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Exhibit


Exhibit 99.1
 
AMAZON.COM ANNOUNCES FOURTH QUARTER SALES UP 22% TO $35.7 BILLION
SEATTLE—(BUSINESS WIRE)—January 28, 2016—Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its fourth quarter ended December 31, 2015.
Operating cash flow increased 74% to $11.9 billion for the trailing twelve months, compared with $6.8 billion for the trailing twelve months ended December 31, 2014. Free cash flow increased to $7.3 billion for the trailing twelve months, compared with $1.9 billion for the trailing twelve months ended December 31, 2014. Free cash flow less lease principal repayments increased to $4.7 billion for the trailing twelve months, compared with $529 million for the trailing twelve months ended December 31, 2014. Free cash flow less finance lease principal repayments and assets acquired under capital leases increased to $2.5 billion for the trailing twelve months, compared with an outflow of $2.2 billion for the trailing twelve months ended December 31, 2014.
Common shares outstanding plus shares underlying stock-based awards totaled 490 million on December 31, 2015, compared with 483 million one year ago.
Fourth Quarter 2015
Net sales increased 22% to $35.7 billion in the fourth quarter, compared with $29.3 billion in fourth quarter 2014. Excluding the $1.2 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 26% compared with fourth quarter 2014.
Operating income increased 88% to $1.1 billion in the fourth quarter, compared with operating income of $591 million in fourth quarter 2014.
Net income was $482 million in the fourth quarter, or $1.00 per diluted share, compared with net income of $214 million, or $0.45 per diluted share, in fourth quarter 2014.

Full Year 2015
Net sales increased 20% to $107.0 billion, compared with $89.0 billion in 2014. Excluding the $5.2 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 26% compared with 2014.
Operating income was $2.2 billion, compared with operating income of $178 million in 2014.
Net income was $596 million, or $1.25 per diluted share, compared with net loss of $241 million, or $0.52 per diluted share, in 2014.

“Twenty years ago, I was driving the packages to the post office myself and hoping we might one day afford a forklift. This year, we pass $100 billion in annual sales and serve 300 million customers,” said Jeff Bezos, founder and CEO of Amazon.com. “And still, measured by the dynamism we see everywhere in the marketplace and by the ever-expanding opportunities we see to invent on behalf of customers, it feels every bit like Day 1.”
Highlights
•
Fire TV remains the #1 best-selling streaming media player in the U.S., having added over 1,000 new apps, channels, and games since September, including NBC, NBC Sports, Watch HGTV, Watch Food Network, and Watch Travel Channel.
•
The $50 Fire tablet has been the #1 best-selling, most gifted, and most wished-for product across all items available on Amazon.com since its introduction 19 weeks ago.
•
The Alexa Skills Kit and Alexa Voice Service continue to attract innovative companies, with Ford, Invoxia, Vivint, Alarm.com, and Ooma announcing plans to integrate their products and services with Alexa. In addition, Alexa continues to get smarter with new features, including local search from Yelp, news sources from CNN and Bloomberg, enhanced IFTTT support, new alarm tones, and customized sports updates.



•
Last quarter, developers added over 100 new capabilities to Alexa-enabled devices. Amazon Echo and Fire TV customers can now play Jeopardy!, get stock quotes with Fidelity, hear headlines from The Huffington Post, exercise with a seven-minute workout, and test their Star Wars knowledge with a trivia quiz from Disney.
•
Amazon announced the first devices available with Amazon Dash Replenishment Service, including products from Brother, GE, and Gmate. Additionally, new brands and devices have joined the Dash Replenishment program, including Purell and Whirlpool.
•
In 2015, worldwide paid Prime memberships increased 51% — 47% in the U.S. and even faster outside the U.S.
•
Prime Video continues to grow internationally with nearly double the streaming customers compared with fourth quarter 2014.
•
The Prime-exclusive Original Series Mozart in the Jungle received two Golden Globes for Best Television Series - Musical or Comedy and Best Performance by an Actor in a Television Series - Musical or Comedy (Gael García Bernal).
•
Over the holidays Prime members made The Man in The High Castle the most watched series on Prime Video by 4.5x. The Amazon Original Series received outstanding critical acclaim, including USA Today calling it the “best new drama of the season.”
•
The second season of hit show Transparent was named as one of the top television series of 2015 by The New York Times, Variety, IndieWire, and The New Yorker.
•
Amazon Studios released its first Original Movie Chi-Raq, directed by Spike Lee, to rave reviews. The film has been included in 2015 “Best Films” lists from LA Weekly, The New Yorker, The Washington Post, Los Angeles Times, Slant, and Vulture.
•
Amazon launched the Streaming Partners Program, an over-the-top streaming subscription program that gives Prime members the option to add SHOWTIME, STARZ, and dozens more video subscriptions to their Prime membership.
•
In the fourth quarter, Prime Music streaming hours more than tripled in the U.S. compared with fourth quarter 2014.
•
Prime Music launched in Germany and Japan, offering Prime members more than one million songs and hundreds of playlists at no additional cost to their membership.
•
Since launching in December 2014 with one location, Prime Now has grown to more than 25 metropolitan areas across the U.S., U.K., Italy, and Japan.
•
Prime Same Day launched in the U.K. and Germany, offering Prime members unlimited free same-day delivery on a million items.
•
Amazon Pantry launched in the U.K., allowing Prime members to purchase daily essentials in everyday sizes and have items delivered for a low, flat-rate fee.
•
In 2015, Fulfillment by Amazon (FBA) shipped over one billion units on behalf of sellers. The number of active sellers using FBA grew more than 50%.
•
In the fourth quarter, FBA units represented nearly 50% of total third-party units.
•
Payment volume from Pay with Amazon grew more than 150% year-over-year in 2015, giving Amazon shoppers a secure way to pay on thousands of websites using information already stored in their Amazon accounts.
•
Amazon China launched the Amazon Global Store (AGS) 2.0 customer experience, which provides customers an easier and more convenient shopping experience through single login, unified shopping cart, and local payment. Additionally, AGS selection has grown to over nine million items.
•
Amazon.in was the top e-commerce site in India throughout the fourth quarter, including the busy Diwali shopping season, according to global analytics firm comScore.
•
Downloads of the Amazon.in mobile shopping app grew faster in the fourth quarter than any other e-commerce app in India, according to app analytics firm App Annie.
•
Sellers on Amazon.in sold more in the fourth quarter than in all four quarters combined in 2014.
•
Amazon Fashion, East Dane, and MyHabit return as the lead sponsor for the second season of New York Fashion Week: Men’s, hosted by The Council of Fashion Designers of America.
•
Amazon Launchpad, a program that helps startups launch, market, and distribute their products, has worked with leading venture capital firms, startup accelerators, and crowd-funding platforms to help more than 500 startups launch over 750 products in the U.S., U.K., and China.
•
Amazon entered into an agreement to support the construction and operation of Amazon Wind Farm U.S. Central, which is expected to generate approximately 320,000 megawatt hours (MWh) of wind energy on an annual basis. Amazon Wind Farm U.S. Central, combined with Amazon’s previously announced projects, Amazon Wind Farm Fowler Ridge, Amazon Solar Farm U.S. East in Virginia, and Amazon Wind Farm U.S. East in North Carolina, will be responsible for delivering more than 1.6 million MWh of additional renewable energy annually, roughly equivalent to the amount of energy required to power 150,000 U.S. homes for a year.
•
Only eight months after launch, Amazon Business, a marketplace with features and benefits tailored to businesses, serves more than 200,000 businesses ranging from small businesses to Fortune 500 companies.
•
Amazon Web Services (AWS) announced the launch of its Asia Pacific (Seoul) Region in Korea and its plans to open a new region in Canada. The AWS Cloud is now available from 32 Availability Zones across 12 geographic regions



worldwide, with another five AWS Regions (and 11 Availability Zones) in Canada, China, India, Ohio, and the U.K. expected to be available in the coming year.
•
AWS announced the general availability of Amazon WorkMail, a secure, managed business email and calendaring service with support for existing desktop and mobile email clients.
•
AWS announced the general availability of AWS IoT, a managed cloud platform that lets billions of connected devices — such as mobile phones, cars, factory floors, aircraft engines, sensor grids, and more — easily and securely interact with cloud applications and other devices. AWS IoT can support trillions of messages, and can process, route, and keep track of those messages to AWS endpoints and other devices reliably and securely, even when the devices aren’t connected.
•
AWS announced AWS Certificate Manager (ACM), a new service that enables customers to easily provision, manage, and deploy Secure Sockets Layer/Transport Layer Security (SSL/TLS) certificates for use with AWS services. SSL/TLS certificates are used to secure network communications and establish the identity of websites over the Internet. Certificates, which typically cost between $45 and $499, are provided to AWS customers free of charge through ACM and are verified by Amazon’s certificate authority, Amazon Trust Services.
•
AWS launched EC2 Scheduled Reserved Instances, allowing customers to reserve capacity for their applications that run on a part-time, recurring basis with a daily, weekly, or monthly schedule over the course of a one-year term.
•
AWS announced 722 significant new services and features in 2015, a 40% increase over 2014.

Financial Guidance
The following 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, and the various factors detailed below.
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.

A conference call will be webcast live today at 2:00 p.m. PT/5:00 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, sortation, delivery, and data center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains, and develops commercial agreements, acquisitions and strategic transactions, payments risks, 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, 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, which may contain material information about us, and you may subscribe to be notified of new information posted to this site.
About Amazon
Amazon.com opened on the World Wide Web in July 1995. The company is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer



reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon. For more information, visit www.amazon.com/about.




AMAZON.COM, INC.
Consolidated Statements of Cash Flows
(in millions)

 
  
Three Months Ended 
 December 31,
 
Twelve Months Ended 
 December 31,
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
(unaudited)
 
 
 
 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
$
10,709

 
$
5,258

 
$
14,557

 
$
8,658

OPERATING ACTIVITIES:
 
 
 
 
 
 
 
Net income (loss)
482

 
214

 
596

 
(241
)
Adjustments to reconcile net income (loss) to net cash from operating activities:
 
 
 
 
 
 
 
Depreciation of property and equipment, including internal-use software and website development, and other amortization, including capitalized content costs
1,752

 
1,379

 
6,281

 
4,746

Stock-based compensation
606

 
408

 
2,119

 
1,497

Other operating expense (income), net
35

 
36

 
155

 
129

Losses (gains) on sales of marketable securities, net
1

 
—

 
5

 
(3
)
Other expense (income), net
79

 
78

 
245

 
62

Deferred income taxes
190

 
185

 
81

 
(316
)
Excess tax benefits from stock-based compensation
93

 
115

 
(119
)
 
(6
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
Inventories
(1,343
)
 
(1,139
)
 
(2,187
)
 
(1,193
)
Accounts receivable, net and other
(1,178
)
 
(1,104
)
 
(1,755
)
 
(1,039
)
Accounts payable
6,140

 
5,053

 
4,294

 
1,759

Accrued expenses and other
1,836

 
1,451

 
913

 
706

Additions to unearned revenue
2,422

 
1,378

 
7,401

 
4,433

Amortization of previously unearned revenue
(2,303
)
 
(1,339
)
 
(6,109
)
 
(3,692
)
Net cash provided by (used in) operating activities
8,812

 
6,715

 
11,920

 
6,842

INVESTING ACTIVITIES:
 
 
 
 
 
 
 
Purchases of property and equipment, including internal-use software and website development, net
(1,309
)
 
(1,144
)
 
(4,589
)
 
(4,893
)
Acquisitions, net of cash acquired, and other
(317
)
 
(53
)
 
(795
)
 
(979
)
Sales and maturities of marketable securities
1,135

 
355

 
3,025

 
3,349

Purchases of marketable securities
(1,359
)
 
(1,623
)
 
(4,091
)
 
(2,542
)
Net cash provided by (used in) investing activities
(1,850
)
 
(2,465
)
 
(6,450
)
 
(5,065
)
FINANCING ACTIVITIES:
 
 
 
 
 
 
 
Excess tax benefits from stock-based compensation
(93
)
 
(115
)
 
119

 
6

Proceeds from long-term debt and other
93

 
5,981

 
353

 
6,359

Repayments of long-term debt and other
(940
)
 
(183
)
 
(1,652
)
 
(513
)
Principal repayments of capital lease obligations
(724
)
 
(406
)
 
(2,462
)
 
(1,285
)
Principal repayments of finance lease obligations
(26
)
 
(68
)
 
(121
)
 
(135
)
Net cash provided by (used in) financing activities
(1,690
)
 
5,209

 
(3,763
)
 
4,432

Foreign-currency effect on cash and cash equivalents
(91
)
 
(160
)
 
(374
)
 
(310
)
Net increase (decrease) in cash and cash equivalents
5,181

 
9,299

 
1,333

 
5,899

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
15,890

 
$
14,557

 
$
15,890

 
$
14,557

SUPPLEMENTAL CASH FLOW INFORMATION:
 
 
 
 
 
 
 
Cash paid for interest on long-term debt
$
148

 
$
36

 
$
325

 
$
91

Cash paid for interest on capital and finance lease obligations
44

 
29

 
153

 
86

Cash paid for income taxes (net of refunds)
73

 
30

 
273

 
177

Property and equipment acquired under capital leases
1,332

 
1,214

 
4,717

 
4,008

Property and equipment acquired under build-to-suit leases
163

 
214

 
544

 
920




AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)

  
Three Months Ended 
 December 31,
 
Twelve Months Ended 
 December 31,
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
(unaudited)
 
 
 
 
Net product sales
$
26,618

 
$
23,102

 
$
79,268

 
$
70,080

Net service sales
9,129

 
6,226

 
27,738

 
18,908

Total net sales
35,747

 
29,328

 
107,006

 
88,988

Operating expenses (1):
 
 
 
 
 
 
 
Cost of sales
24,341

 
20,671

 
71,651

 
62,752

Fulfillment
4,546

 
3,424

 
13,410

 
10,766

Marketing
1,755

 
1,526

 
5,254

 
4,332

Technology and content
3,571

 
2,635

 
12,540

 
9,275

General and administrative
390

 
442

 
1,747

 
1,552

Other operating expense (income), net
36

 
39

 
171

 
133

Total operating expenses
34,639

 
28,737

 
104,773

 
88,810

Income from operations
1,108

 
591

 
2,233

 
178

Interest income
13

 
8

 
50

 
39

Interest expense
(115
)
 
(74
)
 
(459
)
 
(210
)
Other income (expense), net
(68
)
 
(96
)
 
(256
)
 
(118
)
Total non-operating income (expense)
(170
)
 
(162
)
 
(665
)
 
(289
)
Income (loss) before income taxes
938

 
429

 
1,568

 
(111
)
Provision for income taxes
(453
)
 
(205
)
 
(950
)
 
(167
)
Equity-method investment activity, net of tax
(3
)
 
(10
)
 
(22
)
 
37

Net income (loss)
$
482

 
$
214

 
$
596

 
$
(241
)
Basic earnings per share
$
1.03

 
$
0.46

 
$
1.28

 
$
(0.52
)
Diluted earnings per share
$
1.00

 
$
0.45

 
$
1.25

 
$
(0.52
)
Weighted-average shares used in computation of earnings per share:
 
 
 
 
 
 
 
Basic
470

 
464

 
467

 
462

Diluted
481

 
472

 
477

 
462

_____________
 
 
 
 
 
 
 
(1)    Includes stock-based compensation as follows:
 
 
 
 
 
 
 
Fulfillment
$
137

 
$
97

 
$
482

 
$
375

Marketing
57

 
34

 
190

 
125

Technology and content
364

 
226

 
1,224

 
804

General and administrative
48

 
51

 
223

 
193





AMAZON.COM, INC.
Consolidated Statements of Comprehensive Income (Loss)
(in millions)

 
  
Three Months Ended 
 December 31,
 
Twelve Months Ended 
 December 31,
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
(unaudited)
 
 
 
 
Net income (loss)
$
482

 
$
214

 
$
596

 
$
(241
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
Foreign currency translation adjustments, net of tax of $7, $(3), $10, and $(3)
(40
)
 
(116
)
 
(210
)
 
(325
)
Net change in unrealized gains (losses) on available-for-sale securities:
 
 
 
 
 
 
 
Unrealized gains (losses), net of tax of $1, $1, $(5), and $1
(9
)
 
2

 
(7
)
 
2

Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $(1), $0, and $(1)
1

 
(2
)
 
5

 
(3
)
Net unrealized gains (losses) on available-for-sale securities
(8
)
 
—

 
(2
)
 
(1
)
Total other comprehensive income (loss)
(48
)
 
(116
)
 
(212
)
 
(326
)
Comprehensive income (loss)
$
434

 
$
98

 
$
384

 
$
(567
)




AMAZON.COM, INC.
Segment Information
(in millions)
 
  
Three Months Ended 
 December 31,
 
Twelve Months Ended 
 December 31,
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
(unaudited)
 
 
 
 
North America
 
 
 
 
 
 
 
Net sales
$
21,501

 
$
17,333

 
$
63,708

 
$
50,834

Segment operating expenses (1)
20,498

 
16,600

 
60,957

 
49,542

Segment operating income (loss)
$
1,003

 
$
733

 
$
2,751

 
$
1,292

International
 
 
 
 
 
 
 
Net sales
$
11,841

 
$
10,575

 
$
35,418

 
$
33,510

Segment operating expenses (1)
11,781

 
10,510

 
35,509

 
33,654

Segment operating income (loss)
$
60

 
$
65

 
$
(91
)
 
$
(144
)
AWS
 
 
 
 
 
 
 
Net sales
$
2,405

 
$
1,420

 
$
7,880

 
$
4,644

Segment operating expenses (1)
1,718

 
1,180

 
6,017

 
3,984

Segment operating income (loss)
$
687

 
$
240

 
$
1,863

 
$
660

Consolidated
 
 
 
 
 
 
 
Net sales
$
35,747

 
$
29,328

 
$
107,006

 
$
88,988

Segment operating expenses (1)
33,997

 
28,290

 
102,483

 
87,180

Segment operating income (loss)
1,750

 
1,038

 
4,523

 
1,808

Stock-based compensation
(606
)
 
(408
)
 
(2,119
)
 
(1,497
)
Other operating income (expense), net
(36
)
 
(39
)
 
(171
)
 
(133
)
Income from operations
1,108

 
591

 
2,233

 
178

Total non-operating income (expense)
(170
)
 
(162
)
 
(665
)
 
(289
)
Provision for income taxes
(453
)
 
(205
)
 
(950
)
 
(167
)
Equity-method investment activity, net of tax
(3
)
 
(10
)
 
(22
)
 
37

Net income (loss)
$
482

 
$
214

 
$
596

 
$
(241
)
Segment Highlights:
 
 
 
 
 
 
 
Y/Y net sales growth:
 
 
 
 
 
 
 
North America
24
%
 
21
%
 
25
%
 
23
%
International
12

 
3

 
6

 
12

AWS
69

 
47

 
70

 
49

Consolidated
22

 
15

 
20

 
20

Net sales mix:
 
 
 
 
 
 
 
North America
60
%
 
59
%
 
60
%
 
57
%
International
33

 
36

 
33

 
38

AWS
7

 
5

 
7

 
5

Consolidated
100
%
 
100
%
 
100
%
 
100
%
______________________________

(1)
Excludes stock-based compensation and “Other operating expense (income), net,” which are not allocated to segments.



AMAZON.COM, INC.
Supplemental Net Sales Information
(in millions)
  
Three Months Ended 
 December 31,
 
Twelve Months Ended 
 December 31,
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
(unaudited)
 
 
 
 
Net Sales:
 
 
 
North America
 
 
 
 
 
 
 
Media
$
3,931

 
$
3,544

 
$
12,483

 
$
11,567

Electronics and other general merchandise
17,325

 
13,529

 
50,401

 
38,517

Other (1)
245

 
260

 
824

 
750

Total North America
$
21,501

 
$
17,333

 
$
63,708

 
$
50,834

International
 
 
 
 
 
 
 
Media
$
3,292

 
$
3,406

 
$
10,026

 
$
10,938

Electronics and other general merchandise
8,491

 
7,109

 
25,196

 
22,369

Other (1)
58

 
60

 
196

 
203

Total International
$
11,841

 
$
10,575

 
$
35,418

 
$
33,510

Year-over-year Percentage Growth:
 
 
 
 
 
 
 
North America
 
 
 
 
 
 
 
Media
11
 %
 
1
 %
 
8
 %
 
7
 %
Electronics and other general merchandise
28

 
27

 
31

 
28

Other
(6
)
 
28

 
10

 
22

Total North America
24

 
21

 
25

 
23

International
 
 
 
 
 
 
 
Media
(3
)%
 
(8
)%
 
(8
)%
 
—
 %
Electronics and other general merchandise
19

 
10

 
13

 
19

Other
(3
)
 
(6
)
 
(3
)
 
(3
)
Total International
12

 
3

 
6

 
12

Year-over-year Percentage Growth, excluding the effect of foreign exchange rates:
 
 
 
 
 
 
 
North America
 
 
 
 
 
 
 
Media
12
 %
 
1
 %
 
8
 %
 
7
 %
Electronics and other general merchandise
28

 
27

 
31

 
29

Other
(6
)
 
28

 
10

 
22

Total North America
24

 
21

 
26

 
23

International
 
 
 
 
 
 
 
Media
5
 %
 
(1
)%
 
4
 %
 
2
 %
Electronics and other general merchandise
31

 
19

 
29

 
21

Other
5

 
1

 
10

 
(3
)
Total International
22

 
12

 
21

 
14

______________________________
(1)
Includes sales from non-retail activities, such as certain advertising services and our co-branded credit card agreements.



AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
 
 
December 31, 2015
 
December 31, 2014
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
15,890

 
$
14,557

Marketable securities
3,918

 
2,859

Inventories
10,243

 
8,299

Accounts receivable, net and other
6,423

 
5,612

Total current assets
36,474

 
31,327

Property and equipment, net
21,838

 
16,967

Goodwill
3,759

 
3,319

Other assets
3,373

 
2,892

Total assets
$
65,444

 
$
54,505

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
20,397

 
$
16,459

Accrued expenses and other
10,384

 
9,807

Unearned revenue
3,118

 
1,823

Total current liabilities
33,899

 
28,089

Long-term debt
8,235

 
8,265

Other long-term liabilities
9,926

 
7,410

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 — 494 and 488
 
 
 
Outstanding shares — 471 and 465
5

 
5

Treasury stock, at cost
(1,837
)
 
(1,837
)
Additional paid-in capital
13,394

 
11,135

Accumulated other comprehensive loss
(723
)
 
(511
)
Retained earnings
2,545

 
1,949

Total stockholders’ equity
13,384

 
10,741

Total liabilities and stockholders’ equity
$
65,444

 
$
54,505





AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)
 
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Y/Y %
Change
Cash Flows and Shares
 
 
 
 
 
 
Operating cash flow -- trailing twelve months (TTM)
$
6,842

$
7,845

$
8,980

$
9,823

$
11,920

74
 %
Operating cash flow -- TTM Y/Y growth (decline)
25
 %
47
 %
69
%
72
%
74
%
N/A

Purchases of property and equipment, including internal-use software and website development, net -- TTM
$
4,893

$
4,684

$
4,607

$
4,424

$
4,589

(6
)%
Principal repayments of capital lease obligations -- TTM
$
1,285

$
1,537

$
1,832

$
2,144

$
2,462

92
 %
Principal repayments of finance lease obligations -- TTM
$
135

$
132

$
155

$
163

$
121

(11
)%
Property and equipment acquired under capital leases -- TTM
$
4,008

$
4,246

$
4,710

$
4,599

$
4,717

18
 %
Free cash flow -- TTM (1)
$
1,949

$
3,161

$
4,373

$
5,399

$
7,331

276
 %
Invested capital (2)
$
21,021

$
23,090

$
25,289

$
27,425

$
29,694

41
 %
Free cash flow less lease principal repayments -- TTM (3)
$
529

$
1,492

$
2,386

$
3,092

$
4,748

797
 %
Free cash flow less finance lease principal repayments and assets acquired under capital leases -- TTM (4)
$
(2,194
)
$
(1,217
)
$
(492
)
$
637

$
2,493

N/A

Common shares and stock-based awards outstanding
483

483

488

489

490

1
 %
Common shares outstanding
465

466

468

469

471

1
 %
Stock-based awards outstanding
18

17

20

20

19

7
 %
Stock-based awards outstanding -- % of common shares outstanding
3.8
 %
3.8
 %
4.4
%
4.3
%
4.1
%
N/A

Results of Operations
 
 
 
 
 
 
Worldwide (WW) net sales
$
29,328

$
22,717

$
23,185

$
25,358

$
35,747

22
 %
WW net sales -- Y/Y growth, excluding F/X
18
 %
22
 %
27
%
30
%
26
%
N/A

WW net sales -- TTM
$
88,988

$
91,963

$
95,808

$
100,588

$
107,006

20
 %
WW net sales -- TTM Y/Y growth, excluding F/X
20
 %
20
 %
22
%
24
%
26
%
N/A

Operating income (loss)
$
591

$
255

$
464

$
406

$
1,108

88
 %
Operating income/loss -- Y/Y growth (decline), excluding F/X
22
 %
90
 %
N/A

N/A

84
%
N/A

Operating margin -- % of WW net sales
2.0
 %
1.1
 %
2.0
%
1.6
%
3.1
%
N/A

Operating income (loss) -- TTM
$
178

$
287

$
765

$
1,715

$
2,233

N/A

Operating income/loss -- TTM Y/Y growth (decline), excluding F/X
(79
)%
(56
)%
35
%
N/A

N/A

N/A

Operating margin -- TTM % of WW net sales
0.2
 %
0.3
 %
0.8
%
1.7
%
2.1
%
N/A

Net income (loss)
$
214

$
(57
)
$
92

$
79

$
482

125
 %
Net income (loss) per diluted share
$
0.45

$
(0.12
)
$
0.19

$
0.17

$
1.00

121
 %
Net income (loss) -- TTM
$
(241
)
$
(405
)
$
(188
)
$
328

$
596

N/A

Net income (loss) per diluted share -- TTM
$
(0.52
)
$
(0.88
)
$
(0.41
)
$
0.69

$
1.25

N/A

______________________________
(1)
Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, including internal-use software and website development, net” which is included in cash flow from investing activities.
(2)
Average Total Assets minus Current Liabilities (excluding current portion of Long-Term Debt) over five quarter ends.
(3)
Free cash flow less lease principal repayments is free cash flow reduced by “Principal repayments of capital lease obligations,” and “Principal repayments of finance lease obligations,” which are included in cash flow from financing activities.
(4)
Free cash flow less finance lease principal repayments and assets acquired under capital leases is free cash flow reduced by “Principal repayments of finance lease obligations,” which are included in cash flow from financing activities, and property and equipment acquired under capital leases. In this measure, property and equipment acquired under capital leases is reflected as if these assets had been purchased with cash, which is not the case as these assets have been leased.






AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions)
(unaudited)

 
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Y/Y %
Change
Segments
 
 
 
 
 
 
North America Segment:
 
 
 
 
 
 
  Net sales
$
17,333

$
13,406

$
13,796

$
15,006

$
21,501

24
 %
  Net sales -- Y/Y growth, excluding F/X
21
 %
24
 %
26
 %
29
 %
24
 %
N/A

  Net sales -- TTM
$
50,834

$
53,432

$
56,233

$
59,540

$
63,708

25
 %
  Operating income (loss)
$
733

$
517

$
703

$
528

$
1,003

37
 %
  Operating income/loss -- Y/Y growth (decline), excluding F/X
 
77
 %
111
 %
N/A

36
 %
N/A

  Operating margin -- % of North America net sales
4.2
 %
3.9
 %
5.1
 %
3.5
 %
4.7
 %
N/A

  Operating income (loss) -- TTM
$
1,292

$
1,520

$
1,893

$
2,480

$
2,751

113
 %
  Operating margin -- TTM % of North America net sales
2.5
 %
2.8
 %
3.4
 %
4.2
 %
4.3
 %
N/A

International Segment:
 
 
 
 
 
 
  Net sales
$
10,575

$
7,745

$
7,565

$
8,267

$
11,841

12
 %
  Net sales -- Y/Y growth, excluding F/X
12
 %
14
 %
22
 %
24
 %
22
 %
N/A

  Net sales -- TTM
$
33,510

$
33,371

$
33,598

$
34,154

$
35,418

6
 %
  Net sales -- TTM % of WW net sales
38
 %
36
 %
35
 %
34
 %
33
 %
N/A

  Operating income (loss)
$
65

$
(76
)
$
(19
)
$
(56
)
$
60

(7
)%
  Operating income/loss -- Y/Y growth (decline), excluding F/X
 
N/A

N/A

N/A

65
 %
N/A

  Operating margin -- % of International net sales
0.6
 %
(1.0
)%
(0.2
)%
(0.7
)%
0.5
 %
N/A

  Operating income (loss) -- TTM
$
(144
)
$
(188
)
$
(205
)
$
(86
)
$
(91
)
(36
)%
  Operating margin -- TTM % of International net sales
(0.4
)%
(0.6
)%
(0.6
)%
(0.3
)%
(0.3
)%
N/A

AWS Segment:
 
 
 
 
 
 
  Net sales
$
1,420

$
1,566

$
1,824

$
2,085

$
2,405

69
 %
  Net sales -- Y/Y growth, excluding F/X
47
 %
49
 %
81
 %
78
 %
69
 %
N/A

  Net sales -- TTM
$
4,644

$
5,160

$
5,977

$
6,894

$
7,880

70
 %
  Net sales -- TTM % of WW net sales
5
 %
6
 %
6
 %
7
 %
7
 %
N/A

  Operating income (loss)
$
240

$
265

$
391

$
521

$
687

186
 %
  Operating income/loss -- Y/Y growth (decline), excluding F/X
 
(13
)%
314
 %
353
 %
161
 %
N/A

  Operating margin -- % of AWS net sales
16.9
 %
16.9
 %
21.4
 %
25.0
 %
28.5
 %
N/A

  Operating income (loss) -- TTM
$
660

$
680

$
993

$
1,417

$
1,863

182
 %
  Operating margin -- TTM % of AWS net sales
14.2
 %
13.2
 %
16.6
 %
20.6
 %
23.6
 %
N/A

Consolidated Segments:
 
 
 
 
 
 
  Operating expenses (5)
$
28,290

$
22,011

$
22,110

$
24,365

$
33,997

20
 %
  Operating expenses -- TTM (5)
$
87,180

$
89,951

$
93,126

$
96,777

$
102,483

18
 %
  Operating income (loss)
$
1,038

$
706

$
1,075

$
993

$
1,750

69
 %
  Operating income/loss -- Y/Y growth (decline), excluding F/X
22
 %
45
 %
168
 %
N/A

67
 %
N/A

  Operating margin -- % of Consolidated sales
3.5
 %
3.1
 %
4.6
 %
3.9
 %
4.9
 %
N/A

  Operating income (loss) -- TTM
$
1,808

$
2,012

$
2,682

$
3,811

$
4,523

150
 %
  Operating income/loss -- TTM Y/Y growth (decline), excluding F/X
(10
)%
(1
)%
34
 %
134
 %
149
 %
N/A

  Operating margin -- TTM % of Consolidated net sales
2.0
 %
2.2
 %
2.8
 %
3.8
 %
4.2
 %
N/A

______________________________
(5)
Represents cost of sales, fulfillment, marketing, technology and content, and general and administrative operating expenses, excluding stock-based compensation.





AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except inventory turnover, accounts payable days and employee data)
(unaudited)
 
 
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Y/Y %
Change
Supplemental
 
 
 
 
 
 
Supplemental North America Segment Net Sales:
 
 
 
 
 
 
  Media
$
3,544

$
2,969

$
2,620

$
2,963

$
3,931

11
 %
  Media -- Y/Y growth, excluding F/X
1
 %
5
%
7
%
9
%
12
%
N/A

  Media -- TTM
$
11,567

$
11,711

$
11,867

$
12,096

$
12,483

8
 %
  Electronics and other general merchandise
$
13,529

$
10,250

$
10,987

$
11,840

$
17,325

28
 %
  Electronics and other general merchandise -- Y/Y growth, excluding F/X
27
 %
31
%
32
%
35
%
28
%
N/A

  Electronics and other general merchandise -- TTM
$
38,517

$
40,938

$
43,559

$
46,606

$
50,401

31
 %
  Electronics and other general merchandise -- TTM % of North America net sales
76
 %
77
%
77
%
78
%
79
%
N/A

  Other
$
260

$
187

$
189

$
203

$
245

(6
)%
Supplemental International Segment Net Sales:
 
 
 
 
 
 
  Media
$
3,406

$
2,320

$
2,094

$
2,320

$
3,292

(3
)%
  Media -- Y/Y growth, excluding F/X
(1
)%
2
%
3
%
6
%
5
%
N/A

  Media -- TTM
$
10,938

$
10,615

$
10,329

$
10,140

$
10,026

(8
)%
  Electronics and other general merchandise
$
7,109

$
5,378

$
5,425

$
5,901

$
8,491

19
 %
  Electronics and other general merchandise -- Y/Y growth, excluding F/X
19
 %
21
%
31
%
32
%
31
%
N/A

  Electronics and other general merchandise -- TTM
$
22,369

$
22,559

$
23,072

$
23,814

$
25,196

13
 %
  Electronics and other general merchandise -- TTM % of International net sales
67
 %
68
%
69
%
70
%
71
%
N/A

  Other
$
60

$
47

$
46

$
46

$
58

(3
)%
Balance Sheet
 
 
 
 
 
 
Cash and marketable securities -- ending
$
17,416

$
13,781

$
14,001

$
14,428

$
19,808

14
 %
Inventory, net -- ending
$
8,299

$
7,369

$
7,470

$
8,981

$
10,243

23
 %
Inventory turnover, average -- TTM
8.6

8.8

8.9

8.6

8.5

(2
)%
Property and equipment, net -- ending
$
16,967

$
17,736

$
19,479

$
20,636

$
21,838

29
 %
Accounts payable -- ending
$
16,459

$
11,917

$
12,391

$
14,437

$
20,397

24
 %
Accounts payable days -- ending
73

70

74

79

77

5
 %
Other
 
 
 
 
 
 
WW shipping revenue
$
1,701

$
1,299

$
1,399

$
1,494

$
2,328

37
 %
WW shipping revenue - % of net sales (6)
6.1
 %
6.1
%
6.6
%
6.4
%
7.0
%
N/A

WW shipping costs
$
3,049

$
2,309

$
2,340

$
2,720

$
4,170

37
 %
WW shipping costs - % of net sales (6)
10.9
 %
10.9
%
11.0
%
11.7
%
12.5
%
N/A

WW net shipping costs
$
1,348

$
1,010

$
941

$
1,226

$
1,842

37
 %
WW net shipping costs -- % of WW net sales (6)
4.8
 %
4.8
%
4.4
%
5.3
%
5.5
%
N/A

WW paid units -- Y/Y growth
20
 %
20
%
22
%
26
%
26
%
N/A

WW seller unit mix -- % of WW paid units
43
 %
44
%
45
%
46
%
47
%
N/A

Employees (full-time and part-time; excludes contractors & temporary personnel)
154,100

165,000

183,100

222,400

230,800

50
 %
______________________________
(6)
Includes North America and International segment net sales.




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 Payments customers, AWS 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. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period.

AWS Customers

•
References to AWS customers mean unique AWS customer accounts, which are unique e-mail addresses that are eligible to use AWS services. This includes AWS accounts in the AWS free tier. Multiple users accessing AWS services via one account are counted as a single account. Customers are considered active when they have had AWS usage activity during the preceding one-month period.
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.amazon.com.br, www.amazon.in, www.amazon.com.mx, www.amazon.com.au, www.amazon.nl, www.diapers.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 AWS, certain acquisitions, rental businesses, or advertising businesses, or Amazon gift cards.

Contacts:
 
 
 
Amazon.com Investor Relations
 
Amazon.com Public Relations
Phil Hardin, 206/266-2171
 
Ty Rogers, 206/266-7180
www.amazon.com/ir
 
www.amazon.com/pr

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