Amazon.com 2006 Annual Report Download - page 68

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(2) Includes investments in foreign currencies of $623 million, principally Euros, British Pounds, and Japanese
Yen.
December 31, 2005
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses (1)
Estimated
Fair Value
Cash ................................................. $ 115 $— $— $ 115
Money market funds .................................... 569 — — 569
Bank of certificates of deposits ............................ 29 — — 29
Corporate debt securities ................................. 406 1 (5) 402
U.S. government and agency securities ...................... 440 3 (4) 439
Asset-backed securities .................................. 275 1 (1) 275
Equity and other securities ................................ 171 5 (5) 171
Total cash, cash equivalents, and marketable securities (2) ....
$2,005 $ 10 $ (15) $2,000
(1) The fair value of investments with loss positions was $954 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.”
(2) Includes investments in foreign currencies of $905 million, principally Euros, British Pounds, and Japanese
Yen.
The following table summarizes contractual maturities of our cash equivalent and marketable fixed-income
securities as of December 31, 2006 (in millions):
Amortized
Cost
Estimated
Fair Value
Due within one year .............................................. $1,101 $1,099
Due after one year through five years ................................ 243 241
Asset-backed and agency securities with various maturities ............... 556 554
$1,900 $1,894
Gross gains of $18 million, $7 million, and $12 million and gross losses of $16 million, $12 million and $1
million were realized on sales of available-for-sale marketable securities, including Euro-denominated securities,
for 2006, 2005, and 2004.
We are required to pledge a portion of our cash equivalents or marketable securities as collateral for standby
letters of credit that guarantee certain of our contractual obligations, a line of credit, and real estate lease
agreements. See “Note 6—Commitments and Contingencies.”
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