Amazon.com 2008 Annual Report Download - page 27

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Item 6. Selected Consolidated Financial Data
The following selected consolidated financial data should be read in conjunction with the consolidated
financial statements and the notes thereto in Item 8 of Part II, “Financial Statements and Supplementary Data,”
and the information contained in Item 7 of Part II, “Management’s Discussion and Analysis of Financial
Condition and Results of Operations.” Historical results are not necessarily indicative of future results.
Year Ended December 31,
2008 2007 2006 2005 2004
(in millions, except per share data)
Income Statement:
Net sales ........................................... $19,166 $14,835 $10,711 $8,490 $6,921
Income from operations ............................... 842 655 389 432 440
Income before change in accounting principle ............. 645 476 190 333 588
Cumulative effect of change in accounting principle ........ ———26—
Net income ......................................... 645 476 190 359 588
Basic earnings per share (1):
Prior to cumulative effect of change in accounting principle . . $ 1.52 $ 1.15 $ 0.46 $ 0.81 $ 1.45
Cumulative effect of change in accounting principle ........ — — — 0.06 —
Basic earnings per share (1) ............................ $ 1.52 $ 1.15 $ 0.46 $ 0.87 $ 1.45
Diluted earnings per share (1):
Prior to cumulative effect of change in accounting principle . . $ 1.49 $ 1.12 $ 0.45 $ 0.78 $ 1.39
Cumulative effect of change in accounting principle ........ — — — 0.06 —
Diluted earnings per share (1) .......................... $ 1.49 $ 1.12 $ 0.45 $ 0.84 $ 1.39
Weighted average shares used in computation of earnings per
share:
Basic .............................................. 423 413 416 412 406
Diluted ............................................ 432 424 424 426 425
Cash Flow Statement:
Net cash provided by operating activities ................. $ 1,697 $ 1,405 $ 702 $ 733 $ 566
Purchases of fixed assets, including internal-use software and
website development ............................... (333) (224) (216) (204) (89)
Free cash flow (2) .................................... $ 1,364 $ 1,181 $ 486 $ 529 $ 477
December 31,
2008 2007 2006 2005 2004
(in millions)
Balance Sheet:
Total assets ......................................... $ 8,314 $ 6,485 $ 4,363 $3,696 $3,248
Long-term debt ...................................... 409 1,282 1,247 1,480 1,835
(1) For further discussion of earnings per share, see Item 8 of Part II, “Financial Statements and Supplementary
Data—Note 1—Description of Business and Accounting Policies.”
(2) Free cash flow, a non-GAAP financial measure, is defined as net cash provided by operating activities less
purchases of fixed assets, including capitalized internal-use software and website development, both of
which are presented on our consolidated statements of cash flows. See Item 7 of Part II, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Non-
GAAP Financial Measures.”
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