Amazon.com 2007 Annual Report Download - page 77

Download and view the complete annual report

Please find page 77 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)
Accumulated balances within other comprehensive income (loss) were as follows:
December 31,
2007 2006
(in millions)
Net unrealized gains (losses) on foreign currency translation, net of tax .......... $(1) $ 2
Net unrealized gains (losses) on available-for-sale securities, net of tax .......... 7 (1)
Net unrealized losses on terminated Euro Currency Swap, net of tax ............. (1) (2)
Total accumulated other comprehensive income (loss) .................... $5 $(1)
Note 9—OTHER OPERATING EXPENSE, NET
Other operating expense, net, was $9 million and $10 million in 2007 and 2006, primarily attributable to
amortization of other intangibles. Other operating expense, net, was $47 million in 2005, primarily attributable to
our settlement of a patent lawsuit for $40 million, as well as amortization of other intangibles of $5 million.
Note 10—OTHER INCOME (EXPENSE), NET
Other income (expense), net, was $(1) million, $(4) million, and $2 million, in 2007, 2006 and 2005, and
consisted primarily of gains and losses on sales of marketable securities, foreign-currency transaction gains and
losses, and other miscellaneous losses.
Foreign-currency transaction gains and losses primarily relate to the interest payable on our 6.875%
PEACS, as well as foreign-currency gains and losses on cross-currency investments. Since interest payments on
our 6.875% PEACS are settled in Euros, the balance of interest payable is subject to gains or losses resulting
from changes in exchange rates between the U.S. Dollar and Euro between reporting dates and payment.
Note 11—REMEASUREMENTS AND OTHER
Remeasurements and other consisted of the following:
Year Ended December 31,
2007 2006 2005
(in millions)
Foreign-currency gain (loss) on remeasurement of 6.875% PEACS ................. $(33) $(37) $ 90
Loss on redemption of long-term debt ........................................ — (6) (6)
Foreign-currency gain (loss) on intercompany balances .......................... 32 50 (47)
Other .................................................................. (6) 4 5
Total remeasurements and other ......................................... $ (7) $11 $42
Note 12—INCOME TAXES
In 2007, 2006 and 2005 we recorded net tax provisions of $184 million, $187 million, and $95 million. A
majority of this provision is non-cash. We have current tax benefits and net operating losses relating to excess
stock-based compensation that are being utilized to reduce our taxable income. As such, cash taxes paid were $24
million, $15 million, and $12 million for 2007, 2006, and 2005.
69