Amazon.com 2013 Annual Report Download - page 65

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54
Note 7—OTHER LONG-TERM LIABILITIES
Our other long-term liabilities are summarized as follows (in millions):
December 31,
2013 2012
Long-term capital lease obligations $ 1,435 $ 737
Long-term financing lease obligations 555 9
Construction liabilities 385 87
Tax contingencies 457 336
Long-term deferred tax liabilities 571 476
Other 839 632
$ 4,242 $ 2,277
Capital Leases
Certain of our equipment, primarily related to technology infrastructure, and buildings have been acquired under capital
leases. Long-term capital lease obligations are as follows (in millions):
December 31, 2013
Gross capital lease obligations $ 2,437
Less imputed interest (47)
Present value of net minimum lease payments 2,390
Less current portion of capital lease obligations (955)
Total long-term capital lease obligations $ 1,435
Financing Leases
We continue to be the deemed owner after occupancy of certain facilities that were constructed as build-to-suit lease
arrangements and previously reflected as “Construction liabilities.” As such, these arrangements are accounted for as financing
leases. Long-term finance lease obligations are as follows (in millions):
December 31, 2013
Gross financing lease obligations $ 783
Less imputed interest (200)
Present value of net minimum lease payments 583
Less current portion of financing lease obligations (28)
Total long-term financing lease obligations $ 555
Construction Liabilities
We capitalize construction in progress and record a corresponding long-term liability for build-to-suit lease agreements
where we are considered the owner during the construction period for accounting purposes.
Tax Contingencies
We have recorded tax reserves for tax contingencies, inclusive of accrued interest and penalties, of approximately $457
million as of December 31, 2013, and $336 million as of December 31, 2012, for U.S. and foreign income taxes. These
contingencies primarily relate to transfer pricing, state income taxes, and research and development credits. See “Note 11—
Income Taxes” for discussion of tax contingencies.