Amazon.com 2013 Annual Report Download - page 66

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Note 8—COMMITMENTS AND CONTINGENCIES
Commitments
We have entered into non-cancellable operating, capital, and financing leases for equipment and office, fulfillment center,
and data center facilities. Rental expense under operating lease agreements was $759 million, $561 million, and $381 million
for 2013, 2012, and 2011.
The following summarizes our principal contractual commitments, excluding open orders for purchases that support
normal operations, as of December 31, 2013 (in millions):
Year Ended December 31,
2014 2015 2016 2017 2018 Thereafter Total
Operating and capital commitments:
Debt principal and interest $ 835 $ 906 $ 81 $ 1,081 $ 69 $ 1,375 $ 4,347
Capital leases, including interest 963 883 361 71 42 117 2,437
Financing lease obligations, including
interest 49 48 52 52 53 529 783
Operating leases 752 654 604 539 470 2,116 5,135
Unconditional purchase obligations (1) 539 386 80 37 29 27 1,098
Other commitments (2) (3) 746 275 167 137 110 1,194 2,629
Total commitments $ 3,884 $ 3,152 $ 1,345 $ 1,917 $ 773 $ 5,358 $ 16,429
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(1) Includes unconditional purchase obligations related to agreements to acquire and license digital video content that
represent long-term liabilities or are not reflected on the consolidated balance sheets. For those agreements with
variable terms, we do not estimate what the total obligation may be beyond any minimum quantities and/or pricing as
of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content
provider are included to the extent such commitments are fixed or a minimum amount is specified.
(2) Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit
lease arrangements that have not been placed in service.
(3) Excludes $407 million of tax contingencies for which we cannot make a reasonably reliable estimate of the amount and
period of payment, if any.
Pledged Assets
As of December 31, 2013 and 2012, we have pledged or otherwise restricted $482 million and $99 million of our cash,
marketable securities, and certain fixed assets as collateral for standby and trade letters of credit, guarantees, debt, and real
estate leases.
Suppliers
During 2013, no vendor accounted for 10% or more of our purchases. We generally do not have long-term contracts or
arrangements with our vendors to guarantee the availability of merchandise, particular payment terms, or the extension of credit
limits.
Legal Proceedings
The Company is involved from time to time in claims, proceedings, and litigation, including the following:
In November 2007, an Austrian copyright collection society, Austro-Mechana, filed lawsuits against Amazon.com
International Sales, Inc., Amazon EU Sarl, Amazon.de GmbH, Amazon.com GmbH, and Amazon Logistik in the Commercial
Court of Vienna, Austria and in the District Court of Munich, Germany seeking to collect a tariff on blank digital media sold by
our EU-based retail websites to customers located in Austria. In July 2008, the German court stayed the German case pending a
final decision in the Austrian case. In July 2010, the Austrian court ruled in favor of Austro-Mechana and ordered us to report
all sales of products to which the tariff potentially applies for a determination of damages. We contested Austro-Mechana’s
claim and in September 2010 commenced an appeal in the Commercial Court of Vienna. We lost this appeal and in March 2011
commenced an appeal in the Supreme Court of Austria. In October 2011, the Austrian Supreme Court referred the case to the
European Court of Justice (ECJ). In July 2013, the European Court of Justice ruled that EU law does not preclude application