PLUS Custom Course for the University of Akram You can The n a mes of Amazon.com, Inc. are presented in Appendix D Gick here A GD Fran s waartstores are press e to Gick here The conten t s, including the notes to the facilements, we betech company's respective weste Based on the information contained in these financial statements (For Amazon se values for December 31, 2016 and for Walt use for January 31, 2017 and (1) on Return on Walart stores Pront margi Asset turver Amazon.com AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 2014 2015 8,658 S 14.5575 15,890 (241) 596 2,371 4.746 1,497 129 59 (316) 6,281 2.119 155 250 8,116 2,975 160 (20) (6) (119) (246) (829) 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, 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 uncanned 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 ones and cash equivalents Net increase (decrease in cash and cash equivalent CASH AND CASH EQUIVALENTS, END OF PERIOD SUPPLEMENTAL CASH FLOW INFORMATION: Cachafeindan lemah (1.193) (1,039) 1.759 706 4,433 (3.692) (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) 6,842 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) 119 829 353 6,359 (513) (1.285) (135) (1,652) (2.462) (121) (3,763) (74) 1,333 15,890 S (354) (3.860) (147) (2.911) (212 144 1913 (310) SR99 375 3.ayy 14,557 5 15,890 5 19.334 290 INCLcrease t hese in case and can 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 325 $ 153 91 $ 86 177 4,008 920 273 206 412 5,704 1,209 4,717 544 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) 2015 2016 Year Ended December 31. 2014 70,080 S 79.268 S 18,908 27.738 107.006 94.665 41,322 135,987 88,988 62,752 10,766 4,332 9.275 71,651 13.410 5.254 12.540 88,265 17,619 7,233 16,085 2,432 167 1.552 1.747 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 Net income (loss) Basic earnings per share Diluted earnings per share Weighted average shares used in computation of earnings per share 104.773 131.801 2.233 88,810 178 39 (210) 118) (289) (U1) (484 50 (459) (256) (665) 1.568 (950) (167) 37 (294) 3.892 (1425) (96) 2.371 5.01 4.90 (340) S (0.52) 5 96 $ 1 98 $ 1.25 $ (0.52 $ (0.52) 5 1.255 4.90 Diluted earnings per share Weighted average shares used in computation of earnings per share: Basic Diluted 462 462 467 477 474 484 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. DATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) Year Ended December 31, 2014 2015 (241) S 596 5 2016 2,371 (325) (210) 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 S1, S(5), and S(12) Reclassification adjustment for losses (gains) included in "Other income (expense), net." net of tax of S(1), SO, and SO Net unrealized gains (losses) on available for sale securities Total other comprehensive income (oss) Comprehensive income (loss) (1) (1) (326) (567) (2) (212) 384 $ 17 (262) 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 ASSETS Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other $ 19.334 15,890 3,918 10,243 6647 5.654 11.461 8,339 5,654 35,705 21,838 3,759 3.445 64,747 $ 8,339 45,781 29,114 3,784 4.723 83,402 20,397 $ 10,372 3.118 33.887 25,309 13,739 4,768 43.816 7,694 12,607 8.227 9,249 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. 30.01 par value: Authorized shares --500 Issued and outstanding shares --none Common stock, 30.01 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 earnings Total stockholders' equity Total liabilities and stockholders' equity S See accompanying notes to consolidated financial statements (1.837) 13,394 (723) 2,545 13,384 64,747 $ (1.837) 17,186 (985) 4,916 19,285 83,402 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY in millions) Als recorded AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in millions) Common Stock Accumulated Other Comprehensive Income (Low) Additional Paid to Capital Total Stockholders Treasury Retained Farnings Equity Amount Stock 55 (1,837) $ 9.573 S (185) 5 2,190 S (241) 9,746 (241) (326) (326) 1,510 (1.837) 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 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 cmployee benefit plan stock Balance as of December 31, 2016 44 10,741 596 (212) LLL LLLLLLL III III III II all 119 2,131 13,384 2,371 (262) 829 2062 4775 s 17,186 (985) S 4,916 $ 19,285 See accompanying notes to consolidated financial statements. Wal-Mart Stores, Inc. Consolidated Statement of Income Fiscal Years Ended lanuary 31, 2017 2016 2015 Amount in montant persondata S481,317 4,556 485,873 $478,614 3.516 482,229 3,422 485,651 482130 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 361,256 101,853 22,764 360,984 97041 365.086 93418 27,147 24105 2027 521 2,044 323 (100) 2,267 20,497 6,204 14.293 2467 21.638 6,558 15,080 2161 300 (113) 2348 24.799 7,985 16,814 205 17099 (736) 1 6 363 14,293 (650) $ 13,643 15080 386) 5 14604 Interest, net Income from continuing operations before income taxes 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 Basic net income per common share: Basic income per common share from continuing operations attributable to waimart 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 por common share attributable to Walmart $ 4.40 54585 501 0106 $ 4.40 5 458 5 5.07 $ 4.38 $ 457 $ 4.99 0.06 5.05 $ 4.38 $ 457 5 Weighted average common shares outstanding Diluted Dividends declared per common share Se companying notes 3,101 3.112 2.00 3,207 217 1965 3,230 3243 192 $ $ Wal-Mart Stores, Inc. Consolidated Statement of Comprehensive Income Amounts in millions) Consolidated net income Less consolidated net income attributable to nonredeemable noncontrolling interest Consolidated net income attributable to Walmart Fiscal Years Ended January 31, 2017 2016 2015 $14,293 $15,080 $17,099 (650) (386) (736) 13,643 14,694 16,363 (5,220) 366 (202) 86 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 (oss) attributable to nonredeemable noncontrolling interest Other comprehensive income (loss) attributable to Walmart Comprehensive income, net of income taxes Less comprehensive income (oss) attributable to nonredeemable noncontrolling interest Comprehensive income attributable to Walmart See accompanying notes (2,882) 413 21 (397) (2,845) 210 (2,635) 11,448 (440) $11,008 (4,970) 541 (4,558) 379 (470) (69) (4,718) 546 (4,172) 12,381 (190) $12,191 (4,429) 10.110 155 $10.265 Wal-Mart Stores, Inc. Consolidated Balance Sheets As of January 31, 2017 2016 Amounts in Ballions ASSETS Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets Property and equipment: Property and equipment Les accumulated depreciation Property and equipment, net Property under capital ease and financing obligations: Property under capital lease and financing obligations Less accumulated amortization Dinnerte interranital tease and financimahinatne not $ 6,867 5,835 43,046 1,941 57,689 $ 8,705 5,624 44469 1441 60.239 179,492 (71.782) 107,710 176958 (66.787) 110,171 11,637 (5,169) 11,096 (4.751) KAR (5,169) Less accumulated amortization Property under capital lease and financing obligations, net Goodwil Other assets and deferred charges Total assets 6,468 17,037 9,921 $198.825 (4.751) 6345 16,695 6131 $199,581 $ 2,708 38,487 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 19,607 $ 1,099 41,433 20,654 921 2,256 565 66,928 521 2,745 551 64,619 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 7,321 Commitments and contingencies Equity Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Nonredeemable noncontrolling interest Total equity Total liabilities and equity See accompanying notes 305 2,371 89,354 (14,232) 77,798 2,737 80,535 $198,825 317 1,805 90,021 (11.597) 80,546 3065 83,611 $199,581 Wal-Mart Stores, Inc. Consolidated Statements of Shareholders' Equity and Redeemaole Noncontrolling Interest Acumulated Other Comprehensive os 502,996) to Walmart Shareholders Equity 576255 16,363 Total Equity f eained Earnings 576,566 16,363 Redeemable Non controlling interest Nonredeemable Norcontrolling interest $5,084 736 17,099 (4.172) 14,172) (546) (4718) (6,185) 1950 (6,185) 1980 (6,185) 1980) 29) (1.491) (17) 113 (7.168) (731) 4543 386 2.462 (618) 85,937 15.080 81,394 14,694 85,777 14694 Capital in Common Stock c of Amountsin mind Shares Amount Par Value Balances as of February 1, 2014 3,233 5323 $2,362 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 3228 Consolidated net income Other comprehensive loss net of income taxes Cash dividends declared (51.96 per share) Purchase of Company stock (102) Cash dividend declared to noncontrolling interest Other 1555) Balances as of January 31, 2016 3,162 317 1,805 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared 152.00 per share) Purchase of Company stock (12) (174) Cash dividend declared to noncontrolling interest Other Balances as of January 31, 2017 3,048 5305 52,371 (4429) (4,429) (541) (4.970) 16.294) 4148 (6,294) (4.256 16.294) (4,256 (691) 1632) 3,065 650 1691) (1.195) 83,611 14,293 (563) 80,546 13,643 90,021 13.643 (11,597) (2,635) (2.635) (210) (2,845) 16.216) (8,090) (6,216) (8,276) 16,216) (8.276) (519) 1249) $2,737 1519) 487 $89,354 $114.232) $77.798 $80,535 S 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 10,080 (Amountsin 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 761 9,454 (672) 1.410 9,173 (503) 785 206 (402) 1,021 3,942 1,137 492 31,530 (19) (703) 2,008 1,303 (472) 27,389 (569) (1,229) 2,678 1,249 166 28,564 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 (11,477) 635 246 (12,174) 570 671 (10,619) 456 662 (1,901) (2,463) (122) (13,987) (79) (10,675) (192) (11,125) 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 pald 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) 190) (255) (18,929) (4432) (6,294) (4,112) (719) (1,326) (513) (16122) (6,288) 5.174 (3,904) (6,185) (1,015) 1000) (1844) (409) (15,071) 10,080 761 206 9,454 (672) 1,410 9,173 (503) 785 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 (402) 1,021 3,942 1,137 492 31,530 (19) (703) 2,008 1,303 (472) 27,389 (569) (1,229) 2,678 1,249 166 28,564 (12,174) (11,477) 635 570 246 671 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) (192) (11,125) 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) 1.235 39 (4432) (6,294) (4,112) (719) (1,326) (513) (16,122) (6,288) 5,174 (3,904) (6,185) (1,015) (600) (1,844) (409) (15,071) (255) (18,929) 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 (514) 1,854 7,281 9,135 5 Supplemental disclosure of cash flow information: Income taxes paid Interest paid 4,507 2,351 8,111 2,540 8,169 2,433 See accompanying notes