Amazon.com (AMZN)

Interest Expense and Income

The primary component of our net interest expense is the interest we incurred on our long-term debt instruments. Interest expense was $12 million and $22 million during Q1 2009 and Q1 2008 with the decline primarily relating to principal reductions on our long-term debt.

Our interest income was $12 million and $26 million during Q1 2009 and Q1 2008. We generally invest our excess cash in investment grade short- to intermediate-term fixed income securities and AAA-rated money market funds. Our interest income corresponds with the average balance of invested funds and the prevailing rates we are earning on them, which vary depending on the geographies and currencies in which they are invested.

Interest Expense and Income

The primary component of our net interest expense is the interest we incur on our long-term debt instruments, including our 4.75% Convertible Subordinated Notes, which were no longer outstanding at December 31, 2008, and our 6.875% PEACS, which had a principal balance of €240 million ($335 million based on the exchange rate) at December 31, 2008. Interest expense was $71 million, $77 million, and $78 million, in 2008, 2007, and 2006 with the decline primarily relating to principal reductions of $899 million in 2008 and $300 million in 2006.

Our total debt was $468 million and $1.3 billion at December 31, 2008 and 2007. See Item 8 of Part II, “Financial Statements and Supplementary Data—Note 5—Long-Term Debt.”

Our interest income was $83 million, $90 million, and $59 million during 2008, 2007, and 2006. We generally invest our excess cash in investment grade short- to intermediate-term fixed income securities and AAA-rated money market funds. Our interest income corresponds with the average balance of invested funds and the prevailing rates we are earning on them, which vary depending on the geographies and currencies in which they are invested.

Interest Expense and Income

The primary component of our net interest expense is the interest we incur on our long-term debt instruments, including €240 million ($338 million based on the exchange rate at September 30, 2008) principal balance of our 6.875% PEACS at September 30, 2008. Interest expense was $17 million and $19 million during Q3 2008 and Q3 2007, and $60 million and $57 million for the nine months ended September 30, 2008 and 2007.

Our total debt was $435 million (including the current portion of $42 million) at September 30, 2008, and $1.3 billion at December 31, 2007. See Item 1 of Part I, “Financial Statements — Note 3 — Long-Term Debt.”

Our interest income was $21 million and $23 million during Q3 2008 and Q3 2007, and $67 million and $62 million for the nine months ended September 30, 2008 and 2007. We generally invest our excess cash in investment grade short- to intermediate-term fixed income securities and AAA-rated money market funds. Our interest income corresponds with the average balance of invested funds and the prevailing rates we are earning on them, which vary depending on the geographies and currencies in which they are invested.

Interest Expense and Income

The primary component of our net interest expense is the interest we incur on our long-term debt instruments, including $399 million principal balance of our 4.75% Convertible Subordinated Notes and €240 million ($378 million based on the exchange rate at June 30, 2008) principal balance of our 6.875% PEACS at June 30, 2008. Interest expense was $21 million and $19 million during Q2 2008 and Q2 2007, and $43 million and $38 million for the six months ended June 30, 2008 and 2007.

Our total debt was $874 million (including the current portion of $441 million) at June 30, 2008, and $1.3 billion at December 31, 2007. See Item 1 of Part I, “Financial Statements — Note 3 — Long-Term Debt.”

Our interest income was $20 million during both Q2 2008 and Q2 2007, and $46 million and $39 million for the six months ended June 30, 2008 and 2007. We generally invest our excess cash in investment grade short- to intermediate-term fixed income securities and AAA-rated money market mutual funds. Our interest income corresponds with the average balance of invested funds and the prevailing rates we are earning on them, which vary depending on the geographies and currencies in which they are invested.

Interest Expense and Income

The primary component of our net interest expense is the interest we incur on our long-term debt instruments, including $899 million principal balance of our 4.75% Convertible Subordinated Notes and €240 million ($379 million based on the exchange rate at March 31, 2008) principal balance of our 6.875% PEACS at March 31, 2008. Interest expense was $22 million and $19 million during Q1 2008 and Q1 2007.

Our total debt was $1.4 billion (including the current portion of $906 million) at March 31, 2008, and $1.3 billion at December 31, 2007. See Item 1 of Part I, “Financial Statements — Note 3 — Long-Term Debt.”

Our interest income was $26 million and $20 million during Q1 2008 and Q1 2007. We generally invest our excess cash in investment grade short- to intermediate-term fixed income securities and AAA-rated money market mutual funds. Our interest income corresponds with the average balance of invested funds and the prevailing rates we are earning on them, which vary depending on the geographies and currencies in which they are invested.

Interest Expense and Income

The primary component of our net interest expense is the interest we incur on our long-term debt instruments, including a $899 million principal balance of our 4.75% Convertible Subordinated Notes and a €240 million ($350 million based on the exchange rate at December 31, 2007) principal balance of our 6.875% PEACS at December 31, 2007. Interest expense was $77 million, $78 million, and $92 million in 2007, 2006, and 2005, with declines primarily relating to principal repayments of $300 million and $265 million in 2006 and 2005.

Our total long-term indebtedness was $1.3 billion at both December 31, 2007 and 2006. See Item 8 of Part II, “Financial Statements and Supplementary Data—Note 4—Long-Term Debt.”

Our interest income was $90 million, $59 million, and $44 million during 2007, 2006, and 2005. We generally invest our excess cash in investment grade short- to intermediate-term fixed income securities and AAA-rated money market mutual funds. Our interest income corresponds with the average balance of invested funds and the prevailing rates we are earning on them, which vary depending on the geographies and currencies in which they are invested.

Interest Expense and Income

The primary component of our net interest expense is the interest we incur on our long-term debt instruments, including a $899
million principal balance of our 4.75% Convertible Subordinated Notes and a €240 million ($350 million based on the exchange rate at December 31, 2007) principal balance of our 6.875% PEACS at December 31, 2007. Interest expense
was $77 million, $78 million, and $92 million in 2007, 2006, and 2005, with declines primarily relating to principal repayments of $300 million and $265 million in 2006 and 2005.

Interest Expense and Income

The primary component of our net interest expense is the interest we incur on our long-term debt instruments, including $899 million principal balance of our 4.75% Convertible Subordinated Notes and €240 million ($342 million based on the exchange rate at September 30, 2007) principal balance of our 6.875% PEACS at September 30, 2007. Interest expense was $19 million and $21 million during Q3 2007 and Q3 2006, and $57 million and $58 million for the nine months ended September 30, 2007 and 2006.

Our total long-term debt was $1.27 billion and $1.25 billion at September 30, 2007 and December 31, 2006. See Item 1 of Part I, “Financial Statements — Note 3 — Long-Term Debt.”

Our interest income was $23 million and $14 million during Q3 2007 and Q3 2006, and $62 million and $41 million for the nine months ended September 30, 2007 and 2006. We generally invest our excess cash in investment grade short- to intermediate-term fixed income securities and AAA-rated money market mutual funds. Our interest income corresponds with the average balance of invested funds and the prevailing rates we are earning on them, which vary depending on the geographies and currencies in which they are invested.

Interest Expense and Income

The primary component of our net interest expense is the interest we incur on our long-term debt instruments, including $900 million principal balance of our 4.75% Convertible Subordinated Notes and €240 million ($325 million based on the exchange rate at June 30, 2007) principal balance of our 6.875% PEACS at June 30, 2007. Interest expense was $19 million in both Q2 2007 and Q2 2006, and $38 million for both the six months ended June 30, 2007 and 2006.

Our total long-term debt was $1.26 billion and $1.25 billion at June 30, 2007 and December 31, 2006. See Item 1 of Part I, “Financial Statements — Note 3 — Long-Term Debt.”

Our interest income was $20 million and $13 million during Q2 2007 and Q2 2006, and $39 million and $27 million for the six months ended June 30, 2007 and 2006. We generally invest our excess cash in investment grade short- to intermediate-term fixed income securities and AAA-rated money market mutual funds. Our interest income corresponds with the average balance of invested funds and the prevailing rates we are earning on them, which vary depending on the geographies and currencies in which they are invested.

Interest Expense and Income

The primary component of our net interest expense is the interest we incur on our long-term debt instruments, including $900 million principal balance of our 4.75% Convertible Subordinated Notes and €240 million ($321 million based on the exchange rate at March 31, 2007) principal balance of our 6.875% PEACS at March 31, 2007. Interest expense was $19 million and $21 million in Q1 2007 and Q1 2006, with declines primarily relating to principal repayment of €250 million in Q1 2006.

Our total long-term debt was $1.25 billion at both March 31, 2007 and December 31, 2006. See Item 1 of Part I, “Financial Statements — Note 3 — Long-Term Debt.”

Our interest income was $20 million and $15 million during Q1 2007 and Q1 2006. We generally invest our excess cash in investment grade short- to intermediate-term fixed income securities and AAA-rated money market mutual funds. Our interest income corresponds with the average balance of invested funds and the prevailing rates we are earning on them, which vary depending on the geographies and currencies in which they are invested.

Interest Expense and Income

The primary component of our net interest expense is the interest we incur on our long-term debt instruments, including a $900 million principal balance of our 4.75% U.S. Convertible Subordinated Notes and a

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€240 million ($317 million based on the exchange rate at December 31, 2006) principal balance of our 6.875% PEACS at December 31, 2006. Interest expense was $78 million, $92 million, and $107 million in 2006, 2005, and 2004, with declines primarily relating to principal repayments of $300 million, $265 million, and $150 million in 2006, 2005, and 2004.

At December 31, 2006, our total long-term indebtedness was $1.25 billion compared to $1.48 billion at December 31, 2005. See Item 8 of Part II, “Financial Statements and Supplementary Data—Note 4—Long-Term Debt.”

Our interest income was $59 million, $44 million, and $28 million during 2006, 2005, and 2004. We generally invest our excess cash in investment grade short- to intermediate-term fixed income securities and AAA-rated money market mutual funds. Our interest income corresponds with the average balance of invested funds and the prevailing rates we are earning on them, which vary depending on the geographies and currencies in which they are invested.