Amazon.com 2011 Annual Report Download - page 32

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strengthen our financial position. The sale of additional equity or convertible debt securities would likely be
dilutive to our shareholders. In addition, we will, from time to time, consider the acquisition of, or investment in,
complementary businesses, products, services, and technologies, which might affect our liquidity requirements or
cause us to issue additional equity or debt securities. There can be no assurance that additional lines-of-credit or
financing instruments will be available in amounts or on terms acceptable to us, if at all.
Results of Operations
We have organized our operations into two principal segments: North America and International. We
present our segment information along the same lines that our chief executive reviews our operating results in
assessing performance and allocating resources.
Net Sales
Net sales include product and services sales. Product sales represent revenue from the sale of products and
related shipping fees and digital content where we are the seller of record. Services sales represent third-party
seller fees earned (including commissions) and related shipping fees, digital content subscriptions, and non-retail
activities. Net sales information is as follows:
Year Ended December 31,
2011 2010 2009
(in millions)
Net Sales:
North America ................................................. $26,705 $18,707 $12,828
International ................................................... 21,372 15,497 11,681
Consolidated ............................................... $48,077 $34,204 $24,509
Year-over-year Percentage Growth:
North America ................................................. 43% 46% 25%
International ................................................... 38 33 31
Consolidated ............................................... 41 40 28
Year-over-year Percentage Growth, excluding effect of exchange rates:
North America ................................................. 43% 46% 26%
International ................................................... 31 34 33
Consolidated ............................................... 37 40 29
Net Sales Mix:
North America ................................................. 56% 55% 52%
International ................................................... 44 45 48
Consolidated ............................................... 100% 100% 100%
Sales increased 41%, 40%, and 28% in 2011, 2010, and 2009. Changes in currency exchange rates
positively (negatively) affected net sales by $1.1 billion, $(86) million, and $(182) million for 2011, 2010, and
2009. For a discussion of the effect on sales growth of exchange rates, see “Effect of Exchange Rates” below.
The North America sales growth rate was 43%, 46%, and 25% in 2011, 2010, and 2009. The sales growth in
each year primarily reflects increased unit sales. Increased unit sales were driven largely by our continued efforts
to reduce prices for our customers, including from our shipping offers, by a larger base of sales in faster growing
categories such as electronics and other general merchandise, by increased in-stock inventory availability, and by
increased selection of product offerings. Additionally, North America sales growth reflects increased AWS
activity.
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