Amazon.com 2005 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2005 Amazon.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
Year Ended December 31,
2005 2004 2003
Net sales ............................................................. $8,490 $6,921 $5,264
Cost of sales .......................................................... 6,451 5,319 4,007
Gross profit ........................................................... 2,039 1,602 1,257
Operating expenses (1):
Fulfillment ....................................................... 745 601 495
Marketing ........................................................ 198 162 128
Technology and content ............................................. 451 283 257
General and administrative .......................................... 166 124 104
Other operating expense (income) ..................................... 47 (8) 3
Total operating expenses ........................................ 1,607 1,162 987
Income from operations ................................................. 432 440 270
Interest income ........................................................ 44 28 22
Interest expense ....................................................... (92) (107) (130)
Other income (expense), net .............................................. 2 (5) 7
Remeasurements and other ............................................... 42 (1) (130)
Total non-operating expense ......................................... (4) (85) (231)
Income before income taxes .............................................. 428 355 39
Provision for income taxes ............................................... 95 (233) 4
Income before change in accounting principle ............................... 333 588 35
Cumulative effect of change in accounting principle .......................... 26 — —
Net income ........................................................... $ 359 $ 588 $ 35
Basic earnings per share:
Prior to cumulative effect of change in accounting principle ................ $ 0.81 $ 1.45 $ 0.09
Cumulative effect of change in accounting principle ...................... 0.06 — —
$ 0.87 $ 1.45 $ 0.09
Diluted earnings per share:
Prior to cumulative effect of change in accounting principle ................ $ 0.78 $ 1.39 $ 0.08
Cumulative effect of change in accounting principle ...................... 0.06 — —
$ 0.84 $ 1.39 $ 0.08
Weighted average shares used in computation of earnings per share:
Basic ............................................................ 412 406 395
Diluted .......................................................... 426 425 419
(1) Includes stock-based compensation as follows:
Fulfillment ....................................................... $16 $10 $18
Marketing ........................................................ 6 4 5
Technology and content ............................................. 45 32 50
General and administrative .......................................... 20 12 15
Total stock-based compensation expense ........................... $87 $58 $88
See accompanying notes to consolidated financial statements.
50