Amazon.com 2002 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2002 Amazon.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 98

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98

AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
For the Years Ended December 31,
2002 2001 2000
Basic and diluted loss per share:
Reported loss per share ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (0.39) $ (1.56) $ (4.02)
Goodwill amortization(1) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 0.48 0.88
Inventory costing change(2)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (0.01) Ì Ì
Adjusted basic and diluted loss per share ÏÏÏÏÏÏÏÏÏ $ (0.40) $ (1.08) $ (3.14)
(1) Includes $54 million and $69 million, or $0.15 and $0.20 per share, for 2001 and 2000, respectively,
related to amortization of other intangibles that are classiÑed as goodwill eÅective January 1, 2002.
(2) The inventory costing change in 2000 reÖects the cumulative adjustment through that date.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation, which includes the amortization of
assets recorded under capital leases. Fixed assets, including assets purchased under capital leases, are
depreciated on a straight-line basis over the estimated useful lives of the assets (generally two to ten
years).
Included in Ñxed assets is the cost of internal-use software, including software used to upgrade and
enhance the Company's Web sites. The Company expenses all costs related to the development of
internal-use software other than those incurred during the application development stage. Costs incurred
during the application development stage are capitalized and amortized over the estimated useful life of
the software (generally two years).
Goodwill and Other Intangibles
Other intangibles consist of the following (in thousands):
December 31, 2002 December 31, 2001
Gross Other Gross Other
Carrying Accumulated Intangibles, Carrying Accumulated Intangibles,
Amount Amortization Net Amount Amortization Net
Contract-based ÏÏÏÏÏ $16,584 $(14,414) $2,170 $ 16,584 $ (11,170) $ 5,414
Marketing-relatedÏÏÏ 5,617 (5,010) 607 5,617 (3,793) 1,824
Technology-based ÏÏÏ 4,386 (4,331) 55 4,386 (3,808) 578
Customer-related ÏÏÏ 2,021 (1,393) 628 2,021 (899) 1,122
Assembled
workforce(1) ÏÏÏÏÏ Ì Ì Ì 193,271 (167,827) 25,444
Other intangibles ÏÏÏ $28,608 $(25,148) $3,460 $221,879 $(187,497) $34,382
(1) As of January 1, 2002, in accordance with SFAS No. 142, the Company reclassiÑed its assembled
workforce intangibles into goodwill.
At December 31, 2002 and 2001, goodwill was $71 million and $45 million, respectively, stated net of
accumulated amortization of $740 million (of which $168 million of accumulated amortization was
reclassiÑed with the adoption of SFAS No. 141 on January 1, 2002) and $572 million, respectively.
During 2002, no goodwill or other intangibles were acquired, impaired, or disposed, and consistent with
SFAS No. 142, no goodwill amortization was recorded.
52