Amazon.com 2005 Annual Report Download - page 32

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Item 6. Selected Consolidated Financial Data
The following selected consolidated financial data should be read in conjunction with the consolidated
financial statements and the notes thereto in Item 8 of Part II, “Financial Statements and Supplementary Data,”
and the information contained in Item 7 of Part II, “Management’s Discussion and Analysis of Financial
Condition and Results of Operations.” Historical results are not necessarily indicative of future results.
Year Ended December 31,
2005 2004 2003 2002 2001
(in millions, except per share data)
Income Statement:
Net sales .............................................. $8,490 $6,921 $5,264 $3,933 $3,122
Income (loss) before change in accounting principle ........... 333 588 35 (150) (557)
Cumulative effect of change in accounting principle ........... 26 — — 1 (11)
Net income (loss) ....................................... 359 588 35 (149) (567)
Basic earnings (loss) per share (1):
Prior to cumulative effect of change in accounting principle ..... $ 0.81 $ 1.45 $ 0.09 $ (0.40) $ (1.53)
Cumulative effect of change in accounting principle ........... 0.06 — — 0.01 (0.03)
Basic earnings (loss) per share (1) .......................... $ 0.87 $ 1.45 $ 0.09 $ (0.39) $ (1.56)
Diluted earnings (loss) per share (1):
Prior to cumulative effect of change in accounting principle ..... $ 0.78 $ 1.39 $ 0.08 $ (0.40) $ (1.53)
Cumulative effect of change in accounting principle ........... 0.06 — — 0.01 (0.03)
Diluted earnings (loss) per share (1) ........................ $ 0.84 $ 1.39 $ 0.08 $ (0.39) $ (1.56)
Weighted average shares used in computation of earnings (loss)
per share:
Basic ................................................. 412 406 395 378 364
Diluted ............................................... 426 425 419 378 364
December 31,
2005 2004 2003 2002 2001
(in millions)
Balance Sheet:
Total assets ............................................ $3,696 $3,248 $2,162 $1,990 $1,638
Long-term debt and other ................................. $1,521 $1,855 $1,945 $2,277 $2,156
(1) For further discussion of earnings (loss) per share, see Item 8 of Part II, “Financial Statements and
Supplementary Data—Note 1—Description of Business and Accounting Policies.”
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
This Annual Report on Form 10-K includes forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including
statements regarding guidance, industry prospects or future results of operations or financial position, made in
this Annual Report on Form 10-K are forward-looking. We use words such as anticipates, believes, expects,
future, intends, and similar expressions to identify forward-looking statements. Forward-looking statements
reflect management’s current expectations and are inherently uncertain. Actual results could differ materially for
a variety of reasons, including, among others, fluctuations in foreign exchange rates, changes in global economic
conditions and consumer spending, world events, the rate of growth of the Internet and online commerce, the
amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of
products sold to customers, the mix of net sales derived from products as compared with services, competition,
management of growth, potential fluctuations in operating results, international growth and expansion,
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