Amazon.com 2007 Annual Report Download - page 67

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
December 31, 2006
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses (1)
Estimated
Fair Value
Cash .................................................. $ 118 $— $— $ 118
Money market funds ..................................... 763 — — 763
Bank of certificates of deposits ............................. 50 — — 50
Corporate debt securities .................................. 420 — (1) 419
U.S. government and agency securities ....................... 208 1 (2) 207
Asset-backed securities ................................... 348 — (1) 347
Foreign government and agency securities .................... 105 — (1) 104
Equity securities ........................................ 4 3 — 7
Other securities ......................................... 4 — — 4
Total cash, cash equivalents, and marketable securities (2) . . . $2,020 $ 4 $ (5) $2,019
(1) The fair value of investments with loss positions was $978 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 $623 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, 2007 (in millions):
Amortized
Cost
Estimated
Fair Value
Due within one year .............................................. $1,818 $1,818
Due after one year through five years ................................ 466 469
$2,284 $2,287
Gross gains of $2 million, $18 million, and $7 million and gross losses of $3 million, $16 million and $12
million were realized on sales of available-for-sale marketable securities, including Euro-denominated securities,
for 2007, 2006, and 2005.
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.”
59