AMAZON COM INC, 10-K filed on 2/3/2023
Annual Report
v3.22.4
Cover Page - USD ($)
 12 Months Ended
Dec. 31, 2022
Jan. 25, 2023
Jun. 30, 2022
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2022    
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     $ 944,744,113,598
Entity Common Stock, Shares Outstanding   10,247,259,757  
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 2023, 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 2022    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001018724    
v3.22.4
Audit Information
 12 Months Ended
Dec. 31, 2022
Audit Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Firm ID 42
Auditor Location Seattle, Washington
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Cash Flows [Abstract]      
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $ 36,477 $ 42,377 $ 36,410
OPERATING ACTIVITIES:      
Net income (loss) (2,722) 33,364 21,331
Adjustments to reconcile net income (loss) to net cash from operating activities:      
Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other 41,921 34,433 25,180
Stock-based compensation 19,621 12,757 9,208
Other expense (income), net 16,966 (14,306) (2,582)
Deferred income taxes (8,148) (310) (554)
Changes in operating assets and liabilities:      
Inventories (2,592) (9,487) (2,849)
Accounts receivable, net and other (21,897) (18,163) (8,169)
Accounts payable 2,945 3,602 17,480
Accrued expenses and other (1,558) 2,123 5,754
Unearned revenue 2,216 2,314 1,265
Net cash provided by (used in) operating activities 46,752 46,327 66,064
INVESTING ACTIVITIES:      
Purchases of property and equipment (63,645) (61,053) (40,140)
Proceeds from property and equipment sales and incentives 5,324 5,657 5,096
Acquisitions, net of cash acquired, and other (8,316) (1,985) (2,325)
Sales and maturities of marketable securities 31,601 59,384 50,237
Purchases of marketable securities (2,565) (60,157) (72,479)
Net cash provided by (used in) investing activities (37,601) (58,154) (59,611)
FINANCING ACTIVITIES:      
Common stock repurchased (6,000) 0 0
Proceeds from short-term debt, and other 41,553 7,956 6,796
Repayments of short-term debt, and other (37,554) (7,753) (6,177)
Proceeds from long-term debt 21,166 19,003 10,525
Repayments of long-term debt (1,258) (1,590) (1,553)
Principal repayments of finance leases (7,941) (11,163) (10,642)
Principal repayments of financing obligations (248) (162) (53)
Net cash provided by (used in) financing activities 9,718 6,291 (1,104)
Foreign currency effect on cash, cash equivalents, and restricted cash (1,093) (364) 618
Net increase (decrease) in cash, cash equivalents, and restricted cash 17,776 (5,900) 5,967
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $ 54,253 $ 36,477 $ 42,377
v3.22.4
Consolidated Statements Of Operations - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Total net sales $ 513,983 $ 469,822 $ 386,064
Operating expenses:      
Cost of sales 288,831 272,344 233,307
Fulfillment 84,299 75,111 58,517
Technology and content 73,213 56,052 42,740
Sales and marketing 42,238 32,551 22,008
General and administrative 11,891 8,823 6,668
Other operating expense (income), net 1,263 62 (75)
Total operating expenses 501,735 444,943 363,165
Operating income 12,248 24,879 22,899
Interest income 989 448 555
Interest expense (2,367) (1,809) (1,647)
Other income (expense), net (16,806) 14,633 2,371
Total non-operating income (expense) (18,184) 13,272 1,279
Income (loss) before income taxes (5,936) 38,151 24,178
Benefit (provision) for income taxes 3,217 (4,791) (2,863)
Equity-method investment activity, net of tax (3) 4 16
Net income (loss) $ (2,722) $ 33,364 $ 21,331
Basic earnings per share (in dollars per share) $ (0.27) $ 3.30 $ 2.13
Diluted earnings per share (in dollars per share) $ (0.27) $ 3.24 $ 2.09
Weighted-average shares used in computation of earnings per share:      
Basic (in shares) 10,189 10,117 10,005
Diluted (in shares) 10,189 10,296 10,198
Net product sales      
Total net sales $ 242,901 $ 241,787 $ 215,915
Net service sales      
Total net sales $ 271,082 $ 228,035 $ 170,149
v3.22.4
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ (2,722) $ 33,364 $ 21,331
Other comprehensive income (loss):      
Foreign currency translation adjustments, net of tax of $(36), $47, and $100 (2,586) (819) 561
Net change in unrealized gains (losses) on available-for-sale debt securities:      
Unrealized gains (losses), net of tax of $(83), $72, and $159 (823) (343) 273
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $8, $13, and $0 298 (34) (28)
Net unrealized gains (losses) on available-for-sale debt securities (525) (377) 245
Other comprehensive income (loss) (3,111) (1,196) 806
Comprehensive income (loss) $ (5,833) $ 32,168 $ 22,137
v3.22.4
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Foreign currency translation adjustments, tax $ 100 $ 47 $ (36)
Unrealized gains (losses), tax 159 72 (83)
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” tax $ 0 $ 13 $ 8
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 53,888 $ 36,220
Marketable securities 16,138 59,829
Inventories 34,405 32,640
Accounts receivable, net and other 42,360 32,891
Total current assets 146,791 161,580
Property and equipment, net 186,715 160,281
Operating leases 66,123 56,082
Goodwill 20,288 15,371
Other assets 42,758 27,235
Total assets 462,675 420,549
Current liabilities:    
Accounts payable 79,600 78,664
Accrued expenses and other 62,566 51,775
Unearned revenue 13,227 11,827
Total current liabilities 155,393 142,266
Long-term lease liabilities 72,968 67,651
Long-term debt 67,150 48,744
Other long-term liabilities 21,121 23,643
Commitments and contingencies (Note 7)
Stockholders’ equity:    
Preferred stock ($0.01 par value; 500 shares authorized; no shares issued or outstanding) 0 0
Common stock ($0.01 par value; 100,000 shares authorized; 10,644 and 10,757 shares issued; 10,175 and 10,242 shares outstanding) 108 106
Treasury stock, at cost (7,837) (1,837)
Additional paid-in capital 75,066 55,437
Accumulated other comprehensive income (loss) (4,487) (1,376)
Retained earnings 83,193 85,915
Total stockholders’ equity 146,043 138,245
Total liabilities and stockholders’ equity $ 462,675 $ 420,549
v3.22.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2022
Dec. 31, 2021
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) 100,000,000,000 100,000,000,000
Common stock, issued (in shares) 10,757,000,000 10,644,000,000
Common stock, outstanding (in shares) 10,242,000,000 10,175,000,000
v3.22.4
Consolidated Statements of Stockholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Treasury Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Beginning Balance (in shares) at Dec. 31, 2019   9,950        
Beginning Balance at Dec. 31, 2019 $ 62,060 $ 104 $ (1,837) $ 33,559 $ (986) $ 31,220
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 21,331         21,331
Other comprehensive income (loss) 806       806  
Stock-based compensation and issuance of employee benefit plan stock (in shares)   116        
Stock-based compensation and issuance of employee benefit plan stock 9,207 $ 1   9,206    
Ending Balance (in shares) at Dec. 31, 2020   10,066        
Ending Balance at Dec. 31, 2020 93,404 $ 105 (1,837) 42,765 (180) 52,551
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 33,364         33,364
Other comprehensive income (loss) (1,196)       (1,196)  
Stock-based compensation and issuance of employee benefit plan stock (in shares)   109        
Stock-based compensation and issuance of employee benefit plan stock $ 12,673 $ 1   12,672    
Ending Balance (in shares) at Dec. 31, 2021 10,175 10,175        
Ending Balance at Dec. 31, 2021 $ 138,245 $ 106 (1,837) 55,437 (1,376) 85,915
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (2,722)         (2,722)
Other comprehensive income (loss) (3,111)       (3,111)  
Stock-based compensation and issuance of employee benefit plan stock (in shares)   113        
Stock-based compensation and issuance of employee benefit plan stock 19,631 $ 2   19,629    
Common stock repurchased (in shares)   (46)        
Common stock repurchased $ (6,000)   (6,000)      
Ending Balance (in shares) at Dec. 31, 2022 10,242 10,242        
Ending Balance at Dec. 31, 2022 $ 146,043 $ 108 $ (7,837) $ 75,066 $ (4,487) $ 83,193
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures
 12 Months Ended
Dec. 31, 2022
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, content creators, advertisers, and employees. 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, independent publishers, musicians, filmmakers, Twitch streamers, 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 advertising services 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.”
Common Stock Split
On May 27, 2022, we effected a 20-for-1 stock split of our common stock and proportionately increased the number of authorized shares of common stock. All share, restricted stock unit (“RSU”), and per share or per RSU information throughout this Annual Report on Form 10-K has been retroactively adjusted to reflect the stock split. The shares of common stock retain a par value of $0.01 per share. Accordingly, an amount equal to the par value of the increased shares resulting from the stock split was reclassified from “Additional paid-in capital” to “Common stock.”
Prior Period Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation. “Other operating expense (income), net” was reclassified into “Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, 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, impairment of property and equipment and operating leases, valuation and impairment of investments, self-insurance liabilities, and viewing patterns of capitalized video content. Actual results could differ materially from these estimates. We review the useful lives of equipment on an ongoing basis, and effective January 1, 2022 we changed our estimate of the useful lives for our servers from four years to five years and for our networking equipment from five years to six years. The longer useful lives are 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, 2022, based on servers and networking equipment that were included in “Property and equipment, net” as of December 31, 2021 and those acquired during the year ended December 31, 2022, was a reduction in depreciation and amortization expense of $3.6 billion and a benefit to net loss of $2.8 billion, or $0.28 per basic share and $0.28 per diluted share.
For the year ended December 31, 2022, we recorded approximately $1.1 billion, of which $720 million was recorded in the fourth quarter, of impairments of property and equipment and operating leases primarily related to physical stores. These charges were recorded in “Other operating expense (income), net” on our consolidated statements of operations and primarily impacted our North America segment. For the year ended December 31, 2022, we also recorded expenses of approximately
$480 million primarily in “Fulfillment” on our consolidated statements of operations relating to terminating contracts for certain leases not yet commenced as well as other purchase commitments, which primarily impacted our North America segment.
For the year ended December 31, 2022, we recorded approximately $720 million, of which $640 million was recorded in the fourth quarter, of estimated severance costs primarily related to planned role eliminations. These charges were recorded primarily in “Technology and content,” “Fulfillment,” and “General and administrative” on our consolidated statements of operations and primarily impacted our North America segment.
Supplemental Cash Flow Information
The following table shows supplemental cash flow information (in millions):
Year Ended December 31,
202020212022
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt$916 $1,098 $1,561 
Cash paid for operating leases$4,475 $6,722 $8,633 
Cash paid for interest on finance leases$612 $521 $374 
Cash paid for interest on financing obligations$102 $153 $207 
Cash paid for income taxes, net of refunds$1,713 $3,688 $6,035 
Assets acquired under operating leases$16,217 $25,369 $18,800 
Property and equipment acquired under finance leases, net of remeasurements and modifications$11,588 $7,061 $675 
Property and equipment recognized during the construction period of build-to-suit lease arrangements$2,267 $5,846 $3,187 
Property and equipment derecognized after the construction period of build-to-suit lease arrangements, with the associated leases recognized as operating$— $230 $5,158 
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,
 202020212022
Shares used in computation of basic earnings per share10,005 10,117 10,189 
Total dilutive effect of outstanding stock awards193 179 — 
Shares used in computation of diluted earnings per share10,198 10,296 10,189 
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.
Advertising services - We provide advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising. Revenue is recognized as ads are delivered based on the number of clicks or impressions.
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 includes sales related to various other offerings, such as certain licensing and distribution of video content and shipping services, and our co-branded credit card agreements. Revenue is recognized when content is licensed or distributed and as or when services are performed.
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 $859 million, $1.0 billion, and $1.3 billion as of December 31, 2020, 2021, and 2022. Additions to the allowance were $3.5 billion, $5.1 billion, and $5.5 billion and deductions from the allowance were $3.6 billion, $4.9 billion, and $5.2 billion in 2020, 2021, and 2022. Included in “Inventories” on our consolidated balance sheets are assets totaling $852 million, $882 million, and $948 million as of December 31, 2020, 2021, and 2022, 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 facilities and equipment expenses, such as depreciation and amortization, and rent; 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, including expenditures related to initiatives to build and deploy innovative and efficient software and electronic devices and the development of a satellite network for global broadband service and autonomous vehicles for ride-hailing services. Technology and content costs are generally expensed as incurred.
Sales and Marketing
Sales and marketing costs include 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 $10.9 billion, $16.9 billion, and $20.6 billion in 2020, 2021, and 2022.
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.
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 by grant year 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 the amortization of intangible assets and, for 2020, a benefit from accelerated vesting of warrants to acquire equity of a vendor partially offset by a lease impairment and, for 2022, $1.1 billion of impairments of property and equipment and operating leases.
Other Income (Expense), Net
Other income (expense), net, is as follows (in millions):
Year Ended December 31,
202020212022
Marketable equity securities valuation gains (losses)$525 $11,526 $(13,870)
Equity warrant valuation gains (losses)1,527 1,315 (2,132)
Upward adjustments relating to equity investments in private companies342 1,866 76 
Foreign currency gains (losses)35 (55)(340)
Other, net(58)(19)(540)
Total other income (expense), net2,371 14,633 (16,806)
Included in other income (expense), net in 2021 and 2022 is a marketable equity securities valuation gain (loss) of $11.8 billion and $(12.7) billion from our equity investment in Rivian Automotive, Inc. (“Rivian”). Our investment in Rivian’s preferred stock was accounted for at cost, with adjustments for observable changes in prices or impairments, prior to Rivian’s initial public offering in November 2021, which resulted in the conversion of our preferred stock to Class A common stock. As of December 31, 2022, we held 158 million shares of Rivian’s Class A common stock, representing an approximate 17% ownership interest, and an approximate 16% voting interest. We determined that we have the ability to exercise significant influence over Rivian through our equity investment, our commercial arrangement for the purchase of electric vehicles, and one of our employees serving on Rivian’s board of directors. We elected the fair value option to account for our equity investment in Rivian, which is included in “Marketable securities” on our consolidated balance sheets.
Required summarized financial information of Rivian as disclosed in its most recent SEC filings is as follows (in millions):
Year Ended
December 31, 2020		Year Ended
December 31, 2021		Nine Months Ended
September 30, 2022
Revenues$— $55 $995 
Gross profit— (465)(2,123)
Loss from operations(1,021)(4,220)(5,061)
Net loss(1,018)(4,688)(5,029)

December 31, 2021September 30, 2022
Total current assets$18,559 $14,424 
Total assets22,294 19,023 
Total current liabilities1,313 2,109 
Total liabilities2,780 3,686 
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 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.
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, 2021 and 2022.
We hold equity warrants giving us the right to acquire stock of other companies. As of December 31, 2021 and 2022, these warrants had a fair value of $3.4 billion and $2.1 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 $2.6 billion and $2.8 billion as of December 31, 2021 and 2022.
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. We have certain non-cancellable purchase commitments arising from these agreements. 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, 2021 and 2022, customer receivables, net, were $20.2 billion and $26.6 billion, vendor receivables, net, were $5.3 billion and $6.9 billion, and seller receivables, net, were $1.0 billion and $1.3 billion. 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 $1.1 billion, $1.1 billion, and $1.4 billion as of December 31, 2020, 2021, and 2022. Additions to the allowance were $1.4 billion, $1.0 billion, and $1.6 billion, and deductions to the allowance were $1.0 billion, $1.1 billion, and $1.3 billion in 2020, 2021, and 2022.
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, four years prior to January 1, 2022 and five years subsequent to January 1, 2022 for our servers, five years prior to January 1, 2022 and six years subsequent to January 1, 2022 for our 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 operating.
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, 2022, 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; long-term deferred tax assets; acquired intangible assets, net of accumulated amortization; equity warrant assets and certain equity investments; and satellite network launch services deposits. We recognize certain transactions with governments when there is reasonable assurance that incentives included in the agreements, such as cash or certain tax credits, will be received and we are able to comply with any related conditions. These incentives are recorded as reductions to the cost of related assets or expenses.
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 estimated viewing patterns associated with the content. The weighted average remaining life of our capitalized video content is 2.6 years. We review usage and viewing patterns impacting the amortization of capitalized video content on an ongoing basis and reflect any changes prospectively. Changes in historical and anticipated viewing patterns are lengthening the weighted average life of our capitalized video content. We anticipate the changes in viewing patterns will positively impact 2023 operating income by approximately $1.0 billion, generally ratably throughout the year.
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, 2021 and 2022 were $10.7 billion and $16.7 billion. Total video and music expense was $13.0 billion and $16.6 billion for the year ended December 31, 2021 and 2022. 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 fixed income 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, 2021 and 2022, these investments had a carrying value of $603 million and $715 million.
Equity investments are accounted for using the equity method of accounting, or at fair value if we elect the fair value option, 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, including investments for which we have elected the fair value option, 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, 2021 and 2022.
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, tax-related liabilities, current debt, payroll and related expenses, unredeemed gift cards, self-insurance liabilities, customer liabilities, marketing liabilities, acquired digital media content, and other operating expenses.
As of December 31, 2021 and 2022, our liabilities for payroll related expenses were $7.4 billion and $7.7 billion and our liabilities for unredeemed gift cards were $5.2 billion and $5.4 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.
Self-Insurance Liabilities
Although we maintain certain high-deductible, third-party insurance coverage for catastrophic losses, we effectively self-insure for exposure primarily related to workers’ compensation, employee health care benefits, general and product liability, and automobile liability, including liability resulting from third-party transportation service providers. We estimate self-insurance liabilities by considering historical claims experience, frequency and costs of claims, projected claims development, inflation, and other actuarial assumptions. Changes in the number or costs of claims, healthcare costs, judgment and settlement amounts, associated legal expenses, and other factors could cause actual results to differ materially from these estimates. As of December 31, 2021 and 2022, our total self-insurance liabilities were $2.2 billion and $4.0 billion and are included in “Accrued expenses and other” on our consolidated balance sheets. In the fourth quarter of 2022, we increased our reserves for general, product, and automobile liabilities by $1.3 billion primarily driven by changes in our estimates about the costs of asserted and unasserted claims, which was primarily recorded in “Cost of sales” on our consolidated statements of operations and impacted our North America segment.
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, 2021 was $14.0 billion, of which $11.3 billion was recognized as revenue during the year ended December 31, 2022 and our total unearned revenue as of December 31, 2022 was $16.1 billion. Included in “Other long-term liabilities” on our consolidated balance sheets was $2.2 billion and $2.9 billion of unearned revenue as of December 31, 2021 and 2022.
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 $110.4 billion as of December 31, 2022. The weighted average remaining life of our long-term contracts is 3.7 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, unearned revenue, tax contingencies, digital video and music content, and deferred tax liabilities.
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. 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 $(118) million, $19 million, and $386 million in 2020, 2021, and 2022.
v3.22.4
Financial Instruments
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments FINANCIAL INSTRUMENTS
Cash, Cash Equivalents, Restricted Cash, and Marketable Securities
As of December 31, 2021 and 2022, 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, other investment grade securities, and marketable equity 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, 2021
  
Cost or
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Total
Estimated
Fair Value
Cash$10,942 $— $— $10,942 
Level 1 securities:
Money market funds20,312 — — 20,312 
Equity securities (1)1,646 
Level 2 securities:
Foreign government and agency securities181 — — 181 
U.S. government and agency securities4,316 9 (25)4,300 
Corporate debt securities35,810 75 (121)35,764 
Asset-backed securities6,763 7 (32)6,738 
Other fixed income securities688 2 (4)686 
Equity securities (1)(3)15,740 
$79,012 $93 $(182)$96,309 
Less: Restricted cash, cash equivalents, and marketable securities (2)(260)
Total cash, cash equivalents, and marketable securities$96,049 
 December 31, 2022
  
Cost or
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Total
Estimated
Fair Value
Cash$10,666 $— $— $10,666 
Level 1 securities:
Money market funds27,899 — — 27,899 
Equity securities (1)(3)3,709 
Level 2 securities:
Foreign government and agency securities537 — (2)535 
U.S. government and agency securities2,301 — (155)2,146 
Corporate debt securities23,111 — (484)22,627 
Asset-backed securities2,721 — (149)2,572 
Other fixed income securities249 — (12)237 
$67,484 $— $(802)$70,391 
Less: Restricted cash, cash equivalents, and marketable securities (2)(365)
Total cash, cash equivalents, and marketable securities$70,026 
___________________
(1)The related unrealized gain (loss) recorded in “Other income (expense), net” was $448 million, $11.6 billion, and $(13.6) billion for the years ended December 31, 2020, 2021, and 2022.
(2)We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable fixed income securities primarily as collateral for real estate, amounts due to third-party sellers in certain jurisdictions, debt, and standby and trade letters of credit. We classify cash, cash equivalents, and marketable fixed income 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.”
(3)Our equity investment in Rivian had a fair value of $15.6 billion and $2.9 billion as of December 31, 2021 and December 31, 2022, respectively. The investment was subject to regulatory sales restrictions resulting in a discount for lack of marketability of approximately $800 million as of December 31, 2021, which expired in Q1 2022.
The following table summarizes gross gains and gross losses realized on sales of marketable fixed income securities (in millions):
Year Ended December 31,
202020212022
Realized gains$92 $85 $43 
Realized losses56 38 341 
The following table summarizes the remaining contractual maturities of our cash equivalents and marketable fixed income securities as of December 31, 2022 (in millions):
Amortized
Cost		Estimated
Fair Value
Due within one year$46,854 $46,782 
Due after one year through five years7,622 7,047 
Due after five years through ten years602 565 
Due after ten years1,740 1,622 
Total$56,818 $56,016 
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, 2021December 31, 2022
Cash and cash equivalents$36,220 $53,888 
Restricted cash included in accounts receivable, net and other242 358 
Restricted cash included in other assets15 7 
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows$36,477 $54,253 
v3.22.4
Property and Equipment
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment PROPERTY AND EQUIPMENT
Property and equipment, at cost, consisted of the following (in millions): 
 December 31,
 20212022
Gross property and equipment (1):
Land and buildings$81,104 $91,650 
Equipment128,683 157,458 
Other assets4,118 4,602 
Construction in progress24,895 30,020 
Gross property and equipment238,800 283,730 
Total accumulated depreciation and amortization (1)78,519 97,015 
Total property and equipment, net$160,281 $186,715 
__________________
(1)Includes the original cost and accumulated depreciation of fully-depreciated assets.
Depreciation and amortization expense on property and equipment was $16.2 billion, $22.9 billion, and $24.9 billion which includes amortization of property and equipment acquired under finance leases of $8.5 billion, $9.9 billion, and $6.1 billion for 2020, 2021, and 2022.
v3.22.4
Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases LEASESWe have entered into non-cancellable operating and finance leases for fulfillment, delivery, office, data center, physical store, and sortation facilities as well as server and networking equipment, vehicles, and aircraft. 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 $72.2 billion and $68.0 billion as of December 31, 2021 and 2022. Accumulated amortization associated with finance leases was $43.4 billion and $45.2 billion as of December 31, 2021 and 2022.
Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions):
 Year Ended December 31,
202020212022
Operating lease cost$5,019 $7,199 $8,847 
Finance lease cost:
Amortization of lease assets8,452 9,857 6,097 
Interest on lease liabilities617 473 361 
Finance lease cost9,069 10,330 6,458 
Variable lease cost1,238 1,556 1,852 
Total lease cost$15,326 $19,085 $17,157 
Other information about lease amounts recognized in our consolidated financial statements is as follows:
 December 31, 2021December 31, 2022
 
Weighted-average remaining lease term – operating leases11.3 years11.6 years
Weighted-average remaining lease term – finance leases8.1 years10.3 years
Weighted-average discount rate – operating leases2.2 %2.8 %
Weighted-average discount rate – finance leases2.0 %2.3 %
Our lease liabilities were as follows (in millions):
December 31, 2021
 Operating LeasesFinance LeasesTotal
Gross lease liabilities$66,269 $25,866 $92,135 
Less: imputed interest(7,939)(2,113)(10,052)
Present value of lease liabilities58,330 23,753 82,083 
Less: current portion of lease liabilities(6,349)(8,083)(14,432)
Total long-term lease liabilities$51,981 $15,670 $67,651 
December 31, 2022
 Operating LeasesFinance LeasesTotal
Gross lease liabilities$81,273 $18,019 $99,292 
Less: imputed interest(12,233)(2,236)(14,469)
Present value of lease liabilities69,040 15,783 84,823 
Less: current portion of lease liabilities(7,458)(4,397)(11,855)
Total long-term lease liabilities$61,582 $11,386 $72,968 
Leases LEASESWe have entered into non-cancellable operating and finance leases for fulfillment, delivery, office, data center, physical store, and sortation facilities as well as server and networking equipment, vehicles, and aircraft. 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 $72.2 billion and $68.0 billion as of December 31, 2021 and 2022. Accumulated amortization associated with finance leases was $43.4 billion and $45.2 billion as of December 31, 2021 and 2022.
Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions):
 Year Ended December 31,
202020212022
Operating lease cost$5,019 $7,199 $8,847 
Finance lease cost:
Amortization of lease assets8,452 9,857 6,097 
Interest on lease liabilities617 473 361 
Finance lease cost9,069 10,330 6,458 
Variable lease cost1,238 1,556 1,852 
Total lease cost$15,326 $19,085 $17,157 
Other information about lease amounts recognized in our consolidated financial statements is as follows:
 December 31, 2021December 31, 2022
 
Weighted-average remaining lease term – operating leases11.3 years11.6 years
Weighted-average remaining lease term – finance leases8.1 years10.3 years
Weighted-average discount rate – operating leases2.2 %2.8 %
Weighted-average discount rate – finance leases2.0 %2.3 %
Our lease liabilities were as follows (in millions):
December 31, 2021
 Operating LeasesFinance LeasesTotal
Gross lease liabilities$66,269 $25,866 $92,135 
Less: imputed interest(7,939)(2,113)(10,052)
Present value of lease liabilities58,330 23,753 82,083 
Less: current portion of lease liabilities(6,349)(8,083)(14,432)
Total long-term lease liabilities$51,981 $15,670 $67,651 
December 31, 2022
 Operating LeasesFinance LeasesTotal
Gross lease liabilities$81,273 $18,019 $99,292 
Less: imputed interest(12,233)(2,236)(14,469)
Present value of lease liabilities69,040 15,783 84,823 
Less: current portion of lease liabilities(7,458)(4,397)(11,855)
Total long-term lease liabilities$61,582 $11,386 $72,968 
v3.22.4
Acquisitions, Goodwill, and Acquired Intangible Assets
 12 Months Ended
Dec. 31, 2022
Business Combinations [Abstract]  
Acquisitions, Goodwill, and Acquired Intangible Assets ACQUISITIONS, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS
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”).
2021 Acquisition Activity
During 2021, we acquired certain companies for an aggregate purchase price of $496 million, net of cash acquired.
2022 Acquisition Activity
On March 17, 2022, we acquired MGM Holdings Inc., for cash consideration of approximately $6.1 billion, net of cash acquired, to provide more digital media content options for customers. We also assumed $2.5 billion of debt, which we repaid immediately after closing. The acquired assets primarily consist of $3.4 billion of video content and $4.9 billion of goodwill.
During 2022, we also acquired certain other companies for an aggregate purchase price of $141 million, net of cash acquired.
Pro forma results of operations have not been presented because the effects of the 2022 acquisitions, individually and in the aggregate, were not material to our consolidated results of operations. Acquisition-related costs were expensed as incurred and were not significant.
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 2021 and 2022 by segment (in millions):
North
America		InternationalAWSConsolidated
Goodwill - January 1, 2021$12,527 $1,288 $1,202 $15,017 
New acquisitions 230 60 76 366 
Other adjustments (1)1 (21)8 (12)
Goodwill - December 31, 202112,758 1,327 1,286 15,371 
New acquisitions3,943 1,054 — 4,997 
Other adjustments (1)(80)30 (30)(80)
Goodwill - December 31, 2022$16,621 $2,411 $1,256 $20,288 
 ___________________
(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,
 20212022
  
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$2,286 $(548)$1,738 $2,407 $(601)$1,806 18.6
Contract-based2,327 (565)1,762 3,661 (813)2,848 12.8
Technology- and content-based976 (610)366 883 (643)240 3.2
Customer-related197 (103)94 184 (128)56 2.2
Total finite-lived intangible assets$5,786 $(1,826)$3,960 $7,135 $(2,185)$4,950 14.4
IPR&D and other (3)$1,147  $1,147 $1,147  $1,147 
Total acquired intangibles $6,933 $(1,826)$5,107 $8,282 $(2,185)$6,097 
 ___________________
(1)Excludes the original cost and accumulated amortization of fully-amortized intangibles.
(2)Finite-lived intangible assets, excluding acquired video content, 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 $509 million, $512 million, and $604 million in 2020, 2021, and 2022. Expected future amortization expense of acquired finite-lived intangible assets as of December 31, 2022 is as follows (in millions):
 
Year Ended December 31,
2023$530 
2024456 
2025371 
2026324 
2027314 
Thereafter2,955 
$4,950 
v3.22.4
Debt
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt DEBT
As of December 31, 2022, we had $69.5 billion of unsecured senior notes outstanding (the “Notes”), including $12.8 billion issued in April 2022 and $8.3 billion issued in December 2022 for general corporate purposes, and $1.0 billion of borrowings under our secured revolving credit facility. Our total long-term debt obligations are as follows (in millions):
Maturities (1)Stated Interest RatesEffective Interest RatesDecember 31, 2021December 31, 2022
2012 Notes issuance of $3.0 billion
20222.50%2.66%1,250 — 
2014 Notes issuance of $6.0 billion
2024 - 2044
3.80% - 4.95%
3.90% - 5.12%
4,000 4,000 
2017 Notes issuance of $17.0 billion
2023 - 2057
2.40% - 5.20%
2.56% - 4.33%
16,000 16,000 
2020 Notes issuance of $10.0 billion
2023 - 2060
0.40% - 2.70%
0.56% - 2.77%
10,000 10,000 
2021 Notes issuance of $18.5 billion
2023 - 2061
0.25% - 3.25%
0.35% - 3.31%
18,500 18,500 
April 2022 Notes issuance of $12.8 billion
2024 - 2062
2.73% - 4.10%
2.83% - 4.15%
— 12,750 
December 2022 Notes issuance of $8.3 billion
2024 - 2032
4.55% - 4.70%
4.61% - 4.83%
— 8,250 
Credit Facility803 1,042 
Total face value of long-term debt50,553 70,542 
Unamortized discount and issuance costs, net(318)(393)
Less: current portion of long-term debt(1,491)(2,999)
Long-term debt$48,744 $67,150 
___________________
(1)The weighted-average remaining lives of the 2014, 2017, 2020, 2021, April 2022, and December 2022 Notes were 12.6, 14.2, 16.7, 13.3, 13.3, and 5.9 years as of December 31, 2022. The combined weighted-average remaining life of the Notes was 13.1 years as of December 31, 2022.
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 $53.3 billion and $61.4 billion as of December 31, 2021 and 2022, which is based on quoted prices for our debt as of those dates.
We have a $1.5 billion secured revolving credit facility with a lender that is secured by certain seller receivables, which we increased from $1.0 billion to $1.5 billion in August 2022 and we may from time to time increase in the future subject to lender approval (the “Credit Facility”). The Credit Facility is available until August 2025, bears interest based on the daily Secured Overnight Financing Rate plus 1.25%, and has a commitment fee of up to 0.45% on the undrawn portion. There were $803 million and $1.0 billion of borrowings outstanding under the Credit Facility as of December 31, 2021 and 2022, which had an interest rate of 1.5% and 5.6%, respectively. As of December 31, 2021 and 2022, we have pledged $918 million and $1.2 billion 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, 2021 and 2022.
As of December 31, 2022, future principal payments for our total long-term debt were as follows (in millions):
Year Ended December 31,
2023$3,000 
20248,500 
20255,249 
20263,543 
20278,750 
Thereafter41,500 
$70,542 
We have U.S. Dollar and Euro commercial paper programs (the “Commercial Paper Programs”) under which we may from time to time issue unsecured commercial paper up to a total of $20.0 billion (including up to €3.0 billion) at the date of issue, with individual maturities that may vary but will not exceed 397 days from the date of issue. In March 2022, we increased the size of the Commercial Paper Programs from $10.0 billion to $20.0 billion. There were $725 million and $6.8 billion of borrowings outstanding under the Commercial Paper Programs as of December 31, 2021 and 2022, which were
included in “Accrued expenses and other” on our consolidated balance sheets and had a weighted-average effective interest rate, including issuance costs, of 0.08% and 4.47%, respectively. We use the net proceeds from the issuance of commercial paper for general corporate purposes.
We have a $10.0 billion unsecured revolving credit facility with a syndicate of lenders (the “Credit Agreement”), which was amended and restated in March 2022 to increase the borrowing capacity from $7.0 billion to $10.0 billion and to extend the term to March 2025. 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 Credit Agreement is the applicable benchmark rate specified in the Credit Agreement plus 0.45%, with a commitment fee of 0.03% on the undrawn portion of the credit facility. There were no borrowings outstanding under the Credit Agreement as of December 31, 2021 and 2022.
In November 2022, we entered into a $10.0 billion unsecured 364-day revolving credit facility with a syndicate of lenders (the “Short-Term Credit Agreement”), which matures in November 2023 and may be extended for one additional period of 364 days if approved by the lenders. The interest rate applicable to outstanding balances under the Short-Term Credit Agreement is the Secured Overnight Financing Rate specified in the Short-Term Credit Agreement plus 0.45%, with a commitment fee of 0.05% on the undrawn portion. There were no borrowings outstanding under the Short-Term Credit Agreement as of December 31, 2022.
We also utilize other short-term credit facilities for working capital purposes. There were $318 million and $1.2 billion of borrowings outstanding under these facilities as of December 31, 2021 and 2022, which were included in “Accrued expenses and other” on our consolidated balance sheets. In addition, we had $6.9 billion of unused letters of credit as of December 31, 2022.
In January 2023, we entered into an $8.0 billion unsecured 364-day term loan with a syndicate of lenders (the “Term Loan”), which matures in January 2024 and bears interest at the Secured Overnight Financing Rate specified in the Term Loan plus 0.75%. If we exercise our option to extend the Term Loan’s maturity to January 2025, the interest rate spread will increase from 0.75% to 1.05%. As of the date of this filing, the entire Term Loan is outstanding.
v3.22.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies COMMITMENTS AND CONTINGENCIES
Commitments
The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally cancellable, as of December 31, 2022 (in millions):
 Year Ended December 31,  
 20232024202520262027ThereafterTotal
Long-term debt principal and interest$5,165 $10,618 $7,146 $5,253 $10,399 $63,815 $102,396 
Operating lease liabilities9,574 8,658 8,024 7,393 6,675 40,949 81,273 
Finance lease liabilities, including interest4,575 2,248 1,422 1,279 1,088 7,407 18,019 
Financing obligations, including interest (1)465 464 456 464 471 6,712 9,032 
Leases not yet commenced1,252 2,043 2,185 2,160 2,152 17,237 27,029 
Unconditional purchase obligations (2)8,156 7,217 5,366 4,525 3,419 6,093 34,776 
Other commitments (3)(4)3,173 1,608 1,027 982 622 8,652 16,064 
Total commitments$32,360 $32,856 $25,626 $22,056 $24,826 $150,865 $288,589 
___________________
(1)Includes non-cancellable financing obligations for fulfillment, sortation, and data center facilities. Excluding interest, current financing obligations of $196 million and $266 million are recorded within “Accrued expenses and other” and $6.2 billion and $6.7 billion are recorded within “Other long-term liabilities” as of December 31, 2021 and 2022. The weighted-average remaining term of the financing obligations was 18.8 years and 17.9 years and the weighted-average imputed interest rate was 3.2% and 3.1% as of December 31, 2021 and 2022.
(2)Includes unconditional purchase obligations related to long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets and certain products offered in our Whole Foods Market stores. 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.
(3)Includes asset retirement obligations, liabilities associated with digital media content agreements with initial terms greater than one year, and the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that are under construction.
(4)Excludes approximately $4.0 billion of accrued tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any.
In July 2022, we entered into an agreement to acquire 1Life Healthcare, Inc. (One Medical) for approximately $3.9 billion, including its debt, subject to customary closing conditions. In August 2022, we entered into an agreement to acquire iRobot Corporation for approximately $1.7 billion, including its debt, subject to customary closing conditions. We expect to fund these acquisitions with cash on hand.
Suppliers
During 2022, 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 disputing claims and denials of refunds or credits related to various non-income taxes (such as sales, value added, consumption, service, and similar taxes), including in jurisdictions in which we already collect and remit these taxes. These non-income tax controversies typically relate to (i) the taxability of products and services, including cross-border intercompany transactions, (ii) collection and withholding on transactions with third parties, and (iii) the adequacy of compliance with reporting obligations, including evolving documentation requirements. Due to the inherent complexity and uncertainty of these matters and the judicial and regulatory processes in certain jurisdictions, the final outcome of any such controversies may be materially different from our expectations.
Legal Proceedings
The Company is involved from time to time in claims, proceedings, and litigation, including the following:
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 to $250 million in damages. In April 2017, the case was transferred to the United States District Court for the Northern District of California. In May 2022, the district court granted summary judgment holding that the patent is invalid. In June 2022, Eolas filed a notice of appeal. 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, 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. In March 2022, the case was stayed pending resolution of review petitions we filed with the United States Patent and Trademark Office. In November 2022, the stay was lifted. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter.
Beginning in March 2020, with Frame-Wilson v. Amazon.com, Inc. filed in the United States District Court for the Western District of Washington, private litigants have filed a number of cases in the U.S. and Canada alleging, among other things, price fixing arrangements between Amazon.com, Inc. and vendors and third-party sellers in Amazon’s stores, monopolization and attempted monopolization, and consumer protection and unjust enrichment claims. Attorneys General for the District of Columbia and California brought similar suits in May 2021 and September 2022 in the Superior Court of the District of Columbia and the California Superior Court for the County of San Francisco, respectively. Some of the private cases include allegations of 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, injunctive relief, civil penalties, attorneys’ fees, and costs. In March 2022 and January 2023, Amazon’s motions to dismiss were granted in part and denied in part in Frame-Wilson and De Coster v. Amazon.com, Inc. (WD Wash), respectively; both courts dismissed claims alleging that Amazon’s pricing policies are inherently illegal and denied dismissal of claims alleging that Amazon’s pricing policies are an unlawful restraint of trade. In March 2022, the DC Superior Court dismissed the DC Attorney General’s lawsuit in its entirety; the dismissal is under appeal as of January 2023. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters.
In October 2020, BroadbandiTV, Inc. filed a complaint against Amazon.com, Inc., Amazon.com Services LLC, and Amazon Web Services, Inc. in the United States District Court for the Western District of Texas. The complaint alleges, among other things, that certain Amazon Prime Video features and services infringe U.S. Patent Nos. 9,648,388, 10,546,750, and 10,536,751, each entitled “Video-On-Demand Content Delivery System for Providing Video-On-Demand Services to TV Services Subscribers”; 10,028,026, entitled “System for Addressing On-Demand TV Program Content on TV Services Platform of a Digital TV Services Provider”; and 9,973,825, entitled “Dynamic Adjustment of Electronic Program Guide Displays Based on Viewer Preferences for Minimizing Navigation in VOD Program Selection.” The complaint seeks an unspecified amount of damages. In April 2022, BroadbandiTV alleged in its damages report that, in the event of a finding of liability, Amazon could be subject to $166 to $986 million in damages. In September 2022, the court granted summary judgment, holding that the patents are invalid. In October 2022, BroadbandiTV filed a notice of appeal. We dispute the allegations of wrongdoing and will continue to defend ourselves vigorously in this matter.
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 sought to impose unspecified fines and remedial actions. In December 2022, the European Commission adopted formal commitments without fines, fully resolving the investigation.
In July 2021, the Luxembourg National Commission for Data Protection (the “CNPD”) issued a decision against Amazon Europe Core S.à r.l. claiming that Amazon’s processing of personal data did not comply with the EU General Data Protection Regulation. The decision imposes a fine of €746 million and corresponding practice revisions. We believe the CNPD’s decision to be without merit and intend to defend ourselves vigorously in this matter.
In November 2021, Jawbone Innovations, LLC filed a complaint against Amazon.com, Inc. and Amazon.com Services, Inc. in the United States District Court for the Eastern District of Texas. The complaint alleges, among other things, that Amazon Echo smart speakers and displays, Fire TV Cube, and Echo Buds infringe U.S. Patent Nos. 7,246,058, entitled “Detecting Voiced and Unvoiced Speech Using Both Acoustic and Nonacoustic Sensors”; 8,019,091, entitled “Voice Activity Detector (VAD)-Based Multiple-Microphone Acoustic Noise Suppression”; 8,280,072, entitled “Microphone Array with Rear Venting”; 8,321,213 and 8,326,611, both entitled “Acoustic Voice Activity Detection (AVAD) for Electronic Systems”; 8,467,543, entitled “Microphone and Voice Activity Detection (VAD) Configurations for Use with Communications Systems”; 8,503,691, entitled “Virtual Microphone Arrays Using Dual Omnidirectional Microphone Array (DOMA)”; 10,779,080, entitled “Dual Omnidirectional Microphone Array (DOMA)”; and 11,122,357, entitled “Forming Virtual Microphone Arrays Using Dual Omnidirectional Microphone Array (DOMA).” The complaint seeks an unspecified amount of damages, enhanced damages, attorneys’ fees, costs, interest, and injunctive relief. In November 2022, 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 December 2021, the Italian Competition Authority (the “ICA”) issued a decision against Amazon Services Europe S.à r.l., Amazon Europe Core S.à r.l., Amazon EU S.à r.l., Amazon Italia Services S.r.l., and Amazon Italia Logistica S.r.l. claiming that certain of our marketplace and logistics practices in Italy infringe EU competition rules. The decision imposes remedial actions and a fine of €1.13 billion, which we are paying and will seek to recover pending conclusion of all appeals. We believe the ICA’s decision to be without merit and intend to defend ourselves vigorously in this matter.
In July 2022, Acceleration Bay, LLC filed a complaint against Amazon Web Services, Inc. in the United States District Court for the District of Delaware. The complaint alleges, among other things, that Amazon EC2, Amazon CloudFront, AWS Lambda, Amazon Lumberyard, Luna, Amazon Prime Video, Twitch, Amazon GameLift, GridMate, Amazon EKS, AWS App Mesh, and Amazon VPC infringe U.S. Patent Nos. 6,701,344, entitled “Distributed Game Environment”; 6,714,966, entitled “Information Delivery Service”; 6,732,147, entitled “Leaving a Broadcast Channel”; 6,829,634, entitled “Broadcasting Network”; and 6,910,069, entitled “Joining a Broadcast Channel.” The complaint seeks injunctive relief, an unspecified amount of damages, enhanced damages, interest, attorneys’ fees, and costs. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter.
In November 2022, LightGuide, Inc. filed a complaint against Amazon.com, Inc. and Amazon.com Services LLC in the United States District Court for the Eastern District of Texas. The complaint alleges, among other things, that Amazon’s Nike Intent Detection System used in certain fulfillment centers infringes U.S. Patent Nos. 7,515,981, entitled “Light Guided Assembly System”; and 9,658,614 and 10,528,036, each entitled “Light Guided Assembly System and Method.” 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.
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.”
v3.22.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2022
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 10.4 billion, 10.5 billion, and 10.6 billion, as of December 31, 2020, 2021, and 2022. These totals include all vested and unvested stock awards outstanding, including those awards we estimate will be forfeited.
Stock Repurchase Activity
In March 2022, the Board of Directors authorized a program to repurchase up to $10.0 billion of our common stock, with no fixed expiration, which replaced the previous $5.0 billion stock repurchase authorization, approved by the Board of Directors in February 2016. We repurchased 46.2 million shares of our common stock for $6.0 billion in 2022 under these programs. There were no repurchases of common stock in 2020 or 2021. As of December 31, 2022, we have $6.1 billion remaining under the repurchase program.
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,
202020212022
Cost of sales$283 $540 $757 
Fulfillment1,357 1,946 2,745 
Technology and content5,061 6,645 10,621 
Sales and marketing1,710 2,530 3,875 
General and administrative797 1,096 1,623 
Total stock-based compensation expense (1)$9,208 $12,757 $19,621 
___________________
(1)The related tax benefits were $1.9 billion, $2.7 billion, and $4.3 billion for 2020, 2021, and 2022.
The following table summarizes our restricted stock unit activity (in millions):
Number of UnitsWeighted Average
Grant-Date
Fair Value
Outstanding as of January 1, 2020286.7 $73 
Units granted158.6 119 
Units vested(115.5)62 
Units forfeited(26.5)82 
Outstanding as of December 31, 2020303.3 100 
Units granted127.3 167 
Units vested(108.4)85 
Units forfeited(42.3)116 
Outstanding as of December 31, 2021279.9 134 
Units granted262.8 142 
Units vested(113.3)114 
Units forfeited(45.0)143 
Outstanding as of December 31, 2022384.4 144 
Scheduled vesting for outstanding restricted stock units as of December 31, 2022, is as follows (in millions):
 Year Ended    
 20232024202520262027ThereafterTotal
Scheduled vesting — restricted stock units140.8 136.6 67.3 35.8 1.7 2.2 384.4 
As of December 31, 2022, there was $23.8 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements. This compensation is recognized on an accelerated basis with more than half of the compensation expected to be expensed in the next twelve months, and has a remaining weighted-average recognition period of 1.1 years. The estimated forfeiture rate as of December 31, 2020, 2021, and 2022 was 26.7%, 26.5%, and 26.5%. 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 2020, 2021, and 2022, the fair value of restricted stock units that vested was $15.5 billion, $18.2 billion, and $12.8 billion.
Common Stock Available for Future Issuance
As of December 31, 2022, common stock available for future issuance to employees is 1.7 billion shares.
v3.22.4
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
In 2020, 2021, and 2022, we recorded net tax provision (benefit) of $2.9 billion, $4.8 billion, and $(3.2) billion. Our U.S. taxable income is reduced by accelerated depreciation deductions and increased by the impact of capitalized research and development expenses. Cash taxes paid, net of refunds, were $1.7 billion, $3.7 billion, and $6.0 billion for 2020, 2021, and 2022.
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 a partial election for 2020 and 2021, and a full election for 2022. Effective January 1, 2022, research and development expenses are required to be capitalized and amortized for U.S. tax purposes.
The components of the provision (benefit) for income taxes, net are as follows (in millions):
 Year Ended December 31,
202020212022
U.S. Federal:
Current$1,835 $2,129 $2,175 
Deferred(151)155 (6,686)
Total1,684 2,284 (4,511)
U.S. State:
Current626 763 1,074 
Deferred(190)(178)(1,302)
Total436 585 (228)
International:
Current956 2,209 1,682 
Deferred(213)(287)(160)
Total743 1,922 1,522 
Provision (benefit) for income taxes, net$2,863 $4,791 $(3,217)
U.S. and international components of income (loss) before income taxes are as follows (in millions):
 Year Ended December 31,
 202020212022
U.S.$20,219 $35,879 $(8,225)
International3,959 2,272 2,289 
Income (loss) before income taxes$24,178 $38,151 $(5,936)
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,
 202020212022
Income taxes computed at the federal statutory rate$5,078 $8,012 $(1,246)
Effect of:
Tax impact of foreign earnings and losses(538)(1,349)(370)
State taxes, net of federal benefits343 465 (173)
Tax credits(639)(1,136)(1,006)
Stock-based compensation (1)(1,107)(1,094)612 
Foreign income deduction (2)(372)(301)(1,258)
Other, net98 194 224 
Total$2,863 $4,791 $(3,217)
___________________
(1)Includes non-deductible stock-based compensation and excess tax benefits or shortfalls from stock-based compensation. Our tax provision includes $1.8 billion and $1.9 billion of excess tax benefits from stock-based compensation for 2020 and 2021, and a $33 million tax shortfall from stock-based compensation for 2022.
(2)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.
Our provision for income taxes in 2021 was higher than in 2020 primarily due to an increase in pretax income. This was partially offset by an increase in U.S. federal research and development credits and the impact of the distribution of certain intangible assets from Luxembourg to the U.S. in Q4 2021, resulting in the utilization of $2.6 billion of Luxembourg deferred tax assets previously subject to a valuation allowance.
We generated an income tax benefit in 2022 as compared to a provision for income taxes in 2021 primarily due to a decrease in pretax income and an increase in the foreign income deduction. This was partially offset by a reduction in excess tax benefits from stock-based compensation and a decrease in the tax impact of foreign earnings and losses driven by a decline in the favorable effects of corporate restructuring transactions. The foreign income deduction benefit recognized in 2022 reflects a change in our application of tax regulations related to the computation of qualifying foreign income and includes an income tax benefit of approximately $655 million related to years prior to 2022.
We intend to invest substantially all of our foreign subsidiary earnings, as well as our capital in our foreign subsidiaries, indefinitely outside of the U.S. in those jurisdictions in which we would incur significant, additional costs upon repatriation of such amounts.
Deferred income tax assets and liabilities are as follows (in millions):
 December 31,
 20212022
Deferred tax assets (1):
Loss carryforwards U.S. - Federal/States228 386 
Loss carryforwards - Foreign2,417 2,831 
Accrued liabilities, reserves, and other expenses2,821 3,280 
Stock-based compensation2,738 4,295 
Depreciation and amortization941 1,009 
Operating lease liabilities15,399 18,285 
Capitalized research and development— 6,824 
Other items603 1,023 
Tax credits626 950 
Total gross deferred tax assets25,773 38,883 
Less valuation allowances (2)(3,596)(4,374)
Deferred tax assets, net of valuation allowances22,177 34,509 
Deferred tax liabilities:
Depreciation and amortization(3,562)(9,039)
Operating lease assets(14,422)(17,140)
Assets held for investment(4,019)— 
Other items(668)(817)
Net deferred tax assets (liabilities), net of valuation allowances$(494)$7,513 
 ___________________
(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 or future capital gains, as well as tax credits.
Our valuation allowances primarily relate to foreign deferred tax assets, including substantially all of our foreign net operating loss carryforwards as of December 31, 2022. Our foreign net operating loss carryforwards for income tax purposes as of December 31, 2022 were approximately $10.4 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 2023.
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,
 202020212022
Gross tax contingencies – January 1$3,923 $2,820 $3,242 
Gross increases to tax positions in prior periods88 403 274 
Gross decreases to tax positions in prior periods(465)(354)(172)
Gross increases to current period tax positions507 507 706 
Settlements with tax authorities(1,207)(60)(20)
Lapse of statute of limitations(26)(74)(28)
Gross tax contingencies – December 31 (1)$2,820 $3,242 $4,002 
 ___________________
(1)As of December 31, 2022, we had approximately $4.0 billion of accrued tax contingencies of which $2.2 billion, if fully recognized, would decrease our effective tax rate.
As of December 31, 2021 and 2022, we had accrued interest and penalties, net of federal income tax benefit, related to tax contingencies of $110 million and $103 million. Interest and penalties, net of federal income tax benefit, recognized for the years ended December 31, 2020, 2021, and 2022 were $(48) million, $28 million, and $(7) million.
We are under examination, or may be subject to examination, by the Internal Revenue Service for the calendar year 2016 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.
We are also subject to taxation in various states and other foreign jurisdictions including China, France, 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 2011 and thereafter. We are currently disputing tax assessments in multiple jurisdictions, including with respect to the allocation and characterization of income.
In September 2022, the Luxembourg Tax Authority (“LTA”) denied the tax basis of certain intangible assets that we distributed from Luxembourg to the U.S. in 2021. We believe the LTA’s position is without merit and intend to defend ourselves vigorously in this matter.
In February 2023, we received a decision by the Indian Tax Authority (“ITA”) that tax applies to cloud services fees paid to the U.S. We will need to remit taxes on the services in question, including for a portion of prior years, until this matter is resolved, which payments could be significant in the aggregate. We believe the ITA’s decision is without merit, we intend to defend our position vigorously, and we expect to recoup taxes paid. If this matter is adversely resolved, we would reflect significant additional tax expense, including for taxes previously paid.
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, which 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. On May 12, 2021, the European Union General Court annulled the European Commission’s state aid decision. In July 2021, the European Commission appealed the decision to the European Court of Justice. We will continue to defend ourselves vigorously in this matter.
Changes in tax laws, regulations, administrative practices, principles, and interpretations may impact our tax contingencies. Due to various factors, including the inherent complexities and uncertainties of the judicial, administrative, and regulatory processes in certain jurisdictions, the timing of the resolution of income tax controversies 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 controversies 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.
v3.22.4
Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
We have organized our operations into three segments: North America, International, and AWS. We allocate to segment results the operating expenses “Fulfillment,” “Technology and content,” “Sales and 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,
 202020212022
North America
Net sales$236,282 $279,833 $315,880 
Operating expenses227,631 272,562 318,727 
Operating income (loss)$8,651 $7,271 $(2,847)
International
Net sales$104,412 $127,787 $118,007 
Operating expenses103,695 128,711 125,753 
Operating income (loss)$717 $(924)$(7,746)
AWS
Net sales$45,370 $62,202 $80,096 
Operating expenses31,839 43,670 57,255 
Operating income$13,531 $18,532 $22,841 
Consolidated
Net sales$386,064 $469,822 $513,983 
Operating expenses363,165 444,943 501,735 
Operating income22,899 24,879 12,248 
Total non-operating income (expense)1,279 13,272 (18,184)
Benefit (provision) for income taxes(2,863)(4,791)3,217 
Equity-method investment activity, net of tax16 4 (3)
Net income (loss)$21,331 $33,364 $(2,722)
Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):
  
Year Ended December 31,
 202020212022
Net Sales:
Online stores (1)$197,346 $222,075 $220,004 
Physical stores (2)16,227 17,075 18,963 
Third-party seller services (3)80,461 103,366 117,716 
Subscription services (4)25,207 31,768 35,218 
Advertising services (5)19,773 31,160 37,739 
AWS45,370 62,202 80,096 
Other (6)1,680 2,176 4,247 
Consolidated$386,064 $469,822 $513,983 
___________________
(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)Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.
(6)Includes sales related to various other offerings, such as certain licensing and distribution of video content and shipping services, and our co-branded credit card agreements.
Net sales are attributed to countries primarily based on country-focused online and physical stores or, for AWS purposes, the selling entity. Net sales attributed to countries that represent a significant portion of consolidated net sales are as follows (in millions):
 Year Ended December 31,
 202020212022
United States$263,520 $314,006 $356,113 
Germany29,565 37,326 33,598 
United Kingdom26,483 31,914 30,074 
Japan20,461 23,071 24,396 
Rest of world46,035 63,505 69,802 
Consolidated$386,064 $469,822 $513,983 
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,
 202020212022
North America (1)$108,405 $161,255 $185,268 
International (1)42,212 57,983 64,666 
AWS (2)47,574 63,835 88,491 
Corporate123,004 137,476 124,250 
Consolidated$321,195 $420,549 $462,675 
___________________
(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,
 202020212022
North America$54,912 $83,640 $90,076 
International15,375 21,718 23,347 
AWS32,151 43,245 60,324 
Corporate10,676 11,678 12,968 
Consolidated$113,114 $160,281 $186,715 
Total net additions to property and equipment by segment are as follows (in millions):
 Year Ended December 31,
 202020212022
North America (1)$29,889 $37,397 $23,682 
International (1)8,072 10,259 6,711 
AWS (2)16,530 22,047 27,755 
Corporate3,485 2,622 2,688 
Consolidated$57,976 $72,325 $60,836 
___________________
(1)Includes property and equipment added under finance leases of $5.6 billion, $3.6 billion, and $422 million in 2020, 2021, and 2022, and under build-to-suit lease arrangements of $2.7 billion, $5.6 billion, and $3.2 billion in 2020, 2021, and 2022.
(2)Includes property and equipment added under finance leases of $7.7 billion, $3.5 billion, and $253 million in 2020, 2021, and 2022, and under build-to-suit lease arrangements of $130 million, $51 million, and $20 million in 2020, 2021, and 2022.
U.S. property and equipment, net and operating leases were $109.5 billion, $155.0 billion, and $180.0 billion, as of December 31, 2020, 2021, and 2022, and non-U.S. property and equipment, net and operating leases were $41.2 billion, $61.3 billion, and $72.9 billion as of December 31, 2020, 2021, and 2022. 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,
 202020212022
North America$6,421 $9,234 $11,565 
International2,215 3,022 3,483 
AWS7,603 10,653 9,876 
Consolidated$16,239 $22,909 $24,924 
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures (Policies)
 12 Months Ended
Dec. 31, 2022
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. “Other operating expense (income), net” was reclassified into “Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, 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, impairment of property and equipment and operating leases, valuation and impairment of investments, self-insurance liabilities, and viewing patterns of capitalized video content. 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, Return Allowances, Cost of Sales, and Vendor Agreements
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.
Advertising services - We provide advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising. Revenue is recognized as ads are delivered based on the number of clicks or impressions.
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 includes sales related to various other offerings, such as certain licensing and distribution of video content and shipping services, and our co-branded credit card agreements. Revenue is recognized when content is licensed or distributed and as or when services are performed.
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 $859 million, $1.0 billion, and $1.3 billion as of December 31, 2020, 2021, and 2022. Additions to the allowance were $3.5 billion, $5.1 billion, and $5.5 billion and deductions from the allowance were $3.6 billion, $4.9 billion, and $5.2 billion in 2020, 2021, and 2022. Included in “Inventories” on our consolidated balance sheets are assets totaling $852 million, $882 million, and $948 million as of December 31, 2020, 2021, and 2022, 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 facilities and equipment expenses, such as depreciation and amortization, and rent; 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, including expenditures related to initiatives to build and deploy innovative and efficient software and electronic devices and the development of a satellite network for global broadband service and autonomous vehicles for ride-hailing services. Technology and content costs are generally expensed as incurred.
Sales and Marketing
Sales and Marketing
Sales and marketing costs include 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 $10.9 billion, $16.9 billion, and $20.6 billion in 2020, 2021, and 2022.
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.
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 by grant year 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 the amortization of intangible assets and, for 2020, a benefit from accelerated vesting of warrants to acquire equity of a vendor partially offset by a lease impairment and, for 2022, $1.1 billion of impairments of property and equipment and operating leases.
Other Income (Expense), Net Included in other income (expense), net in 2021 and 2022 is a marketable equity securities valuation gain (loss) of $11.8 billion and $(12.7) billion from our equity investment in Rivian Automotive, Inc. (“Rivian”). Our investment in Rivian’s preferred stock was accounted for at cost, with adjustments for observable changes in prices or impairments, prior to Rivian’s initial public offering in November 2021, which resulted in the conversion of our preferred stock to Class A common stock. As of December 31, 2022, we held 158 million shares of Rivian’s Class A common stock, representing an approximate 17% ownership interest, and an approximate 16% voting interest. We determined that we have the ability to exercise significant influence over Rivian through our equity investment, our commercial arrangement for the purchase of electric vehicles, and one of our employees serving on Rivian’s board of directors. We elected the fair value option to account for our equity investment in Rivian, which is included in “Marketable securities” on our consolidated balance sheets.
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 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.
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, 2021 and 2022.
We hold equity warrants giving us the right to acquire stock of other companies. As of December 31, 2021 and 2022, these warrants had a fair value of $3.4 billion and $2.1 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 $2.6 billion and $2.8 billion as of December 31, 2021 and 2022.
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. We have certain non-cancellable purchase commitments arising from these agreements. 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, 2021 and 2022, customer receivables, net, were $20.2 billion and $26.6 billion, vendor receivables, net, were $5.3 billion and $6.9 billion, and seller receivables, net, were $1.0 billion and $1.3 billion. 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, four years prior to January 1, 2022 and five years subsequent to January 1, 2022 for our servers, five years prior to January 1, 2022 and six years subsequent to January 1, 2022 for our 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 operating.
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, 2022, 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; long-term deferred tax assets; acquired intangible assets, net of accumulated amortization; equity warrant assets and certain equity investments; and satellite network launch services deposits. We recognize certain transactions with governments when there is reasonable assurance that incentives included in the agreements, such as cash or certain tax credits, will be received and we are able to comply with any related conditions. These incentives are recorded as reductions to the cost of related assets or expenses.
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 estimated viewing patterns associated with the content. The weighted average remaining life of our capitalized video content is 2.6 years. We review usage and viewing patterns impacting the amortization of capitalized video content on an ongoing basis and reflect any changes prospectively. Changes in historical and anticipated viewing patterns are lengthening the weighted average life of our capitalized video content. We anticipate the changes in viewing patterns will positively impact 2023 operating income by approximately $1.0 billion, generally ratably throughout the year.
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, 2021 and 2022 were $10.7 billion and $16.7 billion. Total video and music expense was $13.0 billion and $16.6 billion for the year ended December 31, 2021 and 2022. 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 fixed income 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, 2021 and 2022, these investments had a carrying value of $603 million and $715 million.
Equity investments are accounted for using the equity method of accounting, or at fair value if we elect the fair value option, 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, including investments for which we have elected the fair value option, 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, tax-related liabilities, current debt, payroll and related expenses, unredeemed gift cards, self-insurance liabilities, customer liabilities, marketing liabilities, acquired digital media content, and other operating expenses.
As of December 31, 2021 and 2022, our liabilities for payroll related expenses were $7.4 billion and $7.7 billion and our liabilities for unredeemed gift cards were $5.2 billion and $5.4 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.
Self-Insurance Liabilities Self-Insurance LiabilitiesAlthough we maintain certain high-deductible, third-party insurance coverage for catastrophic losses, we effectively self-insure for exposure primarily related to workers’ compensation, employee health care benefits, general and product liability, and automobile liability, including liability resulting from third-party transportation service providers. We estimate self-insurance liabilities by considering historical claims experience, frequency and costs of claims, projected claims development, inflation, and other actuarial assumptions. Changes in the number or costs of claims, healthcare costs, judgment and settlement amounts, associated legal expenses, and other factors could cause actual results to differ materially from these estimates. As of December 31, 2021 and 2022, our total self-insurance liabilities were $2.2 billion and $4.0 billion and are included in “Accrued expenses and other” on our consolidated balance sheets. In the fourth quarter of 2022, we increased our reserves for general, product, and automobile liabilities by $1.3 billion primarily driven by changes in our estimates about the costs of asserted and unasserted claims, which was primarily recorded in “Cost of sales” on our consolidated statements of operations and impacted our North America segment.
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, 2021 was $14.0 billion, of which $11.3 billion was recognized as revenue during the year ended December 31, 2022 and our total unearned revenue as of December 31, 2022 was $16.1 billion. Included in “Other long-term liabilities” on our consolidated balance sheets was $2.2 billion and $2.9 billion of unearned revenue as of December 31, 2021 and 2022.
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 $110.4 billion as of December 31, 2022. The weighted average remaining life of our long-term contracts is 3.7 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, unearned revenue, tax contingencies, digital video and music content, and deferred tax liabilities.
Foreign Currency Foreign CurrencyWe 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. 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.
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Supplemental Cash Flow Information
The following table shows supplemental cash flow information (in millions):
Year Ended December 31,
202020212022
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt$916 $1,098 $1,561 
Cash paid for operating leases$4,475 $6,722 $8,633 
Cash paid for interest on finance leases$612 $521 $374 
Cash paid for interest on financing obligations$102 $153 $207 
Cash paid for income taxes, net of refunds$1,713 $3,688 $6,035 
Assets acquired under operating leases$16,217 $25,369 $18,800 
Property and equipment acquired under finance leases, net of remeasurements and modifications$11,588 $7,061 $675 
Property and equipment recognized during the construction period of build-to-suit lease arrangements$2,267 $5,846 $3,187 
Property and equipment derecognized after the construction period of build-to-suit lease arrangements, with the associated leases recognized as operating$— $230 $5,158 
Schedule of Calculation of Diluted Shares
The following table shows the calculation of diluted shares (in millions):
  
Year Ended December 31,
 202020212022
Shares used in computation of basic earnings per share10,005 10,117 10,189 
Total dilutive effect of outstanding stock awards193 179 — 
Shares used in computation of diluted earnings per share10,198 10,296 10,189 
Schedule of Other Income (Expense)
Other income (expense), net, is as follows (in millions):
Year Ended December 31,
202020212022
Marketable equity securities valuation gains (losses)$525 $11,526 $(13,870)
Equity warrant valuation gains (losses)1,527 1,315 (2,132)
Upward adjustments relating to equity investments in private companies342 1,866 76 
Foreign currency gains (losses)35 (55)(340)
Other, net(58)(19)(540)
Total other income (expense), net2,371 14,633 (16,806)
Summarized Financial Information of Equity Investment
Required summarized financial information of Rivian as disclosed in its most recent SEC filings is as follows (in millions):
Year Ended
December 31, 2020		Year Ended
December 31, 2021		Nine Months Ended
September 30, 2022
Revenues$— $55 $995 
Gross profit— (465)(2,123)
Loss from operations(1,021)(4,220)(5,061)
Net loss(1,018)(4,688)(5,029)

December 31, 2021September 30, 2022
Total current assets$18,559 $14,424 
Total assets22,294 19,023 
Total current liabilities1,313 2,109 
Total liabilities2,780 3,686 
v3.22.4
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2021
  
Cost or
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Total
Estimated
Fair Value
Cash$10,942 $— $— $10,942 
Level 1 securities:
Money market funds20,312 — — 20,312 
Equity securities (1)1,646 
Level 2 securities:
Foreign government and agency securities181 — — 181 
U.S. government and agency securities4,316 9 (25)4,300 
Corporate debt securities35,810 75 (121)35,764 
Asset-backed securities6,763 7 (32)6,738 
Other fixed income securities688 2 (4)686 
Equity securities (1)(3)15,740 
$79,012 $93 $(182)$96,309 
Less: Restricted cash, cash equivalents, and marketable securities (2)(260)
Total cash, cash equivalents, and marketable securities$96,049 
 December 31, 2022
  
Cost or
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Total
Estimated
Fair Value
Cash$10,666 $— $— $10,666 
Level 1 securities:
Money market funds27,899 — — 27,899 
Equity securities (1)(3)3,709 
Level 2 securities:
Foreign government and agency securities537 — (2)535 
U.S. government and agency securities2,301 — (155)2,146 
Corporate debt securities23,111 — (484)22,627 
Asset-backed securities2,721 — (149)2,572 
Other fixed income securities249 — (12)237 
$67,484 $— $(802)$70,391 
Less: Restricted cash, cash equivalents, and marketable securities (2)(365)
Total cash, cash equivalents, and marketable securities$70,026 
___________________
(1)The related unrealized gain (loss) recorded in “Other income (expense), net” was $448 million, $11.6 billion, and $(13.6) billion for the years ended December 31, 2020, 2021, and 2022.
(2)We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable fixed income securities primarily as collateral for real estate, amounts due to third-party sellers in certain jurisdictions, debt, and standby and trade letters of credit. We classify cash, cash equivalents, and marketable fixed income 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.”
(3)Our equity investment in Rivian had a fair value of $15.6 billion and $2.9 billion as of December 31, 2021 and December 31, 2022, respectively. The investment was subject to regulatory sales restrictions resulting in a discount for lack of marketability of approximately $800 million as of December 31, 2021, which expired in Q1 2022.
Summary of Gross Realized Gains (Losses) on Investments
The following table summarizes gross gains and gross losses realized on sales of marketable fixed income securities (in millions):
Year Ended December 31,
202020212022
Realized gains$92 $85 $43 
Realized losses56 38 341 
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, 2022 (in millions):
Amortized
Cost		Estimated
Fair Value
Due within one year$46,854 $46,782 
Due after one year through five years7,622 7,047 
Due after five years through ten years602 565 
Due after ten years1,740 1,622 
Total$56,818 $56,016 
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, 2021December 31, 2022
Cash and cash equivalents$36,220 $53,888 
Restricted cash included in accounts receivable, net and other242 358 
Restricted cash included in other assets15 7 
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows$36,477 $54,253 
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, 2021December 31, 2022
Cash and cash equivalents$36,220 $53,888 
Restricted cash included in accounts receivable, net and other242 358 
Restricted cash included in other assets15 7 
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows$36,477 $54,253 
v3.22.4
Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment, at Cost
Property and equipment, at cost, consisted of the following (in millions): 
 December 31,
 20212022
Gross property and equipment (1):
Land and buildings$81,104 $91,650 
Equipment128,683 157,458 
Other assets4,118 4,602 
Construction in progress24,895 30,020 
Gross property and equipment238,800 283,730 
Total accumulated depreciation and amortization (1)78,519 97,015 
Total property and equipment, net$160,281 $186,715 
__________________
(1)Includes the original cost and accumulated depreciation of fully-depreciated assets.
v3.22.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Lease, Cost
Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions):
 Year Ended December 31,
202020212022
Operating lease cost$5,019 $7,199 $8,847 
Finance lease cost:
Amortization of lease assets8,452 9,857 6,097 
Interest on lease liabilities617 473 361 
Finance lease cost9,069 10,330 6,458 
Variable lease cost1,238 1,556 1,852 
Total lease cost$15,326 $19,085 $17,157 
Other Operating and Finance Lease Information
Other information about lease amounts recognized in our consolidated financial statements is as follows:
 December 31, 2021December 31, 2022
 
Weighted-average remaining lease term – operating leases11.3 years11.6 years
Weighted-average remaining lease term – finance leases8.1 years10.3 years
Weighted-average discount rate – operating leases2.2 %2.8 %
Weighted-average discount rate – finance leases2.0 %2.3 %
Operating and Finance Lease Liability Reconciliation
Our lease liabilities were as follows (in millions):
December 31, 2021
 Operating LeasesFinance LeasesTotal
Gross lease liabilities$66,269 $25,866 $92,135 
Less: imputed interest(7,939)(2,113)(10,052)
Present value of lease liabilities58,330 23,753 82,083 
Less: current portion of lease liabilities(6,349)(8,083)(14,432)
Total long-term lease liabilities$51,981 $15,670 $67,651 
December 31, 2022
 Operating LeasesFinance LeasesTotal
Gross lease liabilities$81,273 $18,019 $99,292 
Less: imputed interest(12,233)(2,236)(14,469)
Present value of lease liabilities69,040 15,783 84,823 
Less: current portion of lease liabilities(7,458)(4,397)(11,855)
Total long-term lease liabilities$61,582 $11,386 $72,968 
v3.22.4
Acquisitions, Goodwill, and Acquired Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2022
Business Combinations [Abstract]  
Summary of Goodwill Activity The following summarizes our goodwill activity in 2021 and 2022 by segment (in millions):
North
America		InternationalAWSConsolidated
Goodwill - January 1, 2021$12,527 $1,288 $1,202 $15,017 
New acquisitions 230 60 76 366 
Other adjustments (1)1 (21)8 (12)
Goodwill - December 31, 202112,758 1,327 1,286 15,371 
New acquisitions3,943 1,054 — 4,997 
Other adjustments (1)(80)30 (30)(80)
Goodwill - December 31, 2022$16,621 $2,411 $1,256 $20,288 
 ___________________
(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,
 20212022
  
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$2,286 $(548)$1,738 $2,407 $(601)$1,806 18.6
Contract-based2,327 (565)1,762 3,661 (813)2,848 12.8
Technology- and content-based976 (610)366 883 (643)240 3.2
Customer-related197 (103)94 184 (128)56 2.2
Total finite-lived intangible assets$5,786 $(1,826)$3,960 $7,135 $(2,185)$4,950 14.4
IPR&D and other (3)$1,147  $1,147 $1,147  $1,147 
Total acquired intangibles $6,933 $(1,826)$5,107 $8,282 $(2,185)$6,097 
 ___________________
(1)Excludes the original cost and accumulated amortization of fully-amortized intangibles.
(2)Finite-lived intangible assets, excluding acquired video content, 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, 2022 is as follows (in millions):
 
Year Ended December 31,
2023$530 
2024456 
2025371 
2026324 
2027314 
Thereafter2,955 
$4,950 
v3.22.4
Debt (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2021December 31, 2022
2012 Notes issuance of $3.0 billion
20222.50%2.66%1,250 — 
2014 Notes issuance of $6.0 billion
2024 - 2044
3.80% - 4.95%
3.90% - 5.12%
4,000 4,000 
2017 Notes issuance of $17.0 billion
2023 - 2057
2.40% - 5.20%
2.56% - 4.33%
16,000 16,000 
2020 Notes issuance of $10.0 billion
2023 - 2060
0.40% - 2.70%
0.56% - 2.77%
10,000 10,000 
2021 Notes issuance of $18.5 billion
2023 - 2061
0.25% - 3.25%
0.35% - 3.31%
18,500 18,500 
April 2022 Notes issuance of $12.8 billion
2024 - 2062
2.73% - 4.10%
2.83% - 4.15%
— 12,750 
December 2022 Notes issuance of $8.3 billion
2024 - 2032
4.55% - 4.70%
4.61% - 4.83%
— 8,250 
Credit Facility803 1,042 
Total face value of long-term debt50,553 70,542 
Unamortized discount and issuance costs, net(318)(393)
Less: current portion of long-term debt(1,491)(2,999)
Long-term debt$48,744 $67,150 
___________________
(1)The weighted-average remaining lives of the 2014, 2017, 2020, 2021, April 2022, and December 2022 Notes were 12.6, 14.2, 16.7, 13.3, 13.3, and 5.9 years as of December 31, 2022. The combined weighted-average remaining life of the Notes was 13.1 years as of December 31, 2022.
Future Principal Payments for Debt
As of December 31, 2022, future principal payments for our total long-term debt were as follows (in millions):
Year Ended December 31,
2023$3,000 
20248,500 
20255,249 
20263,543 
20278,750 
Thereafter41,500 
$70,542 
v3.22.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022 (in millions):
 Year Ended December 31,  
 20232024202520262027ThereafterTotal
Long-term debt principal and interest$5,165 $10,618 $7,146 $5,253 $10,399 $63,815 $102,396 
Operating lease liabilities9,574 8,658 8,024 7,393 6,675 40,949 81,273 
Finance lease liabilities, including interest4,575 2,248 1,422 1,279 1,088 7,407 18,019 
Financing obligations, including interest (1)465 464 456 464 471 6,712 9,032 
Leases not yet commenced1,252 2,043 2,185 2,160 2,152 17,237 27,029 
Unconditional purchase obligations (2)8,156 7,217 5,366 4,525 3,419 6,093 34,776 
Other commitments (3)(4)3,173 1,608 1,027 982 622 8,652 16,064 
Total commitments$32,360 $32,856 $25,626 $22,056 $24,826 $150,865 $288,589 
___________________
(1)Includes non-cancellable financing obligations for fulfillment, sortation, and data center facilities. Excluding interest, current financing obligations of $196 million and $266 million are recorded within “Accrued expenses and other” and $6.2 billion and $6.7 billion are recorded within “Other long-term liabilities” as of December 31, 2021 and 2022. The weighted-average remaining term of the financing obligations was 18.8 years and 17.9 years and the weighted-average imputed interest rate was 3.2% and 3.1% as of December 31, 2021 and 2022.
(2)Includes unconditional purchase obligations related to long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets and certain products offered in our Whole Foods Market stores. 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.
(3)Includes asset retirement obligations, liabilities associated with digital media content agreements with initial terms greater than one year, and the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that are under construction.
(4)Excludes approximately $4.0 billion of accrued tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any.
v3.22.4
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Expense
Stock-based compensation expense is as follows (in millions):
Year Ended December 31,
202020212022
Cost of sales$283 $540 $757 
Fulfillment1,357 1,946 2,745 
Technology and content5,061 6,645 10,621 
Sales and marketing1,710 2,530 3,875 
General and administrative797 1,096 1,623 
Total stock-based compensation expense (1)$9,208 $12,757 $19,621 
___________________
(1)The related tax benefits were $1.9 billion, $2.7 billion, and $4.3 billion for 2020, 2021, and 2022.
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, 2020286.7 $73 
Units granted158.6 119 
Units vested(115.5)62 
Units forfeited(26.5)82 
Outstanding as of December 31, 2020303.3 100 
Units granted127.3 167 
Units vested(108.4)85 
Units forfeited(42.3)116 
Outstanding as of December 31, 2021279.9 134 
Units granted262.8 142 
Units vested(113.3)114 
Units forfeited(45.0)143 
Outstanding as of December 31, 2022384.4 144 
Scheduled Vesting of Outstanding Restricted Stock Units
Scheduled vesting for outstanding restricted stock units as of December 31, 2022, is as follows (in millions):
 Year Ended    
 20232024202520262027ThereafterTotal
Scheduled vesting — restricted stock units140.8 136.6 67.3 35.8 1.7 2.2 384.4 
v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Components of Provision for Income Taxes, Net
The components of the provision (benefit) for income taxes, net are as follows (in millions):
 Year Ended December 31,
202020212022
U.S. Federal:
Current$1,835 $2,129 $2,175 
Deferred(151)155 (6,686)
Total1,684 2,284 (4,511)
U.S. State:
Current626 763 1,074 
Deferred(190)(178)(1,302)
Total436 585 (228)
International:
Current956 2,209 1,682 
Deferred(213)(287)(160)
Total743 1,922 1,522 
Provision (benefit) for income taxes, net$2,863 $4,791 $(3,217)
Components of Income Before Income Taxes, Domestic and Foreign
U.S. and international components of income (loss) before income taxes are as follows (in millions):
 Year Ended December 31,
 202020212022
U.S.$20,219 $35,879 $(8,225)
International3,959 2,272 2,289 
Income (loss) before income taxes$24,178 $38,151 $(5,936)
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,
 202020212022
Income taxes computed at the federal statutory rate$5,078 $8,012 $(1,246)
Effect of:
Tax impact of foreign earnings and losses(538)(1,349)(370)
State taxes, net of federal benefits343 465 (173)
Tax credits(639)(1,136)(1,006)
Stock-based compensation (1)(1,107)(1,094)612 
Foreign income deduction (2)(372)(301)(1,258)
Other, net98 194 224 
Total$2,863 $4,791 $(3,217)
___________________
(1)Includes non-deductible stock-based compensation and excess tax benefits or shortfalls from stock-based compensation. Our tax provision includes $1.8 billion and $1.9 billion of excess tax benefits from stock-based compensation for 2020 and 2021, and a $33 million tax shortfall from stock-based compensation for 2022.
(2)U.S. companies are eligible for a deduction that lowers the effective tax rate on certain foreign income. This regime is referred to as the Foreign-Derived Intangible Income deduction.
Deferred Tax Assets and Liabilities
Deferred income tax assets and liabilities are as follows (in millions):
 December 31,
 20212022
Deferred tax assets (1):
Loss carryforwards U.S. - Federal/States228 386 
Loss carryforwards - Foreign2,417 2,831 
Accrued liabilities, reserves, and other expenses2,821 3,280 
Stock-based compensation2,738 4,295 
Depreciation and amortization941 1,009 
Operating lease liabilities15,399 18,285 
Capitalized research and development— 6,824 
Other items603 1,023 
Tax credits626 950 
Total gross deferred tax assets25,773 38,883 
Less valuation allowances (2)(3,596)(4,374)
Deferred tax assets, net of valuation allowances22,177 34,509 
Deferred tax liabilities:
Depreciation and amortization(3,562)(9,039)
Operating lease assets(14,422)(17,140)
Assets held for investment(4,019)— 
Other items(668)(817)
Net deferred tax assets (liabilities), net of valuation allowances$(494)$7,513 
 ___________________
(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 or future capital gains, as well as tax credits.
Reconciliation of Tax Contingencies
The reconciliation of our tax contingencies is as follows (in millions):
 December 31,
 202020212022
Gross tax contingencies – January 1$3,923 $2,820 $3,242 
Gross increases to tax positions in prior periods88 403 274 
Gross decreases to tax positions in prior periods(465)(354)(172)
Gross increases to current period tax positions507 507 706 
Settlements with tax authorities(1,207)(60)(20)
Lapse of statute of limitations(26)(74)(28)
Gross tax contingencies – December 31 (1)$2,820 $3,242 $4,002 
 ___________________
(1)As of December 31, 2022, we had approximately $4.0 billion of accrued tax contingencies of which $2.2 billion, if fully recognized, would decrease our effective tax rate.
v3.22.4
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2022
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,
 202020212022
North America
Net sales$236,282 $279,833 $315,880 
Operating expenses227,631 272,562 318,727 
Operating income (loss)$8,651 $7,271 $(2,847)
International
Net sales$104,412 $127,787 $118,007 
Operating expenses103,695 128,711 125,753 
Operating income (loss)$717 $(924)$(7,746)
AWS
Net sales$45,370 $62,202 $80,096 
Operating expenses31,839 43,670 57,255 
Operating income$13,531 $18,532 $22,841 
Consolidated
Net sales$386,064 $469,822 $513,983 
Operating expenses363,165 444,943 501,735 
Operating income22,899 24,879 12,248 
Total non-operating income (expense)1,279 13,272 (18,184)
Benefit (provision) for income taxes(2,863)(4,791)3,217 
Equity-method investment activity, net of tax16 4 (3)
Net income (loss)$21,331 $33,364 $(2,722)
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,
 202020212022
Net Sales:
Online stores (1)$197,346 $222,075 $220,004 
Physical stores (2)16,227 17,075 18,963 
Third-party seller services (3)80,461 103,366 117,716 
Subscription services (4)25,207 31,768 35,218 
Advertising services (5)19,773 31,160 37,739 
AWS45,370 62,202 80,096 
Other (6)1,680 2,176 4,247 
Consolidated$386,064 $469,822 $513,983 
___________________
(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)Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.
(6)Includes sales related to various other offerings, such as certain licensing and distribution of video content and shipping services, and our co-branded credit card agreements.
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,
 202020212022
United States$263,520 $314,006 $356,113 
Germany29,565 37,326 33,598 
United Kingdom26,483 31,914 30,074 
Japan20,461 23,071 24,396 
Rest of world46,035 63,505 69,802 
Consolidated$386,064 $469,822 $513,983 
Reconciliation of Assets from Segment to Consolidated Total segment assets reconciled to consolidated amounts are as follows (in millions):
 December 31,
 202020212022
North America (1)$108,405 $161,255 $185,268 
International (1)42,212 57,983 64,666 
AWS (2)47,574 63,835 88,491 
Corporate123,004 137,476 124,250 
Consolidated$321,195 $420,549 $462,675 
___________________
(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,
 202020212022
North America$54,912 $83,640 $90,076 
International15,375 21,718 23,347 
AWS32,151 43,245 60,324 
Corporate10,676 11,678 12,968 
Consolidated$113,114 $160,281 $186,715 
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,
 202020212022
North America (1)$29,889 $37,397 $23,682 
International (1)8,072 10,259 6,711 
AWS (2)16,530 22,047 27,755 
Corporate3,485 2,622 2,688 
Consolidated$57,976 $72,325 $60,836 
___________________
(1)Includes property and equipment added under finance leases of $5.6 billion, $3.6 billion, and $422 million in 2020, 2021, and 2022, and under build-to-suit lease arrangements of $2.7 billion, $5.6 billion, and $3.2 billion in 2020, 2021, and 2022.
(2)Includes property and equipment added under finance leases of $7.7 billion, $3.5 billion, and $253 million in 2020, 2021, and 2022, and under build-to-suit lease arrangements of $130 million, $51 million, and $20 million in 2020, 2021, and 2022.
Total depreciation and amortization expense, by segment, is as follows (in millions):
 Year Ended December 31,
 202020212022
North America$6,421 $9,234 $11,565 
International2,215 3,022 3,483 
AWS7,603 10,653 9,876 
Consolidated$16,239 $22,909 $24,924 
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Description of Business (Details)
 12 Months Ended
Dec. 31, 2022
segment
Accounting Policies [Abstract]  
Number of operating segments 3
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Common Stock Split (Details)
May 27, 2022
$ / shares
Dec. 31, 2022
$ / shares
Dec. 31, 2021
$ / shares
Accounting Policies [Abstract]      
Stock split ratio 20    
Common stock, par value (in usd per share) $ 0.01 $ 0.01 $ 0.01
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Use of Estimates (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Jan. 01, 2022
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]          
Depreciation and amortization expense     $ 41,921 $ 34,433 $ 25,180
Net income (loss)     $ (2,722) $ 33,364 $ 21,331
Basic earnings per share (in dollars per share)     $ (0.27) $ 3.30 $ 2.13
Diluted earnings per share (in dollars per share)     $ (0.27) $ 3.24 $ 2.09
Impairments   $ 720 $ 1,100    
Expenses for terminating contracts     480    
Severance costs   $ 640 720    
Change in useful lives of servers and networking equipment          
Property, Plant and Equipment [Line Items]          
Depreciation and amortization expense     (3,600)    
Net income (loss)     $ 2,800    
Basic earnings per share (in dollars per share)     $ 0.28    
Diluted earnings per share (in dollars per share)     $ 0.28    
Servers          
Property, Plant and Equipment [Line Items]          
Estimated useful lives of assets 5 years     4 years  
Networking equipment          
Property, Plant and Equipment [Line Items]          
Estimated useful lives of assets 6 years     5 years  
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Supplemental Cash Flow Information [Abstract]      
Cash paid for interest on debt $ 1,561 $ 1,098 $ 916
Cash paid for operating leases 8,633 6,722 4,475
Cash paid for interest on finance leases 374 521 612
Cash paid for interest on financing obligations 207 153 102
Cash paid for income taxes, net of refunds 6,035 3,688 1,713
Assets acquired under operating leases 18,800 25,369 16,217
Property and equipment acquired under finance leases, net of remeasurements and modifications 675 7,061 11,588
Property and equipment recognized during the construction period of build-to-suit lease arrangements 3,187 5,846 2,267
Property and equipment derecognized after the construction period of build-to-suit lease arrangements, with the associated leases recognized as operating $ 5,158 $ 230 $ 0
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Calculation of Diluted Shares (Details) - shares
shares in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounting Policies [Abstract]      
Shares used in computation of basic earnings per share 10,189 10,117 10,005
Total dilutive effect of outstanding stock awards 0 179 193
Shares used in computation of diluted earnings per share 10,189 10,296 10,198
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Revenue (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounting Policies [Abstract]      
Liability for return allowance $ 1,300 $ 1,000 $ 859
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]      
Rights to recover products from customers 948 882 852
Sales Returns and Allowances      
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]      
Additions to allowance for returns 5,500 5,100 3,500
Deductions to allowance for returns $ 5,200 $ 4,900 $ 3,600
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Marketing (Details) - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounting Policies [Abstract]      
Advertising and other promotional costs $ 20.6 $ 16.9 $ 10.9
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Other Operating Expense (Income), Net (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2022
Accounting Policies [Abstract]    
Impairments $ 720 $ 1,100
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Other Income (Expense), Net (Details) - USD ($)
shares in Millions, $ in Millions
 9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounting Policies [Abstract]        
Marketable equity securities valuation gains (losses)   $ (13,870) $ 11,526 $ 525
Equity warrant valuation gains (losses)   (2,132) 1,315 1,527
Upward adjustments relating to equity investments in private companies   76 1,866 342
Foreign currency gains (losses)   (340) (55) 35
Other, net   (540) (19) (58)
Total other income (expense), net   (16,806) 14,633 2,371
Schedule of Equity Method Investments [Line Items]        
Marketable equity securities valuation gains (losses)   (13,870) 11,526 525
Loss from operations   12,248 24,879 22,899
Net income (loss)   (2,722) 33,364 21,331
Total current assets   146,791 161,580  
Total assets   462,675 420,549 321,195
Current liabilities   155,393 142,266  
Equity Method Investment, Nonconsolidated Investee or Group of Investees        
Accounting Policies [Abstract]        
Marketable equity securities valuation gains (losses)   (12,700) 11,800  
Schedule of Equity Method Investments [Line Items]        
Marketable equity securities valuation gains (losses)   $ (12,700) 11,800  
Equity investment, shares held (in shares)   158    
Equity investment, ownership interest   17.00%    
Equity investment, voting interest   16.00%    
Revenue $ 995   55 0
Gross profit (2,123)   (465) 0
Loss from operations (5,061)   (4,220) (1,021)
Net income (loss) (5,029)   (4,688) $ (1,018)
Total current assets 14,424   18,559  
Total assets 19,023   22,294  
Current liabilities 2,109   1,313  
Total liabilities $ 3,686   $ 2,780  
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Fair Value of Financial Instruments (Details) - USD ($)
$ in Billions
Dec. 31, 2022
Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Warrants, location Other assets Other assets
Fair Value, Inputs, Level 2 | Equity Warrant    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair value of warrants $ 2.1 $ 3.4
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Inventories (Details) - USD ($)
$ in Billions
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]    
Inventory valuation allowance $ 2.8 $ 2.6
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Accounts Receivable, Net and Other (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Accounts receivable, net and other $ 42,360 $ 32,891  
Allowance for doubtful accounts 1,400 1,100 $ 1,100
Additions to allowance for doubtful accounts 1,600 1,000 1,400
Deductions to allowance for doubtful accounts 1,300 1,100 $ 1,000
Customer receivables      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Accounts receivable, net and other 26,600 20,200  
Vendor receivables      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Accounts receivable, net and other 6,900 5,300  
Seller receivables      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Accounts receivable, net and other $ 1,300 $ 1,000  
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Property and Equipment, Net (Details)
 12 Months Ended
Jan. 01, 2022
Dec. 31, 2022
Dec. 31, 2021
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 5 years   4 years
Networking equipment      
Property, Plant and Equipment [Line Items]      
Estimated useful lives of assets 6 years   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  
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Leases (Details)
 12 Months Ended
Dec. 31, 2022
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
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Goodwill and Indefinite-Lived Intangible Assets (Details)
$ in Millions
Apr. 01, 2022
USD ($)
Accounting Policies [Abstract]  
Goodwill and indefinite-lived intangible asset impairment $ 0
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Digital Video and Music Content (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounting Policies [Abstract]        
Weighted average remaining life, capitalized video content   2 years 7 months 6 days    
Video and music content, capitalized costs   $ 16,700 $ 10,700  
Video and music content, expense   16,600 13,000  
Change in Accounting Estimate [Line Items]        
Net income (loss)   $ (2,722) $ 33,364 $ 21,331
Forecast | Change in weighted average life of capitalized video content        
Change in Accounting Estimate [Line Items]        
Net income (loss) $ 1,000      
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Investments (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]    
Equity investments in private companies $ 715 $ 603
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Accrued Expenses and Other (Details) - USD ($)
$ in Billions
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]    
Payroll-related liabilities $ 7.7 $ 7.4
Disaggregation of Revenue [Line Items]    
Customer liability 16.1 14.0
Gift card    
Disaggregation of Revenue [Line Items]    
Customer liability $ 5.4 $ 5.2
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Self-Insurance Liabilities (Details) - USD ($)
$ in Billions
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]    
Self-insurance liabilities $ 4.0 $ 2.2
Increase in self-insurance liabilities $ 1.3  
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Unearned Revenue (Details) - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]    
Customer liability $ 16.1 $ 14.0
Unearned revenue, revenue recognized 11.3  
Unearned revenue, long-term 2.9 $ 2.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01    
Accounting Policies [Abstract]    
Remaining performance obligation, contracts exceeding one year $ 110.4  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Remaining performance obligation, weighted average remaining life 3 years 8 months 12 days  
v3.22.4
Description of Business, Accounting Policies, and Supplemental Disclosures - Foreign Currency (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounting Policies [Abstract]      
Transaction gain (loss) arising from intercompany foreign currency transactions $ 386 $ 19 $ (118)
v3.22.4
Financial Instruments - Fair Values on Recurring Basis (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Equity Securities, FV-NI, Gain (Loss)      
Equity securities, unrealized gain (loss) $ (13,600) $ 11,600 $ 448
Equity Method Investment, Nonconsolidated Investee or Group of Investees      
Equity Securities, FV-NI, Gain (Loss)      
Equity investment, fair value 2,900 15,600  
Equity investment, discount due to lack of marketability   800  
Recurring      
Schedule of Investments [Line Items]      
Cash 10,666 10,942  
Cost or Amortized Cost      
Cash, cash equivalents and short-term investments 67,484 79,012  
Gross Unrealized Gains      
Cash equivalents and marketable securities 0 93  
Gross Unrealized Losses      
Cash equivalents and marketable securities (802) (182)  
Total Estimated Fair Value      
Cash, cash equivalents and short-term investments 70,391 96,309  
Less: Restricted cash, cash equivalents, and marketable securities (365) (260)  
Total cash, cash equivalents, and marketable securities 70,026 96,049  
Recurring | Level 1 securities      
Total Estimated Fair Value      
Equity securities 3,709 1,646  
Recurring | Level 1 securities | Money market funds      
Schedule of Investments [Line Items]      
Money market funds 27,899 20,312  
Recurring | Level 1 securities | Money market funds | Money market funds      
Schedule of Investments [Line Items]      
Money market funds 27,899    
Recurring | Level 2 securities      
Total Estimated Fair Value      
Equity securities   15,740  
Recurring | Level 2 securities | Foreign government and agency securities      
Cost or Amortized Cost      
Cash equivalents and marketable securities 537 181  
Gross Unrealized Gains      
Cash equivalents and marketable securities 0 0  
Gross Unrealized Losses      
Cash equivalents and marketable securities (2) 0  
Total Estimated Fair Value      
Cash equivalents and marketable securities 535 181  
Recurring | Level 2 securities | U.S. government and agency securities      
Cost or Amortized Cost      
Cash equivalents and marketable securities 2,301 4,316  
Gross Unrealized Gains      
Cash equivalents and marketable securities 0 9  
Gross Unrealized Losses      
Cash equivalents and marketable securities (155) (25)  
Total Estimated Fair Value      
Cash equivalents and marketable securities 2,146 4,300  
Recurring | Level 2 securities | Corporate debt securities      
Cost or Amortized Cost      
Cash equivalents and marketable securities 23,111 35,810  
Gross Unrealized Gains      
Cash equivalents and marketable securities 0 75  
Gross Unrealized Losses      
Cash equivalents and marketable securities (484) (121)  
Total Estimated Fair Value      
Cash equivalents and marketable securities 22,627 35,764  
Recurring | Level 2 securities | Asset-backed securities      
Cost or Amortized Cost      
Cash equivalents and marketable securities 2,721 6,763  
Gross Unrealized Gains      
Cash equivalents and marketable securities 0 7  
Gross Unrealized Losses      
Cash equivalents and marketable securities (149) (32)  
Total Estimated Fair Value      
Cash equivalents and marketable securities 2,572 6,738  
Recurring | Level 2 securities | Other fixed income securities      
Cost or Amortized Cost      
Cash equivalents and marketable securities 249 688  
Gross Unrealized Gains      
Cash equivalents and marketable securities 0 2  
Gross Unrealized Losses      
Cash equivalents and marketable securities (12) (4)  
Total Estimated Fair Value      
Cash equivalents and marketable securities $ 237 $ 686  
v3.22.4
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, 2022
Dec. 31, 2021
Dec. 31, 2020
Debt Securities, Available-for-Sale, Realized Gain (Loss) [Abstract]      
Realized gains $ 43 $ 85 $ 92
Realized losses $ 341 $ 38 $ 56
v3.22.4
Financial Instruments - Contractual Maturities (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Amortized Cost  
Due within one year $ 46,854
Due after one year through five years 7,622
Due after five years through ten years 602
Due after ten years 1,740
Total 56,818
Estimated Fair Value  
Due within one year 46,782
Due after one year through five years 7,047
Due after five years through ten years 565
Due after ten years 1,622
Total $ 56,016
v3.22.4
Financial Instruments - Reconciliation to Cash Flow (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reconciliation to Cash Flow [Abstract]        
Cash and cash equivalents $ 53,888 $ 36,220    
Restricted cash included in accounts receivable, net and other 358 242    
Restricted cash included in other assets 7 15    
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 54,253 $ 36,477 $ 42,377 $ 36,410
v3.22.4
Property and Equipment - Components (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]      
Gross property and equipment $ 283,730 $ 238,800  
Total accumulated depreciation and amortization 97,015 78,519  
Total property and equipment, net 186,715 160,281 $ 113,114
Land and buildings      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 91,650 81,104  
Equipment      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 157,458 128,683  
Other assets      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 4,602 4,118  
Construction in progress      
Property, Plant and Equipment [Line Items]      
Gross property and equipment $ 30,020 $ 24,895  
v3.22.4
Property and Equipment - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Abstract]      
Depreciation and amortization expense $ 24,924 $ 22,909 $ 16,239
Amortization of lease assets $ 6,097 $ 9,857 $ 8,452
v3.22.4
Leases - Additional Information (Details) - USD ($)
$ in Billions
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
Finance lease asset location Property and equipment, net Property and equipment, net
Finance lease asset $ 68.0 $ 72.2
Accumulated amortization associated with finance leases $ 45.2 $ 43.4
v3.22.4
Leases - Lease Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Lease, Cost [Abstract]      
Operating lease cost $ 8,847 $ 7,199 $ 5,019
Finance lease cost:      
Amortization of lease assets 6,097 9,857 8,452
Interest on lease liabilities 361 473 617
Finance lease cost 6,458 10,330 9,069
Variable lease cost 1,852 1,556 1,238
Total lease cost $ 17,157 $ 19,085 $ 15,326
v3.22.4
Leases - Other Operating and Finance Lease Information (Details)
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
Weighted-average remaining lease term – operating leases 11 years 7 months 6 days 11 years 3 months 18 days
Weighted-average remaining lease term – finance leases 10 years 3 months 18 days 8 years 1 month 6 days
Weighted-average discount rate – operating leases 2.80% 2.20%
Weighted-average discount rate – finance leases 2.30% 2.00%
v3.22.4
Leases - Operating and Finance Lease Reconciliation (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
Operating leases, gross lease liabilities $ 81,273 $ 66,269
Finance leases, gross lease liabilities 18,019 25,866
Gross lease liabilities 99,292 92,135
Imputed interest - operating leases (12,233) (7,939)
Imputed interest - finance leases (2,236) (2,113)
Imputed interest (14,469) (10,052)
Present value of operating leases 69,040 58,330
Present value of finance leases 15,783 23,753
Present value of lease liabilities 84,823 82,083
Current portion of operating leases (7,458) (6,349)
Current portion of finance leases (4,397) (8,083)
Current portion of lease liabilities (11,855) (14,432)
Total long-term operating lease liabilities 61,582 51,981
Total long-term finance lease liabilities 11,386 15,670
Long-term lease liabilities $ 72,968 $ 67,651
Operating lease liabilities, current, location Accrued expenses and other Accrued expenses and other
Finance lease liabilities, current, location Accrued expenses and other Accrued expenses and other
Operating lease liabilities, long-term, location Long-term lease liabilities Long-term lease liabilities
Finance lease liabilities, long-term, location Long-term lease liabilities Long-term lease liabilities
v3.22.4
Acquisitions, Goodwill, and Acquired Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Mar. 17, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]        
Goodwill   $ 20,288 $ 15,371 $ 15,017
Amortization expense for acquired intangibles   604 512 509
Other Acquisitions        
Business Acquisition [Line Items]        
Aggregate purchase price   $ 141 $ 496 1,200
Amount capitalized to in-process research and development intangible assets       $ 1,100
MGM Holdings Inc        
Business Acquisition [Line Items]        
Cash paid, net of cash acquired $ 6,100      
Debt assumed 2,500      
Video content assets acquired 3,400      
Goodwill $ 4,900      
v3.22.4
Acquisitions, Goodwill, and Acquired Intangible Assets - Summary of Goodwill Activity by Segment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Goodwill [Roll Forward]    
Goodwill, balance at beginning of period $ 15,371 $ 15,017
New acquisitions 4,997 366
Other adjustments (80) (12)
Goodwill, balance at end of period 20,288 15,371
North America    
Goodwill [Roll Forward]    
Goodwill, balance at beginning of period 12,758 12,527
New acquisitions 3,943 230
Other adjustments (80) 1
Goodwill, balance at end of period 16,621 12,758
International    
Goodwill [Roll Forward]    
Goodwill, balance at beginning of period 1,327 1,288
New acquisitions 1,054 60
Other adjustments 30 (21)
Goodwill, balance at end of period 2,411 1,327
AWS    
Goodwill [Roll Forward]    
Goodwill, balance at beginning of period 1,286 1,202
New acquisitions 0 76
Other adjustments (30) 8
Goodwill, balance at end of period $ 1,256 $ 1,286
v3.22.4
Acquisitions, Goodwill, and Acquired Intangible Assets - Acquired Intangible Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Acquired Finite-Lived Intangible Assets [Line Items]    
Acquired finite-lived intangible assets, gross $ 7,135 $ 5,786
Accumulated amortization (2,185) (1,826)
Acquired finite-lived intangible assets, net 4,950 3,960
Acquired indefinite-lived intangible assets - IPR&D and other 1,147 1,147
Acquired Intangibles, Gross 8,282 6,933
Acquired Intangibles, Net $ 6,097 5,107
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 $ 2,407 2,286
Accumulated amortization (601) (548)
Acquired finite-lived intangible assets, net $ 1,806 1,738
Weighted Average Life Remaining 18 years 7 months 6 days  
Contract-based    
Acquired Finite-Lived Intangible Assets [Line Items]    
Acquired finite-lived intangible assets, gross $ 3,661 2,327
Accumulated amortization (813) (565)
Acquired finite-lived intangible assets, net $ 2,848 1,762
Weighted Average Life Remaining 12 years 9 months 18 days  
Technology- and content-based    
Acquired Finite-Lived Intangible Assets [Line Items]    
Acquired finite-lived intangible assets, gross $ 883 976
Accumulated amortization (643) (610)
Acquired finite-lived intangible assets, net $ 240 366
Weighted Average Life Remaining 3 years 2 months 12 days  
Customer-related    
Acquired Finite-Lived Intangible Assets [Line Items]    
Acquired finite-lived intangible assets, gross $ 184 197
Accumulated amortization (128) (103)
Acquired finite-lived intangible assets, net $ 56 $ 94
Weighted Average Life Remaining 2 years 2 months 12 days  
v3.22.4
Acquisitions, Goodwill, and Acquired Intangible Assets - Expected Future Amortization Expense of Acquired Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Year Ended December 31,    
2023 $ 530  
2024 456  
2025 371  
2026 324  
2027 314  
Thereafter 2,955  
Acquired finite-lived intangible assets, net $ 4,950 $ 3,960
v3.22.4
Debt - Additional Information (Details)
 1 Months Ended 12 Months Ended
Jan. 31, 2023
USD ($)
Nov. 30, 2022
USD ($)
extension
Dec. 31, 2022
USD ($)
extension
Dec. 31, 2022
EUR (€)
Apr. 30, 2022
USD ($)
Mar. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Oct. 31, 2021
USD ($)
Debt Instrument [Line Items]                
Total face value of long-term debt     $ 70,542,000,000       $ 50,553,000,000  
Commercial Paper                
Debt Instrument [Line Items]                
Commercial paper, maximum borrowing capacity       € 3,000,000,000   $ 20,000,000,000 10,000,000,000  
Credit term     397 days          
Commercial paper     $ 6,800,000,000       $ 725,000,000  
Weighted average effective interest rate     4.47% 4.47%     0.08%  
Short Term Credit Agreement | Credit Facility                
Debt Instrument [Line Items]                
Maximum borrowing capacity   $ 10,000,000,000            
Commitment fee percentage   0.05%            
Credit term   364 days            
Credit Agreement, number of extensions | extension   1            
Credit Agreement, additional term   364 days            
Short-term borrowings outstanding     $ 0          
Short Term Credit Agreement | Secured Overnight Financing Rate | Credit Facility                
Debt Instrument [Line Items]                
Basis spread on variable rate   0.45%            
Short Term Credit Facilities, Working Capital Purposes                
Debt Instrument [Line Items]                
Short-term borrowings outstanding     1,200,000,000       $ 318,000,000  
Term Loan | Subsequent event | Loans Payable                
Debt Instrument [Line Items]                
Issuance amount $ 8,000,000,000              
Credit term 364 days              
Term Loan | Secured Overnight Financing Rate | Subsequent event | Loans Payable                
Debt Instrument [Line Items]                
Basis spread on variable rate 0.75%              
Term Loan | Secured Overnight Financing Rate | Interest rate if option to extend exercised | Subsequent event | Loans Payable                
Debt Instrument [Line Items]                
Basis spread on variable rate 1.05%              
Senior Notes                
Debt Instrument [Line Items]                
Total face value of long-term debt     69,500,000,000          
Estimated fair value of notes     61,400,000,000       53,300,000,000  
Senior Notes | April 2022 Notes issuance of $12.8 billion                
Debt Instrument [Line Items]                
Total face value of long-term debt     12,750,000,000       0  
Issuance amount     12,800,000,000   $ 12,800,000,000      
Senior Notes | December 2022 Notes issuance of $8.3 billion                
Debt Instrument [Line Items]                
Total face value of long-term debt     8,250,000,000       0  
Issuance amount     8,300,000,000          
Line of Credit and Other Long-term Debt                
Debt Instrument [Line Items]                
Total face value of long-term debt     1,000,000,000          
Credit Facility | October 2016 Revolving Credit Facility                
Debt Instrument [Line Items]                
Maximum borrowing capacity     $ 1,500,000,000         $ 1,000,000,000
Commitment fee percentage     0.45%          
Borrowings outstanding     $ 1,000,000,000       $ 803,000,000  
Stated interest rate     5.60% 5.60%     1.50%  
Collateral amount     $ 1,200,000,000       $ 918,000,000  
Credit Facility | October 2016 Revolving Credit Facility | LIBOR                
Debt Instrument [Line Items]                
Basis spread on variable rate     1.25%          
Credit Facility | April 2018 Revolving Credit Facility                
Debt Instrument [Line Items]                
Maximum borrowing capacity           $ 10,000,000,000 7,000,000,000  
Commitment fee percentage     0.03%          
Borrowings outstanding     $ 0       $ 0  
Credit Agreement, number of extensions | extension     3          
Credit Agreement, additional term     1 year          
Credit Facility | April 2018 Revolving Credit Facility | LIBOR                
Debt Instrument [Line Items]                
Basis spread on variable rate     0.45%          
Credit Facility | Short Term Credit Facilities, Working Capital Purposes | Letter of credit                
Debt Instrument [Line Items]                
Unused capacity     $ 6,900,000,000          
v3.22.4
Debt - Long-Term Debt Obligations (Details) - USD ($)
 12 Months Ended
Dec. 31, 2022
Apr. 30, 2022
Dec. 31, 2021
Debt Instrument [Line Items]      
Total face value of long-term debt $ 70,542,000,000   $ 50,553,000,000
Less: current portion of long-term debt (2,999,000,000)   (1,491,000,000)
Long-term debt 67,150,000,000   48,744,000,000
Senior Notes      
Debt Instrument [Line Items]      
Total face value of long-term debt 69,500,000,000    
Unamortized discount and issuance costs, net $ (393,000,000)   (318,000,000)
Weighted average remaining lives term 13 years 1 month 6 days    
Senior Notes | 2012 Notes issuance of $3.0 billion      
Debt Instrument [Line Items]      
Issuance amount $ 3,000,000,000    
Stated Interest Rates 2.50%    
Effective Interest Rates 2.66%    
Total face value of long-term debt $ 0   1,250,000,000
Senior Notes | 2014 Notes issuance of $6.0 billion      
Debt Instrument [Line Items]      
Issuance amount 6,000,000,000    
Total face value of long-term debt $ 4,000,000,000   4,000,000,000
Weighted average remaining lives term 12 years 7 months 6 days    
Senior Notes | 2014 Notes issuance of $6.0 billion | Minimum      
Debt Instrument [Line Items]      
Stated Interest Rates 3.80%    
Effective Interest Rates 3.90%    
Senior Notes | 2014 Notes issuance of $6.0 billion | Maximum      
Debt Instrument [Line Items]      
Stated Interest Rates 4.95%    
Effective Interest Rates 5.12%    
Senior Notes | 2017 Notes issuance of $17.0 billion      
Debt Instrument [Line Items]      
Issuance amount $ 17,000,000,000    
Total face value of long-term debt $ 16,000,000,000   16,000,000,000
Weighted average remaining lives term 14 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    
Total face value of long-term debt $ 10,000,000,000   10,000,000,000
Weighted average remaining lives term 16 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%    
Senior Notes | 2021 Notes issuance of $18.5 billion      
Debt Instrument [Line Items]      
Issuance amount $ 18,500,000,000    
Total face value of long-term debt $ 18,500,000,000   18,500,000,000
Weighted average remaining lives term 13 years 3 months 18 days    
Senior Notes | 2021 Notes issuance of $18.5 billion | Minimum      
Debt Instrument [Line Items]      
Stated Interest Rates 0.25%    
Effective Interest Rates 0.35%    
Senior Notes | 2021 Notes issuance of $18.5 billion | Maximum      
Debt Instrument [Line Items]      
Stated Interest Rates 3.25%    
Effective Interest Rates 3.31%    
Senior Notes | April 2022 Notes issuance of $12.8 billion      
Debt Instrument [Line Items]      
Issuance amount $ 12,800,000,000 $ 12,800,000,000  
Total face value of long-term debt $ 12,750,000,000   0
Weighted average remaining lives term 13 years 3 months 18 days    
Senior Notes | April 2022 Notes issuance of $12.8 billion | Minimum      
Debt Instrument [Line Items]      
Stated Interest Rates 2.73%    
Effective Interest Rates 2.83%    
Senior Notes | April 2022 Notes issuance of $12.8 billion | Maximum      
Debt Instrument [Line Items]      
Stated Interest Rates 4.10%    
Effective Interest Rates 4.15%    
Senior Notes | December 2022 Notes issuance of $8.3 billion      
Debt Instrument [Line Items]      
Issuance amount $ 8,300,000,000    
Total face value of long-term debt $ 8,250,000,000   0
Weighted average remaining lives term 5 years 10 months 24 days    
Senior Notes | December 2022 Notes issuance of $8.3 billion | Minimum      
Debt Instrument [Line Items]      
Stated Interest Rates 4.55%    
Effective Interest Rates 4.61%    
Senior Notes | December 2022 Notes issuance of $8.3 billion | Maximum      
Debt Instrument [Line Items]      
Stated Interest Rates 4.70%    
Effective Interest Rates 4.83%    
Credit Facility | Revolving Credit Facility      
Debt Instrument [Line Items]      
Total face value of long-term debt $ 1,042,000,000   $ 803,000,000
v3.22.4
Debt - Future Principal Payment for Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Year Ended December 31,    
2023 $ 3,000  
2024 8,500  
2025 5,249  
2026 3,543  
2027 8,750  
Thereafter 41,500  
Long-term debt, total $ 70,542 $ 50,553
v3.22.4
Commitments and Contingencies - Principal Contractual Commitments Excluding Open Orders (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Long-term debt principal and interest        
2023 $ 5,165      
2024 10,618      
2025 7,146      
2026 5,253      
2027 10,399      
Thereafter 63,815      
Long-term debt principal and interest 102,396      
Operating lease liabilities        
2023 9,574      
2024 8,658      
2025 8,024      
2026 7,393      
2027 6,675      
Thereafter 40,949      
Operating leases, gross lease liabilities 81,273 $ 66,269    
Finance lease liabilities, including interest        
2023 4,575      
2024 2,248      
2025 1,422      
2026 1,279      
2027 1,088      
Thereafter 7,407      
Finance leases, gross lease liabilities 18,019 25,866    
Financing obligations, including interest        
2023 465      
2024 464      
2025 456      
2026 464      
2027 471      
Thereafter 6,712      
Financing obligations, including interest 9,032      
Leases not yet commenced        
2023 1,252      
2024 2,043      
2025 2,185      
2026 2,160      
2027 2,152      
Thereafter 17,237      
Total 27,029      
Unconditional purchase obligations        
2023 8,156      
2024 7,217      
2025 5,366      
2026 4,525      
2027 3,419      
Thereafter 6,093      
Unconditional purchase obligations 34,776      
Other commitments        
2023 3,173      
2024 1,608      
2025 1,027      
2026 982      
2027 622      
Thereafter 8,652      
Other commitments 16,064      
Total commitments        
2023 32,360      
2024 32,856      
2025 25,626      
2026 22,056      
2027 24,826      
Thereafter 150,865      
Total 288,589      
Current financing obligations 266 196    
Noncurrent financing obligations $ 6,700 $ 6,200    
Weighted-average remaining term of financing obligations 17 years 10 months 24 days 18 years 9 months 18 days    
Weighted-average imputed interest rate of financing obligations 3.10% 3.20%    
Accrued tax contingencies $ 4,002 $ 3,242 $ 2,820 $ 3,923
v3.22.4
Commitments and Contingencies - Commitments Narrative (Details) - USD ($)
$ in Billions
 1 Months Ended
Aug. 31, 2022
Jul. 31, 2022
1Life Healthcare    
Other Commitments [Line Items]    
Aggregate purchase price   $ 3.9
iRobot Corporation    
Other Commitments [Line Items]    
Aggregate purchase price $ 1.7  
v3.22.4
Commitments and Contingencies - Legal Proceedings (Details) - Pending Litigation
€ in Millions, $ in Millions
Apr. 30, 2022
USD ($)
Dec. 31, 2021
EUR (€)
Jul. 31, 2021
EUR (€)
Feb. 28, 2017
USD ($)
Eolas Technologies, Inc. | Minimum        
Loss Contingencies [Line Items]        
Estimate of possible loss       $ 130
Eolas Technologies, Inc. | Maximum        
Loss Contingencies [Line Items]        
Estimate of possible loss       $ 250
BroadbandiTV | Minimum        
Loss Contingencies [Line Items]        
Estimate of possible loss $ 166      
BroadbandiTV | Maximum        
Loss Contingencies [Line Items]        
Estimate of possible loss $ 986      
Luxembourg National Commission Matter        
Loss Contingencies [Line Items]        
Estimate of possible loss | €     € 746  
Italian Competition Authority Matter        
Loss Contingencies [Line Items]        
Estimate of possible loss | €   € 1,130    
v3.22.4
Stockholders' Equity - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Mar. 31, 2022
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 10,600,000,000 10,500,000,000 10,400,000,000    
Repurchases of common stock (in shares) 46,200,000        
Repurchases of common stock $ 6,000,000,000 $ 0 $ 0    
Amount remaining under repurchase program 6,100,000,000        
Net unrecognized compensation cost related to unvested stock-based compensation arrangements $ 23,800,000,000        
Compensation expense expected to be expensed in next twelve months expected to exceed, percentage 50.00%        
Net unrecognized compensation cost related to unvested stock-based compensation arrangements, weighted average recognition period (in years) 1 year 1 month 6 days        
Estimated forfeiture rate 26.50% 26.50% 26.70%    
Common stock available for future issuance to employees (in shares) 1,700,000,000        
February 2016 Program          
Class of Stock [Line Items]          
Stock repurchase, authorized amount         $ 5,000,000,000
March 2022 Program          
Class of Stock [Line Items]          
Stock repurchase, authorized amount       $ 10,000,000,000  
Restricted Stock Units          
Class of Stock [Line Items]          
Fair value of units vested $ 12,800,000,000 $ 18,200,000,000 $ 15,500,000,000    
Minimum          
Class of Stock [Line Items]          
Award vesting period 2 years        
Maximum          
Class of Stock [Line Items]          
Award vesting period 5 years        
v3.22.4
Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 19,621 $ 12,757 $ 9,208
Tax benefits from stock-based compensation expense 4,300 2,700 1,900
Cost of sales      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 757 540 283
Fulfillment      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 2,745 1,946 1,357
Technology and content      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 10,621 6,645 5,061
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 3,875 2,530 1,710
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 1,623 $ 1,096 $ 797
v3.22.4
Stockholders' Equity - Restricted Stock Unit Activity (Details) - Restricted Stock Units - $ / shares
shares in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Number of Units      
Beginning balance (in shares) 279.9 303.3 286.7
Units granted (in shares) 262.8 127.3 158.6
Units vested (in shares) (113.3) (108.4) (115.5)
Units forfeited (in shares) (45.0) (42.3) (26.5)
Ending balance (in shares) 384.4 279.9 303.3
Weighted Average Grant-Date Fair Value      
Beginning Balance (in dollars per share) $ 134 $ 100 $ 73
Units granted (in dollars per share) 142 167 119
Units vested (in dollars per share) 114 85 62
Units forfeited (in dollars per share) 143 116 82
Ending Balance (in dollars per share) $ 144 $ 134 $ 100
v3.22.4
Stockholders' Equity - Scheduled Vesting for Outstanding Restricted Stock Units (Details) - Restricted Stock Units - shares
shares in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Scheduled vesting — restricted stock units        
2022 (in shares) 140.8      
2023 (in shares) 136.6      
2024 (in shares) 67.3      
2025 (in shares) 35.8      
2026 (in shares) 1.7      
Thereafter (in shares) 2.2      
Total (in shares) 384.4 279.9 303.3 286.7
v3.22.4
Income Taxes - Additional Information (Details)
€ in Millions, $ in Millions
 3 Months Ended 12 Months Ended
Oct. 04, 2017
EUR (€)
Dec. 31, 2021
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Income Tax Disclosure [Abstract]          
Provision (benefit) for income taxes, net     $ (3,217) $ 4,791 $ 2,863
Cash taxes paid, net of refunds     6,035 3,688 1,713
Utilization of deferred tax assets previously subject to valuation allowance   $ 2,600      
Foreign income deduction, cumulative     655    
Income Taxes [Line Items]          
Accrued interest and penalties, net of federal income tax benefit, related to tax contingencies   $ 110 103 110  
Interest and penalties expense (benefit), net of federal income tax benefit     (7) 28 (48)
International          
Income Tax Disclosure [Abstract]          
Provision (benefit) for income taxes, net     1,522 $ 1,922 $ 743
Income Taxes [Line Items]          
Net operating loss carryforwards     $ 10,400    
International | Luxembourg Tax Administration          
Income Taxes [Line Items]          
Tax examination, estimate of additional tax expense | € € 250        
v3.22.4
Income Taxes - Components of Provision for Income Taxes, Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
International:      
Provision (benefit) for income taxes, net $ (3,217) $ 4,791 $ 2,863
U.S. Federal      
U.S. Federal:      
Current 2,175 2,129 1,835
Deferred (6,686) 155 (151)
International:      
Provision (benefit) for income taxes, net (4,511) 2,284 1,684
U.S. State      
U.S. State:      
Current 1,074 763 626
Deferred (1,302) (178) (190)
International:      
Provision (benefit) for income taxes, net (228) 585 436
International      
International:      
Current 1,682 2,209 956
Deferred (160) (287) (213)
Provision (benefit) for income taxes, net $ 1,522 $ 1,922 $ 743
v3.22.4
Income Taxes - U.S. and International Components of Income Before Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
U.S. $ (8,225) $ 35,879 $ 20,219
International 2,289 2,272 3,959
Income (loss) before income taxes $ (5,936) $ 38,151 $ 24,178
v3.22.4
Income Taxes - Items Accounting for Differences Between Income Taxes Computed at Federal Statutory Rate and Provision Recorded for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Income taxes computed at the federal statutory rate $ (1,246) $ 8,012 $ 5,078
Effect of:      
Tax impact of foreign earnings and losses (370) (1,349) (538)
State taxes, net of federal benefits (173) 465 343
Tax credits (1,006) (1,136) (639)
Stock-based compensation 612 (1,094) (1,107)
Foreign income deduction (1,258) (301) (372)
Other, net 224 194 98
Provision (benefit) for income taxes, net (3,217) 4,791 2,863
Excess tax (benefits) deficiency from stock-based compensation $ 33 $ (1,900) $ (1,800)
v3.22.4
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Deferred tax assets:    
Loss carryforwards U.S. - Federal/States $ 386 $ 228
Loss carryforwards - Foreign 2,831 2,417
Accrued liabilities, reserves, and other expenses 3,280 2,821
Stock-based compensation 4,295 2,738
Depreciation and amortization 1,009 941
Operating lease liabilities 18,285 15,399
Capitalized research and development 6,824 0
Other items 1,023 603
Tax credits 950 626
Total gross deferred tax assets 38,883 25,773
Less valuation allowance (4,374) (3,596)
Deferred tax assets, net of valuation allowances 34,509 22,177
Deferred tax liabilities:    
Depreciation and amortization (9,039) (3,562)
Operating lease assets (17,140) (14,422)
Assets held for investment 0 (4,019)
Other items (817) (668)
Net deferred tax liabilities, net of valuation allowances   $ (494)
Net deferred tax assets, net of valuation allowances $ 7,513  
v3.22.4
Income Taxes - Reconciliation of Tax Contingencies (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Gross tax contingencies – beginning of period $ 3,242 $ 2,820 $ 3,923
Gross increases to tax positions in prior periods 274 403 88
Gross decreases to tax positions in prior periods (172) (354) (465)
Gross increases to current period tax positions 706 507 507
Settlements with tax authorities (20) (60) (1,207)
Lapse of statute of limitations (28) (74) (26)
Gross tax contingencies - end of period 4,002 $ 3,242 $ 2,820
Tax contingencies, that if fully recognized, would decrease our effective tax rate $ 2,200    
v3.22.4
Segment Information - Additional Information (Details)
$ in Billions
 12 Months Ended
Dec. 31, 2022
USD ($)
segment
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Segment Reporting [Abstract]      
Number of operating segments | segment 3    
United States      
Segment Reporting Information [Line Items]      
Property and equipment, net and operating leases $ 180.0 $ 155.0 $ 109.5
Rest of world      
Segment Reporting Information [Line Items]      
Property and equipment, net and operating leases $ 72.9 $ 61.3 $ 41.2
v3.22.4
Segment Information - Reportable Segments and Reconciliation to Consolidated Net Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting Information [Line Items]      
Net sales $ 513,983 $ 469,822 $ 386,064
Operating expenses 501,735 444,943 363,165
Operating income (loss) 12,248 24,879 22,899
Total non-operating income (expense) (18,184) 13,272 1,279
Benefit (provision) for income taxes 3,217 (4,791) (2,863)
Equity-method investment activity, net of tax (3) 4 16
Net income (loss) (2,722) 33,364 21,331
North America      
Segment Reporting Information [Line Items]      
Net sales 315,880 279,833 236,282
Operating expenses 318,727 272,562 227,631
Operating income (loss) (2,847) 7,271 8,651
International      
Segment Reporting Information [Line Items]      
Net sales 118,007 127,787 104,412
Operating expenses 125,753 128,711 103,695
Operating income (loss) (7,746) (924) 717
AWS      
Segment Reporting Information [Line Items]      
Net sales 80,096 62,202 45,370
Operating expenses 57,255 43,670 31,839
Operating income (loss) $ 22,841 $ 18,532 $ 13,531
v3.22.4
Segment Information - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]      
Net sales $ 513,983 $ 469,822 $ 386,064
Online stores      
Disaggregation of Revenue [Line Items]      
Net sales 220,004 222,075 197,346
Physical stores      
Disaggregation of Revenue [Line Items]      
Net sales 18,963 17,075 16,227
Third-party seller services      
Disaggregation of Revenue [Line Items]      
Net sales 117,716 103,366 80,461
Subscription services      
Disaggregation of Revenue [Line Items]      
Net sales 35,218 31,768 25,207
Advertising services      
Disaggregation of Revenue [Line Items]      
Net sales 37,739 31,160 19,773
AWS      
Disaggregation of Revenue [Line Items]      
Net sales 80,096 62,202 45,370
Other      
Disaggregation of Revenue [Line Items]      
Net sales $ 4,247 $ 2,176 $ 1,680
v3.22.4
Segment Information - Net Sales Attributed to Countries Representing Portion of Consolidated Net Sales (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting, Revenue Reconciling Item      
Net sales $ 513,983 $ 469,822 $ 386,064
United States      
Segment Reporting, Revenue Reconciling Item      
Net sales 356,113 314,006 263,520
Germany      
Segment Reporting, Revenue Reconciling Item      
Net sales 33,598 37,326 29,565
United Kingdom      
Segment Reporting, Revenue Reconciling Item      
Net sales 30,074 31,914 26,483
Japan      
Segment Reporting, Revenue Reconciling Item      
Net sales 24,396 23,071 20,461
Rest of world      
Segment Reporting, Revenue Reconciling Item      
Net sales $ 69,802 $ 63,505 $ 46,035
v3.22.4
Segment Information - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets $ 462,675 $ 420,549 $ 321,195
Operating Segments | North America      
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets 185,268 161,255 108,405
Operating Segments | International      
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets 64,666 57,983 42,212
Operating Segments | AWS      
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets 88,491 63,835 47,574
Corporate      
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets $ 124,250 $ 137,476 $ 123,004
v3.22.4
Segment Information - Reconciliation of Property and Equipment from Segments to Consolidated (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Property and equipment, net $ 186,715 $ 160,281 $ 113,114
Operating Segments | North America      
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Property and equipment, net 90,076 83,640 54,912
Operating Segments | International      
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Property and equipment, net 23,347 21,718 15,375
Operating Segments | AWS      
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Property and equipment, net 60,324 43,245 32,151
Corporate      
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Property and equipment, net $ 12,968 $ 11,678 $ 10,676
v3.22.4
Segment Information - Reconciliation of Property and Equipment Additions from Segments to Consolidated (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting Information [Line Items]      
Property and equipment additions $ 60,836 $ 72,325 $ 57,976
Operating Segments | North America      
Segment Reporting Information [Line Items]      
Property and equipment additions 23,682 37,397 29,889
Operating Segments | International      
Segment Reporting Information [Line Items]      
Property and equipment additions 6,711 10,259 8,072
Operating Segments | AWS      
Segment Reporting Information [Line Items]      
Property and equipment additions 27,755 22,047 16,530
Operating Segments | AWS | Assets held under finance leases      
Segment Reporting Information [Line Items]      
Property and equipment additions 253 3,500 7,700
Operating Segments | AWS | Assets under financing obligations      
Segment Reporting Information [Line Items]      
Property and equipment additions 20 51 130
Operating Segments | North America and International | Assets held under finance leases      
Segment Reporting Information [Line Items]      
Property and equipment additions 422 3,600 5,600
Operating Segments | North America and International | Assets under financing obligations      
Segment Reporting Information [Line Items]      
Property and equipment additions 3,200 5,600 2,700
Corporate      
Segment Reporting Information [Line Items]      
Property and equipment additions $ 2,688 $ 2,622 $ 3,485
v3.22.4
Segment Information - Depreciation and Amortization Expense, by Segment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting Information [Line Items]      
Depreciation and amortization expense $ 24,924 $ 22,909 $ 16,239
North America      
Segment Reporting Information [Line Items]      
Depreciation and amortization expense 11,565 9,234 6,421
International      
Segment Reporting Information [Line Items]      
Depreciation and amortization expense 3,483 3,022 2,215
AWS      
Segment Reporting Information [Line Items]      
Depreciation and amortization expense $ 9,876 $ 10,653 $ 7,603