Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Oct. 16, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	000-22513
Entity Registrant Name	AMAZON.COM, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	91-1646860
Entity Address, Address Line One	410 Terry Avenue North
Entity Address, City or Town	Seattle,
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98109-5210
City Area Code	206
Local Phone Number	266-1000
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	AMZN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		495,797,220
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001018724

Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Cash Flows [Abstract]
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	$ 22,965	$ 20,536	$ 32,173	$ 21,856	$ 21,032	$ 13,960
OPERATING ACTIVITIES:
Net income	2,134	2,883	8,320	7,046	11,347	8,902
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other	5,563	3,778	15,619	11,079	19,881	14,577
Stock-based compensation	1,779	1,350	5,024	4,001	6,441	5,180
Other operating expense (income), net	47	62	114	202	186	258
Other expense (income), net	388	96	246	22	443	17
Deferred income taxes	92	266	612	268	784	(40)
Changes in operating assets and liabilities:
Inventories	(381)	(1,094)	(1,762)	36	(3,112)	(2,220)
Accounts receivable, net and other	(1,181)	(2,884)	(3,776)	(3,220)	(5,172)	(5,983)
Accounts payable	226	3,894	(2,490)	(3,618)	4,393	5,285
Accrued expenses and other	(722)	237	(4,277)	(2,193)	(1,612)	(131)
Unearned revenue	(53)	0	1,225	623	1,753	759
Net cash provided by (used in) operating activities	7,892	8,588	18,855	14,246	35,332	26,604
INVESTING ACTIVITIES:
Purchases of property and equipment	(4,697)	(3,352)	(11,549)	(9,693)	(15,282)	(13,312)
Proceeds from property and equipment sales and incentives	1,312	825	2,800	1,490	3,414	2,073
Acquisitions, net of cash acquired, and other	(398)	(976)	(1,684)	(1,855)	(2,015)	(1,936)
Sales and maturities of marketable securities	7,251	1,964	15,056	6,301	16,994	9,787
Purchases of marketable securities	(8,542)	(4,033)	(25,368)	(5,040)	(27,428)	(7,390)
Net cash provided by (used in) investing activities	(5,074)	(5,572)	(20,745)	(8,797)	(24,317)	(10,778)
FINANCING ACTIVITIES:
Proceeds from long-term debt and other	702	143	1,175	363	1,581	472
Repayments of long-term debt and other	(355)	(183)	(819)	(533)	(953)	(1,675)
Principal repayments of finance leases	(2,307)	(2,247)	(6,848)	(5,544)	(8,754)	(7,016)
Principal repayments of financing obligations	0	(82)	(3)	(211)	(129)	(277)
Net cash provided by (used in) financing activities	(1,960)	(2,369)	(6,495)	(5,925)	(8,255)	(8,496)
Foreign currency effect on cash, cash equivalents, and restricted cash	(269)	(151)	(234)	(348)	(238)	(258)
Net increase (decrease) in cash, cash equivalents, and restricted cash	589	496	(8,619)	(824)	2,522	7,072
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	23,554	21,032	23,554	21,032	23,554	21,032
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on long-term debt	287	283	720	733	842	907
Cash paid for operating leases	872	0	2,420	0	2,420	0
Cash paid for interest on finance leases	167	118	481	277	585	335
Cash paid for interest on financing obligations	14	47	20	142	72	168
Cash paid for income taxes, net of refunds	241	200	692	1,013	863	1,106
Assets acquired under operating leases	2,299	0	5,393	0	5,393	0
Property and equipment acquired under finance leases	3,606	2,329	9,541	6,934	13,222	9,704
Property and equipment acquired under build-to-suit arrangements	$ 390	$ 962	$ 1,109	$ 2,498	$ 2,252	$ 3,340

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Total net sales	$ 69,981	$ 56,576	$ 193,086	$ 160,504
Operating expenses:
Cost of sales	41,302	33,003	111,559	94,370
Fulfillment	10,167	8,275	28,040	23,999
Marketing	4,752	3,303	12,707	8,902
Technology and content	9,200	7,162	26,191	21,168
General and administrative	1,348	1,041	3,791	3,219
Other operating expense (income), net	55	68	136	211
Total operating expenses	66,824	52,852	182,424	151,869
Operating income	3,157	3,724	10,662	8,635
Interest income	224	117	621	290
Interest expense	(396)	(358)	(1,145)	(1,030)
Other income (expense), net	(353)	(93)	(215)	16
Total non-operating income (expense)	(525)	(334)	(739)	(724)
Income before income taxes	2,632	3,390	9,923	7,911
Provision for income taxes	(494)	(508)	(1,588)	(870)
Equity-method investment activity, net of tax	(4)	1	(15)	5
Net income	$ 2,134	$ 2,883	$ 8,320	$ 7,046
Basic earnings per share	$ 4.31	$ 5.91	$ 16.87	$ 14.49
Diluted earnings per share	$ 4.23	$ 5.75	$ 16.53	$ 14.10
Weighted-average shares used in computation of earnings per share:
Basic (in shares)	495	488	493	486
Diluted (in shares)	504	501	503	500
Product [Member]
Total net sales	$ 39,726	$ 33,746	$ 109,866	$ 97,215
Service [Member]
Total net sales	$ 30,255	$ 22,830	$ 83,220	$ 63,289

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 2,134	$ 2,883	$ 8,320	$ 7,046
Net change in foreign currency translation adjustments:
Foreign currency translation adjustments, net of tax of $2, $1, $19, and $(6)	(368)	(101)	(369)	(512)
Reclassification adjustment for foreign currency translation included in “Other operating expense (income), net,” net of tax of $0, $29, $0, and $29	(108)	0	(108)	0
Net foreign currency translation adjustments	(476)	(101)	(477)	(512)
Net change in unrealized gains (losses) on available-for-sale debt securities:
Unrealized gains (losses), net of tax of $0, $(2), $8, and $(13)	9	0	85	(43)
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $0, $0, and $0	(2)	1	(2)	5
Net unrealized gains (losses) on available-for-sale debt securities	7	1	83	(38)
Total other comprehensive income (loss)	(469)	(100)	(394)	(550)
Comprehensive income	$ 1,665	$ 2,783	$ 7,926	$ 6,496

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax	$ 1	$ 2	$ (6)	$ 19
Reclassification adjustment for foreign currency translation included in Other operating expense, net, net of tax	29	0	29	0
Unrealized gains (losses), tax	(2)	0	(13)	8
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” tax	$ 0	$ 0	$ 0	$ 0

Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 23,255	$ 31,750
Marketable securities	20,146	9,500
Inventories	18,766	17,174
Accounts receivable, net and other	16,887	16,677
Total current assets	79,054	75,101
Property and equipment, net	67,662	61,797
Operating leases	23,114	0
Goodwill	14,734	14,548
Other assets	14,535	11,202
Total assets	199,099	162,648
Current liabilities:
Accounts payable	35,794	38,192
Accrued expenses and other	28,961	23,663
Unearned revenue	7,381	6,536
Total current liabilities	72,136	68,391
Long-term lease liabilities	37,058	9,650
Long-term debt	22,472	23,495
Other long-term liabilities	10,925	17,563
Commitments and contingencies (Note 4)
Stockholders’ equity:
Preferred stock, $0.01 par value: Authorized shares - 500 Issued and outstanding shares - none	0	0
Common stock, $0.01 par value: Authorized shares - 5,000 Issued shares - 514 and 518 Outstanding shares - 491 and 494	5	5
Treasury stock, at cost	(1,837)	(1,837)
Additional paid-in capital	31,817	26,791
Accumulated other comprehensive loss	(1,429)	(1,035)
Retained earnings	27,952	19,625
Total stockholders’ equity	56,508	43,549
Total liabilities and stockholders’ equity	$ 199,099	$ 162,648

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares	500,000,000	500,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, authorized shares	5,000,000,000	5,000,000,000
Common stock, issued shares	519,000,000	514,000,000
Common stock, outstanding shares	495,000,000	491,000,000

Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Accounting Policies

ACCOUNTING POLICIES

Unaudited Interim Financial Information

We have prepared the accompanying consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our consolidated cash flows, operating results, and balance sheets for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2019 due to seasonal and other factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted in accordance with the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes in Item 8 of Part II, “Financial Statements and Supplementary Data,” of our 2018 Annual Report on Form 10-K.

Prior Period Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation, including the reclassification of long-term capital lease obligations that existed at December 31, 2018 from “Other long-term liabilities” to “Long-term lease liabilities” within the consolidated balance sheets, as a result of the adoption of new accounting guidance for leases. See “Accounting Pronouncements Recently Adopted.”

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, depreciable lives of equipment, commitments and contingencies, valuation of acquired intangibles and goodwill, stock-based compensation forfeiture rates, vendor funding, and inventory valuation. Actual results could differ materially from those estimates.

Earnings per Share

Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when we have a net loss, stock awards are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect.

The following table shows the calculation of diluted shares (in millions):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2018	2019	2018	2019
Shares used in computation of basic earnings per share	488	495	486	493
Total dilutive effect of outstanding stock awards	13	9	14	10
Shares used in computation of diluted earnings per share	501	504	500	503

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, 2018 and September 30, 2019, customer receivables, net, were $9.4 billion and $10.6 billion, vendor receivables, net, were $3.2 billion and $2.5 billion, and seller receivables, net, were $710 million and $790 million. Seller receivables are amounts due from sellers related to our seller lending program, which provides funding to sellers primarily to procure inventory.

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. Lease assets are tested for impairment in the same manner as long-lived assets used in operations. 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 these options 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 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.

Financing Obligations

We record assets and liabilities for estimated construction costs under build-to-suit lease arrangements when we have control over the building during the construction period. If we continue to control the building after the construction period, the arrangement is classified as a financing obligation instead of a lease. The building is depreciated over the shorter of its useful life or the term of the obligation.

If we do not control the building after the construction period ends, the assets and liabilities for construction costs are derecognized, and we classify the lease as either operating or finance.

Digital Video and Music Content

We obtain video content, inclusive of episodic television and movies, and music content for customers through licensing agreements that have a wide range of licensing provisions including both fixed and variable payment schedules. When the license fee for a specific video or music title is determinable or reasonably estimable and the content is available to us, we recognize an asset and a corresponding liability for the amounts owed. We reduce the liability as payments are made and we amortize the asset to “Cost of sales” on an accelerated basis, based on estimated usage or viewing patterns, or on a straight-line basis. If the licensing fee is not determinable or reasonably estimable, no asset or liability is recorded and licensing costs are expensed as incurred. We also develop original video content for which the production costs are capitalized and amortized to “Cost of sales” predominantly on an accelerated basis that follows the viewing patterns associated with the content. The weighted average remaining life of our capitalized video content is 2.6 years.

Our produced and licensed video content is primarily monetized together as a unit, referred to as a film group, in each major geography where we offer Amazon Prime memberships. These film groups are evaluated for impairment whenever an event occurs or circumstances change indicating the fair value is less than the carrying value. The total capitalized costs of video, which is primarily released content, and music as of December 31, 2018 and September 30, 2019 were $3.8 billion and $5.0 billion. Total video and music expense was $1.7 billion and $1.9 billion in Q3 2018 and Q3 2019, and $4.9 billion and $5.5 billion for the nine months ended September 30, 2018 and 2019. 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.

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, 2018 was $7.9 billion, of which $5.7 billion was recognized as revenue during the nine months ended September 30, 2019. Included in “Other long-term liabilities” on our consolidated balance sheets was $1.4 billion and $1.6 billion of unearned revenue as of December 31, 2018 and September 30, 2019.

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 $27.4 billion as of September 30, 2019. The weighted average remaining life of our long-term contracts is 3.3 years. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term.

Accounting Pronouncements Recently Adopted

In February 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) amending the accounting for leases, primarily requiring the recognition of lease assets and liabilities for operating leases with terms of more than twelve months on our consolidated balance sheets. Under the new guidance, leases previously described as capital lease obligations and finance lease obligations are now referred to as finance leases and financing obligations, respectively. We adopted this ASU on January 1, 2019 by recording an immaterial cumulative adjustment to retained earnings rather than retrospectively adjusting prior periods. Prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting policies resulting in a balance sheet presentation that is not comparable to the prior period in the first year of adoption. The adoption of this ASU resulted in the recognition of operating lease assets and liabilities of approximately $21 billion, which included the reclassification of finance lease obligations to operating leases of $1.2 billion. As of December 31, 2018, amounts related to finance lease obligations and construction liabilities totaled $9.6 billion, of which $1.5 billion was derecognized for buildings that we do not control during the construction period and $5.4 billion and $1.5 billion were reclassified to finance leases and operating leases, respectively.

In March 2019, the FASB issued an ASU amending the accounting for film costs, inclusive of episodic television and movie costs. The new guidance aligns the accounting for production costs of episodic television with that of movies by requiring production costs to be capitalized. Previously, we only capitalized a portion of the production costs related to our produced episodic television content. We adopted this ASU as of January 1, 2019 and began capitalizing substantially all of our production costs. Adoption of this ASU resulted in approximately $631 million of incremental capitalized film costs classified in “Other Assets” for the nine months ended September 30, 2019.

Financial Instruments

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Financial Instruments

FINANCIAL INSTRUMENTS

Cash, Cash Equivalents, Restricted Cash, and Marketable Securities

As of December 31, 2018 and September 30, 2019, our cash, cash equivalents, restricted cash, and marketable securities primarily consisted of cash, AAA-rated money market funds, U.S. and foreign government and agency securities, and other investment grade securities. Cash equivalents and marketable securities are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:

Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3—Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

We measure the fair value of money market funds and certain marketable equity securities based on quoted prices in active markets for identical assets or liabilities. Other marketable securities were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. We did not hold significant amounts of cash, cash equivalents, restricted cash, or marketable securities categorized as Level 3 assets as of December 31, 2018 and September 30, 2019.

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, 2018			September 30, 2019
	Total Estimated Fair Value			Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Total Estimated Fair Value
Cash	$	10,406		$	8,900	$	—	$	—		$	8,900
Level 1 securities:
Money market funds	12,515			9,869		—		—			9,869
Equity securities (1)	170										225
Level 2 securities:
Foreign government and agency securities	815			4,170		—		—			4,170
U.S. government and agency securities	11,667			6,875		13		(4		)	6,884
Corporate debt securities	4,990			11,132		37		(1		)	11,168
Asset-backed securities	892			2,180		8		(1		)	2,187
Other fixed income securities	188			293		2		—			295
Equity securities (1)	33										5
	$	41,676		$	43,419	$	60	$	(6	)	$	43,703
Less: Restricted cash, cash equivalents, and marketable securities (2)	(426		)								(302		)
Total cash, cash equivalents, and marketable securities	$	41,250									$	43,401

___________________


(1)	The related unrealized gain (loss) recorded in “Other income (expense), net” was $(55) million in Q3 2019 and $27 million for the nine months ended September 30, 2019.

(2)

We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable securities as collateral for real estate leases, amounts due to third-party sellers in certain jurisdictions, debt, and standby and trade letters of credit. We classify cash, cash equivalents, and marketable securities with use restrictions of less than twelve months as “Accounts receivable, net and other” and of twelve months or longer as non-current “Other assets” on our consolidated balance sheets. See “Note 4 — Commitments and Contingencies.”

The following table summarizes the remaining contractual maturities of our cash equivalents and marketable fixed income securities as of September 30, 2019 (in millions):



	Amortized Cost		Estimated Fair Value
Due within one year	$	24,194	$	24,202
Due after one year through five years	9,104		9,146
Due after five years through ten years	309		310
Due after ten years	912		915
Total	$	34,519	$	34,573

Actual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions.

Equity Warrants and Non-Marketable Equity Securities

We hold equity warrants giving us the right to acquire stock of other companies. As of December 31, 2018 and September 30, 2019, these warrants had a fair value of $440 million and $526 million, and are recorded within “Other assets” on our consolidated balance sheets. The related gain (loss) recorded in “Other income (expense), net” was $(62) million and $(151) million in Q3 2018 and Q3 2019, and $25 million and $(79) million for the nine months ended September 30, 2018 and 2019. These assets are primarily classified as Level 2 assets.

As of December 31, 2018 and September 30, 2019, equity securities not accounted for under the equity-method and without readily determinable fair values, had a carrying value of $282 million and $894 million, and are recorded within “Other assets” on our consolidated balance sheets.

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, 2018		September 30, 2019
Cash and cash equivalents	$	31,750	$	23,255
Restricted cash included in accounts receivable, net and other	418		257
Restricted cash included in other assets	5		42
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows	$	32,173	$	23,554

Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

LEASES

Gross assets acquired under finance leases, inclusive of those where title transfers at the end of the lease, are recorded in “Property and equipment, net” and were $36.1 billion and $53.7 billion as of December 31, 2018 and September 30, 2019. Accumulated amortization associated with finance leases was $19.8 billion and $27.8 billion as of December 31, 2018 and September 30, 2019.

Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions):



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019

Operating lease cost (1)	$	934	$	2,644
Finance lease cost:
Amortization of lease assets	2,609		7,319
Interest on lease liabilities	164		479
Finance lease cost	2,773		7,798
Variable lease cost	244		775
Total lease cost	$	3,951	$	11,217

__________________


(1)	Rental expense under operating lease agreements was $859 million for Q3 2018 and $2.5 billion for the nine months ended September 30, 2018.

Other information about lease amounts recognized in our consolidated financial statements is summarized as follows:



	September 30, 2019

Weighted-average remaining lease term – operating leases	11.7 years
Weighted-average remaining lease term – finance leases	5.7 years
Weighted-average discount rate – operating leases	3.2	%
Weighted-average discount rate – finance leases	2.8	%

As of September 30, 2019, our lease liabilities were as follows (in millions):



	Operating Leases			Finance Leases			Total

Gross lease liabilities	$	30,550		$	27,310		$	57,860
Less: imputed interest	(6,646		)	(1,936		)	(8,582		)
Present value of lease liabilities	23,904			25,374			49,278
Less: current portion of lease liabilities	(2,842		)	(9,378		)	(12,220		)
Total long-term lease liabilities	$	21,062		$	15,996		$	37,058

Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Commitments

We have entered into non-cancellable operating and finance leases and financing obligations for equipment and office, fulfillment, sortation, delivery, data center, physical store, and renewable energy facilities.

The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally cancellable, as of September 30, 2019 (in millions):



	Three Months Ended December 31,		Year Ended December 31,
	2019		2020		2021		2022		2023		Thereafter		Total
Debt principal and interest	$	1,556	$	2,345	$	1,928	$	2,144	$	1,848	$	30,047	$	39,868
Operating lease liabilities	795		3,594		3,337		2,977		2,657		17,190		30,550
Finance lease liabilities, including interest	2,124		9,364		6,355		2,754		1,158		5,555		27,310
Financing obligations, including interest	21		100		102		103		105		1,796		2,227
Unconditional purchase obligations (1)	270		3,864		3,388		3,126		2,991		5,219		18,858
Other commitments (2) (3)	1,377		2,589		1,554		1,434		1,011		10,521		18,486
Total commitments	$	6,143	$	21,856	$	16,664	$	12,538	$	9,770	$	70,328	$	137,299

___________________

(1)

Includes unconditional purchase obligations related to certain products offered in our Whole Foods Market stores and long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets. For those digital media content agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified.


(2)	Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements and lease arrangements prior to the lease commencement date and digital media content liabilities associated with long-term digital media content assets with initial terms greater than one year.


(3)	Excludes approximately $3.8 billion of accrued tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any.

Pledged Assets

As of December 31, 2018 and September 30, 2019, we have pledged or otherwise restricted $575 million and $686 million of our cash, cash equivalents, and marketable securities, and certain property and equipment as collateral for real estate leases, amounts due to third-party sellers in certain jurisdictions, debt, and standby and trade letters of credit.

Other Contingencies

In 2016, we determined that we processed and delivered orders of consumer products for certain individuals and entities located outside Iran covered by the Iran Threat Reduction and Syria Human Rights Act or other United States sanctions and export control laws. The consumer products included books, music, other media, apparel, home and kitchen, health and beauty, jewelry, office, consumer electronics, software, lawn and patio, grocery, and automotive products. Our review is ongoing and we have voluntarily reported these orders to the United States Treasury Department’s Office of Foreign Assets Control and the United States Department of Commerce’s Bureau of Industry and Security. We intend to cooperate fully with OFAC and BIS with respect to their review, which may result in the imposition of penalties. For additional information, see Item 5 of Part II, “Other Information — Disclosure Pursuant to Section 13(r) of the Exchange Act.”

We are subject to claims related to various indirect taxes (such as sales, value added, consumption, service, and similar taxes), including in jurisdictions in which we already collect and remit such taxes. If the relevant taxing authorities were successfully to pursue these claims, we could be subject to significant additional tax liabilities. For example, in June 2017, the State of South Carolina issued an assessment for uncollected sales and use taxes for the period from January 2016 to March 2016, including interest and penalties. South Carolina is alleging that we should have collected sales and use taxes on transactions by our third-party sellers. In September 2019, the South Carolina Administrative Law Court ruled in favor of the Department of Revenue and we have appealed the decision to the state Court of Appeals. We believe the assessment is without merit and intend to defend ourselves vigorously in this matter. If other tax authorities were successfully to seek additional adjustments of a similar nature, we could be subject to significant additional tax liabilities.

Legal Proceedings

The Company is involved from time to time in claims, proceedings, and litigation, including the matters described in Item 8 of Part II, “Financial Statements and Supplementary Data — Note 7 — Commitments and Contingencies — Legal Proceedings” of our 2018 Annual Report on Form 10-K and in Item 1 of Part I, “Financial Statements — Note 4 — Commitments and Contingencies — Legal Proceedings” of our Quarterly Reports on Form 10-Q for the periods ended March 31, 2019 and June 30, 2019.

The outcomes of our legal proceedings and other contingencies are inherently unpredictable, subject to significant uncertainties, and could be material to our operating results and cash flows for a particular period. In addition, for 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.

See also “Note 7 — Income Taxes.”

Long-Term Debt

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Long-Term Debt

DEBT

As of September 30, 2019, we had $24.3 billion of unsecured senior notes outstanding (the “Notes”). As of December 31, 2018 and September 30, 2019, the net unamortized discount and debt issuance costs on the Notes was $101 million. We also have other long-term debt with a carrying amount, including the current portion and borrowings under our credit facility, of $715 million and $1.2 billion as of December 31, 2018 and September 30, 2019. The face value of our total long-term debt obligations is as follows (in millions):



	December 31, 2018			September 30, 2019
2.600% Notes due on December 5, 2019 (2)	1,000			1,000
1.900% Notes due on August 21, 2020 (3)	1,000			1,000
3.300% Notes due on December 5, 2021 (2)	1,000			1,000
2.500% Notes due on November 29, 2022 (1)	1,250			1,250
2.400% Notes due on February 22, 2023 (3)	1,000			1,000
2.800% Notes due on August 22, 2024 (3)	2,000			2,000
3.800% Notes due on December 5, 2024 (2)	1,250			1,250
5.200% Notes due on December 3, 2025 (4)	1,000			1,000
3.150% Notes due on August 22, 2027 (3)	3,500			3,500
4.800% Notes due on December 5, 2034 (2)	1,250			1,250
3.875% Notes due on August 22, 2037 (3)	2,750			2,750
4.950% Notes due on December 5, 2044 (2)	1,500			1,500
4.050% Notes due on August 22, 2047 (3)	3,500			3,500
4.250% Notes due on August 22, 2057 (3)	2,250			2,250
Credit Facility	594			603
Other long-term debt	121			558
Total debt	24,965			25,411
Less current portion of long-term debt	(1,371		)	(2,841		)
Face value of long-term debt	$	23,594		$	22,570

_____________________________


(1)	Issued in November 2012, effective interest rate of the 2022 Notes was 2.66%.


(2)	Issued in December 2014, effective interest rates of the 2019, 2021, 2024, 2034, and 2044 Notes were 2.73%, 3.43%, 3.90%, 4.92%, and 5.11%.


(3)	Issued in August 2017, effective interest rates of the 2020, 2023, 2024, 2027, 2037, 2047, and 2057 Notes were 2.16%, 2.56%, 2.95%, 3.25%, 3.94%, 4.13%, and 4.33%.


(4)	Consists of $872 million of 2025 Notes issued in December 2017 in exchange for notes assumed in connection with the acquisition of Whole Foods Market and $128 million of 2025 Notes issued by Whole Foods Market that did not participate in our December 2017 exchange offer. The effective interest rate of the 2025 Notes was 3.02%.

Interest on the Notes issued in 2012 is payable semi-annually in arrears in May and November. Interest on the Notes issued in 2014 is payable semi-annually in arrears in June and December. Interest on the Notes issued in 2017 is payable semi-

annually in arrears in February and August. Interest on the 2025 Notes is payable semi-annually in arrears in June and December. We may redeem the Notes at any time in whole, or from time to time, in part at specified redemption prices. We are not subject to any financial covenants under the Notes. The proceeds from the November 2012 and the December 2014 Notes were used for general corporate purposes. The proceeds from the August 2017 Notes were used to fund the consideration for the acquisition of Whole Foods Market, to repay notes due in 2017, and for general corporate purposes. The estimated fair value of the Notes was approximately $24.3 billion and $27.4 billion as of December 31, 2018 and September 30, 2019, which is based on Level 2 inputs.

In October 2016, we entered into a $500 million secured revolving credit facility with a lender that is secured by certain seller receivables, which we subsequently increased to $650 million and may from time to time increase in the future subject to lender approval (the “Credit Facility”). The Credit Facility is available for a term of three years, bears interest at the London interbank offered rate (“LIBOR”) plus 1.65%, and has a commitment fee of 0.50% on the undrawn portion. There were $594 million and $603 million of borrowings outstanding under the Credit Facility as of December 31, 2018 and September 30, 2019, with weighted-average interest rates of 3.2% and 3.4% as of December 31, 2018 and September 30, 2019. As of December 31, 2018 and September 30, 2019, we have pledged $686 million and $698 million of our cash and seller receivables as collateral for debt related to our Credit Facility. The estimated fair value of the Credit Facility, which is based on Level 2 inputs, approximated its carrying value as of December 31, 2018 and September 30, 2019.

Other long-term debt, including the current portion, had a weighted-average interest rate of 6.0% and 4.7% as of December 31, 2018 and September 30, 2019. We used the net proceeds from the issuance of this debt primarily to fund certain business operations. The estimated fair value of other long-term debt, which is based on Level 2 inputs, approximated its carrying value as of December 31, 2018 and September 30, 2019.

In April 2018, we established a commercial paper program (the “Commercial Paper Program”) under which we may from time to time issue unsecured commercial paper up to a total of $7.0 billion at any time, with individual maturities that may vary but will not exceed 397 days from the date of issue. There were no borrowings outstanding under the Commercial Paper Program as of December 31, 2018 and September 30, 2019.

In April 2018, in connection with our Commercial Paper Program, we amended and restated our unsecured revolving credit facility (the “Credit Agreement”) with a syndicate of lenders to increase our borrowing capacity thereunder to $7.0 billion. As amended and restated, the Credit Agreement has a term of three years, but it may be extended for up to three additional one-year terms if approved by the lenders. The interest rate applicable to outstanding balances under the amended and restated Credit Agreement is LIBOR plus 0.50%, with a commitment fee of 0.04% on the undrawn portion of the credit facility. There were no borrowings outstanding under the Credit Agreement as of December 31, 2018 and September 30, 2019.

Stockholders' Equity

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

Stock Repurchase Activity

In February 2016, the Board of Directors authorized a program to repurchase up to $5.0 billion of our common stock, with no fixed expiration. There were no repurchases of common stock during the nine months ended September 30, 2018 or 2019.

Stock Award Activity

Common shares outstanding plus shares underlying outstanding stock awards totaled 507 million and 511 million as of December 31, 2018 and September 30, 2019. These totals include all vested and unvested stock awards outstanding, including those awards we estimate will be forfeited. Stock-based compensation expense is as follows (in millions):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2019		2018		2019
Cost of sales	$	19	$	39	$	52	$	106
Fulfillment	269		301		834		895
Marketing	201		298		552		813
Technology and content	719		966		2,137		2,719
General and administrative	142		175		426		491
Total stock-based compensation expense	$	1,350	$	1,779	$	4,001	$	5,024

The following table summarizes our restricted stock unit activity for the nine months ended September 30, 2019 (in millions):



	Number of Units		Weighted-Average Grant-Date Fair Value
Outstanding as of December 31, 2018	15.9		$	1,024
Units granted	5.8		1,811
Units vested	(4.6	)	793
Units forfeited	(1.3	)	1,179
Outstanding as of September 30, 2019	15.8		1,367

Scheduled vesting for outstanding restricted stock units as of September 30, 2019, is as follows (in millions):



	Three Months Ended December 31,	Year Ended December 31,
	2019	2020	2021	2022	2023	Thereafter	Total
Scheduled vesting—restricted stock units	2.0	6.0	5.0	1.8	0.8	0.2	15.8

As of September 30, 2019, there was $9.4 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements. This compensation is recognized on an accelerated basis with approximately half of the compensation expected to be expensed in the next twelve months, and has a weighted-average recognition period of 1.1 years. The estimated forfeiture rate as of December 31, 2018 and September 30, 2019 was 27%. Changes in our estimates and assumptions relating to forfeitures may cause us to realize material changes in stock-based compensation expense in the future.

Changes in Stockholders’ Equity

The following table shows the changes in stockholders’ equity (in millions):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2019			2018			2019
Total beginning stockholders’ equity	$	34,995		$	53,061		$	27,709		$	43,549

Beginning and ending common stock	5			5			5			5

Beginning and ending treasury stock	(1,837		)	(1,837		)	(1,837		)	(1,837		)

Beginning additional paid-in capital	24,028			30,035			21,389			26,791
Stock-based compensation and issuance of employee benefit plan stock	1,347			1,782			3,986			5,026
Ending additional paid-in capital	25,375			31,817			25,375			31,817

Beginning accumulated other comprehensive loss	(934		)	(960		)	(484		)	(1,035		)
Other comprehensive income (loss)	(100		)	(469		)	(550		)	(394		)
Ending accumulated other comprehensive loss	(1,034		)	(1,429		)	(1,034		)	(1,429		)

Beginning retained earnings	13,733			25,818			8,636			19,625
Cumulative effect of changes in accounting principles (1)	—			—			934			7
Net income	2,883			2,134			7,046			8,320
Ending retained earnings	16,616			27,952			16,616			27,952

Total ending stockholders’ equity	$	39,125		$	56,508		$	39,125		$	56,508

___________________

(1)

We recorded cumulative effect adjustments related to the new revenue and income tax standards in Q1 2018 and the new lease standard in Q1 2019. See Item 1 of Part I, “Financial Statements — Note 1 — Accounting Policies — Accounting Pronouncements Recently Adopted” for additional information.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES Our tax provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, is subject to significant variation due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss and the mix of jurisdictions to which they relate, intercompany transactions, the applicability of special tax regimes, changes in how we do business, acquisitions, investments, audit-related developments, changes in our stock price, changes in our deferred tax assets and liabilities and their valuation, foreign currency gains (losses), changes in statutes, regulations, case law, and administrative practices, principles, and interpretations related to tax, including changes to the global tax framework, competition, and other laws and accounting rules in various jurisdictions, and relative changes of expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income or loss. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. For 2019, we estimate that our effective tax rate will be favorably affected by the impact of excess tax benefits from stock-based compensation and the U.S. federal research and development credit and adversely affected by state income taxes and losses incurred in certain foreign jurisdictions for which we may not realize a tax benefit. Losses for which we may not realize a related tax benefit, primarily due to losses of foreign subsidiaries, reduce our pre-tax income without a corresponding reduction in our tax expense, and therefore increase our effective tax rate. We record valuation allowances against the deferred tax assets associated with losses for which we may not realize a related tax benefit. Our income tax provisions for the nine months ended September 30, 2018 and 2019 were $870 million and $1.6 billion, which included $1.3 billion and $1.0 billion of net discrete tax benefits primarily attributable to excess tax benefits from stock-based compensation. Cash paid for income taxes, net of refunds was $200 million and $241 million in Q3 2018 and Q3 2019, and $1.0 billion and $692 million for the nine months ended September 30, 2018 and 2019. As of December 31, 2018 and September 30, 2019, tax contingencies were approximately $3.4 billion and $3.8 billion. We expect the total amount of tax contingencies will grow in 2019. In addition, changes in state, federal, and foreign tax laws may increase our tax contingencies. The timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ from the amounts accrued. It is reasonably possible that within the next twelve months we will receive additional assessments by various tax authorities or possibly reach resolution of income tax examinations in one or more jurisdictions. These assessments or settlements could result in changes to our contingencies related to positions on tax filings on prior years’ tax filings. We are under examination, or may be subject to examination, by the Internal Revenue Service (“IRS”) for the calendar year 2005 and thereafter. These examinations may lead to ordinary course adjustments or proposed adjustments to our taxes or our net operating losses with respect to years under examination as well as subsequent periods. As previously disclosed, we have received Notices of Proposed Adjustment (“NOPAs”) from the IRS for transactions undertaken in the 2005 and 2006 calendar years relating to transfer pricing with our foreign subsidiaries. The IRS is seeking to increase our U.S. taxable income by an amount that would result in additional federal tax of approximately $1.5 billion, subject to interest. On March 23, 2017, the U.S. Tax Court issued its decision regarding the issues raised in the IRS NOPAs. The Tax Court rejected the approach from the IRS NOPAs in determining transfer pricing adjustments in 2005 and 2006 for the transactions undertaken with our foreign subsidiaries and adopted, with adjustments, our suggested approach. In August 2019, the U.S. Court of Appeals for the Ninth Circuit affirmed the Tax Court’s decision. In October 2014, the European Commission opened a formal investigation to examine whether decisions by the tax authorities in Luxembourg with regard to the corporate income tax paid by certain of our subsidiaries comply with European Union rules on state aid. On October 4, 2017, the European Commission announced its decision that determinations by the tax authorities in Luxembourg did not comply with European Union rules on state aid. Based on that decision the European Commission announced an estimated recovery amount of approximately €250 million, plus interest, for the period May 2006 through June 2014, and ordered Luxembourg tax authorities to calculate the actual amount of additional taxes subject to recovery. Luxembourg computed an initial recovery amount, consistent with the European Commission’s decision, that we deposited into escrow in March 2018, subject to adjustment pending conclusion of all appeals. In December 2017, Luxembourg appealed the European Commission’s decision. In May 2018, we appealed. We believe the European Commission’s decision to be without merit and will continue to defend ourselves vigorously in this matter. We are also subject to taxation in various states and other foreign jurisdictions including China, Germany, India, Japan, Luxembourg, and the United Kingdom. We are under, or may be subject to, audit or examination and additional assessments by the relevant authorities in respect of these particular jurisdictions primarily for 2008 and thereafter.

Segment Information

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

We have organized our operations into three segments: North America, International, and AWS. We allocate to segment results the operating expenses “Fulfillment,” “Marketing,” “Technology and content,” and “General and administrative” based on usage, which is generally reflected in the segment in which the costs are incurred. The majority of technology infrastructure costs are allocated to the AWS segment based on usage. The majority of the remaining non-infrastructure technology costs are incurred in the U.S. and are allocated to our North America segment. There are no internal revenue transactions between our reportable segments. These segments reflect the way our chief operating decision maker evaluates the Company’s business performance and manages its operations.

North America

The North America segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America-focused online and physical stores. This segment includes export sales from these online stores.

International

The International segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused online stores. This segment includes export sales from these internationally-focused online stores (including export sales from these online stores to customers in the U.S., Mexico, and Canada), but excludes export sales from our North America-focused online stores.

AWS

The AWS segment consists of amounts earned from global sales of compute, storage, database, and other service offerings for start-ups, enterprises, government agencies, and academic institutions.

Information on reportable segments and reconciliation to consolidated net income is as follows (in millions):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2019			2018			2019
North America
Net sales	$	34,348		$	42,638		$	97,242		$	117,104
Operating expenses	32,316			41,356			92,227			111,971
Operating income	$	2,032		$	1,282		$	5,015		$	5,133

International
Net sales	$	15,549		$	18,348		$	45,037		$	50,910
Operating expenses	15,934			18,734			46,536			51,986
Operating income (loss)	$	(385	)	$	(386	)	$	(1,499	)	$	(1,076	)

AWS
Net sales	$	6,679		$	8,995		$	18,225		$	25,072
Operating expenses	4,602			6,734			13,106			18,467
Operating income	$	2,077		$	2,261		$	5,119		$	6,605

Consolidated
Net sales	$	56,576		$	69,981		$	160,504		$	193,086
Operating expenses	52,852			66,824			151,869			182,424
Operating income	3,724			3,157			8,635			10,662
Total non-operating income (expense)	(334		)	(525		)	(724		)	(739		)
Provision for income taxes	(508		)	(494		)	(870		)	(1,588		)
Equity-method investment activity, net of tax	1			(4		)	5			(15		)
Net income	$	2,883		$	2,134		$	7,046		$	8,320

Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2019		2018		2019
Net Sales:
Online stores (1)	$	29,061	$	35,039	$	83,165	$	95,590
Physical stores (2)	4,248		4,192		12,824		12,829
Third-party seller services (3)	10,395		13,212		29,361		36,316
Subscription services (4)	3,698		4,957		10,209		13,975
AWS	6,679		8,995		18,225		25,072
Other (5)	2,495		3,586		6,720		9,304
Consolidated	$	56,576	$	69,981	$	160,504	$	193,086

____________________________

(1)

Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, music, videos, games, and software. These product sales include digital products sold on a transactional basis. Digital product subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.”


(2)	Includes product sales where our customers physically select items in a store. Sales from customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.”


(3)	Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.


(4)	Includes annual and monthly fees associated with Amazon Prime memberships, as well as audiobook, digital video, e-book, digital music, and other non-AWS subscription services.

(5)

Primarily includes sales of advertising services, as well as sales related to our other service offerings.

Accounting Policies (Policies)	9 Months Ended
Accounting Policies (Policies)	Sep. 30, 2019
Accounting Policies [Abstract]
Unaudited Interim Financial Information	Unaudited Interim Financial Information We have prepared the accompanying consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our consolidated cash flows, operating results, and balance sheets for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2019 due to seasonal and other factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted in accordance with the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes in Item 8 of Part II, “Financial Statements and Supplementary Data,” of our 2018 Annual Report on Form 10-K.
Prior Period Reclassifications	Prior Period Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation, including the reclassification of long-term capital lease obligations that existed at December 31, 2018 from “Other long-term liabilities” to “Long-term lease liabilities” within the consolidated balance sheets, as a result of the adoption of new accounting guidance for leases. See “Accounting Pronouncements Recently Adopted.”
Principles of Consolidation	Principles of Consolidation
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, income taxes, depreciable lives of equipment, commitments and contingencies, valuation of acquired intangibles and goodwill, stock-based compensation forfeiture rates, vendor funding, and inventory valuation. Actual results could differ materially from those estimates.
Earnings per Share	Earnings per Share Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when we have a net loss, stock awards are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect.
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, 2018 and September 30, 2019, customer receivables, net, were $9.4 billion and $10.6 billion, vendor receivables, net, were $3.2 billion and $2.5 billion, and seller receivables, net, were $710 million and $790 million. Seller receivables are amounts due from sellers related to our seller lending program, which provides funding to sellers primarily to procure inventory.
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. Lease assets are tested for impairment in the same manner as long-lived assets used in operations. 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 these options 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 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.
Financing Obligations	Financing Obligations We record assets and liabilities for estimated construction costs under build-to-suit lease arrangements when we have control over the building during the construction period. If we continue to control the building after the construction period, the arrangement is classified as a financing obligation instead of a lease. The building is depreciated over the shorter of its useful life or the term of the obligation. If we do not control the building after the construction period ends, the assets and liabilities for construction costs are derecognized, and we classify the lease as either operating or finance.
Video And Music Content	Digital Video and Music Content We obtain video content, inclusive of episodic television and movies, and music content for customers through licensing agreements that have a wide range of licensing provisions including both fixed and variable payment schedules. When the license fee for a specific video or music title is determinable or reasonably estimable and the content is available to us, we recognize an asset and a corresponding liability for the amounts owed. We reduce the liability as payments are made and we amortize the asset to “Cost of sales” on an accelerated basis, based on estimated usage or viewing patterns, or on a straight-line basis. If the licensing fee is not determinable or reasonably estimable, no asset or liability is recorded and licensing costs are expensed as incurred. We also develop original video content for which the production costs are capitalized and amortized to “Cost of sales” predominantly on an accelerated basis that follows the viewing patterns associated with the content. The weighted average remaining life of our capitalized video content is 2.6 years. Our produced and licensed video content is primarily monetized together as a unit, referred to as a film group, in each major geography where we offer Amazon Prime memberships. These film groups are evaluated for impairment whenever an event occurs or circumstances change indicating the fair value is less than the carrying value. The total capitalized costs of video, which is primarily released content, and music as of December 31, 2018 and September 30, 2019 were $3.8 billion and $5.0 billion. Total video and music expense was $1.7 billion and $1.9 billion in Q3 2018 and Q3 2019, and $4.9 billion and $5.5 billion for the nine months ended September 30, 2018 and 2019. 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.
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, 2018 was $7.9 billion, of which $5.7 billion was recognized as revenue during the nine months ended September 30, 2019. Included in “Other long-term liabilities” on our consolidated balance sheets was $1.4 billion and $1.6 billion of unearned revenue as of December 31, 2018 and September 30, 2019. 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 $27.4 billion as of September 30, 2019. The weighted average remaining life of our long-term contracts is 3.3 years. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term.
Accounting Pronouncements Recently Adopted	Accounting Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) amending the accounting for leases, primarily requiring the recognition of lease assets and liabilities for operating leases with terms of more than twelve months on our consolidated balance sheets. Under the new guidance, leases previously described as capital lease obligations and finance lease obligations are now referred to as finance leases and financing obligations, respectively. We adopted this ASU on January 1, 2019 by recording an immaterial cumulative adjustment to retained earnings rather than retrospectively adjusting prior periods. Prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting policies resulting in a balance sheet presentation that is not comparable to the prior period in the first year of adoption. The adoption of this ASU resulted in the recognition of operating lease assets and liabilities of approximately $21 billion, which included the reclassification of finance lease obligations to operating leases of $1.2 billion. As of December 31, 2018, amounts related to finance lease obligations and construction liabilities totaled $9.6 billion, of which $1.5 billion was derecognized for buildings that we do not control during the construction period and $5.4 billion and $1.5 billion were reclassified to finance leases and operating leases, respectively. In March 2019, the FASB issued an ASU amending the accounting for film costs, inclusive of episodic television and movie costs. The new guidance aligns the accounting for production costs of episodic television with that of movies by requiring production costs to be capitalized. Previously, we only capitalized a portion of the production costs related to our produced episodic television content. We adopted this ASU as of January 1, 2019 and began capitalizing substantially all of our production costs. Adoption of this ASU resulted in approximately $631 million of incremental capitalized film costs classified in “Other Assets” for the nine months ended September 30, 2019.

Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Calculation of Diluted Shares

The following table shows the calculation of diluted shares (in millions):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2018	2019	2018	2019
Shares used in computation of basic earnings per share	488	495	486	493
Total dilutive effect of outstanding stock awards	13	9	14	10
Shares used in computation of diluted earnings per share	501	504	500	503

Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Fair Value by Major Security Type

The following table summarizes, by major security type, our cash, cash equivalents, restricted cash, and marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in millions):



	December 31, 2018			September 30, 2019
	Total Estimated Fair Value			Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Total Estimated Fair Value
Cash	$	10,406		$	8,900	$	—	$	—		$	8,900
Level 1 securities:
Money market funds	12,515			9,869		—		—			9,869
Equity securities (1)	170										225
Level 2 securities:
Foreign government and agency securities	815			4,170		—		—			4,170
U.S. government and agency securities	11,667			6,875		13		(4		)	6,884
Corporate debt securities	4,990			11,132		37		(1		)	11,168
Asset-backed securities	892			2,180		8		(1		)	2,187
Other fixed income securities	188			293		2		—			295
Equity securities (1)	33										5
	$	41,676		$	43,419	$	60	$	(6	)	$	43,703
Less: Restricted cash, cash equivalents, and marketable securities (2)	(426		)								(302		)
Total cash, cash equivalents, and marketable securities	$	41,250									$	43,401

___________________


(1)	The related unrealized gain (loss) recorded in “Other income (expense), net” was $(55) million in Q3 2019 and $27 million for the nine months ended September 30, 2019.

(2)

We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable securities as collateral for real estate leases, amounts due to third-party sellers in certain jurisdictions, debt, and standby and trade letters of credit. We classify cash, cash equivalents, and marketable securities with use restrictions of less than twelve months as “Accounts receivable, net and other” and of twelve months or longer as non-current “Other assets” on our consolidated balance sheets. See “Note 4 — Commitments and Contingencies.”

Investments Classified by Contractual Maturity Date

The following table summarizes the remaining contractual maturities of our cash equivalents and marketable fixed income securities as of September 30, 2019 (in millions):



	Amortized Cost		Estimated Fair Value
Due within one year	$	24,194	$	24,202
Due after one year through five years	9,104		9,146
Due after five years through ten years	309		310
Due after ten years	912		915
Total	$	34,519	$	34,573

Actual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions.

Reconciliation of cash, cash equivalents, and restricted cash

The following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows (in millions):



	December 31, 2018		September 30, 2019
Cash and cash equivalents	$	31,750	$	23,255
Restricted cash included in accounts receivable, net and other	418		257
Restricted cash included in other assets	5		42
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows	$	32,173	$	23,554

Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Lease, Cost

Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions):



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019

Operating lease cost (1)	$	934	$	2,644
Finance lease cost:
Amortization of lease assets	2,609		7,319
Interest on lease liabilities	164		479
Finance lease cost	2,773		7,798
Variable lease cost	244		775
Total lease cost	$	3,951	$	11,217

__________________

(1)

Rental expense under operating lease agreements was $859 million for Q3 2018 and $2.5 billion for the nine months ended September 30, 2018.

Other Operating and Finance Lease Information

Other information about lease amounts recognized in our consolidated financial statements is summarized as follows:



	September 30, 2019

Weighted-average remaining lease term – operating leases	11.7 years
Weighted-average remaining lease term – finance leases	5.7 years
Weighted-average discount rate – operating leases	3.2	%
Weighted-average discount rate – finance leases	2.8	%

Operating and Finance Lease Liability Reconciliation

As of September 30, 2019, our lease liabilities were as follows (in millions):



	Operating Leases			Finance Leases			Total

Gross lease liabilities	$	30,550		$	27,310		$	57,860
Less: imputed interest	(6,646		)	(1,936		)	(8,582		)
Present value of lease liabilities	23,904			25,374			49,278
Less: current portion of lease liabilities	(2,842		)	(9,378		)	(12,220		)
Total long-term lease liabilities	$	21,062		$	15,996		$	37,058

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2019

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 September 30, 2019 (in millions):



	Three Months Ended December 31,		Year Ended December 31,
	2019		2020		2021		2022		2023		Thereafter		Total
Debt principal and interest	$	1,556	$	2,345	$	1,928	$	2,144	$	1,848	$	30,047	$	39,868
Operating lease liabilities	795		3,594		3,337		2,977		2,657		17,190		30,550
Finance lease liabilities, including interest	2,124		9,364		6,355		2,754		1,158		5,555		27,310
Financing obligations, including interest	21		100		102		103		105		1,796		2,227
Unconditional purchase obligations (1)	270		3,864		3,388		3,126		2,991		5,219		18,858
Other commitments (2) (3)	1,377		2,589		1,554		1,434		1,011		10,521		18,486
Total commitments	$	6,143	$	21,856	$	16,664	$	12,538	$	9,770	$	70,328	$	137,299

___________________

(1)

Includes unconditional purchase obligations related to certain products offered in our Whole Foods Market stores and long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets. For those digital media content agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified.


(2)	Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements and lease arrangements prior to the lease commencement date and digital media content liabilities associated with long-term digital media content assets with initial terms greater than one year.

(3)

Excludes approximately $3.8 billion of accrued tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any.

Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Long-Term Debt Obligations

The face value of our total long-term debt obligations is as follows (in millions):



	December 31, 2018			September 30, 2019
2.600% Notes due on December 5, 2019 (2)	1,000			1,000
1.900% Notes due on August 21, 2020 (3)	1,000			1,000
3.300% Notes due on December 5, 2021 (2)	1,000			1,000
2.500% Notes due on November 29, 2022 (1)	1,250			1,250
2.400% Notes due on February 22, 2023 (3)	1,000			1,000
2.800% Notes due on August 22, 2024 (3)	2,000			2,000
3.800% Notes due on December 5, 2024 (2)	1,250			1,250
5.200% Notes due on December 3, 2025 (4)	1,000			1,000
3.150% Notes due on August 22, 2027 (3)	3,500			3,500
4.800% Notes due on December 5, 2034 (2)	1,250			1,250
3.875% Notes due on August 22, 2037 (3)	2,750			2,750
4.950% Notes due on December 5, 2044 (2)	1,500			1,500
4.050% Notes due on August 22, 2047 (3)	3,500			3,500
4.250% Notes due on August 22, 2057 (3)	2,250			2,250
Credit Facility	594			603
Other long-term debt	121			558
Total debt	24,965			25,411
Less current portion of long-term debt	(1,371		)	(2,841		)
Face value of long-term debt	$	23,594		$	22,570

_____________________________


(1)	Issued in November 2012, effective interest rate of the 2022 Notes was 2.66%.


(2)	Issued in December 2014, effective interest rates of the 2019, 2021, 2024, 2034, and 2044 Notes were 2.73%, 3.43%, 3.90%, 4.92%, and 5.11%.


(3)	Issued in August 2017, effective interest rates of the 2020, 2023, 2024, 2027, 2037, 2047, and 2057 Notes were 2.16%, 2.56%, 2.95%, 3.25%, 3.94%, 4.13%, and 4.33%.

(4)

Consists of $872 million of 2025 Notes issued in December 2017 in exchange for notes assumed in connection with the acquisition of Whole Foods Market and $128 million of 2025 Notes issued by Whole Foods Market that did not participate in our December 2017 exchange offer. The effective interest rate of the 2025 Notes was 3.02%.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
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-Paragraph 1
-Subparagraph (SX 210.5-02.22)
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-Topic 835
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-Section 45
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-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 235
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-Subparagraph (SX 210.4-08.(e),(f))
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Stock-Based Compensation Expense

Stock-based compensation expense is as follows (in millions):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2019		2018		2019
Cost of sales	$	19	$	39	$	52	$	106
Fulfillment	269		301		834		895
Marketing	201		298		552		813
Technology and content	719		966		2,137		2,719
General and administrative	142		175		426		491
Total stock-based compensation expense	$	1,350	$	1,779	$	4,001	$	5,024

Nonvested Restricted Stock Units Activity

The following table summarizes our restricted stock unit activity for the nine months ended September 30, 2019 (in millions):



	Number of Units		Weighted-Average Grant-Date Fair Value
Outstanding as of December 31, 2018	15.9		$	1,024
Units granted	5.8		1,811
Units vested	(4.6	)	793
Units forfeited	(1.3	)	1,179
Outstanding as of September 30, 2019	15.8		1,367

Scheduled Vesting Restricted Stock Unit Activity

Scheduled vesting for outstanding restricted stock units as of September 30, 2019, is as follows (in millions):



	Three Months Ended December 31,	Year Ended December 31,
	2019	2020	2021	2022	2023	Thereafter	Total
Scheduled vesting—restricted stock units	2.0	6.0	5.0	1.8	0.8	0.2	15.8

Changes in Stockholders Equity

The following table shows the changes in stockholders’ equity (in millions):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2019			2018			2019
Total beginning stockholders’ equity	$	34,995		$	53,061		$	27,709		$	43,549

Beginning and ending common stock	5			5			5			5

Beginning and ending treasury stock	(1,837		)	(1,837		)	(1,837		)	(1,837		)

Beginning additional paid-in capital	24,028			30,035			21,389			26,791
Stock-based compensation and issuance of employee benefit plan stock	1,347			1,782			3,986			5,026
Ending additional paid-in capital	25,375			31,817			25,375			31,817

Beginning accumulated other comprehensive loss	(934		)	(960		)	(484		)	(1,035		)
Other comprehensive income (loss)	(100		)	(469		)	(550		)	(394		)
Ending accumulated other comprehensive loss	(1,034		)	(1,429		)	(1,034		)	(1,429		)

Beginning retained earnings	13,733			25,818			8,636			19,625
Cumulative effect of changes in accounting principles (1)	—			—			934			7
Net income	2,883			2,134			7,046			8,320
Ending retained earnings	16,616			27,952			16,616			27,952

Total ending stockholders’ equity	$	39,125		$	56,508		$	39,125		$	56,508

___________________

(1)

We recorded cumulative effect adjustments related to the new revenue and income tax standards in Q1 2018 and the new lease standard in Q1 2019. See Item 1 of Part I, “Financial Statements — Note 1 — Accounting Policies — Accounting Pronouncements Recently Adopted” for additional information.

Segment Information (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Information on Reportable Segments and Reconciliation to Consolidated Net Income

Information on reportable segments and reconciliation to consolidated net income is as follows (in millions):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2019			2018			2019
North America
Net sales	$	34,348		$	42,638		$	97,242		$	117,104
Operating expenses	32,316			41,356			92,227			111,971
Operating income	$	2,032		$	1,282		$	5,015		$	5,133

International
Net sales	$	15,549		$	18,348		$	45,037		$	50,910
Operating expenses	15,934			18,734			46,536			51,986
Operating income (loss)	$	(385	)	$	(386	)	$	(1,499	)	$	(1,076	)

AWS
Net sales	$	6,679		$	8,995		$	18,225		$	25,072
Operating expenses	4,602			6,734			13,106			18,467
Operating income	$	2,077		$	2,261		$	5,119		$	6,605

Consolidated
Net sales	$	56,576		$	69,981		$	160,504		$	193,086
Operating expenses	52,852			66,824			151,869			182,424
Operating income	3,724			3,157			8,635			10,662
Total non-operating income (expense)	(334		)	(525		)	(724		)	(739		)
Provision for income taxes	(508		)	(494		)	(870		)	(1,588		)
Equity-method investment activity, net of tax	1			(4		)	5			(15		)
Net income	$	2,883		$	2,134		$	7,046		$	8,320

Disaggregation of Revenue

Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2019		2018		2019
Net Sales:
Online stores (1)	$	29,061	$	35,039	$	83,165	$	95,590
Physical stores (2)	4,248		4,192		12,824		12,829
Third-party seller services (3)	10,395		13,212		29,361		36,316
Subscription services (4)	3,698		4,957		10,209		13,975
AWS	6,679		8,995		18,225		25,072
Other (5)	2,495		3,586		6,720		9,304
Consolidated	$	56,576	$	69,981	$	160,504	$	193,086

____________________________

(1)

Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, music, videos, games, and software. These product sales include digital products sold on a transactional basis. Digital product subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.”


(2)	Includes product sales where our customers physically select items in a store. Sales from customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.”


(3)	Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.


(4)	Includes annual and monthly fees associated with Amazon Prime memberships, as well as audiobook, digital video, e-book, digital music, and other non-AWS subscription services.

(5)

Primarily includes sales of advertising services, as well as sales related to our other service offerings.

Accounting Policies - Calculation of Diluted Shares (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Accounting Policies [Abstract]
Shares used in computation of basic earnings per share	495	488	493	486
Total dilutive effect of outstanding stock awards	9	13	10	14
Shares used in computation of diluted earnings per share	504	501	503	500

Accounting Policies - Accounts Receivable, Net and Other (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net and other	$ 16,887	$ 16,677
Customer Receivables, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net and other	10,600	9,400
Vendor Receivables, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net and other	2,500	3,200
Seller Receivables, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net and other	$ 790	$ 710

Accounting Policies - Leases (Details)	9 Months Ended
Accounting Policies - Leases (Details)	Sep. 30, 2019
Minimum \| Equipment
Lessee, Lease, Description [Line Items]
Lessee, Operating and Finance Lease, Term of Contract	2 years
Minimum \| Property
Lessee, Lease, Description [Line Items]
Lessee, Operating and Finance Lease, Term of Contract	2 years
Maximum \| Equipment
Lessee, Lease, Description [Line Items]
Lessee, Operating and Finance Lease, Term of Contract	10 years
Maximum \| Property
Lessee, Lease, Description [Line Items]
Lessee, Operating and Finance Lease, Term of Contract	20 years

Accounting Policies - Video and Music Content (Details) - USD ($) $ in Billions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Accounting Policies [Abstract]
Weighted Average Life, Capitalized Video Content			2 years 7 months 6 days
Video and Music Content, Capitalized Costs	$ 5.0		$ 5.0		$ 3.8
Video and Music Content, Expense	$ 1.9	$ 1.7	$ 5.5	$ 4.9

Accounting Policies - Unearned Revenue (Details) - USD ($) $ in Billions	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Unearned revenue		$ 7.9
Unearned revenue, revenue recognized from beginning balance	$ 5.7
Unearned Revenue, Noncurrent	1.6	$ 1.4
Remaining performance obligation, contracts exceeding one year	$ 27.4
Remaining performance obligation, expected timing of satisfaction, weighted average remaining life	3 years 3 months 18 days

Accounting Policies - Accounting Pronouncements Recently Adopted (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Leases, Asset	$ 23,114		$ 0
Operating Lease, Liability	23,904
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Leases, Asset		$ 21,000
Operating Lease, Liability		(21,000)
Financing Obligations Reclassified to Operating Leases		$ 1,200	1,500
Financing Obligations and Construction Liabilities			9,600
Build-to-suit liabilities derecognized			1,500
Financing Obligations Reclassified to Finance Leases			$ 5,400
Accounting Standards Update 2019-02 [Domain]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Incremental Capitalized Film Costs	$ 631

Financial Instruments - Fair Values on Recurring Basis (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Schedule of Investments [Line Items]
Equity Securities, FV-NI, Unrealized Gain (Loss)	$ (55)	$ 27
Recurring
Schedule of Investments [Line Items]
Cash	8,900	8,900	$ 10,406
Total Estimated Fair Value
Cash, cash equivalents and marketable securities	43,703	43,703	41,676
Less: Restricted cash, cash equivalents, and marketable securities	(302)	(302)	(426)
Total cash, cash equivalents, and marketable securities	43,401	43,401	41,250
Cost or Amortized Cost
Cash, cash equivalents and marketable securities	43,419	43,419
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax
Debt Securities, Available for Sale, Unrealized Gain	60	60
Debt Securities, Available for Sale, Unrealized Loss	(6)	(6)
Recurring \| Level 1 securities
Total Estimated Fair Value
Equity Securities, FV-NI	225	225	170
Recurring \| Level 1 securities \| Money market funds
Schedule of Investments [Line Items]
Money market funds	9,869	9,869	12,515
Recurring \| Level 2 securities
Total Estimated Fair Value
Equity Securities, FV-NI	5	5	33
Recurring \| Level 2 securities \| Foreign government and agency securities
Total Estimated Fair Value
Debt Securities, Available for Sale, Fair Value	4,170	4,170	815
Cost or Amortized Cost
Debt Securities, Available for Sale, Cost	4,170	4,170
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax
Debt Securities, Available for Sale, Unrealized Gain	0	0
Debt Securities, Available for Sale, Unrealized Loss	0	0
Recurring \| Level 2 securities \| U.S. government and agency securities
Total Estimated Fair Value
Debt Securities, Available for Sale, Fair Value	6,884	6,884	11,667
Cost or Amortized Cost
Debt Securities, Available for Sale, Cost	6,875	6,875
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax
Debt Securities, Available for Sale, Unrealized Gain	13	13
Debt Securities, Available for Sale, Unrealized Loss	(4)	(4)
Recurring \| Level 2 securities \| Corporate debt securities
Total Estimated Fair Value
Debt Securities, Available for Sale, Fair Value	11,168	11,168	4,990
Cost or Amortized Cost
Debt Securities, Available for Sale, Cost	11,132	11,132
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax
Debt Securities, Available for Sale, Unrealized Gain	37	37
Debt Securities, Available for Sale, Unrealized Loss	(1)	(1)
Recurring \| Level 2 securities \| Asset-backed securities
Total Estimated Fair Value
Debt Securities, Available for Sale, Fair Value	2,187	2,187	892
Cost or Amortized Cost
Debt Securities, Available for Sale, Cost	2,180	2,180
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax
Debt Securities, Available for Sale, Unrealized Gain	8	8
Debt Securities, Available for Sale, Unrealized Loss	(1)	(1)
Recurring \| Level 2 securities \| Other fixed income securities
Total Estimated Fair Value
Debt Securities, Available for Sale, Fair Value	295	295	$ 188
Cost or Amortized Cost
Debt Securities, Available for Sale, Cost	293	293
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax
Debt Securities, Available for Sale, Unrealized Gain	2	2
Debt Securities, Available for Sale, Unrealized Loss	$ 0	$ 0

Financial Instruments - Contractual Maturities (Details) $ in Millions	Sep. 30, 2019 USD ($)
Amortized Cost
Due within one year	$ 24,194
Due after one year through five years	9,104
Due after five years through ten years	309
Due after ten years	912
Cash Equivalents and Marketable Fixed Income Securities, Cost	34,519
Estimated Fair Value
Due within one year	24,202
Due after one year through five years	9,146
Due after five years through ten years	310
Due after ten years	915
Cash Equivalents and Marketable Fixed Income Securities, Fair Value	$ 34,573

Financial Instruments - Equity Warrant Assets and Non-Marketable Equity Securities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Investments, Warrant Assets and Non-Marketable Equity Securities
Equity Securities without Readily Determinable Fair Value, Amount	$ 894		$ 894		$ 282
Warrant
Investments, Warrant Assets and Non-Marketable Equity Securities
Gain (loss) on warrant assets	(151)	$ (62)	(79)	$ 25
Warrant \| Level 2 assets
Investments, Warrant Assets and Non-Marketable Equity Securities
Fair value of warrant assets	$ 526		$ 526		$ 440

Financial Instruments - Reconciliation to Cash Flow (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Cash and cash equivalents	$ 23,255		$ 31,750
Restricted cash included in accounts receivable, net and other	257		418
Restricted cash included in other assets	42		5
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows	$ 23,554	$ 22,965	$ 32,173	$ 21,032	$ 20,536	$ 21,856	$ 13,960

Leases - Additional Information (Details) - USD ($) $ in Billions	Sep. 30, 2019	Dec. 31, 2018
Leases [Abstract]
Finance Lease, Right-of-Use Asset	$ 53.7	$ 36.1
Finance Lease, Right-of-Use-Asset, Accumulated Amortization	$ 27.8	$ 19.8

Leases - Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Millions	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Leases [Abstract]
Operating lease cost	$ 934		$ 2,644
Finance lease amortization of lease assets	2,609		7,319
Finance lease interest on lease liabilities	164		479
Finance lease cost	2,773		7,798
Variable lease cost	244		775
Total lease cost	$ 3,951		$ 11,217
Rental expense under operating lease agreements		$ 859		$ 2,500

Leases - Other Operating and Finance Lease Information (Details)	Sep. 30, 2019
Leases [Abstract]
Weighted-average remaining lease term – operating leases	11 years 8 months 12 days
Weighted-average remaining lease term – finance leases	5 years 8 months 12 days
Weighted-average discount rate – operating leases	3.20%
Weighted-average discount rate – finance leases	2.80%

Leases - Operating and Finance Lease Liability Reconciliation (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Leases [Abstract]
Gross lease liabilities - operating leases	$ 30,550
Gross lease liabilities - finance leases	27,310
Gross lease liabilities	57,860
Imputed interest - operating leases	(6,646)
Imputed interest - finance leases	(1,936)
Imputed interest	(8,582)
Present value of operating leases	23,904
Present value of finance leases	25,374
Present value of lease liabilities	49,278
Current portion of operating lease liabilities	(2,842)
Current portion of finance lease liabilities	(9,378)
Current portion of lease liabilities	(12,220)
Total long-term operating lease liabilities	21,062
Total long-term finance lease liabilities	15,996
Total long-term lease liabilities	$ 37,058	$ 9,650

Commitments and Contingencies - Principal Contractual Commitments Excluding Open Orders (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Debt principal and interest
Six Months Ended December 31, 2019	$ 1,556
Year Ended December 31, 2020	2,345
Year Ended December 31, 2021	1,928
Year Ended December 31, 2022	2,144
Year Ended December 31, 2023	1,848
Thereafter	30,047
Total	39,868
Operating lease liabilities
Six Months Ended December 31, 2019	795
Year Ended December 31, 2020	3,594
Year Ended December 31, 2021	3,337
Year Ended December 31, 2022	2,977
Year Ended December 31, 2023	2,657
Thereafter	17,190
Gross lease liabilities - operating leases	30,550
Finance lease liabilities, including interest
Six Months Ended December 31, 2019	2,124
Year Ended December 31, 2020	9,364
Year Ended December 31, 2021	6,355
Year Ended December 31, 2022	2,754
Year Ended December 31, 2023	1,158
Thereafter	5,555
Gross lease liabilities - finance leases	27,310
Financing obligations, including interest
Six Months Ended December 31, 2019	21
Year Ended December 31, 2020	100
Year Ended December 31, 2021	102
Year Ended December 31, 2022	103
Year Ended December 31, 2023	105
Thereafter	1,796
Total	2,227
Unconditional purchase obligations
Six Months Ended December 31, 2019	270
Year Ended December 31, 2020	3,864
Year Ended December 31, 2021	3,388
Year Ended December 31, 2022	3,126
Year Ended December 31, 2023	2,991
Thereafter	5,219
Total	18,858
Other commitments
Six Months Ended December 31, 2019	1,377
Year Ended December 31, 2020	2,589
Year Ended December 31, 2021	1,554
Year Ended December 31, 2022	1,434
Year Ended December 31, 2023	1,011
Thereafter	10,521
Total	18,486
Accrued tax contingencies	3,800	$ 3,400
Total commitments
Six Months Ended December 31, 2019	6,143
Year Ended December 31, 2020	21,856
Year Ended December 31, 2021	16,664
Year Ended December 31, 2022	12,538
Year Ended December 31, 2023	9,770
Thereafter	70,328
Total	$ 137,299

Commitments and Contingencies - Pledged Assets (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Pledged assets	$ 686	$ 575

Debt - Additional Information (Details)	1 Months Ended
Debt - Additional Information (Details)	Apr. 30, 2018 USD ($) extension	Oct. 31, 2016 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Borrowings outstanding			$ 25,411,000,000	$ 24,965,000,000
Face value of long-term debt			22,570,000,000	23,594,000,000
Commercial Paper
Debt Instrument [Line Items]
Credit term	397 days
Commercial Paper			0	0
Commercial Paper, Maximum Borrowing Capacity	$ 7,000,000,000.0
Senior Notes
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net			101,000,000	101,000,000
Borrowings outstanding			24,300,000,000
Estimated fair value of notes			27,400,000,000	24,300,000,000
Senior Notes \| 5.200% Notes due on December 3, 2025
Debt Instrument [Line Items]
Borrowings outstanding			1,000,000,000	1,000,000,000
Credit Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Borrowings outstanding			603,000,000	594,000,000
Credit Facility \| Revolving Credit Facility \| October 2016 Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit maximum borrowing capacity		$ 500,000,000	650,000,000
Credit term		3 years
Commitment fee percentage		0.50%
Borrowings outstanding			$ 603,000,000	$ 594,000,000
Weighted average interest rate			3.40%	3.20%
Collateral amount			$ 698,000,000	$ 686,000,000
Credit Facility \| Revolving Credit Facility \| October 2016 Revolving Credit Facility \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		1.65%
Credit Facility \| Revolving Credit Facility \| April 2018 Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit maximum borrowing capacity	$ 7,000,000,000.0
Credit term	3 years
Line Of Credit Facility, Number Of Extensions \| extension	3
Line Of Credit Facility, Additional Term	1 year
Commitment fee percentage	0.04%
Borrowings outstanding			0	0
Credit Facility \| Revolving Credit Facility \| April 2018 Revolving Credit Facility \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	0.50%
Amazon.com, Inc. \| 5.200% Notes due on December 3, 2025
Debt Instrument [Line Items]
Borrowings outstanding			872,000,000
Whole Foods Market, Inc. \| 5.200% Notes due on December 3, 2025
Debt Instrument [Line Items]
Borrowings outstanding			128,000,000
Line of Credit and Other Long-term Debt
Debt Instrument [Line Items]
Borrowings outstanding			1,200,000,000	715,000,000
Other Long-term Debt
Debt Instrument [Line Items]
Borrowings outstanding			$ 558,000,000	$ 121,000,000
Weighted average interest rate			4.70%	6.00%

Debt - Long-Term Debt Obligations (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018	Apr. 30, 2018	Oct. 31, 2016
Debt Instrument [Line Items]
Total debt	$ 25,411,000,000	$ 24,965,000,000
Less current portion of long-term debt	(2,841,000,000)	(1,371,000,000)
Face value of long-term debt	22,570,000,000	23,594,000,000
Senior Notes
Debt Instrument [Line Items]
Total debt	$ 24,300,000,000
Senior Notes \| 2.600% Notes due on December 5, 2019
Debt Instrument [Line Items]
Stated interest rate	2.60%
Total debt	$ 1,000,000,000	1,000,000,000
Effective interest rates	2.73%
Senior Notes \| 1.900% Notes due on August 21, 2020
Debt Instrument [Line Items]
Stated interest rate	1.90%
Total debt	$ 1,000,000,000	1,000,000,000
Effective interest rates	2.16%
Senior Notes \| 3.300% Notes due on December 5, 2021
Debt Instrument [Line Items]
Stated interest rate	3.30%
Total debt	$ 1,000,000,000	1,000,000,000
Effective interest rates	3.43%
Senior Notes \| 2.500% Notes due on November 29, 2022
Debt Instrument [Line Items]
Stated interest rate	2.50%
Total debt	$ 1,250,000,000	1,250,000,000
Effective interest rates	2.66%
Senior Notes \| 2.400% Notes due on February 22, 2023
Debt Instrument [Line Items]
Stated interest rate	2.40%
Total debt	$ 1,000,000,000	1,000,000,000
Effective interest rates	2.56%
Senior Notes \| 2.800% Notes due on August 22, 2024
Debt Instrument [Line Items]
Stated interest rate	2.80%
Total debt	$ 2,000,000,000	2,000,000,000
Effective interest rates	2.95%
Senior Notes \| 3.800% Notes due on December 5, 2024
Debt Instrument [Line Items]
Stated interest rate	3.80%
Total debt	$ 1,250,000,000	1,250,000,000
Effective interest rates	3.90%
Senior Notes \| 5.200% Notes due on December 3, 2025
Debt Instrument [Line Items]
Stated interest rate	5.20%
Total debt	$ 1,000,000,000	1,000,000,000
Effective interest rates	3.02%
Senior Notes \| 3.150% Notes due on August 22, 2027
Debt Instrument [Line Items]
Stated interest rate	3.15%
Total debt	$ 3,500,000,000	3,500,000,000
Effective interest rates	3.25%
Senior Notes \| 4.800% Notes due on December 5, 2034
Debt Instrument [Line Items]
Stated interest rate	4.80%
Total debt	$ 1,250,000,000	1,250,000,000
Effective interest rates	4.92%
Senior Notes \| 3.875% Notes due on August 22, 2037
Debt Instrument [Line Items]
Stated interest rate	3.875%
Total debt	$ 2,750,000,000	2,750,000,000
Effective interest rates	3.94%
Senior Notes \| 4.950% Notes due on December 5, 2044
Debt Instrument [Line Items]
Stated interest rate	4.95%
Total debt	$ 1,500,000,000	1,500,000,000
Effective interest rates	5.11%
Senior Notes \| 4.050% Notes due on August 22, 2047
Debt Instrument [Line Items]
Stated interest rate	4.05%
Total debt	$ 3,500,000,000	3,500,000,000
Effective interest rates	4.13%
Senior Notes \| 4.250% Notes due on August 22, 2057
Debt Instrument [Line Items]
Stated interest rate	4.25%
Total debt	$ 2,250,000,000	2,250,000,000
Effective interest rates	4.33%
Credit Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Total debt	$ 603,000,000	594,000,000
Credit Facility \| October 2016 Revolving Credit Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit maximum borrowing capacity	650,000,000			$ 500,000,000
Credit Facility \| April 2018 Revolving Credit Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit maximum borrowing capacity			$ 7,000,000,000.0
Other long-term debt
Debt Instrument [Line Items]
Total debt	$ 558,000,000	$ 121,000,000

Stockholders' Equity - Additional Information (Details) - USD ($) shares in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Feb. 29, 2016
Class of Stock [Line Items]
Common shares outstanding plus underlying outstanding stock awards	511		507
Net unrecognized compensation cost related to unvested stock-based compensation arrangements	$ 9,400,000,000
Compensation cost expected to be expensed in next twelve months, percentage	50.00%
Net unrecognized compensation cost related to unvested stock-based compensation arrangements, weighted average recognition period (in years)	1 year 1 month 6 days
Estimated forfeiture rate	27.00%
February 2016 Program
Class of Stock [Line Items]
Stock repurchase, authorized amount				$ 5,000,000,000.0
Stock Repurchased During Period, Value	$ 0	$ 0

Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 1,779	$ 1,350	$ 5,024	$ 4,001
Cost of sales
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	39	19	106	52
Fulfillment
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	301	269	895	834
Marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	298	201	813	552
Technology and content
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	966	719	2,719	2,137
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 175	$ 142	$ 491	$ 426

Stockholders' Equity - Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Millions	9 Months Ended
	Sep. 30, 2019 $ / shares shares
Number of Units
Beginning balance (in shares) \| shares	15.9
Units granted (in shares) \| shares	5.8
Units vested (in shares) \| shares	(4.6)
Units forfeited (in shares) \| shares	(1.3)
Ending balance (in shares) \| shares	15.8
Weighted-Average Grant-Date Fair Value
Outstanding as of December 31, 2018 \| $ / shares	$ 1,024
Units granted \| $ / shares	1,811
Units vested \| $ / shares	793
Units forfeited \| $ / shares	1,179
Outstanding as of September 30, 2019 \| $ / shares	$ 1,367

Stockholders' Equity - Scheduled Vesting for Outstanding Restricted Stock Units (Details) - Restricted Stock Units - shares shares in Millions	Sep. 30, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Six Months Ended December 31, 2019	2.0
Year Ended December 31, 2020	6.0
Year Ended December 31, 2021	5.0
Year Ended December 31, 2022	1.8
Year Ended December 31, 2023	0.8
Thereafter	0.2
Total	15.8	15.9

Stockholders' Equity - Changes in Stockholders Equity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jul. 01, 2019	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018	Jul. 01, 2018	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Stockholders' equity	$ 56,508	$ 39,125	$ 56,508	$ 39,125	$ 56,508	$ 39,125		$ 53,061		$ 43,549		$ 34,995		$ 27,709
Other comprehensive income (loss)	(469)	(100)	(394)	(550)
Net Income	2,134	2,883	8,320	7,046	11,347	8,902
Common stock
Stockholders' equity	5	5	5	5	5	5		5		5		5		5
Treasury stock
Stockholders' equity	(1,837)	(1,837)	(1,837)	(1,837)	(1,837)	(1,837)		(1,837)		(1,837)		(1,837)		(1,837)
Additional paid-in capital
Stockholders' equity	31,817	25,375	31,817	25,375	31,817	25,375		30,035		26,791		24,028		21,389
Stock-based compensation and issuance of employee benefit plan stock	1,782	1,347	5,026	3,986
Accumulated other comprehensive income (loss)
Stockholders' equity	(1,429)	(1,034)	(1,429)	(1,034)	(1,429)	(1,034)		(960)		(1,035)		(934)		(484)
Other comprehensive income (loss)	(469)	(100)	(394)	(550)
Retained earnings
Stockholders' equity	27,952	16,616	27,952	16,616	$ 27,952	$ 16,616		$ 25,818		$ 19,625		$ 13,733		$ 8,636
Cumulative effect of changes in accounting principles							$ 0		$ 7		$ 0		$ 934
Net Income	$ 2,134	$ 2,883	$ 8,320	$ 7,046

Income Taxes - Income Taxes (Details) € in Millions, $ in Millions		3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 04, 2017 EUR (€)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Income Tax Disclosure [Abstract]
Provision for income taxes		$ 494	$ 508	$ 1,588	$ 870
Discrete tax benefits				1,000	1,300
Cash paid for income taxes, net of refunds		241	$ 200	692	$ 1,013	$ 863	$ 1,106
Tax contingencies		$ 3,800		3,800		$ 3,800		$ 3,400
Internal Revenue Service (IRS) \| Domestic Tax Authority [Member]
Income Tax Examination [Line Items]
Tax examination, estimate of additional tax expense				$ 1,500
Luxembourg Tax Administration [Member] \| Foreign Tax Authority [Member]
Income Tax Examination [Line Items]
Tax examination, estimate of additional tax expense \| €	€ 250

Segment Information - Reportable Segments and Reconciliation to Consolidated Net Income (Details) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) segment	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Segment Reporting [Abstract]
Number of operating segments \| segment			3
Segment Reporting Disclosure [Line Items]
Net sales	$ 69,981	$ 56,576	$ 193,086	$ 160,504
Operating expenses	66,824	52,852	182,424	151,869
Operating income (loss)	3,157	3,724	10,662	8,635
Total non-operating income (expense)	(525)	(334)	(739)	(724)
Provision for income taxes	(494)	(508)	(1,588)	(870)
Equity-method investment activity, net of tax	(4)	1	(15)	5
Net income	2,134	2,883	8,320	7,046	$ 11,347	$ 8,902
North America
Segment Reporting Disclosure [Line Items]
Net sales	42,638	34,348	117,104	97,242
Operating expenses	41,356	32,316	111,971	92,227
Operating income (loss)	1,282	2,032	5,133	5,015
International
Segment Reporting Disclosure [Line Items]
Net sales	18,348	15,549	50,910	45,037
Operating expenses	18,734	15,934	51,986	46,536
Operating income (loss)	(386)	(385)	(1,076)	(1,499)
AWS
Segment Reporting Disclosure [Line Items]
Net sales	8,995	6,679	25,072	18,225
Operating expenses	6,734	4,602	18,467	13,106
Operating income (loss)	$ 2,261	$ 2,077	$ 6,605	$ 5,119

Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total net sales	$ 69,981	$ 56,576	$ 193,086	$ 160,504
Online stores
Disaggregation of Revenue [Line Items]
Total net sales	35,039	29,061	95,590	83,165
Physical stores
Disaggregation of Revenue [Line Items]
Total net sales	4,192	4,248	12,829	12,824
Third-party seller services
Disaggregation of Revenue [Line Items]
Total net sales	13,212	10,395	36,316	29,361
Subscription services
Disaggregation of Revenue [Line Items]
Total net sales	4,957	3,698	13,975	10,209
AWS
Disaggregation of Revenue [Line Items]
Total net sales	8,995	6,679	25,072	18,225
Other
Disaggregation of Revenue [Line Items]
Total net sales	$ 3,586	$ 2,495	$ 9,304	$ 6,720