Amazon.com 2012 Annual Report Download - page 65

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Note 7—OTHER LONG-TERM LIABILITIES
Our other long-term liabilities are summarized as follows (in millions):
December 31,
2012 2011
Long-term capital lease obligations $ 737 $ 598
Long-term financing lease obligations (1) 9 562
Construction liabilities 87 59
Tax contingencies 336 266
Other (2) 1,108 885
$2,277 $2,370
(1) Long-term financing lease obligations related to our corporate headquarters leases are no longer included as
we acquired the associated land and buildings in December 2012. See “Note 3 – Property and Equipment.”
(2) Primarily includes long-term deferred tax liabilities.
Capital Leases
Certain of our equipment, primarily related to technology infrastructure, and buildings have been acquired
under capital leases. Long-term capital lease obligations are as follows (in millions):
December 31,
2012
Gross capital lease obligations $1,342
Less imputed interest (50)
Present value of net minimum lease payments 1,292
Less current portion of capital lease obligation (555)
Total long-term capital lease obligations $ 737
Construction Liabilities
We capitalize construction in progress and record a corresponding long-term liability for build-to-suit lease
agreements where we are considered the owner during the construction period for accounting purposes.
Tax Contingencies
We have recorded tax reserves for tax contingencies, inclusive of accrued interest and penalties, of
approximately $336 million as of December 31, 2012, and $266 million as of December 31, 2011, for U.S. and
foreign income taxes. These contingencies primarily relate to transfer pricing, state income taxes, and research
and development credits. See “Note 11—Income Taxes” for discussion of tax contingencies.
The remainder of our long-term liabilities primarily includes deferred tax liabilities, unearned revenue, asset
retirement obligations, and deferred rental liabilities.
Note 8—COMMITMENTS AND CONTINGENCIES
Commitments
We have entered into non-cancellable operating, capital, and financing leases for equipment and office,
fulfillment center, and data center facilities. Rental expense under operating lease agreements was $541 million,
$362 million, and $225 million for 2012, 2011, and 2010.
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