Amazon.com 2002 Annual Report Download - page 48

2003 2004 2005 2006 2007 Thereafter Total
Other commitments:
Debt principal and other(1) 4,962 2,004 74 Ì Ì 2,238,353 2,245,393
Debt interest(1) ÏÏÏÏÏÏÏÏÏ 126,162 139,365 139,365 139,365 139,365 263,034 946,656
Capital leasesÏÏÏÏÏÏÏÏÏÏÏÏ 7,950 898 235 Ì Ì Ì 9,083
Operating leasesÏÏÏÏÏÏÏÏÏÏ 48,349 45,749 39,426 39,674 38,993 143,084 355,275
Marketing agreements ÏÏÏÏ 7,569 ÌÌÌÌ Ì7,569
Other commitments ÏÏÏÏÏÏÏÏ 194,992 188,016 179,100 179,039 178,358 2,644,471 3,563,976
Total commitments ÏÏÏÏÏÏÏÏÏ $220,219 $200,697 $183,909 $182,052 $181,450 $2,652,490 $3,620,817
(1) Principal and interest payments due under the Company's 6.875% PEACS, excluding those payments
with a Ñxed exchange ratio under the currency swap hedge arrangement, will Öuctuate based on the
Euro/U.S. Dollar exchange ratio.
Restructuring-related lease obligations are as follows (in thousands):
2003 2004 2005 2006 2007 Thereafter Total
Gross lease obligations ÏÏ $22,550 $15,150 $11,164 $10,021 $10,078 $ 29,663 $ 98,626
Estimated sublease
income(1) ÏÏÏÏÏÏÏÏÏÏ (1,647) (3,469) (6,656) (7,008) (6,986) (21,644) (47,410)
Lease obligations, net ÏÏÏ $20,903 $11,681 $ 4,508 $ 3,013 $ 3,092 $ 8,019 $ 51,216
(1) At December 31, 2002, the Company had signed contractual sublease agreements covering
$10 million in future payments.
Long-term capital lease obligations are as follows (in thousands):
December 31,
2002
Gross capital lease obligations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 9,083
Less imputed interest ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (592)
Present value of net minimum lease payments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8,491
Less current portion ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (7,506)
Long-term capital lease obligationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 985
Net cash provided by or used in operating activities consists of net loss oÅset by certain adjustments
not aÅecting current-period cash Öows, and the eÅect of changes in working capital. Adjustments to net
loss to determine cash Öows from operations include depreciation and amortization, equity in losses of
investees and other items not aÅecting cash Öows in the current period. Net cash provided by operating
activities during 2002 was $174 million, resulting from our net loss of $149 million that was oÅset by
adjustments not aÅecting 2002 cash Öows of $284 million, and changes in working capital of $40 million.
Adjustments not aÅecting 2002 cash Öows were primarily associated with losses resulting from the
remeasurement of our 6.875% PEACS from Euros to U.S. Dollars, depreciation of Ñxed assets, stock-
based compensation and non-cash interest expense. Net cash used by operating activities during 2001 was
$120 million, resulting from our net loss of $567 million, oÅset by adjustments not aÅecting 2001 cash
Öows 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, oÅset by adjustments not
aÅecting 2000 cash Öows of $1.10 billion and changes in working capital of $178 million.
Cash used in investing activities during 2002 was $122 million, consisting of net purchases of
marketable securities of $83 million and purchases of Ñxed assets of $39 million. Cash used in investing
activities during 2001 was $253 million, consisting of net purchases of marketable securities of
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