Amazon.com 2008 Annual Report Download - page 53

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AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
Year Ended December 31,
2008 2007 2006
Net sales .......................................................... $19,166 $14,835 $10,711
Cost of sales ....................................................... 14,896 11,482 8,255
Gross profit ........................................................ 4,270 3,353 2,456
Operating expenses (1):
Fulfillment .................................................... 1,658 1,292 937
Marketing ..................................................... 482 344 263
Technology and content .......................................... 1,033 818 662
General and administrative ....................................... 279 235 195
Other operating expense (income), net .............................. (24) 9 10
Total operating expenses ..................................... 3,428 2,698 2,067
Income from operations .............................................. 842 655 389
Interest income ..................................................... 83 90 59
Interest expense .................................................... (71) (77) (78)
Other income (expense), net ........................................... 47 (8) 7
Total non-operating income (expense) ............................... 59 5 (12)
Income before income taxes ........................................... 901 660 377
Provision for income taxes ............................................ (247) (184) (187)
Equity-method investment activity, net of tax ............................. (9) — —
Net income ........................................................ $ 645 $ 476 $ 190
Basic earnings per share .............................................. $ 1.52 $ 1.15 $ 0.46
Diluted earnings per share ............................................ $ 1.49 $ 1.12 $ 0.45
Weighted average shares used in computation of earnings per share:
Basic ......................................................... 423 413 416
Diluted ....................................................... 432 424 424
(1) Includes stock-based compensation as follows:
Fulfillment .................................................... $ 61 $ 39 $ 24
Marketing ..................................................... 13 8 4
Technology and content .......................................... 151 103 54
General and administrative ....................................... 50 35 19
See accompanying notes to consolidated financial statements.
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