Amazon.com 2001 Annual Report Download - page 81

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
At December 31, 2001, the accrued liability associated with the restructuring-related and other charges was
$61 million and consisted of the following (in thousands):
Balance at
March 31,
2001
Subsequent
Accruals, net
Non-Cash
Settlements
and Other
Adjustments Payments
Balance at
December 31,
2001
Due Within
12 Months
Due After
12 Months
Lease obligations ...... $34,667 $52,738 $(2,675) $(31,543) $53,187 $35,578 $17,609
Termination benefits . . . 8,445 113 (2,354) (6,143) 61 61 —
Broker commissions,
professional fees and
other miscellaneous
restructuring costs . . . 4,121 5,052 1,559 (2,542) 8,190 5,159 3,031
$47,233 $57,903 $(3,470) $(40,228) $61,438 $40,798 $20,640
During 2000, the Company identified certain levels of impairment corresponding with the business-unit
goodwill and other intangibles initially recorded in connection with the following acquisitions: Alexa Internet,
Back to Basics Toys, Inc., Livebid, Inc. and the catalog and Internet assets of Acme Electric Motor Co. (Tool
Crib). Accordingly, the Company recorded an impairment loss of $184 million. Also during 2000, the Company
recorded an impairment loss of $11 million relating to the decline in fair value, measured using discounted
estimates of future cash flows, of certain fixed assets. The fixed-asset impairment amount included $4 million,
$3 million and $4 million of computers, equipment and software; leasehold improvements; and leased assets,
respectively.
Other costs associated with the Company’s acquisition-related activities were $5 million and $8 million for
2000 and 1999, respectively. No such amounts were recorded during 2001.
Note 13—OTHER GAINS (LOSSES), NET
Other gains (losses), net were recorded during 2001 and 2000. No such amounts were recorded during 1999.
Other gains (losses), net consisted of the following:
Years Ended December 31,
2001 2000
(in thousands)
Foreign-currency gains on 6.875% PEACS .......................... $46,613 $ —
Losses on sales of Euro-denominated investments, net ................. (22,548) —
Other-than-temporary impairment losses, equity investments ............ (43,588) (188,832)
Contract termination by third parties ............................... 22,400 6,033
Net gains from acquisitions of investments by third parties .............. 784 40,160
Warrant fair-value remeasurements and other ........................ (5,802) —
$ (2,141) $(142,639)
Effective January 1, 2001, currency gains and losses arising from the remeasurement of the 6.875%
PEACS’s principal from Euros to U.S. dollars each period are recorded to “Other gains (losses), net.” Prior to
January 1, 2001, 6.875% PEACS’s principal of 615 million Euros was designated as a hedge of an equivalent
amount of Euro-denominated investments classified as available-for-sale; accordingly, currency gains and losses
on the 6.875% PEACS were recorded to “Accumulated other comprehensive loss” on the consolidated balance
72