Amazon.com 2004 Annual Report Download - page 94

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Year Ended December 31, 2003
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Net sales ....................................... $1,945,772 $1,134,456 $1,099,912 $1,083,559
Gross profit ..................................... 426,837 285,821 273,928 270,582
Net income (loss) ................................ 73,154 15,563 (43,314) (10,121)
Basic earnings (loss) per share (1) ................... $ 0.18 $ 0.04 $ (0.11) $ (0.03)
Diluted earnings (loss) per share (1) .................. $ 0.17 $ 0.04 $ (0.11) $ (0.03)
Shares used in computation of earnings (loss) per share:
Basic ...................................... 401,422 397,912 393,876 388,541
Diluted ..................................... 425,214 422,802 393,876 388,541
Year Ended December 31, 2002
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Net sales ....................................... $1,428,610 $851,299 $805,605 $847,422
Gross profit ..................................... 335,159 216,167 218,167 223,125
Income (loss) before change in accounting principle ..... 2,651 (35,080) (93,553) (23,951)
Cumulative effect of change in accounting principle ..... — — — $ 801
Net income (loss) ................................ 2,651 $ (35,080) $ (93,553) $ (23,150)
Basic and diluted earnings (loss) per share (1):
Prior to cumulative effect of change in accounting
principle .................................. $ 0.01 $ (0.09) $ (0.25) $ (0.06)
Cumulative effect of change in accounting
principle .................................. — — — —
$0.01 $ (0.09) $ (0.25) $ (0.06)
Shares used in computation of earnings (loss) per share:
Basic ...................................... 383,702 379,650 376,937 373,031
Diluted ..................................... 407,056 379,650 376,937 373,031
(1) The sum of quarterly per share amounts may not equal per share amounts reported for year-to-date periods.
This is due to changes in the number of weighted-average shares outstanding and the effects of rounding for
each period.
Note 15—SUBSEQUENT EVENTS (UNAUDITED)
On March 7, 2005, we redeemed 200 million Euros principal of our 6.875% PEACS for a cash payment of
$266 million, which includes $1 million of interest from and including February 16 through March 6, 2005.
Under the Indenture, no premium was required. As of March 7, 2005, the outstanding principal amount of our
6.875% PEACS was 490 million Euros ($649 million using the Euro to U.S. Dollar exchange rate on that date).
Regarding litigation matters, in March 2005, we signed a Stipulation of Settlement with counsel
representing the alleged plaintiff class, with respect to the 1934 Act claims in the Securities Class Actions. If
approved by the court, the settlement would dispose of all claims arising under the 1934 Act, but not the 1933
Act, in exchange for a payment of $27,500,000, most if not all of which we expect to be funded by our insurers.
In the Pinpoint litigation, the lawsuit was refiled in March 2005 in the U.S. District Court for the Northern
District of Illinois after being dismissed without prejudice by the same court in December 2004. In the Cendant
litigation, Cendant voluntarily withdrew its complaint without prejudice in February 2005. However, we expect
the plaintiff to refile the claims unless they are otherwise settled or disposed of. See “Note 5—Commitments and
Contingencies—Legal Proceedings.”
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