Amazon.com (AMZN)

Accrued Expenses and Other

Included in “Accrued expenses and other” at December 31, 2009 and 2008 were liabilities of $347 million and $270 million for unredeemed gift certificates. We reduce the liability for a gift certificate when it is applied to an order. If a gift certificate is not redeemed, we recognize revenue when it expires or, for a certificate without an expiration date, when the likelihood of its redemption becomes remote, generally two years from date of issuance.

Accrued Expenses and Other

Included in “Accrued expenses and other” at March 31, 2009 and December 31, 2008 were liabilities of $242 million and $270 million for unredeemed gift certificates. We recognize revenue from a gift certificate when a customer redeems it. If a gift certificate is not redeemed, we recognize revenue when it expires or, for a certificate without an expiration date, when the likelihood of its redemption becomes remote, generally two years from date of issuance.

Accrued Expenses and Other

Included in “Accrued expenses and other” at December 31, 2008 and 2007 were liabilities of $270 million and $230 million for unredeemed gift certificates. We recognize revenue from a gift certificate when a customer redeems it. If a gift certificate is not redeemed, we recognize revenue when it expires or, for a certificate without an expiration date, when the likelihood of its redemption becomes remote, generally two years from date of issuance.

Accrued Expenses and Other

Accrued Expenses and Other

Included in “Accrued expenses and other” at September 30, 2008 and December 31, 2007 were liabilities of $216 million and $230 million for unredeemed gift certificates. We recognize revenue from a gift certificate when a customer redeems it. If a gift certificate is not redeemed, we recognize revenue when it expires or, for a certificate without an expiration date, when the likelihood of its redemption becomes remote, generally two years from date of issuance.

Accrued Expenses and Other

Included in “Accrued expenses and other” at June 30, 2008 and December 31, 2007 were liabilities of $206 million and $230 million for unredeemed gift certificates. We recognize revenue from a gift certificate when a customer redeems it. If a gift certificate is not redeemed, we recognize revenue when it expires or, for a certificate without an expiration date, when the likelihood of its redemption becomes remote, generally two years from date of issuance.

Accrued Expenses and Other

Included in “Accrued expenses and other” at March 31, 2008 and December 31, 2007 were liabilities of $205 million and $230 million for unredeemed gift certificates. We recognize revenue from a gift certificate

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when a customer redeems it. If a gift certificate is not redeemed, we recognize revenue when it expires or, for a certificate without an expiration date, when the likelihood of its redemption becomes remote, generally two years from date of issuance.

Accrued Expenses and Other

Included in “Accrued expenses and other” at December 31, 2007 and 2006 were liabilities of $240 million and $183 million for unredeemed gift certificates. We recognize revenue from a gift certificate when a customer

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AMAZON.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

redeems it. If a gift certificate is not redeemed, we recognize revenue when it expires or, for a certificate without an expiration date, when the likelihood of its redemption becomes remote, generally two years from date of issuance.

Accrued Expenses and Other

Accrued Expenses and Other

Included in “Accrued expenses and other” at September 30, 2007 and December 31, 2006 are liabilities of $178 million and $183 million for unredeemed gift certificates. We recognize revenue from a gift certificate when a customer redeems it. If a gift certificate is not redeemed, we recognize revenue when it expires or, for a certificate without an expiration date, when the likelihood of its redemption becomes remote, generally two years from date of issuance.

Accrued Expenses and Other

Included in “Accrued expenses and other” at June 30, 2007 and December 31, 2006 are liabilities of $173 million and $183 million for unredeemed gift certificates. We recognize revenue from a gift certificate when a customer redeems it. If a gift certificate is not redeemed, we recognize revenue when it expires or, for a certificate without an expiration date, when the likelihood of its redemption becomes remote, generally two years from date of issuance.

Accrued Expenses and Other

Included in “Accrued expenses and other” at March 31, 2007 and December 31, 2006 are liabilities of $168 million and $183 million for unredeemed gift certificates. We recognize revenue from a gift certificate when a customer redeems it. If a gift certificate is not redeemed, we recognize revenue when it expires or, for a certificate without an expiration date, when the likelihood of its redemption becomes remote, generally two years from date of issuance.

Accrued Expenses and Other

Included in “Accrued expenses and other” at December 31, 2006 and 2005 were liabilities of $183 million and $131 million for unredeemed gift certificates. We recognize revenue from a gift certificate when a customer

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AMAZON.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

redeems it. If a gift certificate is not redeemed, we recognize revenue when it expires or, for a certificate without an expiration date, when the likelihood of its redemption becomes remote, generally two years from date of issuance.