[April 23, 2015] |
|
Amazon.com Announces First Quarter Sales up 15% to $22.72 Billion
Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for
its first quarter ended March 31, 2015.
Operating cash flow increased 47% to $7.84 billion for the trailing
twelve months, compared with $5.35 billion for the trailing twelve
months ended March 31, 2014. Free cash flow increased to $3.16 billion
for the trailing twelve months, compared with $1.49 billion for the
trailing twelve months ended March 31, 2014.
Common shares outstanding plus shares underlying stock-based awards
totaled 483 million on March 31, 2015, compared with 476 million one
year ago.
Net sales increased 15% to $22.72 billion in the first quarter, compared
with $19.74 billion in first quarter 2014. Excluding the $1.3 billion
unfavorable impact from year-over-year changes in foreign exchange rates
throughout the quarter, net sales increased 22% compared to first
quarter 2014.
Operating income increased 74% to $255 million in the first quarter,
compared with operating income of $146 million in first quarter 2014.
Net loss was $57 million in the first quarter, or $0.12 per diluted
share, compared with net income of $108 million, or $0.23 per diluted
share, in first quarter 2014.
"Amazon Web Services is a $5 billion business and still growing fast -
in fact it's accelerating," said Jeff Bezos, founder and CEO of
Amazon.com. "Born a decade ago, AWS is a good example of how we approach
ideas and risk-taking at Amazon. We strive to focus relentlessly on the
customer, innovate rapidly, and drive operational excellence. We manage
by two seemingly contradictory traits: impatience to deliver faster and
a willingness to think long term. We are so grateful to our AWS
customers and remain dedicated to inventing on their behalf."
Highlights
-
Amazon launched Dash Button - a small button that Prime customers can
place in their home and use to reorder frequently used household
items. Today, customers can chose from 18 popular brands, such as
Bounty, Huggies, and Clorox.
-
Amazon announced the Dash Replenishment Service (DRS), a new service
that enables connected devices to order goods from Amazon when
supplies are running low - like a coffee maker that automatically
orders more coffee beans. By using DRS, device makers are able to
leverage Amazon's authentication and payment systems, customer
service, and fulfillment network. Early adopters of DRS include
Whirlpool, Quirky, Brother, and Brita.
-
Amazon announced new features for Amazon Fire TV and Fire TV Stick,
including X-Ray (now available directly on your HDTV), support for a
captive portal to connect to Wi-Fi at a hotel or dorm room, and new
shortcuts. Amazon Fire TV also added expandable USB storage and
private listening with support for Bluetooth headphones.
-
In just one year, Amazon Fire TV apps and games selection is up 5x,
including Sling TV, Fox Sports Go, Flappy Birds Family,
TED, WSJ Live, Crossy Road, and Game of
Thrones - A Telltale Game Series.
-
Fire TV Stick launched in the U.K. and Germany, joining Amazon Fire
TV. Pre-orders for Fire TV Stick on Amazon.co.uk and Amazon.de broke
all previous records for Amazon devices in the first week of
availability.
-
Amazon Echo continues to get smarter as more customers use it and
provide feedback - new features include Pandora integration, home
automation, support for sports scores and schedules, traffic reports
and route suggestions, and voice control for customers if listening to
music via Bluetooth. Amazon has released a limited preview of the
Alexa SDK to enable developers, content creators, and service
providers to build apps and experiences for Echo.
-
Amazon launched unlimited cloud storage with Amazon Cloud Drive - two
new storage plans for customers to securely store new and existing
content collections. The Unlimited Everything Plan provides unlimited
storage for photos, videos, movies, music, and files, and the
Unlimited Photos Plan provides unlimited photo storage plus 5 GB of
additional storage for videos, documents, or other files - all for a
low annual fee. Customers can sign up for a free 3-month trial on
either plan.
-
Prime Now has expanded to Miami, Baltimore, Dallas, Atlanta, and
Austin. Prime members can choose from tens of thousands of daily
essentials through a mobile app. With Prime Now, two-hour delivery is
free and one-hour delivery is available for $7.99.
-
Amazon Prime celebrated its 10-year anniversary with tens of millions
of Prime members around the world. Prime members in the U.S. enjoy
unlimited Free Two-Day Shipping on more than 20 million items,
unlimited streaming of tens of thousands of movies and TV episodes
with Prime Instant Video, more than one million songs and hundreds of
playlists with Prime Music, unlimited photo storage with Prime Photos,
and access to more than 800,000 books to borrow with the Kindle
Owners' Lending Library.
-
Amazon Studios announced that full seasons of Mad Dogs, The
Man in the High Castle, The New Yorker Presents, and
children's shows Just Add Magic and The Stinky & Dirty Show
will debut exclusively for Prime members in the U.S., U.K., and
Germany. Amazon Studios also greenlit second seasons of Mozart in
the Jungle and Bosch, as well as original kids series Tumble
Leaf, Creative Galaxy, Annedroids, and Gortimer
Gibbon's Life on Normal Street.
-
Amazon introduced Amazon@Purdue, our first staffed on-campus pickup
and drop-off location at Purdue University. Amazon Student and Amazon
Prime members get Free One-Day Shipping on textbooks and Free One-Day
Pickup on over one million items when shipped to the Amazon@Purdue
location.
-
Amazon officially launched Write On by Kindle, an online community
where writers and readers share in the creative process. Readers can
check out works-in-progress - from short stories to novels - and offer
feedback, or they can try their hand at writing a story themselves.
-
Amazon launched Amazon Home Services, a new marketplace for on-demand
professional services, backed by Amazon's Happiness Guarantee.
Customers can browse, purchase, and schedule hundreds of professional
services directly on Amazon.com in less than 60 seconds. Amazon Home
Services features handpicked pros offering upfront pricing on
pre-packaged services with helpful reviews from customers that have
made verified purchases.
-
Poppy J. Anderson became the first German author to sell over one
million Kindle books using Kindle Direct Publishing (KDP), joining the
Kindle Million Club with many other internationally successful KDP
authors such as John Locke, J.A. Konrath, and Tina Folsom.
-
Amazon expanded public fulfillment center tours to the U.K., Germany,
France, and Poland. Visit www.amazon.com/fctours for information on
available tour locations, dates, and times.
-
Amazon Prime members in Spain now receive Free One-Day Shipping with
their Prime subscription.
-
Amazon Fashion, which has emerged as a top category on Amazon.in,
partnered with the Fashion Design Council of India as the official
title sponsor of the 25th edition of India Fashion Week.
-
Amazon.in launched the Amazon Seller App, a best-in-class mobile app
for sellers in India, which makes it easy and convenient for sellers
to update inventory, source and list new items on Amazon.in, and
respond faster to customer queries.
-
Amazon.in launched Kirana Now, a pilot service that delivers everyday
essentials to customers within two to four hours. This local service
utilizes India's vast network of small and medium businesses to
achieve quick, easy, and convenient delivery for Amazon.in customers.
-
Amazon China opened an Amazon international brand flagship store on
Tmall, which features thousands of Amazon China's popular, directly
imported products. Additionally, Amazon Global Store selection on
Amazon.cn has grown to over one million items.
-
AWS announced Amazon Machine Learning, a fully managed service that
makes it easy for any developer to use historical data to build
predictive models that can be used for a broad array of purposes,
including detecting problematic transactions, preventing customer
churn, and improving customer support. Amazon Machine Learning is
based on the same proven, highly scalable machine learning technology
used by developers across Amazon to generate more than 50 billion
predictions a week.
-
AWS announced AWS Marketplace for Desktop Apps, a new category on the
AWS Marketplace that makes it easy for customers to search for and buy
applications for their Amazon WorkSpaces cloud-based desktops.
Customers can choose from a broad selection of more than 100
applications in eleven categories, and pay by the month for the
applications they use. To simplify deployment of these desktop
applications, AWS also announced Amazon WorkSpaces Application Manager
(Amazon WAM), a new service that packages and delivers applications to
Amazon WorkSpaces.
-
AWS announced the general availability of AWS Lambda, a compute
service that runs developers' code in response to events and
automatically manages the required compute resources, making it easy
to build and manage applications that respond quickly to new
information. AWS also launched several new features to make it easy
for mobile developers to use Lambda for mobile, tablet, and Internet
of Things applications.
-
AWS announced the general availability of the Amazon EC2 Container
Service, a high-performance container management service that makes it
easy to run distributed applications using Docker containers on AWS.
AWS also added the ability to use Elastic Block Store ("EBS") and
Elastic Load Balancing ("ELB") with the EC2 Container Service, as well
as a new, flexible container scheduler that combine to make the EC2
Container Service the best place to run containers in production.
-
AWS introduced the latest generation of Amazon EC2 Dense-storage (D2)
instances, and larger, faster Amazon Elastic Block Storage (Amazon
EBS) volumes. To support very large transactional databases and big
data analytics, the new Amazon EC2 D2 instances offer up to 48 TB of
storage and up to 3,500 MB per second of disk read throughput, while
the new Amazon EBS volumes store up to 16 TB and process up to 20,000
input/output operations per second (IOPS).
Financial Guidance
The following forward-looking statements reflect Amazon.com's
expectations as of April 23, 2015, and are subject to substantial
uncertainty. Our results are inherently unpredictable and may be
materially affected by many factors, such as fluctuations in foreign
exchange rates, changes in global economic conditions and consumer
spending, world events, the rate of growth of the Internet and online
commerce, and the various factors detailed below.
Second Quarter 2015 Guidance
-
Net sales are expected to be between $20.6 billion and $22.8 billion,
or to grow between 7% and 18% compared with second quarter 2014.
-
Operating income (loss) is expected to be between $(500) million and
$50 million, compared to $(15) million in second quarter 2014.
-
This guidance includes approximately $600 million for stock-based
compensation and amortization of intangible assets, and it assumes,
among other things, that no additional business acquisitions,
investments, restructurings, or legal settlements are concluded and
that there are no further revisions to stock-based compensation
estimates.
A conference call will be webcast live today at 2:30 p.m. PT/5:30 p.m.
ET, and will be available for at least three months at
www.amazon.com/ir. This call will contain forward-looking statements and
other material information regarding the Company's financial and
operating results.
These forward-looking statements are inherently difficult to predict.
Actual results could differ materially for a variety of reasons,
including, in addition to the factors discussed above, 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 from products as compared with services, the extent to which we
owe income taxes, competition, management of growth, potential
fluctuations in operating results, international growth and expansion,
the outcomes of legal proceedings and claims, fulfillment, sortation,
delivery, and data center optimization, risks of inventory management,
seasonality, the degree to which the Company enters into, maintains, and
develops commercial agreements, acquisitions and strategic transactions,
payments risks, and risks of fulfillment throughput and productivity.
Other risks and uncertainties include, among others, risks related to
new products, services, and technologies, system interruptions,
government regulation and taxation, and fraud. In addition, the current
global economic climate amplifies many of these risks. 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 ("SEC"), including its most recent Annual Report on
Form 10-K and subsequent filings.
Our investor relations website is www.amazon.com/ir and we encourage
investors to use it as a way of easily finding information about us. We
promptly make available on this website, free of charge, the reports
that we file or furnish with the SEC, corporate governance information
(including our Code of Business Conduct and Ethics), and select press
releases and social media postings, which may contain material
information about us, and you may subscribe to be notified of new
information posted to this site.
About Amazon
Amazon.com opened on the World Wide Web in July 1995. The company is
guided by four principles: customer obsession rather than competitor
focus, passion for invention, commitment to operational excellence, and
long-term thinking. Customer reviews, 1-Click shopping, personalized
recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct
Publishing, Kindle, Fire phone, Fire tablets, and Fire TV are some of
the products and services pioneered by Amazon.
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AMAZON.COM, INC.
|
Consolidated Statements of Cash Flows
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
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Twelve Months Ended March 31,
|
|
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2015
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|
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2014
|
|
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2015
|
|
|
2014
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
$
|
14,557
|
|
|
|
$
|
8,658
|
|
|
|
$
|
5,074
|
|
|
|
$
|
4,481
|
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
(57
|
)
|
|
|
108
|
|
|
|
(405
|
)
|
|
|
299
|
|
Adjustments to reconcile net income (loss) to net cash from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of property and equipment, including internal-use
software and website development, and other amortization, including
capitalized content costs
|
|
|
1,426
|
|
|
|
1,010
|
|
|
|
5,162
|
|
|
|
3,563
|
|
Stock-based compensation
|
|
|
407
|
|
|
|
321
|
|
|
|
1,582
|
|
|
|
1,226
|
|
Other operating expense (income), net
|
|
|
44
|
|
|
|
35
|
|
|
|
139
|
|
|
|
117
|
|
Losses (gains) on sales of marketable securities, net
|
|
|
1
|
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
2
|
|
Other expense (income), net
|
|
|
91
|
|
|
|
(50
|
)
|
|
|
203
|
|
|
|
48
|
|
Deferred income taxes
|
|
|
(2
|
)
|
|
|
(185
|
)
|
|
|
(136
|
)
|
|
|
(261
|
)
|
Excess tax benefits from stock-based compensation
|
|
|
(22
|
)
|
|
|
(121
|
)
|
|
|
94
|
|
|
|
(199
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
|
721
|
|
|
|
699
|
|
|
|
(1,172
|
)
|
|
|
(1,245
|
)
|
Accounts receivable, net and other
|
|
|
441
|
|
|
|
727
|
|
|
|
(1,324
|
)
|
|
|
(849
|
)
|
Accounts payable
|
|
|
(4,249
|
)
|
|
|
(4,675
|
)
|
|
|
2,184
|
|
|
|
1,400
|
|
Accrued expenses and other
|
|
|
(940
|
)
|
|
|
(731
|
)
|
|
|
500
|
|
|
|
708
|
|
Additions to unearned revenue
|
|
|
1,803
|
|
|
|
1,092
|
|
|
|
5,144
|
|
|
|
3,100
|
|
Amortization of previously unearned revenue
|
|
|
(1,163
|
)
|
|
|
(732
|
)
|
|
|
(4,123
|
)
|
|
|
(2,564
|
)
|
Net cash provided by (used in) operating activities
|
|
|
(1,499
|
)
|
|
|
(2,502
|
)
|
|
|
7,845
|
|
|
|
5,345
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment, including internal-use software
and website development
|
|
|
(871
|
)
|
|
|
(1,080
|
)
|
|
|
(4,684
|
)
|
|
|
(3,854
|
)
|
Acquisitions, net of cash acquired, and other
|
|
|
(365
|
)
|
|
|
-
|
|
|
|
(1,345
|
)
|
|
|
(208
|
)
|
Sales and maturities of marketable securities
|
|
|
375
|
|
|
|
593
|
|
|
|
3,131
|
|
|
|
2,299
|
|
Purchases of marketable securities
|
|
|
(986
|
)
|
|
|
(437
|
)
|
|
|
(3,091
|
)
|
|
|
(2,487
|
)
|
Net cash provided by (used in) investing activities
|
|
|
(1,847
|
)
|
|
|
(924
|
)
|
|
|
(5,989
|
)
|
|
|
(4,250
|
)
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Excess tax benefits from stock-based compensation
|
|
|
22
|
|
|
|
121
|
|
|
|
(94
|
)
|
|
|
199
|
|
Proceeds from long-term debt
|
|
|
183
|
|
|
|
65
|
|
|
|
6,478
|
|
|
|
426
|
|
Repayments of long-term debt
|
|
|
(316
|
)
|
|
|
(70
|
)
|
|
|
(760
|
)
|
|
|
(272
|
)
|
Principal repayments of capital lease obligations
|
|
|
(502
|
)
|
|
|
(249
|
)
|
|
|
(1,537
|
)
|
|
|
(863
|
)
|
Principal repayments of finance lease obligations
|
|
|
(39
|
)
|
|
|
(42
|
)
|
|
|
(132
|
)
|
|
|
(47
|
)
|
Net cash provided by (used in) financing activities
|
|
|
(652
|
)
|
|
|
(175
|
)
|
|
|
3,955
|
|
|
|
(557
|
)
|
Foreign-currency effect on cash and cash equivalents
|
|
|
(322
|
)
|
|
|
17
|
|
|
|
(648
|
)
|
|
|
55
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(4,320
|
)
|
|
|
(3,584
|
)
|
|
|
5,163
|
|
|
|
593
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
|
$
|
10,237
|
|
|
|
$
|
5,074
|
|
|
|
$
|
10,237
|
|
|
|
$
|
5,074
|
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest on long-term debt
|
|
|
$
|
17
|
|
|
|
$
|
18
|
|
|
|
$
|
90
|
|
|
|
$
|
102
|
|
Cash paid for income taxes (net of refunds)
|
|
|
55
|
|
|
|
38
|
|
|
|
194
|
|
|
|
121
|
|
Property and equipment acquired under capital leases
|
|
|
954
|
|
|
|
716
|
|
|
|
4,246
|
|
|
|
2,243
|
|
Property and equipment acquired under build-to-suit leases
|
|
|
103
|
|
|
|
126
|
|
|
|
897
|
|
|
|
852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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AMAZON.COM, INC.
|
Consolidated Statements of Operations
|
(in millions, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2015
|
|
|
2014
|
Net product sales
|
|
|
$
|
17,084
|
|
|
|
$
|
15,705
|
|
Net service sales
|
|
|
5,633
|
|
|
|
4,036
|
|
Total net sales
|
|
|
22,717
|
|
|
|
19,741
|
|
Operating expenses (1):
|
|
|
|
|
|
|
Cost of sales
|
|
|
15,395
|
|
|
|
14,055
|
|
Fulfillment
|
|
|
2,759
|
|
|
|
2,317
|
|
Marketing
|
|
|
1,083
|
|
|
|
870
|
|
Technology and content
|
|
|
2,754
|
|
|
|
1,991
|
|
General and administrative
|
|
|
427
|
|
|
|
327
|
|
Other operating expense (income), net
|
|
|
44
|
|
|
|
35
|
|
Total operating expenses
|
|
|
22,462
|
|
|
|
19,595
|
|
Income (loss) from operations
|
|
|
255
|
|
|
|
146
|
|
Interest income
|
|
|
11
|
|
|
|
11
|
|
Interest expense
|
|
|
(115
|
)
|
|
|
(42
|
)
|
Other income (expense), net
|
|
|
(130
|
)
|
|
|
5
|
|
Total non-operating income (expense)
|
|
|
(234
|
)
|
|
|
(26
|
)
|
Income (loss) before income taxes
|
|
|
21
|
|
|
|
120
|
|
Provision for income taxes
|
|
|
(71
|
)
|
|
|
(73
|
)
|
Equity-method investment activity, net of tax
|
|
|
(7
|
)
|
|
|
61
|
|
Net income (loss)
|
|
|
$
|
(57
|
)
|
|
|
$
|
108
|
|
Basic earnings per share
|
|
|
$
|
(0.12
|
)
|
|
|
$
|
0.23
|
|
Diluted earnings per share
|
|
|
$
|
(0.12
|
)
|
|
|
$
|
0.23
|
|
Weighted average shares used in computation of earnings per share:
|
|
|
|
|
|
|
Basic
|
|
|
465
|
|
|
|
460
|
|
Diluted
|
|
|
465
|
|
|
|
468
|
|
_____________
|
|
|
|
|
|
|
(1) Includes stock-based compensation as follows:
|
|
|
|
|
|
|
Fulfillment
|
|
|
$
|
90
|
|
|
|
$
|
81
|
|
Marketing
|
|
|
35
|
|
|
|
27
|
|
Technology and content
|
|
|
233
|
|
|
|
169
|
|
General and administrative
|
|
|
49
|
|
|
|
44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Consolidated Statements of Comprehensive Income (Loss)
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2015
|
|
|
2014
|
Net income (loss)
|
|
|
$
|
(57
|
)
|
|
|
$
|
108
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
Foreign currency translation adjustments, net of tax of $(1) and $0
|
|
|
(243
|
)
|
|
|
27
|
Net change in unrealized gains on available-for-sale securities:
|
|
|
|
|
|
|
Unrealized gains, net of tax of $0 and $(1)
|
|
|
1
|
|
|
|
1
|
Reclassification adjustment for losses included in "Other income
(expense), net," net of tax of $0 and $0
|
|
|
1
|
|
|
|
-
|
Net unrealized gains on available-for-sale securities
|
|
|
2
|
|
|
|
1
|
Total other comprehensive income (loss)
|
|
|
(241
|
)
|
|
|
28
|
Comprehensive income (loss)
|
|
|
$
|
(298
|
)
|
|
|
$
|
136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Segment Information
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2015
|
|
|
2014
|
North America
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
13,406
|
|
|
|
$
|
10,808
|
|
Segment operating expenses (1)
|
|
|
12,889
|
|
|
|
10,518
|
|
Segment operating income (loss)
|
|
|
$
|
517
|
|
|
|
$
|
290
|
|
International
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
7,745
|
|
|
|
$
|
7,883
|
|
Segment operating expenses (1)
|
|
|
7,821
|
|
|
|
7,916
|
|
Segment operating income (loss)
|
|
|
$
|
(76
|
)
|
|
|
$
|
(33
|
)
|
AWS
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
1,566
|
|
|
|
$
|
1,050
|
|
Segment operating expenses (1)
|
|
|
1,301
|
|
|
|
805
|
|
Segment operating income (loss)
|
|
|
$
|
265
|
|
|
|
$
|
245
|
|
Consolidated
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
22,717
|
|
|
|
$
|
19,741
|
|
Segment operating expenses (1)
|
|
|
22,011
|
|
|
|
19,239
|
|
Segment operating income (loss)
|
|
|
706
|
|
|
|
502
|
|
Stock-based compensation
|
|
|
(407
|
)
|
|
|
(321
|
)
|
Other operating income (expense), net
|
|
|
(44
|
)
|
|
|
(35
|
)
|
Income (loss) from operations
|
|
|
255
|
|
|
|
146
|
|
Total non-operating income (expense)
|
|
|
(234
|
)
|
|
|
(26
|
)
|
Provision for income taxes
|
|
|
(71
|
)
|
|
|
(73
|
)
|
Equity-method investment activity, net of tax
|
|
|
(7
|
)
|
|
|
61
|
|
Net income (loss)
|
|
|
$
|
(57
|
)
|
|
|
$
|
108
|
|
Segment Highlights:
|
|
|
|
|
|
|
Y/Y net sales growth:
|
|
|
|
|
|
|
North America
|
|
|
24
|
%
|
|
|
23
|
%
|
International
|
|
|
(2
|
)
|
|
|
18
|
|
AWS
|
|
|
49
|
|
|
|
69
|
|
Consolidated
|
|
|
15
|
|
|
|
23
|
|
Net sales mix:
|
|
|
|
|
|
|
North America
|
|
|
59
|
%
|
|
|
55
|
%
|
International
|
|
|
34
|
|
|
|
40
|
|
AWS
|
|
|
7
|
|
|
|
5
|
|
Consolidated
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
______________________________
(1) Excludes stock-based compensation and "Other operating expense
(income), net," which are not allocated to segments.
|
|
|
|
|
|
AMAZON.COM, INC.
|
Supplemental Net Sales Information
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2015
|
|
|
2014
|
Net Sales:
|
|
|
|
North America
|
|
|
|
|
|
|
Media
|
|
|
$
|
2,969
|
|
|
|
$
|
2,825
|
|
Electronics and other general merchandise
|
|
|
10,250
|
|
|
|
7,829
|
|
Other (1)
|
|
|
187
|
|
|
|
154
|
|
Total North America
|
|
|
$
|
13,406
|
|
|
|
$
|
10,808
|
|
International
|
|
|
|
|
|
|
Media
|
|
|
$
|
2,320
|
|
|
|
$
|
2,642
|
|
Electronics and other general merchandise
|
|
|
5,378
|
|
|
|
5,188
|
|
Other (1)
|
|
|
47
|
|
|
|
53
|
|
Total International
|
|
|
$
|
7,745
|
|
|
|
$
|
7,883
|
|
|
|
|
|
|
|
|
Year-over-year Percentage Growth:
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
Media
|
|
|
5
|
%
|
|
|
12
|
%
|
Electronics and other general merchandise
|
|
|
31
|
|
|
|
28
|
|
Other
|
|
|
22
|
|
|
|
18
|
|
Total North America
|
|
|
24
|
|
|
|
23
|
|
International
|
|
|
|
|
|
|
Media
|
|
|
(12
|
)%
|
|
|
4
|
%
|
Electronics and other general merchandise
|
|
|
4
|
|
|
|
27
|
|
Other
|
|
|
(12
|
)
|
|
|
13
|
|
Total International
|
|
|
(2
|
)
|
|
|
18
|
|
Year-over-year Percentage Growth, excluding the effect of foreign
exchange rates:
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
Media
|
|
|
5
|
%
|
|
|
13
|
%
|
Electronics and other general merchandise
|
|
|
31
|
|
|
|
28
|
|
Other
|
|
|
22
|
|
|
|
19
|
|
Total North America
|
|
|
24
|
|
|
|
23
|
|
International
|
|
|
|
|
|
|
Media
|
|
|
2
|
%
|
|
|
4
|
%
|
Electronics and other general merchandise
|
|
|
21
|
|
|
|
26
|
|
Other
|
|
|
2
|
|
|
|
11
|
|
Total International
|
|
|
14
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
______________________________
(1) Includes sales from non-retail activities, such as certain
advertising services and our co-branded credit card agreements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Consolidated Balance Sheets
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
March 31, 2015
|
|
|
December 31, 2014
|
|
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
10,237
|
|
|
|
$
|
14,557
|
|
Marketable securities
|
|
|
3,544
|
|
|
|
2,859
|
|
Inventories
|
|
|
7,369
|
|
|
|
8,299
|
|
Accounts receivable, net and other
|
|
|
4,772
|
|
|
|
5,612
|
|
Total current assets
|
|
|
25,922
|
|
|
|
31,327
|
|
Property and equipment, net
|
|
|
17,736
|
|
|
|
16,967
|
|
Goodwill
|
|
|
3,491
|
|
|
|
3,319
|
|
Other assets
|
|
|
2,926
|
|
|
|
2,892
|
|
Total assets
|
|
|
$
|
50,075
|
|
|
|
$
|
54,505
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
11,917
|
|
|
|
$
|
16,459
|
|
Accrued expenses and other
|
|
|
8,840
|
|
|
|
9,807
|
|
Unearned revenue
|
|
|
2,420
|
|
|
|
1,823
|
|
Total current liabilities
|
|
|
23,177
|
|
|
|
28,089
|
|
Long-term debt
|
|
|
8,257
|
|
|
|
8,265
|
|
Other long-term liabilities
|
|
|
7,768
|
|
|
|
7,410
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Preferred stock, $0.01 par value:
|
|
|
|
|
|
|
Authorized shares - 500
|
|
|
|
|
|
|
Issued and outstanding shares - none
|
|
|
-
|
|
|
|
-
|
|
Common stock, $0.01 par value:
|
|
|
|
|
|
|
Authorized shares - 5,000
|
|
|
|
|
|
|
Issued shares - 489 and 488
|
|
|
|
|
|
|
Outstanding shares - 466 and 465
|
|
|
5
|
|
|
|
5
|
|
Treasury stock, at cost
|
|
|
(1,837
|
)
|
|
|
(1,837
|
)
|
Additional paid-in capital
|
|
|
11,565
|
|
|
|
11,135
|
|
Accumulated other comprehensive loss
|
|
|
(752
|
)
|
|
|
(511
|
)
|
Retained earnings
|
|
|
1,892
|
|
|
|
1,949
|
|
Total stockholders' equity
|
|
|
10,873
|
|
|
|
10,741
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
50,075
|
|
|
|
$
|
54,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Supplemental Financial Information and Business Metrics
|
(in millions, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2014
|
|
Q2 2014
|
|
Q3 2014
|
|
Q4 2014
|
|
Q1 2015
|
|
Y/Y % Change
|
Cash Flows and Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow -- trailing twelve months (TTM)
|
|
|
$
|
5,345
|
|
|
$
|
5,327
|
|
|
$
|
5,705
|
|
|
$
|
6,842
|
|
|
$
|
7,845
|
|
|
47
|
%
|
Purchases of property and equipment (incl. internal-use software &
website development) -- TTM
|
|
|
$
|
3,854
|
|
|
$
|
4,288
|
|
|
$
|
4,628
|
|
|
$
|
4,893
|
|
|
$
|
4,684
|
|
|
22
|
%
|
Principal repayments of capital lease obligations -- TTM
|
|
|
$
|
863
|
|
|
$
|
969
|
|
|
$
|
1,103
|
|
|
$
|
1,285
|
|
|
$
|
1,537
|
|
|
78
|
%
|
Principal repayments of finance lease obligations -- TTM
|
|
|
$
|
47
|
|
|
$
|
60
|
|
|
$
|
73
|
|
|
$
|
135
|
|
|
$
|
132
|
|
|
178
|
%
|
Property and equipment acquired under capital leases -- TTM
|
|
|
$
|
2,243
|
|
|
$
|
2,716
|
|
|
$
|
3,347
|
|
|
$
|
4,008
|
|
|
$
|
4,246
|
|
|
89
|
%
|
Free cash flow -- TTM (1)
|
|
|
$
|
1,491
|
|
|
$
|
1,039
|
|
|
$
|
1,077
|
|
|
$
|
1,949
|
|
|
$
|
3,161
|
|
|
112
|
%
|
Free cash flow -- TTM Y/Y growth (decline)
|
|
|
744
|
%
|
|
292
|
%
|
|
178
|
%
|
|
(4
|
)%
|
|
112
|
%
|
|
N/A
|
Invested capital (2)
|
|
|
$
|
16,681
|
|
|
$
|
17,743
|
|
|
$
|
18,715
|
|
|
$
|
21,021
|
|
|
$
|
23,090
|
|
|
38
|
%
|
Return on invested capital (3)
|
|
|
9
|
%
|
|
6
|
%
|
|
6
|
%
|
|
9
|
%
|
|
14
|
%
|
|
N/A
|
Free cash flow less lease principal repayments -- TTM (4)
|
|
|
$
|
581
|
|
|
$
|
10
|
|
|
$
|
(99
|
)
|
|
$
|
529
|
|
|
$
|
1,492
|
|
|
157
|
%
|
Free cash flow less finance principal lease repayments and capital
acquired under capital leases -- TTM (5)
|
|
|
$
|
(799
|
)
|
|
$
|
(1,737
|
)
|
|
$
|
(2,343
|
)
|
|
$
|
(2,194
|
)
|
|
$
|
(1,217
|
)
|
|
52
|
%
|
Common shares and stock-based awards outstanding
|
|
|
476
|
|
|
480
|
|
|
481
|
|
|
483
|
|
|
483
|
|
|
2
|
%
|
Common shares outstanding
|
|
|
460
|
|
|
462
|
|
|
463
|
|
|
465
|
|
|
466
|
|
|
1
|
%
|
Stock awards outstanding
|
|
|
16
|
|
|
18
|
|
|
18
|
|
|
18
|
|
|
17
|
|
|
11
|
%
|
Stock awards outstanding -- % of common shares outstanding
|
|
|
3.5
|
%
|
|
3.9
|
%
|
|
3.9
|
%
|
|
3.8
|
%
|
|
3.8
|
%
|
|
N/A
|
Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide (WW) net sales
|
|
|
$
|
19,741
|
|
|
$
|
19,340
|
|
|
$
|
20,579
|
|
|
$
|
29,328
|
|
|
$
|
22,717
|
|
|
15
|
%
|
WW net sales -- Y/Y growth, excluding F/X
|
|
|
23
|
%
|
|
22
|
%
|
|
20
|
%
|
|
18
|
%
|
|
22
|
%
|
|
N/A
|
WW net sales -- TTM
|
|
|
$
|
78,124
|
|
|
$
|
81,759
|
|
|
$
|
85,246
|
|
|
$
|
88,988
|
|
|
$
|
91,963
|
|
|
18
|
%
|
WW net sales -- TTM Y/Y growth, excluding F/X
|
|
|
24
|
%
|
|
23
|
%
|
|
22
|
%
|
|
20
|
%
|
|
20
|
%
|
|
N/A
|
Operating income (loss)
|
|
|
$
|
146
|
|
|
$
|
(15
|
)
|
|
$
|
(544
|
)
|
|
$
|
591
|
|
|
$
|
255
|
|
|
74
|
%
|
Operating income/loss -- Y/Y growth (decline), excluding F/X
|
|
|
(29
|
)%
|
|
(158
|
)%
|
|
N/A
|
|
22
|
%
|
|
90
|
%
|
|
N/A
|
Operating margin -- % of WW net sales
|
|
|
0.7
|
%
|
|
(0.1
|
)%
|
|
(2.6
|
)%
|
|
2.0
|
%
|
|
1.1
|
%
|
|
N/A
|
Operating income -- TTM
|
|
|
$
|
710
|
|
|
$
|
617
|
|
|
$
|
97
|
|
|
$
|
178
|
|
|
$
|
287
|
|
|
(60
|
)%
|
Operating income -- TTM Y/Y growth (decline), excluding F/X
|
|
|
7
|
%
|
|
(11
|
)%
|
|
(94
|
)%
|
|
(79
|
)%
|
|
(56
|
)%
|
|
N/A
|
Operating margin -- TTM % of WW net sales
|
|
|
0.9
|
%
|
|
0.8
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
|
0.3
|
%
|
|
N/A
|
Net income (loss)
|
|
|
$
|
108
|
|
|
$
|
(126
|
)
|
|
$
|
(437
|
)
|
|
$
|
214
|
|
|
$
|
(57
|
)
|
|
(153
|
)%
|
Net income (loss) per diluted share
|
|
|
$
|
0.23
|
|
|
$
|
(0.27
|
)
|
|
$
|
(0.95
|
)
|
|
$
|
0.45
|
|
|
$
|
(0.12
|
)
|
|
(152
|
)%
|
Net income (loss) -- TTM
|
|
|
$
|
299
|
|
|
$
|
181
|
|
|
$
|
(216
|
)
|
|
$
|
(241
|
)
|
|
$
|
(405
|
)
|
|
(236
|
)%
|
Net income (loss) per diluted share -- TTM
|
|
|
$
|
0.64
|
|
|
$
|
0.39
|
|
|
$
|
(0.47
|
)
|
|
$
|
(0.52
|
)
|
|
$
|
(0.88
|
)
|
|
(234
|
)%
|
______________________________
|
(1)
|
|
"Free cash flow" is defined as net cash provided by operating
activities less cash expenditures for purchases of property and
equipment, including internal-use software and website development.
|
(2)
|
|
Average Total Assets minus Current Liabilities (excluding current
portion of Long-Term Debt) over five quarter ends.
|
(3)
|
|
TTM Free Cash Flow divided by Invested Capital.
|
(4)
|
|
"Free cash flow less lease principal repayments" is defined as net
cash provided by operating activities, less (i) purchases of
property and equipment, including internal-use software and website
development, (ii) principal repayments of capital lease obligations,
and (iii) principal repayments of finance lease obligations. Free
cash flow less lease principal repayments approximates the actual
payments of cash for our capital and finance leases.
|
(5)
|
|
"Free cash flow less finance principal lease repayments and capital
acquired under capital leases" is defined as net cash provided by
operating activities, less (i) purchases of property and equipment,
including internal-use software and website development, (ii)
principal repayments of finance lease obligations, and (iii)
property and equipment acquired under capital leases. In this
measure, property and equipment acquired under capital leases is
reflected as if these assets had been purchased for cash, which is
not the case as these assets have been leased.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Supplemental Financial Information and Business Metrics
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2014
|
|
Q2 2014
|
|
Q3 2014
|
|
Q4 2014
|
|
Q1 2015
|
|
Y/Y % Change
|
Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
10,808
|
|
|
$
|
10,994
|
|
|
$
|
11,699
|
|
|
$
|
17,333
|
|
|
$
|
|
13,406
|
|
|
|
24
|
|
%
|
Net sales -- Y/Y growth, excluding F/X
|
|
|
23
|
%
|
|
25
|
%
|
|
23
|
%
|
|
21
|
%
|
|
24
|
|
%
|
|
N/A
|
Net sales -- TTM
|
|
|
|
|
|
|
|
|
$
|
50,834
|
|
|
$
|
|
53,432
|
|
|
|
23
|
|
%
|
Operating income (loss)
|
|
|
$
|
290
|
|
|
$
|
329
|
|
|
$
|
(60
|
)
|
|
$
|
733
|
|
|
$
|
|
517
|
|
|
|
79
|
|
%
|
Operating income/loss -- Y/Y growth (decline), excluding F/X
|
|
|
|
|
|
|
|
|
|
|
77
|
|
%
|
|
N/A
|
Operating margin -- % of North America net sales
|
|
|
2.7
|
%
|
|
3.0
|
%
|
|
(0.5
|
)%
|
|
4.2
|
%
|
|
3.9
|
|
%
|
|
N/A
|
Operating income -- TTM
|
|
|
|
|
|
|
|
|
$
|
1,292
|
|
|
$
|
|
1,520
|
|
|
|
N/A
|
Operating margin -- TTM % of North America net sales
|
|
|
|
|
|
|
|
|
2.5
|
%
|
|
2.8
|
|
%
|
|
N/A
|
International Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
7,883
|
|
|
$
|
7,341
|
|
|
$
|
7,711
|
|
|
$
|
10,575
|
|
|
$
|
|
7,745
|
|
|
|
(2
|
|
)%
|
Net sales -- Y/Y growth, excluding F/X
|
|
|
18
|
%
|
|
14
|
%
|
|
13
|
%
|
|
12
|
%
|
|
14
|
|
%
|
|
N/A
|
Net sales -- TTM
|
|
|
|
|
|
|
|
|
$
|
33,510
|
|
|
$
|
|
33,371
|
|
|
|
7
|
|
%
|
Net sales -- TTM % of WW net sales
|
|
|
|
|
|
|
|
|
38
|
%
|
|
36
|
|
%
|
|
N/A
|
Operating income (loss)
|
|
|
$
|
(33
|
)
|
|
$
|
(2
|
)
|
|
$
|
(174
|
)
|
|
$
|
65
|
|
|
$
|
|
(76
|
|
)
|
|
137
|
|
%
|
Operating income/loss -- Y/Y growth (decline), excluding F/X
|
|
|
|
|
|
|
|
|
|
|
N/A
|
|
N/A
|
Operating margin -- % of International net sales
|
|
|
(0.4
|
)%
|
|
-
|
%
|
|
(2.3
|
)%
|
|
0.6
|
%
|
|
(1.0
|
|
)%
|
|
N/A
|
Operating income (loss) -- TTM
|
|
|
|
|
|
|
|
|
$
|
(144
|
)
|
|
$
|
|
(188
|
|
)
|
|
N/A
|
Operating margin -- TTM % of International net sales
|
|
|
|
|
|
|
|
|
(0.4
|
)%
|
|
(0.6
|
|
)%
|
|
N/A
|
AWS Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
1,050
|
|
|
$
|
1,005
|
|
|
$
|
1,169
|
|
|
$
|
1,420
|
|
|
$
|
|
1,566
|
|
|
|
49
|
|
%
|
Net sales -- Y/Y growth, excluding F/X
|
|
|
69
|
%
|
|
43
|
%
|
|
43
|
%
|
|
47
|
%
|
|
49
|
|
%
|
|
N/A
|
Net sales -- TTM
|
|
|
|
|
|
|
|
|
$
|
4,644
|
|
|
$
|
|
5,160
|
|
|
|
46
|
|
%
|
Net sales -- TTM % of WW net sales
|
|
|
|
|
|
|
|
|
5
|
%
|
|
6
|
|
%
|
|
N/A
|
Operating income
|
|
|
$
|
245
|
|
|
$
|
77
|
|
|
$
|
98
|
|
|
$
|
240
|
|
|
$
|
|
265
|
|
|
|
8
|
|
%
|
Operating income -- Y/Y growth (decline), excluding F/X
|
|
|
|
|
|
|
|
|
|
|
(13
|
|
)%
|
|
N/A
|
Operating margin -- % of AWS net sales
|
|
|
23.3
|
%
|
|
7.7
|
%
|
|
8.4
|
%
|
|
16.9
|
%
|
|
16.9
|
|
%
|
|
N/A
|
Operating income -- TTM
|
|
|
|
|
|
|
|
|
$
|
660
|
|
|
$
|
|
680
|
|
|
|
N/A
|
Operating margin -- TTM % of AWS net sales
|
|
|
|
|
|
|
|
|
14.2
|
%
|
|
13.2
|
|
%
|
|
N/A
|
Consolidated Segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (6)
|
|
|
$
|
19,239
|
|
|
$
|
18,936
|
|
|
$
|
20,715
|
|
|
$
|
28,290
|
|
|
$
|
|
22,011
|
|
|
|
14
|
|
%
|
Operating expenses -- TTM (6)
|
|
|
$
|
76,069
|
|
|
$
|
79,710
|
|
|
$
|
83,599
|
|
|
$
|
87,180
|
|
|
$
|
|
89,951
|
|
|
|
18
|
|
%
|
Operating income (loss)
|
|
|
$
|
502
|
|
|
$
|
404
|
|
|
$
|
(136
|
)
|
|
$
|
1,038
|
|
|
$
|
|
706
|
|
|
|
41
|
|
%
|
Operating income/loss -- Y/Y growth (decline), excluding F/X
|
|
|
10
|
%
|
|
(9
|
)%
|
|
(151
|
)%
|
|
22
|
%
|
|
45
|
|
%
|
|
N/A
|
Operating margin -- % of Consolidated net sales
|
|
|
2.5
|
%
|
|
2.1
|
%
|
|
(0.7
|
)%
|
|
3.5
|
%
|
|
3.1
|
|
%
|
|
N/A
|
Operating income -- TTM
|
|
|
$
|
2,055
|
|
|
$
|
2,049
|
|
|
$
|
1,647
|
|
|
$
|
1,808
|
|
|
$
|
|
2,012
|
|
|
|
(2
|
|
)%
|
Operating income -- TTM Y/Y growth (decline), excluding F/X
|
|
|
20
|
%
|
|
14
|
%
|
|
(12
|
)%
|
|
(10
|
)%
|
|
(1
|
|
)%
|
|
N/A
|
Operating margin -- TTM % of Consolidated net sales
|
|
|
2.6
|
%
|
|
2.5
|
%
|
|
1.9
|
%
|
|
2.0
|
%
|
|
2.2
|
|
%
|
|
N/A
|
______________________________
|
(6)
|
|
Represents cost of sales, fulfillment, marketing, technology and
content, and general and administrative operating expenses,
excluding stock-based compensation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Supplemental Financial Information and Business Metrics
|
(in millions, except inventory turnover, accounts payable days
and employee data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2014
|
|
Q2 2014
|
|
Q3 2014
|
|
Q4 2014
|
|
Q1 2015
|
|
Y/Y % Change
|
Supplemental
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental North America Segment Net Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
$
|
2,825
|
|
|
$
|
2,464
|
|
|
$
|
2,734
|
|
|
$
|
3,544
|
|
|
$
|
2,969
|
|
|
5
|
%
|
Media -- Y/Y growth, excluding F/X
|
|
|
13
|
%
|
|
14
|
%
|
|
5
|
%
|
|
1
|
%
|
|
5
|
%
|
|
N/A
|
Media -- TTM
|
|
|
$
|
11,121
|
|
|
$
|
11,411
|
|
|
$
|
11,536
|
|
|
$
|
11,567
|
|
|
$
|
11,711
|
|
|
5
|
%
|
Electronics and other general merchandise
|
|
|
$
|
7,829
|
|
|
$
|
8,366
|
|
|
$
|
8,793
|
|
|
$
|
13,529
|
|
|
$
|
10,250
|
|
|
31
|
%
|
Electronics and other general merchandise -- Y/Y growth, excluding
F/X
|
|
|
28
|
%
|
|
29
|
%
|
|
31
|
%
|
|
27
|
%
|
|
31
|
%
|
|
N/A
|
Electronics and other general merchandise -- TTM
|
|
|
$
|
31,686
|
|
|
$
|
33,575
|
|
|
$
|
35,636
|
|
|
$
|
38,517
|
|
|
$
|
40,938
|
|
|
29
|
%
|
Electronics and other general merchandise -- TTM % of North America
net sales
|
|
|
73
|
%
|
|
74
|
%
|
|
74
|
%
|
|
76
|
%
|
|
77
|
%
|
|
N/A
|
Other
|
|
|
$
|
154
|
|
|
$
|
164
|
|
|
$
|
172
|
|
|
$
|
260
|
|
|
$
|
187
|
|
|
22
|
%
|
Supplemental International Segment Net Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
$
|
2,642
|
|
|
$
|
2,380
|
|
|
$
|
2,510
|
|
|
$
|
3,406
|
|
|
$
|
2,320
|
|
|
(12
|
)%
|
Media -- Y/Y growth, excluding F/X
|
|
|
4
|
%
|
|
4
|
%
|
|
3
|
%
|
|
(1
|
)%
|
|
2
|
%
|
|
N/A
|
Media -- TTM
|
|
|
$
|
11,004
|
|
|
$
|
11,160
|
|
|
$
|
11,246
|
|
|
$
|
10,938
|
|
|
$
|
10,615
|
|
|
(4
|
)%
|
Electronics and other general merchandise
|
|
|
$
|
5,188
|
|
|
$
|
4,912
|
|
|
$
|
5,160
|
|
|
$
|
7,109
|
|
|
$
|
5,378
|
|
|
4
|
%
|
Electronics and other general merchandise -- Y/Y growth, excluding
F/X
|
|
|
26
|
%
|
|
20
|
%
|
|
19
|
%
|
|
19
|
%
|
|
21
|
%
|
|
N/A
|
Electronics and other general merchandise -- TTM
|
|
|
$
|
19,919
|
|
|
$
|
20,894
|
|
|
$
|
21,737
|
|
|
$
|
22,369
|
|
|
$
|
22,559
|
|
|
13
|
%
|
Electronics and other general merchandise -- TTM % of International
net sales
|
|
|
64
|
%
|
|
65
|
%
|
|
65
|
%
|
|
67
|
%
|
|
68
|
%
|
|
N/A
|
Other
|
|
|
$
|
53
|
|
|
$
|
49
|
|
|
$
|
41
|
|
|
$
|
60
|
|
|
$
|
47
|
|
|
(12
|
)%
|
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and marketable securities
|
|
|
$
|
8,666
|
|
|
$
|
7,986
|
|
|
$
|
6,883
|
|
|
$
|
17,416
|
|
|
$
|
13,781
|
|
|
59
|
%
|
Inventory, net -- ending
|
|
|
$
|
6,716
|
|
|
$
|
6,644
|
|
|
$
|
7,316
|
|
|
$
|
8,299
|
|
|
$
|
7,369
|
|
|
10
|
%
|
Inventory turnover, average -- TTM
|
|
|
9.1
|
|
|
9.1
|
|
|
8.9
|
|
|
8.6
|
|
|
8.8
|
|
|
(3
|
)%
|
Property and equipment, net
|
|
|
$
|
12,267
|
|
|
$
|
14,089
|
|
|
$
|
15,702
|
|
|
$
|
16,967
|
|
|
$
|
17,736
|
|
|
45
|
%
|
Accounts payable -- ending
|
|
|
$
|
10,590
|
|
|
$
|
10,457
|
|
|
$
|
11,811
|
|
|
$
|
16,459
|
|
|
$
|
11,917
|
|
|
13
|
%
|
Accounts payable days -- ending
|
|
|
68
|
|
|
71
|
|
|
74
|
|
|
73
|
|
|
70
|
|
|
3
|
%
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WW shipping revenue
|
|
|
$
|
849
|
|
|
$
|
889
|
|
|
$
|
1,048
|
|
|
$
|
1,701
|
|
|
$
|
1,299
|
|
|
53
|
%
|
WW shipping costs
|
|
|
$
|
1,829
|
|
|
$
|
1,812
|
|
|
$
|
2,020
|
|
|
$
|
3,049
|
|
|
$
|
2,309
|
|
|
26
|
%
|
WW net shipping costs
|
|
|
$
|
980
|
|
|
$
|
923
|
|
|
$
|
972
|
|
|
$
|
1,348
|
|
|
$
|
1,010
|
|
|
3
|
%
|
WW net shipping costs -- % of net sales (7)
|
|
|
5.2
|
%
|
|
5.0
|
%
|
|
5.0
|
%
|
|
4.8
|
%
|
|
4.8
|
%
|
|
N/A
|
Employees (full-time and part-time; excludes contractors & temporary
personnel)
|
|
|
124,600
|
|
|
132,600
|
|
|
149,500
|
|
|
154,100
|
|
|
165,000
|
|
|
32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________
(7) Includes North America and International segment net sales.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amazon.com, Inc. Certain Definitions
Customer Accounts
-
References to customers mean customer accounts, which are unique
e-mail addresses, established either when a customer places an order
or when a customer orders from other sellers on our websites. Customer
accounts exclude certain customers, including customers associated
with certain of our acquisitions, Amazon Payments customers, AWS
customers, and the customers of select companies with whom we have a
technology alliance or marketing and promotional relationship.
Customers are considered active when they have placed an order during
the preceding twelve-month period.
Seller Accounts
-
References to sellers means seller accounts, which are established
when a seller receives an order from a customer account. Sellers are
considered active when they have received an order from a customer
during the preceding twelve-month period.
AWS Customers
-
References to AWS customers mean unique AWS customer accounts, which
are unique e-mail addresses that are eligible to use AWS services.
This includes AWS accounts in the AWS free tier. Multiple users
accessing AWS services via one account are counted as a single
account. Customers are considered active when they have had AWS usage
activity during the preceding one-month period.
Units
-
References to units mean physical and digital units sold (net of
returns and cancellations) by us and sellers at Amazon domains
worldwide - for example www.amazon.com, www.amazon.co.uk,
www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca,
www.amazon.cn, www.amazon.it, www.amazon.es, www.amazon.com.br,
www.amazon.in, www.amazon.com.mx, www.amazon.com.au, www.amazon.nl,
www.diapers.com, www.shopbop.com and www.zappos.com - as well as
Amazon-owned items sold through non-Amazon domains. Units sold are
paid units and do not include units associated with AWS, certain
acquisitions, rental businesses, or advertising businesses, or Amazon
gift cards.
AMAZON.COM, INC. Supplemental Segment Financial
Information
Effective Q1 2015, Amazon.com, Inc. has three segments: North America,
International, and AWS. These segments reflect changes in the way
Amazon.com, Inc. evaluates its business performance and manages its
operations. Historical results for 2014 and 2013 for the North America,
International, and AWS segments are presented below.
The North America segment consists primarily of amounts earned from
retail sales of consumer products (including from sellers) and
subscriptions through North America-focused websites such as
www.amazon.com, www.amazon.ca, and www.amazon.com.mx. This segment
includes export sales from these websites.
The International segment consists primarily of amounts earned from
retail sales of consumer products (including from sellers) and
subscriptions through internationally-focused websites. This segment
includes export sales from these internationally-focused websites
(including export sales from these sites to customers in the U.S. and
Canada), but excludes export sales from our North American websites.
The AWS segment consists of amounts earned from sales of compute,
storage, database, and other AWS service offerings for start-ups,
enterprises, government agencies, and academic institutions.
We allocate to segment results the operating expenses "Fulfillment,"
"Marketing," "Technology and content," and "General and administrative"
based on usage, which is generally reflected in the segment in which the
costs are incurred. In conjunction with creating a separate reportable
segment for AWS, we have made other allocation changes among the North
America and International segments to reflect the relative contribution
provided to both segments. The majority of technology infrastructure
costs are allocated to the AWS segment based on usage. The majority of
the remaining non-infrastructure technology costs are incurred in the
U.S. and are allocated to our North America segment. We exclude from our
allocations the portions of these operating expense lines attributable
to stock-based compensation. We do not allocate the line item "Other
operating expense (income), net" to our segment operating results. There
are no internal revenue transactions between our reportable segments.
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Supplemental Segment Financial Information
|
|
Two years of historical financial information on reportable
segments and reconciliation to consolidated net income (loss)
using the new segment presentation are as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31, 2014
|
|
December 31, 2014
|
|
September 30, 2014
|
|
June 30, 2014
|
|
March 31, 2014
|
|
December 31, 2013
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
50,834
|
|
|
$
|
17,333
|
|
|
$
|
11,699
|
|
|
$
|
10,994
|
|
|
$
|
10,808
|
|
|
$
|
41,410
|
|
Segment operating expenses (1)
|
|
|
49,542
|
|
|
16,600
|
|
|
11,759
|
|
|
10,665
|
|
|
10,518
|
|
|
40,244
|
|
Segment operating income (loss)
|
|
|
$
|
1,292
|
|
|
$
|
733
|
|
|
$
|
(60
|
)
|
|
$
|
329
|
|
|
$
|
290
|
|
|
$
|
1,166
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
33,510
|
|
|
$
|
10,575
|
|
|
$
|
7,711
|
|
|
$
|
7,341
|
|
|
$
|
7,883
|
|
|
$
|
29,934
|
|
Segment operating expenses (1)
|
|
|
33,654
|
|
|
10,510
|
|
|
7,885
|
|
|
7,343
|
|
|
7,916
|
|
|
29,780
|
|
Segment operating income (loss)
|
|
|
$
|
(144
|
)
|
|
$
|
65
|
|
|
$
|
(174
|
)
|
|
$
|
(2
|
)
|
|
$
|
(33
|
)
|
|
$
|
154
|
|
AWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
4,644
|
|
|
$
|
1,420
|
|
|
$
|
1,169
|
|
|
$
|
1,005
|
|
|
$
|
1,050
|
|
|
$
|
3,108
|
|
Segment operating expenses (1)
|
|
|
3,984
|
|
|
1,180
|
|
|
1,071
|
|
|
928
|
|
|
805
|
|
|
2,435
|
|
Segment operating income
|
|
|
$
|
660
|
|
|
$
|
240
|
|
|
$
|
98
|
|
|
$
|
77
|
|
|
$
|
245
|
|
|
$
|
673
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
88,988
|
|
|
$
|
29,328
|
|
|
$
|
20,579
|
|
|
$
|
19,340
|
|
|
$
|
19,741
|
|
|
$
|
74,452
|
|
Segment operating expenses (1)
|
|
|
87,180
|
|
|
28,290
|
|
|
20,715
|
|
|
18,936
|
|
|
19,239
|
|
|
72,459
|
|
Segment operating income (loss)
|
|
|
1,808
|
|
|
1,038
|
|
|
(136
|
)
|
|
404
|
|
|
502
|
|
|
1,993
|
|
Stock-based compensation
|
|
|
(1,497
|
)
|
|
(408
|
)
|
|
(377
|
)
|
|
(391
|
)
|
|
(321
|
)
|
|
(1,134
|
)
|
Other operating income (expense), net
|
|
|
(133
|
)
|
|
(39
|
)
|
|
(31
|
)
|
|
(28
|
)
|
|
(35
|
)
|
|
(114
|
)
|
Income (loss) from operations
|
|
|
178
|
|
|
591
|
|
|
(544
|
)
|
|
(15
|
)
|
|
146
|
|
|
745
|
|
Total non-operating income (expense)
|
|
|
(289
|
)
|
|
(162
|
)
|
|
(90
|
)
|
|
(12
|
)
|
|
(26
|
)
|
|
(239
|
)
|
Benefit (provision) for income taxes
|
|
|
(167
|
)
|
|
(205
|
)
|
|
205
|
|
|
(94
|
)
|
|
(73
|
)
|
|
(161
|
)
|
Equity-method investment activity, net of tax
|
|
|
37
|
|
|
(10
|
)
|
|
(8
|
)
|
|
(5
|
)
|
|
61
|
|
|
(71
|
)
|
Net income (loss)
|
|
|
$
|
(241
|
)
|
|
$
|
214
|
|
|
$
|
(437
|
)
|
|
$
|
(126
|
)
|
|
$
|
108
|
|
|
$
|
274
|
|
Segment Highlights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y net sales growth:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
23
|
%
|
|
21
|
%
|
|
23
|
%
|
|
25
|
%
|
|
23
|
%
|
|
26
|
%
|
International
|
|
|
12
|
|
|
3
|
|
|
14
|
|
|
18
|
|
|
18
|
|
|
14
|
|
AWS
|
|
|
49
|
|
|
47
|
|
|
43
|
|
|
43
|
|
|
69
|
|
|
69
|
|
Consolidated
|
|
|
20
|
|
|
15
|
|
|
20
|
|
|
23
|
|
|
23
|
|
|
22
|
|
Net sales mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
57
|
%
|
|
59
|
%
|
|
57
|
%
|
|
57
|
%
|
|
55
|
%
|
|
56
|
%
|
International
|
|
|
38
|
|
|
36
|
|
|
37
|
|
|
38
|
|
|
40
|
|
|
40
|
|
AWS
|
|
|
5
|
|
|
5
|
|
|
6
|
|
|
5
|
|
|
5
|
|
|
4
|
|
Consolidated
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_________________
(1) Excludes stock-based compensation and "Other operating expense
(income), net" which are not allocated to segments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Supplemental Segment Financial Information
|
|
Segment Assets
|
|
Total segment assets exclude corporate assets, such as cash and
cash equivalents, marketable securities, other long-term
investments, corporate facilities, goodwill and other acquired
intangible assets, capitalized internal-use software and website
development costs, and tax assets. Technology infrastructure
assets are allocated among the segments based on usage, with the
majority allocated to the AWS segment. Total segment assets
reconciled to consolidated amounts are as follows (in millions):
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
North America (1)
|
|
|
$
|
13,257
|
|
|
|
$
|
9,991
|
International (1)
|
|
|
6,747
|
|
|
|
6,199
|
AWS (2)
|
|
|
6,981
|
|
|
|
3,840
|
Corporate
|
|
|
27,520
|
|
|
|
20,129
|
Consolidated
|
|
|
$
|
54,505
|
|
|
|
$
|
40,159
|
|
|
|
|
_____________________________
|
(1) North America and International segment assets primarily
consist of inventory, accounts receivable, and property and
equipment.
|
(2) AWS segment assets primarily consist of property and equipment
and accounts receivable.
|
|
|
|
|
|
|
|
|
Property and Equipment, Net
|
|
Property and equipment, net by segment is as follows (in millions):
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
North America
|
|
|
$
|
5,373
|
|
|
|
$
|
3,477
|
International
|
|
|
2,000
|
|
|
|
1,549
|
AWS
|
|
|
6,043
|
|
|
|
3,253
|
Corporate
|
|
|
3,551
|
|
|
|
2,670
|
Consolidated
|
|
|
$
|
16,967
|
|
|
|
$
|
10,949
|
|
|
|
|
Property and Equipment Additions
|
|
Total property and equipment additions by segment are as follows (in
millions):
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
North America (1)
|
|
|
$
|
2,833
|
|
|
|
$
|
2,326
|
International (1)
|
|
|
767
|
|
|
|
851
|
AWS (2)
|
|
|
4,295
|
|
|
|
2,215
|
Corporate
|
|
|
1,586
|
|
|
|
981
|
Consolidated
|
|
|
$
|
9,481
|
|
|
|
$
|
6,373
|
___
|
_
|
____________
|
(1)
|
|
Includes property and equipment added under capital leases of $887
million and $555 million in 2014 and 2013, and under other financing
arrangements of $599 million and $715 million in 2014 and 2013.
|
(2)
|
|
Includes property and equipment added under capital leases of $3.0
billion and $1.3 billion in 2014 and 2013, and under other financing
arrangements of $62 million and $67 million in 2014 and 2013.
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Supplemental Segment Financial Information
|
|
Depreciation Expense
|
|
Depreciation expense, including amortization of capitalized
internal-use software and website development costs and other
corporate property and equipment depreciation expense, are
allocated to all segments based on usage. Total depreciation
expense, by segment, is as follows (in millions):
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2014
|
|
|
2013
|
North America
|
|
|
$
|
1,203
|
|
|
|
$
|
914
|
International
|
|
|
740
|
|
|
|
583
|
AWS
|
|
|
1,673
|
|
|
|
963
|
Consolidated
|
|
|
$
|
3,616
|
|
|
|
$
|
2,460
|
|
|
|
|
|
|
|
|
|
|
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