|
|   | | | << Back | | Amazon.com Announces Fourth Quarter Sales up 18% to $6.70 Billion; 2008 Free Cash Flow Grows 16% to $1.36 Billion | SEATTLE--(BUSINESS WIRE)--
Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its
fourth quarter ended December 31, 2008.
Operating cash flow was $1.70 billion in 2008, compared with $1.41 billion
in 2007. Free cash flow increased 16% to $1.36 billion in 2008, compared
with $1.18 billion in 2007.
Common shares outstanding plus shares underlying stock-based awards
outstanding totaled 446 million on December 31, 2008, compared with 435
million a year ago.
Net sales increased 18% to $6.70 billion in the fourth quarter, compared
with $5.67 billion in fourth quarter 2007. Excluding the $320 million
unfavorable impact from year-over-year changes in foreign exchange rates
throughout the quarter, net sales would have grown 24% compared with
fourth quarter 2007.
Operating income was $272 million in the fourth quarter, compared with
$271 million in fourth quarter 2007. Excluding the $26 million
unfavorable impact from year-over-year changes in foreign exchange rates
throughout the quarter, operating income would have grown 10% compared
with fourth quarter 2007.
Net income increased 9% to $225 million in the fourth quarter, or $0.52
per diluted share, compared with net income of $207 million, or $0.48
per diluted share, in fourth quarter 2007.
“We remain relentlessly focused on serving customers with low prices,
great selection and free shipping offers, including Amazon Prime,” said
Jeff Bezos, founder and CEO of Amazon.com. “We’re particularly grateful
for the unusually strong demand for Kindle in the fourth quarter.”
Full Year 2008
Net sales increased 29% to $19.17 billion, or 28% excluding the $127
million favorable impact from year-over-year changes in foreign exchange
rates throughout the year, compared with $14.84 billion in 2007.
Operating income increased 28% to $842 million, or 27% excluding the $10
million favorable impact from year-over-year changes in foreign exchange
rates throughout the year, compared with $655 million in 2007. Included
in 2008 operating income is a $53 million non-cash gain recognized on
the sale of the Company’s European DVD rental assets.
Net income increased 36% to $645 million in 2008, or $1.49 per diluted
share, compared with net income of $476 million, or $1.12 per diluted
share, in 2007.
Highlights
-
North America segment sales, representing the Company’s U.S. and
Canadian sites, were $3.63 billion, up 18% from fourth quarter 2007.
-
International segment sales, representing the Company’s U.K., German,
Japanese, French and Chinese sites, were $3.07 billion, up 19% from
fourth quarter 2007. Excluding the unfavorable impact from
year-over-year changes in foreign exchange rates throughout the
quarter, International sales grew 31%.
-
Worldwide Media sales grew 9% to $3.64 billion, compared with $3.33
billion in fourth quarter 2007.
-
Worldwide Electronics & Other General Merchandise sales grew 31% to
$2.89 billion, compared with $2.21 billion in fourth quarter 2007, and
increased to 43% of worldwide net sales compared with 39%.
-
Amazon.com introduced Frustration-Free Packaging, a multi-year
initiative designed to make it easier for consumers to liberate items
from their packaging by eliminating hard plastic clamshell cases,
plastic bindings and plastic-coated wire ties. Frustration-Free
Packaging is also more environmentally friendly than traditional
packaging. The program launched with products from leading
manufacturers including Fisher-Price, Mattel, Microsoft and Transcend.
-
Amazon.com shipped over 3 million units worldwide in fourth quarter
2008 on behalf of sellers who utilized Fulfillment by Amazon.
-
Amazon.co.uk launched the Amazon MP3 music service, offering more than
4 million DRM-free songs from all four major and hundreds of
independent labels that can be played on any MP3 player.
-
Amazon Web Services (AWS) launched Amazon CloudFront, a self-service,
pay-as-you-go web service for content delivery enabling global content
distribution and seamless integration with Amazon S3.
-
AWS launched the ability to run Microsoft Windows Server on Amazon
Elastic Compute Cloud (Amazon EC2) and enabled customers to run their
Amazon EC2 instances in two Availability Zones within a new European
Region with full-service features like Elastic IP addresses and Amazon
Elastic Block Store.
-
AWS introduced tiered pricing for Amazon S3, enabling customers’ costs
to decrease as their storage volume grows.
-
The Kindle Store contains the largest collection of e-books available
anywhere in the world. Selection increased by 45,000 titles in the
fourth quarter, bringing the total to 230,000 titles. One hundred
three out of 112 current New York Times bestsellers are available and,
along with most new releases, are priced at $9.99 or less. In
addition, the Kindle Store recently added The Arizona Republic, The
Baltimore Sun, The Orange County Register and USA Today and now offers
newspapers from 8 of the top 10 metro areas in the United States.
Financial Guidance
The following forward-looking statements reflect Amazon.com’s
expectations as of January 29, 2009. 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.
First Quarter 2009 Guidance
-
Net sales are expected to be between $4.525 billion and $4.925
billion, or to grow between 9% and 19% compared with first quarter
2008.
-
Operating income is expected to be between $125 million and $210
million, or between 37% decline and 6% growth compared with first
quarter 2008. This guidance includes approximately $75 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 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, indebtedness, 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; Computers & Office;
Electronics; Home & Garden; Grocery, Health & Beauty; Toys, Kids & Baby;
Apparel, Shoes & Jewelry; 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. Examples of the services offered by Amazon Web
Services are Amazon Elastic Compute Cloud (Amazon EC2), Amazon Simple
Storage Service (Amazon S3), Amazon Elastic Block Store, Amazon
SimpleDB, Amazon Simple Queue Service (Amazon SQS), Amazon Flexible
Payments Service (Amazon FPS), Amazon Mechanical Turk and Amazon
CloudFront.
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.
|
AMAZON.COM, INC.
|
|
Consolidated Statements of Cash Flows
|
|
(in millions)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2008
|
|
|
|
2007
|
|
|
|
2008
|
|
|
|
2007
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
$
|
1,650
|
|
|
$
|
1,366
|
|
|
$
|
2,539
|
|
|
$
|
1,022
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
225
|
|
|
|
207
|
|
|
|
645
|
|
|
|
476
|
|
|
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
|
|
|
77
|
|
|
|
63
|
|
|
|
287
|
|
|
|
246
|
|
|
Stock-based compensation
|
|
|
79
|
|
|
|
54
|
|
|
|
275
|
|
|
|
185
|
|
|
Other operating expense (income), net
|
|
|
8
|
|
|
|
3
|
|
|
|
(24
|
)
|
|
|
9
|
|
|
Losses (gains) on sales of marketable securities, net
|
|
|
-
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
1
|
|
|
Other expense (income), net
|
|
|
(17
|
)
|
|
|
(1
|
)
|
|
|
(34
|
)
|
|
|
12
|
|
|
Deferred income taxes
|
|
|
41
|
|
|
|
(97
|
)
|
|
|
(5
|
)
|
|
|
(99
|
)
|
|
Excess tax benefits from stock-based compensation
|
|
|
1
|
|
|
|
(163
|
)
|
|
|
(159
|
)
|
|
|
(257
|
)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
|
(102
|
)
|
|
|
(231
|
)
|
|
|
(232
|
)
|
|
|
(303
|
)
|
|
Accounts receivable, net and other
|
|
|
(324
|
)
|
|
|
(237
|
)
|
|
|
(218
|
)
|
|
|
(255
|
)
|
|
Accounts payable
|
|
|
1,336
|
|
|
|
1,144
|
|
|
|
812
|
|
|
|
928
|
|
|
Accrued expenses and other
|
|
|
209
|
|
|
|
399
|
|
|
|
247
|
|
|
|
429
|
|
|
Additions to unearned revenue
|
|
|
162
|
|
|
|
79
|
|
|
|
449
|
|
|
|
244
|
|
|
Amortization of previously unearned revenue
|
|
|
(124
|
)
|
|
|
(71
|
)
|
|
|
(344
|
)
|
|
|
(211
|
)
|
|
Net cash provided by operating activities
|
|
|
1,571
|
|
|
|
1,149
|
|
|
|
1,697
|
|
|
|
1,405
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Purchases of fixed assets, including internal-use software and
website development
|
|
|
(101
|
)
|
|
|
(73
|
)
|
|
|
(333
|
)
|
|
|
(224
|
)
|
|
Acquisitions, net of cash acquired, and other
|
|
|
(87
|
)
|
|
|
(29
|
)
|
|
|
(494
|
)
|
|
|
(75
|
)
|
|
Sales and maturities of marketable securities and other investments
|
|
|
272
|
|
|
|
115
|
|
|
|
1,305
|
|
|
|
1,271
|
|
|
Purchases of marketable securities and other investments
|
|
|
(449
|
)
|
|
|
(153
|
)
|
|
|
(1,677
|
)
|
|
|
(930
|
)
|
|
Net cash provided by (used in) investing activities
|
|
|
(365
|
)
|
|
|
(140
|
)
|
|
|
(1,199
|
)
|
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Proceeds from exercises of stock options
|
|
|
1
|
|
|
|
12
|
|
|
|
11
|
|
|
|
91
|
|
|
Excess tax benefits from stock-based compensation
|
|
|
(1
|
)
|
|
|
163
|
|
|
|
159
|
|
|
|
257
|
|
|
Common stock repurchased
|
|
|
(100
|
)
|
|
|
-
|
|
|
|
(100
|
)
|
|
|
(248
|
)
|
|
Proceeds from long-term debt and other
|
|
|
51
|
|
|
|
3
|
|
|
|
87
|
|
|
|
24
|
|
|
Repayments of long-term debt and capital lease obligations
|
|
|
(15
|
)
|
|
|
(10
|
)
|
|
|
(355
|
)
|
|
|
(74
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
(64
|
)
|
|
|
168
|
|
|
|
(198
|
)
|
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign-currency effect on cash and cash equivalents
|
|
|
(23
|
)
|
|
|
(4
|
)
|
|
|
(70
|
)
|
|
|
20
|
|
|
Net increase in cash and cash equivalents
|
|
|
1,119
|
|
|
|
1,173
|
|
|
|
230
|
|
|
|
1,517
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
2,769
|
|
|
$
|
2,539
|
|
|
$
|
2,769
|
|
|
$
|
2,539
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
64
|
|
|
$
|
67
|
|
|
Cash paid for income taxes
|
|
|
25
|
|
|
|
10
|
|
|
|
53
|
|
|
|
24
|
|
|
Fixed assets acquired under capital leases and other financing
arrangements
|
|
|
44
|
|
|
|
32
|
|
|
|
148
|
|
|
|
74
|
|
|
Fixed assets acquired under build-to-suit leases
|
|
|
37
|
|
|
|
15
|
|
|
|
72
|
|
|
|
15
|
|
|
Conversion of debt
|
|
|
-
|
|
|
|
-
|
|
|
|
605
|
|
|
|
1
|
|
|
AMAZON.COM, INC.
|
|
Consolidated Statements of Operations
|
|
(in millions, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2008
|
|
|
|
2007
|
|
|
|
2008
|
|
|
|
2007
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
6,704
|
|
|
$
|
5,673
|
|
|
$
|
19,166
|
|
|
$
|
14,835
|
|
|
Cost of sales
|
|
|
5,356
|
|
|
|
4,503
|
|
|
|
14,896
|
|
|
|
11,482
|
|
|
Gross profit
|
|
|
1,348
|
|
|
|
1,170
|
|
|
|
4,270
|
|
|
|
3,353
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (1):
|
|
|
|
|
|
|
|
|
|
Fulfillment
|
|
|
549
|
|
|
|
478
|
|
|
|
1,658
|
|
|
|
1,292
|
|
|
Marketing
|
|
|
169
|
|
|
|
133
|
|
|
|
482
|
|
|
|
344
|
|
|
Technology and content
|
|
|
278
|
|
|
|
221
|
|
|
|
1,033
|
|
|
|
818
|
|
|
General and administrative
|
|
|
72
|
|
|
|
64
|
|
|
|
279
|
|
|
|
235
|
|
|
Other operating expense (income), net (2)
|
|
|
8
|
|
|
|
3
|
|
|
|
(24
|
)
|
|
|
9
|
|
|
Total operating expenses
|
|
|
1,076
|
|
|
|
899
|
|
|
|
3,428
|
|
|
|
2,698
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
272
|
|
|
|
271
|
|
|
|
842
|
|
|
|
655
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
16
|
|
|
|
28
|
|
|
|
83
|
|
|
|
90
|
|
|
Interest expense
|
|
|
(12
|
)
|
|
|
(21
|
)
|
|
|
(71
|
)
|
|
|
(77
|
)
|
|
Other income (expense), net
|
|
|
26
|
|
|
|
3
|
|
|
|
47
|
|
|
|
(8
|
)
|
|
Total non-operating income
|
|
|
30
|
|
|
|
10
|
|
|
|
59
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
302
|
|
|
|
281
|
|
|
|
901
|
|
|
|
660
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
(79
|
)
|
|
|
(74
|
)
|
|
|
(247
|
)
|
|
|
(184
|
)
|
|
Equity-method investment activity, net of tax
|
|
|
2
|
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
-
|
|
|
Net income
|
|
$
|
225
|
|
|
$
|
207
|
|
|
$
|
645
|
|
|
$
|
476
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
0.52
|
|
|
$
|
0.50
|
|
|
$
|
1.52
|
|
|
$
|
1.15
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
0.52
|
|
|
$
|
0.48
|
|
|
$
|
1.49
|
|
|
$
|
1.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in computation of earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
428
|
|
|
|
416
|
|
|
|
423
|
|
|
|
413
|
|
|
Diluted
|
|
|
436
|
|
|
|
427
|
|
|
|
432
|
|
|
|
424
|
|
|
__________________________
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based compensation as follows:
|
|
|
|
|
|
|
|
|
|
Fulfillment
|
|
$
|
19
|
|
|
$
|
11
|
|
|
$
|
61
|
|
|
$
|
39
|
|
|
Marketing
|
|
|
4
|
|
|
|
2
|
|
|
|
13
|
|
|
|
8
|
|
|
Technology and content
|
|
|
42
|
|
|
|
31
|
|
|
|
151
|
|
|
|
103
|
|
|
General and administrative
|
|
|
14
|
|
|
|
10
|
|
|
|
50
|
|
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Q2 2008 includes a $53 million non-cash gain associated with the
sale of our European DVD rental assets.
|
|
AMAZON.COM, INC.
|
|
Segment Information
|
|
(in millions)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2008
|
|
|
|
2007
|
|
|
|
2008
|
|
|
|
2007
|
|
|
North America
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
3,631
|
|
|
$
|
3,084
|
|
|
$
|
10,228
|
|
|
$
|
8,095
|
|
|
Cost of sales
|
|
|
2,850
|
|
|
|
2,386
|
|
|
|
7,733
|
|
|
|
6,064
|
|
|
Gross profit
|
|
|
781
|
|
|
|
698
|
|
|
|
2,495
|
|
|
|
2,031
|
|
|
Direct segment operating expenses (1)
|
|
|
651
|
|
|
|
545
|
|
|
|
2,050
|
|
|
|
1,631
|
|
|
Segment operating income
|
|
$
|
130
|
|
|
$
|
153
|
|
|
$
|
445
|
|
|
$
|
400
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
3,073
|
|
|
$
|
2,589
|
|
|
$
|
8,938
|
|
|
$
|
6,740
|
|
|
Cost of sales
|
|
|
2,506
|
|
|
|
2,117
|
|
|
|
7,163
|
|
|
|
5,418
|
|
|
Gross profit
|
|
|
567
|
|
|
|
472
|
|
|
|
1,775
|
|
|
|
1,322
|
|
|
Direct segment operating expenses (1)
|
|
|
338
|
|
|
|
297
|
|
|
|
1,127
|
|
|
|
873
|
|
|
Segment operating income
|
|
$
|
229
|
|
|
$
|
175
|
|
|
$
|
648
|
|
|
$
|
449
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
6,704
|
|
|
$
|
5,673
|
|
|
$
|
19,166
|
|
|
$
|
14,835
|
|
|
Cost of sales
|
|
|
5,356
|
|
|
|
4,503
|
|
|
|
14,896
|
|
|
|
11,482
|
|
|
Gross profit
|
|
|
1,348
|
|
|
|
1,170
|
|
|
|
4,270
|
|
|
|
3,353
|
|
|
Direct segment operating expenses
|
|
|
989
|
|
|
|
842
|
|
|
|
3,177
|
|
|
|
2,504
|
|
|
Segment operating income
|
|
|
359
|
|
|
|
328
|
|
|
|
1,093
|
|
|
|
849
|
|
|
Stock-based compensation
|
|
|
(79
|
)
|
|
|
(54
|
)
|
|
|
(275
|
)
|
|
|
(185
|
)
|
|
Other operating income (expense), net (2)
|
|
|
(8
|
)
|
|
|
(3
|
)
|
|
|
24
|
|
|
|
(9
|
)
|
|
Income from operations
|
|
|
272
|
|
|
|
271
|
|
|
|
842
|
|
|
|
655
|
|
|
Total non-operating income, net
|
|
|
30
|
|
|
|
10
|
|
|
|
59
|
|
|
|
5
|
|
|
Provision for income taxes
|
|
|
(79
|
)
|
|
|
(74
|
)
|
|
|
(247
|
)
|
|
|
(184
|
)
|
|
Equity-method investment activity, net of tax
|
|
|
2
|
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
-
|
|
|
Net income
|
|
$
|
225
|
|
|
$
|
207
|
|
|
$
|
645
|
|
|
$
|
476
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Highlights:
|
|
|
|
|
|
|
|
|
|
Y/Y net sales growth:
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
18
|
%
|
|
|
40
|
%
|
|
|
26
|
%
|
|
|
38
|
%
|
|
International
|
|
|
19
|
|
|
|
46
|
|
|
|
33
|
|
|
|
39
|
|
|
Consolidated
|
|
|
18
|
|
|
|
42
|
|
|
|
29
|
|
|
|
39
|
|
|
Y/Y gross profit growth:
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
12
|
%
|
|
|
31
|
%
|
|
|
23
|
%
|
|
|
33
|
%
|
|
International
|
|
|
20
|
|
|
|
48
|
|
|
|
34
|
|
|
|
42
|
|
|
Consolidated
|
|
|
15
|
|
|
|
38
|
|
|
|
27
|
|
|
|
37
|
|
|
Y/Y segment operating income growth:
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
(15
|
%)
|
|
|
25
|
%
|
|
|
11
|
%
|
|
|
74
|
%
|
|
International
|
|
|
31
|
|
|
|
65
|
|
|
|
44
|
|
|
|
66
|
|
|
Consolidated
|
|
|
9
|
|
|
|
44
|
|
|
|
29
|
|
|
|
70
|
|
|
Net sales mix:
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
54
|
%
|
|
|
54
|
%
|
|
|
53
|
%
|
|
|
55
|
%
|
|
International
|
|
|
46
|
|
|
|
46
|
|
|
|
47
|
|
|
|
45
|
|
|
__________________________
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
(2) Q2 2008 includes a $53 million non-cash gain associated with the
sale of our European DVD rental assets.
|
|
AMAZON.COM, INC.
|
|
Supplemental Net Sales Information
|
|
(in millions)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2008
|
|
|
|
2007
|
|
|
|
2008
|
|
|
|
2007
|
|
|
North America
|
|
|
|
|
|
|
|
|
|
Media
|
|
$
|
1,751
|
|
|
$
|
1,637
|
|
|
$
|
5,350
|
|
|
$
|
4,630
|
|
|
Electronics and other general merchandise
|
|
|
1,733
|
|
|
|
1,336
|
|
|
|
4,430
|
|
|
|
3,139
|
|
|
Other
|
|
|
147
|
|
|
|
111
|
|
|
|
448
|
|
|
|
326
|
|
|
Total North America
|
|
|
3,631
|
|
|
|
3,084
|
|
|
|
10,228
|
|
|
|
8,095
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
1,889
|
|
|
|
1,692
|
|
|
|
5,734
|
|
|
|
4,612
|
|
|
Electronics and other general merchandise
|
|
|
1,156
|
|
|
|
877
|
|
|
|
3,110
|
|
|
|
2,071
|
|
|
Other
|
|
|
28
|
|
|
|
20
|
|
|
|
94
|
|
|
|
57
|
|
|
Total International
|
|
|
3,073
|
|
|
|
2,589
|
|
|
|
8,938
|
|
|
|
6,740
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
3,640
|
|
|
|
3,329
|
|
|
|
11,084
|
|
|
|
9,242
|
|
|
Electronics and other general merchandise
|
|
|
2,889
|
|
|
|
2,213
|
|
|
|
7,540
|
|
|
|
5,210
|
|
|
Other
|
|
|
175
|
|
|
|
131
|
|
|
|
542
|
|
|
|
383
|
|
|
Total Consolidated
|
|
$
|
6,704
|
|
|
$
|
5,673
|
|
|
$
|
19,166
|
|
|
$
|
14,835
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y Net Sales Growth:
|
|
|
|
|
|
|
|
|
|
North America:
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
7
|
%
|
|
|
31
|
%
|
|
|
16
|
%
|
|
|
29
|
%
|
|
Electronics and other general merchandise
|
|
|
30
|
|
|
|
53
|
|
|
|
41
|
|
|
|
55
|
|
|
Other
|
|
|
33
|
|
|
|
37
|
|
|
|
38
|
|
|
|
24
|
|
|
Total North America
|
|
|
18
|
|
|
|
40
|
|
|
|
26
|
|
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
International:
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
12
|
%
|
|
|
36
|
%
|
|
|
24
|
%
|
|
|
32
|
%
|
|
Electronics and other general merchandise
|
|
|
32
|
|
|
|
68
|
|
|
|
50
|
|
|
|
55
|
|
|
Other
|
|
|
40
|
|
|
|
143
|
|
|
|
65
|
|
|
|
186
|
|
|
Total International
|
|
|
19
|
|
|
|
46
|
|
|
|
33
|
|
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
9
|
%
|
|
|
33
|
%
|
|
|
20
|
%
|
|
|
31
|
%
|
|
Electronics and other general merchandise
|
|
|
31
|
|
|
|
58
|
|
|
|
45
|
|
|
|
55
|
|
|
Other
|
|
|
34
|
|
|
|
47
|
|
|
|
42
|
|
|
|
35
|
|
|
Total Consolidated
|
|
|
18
|
|
|
|
42
|
|
|
|
29
|
|
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y Net Sales Growth Excluding Effect of Exchange Rates:
|
|
|
|
|
|
|
|
|
|
International:
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
22
|
%
|
|
|
26
|
%
|
|
|
22
|
%
|
|
|
25
|
%
|
|
Electronics and other general merchandise
|
|
|
46
|
|
|
|
55
|
|
|
|
49
|
|
|
|
45
|
|
|
Other
|
|
|
58
|
|
|
|
124
|
|
|
|
67
|
|
|
|
165
|
|
|
Total International
|
|
|
31
|
|
|
|
35
|
|
|
|
31
|
|
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
15
|
%
|
|
|
28
|
%
|
|
|
19
|
%
|
|
|
27
|
%
|
|
Electronics and other general merchandise
|
|
|
36
|
|
|
|
54
|
|
|
|
44
|
|
|
|
51
|
|
|
Other
|
|
|
38
|
|
|
|
45
|
|
|
|
42
|
|
|
|
34
|
|
|
Total Consolidated
|
|
|
24
|
|
|
|
37
|
|
|
|
28
|
|
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net Sales Mix:
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
54
|
%
|
|
|
59
|
%
|
|
|
58
|
%
|
|
|
62
|
%
|
|
Electronics and other general merchandise
|
|
|
43
|
|
|
|
39
|
|
|
|
39
|
|
|
|
35
|
|
|
Other
|
|
|
3
|
|
|
|
2
|
|
|
|
3
|
|
|
|
3
|
|
|
AMAZON.COM, INC.
|
|
Consolidated Balance Sheets
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2008
|
|
|
|
2007
|
|
|
ASSETS
|
|
(unaudited)
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
2,769
|
|
|
$
|
2,539
|
|
|
Marketable securities
|
|
|
958
|
|
|
|
573
|
|
|
Inventories
|
|
|
1,399
|
|
|
|
1,200
|
|
|
Accounts receivable, net and other
|
|
|
827
|
|
|
|
705
|
|
|
Deferred tax assets
|
|
|
204
|
|
|
|
147
|
|
|
Total current assets
|
|
|
6,157
|
|
|
|
5,164
|
|
|
Fixed assets, net
|
|
|
854
|
|
|
|
543
|
|
|
Deferred tax assets
|
|
|
145
|
|
|
|
260
|
|
|
Goodwill
|
|
|
438
|
|
|
|
222
|
|
|
Other assets
|
|
|
720
|
|
|
|
296
|
|
|
Total assets
|
|
$
|
8,314
|
|
|
$
|
6,485
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
3,594
|
|
|
$
|
2,795
|
|
|
Accrued expenses and other
|
|
|
1,093
|
|
|
|
902
|
|
|
Current portion of long-term debt
|
|
|
59
|
|
|
|
17
|
|
|
Total current liabilities
|
|
|
4,746
|
|
|
|
3,714
|
|
|
Long-term debt
|
|
|
409
|
|
|
|
1,282
|
|
|
Other long-term liabilities
|
|
|
487
|
|
|
|
292
|
|
|
|
|
|
|
|
|
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 -- 445 and 431
|
|
|
|
|
|
Outstanding shares -- 428 and 416
|
|
|
4
|
|
|
|
4
|
|
|
Treasury stock, at cost
|
|
|
(600
|
)
|
|
|
(500
|
)
|
|
Additional paid-in capital
|
|
|
4,121
|
|
|
|
3,063
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(123
|
)
|
|
|
5
|
|
|
Accumulated deficit
|
|
|
(730
|
)
|
|
|
(1,375
|
)
|
|
Total stockholders' equity
|
|
|
2,672
|
|
|
|
1,197
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
8,314
|
|
|
$
|
6,485
|
|
|
AMAZON.COM, INC.
|
|
Supplemental Financial Information and Business Metrics
|
|
(in millions, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y %
|
|
|
|
Q4 2007
|
|
Q1 2008
|
|
Q2 2008
|
|
Q3 2008
|
|
Q4 2008
|
|
Change
|
|
Cash Flows and Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow -- trailing twelve months (TTM)
|
|
$
|
1,405
|
|
|
$
|
1,039
|
|
|
$
|
1,088
|
|
|
$
|
1,275
|
|
|
$
|
1,697
|
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of fixed assets (incl. internal-use software & website
development) -- TTM
|
|
$
|
224
|
|
|
$
|
251
|
|
|
$
|
272
|
|
|
$
|
305
|
|
|
$
|
333
|
|
|
48
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow (operating cash flow less purchases of fixed assets)
-- TTM
|
|
$
|
1,181
|
|
|
$
|
788
|
|
|
$
|
816
|
|
|
$
|
970
|
|
|
$
|
1,364
|
|
|
16
|
%
|
|
Free cash flow -- TTM Y/Y growth
|
|
|
143
|
%
|
|
|
51
|
%
|
|
|
16
|
%
|
|
|
21
|
%
|
|
|
16
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares and stock-based awards outstanding
|
|
|
435
|
|
|
|
435
|
|
|
|
446
|
|
|
|
448
|
|
|
|
446
|
|
|
3
|
%
|
|
Common shares outstanding
|
|
|
416
|
|
|
|
417
|
|
|
|
426
|
|
|
|
429
|
|
|
|
428
|
|
|
3
|
%
|
|
Stock-based awards outstanding
|
|
|
18
|
|
|
|
18
|
|
|
|
20
|
|
|
|
19
|
|
|
|
18
|
|
|
(1
|
%)
|
|
Stock-based awards outstanding -- % of common shares outstanding
|
|
|
4.4
|
%
|
|
|
4.3
|
%
|
|
|
4.6
|
%
|
|
|
4.5
|
%
|
|
|
4.2
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide (WW) net sales
|
|
$
|
5,673
|
|
|
$
|
4,135
|
|
|
$
|
4,063
|
|
|
$
|
4,264
|
|
|
$
|
6,704
|
|
|
18
|
%
|
|
WW net sales -- Y/Y growth, excluding F/X
|
|
|
37
|
%
|
|
|
31
|
%
|
|
|
35
|
%
|
|
|
28
|
%
|
|
|
24
|
%
|
|
N/A
|
|
|
WW net sales -- TTM
|
|
$
|
14,835
|
|
|
$
|
15,955
|
|
|
$
|
17,133
|
|
|
$
|
18,135
|
|
|
$
|
19,166
|
|
|
29
|
%
|
|
WW net sales -- TTM Y/Y growth, excluding F/X
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
33
|
%
|
|
|
28
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
|
1,170
|
|
|
$
|
956
|
|
|
$
|
967
|
|
|
$
|
999
|
|
|
$
|
1,348
|
|
|
15
|
%
|
|
Gross profit -- Y/Y growth, excluding F/X
|
|
|
33
|
%
|
|
|
28
|
%
|
|
|
32
|
%
|
|
|
29
|
%
|
|
|
20
|
%
|
|
N/A
|
|
|
Gross margin -- % of WW net sales
|
|
|
20.6
|
%
|
|
|
23.1
|
%
|
|
|
23.8
|
%
|
|
|
23.4
|
%
|
|
|
20.1
|
%
|
|
N/A
|
|
|
Gross profit -- TTM
|
|
$
|
3,353
|
|
|
$
|
3,589
|
|
|
$
|
3,855
|
|
|
$
|
4,092
|
|
|
$
|
4,270
|
|
|
27
|
%
|
|
Gross profit -- TTM Y/Y growth, excluding F/X
|
|
|
33
|
%
|
|
|
33
|
%
|
|
|
32
|
%
|
|
|
31
|
%
|
|
|
26
|
%
|
|
N/A
|
|
|
Gross margin -- TTM % of WW net sales
|
|
|
22.6
|
%
|
|
|
22.5
|
%
|
|
|
22.5
|
%
|
|
|
22.6
|
%
|
|
|
22.3
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (1)
|
|
$
|
271
|
|
|
$
|
198
|
|
|
$
|
217
|
|
|
$
|
154
|
|
|
$
|
272
|
|
|
0
|
%
|
|
Operating margin -- % of WW net sales
|
|
|
4.8
|
%
|
|
|
4.8
|
%
|
|
|
5.3
|
%
|
|
|
3.6
|
%
|
|
|
4.1
|
%
|
|
N/A
|
|
|
Operating income -- TTM (1)
|
|
$
|
655
|
|
|
$
|
708
|
|
|
$
|
808
|
|
|
$
|
840
|
|
|
$
|
842
|
|
|
28
|
%
|
|
Operating income -- TTM Y/Y growth, excluding F/X
|
|
|
61
|
%
|
|
|
57
|
%
|
|
|
52
|
%
|
|
|
36
|
%
|
|
|
27
|
%
|
|
N/A
|
|
|
Operating margin -- TTM % of WW net sales
|
|
|
4.4
|
%
|
|
|
4.4
|
%
|
|
|
4.7
|
%
|
|
|
4.6
|
%
|
|
|
4.4
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (1)
|
|
$
|
207
|
|
|
$
|
143
|
|
|
$
|
158
|
|
|
$
|
118
|
|
|
$
|
225
|
|
|
9
|
%
|
|
Net income per diluted share
|
|
$
|
0.48
|
|
|
$
|
0.34
|
|
|
$
|
0.37
|
|
|
$
|
0.27
|
|
|
$
|
0.52
|
|
|
6
|
%
|
|
Net income -- TTM (1)
|
|
$
|
476
|
|
|
$
|
508
|
|
|
$
|
588
|
|
|
$
|
627
|
|
|
$
|
645
|
|
|
36
|
%
|
|
Net income per diluted share -- TTM
|
|
$
|
1.12
|
|
|
$
|
1.20
|
|
|
$
|
1.38
|
|
|
$
|
1.46
|
|
|
$
|
1.49
|
|
|
33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
3,084
|
|
|
$
|
2,126
|
|
|
$
|
2,168
|
|
|
$
|
2,302
|
|
|
$
|
3,631
|
|
|
18
|
%
|
|
Net sales -- Y/Y growth, excluding F/X
|
|
|
39
|
%
|
|
|
31
|
%
|
|
|
35
|
%
|
|
|
29
|
%
|
|
|
18
|
%
|
|
N/A
|
|
|
Net sales -- TTM
|
|
$
|
8,095
|
|
|
$
|
8,598
|
|
|
$
|
9,166
|
|
|
$
|
9,680
|
|
|
$
|
10,228
|
|
|
26
|
%
|
|
Gross profit
|
|
$
|
698
|
|
|
$
|
569
|
|
|
$
|
559
|
|
|
$
|
586
|
|
|
$
|
781
|
|
|
12
|
%
|
|
Gross margin -- % of North America net sales
|
|
|
22.6
|
%
|
|
|
26.7
|
%
|
|
|
25.8
|
%
|
|
|
25.5
|
%
|
|
|
21.5
|
%
|
|
N/A
|
|
|
Gross profit -- TTM
|
|
$
|
2,031
|
|
|
$
|
2,160
|
|
|
$
|
2,286
|
|
|
$
|
2,412
|
|
|
$
|
2,495
|
|
|
23
|
%
|
|
Gross margin -- TTM % of North America net sales
|
|
|
25.1
|
%
|
|
|
25.1
|
%
|
|
|
24.9
|
%
|
|
|
24.9
|
%
|
|
|
24.4
|
%
|
|
N/A
|
|
|
Operating income
|
|
$
|
153
|
|
|
$
|
130
|
|
|
$
|
96
|
|
|
$
|
88
|
|
|
$
|
130
|
|
|
(15
|
%)
|
|
Operating margin -- % of North America net sales
|
|
|
5.0
|
%
|
|
|
6.1
|
%
|
|
|
4.4
|
%
|
|
|
3.8
|
%
|
|
|
3.6
|
%
|
|
N/A
|
|
|
Operating income -- TTM
|
|
$
|
400
|
|
|
$
|
445
|
|
|
$
|
458
|
|
|
$
|
468
|
|
|
$
|
445
|
|
|
11
|
%
|
|
Operating income -- TTM Y/Y growth, excluding F/X
|
|
|
73
|
%
|
|
|
74
|
%
|
|
|
46
|
%
|
|
|
26
|
%
|
|
|
11
|
%
|
|
N/A
|
|
|
Operating margin -- TTM % of North America net sales
|
|
|
4.9
|
%
|
|
|
5.2
|
%
|
|
|
5.0
|
%
|
|
|
4.8
|
%
|
|
|
4.4
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,589
|
|
|
$
|
2,009
|
|
|
$
|
1,895
|
|
|
$
|
1,962
|
|
|
$
|
3,073
|
|
|
19
|
%
|
|
Net sales -- Y/Y growth, excluding F/X
|
|
|
35
|
%
|
|
|
31
|
%
|
|
|
34
|
%
|
|
|
28
|
%
|
|
|
31
|
%
|
|
N/A
|
|
|
Net sales -- TTM
|
|
$
|
6,740
|
|
|
$
|
7,357
|
|
|
$
|
7,967
|
|
|
$
|
8,455
|
|
|
$
|
8,938
|
|
|
33
|
%
|
|
Net sales -- TTM % of WW net sales
|
|
|
45
|
%
|
|
|
46
|
%
|
|
|
47
|
%
|
|
|
47
|
%
|
|
|
47
|
%
|
|
N/A
|
|
|
Gross profit
|
|
$
|
472
|
|
|
$
|
387
|
|
|
$
|
408
|
|
|
$
|
413
|
|
|
$
|
567
|
|
|
20
|
%
|
|
Gross margin -- % of International net sales
|
|
|
18.2
|
%
|
|
|
19.3
|
%
|
|
|
21.5
|
%
|
|
|
21.1
|
%
|
|
|
18.5
|
%
|
|
N/A
|
|
|
Gross profit -- TTM
|
|
$
|
1,322
|
|
|
$
|
1,430
|
|
|
$
|
1,569
|
|
|
$
|
1,680
|
|
|
$
|
1,775
|
|
|
34
|
%
|
|
Gross margin -- TTM % of International net sales
|
|
|
19.6
|
%
|
|
|
19.4
|
%
|
|
|
19.7
|
%
|
|
|
19.9
|
%
|
|
|
19.9
|
%
|
|
N/A
|
|
|
Operating income
|
|
$
|
175
|
|
|
$
|
128
|
|
|
$
|
149
|
|
|
$
|
143
|
|
|
$
|
229
|
|
|
31
|
%
|
|
Operating margin -- % of International net sales
|
|
|
6.8
|
%
|
|
|
6.4
|
%
|
|
|
7.9
|
%
|
|
|
7.3
|
%
|
|
|
7.4
|
%
|
|
N/A
|
|
|
Operating income -- TTM
|
|
$
|
449
|
|
|
$
|
483
|
|
|
$
|
550
|
|
|
$
|
594
|
|
|
$
|
648
|
|
|
44
|
%
|
|
Operating income -- TTM Y/Y growth, excluding F/X
|
|
|
53
|
%
|
|
|
44
|
%
|
|
|
47
|
%
|
|
|
41
|
%
|
|
|
42
|
%
|
|
N/A
|
|
|
Operating margin -- TTM % of International net sales
|
|
|
6.7
|
%
|
|
|
6.6
|
%
|
|
|
6.9
|
%
|
|
|
7.0
|
%
|
|
|
7.3
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
|
Supplemental Financial Information and Business Metrics
|
|
(in millions, except inventory turnover, accounts payable days
and employee data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y %
|
|
|
|
Q4 2007
|
|
Q1 2008
|
|
Q2 2008
|
|
Q3 2008
|
|
Q4 2008
|
|
Change
|
|
Segments (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
$
|
842
|
|
|
$
|
698
|
|
|
$
|
722
|
|
|
$
|
768
|
|
|
$
|
989
|
|
|
17
|
%
|
|
Operating expenses -- TTM
|
|
$
|
2,504
|
|
|
$
|
2,661
|
|
|
$
|
2,847
|
|
|
$
|
3,030
|
|
|
$
|
3,177
|
|
|
27
|
%
|
|
Operating income
|
|
$
|
328
|
|
|
$
|
258
|
|
|
$
|
245
|
|
|
$
|
231
|
|
|
$
|
359
|
|
|
9
|
%
|
|
Operating margin -- % of consolidated sales
|
|
|
5.8
|
%
|
|
|
6.2
|
%
|
|
|
6.0
|
%
|
|
|
5.4
|
%
|
|
|
5.4
|
%
|
|
N/A
|
|
|
Operating income -- TTM
|
|
$
|
849
|
|
|
$
|
928
|
|
|
$
|
1,008
|
|
|
$
|
1,062
|
|
|
$
|
1,093
|
|
|
29
|
%
|
|
Operating income -- TTM Y/Y growth, excluding F/X
|
|
|
64
|
%
|
|
|
59
|
%
|
|
|
49
|
%
|
|
|
35
|
%
|
|
|
28
|
%
|
|
N/A
|
|
|
Operating margin -- TTM % of consolidated net sales
|
|
|
5.7
|
%
|
|
|
5.8
|
%
|
|
|
5.9
|
%
|
|
|
5.9
|
%
|
|
|
5.7
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental North America Segment Net Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
$
|
1,637
|
|
|
$
|
1,205
|
|
|
$
|
1,148
|
|
|
$
|
1,245
|
|
|
$
|
1,751
|
|
|
7
|
%
|
|
Media -- Y/Y growth, excluding F/X
|
|
|
30
|
%
|
|
|
21
|
%
|
|
|
24
|
%
|
|
|
15
|
%
|
|
|
8
|
%
|
|
N/A
|
|
|
Media -- TTM
|
|
$
|
4,630
|
|
|
$
|
4,845
|
|
|
$
|
5,071
|
|
|
$
|
5,235
|
|
|
$
|
5,350
|
|
|
16
|
%
|
|
Electronics and other general merchandise
|
|
$
|
1,336
|
|
|
$
|
826
|
|
|
$
|
920
|
|
|
$
|
950
|
|
|
$
|
1,733
|
|
|
30
|
%
|
|
Electronics and other general merchandise -- Y/Y growth, excluding
F/X
|
|
|
53
|
%
|
|
|
46
|
%
|
|
|
52
|
%
|
|
|
51
|
%
|
|
|
30
|
%
|
|
N/A
|
|
|
Electronics and other general merchandise -- TTM
|
|
$
|
3,139
|
|
|
$
|
3,400
|
|
|
$
|
3,714
|
|
|
$
|
4,033
|
|
|
$
|
4,430
|
|
|
41
|
%
|
|
Electronics and other general merchandise -- TTM % of North America
net sales
|
|
|
39
|
%
|
|
|
40
|
%
|
|
|
41
|
%
|
|
|
42
|
%
|
|
|
43
|
%
|
|
N/A
|
|
|
Other
|
|
$
|
111
|
|
|
$
|
95
|
|
|
$
|
100
|
|
|
$
|
107
|
|
|
$
|
147
|
|
|
33
|
| |
|
|
|
