Amazon.com 2006 Annual Report Download - page 54

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AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Year Ended December 31,
2006 2005 2004
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ............. $1,013 $ 1,303 $ 1,102
OPERATING ACTIVITIES:
Net income ......................................................... 190 359 588
Adjustments to reconcile net income to net cash from operating activities:
Depreciation of fixed assets, including internal-use software and website
development, and other amortization ............................... 205 121 76
Stock-based compensation ......................................... 101 87 58
Other operating expense (income) ................................... 10 7 (8)
Gains on sales of marketable securities, net ............................ (2) (1) (1)
Remeasurements and other ........................................ (6) (37) 6
Deferred income taxes ............................................ 22 70 (257)
Excess tax benefit on stock awards .................................. (102) (7) —
Cumulative effect of change in accounting principle .................... — (26) —
Changes in operating assets and liabilities:
Inventories ..................................................... (282) (104) (169)
Accounts receivable, net and other current assets ....................... (103) (84) (2)
Accounts payable ................................................ 402 274 286
Accrued expenses and other liabilities ................................ 241 67 (14)
Additions to unearned revenue ...................................... 206 156 110
Amortization of previously unearned revenue .......................... (180) (149) (107)
Net cash provided by operating activities ......................... 702 733 566
INVESTING ACTIVITIES:
Purchases of fixed assets, including internal-use software and website
development ...................................................... (216) (204) (89)
Acquisitions, net of cash acquired ....................................... (32) (24) (71)
Sales and maturities of marketable securities and other investments ............ 1,845 836 1,427
Purchases of marketable securities and other investments .................... (1,930) (1,386) (1,584)
Net cash used in investing activities ............................. (333) (778) (317)
FINANCING ACTIVITIES:
Proceeds from exercises of stock options ................................. 35 59 60
Excess tax benefit on stock awards ...................................... 102 7 —
Common stock repurchased ............................................ (252) — —
Proceeds from long-term debt and other .................................. 98 11 —
Repayments of long-term debt and capital lease obligations ................... (383) (270) (157)
Net cash used in financing activities ............................. (400) (193) (97)
Foreign-currency effect on cash and cash equivalents ........................ 40 (52) 49
Net increase (decrease) in cash and cash equivalents ........................ 9 (290) 201
CASH AND CASH EQUIVALENTS, END OF PERIOD .................... $1,022 $ 1,013 $ 1,303
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest ................................................. $ 86 $ 105 $ 108
Cash paid for income taxes ............................................ 15 12 4
Fixed assets acquired under capital leases and other financing arrangements ..... 69 6 1
See accompanying notes to consolidated financial statements.
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