Amazon.com 2007 Annual Report Download - page 53

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AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Year Ended December 31,
2007 2006 2005
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD .............. $1,022 $ 1,013 $ 1,303
OPERATING ACTIVITIES:
Net income .......................................................... 476 190 359
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 ............................... 246 205 121
Stock-based compensation ......................................... 185 101 87
Other operating expense, net ........................................ 9 10 7
Losses (gains) on sales of marketable securities, net ..................... 1 (2) (1)
Remeasurements and other ......................................... 12 (6) (37)
Deferred income taxes ............................................. (99) 22 70
Excess tax benefits from stock-based compensation ...................... (257) (102) (7)
Cumulative effect of change in accounting principle ..................... — — (26)
Changes in operating assets and liabilities:
Inventories ...................................................... (303) (282) (104)
Accounts receivable, net and other ................................... (255) (103) (84)
Accounts payable ................................................. 928 402 274
Accrued expenses and other ........................................ 429 241 67
Additions to unearned revenue ...................................... 244 206 156
Amortization of previously unearned revenue .......................... (211) (180) (149)
Net cash provided by operating activities .......................... 1,405 702 733
INVESTING ACTIVITIES:
Purchases of fixed assets, including internal-use software and website
development ....................................................... (224) (216) (204)
Acquisitions, net of cash acquired, and other ............................... (75) (32) (24)
Sales and maturities of marketable securities and other investments ............. 1,271 1,845 836
Purchases of marketable securities and other investments ..................... (930) (1,930) (1,386)
Net cash provided by (used in) investing activities ................... 42 (333) (778)
FINANCING ACTIVITIES:
Proceeds from exercises of stock options .................................. 91 35 59
Excess tax benefits from stock-based compensation .......................... 257 102 7
Common stock repurchased ............................................. (248) (252) —
Proceeds from long-term debt and other ................................... 24 98 11
Repayments of long-term debt and capital lease obligations ................... (74) (383) (270)
Net cash provided by (used in) financing activities .................. 50 (400) (193)
Foreign-currency effect on cash and cash equivalents ........................ 20 40 (52)
Net increase (decrease) in cash and cash equivalents ......................... 1,517 9 (290)
CASH AND CASH EQUIVALENTS, END OF PERIOD ..................... $2,539 $ 1,022 $ 1,013
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest .................................................. $ 67 $ 86 $ 105
Cash paid for income taxes ............................................. 24 15 12
Fixed assets acquired under capital leases and other financing arrangements ...... 74 69 6
Fixed assets acquired under build-to-suit leases ............................. 15 — —
See accompanying notes to consolidated financial statements.
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