Amazon.com Inc 8-K 2012-04-26

PRESS RELEASE

Exhibit 99.1

LOGO

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)April 26, 2012Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its first quarter ended March 31, 2012.

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 Companys 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.

Im excited to announce that we now have more than 130,000 new, in-copyright books that are exclusive to the Kindle Store you wont 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 youre an Amazon Prime member, you dont 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 well 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 Appstores 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 Channels Dirty Jobs, TLCs Say Yes To The Dress and Animal Planets 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 Companys U.S. and Canadian sites, were $7.43 billion, up 36% from first quarter 2011.

International segment sales, representing the Companys 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 19^th 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.coms 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 Companys 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.coms financial results is included in Amazon.coms 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 Earths Biggest Selection. Amazon.com, Inc. seeks to be Earths 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 Amazons developer customers with access to in-the-cloud infrastructure services based on Amazons 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 (Amazons 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 Ended March 31,						Twelve Months Ended March 31,
	2012			2011			2012			2011
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	$	5,269		$	3,777		$	2,641		$	1,844

OPERATING ACTIVITIES:
Net income		130			201			561			1,054
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		457			202			1,338			652
Stock-based compensation		160			110			605			448
Other operating expense (income), net		46			33			168			112
Losses (gains) on sales of marketable securities, net		(2	)		2			(8	)		1
Other expense (income), net		15			37			(78	)		(36	)
Deferred income taxes		(38	)		15			83			38
Excess tax benefits from stock-based compensation		(40	)		(46	)		(56	)		(219	)
Changes in operating assets and liabilities:
Inventories		747			343			(1,374	)		(997	)
Accounts receivable, net and other		746			359			(479	)		(170	)
Accounts payable		(4,258	)		(2,649	)		1,388			1,641
Accrued expenses and other		(529	)		(183	)		721			697
Additions to unearned revenue		397			210			1,252			709
Amortization of previously unearned revenue		(269	)		(220	)		(1,070	)		(897	)

Net cash provided by (used in) operating activities		(2,438	)		(1,586	)		3,051			3,033

INVESTING 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 investments		1,738			1,939			6,641			5,318
Purchases of marketable securities and other investments		(852	)		(1,112	)		(5,997	)		(6,135	)

Net cash provided by (used in) investing activities		450			390			(1,870	)		(2,428	)

FINANCING ACTIVITIES:
Excess tax benefits from stock-based compensation		40			46			56			219
Common stock repurchased		(960	)					(1,237	)
Proceeds from long-term debt and other		68			89			154			168
Repayments 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	)		92

Foreign-currency effect on cash and cash equivalents		12			36			(24	)		100

Net increase (decrease) in cash and cash equivalents		(2,981	)		(1,136	)		(353	)		797

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	2,288		$	2,641		$	2,288		$	2,641

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on long term debt	$	6		$	3		$	17		$	12
Cash paid for income taxes (net of refunds)		19			7			45			79
Fixed assets acquired under capital leases		149			181			721			526
Fixed assets acquired under build-to-suit leases		17			69			207			182

AMAZON.COM, INC.

Consolidated Statements of Operations

(in millions, except per share data)

(unaudited)

		000000000			000000000
	Three Months Ended March 31,
	2012			2011
Net product sales (1)	$	11,249		$	8,698
Net services sales (2)		1,936			1,159

Net sales		13,185			9,857

Operating expenses (3):
Cost of sales		10,027			7,608
Fulfillment		1,295			855
Marketing		480			327
Technology and content		945			579
General and administrative		200			133
Other operating expense (income), net		46			33

Total operating expenses		12,993			9,535

Income from operations		192			322

Interest income		12			15
Interest expense		(21	)		(12	)
Other income (expense), net		(99	)		(18	)

Total non-operating income (expense)		(108	)		(15	)

Income before income taxes		84			307

Provision for income taxes		(43	)		(89	)
Equity-method investment activity, net of tax		89			(17	)

Net income	$	130		$	201

Basic earnings per share	$	0.29		$	0.44

Diluted earnings per share	$	0.28		$	0.44

Weighted average shares used in computation of earnings per share:
Basic		453			451

Diluted		460			459

(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:

		000000000		000000000
Fulfillment	$	37	$	24
Marketing		12		7
Technology and content		85		61
General and administrative		26		18

AMAZON.COM, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(unaudited)


	Three Months Ended March 31,
	2012		2011
Net income	$	130	$	201

Other comprehensive income:
Foreign currency translation adjustments, net of tax of $(38) and $(7)		137		135
Change in unrealized gains on available-for-sale securities, net of tax of $(2) and $(5)		5		(11	)

Total other comprehensive income		142		124

Comprehensive income	$	272	$	325

AMAZON.COM, INC.

Segment Information

(in millions)

(unaudited)


	Three Months Ended March 31,
	2012			2011
North America
Net sales	$	7,427		$	5,465
Segment operating expenses (1)		7,078			5,175

Segment operating income	$	349		$	290


International
Net sales	$	5,758		$	4,392
Segment operating expenses (1)		5,709			4,217

Segment operating income	$	49		$	175


Consolidated
Net sales	$	13,185		$	9,857
Segment operating expenses (1)		12,787			9,392

Segment operating income		398			465
Stock-based compensation		(160	)		(110	)
Other operating income (expense), net		(46	)		(33	)

Income from operations		192			322
Total non-operating income (expense)		(108	)		(15	)
Provision for income taxes		(43	)		(89	)
Equity-method investment activity, net of tax		89			(17	)

Net income	$	130		$	201


Segment Highlights:
Y/Y net sales growth:
North America		36	%		45	%
International		31			31
Consolidated		34			38
Y/Y segment operating income growth (decline):
North America		20	%		6	%
International		(72	)		(25	)
Consolidated		(15	)		(8	)
Net sales mix:
North America		56	%		55	%
International		44			45

		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 March 31,
	2012			2011
North America
Media	$	2,197		$	1,885
Electronics and other general merchandise		4,772			3,303
Other (1)		458			277

Total North America	$	7,427		$	5,465

International
Media	$	2,513		$	2,073
Electronics and other general merchandise		3,203			2,285
Other (1)		42			34

Total International	$	5,758		$	4,392

Consolidated
Media	$	4,710		$	3,958
Electronics and other general merchandise		7,975			5,588
Other (1)		500			311

Total Consolidated	$	13,185		$	9,857

Y/Y Net Sales Growth:
North America:
Media		17	%		18	%
Electronics and other general merchandise		44			63
Other		66			74
Total North America		36			45

International:
Media		21	%		13	%
Electronics and other general merchandise		40			54
Other		24			15
Total International		31			31

Consolidated:
Media		19	%		15	%
Electronics and other general merchandise		43			59
Other		61			65
Total Consolidated		34			38

Y/Y Net Sales Growth Excluding Effect of Exchange Rates:
International:
Media		22	%		9	%
Electronics and other general merchandise		42			49
Other		26			12
Total International		32			27

Consolidated:
Media		19	%		13	%
Electronics and other general merchandise		43			57
Other		61			64
Total Consolidated		34			36

Consolidated Net Sales Mix:
Media		36	%		40	%
Electronics and other general merchandise		60			57
Other		4			3

		100	%		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, 2012			December 31, 2011
		(unaudited	)
ASSETS
Current assets:
Cash and cash equivalents	$	2,288		$	5,269
Marketable securities		3,427			4,307
Inventories		4,255			4,992
Accounts receivable, net and other		1,813			2,571
Deferred tax assets		371			351

Total current assets		12,154			17,490
Fixed assets, net		4,653			4,417
Deferred tax assets		27			28
Goodwill		1,970			1,955
Other assets		1,535			1,388

Total assets	$	20,339		$	25,278


LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable	$	6,886		$	11,145
Accrued expenses and other		3,602			3,751

Total current liabilities		10,488			14,896
Long-term liabilities		2,580			2,625

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 474 and 473
Outstanding shares 450 and 455		5			5
Treasury stock, at cost		(1,837	)		(877	)
Additional paid-in capital		7,192			6,990
Accumulated other comprehensive loss		(174	)		(316	)
Retained earnings		2,085			1,955

Total stockholders equity		7,271			7,757

Total liabilities and stockholders equity	$	20,339		$	25,278

AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except per share data)

(unaudited)


	Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Y/Y % Change
Cash Flows and Shares
Operating cash flow trailing twelve months (TTM)	$	3,033		$	3,205		$	3,114		$	3,903		$	3,051			1	%
Purchases of fixed assets (incl. internal-use software & website development) TTM	$	1,138		$	1,374		$	1,589		$	1,811		$	1,899			67	%
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/A
Invested capital (1)	$	7,931		$	8,551		$	9,147		$	9,680		$	10,006			N/A
Return on invested capital (2)		24	%		21	%		17	%		22	%		12	%		N/A

Common shares and stock-based awards outstanding		466			468			469			468			464
Common shares outstanding		452			454			455			455			450
Stock-based awards outstanding		14			15			14			14			13			(4	%)
Stock-based awards outstanding % of common shares outstanding		3.1	%		3.2	%		3.2	%		3.0	%		2.9	%		N/A

Results of Operations
Worldwide (WW) net sales	$	9,857		$	9,913		$	10,876		$	17,431		$	13,185			34	%
WW net sales Y/Y growth, excluding F/X		36	%		44	%		39	%		34	%		34	%		N/A
WW net sales TTM	$	36,931		$	40,278		$	43,594		$	48,077		$	51,404			39	%
WW net sales TTM Y/Y growth, excluding F/X		39	%		39	%		39	%		37	%		37	%		N/A

Operating income	$	322		$	201		$	79		$	260		$	192			(40	%)
Operating income Y/Y growth, excluding F/X		(20	%)		(36	%)		(77	%)		(48	%)		(38	%)		N/A
Operating margin % of WW net sales		3.3	%		2.0	%		0.7	%		1.5	%		1.5	%		N/A
Operating income TTM	$	1,334		$	1,265		$	1,076		$	862		$	732			(45	%)
Operating income TTM Y/Y growth, excluding F/X		7	%		(7	%)		(25	%)		(44	%)		(50	%)		N/A
Operating margin TTM % of WW net sales		3.6	%		3.1	%		2.5	%		1.8	%		1.4	%		N/A

Net 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	%)

Segments
North America Segment:
Net sales	$	5,465		$	5,406		$	5,932		$	9,902		$	7,427			36	%
Net sales Y/Y growth, excluding F/X		45	%		50	%		44	%		37	%		36	%		N/A
Net sales TTM	$	20,392		$	22,208		$	24,014		$	26,705		$	28,667			41	%
Operating income	$	290		$	214		$	144		$	285		$	349			20	%
Operating margin % of North America net sales		5.3	%		4.0	%		2.4	%		2.9	%		4.7	%		N/A
Operating income TTM	$	972		$	986		$	943		$	933		$	991			2	%
Operating income TTM Y/Y growth, excluding F/X		17	%		9	%		1	%		(2	%)		2	%		N/A
Operating margin TTM % of North America net sales		4.8	%		4.4	%		3.9	%		3.5	%		3.5	%		N/A

International Segment:
Net sales	$	4,392		$	4,507		$	4,944		$	7,529		$	5,758			31	%
Net sales Y/Y growth, excluding F/X		27	%		36	%		33	%		29	%		32	%		N/A
Net sales TTM	$	16,539		$	18,070		$	19,580		$	21,372		$	22,737			37	%
Net sales TTM % of WW net sales		45	%		45	%		45	%		44	%		44	%		N/A
Operating income	$	175		$	172		$	116		$	177		$	49			(72	%)
Operating margin % of International net sales		4.0	%		3.8	%		2.4	%		2.4	%		0.9	%		N/A
Operating income TTM	$	922		$	888		$	790		$	640		$	515			(44	%)
Operating income TTM Y/Y growth, excluding F/X		4	%		(7	%)		(23	%)		(41	%)		(49	%)		N/A
Operating margin TTM % of International net sales		5.6	%		4.9	%		4.0	%		3.0	%		2.3	%		N/A

Consolidated Segments:
Operating expenses (3)	$	9,392		$	9,527		$	10,616		$	16,969		$	12,787			36	%
Operating expenses TTM (3)	$	35,037		$	38,404		$	41,860		$	46,504		$	49,899			42	%
Operating income	$	465		$	386		$	260		$	462		$	398			(15	%)
Operating margin % of Consolidated sales		4.7	%		3.9	%		2.4	%		2.7	%		3.0	%		N/A
Operating income TTM	$	1,894		$	1,874		$	1,734		$	1,573		$	1,505			(21	%)
Operating income TTM Y/Y growth, excluding F/X		10	%		1	%		(11	%)		(21	%)		(22	%)		N/A
Operating margin TTM % of Consolidated net sales		5.1	%		4.7	%		4.0	%		3.3	%		2.9	%		N/A

AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except inventory turnover, accounts payable days and employee data)

(unaudited)


	Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Y/Y % Change
Supplemental
Supplemental North America Segment Net Sales:
Media	$	1,885		$	1,585		$	1,927		$	2,562		$	2,197			17	%
Media Y/Y growth, excluding F/X		18	%		19	%		21	%		8	%		17	%		N/A
Media TTM	$	7,170		$	7,430		$	7,767		$	7,959		$	8,270			15	%
Electronics and other general merchandise	$	3,303		$	3,496		$	3,635		$	6,881		$	4,772			44	%
Electronics and other general merchandise Y/Y growth, excluding F/X		63	%		67	%		56	%		51	%		44	%		N/A
Electronics and other general merchandise TTM	$	12,277		$	13,683		$	14,992		$	17,315		$	18,784			53	%
Electronics and other general merchandise TTM % of North America net sales		60	%		62	%		62	%		65	%		66	%		N/A
Other	$	277		$	325		$	370		$	459		$	458			66	%
Other TTM	$	945		$	1,095		$	1,255		$	1,431		$	1,613			71	%

Supplemental International Segment Net Sales:
Media	$	2,073		$	2,075		$	2,226		$	3,447		$	2,513			21	%
Media Y/Y growth, excluding F/X		9	%		20	%		17	%		18	%		22	%		N/A
Media TTM	$	8,247		$	8,772		$	9,238		$	9,820		$	10,261			24	%
Electronics and other general merchandise	$	2,285		$	2,398		$	2,681		$	4,032		$	3,203			40	%
Electronics and other general merchandise Y/Y growth, excluding F/X		49	%		53	%		51	%		41	%		42	%		N/A
Electronics and other general merchandise TTM	$	8,162		$	9,162		$	10,199		$	11,397		$	12,314			51	%
Electronics and other general merchandise TTM % of International net sales		49	%		51	%		52	%		53	%		54	%		N/A
Other	$	34		$	34		$	37		$	50		$	42			24	%
Other TTM	$	130		$	136		$	143		$	155		$	162			26	%

Supplemental Worldwide Net Sales:
Media	$	3,958		$	3,660		$	4,153		$	6,009		$	4,710			19	%
Media Y/Y growth, excluding F/X		13	%		20	%		19	%		14	%		19	%		N/A
Media TTM	$	15,417		$	16,202		$	17,005		$	17,779		$	18,531			20	%
Electronics and other general merchandise	$	5,588		$	5,894		$	6,316		$	10,913		$	7,975			43	%
Electronics and other general merchandise Y/Y growth, excluding F/X		57	%		62	%		54	%		47	%		43	%		N/A
Electronics and other general merchandise TTM	$	20,439		$	22,845		$	25,191		$	28,712		$	31,098			52	%
Electronics and other general merchandise TTM % of WW net sales		55	%		57	%		58	%		60	%		60	%		N/A
Other	$	311		$	359		$	407		$	509		$	500			61	%
Other TTM	$	1,075		$	1,231		$	1,398		$	1,586		$	1,775			65	%
Balance Sheet
Cash 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		$	4,255			47	%
Inventory turnover, average TTM		11.6			11.3			10.8			10.3			10.4			(10	%)
Fixed assets, net	$	2,902		$	3,470		$	3,999		$	4,417		$	4,653			60	%

Accounts payable ending	$	5,540		$	5,721		$	6,552		$	11,145		$	6,886			24	%
Accounts payable days ending		66			69			72			74			62			(5	%)
Other
WW shipping revenue	$	330		$	331		$	360		$	531		$	461			40	%
WW shipping costs	$	786		$	820		$	918		$	1,466		$	1,129			44	%
WW net shipping costs	$	456		$	489		$	558		$	935		$	668			47	%
WW net shipping costs % of WW net sales		4.6	%		4.9	%		5.1	%		5.4	%		5.1	%		N/A

Employees (full-time and part-time; excludes contractors & temporary personnel)		37,900			43,200			51,300			56,200			65,600			73	%

(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 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, www.amazon.es, www.diapers.com, www.endless.com, www.shopbop.com and www.zappos.com 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.

Contacts:

Amazon.com Investor Relations

Sean Boyle, 206/266-2171

www.amazon.com/ir

Amazon.com Public Relations

Mary Osako, 206/266-7180

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