Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 17, 2014 | Jun. 30, 2013 | |
Document Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'AMZN | ' | ' |
Entity Registrant Name | 'AMAZON COM INC | ' | ' |
Entity Central Index Key | '0001018724 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $102,548,300,912 |
Entity Common Stock, Shares Outstanding | ' | 459,264,535 | ' |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | $8,084 | $5,269 | $3,777 |
OPERATING ACTIVITIES: | ' | ' | ' |
Net income (loss) | 274 | -39 | 631 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ' | ' | ' |
Depreciation of property and equipment, including internal-use software and website development, and other amortization | 3,253 | 2,159 | 1,083 |
Stock-based compensation | 1,134 | 833 | 557 |
Other operating expense (income), net | 114 | 154 | 154 |
Losses (gains) on sales of marketable securities, net | 1 | -9 | -4 |
Other expense (income), net | 166 | 253 | -56 |
Deferred income taxes | -156 | -265 | 136 |
Excess tax benefits from stock-based compensation | -78 | -429 | -62 |
Changes in operating assets and liabilities: | ' | ' | ' |
Inventories | -1,410 | -999 | -1,777 |
Accounts receivable, net and other | -846 | -861 | -866 |
Accounts payable | 1,888 | 2,070 | 2,997 |
Accrued expenses and other | 736 | 1,038 | 1,067 |
Additions to unearned revenue | 2,691 | 1,796 | 1,064 |
Amortization of previously unearned revenue | -2,292 | -1,521 | -1,021 |
Net cash provided by (used in) operating activities | 5,475 | 4,180 | 3,903 |
INVESTING ACTIVITIES: | ' | ' | ' |
Purchases of property and equipment, including internal-use software and website development | -3,444 | -3,785 | -1,811 |
Acquisitions, net of cash acquired, and other | -312 | -745 | -705 |
Sales and maturities of marketable securities and other investments | 2,306 | 4,237 | 6,843 |
Purchases of marketable securities and other investments | -2,826 | -3,302 | -6,257 |
Net cash provided by (used in) investing activities | -4,276 | -3,595 | -1,930 |
FINANCING ACTIVITIES: | ' | ' | ' |
Excess tax benefits from stock-based compensation | 78 | 429 | 62 |
Common stock repurchased | 0 | -960 | -277 |
Proceeds from long-term debt and other | 394 | 3,378 | 177 |
Repayments of long-term debt, capital lease, and finance lease obligations | -1,011 | -588 | -444 |
Net cash provided by (used in) financing activities | -539 | 2,259 | -482 |
Foreign-currency effect on cash and cash equivalents | -86 | -29 | 1 |
Net increase (decrease) in cash and cash equivalents | 574 | 2,815 | 1,492 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 8,658 | 8,084 | 5,269 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' | ' |
Cash paid for interest on long-term debt | 97 | 31 | 14 |
Cash paid for income taxes (net of refunds) | 169 | 112 | 33 |
Assets Held under Capital Leases | ' | ' | ' |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' | ' |
Property and equipment acquired | 1,867 | 802 | 753 |
Assets Held under Build-To-Suit Leases | ' | ' | ' |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' | ' |
Property and equipment acquired | $877 | $29 | $259 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Net product sales | $60,903 | $51,733 | $42,000 | |||
Net services sales | 13,549 | 9,360 | 6,077 | |||
Total net sales | 74,452 | 61,093 | 48,077 | |||
Operating expenses | ' | ' | ' | |||
Cost of sales | 54,181 | 45,971 | 37,288 | |||
Fulfillment | 8,585 | [1] | 6,419 | [1] | 4,576 | [1] |
Marketing | 3,133 | [1] | 2,408 | [1] | 1,630 | [1] |
Technology and content | 6,565 | [1] | 4,564 | [1] | 2,909 | [1] |
General and administrative | 1,129 | [1] | 896 | [1] | 658 | [1] |
Other operating expense (income), net | 114 | 159 | 154 | |||
Total operating expenses | 73,707 | 60,417 | 47,215 | |||
Income from operations | 745 | 676 | 862 | |||
Interest income | 38 | 40 | 61 | |||
Interest expense | -141 | -92 | -65 | |||
Other income (expense), net | -136 | -80 | 76 | |||
Total non-operating income (expense) | -239 | -132 | 72 | |||
Income before income taxes | 506 | 544 | 934 | |||
Provision for income taxes | -161 | -428 | -291 | |||
Equity-method investment activity, net of tax | -71 | -155 | -12 | |||
Net income (loss) | $274 | ($39) | $631 | |||
Basic earnings per share (in usd per share) | $0.60 | ($0.09) | $1.39 | |||
Diluted earnings per share (in usd per share) | $0.59 | ($0.09) | $1.37 | |||
Weighted average shares used in computation of earnings per share: | ' | ' | ' | |||
Basic (in shares) | 457 | 453 | 453 | |||
Diluted (in shares) | 465 | 453 | 461 | |||
[1] | Includes stock-based compensation as follows: Fulfillment - 294, 212, 133; Marketing - 88, 61, 39; Technology and content - 603, 434, 292; General and administrative - 149, 126, 93 |
Consolidated_Statements_Of_Ope1
Consolidated Statements Of Operations (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fulfillment | ' | ' | ' |
Stock-based compensation | $294 | $212 | $133 |
Marketing | ' | ' | ' |
Stock-based compensation | 88 | 61 | 39 |
Technology and content | ' | ' | ' |
Stock-based compensation | 603 | 434 | 292 |
General and administrative | ' | ' | ' |
Stock-based compensation | $149 | $126 | $93 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income (loss) | $274 | ($39) | $631 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustments, net of tax of $(20), $(30), and $20 | 63 | 76 | -123 |
Net change in unrealized gains on available-for-sale securities: | ' | ' | ' |
Unrealized gains (losses), net of tax of $3, $(3), and $1 | -10 | 8 | -1 |
Reclassification adjustment for losses (gains) included in “Other income (expense), net,†net of tax of $(1), $3, and $1 | 1 | -7 | -2 |
Net unrealized gains (losses) on available-for-sale securities | -9 | 1 | -3 |
Total other comprehensive income (loss) | 54 | 77 | -126 |
Comprehensive income | $328 | $38 | $505 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Foreign currency translation adjustments, tax | ($20) | ($30) | $20 |
Unrealized gains (losses), tax | 3 | -3 | 1 |
Reclassification adjustment for losses (gains) included in other income (expense), net, tax | ($1) | $3 | $1 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $8,658 | $8,084 |
Marketable securities | 3,789 | 3,364 |
Inventories | 7,411 | 6,031 |
Accounts receivable, net and other | 4,767 | 3,817 |
Total current assets | 24,625 | 21,296 |
Property and equipment, net | 10,949 | 7,060 |
Goodwill | 2,655 | 2,552 |
Other assets | 1,930 | 1,647 |
Total assets | 40,159 | 32,555 |
Current liabilities: | ' | ' |
Accounts payable | 15,133 | 13,318 |
Accrued expenses and other | 6,688 | 4,892 |
Unearned revenue | 1,159 | 792 |
Total current liabilities | 22,980 | 19,002 |
Long-term debt | 3,191 | 3,084 |
Other long-term liabilities | 4,242 | 2,277 |
Commitments and contingencies | ' | ' |
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 - 483 and 478 Outstanding shares - 459 and 454 | 5 | 5 |
Treasury stock, at cost | -1,837 | -1,837 |
Additional paid-in capital | 9,573 | 8,347 |
Accumulated other comprehensive loss | -185 | -239 |
Retained earnings | 2,190 | 1,916 |
Total stockholders’ equity | 9,746 | 8,192 |
Total liabilities and stockholders’ equity | $40,159 | $32,555 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
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 | 483,000,000 | 478,000,000 |
Common stock, Outstanding shares | 459,000,000 | 454,000,000 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
In Millions | ||||||
Beginning Balance at Dec. 31, 2010 | $6,864 | $5 | ($600) | $6,325 | ($190) | $1,324 |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 451 | ' | ' | ' | ' |
Net income (loss) | 631 | ' | ' | ' | ' | 631 |
Other comprehensive income (loss) | -126 | ' | ' | ' | -126 | ' |
Exercise of common stock options (in shares) | ' | 5 | ' | ' | ' | ' |
Exercise of common stock options | 7 | ' | ' | 7 | ' | ' |
Repurchase of common stock (in shares) | ' | -1 | ' | ' | ' | ' |
Repurchase of common stock | -277 | ' | -277 | ' | ' | ' |
Excess tax benefits from stock-based compensation | 62 | ' | ' | 62 | ' | ' |
Stock-based compensation and issuance of employee benefit plan stock | 569 | ' | ' | 569 | ' | ' |
Issuance of common stock for acquisition activity | 27 | ' | ' | 27 | ' | ' |
Ending Balance at Dec. 31, 2011 | 7,757 | 5 | -877 | 6,990 | -316 | 1,955 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 455 | ' | ' | ' | ' |
Net income (loss) | -39 | ' | ' | ' | ' | -39 |
Other comprehensive income (loss) | 77 | ' | ' | ' | 77 | ' |
Exercise of common stock options (in shares) | ' | 4 | ' | ' | ' | ' |
Exercise of common stock options | 8 | ' | ' | 8 | ' | ' |
Repurchase of common stock (in shares) | ' | -5 | ' | ' | ' | ' |
Repurchase of common stock | -960 | ' | -960 | ' | ' | ' |
Excess tax benefits from stock-based compensation | 429 | ' | ' | 429 | ' | ' |
Stock-based compensation and issuance of employee benefit plan stock | 854 | ' | ' | 854 | ' | ' |
Issuance of common stock for acquisition activity | 66 | ' | ' | 66 | ' | ' |
Ending Balance at Dec. 31, 2012 | 8,192 | 5 | -1,837 | 8,347 | -239 | 1,916 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 454 | ' | ' | ' | ' |
Net income (loss) | 274 | ' | ' | ' | ' | 274 |
Other comprehensive income (loss) | 54 | ' | ' | ' | 54 | ' |
Exercise of common stock options (in shares) | ' | 5 | ' | ' | ' | ' |
Exercise of common stock options | 4 | ' | ' | 4 | ' | ' |
Repurchase of common stock (in shares) | ' | 0 | ' | ' | ' | ' |
Repurchase of common stock | 0 | ' | 0 | ' | ' | ' |
Excess tax benefits from stock-based compensation | 73 | ' | ' | 73 | ' | ' |
Stock-based compensation and issuance of employee benefit plan stock | 1,149 | ' | ' | 1,149 | ' | ' |
Ending Balance at Dec. 31, 2013 | $9,746 | $5 | ($1,837) | $9,573 | ($185) | $2,190 |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 459 | ' | ' | ' | ' |
Description_of_Business_and_Ac
Description of Business and Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Description of Business and Accounting Policies | ' | ||||||||
DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES | |||||||||
Description of Business | |||||||||
Amazon.com opened its virtual doors on the World Wide Web in July 1995. We seek to be Earth’s most customer-centric company. In each of our two geographic segments, we serve our primary customer sets, consisting of consumers, sellers, enterprises, and content creators. We serve consumers through our retail websites and focus on selection, price, and convenience. We also manufacture and sell electronic devices. We offer programs that enable sellers to sell their products on our websites and their own branded websites and to fulfill orders through us, and programs that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. We serve developers and enterprises of all sizes through AWS, which provides access to technology infrastructure that enables virtually any type of business. In addition, we provide services, such as advertising services and co-branded credit card agreements. | |||||||||
We have organized our operations into two segments: North America and International. See “Note 12—Segment Information.” | |||||||||
Prior Period Reclassifications | |||||||||
Certain prior period amounts have been reclassified to conform to the current period presentation. Unearned revenue is now presented separately on our consolidated balance sheets. | |||||||||
Principles of Consolidation | |||||||||
The consolidated financial statements include the accounts of Amazon.com, Inc., its wholly-owned subsidiaries, and those entities in which we have a variable interest and of which we are the primary beneficiary. Intercompany balances and transactions between consolidated entities are eliminated. | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, determining the selling price of products and services in multiple element revenue arrangements and determining the lives of these elements, incentive discount offers, sales returns, vendor funding, stock-based compensation forfeiture rates, income taxes, valuation and impairment of investments, inventory valuation and inventory purchase commitments, collectability of receivables, valuation of acquired intangibles and goodwill, depreciable lives of property and equipment, internal-use software, acquisition purchase price allocations, investments in equity interests, and contingencies. Actual results could differ materially from those estimates. | |||||||||
Earnings per Share | |||||||||
Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when we recognize a net loss, we exclude the impact of outstanding stock awards from the diluted loss per share calculation as their inclusion would have an antidilutive effect. | |||||||||
The following table shows the calculation of diluted shares (in millions): | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Shares used in computation of basic earnings per share | 457 | 453 | 453 | ||||||
Total dilutive effect of outstanding stock awards | 8 | — | 8 | ||||||
Shares used in computation of diluted earnings per share | 465 | 453 | 461 | ||||||
Revenue | |||||||||
We recognize revenue from product sales or services rendered when the following four criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable, and collectability is reasonably assured. Revenue arrangements with multiple deliverables are divided into separate units and revenue is allocated using estimated selling prices if we do not have vendor-specific objective evidence or third-party evidence of the selling prices of the deliverables. We allocate the arrangement price to each of the elements based on the estimated selling prices of each element. Estimated selling prices are management’s best estimates of the prices that we would charge our customers if we were to sell the standalone elements separately and include considerations of customer demand, prices charged by us and others for similar deliverables, and the price if largely based on costs. Sales of our Kindle device are considered arrangements with multiple deliverables, consisting of the device, 3G wireless access and delivery for some models, and software upgrades. The revenue related to the device, which is the substantial portion of the total sale price, and related costs are recognized upon delivery as cost of sales. Revenue related to 3G wireless access and delivery and software upgrades is amortized over the average life of the device. Sales of Amazon Prime memberships are considered arrangements with multiple deliverables, including shipping benefits, Prime Instant Video, and access to the Kindle Owners' Lending Library. The revenue related to the deliverables is amortized over the life of the membership according to the estimated delivery of services. Amazon Prime membership fees are allocated between product sales and services sales. Costs to deliver Amazon Prime benefits are recognized as cost of sales as incurred. | |||||||||
We evaluate whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. Generally, when we are primarily obligated in a transaction, are subject to inventory risk, have latitude in establishing prices and selecting suppliers, or have several but not all of these indicators, revenue is recorded at the gross sale price. We generally record the net amounts as commissions earned if we are not primarily obligated and do not have latitude in establishing prices. Such amounts earned are determined using a fixed percentage, a fixed-payment schedule, or a combination of the two. | |||||||||
Product sales represent revenue from the sale of products and related shipping fees and digital content where we are the seller of record. Product sales and shipping revenues, net of promotional discounts, rebates, and return allowances, are recorded when the products are shipped and title passes to customers. Kindle devices sold through retailers are recognized at the point of sale to consumers. Retail sales to customers are made pursuant to a sales contract that provides for transfer of both title and risk of loss upon our delivery to the carrier. | |||||||||
Services sales represent third-party seller fees earned (including commissions) and related shipping fees, and non-retail activities such as AWS, advertising services, and our co-branded credit card agreements. Services sales, net of promotional discounts and return allowances, are recognized when services have been rendered. | |||||||||
Return allowances, which reduce revenue, are estimated using historical experience. Allowance for returns was $167 million, $198 million, and $155 million as of December 31, 2013, 2012, and 2011. Additions to the allowance were $907 million, $702 million, and $542 million, and deductions to the allowance were $938 million, $659 million, and $490 million as of December 31, 2013, 2012, and 2011. Revenue from product sales and services rendered is recorded net of sales and consumption taxes. Additionally, we periodically provide incentive offers to our customers to encourage purchases. Such offers include current discount offers, such as percentage discounts off current purchases, inducement offers, such as offers for future discounts subject to a minimum current purchase, and other similar offers. Current discount offers, when accepted by our customers, are treated as a reduction to the purchase price of the related transaction, while inducement offers, when accepted by our customers, are treated as a reduction to purchase price based on estimated future redemption rates. Redemption rates are estimated using our historical experience for similar inducement offers. Current discount offers and inducement offers are presented as a net amount in “Total net sales.” | |||||||||
Cost of Sales | |||||||||
Cost of sales consists of the purchase price of consumer products and digital content where we are the seller of record, inbound and outbound shipping charges, and packaging supplies. Shipping charges to receive products from our suppliers are included in our inventory, and recognized as cost of sales upon sale of products to our customers. Payment processing and related transaction costs, including those associated with seller transactions, are classified in “Fulfillment” on our consolidated statements of operations. | |||||||||
Vendor Agreements | |||||||||
We have agreements with our vendors to receive funds for cooperative marketing efforts, promotions, and volume rebates. We generally consider amounts received from vendors to be a reduction of the prices we pay for their goods or services, and therefore record those amounts as a reduction of the cost of inventory or cost of services. Vendor rebates are typically dependent upon reaching minimum purchase thresholds. We evaluate the likelihood of reaching purchase thresholds using past experience and current year forecasts. When volume rebates can be reasonably estimated, we record a portion of the rebate as we make progress towards the purchase threshold. | |||||||||
When we receive direct reimbursements for costs incurred by us in advertising the vendor’s product or service, the amount we receive is recorded as an offset to “Marketing” on our consolidated statements of operations. | |||||||||
Fulfillment | |||||||||
Fulfillment costs represent those costs incurred in operating and staffing our fulfillment and customer service centers, including costs attributable to buying, receiving, inspecting, and warehousing inventories; picking, packaging, and preparing customer orders for shipment; payment processing and related transaction costs, including costs associated with our guarantee for certain seller transactions; responding to inquiries from customers; and supply chain management for our manufactured electronic devices. Fulfillment costs also include amounts paid to third parties that assist us in fulfillment and customer service operations. | |||||||||
Marketing | |||||||||
Marketing costs consist primarily of targeted online advertising, television advertising, public relations expenditures, and payroll and related expenses for personnel engaged in marketing, business development, and selling activities. We pay commissions to participants in our Associates program when their customer referrals result in product sales and classify such costs as “Marketing” on our consolidated statements of operations. We also participate in cooperative advertising arrangements with certain of our vendors, and other third parties. | |||||||||
Advertising and other promotional costs are expensed as incurred and were $2.4 billion, $2.0 billion, and $1.4 billion in 2013, 2012, and 2011. Prepaid advertising costs were not significant as of December 31, 2013 and 2012. | |||||||||
Technology and Content | |||||||||
Technology and content expenses consist principally of technology infrastructure expenses and payroll and related expenses for employees involved in application, product, and platform development, category expansion, editorial content, buying, merchandising selection, systems support, and initiatives to expand our ecosystem of digital products and services, as well as costs associated with AWS. | |||||||||
Technology and content costs are expensed as incurred, except for certain costs relating to the development of internal-use software and website development, including software used to upgrade and enhance our websites and applications supporting our business, which are capitalized and amortized over two years. | |||||||||
General and Administrative | |||||||||
General and administrative expenses consist of payroll and related expenses for employees involved in general corporate functions, including accounting, finance, tax, legal, and human resources, among others; costs associated with use by these functions of facilities and equipment, such as depreciation expense and rent; professional fees and litigation costs; and other general corporate costs. | |||||||||
Stock-Based Compensation | |||||||||
Compensation cost for all stock awards expected to vest is measured at fair value on the date of grant and recognized over the service period. The fair value of restricted stock units is determined based on the number of shares granted and the quoted price of our common stock. Such value is recognized as expense over the service period, net of estimated forfeitures, using the accelerated method. The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. We consider many factors when estimating expected forfeitures, including employee class, economic environment, and historical experience. | |||||||||
Other Operating Expense (Income), Net | |||||||||
Other operating expense (income), net, consists primarily of intangible asset amortization expense and expenses related to legal settlements. | |||||||||
Other Income (Expense), Net | |||||||||
Other income (expense), net, consists primarily of foreign currency gains and losses of $(137) million, $(95) million, and $64 million in 2013, 2012, and 2011, and realized gains and losses on marketable securities sales of $(1) million, $10 million, and $4 million in 2013, 2012, and 2011. | |||||||||
Income Taxes | |||||||||
Income tax expense includes U.S. and international income taxes. Except as required under U.S. tax law, we do not provide for U.S. taxes on our undistributed earnings of foreign subsidiaries that have not been previously taxed since we intend to invest such undistributed earnings indefinitely outside of the U.S. If our intent changes or if these funds are needed for our U.S. operations, we would be required to accrue or pay U.S. taxes on some or all of these undistributed earnings. Undistributed earnings of foreign subsidiaries that are indefinitely invested outside of the U.S were $2.5 billion as of December 31, 2013. Determination of the unrecognized deferred tax liability that would be incurred if such amounts were repatriated is not practicable. | |||||||||
Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. | |||||||||
Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent we believe a portion will not be realized. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent cumulative earnings experience and expectations of future taxable income and capital gains by taxing jurisdiction, the carry-forward periods available to us for tax reporting purposes, and other relevant factors. We allocate our valuation allowance to current and long-term deferred tax assets on a pro-rata basis. | |||||||||
We utilize a two-step approach to recognizing and measuring uncertain income tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. We include interest and penalties related to our tax contingencies in income tax expense. | |||||||||
Fair Value of Financial Instruments | |||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: | |||||||||
Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. | |||||||||
Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | |||||||||
Level 3—Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. | |||||||||
We measure the fair value of money market funds and equity securities based on quoted prices in active markets for identical assets or liabilities. All other financial instruments were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. We did not hold any cash, cash equivalents, or marketable securities categorized as Level 3 as of December 31, 2013, or December 31, 2012. | |||||||||
Cash and Cash Equivalents | |||||||||
We classify all highly liquid instruments with an original maturity of three months or less at the time of purchase as cash equivalents. | |||||||||
Inventories | |||||||||
Inventories, consisting of products available for sale, are primarily accounted for using the FIFO method, and are valued at the lower of cost or market value. This valuation requires us to make judgments, based on currently-available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. | |||||||||
We provide Fulfillment by Amazon services in connection with certain of our sellers’ programs. Third-party sellers maintain ownership of their inventory, regardless of whether fulfillment is provided by us or the third-party sellers, and therefore these products are not included in our inventories. | |||||||||
Accounts Receivable, Net and Other | |||||||||
Included in “Accounts receivable, net and other” on our consolidated balance sheets are amounts primarily related to vendor and customer receivables. As of December 31, 2013 and 2012, vendor receivables, net, were $1.3 billion and $1.1 billion, and customer receivables, net, were $1.7 billion and $1.5 billion. | |||||||||
Allowance for Doubtful Accounts | |||||||||
We estimate losses on receivables based on known troubled accounts and historical experience of losses incurred. Receivables are considered impaired and written-off when it is probable that all contractual payments due will not be collected in accordance with the terms of the agreement. The allowance for doubtful accounts was $153 million, $116 million, and $82 million as of December 31, 2013, 2012, and 2011. Additions to the allowance were $172 million, $136 million, and $87 million, and deductions to the allowance were $135 million, $102 million, and $82 million as of December 31, 2013, 2012, and 2011. | |||||||||
Internal-use Software and Website Development | |||||||||
Costs incurred to develop software for internal use and our websites are capitalized and amortized over the estimated useful life of the software. Costs related to design or maintenance of internal-use software and website development are expensed as incurred. For the years ended 2013, 2012, and 2011, we capitalized $581 million (including $87 million of stock-based compensation), $454 million (including $74 million of stock-based compensation), and $307 million (including $51 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $451 million, $327 million, and $236 million for 2013, 2012, and 2011. | |||||||||
Property and Equipment, Net | |||||||||
Property and equipment are stated at cost less accumulated depreciation. Property includes buildings and land that we own, along with property we have acquired under build-to-suit, financing, and capital lease arrangements. Equipment includes assets such as furniture and fixtures, heavy equipment, servers and networking equipment, and internal-use software and website development. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets (generally the lesser of 40 years or the remaining life of the underlying building, two years for assets such as internal-use software, three years for our servers, five years for networking equipment, five years for furniture and fixtures, and ten years for heavy equipment). Depreciation expense is classified within the corresponding operating expense categories on our consolidated statements of operations. | |||||||||
Leases and Asset Retirement Obligations | |||||||||
We categorize leases at their inception as either operating or capital leases. On certain of our lease agreements, we may receive rent holidays and other incentives. We recognize lease costs on a straight-line basis without regard to deferred payment terms, such as rent holidays that defer the commencement date of required payments. Additionally, incentives we receive are treated as a reduction of our costs over the term of the agreement. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the non-cancellable term of the lease. | |||||||||
We establish assets and liabilities for the estimated construction costs incurred under build-to-suit lease arrangements to the extent we are involved in the construction of structural improvements or take construction risk prior to commencement of a lease. Upon occupancy of facilities under build-to-suit leases, we assess whether these arrangements qualify for sales recognition under the sale-leaseback accounting guidance. If we continue to be the deemed owner, the facilities are accounted for as financing leases. | |||||||||
We establish assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated retirement costs. | |||||||||
Goodwill | |||||||||
We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value or qualitative factors indicate that it is more likely than not that goodwill is impaired, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. We estimate the fair value of the reporting units using discounted cash flows. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on expected category expansion, pricing, market segment share, and general economic conditions. | |||||||||
We conduct our annual impairment test as of October 1 of each year, and have determined there to be no impairment for any of the periods presented. There were no triggering events identified from the date of our assessment through December 31, 2013 that would require an update to our annual impairment test. See “Note 4—Acquisitions, Goodwill, and Acquired Intangible Assets.” | |||||||||
Other Assets | |||||||||
Included in “Other assets” on our consolidated balance sheets are amounts primarily related to acquired intangible assets, net of amortization; digital video content, net of amortization; long-term deferred tax assets; certain equity investments; marketable securities restricted for longer than one year, the majority of which are attributable to collateralization of bank guarantees and debt related to our international operations; and intellectual property rights, net of amortization. | |||||||||
Content Costs | |||||||||
We obtain digital video content through licensing agreements that have a wide range of licensing provisions and generally have terms from one to five years with fixed payment schedules. When the license fee for a specific movie or television title is determinable or reasonably estimable and available for streaming, we recognize an asset representing the fee per title and a corresponding liability for the amounts owed. We relieve the liability as payments are made and we amortize the asset as cost of sales on a straight-line basis over each title’s contractual window of availability, which typically ranges from six months to five years. If we are unable to reasonably estimate the cost per title, no asset or liability is recorded and licensing costs are expensed as incurred. | |||||||||
Investments | |||||||||
We generally invest our excess cash in investment grade short- to intermediate-term fixed income securities and AAA-rated money market funds. Such investments are included in “Cash and cash equivalents,” or “Marketable securities” on the accompanying consolidated balance sheets, classified as available-for-sale, and reported at fair value with unrealized gains and losses included in “Accumulated other comprehensive loss.” | |||||||||
Equity investments are accounted for using the equity method of accounting if the investment gives us the ability to exercise significant influence, but not control, over an investee. The total of our investments in equity-method investees, including identifiable intangible assets, deferred tax liabilities, and goodwill, is included within “Other assets” on our consolidated balance sheets. Our share of the earnings or losses as reported by equity-method investees, amortization of the related intangible assets, and related gains or losses, if any, are classified as “Equity-method investment activity, net of tax” on our consolidated statements of operations. Our share of the net income or loss of our equity-method investees includes operating and non-operating gains and charges, which can have a significant impact on our reported equity-method investment activity and the carrying value of those investments. In the event that net losses of the investee reduce our equity-method investment carrying amount to zero, additional net losses may be recorded if other investments in the investee, not accounted for under the equity method, are at-risk even if we have not committed to provide financial support to the investee. We regularly evaluate these investments, which are not carried at fair value, for other-than-temporary impairment. We also consider whether our equity-method investments generate sufficient cash flows from their operating or financing activities to meet their obligations and repay their liabilities when they come due. | |||||||||
We record purchases, including incremental purchases, of shares in equity-method investees at cost. Reductions in our ownership percentage of an investee, including through dilution, are generally valued at fair value, with the difference between fair value and our recorded cost reflected as a gain or loss in our equity-method investment activity. In the event we no longer have the ability to exercise significant influence over an equity-method investee, we would discontinue accounting for the investment under the equity method. | |||||||||
Equity investments without readily determinable fair values for which we do not have the ability to exercise significant influence are accounted for using the cost method of accounting and classified as “Other assets” on our consolidated balance sheets. Under the cost method, investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions, and additional investments. | |||||||||
Equity investments that have readily determinable fair values are classified as available-for-sale and are included in “Marketable securities” in our consolidated balance sheets and are recorded at fair value with unrealized gains and losses, net of tax, included in “Accumulated other comprehensive loss.” | |||||||||
We periodically evaluate whether declines in fair values of our investments below their book value are other-than-temporary. This evaluation consists of several qualitative and quantitative factors regarding the severity and duration of the unrealized loss as well as our ability and intent to hold the investment until a forecasted recovery occurs. Additionally, we assess whether we have plans to sell the security or it is more likely than not we will be required to sell any investment before recovery of its amortized cost basis. Factors considered include quoted market prices; recent financial results and operating trends; implied values from any recent transactions or offers of investee securities; credit quality of debt instrument issuers; other publicly available information that may affect the value of our investments; duration and severity of the decline in value; and our strategy and intentions for holding the investment. | |||||||||
Long-Lived Assets | |||||||||
Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. | |||||||||
For long-lived assets used in operations, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and estimated fair value. Long-lived assets are considered held for sale when certain criteria are met, including when management has committed to a plan to sell the asset, the asset is available for sale in its immediate condition, and the sale is probable within one year of the reporting date. Assets held for sale are reported at the lower of cost or fair value less costs to sell. Assets held for sale were not significant as of December 31, 2013 or 2012. | |||||||||
Accrued Expenses and Other | |||||||||
Included in “Accrued expenses and other” as of December 31, 2013 and 2012 were liabilities of $1.4 billion and $1.1 billion for unredeemed gift cards. We reduce the liability for a gift card when redeemed by a customer. If a gift card is not redeemed, we recognize revenue when it expires or when the likelihood of its redemption becomes remote, generally two years from the date of issuance. | |||||||||
Unearned Revenue | |||||||||
Unearned revenue is recorded when payments are received in advance of performing our service obligations and is recognized over the service period. Unearned revenue primarily relates to Amazon Prime memberships and AWS. | |||||||||
Foreign Currency | |||||||||
We have internationally-focused websites for the United Kingdom, Germany, France, Japan, Canada, China, Italy, Spain, Brazil, India, Mexico, and Australia. Net sales generated from these websites, as well as most of the related expenses directly incurred from those operations, are denominated in local functional currencies. The functional currency of our subsidiaries that either operate or support these websites is the same as the local currency. Assets and liabilities of these subsidiaries are translated into U.S. Dollars at period-end exchange rates, and revenues and expenses are translated at average rates prevailing throughout the period. Translation adjustments are included in “Accumulated other comprehensive loss,” a separate component of stockholders’ equity, and in the “Foreign-currency effect on cash and cash equivalents,” on our consolidated statements of cash flows. Transaction gains and losses including intercompany transactions denominated in a currency other than the functional currency of the entity involved are included in “Other income (expense), net” on our consolidated statements of operations. In connection with the settlement and remeasurement of intercompany balances, we recorded gains (losses) of $(84) million, $(95) million, and $70 million in 2013, 2012, and 2011. |
Cash_Cash_Equivalents_and_Mark
Cash, Cash Equivalents, and Marketable Securities | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Cash, Cash Equivalents, and Marketable Securities | ' | |||||||||||||||
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES | ||||||||||||||||
As of December 31, 2013 and 2012, our cash, cash equivalents, and marketable securities primarily consisted of cash, U.S. and foreign government and agency securities, AAA-rated money market funds, and other investment grade securities. Cash equivalents and marketable securities are recorded at fair value. The following table summarizes, by major security type, our cash, cash equivalents, and marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in millions): | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Cost or | Gross | Gross | Total | |||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Cash | $ | 3,008 | $ | — | $ | — | $ | 3,008 | ||||||||
Level 1 securities: | ||||||||||||||||
Money market funds | 5,914 | — | — | 5,914 | ||||||||||||
Equity securities | 3 | 1 | — | 4 | ||||||||||||
Level 2 securities: | ||||||||||||||||
Foreign government and agency securities | 757 | 2 | (1 | ) | 758 | |||||||||||
U.S. government and agency securities | 2,224 | 1 | (3 | ) | 2,222 | |||||||||||
Corporate debt securities | 739 | 3 | (1 | ) | 741 | |||||||||||
Asset-backed securities | 65 | — | — | 65 | ||||||||||||
Other fixed income securities | 36 | — | — | 36 | ||||||||||||
$ | 12,746 | $ | 7 | $ | (5 | ) | $ | 12,748 | ||||||||
Less: Restricted cash, cash equivalents, and marketable securities (1) | (301 | ) | ||||||||||||||
Total cash, cash equivalents, and marketable securities | $ | 12,447 | ||||||||||||||
December 31, 2012 | ||||||||||||||||
Cost or | Gross | Gross | Total | |||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Cash | $ | 2,595 | $ | — | $ | — | $ | 2,595 | ||||||||
Level 1 securities: | ||||||||||||||||
Money market funds | 5,561 | — | — | 5,561 | ||||||||||||
Equity securities | 2 | — | — | 2 | ||||||||||||
Level 2 securities: | ||||||||||||||||
Foreign government and agency securities | 763 | 9 | — | 772 | ||||||||||||
U.S. government and agency securities | 1,809 | 3 | (2 | ) | 1,810 | |||||||||||
Corporate debt securities | 719 | 6 | — | 725 | ||||||||||||
Asset-backed securities | 49 | — | — | 49 | ||||||||||||
Other fixed income securities | 33 | — | — | 33 | ||||||||||||
$ | 11,531 | $ | 18 | $ | (2 | ) | $ | 11,547 | ||||||||
Less: Restricted cash, cash equivalents, and marketable securities (1) | (99 | ) | ||||||||||||||
Total cash, cash equivalents, and marketable securities | $ | 11,448 | ||||||||||||||
___________________ | ||||||||||||||||
-1 | We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable securities as collateral for standby and trade letters of credit, guarantees, debt, and real estate lease agreements. We classify cash 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 8—Commitments and Contingencies.” | |||||||||||||||
The following table summarizes gross gains and gross losses realized on sales of available-for-sale marketable securities (in millions): | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Realized gains | $ | 6 | $ | 20 | $ | 15 | ||||||||||
Realized losses | (7 | ) | 10 | 11 | ||||||||||||
The following table summarizes the contractual maturities of our cash equivalent and marketable fixed income securities as of December 31, 2013 (in millions): | ||||||||||||||||
Amortized | Estimated | |||||||||||||||
Cost | Fair Value | |||||||||||||||
Due within one year | $ | 7,226 | $ | 7,227 | ||||||||||||
Due after one year through five years | 2,115 | 2,118 | ||||||||||||||
Due after five years through ten years | 133 | 132 | ||||||||||||||
Due after ten years | 261 | 259 | ||||||||||||||
$ | 9,735 | $ | 9,736 | |||||||||||||
Actual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
PROPERTY AND EQUIPMENT | ||||||||
Property and equipment, at cost, consisted of the following (in millions): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Gross property and equipment (1): | ||||||||
Land and buildings | $ | 4,584 | $ | 2,966 | ||||
Equipment and internal-use software (2) | 9,274 | 6,228 | ||||||
Other corporate assets | 231 | 174 | ||||||
Construction in progress | 720 | 214 | ||||||
Gross property and equipment | 14,809 | 9,582 | ||||||
Total accumulated depreciation (1) | 3,860 | 2,522 | ||||||
Total property and equipment, net | $ | 10,949 | $ | 7,060 | ||||
___________________ | ||||||||
-1 | Excludes the original cost and accumulated depreciation of fully-depreciated assets. | |||||||
-2 | Includes internal-use software of $1.1 billion and $866 million as of December 31, 2013 and 2012. | |||||||
In December 2012, we acquired our corporate headquarters for $1.2 billion consisting of land and 11 buildings that were previously accounted for as financing leases. The acquired building assets will be depreciated over their estimated useful lives of 40 years. We also acquired three city blocks of land for the expansion of our corporate headquarters for approximately $210 million. | ||||||||
Depreciation expense on property and equipment was $2.5 billion, $1.7 billion, and $1.0 billion, which includes amortization of property and equipment acquired under capital lease obligations of $826 million, $510 million, and $335 million for 2013, 2012, and 2011. Gross assets remaining under capital leases were $4.2 billion and $2.3 billion as of December 31, 2013 and 2012. Accumulated depreciation associated with capital leases was $1.9 billion and $1.1 billion as of December 31, 2013 and 2012. Cash paid for interest on capital leases was $41 million, $51 million, and $44 million for 2013, 2012, and 2011. | ||||||||
We capitalize construction in progress and record a corresponding long-term liability for build-to-suit lease agreements where we are considered the owner, for accounting purposes, during the construction period. For buildings under build-to-suit lease arrangements where we have taken occupancy, which do not qualify for sales recognition under the sale-leaseback accounting guidance, we determined that we continue to be the deemed owner of these buildings. This is principally due to our significant investment in tenant improvements. As a result, the buildings are being depreciated over the shorter of their useful lives or the related leases’ terms. Additionally, certain build-to-suit lease arrangements and financing leases provide purchase options. Upon occupancy, the long-term construction obligations are considered long-term financing lease obligations with amounts payable during the next 12 months recorded as “Accrued expenses and other.” Gross assets remaining under financing leases were $578 million and $9 million as of December 31, 2013 and 2012. Accumulated depreciation associated with financing leases was $22 million and $5 million as of December 31, 2013 and 2012. |
Acquisitions_Goodwill_and_Acqu
Acquisitions, Goodwill, and Acquired Intangible Assets | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||||||||||||
Acquisitions, Goodwill, and Acquired Intangible Assets | ' | |||||||||||||||||||||||||
ACQUISITIONS, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS | ||||||||||||||||||||||||||
2013 Acquisition Activity | ||||||||||||||||||||||||||
In 2013, we acquired several companies in cash transactions for an aggregate purchase price of $195 million, resulting in goodwill of $103 million and acquired intangible assets of $83 million. The primary reasons for these acquisitions were to expand our customer base and sales channels and to obtain certain technologies to be used in product development. We determined the estimated fair value of identifiable intangible assets acquired primarily by using the income and cost approaches. These assets are included within “Other assets” on our consolidated balance sheets and are being amortized to operating expenses on a straight-line or accelerated basis over their estimated useful lives. Acquisition-related costs were expensed as incurred and were not significant. | ||||||||||||||||||||||||||
Pro forma results of operations have not been presented because the effects of these acquisitions, individually and in the aggregate, were not material to our consolidated results of operations. | ||||||||||||||||||||||||||
2012 Acquisition Activity | ||||||||||||||||||||||||||
In May 2012, we acquired Kiva Systems, Inc. (“Kiva”) for a purchase price of $678 million. The primary reason for this acquisition was to improve fulfillment center productivity. Acquisition-related costs were expensed as incurred and were not significant. The aggregate purchase price of this acquisition was allocated as follows (in millions): | ||||||||||||||||||||||||||
Purchase Price | ||||||||||||||||||||||||||
Cash paid, net of cash acquired | $ | 613 | ||||||||||||||||||||||||
Stock options assumed | 65 | |||||||||||||||||||||||||
$ | 678 | |||||||||||||||||||||||||
Allocation | ||||||||||||||||||||||||||
Goodwill | $ | 560 | ||||||||||||||||||||||||
Intangible assets (1): | ||||||||||||||||||||||||||
Marketing-related | 5 | |||||||||||||||||||||||||
Contract-based | 3 | |||||||||||||||||||||||||
Technology-based | 168 | |||||||||||||||||||||||||
Customer-related | 17 | |||||||||||||||||||||||||
193 | ||||||||||||||||||||||||||
Property and equipment | 9 | |||||||||||||||||||||||||
Deferred tax assets | 34 | |||||||||||||||||||||||||
Other assets acquired | 41 | |||||||||||||||||||||||||
Deferred tax liabilities | (81 | ) | ||||||||||||||||||||||||
Other liabilities assumed | (78 | ) | ||||||||||||||||||||||||
$ | 678 | |||||||||||||||||||||||||
___________________ | ||||||||||||||||||||||||||
-1 | Acquired intangible assets have estimated useful lives of between four and 10 years, with a weighted-average amortization period of five years. | |||||||||||||||||||||||||
The fair value of assumed stock options was estimated using the Black-Scholes model. We determined the estimated fair value of identifiable intangible assets acquired primarily by using the income and cost approaches. These assets are included within “Other assets” on our consolidated balance sheets and are being amortized to operating expenses on a straight-line or accelerated basis over their estimated useful lives. | ||||||||||||||||||||||||||
Pro Forma Financial Information – 2012 Acquisition Activity (unaudited) | ||||||||||||||||||||||||||
Kiva was consolidated into our financial statements starting on its acquisition date. The net sales and operating loss of Kiva recorded in our consolidated statement of operations from its acquisition date through December 31, 2012, were $61 million and $(62) million. The following pro forma financial information presents our results as if the Kiva acquisition had occurred at the beginning of 2011 (in millions): | ||||||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||
Net sales | $ | 61,118 | $ | 48,157 | ||||||||||||||||||||||
Net income (loss) | (2 | ) | 499 | |||||||||||||||||||||||
2011 Acquisition Activity | ||||||||||||||||||||||||||
In 2011, we acquired certain companies for an aggregate purchase price of $771 million. The primary reasons for these acquisitions, none of which was individually material to our consolidated financial statements, were to expand our customer base and sales channels, including our consumer channels and subscription entertainment services. Acquisition-related costs were expensed as incurred and were not significant. The aggregate purchase price of these acquisitions was allocated as follows (in millions): | ||||||||||||||||||||||||||
Purchase Price | ||||||||||||||||||||||||||
Cash paid, net of cash acquired | $ | 637 | ||||||||||||||||||||||||
Existing equity interest | 89 | |||||||||||||||||||||||||
Indemnification holdbacks | 25 | |||||||||||||||||||||||||
Stock options assumed | 20 | |||||||||||||||||||||||||
$ | 771 | |||||||||||||||||||||||||
Allocation | ||||||||||||||||||||||||||
Goodwill | $ | 615 | ||||||||||||||||||||||||
Intangible assets (1): | ||||||||||||||||||||||||||
Marketing-related | 130 | |||||||||||||||||||||||||
Customer-related | 94 | |||||||||||||||||||||||||
Contract-based | 6 | |||||||||||||||||||||||||
230 | ||||||||||||||||||||||||||
Property and equipment | 119 | |||||||||||||||||||||||||
Deferred tax assets | 49 | |||||||||||||||||||||||||
Other assets acquired | 68 | |||||||||||||||||||||||||
Accounts payable | (65 | ) | ||||||||||||||||||||||||
Debt | (70 | ) | ||||||||||||||||||||||||
Deferred tax liabilities | (75 | ) | ||||||||||||||||||||||||
Other liabilities assumed | (100 | ) | ||||||||||||||||||||||||
$ | 771 | |||||||||||||||||||||||||
___________________ | ||||||||||||||||||||||||||
-1 | Amortization periods range from two to 10 years, with a weighted-average amortization period of eight years. | |||||||||||||||||||||||||
In addition to cash consideration and the fair value of vested stock options, the aggregate purchase price included the estimated fair value of our previous, noncontrolling interest in one of the acquired companies. We remeasured this equity interest to fair value at the acquisition date and recognized a non-cash gain of $6 million in “Equity-method investment activity, net of tax,” in our 2011 consolidated statement of operations. The fair value of assumed stock options was estimated using the Black-Scholes model. We determined the estimated fair value of identifiable intangible assets acquired primarily by using the income and cost approaches. Purchased identifiable intangible assets are included within “Other assets” on our consolidated balance sheets and are being amortized to operating expenses on a straight-line or accelerated basis over their estimated useful lives. | ||||||||||||||||||||||||||
Pro forma results of operations have not been presented because the effects of these acquisitions, individually and in the aggregate, were not material to our consolidated results of operations. | ||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||
The goodwill of the acquired companies is generally not deductible for tax purposes and is primarily related to expected improvements in fulfillment center productivity and sales growth from future product offerings and customers, together with certain intangible assets that do not qualify for separate recognition. | ||||||||||||||||||||||||||
The following summarizes our goodwill activity in 2013 and 2012 by segment (in millions): | ||||||||||||||||||||||||||
North | International | Consolidated | ||||||||||||||||||||||||
America | ||||||||||||||||||||||||||
Goodwill - January 1, 2012 | $ | 1,533 | $ | 422 | $ | 1,955 | ||||||||||||||||||||
New acquisitions (1) | 403 | 184 | 587 | |||||||||||||||||||||||
Other adjustments (2) | 1 | 9 | 10 | |||||||||||||||||||||||
Goodwill - December 31, 2012 | 1,937 | 615 | 2,552 | |||||||||||||||||||||||
New acquisitions | 99 | 4 | 103 | |||||||||||||||||||||||
Other adjustments (2) | (3 | ) | 3 | — | ||||||||||||||||||||||
Goodwill - December 31, 2013 | $ | 2,033 | $ | 622 | $ | 2,655 | ||||||||||||||||||||
___________________ | ||||||||||||||||||||||||||
-1 | Primarily consists of the goodwill of Kiva. | |||||||||||||||||||||||||
-2 | Primarily consists of changes in foreign exchange. | |||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||||
Acquired intangible assets, included within “Other assets” on our consolidated balance sheets, consist of the following (in millions): | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Weighted | Acquired | Accumulated | Acquired | Acquired | Accumulated | Acquired | ||||||||||||||||||||
Average Life | Intangibles, | Amortization (1) | Intangibles, | Intangibles, | Amortization (1) | Intangibles, | ||||||||||||||||||||
Remaining | Gross (1) | Net | Gross (1) | Net | ||||||||||||||||||||||
Marketing-related | 6.3 | $ | 429 | $ | (156 | ) | $ | 273 | $ | 422 | $ | (113 | ) | $ | 309 | |||||||||||
Contract-based | 3 | 173 | (110 | ) | 63 | 177 | (89 | ) | 88 | |||||||||||||||||
Technology- and content-based | 4.4 | 278 | (74 | ) | 204 | 231 | (30 | ) | 201 | |||||||||||||||||
Customer-related | 2.4 | 368 | (263 | ) | 105 | 332 | (205 | ) | 127 | |||||||||||||||||
Acquired intangibles (2) | 4.2 | $ | 1,248 | $ | (603 | ) | $ | 645 | $ | 1,162 | $ | (437 | ) | $ | 725 | |||||||||||
___________________ | ||||||||||||||||||||||||||
-1 | Excludes the original cost and accumulated amortization of fully-amortized intangibles. | |||||||||||||||||||||||||
-2 | Intangible assets have estimated useful lives of between one and 10 years. | |||||||||||||||||||||||||
Amortization expense for acquired intangibles was $168 million, $163 million, and $149 million in 2013, 2012, and 2011. Expected future amortization expense of acquired intangible assets as of December 31, 2013 is as follows (in millions): | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2014 | $ | 157 | ||||||||||||||||||||||||
2015 | 140 | |||||||||||||||||||||||||
2016 | 121 | |||||||||||||||||||||||||
2017 | 101 | |||||||||||||||||||||||||
2018 | 54 | |||||||||||||||||||||||||
Thereafter | 72 | |||||||||||||||||||||||||
$ | 645 | |||||||||||||||||||||||||
EquityMethod_Investments
Equity-Method Investments | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||
Equity-Method Investments | ' | |||||||||||
EQUITY-METHOD INVESTMENTS | ||||||||||||
LivingSocial’s summarized condensed financial information, as provided to us by LivingSocial, is as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Statement of Operations: | ||||||||||||
Revenue | $ | 399 | $ | 455 | $ | 238 | ||||||
Operating expense | 461 | 666 | 613 | |||||||||
Impairment charge | 41 | 579 | — | |||||||||
Operating loss from continuing operations | (103 | ) | (790 | ) | (375 | ) | ||||||
Net loss from continuing operations (1) | (101 | ) | (532 | ) | (417 | ) | ||||||
Loss from discontinued operations, net of tax (2) | (82 | ) | (121 | ) | (82 | ) | ||||||
Net loss | $ | (183 | ) | $ | (653 | ) | $ | (499 | ) | |||
___________________ | ||||||||||||
-1 | The difference between operating loss from continuing operations and net loss from continuing operations for 2012 is primarily due to non-operating, non-cash gains on previously held equity positions in companies that LivingSocial acquired during Q1 2012. | |||||||||||
-2 | In November 2013, LivingSocial announced that it had reached an agreement to sell its Korean operations for $260 million. The transaction closed in January 2014. The statement of operations information above has been recast to present its Korean operations as discontinued operations. | |||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Balance Sheet: | ||||||||||||
Current assets | $ | 81 | $ | 74 | ||||||||
Non-current assets | 152 | 216 | ||||||||||
Current liabilities | 298 | 336 | ||||||||||
Non-current liabilities | 36 | 14 | ||||||||||
Redeemable stock | 315 | 205 | ||||||||||
Balance sheet financial information as of December 31, 2013 includes $146 million in assets and $122 million in liabilities that LivingSocial has classified as held for sale for its Korean operations. | ||||||||||||
As of December 31, 2013, the book value of our equity-method investment in LivingSocial has been reduced to zero due to our recognition of equity-method losses over time. In Q1 2013 we made a $56 million investment in LivingSocial that we have recorded as a cost method investment, bringing our total investment in LivingSocial to approximately 31% of voting stock. In Q4 2013, we recognized additional equity-method losses and reduced this cost method investment to $38 million as of December 31, 2013. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
LONG-TERM DEBT | ||||||||
In November 2012, we issued $3.0 billion of unsecured senior notes in three tranches as described in the table below (collectively, the “Notes”). As of December 31, 2013 and 2012, the unamortized discount on the Notes was $23 million and $27 million. We also have other long-term debt with a carrying amount, including the current portion, of $967 million and $691 million as of December 31, 2013 and 2012. The face value of our total long-term debt obligations is as follows (in millions): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
0.65% Notes due on November 27, 2015 | $ | 750 | $ | 750 | ||||
1.20% Notes due on November 29, 2017 | 1,000 | 1,000 | ||||||
2.50% Notes due on November 29, 2022 | 1,250 | 1,250 | ||||||
Other long-term debt | 967 | 691 | ||||||
Total debt | 3,967 | 3,691 | ||||||
Less current portion of long-term debt | (753 | ) | (579 | ) | ||||
Face value of long-term debt | $ | 3,214 | $ | 3,112 | ||||
The effective interest rates of the 2015, 2017, and 2022 Notes were 0.84%, 1.38%, and 2.66%. Interest on the Notes is payable semi-annually in arrears in May and November. We may redeem the Notes at any time in whole, or from time to time, in part at specified redemption prices. We are not subject to any financial covenants under the Notes. We used the net proceeds from the issuance of the Notes for general corporate purposes. The estimated fair value of the Notes was approximately $2.9 billion and $3.0 billion as of December 31, 2013 and 2012, which is based on quoted prices for our publicly-traded debt as of that date. | ||||||||
The other debt, including the current portion, had a weighted average interest rate of 5.5% and 6.4% as of December 31, 2013 and 2012. We used the net proceeds from the issuance of the debt to primarily fund certain international operations. The estimated fair value of the other long-term debt, which is based on Level 2 inputs, approximated its carrying value as of December 31, 2013 and 2012. | ||||||||
As of December 31, 2013, future principal payments for debt were as follows (in millions): | ||||||||
Year Ended December 31, | ||||||||
2014 | $ | 753 | ||||||
2015 | 853 | |||||||
2016 | 36 | |||||||
2017 | 1,037 | |||||||
2018 | 38 | |||||||
Thereafter | 1,250 | |||||||
$ | 3,967 | |||||||
Other_LongTerm_Liabilities
Other Long-Term Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Other Long-Term Liabilities | ' | ||||||||
OTHER LONG-TERM LIABILITIES | |||||||||
Our other long-term liabilities are summarized as follows (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Long-term capital lease obligations | $ | 1,435 | $ | 737 | |||||
Long-term financing lease obligations | 555 | 9 | |||||||
Construction liabilities | 385 | 87 | |||||||
Tax contingencies | 457 | 336 | |||||||
Long-term deferred tax liabilities | 571 | 476 | |||||||
Other | 839 | 632 | |||||||
$ | 4,242 | $ | 2,277 | ||||||
Capital Leases | |||||||||
Certain of our equipment, primarily related to technology infrastructure, and buildings have been acquired under capital leases. Long-term capital lease obligations are as follows (in millions): | |||||||||
31-Dec-13 | |||||||||
Gross capital lease obligations | $ | 2,437 | |||||||
Less imputed interest | (47 | ) | |||||||
Present value of net minimum lease payments | 2,390 | ||||||||
Less current portion of capital lease obligations | (955 | ) | |||||||
Total long-term capital lease obligations | $ | 1,435 | |||||||
Financing Leases | |||||||||
We continue to be the deemed owner after occupancy of certain facilities that were constructed as build-to-suit lease arrangements and previously reflected as “Construction liabilities.” As such, these arrangements are accounted for as financing leases. Long-term finance lease obligations are as follows (in millions): | |||||||||
31-Dec-13 | |||||||||
Gross financing lease obligations | $ | 783 | |||||||
Less imputed interest | (200 | ) | |||||||
Present value of net minimum lease payments | 583 | ||||||||
Less current portion of financing lease obligations | (28 | ) | |||||||
Total long-term financing lease obligations | $ | 555 | |||||||
Construction Liabilities | |||||||||
We capitalize construction in progress and record a corresponding long-term liability for build-to-suit lease agreements where we are considered the owner during the construction period for accounting purposes. | |||||||||
Tax Contingencies | |||||||||
We have recorded tax reserves for tax contingencies, inclusive of accrued interest and penalties, of approximately $457 million as of December 31, 2013, and $336 million as of December 31, 2012, for U.S. and foreign income taxes. These contingencies primarily relate to transfer pricing, state income taxes, and research and development credits. See “Note 11—Income Taxes” for discussion of tax contingencies. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Commitments and Contingencies | ' | |||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||
Commitments | ||||||||||||||||||||||||||||
We have entered into non-cancellable operating, capital, and financing leases for equipment and office, fulfillment center, and data center facilities. Rental expense under operating lease agreements was $759 million, $561 million, and $381 million for 2013, 2012, and 2011. | ||||||||||||||||||||||||||||
The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations, as of December 31, 2013 (in millions): | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Operating and capital commitments: | ||||||||||||||||||||||||||||
Debt principal and interest | $ | 835 | $ | 906 | $ | 81 | $ | 1,081 | $ | 69 | $ | 1,375 | $ | 4,347 | ||||||||||||||
Capital leases, including interest | 963 | 883 | 361 | 71 | 42 | 117 | 2,437 | |||||||||||||||||||||
Financing lease obligations, including interest | 49 | 48 | 52 | 52 | 53 | 529 | 783 | |||||||||||||||||||||
Operating leases | 752 | 654 | 604 | 539 | 470 | 2,116 | 5,135 | |||||||||||||||||||||
Unconditional purchase obligations (1) | 539 | 386 | 80 | 37 | 29 | 27 | 1,098 | |||||||||||||||||||||
Other commitments (2) (3) | 746 | 275 | 167 | 137 | 110 | 1,194 | 2,629 | |||||||||||||||||||||
Total commitments | $ | 3,884 | $ | 3,152 | $ | 1,345 | $ | 1,917 | $ | 773 | $ | 5,358 | $ | 16,429 | ||||||||||||||
___________________ | ||||||||||||||||||||||||||||
-1 | Includes unconditional purchase obligations related to agreements to acquire and license digital video content that represent long-term liabilities or are not reflected on the consolidated balance sheets. For those agreements with variable terms, we do not estimate what the total obligation may be beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified. | |||||||||||||||||||||||||||
-2 | Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that have not been placed in service. | |||||||||||||||||||||||||||
-3 | Excludes $407 million of tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any. | |||||||||||||||||||||||||||
Pledged Assets | ||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, we have pledged or otherwise restricted $482 million and $99 million of our cash, marketable securities, and certain fixed assets as collateral for standby and trade letters of credit, guarantees, debt, and real estate leases. | ||||||||||||||||||||||||||||
Suppliers | ||||||||||||||||||||||||||||
During 2013, no vendor accounted for 10% or more of our purchases. We generally do not have long-term contracts or arrangements with our vendors to guarantee the availability of merchandise, particular payment terms, or the extension of credit limits. | ||||||||||||||||||||||||||||
Legal Proceedings | ||||||||||||||||||||||||||||
The Company is involved from time to time in claims, proceedings, and litigation, including the following: | ||||||||||||||||||||||||||||
In November 2007, an Austrian copyright collection society, Austro-Mechana, filed lawsuits against Amazon.com International Sales, Inc., Amazon EU Sarl, Amazon.de GmbH, Amazon.com GmbH, and Amazon Logistik in the Commercial Court of Vienna, Austria and in the District Court of Munich, Germany seeking to collect a tariff on blank digital media sold by our EU-based retail websites to customers located in Austria. In July 2008, the German court stayed the German case pending a final decision in the Austrian case. In July 2010, the Austrian court ruled in favor of Austro-Mechana and ordered us to report all sales of products to which the tariff potentially applies for a determination of damages. We contested Austro-Mechana’s claim and in September 2010 commenced an appeal in the Commercial Court of Vienna. We lost this appeal and in March 2011 commenced an appeal in the Supreme Court of Austria. In October 2011, the Austrian Supreme Court referred the case to the European Court of Justice (ECJ). In July 2013, the European Court of Justice ruled that EU law does not preclude application of the tariff where certain conditions are met and directed the case back to the Austrian Supreme Court for further proceedings. In October 2013, the Austrian Supreme Court referred the case back to the Commercial Court of Vienna for further fact finding to determine whether the tariff on blank digital media meets the conditions set by the ECJ. In December 2012, a German copyright collection society, Zentralstelle für private Überspielungsrechte (ZPU), filed a complaint against Amazon EU Sarl, Amazon Media EU Sarl, Amazon Services Europe Sarl, Amazon Payments Europe SCA, Amazon Europe Holding Technologies SCS, and Amazon Eurasia Holdings Sarl in the District Court of Luxembourg seeking to collect a tariff on blank digital media sold by the Amazon.de retail website to customers located in Germany. In January 2013, a Belgian copyright collection society, AUVIBEL, filed a complaint against Amazon EU Sarl in the Court of First Instance of Brussels, Belgium, seeking to collect a tariff on blank digital media sold by the Amazon.fr retail website to customers located in Belgium. In November 2013, the Belgian court ruled in favor of AUVIBEL and ordered us to report all sales of products to which the tariff potentially applies for a determination of damages. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters. | ||||||||||||||||||||||||||||
In May 2009, Big Baboon, Inc. filed a complaint against Amazon.com, Inc. and Amazon Payments, Inc. for patent infringement in the United States District Court for the Central District of California. The complaint alleges, among other things, that our third-party selling and payments technology infringes patents owned by Big Baboon, Inc. purporting to cover an “Integrated Business-to-Business Web Commerce And Business Automation System” (U.S. Patent Nos. 6,115,690 and 6,343,275) and seeks injunctive relief, monetary damages, treble damages, costs, and attorneys’ fees. In February 2011, the Court entered an order staying the lawsuit pending the outcome of the Patent and Trademark Office’s re-examination of the patent. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In April 2011, Walker Digital LLC filed several complaints against Amazon.com, Inc. for patent infringement in the United States District Court for the District of Delaware. The complaints allege that we infringe several of the plaintiff’s U.S. patents by, among other things, providing “cross benefits” to customers through our promotions (U.S. Patent Nos. 7,831,470 and 7,827,056), using a customer’s identified original product to offer a substitute product (U.S. Patent No. 7,236,942), using our product recommendations and personalization features to offer complementary products together (U.S. Patent Nos. 6,601,036 and 6,138,105), enabling customers to subscribe to a delivery schedule for products they routinely use at reduced prices (U.S. Patent No. 5,970,470), and offering personalized advertising based on customers’ preferences identified using a data pattern (U.S. Patent No. 7,933,893). Another complaint, filed in the same court in October 2011, alleges that we infringe plaintiff’s U.S. Patent No. 8,041,711 by offering personalized advertising based on customer preferences that associate data with resource locators. Another complaint, filed in the same court in February 2012, alleges that we infringe plaintiff’s U.S. Patent No. 8,112,359 by using product information received from customers to identify and offer substitute products using a manufacturer database. In January 2013, the plaintiff filed another complaint in the same court alleging that we infringe U.S. Patent No. 6,381,582 by allowing customers to make local payments for products ordered online. All of the complaints seek monetary damages, interest, injunctive relief, costs, and attorneys’ fees. In March 2013, the complaints asserting U.S. Patent Nos. 7,236,942 and 7,933,893 were voluntarily dismissed with prejudice. In April 2013, the case asserting U.S. Patent No. 8,041,711 was stayed pending final resolution of the reexamination of that patent. In June 2013, the court granted defendants’ motions to dismiss the complaints asserting U.S. Patent Nos. 7,831,470, 7,827,056, and 8,112,359 for lack of standing. In July 2013, we filed motions seeking entry of a final judgment dismissing those claims with prejudice and for attorneys' fees, and plaintiff filed notices of appeal from the June 2013 order granting the motions to dismiss. In October 2013, the court ruled that its dismissals are with prejudice, and Walker has appealed those rulings. We dispute the remaining allegations of wrongdoing and intend to defend ourselves vigorously in these matters. | ||||||||||||||||||||||||||||
In December 2011, Personalweb Technologies, LLC filed a complaint against Amazon.com, Inc. and Amazon Web Services, LLC in the United States District Court for the Eastern District of Texas. The complaint alleges, among other things, that “Amazon Simple Storage Service (S3) and Amazon ElastiCache” infringe U.S. Patent No. 5,978,791, entitled “Data Processing System Using Substantially Unique Identifiers To Identify Data Items, Whereby Data Items Have The Same Identifiers”; U.S. Patent No. 6,415,280, entitled “Identifying And Requesting Data In Network Using Identifiers Which Are Based On Contents Of Data”; U.S. Patent No. 6,928,442, entitled “Enforcement And Policing Of Licensed Content Using Content-Based Identifiers”; U.S. Patent No. 7,802,310, entitled “Controlling Access To Data In A Data Processing System”; U.S. Patent No. 7,945,539, entitled “Distributing And Accessing Data In A Data Processing System”; U.S. Patent No. 7,945,544, entitled “Similarity-Based Access Control Of Data In A Data Processing System”; U.S. Patent No. 7,949,662, entitled “De-Duplication Of Data In A Data Processing System”; and U.S. Patent No. 8,001,096, entitled “Computer File System Using Content-Dependent File Identifiers.” The complaint seeks an unspecified amount of damages, interest, attorneys’ fees, and an injunction. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In December 2011, Round Rock Research, LLC filed a complaint against Amazon.com, Inc. in the United States District Court for the District of Delaware. The complaint alleges, among other things, that “RFID products” and “Kindle products with unlicensed DRAM” infringe: U.S. Patent Nos. 5,500,650 and 5,627,544, entitled “Data Communication Method Using Identification Protocol”; U.S. Patent No. 5,974,078, entitled “Modulated Spread Spectrum In RF Identification Systems Method”; U.S. Patent No. 6,459,726, entitled “Backscatter Interrogators, Communication Systems And Backscatter Communication Methods”; U.S. Patent No. RE41,531, entitled “Communications Systems For Radio Frequency Identification (RFID)”; U.S. Patent Nos. 6,975,556 and 7,106,646, entitled “Circuit And Method For Controlling A Clock Synchronizing Circuit For Low Power Refresh Operation”; U.S. Patent No. 7,221,020, entitled “Method To Construct A Self Aligned Recess Gate For DRAM Access Devices”; and U.S. Patent No. 7,389,369, entitled “Active Termination Control.” In February 2012, the plaintiff filed an amended complaint that further alleges, among other things, that Kindle products allegedly including “unlicensed flash memory” infringe U.S. Patent No. 5,801,985, entitled “Memory System Having Programmable Control Parameters” and U.S. Patent No. 5,880,996, entitled “Memory System Having Non-Volatile Data Storage Structure For Memory Control Parameters And Method.” In April 2012, the plaintiff filed a second amended complaint further alleging, among other things, that “RFID products” infringe U.S. Patent No. 5,266,925, entitled “Electronic Tag Interrogation Method,” U.S. Patent No. 5,583,850, entitled “Data Communication System Using Identification Protocol,” U.S. Patent No. 5,986,570, entitled “Method For Resolving Signal Collisions Between Multiple RFID Transponders In A Field,” U.S. Patent No. 7,265,674, entitled “Thin, Flexible RFID Labels, And Methods And Apparatus For Use,” and U.S. Patent No. RE41,562, entitled “System And Method For Electronic Tracking Of Units Associated With A Batch.” The second amended complaint seeks an unspecified amount of damages, enhanced damages, interest, costs, and attorneys’ fees. In April 2012, the case was stayed pending reexamination of ten of the asserted patents. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In March 2012, OIP Technologies, Inc. filed a complaint against Amazon.com, Inc. for patent infringement in the United States District Court for the Northern District of California. The complaint alleged, among other things, that certain aspects of our pricing methods infringed U.S. Patent No. 7,970,713, entitled “Method And Apparatus For Automatic Pricing In Electronic Commerce.” The complaint sought three times an unspecified amount of damages, attorneys’ fees, and interest. In September 2012, the Court invalidated the plaintiff’s patent and dismissed the case with prejudice. In September 2012, OIP appealed the judgment of the district court to the United States Court of Appeals for the Federal Circuit, which, in November 2012, stayed all proceedings pending its decision in a separate case that raises a related question of law and, in June 2013, continued the stay pending a decision by the United States Supreme Court. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In May 2012, Clouding IP, LLC f/k/a/ STEC IP, LLC filed a complaint against Amazon.com, Inc. and Amazon Web Services, LLC in the United States District Court for the District of Delaware. The complaint alleges, among other things, that our “Elastic Compute Cloud,” “WhisperSync,” “Virtual Private Cloud,” “Cloud Drive,” and “Kindle Store” services infringe one or more of 11 patents: U.S. Patent Nos. 7,596,784, entitled “Method System And Apparatus For Providing Pay-Per-Use Distributed Computing Resources”; 7,065,637, entitled “System For Configuration Of Dynamic Computing Environments Using A Visual Interface”; 6,738,799, entitled “Methods And Apparatuses For File Synchronization And Updating Using A Signature List”; 5,944,839, entitled “System And Method For Automatically Maintaining A Computer System”; 5,825,891, entitled “Key Management For Network Communication”; 5,495,607, entitled “Network Management System Having Virtual Catalog Of Files Distributively Stored Across Network Domain”; 6,925,481 and 7,254,621, entitled “Technique For Enabling Remote Data Access And Manipulation From A Pervasive Device”; 6,631,449 and 6,918,014, entitled “Dynamic Distributed Data System And Method”; and 6,963,908, entitled “System For Transferring Customized Hardware And Software Settings From One Computer To Another Computer To Provide Personalized Operating Environments.” In August 2012, Clouding amended its complaint to also assert U.S. Patent No. 7,032,089, entitled “Replica Synchronization Using Copy-On-Read Technique,” against WhisperSync. In February 2013, Clouding served its notice of accused products in which it also identified “AWS Market Place,” “AWS Storage Gateway,” “Cloud Player,” “DynamoDB,” “Elastic Block Store (EBS),” “Elastic Load Balancing,” “Elastic Map Reduce,” “Relational Database Service,” “Simple Storage Service,” “Simple DB,” “Cloud Watch,” “Kindle,” and “Elastic Compute Cloud AutoScaling” as allegedly infringing. The complaint seeks an unspecified amount of damages together with interest. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In June 2012, Hand Held Products, Inc., a subsidiary of Honeywell, filed a complaint against Amazon.com, Inc., AMZN Mobile, LLC, AmazonFresh, LLC, A9.com, Inc., A9 Innovations, LLC, and Quidsi, Inc. in the United States District Court for the District of Delaware. The complaint alleges, among other things, that the use of mobile barcode reader applications, including Amazon Mobile, Amazon Price Check, Flow, and AmazonFresh, infringes U.S. Patent No. 6,015,088, entitled “Decoding Of Real Time Video Imaging.” The complaint seeks an unspecified amount of damages, interest, and an injunction. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In July 2012, Norman Blagman filed a purported class-action complaint against Amazon.com, Inc. for copyright infringement in the United States District Court for the Southern District of New York. The complaint alleges, among other things, that Amazon.com, Inc. sells digital music in our Amazon MP3 Store obtained from defendant Orchard Enterprises and other unnamed “digital music aggregators” without obtaining mechanical licenses for the compositions embodied in that music. The complaint seeks certification as a class action, statutory damages, attorneys’ fees, and interest. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In August 2012, an Australian quasi-government entity named Commonwealth Scientific and Industrial Research Organization filed a complaint against Amazon.com, Inc. in the United States District Court for the Eastern District of Texas. The complaint alleges, among other things, that the sale of “products which are operable according to the Institute of Electrical and Electronics Engineers (“IEEE”) 802.11a, g, n, and/or draft n standards” infringe U.S. Patent No. 5,487,069, entitled “Wireless LAN.” The complaint seeks an unspecified amount of damages, enhanced damages, attorneys’ fees, and injunctive relief. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In November 2012, Lexington Luminance LLC filed a complaint against Amazon.com, Inc. and Amazon Digital Services, Inc. in the United States District Court for the District of Massachusetts. The complaint alleges, among other things, that certain light-emitting diodes in certain Kindle devices infringe U.S. Patent No. 6,936,851, entitled “Semiconductor Light-Emitting Device And Method For Manufacturing Same.” The complaint seeks an unspecified amount of damages and an injunction or, in the absence of an injunction, a compulsory ongoing royalty. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In May 2013, Adaptix, Inc. filed a complaint against Amazon.com, Inc. in the United States District Court for the Eastern District of Texas. The complaint alleges, among other things, that certain Kindle devices infringe U.S. Patent Nos. 7,454,212 and 6,947,748, both entitled “OFDMA With Adaptive Subcarrier-Cluster Configuration And Selective Loading.” The complaint seeks an unspecified amount of damages, interest, injunctive relief, and attorneys’ fees. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In July 2013, Telebuyer, LLC filed a complaint against Amazon.com, Inc., Amazon Web Services, LLC, and VADATA, Inc. in the United States District Court for the Eastern District of Virginia. The complaint alleges, among other things, that certain features used on our retail website-including high resolution video and still images, user-indicated areas of interest, targeted follow-up communications, vendor proposals, on-line chat, Gold Box and Lightning Deals, and vendor ratings-infringe seven U.S. patents: Nos. 6,323,894, 7,835,508, 7,835,509, 7,839,984, 8,059,796, and 8,098,272, all entitled “Commercial Product Routing System With Video Vending Capability,” and 8,315,364, entitled “Commercial Product Routing System With Mobile Wireless And Video Vending Capability.” The complaint seeks an unspecified amount of damages, interest, and injunctive relief. In September 2013, the case was transferred to the United States District Court for the Western District of Washington. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In August 2013, Cellular Communications Equipment, LLC filed a complaint against Amazon.com, Inc. in the United States District Court for the Eastern District of Texas. The complaint alleges, among other things, that certain Kindle devices infringe U.S. Patent Nos.: 6,819,923, entitled “Method For Communication Of Neighbor Cell Information”; 7,215,962, entitled “Method For An Intersystem Connection Handover”; 7,941,174, entitled “Method For Multicode Transmission By A Subscriber Station”; and 8,055,820, entitled “Apparatus, System, And Method For Designating A Buffer Status Reporting Format Based On Detected Pre-Selected Buffer Conditions.” The complaint seeks an unspecified amount of damages and interest. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
Beginning in August 2013, a number of complaints were filed alleging, among other things, that Amazon.com, Inc. and several of its subsidiaries failed to compensate hourly workers for time spent waiting in security lines and otherwise violated federal and state wage and hour statutes and common law. In August 2013, Busk v. Integrity Staffing Solutions, Inc. and Amazon.com, Inc. was filed in the United States District Court for the District of Nevada, and Vance v. Amazon.com, Inc., Zappos.com Inc., another affiliate of Amazon.com, Inc., and Kelly Services, Inc. was filed in the United States District Court for the Western District of Kentucky. In September 2013, Allison v. Amazon.com, Inc. and Integrity Staffing Solutions, Inc. was filed in the United States District Court for the Western District of Washington, and Johnson v. Amazon.com, Inc. and an affiliate of Amazon.com, Inc. was filed in the United States District Court for the Western District of Kentucky. In October 2013, Davis v. Amazon.com, Inc., an affiliate of Amazon.com, Inc., and Integrity Staffing Solutions, Inc. was filed in the United States District Court for the Middle District of Tennessee. The plaintiffs variously purport to represent a nationwide class of certain current and former employees under the Fair Labor Standards Act and/or state-law-based subclasses for certain current and former employees in states including Arizona, California, Pennsylvania, South Carolina, Kentucky, and Nevada, and one complaint asserts nationwide breach of contract and unjust enrichment claims. The complaints seek an unspecified amount of damages, interest, injunctive relief, and attorneys’ fees. We have been named in several other similar cases. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters. | ||||||||||||||||||||||||||||
In September 2013, Personalized Media Communications, LLC filed a complaint against Amazon.com, Inc. and Amazon Web Services, LLC in the United States District Court for the District of Delaware. The complaint alleges, among other things, that the use of certain Kindle devices, Kindle apps and/or Amazon.com, Inc.’s website to purchase and receive electronic media infringes nine U.S. Patents: Nos. 5,887,243, 7,801,304, 7,805,749, 7,940,931, 7,769,170, 7,864,956, 7,827,587, 8,046,791, and 7,883,252, all entitled “Signal Processing Apparatus And Methods.” The complaint also alleges, among other things, that CloudFront, S3, and EC2 web services infringe three of those patents, Nos. 7,801,304, 7,864,956, and 7,827,587. The complaint seeks an unspecified amount of damages, interest, and injunctive relief. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In October 2013, Mobile Telecommunications Technologies, LLC filed a complaint against Amazon.com, Inc. for patent infringement in the United States District Court for the Eastern District of Texas. The complaint alleges, among other things, that our network operation centers and our mobile devices, such as Kindle Fire models based on the Android operating system that provide XMPP-compliant messaging services and applications, infringe U.S. Patent No. 5,809,428, entitled “Method And Device For Processing Undelivered Data Messages In A Two-Way Wireless Communications System.” The complaint also alleges that Amazon’s mobile devices infringe U.S. Patent No. 5,754,946, entitled “Nationwide Communication System,” and that Amazon.com, Inc. infringes U.S. Patent No. 5,786,748, entitled “Method And Apparatus For Giving Notification Of Express Mail Delivery,” by providing tracking and notification services to customers who purchase products directly from Amazon.com, Inc. The complaint seeks an unspecified amount of damages, enhanced damages, attorneys’ fees, costs, interest, and injunctive relief. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In October 2013, Tuxis Technologies, LLC filed a complaint against Amazon.com, Inc. for patent infringement in the United States District Court for District of Delaware. The complaint alleges, among other things, that “the Amazon.com website” with “recommendation features” infringes U.S. Patent No. 6,055,513, entitled “Methods And Apparatus For Intelligent Selection Of Goods And Services In Telephonic And Electronic Commerce.” The complaint seeks an unspecified amount of damages, attorneys’ fees, costs, and interest. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In November 2013, Memory Integrity, LLC filed a complaint against Amazon.com, Inc. for patent infringement in the United States District Court for the District of Delaware. The complaint alleges, among other things, that certain Kindle devices infringe U.S. Patent No. 7,296,121, entitled “Reducing Probe Traffic In Multiprocessor Systems.” The complaint seeks an unspecified amount of damages, costs, expenses, and interest. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In November 2013, Vantage Point Technology, Inc. filed a complaint against Amazon.com, Inc. for patent infringement in the United States District Court for the Eastern District of Texas. The complaint alleges, among other things, that Kindle devices with a Cortex A-9 core processor and OMAP 4430 chipset, Kindle device HD tablets with a Cortex A-9 core processor and OMAP 4470 chipset, and Kindle devices with a Cortex A-8 core processor and Freescale MX50 family chipset infringe U.S. Patent No. 5,463,750, entitled “Method And Apparatus For Translating Virtual Addresses In A Data Processing System Having Multiple Instruction Pipelines And Separate TLB’s For Each Pipeline.” The complaint seeks an unspecified amount of damages, enhanced damages, costs, and interest. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In December 2013, Appistry, Inc. filed a complaint against Amazon.com, Inc. and Amazon Web Services, Inc. for patent infringement in the United States District Court for the Eastern District of Missouri. The complaint alleges, among other things, that Amazon’s Elastic Compute Cloud infringes U.S. Patent Nos. 8,200,746, entitled “System And Method For Territory-Based Processing Of Information,” and 8,341,209, entitled “System And Method For Processing Information Via Networked Computers Including Request Handlers, Process Handlers, And Task Handlers.” The complaint seeks injunctive relief, an unspecified amount of monetary damages, trebled damages, costs, and interest. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In December 2013, Delaware Display Group LLC and Innovative Display Technologies LLC filed a complaint against Amazon.com, Inc. for patent infringement in the United States District Court for the District of Delaware. The complaint alleges, among other things, that Amazon’s tablets with liquid crystal displays infringe U.S. Patent Nos.: 6,755,547, 7,300,194, 7,384,177, 7,404,660, 7,434,974, 7,357,370, and 8,215,816, all entitled “Light Emitting Panel Assemblies.” The complaint also alleges that tablets with liquid crystal displays infringe U.S. Patent No. 7,914,196, entitled “Light Redirecting Film Systems Having Pattern Of Variable Optical Elements.” The complaint seeks injunctive relief, an unspecified amount of monetary damages, costs, interest, and attorneys’ fees. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
In December 2013, ContentGuard Holdings, Inc. filed a complaint against Amazon.com, Inc. for patent infringement in the United States District Court for Eastern District of Texas. The complaint alleges, among other things, that certain digital rights management software used by various Kindle Fire software applications, including the Kindle Reader and Amazon Instant Video, infringe seven U.S. Patents: Nos. 6,963,859, entitled “Content Rendering Repository”; 7,523,072, entitled “System For Controlling The Distribution And Use Of Digital Works”; 7,269,576, entitled “Content Rendering Apparatus”; 8,370,956, entitled “System And Method For Rendering Digital Content In Accordance With Usage Rights Information”; 8,393,007, entitled “System And Method For Distributing Digital Content In Accordance With Usage Rights Information”; 7,225,160, entitled “Digital Works Having Usage Rights And Method For Creating The Same”; and 8,583,556, entitled “Method For Providing A Digital Asset For Distribution.” The complaint seeks an unspecified amount of damages, an injunction, enhanced damages, attorneys’ fees, costs, and interest. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. | ||||||||||||||||||||||||||||
The outcomes of our legal proceedings are inherently unpredictable, subject to significant uncertainties, and could be material to our operating results and cash flows for a particular period. In addition, for some matters for which a loss is probable or reasonably possible, an estimate of the amount of loss or range of loss is not possible and we may be unable to estimate the possible loss or range of losses that could potentially result from the application of non-monetary remedies. | ||||||||||||||||||||||||||||
See also “Note 11—Income Taxes.” |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||
STOCKHOLDERS' EQUITY | |||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||
We have authorized 500 million shares of $0.01 par value preferred stock. No preferred stock was outstanding for any period presented. | |||||||||||||||||||||
Common Stock | |||||||||||||||||||||
Common shares outstanding plus shares underlying outstanding stock awards totaled 476 million, 470 million, and 468 million, as of December 31, 2013, 2012, and 2011. These totals include all vested and unvested stock awards outstanding, including those awards we estimate will be forfeited. | |||||||||||||||||||||
Stock Repurchase Activity | |||||||||||||||||||||
In January 2010, our Board of Directors authorized the Company to repurchase up to $2.0 billion of our common stock with no fixed expiration. We have $763 million remaining under the $2.0 billion repurchase program. | |||||||||||||||||||||
Stock Award Plans | |||||||||||||||||||||
Employees vest in restricted stock unit awards over the corresponding service term, generally between two and five years. | |||||||||||||||||||||
Stock Award Activity | |||||||||||||||||||||
The following table summarizes our restricted stock unit activity (in millions): | |||||||||||||||||||||
Number of Units | Weighted Average | ||||||||||||||||||||
Grant-Date | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Outstanding as of January 1, 2011 | 14 | $ | 96 | ||||||||||||||||||
Units granted | 5.4 | 193 | |||||||||||||||||||
Units vested | (5.1 | ) | 73 | ||||||||||||||||||
Units forfeited | (1.2 | ) | 122 | ||||||||||||||||||
Outstanding as of December 31, 2011 | 13.1 | 143 | |||||||||||||||||||
Units granted | 8.2 | 209 | |||||||||||||||||||
Units vested | (4.2 | ) | 110 | ||||||||||||||||||
Units forfeited | (1.7 | ) | 168 | ||||||||||||||||||
Outstanding as of December 31, 2012 | 15.4 | 184 | |||||||||||||||||||
Units granted | 7.2 | 283 | |||||||||||||||||||
Units vested | (4.5 | ) | 160 | ||||||||||||||||||
Units forfeited | (1.8 | ) | 209 | ||||||||||||||||||
Outstanding as of December 31, 2013 | 16.3 | $ | 233 | ||||||||||||||||||
Scheduled vesting for outstanding restricted stock units as of December 31, 2013, is as follows (in millions): | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||
Scheduled vesting—restricted stock units | 5.4 | 5.8 | 3.2 | 1.6 | 0.2 | 0.1 | 16.3 | ||||||||||||||
As of December 31, 2013, there was $1.7 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements. This compensation is recognized on an accelerated basis with approximately half of the compensation expected to be expensed in the next twelve months, and has a weighted-average recognition period of 1.2 years. | |||||||||||||||||||||
During 2013 and 2012, the fair value of restricted stock units that vested was $1.4 billion and $928 million. | |||||||||||||||||||||
As matching contributions under our 401(k) savings plan, we granted 0.1 million shares of common stock in 2013 and 2012. Shares granted as matching contributions under our 401(k) plan are included in outstanding common stock when issued. | |||||||||||||||||||||
Common Stock Available for Future Issuance | |||||||||||||||||||||
As of December 31, 2013, common stock available for future issuance to employees is 143 million shares. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||
Changes in the composition of accumulated other comprehensive loss for 2013, 2012, and 2011 are as follows (in millions): | |||||||||||||
Foreign currency | Unrealized gains on | Total | |||||||||||
translation | available-for-sale | ||||||||||||
adjustments | securities | ||||||||||||
Balances as of January 1, 2011 | $ | (203 | ) | $ | 13 | $ | (190 | ) | |||||
Other comprehensive income (loss) | (123 | ) | (3 | ) | (126 | ) | |||||||
Balances as of December 31, 2011 | (326 | ) | 10 | (316 | ) | ||||||||
Other comprehensive income | 76 | 1 | 77 | ||||||||||
Balances as of December 31, 2012 | (250 | ) | 11 | (239 | ) | ||||||||
Other comprehensive income (loss) | 63 | (9 | ) | 54 | |||||||||
Balances as of December 31, 2013 | $ | (187 | ) | $ | 2 | $ | (185 | ) | |||||
Amounts included in accumulated other comprehensive loss are recorded net of their related income tax effects. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
INCOME TAXES | ||||||||||||
In 2013, 2012, and 2011, we recorded net tax provisions of $161 million, $428 million, and $291 million. We have tax benefits relating to excess stock-based compensation deductions and accelerated depreciation deductions that are being utilized to reduce our U.S. taxable income. Accelerated depreciation deductions on qualifying property were a result of U.S. legislation that expired in December 2013. As such, cash taxes paid, net of refunds, were $169 million, $112 million, and $33 million for 2013, 2012, and 2011. | ||||||||||||
The components of the provision for income taxes, net are as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current taxes: | ||||||||||||
U.S. and state | $ | 144 | $ | 562 | $ | 103 | ||||||
International | 173 | 131 | 52 | |||||||||
Current taxes | 317 | 693 | 155 | |||||||||
Deferred taxes: | ||||||||||||
U.S. and state | (133 | ) | (156 | ) | 157 | |||||||
International | (23 | ) | (109 | ) | (21 | ) | ||||||
Deferred taxes | (156 | ) | (265 | ) | 136 | |||||||
Provision for income taxes, net | $ | 161 | $ | 428 | $ | 291 | ||||||
U.S. and international components of income before income taxes are as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S. | $ | 704 | $ | 882 | $ | 658 | ||||||
International | (198 | ) | (338 | ) | 276 | |||||||
Income before income taxes | $ | 506 | $ | 544 | $ | 934 | ||||||
The items accounting for differences between income taxes computed at the federal statutory rate and the provision recorded for income taxes are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
Effect of: | ||||||||||||
Impact of foreign tax differential | (8.1 | ) | 31.5 | (8.4 | ) | |||||||
State taxes, net of federal benefits | 2.7 | 0.2 | 1.5 | |||||||||
Tax credits | (16.6 | ) | (4.4 | ) | (3.2 | ) | ||||||
Nondeductible compensation | 16.9 | 13.3 | 4.9 | |||||||||
Domestic production activities deduction | (2.1 | ) | — | — | ||||||||
Other, net | 4 | 3 | 1.4 | |||||||||
Total | 31.8 | % | 78.6 | % | 31.2 | % | ||||||
Our effective tax rate in 2013 was lower than the 35% U.S. federal statutory rate and our effective tax rate in 2012 primarily due to the favorable impact of earnings in lower tax rate jurisdictions, a decline in the proportion of our losses for which we may not realize a related tax benefit, and the retroactive extension of the U.S. federal research and development credit, which expired in December 2013. The favorable impact of earnings in lower tax rate jurisdictions primarily relates to our European operations, which are headquartered in Luxembourg. 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. In 2013, we recognized tax benefits for a greater proportion of these losses as compared to 2012. We have recorded valuation allowances against the deferred tax assets associated with losses for which we may not realize a related tax benefit. | ||||||||||||
In 2012, our effective tax rate was higher than the 35% U.S. federal statutory rate and our effective tax rate in 2011 primarily due to the adverse impact of foreign jurisdiction losses of subsidiaries primarily located outside of Europe for which we may not realize a tax benefit. The adverse impact of these losses was partially offset by the favorable impact of earnings in lower tax rate jurisdictions primarily related to our European operations. Additionally, our effective tax rate in 2012 was more volatile as compared to 2011 due to the lower level of pre-tax income generated during the year, relative to our tax expense. Our effective tax rate in 2012 was also adversely impacted by acquisitions (including integrations), audit developments, nondeductible expenses, and changes in tax law such as the expiration of the U.S. federal research and development credit at the end of 2011. | ||||||||||||
In 2011, the favorable impact of earnings in lower tax rate jurisdictions offset the adverse impact of foreign jurisdiction losses and as a result, the effective tax rate was lower than the 35% U.S. federal statutory rate. | ||||||||||||
Deferred income tax assets and liabilities are as follows (in millions): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Net operating losses U.S. - Federal/States (1) | $ | 53 | $ | 47 | ||||||||
Net operating losses foreign (2) | 427 | 289 | ||||||||||
Accrued liabilities, reserves, & other expenses | 590 | 482 | ||||||||||
Stock-based compensation | 396 | 281 | ||||||||||
Deferred revenue | 249 | 129 | ||||||||||
Assets held for investment | 164 | 129 | ||||||||||
Other items | 177 | 133 | ||||||||||
Tax credits (3) | 107 | 12 | ||||||||||
Total gross deferred tax assets | 2,163 | 1,502 | ||||||||||
Less valuation allowance (4) | (698 | ) | (415 | ) | ||||||||
Deferred tax assets, net of valuation allowance | 1,465 | 1,087 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation & amortization | (1,021 | ) | (698 | ) | ||||||||
Acquisition related intangible assets | (201 | ) | (274 | ) | ||||||||
Other items | (16 | ) | (29 | ) | ||||||||
Net deferred tax assets, net of valuation allowance | $ | 227 | $ | 86 | ||||||||
___________________ | ||||||||||||
-1 | Excluding $81 million and $9 million of deferred tax assets as of December 31, 2013 and 2012, related to net operating losses that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. | |||||||||||
-2 | Excluding $2 million and $2 million of deferred tax assets as of December 31, 2013 and 2012, related to net operating losses that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. | |||||||||||
-3 | Excluding $227 million and $146 million of deferred tax assets as of December 31, 2013 and 2012, related to tax credits that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. | |||||||||||
-4 | Relates primarily to deferred tax assets that would only be realizable upon the generation of net income in certain foreign taxing jurisdictions and future capital gains. | |||||||||||
As of December 31, 2013, our federal, foreign, and state net operating loss carryforwards for income tax purposes were approximately $275 million, $1.6 billion, and $880 million. The federal and state net operating loss carryforwards are subject to limitations under Section 382 of the Internal Revenue Code and applicable state tax law. If not utilized, a portion of the federal, foreign, and state net operating loss carryforwards will begin to expire in 2027, 2014, and 2014, respectively. As of December 31, 2013, our tax credit carryforwards for income tax purposes were approximately $334 million. If not utilized, a portion of the tax credit carryforwards will begin to expire in 2020. | ||||||||||||
The Company’s consolidated balance sheets reflect tax credit carryforwards excluding amounts resulting from excess stock-based compensation. Accordingly, such credits from excess stock-based compensation are accounted for as an increase to additional paid-in capital if and when realized through a reduction in income taxes payable. | ||||||||||||
Tax Contingencies | ||||||||||||
We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Significant judgment is required in evaluating our tax positions and determining our provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when we believe that certain positions might be challenged despite our belief that our tax return positions are fully supportable. We adjust these reserves in light of changing facts and circumstances, such as the outcome of tax audits. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate. | ||||||||||||
The reconciliation of our tax contingencies is as follows (in millions): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Gross tax contingencies – January 1 | $ | 294 | $ | 229 | $ | 213 | ||||||
Gross increases to tax positions in prior periods | 78 | 91 | 22 | |||||||||
Gross decreases to tax positions in prior periods | (18 | ) | (47 | ) | (3 | ) | ||||||
Gross increases to current period tax positions | 54 | 26 | 4 | |||||||||
Audit settlements paid | (1 | ) | (4 | ) | (1 | ) | ||||||
Lapse of statute of limitations | — | (1 | ) | (6 | ) | |||||||
Gross tax contingencies – December 31 (1) | $ | 407 | $ | 294 | $ | 229 | ||||||
___________________ | ||||||||||||
-1 | As of December 31, 2013, we had $407 million of tax contingencies, of which $346 million, if fully recognized, would decrease our effective tax rate. | |||||||||||
As of December 31, 2013 and 2012, we had accrued interest and penalties, net of federal income tax benefit, related to tax contingencies of $33 million and $25 million. Interest and penalties, net of federal income tax benefit, recognized for the years ended December 31, 2013, 2012, and 2011 was $8 million, $1 million, and $3 million. | ||||||||||||
We are under examination, or may be subject to examination, by the Internal Revenue Service (“IRS”) for the calendar year 2005 or thereafter. These examinations may lead to ordinary course adjustments or proposed adjustments to our taxes or our net operating losses. As previously disclosed, we have received Notices of Proposed Adjustment from the IRS for 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 over a seven year period beginning in 2005, totaling approximately $1.5 billion, subject to interest. To date, we have not resolved this matter administratively and, in December 2012, we petitioned the U.S. Tax Court to resolve the matter. We continue to disagree with these IRS positions and intend to contest them vigorously. | ||||||||||||
Certain of our subsidiaries are under examination or investigation or may be subject to examination or investigation by the French Tax Administration (“FTA”) for calendar year 2006 or thereafter. These examinations may lead to ordinary course adjustments or proposed adjustments to our taxes. While we have not yet received a final assessment from the FTA, in September 2012, we received proposed tax assessment notices for calendar years 2006 through 2010 relating to the allocation of income between foreign jurisdictions. The notices propose additional French tax of approximately $250 million, including interest and penalties through the date of the assessment. We disagree with the proposed assessment and intend to contest it vigorously. We plan to pursue all available administrative remedies at the FTA, and if we are not able to resolve this matter with the FTA, we plan to pursue judicial remedies. 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 these particular tax authorities for the calendar year 2003 and thereafter. | ||||||||||||
We expect the total amount of tax contingencies will grow in 2014. In addition, changes in state, federal, and foreign tax laws may increase our tax contingencies. The timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ from the amounts accrued. It is reasonably possible that within the next 12 months we will receive additional assessments by various tax authorities or possibly reach resolution of income tax examinations in one or more jurisdictions. These assessments or settlements may or may not result in changes to our contingencies related to positions on tax filings in years through 2013. The actual amount of any change could vary significantly depending on the ultimate timing and nature of any settlements. We cannot currently provide an estimate of the range of possible outcomes. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Information | ' | |||||||||||
SEGMENT INFORMATION | ||||||||||||
We have organized our operations into two segments: North America and International. We present our segment information along the same lines that our Chief Executive Officer reviews our operating results in assessing performance and allocating resources. | ||||||||||||
We allocate to segment results the operating expenses “Fulfillment,” “Marketing,” “Technology and content,” and “General and administrative,” but exclude from our allocations the portions of these expense lines attributable to stock-based compensation. We do not allocate the line item “Other operating expense (income), net” to our segment operating results. A majority of our costs for “Technology and content” are incurred in the U.S. and most of these costs are allocated to our North America segment. There are no internal revenue transactions between our reporting segments. | ||||||||||||
North America | ||||||||||||
The North America segment consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America-focused websites such as www.amazon.com and www.amazon.ca and include amounts earned from AWS. This segment includes export sales from www.amazon.com and www.amazon.ca. | ||||||||||||
International | ||||||||||||
The International segment consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused websites. This segment includes export sales from these internationally based websites (including export sales from these sites to customers in the U.S. and Canada), but excludes export sales from our U.S. and Canadian websites. | ||||||||||||
Information on reportable segments and reconciliation to consolidated net income (loss) is as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
North America | ||||||||||||
Net sales | $ | 44,517 | $ | 34,813 | $ | 26,705 | ||||||
Segment operating expenses (1) | 42,631 | 33,221 | 25,772 | |||||||||
Segment operating income | $ | 1,886 | $ | 1,592 | $ | 933 | ||||||
International | ||||||||||||
Net sales | $ | 29,935 | $ | 26,280 | $ | 21,372 | ||||||
Segment operating expenses (1) | 29,828 | 26,204 | 20,732 | |||||||||
Segment operating income | $ | 107 | $ | 76 | $ | 640 | ||||||
Consolidated | ||||||||||||
Net sales | $ | 74,452 | $ | 61,093 | $ | 48,077 | ||||||
Segment operating expenses (1) | 72,459 | 59,425 | 46,504 | |||||||||
Segment operating income | 1,993 | 1,668 | 1,573 | |||||||||
Stock-based compensation | (1,134 | ) | (833 | ) | (557 | ) | ||||||
Other operating income (expense), net | (114 | ) | (159 | ) | (154 | ) | ||||||
Income from operations | 745 | 676 | 862 | |||||||||
Total non-operating income (expense) | (239 | ) | (132 | ) | 72 | |||||||
Provision for income taxes | (161 | ) | (428 | ) | (291 | ) | ||||||
Equity-method investment activity, net of tax | (71 | ) | (155 | ) | (12 | ) | ||||||
Net income (loss) | $ | 274 | $ | (39 | ) | $ | 631 | |||||
___________________ | ||||||||||||
-1 | Represents operating expenses, excluding stock-based compensation and “Other operating expense (income), net,” which are not allocated to segments. | |||||||||||
Net sales of similar products and services were as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net Sales: | ||||||||||||
Media | $ | 21,716 | $ | 19,942 | $ | 17,779 | ||||||
Electronics and other general merchandise | 48,802 | 38,628 | 28,712 | |||||||||
Other (1) | 3,934 | 2,523 | 1,586 | |||||||||
$ | 74,452 | $ | 61,093 | $ | 48,077 | |||||||
___________________ | ||||||||||||
-1 | Includes sales from non-retail activities, such as AWS, advertising services, and our co-branded credit card agreements. | |||||||||||
Net sales generated from these internationally-focused websites are denominated in local functional currencies. Revenues are translated at average rates prevailing throughout the period. Net sales attributed to foreign countries are as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Germany | $ | 10,535 | $ | 8,732 | $ | 7,230 | ||||||
Japan | 7,639 | 7,800 | 6,576 | |||||||||
United Kingdom | 7,291 | 6,478 | 5,348 | |||||||||
Total assets, property and equipment, net, and total property and equipment additions, by geography, reconciled to consolidated amounts are (in millions): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
North America | ||||||||||||
Total assets | $ | 26,108 | $ | 20,703 | ||||||||
Property and equipment, net | 8,447 | 5,481 | ||||||||||
Total property and equipment additions | 4,837 | 3,348 | ||||||||||
International | ||||||||||||
Total assets | $ | 14,051 | $ | 11,852 | ||||||||
Property and equipment, net | 2,502 | 1,579 | ||||||||||
Total property and equipment additions | 1,536 | 969 | ||||||||||
Consolidated | ||||||||||||
Total assets | $ | 40,159 | $ | 32,555 | ||||||||
Property and equipment, net | 10,949 | 7,060 | ||||||||||
Total property and equipment additions | 6,373 | 4,317 | ||||||||||
Except for the U.S., property and equipment, net, in any single country was less than 10% of consolidated property and equipment, net. | ||||||||||||
Depreciation expense, by segment, is as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
North America | $ | 1,863 | $ | 1,229 | $ | 795 | ||||||
International | 597 | 424 | 239 | |||||||||
Consolidated | $ | 2,460 | $ | 1,653 | $ | 1,034 | ||||||
Quarterly_Results_Unaudited
Quarterly Results (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Results (Unaudited) | ' | ||||||||||||||||
QUARTERLY RESULTS (UNAUDITED) | |||||||||||||||||
The following tables contain selected unaudited statement of operations information for each quarter of 2013 and 2012. The following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Our business is affected by seasonality, which historically has resulted in higher sales volume during our fourth quarter. Unaudited quarterly results are as follows (in millions, except per share data): | |||||||||||||||||
Year Ended December 31, 2013 (1) | |||||||||||||||||
Fourth | Third | Second | First | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Net sales | $ | 25,587 | $ | 17,092 | $ | 15,704 | $ | 16,070 | |||||||||
Income (loss) from operations | $ | 510 | $ | (25 | ) | $ | 79 | $ | 181 | ||||||||
Income (loss) before income taxes | $ | 451 | $ | (43 | ) | $ | 17 | $ | 81 | ||||||||
Provision (benefit) for income taxes | $ | 179 | $ | (12 | ) | $ | 13 | $ | (18 | ) | |||||||
Net income (loss) | $ | 239 | $ | (41 | ) | $ | (7 | ) | $ | 82 | |||||||
Basic earnings per share | $ | 0.52 | $ | (0.09 | ) | $ | (0.02 | ) | $ | 0.18 | |||||||
Diluted earnings per share | $ | 0.51 | $ | (0.09 | ) | $ | (0.02 | ) | $ | 0.18 | |||||||
Shares used in computation of earnings per share: | |||||||||||||||||
Basic | 458 | 457 | 456 | 455 | |||||||||||||
Diluted | 467 | 457 | 456 | 463 | |||||||||||||
Year Ended December 31, 2012 (1) | |||||||||||||||||
Fourth | Third | Second | First | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Net sales | $ | 21,268 | $ | 13,806 | $ | 12,834 | $ | 13,185 | |||||||||
Income (loss) from operations | $ | 405 | $ | (28 | ) | $ | 107 | $ | 192 | ||||||||
Income (loss) before income taxes | $ | 337 | $ | (22 | ) | $ | 146 | $ | 84 | ||||||||
Provision for income taxes | $ | 194 | $ | 83 | $ | 109 | $ | 43 | |||||||||
Net income (loss) | $ | 97 | $ | (274 | ) | $ | 7 | $ | 130 | ||||||||
Basic earnings per share | $ | 0.21 | $ | (0.60 | ) | $ | 0.02 | $ | 0.29 | ||||||||
Diluted earnings per share | $ | 0.21 | $ | (0.60 | ) | $ | 0.01 | $ | 0.28 | ||||||||
Shares used in computation of earnings per share: | |||||||||||||||||
Basic | 454 | 452 | 451 | 453 | |||||||||||||
Diluted | 461 | 452 | 458 | 460 | |||||||||||||
___________________ | |||||||||||||||||
-1 | The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. |
Description_of_Business_and_Ac1
Description of Business and Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Description of Business | ' |
Description of Business | |
Amazon.com opened its virtual doors on the World Wide Web in July 1995. We seek to be Earth’s most customer-centric company. In each of our two geographic segments, we serve our primary customer sets, consisting of consumers, sellers, enterprises, and content creators. We serve consumers through our retail websites and focus on selection, price, and convenience. We also manufacture and sell electronic devices. We offer programs that enable sellers to sell their products on our websites and their own branded websites and to fulfill orders through us, and programs that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. We serve developers and enterprises of all sizes through AWS, which provides access to technology infrastructure that enables virtually any type of business. In addition, we provide services, such as advertising services and co-branded credit card agreements. | |
We have organized our operations into two segments: North America and International. See “Note 12—Segment Information.” | |
Prior Period Reclassifications | ' |
Prior Period Reclassifications | |
Certain prior period amounts have been reclassified to conform to the current period presentation. Unearned revenue is now presented separately on our consolidated balance sheets. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of Amazon.com, Inc., its wholly-owned subsidiaries, and those entities in which we have a variable interest and of which we are the primary beneficiary. Intercompany balances and transactions between consolidated entities are eliminated. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, determining the selling price of products and services in multiple element revenue arrangements and determining the lives of these elements, incentive discount offers, sales returns, vendor funding, stock-based compensation forfeiture rates, income taxes, valuation and impairment of investments, inventory valuation and inventory purchase commitments, collectability of receivables, valuation of acquired intangibles and goodwill, depreciable lives of property and equipment, internal-use software, acquisition purchase price allocations, investments in equity interests, and contingencies. Actual results could differ materially from those estimates. | |
Earnings per Share | ' |
Earnings per Share | |
Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when we recognize a net loss, we exclude the impact of outstanding stock awards from the diluted loss per share calculation as their inclusion would have an antidilutive effect. | |
Revenue | ' |
Revenue | |
We recognize revenue from product sales or services rendered when the following four criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable, and collectability is reasonably assured. Revenue arrangements with multiple deliverables are divided into separate units and revenue is allocated using estimated selling prices if we do not have vendor-specific objective evidence or third-party evidence of the selling prices of the deliverables. We allocate the arrangement price to each of the elements based on the estimated selling prices of each element. Estimated selling prices are management’s best estimates of the prices that we would charge our customers if we were to sell the standalone elements separately and include considerations of customer demand, prices charged by us and others for similar deliverables, and the price if largely based on costs. Sales of our Kindle device are considered arrangements with multiple deliverables, consisting of the device, 3G wireless access and delivery for some models, and software upgrades. The revenue related to the device, which is the substantial portion of the total sale price, and related costs are recognized upon delivery as cost of sales. Revenue related to 3G wireless access and delivery and software upgrades is amortized over the average life of the device. Sales of Amazon Prime memberships are considered arrangements with multiple deliverables, including shipping benefits, Prime Instant Video, and access to the Kindle Owners' Lending Library. The revenue related to the deliverables is amortized over the life of the membership according to the estimated delivery of services. Amazon Prime membership fees are allocated between product sales and services sales. Costs to deliver Amazon Prime benefits are recognized as cost of sales as incurred. | |
We evaluate whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. Generally, when we are primarily obligated in a transaction, are subject to inventory risk, have latitude in establishing prices and selecting suppliers, or have several but not all of these indicators, revenue is recorded at the gross sale price. We generally record the net amounts as commissions earned if we are not primarily obligated and do not have latitude in establishing prices. Such amounts earned are determined using a fixed percentage, a fixed-payment schedule, or a combination of the two. | |
Product sales represent revenue from the sale of products and related shipping fees and digital content where we are the seller of record. Product sales and shipping revenues, net of promotional discounts, rebates, and return allowances, are recorded when the products are shipped and title passes to customers. Kindle devices sold through retailers are recognized at the point of sale to consumers. Retail sales to customers are made pursuant to a sales contract that provides for transfer of both title and risk of loss upon our delivery to the carrier. | |
Services sales represent third-party seller fees earned (including commissions) and related shipping fees, and non-retail activities such as AWS, advertising services, and our co-branded credit card agreements. Services sales, net of promotional discounts and return allowances, are recognized when services have been rendered. | |
Return allowances, which reduce revenue, are estimated using historical experience. Allowance for returns was $167 million, $198 million, and $155 million as of December 31, 2013, 2012, and 2011. Additions to the allowance were $907 million, $702 million, and $542 million, and deductions to the allowance were $938 million, $659 million, and $490 million as of December 31, 2013, 2012, and 2011. Revenue from product sales and services rendered is recorded net of sales and consumption taxes. Additionally, we periodically provide incentive offers to our customers to encourage purchases. Such offers include current discount offers, such as percentage discounts off current purchases, inducement offers, such as offers for future discounts subject to a minimum current purchase, and other similar offers. Current discount offers, when accepted by our customers, are treated as a reduction to the purchase price of the related transaction, while inducement offers, when accepted by our customers, are treated as a reduction to purchase price based on estimated future redemption rates. Redemption rates are estimated using our historical experience for similar inducement offers. Current discount offers and inducement offers are presented as a net amount in “Total net sales.” | |
Cost of Sales | ' |
Cost of Sales | |
Cost of sales consists of the purchase price of consumer products and digital content where we are the seller of record, inbound and outbound shipping charges, and packaging supplies. Shipping charges to receive products from our suppliers are included in our inventory, and recognized as cost of sales upon sale of products to our customers. Payment processing and related transaction costs, including those associated with seller transactions, are classified in “Fulfillment” on our consolidated statements of operations. | |
Vendor Agreements | ' |
Vendor Agreements | |
We have agreements with our vendors to receive funds for cooperative marketing efforts, promotions, and volume rebates. We generally consider amounts received from vendors to be a reduction of the prices we pay for their goods or services, and therefore record those amounts as a reduction of the cost of inventory or cost of services. Vendor rebates are typically dependent upon reaching minimum purchase thresholds. We evaluate the likelihood of reaching purchase thresholds using past experience and current year forecasts. When volume rebates can be reasonably estimated, we record a portion of the rebate as we make progress towards the purchase threshold. | |
When we receive direct reimbursements for costs incurred by us in advertising the vendor’s product or service, the amount we receive is recorded as an offset to “Marketing” on our consolidated statements of operations. | |
Fulfillment | ' |
Fulfillment | |
Fulfillment costs represent those costs incurred in operating and staffing our fulfillment and customer service centers, including costs attributable to buying, receiving, inspecting, and warehousing inventories; picking, packaging, and preparing customer orders for shipment; payment processing and related transaction costs, including costs associated with our guarantee for certain seller transactions; responding to inquiries from customers; and supply chain management for our manufactured electronic devices. Fulfillment costs also include amounts paid to third parties that assist us in fulfillment and customer service operations. | |
Marketing | ' |
Marketing | |
Marketing costs consist primarily of targeted online advertising, television advertising, public relations expenditures, and payroll and related expenses for personnel engaged in marketing, business development, and selling activities. We pay commissions to participants in our Associates program when their customer referrals result in product sales and classify such costs as “Marketing” on our consolidated statements of operations. We also participate in cooperative advertising arrangements with certain of our vendors, and other third parties. | |
Advertising and other promotional costs are expensed as incurred and were $2.4 billion, $2.0 billion, and $1.4 billion in 2013, 2012, and 2011. Prepaid advertising costs were not significant as of December 31, 2013 and 2012. | |
Technology and Content | ' |
Technology and Content | |
Technology and content expenses consist principally of technology infrastructure expenses and payroll and related expenses for employees involved in application, product, and platform development, category expansion, editorial content, buying, merchandising selection, systems support, and initiatives to expand our ecosystem of digital products and services, as well as costs associated with AWS. | |
Technology and content costs are expensed as incurred, except for certain costs relating to the development of internal-use software and website development, including software used to upgrade and enhance our websites and applications supporting our business, which are capitalized and amortized over two years. | |
General and Administrative | ' |
General and Administrative | |
General and administrative expenses consist of payroll and related expenses for employees involved in general corporate functions, including accounting, finance, tax, legal, and human resources, among others; costs associated with use by these functions of facilities and equipment, such as depreciation expense and rent; professional fees and litigation costs; and other general corporate costs. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
Compensation cost for all stock awards expected to vest is measured at fair value on the date of grant and recognized over the service period. The fair value of restricted stock units is determined based on the number of shares granted and the quoted price of our common stock. Such value is recognized as expense over the service period, net of estimated forfeitures, using the accelerated method. The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. We consider many factors when estimating expected forfeitures, including employee class, economic environment, and historical experience. | |
Other Operating Expense (Income), Net | ' |
Other Operating Expense (Income), Net | |
Other operating expense (income), net, consists primarily of intangible asset amortization expense and expenses related to legal settlements. | |
Other Income (Expense), Net | ' |
Other Income (Expense), Net | |
Other income (expense), net, consists primarily of foreign currency gains and losses of $(137) million, $(95) million, and $64 million in 2013, 2012, and 2011, and realized gains and losses on marketable securities sales of $(1) million, $10 million, and $4 million in 2013, 2012, and 2011. | |
Income Taxes | ' |
Income Taxes | |
Income tax expense includes U.S. and international income taxes. Except as required under U.S. tax law, we do not provide for U.S. taxes on our undistributed earnings of foreign subsidiaries that have not been previously taxed since we intend to invest such undistributed earnings indefinitely outside of the U.S. If our intent changes or if these funds are needed for our U.S. operations, we would be required to accrue or pay U.S. taxes on some or all of these undistributed earnings. Undistributed earnings of foreign subsidiaries that are indefinitely invested outside of the U.S were $2.5 billion as of December 31, 2013. Determination of the unrecognized deferred tax liability that would be incurred if such amounts were repatriated is not practicable. | |
Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. | |
Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent we believe a portion will not be realized. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent cumulative earnings experience and expectations of future taxable income and capital gains by taxing jurisdiction, the carry-forward periods available to us for tax reporting purposes, and other relevant factors. We allocate our valuation allowance to current and long-term deferred tax assets on a pro-rata basis. | |
We utilize a two-step approach to recognizing and measuring uncertain income tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. We include interest and penalties related to our tax contingencies in income tax expense. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: | |
Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. | |
Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | |
Level 3—Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. | |
We measure the fair value of money market funds and equity securities based on quoted prices in active markets for identical assets or liabilities. All other financial instruments were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. We did not hold any cash, cash equivalents, or marketable securities categorized as Level 3 as of December 31, 2013, or December 31, 2012. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
We classify all highly liquid instruments with an original maturity of three months or less at the time of purchase as cash equivalents. | |
Inventories | ' |
Inventories | |
Inventories, consisting of products available for sale, are primarily accounted for using the FIFO method, and are valued at the lower of cost or market value. This valuation requires us to make judgments, based on currently-available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. | |
We provide Fulfillment by Amazon services in connection with certain of our sellers’ programs. Third-party sellers maintain ownership of their inventory, regardless of whether fulfillment is provided by us or the third-party sellers, and therefore these products are not included in our inventories. | |
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 vendor and customer receivables. As of December 31, 2013 and 2012, vendor receivables, net, were $1.3 billion and $1.1 billion, and customer receivables, net, were $1.7 billion and $1.5 billion. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts | |
We estimate losses on receivables based on known troubled accounts and historical experience of losses incurred. Receivables are considered impaired and written-off when it is probable that all contractual payments due will not be collected in accordance with the terms of the agreement. The allowance for doubtful accounts was $153 million, $116 million, and $82 million as of December 31, 2013, 2012, and 2011. Additions to the allowance were $172 million, $136 million, and $87 million, and deductions to the allowance were $135 million, $102 million, and $82 million as of December 31, 2013, 2012, and 2011. | |
Internal-use Software and Website Development | ' |
Internal-use Software and Website Development | |
Costs incurred to develop software for internal use and our websites are capitalized and amortized over the estimated useful life of the software. Costs related to design or maintenance of internal-use software and website development are expensed as incurred. For the years ended 2013, 2012, and 2011, we capitalized $581 million (including $87 million of stock-based compensation), $454 million (including $74 million of stock-based compensation), and $307 million (including $51 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $451 million, $327 million, and $236 million for 2013, 2012, and 2011. | |
Property and Equipment, Net | ' |
Property and Equipment, Net | |
Property and equipment are stated at cost less accumulated depreciation. Property includes buildings and land that we own, along with property we have acquired under build-to-suit, financing, and capital lease arrangements. Equipment includes assets such as furniture and fixtures, heavy equipment, servers and networking equipment, and internal-use software and website development. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets (generally the lesser of 40 years or the remaining life of the underlying building, two years for assets such as internal-use software, three years for our servers, five years for networking equipment, five years for furniture and fixtures, and ten years for heavy equipment). Depreciation expense is classified within the corresponding operating expense categories on our consolidated statements of operations. | |
Leases and Asset Retirement Obligations | ' |
Leases and Asset Retirement Obligations | |
We categorize leases at their inception as either operating or capital leases. On certain of our lease agreements, we may receive rent holidays and other incentives. We recognize lease costs on a straight-line basis without regard to deferred payment terms, such as rent holidays that defer the commencement date of required payments. Additionally, incentives we receive are treated as a reduction of our costs over the term of the agreement. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the non-cancellable term of the lease. | |
We establish assets and liabilities for the estimated construction costs incurred under build-to-suit lease arrangements to the extent we are involved in the construction of structural improvements or take construction risk prior to commencement of a lease. Upon occupancy of facilities under build-to-suit leases, we assess whether these arrangements qualify for sales recognition under the sale-leaseback accounting guidance. If we continue to be the deemed owner, the facilities are accounted for as financing leases. | |
We establish assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated retirement costs. | |
Goodwill | ' |
Goodwill | |
We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value or qualitative factors indicate that it is more likely than not that goodwill is impaired, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. We estimate the fair value of the reporting units using discounted cash flows. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on expected category expansion, pricing, market segment share, and general economic conditions. | |
We conduct our annual impairment test as of October 1 of each year, and have determined there to be no impairment for any of the periods presented. There were no triggering events identified from the date of our assessment through December 31, 2013 that would require an update to our annual impairment test. See “Note 4—Acquisitions, Goodwill, and Acquired Intangible Assets.” | |
Other Assets | ' |
Other Assets | |
Included in “Other assets” on our consolidated balance sheets are amounts primarily related to acquired intangible assets, net of amortization; digital video content, net of amortization; long-term deferred tax assets; certain equity investments; marketable securities restricted for longer than one year, the majority of which are attributable to collateralization of bank guarantees and debt related to our international operations; and intellectual property rights, net of amortization. | |
Content Costs | ' |
Content Costs | |
We obtain digital video content through licensing agreements that have a wide range of licensing provisions and generally have terms from one to five years with fixed payment schedules. When the license fee for a specific movie or television title is determinable or reasonably estimable and available for streaming, we recognize an asset representing the fee per title and a corresponding liability for the amounts owed. We relieve the liability as payments are made and we amortize the asset as cost of sales on a straight-line basis over each title’s contractual window of availability, which typically ranges from six months to five years. If we are unable to reasonably estimate the cost per title, no asset or liability is recorded and licensing costs are expensed as incurred. | |
Investments | ' |
Investments | |
We generally invest our excess cash in investment grade short- to intermediate-term fixed income securities and AAA-rated money market funds. Such investments are included in “Cash and cash equivalents,” or “Marketable securities” on the accompanying consolidated balance sheets, classified as available-for-sale, and reported at fair value with unrealized gains and losses included in “Accumulated other comprehensive loss.” | |
Equity investments are accounted for using the equity method of accounting if the investment gives us the ability to exercise significant influence, but not control, over an investee. The total of our investments in equity-method investees, including identifiable intangible assets, deferred tax liabilities, and goodwill, is included within “Other assets” on our consolidated balance sheets. Our share of the earnings or losses as reported by equity-method investees, amortization of the related intangible assets, and related gains or losses, if any, are classified as “Equity-method investment activity, net of tax” on our consolidated statements of operations. Our share of the net income or loss of our equity-method investees includes operating and non-operating gains and charges, which can have a significant impact on our reported equity-method investment activity and the carrying value of those investments. In the event that net losses of the investee reduce our equity-method investment carrying amount to zero, additional net losses may be recorded if other investments in the investee, not accounted for under the equity method, are at-risk even if we have not committed to provide financial support to the investee. We regularly evaluate these investments, which are not carried at fair value, for other-than-temporary impairment. We also consider whether our equity-method investments generate sufficient cash flows from their operating or financing activities to meet their obligations and repay their liabilities when they come due. | |
We record purchases, including incremental purchases, of shares in equity-method investees at cost. Reductions in our ownership percentage of an investee, including through dilution, are generally valued at fair value, with the difference between fair value and our recorded cost reflected as a gain or loss in our equity-method investment activity. In the event we no longer have the ability to exercise significant influence over an equity-method investee, we would discontinue accounting for the investment under the equity method. | |
Equity investments without readily determinable fair values for which we do not have the ability to exercise significant influence are accounted for using the cost method of accounting and classified as “Other assets” on our consolidated balance sheets. Under the cost method, investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions, and additional investments. | |
Equity investments that have readily determinable fair values are classified as available-for-sale and are included in “Marketable securities” in our consolidated balance sheets and are recorded at fair value with unrealized gains and losses, net of tax, included in “Accumulated other comprehensive loss.” | |
We periodically evaluate whether declines in fair values of our investments below their book value are other-than-temporary. This evaluation consists of several qualitative and quantitative factors regarding the severity and duration of the unrealized loss as well as our ability and intent to hold the investment until a forecasted recovery occurs. Additionally, we assess whether we have plans to sell the security or it is more likely than not we will be required to sell any investment before recovery of its amortized cost basis. Factors considered include quoted market prices; recent financial results and operating trends; implied values from any recent transactions or offers of investee securities; credit quality of debt instrument issuers; other publicly available information that may affect the value of our investments; duration and severity of the decline in value; and our strategy and intentions for holding the investment. | |
Long-Lived Assets | ' |
Long-Lived Assets | |
Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. | |
For long-lived assets used in operations, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and estimated fair value. Long-lived assets are considered held for sale when certain criteria are met, including when management has committed to a plan to sell the asset, the asset is available for sale in its immediate condition, and the sale is probable within one year of the reporting date. Assets held for sale are reported at the lower of cost or fair value less costs to sell. Assets held for sale were not significant as of December 31, 2013 or 2012. | |
Accrued Expenses and Other | ' |
Accrued Expenses and Other | |
Included in “Accrued expenses and other” as of December 31, 2013 and 2012 were liabilities of $1.4 billion and $1.1 billion for unredeemed gift cards. We reduce the liability for a gift card when redeemed by a customer. If a gift card is not redeemed, we recognize revenue when it expires or when the likelihood of its redemption becomes remote, generally two years from the date of issuance. | |
Unearned Revenue | ' |
Unearned Revenue | |
Unearned revenue is recorded when payments are received in advance of performing our service obligations and is recognized over the service period. Unearned revenue primarily relates to Amazon Prime memberships and AWS. | |
Foreign Currency | ' |
Foreign Currency | |
We have internationally-focused websites for the United Kingdom, Germany, France, Japan, Canada, China, Italy, Spain, Brazil, India, Mexico, and Australia. Net sales generated from these websites, as well as most of the related expenses directly incurred from those operations, are denominated in local functional currencies. The functional currency of our subsidiaries that either operate or support these websites is the same as the local currency. Assets and liabilities of these subsidiaries are translated into U.S. Dollars at period-end exchange rates, and revenues and expenses are translated at average rates prevailing throughout the period. Translation adjustments are included in “Accumulated other comprehensive loss,” a separate component of stockholders’ equity, and in the “Foreign-currency effect on cash and cash equivalents,” on our consolidated statements of cash flows. Transaction gains and losses including intercompany transactions denominated in a currency other than the functional currency of the entity involved are included in “Other income (expense), net” on our consolidated statements of operations. In connection with the settlement and remeasurement of intercompany balances, we recorded gains (losses) of $(84) million, $(95) million, and $70 million in 2013, 2012, and 2011. |
Description_of_Business_and_Ac2
Description of Business and Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Weighted Average Number of Shares | ' | ||||||||
The following table shows the calculation of diluted shares (in millions): | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Shares used in computation of basic earnings per share | 457 | 453 | 453 | ||||||
Total dilutive effect of outstanding stock awards | 8 | — | 8 | ||||||
Shares used in computation of diluted earnings per share | 465 | 453 | 461 | ||||||
Cash_Cash_Equivalents_and_Mark1
Cash, Cash Equivalents, and Marketable Securities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Fair Value by Balance Sheet Grouping | ' | |||||||||||||||
The following table summarizes, by major security type, our cash, cash equivalents, and marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in millions): | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Cost or | Gross | Gross | Total | |||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Cash | $ | 3,008 | $ | — | $ | — | $ | 3,008 | ||||||||
Level 1 securities: | ||||||||||||||||
Money market funds | 5,914 | — | — | 5,914 | ||||||||||||
Equity securities | 3 | 1 | — | 4 | ||||||||||||
Level 2 securities: | ||||||||||||||||
Foreign government and agency securities | 757 | 2 | (1 | ) | 758 | |||||||||||
U.S. government and agency securities | 2,224 | 1 | (3 | ) | 2,222 | |||||||||||
Corporate debt securities | 739 | 3 | (1 | ) | 741 | |||||||||||
Asset-backed securities | 65 | — | — | 65 | ||||||||||||
Other fixed income securities | 36 | — | — | 36 | ||||||||||||
$ | 12,746 | $ | 7 | $ | (5 | ) | $ | 12,748 | ||||||||
Less: Restricted cash, cash equivalents, and marketable securities (1) | (301 | ) | ||||||||||||||
Total cash, cash equivalents, and marketable securities | $ | 12,447 | ||||||||||||||
December 31, 2012 | ||||||||||||||||
Cost or | Gross | Gross | Total | |||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Cash | $ | 2,595 | $ | — | $ | — | $ | 2,595 | ||||||||
Level 1 securities: | ||||||||||||||||
Money market funds | 5,561 | — | — | 5,561 | ||||||||||||
Equity securities | 2 | — | — | 2 | ||||||||||||
Level 2 securities: | ||||||||||||||||
Foreign government and agency securities | 763 | 9 | — | 772 | ||||||||||||
U.S. government and agency securities | 1,809 | 3 | (2 | ) | 1,810 | |||||||||||
Corporate debt securities | 719 | 6 | — | 725 | ||||||||||||
Asset-backed securities | 49 | — | — | 49 | ||||||||||||
Other fixed income securities | 33 | — | — | 33 | ||||||||||||
$ | 11,531 | $ | 18 | $ | (2 | ) | $ | 11,547 | ||||||||
Less: Restricted cash, cash equivalents, and marketable securities (1) | (99 | ) | ||||||||||||||
Total cash, cash equivalents, and marketable securities | $ | 11,448 | ||||||||||||||
___________________ | ||||||||||||||||
-1 | We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable securities as collateral for standby and trade letters of credit, guarantees, debt, and real estate lease agreements. We classify cash 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 8—Commitments and Contingencies.” | |||||||||||||||
Realized Gain (Loss) on Investments | ' | |||||||||||||||
The following table summarizes gross gains and gross losses realized on sales of available-for-sale marketable securities (in millions): | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Realized gains | $ | 6 | $ | 20 | $ | 15 | ||||||||||
Realized losses | (7 | ) | 10 | 11 | ||||||||||||
Investments Classified by Contractual Maturity Date | ' | |||||||||||||||
The following table summarizes the contractual maturities of our cash equivalent and marketable fixed income securities as of December 31, 2013 (in millions): | ||||||||||||||||
Amortized | Estimated | |||||||||||||||
Cost | Fair Value | |||||||||||||||
Due within one year | $ | 7,226 | $ | 7,227 | ||||||||||||
Due after one year through five years | 2,115 | 2,118 | ||||||||||||||
Due after five years through ten years | 133 | 132 | ||||||||||||||
Due after ten years | 261 | 259 | ||||||||||||||
$ | 9,735 | $ | 9,736 | |||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment at Cost | ' | |||||||
Property and equipment, at cost, consisted of the following (in millions): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Gross property and equipment (1): | ||||||||
Land and buildings | $ | 4,584 | $ | 2,966 | ||||
Equipment and internal-use software (2) | 9,274 | 6,228 | ||||||
Other corporate assets | 231 | 174 | ||||||
Construction in progress | 720 | 214 | ||||||
Gross property and equipment | 14,809 | 9,582 | ||||||
Total accumulated depreciation (1) | 3,860 | 2,522 | ||||||
Total property and equipment, net | $ | 10,949 | $ | 7,060 | ||||
___________________ | ||||||||
-1 | Excludes the original cost and accumulated depreciation of fully-depreciated assets. | |||||||
-2 | Includes internal-use software of $1.1 billion and $866 million as of December 31, 2013 and 2012. |
Acquisitions_Goodwill_and_Acqu1
Acquisitions, Goodwill, and Acquired Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | |||||||||||||||||||||||||
The aggregate purchase price of this acquisition was allocated as follows (in millions): | ||||||||||||||||||||||||||
Purchase Price | ||||||||||||||||||||||||||
Cash paid, net of cash acquired | $ | 613 | ||||||||||||||||||||||||
Stock options assumed | 65 | |||||||||||||||||||||||||
$ | 678 | |||||||||||||||||||||||||
Allocation | ||||||||||||||||||||||||||
Goodwill | $ | 560 | ||||||||||||||||||||||||
Intangible assets (1): | ||||||||||||||||||||||||||
Marketing-related | 5 | |||||||||||||||||||||||||
Contract-based | 3 | |||||||||||||||||||||||||
Technology-based | 168 | |||||||||||||||||||||||||
Customer-related | 17 | |||||||||||||||||||||||||
193 | ||||||||||||||||||||||||||
Property and equipment | 9 | |||||||||||||||||||||||||
Deferred tax assets | 34 | |||||||||||||||||||||||||
Other assets acquired | 41 | |||||||||||||||||||||||||
Deferred tax liabilities | (81 | ) | ||||||||||||||||||||||||
Other liabilities assumed | (78 | ) | ||||||||||||||||||||||||
$ | 678 | |||||||||||||||||||||||||
___________________ | ||||||||||||||||||||||||||
-1 | Acquired intangible assets have estimated useful lives of between four and 10 years, with a weighted-average amortization period of five years. | |||||||||||||||||||||||||
The aggregate purchase price of these acquisitions was allocated as follows (in millions): | ||||||||||||||||||||||||||
Purchase Price | ||||||||||||||||||||||||||
Cash paid, net of cash acquired | $ | 637 | ||||||||||||||||||||||||
Existing equity interest | 89 | |||||||||||||||||||||||||
Indemnification holdbacks | 25 | |||||||||||||||||||||||||
Stock options assumed | 20 | |||||||||||||||||||||||||
$ | 771 | |||||||||||||||||||||||||
Allocation | ||||||||||||||||||||||||||
Goodwill | $ | 615 | ||||||||||||||||||||||||
Intangible assets (1): | ||||||||||||||||||||||||||
Marketing-related | 130 | |||||||||||||||||||||||||
Customer-related | 94 | |||||||||||||||||||||||||
Contract-based | 6 | |||||||||||||||||||||||||
230 | ||||||||||||||||||||||||||
Property and equipment | 119 | |||||||||||||||||||||||||
Deferred tax assets | 49 | |||||||||||||||||||||||||
Other assets acquired | 68 | |||||||||||||||||||||||||
Accounts payable | (65 | ) | ||||||||||||||||||||||||
Debt | (70 | ) | ||||||||||||||||||||||||
Deferred tax liabilities | (75 | ) | ||||||||||||||||||||||||
Other liabilities assumed | (100 | ) | ||||||||||||||||||||||||
$ | 771 | |||||||||||||||||||||||||
___________________ | ||||||||||||||||||||||||||
-1 | Amortization periods range from two to 10 years, with a weighted-average amortization period of eight years. | |||||||||||||||||||||||||
Business Acquisitions Pro Forma Financial Information | ' | |||||||||||||||||||||||||
The following pro forma financial information presents our results as if the Kiva acquisition had occurred at the beginning of 2011 (in millions): | ||||||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||
Net sales | $ | 61,118 | $ | 48,157 | ||||||||||||||||||||||
Net income (loss) | (2 | ) | 499 | |||||||||||||||||||||||
Summary of Goodwill Activity by Segment | ' | |||||||||||||||||||||||||
The following summarizes our goodwill activity in 2013 and 2012 by segment (in millions): | ||||||||||||||||||||||||||
North | International | Consolidated | ||||||||||||||||||||||||
America | ||||||||||||||||||||||||||
Goodwill - January 1, 2012 | $ | 1,533 | $ | 422 | $ | 1,955 | ||||||||||||||||||||
New acquisitions (1) | 403 | 184 | 587 | |||||||||||||||||||||||
Other adjustments (2) | 1 | 9 | 10 | |||||||||||||||||||||||
Goodwill - December 31, 2012 | 1,937 | 615 | 2,552 | |||||||||||||||||||||||
New acquisitions | 99 | 4 | 103 | |||||||||||||||||||||||
Other adjustments (2) | (3 | ) | 3 | — | ||||||||||||||||||||||
Goodwill - December 31, 2013 | $ | 2,033 | $ | 622 | $ | 2,655 | ||||||||||||||||||||
___________________ | ||||||||||||||||||||||||||
-1 | Primarily consists of the goodwill of Kiva. | |||||||||||||||||||||||||
-2 | Primarily consists of changes in foreign exchange. | |||||||||||||||||||||||||
Acquired Finite-Lived Intangible Assets by Major Class | ' | |||||||||||||||||||||||||
Acquired intangible assets, included within “Other assets” on our consolidated balance sheets, consist of the following (in millions): | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Weighted | Acquired | Accumulated | Acquired | Acquired | Accumulated | Acquired | ||||||||||||||||||||
Average Life | Intangibles, | Amortization (1) | Intangibles, | Intangibles, | Amortization (1) | Intangibles, | ||||||||||||||||||||
Remaining | Gross (1) | Net | Gross (1) | Net | ||||||||||||||||||||||
Marketing-related | 6.3 | $ | 429 | $ | (156 | ) | $ | 273 | $ | 422 | $ | (113 | ) | $ | 309 | |||||||||||
Contract-based | 3 | 173 | (110 | ) | 63 | 177 | (89 | ) | 88 | |||||||||||||||||
Technology- and content-based | 4.4 | 278 | (74 | ) | 204 | 231 | (30 | ) | 201 | |||||||||||||||||
Customer-related | 2.4 | 368 | (263 | ) | 105 | 332 | (205 | ) | 127 | |||||||||||||||||
Acquired intangibles (2) | 4.2 | $ | 1,248 | $ | (603 | ) | $ | 645 | $ | 1,162 | $ | (437 | ) | $ | 725 | |||||||||||
___________________ | ||||||||||||||||||||||||||
-1 | Excludes the original cost and accumulated amortization of fully-amortized intangibles. | |||||||||||||||||||||||||
-2 | Intangible assets have estimated useful lives of between one and 10 years. | |||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||||||||||||||||||||
Expected future amortization expense of acquired intangible assets as of December 31, 2013 is as follows (in millions): | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2014 | $ | 157 | ||||||||||||||||||||||||
2015 | 140 | |||||||||||||||||||||||||
2016 | 121 | |||||||||||||||||||||||||
2017 | 101 | |||||||||||||||||||||||||
2018 | 54 | |||||||||||||||||||||||||
Thereafter | 72 | |||||||||||||||||||||||||
$ | 645 | |||||||||||||||||||||||||
EquityMethod_Investments_Table
Equity-Method Investments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||
Equity Method Investments Summarized Financial Information | ' | |||||||||||
LivingSocial’s summarized condensed financial information, as provided to us by LivingSocial, is as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Statement of Operations: | ||||||||||||
Revenue | $ | 399 | $ | 455 | $ | 238 | ||||||
Operating expense | 461 | 666 | 613 | |||||||||
Impairment charge | 41 | 579 | — | |||||||||
Operating loss from continuing operations | (103 | ) | (790 | ) | (375 | ) | ||||||
Net loss from continuing operations (1) | (101 | ) | (532 | ) | (417 | ) | ||||||
Loss from discontinued operations, net of tax (2) | (82 | ) | (121 | ) | (82 | ) | ||||||
Net loss | $ | (183 | ) | $ | (653 | ) | $ | (499 | ) | |||
___________________ | ||||||||||||
-1 | The difference between operating loss from continuing operations and net loss from continuing operations for 2012 is primarily due to non-operating, non-cash gains on previously held equity positions in companies that LivingSocial acquired during Q1 2012. | |||||||||||
-2 | In November 2013, LivingSocial announced that it had reached an agreement to sell its Korean operations for $260 million. The transaction closed in January 2014. The statement of operations information above has been recast to present its Korean operations as discontinued operations. | |||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Balance Sheet: | ||||||||||||
Current assets | $ | 81 | $ | 74 | ||||||||
Non-current assets | 152 | 216 | ||||||||||
Current liabilities | 298 | 336 | ||||||||||
Non-current liabilities | 36 | 14 | ||||||||||
Redeemable stock | 315 | 205 | ||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt Obligations | ' | |||||||
The face value of our total long-term debt obligations is as follows (in millions): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
0.65% Notes due on November 27, 2015 | $ | 750 | $ | 750 | ||||
1.20% Notes due on November 29, 2017 | 1,000 | 1,000 | ||||||
2.50% Notes due on November 29, 2022 | 1,250 | 1,250 | ||||||
Other long-term debt | 967 | 691 | ||||||
Total debt | 3,967 | 3,691 | ||||||
Less current portion of long-term debt | (753 | ) | (579 | ) | ||||
Face value of long-term debt | $ | 3,214 | $ | 3,112 | ||||
Future Principal Payments for Debt | ' | |||||||
As of December 31, 2013, future principal payments for debt were as follows (in millions): | ||||||||
Year Ended December 31, | ||||||||
2014 | $ | 753 | ||||||
2015 | 853 | |||||||
2016 | 36 | |||||||
2017 | 1,037 | |||||||
2018 | 38 | |||||||
Thereafter | 1,250 | |||||||
$ | 3,967 | |||||||
Other_LongTerm_Liabilities_Tab
Other Long-Term Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Other Liabilities Table Disclosure | ' | ||||||||
Our other long-term liabilities are summarized as follows (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Long-term capital lease obligations | $ | 1,435 | $ | 737 | |||||
Long-term financing lease obligations | 555 | 9 | |||||||
Construction liabilities | 385 | 87 | |||||||
Tax contingencies | 457 | 336 | |||||||
Long-term deferred tax liabilities | 571 | 476 | |||||||
Other | 839 | 632 | |||||||
$ | 4,242 | $ | 2,277 | ||||||
Schedule of Capital Lease Obligations | ' | ||||||||
Long-term capital lease obligations are as follows (in millions): | |||||||||
31-Dec-13 | |||||||||
Gross capital lease obligations | $ | 2,437 | |||||||
Less imputed interest | (47 | ) | |||||||
Present value of net minimum lease payments | 2,390 | ||||||||
Less current portion of capital lease obligations | (955 | ) | |||||||
Total long-term capital lease obligations | $ | 1,435 | |||||||
Schedule of Finance Lease Obligations | ' | ||||||||
Long-term finance lease obligations are as follows (in millions): | |||||||||
31-Dec-13 | |||||||||
Gross financing lease obligations | $ | 783 | |||||||
Less imputed interest | (200 | ) | |||||||
Present value of net minimum lease payments | 583 | ||||||||
Less current portion of financing lease obligations | (28 | ) | |||||||
Total long-term financing lease obligations | $ | 555 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Commitments Disclosure | ' | |||||||||||||||||||||||||||
The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations, as of December 31, 2013 (in millions): | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Operating and capital commitments: | ||||||||||||||||||||||||||||
Debt principal and interest | $ | 835 | $ | 906 | $ | 81 | $ | 1,081 | $ | 69 | $ | 1,375 | $ | 4,347 | ||||||||||||||
Capital leases, including interest | 963 | 883 | 361 | 71 | 42 | 117 | 2,437 | |||||||||||||||||||||
Financing lease obligations, including interest | 49 | 48 | 52 | 52 | 53 | 529 | 783 | |||||||||||||||||||||
Operating leases | 752 | 654 | 604 | 539 | 470 | 2,116 | 5,135 | |||||||||||||||||||||
Unconditional purchase obligations (1) | 539 | 386 | 80 | 37 | 29 | 27 | 1,098 | |||||||||||||||||||||
Other commitments (2) (3) | 746 | 275 | 167 | 137 | 110 | 1,194 | 2,629 | |||||||||||||||||||||
Total commitments | $ | 3,884 | $ | 3,152 | $ | 1,345 | $ | 1,917 | $ | 773 | $ | 5,358 | $ | 16,429 | ||||||||||||||
___________________ | ||||||||||||||||||||||||||||
-1 | Includes unconditional purchase obligations related to agreements to acquire and license digital video content that represent long-term liabilities or are not reflected on the consolidated balance sheets. For those agreements with variable terms, we do not estimate what the total obligation may be beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified. | |||||||||||||||||||||||||||
-2 | Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that have not been placed in service. | |||||||||||||||||||||||||||
-3 | Excludes $407 million of tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Nonvested Restricted Stock Units Activity | ' | ||||||||||||||||||||
The following table summarizes our restricted stock unit activity (in millions): | |||||||||||||||||||||
Number of Units | Weighted Average | ||||||||||||||||||||
Grant-Date | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Outstanding as of January 1, 2011 | 14 | $ | 96 | ||||||||||||||||||
Units granted | 5.4 | 193 | |||||||||||||||||||
Units vested | (5.1 | ) | 73 | ||||||||||||||||||
Units forfeited | (1.2 | ) | 122 | ||||||||||||||||||
Outstanding as of December 31, 2011 | 13.1 | 143 | |||||||||||||||||||
Units granted | 8.2 | 209 | |||||||||||||||||||
Units vested | (4.2 | ) | 110 | ||||||||||||||||||
Units forfeited | (1.7 | ) | 168 | ||||||||||||||||||
Outstanding as of December 31, 2012 | 15.4 | 184 | |||||||||||||||||||
Units granted | 7.2 | 283 | |||||||||||||||||||
Units vested | (4.5 | ) | 160 | ||||||||||||||||||
Units forfeited | (1.8 | ) | 209 | ||||||||||||||||||
Outstanding as of December 31, 2013 | 16.3 | $ | 233 | ||||||||||||||||||
Nonvested Share Activity | ' | ||||||||||||||||||||
Scheduled vesting for outstanding restricted stock units as of December 31, 2013, is as follows (in millions): | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||
Scheduled vesting—restricted stock units | 5.4 | 5.8 | 3.2 | 1.6 | 0.2 | 0.1 | 16.3 | ||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Changes in Composition of Accumulated Other Comprehensive Income or Loss | ' | ||||||||||||
Changes in the composition of accumulated other comprehensive loss for 2013, 2012, and 2011 are as follows (in millions): | |||||||||||||
Foreign currency | Unrealized gains on | Total | |||||||||||
translation | available-for-sale | ||||||||||||
adjustments | securities | ||||||||||||
Balances as of January 1, 2011 | $ | (203 | ) | $ | 13 | $ | (190 | ) | |||||
Other comprehensive income (loss) | (123 | ) | (3 | ) | (126 | ) | |||||||
Balances as of December 31, 2011 | (326 | ) | 10 | (316 | ) | ||||||||
Other comprehensive income | 76 | 1 | 77 | ||||||||||
Balances as of December 31, 2012 | (250 | ) | 11 | (239 | ) | ||||||||
Other comprehensive income (loss) | 63 | (9 | ) | 54 | |||||||||
Balances as of December 31, 2013 | $ | (187 | ) | $ | 2 | $ | (185 | ) | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Components of Income Tax Expense (Benefit) | ' | |||||||||||
The components of the provision for income taxes, net are as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current taxes: | ||||||||||||
U.S. and state | $ | 144 | $ | 562 | $ | 103 | ||||||
International | 173 | 131 | 52 | |||||||||
Current taxes | 317 | 693 | 155 | |||||||||
Deferred taxes: | ||||||||||||
U.S. and state | (133 | ) | (156 | ) | 157 | |||||||
International | (23 | ) | (109 | ) | (21 | ) | ||||||
Deferred taxes | (156 | ) | (265 | ) | 136 | |||||||
Provision for income taxes, net | $ | 161 | $ | 428 | $ | 291 | ||||||
Income before Income Tax, Domestic and Foreign | ' | |||||||||||
U.S. and international components of income before income taxes are as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S. | $ | 704 | $ | 882 | $ | 658 | ||||||
International | (198 | ) | (338 | ) | 276 | |||||||
Income before income taxes | $ | 506 | $ | 544 | $ | 934 | ||||||
Effective Income Tax Rate Reconciliation | ' | |||||||||||
The items accounting for differences between income taxes computed at the federal statutory rate and the provision recorded for income taxes are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
Effect of: | ||||||||||||
Impact of foreign tax differential | (8.1 | ) | 31.5 | (8.4 | ) | |||||||
State taxes, net of federal benefits | 2.7 | 0.2 | 1.5 | |||||||||
Tax credits | (16.6 | ) | (4.4 | ) | (3.2 | ) | ||||||
Nondeductible compensation | 16.9 | 13.3 | 4.9 | |||||||||
Domestic production activities deduction | (2.1 | ) | — | — | ||||||||
Other, net | 4 | 3 | 1.4 | |||||||||
Total | 31.8 | % | 78.6 | % | 31.2 | % | ||||||
Deferred Tax Assets and Liabilities | ' | |||||||||||
Deferred income tax assets and liabilities are as follows (in millions): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Net operating losses U.S. - Federal/States (1) | $ | 53 | $ | 47 | ||||||||
Net operating losses foreign (2) | 427 | 289 | ||||||||||
Accrued liabilities, reserves, & other expenses | 590 | 482 | ||||||||||
Stock-based compensation | 396 | 281 | ||||||||||
Deferred revenue | 249 | 129 | ||||||||||
Assets held for investment | 164 | 129 | ||||||||||
Other items | 177 | 133 | ||||||||||
Tax credits (3) | 107 | 12 | ||||||||||
Total gross deferred tax assets | 2,163 | 1,502 | ||||||||||
Less valuation allowance (4) | (698 | ) | (415 | ) | ||||||||
Deferred tax assets, net of valuation allowance | 1,465 | 1,087 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation & amortization | (1,021 | ) | (698 | ) | ||||||||
Acquisition related intangible assets | (201 | ) | (274 | ) | ||||||||
Other items | (16 | ) | (29 | ) | ||||||||
Net deferred tax assets, net of valuation allowance | $ | 227 | $ | 86 | ||||||||
___________________ | ||||||||||||
-1 | Excluding $81 million and $9 million of deferred tax assets as of December 31, 2013 and 2012, related to net operating losses that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. | |||||||||||
-2 | Excluding $2 million and $2 million of deferred tax assets as of December 31, 2013 and 2012, related to net operating losses that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. | |||||||||||
-3 | Excluding $227 million and $146 million of deferred tax assets as of December 31, 2013 and 2012, related to tax credits that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. | |||||||||||
-4 | Relates primarily to deferred tax assets that would only be realizable upon the generation of net income in certain foreign taxing jurisdictions and future capital gains. | |||||||||||
Summary of Income Tax Contingencies | ' | |||||||||||
The reconciliation of our tax contingencies is as follows (in millions): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Gross tax contingencies – January 1 | $ | 294 | $ | 229 | $ | 213 | ||||||
Gross increases to tax positions in prior periods | 78 | 91 | 22 | |||||||||
Gross decreases to tax positions in prior periods | (18 | ) | (47 | ) | (3 | ) | ||||||
Gross increases to current period tax positions | 54 | 26 | 4 | |||||||||
Audit settlements paid | (1 | ) | (4 | ) | (1 | ) | ||||||
Lapse of statute of limitations | — | (1 | ) | (6 | ) | |||||||
Gross tax contingencies – December 31 (1) | $ | 407 | $ | 294 | $ | 229 | ||||||
___________________ | ||||||||||||
-1 | As of December 31, 2013, we had $407 million of tax contingencies, of which $346 million, if fully recognized, would decrease our effective tax rate. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Schedule of Segment Reporting Information by Segment | ' | |||||||||||
Information on reportable segments and reconciliation to consolidated net income (loss) is as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
North America | ||||||||||||
Net sales | $ | 44,517 | $ | 34,813 | $ | 26,705 | ||||||
Segment operating expenses (1) | 42,631 | 33,221 | 25,772 | |||||||||
Segment operating income | $ | 1,886 | $ | 1,592 | $ | 933 | ||||||
International | ||||||||||||
Net sales | $ | 29,935 | $ | 26,280 | $ | 21,372 | ||||||
Segment operating expenses (1) | 29,828 | 26,204 | 20,732 | |||||||||
Segment operating income | $ | 107 | $ | 76 | $ | 640 | ||||||
Consolidated | ||||||||||||
Net sales | $ | 74,452 | $ | 61,093 | $ | 48,077 | ||||||
Segment operating expenses (1) | 72,459 | 59,425 | 46,504 | |||||||||
Segment operating income | 1,993 | 1,668 | 1,573 | |||||||||
Stock-based compensation | (1,134 | ) | (833 | ) | (557 | ) | ||||||
Other operating income (expense), net | (114 | ) | (159 | ) | (154 | ) | ||||||
Income from operations | 745 | 676 | 862 | |||||||||
Total non-operating income (expense) | (239 | ) | (132 | ) | 72 | |||||||
Provision for income taxes | (161 | ) | (428 | ) | (291 | ) | ||||||
Equity-method investment activity, net of tax | (71 | ) | (155 | ) | (12 | ) | ||||||
Net income (loss) | $ | 274 | $ | (39 | ) | $ | 631 | |||||
___________________ | ||||||||||||
-1 | Represents operating expenses, excluding stock-based compensation and “Other operating expense (income), net,” which are not allocated to segments. | |||||||||||
Revenue from External Customers by Products and Services | ' | |||||||||||
Net sales of similar products and services were as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net Sales: | ||||||||||||
Media | $ | 21,716 | $ | 19,942 | $ | 17,779 | ||||||
Electronics and other general merchandise | 48,802 | 38,628 | 28,712 | |||||||||
Other (1) | 3,934 | 2,523 | 1,586 | |||||||||
$ | 74,452 | $ | 61,093 | $ | 48,077 | |||||||
___________________ | ||||||||||||
-1 | Includes sales from non-retail activities, such as AWS, advertising services, and our co-branded credit card agreements. | |||||||||||
Net Sales Attributed to Foreign Countries | ' | |||||||||||
Net sales attributed to foreign countries are as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Germany | $ | 10,535 | $ | 8,732 | $ | 7,230 | ||||||
Japan | 7,639 | 7,800 | 6,576 | |||||||||
United Kingdom | 7,291 | 6,478 | 5,348 | |||||||||
Total Assets, Property, Plant, and Equipment And Additions, by Segment | ' | |||||||||||
Total assets, property and equipment, net, and total property and equipment additions, by geography, reconciled to consolidated amounts are (in millions): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
North America | ||||||||||||
Total assets | $ | 26,108 | $ | 20,703 | ||||||||
Property and equipment, net | 8,447 | 5,481 | ||||||||||
Total property and equipment additions | 4,837 | 3,348 | ||||||||||
International | ||||||||||||
Total assets | $ | 14,051 | $ | 11,852 | ||||||||
Property and equipment, net | 2,502 | 1,579 | ||||||||||
Total property and equipment additions | 1,536 | 969 | ||||||||||
Consolidated | ||||||||||||
Total assets | $ | 40,159 | $ | 32,555 | ||||||||
Property and equipment, net | 10,949 | 7,060 | ||||||||||
Total property and equipment additions | 6,373 | 4,317 | ||||||||||
Depreciation Expense by Segment | ' | |||||||||||
Depreciation expense, by segment, is as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
North America | $ | 1,863 | $ | 1,229 | $ | 795 | ||||||
International | 597 | 424 | 239 | |||||||||
Consolidated | $ | 2,460 | $ | 1,653 | $ | 1,034 | ||||||
Quarterly_Results_Unaudited_Ta
Quarterly Results (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information | ' | ||||||||||||||||
Unaudited quarterly results are as follows (in millions, except per share data): | |||||||||||||||||
Year Ended December 31, 2013 (1) | |||||||||||||||||
Fourth | Third | Second | First | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Net sales | $ | 25,587 | $ | 17,092 | $ | 15,704 | $ | 16,070 | |||||||||
Income (loss) from operations | $ | 510 | $ | (25 | ) | $ | 79 | $ | 181 | ||||||||
Income (loss) before income taxes | $ | 451 | $ | (43 | ) | $ | 17 | $ | 81 | ||||||||
Provision (benefit) for income taxes | $ | 179 | $ | (12 | ) | $ | 13 | $ | (18 | ) | |||||||
Net income (loss) | $ | 239 | $ | (41 | ) | $ | (7 | ) | $ | 82 | |||||||
Basic earnings per share | $ | 0.52 | $ | (0.09 | ) | $ | (0.02 | ) | $ | 0.18 | |||||||
Diluted earnings per share | $ | 0.51 | $ | (0.09 | ) | $ | (0.02 | ) | $ | 0.18 | |||||||
Shares used in computation of earnings per share: | |||||||||||||||||
Basic | 458 | 457 | 456 | 455 | |||||||||||||
Diluted | 467 | 457 | 456 | 463 | |||||||||||||
Year Ended December 31, 2012 (1) | |||||||||||||||||
Fourth | Third | Second | First | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Net sales | $ | 21,268 | $ | 13,806 | $ | 12,834 | $ | 13,185 | |||||||||
Income (loss) from operations | $ | 405 | $ | (28 | ) | $ | 107 | $ | 192 | ||||||||
Income (loss) before income taxes | $ | 337 | $ | (22 | ) | $ | 146 | $ | 84 | ||||||||
Provision for income taxes | $ | 194 | $ | 83 | $ | 109 | $ | 43 | |||||||||
Net income (loss) | $ | 97 | $ | (274 | ) | $ | 7 | $ | 130 | ||||||||
Basic earnings per share | $ | 0.21 | $ | (0.60 | ) | $ | 0.02 | $ | 0.29 | ||||||||
Diluted earnings per share | $ | 0.21 | $ | (0.60 | ) | $ | 0.01 | $ | 0.28 | ||||||||
Shares used in computation of earnings per share: | |||||||||||||||||
Basic | 454 | 452 | 451 | 453 | |||||||||||||
Diluted | 461 | 452 | 458 | 460 | |||||||||||||
___________________ | |||||||||||||||||
-1 | The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. |
Description_of_Business_and_Ac3
Description of Business and Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment | |||
Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of principal segments | 2 | ' | ' |
Allowance for returns | $167,000,000 | $198,000,000 | $155,000,000 |
Additions to allowance for returns | 907,000,000 | 702,000,000 | 542,000,000 |
Deductions to allowance for returns | 938,000,000 | 659,000,000 | 490,000,000 |
Advertising and other promotional costs | 2,400,000,000 | 2,000,000,000 | 1,400,000,000 |
Capitalized costs, amortization period | '2 years | ' | ' |
Foreign currency transaction gain (loss) | -137,000,000 | -95,000,000 | 64,000,000 |
Marketable securities realized gain (loss) | -1,000,000 | 10,000,000 | 4,000,000 |
Undistributed earnings of foreign subsidiaries that are indefinitely invested outside of the U.S | 2,500,000,000 | ' | ' |
Tax benefit percentage of being realized upon ultimate settlement | 50.00% | ' | ' |
Accounts receivable, net and other | 4,767,000,000 | 3,817,000,000 | ' |
Allowance for doubtful accounts | 153,000,000 | 116,000,000 | 82,000,000 |
Additions to allowance for doubtful accounts | 172,000,000 | 136,000,000 | 87,000,000 |
Deductions to allowance for doubtful accounts | 135,000,000 | 102,000,000 | 82,000,000 |
Capitalized costs associated with internal-use software and website development | 581,000,000 | 454,000,000 | 307,000,000 |
Capitalized costs associated with internal-use software and website development, stock-based compensation | 87,000,000 | 74,000,000 | 51,000,000 |
Capitalized costs associated with internal-use software and website development, amortization of previously capitalized amounts | 451,000,000 | 327,000,000 | 236,000,000 |
Estimated useful lives of assets description | 'Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets (generally the lesser of 40 years or the remaining life of the underlying building, | ' | ' |
Unredeemed gift certificates | 1,400,000,000 | 1,100,000,000 | ' |
Transaction gains and losses arising from foreign currency transactions | -84,000,000 | -95,000,000 | 70,000,000 |
Certificate without an expiration date | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Unredeemed gift certificates, period of recognition | '2 years | ' | ' |
Vendor Receivable | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Accounts receivable, net and other | 1,300,000,000 | 1,100,000,000 | ' |
Customer Receivable | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Accounts receivable, net and other | $1,700,000,000 | $1,500,000,000 | ' |
Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Cash equivalents maturity period | '3 months | ' | ' |
Building | Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of assets | '40 years | ' | ' |
Internal use Software, Content and Website Development | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of assets | '2 years | ' | ' |
Servers | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of assets | '3 years | ' | ' |
Network Equipment | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of assets | '5 years | ' | ' |
Furniture and Fixtures | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of assets | '5 years | ' | ' |
Heavy Equipment | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of assets | '10 years | ' | ' |
Digital Video Content | Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Digital video content licensing agreements term | '1 year | ' | ' |
Digital video content amortization period | '6 months | ' | ' |
Digital Video Content | Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Digital video content licensing agreements term | '5 years | ' | ' |
Digital video content amortization period | '5 years | ' | ' |
Description_of_Business_and_Ac4
Description of Business and Accounting Policies - Calculation of Diluted Shares (Detail) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Shares used in computation of basic earnings per share | 458 | [1] | 457 | [1] | 456 | [1] | 455 | [1] | 454 | [1] | 452 | [1] | 451 | [1] | 453 | [1] | 457 | 453 | 453 |
Total dilutive effect of outstanding stock awards | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 0 | 8 | ||||||||
Shares used in computation of diluted earnings per share | 467 | [1] | 457 | [1] | 456 | [1] | 463 | [1] | 461 | [1] | 452 | [1] | 458 | [1] | 460 | [1] | 465 | 453 | 461 |
[1] | The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. |
Cash_Cash_Equivalents_and_Mark2
Cash, Cash Equivalents, and Marketable Securities - Summary by Major Security Type Cash Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis and Categorized Using Fair Value Hierarchy (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ||
Total Estimated Fair Value | $12,447 | $11,448 | ||
Cash | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ||
Cost or Amortized Cost | 3,008 | 2,595 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Total Estimated Fair Value | 3,008 | 2,595 | ||
Cash, cash equivalents, and marketable securities | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ||
Cost or Amortized Cost | 12,746 | 11,531 | ||
Gross Unrealized Gains | 7 | 18 | ||
Gross Unrealized Losses | -5 | -2 | ||
Total Estimated Fair Value | 12,748 | 11,547 | ||
Restricted Cash, Cash Equivalents, and Marketable Securities | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ||
Total Estimated Fair Value | -301 | [1] | -99 | [1] |
Level 1 Securities | Money market funds | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ||
Cost or Amortized Cost | 5,914 | 5,561 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Total Estimated Fair Value | 5,914 | 5,561 | ||
Level 1 Securities | Equity securities | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ||
Cost or Amortized Cost | 3 | 2 | ||
Gross Unrealized Gains | 1 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Total Estimated Fair Value | 4 | 2 | ||
Level 2 Securities | Foreign government and agency securities | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ||
Cost or Amortized Cost | 757 | 763 | ||
Gross Unrealized Gains | 2 | 9 | ||
Gross Unrealized Losses | -1 | 0 | ||
Total Estimated Fair Value | 758 | 772 | ||
Level 2 Securities | U.S. government and agency securities | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ||
Cost or Amortized Cost | 2,224 | 1,809 | ||
Gross Unrealized Gains | 1 | 3 | ||
Gross Unrealized Losses | -3 | -2 | ||
Total Estimated Fair Value | 2,222 | 1,810 | ||
Level 2 Securities | Corporate debt securities | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ||
Cost or Amortized Cost | 739 | 719 | ||
Gross Unrealized Gains | 3 | 6 | ||
Gross Unrealized Losses | -1 | 0 | ||
Total Estimated Fair Value | 741 | 725 | ||
Level 2 Securities | Asset-backed securities | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ||
Cost or Amortized Cost | 65 | 49 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Total Estimated Fair Value | 65 | 49 | ||
Level 2 Securities | Other fixed income securities | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ||
Cost or Amortized Cost | 36 | 33 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Total Estimated Fair Value | $36 | $33 | ||
[1] | We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable securities as collateral for standby and trade letters of credit, guarantees, debt, and real estate lease agreements. We classify cash 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 8—Commitments and Contingencies.†|
Cash_Cash_Equivalents_and_Mark3
Cash, Cash Equivalents, and Marketable Securities - Gross Grains and Gross Losses Realized on Sales of Available-For-Sale Marketable Securities (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' |
Realized gains | $6 | $20 | $15 |
Realized losses | ($7) | $10 | $11 |
Cash_Cash_Equivalents_and_Mark4
Cash, Cash Equivalents, and Marketable Securities - Summary of Contractual Maturities of Cash Equivalent and Marketable Fixed Income Securities (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Investments Classified by Contractual Maturity Date [Line Items] | ' |
Amortized Cost | $9,735 |
Estimated Fair Value | 9,736 |
Due within one year | ' |
Investments Classified by Contractual Maturity Date [Line Items] | ' |
Amortized Cost | 7,226 |
Estimated Fair Value | 7,227 |
Due after one year through five years | ' |
Investments Classified by Contractual Maturity Date [Line Items] | ' |
Amortized Cost | 2,115 |
Estimated Fair Value | 2,118 |
Due after five years through ten years | ' |
Investments Classified by Contractual Maturity Date [Line Items] | ' |
Amortized Cost | 133 |
Estimated Fair Value | 132 |
Due after ten years | ' |
Investments Classified by Contractual Maturity Date [Line Items] | ' |
Amortized Cost | 261 |
Estimated Fair Value | $259 |
Property_and_Equipment_Fixed_A
Property and Equipment - Fixed Assets at Cost (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Gross property and equipment | $14,809 | [1] | $9,582 | [1] |
Total accumulated depreciation | 3,860 | [1] | 2,522 | [1] |
Total property and equipment, net | 10,949 | 7,060 | ||
Land and Buildings | ' | ' | ||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Gross property and equipment | 4,584 | [1] | 2,966 | [1] |
Equipment and Internal-use Software | ' | ' | ||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Gross property and equipment | 9,274 | [1],[2] | 6,228 | [1],[2] |
Other Corporate Assets | ' | ' | ||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Gross property and equipment | 231 | [1] | 174 | [1] |
Construction in Progress | ' | ' | ||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Gross property and equipment | $720 | [1] | $214 | [1] |
[1] | Excludes the original cost and accumulated depreciation of fully-depreciated assets. | |||
[2] | Includes internal-use software of $1.1 billion and $866 million as of December 31, 2013 and 2012. |
Property_and_Equipment_Fixed_A1
Property and Equipment - Fixed Assets at Cost (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Internal-use software | $1,100 | $866 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
Assets Held under Capital Leases | Assets Held under Capital Leases | Corporate Headquarters | Corporate Headquarters | Corporate Headquarters | ||||
Land and Buildings | Building | Land | ||||||
Property | Property | |||||||
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Payment to acquire property and equipment | $3,444,000,000 | $3,785,000,000 | $1,811,000,000 | ' | ' | $1,200,000,000 | ' | $210,000,000 |
Number of property and equipment acquired | ' | ' | ' | ' | ' | ' | 11 | 3 |
Property and equipment, estimated useful lives | ' | ' | ' | ' | ' | ' | '40 years | ' |
Depreciation expense on fixed assets including amortization | 2,460,000,000 | 1,653,000,000 | 1,034,000,000 | ' | ' | ' | ' | ' |
Amortization of fixed assets acquired under capital lease obligations | 826,000,000 | 510,000,000 | 335,000,000 | ' | ' | ' | ' | ' |
Gross assets remaining under leases | ' | ' | ' | 4,200,000,000 | 2,300,000,000 | ' | ' | ' |
Accumulated depreciation associated with leases | ' | ' | ' | 1,900,000,000 | 1,100,000,000 | ' | ' | ' |
Cash paid for interest on capital leases | 41,000,000 | 51,000,000 | 44,000,000 | ' | ' | ' | ' | ' |
Gross finance leased assets | 578,000,000 | 9,000,000 | ' | ' | ' | ' | ' | ' |
Finance leased assets, accumulated depreciation | $22,000,000 | $5,000,000 | ' | ' | ' | ' | ' | ' |
Acquisitions_Goodwill_and_Acqu2
Acquisitions Goodwill and Acquired Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | 31-May-12 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 |
Several companies | Kiva Systems, Inc | Kiva Systems, Inc | Series of Individually Immaterial Business Acquisitions | One of acquired companies | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate purchase price | ' | ' | ' | $195 | $678 | ' | $771 | ' |
Acquired goodwill | 2,655 | 2,552 | 1,955 | 103 | 560 | ' | 615 | ' |
Acquired intangible assets | ' | ' | ' | 83 | ' | ' | ' | ' |
Business acquisition, purchase price | ' | ' | ' | ' | 678 | ' | 771 | ' |
Net sales | ' | ' | ' | ' | ' | 61 | ' | ' |
Operating loss | ' | ' | ' | ' | ' | -62 | ' | ' |
Equity-method investment activity, net of tax | -71 | -155 | -12 | ' | ' | ' | ' | 6 |
Amortization expense for acquired intangibles | $168 | $163 | $149 | ' | ' | ' | ' | ' |
Acquisitions_Goodwill_and_Acqu3
Acquisitions, Goodwill, and Acquired Intangible Assets - Allocation of Aggregate Purchase Price of Acquisitions (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-12 | 31-May-12 | 31-May-12 | 31-May-12 | 31-May-12 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | ||||||||
In Millions, unless otherwise specified | Kiva Systems, Inc | Kiva Systems, Inc | Kiva Systems, Inc | Kiva Systems, Inc | Kiva Systems, Inc | Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | |||||||||||
Marketing-related | Contract-based | Technology Based | Customer-related | Marketing-related | Contract-based | Customer-related | ||||||||||||||
Purchase Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Cash paid, net of cash acquired | ' | ' | ' | $613 | ' | ' | ' | ' | $637 | ' | ' | ' | ||||||||
Existing equity interest | ' | ' | ' | ' | ' | ' | ' | ' | 89 | ' | ' | ' | ||||||||
Indemnification holdbacks | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ||||||||
Stock options assumed | ' | ' | ' | 65 | ' | ' | ' | ' | 20 | ' | ' | ' | ||||||||
Business acquisition, purchase price | ' | ' | ' | 678 | ' | ' | ' | ' | 771 | ' | ' | ' | ||||||||
Allocation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Goodwill | 2,655 | 2,552 | 1,955 | 560 | ' | ' | ' | ' | 615 | ' | ' | ' | ||||||||
Intangible assets | ' | ' | ' | 193 | 5 | [1] | 3 | [1] | 168 | [1] | 17 | [1] | 230 | [2] | 130 | [2] | 6 | [2] | 94 | [2] |
Property and equipment | ' | ' | ' | 9 | ' | ' | ' | ' | 119 | ' | ' | ' | ||||||||
Deferred tax assets | ' | ' | ' | 34 | ' | ' | ' | ' | 49 | ' | ' | ' | ||||||||
Other assets acquired | ' | ' | ' | 41 | ' | ' | ' | ' | 68 | ' | ' | ' | ||||||||
Accounts payable | ' | ' | ' | ' | ' | ' | ' | ' | -65 | ' | ' | ' | ||||||||
Debt | ' | ' | ' | ' | ' | ' | ' | ' | -70 | ' | ' | ' | ||||||||
Deferred tax liabilities | ' | ' | ' | -81 | ' | ' | ' | ' | -75 | ' | ' | ' | ||||||||
Other liabilities assumed | ' | ' | ' | -78 | ' | ' | ' | ' | -100 | ' | ' | ' | ||||||||
Business acquisition, allocation | ' | ' | ' | $678 | ' | ' | ' | ' | $771 | ' | ' | ' | ||||||||
[1] | Acquired intangible assets have estimated useful lives of between four and 10 years, with a weighted-average amortization period of five years. | |||||||||||||||||||
[2] | Amortization periods range from two to 10 years, with a weighted-average amortization period of eight years. |
Acquisitions_Goodwill_and_Acqu4
Acquisitions, Goodwill, and Acquired Intangible Assets - Allocation of Aggregate Purchase Price of Acquisitions (Parenthetical) (Detail) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | ||
Minimum | Maximum | Kiva Systems, Inc | Kiva Systems, Inc | Kiva Systems, Inc | Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | |||
Minimum | Maximum | Minimum | Maximum | |||||||
Purchase Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Acquired intangible assets estimated useful lives | ' | '1 year | '10 years | ' | '4 years | '10 years | ' | '2 years | '10 years | |
Acquired intangible assets, weighted-average amortization period (in years) | '4 years 2 months 12 days | [1] | ' | ' | '5 years | ' | ' | '8 years | ' | ' |
[1] | Intangible assets have estimated useful lives of between one and 10 years. |
Acquisitions_Goodwill_and_Acqu5
Acquisitions, Goodwill, and Acquired Intangible Assets - Business Acquisitions Pro Forma Financial Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Business Combinations [Abstract] | ' | ' |
Net sales | $61,118 | $48,157 |
Net income (loss) | ($2) | $499 |
Acquisitions_Goodwill_and_Acqu6
Acquisitions, Goodwill, and Acquired Intangible Assets - Summary of Goodwill Activity by Segment (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Goodwill [Line Items] | ' | ' | ||
Goodwill - Beginning Balance | $2,552 | $1,955 | ||
New acquisitions | 103 | 587 | [1] | |
Other adjustments | 0 | [2] | 10 | [2] |
Goodwill - Ending Balance | 2,655 | 2,552 | ||
North America | ' | ' | ||
Goodwill [Line Items] | ' | ' | ||
Goodwill - Beginning Balance | 1,937 | 1,533 | ||
New acquisitions | 99 | 403 | [1] | |
Other adjustments | -3 | [2] | 1 | [2] |
Goodwill - Ending Balance | 2,033 | 1,937 | ||
International | ' | ' | ||
Goodwill [Line Items] | ' | ' | ||
Goodwill - Beginning Balance | 615 | 422 | ||
New acquisitions | 4 | 184 | [1] | |
Other adjustments | 3 | [2] | 9 | [2] |
Goodwill - Ending Balance | $622 | $615 | ||
[1] | Primarily consists of the goodwill of Kiva. | |||
[2] | Primarily consists of changes in foreign exchange. |
Acquisitions_Goodwill_and_Acqu7
Acquisitions, Goodwill, and Acquired Intangible Assets - Acquired Intangible Assets (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Weighted Average Life Remaining | '4 years 2 months 12 days | [1] | ' | |
Acquired Intangibles, Gross | $1,248 | [1],[2] | $1,162 | [1],[2] |
Accumulated Amortization | -603 | [1],[2] | -437 | [1],[2] |
Acquired Intangibles, Net | 645 | [1] | 725 | [1] |
Marketing-related | ' | ' | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Weighted Average Life Remaining | '6 years 3 months 18 days | ' | ||
Acquired Intangibles, Gross | 429 | [2] | 422 | [2] |
Accumulated Amortization | -156 | [2] | -113 | [2] |
Acquired Intangibles, Net | 273 | 309 | ||
Contract-based | ' | ' | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Weighted Average Life Remaining | '3 years | ' | ||
Acquired Intangibles, Gross | 173 | [2] | 177 | [2] |
Accumulated Amortization | -110 | [2] | -89 | [2] |
Acquired Intangibles, Net | 63 | 88 | ||
Technology and content- based | ' | ' | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Weighted Average Life Remaining | '4 years 4 months 24 days | ' | ||
Acquired Intangibles, Gross | 278 | [2] | 231 | [2] |
Accumulated Amortization | -74 | [2] | -30 | [2] |
Acquired Intangibles, Net | 204 | 201 | ||
Customer-related | ' | ' | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Weighted Average Life Remaining | '2 years 4 months 24 days | ' | ||
Acquired Intangibles, Gross | 368 | [2] | 332 | [2] |
Accumulated Amortization | -263 | [2] | -205 | [2] |
Acquired Intangibles, Net | $105 | $127 | ||
[1] | Intangible assets have estimated useful lives of between one and 10 years. | |||
[2] | Excludes the original cost and accumulated amortization of fully-amortized intangibles. |
Acquisitions_Goodwill_and_Acqu8
Acquisitions, Goodwill, and Acquired Intangible Assets - Acquired Intangible Assets (Parenthetical) (Detail) | 1 Months Ended |
Dec. 31, 2013 | |
Minimum | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets, estimated useful life | '1 year |
Maximum | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets, estimated useful life | '10 years |
Acquisitions_Goodwill_and_Acqu9
Acquisitions, Goodwill, and Acquired Intangible Assets - Expected Future Amortization Expense of Acquired Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Business Combinations [Abstract] | ' | ' | ||
2014 | $157 | ' | ||
2015 | 140 | ' | ||
2016 | 121 | ' | ||
2017 | 101 | ' | ||
2018 | 54 | ' | ||
Thereafter | 72 | ' | ||
Acquired Intangibles, Net | $645 | [1] | $725 | [1] |
[1] | Intangible assets have estimated useful lives of between one and 10 years. |
Equity_Method_Investments_Addi
Equity Method Investments - Additional Information (Detail) (LivingSocial, USD $) | Dec. 31, 2013 | Nov. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 |
Cost-method Investments [Member] | Cost-method Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Equity investment, amount to be sold | ' | $260,000,000 | ' | ' |
Equity investment, assets held-for-sale | 146,000,000 | ' | ' | ' |
Equity investment, liabilities of assets held-for-sale | 122,000,000 | ' | ' | ' |
Equity investment, book value | 0 | ' | ' | 38,000,000 |
Investment in LivingSocial | ' | ' | $56,000,000 | ' |
Equity investment, ownership percentage | 31.00% | ' | ' | ' |
EquityMethod_Investments_Summa
Equity-Method Investments - Summarized Condensed Financial Information of LivingSocial (Detail) (LivingSocial, USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
LivingSocial | ' | ' | ' | |||
Statement of Operations: | ' | ' | ' | |||
Revenue | $399 | $455 | $238 | |||
Operating expense | 461 | 666 | 613 | |||
Impairment charge | 41 | 579 | 0 | |||
Operating loss from continuing operations | -103 | -790 | -375 | |||
Net loss from continuing operations | -101 | [1] | -532 | [1] | -417 | [1] |
Loss from discontinued operations, net of tax | -82 | [2] | -121 | [2] | -82 | [2] |
Net loss | -183 | -653 | -499 | |||
Balance Sheet: | ' | ' | ' | |||
Current assets | 81 | 74 | ' | |||
Non-current assets | 152 | 216 | ' | |||
Current liabilities | 298 | 336 | ' | |||
Non-current liabilities | 36 | 14 | ' | |||
Redeemable stock | $315 | $205 | ' | |||
[1] | The difference between operating loss from continuing operations and net loss from continuing operations for 2012 is primarily due to non-operating, non-cash gains on previously held equity positions in companies that LivingSocial acquired during Q1Â 2012. | |||||
[2] | In November 2013, LivingSocial announced that it had reached an agreement to sell its Korean operations for $260 million. The transaction closed in January 2014. The statement of operations information above has been recast to present its Korean operations as discontinued operations. |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2012 | |
tranche | |||
Debt Instrument [Line Items] | ' | ' | ' |
Carrying amount of other long term debt including current portion | $967,000,000 | $691,000,000 | ' |
Senior Notes | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Face amount | ' | ' | 3,000,000,000 |
Number of tranches of debt issued | ' | ' | 3 |
Unamortized discount | 23,000,000 | 27,000,000 | ' |
Interest payment frequency | 'semi-annually in arrears in May and November | ' | ' |
Total estimated fair value of notes | $2,900,000,000 | $3,000,000,000 | ' |
0.65% Notes due on November 27, 2015 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Effective interest yields | 0.84% | ' | ' |
1.20% Notes due on November 29, 2017 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Effective interest yields | 1.38% | ' | ' |
2.50% Notes due on November 29, 2022 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Effective interest yields | 2.66% | ' | ' |
Other Debt | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt, weighted average interest rate | 5.50% | 6.40% | ' |
LongTerm_Debt_LongTerm_Debt_Ob
Long-Term Debt - Long-Term Debt Obligations (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total debt | $3,967 | $3,691 |
Other long-term debt | 967 | 691 |
Less current portion of long-term debt | -753 | -579 |
Face value of long-term debt | 3,214 | 3,112 |
0.65% Notes due on November 27, 2015 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated interest rate | 0.65% | ' |
Total debt | 750 | 750 |
1.20% Notes due on November 29, 2017 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated interest rate | 1.20% | ' |
Total debt | 1,000 | 1,000 |
2.50% Notes due on November 29, 2022 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated interest rate | 2.50% | ' |
Total debt | $1,250 | $1,250 |
LongTerm_Debt_Future_Principal
Long-Term Debt - Future Principal Payment for Debt (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2014 | $753 | ' |
2015 | 853 | ' |
2016 | 36 | ' |
2017 | 1,037 | ' |
2018 | 38 | ' |
Thereafter | 1,250 | ' |
Total debt | $3,967 | $3,691 |
Other_Long_Term_Liabilities_Su
Other Long Term Liabilities Summary (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Liabilities [Line Items] | ' | ' |
Long-term lease obligations | $1,435 | ' |
Construction liabilities | 385 | 87 |
Tax contingencies | 457 | 336 |
Long-term deferred tax liabilities | 571 | 476 |
Other | 839 | 632 |
Other long-term liabilities | 4,242 | 2,277 |
Capital leases, including interest | ' | ' |
Other Liabilities [Line Items] | ' | ' |
Long-term lease obligations | 1,435 | 737 |
Long-term financing lease obligations | ' | ' |
Other Liabilities [Line Items] | ' | ' |
Long-term lease obligations | $555 | $9 |
Other_LongTerm_Liabilities_Lon
Other Long-Term Liabilities - Long Term Capital Lease Obligation (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Other Liabilities Disclosure [Abstract] | ' |
Gross capital lease obligations | $2,437 |
Less imputed interest | -47 |
Present value of net minimum lease payments | 2,390 |
Less current portion of capital lease obligation | -955 |
Total long-term capital lease obligations | $1,435 |
Other_LongTerm_Liabilities_Lon1
Other Long-Term Liabilities - Long Term Finance Lease Obligation (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Other Liabilities Disclosure [Abstract] | ' |
Gross financing lease obligations | $783 |
Less imputed interest | -200 |
Present value of net minimum lease payments | 583 |
Less current portion of financing lease obligations | -28 |
Total long-term financing lease obligations | $555 |
Other_LongTerm_Liabilities_Add
Other Long-Term Liabilities - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ' | ' |
Tax reserves for tax contingencies, inclusive of accrued interest and penalties for U.S. and foreign income taxes | $457 | $336 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-12 | Sep. 30, 2013 | Sep. 30, 2013 | 31-May-12 |
Clouding IP, LLC f/k/a/ STEC IP, LLC | Personalized Media Communications, LLC | Personalized Media Communications, LLC | Minimum | ||||
Patent | Patent | CloudFront, S3 and EC2 | Clouding IP, LLC f/k/a/ STEC IP, LLC | ||||
Patent | Patent | ||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Rental expense under operating lease agreements | $759 | $561 | $381 | ' | ' | ' | ' |
Pledged or otherwise restricted cash, marketable securities, and certain fixed assets as collateral | $482 | $99 | ' | ' | ' | ' | ' |
Supplier description | 'During 2013, no vendor accounted for 10% or more of our purchases. | ' | ' | ' | ' | ' | ' |
Number of patents infringed | ' | ' | ' | ' | 9 | 3 | 1 |
Number of patents | ' | ' | ' | 11 | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Principal Contractual Commitments Excluding Open Orders for Inventory Purchases That Support Normal Operations (Detail) (USD $) | Dec. 31, 2013 | |
In Millions, unless otherwise specified | ||
Long-term Purchase Commitments [Line Items] | ' | |
Year Ended December 31, 2014 | $3,884 | |
Year Ended December 31, 2015 | 3,152 | |
Year Ended December 31, 2016 | 1,345 | |
Year Ended December 31, 2017 | 1,917 | |
Year Ended December 31, 2018 | 773 | |
Thereafter | 5,358 | |
Total | 16,429 | |
Debt principal and interest | ' | |
Long-term Purchase Commitments [Line Items] | ' | |
Year Ended December 31, 2014 | 835 | |
Year Ended December 31, 2015 | 906 | |
Year Ended December 31, 2016 | 81 | |
Year Ended December 31, 2017 | 1,081 | |
Year Ended December 31, 2018 | 69 | |
Thereafter | 1,375 | |
Total | 4,347 | |
Capital leases, including interest | ' | |
Long-term Purchase Commitments [Line Items] | ' | |
Year Ended December 31, 2014 | 963 | |
Year Ended December 31, 2015 | 883 | |
Year Ended December 31, 2016 | 361 | |
Year Ended December 31, 2017 | 71 | |
Year Ended December 31, 2018 | 42 | |
Thereafter | 117 | |
Total | 2,437 | |
Financing lease obligations, including interest | ' | |
Long-term Purchase Commitments [Line Items] | ' | |
Year Ended December 31, 2014 | 49 | |
Year Ended December 31, 2015 | 48 | |
Year Ended December 31, 2016 | 52 | |
Year Ended December 31, 2017 | 52 | |
Year Ended December 31, 2018 | 53 | |
Thereafter | 529 | |
Total | 783 | |
Operating leases | ' | |
Long-term Purchase Commitments [Line Items] | ' | |
Year Ended December 31, 2014 | 752 | |
Year Ended December 31, 2015 | 654 | |
Year Ended December 31, 2016 | 604 | |
Year Ended December 31, 2017 | 539 | |
Year Ended December 31, 2018 | 470 | |
Thereafter | 2,116 | |
Total | 5,135 | |
Unconditional purchase obligations | ' | |
Long-term Purchase Commitments [Line Items] | ' | |
Year Ended December 31, 2014 | 539 | [1] |
Year Ended December 31, 2015 | 386 | [1] |
Year Ended December 31, 2016 | 80 | [1] |
Year Ended December 31, 2017 | 37 | [1] |
Year Ended December 31, 2018 | 29 | [1] |
Thereafter | 27 | [1] |
Total | 1,098 | [1] |
Other commitments | ' | |
Long-term Purchase Commitments [Line Items] | ' | |
Year Ended December 31, 2014 | 746 | [2],[3] |
Year Ended December 31, 2015 | 275 | [2],[3] |
Year Ended December 31, 2016 | 167 | [2],[3] |
Year Ended December 31, 2017 | 137 | [2],[3] |
Year Ended December 31, 2018 | 110 | [2],[3] |
Thereafter | 1,194 | [2],[3] |
Total | $2,629 | [2],[3] |
[1] | Includes unconditional purchase obligations related to agreements to acquire and license digital video content that represent long-term liabilities or are not reflected on the consolidated balance sheets. For those agreements with variable terms, we do not estimate what the total obligation may be beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified. | |
[2] | Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that have not been placed in service | |
[3] | Excludes $407 million of tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any |
Commitments_and_Contingencies_3
Commitments and Contingencies - Principal Contractual Commitments Excluding Open Orders for Inventory Purchases That Support Normal Operations (Parenthetical) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |||
In Millions, unless otherwise specified | |||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' | |||
Tax contingencies | $407 | [1] | $294 | [1] | $229 | [1] | $213 |
[1] | As of December 31, 2013, we had $407 million of tax contingencies, of which $346 million, if fully recognized, would decrease our effective tax rate. |
Stockholders_Equity_Additional
Stockholders Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Repurchase Program, 2010 | Restricted Stock Units | Restricted Stock Units | ||||
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' |
Preferred stock, authorized shares | 500,000,000 | 500,000,000 | ' | ' | ' | ' |
Preferred stock, par value (in usd per share) | $0.01 | $0.01 | ' | ' | ' | ' |
Common shares outstanding plus shares underlying outstanding stock awards, including all stock-based awards outstanding, including estimated forfeiture | 476,000,000 | 470,000,000 | 468,000,000 | ' | ' | ' |
Repurchase program authorized by Board of Directors | ' | ' | ' | $2,000,000,000 | ' | ' |
Repurchase program authorized, remaining common stock | ' | ' | ' | 763,000,000 | ' | ' |
Awards vesting period, minimum | ' | ' | ' | ' | '2 years | ' |
Awards vesting period, maximum | ' | ' | ' | ' | '5 years | ' |
Net unrecognized compensation cost related to unvested stock-based compensation arrangements | 1,700,000,000 | ' | ' | ' | ' | ' |
Net unrecognized compensation cost related to unvested stock-based compensation arrangements, weighted average recognition period (in years) | '1 year 2 months 12 days | ' | ' | ' | ' | ' |
Fair value of vested restricted stock units | ' | ' | ' | ' | $1,400,000,000 | $928,000,000 |
Shares of common stock granted under the 401 (k) savings plan | 100,000 | 100,000 | ' | ' | ' | ' |
Common stock available for future issuance to employees | 143,000,000 | ' | ' | ' | ' | ' |
Stockholders_Equity_Restricted
Stockholders' Equity - Restricted Stock Unit Activity (Detail) (Restricted Stock Units, USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restricted Stock Units | ' | ' | ' |
Number of units | ' | ' | ' |
Beginning balance (in shares) | 15.4 | 13.1 | 14 |
Units granted (in shares) | 7.2 | 8.2 | 5.4 |
Units vested (in shares) | -4.5 | -4.2 | -5.1 |
Units forfeited (in shares) | -1.8 | -1.7 | -1.2 |
Ending balance (in shares) | 16.3 | 15.4 | 13.1 |
Weighted Average Grant-Date Fair Value | ' | ' | ' |
Beginning balance (in usd per share) | $184 | $143 | $96 |
Units granted (in usd per share) | $283 | $209 | $193 |
Units vested (in usd per share) | $160 | $110 | $73 |
Units forfeited (in usd per share) | $209 | $168 | $122 |
Ending balance (in usd per share) | $233 | $184 | $143 |
Stockholders_Equity_Scheduled_
Stockholders' Equity - Scheduled Vesting for Outstanding Restricted Stock Units (Detail) (Restricted Stock Units) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Restricted Stock Units | ' |
Schedule of Vesting [Line Items] | ' |
2014 | 5.4 |
2015 | 5.8 |
2016 | 3.2 |
2017 | 1.6 |
2018 | 0.2 |
Thereafter | 0.1 |
Total | 16.3 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Changes in Composition of Accumulated Other Comprehensive Income or Loss (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ' | ' | ' |
Balance as of beginning of period | ($239) | ($316) | ($190) |
Other comprehensive income (Loss) | 63 | 76 | -123 |
Other comprehensive income (loss) | -9 | 1 | -3 |
Total other comprehensive income (loss) | 54 | 77 | -126 |
Balance as of end of period | -185 | -239 | -316 |
Foreign currency translation adjustments | ' | ' | ' |
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ' | ' | ' |
Balance as of beginning of period | -250 | -326 | -203 |
Other comprehensive income (Loss) | 63 | 76 | -123 |
Balance as of end of period | -187 | -250 | -326 |
Unrealized gains on available-for-sale securities | ' | ' | ' |
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ' | ' | ' |
Balance as of beginning of period | 11 | 10 | 13 |
Other comprehensive income (loss) | -9 | 1 | -3 |
Balance as of end of period | $2 | $11 | $10 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |||||||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Provision for income taxes, net | $179 | [1] | ($12) | [1] | $13 | [1] | ($18) | [1] | $194 | [1] | $83 | [1] | $109 | [1] | $43 | [1] | $161 | $428 | $291 | ' | |||
Cash taxes paid, net of refunds | ' | ' | ' | ' | ' | ' | ' | ' | 169 | 112 | 33 | ' | |||||||||||
Federal statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% | ' | |||||||||||
Tax credit carryforwards for income tax purposes | 334 | ' | ' | ' | ' | ' | ' | ' | 334 | ' | ' | ' | |||||||||||
Tax credit carryforwards for income tax purposes, beginning expiration year | ' | ' | ' | ' | ' | ' | ' | ' | '2020 | ' | ' | ' | |||||||||||
Tax contingencies | 407 | [2] | ' | ' | ' | 294 | [2] | ' | ' | ' | 407 | [2] | 294 | [2] | 229 | [2] | 213 | ||||||
Tax contingencies that would decrease effective tax rate | 346 | ' | ' | ' | ' | ' | ' | ' | 346 | ' | ' | ' | |||||||||||
Accrrued interest and penalties, net of federal income tax benefit, related to tax contingencies | 33 | ' | ' | ' | 25 | ' | ' | ' | 33 | 25 | ' | ' | |||||||||||
Interest and penalties, net of federal income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 1 | 3 | ' | |||||||||||
Description of the status of the tax examination | ' | ' | ' | ' | ' | ' | ' | ' | 'We are under examination, or may be subject to examination, by the Internal Revenue Service (“IRSâ€) for the calendar year 2005 or thereafter. | ' | ' | ' | |||||||||||
Additional federal tax period beginning in 2005 | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | |||||||||||
Tax examination, additional tax expense including interest and penalties | ' | ' | ' | ' | ' | ' | ' | ' | 1,500 | ' | ' | ' | |||||||||||
Internal Revenue Service (IRS) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net operating loss carryforwards | 275 | ' | ' | ' | ' | ' | ' | ' | 275 | ' | ' | ' | |||||||||||
Operating loss carryforwards, beginning expiration year | ' | ' | ' | ' | ' | ' | ' | ' | '2027 | ' | ' | ' | |||||||||||
Foreign Country | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net operating loss carryforwards | 1,600 | ' | ' | ' | ' | ' | ' | ' | 1,600 | ' | ' | ' | |||||||||||
Operating loss carryforwards, beginning expiration year | ' | ' | ' | ' | ' | ' | ' | ' | '2014 | ' | ' | ' | |||||||||||
State of Arizona | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net operating loss carryforwards | 880 | ' | ' | ' | ' | ' | ' | ' | 880 | ' | ' | ' | |||||||||||
Operating loss carryforwards, beginning expiration year | ' | ' | ' | ' | ' | ' | ' | ' | '2014 | ' | ' | ' | |||||||||||
France | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Tax examination, additional tax expense including interest and penalties | ' | ' | ' | ' | ' | ' | ' | ' | $250 | ' | ' | ' | |||||||||||
[1] | The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. | ||||||||||||||||||||||
[2] | As of December 31, 2013, we had $407 million of tax contingencies, of which $346 million, if fully recognized, would decrease our effective tax rate. |
Income_Taxes_Components_of_Pro
Income Taxes - Components of Provision for Income Taxes, Net (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Current taxes: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
U.S. and state | ' | ' | ' | ' | ' | ' | ' | ' | $144 | $562 | $103 | ||||||||
International | ' | ' | ' | ' | ' | ' | ' | ' | 173 | 131 | 52 | ||||||||
Current taxes | ' | ' | ' | ' | ' | ' | ' | ' | 317 | 693 | 155 | ||||||||
Deferred taxes: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
U.S. and state | ' | ' | ' | ' | ' | ' | ' | ' | -133 | -156 | 157 | ||||||||
International | ' | ' | ' | ' | ' | ' | ' | ' | -23 | -109 | -21 | ||||||||
Deferred taxes | ' | ' | ' | ' | ' | ' | ' | ' | -156 | -265 | 136 | ||||||||
Provision for income taxes, net | $179 | [1] | ($12) | [1] | $13 | [1] | ($18) | [1] | $194 | [1] | $83 | [1] | $109 | [1] | $43 | [1] | $161 | $428 | $291 |
[1] | The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. |
Income_Taxes_US_and_Internatio
Income Taxes - U.S. and International Components of Income before Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
U.S. | ' | ' | ' | ' | ' | ' | ' | ' | $704 | $882 | $658 | ||||||||
International | ' | ' | ' | ' | ' | ' | ' | ' | -198 | -338 | 276 | ||||||||
Income before income taxes | $451 | [1] | ($43) | [1] | $17 | [1] | $81 | [1] | $337 | [1] | ($22) | [1] | $146 | [1] | $84 | [1] | $506 | $544 | $934 |
[1] | The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. |
Income_Taxes_Items_Accounting_
Income Taxes - Items Accounting for Differences between Income Taxes Computed at Federal Statutory Rate and Provision Recorded for Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Effect of: | ' | ' | ' |
Impact of foreign tax differential | -8.10% | 31.50% | -8.40% |
State taxes, net of federal benefits | 2.70% | 0.20% | 1.50% |
Tax credits | -16.60% | -4.40% | -3.20% |
Nondeductible compensation | 16.90% | 13.30% | 4.90% |
Domestic production activities deduction | -2.10% | 0.00% | 0.00% |
Other, net | 4.00% | 3.00% | 1.40% |
Total | 31.80% | 78.60% | 31.20% |
Income_Taxes_Deferred_Income_T
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Deferred tax assets: | ' | ' | ||
Net operating losses U.S. - Federal/States | $53 | [1] | $47 | [1] |
Net operating losses foreign | 427 | [2] | 289 | [2] |
Accrued liabilities, reserves, & other expenses | 590 | 482 | ||
Stock-based compensation | 396 | 281 | ||
Deferred revenue | 249 | 129 | ||
Assets held for investment | 164 | 129 | ||
Other items | 177 | 133 | ||
Tax credits | 107 | [3] | 12 | [3] |
Total gross deferred tax assets | 2,163 | 1,502 | ||
Less valuation allowance | -698 | [4] | -415 | [4] |
Deferred tax assets, net of valuation allowance | 1,465 | 1,087 | ||
Deferred tax liabilities: | ' | ' | ||
Depreciation & amortization | -1,021 | -698 | ||
Acquisition related intangible assets | -201 | -274 | ||
Other items | -16 | -29 | ||
Net deferred tax assets, net of valuation allowance | $227 | $86 | ||
[1] | Excluding $81 million and $9 million of deferred tax assets as of December 31, 2013 and 2012, related to net operating losses that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. | |||
[2] | Excluding $2 million and $2 million of deferred tax assets as of December 31, 2013 and 2012, related to net operating losses that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. | |||
[3] | Excluding $227 million and $146 million of deferred tax assets as of December 31, 2013 and 2012, related to tax credits that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. | |||
[4] | Relates primarily to deferred tax assets that would only be realizable upon the generation of net income in certain foreign taxing jurisdictions and future capital gains. |
Income_Taxes_Deferred_Income_T1
Income Taxes - Deferred Income Tax Assets and Liabilities (Parenthetical) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ' | ' | ||
Deferred tax assets, net operating losses | $53 | [1] | $47 | [1] |
Deferred tax assets, net operating losses | 427 | [2] | 289 | [2] |
Deferred tax assets, tax credits | 107 | [3] | 12 | [3] |
Net operating losses-stock-based compensation | ' | ' | ||
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ' | ' | ||
Deferred tax assets, net operating losses | 81 | 9 | ||
Deferred tax assets, net operating losses | 2 | 2 | ||
Deferred tax assets, tax credits | $227 | $146 | ||
[1] | Excluding $81 million and $9 million of deferred tax assets as of December 31, 2013 and 2012, related to net operating losses that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. | |||
[2] | Excluding $2 million and $2 million of deferred tax assets as of December 31, 2013 and 2012, related to net operating losses that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. | |||
[3] | Excluding $227 million and $146 million of deferred tax assets as of December 31, 2013 and 2012, related to tax credits that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Tax Contingencies (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Loss Contingency [Roll Forward] | ' | ' | ' | |||
Gross tax contingencies, beginning | $294 | [1] | $229 | [1] | $213 | |
Gross increases to tax positions in prior periods | 78 | 91 | 22 | |||
Gross decreases to tax positions in prior periods | -18 | -47 | -3 | |||
Gross increases to current period tax positions | 54 | 26 | 4 | |||
Audit settlements paid | -1 | -4 | -1 | |||
Lapse of statute of limitations | 0 | -1 | -6 | |||
Gross tax contingencies, ending | $407 | [1] | $294 | [1] | $229 | [1] |
[1] | As of December 31, 2013, we had $407 million of tax contingencies, of which $346 million, if fully recognized, would decrease our effective tax rate. |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Tax Contingencies (Parenthetical) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |||
In Millions, unless otherwise specified | |||||||
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | |||
Tax contingencies | $407 | [1] | $294 | [1] | $229 | [1] | $213 |
[1] | As of December 31, 2013, we had $407 million of tax contingencies, of which $346 million, if fully recognized, would decrease our effective tax rate. |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Segment Reporting Disclosure [Line Items] | ' |
Number of segments | 2 |
Geographic Concentration Risk | Property, Plant and Equipment | Outside United States | Maximum | ' |
Segment Reporting Disclosure [Line Items] | ' |
Concentration percentage | 10.00% |
Segment_Information_Reportable
Segment Information - Reportable Segments and Reconciliation to Consolidated Net Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||
Segment Reporting Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | $25,587 | [1] | $17,092 | [1] | $15,704 | [1] | $16,070 | [1] | $21,268 | [1] | $13,806 | [1] | $12,834 | [1] | $13,185 | [1] | $74,452 | $61,093 | $48,077 | |||
Segment operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 73,707 | 60,417 | 47,215 | |||||||||||
Income from operations | 510 | [1] | -25 | [1] | 79 | [1] | 181 | [1] | 405 | [1] | -28 | [1] | 107 | [1] | 192 | [1] | 745 | 676 | 862 | |||
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | -1,134 | -833 | -557 | |||||||||||
Other operating income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -114 | -159 | -154 | |||||||||||
Total non-operating income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | -239 | -132 | 72 | |||||||||||
Provision for income taxes | -179 | [1] | 12 | [1] | -13 | [1] | 18 | [1] | -194 | [1] | -83 | [1] | -109 | [1] | -43 | [1] | -161 | -428 | -291 | |||
Equity-method investment activity, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -71 | -155 | -12 | |||||||||||
Net income (loss) | 239 | [1] | -41 | [1] | -7 | [1] | 82 | [1] | 97 | [1] | -274 | [1] | 7 | [1] | 130 | [1] | 274 | -39 | 631 | |||
Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 74,452 | 61,093 | 48,077 | |||||||||||
Segment operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 72,459 | [2] | 59,425 | [2] | 46,504 | [2] | ||||||||
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 1,993 | 1,668 | 1,573 | |||||||||||
Operating Segments | North America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 44,517 | 34,813 | 26,705 | |||||||||||
Segment operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 42,631 | [2] | 33,221 | [2] | 25,772 | [2] | ||||||||
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 1,886 | 1,592 | 933 | |||||||||||
Operating Segments | International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 29,935 | 26,280 | 21,372 | |||||||||||
Segment operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 29,828 | [2] | 26,204 | [2] | 20,732 | [2] | ||||||||
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | $107 | $76 | $640 | |||||||||||
[1] | The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. | |||||||||||||||||||||
[2] | Represents operating expenses, excluding stock-based compensation and “Other operating expense (income), net,†which are not allocated to segments. |
Segment_Information_Net_Sales_
Segment Information - Net Sales of Similar Products and Services (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | $25,587 | [1] | $17,092 | [1] | $15,704 | [1] | $16,070 | [1] | $21,268 | [1] | $13,806 | [1] | $12,834 | [1] | $13,185 | [1] | $74,452 | $61,093 | $48,077 | |||
Media | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 21,716 | 19,942 | 17,779 | |||||||||||
Electronics and other general merchandise | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 48,802 | 38,628 | 28,712 | |||||||||||
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $3,934 | [2] | $2,523 | [2] | $1,586 | [2] | ||||||||
[1] | The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. | |||||||||||||||||||||
[2] | Includes sales from non-retail activities, such as AWS, advertising services, and our co-branded credit card agreements. |
Segment_Information_Net_Sales_1
Segment Information - Net Sales Attributed to Foreign Countries (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | $25,587 | [1] | $17,092 | [1] | $15,704 | [1] | $16,070 | [1] | $21,268 | [1] | $13,806 | [1] | $12,834 | [1] | $13,185 | [1] | $74,452 | $61,093 | $48,077 |
Foreign Country | Germany | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 10,535 | 8,732 | 7,230 | ||||||||
Foreign Country | Japan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 7,639 | 7,800 | 6,576 | ||||||||
Foreign Country | United Kingdom | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $7,291 | $6,478 | $5,348 | ||||||||
[1] | The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. |
Segment_Information_Total_Asse
Segment Information - Total Assets Fixed Assets Net and Total Fixed Asset Additions By Segment (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | $40,159 | $32,555 |
Property and equipment, net | 10,949 | 7,060 |
Total property and equipment additions | 6,373 | 4,317 |
North America | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | 26,108 | 20,703 |
Property and equipment, net | 8,447 | 5,481 |
Total property and equipment additions | 4,837 | 3,348 |
International | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Total assets | 14,051 | 11,852 |
Property and equipment, net | 2,502 | 1,579 |
Total property and equipment additions | $1,536 | $969 |
Segment_Information_Depreciati
Segment Information - Depreciation Expense, by Segment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation Of Depreciation By Segment [Line Items] | ' | ' | ' |
Depreciation expense | $2,460 | $1,653 | $1,034 |
North America | ' | ' | ' |
Reconciliation Of Depreciation By Segment [Line Items] | ' | ' | ' |
Depreciation expense | 1,863 | 1,229 | 795 |
International | ' | ' | ' |
Reconciliation Of Depreciation By Segment [Line Items] | ' | ' | ' |
Depreciation expense | $597 | $424 | $239 |
Quarterly_Results_Unaudited_Un
Quarterly Results (Unaudited) - Unaudited Quarterly Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | $25,587 | [1] | $17,092 | [1] | $15,704 | [1] | $16,070 | [1] | $21,268 | [1] | $13,806 | [1] | $12,834 | [1] | $13,185 | [1] | $74,452 | $61,093 | $48,077 |
Income (loss) from operations | 510 | [1] | -25 | [1] | 79 | [1] | 181 | [1] | 405 | [1] | -28 | [1] | 107 | [1] | 192 | [1] | 745 | 676 | 862 |
Income (loss) before income taxes | 451 | [1] | -43 | [1] | 17 | [1] | 81 | [1] | 337 | [1] | -22 | [1] | 146 | [1] | 84 | [1] | 506 | 544 | 934 |
Provision (benefit) for income taxes | 179 | [1] | -12 | [1] | 13 | [1] | -18 | [1] | 194 | [1] | 83 | [1] | 109 | [1] | 43 | [1] | 161 | 428 | 291 |
Net income (loss) | $239 | [1] | ($41) | [1] | ($7) | [1] | $82 | [1] | $97 | [1] | ($274) | [1] | $7 | [1] | $130 | [1] | $274 | ($39) | $631 |
Basic earnings per share (in usd per share) | $0.52 | [1] | ($0.09) | [1] | ($0.02) | [1] | $0.18 | [1] | $0.21 | [1] | ($0.60) | [1] | $0.02 | [1] | $0.29 | [1] | $0.60 | ($0.09) | $1.39 |
Diluted earnings per share (in usd per share) | $0.51 | [1] | ($0.09) | [1] | ($0.02) | [1] | $0.18 | [1] | $0.21 | [1] | ($0.60) | [1] | $0.01 | [1] | $0.28 | [1] | $0.59 | ($0.09) | $1.37 |
Shares used in computation of earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Basic (in shares) | 458 | [1] | 457 | [1] | 456 | [1] | 455 | [1] | 454 | [1] | 452 | [1] | 451 | [1] | 453 | [1] | 457 | 453 | 453 |
Diluted (in shares) | 467 | [1] | 457 | [1] | 456 | [1] | 463 | [1] | 461 | [1] | 452 | [1] | 458 | [1] | 460 | [1] | 465 | 453 | 461 |
[1] | The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. |