Summary
Amazon.com, Inc. (AMZN) filed an 8-K on April 28, 2016, to report its first quarter 2016 financial results. The primary focus of this filing is the announcement of these results and a significant change in how the company reports its segment-level financial data. Investors should note that while consolidated financial results remain unaffected, Amazon has started allocating stock-based compensation and other operating expenses to its North America, International, and AWS segments. This new reporting, titled "Stock-based compensation and other" at the segment level, provides a more granular view of segment performance and operational management. The filing includes the full press release with Q1 2016 financial results as Exhibit 99.1, information on the use of non-GAAP financial measures as Exhibit 99.2, and restated historical segment financial information for 2015 and 2014 in Exhibit 99.3. Investors interested in the detailed segment performance will need to review these exhibits and the accompanying information on www.amazon.com/ir to understand the impact of this new allocation on operational metrics.
Key Highlights
- 1Amazon announced its Q1 2016 financial results on April 28, 2016.
- 2The company has changed its segment reporting to include stock-based compensation and other operating expenses.
- 3This new reporting is labeled as "Stock-based compensation and other" within segment results.
- 4Consolidated net sales, operating income/loss, and net income/loss are not impacted by this change.
- 5Historical segment data for 2015 and 2014 has been restated and is available in Exhibit 99.3.
- 6The filing references Exhibit 99.1 for the Q1 2016 press release and Exhibit 99.2 for non-GAAP financial measure disclosures.