Amazon.com 2004 Annual Report Download - page 85

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 7—OTHER COMPREHENSIVE INCOME
The changes in the components of other comprehensive income (loss) were as follows (in thousands):
Year Ended December 31,
2004 2003 2002
(in thousands)
Net income (loss) ................................................ $588,451 $ 35,282 $(149,132)
Foreign currency translation gains .............................. (502) 14,707 16,910
Net unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses) arising during the year ............... 5,472 17,434 23,459
Less reclassification of net realized (gains) losses included in net
income (loss) ......................................... (11,161) (14,952) (3,165)
Net unrealized gains (losses) on available-for-sale securities: ..... (5,689) 2,482 20,294
Net activity of terminated Euro Currency Swap:
Remeasurement of Euro Currency Swap to fair value ........... — 14,842 21,106
Reclassification of (gains) losses to offset currency losses and
gains on hedged portion of 6.875% PEACS included in net
income (loss) ......................................... — (5,081) (12,578)
Amortization of net unrealized losses on terminated euro Currency
Swap ................................................... 1,786 1,127 —
Net activity of terminated Euro Currency Swap ................ 1,786 10,888 8,528
Tax effect of other comprehensive income, net .................... (1,225) — —
Other comprehensive income (loss) ..................... (5,630) 28,077 45,732
Comprehensive income (loss) ...................... $582,821 $ 63,359 $(103,400)
Tax effect in 2004 of other comprehensive income relates to the following components (in thousands):
Net unrealized gains (losses) on available-for-sale securities
Unrealized gains arising during the year ............................................. $ 5,097
Reclassification of net realized gains included in net income ............................. (10,394)
(5,297)
Amortization of net unrealized losses on terminated Euro Currency Swap ....................... 4,072
Net tax effect on other comprehensive income ............................................ $ (1,225)
Accumulated balances within other comprehensive income were as follows (in thousands):
December 31,
2004 2003
(in thousands)
Net unrealized gains on foreign currency translation ............................... $29,948 $ 30,450
Net unrealized gains on available-for-sale securities, net of tax ....................... 9,341 20,327
Net unrealized losses on terminated Euro Currency Swap, net of tax ................... (7,180) (13,038)
Total accumulated other comprehensive income ............................... $32,109 $ 37,739
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