Amazon.com 2012 Annual Report Download - page 66

The following summarizes our principal contractual commitments, excluding open orders for purchases that
support normal operations, as of December 31, 2012 (in millions):
Year Ended December 31,
2013 2014 2015 2016 2017 Thereafter Total
Operating and capital commitments:
Debt principal and interest $ 656 $ 105 $ 866 $ 43 $1,069 $1,380 $ 4,119
Capital leases, including interest 562 403 214 51 17 95 1,342
Financing lease obligations, including
interest 1 1 1 1 1 9 14
Operating leases 595 634 570 514 453 2,688 5,454
Unconditional purchase obligations (1) 302 239 143 38 1 — 723
Other commitments (2) (3) 380 276 253 110 78 436 1,533
Total commitments $2,496 $1,658 $2,047 $757 $1,619 $4,608 $13,185
(1) Includes unconditional purchase obligations related to agreements to acquire and license digital video
content that represent long-term liabilities or that are not reflected on the consolidated balance sheets.
(2) Includes the estimated timing and amounts of payments for rent and tenant improvements associated with
build-to-suit lease arrangements that have not been placed in service.
(3) Excludes $294 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 $99 million and $156 million in 2012 and 2011 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.
Inventory Suppliers
During 2012, 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:
Beginning in March 2003, we were served with complaints filed in several different states, including
Illinois, by a private litigant, Beeler, Schad & Diamond, P.C., purportedly on behalf of the state governments
under various state False Claims Acts. The complaints allege that we (along with other companies with which we
have commercial agreements) wrongfully failed to collect and remit sales and use taxes for sales of personal
property to customers in those states and knowingly created records and statements falsely stating we were not
required to collect or remit such taxes. In December 2006, we learned that one additional complaint was filed in
the state of Illinois by a different private litigant, Matthew T. Hurst, alleging similar violations of the Illinois
state law. The Hurst case was dismissed with prejudice in June 2012. All of the complaints seek injunctive relief,
unpaid taxes, interest, attorneys’ fees, civil penalties of up to $10,000 per violation, and treble or punitive
damages under the various state False Claims Acts. It is possible that we have been or will be named in similar
cases in other states as well. We dispute the allegations of wrongdoing in these complaints and intend to
vigorously defend ourselves in these matters.
59