Amazon.com (AMZN)

Accrued Expenses and Other Current Liabilities

Included in “Accrued expenses and other current liabilities” at September 30, 2006 and December 31, 2005 are liabilities of $135 million and $131 million for unredeemed gift certificates. We recognize revenue from a

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AMAZON.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(unaudited)

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 Current Liabilities

Included in “Accrued expenses and other current liabilities” at June 30, 2006 and December 31, 2005 are liabilities of $126 million and $131 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 Current Liabilities

Included in “Accrued expenses and other current liabilities” at March 31, 2006 and December 31, 2005 are liabilities of $119 million and $131 million for unredeemed gift certificates.

Accrued Expenses and Other Current Liabilities

Included in “Accrued expenses and other current liabilities” at December 31, 2005 and 2004 are liabilities of $131 million and $107 million for unredeemed gift certificates.