Amazon.com 2015 Annual Report Download - page 43

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33
results, and therefore, excluding it from operating expenses is consistent with our segment presentation in our footnotes to the
consolidated financial statements.
Operating expenses without stock-based compensation has limitations since it does not include all expenses primarily
related to our workforce. More specifically, if we did not pay out a portion of our compensation in the form of stock-based
compensation, our cash salary expense included in the “Fulfillment,” “Marketing,” “Technology and content,” and “General
and administrative” line items would be higher.
Effect of Foreign Exchange Rates
Information regarding the effect of foreign exchange rates, versus the U.S. Dollar, on our consolidated statements of
operations is provided to show reported period operating results had the foreign exchange rates remained the same as those in
effect in the comparable prior year period.
Guidance
We provided guidance on January 28, 2016, in our earnings release furnished on Form 8-K as set forth below. These
forward-looking statements reflect Amazon.com’s expectations as of January 28, 2016, and are subject to substantial
uncertainty. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in
foreign exchange rates, changes in global economic conditions and customer spending, world events, the rate of growth of the
Internet and online commerce, as well as those outlined in Item 1A of Part I, “Risk Factors.”
First Quarter 2016 Guidance
• Net sales are expected to be between $26.5 billion and $29.0 billion, or to grow between 17% and 28%
compared with first quarter 2015.
• Operating income is expected to be between $100 million and $700 million, compared with $255 million in first
quarter 2015.
• This guidance includes approximately $600 million for stock-based compensation and other operating expense
(income), net. It assumes, among other things, that no additional business acquisitions, investments,
restructurings, or legal settlements are concluded and that there are no further revisions to stock-based
compensation estimates.