Amazon.com, Inc.'s financial statements 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, compute free cash flow for Amazon at December 31, 2016 and Wal-Mart for January 31, 2017.(Show a negative free cash flow with either a-sign e.g.-15,000 or in parenthesis es. (15,000). Enter amounts in millions.) Amazon.com, Inc. Wal-Mart Stores, Inc. Free cash flow S 2014 2016 15,890 2,371 8,116 2,975 160 (20) (246) (829) AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 2015 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 14,357 S OPERATING ACTIVITIES: Net income (loss) (241) 596 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 4,746 6.281 Stock-based compensation 1.497 2.119 Other operating expense, net 155 Other expense (income), net Deferred income taxes (316) Excess tax benefits from stock-based compensation (6) (119) Changes in operating assets and liabilities: Inventories (1.193) (2.187) Accounts receivable, net and other (1,039) (1.755) Accounts payable 1.759 4.294 Accrued expenses and other 706 913 Additions to unearned revenue 7.401 Amortization of previously uncanned revenue (6,109) Net cash provided by (used in) operating activities 11.920 INVESTING ACTIVITIES: Purchases of property and equipment, including internal use software and website development, net (4.893) (4.589) Acquisitions, net of cash acquired, and other (979) (795) Sales and maturities of marketable securities 3.149 3,025 Purchases of marketable securities (4,091) Net cash provided by (used in investing activities (6.450) FINANCING ACTIVITIES: Excess tax benefits from stock-based compensation Proceeds from long-term debt and other (1.426) (3,367) 5.030 1.724 11.931 19.976) 16.443 6. 42 (6,737) (116) 4,733 (7.756) (9,876 ( 2 (5. 5) (1,193) (1,039) 1,759 706 4,433 (3,692) 6,842 (2.187) (1.755) 4,294 913 7,401 (6,109) 11,920 (1,426) (3,367) 5,030 1,724 11,931 (9,976) 16,443 (4,893) (979) 3,349 (2.542) (5.065) (4.589) (795) 3,025 (4,091) (6.450) . (6,737) (116) 4.733 (7.756) (9,876) Changes in operating assets and liabilities: Inventories Accounts receivable, net and other Accounts payable Accrued expenses and other Additions to uneared 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, nei Acquisitions, net of cash acquired, and other Sales and maturities of marketable securities Purchases of marketable securities Net cash provided by (used in) investing activities FINANCING ACTIVITIES: Excess tax benefits from stock-based compensation Proceeds from long-term debt and other Repayments of long-term debt and other 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 and cash equivalents Net increase (decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS, 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 capital leases Property and equipment acquired under build-to-suit leases 829 6.159 119 353 (1.652) (2.462) (354) (3.860) (147) (2.911) (374) (212 3.444 15.890S 19.334 325 153 273 412 4.00 4.717 544 5,704 1.209 920 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) 2016 Year Ended December 31, 2014 2015 70,080 $ 79,268 $ 18,908 27,738 88,988 107,006 94,665 41,322 135,987 62,752 10,766 4,332 9,275 Net product sales Net service sales Total net sales Operating expenses: Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense, net Total operating expenses Operating income Interest income Interest expense Other income (expense), net Total non-operating income (expense) Income (loss) before income taxes Provision for income taxes Equity-method investment activity, net of tax 71,651 13,410 5,254 12,540 1.747 171 104,773 2.233 50 (459) (256) (665) 1.568 (950) (22) 88,265 17.619 7,233 16,085 2,432 167 131,801 4,186 100 28.810 (484) 00 (289) (167) (294) 3.892 (1.425) (96) 107,006 135,987 71,651 13,410 5,254 12,540 1,747 171 04.773 88,265 17.619 7,233 16,085 2,432 167 131.801 4.186 100 1.552 18/ 233 Total net sales 88,988 Operating expenses: Cost of sales 62,752 Fulfillment 10,766 Marketing 4.332 Technology and content 9,275 General and administrative Other operating expense, net Total operating expenses Operating income Interest income Interest expense (210) Other income (expense), net (118) (289) Total non-operating income (expense) Income (loss) before income taxes Provision for income taxes (167) Equity-method investment activity, net of tax 37 S (241) S Net income (loss) (0.52) S Basic earnings per share (0.52) S Diluted earnings per share Weighted average shares used in computation of eamings per share: 462 Basic 462 Diluted m inine nesto consolidated financial statements (484) 90 (294) ( 11) (459) (256) (665) 1.568 (950) (22) 596 S 1.28 S 1.25 $ 3.892 (1.425) (96) 2.371 5.01 4.90 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) Year Ended December 31, 2014 2015 (241) S 596'$ 2016 2,371 (325) (210) (279) Net income (loss) Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of S(3), S10, 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 S(I). SO, and $0 Net unrealized gains (losses) on available-for-sale securities ) Total other comprehensive income (loss) Comprehensive income (loss) S (1) (326) (567) $ (212) 384 S 2.109 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2015 2016 15,890 $ 3,918 10,243 5.654 35,705 21.838 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 STOCKHOLDE Current liabilities: Accounts payable Accrued expenses and other Uncanned revenue Total current liabilities nadam dhe 19,334 6,647 11,461 8,339 45,781 29,114 3.784 4,723 3.759 3,445 64,747 5 83,402 20,397 S 10,372 3.118 25,309 13.739 4,768 43.816 20,397 > 10,372 3,118 33,887 8,227 9,249 23,304 13,739 4,768 43,816 7,694 12,607 Accounts payavic 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 shares - 500 Issued and outstanding shares none Common stock, $0.01 par value: Authorized shares 5,000 Issued shares --- 494 and 500 Outstanding shares 471 and 477 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive loss Retained carings Total stockholders' equity Total liabilities and stockholders' equity (1.837) 13,394 (723) 2.545 13,384 64.747 S (1.837) 17.186 (985) 4,916 19.285 83,402 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in millions) Stack Aerated Total Comprehensive Retained Stockholders Income (Loss) Earnings Equity (185) $ 2.190 $ 9,746 (241) (241) 459 $ 9.5735 - (326 (326) (326) Il 1,510 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 1.837) 11.13 (11) 1999 10,741 596 (212) - (212) 119 1.S10 10,741 596 (212) 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 Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31, 2016 1112 111 116 2,131 2,131 1.837) 13.394 13,384 LIMIT 2,371 (262) 829 2062 2.962 5S (1.837) S 17.186 S 477 5 (985) $ 4.916 5 19,285 See accompanying notes to consolidated financial statements. Wal-Mart Stores, Inc. Consolidated Statement of Income Fiscal Years Ended January 31, 2017 2016 2015 $481,317 4,556 485,873 $478,614 3,516 482 130 $482.229 3.422 485,651 361,256 101,853 22,764 360 984 97041 24,105 365086 93,418 27,147 Amounts in milions 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 Income from continuing operations before income taxe 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 2,044 323 (100) 2,267 20,497 6,204 14,293 2,027 521 (81) 2467 21,638 6.558 15.080 2,161 300 (113) 2,348 24799 7,985 16,814 285 17,099 (736) S 16,363 14,293 (650) $ 13,643 15.080 (386) $ 14,694 $ 458 501 4.40 - 4. 40 $ 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 common share from discontinuitetut Waimat $ 4.38 457 499 0.06 $ 4.40 $ 458 $ 5.01 $ 4.40 458 3.0 basic net income per common are: 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 $ 4.38 $ 457 $ 499 $ 4.38 $ 4.57 $ 5.05 3,101 3,112 2.00 3,207 3217 1.96 3,230 3.243 1.92 $ $ $ See accompanying notes Wal-Mart Stores, Inc. Consolidated Statement of Comprehensive Income Fiscal Years Ended January 31, 2017 2016 2015 $14,293 $15.080 $17.099 (650) (386) (736) 13,643 14,694 16363 (Amounts in millions Consolidated net income less consolidated net income attributable to nonredeemable 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 Other comprehensive income (loss), net of income taxes Less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest Other comprehensive income (loss) attributable to Walmart (2.882) 413 15.220) 366 202 21 (4558) 379 4700 69 (4718) (397) 12.845) 210 12,635) (4970) 541 4429 546 4.172) OBHW 9 Minimum pension liability Other comprehensive income (loss), net of income taxes Less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest Other comprehensive income (loss) attributable to Walmart Comprehensive income, net of income taxes Less comprehensive income (loss) attributable to nonredeemable noncontrolling interest Comprehensive income attributable to Walmart (397) (2,845) 210 (69) (4.718) 546 (2,635) 11.448 (440) $11,008 86 (4,970) 541 (4,429) 10,110 155 $10.265 (4,172) 12381 (190) $12,191 See accompanying notes Wal-Mart Stores, Inc. Consolidated Balance Sheets As of January 31, 2017 2016 $ $ (Amounts 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 Property under capital lease and financing obligations: Property under capital lease and financing obligations Less accumulated amortization Property under capital lease and financing obligations net 6,867 5.835 43,046 1.941 57,689 8.705 5,624 44.469 1.441 60.239 179,492 (71.782) 107,710 176.958 166,787 110,171 11,637 (5,169) 6,468 11.096 14.751 Property under capital lease and financing obligations: Property under capital lease and financing obligations Less accumulated amortization Property under capital lease and financing obligations, net Goodwill Other assets and deferred charges Total assets 11,637 (5,169) 6,468 17,037 9,921 $198,825 11,096 (4.751) 6,345 16,695 6,131 $199,581 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Capital lease and financing obligations due within one year Total current liabilities $ 1,099 41,433 20,654 921 2,256 565 66,928 $ 2,708 38,487 19,607 521 2,745 551 64619 Long-term debt Long-term capital lease and financing obligations Deferred income taxes and other 36,015 6,003 9,344 38.214 5.816 7321 Commitments and contingencies 305 Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Nonredeemable noncontrolling interest 2,371 89,354 (14,232) 77,798 2,737 1,805 20.021 (11.597) 30.540 3.065 3,065 Nonredeemable noncontrolling interest Total equity Total liabilities and equity 2,737 80,535 $198,825 83,611 $199,581 See accompanying notes Wal-Mart Stores, Inc. Consolidated Statements of Shareholders' Equity and Redeemaole Noncontrolling Interest Common Stock Shares Amount Catalin Excess of Par Value Accumulated Other Comprehensive Loss $ (2996) - Retained Earnings $76,566 16,363 Total Walmart Shareholders' Equity $76,255 16,363 Nonredeemable Noncontrolling intest Total Equity $81,339 17.099 Redeemable Noncontrolling Interest $1.491 3.233 $323 $2,362 $5,084 736 (4.172) (4,172) (546 (4718) (6,185) (6.185) 1980) 980 (1.491) (Amounts in millions) Balances as of February 1, 2014 Consolidated net income Other comprehensive loss, 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 Consolidated net income Other comprehensive loss. net of income taxes Cash dividends declared (51.96 per share) Purchase of Company stock Cash dividend declared to noncontrolling interes (731) 1 3.228 15 - (7,168) - 85,777 14,694 4543 113 81,394 14,694 (618) 85.937 15.080 386 1 1 (4.970) 1 1 16.294) (4.256) (65) (6) (102 4 ,148) 4.256) 1691) el (691) (632) (691) (1,195) 1555 563) 3,162 317 1,805 90,021 13,643 (11,597) 80,546 13.643 3,065 6 50 83,611 14.293 Ca noncontrolling interest Other Balances as of January 31, 2016 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared ($2.00 per share) Purchase of Company stock Cash dividend declared to noncontrolling interest Other Balances as of January 31, 2017 - 2,635) (2,635) (210) (2,845) (6.216) (8.276) (6,216) (8.276) (120) (6,216 090) (12) (174) (519) (519) 249) 740 $2,371 3,048 $305 $89,354 $(14,232) $77,798 $2.737 580,535 $ - See accompanying notes Wal-Mart Stores, Inc. Consolidated Statements of Cash Flow Pascal Years Ended unuary 31 2015 (Amounts in millions $14.293 1500 $17099 2299 14.293 15.080 16 314 Cash flows from operating activities: Consolidated net income income from discontinued operations, net of income taxes 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 10 OBO A 0 0.0 HI Wal-Mart Stores, Inc. Consolidated Statements of Cash Flow Fiscal Years Ended January 31, 2017 2016 2015 $ 14,293 $ 15,080 $ 17,099 (285) 16,814 14,293 15,080 9,454 9.173 (Amounts in millions) Cash flows from operating activities: Consolidated net income Income from discontinued operations, net of income taxes 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 10,080 761 206 1672 (503) 785 1,410 (19) (203) (569) (1,229) (402) 1,021 3.942 1.137 2008 2678 1.303 1.249 492 (472) 166 31,530 27 389 28,564 (12.174 (11,477) 635 570 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 Investment and business acquisitions, net of cash acquired Other investing activities Net cash used in investing activities (10,619) 456 662 (1,901) (2.463) (122) (13,987) (79) (10,675) (1921 (11.125) (10,619) 456 (11477) 635 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 Investment and business acquisitions, net of cash acquired Other investing activities Net cash used in investing activities (12,174) 570 671 662 246 (1,901) (2,463) (122) (192) (11,125) (13,987) (10,675) 1.235 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 (1,673) 137 (2,055) (6,216) (8,298) (479) (90) (255) (18,929) (4.432) (6.294) (4,112) (719) (1,326) (513) (16,122) 16.288) 5.174 13.904) (6.185) (1,015) (600) (1,844) 409) (15.071) (514) 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 (452) (1,838) 8,705 $ 6,867 (1,022) (430) 9.135 $8,705 1854 7.281 S 9.135 8.111 8.169 Supplemental disclosure of cash flow information: Income taxes paid Interest paid 4,507 2,351 2.500 See accompanying notes