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Amazon Earnings Released

Revenue better than expected

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Amazon Earnings Released
[ Business]

Amazon announced its second quarter earnings today, and that includes an increase in sales of 51% (YoY) to $9.91 billion. Not bad. Better than what Wall Street had expected, in fact.

The company vaguely suggests that the Kindle has played a significant role in its continued growth.

CEO Jeff Bezos said, “Low prices, expanding selection, fast delivery and innovation are driving the fastest growth we’ve seen in over a decade. Kindle 3G with Special Offers has quickly become our bestselling Kindle at only $139. Customers love the convenience of a 3G reader — no hunting for or paying for Wi-Fi hotspots. Amazon picks up the tab for the 3G wireless, so you have no monthly payments or annual contracts.”

Operating income was $201 million in the second quarter, compared with $270 million in second quarter 2010. Net income decreased 8% to $191 million.

Here’s the earnings release in its entirety:

SEATTLE, Jul 26, 2011 (BUSINESS WIRE) –

Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its second quarter ended June 30, 2011.

 

Operating cash flow increased 25% to $3.21 billion for the trailing twelve months, compared with $2.56 billion for the trailing twelve months ended June 30, 2010. Free cash flow decreased 8% to $1.83 billion for the trailing twelve months, compared with $1.99 billion for the trailing twelve months ended June 30, 2010.

Common shares outstanding plus shares underlying stock-based awards totaled 468 million on June 30, 2011, compared with 465 million a year ago.

Net sales increased 51% to $9.91 billion in the second quarter, compared with $6.57 billion in second quarter 2010. Excluding the $477 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 44% compared with second quarter 2010.

Operating income was $201 million in the second quarter, compared with $270 million in second quarter 2010. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $28 million.

Net income decreased 8% to $191 million in the second quarter, or $0.41 per diluted share, compared with net income of $207 million, or $0.45 per diluted share, in second quarter 2010. Second quarter 2011 net income was positively impacted by equity-method investment activity of $15 million, including a $49 million gain on the sale of an equity position partially offset by $34 million in losses from equity-method investments.

“Low prices, expanding selection, fast delivery and innovation are driving the fastest growth we’ve seen in over a decade,” said Jeff Bezos, founder and CEO of Amazon.com. “Kindle 3G with Special Offers has quickly become our bestselling Kindle at only $139. Customers love the convenience of a 3G reader — no hunting for or paying for Wi-Fi hotspots. Amazon picks up the tab for the 3G wireless, so you have no monthly payments or annual contracts.”

Highlights

 

  • Sales growth of Kindle devices accelerated in second quarter 2011 compared to first quarter 2011.
  • Since AT&T agreed to sponsor screensavers, Kindle 3G with Special Offers is now our bestselling Kindle device – at only $139. With Kindle 3G, there’s no wireless set up and no paying or hunting for Wi-Fi hotspots. Kindle 3G’s always-on global wireless connectivity means that wherever you are, you can download books and periodicals in less than 60 seconds and start reading instantly. Amazon pays for Kindle’s 3G wireless connectivity, which means the convenience of 3G comes with no monthly fees, data plans or annual contracts.
  • Amazon.com announced the launch of Kindle Textbook Rental, offering students savings of up to 80% off textbook list prices. Tens of thousands of textbooks are available for the 2011 school year. In addition, Kindle Textbook Rental offers the ability to customize rental periods to any length between 30 and 360 days, so students only pay for the specific amount of time they need a book.
  • The U.S. Kindle Store now has more than 950,000 books, including New Releases and 110 of 111 New York Times Bestsellers. Over 800,000 of these books are $9.99 or less, including 65 New York Times Bestsellers. Millions of free, out-of-copyright, pre-1923 books are also available to read on Kindle.
  • The Company launched MyHabit.com, a membership-only fashion destination offering up to 60 percent off list prices of designer and boutique brands in women’s, men’s and children’s departments, with the convenience of free, instant membership; fast, free shipping and free return shipping in the U.S. on eligible items; and fast, $15 international shipping.
  • Amazon.com announced that customers will be able to stream TV shows from CBS’s vast library. Amazon Prime customers will be able to instantly watch thousands of episodes from the CBS library at no additional cost to their membership. With the deal, Amazon will add 2,000 episodes to grow the total number of Prime instant videos to more than 8,000 movies and TV shows. Starting this summer, dozens of CBS shows will also become available to Amazon Instant Video customers.
  • The Company announced three enhancements to Amazon Cloud Drive and Cloud Player: storage plans that include unlimited space for music, free storage for all Amazon MP3 purchases and Cloud Player for Web, now on iPad.
  • Amazon announced that Marketplace sellers can list their products across all its European websites using just one single seller account, allowing sellers to make their inventory available across Amazon.co.uk, Amazon.de, Amazon.fr and Amazon.it. Customers benefit from access to millions of additional products. Fulfillment by Amazon (FBA) sellers can now also store their products in an Amazon fulfillment center in one country and offer them for sale across all of Amazon’s European websites.
  • North America segment sales, representing the Company’s U.S. and Canadian sites, were $5.41 billion, up 51% from second quarter 2010.
  • International segment sales, representing the Company’s U.K., German, Japanese, French, Chinese and Italian sites, were $4.51 billion, up 51% from second quarter 2010. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 36%.
  • Worldwide Media sales grew 27% to $3.66 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 20%.
  • Worldwide Electronics and Other General Merchandise sales grew 69% to $5.89 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 62%.
  • Amazon Web Services (AWS) and SAP announced that AWS has been certified as a global technology partner of SAP. Customers can now deploy a variety of SAP solutions in full production environments including SAP(R) Rapid Deployment and SAP(R) BusinessObjects(TM).
  • AWS announced the availability of Amazon Relational Database Service (RDS) for Oracle databases, allowing customers to easily set up, operate and scale fully managed Oracle databases in the cloud.
  • AWS lowered prices for the fifteenth time in four years by eliminating inbound Internet data transfer costs and reducing outbound data transfer costs.

 

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of July 26, 2011. 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 consumer spending, world events, the rate of growth of the Internet and online commerce and the various factors detailed below.

Third Quarter 2011 Guidance

 

  • Net sales are expected to be between $10.3 billion and $11.1 billion, or to grow between 36% and 47% compared with third quarter 2010.
  • Operating income is expected to be between $20 million and $170 million, or between 93% decline and 37% decline compared with third quarter 2010.
  • This guidance includes approximately $180 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates.

 

A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and will be available for at least three months at www.amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.

These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains and develops commercial agreements, acquisitions and strategic transactions, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services and technologies, system interruptions, government regulation and taxation, payments and fraud. In addition, the current global economic climate amplifies many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.

Our investor relations website is www.amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases and social media postings.

About Amazon.com

Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth’s Biggest Selection. Amazon.com, Inc. seeks to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto & Industrial. Amazon Web Services provides Amazon’s developer customers with access to in-the-cloud infrastructure services based on Amazon’s own back-end technology platform, which developers can use to enable virtually any type of business. Kindle, Kindle 3G, Kindle with Special Offers, Kindle 3G with Special Offers and Kindle DX are the revolutionary portable readers that wirelessly download books, magazines, newspapers, blogs and personal documents to a crisp, high-resolution electronic ink display that looks and reads like real paper. Kindle 3G, Kindle 3G with Special Offers and Kindle DX utilize the same 3G wireless technology as advanced cell phones, so users never need to hunt for a Wi-Fi hotspot. Kindle is the #1 bestselling product across the millions of items sold on Amazon.

Amazon and its affiliates operate websites, including www.amazon.comwww.amazon.co.ukwww.amazon.dewww.amazon.co.jpwww.amazon.frwww.amazon.cawww.amazon.cn, and www.amazon.it. As used herein, “Amazon.com,” “we,” “our” and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.

AMAZON.COM, INC.
Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
Twelve Months Ended
June 30,
2011 2010 2011 2010 2011 2010
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $ 2,641 $ 1,844 $ 3,777 $ 3,444 $ 1,629 $ 1,936
OPERATING ACTIVITIES:
Net income 191 207 391 505 1,038 1,088
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 244 129 446 249 766 456
Stock-based compensation 144 111 254 196 481 386
Other operating expense (income), net 41 25 74 51 129 83
Losses (gains) on sales of marketable securities, net 1 - 3 - 2 (2 )
Other expense (income), net (39 ) (22 ) (2 ) (27 ) (53 ) (31 )
Deferred income taxes 20 (8 ) 35 (28 ) 67 49
Excess tax benefits from stock-based compensation (15 ) (75 ) (61 ) (161 ) (159 ) (196 )
Changes in operating assets and liabilities:
Inventories (274 ) (141 ) 69 180 (1,130 ) (435 )
Accounts receivable, net and other (73 ) (42 ) 286 412 (304 ) (252 )
Accounts payable 114 (81 ) (2,535 ) (1,972 ) 1,835 959
Accrued expenses and other 63 200 (119 ) (161 ) 663 265
Additions to unearned revenue 257 161 467 349 805 990
Amortization of previously unearned revenue (251 ) (214 ) (471 ) (441 ) (935 ) (799 )
Net cash provided by (used in) operating activities 423 250 (1,163 ) (848 ) 3,205 2,561
INVESTING ACTIVITIES:
Purchases of fixed assets, including internal-use software and website development (433 ) (196 ) (731 ) (336 ) (1,374 ) (575 )
Acquisitions, net of cash acquired, and other (469 ) (21 ) (608 ) (40 ) (921 ) (45 )
Sales and maturities of marketable securities and other investments 2,028 1,208 3,967 2,080 6,138 3,354
Purchases of marketable securities and other investments (2,077 ) (1,466 ) (3,189 ) (2,721 ) (6,746 ) (5,661 )
Net cash provided by (used in) investing activities (951 ) (475 ) (561 ) (1,017 ) (2,903 ) (2,927 )
FINANCING ACTIVITIES:
Excess tax benefits from stock-based compensation 15 75 61 161 159 196
Proceeds from long-term debt and other 34 5 123 67 197 133
Repayments of long-term debt, capital lease, and finance lease obligations (140 ) (37 ) (251 ) (98 ) (398 ) (186 )
Net cash provided by (used in) financing activities (91 ) 43 (67 ) 130 (42 ) 143
Foreign-currency effect on cash and cash equivalents 25 (33 ) 61 (80 ) 158 (84 )
Net increase (decrease) in cash and cash equivalents (594 ) (215 ) (1,730 ) (1,815 ) 418 (307 )
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2,047 $ 1,629 $ 2,047 $ 1,629 $ 2,047 $ 1,629
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on long term debt $ 3 $ 3 $ 6 $ 5 $ 12 $ 9
Cash paid for income taxes (net of refunds) (1 ) 43 6 46 35 60
Fixed assets acquired under capital leases 230 83 411 142 673 252
Fixed assets acquired under build-to-suit leases 97 60 166 120 219 191
AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2011 2010 2011 2010
Net sales $ 9,913 $ 6,566 $ 19,770 $ 13,697
Operating expenses (1):
Cost of sales 7,525 4,957 15,133 10,458
Fulfillment 941 582 1,795 1,128
Marketing 341 211 667 412
Technology and content 698 408 1,278 773
General and administrative 166 113 300 210
Other operating expense (income), net 41 25 74 51
Total operating expenses 9,712 6,296 19,247 13,032
Income from operations 201 270 523 665
Interest income 16 12 31 23
Interest expense (15 ) (9 ) (27 ) (16 )
Other income (expense), net 23 24 4 27
Total non-operating income (expense) 24 27 8 34
Income before income taxes 225 297 531 699
Provision for income taxes (49 ) (88 ) (138 ) (189 )
Equity-method investment activity, net of tax 15 (2 ) (2 ) (5 )
Net income $ 191 $ 207 $ 391 $ 505
Basic earnings per share $ 0.42 $ 0.46 $ 0.87 $ 1.13
Diluted earnings per share $ 0.41 $ 0.45 $ 0.85 $ 1.11
Weighted average shares used in computation of earnings per share:
Basic 453 447 452 446
Diluted 460 455 460 455
(1) Includes stock-based compensation as follows:
Fulfillment $ 32 $ 24 $ 56 $ 42
Marketing 10 7 17 12
Technology and content 75 58 136 103
General and administrative 27 22 45 39
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2011 2010 2011 2010
North America
Net sales $ 5,406 $ 3,590 $ 10,871 $ 7,370
Segment operating expenses (1) 5,192 3,390 10,367 6,897
Segment operating income $ 214 $ 200 $ 504 $ 473
International
Net sales $ 4,507 $ 2,976 $ 8,899 $ 6,327
Segment operating expenses (1) 4,335 2,770 8,552 5,888
Segment operating income $ 172 $ 206 $ 347 $ 439
 
Consolidated
Net sales $ 9,913 $ 6,566 $ 19,770 $ 13,697
Segment operating expenses 9,527 6,160 18,919 12,785
Segment operating income 386 406 851 912
Stock-based compensation (144 ) (111 ) (254 ) (196 )
Other operating income (expense), net (41 ) (25 ) (74 ) (51 )
Income from operations 201 270 523 665
Total non-operating income (expense) 24 27 8 34
Provision for income taxes (49 ) (88 ) (138 ) (189 )
Equity-method investment activity, net of tax 15 (2 ) (2 ) (5 )
Net income $ 191 $ 207 $ 391 $ 505
Segment Highlights:
Y/Y net sales growth:
North America 51 % 46 % 48 % 47 %
International 51 35 41 40
Consolidated 51 41 44 44
Y/Y segment operating income growth (decline):
North America 7 % 61 % 7 % 72 %
International (16 ) 15 (21 ) 25
Consolidated (5 ) 34 (7 ) 46
Net sales mix:
North America 55 % 55 % 55 % 54 %
International 45 45 45 46
100 % 100 % 100 % 100 %
(1) Represents operating expenses, excluding stock-based compensation and “Other operating expense (income), net,” which are not allocated to segments
AMAZON.COM, INC.
Supplemental Net Sales Information
(in millions)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2011 2010 2011 2010
North America
Media $ 1,585 $ 1,324 $ 3,470 $ 2,921
Electronics and other general merchandise 3,496 2,090 6,799 4,114
Other (1) 325 176 602 335
Total North America $ 5,406 $ 3,590 $ 10,871 $ 7,370
International
Media $ 2,075 $ 1,550 $ 4,147 $ 3,383
Electronics and other general merchandise 2,398 1,399 4,684 2,887
Other (1) 34 27 68 57
Total International $ 4,507 $ 2,976 $ 8,899 $ 6,327
Consolidated
Media $ 3,660 $ 2,874 $ 7,617 $ 6,304
Electronics and other general merchandise 5,894 3,489 11,483 7,001
Other (1) 359 203 670 392
Total Consolidated $ 9,913 $ 6,566 $ 19,770 $ 13,697
Y/Y Net Sales Growth:
North America:
Media 20 % 15 % 19 % 19 %
Electronics and other general merchandise 67 76 65 74
Other 85 52 80 54
Total North America 51 46 48 47
International:
Media 34 % 20 % 23 % 25 %
Electronics and other general merchandise 71 59 62 64
Other 25 13 20 32
Total International 51 35 41 40
Consolidated:
Media 27 % 18 % 21 % 22 %
Electronics and other general merchandise 69 69 64 70
Other 77 45 71 51
Total Consolidated 51 41 44 44
Y/Y Net Sales Growth Excluding Effect of Exchange Rates:
International:
Media 20 % 21 % 14 % 22 %
Electronics and other general merchandise 53 63 51 62
Other 13 18 12 31
Total International 36 38 31 38
Consolidated:
Media 20 % 18 % 16 % 20 %
Electronics and other general merchandise 62 70 59 69
Other 75 46 70 50
Total Consolidated 44 42 40 42
Consolidated Net Sales Mix:
Media 37 % 44 % 39 % 46 %
Electronics and other general merchandise 59 53 58 51
Other 4 3 3 3
100 % 100 % 100 % 100 %
(1) Includes non-retail activities, such as AWS, miscellaneous marketing and promotional agreements, other seller sites, and co-branded credit card agreements
AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
June 30,
2011
December 31,
2010
June 30,
2010
ASSETS (unaudited) (unaudited)
Current assets:
Cash and cash equivalents $ 2,047 $ 3,777 $ 1,629
Marketable securities 4,308 4,985 3,479
Inventories 3,229 3,202 1,940
Accounts receivable, net and other 1,438 1,587 805
Deferred tax assets 257 196 265
Total current assets 11,279 13,747 8,118
Fixed assets, net 3,470 2,414 1,704
Deferred tax assets 30 22 29
Goodwill 1,909 1,349 1,229
Other assets 1,253 1,265 1,317
Total assets $ 17,941 $ 18,797 $ 12,397
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 5,721 $ 8,051 $ 3,545
Accrued expenses and other 2,324 2,321 1,705
Total current liabilities 8,045 10,372 5,250
Long-term liabilities 2,131 1,561 1,290
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value:
Authorized shares – 500
Issued and outstanding shares – none - - -
Common stock, $0.01 par value:
Authorized shares – 5,000
Issued shares – 471, 468, and 464
Outstanding shares – 454, 451, and 448 5 5 5
Treasury stock, at cost (600 ) (600 ) (600 )
Additional paid-in capital 6,675 6,325 6,056
Accumulated other comprehensive loss (30 ) (190 ) (282 )
Retained earnings 1,715 1,324 678
Total stockholders’ equity 7,765 6,864 5,857
Total liabilities and stockholders’ equity $ 17,941 $ 18,797 $ 12,397
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)
Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Y/Y %
Change
Cash Flows and Shares
Operating cash flow — trailing twelve months (TTM) $ 2,561 $ 2,617 $ 3,495 $ 3,033 $ 3,205 25 %
Purchases of fixed assets (incl. internal-use software & website development) — TTM $ 575 $ 788 $ 979 $ 1,138 $ 1,374 139 %
Free cash flow (operating cash flow less purchases of fixed assets) — TTM $ 1,986 $ 1,829 $ 2,516 $ 1,895 $ 1,831 (8 %)
Free cash flow — TTM Y/Y growth 29 % (5 %) (14 %) (18 %) (8 %) N/A
Invested capital (1) $ 5,820 $ 6,576 $ 7,380 $ 7,931 $ 8,551 N/A
Return on invested capital (2) 34 % 28 % 34 % 24 % 21 % N/A
Common shares and stock-based awards outstanding 465 465 465 466 468 1 %
Common shares outstanding 448 449 451 452 454 1 %
Stock-based awards outstanding 17 16 15 14 15 (13 %)
Stock-based awards outstanding — % of common shares outstanding 3.8 % 3.6 % 3.2 % 3.1 % 3.2 % N/A
Results of Operations
Worldwide (WW) net sales $ 6,566 $ 7,560 $ 12,948 $ 9,857 $ 9,913 51 %
WW net sales — Y/Y growth, excluding F/X 42 % 40 % 37 % 36 % 44 % N/A
WW net sales — TTM $ 28,664 $ 30,776 $ 34,204 $ 36,931 $ 40,278 41 %
WW net sales — TTM Y/Y growth, excluding F/X 38 % 40 % 40 % 39 % 39 % N/A
Operating income $ 270 $ 268 $ 474 $ 322 $ 201 (25 %)
Operating income — Y/Y growth, excluding F/X 77 % 13 % 3 % (20 %) (36 %) N/A
Operating margin — % of WW net sales 4.1 % 3.5 % 3.7 % 3.3 % 2.0 % N/A
Operating income — TTM $ 1,391 $ 1,408 $ 1,406 $ 1,334 $ 1,265 (9 %)
Operating income — TTM Y/Y growth, excluding F/X 65 % 50 % 27 % 7 % (7 %) N/A
Operating margin — TTM % of WW net sales 4.9 % 4.6 % 4.1 % 3.6 % 3.1 % N/A
Net income $ 207 $ 231 $ 416 $ 201 $ 191 (8 %)
Net income per diluted share $ 0.45 $ 0.51 $ 0.91 $ 0.44 $ 0.41 (9 %)
Net income — TTM $ 1,088 $ 1,120 $ 1,152 $ 1,054 $ 1,038 (5 %)
Net income per diluted share — TTM $ 2.42 $ 2.47 $ 2.53 $ 2.30 $ 2.26 (6 %)
Segments
North America Segment:
Net sales $ 3,590 $ 4,126 $ 7,211 $ 5,465 $ 5,406 51 %
Net sales — Y/Y growth, excluding F/X 46 % 45 % 45 % 45 % 50 % N/A
Net sales — TTM $ 15,168 $ 16,452 $ 18,707 $ 20,392 $ 22,208 46 %
Operating income $ 200 $ 186 $ 295 $ 290 $ 214 7 %
Operating margin — % of North America net sales 5.6 % 4.5 % 4.1 % 5.3 % 4.0 % N/A
Operating income — TTM $ 907 $ 937 $ 955 $ 972 $ 986 9 %
Operating income — TTM Y/Y growth, excluding F/X 84 % 67 % 35 % 17 % 9 % N/A
Operating margin — TTM % of North America net sales 6.0 % 5.7 % 5.1 % 4.8 % 4.4 % N/A
International Segment:
Net sales $ 2,976 $ 3,434 $ 5,737 $ 4,392 $ 4,507 51 %
Net sales — Y/Y growth, excluding F/X 38 % 35 % 29 % 27 % 36 % N/A
Net sales — TTM $ 13,496 $ 14,324 $ 15,497 $ 16,539 $ 18,070 34 %
Net sales — TTM % of WW net sales 47 % 47 % 45 % 45 % 45 % N/A
Operating income $ 206 $ 215 $ 327 $ 175 $ 172 (16 %)
Operating margin — % of International net sales 6.9 % 6.2 % 5.7 % 4.0 % 3.8 % N/A
Operating income — TTM $ 952 $ 973 $ 981 $ 922 $ 888 (7 %)
Operating income — TTM Y/Y growth, excluding F/X 28 % 23 % 20 % 4 % (7 %) N/A
Operating margin — TTM % of International net sales 7.1 % 6.8 % 6.3 % 5.6 % 4.9 % N/A
Consolidated Segments:
Operating expenses (3) $ 6,160 $ 7,159 $ 12,326 $ 9,392 $ 9,527 55 %
Operating expenses — TTM (3) $ 26,805 $ 28,866 $ 32,268 $ 35,037 $ 38,404 43 %
Operating income $ 406 $ 401 $ 622 $ 465 $ 386 (5 %)
Operating margin — % of Consolidated sales 6.2 % 5.3 % 4.8 % 4.7 % 3.9 % N/A
Operating income — TTM $ 1,859 $ 1,910 $ 1,936 $ 1,894 $ 1,874 1 %
Operating income — TTM Y/Y growth, excluding F/X 51 % 42 % 25 % 10 % 1 % N/A
Operating margin — TTM % of Consolidated net sales 6.5 % 6.2 % 5.7 % 5.1 % 4.7 % N/A
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except inventory turnover, accounts payable days and employee data)
(unaudited)
Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Y/Y %
Change
Supplemental
Supplemental North America Segment Net Sales:
Media $ 1,324 $ 1,591 $ 2,370 $ 1,885 $ 1,585 20 %
Media — Y/Y growth, excluding F/X 15 % 12 % 13 % 18 % 19 % N/A
Media — TTM $ 6,432 $ 6,610 $ 6,881 $ 7,170 $ 7,430 16 %
Electronics and other general merchandise $ 2,090 $ 2,326 $ 4,558 $ 3,303 $ 3,496 67 %
Electronics and other general merchandise — Y/Y growth, excluding F/X 76 % 80 % 71 % 63 % 67 % N/A
Electronics and other general merchandise — TTM $ 8,069 $ 9,103 $ 10,998 $ 12,277 $ 13,683 70 %
Electronics and other general merchandise — TTM % of North America net sales 53 % 55 % 59 % 60 % 62 % N/A
Other $ 176 $ 209 $ 283 $ 277 $ 325 85 %
Other — TTM $ 668 $ 739 $ 828 $ 945 $ 1,095 64 %
Supplemental International Segment Net Sales:
Media $ 1,550 $ 1,759 $ 2,865 $ 2,073 $ 2,075 34 %
Media — Y/Y growth, excluding F/X 21 % 18 % 13 % 9 % 20 % N/A
Media — TTM $ 7,480 $ 7,723 $ 8,007 $ 8,247 $ 8,772 17 %
Electronics and other general merchandise $ 1,399 $ 1,644 $ 2,834 $ 2,285 $ 2,398 71 %
Electronics and other general merchandise — Y/Y growth, excluding F/X 63 % 60 % 50 % 49 % 53 % N/A
Electronics and other general merchandise — TTM $ 5,899 $ 6,478 $ 7,365 $ 8,162 $ 9,162 55 %
Electronics and other general merchandise — TTM % of International net sales 44 % 45 % 48 % 49 % 51 % N/A
Other $ 27 $ 31 $ 38 $ 34 $ 34 25 %
Other — TTM $ 117 $ 123 $ 125 $ 130 $ 136 17 %
Supplemental Worldwide Net Sales:
Media $ 2,874 $ 3,350 $ 5,235 $ 3,958 $ 3,660 27 %
Media — Y/Y growth, excluding F/X 18 % 15 % 13 % 13 % 20 % N/A
Media — TTM $ 13,912 $ 14,333 $ 14,888 $ 15,417 $ 16,202 16 %
Electronics and other general merchandise $ 3,489 $ 3,970 $ 7,392 $ 5,588 $ 5,894 69 %
Electronics and other general merchandise — Y/Y growth, excluding F/X 70 % 71 % 62 % 57 % 62 % N/A
Electronics and other general merchandise — TTM $ 13,968 $ 15,581 $ 18,363 $ 20,439 $ 22,845 64 %
Electronics and other general merchandise — TTM % of WW net sales 49 % 51 % 54 % 55 % 57 % N/A
Other $ 203 $ 240 $ 321 $ 311 $ 359 77 %
Other — TTM $ 785 $ 862 $ 953 $ 1,075 $ 1,231 57 %
Balance Sheet
Cash and marketable securities (4) $ 5,419 $ 6,123 $ 8,919 $ 7,019 $ 6,503 20 %
Inventory, net — ending $ 1,940 $ 2,515 $ 3,202 $ 2,888 $ 3,229 66 %
Inventory turnover, average — TTM 12.5 11.8 11.4 11.6 11.3 (9 %)
Fixed assets, net $ 1,704 $ 2,099 $ 2,414 $ 2,902 $ 3,470 104 %
Accounts payable — ending $ 3,545 $ 4,614 $ 8,051 $ 5,540 $ 5,721 61 %
Accounts payable days — ending 65 73 72 66 69 6 %
Other
WW shipping revenue $ 239 $ 270 $ 437 $ 330 $ 331 39 %
WW shipping costs $ 487 $ 576 $ 999 $ 786 $ 820 68 %
WW net shipping costs $ 248 $ 306 $ 562 $ 456 $ 489 97 %
WW net shipping costs — % of WW net sales 3.8 % 4.0 % 4.3 % 4.6 % 4.9 % N/A
Employees (full-time and part-time; excludes contractors & temporary personnel) 28,300 31,200 33,700 37,900 43,200 53 %
(1) Average Total Assets minus Current Liabilities (excluding current portion of Long Term Debt) over five quarter ends.
(2) TTM Free Cash Flow divided by Invested Capital.
(3) Represents cost of sales, fulfillment, marketing, technology and content, and general and administrative operating expenses, excluding stock-based compensation.
(4) Includes restricted cash, classified within “Other Assets” on our consolidated balance sheet, of: $311 million in Q2 2010, $238 million in Q3 2010, $157 million in Q4 2010, $138 million in Q1 2011, $148 million in Q2 2011.

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  • http://www.profitwithforextrading.com Emma

    Hmm let’s see what next year brings now they have cancelled so many affiliate accounts. Boycott? Yes indeed!