Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 20, 2016 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | AMZN | |
Entity Registrant Name | AMAZON COM INC | |
Entity Central Index Key | 1,018,724 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 474,073,542 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | $ 12,470 | $ 10,237 | $ 15,890 | $ 14,557 | $ 10,269 | $ 5,057 |
OPERATING ACTIVITIES: | ||||||
Net income (loss) | 857 | 92 | 1,370 | 35 | 1,931 | (188) |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||||
Depreciation of property and equipment, including internal-use software and website development, and other amortization, including capitalized content costs | 1,909 | 1,504 | 3,736 | 2,930 | 7,087 | 5,557 |
Stock-based compensation | 768 | 563 | 1,312 | 969 | 2,461 | 1,755 |
Other operating expense (income), net | 53 | 42 | 97 | 87 | 166 | 153 |
Losses (gains) on sales of marketable securities, net | 1 | 1 | 3 | 2 | 6 | (1) |
Other expense (income), net | 31 | 18 | (21) | 109 | 115 | 229 |
Deferred income taxes | 106 | (43) | 117 | (45) | 243 | (130) |
Excess tax benefits from stock-based compensation | (113) | (95) | (320) | (117) | (323) | (1) |
Changes in operating assets and liabilities: | ||||||
Inventories | (57) | (27) | 712 | 693 | (2,167) | (1,291) |
Accounts receivable, net and other | (1,184) | (430) | (772) | 11 | (2,538) | (1,456) |
Accounts payable | 977 | 373 | (4,793) | (3,876) | 3,377 | 2,901 |
Accrued expenses and other | (15) | (129) | (972) | (1,068) | 1,007 | 387 |
Additions to unearned revenue | 2,340 | 1,397 | 5,154 | 3,200 | 9,355 | 5,647 |
Amortization of previously unearned revenue | (2,208) | (1,269) | (4,318) | (2,432) | (7,994) | (4,582) |
Net cash provided by (used in) operating activities | 3,465 | 1,997 | 1,305 | 498 | 12,726 | 8,980 |
INVESTING ACTIVITIES: | ||||||
Purchases of property and equipment, including internal-use software and website development, net | (1,711) | (1,213) | (2,890) | (2,084) | (5,395) | (4,607) |
Acquisitions, net of cash acquired, and other | (14) | (8) | (30) | (374) | (452) | (1,287) |
Sales and maturities of marketable securities | 931 | 470 | 2,069 | 845 | 4,249 | 2,639 |
Purchases of marketable securities | (1,645) | (625) | (2,281) | (1,610) | (4,762) | (3,379) |
Net cash provided by (used in) investing activities | (2,439) | (1,376) | (3,132) | (3,223) | (6,360) | (6,634) |
FINANCING ACTIVITIES: | ||||||
Excess tax benefits from stock-based compensation | 113 | 95 | 320 | 117 | 323 | 1 |
Proceeds from long-term debt and other | 66 | 44 | 75 | 226 | 202 | 6,236 |
Repayments of long-term debt and other | (70) | (215) | (245) | (531) | (1,366) | (797) |
Principal repayments of capital lease obligations | (1,116) | (580) | (1,917) | (1,082) | (3,298) | (1,832) |
Principal repayments of finance lease obligations | (32) | (35) | (61) | (74) | (108) | (155) |
Net cash provided by (used in) financing activities | (1,039) | (691) | (1,828) | (1,344) | (4,247) | 3,453 |
Foreign currency effect on cash and cash equivalents | 64 | 102 | 286 | (219) | 133 | (587) |
Net increase (decrease) in cash and cash equivalents | 51 | 32 | (3,369) | (4,288) | 2,252 | 5,212 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 12,521 | 10,269 | 12,521 | 10,269 | 12,521 | 10,269 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||
Cash paid for interest on long-term debt | 143 | 152 | 145 | 169 | 301 | 212 |
Cash paid for interest on capital and finance lease obligations | 48 | 35 | 95 | 67 | 180 | 119 |
Cash paid for income taxes (net of refunds) | 88 | 65 | 226 | 119 | 380 | 188 |
Assets Held under Capital Leases | ||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||
Property and equipment acquired | 1,422 | 1,384 | 2,297 | 2,338 | 4,676 | 4,710 |
Assets Held under Build-To-Suit Leases | ||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||
Property and equipment acquired | $ 231 | $ 153 | $ 582 | $ 256 | $ 870 | $ 813 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net product sales | $ 21,116 | $ 17,104 | $ 41,697 | $ 34,187 |
Net service sales | 9,288 | 6,081 | 17,835 | 11,714 |
Total net sales | 30,404 | 23,185 | 59,532 | 45,901 |
Operating expenses | ||||
Cost of sales | 19,180 | 15,160 | 38,047 | 30,555 |
Fulfillment | 3,878 | 2,876 | 7,565 | 5,634 |
Marketing | 1,546 | 1,150 | 2,982 | 2,233 |
Technology and content | 3,880 | 3,020 | 7,405 | 5,774 |
General and administrative | 580 | 467 | 1,077 | 894 |
Other operating expense (income), net | 55 | 48 | 100 | 92 |
Total operating expenses | 29,119 | 22,721 | 57,176 | 45,182 |
Operating income | 1,285 | 464 | 2,356 | 719 |
Interest income | 24 | 12 | 45 | 23 |
Interest expense | (116) | (114) | (233) | (228) |
Other income (expense), net | (14) | 0 | 66 | (131) |
Total non-operating income (expense) | (106) | (102) | (122) | (336) |
Income before income taxes | 1,179 | 362 | 2,234 | 383 |
Provision for income taxes | (307) | (266) | (782) | (337) |
Equity-method investment activity, net of tax | (15) | (4) | (82) | (11) |
Net income | $ 857 | $ 92 | $ 1,370 | $ 35 |
Basic earnings per share (in usd per share) | $ 1.81 | $ 0.20 | $ 2.90 | $ 0.07 |
Diluted earnings per share (in usd per share) | $ 1.78 | $ 0.19 | $ 2.84 | $ 0.07 |
Weighted average shares used in computation of earnings per share: | ||||
Basic (in shares) | 473 | 467 | 472 | 466 |
Diluted (in shares) | 483 | 476 | 482 | 475 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income | $ 857 | $ 92 | $ 1,370 | $ 35 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of tax of $36, $1, $13, and $0 | 11 | 128 | 113 | (114) |
Net change in unrealized gains (losses) on available-for-sale securities: | ||||
Unrealized gains (losses), net of tax of $(17), $(8), $(17), and $(8) | 31 | 6 | 37 | 7 |
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $0, $(1), and $(1) | 1 | 1 | 2 | 1 |
Net unrealized gains (losses) on available-for-sale securities | 32 | 7 | 39 | 8 |
Total other comprehensive income (loss) | 43 | 135 | 152 | (106) |
Comprehensive income (loss) | $ 900 | $ 227 | $ 1,522 | $ (71) |
Consolidated Statements Of Com5
Consolidated Statements Of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $ 36 | $ 1 | $ 13 | $ 0 |
Unrealized gains (losses), tax | (17) | (8) | (17) | (8) |
Reclassification adjustment for losses (gains) included in other income (expense), net, tax | $ 0 | $ 0 | $ (1) | $ (1) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 12,521 | $ 15,890 |
Marketable securities | 4,019 | 3,918 |
Inventories | 9,588 | 10,243 |
Accounts receivable, net and other | 6,092 | 5,654 |
Total current assets | 32,220 | 35,705 |
Property and equipment, net | 25,190 | 21,838 |
Goodwill | 3,774 | 3,759 |
Other assets | 3,892 | 3,445 |
Total assets | 65,076 | 64,747 |
Current liabilities: | ||
Accounts payable | 16,123 | 20,397 |
Accrued expenses and other | 9,613 | 10,372 |
Unearned revenue | 3,851 | 3,118 |
Total current liabilities | 29,587 | 33,887 |
Long-term debt | 8,212 | 8,227 |
Other long-term liabilities | 10,739 | 9,249 |
Commitments and contingencies (Note 3) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value: Authorized shares - 500 Issued and outstanding shares - none | 0 | 0 |
Common stock, $0.01 par value: Authorized shares - 5,000 Issued shares - 497 and 494 Outstanding shares - 474 and 471 | 5 | 5 |
Treasury stock, at cost | (1,837) | (1,837) |
Additional paid-in capital | 15,026 | 13,394 |
Accumulated other comprehensive loss | (571) | (723) |
Retained earnings | 3,915 | 2,545 |
Total stockholders’ equity | 16,538 | 13,384 |
Total liabilities and stockholders’ equity | $ 65,076 | $ 64,747 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, Authorized shares | 500,000,000 | 500,000,000 |
Preferred stock, Issued shares | 0 | 0 |
Preferred stock, Outstanding shares | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, Authorized shares | 5,000,000,000 | 5,000,000,000 |
Common stock, Issued shares | 497,000,000 | 494,000,000 |
Common stock, Outstanding shares | 474,000,000 | 471,000,000 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Unaudited Interim Financial Information We have prepared the accompanying consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our consolidated balance sheets, operating results, and cash flows for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2016 due to seasonal and other factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted in accordance with the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes in Item 8 of Part II, “Financial Statements and Supplementary Data,” of our 2015 Annual Report on Form 10-K. Prior Period Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation, including the allocation of stock-based compensation and “Other operating expense (income), net” to segment results within “Note 7 — Segment Information.” These revised segment results reflect the way the Company evaluates its business performance and manages its operations. In Q1 2016, current deferred tax assets and current deferred tax liabilities were reclassified as non-current. See “Recent Accounting Pronouncements” below. We also reclassified our capitalized debt issuance costs from “Other assets” to “Long-term debt” as a result of the adoption of new accounting guidance. The adoption of this guidance did not have a material impact on our consolidated financial statements. Principles of Consolidation The consolidated financial statements include the accounts of Amazon.com, Inc., its wholly-owned subsidiaries, and those entities in which we have a variable interest and of which we are the primary beneficiary, including certain entities in India and China (collectively, the “Company”). Intercompany balances and transactions between consolidated entities are eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, determining the selling price of products and services in multiple element revenue arrangements and determining the amortization period of these elements, incentive discount offers, sales returns, vendor funding, stock-based compensation forfeiture rates, income taxes, valuation and impairment of investments, inventory valuation and inventory purchase commitments, collectability of receivables, valuation of acquired intangibles and goodwill, depreciable lives of property and equipment, internal-use software and website development costs, acquisition purchase price allocations, investments in equity interests, and contingencies. Actual results could differ materially from those estimates. Earnings per Share Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when we have a net loss, stock awards are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect. The following table shows the calculation of diluted shares (in millions): Three Months Ended Six Months Ended 2016 2015 2016 2015 Shares used in computation of basic earnings per share 473 467 472 466 Total dilutive effect of outstanding stock awards 10 9 10 9 Shares used in computation of diluted earnings per share 483 476 482 475 Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB deferred the effective date of the revenue recognition guidance to reporting periods beginning after December 15, 2017. Early adoption is permitted for reporting periods beginning after December 15, 2016. We are continuing to evaluate our method of adoption and the impact this ASU, and related amendments and interpretations, will have on our consolidated financial statements. In November 2015, the FASB issued an ASU amending the accounting for income taxes and requiring all deferred tax assets and liabilities to be classified as non-current on the consolidated balance sheets. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The ASU may be adopted either prospectively or retrospectively. We adopted this ASU in Q1 2016 and retrospectively adjusted prior periods. Upon adoption, current deferred tax assets of $769 million and current deferred tax liabilities of $13 million in our December 31, 2015 consolidated balance sheet were reclassified as non-current. In February 2016, the FASB issued an ASU amending the accounting for leases. The new guidance requires the recognition of lease assets and liabilities for operating leases with terms of more than 12 months, in addition to those currently recorded, on our consolidated balance sheets. Presentation of leases within the consolidated statements of operations and consolidated statements of cash flows will be generally consistent with the current lease accounting guidance. The ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of the ASU; however, we expect the ASU will have a material impact on our consolidated financial statements, primarily to the consolidated balance sheets and related disclosures. In March 2016, the FASB issued an ASU amending the accounting for stock-based compensation and requiring excess tax benefits and deficiencies to be recognized as a component of income tax expense rather than equity. This guidance also requires excess tax benefits to be presented as an operating activity on the statement of cash flows and allows an entity to make an accounting policy election to either estimate expected forfeitures or to account for them as they occur. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact of the ASU; however, we expect the ASU will have a material impact on our consolidated financial statements. |
Cash, Cash Equivalents, and Mar
Cash, Cash Equivalents, and Marketable Securities | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities | As of June 30, 2016 , and December 31, 2015 , our cash, cash equivalents, and marketable securities primarily consisted of cash, U.S. and foreign government and agency securities, AAA-rated money market funds, and other investment grade securities. Cash equivalents and marketable securities are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1 —Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 —Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 —Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. We measure the fair value of money market funds and equity securities based on quoted prices in active markets for identical assets or liabilities. All other financial instruments were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. We did not hold any cash, cash equivalents, or marketable securities categorized as Level 3 assets as of June 30, 2016 , or December 31, 2015 . The following tables summarize, by major security type, our cash, cash equivalents, and marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in millions): June 30, 2016 December 31, 2015 Cost or Gross Gross Total Total Cash $ 6,126 $ — $ — $ 6,126 $ 6,201 Level 1 securities: Money market funds 6,802 — — 6,802 8,025 Equity securities 23 57 — 80 15 Level 2 securities: Foreign government and agency securities 50 — — 50 49 U.S. government and agency securities 3,180 4 (3 ) 3,181 5,167 Corporate debt securities 538 2 — 540 477 Asset-backed securities 147 — (1 ) 146 117 Other fixed income securities 70 1 — 71 42 $ 16,936 $ 64 $ (4 ) $ 16,996 $ 20,093 Less: Restricted cash, cash equivalents, and marketable securities (1) (456 ) (285 ) Total cash, cash equivalents, and marketable securities $ 16,540 $ 19,808 ___________________ (1) We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable securities as collateral for standby and trade letters of credit, guarantees, debt, real estate leases, and amounts due to third-party sellers in certain jurisdictions. We classify cash, cash equivalents, and marketable securities with use restrictions of less than twelve months as “Accounts receivable, net and other” and of twelve months or longer as non-current “Other assets” on our consolidated balance sheets. See “Note 3 — Commitments and Contingencies.” The following table summarizes the contractual maturities of our cash equivalents and marketable fixed-income securities as of June 30, 2016 (in millions): Amortized Cost Estimated Fair Value Due within one year $ 9,138 $ 9,140 Due after one year through five years 1,272 1,275 Due after five years through ten years 155 154 Due after ten years 222 221 Total $ 10,787 $ 10,790 Actual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions. We also hold equity warrant assets giving us the right to acquire stock of other companies. As of June 30, 2016 , and December 31, 2015 , these warrants had a fair value of $133 million and $16 million , and are recorded within “Other assets” on our consolidated balance sheets. The related gain (loss) recorded in “Other income (expense), net” was $(26) million and $0 in Q2 2016 and Q2 2015 , and $(20) million and $2 million in the six months ended June 30, 2016 and 2015 . These assets are primarily classified as Level 2 assets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments We have entered into non-cancellable operating, capital, and finance leases for equipment and office, fulfillment, sortation, delivery, data center, and renewable energy facilities. Rental expense under operating lease agreements was $336 million and $267 million for Q2 2016 and Q2 2015 , and $657 million and $533 million for the six months ended June 30, 2016 and 2015 . The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations, as of June 30, 2016 (in millions): Six Months Ended December 31, Year Ended December 31, 2016 2017 2018 2019 2020 Thereafter Total Debt principal and interest $ 166 $ 1,324 $ 312 $ 1,272 $ 246 $ 9,157 $ 12,477 Capital lease obligations, including interest (1) 1,607 3,251 1,995 691 268 184 7,996 Finance lease obligations, including interest (2) 88 177 181 185 188 1,582 2,401 Operating leases 670 1,140 1,034 909 848 3,553 8,154 Unconditional purchase obligations (3) 341 699 506 263 123 35 1,967 Other commitments (4) (5) 736 573 430 339 283 2,062 4,423 Total commitments $ 3,608 $ 7,164 $ 4,458 $ 3,659 $ 1,956 $ 16,573 $ 37,418 ___________________ (1) Excluding interest, current capital lease obligations of $3.4 billion and $3.0 billion are recorded within “Accrued expenses and other” as of June 30, 2016 , and December 31, 2015 , and $4.3 billion and $4.2 billion are recorded within “Other long-term liabilities” as of June 30, 2016 , and December 31, 2015 . (2) Excluding interest, current finance lease obligations of $107 million and $99 million are recorded within “Accrued expenses and other” as of June 30, 2016 , and December 31, 2015 , and $1.8 billion and $1.7 billion are recorded within “Other long-term liabilities” as of June 30, 2016 , and December 31, 2015 . (3) Includes unconditional purchase obligations related to long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets. For those agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified. (4) Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements and equipment lease arrangements that have not been placed in service and digital media content liabilities associated with long-term digital media content assets with initial terms greater than one year. (5) Excludes $1.6 billion of tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any. Pledged Assets As of June 30, 2016 , and December 31, 2015 , we have pledged or otherwise restricted $581 million and $418 million of our cash, cash equivalents, and marketable securities, and certain property and equipment as collateral for standby and trade letters of credit, guarantees, debt relating to certain international operations, real estate leases, and amounts due to third-party sellers in certain jurisdictions. Other Contingencies As previously disclosed, we recently determined that we processed and delivered orders of consumer products for certain individuals and entities located outside Iran covered by the Iran Threat Reduction and Syria Human Rights Act or other United States sanctions and export control laws. The consumer products included books, music, other media, apparel, home and kitchen, health and beauty, jewelry, office, consumer electronics, software, lawn and patio, grocery, and automotive products. Our review is ongoing and we have voluntarily reported these orders to the United States Treasury Department’s Office of Foreign Assets Control and the United States Department of Commerce’s Bureau of Industry and Security. We intend to cooperate fully with OFAC and BIS with respect to their review, which may result in the imposition of penalties. For additional information, see Item 5 of Part II, “Other Information - Disclosure Pursuant to Section 13(r) of the Exchange Act.” Legal Proceedings The Company is involved from time to time in claims, proceedings, and litigation, including the matters described in Item 8 of Part II, “Financial Statements and Supplementary Data — Note 7 — Commitments and Contingencies — Legal Proceedings” of our 2015 Annual Report on Form 10-K and in Item 1 of Part 1, “Financial Statements — Note 3 — Commitments and Contingencies — Legal Proceedings” of our Quarterly Report on Form 10-Q for the Period Ended March 31, 2016, as supplemented by the following: In December 2013, Appistry, Inc. filed a complaint against Amazon.com, Inc. and Amazon Web Services, Inc. for patent infringement in the United States District Court for the Eastern District of Missouri. The complaint alleges, among other things, that Amazon’s Elastic Compute Cloud infringes U.S. Patent Nos. 8,200,746, entitled “System And Method For Territory-Based Processing Of Information,” and 8,341,209, entitled “System And Method For Processing Information Via Networked Computers Including Request Handlers, Process Handlers, And Task Handlers.” The complaint seeks injunctive relief, an unspecified amount of damages, treble damages, costs, and interest. In March 2015, the case was transferred to the United States District Court for the Western District of Washington. In July 2015, the court granted our motion for judgment on the pleadings and invalidated the patents-in-suit. In August 2015, the court entered judgment in our favor. In September 2015, the plaintiff appealed that judgment to the United States Court of Appeals for the Federal Circuit, and filed a new complaint against Amazon.com, Inc. and Amazon Web Services, Inc. in the United States District Court for the Western District of Washington. The 2015 complaint alleges, among other things, that Amazon’s Elastic Compute Cloud, Simple Workflow, and Herd infringe U.S. Patent Nos. 8,682,959, entitled “System And Method For Fault Tolerant Processing Of Information Via Networked Computers Including Request Handlers, Process Handlers, And Task Handlers,” and 9,049,267, entitled “System And Method For Processing Information Via Networked Computers Including Request Handlers, Process Handlers, And Task Handlers.” The 2015 complaint seeks injunctive relief, an unspecified amount of damages, treble damages, costs, and interest. In July 2016, the court invalidated the patents asserted in the 2015 complaint and granted our motion to dismiss the complaint with prejudice. In July 2016, Appistry appealed that judgment to the United States Court of Appeals for the Federal Circuit. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters. In March 2014, Kaavo, Inc. filed a complaint against Amazon.com, Inc. and Amazon Web Services, Inc. for patent infringement in the United States District Court for the District of Delaware. The complaint alleges, among other things, that Amazon Web Services’ Elastic Beanstalk and CloudFormation infringe U.S. Patent No. 8,271,974, entitled “Cloud Computing Lifecycle Management For N-Tier Applications.” The complaint seeks injunctive relief, an unspecified amount of damages, costs, and interest. In June 2015, the case was stayed pending resolution of a motion for judgment on the pleadings in a related case. In May 2016, the case was reopened for claim construction discovery. In July 2015, Kaavo Inc. filed another complaint against Amazon.com, Inc. and Amazon Web Services, Inc. in the United States District Court for the District of Delaware. The 2015 complaint alleges, among other things, that CloudFormation infringes U.S. Patent No. 9,043,751, entitled “Methods And Devices For Managing A Cloud Computing Environment.” The 2015 complaint seeks injunctive relief, an unspecified amount of damages, enhanced damages, attorneys’ fees, costs, and interest. In January 2016, the 2015 case was stayed pending resolution of a motion for judgment on the pleadings. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters. In March 2015, Zitovault, LLC filed a complaint against Amazon.com, Inc., Amazon.com, LLC, Amazon Web Services, Inc., and Amazon Web Services, LLC for patent infringement in the United States District Court for the Eastern District of Texas. The complaint alleges that Elastic Compute Cloud, Virtual Private Cloud, Elastic Load Balancing, Auto-Scaling, and Elastic Beanstalk infringe U.S. Patent No. 6,484,257, entitled “System and Method for Maintaining N Number of Simultaneous Cryptographic Sessions Using a Distributed Computing Environment.” The complaint seeks injunctive relief, an unspecified amount of damages, enhanced damages, attorneys’ fees, costs, and interest. In January 2016, the case was transferred to the United States District Court for the Western District of Washington. In June 2016, the case was stayed pending resolution of a review petition we filed with the United States Patent and Trademark Office. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. The outcomes of our legal proceedings and other contingencies are inherently unpredictable, subject to significant uncertainties, and could be material to our operating results and cash flows for a particular period. In addition, for some matters for which a loss is probable or reasonably possible, an estimate of the amount of loss or range of losses is not possible and we may be unable to estimate the possible loss or range of losses that could potentially result from the application of non-monetary remedies. See also “Note 6 — Income Taxes.” |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT In December 2014, and November 2012, we issued $6.0 billion and $3.0 billion of unsecured senior notes, of which $8.3 billion is outstanding, as described in the table below (collectively, the “Notes”). As of June 30, 2016 , and December 31, 2015 , the unamortized discount on the Notes was $94 million and $97 million . We also have other long-term debt with a carrying amount, including the current portion, of $97 million and $312 million as of June 30, 2016 , and December 31, 2015 . The face value of our total long-term debt obligations is as follows (in millions): June 30, December 31, 2015 1.20% Notes due on November 29, 2017 (1) $ 1,000 $ 1,000 2.50% Notes due on November 29, 2022 (1) 1,250 1,250 2.60% Notes due on December 5, 2019 (2) 1,000 1,000 3.30% Notes due on December 5, 2021 (2) 1,000 1,000 3.80% Notes due on December 5, 2024 (2) 1,250 1,250 4.80% Notes due on December 5, 2034 (2) 1,250 1,250 4.95% Notes due on December 5, 2044 (2) 1,500 1,500 Other long-term debt 97 312 Total debt 8,347 8,562 Less current portion of long-term debt (41 ) (238 ) Face value of long-term debt $ 8,306 $ 8,324 _____________________________ (1) Issued in November 2012, effective interest rates of the 2017 and 2022 Notes were 1.38% and 2.66% . (2) Issued in December 2014, effective interest rates of the 2019, 2021, 2024, 2034, and 2044 Notes were 2.73% , 3.43% , 3.90% , 4.92% , and 5.11% . Interest on the Notes issued in 2014 is payable semi-annually in arrears in June and December . Interest on the Notes issued in 2012 is payable semi-annually in arrears in May and November . We may redeem the Notes at any time in whole, or from time to time, in part at specified redemption prices. We are not subject to any financial covenants under the Notes. The proceeds from the Notes are used for general corporate purposes. The estimated fair value of the Notes was approximately $9.1 billion and $8.5 billion as of June 30, 2016 , and December 31, 2015 , which is based on quoted prices for our publicly-traded debt as of those dates. The other debt, including the current portion, had a weighted-average interest rate of 2.45% and 3.74% as of June 30, 2016 , and December 31, 2015 . We used the net proceeds from the issuance of this debt primarily to fund certain international operations. The estimated fair value of the other long-term debt, which is based on Level 2 inputs, approximated its carrying value as of June 30, 2016 , and December 31, 2015 . On May 20, 2016 , we entered into an unsecured revolving credit facility (the “Credit Agreement”) with a syndicate of lenders that provides us with a borrowing capacity of up to $3.0 billion . This Credit Agreement replaces the prior credit agreement entered into on September 5, 2014. The Credit Agreement has a term of three years , but it may be extended for up to three additional one-year terms if approved by the lenders . The initial interest rate applicable to outstanding balances under the Credit Agreement is the London interbank offered rate (“ LIBOR ”) plus 0.60% , with a commitment fee of 0.05% on the undrawn portion of the credit facility, under our current credit ratings. If our credit ratings are downgraded these rates could increase to as much as LIBOR plus 1.00% and 0.09% , respectively. There were no borrowings outstanding under the credit agreements as of June 30, 2016 , and December 31, 2015 . |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Stock Repurchase Activity In February 2016, the Board of Directors authorized a program to repurchase up to $5 billion of our common stock, with no fixed expiration. This stock repurchase authorization replaces the previous $2 billion stock repurchase authorization, approved by the Board of Directors in 2010. There were no repurchases of common stock in Q2 2016 or Q2 2015 . Stock Award Activity Common shares outstanding plus shares underlying outstanding stock awards totaled 495 million as of June 30, 2016 , and 490 million as of December 31, 2015 . These totals include all vested and unvested stock awards outstanding, including those awards we estimate will be forfeited. Stock-based compensation expense is as follows (in millions): Three Months Ended Six Months Ended 2016 2015 2016 2015 Fulfillment $ 186 $ 132 $ 302 $ 222 Marketing 80 50 136 84 Technology and content 419 319 737 552 General and administrative 83 62 137 111 Total stock-based compensation expense $ 768 $ 563 $ 1,312 $ 969 The compensation expense for stock options, the total intrinsic value for stock options outstanding, the amount of cash received from the exercise of stock options, and the related tax benefits were not material for the six months ended June 30, 2016 . The following table summarizes our restricted stock unit activity for the six months ended June 30, 2016 (in millions): Number of Units Weighted-Average Grant-Date Fair Value Outstanding as of December 31, 2015 18.9 $ 362 Units granted 6.3 609 Units vested (3.1 ) 309 Units forfeited (1.2 ) 401 Outstanding as of June 30, 2016 20.9 $ 443 Scheduled vesting for outstanding restricted stock units as of June 30, 2016 , is as follows (in millions): Six Months Ended December 31, Year Ended December 31, 2016 2017 2018 2019 2020 Thereafter Total Scheduled vesting—restricted stock units 3.1 7.1 6.9 2.7 0.8 0.3 20.9 As of June 30, 2016 , there was $4.5 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements. This compensation is recognized on an accelerated basis with approximately half of the compensation expected to be expensed in the next twelve months, and has a weighted-average recognition period of 1.2 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our tax provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, is subject to significant variation due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss and the mix of jurisdictions to which they relate, changes in how we do business, acquisitions (including integrations) and investments, audit-related developments, foreign currency gains (losses), tax law developments (including changes in statutes, regulations, case law, and administrative practices), and relative changes of expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income or loss. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. For 2016 , our effective tax rate will be favorably affected by the impact of the U.S. federal research and development credit, an increase in amount of pre-tax income relative to income tax expense, an increase in amortization deductions for which we will realize a tax benefit, and a decline in the proportion of nondeductible expenses and losses for which we may not realize a related tax benefit. We record valuation allowances against the deferred tax assets associated with losses for which we may not realize a related tax benefit. Our effective tax rate will also be adversely affected by state income taxes. We will generate income and losses in lower tax jurisdictions primarily related to our European operations, which are headquartered in Luxembourg. Our income tax provision for the six months ended June 30, 2016 was $782 million , which included $70 million of discrete tax benefits primarily attributable to audit-related and tax law developments. Our income tax provision for the six months ended June 30, 2015 was $337 million , which included $41 million of discrete tax expense primarily attributed to acquisition integrations. Cash paid for income taxes (net of refunds) was $88 million and $65 million in Q2 2016 and Q2 2015 and $226 million and $119 million for the six months ended June 30, 2016 and 2015 . As of June 30, 2016 , and December 31, 2015 , tax contingencies were $1.6 billion and $1.2 billion . We expect the total amount of tax contingencies will grow in 2016 . In addition, changes in state, federal, and foreign tax laws may increase our tax contingencies. The timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ from the amounts accrued. It is reasonably possible that within the next 12 months we will receive additional assessments by various tax authorities or possibly reach resolution of income tax examinations in one or more jurisdictions. These assessments or settlements may or may not result in changes to our contingencies related to positions on prior years’ tax filings. We are under examination, or may be subject to examination, by the Internal Revenue Service (“IRS”) for the calendar year 2005 and thereafter . These examinations may lead to ordinary course adjustments or proposed adjustments to our taxes or our net operating losses with respect to years under examination as well as subsequent periods. As previously disclosed, we have received Notices of Proposed Adjustment from the IRS for transactions undertaken in the 2005 and 2006 calendar years relating to transfer pricing with our foreign subsidiaries. The IRS is seeking to increase our U.S. taxable income by an amount that would result in additional federal tax of approximately $1.5 billion , subject to interest. To date, we have not resolved this matter administratively and are currently contesting it in U.S. Tax Court. We continue to disagree with these IRS positions and intend to defend ourselves vigorously in this matter. In addition to the risk of additional tax for 2005 and 2006 transactions, if this litigation is adversely determined or if the IRS were to seek transfer pricing adjustments of a similar nature for transactions in subsequent years, we could be subject to significant additional tax liabilities. Certain of our subsidiaries are under examination or investigation or may be subject to examination or investigation by the French Tax Administration (“FTA”) for calendar year 2006 and thereafter . These examinations may lead to ordinary course adjustments or proposed adjustments to our taxes. In September 2012, we received proposed tax assessment notices for calendar years 2006 through 2010 relating to the allocation of income between foreign jurisdictions. In June 2015, we received final tax collection notices for these years assessing additional French tax of €196 million , including interest and penalties through September 2012. We disagree with the assessment and intend to contest it vigorously. We plan to pursue all available administrative remedies, and if we are not able to resolve this matter, we plan to pursue judicial remedies. In addition to the risk of additional tax for years 2006 through 2010, if this litigation is adversely determined or if the FTA were to seek adjustments of a similar nature for subsequent years, we could be subject to significant additional tax liabilities. In addition, in October 2014, the European Commission opened a formal investigation to examine whether decisions by the tax authorities in Luxembourg with regard to the corporate income tax paid by certain of our subsidiaries comply with European Union rules on state aid. If this matter is adversely resolved, Luxembourg may be required to assess, and we may be required to pay, additional amounts with respect to current and prior periods from 2003 onwards and our taxes in the future could increase. We are also subject to taxation in various states and other foreign jurisdictions including Canada, China, Germany, India, Italy, Japan, Luxembourg, and the United Kingdom. We are under, or may be subject to, audit or examination and additional assessments by the relevant authorities in respect of these particular jurisdictions primarily for 2008 and thereafter. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We have organized our operations into three segments: North America, International, and AWS. We allocate to segment results the operating expenses “Fulfillment,” “Marketing,” “Technology and content,” and “General and administrative” based on usage, which is generally reflected in the segment in which the costs are incurred. The majority of technology infrastructure expenses are allocated to the AWS segment based on usage. The majority of the remaining non-infrastructure technology costs are incurred in the U.S. and are allocated to our North America segment. In Q1 2016, we began allocating stock-based compensation and “Other operating expense (income), net” to our segment results. In our segment results, these amounts are combined and titled “Stock-based compensation and other.” There are no internal revenue transactions between our reportable segments. These segments reflect the way the Company evaluates its business performance and manages its operations. North America The North America segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America-focused websites such as www.amazon.com, www.amazon.ca, and www.amazon.com.mx. This segment includes export sales from these websites. International The International segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused websites such as www.amazon.com.au, www.amazon.com.br, www.amazon.cn, www.amazon.fr, www.amazon.de, www.amazon.in, www.amazon.it, www.amazon.co.jp, www.amazon.nl, www.amazon.es, and www.amazon.co.uk. This segment includes export sales from these internationally-focused websites (including export sales from these sites to customers in the U.S., Mexico, and Canada), but excludes export sales from our North American websites. AWS The AWS segment consists of amounts earned from global sales of compute, storage, database, and other AWS service offerings for start-ups, enterprises, government agencies, and academic institutions. Information on reportable segments and reconciliation to consolidated net income is as follows (in millions): Three Months Ended Six Months Ended 2016 2015 2016 2015 North America Net sales $ 17,674 $ 13,796 $ 34,670 $ 27,202 Operating expenses 16,517 13,093 32,590 25,982 Operating income before stock-based compensation and other 1,157 703 $ 2,080 $ 1,220 Stock-based compensation and other 455 355 790 617 Operating income $ 702 $ 348 $ 1,290 $ 603 International Net sales $ 9,844 $ 7,565 $ 19,410 $ 15,310 Operating expenses 9,756 7,584 19,301 15,405 Operating income (loss) before stock-based compensation and other 88 (19 ) $ 109 $ (95 ) Stock-based compensation and other 223 170 364 288 Operating income (loss) $ (135 ) $ (189 ) $ (255 ) $ (383 ) AWS Net sales $ 2,886 $ 1,824 $ 5,452 $ 3,389 Operating expenses 2,023 1,433 3,873 2,734 Operating income before stock-based compensation and other 863 391 $ 1,579 $ 655 Stock-based compensation and other 145 86 258 156 Operating income $ 718 $ 305 $ 1,321 $ 499 Consolidated Net sales $ 30,404 $ 23,185 $ 59,532 $ 45,901 Operating expenses 28,296 22,110 55,764 44,121 Operating income before stock-based compensation and other 2,108 1,075 3,768 1,780 Stock-based compensation and other 823 611 1,412 1,061 Operating income 1,285 464 2,356 719 Total non-operating income (expense) (106 ) (102 ) (122 ) (336 ) Provision for income taxes (307 ) (266 ) (782 ) (337 ) Equity-method investment activity, net of tax (15 ) (4 ) (82 ) (11 ) Net income $ 857 $ 92 $ 1,370 $ 35 We have aggregated our products and services into groups of similar products and services and provided the supplemental disclosure of net sales (in millions) below. We evaluate whether additional disclosure is appropriate when a product or service category begins to approach a significant level of net sales. For the periods presented, no individual product or service represented more than 10% of net sales. Three Months Ended Six Months Ended 2016 2015 2016 2015 Net Sales: Media $ 5,211 $ 4,714 $ 10,899 $ 10,002 Electronics and other general merchandise 21,963 16,412 42,507 32,041 AWS 2,886 1,824 5,452 3,389 Other (1) 344 235 674 469 Consolidated $ 30,404 $ 23,185 $ 59,532 $ 45,901 ___________________ (1) Includes sales from non-retail activities, such as certain advertising services and our co-branded credit card agreements. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information We have prepared the accompanying consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our consolidated balance sheets, operating results, and cash flows for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2016 due to seasonal and other factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted in accordance with the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes in Item 8 of Part II, “Financial Statements and Supplementary Data,” of our 2015 Annual Report on Form 10-K. |
Prior Period Reclassifications | Prior Period Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation, including the allocation of stock-based compensation and “Other operating expense (income), net” to segment results within “Note 7 — Segment Information.” These revised segment results reflect the way the Company evaluates its business performance and manages its operations. In Q1 2016, current deferred tax assets and current deferred tax liabilities were reclassified as non-current. See “Recent Accounting Pronouncements” below. We also reclassified our capitalized debt issuance costs from “Other assets” to “Long-term debt” as a result of the adoption of new accounting guidance. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Amazon.com, Inc., its wholly-owned subsidiaries, and those entities in which we have a variable interest and of which we are the primary beneficiary, including certain entities in India and China (collectively, the “Company”). Intercompany balances and transactions between consolidated entities are eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, determining the selling price of products and services in multiple element revenue arrangements and determining the amortization period of these elements, incentive discount offers, sales returns, vendor funding, stock-based compensation forfeiture rates, income taxes, valuation and impairment of investments, inventory valuation and inventory purchase commitments, collectability of receivables, valuation of acquired intangibles and goodwill, depreciable lives of property and equipment, internal-use software and website development costs, acquisition purchase price allocations, investments in equity interests, and contingencies. Actual results could differ materially from those estimates. |
Earnings per Share | Earnings per Share Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when we have a net loss, stock awards are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB deferred the effective date of the revenue recognition guidance to reporting periods beginning after December 15, 2017. Early adoption is permitted for reporting periods beginning after December 15, 2016. We are continuing to evaluate our method of adoption and the impact this ASU, and related amendments and interpretations, will have on our consolidated financial statements. In November 2015, the FASB issued an ASU amending the accounting for income taxes and requiring all deferred tax assets and liabilities to be classified as non-current on the consolidated balance sheets. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The ASU may be adopted either prospectively or retrospectively. We adopted this ASU in Q1 2016 and retrospectively adjusted prior periods. Upon adoption, current deferred tax assets of $769 million and current deferred tax liabilities of $13 million in our December 31, 2015 consolidated balance sheet were reclassified as non-current. In February 2016, the FASB issued an ASU amending the accounting for leases. The new guidance requires the recognition of lease assets and liabilities for operating leases with terms of more than 12 months, in addition to those currently recorded, on our consolidated balance sheets. Presentation of leases within the consolidated statements of operations and consolidated statements of cash flows will be generally consistent with the current lease accounting guidance. The ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of the ASU; however, we expect the ASU will have a material impact on our consolidated financial statements, primarily to the consolidated balance sheets and related disclosures. In March 2016, the FASB issued an ASU amending the accounting for stock-based compensation and requiring excess tax benefits and deficiencies to be recognized as a component of income tax expense rather than equity. This guidance also requires excess tax benefits to be presented as an operating activity on the statement of cash flows and allows an entity to make an accounting policy election to either estimate expected forfeitures or to account for them as they occur. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact of the ASU; however, we expect the ASU will have a material impact on our consolidated financial statements. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Calculation of Diluted Shares | The following table shows the calculation of diluted shares (in millions): Three Months Ended Six Months Ended 2016 2015 2016 2015 Shares used in computation of basic earnings per share 473 467 472 466 Total dilutive effect of outstanding stock awards 10 9 10 9 Shares used in computation of diluted earnings per share 483 476 482 475 |
Cash, Cash Equivalents, and M17
Cash, Cash Equivalents, and Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Fair Value by Major Security Type | The following tables summarize, by major security type, our cash, cash equivalents, and marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in millions): June 30, 2016 December 31, 2015 Cost or Gross Gross Total Total Cash $ 6,126 $ — $ — $ 6,126 $ 6,201 Level 1 securities: Money market funds 6,802 — — 6,802 8,025 Equity securities 23 57 — 80 15 Level 2 securities: Foreign government and agency securities 50 — — 50 49 U.S. government and agency securities 3,180 4 (3 ) 3,181 5,167 Corporate debt securities 538 2 — 540 477 Asset-backed securities 147 — (1 ) 146 117 Other fixed income securities 70 1 — 71 42 $ 16,936 $ 64 $ (4 ) $ 16,996 $ 20,093 Less: Restricted cash, cash equivalents, and marketable securities (1) (456 ) (285 ) Total cash, cash equivalents, and marketable securities $ 16,540 $ 19,808 ___________________ (1) We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable securities as collateral for standby and trade letters of credit, guarantees, debt, real estate leases, and amounts due to third-party sellers in certain jurisdictions. We classify cash, cash equivalents, and marketable securities with use restrictions of less than twelve months as “Accounts receivable, net and other” and of twelve months or longer as non-current “Other assets” on our consolidated balance sheets. See “Note 3 — Commitments and Contingencies.” |
Investments Classified by Contractual Maturity Date | The following table summarizes the contractual maturities of our cash equivalents and marketable fixed-income securities as of June 30, 2016 (in millions): Amortized Cost Estimated Fair Value Due within one year $ 9,138 $ 9,140 Due after one year through five years 1,272 1,275 Due after five years through ten years 155 154 Due after ten years 222 221 Total $ 10,787 $ 10,790 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations, as of June 30, 2016 (in millions): Six Months Ended December 31, Year Ended December 31, 2016 2017 2018 2019 2020 Thereafter Total Debt principal and interest $ 166 $ 1,324 $ 312 $ 1,272 $ 246 $ 9,157 $ 12,477 Capital lease obligations, including interest (1) 1,607 3,251 1,995 691 268 184 7,996 Finance lease obligations, including interest (2) 88 177 181 185 188 1,582 2,401 Operating leases 670 1,140 1,034 909 848 3,553 8,154 Unconditional purchase obligations (3) 341 699 506 263 123 35 1,967 Other commitments (4) (5) 736 573 430 339 283 2,062 4,423 Total commitments $ 3,608 $ 7,164 $ 4,458 $ 3,659 $ 1,956 $ 16,573 $ 37,418 ___________________ (1) Excluding interest, current capital lease obligations of $3.4 billion and $3.0 billion are recorded within “Accrued expenses and other” as of June 30, 2016 , and December 31, 2015 , and $4.3 billion and $4.2 billion are recorded within “Other long-term liabilities” as of June 30, 2016 , and December 31, 2015 . (2) Excluding interest, current finance lease obligations of $107 million and $99 million are recorded within “Accrued expenses and other” as of June 30, 2016 , and December 31, 2015 , and $1.8 billion and $1.7 billion are recorded within “Other long-term liabilities” as of June 30, 2016 , and December 31, 2015 . (3) Includes unconditional purchase obligations related to long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets. For those agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified. (4) Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements and equipment lease arrangements that have not been placed in service and digital media content liabilities associated with long-term digital media content assets with initial terms greater than one year. (5) Excludes $1.6 billion of tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt Obligations | The face value of our total long-term debt obligations is as follows (in millions): June 30, December 31, 2015 1.20% Notes due on November 29, 2017 (1) $ 1,000 $ 1,000 2.50% Notes due on November 29, 2022 (1) 1,250 1,250 2.60% Notes due on December 5, 2019 (2) 1,000 1,000 3.30% Notes due on December 5, 2021 (2) 1,000 1,000 3.80% Notes due on December 5, 2024 (2) 1,250 1,250 4.80% Notes due on December 5, 2034 (2) 1,250 1,250 4.95% Notes due on December 5, 2044 (2) 1,500 1,500 Other long-term debt 97 312 Total debt 8,347 8,562 Less current portion of long-term debt (41 ) (238 ) Face value of long-term debt $ 8,306 $ 8,324 _____________________________ (1) Issued in November 2012, effective interest rates of the 2017 and 2022 Notes were 1.38% and 2.66% . (2) Issued in December 2014, effective interest rates of the 2019, 2021, 2024, 2034, and 2044 Notes were 2.73% , 3.43% , 3.90% , 4.92% , and 5.11% . |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stock-Based Compensation Expense | Stock-based compensation expense is as follows (in millions): Three Months Ended Six Months Ended 2016 2015 2016 2015 Fulfillment $ 186 $ 132 $ 302 $ 222 Marketing 80 50 136 84 Technology and content 419 319 737 552 General and administrative 83 62 137 111 Total stock-based compensation expense $ 768 $ 563 $ 1,312 $ 969 |
Nonvested Restricted Stock Units Activity | The following table summarizes our restricted stock unit activity for the six months ended June 30, 2016 (in millions): Number of Units Weighted-Average Grant-Date Fair Value Outstanding as of December 31, 2015 18.9 $ 362 Units granted 6.3 609 Units vested (3.1 ) 309 Units forfeited (1.2 ) 401 Outstanding as of June 30, 2016 20.9 $ 443 |
Nonvested Share Activity | Scheduled vesting for outstanding restricted stock units as of June 30, 2016 , is as follows (in millions): Six Months Ended December 31, Year Ended December 31, 2016 2017 2018 2019 2020 Thereafter Total Scheduled vesting—restricted stock units 3.1 7.1 6.9 2.7 0.8 0.3 20.9 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Information on reportable segments and reconciliation to consolidated net income is as follows (in millions): Three Months Ended Six Months Ended 2016 2015 2016 2015 North America Net sales $ 17,674 $ 13,796 $ 34,670 $ 27,202 Operating expenses 16,517 13,093 32,590 25,982 Operating income before stock-based compensation and other 1,157 703 $ 2,080 $ 1,220 Stock-based compensation and other 455 355 790 617 Operating income $ 702 $ 348 $ 1,290 $ 603 International Net sales $ 9,844 $ 7,565 $ 19,410 $ 15,310 Operating expenses 9,756 7,584 19,301 15,405 Operating income (loss) before stock-based compensation and other 88 (19 ) $ 109 $ (95 ) Stock-based compensation and other 223 170 364 288 Operating income (loss) $ (135 ) $ (189 ) $ (255 ) $ (383 ) AWS Net sales $ 2,886 $ 1,824 $ 5,452 $ 3,389 Operating expenses 2,023 1,433 3,873 2,734 Operating income before stock-based compensation and other 863 391 $ 1,579 $ 655 Stock-based compensation and other 145 86 258 156 Operating income $ 718 $ 305 $ 1,321 $ 499 Consolidated Net sales $ 30,404 $ 23,185 $ 59,532 $ 45,901 Operating expenses 28,296 22,110 55,764 44,121 Operating income before stock-based compensation and other 2,108 1,075 3,768 1,780 Stock-based compensation and other 823 611 1,412 1,061 Operating income 1,285 464 2,356 719 Total non-operating income (expense) (106 ) (102 ) (122 ) (336 ) Provision for income taxes (307 ) (266 ) (782 ) (337 ) Equity-method investment activity, net of tax (15 ) (4 ) (82 ) (11 ) Net income $ 857 $ 92 $ 1,370 $ 35 |
Revenue from External Customers by Products and Services | Three Months Ended Six Months Ended 2016 2015 2016 2015 Net Sales: Media $ 5,211 $ 4,714 $ 10,899 $ 10,002 Electronics and other general merchandise 21,963 16,412 42,507 32,041 AWS 2,886 1,824 5,452 3,389 Other (1) 344 235 674 469 Consolidated $ 30,404 $ 23,185 $ 59,532 $ 45,901 ___________________ (1) Includes sales from non-retail activities, such as certain advertising services and our co-branded credit card agreements. |
Accounting Policies Calculation
Accounting Policies Calculation of Diluted Shares (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Shares used in computation of basic earnings per share | 473 | 467 | 472 | 466 |
Total dilutive effect of outstanding stock awards | 10 | 9 | 10 | 9 |
Shares used in computation of diluted earnings per share | 483 | 476 | 482 | 475 |
Accounting Policies Recent Acco
Accounting Policies Recent Accounting Pronouncements (Details) - Recent Accounting Pronouncements $ in Millions | Dec. 31, 2015USD ($) |
Recent Accounting Pronouncements | |
Deferred Tax Assets, Gross, Current | $ 769 |
Deferred Tax Liabilities, Gross, Current | $ 13 |
Cash, Cash Equivalents, and M24
Cash, Cash Equivalents, and Marketable Securities Summary by Major Security Type Cash Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis and Categorized Using Fair Value Hierarchy (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Cash, cash equivalents and marketable securities [Line Items] | |||
Less: Restricted cash, cash equivalents, and marketable securities | [1] | $ (456) | $ (285) |
Cash, Cash Equivalents, and Short-term Investments | 16,540 | 19,808 | |
Cash | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 6,126 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Cash, Cash Equivalents, and Short-term Investments | 6,126 | 6,201 | |
Cash, cash equivalents, and marketable securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 16,936 | ||
Gross Unrealized Gains | 64 | ||
Gross Unrealized Losses | (4) | ||
Cash, Cash Equivalents, and Short-term Investments | 16,996 | 20,093 | |
Level 1 Securities | Money market funds | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 6,802 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Cash, Cash Equivalents, and Short-term Investments | 6,802 | 8,025 | |
Level 1 Securities | Equity securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 23 | ||
Gross Unrealized Gains | 57 | ||
Gross Unrealized Losses | 0 | ||
Cash, Cash Equivalents, and Short-term Investments | 80 | 15 | |
Level 2 Securities | Foreign government and agency securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 50 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Cash, Cash Equivalents, and Short-term Investments | 50 | 49 | |
Level 2 Securities | U.S. government and agency securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 3,180 | ||
Gross Unrealized Gains | 4 | ||
Gross Unrealized Losses | (3) | ||
Cash, Cash Equivalents, and Short-term Investments | 3,181 | 5,167 | |
Level 2 Securities | Corporate debt securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 538 | ||
Gross Unrealized Gains | 2 | ||
Gross Unrealized Losses | 0 | ||
Cash, Cash Equivalents, and Short-term Investments | 540 | 477 | |
Level 2 Securities | Asset-backed securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 147 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | (1) | ||
Cash, Cash Equivalents, and Short-term Investments | 146 | 117 | |
Level 2 Securities | Other fixed income securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 70 | ||
Gross Unrealized Gains | 1 | ||
Gross Unrealized Losses | 0 | ||
Cash, Cash Equivalents, and Short-term Investments | $ 71 | $ 42 | |
[1] | We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable securities as collateral for standby and trade letters of credit, guarantees, debt, real estate leases, and amounts due to third-party sellers in certain jurisdictions. We classify cash, cash equivalents, and marketable securities with use restrictions of less than twelve months as “Accounts receivable, net and other” and of twelve months or longer as non-current “Other assets” on our consolidated balance sheets. See “Note 3 — Commitments and Contingencies.” |
Cash, Cash Equivalents, and M25
Cash, Cash Equivalents, and Marketable Securities Summary of Contractual Maturities of Cash Equivalent and Marketable Fixed Income Securities (Detail) $ in Millions | Jun. 30, 2016USD ($) |
Investments Classified by Contractual Maturity Date [Line Items] | |
Amortized Cost | $ 10,787 |
Estimated Fair Value | 10,790 |
Due within one year | |
Investments Classified by Contractual Maturity Date [Line Items] | |
Amortized Cost | 9,138 |
Estimated Fair Value | 9,140 |
Due after one year through five years | |
Investments Classified by Contractual Maturity Date [Line Items] | |
Amortized Cost | 1,272 |
Estimated Fair Value | 1,275 |
Due after five years through ten years | |
Investments Classified by Contractual Maturity Date [Line Items] | |
Amortized Cost | 155 |
Estimated Fair Value | 154 |
Due after ten years | |
Investments Classified by Contractual Maturity Date [Line Items] | |
Amortized Cost | 222 |
Estimated Fair Value | $ 221 |
Cash, Cash Equivalents, and M26
Cash, Cash Equivalents, and Marketable Securities Cash, Cash Equivalents, and Marketable Securities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Investments, Warrant Assets | |||||
Fair Value Adjustment of Warrant Assets | $ (26) | $ 0 | $ (20) | $ 2 | |
Level 2 Securities | |||||
Investments, Warrant Assets | |||||
Warrants and Rights Outstanding | $ 133 | $ 133 | $ 16 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | |||||
Rental expense under operating lease agreements | $ 336 | $ 267 | $ 657 | $ 533 | |
Capital Lease Obligations, Current | 3,400 | 3,400 | $ 3,000 | ||
Capital Lease Obligations, Noncurrent | 4,300 | 4,300 | 4,200 | ||
Finance Lease Obligations, Current | 107 | 107 | 99 | ||
Finance Lease Obligations, Noncurrent | 1,800 | 1,800 | 1,700 | ||
Tax contingencies | 1,600 | 1,600 | 1,200 | ||
Pledged Assets | $ 581 | $ 581 | $ 418 |
Commitments and Contingencies P
Commitments and Contingencies Principal Contractual Commitments Excluding Open Orders for Inventory Purchases That Support Normal Operations (Detail) $ in Millions | Jun. 30, 2016USD ($) | |
Contractual commitments | ||
Six Months Ended December 31, 2016 | $ 3,608 | |
Year Ended December 31, 2017 | 7,164 | |
Year Ended December 31, 2018 | 4,458 | |
Year Ended December 31, 2019 | 3,659 | |
Year Ended December 31, 2020 | 1,956 | |
Thereafter | 16,573 | |
Total | 37,418 | |
Capital lease obligations, including interest | ||
Six Months Ended December 31, 2016 | 1,607 | [1] |
Year Ended December 31, 2017 | 3,251 | [1] |
Year Ended December 31, 2018 | 1,995 | [1] |
Year Ended December 31, 2019 | 691 | [1] |
Year Ended December 31, 2020 | 268 | [1] |
Thereafter | 184 | [1] |
Total | 7,996 | [1] |
Operating leases | ||
Six Months Ended December 31, 2016 | 670 | |
Year Ended December 31, 2017 | 1,140 | |
Year Ended December 31, 2018 | 1,034 | |
Year Ended December 31, 2019 | 909 | |
Year Ended December 31, 2020 | 848 | |
Thereafter | 3,553 | |
Total | 8,154 | |
Unconditional purchase obligations | ||
Six Months Ended December 31, 2016 | 341 | [2] |
Year Ended December 31, 2017 | 699 | [2] |
Year Ended December 31, 2018 | 506 | [2] |
Year Ended December 31, 2019 | 263 | [2] |
Year Ended December 31, 2020 | 123 | [2] |
Thereafter | 35 | [2] |
Total | 1,967 | [2] |
Other commitments | ||
Six Months Ended December 31, 2016 | 736 | [3],[4] |
Year Ended December 31, 2017 | 573 | [3],[4] |
Year Ended December 31, 2018 | 430 | [3],[4] |
Year Ended December 31, 2019 | 339 | [3],[4] |
Year Ended December 31, 2020 | 283 | [3],[4] |
Thereafter | 2,062 | [3],[4] |
Total | 4,423 | [3],[4] |
Debt principal and interest | ||
Contractual commitments | ||
Six Months Ended December 31, 2016 | 166 | |
Year Ended December 31, 2017 | 1,324 | |
Year Ended December 31, 2018 | 312 | |
Year Ended December 31, 2019 | 1,272 | |
Year Ended December 31, 2020 | 246 | |
Thereafter | 9,157 | |
Total | 12,477 | |
Finance lease obligations, including interest | ||
Contractual commitments | ||
Six Months Ended December 31, 2016 | 88 | [5] |
Year Ended December 31, 2017 | 177 | [5] |
Year Ended December 31, 2018 | 181 | [5] |
Year Ended December 31, 2019 | 185 | [5] |
Year Ended December 31, 2020 | 188 | [5] |
Thereafter | 1,582 | [5] |
Total | $ 2,401 | [5] |
[1] | Excluding interest, current capital lease obligations of $3.4 billion and $3.0 billion are recorded within “Accrued expenses and other” as of June 30, 2016, and December 31, 2015, and $4.3 billion and $4.2 billion are recorded within “Other long-term liabilities” as of June 30, 2016, and December 31, 2015. | |
[2] | Includes unconditional purchase obligations related to long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets. For those agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified. | |
[3] | Excludes $1.6 billion of tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any | |
[4] | Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements and equipment lease arrangements that have not been placed in service and digital media content liabilities associated with long-term digital media content assets with initial terms greater than one year. | |
[5] | Excluding interest, current finance lease obligations of $107 million and $99 million are recorded within “Accrued expenses and other” as of June 30, 2016, and December 31, 2015, and $1.8 billion and $1.7 billion are recorded within “Other long-term liabilities” as of June 30, 2016, and December 31, 2015. |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | |||
May 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 30, 2012 | |
Debt Instrument [Line Items] | |||||
Face amount outstanding | $ 8,300,000,000 | ||||
Unamortized discount | 94,000,000 | $ 97,000,000 | |||
Carrying amount of other long-term debt including current portion | 97,000,000 | 312,000,000 | |||
Total estimated fair value of notes | $ 9,100,000,000 | $ 8,500,000,000 | |||
Other long-term debt, weighted average interest rate | 2.45% | 3.74% | |||
Credit Agreement, initiation date | May 20, 2016 | ||||
Credit Agreement, maximum borrowing capacity | $ 3,000,000,000 | ||||
Credit Agreement, term | 3 years | ||||
Credit Agreement, term additional information | may be extended for up to three additional one-year terms if approved by the lenders | ||||
Credit Agreement, variable rate basis | LIBOR | ||||
Credit Agreement, borrowings outstanding | $ 0 | $ 0 | |||
Issued in December 2014 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 6,000,000,000 | ||||
Interest payment frequency | semi-annually in arrears in June and December | ||||
Issued in November 2012 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 3,000,000,000 | ||||
Interest payment frequency | semi-annually in arrears in May and November | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit Agreement, basis spread on variable rate | 0.60% | ||||
Credit Agreement, commitment fee | 0.05% | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Credit Agreement, basis spread on variable rate | 1.00% | ||||
Credit Agreement, commitment fee | 0.09% |
Long-Term Debt Long-Term Debt O
Long-Term Debt Long-Term Debt Obligations (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 8,347 | $ 8,562 | |
Other long-term debt | 97 | 312 | |
Less current portion of long-term debt | (41) | (238) | |
Face value of long-term debt | $ 8,306 | 8,324 | |
1.20% Notes due on November 29, 2017 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 1.20% | ||
Long-term debt | [1] | $ 1,000 | 1,000 |
Effective interest rates | 1.38% | ||
2.50% Notes due on November 29, 2022 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 2.50% | ||
Long-term debt | [1] | $ 1,250 | 1,250 |
Effective interest rates | 2.66% | ||
2.60% Notes due on December 5, 2019 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 2.60% | ||
Long-term debt | [2] | $ 1,000 | 1,000 |
Effective interest rates | 2.73% | ||
3.30% Notes due on December 5, 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.30% | ||
Long-term debt | [2] | $ 1,000 | 1,000 |
Effective interest rates | 3.43% | ||
3.80% Notes due on December 5, 2024 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.80% | ||
Long-term debt | [2] | $ 1,250 | 1,250 |
Effective interest rates | 3.90% | ||
4.80% Notes due on December 5, 2034 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.80% | ||
Long-term debt | [2] | $ 1,250 | 1,250 |
Effective interest rates | 4.92% | ||
4.95% Notes due on December 5, 2044 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.95% | ||
Long-term debt | [2] | $ 1,500 | $ 1,500 |
Effective interest rates | 5.11% | ||
[1] | Issued in November 2012, effective interest rates of the 2017 and 2022 Notes were 1.38% and 2.66%. | ||
[2] | Issued in December 2014, effective interest rates of the 2019, 2021, 2024, 2034, and 2044 Notes were 2.73%, 3.43%, 3.90%, 4.92%, and 5.11%. |
Stockholders Equity - Additiona
Stockholders Equity - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Feb. 29, 2016 | Dec. 31, 2015 | Jan. 31, 2010 | |
Stockholders Equity Note [Line Items] | |||||||
Stock-based compensation | $ 768 | $ 563 | $ 1,312 | $ 969 | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 5,000 | 2,000 | |||||
Common shares outstanding plus shares underlying outstanding stock awards, including all stock-based awards outstanding, including estimated forfeiture | 495 | 495 | 490 | ||||
Net unrecognized compensation cost related to unvested stock-based compensation arrangements | $ 4,500 | $ 4,500 | |||||
Net unrecognized compensation cost related to unvested stock-based compensation arrangements, weighted average recognition period (in years) | 1 year 2 months | ||||||
Fulfillment | |||||||
Stockholders Equity Note [Line Items] | |||||||
Stock-based compensation | 186 | 132 | $ 302 | 222 | |||
Marketing | |||||||
Stockholders Equity Note [Line Items] | |||||||
Stock-based compensation | 80 | 50 | 136 | 84 | |||
Technology and content | |||||||
Stockholders Equity Note [Line Items] | |||||||
Stock-based compensation | 419 | 319 | 737 | 552 | |||
General and administrative | |||||||
Stockholders Equity Note [Line Items] | |||||||
Stock-based compensation | $ 83 | $ 62 | $ 137 | $ 111 |
Stockholders' Equity Restricted
Stockholders' Equity Restricted Stock Unit Activity (Detail) - Restricted Stock Units shares in Millions | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Number of units | |
Beginning balance (in shares) | shares | 18.9 |
Units granted (in shares) | shares | 6.3 |
Units vested (in shares) | shares | (3.1) |
Units forfeited (in shares) | shares | (1.2) |
Ending balance (in shares) | shares | 20.9 |
Weighted Average Grant-Date Fair Value | |
Beginning balance (in usd per share) | $ / shares | $ 362 |
Units granted (in usd per share) | $ / shares | 609 |
Units vested (in usd per share) | $ / shares | 309 |
Units forfeited (in usd per share) | $ / shares | 401 |
Ending balance (in usd per share) | $ / shares | $ 443 |
Stockholders' Equity Scheduled
Stockholders' Equity Scheduled Vesting for Outstanding Restricted Stock Units (Detail) - Restricted Stock Units shares in Millions | Jun. 30, 2016shares |
Schedule of Vesting [Line Items] | |
Six Months Ended December 31, 2016 | 3.1 |
Year Ended December 31, 2017 | 7.1 |
Year Ended December 31, 2018 | 6.9 |
Year Ended December 31, 2019 | 2.7 |
Year Ended December 31, 2020 | 0.8 |
Thereafter | 0.3 |
Total | 20.9 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016EUR (€) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Income Taxes [Line Items] | ||||||||
Provision for income taxes | $ (307) | $ (266) | $ (782) | $ (337) | ||||
Discrete tax expense (benefit) | (70) | 41 | ||||||
Cash taxes paid, net of refunds | 88 | $ 65 | 226 | $ 119 | $ 380 | $ 188 | ||
Tax contingencies | $ 1,600 | $ 1,600 | $ 1,600 | $ 1,200 | ||||
Internal Revenue Service (IRS) | ||||||||
Income Taxes [Line Items] | ||||||||
Description of the status of the tax examination | We are under examination, or may be subject to examination, by the Internal Revenue Service (“IRS”) for the calendar year 2005 and thereafter | We are under examination, or may be subject to examination, by the Internal Revenue Service (“IRS”) for the calendar year 2005 and thereafter | ||||||
Tax examination, estimate of additional tax expense | $ 1,500 | |||||||
France | ||||||||
Income Taxes [Line Items] | ||||||||
Description of the status of the tax examination | Certain of our subsidiaries are under examination or investigation or may be subject to examination or investigation by the French Tax Administration (“FTA”) for calendar year 2006 and thereafter | Certain of our subsidiaries are under examination or investigation or may be subject to examination or investigation by the French Tax Administration (“FTA”) for calendar year 2006 and thereafter | ||||||
Tax examination, estimate of additional tax expense | € | € 196 | |||||||
European Union | ||||||||
Income Taxes [Line Items] | ||||||||
Description of the status of the tax examination | In addition, in October 2014, the European Commission opened a formal investigation to examine whether decisions by the tax authorities in Luxembourg with regard to the corporate income tax paid by certain of our subsidiaries comply with European Union rules on state aid. | In addition, in October 2014, the European Commission opened a formal investigation to examine whether decisions by the tax authorities in Luxembourg with regard to the corporate income tax paid by certain of our subsidiaries comply with European Union rules on state aid. | ||||||
Other Foreign Jurisdictions | ||||||||
Income Taxes [Line Items] | ||||||||
Description of the status of the tax examination | We are also subject to taxation in various states and other foreign jurisdictions including Canada, China, Germany, India, Italy, Japan, Luxembourg, and the United Kingdom. We are under, or may be subject to, audit or examination and additional assessments by the relevant authorities in respect of these particular jurisdictions primarily for 2008 and thereafter. | We are also subject to taxation in various states and other foreign jurisdictions including Canada, China, Germany, India, Italy, Japan, Luxembourg, and the United Kingdom. We are under, or may be subject to, audit or examination and additional assessments by the relevant authorities in respect of these particular jurisdictions primarily for 2008 and thereafter. |
Segment Information Reportable
Segment Information Reportable Segments and Reconciliation to Consolidated Net Income (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Segment | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Segment Reporting Disclosure [Line Items] | ||||||
Number of Reportable Segments | Segment | 3 | |||||
Net sales | $ 30,404 | $ 23,185 | $ 59,532 | $ 45,901 | ||
Operating expenses | 29,119 | 22,721 | 57,176 | 45,182 | ||
Operating income | 1,285 | 464 | 2,356 | 719 | ||
Total non-operating income (expense) | (106) | (102) | (122) | (336) | ||
Provision for income taxes | (307) | (266) | (782) | (337) | ||
Equity-method investment activity, net of tax | (15) | (4) | (82) | (11) | ||
Net income | 857 | 92 | 1,370 | 35 | $ 1,931 | $ (188) |
Operating Segments | ||||||
Segment Reporting Disclosure [Line Items] | ||||||
Net sales | 30,404 | 23,185 | 59,532 | 45,901 | ||
Operating expenses | 28,296 | 22,110 | 55,764 | 44,121 | ||
Operating income before stock-based compensation and other | 2,108 | 1,075 | 3,768 | 1,780 | ||
Stock-based compensation and other | 823 | 611 | 1,412 | 1,061 | ||
North America | Operating Segments | ||||||
Segment Reporting Disclosure [Line Items] | ||||||
Net sales | 17,674 | 13,796 | 34,670 | 27,202 | ||
Operating expenses | 16,517 | 13,093 | 32,590 | 25,982 | ||
Operating income before stock-based compensation and other | 1,157 | 703 | 2,080 | 1,220 | ||
Stock-based compensation and other | 455 | 355 | 790 | 617 | ||
Operating income | 702 | 348 | 1,290 | 603 | ||
International | Operating Segments | ||||||
Segment Reporting Disclosure [Line Items] | ||||||
Net sales | 9,844 | 7,565 | 19,410 | 15,310 | ||
Operating expenses | 9,756 | 7,584 | 19,301 | 15,405 | ||
Operating income before stock-based compensation and other | 88 | (19) | 109 | (95) | ||
Stock-based compensation and other | 223 | 170 | 364 | 288 | ||
Operating income | (135) | (189) | (255) | (383) | ||
AWS | Operating Segments | ||||||
Segment Reporting Disclosure [Line Items] | ||||||
Net sales | 2,886 | 1,824 | 5,452 | 3,389 | ||
Operating expenses | 2,023 | 1,433 | 3,873 | 2,734 | ||
Operating income before stock-based compensation and other | 863 | 391 | 1,579 | 655 | ||
Stock-based compensation and other | 145 | 86 | 258 | 156 | ||
Operating income | $ 718 | $ 305 | $ 1,321 | $ 499 |
Segment Information Net Sales o
Segment Information Net Sales of Similar Products and Services (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Revenue from External Customer [Line Items] | |||||
Net sales | $ 30,404 | $ 23,185 | $ 59,532 | $ 45,901 | |
Media | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 5,211 | 4,714 | 10,899 | 10,002 | |
Electronics and other general merchandise | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 21,963 | 16,412 | 42,507 | 32,041 | |
AWS | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 2,886 | 1,824 | 5,452 | 3,389 | |
Other | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | [1] | $ 344 | $ 235 | $ 674 | $ 469 |
[1] | Includes sales from non-retail activities, such as certain advertising services and our co-branded credit card agreements. |