Amazon.com 2001 Annual Report Download - page 45

The following are our contractual commitments associated with our operational restructuring, debt
obligations, lease obligations, and our marketing agreements (in thousands):
Year Ending December 31,
2002 2003 2004 2005 2006 Thereafter Total
Restructuring-related commitments:
Leases .................... $ 35,578 $ 5,476 $ 2,016 $ 1,983 $ 2,068 $ 6,066 $ 53,187
Other ..................... 5,220 3,031 — — — — 8,251
Restructuring-related commitments . 40,798 8,507 2,016 1,983 2,068 6,066 61,438
Other Commitments:
Debt principal and other ...... 4,775 4,462 2,004 74 — 2,123,593 2,134,908
Debt interest ................ 109,501 122,704 135,906 135,906 135,906 388,563 1,028,486
Capital leases ............... 11,339 6,573 41 — — — 17,953
Operating leases ............. 60,837 57,501 48,729 41,953 42,400 206,373 457,793
Marketing agreements ........ 16,411 217 — — — — 16,628
Other commitments .............. 202,863 191,457 186,680 177,933 178,306 2,718,529 3,655,768
Total commitments .............. $243,661 $199,964 $188,696 $179,916 $180,374 $2,724,595 $3,717,206
Net cash used by operating activities consists of net loss offset by certain adjustments not affecting current-
period cash flows, and the effect of changes in working capital. Adjustments to net income to determine cash
flows from operations include depreciation and amortization, equity in losses of investees, and other items not
affecting cash flows in the current period. Net cash used by operating activities during 2001 was $120 million,
resulting from our net loss of $567 million, offset by adjustments not affecting 2001 cash flows of $412 million,
and changes in working capital of $36 million. Net cash used by operating activities during 2000 was
$130 million, resulting from our net loss of $1.41 billion, offset by adjustments not affecting 2000 cash flows of
$1.10 billion, and changes in working capital of $178 million. Net cash used by operating activities during 1999
was $91 million resulting from our net loss of $720 million, offset by adjustments not affecting 1999 cash flows
of $405 million, and changes in working capital of $224 million. Improvements in cash flows from operating
activities and an improvement in inventory turns during 2001 were partially offset by slower revenue growth and
a decline in the average number of days trade payables remain outstanding due to, among other things, a shift in
revenue mix towards segments with shorter payment terms, such as U.S. Electronics, Tools and Kitchen and
International.
Cash used in investing activities during 2001 was $253 million, consisting of net purchases of marketable
securities of $197 million, purchases of fixed assets of $50 million and cash paid for acquired assets of
$6 million. Cash provided by investing activities during 2000 was $164 million, consisting of net sales of
marketable securities of $361 million offset by cash paid for investments of $63 million and purchases of fixed
assets of $135 million. Cash used in investing activities during 1999 was $952 million, consisting of net
purchases of marketable securities of $295 million, purchases of fixed assets of $287 million and cash paid for
investments of $370 million.
Net cash provided by financing activities during 2001 was $107 million, consisting primarily of proceeds
from the issuance of common stock to America Online as well as exercises of stock options, offset by
repayments of long-term capital lease obligations. Net cash provided by financing activities during 2000 and
1999 was $693 million and $1.10 billion, respectively, consisting primarily of net proceeds from our issuance of
debt securities. During 2000, we issued 690 million Euros of 6.875% PEACS, and during 1999 we issued
$1.25 billion of 4.75% Convertible Subordinated Notes.
We believe that current cash, cash equivalents and marketable securities balances will be sufficient to meet
our anticipated operating cash needs for at least the next 12 months. In addition, we expect to have positive
operating cash flow, and possibly free cash flow, for fiscal year 2002. However, any projections of future cash
needs and cash flows are subject to substantial uncertainty. See “Additional Factors that May Affect Future
Results.” We continually evaluate opportunities to sell additional equity or debt securities, obtain credit facilities
from lenders, or restructure our long-term debt for strategic reasons or to further strengthen our financial
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