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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In April 2008, the FASB issued FSP No. 142-3, Determination of the Useful Life of Intangible Assets. FSP
No. 142-3 amends the factors that should be considered in developing renewal or extension assumptions used to
determine the useful life of a recognized intangible asset under FASB Statement No. 142, Goodwill and Other
Intangible Assets. FSP No. 142-3 is effective for financial statements issued for fiscal years beginning after
December 15, 2008. Early adoption is prohibited. We do not expect the adoption of FSP No. 142-3 will have a
material impact on our consolidated financial statements.
In June 2008, the FASB ratified the consensus reached on EITF Issue No. 07-05, Determining Whether an
Instrument (or Embedded Feature) Is Indexed to an Entity’s Own Stock. EITF Issue No. 07-05 clarifies the
determination of whether an instrument (or an embedded feature) is indexed to an entity’s own stock, which
would qualify as a scope exception under SFAS No. 133, Accounting for Derivative Instruments and Hedging
Activities. EITF Issue No. 07-05 is effective for financial statements issued for fiscal years beginning after
December 15, 2008. Early adoption for an existing instrument is not permitted. We do not expect the adoption of
EITF Issue No. 07-05 will have a material impact on our consolidated financial statements.
Note 2—CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES
As of December 31, 2008 and 2007 our cash, cash equivalents, and marketable securities primarily
consisted of cash, government and government agency securities, AAA-rated money market funds and other
investment grade securities. Such amounts are recorded at fair value. The following table summarizes, by major
security type, our cash, cash equivalents and marketable securities (in millions):
December 31, 2008
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses (1)
Total
Estimated
Fair Value
Cash ................................................. $ 355 $— $— $ 355
Money market funds .................................... 1,682 — — 1,682
Foreign government and agency securities ................... 1,120 8 — 1,128
Corporate debt securities (2) .............................. 194 2 (2) 194
U.S. government and agency securities ...................... 589 5 — 594
Asset-backed securities .................................. 62 — (4) 58
Other fixed income securities .............................. 23 — — 23
Equity securities ........................................ 2 — (1) 1
$4,027 $ 15 $ (7) $4,035
Less: Long-term marketable securities (3) .................... (308)
Total cash, cash equivalents, and marketable securities ..... $3,727
57