Amazon.com 2004 Annual Report Download - page 88

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 11—INCOME TAXES
Cash taxes paid were $4 million, $2 million, and $1 million for 2004, 2003, and 2002.
The components of the provision for income taxes, net are as follows:
December 31,
2004 2003 2002
Current taxes:
U.S. and state ....................................................... $ 12,148 $ 362 $ 5
International ........................................................ 11,967 2,413 (152)
Current taxes .................................................... 24,115 2,775 (147)
Deferred taxes ....................................................... (256,696) 931 (553)
Provision for income taxes, net ................................. $(232,581) $3,706 $(700)
U.S. and international components of income (loss) before income taxes are as follows:
December 31,
2004 2003 2002
U.S. ............................................... $359,268 $ 58,208 $(167,720)
International ......................................... (3,398) (19,220) 17,888
Income (loss) before income taxes ................... $355,870 $ 38,988 $(149,832)
Total income tax expense/(benefit) and amounts allocated to stockholders’ deficit were as follows:
2004 2003 2002
Income from continuing operations ..................................... $(232,581) $ 3,706 $(700)
Stockholders’ deficit ................................................. (105,883) (2,224) 23
$(338,464) $ 1,482 $(677)
The items accounting for differences between income taxes computed at the federal statutory rate and the
provision (benefit) recorded for income taxes are as follows:
December 31,
2004 2003 2002
Federal statutory rate .................................................... 35.0% 35.0% 35.0%
Effect of:
Decrease in beginning-of-year balance of the valuation allowance ......... (102.2)% (57.1)% (37.4)%
Net operating losses of foreign subsidiaries not benefited ............... 2.5% 25.7% (0.4)%
Permanent differences, state income taxes, and other ................... (0.7)% 5.9% 3.3%
Total ..................................................... (65.4)% 9.5% 0.5%
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