Business Context and Reporting Period
This Form 8-K was filed by Amazon.com, Inc. on October 1, 2012, reporting a material event that occurred on the same date. The filing details the company's entry into a significant real estate transaction regarding its corporate headquarters in Seattle, Washington.
Key Financial Metrics
The filing does not provide standard financial performance metrics such as revenue, profit, cash flow, margins, or debt levels. The only financial data disclosed relates to the specific transaction:
- Transaction Value: Approximately $1.16 billion.
- Asset Scope: 11 buildings comprising 1.8 million square feet of currently leased office space.
- Initial Deposit: Approximately $23 million (non-refundable).
- Increased Deposit: Approximately $51 million (due October 22, 2012).
Material Changes
The primary material change is the shift from a leasehold interest to an ownership interest in 1.8 million square feet of corporate office space. The company has moved from leasing this space to executing purchase and sale agreements to acquire the buildings outright.
Outlook, Risks, and Contingencies
Closing Timeline: The company expects to close the purchase in the fourth quarter of 2012, subject to customary closing conditions.
Contingency Risk: The filing highlights a specific financial risk regarding the deposit. If the transaction does not close in Q4 2012, the deposit (which will increase to $51 million) will be forfeited.
Investor Verification Checklist
- Verify the final closing date of the transaction to confirm it occurs within Q4 2012.
- Confirm the total final purchase price remains at approximately $1.16 billion.
- Monitor the company's cash position to ensure the $51 million deposit and subsequent funding requirements are met.
- Review future filings for the impact of this acquisition on the company's balance sheet and capital expenditures.
