[October 26, 2017] |
|
Amazon.com Announces Third Quarter Sales up 34% to $43.7 Billion
Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for
its third quarter ended September 30, 2017.
Operating cash flow increased 14% to $17.1 billion for the trailing
twelve months, compared with $15.0 billion for the trailing twelve
months ended September 30, 2016. Free cash flow decreased to $8.1
billion for the trailing twelve months, compared with $9.0 billion for
the trailing twelve months ended September 30, 2016. Free cash flow less
lease principal repayments decreased to $3.5 billion for the trailing
twelve months, compared with $5.3 billion for the trailing twelve months
ended September 30, 2016. Free cash flow less finance lease principal
repayments and assets acquired under capital leases decreased to an
outflow of $1.0 billion for the trailing twelve months, compared with an
inflow of $3.8 billion for the trailing twelve months ended
September 30, 2016.
Common shares outstanding plus shares underlying stock-based awards
totaled 503 million on September 30, 2017, compared with 496 million one
year ago.
Net sales increased 34% to $43.7 billion in the third quarter, compared
with $32.7 billion in third quarter 2016. Net sales includes $1.3
billion from Whole Foods Market, which Amazon acquired on August 28,
2017. Excluding Whole Foods Market and the $124 million favorable impact
from year-over-year changes in foreign exchange rates throughout the
quarter, net sales increased 29% compared with third quarter 2016.
Operating income decreased 40% to $347 million in the third quarter,
compared with operating income of $575 million in third quarter 2016.
Operating income includes income of $21 million from Whole Foods Market.
Net income was $256 million in the third quarter, or $0.52 per diluted
share, compared with net income of $252 million, or $0.52 per diluted
share, in third quarter 2016.
"In the last month alone, we've launched five new Alexa-enabled devices,
introduced Alexa in India, announced integration with BMW, surpassed
25,000 skills, integrated Alexa with Sonos speakers, taught Alexa to
distinguish between two voices, and more. Because Alexa's brain is in
the AWS cloud, her new abilities are available to all Echo customers,
not just those who buy a new device," said Jeff Bezos, Amazon founder
and CEO. "And it's working - customers have purchased tens of millions
of Alexa-enabled devices, given Echo devices over 100,000 5-star
reviews, and active customers are up more than 5x since the same time
last year. With thousands of developers and hardware makers building new
Alexa skills and devices, the Alexa experience will continue to get even
better."
Highlights
-
Amazon acquired Whole Foods Market on August 28, 2017. The two
companies together will pursue the vision of making high-quality,
natural, and organic food affordable for everyone. Upon closing, Whole
Foods Market began offering lower prices on a selection of
best-selling grocery staples across its stores, with more to come.
-
Amazon introduced three new Echo devices: the all-new Echo ($99.99),
featuring a new design, improved sound, a lower price, and a choice of
colors to personalize your device; Echo Plus ($149.99) with a built-in
smart home hub so customers can easily set up and control their smart
home devices; and Echo Spot ($129.99), a compact Echo with a screen so
you can see the weather, get the news with a video flash briefing,
view lyrics with Amazon Music, watch a camera monitor, browse and
listen to Audible, and more.
-
Amazon introduced the all-new Fire TV with 4K Ultra HD, High Dynamic
Range, and Alexa Voice Remote for $69.99.
-
Amazon launched Alexa far-field voice control on Fire TV. Customers
can now pair an Echo device with a Fire TV and simply ask Alexa to
play a favorite show, launch an app, or control playback - all without
having to pick up the remote.
-
Amazon announced that you can now call anyone with Alexa with a new
calling feature that offers free outbound calling to any number from
Echo devices, and the all-new Echo Connect which brings the
convenience of hands-free inbound and outbound calling to your home
phone.
-
The Alexa Skills store now offers customers more than 25,000 skills.
Customers can keep up with their eHarmony accounts, play NFL Trivia
with Marshawn Lynch, enjoy kids content from Nickelodeon and PBS, and
more.
-
Tens of thousands of developers are using the Alexa Voice Service to
integrate Alexa into their products, including BMW and MINI vehicles,
the Sonos One smart speaker, Harman Kardon's Allure smart speaker, and
Motorola's X4 smartphone.
-
Amazon and Microsoft announced that soon, Alexa will be able to talk
to Cortana, and Cortana will be able to talk to Alexa. Alexa customers
will be able to access Cortana's unique features like accessing work
calendars, booking a meeting, reminding you to pick up flowers on your
way home, or reading your work email - all using just your voice.
Similarly, Cortana customers can ask Alexa to control their smart home
devices, shop on Amazon.com, interact with many of the skills built by
third-party developers, and much more.
-
Amazon announced that Alexa and Echo are coming to India and Japan,
with an all-new Alexa experience designed from the ground up for
Indian and Japanese customers. Developers in India, Japan, and around
the world will be able to create new experiences for Alexa users with
the Alexa Skills Kit and Alexa Voice Service.
-
Amazon introduced multi-room music, a new Alexa feature that lets you
control and synchronize your music across multiple Echo devices in
your home.
-
The Amazon Music app now features Alexa on iOS and Android in the
U.S., U.K., Germany, and Austria, combining the power of natural
language voice controls with a visual app experience.
-
Amazon Music Unlimited launched for customers in France, Italy, and
Spain, offering a full catalog streaming service with more than 50
million songs for just €9.99 per month, with Prime members receiving
exclusive pricing on individual and family plans.
-
Amazon introduced Amazon Key, a new service exclusively for Prime
members that enables in-home delivery and secure home access for
guests and service appointments. Amazon Key works with Amazon Cloud
Cam, the company's first home security offering. Cloud Cam is an
intelligent indoor security camera featuring 1080p full HD resolution,
night vision, two-way audio, a wide viewing angle, and clips from the
last 24 hours for $119.99.
-
Amazon introduced the all-new Fire HD 10, the next generation of
Amazon's largest tablet, with a 10.1-inch widescreen 1080p full HD
display, 30% faster performance, more storage, longer battery life,
and the option to use Alexa hands-free functionality for $149.99.
-
Amazon announced the all-new Kindle Oasis, the latest e-reader with a
larger 7-inch, 300 ppi high-resolution display and a light ergonomic
design with customizable settings so customers can read comfortably
for hours. The Kindle Oasis is waterproof so you can read in more
places, and with built-in Audible access, subscribers can easily
switch between reading and listening without changing devices, all for
$249.99.
-
NFL Thursday Night Football on Amazon Prime Video saw a total of 7.1
million views in the first four games. Prime members in 187 countries
and territories have streamed games on living room devices, including
smart TVs and Fire TVs, as well as the Prime Video mobile app and the
web, with each viewer watching an average of 51 minutes.
-
Amazon Studios closed deals with The Walking Dead creator
Robert Kirkman and Gilmore Girls creators Amy Sherman-Palladino
and Daniel Palladino, and greenlit a comedy series starring Fred
Armisen and Maya Rudolph, as well as the drama series Tong Wars
from Paul Attanasio and Wong Kar-wai. Amazon Studios also announced
development on Underground Railroad with Barry Jenkins; The
Boys with Seth Rogen and Evan Goldberg; Snow Crash from the
novel by Neal Stephenson; Lazarus, based on a comic book by
Greg Rucka; and Ringworld, based on Larry Niven's sci-fi book
series.
-
Amazon introduced a convenient way for teens to shop or stream content
on the Amazon App with their own login while still keeping their
parents informed. Parents can choose to approve all orders or set
pre-approved spending limits per purchase, offering teens a customized
level of autonomy that can change and grow as they do.
-
Amazon Business expanded to Japan and India, and now serves businesses
of all sizes in five countries across the globe.
-
Amazon Business launched Business Prime Shipping, offering unlimited
free two-day shipping for multi-user business customers in the U.S.
and Germany.
-
Amazon expects to create more than 120,000 seasonal jobs in its U.S.
network of fulfillment centers, sortation centers, and customer
service sites. Last year, Amazon transitioned thousands of holiday
positions to regular, full-time roles after the holidays, and plans to
continue that trend this year.
-
Amazon announced its search for Amazon HQ2, its second headquarters
city in North America, where it expects to invest $5 billion and
create as many as 50,000 jobs. Amazon received 238 proposals from
across North America.
-
Amazon expanded its support for homeless women, children, and families
with a $1 million donation match offer for St. Mary's Center - an
organization in Boston, MA, that provides emergency shelter and
critical services for families in need. This follows similar matches
this year for Friendship Place in Washington, D.C. and Mary's Place in
Seattle, WA. Amazon is also building a permanent home for Mary's Place
within the newest building on its Seattle campus.
-
Amazon hosted Take Your Kids to Work Day, Take Your Parents to Work
Day, and Take Your Grandparents to Work Day, welcoming over 14,000
family members into its offices.
-
Amazon Books opened bookstores in Bellevue, WA, San Jose, CA, Los
Angeles, CA, and a second location in New York, NY. Amazon now has 12
bookstores across the U.S. with more stores planned, including Walnut
Creek, CA, Washington, D.C., and Austin, TX. Amazon Books integrates
the benefits of offline and online shopping to help customers discover
books and devices.
-
Amazon launched Amazon Wind Farm Texas, its largest windfarm yet,
which generates more than 1,000,000 megawatt hours of clean energy
annually from over 100 turbines. Amazon now has 18 solar and wind
projects live across the U.S. with more than 35 on the way. Together,
Amazon's renewable energy projects now produce enough clean energy to
power over 330,000 homes annually.
-
Amazon Web Services (AWS) announced that the following customers are
going all-in on AWS: Toyota Racing Development, one of the most
accomplished and acclaimed engineering companies in motorsports; and
Randstad, a leading global HR services company. GRAIL, a life sciences
company whose mission is early cancer detection, Hulu, and FICO all
selected AWS as their cloud provider. AWS was also named the preferred
cloud provider for General Electric (GE) as it undergoes one of the
largest and most important digital transformations in its history.
-
AWS and Microsoft announced Gluon, a new open source deep learning
library that allows developers of all skill levels to prototype,
build, train, and deploy sophisticated machine learning models for the
cloud, devices at the edge, and mobile apps.
-
AWS launched per-second billing in all regions for Linux-based EC2
instances, Elastic Graphical Processing Units (GPU), Elastic Block
Store (EBS) Volumes, AWS Batch, and Elastic Map Reduce (EMR).
Customers using these services will now be billed in one-second
(versus one-hour) increments.
-
AWS introduced the AWS Migration Hub, a free service that provides a
single location for customers to track the status of migrations across
their application portfolio. AWS Migration Hub helps customers reduce
the overall time and effort spent on migration projects while also
helping to identify and troubleshoot issues along the way.
-
AWS introduced the general availability of Lambda@Edge. This new AWS
Lambda feature can be used to run Node.js functions across AWS
locations globally without provisioning or managing servers, allowing
customers to deliver richer, more personalized content with low
latency to their end users.
-
AWS and VMware announced the initial availability of VMware Cloud on
AWS, which brings VMware's software-defined data center (SDDC) to the
AWS Cloud, and allows customers to run applications across
operationally consistent VMware vSphere-based private, public, and
hybrid cloud environments, with optimized access to AWS services.
VMware Cloud on AWS is delivered, sold, and supported by VMware as an
on-demand, elastically-scalable cloud service that removes barriers to
cloud migration and cloud portability, increases IT efficiency, and
opens up new opportunities for customers to leverage a hybrid
cloud environment. Early customers include Brink's, Cerner,
Elemica, MIT, Moody's, the State of Louisiana, and Sysco.
-
AWS announced that it will open a new infrastructure region in the
Middle East in 2019. Currently, AWS provides 44 Availability Zones
across 16 infrastructure regions worldwide, with another 14
Availability Zones across five AWS Regions in China, France, Hong
Kong, Sweden, and a second GovCloud Region in the U.S. expected to
come online by the end of 2018.
-
AWS announced the general availability of AWS Glue, a fully managed
extract, transform, and load (ETL) service that makes it easy for
customers to prepare and load their data into Amazon Simple Storage
Service (Amazon S3), Amazon Redshift, Amazon Relational Database
Service (Amazon RDS), and databases running on Amazon Elastic Compute
Cloud (Amazon EC2) for query and analysis. Customers like NewsCorp, 21st
Century Fox, myTomorrows, the OLX Group, and Herman Miller (via APN
Partner OST) are using AWS Glue to make data available for analysis in
minutes, and since AWS Glue is serverless, they only pay for the
compute resources they consume while executing data preparation and
loading jobs.
-
AWS launched Amazon Macie, a new security service that uses machine
learning to help customers prevent data loss by automatically
discovering, classifying, and protecting sensitive data in AWS.
Customers such as Autodesk, Edmunds, and Netflix are using Amazon
Macie to recognize sensitive data such as personally identifiable
information (PII) or intellectual property, and provide dashboards and
alerts that give visibility into how this data is being accessed or
moved. Amazon Macie continuously monitors data access activity for
anomalies, and generates detailed alerts when it detects risk of
unauthorized access or inadvertent data leaks.
-
AWS announced general availability of Amazon EC2 Elastic GPUs, making
it easy to attach low-cost graphics acceleration to a wide range of
EC2 instances over the network for a fraction of the cost of
standalone graphics instances.
-
AWS GovCloud (US) received an Impact Level 5 (IL5) Department of
Defense Provisional Authorization (PA) to Support Mission-Critical
Systems. This means that DoD customers may now run workloads for
highly-sensitive Controlled Unclassified Information as well as
unclassified National Security Systems on AWS in the GovCloud Region.
Financial Guidance
The following forward-looking statements reflect Amazon.com's
expectations as of October 26, 2017, 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 customer
spending, world events, the rate of growth of the Internet, online
commerce, and cloud services, and the various factors detailed below.
Fourth Quarter 2017 Guidance
-
Net sales are expected to be between $56.0 billion and $60.5 billion,
or to grow between 28% and 38% compared with fourth quarter 2016. This
guidance includes approximately 1,000 basis points of impact to our
year-over-year growth rate from Whole Foods Market. This guidance also
anticipates a favorable impact of approximately $1.2 billion or 270
basis points from foreign exchange rates.
-
Operating income is expected to be between $300 million and $1.65
billion, compared with $1.3 billion in fourth quarter 2016.
-
This guidance assumes, among other things, that no additional business
acquisitions, investments, restructurings, or legal settlements are
concluded.
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 and services sold to customers, the mix
of net sales derived from products as compared with services, the extent
to which we owe income or other 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, proposed and
completed 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 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 tablets, Fire TV, Amazon Echo, and Alexa
are some of the products and services pioneered by Amazon. For more
information, visit www.amazon.com/about and follow @AmazonNews.
|
AMAZON.COM, INC.
|
Consolidated Statements of Cash Flows
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
Twelve Months Ended September 30,
|
|
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
|
$
|
12,521
|
|
|
|
$
|
13,203
|
|
|
|
$
|
15,890
|
|
|
|
$
|
19,334
|
|
|
|
$
|
10,709
|
|
|
|
$
|
13,656
|
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
252
|
|
|
|
|
256
|
|
|
|
|
1,622
|
|
|
|
|
1,176
|
|
|
|
|
2,105
|
|
|
|
|
1,926
|
|
Adjustments to reconcile net income 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
|
|
|
|
|
2,084
|
|
|
|
|
2,912
|
|
|
|
|
5,819
|
|
|
|
|
7,980
|
|
|
|
|
7,572
|
|
|
|
|
10,277
|
|
Stock-based compensation
|
|
|
|
|
776
|
|
|
|
|
1,085
|
|
|
|
|
2,088
|
|
|
|
|
3,036
|
|
|
|
|
2,694
|
|
|
|
|
3,923
|
|
Other operating expense, net
|
|
|
|
|
31
|
|
|
|
|
43
|
|
|
|
|
128
|
|
|
|
|
146
|
|
|
|
|
163
|
|
|
|
|
177
|
|
Other expense (income), net
|
|
|
|
|
(23
|
)
|
|
|
|
(128
|
)
|
|
|
|
(41
|
)
|
|
|
|
(288
|
)
|
|
|
|
39
|
|
|
|
|
(267
|
)
|
Deferred income taxes
|
|
|
|
|
(81
|
)
|
|
|
|
(74
|
)
|
|
|
|
36
|
|
|
|
|
279
|
|
|
|
|
226
|
|
|
|
|
(2
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
|
|
|
(1,095
|
)
|
|
|
|
(1,593
|
)
|
|
|
|
(383
|
)
|
|
|
|
(1,328
|
)
|
|
|
|
(1,726
|
)
|
|
|
|
(2,371
|
)
|
Accounts receivable, net and other
|
|
|
|
|
(671
|
)
|
|
|
|
(1,758
|
)
|
|
|
|
(1,443
|
)
|
|
|
|
(2,005
|
)
|
|
|
|
(2,621
|
)
|
|
|
|
(3,929
|
)
|
Accounts payable
|
|
|
|
|
2,540
|
|
|
|
|
3,046
|
|
|
|
|
(2,252
|
)
|
|
|
|
(1,731
|
)
|
|
|
|
3,887
|
|
|
|
|
5,551
|
|
Accrued expenses and other
|
|
|
|
|
441
|
|
|
|
|
(122
|
)
|
|
|
|
(531
|
)
|
|
|
|
(1,778
|
)
|
|
|
|
1,306
|
|
|
|
|
476
|
|
Additions to unearned revenue
|
|
|
|
|
2,802
|
|
|
|
|
3,762
|
|
|
|
|
7,956
|
|
|
|
|
10,862
|
|
|
|
|
10,377
|
|
|
|
|
14,837
|
|
Amortization of previously unearned revenue
|
|
|
|
|
(2,397
|
)
|
|
|
|
(3,578
|
)
|
|
|
|
(6,715
|
)
|
|
|
|
(10,259
|
)
|
|
|
|
(9,018
|
)
|
|
|
|
(13,521
|
)
|
Net cash provided by (used in) operating activities (1)
|
|
|
|
|
4,659
|
|
|
|
|
3,851
|
|
|
|
|
6,284
|
|
|
|
|
6,090
|
|
|
|
|
15,004
|
|
|
|
|
17,077
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment, including internal-use software
and website development, net
|
|
|
|
|
(1,841
|
)
|
|
|
|
(2,659
|
)
|
|
|
|
(4,731
|
)
|
|
|
|
(7,022
|
)
|
|
|
|
(6,040
|
)
|
|
|
|
(9,027
|
)
|
Acquisitions, net of cash acquired, and other
|
|
|
|
|
(84
|
)
|
|
|
|
(13,213
|
)
|
|
|
|
(113
|
)
|
|
|
|
(13,891
|
)
|
|
|
|
(430
|
)
|
|
|
|
(13,893
|
)
|
Sales and maturities of marketable securities
|
|
|
|
|
1,431
|
|
|
|
|
2,221
|
|
|
|
|
3,500
|
|
|
|
|
6,424
|
|
|
|
|
4,635
|
|
|
|
|
7,656
|
|
Purchases of marketable securities
|
|
|
|
|
(2,076
|
)
|
|
|
|
(5,469
|
)
|
|
|
|
(4,358
|
)
|
|
|
|
(11,298
|
)
|
|
|
|
(5,717
|
)
|
|
|
|
(14,697
|
)
|
Net cash provided by (used in) investing activities
|
|
|
|
|
(2,570
|
)
|
|
|
|
(19,120
|
)
|
|
|
|
(5,702
|
)
|
|
|
|
(25,787
|
)
|
|
|
|
(7,552
|
)
|
|
|
|
(29,961
|
)
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt and other
|
|
|
|
|
8
|
|
|
|
|
16,080
|
|
|
|
|
83
|
|
|
|
|
16,170
|
|
|
|
|
176
|
|
|
|
|
16,707
|
|
Repayments of long-term debt and other
|
|
|
|
|
(26
|
)
|
|
|
|
(79
|
)
|
|
|
|
(271
|
)
|
|
|
|
(202
|
)
|
|
|
|
(1,212
|
)
|
|
|
|
(285
|
)
|
Principal repayments of capital lease obligations
|
|
|
|
|
(938
|
)
|
|
|
|
(1,267
|
)
|
|
|
|
(2,855
|
)
|
|
|
|
(3,327
|
)
|
|
|
|
(3,579
|
)
|
|
|
|
(4,331
|
)
|
Principal repayments of finance lease obligations
|
|
|
|
|
(44
|
)
|
|
|
|
(49
|
)
|
|
|
|
(105
|
)
|
|
|
|
(134
|
)
|
|
|
|
(131
|
)
|
|
|
|
(175
|
)
|
Net cash provided by (used in) financing activities (1)
|
|
|
|
|
(1,000
|
)
|
|
|
|
14,685
|
|
|
|
|
(3,148
|
)
|
|
|
|
12,507
|
|
|
|
|
(4,746
|
)
|
|
|
|
11,916
|
|
Foreign currency effect on cash and cash equivalents
|
|
|
|
|
46
|
|
|
|
|
148
|
|
|
|
|
332
|
|
|
|
|
623
|
|
|
|
|
241
|
|
|
|
|
79
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
|
1,135
|
|
|
|
|
(436
|
)
|
|
|
|
(2,234
|
)
|
|
|
|
(6,567
|
)
|
|
|
|
2,947
|
|
|
|
|
(889
|
)
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
|
|
$
|
13,656
|
|
|
|
$
|
12,767
|
|
|
|
$
|
13,656
|
|
|
|
$
|
12,767
|
|
|
|
$
|
13,656
|
|
|
|
$
|
12,767
|
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest on long-term debt
|
|
|
|
$
|
1
|
|
|
|
$
|
5
|
|
|
|
$
|
146
|
|
|
|
$
|
155
|
|
|
|
$
|
295
|
|
|
|
$
|
299
|
|
Cash paid for interest on capital and finance lease obligations
|
|
|
|
|
50
|
|
|
|
|
112
|
|
|
|
|
145
|
|
|
|
|
235
|
|
|
|
|
188
|
|
|
|
|
296
|
|
Cash paid for income taxes, net of refunds
|
|
|
|
|
91
|
|
|
|
|
172
|
|
|
|
|
317
|
|
|
|
|
865
|
|
|
|
|
390
|
|
|
|
|
960
|
|
Property and equipment acquired under capital leases
|
|
|
|
|
1,369
|
|
|
|
|
2,256
|
|
|
|
|
3,666
|
|
|
|
|
6,867
|
|
|
|
|
4,998
|
|
|
|
|
8,905
|
|
Property and equipment acquired under build-to-suit leases
|
|
|
|
|
211
|
|
|
|
|
750
|
|
|
|
|
793
|
|
|
|
|
2,698
|
|
|
|
|
956
|
|
|
|
|
3,114
|
|
______________________________
|
(1)
|
|
|
|
As a result of accounting guidance adopted in Q1 2017, we
retrospectively adjusted our consolidated statements of cash flows
to reclassify excess tax benefits of $173 million for the
three-months ended September 30, 2016, $493 million for the
nine-months ended September 30, 2016, and $401 million for the
twelve-months ended September 30, 2016 from financing activities
to operating activities.
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Consolidated Statements of Operations
|
(in millions, except per share data)
|
(unaudited)
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net product sales
|
|
|
|
$
|
22,339
|
|
|
|
$
|
28,768
|
|
|
|
$
|
64,036
|
|
|
|
$
|
77,248
|
|
Net service sales
|
|
|
|
|
10,375
|
|
|
|
|
14,976
|
|
|
|
|
28,210
|
|
|
|
|
40,165
|
|
Total net sales
|
|
|
|
|
32,714
|
|
|
|
|
43,744
|
|
|
|
|
92,246
|
|
|
|
|
117,413
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
21,260
|
|
|
|
|
27,549
|
|
|
|
|
59,306
|
|
|
|
|
73,439
|
|
Fulfillment
|
|
|
|
|
4,335
|
|
|
|
|
6,420
|
|
|
|
|
11,900
|
|
|
|
|
16,275
|
|
Marketing
|
|
|
|
|
1,738
|
|
|
|
|
2,479
|
|
|
|
|
4,720
|
|
|
|
|
6,629
|
|
Technology and content
|
|
|
|
|
4,135
|
|
|
|
|
5,944
|
|
|
|
|
11,541
|
|
|
|
|
16,306
|
|
General and administrative
|
|
|
|
|
639
|
|
|
|
|
960
|
|
|
|
|
1,715
|
|
|
|
|
2,630
|
|
Other operating expense, net
|
|
|
|
|
32
|
|
|
|
|
45
|
|
|
|
|
133
|
|
|
|
|
155
|
|
Total operating expenses
|
|
|
|
|
32,139
|
|
|
|
|
43,397
|
|
|
|
|
89,315
|
|
|
|
|
115,434
|
|
Operating income
|
|
|
|
|
575
|
|
|
|
|
347
|
|
|
|
|
2,931
|
|
|
|
|
1,979
|
|
Interest income
|
|
|
|
|
26
|
|
|
|
|
54
|
|
|
|
|
71
|
|
|
|
|
137
|
|
Interest expense
|
|
|
|
|
(118
|
)
|
|
|
|
(228
|
)
|
|
|
|
(351
|
)
|
|
|
|
(510
|
)
|
Other income (expense), net
|
|
|
|
|
8
|
|
|
|
|
143
|
|
|
|
|
75
|
|
|
|
|
329
|
|
Total non-operating income (expense)
|
|
|
|
|
(84
|
)
|
|
|
|
(31
|
)
|
|
|
|
(205
|
)
|
|
|
|
(44
|
)
|
Income before income taxes
|
|
|
|
|
491
|
|
|
|
|
316
|
|
|
|
|
2,726
|
|
|
|
|
1,935
|
|
Provision for income taxes
|
|
|
|
|
(229
|
)
|
|
|
|
(58
|
)
|
|
|
|
(1,012
|
)
|
|
|
|
(755
|
)
|
Equity-method investment activity, net of tax
|
|
|
|
|
(10
|
)
|
|
|
|
(2
|
)
|
|
|
|
(92
|
)
|
|
|
|
(4
|
)
|
Net income
|
|
|
|
$
|
252
|
|
|
|
$
|
256
|
|
|
|
$
|
1,622
|
|
|
|
$
|
1,176
|
|
Basic earnings per share
|
|
|
|
$
|
0.53
|
|
|
|
$
|
0.53
|
|
|
|
$
|
3.43
|
|
|
|
$
|
2.46
|
|
Diluted earnings per share
|
|
|
|
$
|
0.52
|
|
|
|
$
|
0.52
|
|
|
|
$
|
3.36
|
|
|
|
$
|
2.39
|
|
Weighted-average shares used in computation of earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
474
|
|
|
|
|
481
|
|
|
|
|
473
|
|
|
|
|
479
|
|
Diluted
|
|
|
|
|
485
|
|
|
|
|
494
|
|
|
|
|
483
|
|
|
|
|
492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Consolidated Statements of Comprehensive Income
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
252
|
|
|
$
|
256
|
|
|
|
$
|
1,622
|
|
|
$
|
1,176
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments, net of tax of $6, $10,
$18, and $(5)
|
|
|
|
|
19
|
|
|
|
104
|
|
|
|
|
133
|
|
|
|
486
|
|
Net change in unrealized gains (losses) on available-for-sale
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses), net of tax of $(15), $(1), $(32), and $1
|
|
|
|
|
29
|
|
|
|
(2
|
)
|
|
|
|
65
|
|
|
|
(10
|
)
|
Reclassification adjustment for losses (gains) included in "Other
income (expense), net," net of tax of $(1), $0, $(2), and $0
|
|
|
|
|
2
|
|
|
|
3
|
|
|
|
|
4
|
|
|
|
8
|
|
Net unrealized gains (losses) on available-for-sale securities
|
|
|
|
|
31
|
|
|
|
1
|
|
|
|
|
69
|
|
|
|
(2
|
)
|
Total other comprehensive income (loss)
|
|
|
|
|
50
|
|
|
|
105
|
|
|
|
|
202
|
|
|
|
484
|
|
Comprehensive income
|
|
|
|
$
|
302
|
|
|
$
|
361
|
|
|
|
$
|
1,824
|
|
|
$
|
1,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Segment Information
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
18,874
|
|
|
|
$
|
25,446
|
|
|
|
$
|
53,544
|
|
|
|
$
|
68,808
|
|
Operating expenses
|
|
|
|
|
18,619
|
|
|
|
|
25,334
|
|
|
|
|
51,999
|
|
|
|
|
67,664
|
|
Operating income
|
|
|
|
$
|
255
|
|
|
|
$
|
112
|
|
|
|
$
|
1,545
|
|
|
|
$
|
1,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
10,609
|
|
|
|
$
|
13,714
|
|
|
|
$
|
30,019
|
|
|
|
$
|
36,259
|
|
Operating expenses
|
|
|
|
|
11,150
|
|
|
|
|
14,650
|
|
|
|
|
30,815
|
|
|
|
|
38,401
|
|
Operating income (loss)
|
|
|
|
$
|
(541
|
)
|
|
|
$
|
(936
|
)
|
|
|
$
|
(796
|
)
|
|
|
$
|
(2,142
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
3,231
|
|
|
|
$
|
4,584
|
|
|
|
$
|
8,683
|
|
|
|
$
|
12,346
|
|
Operating expenses
|
|
|
|
|
2,370
|
|
|
|
|
3,413
|
|
|
|
|
6,501
|
|
|
|
|
9,369
|
|
Operating income
|
|
|
|
$
|
861
|
|
|
|
$
|
1,171
|
|
|
|
$
|
2,182
|
|
|
|
$
|
2,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
32,714
|
|
|
|
$
|
43,744
|
|
|
|
$
|
92,246
|
|
|
|
$
|
117,413
|
|
Operating expenses
|
|
|
|
|
32,139
|
|
|
|
|
43,397
|
|
|
|
|
89,315
|
|
|
|
|
115,434
|
|
Operating income
|
|
|
|
|
575
|
|
|
|
|
347
|
|
|
|
|
2,931
|
|
|
|
|
1,979
|
|
Total non-operating income (expense)
|
|
|
|
|
(84
|
)
|
|
|
|
(31
|
)
|
|
|
|
(205
|
)
|
|
|
|
(44
|
)
|
Provision for income taxes
|
|
|
|
|
(229
|
)
|
|
|
|
(58
|
)
|
|
|
|
(1,012
|
)
|
|
|
|
(755
|
)
|
Equity-method investment activity, net of tax
|
|
|
|
|
(10
|
)
|
|
|
|
(2
|
)
|
|
|
|
(92
|
)
|
|
|
|
(4
|
)
|
Net income
|
|
|
|
$
|
252
|
|
|
|
$
|
256
|
|
|
|
$
|
1,622
|
|
|
|
$
|
1,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Highlights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y net sales growth:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
26
|
%
|
|
|
|
35
|
%
|
|
|
|
27
|
%
|
|
|
|
29
|
%
|
International
|
|
|
|
|
28
|
|
|
|
|
29
|
|
|
|
|
27
|
|
|
|
|
21
|
|
AWS
|
|
|
|
|
55
|
|
|
|
|
42
|
|
|
|
|
59
|
|
|
|
|
42
|
|
Consolidated
|
|
|
|
|
29
|
|
|
|
|
34
|
|
|
|
|
29
|
|
|
|
|
27
|
|
Net sales mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
58
|
%
|
|
|
|
58
|
%
|
|
|
|
58
|
%
|
|
|
|
59
|
%
|
International
|
|
|
|
|
32
|
|
|
|
|
31
|
|
|
|
|
33
|
|
|
|
|
31
|
|
AWS
|
|
|
|
|
10
|
|
|
|
|
11
|
|
|
|
|
9
|
|
|
|
|
10
|
|
Consolidated
|
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Consolidated Balance Sheets
|
(in millions, except per share data)
|
|
|
|
|
|
December 31, 2016
|
|
|
September 30, 2017
|
|
|
|
|
|
|
|
(unaudited)
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
19,334
|
|
|
|
$
|
12,767
|
|
Marketable securities
|
|
|
|
|
6,647
|
|
|
|
|
11,543
|
|
Inventories
|
|
|
|
|
11,461
|
|
|
|
|
13,711
|
|
Accounts receivable, net and other
|
|
|
|
|
8,339
|
|
|
|
|
10,557
|
|
Total current assets
|
|
|
|
|
45,781
|
|
|
|
|
48,578
|
|
Property and equipment, net
|
|
|
|
|
29,114
|
|
|
|
|
45,335
|
|
Goodwill
|
|
|
|
|
3,784
|
|
|
|
|
13,271
|
|
Other assets
|
|
|
|
|
4,723
|
|
|
|
|
8,083
|
|
Total assets
|
|
|
|
$
|
83,402
|
|
|
|
$
|
115,267
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
25,309
|
|
|
|
$
|
26,075
|
|
Accrued expenses and other
|
|
|
|
|
13,739
|
|
|
|
|
15,844
|
|
Unearned revenue
|
|
|
|
|
4,768
|
|
|
|
|
5,153
|
|
Total current liabilities
|
|
|
|
|
43,816
|
|
|
|
|
47,072
|
|
Long-term debt
|
|
|
|
|
7,694
|
|
|
|
|
24,710
|
|
Other long-term liabilities
|
|
|
|
|
12,607
|
|
|
|
|
18,827
|
|
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 - 500 and 505
|
|
|
|
|
|
|
|
Outstanding shares - 477 and 482
|
|
|
|
|
5
|
|
|
|
|
5
|
|
Treasury stock, at cost
|
|
|
|
|
(1,837
|
)
|
|
|
|
(1,837
|
)
|
Additional paid-in capital
|
|
|
|
|
17,186
|
|
|
|
|
20,212
|
|
Accumulated other comprehensive loss
|
|
|
|
|
(985
|
)
|
|
|
|
(501
|
)
|
Retained earnings
|
|
|
|
|
4,916
|
|
|
|
|
6,779
|
|
Total stockholders' equity
|
|
|
|
|
19,285
|
|
|
|
|
24,658
|
|
Total liabilities and stockholders' equity
|
|
|
|
$
|
83,402
|
|
|
|
$
|
115,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Supplemental Financial Information and Business Metrics
|
(in millions, except per share data)
|
(unaudited)
|
|
|
|
|
|
Q2 2016
|
|
|
Q3 2016
|
|
|
Q4 2016
|
|
|
Q1 2017
|
|
|
Q2 2017
|
|
|
Q3 2017
|
|
|
Y/Y % Change
|
Cash Flows and Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow - trailing twelve months (TTM) (1)
|
|
|
|
$
|
13,049
|
|
|
|
$
|
15,004
|
|
|
|
$
|
17,272
|
|
|
|
$
|
17,634
|
|
|
|
$
|
17,885
|
|
|
|
$
|
17,077
|
|
|
|
14
|
%
|
Operating cash flow - TTM Y/Y growth
|
|
|
|
|
45
|
%
|
|
|
|
51
|
%
|
|
|
|
43
|
%
|
|
|
|
53
|
%
|
|
|
|
37
|
%
|
|
|
|
14
|
%
|
|
|
N/A
|
|
Purchases of property and equipment, including internal-use
software and website development, net - TTM
|
|
|
|
$
|
5,395
|
|
|
|
$
|
6,040
|
|
|
|
$
|
6,737
|
|
|
|
$
|
7,417
|
|
|
|
$
|
8,207
|
|
|
|
$
|
9,027
|
|
|
|
49
|
%
|
Principal repayments of capital lease obligations - TTM
|
|
|
|
$
|
3,298
|
|
|
|
$
|
3,579
|
|
|
|
$
|
3,860
|
|
|
|
$
|
3,891
|
|
|
|
$
|
4,003
|
|
|
|
$
|
4,331
|
|
|
|
21
|
%
|
Principal repayments of finance lease obligations - TTM
|
|
|
|
$
|
108
|
|
|
|
$
|
131
|
|
|
|
$
|
147
|
|
|
|
$
|
155
|
|
|
|
$
|
170
|
|
|
|
$
|
175
|
|
|
|
34
|
%
|
Property and equipment acquired under capital leases - TTM
|
|
|
|
$
|
4,676
|
|
|
|
$
|
4,998
|
|
|
|
$
|
5,704
|
|
|
|
$
|
6,717
|
|
|
|
$
|
8,019
|
|
|
|
$
|
8,905
|
|
|
|
78
|
%
|
Free cash flow - TTM (1) (2)
|
|
|
|
$
|
7,654
|
|
|
|
$
|
8,964
|
|
|
|
$
|
10,535
|
|
|
|
$
|
10,217
|
|
|
|
$
|
9,678
|
|
|
|
$
|
8,050
|
|
|
|
(10
|
)%
|
Free cash flow less lease principal repayments - TTM (1) (3)
|
|
|
|
$
|
4,248
|
|
|
|
$
|
5,254
|
|
|
|
$
|
6,528
|
|
|
|
$
|
6,171
|
|
|
|
$
|
5,505
|
|
|
|
$
|
3,544
|
|
|
|
(33
|
)%
|
Free cash flow less finance lease principal repayments and assets
acquired under capital leases - TTM (1) (4)
|
|
|
|
$
|
2,870
|
|
|
|
$
|
3,835
|
|
|
|
$
|
4,684
|
|
|
|
$
|
3,345
|
|
|
|
$
|
1,489
|
|
|
|
$
|
(1,030
|
)
|
|
|
(127
|
)%
|
Invested capital (5)
|
|
|
|
$
|
34,695
|
|
|
|
$
|
36,722
|
|
|
|
$
|
39,126
|
|
|
|
$
|
42,114
|
|
|
|
$
|
45,537
|
|
|
|
$
|
52,690
|
|
|
|
44
|
%
|
Common shares and stock-based awards outstanding
|
|
|
|
|
495
|
|
|
|
|
496
|
|
|
|
|
497
|
|
|
|
|
497
|
|
|
|
|
502
|
|
|
|
|
503
|
|
|
|
1
|
%
|
Common shares outstanding
|
|
|
|
|
474
|
|
|
|
|
475
|
|
|
|
|
477
|
|
|
|
|
478
|
|
|
|
|
480
|
|
|
|
|
482
|
|
|
|
1
|
%
|
Stock-based awards outstanding
|
|
|
|
|
21
|
|
|
|
|
21
|
|
|
|
|
20
|
|
|
|
|
20
|
|
|
|
|
22
|
|
|
|
|
21
|
|
|
|
1
|
%
|
Stock-based awards outstanding - % of common shares outstanding
|
|
|
|
|
4.4
|
%
|
|
|
|
4.4
|
%
|
|
|
|
4.2
|
%
|
|
|
|
4.1
|
%
|
|
|
|
4.5
|
%
|
|
|
|
4.4
|
%
|
|
|
N/A
|
|
Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide (WW) net sales
|
|
|
|
$
|
30,404
|
|
|
|
$
|
32,714
|
|
|
|
$
|
43,741
|
|
|
|
$
|
35,714
|
|
|
|
$
|
37,955
|
|
|
|
$
|
43,744
|
|
|
|
34
|
%
|
WW net sales - Y/Y growth, excluding F/X
|
|
|
|
|
30
|
%
|
|
|
|
29
|
%
|
|
|
|
24
|
%
|
|
|
|
24
|
%
|
|
|
|
26
|
%
|
|
|
|
33
|
%
|
|
|
N/A
|
|
WW net sales - TTM
|
|
|
|
$
|
120,637
|
|
|
|
$
|
127,993
|
|
|
|
$
|
135,987
|
|
|
|
$
|
142,572
|
|
|
|
$
|
150,123
|
|
|
|
$
|
161,154
|
|
|
|
26
|
%
|
WW net sales - TTM Y/Y growth, excluding F/X
|
|
|
|
|
29
|
%
|
|
|
|
28
|
%
|
|
|
|
28
|
%
|
|
|
|
26
|
%
|
|
|
|
26
|
%
|
|
|
|
27
|
%
|
|
|
N/A
|
|
Operating income
|
|
|
|
$
|
1,285
|
|
|
|
$
|
575
|
|
|
|
$
|
1,255
|
|
|
|
$
|
1,005
|
|
|
|
$
|
628
|
|
|
|
$
|
347
|
|
|
|
(40
|
)%
|
FX impact - favorable (unfavorable)
|
|
|
|
$
|
45
|
|
|
|
$
|
8
|
|
|
|
$
|
7
|
|
|
|
$
|
(31
|
)
|
|
|
$
|
(38
|
)
|
|
|
$
|
(39
|
)
|
|
|
N/A
|
|
Operating income - Y/Y growth (decline), excluding F/X
|
|
|
|
|
168
|
%
|
|
|
|
40
|
%
|
|
|
|
13
|
%
|
|
|
|
(3
|
)%
|
|
|
|
(48
|
)%
|
|
|
|
(33
|
)%
|
|
|
N/A
|
|
Operating margin - % of WW net sales
|
|
|
|
|
4.2
|
%
|
|
|
|
1.8
|
%
|
|
|
|
2.9
|
%
|
|
|
|
2.8
|
%
|
|
|
|
1.7
|
%
|
|
|
|
0.8
|
%
|
|
|
N/A
|
|
Operating income - TTM
|
|
|
|
$
|
3,871
|
|
|
|
$
|
4,040
|
|
|
|
$
|
4,186
|
|
|
|
$
|
4,120
|
|
|
|
$
|
3,462
|
|
|
|
$
|
3,234
|
|
|
|
(20
|
)%
|
Operating income - TTM Y/Y growth (decline), excluding F/X
|
|
|
|
|
388
|
%
|
|
|
|
128
|
%
|
|
|
|
83
|
%
|
|
|
|
34
|
%
|
|
|
|
(9
|
)%
|
|
|
|
(17
|
)%
|
|
|
N/A
|
|
Operating margin - TTM % of WW net sales
|
|
|
|
|
3.2
|
%
|
|
|
|
3.2
|
%
|
|
|
|
3.1
|
%
|
|
|
|
2.9
|
%
|
|
|
|
2.3
|
%
|
|
|
|
2.0
|
%
|
|
|
N/A
|
|
Net income
|
|
|
|
$
|
857
|
|
|
|
$
|
252
|
|
|
|
$
|
749
|
|
|
|
$
|
724
|
|
|
|
$
|
197
|
|
|
|
$
|
256
|
|
|
|
1
|
%
|
Net income per diluted share
|
|
|
|
$
|
1.78
|
|
|
|
$
|
0.52
|
|
|
|
$
|
1.54
|
|
|
|
$
|
1.48
|
|
|
|
$
|
0.40
|
|
|
|
$
|
0.52
|
|
|
|
(1
|
)%
|
Net income - TTM
|
|
|
|
$
|
1,931
|
|
|
|
$
|
2,105
|
|
|
|
$
|
2,371
|
|
|
|
$
|
2,583
|
|
|
|
$
|
1,922
|
|
|
|
$
|
1,926
|
|
|
|
(9
|
)%
|
Net income per diluted share - TTM
|
|
|
|
$
|
4.02
|
|
|
|
$
|
4.38
|
|
|
|
$
|
4.90
|
|
|
|
$
|
5.31
|
|
|
|
$
|
3.94
|
|
|
|
$
|
3.94
|
|
|
|
(10
|
)%
|
______________________________
|
(1)
|
|
|
|
As a result of accounting guidance adopted in Q1 2017, we
retrospectively adjusted our consolidated statements of cash flows
to reclassify excess tax benefits from financing activities to
operating activities. The amount of the adjustment was $323 million
for TTM Q2 2016, $401 million for TTM Q3 2016, and $829 million for
TTM Q4 2016.
|
(2)
|
|
|
|
Free cash flow is cash flow from operations reduced by "Purchases of
property and equipment, including internal-use software and website
development, net," which is included in cash flow from investing
activities.
|
(3)
|
|
|
|
Free cash flow less lease principal repayments is free cash flow
reduced by "Principal repayments of capital lease obligations," and
"Principal repayments of finance lease obligations," which are
included in cash flow from financing activities.
|
(4)
|
|
|
|
Free cash flow less finance lease principal repayments and assets
acquired under capital leases is free cash flow reduced by
"Principal repayments of finance lease obligations," which is
included in cash flow from financing activities, and 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 with cash, which is not the case as these
assets have been leased.
|
(5)
|
|
|
|
Average Total Assets minus Current Liabilities (excluding current
portion of Long-Term Debt and current portion of capital lease
obligations and finance lease obligations) over five quarter ends.
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Supplemental Financial Information and Business Metrics
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
Q2 2016
|
|
|
Q3 2016
|
|
|
Q4 2016
|
|
|
Q1 2017
|
|
|
Q2 2017
|
|
|
Q3 2017
|
|
|
Y/Y % Change
|
Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
17,674
|
|
|
|
$
|
18,874
|
|
|
|
$
|
26,240
|
|
|
|
$
|
20,992
|
|
|
|
$
|
22,370
|
|
|
|
$
|
25,446
|
|
|
|
35
|
%
|
Net sales - Y/Y growth, excluding F/X
|
|
|
|
|
28
|
%
|
|
|
|
26
|
%
|
|
|
|
22
|
%
|
|
|
|
23
|
%
|
|
|
|
27
|
%
|
|
|
|
35
|
%
|
|
|
N/A
|
|
Net sales - TTM
|
|
|
|
$
|
71,176
|
|
|
|
$
|
75,045
|
|
|
|
$
|
79,785
|
|
|
|
$
|
83,781
|
|
|
|
$
|
88,476
|
|
|
|
$
|
95,048
|
|
|
|
27
|
%
|
Operating Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
$
|
702
|
|
|
|
$
|
255
|
|
|
|
$
|
816
|
|
|
|
$
|
596
|
|
|
|
$
|
436
|
|
|
|
$
|
112
|
|
|
|
(56
|
)%
|
FX impact - favorable (unfavorable)
|
|
|
|
$
|
5
|
|
|
|
$
|
6
|
|
|
|
$
|
11
|
|
|
|
$
|
4
|
|
|
|
$
|
11
|
|
|
|
$
|
(12
|
)
|
|
|
N/A
|
|
Operating income - Y/Y growth (decline), excluding F/X
|
|
|
|
|
100
|
%
|
|
|
|
34
|
%
|
|
|
|
26
|
%
|
|
|
|
1
|
%
|
|
|
|
(40
|
)%
|
|
|
|
(51
|
)%
|
|
|
N/A
|
|
Operating margin - % of North America net sales
|
|
|
|
|
4.0
|
%
|
|
|
|
1.3
|
%
|
|
|
|
3.1
|
%
|
|
|
|
2.8
|
%
|
|
|
|
1.9
|
%
|
|
|
|
0.4
|
%
|
|
|
N/A
|
|
Operating income - TTM
|
|
|
|
$
|
2,113
|
|
|
|
$
|
2,182
|
|
|
|
$
|
2,361
|
|
|
|
$
|
2,369
|
|
|
|
$
|
2,102
|
|
|
|
$
|
1,960
|
|
|
|
(10
|
)%
|
Operating margin - TTM % of North America net sales
|
|
|
|
|
3.0
|
%
|
|
|
|
2.9
|
%
|
|
|
|
3.0
|
%
|
|
|
|
2.8
|
%
|
|
|
|
2.4
|
%
|
|
|
|
2.1
|
%
|
|
|
N/A
|
|
International Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
9,844
|
|
|
|
$
|
10,609
|
|
|
|
$
|
13,965
|
|
|
|
$
|
11,061
|
|
|
|
$
|
11,485
|
|
|
|
$
|
13,714
|
|
|
|
29
|
%
|
Net sales - Y/Y growth, excluding F/X
|
|
|
|
|
28
|
%
|
|
|
|
28
|
%
|
|
|
|
23
|
%
|
|
|
|
21
|
%
|
|
|
|
22
|
%
|
|
|
|
28
|
%
|
|
|
N/A
|
|
Net sales - TTM
|
|
|
|
$
|
39,518
|
|
|
|
$
|
41,860
|
|
|
|
$
|
43,983
|
|
|
|
$
|
45,477
|
|
|
|
$
|
47,119
|
|
|
|
$
|
50,224
|
|
|
|
20
|
%
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
$
|
(135
|
)
|
|
|
$
|
(541
|
)
|
|
|
$
|
(487
|
)
|
|
|
$
|
(481
|
)
|
|
|
$
|
(724
|
)
|
|
|
$
|
(936
|
)
|
|
|
73
|
%
|
FX impact - favorable (unfavorable)
|
|
|
|
$
|
40
|
|
|
|
$
|
22
|
|
|
|
$
|
5
|
|
|
|
$
|
(32
|
)
|
|
|
$
|
(59
|
)
|
|
|
$
|
(13
|
)
|
|
|
N/A
|
|
Operating income/loss - Y/Y growth (decline), excluding F/X
|
|
|
|
|
(8
|
)%
|
|
|
|
171
|
%
|
|
|
|
354
|
%
|
|
|
|
272
|
%
|
|
|
|
393
|
%
|
|
|
|
71
|
%
|
|
|
N/A
|
|
Operating margin - % of International net sales
|
|
|
|
|
(1.4
|
)%
|
|
|
|
(5.1
|
)%
|
|
|
|
(3.5
|
)%
|
|
|
|
(4.4
|
)%
|
|
|
|
(6.3
|
)%
|
|
|
|
(6.8
|
)%
|
|
|
N/A
|
|
Operating income (loss) - TTM
|
|
|
|
$
|
(571
|
)
|
|
|
$
|
(905
|
)
|
|
|
$
|
(1,283
|
)
|
|
|
$
|
(1,644
|
)
|
|
|
$
|
(2,233
|
)
|
|
|
$
|
(2,629
|
)
|
|
|
191
|
%
|
Operating margin - TTM % of International net sales
|
|
|
|
|
(1.4
|
)%
|
|
|
|
(2.2
|
)%
|
|
|
|
(2.9
|
)%
|
|
|
|
(3.6
|
)%
|
|
|
|
(4.7
|
)%
|
|
|
|
(5.2
|
)%
|
|
|
N/A
|
|
AWS Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
2,886
|
|
|
|
$
|
3,231
|
|
|
|
$
|
3,536
|
|
|
|
$
|
3,661
|
|
|
|
$
|
4,100
|
|
|
|
$
|
4,584
|
|
|
|
42
|
%
|
Net sales - Y/Y growth, excluding F/X
|
|
|
|
|
58
|
%
|
|
|
|
55
|
%
|
|
|
|
47
|
%
|
|
|
|
43
|
%
|
|
|
|
42
|
%
|
|
|
|
42
|
%
|
|
|
N/A
|
|
Net sales - TTM
|
|
|
|
$
|
9,943
|
|
|
|
$
|
11,088
|
|
|
|
$
|
12,219
|
|
|
|
$
|
13,314
|
|
|
|
$
|
14,529
|
|
|
|
$
|
15,882
|
|
|
|
43
|
%
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
$
|
718
|
|
|
|
$
|
861
|
|
|
|
$
|
926
|
|
|
|
$
|
890
|
|
|
|
$
|
916
|
|
|
|
$
|
1,171
|
|
|
|
36
|
%
|
FX impact - favorable (unfavorable)
|
|
|
|
$
|
-
|
|
|
|
$
|
(20
|
)
|
|
|
$
|
(9
|
)
|
|
|
$
|
(3
|
)
|
|
|
$
|
10
|
|
|
|
$
|
(14
|
)
|
|
|
N/A
|
|
Operating income - Y/Y growth, excluding F/X
|
|
|
|
|
136
|
%
|
|
|
|
106
|
%
|
|
|
|
61
|
%
|
|
|
|
48
|
%
|
|
|
|
26
|
%
|
|
|
|
38
|
%
|
|
|
N/A
|
|
Operating margin - % of AWS net sales
|
|
|
|
|
24.9
|
%
|
|
|
|
26.6
|
%
|
|
|
|
26.2
|
%
|
|
|
|
24.3
|
%
|
|
|
|
22.3
|
%
|
|
|
|
25.5
|
%
|
|
|
N/A
|
|
Operating income - TTM
|
|
|
|
$
|
2,329
|
|
|
|
$
|
2,762
|
|
|
|
$
|
3,108
|
|
|
|
$
|
3,395
|
|
|
|
$
|
3,593
|
|
|
|
$
|
3,903
|
|
|
|
41
|
%
|
Operating margin - TTM % of AWS net sales
|
|
|
|
|
23.4
|
%
|
|
|
|
24.9
|
%
|
|
|
|
25.4
|
%
|
|
|
|
25.5
|
%
|
|
|
|
24.7
|
%
|
|
|
|
24.6
|
%
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Supplemental Financial Information and Business Metrics
|
(in millions, except employee data)
|
(unaudited)
|
|
|
|
|
Q2 2016
|
|
|
Q3 2016
|
|
|
Q4 2016
|
|
|
Q1 2017
|
|
|
Q2 2017
|
|
|
Q3 2017
|
|
|
Y/Y % Change
|
Net Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online stores (1)
|
|
|
$
|
20,378
|
|
|
|
$
|
21,590
|
|
|
|
$
|
29,548
|
|
|
|
$
|
22,826
|
|
|
|
$
|
23,754
|
|
|
|
$
|
26,392
|
|
|
|
22
|
%
|
Online stores - Y/Y growth, excluding F/X
|
|
|
|
22
|
%
|
|
|
|
20
|
%
|
|
|
|
16
|
%
|
|
|
|
16
|
%
|
|
|
|
18
|
%
|
|
|
|
22
|
%
|
|
|
N/A
|
|
Physical stores (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,276
|
|
|
|
N/A
|
|
Third-party seller services (3)
|
|
|
$
|
5,083
|
|
|
|
$
|
5,652
|
|
|
|
$
|
7,456
|
|
|
|
$
|
6,438
|
|
|
|
$
|
6,991
|
|
|
|
$
|
7,928
|
|
|
|
40
|
%
|
Third-party seller services - Y/Y growth, excluding F/X
|
|
|
|
48
|
%
|
|
|
|
46
|
%
|
|
|
|
39
|
%
|
|
|
|
36
|
%
|
|
|
|
40
|
%
|
|
|
|
40
|
%
|
|
|
N/A
|
|
Subscription services (4)
|
|
|
$
|
1,431
|
|
|
|
$
|
1,532
|
|
|
|
$
|
2,130
|
|
|
|
$
|
1,939
|
|
|
|
$
|
2,165
|
|
|
|
$
|
2,441
|
|
|
|
59
|
%
|
Subscription services - Y/Y growth, excluding F/X
|
|
|
|
52
|
%
|
|
|
|
47
|
%
|
|
|
|
33
|
%
|
|
|
|
52
|
%
|
|
|
|
53
|
%
|
|
|
|
59
|
%
|
|
|
N/A
|
|
AWS
|
|
|
$
|
2,886
|
|
|
|
$
|
3,231
|
|
|
|
$
|
3,536
|
|
|
|
$
|
3,661
|
|
|
|
$
|
4,100
|
|
|
|
$
|
4,584
|
|
|
|
42
|
%
|
AWS - Y/Y growth, excluding F/X
|
|
|
|
58
|
%
|
|
|
|
55
|
%
|
|
|
|
47
|
%
|
|
|
|
43
|
%
|
|
|
|
42
|
%
|
|
|
|
42
|
%
|
|
|
N/A
|
|
Other (5)
|
|
|
$
|
626
|
|
|
|
$
|
709
|
|
|
|
$
|
1,071
|
|
|
|
$
|
850
|
|
|
|
$
|
945
|
|
|
|
$
|
1,123
|
|
|
|
58
|
%
|
Other - Y/Y growth, excluding F/X
|
|
|
|
65
|
%
|
|
|
|
74
|
%
|
|
|
|
99
|
%
|
|
|
|
58
|
%
|
|
|
|
53
|
%
|
|
|
|
58
|
%
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based Compensation Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
$
|
7
|
|
|
|
$
|
9
|
|
|
|
$
|
8
|
|
|
|
$
|
12
|
|
|
|
$
|
13
|
|
|
|
72
|
%
|
Fulfillment
|
|
|
$
|
186
|
|
|
|
$
|
165
|
|
|
|
$
|
190
|
|
|
|
$
|
163
|
|
|
|
$
|
261
|
|
|
|
$
|
230
|
|
|
|
39
|
%
|
Marketing
|
|
|
$
|
80
|
|
|
|
$
|
85
|
|
|
|
$
|
102
|
|
|
|
$
|
94
|
|
|
|
$
|
133
|
|
|
|
$
|
135
|
|
|
|
59
|
%
|
Technology and content
|
|
|
$
|
419
|
|
|
|
$
|
434
|
|
|
|
$
|
493
|
|
|
|
$
|
441
|
|
|
|
$
|
633
|
|
|
|
$
|
595
|
|
|
|
37
|
%
|
General and administrative
|
|
|
$
|
83
|
|
|
|
$
|
85
|
|
|
|
$
|
93
|
|
|
|
$
|
86
|
|
|
|
$
|
119
|
|
|
|
$
|
112
|
|
|
|
32
|
%
|
Total stock-based compensation expense
|
|
|
$
|
768
|
|
|
|
$
|
776
|
|
|
|
$
|
887
|
|
|
|
$
|
792
|
|
|
|
$
|
1,158
|
|
|
|
$
|
1,085
|
|
|
|
40
|
%
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WW shipping costs
|
|
|
$
|
3,362
|
|
|
|
$
|
3,897
|
|
|
|
$
|
5,634
|
|
|
|
$
|
4,383
|
|
|
|
$
|
4,568
|
|
|
|
$
|
5,401
|
|
|
|
39
|
%
|
WW shipping costs - Y/Y growth
|
|
|
|
44
|
%
|
|
|
|
43
|
%
|
|
|
|
35
|
%
|
|
|
|
34
|
%
|
|
|
|
36
|
%
|
|
|
|
39
|
%
|
|
|
N/A
|
|
WW paid units - Y/Y growth (6)
|
|
|
|
28
|
%
|
|
|
|
28
|
%
|
|
|
|
24
|
%
|
|
|
|
24
|
%
|
|
|
|
27
|
%
|
|
|
|
25
|
%
|
|
|
N/A
|
|
WW seller unit mix - % of WW paid units (6)
|
|
|
|
49
|
%
|
|
|
|
50
|
%
|
|
|
|
49
|
%
|
|
|
|
50
|
%
|
|
|
|
51
|
%
|
|
|
|
50
|
%
|
|
|
N/A
|
|
Employees (full-time and part-time; excludes contractors & temporary
personnel)
|
|
|
|
268,900
|
|
|
|
|
306,800
|
|
|
|
|
341,400
|
|
|
|
|
351,000
|
|
|
|
|
382,400
|
|
|
|
|
541,900
|
|
|
|
77
|
%
|
Employees (full-time and part-time; excludes contractors &
temporary personnel) - Y/Y growth
|
|
|
|
47
|
%
|
|
|
|
38
|
%
|
|
|
|
48
|
%
|
|
|
|
43
|
%
|
|
|
|
42
|
%
|
|
|
|
77
|
%
|
|
|
N/A
|
|
________________________
|
(1)
|
|
|
|
Includes product sales and digital media content where we record
revenue gross. We leverage our retail infrastructure to offer a wide
selection of consumable and durable goods that includes electronics
and general merchandise as well as media products available in both
a physical and digital format, such as books, music, videos, games,
and software. These product sales include digital products sold on a
transactional basis. Digital product subscriptions that provide
unlimited viewing or usage rights are included in Subscription
services.
|
(2)
|
|
|
|
Includes product sales where our customers physically select items
in a store.
|
(3)
|
|
|
|
Includes commissions, related fulfillment and shipping fees, and
other third-party seller services.
|
(4)
|
|
|
|
Includes annual and monthly fees associated with Amazon Prime
membership, as well as audiobook, e-book, digital video, digital
music, and other non-AWS subscription services.
|
(5)
|
|
|
|
Includes sales not otherwise included above, such as certain
advertising services and our co-branded credit card agreements.
|
(6)
|
|
|
|
Excludes the impact of Whole Foods Market.
|
|
|
|
|
|
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 customer account IDs that are eligible to use AWS services.
This includes AWS accounts in the AWS free tier. Multiple users
accessing AWS services via one account ID 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 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171026006422/en/
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