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I had about 400 books on my old Kindle when it crapped out. It was just a broken 5-way knob so I was able to copy my files out. When copying over to the new Kindle, the collections were gone. But there's an option to import collections from another Kindle. From Amazon's site:
To import a collection from another Kindle:
-Select "Archived Items" from the Kindle Home screen.
-Select "Add Other Device Collections" from the Archived Items page.
-Select the desired collection to import and select "ok" to confirm.
Note: Importing a collection from another device does not import the books or other items to your Kindle if they aren't downloaded already. However, books already on your Kindle that are associated with a collection will automatically appear under that collection name on your Home screen.
Worked like a charm for me, even for books I didn't get through Amazon. So I guess the short answer is that your collection info is backed up automatically.
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