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SEC Filings

10-K
AMAZON COM INC filed this Form 10-K on 01/30/2013
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Operating income (loss) is expected to be between $(285) million and $65 million, compared to $192 million in the prior year period.

 

   

This guidance includes approximately $285 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates.

 

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risk for the effect of interest rate changes, foreign currency fluctuations, and changes in the market values of our investments. Information relating to quantitative and qualitative disclosures about market risk is set forth below and in Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.”

Interest Rate Risk

Our exposure to market risk for changes in interest rates relates primarily to our investment portfolio and our long-term debt. All of our cash equivalent and marketable fixed income securities are designated as available for sale and, accordingly, are presented at fair value on our consolidated balance sheets. We generally invest our excess cash in investment grade short- to intermediate-term fixed income securities and AAA-rated money market funds. Fixed rate securities may have their fair market value adversely affected due to a rise in interest rates, and we may suffer losses in principal if forced to sell securities that have declined in market value due to changes in interest rates.

The following table provides information about our current and long-term cash equivalent and marketable fixed income securities, including principal cash flows by expected maturity and the related weighted average interest rates at December 31, 2012 (in millions, except percentages):

 

     2013     2014     2015     2016     2017     Thereafter     Total     Estimated
Fair Value at
December 31,
2012
 

Money market funds

   $ 5,561      $ —        $ —        $ —        $ —        $ —        $ 5,561      $ 5,561   

Weighted average interest rate

     0.12     0.00     0.00     0.00     0.00     0.00     0.12  

Corporate debt securities

     223        243        204        27        —          —          697        725   

Weighted average interest rate

     0.45     0.62     0.84     1.25     0.00     0.00     0.65  

U.S. Government and Agency Securities

     771        561        433        20        5        —          1,790        1,810   

Weighted average interest rate

     0.30     0.43     0.65     1.12     1.00     0.00     0.43  

Asset backed securities

     26        16        7        —          —          —          49        49   

Weighted average interest rate

     0.48     0.69     0.67     0.00     0.00     0.00     0.58  

Foreign government and agency securities

     141        228        340        30        —          —          739        772   

Weighted average interest rate

     0.18     0.10     0.12     0.06     0.00     0.00     0.12  

Other securities

     8        9        10        5        —          —          32        33   

Weighted average interest rate

     0.88     0.68     0.80     1.08     0.00     0.00     0.83  
   $ 6,730      $ 1,057      $ 994      $ 82      $ 5      $ —        $ 8,868     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Cash equivalents and marketable fixed-income securities

                 $ 8,950   
                

 

 

 

 

33

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