Amazon.com 2013 Annual Report Download - page 31

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20
Income Taxes
We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Significant judgment is required in
evaluating and estimating our provision and accruals for these taxes. During the ordinary course of business, there are many
transactions for which the ultimate tax determination is uncertain. Our effective tax rates could be adversely affected by
earnings being lower than anticipated in countries where we have lower statutory rates and higher than anticipated in countries
where we have higher statutory rates, losses incurred in jurisdictions for which we are not able to realize the related tax benefit,
changes in foreign currency exchange rates, entry into new businesses and geographies and changes to our existing businesses,
acquisitions (including integrations) and investments, changes in the valuation of our deferred tax assets and liabilities, or
changes in the relevant tax, accounting, and other laws, regulations, administrative practices, principles, and interpretations,
including fundamental changes to the tax laws applicable to corporate multinationals. The U.S., many countries in the
European Union, and a number of other countries are actively considering changes in this regard. In addition, we are subject to
audit in various jurisdictions, and such jurisdictions may assess additional income tax liabilities against us. Although we believe
our tax estimates are reasonable, the final outcome of tax audits and any related litigation could be materially different from our
historical income tax provisions and accruals. Developments in an audit, litigation, or the relevant laws, regulations,
administrative practices, principles, and interpretations could have a material effect on our operating results or cash flows in the
period or periods for which that development occurs, as well as for prior and subsequent periods.