Amazon.com 2004 Annual Report Download - page 75

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(2) Includes investments in foreign currencies of $970 million, principally Euros, British Pounds, and Yen.
December 31, 2003
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses (1)
Estimated
Fair Value
Cash .................................. $ 427,306 $ — $ — $ 427,306
Commercial paper and other cash
equivalents ........................... 669,403 5,564 — 674,967
Total cash and cash equivalents ........ 1,096,709 5,564 — 1,102,273
U.S. Treasury notes and bonds ............. 145,641 286 (149) 145,778
Asset-backed and agency securities ......... 85,403 302 (13) 85,692
Certificates of deposit .................... 20,026 7,369 — 27,395
Corporate notes and bonds ................ 24,866 131 — 24,997
Equity securities and other ................ 2,454 6,234 — 8,688
Marketable securities ................. 278,390 14,322 (162) 292,550
Total cash, cash equivalents, and
marketable securities (2) ........ $1,375,099 $19,886 $(162) $1,394,823
(1) The fair value of investments with loss positions was $100 million. We evaluated the nature of these
investments, which are primarily U.S. Treasury Notes, the duration of the impairments (all less than twelve
months), and the amount of the impairments relative to the underlying portfolio and concluded that such
amounts were not “other-than-temporary” as defined by SFAS No. 115, Accounting for Certain Investments
in Debt and Equity Securities.
(2) Includes investments in foreign currencies of $764 million, principally Euros, British Pounds, and Yen.
The following table summarizes contractual maturities of our cash equivalent and marketable fixed-income
securities as of December 31, 2004 (in thousands):
Amortized
Cost
Estimated
Fair Value
Due within one year .......................................... $ 874,774 $ 877,083
Due after one year through three years ............................ 160,965 159,330
Asset-backed and agency securities with various maturities ........... 321,841 323,245
$1,357,580 $1,359,658
Gross gains of $1 million, $17 million, and $9 million and gross losses of $1 million, $1 million and $1
million were realized on sales of available-for-sale marketable securities for 2004, 2003, and 2002.
We are required to pledge a portion of our marketable securities as collateral for standby letters of credit that
guarantee certain of our contractual obligations and for real estate lease agreements. See “Note 5—Commitments
and Contingencies.”
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