's world. That's not going to go away; that's going to thrive. But the physical book really has had a 500-year run. It's probably the most successful technology ever. It's hard to come up with things that have had a longer run. If Gutenberg were alive today, he would recognize the physical book and know how to operate it immediately. Given how much change there has been everywhere else, what's remarkable is how stable the book has been for so long. But no technology, not even one as elegant as the book, lasts forever.

Also, Bezos isn't afraid of the Apple tablet, even if it does do all that stuff everybody thinks it will, because the Kindle's so darn good at the book thing. A dedicated device for reading? Sounds like a shorter shelf life than books. [Slate]




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Jeff Bezos on the Inevitable Obsolescence of Books [Blockquote]

Amazon CEO Jeff Bezos tells Dan Lyons, aka FSJ, just how deep his "missionary zeal" for spreading the gospel of the Kindle runs: One day, it's going to kill books entirely. The full quote:

Lyons: Do you think that the ink-on-paper book will eventually go away?

Bezos: I do. I don't know how long it will take. You know, we love stories and we love narrative; we love to get lost in an author's world. That's not going to go away; that's going to thrive. But the physical book really has had a 500-year run. It's probably the most successful technology ever. It's hard to come up with things that have had a longer run. If Gutenberg were alive today, he would recognize the physical book and know how to operate it immediately. Given how much change there has been everywhere else, what's remarkable is how stable the book has been for so long. But no technology, not even one as elegant as the book, lasts forever.

Also, Bezos isn't afraid of the Apple tablet, even if it does do all that stuff everybody thinks it will, because the Kindle's so darn good at the book thing. A dedicated device for reading? Sounds like a shorter shelf life than books. [Slate]




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E-reader privacy policies compared: Big Kindle is watching you
It's definitely shaping up to be the year of e-book readers: the Amazon Kindle is flying off (virtual) shelves, and we'd expect the Barnes & Noble Nook to start moving at a decent clip once the kinks get worked out. But any device with an always-on 3G connection to a central server raises some privacy questions, especially when it can broadcast granular, specific data about what you're reading -- data that's subject to a wide spectrum of privacy laws and regulations when it comes to real books and libraries, but much less so in the digital realm. We'd say it's going to take a while for all the privacy implications of e-books to be dealt with by formal policy, but in the meantime the best solution is to be informed -- which is where this handy chart from our friends at the Electronic Frontier Foundation comes in. As you'd expect, the more reading you do online, the more you can be tracked -- and Google Books, the Kindle, and the Nook all log a ton of data that can be shared with law enforcement and various other third parties if required. Of course, we doubt the cops are too interested in your Twilight reading habits, but honestly, we'd rather users weren't tracked at all. Check the full chart and more at the read link.

[Thanks, Tom]

E-reader privacy policies compared: Big Kindle is watching you originally appeared on Engadget on Sun, 27 Dec 2009 16:04:00 EST. Please see our terms for use of feeds.

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Kindle most gifted item in Amazon’s history, e-books outsell physical tomes on Christmas Day
We're still not about say the e-book reader industry has branched out beyond the infancy stage, but one of its flagship products certainly has reason to celebrate. Amazon has announced it's hit some pretty big milestones with the Kindle. The two bullet points it's currently touting loudest is that the reader has become "the most gifted item" in the company's history -- quite an achievement given the size of the online retailer, but what's missing here is any quantitative sales data to give us even a ballpark of the number of units sold. The other big news is that on Christmas Day (we're guessing not Christmas Eve, else the press release surely would've mentioned it, too), e-book sales actually outsold physical books. Those brand new Kindle owners needed something to read, right? It'll be interesting to see if that momentum is maintained through next year, especially with some major publishers starting to show some teeth with digital delays.

The Kindle bits were all part of Amazon's annual post-holiday statistical breakdown, so in case you're wondering, besides Kindle, the company is claiming its other top-selling electronics were the 8GB iPod Touch and Garmin nuvi260W, and in the wireless department the honor goes to Nokia's unlocked 5800 XpressMusic, Plantronic's 510 Bluetooth headset, and AT&T's edition of the BlackBerry Bold 9700.

[Thanks to everyone who sent this in]

Kindle most gifted item in Amazon's history, e-books outsell physical tomes on Christmas Day originally appeared on Engadget on Sun, 27 Dec 2009 09:30:00 EST. Please see our terms for use of feeds.

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Is Your Kindle Spying On You? (Yes.) [Ebooks]

If you don't want other people to know what you read, you probably shouldn't own an ereader. And you really shouldn't get a constantly connected Kindle or Nook, at least according to the EFF's eye-opening guide to ebook privacy.

The Kindle and Nook are tied to Amazon and Barnes & Noble's respective bookstores, meaning every purchase and every book search is recorded. Amazon's license agreement for the Kindle, for instance, notes that the Kindle's software "will provide Amazon with data about your Device and its interaction with the Service...and information related to the content on your Device and your use of it (such as automatic bookmarking of the last page read and content deletions from the Device)."

The Nook is obviously capable of phoning home in a similar manner, but it's unknown whether or not it does, at least for now. With Google Books, it's clear that what you're actually reading is logged, down to the specific page.

On the other hand, since Sony's Reader lacks 3G for a constant connection and isn't as tightly integrated with their ebook store, there's less opportunity for data collection, particularly if you stick w/ sideloaded books. Better still, says the EFF is the open-source FBReader. But you can't download books from anywhere in 3 seconds over 3G, and the experience isn't as nice.

It's the classic tradeoff: Less privacy for more convenience and a better experience, or greater privacy for a bigger hassle. What side are you on? [EFF]




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Kindle Milestone: Amazon Sold More Kindle Books Than Physical Books On Xmas [Kindle]

Amazon's Kindle hit an important and startling milestone yesterday: On Christmas, the company sold more Kindle books than physical books.

Yes, this is obviously the result of everyone who got a Kindle for Christmas (lots of folks) firing it up and ordering a bunch of eBooks on a day in which most physical-book readers weren't shopping. But it's still important and impressive.

The Kindle's economics are still lousy for Amazon: The company loses money on new releases and makes only a modest amount on older titles, thus losing an estimated $1 per Kindle book.

That said, Amazon's strategy is clearly to drive "ubiquity," and based on stats like those above, it is succeeding. The more Kindle books Amazon sells, the more leverage it will have over publishers when it tries to force them to cut wholesale prices. If Amazon's Kindle momentum continues, the day publishers have to capitulate will come sooner rather than later.

And, despite publishers' cries, this is not necessarily bad for publishers: If publishers cut wholesale prices, Amazon will be able to cut retail prices. If the retail prices are cut to nominal levels—$2.99 or $3.99 per copy—sales velocity should soar. Publishers and writers will make less per unit, but the increased volume should make up a lot of the difference.

Amazon's release below.

See also:
Amazon's Latest Kindle Deal Is Watershed, Will Increase Pressure On Publishers
Amazon Making No Headway With Publishers On Kindle Book Pricing

Amazon Kindle is the Most Gifted Item Ever on Amazon.comOn Christmas Day, for the First Time Ever, Customers Purchased More Kindle Books Than Physical BooksSEATTLE, Dec 26, 2009 (BUSINESS WIRE) — Amazon.com, Inc. (NASDAQ:AMZN) today announced that Kindle has become the most gifted item in Amazon's history. On Christmas Day, for the first time ever, customers purchased more Kindle books than physical books. The Kindle Store now includes over 390,000 books and the largest selection of the most popular books people want to read, including New York TimesBestsellersand New Releases.

"We are grateful to our customers for making Kindle the most gifted item ever in our history," said Jeff Bezos, founder and CEO of Amazon.com. "On behalf of Amazon.com employees around the world, we wish everyone happy holidays and happy reading!"

On Amazon's peak day, Dec. 14, 2009, customers ordered over 9.5 million items worldwide, which is a record-breaking 110 items per second.

Amazon Worldwide 2009 Holiday Facts (includes www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.fr, www.amazon.co.jp and www.amazon.ca):

 

  • Amazon shipped to over 178 countries.
  • One of our most remote shipments contained the EMU Australia Toddler Boot and was delivered to Atqasuk, Alaska.
  • On the peak day this season, Amazon's worldwide fulfillment network shipped over 7 million units.
  • Amazon shipped over 200,000 units to APO/FPO addresses.


  • Amazon shipped more than 99 percent of orders in time to meet holiday deadlines worldwide.

Amazon.com 2009 Holiday Facts (www.amazon.com only):

 

  • Amazon customers purchased enough fruit cake to equal the weight of a 1967 Volkswagen Bug.
  • Amazon customers bought enough gingerbread house kits that if stacked on top of each other would be as tall as the Sears Tower.


  • If all the computers customers purchased this holiday were stacked one on top of the other, they would be more than twice as high as Mt. Everest.
  • Amazon customers bought over 50 times more Light Therapy devices this holiday season than there are sunny days in Seattle the entire year.
  • For the holiday time period alone, Amazon customers purchased enough shoot-and-share camcorders to supply 50 years' worth of non-stop YouTube watching.
  • Amazon customers bought enough Levi's jeans to clothe everyone at the opening ceremony of the 2010 Olympics in Vancouver.
  • Amazon customers purchased so many Blu-ray disc players that if you lined them up side to side, they would stretch for more than 27 miles.
  • During the 2009 holiday season, Amazon customers bought enough 8 GB iPod touches to play 442 years of continuous music.


  • In 2009, Amazon customers purchased enough heart rate monitor watches to put one on the wrist of everyone who finished the New York City marathons in 2008 and 2009.
  • Amazon customers purchased enough Frustration-Free Package items to eliminate over 32,000 pounds of frustrating plastic materials, such as plastic clamshells.
  • The last One-Day Prime order that was delivered in time for Christmas, was placed on Dec. 23 at 9:17 p.m. Pacific and shipped to Boca Raton, Florida for delivery on Dec. 24. The item was a pair of Yellow Gold 8-8.5mm Freshwater Cultured Pearl Stud Earrings.
  • The last Local Express Delivery order that was delivered in time for Christmas, was placed by a Prime member and went to Seattle. It was a Kindle that was ordered at 1:43 p.m. on Christmas Eve and delivered at 4:57 p.m. that evening.

Amazon.com's Hot Holiday Bestsellers (Nov. 15 through Dec. 19, based on units ordered):

 

  • Electronics: Kindle Wireless Reading Device; Apple iPod touch 8 GB; and Garmin nuvi 260W 4.3-inch GPS
  • Toys: Scrabble Slam Cards; The Settlers of Catan; and Scene It? Twilight Deluxe Edition
  • Video Games and Hardware: Wii Fit Plus with Balance Board; New Super Mario Bros; and Call of Duty: Modern Warfare 2
  • Sports & Outdoors: Razor A Kick Scooter; Victorinox Swiss Army Champion Plus Pocket Knife; and P90X Extreme Home Fitness Workout Program
  • DVD: "Harry Potter and the Half-Blood Prince;" "Star Trek;" and "Up"
  • Books: "Going Rogue" by Sarah Palin; "The Lost Symbol" by Dan Brown; and "The Help" by Kathryn Stockett
  • Music: "I Dreamed A Dream" by Susan Boyle; "My Christmas" by Andrea Bocelli; and "Crazy Love" by Michael Bublé
  • Jewelry: Sterling Silver Marcasite & Garnet Glass Heart Pendant; 10k White Gold Diamond 3-Stone Heart Pendant; and 18k White Gold Round Diamond 4-Prong Stud Earrings
  • Watches: Casio Men's Waveceptor Atomic Dual-Time Watch; Invicta Men's II Collection Chronograph Stainless Steel Blue Dial Watch; and Timex Kids' Camouflage Stretch Band Watch
  • Beauty: Sephora Brand Color Play Palette II; Santa's Lump of Coal Christmas Soap; and Sephora Brand Ultimate Blockbuster
  • Home & Garden: Keurig My K-Cup Reusable Coffee Filter; Vinturi Essential Wine Aerator; and Oster Electric Wine-Bottle Opener
  • Clothing & Accessories: The Mountain Three Wolf Moon Short Sleeve Tee; Levi's Men's 550 Relaxed Fit Jean; and Levi's Men's 501 Jean
  • Shoes and Handbags (Amazon.com and Endless.com): Steve Madden Women's Bonanza Tall Shafted Flat Boot; Hunter Original Tall Welly Boot; and EMU Australia Women's Hip Boot
  • Health & Personal Care: Omron HJ-112 Digital Pocket Pedometer; Philips Sonicare Essence 5300 Power Toothbrush; and Farouk CHI 1 Inch Ceramic Flat Hairstyling Iron
  • Gourmet Food: Bon Appetit Gift Basket; Grand Ghirardelli Chocolate Gift Basket; and 50's Decade Box Gift Basket
  • Home Improvement: Black & Decker MSW100 Ready Wrench; Bosch Laser Distance Measuring Device; and Joby Gorillatorch Adjustable and Flexible Tripod Flashlight
  • Automotive Parts & Accessories: Wagan 12V Heated Seat Cushion; 3M Headlight Lens Restoration System; and Autel MaxiScan MS300 CAN OBD-II Scan Tool
  • Baby: Baby Einstein Takealong Tunes; Vulli Sophie the Giraffe Teether; and Baby Einstein Bendy Ball
  • Software: Microsoft Office Home and Student 2007; Adobe Photoshop Elements 8; and Microsoft Office 2008 for Mac Home & Student Edition
  • Grocery: Coffee People Donut Shop K-Cups for Keurig Brewers; Coffee People K-Cup Santa's Buzz; and Vita Coco 100% Pure Coconut Water
  • Wireless: Nokia 5800 XpressMusic Unlocked Phone; Plantronics 510 Bluetooth Headset; and BlackBerry Bold 9700 Phone (AT&T)



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Is Amazon Working Backward?
Although the chief, Jeff Bezos, says, "We start with the customer and we work backward," a solid core of customers remain unsatisfied with the Kindle.

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The Secret Lives of Amazon’s Elves [Holiday Shopping]

If Amazon is Santa, 400 folks living in RVs outside the Coffeyville, Kansas fulfillment center this winter are the elves.

A few years back Chris Dunphy and Cherie Ve Ard flipped the bird to their desk jobs, packed their belongings in a custom 17-foot solar-powered fiberglass camper, and hit the road to live "at the intersection of Epic and Awesome." A couple months ago, while staying with friends, they noticed that Amazon was luring RVers to Coffeyville, Kansas, the site of the retail giant's original and largest fulfillment center.

"We were located in San Diego at the time," explained Cherie. "We're part of a community of younger full-time RVers on NewRVer.com, a group of non-retired-age folks who are living the mobile lifestyle and kind of going outside the norms of 'Wait for retirement to travel.'" They noticed other RVers were flocking to Kansas to work for Amazon. The pay wasn't great—just above $10-an-hour, typically—but Chris and Cherie were planning on being in St. Louis for the holidays. Why not kill a month in Kansas working for Amazon?

Fast forward a couple of weeks, and the self-styled "technomads" were putting down stakes at a state park about 20 miles from the four enormous but dull warehouses that comprise the Coffeyville hub.

Their first day inside, Chris was awed. "Walking inside reminded me of the scene from Indiana Jones when they abandon the Ark in that giant warehouse. It's three stories high. It feels like an industrial library. Shelves going up and up and up." Hundreds of employees scurried, some "orange-badges" or "green-badges" hired by two temporary employment services mixed with the sought-after blue-badges of full-time Amazon employees, guided to their next destination by computers that flashed lights when bins were full or guided workers through the maze with handheld computers. "Pickers are basically playing a human Pac-Man game. They've got a computer scanner that they carry around that tells them where to go. They find their little shelf. One slot might be a book. The next shelf over might be a toaster. Or an iPod. The next slot after that might be a pair of jeans."

Fiberglass City

Amazon didn't always lure in "workcampers" from the RV community.

"From what the agency people had told us, Amazon had a bad experience busing in people from Tulsa," says Chris. "There was a lot of theft and a lot of people who weren't really serious about the job."

Workers from Tulsa were adding a 4-hour round-trip commute to an already grueling 10-to-12 hour shift, Cherie is quick to add. "They'd get there exhausted."

Enter the workcampers, people making a go at living in their RVs full time—many of whom might be otherwise overqualified. "I think Amazon was skeptical at first," says Cherie. "But after the first trial year they were very, very impressed. Workcampers came in enthusiastic about working, since most are professionals. We've owned businesses or been managers." White collar workers, trying their hand at the gypsy life. Even better, the workcampers were able to stay locally.

Not all of the camps provided for the workcampers were exactly inviting.

Chris and Cherie pulled into the one just before Thanksgiving, but could tell it wouldn't make for a pleasant stay. "The closest one was a city park called Walter Johnson. RVs were very close together. Half the campsites had full hookups, which meant they had water, electricity, and sewer dump on-site. Half the sites just had electricity and water and they had what they call a 'Honey Wagon' that comes around and pumps your sewage out a few times a week." Some RVers had been in Coffeyville since August.

Worse, it was cramped and muddy. "Coffeyville also had a flood three years ago, so it was very, very wet and muddy because the area had been washed out, then rained on recently." They eventually moved on to a state park, which was lovely, but also four times farther away. They rarely had time to enjoy the scenery.

"We were on the night shift," says Chris, "Our day would start when we would wake up at three in the afternoon. Work started at five."

"Every shift starts with what they call a 'Stand Up.' You gather in one area with your usual department—ours was called 'Sortable Singles,' which sounds like it should be the name of a dating site—and they'd count off how many people they needed in each department. Run through a few announcements. Give you a few safety tips. And then they lead you through five minutes of group stretches."

Cherie was mainly a packer, putting items in the box and scanning them. Chris, on the other hand, was a "water spider." He explains, "A water spider is responsible for keeping all the packers supplied, so ideally they'd never need to stand up and leave their station to get any other supplies like all the different sizes of boxes, plus making sure their tape machines and paper-spitter machines are operating."

"I never quite exactly figured out why they call it a water spider. My guess is back in the history of assembly line jobs, the water spider would be the person who would bring people on the line water to drink. Nobody seemed to know!"

The Mocha Factory

Work was monotonous and—for a couple who had been living a relative life of leisure—full of endless hours of standing on one's feet.

"24-Hour Fitness, Amazon-style," laughs Chris. Cherie liked to think of it as having "a personal trainer for 60 hours a week."

Inside the warehouses, machines and man alike were controlled by Amazon's computerized assembly line.

In one part of the factory, Chris watched two giant elliptical carousels, each one the size of a football field, carry wooden trays around at 15mph. "All the items are coming in the totes on one side of this giant machine. There are people who take each individual item, scan them and put them on the trays as they go by. The trays get to a chute where their order is being assembled, tilt, and the product flies down into that space. When all the items for a particular order are assembled in one place an orange light comes on and somebody comes by." Above, another carousel brought an endless procession of empty boxes to be filled with the orders.

It wasn't exactly what Cherie had envisioned. "When we told people were going to do this, someone said 'Whenever I click the order button on Amazon, I always imagine a chorus of happy, singing Oompa-Loompas riding around on Segways and shipping my stuff.' Well...no. It's not exactly like that."

"The computer has to prioritize how it's going to send out all the pickers in this giant facility. So someone could order a book and a sweater and an iPod, and those could be in completely different corners of the whole facility. But somehow they all arrive within about 30 minutes of each other." It's efficiency even Willy Wonka could love.

Chris and Cherie wouldn't work another season at Coffeyville, but not because they were miserable. "Everybody treated each other really nicely!" says Chris. It's just that the two are "experience junkies, craving the new," even if working for Amazon certainly gave them a fresh perspective on American culture.

"You'd have a tote come down the line, and you'd have adult toys right next to kid toys in the same bin," laughs Cherie. "The Obama Chia Pet was an oddity. And the Bill Clinton corkscrew. And I did have a tote one afternoon that was full of mooning gnomes."

Chris geeked on it pretty hard. (Before he became an migrant worker, Chris was a founding editor for boot magazine—later known as Maximum PC. He also worked for Palm.) "Just getting to experience that type of work, to literally see consumer culture flow beneath your fingertips, was absolutely fascinating. You feel the pulse of the market."

Besides their paychecks, all they're left with are memories—cameras weren't allowed inside.

"One of the rules at Amazon is that you're not allowed to bring anything into the facility that they sell." Chris went through a bit of withdrawal. "One of the hardest things about the job was going without my iPhone for a month. It was a great way to break the addiction of wanting to Twitter about things. You'd be like, 'Oh my God, I just saw this Bill Clinton corkscrew and you won't believe where the corkscrew comes out.' But oh crap, I can't tweet."




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Remainders – The Good, Bad and Ugly Things We Didn’t Post (and Why) [Remainders]

Happy Festivus, readers! You lot have disappointed me in so many ways, I'm deciding to punish you with these Remainders four: HDMI prepares new 3D-ready spec, Kindle DRM stripped, Steve Jobs takes a $1 salary, and snow snow snow snow!

HDMI Spec Updated to Ensure HD 3D Compatibility

The fine folks who work on HDMI have updated work on the 1.4 spec to make sure it can communicate all that upcoming Avatar-inspired HD 3D nonsense between display and source. Frankly, all this stuff is way over my head, and that's okay because dual-1080p streams in the home are still a ways off. From what I understand, HDMI will meet soon to discuss implementing the "Top/Bottom" format of 3D into HDMI, and the group is working to ensure that older 3D hardware will still work with the updated spec. Luckily, I have not been asked to participate in this discussion. But rest assured, HDMI is on the case. [Engadget]

Kindle eBooks Hacked!

An enterprising hacker named Labba has apparently managed to create a program that strips the DRM off Kindle-formatted ebooks, turning them into unprotected PDFs. The hack seems kind of too complicated to use right now, but Labba's working on a more consumer-friendly version as well. This isn't just hacking the Kindle to accept other formats—this is straight-up DRM elimination. Big win for hackers, not so hot for Amazon. [Engadget]

Steve Jobs Takes $1 Annual Salary for 2009

There've been a bunch of stories today about Steve Jobs' $1 salary that make it sound like a philanthropic exercise or some kind of response to the current recession—but Apple fans know that Steve Jobs has taken a $1 salary for about a decade. Of course, it's not like he needs a paycheck; his stock in Apple is valued at $1.1 billion, and his stock in Disney at $4.5 billion. Interestingly, he is usually reimbursed for miscellaneous expenses; last year, he was reimbursed $871,000, but this year only $4,000. He has been out on sick leave for a long time, but still, that's a big difference. This has been making the rounds (today I saw it on the AP, NYTimes, and HuffPo), but I'm sure you guys already knew it—so I tossed it into Remainders. [AP]

The Weather Outside Is Goddamn Frightful

Here are pictures of snow! [Boston.com]




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