Recap of Amazon's Annual Report to the SEC

As I read Amazon end of the year filings to the SEC, a few items jumped out at me. Since 2009, Amazon's assets, free cash flow and net sales have increased every year. In a time of economic hardship for many, Amazon is strong and successful. Net sales were the greatest in the fourth quarter of 2013. The third quarter was the second most successful, followed by the first and second. This seems to be a company selling trend, as it was also true in 2012. In the liquidity and capital resource section, it reads "We believe that cash flows generated from operations and our cash, cash equivalents, and marketable securities balances will be sufficient to meet our anticipated operating cash needs for at least the next 12 months. However, any projections of future cash needs and cash flows are subject to substantial uncertainty." This means Amazon feels comfortable with where its at now and for its short term future. Prediction beyond a year is unreliable.

The report contains a very detailed audit from the Ernst & Young firm. They write, "In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Amazon.com, Inc. at December 31, 2013 and 2012, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2013, in conformity with U.S. generally accepted accounting principles." This is verifying that they believe Amazon has handled its finances and accounting practice in accordance with U.S. standards. The document also briefly explains all major legal proceedings involving Amazon. Three complaints were from December 2013, all referencing patent infringements in the states of Missouri, Delaware and Texas. Amazon ends each statement with "We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter."

Highlights of the year claim the growth of the Kindle and Kindle Fire accounting for much of Amazon's recent success, as well as expanded shipping options. Packages can now be delivered to the door on Sundays. Amazon Studios released a new original series. Amazon launched AmazonSmile, a new program that allows customers to support their favorite charitable organizations every time they shop.