Upgrade to SI Premium - Free Trial

Amazon.com Announces First Quarter Sales up 28% to $29.1 Billion

April 28, 2016 4:02 PM

SEATTLE--(BUSINESS WIRE)-- Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its first quarter ended March 31, 2016.

Operating cash flow increased 44% to $11.3 billion for the trailing twelve months, compared with $7.8 billion for the trailing twelve months ended March 31, 2015. Free cash flow increased to $6.4 billion for the trailing twelve months, compared with $3.2 billion for the trailing twelve months ended March 31, 2015. Free cash flow less lease principal repayments increased to $3.5 billion for the trailing twelve months, compared with $1.5 billion for the trailing twelve months ended March 31, 2015. Free cash flow less finance lease principal repayments and assets acquired under capital leases increased to $1.6 billion for the trailing twelve months, compared with an outflow of $1.2 billion for the trailing twelve months ended March 31, 2015.

Common shares outstanding plus shares underlying stock-based awards totaled 490 million on March 31, 2016, compared with 483 million one year ago.

Net sales increased 28% to $29.1 billion in the first quarter, compared with $22.7 billion in first quarter 2015. Excluding the $210 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 29% compared to first quarter 2015.

Operating income was $1.1 billion in the first quarter, compared with $255 million in first quarter 2015.

Net income was $513 million in the first quarter, or $1.07 per diluted share, compared with net loss of $57 million, or $0.12 per diluted share, in first quarter 2015.

“Amazon devices are the top selling products on Amazon, and customers purchased more than twice as many Fire tablets than first quarter last year,” said Jeff Bezos, founder and CEO of Amazon.com. “Earlier this week, the $39 Fire TV Stick became the first product ever — from any manufacturer — to pass 100,000 customer reviews, including over 62,000 5 star reviews, also more than any other product ever sold on Amazon. Echo too is off to an incredible start, and we can’t yet manage to keep it in stock despite all efforts. We’re building premium products at non-premium prices, and we’re thrilled so many customers are responding to our approach.”

Highlights

Financial Guidance

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

Second 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 and services 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)
(unaudited)
Three Months Ended March 31, Twelve Months Ended March 31,
2016 2015 2016 2015
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $ 15,890 $ 14,557 $ 10,237 $ 5,074
OPERATING ACTIVITIES:
Net income (loss) 513 (57 ) 1,166 (405 )
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 1,827 1,426 6,682 5,162
Stock-based compensation 544 407 2,257 1,582
Other operating expense (income), net 43 44 155 139
Losses (gains) on sales of marketable securities, net 2 1 6 (3 )
Other expense (income), net (52 ) 91 102 203
Deferred income taxes 11 (2 ) 94 (136 )
Excess tax benefits from stock-based compensation (207 ) (22 ) (305 ) 94
Changes in operating assets and liabilities:
Inventories 769 721 (2,138 ) (1,172 )
Accounts receivable, net and other 412 441 (1,784 ) (1,324 )
Accounts payable (5,770 ) (4,249 ) 2,773 2,184
Accrued expenses and other (956 ) (940 ) 893 500
Additions to unearned revenue 2,814 1,803 8,412 5,144
Amortization of previously unearned revenue (2,110 ) (1,163 ) (7,055 ) (4,123 )
Net cash provided by (used in) operating activities (2,160 ) (1,499 ) 11,258 7,845
INVESTING ACTIVITIES:
Purchases of property and equipment, including internal-use software and website development, net (1,179 ) (871 ) (4,897 ) (4,684 )
Acquisitions, net of cash acquired, and other (16 ) (365 ) (446 ) (1,345 )
Sales and maturities of marketable securities 1,138 375 3,788 3,131
Purchases of marketable securities (636 ) (986 ) (3,741 ) (3,091 )
Net cash provided by (used in) investing activities (693 ) (1,847 ) (5,296 ) (5,989 )
FINANCING ACTIVITIES:
Excess tax benefits from stock-based compensation 207 22 305 (94 )
Proceeds from long-term debt and other 9 183 179 6,478
Repayments of long-term debt and other (175 ) (316 ) (1,512 ) (760 )
Principal repayments of capital lease obligations (801 ) (502 ) (2,761 ) (1,537 )
Principal repayments of finance lease obligations (29 ) (39 ) (111 ) (132 )
Net cash provided by (used in) financing activities (789 ) (652 ) (3,900 ) 3,955
Foreign-currency effect on cash and cash equivalents 222 (322 ) 171 (648 )
Net increase (decrease) in cash and cash equivalents (3,420 ) (4,320 ) 2,233 5,163
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 12,470 $ 10,237 $ 12,470 $ 10,237
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on long-term debt $ 2 $ 17 $ 310 $ 90
Cash paid for interest on capital and finance lease obligations 47 32 168 102
Cash paid for income taxes (net of refunds) 139 55 357 194
Property and equipment acquired under capital leases 875 954 4,638 4,246
Property and equipment acquired under build-to-suit leases 351 103 793 897
AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Ended March 31,
2016 2015
Net product sales $ 20,581 $ 17,084
Net service sales 8,547 5,633
Total net sales 29,128 22,717
Operating expenses (1):
Cost of sales 18,866 15,395
Fulfillment 3,687 2,759
Marketing 1,436 1,083
Technology and content 3,526 2,754
General and administrative 497 427
Other operating expense (income), net 45 44
Total operating expenses 28,057 22,462
Operating income 1,071 255
Interest income 21 11
Interest expense (117 ) (115 )
Other income (expense), net 81 (130 )
Total non-operating income (expense) (15 ) (234 )
Income (loss) before income taxes 1,056 21
Provision for income taxes (475 ) (71 )
Equity-method investment activity, net of tax (68 ) (7 )
Net income (loss) $ 513 $ (57 )
Basic earnings per share $ 1.09 $ (0.12 )
Diluted earnings per share $ 1.07 $ (0.12 )
Weighted-average shares used in computation of earnings per share:
Basic 471 465
Diluted 481 465
_____________
(1) Includes stock-based compensation as follows:
Fulfillment $ 116 $ 90
Marketing 56 35
Technology and content 317 233
General and administrative 55 49
AMAZON.COM, INC.
Consolidated Statements of Comprehensive Income (Loss)
(in millions)
(unaudited)
Three Months Ended March 31,
2016 2015
Net income (loss) $ 513 $ (57 )
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $(24) and $(1) 102 (243 )
Net change in unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses), net of tax of $0 and $0 6 1
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $(1) and $0 1 1
Net unrealized gains (losses) on available-for-sale securities 7 2
Total other comprehensive income (loss) 109 (241 )
Comprehensive income (loss) $ 622 $ (298 )
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
Three Months Ended March 31,
2016 2015
North America
Net sales $ 16,996 $ 13,406
Segment operating expenses 16,072 12,889
Segment operating income (loss) before stock-based compensation and other 924 517
Stock-based compensation and other 336 263
Operating income (loss) $ 588 $ 254
International
Net sales $ 9,566 $ 7,745
Segment operating expenses 9,546 7,821
Segment operating income (loss) before stock-based compensation and other 20 (76 )
Stock-based compensation and other 141 118
Operating income (loss) $ (121 ) $ (194 )
AWS
Net sales $ 2,566 $ 1,566
Segment operating expenses 1,850 1,301
Segment operating income (loss) before stock-based compensation and other 716 265
Stock-based compensation and other 112 70
Operating income (loss) $ 604 $ 195
Consolidated
Net sales $ 29,128 $ 22,717
Segment operating expenses 27,468 22,011
Segment operating income (loss) before stock-based compensation and other 1,660 706
Stock-based compensation and other 589 451
Operating income (loss) 1,071 255
Total non-operating income (expense) (15 ) (234 )
Provision for income taxes (475 ) (71 )
Equity-method investment activity, net of tax (68 ) (7 )
Net income (loss) $ 513 $ (57 )
Segment Highlights:
Y/Y net sales growth:
North America 27 % 24 %
International 24 (2 )
AWS 64 49
Consolidated 28 15
Net sales mix:
North America 58 % 59 %
International 33 34
AWS 9 7
Consolidated 100 % 100 %
AMAZON.COM, INC.
Supplemental Net Sales Information
(in millions)
(unaudited)
Three Months Ended March 31,
2016 2015
Net Sales:
North America
Media $ 3,208 $ 2,969
Electronics and other general merchandise 13,511 10,250
Other (1) 277 187
Total North America $ 16,996 $ 13,406
International
Media $ 2,480 $ 2,320
Electronics and other general merchandise 7,034 5,378
Other (1) 52 47
Total International $ 9,566 $ 7,745
Year-over-year Percentage Growth:
North America
Media 8 % 5 %
Electronics and other general merchandise 32 31
Other 48 22
Total North America 27 24
International
Media 7 % (12 )%
Electronics and other general merchandise 31 4
Other 12 (12 )
Total International 24 (2 )
Year-over-year Percentage Growth, excluding the effect of foreign exchange rates:
North America
Media 8 % 5 %
Electronics and other general merchandise 32 31
Other 48 22
Total North America 27 24
International
Media 9 % 2 %
Electronics and other general merchandise 33 21
Other 15 2
Total International 26 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)
March 31, 2016 December 31, 2015
(unaudited)

ASSETS

Current assets:
Cash and cash equivalents $ 12,470 $ 15,890
Marketable securities 3,389 3,918
Inventories 9,582 10,243
Accounts receivable, net and other 5,072 5,654
Total current assets 30,513 35,705
Property and equipment, net 23,308 21,838
Goodwill 3,785 3,759
Other assets 3,522 3,445
Total assets $ 61,128 $ 64,747

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable $ 14,990 $ 20,397
Accrued expenses and other 9,431 10,372
Unearned revenue 3,766 3,118
Total current liabilities 28,187 33,887
Long-term debt 8,219 8,227
Other long-term liabilities 9,966 9,249
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 — 495 and 494
Outstanding shares — 472 and 471 5 5
Treasury stock, at cost (1,837 ) (1,837 )
Additional paid-in capital 14,144 13,394
Accumulated other comprehensive loss (614 ) (723 )
Retained earnings 3,058 2,545
Total stockholders’ equity 14,756 13,384
Total liabilities and stockholders’ equity $ 61,128 $ 64,747
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Y/Y %

Change

Cash Flows and Shares
Operating cash flow -- trailing twelve months (TTM) $ 7,845 $ 8,980 $ 9,823 $ 11,920 $ 11,258 44 %
Operating cash flow -- TTM Y/Y growth (decline) 47 % 69 % 72 % 74 % 44 % N/A
Purchases of property and equipment, including internal-use software and website development, net -- TTM $ 4,684 $ 4,607 $ 4,424 $ 4,589 $ 4,897 5 %
Principal repayments of capital lease obligations -- TTM $ 1,537 $ 1,832 $ 2,144 $ 2,462 $ 2,761 80 %
Principal repayments of finance lease obligations -- TTM $ 132 $ 155 $ 163 $ 121 $ 111 (16 )%
Property and equipment acquired under capital leases -- TTM $ 4,246 $ 4,710 $ 4,599 $ 4,717 $ 4,638 9 %
Free cash flow -- TTM (1) $ 3,161 $ 4,373 $ 5,399 $ 7,331 $ 6,361 101 %
Free cash flow less lease principal repayments -- TTM (2) $ 1,492 $ 2,386 $ 3,092 $ 4,748 $ 3,489 134 %
Free cash flow less finance lease principal repayments and assets acquired under capital leases -- TTM (3) $ (1,217 ) $ (492 ) $ 637 $ 2,493 $ 1,612 N/A
Invested capital (4) 24,040 26,478 28,860 31,393 32,824 37 %
Common shares and stock-based awards outstanding 483 488 489 490 490 1 %
Common shares outstanding 466 468 469 471 472 1 %
Stock-based awards outstanding 17 20 20 19 18 4 %
Stock-based awards outstanding -- % of common shares outstanding 3.8 % 4.4 % 4.3 % 4.1 % 3.9 % N/A
Results of Operations
Worldwide (WW) net sales $ 22,717 $ 23,185 $ 25,358 $ 35,747 $ 29,128 28 %
WW net sales -- Y/Y growth, excluding F/X 22 % 27 % 30 % 26 % 29 % N/A
WW net sales -- TTM $ 91,963 $ 95,808 $ 100,588 $ 107,006 $ 113,418 23 %
WW net sales -- TTM Y/Y growth (decline), excluding F/X 20 % 22 % 24 % 26 % 28 % N/A
Operating income (loss) $ 255 $ 464 $ 406 $ 1,108 $ 1,071 320 %
Operating income/loss -- Y/Y growth (decline), excluding F/X 90 % N/A N/A 84 % 300 % N/A
Operating margin -- % of WW net sales 1.1 % 2.0 % 1.6 % 3.1 % 3.7 % N/A
Operating income (loss) -- TTM $ 287 $ 765 $ 1,715 $ 2,233 $ 3,049 964 %
Operating income/loss -- TTM Y/Y growth (decline), excluding F/X (56 )% 35 % N/A N/A 933 % N/A
Operating margin -- TTM % of WW net sales 0.3 % 0.8 % 1.7 % 2.1 % 2.7 % N/A
Net income (loss) $ (57 ) $ 92 $ 79 $ 482 $ 513 N/A
Net income (loss) per diluted share $ (0.12 ) $ 0.19 $ 0.17 $ 1.00 $ 1.07 N/A
Net income (loss) -- TTM $ (405 ) $ (188 ) $ 328 $ 596 $ 1,166 N/A
Net income (loss) per diluted share -- TTM $ (0.88 ) $ (0.41 ) $ 0.69 $ 1.25 $ 2.43 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) 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.

(3) 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.

(4) Average Total Assets minus Current Liabilities (excluding current portion of Long-Term Debt and current portion of capital lease obligations and finance lease obligations) over five quarter ends.

AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions)
(unaudited)
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Y/Y %Change
Segments
North America Segment:
Net sales $ 13,406 $ 13,796 $ 15,006 $ 21,501 $ 16,996 27 %
Net sales -- Y/Y growth, excluding F/X 24 % 26 % 29 % 24 % 27 % N/A
Net sales -- TTM $ 53,432 $ 56,233 $ 59,540 $ 63,708 $ 67,299 26 %
Segment operating income (loss) before stock-based compensation and other:
Operating income (loss) $ 517 $ 703 $ 528 $ 1,003 $ 924 79 %
Operating income/loss -- Y/Y growth (decline), excluding F/X 77 % 111 % N/A 36 % 78 % N/A
Operating margin -- % of North America net sales 3.9 % 5.1 % 3.5 % 4.7 % 5.4 % N/A
Operating income (loss) -- TTM $ 1,520 $ 1,893 $ 2,480 $ 2,751 $ 3,157 108 %
Operating margin -- TTM % of North America net sales 2.8 % 3.4 % 4.2 % 4.3 % 4.7 % N/A
Operating income (loss):
Operating income (loss) $ 254 $ 348 $ 186 $ 636 $ 588 131 %
Operating income/loss -- Y/Y growth (decline), excluding F/X 129 % N/A
Operating margin -- % of North America net sales 1.9 % 2.5 % 1.2 % 3.0 % 3.5 % N/A
Operating income (loss) -- TTM $ 1,425 $ 1,759 232 %
Operating margin -- TTM % of North America net sales 2.2 % 2.6 % N/A
International Segment:
Net sales $ 7,745 $ 7,565 $ 8,267 $ 11,841 $ 9,566 24 %
Net sales -- Y/Y growth, excluding F/X 14 % 22 % 24 % 22 % 26 % N/A
Net sales -- TTM $ 33,371 $ 33,598 $ 34,154 $ 35,418 $ 37,239 12 %
Segment operating income (loss) before stock-based compensation and other:
Operating income (loss) $ (76 ) $ (19 ) $ (56 ) $ 60 $ 20 N/A
Operating income/loss -- Y/Y growth (decline), excluding F/X N/A N/A N/A 65 % N/A N/A
Operating margin -- % of International net sales (1.0 )% (0.2 )% (0.7 )% 0.5 % 0.2 % N/A
Operating income (loss) -- TTM $ (188 ) $ (205 ) $ (86 ) $ (91 ) $ 6 N/A
Operating margin -- TTM % of International net sales (0.6 )% (0.6 )% (0.3 )% (0.3 )% — % N/A
Operating income (loss):
Operating income (loss) $ (194 ) $ (189 ) $ (208 ) $ (108 ) $ (121 ) (38 )%
Operating income/loss -- Y/Y growth (decline), excluding F/X (27 )% N/A
Operating margin -- % of International net sales (2.5 )% (2.5 )% (2.5 )% (0.9 )% (1.3 )% N/A
Operating income (loss) -- TTM $ (699 ) $ (626 ) (10 )%
Operating margin -- TTM % of International net sales (2.0 )% (1.7 )% N/A
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions)
(unaudited)
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Y/Y %Change
Segments (continued)
AWS Segment:
Net sales $ 1,566 $ 1,824 $ 2,085 $ 2,405 $ 2,566 64 %
Net sales -- Y/Y growth, excluding F/X 49 % 81 % 78 % 69 % 64 % N/A
Net sales -- TTM $ 5,160 $ 5,977 $ 6,894 $ 7,880 $ 8,880 72 %
Net sales -- TTM % of WW net sales 6 % 6 % 7 % 7 % 8 % N/A
Segment operating income (loss) before stock-based compensation and other:
Operating income (loss) $ 265 $ 391 $ 521 $ 687 $ 716 170 %
Operating income/loss -- Y/Y growth (decline), excluding F/X (13 )% 314 % 353 % 161 % 161 % N/A
Operating margin -- % of AWS net sales 16.9 % 21.4 % 25.0 % 28.5 % 27.9 % N/A
Operating income (loss) -- TTM $ 680 $ 993 $ 1,417 $ 1,863 $ 2,315 241 %
Operating margin -- TTM % of AWS net sales 13.2 % 16.6 % 20.6 % 23.6 % 26.1 % N/A
Operating income (loss):
Operating income (loss) $ 195 $ 305 $ 428 $ 580 $ 604 210 %
Operating income/loss -- Y/Y growth (decline), excluding F/X 198 % N/A
Operating margin -- % of AWS net sales 12.4 % 16.7 % 20.5 % 24.1 % 23.5 % N/A
Operating income (loss) -- TTM $ 1,507 $ 1,916 325 %
Operating margin -- TTM % of AWS net sales 19.1 % 21.6 % N/A
Consolidated Segments Before Stock-Based Compensation and Other:
Operating income (loss) $ 706 $ 1,075 $ 993 $ 1,750 $ 1,660 135 %
Operating income/loss -- Y/Y growth (decline), excluding F/X 45 % 168 % N/A 67 % 128 % N/A
Operating margin -- % of Consolidated net sales 3.1 % 4.6 % 3.9 % 4.9 % 5.7 % N/A
Operating income (loss) -- TTM $ 2,012 $ 2,682 $ 3,811 $ 4,523 $ 5,478 172 %
Operating margin -- TTM % of Consolidated net sales 2.2 % 2.8 % 3.8 % 4.2 % 4.8 % N/A
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except inventory turnover, accounts payable days and employee data)
(unaudited)
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Y/Y %

Change

Supplemental
Supplemental North America Segment Net Sales:
Media $ 2,969 $ 2,620 $ 2,963 $ 3,931 $ 3,208 8 %
Media -- Y/Y growth, excluding F/X 5 % 7 % 9 % 12 % 8 % N/A
Media -- TTM $ 11,711 $ 11,867 $ 12,096 $ 12,483 $ 12,722 9 %
Electronics and other general merchandise $ 10,250 $ 10,987 $ 11,840 $ 17,325 $ 13,511 32 %
Electronics and other general merchandise -- Y/Y growth, excluding F/X 31 % 32 % 35 % 28 % 32 % N/A
Electronics and other general merchandise -- TTM $ 40,938 $ 43,559 $ 46,606 $ 50,401 $ 53,663 31 %
Electronics and other general merchandise -- TTM % of North America net sales 77 % 77 % 78 % 79 % 80 % N/A
Other $ 187 $ 189 $ 203 $ 245 $ 277 48 %
Supplemental International Segment Net Sales:
Media $ 2,320 $ 2,094 $ 2,320 $ 3,292 $ 2,480 7 %
Media -- Y/Y growth, excluding F/X 2 % 3 % 6 % 5 % 9 % N/A
Media -- TTM $ 10,615 $ 10,329 $ 10,140 $ 10,026 $ 10,186 (4 )%
Electronics and other general merchandise $ 5,378 $ 5,425 $ 5,901 $ 8,491 $ 7,034 31 %
Electronics and other general merchandise -- Y/Y growth, excluding F/X 21 % 31 % 32 % 31 % 33 % N/A
Electronics and other general merchandise -- TTM $ 22,559 $ 23,072 $ 23,814 $ 25,196 $ 26,851 19 %
Electronics and other general merchandise -- TTM % of International net sales 68 % 69 % 70 % 71 % 72 % N/A
Other $ 47 $ 46 $ 46 $ 58 $ 52 12 %
Balance Sheet
Cash and marketable securities -- ending $ 13,781 $ 14,001 $ 14,428 $ 19,808 $ 15,859 15 %
Inventory, net -- ending $ 7,369 $ 7,470 $ 8,981 $ 10,243 $ 9,582 30 %
Inventory turnover, average -- TTM 8.8 8.9 8.6 8.5 8.6 (2 )%
Property and equipment, net -- ending $ 17,736 $ 19,479 $ 20,636 $ 21,838 $ 23,308 31 %
Accounts payable -- ending $ 11,917 $ 12,391 $ 14,437 $ 20,397 $ 14,990 26 %
Accounts payable days -- ending 70 74 79 77 72 4 %
Other
WW shipping revenue $ 1,299 $ 1,399 $ 1,494 $ 2,328 $ 1,820 40 %
WW shipping revenue -- Y/Y growth 53 % 57 % 43 % 37 % 40 % N/A
WW shipping costs $ 2,309 $ 2,340 $ 2,720 $ 4,170 $ 3,275 42 %
WW shipping costs -- Y/Y growth 26 % 29 % 35 % 37 % 42 % N/A
WW net shipping costs $ 1,010 $ 941 $ 1,226 $ 1,842 $ 1,455 44 %
WW net shipping costs -- Y/Y growth 3 % 2 % 26 % 37 % 44 % N/A
WW paid units -- Y/Y growth 20 % 22 % 26 % 26 % 27 % N/A
WW seller unit mix -- % of WW paid units 44 % 45 % 46 % 47 % 48 % N/A
Employees (full-time and part-time; excludes contractors & temporary personnel) 165,000 183,100 222,400 230,800 245,200 49 %
AMAZON.COM, INC.
Supplemental Segment Financial Information

In Q1 2016, we began allocating stock-based compensation and “Other operating expense (income), net” to our segment results. In our segment results, these amounts are combined and titled “Stock-based compensation and other.” These revised segment results reflect the way the Company evaluates its business performance and manages its operations.

Two years of historical financial information on reportable segments and reconciliation to consolidated net income (loss) using the new segment presentation is as follows (in millions):

Year Ended Three Months Ended Year Ended
December 31, 2015 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014
North America
Net sales $ 63,708 $ 21,501 $ 15,006 $ 13,796 $ 13,406 $ 50,834
Segment operating expenses 60,957 20,498 14,478 13,093 12,889 49,542
Segment operating income (loss) before stock-based compensation and other 2,751 1,003 528 703 517 1,292
Stock-based compensation and other 1,326 367 342 355 263 932
Operating income (loss) $ 1,425 $ 636 $ 186 $ 348 $ 254 $ 360
International
Net sales $ 35,418 $ 11,841 $ 8,267 $ 7,565 $ 7,745 $ 33,510
Segment operating expenses 35,509 11,781 8,323 7,584 7,821 33,654
Segment operating income (loss) before stock-based compensation and other (91 ) 60 (56 ) (19 ) (76 ) (144 )
Stock-based compensation and other 608 168 152 170 118 496
Operating income (loss) $ (699 ) $ (108 ) $ (208 ) $ (189 ) $ (194 ) $ (640 )
AWS
Net sales $ 7,880 $ 2,405 $ 2,085 $ 1,824 $ 1,566 $ 4,644
Segment operating expenses 6,017 1,718 1,564 1,433 1,301 3,984
Segment operating income (loss) before stock-based compensation and other 1,863 687 521 391 265 660
Stock-based compensation and other 356 107 93 86 70 202
Operating income (loss) $ 1,507 $ 580 $ 428 $ 305 $ 195 $ 458
Consolidated
Net sales $ 107,006 $ 35,747 $ 25,358 $ 23,185 $ 22,717 $ 88,988
Segment operating expenses 102,483 33,997 24,365 22,110 22,011 87,180
Segment operating income (loss) before stock-based compensation and other 4,523 1,750 993 1,075 706 1,808
Stock-based compensation and other 2,290 642 587 611 451 1,630
Operating income (loss) 2,233 1,108 406 464 255 178
Total non-operating income (expense) (665 ) (170 ) (159 ) (102 ) (234 ) (289 )
Provision for income taxes (950 ) (453 ) (161 ) (266 ) (71 ) (167 )
Equity-method investment activity, net of tax (22 ) (3 ) (7 ) (4 ) (7 ) 37
Net income (loss) $ 596 $ 482 $ 79 $ 92 $ (57 ) $ (241 )

Amazon.com, Inc.

Certain Definitions

Customer Accounts

Seller Accounts

AWS Customers

Units

Amazon.com Investor Relations

Darin Manney, 206-266-2171

www.amazon.com/ir

or

Amazon.com Public Relations

Ty Rogers, 206-266-7180

www.amazon.com/pr

Source: Amazon.com, Inc.

Categories

Press Releases

Next Articles