Amazon.com 2011 Annual Report Download - page 65

The following summarizes our principal contractual commitments, excluding open orders for inventory
purchases that support normal operations, as of December 31, 2011:
Year Ended December 31,
2012 2013 2014 2015 2016 Thereafter Total
(in millions)
Operating and capital commitments:
Debt principal and interest ................ $ 147 $ 265 $— $— $— $ — $ 412
Capital leases, including interest ........... 397 316 150 58 29 74 1,024
Financing lease obligations, including
interest (1) .......................... 49 51 54 55 56 598 863
Operating leases ........................ 380 420 407 354 300 1,232 3,093
Unconditional purchase obligations ........ 117 84 66 48 23 — 338
Other commitments (2) (3) (4) ............ 325 127 72 66 61 664 1,315
Total commitments ................. $1,415 $1,263 $749 $581 $469 $2,568 $7,045
(1) Relates to the 1,370,000 square feet of occupied corporate office space under build-to-suit lease
arrangements.
(2) Includes contractual obligations with minimum firm commitments recorded as liabilities on the consolidated
balance sheets.
(3) Includes the estimated timing and payments for rent, operating expenses, and tenant improvements
associated with approximately 330,000 square feet of corporate office space currently being developed
under build-to-suit leases and which we anticipate occupying in 2012 to 2013. The amount of space
available and our financial and other obligations under the lease agreements are affected by various factors,
including government approvals and permits, interest rates, development costs and other expenses and our
exercise of certain rights under the lease agreements. See “Note 3—Fixed Assets” for a discussion of these
leases.
(4) Excludes $229 million of tax contingencies for which we cannot make a reasonably reliable estimate of the
amount and period of payment, if any.
Pledged Securities
We have pledged or otherwise restricted $156 million and $160 million in 2011 and 2010 of our cash and
marketable securities as collateral for standby and trade letters of credit, guarantees, debt related to our
international operations, as well as real estate leases. We classify cash and marketable securities with use
restrictions of twelve months or longer as non-current “Other assets” on our consolidated balance sheets.
Inventory Suppliers
During 2011, no vendor accounted for 10% or more of our inventory purchases. We generally do not have
long-term contracts or arrangements with our vendors to guarantee the availability of merchandise, particular
payment terms, or the extension of credit limits.
Legal Proceedings
The Company is involved from time to time in claims, proceedings and litigation, including the following:
In June 2001, Audible, Inc., our subsidiary acquired in March 2008, was named as a defendant in a
securities class-action filed in United States District Court for the Southern District of New York related to its
initial public offering in July 1999. The lawsuit also named certain of the offering’s underwriters, as well as
Audible’s officers and directors as defendants. Approximately 300 other issuers and their underwriters have had
similar suits filed against them, all of which are included in a single coordinated proceeding in the Southern
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