In 2003, U.S. businesses with employees invested $229.3 billion on information and communication technology (ICT) equipment, including computer software. Noncapitalized spending was $97.2 billion, or 42.4 percent of total spending and capitalized spending was $132.1 billion (as reported in the 2003 Annual Capital Expenditures Survey), or 57.6 percent of total spending.

Of the 2003 noncapitalized spending ($97.2 billion), purchases totaled $23.5 billion (24.2 percent), operating leases and rental payments totaled nearly $19.7 billion (20.3 percent), and computer software expenditures totaled $53.9 billion (55.5 percent). Of the capitalized spending ($132.1 billion), purchases totaled $87.8 billion (66.5 percent), and computer software expenditures totaled $44.3 billion (33.5 percent).

Of the noncapitalized purchases ($23.5 billion), computer and peripheral equipment accounted for $16.8 billion, ICT equipment excluding computers and peripherals accounted for $6.4 billion, and electromedical and electrotherapeutic apparatus accounted for $0.4 billion.

Of the noncapitalized operating leases and rental payments ($19.7 billion), computer and peripheral equipment accounted for $12.4 billion, ICT equipment excluding computers and peripherals accounted for $6.6 billion, and electromedical and electrotherapeutic apparatus accounted for nearly $0.7 billion.

Of the $53.9 billion for noncapitalized software expenditures, $33.2 billion, or 61.5 percent, was spent on purchases and payroll for developing software, and $20.7 billion was spent on software licensing and service/ maintenance agreements.

The Company Statistics Division prepared this report. Charles A. Funk, Assistant Division Chief for Surveys and Programs, was responsible for the overall planning, management, and coordination. Primary assistance for planning and implementation were under the direction of Valerie C. Strang, Chief, Business Investment Branch, assisted by Venita Holland, Sara Prebble, Derrick Roy, and Victor Souphom, Section Chiefs, Business Investment Branch. Primary staff assistance was provided by Ayub Abdallah, Brian Bonner, Larry S. Chomsisengphet, Beth Evans, William Gainor, Ashley Hildebrandt, Carly Johnston, Jungjin Kang, Kimberly Keller, Demetrius Lambeth, Harold Laney Jr., Joshua Lewis, Conrad Munger, Omar Nix, Sherrita Powell, Alan Tominack, and Matt Wills. Additional assistance was provided by Marie Rustin.

General direction for statistical methodology was provided by Carol Caldwell, Assistant Division Chief for Research and Methodology, and Mark S. Sands, Chief, Statistical Research and Methods Branch. Jeffrey L. Dalzell, Tameka Johnson, Justin Smith, and Yarissa Gonzalez developed and implemented the sample design, nonresponse adjustment and estimation methodology.

The Economic Planning and Coordination Division, William Samples, Chief, Mailout and Data Capture Branch, coordinated survey mailout and data collection with Section Chiefs Stephanie Studds, Christopher Berbert, and Amanda Williams. Primary assistance was provided by Loretta Brawner, Bernadette Gray, and Dameka Hemsley.

The staff of the National Processing Center, Angela Feldman-Harkins, Assistant Division Chief for Processing, performed mailout preparation and receipt operations, clerical and analytical review activities, and data entry.

The Economic Statistical Methods and Programming Division, Kenneth Keer, Chief, Current Manufacturing and Company Statistics Annuals Branch, developed and implemented computer processing systems. Nestor Baez Jr., Supervisory Computer Specialist Systems Analyst, supervised the preparation of computer programs. Stephen Potemkin was responsible for frame creation and sample selection. Tony Duong, Barbara Harris, Kavita Khaneja, and Diane Musachio were assigned primary programming responsibilities.

Finally, a special acknowledgment is due to the many businesses whose cooperation was essential to the success of this report.

If you have any questions concerning the statistics in this report, call 301-763-3324.