Amazon.com 2003 Annual Report Download - page 82

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Year Ended 2001:
North America International Consolidated
Net sales ...................................... $2,460,336 $ 662,097 $3,122,433
Grossprofit.................................... 657,229 141,329 798,558
Segment operating income (loss) ................... 57,501 (102,503) (45,002)
Stock-based compensation ........................ (4,637)
Amortization of goodwill and other intangibles ........ (181,033)
Restructuring-related and other .................... (181,585)
Total non-operating expenses, net .................. (114,170)
Equity in losses of equity-method investees, net ....... (30,327)
Cumulative effect of change in accounting principle .... (10,523)
Netloss ....................................... $ (567,277)
Net sales shipped to customers outside of the U.S. represented approximately 43%, 35%, and 29% of net
sales for 2003, 2002, and 2001. Shipments into the United Kingdom represents approximately 13% and 11% of
total net sales in 2003 and 2002, and shipments into Germany represents 11% of total net sales in 2003. Net fixed
assets held in locations outside the U.S. were $45 million at December 31, 2003.
Depreciation expense, by segment, was as follows (in thousands):
North America International Consolidated
2003 ................................. $59,558 $10,186 $69,744
2002 ................................. 67,036 9,625 76,661
2001 ................................. 72,007 11,426 83,433
Note 16—FAIR VALUES OF FINANCIAL INSTRUMENTS
The carrying amount and estimated fair values of our financial instruments were as follows (in thousands):
December 31, 2003 December 31, 2002
Carrying
Amount Fair Value
Carrying
Amount Fair Value
Cash and cash equivalents .......................... $1,099,143 $1,102,273 $ 732,907 $ 738,254
Marketable securities (1) ........................... 278,390 292,550 549,781 562,715
Other equity investments (2) ........................ 14,831 86,517 15,442 46,454
Euro currency swap (3) ............................ — — 12,159 12,159
Long-term debt (4) ............................... 1,919,471 1,924,995 2,229,904 1,719,108
(1) The fair value of marketable securities is determined from publicly quoted prices. See “Note 2—Cash, Cash
Equivalents and Marketable Securities.”
(2) The fair value of other equity investments is determined from publicly quoted prices, plus the carrying
amount of privately-held investments for which market values are not readily determinable. We evaluate
“Other equity investments” for impairment in accordance with our stated policy. See “Note 1—Description
of Business and Accounting Policies,” and “Note 4—Other Equity Investments.”
(3) The fair value of the Euro currency swap was determined based on a third-party valuation. See “Note 6
—Long-Term Debt and Other.”.
(4) The fair value of our long-term debt is determined based on quoted prices. See “Note 6—Long-Term Debt
and Other.”
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