Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 20, 2016 | Jun. 30, 2015 | |
Document Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AMZN | ||
Entity Registrant Name | AMAZON COM INC | ||
Entity Central Index Key | 1,018,724 | ||
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 | $ 166,381,236,673 | ||
Entity Common Stock, Shares Outstanding | 470,842,035 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | $ 14,557 | $ 8,658 | $ 8,084 |
OPERATING ACTIVITIES: | |||
Net income (loss) | 596 | (241) | 274 |
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, including capitalized content costs | 6,281 | 4,746 | 3,253 |
Stock-based compensation | 2,119 | 1,497 | 1,134 |
Other operating expense (income), net | 155 | 129 | 114 |
Losses (gains) on sales of marketable securities, net | 5 | (3) | 1 |
Other expense (income), net | 245 | 62 | 166 |
Deferred income taxes | 81 | (316) | (156) |
Excess tax benefits from stock-based compensation | (119) | (6) | (78) |
Changes in operating assets and liabilities: | |||
Inventories | (2,187) | (1,193) | (1,410) |
Accounts receivable, net and other | (1,755) | (1,039) | (846) |
Accounts payable | 4,294 | 1,759 | 1,888 |
Accrued expenses and other | 913 | 706 | 736 |
Additions to unearned revenue | 7,401 | 4,433 | 2,691 |
Amortization of previously unearned revenue | (6,109) | (3,692) | (2,292) |
Net cash provided by (used in) operating activities | 11,920 | 6,842 | 5,475 |
INVESTING ACTIVITIES: | |||
Purchases of property and equipment, including internal-use software and website development, net | (4,589) | (4,893) | (3,444) |
Acquisitions, net of cash acquired, and other | (795) | (979) | (312) |
Sales and maturities of marketable securities | 3,025 | 3,349 | 2,306 |
Purchases of marketable securities | 4,091 | 2,542 | 2,826 |
Net cash provided by (used in) investing activities | (6,450) | (5,065) | (4,276) |
FINANCING ACTIVITIES: | |||
Excess tax benefits from stock-based compensation | 119 | 6 | 78 |
Proceeds from long-term debt and other | 353 | 6,359 | 394 |
Repayments of long-term debt and other | (1,652) | (513) | (231) |
Principal repayments of capital lease obligations | (2,462) | (1,285) | (775) |
Principal repayments of finance lease obligations | (121) | (135) | (5) |
Net cash provided by (used in) financing activities | (3,763) | 4,432 | (539) |
Foreign-currency effect on cash and cash equivalents | (374) | (310) | (86) |
Net increase (decrease) in cash and cash equivalents | 1,333 | 5,899 | 574 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 15,890 | 14,557 | 8,658 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Cash paid for interest on long-term debt | 325 | 91 | 97 |
Cash paid for interest on capital and finance lease obligations | 153 | 86 | 41 |
Cash paid for income taxes (net of refunds) | 273 | 177 | 169 |
Assets held under capital leases | |||
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Property and equipment acquired | 4,717 | 4,008 | 1,867 |
Assets held under build-to-suit leases | |||
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Property and equipment acquired | $ 544 | $ 920 | $ 877 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net product sales | $ 79,268 | $ 70,080 | $ 60,903 |
Net service sales | 27,738 | 18,908 | 13,549 |
Total net sales | 107,006 | 88,988 | 74,452 |
Operating expenses: | |||
Cost of sales | 71,651 | 62,752 | 54,181 |
Fulfillment | 13,410 | 10,766 | 8,585 |
Marketing | 5,254 | 4,332 | 3,133 |
Technology and content | 12,540 | 9,275 | 6,565 |
General and administrative | 1,747 | 1,552 | 1,129 |
Other operating expense (income), net | 171 | 133 | 114 |
Total operating expenses | 104,773 | 88,810 | 73,707 |
Income from operations | 2,233 | 178 | 745 |
Interest income | 50 | 39 | 38 |
Interest expense | (459) | (210) | (141) |
Other income (expense), net | (256) | (118) | (136) |
Total non-operating income (expense) | (665) | (289) | (239) |
Income (loss) before income taxes | 1,568 | (111) | 506 |
Provision for income taxes | (950) | (167) | (161) |
Equity-method investment activity, net of tax | (22) | 37 | (71) |
Net income (loss) | $ 596 | $ (241) | $ 274 |
Basic earnings per share | $ 1.28 | $ (0.52) | $ 0.60 |
Diluted earnings per share | $ 1.25 | $ (0.52) | $ 0.59 |
Weighted-average shares used in computation of earnings per share: | |||
Basic | 467 | 462 | 457 |
Diluted | 477 | 462 | 465 |
Consolidated Statements Of Ope4
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fulfillment | |||
Stock-based compensation | $ 482 | $ 375 | $ 294 |
Marketing | |||
Stock-based compensation | 190 | 125 | 88 |
Technology and content | |||
Stock-based compensation | 1,224 | 804 | 603 |
General and administrative | |||
Stock-based compensation | $ 223 | $ 193 | $ 149 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income (loss) | $ 596 | $ (241) | $ 274 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, net of tax of $10, $(3), and $(20) | (210) | (325) | 63 |
Net change in unrealized gains (losses) on available-for-sale securities: | |||
Unrealized gains (losses), net of tax of $(5), $1, and $3 | (7) | 2 | (10) |
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $(1), and $(1) | 5 | (3) | 1 |
Net unrealized gains (losses) on available-for-sale securities | (2) | (1) | (9) |
Total other comprehensive income (loss) | (212) | (326) | 54 |
Comprehensive income (loss) | $ 384 | $ (567) | $ 328 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax | $ 10 | $ (3) | $ (20) |
Unrealized gains (losses), tax | (5) | 1 | 3 |
Reclassification adjustment for losses (gains) included in other income (expense), net, tax | $ 0 | $ (1) | $ (1) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 15,890 | $ 14,557 |
Marketable securities | 3,918 | 2,859 |
Inventories | 10,243 | 8,299 |
Accounts receivable, net and other | 6,423 | 5,612 |
Total current assets | 36,474 | 31,327 |
Property and equipment, net | 21,838 | 16,967 |
Goodwill | 3,759 | 3,319 |
Other assets | 3,373 | 2,892 |
Total assets | 65,444 | 54,505 |
Current liabilities: | ||
Accounts payable | 20,397 | 16,459 |
Accrued expenses and other | 10,384 | 9,807 |
Unearned revenue | 3,118 | 1,823 |
Total current liabilities | 33,899 | 28,089 |
Long-term debt | 8,235 | 8,265 |
Other long-term liabilities | $ 9,926 | $ 7,410 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value: Authorized shares - 500 Issued and outstanding shares - none | $ 0 | $ 0 |
Common stock, $0.01 par value: Authorized shares - 5,000 Issued shares - 494 and 488 Outstanding shares - 471 and 465 | 5 | 5 |
Treasury stock, at cost | (1,837) | (1,837) |
Additional paid-in capital | 13,394 | 11,135 |
Accumulated other comprehensive loss | (723) | (511) |
Retained earnings | 2,545 | 1,949 |
Total stockholders’ equity | 13,384 | 10,741 |
Total liabilities and stockholders’ equity | $ 65,444 | $ 54,505 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
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 | 494,000,000 | 488,000,000 |
Common stock, Outstanding shares | 471,000,000 | 465,000,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning Balance (in shares) at Dec. 31, 2012 | 454 | |||||
Beginning Balance at Dec. 31, 2012 | $ 8,192 | $ 5 | $ (1,837) | $ 8,347 | $ (239) | $ 1,916 |
Net income (loss) | 274 | 274 | ||||
Total other comprehensive income (loss) | 54 | 54 | ||||
Exercise of common stock options (in shares) | 5 | |||||
Exercise of common stock options | 4 | 4 | ||||
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 (in shares) at Dec. 31, 2013 | 459 | |||||
Ending Balance at Dec. 31, 2013 | 9,746 | $ 5 | (1,837) | 9,573 | (185) | 2,190 |
Net income (loss) | (241) | (241) | ||||
Total other comprehensive income (loss) | (326) | (326) | ||||
Exercise of common stock options (in shares) | 6 | |||||
Exercise of common stock options | 2 | 2 | ||||
Excess tax benefits from stock-based compensation | 6 | 6 | ||||
Stock-based compensation and issuance of employee benefit plan stock | 1,510 | 1,510 | ||||
Issuance of common stock for acquisition activity | 44 | 44 | ||||
Ending Balance (in shares) at Dec. 31, 2014 | 465 | |||||
Ending Balance at Dec. 31, 2014 | 10,741 | $ 5 | (1,837) | 11,135 | (511) | 1,949 |
Net income (loss) | 596 | 596 | ||||
Total other comprehensive income (loss) | (212) | (212) | ||||
Exercise of common stock options (in shares) | 6 | |||||
Exercise of common stock options | 4 | 4 | ||||
Excess tax benefits from stock-based compensation | 119 | 119 | ||||
Stock-based compensation and issuance of employee benefit plan stock | 2,131 | 2,131 | ||||
Issuance of common stock for acquisition activity | 5 | 5 | ||||
Ending Balance (in shares) at Dec. 31, 2015 | 471 | |||||
Ending Balance at Dec. 31, 2015 | $ 13,384 | $ 5 | $ (1,837) | $ 13,394 | $ (723) | $ 2,545 |
Description of Business and Acc
Description of Business and Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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 segments, we serve our primary customer sets, consisting of consumers, sellers, developers, 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 our AWS segment, 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 three segments: North America, International, and AWS. See “Note 11—Segment Information.” Prior Period Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation, including recasting the segment financial information within “Note 11—Segment Information” as a result of changing our reportable segments to include an AWS segment. 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, including certain entities in India and China (collectively, the “Company”). 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 amortization period 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 and website development costs, 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 have a net loss, stock awards are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect. In 2014, we excluded stock awards of 17 million . The following table shows the calculation of diluted shares (in millions): Year Ended December 31, 2015 2014 2013 Shares used in computation of basic earnings per share 467 462 457 Total dilutive effect of outstanding stock awards 10 — 8 Shares used in computation of diluted earnings per share 477 462 465 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 service has 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 relative 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 the cost of producing the product or service. Sales of our digital devices, including Kindle e-readers, Fire tablets, Fire TVs, and Echo, are considered arrangements with multiple deliverables, consisting of the device, undelivered software upgrades and/or undelivered non-software services such as cloud storage and free trial memberships to other services. The revenue allocated to the device, which is the substantial portion of the total sale price, and related costs are generally recognized upon delivery. Revenue related to undelivered software upgrades and/or undelivered non-software services is deferred and recognized generally on a straight-line basis over the estimated period the software upgrades and non-software services are expected to be provided for each of these devices. Sales of Amazon Prime memberships are also considered arrangements with multiple deliverables, including shipping benefits, Prime Video, Prime Music, Prime Photos, and access to the Kindle Owners’ Lending Library. The revenue related to the deliverables is amortized over the life of the membership based on the estimated delivery of services. Amazon Prime membership fees are allocated between product sales and service sales. Costs to deliver Amazon Prime benefits are recognized as cost of sales as incurred. As we add more benefits to the Prime membership, we will update the method of determining the estimated selling prices of each element as well as the allocation of Prime membership fees. 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 fixed fees, a percentage of seller revenues, per-unit activity fees, or some combination thereof. Product sales represent revenue from the sale of products and related shipping fees and digital media content where we record revenue gross. 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. 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. Amazon’s electronic devices sold through retailers are recognized at the point of sale to consumers. Service sales represent third-party seller fees earned (including commissions) and related shipping fees, AWS sales, digital content subscriptions, advertising services, and our co-branded credit card agreements. Service sales, net of promotional discounts and return allowances, are recognized when service has been rendered. Return allowances, which reduce revenue, are estimated using historical experience. Allowance for returns was $153 million , $147 million , and $167 million as of December 31, 2015 , 2014 , and 2013 . Additions to the allowance were $1.3 billion , $1.1 billion , and $907 million , and deductions to the allowance were $1.3 billion , $1.1 billion , and $938 million in 2015 , 2014 , and 2013 . 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 primarily consists of the purchase price of consumer products, digital media content costs where we record revenue gross, including Prime Video and Prime Music, packaging supplies, sortation and delivery centers and related equipment costs, and inbound and outbound shipping costs, including where we are the transportation service provider. Shipping costs to receive products from our suppliers are included in our inventory, and recognized as cost of sales upon sale of products to our customers. Payment processing and related transaction costs, including those associated with seller transactions, are classified in “Fulfillment” on our consolidated statements of operations. Vendor Agreements We have agreements with our vendors to receive funds for advertising services, 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, including property and equipment, or services, and therefore record those amounts as a reduction of the cost of inventory, cost of services, or cost of property and equipment. 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 primarily consist of those costs incurred in operating and staffing our North America and International segments’ 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 primarily consist of targeted online advertising, television advertising, public relations expenditures, and payroll and related expenses for personnel engaged in marketing 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 $3.8 billion , $3.3 billion , and $2.4 billion in 2015 , 2014 , and 2013 . Prepaid advertising costs were not significant as of December 31, 2015 and 2014 . Technology and Content Technology costs consist principally of research and development activities including payroll and related expenses for employees involved in application, production, maintenance, operation, and platform development for new and existing products and services, as well as AWS and other technology infrastructure expenses. Content costs consist principally of payroll and related expenses for employees involved in category expansion, editorial content, buying, and merchandising selection. 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 primarily consist of payroll and related expenses; facilities and equipment, such as depreciation expense and rent; professional fees and litigation costs; and other general corporate costs for corporate functions, including accounting, finance, tax, legal, and human resources, among others. 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, and the fair value of stock options is estimated on the date of grant using a Black-Scholes model. Such value is recognized as expense over the service period, net of estimated forfeitures, using the accelerated method. The estimated number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. We consider many factors when estimating expected forfeitures, including employee level, economic conditions, time remaining to vest, and historical forfeiture experience. Other Operating Expense (Income), Net Other operating expense (income), net, consists primarily of marketing-related, contract-based, and customer-related intangible asset amortization expense and expenses related to legal settlements. Other Income (Expense), Net Other income (expense), net, consists primarily of foreign currency losses of $(266) million , $(127) million , and $(137) million in 2015 , 2014 , and 2013 , and realized gains (losses) on marketable securities sales of $(5) million , $3 million , and $(1) million in 2015 , 2014 , and 2013 . Income Taxes Income tax expense includes U.S. (federal and state) and foreign income taxes. Except as required under U.S. tax laws, 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 and our effective tax rate would be adversely affected. Undistributed earnings of foreign subsidiaries that are indefinitely invested outside of the U.S were $1.5 billion as of December 31, 2015 . 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 they will not be realized. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent cumulative 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 our tax positions and estimating our tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. We include interest and penalties related to our tax contingencies in income tax expense. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1 —Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 —Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 —Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. For our cash, cash equivalents, or marketable securities, 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 assets as of December 31, 2015 , or December 31, 2014 . As part of entering into commercial agreements, we often obtain equity warrant assets giving us the right to acquire stock primarily in private companies. We record these assets in “Other assets” on the accompanying consolidated balance sheets. Equity warrant assets are classified as Level 3 assets, and the balances and related activity for our equity warrant assets were not significant for the periods ended December 31, 2015 , 2014 , and 2013 . Cash and Cash Equivalents We classify all highly liquid instruments with an original maturity of three months or less as cash equivalents. Inventories Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out (“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. We also purchase electronic device components from a variety of suppliers and use several contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, we enter into agreements with contract manufacturers and suppliers. A portion of our reported purchase commitments arising from these agreements consists of firm, non-cancellable commitments. These commitments are based on forecasted customer demand. If we reduce these commitments, we may incur additional costs. Accounts Receivable, Net and Other Included in “Accounts receivable, net and other” on our consolidated balance sheets are amounts primarily related to customer and seller receivables and vendor receivables. As of December 31, 2015 and 2014 , customer and seller receivables, net, were $2.6 billion and $1.9 billion , and vendor receivables, net, were $1.8 billion and $1.4 billion . 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 $189 million , $190 million , and $153 million as of December 31, 2015 , 2014 , and 2013 . Additions to the allowance were $289 million , $225 million , and $172 million , and deductions to the allowance were $290 million , $188 million , and $135 million in 2015 , 2014 , and 2013 . 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 2015 , 2014 , and 2013 , we capitalized $642 million (including $114 million of stock-based compensation), $641 million (including $104 million of stock-based compensation), and $581 million (including $87 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $635 million , $559 million , and $451 million for 2015 , 2014 , and 2013 . 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 finance 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 the carrying value may not be recoverable. In testing for goodwill impairment, we may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If our qualitative assessment indicates that goodwill impairment is more likely than not, we perform a two-step impairment test. We test goodwill for impairment under the two-step impairment test 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. During the second quarter of 2015, we changed the measurement date of our annual goodwill impairment test from October 1 to April 1 . This change was not material to our consolidated financial statements as it did not result in the delay, acceleration, or avoidance of an impairment charge. We believe this timing better aligns the goodwill impairment test with our strategic business planning process, which is a key component of the goodwill impairment test. We completed the required annual testing of goodwill for impairment for all reporting units as of April 1, 2015, and determined that goodwill is not impaired. There were no triggering events identified from the date of our assessment through December 31, 2015 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; video and music 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; intellectual property rights, net of amortization; and equity warrant assets. Video and Music Content We obtain video and music content to be made available to Prime members 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, television, or music 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 to “Cost of sales” on a straight-line basis or on an accelerated basis, based on estimated viewing patterns 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. We also develop original content. The production costs of internally developed content are capitalized only if persuasive evidence exists that the production will generate revenue. Prior to 2015, because we had limited history to support the economic benefits of our content, we generally expensed such costs as incurred. In 2015, we began capitalizing a portion of production costs as we have developed more experience to support that future revenue will be earned. Capitalized internally developed costs are generally amortized to “Cost of sales” on an accelerated basis that follows the viewing pattern of customer streams in the first months after availability. 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. Equity-method investments are included within “Other assets” on our consolidated balance sheets. Our share of the earnings or losses as reported by equity-method investees, amortization of basis differences, and related gains or losses, if any, are classified as “Equity - method investment activity, net of tax” on our consolidated statements of operations. Equity investments without readily determinable fair values and 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” on 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 |
Cash, Cash Equivalents, and Mar
Cash, Cash Equivalents, and Marketable Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities | CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES As of December 31, 2015 and 2014 , 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, 2015 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value Cash $ 6,201 $ — $ — $ 6,201 Level 1 securities: Money market funds 8,025 — — 8,025 Equity securities 4 11 — 15 Level 2 securities: Foreign government and agency securities 49 — — 49 U.S. government and agency securities 5,171 1 (5 ) 5,167 Corporate debt securities 479 — (2 ) 477 Asset-backed securities 118 — (1 ) 117 Other fixed income securities 42 — — 42 $ 20,089 $ 12 $ (8 ) $ 20,093 Less: Restricted cash, cash equivalents, and marketable securities (1) (285 ) Total cash, cash equivalents, and marketable securities $ 19,808 December 31, 2014 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value Cash $ 4,155 $ — $ — $ 4,155 Level 1 securities: Money market funds 10,718 — — 10,718 Equity securities 2 2 — 4 Level 2 securities: Foreign government and agency securities 80 — — 80 U.S. government and agency securities 2,407 1 (2 ) 2,406 Corporate debt securities 401 1 (1 ) 401 Asset-backed securities 69 — — 69 Other fixed income securities 33 — — 33 $ 17,865 $ 4 $ (3 ) $ 17,866 Less: Restricted cash, cash equivalents, and marketable securities (1) (450 ) Total cash, cash equivalents, and marketable securities $ 17,416 ___________________ (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, real estate leases, and amounts due to third-party sellers in certain jurisdictions. We classify cash, cash equivalents, and marketable securities with use restrictions of less than twelve months as “Accounts receivable, net and other” and of twelve months or longer as non-current “Other assets” on our consolidated balance sheets. See “Note 7—Commitments and Contingencies.” The following table summarizes gross gains and gross losses realized on sales of available-for-sale marketable securities (in millions): Year Ended December 31, 2015 2014 2013 Realized gains $ 2 $ 8 $ 6 Realized losses 7 5 7 The following table summarizes the contractual maturities of our cash equivalents and marketable fixed-income securities as of December 31, 2015 (in millions): Amortized Cost Estimated Fair Value Due within one year $ 12,533 $ 12,531 Due after one year through five years 1,086 1,084 Due after five years through ten years 96 95 Due after ten years 169 167 Total $ 13,884 $ 13,877 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, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment, at cost, consisted of the following (in millions): December 31, 2015 2014 Gross property and equipment (1): Land and buildings $ 9,770 $ 7,150 Equipment and internal-use software (2) 18,417 14,213 Other corporate assets 334 304 Construction in progress 1,532 1,063 Gross property and equipment 30,053 22,730 Total accumulated depreciation (1) 8,215 5,763 Total property and equipment, net $ 21,838 $ 16,967 ___________________ (1) Excludes the original cost and accumulated depreciation of fully-depreciated assets. (2) Includes internal-use software of $1.4 billion and $1.3 billion as of December 31, 2015 and 2014 . Depreciation expense on property and equipment was $4.9 billion , $3.6 billion , and $2.5 billion , which includes amortization of property and equipment acquired under capital leases of $2.7 billion , $1.5 billion , and $826 million for 2015 , 2014 , and 2013 . Gross assets recorded under capital leases were $12.0 billion and $7.9 billion as of December 31, 2015 and 2014 . Accumulated depreciation associated with capital leases was $5.4 billion and $3.3 billion as of December 31, 2015 and 2014 . 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 finance leases provide purchase options. Upon occupancy, the long-term construction obligations are considered long-term finance lease obligations with amounts payable during the next 12 months recorded as “Accrued expenses and other.” Gross assets remaining under finance leases were $2.0 billion and $1.4 billion as of December 31, 2015 and 2014 . Accumulated depreciation associated with finance leases was $199 million and $87 million as of December 31, 2015 and 2014 . |
Acquisitions, Goodwill, and Acq
Acquisitions, Goodwill, and Acquired Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions, Goodwill, and Acquired Intangible Assets [Abstract] | |
Acquisitions Goodwill And Intangible Assets | ACQUISITIONS, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS 2015 Acquisition Activity During 2015 , we acquired certain companies for an aggregate purchase price of $690 million . The primary reasons for these acquisitions, none of which was individually material to our consolidated financial statements, were to acquire technologies and know-how to enable Amazon to serve customers more effectively. Acquisition-related costs were expensed as incurred and not significant. The aggregate purchase price of these acquisitions was allocated as follows (in millions): Purchase Price Cash paid, net of cash acquired $ 599 Stock options and restricted stock units assumed 5 Indemnification holdback 86 $ 690 Allocation Goodwill $ 482 Intangible assets (1): Marketing-related 3 Contract-based 1 Technology-based 208 Customer-related 18 230 Property and equipment 4 Deferred tax assets 55 Other assets acquired 53 Deferred tax liabilities (85 ) Other liabilities assumed (49 ) $ 690 ___________________ (1) Acquired intangible assets have estimated useful lives of between one and six years, with a weighted-average amortization period of five years. The fair value of assumed stock options, estimated using the Black-Scholes model, and restricted stock units of $9 million will be expensed over the remaining service period. We determined the estimated fair value of identifiable intangible assets acquired primarily by using the income approach. These assets are included within “Other assets” on our consolidated balance sheets and are being amortized to operating expenses on a straight-line basis over their estimated useful lives. Pro Forma Financial Information – 2015 Acquisition Activity (unaudited) The acquired companies were consolidated into our financial statements starting on their respective acquisition dates. The aggregate net sales and operating income (loss) of the companies acquired was $23 million and $(112) million for 2015 . The following financial information, which excludes certain acquired companies for which the pro forma impact is not meaningful, presents our results as if the acquisitions during 2015 had occurred at the beginning of 2014 (in millions): Year Ended December 31, 2015 2014 Net sales $ 107,054 $ 89,039 Net income (loss) $ 576 $ (311 ) 2014 Acquisition Activity On September 25, 2014 , we acquired Twitch Interactive, Inc. (“Twitch”) for approximately $842 million in cash, as adjusted for the assumption of options and other items. During 2014, we acquired certain other companies for an aggregate purchase price of $20 million . We acquired Twitch because of its user community and the live streaming experience it provides. The primary reasons for our other 2014 acquisitions were to acquire technologies and know-how to enable Amazon to serve customers more effectively. Acquisition-related costs were expensed as incurred and not significant. The aggregate purchase price of these acquisitions was allocated as follows (in millions): Purchase Price Cash paid, net of cash acquired $ 813 Stock options assumed 44 Indemnification holdback 5 $ 862 Allocation Goodwill $ 707 Intangible assets (1): Marketing-related 23 Contract-based 1 Technology-based 33 Customer-related 173 230 Property and equipment 16 Deferred tax assets 64 Other assets acquired 34 Deferred tax liabilities (88 ) Other liabilities assumed (101 ) $ 862 ___________________ (1) Acquired intangible assets have estimated useful lives of between one and five years, with a weighted-average amortization period of five years. The fair value of assumed stock options of $39 million , estimated using the Black-Scholes model, will be expensed over the remaining service period. We determined the estimated fair value of identifiable intangible assets acquired primarily by using the income approach. 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 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. 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. Goodwill The goodwill of the acquired companies is generally not deductible for tax purposes and is primarily related to expected improvements in technology performance and functionality, as well as sales growth from future product and service offerings and new customers, together with certain intangible assets that do not qualify for separate recognition. The following summarizes our goodwill activity in 2015 and 2014 by segment (in millions): North America International AWS Consolidated Goodwill - January 1, 2014 $ 2,033 $ 622 $ — $ 2,655 New acquisitions (1) 553 162 — 715 Other adjustments (2) (2 ) (49 ) — (51 ) Goodwill - December 31, 2014 2,584 735 — 3,319 Segment reallocation—January 1, 2015 (3) (606 ) — 606 — New acquisitions 41 18 423 482 Other adjustments (2) (7 ) (34 ) (1 ) (42 ) Goodwill - December 31, 2015 $ 2,012 $ 719 $ 1,028 $ 3,759 ___________________ (1) Primarily includes the goodwill of Twitch. (2) Primarily includes changes in foreign exchange rates. (3) In conjunction with the change in reportable segments, we reallocated goodwill on a relative fair value basis. Intangible Assets Acquired intangible assets, included within “Other assets” on our consolidated balance sheets, consist of the following (in millions): December 31, 2015 2014 Weighted Average Life Remaining Acquired Intangibles, Gross (1) Accumulated Amortization (1) Acquired Intangibles, Net Acquired Intangibles, Gross (1) Accumulated Amortization (1) Acquired Intangibles, Net Marketing-related 4.4 $ 457 $ (250 ) $ 207 $ 457 $ (199 ) $ 258 Contract-based 2.1 130 (99 ) 31 172 (125 ) 47 Technology- and content-based 3.9 559 (205 ) 354 370 (129 ) 241 Customer-related 3.6 331 (161 ) 170 535 (317 ) 218 Acquired intangibles (2) 3.9 $ 1,477 $ (715 ) $ 762 $ 1,534 $ (770 ) $ 764 ___________________ (1) Excludes the original cost and accumulated amortization of fully-amortized intangibles. (2) Intangible assets have estimated useful lives of between one and ten years. Amortization expense for acquired intangibles was $228 million , $181 million , and $168 million in 2015 , 2014 , and 2013 . Expected future amortization expense of acquired intangible assets as of December 31, 2015 is as follows (in millions): Year Ended December 31, 2016 $ 218 2017 191 2018 131 2019 103 2020 41 Thereafter 78 $ 762 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT In December 2014 and November 2012, we issued $6.0 billion and $3.0 billion of unsecured senior notes as described in the table below (collectively, the “Notes”). As of December 31, 2015 and 2014 , the unamortized discount on the Notes was $89 million and $96 million . We also have other long-term debt with a carrying amount, including the current portion, of $312 million and $881 million as of December 31, 2015 and 2014 . The face value of our total long-term debt obligations is as follows (in millions): December 31, 2015 2014 0.65% Notes due on November 27, 2015 $ — $ 750 1.20% Notes due on November 29, 2017 (1) 1,000 1,000 2.50% Notes due on November 29, 2022 (1) 1,250 1,250 2.60% Notes due on December 5, 2019 (2) 1,000 1,000 3.30% Notes due on December 5, 2021 (2) 1,000 1,000 3.80% Notes due on December 5, 2024 (2) 1,250 1,250 4.80% Notes due on December 5, 2034 (2) 1,250 1,250 4.95% Notes due on December 5, 2044 (2) 1,500 1,500 Other long-term debt 312 881 Total debt 8,562 9,881 Less current portion of long-term debt (238 ) (1,520 ) Face value of long-term debt $ 8,324 $ 8,361 _____________________________ (1) Issued in November 2012, effective interest rates of the 2017 and 2022 Notes were 1.38% and 2.66% . (2) Issued in December 2014, effective interest rates of the 2019, 2021, 2024, 2034, and 2044 Notes were 2.73% , 3.43% , 3.90% , 4.92% , and 5.11% . Interest on the Notes issued in 2014 is payable semi-annually in arrears in June and December . Interest on the Notes issued in 2012 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. The proceeds from the Notes are used for general corporate purposes. The estimated fair value of the Notes was approximately $8.5 billion and $9.1 billion as of December 31, 2015 and 2014 , which is based on quoted prices for our publicly-traded debt as of those dates. The other debt, including the current portion, had a weighted-average interest rate of 3.7% and 5.5% as of December 31, 2015 and 2014 . We used the net proceeds from the issuance of this debt primarily to 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, 2015 and 2014 . As of December 31, 2015 , future principal payments for our total debt were as follows (in millions): Year Ended December 31, 2016 $ 238 2017 1,037 2018 37 2019 1,000 2020 — Thereafter 6,250 $ 8,562 On September 5, 2014 , we entered into an unsecured revolving credit facility (the “Credit Agreement”) with a syndicate of lenders that provides us with a borrowing capacity of up to $2.0 billion . The Credit Agreement has a term of two years , but it may be extended for up to three additional one-year terms if approved by the lenders . The initial interest rate applicable to outstanding balances under the Credit Agreement is the London interbank offered rate (“ LIBOR ”) plus 0.625% , under our current credit ratings. If our credit ratings are downgraded this rate could increase to as much as LIBOR plus 1.00% . There were no borrowings outstanding under the Credit Agreement as of December 31, 2015 and 2014 . |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 Long-term capital lease obligations $ 4,212 $ 3,026 Long-term finance lease obligations 1,736 1,198 Construction liabilities 378 467 Tax contingencies 932 510 Long-term deferred tax liabilities 1,084 1,021 Other 1,584 1,188 Total other long-term liabilities $ 9,926 $ 7,410 Capital and Finance 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): December 31, 2015 Gross capital lease obligations $ 7,452 Less imputed interest (213 ) Present value of net minimum lease payments 7,239 Less current portion of capital lease obligations (3,027 ) Total long-term capital lease obligations $ 4,212 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 finance leases. Long-term finance lease obligations are as follows (in millions): December 31, 2015 Gross finance lease obligations $ 2,390 Less imputed interest (555 ) Present value of net minimum lease payments 1,835 Less current portion of finance lease obligations (99 ) Total long-term finance lease obligations $ 1,736 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. These liabilities primarily relate to our corporate buildings and fulfillment, sortation, delivery, and data centers. Tax Contingencies We have recorded tax reserves for tax contingencies, inclusive of accrued interest and penalties, for U.S. and foreign income taxes. These contingencies primarily relate to transfer pricing, state income taxes, and research and development credits. See “Note 10—Income Taxes” for discussion of tax contingencies. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments We have entered into non-cancellable operating, capital, and finance leases for equipment and office, fulfillment, sortation, delivery, data center, and renewable energy facilities. Rental expense under operating lease agreements was $1.1 billion , $961 million , and $759 million for 2015 , 2014 , and 2013 . The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations, as of December 31, 2015 (in millions): Year Ended December 31, 2016 2017 2018 2019 2020 Thereafter Total Debt principal and interest $ 526 $ 1,322 $ 310 $ 1,272 $ 246 $ 9,157 $ 12,833 Capital lease obligations, including interest 3,128 2,521 1,277 304 139 83 7,452 Finance lease obligations, including interest 166 168 172 176 178 1,530 2,390 Operating leases 1,181 897 800 698 616 2,325 6,517 Unconditional purchase obligations (1) 614 547 399 166 43 13 1,782 Other commitments (2) (3) 851 273 188 132 86 1,112 2,642 Total commitments $ 6,466 $ 5,728 $ 3,146 $ 2,748 $ 1,308 $ 14,220 $ 33,616 ___________________ (1) Includes unconditional purchase obligations related to long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets. For those agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified. (2) Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that have not been placed in service and digital media content liabilities associated with long-term digital media content assets with initial terms greater than one year. (3) Excludes $1.2 billion 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, 2015 and 2014 , we have pledged or otherwise restricted $418 million and $602 million of our cash, cash equivalents, and marketable securities, and certain property and equipment as collateral for standby and trade letters of credit, guarantees, debt relating to certain international operations, real estate leases, and amounts due to third-party sellers in certain jurisdictions. Suppliers During 2015 , 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 S.à r.l., 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 ECJ 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 August 2015, the Commercial Court of Vienna ruled that the Austrian tariff regime does not meet the conditions the ECJ set and dismissed Austro-Mechana’s claims. In September 2015, Austro-Mechana appealed that judgment to the Higher Commercial Court of Vienna. In December 2015, the Higher Commercial Court of Vienna confirmed that the Austrian tariff regime does not meet the conditions the ECJ set and dismissed Austro-Mechana’s appeal. A number of additional actions have been filed making similar allegations. In December 2012, a German copyright collection society, Zentralstelle für private Überspielungsrechte (“ZPU”), filed a complaint against Amazon EU S.à r.l., Amazon Media EU S.à r.l., Amazon Services Europe S.à r.l., Amazon Payments Europe SCA, Amazon Europe Holding Technologies SCS, and Amazon Eurasia Holdings S.à r.l. 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 S.à r.l. 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 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 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. In March 2014, the court invalidated the plaintiff’s patent and dismissed the case with prejudice, and the plaintiff appealed the judgment to the United States Court of Appeals for the Federal Circuit. In February 2015, the Federal Circuit reversed the judgment of the district court. 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, Washington, 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. In December 2014, the Supreme Court ruled in Busk that time spent waiting for and undergoing security screening is not compensable working time under the federal wage and hour statute. In February 2015, the courts in those actions alleging only federal law claims entered stipulated orders dismissing those actions without prejudice. We dispute any remaining 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. In August 2015, the court invalidated all asserted claims of all asserted patents and dismissed the case with prejudice. In September 2015, Personalized Media appealed that judgment to the United States Court of Appeals for the Federal Circuit. 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. In December 2014, the case was stayed pending resolution of review petitions filed with the United States Patent and Trademark Office. 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 damages, treble damages, costs, and interest. In March 2015, the case was transferred to the United States District Court for the Western District of Washington. In July 2015, the court granted our motion for judgment on the pleadings and invalidated the patents-in-suit. In August 2015, the court entered judgment in our favor. In September 2015, the plaintiff appealed that judgment to the United States Court of Appeals for the Federal Circuit, and filed a new complaint against Amazon.com, Inc. and Amazon Web Services, Inc. in the United States District Court for the Western District of Washington. The 2015 complaint alleges, among other things, that Amazon’s Elastic Compute Cloud, Simple Workflow, and Herd infringe U.S. Patent Nos. 8,682,959, entitled “System And Method For Fault Tolerant Processing Of Information Via Networked Computers Including Request Handlers, Process Handlers, And Task Handlers,” and 9,049,267, entitled “System And Method For Processing Information Via Networked Computers Including Request Handlers, Process Handlers, And Task Handlers.” The 2015 complaint seeks injunctive relief, an unspecified amount of damages, treble damages, costs, and interest. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters. In March 2014, Kaavo, Inc. filed a complaint against Amazon.com, Inc. and Amazon Web Services, Inc. for patent infringement in the United States District Court for the District of Delaware. The complaint alleges, among other things, that Amazon Web Services’ Elastic Beanstalk and CloudFormation infringe U.S. Patent No. 8,271,974, entitled “Cloud Computing Lifecycle Management For N-Tier Applications.” The complaint seeks injunctive relief, an unspecified amount of damages, costs, and interest. In June 2015, the case was stayed pending resolution of a motion for judgment on the pleadings in a related case. In July 2015, Kaavo Inc. filed another complaint against Amazon.com, Inc. and Amazon Web Services, Inc. in the United States District Court for the District of Delaware. The 2015 complaint alleges, among other things, that CloudFormation infringes U.S. Patent No. 9,043,751, entitled “Methods And Devices For Managing A Cloud Computing Environment.” The 2015 complaint seeks injunctive relief, an unspecified amount of damages, enhanced damages, attorneys’ fees, costs, and interest. In January 2016, the 2015 case was stayed pending resolution of a motion for judgment on the pleadings. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters. In December 2014, Smartflash LLC and Smartflash Technologies Limited filed a complaint against Amazon.com, Inc., Amazon.com, LLC, AMZN Mobile, LLC, Amazon Web Services, Inc. and Audible, Inc. for patent infringement in the United States District Court for the Eastern District of Texas. The complaint alleges, among other things, that Amazon Appstore, Amazon Instant Video, Amazon Music, Audible Audiobooks, the Amazon Mobile Ad Network, certain Kindle and Fire devices, Kindle e-bookstore, Amazon’s proprietary Android operating system, and the servers involved in operating Amazon Appstore, Amazon Instant Video, Amazon Music, the Fire TV app, Audible Audiobooks, Cloud Drive, Cloud Player, Amazon Web Services, and Amazon Mobile Ad Network infringe seven related U.S. Patents: Nos. 7,334,720; 7,942,317; 8,033,458; 8,061,598; 8,118,221; 8,336,772; and 8,794,516, all entitled “Data Storage and Access Systems.” In May 2015, the case was stayed until further notice. 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. In March 2015, Zitovault, LLC filed a complaint against Amazon.com, Inc., Amazon.com, LLC, Amazon Web Services, Inc., and Amazon Web Services, LLC for patent infringement in the United States District Court for the Eastern District of Texas. The complaint alleges that Elastic Compute Cloud, Virtual Private Cloud, Elastic Load Balancing, Auto-Scaling, and Elastic Beanstalk infringe U.S. Patent No. 6,484,257, entitled “System and Method for Maintaining N Number of Simultaneous Cryptographic Sessions Using a Distributed Computing Environment.” The complaint seeks injunctive relief, an unspecified amount of damages, enhanced damages, attorneys’ fees, costs, and interest. In January 2016, the case was transferred to the United States District Court for the Western District of Washington. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter. In June 2015, the European Commission opened a proceeding against Amazon.com, Inc. and Amazon EU S.à r.l. to investigate whether provisions in Amazon’s contracts with European publishers violate European competition rules. We believe we comply with European competition rules and are cooperating with the Commission. In November 2015, Eolas Technologies, Inc. filed a complaint against Amazon.com, Inc. in the United States District Court for the Eastern District of Texas. The complaint alleges, among other things, that the use of “interactive features” on www.amazon.com, including “search suggestions and search results,” infringes U.S. Patent No. 9,195,507, entitled “Distributed Hypermedia Method and System for Automatically Invoking External Application Providing Interaction and Display of Embedded Objects Within A Hypermedia Document.” The complaint seeks a judgment of infringement together with costs and attorneys’ fees. 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 losses 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 10—Income Taxes.” |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
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 490 million , 483 million , and 476 million , as of December 31, 2015 , 2014 , and 2013 . 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 and stock options over the corresponding service term, generally between two and five years . Stock Award Activity Stock options outstanding, which were primarily obtained through acquisitions, totaled 0.2 million, 0.4 million and 0.2 million, as of December 31, 2015 , 2014 , and 2013 . The compensation expense for stock options, the total intrinsic value for stock options outstanding, the amount of cash received from the exercise of stock options, and the related tax benefits were not material for 2015 , 2014 , and 2013 . 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, 2013 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 Units granted 8.5 328 Units vested (5.1 ) 202 Units forfeited (2.3 ) 264 Outstanding as of December 31, 2014 17.4 285 Units granted 9.8 426 Units vested (5.6 ) 253 Units forfeited (2.7 ) 321 Outstanding as of December 31, 2015 18.9 $ 362 Scheduled vesting for outstanding restricted stock units as of December 31, 2015 , is as follows (in millions): Year Ended December 31, 2016 2017 2018 2019 2020 Thereafter Total Scheduled vesting—restricted stock units 6.4 7.0 3.6 1.6 0.1 0.2 18.9 As of December 31, 2015 , there was $3.1 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements. This compensation is recognized on an accelerated basis with approximately half of the compensation expected to be expensed in the next twelve months, and has a weighted-average recognition period of 1.1 years. During 2015 , 2014 , and 2013 , the fair value of restricted stock units that vested was $2.7 billion , $1.7 billion , and $1.4 billion . As matching contributions under our 401(k) savings plan, we granted 0.2 million shares of common stock in 2015 and 2014 . Shares granted as matching contributions under our 401(k) plan are included in outstanding common stock when issued, and recorded as stock-based compensation expense. Common Stock Available for Future Issuance As of December 31, 2015 , common stock available for future issuance to employees is 130 million shares. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in the composition of accumulated other comprehensive loss for 2015 , 2014 , and 2013 are as follows (in millions): Foreign currency translation adjustments Unrealized gains on available-for-sale securities Total Balances as of January 1, 2013 $ (250 ) $ 11 $ (239 ) Other comprehensive income (loss) 63 (9 ) 54 Balances as of December 31, 2013 (187 ) 2 (185 ) Other comprehensive income (loss) (325 ) (1 ) (326 ) Balances as of December 31, 2014 (512 ) 1 (511 ) Other comprehensive income (loss) (210 ) (2 ) (212 ) Balances as of December 31, 2015 $ (722 ) $ (1 ) $ (723 ) 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, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES In 2015 , 2014 , and 2013 , we recorded net tax provisions of $950 million , $167 million , and $161 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. In December 2015, U.S. legislation was enacted that extended accelerated depreciation deductions on qualifying property through 2019 and made permanent the U.S. federal research and development credit. As such, cash taxes paid, net of refunds, were $273 million , $177 million , and $169 million for 2015 , 2014 , and 2013 . The components of the provision for income taxes, net are as follows (in millions): Year Ended December 31, 2015 2014 2013 Current taxes: U.S. Federal $ 215 $ 214 $ 99 U.S. State 237 65 45 International 417 204 173 Current taxes 869 483 317 Deferred taxes: U.S. Federal 473 (125 ) (114 ) U.S. State (171 ) (11 ) (19 ) International (221 ) (180 ) (23 ) Deferred taxes 81 (316 ) (156 ) Provision for income taxes, net $ 950 $ 167 $ 161 U.S. and international components of income before income taxes are as follows (in millions): Year Ended December 31, 2015 2014 2013 U.S. $ 2,186 $ 292 $ 704 International (618 ) (403 ) (198 ) Income (loss) before income taxes $ 1,568 $ (111 ) $ 506 The items accounting for differences between income taxes computed at the federal statutory rate and the provision recorded for income taxes are as follows (in millions): Year Ended December 31, 2015 2014 2013 Income taxes computed at the federal statutory rate $ 549 $ (39 ) $ 177 Effect of: Impact of foreign tax differential 350 136 (41 ) State taxes, net of federal benefits 37 29 14 Tax credits (99 ) (85 ) (84 ) Nondeductible compensation 149 117 86 Domestic production activities deduction (44 ) (20 ) (11 ) Other, net 8 29 20 Total $ 950 $ 167 $ 161 Our provision for income taxes in 2015 was higher than in 2014 primarily due to an increase in U.S. pre-tax income and increased losses in certain foreign subsidiaries for which we may not realize a tax benefit. Losses for which we may not realize a related tax benefit, primarily due to losses of foreign subsidiaries, reduce our pre-tax income without a corresponding reduction in our tax expense, and therefore increase our effective tax rate. We have recorded valuation allowances against the deferred tax assets associated with losses for which we may not realize a related tax benefit. We generated income in lower tax jurisdictions primarily related to our European operations, which are headquartered in Luxembourg. Our provision for income taxes in 2014 was higher than in 2013 primarily due to the increased losses in certain foreign subsidiaries for which we may not realize a tax benefit and audit-related developments, partially offset by the favorable impact of earnings in lower tax rate jurisdictions. Losses for which we may not realize a related tax benefit were primarily generated by our foreign subsidiaries. Income earned in lower tax jurisdictions was primarily related to our European operations. Except as required under U.S. tax laws, 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 and our effective tax rate would be adversely affected. Undistributed earnings of foreign subsidiaries that are indefinitely invested outside of the U.S were $1.5 billion as of December 31, 2015 . Determination of the unrecognized deferred tax liability that would be incurred if such amounts were repatriated is not practicable. Deferred income tax assets and liabilities are as follows (in millions): December 31, 2015 2014 Deferred tax assets (1): Net operating losses U.S. - Federal/States (2) $ 107 $ 357 Net operating losses foreign (3) 856 669 Accrued liabilities, reserves, & other expenses 854 780 Stock-based compensation 727 534 Deferred revenue 189 156 Assets held for investment 148 154 Depreciation & amortization 222 117 Other items 268 125 Tax credits (4) 41 115 Total gross deferred tax assets 3,412 3,007 Less valuation allowance (5) (1,069 ) (901 ) Deferred tax assets, net of valuation allowance 2,343 2,106 Deferred tax liabilities: Depreciation & amortization (1,970 ) (1,609 ) Acquisition related intangible assets (203 ) (195 ) Other items (88 ) (31 ) Net deferred tax assets, net of valuation allowance $ 82 $ 271 ___________________ (1) Deferred tax assets related to net operating losses and tax credits are presented net of tax contingencies. (2) Excluding $380 million and $261 million of deferred tax assets as of December 31, 2015 and 2014 , 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 $2 million of deferred tax assets as of December 31, 2015 and 2014 , related to net operating losses that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. (4) Excluding $447 million and $268 million of deferred tax assets as of December 31, 2015 and 2014 , related to tax credits that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. (5) 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, 2015 , our federal, foreign, and state net operating loss carryforwards for income tax purposes were approximately $1.1 billion , $3.4 billion , and $2.0 billion . 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 2020 , 2016 , and 2016 , respectively. As of December 31, 2015 , our tax credit carryforwards for income tax purposes were approximately $725 million . If not utilized, a portion of the tax credit carryforwards will begin to expire in 2017 . The Company’s consolidated balance sheets reflect deferred tax assets related to net operating losses and tax credit carryforwards excluding amounts resulting from excess stock-based compensation. Amounts related to 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. (federal and state) and numerous foreign jurisdictions. Significant judgment is required in evaluating our tax positions and determining our provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when we believe that certain positions might be challenged despite our belief that our tax return positions are fully supportable. We adjust these reserves in light of changing facts and circumstances, such as the outcome of tax audits. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate. The reconciliation of our tax contingencies is as follows (in millions): December 31, 2015 2014 2013 Gross tax contingencies – January 1 $ 710 $ 407 $ 294 Gross increases to tax positions in prior periods 254 351 78 Gross decreases to tax positions in prior periods (22 ) (50 ) (18 ) Gross increases to current period tax positions 242 20 54 Audit settlements paid — (16 ) (1 ) Lapse of statute of limitations (3 ) (2 ) — Gross tax contingencies – December 31 (1) $ 1,181 $ 710 $ 407 ___________________ (1) As of December 31, 2015 , we had $1.2 billion of tax contingencies, of which $882 million , if fully recognized, would decrease our effective tax rate. As of December 31, 2015 and 2014 , we had accrued interest and penalties, net of federal income tax benefit, related to tax contingencies of $59 million and $41 million . Interest and penalties, net of federal income tax benefit, recognized for the years ended December 31, 2015 , 2014 , and 2013 was $18 million , $8 million , and $8 million . We are under examination, or may be subject to examination, by the Internal Revenue Service (“IRS”) for the calendar year 2005 and thereafter. These examinations may lead to ordinary course adjustments or proposed adjustments to our taxes or our net operating losses with respect to years under examination as well as subsequent periods. As previously disclosed, we have received Notices of Proposed Adjustment from the IRS for transactions undertaken in the 2005 and 2006 calendar years relating to transfer pricing with our foreign subsidiaries. The IRS is seeking to increase our U.S. taxable income by an amount that would result in additional federal tax of approximately $1.5 billion , subject to interest. To date, we have not resolved this matter administratively and are currently contesting it in U.S. Tax Court. We continue to disagree with these IRS positions and intend to defend ourselves vigorously in this matter. In addition to the risk of additional tax for 2005 and 2006 transactions, if this litigation is adversely determined or if the IRS were to seek transfer pricing adjustments of a similar nature for transactions in subsequent years, we could be subject to significant additional tax liabilities. 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 and thereafter. These examinations may lead to ordinary course adjustments or proposed adjustments to our taxes. In September 2012, we received proposed tax assessment notices for calendar years 2006 through 2010 relating to the allocation of income between foreign jurisdictions. In June 2015, we received final tax collection notices for these years assessing additional French tax of €196 million , including interest and penalties through September 2012. We disagree with the 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. In addition to the risk of additional tax for years 2006 through 2010, if this litigation is adversely determined or if the FTA were to seek adjustments of a similar nature for subsequent years, we could be subject to significant additional tax liabilities. In addition, in October 2014, the European Commission opened a formal investigation to examine whether decisions by the tax authorities in Luxembourg with regard to the corporate income tax paid by certain of our subsidiaries comply with European Union rules on state aid. If this matter is adversely resolved, Luxembourg may be required to assess, and we may be required to pay, additional amounts with respect to current and prior periods and our taxes in the future could increase. We are also subject to taxation in various states and other foreign jurisdictions including Canada, China, Germany, India, Japan, Luxembourg, and the United Kingdom. We are under, or may be subject to, audit or examination and additional assessments in respect of these particular jurisdictions for 2003 and thereafter. We expect the total amount of tax contingencies will grow in 2016 . 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 2015 . 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, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Beginning in the first quarter of 2015, we changed our reportable segments to North America, International, and AWS. These segments reflect the way the Company evaluates its business performance and manages its operations. We allocate to segment results the operating expenses “Fulfillment,” “Marketing,” “Technology and content,” and “General and administrative” based on usage, which is generally reflected in the segment in which the costs are incurred. The majority of technology infrastructure costs are allocated to the AWS segment based on usage. The majority of the remaining non-infrastructure technology costs are incurred in the U.S. and are allocated to our North America segment. We exclude from our allocations the portions of these operating expense lines attributable to stock-based compensation. We do not allocate the line item “Other operating expense (income), net” to our segment operating results. There are no internal revenue transactions between our reportable segments. North America The North America segment consists primarily of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America-focused websites such as www.amazon.com, www.amazon.ca, and www.amazon.com.mx. This segment includes export sales from these websites. International The International segment consists primarily of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused websites such as www.amazon.com.au, www.amazon.com.br, www.amazon.cn, www.amazon.fr, www.amazon.de, www.amazon.in, www.amazon.it, www.amazon.co.jp, www.amazon.nl, www.amazon.es, and www.amazon.co.uk. This segment includes export sales from these internationally-focused websites (including export sales from these sites to customers in the U.S., Mexico, and Canada), but excludes export sales from our North American websites. AWS The AWS segment consists of amounts earned from global sales of compute, storage, database, and other AWS service offerings for start-ups, enterprises, government agencies, and academic institutions. Information on reportable segments and reconciliation to consolidated net income (loss) is as follows (in millions): Year Ended December 31, 2015 2014 2013 North America Net sales $ 63,708 $ 50,834 $ 41,410 Segment operating expenses (1) 60,957 49,542 40,244 Segment operating income (loss) $ 2,751 $ 1,292 $ 1,166 International Net sales $ 35,418 $ 33,510 $ 29,934 Segment operating expenses (1) 35,509 33,654 29,780 Segment operating income (loss) $ (91 ) $ (144 ) $ 154 AWS Net sales $ 7,880 $ 4,644 $ 3,108 Segment operating expenses (1) 6,017 3,984 2,435 Segment operating income (loss) $ 1,863 $ 660 $ 673 Consolidated Net sales $ 107,006 $ 88,988 $ 74,452 Segment operating expenses (1) 102,483 87,180 72,459 Segment operating income (loss) 4,523 1,808 1,993 Stock-based compensation (2,119 ) (1,497 ) (1,134 ) Other operating income (expense), net (171 ) (133 ) (114 ) Income from operations 2,233 178 745 Total non-operating income (expense) (665 ) (289 ) (239 ) Provision for income taxes (950 ) (167 ) (161 ) Equity-method investment activity, net of tax (22 ) 37 (71 ) Net income (loss) $ 596 $ (241 ) $ 274 ___________________ (1) Excludes stock-based compensation and “Other operating expense (income), net,” which are not allocated to segments. We have aggregated our products and services into groups of similar products and services and provided the supplemental disclosure of net sales (in millions) below. We evaluate whether additional disclosure is appropriate when a product or service category begins to approach a significant level of net sales. For the periods presented, no individual product or service represented more than 10% of net sales. Year Ended December 31, 2015 2014 2013 Net Sales: Media $ 22,509 $ 22,505 $ 21,716 Electronics and other general merchandise 75,597 60,886 48,802 AWS 7,880 4,644 3,108 Other (1) 1,020 953 826 $ 107,006 $ 88,988 $ 74,452 ___________________ (1) Includes sales from non-retail activities, such as certain advertising services, and our co-branded credit card agreements. Net sales generated from our internationally-focused websites are denominated in local functional currencies. Revenues are translated at average rates prevailing throughout the period. Net sales attributed to countries that represent a significant portion of consolidated net sales are as follows (in millions): Year Ended December 31, 2015 2014 2013 United States $ 70,537 $ 54,717 $ 43,959 Germany 11,816 11,919 10,535 United Kingdom 9,033 8,341 7,291 Japan 8,264 7,912 7,639 Rest of world 7,356 6,099 5,028 Consolidated $ 107,006 $ 88,988 $ 74,452 Total segment assets exclude corporate assets, such as cash and cash equivalents, marketable securities, other long-term investments, corporate facilities, goodwill and other acquired intangible assets, capitalized internal-use software and website development costs, and tax assets. Technology infrastructure assets are allocated among the segments based on usage, with the majority allocated to the AWS segment. Total segment assets reconciled to consolidated amounts are as follows (in millions): December 31, 2015 2014 2013 North America (1) $ 16,772 $ 13,257 $ 9,991 International (1) 7,754 6,747 6,199 AWS (2) 9,787 6,981 3,840 Corporate 31,131 27,520 20,129 Consolidated $ 65,444 $ 54,505 $ 40,159 ___________________ (1) North America and International segment assets primarily consist of inventory, accounts receivable, and property and equipment. (2) AWS segment assets primarily consist of property and equipment and accounts receivable. Property and equipment, net by segment is as follows (in millions): December 31, 2015 2014 2013 North America $ 6,707 $ 5,373 $ 3,477 International 2,266 2,000 1,549 AWS 8,356 6,043 3,253 Corporate 4,509 3,551 2,670 Consolidated $ 21,838 $ 16,967 $ 10,949 Total property and equipment additions by segment are as follows (in millions): Year Ended December 31, 2015 2014 2013 North America (1) $ 2,485 $ 2,833 $ 2,326 International (1) 658 767 851 AWS (2) 4,681 4,295 2,215 Corporate 1,801 1,586 981 Consolidated $ 9,625 $ 9,481 $ 6,373 ___________________ (1) Includes property and equipment added under capital leases of $938 million , $887 million , and $555 million in 2015 , 2014 , and 2013 , and under other financing arrangements of $219 million , $599 million , and $715 million in 2015 , 2014 , and 2013 . (2) Includes property and equipment added under capital leases of $3.7 billion , $3.0 billion , and $1.3 billion in 2015 , 2014 , and 2013 and under finance leases of $81 million , $62 million , and $67 million in 2015 , 2014 , and 2013 . U.S. property and equipment, net was $16.8 billion , $13.1 billion , and $8.4 billion , in 2015 , 2014 , and 2013 , and rest of world property and equipment, net was $5.0 billion , $3.8 billion , and $2.5 billion in 2015 , 2014 , and 2013 . 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, including amortization of capitalized internal-use software and website development costs and other corporate property and equipment depreciation expense, are allocated to all segments based on usage. Total depreciation expense, by segment, is as follows (in millions): Year Ended December 31, 2015 2014 2013 North America $ 1,551 $ 1,203 $ 914 International 822 740 583 AWS 2,576 1,673 963 Consolidated $ 4,949 $ 3,616 $ 2,460 |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 and 2014 . 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, 2015 (1) Fourth Quarter Third Quarter Second Quarter First Quarter Net sales $ 35,747 $ 25,358 $ 23,185 $ 22,717 Income (loss) from operations 1,108 406 464 255 Income (loss) before income taxes 938 247 362 21 Provision for income taxes (453 ) (161 ) (266 ) (71 ) Net income (loss) 482 79 92 (57 ) Basic earnings per share 1.03 0.17 0.20 (0.12 ) Diluted earnings per share 1.00 0.17 0.19 (0.12 ) Shares used in computation of earnings per share: Basic 470 468 467 465 Diluted 481 478 476 465 Year Ended December 31, 2014 (1) Fourth Quarter Third Quarter Second Quarter First Quarter Net sales $ 29,328 $ 20,579 $ 19,340 $ 19,741 Income (loss) from operations 591 (544 ) (15 ) 146 Income (loss) before income taxes 429 (634 ) (27 ) 120 Benefit (provision) for income taxes (205 ) 205 (94 ) (73 ) Net income (loss) 214 (437 ) (126 ) 108 Basic earnings per share 0.46 (0.95 ) (0.27 ) 0.23 Diluted earnings per share 0.45 (0.95 ) (0.27 ) 0.23 Shares used in computation of earnings per share: Basic 464 463 461 460 Diluted 472 463 461 468 ___________________ (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 A22
Description of Business and Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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 segments, we serve our primary customer sets, consisting of consumers, sellers, developers, 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 our AWS segment, 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 three segments: North America, International, and AWS. See “Note 11—Segment Information.” |
Prior Period Reclassifications | Prior Period Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation, including recasting the segment financial information within “Note 11—Segment Information” as a result of changing our reportable segments to include an AWS segment. |
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, including certain entities in India and China (collectively, the “Company”). 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 amortization period 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 and website development costs, 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 have a net loss, stock awards are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect. In 2014, we excluded stock awards of 17 million . |
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 service has 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 relative 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 the cost of producing the product or service. Sales of our digital devices, including Kindle e-readers, Fire tablets, Fire TVs, and Echo, are considered arrangements with multiple deliverables, consisting of the device, undelivered software upgrades and/or undelivered non-software services such as cloud storage and free trial memberships to other services. The revenue allocated to the device, which is the substantial portion of the total sale price, and related costs are generally recognized upon delivery. Revenue related to undelivered software upgrades and/or undelivered non-software services is deferred and recognized generally on a straight-line basis over the estimated period the software upgrades and non-software services are expected to be provided for each of these devices. Sales of Amazon Prime memberships are also considered arrangements with multiple deliverables, including shipping benefits, Prime Video, Prime Music, Prime Photos, and access to the Kindle Owners’ Lending Library. The revenue related to the deliverables is amortized over the life of the membership based on the estimated delivery of services. Amazon Prime membership fees are allocated between product sales and service sales. Costs to deliver Amazon Prime benefits are recognized as cost of sales as incurred. As we add more benefits to the Prime membership, we will update the method of determining the estimated selling prices of each element as well as the allocation of Prime membership fees. 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 fixed fees, a percentage of seller revenues, per-unit activity fees, or some combination thereof. Product sales represent revenue from the sale of products and related shipping fees and digital media content where we record revenue gross. 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. 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. Amazon’s electronic devices sold through retailers are recognized at the point of sale to consumers. Service sales represent third-party seller fees earned (including commissions) and related shipping fees, AWS sales, digital content subscriptions, advertising services, and our co-branded credit card agreements. Service sales, net of promotional discounts and return allowances, are recognized when service has been rendered. Return allowances, which reduce revenue, are estimated using historical experience. Allowance for returns was $153 million , $147 million , and $167 million as of December 31, 2015 , 2014 , and 2013 . Additions to the allowance were $1.3 billion , $1.1 billion , and $907 million , and deductions to the allowance were $1.3 billion , $1.1 billion , and $938 million in 2015 , 2014 , and 2013 . 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 primarily consists of the purchase price of consumer products, digital media content costs where we record revenue gross, including Prime Video and Prime Music, packaging supplies, sortation and delivery centers and related equipment costs, and inbound and outbound shipping costs, including where we are the transportation service provider. Shipping costs to receive products from our suppliers are included in our inventory, and recognized as cost of sales upon sale of products to our customers. Payment processing and related transaction costs, including those associated with seller transactions, are classified in “Fulfillment” on our consolidated statements of operations. |
Vendor Agreements | Vendor Agreements We have agreements with our vendors to receive funds for advertising services, 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, including property and equipment, or services, and therefore record those amounts as a reduction of the cost of inventory, cost of services, or cost of property and equipment. 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 primarily consist of those costs incurred in operating and staffing our North America and International segments’ 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 primarily consist of targeted online advertising, television advertising, public relations expenditures, and payroll and related expenses for personnel engaged in marketing 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 $3.8 billion , $3.3 billion , and $2.4 billion in 2015 , 2014 , and 2013 . Prepaid advertising costs were not significant as of December 31, 2015 and 2014 . |
Technology and Content | Technology and Content Technology costs consist principally of research and development activities including payroll and related expenses for employees involved in application, production, maintenance, operation, and platform development for new and existing products and services, as well as AWS and other technology infrastructure expenses. Content costs consist principally of payroll and related expenses for employees involved in category expansion, editorial content, buying, and merchandising selection. 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 primarily consist of payroll and related expenses; facilities and equipment, such as depreciation expense and rent; professional fees and litigation costs; and other general corporate costs for corporate functions, including accounting, finance, tax, legal, and human resources, among others. |
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, and the fair value of stock options is estimated on the date of grant using a Black-Scholes model. Such value is recognized as expense over the service period, net of estimated forfeitures, using the accelerated method. The estimated number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. We consider many factors when estimating expected forfeitures, including employee level, economic conditions, time remaining to vest, and historical forfeiture experience. |
Other Operating Expense (Income), Net | Other Operating Expense (Income), Net Other operating expense (income), net, consists primarily of marketing-related, contract-based, and customer-related 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 losses of $(266) million , $(127) million , and $(137) million in 2015 , 2014 , and 2013 , and realized gains (losses) on marketable securities sales of $(5) million , $3 million , and $(1) million in 2015 , 2014 , and 2013 . |
Income Taxes | Income Taxes Income tax expense includes U.S. (federal and state) and foreign income taxes. Except as required under U.S. tax laws, 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 and our effective tax rate would be adversely affected. Undistributed earnings of foreign subsidiaries that are indefinitely invested outside of the U.S were $1.5 billion as of December 31, 2015 . 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 they will not be realized. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent cumulative 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 our tax positions and estimating our tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. We include interest and penalties related to our tax contingencies in income tax expense. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1 —Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 —Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 —Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. For our cash, cash equivalents, or marketable securities, 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 assets as of December 31, 2015 , or December 31, 2014 . As part of entering into commercial agreements, we often obtain equity warrant assets giving us the right to acquire stock primarily in private companies. We record these assets in “Other assets” on the accompanying consolidated balance sheets. Equity warrant assets are classified as Level 3 assets, and the balances and related activity for our equity warrant assets were not significant for the periods ended December 31, 2015 , 2014 , and 2013 . |
Cash and Cash Equivalents | Cash and Cash Equivalents We classify all highly liquid instruments with an original maturity of three months or less as cash equivalents. |
Inventories | Inventories Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out (“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. We also purchase electronic device components from a variety of suppliers and use several contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, we enter into agreements with contract manufacturers and suppliers. A portion of our reported purchase commitments arising from these agreements consists of firm, non-cancellable commitments. These commitments are based on forecasted customer demand. If we reduce these commitments, we may incur additional costs. |
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 customer and seller receivables and vendor receivables. As of December 31, 2015 and 2014 , customer and seller receivables, net, were $2.6 billion and $1.9 billion , and vendor receivables, net, were $1.8 billion and $1.4 billion . 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 $189 million , $190 million , and $153 million as of December 31, 2015 , 2014 , and 2013 . Additions to the allowance were $289 million , $225 million , and $172 million , and deductions to the allowance were $290 million , $188 million , and $135 million in 2015 , 2014 , and 2013 . |
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 2015 , 2014 , and 2013 , we capitalized $642 million (including $114 million of stock-based compensation), $641 million (including $104 million of stock-based compensation), and $581 million (including $87 million of stock-based compensation) of costs associated with internal-use software and website development. Amortization of previously capitalized amounts was $635 million , $559 million , and $451 million for 2015 , 2014 , and 2013 . |
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 finance 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 the carrying value may not be recoverable. In testing for goodwill impairment, we may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If our qualitative assessment indicates that goodwill impairment is more likely than not, we perform a two-step impairment test. We test goodwill for impairment under the two-step impairment test 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. During the second quarter of 2015, we changed the measurement date of our annual goodwill impairment test from October 1 to April 1 . This change was not material to our consolidated financial statements as it did not result in the delay, acceleration, or avoidance of an impairment charge. We believe this timing better aligns the goodwill impairment test with our strategic business planning process, which is a key component of the goodwill impairment test. We completed the required annual testing of goodwill for impairment for all reporting units as of April 1, 2015, and determined that goodwill is not impaired. There were no triggering events identified from the date of our assessment through December 31, 2015 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; video and music 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; intellectual property rights, net of amortization; and equity warrant assets. |
Video and Music Content | Video and Music Content We obtain video and music content to be made available to Prime members 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, television, or music 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 to “Cost of sales” on a straight-line basis or on an accelerated basis, based on estimated viewing patterns 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. We also develop original content. The production costs of internally developed content are capitalized only if persuasive evidence exists that the production will generate revenue. Prior to 2015, because we had limited history to support the economic benefits of our content, we generally expensed such costs as incurred. In 2015, we began capitalizing a portion of production costs as we have developed more experience to support that future revenue will be earned. Capitalized internally developed costs are generally amortized to “Cost of sales” on an accelerated basis that follows the viewing pattern of customer streams in the first months after availability. |
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. Equity-method investments are included within “Other assets” on our consolidated balance sheets. Our share of the earnings or losses as reported by equity-method investees, amortization of basis differences, and related gains or losses, if any, are classified as “Equity - method investment activity, net of tax” on our consolidated statements of operations. Equity investments without readily determinable fair values and 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” on 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, 2015 or 2014 . |
Accrued Expenses and Other | Accrued Expenses and Other Included in “Accrued expenses and other” on our consolidated balance sheets are liabilities primarily related to unredeemed gift cards, leases and asset retirement obligations, current debt, acquired digital media content, and other operating expenses. As of December 31, 2015 and 2014 , our liabilities for unredeemed gift cards was $2.0 billion and $1.7 billion . 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 prepayments of Amazon Prime memberships and AWS services. |
Foreign Currency | Foreign Currency We have internationally-focused websites for Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, the Netherlands, Spain, and the United Kingdom . 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 generally the same as the local currency. Assets and liabilities of these subsidiaries are translated into U.S. Dollars at period-end foreign exchange rates, and revenues and expenses are translated at average rates prevailing throughout the period. Translation adjustments are included in “Accumulated other comprehensive 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 losses of $215 million , $98 million , and $84 million in 2015 , 2014 , and 2013 . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB deferred the effective date of the revenue recognition guidance to reporting periods beginning after December 15, 2017. Early adoption is permitted for reporting periods beginning after December 15, 2016. We are continuing to evaluate our method of adoption and the impact this ASU, and related amendments and interpretations, will have on our consolidated financial statements. In July 2015, the FASB issued an ASU modifying the accounting for inventory. Under this ASU, the measurement principle for inventory will change from lower of cost or market value to lower of cost and net realizable value. The ASU defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The ASU is applicable to inventory that is accounted for under the first-in, first-out method and is effective for reporting periods after December 15, 2016, with early adoption permitted. We do not expect adoption to have a material impact on our consolidated financial statements. In November 2015, the FASB issued an ASU amending the accounting for income taxes and requiring all deferred tax assets and liabilities to be classified as non-current on the consolidated balance sheet. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The ASU may be adopted either prospectively or retrospectively. We are currently evaluating the method of adoption and expect this ASU will have an impact on our consolidated balance sheets as our current deferred tax assets were $769 million and current deferred tax liabilities were $13 million as of December 31, 2015. |
Description of Business and A23
Description of Business and Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Shares used in computation of basic earnings per share 467 462 457 Total dilutive effect of outstanding stock awards 10 — 8 Shares used in computation of diluted earnings per share 477 462 465 |
Cash, Cash Equivalents, and M24
Cash, Cash Equivalents, and Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value Cash $ 6,201 $ — $ — $ 6,201 Level 1 securities: Money market funds 8,025 — — 8,025 Equity securities 4 11 — 15 Level 2 securities: Foreign government and agency securities 49 — — 49 U.S. government and agency securities 5,171 1 (5 ) 5,167 Corporate debt securities 479 — (2 ) 477 Asset-backed securities 118 — (1 ) 117 Other fixed income securities 42 — — 42 $ 20,089 $ 12 $ (8 ) $ 20,093 Less: Restricted cash, cash equivalents, and marketable securities (1) (285 ) Total cash, cash equivalents, and marketable securities $ 19,808 December 31, 2014 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value Cash $ 4,155 $ — $ — $ 4,155 Level 1 securities: Money market funds 10,718 — — 10,718 Equity securities 2 2 — 4 Level 2 securities: Foreign government and agency securities 80 — — 80 U.S. government and agency securities 2,407 1 (2 ) 2,406 Corporate debt securities 401 1 (1 ) 401 Asset-backed securities 69 — — 69 Other fixed income securities 33 — — 33 $ 17,865 $ 4 $ (3 ) $ 17,866 Less: Restricted cash, cash equivalents, and marketable securities (1) (450 ) Total cash, cash equivalents, and marketable securities $ 17,416 ___________________ (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, real estate leases, and amounts due to third-party sellers in certain jurisdictions. We classify cash, cash equivalents, and marketable securities with use restrictions of less than twelve months as “Accounts receivable, net and other” and of twelve months or longer as non-current “Other assets” on our consolidated balance sheets. See “Note 7—Commitments and Contingencies.” |
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, 2015 2014 2013 Realized gains $ 2 $ 8 $ 6 Realized losses 7 5 7 |
Investments Classified by Contractual Maturity Date | The following table summarizes the contractual maturities of our cash equivalents and marketable fixed-income securities as of December 31, 2015 (in millions): Amortized Cost Estimated Fair Value Due within one year $ 12,533 $ 12,531 Due after one year through five years 1,086 1,084 Due after five years through ten years 96 95 Due after ten years 169 167 Total $ 13,884 $ 13,877 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment, at cost, consisted of the following (in millions): December 31, 2015 2014 Gross property and equipment (1): Land and buildings $ 9,770 $ 7,150 Equipment and internal-use software (2) 18,417 14,213 Other corporate assets 334 304 Construction in progress 1,532 1,063 Gross property and equipment 30,053 22,730 Total accumulated depreciation (1) 8,215 5,763 Total property and equipment, net $ 21,838 $ 16,967 ___________________ (1) Excludes the original cost and accumulated depreciation of fully-depreciated assets. (2) Includes internal-use software of $1.4 billion and $1.3 billion as of December 31, 2015 and 2014 . |
Acquisitions, Goodwill, and A26
Acquisitions, Goodwill, and Acquired Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions, Goodwill, and Acquired Intangible Assets [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The aggregate purchase price of these acquisitions was allocated as follows (in millions): Purchase Price Cash paid, net of cash acquired $ 813 Stock options assumed 44 Indemnification holdback 5 $ 862 Allocation Goodwill $ 707 Intangible assets (1): Marketing-related 23 Contract-based 1 Technology-based 33 Customer-related 173 230 Property and equipment 16 Deferred tax assets 64 Other assets acquired 34 Deferred tax liabilities (88 ) Other liabilities assumed (101 ) $ 862 ___________________ (1) Acquired intangible assets have estimated useful lives of between one and five 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 $ 599 Stock options and restricted stock units assumed 5 Indemnification holdback 86 $ 690 Allocation Goodwill $ 482 Intangible assets (1): Marketing-related 3 Contract-based 1 Technology-based 208 Customer-related 18 230 Property and equipment 4 Deferred tax assets 55 Other assets acquired 53 Deferred tax liabilities (85 ) Other liabilities assumed (49 ) $ 690 ___________________ (1) Acquired intangible assets have estimated useful lives of between one and six years, with a weighted-average amortization period of five years. |
Business Acquisitions Pro Forma Financial Information | The following financial information, which excludes certain acquired companies for which the pro forma impact is not meaningful, presents our results as if the acquisitions during 2015 had occurred at the beginning of 2014 (in millions): Year Ended December 31, 2015 2014 Net sales $ 107,054 $ 89,039 Net income (loss) $ 576 $ (311 ) |
Schedule of Goodwill | The following summarizes our goodwill activity in 2015 and 2014 by segment (in millions): North America International AWS Consolidated Goodwill - January 1, 2014 $ 2,033 $ 622 $ — $ 2,655 New acquisitions (1) 553 162 — 715 Other adjustments (2) (2 ) (49 ) — (51 ) Goodwill - December 31, 2014 2,584 735 — 3,319 Segment reallocation—January 1, 2015 (3) (606 ) — 606 — New acquisitions 41 18 423 482 Other adjustments (2) (7 ) (34 ) (1 ) (42 ) Goodwill - December 31, 2015 $ 2,012 $ 719 $ 1,028 $ 3,759 ___________________ (1) Primarily includes the goodwill of Twitch. (2) Primarily includes changes in foreign exchange rates. (3) In conjunction with the change in reportable segments, we reallocated goodwill on a relative fair value basis. |
Schedule of 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, 2015 2014 Weighted Average Life Remaining Acquired Intangibles, Gross (1) Accumulated Amortization (1) Acquired Intangibles, Net Acquired Intangibles, Gross (1) Accumulated Amortization (1) Acquired Intangibles, Net Marketing-related 4.4 $ 457 $ (250 ) $ 207 $ 457 $ (199 ) $ 258 Contract-based 2.1 130 (99 ) 31 172 (125 ) 47 Technology- and content-based 3.9 559 (205 ) 354 370 (129 ) 241 Customer-related 3.6 331 (161 ) 170 535 (317 ) 218 Acquired intangibles (2) 3.9 $ 1,477 $ (715 ) $ 762 $ 1,534 $ (770 ) $ 764 ___________________ (1) Excludes the original cost and accumulated amortization of fully-amortized intangibles. (2) Intangible assets have estimated useful lives of between one and ten years. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Expected future amortization expense of acquired intangible assets as of December 31, 2015 is as follows (in millions): Year Ended December 31, 2016 $ 218 2017 191 2018 131 2019 103 2020 41 Thereafter 78 $ 762 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt Obligations | The face value of our total long-term debt obligations is as follows (in millions): December 31, 2015 2014 0.65% Notes due on November 27, 2015 $ — $ 750 1.20% Notes due on November 29, 2017 (1) 1,000 1,000 2.50% Notes due on November 29, 2022 (1) 1,250 1,250 2.60% Notes due on December 5, 2019 (2) 1,000 1,000 3.30% Notes due on December 5, 2021 (2) 1,000 1,000 3.80% Notes due on December 5, 2024 (2) 1,250 1,250 4.80% Notes due on December 5, 2034 (2) 1,250 1,250 4.95% Notes due on December 5, 2044 (2) 1,500 1,500 Other long-term debt 312 881 Total debt 8,562 9,881 Less current portion of long-term debt (238 ) (1,520 ) Face value of long-term debt $ 8,324 $ 8,361 _____________________________ (1) Issued in November 2012, effective interest rates of the 2017 and 2022 Notes were 1.38% and 2.66% . (2) Issued in December 2014, effective interest rates of the 2019, 2021, 2024, 2034, and 2044 Notes were 2.73% , 3.43% , 3.90% , 4.92% , and 5.11% . |
Future Principal Payments for Debt | As of December 31, 2015 , future principal payments for our total debt were as follows (in millions): Year Ended December 31, 2016 $ 238 2017 1,037 2018 37 2019 1,000 2020 — Thereafter 6,250 $ 8,562 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Table Disclosure | Our other long-term liabilities are summarized as follows (in millions): December 31, 2015 2014 Long-term capital lease obligations $ 4,212 $ 3,026 Long-term finance lease obligations 1,736 1,198 Construction liabilities 378 467 Tax contingencies 932 510 Long-term deferred tax liabilities 1,084 1,021 Other 1,584 1,188 Total other long-term liabilities $ 9,926 $ 7,410 |
Schedule of Capital Lease Obligations | Long-term capital lease obligations are as follows (in millions): December 31, 2015 Gross capital lease obligations $ 7,452 Less imputed interest (213 ) Present value of net minimum lease payments 7,239 Less current portion of capital lease obligations (3,027 ) Total long-term capital lease obligations $ 4,212 |
Schedule of Finance Lease Obligations | Long-term finance lease obligations are as follows (in millions): December 31, 2015 Gross finance lease obligations $ 2,390 Less imputed interest (555 ) Present value of net minimum lease payments 1,835 Less current portion of finance lease obligations (99 ) Total long-term finance lease obligations $ 1,736 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 (in millions): Year Ended December 31, 2016 2017 2018 2019 2020 Thereafter Total Debt principal and interest $ 526 $ 1,322 $ 310 $ 1,272 $ 246 $ 9,157 $ 12,833 Capital lease obligations, including interest 3,128 2,521 1,277 304 139 83 7,452 Finance lease obligations, including interest 166 168 172 176 178 1,530 2,390 Operating leases 1,181 897 800 698 616 2,325 6,517 Unconditional purchase obligations (1) 614 547 399 166 43 13 1,782 Other commitments (2) (3) 851 273 188 132 86 1,112 2,642 Total commitments $ 6,466 $ 5,728 $ 3,146 $ 2,748 $ 1,308 $ 14,220 $ 33,616 ___________________ (1) Includes unconditional purchase obligations related to long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets. For those agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified. (2) Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that have not been placed in service and digital media content liabilities associated with long-term digital media content assets with initial terms greater than one year. (3) Excludes $1.2 billion 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, 2015 | |
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, 2013 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 Units granted 8.5 328 Units vested (5.1 ) 202 Units forfeited (2.3 ) 264 Outstanding as of December 31, 2014 17.4 285 Units granted 9.8 426 Units vested (5.6 ) 253 Units forfeited (2.7 ) 321 Outstanding as of December 31, 2015 18.9 $ 362 |
Nonvested Share Activity | Scheduled vesting for outstanding restricted stock units as of December 31, 2015 , is as follows (in millions): Year Ended December 31, 2016 2017 2018 2019 2020 Thereafter Total Scheduled vesting—restricted stock units 6.4 7.0 3.6 1.6 0.1 0.2 18.9 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Changes in Composition of Accumulated Other Comprehensive Income or Loss | Changes in the composition of accumulated other comprehensive loss for 2015 , 2014 , and 2013 are as follows (in millions): Foreign currency translation adjustments Unrealized gains on available-for-sale securities Total Balances as of January 1, 2013 $ (250 ) $ 11 $ (239 ) Other comprehensive income (loss) 63 (9 ) 54 Balances as of December 31, 2013 (187 ) 2 (185 ) Other comprehensive income (loss) (325 ) (1 ) (326 ) Balances as of December 31, 2014 (512 ) 1 (511 ) Other comprehensive income (loss) (210 ) (2 ) (212 ) Balances as of December 31, 2015 $ (722 ) $ (1 ) $ (723 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Current taxes: U.S. Federal $ 215 $ 214 $ 99 U.S. State 237 65 45 International 417 204 173 Current taxes 869 483 317 Deferred taxes: U.S. Federal 473 (125 ) (114 ) U.S. State (171 ) (11 ) (19 ) International (221 ) (180 ) (23 ) Deferred taxes 81 (316 ) (156 ) Provision for income taxes, net $ 950 $ 167 $ 161 |
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, 2015 2014 2013 U.S. $ 2,186 $ 292 $ 704 International (618 ) (403 ) (198 ) Income (loss) before income taxes $ 1,568 $ (111 ) $ 506 |
Effective Income Tax Rate Reconciliation | The items accounting for differences between income taxes computed at the federal statutory rate and the provision recorded for income taxes are as follows (in millions): Year Ended December 31, 2015 2014 2013 Income taxes computed at the federal statutory rate $ 549 $ (39 ) $ 177 Effect of: Impact of foreign tax differential 350 136 (41 ) State taxes, net of federal benefits 37 29 14 Tax credits (99 ) (85 ) (84 ) Nondeductible compensation 149 117 86 Domestic production activities deduction (44 ) (20 ) (11 ) Other, net 8 29 20 Total $ 950 $ 167 $ 161 |
Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities are as follows (in millions): December 31, 2015 2014 Deferred tax assets (1): Net operating losses U.S. - Federal/States (2) $ 107 $ 357 Net operating losses foreign (3) 856 669 Accrued liabilities, reserves, & other expenses 854 780 Stock-based compensation 727 534 Deferred revenue 189 156 Assets held for investment 148 154 Depreciation & amortization 222 117 Other items 268 125 Tax credits (4) 41 115 Total gross deferred tax assets 3,412 3,007 Less valuation allowance (5) (1,069 ) (901 ) Deferred tax assets, net of valuation allowance 2,343 2,106 Deferred tax liabilities: Depreciation & amortization (1,970 ) (1,609 ) Acquisition related intangible assets (203 ) (195 ) Other items (88 ) (31 ) Net deferred tax assets, net of valuation allowance $ 82 $ 271 ___________________ (1) Deferred tax assets related to net operating losses and tax credits are presented net of tax contingencies. (2) Excluding $380 million and $261 million of deferred tax assets as of December 31, 2015 and 2014 , 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 $2 million of deferred tax assets as of December 31, 2015 and 2014 , related to net operating losses that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. (4) Excluding $447 million and $268 million of deferred tax assets as of December 31, 2015 and 2014 , related to tax credits that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. (5) 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, 2015 2014 2013 Gross tax contingencies – January 1 $ 710 $ 407 $ 294 Gross increases to tax positions in prior periods 254 351 78 Gross decreases to tax positions in prior periods (22 ) (50 ) (18 ) Gross increases to current period tax positions 242 20 54 Audit settlements paid — (16 ) (1 ) Lapse of statute of limitations (3 ) (2 ) — Gross tax contingencies – December 31 (1) $ 1,181 $ 710 $ 407 ___________________ (1) As of December 31, 2015 , we had $1.2 billion of tax contingencies, of which $882 million , if fully recognized, would decrease our effective tax rate. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 North America Net sales $ 63,708 $ 50,834 $ 41,410 Segment operating expenses (1) 60,957 49,542 40,244 Segment operating income (loss) $ 2,751 $ 1,292 $ 1,166 International Net sales $ 35,418 $ 33,510 $ 29,934 Segment operating expenses (1) 35,509 33,654 29,780 Segment operating income (loss) $ (91 ) $ (144 ) $ 154 AWS Net sales $ 7,880 $ 4,644 $ 3,108 Segment operating expenses (1) 6,017 3,984 2,435 Segment operating income (loss) $ 1,863 $ 660 $ 673 Consolidated Net sales $ 107,006 $ 88,988 $ 74,452 Segment operating expenses (1) 102,483 87,180 72,459 Segment operating income (loss) 4,523 1,808 1,993 Stock-based compensation (2,119 ) (1,497 ) (1,134 ) Other operating income (expense), net (171 ) (133 ) (114 ) Income from operations 2,233 178 745 Total non-operating income (expense) (665 ) (289 ) (239 ) Provision for income taxes (950 ) (167 ) (161 ) Equity-method investment activity, net of tax (22 ) 37 (71 ) Net income (loss) $ 596 $ (241 ) $ 274 ___________________ (1) Excludes stock-based compensation and “Other operating expense (income), net,” which are not allocated to segments. |
Revenue from External Customers by Products and Services | Year Ended December 31, 2015 2014 2013 Net Sales: Media $ 22,509 $ 22,505 $ 21,716 Electronics and other general merchandise 75,597 60,886 48,802 AWS 7,880 4,644 3,108 Other (1) 1,020 953 826 $ 107,006 $ 88,988 $ 74,452 ___________________ (1) Includes sales from non-retail activities, such as certain advertising services, and our co-branded credit card agreements. |
Net Sales Attributed to Foreign Countries | Net sales attributed to countries that represent a significant portion of consolidated net sales are as follows (in millions): Year Ended December 31, 2015 2014 2013 United States $ 70,537 $ 54,717 $ 43,959 Germany 11,816 11,919 10,535 United Kingdom 9,033 8,341 7,291 Japan 8,264 7,912 7,639 Rest of world 7,356 6,099 5,028 Consolidated $ 107,006 $ 88,988 $ 74,452 |
Reconciliation of Assets from Segment to Consolidated | Total segment assets exclude corporate assets, such as cash and cash equivalents, marketable securities, other long-term investments, corporate facilities, goodwill and other acquired intangible assets, capitalized internal-use software and website development costs, and tax assets. Technology infrastructure assets are allocated among the segments based on usage, with the majority allocated to the AWS segment. Total segment assets reconciled to consolidated amounts are as follows (in millions): December 31, 2015 2014 2013 North America (1) $ 16,772 $ 13,257 $ 9,991 International (1) 7,754 6,747 6,199 AWS (2) 9,787 6,981 3,840 Corporate 31,131 27,520 20,129 Consolidated $ 65,444 $ 54,505 $ 40,159 ___________________ (1) North America and International segment assets primarily consist of inventory, accounts receivable, and property and equipment. (2) AWS segment assets primarily consist of property and equipment and accounts receivable. |
Reconciliation of Property and Equipment from Segments to Consolidated | Property and equipment, net by segment is as follows (in millions): December 31, 2015 2014 2013 North America $ 6,707 $ 5,373 $ 3,477 International 2,266 2,000 1,549 AWS 8,356 6,043 3,253 Corporate 4,509 3,551 2,670 Consolidated $ 21,838 $ 16,967 $ 10,949 |
Reconciliation of Property and Equipment Additions from Segments to Consolidated | Total property and equipment additions by segment are as follows (in millions): Year Ended December 31, 2015 2014 2013 North America (1) $ 2,485 $ 2,833 $ 2,326 International (1) 658 767 851 AWS (2) 4,681 4,295 2,215 Corporate 1,801 1,586 981 Consolidated $ 9,625 $ 9,481 $ 6,373 ___________________ (1) Includes property and equipment added under capital leases of $938 million , $887 million , and $555 million in 2015 , 2014 , and 2013 , and under other financing arrangements of $219 million , $599 million , and $715 million in 2015 , 2014 , and 2013 . (2) Includes property and equipment added under capital leases of $3.7 billion , $3.0 billion , and $1.3 billion in 2015 , 2014 , and 2013 and under finance leases of $81 million , $62 million , and $67 million in 2015 , 2014 , and 2013 . |
Depreciation Expense by Segment | Depreciation expense, including amortization of capitalized internal-use software and website development costs and other corporate property and equipment depreciation expense, are allocated to all segments based on usage. Total depreciation expense, by segment, is as follows (in millions): Year Ended December 31, 2015 2014 2013 North America $ 1,551 $ 1,203 $ 914 International 822 740 583 AWS 2,576 1,673 963 Consolidated $ 4,949 $ 3,616 $ 2,460 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Unaudited quarterly results are as follows (in millions, except per share data): Year Ended December 31, 2015 (1) Fourth Quarter Third Quarter Second Quarter First Quarter Net sales $ 35,747 $ 25,358 $ 23,185 $ 22,717 Income (loss) from operations 1,108 406 464 255 Income (loss) before income taxes 938 247 362 21 Provision for income taxes (453 ) (161 ) (266 ) (71 ) Net income (loss) 482 79 92 (57 ) Basic earnings per share 1.03 0.17 0.20 (0.12 ) Diluted earnings per share 1.00 0.17 0.19 (0.12 ) Shares used in computation of earnings per share: Basic 470 468 467 465 Diluted 481 478 476 465 Year Ended December 31, 2014 (1) Fourth Quarter Third Quarter Second Quarter First Quarter Net sales $ 29,328 $ 20,579 $ 19,340 $ 19,741 Income (loss) from operations 591 (544 ) (15 ) 146 Income (loss) before income taxes 429 (634 ) (27 ) 120 Benefit (provision) for income taxes (205 ) 205 (94 ) (73 ) Net income (loss) 214 (437 ) (126 ) 108 Basic earnings per share 0.46 (0.95 ) (0.27 ) 0.23 Diluted earnings per share 0.45 (0.95 ) (0.27 ) 0.23 Shares used in computation of earnings per share: Basic 464 463 461 460 Diluted 472 463 461 468 ___________________ (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 A35
Description of Business and Accounting Policies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of principal segments | Segment | 3 | ||
Allowance for returns | $ 153 | $ 147 | $ 167 |
Additions to allowance for returns | 1,300 | 1,100 | 907 |
Deductions to allowance for returns | 1,300 | 1,100 | 938 |
Advertising and other promotional costs | 3,800 | 3,300 | 2,400 |
Foreign currency transaction gain (loss) | (266) | (127) | (137) |
Marketable securities realized gain (loss) | (5) | 3 | (1) |
Undistributed earnings of foreign subsidiaries that are indefinitely invested outside of the U.S | 1,500 | ||
Accounts receivable, net and other | 6,423 | 5,612 | |
Allowance for doubtful accounts | 189 | 190 | 153 |
Additions to allowance for doubtful accounts | 289 | 225 | 172 |
Deductions to allowance for doubtful accounts | 290 | 188 | 135 |
Capitalized costs associated with internal-use software and website development | 642 | 641 | 581 |
Capitalized costs associated with internal-use software and website development, share-based compensation | 114 | 104 | 87 |
Capitalized costs associated with internal-use software and website development, amortization of previously capitalized amounts | $ 635 | 559 | 451 |
Estimated useful lives of assets description | Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets | ||
Disclosure of Change of Date for Annual Goodwill Impairment Test | we changed the measurement date of our annual goodwill impairment test from October 1 to April 1 | ||
Reason for Change in Date of Annual Goodwill Impairment Test | We believe this timing better aligns the goodwill impairment test with our strategic business planning process, which is a key component of the goodwill impairment test. | ||
Unredeemed gift certificates | $ 2,000 | 1,700 | |
Unredeemed gift certificates, period of recognition | 2 years | ||
Transaction losses arising from foreign currency transactions | $ 215 | 98 | $ 84 |
Current deferred tax assets | 769 | ||
Current deferred tax liabilities | 13 | ||
Vendor receivables | |||
Significant Accounting Policies [Line Items] | |||
Accounts receivable, net and other | 1,800 | 1,400 | |
Customer and seller receivables | |||
Significant Accounting Policies [Line Items] | |||
Accounts receivable, net and other | $ 2,600 | $ 1,900 | |
Internal-use software and website development | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives of assets | 2 years | ||
Building | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives of assets | 40 years | ||
Servers | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives of assets | 3 years | ||
Networking 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 | ||
Video and Music Content | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Video and music content licensing agreements term | 1 year | ||
Video and music content amortization period | 6 months | ||
Video and Music Content | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Video and music content licensing agreements term | 5 years | ||
Video and music content amortization period | 5 years |
Description of Business and A36
Description of Business and Accounting Policies Calculation of Diluted Shares (Detail) - shares shares in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||||||||||||||||||
Shares used in computation of basic earnings per share | 470 | 468 | 467 | 465 | 464 | 463 | 461 | 460 | 467 | 462 | 457 | ||||||||
Total dilutive effect of outstanding stock awards | 10 | 0 | 8 | ||||||||||||||||
Shares used in computation of diluted earnings per share | 481 | 478 | 476 | 465 | 472 | 463 | 461 | 468 | 477 | 462 | 465 | ||||||||
[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 A37
Description of Business and Accounting Policies Calculation of Diluted Shares Additional Information (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2014shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Stock awards excluded from the computation of earnings per share as their inclusion would have an antidilutive effect, Amount | 17 |
Cash, Cash Equivalents, and M38
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 ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash, cash equivalents and marketable securities [Line Items] | |||
Less: Restricted cash, cash equivalents, and marketable securities | [1] | $ (285) | $ (450) |
Cash, Cash Equivalents, and Short-term Investments | 19,808 | 17,416 | |
Cash | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 6,201 | 4,155 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Cash, Cash Equivalents, and Short-term Investments | 6,201 | 4,155 | |
Cash, cash equivalents, and marketable securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 20,089 | 17,865 | |
Gross Unrealized Gains | 12 | 4 | |
Gross Unrealized Losses | (8) | (3) | |
Cash, Cash Equivalents, and Short-term Investments | 20,093 | 17,866 | |
Level 1 Securities | Money market funds | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 8,025 | 10,718 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Cash, Cash Equivalents, and Short-term Investments | 8,025 | 10,718 | |
Level 1 Securities | Equity securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 4 | 2 | |
Gross Unrealized Gains | 11 | 2 | |
Gross Unrealized Losses | 0 | 0 | |
Cash, Cash Equivalents, and Short-term Investments | 15 | 4 | |
Level 2 Securities | Foreign government and agency securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 49 | 80 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Cash, Cash Equivalents, and Short-term Investments | 49 | 80 | |
Level 2 Securities | U.S. government and agency securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 5,171 | 2,407 | |
Gross Unrealized Gains | 1 | 1 | |
Gross Unrealized Losses | (5) | (2) | |
Cash, Cash Equivalents, and Short-term Investments | 5,167 | 2,406 | |
Level 2 Securities | Corporate debt securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 479 | 401 | |
Gross Unrealized Gains | 0 | 1 | |
Gross Unrealized Losses | (2) | (1) | |
Cash, Cash Equivalents, and Short-term Investments | 477 | 401 | |
Level 2 Securities | Asset-backed securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 118 | 69 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (1) | 0 | |
Cash, Cash Equivalents, and Short-term Investments | 117 | 69 | |
Level 2 Securities | Other fixed income securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Cost or Amortized Cost | 42 | 33 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Cash, Cash Equivalents, and Short-term Investments | $ 42 | $ 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, real estate leases, and amounts due to third-party sellers in certain jurisdictions. We classify cash, cash equivalents, and marketable securities with use restrictions of less than twelve months as “Accounts receivable, net and other” and of twelve months or longer as non-current “Other assets” on our consolidated balance sheets. See “Note 7—Commitments and Contingencies.” |
Cash, Cash Equivalents, and M39
Cash, Cash Equivalents, and Marketable Securities - Gross Grains and Gross Losses Realized on Sales of Available-For-Sale Marketable Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | |||
Realized gains | $ 2 | $ 8 | $ 6 |
Realized losses | $ 7 | $ 5 | $ 7 |
Cash, Cash Equivalents, and M40
Cash, Cash Equivalents, and Marketable Securities - Summary of Contractual Maturities of Cash Equivalent and Marketable Fixed Income Securities (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Investments Classified by Contractual Maturity Date [Line Items] | |
Amortized Cost | $ 13,884 |
Estimated Fair Value | 13,877 |
Due within one year | |
Investments Classified by Contractual Maturity Date [Line Items] | |
Amortized Cost | 12,533 |
Estimated Fair Value | 12,531 |
Due after one year through five years | |
Investments Classified by Contractual Maturity Date [Line Items] | |
Amortized Cost | 1,086 |
Estimated Fair Value | 1,084 |
Due after five years through ten years | |
Investments Classified by Contractual Maturity Date [Line Items] | |
Amortized Cost | 96 |
Estimated Fair Value | 95 |
Due after ten years | |
Investments Classified by Contractual Maturity Date [Line Items] | |
Amortized Cost | 169 |
Estimated Fair Value | $ 167 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Property and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | [1] | $ 30,053 | $ 22,730 | |
Internal-use software | 1,400 | 1,300 | ||
Depreciation expense | 4,949 | 3,616 | $ 2,460 | |
Amortization of property and equipment acquired under capital leases | 2,700 | 1,500 | 826 | |
Capital Leased Assets, Gross | 12,000 | 7,900 | ||
Accumulated depreciation associated with capital leases | 5,400 | 3,300 | ||
Finance Leased Assets, Gross | 2,000 | 1,400 | ||
Accumulated depreciation associated with finance leases | 199 | 87 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | [1] | 8,215 | 5,763 | |
Property and equipment, net | 21,838 | 16,967 | $ 10,949 | |
Land and Buildings | ||||
Property and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | [1] | 9,770 | 7,150 | |
Equipment and Internal-use Software | ||||
Property and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | [1],[2] | 18,417 | 14,213 | |
Other Corporate Assets | ||||
Property and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | [1] | 334 | 304 | |
Construction in Progress | ||||
Property and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | [1] | $ 1,532 | $ 1,063 | |
[1] | Excludes the original cost and accumulated depreciation of fully-depreciated assets. | |||
[2] | Includes internal-use software of $1.4 billion and $1.3 billion as of December 31, 2015 and 2014. |
Acquisitions Goodwill and Acqui
Acquisitions Goodwill and Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Business Acquisition [Line Items] | ||||
Acquired intangibles weighted average amortization period | [1] | 3 years 11 months | ||
Net sales of acquired companies included in our consolidated financial statements since acquisition dates | $ 23 | |||
Operating income (loss) of acquired companies included in our consolidated financial statements since acquisition dates | (112) | |||
Acquired goodwill | 3,759 | $ 3,319 | $ 2,655 | |
Amortization expense for acquired intangibles | 228 | 181 | 168 | |
Twitch Interactive, Inc. | ||||
Business Acquisition [Line Items] | ||||
Aggregate purchase price | $ 842 | |||
Business Acquisition, Effective Date of Acquisition | Sep. 25, 2014 | |||
2014 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Aggregate purchase price | $ 20 | |||
Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Aggregate purchase price | $ 690 | $ 862 | 195 | |
Acquired intangibles weighted average amortization period | 5 years | 5 years | ||
Fair value of assumed stock options | $ 39 | |||
Fair value of assumed stock options and restricted stock options | $ 9 | |||
Acquired goodwill | $ 482 | $ 707 | $ 103 | |
Marketing-related | ||||
Business Acquisition [Line Items] | ||||
Acquired intangibles weighted average amortization period | 4 years 5 months | |||
Contract-based | ||||
Business Acquisition [Line Items] | ||||
Acquired intangibles weighted average amortization period | 2 years 1 month | |||
Technology-based | ||||
Business Acquisition [Line Items] | ||||
Acquired intangibles weighted average amortization period | 3 years 11 months | |||
Customer-related | ||||
Business Acquisition [Line Items] | ||||
Acquired intangibles weighted average amortization period | 3 years 7 months | |||
Minimum | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 1 year | |||
Minimum | Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 1 year | 1 year | ||
Maximum | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Maximum | Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 6 years | 5 years | ||
[1] | Intangible assets have estimated useful lives of between one and ten years. |
Acquisitions, Goodwill, and A43
Acquisitions, Goodwill, and Acquired Intangible Assets Allocation of Aggregate Purchase Price of Acquisitions (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Allocation | ||||||
Goodwill | $ 3,759 | $ 3,319 | $ 2,655 | |||
Acquired intangibles weighted average amortization period | [1] | 3 years 11 months | ||||
Minimum | ||||||
Allocation | ||||||
Intangible assets, estimated useful life | 1 year | |||||
Maximum | ||||||
Allocation | ||||||
Intangible assets, estimated useful life | 10 years | |||||
Marketing-related | ||||||
Allocation | ||||||
Acquired intangibles weighted average amortization period | 4 years 5 months | |||||
Contract-based | ||||||
Allocation | ||||||
Acquired intangibles weighted average amortization period | 2 years 1 month | |||||
Technology-based | ||||||
Allocation | ||||||
Acquired intangibles weighted average amortization period | 3 years 11 months | |||||
Customer-related | ||||||
Allocation | ||||||
Acquired intangibles weighted average amortization period | 3 years 7 months | |||||
2014 Acquisitions | ||||||
Purchase Price | ||||||
Aggregate purchase price | 20 | |||||
Series of Individually Immaterial Business Acquisitions | ||||||
Purchase Price | ||||||
Cash paid, net of cash acquired | $ 599 | 813 | ||||
Stock options and restricted stock assumed | 5 | 44 | ||||
Indemnification holdback | 86 | 5 | ||||
Aggregate purchase price | 690 | 862 | 195 | |||
Allocation | ||||||
Goodwill | 482 | 707 | 103 | |||
Intangible assets | 230 | [2] | 230 | [3] | $ 83 | |
Property and equipment | 4 | 16 | ||||
Deferred tax assets | 55 | 64 | ||||
Other assets acquired | 53 | 34 | ||||
Deferred tax liabilities | 85 | 88 | ||||
Other liabilities assumed | 49 | 101 | ||||
Business acquisition, allocation | $ 690 | $ 862 | ||||
Acquired intangibles weighted average amortization period | 5 years | 5 years | ||||
Series of Individually Immaterial Business Acquisitions | Minimum | ||||||
Allocation | ||||||
Intangible assets, estimated useful life | 1 year | 1 year | ||||
Series of Individually Immaterial Business Acquisitions | Maximum | ||||||
Allocation | ||||||
Intangible assets, estimated useful life | 6 years | 5 years | ||||
Series of Individually Immaterial Business Acquisitions | Marketing-related | ||||||
Allocation | ||||||
Intangible assets | $ 3 | [2] | $ 23 | [3] | ||
Series of Individually Immaterial Business Acquisitions | Contract-based | ||||||
Allocation | ||||||
Intangible assets | 1 | [2] | 1 | [3] | ||
Series of Individually Immaterial Business Acquisitions | Technology-based | ||||||
Allocation | ||||||
Intangible assets | 208 | [2] | 33 | [3] | ||
Series of Individually Immaterial Business Acquisitions | Customer-related | ||||||
Allocation | ||||||
Intangible assets | $ 18 | [2] | $ 173 | [3] | ||
[1] | Intangible assets have estimated useful lives of between one and ten years. | |||||
[2] | Acquired intangible assets have estimated useful lives of between one and six years, with a weighted-average amortization period of five years. | |||||
[3] | Acquired intangible assets have estimated useful lives of between one and five years, with a weighted-average amortization period of five years. |
Acquisitions, Goodwill, and A44
Acquisitions, Goodwill, and Acquired Intangible Assets Business Acquisitions Pro Forma Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pro Forma Financial Information [Abstract] | ||
Net sales | $ 107,054 | $ 89,039 |
Net income (loss) | $ 576 | $ (311) |
Acquisitions, Goodwill, and A45
Acquisitions, Goodwill, and Acquired Intangible Assets Summary of Goodwill Activity by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Jan. 01, 2015 | |||
Goodwill [Line Items] | |||||
Goodwill - Beginning Balance | $ 3,319 | $ 2,655 | |||
New acquisitions | 482 | 715 | [1] | ||
Other adjustments | 42 | 51 | [2] | ||
Segment Reallocation | [3] | $ 0 | |||
Goodwill - Ending Balance | 3,759 | 3,319 | |||
Amazon Web Services | |||||
Goodwill [Line Items] | |||||
Goodwill - Beginning Balance | 0 | 0 | |||
New acquisitions | 423 | 0 | [1] | ||
Other adjustments | [2] | (1) | 0 | ||
Segment Reallocation | [3] | 606 | |||
Goodwill - Ending Balance | 1,028 | 0 | |||
North America Segment | |||||
Goodwill [Line Items] | |||||
Goodwill - Beginning Balance | 2,584 | 2,033 | |||
New acquisitions | 41 | 553 | [1] | ||
Other adjustments | [2] | (7) | (2) | ||
Segment Reallocation | [3] | (606) | |||
Goodwill - Ending Balance | 2,012 | 2,584 | |||
International Segment | |||||
Goodwill [Line Items] | |||||
Goodwill - Beginning Balance | 735 | 622 | |||
New acquisitions | 18 | 162 | [1] | ||
Other adjustments | [2] | (34) | (49) | ||
Segment Reallocation | [3] | $ 0 | |||
Goodwill - Ending Balance | $ 719 | $ 735 | |||
[1] | Primarily includes the goodwill of Twitch. | ||||
[2] | Primarily includes changes in foreign exchange rates. | ||||
[3] | In conjunction with the change in reportable segments, we reallocated goodwill on a relative fair value basis. |
Acquisitions, Goodwill, and A46
Acquisitions, Goodwill, and Acquired Intangible Assets Acquired Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangibles weighted average life remaining | [1] | 3 years 11 months | |
Acquired Intangibles, Gross | [1],[2] | $ 1,477 | $ 1,534 |
Accumulated Amortization | [1],[2] | (715) | (770) |
Acquired Intangibles, Net | [1] | $ 762 | 764 |
Marketing-related | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangibles weighted average life remaining | 4 years 5 months | ||
Acquired Intangibles, Gross | [2] | $ 457 | 457 |
Accumulated Amortization | [2] | (250) | (199) |
Acquired Intangibles, Net | $ 207 | 258 | |
Contract-based | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangibles weighted average life remaining | 2 years 1 month | ||
Acquired Intangibles, Gross | [2] | $ 130 | 172 |
Accumulated Amortization | [2] | (99) | (125) |
Acquired Intangibles, Net | $ 31 | 47 | |
Technology-based | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangibles weighted average life remaining | 3 years 11 months | ||
Acquired Intangibles, Gross | [2] | $ 559 | 370 |
Accumulated Amortization | [2] | (205) | (129) |
Acquired Intangibles, Net | $ 354 | 241 | |
Customer-related | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangibles weighted average life remaining | 3 years 7 months | ||
Acquired Intangibles, Gross | [2] | $ 331 | 535 |
Accumulated Amortization | [2] | (161) | (317) |
Acquired Intangibles, Net | $ 170 | $ 218 | |
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 | ||
[1] | Intangible assets have estimated useful lives of between one and ten years. | ||
[2] | Excludes the original cost and accumulated amortization of fully-amortized intangibles. |
Acquisitions, Goodwill, and A47
Acquisitions, Goodwill, and Acquired Intangible Assets Expected Future Amortization Expense of Acquired Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combinations [Abstract] | |||
2,016 | $ 218 | ||
2,017 | 191 | ||
2,018 | 131 | ||
2,019 | 103 | ||
2,020 | 41 | ||
Thereafter | 78 | ||
Acquired Intangibles, Net | [1] | $ 762 | $ 764 |
[1] | Intangible assets have estimated useful lives of between one and ten years. |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 30, 2012 | |
Debt Instrument [Line Items] | ||||
Unamortized discount on senior notes | $ 89,000,000 | $ 96,000,000 | ||
Other long-term debt carrying amount including current portion | 312,000,000 | 881,000,000 | ||
Total estimated fair value of senior notes | $ 8,500,000,000 | $ 9,100,000,000 | ||
Other debt, weighted average interest rate | 3.70% | 5.50% | ||
Credit Agreement, initiation date | Sep. 5, 2014 | |||
Credit Agreement, maximum borrowing capacity | $ 2,000,000,000 | |||
Credit Agreement, term | 2 years | |||
Credit Agreement, term additional information | may be extended for up to three additional one-year terms if approved by the lenders | |||
Credit Agreement, variable rate basis | LIBOR | |||
Credit Agreement, basis spread on variable rate | 0.625% | |||
Credit Agreement, borrowings outstanding | $ 0 | $ 0 | ||
Notes issued in 2014 | ||||
Debt Instrument [Line Items] | ||||
Issued notes | $ 6,000,000,000 | |||
Interest payment frequency | semi-annually in arrears in June and December | |||
Notes issued in 2012 | ||||
Debt Instrument [Line Items] | ||||
Issued notes | $ 3,000,000,000 | |||
Interest payment frequency | semi-annually in arrears in May and November | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Credit Agreement, basis spread on variable rate | 1.00% |
Long-Term Debt Long-Term Debt O
Long-Term Debt Long-Term Debt Obligations (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | ||||
Other long-term debt | $ 312 | $ 881 | ||
Total debt | 8,562 | 9,881 | ||
Less current portion of long-term debt | (238) | (1,520) | ||
Face value of long-term debt | $ 8,324 | 8,361 | ||
0.65% Notes due on November 27, 2015 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 0.65% | |||
Total debt | $ 0 | 750 | [1] | |
1.20% Notes due on November 29, 2017 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 1.20% | |||
Total debt | [1] | $ 1,000 | 1,000 | |
Effective interest rate | 1.38% | |||
2.50% Notes due on November 29, 2022 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.50% | |||
Total debt | [1] | $ 1,250 | 1,250 | |
Effective interest rate | 2.66% | |||
2.60% Notes due on December 5, 2019 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.60% | |||
Total debt | [2] | $ 1,000 | 1,000 | |
Effective interest rate | 2.73% | |||
3.30% Notes due on December 5, 2021 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.30% | |||
Total debt | [2] | $ 1,000 | 1,000 | |
Effective interest rate | 3.43% | |||
3.80% Notes due on December 5, 2024 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.80% | |||
Total debt | [2] | $ 1,250 | 1,250 | |
Effective interest rate | 3.90% | |||
4.80% Notes due on December 5, 2034 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.80% | |||
Total debt | [2] | $ 1,250 | 1,250 | |
Effective interest rate | 4.92% | |||
4.95% Notes due on December 5, 2044 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.95% | |||
Total debt | [2] | $ 1,500 | $ 1,500 | |
Effective interest rate | 5.11% | |||
[1] | Issued in November 2012, effective interest rates of the 2017 and 2022 Notes were 1.38% and 2.66% | |||
[2] | Issued in December 2014, effective interest rates of the 2019, 2021, 2024, 2034, and 2044 Notes were 2.73%, 3.43%, 3.90%, 4.92%, and 5.11%. |
Long-Term Debt Future Principal
Long-Term Debt Future Principal Payment for Debt (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
2,016 | $ 238 | |
2,017 | 1,037 | |
2,018 | 37 | |
2,019 | 1,000 | |
2,020 | 0 | |
Thereafter | 6,250 | |
Total debt | $ 8,562 | $ 9,881 |
Other Long Term Liabilities Sum
Other Long Term Liabilities Summary (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities [Line Items] | ||
Long-term capital lease obligations | $ 4,212 | $ 3,026 |
Long-term finance lease obligations | 1,736 | 1,198 |
Construction liabilities | 378 | 467 |
Tax contingencies | 932 | 510 |
Long-term deferred tax liabilities | 1,084 | 1,021 |
Other | 1,584 | 1,188 |
Total other long-term liabilities | $ 9,926 | $ 7,410 |
Other Long-Term Liabilities Lon
Other Long-Term Liabilities Long Term Capital Lease Obligation (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Gross capital lease obligations | $ 7,452 | |
Less imputed interest | (213) | |
Present value of net minimum lease payments | 7,239 | |
Less current portion of capital lease obligations | (3,027) | |
Total long-term capital lease obligations | $ 4,212 | $ 3,026 |
Other Long-Term Liabilities L53
Other Long-Term Liabilities Long Term Finance Lease Obligation (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Gross finance lease obligations | $ 2,390 | |
Less imputed interest | (555) | |
Present value of net minimum lease payments | 1,835 | |
Less current portion of finance lease obligations | (99) | |
Total long-term finance lease obligations | $ 1,736 | $ 1,198 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2013Patent | Dec. 31, 2015USD ($)Patent | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Loss Contingencies [Line Items] | |||||
Rental expense under operating lease agreements | $ | $ 1,100 | $ 961 | $ 759 | ||
Pledged or otherwise restricted cash, marketable securities, and certain fixed assets as collateral | $ | $ 418 | $ 418 | $ 602 | ||
Personalized Media Communications, LLC | |||||
Loss Contingencies [Line Items] | |||||
Number of patents allegedly infringed | 9 | ||||
Personalized Media Communications LLC AWS | |||||
Loss Contingencies [Line Items] | |||||
Number of patents allegedly infringed | 3 | ||||
Smartflash LLC and Smartflash Technologies Limited | |||||
Loss Contingencies [Line Items] | |||||
Number of patents allegedly infringed | 7 |
Commitments and Contingencies C
Commitments and Contingencies Contractual Commitments, Excluding Open Orders for Purchases that Support Normal Operations (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Total commitments | ||||||
Year Ended December 31, 2016 | $ 6,466 | |||||
Year Ended December 31, 2017 | 5,728 | |||||
Year Ended December 31, 2018 | 3,146 | |||||
Year Ended December 31, 2019 | 2,748 | |||||
Year Ended December 31, 2020 | 1,308 | |||||
Thereafter | 14,220 | |||||
Total | 33,616 | |||||
Capital leases, including interest | ||||||
Year Ended December 31, 2016 | 3,128 | |||||
Year Ended December 31, 2017 | 2,521 | |||||
Year Ended December 31, 2018 | 1,277 | |||||
Year Ended December 31, 2019 | 304 | |||||
Year Ended December 31, 2020 | 139 | |||||
Thereafter | 83 | |||||
Total | 7,452 | |||||
Operating leases | ||||||
Year Ended December 31, 2016 | 1,181 | |||||
Year Ended December 31, 2017 | 897 | |||||
Year Ended December 31, 2018 | 800 | |||||
Year Ended December 31, 2019 | 698 | |||||
Year Ended December 31, 2020 | 616 | |||||
Thereafter | 2,325 | |||||
Total | 6,517 | |||||
Unconditional purchase obligations | ||||||
Year Ended December 31, 2016 | [1] | 614 | ||||
Year Ended December 31, 2017 | [1] | 547 | ||||
Year Ended December 31, 2018 | [1] | 399 | ||||
Year Ended December 31, 2019 | [1] | 166 | ||||
Year Ended December 31, 2020 | [1] | 43 | ||||
Thereafter | [1] | 13 | ||||
Total | [1] | 1,782 | ||||
Other commitments | ||||||
Year Ended December 31, 2016 | [2],[3] | 851 | ||||
Year Ended December 31, 2017 | [2],[3] | 273 | ||||
Year Ended December 31, 2018 | [2],[3] | 188 | ||||
Year Ended December 31, 2019 | [2],[3] | 132 | ||||
Year Ended December 31, 2020 | [2],[3] | 86 | ||||
Thereafter | [2],[3] | 1,112 | ||||
Total | [2],[3] | 2,642 | ||||
Excluded tax contingencies | 1,181 | [4] | $ 710 | $ 407 | $ 294 | |
Debt principal and interest | ||||||
Total commitments | ||||||
Year Ended December 31, 2016 | 526 | |||||
Year Ended December 31, 2017 | 1,322 | |||||
Year Ended December 31, 2018 | 310 | |||||
Year Ended December 31, 2019 | 1,272 | |||||
Year Ended December 31, 2020 | 246 | |||||
Thereafter | 9,157 | |||||
Total | 12,833 | |||||
Finance lease obligations, including interest | ||||||
Total commitments | ||||||
Year Ended December 31, 2016 | 166 | |||||
Year Ended December 31, 2017 | 168 | |||||
Year Ended December 31, 2018 | 172 | |||||
Year Ended December 31, 2019 | 176 | |||||
Year Ended December 31, 2020 | 178 | |||||
Thereafter | 1,530 | |||||
Total | $ 2,390 | |||||
[1] | Includes unconditional purchase obligations related to long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets. For those agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified. | |||||
[2] | Excludes $1.2 billion of tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any. | |||||
[3] | Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that have not been placed in service and digital media content liabilities associated with long-term digital media content assets with initial terms greater than one year. | |||||
[4] | Deferred tax assets related to net operating losses and tax credits are presented net of tax contingencies. |
Stockholders Equity - Additiona
Stockholders Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 490,000,000 | 483,000,000 | 476,000,000 |
2010 repurchase program authorized by Board of Directors | $ 2,000 | ||
2010 repurchase program authorized, remaining | $ 763 | ||
Stock options outstanding | 200,000 | 400,000 | 200,000 |
Net unrecognized compensation cost related to unvested stock-based compensation arrangements | $ 3,100 | ||
Net unrecognized compensation cost related to unvested stock-based compensation arrangements, weighted average recognition period (in years) | 1 year 1 month | ||
Fair value of vested restricted stock units | $ 2,700 | $ 1,700 | $ 1,400 |
Shares of common stock granted under the 401(k) savings plan | 200,000 | 200,000 | |
Common stock available for future issuance to employees | 130,000,000 | ||
Minimum | |||
Stockholders Equity Note [Line Items] | |||
Restricted stock unit awards and stock options, vesting period | 2 years | ||
Maximum | |||
Stockholders Equity Note [Line Items] | |||
Restricted stock unit awards and stock options, vesting period | 5 years |
Stockholders' Equity Restricted
Stockholders' Equity Restricted Stock Unit Activity (Detail) - Restricted Stock Units - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of units | |||
Beginning balance (in shares) | 17.4 | 16.3 | 15.4 |
Units granted (in shares) | 9.8 | 8.5 | 7.2 |
Units vested (in shares) | (5.6) | (5.1) | (4.5) |
Units forfeited (in shares) | (2.7) | (2.3) | (1.8) |
Ending balance (in shares) | 18.9 | 17.4 | 16.3 |
Weighted Average Grant-Date Fair Value | |||
Beginning balance (in usd per share) | $ 285 | $ 233 | $ 184 |
Units granted (in usd per share) | 426 | 328 | 283 |
Units vested (in usd per share) | 253 | 202 | 160 |
Units forfeited (in usd per share) | 321 | 264 | 209 |
Ending balance (in usd per share) | $ 362 | $ 285 | $ 233 |
Stockholders' Equity Scheduled
Stockholders' Equity Scheduled Vesting for Outstanding Restricted Stock Units (Detail) - Restricted Stock Units shares in Millions | Dec. 31, 2015shares |
Schedule of Vesting [Line Items] | |
2,016 | 6.4 |
2,017 | 7 |
2,018 | 3.6 |
2,019 | 1.6 |
2,020 | 0.1 |
Thereafter | 0.2 |
Total | 18.9 |
Accumulated Other Comprehensi59
Accumulated Other Comprehensive Loss Changes in Composition of Accumulated Other Comprehensive Income or Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | |||
Balance as of beginning of period | $ (511) | $ (185) | $ (239) |
Foreign currency translation adjustments | (210) | (325) | 63 |
Net unrealized gains (losses) on available-for-sale securities | (2) | (1) | (9) |
Total other comprehensive income (loss) | (212) | (326) | 54 |
Balance as of end of period | (723) | (511) | (185) |
Foreign currency translation adjustments | |||
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | |||
Balance as of beginning of period | (512) | (187) | (250) |
Foreign currency translation adjustments | (210) | (325) | 63 |
Balance as of end of period | (722) | (512) | (187) |
Unrealized gains on available-for-sale securities | |||
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | |||
Balance as of beginning of period | 1 | 2 | 11 |
Net unrealized gains (losses) on available-for-sale securities | (2) | (1) | (9) |
Balance as of end of period | $ (1) | $ 1 | $ 2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | [1] | Jun. 30, 2015USD ($) | [1] | Mar. 31, 2015USD ($) | [1] | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | [1] | Jun. 30, 2014USD ($) | [1] | Mar. 31, 2014USD ($) | [1] | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |||
Income Taxes [Line Items] | ||||||||||||||||||||
Provision for income taxes, net | $ 453 | [1] | $ 161 | $ 266 | $ 71 | $ 205 | [1] | $ (205) | $ 94 | $ 73 | $ 950 | $ 167 | $ 161 | |||||||
Cash taxes paid, net of refunds | 273 | 177 | 169 | |||||||||||||||||
Undistributed earnings of foreign subsidiaries that are indefinitely invested outside of the U.S | 1,500 | 1,500 | ||||||||||||||||||
Tax credit carryforwards for income tax purposes | 725 | $ 725 | ||||||||||||||||||
Tax credit carryforwards for income tax purposes, beginning expiration year | Dec. 31, 2017 | Dec. 31, 2017 | ||||||||||||||||||
Accrrued interest and penalties, net of federal income tax benefit, related to tax contingencies | 59 | $ 41 | $ 59 | 41 | ||||||||||||||||
Interest and penalties, net of federal income tax benefit | 18 | $ 8 | $ 8 | |||||||||||||||||
Internal Revenue Service (IRS) | ||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||
Net operating loss carryforwards | 1,100 | $ 1,100 | ||||||||||||||||||
Operating loss carryforwards, beginning expiration year | Dec. 31, 2020 | Dec. 31, 2020 | ||||||||||||||||||
Description of the status of the tax examination | We are under examination, or may be subject to examination, by the Internal Revenue Service (“IRS”) for the calendar year 2005 and thereafter. | We are under examination, or may be subject to examination, by the Internal Revenue Service (“IRS”) for the calendar year 2005 and thereafter. | ||||||||||||||||||
Tax examination, estimate of additional tax expense | $ 1,500 | |||||||||||||||||||
Foreign Country | ||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||
Net operating loss carryforwards | 3,400 | $ 3,400 | ||||||||||||||||||
Operating loss carryforwards, beginning expiration year | Dec. 31, 2016 | Dec. 31, 2016 | ||||||||||||||||||
Description of the status of the tax examination | We are also subject to taxation in various states and other foreign jurisdictions including Canada, China, Germany, India, Japan, Luxembourg, and the United Kingdom. | We are also subject to taxation in various states and other foreign jurisdictions including Canada, China, Germany, India, Japan, Luxembourg, and the United Kingdom. | ||||||||||||||||||
Income tax examination, beginning examination year | 2,003 | 2,003 | ||||||||||||||||||
State | ||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||
Net operating loss carryforwards | $ 2,000 | $ 2,000 | ||||||||||||||||||
Operating loss carryforwards, beginning expiration year | Dec. 31, 2016 | Dec. 31, 2016 | ||||||||||||||||||
France | ||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||
Description of the status of the tax examination | 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 and thereafter. | 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 and thereafter. | ||||||||||||||||||
Tax examination, estimate of additional tax expense | € | € 196 | |||||||||||||||||||
European Union | ||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||
Description of the status of the tax examination | In addition, in October 2014, the European Commission opened a formal investigation to examine whether decisions by the tax authorities in Luxembourg with regard to the corporate income tax paid by certain of our subsidiaries comply with European Union rules on state aid. | In addition, in October 2014, the European Commission opened a formal investigation to examine whether decisions by the tax authorities in Luxembourg with regard to the corporate income tax paid by certain of our subsidiaries comply with European Union rules on state aid. | ||||||||||||||||||
[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 Components of Prov
Income Taxes Components of Provision for Income Taxes, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current taxes: | |||||||||||||||||||
U.S. Federal | $ 215 | $ 214 | $ 99 | ||||||||||||||||
U.S. State | 237 | 65 | 45 | ||||||||||||||||
International | 417 | 204 | 173 | ||||||||||||||||
Current taxes | 869 | 483 | 317 | ||||||||||||||||
Deferred taxes: | |||||||||||||||||||
U.S. Federal | 473 | (125) | (114) | ||||||||||||||||
U.S. State | (171) | (11) | (19) | ||||||||||||||||
International | (221) | (180) | (23) | ||||||||||||||||
Deferred taxes | 81 | (316) | (156) | ||||||||||||||||
Provision for income taxes, net | $ 453 | $ 161 | $ 266 | $ 71 | $ 205 | $ (205) | $ 94 | $ 73 | $ 950 | $ 167 | $ 161 | ||||||||
[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 U.S. and Internati
Income Taxes U.S. and International Components of Income before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||||||||||
U.S. | $ 2,186 | $ 292 | $ 704 | ||||||||||||||||
International | (618) | (403) | (198) | ||||||||||||||||
Income (loss) before income taxes | $ 938 | $ 247 | $ 362 | $ 21 | $ 429 | $ (634) | $ (27) | $ 120 | $ 1,568 | $ (111) | $ 506 | ||||||||
[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 f
Income Taxes Items Accounting for Differences between Income Taxes Computed at Federal Statutory Rate and Provision Recorded for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||||||||||
Income taxes computed at the federal statutory rate | $ 549 | $ (39) | $ 177 | ||||||||||||||||
Effect of: | |||||||||||||||||||
Impact of foreign tax differential | 350 | 136 | (41) | ||||||||||||||||
State taxes, net of federal benefits | 37 | 29 | 14 | ||||||||||||||||
Tax credits | (99) | (85) | (84) | ||||||||||||||||
Nondeductible compensation | 149 | 117 | 86 | ||||||||||||||||
Domestic production activities deduction | 44 | 20 | 11 | ||||||||||||||||
Other, net | 8 | 29 | 20 | ||||||||||||||||
Provision for income taxes, net | $ 453 | $ 161 | $ 266 | $ 71 | $ 205 | $ (205) | $ 94 | $ 73 | $ 950 | $ 167 | $ 161 | ||||||||
[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 Deferred Income Ta
Income Taxes Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred tax assets (1): | |||
Excluding net operating losses U.S. - Federal/States | [1],[2] | $ 107 | $ 357 |
Net operating losses foreign | [1],[3] | 856 | 669 |
Accrued liabilities, reserves, & other expenses | 854 | 780 | |
Stock-based compensation | 727 | 534 | |
Deferred revenue | 189 | 156 | |
Assets held for investment | 148 | 154 | |
Depreciation and amortization | 222 | 117 | |
Other items | 268 | 125 | |
Tax credits | [1],[4] | 41 | 115 |
Total gross deferred tax assets | 3,412 | 3,007 | |
Less valuation allowance | [5] | (1,069) | (901) |
Deferred tax assets, net of valuation allowance | 2,343 | 2,106 | |
Deferred tax liabilities: | |||
Depreciation & amortization | (1,970) | (1,609) | |
Acquisition related intangible assets | (203) | (195) | |
Other items | (88) | (31) | |
Net deferred tax assets, net of valuation allowance | 82 | 271 | |
Stock Based Compensation Expense | |||
Deferred tax assets (1): | |||
Excluding net operating losses U.S. - Federal/States | 380 | 261 | |
Net operating losses foreign | 2 | 2 | |
Tax credits | $ 447 | $ 268 | |
[1] | Deferred tax assets related to net operating losses and tax credits are presented net of tax contingencies. | ||
[2] | Excluding $380 million and $261 million of deferred tax assets as of December 31, 2015 and 2014, 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 $2 million of deferred tax assets as of December 31, 2015 and 2014, related to net operating losses that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. | ||
[4] | Excluding $447 million and $268 million of deferred tax assets as of December 31, 2015 and 2014, related to tax credits that result from excess stock-based compensation and for which any benefit realized will be recorded to stockholders’ equity. | ||
[5] | Relates primarily to deferred tax assets that would only be realizable upon the generation of net income in certain foreign taxing jurisdictions and future capital gains. |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Tax Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Tax Disclosure [Abstract] | ||||
Gross tax contingencies - January 1 | $ 710 | $ 407 | $ 294 | |
Gross increases to tax positions in prior periods | 254 | 351 | 78 | |
Gross decreases to tax positions in prior periods | 22 | 50 | 18 | |
Gross increases to current period tax positions | 242 | 20 | 54 | |
Audit settlements paid | 0 | 16 | 1 | |
Lapse of statute of limitations | 3 | 2 | 0 | |
Gross tax contingencies - December 31 | 1,181 | [1] | $ 710 | $ 407 |
Tax contingencies, that if fully recognized, would decrease our effective tax rate | $ 882 | |||
[1] | Deferred tax assets related to net operating losses and tax credits are presented net of tax contingencies. |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Disclosure [Line Items] | |||
Property and equipment, net | $ 21,838 | $ 16,967 | $ 10,949 |
Number of segments | Segment | 3 | ||
United States | |||
Segment Reporting Disclosure [Line Items] | |||
Property and equipment, net | $ 16,800 | 13,100 | 8,400 |
Rest of World | |||
Segment Reporting Disclosure [Line Items] | |||
Property and equipment, net | $ 5,000 | $ 3,800 | $ 2,500 |
Net Sales | Individual Product or Service Concentration Risk | Maximum | |||
Segment Reporting Disclosure [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
Property, Plant and Equipment | Single Country Excluding U.S. Concentration Risk | Outside United States | Maximum | |||
Segment Reporting Disclosure [Line Items] | |||
Concentration Risk, Percentage | 10.00% |
Segment Information - Reportabl
Segment Information - Reportable Segments and Reconciliation to Consolidated Net Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Disclosure [Line Items] | ||||||||||||||||||||
Net sales | $ 35,747 | $ 25,358 | $ 23,185 | $ 22,717 | $ 29,328 | $ 20,579 | $ 19,340 | $ 19,741 | $ 107,006 | $ 88,988 | $ 74,452 | |||||||||
Segment operating expenses | 104,773 | 88,810 | 73,707 | |||||||||||||||||
Income from operations | 1,108 | 406 | 464 | 255 | 591 | (544) | (15) | 146 | 2,233 | 178 | 745 | |||||||||
Stock-based compensation | (2,119) | (1,497) | (1,134) | |||||||||||||||||
Other operating income (expense), net | (171) | (133) | (114) | |||||||||||||||||
Total non-operating income (expense) | (665) | (289) | (239) | |||||||||||||||||
Provision for income taxes | (453) | (161) | (266) | (71) | (205) | 205 | (94) | (73) | (950) | (167) | (161) | |||||||||
Equity-method investment activity, net of tax | (22) | 37 | (71) | |||||||||||||||||
Net income (loss) | $ 482 | $ 79 | $ 92 | $ (57) | $ 214 | $ (437) | $ (126) | $ 108 | 596 | (241) | 274 | |||||||||
Operating Segments | ||||||||||||||||||||
Segment Reporting Disclosure [Line Items] | ||||||||||||||||||||
Net sales | 107,006 | 88,988 | 74,452 | |||||||||||||||||
Segment operating expenses | [2] | 102,483 | 87,180 | 72,459 | ||||||||||||||||
Income from operations | 4,523 | 1,808 | 1,993 | |||||||||||||||||
Operating Segments | North America Segment | ||||||||||||||||||||
Segment Reporting Disclosure [Line Items] | ||||||||||||||||||||
Net sales | 63,708 | 50,834 | 41,410 | |||||||||||||||||
Segment operating expenses | [2] | 60,957 | 49,542 | 40,244 | ||||||||||||||||
Income from operations | 2,751 | 1,292 | 1,166 | |||||||||||||||||
Operating Segments | Amazon Web Services Segment | ||||||||||||||||||||
Segment Reporting Disclosure [Line Items] | ||||||||||||||||||||
Net sales | 7,880 | 4,644 | 3,108 | |||||||||||||||||
Segment operating expenses | [2] | 6,017 | 3,984 | 2,435 | ||||||||||||||||
Income from operations | 1,863 | 660 | 673 | |||||||||||||||||
Operating Segments | International Segment | ||||||||||||||||||||
Segment Reporting Disclosure [Line Items] | ||||||||||||||||||||
Net sales | 35,418 | 33,510 | 29,934 | |||||||||||||||||
Segment operating expenses | [2] | 35,509 | 33,654 | 29,780 | ||||||||||||||||
Income from operations | $ (91) | $ (144) | $ 154 | |||||||||||||||||
[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] | Excludes 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 ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Revenue from External Customer [Line Items] | ||||||||||||||||||||
Net sales | $ 35,747 | $ 25,358 | $ 23,185 | $ 22,717 | $ 29,328 | $ 20,579 | $ 19,340 | $ 19,741 | $ 107,006 | $ 88,988 | $ 74,452 | |||||||||
Media | ||||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||||
Net sales | 22,509 | 22,505 | 21,716 | |||||||||||||||||
Electronics and other general merchandise | ||||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||||
Net sales | 75,597 | 60,886 | 48,802 | |||||||||||||||||
Amazon Web Services | ||||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||||
Net sales | 7,880 | 4,644 | 3,108 | |||||||||||||||||
Other | ||||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||||
Net sales | [2] | $ 1,020 | $ 953 | $ 826 | ||||||||||||||||
[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 certain advertising services, and our co-branded credit card agreements. |
Segment Information - Net Sal69
Segment Information - Net Sales Attributed to Foreign Countries (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||||
Net sales | $ 35,747 | $ 25,358 | $ 23,185 | $ 22,717 | $ 29,328 | $ 20,579 | $ 19,340 | $ 19,741 | $ 107,006 | $ 88,988 | $ 74,452 | ||||||||
United States | |||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||||
Net sales | 70,537 | 54,717 | 43,959 | ||||||||||||||||
Germany | |||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||||
Net sales | 11,816 | 11,919 | 10,535 | ||||||||||||||||
Japan | |||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||||
Net sales | 8,264 | 7,912 | 7,639 | ||||||||||||||||
United Kingdom | |||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||||
Net sales | 9,033 | 8,341 | 7,291 | ||||||||||||||||
Rest of World | |||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||||
Net sales | $ 7,356 | $ 6,099 | $ 5,028 | ||||||||||||||||
[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 - Reconcili
Segment Information - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | $ 65,444 | $ 54,505 | $ 40,159 | |
Amazon Web Services Segment | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | [1] | 9,787 | 6,981 | 3,840 |
North America Segment | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | [2] | 16,772 | 13,257 | 9,991 |
International Segment | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | [2] | 7,754 | 6,747 | 6,199 |
Corporate, Non-Segment | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | $ 31,131 | $ 27,520 | $ 20,129 | |
[1] | AWS segment assets primarily consist of property and equipment and accounts receivable. | |||
[2] | North America and International segment assets primarily consist of inventory, accounts receivable, and property and equipment. |
Segment Information - Reconci71
Segment Information - Reconciliation of Property and Equipment from Segments to Consolidated (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Property and equipment, net | $ 21,838 | $ 16,967 | $ 10,949 |
North America Segment | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Property and equipment, net | 6,707 | 5,373 | 3,477 |
International Segment | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Property and equipment, net | 2,266 | 2,000 | 1,549 |
Amazon Web Services Segment | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Property and equipment, net | 8,356 | 6,043 | 3,253 |
Corporate, Non-Segment | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Property and equipment, net | $ 4,509 | $ 3,551 | $ 2,670 |
Segment Information - Reconci72
Segment Information - Reconciliation of Property and Equipment Additions from Segments to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Reconciliation of Property and Equipment Additions from Segments to Consolidated [Line Items] | ||||
Property and equipment additions | $ 9,625 | $ 9,481 | $ 6,373 | |
Capital Leased Assets, Gross | 12,000 | 7,900 | ||
Finance Leased Assets, Gross | 2,000 | 1,400 | ||
North America Segment | ||||
Reconciliation of Property and Equipment Additions from Segments to Consolidated [Line Items] | ||||
Property and equipment additions | [1] | 2,485 | 2,833 | 2,326 |
International Segment | ||||
Reconciliation of Property and Equipment Additions from Segments to Consolidated [Line Items] | ||||
Property and equipment additions | [1] | 658 | 767 | 851 |
Amazon Web Services Segment | ||||
Reconciliation of Property and Equipment Additions from Segments to Consolidated [Line Items] | ||||
Property and equipment additions | [2] | 4,681 | 4,295 | 2,215 |
Corporate, Non-Segment | ||||
Reconciliation of Property and Equipment Additions from Segments to Consolidated [Line Items] | ||||
Property and equipment additions | 1,801 | 1,586 | 981 | |
Assets held under capital leases | North America And International Segment | ||||
Reconciliation of Property and Equipment Additions from Segments to Consolidated [Line Items] | ||||
Property and equipment additions | 938 | 887 | 555 | |
Assets held under capital leases | Amazon Web Services Segment | ||||
Reconciliation of Property and Equipment Additions from Segments to Consolidated [Line Items] | ||||
Property and equipment additions | 3,700 | 3,000 | 1,300 | |
Assets held under build-to-suit leases | North America And International Segment | ||||
Reconciliation of Property and Equipment Additions from Segments to Consolidated [Line Items] | ||||
Property and equipment additions | 219 | 599 | 715 | |
Assets held under build-to-suit leases | Amazon Web Services Segment | ||||
Reconciliation of Property and Equipment Additions from Segments to Consolidated [Line Items] | ||||
Property and equipment additions | $ 81 | $ 62 | $ 67 | |
[1] | Includes property and equipment added under capital leases of $938 million, $887 million, and $555 million in 2015, 2014, and 2013, and under other financing arrangements of $219 million, $599 million, and $715 million in 2015, 2014, and 2013. | |||
[2] | Includes property and equipment added under capital leases of $3.7 billion, $3.0 billion, and $1.3 billion in 2015, 2014, and 2013 and under finance leases of $81 million, $62 million, and $67 million in 2015, 2014, and 2013. |
Segment Information - Depreciat
Segment Information - Depreciation Expense, by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation Of Depreciation By Segment [Line Items] | |||
Depreciation expense | $ 4,949 | $ 3,616 | $ 2,460 |
North America Segment | |||
Reconciliation Of Depreciation By Segment [Line Items] | |||
Depreciation expense | 1,551 | 1,203 | 914 |
International Segment | |||
Reconciliation Of Depreciation By Segment [Line Items] | |||
Depreciation expense | 822 | 740 | 583 |
Amazon Web Services Segment | |||
Reconciliation Of Depreciation By Segment [Line Items] | |||
Depreciation expense | $ 2,576 | $ 1,673 | $ 963 |
Quarterly Results (Unaudited) -
Quarterly Results (Unaudited) - Unaudited Quarterly Results (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Net sales | $ 35,747 | $ 25,358 | $ 23,185 | $ 22,717 | $ 29,328 | $ 20,579 | $ 19,340 | $ 19,741 | $ 107,006 | $ 88,988 | $ 74,452 | ||||||||
Income (loss) from operations | 1,108 | 406 | 464 | 255 | 591 | (544) | (15) | 146 | 2,233 | 178 | 745 | ||||||||
Income (loss) before income taxes | 938 | 247 | 362 | 21 | 429 | (634) | (27) | 120 | 1,568 | (111) | 506 | ||||||||
Provision for income taxes | (453) | (161) | (266) | (71) | (205) | 205 | (94) | (73) | (950) | (167) | (161) | ||||||||
Net income (loss) | $ 482 | $ 79 | $ 92 | $ (57) | $ 214 | $ (437) | $ (126) | $ 108 | $ 596 | $ (241) | $ 274 | ||||||||
Basic earnings per share | $ 1.03 | $ 0.17 | $ 0.20 | $ (0.12) | $ 0.46 | $ (0.95) | $ (0.27) | $ 0.23 | $ 1.28 | $ (0.52) | $ 0.60 | ||||||||
Diluted earnings per share | $ 1 | $ 0.17 | $ 0.19 | $ (0.12) | $ 0.45 | $ (0.95) | $ (0.27) | $ 0.23 | $ 1.25 | $ (0.52) | $ 0.59 | ||||||||
Shares used in computation of earnings per share: | |||||||||||||||||||
Basic | 470 | 468 | 467 | 465 | 464 | 463 | 461 | 460 | 467 | 462 | 457 | ||||||||
Diluted | 481 | 478 | 476 | 465 | 472 | 463 | 461 | 468 | 477 | 462 | 465 | ||||||||
[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. |