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AMZN » Topics » Commitments

This excerpt taken from the AMZN 10-K filed Jan 29, 2010.

Commitments

We lease office, fulfillment center, and data center facilities and fixed assets under non-cancelable operating and capital leases. Rental expense under operating lease agreements was $171 million, $158 million, and $141 million for 2009, 2008, and 2007.

In December 2007, we entered into a series of leases and other agreements for the lease of corporate office space to be developed in Seattle, Washington with initial terms of up to 16 years commencing on completion of development between 2010 and 2013, with options to extend for two five-year periods. We expect to occupy approximately 1.7 million square feet of office space. We also have an option to lease up to an additional approximately 500,000 square feet at rates based on fair market values at the time the option is exercised, subject to certain conditions. In addition, if interest rates exceed a certain threshold, we have the option to provide financing for some of the buildings.

 

58

Table of Contents

AMAZON.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

The following summarizes our principal contractual commitments, excluding open orders for inventory purchases that support normal operations, as of December 31, 2009:

 

     Year Ended December 31,    Thereafter    Total
     2010    2011    2012    2013    2014      
     (in millions)

Operating and capital commitments:

                     

Debt principal and interest

    $ 31    $ 47    $ 36    $ 36    $ —      $ —      $ 150

Capital leases, including interest

      130      95      44      8      3      —        280

Operating leases

      162      146      130      122      115      317      992

Other commitments (1)(2)

      187      101      93      89      88      1,181      1,739
                                                

Total commitments

    $ 510    $ 389    $ 303    $ 255    $ 206    $ 1,498    $ 3,161
                                                

 

(1) Includes the estimated timing and amounts of payments for rent, operating expenses, and tenant improvements associated with approximately 1.7 million square feet of corporate office space. The amount of space available and our financial and other obligations under the lease agreements are affected by various factors, including government approvals and permits, interest rates, development costs and other expenses and our exercise of certain rights under the lease agreements.
(2) Excludes $181 million of tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any.
This excerpt taken from the AMZN 10-Q filed Apr 26, 2007.

Commitments

We lease office and fulfillment center facilities and fixed assets under non-cancelable operating and capital leases. Rental expense under operating lease agreements was $34 million and $39 million for Q1 2007 and Q1 2006.

The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations, as of March 31, 2007:

 

     Nine Months
Ended
December 31,
2007		    Year Ended December 31,    Thereafter    Total
        2008    2009    2010    2011      
     (in millions)

Operating and capital commitments:

                     

Debt principal (1)

    $ 16    $ —      $ 930    $ 321    $ —      $ —      $ 1,267

Debt interest (1)

      23      66      44      22      —        —        155

Capital leases, including interest

      29      11      9      5      4      5      63

Operating leases

      99      118      96      79      58      219      669

Other commitments

      19      4      8      6      1      21      59
                                                

Total commitments

    $ 186    $ 199    $ 1,087    $ 433    $ 63    $ 245    $ 2,213
                                                
(1) Under our 6.875% PEACS, the principal payment due in 2010 and the annual interest payments fluctuate based on the Euro/U.S. Dollar exchange ratio. At March 31, 2007, the Euro to U.S. Dollar exchange rate was 1.3355. Due to changes in the Euro/U.S. Dollar exchange ratio, our remaining principal debt obligation under this instrument since issuance in February 2000 has increased by $84 million as of March 31, 2007. The principal and interest commitments reflect the partial redemptions of the 6.875% PEACS and 4.75% Convertible Subordinated Notes.
This excerpt taken from the AMZN 10-K filed Feb 16, 2007.

Commitments

We lease office and fulfillment center facilities and fixed assets under non-cancelable operating and capital leases. Rental expense under operating lease agreements was $132 million, $84 million, and $55 million for 2006, 2005, and 2004.

The following summarizes our principal contractual commitments, excluding open orders for inventory purchases that support normal operations, as of December 31, 2006:

 

     2007    2008    2009    2010    2011    Thereafter    Total
     (in millions)

Operating and capital commitments:

                     

Debt principal and other (1)

    $ 17    $ —      $ 930    $ 317    $ —      $ —      $ 1,264

Debt interest (1)

      66      66      44      22      —        —        198

Capital leases, including interest

      35      7      5      4      4      5      60

Operating leases

      129      113      91      72      50      184      639

Other commitments

      20      5      8      6      1      19      59
                                                

Total commitments

    $ 267    $ 191    $ 1,078    $ 421    $ 55    $ 208    $ 2,220
                                                
(1) Under our 6.875% PEACS, the principal payment due in 2010 and the annual interest payments fluctuate based on the Euro/U.S. Dollar exchange ratio. At December 31, 2006, the Euro to U.S. Dollar exchange rate was 1.3201. Due to changes in the Euro/U.S. Dollar exchange ratio, our remaining principal debt obligation under this instrument since issuance in February 2000 has increased by $80 million as of December 31, 2006. The principal and interest commitments at December 31, 2006 reflect the partial redemptions of the 6.875% PEACS and 4.75% Convertible Subordinated Notes.
This excerpt taken from the AMZN 10-Q filed Oct 26, 2006.

Commitments

We lease office and fulfillment center facilities and fixed assets under non-cancelable operating and capital leases. Rental expense under operating lease agreements was $21 million and $20 million for Q3 2006 and Q3 2005, and $99 million and $53 million for the nine months ended September 30, 2006 and 2005.

The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations, as of September 30, 2006:

 

    

Three Months

Ending

December 31,

2006

    Year Ended December 31,          
        2007    2008    2009    2010    Thereafter    Total
     (in millions)

Operating and capital commitments:

                     

Debt principal and other (1)

    $ 11    $ 74    $ 9    $ 910    $ 344    $ 24    $ 1,372

Debt interest (1)

      1      66      65      43      21      —        196

Operating leases (2) (3)

      33      119      107      89      70      224      642
                                                

Total commitments

    $ 45    $ 259    $ 181    $ 1,042    $ 435    $ 248    $ 2,210
                                                
(1) Under our 6.875% PEACS, the principal payment due in 2010 and the annual interest payments fluctuate based on the Euro/U.S. Dollar exchange ratio. At September 30, 2006, the Euro to U.S. Dollar exchange rate was 1.2674. Due to changes in the Euro/U.S. Dollar exchange ratio, our remaining principal debt obligation under this instrument since issuance in February 2000 has increased by $68 million as of September 30, 2006.
(2) Pursuant to SFAS 13, Accounting for Leases, lease agreements are categorized at their inception as either operating or capital leases depending on certain defined criteria. Although operating leases represent obligations for us, pursuant to SFAS 13 they are not reflected on our consolidated balance sheets. Of the $642 million remaining obligations under operating leases, $40 million relates to equipment operating leases. If we had applied to our equipment operating leases the same convention used for capital leases, which, however, would not be in accordance with GAAP, we would have recorded approximately $35 million of additional obligations on our consolidated balance sheets.
(3) Includes $8 million related to restructuring-related leases and other commitments, consisting of $4 million due within 12 months and included in “Accrued expenses and other current liabilities,” and $4 million due after 12 months and included in “Long-term debt and other” on our consolidated balance sheets. These amounts are net of anticipated sublease income of $4 million.

 

11

Table of Contents

AMAZON.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(unaudited)

 

This excerpt taken from the AMZN 10-Q filed Jul 27, 2006.

Commitments

We lease office and fulfillment center facilities and fixed assets under non-cancelable operating and capital leases. Rental expense under operating lease agreements was $39 million and $17 million for Q2 2006 and Q2 2005, and $77 million and $32 million for the six months ended June 30, 2006 and 2005.

The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations, as of June 30, 2006:

 

     Six Months
Ending
December 31,
2006		    Year Ended December 31,    Thereafter    Total
        2007    2008    2009    2010      
     (in millions)

Operating and capital commitments:

                     

Debt principal and other (1)

    $ 22    $ 51    $ 4    $ 904    $ 346    $ 24    $ 1,351

Debt interest (1)

      21      64      64      43      21      —        213

Operating leases (2) (3)

      75      131      100      80      59      193      638
                                                

Total commitments

    $ 118    $ 246    $ 168    $ 1,027    $ 426    $ 217    $ 2,202
                                                
(1) Under our 6.875% PEACS, the principal payment due in 2010 and the annual interest payments fluctuate based on the Euro/U.S. Dollar exchange ratio. At June 30, 2006, the Euro to U.S. Dollar exchange rate was 1.2793. Due to changes in the Euro/U.S. Dollar exchange ratio, our remaining principal debt obligation under this instrument since issuance in February 2000 has increased by $70 million as of June 30, 2006.
(2) Pursuant to SFAS 13, Accounting for Leases, lease agreements are categorized at their inception as either operating or capital leases depending on certain defined criteria. Although operating leases represent obligations for us, pursuant to SFAS 13 they are not reflected on our consolidated balance sheets. Of the $638 million remaining obligations under operating leases, $80 million relates to equipment operating leases. If we had applied to our equipment operating leases the same convention used for capital leases, which, however, would not be in accordance with GAAP, we would have recorded approximately $72 million of additional obligations on our consolidated balance sheets.

 

10

Table of Contents

AMAZON.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(unaudited)

 

(3) Includes $8 million related to restructuring-related leases and other commitments, consisting of $4 million due within 12 months and included in “Accrued expenses and other current liabilities,” and $4 million due after 12 months and included in “Long-term debt and other” on our consolidated balance sheets. These amounts are net of anticipated sublease income of $5 million.
This excerpt taken from the AMZN 10-Q filed Apr 27, 2006.

Commitments

We lease office and fulfillment center facilities and fixed assets under non-cancelable operating and capital leases. Rental expense under operating lease agreements was $39 million and $15 million for Q1 2006 and Q1 2005.

The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations, as of March 31, 2006:

 

    

Nine Months
Ending
December 31,

2006

    Year Ended December 31,          
        2007    2008    2009    2010    Thereafter    Total
     (in millions)

Operating and capital commitments:

                     

Debt principal and other (1)

    $ 14    $ 20    $ 2    $ 902    $ 298    $ 17    $ 1,253

Debt interest (1)

      21      62      62      41      20      —        206

Capital leases

      2      2      2      2      1      3      12

Operating leases (2)(3)

      105      126      86      73      56      172      618
                                                

Total commitments

    $ 142    $ 210    $ 152    $ 1,018    $ 375    $ 192    $ 2,089
                                                
(1) Under our 6.875% PEACS, the principal payment due in 2010 and the annual interest payments fluctuate based on the Euro/U.S. Dollar exchange ratio. At March 31, 2006, the Euro to U.S. Dollar exchange rate was 1.2115. Due to changes in the Euro/U.S. Dollar exchange ratio, our remaining principal debt obligation under this instrument since issuance in February 2000 has increased by $54 million as of March 31, 2006.
(2) Pursuant to SFAS 13, Accounting for Leases, lease agreements are categorized at their inception as either operating or capital leases depending on certain defined criteria. Although operating leases represent obligations for us, pursuant to SFAS 13 they are not reflected on our consolidated balance sheets. Of the $618 million remaining obligations under operating leases, $97 million relates specifically to equipment operating leases. If we had applied to our equipment operating leases the same convention used for capital leases, which, however, would not be in accordance with GAAP, we would have recorded approximately $91 million of additional obligations on our consolidated balance sheets.
(3) Includes $8 million related to restructuring-related leases and other commitments, consisting of $4 million due within 12 months and included in “Accrued expenses and other current liabilities,” and $4 million due after 12 months and included in “Long-term debt and other” on our consolidated balance sheets. These amounts are net of anticipated sublease income of $4 million.

 

10

Table of Contents

AMAZON.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(unaudited)

 

EXCERPTS ON THIS PAGE:

10-K
Jan 29, 2010
10-Q
Apr 26, 2007
10-K
Feb 16, 2007
10-Q
Oct 26, 2006
10-Q
Jul 27, 2006
10-Q
Apr 27, 2006

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