Mod 10 A more detailed analysis of the financial reports

1. Mod 10Amoredetailedanalysisofthefinancialreports SPECIALTY RETAIL - AMAZON Sophie Yu Section 2

2. Agenda–Accountstobeexpanded • ConsolidatedBalanceSheet • Propertyandequipment,net • Goodwill • Long-termdebt • Otherlong-termliabilities • Commitments and Contingencies • Consolidated Balance Sheet • Sales and expenses by segments

3. Consolidated Balance Sheet

4. Property and equipment • Acquired corporate headquarters • Purchased buildings and equipment previously accounted as financing leases • Increased construction in progress

5. GOODWILL • In 2013, acquired several companies in cash • Resulting in goodwill of $103 million • The aggregated effect was not material • No goodwill impairment • Adjustments were due to foreign currency exchange rate change

6. Long-term debt • Excluded the unamortized discount on the Notes $23 million • $3,191 (B/S) + $23 = $3,214 • Bloomberg debt rate: 1.7% • Minimal increase in long-term debts

7. Other Long-term liabilities • Increase was primarily due to significant increase in capital and financing leases • Leases for technology infrastructure and buildings

8. Commitments and contingencies • Off B/S items but MATERIAL! • Could be shown on the B/S as liabilities in the near future

9. Consolidated Income statement

10. OPERATING INCOME BY SEGMENT

11. Questions?