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Amazon.com Announces Fourth Quarter Sales up 22% to $35.7 Billion

January 28, 2016 4:01 PM

SEATTLE--(BUSINESS WIRE)-- Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its fourth quarter ended December 31, 2015.

Operating cash flow increased 74% to $11.9 billion for the trailing twelve months, compared with $6.8 billion for the trailing twelve months ended December 31, 2014. Free cash flow increased to $7.3 billion for the trailing twelve months, compared with $1.9 billion for the trailing twelve months ended December 31, 2014. Free cash flow less lease principal repayments increased to $4.7 billion for the trailing twelve months, compared with $529 million for the trailing twelve months ended December 31, 2014. Free cash flow less finance lease principal repayments and assets acquired under capital leases increased to $2.5 billion for the trailing twelve months, compared with an outflow of $2.2 billion for the trailing twelve months ended December 31, 2014.

Common shares outstanding plus shares underlying stock-based awards totaled 490 million on December 31, 2015, compared with 483 million one year ago.

Fourth Quarter 2015

Net sales increased 22% to $35.7 billion in the fourth quarter, compared with $29.3 billion in fourth quarter 2014. Excluding the $1.2 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 26% compared with fourth quarter 2014.

Operating income increased 88% to $1.1 billion in the fourth quarter, compared with operating income of $591 million in fourth quarter 2014.

Net income was $482 million in the fourth quarter, or $1.00 per diluted share, compared with net income of $214 million, or $0.45 per diluted share, in fourth quarter 2014.

Full Year 2015

Net sales increased 20% to $107.0 billion, compared with $89.0 billion in 2014. Excluding the $5.2 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 26% compared with 2014.

Operating income was $2.2 billion, compared with operating income of $178 million in 2014.

Net income was $596 million, or $1.25 per diluted share, compared with net loss of $241 million, or $0.52 per diluted share, in 2014.

“Twenty years ago, I was driving the packages to the post office myself and hoping we might one day afford a forklift. This year, we pass $100 billion in annual sales and serve 300 million customers,” said Jeff Bezos, founder and CEO of Amazon.com. “And still, measured by the dynamism we see everywhere in the marketplace and by the ever-expanding opportunities we see to invent on behalf of customers, it feels every bit like Day 1.”

Highlights

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of January 28, 2016, 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 and online commerce, and the various factors detailed below.

First Quarter 2016 Guidance

A conference call will be webcast live today at 2:00 p.m. PT/5:00 p.m. ET, and will be available for at least three months at www.amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.

These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains, and develops commercial agreements, acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services, and technologies, system interruptions, government regulation and taxation, and fraud. In addition, the current global economic climate amplifies many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.

Our investor relations website is www.amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases and social media postings, which may contain material information about us, and you may subscribe to be notified of new information posted to this site.

About Amazon

Amazon.com opened on the World Wide Web in July 1995. The company is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire 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.

AMAZON.COM, INC.
Consolidated Statements of Cash Flows
(in millions)
Three Months Ended Twelve Months Ended
December 31, December 31,
2015 2014 2015

2014

(unaudited)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $ 10,709 $ 5,258 $ 14,557 $ 8,658
OPERATING ACTIVITIES:
Net income (loss) 482 214 596 (241 )
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation of property and equipment, including internal-use software and website development, and other amortization, including capitalized content costs 1,752 1,379 6,281 4,746
Stock-based compensation 606 408 2,119 1,497
Other operating expense (income), net 35 36 155 129
Losses (gains) on sales of marketable securities, net 1 — 5 (3 )
Other expense (income), net 79 78 245 62
Deferred income taxes 190 185 81 (316 )
Excess tax benefits from stock-based compensation 93 115 (119 ) (6 )
Changes in operating assets and liabilities:
Inventories (1,343 ) (1,139 ) (2,187 ) (1,193 )
Accounts receivable, net and other (1,178 ) (1,104 ) (1,755 ) (1,039 )
Accounts payable 6,140 5,053 4,294 1,759
Accrued expenses and other 1,836 1,451 913 706
Additions to unearned revenue 2,422 1,378 7,401 4,433
Amortization of previously unearned revenue (2,303 ) (1,339 ) (6,109 ) (3,692 )
Net cash provided by (used in) operating activities 8,812 6,715 11,920 6,842
INVESTING ACTIVITIES:
Purchases of property and equipment, including internal-use software and website development, net (1,309 ) (1,144 ) (4,589 ) (4,893 )
Acquisitions, net of cash acquired, and other (317 ) (53 ) (795 ) (979 )
Sales and maturities of marketable securities 1,135 355 3,025 3,349
Purchases of marketable securities (1,359 ) (1,623 ) (4,091 ) (2,542 )
Net cash provided by (used in) investing activities (1,850 ) (2,465 ) (6,450 ) (5,065 )
FINANCING ACTIVITIES:
Excess tax benefits from stock-based compensation (93 ) (115 ) 119 6
Proceeds from long-term debt and other 93 5,981 353 6,359
Repayments of long-term debt and other (940 ) (183 ) (1,652 ) (513 )
Principal repayments of capital lease obligations (724 ) (406 ) (2,462 ) (1,285 )
Principal repayments of finance lease obligations (26 ) (68 ) (121 ) (135 )
Net cash provided by (used in) financing activities (1,690 ) 5,209 (3,763 ) 4,432
Foreign-currency effect on cash and cash equivalents (91 ) (160 ) (374 ) (310 )
Net increase (decrease) in cash and cash equivalents 5,181 9,299 1,333 5,899
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 15,890 $ 14,557 $ 15,890 $ 14,557
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on long-term debt $ 148 $ 36 $ 325 $ 91
Cash paid for interest on capital and finance lease obligations 44 29 153 86
Cash paid for income taxes (net of refunds) 73 30 273 177
Property and equipment acquired under capital leases 1,332 1,214 4,717 4,008
Property and equipment acquired under build-to-suit leases 163 214 544 920
AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2015 2014 2015 2014
(unaudited)
Net product sales $ 26,618 $ 23,102 $ 79,268 $ 70,080
Net service sales 9,129 6,226 27,738 18,908
Total net sales 35,747 29,328 107,006 88,988
Operating expenses (1):
Cost of sales 24,341 20,671 71,651 62,752
Fulfillment 4,546 3,424 13,410 10,766
Marketing 1,755 1,526 5,254 4,332
Technology and content 3,571 2,635 12,540 9,275
General and administrative 390 442 1,747 1,552
Other operating expense (income), net 36 39 171 133
Total operating expenses 34,639 28,737 104,773 88,810
Income from operations 1,108 591 2,233 178
Interest income 13 8 50 39
Interest expense (115 ) (74 ) (459 ) (210 )
Other income (expense), net (68 ) (96 ) (256 ) (118 )
Total non-operating income (expense) (170 ) (162 ) (665 ) (289 )
Income (loss) before income taxes 938 429 1,568 (111 )
Provision for income taxes (453 ) (205 ) (950 ) (167 )
Equity-method investment activity, net of tax (3 ) (10 ) (22 ) 37
Net income (loss) $ 482 $ 214 $ 596 $ (241 )
Basic earnings per share $ 1.03 $ 0.46 $ 1.28 $ (0.52 )
Diluted earnings per share $ 1.00 $ 0.45 $ 1.25 $ (0.52 )
Weighted-average shares used in computation of earnings per share:
Basic 470 464 467 462

Diluted

481 472 477 462

______________________________

(1) Includes stock-based compensation as follows:
Fulfillment $ 137 $ 97 $ 482 $ 375
Marketing 57 34 190 125
Technology and content 364 226 1,224 804
General and administrative 48 51 223 193
AMAZON.COM, INC.
Consolidated Statements of Comprehensive Income (Loss)
(in millions)

Three Months Ended

Twelve Months Ended
December 31, December 31,
2015 2014 2015 2014
(unaudited)
Net income (loss) $ 482 $ 214 $ 596 $ (241 )
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $7, $(3), $10, and $(3) (40 ) (116 ) (210 ) (325 )
Net change in unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses), net of tax of $1, $1, $(5), and $1 (9 ) 2 (7 ) 2
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $(1), $0, and $(1) 1 (2 ) 5 (3 )
Net unrealized gains (losses) on available-for-sale securities (8 ) — (2 ) (1 )
Total other comprehensive income (loss) (48 ) (116 ) (212 ) (326 )
Comprehensive income (loss) $ 434 $ 98 $ 384 $ (567 )
AMAZON.COM, INC.
Segment Information
(in millions)
Three Months Ended Twelve Months Ended
December 31, December 31,
2015 2014 2015 2014
(unaudited)
North America
Net sales $ 21,501 $ 17,333 $ 63,708 $ 50,834
Segment operating expenses (1) 20,498 16,600 60,957 49,542
Segment operating income (loss) $ 1,003 $ 733 $ 2,751 $ 1,292
International
Net sales $ 11,841 $ 10,575 $ 35,418 $ 33,510
Segment operating expenses (1) 11,781 10,510 35,509 33,654
Segment operating income (loss) $ 60 $ 65 $ (91 ) $ (144 )
AWS
Net sales $ 2,405 $ 1,420 $ 7,880 $ 4,644
Segment operating expenses (1) 1,718 1,180 6,017 3,984
Segment operating income (loss) $ 687 $ 240 $ 1,863 $ 660
Consolidated
Net sales $ 35,747 $ 29,328 $ 107,006 $ 88,988
Segment operating expenses (1) 33,997 28,290 102,483 87,180
Segment operating income (loss) 1,750 1,038 4,523 1,808
Stock-based compensation (606 ) (408 ) (2,119 ) (1,497 )
Other operating income (expense), net (36 ) (39 ) (171 ) (133 )
Income from operations 1,108 591 2,233 178
Total non-operating income (expense) (170 ) (162 ) (665 ) (289 )
Provision for income taxes (453 ) (205 ) (950 ) (167 )
Equity-method investment activity, net of tax (3 ) (10 ) (22 ) 37
Net income (loss) $ 482 $ 214 $ 596 $ (241 )
Segment Highlights:
Y/Y net sales growth:
North America 24 % 21 % 25 % 23 %
International 12 3 6 12
AWS 69 47 70 49
Consolidated 22 15 20 20
Net sales mix:
North America 60 % 59 % 60 % 57 %
International 33 36 33 38
AWS 7 5 7 5
Consolidated 100 % 100 % 100 % 100 %

______________________________

(1) Excludes stock-based compensation and “Other operating expense (income), net,” which are not allocated to segments.

AMAZON.COM, INC.
Supplemental Net Sales Information
(in millions)
Three Months Ended Twelve Months Ended
December 31, December 31,
2015 2014 2015 2014
(unaudited)
Net Sales:
North America
Media $ 3,931 $ 3,544 $ 12,483 $ 11,567
Electronics and other general merchandise 17,325 13,529 50,401 38,517
Other (1) 245 260 824 750
Total North America $ 21,501 $ 17,333 $ 63,708 $ 50,834
International
Media $ 3,292 $ 3,406 $ 10,026 $ 10,938
Electronics and other general merchandise 8,491 7,109 25,196 22,369
Other (1) 58 60 196 203
Total International $ 11,841 $ 10,575 $ 35,418 $ 33,510
Year-over-year Percentage Growth:
North America
Media 11 % 1 % 8 % 7 %
Electronics and other general merchandise 28 27 31 28
Other (6 ) 28 10 22
Total North America 24 21 25 23
International
Media (3 )% (8 )% (8 )% — %
Electronics and other general merchandise 19 10 13 19
Other (3 ) (6 ) (3 ) (3 )
Total International 12 3 6 12
Year-over-year Percentage Growth, excluding the effect of foreign exchange rates:
North America
Media 12 % 1 % 8 % 7 %
Electronics and other general merchandise 28 27 31 29
Other (6 ) 28 10 22
Total North America 24 21 26 23
International
Media 5 % (1 )% 4 % 2 %
Electronics and other general merchandise 31 19 29 21
Other 5 1 10 (3 )
Total International 22 12 21 14

______________________________

(1) Includes sales from non-retail activities, such as certain advertising services and our co-branded credit card agreements.

AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
December 31, 2015 December 31, 2014
ASSETS
Current assets:
Cash and cash equivalents $ 15,890 $ 14,557
Marketable securities 3,918 2,859
Inventories 10,243 8,299
Accounts receivable, net and other 6,423 5,612
Total current assets 36,474 31,327
Property and equipment, net 21,838 16,967
Goodwill 3,759 3,319
Other assets 3,373 2,892
Total assets $ 65,444 $ 54,505
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 20,397 $ 16,459
Accrued expenses and other 10,384 9,807
Unearned revenue 3,118 1,823
Total current liabilities 33,899 28,089
Long-term debt 8,235 8,265
Other long-term liabilities 9,926 7,410
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value:
Authorized shares — 500
Issued and outstanding shares — none — —
Common stock, $0.01 par value:
Authorized shares — 5,000
Issued shares — 494 and 488
Outstanding shares — 471 and 465 5 5
Treasury stock, at cost (1,837 ) (1,837 )
Additional paid-in capital 13,394 11,135
Accumulated other comprehensive loss (723 ) (511 )
Retained earnings 2,545 1,949
Total stockholders’ equity 13,384 10,741
Total liabilities and stockholders’ equity $ 65,444 $ 54,505
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)

Y/Y %
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Change
Cash Flows and Shares
Operating cash flow -- trailing twelve months (TTM) $ 6,842 $ 7,845 $ 8,980 $ 9,823 $ 11,920 74 %
Operating cash flow -- TTM Y/Y growth (decline) 25 % 47 % 69 % 72 % 74 % N/A
Purchases of property and equipment, including internal-use software and website development, net -- TTM $ 4,893 $ 4,684 $ 4,607 $ 4,424 $ 4,589

(6

)%

Principal repayments of capital lease obligations -- TTM $ 1,285 $ 1,537 $ 1,832 $ 2,144 $ 2,462 92 %
Principal repayments of finance lease obligations -- TTM $ 135 $ 132 $ 155 $ 163 $ 121 (11 )%
Property and equipment acquired under capital leases -- TTM $ 4,008 $ 4,246 $ 4,710 $ 4,599 $ 4,717 18 %
Free cash flow -- TTM (1) $ 1,949 $ 3,161 $ 4,373 $ 5,399 $ 7,331 276 %
Invested capital (2) $ 21,021 $ 23,090 $ 25,289 $ 27,425 $ 29,694 41 %
Free cash flow less lease principal repayments -- TTM (3) $ 529 $ 1,492 $ 2,386 $ 3,092 $ 4,748 797 %
Free cash flow less finance lease principal repayments and assets acquired under capital leases -- TTM (4) $ (2,194 ) $ (1,217 ) $ (492 ) $ 637 $ 2,493 N/A
Common shares and stock-based awards outstanding 483 483 488 489 490 1 %
Common shares outstanding 465 466 468 469 471 1 %
Stock-based awards outstanding 18 17 20 20 19 7 %
Stock-based awards outstanding -- % of common shares outstanding 3.8 % 3.8 % 4.4 % 4.3 % 4.1 % N/A
Results of Operations
Worldwide (WW) net sales $ 29,328 $ 22,717 $ 23,185 $ 25,358 $ 35,747 22 %
WW net sales -- Y/Y growth, excluding F/X 18 % 22 % 27 % 30 % 26 % N/A
WW net sales -- TTM $ 88,988 $ 91,963 $ 95,808 $ 100,588 $ 107,006 20 %
WW net sales -- TTM Y/Y growth, excluding F/X 20 % 20 % 22 % 24 % 26 % N/A
Operating income (loss) $ 591 $ 255 $ 464 $ 406 $ 1,108 88 %
Operating income/loss -- Y/Y growth (decline), excluding F/X 22 % 90 % N/A N/A 84 % N/A
Operating margin -- % of WW net sales 2.0 % 1.1 % 2.0 % 1.6 % 3.1 % N/A
Operating income (loss) -- TTM $ 178 $ 287 $ 765 $ 1,715 $ 2,233 N/A
Operating income/loss -- TTM Y/Y growth (decline), excluding F/X (79 )% (56 )% 35 % N/A N/A N/A
Operating margin -- TTM % of WW net sales 0.2 % 0.3 % 0.8 % 1.7 % 2.1 % N/A
Net income (loss) $ 214 $ (57 ) $ 92 $ 79 $ 482 125 %
Net income (loss) per diluted share $ 0.45 $ (0.12 ) $ 0.19 $ 0.17 $ 1.00 121 %
Net income (loss) -- TTM $ (241 ) $ (405 ) $ (188 ) $ 328 $ 596 N/A
Net income (loss) per diluted share -- TTM $ (0.52 ) $ (0.88 ) $ (0.41 ) $ 0.69 $ 1.25 N/A

______________________________

(1) 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.

(2) Average Total Assets minus Current Liabilities (excluding current portion of Long-Term Debt) over five quarter ends.

(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 are 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.

AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions)
(unaudited)
Y/Y %
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Change
Segments
North America Segment:
Net sales $ 17,333 $ 13,406 $ 13,796 $ 15,006 $ 21,501 24 %
Net sales -- Y/Y growth, excluding F/X 21 % 24 % 26 % 29 % 24 % N/A
Net sales -- TTM $ 50,834 $ 53,432 $ 56,233 $ 59,540 $ 63,708 25 %
Operating income (loss) $ 733 $ 517 $ 703 $ 528 $ 1,003 37 %
Operating income/loss -- Y/Y growth (decline), excluding F/X 77 % 111 % N/A 36 % N/A
Operating margin -- % of North America net sales 4.2 % 3.9 % 5.1 % 3.5 % 4.7 % N/A
Operating income (loss) -- TTM $ 1,292 $ 1,520 $ 1,893 $ 2,480 $ 2,751 113 %
Operating margin -- TTM % of North America net sales 2.5 % 2.8 % 3.4 % 4.2 % 4.3 % N/A
International Segment:
Net sales $ 10,575 $ 7,745 $ 7,565 $ 8,267 $ 11,841 12 %
Net sales -- Y/Y growth, excluding F/X 12 % 14 % 22 % 24 % 22 % N/A
Net sales -- TTM $ 33,510 $ 33,371 $ 33,598 $ 34,154 $ 35,418 6 %
Net sales -- TTM % of WW net sales 38 % 36 % 35 % 34 % 33 % N/A
Operating income (loss) $ 65 $ (76 ) $ (19 ) $ (56 ) $ 60 (7 )%
Operating income/loss -- Y/Y growth (decline), excluding F/X N/A N/A N/A 65 % N/A
Operating margin -- % of International net sales 0.6 % (1.0 )% (0.2 )% (0.7 )% 0.5 % N/A
Operating income (loss) -- TTM $ (144 ) $ (188 ) $ (205 ) $ (86 ) $ (91 ) (36 )%
Operating margin -- TTM % of International net sales (0.4 )% (0.6 )% (0.6 )% (0.3 )% (0.3 )% N/A
AWS Segment:
Net sales $ 1,420 $ 1,566 $ 1,824 $ 2,085 $ 2,405 69 %
Net sales -- Y/Y growth, excluding F/X 47 % 49 % 81 % 78 % 69 % N/A
Net sales -- TTM $ 4,644 $ 5,160 $ 5,977 $ 6,894 $ 7,880 70 %
Net sales -- TTM % of WW net sales 5 % 6 % 6 % 7 % 7 % N/A
Operating income (loss) $ 240 $ 265 $ 391 $ 521 $ 687 186 %
Operating income/loss -- Y/Y growth (decline), excluding F/X (13 )% 314 % 353 % 161 % N/A
Operating margin -- % of AWS net sales 16.9 % 16.9 % 21.4 % 25.0 % 28.5 % N/A
Operating income (loss) -- TTM $ 660 $ 680 $ 993 $ 1,417 $ 1,863 182 %
Operating margin -- TTM % of AWS net sales 14.2 % 13.2 % 16.6 % 20.6 % 23.6 % N/A
Consolidated Segments:
Operating expenses (5) $ 28,290 $ 22,011 $ 22,110 $ 24,365 $ 33,997 20 %
Operating expenses -- TTM (5) $ 87,180 $ 89,951 $ 93,126 $ 96,777 $ 102,483 18 %
Operating income (loss) $ 1,038 $ 706 $ 1,075 $ 993 $ 1,750 69 %
Operating income/loss -- Y/Y growth (decline), excluding F/X 22 % 45 % 168 % N/A 67 % N/A
Operating margin -- % of Consolidated sales 3.5 % 3.1 % 4.6 % 3.9 % 4.9 % N/A
Operating income (loss) -- TTM $ 1,808 $ 2,012 $ 2,682 $ 3,811 $ 4,523 150 %
Operating income/loss -- TTM Y/Y growth (decline), excluding F/X (10 )% (1 )% 34 % 134 % 149 % N/A
Operating margin -- TTM % of Consolidated net sales 2.0 % 2.2 % 2.8 % 3.8 % 4.2 % N/A

______________________________

(5) Represents cost of sales, fulfillment, marketing, technology and content, and general and administrative operating expenses, excluding stock-based compensation.

AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except inventory turnover, accounts payable days and employee data)
(unaudited)
Y/Y %
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Change
Supplemental
Supplemental North America Segment Net Sales:
Media $ 3,544 $ 2,969 $ 2,620 $ 2,963 $ 3,931 11 %
Media -- Y/Y growth, excluding F/X 1 % 5 % 7 % 9 % 12 % N/A
Media -- TTM $ 11,567 $ 11,711 $ 11,867 $ 12,096 $ 12,483 8 %
Electronics and other general merchandise $ 13,529 $ 10,250 $ 10,987 $ 11,840 $ 17,325 28 %
Electronics and other general merchandise -- Y/Y growth, excluding F/X 27 % 31 % 32 % 35 % 28 % N/A
Electronics and other general merchandise -- TTM $ 38,517 $ 40,938 $ 43,559 $ 46,606 $ 50,401 31 %
Electronics and other general merchandise -- TTM % of North America net sales 76 % 77 % 77 % 78 % 79 % N/A
Other $ 260 $ 187 $ 189 $ 203 $ 245 (6 )%
Supplemental International Segment Net Sales:
Media $ 3,406 $ 2,320 $ 2,094 $ 2,320 $ 3,292 (3 )%
Media -- Y/Y growth, excluding F/X (1 )% 2 % 3 % 6 % 5 % N/A
Media -- TTM $ 10,938 $ 10,615 $ 10,329 $ 10,140 $ 10,026 (8 )%
Electronics and other general merchandise $ 7,109 $ 5,378 $ 5,425 $ 5,901 $ 8,491 19 %
Electronics and other general merchandise -- Y/Y growth, excluding F/X 19 % 21 % 31 % 32 % 31 % N/A
Electronics and other general merchandise -- TTM $ 22,369 $ 22,559 $ 23,072 $ 23,814 $ 25,196 13 %
Electronics and other general merchandise -- TTM % of International net sales 67 % 68 % 69 % 70 % 71 % N/A
Other $ 60 $ 47 $ 46 $ 46 $ 58 (3 )%
Balance Sheet
Cash and marketable securities -- ending $ 17,416 $ 13,781 $ 14,001 $ 14,428 $ 19,808 14 %
Inventory, net -- ending $ 8,299 $ 7,369 $ 7,470 $ 8,981 $ 10,243 23 %
Inventory turnover, average -- TTM 8.6 8.8 8.9 8.6 8.5 (2 )%
Property and equipment, net -- ending $ 16,967 $ 17,736 $ 19,479 $ 20,636 $ 21,838 29 %
Accounts payable -- ending $ 16,459 $ 11,917 $ 12,391 $ 14,437 $ 20,397 24 %
Accounts payable days -- ending 73 70 74 79 77 5 %
Other
WW shipping revenue $ 1,701 $ 1,299 $ 1,399 $ 1,494 $ 2,328 37 %
WW shipping revenue - % of net sales (6) 6.1 % 6.1 % 6.6 % 6.4 % 7.0 % N/A
WW shipping costs $ 3,049 $ 2,309 $ 2,340 $ 2,720 $ 4,170 37 %
WW shipping costs - % of net sales (6) 10.9 % 10.9 % 11.0 % 11.7 % 12.5 % N/A
WW net shipping costs $ 1,348 $ 1,010 $ 941 $ 1,226 $ 1,842 37 %
WW net shipping costs -- % of WW net sales (6) 4.8 % 4.8 % 4.4 % 5.3 % 5.5 % N/A
WW paid units -- Y/Y growth 20 % 20 % 22 % 26 % 26 % N/A
WW seller unit mix -- % of WW paid units 43 % 44 % 45 % 46 % 47 % N/A
Employees (full-time and part-time; excludes contractors & temporary personnel) 154,100 165,000 183,100 222,400 230,800 50 %

______________________________

(6) Includes North America and International segment net sales.

Amazon.com, Inc.Certain Definitions

Customer Accounts

Seller Accounts

AWS Customers

Units

Amazon.com, Inc.

Investor Relations

Phil Hardin, 206-266-2171

www.amazon.com/ir

or

Public Relations

Ty Rogers, 206-266-7180

www.amazon.com/pr

Source: Amazon.com, Inc.

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