| Statement Of Cash Flows Indirect (USD $) | ||||||
| In Millions | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 | 12 Months Ended
Sep. 30, 2009 | 12 Months Ended
Sep. 30, 2008 |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | $1,936 | $1,548 | $2,769 | $2,539 | $1,650 | $1,366 |
| OPERATING ACTIVITIES: | ||||||
| Net income | 199 | 118 | 518 | 420 | 743 | 627 |
| Adjustments to reconcile net income to net cash from operating activities: | ||||||
| Depreciation of fixed assets, including internal-use software and website development, and other amortization | 96 | 76 | 266 | 210 | 343 | 273 |
| Stock-based compensation | 90 | 70 | 242 | 197 | 320 | 251 |
| Other operating expense (income), net | 9 | 7 | 80 | (32) | 90 | (29) |
| Losses (gains) on sales of marketable securities, net | (1) | 1 | (3) | (2) | (3) | (2) |
| Other expense (income), net | (9) | (24) | (21) | (17) | (38) | (18) |
| Deferred income taxes | 77 | (17) | 84 | (47) | 125 | (144) |
| Excess tax charges (benefits) from stock-based compensation | 17 | (53) | (52) | (160) | (52) | (323) |
| Changes in operating assets and liabilities: | ||||||
| Inventories | (276) | (243) | (192) | (130) | (293) | (361) |
| Accounts receivable, net and other | (155) | (9) | 28 | 106 | (296) | (131) |
| Accounts payable | 701 | 362 | (372) | (524) | 964 | 620 |
| Accrued expenses and other | (3) | 101 | (131) | 39 | 77 | 437 |
| Additions to unearned revenue | 197 | 121 | 610 | 286 | 772 | 366 |
| Amortization of previously unearned revenue | (143) | (86) | (375) | (220) | (499) | (291) |
| Net cash provided by (used in) operating activities | 799 | 424 | 682 | 126 | 2,253 | 1,275 |
| INVESTING ACTIVITIES: | ||||||
| Purchases of fixed assets, including internal-use software and website development | (103) | (102) | (236) | (231) | (337) | (305) |
| Acquisitions, net of cash acquired, and other | (5) | (8) | (40) | (408) | (127) | (436) |
| Sales and maturities of marketable securities and other investments | 586 | 582 | 1,277 | 1,033 | 1,550 | 1,149 |
| Purchases of marketable securities and other investments | (780) | (478) | (1,730) | (1,229) | (2,179) | (1,382) |
| Net cash provided by (used in) investing activities | (302) | (6) | (729) | (835) | (1,093) | (974) |
| FINANCING ACTIVITIES: | ||||||
| Excess tax benefits (charges) from stock-based compensation | (17) | 53 | 53 | 160 | 52 | 323 |
| Common stock repurchased | 0 | 0 | 0 | 0 | (100) | 0 |
| Proceeds from long-term debt and other | 101 | 2 | 97 | 62 | 149 | 91 |
| Repayments of long-term debt and capital lease obligations | (20) | (295) | (379) | (355) | (394) | (380) |
| Net cash provided by (used in) financing activities | 64 | (240) | (229) | (133) | (293) | 34 |
| Foreign-currency effect on cash and cash equivalents | 17 | (76) | 21 | (47) | (3) | (51) |
| Net increase (decrease) in cash and cash equivalents | 578 | 102 | (255) | (889) | 864 | 284 |
| CASH AND CASH EQUIVALENTS, END OF PERIOD | 2,514 | 1,650 | 2,514 | 1,650 | 2,514 | 1,650 |
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||
| Cash paid for interest | 2 | 14 | 30 | 61 | 32 | 62 |
| Cash paid for income taxes | 10 | 5 | 44 | 28 | 69 | 38 |
| Fixed assets acquired under capital leases and other financing arrangements | 60 | 37 | 97 | 104 | 141 | 136 |
| Fixed assets acquired under build-to-suit leases | 16 | 19 | 133 | 35 | 170 | 50 |
| Conversion of debt | $0 | $132 | $0 | $605 | $0 | $605 |
| Statement Of Income (USD $) | |||||||||||||||||||
| In Millions, except Per Share data | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 | |||||||||||||||
| Net sales | $5,449 | $4,264 | $14,989 | $12,463 | |||||||||||||||
| Cost of sales | 4,176 | 3,265 | 11,435 | 9,541 | |||||||||||||||
| Gross profit | 1,273 | 999 | 3,554 | 2,922 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Fulfillment | 466 | 393 | 1,297 | 1,109 | |||||||||||||||
| Marketing | 149 | 108 | 406 | 313 | |||||||||||||||
| Technology and content | 315 | 264 | 890 | 755 | |||||||||||||||
| General and administrative | 83 | 73 | 228 | 208 | |||||||||||||||
| Other operating expense (income), net | 9 | 7 | 80 | (32) | |||||||||||||||
| Total operating expenses | 1,022 | [1] | 845 | [1] | 2,901 | [1] | 2,353 | [1] | |||||||||||
| Income from operations | 251 | 154 | 653 | 569 | |||||||||||||||
| Interest income | 7 | 21 | 28 | 67 | |||||||||||||||
| Interest expense | (7) | (17) | (26) | (60) | |||||||||||||||
| Other income (expense), net | 11 | 24 | 35 | 22 | |||||||||||||||
| Total non-operating income (expense) | 11 | 28 | 37 | 29 | |||||||||||||||
| Income before income taxes | 262 | 182 | 690 | 598 | |||||||||||||||
| Provision for income taxes | (60) | (59) | (169) | (167) | |||||||||||||||
| Equity-method investment activity, net of tax | (3) | (5) | (3) | (11) | |||||||||||||||
| Net income | $199 | $118 | $518 | $420 | |||||||||||||||
| Basic earnings per share | 0.46 | 0.28 | 1.2 | $1 | |||||||||||||||
| Diluted earnings per share | 0.45 | 0.27 | 1.18 | 0.97 | |||||||||||||||
| Weighted average shares used in computation of earnings per share: | |||||||||||||||||||
| Basic | 432 | 427 | 431 | 421 | |||||||||||||||
| Diluted | 441 | 436 | 439 | 431 | |||||||||||||||
| [1]Includes stock-based compensation as follows: Fulfillment $ 22 $ 15 $ 57 $ 42 Marketing 5 4 14 10 Technology and content 48 38 130 109 General and administrative 15 13 41 36 | |||||||||||||||||||
| Statement Of Financial Position Classified (USD $) | ||
| In Millions | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Dec. 31, 2008 |
| Current assets: | ||
| Cash and cash equivalents | $2,514 | $2,769 |
| Marketable securities | 1,487 | 958 |
| Inventories | 1,617 | 1,399 |
| Accounts receivable, net and other | 671 | 827 |
| Deferred tax assets | 80 | 204 |
| Total current assets | 6,369 | 6,157 |
| Fixed assets, net | 1,086 | 854 |
| Deferred tax assets | 206 | 145 |
| Goodwill | 457 | 438 |
| Other assets | 854 | 720 |
| Total assets | 8,972 | 8,314 |
| Current liabilities: | ||
| Accounts payable | 3,354 | 3,594 |
| Accrued expenses and other | 1,183 | 1,152 |
| Total current liabilities | 4,537 | 4,746 |
| Long-term debt | 116 | 409 |
| Other long-term liabilities | 734 | 487 |
| Commitments and contingencies | - | - |
| Stockholders' equity: | ||
| Preferred stock, $0.01 par value: Authorized shares - 500 Issued and outstanding shares - none | 0 | 0 |
| Common stock, $0.01 par value: Authorized shares - 5,000 Issued shares - 449 and 445 Outstanding shares - 433 and 428 | 4 | 4 |
| Treasury stock, at cost | (600) | (600) |
| Additional paid-in capital | 4,428 | 4,121 |
| Accumulated other comprehensive loss | (35) | (123) |
| Accumulated deficit | (212) | (730) |
| Total stockholders' equity | 3,585 | 2,672 |
| Total liabilities and stockholders' equity | $8,972 | $8,314 |
| Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
| Share data in Millions, except Per Share data | Sep. 30, 2009
| Dec. 31, 2008
|
| Preferred stock, par value | 0.01 | 0.01 |
| Preferred stock, Authorized shares | 500 | 500 |
| Preferred stock, Issued shares | 0 | 0 |
| Preferred stock, outstanding shares | 0 | 0 |
| Common stock, par value | 0.01 | 0.01 |
| Common stock, Authorized shares | 5,000 | 5,000 |
| Common stock, Issued shares | 449 | 445 |
| Common stock, Outstanding shares | 433 | 428 |
| Note 1 - Accounting Policies | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 1 - Accounting Policies | Note 1 Accounting Policies Unaudited Interim Financial Information We have prepared the accompanying consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC) for interim financial reporting. These consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our consolidated balance sheets, operating results, and cash flows for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2009 due to seasonal and other factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been omitted in accordance with the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our 2008 Annual Report on Form 10-K. Certain prior period amounts have been reclassified to conform to the current period presentation. Principles of Consolidation The consolidated financial statements include the accounts of Amazon.com, Inc. (the Company), its wholly-owned subsidiaries, and those entities (relating primarily to www.amazon.cn) in which we have a variable interest and are the primary beneficiary. Intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities. Estimates are used for, but not limited to, valuation of investments, collectability of receivables, sales returns, incentive discount offers, valuation of inventory, depreciable lives of fixed assets and internally-developed software, valuation of acquired intangibles and goodwill, income taxes, stock-based compensation, and contingencies. Actual results could differ materially from those estimates. Subsequent Events We have evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through October22, 2009, the day the financial statements were issued. 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. Treasury Stock We account for treasury stock under the cost method and include treasury stock as a component of stockholders equity. Accounts Receivable, Net and Other Included in Accounts receivable, net and other on our consolidated balance sheets are amounts primarily related to vendor and customer receivables. At September30, 2009 and December31, 2008, vendor receivables, net, were $243 |
| Note 2 - Cash, Cash Equivalents, and Marketable Securities | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 2 - Cash, Cash Equivalents, and Marketable Securities | Note 2 Cash, Cash Equivalents, and Marketable Securities As of September30, 2009 and December31, 2008 our cash, cash equivalents, and marketable securities primarily consisted of cash, government and government agency securities, AAA-rated money market funds, and other investment grade securities. Such amounts are recorded at fair value. The following table summarizes, by major security type, our cash, cash equivalents, and marketable securities (in millions): September 30, 2009 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated FairValue Cash $ 320 $ $ $ 320 Money market funds 2,178 2,178 Foreign government and agency securities 1,223 9 1,232 U.S. government and agency securities 361 6 367 Corporate debt securities (1) 151 6 157 Asset-backed securities 47 1 48 Other fixed income securities 1 1 Equity securities 1 1 $ 4,282 $ 22 $ $ 4,304 Less: Long-term marketable securities (2) (303 ) Total cash, cash equivalents, and marketable securities $ 4,001 (1) Corporate debt securities include investments in financial, insurance, and corporate institutions. No single issuer represents a significant portion of the total corporate debt securities portfolio. (2) We are required to pledge or otherwise restrict a portion of our marketable securities as collateral for standby letters of credit, guarantees, debt and real estate lease agreements. We classify cash and marketable securities with use restrictions of twelve months or longer as non-current Other assets on our consolidated balance sheets. See Note 4 Commitments and Contingencies. The following table summarizes gross gains and gross losses realized on sales of available-for-sale marketable securities, including Euro-denominated securities (in millions): ThreeMonthsEnded September30, NineMonthsEnded September 30, 2009 2008 2009 2008 Realized gains $ 1 $ 3 $ 7 $ 8 Realized losses 4 4 6 Realized gains and losses are included in Other income (expense), net on our consolidated statements of operations. The following table summarizes, by major security type, our assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in millions): September 30, 2009 Cash Level 1 Estimated FairValue Level 2 Estimated FairValue Level 3 Estimated FairValue Total Estimated FairValue Cash $ 320 $ $ $ $ 320 Money market funds 2,178 2,178 Foreign government and agency securities 1,232 1,232 U.S. government and agency securities 367 367 Corporate debt securities 157 157 Asset-backed securities |
| Note 3 - Long-Term Debt | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 3 - Long-Term Debt | Note 3 Long-Term Debt In February 2008, our Board of Directors authorized a debt repurchase program, pursuant to which in Q1 2009 we redeemed the remaining 240million ($319 million based on the Euro to U.S.Dollar exchange rate on the date of redemption) in principal of our 6.875% Premium Adjustable Convertible Securities (PEACS). |
| Note 4 - Commitments and Contingencies | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 4 - Commitments and Contingencies | Note 4 Commitments and Contingencies Commitments We lease office and fulfillment center facilities and fixed assets under non-cancelable operating and capital leases. Rental expense under operating lease agreements was $42 million and $38 million for Q3 2009 and Q3 2008, and $125 million and $117 million for the nine months ended September30, 2009 and 2008. In December 2007, we entered into a series of leases and other agreements for the lease of corporate office space to be developed in Seattle, Washington with initial terms of up to 16 years commencing on completion of development between 2010 and 2013, with options to extend for two five-year periods. We expect to occupy approximately 1.7 million square feet of office space. We also have an option to lease up to an additional approximately 500,000 square feet at rates based on fair market values at the time the option is exercised, subject to certain conditions. In addition, if interest rates exceed a certain threshold, we have the option to provide financing for some of the buildings. The following summarizes our principal contractual commitments, excluding open orders for inventory purchases that support normal operations, as of September30, 2009: ThreeMonths Ended December 31, 2009 Year Ended December 31, 2010 2011 2012 2013 Thereafter Total (in millions) Operating and capital commitments: Debt principal $ 17 $ 7 $ 41 $ 33 $ 35 $ $ 133 Debt interest 2 8 7 2 1 20 Capital leases, including interest 30 110 76 31 6 1 254 Operating leases 39 145 123 113 109 393 922 Other commitments (1) (2) 31 173 75 92 79 1,278 1,728 Total commitments $ 119 $ 443 $ 322 $ 271 $ 230 $ 1,672 $ 3,057 (1) Includes the estimated timing and amounts of payments for rent, operating expenses, and tenant improvements associated with approximately 1.7 million square feet of corporate office space being developed in Seattle, Washington. The amount of space available and our financial and other obligations under the lease agreements are affected by various factors, including government approvals and permits, interest rates, development costs, and other expenses and our exercise of certain rights under the lease agreements. (2) Excludes $175 million of tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any. See Note 1 Accounting Policies Income Taxes. In July 2009, we entered into an agreement to acquire all of the outstanding shares and assume all outstanding options and warrants of Zappos.com, Inc. in exchange for approximately 10million shares of our common stock. In addition, we will provide Zappos.com employees with $40 million in cash and restricted stock units. Subject to various closing conditions, the acquisition is expected to close d |
| Note 5 - Stockholders' Equity | |
| 1/1/2009 - 9/30/2009
USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 5 - Stockholders' Equity | Note 5 Stockholders Equity Stock Award Activity We granted restricted stock units representing 0.5million and 0.9million shares of common stock during Q3 2009 and Q3 2008 with a per share weighted average fair value of $86.68 and $76.59. For the nine months ended September30, 2009 and 2008, we granted restricted stock units representing 5.3million and 6.4million shares of common stock with a per share weighted average fair value of $73.78 and $75.06. Our annual stock awards are granted in the second quarter. Common shares outstanding plus shares underlying outstanding stock awards totaled 451million and 446million at September30, 2009 and December31, 2008. These totals include all stock-based awards outstanding, without regard for estimated forfeitures. The following table summarizes our restricted stock unit activity for the nine months ended September30, 2009 (inmillions): NumberofUnits Outstanding at December 31, 2008 16.7 Units granted 5.3 Units vested (4.0 ) Units cancelled (0.8 ) Outstanding at September 30, 2009 17.2 Scheduled vesting for outstanding restricted stock units at September30, 2009 is as follows (in millions): ThreeMonths Ended December31, 2009 Year Ended December 31, 2010 2011 2012 2013 Thereafter Total Scheduled vestingrestricted stock units 2.0 5.9 5.4 2.4 1.1 0.4 17.2 As of September30, 2009, there was $415 million of net unrecognized compensation cost related to unvested stock-based compensation arrangements. This compensation is recognized on an accelerated basis, resulting in approximately half of the compensation expected to be expensed in the next twelve months, and has a weighted average recognition period of 1.2 years. |
| Note 6 - Comprehensive Income | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 6 - Comprehensive Income | Note 6 Comprehensive Income Comprehensive income was $222 million and $40 million for Q3 2009 and Q3 2008, and $606 million and $342 million for the nine months ended September30, 2009 and 2008. The primary differences between net income as reported and comprehensive income are foreign currency translation adjustments, net of tax, and changes in unrealized gains and losses on available-for-sale securities, net of tax. |
| Note 7 - Income Taxes | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 7 - Income Taxes | Note 7 Income Taxes Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes we make a cumulative adjustment. The 2009 annual effective tax rate is estimated to be lower than the 35% U.S. federal statutory rate primarily due to anticipated earnings of our subsidiaries outside of the U.S. in jurisdictions where our effective tax rate is lower than in the U.S. We reached a settlement with Toysrus.com LLC for $51 million, substantially all of which was expensed in Q2 2009. The U.S. federal tax impact related to this settlement is included in the total tax provision as a discrete item in Q2 2009. Included in the total tax provision as a discrete item during Q2 2008 is the impact related to the $53 million noncash gain associated with the sale of our European DVD rental assets. This gain was taxed at rates substantially below the 35% U.S. federal statutory rate. Cash paid for income taxes was $10 million and $5 million in Q3 2009 and Q3 2008, and $44 million and $28 million for the nine months ended September30, 2009 and 2008. As of September30, 2009 and December31, 2008, tax contingencies were $175 million and $166 million. Due to the nature of our business operations we expect the total amount of tax contingences for prior period tax positions will grow over the next 12 months in comparable amounts to the prior 12 months. We do not believe it is reasonably possible that the total amount of unrecognized tax benefits will significantly decrease within the next 12 months. We are under examination, or may be subject to examination, by the Internal Revenue Service (IRS) for calendar years 2005 through 2008. Additionally, any net operating losses that were generated in prior years and utilized in 2005 through 2008 may also be subject to examination by the IRS. We are under examination, or may be subject to examination, in the following major jurisdictions for the years specified: Kentucky for 2004 through 2008, France for 2006 through 2008, Germany for 2003 through 2008, Luxembourg for 2004 through 2008, and the United Kingdom for 2003 through 2008. In addition, in 2007, Japanese tax authorities assessed income tax, including penalties and interest, of approximately $123 million against one of our U.S. subsidiaries for the years 2003 through 2005. We believe that these claims are without merit and are disputing the assessment. Further proceedings on the assessment have been stayed during negotiations between U.S. and Japanese authorities over the double taxation issues the assessment raises, and we have provided bank guarantees to suspend enforcement of the assessment. We also may be subject to income tax examination by Japanese tax authorities for 2006 through 2008. |
| Note 8 - Segment Information | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 8 - Segment Information | Note 8 Segment Information We have organized our operations into two principal segments: North America and International. We present our segment information along the same lines that our chief executive reviews our operating results in assessing performance and allocating resources. We allocate to segment results the operating expenses Fulfillment, Marketing, Technology and content, and General and administrative, but exclude from our allocations the portions of these expense lines attributable to stock-based compensation. We do not allocate the line item Other operating expense (income), net to our segment operating results. A significant majority of our costs for Technology and content are incurred in the United States and most of these costs are allocated to our North America segment. There are no internal revenue transactions between our reporting segments. Information on reportable segments and reconciliation to consolidated net income was as follows: ThreeMonthsEnded September30, Nine Months Ended September 30, 2009 2008 2009 2008 (in millions) (in millions) North America Net sales $ 2,843 $ 2,302 $ 7,872 $ 6,597 Cost of sales 2,091 1,716 5,754 4,883 Gross profit 752 586 2,118 1,714 Direct segment operating expenses 596 498 1,687 1,400 Segment operating income $ 156 $ 88 $ 431 $ 314 International Net sales $ 2,606 $ 1,962 $ 7,117 $ 5,866 Cost of sales 2,085 1,549 5,681 4,658 Gross profit 521 413 1,436 1,208 Direct segment operating expenses 327 270 892 788 Segment operating income $ 194 $ 143 $ 544 $ 420 Consolidated Net sales $ 5,449 $ 4,264 $ 14,989 $ 12,463 Cost of sales 4,176 3,265 11,435 9,541 Gross profit 1,273 999 3,554 2,922 Direct segment operating expenses 923 768 2,579 2,188 Segment operating income 350 231 975 734 Stock-based compensation (90 ) (70 ) (242 ) (197 ) Other operating income (expense), net (9 ) (7 ) (80 ) 32 Income from operations 251 154 653 569 Total non-operating income (expense) 11 28 37 29 Provision for income taxes (60 ) (59 ) (169 ) (167 ) Equity-method investment activity, net of tax (3 ) (5 ) (3 ) (11 ) Net income $ 199 $ 118 $ 518 $ 420 |
| Document Information | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Document Information [Text Block] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Document Period End Date | 2009-09-30 |
| Entity Information (USD $) | ||
| 9 Months Ended
Sep. 30, 2009 | Oct. 19, 2009
| |
| Entity [Text Block] | ||
| Trading Symbol | AMZN | |
| Entity Registrant Name | AMAZON COM INC | |
| Entity Central Index Key | 0001018724 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 432,982,766 |
