Amazon.com 2015 Annual Report Download - page 67

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57
Note 6—OTHER LONG-TERM LIABILITIES
Our other long-term liabilities are summarized as follows (in millions):
December 31,
2015 2014
Long-term capital lease obligations $ 4,212 $ 3,026
Long-term finance lease obligations 1,736 1,198
Construction liabilities 378 467
Tax contingencies 932 510
Long-term deferred tax liabilities 1,084 1,021
Other 1,584 1,188
Total other long-term liabilities $ 9,926 $ 7,410
Capital and Finance 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, 2015
Gross capital lease obligations $ 7,452
Less imputed interest (213)
Present value of net minimum lease payments 7,239
Less current portion of capital lease obligations (3,027)
Total long-term capital lease obligations $ 4,212
We continue to be the deemed owner after occupancy of certain facilities that were constructed as build-to-suit lease
arrangements and previously reflected as “Construction liabilities.” As such, these arrangements are accounted for as finance
leases. Long-term finance lease obligations are as follows (in millions):
December 31, 2015
Gross finance lease obligations $ 2,390
Less imputed interest (555)
Present value of net minimum lease payments 1,835
Less current portion of finance lease obligations (99)
Total long-term finance lease obligations $ 1,736
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. These liabilities primarily relate to
our corporate buildings and fulfillment, sortation, delivery, and data centers.
Tax Contingencies
We have recorded tax reserves for tax contingencies, inclusive of accrued interest and penalties, for U.S. and foreign
income taxes. These contingencies primarily relate to transfer pricing, state income taxes, and research and development
credits. See “Note 10—Income Taxes” for discussion of tax contingencies.