Bill,
Amazon filed their 8K today. This was a bit interesting and is a significant number. It also is not in the proforma this time. Think about this please;-)
"Noncash investment gains and losses for the quarter ended December 31,
2000, includes other-than-temporary impairment losses totaling approximately
$155 million to record certain of the company's investments at their fair
values. Noncash investment gains and losses, net for the year ended December 31,
2000, includes the following items: a gain of approximately $40 million related
to the acquisition of HomeGrocer.com, Inc., previously one of the company's
equity-method investees, by Webvan Group, Inc.; a gain of approximately $20
million representing the previously unearned revenue recognized upon the
termination of the company's commercial agreement with living.com, which filed
for bankruptcy during the quarter ended September 30, 2000; a loss of
approximately $14 million, representing the company's investment in living.com
at the time of its bankruptcy; and other-than-temporary impairment losses
totaling approximately $34 million and $155 million in the quarters ending
September 30 and December 31, 2000, to record certain of the company's
investments at their fair values. Noncash investment gains and losses are
excluded from pro forma operating results."
Real GAAP losses for fiscal 2000 were $1,411,273,000. Real GAAP lloses for 1999 (when they were building out the distribution centers) were $719,968,000. Losses increased 96% on their way to profitability. This would men losses in 2001 will be around $2,766,000,000. My question is at what point in time do these losses become a profit? |
