Amazon.com 2003 Annual Report Download - page 44

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The following is a reconciliation of our non-GAAP measures to the most comparable GAAP measures for 2003, 2002, and 2001. Quarterly
reconciliations are consistent with full-year presentation.
Year Ended December 31, 2003 Year Ended December 31, 2002 Year Ended December 31, 2001
As
Reported(1) Adjustments
Pro
Forma
As
Reported(1) Adjustments
Pro
Forma
As
Reported(1) Adjustments
Pro
Forma
(in thousands) (in thousands) (in thousands)
Net sales ............................. $5,263,699 $ — $5,263,699 $3,932,936 $ — $3,932,936 $3,122,433 $ — $3,122,433
Cost of sales .......................... 4,006,531 — 4,006,531 2,940,318 — 2,940,318 2,323,875 — 2,323,875
Grossprofit .......................... 1,257,168 — 1,257,168 992,618 — 992,618 798,558 — 798,558
Operating expenses:
Fulfillment ....................... 477,032 — 477,032 392,467 — 392,467 374,250 — 374,250
Marketing ........................ 122,787 — 122,787 125,383 — 125,383 138,283 — 138,283
Technology and content ............. 207,809 — 207,809 215,617 — 215,617 241,165 — 241,165
General and administrative .......... 88,302 — 88,302 79,049 — 79,049 89,862 — 89,862
Stock-based compensation ........... 87,751 (87,751) — 68,927 (68,927) — 4,637 (4,637) —
Amortization of goodwill and other
intangibles ..................... 2,752 (2,752) — 5,478 (5,478) — 181,033 (181,033) —
Restructuring-related and other ....... 140 (140) — 41,573 (41,573) — 181,585 (181,585) —
Total operating expenses ........ 986,573 (90,643) 895,930 928,494 (115,978) 812,516 1,210,815 (367,255) 843,560
Income (loss) from operations ............ 270,595 90,643 361,238(2) 64,124 115,978 180,102(2) (412,257) 367,255 (45,002)(2)
Interest income ........................ 21,955 — 21,955 23,687 — 23,687 29,103 — 29,103
Interest expense ....................... (129,979) — (129,979) (142,925) — (142,925) (139,232) — (139,232)
Other income (expense), net ............. 2,808 — 2,808 5,623 — 5,623 (1,900) — (1,900)
Remeasurement of 6.875% PEACS and
other .............................. (129,661) 129,661 — (96,273) 96,273 — (2,141) 2,141 —
Total non-operating expenses,
net........................ (234,877) 129,661 (105,216) (209,888) 96,273 (113,615) (114,170) 2,141 (112,029)
Income (loss) before equity in losses of
equity-method investees ............... 35,718 220,304 256,022 (145,764) 212,251 66,487 (526,427) 369,396 (157,031)
Equity in losses of equity-method investees,
Net ............................... (436) 436 — (4,169) 4,169 — (30,327) 30,327 —
Income (loss) before change in accounting
principle ........................... 35,282 220,740 256,022 (149,933) 216,420 66,487 (556,754) 399,723 (157,031)
Cumulative effect of change in accounting
principle ........................... — — — 801 (801) — (10,523) 10,523 —
Netincome(loss) ...................... $ 35,282 $220,740 $ 256,022 $ (149,132) $ 215,619 $ 66,487 $ (567,277) $410,246 $ (157,031)
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