? Hint (1 of 4): Return on invested Capital (ROIC) = Net Income + After Tax Interest Expense Total Liabilities & Shareholder's Equity Current Liabilities Hint (2 of 4): Since tax = 0% for this problem, After Tax Interest Expense = Interest Expense Interest Expense can be found under CONSOLIDATED STATEMENTS OF OPERATIONS- page 39. Hint (3 of 4): Use the absolute value of Interest Expense (i.e., treat it as positive, even though the value is negative) when plugging into the equations! Hint (4 of 4): If you're having trouble finding the Total Liabilities & Shareholder's Equity for one of the years, recall that: Total Assets = Total Liabilities + Total Shareholder's Equity And "Total Assets" is listed on page 17 under "Balance Sheets"! A) Amazon 0/1.5 points (graded) Calculate the Return on Invested Capital for Amazon for the following three years (Assuming tax = 0% for simplicity). Use the tables found in Amazon's 10-K and submit your answer as a percentage. To represent a negative number instead of putting the number in parenthesis, precede with "-". Ex. Negative one should be represented as "-1". Round the percentage to 3 significant figures. 2013 Assume Total Current Liabilities = $22,980 M % 2014 % 2015 % Submit You have used 1 of 3 attempts Hint Save Table of Contents Item 6. Selected Consolidated Financial Data The following selected consolidated financial data should be read in conjunction with the consolidated financial statements and the notes thereto in Item 8 of Part II, "Financial Statements and Supplementary Data," and the information contained in Item 7 of Part II, "Management's Discussion and Analysis of Financial Condition and Results of Operations." Historical results are not necessarily indicative of future results. 2015 2014 Year Ended December 31, 2013 (in millions, except per share data) 2012 2011 $ $ $ $ 48,077 74.452 745 $ $ $ $ 862 $ $ $ $ 107,006 2.233 596 1.28 1.25 $ 88,988 178 (241) (0.52) (0.52) 274 $ $ $ $ 61,093 676 (39) (0.09) (0.09) 631 $ Statements of Operations: Net sales Income from operations Net income (loss) Basic earnings per share (1) Diluted earnings per share (1) Weighted average shares used in computation of earnings per share: Basic Diluted Statements of Cash Flows: Net cash provided by (used in) operating activities 0.60 $ S 1.39 1.37 $ $ $ 0.59 $ $ 467 457 453 453 462 462 477 465 453 461 $ 11,920 S 6,842 S 5,475 $ 4.180 $ 3,903 December 31, 2015 2014 2013 2012 2011 (in millions) Balance Sheets: Total assets Total long-term obligations $ $ $ $ $ 65,444 18,161 54,505 15,675 40,159 7,433 32,555 5,361 25.278 2,625 $ $ $ $ (1) For further discussion of earnings per share, see Item 8 of Part II, "Financial Statements and Supplementary DataNote 1Description of Business and Accounting Policies." AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) Year Ended December 31 2015 2014 2013 $ $ $ 79,268 27,738 107,006 70,080 18,908 88,988 60,903 13,549 74.452 71,651 13,410 5,254 12,540 1,747 171 104,773 2,233 54,181 8,585 3,133 6,565 1,129 114 73,707 745 Net product sales Net service sales Total net sales Operating expenses (1): Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense (income), net Total operating expenses Income from operations 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 Net income (loss) Basic earnings per share Diluted earnings per share Weighted-average shares used in computation of earnings per share: Basic Diluted 62,752 10,766 4,332 9,275 1,552 133 88,810 178 39 (210) (118) (289) (111) (167) 37 (241) 50 38 (459) (256) (665) 1,568 (950) (22) 596 (141) (136) (239) 506 (161) (71) 274 $ (0.52) $ 0.60 1.28 1.25 $ (0.52) $ 0.59 467 462 457 477 462 465 $ $ (1) Includes stock-based compensation as follows: Fulfillment Marketing Technology and content General and administrative 482 190 1,224 223 375 125 804 193 294 88 603 149 See accompanying notes to consolidated financial statements. Table of Contents AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) Year Ended December 31, 2015 2014 2013 596 $ (241) $ 274 (210) (325) 63 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 S(1) Net unrealized gains (losses) on available-for-sale securities Total other comprehensive income (loss) Comprehensive income (loss) (7) 2 (10) 5 1 (2) (3) (1) (326) (567) (9) 54 (212) 384 $ $ 328 See accompanying notes to consolidated financial statements, 40 AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2015 2014 ASSETS $ 14,557 2,859 8,299 5,612 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 15,890 3,918 10,243 6,423 36,474 21,838 3,759 3,373 65,444 31,327 16,967 3,319 2,892 54,505 $ LIABILITIES AND STOCKHOLDERS' EQUITY $ $ 20,397 10,384 3,118 33,899 8,235 9,926 16,459 9,807 1,823 28,089 8,265 7,410 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 shares 500 Issued and outstanding shares - none Common stock, $0.01 par value: 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 5 (1,837) 11,135 5 (1,837) 13,394 (723) 2,545 13,384 65,444 (511) 1,949 10,741 54,505 $ $ See accompanying notes to consolidated financial statements. 41 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in millions) Common Stock Additional Paid-In Capital Treasury Stock Shares Amount Total Stockholders Equity Retained Earnings Accumulated Other Comprehensive Income (Loss) $ (239) 454 $ 5 $ (1,837) $ 8,347 $ $ 1,916 274 8,192 274 54 54 5 4 4 73 73 1,149 9,573 459 5 (1,837) (185) 2,190 (241) 1,149 9,746 (241) (326) 2 (326) 6 2 Balance as of January 1, 2013 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, 2013 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 6 6 1,510 44 11,135 465 5 (1,837) (511) 1,949 596 1,510 44 10,741 596 (212) 4 (212) 6 4 119 2.131 119 2,131 5 13,394 5 471 $ 5 $ (1,837) $ $ (723) $ 2,545 $ 13,384 See accompanying notes to consolidated financial statements. 42