Amazon.com (AMZN)

Subsequent Events

We have evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through January 28, 2010, the day the financial statements were issued.

Note 15—SUBSEQUENT EVENTS (UNAUDITED)

On March 7, 2005, we redeemed 200 million Euros principal of our 6.875% PEACS for a cash payment of $266 million, which includes $1 million of interest from and including February 16 through March 6, 2005. Under the Indenture, no premium was required. As of March 7, 2005, the outstanding principal amount of our 6.875% PEACS was 490 million Euros ($649 million using the Euro to U.S. Dollar exchange rate on that date).

Regarding litigation matters, in March 2005, we signed a Stipulation of Settlement with counsel representing the alleged plaintiff class, with respect to the 1934 Act claims in the Securities Class Actions. If approved by the court, the settlement would dispose of all claims arising under the 1934 Act, but not the 1933 Act, in exchange for a payment of $27,500,000, most if not all of which we expect to be funded by our insurers. In the Pinpoint litigation, the lawsuit was refiled in March 2005 in the U.S. District Court for the Northern District of Illinois after being dismissed without prejudice by the same court in December 2004. In the Cendant litigation, Cendant voluntarily withdrew its complaint without prejudice in February 2005. However, we expect the plaintiff to refile the claims unless they are otherwise settled or disposed of. See “Note 5—Commitments and Contingencies—Legal Proceedings.”

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