Amazon.com 2006 Annual Report Download - page 77

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As of December 31, 2006, there was $217 million of net unrecognized compensation cost related to
unvested stock-based compensation arrangements. This compensation is recognized on an accelerated basis
resulting in approximately half of the compensation expected to be expensed in the next twelve months, and a
weighted average recognition period of 1.3 years.
During 2006 and 2005, the fair value of restricted stock units and restricted stock awards vested was
$68 million and $50 million, and the intrinsic value of options exercised was $105 million and $180 million.
Common Stock Available for Future Issuance
At December 31, 2006, common stock available for future issuance is as follows (in millions):
December 31,
2006
Stock awards .................................................... 119
Shares issuable upon conversion of 4.75% Convertible Subordinated Notes ....
11
Shares issuable upon conversion of 6.875% PEACS ..................... 3
Total common stock reserved for future issuance ................... 133
Note 8—OTHER COMPREHENSIVE INCOME (LOSS)
The changes in the components of other comprehensive income (loss) were as follows:
Year Ended December 31,
2006 2005 2004
(in millions)
Net income ............................................................. $190 $359 $588
Net activity on available-for-sale securities:
Unrealized gains/losses arising during the year, net of tax effect ........... 4 (14) 11
Reclassification adjustment for net realized gains/losses included in net
income, net of tax .............................................. — — (22)
Net change in unrealized gains/losses on available-for-sale securities . . . 4 (14) (11)
Foreign currency translation adjustment, net of tax .......................... (13) (15) (1)
Amortization of net unrealized losses on terminated Euro Currency Swap, net of
tax .............................................................. 2 3 6
Other comprehensive loss ..................................... (7) (26) (6)
Comprehensive income ................................... $183 $333 $582
Accumulated balances within other comprehensive income (loss) were as follows:
2006 2005
(in millions)
Net unrealized gains on foreign currency translation, net of tax ................. $2 $15
Net unrealized losses on available-for-sale securities, net of tax ................ (1) (5)
Net unrealized losses on terminated Euro Currency Swap, net of tax ............. (2) (4)
Total accumulated other comprehensive income (loss) .................... $(1) $ 6
69