Amazon crushes estimates in Q1, posts $130 million profit on $13.18 billion in sales

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Amazon on Thursday reported its financial results for the first quarter of 2012. Analysts were looking for a profit of $0.07 per share on $12.86 billion in sales, and Amazon posted earnings of $0.28 per share on revenue of $13.18 billion, crushing expectations. The retailer netted $0.38 per share on revenue of $17.4 billion this past holiday quarter, and $0.44 per share on $9.86 billion in sales during the first quarter last year. The nationwide retailer’s stock had been up and down all week as Wall Street’s concerns over margins continued to rattle investors. Amazon’s operating margin fell 3.7% to 1.5% of global revenue in the fourth quarter and in the first quarter a year ago, Amazon’s margins sat at 3.3%. In the first quarter of 2012, Amazon’s operating margins stayed flat at 1.5%. For the second quarter, Amazon forecasts a profit of $40 million, up from a loss of $260 million in the second quarter last year, on revenue of between $11.9 billion and $13.3 billion. Amazon’s stock was up more than 12% percent during after-hours trading on Thursday. The company’s full press release follows below.

AMAZON.COM ANNOUNCES FIRST QUARTER SALES UP 34% TO $13.18 BILLION; 16 OF THE TOP 100 BESTSELLING TITLES ARE EXCLUSIVE TO THE KINDLE STORE

SEATTLE–(BUSINESS WIRE)–Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its first quarter ended March 31, 2012.
“I’m excited to announce that we now have more than 130,000 new, in-copyright books that are exclusive to the Kindle Store – you won’t find them anywhere else. They include many of our top bestsellers – in fact, 16 of our top 100 bestselling titles are exclusive to our store”
Operating cash flow increased 1% to $3.05 billion for the trailing twelve months, compared with $3.03 billion for the trailing twelve months ended March 31, 2011. Free cash flow decreased 39% to $1.15 billion for the trailing twelve months, compared with $1.90 billion for the trailing twelve months ended March 31, 2011.
Common shares outstanding plus shares underlying stock-based awards totaled 464 million on March 31, 2012, compared with 466 million a year ago. During the quarter, the Company repurchased 5.3 million shares, or $960 million, under its previously announced authorization to repurchase up to $2 billion of the Company’s common stock.
Net sales increased 34% to $13.18 billion in the first quarter, compared with $9.86 billion in first quarter 2011. Excluding the $56 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 34% compared with first quarter 2011.
Operating income was $192 million in the first quarter, compared with $322 million in first quarter 2011. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $4 million.
Net income decreased 35% to $130 million in the first quarter, or $0.28 per diluted share, compared with net income of $201 million, or $0.44 per diluted share, in first quarter 2011.
“I’m excited to announce that we now have more than 130,000 new, in-copyright books that are exclusive to the Kindle Store – you won’t find them anywhere else. They include many of our top bestsellers – in fact, 16 of our top 100 bestselling titles are exclusive to our store,” said Jeff Bezos, founder and CEO of Amazon.com. “If you’re an Amazon Prime member, you don’t even need to buy these titles – you can borrow them for free – with no due dates – from our revolutionary Kindle Owners’ Lending Library. The Kindle Owners’ Lending Library is heavily used by Kindle owners, and it has extremely unusual features that both authors and customers love. Every time you borrow a book, the author gets paid – and we have an inexhaustible supply of each title so you never have to wait in a queue for the book you want. Kindle is the bestselling e-reader in the world by far, and I assure you we’ll keep working hard so that the Kindle Store remains yet another reason to buy a Kindle!”
Highlights

• Kindle Fire remains the #1 bestselling, most gifted, and most wished for product across the millions of items available on Amazon.com since launch. In the first quarter, 9 out of 10 of the top sellers on Amazon.com were digital products – Kindle, Kindle books, movies, music and apps.
• Amazon launched Kindle Touch Wi-Fi and Kindle Touch 3G on Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.it, and Amazon.es. The full line of Kindle e-ink readers is now available in over 175 countries around the world. Kindle Touch 3G is the most full-featured e-reader with an easy to use touchscreen and the unparalleled convenience of free 3G – no hunting for Wi-Fi spots, simply think of a book and download it. Kindle remains the bestseller on Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.it and Amazon.es since their launches.
• Amazon introduced a new version of its popular Kindle for iPad app, which is the #5 free iPad app of all time and the #1 free books app on iPad. Millions of customers are using the new Kindle for iPad app, which is optimized for the high resolution display of the newest iPad.
• Amazon announced an In-App Purchasing service, making it easy for Amazon Appstore developers to offer digital content and subscriptions for purchase within apps and games that are available on millions of Kindle Fires and other Android devices. Amazon Appstore’s In-App Purchasing service is simple for developers to integrate and helps monetize their apps and games, while offering customers a seamless and secure 1-Click purchasing experience.
• Amazon.com announced the launch of the Amazon Instant Video app for PlayStation 3 (PS3), making the PS3 system the first video game console system to offer Amazon Instant Video, and allowing PS3 users to stream Prime Instant Videos and rent or buy the latest movies and TV episodes directly from their PS3. Customers can also access Amazon Instant Video and Prime Instant Video from Kindle Fire, Mac or PC, or on a TV using either a compatible connected device such as a Blu-ray player or a Roku or directly on compatible Smart TVs.
• Amazon continued to expand its catalog of title offerings for Prime Instant Video, announcing licensing agreements with Discovery Communications and Viacom. Among the programs added are Discovery Channel’s Dirty Jobs, TLC’s Say Yes To The Dress and Animal Planet’s Whale Wars, as well as thousands of TV episodes from MTV, Comedy Central, Nickelodeon, TV Land, Spike, VH1, BET, CMT and Logo. These deals bring the total number of Prime Instant Videos to more than 17,000 movies and TV episodes from partners such as CBS, Fox, NBCUniversal, Sony, Warner Bros., PBS, Disney-ABC and many more.
• North America segment sales, representing the Company’s U.S. and Canadian sites, were $7.43 billion, up 36% from first quarter 2011.
• International segment sales, representing the Company’s U.K., German, Japanese, French, Chinese, Italian and Spanish sites, were $5.76 billion, up 31% from first quarter 2011. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 32%.
• Worldwide Media sales grew 19% to $4.71 billion. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 19%.
• Worldwide Electronics and Other General Merchandise sales grew 43% to $7.97 billion. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 43%.
• Amazon Web Services (AWS) announced that Amazon DynamoDB – the fastest growing AWS service ever – is now available in both the EU (Ireland) and Asia Pacific (Tokyo) Regions. Amazon DynamoDB is a fully managed NoSQL database service that provides extremely fast and predictable performance with seamless scalability.
• AWS lowered prices for the 19th time in five years by reducing reserved instance prices for Amazon EC2 and Amazon RDS, as well as reducing on-demand pricing for Amazon EC2, Amazon RDS, and Amazon ElastiCache.
• AWS launched AWS Marketplace, an online store that makes it easy for customers to find, compare, and immediately start using the software and services they need to build software systems and products, and run their businesses. With AWS Marketplace, software and SaaS providers with offerings that run in the AWS Cloud can benefit from increased awareness, simplified deployment, and automated billing. AWS Marketplace brings the same simple, trusted, and secure online shopping experience that customers enjoy on Amazon.com to software built for the AWS platform, streamlining the process of doing research and purchasing software.

Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as of April 26, 2012, and exclude financial results of the Kiva Systems, Inc. acquisition which we expect to close in second quarter 2012. 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.
Second Quarter 2012 Guidance

• Net sales are expected to be between $11.9 billion and $13.3 billion, or to grow between 20% and 34% compared with second quarter 2011.
• Operating income (loss) is expected to be between $(260) million and $40 million, or between 229% decline and 80% decline compared with second quarter 2011.
• This guidance includes approximately $260 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. The new latest generation Kindle is the lightest, most compact Kindle ever and features the same 6-inch, most advanced electronic ink display that reads like real paper even in bright sunlight. Kindle Touch is a new addition to the Kindle family with an easy-to-use touch screen that makes it easier than ever to turn pages, search, shop, and take notes – still with all the benefits of the most advanced electronic ink display. Kindle Touch 3G is the top of the line e-reader and offers the same new design and features of Kindle Touch, with the unparalleled added convenience of free 3G. Kindle Fire is the Kindle for movies, TV episodes, music, books, magazines, apps, games and web browsing with all the content, free storage in the Amazon Cloud, Whispersync, Amazon Silk (Amazon’s new revolutionary cloud-accelerated web browser), vibrant color touch screen, and powerful dual-core processor.
Amazon and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, www.amazon.cn,www.amazon.it, and www.amazon.es. 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 EndedTwelve Months EndedMarch 31,March 31,2012201120122011CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD$5,269$3,777$2,641$1,844OPERATING ACTIVITIES:Net income1302015611,054Adjustments to reconcile net income to net cash from operating activities:Depreciation of fixed assets, including internal-use software and website development, and other amortization4572021,338652Stock-based compensation160110605448Other operating expense (income), net4633168112Losses (gains) on sales of marketable securities, net(2)2(8)1Other expense (income), net1537(78)(36)Deferred income taxes(38)158338Excess tax benefits from stock-based compensation(40)(46)(56)(219)Changes in operating assets and liabilities:Inventories747343(1,374)(997)Accounts receivable, net and other746359(479)(170)Accounts payable(4,258)(2,649)1,3881,641Accrued expenses and other(529)(183)721697Additions to unearned revenue3972101,252709Amortization of previously unearned revenue(269)(220)(1,070)(897)Net cash provided by (used in) operating activities(2,438)(1,586)3,0513,033INVESTING ACTIVITIES:Purchases of fixed assets, including internal-use software and website development(386)(298)(1,899)(1,138)Acquisitions, net of cash acquired, and other(50)(139)(615)(473)Sales and maturities of marketable securities and other investments1,7381,9396,6415,318Purchases of marketable securities and other investments(852)(1,112)(5,997)(6,135)Net cash provided by (used in) investing activities450390(1,870)(2,428)FINANCING ACTIVITIES:Excess tax benefits from stock-based compensation404656219Common stock repurchased(960)-(1,237)-Proceeds from long-term debt and other6889154168Repayments of long-term debt, capital lease, and finance lease obligations(153)(111)(483)(295)Net cash provided by (used in) financing activities(1,005)24(1,510)92Foreign-currency effect on cash and cash equivalents1236(24)100Net increase (decrease) in cash and cash equivalents(2,981)(1,136)(353)797CASH AND CASH EQUIVALENTS, END OF PERIOD$2,288$2,641$2,288$2,641SUPPLEMENTAL CASH FLOW INFORMATION:Cash paid for interest on long term debt$6$3$17$12Cash paid for income taxes (net of refunds)1974579Fixed assets acquired under capital leases149181721526Fixed assets acquired under build-to-suit leases1769207182AMAZON.COM, INC.Consolidated Statements of Operations(in millions, except per share data)(unaudited)Three Months EndedMarch 31,20122011Net product sales (1)$11,249$8,698Net services sales (2)1,9361,159Net sales13,1859,857Operating expenses (3):Cost of sales10,0277,608Fulfillment1,295855Marketing480327Technology and content945579General and administrative200133Other operating expense (income), net4633Total operating expenses12,9939,535Income from operations192322Interest income1215Interest expense(21)(12)Other income (expense), net(99)(18)Total non-operating income (expense)(108)(15)Income before income taxes84307Provision for income taxes(43)(89)Equity-method investment activity, net of tax89(17)Net income$130$201Basic earnings per share$0.29$0.44Diluted earnings per share$0.28$0.44Weighted average shares used in computation of earnings per share:Basic453451Diluted460459(1) Represents revenue from the sale of products and related shipping fees and digital content where we are the seller of record.(2) Represents third-party seller fees earned (including commissions) and related shipping fees, digital content subscriptions, and non-retail activities.(3) Includes stock-based compensation as follows:Fulfillment$37$24Marketing127Technology and content8561General and administrative2618AMAZON.COM, INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(in millions)(unaudited)Three Months EndedMarch 31,20122011Net income$130$201Other comprehensive income:Foreign currency translation adjustments, net of tax of $(38) and $(7)137135Change in unrealized gains on available-for-sale securities, net of tax of $(2) and $(5)5(11)Total other comprehensive income142124Comprehensive income$272$325AMAZON.COM, INC.Segment Information(in millions)(unaudited)Three Months EndedMarch 31,20122011North AmericaNet sales$7,427$5,465Segment operating expenses (1)7,0785,175Segment operating income$349$290InternationalNet sales$5,758$4,392Segment operating expenses (1)5,7094,217Segment operating income$49$175ConsolidatedNet sales$13,185$9,857Segment operating expenses (1)12,7879,392Segment operating income398465Stock-based compensation(160)(110)Other operating income (expense), net(46)(33)Income from operations192322Total non-operating income (expense)(108)(15)Provision for income taxes(43)(89)Equity-method investment activity, net of tax89(17)Net income$130$201Segment Highlights:Y/Y net sales growth:North America36%45%International3131Consolidated3438Y/Y segment operating income growth (decline):North America20%6%International(72)(25)Consolidated(15)(8)Net sales mix:North America56%55%International4445100%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 EndedMarch 31,20122011North AmericaMedia$2,197$1,885Electronics and other general merchandise4,7723,303Other (1)458277Total North America$7,427$5,465InternationalMedia$2,513$2,073Electronics and other general merchandise3,2032,285Other (1)4234Total International$5,758$4,392ConsolidatedMedia$4,710$3,958Electronics and other general merchandise7,9755,588Other (1)500311Total Consolidated$13,185$9,857Y/Y Net Sales Growth:North America:Media17%18%Electronics and other general merchandise4463Other6674Total North America3645International:Media21%13%Electronics and other general merchandise4054Other2415Total International3131Consolidated:Media19%15%Electronics and other general merchandise4359Other6165Total Consolidated3438Y/Y Net Sales Growth Excluding Effect of Exchange Rates:International:Media22%9%Electronics and other general merchandise4249Other2612Total International3227Consolidated:Media19%13%Electronics and other general merchandise4357Other6164Total Consolidated3436Consolidated Net Sales Mix:Media36%40%Electronics and other general merchandise6057Other43100%100%(1) Includes non-retail activities, such as AWS, miscellaneous marketing and promotional activities, co-branded credit card agreements, and other seller sites.AMAZON.COM, INC.Consolidated Balance Sheets(in millions, except per share data)March 31,December 31,20122011ASSETS(unaudited)Current assets:Cash and cash equivalents$2,288$5,269Marketable securities3,4274,307Inventories4,2554,992Accounts receivable, net and other1,8132,571Deferred tax assets371351Total current assets12,15417,490Fixed assets, net4,6534,417Deferred tax assets2728Goodwill1,9701,955Other assets1,5351,388Total assets$20,339$25,278LIABILITIES AND STOCKHOLDERS’ EQUITYCurrent liabilities:Accounts payable$6,886$11,145Accrued expenses and other3,6023,751Total current liabilities10,48814,896Long-term liabilities2,5802,625Commitments and contingenciesStockholders’ equity:Preferred stock, $0.01 par value:Authorized shares — 500Issued and outstanding shares — none--Common stock, $0.01 par value:Authorized shares — 5,000Issued shares — 474 and 473Outstanding shares — 450 and 45555Treasury stock, at cost(1,837)(877)Additional paid-in capital7,1926,990Accumulated other comprehensive loss(174)(316)Retained earnings2,0851,955Total stockholders’ equity7,2717,757Total liabilities and stockholders’ equity$20,339$25,278AMAZON.COM, INC.Supplemental Financial Information and Business Metrics(in millions, except per share data)(unaudited)Y/Y %Q1 2011Q2 2011Q3 2011Q4 2011Q1 2012ChangeCash Flows and SharesOperating cash flow — trailing twelve months (TTM)$3,033$3,205$3,114$3,903$3,0511%Purchases of fixed assets (incl. internal-use software & website development) — TTM$1,138$1,374$1,589$1,811$1,89967%Free cash flow (operating cash flow less purchases of fixed assets) — TTM$1,895$1,831$1,525$2,092$1,152(39%)Free cash flow — TTM Y/Y growth(18%)(8%)(17%)(17%)(39%)N/AInvested capital (1)$7,931$8,551$9,147$9,680$10,006N/AReturn on invested capital (2)24%21%17%22%12%N/ACommon shares and stock-based awards outstanding466468469468464-Common shares outstanding452454455455450-Stock-based awards outstanding1415141413(4%)Stock-based awards outstanding — % of common shares outstanding3.1%3.2%3.2%3.0%2.9%N/AResults of OperationsWorldwide (WW) net sales$9,857$9,913$10,876$17,431$13,18534%WW net sales — Y/Y growth, excluding F/X36%44%39%34%34%N/AWW net sales — TTM$36,931$40,278$43,594$48,077$51,40439%WW net sales — TTM Y/Y growth, excluding F/X39%39%39%37%37%N/AOperating income$322$201$79$260$192(40%)Operating income — Y/Y growth, excluding F/X(20%)(36%)(77%)(48%)(38%)N/AOperating margin — % of WW net sales3.3%2.0%0.7%1.5%1.5%N/AOperating income — TTM$1,334$1,265$1,076$862$732(45%)Operating income — TTM Y/Y growth, excluding F/X7%(7%)(25%)(44%)(50%)N/AOperating margin — TTM % of WW net sales3.6%3.1%2.5%1.8%1.4%N/ANet income$201$191$63$177$130(35%)Net income per diluted share$0.44$0.41$0.14$0.38$0.28(35%)Net income — TTM$1,054$1,038$871$631$561(47%)Net income per diluted share — TTM$2.30$2.26$1.89$1.37$1.22(47%)SegmentsNorth America Segment:Net sales$5,465$5,406$5,932$9,902$7,42736%Net sales — Y/Y growth, excluding F/X45%50%44%37%36%N/ANet sales — TTM$20,392$22,208$24,014$26,705$28,66741%Operating income$290$214$144$285$34920%Operating margin — % of North America net sales5.3%4.0%2.4%2.9%4.7%N/AOperating income — TTM$972$986$943$933$9912%Operating income — TTM Y/Y growth, excluding F/X17%9%1%(2%)2%N/AOperating margin — TTM % of North America net sales4.8%4.4%3.9%3.5%3.5%N/AInternational Segment:Net sales$4,392$4,507$4,944$7,529$5,75831%Net sales — Y/Y growth, excluding F/X27%36%33%29%32%N/ANet sales — TTM$16,539$18,070$19,580$21,372$22,73737%Net sales — TTM % of WW net sales45%45%45%44%44%N/AOperating income$175$172$116$177$49(72%)Operating margin — % of International net sales4.0%3.8%2.4%2.4%0.9%N/AOperating income — TTM$922$888$790$640$515(44%)Operating income — TTM Y/Y growth, excluding F/X4%(7%)(23%)(41%)(49%)N/AOperating margin — TTM % of International net sales5.6%4.9%4.0%3.0%2.3%N/AConsolidated Segments:Operating expenses (3)$9,392$9,527$10,616$16,969$12,78736%Operating expenses — TTM (3)$35,037$38,404$41,860$46,504$49,89942%Operating income$465$386$260$462$398(15%)Operating margin — % of Consolidated sales4.7%3.9%2.4%2.7%3.0%N/AOperating income — TTM$1,894$1,874$1,734$1,573$1,505(21%)Operating income — TTM Y/Y growth, excluding F/X10%1%(11%)(21%)(22%)N/AOperating margin — TTM % of Consolidated net sales5.1%4.7%4.0%3.3%2.9%N/AAMAZON.COM, INC.Supplemental Financial Information and Business Metrics(in millions, except inventory turnover, accounts payable days and employee data)(unaudited)Y/Y %Q1 2011Q2 2011Q3 2011Q4 2011Q1 2012ChangeSupplementalSupplemental North America Segment Net Sales:Media$1,885$1,585$1,927$2,562$2,19717%Media — Y/Y growth, excluding F/X18%19%21%8%17%N/AMedia — TTM$7,170$7,430$7,767$7,959$8,27015%Electronics and other general merchandise$3,303$3,496$3,635$6,881$4,77244%Electronics and other general merchandise — Y/Y growth, excluding F/X63%67%56%51%44%N/AElectronics and other general merchandise — TTM$12,277$13,683$14,992$17,315$18,78453%Electronics and other general merchandise — TTM % of North America net sales60%62%62%65%66%N/AOther$277$325$370$459$45866%Other — TTM$945$1,095$1,255$1,431$1,61371%Supplemental International Segment Net Sales:Media$2,073$2,075$2,226$3,447$2,51321%Media — Y/Y growth, excluding F/X9%20%17%18%22%N/AMedia — TTM$8,247$8,772$9,238$9,820$10,26124%Electronics and other general merchandise$2,285$2,398$2,681$4,032$3,20340%Electronics and other general merchandise — Y/Y growth, excluding F/X49%53%51%41%42%N/AElectronics and other general merchandise — TTM$8,162$9,162$10,199$11,397$12,31451%Electronics and other general merchandise — TTM % of International net sales49%51%52%53%54%N/AOther$34$34$37$50$4224%Other — TTM$130$136$143$155$16226%Supplemental Worldwide Net Sales:Media$3,958$3,660$4,153$6,009$4,71019%Media — Y/Y growth, excluding F/X13%20%19%14%19%N/AMedia — TTM$15,417$16,202$17,005$17,779$18,53120%Electronics and other general merchandise$5,588$5,894$6,316$10,913$7,97543%Electronics and other general merchandise — Y/Y growth, excluding F/X57%62%54%47%43%N/AElectronics and other general merchandise — TTM$20,439$22,845$25,191$28,712$31,09852%Electronics and other general merchandise — TTM % of WW net sales55%57%58%60%60%N/AOther$311$359$407$509$50061%Other — TTM$1,075$1,231$1,398$1,586$1,77565%Balance SheetCash and marketable securities$6,881$6,355$6,326$9,576$5,715(17%)Inventory, net — ending$2,888$3,229$3,770$4,992$4,25547%Inventory turnover, average — TTM11.611.310.810.310.4(10%)Fixed assets, net$2,902$3,470$3,999$4,417$4,65360%Accounts payable — ending$5,540$5,721$6,552$11,145$6,88624%Accounts payable days — ending6669727462(5%)OtherWW shipping revenue$330$331$360$531$46140%WW shipping costs$786$820$918$1,466$1,12944%WW net shipping costs$456$489$558$935$66847%WW net shipping costs — % of WW net sales4.6%4.9%5.1%5.4%5.1%N/AEmployees (full-time and part-time; excludes contractors & temporary personnel)37,90043,20051,30056,20065,60073%(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.Amazon.com, Inc.
Certain Definitions
Customer Accounts

• References to customers mean customer accounts, which are unique e-mail addresses, established either when a customer places an order or when a customer orders from other sellers on our websites. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Enterprise Solutions program customers, Amazon.com Payments customers, Amazon Web Services customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period.

Seller Accounts

• References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Seller accounts exclude Amazon Enterprise Solutions sellers. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period.

Registered Developers

• References to registered developers mean cumulative registered developer accounts, which are established when potential developers enroll with Amazon Web Services and receive a developer access key.

Units

• References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers at Amazon domains worldwide – for example as well as Amazon-owned items sold through non-Amazon domains. Units sold are paid units and do not include units associated with certain acquisitions, rental businesses, web services or advertising businesses, or Amazon gift certificates.

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