Amazon.com 2003 Annual Report Download - page 52

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AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Years Ended December 31,
2003 2002 2001
Net sales .................................................. $5,263,699 $3,932,936 $3,122,433
Cost of sales ............................................... 4,006,531 2,940,318 2,323,875
Grossprofit ................................................ 1,257,168 992,618 798,558
Operating expenses:
Fulfillment ............................................. 477,032 392,467 374,250
Marketing ............................................. 122,787 125,383 138,283
Technology and content .................................. 207,809 215,617 241,165
General and administrative ................................ 88,302 79,049 89,862
Stock-based compensation (1) ............................. 87,751 68,927 4,637
Amortization of goodwill and other intangibles ................ 2,752 5,478 181,033
Restructuring-related and other ............................. 140 41,573 181,585
Total operating expenses .............................. 986,573 928,494 1,210,815
Income (loss) from operations ................................. 270,595 64,124 (412,257)
Interest income ............................................. 21,955 23,687 29,103
Interest expense ............................................. (129,979) (142,925) (139,232)
Other income (expense), net ................................... 2,808 5,623 (1,900)
Remeasurement of 6.875% PEACS and other (See Note 12) .......... (129,661) (96,273) (2,141)
Total non-operating expenses, net ........................... (234,877) (209,888) (114,170)
Income (loss) before equity in losses of equity-method investees ...... 35,718 (145,764) (526,427)
Equity in losses of equity-method investees, net ................... (436) (4,169) (30,327)
Income(loss)beforechangeinaccountingprinciple ................ 35,282 (149,933) (556,754)
Cumulative effect of change in accounting principle ................ — 801 (10,523)
Netincome(loss) ........................................... $ 35,282 $ (149,132) $ (567,277)
Basic earnings (loss) per share:
Prior to cumulative effect of change in accounting principle ...... $ 0.09 $ (0.40) $ (1.53)
Cumulative effect of change in accounting principle ............ — 0.01 (0.03)
$ 0.09 $ (0.39) $ (1.56)
Diluted earnings (loss) per share:
Prior to cumulative effect of change in accounting principle ...... $ 0.08 $ (0.40) $ (1.53)
Cumulative effect of change in accounting principle ............ — 0.01 (0.03)
$ 0.08 $ (0.39) $ (1.56)
Weighted average shares used in computation of earnings (loss) per
share:
Basic ................................................. 395,479 378,363 364,211
Diluted................................................ 419,352 378,363 364,211
(1) Components of stock-based compensation:
Fulfillment ............................................. $17,960 $12,126 $ 481
Marketing .............................................. 4,968 4,239 690
Technology and content ................................... 49,555 35,926 2,723
General and administrative ................................ 15,268 16,636 743
$87,751 $68,927 $4,637
See accompanying notes to consolidated financial statements.
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