Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jul. 22, 2020 | Dec. 31, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-Q | ||
Document Quarterly Report | true | ||
Document Period End Date | Jun. 30, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 000-22513 | ||
Entity Registrant Name | AMAZON.COM, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 91-1646860 | ||
Entity Address, Address Line One | 410 Terry Avenue North | ||
Entity Address, City or Town | Seattle, | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98109-5210 | ||
City Area Code | 206 | ||
Local Phone Number | 266-1000 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | AMZN | ||
Security Exchange Name | NASDAQ | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 500,889,651 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | Q2 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Central Index Key | 0001018724 | ||
Lessee, Operating Lease, Liability, to be Paid | $ 36,048 | $ 31,963 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD | $ 27,505 | $ 36,410 | $ 32,173 | $ 22,965 | $ 20,536 | |
OPERATING ACTIVITIES: | ||||||
Net income | 5,243 | $ 2,625 | 7,778 | 6,186 | 13,180 | 12,096 |
Adjustments to reconcile net income to net cash from operating activities: | ||||||
Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other | 5,748 | 5,202 | 11,110 | 10,056 | 22,843 | 18,097 |
Stock-based compensation | 2,601 | 1,971 | 4,358 | 3,245 | 7,977 | 6,012 |
Other operating expense (income), net | 282 | 80 | 348 | 67 | 445 | 200 |
Other expense (income), net | (769) | (7) | (204) | (142) | (310) | 152 |
Deferred income taxes | 465 | 105 | 787 | 520 | 1,063 | 958 |
Changes in operating assets and liabilities: | ||||||
Inventories | (672) | (2,100) | 720 | (1,381) | (1,176) | (3,826) |
Accounts receivable, net and other | (2,854) | (2,193) | (1,592) | (2,594) | (6,680) | (6,873) |
Accounts payable | 8,616 | 3,668 | 573 | (2,716) | 11,482 | 8,060 |
Accrued expenses and other | 1,699 | (623) | (1,063) | (3,556) | 1,110 | (653) |
Unearned revenue | 247 | 390 | 854 | 1,278 | 1,286 | 1,806 |
Net cash provided by (used in) operating activities | 20,606 | 9,118 | 23,669 | 10,963 | 51,220 | 36,029 |
INVESTING ACTIVITIES: | ||||||
Purchases of property and equipment | (7,459) | (3,562) | (14,254) | (6,852) | (24,263) | (13,938) |
Proceeds from property and equipment sales and incentives | 844 | 919 | 2,212 | 1,488 | 4,895 | 2,927 |
Acquisitions, net of cash acquired, and other | (118) | (117) | (210) | (1,285) | (1,385) | (2,592) |
Sales and maturities of marketable securities | 8,138 | 5,161 | 19,764 | 7,804 | 34,641 | 11,706 |
Purchases of marketable securities | (19,209) | (9,950) | (34,210) | (16,827) | (49,196) | (22,919) |
Net cash provided by (used in) investing activities | (17,804) | (7,549) | (26,698) | (15,672) | (35,308) | (24,816) |
FINANCING ACTIVITIES: | ||||||
Proceeds from short-term debt, and other | 2,433 | 222 | 3,050 | 307 | 4,145 | 972 |
Repayments of short-term debt, and other | (1,906) | (73) | (2,537) | (363) | (3,693) | (958) |
Proceeds from long-term debt | 9,918 | 61 | 9,994 | 166 | 10,699 | 347 |
Repayments of long-term debt | (205) | (39) | (241) | (101) | (1,305) | (122) |
Principal repayments of finance leases | (2,817) | (2,327) | (5,417) | (4,541) | (10,504) | (8,693) |
Principal repayments of financing obligations | (15) | (2) | (32) | (3) | (56) | (211) |
Net cash provided by (used in) financing activities | 7,408 | (2,158) | 4,817 | (4,535) | (714) | (8,665) |
Foreign currency effect on cash, cash equivalents, and restricted cash | 127 | 47 | (356) | 36 | (321) | (119) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 10,337 | (542) | 1,432 | (9,208) | 14,877 | 2,429 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | 37,842 | 22,965 | 37,842 | 22,965 | 37,842 | 22,965 |
Supplemental Cash Flow Information [Abstract] | ||||||
Interest Paid On Long-Term Debt | 139 | 147 | 430 | 433 | 872 | 837 |
Operating Lease, Payments | 1,086 | 838 | 2,115 | 1,547 | 3,929 | 1,547 |
Finance Lease, Interest Payment on Liability | 161 | 150 | 329 | 315 | 662 | 536 |
Interest Paid Financing Obligations | 21 | 4 | 43 | 5 | 77 | 105 |
Income Taxes Paid, Net | 486 | 283 | 791 | 451 | 1,221 | 822 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 3,347 | 2,220 | 5,755 | 3,094 | 10,530 | 3,094 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 3,155 | 3,307 | 5,321 | 5,935 | 13,110 | 11,944 |
Property and Equipment Obtained in Exchange for Financing Obligations | $ 482 | $ 283 | $ 861 | $ 719 | $ 1,504 | $ 2,825 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Total net sales | $ 88,912 | $ 63,404 | $ 164,364 | $ 123,104 |
Operating expenses: | ||||
Cost of sales | 52,660 | 36,337 | 96,917 | 70,257 |
Fulfillment | 13,806 | 9,271 | 25,337 | 17,872 |
Marketing | 4,345 | 4,291 | 9,173 | 7,955 |
Technology and content | 10,388 | 9,065 | 19,713 | 16,991 |
General and administrative | 1,580 | 1,270 | 3,032 | 2,444 |
Other operating expense (income), net | 290 | 86 | 360 | 81 |
Total operating expenses | 83,069 | 60,320 | 154,532 | 115,600 |
Operating income | 5,843 | 3,084 | 9,832 | 7,504 |
Interest income | 135 | 215 | 337 | 398 |
Interest expense | (403) | (383) | (805) | (749) |
Other income (expense), net | 646 | (27) | 240 | 138 |
Total non-operating income (expense) | 378 | (195) | (228) | (213) |
Income before income taxes | 6,221 | 2,889 | 9,604 | 7,291 |
Provision for income taxes | 984 | 257 | 1,729 | 1,094 |
Equity-method investment activity, net of tax | 6 | (7) | (97) | (11) |
Net income | $ 5,243 | $ 2,625 | $ 7,778 | $ 6,186 |
Basic earnings per share | $ 10.50 | $ 5.32 | $ 15.59 | $ 12.57 |
Diluted earnings per share | $ 10.30 | $ 5.22 | $ 15.32 | $ 12.31 |
Weighted-average shares used in computation of earnings per share: | ||||
Basic (in shares) | 500 | 493 | 499 | 492 |
Diluted (in shares) | 509 | 503 | 508 | 503 |
Product [Member] | ||||
Total net sales | $ 50,244 | $ 35,856 | $ 92,085 | $ 70,139 |
Service [Member] | ||||
Total net sales | $ 38,668 | $ 27,548 | $ 72,279 | $ 52,965 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,243 | $ 2,625 | $ 7,778 | $ 6,186 |
Net change in foreign currency translation adjustments: | ||||
Foreign currency translation adjustments, net of tax of $(6), $(8), $(8) and $13 | 207 | 7 | (668) | (1) |
Net change in unrealized gains (losses) on available-for-sale debt securities: | ||||
Unrealized gains (losses), net of tax of $(11), $(73), $(11) and $(61) | 407 | 44 | 205 | 76 |
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $0, $0 and $0 | (6) | (1) | (6) | 0 |
Net unrealized gains (losses) on available-for-sale debt securities | 401 | 43 | 199 | 76 |
Total other comprehensive income (loss) | 608 | 50 | (469) | 75 |
Comprehensive income | $ 5,851 | $ 2,675 | $ 7,309 | $ 6,261 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $ (8) | $ (6) | $ 13 | $ (8) |
Unrealized gains (losses), tax | (73) | (11) | (61) | (11) |
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” tax | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 37,466 | $ 36,092 |
Marketable securities | 33,925 | 18,929 |
Inventories | 19,599 | 20,497 |
Accounts receivable, net and other | 19,918 | 20,816 |
Total current assets | 110,908 | 96,334 |
Property and equipment, net | 86,517 | 72,705 |
Operating leases | 28,537 | 25,141 |
Goodwill | 14,751 | 14,754 |
Other assets | 17,601 | 16,314 |
Total assets | 258,314 | 225,248 |
Current liabilities: | ||
Accounts payable | 51,036 | 47,183 |
Accrued expenses and other | 33,863 | 32,439 |
Unearned revenue | 8,997 | 8,190 |
Total current liabilities | 93,896 | 87,812 |
Long-term lease liabilities | 42,798 | 39,791 |
Long-term debt | 33,128 | 23,414 |
Other long-term liabilities | 14,764 | 12,171 |
Commitments and contingencies (Note 4) | ||
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 - 514 and 518 Outstanding shares - 491 and 494 | 5 | 5 |
Treasury stock, at cost | (1,837) | (1,837) |
Additional paid-in capital | 38,017 | 33,658 |
Accumulated other comprehensive income (loss) | (1,455) | (986) |
Retained earnings | 38,998 | 31,220 |
Total stockholders’ equity | 73,728 | 62,060 |
Total liabilities and stockholders’ equity | $ 258,314 | $ 225,248 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
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 | 524,000,000 | 521,000,000 |
Common stock, outstanding shares | 501,000,000 | 498,000,000 |
Accounting Policies and Supplem
Accounting Policies and Supplemental Disclosures | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies and Supplemental Disclosures | ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES 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 cash flows, operating results, and balance sheets for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2020 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 2019 Annual Report on Form 10-K. Prior Period Rec lassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Proceeds from and repayments of short-term debt, and other were reclassified from proceeds from and repayments of long-term debt, and other on our consolidated statements of cash flows. Principles of Consolidation The consolidated financial statements include the accounts of Amazon.com, Inc. and its consolidated entities (collectively, the “Company”), consisting of 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 certain entities that support our seller lending financing activities. 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, income taxes, useful lives of equipment, commitments and contingencies, valuation of acquired intangibles and goodwill, stock-based compensation forfeiture rates, vendor funding, inventory valuation, collectability of receivables, and valuation and impairment of investments. Given the global economic climate and additional or unforeseen effects from the COVID-19 pandemic, these estimates have become more challenging, and actual results could differ materially from these estimates. We review the useful lives of equipment on an ongoing basis, and effective January 1, 2020 we changed our estimate of the useful life for our servers from three to four years. The longer useful life is due to continuous improvements in our hardware, software, and data center designs. The effect of this change in estimate for Q2 2020, based on servers that were included in “Property and equipment, net” as of March 31, 2020 and those acquired during the quarter ended June 30, 2020, was a reduction in depreciation and amortization expense of $696 million and an increase in net income of $534 million, or $1.07 per basic share and $1.05 per diluted share. The effect of this change in estimate for the six months ended June 30, 2020, based on servers that were included in “Property and equipment, net” as of December 31, 2019 and those acquired during the six months ended June 30, 2020, was a reduction in depreciation and amortization expense of $1.5 billion and an increase in net income of $1.1 billion, or $2.27 per basic share and $2.24 per diluted share. Supplemental Cash Flow Information The following table shows supplemental cash flow information (in millions): Three Months Ended Six Months Ended Twelve Months Ended 2019 2020 2019 2020 2019 2020 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on debt $ 147 $ 139 $ 433 $ 430 $ 837 $ 872 Cash paid for operating leases 838 1,086 1,547 2,115 1,547 3,929 Cash paid for interest on finance leases 150 161 315 329 536 662 Cash paid for interest on financing obligations 4 21 5 43 105 77 Cash paid for income taxes, net of refunds 283 486 451 791 822 1,221 Assets acquired under operating leases 2,220 3,347 3,094 5,755 3,094 10,530 Property and equipment acquired under finance leases 3,307 3,155 5,935 5,321 11,944 13,110 Property and equipment acquired under build-to-suit arrangements 283 482 719 861 2,825 1,504 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 2019 2020 2019 2020 Shares used in computation of basic earnings per share 493 500 492 499 Total dilutive effect of outstanding stock awards 10 9 11 9 Shares used in computation of diluted earnings per share 503 509 503 508 Inventories Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out method, and are valued at the lower of cost and net realizable value. This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. The inventory valuation allowance, representing a write-down of inventory, was $1.6 billion and $1.7 billion as of December 31, 2019 and June 30, 2020. Accounts Receivable, Net and Other Included in “Accounts receivable, net and other” on our consolidated balance sheets are amounts primarily related to customers, vendors, and sellers. As of December 31, 2019 and June 30, 2020, customer receivables, net, were $12.6 billion and $12.2 billion, vendor receivables, net, were $4.2 billion and $3.1 billion, and seller receivables, net, were $863 million and $543 million. Seller receivables are amounts due from sellers related to our seller lending program, which provides funding to sellers primarily to procure inventory. We estimate losses on receivables based on expected losses, including our historical experience of actual losses. The allowance for doubtful accounts was $718 million and $1.1 billion as of December 31, 2019 and June 30, 2020. Digital Video and Music Content The total capitalized costs of video, which is primarily released content, and music as of December 31, 2019 and June 30, 2020 were $5.8 billion and $6.1 billion. Total video and music expense was $1.8 billion and $2.8 billion in Q2 2019 and Q2 2020, and $3.5 billion and $5.2 billion for the six months ended June 30, 2019 and 2020. Unearned Revenue Unearned revenue is recorded when payments are received or due in advance of performing our service obligations and is recognized over the service period. Unearned revenue primarily relates to prepayments of AWS services and Amazon Prime memberships. Our total unearned revenue as of December 31, 2019 was $10.2 billion, of which $5.6 billion was recognized as revenue during the six months ended June 30, 2020. Included in “Other long-term liabilities” on our consolidated balance sheets was $2.0 billion of unearned revenue as of December 31, 2019 and June 30, 2020. Additionally, we have performance obligations, primarily related to AWS, associated with commitments in customer contracts for future services that have not yet been recognized in our financial statements. For contracts with original terms that exceed one year, those commitments not yet recognized were $41.0 billion as of June 30, 2020. The weighted average remaining life of our long-term contracts is 3.3 years. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS Cash, Cash Equivalents, Restricted Cash, and Marketable Securities As of December 31, 2019 and June 30, 2020, our cash, cash equivalents, restricted cash, and marketable securities primarily consisted of cash, AAA-rated money market funds, U.S. and foreign government and agency securities, 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 certain marketable equity securities based on quoted prices in active markets for identical assets or liabilities. Other marketable securities 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 significant amounts of cash, cash equivalents, restricted cash, or marketable securities categorized as Level 3 assets as of December 31, 2019 and June 30, 2020. The following table summarizes, by major security type, our cash, cash equivalents, restricted cash, and marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in millions): December 31, 2019 June 30, 2020 Total Cost or Gross Gross Total Cash $ 9,776 $ 9,277 $ — $ — $ 9,277 Level 1 securities: Money market funds 18,850 21,818 — — 21,818 Equity securities (1) 202 407 Level 2 securities: Foreign government and agency securities 4,794 6,324 1 — 6,325 U.S. government and agency securities 7,080 8,087 37 (1) 8,123 Corporate debt securities 11,881 21,785 271 (11) 22,045 Asset-backed securities 2,360 3,277 23 (13) 3,287 Other fixed income securities 394 477 6 — 483 Equity securities (1) 5 4 $ 55,342 $ 71,045 $ 338 $ (25) $ 71,769 Less: Restricted cash, cash equivalents, and marketable securities (2) (321) (378) Total cash, cash equivalents, and marketable securities $ 55,021 $ 71,391 ___________________ (1) The related unrealized gain (loss) recorded in “Other income (expense), net” was $14 million and $235 million in Q2 2019 and Q2 2020, and $82 million and $204 million for the six months ended June 30, 2019 and 2020. (2) We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable securities as collateral for real estate leases, amounts due to third-party sellers in certain jurisdictions, debt, and standby and trade letters of credit. 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 4 — Commitments and Contingencies.” The following table summarizes the remaining contractual maturities of our cash equivalents and marketable fixed income securities as of June 30, 2020 (in millions): Amortized Estimated Due within one year $ 42,733 $ 42,746 Due after one year through five years 15,671 15,956 Due after five years through ten years 654 656 Due after ten years 2,710 2,723 Total $ 61,768 $ 62,081 Actual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions. Equity Warrants and Non-Marketable Equity Investments We hold equity warrants giving us the right to acquire stock of other companies. As of December 31, 2019 and June 30, 2020, these warrants had a fair value of $669 million and $1.0 billion, and are recorded within “Other assets” on our consolidated balance sheets with gains and losses recognized in “Other income (expense), net” on our consolidated statements of operations. These warrants are primarily classified as Level 2 assets. As of December 31, 2019 and June 30, 2020, equity investments not accounted for under the equity-method and without readily determinable fair values, had a carrying value of $1.5 billion, and are recorded within “Other assets” on our consolidated balance sheets with adjustments recognized in “Other income (expense), net” on our consolidated statements of operations. Consolidated Statements of Cash Flows Reconciliation The following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows (in millions): December 31, 2019 June 30, 2020 Cash and cash equivalents $ 36,092 $ 37,466 Restricted cash included in accounts receivable, net and other 276 354 Restricted cash included in other assets 42 22 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 36,410 $ 37,842 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | LEASES Gross assets acquired under finance leases, inclusive of those where title transfers at the end of the lease, are recorded in “Property and equipment, net” and were $57.4 billion and $60.8 billion as of December 31, 2019 and June 30, 2020. Accumulated amortization associated with finance leases was $30.0 billion and $32.1 billion as of December 31, 2019 and June 30, 2020. Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2020 2019 2020 Operating lease cost $ 874 $ 1,149 $ 1,710 $ 2,217 Finance lease cost: Amortization of lease assets 2,402 2,029 4,709 3,923 Interest on lease liabilities 160 156 316 320 Finance lease cost 2,562 2,185 5,025 4,243 Variable lease cost 281 294 531 558 Total lease cost $ 3,717 $ 3,628 $ 7,266 $ 7,018 Other information about lease amounts recognized in our consolidated financial statements is summarized as follows: December 31, 2019 June 30, 2020 Weighted-average remaining lease term – operating leases 11.5 years 11.2 years Weighted-average remaining lease term – finance leases 5.5 years 5.7 years Weighted-average discount rate – operating leases 3.1 % 2.9 % Weighted-average discount rate – finance leases 2.7 % 2.5 % Our lease liabilities were as follows (in millions): December 31, 2019 Operating Leases Finance Leases Total Gross lease liabilities $ 31,963 $ 28,875 $ 60,838 Less: imputed interest (6,128) (1,896) (8,024) Present value of lease liabilities 25,835 26,979 52,814 Less: current portion of lease liabilities (3,139) (9,884) (13,023) Total long-term lease liabilities $ 22,696 $ 17,095 $ 39,791 June 30, 2020 Operating Leases Finance Leases Total Gross lease liabilities $ 36,048 $ 28,787 $ 64,835 Less: imputed interest (6,449) (1,997) (8,446) Present value of lease liabilities 29,599 26,790 56,389 Less: current portion of lease liabilities (3,530) (10,061) (13,591) Total long-term lease liabilities $ 26,069 $ 16,729 $ 42,798 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments We have entered into non-cancellable operating and finance leases and financing obligations for equipment and office, fulfillment, sortation, delivery, data center, physical store, and renewable energy facilities. The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally cancellable, as of June 30, 2020 (in millions): Six Months Ended December 31, Year Ended December 31, 2020 2021 2022 2023 2024 Thereafter Total Long-term debt principal and interest $ 1,605 $ 2,190 $ 2,809 $ 3,271 $ 4,272 $ 38,738 $ 52,885 Operating lease liabilities 2,070 4,313 3,884 3,508 3,193 19,080 36,048 Finance lease liabilities, including interest 5,101 9,227 5,628 2,071 1,136 5,624 28,787 Financing obligations, including interest 71 144 146 149 151 2,447 3,108 Unconditional purchase obligations (1) 1,424 3,990 3,459 3,152 3,031 2,361 17,417 Other commitments (2) (3) 2,113 3,480 2,800 2,156 2,131 21,011 33,691 Total commitments $ 12,384 $ 23,344 $ 18,726 $ 14,307 $ 13,914 $ 89,261 $ 171,936 ___________________ (1) Includes unconditional purchase obligations related to certain products offered in our Whole Foods Market stores and long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets. For those digital media content 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. (2) Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements and lease arrangements prior to the lease commencement date and liabilities associated with digital media content agreements with initial terms greater than one year. (3) Excludes approximately $3.7 billion of accrued tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any. Pledged Assets As of December 31, 2019 and June 30, 2020, we have pledged or otherwise restricted $994 million and $957 million of our cash, cash equivalents, and marketable securities, and certain property and equipment as collateral for real estate leases, amounts due to third-party sellers in certain jurisdictions, debt, and standby and trade letters of credit. Additionally, we have pledged our cash and seller receivables for debt related to our Credit Facility. See “Note 5 — Debt.” Other Contingencies We are subject to claims related to various indirect taxes (such as sales, value added, consumption, service, and similar taxes), including in jurisdictions in which we already collect and remit such taxes. If the relevant taxing authorities were successfully to pursue these claims, we could be subject to significant additional tax liabilities. For example, in June 2017, the State of South Carolina issued an assessment for uncollected sales and use taxes for the period from January 2016 to March 2016, including interest and penalties. South Carolina is alleging that we should have collected sales and use taxes on transactions by our third-party sellers. In September 2019, the South Carolina Administrative Law Court ruled in favor of the Department of Revenue and we have appealed the decision to the state Court of Appeals. We believe the assessment is without merit and intend to defend ourselves vigorously in this matter. If other tax authorities were successfully to seek additional adjustments of a similar nature, we could be subject to significant additional tax liabilities. 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 2019 Annual Report on Form 10-K and in Item 1 of Part I, “Financial Statements — Note 4 — Commitments and Contingencies — Legal Proceedings” of our Quarterly Report on Form 10-Q for the period ended March 31, 2020 as supplemented by the following: Beginning in March 2020, a number of class-action complaints were filed alleging, among other things, price fixing arrangements between Amazon.com, Inc. and third-party sellers in Amazon’s stores, monopolization and attempted monopolization of an alleged market in online retail or other submarkets, and consumer protection and unjust enrichment claims. In March 2020, Frame-Wilson v. Amazon.com, Inc. was filed in the United States District Court for the Western District of Washington. Beginning in April 2020, class action complaints were filed in the Superior Court of Quebec – Division of Montreal, the Ontario Superior Court of Justice, and the Federal Court of Canada against Amazon.com, Inc. and related entities. The complaints allege several distinct purported classes, including consumers who purchased a product through Amazon’s stores and consumers who purchased a product offered by Amazon through another e-commerce retailer. The complaints seek billions of dollars of alleged actual damages, treble damages, punitive damages, and injunctive relief. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters. In addition, we are regularly subject to claims, litigation, and other proceedings, including potential regulatory proceedings, involving patent and other intellectual property matters, taxes, labor and employment, competition and antitrust, privacy and data protection, consumer protection, commercial disputes, goods and services offered by us and by third parties, and other matters. 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. We evaluate, on a regular basis, developments in our legal proceedings and other contingencies that could affect the amount of liability, including amounts in excess of any previous accruals and reasonably possible losses disclosed, and make adjustments and changes to our accruals and disclosures as appropriate. For the matters we disclose that do not include an estimate of the amount of loss or range of losses, such an estimate is not possible or is immaterial, 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. Until the final resolution of such matters, if any of our estimates and assumptions change or prove to have been incorrect, we may experience losses in excess of the amounts recorded, which could have a material effect on our business, consolidated financial position, results of operations, or cash flows. See also “Note 7 — Income Taxes.” |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT As of June 30, 2020, we had $33.2 billion of unsecured senior notes outstanding (the “Notes”), including $10.0 billion issued in June 2020 for general corporate purposes. We also have other long-term debt and borrowings under our credit facility of $1.6 billion and $1.2 billion as of December 31, 2019 and June 30, 2020. Our total long-term debt obligations are as follows (in millions): Maturities (1) Stated Interest Rates Effective Interest Rates December 31, 2019 June 30, 2020 2012 Notes issuance of $3.0 billion 2022 2.50% 2.66% 1,250 1,250 2014 Notes issuance of $6.0 billion 2021 - 2044 3.30% - 4.95% 3.43% - 5.11% 5,000 5,000 2017 Notes issuance of $17.0 billion 2020 - 2057 1.90% - 5.20% 2.16% - 4.33% 17,000 17,000 2020 Notes issuance of $10.0 billion 2023 - 2060 0.40% - 2.70% 0.56% - 2.77% — 10,000 Credit Facility 740 573 Other long-term debt 830 663 Total face value of long-term debt 24,820 34,486 Unamortized discount and issuance costs, net (101) (204) Less current portion of long-term debt (1,305) (1,154) Long-term debt $ 23,414 $ 33,128 ___________________ (1) The weighted average remaining lives of the 2012, 2014, 2017, and 2020 Notes were 2.4 years, 12.3 years, 15.7 years, and 19.2 years as of June 30, 2020. The combined weighted average remaining life of the Notes was 15.8 years as of June 30, 2020. Interest on the Notes is payable semi-annually in arrears. 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 estimated fair value of the Notes was approximately $26.2 billion and $38.2 billion as of December 31, 2019 and June 30, 2020, which is based on quoted prices for our debt as of those dates. In October 2016, we entered into a $500 million secured revolving credit facility with a lender that is secured by certain seller receivables, which we subsequently increased to $740 million and may from time to time increase in the future subject to lender approval (the “Credit Facility”). The Credit Facility is available until October 2022, bears interest at the London interbank offered rate (“LIBOR”) plus 1.40%, and has a commitment fee of 0.50% on the undrawn portion. There were $740 million and $573 million of borrowings outstanding under the Credit Facility as of December 31, 2019 and June 30, 2020, which had a weighted-average interest rate of 3.4% and 3.2%, respectively. As of December 31, 2019 and June 30, 2020, we have pledged $852 million and $672 million of our cash and seller receivables as collateral for debt related to our Credit Facility. The estimated fair value of the Credit Facility, which is based on Level 2 inputs, approximated its carrying value as of December 31, 2019 and June 30, 2020. Other long-term debt, including the current portion, had a weighted-average interest rate of 4.1% and 2.9% as of December 31, 2019 and June 30, 2020. We used the net proceeds from the issuance of this debt primarily to fund certain business operations. The estimated fair value of other long-term debt, which is based on Level 2 inputs, approximated its carrying value as of December 31, 2019 and June 30, 2020. In April 2018, we established a commercial paper program (the “Commercial Paper Program”) under which we may from time to time issue unsecured commercial paper up to a total of $7.0 billion at any time, with individual maturities that may vary but will not exceed 397 days from the date of issue. In June 2020, we increased the size of the Commercial Paper Program to $10.0 billion. There were no borrowings outstanding under the Commercial Paper Program as of December 31, 2019. There were $730 million of borrowings outstanding under the Commercial Paper Program as of June 30, 2020, which are included in “Accrued expenses and other” on our consolidated balance sheets and have a weighted average effective interest rate, including issuance costs, of 0.20%. We use the net proceeds from the issuance of commercial paper for general corporate purposes. In April 2018, in connection with our Commercial Paper Program, we amended and restated our unsecured revolving credit facility (the “Credit Agreement”) with a syndicate of lenders to increase our borrowing capacity thereunder to $7.0 billion. In June 2020, we further amended and restated the Credit Agreement to extend the term to June 2023, and it may be extended for up to three additional one-year terms if approved by the lenders. The interest rate applicable to outstanding balances under the amended and restated Credit Agreement is LIBOR plus 0.50%, with a commitment fee of 0.04% on the |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Stock Repurchase Activity In February 2016, the Board of Directors authorized a program to repurchase up to $5.0 billion of our common stock, with no fixed expiration. There were no repurchases of common stock during the six months ended June 30, 2019 or 2020. Stock Award Activity Common shares outstanding plus shares underlying outstanding stock awards totaled 512 million and 517 million as of December 31, 2019 and June 30, 2020. 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 2019 2020 2019 2020 Cost of sales $ 43 $ 76 $ 67 $ 118 Fulfillment 360 417 594 677 Technology and content 1,077 1,421 1,752 2,382 Marketing 307 456 516 787 General and administrative 184 231 316 394 Total stock-based compensation expense $ 1,971 $ 2,601 $ 3,245 $ 4,358 The following table summarizes our restricted stock unit activity for the six months ended June 30, 2020 (in millions): Number of Units Weighted-Average Outstanding as of December 31, 2019 14.3 $ 1,458 Units granted 5.7 2,063 Units vested (3.1) 1,187 Units forfeited (0.7) 1,493 Outstanding as of June 30, 2020 16.2 1,721 Scheduled vesting for outstanding restricted stock units as of June 30, 2020, is as follows (in millions): Six Months Ended December 31, Year Ended December 31, 2020 2021 2022 2023 2024 Thereafter Total Scheduled vesting—restricted stock units 2.7 5.8 5.1 2.0 0.5 0.1 16.2 As of June 30, 2020, there was $13.1 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 1.1 years. The estimated forfeiture rate as of December 31, 2019 and June 30, 2020 was 27%. Changes in our estimates and assumptions relating to forfeitures may cause us to realize material changes in stock-based compensation expense in the future. Changes in Stockholders’ Equity The following table shows the changes in stockholders’ equity (in millions): Three Months Ended Six Months Ended 2019 2020 2019 2020 Total beginning stockholders’ equity $ 48,410 $ 65,272 $ 43,549 $ 62,060 Beginning and ending common stock 5 5 5 5 Beginning and ending treasury stock (1,837) (1,837) (1,837) (1,837) Beginning additional paid-in capital 28,059 35,412 26,791 33,658 Stock-based compensation and issuance of employee benefit plan stock 1,976 2,605 3,244 4,359 Ending additional paid-in capital 30,035 38,017 30,035 38,017 Beginning accumulated other comprehensive income (loss) (1,010) (2,063) (1,035) (986) Other comprehensive income (loss) 50 608 75 (469) Ending accumulated other comprehensive income (loss) (960) (1,455) (960) (1,455) Beginning retained earnings 23,193 33,755 19,625 31,220 Cumulative effect of changes in accounting principles (1) — — 7 — Net income 2,625 5,243 6,186 7,778 Ending retained earnings 25,818 38,998 25,818 38,998 Total ending stockholders’ equity $ 53,061 $ 73,728 $ 53,061 $ 73,728 ___________________ |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2019 | |
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, intercompany transactions, the applicability of special tax regimes, changes in how we do business, acquisitions, investments, audit-related developments, changes in our stock price, changes in our deferred tax assets and liabilities and their valuation, foreign currency gains (losses), changes in statutes, regulations, case law, and administrative practices, principles, and interpretations related to tax, including changes to the global tax framework, competition, and other laws and accounting rules in various jurisdictions, 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 2020, we estimate that our effective tax rate will be favorably affected by the impact of excess tax benefits from stock-based compensation and the U.S. federal research and development credit and adversely affected by state income taxes and losses incurred in certain foreign jurisdictions for which we may not realize a tax benefit. Losses for which we may not realize a related tax benefit, primarily due to losses of foreign subsidiaries, reduce our pre-tax income without a corresponding reduction in our tax expense, and therefore increase our effective tax rate. We record valuation allowances against the deferred tax assets associated with losses for which we may not realize a related tax benefit. Our income tax provisions for the six months ended June 30, 2019 and 2020 were $1.1 billion and $1.7 billion, which included $706 million and $831 million of net discrete tax benefits primarily attributable to excess tax benefits from stock-based compensation. Cash paid for income taxes, net of refunds was $283 million and $486 million in Q2 2019 and Q2 2020, and $451 million and $791 million for the six months ended June 30, 2019 and 2020. As of December 31, 2019 and June 30, 2020, tax contingencies were approximately $3.9 billion and $3.7 billion. Changes in tax laws, regulations, administrative practices, principles, and interpretations may impact 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 twelve 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 could 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 2007 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. 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. On October 4, 2017, the European Commission announced its decision that determinations by the tax authorities in Luxembourg did not comply with European Union rules on state aid. Based on that decision the European Commission announced an estimated recovery amount of approximately €250 million, plus interest, for the period May 2006 through June 2014, and ordered Luxembourg tax authorities to calculate the actual amount of additional taxes subject to recovery. Luxembourg computed an initial recovery amount, consistent with the European Commission’s decision, that we deposited into escrow in March 2018, subject to adjustment pending conclusion of all appeals. In December 2017, Luxembourg appealed the European Commission’s decision. In May 2018, we appealed. We believe the European Commission’s decision to be without merit and will continue to defend ourselves vigorously in this matter. We are also subject to taxation in various states and other foreign jurisdictions including China, Germany, India, 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 2009 and thereafter. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
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,” “Technology and content,” “Marketing,” 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 costs 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. There are no internal revenue transactions between our reportable segments. These segments reflect the way our chief operating decision maker evaluates the Company’s 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 online and physical stores. This segment includes export sales from these online stores. International The International segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused online stores. This segment includes export sales from these internationally-focused online stores (including export sales from these online stores to customers in the U.S., Mexico, and Canada), but excludes export sales from our North America-focused online stores. AWS The AWS segment consists of amounts earned from global sales of compute, storage, database, and other 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 2019 2020 2019 2020 North America Net sales $ 38,653 $ 55,436 $ 74,465 $ 101,563 Operating expenses 37,089 53,295 70,614 98,111 Operating income $ 1,564 $ 2,141 $ 3,851 $ 3,452 International Net sales $ 16,370 $ 22,668 $ 32,563 $ 41,774 Operating expenses 16,971 22,323 33,253 41,826 Operating income (loss) $ (601) $ 345 $ (690) $ (52) AWS Net sales $ 8,381 $ 10,808 $ 16,076 $ 21,027 Operating expenses 6,260 7,451 11,733 14,595 Operating income $ 2,121 $ 3,357 $ 4,343 $ 6,432 Consolidated Net sales $ 63,404 $ 88,912 $ 123,104 $ 164,364 Operating expenses 60,320 83,069 115,600 154,532 Operating income 3,084 5,843 7,504 9,832 Total non-operating income (expense) (195) 378 (213) (228) Provision for income taxes (257) (984) (1,094) (1,729) Equity-method investment activity, net of tax (7) 6 (11) (97) Net income $ 2,625 $ 5,243 $ 6,186 $ 7,778 Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions): Three Months Ended Six Months Ended 2019 2020 2019 2020 Net Sales: Online stores (1) $ 31,053 $ 45,896 $ 60,552 $ 82,549 Physical stores (2) 4,330 3,774 8,636 8,414 Third-party seller services (3) 11,962 18,195 23,104 32,676 Subscription services (4) 4,676 6,018 9,018 11,574 AWS 8,381 10,808 16,076 21,027 Other (5) 3,002 4,221 5,718 8,124 Consolidated $ 63,404 $ 88,912 $ 123,104 $ 164,364 ____________________________ (1) Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, music, videos, games, and software. These product sales include digital products sold on a transactional basis. Digital product subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.” (2) Includes product sales where our customers physically select items in a store. Sales from customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.” (3) Includes commissions and any related fulfillment and shipping fees, and other third-party seller services. (4) Includes annual and monthly fees associated with Amazon Prime memberships, as well as audiobook, digital video, digital music, e-book, and other non-AWS subscription services. |
Accounting Policies and Suppl_2
Accounting Policies and Supplemental Disclosures (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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 cash flows, operating results, and balance sheets for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2020 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 2019 Annual Report on Form 10-K. |
Prior Period Reclassifications | Prior Period Rec lassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Proceeds from and repayments of short-term debt, and other were reclassified from proceeds from and repayments of long-term debt, and other on our consolidated statements of cash flows. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Amazon.com, Inc. and its consolidated entities (collectively, the “Company”), consisting of 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 certain entities that support our seller lending financing activities. Intercompany balances and transactions between consolidated entities are eliminated. |
Use of Estimates | Use of EstimatesThe 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, income taxes, useful lives of equipment, commitments and contingencies, valuation of acquired intangibles and goodwill, stock-based compensation forfeiture rates, vendor funding, inventory valuation, collectability of receivables, and valuation and impairment of investments. Given the global economic climate and additional or unforeseen effects from the COVID-19 pandemic, these estimates have become more challenging, and actual results could differ materially from these 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. |
Inventories | Inventories Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out method, and are valued at the lower of cost and net realizable value. This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. The inventory valuation allowance, representing a write-down of inventory, was $1.6 billion and $1.7 billion as of December 31, 2019 and June 30, 2020. |
Accounts Receivable, Net and Other | Accounts Receivable, Net and OtherIncluded in “Accounts receivable, net and other” on our consolidated balance sheets are amounts primarily related to customers, vendors, and sellers. As of December 31, 2019 and June 30, 2020, customer receivables, net, were $12.6 billion and $12.2 billion, vendor receivables, net, were $4.2 billion and $3.1 billion, and seller receivables, net, were $863 million and $543 million. Seller receivables are amounts due from sellers related to our seller lending program, which provides funding to sellers primarily to procure inventory. |
Digital Video and Music Content | Digital Video and Music ContentThe total capitalized costs of video, which is primarily released content, and music as of December 31, 2019 and June 30, 2020 were $5.8 billion and $6.1 billion. Total video and music expense was $1.8 billion and $2.8 billion in Q2 2019 and Q2 2020, and $3.5 billion and $5.2 billion for the six months ended June 30, 2019 and 2020. |
Unearned Revenue | Unearned Revenue Unearned revenue is recorded when payments are received or due in advance of performing our service obligations and is recognized over the service period. Unearned revenue primarily relates to prepayments of AWS services and Amazon Prime memberships. Our total unearned revenue as of December 31, 2019 was $10.2 billion, of which $5.6 billion was recognized as revenue during the six months ended June 30, 2020. Included in “Other long-term liabilities” on our consolidated balance sheets was $2.0 billion of unearned revenue as of December 31, 2019 and June 30, 2020. Additionally, we have performance obligations, primarily related to AWS, associated with commitments in customer contracts for future services that have not yet been recognized in our financial statements. For contracts with original terms that exceed one year, those commitments not yet recognized were $41.0 billion as of June 30, 2020. The weighted average remaining life of our long-term contracts is 3.3 years. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term. |
Accounting Policies and Suppl_3
Accounting Policies and Supplemental Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Calculation of Diluted Shares | The following table shows the calculation of diluted shares (in millions): Three Months Ended Six Months Ended 2019 2020 2019 2020 Shares used in computation of basic earnings per share 493 500 492 499 Total dilutive effect of outstanding stock awards 10 9 11 9 Shares used in computation of diluted earnings per share 503 509 503 508 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Fair Value by Major Security Type | The following table summarizes, by major security type, our cash, cash equivalents, restricted cash, and marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in millions): December 31, 2019 June 30, 2020 Total Cost or Gross Gross Total Cash $ 9,776 $ 9,277 $ — $ — $ 9,277 Level 1 securities: Money market funds 18,850 21,818 — — 21,818 Equity securities (1) 202 407 Level 2 securities: Foreign government and agency securities 4,794 6,324 1 — 6,325 U.S. government and agency securities 7,080 8,087 37 (1) 8,123 Corporate debt securities 11,881 21,785 271 (11) 22,045 Asset-backed securities 2,360 3,277 23 (13) 3,287 Other fixed income securities 394 477 6 — 483 Equity securities (1) 5 4 $ 55,342 $ 71,045 $ 338 $ (25) $ 71,769 Less: Restricted cash, cash equivalents, and marketable securities (2) (321) (378) Total cash, cash equivalents, and marketable securities $ 55,021 $ 71,391 ___________________ (1) The related unrealized gain (loss) recorded in “Other income (expense), net” was $14 million and $235 million in Q2 2019 and Q2 2020, and $82 million and $204 million for the six months ended June 30, 2019 and 2020. (2) We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable securities as collateral for real estate leases, amounts due to third-party sellers in certain jurisdictions, debt, and standby and trade letters of credit. 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 4 — Commitments and Contingencies.” |
Investments Classified by Contractual Maturity Date | The following table summarizes the remaining contractual maturities of our cash equivalents and marketable fixed income securities as of June 30, 2020 (in millions): Amortized Estimated Due within one year $ 42,733 $ 42,746 Due after one year through five years 15,671 15,956 Due after five years through ten years 654 656 Due after ten years 2,710 2,723 Total $ 61,768 $ 62,081 Actual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions. |
Reconciliation of cash, cash equivalents, and restricted cash | The following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows (in millions): December 31, 2019 June 30, 2020 Cash and cash equivalents $ 36,092 $ 37,466 Restricted cash included in accounts receivable, net and other 276 354 Restricted cash included in other assets 42 22 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 36,410 $ 37,842 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost | Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2020 2019 2020 Operating lease cost $ 874 $ 1,149 $ 1,710 $ 2,217 Finance lease cost: Amortization of lease assets 2,402 2,029 4,709 3,923 Interest on lease liabilities 160 156 316 320 Finance lease cost 2,562 2,185 5,025 4,243 Variable lease cost 281 294 531 558 Total lease cost $ 3,717 $ 3,628 $ 7,266 $ 7,018 |
Other Operating and Finance Lease Information | Other information about lease amounts recognized in our consolidated financial statements is summarized as follows: December 31, 2019 June 30, 2020 Weighted-average remaining lease term – operating leases 11.5 years 11.2 years Weighted-average remaining lease term – finance leases 5.5 years 5.7 years Weighted-average discount rate – operating leases 3.1 % 2.9 % Weighted-average discount rate – finance leases 2.7 % 2.5 % |
Operating and Finance Lease Liability Reconciliation | Our lease liabilities were as follows (in millions): December 31, 2019 Operating Leases Finance Leases Total Gross lease liabilities $ 31,963 $ 28,875 $ 60,838 Less: imputed interest (6,128) (1,896) (8,024) Present value of lease liabilities 25,835 26,979 52,814 Less: current portion of lease liabilities (3,139) (9,884) (13,023) Total long-term lease liabilities $ 22,696 $ 17,095 $ 39,791 June 30, 2020 Operating Leases Finance Leases Total Gross lease liabilities $ 36,048 $ 28,787 $ 64,835 Less: imputed interest (6,449) (1,997) (8,446) Present value of lease liabilities 29,599 26,790 56,389 Less: current portion of lease liabilities (3,530) (10,061) (13,591) Total long-term lease liabilities $ 26,069 $ 16,729 $ 42,798 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Principal Contractual Commitments, Excluding Open Orders for Purchases | The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally cancellable, as of June 30, 2020 (in millions): Six Months Ended December 31, Year Ended December 31, 2020 2021 2022 2023 2024 Thereafter Total Long-term debt principal and interest $ 1,605 $ 2,190 $ 2,809 $ 3,271 $ 4,272 $ 38,738 $ 52,885 Operating lease liabilities 2,070 4,313 3,884 3,508 3,193 19,080 36,048 Finance lease liabilities, including interest 5,101 9,227 5,628 2,071 1,136 5,624 28,787 Financing obligations, including interest 71 144 146 149 151 2,447 3,108 Unconditional purchase obligations (1) 1,424 3,990 3,459 3,152 3,031 2,361 17,417 Other commitments (2) (3) 2,113 3,480 2,800 2,156 2,131 21,011 33,691 Total commitments $ 12,384 $ 23,344 $ 18,726 $ 14,307 $ 13,914 $ 89,261 $ 171,936 ___________________ (1) Includes unconditional purchase obligations related to certain products offered in our Whole Foods Market stores and long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets. For those digital media content 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. (2) Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements and lease arrangements prior to the lease commencement date and liabilities associated with digital media content agreements with initial terms greater than one year. (3) Excludes approximately $3.7 billion of accrued tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt Obligations | Our total long-term debt obligations are as follows (in millions): Maturities (1) Stated Interest Rates Effective Interest Rates December 31, 2019 June 30, 2020 2012 Notes issuance of $3.0 billion 2022 2.50% 2.66% 1,250 1,250 2014 Notes issuance of $6.0 billion 2021 - 2044 3.30% - 4.95% 3.43% - 5.11% 5,000 5,000 2017 Notes issuance of $17.0 billion 2020 - 2057 1.90% - 5.20% 2.16% - 4.33% 17,000 17,000 2020 Notes issuance of $10.0 billion 2023 - 2060 0.40% - 2.70% 0.56% - 2.77% — 10,000 Credit Facility 740 573 Other long-term debt 830 663 Total face value of long-term debt 24,820 34,486 Unamortized discount and issuance costs, net (101) (204) Less current portion of long-term debt (1,305) (1,154) Long-term debt $ 23,414 $ 33,128 ___________________ (1) The weighted average remaining lives of the 2012, 2014, 2017, and 2020 Notes were 2.4 years, 12.3 years, 15.7 years, and 19.2 years as of June 30, 2020. The combined weighted average remaining life of the Notes was 15.8 years as of June 30, 2020. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stock-Based Compensation Expense | Stock-based compensation expense is as follows (in millions): Three Months Ended Six Months Ended 2019 2020 2019 2020 Cost of sales $ 43 $ 76 $ 67 $ 118 Fulfillment 360 417 594 677 Technology and content 1,077 1,421 1,752 2,382 Marketing 307 456 516 787 General and administrative 184 231 316 394 Total stock-based compensation expense $ 1,971 $ 2,601 $ 3,245 $ 4,358 |
Nonvested Restricted Stock Units Activity | The following table summarizes our restricted stock unit activity for the six months ended June 30, 2020 (in millions): Number of Units Weighted-Average Outstanding as of December 31, 2019 14.3 $ 1,458 Units granted 5.7 2,063 Units vested (3.1) 1,187 Units forfeited (0.7) 1,493 Outstanding as of June 30, 2020 16.2 1,721 |
Scheduled Vesting Restricted Stock Unit Activity | Scheduled vesting for outstanding restricted stock units as of June 30, 2020, is as follows (in millions): Six Months Ended December 31, Year Ended December 31, 2020 2021 2022 2023 2024 Thereafter Total Scheduled vesting—restricted stock units 2.7 5.8 5.1 2.0 0.5 0.1 16.2 |
Changes in Stockholders Equity | The following table shows the changes in stockholders’ equity (in millions): Three Months Ended Six Months Ended 2019 2020 2019 2020 Total beginning stockholders’ equity $ 48,410 $ 65,272 $ 43,549 $ 62,060 Beginning and ending common stock 5 5 5 5 Beginning and ending treasury stock (1,837) (1,837) (1,837) (1,837) Beginning additional paid-in capital 28,059 35,412 26,791 33,658 Stock-based compensation and issuance of employee benefit plan stock 1,976 2,605 3,244 4,359 Ending additional paid-in capital 30,035 38,017 30,035 38,017 Beginning accumulated other comprehensive income (loss) (1,010) (2,063) (1,035) (986) Other comprehensive income (loss) 50 608 75 (469) Ending accumulated other comprehensive income (loss) (960) (1,455) (960) (1,455) Beginning retained earnings 23,193 33,755 19,625 31,220 Cumulative effect of changes in accounting principles (1) — — 7 — Net income 2,625 5,243 6,186 7,778 Ending retained earnings 25,818 38,998 25,818 38,998 Total ending stockholders’ equity $ 53,061 $ 73,728 $ 53,061 $ 73,728 ___________________ |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Information on Reportable Segments and Reconciliation to Consolidated Net Income | Information on reportable segments and reconciliation to consolidated net income is as follows (in millions): Three Months Ended Six Months Ended 2019 2020 2019 2020 North America Net sales $ 38,653 $ 55,436 $ 74,465 $ 101,563 Operating expenses 37,089 53,295 70,614 98,111 Operating income $ 1,564 $ 2,141 $ 3,851 $ 3,452 International Net sales $ 16,370 $ 22,668 $ 32,563 $ 41,774 Operating expenses 16,971 22,323 33,253 41,826 Operating income (loss) $ (601) $ 345 $ (690) $ (52) AWS Net sales $ 8,381 $ 10,808 $ 16,076 $ 21,027 Operating expenses 6,260 7,451 11,733 14,595 Operating income $ 2,121 $ 3,357 $ 4,343 $ 6,432 Consolidated Net sales $ 63,404 $ 88,912 $ 123,104 $ 164,364 Operating expenses 60,320 83,069 115,600 154,532 Operating income 3,084 5,843 7,504 9,832 Total non-operating income (expense) (195) 378 (213) (228) Provision for income taxes (257) (984) (1,094) (1,729) Equity-method investment activity, net of tax (7) 6 (11) (97) Net income $ 2,625 $ 5,243 $ 6,186 $ 7,778 |
Disaggregation of Revenue | Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions): Three Months Ended Six Months Ended 2019 2020 2019 2020 Net Sales: Online stores (1) $ 31,053 $ 45,896 $ 60,552 $ 82,549 Physical stores (2) 4,330 3,774 8,636 8,414 Third-party seller services (3) 11,962 18,195 23,104 32,676 Subscription services (4) 4,676 6,018 9,018 11,574 AWS 8,381 10,808 16,076 21,027 Other (5) 3,002 4,221 5,718 8,124 Consolidated $ 63,404 $ 88,912 $ 123,104 $ 164,364 ____________________________ (1) Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, music, videos, games, and software. These product sales include digital products sold on a transactional basis. Digital product subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.” (2) Includes product sales where our customers physically select items in a store. Sales from customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.” (3) Includes commissions and any related fulfillment and shipping fees, and other third-party seller services. (4) Includes annual and monthly fees associated with Amazon Prime memberships, as well as audiobook, digital video, digital music, e-book, and other non-AWS subscription services. |
Accounting Policies and Suppl_4
Accounting Policies and Supplemental Disclosures - Use of Estimates (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |||||||
Decrease in depreciation and amortization | $ (5,748) | $ (5,202) | $ (11,110) | $ (10,056) | $ (22,843) | $ (18,097) | |
Increase in net income | $ 5,243 | $ 2,625 | $ 7,778 | $ 6,186 | $ 13,180 | $ 12,096 | |
Increase in basic earnings per share | $ 10.50 | $ 5.32 | $ 15.59 | $ 12.57 | |||
Increase in diluted earnings per share | $ 10.30 | $ 5.22 | $ 15.32 | $ 12.31 | |||
Technology equipment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Useful life of equipment | 4 years | 3 years | |||||
Change in equipment useful life | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Decrease in depreciation and amortization | $ 696 | $ 1,500 | |||||
Increase in net income | $ 534 | $ 1,100 | |||||
Increase in basic earnings per share | $ 1.07 | $ 2.27 | |||||
Increase in diluted earnings per share | $ 1.05 | $ 2.24 |
Accounting Policies and Suppl_5
Accounting Policies and Supplemental Disclosures - Calculation of Diluted Shares (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accounting Policies [Abstract] | ||||
Shares used in computation of basic earnings per share | 500 | 493 | 499 | 492 |
Total dilutive effect of outstanding stock awards | 9 | 10 | 9 | 11 |
Shares used in computation of diluted earnings per share | 509 | 503 | 508 | 503 |
Accounting Policies and Suppl_6
Accounting Policies and Supplemental Disclosures - Inventories (Details) - USD ($) $ in Billions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Inventory valuation allowance | $ 1.7 | $ 1.6 |
Accounting Policies and Suppl_7
Accounting Policies and Supplemental Disclosures - Accounts Receivable, Net and Other (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net and other | $ 19,918 | $ 20,816 |
Accounts Receivable, Allowance for Credit Loss, Current | 1,100 | 718 |
Customer Receivables, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net and other | 12,200 | 12,600 |
Vendor Receivables, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net and other | 3,100 | 4,200 |
Seller Receivables, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net and other | $ 543 | $ 863 |
Accounting Policies and Suppl_8
Accounting Policies and Supplemental Disclosures - Video and Music Content (Details) - USD ($) $ in Billions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||||
Video and Music Content, Capitalized Costs | $ 6.1 | $ 6.1 | $ 5.8 | ||
Video and Music Content, Expense | $ 2.8 | $ 1.8 | $ 5.2 | $ 3.5 |
Accounting Policies and Suppl_9
Accounting Policies and Supplemental Disclosures - Unearned Revenue (Details) - USD ($) $ in Billions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Unearned revenue | $ 10.2 | |
Unearned revenue, revenue recognized from beginning balance | $ 5.6 | |
Unearned Revenue, Noncurrent | $ 2 | |
Remaining performance obligation, contracts exceeding one year | $ 41 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, expected timing of satisfaction, weighted average remaining life | 3 years 3 months 18 days |
Financial Instruments - Fair Va
Financial Instruments - Fair Values on Recurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Schedule of Investments [Line Items] | |||||
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 235 | $ 14 | $ 204 | $ 82 | |
Recurring | |||||
Schedule of Investments [Line Items] | |||||
Cash | 9,277 | 9,277 | $ 9,776 | ||
Total Estimated Fair Value | |||||
Cash, cash equivalents and marketable securities | 71,769 | 71,769 | 55,342 | ||
Less: Restricted cash, cash equivalents, and marketable securities | (378) | (378) | (321) | ||
Total cash, cash equivalents, and marketable securities | 71,391 | 71,391 | 55,021 | ||
Cost or Amortized Cost | |||||
Cash, cash equivalents and marketable securities | 71,045 | 71,045 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax | |||||
Debt Securities, Available for Sale, Unrealized Gain | 338 | 338 | |||
Debt Securities, Available for Sale, Unrealized Loss | (25) | (25) | |||
Recurring | Level 1 securities | |||||
Total Estimated Fair Value | |||||
Equity Securities, FV-NI | 407 | 407 | 202 | ||
Recurring | Level 1 securities | Money market funds | |||||
Schedule of Investments [Line Items] | |||||
Money market funds | 21,818 | 21,818 | 18,850 | ||
Recurring | Level 2 securities | |||||
Total Estimated Fair Value | |||||
Equity Securities, FV-NI | 4 | 4 | 5 | ||
Recurring | Level 2 securities | Foreign government and agency securities | |||||
Total Estimated Fair Value | |||||
Debt Securities, Available for Sale, Fair Value | 6,325 | 6,325 | 4,794 | ||
Cost or Amortized Cost | |||||
Debt Securities, Available for Sale, Cost | 6,324 | 6,324 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax | |||||
Debt Securities, Available for Sale, Unrealized Gain | 1 | 1 | |||
Debt Securities, Available for Sale, Unrealized Loss | 0 | 0 | |||
Recurring | Level 2 securities | U.S. government and agency securities | |||||
Total Estimated Fair Value | |||||
Debt Securities, Available for Sale, Fair Value | 8,123 | 8,123 | 7,080 | ||
Cost or Amortized Cost | |||||
Debt Securities, Available for Sale, Cost | 8,087 | 8,087 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax | |||||
Debt Securities, Available for Sale, Unrealized Gain | 37 | 37 | |||
Debt Securities, Available for Sale, Unrealized Loss | (1) | (1) | |||
Recurring | Level 2 securities | Corporate debt securities | |||||
Total Estimated Fair Value | |||||
Debt Securities, Available for Sale, Fair Value | 22,045 | 22,045 | 11,881 | ||
Cost or Amortized Cost | |||||
Debt Securities, Available for Sale, Cost | 21,785 | 21,785 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax | |||||
Debt Securities, Available for Sale, Unrealized Gain | 271 | 271 | |||
Debt Securities, Available for Sale, Unrealized Loss | (11) | (11) | |||
Recurring | Level 2 securities | Asset-backed securities | |||||
Total Estimated Fair Value | |||||
Debt Securities, Available for Sale, Fair Value | 3,287 | 3,287 | 2,360 | ||
Cost or Amortized Cost | |||||
Debt Securities, Available for Sale, Cost | 3,277 | 3,277 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax | |||||
Debt Securities, Available for Sale, Unrealized Gain | 23 | 23 | |||
Debt Securities, Available for Sale, Unrealized Loss | (13) | (13) | |||
Recurring | Level 2 securities | Other fixed income securities | |||||
Total Estimated Fair Value | |||||
Debt Securities, Available for Sale, Fair Value | 483 | 483 | $ 394 | ||
Cost or Amortized Cost | |||||
Debt Securities, Available for Sale, Cost | 477 | 477 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax | |||||
Debt Securities, Available for Sale, Unrealized Gain | 6 | 6 | |||
Debt Securities, Available for Sale, Unrealized Loss | 0 | 0 | |||
Money market funds | Recurring | Level 1 securities | Money market funds | |||||
Schedule of Investments [Line Items] | |||||
Money market funds | $ 21,818 | $ 21,818 |
Financial Instruments - Contrac
Financial Instruments - Contractual Maturities (Details) $ in Millions | Jun. 30, 2020USD ($) |
Amortized Cost | |
Due within one year | $ 42,733 |
Due after one year through five years | 15,671 |
Due after five years through ten years | 654 |
Due after ten years | 2,710 |
Cash Equivalents and Marketable Fixed Income Securities, Cost | 61,768 |
Estimated Fair Value | |
Due within one year | 42,746 |
Due after one year through five years | 15,956 |
Due after five years through ten years | 656 |
Due after ten years | 2,723 |
Cash Equivalents and Marketable Fixed Income Securities, Fair Value | $ 62,081 |
Financial Instruments - Equity
Financial Instruments - Equity Warrant Assets and Non-Marketable Equity Securities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Equity investments without readily determinable fair values | $ 1,500 | $ 1,500 |
Warrant | Level 2 assets | ||
Derivative [Line Items] | ||
Fair value of warrant assets | $ 1,000 | $ 669 |
Financial Instruments - Reconci
Financial Instruments - Reconciliation to Cash Flow (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | |||||||
Cash and cash equivalents | $ 37,466 | $ 36,092 | |||||
Restricted cash included in accounts receivable, net and other | 354 | 276 | |||||
Restricted cash included in other assets | 22 | 42 | |||||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 37,842 | $ 27,505 | $ 36,410 | $ 22,965 | $ 32,173 | $ 20,536 | $ 23,507 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Billions | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Finance Lease, Right-of-Use Asset | $ 60.8 | $ 57.4 |
Finance Lease, Right-of-Use-Asset, Accumulated Amortization | $ 32.1 | $ 30 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Finance Lease, Right-of-Use Asset | $ 60,800 | $ 60,800 | $ 57,400 | ||
Operating lease cost | 1,149 | $ 874 | 2,217 | $ 1,710 | |
Finance lease amortization of lease assets | 2,029 | 2,402 | 3,923 | 4,709 | |
Finance lease interest on lease liabilities | 156 | 160 | 320 | 316 | |
Finance lease cost | 2,185 | 2,562 | 4,243 | 5,025 | |
Variable lease cost | 294 | 281 | 558 | 531 | |
Total lease cost | $ 3,628 | $ 3,717 | $ 7,018 | $ 7,266 |
Leases - Other Operating and Fi
Leases - Other Operating and Finance Lease Information (Details) | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term – operating leases | 11 years 2 months 12 days | 11 years 6 months |
Weighted-average remaining lease term – finance leases | 5 years 8 months 12 days | 5 years 6 months |
Weighted-average discount rate – operating leases | 2.90% | 3.10% |
Weighted-average discount rate – finance leases | 2.50% | 2.70% |
Leases - Operating and Finance
Leases - Operating and Finance Lease Liability Reconciliation (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Gross lease liabilities - operating leases | $ 36,048 | $ 31,963 |
Gross lease liabilities - finance leases | 28,787 | 28,875 |
Gross lease liabilities | 64,835 | 60,838 |
Imputed interest - operating leases | (6,449) | (6,128) |
Imputed interest - finance leases | (1,997) | (1,896) |
Imputed interest | (8,446) | (8,024) |
Present value of operating leases | 29,599 | 25,835 |
Present value of finance leases | 26,790 | 26,979 |
Present value of lease liabilities | 56,389 | 52,814 |
Current portion of operating lease liabilities | (3,530) | (3,139) |
Current portion of finance lease liabilities | (10,061) | (9,884) |
Current portion of lease liabilities | (13,591) | (13,023) |
Total long-term operating lease liabilities | 26,069 | 22,696 |
Total long-term finance lease liabilities | 16,729 | 17,095 |
Total long-term lease liabilities | $ 42,798 | $ 39,791 |
Commitments and Contingencies -
Commitments and Contingencies - Principal Contractual Commitments Excluding Open Orders (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Long-term debt principal and interest | ||
Six Months Ended December 31, 2019 | $ 1,605 | |
Year Ended December 31, 2020 | 2,190 | |
Year Ended December 31, 2021 | 2,809 | |
Year Ended December 31, 2022 | 3,271 | |
Year Ended December 31, 2023 | 4,272 | |
Thereafter | 38,738 | |
Total | 52,885 | |
Operating lease liabilities | ||
Six Months Ended December 31, 2019 | 2,070 | |
Year Ended December 31, 2020 | 4,313 | |
Year Ended December 31, 2021 | 3,884 | |
Year Ended December 31, 2022 | 3,508 | |
Year Ended December 31, 2023 | 3,193 | |
Thereafter | 19,080 | |
Gross lease liabilities - operating leases | 36,048 | $ 31,963 |
Finance lease liabilities, including interest | ||
Six Months Ended December 31, 2019 | 5,101 | |
Year Ended December 31, 2020 | 9,227 | |
Year Ended December 31, 2021 | 5,628 | |
Year Ended December 31, 2022 | 2,071 | |
Year Ended December 31, 2023 | 1,136 | |
Thereafter | 5,624 | |
Gross lease liabilities - finance leases | 28,787 | 28,875 |
Financing obligations, including interest | ||
Six Months Ended December 31, 2019 | 71 | |
Year Ended December 31, 2020 | 144 | |
Year Ended December 31, 2021 | 146 | |
Year Ended December 31, 2022 | 149 | |
Year Ended December 31, 2023 | 151 | |
Thereafter | 2,447 | |
Total | 3,108 | |
Unconditional purchase obligations | ||
Six Months Ended December 31, 2019 | 1,424 | |
Year Ended December 31, 2020 | 3,990 | |
Year Ended December 31, 2021 | 3,459 | |
Year Ended December 31, 2022 | 3,152 | |
Year Ended December 31, 2023 | 3,031 | |
Thereafter | 2,361 | |
Total | 17,417 | |
Other commitments | ||
Six Months Ended December 31, 2019 | 2,113 | |
Year Ended December 31, 2020 | 3,480 | |
Year Ended December 31, 2021 | 2,800 | |
Year Ended December 31, 2022 | 2,156 | |
Year Ended December 31, 2023 | 2,131 | |
Thereafter | 21,011 | |
Total | 33,691 | |
Accrued tax contingencies | 3,700 | $ 3,900 |
Total commitments | ||
Six Months Ended December 31, 2019 | 12,384 | |
Year Ended December 31, 2020 | 23,344 | |
Year Ended December 31, 2021 | 18,726 | |
Year Ended December 31, 2022 | 14,307 | |
Year Ended December 31, 2023 | 13,914 | |
Thereafter | 89,261 | |
Total | $ 171,936 |
Commitments and Contingencies_2
Commitments and Contingencies - Pledged Assets (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Pledged assets | $ 957 | $ 994 |
Debt - Additional Information (
Debt - Additional Information (Details) | 1 Months Ended | 6 Months Ended | |||
Apr. 30, 2018USD ($)extension | Oct. 31, 2016USD ($) | Jun. 30, 2020USD ($) | Jun. 01, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||
Total face value of long-term debt | $ 34,486,000,000 | $ 24,820,000,000 | |||
Commercial Paper | |||||
Debt Instrument [Line Items] | |||||
Credit term | 397 days | ||||
Commercial Paper | 730,000,000 | 0 | |||
Commercial paper, maximum borrowing capacity | $ 7,000,000,000 | 10,000,000,000 | |||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total face value of long-term debt | 33,200,000,000 | $ 10,000,000,000 | |||
Estimated fair value of notes | 38,200,000,000 | 26,200,000,000 | |||
Credit Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Total face value of long-term debt | 573,000,000 | 740,000,000 | |||
Credit Facility | Revolving Credit Facility | October 2016 Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving credit maximum borrowing capacity | $ 500,000,000 | 740,000,000 | |||
Commitment fee percentage | 0.50% | ||||
Borrowings outstanding | $ 573,000,000 | $ 740,000,000 | |||
Weighted average interest rate | 3.20% | 3.40% | |||
Collateral amount | $ 672,000,000 | $ 852,000,000 | |||
Credit Facility | Revolving Credit Facility | October 2016 Revolving Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.40% | ||||
Credit Facility | Revolving Credit Facility | April 2018 Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving credit maximum borrowing capacity | $ 7,000,000,000 | ||||
Line Of Credit Facility, Number Of Extensions | extension | 3 | ||||
Line Of Credit Facility, Additional Term | 1 year | ||||
Commitment fee percentage | 0.04% | ||||
Borrowings outstanding | $ 0 | 0 | |||
Credit Facility | Revolving Credit Facility | April 2018 Revolving Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.50% | ||||
Line of Credit and Other Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Total face value of long-term debt | 1,200,000,000 | 1,600,000,000 | |||
Other long-term debt | |||||
Debt Instrument [Line Items] | |||||
Total face value of long-term debt | $ 663,000,000 | $ 830,000,000 | |||
Weighted average interest rate | 2.90% | 4.10% |
Debt - Long-Term Debt Obligatio
Debt - Long-Term Debt Obligations (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 01, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Total face value of long-term debt | $ 34,486,000,000 | $ 24,820,000,000 | |
Less current portion of long-term debt | (1,154,000,000) | (1,305,000,000) | |
Long-term debt | 33,128,000,000 | 23,414,000,000 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Total face value of long-term debt | 33,200,000,000 | $ 10,000,000,000 | |
Unamortized discount and issuance costs, net | $ (204,000,000) | (101,000,000) | |
Weighted average remaining lives term | 15 years 9 months 18 days | ||
Senior Notes | 2012 Notes issuance of $3.0 billion | |||
Debt Instrument [Line Items] | |||
Issuance Amount | $ 3,000,000,000 | ||
Stated Interest Rates | 2.50% | ||
Effective Interest Rates | 2.66% | ||
Total face value of long-term debt | $ 1,250,000,000 | 1,250,000,000 | |
Weighted average remaining lives term | 2 years 4 months 24 days | ||
Senior Notes | 2014 Notes issuance of $6.0 billion | |||
Debt Instrument [Line Items] | |||
Issuance Amount | $ 6,000,000,000 | ||
Total face value of long-term debt | $ 5,000,000,000 | 5,000,000,000 | |
Weighted average remaining lives term | 12 years 3 months 18 days | ||
Senior Notes | 2014 Notes issuance of $6.0 billion | Minimum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rates | 3.30% | ||
Effective Interest Rates | 3.43% | ||
Senior Notes | 2014 Notes issuance of $6.0 billion | Maximum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rates | 4.95% | ||
Effective Interest Rates | 5.11% | ||
Senior Notes | 2017 Notes issuance of $17.0 billion | |||
Debt Instrument [Line Items] | |||
Issuance Amount | $ 17,000,000,000 | ||
Total face value of long-term debt | $ 17,000,000,000 | 17,000,000,000 | |
Weighted average remaining lives term | 15 years 8 months 12 days | ||
Senior Notes | 2017 Notes issuance of $17.0 billion | Minimum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rates | 1.90% | ||
Effective Interest Rates | 2.16% | ||
Senior Notes | 2017 Notes issuance of $17.0 billion | Maximum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rates | 5.20% | ||
Effective Interest Rates | 4.33% | ||
Senior Notes | 2020 Notes issuance of $10.0 billion | |||
Debt Instrument [Line Items] | |||
Issuance Amount | $ 10,000,000,000 | ||
Total face value of long-term debt | $ 10,000,000,000 | 0 | |
Weighted average remaining lives term | 19 years 2 months 12 days | ||
Senior Notes | 2020 Notes issuance of $10.0 billion | Minimum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rates | 0.40% | ||
Effective Interest Rates | 0.56% | ||
Senior Notes | 2020 Notes issuance of $10.0 billion | Maximum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rates | 2.70% | ||
Effective Interest Rates | 2.77% | ||
Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total face value of long-term debt | $ 573,000,000 | 740,000,000 | |
Other long-term debt | |||
Debt Instrument [Line Items] | |||
Total face value of long-term debt | $ 663,000,000 | $ 830,000,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) shares in Millions | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Feb. 29, 2016 | |
Class of Stock [Line Items] | ||||
Common shares outstanding plus underlying outstanding stock awards | 517 | 512 | ||
Net unrecognized compensation cost related to unvested stock-based compensation arrangements | $ 13,100,000,000 | |||
Compensation cost expected to be expensed in next twelve months, percentage | 50.00% | |||
Net unrecognized compensation cost related to unvested stock-based compensation arrangements, weighted average recognition period (in years) | 1 year 1 month 6 days | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions, Forfeiture Rate | 27.00% | 27.00% | ||
February 2016 Program | ||||
Class of Stock [Line Items] | ||||
Stock repurchase, authorized amount | $ 5,000,000,000 | |||
Stock Repurchased During Period, Value | $ 0 | $ 0 |
Stockholders' Equity - Stock-ba
Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions, Forfeiture Rate | 27.00% | 27.00% | 27.00% | ||
Total stock-based compensation expense | $ 2,601 | $ 1,971 | $ 4,358 | $ 3,245 | |
Cost of sales | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Total stock-based compensation expense | 76 | 43 | 118 | 67 | |
Fulfillment | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Total stock-based compensation expense | 417 | 360 | 677 | 594 | |
Technology and content | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Total stock-based compensation expense | 1,421 | 1,077 | 2,382 | 1,752 | |
Marketing | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Total stock-based compensation expense | 456 | 307 | 787 | 516 | |
General and administrative | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Total stock-based compensation expense | $ 231 | $ 184 | $ 394 | $ 316 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Millions | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Number of Units | |
Beginning balance (in shares) | shares | 14.3 |
Units granted (in shares) | shares | 5.7 |
Units vested (in shares) | shares | (3.1) |
Units forfeited (in shares) | shares | (0.7) |
Ending balance (in shares) | shares | 16.2 |
Weighted-Average Grant-Date Fair Value | |
Outstanding as of December 31, 2019 | $ / shares | $ 1,458 |
Units granted | $ / shares | 2,063 |
Units vested | $ / shares | 1,187 |
Units forfeited | $ / shares | 1,493 |
Outstanding as of June 30, 2020 | $ / shares | $ 1,721 |
Stockholders' Equity - Schedule
Stockholders' Equity - Scheduled Vesting for Outstanding Restricted Stock Units (Details) - Restricted Stock Units - shares shares in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Six Months Ended December 31, 2019 | 2.7 | |
Year Ended December 31, 2020 | 5.8 | |
Year Ended December 31, 2021 | 5.1 | |
Year Ended December 31, 2022 | 2 | |
Year Ended December 31, 2023 | 0.5 | |
Thereafter | 0.1 | |
Total | 16.2 | 14.3 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Stockholders Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Stockholders' equity | $ 73,728 | $ 53,061 | $ 73,728 | $ 53,061 | $ 73,728 | $ 53,061 | $ 65,272 | $ 62,060 | $ 48,410 | $ 43,549 |
Other comprehensive income (loss) | 608 | 50 | (469) | 75 | ||||||
Net Income | 5,243 | 2,625 | 7,778 | 6,186 | 13,180 | 12,096 | ||||
Common stock | ||||||||||
Stockholders' equity | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | ||
Treasury stock | ||||||||||
Stockholders' equity | (1,837) | (1,837) | (1,837) | (1,837) | (1,837) | (1,837) | (1,837) | (1,837) | ||
Additional paid-in capital | ||||||||||
Stockholders' equity | 38,017 | 30,035 | 38,017 | 30,035 | 38,017 | 30,035 | 35,412 | 33,658 | 28,059 | 26,791 |
Stock-based compensation and issuance of employee benefit plan stock | 2,605 | 1,976 | 4,359 | 3,244 | ||||||
Accumulated other comprehensive income (loss) | ||||||||||
Stockholders' equity | (1,455) | (960) | (1,455) | (960) | (1,455) | (960) | (2,063) | (986) | (1,010) | (1,035) |
Other comprehensive income (loss) | 608 | 50 | (469) | 75 | ||||||
Retained earnings | ||||||||||
Stockholders' equity | 38,998 | 25,818 | 38,998 | 25,818 | $ 38,998 | $ 25,818 | $ 33,755 | 31,220 | $ 23,193 | 19,625 |
Net Income | $ 5,243 | $ 2,625 | $ 7,778 | $ 6,186 | ||||||
Retained earnings | Revision of Prior Period, Adjustment | ||||||||||
Stockholders' equity | $ 0 | $ 7 |
Income Taxes - Income Taxes (De
Income Taxes - Income Taxes (Details) € in Millions, $ in Millions | Oct. 04, 2017EUR (€) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
Income Tax Disclosure [Abstract] | ||||||||
Provision for income taxes | $ 984 | $ 257 | $ 1,729 | $ 1,094 | ||||
Discrete tax benefits | 831 | 706 | ||||||
Cash paid for income taxes, net of refunds | 486 | 283 | 791 | 451 | $ 1,221 | $ 822 | ||
Tax contingencies | 3,700 | 3,700 | 3,700 | $ 3,900 | ||||
Income Tax Examination [Line Items] | ||||||||
Income Taxes Paid, Net | $ 486 | $ 283 | $ 791 | $ 451 | $ 1,221 | $ 822 | ||
Luxembourg Tax Administration [Member] | Foreign Tax Authority [Member] | ||||||||
Income Tax Examination [Line Items] | ||||||||
Tax examination, estimate of additional tax expense | € | € 250 |
Segment Information - Reportabl
Segment Information - Reportable Segments and Reconciliation to Consolidated Net Income (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | |
Segment Reporting [Abstract] | ||||||
Number of operating segments | segment | 3 | |||||
Segment Reporting Disclosure [Line Items] | ||||||
Net sales | $ 88,912 | $ 63,404 | $ 164,364 | $ 123,104 | ||
Operating expenses | 83,069 | 60,320 | 154,532 | 115,600 | ||
Operating income (loss) | 5,843 | 3,084 | 9,832 | 7,504 | ||
Total non-operating income (expense) | 378 | (195) | (228) | (213) | ||
Provision for income taxes | (984) | (257) | (1,729) | (1,094) | ||
Equity-method investment activity, net of tax | 6 | (7) | (97) | (11) | ||
Net income | 5,243 | 2,625 | 7,778 | 6,186 | $ 13,180 | $ 12,096 |
North America | ||||||
Segment Reporting Disclosure [Line Items] | ||||||
Net sales | 55,436 | 38,653 | 101,563 | 74,465 | ||
Operating expenses | 53,295 | 37,089 | 98,111 | 70,614 | ||
Operating income (loss) | 2,141 | 1,564 | 3,452 | 3,851 | ||
International | ||||||
Segment Reporting Disclosure [Line Items] | ||||||
Net sales | 22,668 | 16,370 | 41,774 | 32,563 | ||
Operating expenses | 22,323 | 16,971 | 41,826 | 33,253 | ||
Operating income (loss) | 345 | (601) | (52) | (690) | ||
AWS | ||||||
Segment Reporting Disclosure [Line Items] | ||||||
Net sales | 10,808 | 8,381 | 21,027 | 16,076 | ||
Operating expenses | 7,451 | 6,260 | 14,595 | 11,733 | ||
Operating income (loss) | $ 3,357 | $ 2,121 | $ 6,432 | $ 4,343 |
Segment Information - Disaggreg
Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 88,912 | $ 63,404 | $ 164,364 | $ 123,104 |
Online stores | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 45,896 | 31,053 | 82,549 | 60,552 |
Physical stores | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 3,774 | 4,330 | 8,414 | 8,636 |
Third-party seller services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 18,195 | 11,962 | 32,676 | 23,104 |
Subscription services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 6,018 | 4,676 | 11,574 | 9,018 |
AWS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 10,808 | 8,381 | 21,027 | 16,076 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 4,221 | $ 3,002 | $ 8,124 | $ 5,718 |