Amazon.com 2004 Annual Report Download - page 59

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AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31,
2004 2003 2002
CASH AND CASHEQUIVALENTS, BEGINNING OF PERIOD ..... $1,102,273 $ 738,254 $ 540,282
OPERATING ACTIVITIES:
Net income (loss) ............................................ 588,451 35,282 (149,132)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation of fixed assets, including internal-use software and
website development, and other amortization ................ 75,724 75,558 82,274
Stock-based compensation ................................ 57,702 87,751 68,927
Other operating expense (income) ........................... (7,964) 2,752 8,948
Gains on sales of marketable securities, net ................... (586) (9,598) (5,700)
Remeasurements and other ................................ 824 130,097 100,442
Non-cash interest expense and other ......................... 4,756 12,918 29,586
Deferred income taxes .................................... (256,696) 931 (553)
Cumulative effect of change in account principle ............... — — (801)
Changes in operating assets and liabilities:
Inventories ............................................. (168,896) (76,786) (51,303)
Accounts receivable, net and other current assets ............... (1,745) 1,616 (31,704)
Accounts payable ........................................ 286,091 167,732 156,542
Accrued expenses and other current liabilities ................. (15,110) (27,982) 3,800
Additions to unearned revenue ............................. 109,936 101,641 95,404
Amortization of previously unearned revenue ................. (106,886) (111,740) (135,466)
Interest payable ......................................... 959 1,850 3,027
Net cash provided by operating activities ................. 566,560 392,022 174,291
INVESTING ACTIVITIES:
Sales and maturities of marketable securities and other investments .... 1,426,786 813,184 553,289
Purchases of marketable securities .............................. (1,584,089) (535,642) (635,810)
Purchases of fixed assets, including internal-use software and website
development .............................................. (89,133) (45,963) (39,163)
Proceeds from sale of subsidiary ................................ — 5,072 —
Acquisition, net of cash acquired ............................... (71,195) — —
Net cash (used in) provided by investing activities .......... (317,631) 236,651 (121,684)
FINANCING ACTIVITIES:
Proceeds from exercises of stock options ......................... 60,109 163,322 121,689
Repayments of long-term debt, capital lease obligations ............. (157,401) (495,308) (14,795)
Net cash (used in) provided by financing activities ............. (97,292) (331,986) 106,894
Foreign-currency effect on cash and cash equivalents ............... 48,690 67,332 38,471
Net increase in cash and cash equivalents ......................... 200,327 364,019 197,972
CASH AND CASHEQUIVALENTS, ENDOFPERIOD............ $1,302,600 $1,102,273 $ 738,254
SUPPLEMENTAL CASH FLOW INFORMATION:
Fixed assets acquired under capital leases and other financing
arrangements ............................................. $ 860 $ 2,677 $ 3,023
Cash paid for interest ......................................... 107,604 119,947 111,589
Cash paid for income taxes .................................... 4,051 1,825 1,448
See accompanying notes to consolidated financial statements.
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