AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD OPERATING ACTIVITIES Net income (loss) Your Ended December M 214 2016 8.658 $ 14.557 $ 15,890 (241) 916 2.371 Adjustments to reconcile net income (loss) to met cash from eperating activities: Depreciation of property and equipment, inchadeg imemal-use software and website development, and other amortization, including capkalized coment costs 4,746 6,281 8.116 Shock-based compensation 1497 2.119 2.975 129 155 160 Other operating expense, net Other expense (income), net 59 250 (20) Deferred Income taxes (316) (246) Excess tax benefits from stock-based compensation (6) (119) (829) Changes in operating sets and liabilities Inventories Accounts receivable, set and other Accounts payable Accrued expenses and other (1.193) (2,187) (1426) (1039) (1755) (3367) 1,759 4.294 5.00 706 913 1,724 Additions to uncared reven Amortization of previously uneased revenue Net cash provided by (used in) operating activities INVESTING ACTIVITIES: 4.433 7.401 11,931 (3.692) (6109) (9.976) 6.342 11,920 16,443 Purchases of property and equipment, incalling internal-use software and website Purchases of marketable securities development, net Acquisitions, set of cash acquired, and ether Sales and maturities of marketable securities Net cash provided by (uod in) investing activities FINANCING ACTIVITIES Excess tax benefits from stock-based compensation (4,393) (4,589) (6,737) (979) (795) (116) 3349 3305 4.733 (2.542) (4.0911 (1.756) 15.065 (6.450 09.176 119 129 Proceeds from long-term debt and other Repayments of long-term debt and ser 6359 193 621 (5131 (LAS2) (354) Principal repayments of capital lease obligations (1,2851 (2,462) 0,500) Principal payments of fence lease obligations Net cash provided by sed in) financing activities (135) (121) (147) 4432 0,763) (2.911) Forvign curncy effect on cash and cash equival Nes increase (cae) in anh and ch equivalents CASH AND CASH EQUIVALENTS, END OF PERIOD SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for intered on long-term dhe (310) (374) (212) 5899 1331 3,444 34.357 3 33.390 S 19,334 S 325 S 290 Cash paid for interest on capital and finance lane obligation Cab paid for income sines, set of refunds 153 206 177 273 412 Prupcity and equipment acquirol under capital lets ADOS 4.717 5,794 Property and pipet acpired under build to sit eine 320 541 1,209 See accompanying notes to consolidated financial statements AMAZON.COM. INC AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) Year Ended December 31, 2014 2015 2016 Net product sales Net service sales Total net sales Operating expenses: Cost of sales Fulfillment Marketing 70,080 S 79,268 $ 94,665 18,908 27,738 41,322 88,988 107,006 135,987 62,752 71,651 88,265 10,766 13,410 17,619 4,332 5,254 7,233 Technology and content 9.275 12,540 16,085 General and administrative 1.552 1,747 2,432 Other operating expense, net 133 171 167 Total operating expenses 88,810 104,773 131,801 Operating income 178 2,233 4.186 Interest income 39 50 100 Interest expense (210) (459) (484) Other income (expense), net Total non-operating income (expense) Income (loss) before income taxes (118) (256) 90 (289) (665) (294) (111) 1,568 3,892 Provision for income taxes i (167) (950) (1,425) Equity-method investment activity, net of tax 37 (22) (96) Net income (loss) (241) $ 596 $ 2,371 Basic earnings per share (0.52) S 1.28 S 5.01 Diluted earnings per share (0.52) $ 1.25 $ 4.90 Weighted-average shares used in computation of earnings per share: Basic 462 467 474 Diluted 462 477 484 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) Year Ended December 31, 2014 2015 2016 (241) S 596 $ 2,371 Net income (loss) Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of $(3), $10, and $(49) Net change in unrealized gains (losses) on available-for-sale securities: Unrealized gains (losses), net of tax of $1, $(5), and $(12) Reclassification adjustment for losses (gains) included in "Other income (expense), net," net of tax of $(1), $0, and $0 (325) (210) (279) 2 (7) (3) Net unrealized gains (losses) on available-for-sale securities Total other comprehensive income (loss) (1) (2) 17 (326) (212) (262) Comprehensive income (loss) $ (567) S 384 $ 2,109 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) ASSETS December 31, 2015 2016 Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net $ 15.890 $ 19.334 3,918 6,647 10,243 11,461 5,654 8.339 35,705 45.781 21,838 29,114 Goodwill 3.759 3,784 Other assets 3,445 4,723 Total assets $ 64,747 S 83,402 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current liabilities Long-term debt S 20,397 $ 25,309 10,372 13,739 3,118 4,768 33,887 43,816 8,227 7,694 9.249 12,607 Other long-term liabilities Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, $0.01 par value: Authorized shares AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Balance as of January 1, 2014 Net loss Other comprehensive income (loss) Exercise of common stock options Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Issuance of common stock for acquisition activity Balance as of December 31, 2014 Net Income Other comprehensive income (loss) Exercise of common stock options Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Issuance of common stock for acquisition activity Balance as of December 31, 2015 Net income Other comprehensive income (loss) Exercise of common stock options 1 1 Total Stockholders Equity Retained $ (1.837) $ 9.573 $ (185) S 2,190 S (241) (326) 9 9,746 (241) (326) 2 1510 1,510 44 44 (1.837) 11.135 (511) 1.949 10,741 11 596 596 (212) - (212) 4 119 2,131 119 I 2,131 (1.837) 13.394 2.545 13.384 2,371 2.371 (262) (262) I 829 2,962 2.962 477 S (1.837) S 17,186 S (985) S 4,916 S 19.285 See accompanying notes to comolidated financial statements. Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31, 2016 (Amounts in millions, except per share datal Revenues: Net sales Membership and other income Wal-Mart Stores, Inc. Consolidated Statement of Income Fiscal Years Ended January 31, 2017 2016 2015 $481,317 $478,614 $482,229 4,556 3,516 3,422 485,873 482,130 485,651 Total revenues Costs and expenses: Cost of sales 361,256 360,984 365,086 Operating, selling general and administrative expenses 101,853 97,041 93,418 Operating Income 22,764 24,105 27,147 Interest: Debt 2,044 2,027 2,161 Capital lease and financing obligations 323 521 300 Interest income Interest, net Income from continuing operations before Income taxes Provision for Income taxes Income from continuing operations Income from discontinued operations, net of income taxes Consolidated net Income Consolidated net Income attributable to noncontrolling interest Consolidated net income attributable to Walmart Basic net income per common share: Basic Income per common share from continuing operations attributable to Walmart Basic income per common share from discontinued operations attributable to Walmart Basic net income per common share attributable to Walmart (100) (81) (113) 2,267 2,467 2348 20,497 21,638 24,799 6,204 6.558 7,985 14,293 15,080 16814 285 14,293 15,080 17.099 (650) (386) (736) $ 13,643 $ 14,694 $ 16.363 $ 4.40 $ 4.58 $ 501 0.06 $ 4.40 $ 4.58 $ 5.07 Diluted net income per common share: Diluted income per common share from continuing operations attributable to Walmart Diluted income per common share from discontinued operations attributable to Walmart Diluted net income per common share attributable to Walmart $ 4.38 4.57 4.99 006 $ 4.38 S 4.57 5 5.05 Weighted-average common shares outstanding: Basic Diluted Dividends declared per common share See accompanying notes 3,101 3,112 3,207 3,217 3,230 3.243 $ 2.00 $ 1.96 $ 1.92 See accompa Wal-Mart Stores, Inc. Consolidated Statement of Comprehensive Income Fiscal Years Ended January 31, 2017 2016 2015 (Amounts in millions) Consolidated net income $14,293 $15,080 $17,099 Less consolidated net income attributable to nonredeemable noncontrolling interest (650) (386) (736) Consolidated net income attributable to Walmart 13,643 14,694 16.363 Other comprehensive Income (loss), net of income taxes Currency translation and other (2.882) (5,220) (4,558) Net investment hedges 413 366 379 Cash flow hedges 21 (202) (470) Minimum pension lability (397) 86 (69) Other comprehensive Income (loss), net of Income taxes (2,845) (4.970) (4,718) Less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest 210 541 546 Other comprehensive income (loss) attributable to Walmart (2,635) (4.429) (4,172) Comprehensive Income, net of income taxes 11.448 10110 12.381 Less comprehensive income (loss) attributable to nonredeemable noncontrolling interest (440) 155 (190) Comprehensive income attributable to Walmart $11,008 $10.265 $12.191 See accompanying notes Wal-Mart Stores, Inc. Consolidated Balance Sheets As of January 31, 2017 2016 Amourts in millions ASSETS Current assets Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets Property and equipment: Property and equipment Less accumulated depreciation Property and equipment, net $ 6,867 $ 8,705 5,835 5,624 43,046 44,469 1,941 1,441 57,589 60,239 179,492 176,958 (71,782) (66,787) 107,710 110,171 Property under capital lease and financing obligations Property under capital lease and financing obligations Less accumulated amortization 11,637 11,096 (5,169) (4,751) Property under capital lease and financing obligations, net 6,468 6,345 Goodwill 17,037 16,695 Other assets and deferred charges 9,921 6,131 Total assets $198,825 $199,581 LIABILITIES AND EQUITY Current liabilities Short-term borrowings Accounts payable $ 1,099 41,433 $ 2,708 38,487 Accrued abilities 20,654 19607 Accrued income taxes 921 521 Long-term debt due within one year 2,256 2,745 Capital lease and financing obligations due within one year 565 551 Total current liabilities 66,928 64,619 Long-term debt 36,015 38,214 Long-term capital lease and financing obligations 6,003 5,816 Deferred income taxes and other 9,344 7,321 Commitments and contingencies Equity Common stock Capital in excess of par value Retained eamings Accumulated other comprehensive loss Total Walmart shareholders' equity Nonredeemable noncontrolling interest Total equity Total liabilities and equity See accompanying hos 305 317 2,371 1805 89.354 90,021 (14,232) (11.597) 77,798 80.546 2.737 3,055 80.535 83611 $198,825 5199581 Wal-Mart Stores, Inc. Consolidated Statements of S hareholders' Equity and Redeemaole Noncontrolling Interest Toal (Amounts in milliond Balances as of February 1, 2014 Consolidated net income Other comprehensive loss net of income taxes Cash dividends declared (51.92 per share) Common Stock Shares Comprehens Shareholder Lo Equity Nonredeemable Noncontrolling Interest Redeemable Total Noncontrolling Equity Interest 3,233 5323 $2362 $76.566 $0.996) $76.255 $5,084 $81,339 $1,491 16363 16.363 736 17,099 I Purchase of Company stock (13) al Purchase of redeemable noncontrolling Interest Other 129 1 18 19 - (4.172) (4.172) (546) (4.718) 1 (6,185) (185) (6,185) 950 (980) (960) (1.491) (17) Balances as of January 31, 2015 3,228 323 2.462 85.777 (7,168) Consolidated net income 14694 1181 113 (731) (618) 81394 4543 85,937 14694 386 15,080 Other comprehensive loss, Other net of income taxes Cash dividends declared ($1.96 per share) Purchase of Company stock Cash dividend declared to noncontrolling interest Balances as of January 31, 2016 Consolidated net income Other comprehensive loss, 1 (4.429) (4.429) (541) (4.970) (6.294) (102) (4,148 H (6.294) (4256) I (6,294) (4,256) (691) (691) (1) (555) (563) (632) (1,195) 3,162 317 1,805 90,021 (11,597) 80,546 3,065 83,611 13,643 13,643 650 14,293 net of income taxes (2,635) (2,635) (210) (2,845) Cash dividends declared ($2.00 per share) (6.216) (6,216) Purchase of Company stock (120) (12) (174) (8,090) (8.276) 11 (6,216) (8,276) H Cash dividend declared to noncontrolling interest Other 740 Balances as of January 31, 2017 3,048 See accompanying notes 5305 52.371 (4) 589,354 736 15191 (249) (519) 487 $14,232) $77,798 $2.737 $80,535 $ Wal-Mart Stores, Inc. Consolidated Statements of Cash Flow Fiscal Years Ended January 31, Amounts in milliond Cash flows from operating activities: Consolidated net income Income from discontinued operations, net of income taxes Income from continuing operations 2017 2016 2015 $14,293 $15,000 $17,099 (285) 14.293 15,080 16814 Adjustments to reconcile income from continuing operations to net cash provided by operating activities Depreciation and amortization 10,080 9,454 9,173 Deferred income taxes 761 1672) (503) Other operating activities 206 1,410 785 Changes in certain assets and abilities, net of effects of acquisitions Receivables, net (402) (19) 1569 Inventories 1,021 (703) (1229) Accounts payable 3,942 2008 2,678 Accrued liabilities Accrued Income taxes Net cash provided by operating activities 1,137 1,303 1249 492 (472) 166 31,530 27.389 28564 Cash flows from investing activities: Payments for property and equipment (10,619) 01477) (12.174) Proceeds from the disposal of property and equipment 456 635 570 Proceeds from the disposal of certain operations 662 246 671 Purchase of available for sale securities (1,901) Investment and business acquisitions, net of cash acquired (2,463) Other Investing activities (122) (79) (192) Net cash used in investing activities (13.987) (10675) (11,125) Cash flows from financing activities: Net change in short-term borrowings (1,673) 1235 16.288) Proceeds from issuance of long-term debt 137 39 5,174 Payments of long-term debt (2,055) (4432) (3.904) Dividends paid (6,216) (6294) 185) Purchase of Company stock (8,296) (4.112) (1,015) Dividends paid to noncontrolling interest (479) (719) (600 Purchase of noncontrolling interest 190) (1.326) (1844) Other financing activities (255) 1513) (409) Net cash used in financing activities (18,929) 016122) (15.071) Effect of exchange rates on cash and cash equivalents (452) (1022) 1514) Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year (1,838) (430) 1854 8,705 9.135 7281 Cash and cash equivalents at end of year $6,867 $ 8705 $9,135 Supplemental disclosure of cash flow information Income taxes paid Interest paid Ser accompanying notes 4.507 8111 8.169 2.351 2540 2433 (1) Profit margin for 2016. (For Amazon, use "Total net sales.") (Show (15.2)%.) Amazon.com Wal-Mart Stores Profit margin % % (2) Gross profit for 2016. (Enter amounts in millions.) Gross profit Amazon.com $ Wal-Mart Stores $ EA (3) Gross profit rate for 2016. Amazon.com Wal-Mart Stores Gross profit rate % 200 % (4) Operating income for 2016. (Enter amounts in millions.) Operating income (000's) Amazon.com $ Wal-Mart Stores $ (5) Percentage change in operating income from 2015 to 2016. (Show eg. (15.2)%.) Amazon.com Wal-Mart Stores Percent change in operating income % do %