Amazon.com 2000 Annual Report Download - page 56

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evidenced by general declines in consumer spending, the Company’s decline in market capitalization as
determined by the quoted market price for its common stock, the pervasive and significant declines in
e-commerce valuations in comparison with the market valuations at the time the Company invested in its
acquisitions, and changes in the Company’s strategic plans for certain of the acquired businesses. Based on the
results of its discounted cash flow analyses, the Company identified certain levels of impairment corresponding
with the business-unit goodwill and other intangibles initially recorded in connection with the following
acquisitions: Alexa, Back to Basics, Tool Crib and Livebid. Accordingly, the Company recorded an impairment
loss of $184 million during the fourth quarter of 2000 included in ‘‘Impairment-related and other’’ on the
consolidated statements of operations. No impairments were identified in the Company’s enterprise-level
goodwill and other intangibles, and no impairments of goodwill and other intangibles were recorded in 1999
and 1998.
Note 6—INVESTMENTS
At December 31, 2000, the Company’s equity-method investees and the Company’s approximate
ownership interest in each investee, based on outstanding shares, were as follows:
Company
Percentage
Ownership
Basis Technology ..................................................... 11%
Drugstore.com ........................................................ 21
Eziba.com ........................................................... 20
Greenlight.com ....................................................... 5
Kozmo.com .......................................................... 16
Although the Company’s ownership percentage for Basis Technology, Greenlight.com and Kozmo.com is
below 20%, the Company’s representation on the investees’ Boards of Directors and the impact of commercial
arrangements result in the Company having significant influence over the operations of each investee.
Summarized balance sheet information of the Company’s equity-method investees is as follows:
December 31,
2000 1999
(in thousands)
Current assets ............................................... $279,487 $353,182
Noncurrent assets ............................................ 511,671 316,720
Current liabilities ............................................ 71,954 47,062
Noncurrent liabilities ......................................... 113,258 67,692
Summarized statement of operations information of the Company’s equity-method investees, calculated for
each investee for the period during which the Company had investments in such investees, is as follows:
For the Years Ended December 31,
2000 1999 1998
(in thousands)
Net sales ......................................... $133,821 $ 27,996 $ —
Gross profit (loss) .................................. 42,402 (3,072) —
Net loss ......................................... (453,263) (152,541) (6,008)
AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
48