Amazon.com 2002 Annual Report Download - page 85

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Restructuring-related lease obligations are as follows (in thousands):
2003 2004 2005 2006 2007 Thereafter Total
Gross lease obligations ÏÏÏ $22,550 $15,150 $11,164 $10,021 $10,078 $29,663 $98,626
Estimated sublease
income(1)ÏÏÏÏÏÏÏÏÏÏÏÏ (1,647) (3,469) (6,656) (7,008) (6,986) (21,644) (47,410)
Lease obligations, net ÏÏÏÏ $20,903 $11,681 $ 4,508 $ 3,013 $ 3,092 $ 8,019 $51,216
(1) At December 31, 2002, the Company had signed contractual sublease agreements covering
$10 million in future payments.
Restructuring-related and other expenses in 2000 primarily relate to impairments of goodwill and
other intangibles recorded in connection with certain of the Company's business acquisitions.
Note 11 Ì Other Income (Expense), Net
Other income (expense), net consisted of the following (in thousands):
Years Ended December 31,
2002 2001 2000
Gains on sales of marketable securities, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 5,700 $ 1,335 $ 280
Foreign-currency transaction losses, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1,086) (2,019) (3,250)
Miscellaneous state, foreign and other taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 700 (1,222) (3,123)
Other miscellaneous gains (losses), net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 309 6 (3,965)
$ 5,623 $(1,900) $(10,058)
Note 12 Ì Other Gains (Losses), Net
Other gains (losses), net consisted of the following (in thousands):
Years Ended December 31,
2002 2001 2000
Foreign-currency gains (losses) on 6.875% PEACSÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(103,136) $ 46,613 $ Ì
Gains (losses) on sales of Euro-denominated investments, netÏÏÏÏÏÏ 2,227 (22,548) Ì
Other-than-temporary impairment losses on equity investments ÏÏÏÏÏ (8,101) (43,588) (188,832)
Gains on sales of equity investments, netÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 13,044 Ì Ì
Gains from terminations of commercial contractsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 22,400 6,033
Net gains from acquisition of investments by third parties ÏÏÏÏÏÏÏÏÏ Ì 784 40,160
Warrant remeasurements and other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (307) (5,802) Ì
$ (96,273) $ (2,141) $(142,639)
Note 13 Ì Income Taxes
The Company has provided for current and deferred U.S. federal, state and foreign income taxes for
the current and all prior periods presented. Current and deferred income taxes were provided with respect
to jurisdictions where subsidiaries of the Company produce taxable income. As of December 31, 2002, the
Company has recorded a net deferred tax asset of $3 million, which consists primarily of certain state
jurisdiction net operating loss carryforwards. The Company has provided a valuation allowance for the
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