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Amazon.com, Inc.'s financial statements are presented in Appendix D. Click here to view Appendix D. Financial statements of Walmart, Inc. are presented in Appendix E.
Amazon.com, Inc.'s financial statements are presented in Appendix D. Click here to view Appendix D. Financial statements of Walmart, Inc. are presented in Appendix E. Click here to view Appendix E. The complete annual reports of Amazon and Walmart, including the notes to the financial statements, are available at each company's respective website. (a) Based on the information contained in these financial statements, compute free cash flow for each company. (Enter answers in millions. Show amounts that decrease cash flow with either a-signe.g. 15,000 or in parenthesis eg. (15,000N) Walmart Inc. Consolidated Statements of Comprehensive Income (Amounts in millions) Consolidated net income Fiscal Years Ended January 31, Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Other comprehensive income (loss), net of income taxes Currency translation and other Net investment hedges Cash flow hedges Minimum pension liability Unrealized gain on available-for-sale securities Other comprehensive income (loss), net of income taxes Other comprehensive (income) loss attributable to noncontrolling interest Other comprehensive income (loss) attributable to Walmart \begin{tabular}{ccr} (226) & 2,540 & (3,027) \\ 272 & (405) & 413 \\ (290) & 437 & 21 \\ 131 & 147 & (397) \\ & 1,501 & 145 \\ \hline(113) & 4,220 & (2,845) \\ 188 & (169) & 210 \\ \hline 75 & 4,051 & (2,635) \\ \hline \end{tabular} Comprehensive income, net of income taxes Comprehensive (income) loss attributable to noncontrolling interest Comprehensive income attributable to Walmart \begin{tabular}{rrr} 7,066 & 14,743 & 11,448 \\ (321) & (830) & (440) \\ & $13,913 & $11,008 \\ \hline \end{tabular} See accompanying notes. Walmart Inc. Consolidated Statements of Income Fiscal Years Ended January 31, 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 lease and financing obligations Interest income Interest, net Loss on extinguishment of debt Other (gains) and losses Income before income taxes Provision for income taxes Consolidated net income ConsolidatednetincomeattributabletononcontrollinginterestConsolidatednetincomeattributabletoWalmart(509)$6,670(661)$9,862(650)$13,643 Net income per common share: BasicnetincomepercommonshareattributabletoWalmartDilutednetincomepercommonshareattributabletoWalmart$2.262.283.28$4.383.29$ Weighted-average common shares outstanding: Basic Diluted Dividends declared per common share Prepaid expenses and other Total current assets Property and equipment: Property and equipment Less accumulated depreciation Property and equipment, net 61,8973,02359,6643,511 Property under capital lease and financing obligations: \begin{tabular}{lrr} Property under capital lease and financing obligations & 12,760 & 12,703 \\ Less accumulated amortization & (5,682) & (5,560) \\ \cline { 2 - 3 } Property under capital lease and financing obligations, net & 7,078 & 7,143 \\ Goodwill & 31,181 & 18,242 \\ Other long-term assets & 14,822 & 11,798 \\ Total assets & $219,295 & $204,522 \\ \hline \end{tabular} LIABILITIES AND EQUITY Current liabilities: \begin{tabular}{lrr} Short-term borrowings & $5,225 & $5,257 \\ Accounts payable & 47,060 & 46,092 \\ Accrued liabilities & 22,159 & 22,122 \\ Accrued income taxes & 428 & 645 \\ Long-term debt due within one year & 1,876 & 3,738 \\ Capital lease and financing obligations due within one year & 729 & 667 \\ \cline { 2 - 3 } Total current liabilities & 77,477 & 78,521 \end{tabular} Long-term debt Long-term capital lease and financing obligations Deferred income taxes and other Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss 43,5206,68311,98130,0456,7808,354 Consolidated Statements of Shareholders' Equity Walmart Inc. Consolidated Statements of Cash Flows (Amounts in millions) Cash flows from operating activities: Consolidated net income Adjustments to reconcile consolidated net income to net cash provided by operating activities: Depreciation and amortization Unrealized (gains) and losses (Gains) and losses for disposal of business operations Deferred income taxes Loss on extinguishment of debt Other operating activities Changes in certain assets and liabilities, net of effects of acquisitions: Fiscal Years Ended January 31, Cash flows from investing activities: PaymentsforpropertyandequipmentProceedsfromthedisposalofpropertyandequipmentProceedsfromthedisposalofcertainoperationsPurchaseofavailableforsalesecuritiesPaymentsforbusinessacquisitions,netofcashacquiredOtherinvestingactivities(10,344)519876(14,656)(31)(431)(10,051)3781,046(1,962(375)(27)(10,619)(2,463)(9,079)(13,896) Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt 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 Purchase of available for sale securities Payments for business acquisitions, net of cash acquired Other investing activities Net cash used in investing activities Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Repayments of long-term debt Premiums paid to extinguish 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 \begin{tabular}{rrr} (10,344) & (10,051) & (10,619) \\ 519 & 378 & 456 \\ 876 & 1,046 & 662 \\ & & (1,901) \\ (14,656) & (375) & (2,463) \\ (431) & (77) & (31) \\ \hline(24,036) & (9,079) & (13,896) \end{tabular} Effect of exchange rates on cash, cash equivalents and restricted cash Net increase (decrease) in cash, cash equivalents and restried cash Cash, cash equivalents and restricted cash at beginning of year Cash, cash equivalents and restricted cash at end of period \begin{tabular}{rrr} (53) & 4,148 & (1,673) \\ 15,872 & 7,476 & 137 \\ (3,784) & (13,061) & (2,055) \\ & (3,059) & \\ (6,102) & (6,124) & (6,216) \\ (7,410) & (8,296) & (8,298) \\ (431) & (690) & (479) \\ & (8) & (90) \\ (629) & (261) & (398) \\ \hline(2,537) & (19,875) & (19,072) \end{tabular} Supplemental disclosure of cash flow information: Income taxes paid Interest paid (438)487(452) Sre accompanying notes. Amaxon.com, Inc. Consolidated Statements of Cash Flows (in millions) CASH, CASH EQUTVALANTS, AND RESTRICTED CASH, BEGINNTNG OF PERIOD ORERATING ACTIVITIES: Net income Adjustments to reconcile net income to nct cash from operating activities: Depreciation of property and equipment and otber amortization, including capitalized content costs Stock-based compensation Other operating expense, net Other expense (income), net Deferred incorne taxes Changes in operating assets and liabilities: Inveatories Accousts receivable, net and other Accounts payable Aecrued expenses and other Uneamed reveane Net cash provided by (used in) operating activities INVESIING ACTTVITIES: Purchases of property and equipment Proceeds from property and equipment incentives Ncquisitions, net of cash acquired, and other Sales and maturities of marketable securities Purchases of marketable securities Net cash provided by (ascd in) investing activities FINANCING ACITVTIIES: Proceeds from long-term debt and other Repayments of lonz.term debt and other Principal repayments of capital lease obligations Principal repayments of finance lase obligations Net cash provided by (used in) financing activities Foreign currency effect on casb, cash cquivalents, and restricted cash Net increase (decrease) in cash, cash cquivalents, and restricted cash CASH, CASH EQUTVALENTS, AND RESTRICTED CASH, END OF PERIOD SUPPLEMENTAL. CASH FLOW INFORMATION: Cash paid for interest on long-term debt Cash paid for interest on capital and finance lease obligations Cash paid for income taxes, net of refunds Property and equipment acquired under eapital leases Property and equipment acquired under build-to-suit leases Sce accompanying notes to consolidated financial statements: \begin{tabular}{rrr} (3.716) & 9.928 & (7,686) \\ (212) & 713 & (858) \\ \hline 3.759 & 10,3171,922 \\ \hline$19.934 & $21,856 & $32,173 \\ \hline$290 & $328 & $854 \\ 206 & 319 & 575 \\ 412 & 957 & 1,184 \\ 5.704 & 9,637 & 10,615 \\ 1,209 & 3.541 & 3,651 \end{tabular} Amazon.com, Ine. Consolidated Statements of Operations (in millions, except per share data) Net product sales Net service sales: Total net sales Operating expenses: Cost of sales Fulfilment Marketing. Technology and content General and administrative Other operating expense, not Total operating expenses Operating income Interest income Year Ended December 31 , Interest expense Other income (expense), net Total non-operating income (expense) Income before income taxes Provision for income taxes Equity-method investment activity, net of tax Net incotne Basie earnings per share Diluted camings per share Weighted-average shares used in computation of earnings per share; Basic: Diluted See accompanying notes to eonsolidated finabeial staterents. Amazon.com, Inc, Consolidated Statements of Comprehensive Income (in millions) Net income Other comarehensive income (loss): Foreign currency trandation adjustments, net of tax of $(49),$5, and $6 Net change in uarealized gains (losses) on available-for-sale debt securities: Unrealized gains (losses), net of tix of $(12). 55. and So Reclasiffeation adjastment for losses (guins) included in "Other income (expense), net," net of tax of \$o, so, and so Net unrealized gains (losses) on avallable-for-sale debt securities Total other comprehensive income (loss) Comprehensive income Year Ended December 31, $2,3732016$3.0392017$10.0732018 See accompanying notes to consolidated financial statemente. Amazon.com, Inc. Consolidated Balance Sheets (in millions, except per share data) December3i, ASSETS Current assets: Cath and eath equivalents Marketable securities (270)533 (538) \( \frac{\text { December 34, }}{2017}-\frac{2018}{\hline} \) 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 Unearned 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 share 500 Issued and outstanding shares-none Common stock, \$0.01 par value: Authorized shares 5,000 Issued shares 507 and 514 Outstanding shares 484 and 491 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity \begin{tabular}{rr} $34,616 & $38,192 \\ 18,170 & 23,663 \\ 5,097 & 6,536 \\ \hline 57,883 & 68,391 \\ 24,743 & 23,495 \\ 20,975 & 27,213 \end{tabular} Amaron-com, Inc. Consolidated Statements of Stockholders' Fquity
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