Amazon.com 2002 Annual Report Download - page 47

First quarter of 2003 pro forma net proÑt is expected to be between $5 million and $20 million, or
between $0.01 per share and $0.05 per share. Pro forma net proÑt for full year 2003 is expected to be over
$115 million, or over $0.27 per share. However, any such projections are subject to substantial uncertainty.
See Item 1 of Part I, ""Business Ì Additional Factors That May AÅect Future Results.''
Liquidity and Capital Resources
Our principal sources of liquidity are our cash, cash equivalents and marketable securities. Our cash
and cash equivalents balance was $738 million, $540 million and $822 million, and our marketable
securities balance was $563 million, $456 million and $278 million at December 31, 2002, 2001 and 2000,
respectively.
Combined cash, cash equivalents and marketable securities were $1.30 billion, $997 million and
$1.10 billion at December 31, 2002, 2001 and 2000, respectively. Equity securities of $4 million are
included in ""Marketable securities'' at December 31, 2002, the value of which may Öuctuate signiÑcantly.
Equity securities of $13 million and $36 million were included in ""Marketable securities'' at December 31,
2001 and 2000, respectively.
We have pledged a portion of our marketable securities as collateral for standby letters of credit that
guarantee certain of our contractual obligations, a majority of which relates to property leases; the swap
agreement that hedges the foreign-exchange rate risk on a portion of our 6.875% PEACS; and some of our
real estate lease agreements. The amount of marketable securities we are required to pledge pursuant to
the swap agreement Öuctuates with the fair market value of the swap obligation. The change in the total
amount of collateral pledged under these agreements was as follows (in thousands):
Standby
Letters of Swap Real Estate
Credit Agreement Leases Total
Balance at December 31, 2001 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 77,635 $ 48,498 $40,657 $166,790
Net change in collateral pledgedÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (19,741) (25,403) (578) (45,722)
Balance at December 31, 2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 57,894 $ 23,095 $40,079 $121,068
As of December 31, 2002, our principal commitments consisted of long-term indebtedness totaling
$2.28 billion related primarily to our 6.875% PEACS, 4.75% Convertible Subordinated Notes and Senior
Discount Notes; trade payables of $618 million; and accrued expenses and other liabilities of $315 million,
which includes current restructuring-related obligations of $25 million. Additionally, we are scheduled
under certain of our long-term debt obligations to make periodic interest payments through 2010 in the
aggregate of $947 million, and are obligated under operating leases and commitments for advertising and
promotional arrangements in the aggregate of $355 million and $8 million, respectively.
The following are our contractual commitments associated with our operational restructuring,
indebtedness, lease obligations and marketing agreements (in thousands):
2003 2004 2005 2006 2007 Thereafter Total
Restructuring-related
commitments:
Operating leases, net of
estimated sublease
income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 20,903 $ 11,681 $ 4,508 $ 3,013 $ 3,092 $ 8,019 $ 51,216
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,324 1,000 301 Ì Ì Ì 5,625
Restructuring-related
commitments ÏÏÏÏÏÏÏÏÏÏÏÏ 25,227 12,681 4,809 3,013 3,092 8,019 56,841
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