AMAZON COM INC, 10-K filed on 2/3/2021
Annual Report
v3.20.4
Cover Page - USD ($)
 12 Months Ended
Dec. 31, 2020
Jan. 20, 2021
Jun. 30, 2020
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2020    
Current Fiscal Year End Date --12-31    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 1,174,367,787,295
Entity Common Stock, Shares Outstanding   503,564,743  
Documents Incorporated by Reference The information required by Part III of this Report, to the extent not set forth herein, is incorporated herein by reference from the registrant’s definitive proxy statement relating to the Annual Meeting of Shareholders to be held in 2021, which definitive proxy statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Report relates.    
Amendment Flag false    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001018724    
v3.20.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement of Cash Flows [Abstract]      
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $ 36,410 $ 32,173 $ 21,856
OPERATING ACTIVITIES:      
Net income 21,331 11,588 10,073
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 25,251 21,789 15,341
Stock-based compensation 9,208 6,864 5,418
Other operating expense (income), net (71) 164 274
Other expense (income), net (2,582) (249) 219
Deferred income taxes (554) 796 441
Changes in operating assets and liabilities:      
Inventories (2,849) (3,278) (1,314)
Accounts receivable, net and other (8,169) (7,681) (4,615)
Accounts payable 17,480 8,193 3,263
Accrued expenses and other 5,754 (1,383) 472
Unearned revenue 1,265 1,711 1,151
Net cash provided by (used in) operating activities 66,064 38,514 30,723
INVESTING ACTIVITIES:      
Purchases of property and equipment (40,140) (16,861) (13,427)
Proceeds from property and equipment sales and incentives 5,096 4,172 2,104
Acquisitions, net of cash acquired, and other (2,325) (2,461) (2,186)
Sales and maturities of marketable securities 50,237 22,681 8,240
Purchases of marketable securities (72,479) (31,812) (7,100)
Net cash provided by (used in) investing activities (59,611) (24,281) (12,369)
FINANCING ACTIVITIES:      
Proceeds from short-term debt, and other 6,796 1,402 886
Repayments of short-term debt, and other (6,177) (1,518) (813)
Proceeds from long-term debt 10,525 871 182
Repayments of long-term debt (1,553) (1,166) (155)
Principal repayments of finance leases (10,642) (9,628) (7,449)
Principal repayments of financing obligations (53) (27) (337)
Net cash provided by (used in) financing activities (1,104) (10,066) (7,686)
Foreign currency effect on cash, cash equivalents, and restricted cash 618 70 (351)
Net increase (decrease) in cash, cash equivalents, and restricted cash 5,967 4,237 10,317
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $ 42,377 $ 36,410 $ 32,173
v3.20.4
Consolidated Statements Of Operations - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Total net sales $ 386,064 $ 280,522 $ 232,887
Operating expenses:      
Cost of sales 233,307 165,536 139,156
Fulfillment 58,517 40,232 34,027
Technology and content 42,740 35,931 28,837
Marketing 22,008 18,878 13,814
General and administrative 6,668 5,203 4,336
Other operating expense (income), net (75) 201 296
Total operating expenses 363,165 265,981 220,466
Operating income 22,899 14,541 12,421
Interest income 555 832 440
Interest expense (1,647) (1,600) (1,417)
Other income (expense), net 2,371 203 (183)
Total non-operating income (expense) 1,279 (565) (1,160)
Income before income taxes 24,178 13,976 11,261
Provision for income taxes (2,863) (2,374) (1,197)
Equity-method investment activity, net of tax 16 (14) 9
Net income $ 21,331 $ 11,588 $ 10,073
Basic earnings per share (in dollars per share) $ 42.64 $ 23.46 $ 20.68
Diluted earnings per share (in dollars per share) $ 41.83 $ 23.01 $ 20.14
Weighted-average shares used in computation of earnings per share:      
Basic (in shares) 500 494 487
Diluted (in shares) 510 504 500
Net product sales      
Total net sales $ 215,915 $ 160,408 $ 141,915
Net service sales      
Total net sales $ 170,149 $ 120,114 $ 90,972
v3.20.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement of Comprehensive Income [Abstract]      
Net income $ 21,331 $ 11,588 $ 10,073
Net change in foreign currency translation adjustments:      
Foreign currency translation adjustments, net of tax of $6, $(5), and $(36) 561 78 (538)
Reclassification adjustment for foreign currency translation included in “Other operating expense (income), net,” net of tax of $0, $29, and $0 0 (108) 0
Net foreign currency translation adjustments 561 (30) (538)
Net change in unrealized gains (losses) on available-for-sale debt securities:      
Unrealized gains (losses), net of tax of $0, $(12), and $(83) 273 83 (17)
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $0, and $8 (28) (4) 8
Net unrealized gains (losses) on available-for-sale debt securities 245 79 (9)
Total other comprehensive income (loss) 806 49 (547)
Comprehensive income $ 22,137 $ 11,637 $ 9,526
v3.20.4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement of Comprehensive Income [Abstract]      
Foreign currency translation adjustments, tax $ (36) $ (5) $ 6
Reclassification adjustment for foreign currency translation included in "Other operating expense (income), net," tax 0 29 0
Unrealized gains (losses), tax (83) (12) 0
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” tax $ 8 $ 0 $ 0
v3.20.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Current assets:    
Cash and cash equivalents $ 42,122 $ 36,092
Marketable securities 42,274 18,929
Inventories 23,795 20,497
Accounts receivable, net and other 24,542 20,816
Total current assets 132,733 96,334
Property and equipment, net 113,114 72,705
Operating leases 37,553 25,141
Goodwill 15,017 14,754
Other assets 22,778 16,314
Total assets 321,195 225,248
Current liabilities:    
Accounts payable 72,539 47,183
Accrued expenses and other 44,138 32,439
Unearned revenue 9,708 8,190
Total current liabilities 126,385 87,812
Long-term lease liabilities 52,573 39,791
Long-term debt 31,816 23,414
Other long-term liabilities 17,017 12,171
Commitments and contingencies (Note 7)
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 - 521 and 527 Outstanding shares - 498 and 503 5 5
Treasury stock, at cost (1,837) (1,837)
Additional paid-in capital 42,865 33,658
Accumulated other comprehensive income (loss) (180) (986)
Retained earnings 52,551 31,220
Total stockholders’ equity 93,404 62,060
Total liabilities and stockholders’ equity $ 321,195 $ 225,248
v3.20.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2020
Dec. 31, 2019
Statement of Financial Position [Abstract]    
Preferred stock, par value (in usd per share) $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 500,000,000 500,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Common stock, par value (in usd per share) $ 0.01 $ 0.01
Common stock, authorized (in shares) 5,000,000,000 5,000,000,000
Common stock, issued (in shares) 527,000,000 521,000,000
Common stock, outstanding (in shares) 503,000,000 498,000,000
v3.20.4
Consolidated Statements of Stockholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Treasury Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
Cumulative Effect, Period of Adoption, Adjustment
Retained Earnings
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
Beginning Balance (in shares) at Dec. 31, 2017     484            
Beginning Balance at Dec. 31, 2017 $ 27,709 $ 912 $ 5 $ (1,837) $ 21,389 $ (484) $ (4) $ 8,636 $ 916
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income 10,073             10,073  
Other comprehensive income (loss) (547)         (547)      
Exercise of common stock options (in shares)     7            
Stock-based compensation and issuance of employee benefit plan stock 5,402       5,402        
Ending Balance (in shares) at Dec. 31, 2018     491            
Ending Balance at Dec. 31, 2018 43,549 $ 7 $ 5 (1,837) 26,791 (1,035)   19,625 $ 7
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income 11,588             11,588  
Other comprehensive income (loss) 49         49      
Exercise of common stock options (in shares)     7            
Stock-based compensation and issuance of employee benefit plan stock 6,867       6,867        
Ending Balance (in shares) at Dec. 31, 2019     498            
Ending Balance at Dec. 31, 2019 62,060   $ 5 (1,837) 33,658 (986)   31,220  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income 21,331             21,331  
Other comprehensive income (loss) 806         806      
Exercise of common stock options (in shares)     5            
Stock-based compensation and issuance of employee benefit plan stock 9,207       9,207        
Ending Balance (in shares) at Dec. 31, 2020     503            
Ending Balance at Dec. 31, 2020 $ 93,404   $ 5 $ (1,837) $ 42,865 $ (180)   $ 52,551  
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures
 12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Description of Business, Accounting Policies, and Supplemental Disclosures DESCRIPTION OF BUSINESS, ACCOUNTING POLICIES, AND SUPPLEMENTAL DISCLOSURES
Description of Business
We seek to be Earth’s most customer-centric company. In each of our segments, we serve our primary customer sets, consisting of consumers, sellers, developers, enterprises, and content creators. We serve consumers through our online and physical stores and focus on selection, price, and convenience. We offer programs that enable sellers to grow their businesses, sell their products in our stores, and fulfill orders through us, and programs that allow authors, musicians, filmmakers, skill and app developers, and others to publish and sell content. We serve developers and enterprises of all sizes through AWS, which offers a broad set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services. We also manufacture and sell electronic devices. In addition, we provide services, such as advertising to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.
We have organized our operations into three segments: North America, International, and AWS. See “Note 10 — Segment Information.”
Prior Period Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation. “Proceeds from short-term debt, and other” were reclassified from “Proceeds from long-term debt and other” and “Repayments of short-term debt, and other” were reclassified from “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 years 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 the year ended December 31, 2020, based on servers that were included in “Property and equipment, net” as of December 31, 2019 and those acquired during the year ended December 31, 2020, was a reduction in depreciation and amortization expense of $2.7 billion and an increase in net income of $2.0 billion, or $4.06 per basic share and $3.98 per diluted share.
Supplemental Cash Flow Information
The following table shows supplemental cash flow information (in millions):
Year Ended December 31,
201820192020
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt$854 $875 $916 
Cash paid for operating leases$— $3,361 $4,475 
Cash paid for interest on finance leases$381 $647 $612 
Cash paid for interest on financing obligations$194 $39 $102 
Cash paid for income taxes, net of refunds$1,184 $881 $1,713 
Assets acquired under operating leases$— $7,870 $16,217 
Property and equipment acquired under finance leases$10,615 $13,723 $11,588 
Property and equipment acquired under build-to-suit arrangements$3,641 $1,362 $2,267 

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):
  
Year Ended December 31,
 201820192020
Shares used in computation of basic earnings per share487 494 500 
Total dilutive effect of outstanding stock awards13 10 10 
Shares used in computation of diluted earnings per share500 504 510 
Revenue
Revenue is measured based on the amount of consideration that we expect to receive, reduced by estimates for return allowances, promotional discounts, and rebates. Revenue also excludes any amounts collected on behalf of third parties, including sales and indirect taxes. In arrangements where we have multiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price. We generally determine stand-alone selling prices based on the prices charged to customers or using expected cost plus a margin.
A description of our principal revenue generating activities is as follows:
Retail sales - We offer consumer products through our online and physical stores. Revenue is recognized when control of the goods is transferred to the customer, which generally occurs upon our delivery to a third-party carrier or, in the case of an Amazon delivery, to the customer.
Third-party seller services - We offer programs that enable sellers to sell their products in our stores, and fulfill orders through us. We are not the seller of record in these transactions. The commissions and any related fulfillment and shipping fees we earn from these arrangements are recognized when the services are rendered, which generally occurs upon delivery of the related products to a third-party carrier or, in the case of an Amazon delivery, to the customer.
Subscription services - Our subscription sales include fees associated with Amazon Prime memberships and access to content including digital video, audiobooks, digital music, e-books, and other non-AWS subscription services. Prime memberships provide our customers with access to an evolving suite of benefits that represent a single stand-ready obligation. Subscriptions are paid for at the time of or in advance of delivering the services. Revenue from such arrangements is recognized over the subscription period.
AWS - Our AWS arrangements include global sales of compute, storage, database, and other services. Revenue is allocated to services using stand-alone selling prices and is primarily recognized when the customer uses these services, based on the quantity of services rendered, such as compute or storage capacity delivered on-demand. Certain services, including compute and database, are also offered as a fixed quantity over a specified term, for which revenue is recognized ratably. Sales commissions we pay in connection with contracts that exceed one year are capitalized and amortized over the contract term.
Other - Other revenue primarily includes sales of advertising services, which are recognized as ads are delivered based on the number of clicks or impressions.
Return Allowances
Return allowances, which reduce revenue and cost of sales, are estimated using historical experience. Liabilities for return allowances are included in “Accrued expenses and other” and were $623 million, $712 million, and $859 million as of December 31, 2018, 2019, and 2020. Additions to the allowance were $2.3 billion, $2.5 billion, and $3.5 billion and deductions from the allowance were $2.3 billion, $2.5 billion, and $3.6 billion in 2018, 2019, and 2020. Included in “Inventories” on our consolidated balance sheets are assets totaling $519 million, $629 million, and $852 million as of December 31, 2018, 2019, and 2020, for the rights to recover products from customers associated with our liabilities for return allowances.
Cost of Sales
Cost of sales primarily consists of the purchase price of consumer products, inbound and outbound shipping costs, including costs related to sortation and delivery centers and where we are the transportation service provider, and digital media content costs where we record revenue gross, including video and music. Shipping costs to receive products from our suppliers are included in our inventory, and recognized as cost of sales upon sale of products to our customers. Payment processing and related transaction costs, including those associated with seller transactions, are classified in “Fulfillment” on our consolidated statements of operations.
Vendor Agreements
We have agreements with our vendors to receive consideration primarily for cooperative marketing efforts, promotions, incentives, and volume rebates. We generally consider these amounts received from vendors to be a reduction of the prices we pay for their goods, including property and equipment, or services, and are recorded as a reduction of the cost of inventory, cost of services, or cost of property and equipment. Volume rebates typically depend on reaching minimum purchase thresholds. We evaluate the likelihood of reaching purchase thresholds using past experience and current year forecasts. When volume rebates can be reasonably estimated, we record a portion of the rebate as we make progress towards the purchase threshold.
Fulfillment
Fulfillment costs primarily consist of those costs incurred in operating and staffing our North America and International segments’ fulfillment centers, physical stores, and customer service centers, including costs attributable to buying, receiving, inspecting, and warehousing inventories; picking, packaging, and preparing customer orders for shipment; payment processing and related transaction costs, including costs associated with our guarantee for certain seller transactions; responding to inquiries from customers; and supply chain management for our manufactured electronic devices. Fulfillment costs also include amounts paid to third parties that assist us in fulfillment and customer service operations.
Technology and Content
Technology and content costs include payroll and related expenses for employees involved in the research and development of new and existing products and services, development, design, and maintenance of our stores, curation and display of products and services made available in our online stores, and infrastructure costs. Infrastructure costs include servers, networking equipment, and data center related depreciation and amortization, rent, utilities, and other expenses necessary to support AWS and other Amazon businesses. Collectively, these costs reflect the investments we make in order to offer a wide variety of products and services to our customers. Technology and content costs are generally expensed as incurred.
Marketing
Marketing costs primarily consist of advertising and payroll and related expenses for personnel engaged in marketing and selling activities, including sales commissions related to AWS. We pay commissions to third parties when their customer referrals result in sales. We also participate in cooperative advertising arrangements with certain of our vendors, and other third parties.
Advertising and other promotional costs to market our products and services are expensed as incurred and were $8.2 billion, $11.0 billion, and $10.9 billion in 2018, 2019, and 2020.
General and Administrative
General and administrative expenses primarily consist of costs for corporate functions, including payroll and related expenses; facilities and equipment expenses, such as depreciation and amortization expense and rent; and professional fees and litigation costs.
Stock-Based Compensation
Compensation cost for all equity-classified stock awards expected to vest is measured at fair value on the date of grant and recognized over the service period. The fair value of restricted stock units is determined based on the number of shares granted and the quoted price of our common stock. Such value is recognized as expense over the service period, net of estimated forfeitures, using the accelerated method. The estimated number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. We consider many factors when estimating expected forfeitures, including historical forfeiture experience and employee level. Additionally, stock-based compensation includes stock appreciation rights that are expected to settle in cash. These liability-classified awards are remeasured to fair value at the end of each reporting period until settlement or expiration.
Other Operating Expense (Income), Net
Other operating expense (income), net, consists primarily of a benefit from accelerated vesting of warrants to acquire equity of a vendor in Q4 2020, offset by a lease impairment in Q2 2020 and the amortization of intangible assets.
Other Income (Expense), Net
Other income (expense), net, consists primarily of valuations and adjustments of equity securities of $145 million, $231 million, and $833 million in 2018, 2019, and 2020, equity warrant valuation gains (losses) of $(131) million, $11 million, and $1.5 billion in 2018, 2019, and 2020, and foreign currency gains (losses) of $(206) million, $(20) million, and $35 million in 2018, 2019, and 2020.
During the period from January 1, 2021 to February 2, 2021, we expect to record upward adjustments relating to equity investments in private companies of approximately $1.5 billion. In addition, for this same period, our equity and equity warrant investments in public companies, which are subject to volatility based on changes in market prices, have experienced gains of approximately $1.5 billion based on available trading prices.
Income Taxes
Income tax expense includes U.S. (federal and state) and foreign income taxes. Certain foreign subsidiary earnings and losses are subject to current U.S. taxation and the subsequent repatriation of those earnings is not subject to tax in the U.S. We intend to invest substantially all of our foreign subsidiary earnings, as well as our capital in our foreign subsidiaries, indefinitely outside of the U.S. in those jurisdictions in which we would incur significant, additional costs upon repatriation of such amounts.
Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases, as well as net operating loss and tax credit carryforwards, and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered.
Deferred tax assets represent amounts available to reduce income taxes payable in future periods. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent we believe they will not be realized. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent cumulative loss experience and expectations of future earnings, capital gains and investment in such jurisdiction, the carry-forward periods available to us for tax reporting purposes, and other relevant factors. The effects of the COVID-19 pandemic on our business make estimates of future earnings in relevant jurisdictions more challenging.
We utilize a two-step approach to recognizing and measuring uncertain income tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating our tax positions and estimating our tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. We include interest and penalties related to our tax contingencies in income tax expense.
Fair Value of Financial Instruments
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 marketable securities categorized as Level 3 assets as of December 31, 2019 and 2020.
We hold equity warrants giving us the right to acquire stock of other companies. As of December 31, 2019 and 2020, these warrants had a fair value of $669 million and $3.0 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.
Cash and Cash Equivalents
We classify all highly liquid instruments with an original maturity of three months or less as cash equivalents.
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 $2.3 billion as of December 31, 2019 and 2020.
We provide Fulfillment by Amazon services in connection with certain of our sellers’ programs. Third-party sellers maintain ownership of their inventory, regardless of whether fulfillment is provided by us or the third-party sellers, and therefore these products are not included in our inventories.
We also purchase electronic device components from a variety of suppliers and use several contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate supply, we enter into agreements with contract manufacturers and suppliers for certain electronic device components. A portion of our reported purchase commitments arising from these agreements consists of firm, non-cancellable commitments. These commitments are based on forecasted customer demand. If we reduce these commitments, we may incur additional costs. We also have firm, non-cancellable commitments for certain products offered in our Whole Foods Market stores.
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 2020, customer receivables, net, were $12.6 billion and $14.8 billion, vendor receivables, net, were $4.2 billion and $4.8 billion, and seller receivables, net, were $863 million and $381 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. Receivables are considered impaired and written-off when it is probable that all contractual payments due will not be collected in accordance with the terms of the agreement. The allowance for doubtful accounts was $495 million, $718 million, and $1.1 billion as of December 31, 2018, 2019, and 2020. Additions to the allowance were $878 million, $1.0 billion, and $1.4 billion, and deductions to the allowance were $731 million, $793 million, and $1.0 billion in 2018, 2019, and 2020.
Software Development Costs
We incur software development costs related to products to be sold, leased, or marketed to external users, internal-use software, and our websites. Software development costs capitalized were not significant for the years presented. All other costs, including those related to design or maintenance, are expensed as incurred.
Property and Equipment, Net
Property and equipment are stated at cost less accumulated depreciation and amortization. Incentives that we receive from property and equipment vendors are recorded as a reduction to our costs. Property includes buildings and land that we own, along with property we have acquired under build-to-suit lease arrangements when we have control over the building during the construction period and finance lease arrangements. Equipment includes assets such as servers and networking equipment, heavy equipment, and other fulfillment equipment. Depreciation and amortization is recorded on a straight-line basis over the estimated useful lives of the assets (generally the lesser of 40 years or the remaining life of the underlying building, three years prior to January 1, 2020 and four years subsequent to January 1, 2020 for our servers, five years for networking equipment, ten years for heavy equipment, and three to ten years for other fulfillment equipment). Depreciation and amortization expense is classified within the corresponding operating expense categories on our consolidated statements of operations.
Leases
We categorize leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow us to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in “Property and equipment, net.” All other leases are categorized as operating leases. Our leases generally have terms that range from one to ten years for equipment and one to twenty years for property.
Certain lease contracts include obligations to pay for other services, such as operations and maintenance. For leases of property, we account for these other services as a component of the lease. For substantially all other leases, the services are accounted for separately and we allocate payments to the lease and other services components based on estimated stand-alone prices.
Lease liabilities are recognized at the present value of the fixed lease payments, reduced by landlord incentives using a discount rate based on similarly secured borrowings available to us. Lease assets are recognized based on the initial present value of the fixed lease payments, reduced by landlord incentives, plus any direct costs from executing the leases or lease prepayments reclassified from “Other assets” upon lease commencement. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the lease term.
When we have the option to extend the lease term, terminate the lease before the contractual expiration date, or purchase the leased asset, and it is reasonably certain that we will exercise the option, we consider the option in determining the classification and measurement of the lease. Our leases may include variable payments based on measures that include changes in price indices, market interest rates, or the level of sales at a physical store, which are expensed as incurred.
Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. Finance lease assets are amortized within operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or, in the instance where title does not transfer at the end of the lease term, the lease term. The interest component of a finance lease is included in interest expense and recognized using the effective interest method over the lease term.
We establish assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are amortized over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated retirement costs.
Financing Obligations
We record assets and liabilities for estimated construction costs under build-to-suit lease arrangements when we have control over the building during the construction period. If we continue to control the building after the construction period, the arrangement is classified as a financing obligation instead of a lease. The building is depreciated over the shorter of its useful life or the term of the obligation.
If we do not control the building after the construction period ends, the assets and liabilities for construction costs are derecognized, and we classify the lease as either operating or finance.
Goodwill and Indefinite-Lived Intangible Assets
We evaluate goodwill and indefinite-lived intangible assets for impairment annually or more frequently when an event occurs or circumstances change that indicate the carrying value may not be recoverable. We may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying value and if so, we perform a quantitative test. We compare the carrying value of each reporting unit and indefinite-lived intangible asset to its estimated fair value and if the fair value is determined to be less than the carrying value, we recognize an impairment loss for the difference. We estimate the fair value of the reporting units using discounted cash flows. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on expected category expansion, pricing, market segment share, and general economic conditions.
We completed the required annual impairment test of goodwill for all reporting units and indefinite-lived intangible assets as of April 1, 2020, resulting in no impairments. The fair value of our reporting units substantially exceeded their carrying value. There were no events that caused us to update our annual impairment test. See “Note 5 — Acquisitions, Goodwill, and Acquired Intangible Assets.”
Other Assets
Included in “Other assets” on our consolidated balance sheets are amounts primarily related to video and music content, net of accumulated amortization; acquired intangible assets, net of accumulated amortization; certain equity investments; equity warrant assets; long-term deferred tax assets; and lease prepayments made prior to lease commencement.
Digital Video and Music Content
We obtain video content, inclusive of episodic television and movies, and music content for customers through licensing agreements that have a wide range of licensing provisions including both fixed and variable payment schedules. When the license fee for a specific video or music title is determinable or reasonably estimable and the content is available to us, we recognize an asset and a corresponding liability for the amounts owed. We reduce the liability as payments are made and we amortize the asset to “Cost of sales” on an accelerated basis, based on estimated usage or viewing patterns, or on a straight-line basis. If the licensing fee is not determinable or reasonably estimable, no asset or liability is recorded and licensing costs are expensed as incurred. We also develop original video content for which the production costs are capitalized and amortized to “Cost of sales” predominantly on an accelerated basis that follows the viewing patterns associated with the content. The weighted average remaining life of our capitalized video content is 2.5 years.
Our produced and licensed video content is primarily monetized together as a unit, referred to as a film group, in each major geography where we offer Amazon Prime memberships. These film groups are evaluated for impairment whenever an event occurs or circumstances change indicating the fair value is less than the carrying value. The total capitalized costs of video, which is primarily released content, and music as of December 31, 2019 and 2020 were $5.8 billion and $6.8 billion. Total video and music expense was $7.8 billion and $11.0 billion for the year ended December 31, 2019 and 2020. Total video and music expense includes licensing and production costs associated with content offered within Amazon Prime memberships, and costs associated with digital subscriptions and sold or rented content.
Investments
We generally invest our excess cash in AAA-rated money market funds and investment grade short- to intermediate-term fixed income securities. Such investments are included in “Cash and cash equivalents” or “Marketable securities” on the accompanying consolidated balance sheets.
Marketable debt securities are classified as available-for-sale and reported at fair value with unrealized gains and losses included in “Accumulated other comprehensive income (loss).” Each reporting period, we evaluate whether declines in fair value below carrying value are due to expected credit losses, as well as our ability and intent to hold the investment until a forecasted recovery occurs. Expected credit losses are recorded as an allowance through “Other income (expense), net” on our consolidated statements of operations.
Equity investments in private companies for which we do not have the ability to exercise significant influence are accounted for at cost, with adjustments for observable changes in prices or impairments, and are classified as “Other assets” on our consolidated balance sheets with adjustments recognized in “Other income (expense), net” on our consolidated statements of operations. Each reporting period, we perform a qualitative assessment to evaluate whether the investment is impaired. Our assessment includes a review of recent operating results and trends, recent sales/acquisitions of the investee securities, and other publicly available data. If the investment is impaired, we write it down to its estimated fair value. As of December 31, 2019 and 2020, these investments had a carrying value of $1.5 billion and $2.7 billion.
Equity investments are accounted for using the equity method of accounting if the investment gives us the ability to exercise significant influence, but not control, over an investee. Equity-method investments are included within “Other assets” on our consolidated balance sheets. Our share of the earnings or losses as reported by equity-method investees, amortization of basis differences, related gains or losses, and impairments, if any, are recognized in “Equity-method investment activity, net of tax” on our consolidated statements of operations. Each reporting period, we evaluate whether declines in fair value below carrying value are other-than-temporary and if so, we write down the investment to its estimated fair value.
Equity investments that have readily determinable fair values are included in “Marketable securities” on our consolidated balance sheets and measured at fair value with changes recognized in “Other income (expense), net” on our consolidated statements of operations.
Long-Lived Assets
Long-lived assets, other than goodwill and indefinite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable.
For long-lived assets used in operations, including lease assets, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and estimated fair value. Long-lived assets are considered held for sale when certain criteria are met, including when management has committed to a plan to sell the asset, the asset is available for sale in its immediate condition, and the sale is probable within one year of the reporting date. Assets held for sale are reported at the lower of cost or fair value less costs to sell. Assets held for sale were not significant as of December 31, 2019 and 2020.
Accrued Expenses and Other
Included in “Accrued expenses and other” on our consolidated balance sheets are liabilities primarily related to leases and asset retirement obligations, payroll and related expenses, tax-related liabilities, unredeemed gift cards, customer liabilities, current debt, acquired digital media content, and other operating expenses.
As of December 31, 2019 and 2020, our liabilities for payroll related expenses were $4.3 billion and $7.6 billion and our liabilities for unredeemed gift cards were $3.3 billion and $4.7 billion. We reduce the liability for a gift card when redeemed by a customer. The portion of gift cards that we do not expect to be redeemed is recognized based on customer usage patterns.
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 $7.9 billion was recognized as revenue during the year ended December 31, 2020 and our total unearned revenue as of December 31, 2020 was $11.6 billion. Included in “Other long-term liabilities” on our consolidated balance sheets was $2.0 billion and $1.9 billion of unearned revenue as of December 31, 2019 and 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 $50.0 billion as of December 31, 2020. The weighted average remaining life of our long-term contracts is 3.4 years. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term.
Other Long-Term Liabilities
Included in “Other long-term liabilities” on our consolidated balance sheets are liabilities primarily related to financing obligations, asset retirement obligations, deferred tax liabilities, unearned revenue, tax contingencies, and digital video and music content.
Foreign Currency
We have internationally-focused stores for which the net sales generated, as well as most of the related expenses directly incurred from those operations, are denominated in local functional currencies. The functional currency of our subsidiaries that either operate or support these stores is generally the same as the local currency. Assets and liabilities of these subsidiaries are translated into U.S. Dollars at period-end foreign exchange rates, and revenues and expenses are translated at average rates
prevailing throughout the period. Translation adjustments are included in “Accumulated other comprehensive income (loss),” a separate component of stockholders’ equity, and in the “Foreign currency effect on cash, cash equivalents, and restricted cash,” on our consolidated statements of cash flows. Transaction gains and losses including intercompany transactions denominated in a currency other than the functional currency of the entity involved are included in “Other income (expense), net” on our consolidated statements of operations. In connection with the settlement and remeasurement of intercompany balances, we recorded gains (losses) of $(186) million, $95 million, and $118 million in 2018, 2019, and 2020.
v3.20.4
Financial Instruments
 12 Months Ended
Dec. 31, 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 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. 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
  
Cost or
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Total
Estimated
Fair Value
Cash$9,776 $— $— $9,776 
Level 1 securities:
Money market funds18,850 — — 18,850 
Equity securities202 
Level 2 securities:
Foreign government and agency securities4,794 — — 4,794 
U.S. government and agency securities7,070 11 (1)7,080 
Corporate debt securities11,845 37 (1)11,881 
Asset-backed securities2,355 6 (1)2,360 
Other fixed income securities393 1 — 394 
Equity securities5 
$55,083 $55 $(3)$55,342 
Less: Restricted cash, cash equivalents, and marketable securities (2)(321)
Total cash, cash equivalents, and marketable securities$55,021 
 December 31, 2020
  
Cost or
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Total
Estimated
Fair Value
Cash$10,063 $— $— $10,063 
Level 1 securities:
Money market funds27,430 — — 27,430 
Equity securities (1)617 
Level 2 securities:
Foreign government and agency securities5,130 1 — 5,131 
U.S. government and agency securities7,410 30 (1)7,439 
Corporate debt securities29,684 305 (1)29,988 
Asset-backed securities3,206 32 (3)3,235 
Other fixed income securities701 9 — 710 
Equity securities (1)40 
$83,624 $377 $(5)$84,653 
Less: Restricted cash, cash equivalents, and marketable securities (2)(257)
Total cash, cash equivalents, and marketable securities$84,396 
___________________
(1)The related unrealized gain (loss) recorded in “Other income (expense), net” was $448 million for the year ended December 31, 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 7 — Commitments and Contingencies.”
The following table summarizes gross gains and gross losses realized on sales of available-for-sale fixed income marketable securities (in millions):
Year Ended December 31,
201820192020
Realized gains$2 $11 $92 
Realized losses9 7 56 
The following table summarizes the remaining contractual maturities of our cash equivalents and marketable fixed income securities as of December 31, 2020 (in millions):
Amortized
Cost		Estimated
Fair Value
Due within one year$52,838 $52,850 
Due after one year through five years17,222 17,546 
Due after five years through ten years857 863 
Due after ten years2,644 2,674 
Total$73,561 $73,933 
Actual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions.
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, 2019December 31, 2020
Cash and cash equivalents$36,092 $42,122 
Restricted cash included in accounts receivable, net and other276 233 
Restricted cash included in other assets42 22 
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows$36,410 $42,377 
v3.20.4
Property and Equipment
 12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment PROPERTY AND EQUIPMENT
Property and equipment, at cost, consisted of the following (in millions):
 
 December 31,
 20192020
Gross property and equipment (1):
Land and buildings$39,223 $57,324 
Equipment71,310 97,224 
Other assets3,111 3,772 
Construction in progress6,036 15,228 
Gross property and equipment119,680 173,548 
Total accumulated depreciation and amortization (1)46,975 60,434 
Total property and equipment, net$72,705 $113,114 
__________________
(1)Includes the original cost and accumulated depreciation of fully-depreciated assets.
Depreciation and amortization expense on property and equipment was $12.1 billion, $15.1 billion, and $16.2 billion which includes amortization of property and equipment acquired under finance leases of $7.3 billion, $10.1 billion, and $8.5 billion for 2018, 2019, and 2020.
v3.20.4
Leases
 12 Months Ended
Dec. 31, 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 $68.1 billion as of December 31, 2019 and 2020. Accumulated amortization associated with finance leases was $30.0 billion and $36.5 billion as of December 31, 2019 and 2020.
Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions):
 Year Ended December 31,
 20192020
Operating lease cost$3,669 $5,019 
Finance lease cost:
Amortization of lease assets10,094 8,452 
Interest on lease liabilities695 617 
Finance lease cost10,789 9,069 
Variable lease cost966 1,238 
Total lease cost$15,424 $15,326 
Other information about lease amounts recognized in our consolidated financial statements is as follows:
 December 31, 2019December 31, 2020
 
Weighted-average remaining lease term – operating leases11.511.3
Weighted-average remaining lease term – finance leases5.56.2
Weighted-average discount rate – operating leases3.1 %2.5 %
Weighted-average discount rate – finance leases2.7 %2.1 %

Our lease liabilities were as follows (in millions):
December 31, 2019
 Operating LeasesFinance LeasesTotal
Gross lease liabilities$31,963 $28,875 $60,838 
Less: imputed interest(6,128)(1,896)(8,024)
Present value of lease liabilities25,835 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 
December 31, 2020
 Operating LeasesFinance LeasesTotal
Gross lease liabilities$46,164 $30,437 $76,601 
Less: imputed interest(7,065)(2,003)(9,068)
Present value of lease liabilities39,099 28,434 67,533 
Less: current portion of lease liabilities(4,586)(10,374)(14,960)
Total long-term lease liabilities$34,513 $18,060 $52,573 
v3.20.4
Acquisitions, Goodwill, and Acquired Intangible Assets
 12 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]  
Acquisitions, Goodwill, and Acquired Intangible Assets ACQUISITIONS, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS
2018 Acquisition Activity
On April 12, 2018, we acquired Ring Inc. for cash consideration of approximately $839 million, net of cash acquired, and on September 11, 2018, we acquired PillPack, Inc. for cash consideration of approximately $753 million, net of cash acquired, to expand our product and service offerings. During 2018, we also acquired certain other companies for an aggregate purchase price of $57 million.
2019 Acquisition Activity
During 2019, we acquired certain companies for an aggregate purchase price of $315 million, net of cash acquired.
2020 Acquisition Activity
During 2020, we acquired certain companies for an aggregate purchase price of $1.2 billion, net of cash acquired, of which $1.1 billion was capitalized to in-process research and development intangible assets (“IPR&D”).
The primary reason for all acquisitions was to acquire technologies and know-how to enable Amazon to serve customers more effectively. Acquisition-related costs were expensed as incurred.
Pro forma results of operations have not been presented because the effects of 2020 acquisitions, individually and in the aggregate, were not material to our consolidated results of operations.
Goodwill
The goodwill of the acquired companies is primarily related to expected improvements in technology performance and functionality, as well as sales growth from future product and service offerings and new customers, together with certain intangible assets that do not qualify for separate recognition. The goodwill of the acquired companies is generally not deductible for tax purposes. The following summarizes our goodwill activity in 2019 and 2020 by segment (in millions):
North
America		InternationalAWSConsolidated
Goodwill - January 1, 2019$12,191 $1,270 $1,087 $14,548 
New acquisitions 71 29 89 189 
Other adjustments (1)2 1 14 17 
Goodwill - December 31, 201912,264 1,300 1,190 14,754 
New acquisitions204 6 2 212 
Other adjustments (1)59 (18)10 51 
Goodwill - December 31, 2020$12,527 $1,288 $1,202 $15,017 
 ___________________
(1)Primarily includes changes in foreign exchange rates.
Intangible Assets
Acquired identifiable intangible assets are valued primarily by using discounted cash flows. These assets are included within “Other assets” on our consolidated balance sheets and consist of the following (in millions):
 
 December 31,
 20192020
  
Acquired
Intangibles,
Gross (1)		Accumulated
Amortization (1)		Acquired
Intangibles,
Net		Acquired
Intangibles,
Gross (1)		Accumulated
Amortization (1)		Acquired
Intangibles,
Net		Weighted
Average Life
Remaining
Finite-lived intangible assets (2):
Marketing-related$2,303 $(340)$1,963 $2,289 $(445)$1,844 20.0
Contract-based1,680 (302)1,378 1,917 (418)1,499 11.0
Technology- and content-based1,005 (477)528 948 (555)393 3.3
Customer-related282 (130)152 179 (77)102 4.0
Total finite-lived intangible assets$5,270 $(1,249)$4,021 $5,333 $(1,495)$3,838 14.4
IPR&D and other (3)$28 $28 $1,143 $1,143 
Total acquired intangibles $5,298 $(1,249)$4,049 $6,476 $(1,495)$4,981 
 ___________________
(1)Excludes the original cost and accumulated amortization of fully-amortized intangibles.
(2)Finite-lived intangible assets have estimated useful lives of between one and twenty-five years, and are being amortized to operating expenses on a straight-line basis.
(3)Intangible assets acquired in a business combination that are in-process and used in research and development activities are considered indefinite-lived until the completion or abandonment of the research and development efforts. Once the research and development efforts are completed, we determine the useful life and begin amortizing the assets.
Amortization expense for acquired finite-lived intangibles was $475 million, $565 million, and $509 million in 2018, 2019, and 2020. Expected future amortization expense of acquired finite-lived intangible assets as of December 31, 2020 is as follows (in millions):
 
Year Ended December 31,
2021$464 
2022430 
2023368 
2024303 
2025251 
Thereafter2,022 
$3,838 
v3.20.4
Debt
 12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Debt DEBT
As of December 31, 2020, we had $32.2 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 $924 million as of December 31, 2019 and 2020. Our total long-term debt obligations are as follows (in millions):

Maturities (1)Stated Interest RatesEffective Interest RatesDecember 31, 2019December 31, 2020
2012 Notes issuance of $3.0 billion
20222.50%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
2023 - 2057
2.40% - 5.20%
2.56% - 4.33%
17,000 16,000 
2020 Notes issuance of $10.0 billion
2023 - 2060
0.40% - 2.70%
0.56% - 2.77%
— 10,000 
Credit Facility740 338 
Other long-term debt830 586 
Total face value of long-term debt24,820 33,174 
Unamortized discount and issuance costs, net(101)(203)
Less current portion of long-term debt(1,305)(1,155)
Long-term debt$23,414 $31,816 
___________________
(1)The weighted average remaining lives of the 2012, 2014, 2017, and 2020 Notes were 1.9, 11.8, 16.2, and 18.7 years as of December 31, 2020. The combined weighted average remaining life of the Notes was 15.8 years as of December 31, 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 $37.7 billion as of December 31, 2019 and 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 $338 million of borrowings outstanding under the Credit Facility as of December 31, 2019 and 2020, which had a weighted-average interest rate of 3.4% and 3.0%, respectively. As of December 31, 2019 and 2020, we have pledged $852 million and $398 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 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 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 2020.
As of December 31, 2020, future principal payments for our total long-term debt were as follows (in millions):
Year Ended December 31,
2021$1,156 
20221,629 
20232,283 
20243,355 
20252,251 
Thereafter22,500 
$33,174 
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 $725 million of borrowings outstanding under the Commercial Paper Program as of December 31, 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 0.11%. 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 undrawn portion of the credit facility. There were no borrowings outstanding under the Credit Agreement as of December 31, 2019 and 2020.
We also utilize other short-term credit facilities for working capital purposes. These amounts are included in “Accrued expenses and other” on our consolidated balance sheets. In addition, we had $5.1 billion of unused letters of credit as of December 31, 2020.
v3.20.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 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 December 31, 2020 (in millions):
 Year Ended December 31,  
 20212022202320242025ThereafterTotal
Long-term debt principal and interest$2,187 $2,622 $3,219 $4,272 $3,058 $35,680 $51,038 
Operating lease liabilities5,600 5,184 4,743 4,356 3,951 22,330 46,164 
Finance lease liabilities, including interest10,778 7,246 3,456 1,389 1,035 6,533 30,437 
Financing obligations, including interest227 230 233 237 240 3,751 4,918 
Leases not yet commenced1,010 1,738 1,876 1,973 1,951 20,321 28,869 
Unconditional purchase obligations (1)3,869 3,760 3,367 3,141 2,213 136 16,486 
Other commitments (2)(3)3,671 2,386 945 783 661 8,351 16,797 
Total commitments$27,342 $23,166 $17,839 $16,151 $13,109 $97,102 $194,709 
___________________
(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 that are under construction, asset retirement obligations, and liabilities associated with digital media content agreements with initial terms greater than one year.
(3)Excludes approximately $2.8 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 2020, we have pledged or otherwise restricted $994 million and $875 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 6 — Debt.”
Suppliers
During 2020, no vendor accounted for 10% or more of our purchases. We generally do not have long-term contracts or arrangements with our vendors to guarantee the availability of merchandise, particular payment terms, or the extension of credit limits.
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 following:
In March 2015, Zitovault, LLC filed a complaint against Amazon.com, Inc., Amazon.com, LLC, Amazon Web Services, Inc., and Amazon Web Services, LLC for patent infringement in the United States District Court for the Eastern District of Texas. The complaint alleges that Elastic Compute Cloud, Virtual Private Cloud, Elastic Load Balancing, Auto-Scaling, and Elastic Beanstalk infringe U.S. Patent No. 6,484,257, entitled “System and Method for Maintaining N Number of Simultaneous Cryptographic Sessions Using a Distributed Computing Environment.” The complaint seeks injunctive relief, an unspecified amount of damages, enhanced damages, attorneys’ fees, costs, and interest. In January 2016, the case was transferred to the United States District Court for the Western District of Washington. In June 2016, the case was stayed pending resolution of a review petition we filed with the United States Patent and Trademark Office. In January 2019, the stay of the case was lifted following resolution of the review petition. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter.
In November 2015, Eolas Technologies, Inc. filed a complaint against Amazon.com, Inc. in the United States District Court for the Eastern District of Texas. The complaint alleges, among other things, that the use of “interactive features” on www.amazon.com, including “search suggestions and search results,” infringes U.S. Patent No. 9,195,507, entitled “Distributed Hypermedia Method and System for Automatically Invoking External Application Providing Interaction and Display of Embedded Objects Within A Hypermedia Document.” The complaint sought a judgment of infringement together with costs and attorneys’ fees. In February 2016, Eolas filed an amended complaint seeking, among other things, an unspecified amount of damages. In February 2017, Eolas alleged in its damages report that in the event of a finding of liability Amazon could be subject to $130-$250 million in damages. In April 2017, the case was transferred to the United States District Court for the Northern District of California. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter.
In May 2018, Rensselaer Polytechnic Institute and CF Dynamic Advances LLC filed a complaint against Amazon.com, Inc. in the United States District Court for the Northern District of New York. The complaint alleges, among other things, that “Alexa Voice Software and Alexa enabled devices” infringe U.S. Patent No. 7,177,798, entitled “Natural Language Interface Using Constrained Intermediate Dictionary of Results.” The complaint seeks an injunction, an unspecified amount of damages, enhanced damages, an ongoing royalty, pre- and post-judgment interest, attorneys’ fees, and costs. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter.
In December 2018, Kove IO, Inc. filed a complaint against Amazon Web Services, Inc. in the United States District Court for the Northern District of Illinois. The complaint alleges, among other things, that Amazon S3 and DynamoDB infringe U.S. Patent Nos. 7,814,170 and 7,103,640, both entitled “Network Distributed Tracking Wire Transfer Protocol,” and 7,233,978, entitled “Method And Apparatus For Managing Location Information In A Network Separate From The Data To Which The Location Information Pertains.” The complaint seeks an unspecified amount of damages, enhanced damages, attorneys’ fees, costs, interest, and injunctive relief. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter.
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 November 2020, the European Commission issued a Statement of Objections alleging that Amazon uses data relating to our marketplace sellers in a manner that infringes EU competition rules. The Statement of Objections seeks to impose unspecified fines and remedial actions. We disagree with the preliminary assertions of the European Commission and intend to defend ourselves vigorously in this matter.
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 9 — Income Taxes.”
v3.20.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Stockholders' Equity STOCKHOLDERS’ EQUITY
Preferred Stock
We have authorized 500 million shares of $0.01 par value preferred stock. No preferred stock was outstanding for any year presented.
Common Stock
Common shares outstanding plus shares underlying outstanding stock awards totaled 507 million, 512 million, and 518 million, as of December 31, 2018, 2019, and 2020. These totals include all vested and unvested stock awards outstanding, including those awards we estimate will be forfeited.
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 in 2018, 2019, or 2020.
Stock Award Plans
Employees vest in restricted stock unit awards over the corresponding service term, generally between two and five years.
Stock Award Activity
Stock-based compensation expense is as follows (in millions):
Year Ended December 31,
201820192020
Cost of sales$73 $149 $283 
Fulfillment1,121 1,182 1,357 
Technology and content2,888 3,725 5,061 
Marketing769 1,135 1,710 
General and administrative567 673 797 
Total stock-based compensation expense (1)$5,418 $6,864 $9,208 
___________________
(1)The related tax benefits were $1.1 billion, $1.4 billion, and $1.9 billion for 2018, 2019, and 2020.
The following table summarizes our restricted stock unit activity (in millions):
Number of UnitsWeighted Average
Grant-Date
Fair Value
Outstanding as of January 1, 201820.1 $725 
Units granted5.0 1,522 
Units vested(7.1)578 
Units forfeited(2.1)862 
Outstanding as of December 31, 201815.9 1,024 
Units granted6.7 1,808 
Units vested(6.6)827 
Units forfeited(1.7)1,223 
Outstanding as of December 31, 201914.3 1,458 
Units granted8.0 2,373 
Units vested(5.8)1,239 
Units forfeited(1.3)1,642 
Outstanding as of December 31, 202015.2 2,004 
Scheduled vesting for outstanding restricted stock units as of December 31, 2020, is as follows (in millions):
 Year Ended    
 20212022202320242025ThereafterTotal
Scheduled vesting — restricted stock units5.7 5.4 2.7 1.2 0.1 0.1 15.2 
As of December 31, 2020, there was $13.3 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 remaining weighted-average recognition period of 1.2 years. The estimated forfeiture rate as of December 31, 2018, 2019, and 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.
During 2018, 2019, and 2020, the fair value of restricted stock units that vested was $11.4 billion, $11.7 billion, and $15.5 billion.
Common Stock Available for Future Issuance
As of December 31, 2020, common stock available for future issuance to employees is 102 million shares.
v3.20.4
Income Taxes
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
In 2018, 2019, and 2020, we recorded net tax provisions of $1.2 billion, $2.4 billion, and $2.9 billion. Tax benefits relating to excess stock-based compensation deductions and accelerated depreciation deductions are reducing our U.S. taxable income. Cash taxes paid, net of refunds, were $1.2 billion, $881 million, and $1.7 billion for 2018, 2019, and 2020.
U.S. companies are eligible for a deduction that lowers the effective tax rate on certain foreign income. This regime is referred to as the Foreign-Derived Intangible Income deduction (“FDII”). In addition, certain foreign subsidiary earnings and losses are subject to current U.S. taxation and the subsequent repatriation of those earnings is not subject to tax in the U.S. The U.S. tax rules also provide for enhanced accelerated depreciation deductions by allowing the election of full expensing of qualified property, primarily equipment, through 2022. Our federal tax provision included the election of full expensing of qualified property for 2018 and 2019 and a partial election for 2020.
The components of the provision for income taxes, net are as follows (in millions):
 Year Ended December 31,
201820192020
U.S. Federal:
Current$(129)$162 $1,835 
Deferred565 914 (151)
Total436 1,076 1,684 
U.S. State:
Current322 276 626 
Deferred5 8 (190)
Total327 284 436 
International:
Current563 1,140 956 
Deferred(129)(126)(213)
Total434 1,014 743 
Provision for income taxes, net$1,197 $2,374 $2,863 
U.S. and international components of income before income taxes are as follows (in millions):
 Year Ended December 31,
 201820192020
U.S.$11,157 $13,285 $20,219 
International104 691 3,959 
Income before income taxes$11,261 $13,976 $24,178 
The items accounting for differences between income taxes computed at the federal statutory rate and the provision recorded for income taxes are as follows (in millions):
 Year Ended December 31,
 201820192020
Income taxes computed at the federal statutory rate$2,365 $2,935 $5,078 
Effect of:
Tax impact of foreign earnings and losses162 453 (538)
State taxes, net of federal benefits263 221 343 
Tax credits(419)(466)(639)
Stock-based compensation (1)(1,086)(850)(1,107)
Foreign income deduction (FDII)(43)(72)(372)
2017 Impact of U.S. Tax Act(157)— — 
Other, net112 153 98 
Total$1,197 $2,374 $2,863 
___________________
(1)Includes non-deductible stock-based compensation and excess tax benefits from stock-based compensation. Our tax provision includes $1.6 billion, $1.4 billion, and $1.8 billion of excess tax benefits from stock-based compensation for 2018, 2019, and 2020.
Our provision for income taxes in 2019 was higher than in 2018 primarily due to an increase in U.S. pre-tax income, a decline in excess tax benefits from stock-based compensation, and the one-time provisional tax benefit of the U.S. Tax Act recognized in 2018.
Our provision for income taxes in 2020 was higher than in 2019 primarily due to an increase in pretax income. This was partially offset by the impact of developments in our ongoing global tax controversies on taxes related to our foreign earnings and losses, an increase in excess tax benefits from stock-based compensation, and an increase in our foreign income deduction under FDII. In addition, our Luxembourg operations generated earnings in 2020 and utilized deferred tax assets previously subject to valuation allowances.
We intend to invest substantially all of our foreign subsidiary earnings, as well as our capital in our foreign subsidiaries, indefinitely outside of the U.S. in those jurisdictions in which we would incur significant, additional costs upon repatriation of such amounts.
Deferred income tax assets and liabilities are as follows (in millions):
 December 31,
 20192020
Deferred tax assets (1):
Loss carryforwards U.S. - Federal/States188 245 
Loss carryforwards - Foreign3,232 3,876 
Accrued liabilities, reserves, and other expenses1,373 2,457 
Stock-based compensation1,585 2,033 
Depreciation and amortization2,385 1,886 
Operating lease liabilities6,648 10,183 
Other items728 559 
Tax credits772 207 
Total gross deferred tax assets16,911 21,446 
Less valuation allowances (2)(5,754)(5,803)
Deferred tax assets, net of valuation allowances11,157 15,643 
Deferred tax liabilities:
Depreciation and amortization(5,507)(5,508)
Operating lease assets(6,331)(9,539)
Other items(640)(1,462)
Net deferred tax assets (liabilities), net of valuation allowances$(1,321)$(866)
 ___________________
(1)Deferred tax assets are presented after tax effects and net of tax contingencies.
(2)Relates primarily to deferred tax assets that would only be realizable upon the generation of net income in certain foreign taxing jurisdictions.
Our valuation allowances primarily relate to foreign deferred tax assets, including substantially all of our foreign net operating loss carryforwards as of December 31, 2020. Our foreign net operating loss carryforwards for income tax purposes as of December 31, 2020 were approximately $13.4 billion before tax effects and certain of these amounts are subject to annual limitations under applicable tax law. If not utilized, a portion of these losses will begin to expire in 2021. All remaining federal tax credits, which were primarily related to the U.S. federal research and development credit, reduced our federal tax liability in 2020.
We regularly assess whether it is more likely than not that we will realize our deferred tax assets in each taxing jurisdiction in which we operate. In performing this assessment with respect to each jurisdiction, we review all available evidence, including recent cumulative loss experience and expectations of future earnings, capital gains, and investment in such jurisdiction, the carry-forward periods available to us for tax reporting purposes, and other relevant factors. The effects of the COVID-19 pandemic on our business make estimates of future earnings more challenging. Since Q2 2017, we have recorded a valuation allowance against our net deferred tax assets in Luxembourg. There is still significant uncertainty whether our earnings in Luxembourg are sustainable in the future and we will maintain the valuation allowance until sufficient positive evidence exists to support a release of the valuation allowance.
Tax Contingencies
We are subject to income taxes in the U.S. (federal and state) and numerous foreign jurisdictions. Significant judgment is required in evaluating our tax positions and determining our provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when we believe that certain positions might be challenged despite our belief that our tax return positions are fully supportable. We adjust these reserves in light of changing facts and circumstances, such as the outcome of tax audits. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate.
The reconciliation of our tax contingencies is as follows (in millions):
 December 31,
 201820192020
Gross tax contingencies – January 1$2,309 $3,414 $3,923 
Gross increases to tax positions in prior periods164 216 88 
Gross decreases to tax positions in prior periods(90)(181)(465)
Gross increases to current period tax positions1,088 707 507 
Settlements with tax authorities(36)(207)(1,207)
Lapse of statute of limitations(21)(26)(26)
Gross tax contingencies – December 31 (1)$3,414 $3,923 $2,820 
 ___________________
(1)As of December 31, 2020, we had approximately $2.8 billion of accrued tax contingencies of which $1.5 billion, if fully recognized, would decrease our effective tax rate. The decrease in our tax contingencies in 2020 was primarily a result of developments in our global tax controversies.
As of December 31, 2019 and 2020, we had accrued interest and penalties, net of federal income tax benefit, related to tax contingencies of $131 million and $83 million. Interest and penalties, net of federal income tax benefit, recognized for the years ended December 31, 2018, 2019, and 2020 was $20 million, $4 million, and $(48) million.
We are under examination, or may be subject to examination, by the Internal Revenue Service (“IRS”) for the calendar year 2013 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. During Q3 2020, we resolved the audits of tax years 2007 through 2012 with the IRS for amounts that were materially consistent with our accrual.
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.
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. The actual amount of any change could vary significantly depending on the ultimate timing and nature of any settlements. We cannot currently provide an estimate of the range of possible outcomes.
v3.20.4
Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATIONWe 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 services for start-ups, enterprises, government agencies, and academic institutions.
Information on reportable segments and reconciliation to consolidated net income (loss) is as follows (in millions):
  
Year Ended December 31,
 201820192020
North America
Net sales$141,366 $170,773 $236,282 
Operating expenses134,099 163,740 227,631 
Operating income$7,267 $7,033 $8,651 
International
Net sales$65,866 $74,723 $104,412 
Operating expenses68,008 76,416 103,695 
Operating income (loss)$(2,142)$(1,693)$717 
AWS
Net sales$25,655 $35,026 $45,370 
Operating expenses18,359 25,825 31,839 
Operating income$7,296 $9,201 $13,531 
Consolidated
Net sales$232,887 $280,522 $386,064 
Operating expenses220,466 265,981 363,165 
Operating income12,421 14,541 22,899 
Total non-operating income (expense)(1,160)(565)1,279 
Provision for income taxes(1,197)(2,374)(2,863)
Equity-method investment activity, net of tax9 (14)16 
Net income$10,073 $11,588 $21,331 
Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):
  
Year Ended December 31,
 201820192020
Net Sales:
Online stores (1)$122,987 $141,247 $197,346 
Physical stores (2)17,224 17,192 16,227 
Third-party seller services (3)42,745 53,762 80,461 
Subscription services (4)14,168 19,210 25,207 
AWS25,655 35,026 45,370 
Other (5)10,108 14,085 21,453 
Consolidated$232,887 $280,522 $386,064 
___________________
(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, videos, games, music, 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 to 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 digital video, audiobook, digital music, e-book, and other non-AWS subscription services.
(5)Primarily includes sales of advertising services, as well as sales related to our other service offerings.
Net sales generated from our internationally-focused online stores are denominated in local functional currencies. Revenues are translated at average rates prevailing throughout the period. Net sales attributed to countries that represent a significant portion of consolidated net sales are as follows (in millions):
 Year Ended December 31,
 201820192020
United States$160,146 $193,636 $263,520 
Germany19,881 22,232 29,565 
United Kingdom14,524 17,527 26,483 
Japan13,829 16,002 20,461 
Rest of world24,507 31,125 46,035 
Consolidated$232,887 $280,522 $386,064 
Total segment assets exclude corporate assets, such as cash and cash equivalents, marketable securities, other long-term investments, corporate facilities, goodwill and other acquired intangible assets, and tax assets. Technology infrastructure assets are allocated among the segments based on usage, with the majority allocated to the AWS segment. Total segment assets reconciled to consolidated amounts are as follows (in millions):
 December 31,
 201820192020
North America (1)$47,251 $72,277 $108,405 
International (1)19,923 30,709 42,212 
AWS (2)26,340 36,500 47,574 
Corporate69,134 85,762 123,004 
Consolidated$162,648 $225,248 $321,195 
___________________
(1)North America and International segment assets primarily consist of property and equipment, operating leases, inventory, and accounts receivable.
(2)AWS segment assets primarily consist of property and equipment and accounts receivable.
Property and equipment, net by segment is as follows (in millions):
 December 31,
 201820192020
North America$27,052 $31,719 $54,912 
International8,552 9,566 15,375 
AWS18,851 23,481 32,151 
Corporate7,342 7,939 10,676 
Consolidated$61,797 $72,705 $113,114 
Total net additions to property and equipment by segment are as follows (in millions):
 Year Ended December 31,
 201820192020
North America (1)$10,749 $11,752 $29,889 
International (1)2,476 3,298 8,072 
AWS (2)9,783 13,058 16,530 
Corporate2,060 1,910 3,485 
Consolidated$25,068 $30,018 $57,976 
___________________
(1)Includes property and equipment added under finance leases of $2.0 billion, $3.8 billion, and $5.6 billion in 2018, 2019, and 2020, and under financing obligations of $3.0 billion, $1.3 billion, and $2.7 billion in 2018, 2019, and 2020.
(2)Includes property and equipment added under finance leases of $8.4 billion, $10.6 billion, and $7.7 billion in 2018, 2019, and 2020, and under financing obligations of $245 million, $0 million, and $130 million in 2018, 2019, and 2020.
U.S. property and equipment, net and operating leases were $45.1 billion, $69.8 billion, and $109.5 billion, in 2018, 2019, and 2020, and non-U.S. property and equipment, net and operating leases were $16.7 billion, $28.0 billion, and $41.2 billion in 2018, 2019, and 2020. Except for the U.S., property and equipment, net and operating leases in any single country were less than 10% of consolidated property and equipment, net and operating leases.
Depreciation and amortization expense on property and equipment, including corporate property and equipment, are allocated to all segments based on usage. Total depreciation and amortization expense, by segment, is as follows (in millions):
 Year Ended December 31,
 201820192020
North America$4,415 $5,106 $6,421 
International1,628 1,886 2,215 
AWS6,095 8,158 7,603 
Consolidated$12,138 $15,150 $16,239 
v3.20.4
Quarterly Results (Unaudited)
 12 Months Ended
Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Results (Unaudited) QUARTERLY RESULTS (UNAUDITED)
The following tables contain selected unaudited statement of operations information for each quarter of 2019 and 2020. The following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Our business is affected by seasonality, which historically has resulted in higher sales volume during our fourth quarter. Unaudited quarterly results are as follows (in millions, except per share data):
Year Ended December 31, 2019 (1)
 First
Quarter		Second
Quarter		Third
Quarter		Fourth
Quarter
Net sales$59,700 $63,404 $69,981 $87,437 
Operating income4,420 3,084 3,157 3,879 
Income before income taxes4,401 2,889 2,632 4,053 
Provision for income taxes(836)(257)(494)(786)
Net income3,561 2,625 2,134 3,268 
Basic earnings per share7.24 5.32 4.31 6.58 
Diluted earnings per share7.09 5.22 4.23 6.47 
Shares used in computation of earnings per share:
Basic491 493 495 496 
Diluted502 503 504 505 
 Year Ended December 31, 2020 (1)
 First
Quarter		Second
Quarter		Third
Quarter		Fourth
Quarter
Net sales$75,452 $88,912 $96,145 $125,555 
Operating income3,989 5,843 6,194 6,873 
Income before income taxes3,383 6,221 6,809 7,765 
Provision for income taxes(744)(984)(569)(566)
Net income2,535 5,243 6,331 7,222 
Basic earnings per share5.09 10.50 12.63 14.38 
Diluted earnings per share5.01 10.30 12.37 14.09 
Shares used in computation of earnings per share:
Basic498 500 501 502 
Diluted506 509 512 513 
 ___________________
(1)The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period.
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures (Policies)
 12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Segment Information We have organized our operations into three segments: North America, International, and AWS.
Prior Period Reclassifications
Prior Period Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation. “Proceeds from short-term debt, and other” were reclassified from “Proceeds from long-term debt and other” and “Repayments of short-term debt, and other” were reclassified from “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 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.
Revenue
Revenue
Revenue is measured based on the amount of consideration that we expect to receive, reduced by estimates for return allowances, promotional discounts, and rebates. Revenue also excludes any amounts collected on behalf of third parties, including sales and indirect taxes. In arrangements where we have multiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price. We generally determine stand-alone selling prices based on the prices charged to customers or using expected cost plus a margin.
A description of our principal revenue generating activities is as follows:
Retail sales - We offer consumer products through our online and physical stores. Revenue is recognized when control of the goods is transferred to the customer, which generally occurs upon our delivery to a third-party carrier or, in the case of an Amazon delivery, to the customer.
Third-party seller services - We offer programs that enable sellers to sell their products in our stores, and fulfill orders through us. We are not the seller of record in these transactions. The commissions and any related fulfillment and shipping fees we earn from these arrangements are recognized when the services are rendered, which generally occurs upon delivery of the related products to a third-party carrier or, in the case of an Amazon delivery, to the customer.
Subscription services - Our subscription sales include fees associated with Amazon Prime memberships and access to content including digital video, audiobooks, digital music, e-books, and other non-AWS subscription services. Prime memberships provide our customers with access to an evolving suite of benefits that represent a single stand-ready obligation. Subscriptions are paid for at the time of or in advance of delivering the services. Revenue from such arrangements is recognized over the subscription period.
AWS - Our AWS arrangements include global sales of compute, storage, database, and other services. Revenue is allocated to services using stand-alone selling prices and is primarily recognized when the customer uses these services, based on the quantity of services rendered, such as compute or storage capacity delivered on-demand. Certain services, including compute and database, are also offered as a fixed quantity over a specified term, for which revenue is recognized ratably. Sales commissions we pay in connection with contracts that exceed one year are capitalized and amortized over the contract term.
Other - Other revenue primarily includes sales of advertising services, which are recognized as ads are delivered based on the number of clicks or impressions.
Return Allowances
Return allowances, which reduce revenue and cost of sales, are estimated using historical experience. Liabilities for return allowances are included in “Accrued expenses and other” and were $623 million, $712 million, and $859 million as of December 31, 2018, 2019, and 2020. Additions to the allowance were $2.3 billion, $2.5 billion, and $3.5 billion and deductions from the allowance were $2.3 billion, $2.5 billion, and $3.6 billion in 2018, 2019, and 2020. Included in “Inventories” on our consolidated balance sheets are assets totaling $519 million, $629 million, and $852 million as of December 31, 2018, 2019, and 2020, for the rights to recover products from customers associated with our liabilities for return allowances.
Cost of Sales
Cost of sales primarily consists of the purchase price of consumer products, inbound and outbound shipping costs, including costs related to sortation and delivery centers and where we are the transportation service provider, and digital media content costs where we record revenue gross, including video and music. Shipping costs to receive products from our suppliers are included in our inventory, and recognized as cost of sales upon sale of products to our customers. Payment processing and related transaction costs, including those associated with seller transactions, are classified in “Fulfillment” on our consolidated statements of operations.
Vendor Agreements
We have agreements with our vendors to receive consideration primarily for cooperative marketing efforts, promotions, incentives, and volume rebates. We generally consider these amounts received from vendors to be a reduction of the prices we pay for their goods, including property and equipment, or services, and are recorded as a reduction of the cost of inventory, cost of services, or cost of property and equipment. Volume rebates typically depend on reaching minimum purchase thresholds. We evaluate the likelihood of reaching purchase thresholds using past experience and current year forecasts. When volume rebates can be reasonably estimated, we record a portion of the rebate as we make progress towards the purchase threshold.
Fulfillment
Fulfillment
Fulfillment costs primarily consist of those costs incurred in operating and staffing our North America and International segments’ fulfillment centers, physical stores, and customer service centers, including costs attributable to buying, receiving, inspecting, and warehousing inventories; picking, packaging, and preparing customer orders for shipment; payment processing and related transaction costs, including costs associated with our guarantee for certain seller transactions; responding to inquiries from customers; and supply chain management for our manufactured electronic devices. Fulfillment costs also include amounts paid to third parties that assist us in fulfillment and customer service operations.
Technology and Content
Technology and Content
Technology and content costs include payroll and related expenses for employees involved in the research and development of new and existing products and services, development, design, and maintenance of our stores, curation and display of products and services made available in our online stores, and infrastructure costs. Infrastructure costs include servers, networking equipment, and data center related depreciation and amortization, rent, utilities, and other expenses necessary to support AWS and other Amazon businesses. Collectively, these costs reflect the investments we make in order to offer a wide variety of products and services to our customers. Technology and content costs are generally expensed as incurred.
Marketing
Marketing
Marketing costs primarily consist of advertising and payroll and related expenses for personnel engaged in marketing and selling activities, including sales commissions related to AWS. We pay commissions to third parties when their customer referrals result in sales. We also participate in cooperative advertising arrangements with certain of our vendors, and other third parties.
Advertising and other promotional costs to market our products and services are expensed as incurred and were $8.2 billion, $11.0 billion, and $10.9 billion in 2018, 2019, and 2020.
General and Administrative
General and Administrative
General and administrative expenses primarily consist of costs for corporate functions, including payroll and related expenses; facilities and equipment expenses, such as depreciation and amortization expense and rent; and professional fees and litigation costs.
Stock-Based Compensation Stock-Based CompensationCompensation cost for all equity-classified stock awards expected to vest is measured at fair value on the date of grant and recognized over the service period. The fair value of restricted stock units is determined based on the number of shares granted and the quoted price of our common stock. Such value is recognized as expense over the service period, net of estimated forfeitures, using the accelerated method. The estimated number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. We consider many factors when estimating expected forfeitures, including historical forfeiture experience and employee level. Additionally, stock-based compensation includes stock appreciation rights that are expected to settle in cash. These liability-classified awards are remeasured to fair value at the end of each reporting period until settlement or expiration.
Other Operating Expense (Income), Net Other Operating Expense (Income), NetOther operating expense (income), net, consists primarily of a benefit from accelerated vesting of warrants to acquire equity of a vendor in Q4 2020, offset by a lease impairment in Q2 2020 and the amortization of intangible assets.
Other Income (Expense), Net
Other Income (Expense), Net
Other income (expense), net, consists primarily of valuations and adjustments of equity securities of $145 million, $231 million, and $833 million in 2018, 2019, and 2020, equity warrant valuation gains (losses) of $(131) million, $11 million, and $1.5 billion in 2018, 2019, and 2020, and foreign currency gains (losses) of $(206) million, $(20) million, and $35 million in 2018, 2019, and 2020.
During the period from January 1, 2021 to February 2, 2021, we expect to record upward adjustments relating to equity investments in private companies of approximately $1.5 billion. In addition, for this same period, our equity and equity warrant investments in public companies, which are subject to volatility based on changes in market prices, have experienced gains of approximately $1.5 billion based on available trading prices.
Income Taxes
Income Taxes
Income tax expense includes U.S. (federal and state) and foreign income taxes. Certain foreign subsidiary earnings and losses are subject to current U.S. taxation and the subsequent repatriation of those earnings is not subject to tax in the U.S. We intend to invest substantially all of our foreign subsidiary earnings, as well as our capital in our foreign subsidiaries, indefinitely outside of the U.S. in those jurisdictions in which we would incur significant, additional costs upon repatriation of such amounts.
Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases, as well as net operating loss and tax credit carryforwards, and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered.
Deferred tax assets represent amounts available to reduce income taxes payable in future periods. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent we believe they will not be realized. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent cumulative loss experience and expectations of future earnings, capital gains and investment in such jurisdiction, the carry-forward periods available to us for tax reporting purposes, and other relevant factors. The effects of the COVID-19 pandemic on our business make estimates of future earnings in relevant jurisdictions more challenging.
We utilize a two-step approach to recognizing and measuring uncertain income tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating our tax positions and estimating our tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. We include interest and penalties related to our tax contingencies in income tax expense.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
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 marketable securities categorized as Level 3 assets as of December 31, 2019 and 2020.
We hold equity warrants giving us the right to acquire stock of other companies. As of December 31, 2019 and 2020, these warrants had a fair value of $669 million and $3.0 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.
Cash and Cash Equivalents
Cash and Cash Equivalents
We classify all highly liquid instruments with an original maturity of three months or less as cash equivalents.
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 $2.3 billion as of December 31, 2019 and 2020.
We provide Fulfillment by Amazon services in connection with certain of our sellers’ programs. Third-party sellers maintain ownership of their inventory, regardless of whether fulfillment is provided by us or the third-party sellers, and therefore these products are not included in our inventories.
We also purchase electronic device components from a variety of suppliers and use several contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate supply, we enter into agreements with contract manufacturers and suppliers for certain electronic device components. A portion of our reported purchase commitments arising from these agreements consists of firm, non-cancellable commitments. These commitments are based on forecasted customer demand. If we reduce these commitments, we may incur additional costs. We also have firm, non-cancellable commitments for certain products offered in our Whole Foods Market stores.
Accounts Receivable, Net and Other
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 2020, customer receivables, net, were $12.6 billion and $14.8 billion, vendor receivables, net, were $4.2 billion and $4.8 billion, and seller receivables, net, were $863 million and $381 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. Receivables are considered impaired and written-off when it is probable that all contractual payments due will not be collected in accordance with the terms of the agreement.
Software Development Costs Software Development CostsWe incur software development costs related to products to be sold, leased, or marketed to external users, internal-use software, and our websites. Software development costs capitalized were not significant for the years presented. All other costs, including those related to design or maintenance, are expensed as incurred.
Property and Equipment, Net Property and Equipment, NetProperty and equipment are stated at cost less accumulated depreciation and amortization. Incentives that we receive from property and equipment vendors are recorded as a reduction to our costs. Property includes buildings and land that we own, along with property we have acquired under build-to-suit lease arrangements when we have control over the building during the construction period and finance lease arrangements. Equipment includes assets such as servers and networking equipment, heavy equipment, and other fulfillment equipment. Depreciation and amortization is recorded on a straight-line basis over the estimated useful lives of the assets (generally the lesser of 40 years or the remaining life of the underlying building, three years prior to January 1, 2020 and four years subsequent to January 1, 2020 for our servers, five years for networking equipment, ten years for heavy equipment, and three to ten years for other fulfillment equipment). Depreciation and amortization expense is classified within the corresponding operating expense categories on our consolidated statements of operations.
Leases
Leases
We categorize leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow us to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in “Property and equipment, net.” All other leases are categorized as operating leases. Our leases generally have terms that range from one to ten years for equipment and one to twenty years for property.
Certain lease contracts include obligations to pay for other services, such as operations and maintenance. For leases of property, we account for these other services as a component of the lease. For substantially all other leases, the services are accounted for separately and we allocate payments to the lease and other services components based on estimated stand-alone prices.
Lease liabilities are recognized at the present value of the fixed lease payments, reduced by landlord incentives using a discount rate based on similarly secured borrowings available to us. Lease assets are recognized based on the initial present value of the fixed lease payments, reduced by landlord incentives, plus any direct costs from executing the leases or lease prepayments reclassified from “Other assets” upon lease commencement. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the lease term.
When we have the option to extend the lease term, terminate the lease before the contractual expiration date, or purchase the leased asset, and it is reasonably certain that we will exercise the option, we consider the option in determining the classification and measurement of the lease. Our leases may include variable payments based on measures that include changes in price indices, market interest rates, or the level of sales at a physical store, which are expensed as incurred.
Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. Finance lease assets are amortized within operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or, in the instance where title does not transfer at the end of the lease term, the lease term. The interest component of a finance lease is included in interest expense and recognized using the effective interest method over the lease term.
We establish assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are amortized over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated retirement costs.
Financing Obligations
Financing Obligations
We record assets and liabilities for estimated construction costs under build-to-suit lease arrangements when we have control over the building during the construction period. If we continue to control the building after the construction period, the arrangement is classified as a financing obligation instead of a lease. The building is depreciated over the shorter of its useful life or the term of the obligation.
If we do not control the building after the construction period ends, the assets and liabilities for construction costs are derecognized, and we classify the lease as either operating or finance.
Goodwill and Indefinite-Lived Intangible Assets
Goodwill and Indefinite-Lived Intangible Assets
We evaluate goodwill and indefinite-lived intangible assets for impairment annually or more frequently when an event occurs or circumstances change that indicate the carrying value may not be recoverable. We may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying value and if so, we perform a quantitative test. We compare the carrying value of each reporting unit and indefinite-lived intangible asset to its estimated fair value and if the fair value is determined to be less than the carrying value, we recognize an impairment loss for the difference. We estimate the fair value of the reporting units using discounted cash flows. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on expected category expansion, pricing, market segment share, and general economic conditions.
We completed the required annual impairment test of goodwill for all reporting units and indefinite-lived intangible assets as of April 1, 2020, resulting in no impairments. The fair value of our reporting units substantially exceeded their carrying value. There were no events that caused us to update our annual impairment test.
Other Assets
Other Assets
Included in “Other assets” on our consolidated balance sheets are amounts primarily related to video and music content, net of accumulated amortization; acquired intangible assets, net of accumulated amortization; certain equity investments; equity warrant assets; long-term deferred tax assets; and lease prepayments made prior to lease commencement.
Digital Video and Music Content
Digital Video and Music Content
We obtain video content, inclusive of episodic television and movies, and music content for customers through licensing agreements that have a wide range of licensing provisions including both fixed and variable payment schedules. When the license fee for a specific video or music title is determinable or reasonably estimable and the content is available to us, we recognize an asset and a corresponding liability for the amounts owed. We reduce the liability as payments are made and we amortize the asset to “Cost of sales” on an accelerated basis, based on estimated usage or viewing patterns, or on a straight-line basis. If the licensing fee is not determinable or reasonably estimable, no asset or liability is recorded and licensing costs are expensed as incurred. We also develop original video content for which the production costs are capitalized and amortized to “Cost of sales” predominantly on an accelerated basis that follows the viewing patterns associated with the content. The weighted average remaining life of our capitalized video content is 2.5 years.
Our produced and licensed video content is primarily monetized together as a unit, referred to as a film group, in each major geography where we offer Amazon Prime memberships. These film groups are evaluated for impairment whenever an event occurs or circumstances change indicating the fair value is less than the carrying value. The total capitalized costs of video, which is primarily released content, and music as of December 31, 2019 and 2020 were $5.8 billion and $6.8 billion. Total video and music expense was $7.8 billion and $11.0 billion for the year ended December 31, 2019 and 2020. Total video and music expense includes licensing and production costs associated with content offered within Amazon Prime memberships, and costs associated with digital subscriptions and sold or rented content.
Investments
Investments
We generally invest our excess cash in AAA-rated money market funds and investment grade short- to intermediate-term fixed income securities. Such investments are included in “Cash and cash equivalents” or “Marketable securities” on the accompanying consolidated balance sheets.
Marketable debt securities are classified as available-for-sale and reported at fair value with unrealized gains and losses included in “Accumulated other comprehensive income (loss).” Each reporting period, we evaluate whether declines in fair value below carrying value are due to expected credit losses, as well as our ability and intent to hold the investment until a forecasted recovery occurs. Expected credit losses are recorded as an allowance through “Other income (expense), net” on our consolidated statements of operations.
Equity investments in private companies for which we do not have the ability to exercise significant influence are accounted for at cost, with adjustments for observable changes in prices or impairments, and are classified as “Other assets” on our consolidated balance sheets with adjustments recognized in “Other income (expense), net” on our consolidated statements of operations. Each reporting period, we perform a qualitative assessment to evaluate whether the investment is impaired. Our assessment includes a review of recent operating results and trends, recent sales/acquisitions of the investee securities, and other publicly available data. If the investment is impaired, we write it down to its estimated fair value. As of December 31, 2019 and 2020, these investments had a carrying value of $1.5 billion and $2.7 billion.
Equity investments are accounted for using the equity method of accounting if the investment gives us the ability to exercise significant influence, but not control, over an investee. Equity-method investments are included within “Other assets” on our consolidated balance sheets. Our share of the earnings or losses as reported by equity-method investees, amortization of basis differences, related gains or losses, and impairments, if any, are recognized in “Equity-method investment activity, net of tax” on our consolidated statements of operations. Each reporting period, we evaluate whether declines in fair value below carrying value are other-than-temporary and if so, we write down the investment to its estimated fair value. Equity investments that have readily determinable fair values are included in “Marketable securities” on our consolidated balance sheets and measured at fair value with changes recognized in “Other income (expense), net” on our consolidated statements of operations.
Long-Lived Assets
Long-Lived Assets
Long-lived assets, other than goodwill and indefinite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable.
For long-lived assets used in operations, including lease assets, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and estimated fair value. Long-lived assets are considered held for sale when certain criteria are met, including when management has committed to a plan to sell the asset, the asset is available for sale in its immediate condition, and the sale is probable within one year of the reporting date. Assets held for sale are reported at the lower of cost or fair value less costs to sell.
Accrued Expenses and Other
Accrued Expenses and Other
Included in “Accrued expenses and other” on our consolidated balance sheets are liabilities primarily related to leases and asset retirement obligations, payroll and related expenses, tax-related liabilities, unredeemed gift cards, customer liabilities, current debt, acquired digital media content, and other operating expenses.
As of December 31, 2019 and 2020, our liabilities for payroll related expenses were $4.3 billion and $7.6 billion and our liabilities for unredeemed gift cards were $3.3 billion and $4.7 billion. We reduce the liability for a gift card when redeemed by a customer. The portion of gift cards that we do not expect to be redeemed is recognized based on customer usage patterns.
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 $7.9 billion was recognized as revenue during the year ended December 31, 2020 and our total unearned revenue as of December 31, 2020 was $11.6 billion. Included in “Other long-term liabilities” on our consolidated balance sheets was $2.0 billion and $1.9 billion of unearned revenue as of December 31, 2019 and 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 $50.0 billion as of December 31, 2020. The weighted average remaining life of our long-term contracts is 3.4 years. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term.
Other Long-Term Liabilities
Other Long-Term Liabilities
Included in “Other long-term liabilities” on our consolidated balance sheets are liabilities primarily related to financing obligations, asset retirement obligations, deferred tax liabilities, unearned revenue, tax contingencies, and digital video and music content.
Foreign Currency
Foreign Currency
We have internationally-focused stores for which the net sales generated, as well as most of the related expenses directly incurred from those operations, are denominated in local functional currencies. The functional currency of our subsidiaries that either operate or support these stores is generally the same as the local currency. Assets and liabilities of these subsidiaries are translated into U.S. Dollars at period-end foreign exchange rates, and revenues and expenses are translated at average rates
prevailing throughout the period. Translation adjustments are included in “Accumulated other comprehensive income (loss),” a separate component of stockholders’ equity, and in the “Foreign currency effect on cash, cash equivalents, and restricted cash,” on our consolidated statements of cash flows. Transaction gains and losses including intercompany transactions denominated in a currency other than the functional currency of the entity involved are included in “Other income (expense), net” on our consolidated statements of operations.
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures (Tables)
 12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Supplemental Cash Flow Information
The following table shows supplemental cash flow information (in millions):
Year Ended December 31,
201820192020
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt$854 $875 $916 
Cash paid for operating leases$— $3,361 $4,475 
Cash paid for interest on finance leases$381 $647 $612 
Cash paid for interest on financing obligations$194 $39 $102 
Cash paid for income taxes, net of refunds$1,184 $881 $1,713 
Assets acquired under operating leases$— $7,870 $16,217 
Property and equipment acquired under finance leases$10,615 $13,723 $11,588 
Property and equipment acquired under build-to-suit arrangements$3,641 $1,362 $2,267 
Schedule of Calculation of Diluted Shares
The following table shows the calculation of diluted shares (in millions):
  
Year Ended December 31,
 201820192020
Shares used in computation of basic earnings per share487 494 500 
Total dilutive effect of outstanding stock awards13 10 10 
Shares used in computation of diluted earnings per share500 504 510 
v3.20.4
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Summary of 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
  
Cost or
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Total
Estimated
Fair Value
Cash$9,776 $— $— $9,776 
Level 1 securities:
Money market funds18,850 — — 18,850 
Equity securities202 
Level 2 securities:
Foreign government and agency securities4,794 — — 4,794 
U.S. government and agency securities7,070 11 (1)7,080 
Corporate debt securities11,845 37 (1)11,881 
Asset-backed securities2,355 6 (1)2,360 
Other fixed income securities393 1 — 394 
Equity securities5 
$55,083 $55 $(3)$55,342 
Less: Restricted cash, cash equivalents, and marketable securities (2)(321)
Total cash, cash equivalents, and marketable securities$55,021 
 December 31, 2020
  
Cost or
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Total
Estimated
Fair Value
Cash$10,063 $— $— $10,063 
Level 1 securities:
Money market funds27,430 — — 27,430 
Equity securities (1)617 
Level 2 securities:
Foreign government and agency securities5,130 1 — 5,131 
U.S. government and agency securities7,410 30 (1)7,439 
Corporate debt securities29,684 305 (1)29,988 
Asset-backed securities3,206 32 (3)3,235 
Other fixed income securities701 9 — 710 
Equity securities (1)40 
$83,624 $377 $(5)$84,653 
Less: Restricted cash, cash equivalents, and marketable securities (2)(257)
Total cash, cash equivalents, and marketable securities$84,396 
___________________
(1)The related unrealized gain (loss) recorded in “Other income (expense), net” was $448 million for the year ended December 31, 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 7 — Commitments and Contingencies.”
Summary of Gross Realized Gains (Losses) on Investments
The following table summarizes gross gains and gross losses realized on sales of available-for-sale fixed income marketable securities (in millions):
Year Ended December 31,
201820192020
Realized gains$2 $11 $92 
Realized losses9 7 56 
Summary of Contractual Maturities of Investments
The following table summarizes the remaining contractual maturities of our cash equivalents and marketable fixed income securities as of December 31, 2020 (in millions):
Amortized
Cost		Estimated
Fair Value
Due within one year$52,838 $52,850 
Due after one year through five years17,222 17,546 
Due after five years through ten years857 863 
Due after ten years2,644 2,674 
Total$73,561 $73,933 
Actual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions.
Consolidated Statements of Cash Flow Reconciliation - Cash and Cash Equivalents
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, 2019December 31, 2020
Cash and cash equivalents$36,092 $42,122 
Restricted cash included in accounts receivable, net and other276 233 
Restricted cash included in other assets42 22 
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows$36,410 $42,377 
Consolidated Statements of Cash Flow Reconciliation - 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, 2019December 31, 2020
Cash and cash equivalents$36,092 $42,122 
Restricted cash included in accounts receivable, net and other276 233 
Restricted cash included in other assets42 22 
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows$36,410 $42,377 
v3.20.4
Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment, at Cost
Property and equipment, at cost, consisted of the following (in millions):
 
 December 31,
 20192020
Gross property and equipment (1):
Land and buildings$39,223 $57,324 
Equipment71,310 97,224 
Other assets3,111 3,772 
Construction in progress6,036 15,228 
Gross property and equipment119,680 173,548 
Total accumulated depreciation and amortization (1)46,975 60,434 
Total property and equipment, net$72,705 $113,114 
__________________
(1)Includes the original cost and accumulated depreciation of fully-depreciated assets.
v3.20.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Lease, Cost
Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions):
 Year Ended December 31,
 20192020
Operating lease cost$3,669 $5,019 
Finance lease cost:
Amortization of lease assets10,094 8,452 
Interest on lease liabilities695 617 
Finance lease cost10,789 9,069 
Variable lease cost966 1,238 
Total lease cost$15,424 $15,326 
Other Operating and Finance Lease Information
Other information about lease amounts recognized in our consolidated financial statements is as follows:
 December 31, 2019December 31, 2020
 
Weighted-average remaining lease term – operating leases11.511.3
Weighted-average remaining lease term – finance leases5.56.2
Weighted-average discount rate – operating leases3.1 %2.5 %
Weighted-average discount rate – finance leases2.7 %2.1 %
Operating and Finance Lease Liability Reconciliation
Our lease liabilities were as follows (in millions):
December 31, 2019
 Operating LeasesFinance LeasesTotal
Gross lease liabilities$31,963 $28,875 $60,838 
Less: imputed interest(6,128)(1,896)(8,024)
Present value of lease liabilities25,835 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 
December 31, 2020
 Operating LeasesFinance LeasesTotal
Gross lease liabilities$46,164 $30,437 $76,601 
Less: imputed interest(7,065)(2,003)(9,068)
Present value of lease liabilities39,099 28,434 67,533 
Less: current portion of lease liabilities(4,586)(10,374)(14,960)
Total long-term lease liabilities$34,513 $18,060 $52,573 
v3.20.4
Acquisitions, Goodwill, and Acquired Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]  
Summary of Goodwill Activity The following summarizes our goodwill activity in 2019 and 2020 by segment (in millions):
North
America		InternationalAWSConsolidated
Goodwill - January 1, 2019$12,191 $1,270 $1,087 $14,548 
New acquisitions 71 29 89 189 
Other adjustments (1)2 1 14 17 
Goodwill - December 31, 201912,264 1,300 1,190 14,754 
New acquisitions204 6 2 212 
Other adjustments (1)59 (18)10 51 
Goodwill - December 31, 2020$12,527 $1,288 $1,202 $15,017 
 ___________________
(1)Primarily includes changes in foreign exchange rates.
Schedule of Acquired Finite-Lived Intangible Assets by Major Class
Acquired identifiable intangible assets are valued primarily by using discounted cash flows. These assets are included within “Other assets” on our consolidated balance sheets and consist of the following (in millions):
 
 December 31,
 20192020
  
Acquired
Intangibles,
Gross (1)		Accumulated
Amortization (1)		Acquired
Intangibles,
Net		Acquired
Intangibles,
Gross (1)		Accumulated
Amortization (1)		Acquired
Intangibles,
Net		Weighted
Average Life
Remaining
Finite-lived intangible assets (2):
Marketing-related$2,303 $(340)$1,963 $2,289 $(445)$1,844 20.0
Contract-based1,680 (302)1,378 1,917 (418)1,499 11.0
Technology- and content-based1,005 (477)528 948 (555)393 3.3
Customer-related282 (130)152 179 (77)102 4.0
Total finite-lived intangible assets$5,270 $(1,249)$4,021 $5,333 $(1,495)$3,838 14.4
IPR&D and other (3)$28 $28 $1,143 $1,143 
Total acquired intangibles $5,298 $(1,249)$4,049 $6,476 $(1,495)$4,981 
 ___________________
(1)Excludes the original cost and accumulated amortization of fully-amortized intangibles.
(2)Finite-lived intangible assets have estimated useful lives of between one and twenty-five years, and are being amortized to operating expenses on a straight-line basis.
(3)Intangible assets acquired in a business combination that are in-process and used in research and development activities are considered indefinite-lived until the completion or abandonment of the research and development efforts. Once the research and development efforts are completed, we determine the useful life and begin amortizing the assets.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense Expected future amortization expense of acquired finite-lived intangible assets as of December 31, 2020 is as follows (in millions):
 
Year Ended December 31,
2021$464 
2022430 
2023368 
2024303 
2025251 
Thereafter2,022 
$3,838 
v3.20.4
Debt (Tables)
 12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Long-term Debt Obligations Our total long-term debt obligations are as follows (in millions):
Maturities (1)Stated Interest RatesEffective Interest RatesDecember 31, 2019December 31, 2020
2012 Notes issuance of $3.0 billion
20222.50%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
2023 - 2057
2.40% - 5.20%
2.56% - 4.33%
17,000 16,000 
2020 Notes issuance of $10.0 billion
2023 - 2060
0.40% - 2.70%
0.56% - 2.77%
— 10,000 
Credit Facility740 338 
Other long-term debt830 586 
Total face value of long-term debt24,820 33,174 
Unamortized discount and issuance costs, net(101)(203)
Less current portion of long-term debt(1,305)(1,155)
Long-term debt$23,414 $31,816 
___________________
(1)The weighted average remaining lives of the 2012, 2014, 2017, and 2020 Notes were 1.9, 11.8, 16.2, and 18.7 years as of December 31, 2020. The combined weighted average remaining life of the Notes was 15.8 years as of December 31, 2020.
Future Principal Payments for Debt
As of December 31, 2020, future principal payments for our total long-term debt were as follows (in millions):
Year Ended December 31,
2021$1,156 
20221,629 
20232,283 
20243,355 
20252,251 
Thereafter22,500 
$33,174 
v3.20.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 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 December 31, 2020 (in millions):
 Year Ended December 31,  
 20212022202320242025ThereafterTotal
Long-term debt principal and interest$2,187 $2,622 $3,219 $4,272 $3,058 $35,680 $51,038 
Operating lease liabilities5,600 5,184 4,743 4,356 3,951 22,330 46,164 
Finance lease liabilities, including interest10,778 7,246 3,456 1,389 1,035 6,533 30,437 
Financing obligations, including interest227 230 233 237 240 3,751 4,918 
Leases not yet commenced1,010 1,738 1,876 1,973 1,951 20,321 28,869 
Unconditional purchase obligations (1)3,869 3,760 3,367 3,141 2,213 136 16,486 
Other commitments (2)(3)3,671 2,386 945 783 661 8,351 16,797 
Total commitments$27,342 $23,166 $17,839 $16,151 $13,109 $97,102 $194,709 
___________________
(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 that are under construction, asset retirement obligations, and liabilities associated with digital media content agreements with initial terms greater than one year.
(3)Excludes approximately $2.8 billion of accrued tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any.
v3.20.4
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Expense
Stock-based compensation expense is as follows (in millions):
Year Ended December 31,
201820192020
Cost of sales$73 $149 $283 
Fulfillment1,121 1,182 1,357 
Technology and content2,888 3,725 5,061 
Marketing769 1,135 1,710 
General and administrative567 673 797 
Total stock-based compensation expense (1)$5,418 $6,864 $9,208 
___________________
(1)The related tax benefits were $1.1 billion, $1.4 billion, and $1.9 billion for 2018, 2019, and 2020.
Summary of Restricted Stock Unit Activity
The following table summarizes our restricted stock unit activity (in millions):
Number of UnitsWeighted Average
Grant-Date
Fair Value
Outstanding as of January 1, 201820.1 $725 
Units granted5.0 1,522 
Units vested(7.1)578 
Units forfeited(2.1)862 
Outstanding as of December 31, 201815.9 1,024 
Units granted6.7 1,808 
Units vested(6.6)827 
Units forfeited(1.7)1,223 
Outstanding as of December 31, 201914.3 1,458 
Units granted8.0 2,373 
Units vested(5.8)1,239 
Units forfeited(1.3)1,642 
Outstanding as of December 31, 202015.2 2,004 
Scheduled Vesting of Outstanding Restricted Stock Units
Scheduled vesting for outstanding restricted stock units as of December 31, 2020, is as follows (in millions):
 Year Ended    
 20212022202320242025ThereafterTotal
Scheduled vesting — restricted stock units5.7 5.4 2.7 1.2 0.1 0.1 15.2 
v3.20.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Components of Provision for Income Taxes, Net
The components of the provision for income taxes, net are as follows (in millions):
 Year Ended December 31,
201820192020
U.S. Federal:
Current$(129)$162 $1,835 
Deferred565 914 (151)
Total436 1,076 1,684 
U.S. State:
Current322 276 626 
Deferred5 8 (190)
Total327 284 436 
International:
Current563 1,140 956 
Deferred(129)(126)(213)
Total434 1,014 743 
Provision for income taxes, net$1,197 $2,374 $2,863 
Components of Income Before Income Taxes, Domestic and Foreign
U.S. and international components of income before income taxes are as follows (in millions):
 Year Ended December 31,
 201820192020
U.S.$11,157 $13,285 $20,219 
International104 691 3,959 
Income before income taxes$11,261 $13,976 $24,178 
Effective Income Tax Rate Reconciliation
The items accounting for differences between income taxes computed at the federal statutory rate and the provision recorded for income taxes are as follows (in millions):
 Year Ended December 31,
 201820192020
Income taxes computed at the federal statutory rate$2,365 $2,935 $5,078 
Effect of:
Tax impact of foreign earnings and losses162 453 (538)
State taxes, net of federal benefits263 221 343 
Tax credits(419)(466)(639)
Stock-based compensation (1)(1,086)(850)(1,107)
Foreign income deduction (FDII)(43)(72)(372)
2017 Impact of U.S. Tax Act(157)— — 
Other, net112 153 98 
Total$1,197 $2,374 $2,863 
___________________
(1)Includes non-deductible stock-based compensation and excess tax benefits from stock-based compensation. Our tax provision includes $1.6 billion, $1.4 billion, and $1.8 billion of excess tax benefits from stock-based compensation for 2018, 2019, and 2020.
Deferred Tax Assets and Liabilities
Deferred income tax assets and liabilities are as follows (in millions):
 December 31,
 20192020
Deferred tax assets (1):
Loss carryforwards U.S. - Federal/States188 245 
Loss carryforwards - Foreign3,232 3,876 
Accrued liabilities, reserves, and other expenses1,373 2,457 
Stock-based compensation1,585 2,033 
Depreciation and amortization2,385 1,886 
Operating lease liabilities6,648 10,183 
Other items728 559 
Tax credits772 207 
Total gross deferred tax assets16,911 21,446 
Less valuation allowances (2)(5,754)(5,803)
Deferred tax assets, net of valuation allowances11,157 15,643 
Deferred tax liabilities:
Depreciation and amortization(5,507)(5,508)
Operating lease assets(6,331)(9,539)
Other items(640)(1,462)
Net deferred tax assets (liabilities), net of valuation allowances$(1,321)$(866)
 ___________________
(1)Deferred tax assets are presented after tax effects and net of tax contingencies.
(2)Relates primarily to deferred tax assets that would only be realizable upon the generation of net income in certain foreign taxing jurisdictions.
Reconciliation of Tax Contingencies
The reconciliation of our tax contingencies is as follows (in millions):
 December 31,
 201820192020
Gross tax contingencies – January 1$2,309 $3,414 $3,923 
Gross increases to tax positions in prior periods164 216 88 
Gross decreases to tax positions in prior periods(90)(181)(465)
Gross increases to current period tax positions1,088 707 507 
Settlements with tax authorities(36)(207)(1,207)
Lapse of statute of limitations(21)(26)(26)
Gross tax contingencies – December 31 (1)$3,414 $3,923 $2,820 
 ___________________
(1)As of December 31, 2020, we had approximately $2.8 billion of accrued tax contingencies of which $1.5 billion, if fully recognized, would decrease our effective tax rate. The decrease in our tax contingencies in 2020 was primarily a result of developments in our global tax controversies.
v3.20.4
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Information on Reportable Segments and Reconciliation to Consolidated Net Income (Loss)
Information on reportable segments and reconciliation to consolidated net income (loss) is as follows (in millions):
  
Year Ended December 31,
 201820192020
North America
Net sales$141,366 $170,773 $236,282 
Operating expenses134,099 163,740 227,631 
Operating income$7,267 $7,033 $8,651 
International
Net sales$65,866 $74,723 $104,412 
Operating expenses68,008 76,416 103,695 
Operating income (loss)$(2,142)$(1,693)$717 
AWS
Net sales$25,655 $35,026 $45,370 
Operating expenses18,359 25,825 31,839 
Operating income$7,296 $9,201 $13,531 
Consolidated
Net sales$232,887 $280,522 $386,064 
Operating expenses220,466 265,981 363,165 
Operating income12,421 14,541 22,899 
Total non-operating income (expense)(1,160)(565)1,279 
Provision for income taxes(1,197)(2,374)(2,863)
Equity-method investment activity, net of tax9 (14)16 
Net income$10,073 $11,588 $21,331 
Disaggregation of Revenue
Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):
  
Year Ended December 31,
 201820192020
Net Sales:
Online stores (1)$122,987 $141,247 $197,346 
Physical stores (2)17,224 17,192 16,227 
Third-party seller services (3)42,745 53,762 80,461 
Subscription services (4)14,168 19,210 25,207 
AWS25,655 35,026 45,370 
Other (5)10,108 14,085 21,453 
Consolidated$232,887 $280,522 $386,064 
___________________
(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, videos, games, music, 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 to 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 digital video, audiobook, digital music, e-book, and other non-AWS subscription services.
(5)Primarily includes sales of advertising services, as well as sales related to our other service offerings.
Net Sales Attributed to Countries that Represent a Significant Portion of Consolidated Net Sales Net sales attributed to countries that represent a significant portion of consolidated net sales are as follows (in millions):
 Year Ended December 31,
 201820192020
United States$160,146 $193,636 $263,520 
Germany19,881 22,232 29,565 
United Kingdom14,524 17,527 26,483 
Japan13,829 16,002 20,461 
Rest of world24,507 31,125 46,035 
Consolidated$232,887 $280,522 $386,064 
Reconciliation of Assets from Segment to Consolidated Total segment assets reconciled to consolidated amounts are as follows (in millions):
 December 31,
 201820192020
North America (1)$47,251 $72,277 $108,405 
International (1)19,923 30,709 42,212 
AWS (2)26,340 36,500 47,574 
Corporate69,134 85,762 123,004 
Consolidated$162,648 $225,248 $321,195 
___________________
(1)North America and International segment assets primarily consist of property and equipment, operating leases, inventory, and accounts receivable.
(2)AWS segment assets primarily consist of property and equipment and accounts receivable.
Reconciliation of Property and Equipment from Segments to Consolidated
Property and equipment, net by segment is as follows (in millions):
 December 31,
 201820192020
North America$27,052 $31,719 $54,912 
International8,552 9,566 15,375 
AWS18,851 23,481 32,151 
Corporate7,342 7,939 10,676 
Consolidated$61,797 $72,705 $113,114 
Reconciliation of Property and Equipment Additions and Depreciation from Segments to Consolidated
Total net additions to property and equipment by segment are as follows (in millions):
 Year Ended December 31,
 201820192020
North America (1)$10,749 $11,752 $29,889 
International (1)2,476 3,298 8,072 
AWS (2)9,783 13,058 16,530 
Corporate2,060 1,910 3,485 
Consolidated$25,068 $30,018 $57,976 
___________________
(1)Includes property and equipment added under finance leases of $2.0 billion, $3.8 billion, and $5.6 billion in 2018, 2019, and 2020, and under financing obligations of $3.0 billion, $1.3 billion, and $2.7 billion in 2018, 2019, and 2020.
(2)Includes property and equipment added under finance leases of $8.4 billion, $10.6 billion, and $7.7 billion in 2018, 2019, and 2020, and under financing obligations of $245 million, $0 million, and $130 million in 2018, 2019, and 2020.
Total depreciation and amortization expense, by segment, is as follows (in millions):
 Year Ended December 31,
 201820192020
North America$4,415 $5,106 $6,421 
International1,628 1,886 2,215 
AWS6,095 8,158 7,603 
Consolidated$12,138 $15,150 $16,239 
v3.20.4
Quarterly Results (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information Unaudited quarterly results are as follows (in millions, except per share data):
Year Ended December 31, 2019 (1)
 First
Quarter		Second
Quarter		Third
Quarter		Fourth
Quarter
Net sales$59,700 $63,404 $69,981 $87,437 
Operating income4,420 3,084 3,157 3,879 
Income before income taxes4,401 2,889 2,632 4,053 
Provision for income taxes(836)(257)(494)(786)
Net income3,561 2,625 2,134 3,268 
Basic earnings per share7.24 5.32 4.31 6.58 
Diluted earnings per share7.09 5.22 4.23 6.47 
Shares used in computation of earnings per share:
Basic491 493 495 496 
Diluted502 503 504 505 
 Year Ended December 31, 2020 (1)
 First
Quarter		Second
Quarter		Third
Quarter		Fourth
Quarter
Net sales$75,452 $88,912 $96,145 $125,555 
Operating income3,989 5,843 6,194 6,873 
Income before income taxes3,383 6,221 6,809 7,765 
Provision for income taxes(744)(984)(569)(566)
Net income2,535 5,243 6,331 7,222 
Basic earnings per share5.09 10.50 12.63 14.38 
Diluted earnings per share5.01 10.30 12.37 14.09 
Shares used in computation of earnings per share:
Basic498 500 501 502 
Diluted506 509 512 513 
 ___________________
(1)The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period.
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Description of Business (Details)
 12 Months Ended
Dec. 31, 2020
segment
Accounting Policies [Abstract]  
Number of operating segments 3
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Use of Estimates (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Property, Plant and Equipment [Line Items]                      
Reduction in depreciation and amortization                 $ (25,251) $ (21,789) $ (15,341)
Increase in net income $ 7,222 $ 6,331 $ 5,243 $ 2,535 $ 3,268 $ 2,134 $ 2,625 $ 3,561 $ 21,331 $ 11,588 $ 10,073
Increase in basic earnings per share (in dollars per share) $ 14.38 $ 12.63 $ 10.50 $ 5.09 $ 6.58 $ 4.31 $ 5.32 $ 7.24 $ 42.64 $ 23.46 $ 20.68
Increase in diluted earnings per share (in dollars per share) $ 14.09 $ 12.37 $ 10.30 $ 5.01 $ 6.47 $ 4.23 $ 5.22 $ 7.09 $ 41.83 $ 23.01 $ 20.14
Change in useful life of servers                      
Property, Plant and Equipment [Line Items]                      
Reduction in depreciation and amortization                 $ 2,700    
Increase in net income                 $ 2,000    
Increase in basic earnings per share (in dollars per share)                 $ 4.06    
Increase in diluted earnings per share (in dollars per share)                 $ 3.98    
Servers                      
Property, Plant and Equipment [Line Items]                      
Estimated useful lives of assets                 4 years 3 years  
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Supplemental Cash Flow Information [Abstract]      
Cash paid for interest on debt $ 916 $ 875 $ 854
Cash paid for operating leases 4,475 3,361 0
Cash paid for interest on finance leases 612 647 381
Cash paid for interest on financing obligations 102 39 194
Cash paid for income taxes, net of refunds 1,713 881 1,184
Assets acquired under operating leases 16,217 7,870 0
Property and equipment acquired under finance leases 11,588 13,723 10,615
Property and equipment acquired under build-to-suit arrangements $ 2,267 $ 1,362 $ 3,641
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Calculation of Diluted Shares (Details) - shares
shares in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Accounting Policies [Abstract]                      
Shares used in computation of basic earnings per share 502 501 500 498 496 495 493 491 500 494 487
Total dilutive effect of outstanding stock awards                 10 10 13
Shares used in computation of diluted earnings per share 513 512 509 506 505 504 503 502 510 504 500
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Revenue (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Accounting Policies [Abstract]      
Liability for return allowance $ 859 $ 712 $ 623
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]      
Rights to recover products from customers 852 629 519
Sales Returns and Allowances      
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]      
Additions to allowance for returns 3,500 2,500 2,300
Deductions to allowance for returns $ 3,600 $ 2,500 $ 2,300
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Marketing (Details) - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Accounting Policies [Abstract]      
Advertising and other promotional costs $ 10.9 $ 11.0 $ 8.2
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Other Income (Expense), Net (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Feb. 02, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Accounting Policies [Abstract]        
Valuations and adjustments of equity securities   $ 833 $ 231 $ 145
Derivative [Line Items]        
Foreign currency gains (losses)   35 (20) (206)
Subsequent Event        
Subsequent Event [Line Items]        
Upward adjustments relating to equity investments in private companies $ 1,500      
Gains on equity and equity warrant investments in public companies $ 1,500      
Equity Warrant        
Derivative [Line Items]        
Derivative gains (losses)   $ 1,500 $ 11 $ (131)
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Fair Value of Financial Instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Fair Value, Inputs, Level 2 | Equity Warrant    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair value of warrants $ 3,000 $ 669
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Inventories (Details) - USD ($)
$ in Billions
Dec. 31, 2020
Dec. 31, 2019
Accounting Policies [Abstract]    
Inventory valuation allowance $ 2.3 $ 1.6
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Accounts Receivable, Net and Other (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Accounts receivable, net and other $ 24,542 $ 20,816  
Allowance for doubtful accounts 1,100 718 $ 495
Additions to allowance for doubtful accounts 1,400 1,000 878
Deductions to allowance for doubtful accounts 1,000 793 $ 731
Customer receivables      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Accounts receivable, net and other 14,800 12,600  
Vendor receivables      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Accounts receivable, net and other 4,800 4,200  
Seller receivables      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Accounts receivable, net and other $ 381 $ 863  
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Property and Equipment, Net (Details)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Building    
Property, Plant and Equipment [Line Items]    
Estimated useful lives of assets 40 years  
Servers    
Property, Plant and Equipment [Line Items]    
Estimated useful lives of assets 4 years 3 years
Networking Equipment    
Property, Plant and Equipment [Line Items]    
Estimated useful lives of assets 5 years  
Heavy Equipment    
Property, Plant and Equipment [Line Items]    
Estimated useful lives of assets 10 years  
Minimum | Other Fulfillment Equipment    
Property, Plant and Equipment [Line Items]    
Estimated useful lives of assets 3 years  
Maximum | Other Fulfillment Equipment    
Property, Plant and Equipment [Line Items]    
Estimated useful lives of assets 10 years  
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Leases (Details)
 12 Months Ended
Dec. 31, 2020
Equipment | Minimum  
Lessee, Lease, Description [Line Items]  
Lessee, operating and finance lease, term of contract 1 year
Equipment | Maximum  
Lessee, Lease, Description [Line Items]  
Lessee, operating and finance lease, term of contract 10 years
Property | Minimum  
Lessee, Lease, Description [Line Items]  
Lessee, operating and finance lease, term of contract 1 year
Property | Maximum  
Lessee, Lease, Description [Line Items]  
Lessee, operating and finance lease, term of contract 20 years
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Goodwill and Indefinite-Lived Intangible Assets (Details)
$ in Millions
Apr. 01, 2020
USD ($)
Accounting Policies [Abstract]  
Goodwill and indefinite-lived intangible asset impairment $ 0
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Digital Video and Music Content (Details) - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Accounting Policies [Abstract]    
Weighted average remaining life, capitalized video content 2 years 6 months  
Video and music content, capitalized costs $ 6.8 $ 5.8
Video and music content, expense $ 11.0 $ 7.8
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Investments (Details) - USD ($)
$ in Billions
Dec. 31, 2020
Dec. 31, 2019
Accounting Policies [Abstract]    
Equity investments in private companies $ 2.7 $ 1.5
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Accrued Expenses and Other (Details) - USD ($)
$ in Billions
Dec. 31, 2020
Dec. 31, 2019
Accounting Policies [Abstract]    
Payroll-related liabilities $ 7.6 $ 4.3
Disaggregation of Revenue [Line Items]    
Customer liability 11.6 10.2
Gift card    
Disaggregation of Revenue [Line Items]    
Customer liability $ 4.7 $ 3.3
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Unearned Revenue (Details) - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Accounting Policies [Abstract]    
Customer liability $ 11.6 $ 10.2
Unearned revenue, revenue recognized 7.9  
Unearned revenue, long-term 1.9 $ 2.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01    
Accounting Policies [Abstract]    
Remaining performance obligation, contracts exceeding one year $ 50.0  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Remaining performance obligation, weighted average remaining life 3 years 4 months 24 days  
v3.20.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Foreign Currency (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Accounting Policies [Abstract]      
Transaction gain (loss) arising from intercompany foreign currency transactions $ 118 $ 95 $ (186)
v3.20.4
Financial Instruments - Fair Values on Recurring Basis (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Equity Securities, FV-NI, Gain (Loss) [Abstract]    
Equity securities, unrealized gain (loss) $ 448  
Recurring    
Schedule of Investments [Line Items]    
Cash 10,063 $ 9,776
Cost or Amortized Cost    
Cash, cash equivalents and short-term investments 83,624 55,083
Gross Unrealized Gains    
Short-term investments 377 55
Gross Unrealized Losses    
Cash equivalents and marketable securities (5) (3)
Total Estimated Fair Value    
Cash, cash equivalents and short-term investments 84,653 55,342
Less: Restricted cash, cash equivalents, and marketable securities (257) (321)
Total cash, cash equivalents, and marketable securities 84,396 55,021
Recurring | Level 1 securities    
Total Estimated Fair Value    
Equity securities 617 202
Recurring | Level 1 securities | Money market funds    
Schedule of Investments [Line Items]    
Money market funds 27,430 18,850
Recurring | Level 1 securities | Money market funds | Money market funds    
Schedule of Investments [Line Items]    
Money market funds 27,430  
Recurring | Level 2 securities    
Total Estimated Fair Value    
Equity securities 40 5
Recurring | Level 2 securities | Foreign government and agency securities    
Cost or Amortized Cost    
Cash equivalents and marketable securities 5,130 4,794
Gross Unrealized Gains    
Cash equivalents and marketable securities 1 0
Gross Unrealized Losses    
Cash equivalents and marketable securities 0 0
Total Estimated Fair Value    
Cash equivalents and marketable securities 5,131 4,794
Recurring | Level 2 securities | U.S. government and agency securities    
Cost or Amortized Cost    
Cash equivalents and marketable securities 7,410 7,070
Gross Unrealized Gains    
Cash equivalents and marketable securities 30 11
Gross Unrealized Losses    
Cash equivalents and marketable securities (1) (1)
Total Estimated Fair Value    
Cash equivalents and marketable securities 7,439 7,080
Recurring | Level 2 securities | Corporate debt securities    
Cost or Amortized Cost    
Cash equivalents and marketable securities 29,684 11,845
Gross Unrealized Gains    
Cash equivalents and marketable securities 305 37
Gross Unrealized Losses    
Cash equivalents and marketable securities (1) (1)
Total Estimated Fair Value    
Cash equivalents and marketable securities 29,988 11,881
Recurring | Level 2 securities | Asset-backed securities    
Cost or Amortized Cost    
Cash equivalents and marketable securities 3,206 2,355
Gross Unrealized Gains    
Cash equivalents and marketable securities 32 6
Gross Unrealized Losses    
Cash equivalents and marketable securities (3) (1)
Total Estimated Fair Value    
Cash equivalents and marketable securities 3,235 2,360
Recurring | Level 2 securities | Other fixed income securities    
Cost or Amortized Cost    
Cash equivalents and marketable securities 701 393
Gross Unrealized Gains    
Cash equivalents and marketable securities 9 1
Gross Unrealized Losses    
Cash equivalents and marketable securities 0 0
Total Estimated Fair Value    
Cash equivalents and marketable securities $ 710 $ 394
v3.20.4
Financial Instruments - Gross Gains and Gross Losses Realized on Sales of Available-For-Sale Marketable Securities (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Debt Securities, Available-for-sale, Realized Gain (Loss) [Abstract]      
Realized gains $ 92 $ 11 $ 2
Realized losses $ 56 $ 7 $ 9
v3.20.4
Financial Instruments - Contractual Maturities (Details)
$ in Millions
Dec. 31, 2020
USD ($)
Amortized Cost  
Due within one year $ 52,838
Due after one year through five years 17,222
Due after five years through ten years 857
Due after ten years 2,644
Total 73,561
Estimated Fair Value  
Due within one year 52,850
Due after one year through five years 17,546
Due after five years through ten years 863
Due after ten years 2,674
Total $ 73,933
v3.20.4
Financial Instruments - Reconciliation to Cash Flow (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Reconciliation to Cash Flow [Abstract]        
Cash and cash equivalents $ 42,122 $ 36,092    
Restricted cash included in accounts receivable, net and other 233 276    
Restricted cash included in other assets 22 42    
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 42,377 $ 36,410 $ 32,173 $ 21,856
v3.20.4
Property and Equipment - Components (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Property, Plant and Equipment [Line Items]      
Gross property and equipment $ 173,548 $ 119,680  
Total accumulated depreciation and amortization 60,434 46,975  
Total property and equipment, net 113,114 72,705 $ 61,797
Land and buildings      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 57,324 39,223  
Equipment      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 97,224 71,310  
Other assets      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 3,772 3,111  
Construction in progress      
Property, Plant and Equipment [Line Items]      
Gross property and equipment $ 15,228 $ 6,036  
v3.20.4
Property and Equipment - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Property, Plant and Equipment [Abstract]      
Depreciation and amortization expense $ 16,239 $ 15,150 $ 12,138
Amortization of capital lease assets     $ 7,300
Amortization of lease assets $ 8,452 $ 10,094  
v3.20.4
Leases - Additional Information (Details) - USD ($)
$ in Billions
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]    
Finance lease asset $ 68.1 $ 57.4
Accumulated amortization associated with finance leases $ 36.5 $ 30.0
v3.20.4
Leases - Lease Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Lease, Cost [Abstract]    
Operating lease cost $ 5,019 $ 3,669
Finance lease cost:    
Amortization of lease assets 8,452 10,094
Interest on lease liabilities 617 695
Finance lease cost 9,069 10,789
Variable lease cost 1,238 966
Total lease cost $ 15,326 $ 15,424
v3.20.4
Leases - Other Operating and Finance Lease Information (Details)
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]    
Weighted-average remaining lease term – operating leases 11 years 3 months 18 days 11 years 6 months
Weighted-average remaining lease term – finance leases 6 years 2 months 12 days 5 years 6 months
Weighted-average discount rate – operating leases 2.50% 3.10%
Weighted-average discount rate – finance leases 2.10% 2.70%
v3.20.4
Leases - Operating and Finance Lease Reconciliation (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]    
Total $ 46,164 $ 31,963
Total 30,437 28,875
Gross lease liabilities 76,601 60,838
Imputed interest - operating leases (7,065) (6,128)
Imputed interest - finance leases (2,003) (1,896)
Imputed interest (9,068) (8,024)
Present value of operating leases 39,099 25,835
Present value of finance leases 28,434 26,979
Present value of lease liabilities 67,533 52,814
Current portion of operating leases (4,586) (3,139)
Current portion of finance leases (10,374) (9,884)
Current portion of lease liabilities (14,960) (13,023)
Total long-term operating lease liabilities 34,513 22,696
Total long-term finance lease liabilities 18,060 17,095
Long-term lease liabilities $ 52,573 $ 39,791
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] us-gaap:AccruedLiabilitiesCurrent us-gaap:AccruedLiabilitiesCurrent
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] us-gaap:AccruedLiabilitiesCurrent us-gaap:AccruedLiabilitiesCurrent
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] amzn:LeaseLiabilityNoncurrent amzn:LeaseLiabilityNoncurrent
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] amzn:LeaseLiabilityNoncurrent amzn:LeaseLiabilityNoncurrent
v3.20.4
Acquisitions, Goodwill, and Acquired Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 11, 2018
Apr. 12, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Business Acquisition [Line Items]          
Amortization expense for acquired intangibles     $ 509 $ 565 $ 475
Ring Inc.          
Business Acquisition [Line Items]          
Acquisitions, net of cash acquired   $ 839      
PillPack, Inc.          
Business Acquisition [Line Items]          
Acquisitions, net of cash acquired $ 753        
Other Acquisitions          
Business Acquisition [Line Items]          
Aggregate purchase price     1,200 $ 315 $ 57
Acquisitions, in-process research and development intangible asset     $ 1,100    
v3.20.4
Acquisitions, Goodwill, and Acquired Intangible Assets - Summary of Goodwill Activity by Segment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Goodwill [Roll Forward]    
Goodwill, balance at beginning of period $ 14,754 $ 14,548
New acquisitions 212 189
Other adjustments 51 17
Goodwill, balance at end of period 15,017 14,754
North America    
Goodwill [Roll Forward]    
Goodwill, balance at beginning of period 12,264 12,191
New acquisitions 204 71
Other adjustments 59 2
Goodwill, balance at end of period 12,527 12,264
International    
Goodwill [Roll Forward]    
Goodwill, balance at beginning of period 1,300 1,270
New acquisitions 6 29
Other adjustments (18) 1
Goodwill, balance at end of period 1,288 1,300
AWS    
Goodwill [Roll Forward]    
Goodwill, balance at beginning of period 1,190 1,087
New acquisitions 2 89
Other adjustments 10 14
Goodwill, balance at end of period $ 1,202 $ 1,190
v3.20.4
Acquisitions, Goodwill, and Acquired Intangible Assets - Acquired Intangible Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Acquired Finite-Lived Intangible Assets [Line Items]    
Acquired finite-lived intangible assets, gross $ 5,333 $ 5,270
Accumulated amortization (1,495) (1,249)
Acquired finite-lived intangible assets, net 3,838 4,021
Acquired indefinite-lived intangible assets - IPR&D and other 1,143 28
Acquired Intangibles, Gross 6,476 5,298
Acquired Intangibles, Net $ 4,981 4,049
Weighted Average Life Remaining 14 years 4 months 24 days  
Minimum    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, estimated useful life 1 year  
Maximum    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, estimated useful life 25 years  
Marketing-related    
Acquired Finite-Lived Intangible Assets [Line Items]    
Acquired finite-lived intangible assets, gross $ 2,289 2,303
Accumulated amortization (445) (340)
Acquired finite-lived intangible assets, net $ 1,844 1,963
Weighted Average Life Remaining 20 years  
Contract-based    
Acquired Finite-Lived Intangible Assets [Line Items]    
Acquired finite-lived intangible assets, gross $ 1,917 1,680
Accumulated amortization (418) (302)
Acquired finite-lived intangible assets, net $ 1,499 1,378
Weighted Average Life Remaining 11 years  
Technology- and content-based    
Acquired Finite-Lived Intangible Assets [Line Items]    
Acquired finite-lived intangible assets, gross $ 948 1,005
Accumulated amortization (555) (477)
Acquired finite-lived intangible assets, net $ 393 528
Weighted Average Life Remaining 3 years 3 months 18 days  
Customer-related    
Acquired Finite-Lived Intangible Assets [Line Items]    
Acquired finite-lived intangible assets, gross $ 179 282
Accumulated amortization (77) (130)
Acquired finite-lived intangible assets, net $ 102 $ 152
Weighted Average Life Remaining 4 years  
v3.20.4
Acquisitions, Goodwill, and Acquired Intangible Assets - Expected Future Amortization Expense of Acquired Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Year Ended December 31,    
2021 $ 464  
2022 430  
2023 368  
2024 303  
2025 251  
Thereafter 2,022  
Acquired finite-lived intangible assets, net $ 3,838 $ 4,021
v3.20.4
Debt - Additional Information (Details)
 1 Months Ended 12 Months Ended
Apr. 30, 2018
USD ($)
extension
Oct. 31, 2016
USD ($)
Dec. 31, 2020
USD ($)
Jun. 30, 2020
USD ($)
Dec. 31, 2019
USD ($)
Debt Instrument [Line Items]          
Total face value of long-term debt     $ 33,174,000,000   $ 24,820,000,000
Commercial Paper          
Debt Instrument [Line Items]          
Commercial paper, maximum borrowing capacity $ 7,000,000,000.0     $ 10,000,000,000.0  
Credit term 397 days        
Commercial paper     $ 725,000,000   0
Weighted average effective interest rate     0.11%    
Senior Notes          
Debt Instrument [Line Items]          
Total face value of long-term debt     $ 32,200,000,000    
Issuance amount       $ 10,000,000,000.0  
Estimated fair value of notes     37,700,000,000   26,200,000,000
Line of Credit and Other Long-term Debt          
Debt Instrument [Line Items]          
Total face value of long-term debt     924,000,000   1,600,000,000
Credit Facility | Revolving Credit Facility          
Debt Instrument [Line Items]          
Total face value of long-term debt     338,000,000   740,000,000
Credit Facility | October 2016 Revolving Credit Facility | Revolving Credit Facility          
Debt Instrument [Line Items]          
Maximum borrowing capacity   $ 500,000,000 740,000,000    
Commitment fee percentage   0.50%      
Borrowings outstanding     $ 338,000,000   $ 740,000,000
Weighted average interest rate     3.00%   3.40%
Collateral amount     $ 398,000,000   $ 852,000,000
Credit Facility | October 2016 Revolving Credit Facility | Revolving Credit Facility | LIBOR          
Debt Instrument [Line Items]          
Basis spread on variable rate (as a percent)     1.40%    
Credit Facility | April 2018 Revolving Credit Facility | Revolving Credit Facility          
Debt Instrument [Line Items]          
Maximum borrowing capacity $ 7,000,000,000.0        
Commitment fee percentage 0.04%        
Borrowings outstanding     $ 0   0
Credit Agreement, number of extensions | extension 3        
Credit Agreement, additional term 1 year        
Credit Facility | April 2018 Revolving Credit Facility | Revolving Credit Facility | LIBOR          
Debt Instrument [Line Items]          
Basis spread on variable rate (as a percent) 0.50%        
Credit Facility | April 2018 Revolving Credit Facility | Letter of credit          
Debt Instrument [Line Items]          
Unused capacity     5,100,000,000    
Other long-term debt          
Debt Instrument [Line Items]          
Total face value of long-term debt     $ 586,000,000   $ 830,000,000
Weighted average interest rate     2.90%   4.10%
v3.20.4
Debt - Long-Term Debt Obligations (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Jun. 30, 2020
Dec. 31, 2019
Debt Instrument [Line Items]      
Total face value of long-term debt $ 33,174,000,000   $ 24,820,000,000
Less current portion of long-term debt (1,155,000,000)   (1,305,000,000)
Long-term debt 31,816,000,000   23,414,000,000
Senior Notes      
Debt Instrument [Line Items]      
Issuance amount   $ 10,000,000,000.0  
Total face value of long-term debt 32,200,000,000    
Unamortized discount and issuance costs, net $ (203,000,000)   (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 $ 3,000,000,000.0    
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 1 year 10 months 24 days    
Senior Notes | 2014 Notes issuance of $6.0 billion      
Debt Instrument [Line Items]      
Issuance amount $ 6,000,000,000.0    
Total face value of long-term debt $ 5,000,000,000   5,000,000,000
Weighted average remaining lives term 11 years 9 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 $ 17,000,000,000.0    
Total face value of long-term debt $ 16,000,000,000   17,000,000,000
Weighted average remaining lives term 16 years 2 months 12 days    
Senior Notes | 2017 Notes issuance of $17.0 billion | Minimum      
Debt Instrument [Line Items]      
Stated Interest Rates 2.40%    
Effective Interest Rates 2.56%    
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 $ 10,000,000,000.0    
Total face value of long-term debt $ 10,000,000,000   0
Weighted average remaining lives term 18 years 8 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 $ 338,000,000   740,000,000
Other long-term debt      
Debt Instrument [Line Items]      
Total face value of long-term debt $ 586,000,000   $ 830,000,000
v3.20.4
Debt - Future Principal Payment for Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Year Ended December 31,    
2021 $ 1,156  
2022 1,629  
2023 2,283  
2024 3,355  
2025 2,251  
Thereafter 22,500  
Long-term Debt, Total $ 33,174 $ 24,820
v3.20.4
Commitments and Contingencies - Principal Contractual Commitments Excluding Open Orders (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Long-term debt principal and interest        
2021 $ 2,187      
2022 2,622      
2023 3,219      
2024 4,272      
2025 3,058      
Thereafter 35,680      
Total 51,038      
Operating lease liabilities        
2021 5,600      
2022 5,184      
2023 4,743      
2024 4,356      
2025 3,951      
Thereafter 22,330      
Total 46,164 $ 31,963    
Finance lease liabilities, including interest        
2021 10,778      
2022 7,246      
2023 3,456      
2024 1,389      
2025 1,035      
Thereafter 6,533      
Total 30,437 28,875    
Financing obligations, including interest        
2021 227      
2022 230      
2023 233      
2024 237      
2025 240      
Thereafter 3,751      
Total 4,918      
Leases not yet commenced        
2021 1,010      
2022 1,738      
2023 1,876      
2024 1,973      
2025 1,951      
Thereafter 20,321      
Total 28,869      
Unconditional purchase obligations        
2021 3,869      
2022 3,760      
2023 3,367      
2024 3,141      
2025 2,213      
Thereafter 136      
Total 16,486      
Other commitments        
2021 3,671      
2022 2,386      
2023 945      
2024 783      
2025 661      
Thereafter 8,351      
Total 16,797      
Total commitments        
2021 27,342      
2022 23,166      
2023 17,839      
2024 16,151      
2025 13,109      
Thereafter 97,102      
Total 194,709      
Accrued tax contingencies $ 2,820 $ 3,923 $ 3,414 $ 2,309
v3.20.4
Commitments and Contingencies - Pledged Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]    
Pledged or restricted cash, cash equivalents, marketable securities, and other assets $ 875 $ 994
v3.20.4
Commitments and Contingencies - Legal Proceedings (Details) - Legal Proceedings with Eolas Technologies, Inc. - Pending Litigation
$ in Millions
Feb. 28, 2017
USD ($)
Minimum  
Loss Contingencies [Line Items]  
Estimate of possible loss $ 130
Maximum  
Loss Contingencies [Line Items]  
Estimate of possible loss $ 250
v3.20.4
Stockholders' Equity - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Feb. 29, 2016
Class of Stock [Line Items]        
Preferred stock, authorized (in shares) 500,000,000 500,000,000    
Preferred stock, par value (in usd per share) $ 0.01 $ 0.01    
Preferred stock, outstanding (in shares) 0 0    
Common shares outstanding plus underlying outstanding stock awards 518,000,000 512,000,000 507,000,000  
Repurchases of common stock $ 0 $ 0 $ 0  
Net unrecognized compensation cost related to unvested stock-based compensation arrangements $ 13,300,000,000      
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 2 months 12 days      
Estimated forfeiture rate 27.00%      
Common stock available for future issuance to employees (in shares) 102,000,000      
Restricted Stock Units        
Class of Stock [Line Items]        
Fair value of units vested $ 15,500,000,000 $ 11,700,000,000 $ 11,400,000,000  
Minimum        
Class of Stock [Line Items]        
Award vesting period 2 years      
Maximum        
Class of Stock [Line Items]        
Award vesting period 5 years      
February 2016 Program        
Class of Stock [Line Items]        
Stock repurchase, authorized amount       $ 5,000,000,000.0
v3.20.4
Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 9,208 $ 6,864 $ 5,418
Tax benefits from stock-based compensation expense 1,900 1,400 1,100
Cost of sales      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 283 149 73
Fulfillment      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 1,357 1,182 1,121
Technology and content      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 5,061 3,725 2,888
Marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 1,710 1,135 769
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 797 $ 673 $ 567
v3.20.4
Stockholders' Equity - Restricted Stock Unit Activity (Details) - Restricted Stock Units - $ / shares
shares in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Number of Units      
Beginning balance (in shares) 14.3 15.9 20.1
Units granted (in shares) 8.0 6.7 5.0
Units vested (in shares) (5.8) (6.6) (7.1)
Units forfeited (in shares) (1.3) (1.7) (2.1)
Ending balance (in shares) 15.2 14.3 15.9
Weighted Average Grant-Date Fair Value      
Beginning Balance (in dollars per share) $ 1,458 $ 1,024 $ 725
Units granted (in dollars per share) 2,373 1,808 1,522
Units vested (in dollars per share) 1,239 827 578
Units forfeited (in dollars per share) 1,642 1,223 862
Ending Balance (in dollars per share) $ 2,004 $ 1,458 $ 1,024
v3.20.4
Stockholders' Equity - Scheduled Vesting for Outstanding Restricted Stock Units (Details) - Restricted Stock Units - shares
shares in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Scheduled vesting — restricted stock units        
2021 5.7      
2022 5.4      
2023 2.7      
2024 1.2      
2025 0.1      
Thereafter 0.1      
Total 15.2 14.3 15.9 20.1
v3.20.4
Income Taxes - Additional Information (Details)
€ in Millions, $ in Millions
 3 Months Ended 12 Months Ended
Oct. 04, 2017
EUR (€)
Dec. 31, 2020
USD ($)
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Income Tax Disclosure [Abstract]                        
Provision for income taxes, net   $ 566 $ 569 $ 984 $ 744 $ 786 $ 494 $ 257 $ 836 $ 2,863 $ 2,374 $ 1,197
Cash taxes paid, net of refunds                   1,713 881 1,184
Income Taxes [Line Items]                        
Accrued interest and penalties, net of federal income tax benefit, related to tax contingencies   83       $ 131       83 131  
Interest and penalties, net of federal income tax benefit                   (48) 4 20
International                        
Income Tax Disclosure [Abstract]                        
Provision for income taxes, net                   743 $ 1,014 $ 434
Income Taxes [Line Items]                        
Net operating loss carryforwards   $ 13,400               $ 13,400    
International | Luxembourg Tax Administration                        
Income Taxes [Line Items]                        
Tax examination, estimate of additional tax expense | € € 250                      
v3.20.4
Income Taxes - Components of Provision for Income Taxes, Net (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
International:                      
Provision for income taxes, net $ 566 $ 569 $ 984 $ 744 $ 786 $ 494 $ 257 $ 836 $ 2,863 $ 2,374 $ 1,197
U.S. Federal                      
U.S. Federal:                      
Current                 1,835 162 (129)
Deferred                 (151) 914 565
International:                      
Provision for income taxes, net                 1,684 1,076 436
U.S. State                      
U.S. State:                      
Current                 626 276 322
Deferred                 (190) 8 5
International:                      
Provision for income taxes, net                 436 284 327
International                      
International:                      
Current                 956 1,140 563
Deferred                 (213) (126) (129)
Provision for income taxes, net                 $ 743 $ 1,014 $ 434
v3.20.4
Income Taxes - U.S. and International Components of Income Before Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]                      
U.S.                 $ 20,219 $ 13,285 $ 11,157
International                 3,959 691 104
Income before income taxes $ 7,765 $ 6,809 $ 6,221 $ 3,383 $ 4,053 $ 2,632 $ 2,889 $ 4,401 $ 24,178 $ 13,976 $ 11,261
v3.20.4
Income Taxes - Items Accounting for Differences Between Income Taxes Computed at Federal Statutory Rate and Provision Recorded for Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]                      
Income taxes computed at the federal statutory rate                 $ 5,078 $ 2,935 $ 2,365
Effect of:                      
Tax impact of foreign earnings and losses                 (538) 453 162
State taxes, net of federal benefits                 343 221 263
Tax credits                 (639) (466) (419)
Stock-based compensation                 (1,107) (850) (1,086)
Foreign income deduction (FDII)                 (372) (72) (43)
2017 Impact of U.S. Tax Act                 0 0 (157)
Other, net                 98 153 112
Provision for income taxes, net $ 566 $ 569 $ 984 $ 744 $ 786 $ 494 $ 257 $ 836 2,863 2,374 1,197
Excess tax benefits from stock-based compensation                 $ 1,800 $ 1,400 $ 1,600
v3.20.4
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Deferred tax assets:    
Loss carryforwards U.S. - Federal/States $ 245 $ 188
Loss carryforwards - Foreign 3,876 3,232
Accrued liabilities, reserves, and other expenses 2,457 1,373
Stock-based compensation 2,033 1,585
Depreciation and amortization 1,886 2,385
Operating lease liabilities 10,183 6,648
Other items 559 728
Tax credits 207 772
Total gross deferred tax assets 21,446 16,911
Less valuation allowance (5,803) (5,754)
Deferred tax assets, net of valuation allowances 15,643 11,157
Deferred tax liabilities:    
Depreciation and amortization (5,508) (5,507)
Operating lease assets (9,539) (6,331)
Other items (1,462) (640)
Net deferred tax assets (liabilities), net of valuation allowances $ (866) $ (1,321)
v3.20.4
Income Taxes - Reconciliation of Tax Contingencies (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Gross tax contingencies – beginning of period $ 3,923 $ 3,414 $ 2,309
Gross increases to tax positions in prior periods 88 216 164
Gross decreases to tax positions in prior periods (465) (181) (90)
Gross increases to current period tax positions 507 707 1,088
Settlements with tax authorities (1,207) (207) (36)
Lapse of statute of limitations (26) (26) (21)
Gross tax contingencies - end of period 2,820 $ 3,923 $ 3,414
Tax contingencies, that if fully recognized, would decrease our effective tax rate $ 1,500    
v3.20.4
Segment Information - Additional Information (Details)
$ in Billions
 12 Months Ended
Dec. 31, 2020
USD ($)
segment
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Segment Reporting [Abstract]      
Number of operating segments | segment 3    
United States      
Segment Reporting Information [Line Items]      
Property and equipment, net and operating leases $ 109.5 $ 69.8 $ 45.1
Rest of world      
Segment Reporting Information [Line Items]      
Property and equipment, net and operating leases $ 41.2 $ 28.0 $ 16.7
v3.20.4
Segment Information - Reportable Segments and Reconciliation to Consolidated Net Income (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]                      
Total net sales $ 125,555 $ 96,145 $ 88,912 $ 75,452 $ 87,437 $ 69,981 $ 63,404 $ 59,700 $ 386,064 $ 280,522 $ 232,887
Operating expenses                 363,165 265,981 220,466
Operating income (loss) 6,873 6,194 5,843 3,989 3,879 3,157 3,084 4,420 22,899 14,541 12,421
Total non-operating income (expense)                 1,279 (565) (1,160)
Provision for income taxes (566) (569) (984) (744) (786) (494) (257) (836) (2,863) (2,374) (1,197)
Equity-method investment activity, net of tax                 16 (14) 9
Net income $ 7,222 $ 6,331 $ 5,243 $ 2,535 $ 3,268 $ 2,134 $ 2,625 $ 3,561 21,331 11,588 10,073
North America                      
Segment Reporting Information [Line Items]                      
Total net sales                 236,282 170,773 141,366
Operating expenses                 227,631 163,740 134,099
Operating income (loss)                 8,651 7,033 7,267
International                      
Segment Reporting Information [Line Items]                      
Total net sales                 104,412 74,723 65,866
Operating expenses                 103,695 76,416 68,008
Operating income (loss)                 717 (1,693) (2,142)
AWS                      
Segment Reporting Information [Line Items]                      
Total net sales                 45,370 35,026 25,655
Operating expenses                 31,839 25,825 18,359
Operating income (loss)                 $ 13,531 $ 9,201 $ 7,296
v3.20.4
Segment Information - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Disaggregation of Revenue [Line Items]                      
Total net sales $ 125,555 $ 96,145 $ 88,912 $ 75,452 $ 87,437 $ 69,981 $ 63,404 $ 59,700 $ 386,064 $ 280,522 $ 232,887
Online stores                      
Disaggregation of Revenue [Line Items]                      
Total net sales                 197,346 141,247 122,987
Physical stores                      
Disaggregation of Revenue [Line Items]                      
Total net sales                 16,227 17,192 17,224
Third-party seller services                      
Disaggregation of Revenue [Line Items]                      
Total net sales                 80,461 53,762 42,745
Subscription services                      
Disaggregation of Revenue [Line Items]                      
Total net sales                 25,207 19,210 14,168
AWS                      
Disaggregation of Revenue [Line Items]                      
Total net sales                 45,370 35,026 25,655
Other                      
Disaggregation of Revenue [Line Items]                      
Total net sales                 $ 21,453 $ 14,085 $ 10,108
v3.20.4
Segment Information Net Sales Attributed to Countries Representing Portion of Consolidated Net Sales (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting, Revenue Reconciling Item                      
Total net sales $ 125,555 $ 96,145 $ 88,912 $ 75,452 $ 87,437 $ 69,981 $ 63,404 $ 59,700 $ 386,064 $ 280,522 $ 232,887
United States                      
Segment Reporting, Revenue Reconciling Item                      
Total net sales                 263,520 193,636 160,146
Germany                      
Segment Reporting, Revenue Reconciling Item                      
Total net sales                 29,565 22,232 19,881
United Kingdom                      
Segment Reporting, Revenue Reconciling Item                      
Total net sales                 26,483 17,527 14,524
Japan                      
Segment Reporting, Revenue Reconciling Item                      
Total net sales                 20,461 16,002 13,829
Rest of world                      
Segment Reporting, Revenue Reconciling Item                      
Total net sales                 $ 46,035 $ 31,125 $ 24,507
v3.20.4
Segment Information - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets $ 321,195 $ 225,248 $ 162,648
Operating Segments | North America      
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets 108,405 72,277 47,251
Operating Segments | International      
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets 42,212 30,709 19,923
Operating Segments | AWS      
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets 47,574 36,500 26,340
Corporate      
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets $ 123,004 $ 85,762 $ 69,134
v3.20.4
Segment Information - Reconciliation of Property and Equipment from Segments to Consolidated (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Property and equipment, net $ 113,114 $ 72,705 $ 61,797
Operating Segments | North America      
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Property and equipment, net 54,912 31,719 27,052
Operating Segments | International      
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Property and equipment, net 15,375 9,566 8,552
Operating Segments | AWS      
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Property and equipment, net 32,151 23,481 18,851
Corporate      
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Property and equipment, net $ 10,676 $ 7,939 $ 7,342
v3.20.4
Segment Information - Reconciliation of Property and Equipment Additions from Segments to Consolidated (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]      
Property and equipment additions $ 57,976 $ 30,018 $ 25,068
Operating Segments | North America      
Segment Reporting Information [Line Items]      
Property and equipment additions 29,889 11,752 10,749
Operating Segments | International      
Segment Reporting Information [Line Items]      
Property and equipment additions 8,072 3,298 2,476
Operating Segments | AWS      
Segment Reporting Information [Line Items]      
Property and equipment additions 16,530 13,058 9,783
Operating Segments | AWS | Assets held under capital leases      
Segment Reporting Information [Line Items]      
Property and equipment additions     8,400
Operating Segments | AWS | Assets Held Under Finance Leases      
Segment Reporting Information [Line Items]      
Property and equipment additions 7,700 10,600  
Operating Segments | AWS | Assets under financing obligations      
Segment Reporting Information [Line Items]      
Property and equipment additions 130 0 245
Operating Segments | North America and International | Assets held under capital leases      
Segment Reporting Information [Line Items]      
Property and equipment additions     2,000
Operating Segments | North America and International | Assets Held Under Finance Leases      
Segment Reporting Information [Line Items]      
Property and equipment additions 5,600 3,800  
Operating Segments | North America and International | Assets under financing obligations      
Segment Reporting Information [Line Items]      
Property and equipment additions 2,700 1,300 3,000
Corporate      
Segment Reporting Information [Line Items]      
Property and equipment additions $ 3,485 $ 1,910 $ 2,060
v3.20.4
Segment Information - Depreciation and Amortization Expense, by Segment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]      
Depreciation and amortization expense $ 16,239 $ 15,150 $ 12,138
North America      
Segment Reporting Information [Line Items]      
Depreciation and amortization expense 6,421 5,106 4,415
International      
Segment Reporting Information [Line Items]      
Depreciation and amortization expense 2,215 1,886 1,628
AWS      
Segment Reporting Information [Line Items]      
Depreciation and amortization expense $ 7,603 $ 8,158 $ 6,095
v3.20.4
Quarterly Results (Unaudited) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]                      
Net sales $ 125,555 $ 96,145 $ 88,912 $ 75,452 $ 87,437 $ 69,981 $ 63,404 $ 59,700 $ 386,064 $ 280,522 $ 232,887
Operating income 6,873 6,194 5,843 3,989 3,879 3,157 3,084 4,420 22,899 14,541 12,421
Income before income taxes 7,765 6,809 6,221 3,383 4,053 2,632 2,889 4,401 24,178 13,976 11,261
Provision for income taxes (566) (569) (984) (744) (786) (494) (257) (836) (2,863) (2,374) (1,197)
Net income $ 7,222 $ 6,331 $ 5,243 $ 2,535 $ 3,268 $ 2,134 $ 2,625 $ 3,561 $ 21,331 $ 11,588 $ 10,073
Basic earnings per share (in dollars per share) $ 14.38 $ 12.63 $ 10.50 $ 5.09 $ 6.58 $ 4.31 $ 5.32 $ 7.24 $ 42.64 $ 23.46 $ 20.68
Diluted earnings per share (in dollars per share) $ 14.09 $ 12.37 $ 10.30 $ 5.01 $ 6.47 $ 4.23 $ 5.22 $ 7.09 $ 41.83 $ 23.01 $ 20.14
Shares used in computation of earnings per share:                      
Basic (in shares) 502 501 500 498 496 495 493 491 500 494 487
Diluted (in shares) 513 512 509 506 505 504 503 502 510 504 500