Amazon.com 2005 Annual Report Download - page 57

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AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Year Ended December 31,
2005 2004 2003
CASHANDCASHEQUIVALENTS,BEGINNINGOFPERIOD.............. $1,303 $ 1,102 $ 738
OPERATING ACTIVITIES:
Net income .......................................................... 359 588 35
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of fixed assets, including internal-use software and website
development, and other amortization ............................... 121 76 76
Stock-based compensation ......................................... 87 58 88
Other operating expense (income) .................................... 7 (8) 3
Gains on sales of marketable securities, net ............................ (1) (1) (10)
Remeasurements and other ......................................... (42) 1 130
Non-cash interest expense and other .................................. 5 5 13
Deferred income taxes ............................................. 70 (257) 1
Cumulative effect of change in accounting principle ..................... (26) — —
Changes in operating assets and liabilities:
Inventories ...................................................... (104) (169) (77)
Accounts receivable, net and other current assets ........................ (84) (2) 2
Accounts payable ................................................. 274 286 168
Accrued expenses and other current liabilities .......................... 60 (14) (26)
Additions to unearned revenue ...................................... 156 110 102
Amortization of previously unearned revenue .......................... (149) (107) (112)
Net cash provided by operating activities .......................... 733 566 393
INVESTING ACTIVITIES:
Purchases of fixed assets, including internal-use software and website
development ....................................................... (204) (89) (46)
Acquisitions, net of cash acquired ........................................ (24) (71) —
Sales and maturities of marketable securities and other investments ............. 836 1,427 813
Purchases of marketable securities ....................................... (1,386) (1,584) (536)
Proceeds from sale of subsidiary ......................................... — — 5
Net cash (used in) provided by investing activities ................... (778) (317) 236
FINANCING ACTIVITIES:
Proceeds from exercises of stock options and other .......................... 66 60 163
Proceeds from long-term debt and other ................................... 11 — —
Repayments of long-term debt and capital lease obligations ................... (270) (157) (495)
Net cash used in financing activities .................................. (193) (97) (332)
Foreign-currency effect on cash and cash equivalents ........................ (52) 49 67
Net (decrease) increase in cash and cash equivalents ......................... (290) 201 364
CASHANDCASHEQUIVALENTS,ENDOFPERIOD..................... $1,013 $ 1,303 $1,102
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest .................................................. $ 105 $ 108 $ 120
Cash paid for income taxes ............................................. 12 4 2
See accompanying notes to consolidated financial statements.
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