Amazon.com Announces Operating Profit, Lowers Book Prices Again and Raises Financial Guidance -- Third Price Cut in Nine Months Effective Today.Business Editors SEATTLE--(BUSINESS WIRE)--Apr. 23, 2002 Amazon.com (Amazon.com, Seattle, WA, www.amazon.com) The largest online shopping site and one of the most widely known e-commerce sites on the Web. Founded by Jeff Bezos in 1995, it had 11 employees by year's end. Within four years, it had more than 1,600 employees and four million customers. , Inc. (NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). :AMZN AMZN Amazon.com (NASDAQ symbol) ) today announced financial results for its first quarter ended March 31, 2002, and further reductions in book prices. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter were $847 million, compared with $700 million in the first quarter of 2001, an increase of 21%. The Company recorded a first quarter 2002 operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $2 million, compared with a loss of $217 million a year ago. Net loss for the first quarter of 2002 was $23 million, or $0.06 per share, compared with a first quarter 2001 net loss of $234 million (including restructuring-related and other charges of $114 million and goodwill amortization of $49 million), or $0.66 per share. Amazon.com exceeded its pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma operating profit goal for the quarter. Pro forma operating profit was $25 million, compared with a loss of $49 million in the first quarter of 2001, an improvement of over $70 million. Pro forma net loss, which includes net interest expense, for the first quarter of 2002 was $5 million, or $0.01 per share, compared with a pro forma net loss of $76 million, or $0.21 per share, in the first quarter of 2001. (Details on the differences between GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). results and pro forma results are included below, with a tabular tab·u·lar adj. 1. Having a plane surface; flat. 2. Organized as a table or list. 3. Calculated by means of a table. tabular resembling a table. reconciliation of those differences included in the attached financial statements.) The Company also announced that, effective today, Amazon.com has lowered book prices again. Customers can now save 30% on books over $15, unless marked otherwise. "Last July July: see month. we lowered book prices to 30% off books over $20, then six months later we introduced free Super Saver Super saver may refer to:
Contraction of we are. we're we are thrilled thrill v. thrilled, thrill·ing, thrills v.tr. 1. To cause to feel a sudden intense sensation; excite greatly. 2. To give great pleasure to; delight. See Synonyms at enrapture. to extend our 30% discount to include books over $15," said Jeff Bezos Jeffrey Preston Bezos (born January 12, 1964 , Albuquerque ) is the founder, president, chief executive officer, and chairman of the board of Amazon.com. Bezos, a Phi Beta Kappa graduate of Princeton University, worked as a financial analyst for D. E. Shaw & Co. , founder and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Amazon.com. "We said we're the type of retailer that relentlessly works to lower prices for customers, but we didn't did·n't Contraction of did not. didn't did not didn't do expect to be able to do it again so soon." "We are ahead of schedule financially. Our continued operational progress and momentum allow us to further lower prices for customers and at the same time increase our 2002 guidance," said Warren Warren. 1 City (1990 pop. 144,864), Macomb co., SE Mich., a suburb of Detroit; est. 1837, inc. as a city 1957. It is an important metalworking center where steel is processed. Jenson Jenson is a surname, and may refer to:
1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have the best of all worlds -- lower prices for customers, better customer service and lower costs -- all driving us toward our objective of free cash flow for the year." Highlights of First Quarter Results (comparisons are with the equivalent period of 2001) -- Our segment reporting includes four segments: U.S. Books, Music and DVD/Video; U.S. Electronics, Tools and Kitchen; International; and Services. Allocation methodologies have been consistently applied. -- The U.S. Books, Music and DVD/Video segment includes revenues, direct costs and cost allocations associated with retail sales from www.amazon.com for books, music, DVDs, video products and magazine subscriptions, and from stores offering these products through our Syndicated Stores Program (whereby a third-party seller's e-commerce Web site uses our e-commerce services and tools, and offers our product selection), such as www.borders.com. This segment also includes commissions and other amounts earned from sales of these products, new or used, through Amazon Marketplace, and will include amounts earned from offerings of these products by third-party sellers, if any, under our Merchant@amazon.com Program (whereby a third-party seller offers its products or services for sale on our Web site, either in our retail stores or in a cobranded store on our Web site, or both). -- The U.S. Electronics, Tools and Kitchen segment includes revenues, direct costs and cost allocations associated with www.amazon.com retail sales of electronics, computers, kitchen products and housewares, camera and photo items, software, cell phones and service, tools and hardware, outdoor living items, and computer and video game products, sold other than through our Toysrus.com strategic alliance, as well as catalog sales of toys and tools and hardware, and will include stores offering these products, if any, through our Syndicated Stores Program. This segment also includes commissions earned from sales of these products, new or used, through Amazon Marketplace and from offerings of these products by third-party sellers under our Merchant@amazon.com Program, such as Circuit City. -- The International segment includes all revenues, direct costs and cost allocations associated with the retail sales of our four internationally focused Web sites--www.amazon.de, www.amazon.fr, www.amazon.co.jp and www.amazon.co.uk--and from stores offering products through our Syndicated Stores Program. This segment also includes commissions and other amounts earned from sales of products, new or used, through Amazon Marketplace, and amounts earned from offerings of products by third-party sellers, if any, under our Merchant@amazon.com Program. -- The Services segment includes revenues, direct costs and cost allocations associated with our business-to-business strategic alliances, including the Merchant Program (whereby a third-party seller's e-commerce Web site operates at its own URL using our features and technology), such as www.target.com beginning summer 2002, and, to the extent full product categories are not also offered by our online retail stores, the Merchant@amazon.com Program, such as our strategic alliance with Toysrus.com, as well as the strategic technology alliance with America Online, Inc. This segment also includes Amazon Auctions, zShops and Payments, and miscellaneous marketing and promotional agreements. -- All references to customers mean customer accounts, which are unique e-mail addresses, established either when a customer's initial order is shipped or when a customer orders from certain third-party sellers on Amazon.com. Customer accounts include customers of Amazon Marketplace, Auctions and zShops services and from our Merchant@amazon.com and Syndicated Stores Programs, but exclude Amazon.com Payments customers, our catalog customers and the customers of selected companies with whom we have strategic marketing and promotional relationships. -- Trailing twelve-month net sales per active customer account figures include all amounts earned through Internet sales, including net sales earned from new or used products sold through Amazon Marketplace, Auctions and zShops services, and products sold through our Merchant@amazon.com and Syndicated Stores Programs, but excluding products sold through our catalogs and certain strategic alliances and sales of inventory to Toysrus.com. A customer is considered active upon placing an order. Financial Guidance The following forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. reflect Amazon Amazon, in Greek mythology Amazon (ăm`əzŏn), in Greek mythology, one of a tribe of warlike women who lived in Asia Minor. .com's expectations as of April 23, 2002. Results may be materially affected by many factors, such as potential changes in general economic conditions and consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. , the emerging nature and rate of growth of the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and online commerce, and the various factors detailed below. Second Quarter 2002 Expectations -- Our segment reporting includes four segments: U.S. Books, Music and DVD/Video; U.S. Electronics, Tools and Kitchen; International; and Services. Allocation methodologies have been consistently applied. -- The U.S. Books, Music and DVD/Video segment includes revenues, direct costs and cost allocations associated with retail sales from www.amazon.com for books, music, DVDs, video products and magazine subscriptions, and from stores offering these products through our Syndicated Stores Program (whereby a third-party seller's e-commerce Web site uses our e-commerce services and tools, and offers our product selection), such as www.borders.com. This segment also includes commissions and other amounts earned from sales of these products, new or used, through Amazon Marketplace, and will include amounts earned from offerings of these products by third-party sellers, if any, under our Merchant@amazon.com Program (whereby a third-party seller offers its products or services for sale on our Web site, either in our retail stores or in a cobranded store on our Web site, or both). -- The U.S. Electronics, Tools and Kitchen segment includes revenues, direct costs and cost allocations associated with www.amazon.com retail sales of electronics, computers, kitchen products and housewares, camera and photo items, software, cell phones and service, tools and hardware, outdoor living items, and computer and video game products, sold other than through our Toysrus.com strategic alliance, as well as catalog sales of toys and tools and hardware, and will include stores offering these products, if any, through our Syndicated Stores Program. This segment also includes commissions earned from sales of these products, new or used, through Amazon Marketplace and from offerings of these products by third-party sellers under our Merchant@amazon.com Program, such as Circuit City. -- The International segment includes all revenues, direct costs and cost allocations associated with the retail sales of our four internationally focused Web sites--www.amazon.de, www.amazon.fr, www.amazon.co.jp and www.amazon.co.uk--and from stores offering products through our Syndicated Stores Program. This segment also includes commissions and other amounts earned from sales of products, new or used, through Amazon Marketplace, and amounts earned from offerings of products by third-party sellers, if any, under our Merchant@amazon.com Program. -- The Services segment includes revenues, direct costs and cost allocations associated with our business-to-business strategic alliances, including the Merchant Program (whereby a third-party seller's e-commerce Web site operates at its own URL using our features and technology), such as www.target.com beginning summer 2002, and, to the extent full product categories are not also offered by our online retail stores, the Merchant@amazon.com Program, such as our strategic alliance with Toysrus.com, as well as the strategic technology alliance with America Online, Inc. This segment also includes Amazon Auctions, zShops and Payments, and miscellaneous marketing and promotional agreements. -- All references to customers mean customer accounts, which are unique e-mail addresses, established either when a customer's initial order is shipped or when a customer orders from certain third-party sellers on Amazon.com. Customer accounts include customers of Amazon Marketplace, Auctions and zShops services and from our Merchant@amazon.com and Syndicated Stores Programs, but exclude Amazon.com Payments customers, our catalog customers and the customers of selected companies with whom we have strategic marketing and promotional relationships. -- Trailing twelve-month net sales per active customer account figures include all amounts earned through Internet sales, including net sales earned from new or used products sold through Amazon Marketplace, Auctions and zShops services, and products sold through our Merchant@amazon.com and Syndicated Stores Programs, but excluding products sold through our catalogs and certain strategic alliances and sales of inventory to Toysrus.com. A customer is considered active upon placing an order. Full Year 2002 Expectations -- Our segment reporting includes four segments: U.S. Books, Music and DVD/Video; U.S. Electronics, Tools and Kitchen; International; and Services. Allocation methodologies have been consistently applied. -- The U.S. Books, Music and DVD/Video segment includes revenues, direct costs and cost allocations associated with retail sales from www.amazon.com for books, music, DVDs, video products and magazine subscriptions, and from stores offering these products through our Syndicated Stores Program (whereby a third-party seller's e-commerce Web site uses our e-commerce services and tools, and offers our product selection), such as www.borders.com. This segment also includes commissions and other amounts earned from sales of these products, new or used, through Amazon Marketplace, and will include amounts earned from offerings of these products by third-party sellers, if any, under our Merchant@amazon.com Program (whereby a third-party seller offers its products or services for sale on our Web site, either in our retail stores or in a cobranded store on our Web site, or both). -- The U.S. Electronics, Tools and Kitchen segment includes revenues, direct costs and cost allocations associated with www.amazon.com retail sales of electronics, computers, kitchen products and housewares, camera and photo items, software, cell phones and service, tools and hardware, outdoor living items, and computer and video game products, sold other than through our Toysrus.com strategic alliance, as well as catalog sales of toys and tools and hardware, and will include stores offering these products, if any, through our Syndicated Stores Program. This segment also includes commissions earned from sales of these products, new or used, through Amazon Marketplace and from offerings of these products by third-party sellers under our Merchant@amazon.com Program, such as Circuit City. -- The International segment includes all revenues, direct costs and cost allocations associated with the retail sales of our four internationally focused Web sites--www.amazon.de, www.amazon.fr, www.amazon.co.jp and www.amazon.co.uk--and from stores offering products through our Syndicated Stores Program. This segment also includes commissions and other amounts earned from sales of products, new or used, through Amazon Marketplace, and amounts earned from offerings of products by third-party sellers, if any, under our Merchant@amazon.com Program. -- The Services segment includes revenues, direct costs and cost allocations associated with our business-to-business strategic alliances, including the Merchant Program (whereby a third-party seller's e-commerce Web site operates at its own URL using our features and technology), such as www.target.com beginning summer 2002, and, to the extent full product categories are not also offered by our online retail stores, the Merchant@amazon.com Program, such as our strategic alliance with Toysrus.com, as well as the strategic technology alliance with America Online, Inc. This segment also includes Amazon Auctions, zShops and Payments, and miscellaneous marketing and promotional agreements. -- All references to customers mean customer accounts, which are unique e-mail addresses, established either when a customer's initial order is shipped or when a customer orders from certain third-party sellers on Amazon.com. Customer accounts include customers of Amazon Marketplace, Auctions and zShops services and from our Merchant@amazon.com and Syndicated Stores Programs, but exclude Amazon.com Payments customers, our catalog customers and the customers of selected companies with whom we have strategic marketing and promotional relationships. -- Trailing twelve-month net sales per active customer account figures include all amounts earned through Internet sales, including net sales earned from new or used products sold through Amazon Marketplace, Auctions and zShops services, and products sold through our Merchant@amazon.com and Syndicated Stores Programs, but excluding products sold through our catalogs and certain strategic alliances and sales of inventory to Toysrus.com. A customer is considered active upon placing an order. These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, among others, the rate of growth of the economy in general and of the Internet and online commerce, customer spending patterns, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from products as compared with services, risks of inventory management, the degree to which the Company enters into, maintains and develops service relationships with third-party sellers and other strategic transactions, foreign currency exchange risks, seasonality, international growth and expansion, risks of fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. and productivity, and fluctuations in the value of securities and non-cash payments Amazon.com receives in connection with such transactions. Other risks and uncertainties include, among others, risk of future losses, significant amount of indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. , competition, potential fluctuations in operating results, management of potential growth, system interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. , consumer trends, fulfillment center optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. , inventory, limited operating history, government regulation and taxation, customer or third-party sellers fraud and Amazon.com Payments, new business areas, business combinations, and strategic alliances. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Dec. 31, 2001, and all subsequent filings. The Company intends to continue its practice of not updating forward-looking statements other than in publicly available documents. Pro Forma Results Pro forma results, which generally exclude non-operational, non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. and benefits as well as one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges, are provided as a complement to results provided in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. (known as "GAAP"). Management uses such pro forma measures internally to evaluate the Company's performance and manage its operations. A reconciliation of GAAP to pro forma is included in the attached financial statements. Pro forma operating results exclude the following line items on the Company's statements of operations: -- Our segment reporting includes four segments: U.S. Books, Music and DVD/Video; U.S. Electronics, Tools and Kitchen; International; and Services. Allocation methodologies have been consistently applied. -- The U.S. Books, Music and DVD/Video segment includes revenues, direct costs and cost allocations associated with retail sales from www.amazon.com for books, music, DVDs, video products and magazine subscriptions, and from stores offering these products through our Syndicated Stores Program (whereby a third-party seller's e-commerce Web site uses our e-commerce services and tools, and offers our product selection), such as www.borders.com. This segment also includes commissions and other amounts earned from sales of these products, new or used, through Amazon Marketplace, and will include amounts earned from offerings of these products by third-party sellers, if any, under our Merchant@amazon.com Program (whereby a third-party seller offers its products or services for sale on our Web site, either in our retail stores or in a cobranded store on our Web site, or both). -- The U.S. Electronics, Tools and Kitchen segment includes revenues, direct costs and cost allocations associated with www.amazon.com retail sales of electronics, computers, kitchen products and housewares, camera and photo items, software, cell phones and service, tools and hardware, outdoor living items, and computer and video game products, sold other than through our Toysrus.com strategic alliance, as well as catalog sales of toys and tools and hardware, and will include stores offering these products, if any, through our Syndicated Stores Program. This segment also includes commissions earned from sales of these products, new or used, through Amazon Marketplace and from offerings of these products by third-party sellers under our Merchant@amazon.com Program, such as Circuit City. -- The International segment includes all revenues, direct costs and cost allocations associated with the retail sales of our four internationally focused Web sites--www.amazon.de, www.amazon.fr, www.amazon.co.jp and www.amazon.co.uk--and from stores offering products through our Syndicated Stores Program. This segment also includes commissions and other amounts earned from sales of products, new or used, through Amazon Marketplace, and amounts earned from offerings of products by third-party sellers, if any, under our Merchant@amazon.com Program. -- The Services segment includes revenues, direct costs and cost allocations associated with our business-to-business strategic alliances, including the Merchant Program (whereby a third-party seller's e-commerce Web site operates at its own URL using our features and technology), such as www.target.com beginning summer 2002, and, to the extent full product categories are not also offered by our online retail stores, the Merchant@amazon.com Program, such as our strategic alliance with Toysrus.com, as well as the strategic technology alliance with America Online, Inc. This segment also includes Amazon Auctions, zShops and Payments, and miscellaneous marketing and promotional agreements. -- All references to customers mean customer accounts, which are unique e-mail addresses, established either when a customer's initial order is shipped or when a customer orders from certain third-party sellers on Amazon.com. Customer accounts include customers of Amazon Marketplace, Auctions and zShops services and from our Merchant@amazon.com and Syndicated Stores Programs, but exclude Amazon.com Payments customers, our catalog customers and the customers of selected companies with whom we have strategic marketing and promotional relationships. -- Trailing twelve-month net sales per active customer account figures include all amounts earned through Internet sales, including net sales earned from new or used products sold through Amazon Marketplace, Auctions and zShops services, and products sold through our Merchant@amazon.com and Syndicated Stores Programs, but excluding products sold through our catalogs and certain strategic alliances and sales of inventory to Toysrus.com. A customer is considered active upon placing an order. Pro forma net results exclude, in addition to the line items described above, the following line items on the Company's statements of operations: -- Our segment reporting includes four segments: U.S. Books, Music and DVD/Video; U.S. Electronics, Tools and Kitchen; International; and Services. Allocation methodologies have been consistently applied. -- The U.S. Books, Music and DVD/Video segment includes revenues, direct costs and cost allocations associated with retail sales from www.amazon.com for books, music, DVDs, video products and magazine subscriptions, and from stores offering these products through our Syndicated Stores Program (whereby a third-party seller's e-commerce Web site uses our e-commerce services and tools, and offers our product selection), such as www.borders.com. This segment also includes commissions and other amounts earned from sales of these products, new or used, through Amazon Marketplace, and will include amounts earned from offerings of these products by third-party sellers, if any, under our Merchant@amazon.com Program (whereby a third-party seller offers its products or services for sale on our Web site, either in our retail stores or in a cobranded store on our Web site, or both). -- The U.S. Electronics, Tools and Kitchen segment includes revenues, direct costs and cost allocations associated with www.amazon.com retail sales of electronics, computers, kitchen products and housewares, camera and photo items, software, cell phones and service, tools and hardware, outdoor living items, and computer and video game products, sold other than through our Toysrus.com strategic alliance, as well as catalog sales of toys and tools and hardware, and will include stores offering these products, if any, through our Syndicated Stores Program. This segment also includes commissions earned from sales of these products, new or used, through Amazon Marketplace and from offerings of these products by third-party sellers under our Merchant@amazon.com Program, such as Circuit City. -- The International segment includes all revenues, direct costs and cost allocations associated with the retail sales of our four internationally focused Web sites--www.amazon.de, www.amazon.fr, www.amazon.co.jp and www.amazon.co.uk--and from stores offering products through our Syndicated Stores Program. This segment also includes commissions and other amounts earned from sales of products, new or used, through Amazon Marketplace, and amounts earned from offerings of products by third-party sellers, if any, under our Merchant@amazon.com Program. -- The Services segment includes revenues, direct costs and cost allocations associated with our business-to-business strategic alliances, including the Merchant Program (whereby a third-party seller's e-commerce Web site operates at its own URL using our features and technology), such as www.target.com beginning summer 2002, and, to the extent full product categories are not also offered by our online retail stores, the Merchant@amazon.com Program, such as our strategic alliance with Toysrus.com, as well as the strategic technology alliance with America Online, Inc. This segment also includes Amazon Auctions, zShops and Payments, and miscellaneous marketing and promotional agreements. -- All references to customers mean customer accounts, which are unique e-mail addresses, established either when a customer's initial order is shipped or when a customer orders from certain third-party sellers on Amazon.com. Customer accounts include customers of Amazon Marketplace, Auctions and zShops services and from our Merchant@amazon.com and Syndicated Stores Programs, but exclude Amazon.com Payments customers, our catalog customers and the customers of selected companies with whom we have strategic marketing and promotional relationships. -- Trailing twelve-month net sales per active customer account figures include all amounts earned through Internet sales, including net sales earned from new or used products sold through Amazon Marketplace, Auctions and zShops services, and products sold through our Merchant@amazon.com and Syndicated Stores Programs, but excluding products sold through our catalogs and certain strategic alliances and sales of inventory to Toysrus.com. A customer is considered active upon placing an order. Conference Call A conference call will be Webcast live at www.amazon.com/ir today at 2 p.m. PDT/5 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT and will be available through June June: see month. 30, 2002. This call will contain forward-looking statements and other material information. About Amazon.com Amazon.com opened its virtual doors on the World Wide Web in July 1995 and today offers Earth's Biggest Selection. Amazon.com seeks to be the world's most customer-centric company, where customers can find and discover anything they might want to buy online. Amazon.com and sellers list millions of unique new and used items in categories such as electronics, computers, kitchen and housewares house·wares pl.n. Cooking utensils, dishes, and other small articles used in a household, especially in the kitchen. , books, music, DVDs, videos, camera and photo items, toys, baby and baby registry The configuration database in all 32-bit versions of Windows that contains settings for the hardware and software in the PC it is installed in. The Registry is made up of the SYSTEM.DAT and USER.DAT files. Many settings previously stored in the WIN.INI and SYSTEM. , software, computer and video games This article is about the British magazine covering computer and video games. For the American magazine, see Computer Games Magazine. Computer And Video Games (CVG , cell phones and service, tools and hardware, travel services, magazine subscriptions and outdoor living items. Through Amazon Marketplace Amazon Marketplace ( i.e:Third-party Marketplace ) is Amazon.com's fixed-price online marketplace that allows sellers to survey their goods alongside Amazon's offerings. Buyers can buy new and used items sold directly by a third party through Amazon. , zShops and Auctions, any business or individual can sell virtually anything to Amazon.com's millions of customers, and with Amazon.com Payments, sellers can accept credit card transactions, avoiding the hassles of offline (1) Not connected to the Internet, online service or internal network. See offline file. (2) Not connected to or not installed in the computer. If a terminal, printer or other device is physically connected to the computer, but is not turned on or in ready mode, it is payments. Amazon.com operates four international Web sites: www.amazon.co.uk, www.amazon.de, www.amazon.fr and www.amazon.co.jp. It also operates the Internet Movie Database (www.imdb.com), the Web's comprehensive and authoritative source of information on more than 300,000 movies and entertainment titles and 1 million cast and crew members dating from the birth of film.
AMAZON.COM, INC.
Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
-----------------------
2002 2001
---------- ----------
Net sales $ 847,422 $ 700,356
Cost of sales 624,297 517,759
---------- ----------
Gross profit 223,125 182,597
Operating expenses:
Fulfillment 89,815 98,248
Marketing 32,244 36,638
Technology and content 55,497 70,284
General and administrative 20,911 26,028
Stock-based compensation 10,931 2,916
Amortization of goodwill and other
intangibles 1,979 50,831
Restructuring-related and other 9,974 114,260
---------- ----------
Total operating expenses 221,351 399,205
---------- ----------
Income (loss) from operations 1,774 (216,608)
Interest income 5,652 9,950
Interest expense (35,244) (33,748)
Other income (expense), net 95 (3,884)
Other gains (losses), net 5,516 33,857
---------- ----------
Net interest expense and other (23,981) 6,175
---------- ----------
Loss before equity in losses of
equity-method investees (22,207) (210,433)
Equity in losses of equity-method
investees, net (1,744) (13,175)
---------- ----------
Loss before change in accounting principle (23,951) (223,608)
Cumulative effect of change in
accounting principle 801 (10,523)
Net loss $ (23,150) $(234,131)
========== ==========
Basic and diluted loss per share:
Prior to cumulative effect of change in
accounting principle $ (0.06) $ (0.63)
Cumulative effect of change in
accounting principle - (0.03)
---------- ----------
$ (0.06) $ (0.66)
========== ==========
Shares used in computation of basic
and diluted loss per share: 373,031 357,424
========== ==========
Note: The attached Financial and Operational Highlights are an
integral part of the press release financial statements.
AMAZON.COM, INC.
Pro Forma Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31, 2002
----------------------------------
As Pro Forma
Reported(1) Adjustments Pro Forma
---------- ---------- ----------
Net sales $ 847,422 $ - $ 847,422
Cost of sales 624,297 - 624,297
---------- ---------- ----------
Gross profit 223,125 - 223,125
Operating expenses:
Fulfillment 89,815 - 89,815
Marketing 32,244 - 32,244
Technology and content 55,497 - 55,497
General and administrative 20,911 - 20,911
Stock-based compensation 10,931 (10,931) -
Amortization of goodwill and
other intangibles 1,979 (1,979) -
Restructuring-related and other 9,974 (9,974) -
---------- ---------- ----------
Total operating expenses 221,351 (22,884) 198,467
---------- ---------- ----------
Income (loss) from operations 1,774 22,884 24,658
Interest income 5,652 - 5,652
Interest expense (35,244) - (35,244)
Other income (expense), net 95 - 95
Other gains (losses), net 5,516 (5,516) -
---------- ---------- ----------
Net interest expense and other (23,981) (5,516) (29,497)
---------- ---------- ----------
Loss before equity in losses of
equity-method investees (22,207) 17,368 (4,839)
Equity in losses of equity-method
investees, net (1,744) 1,744 -
---------- ---------- ----------
Loss before change in
accounting principle (23,951) 19,112 (4,839)
Cumulative effect of change in
accounting principle 801 (801) -
---------- ---------- ----------
Net loss $ (23,150) $ 18,311 $ (4,839)
========== ========= =========
Net cash used in operating
activities $(241,033) $(241,033)
========== ==========
Basic and diluted loss per share:
Prior to cumulative effect of
change in accounting principle $ (0.06) $ 0.05 $ (0.01)
Cumulative effect of change in
accounting principle - - -
---------- ---------- ----------
$ (0.06) $ 0.05 $ (0.01)
========== ========= =========
Shares used in computation of basic
and diluted loss per share: 373,031 373,031
========== ==========
Three Months Ended
March 31, 2001
----------------------------------
As Pro Forma
Reported(1) Adjustments Pro Forma
---------- ---------- ----------
Net sales $ 700,356 $ - $ 700,356
Cost of sales 517,759 - 517,759
---------- ---------- ----------
Gross profit 182,597 - 182,597
Operating expenses:
Fulfillment 98,248 - 98,248
Marketing 36,638 - 36,638
Technology and content 70,284 - 70,284
General and administrative 26,028 - 26,028
Stock-based compensation 2,916 (2,916) -
Amortization of goodwill and
other intangibles 50,831 (50,831) -
Restructuring-related and other 114,260 (114,260) -
---------- ---------- ----------
Total operating expenses 399,205 (168,007) 231,198
---------- ---------- ----------
Income (loss) from operations (216,608) 168,007 (48,601)
Interest income 9,950 - 9,950
Interest expense (33,748) - (33,748)
Other income (expense), net (3,884) - (3,884)
Other gains (losses), net 33,857 (33,857) -
---------- ---------- ----------
Net interest expense and other 6,175 (33,857) (27,682)
---------- ---------- ----------
Loss before equity in losses of
equity-method investees (210,433) 134,150 (76,283)
Equity in losses of equity-method
investees, net (13,175) 13,175 -
---------- ---------- ----------
Loss before change in
accounting principle (223,608) 147,325 (76,283)
Cumulative effect of change in
accounting principle (10,523) 10,523 -
---------- ---------- ----------
Net loss $(234,131) $ 157,848 $ (76,283)
========== ========= =========
Net cash used in operating
activities $(406,984) $(406,984)
========== ==========
Basic and diluted loss per share:
Prior to cumulative effect of
change in accounting principle $ (0.63) $ 0.42 $ (0.21)
Cumulative effect of change in
accounting principle (0.03) 0.03 -
---------- ---------- ----------
$ (0.66) $ 0.45 $ (0.21)
Shares used in computation of basic
and diluted loss per share: 357,424 357,424
========== =========
Note: The attached Financial and Operational Highlights are an
integral part of the press release financial statements.
(1) In accordance with accounting principles generally accepted in the
United States.
AMAZON.COM, INC.
Segment Information
(in thousands)
(unaudited)
Three Months Ended March 31, 2002
----------------------------------
U.S. Retail
----------------------------------
Electronics,
Books, Music Tools and
and DVD/Video Kitchen Total
-----------------------------------
Net sales $443,038 $126,203 $569,241
Gross profit 123,135 19,423 142,558
Pro forma income (loss) from
operations 46,363 (20,756) 25,607
Stock-based compensation
Amortization of goodwill and other
intangibles
Restructuring-related and other
Net interest expense and other
Equity in losses of equity-method
investees, net
Cumulative effect of change in
accounting principle
Net loss
Segment highlights:
Y / Y net sales growth 8% 8% 8%
Y / Y gross profit growth 13% 13% 13%
Gross margin 28% 15% 25%
Pro forma operating margin 10% (16%) 4%
Net sales mix 52% 15% 67%
Three Months Ended March 31, 2002
----------------------------------
International Services Consolidated
-----------------------------------
Net sales $225,520 $ 52,661 $847,422
Gross profit 49,004 31,563 223,125
Pro forma income (loss) from
operations (11,264) 10,315 24,658
Stock-based compensation (10,931)
Amortization of goodwill and other
intangibles (1,979)
Restructuring-related and other (9,974)
Net interest expense and other (23,981)
Equity in losses of equity-method
investees, net (1,744)
Cumulative effect of change in
accounting principle 801
---
Net loss $(23,150)
=========
Segment highlights:
Y / Y net sales growth 71% 25% 21%
Y / Y gross profit growth 75% 12% 22%
Gross margin 22% 60% 26%
Pro forma operating margin (5%) 20% 3%
Net sales mix 27% 6% 100%
Three Months Ended March 31, 2001
----------------------------------
U.S. Retail
----------------------------------
Electronics,
Books, Music Tools and
and DVD/Video Kitchen Total
-----------------------------------
Net sales $409,586 $116,507 $526,093
Gross profit 109,119 17,220 126,339
Pro forma income (loss)
from operations 27,625 (45,833) (18,208)
Stock-based compensation
Amortization of goodwill and other
intangibles
Restructuring-related and other
Net interest expense and other
Equity in losses of equity-method
investees, net
Cumulative effect of change in
accounting principle
Net loss
Segment highlights:
Y / Y net sales growth 2% 56% 11%
Y / Y gross profit growth 32% 144% 41%
Gross margin 27% 15% 24%
Pro forma operating margin 7% (39%) (3%)
Net sales mix 58% 17% 75%
Three Months Ended March 31, 2001
----------------------------------
International Services Consolidated
-----------------------------------
Net sales $132,105 $ 42,158 $700,356
Gross profit 28,050 28,208 182,597
Pro forma income (loss)
from operations (34,569) 4,176 (48,601)
Stock-based compensation (2,916)
Amortization of goodwill and other
intangibles (50,831)
Restructuring-related and other (114,260)
Net interest expense and other 6,175
Equity in losses of equity-method
investees, net (13,175)
Cumulative effect of change in
accounting principle (10,523)
--------
Net loss $(234,131)
==========
Segment highlights:
Y / Y net sales growth 76% 85% 22%
Y / Y gross profit growth 75% 27% 43%
Gross margin 21% 67% 26%
Pro forma operating margin (26%) 10% (7%)
Net sales mix 19% 6% 100%
Note: The attached Financial and Operational Highlights are an
integral part of the press release financial statements.
AMAZON.COM, INC.
Balance Sheets
(in thousands, except per share data)
(unaudited)
March 31, Dec. 31,
2002 2001
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 296,689 $ 540,282
Marketable securities 448,569 456,303
Inventories 138,996 143,722
Prepaid expenses and other current assets 70,019 67,613
------------ ------------
Total current assets 954,273 1,207,920
Fixed assets, net 256,403 271,751
Goodwill, net 70,811 45,367
Other intangibles, net 6,959 34,382
Investments in equity-method investees 8,643 10,387
Other equity investments 16,770 17,972
Other assets 48,069 49,768
------------ ------------
Total assets $ 1,361,928 $ 1,637,547
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 314,616 $ 444,748
Accrued expenses and other
current liabilities 232,898 305,064
Unearned revenue 79,361 87,978
Interest payable 16,197 68,632
Current portion of long-term debt
and other 13,958 14,992
------------ ------------
Total current liabilities 657,030 921,414
Long-term debt and other 2,152,273 2,156,133
Commitments and contingencies
Stockholders' deficit:
Preferred stock, $0.01 par value:
Authorized shares -- 500,000
Issued and outstanding shares -- none - -
Common stock, $0.01 par value:
Authorized shares -- 5,000,000
Issued and outstanding shares --
375,109 and 373,218, respectively 3,751 3,732
Additional paid-in capital 1,480,935 1,462,769
Deferred stock-based compensation (9,710) (9,853)
Accumulated other comprehensive loss (38,623) (36,070)
Accumulated deficit (2,883,728) (2,860,578)
------------ ------------
Total stockholders' deficit (1,447,375) (1,440,000)
------------ ------------
Total liabilities and
stockholders' deficit $ 1,361,928 $ 1,637,547
============ ============
Note: The attached Financial and Operational Highlights are an
integral part of the press release financial statements.
AMAZON.COM, INC.
Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended
March 31,
------------------------
2002 2001
------------------------
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD $ 540,282 $ 822,435
OPERATING ACTIVITIES:
Net loss (23,150) (234,131)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation of fixed assets and
other amortization 20,940 23,073
Stock-based compensation 10,931 2,916
Equity in losses of equity-method
investees, net 1,744 13,175
Amortization of goodwill and
other intangibles 1,979 50,831
Non-cash restructuring-related and other - 62,004
Loss (gain) on sale of marketable
securities, net (376) 27
Other gains, net (5,516) (33,857)
Non-cash interest expense and other 7,061 6,572
Cumulative effect of change in accounting
principle (801) 10,523
Changes in operating assets and liabilities:
Inventories 4,674 19,823
Prepaid expenses and other current assets (3,320) 27,334
Accounts payable (128,286) (229,758)
Accrued expenses and other current
liabilities (65,861) (57,762)
Unearned revenue 28,716 18,005
Amortization of previously unearned revenue (37,333) (33,392)
Interest payable (52,435) (52,367)
---------- -----------
Net cash used in operating activities (241,033) (406,984)
INVESTING ACTIVITIES:
Sales and maturities of marketable securities 136,575 94,366
Purchases of marketable securities (134,227) (30,378)
Purchases of fixed assets, including
internal-use software and
web-site development (4,854) (19,437)
---------- -----------
Net cash provided by (used in)
investing activities (2,506) 44,551
FINANCING ACTIVITIES:
Proceeds from exercise of stock options
and other 7,409 5,833
Proceeds from long-term debt and other - 10,000
Repayment of capital lease obligations
and other (4,563) (4,575)
---------- -----------
Net cash provided by financing activities 2,846 11,258
Effect of exchange-rate changes on cash and
cash equivalents (2,900) (24,316)
---------- -----------
Net decrease in cash and cash equivalents (243,593) (375,491)
---------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 296,689 $ 446,944
========== ===========
SUPPLEMENTAL CASH FLOW INFORMATION:
Fixed assets acquired under capital leases $ 924 $ 2,298
Equity securities received for commercial
agreements - 331
Cash paid for interest 80,483 79,517
Note: The attached Financial and Operational Highlights are an
integral part of the press release financial statements.
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(unaudited)
(in millions, except per share data)
Y/Y %
Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Growth
--------------------------------------------------
Results of Operations
Net sales $ 700 $ 668 $ 639 $ 1,115 $ 847 21%
Net sales --
trailing twelve
months (TTM) $ 2,888 $ 2,978 $ 2,980 $ 3,122 $ 3,269 13%
Net sales to
customers outside
the U.S. -- % of
net sales 26% 28% 29% 29% 34% N/A
Gross profit $ 183 $ 180 $ 162 $ 274 $ 223 22%
Gross margin -- % of
net sales 26.1% 26.9% 25.4% 24.6% 26.3% N/A
Gross profit -- TTM $ 710 $ 754 $ 749 $ 799 $ 839 18%
Gross margin -- TTM
% of net sales 24.6% 25.3% 25.1% 25.6% 25.7% N/A
Fulfillment costs --
% of net sales 14.0% 12.8% 12.7% 9.8% 10.6% N/A
Fulfillment costs --
TTM % of net sales 14.3% 13.8% 13.3% 12.0% 11.2% N/A
Fulfillment costs --
% of U.S. Retail
and International
combined net sales 14.9% 13.6% 13.7% 10.7% 11.3% N/A
Pro forma operating
expenses $ 231 $ 208 $ 189 $ 215 $ 198 (14%)
Pro forma operating
expenses -- TTM $ 977 $ 959 $ 912 $ 844 $ 811 (17%)
Pro forma operating
income (loss) $ (49) $ (28) $ (27) $ 59 $ 25 N/A
Pro forma operating
margin -- % of net
sales (6.9%) (4.2%) (4.2%) 5.3% 2.9% N/A
Pro forma operating
income (loss)
-- TTM $ (266) $ (205) $ (164) $ (45) $ 28 N/A
Pro forma operating
income (loss) --
TTM % of net sales (9.2%) (6.9%) (5.5%) (1.4%) 0.9% N/A
GAAP operating
income (loss) $ (217) $ (140) $ (70) $ 15 $ 2 N/A
GAAP operating
income (loss) --
% of net sales (30.9%) (20.9%) (11.0%) 1.3% 0.2% N/A
GAAP operating
income (loss)
-- TTM $ (883) $ (842) $ (749) $ (412) $ (194) (78%)
GAAP operating
income (loss) --
TTM % of net sales (30.6%) (28.3%) (25.1%) (13.2%) (5.9%) N/A
Pro forma net income
(loss) $ (76) $ (58) $ (58) $ 35 $ (5) (94%)
Pro forma net income
(loss) per share $ (0.21) $ (0.16) $ (0.16) $ 0.09 $ (0.01) N/A
Pro forma net income
(loss) -- TTM $ (372) $ (314) $ (282) $ (157) $ (86) (77%)
GAAP net income
(loss) $ (234) $ (168) $ (170) $ 5 $ (23) (90%)
GAAP net income
(loss) per share $ (0.66) $ (0.47) $ (0.46) $ 0.01 $ (0.06) N/A
GAAP net income
(loss) -- TTM $(1,337) $(1,188) $(1,118) $ (567) $ (356) (73%)
U.S. Books, Music
and DVD/Video
(US BMVD) segment:
US BMVD net sales $ 410 $ 390 $ 351 $ 538 $ 443 8%
US BMVD net sales
-- TTM $ 1,706 $ 1,711 $ 1,662 $ 1,689 $ 1,722 1%
US BMVD gross
profit $ 109 $ 111 $ 93 $ 140 $ 123 13%
US BMVD pro forma
operating margin
-- % of US BMVD
net sales 7% 10% 7% 12% 10% N/A
U.S. Electronics,
Tools and Kitchen
(US ETK) segment:
US ETK net sales $ 117 $ 111 $ 103 $ 217 $ 126 8%
US ETK net sales
-- TTM $ 526 $ 545 $ 551 $ 547 $ 557 6%
US ETK gross
profit $ 17 $ 13 $ 13 $ 35 $ 19 13%
US ETK pro forma
operating margin
-- % of US ETK
net sales (39%) (37%) (32%) (9%) (16%) N/A
International
segment:
International net
sales $ 132 $ 128 $ 138 $ 262 $ 226 71%
International net
sales -- TTM $ 438 $ 493 $ 544 $ 661 $ 755 72%
International
gross profit $ 28 $ 29 $ 28 $ 55 $ 49 75%
International pro
forma operating
margin -- % of
International
net sales (26%) (23%) (20%) (4%) (5%) N/A
Services segment:
Services net
sales $ 42 $ 39 $ 46 $ 98 $ 53 25%
Services net sales
-- TTM $ 218 $ 229 $ 223 $ 225 $ 236 8%
Services gross
profit $ 28 $ 26 $ 27 $ 45 $ 32 12%
Services pro forma
operating margin
-- % of Services
net sales 10% 11% 17% 26% 20% N/A
Note: The attached Financial and Operational Highlights are an
integral part of this Supplemental Financial Information and
Business Metrics.
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(unaudited)
(in millions, except net sales per active customer, marketing cost
per active customer account, inventory turnover, accounts payable
days, and employee data)
Y/Y %
Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Growth
--------------------------------------------------
Customer Data (a)
Active customer
accounts -- TTM 20.5 21.1 23.0 24.7 26.2 27%
Active customer
accounts --
International
-- TTM 4.9 5.4 6.1 6.9 7.6 55%
Net sales
(excluding catalog
sales) per active
customer account
-- TTM $ 135 $ 136 $ 126 $ 123 $ 122 (10%)
Marketing cost per
active customer
account -- TTM $ 8.6 $ 8.0 $ 6.9 $ 5.6 $ 5.1 (41%)
Balance Sheet
Cash and marketable
securities $ 643 $ 609 $ 668 $ 997 $ 745 16%
Inventory, net $ 156 $ 129 $ 131 $ 144 $ 139 (11%)
Inventory -- % of
net sales 24% 21% 20% 12% 17% N/A
Inventory -- % of
TTM net sales 6% 5% 5% 5% 4% N/A
Inventory turnover
-- annualized 12.6 13.7 14.7 24.5 17.7 40%
Inventory turnover
-- TTM 13.0 14.0 14.8 15.8 17.4 34%
Fixed assets, net $ 304 $ 292 $ 288 $ 272 $ 256 (16%)
Accounts payable
days -- ending 45 48 46 49 45 0%
Cash Flows
Cash generated by
(used in)
operations -- TTM $ (217) $ (161) $ (221) $ (120) $ 46 N/A
Free cash flow
(operating cash
flow less
purchases of fixed
assets) -- TTM $ (345) $ (270) $ (301) $ (170) $ 10 N/A
Adjusted free cash
flow (free cash
flow less
repayment of
capital lease
obligations)
-- TTM $ (362) $ (286) $ (320) $ (190) $ (9) (98%)
Other
Common shares
outstanding 359 362 372 373 375 4%
Options outstanding
-- % of common
shares outstanding 12% 12% 18% 18% 17% N/A
Employees (full-time
and part-time) 8,600 7,800 7,900 7,800 7,900 (8%)
Note: The attached Financial and Operational Highlights are an
integral part of this Supplemental Financial Information and
Business Metrics.
(a) Our customer account and active customer calculation methodology
was modified in the third quarter 2001, primarily to include all
customers who order new and used products through Amazon
Marketplace. Our prior methodology did not capture all such
customers. If second quarter 2001 customer metrics were presented
under the modified methodology, active customer accounts,
International active customer accounts, TTM net sales per active
customer account, and marketing cost per active customer account
would have been 21.9 million, 5.5 million, $131, and $7.7,
respectively. Amounts prior to the 2001 second quarter have not
been recalculated under the current methodology.
AMAZON.COM INC. Financial and Operational Highlights First Quarter Ended March 31, 2002 (unaudited) Results of Operations (all comparisons are with the equivalent period of 2001) Net Sales -- Our segment reporting includes four segments: U.S. Books, Music and DVD/Video; U.S. Electronics, Tools and Kitchen; International; and Services. Allocation methodologies have been consistently applied. -- The U.S. Books, Music and DVD/Video segment includes revenues, direct costs and cost allocations associated with retail sales from www.amazon.com for books, music, DVDs, video products and magazine subscriptions, and from stores offering these products through our Syndicated Stores Program (whereby a third-party seller's e-commerce Web site uses our e-commerce services and tools, and offers our product selection), such as www.borders.com. This segment also includes commissions and other amounts earned from sales of these products, new or used, through Amazon Marketplace, and will include amounts earned from offerings of these products by third-party sellers, if any, under our Merchant@amazon.com Program (whereby a third-party seller offers its products or services for sale on our Web site, either in our retail stores or in a cobranded store on our Web site, or both). -- The U.S. Electronics, Tools and Kitchen segment includes revenues, direct costs and cost allocations associated with www.amazon.com retail sales of electronics, computers, kitchen products and housewares, camera and photo items, software, cell phones and service, tools and hardware, outdoor living items, and computer and video game products, sold other than through our Toysrus.com strategic alliance, as well as catalog sales of toys and tools and hardware, and will include stores offering these products, if any, through our Syndicated Stores Program. This segment also includes commissions earned from sales of these products, new or used, through Amazon Marketplace and from offerings of these products by third-party sellers under our Merchant@amazon.com Program, such as Circuit City. -- The International segment includes all revenues, direct costs and cost allocations associated with the retail sales of our four internationally focused Web sites--www.amazon.de, www.amazon.fr, www.amazon.co.jp and www.amazon.co.uk--and from stores offering products through our Syndicated Stores Program. This segment also includes commissions and other amounts earned from sales of products, new or used, through Amazon Marketplace, and amounts earned from offerings of products by third-party sellers, if any, under our Merchant@amazon.com Program. -- The Services segment includes revenues, direct costs and cost allocations associated with our business-to-business strategic alliances, including the Merchant Program (whereby a third-party seller's e-commerce Web site operates at its own URL using our features and technology), such as www.target.com beginning summer 2002, and, to the extent full product categories are not also offered by our online retail stores, the Merchant@amazon.com Program, such as our strategic alliance with Toysrus.com, as well as the strategic technology alliance with America Online, Inc. This segment also includes Amazon Auctions, zShops and Payments, and miscellaneous marketing and promotional agreements. -- All references to customers mean customer accounts, which are unique e-mail addresses, established either when a customer's initial order is shipped or when a customer orders from certain third-party sellers on Amazon.com. Customer accounts include customers of Amazon Marketplace, Auctions and zShops services and from our Merchant@amazon.com and Syndicated Stores Programs, but exclude Amazon.com Payments customers, our catalog customers and the customers of selected companies with whom we have strategic marketing and promotional relationships. -- Trailing twelve-month net sales per active customer account figures include all amounts earned through Internet sales, including net sales earned from new or used products sold through Amazon Marketplace, Auctions and zShops services, and products sold through our Merchant@amazon.com and Syndicated Stores Programs, but excluding products sold through our catalogs and certain strategic alliances and sales of inventory to Toysrus.com. A customer is considered active upon placing an order. Gross Profit -- Our segment reporting includes four segments: U.S. Books, Music and DVD/Video; U.S. Electronics, Tools and Kitchen; International; and Services. Allocation methodologies have been consistently applied. -- The U.S. Books, Music and DVD/Video segment includes revenues, direct costs and cost allocations associated with retail sales from www.amazon.com for books, music, DVDs, video products and magazine subscriptions, and from stores offering these products through our Syndicated Stores Program (whereby a third-party seller's e-commerce Web site uses our e-commerce services and tools, and offers our product selection), such as www.borders.com. This segment also includes commissions and other amounts earned from sales of these products, new or used, through Amazon Marketplace, and will include amounts earned from offerings of these products by third-party sellers, if any, under our Merchant@amazon.com Program (whereby a third-party seller offers its products or services for sale on our Web site, either in our retail stores or in a cobranded store on our Web site, or both). -- The U.S. Electronics, Tools and Kitchen segment includes revenues, direct costs and cost allocations associated with www.amazon.com retail sales of electronics, computers, kitchen products and housewares, camera and photo items, software, cell phones and service, tools and hardware, outdoor living items, and computer and video game products, sold other than through our Toysrus.com strategic alliance, as well as catalog sales of toys and tools and hardware, and will include stores offering these products, if any, through our Syndicated Stores Program. This segment also includes commissions earned from sales of these products, new or used, through Amazon Marketplace and from offerings of these products by third-party sellers under our Merchant@amazon.com Program, such as Circuit City. -- The International segment includes all revenues, direct costs and cost allocations associated with the retail sales of our four internationally focused Web sites--www.amazon.de, www.amazon.fr, www.amazon.co.jp and www.amazon.co.uk--and from stores offering products through our Syndicated Stores Program. This segment also includes commissions and other amounts earned from sales of products, new or used, through Amazon Marketplace, and amounts earned from offerings of products by third-party sellers, if any, under our Merchant@amazon.com Program. -- The Services segment includes revenues, direct costs and cost allocations associated with our business-to-business strategic alliances, including the Merchant Program (whereby a third-party seller's e-commerce Web site operates at its own URL using our features and technology), such as www.target.com beginning summer 2002, and, to the extent full product categories are not also offered by our online retail stores, the Merchant@amazon.com Program, such as our strategic alliance with Toysrus.com, as well as the strategic technology alliance with America Online, Inc. This segment also includes Amazon Auctions, zShops and Payments, and miscellaneous marketing and promotional agreements. -- All references to customers mean customer accounts, which are unique e-mail addresses, established either when a customer's initial order is shipped or when a customer orders from certain third-party sellers on Amazon.com. Customer accounts include customers of Amazon Marketplace, Auctions and zShops services and from our Merchant@amazon.com and Syndicated Stores Programs, but exclude Amazon.com Payments customers, our catalog customers and the customers of selected companies with whom we have strategic marketing and promotional relationships. -- Trailing twelve-month net sales per active customer account figures include all amounts earned through Internet sales, including net sales earned from new or used products sold through Amazon Marketplace, Auctions and zShops services, and products sold through our Merchant@amazon.com and Syndicated Stores Programs, but excluding products sold through our catalogs and certain strategic alliances and sales of inventory to Toysrus.com. A customer is considered active upon placing an order. Fulfillment -- Fulfillment costs represent those costs incurred in operating and staffing our fulfillment and customer service centers, including costs attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to receiving, inspecting and warehousing inventories; picking, packaging and preparing customers' orders for shipment; credit card fees and bad debt costs; and responding to inquiries from customers. Fulfillment costs also include amounts paid to third-party co-sourcers, who assist us in fulfillment and customer service operations. Certain fulfillment-related costs incurred on behalf of third-party sellers, excluding those costs associated with Syndicated Stores, are classified as cost of sales rather than fulfillment. Stock-Based Compensation -- During the first quarter 2001, we offered a limited non-compulsory exchange of employee stock options. This option exchange offer results in variable accounting treatment for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 11 million stock options at March 31, 2002, which includes approximately 10 million options granted under the exchange offer with an exercise price of $13.375 and approximately 1 million options that were subject to the exchange offer but were not exchanged. Variable accounting treatment will result in unpredictable and potentially significant charges or credits, depending on fluctuations in quoted prices for our common stock, which we are unable to forecast. Amortization of Goodwill and Other Intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. -- As a result of our adoption of the full provisions of Statement of Financial Accounting Standards No. 141 and No. 142, during the first quarter we reclassified $25 million of other intangibles (comprising only assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. workforce intangibles) to goodwill and discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the amortization of our goodwill assets. In addition, we completed an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. analysis of goodwill and determined the amount to be fairly stated. Restructuring-Related and Other
-- Our segment reporting includes four segments: U.S. Books, Music and
DVD/Video; U.S. Electronics, Tools and Kitchen; International; and Services.
Allocation methodologies have been consistently applied.
-- The U.S. Books, Music and DVD/Video segment includes revenues, direct costs
and cost allocations associated with retail sales from www.amazon.com for
books, music, DVDs, video products and magazine subscriptions, and from stores
offering these products through our Syndicated Stores Program (whereby a
third-party seller's e-commerce Web site uses our e-commerce services and
tools, and offers our product selection), such as www.borders.com. This segment
also includes commissions and other amounts earned from sales of these
products, new or used, through Amazon Marketplace, and will include amounts
earned from offerings of these products by third-party sellers, if any, under
our Merchant@amazon.com Program (whereby a third-party seller offers its
products or services for sale on our Web site, either in our retail stores or
in a cobranded store on our Web site, or both).
-- The U.S. Electronics, Tools and Kitchen segment includes revenues, direct
costs and cost allocations associated with www.amazon.com retail sales of
electronics, computers, kitchen products and housewares, camera and photo
items, software, cell phones and service, tools and hardware, outdoor living
items, and computer and video game products, sold other than through our
Toysrus.com strategic alliance, as well as catalog sales of toys and tools and
hardware, and will include stores offering these products, if any, through our
Syndicated Stores Program. This segment also includes commissions earned from
sales of these products, new or used, through Amazon Marketplace and from
offerings of these products by third-party sellers under our
Merchant@amazon.com Program, such as Circuit City.
-- The International segment includes all revenues, direct costs and cost
allocations associated with the retail sales of our four internationally
focused Web sites--www.amazon.de, www.amazon.fr, www.amazon.co.jp and
www.amazon.co.uk--and from stores offering products through our Syndicated
Stores Program. This segment also includes commissions and other amounts earned
from sales of products, new or used, through Amazon Marketplace, and amounts
earned from offerings of products by third-party sellers, if any, under our
Merchant@amazon.com Program.
-- The Services segment includes revenues, direct costs and cost allocations
associated with our business-to-business strategic alliances, including the
Merchant Program (whereby a third-party seller's e-commerce Web site operates
at its own URL using our features and technology), such as www.target.com
beginning summer 2002, and, to the extent full product categories are not also
offered by our online retail stores, the Merchant@amazon.com Program, such as
our strategic alliance with Toysrus.com, as well as the strategic technology
alliance with America Online, Inc. This segment also includes Amazon Auctions,
zShops and Payments, and miscellaneous marketing and promotional agreements.
-- All references to customers mean customer accounts, which are unique e-mail
addresses, established either when a customer's initial order is shipped or
when a customer orders from certain third-party sellers on Amazon.com. Customer
accounts include customers of Amazon Marketplace, Auctions and zShops services
and from our Merchant@amazon.com and Syndicated Stores Programs, but exclude
Amazon.com Payments customers, our catalog customers and the customers of
selected companies with whom we have strategic marketing and promotional
relationships.
-- Trailing twelve-month net sales per active customer account figures include
all amounts earned through Internet sales, including net sales earned from new
or used products sold through Amazon Marketplace, Auctions and zShops services,
and products sold through our Merchant@amazon.com and Syndicated Stores
Programs, but excluding products sold through our catalogs and certain
strategic alliances and sales of inventory to Toysrus.com. A customer is
considered active upon placing an order.
(in thousands)
Leases(a) Other Total
--------- ----- -----
Nine Months Ending Dec. 31,
2002 $23,922 $5,060 $28,982
Year Ending Dec. 31,
2003 6,410 3,037 9,447
2004 2,761 -- 2,761
2005 2,770 -- 2,770
2006 3,036 -- 3,036
Thereafter 10,909 -- 10,909
------- ------ -------
Total estimated cash outflows $49,808 $8,097 $57,905
======= ====== =======
(a) Net of anticipated sublease income of approximately $60 million.
Other Income (Expense), Net -- Other income (expense) consists primarily of net realized gains and losses on sales of marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has , miscellaneous state and foreign taxes and certain foreign-currency-related transaction gains and losses. Other Gains (Losses), Net -- Our segment reporting includes four segments: U.S. Books, Music and DVD/Video; U.S. Electronics, Tools and Kitchen; International; and Services. Allocation methodologies have been consistently applied. -- The U.S. Books, Music and DVD/Video segment includes revenues, direct costs and cost allocations associated with retail sales from www.amazon.com for books, music, DVDs, video products and magazine subscriptions, and from stores offering these products through our Syndicated Stores Program (whereby a third-party seller's e-commerce Web site uses our e-commerce services and tools, and offers our product selection), such as www.borders.com. This segment also includes commissions and other amounts earned from sales of these products, new or used, through Amazon Marketplace, and will include amounts earned from offerings of these products by third-party sellers, if any, under our Merchant@amazon.com Program (whereby a third-party seller offers its products or services for sale on our Web site, either in our retail stores or in a cobranded store on our Web site, or both). -- The U.S. Electronics, Tools and Kitchen segment includes revenues, direct costs and cost allocations associated with www.amazon.com retail sales of electronics, computers, kitchen products and housewares, camera and photo items, software, cell phones and service, tools and hardware, outdoor living items, and computer and video game products, sold other than through our Toysrus.com strategic alliance, as well as catalog sales of toys and tools and hardware, and will include stores offering these products, if any, through our Syndicated Stores Program. This segment also includes commissions earned from sales of these products, new or used, through Amazon Marketplace and from offerings of these products by third-party sellers under our Merchant@amazon.com Program, such as Circuit City. -- The International segment includes all revenues, direct costs and cost allocations associated with the retail sales of our four internationally focused Web sites--www.amazon.de, www.amazon.fr, www.amazon.co.jp and www.amazon.co.uk--and from stores offering products through our Syndicated Stores Program. This segment also includes commissions and other amounts earned from sales of products, new or used, through Amazon Marketplace, and amounts earned from offerings of products by third-party sellers, if any, under our Merchant@amazon.com Program. -- The Services segment includes revenues, direct costs and cost allocations associated with our business-to-business strategic alliances, including the Merchant Program (whereby a third-party seller's e-commerce Web site operates at its own URL using our features and technology), such as www.target.com beginning summer 2002, and, to the extent full product categories are not also offered by our online retail stores, the Merchant@amazon.com Program, such as our strategic alliance with Toysrus.com, as well as the strategic technology alliance with America Online, Inc. This segment also includes Amazon Auctions, zShops and Payments, and miscellaneous marketing and promotional agreements. -- All references to customers mean customer accounts, which are unique e-mail addresses, established either when a customer's initial order is shipped or when a customer orders from certain third-party sellers on Amazon.com. Customer accounts include customers of Amazon Marketplace, Auctions and zShops services and from our Merchant@amazon.com and Syndicated Stores Programs, but exclude Amazon.com Payments customers, our catalog customers and the customers of selected companies with whom we have strategic marketing and promotional relationships. -- Trailing twelve-month net sales per active customer account figures include all amounts earned through Internet sales, including net sales earned from new or used products sold through Amazon Marketplace, Auctions and zShops services, and products sold through our Merchant@amazon.com and Syndicated Stores Programs, but excluding products sold through our catalogs and certain strategic alliances and sales of inventory to Toysrus.com. A customer is considered active upon placing an order. Earnings per Share -- Basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of is computed using the weighted average number of common and common stock equivalent shares outstanding during the period; common stock equivalent shares, such as options, warrants and convertible securities, were excluded from the computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. because their effect is antidilutive antidilutive Of or relating to the conversion of convertible securities into common stock when such conversion would result in an increase in diluted earnings per share or a decrease in diluted loss per share. . If the effect of common stock equivalents had been included, the number of shares used in the computation of diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share would have been approximately 394 million, compared with 374 million. Financial Condition Cash and Marketable Securities
-- Our segment reporting includes four segments: U.S. Books, Music and
DVD/Video; U.S. Electronics, Tools and Kitchen; International; and Services.
Allocation methodologies have been consistently applied.
-- The U.S. Books, Music and DVD/Video segment includes revenues, direct costs
and cost allocations associated with retail sales from www.amazon.com for
books, music, DVDs, video products and magazine subscriptions, and from stores
offering these products through our Syndicated Stores Program (whereby a
third-party seller's e-commerce Web site uses our e-commerce services and
tools, and offers our product selection), such as www.borders.com. This segment
also includes commissions and other amounts earned from sales of these
products, new or used, through Amazon Marketplace, and will include amounts
earned from offerings of these products by third-party sellers, if any, under
our Merchant@amazon.com Program (whereby a third-party seller offers its
products or services for sale on our Web site, either in our retail stores or
in a cobranded store on our Web site, or both).
-- The U.S. Electronics, Tools and Kitchen segment includes revenues, direct
costs and cost allocations associated with www.amazon.com retail sales of
electronics, computers, kitchen products and housewares, camera and photo
items, software, cell phones and service, tools and hardware, outdoor living
items, and computer and video game products, sold other than through our
Toysrus.com strategic alliance, as well as catalog sales of toys and tools and
hardware, and will include stores offering these products, if any, through our
Syndicated Stores Program. This segment also includes commissions earned from
sales of these products, new or used, through Amazon Marketplace and from
offerings of these products by third-party sellers under our
Merchant@amazon.com Program, such as Circuit City.
-- The International segment includes all revenues, direct costs and cost
allocations associated with the retail sales of our four internationally
focused Web sites--www.amazon.de, www.amazon.fr, www.amazon.co.jp and
www.amazon.co.uk--and from stores offering products through our Syndicated
Stores Program. This segment also includes commissions and other amounts earned
from sales of products, new or used, through Amazon Marketplace, and amounts
earned from offerings of products by third-party sellers, if any, under our
Merchant@amazon.com Program.
-- The Services segment includes revenues, direct costs and cost allocations
associated with our business-to-business strategic alliances, including the
Merchant Program (whereby a third-party seller's e-commerce Web site operates
at its own URL using our features and technology), such as www.target.com
beginning summer 2002, and, to the extent full product categories are not also
offered by our online retail stores, the Merchant@amazon.com Program, such as
our strategic alliance with Toysrus.com, as well as the strategic technology
alliance with America Online, Inc. This segment also includes Amazon Auctions,
zShops and Payments, and miscellaneous marketing and promotional agreements.
-- All references to customers mean customer accounts, which are unique e-mail
addresses, established either when a customer's initial order is shipped or
when a customer orders from certain third-party sellers on Amazon.com. Customer
accounts include customers of Amazon Marketplace, Auctions and zShops services
and from our Merchant@amazon.com and Syndicated Stores Programs, but exclude
Amazon.com Payments customers, our catalog customers and the customers of
selected companies with whom we have strategic marketing and promotional
relationships.
-- Trailing twelve-month net sales per active customer account figures include
all amounts earned through Internet sales, including net sales earned from new
or used products sold through Amazon Marketplace, Auctions and zShops services,
and products sold through our Merchant@amazon.com and Syndicated Stores
Programs, but excluding products sold through our catalogs and certain
strategic alliances and sales of inventory to Toysrus.com. A customer is
considered active upon placing an order.
Certificates of deposit $ 18,104
Commercial paper and short-term obligations 38,719
Corporate notes and bonds 37,251
Asset-backed and agency securities 278,678
Treasury notes and bonds 63,032
Equity securities 12,785
--------
$448,569
-- We have pledged pledge n. 1. A solemn binding promise to do, give, or refrain from doing something: signed a pledge never to reveal the secret; a pledge of money to a charity. 2. a. approximately $158 million of our marketable securities as collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although for certain contractual obligations, compared to $167 million as of Dec. 31, 2001. Amounts pledged for standby standby Medtalk adjective Referring to the immediate availability of a certain specialist–anesthesiologist, surgeon, who can be deployed in a medical emergency. Cf Concurrent. letters of credit that guarantee certain contractual obligations, primarily property leases, were $72 million; $46 million is pledged for the swap agreement that hedges the foreign-exchange rate risk on a portion of our 6.875% convertible subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes; and $41 million is pledged for certain of our real estate lease agreements. The amount of marketable securities we are required to pledge A Bailment or delivery of Personal Property to a creditor as security for a debt or for the performance of an act. Sometimes called bailment, pledges are a form of security to assure that a person will repay a debt or perform an act under contract. pursuant to the swap agreement fluctuates with the fair market value of the swap obligation. Certain Definitions and Other -- Our segment reporting includes four segments: U.S. Books, Music and DVD/Video; U.S. Electronics, Tools and Kitchen; International; and Services. Allocation methodologies have been consistently applied. -- The U.S. Books, Music and DVD/Video segment includes revenues, direct costs and cost allocations associated with retail sales from www.amazon.com for books, music, DVDs, video products and magazine subscriptions, and from stores offering these products through our Syndicated Stores Program (whereby a third-party seller's e-commerce Web site uses our e-commerce services and tools, and offers our product selection), such as www.borders.com. This segment also includes commissions and other amounts earned from sales of these products, new or used, through Amazon Marketplace, and will include amounts earned from offerings of these products by third-party sellers, if any, under our Merchant@amazon.com Program (whereby a third-party seller offers its products or services for sale on our Web site, either in our retail stores or in a cobranded store on our Web site, or both). -- The U.S. Electronics, Tools and Kitchen segment includes revenues, direct costs and cost allocations associated with www.amazon.com retail sales of electronics, computers, kitchen products and housewares, camera and photo items, software, cell phones and service, tools and hardware, outdoor living items, and computer and video game products, sold other than through our Toysrus.com strategic alliance, as well as catalog sales of toys and tools and hardware, and will include stores offering these products, if any, through our Syndicated Stores Program. This segment also includes commissions earned from sales of these products, new or used, through Amazon Marketplace and from offerings of these products by third-party sellers under our Merchant@amazon.com Program, such as Circuit City. -- The International segment includes all revenues, direct costs and cost allocations associated with the retail sales of our four internationally focused Web sites--www.amazon.de, www.amazon.fr, www.amazon.co.jp and www.amazon.co.uk--and from stores offering products through our Syndicated Stores Program. This segment also includes commissions and other amounts earned from sales of products, new or used, through Amazon Marketplace, and amounts earned from offerings of products by third-party sellers, if any, under our Merchant@amazon.com Program. -- The Services segment includes revenues, direct costs and cost allocations associated with our business-to-business strategic alliances, including the Merchant Program (whereby a third-party seller's e-commerce Web site operates at its own URL using our features and technology), such as www.target.com beginning summer 2002, and, to the extent full product categories are not also offered by our online retail stores, the Merchant@amazon.com Program, such as our strategic alliance with Toysrus.com, as well as the strategic technology alliance with America Online, Inc. This segment also includes Amazon Auctions, zShops and Payments, and miscellaneous marketing and promotional agreements. -- All references to customers mean customer accounts, which are unique e-mail addresses, established either when a customer's initial order is shipped or when a customer orders from certain third-party sellers on Amazon.com. Customer accounts include customers of Amazon Marketplace, Auctions and zShops services and from our Merchant@amazon.com and Syndicated Stores Programs, but exclude Amazon.com Payments customers, our catalog customers and the customers of selected companies with whom we have strategic marketing and promotional relationships. -- Trailing twelve-month net sales per active customer account figures include all amounts earned through Internet sales, including net sales earned from new or used products sold through Amazon Marketplace, Auctions and zShops services, and products sold through our Merchant@amazon.com and Syndicated Stores Programs, but excluding products sold through our catalogs and certain strategic alliances and sales of inventory to Toysrus.com. A customer is considered active upon placing an order. |
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