Amazon.com 2000 Annual Report Download - page 68

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Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant
components of the Company’s deferred tax assets are as follows:
December 31,
2000 1999
(in thousands)
Net operating loss carryforwards .......................... $576,024 $423,222
Depreciation and amortization ........................... 9,777 (931)
Accrued expenses and valuation allowances ................. 32,050 19,482
Unearned revenue .................................... 39,916 —
Other .............................................. 19,435 9,030
Total deferred tax assets ............................ 677,202 450,803
Valuation allowance for deferred tax assets .............. (677,202) (450,803)
Net deferred tax assets ................................. $ — $ —
Note 14—EMPLOYEE BENEFIT PLAN
The Company has a 401(k) savings plan covering substantially all of its employees. Eligible employees
may contribute through payroll deductions. The Company matches employees’ contributions at the discretion of
the Company’s Board of Directors. To date, the Company has not matched employee contributions to the
401(k) savings plan.
Note 15—SEGMENT INFORMATION
The Company identifies operating segments based on product line information, considering line maturity,
within the United States and separately identifies its international operations as an operating segment. The
financial results of the Company’s operating segments are reported to the Company’s Chief Operating Decision
Maker in the following groupings: U.S. Books; Music; DVD/video; International; and Early-Stage Businesses
and Other. The results for U.S. Books, Music and DVD/video have been aggregated into one reportable
segment due to the similarity of their economic characteristics.
The measure of profit or loss used for each reportable segment is income (loss) from operations before
non-cash operating expenses, including stock-based compensation, amortization of goodwill and other
intangibles, and impairment-related and other. Assets are not allocated to operating segments for reporting to
the Company’s Chief Operating Decision Maker and there are no intersegment revenues on transactions
between reportable segments.
AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
60