AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 2816 2017 CASH CASH EQUIVALENTS, AND RESTRICTED CASIL, BEGINNING OF PERIOD 2018 $ 16.175 5 19,934 S 21,856 OPERATING ACTIVITIES Net income 2,371 3,033 10,073 Adjustments to reconcile net income to net cass from operating activities Depreciation of property and equipment and other amortization, including capitalized content costs 8,116 11,478 15341 Stock-based compemation 2975 4.215 5,418 Other operating expense, net 160 202 274 Other expense (income), net Deferred income taxes Changes in operating acts and liabilities Inventories Accounts receivable, net and other 120) (292) 219 (246) (29) 441 (1,426) (3.583) (1314) (3,436) (4,780) (4,615) Accounts payable 5,030 7,100 3,263 Accrued expenses and other 1,724 283 472 Unearned revenue 1955 738 1,151 Net cash provided by (used in) operating activities 17,203 18,365 30,723 INVESTING ACTIVITIES: Purchases of property and equipment (7,804) (11,955) (13,427) Proceeds from property and equipment incentives 1,067 1,397 2,104 Acquisitions, net of cash acquired, and other (116) (13,972) (2,186) Sales and maturities of marketable securities 4,577 9577 8,240 Purchases of marketable securities (7240) (12,731) (7,100) Net cash provided by (used in) investing activities (9,516) (27,084) (12.369) FINANCING ACTIVITIES: Proceeds from long-term debt and other 618 16.228 768 Repayments of long-term debt and other (327) (1,301) 1668) Principal repayments of capital lease obligations Principal repayments of finance lease obligations Net cash provided by (used in) financing activities Foreign currency effect on cash, cash equivalents, and restricted cash Net increase (decrease) in cash, cash equivalents, and restricted cash CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD (3,860) (4.799) (7,449) (147) (200) (337) (3,716) 9928 (7,686) (212) 713 (351) 3,759 1,922 10,317 19,934 S 21,356 3 32.373 SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for interest on long-term debt Cast paid for interest on capital and finance lease obligations Cash paid for income taxes, net of refunds Property and equipment acquired under capital case Property and equipment acquired under build-to-suit leases 290 S 328 S 854 206 319 375 412 957 1,194 5,704 95637 10,615 1.209 3,541 3,641