Amazon.com 2005 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 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.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 11—INCOME TAXES
Cash taxes paid were $12 million, $4 million, and $2 million for 2005, 2004, and 2003.
The components of the provision for income taxes, net are as follows:
Year Ended December 31,
2005 2004 2003
(in millions)
Current taxes:
U.S. and state ....................................... $16 $ 12 $1
International ........................................ 9 12 2
Current taxes .................................... 25 24 3
Deferred taxes ........................................... 70 (257) 1
Provision for income taxes, net .................. $95 $(233) $4
U.S. and international components of income (loss) before income taxes are as follows:
Year Ended December 31,
2005 2004 2003
(in millions)
U.S. ................................................... $601 $358 $ 58
International ............................................ (173) (3) (19)
Income before income taxes ............................ $428 $355 $ 39
Total income tax expense/(benefit) and amounts allocated to stockholders’ equity (deficit) were as follows:
2005 2004 2003
(in millions)
Income from continuing operations ..................................... $95 $(233) $ 4
Stockholders’ equity (deficit) .......................................... (15) (106) (2)
$ 80 $(339) $ 2
The items accounting for differences between income taxes computed at the federal statutory rate and the
provision (benefit) recorded for income taxes are as follows:
Year Ended December 31,
2005 2004 2003
Federal statutory rate ................................................ 35.0% 35.0% 35.0%
Effect of:
Decrease in beginning-of-year balance of the valuation allowance ..... (31.1) (102.2) (57.1)
Net operating losses of foreign subsidiaries not benefited ............ 15.8 2.5 25.7
Permanent differences, state income taxes, and other ............... 2.6 (0.7) 5.9
Total ................................................. 22.3% (65.4)% 9.5%
77