Amazon.com 2001 Annual Report Download - page 48

excess cash in A-rated or higher short- to intermediate-term fixed income securities and money market mutual
funds. Fixed rate securities may have their fair market value adversely affected due to a rise in interest rates, and
we may suffer losses in principal if forced to sell securities that have declined in market value due to changes in
interest rates.
The following table provides information about our cash equivalent and marketable fixed income securities,
including principal cash flows by expected maturity, and the related weighted average interest rates at
December 31, 2001. Amounts are as follows (in thousands, except percentages):
2002 2003 2004 2005 2006 Thereafter Total
Estimated Fair
Value at
December 31,
2001
Commercial paper and short-term obligations . $419,098 $—$— $—$— $— $419,098 $418,936
Weighted average interest rate ........... 2.33% — — — — — 2.33%
Certificates of deposit .................... 18,159 — — — — — 18,159 18,159
Weighted average interest rate ........... 3.48% — — — — — 3.48%
Corporate notes and bonds ................ — 26,520 7,800 — — — 34,320 37,602
Weighted average interest rate ........... — 2.98% 4.00% — — — 3.21%
Asset-backed and agency securities ......... 6,209 73,070 149,765 — — 1,767 230,811 232,821
Weighted average interest rate ........... 2.55% 3.42% 3.63% — — 7.64% 3.56%
Treasury notes and bonds ................. 11,900 72,100 36,700 — — — 120,700 125,947
Weighted average interest rate ........... 2.05% 2.44% 3.42% — — — 2.70%
Cash equivalents and marketable fixed-
income securities ..................... $455,366 $171,690 $194,265 $— $— $1,767 $823,088 $833,465
The following table provides information about our cash equivalent and marketable fixed income securities,
including principal cash flows by expected maturity, and weighted average interest rates at December 31, 2000.
Amounts were as follows (in thousands, except percentages):
2001 2002 2003 2004 2005 Thereafter Total
Estimated Fair
Value at
December 31,
2000
Commercial paper and short-term obligations $677,895 $ — $ — $— $ — $ — $677,895 $677,895
Weighted average interest rate .......... 5.40% — — — — — 5.40%
Corporate notes and bonds ............... 950 7,937 8,560 — — — 17,447 17,447
Weighted average interest rate .......... 4.45% 4.95% 4.95% — — — 4.92%
Asset-backed and agency securities ........ 21,507 11,718 11,114 — 19,635 20,747 84,721 85,189
Weighted average interest rate .......... 5.68% 5.96% 4.71% — 6.87% 7.39% 6.30%
Treasury notes and bonds ................ 42,535 74,021 25,595 — — — 142,151 142,085
Weighted average interest rate .......... 5.05% 5.22% 4.52% — — — 5.04%
Cash equivalents and marketable fixed-
income securities .................... $742,887 $93,676 $45,269 $— $19,635 $20,747 $922,214 $922,616
At December 31, 2001, we have long-term debt of $2.16 billion primarily associated with our 6.875%
PEACS, 4.75% Convertible Subordinated Notes and Senior Discount Notes, which are due in 2010, 2009 and
2008, respectively. Our payment commitments associated with these debt instruments are fixed during the
corresponding terms and are comprised of interest payments, principal payments, or a combination thereof. The
market value of our long-term debt will fluctuate with movements of interest rates, increasing in periods of
declining rates of interest, and declining in periods of increasing rates of interest.
Foreign Currency Exchange Rate Risk
During 2001, net sales from our internationally-focused Web sites (www.amazon.co.uk, www.amazon.de,
www.amazon.fr, and www.amazon.co.jp) accounted for 21% of consolidated revenues. Net sales generated from
these Web sites, as well as most of the related expenses incurred, are denominated in the functional currencies of
the corresponding Web sites. The functional currency of our subsidiaries that either operate or support
www.amazon.co.uk, www.amazon.de, www.amazon.fr, and www.amazon.co.jp is the same as the local currency
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