Amazon.com 2007 Annual Report Download - page 66

Download and view the complete annual report

Please find page 66 of the 2007 Amazon.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
accounting principles and expands disclosures about fair value measurements. SFAS No. 157 is effective for
fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. We do not expect
the adoption of SFAS No. 157 to have a material impact on our consolidated financial statements. The FASB
may delay a portion of this standard.
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and
Financial Liabilities. SFAS No. 159 permits companies to choose to measure many financial instruments and
certain other items at fair value. SFAS No. 159 is effective for financial statements issued for fiscal years
beginning after November 15, 2007. We do not expect the adoption of SFAS No. 159 to have a material impact
on our consolidated financial statements.
In December 2007, the FASB issued SFAS No. 141 (R), Business Combinations, and SFAS No. 160,
Noncontrolling Interests in Consolidated Financial Statements. SFAS No. 141 (R) requires an acquirer to
measure the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquiree at
their fair values on the acquisition date, with goodwill being the excess value over the net identifiable assets
acquired. SFAS No. 160 clarifies that a noncontrolling interest in a subsidiary should be reported as equity in the
consolidated financial statements. The calculation of earnings per share will continue to be based on income
amounts attributable to the parent. SFAS No. 141 (R) and SFAS No. 160 are effective for financial statements
issued for fiscal years beginning after December 15, 2008. Early adoption is prohibited. We have not yet
determined the effect on our consolidated financial statements, if any, upon adoption of SFAS No. 141 (R) or
SFAS No. 160.
Note 2—CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES
We measure our cash, cash equivalents and marketable securities at fair value based on the quoted prices in
active markets. The following tables summarize, by major security type, our cash, cash equivalents and
marketable securities (in millions):
December 31, 2007
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses (1)
Estimated
Fair Value
Cash .................................................. $ 813 $— $— $ 813
Money market funds ..................................... 1,408 — — 1,408
Corporate debt securities .................................. 116 1 (1) 116
U.S. government and agency securities ....................... 298 4 (1) 301
Asset-backed securities ................................... 101 1 (1) 101
Foreign government and agency securities .................... 358 — (1) 357
Equity securities ........................................ 5 7 — 12
Other securities ......................................... 4 — — 4
Total cash, cash equivalents, and marketable securities (2) . . . $3,103 $ 13 $ (4) $3,112
(1) The fair value of investments with loss positions was $515 million. We evaluated the nature of these
investments, which are primarily U.S. Treasury Notes, the duration of the impairments (substantially all less
than twelve months), and concluded that such amounts were not “other-than-temporary.”
(2) Includes investments in foreign currencies of $1.2 billion, principally Euros, British Pounds, and Japanese
Yen.
58