EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

AMAZON.COM ANNOUNCES FIRST QUARTER SALES UP 46% TO $7.13 BILLION

SEATTLE—(BUSINESS WIRE)—April 22, 2010—Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its first quarter ended March 31, 2010.

Operating cash flow was $2.78 billion for the trailing twelve months, compared with $1.76 billion for the trailing twelve months ended March 31, 2009. Free cash flow increased 62% to $2.32 billion for the trailing twelve months, compared with $1.43 billion for the trailing twelve months ended March 31, 2009.

Common shares outstanding plus shares underlying stock-based awards totaled 463 million on March 31, 2010, compared with 447 million a year ago.

Net sales increased 46% to $7.13 billion in the first quarter, compared with $4.89 billion in first quarter 2009. Excluding the $185 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 42% compared with first quarter 2009.

Operating income increased 62% to $394 million in the first quarter, compared with $244 million in first quarter 2009. Excluding the $15 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, operating income would have grown 56% compared with first quarter 2009.

Net income increased 68% to $299 million in the first quarter, or $0.66 per diluted share, compared with net income of $177 million, or $0.41 per diluted share, in first quarter 2009.

“We remain heads-down focused on customers,” said Jeff Bezos, founder and CEO of Amazon.com. “Amazon Prime has just celebrated its fifth anniversary, adoption of Amazon Web Services continues to accelerate, Kindle remains our #1 bestselling product, and earlier this week, Kindle selection reached 500,000 titles.”

Highlights

 

   

North America segment sales, representing the Company’s U.S. and Canadian sites, were $3.78 billion, up 47% from first quarter 2009.

 

   

International segment sales, representing the Company’s U.K., German, Japanese, French and Chinese sites, were $3.35 billion, up 45% from first quarter 2009. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 37%.

 

   

Worldwide Media sales grew 26% to $3.43 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 22%.

 

   

Worldwide Electronics & Other General Merchandise sales grew 72% to $3.51 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 68%.

 

   

Amazon Prime, a program that allows customers to take advantage of unlimited expedited shipping for a low annual fee, celebrated its fifth anniversary. In the last five years, we have introduced Amazon Prime to customers in the U.S., Japan, the United Kingdom, Germany, and France.

 

   

Amazon WebStore introduced new capabilities and a self-service toolset that improve flexibility and control over a Seller’s site design, branding, and catalog offering. Amazon WebStore incorporates Amazon’s expertise, and makes building and operating an eCommerce business fast, easy and low cost.

 

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Amazon Web Services (AWS) introduced Amazon Simple Notification Service (Amazon SNS), a new offering that provides developers with a highly scalable, flexible, and cost-effective capability to publish messages from an application and immediately deliver them to subscribers or other applications.

 

   

During the quarter, AWS lowered pricing for outbound data transfer by up to 40%. By aggregating total Data Transfer Out usage across multiple services, customers can reach higher tiers and lower pricing more quickly.

 

   

AWS announced the availability of Reserved Instances with Windows for Amazon EC2. Customers running Windows Server can choose to pay a low, upfront fee to guarantee the right to run a compute instance at a significantly discounted hourly price.

 

   

The Company announced that authors and publishers around the world can now use the self-service Kindle Digital Text Platform (DTP) to upload and make available their books in Spanish, Portuguese and Italian to customers worldwide in the Kindle Store. Authors and publishers already have the ability to upload and make available their books in English, French and German.

 

   

The U.S. Kindle Store now has more than 500,000 books, including 100 of 111 New York Times Bestsellers, more than 9,000 blogs, and more than 175 top U.S. and International newspapers and magazines, including: The New York Times, Le Monde, USA Today, The Times (U.K.), The Economist, Fortune, Newsweek, and Time.

 

   

Kindle, the #1 bestselling product on Amazon, is available for immediate shipment for $259 and comes with 3G wireless with no annual contract or monthly fees. Kindle weighs only 10.2 ounces and reads like real paper without glare – even in bright sunlight.

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of April 22, 2010. 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 2010 Guidance

 

   

Net sales are expected to be between $6.1 billion and $6.7 billion, or to grow between 31% and 44% compared with second quarter 2009.

 

   

Operating income is expected to be between $220 million and $320 million, or to grow between 39% and 102% compared with second quarter 2009. The second quarter 2009 results include the impact of our settlement with Toysrus.com LLC for $51 million, substantially all of which was expensed during the quarter.

 

   

This guidance includes approximately $130 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates.

A conference call will be webcast live today at 2 p.m. PT/5 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

 

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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 center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains and develops commercial agreements, acquisitions and strategic transactions, 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, payments 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, including its most recent Annual Report on Form 10-K and subsequent filings.

About Amazon.com

Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth’s Biggest Selection. Amazon.com, Inc. seeks to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto & Industrial. Amazon Web Services provides Amazon’s developer customers with access to in-the-cloud infrastructure services based on Amazon’s own back-end technology platform, which developers can use to enable virtually any type of business. Kindle and Kindle DX are the revolutionary portable readers that wirelessly download books, magazines, newspapers, blogs and personal documents to a crisp, high-resolution electronic ink display that looks and reads like real paper. Kindle and Kindle DX utilize the same 3G wireless technology as advanced cell phones, so users never need to hunt for a Wi-Fi hotspot. Kindle is the #1 bestselling product across the millions of items sold on Amazon.

Amazon and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, and www.amazon.cn. As used herein, “Amazon.com,” “we,” “our” and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.

 

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AMAZON.COM, INC.

Consolidated Statements of Cash Flows

(in millions)

(unaudited)

 

     Three Months Ended
March 31,
    Twelve Months Ended
March 31,
 
     2010     2009     2010     2009  

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

   $ 3,444      $ 2,769      $ 1,701      $ 1,496   

OPERATING ACTIVITIES:

        

Net income

     299        177        1,024        679   

Adjustments to reconcile net income to net cash from operating activities:

        

Depreciation of fixed assets, including internal-use software and website development, and other amortization

     119        87        411        309   

Stock-based compensation

     87        67        360        288   

Other operating expense (income), net

     26        11        118        (19

Losses (gains) on sales of marketable securities, net

     —          (2     (2     (1

Other expense (income), net

     (6     2        (23     (30

Deferred income taxes

     (20     —          63        14   

Excess tax benefits from stock-based compensation

     (86     (49     (141     (145

Changes in operating assets and liabilities:

        

Inventories

     321        107        (317     (273

Accounts receivable, net and other

     454        167        (195     (190

Accounts payable

     (1,892     (1,129     1,096        686   

Accrued expenses and other

     (361     (122     60        249   

Additions to unearned revenue

     188        206        1,036        576   

Amortization of previously unearned revenue

     (227     (107     (710     (386
                                

Net cash provided by (used in) operating activities

     (1,098     (585     2,780        1,757   

INVESTING ACTIVITIES:

        

Purchases of fixed assets, including internal-use software and website development

     (140     (55     (458     (326

Acquisitions, net of cash acquired, and other

     (19     (15     (43     (155

Sales and maturities of marketable securities and other investments

     872        314        2,524        1,348   

Purchases of marketable securities and other investments

     (1,255     (391     (4,755     (1,686
                                

Net cash provided by (used in) investing activities

     (542     (147     (2,732     (819

FINANCING ACTIVITIES:

        

Excess tax benefits from stock-based compensation

     86        49        141        145   

Common stock repurchased

     —          —          —          (100

Proceeds from long-term debt and other

     62        3        124        48   

Repayments of long-term debt and capital lease obligations

     (61     (343     (168     (673
                                

Net cash provided by (used in) financing activities

     87        (291     97        (580

Foreign-currency effect on cash and cash equivalents

     (47     (45     (2     (153
                                

Net increase (decrease) in cash and cash equivalents

     (1,600     (1,068     143        205   
                                

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ 1,844      $ 1,701      $ 1,844      $ 1,701   
                                

 

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AMAZON.COM, INC.

Consolidated Statements of Operations

(in millions, except per share data)

(unaudited)

 

     Three Months Ended
March 31,
 
     2010     2009  

Net sales

   $ 7,131      $ 4,889   

Operating expenses (1):

    

Cost of sales

     5,501        3,741   

Fulfillment

     546        422   

Marketing

     201        128   

Technology and content

     366        275   

General and administrative

     97        68   

Other operating expense (income), net

     26        11   
                

Total operating expenses

     6,737        4,645   
                

Income from operations

     394        244   

Interest income

     11        12   

Interest expense

     (7     (12

Other income (expense), net

     3        4   
                

Total non-operating income (expense)

     7        4   
                

Income before income taxes

     401        248   

Provision for income taxes

     (100     (69

Equity-method investment activity, net of tax

     (2     (2
                

Net income

   $ 299      $ 177   
                

Basic earnings per share

   $ 0.67      $ 0.41   
                

Diluted earnings per share

   $ 0.66      $ 0.41   
                

Weighted average shares used in computation of earnings per share:

    

Basic

     445        429   
                

Diluted

     454        437   
                

 

(1)    Includes stock-based compensation as follows:

    

Fulfillment

   $ 18      $ 15   

Marketing

     5        4   

Technology and content

     47        36   

General and administrative

     17        12   

 

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AMAZON.COM, INC.

Segment Information

(in millions)

(unaudited)

 

     Three Months Ended
March 31,
 
     2010     2009  

North America

    

Net sales

   $ 3,780      $ 2,578   

Operating expenses:

    

Cost of sales

     2,761        1,884   

Direct segment operating expenses (1)

     746        544   
                

Segment operating income

   $ 273      $ 150   
                

International

    

Net sales

   $ 3,351      $ 2,311   

Operating expenses:

    

Cost of sales

     2,740        1,857   

Direct segment operating expenses (1)

     377        282   
                

Segment operating income

   $ 234      $ 172   
                

Consolidated

    

Net sales

   $ 7,131      $ 4,889   

Operating expenses:

    

Cost of sales

     5,501        3,741   

Direct segment operating expenses

     1,123        826   
                

Segment operating income

     507        322   

Stock-based compensation

     (87     (67

Other operating income (expense), net

     (26     (11
                

Income from operations

     394        244   

Total non-operating income (expense), net

     7        4   

Provision for income taxes

     (100     (69

Equity-method investment activity, net of tax

     (2     (2
                

Net income

   $ 299      $ 177   
                

Segment Highlights:

    

Y/Y net sales growth:

    

North America

     47     21

International

     45        15   

Consolidated

     46        18   

Y/Y segment operating income growth:

    

North America

     81     15

International

     37        34   

Consolidated

     58        25   

Net sales mix:

    

North America

     53     53

International

     47        47   

 

(1) A significant majority of our costs for “Technology and content” are incurred in the United States and most of these costs are allocated to our North America segment.

 

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AMAZON.COM, INC.

Supplemental Net Sales Information

(in millions)

(unaudited)

 

     Three Months Ended
March 31,
 
     2010     2009  

North America

    

Media

   $ 1,597      $ 1,305   

Electronics and other general merchandise

     2,024        1,172   

Other

     159        101   
                

Total North America

     3,780        2,578   

International

    

Media

     1,833        1,418   

Electronics and other general merchandise

     1,489        874   

Other

     29        19   
                

Total International

     3,351        2,311   

Consolidated

    

Media

     3,430        2,723   

Electronics and other general merchandise

     3,513        2,046   

Other

     188        120   
                

Total Consolidated

   $ 7,131      $ 4,889   
                

Y/Y Net Sales Growth:

    

North America:

    

Media

     22     8

Electronics and other general merchandise

     73        42   

Other

     57        7   

Total North America

     47        21   

International:

    

Media

     29     6

Electronics and other general merchandise

     70        34   

Other

     57        14   

Total International

     45        15   

Consolidated:

    

Media

     26     7

Electronics and other general merchandise

     72        38   

Other

     57        8   

Total Consolidated

     46        18   

Y/Y Net Sales Growth Excluding Effect of Exchange Rates:

    

International:

    

Media

     23     17

Electronics and other general merchandise

     61        50   

Other

     47        40   

Total International

     37        28   

Consolidated:

    

Media

     22     13

Electronics and other general merchandise

     68        46   

Other

     56        11   

Total Consolidated

     42        25   

Consolidated Net Sales Mix:

    

Media

     48     56

Electronics and other general merchandise

     49        42   

Other

     3        2   

 

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AMAZON.COM, INC.

Consolidated Balance Sheets

(in millions, except per share data)

 

     March 31,
2010
    December 31,
2009
 
     (unaudited)        

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 1,844      $ 3,444   

Marketable securities

     3,219        2,922   

Inventories

     1,820        2,171   

Accounts receivable, net and other

     815        988   

Deferred tax assets

     266        272   
                

Total current assets

     7,964        9,797   

Fixed assets, net

     1,436        1,290   

Deferred tax assets

     16        18   

Goodwill

     1,234        1,234   

Other assets

     1,392        1,474   
                

Total assets

   $ 12,042      $ 13,813   
                

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 3,619      $ 5,605   

Accrued expenses and other

     1,574        1,759   
                

Total current liabilities

     5,193        7,364   

Long-term debt

     131        109   

Other long-term liabilities

     1,100        1,083   

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 — 462 and 461

     —          —     

Outstanding shares — 446 and 444

     5        5   

Treasury stock, at cost

     (600     (600

Additional paid-in capital

     5,887        5,736   

Accumulated other comprehensive loss

     (145     (56

Retained earnings

     471        172   
                

Total stockholders’ equity

     5,618        5,257   
                

Total liabilities and stockholders’ equity

   $ 12,042      $ 13,813   
                

 

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AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except per share data)

(unaudited)

 

     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Y/Y %
Change
 

Cash Flows and Shares

            

Operating cash flow — trailing twelve months (TTM)

   $ 1,757      $ 1,878      $ 2,253      $ 3,293      $ 2,780      58

Purchases of fixed assets (incl. internal-use software & website development) — TTM

   $ 326      $ 336      $ 337      $ 373      $ 458      40

Free cash flow (operating cash flow less purchases of fixed assets) — TTM

   $ 1,431      $ 1,542      $ 1,916      $ 2,920      $ 2,322      62

Free cash flow — TTM Y/Y growth

     82     89     98     114     62   N/A   

Invested capital (1)

   $ 3,501      $ 3,666      $ 3,847      $ 4,449      $ 5,104      N/A   

Return on invested capital (2)

     41     42     50     66     45   N/A   

Common shares and stock-based awards outstanding

     447        451        451        461        463      4

Common shares outstanding

     429        432        433        444        446      4

Stock-based awards outstanding

     17        19        18        17        18      4

Stock-based awards outstanding — % of common shares outstanding

     4.0     4.4     4.2     3.8     4.0   N/A   

Results of Operations

            

Worldwide (WW) net sales

   $ 4,889      $ 4,651      $ 5,449      $ 9,519      $ 7,131      46

WW net sales — Y/Y growth, excluding F/X

     25     20     29     37     42   N/A   

WW net sales — TTM

   $ 19,921      $ 20,509      $ 21,693      $ 24,509      $ 26,750      34

WW net sales — TTM Y/Y growth, excluding F/X

     27     24     24     29     33   N/A   

Operating income (3)

   $ 244      $ 159      $ 251      $ 476      $ 394      62

Operating income — Y/Y growth (decrease), excluding F/X

     39     (13 )%      69     63     56   N/A   

Operating margin — % of WW net sales

     5.0     3.4     4.6     5.0     5.5   N/A   

Operating income — TTM (3) (4)

   $ 887      $ 829      $ 925      $ 1,129      $ 1,279      44

Operating income — TTM Y/Y growth, excluding F/X

     30     13     22     39     44   N/A   

Operating margin — TTM % of WW net sales

     4.5     4.0     4.3     4.6     4.8   N/A   

Net income (3)

   $ 177      $ 142      $ 199      $ 384      $ 299      68

Net income per diluted share

   $ 0.41      $ 0.32      $ 0.45      $ 0.85      $ 0.66      62

Net income — TTM (3) (4)

   $ 679      $ 663      $ 743      $ 902      $ 1,024      51

Net income per diluted share — TTM

   $ 1.56      $ 1.52      $ 1.69      $ 2.04      $ 2.30      47

Segments

            

North America Segment:

            

Net sales

   $ 2,578      $ 2,451      $ 2,843      $ 4,956      $ 3,780      47

Net sales — Y/Y growth, excluding F/X

     22     13     24     36     46   N/A   

Net sales — TTM

   $ 10,681      $ 10,963      $ 11,503      $ 12,828      $ 14,030      31

Operating income

   $ 150      $ 125      $ 156      $ 278      $ 273      81

Operating margin — % of North America net sales

     5.8     5.1     5.5     5.6     7.2   N/A   

Operating income — TTM

   $ 464      $ 494      $ 562      $ 709      $ 832      79

Operating income — TTM Y/Y growth, excluding F/X

     5     8     20     59     79   N/A   

Operating margin — TTM % of North America net sales

     4.4     4.5     4.9     5.5     5.9   N/A   

International Segment:

            

Net sales

   $ 2,311      $ 2,200      $ 2,606      $ 4,563      $ 3,351      45

Net sales — Y/Y growth, excluding F/X

     28     28     35     37     37   N/A   

Net sales — TTM

   $ 9,240      $ 9,546      $ 10,190      $ 11,681      $ 12,720      38

Net sales — TTM % of WW net sales

     46     47     47     48     48   N/A   

Operating income

   $ 172      $ 179      $ 194      $ 319      $ 234      37

Operating margin — % of International net sales

     7.4     8.1     7.4     7.0     7.0   N/A   

Operating income — TTM

   $ 692      $ 722      $ 773      $ 863      $ 925      34

Operating income — TTM Y/Y growth, excluding F/X

     52     49     49     41     33   N/A   

Operating margin — TTM % of International net sales

     7.5     7.6     7.6     7.4     7.3   N/A   

Consolidated Segments:

            

Operating expenses (5)

   $ 4,567      $ 4,347      $ 5,099      $ 8,922      $ 6,624      45

Operating expenses — TTM (5)

   $ 18,765      $ 19,293      $ 20,358      $ 22,937      $ 24,993      33

Operating income

   $ 322      $ 304      $ 350      $ 597      $ 507      58

Operating margin — % of consolidated sales

     6.6     6.5     6.4     6.3     7.1   N/A   

Operating income — TTM

   $ 1,156      $ 1,216      $ 1,335      $ 1,572      $ 1,757      52

Operating income — TTM Y/Y growth, excluding F/X

     28     29     35     48     51   N/A   

Operating margin — TTM % of consolidated net sales

     5.8     5.9     6.2     6.4     6.6   N/A   

 

9


AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except inventory turnover, accounts payable days and employee data)

(unaudited)

 

     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Y/Y %
Change
 

Supplemental

            

Supplemental North America Segment Net Sales:

            

Media

   $ 1,305      $ 1,148      $ 1,412      $ 2,099      $ 1,597      22

Media — Y/Y growth, excluding F/X

     9     0     14     19     22   N/A   

Media — TTM

   $ 5,450      $ 5,449      $ 5,616      $ 5,964      $ 6,255      15

Electronics and other general merchandise

   $ 1,172      $ 1,187      $ 1,293      $ 2,662      $ 2,024      73

Electronics and other general merchandise — Y/Y growth, excluding F/X

     42     29     36     54     73   N/A   

Electronics and other general merchandise — TTM

   $ 4,776      $ 5,043      $ 5,385      $ 6,314      $ 7,166      50

Electronics and other general merchandise — TTM % of North America net sales

     45     46     47     49     51   N/A   

Other

   $ 101      $ 116      $ 138      $ 195      $ 159      57

Other — TTM

   $ 455      $ 471      $ 502      $ 550      $ 608      34

Supplemental International Segment Net Sales:

            

Media

   $ 1,418      $ 1,294      $ 1,517      $ 2,580      $ 1,833      29

Media — Y/Y growth, excluding F/X

     17     12     22     26     23   N/A   

Media — TTM

   $ 5,814      $ 5,849      $ 6,118      $ 6,810      $ 7,225      24

Electronics and other general merchandise

   $ 874      $ 882      $ 1,064      $ 1,947      $ 1,489      70

Electronics and other general merchandise — Y/Y growth, excluding F/X

     50     60     58     56     61   N/A   

Electronics and other general merchandise — TTM

   $ 3,330      $ 3,603      $ 3,977      $ 4,768      $ 5,382      62

Electronics and other general merchandise — TTM % of International net sales

     36     38     39     41     42   N/A   

Other

   $ 19      $ 24      $ 25      $ 36      $ 29      57

Other — TTM

   $ 96      $ 94      $ 95      $ 103      $ 114      18

Supplemental Worldwide Net Sales:

            

Media

   $ 2,723      $ 2,442      $ 2,929      $ 4,679      $ 3,430      26

Media — Y/Y growth, excluding F/X

     13     7     18     23     22   N/A   

Media — TTM

   $ 11,264      $ 11,298      $ 11,734      $ 12,774      $ 13,480      20

Electronics and other general merchandise

   $ 2,046      $ 2,069      $ 2,357      $ 4,609      $ 3,513      72

Electronics and other general merchandise — Y/Y growth, excluding F/X

     46     41     45     54     68   N/A   

Electronics and other general merchandise — TTM

   $ 8,106      $ 8,646      $ 9,362      $ 11,082      $ 12,548      55

Electronics and other general merchandise — TTM % of WW net sales

     41     42     43     45     47   N/A   

Other

   $ 120      $ 140      $ 163      $ 231      $ 188      57

Other — TTM

   $ 551      $ 565      $ 597      $ 653      $ 722      31

Balance Sheet

            

Cash and marketable securities (6)

   $ 3,025      $ 3,504      $ 4,304      $ 6,672      $ 5,381      78

Inventory, net — ending

   $ 1,266      $ 1,325      $ 1,617      $ 2,171      $ 1,820      44

Inventory turnover, average — TTM

     12.5        12.4        12.1        12.2        12.6      1

Fixed assets, net

   $ 889      $ 981      $ 1,086      $ 1,290      $ 1,436      61

Accounts payable — ending

   $ 2,380      $ 2,508      $ 3,354      $ 5,605      $ 3,619      52

Accounts payable days — ending

     57        65        72        68        59      3

Other

            

WW shipping revenue

   $ 190      $ 185      $ 208      $ 341      $ 248      30

WW shipping costs

   $ 358      $ 332      $ 388      $ 696      $ 518      45

WW net shipping costs

   $ 168      $ 147      $ 180      $ 355      $ 270      61

WW net shipping costs — % of WW net sales

     3.4     3.1     3.3     3.7     3.8   N/A   

Employees (full-time and part-time; excludes contractors & temporary personnel)

     20,600        21,000        21,700        24,300        26,100      27

 

(1) Average Total Assets minus Current Liabilities (excluding current portion of Long Term Debt) over five quarter ends.
(2) TTM Free Cash Flow divided by Invested Capital.
(3) Q2 2009 includes the impact of our settlement with Toysrus.com LLC for $51 million.
(4) Q2 2008 includes a $53 million non-cash gain recognized on the sale of our European DVD rental assets.
(5) Represents cost of sales, fulfillment, marketing, technology and content, and general and administrative operating expenses, excluding stock-based compensation.
(6) Includes restricted cash, classified within “Other Assets” on our consolidated balance sheet, of: $295 million Q1 2009, $292 million Q2 2009, $303 million Q3 2009, $306 million in Q4 2009 and $318 million in Q1 2010.

 

10


Amazon.com, Inc.

Certain Definitions

Customer Accounts

 

   

References to customers mean customer accounts, which are unique e-mail addresses, established either when a customer’s initial order is shipped or when a customer orders from other sellers on our websites. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Enterprise Solutions program customers, Amazon.com Payments customers, Amazon Web Services 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. Seller accounts exclude Amazon Enterprise Solutions sellers. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period.

Registered Developers

 

   

References to registered developers mean cumulative registered developer accounts, which are established when potential developers enroll with Amazon Web Services and receive a developer access key.

Units

 

   

References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers at Amazon.com domains worldwide – such as www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca and www.amazon.cn, as well as Amazon.com-owned items sold through non-Amazon.com domains. Units sold do not include units associated with certain of our acquisitions or Amazon.com gift certificates.

 

Contacts:

 

    
Amazon.com Investor Relations      Amazon.com Public Relations
Rob Eldridge, 206/266-2171      Mary Osako, 206/266-7180
www.amazon.com/ir     

 

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