Amazon.com 2000 Annual Report Download - page 69

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Information on reportable segments and reconciliation to consolidated net loss is as follows:
U.S. Books,
Music and
DVD/video
Early-Stage
Businesses
and Other Total U.S. International Consolidated
(in thousands)
2000:
Net sales ...................... $1,698,266 $ 682,642 $2,380,908 $381,075 $ 2,761,983
Gross profit .................... 417,452 160,889 578,341 77,436 655,777
Segment gain (loss) .............. 71,441 (243,371) (171,930) (145,070) (317,000)
Other non-cash operating expenses . . . — — — — (546,880)
Net interest expense and other ...... — — — — (242,797)
Equity in losses of equity-method
investees, net ................. — — — — (304,596)
Net loss ....................... — — — — $(1,411,273)
1999:
Net sales ...................... $1,308,292 $ 163,804 $1,472,096 $167,743 $ 1,639,839
Gross profit (loss) ................ 262,871 (7,801) 255,070 35,575 290,645
Segment loss ................... (31,000) (242,148) (273,148) (79,223) (352,371)
Other non-cash operating expenses . . . — — — — (253,384)
Net interest expense and other ...... — — — — (37,444)
Equity in losses of equity-method
investees, net ................. — — — — (76,769)
Net loss ....................... — — — — $ (719,968)
1998:
Net sales ...................... $ 588,013 $ — $ 588,013 $ 21,806 $ 609,819
Gross profit .................... 128,710 — 128,710 4,954 133,664
Segment loss ................... (35,534) — (35,534) (25,498) (61,032)
Other non-cash operating expenses . . . — — — — (48,023)
Interest expense, net .............. — — — — (12,586)
Equity in losses of equity-method
investees, net ................. — — — — (2,905)
Net loss ....................... — — — — $ (124,546)
Net sales to customers outside of the U.S. represented approximately 22%, 22% and 20% of net sales for
the years ended December 31, 2000, 1999 and 1998, respectively. No individual foreign country or
geographical area or customer accounted for more than 10% of net sales in any of the periods presented. There
were no transfers between geographic areas during the years ended December 31, 2000, 1999 or 1998.
Included in U.S. Early-Stage Businesses and Other are revenues earned in connection with the Company’s
business-to-business strategic relationships (‘‘service revenues’’). Service revenues were $167 million and
$9 million, and related cost of services included in ‘‘Cost of sales’’ were $57 million and $0 for the years
ended December 31, 2000 and 1999, respectively. Service revenues during 2000 related primarily to
commercial agreements with Toysrus.com, Ashford.com, drugstore.com and Audible. Service revenues during
2000 included sales of inventory, at cost, to Toysrus.com of $29 million.
AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
61