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SEC Filings

10-K
AMAZON COM INC filed this Form 10-K on 01/30/2013
Entire Document
 


Table of Contents

Equity-Method Investment Activity, Net of Tax

Equity-method investment activity, net of tax, was $(155) million, $(12) million, and $7 million in 2012, 2011, and 2010. Details of the activity are provided below (in millions):

 

     Year Ended December 31,  
     2012     2011     2010  

Equity in earnings (loss) of LivingSocial:

      

Impairment charges recorded by LivingSocial

   $ (170   $ —        $ —     

Gain on existing equity interests, LivingSocial acquisitions

     75        —          —     

Operating and other losses

     (96     (178     (2
  

 

 

   

 

 

   

 

 

 

Total equity in earnings (loss) of LivingSocial

     (191     (178     (2

Other equity-method investment activity:

      

Amazon dilution gains on LivingSocial investment

     37        114        —     

Recovery on sale of equity position

     —          49        —     

Gain on existing equity interests, Amazon acquisitions

     —          6        18   

Other, net

     (1     (3     (9
  

 

 

   

 

 

   

 

 

 

Total other equity-method investment activity

     36        166        9   
  

 

 

   

 

 

   

 

 

 

Equity-method investment activity, net of tax

   $ (155   $ (12   $ 7   
  

 

 

   

 

 

   

 

 

 

Effect of Exchange Rates

The effect on our consolidated statements of operations from changes in exchange rates versus the U.S. Dollar is as follows (in millions, except per share data):

 

     Year Ended December 31, 2012      Year Ended December 31, 2011      Year Ended December 31, 2010  
     At Prior
Year
Rates (1)
     Exchange
Rate
Effect (2)
    As
Reported
     At Prior
Year
Rates (1)
     Exchange
Rate
Effect (2)
     As
Reported
     At Prior
Year
Rates (1)
     Exchange
Rate
Effect (2)
    As
Reported
 

Net sales

   $ 61,947       $ (854   $ 61,093       $ 46,985       $ 1,092       $ 48,077       $ 34,290       $ (86   $ 34,204   

Operating expenses

     61,257         (840     60,417         46,176         1,039         47,215         32,856         (58     32,798   

Income from operations

     690         (14     676         809         53         862         1,434         (28     1,406   

 

(1) Represents the outcome that would have resulted had exchange rates in the reported period been the same as those in effect in the comparable prior year period for operating results.
(2) Represents the increase or decrease in reported amounts resulting from changes in exchange rates from those in effect in the comparable prior year period for operating results.

Non-GAAP Financial Measures

Regulation G, Conditions for Use of Non-GAAP Financial Measures, and other SEC regulations define and prescribe the conditions for use of certain non-GAAP financial information. Our measures of “Free cash flow,” operating expenses with and without stock-based compensation, and the effect of exchange rates on our consolidated statements of operations, meet the definition of non-GAAP financial measures.

Free cash flow is used in addition to and in conjunction with results presented in accordance with GAAP and free cash flow should not be relied upon to the exclusion of GAAP financial measures.

Free cash flow, which we reconcile to “Net cash provided by (used in) operating activities,” is cash flow from operations reduced by “Purchases of property and equipment, including internal-use software and website

 

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