Amazon.com 2002 Annual Report Download - page 82

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Stock Awards Outstanding Awards Vested
Weighted Weighted
Number of Average Number of Average
Range of Awards Remaining Exercise Awards Exercise
Exercise Prices (In thousands) Life (yrs) Price (In thousands) Price
18.55 - 21.30 2,004 6.62 20.01 1,243 20.30
21.33 - 104.97 3,230 6.93 40.83 1,549 36.01
0.03 - 104.97 42,005 7.05 11.91 12,646 13.10
Deferred Stock-Based Compensation
The Company recorded aggregate deferred stock-based compensation of $5 million and $9 million in
2002 and 2001 respectively. No similar amounts were recorded in 2000. Deferred stock-based
compensation was recorded in connection with the Company's restricted common stock issued to key
employees for future services. The amounts recorded represent the fair value of the Company's common
stock issued on the date of grant. Such value is recognized as an expense ratably over the corresponding
service period, which is generally Ñve years. Additionally, in 2002, 2001 and 2000, the Company recorded
adjustments to reduce previously recorded deferred stock-based compensation of $2 million, $4 million and
$3 million, respectively, representing the remaining unvested portion of restricted stock awards upon
termination of certain key employees prior to vesting.
Comprehensive Income (Loss)
The changes in the components of comprehensive loss were as follows (in thousands):
Year Ended December 31,
2002 2001 2000
Net lossÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(149,132) $(567,277) $(1,411,273)
Other comprehensive income (loss):
Foreign-currency translations gains (losses), net ÏÏÏÏÏÏÏÏÏÏÏÏÏ 16,910 (1,257) (364)
Net unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses) arising during year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 23,459 (33,479) (178,815)
Less reclassiÑcation of net realized (gains) losses included in
net loss ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3,165) 40,484 178,512
Net unrealized gains (losses) on available-for-sale securities 20,294 7,005 (303)
Net unrealized gains (losses) on Euro-based currency swap:
Unrealized gains (losses) on remeasurement to fair value ÏÏÏÏÏ 21,106 (21,867) Ì
ReclassiÑcation of (gains) losses to oÅset currency losses and
gains on hedged portion of 6.875% PEACS included in net
lossÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (12,578) 4,530 Ì
Net unrealized gains (losses) on Euro-based currency swap 8,528 (17,337) Ì
ReclassiÑcation of currency gains on 6.875% PEACSÏÏÏÏÏÏÏÏÏÏÏ Ì (9,811) Ì
Cumulative eÅect of accounting change to adopt SFAS No. 133. Ì (12,294) Ì
Other comprehensive income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 45,732 (33,694) (667)
Comprehensive loss ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(103,400) $(600,971) $(1,411,940)
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