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SEC Filings

10-K
AMAZON COM INC filed this Form 10-K on 01/30/2013
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expiration of the U.S. federal research and development credit at the end of 2011. These items collectively caused our annual effective tax rate to be higher than both the 35% U.S. federal statutory rate and our effective tax rates in 2011 and 2010.

In 2011 and 2010, the favorable impact of earnings in lower tax rate jurisdictions offset the adverse impact of foreign jurisdiction losses and as a result, the effective tax rate in both years was lower than the 35% U.S. federal statutory rate.

Deferred income tax assets and liabilities are as follows (in millions):

 

     Year Ended
December  31,
 
     2012     2011  

Deferred tax assets:

    

Net operating losses U.S. - Federal/States (1)

   $ 47      $ 43   

Net operating losses foreign (2)

     289        113   

Accrued liabilities, reserves, & other expenses

     482        412   

Stock-based compensation

     281        178   

Deferred revenue

     129        41   

Assets held for investment

     129        64   

Other items

     133        98   

Tax credits (3)

     12        7   
  

 

 

   

 

 

 

Total gross deferred tax assets

     1,502        956   

Less valuation allowance (4)

     (415     (227
  

 

 

   

 

 

 

Deferred tax assets, net of valuation allowance

     1,087        729   

Deferred tax liabilities:

    

Depreciation & amortization

     (698     (572

Acquisition related intangible assets

     (274     (231

Other items

     (29     (21
  

 

 

   

 

 

 

Net deferred tax assets (liabilities), net of valuation allowance

   $ 86      $ (95
  

 

 

   

 

 

 

 

(1) Excluding $9 million and $116 million of deferred tax assets at December 31, 2012 and 2011, related to net operating losses that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity.
(2) Excluding $2 million and $13 million of deferred tax assets at December 31, 2012 and 2011, related to net operating losses that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity.
(3) Excluding $146 million and $278 million of deferred tax assets at December 31, 2012 and 2011, related to tax credits that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity.
(4) Relates primarily to deferred tax assets that would only be realizable upon the generation of future capital gains and net income in certain foreign taxing jurisdictions.

As of December 31, 2012, our federal, foreign, and state net operating loss carryforwards for income tax purposes were approximately $89 million, $1.1 billion, and $606 million. The federal and state net operating loss carryforwards are subject to limitations under Section 382 of the Internal Revenue Code and applicable state tax law. If not utilized, a portion of the federal, foreign, and state net operating loss carryforwards will begin to expire in 2026, 2013, and 2013, respectively. As of December 31, 2012, our tax credit carryforwards for income tax purposes were approximately $158 million. If not utilized, a portion of the tax credit carryforwards will begin to expire in 2020.

 

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