Solved by verified expert:Please answer the all questions. The homework needs specific calculation and show the correct processes in the assignment.
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amazon_2016.pdf
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Group Number _______________
Name _________________________
A-Number _____________________
Name _________________________
A-Number _____________________
Reference the financial statements of Amazon and Tencent for the year ended at December 31,
2016 to answer the questions.
• All questions and amounts requested relate to the year 2016 (Year ended at December
31, 2016) unless stated.
• All explanations should be supported, and all CALCULATIONS must be shown.
• If you need to convert US dollars to RMB, use the currency ratio of $1 USD = ￥6.5
RMB in all your calculations.
• Due at the beginning of the class on January 30th.
——————————————————————————————————————–Background
1. What accounting standards are Amazon and Tencent following respectively?
2. List the auditor for each company
3. What are the main business lines of the two companies? List two for each company.
Accounts receivable
4. Does each company sell a significant amount of their sales on credit? Support your
answer.
5. How well are they doing at collecting their accounts receivable?
Inventory
6. Which accounting method(s) (e.g., LIFO, FIFO, LCNRV) does each company use to
report the value of inventory?
7. Which company has a higher inventory turnover ratio? The formula of inventory turnover
could be found in Chapter 7.
Cash flow Statement
8. How did the two companies pay for the Investing Activities?
Conclusion
9. Which company do you think is financially healthier overall in 2016? Why? Support
your opinion.
10. Which company do you think will have a higher EPS growth rate in 2017? Why?
Support your opinion.
AMAZON COM INC
FORM
10-K
(Annual Report)
Filed 02/10/17 for the Period Ending 12/31/16
Address
Telephone
CIK
Symbol
SIC Code
Industry
Sector
Fiscal Year
410 TERRY AVENUE NORTH
SEATTLE, WA 98109
2062661000
0001018724
AMZN
5961 – Catalog and Mail-Order Houses
Department Stores
Consumer Cyclicals
12/31
http://www.edgar-online.com
© Copyright 2017, EDGAR Online, Inc. All Rights Reserved.
Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________
FORM 10-K
____________________________________
(Mark One)
x
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2016
or
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
to
.
Commission File No. 000-22513
____________________________________
AMAZON.COM, INC.
(Exact name of registrant as specified in its charter)
Delaware
91-1646860
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
410 Terry Avenue North
Seattle, Washington 98109-5210
(206) 266-1000
(Address and telephone number, including area code, of registrant’s principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Name of Each Exchange on Which Registered
Common Stock, par value $.01 per share
NASDAQ Global Select Market
Securities registered pursuant to Section 12(g) of the Act:
None
____________________________________
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes x
No ¨
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.
Yes ¨
No x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x
No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted
pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x
No ¨
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in
definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated
filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
x
Non-accelerated filer
¨
(Do not check if a smaller reporting company)
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ¨
Aggregate market value of voting stock held by non-affiliates of the registrant as of June 30, 2016
Number of shares of common stock outstanding as of January 25, 2017
Accelerated filer
¨
Smaller reporting company
¨
No x
$
280,129,378,534
477,170,618
____________________________________
DOCUMENTS INCORPORATED BY REFERENCE
The information required by Part III of this Report, to the extent not set forth herein, is incorporated herein by reference from the registrant’s definitive proxy statement relating to the
Annual Meeting of Shareholders to be held in 2017 , which definitive proxy statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal
year to which this Report relates.
AMAZON.COM, INC.
FORM 10-K
For the Fiscal Year Ended December 31, 2016
INDEX
Page
PART I
Item 1.
Business
3
Item 1A.
Risk Factors
Item 1B.
Unresolved Staff Comments
14
Item 2.
Properties
15
Item 3.
Legal Proceedings
15
Item 4.
Mine Safety Disclosures
15
6
PART II
Item 5.
Market for the Registrant’s Common Stock, Related Shareholder Matters, and Issuer Purchases of Equity Securities
16
Item 6.
Selected Consolidated Financial Data
17
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operation
18
Item 7A.
Quantitative and Qualitative Disclosure About Market Risk
32
Item 8.
Financial Statements and Supplementary Data
34
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
71
Item 9A.
Controls and Procedures
71
Item 9B.
Other Information
73
Item 10.
Directors, Executive Officers, and Corporate Governance
73
Item 11.
Executive Compensation
73
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
73
Item 13.
Certain Relationships and Related Transactions, and Director Independence
73
Item 14.
Principal Accountant Fees and Services
73
PART III
PART IV
Item 15.
Exhibits, Financial Statement Schedules
74
Signatures
75
2
Table of Contents
AMAZON.COM, INC.
PART I
Item 1.
Business
This Annual Report on Form 10-K and the documents incorporated herein by reference contain forward-looking statements based on expectations,
estimates, and projections as of the date of this filing. Actual results may differ materially from those expressed in forward-looking statements. See Item 1A of Part
I—“Risk Factors.”
Amazon.com, Inc. was incorporated in 1994 in the state of Washington and reincorporated in 1996 in the state of Delaware. Our principal corporate offices
are located in Seattle, Washington. We completed our initial public offering in May 1997 and our common stock is listed on the NASDAQ Global Select Market
under the symbol “AMZN.”
As used herein, “Amazon.com,” “we,” “our,” and similar terms include Amazon.com, Inc. and its subsidiaries, unless the context indicates otherwise.
General
Amazon.com opened its virtual doors on the World Wide Web in July 1995. We seek to be Earth’s most customer-centric company. We are guided by four
principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. In each of our
segments, we serve our primary customer sets, consisting of consumers, sellers, developers, enterprises, and content creators. In addition, we provide services, such
as advertising services and co-branded credit card agreements.
We have organized our operations into three segments: North America, International, and Amazon Web Services (“AWS”). These segments reflect the way
the Company evaluates its business performance and manages its operations. Additional information on our operating segments and product information is
contained in Item 8 of Part II, “Financial Statements and Supplementary Data—Note 11—Segment Information.” See Item 7 of Part II, “Management’s Discussion
and Analysis of Financial Condition and Results of Operations—Results of Operations—Supplemental Information” for supplemental information about our net
sales. Our company-sponsored research and development expense is set forth within “Technology and content” in Item 8 of Part II, “Financial Statements and
Supplementary Data—Consolidated Statements of Operations.”
Consumers
We serve consumers through our retail websites and focus on selection, price, and convenience. We design our websites to enable hundreds of millions of
unique products to be sold by us and by third parties across dozens of product categories. Customers access our websites directly and through our mobile websites
and apps. We also manufacture and sell electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, and Echo, and we develop and produce media
content. We strive to offer our customers the lowest prices possible through low everyday product pricing and shipping offers, and to improve our operating
efficiencies so that we can continue to lower prices for our customers. We also provide easy-to-use functionality, fast and reliable fulfillment, and timely customer
service. In addition, we offer Amazon Prime, an annual membership program that includes unlimited free shipping on tens of millions of items, access to unlimited
instant streaming of thousands of movies and TV episodes, and other benefits.
We fulfill customer orders in a number of ways, including through: North America and International fulfillment and delivery networks that we operate; cosourced and outsourced arrangements in certain countries; and digital delivery. We operate customer service centers globally, which are supplemented by cosourced arrangements. See Item 2 of Part I, “Properties.”
Sellers
We offer programs that enable sellers to grow their businesses, sell their products on our websites and their own branded websites, and fulfill orders through
us. We are not the seller of record in these transactions. We earn fixed fees, a percentage of sales, per-unit activity fees, interest, or some combination thereof, for
our seller programs.
Developers and Enterprises
We serve developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through our AWS segment, which
offers a broad set of global compute, storage, database, and other service offerings.
3
Table of Contents
Content Creators
We serve authors and independent publishers with Kindle Direct Publishing, an online service that lets independent authors and publishers choose a 70%
royalty option and make their books available in the Kindle Store, along with Amazon’s own publishing arm, Amazon Publishing. We also offer programs that
allow authors, musicians, filmmakers, app developers, and others to publish and sell content.
Competition
Our businesses encompass a large variety of product types, service offerings, and delivery channels. The international marketplace in which we compete is
evolving rapidly and intensely competitive, and we face a broad array of competitors from many different industry sectors around the world. Our current and
potential competitors include: (1) online, offline, and multichannel retailers, publishers, vendors, distributors, manufacturers, and producers of the products we
offer and sell to consumers and businesses; (2) publishers, producers, and distributors of physical, digital, and interactive media of all types and all distribution
channels; (3) web search engines, comparison shopping websites, social networks, web portals, and other online and app-based means of discovering, using, or
acquiring goods and services, either directly or in collaboration with other retailers; (4) companies that provide e-commerce services, including website
development, advertising, fulfillment, customer service, and payment processing; (5) companies that provide fulfillment and logistics services for themselves or for
third parties, whether online or offline; (6) companies that provide information technology services or products, including on-premises or cloud-based
infrastructure and other services; and (7) companies that design, manufacture, market, or sell consumer electronics, telecommunication, and electronic devices. We
believe that the principal competitive factors in our retail businesses include selection, price, and convenience, including fast and reliable fulfillment. Additional
competitive factors for our seller and enterprise services include the quality, speed, and reliability of our services and tools, as well as customers’ ability and
willingness to change business practices. Some of our current and potential competitors have greater resources, longer histories, more customers, greater brand
recognition, and greater control over inputs critical to our various businesses. They may secure better terms from suppliers, adopt more aggressive pricing, pursue
restrictive distribution agreements that restrict our access to supply, direct consumers to their own offerings instead of ours, lock-in potential customers with
restrictive terms, and devote more resources to technology, infrastructure, fulfillment, and marketing. Each of our businesses is also subject to rapid change and the
development of new business models and the entry of new and well-funded competitors. Other companies also may enter into business combinations or alliances
that strengthen their competitive positions.
Intellectual Property
We regard our trademarks, service marks, copyrights, patents, domain names, trade dress, trade secrets, proprietary technologies, and similar intellectual
property as critical to our success, and we rely on trademark, copyright, and patent law, trade-secret protection, and confidentiality and/or license agreements with
our employees, customers, partners, and others to protect our proprietary rights. We have registered, or applied for the registration of, a number of U.S. and
international domain names, trademarks, service marks, and copyrights. Additionally, we have filed U.S. and international patent applications covering certain of
our proprietary technology. We have licensed in the past, and expect that we may license in the future, certain of our proprietary rights to third parties.
Seasonality
Our business is affected by seasonality, which historically has resulted in higher sales volume during our fourth quarter, which ends December 31. We
recognized 33%, 33%, and 32% of our annual revenue during the fourth quarter of 2014 , 2015 , and 2016 .
Employees
We employed approximately 341,400 full-time and part-time employees as of December 31, 2016 . However, employment levels fluctuate due to seasonal
factors affecting our business. Additionally, we utilize independent contractors and temporary personnel to supplement our workforce. We have works councils,
statutory employee representation obligations, and union agreements in certain countries outside the United States. We consider our employee relations to be good.
Competition for qualified personnel in our industry has historically been intense, particularly for software engineers, computer scientists, and other technical staff.
Available Information
Our investor relations website is www.amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly
make available on this website, free of charge, the reports that we file or furnish with the
4
Table of Contents
Securities and Exchange Commission (“SEC”), corporate governance information (including our Code of Business Conduct and Ethics), and select press releases
and social media postings.
Executive Officers and Directors
The following tables set forth certain information regarding our Executive Officers and Directors as of January 25, 2017 :
Executive Officers of the Registrant
Name
Age
Position
Jeffrey P. Bezos
53
President, Chief Executive Officer, and Chairman of the Board
Jeffrey M. Blackburn
47
Senior Vice President, Business Development
Andrew R. Jassy
49
CEO Amazon Web Services
Brian T. Olsavsky
53
Senior Vice President and Chief Financial Officer
Shelley L. Reynolds
52
Vice President, Worldwide Controller, and Principal Accounting Officer
Jeffrey A. Wilke
50
CEO Worldwide Consumer
David A. Zapolsky
53
Senior Vice President, General Counsel, and Secretary
Jeffrey P. Bezos. Mr. Bezos has been Chairman of the Board of Amazon.com since founding it in 1994 and Chief Executive Officer since May 1996.
Mr. Bezos served as President of the Company from founding until June 1999 and again from October 2000 to the present.
Jeffrey M. Blackburn. Mr. Blackburn has served as Senior Vice President, Business Development, since April 2006.
Andrew R. Jassy. Mr. Jassy has served as CEO Amazon Web Services since April 2016, and Senior Vice President, Amazon Web Services, from April
2006 until April 2016.
Brian T. Olsavsky. Mr. Olsavsky has served as Senior Vice President and Chief Financial Officer since June 2015, Vice President, Finance for the Global
Consumer Business from December 2011 to June 2015, and numerous financial leadership roles across Amazon with global responsibility since April 2002.
Shelley L. Reynolds. Ms. Reynolds has served as Vice President, Worldwide Controller, and Principal Accounting Officer since April 2007.
Jeffrey A. Wilke. Mr. Wilke has served as CEO Worldwide Consumer since April 2016, Senior Vice President, Consumer Business, from February 2012
until April 2016, and as Senior Vice President, North America Retail, from January 2007 until February 2012.
David A. Zapolsky. Mr. Zapolsky has served as Senior Vice President, General Counsel, and Secretary since May 2014, Vice President, General Counsel,
and Secretary from September 2012 to May 2014, and as Vice President and Associate General Counsel for Litigation and Regulatory matters from April 2002
until September 2012.
Board of Directors
Name
Age
Jeffrey P. Bezos
53
President, Chief Executive Officer, and Chairman of the Board
Position
Tom A. Alberg
76
Managing Director, Madrona Venture Group
John Seely Brown
76
Visiting Scholar and Advisor to the Provost, University of Southern California
William B. Gordon
66
Partner, Kleiner Perkins Caufield & Byers
Jamie S. Gorelick
66
Partner, Wilmer Cutler Pickering Hale and Dorr LLP
Daniel P. Huttenlocher
58
Dean and Vice Provost, Cornell Tech at Cornell University
Judith A. McGrath
64
President, Astronauts Wanted * No experience necessary
Jonathan J. Rubinstein
60
Co-CEO, Bridgewater Associates, LP
Thomas O. Ryder
72
Retired, Former Chairman, Reader’s Digest Association, Inc.
Patricia Q. Stonesifer
60
President and Chief Executive Officer, Martha’s Table
Wendell P. Weeks
57
Chief Executive Office …
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