Amazon.com 2004 Annual Report Download - page 93

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 13—FAIR VALUES OF FINANCIAL INSTRUMENTS
The carrying amount and estimated fair values of our financial instruments were as follows (in thousands):
December 31,
2004 2003
Carrying
Amount Fair Value
Carrying
Amount Fair Value
Cash and cash equivalents .......................... $1,302,600 $1,302,600 $1,102,273 $1,102,273
Marketable securities (1) ........................... 476,599 476,599 292,550 292,550
Other equity investments (2) ........................ 15,018 59,092 14,831 86,517
Long-term debt (3) ............................... 1,834,846 1,842,763 1,919,471 1,924,995
(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.”
(3) The fair value of our long-term debt is determined based on quoted prices. See “Note 4—Long-Term Debt
and Other.”
Note 14—QUARTERLY RESULTS (UNAUDITED)
The following tables contain selected unaudited statement of operations information for each quarter of
2004, 2003, and 2002. The following information reflects all normal recurring adjustments necessary for a fair
presentation of the information for the periods presented. The operating results for any quarter are not necessarily
indicative of results for any future period. Unaudited quarterly results were as follows (in thousands, except per
share data):
Year Ended December 31, 2004
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Net sales ....................................... $2,540,959 $1,462,475 $1,387,341 $1,530,349
Gross profit ..................................... 544,466 355,651 341,046 360,834
Net income ..................................... 346,688 54,147 76,480 111,136
Basic earnings per share (1) ........................ $ 0.85 $ 0.13 $ 0.19 $ 0.28
Diluted earnings per share (1) ....................... $ 0.82 $ 0.13 $ 0.18 $ 0.26
Shares used in computation of earnings (loss) per share:
Basic ...................................... 408,227 406,647 405,268 403,542
Diluted ..................................... 425,034 424,777 424,678 424,519
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