AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31 2015 14.557 5 8 .658 5 2014 $ 2013 8 .084 596 (241) 274 6,281 2,119 4.746 1,497 129 3,253 1,134 114 155 245 (316 166 (156) (78) (119) (6) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD OPERATING ACTIVITIES: Net income (loss) 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 Stock-based compensation Other operating expense (income), net Losses (gains) on sales of marketable securities, net Other expense (income), net Deferred income taxes Excess tax benefits from stock-based compensation Changes in operating assets and liabilities: Inventories Accounts receivable, net and other Accounts payable Accrued expenses and other Additions to unearned revenue Amortization of previously uneamed revenue Net cash provided by (used in operating activities INVESTING ACTIVITIES: Purchases of property and equipment, including internal-use software and website development, net Acquisitions, net of cash acquired, and other Sales and maturities of marketable securities Purchases of marketable secunities Net cash provided by (used in) investing activities (1,410) (846) 1.888 (2,187) (1,755) 4.294 913 7,401 (6.109) 11,920 (1.193) (1,039) 1,759 706 4,433 (3,692) 6,842 736 2.691 (2,292) 5,475 (4,589) (795) 3,025 (4,091) (6,450) (4,893) (979) 3,349 (2,542) (5,065) (3.444) (312) 2,306 (2,826) (4.276) LD-2 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) 2015 Year Ended December 31, 2014 (241) S 2013 596 S 27 (210) (325) Net income (loss) Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of $10, $(3), and $(20) Net change in unrealized gains (losses) on available-for-sale securities: Unrealized gains (losses), net of tax of $(5), $1, and $3 Reclassification adjustment for losses (gains) included in "Other income (expense), net," net of tax of $0, $(1), and $(1) Net unrealized gains (losses) on available-for-sale securities Total other comprehensive income (loss) Comprehensive income (loss) $ (2) (212) 384 $ (326) (567) S See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2015 2014 15,890 $ 3,918 10,243 6,423 36,474 21,838 3,759 3,373 65,444 $ 14,557 2,859 8,299 5,612 31,327 16,967 3,319 2.892 54,505 $ ASSETS Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other Uneamed revenue Total current liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, $0.01 par value: Authorized shares 500 Issued and outstanding shares none Common stock. $0.01 par value: 20,397 $ 10,384 3,118 33,899 8,235 9.926 16,459 9,807 1,823 28,089 8,265 7,410 Authorized shares 5,000 Issued shares - 494 and 488 Outstanding shares 471 and 465 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity (1,837) 13,394 (723) 2,545 13,384 65,444 $ (1,837) 11,135 (511) 1,949 10,741 54,505 $ See accompanying notes to consolidated financial statements. Consolidated Statements of Income Fiscal Years Ended January 31, 2015 2014 2013 $482,229 3,422 485,651 $473,076 3.218 $465,604 3047 476,294 468,651 365,086 93,418 27,147 358,069 91,353 26,872 352,297 88,629 27,725 2,161 300 (113) 2,348 24,799 2,072 263 (119) 2,216 24,656 1,977 272 (186) 2,063 25,662 (Amounts in millions, except per share data) Revenues: Net sales Membership and other income Total revenues Costs and expenses: Cost of sales Operating, selling general and administrative expenses Operating income Interest: Debt Capital leases Interest income Interest, net Income from continuing operations before income taxes Provision for income taxes: Current Deferred Total provision for income taxes Income from continuing operations Income from discontinued operations, net of income taxes Consolidated net income Less 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 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 Weighted average common shares outstanding: Basic Diluted Dividends declared per common share See accompanying notes. 8,504 (519) 7,985 16,814 285 8,619 (514) 8,105 16,551 144 16,695 (673) $ 16,022 7,976 (18) 7,958 17,704 52 17,756 (757) $ 16,999 17,099 (736) $ 16,363 $ $ $ 5.01 0.06 5.07 4.87 0.03 4.90 5.03 0.01 5.04 $ $ $ $ $ $ 4.99 0.06 5.05 4.85 0.03 4.88 5.01 0.01 5.02 $ $ $ 3,230 3,243 1.92 3,269 3,283 1.88 3,374 3,389 1.59 $ $ $ Consolidated Statements of Comprehensive Income Fiscal Years Ended January 31, 2015 2014 2013 $17,099 $16,695 $17,756 (736) (606) (684) (67) (73) 16,363 16,022 16,999 (3,146) 1,042 207 136 (Amounts in millions) Consolidated net income Less consolidated net income attributable to nonredeemable noncontrolling interest Less consolidated net income attributable to redeemable noncontrolling interest Consolidated net income attributable to Walmart Other comprehensive income (loss), net of income taxes Currency translation and other Derivative instruments Minimum pension liability Other comprehensive income (loss), net of income taxes Less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest Less other comprehensive income (loss) attributable to redeemable noncontrolling interest Other comprehensive income (loss) attributable to Walmart Comprehensive income, net of income taxes Less comprehensive income (loss) attributable to nonredeemable noncontrolling interest Less comprehensive income (loss) attributable to redeemable noncontrolling interest Comprehensive income attributable to Walmart See accompanying notes. (4,179) (470) (69) (4,718) 546 153 (2,786) 311 66 (2,409) 13,909 (295) (166) 1,012 (138) (51) 823 (4,172) 12,381 (190) 18,768 (822) (124) $17,822 $12,191 $13,613 Consolidated Balance Sheets As of January 31, 2015 2014 $ $ 9,135 6,778 45,141 2,224 7,281 6,677 44,858 1,909 460 (Amounts in millions) ASSETS Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Current assets of discontinued operations Total current assets Property and equipment: Property and equipment Less accumulated depreciation Property and equipment, net Property under capital leases: Property under capital leases Less accumulated amortization Property under capital leases, net 63,278 61,185 177,395 (63,115) 114,280 173,089 (57,725) 115,364 5,239 (2,864) 2,375 5,589 (3,046) 2,543 Goodwill Other assets and deferred charges Total assets 18,102 5,671 $203,706 19,510 6,149 $204,751 $ $ LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Obligations under capital leases due within one year Current liabilities of discontinued operations Total current liabilities 1,592 38,410 19,152 1,021 4,810 287 7,670 37,415 18,793 966 4,103 309 89 65,272 69,345 Long-term debt Long-term obligations under capital leases Deferred income taxes and other 41,086 2,606 8,805 41,771 2,788 8,017 Redeemable noncontrolling interest 1,491 Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive income (loss) Total Walmart shareholders' equity Nonredeemable noncontrolling interest Total equity Total liabilities, redeemable noncontrolling interest, and equity See accompanying notes. 323 2,462 85,777 (7,168) 81,394 4,543 85,937 $203,706 323 2,362 76,566 (2,996) 76,255 5,084 81,339 $204,751 Consolidated Statements of Shareholders' Equity and Redeemable Noncontrolling Interest Redeemable Accumulated Other Comprehensive income (Loss) $(1,410) Nonredeemable Noncontrolling Interest (Amounts in millions Total Walmart Shareholders Equity $71,315 16,999 Capital in Common Stock Excess of Shares Amount Par Value 3,418 $342 $3,692 - Equity Retained Earnings $68,691 16,999 Interest $ 404 $4,446 684 $75,761 17,683 823 823 961 (5,361) (7,341) (357) (5,361) (7,709) (5,361) (7,709) 276 (10) 1 332 469 (342) 5,395 595 285 3,620 - 469 (66) 81,738 16,617 3,314 (587) 76,343 72,978 16,022 16,022 (2,409) (2,409) (311) (2,720) Balances as of February 1, 2012 Consolidated net income Other comprehensive income, net of income taxes Cash dividends declared ($1.59 per share) Purchase of Company stock Nonredeemable noncontrolling interest of acquired entity Other Balances as of January 31, 2013 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared ($1.88 per share) Purchase of Company stock Redemption value adjustment of redeemable noncontrolling interest Other Balances as of January 31, 2014 Consolidated net income Other comprehensive income, net of income taxes Cash dividends declared ($1.92 per share) Purchase of Company stock Purchase of redeemable noncontrolling interest Other Balances as of January 31, 2015 See accompanying notes - (294) (6,139) (6,254) (6,139) (6,557) (6,139 (6,557) - (1,019) 1.0 (1,019) 55 2,362 (1,019) (581) (595) 3,233 323 (41) 76,566 16,363 (2,996) 1,491 76,255 16,363 5,084 736 81,339 17,099 - - - (4,172) (4,172) (546) (4,718) (6,185) (13) (1) (29) (6,185) (950) (980) (6,185) (980) z (1,491) = 113 $81,394 (731) $4,543 (618) $85,937 3,228 $323 $ 2,462 $85,777 $17,168) $ - Consolidated Statements of Cash Flows Fiscal Years Ended January 31, 2015 2014 2013 (Amounts in millions) Cash flows from operating activities: Consolidated net income Income from discontinued operations, net of income taxes $ 17,099 (285) 16,814 $ 16,695 (144) 16,551 $17,756 (52) 17,704 9,173 (503) 8,870 (279) 938 8,478 (133) 602 785 Income from continuing operations Adjustments to reconcile income from continuing operations to net cash provided by operating activities. Depreciation and amortization Deferred income taxes Other operating activities Changes in certain assets and liabilities, net of effects of acquisitions: Receivables, net Inventories Accounts payable Accrued liabilities Accrued income taxes Net cash provided by operating activities (569) (1,229) 2,678 1,249 166 (566) (1,667) 531 103 (1,224) 23,257 (614) (2,759 1,061 271 981 25,591 28,564 (12,174) 570 671 (13,115) 727 Cash flows from investing activities: Payments for property and equipment Proceeds from the disposal of property and equipment Proceeds from the disposal of certain operations Other investing activities Net cash used in investing activities (12,898) 532 (192) (138) (12,526) (271) (12,637) (11,125) 911 7,072 (4,968) (6,139) Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Payments of long-term debt Dividends paid Purchase of Company stock Dividends paid to noncontrolling interest Purchase of noncontrolling interest Other financing activities Net cash used in financing activities (6,288) 5,174 (3,904) (6,185) (1,015) (600) (1,844) (409) (15,071) 2,754 211 (1,478) (5,361) (7,600) (282) (6,683) (132) (426) (296) (260) (10,789) (58) (11,946) Effect of exchange rates on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (514) 1,854 7,281 9,135 (442) (500) 7,781 $ 7,281 223 1,231 6,550 $ 7,781 $ The financial statements of Amazon.com, Inc.'s are presented in Appendix D. Click here to view Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Click here to view Appendix E. Based on the information contained in these financial statements, determine each of the following for each company: (al) The percentage increase (decrease) in (i) net sales and (ii) net income from 2014 to 2015. (Round answers to 1 decimal places, e.g. 15.2%. Enter negative amounts using either a negative sign preceding the number e.g. -15.2% or parentheses e.g. (15.2)%.) Amazon.com Wal-Mart Stores Percentage increase (decrease) in net sales 16.8 -347.3 % % 1.9% % Percentage increase (decrease) in net income -10.4 (a2) The percentage increase in (i) total assets and (ii) total stockholders' (shareholders') equity from 2014 to 2015. (Round answers to 1 decimal place, e.g. 15.2%. Enter negative amounts using either a negative sign preceding the number e.g. -15.2% or parentheses e.g. (15.2)%.) Amazon.com Wal-Mart Stores Percentage increase (decrease) in total assets 16.7 .51 Percentage increase (decrease) in total stockholders' equity 19.7 5.6 % (a3) The basic earnings per share and price-earnings ratio for 2015. (For both Amazon and Wal-Mart, use the basic earnings per share.) Amazon's common stock had a market price of $398.79 at the end of fiscal-year 2015, and Wal-Mart's common stock had a market price of $74.68. (Round basic earnings per share to 2 decimal places, e.g. 15.25 and price-earning ratio to 1 decimal place, e.g. 15.2. Enter negative amounts using either a negative sign preceding the number e.g. -15.2% or parentheses e.g. (15.2)%.) Amazon.com Wal-Mart Stores Basic earnings per share 1.25 1.25 15.05 Price-earnings ratio 319.0 times 14.8 times