4 unchanged sentences
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30, Twelve Months Ended
−Removed: September 30,
+Added: March 31, Twelve Months Ended
2023 2024 2023 2024
1 unchanged sentence
OPERATING ACTIVITIES:
−Removed: Net income (loss) 2,872 9,879 ( 3,000 ) 19,801 11,323 20,079
−Removed: Adjustments to reconcile net income (loss) to net cash from operating activities:
+Added: Net income 3,172 10,431 4,294 37,684
+Added: Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other 11,123 11,684 43,851 49,224
5 unchanged sentences
Accounts receivable, net and other 4,724 3,684 ( 4,361 ) ( 9,388 )
+Added: Other assets ( 3,203 ) ( 2,701 ) ( 14,499 ) ( 11,763 )
Accounts payable ( 11,264 ) ( 11,282 ) 1,061 5,455
26 unchanged sentences
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2022 2023 2022 2023
Net product sales $ 56,981 $ 60,915
13 unchanged sentences
Other income (expense), net ( 443 ) ( 2,673 )
−Removed: Total non-operating income (expense) 419 1,001 ( 14,485 ) 228
−Removed: Income (loss) before income taxes 2,944 12,189 ( 4,974 ) 23,871
−Removed: Benefit (provision) for income taxes ( 69 ) ( 2,306 ) 1,990 ( 4,058 )
+Added: Total non-operating expense ( 655 ) ( 2,324 )
+Added: Income before income taxes 4,119 12,983
+Added: Provision for income taxes ( 948 ) ( 2,467 )
Equity-method investment activity, net of tax 1 ( 85 )
−Removed: Net income (loss) $ 2,872 $ 9,879 $ ( 3,000 ) $ 19,801
+Added: Net income $ 3,172 $ 10,431
Basic earnings per share $ 0.31 $ 1.00
5 unchanged sentences
AMAZON.COM, INC.
−Removed: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
+Added: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2022 2023 2022 2023
−Removed: Net income (loss) $ 2,872 $ 9,879 $ ( 3,000 ) $ 19,801
+Added: Net income $ 3,172 $ 10,431
Other comprehensive income (loss):
1 unchanged sentence
386 ( 1,096 )
−Removed: Net change in unrealized gains (losses) on available-for-sale debt securities:
−Removed: Unrealized gains (losses), net of tax of $( 4 ), $( 18 ), $( 3 ), and $( 52 )
−Removed: ( 195 ) 62 ( 1,095 ) 174
+Added: Available-for-sale debt securities:
+Added: Change in net unrealized gains (losses), net of tax of $( 29 ) and $( 158 )
reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $( 10 ) and $ 0
−Removed: Net unrealized gains (losses) on available-for-sale debt securities ( 191 ) 65 ( 1,078 ) 222
+Added: Net change 128 537
+Added: Other, net of tax of $ 0 and $( 1 )
Total other comprehensive income (loss) 514 ( 558 )
−Removed: Comprehensive income (loss) $ 539 $ 8,556 $ ( 8,739 ) $ 19,285
+Added: Comprehensive income $ 3,686 $ 9,873
See accompanying notes to consolidated financial statements.
2 unchanged sentences
(in millions, except per share data)
−Removed: December 31, 2022 September 30, 2023
+Added: December 31, 2023 March 31, 2024
Current assets:
45 unchanged sentences
Certain prior period amounts have been reclassified to conform to the current period presentation.
−Removed: “Other operating expense (income), net” was reclassified into “Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other” on our consolidated statements of cash flows.
+Added: “Other assets” were reclassified out of “Accounts receivable, net and other” on our consolidated statements of cash flows.
Principles of Consolidation
6 unchanged sentences
Actual results could differ materially from these estimates.
−Removed: For the nine months ended September 30, 2023, we recorded approximately $ 500 million of estimated severance costs primarily related to planned role eliminations.
−Removed: These charges were recorded primarily in “Technology and infrastructure,” “Sales and marketing,” and “General and administrative” on our consolidated statements of operations and included approximately $ 280 million recorded within our AWS segment.
−Removed: For the nine months ended September 30, 2022 and 2023, we recorded approximately $ 350 million and $ 420 million of impairments of property and equipment and operating leases primarily related to physical stores in 2022 and fulfillment network facilities and physical stores in 2023.
−Removed: These charges were recorded in “Other operating expense (income), net” on our consolidated statements of operations and primarily impacted our North America segment.
−Removed: For the nine months ended September 30, 2022 and 2023, we also recorded expenses of approximately $ 300 million and $ 200 million primarily in “Fulfillment” in 2022 and “Cost of sales” and “Fulfillment” in 2023, on our consolidated statements of operations primarily relating to terminating contracts for certain leases not yet commenced as well as other purchase commitments, which primarily impacted our North America segment.
+Added: We review the useful lives of equipment on an ongoing basis, and effective January 1, 2024 we changed our estimate of the useful lives for our servers from five to six years .
+Added: The longer useful lives are due to continuous improvements in our hardware, software, and data center designs.
+Added: The effect of this change in estimate for Q1 2024, based on servers that were included in “Property and equipment, net” as of December 31, 2023 and those acquired during the three months ended March 31, 2024, was a reduction in depreciation and amortization expense of $ 897 million and a benefit to net income of $ 695 million, or $ 0.07 per basic share and $ 0.07 per diluted share.
Supplemental Cash Flow Information
1 unchanged sentence
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30, Twelve Months Ended
−Removed: September 30,
+Added: March 31, Twelve Months Ended
2023 2024 2023 2024
16 unchanged sentences
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2022 2023 2022 2023
Shares used in computation of basic earnings per share 10,250 10,393
4 unchanged sentences
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2022 2023 2022 2023
Marketable equity securities valuation gains (losses) $ ( 480 ) $ ( 2,126 )
4 unchanged sentences
Total other income (expense), net ( 443 ) ( 2,673 )
−Removed: Included in other income (expense), net is a marketable equity securities valuation gain (loss) of $ 1.1 billion and $ 1.2 billion in Q3 2022 and Q3 2023, and $( 10.4 ) billion and $ 926 million for the nine months ended September 30, 2022 and 2023, from our equity investment in Rivian Automotive, Inc.
−Removed: Our investment in Rivian’s preferred stock was accounted for at cost, with adjustments for observable changes in prices or impairments, prior to Rivian’s initial public offering in November 2021, which resulted in the conversion of our preferred stock to Class A common stock.
−Removed: As of September 30, 2023, we held 158 million shares of Rivian’s Class A common stock, representing an approximate 17 % ownership interest, and an approximate 15 % voting interest.
−Removed: We determined that we have the ability to exercise significant influence over Rivian through our equity investment, our commercial arrangement for the purchase of electric vehicles, and one of our employees serving on
−Removed: Rivian’s board of directors.
−Removed: We elected the fair value option to account for our equity investment in Rivian, which is included in “Marketable securities” on our consolidated balance sheets, and had a fair value of $ 2.9 billion and $ 3.8 billion as of December 31, 2022 and September 30, 2023.
−Removed: The investment was subject to regulatory sales restrictions resulting in a discount for lack of marketability of approximately $ 800 million as of December 31, 2021, which expired in Q1 2022.
+Added: Included in “Other income (expense), net” is a marketable equity securities valuation gain (loss) of $( 467 ) million and $( 2.0 ) billion in Q1 2023 and Q1 2024, from our equity investment in Rivian Automotive, Inc.
+Added: As of March 31, 2024, we held 158 million shares of Rivian’s Class A common stock, representing an approximate 16 % ownership interest, and an approximate 15 % voting interest.
+Added: We determined that we have the ability to exercise significant influence over Rivian through our equity investment, our commercial arrangement for the purchase of electric vehicles and jointly-owned intellectual property, and one of our employees serving on Rivian’s board of directors.
+Added: We elected the fair value option to account for our equity investment in Rivian, which is included in “Marketable securities” on our consolidated balance sheets, and had a fair value of $ 3.7 billion and $ 1.7 billion as of December 31, 2023 and March 31, 2024.
Required summarized financial information of Rivian as disclosed in its most recent SEC filings is as follows (in millions):
−Removed: Six Months Ended June 30,
+Added: Twelve Months Ended December 31,
Revenues $ 1,658 $ 4,434
4 unchanged sentences
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.
−Removed: The inventory valuation allowance, representing a write-down of inventory, was $ 2.8 billion and $ 2.6 billion as of December 31, 2022 and September 30, 2023.
+Added: The inventory valuation allowance, representing a write-down of inventory, was $ 3.0 billion and $ 2.6 billion as of December 31, 2023 and March 31, 2024.
Accounts Receivable, Net and Other
Included in “Accounts receivable, net and other” on our consolidated balance sheets are receivables primarily related to customers, vendors, and sellers, as well as prepaid expenses and other current assets.
−Removed: As of December 31, 2022 and September 30, 2023, customer receivables, net, were $ 26.6 billion and $ 28.1 billion, vendor receivables, net, were $ 6.9 billion and $ 6.3 billion, seller receivables, net, were $ 1.3 billion and $ 1.2 billion, and other receivables, net, were $ 3.1 billion and $ 2.5 billion.
+Added: As of December 31, 2023 and March 31, 2024, customer receivables, net, were $ 34.1 billion and $ 31.8 billion, vendor receivables, net, were $ 8.5 billion and $ 6.7 billion, seller receivables, net, were $ 1.0 billion and $ 0.6 billion, and other receivables, net, were $ 3.3 billion and $ 3.1 billion.
Seller receivables are amounts due from sellers related to our seller lending program, which provides funding to sellers primarily to procure inventory.
−Removed: Prepaid expenses and other current assets were $ 4.5 billion and $ 5.3 billion as of December 31, 2022 and September 30, 2023.
+Added: Prepaid expenses and other current assets were $ 5.4 billion and $ 5.6 billion as of December 31, 2023 and March 31, 2024.
We estimate losses on receivables based on expected losses, including our historical experience of actual losses.
−Removed: The allowance for doubtful accounts was $ 1.4 billion and $ 1.5 billion as of December 31, 2022 and September 30, 2023.
+Added: The allowance for doubtful accounts was $ 1.7 billion as of December 31, 2023 and March 31, 2024.
Digital Video and Music Content
−Removed: The total capitalized costs of video, which is primarily released content, and music as of December 31, 2022 and September 30, 2023 were $ 16.7 billion and $ 18.0 billion.
−Removed: The weighted average remaining life of our capitalized video content is 3.6 years.
−Removed: Total video and music expense was $ 4.2 billion and $ 4.6 billion in Q3 2022 and Q3 2023, and $ 11.4 billion and $ 13.0 billion for the nine months ended September 30, 2022 and 2023.
+Added: The total capitalized costs of video, which is primarily released content, and music as of December 31, 2023 and March 31, 2024 were $ 17.4 billion and $ 17.9 billion.
+Added: Total video and music expense was $ 4.0 billion and $ 4.6 billion in Q1 2023 and Q1 2024 .
Unearned Revenue
1 unchanged sentence
Unearned revenue primarily relates to prepayments of AWS services and Amazon Prime memberships.
−Removed: Our total unearned revenue as of December 31, 2022 was $ 16.1 billion, of which $ 10.9 billion was recognized as revenue during the nine months ended September 30, 2023.
−Removed: Included in “Other long-term liabilities” on our consolidated balance sheets was $ 2.9 billion and $ 2.7 billion of unearned revenue as of December 31, 2022 and September 30, 2023.
+Added: Our total unearned revenue as of December 31, 2023 was $ 20.9 billion, of which $ 6.1 billion was recognized as revenue during the three months ended March 31, 2024.
+Added: Included in “Other long-term liabilities” on our consolidated balance sheets was $ 5.7 billion and $ 6.4 billion of unearned revenue as of December 31, 2023 and March 31, 2024.
Additionally, we have performance obligations, primarily related to AWS, associated with commitments in customer contracts for future services that have not yet been recognized in our consolidated financial statements.
−Removed: For contracts with original terms that exceed one year, those commitments not yet recognized were $ 133.0 billion as of September 30, 2023.
+Added: For contracts with original terms that exceed one year, those commitments not yet recognized were $ 157.7 billion as of March 31, 2024.
The weighted-average remaining life of our long-term contracts is 4.1 years.
However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term.
−Removed: Acquisition Activity
−Removed: On February 22, 2023, we acquired 1Life Healthcare, Inc.
−Removed: (“One Medical”), for cash consideration of approximately $ 3.5 billion, net of cash acquired, to provide health care options for customers.
−Removed: The acquired assets primarily consist of $ 1.3 billion of intangible assets and $ 2.5 billion of goodwill, which is allocated to our North America segment.
−Removed: Pro forma results of operations have not been presented because the effects of the One Medical acquisition were not material to our consolidated results of operations.
−Removed: Acquisition-related costs were expensed as incurred and were not significant.
−Removed: In August 2022, we entered into an agreement to acquire iRobot Corporation, as amended in July 2023, for approximately $ 1.7 billion, including its debt, subject to customary closing conditions.
−Removed: We expect to fund this acquisition with cash on hand.
+Added: Accounting Pronouncements Not Yet Adopted
+Added: In December 2023, the Financial Accounting Standards Board issued an Accounting Standards Update (“ASU”) amending existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation.
+Added: The ASU is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted, and can be applied on either a prospective or retroactive basis.
+Added: We are currently evaluating the ASU to determine its impact on our income tax disclosures.
Note 2 — FINANCIAL INSTRUMENTS
Cash, Cash Equivalents, Restricted Cash, and Marketable Securities
−Removed: As of December 31, 2022 and September 30, 2023, our cash, cash equivalents, restricted cash, and marketable securities primarily consisted of cash, AAA-rated money market funds, U.S.
+Added: As of December 31, 2023 and March 31, 2024, our cash, cash equivalents, restricted cash, and marketable securities primarily consisted of cash, AAA-rated money market funds, U.S.
and foreign government and agency securities, other investment grade securities, and marketable equity securities.
8 unchanged sentences
Other marketable securities were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data.
−Removed: We did not hold significant amounts of marketable securities categorized as Level 3 assets as of December 31, 2022 and September 30, 2023.
The following table summarizes, by major security type, our cash, cash equivalents, restricted cash, and marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in millions):
−Removed: December 31, 2022 September 30, 2023
+Added: December 31, 2023 March 31, 2024
Fair Value Cost or
13 unchanged sentences
___________________
−Removed: (1) The related unrealized gains (losses) recorded in “Other income (expense), net” were $ 1.0 billion and $ 1.2 billion in Q3 2022 and Q3 2023, and $( 11.3 ) billion and $ 1.0 billion for the nine months ended September 30, 2022 and 2023.
+Added: (1) The related unrealized gain (loss) recorded in “Other income (expense), net” was $( 479 ) million and $( 2.1 ) billion in Q1 2023 and Q1 2024.
(2) We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable debt securities primarily as collateral for real estate, amounts due to third-party sellers in certain jurisdictions, debt, and standby and trade letters of credit.
1 unchanged sentence
See “Note 4 — Commitments and Contingencies.”
−Removed: The following table summarizes the remaining contractual maturities of our cash equivalents and marketable debt securities as of September 30, 2023 (in millions):
+Added: The following table summarizes the remaining contractual maturities of our cash equivalents and marketable debt securities as of March 31, 2024 (in millions):
Cost Estimated
7 unchanged sentences
We hold equity warrants giving us the right to acquire stock of other companies.
−Removed: As of December 31, 2022 and September 30, 2023, these warrants had a fair value of $ 2.1 billion and $ 1.9 billion, with gains and losses recognized in “Other income (expense), net” on our consolidated statements of operations.
+Added: As of December 31, 2023 and March 31, 2024, these warrants had a fair value of $ 2.2 billion and $ 2.1 billion, with gains and losses recognized in “Other income (expense), net” on our consolidated statements of operations.
These warrants are classified as Level 2 and 3 assets.
−Removed: As of December 31, 2022 and September 30, 2023, equity investments not accounted for under the equity-method and without readily determinable fair values had a carrying value of $ 715 million and $ 753 million, with adjustments recognized in “Other income (expense), net” on our consolidated statements of operations.
−Removed: Additionally, in September 2023 we invested in a $ 1.25 billion note from Anthropic, PBC, which is convertible to equity.
−Removed: We have an agreement that expires in Q1 2024 to invest up to an additional $ 2.75 billion in a second convertible note.
−Removed: We also have a commercial arrangement primarily for the provision of AWS cloud services and chips.
+Added: As of December 31, 2023 and March 31, 2024, equity investments not accounted for under the equity-method and without readily determinable fair values had a carrying value of $ 754 million and $ 801 million, with adjustments recognized in “Other income (expense), net” on our consolidated statements of operations.
+Added: In Q3 2023, we invested in a $ 1.25 billion note from Anthropic, PBC, which is convertible to equity.
+Added: In Q1 2024, we invested $ 2.75 billion in a second convertible note.
+Added: The notes are classified as available for sale and reported at fair value with unrealized gains and losses included in “Accumulated other comprehensive income (loss).” The notes are classified as Level 3 assets.
+Added: We also have a commercial arrangement primarily for the provision of AWS cloud services, which includes the use of AWS chips.
All non-marketable investments are recorded within “Other assets” on our consolidated balance sheets.
1 unchanged sentence
The following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows (in millions):
−Removed: December 31, 2022 September 30, 2023
+Added: December 31, 2023 March 31, 2024
Cash and cash equivalents $ 73,387 $ 72,852
3 unchanged sentences
Note 3 — LEASES
−Removed: We have entered into non-cancellable operating and finance leases for fulfillment network, office, data center, and physical store facilities as well as server and networking equipment, aircraft, and vehicles.
−Removed: Gross assets acquired under finance leases, including those where title transfers at the end of the lease, are recorded in “ Property and equipment, net ” and were $ 68.0 billion and $ 62.7 billion as of December 31, 2022 and September 30, 2023.
−Removed: Accumulated amortization associated with finance leases was $ 45.2 billion and $ 44.0 billion as of December 31, 2022 and September 30, 2023.
+Added: We have entered into non-cancellable operating and finance leases for fulfillment network, data center, office, and physical store facilities as well as server and networking equipment, aircraft, and vehicles.
+Added: Gross assets acquired under finance leases, including those where title transfers at the end of the lease, are recorded in “ Property and equipment, net ” and were $ 62.5 billion and $ 60.9 billion as of December 31, 2023 and March 31, 2024.
+Added: Accumulated amortization associated with finance leases was $ 44.7 billion and $ 44.0 billion as of December 31, 2023 and March 31, 2024.
Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2022 2023 2022 2023
+Added: Three Months Ended March 31,
Operating lease cost $ 2,512 $ 2,829
6 unchanged sentences
Other information about lease amounts recognized in our consolidated financial statements is as follows:
−Removed: December 31, 2022 September 30, 2023
+Added: December 31, 2023 March 31, 2024
Weighted-average remaining lease term – operating leases 11.3 years 11.2 years
10 unchanged sentences
Total long-term lease liabilities $ 67,220 $ 10,077 $ 77,297
−Removed: September 30, 2023
+Added: March 31, 2024
Operating Leases Finance Leases Total
5 unchanged sentences
Note 4 — COMMITMENTS AND CONTINGENCIES
−Removed: The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally cancellable, as of September 30, 2023 (in millions):
−Removed: Three Months Ended December 31, Year Ended December 31,
+Added: The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally cancellable, as of March 31, 2024 (in millions):
+Added: Nine Months Ended December 31, Year Ended December 31,
2024 2025 2026 2027 2028 Thereafter Total
9 unchanged sentences
(1) Includes non-cancellable financing obligations for fulfillment network and data center facilities.
−Removed: Excluding interest, current financing obligations of $ 266 million and $ 271 million are recorded within “Accrued expenses and other” and $ 6.7 billion and $ 6.6 billion are recorded within “Other long-term liabilities” as of December 31, 2022 and September 30, 2023.
−Removed: The weighted-average remaining term of the financing obligations was 17.9 years and 17.2 years and the weighted-average imputed interest rate was 3.1 % as of December 31, 2022 and September 30, 2023.
+Added: Excluding interest, current financing obligations of $ 271 million and $ 269 million are recorded within “Accrued expenses and other” and $ 6.6 billion and $ 6.5 billion are recorded within “Other long-term liabilities” as of December 31, 2023 and March 31, 2024.
+Added: The weighted-average remaining term of the financing obligations was 17.0 years and 16.7 years and the weighted-average imputed interest rate was 3.1 % as of December 31, 2023 and March 31, 2024.
(2) Includes unconditional purchase obligations related to long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets, and certain products offered in our Whole Foods Market stores.
1 unchanged sentence
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.
+Added: Renewable energy agreements based on actual generation without a fixed or minimum volume commitment are not included.
+Added: These agreements also provide the right to receive renewable energy certificates for no additional consideration.
(3) Includes asset retirement obligations, liabilities associated with digital media content agreements with initial terms greater than one year, and the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that are under construction.
−Removed: (4) Excludes approximately $ 5.0 billion of accrued tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any.
+Added: Excludes approximately $ 5.5 billion of income tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any.
Other Contingencies
We are disputing claims and denials of refunds or credits, and monitoring or evaluating potential claims, related to various non-income taxes (such as sales, value added, consumption, service, and similar taxes), including in jurisdictions in which we already collect and remit these taxes.
−Removed: These non-income tax controversies typically relate to (i) the taxability of products and services, including cross-border intercompany transactions, (ii) collection and withholding on transactions with third parties, and (iii) the adequacy of compliance with reporting obligations, including evolving documentation requirements.
+Added: These non-income tax controversies typically include (i) the taxability of products and services, including cross-border intercompany transactions, (ii) collection and withholding on transactions with third parties, including as a result of evolving requirements imposed on marketplaces with respect to third-party sellers, and (iii) the adequacy of compliance with reporting obligations, including evolving documentation requirements.
Due to the inherent complexity and uncertainty of these matters and the judicial and regulatory processes in certain jurisdictions, the final outcome of any such controversies may be materially different from our expectations.
Legal Proceedings
−Removed: The Company is involved from time to time in claims, proceedings, and litigation, including the matters described in Item 8 of Part II, “Financial Statements and Supplementary Data — Note 7 — Commitments and Contingencies — Legal Proceedings” of our 2022 Annual Report on Form 10-K and in Item 1 of Part I, “Financial Statements — Note 4 — Commitments and Contingencies — Legal Proceedings” of our Quarterly Reports on Form 10-Q for the periods ended March 31, 2023 and June 30, 2023, as supplemented by the following:
−Removed: Beginning in June 2019 with Wilcosky v.
−Removed: Amazon.com, Inc., now pending in the United States District Court for the Northern District of Illinois (“N.D.
−Removed: Ill.”), private litigants have filed a number of cases in U.S.
−Removed: federal and state courts, including Hogan v.
−Removed: Amazon.com, Inc.
−Removed: Ill.), alleging, among other things, that Amazon’s collection, storage, use, retention, and protection of biometric identifiers violated the Illinois Biometric Information Privacy Act.
−Removed: The complaints allege purported classes of Illinois residents who had biometric identifiers collected through Amazon products or services, including Amazon Photos, Alexa, AWS cloud services, Ring, Amazon Connect, Amazon’s Flex driver app, and Amazon’s virtual try-on technology.
−Removed: The complaints seek certification as class actions, unspecified amounts of damages, injunctive relief, attorneys’ fees, costs, and interest.
−Removed: We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters.
−Removed: Beginning in March 2020, with Frame-Wilson v.
−Removed: Amazon.com, Inc.
−Removed: filed in the United States District Court for the Western District of Washington (“W.D.
−Removed: Wash.”), private litigants have filed a number of cases in the U.S.
−Removed: and Canada alleging, among other things, price fixing arrangements between Amazon.com, Inc.
−Removed: and vendors and third-party sellers in Amazon’s stores, monopolization and attempted monopolization, and consumer protection and unjust enrichment claims.
−Removed: Attorneys General for the District of Columbia and California brought similar suits in May 2021 and September 2022 in the Superior Court of the District of Columbia and the California Superior Court for the County of San Francisco, respectively.
−Removed: Some of the private cases include allegations of several distinct purported classes, including consumers who purchased a product through Amazon’s stores and consumers who purchased a product offered by Amazon through another e-commerce retailer.
−Removed: The complaints seek billions of dollars of alleged damages, treble damages, punitive damages, injunctive relief, civil penalties, attorneys’ fees, and costs.
−Removed: The Federal Trade Commission (“FTC”) and a number of state Attorneys General filed a similar lawsuit in September 2023 in the W.D.
−Removed: alleging violations of federal antitrust and state antitrust and consumer protection laws.
−Removed: That complaint alleges, among other things, that Amazon has a monopoly in markets for online superstores and marketplace services, and unlawfully maintains those monopolies through anticompetitive practices relating to our pricing policies, advertising practices, the structure of Prime, and promotion of our own products on our website.
−Removed: The complaint seeks injunctive and structural relief, an unspecified amount of damages, and costs.
−Removed: Amazon’s motions to dismiss were granted in part and denied in part in Frame-Wilson in March 2022 and March 2023, De Coster v.
−Removed: Amazon.com, Inc.
−Removed: Wash.) in January 2023, and the California Attorney General’s lawsuit in March 2023.
−Removed: All three courts dismissed claims alleging that Amazon’s pricing policies are inherently illegal and denied dismissal of claims alleging that Amazon’s pricing policies are an unlawful restraint of trade.
−Removed: In March 2022, the DC Superior Court dismissed the DC Attorney General’s lawsuit in its entirety;
−Removed: the dismissal is under appeal.
−Removed: We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters.
+Added: The Company is involved from time to time in claims, proceedings, and litigation, including the matters described in Item 8 of Part II, “Financial Statements and Supplementary Data — Note 7 — Commitments and Contingencies — Legal Proceedings” of our 2023 Annual Report on Form 10-K, as supplemented by the following:
+Added: In May 2018, Rensselaer Polytechnic Institute and CF Dynamic Advances LLC filed a complaint against Amazon.com, Inc.
+Added: in the United States District Court for the Northern District of New York.
+Added: The complaint alleged, among other things, that “Alexa Voice Software and Alexa enabled devices” infringe U.S.
+Added: 7,177,798, entitled “Natural Language Interface Using Constrained Intermediate Dictionary of Results.” The complaint sought an injunction, an unspecified amount of damages, enhanced damages , an ongoing royalty, interest, attorneys’ fees, and costs.
+Added: In March 2023, the plaintiffs alleged in
+Added: their damages report that in the event of a finding of liability Amazon could be subject to $ 140 million to $ 267 million in damages.
+Added: In March 2024, the district court granted summary judgment ruling that the patent is invalid and dismissed the case.
+Added: In April 2024, the plaintiffs filed a notice of appeal.
+Added: We dispute the allegations of wrongdoing and will continue to defend ourselves vigorously in this matter.
+Added: In December 2018, Kove IO, Inc.
+Added: filed a complaint against Amazon Web Services, Inc.
+Added: in the United States District Court for the Northern District of Illinois.
+Added: The complaint alleged, among other things, that Amazon S3 and DynamoDB infringe U.S.
+Added: 7,814,170 and 7,103,640, each entitled “Network Distributed Tracking Wire Transfer Protocol”;
+Added: and 7,233,978, entitled “Method and Apparatus for Managing Location Information in a Network Separate from the Data to Which the Location Information Pertains.” The complaint sought an unspecified amount of damages, enhanced damages, attorneys’ fees, costs, interest, and injunctive relief.
+Added: In April 2024, a jury found that Amazon infringed the asserted patents and awarded Kove $ 525 million in damages.
+Added: We disagree with the jury’s findings, intend to appeal the jury verdict, and will continue to defend ourselves vigorously in this matter.
In addition, we are regularly subject to claims, litigation, and other proceedings, including potential regulatory proceedings, involving patent and other intellectual property matters, taxes, labor and employment, competition and antitrust, privacy and data protection, consumer protection, commercial disputes, goods and services offered by us and by third parties, and other matters.
2 unchanged sentences
For the matters we disclose that do not include an estimate of the amount of loss or range of losses, such an estimate is not possible or is immaterial, and we may be unable to estimate the possible loss or range of losses that could potentially result from the application of non-monetary remedies.
−Removed: Until the final resolution of such matters, if any of our estimates and assumptions change or prove to have been incorrect, we may experience losses in excess of the
−Removed: amounts recorded, which could have a material effect on our business, consolidated financial position, results of operations, or cash flows.
+Added: Until the final resolution of such matters, if any of our estimates and assumptions change or prove to have been incorrect, we may experience losses in excess of the amounts recorded, which could have a material effect on our business, consolidated financial position, results of operations, or cash flows.
See also “Note 7 — Income Taxes.”
Note 5 — DEBT
−Removed: As of September 30, 2023, we had $ 66.5 billion of unsecured senior notes outstanding (the “Notes”) and $ 972 million of borrowings under our credit facility.
+Added: As of March 31, 2024, we had $ 66.5 billion of unsecured senior notes outstanding (the “Notes”) and $ 352 million of borrowings under our secured revolving credit facility.
Our total long-term debt obligations are as follows (in millions):
−Removed: Maturities (1) Stated Interest Rates Effective Interest Rates December 31, 2022 September 30, 2023
+Added: Maturities (1) Stated Interest Rates Effective Interest Rates December 31, 2023 March 31, 2024
2014 Notes issuance of $ 6.0 billion
25 unchanged sentences
___________________
−Removed: (1) The weighted-average remaining lives of the 2014, 2017, 2020, 2021, April 2022, and December 2022 Notes were 11.8 , 14.4 , 17.8 , 13.3 , 12.5 , and 5.1 years as of September 30, 2023.
−Removed: The combined weighted-average remaining life of the Notes was 12.9 years as of September 30, 2023.
+Added: (1) The weighted-average remaining lives of the 2014, 2017, 2020, 2021, April 2022, and December 2022 Notes were 11.3 , 13.9 , 17.3 , 12.8 , 12.0 , and 4.6 years as of March 31, 2024.
+Added: The combined weighted-average remaining life of the Notes was 12.4 years as of March 31, 2024.
Interest on the Notes is payable semi-annually in arrears.
1 unchanged sentence
We are not subject to any financial covenants under the Notes.
−Removed: The estimated fair value of the Notes was approximately $ 61.4 billion and $ 56.7 billion as of December 31, 2022 and September 30, 2023, which is based on quoted prices for our debt as of those dates.
−Removed: In January 2023, we entered into an $ 8.0 billion unsecured 364-day term loan with a syndicate of lenders (the “Term Loan”), which matures in January 2024 and bears interest at the Secured Overnight Financing Rate specified in the Term Loan plus 0.75 %.
−Removed: If we exercise our option to extend the Term Loan’s maturity to January 2025, the interest rate spread will increase from 0.75 % to 1.05 %.
−Removed: As of September 30, 2023, $ 5.0 billion of the Term Loan was outstanding, which was included in “Accrued expenses and other” on our consolidated balance sheets and had an interest rate of 6.2 %.
−Removed: We have a $ 1.5 billion secured revolving credit facility with a lender that is secured by certain seller receivables, which we may from time to time increase in the future subject to lender approval (the “Credit Facility”).
+Added: The estimated fair value of the Notes was approximately $ 60.6 billion and $ 59.4 billion as of December 31, 2023 and March 31, 2024, which is based on quoted prices for our debt as of those dates.
+Added: We have a $ 352 million secured revolving credit facility with a lender that is secured by certain seller receivables, which we decreased from $ 1.5 billion to $ 352 million in March 2024 and we may from time to time increase in the future subject to lender approval (the “Credit Facility”).
The Credit Facility is available until August 2025, bears interest based on the daily Secured Overnight Financing Rate plus 1.25 %, and has a commitment fee of up to 0.45 % on the undrawn portion.
−Removed: There were $ 1.0 billion and $ 972 million of borrowings outstanding under the Credit Facility as of December 31, 2022 and September 30, 2023, which had an interest rate of 5.6 % and 6.6 %, respectively.
−Removed: As of December 31, 2022 and September 30, 2023, we have pledged $ 1.2 billion and $ 1.1 billion of our cash and seller receivables as collateral for debt related to our Credit Facility.
−Removed: The estimated fair value of the Credit Facility, which is based on Level 2 inputs, approximated its carrying value as of December 31, 2022 and September 30, 2023.
+Added: There were $ 682 million and $ 352 million of borrowings outstanding under the Credit Facility as of December 31, 2023 and March 31, 2024, which had an interest rate of 6.6 %.
+Added: We reclassified all of the $ 352 million outstanding as of March 31, 2024 to be included with the current portion of long-term debt within “Accrued expenses and other” on our consolidated balance sheets.
+Added: As of December 31, 2023 and March 31, 2024, we have pledged $ 806 million and $ 466 million of our cash and seller receivables as collateral for debt related to our Credit Facility.
+Added: The estimated fair value of the Credit Facility, which is based on Level 2 inputs, approximated its carrying value as of December 31, 2023 and March 31, 2024.
+Added: In January 2023, we entered into an $ 8.0 billion unsecured 364-day term loan with a syndicate of lenders (the “Term Loan”), maturing in January 2024 and bearing interest at the Secured Overnight Financing Rate specified in the Term Loan plus 0.75 %.
+Added: The Term Loan was classified as short-term debt and included within “Accrued expenses and other” on our consolidated balance sheets.
+Added: As of December 31, 2023, the entire amount of the Term Loan had been repaid.
Dollar and Euro commercial paper programs (the “Commercial Paper Programs”) under which we may from time to time issue unsecured commercial paper up to a total of $ 20.0 billion (including up to € 3.0 billion) at the date of issue, with individual maturities that may vary but will not exceed 397 days from the date of issue.
−Removed: There were $ 6.8 billion and $ 567 million of borrowings outstanding under the Commercial Paper Programs as of December 31, 2022 and September 30, 2023, which were included in “Accrued expenses and other” on our consolidated balance sheets and had a weighted-average effective interest rate, including issuance costs, of 4.5 % and 5.1 %, respectively.
+Added: There were no borrowings outstanding under the Commercial Paper Programs as of December 31, 2023 and March 31, 2024.
We use the net proceeds from the issuance of commercial paper for general corporate purposes.
−Removed: We have a $ 10.0 billion unsecured revolving credit facility with a syndicate of lenders (the “Credit Agreement”), with a term that extends to March 2025.
−Removed: It may be extended for up to three additional one-year terms if approved by the lenders.
−Removed: interest rate applicable to outstanding balances under the Credit Agreement is the applicable benchmark rate specified in the Credit Agreement plus 0.45 %, with a commitment fee of 0.03 % on the undrawn portion of the credit facility.
−Removed: There were no borrowings outstanding under the Credit Agreement as of December 31, 2022 and September 30, 2023.
−Removed: We have a $ 10.0 billion unsecured 364-day revolving credit facility with a syndicate of lenders (the “Short-Term Credit Agreement”), which matures in November 2023 and may be extended for one additional period of 364 days if approved by the lenders.
+Added: We have a $ 15.0 billion unsecured revolving credit facility with a syndicate of lenders (the “Credit Agreement”), with a term that extends to November 2028 and may be extended for one or more additional one-year terms if approved by the lenders.
+Added: The interest rate applicable to outstanding balances under the Credit Agreement is the applicable benchmark rate specified in the Credit Agreement plus 0.45 %, with a commitment fee of 0.03 % on the undrawn portion of the credit facility.
+Added: There were no borrowings outstanding under the Credit Agreement as of December 31, 2023 and March 31, 2024.
+Added: We have a $ 5.0 billion unsecured 364-day revolving credit facility with a syndicate of lenders (the “Short-Term Credit Agreement”), which matures in October 2024 and may be extended for one additional period of 364 days if approved by the lenders.
The interest rate applicable to outstanding balances under the Short-Term Credit Agreement is the Secured Overnight Financing Rate specified in the Short-Term Credit Agreement plus 0.45 %, with a commitment fee of 0.03 % on the undrawn portion.
−Removed: There were no borrowings outstanding under the Short-Term Credit Agreement as of December 31, 2022 and September 30, 2023.
+Added: There were no borrowings outstanding under the Short-Term Credit Agreement as of December 31, 2023 and March 31, 2024.
We also utilize other short-term credit facilities for working capital purposes.
−Removed: There were $ 1.2 billion and $ 166 million of borrowings outstanding under these facilities as of December 31, 2022 and September 30, 2023, which were included in “Accrued expenses and other” on our consolidated balance sheets.
−Removed: In addition, we had $ 7.8 billion of unused letters of credit as of September 30, 2023.
+Added: There were $ 147 million and $ 50 million of borrowings outstanding under these facilities as of December 31, 2023 and March 31, 2024, which were included in “Accrued expenses and other” on our consolidated balance sheets.
+Added: In addition, we had $ 8.5 billion of unused letters of credit as of March 31, 2024.
Note 6 — STOCKHOLDERS’ EQUITY
Stock Repurchase Activity
−Removed: In March 2022, the Board of Directors authorized a program to repurchase up to $ 10.0 billion of our common stock, with no fixed expiration, which replaced the previous $ 5.0 billion stock repurchase authorization, approved by the Board of Directors in February 2016.
−Removed: We repurchased 46.2 million shares of our common stock for $ 6.0 billion during the nine months ended September 30, 2022 under these programs.
−Removed: There were no repurchases of our common stock during the nine months ended September 30, 2023.
−Removed: As of September 30, 2023, we have $ 6.1 billion remaining under the repurchase program.
+Added: In March 2022, the Board of Directors authorized a program to repurchase up to $ 10.0 billion of our common stock, with no fixed expiration.
+Added: There were no repurchases of our common stock during the three months ended March 31, 2023 or 2024.
+Added: As of March 31, 2024, we have $ 6.1 billion remaining under the repurchase program.
+Added: Stock Award Plans
+Added: Employees vest in restricted stock unit awards over the corresponding service term, generally between two and five years .
+Added: The majority of restricted stock unit awards are granted at the date of hire or in Q2 as part of the annual compensation review and primarily vest semi-annually in Q2 and Q4 of the relevant compensation year.
Stock Award Activity
−Removed: Common shares outstanding plus shares underlying outstanding stock awards totaled 10.6 billion and 10.8 billion as of December 31, 2022 and September 30, 2023.
+Added: Common shares outstanding plus shares underlying outstanding stock awards totaled 10.8 billion as of December 31, 2023 and March 31, 2024.
These totals include all vested and unvested stock awards outstanding, including those awards we estimate will be forfeited.
1 unchanged sentence
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2022 2023 2022 2023
Cost of sales $ 165 $ 174
4 unchanged sentences
Total stock-based compensation expense $ 4,748 $ 4,961
−Removed: The following table summarizes our restricted stock unit activity for the nine months ended September 30, 2023 (in millions):
+Added: The following table summarizes our restricted stock unit activity for the three months ended March 31, 2024 (in millions):
Number of Units Weighted-Average
3 unchanged sentences
Units forfeited ( 11.6 ) 126
−Removed: Outstanding as of September 30, 2023 462.1 128
−Removed: Scheduled vesting for outstanding restricted stock units as of September 30, 2023, is as follows (in millions):
−Removed: Three Months Ended December 31, Year Ended December 31,
+Added: Outstanding as of March 31, 2024 384.9 126
+Added: Scheduled vesting for outstanding restricted stock units as of March 31, 2024, is as follows (in millions):
+Added: Nine Months Ended December 31, Year Ended December 31,
2024 2025 2026 2027 2028 Thereafter Total
Scheduled vesting — restricted stock units 195.0 122.0 50.1 14.0 2.1 1.7 384.9
−Removed: As of September 30, 2023, there was $ 23.3 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements.
+Added: As of March 31, 2024, there was $ 14.7 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements.
This compensation is recognized on an accelerated basis with more than half of the compensation expected to be expensed in the next twelve months, and has a remaining weighted-average recognition period of 0.9 years.
−Removed: The estimated forfeiture rate as of December 31, 2022 and September 30, 2023 was 26.5 % and 26.3 %.
−Removed: Changes in our estimates and assumptions relating to forfeitures may cause us to realize material changes in stock-based compensation expense in the future.
+Added: The estimated forfeiture rate as of December 31, 2023 and March 31, 2024 was 26.1 %.
Changes in Stockholders’ Equity
1 unchanged sentence
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2022 2023 2022 2023
Total beginning stockholders’ equity $ 146,043 $ 201,875
−Removed: Beginning common stock 107 108 106 108
−Removed: Stock-based compensation and issuance of employee benefit plan stock — — 1 —
−Removed: Ending common stock 107 108 107 108
−Removed: Beginning treasury stock ( 7,837 ) ( 7,837 ) ( 1,837 ) ( 7,837 )
−Removed: Common stock repurchased — — ( 6,000 ) —
−Removed: Ending treasury stock ( 7,837 ) ( 7,837 ) ( 7,837 ) ( 7,837 )
+Added: Beginning and ending common stock 108 109
+Added: Beginning and ending treasury stock ( 7,837 ) ( 7,837 )
Beginning additional paid-in capital 75,066 99,025
5 unchanged sentences
Beginning retained earnings 83,193 113,618
−Removed: Net income (loss) 2,872 9,879 ( 3,000 ) 19,801
+Added: Net income 3,172 10,431
Ending retained earnings 86,365 124,049
7 unchanged sentences
In addition, we record valuation allowances against deferred tax assets when there is uncertainty about our ability to generate future income in relevant jurisdictions.
−Removed: For 2023, we estimate that our effective tax rate will be favorably impacted by the foreign income deduction and U.S.
−Removed: federal research and development credit and adversely affected by state income taxes.
+Added: For 2024, we estimate that our effective tax rate will be favorably impacted by the U.S.
+Added: federal research and development credit and foreign income deduction and adversely affected by state income taxes.
In addition, valuation gains and losses from our equity investment in Rivian impact our pre-tax income and may cause variability in our effective tax rate.
−Removed: Our income tax benefit for the nine months ended September 30, 2022 was $ 2.0 billion, which included $ 3.3 billion of net discrete tax benefits primarily attributable to a valuation loss related to our equity investment in Rivian.
−Removed: Our income tax provision for the nine months ended September 30, 2023 was $ 4.1 billion, which included $ 175 million of net discrete tax expense, primarily consisting of discrete tax expense related to shortfalls from stock-based compensation and approximately $ 600 million of tax benefit resulting from a change in the estimated qualifying expenditures associated with our 2022 U.S.
−Removed: federal R&D credit.
−Removed: Cash paid for income taxes, net of refunds was $ 742 million and $ 2.6 billion in Q3 2022 and Q3 2023, and $ 4.3 billion and $ 7.0 billion for the nine months ended September 30, 2022 and 2023.
−Removed: As of December 31, 2022 and September 30, 2023, tax contingencies were approximately $ 4.0 billion and $ 5.0 billion.
+Added: Our income tax provision for the three months ended March 31, 2023 was $ 948 million, which included $ 48 million of net discrete tax expense.
+Added: Our income tax provision for the three months ended March 31, 2024 was $ 2.5 billion, which included $ 558 million of net discrete tax benefits.
+Added: Cash paid for income taxes, net of refunds was $ 619 million and $ 458 million in Q1 2023 and Q1 2024.
+Added: As of December 31, 2023 and March 31, 2024, income tax contingencies were approximately $ 5.2 billion and $ 5.5 billion.
Changes in tax laws, regulations, administrative practices, principles, and interpretations may impact our tax contingencies.
−Removed: Due to various factors, including the inherent complexities and uncertainties of the judicial, administrative, and regulatory processes in certain jurisdictions, the timing of the resolution of income tax controversies is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ from the amounts accrued.
+Added: Due to various factors, including the inherent complexities and uncertainties of the judicial, administrative, and regulatory processes in certain jurisdictions, the timing of the resolution of income tax controversies is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ from the amounts
It is reasonably possible that within the next twelve months we will receive additional assessments by various tax authorities or possibly reach resolution of income tax controversies in one or more jurisdictions.
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We will need to remit taxes related to this matter until it is resolved, which payments could be significant in the aggregate.
−Removed: We believe the ITA’s position is without merit, we are defending our position vigorously in the Indian courts, and we expect to recoup taxes paid.
+Added: We believe the ITA’s position is without merit, we are defending our position vigorously, and we expect to recoup taxes paid.
If this matter is adversely resolved, we could recognize significant additional tax expense, including for taxes previously paid.
−Removed: 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.
−Removed: On October 4, 2017, the European Commission announced its decision that determinations by the tax authorities in Luxembourg did not comply with European Union rules on state aid.
−Removed: Based on that decision, the European Commission announced an estimated recovery amount of approximately € 250 million, plus interest, for the period May 2006 through June 2014, and ordered Luxembourg tax authorities to calculate the actual amount of additional taxes subject to recovery.
−Removed: Luxembourg computed an initial recovery amount, consistent with the European Commission’s decision, which we deposited into escrow in March 2018, subject to adjustment pending conclusion of all appeals.
−Removed: In December 2017, Luxembourg appealed the European Commission’s decision.
−Removed: In May 2018, we appealed.
−Removed: On May 12, 2021, the European Union General Court annulled the European Commission’s state aid decision.
−Removed: In July 2021, the European Commission appealed the decision to the European Court of Justice.
−Removed: We will continue to defend ourselves vigorously in this matter.
Note 8 — SEGMENT INFORMATION
4 unchanged sentences
and are included in our North America and AWS segments.
−Removed: The majority of infrastructure costs recorded in “Technology and infrastructure” are allocated to the AWS
−Removed: segment based on usage.
+Added: The majority of infrastructure costs recorded in “Technology and infrastructure” are allocated to the AWS segment based on usage.
There are no internal revenue transactions between our reportable segments.
−Removed: These segments reflect the way our chief operating decision maker evaluates the Company’s business performance and manages its operations.
+Added: Our chief operating decision maker (“CODM”) regularly reviews consolidated net sales, consolidated operating expenses, and consolidated operating income (loss) by segment.
+Added: Amounts included in consolidated operating expenses include “Cost of sales,” “Fulfillment,” “Technology and infrastructure,” “Sales and marketing,” “General and administrative,” and “Other operating expense (income), net.” Our CODM manages our business by reviewing annual forecasts and consolidated results by segment on a quarterly basis.
North America
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The AWS segment consists of amounts earned from global sales of compute, storage, database, and other services for start-ups, enterprises, government agencies, and academic institutions.
−Removed: Information on reportable segments and reconciliation to consolidated net income (loss) is as follows (in millions):
+Added: Information on reportable segments and reconciliation to consolidated net income is as follows (in millions):
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2022 2023 2022 2023
North America
1 unchanged sentence
Operating expenses 75,983 81,358
−Removed: Operating income (loss) $ ( 412 ) $ 4,307 $ ( 2,607 ) $ 8,416
+Added: Operating income $ 898 $ 4,983
International
1 unchanged sentence
Operating expenses 30,370 31,032
−Removed: Operating loss $ ( 2,466 ) $ ( 95 ) $ ( 5,518 ) $ ( 2,237 )
+Added: Operating income (loss) $ ( 1,247 ) $ 903
Net sales $ 21,354 $ 25,037
4 unchanged sentences
Operating income 4,774 15,307
−Removed: Total non-operating income (expense) 419 1,001 ( 14,485 ) 228
−Removed: Benefit (provision) for income taxes ( 69 ) ( 2,306 ) 1,990 ( 4,058 )
+Added: Total non-operating expense ( 655 ) ( 2,324 )
+Added: Provision for income taxes ( 948 ) ( 2,467 )
Equity-method investment activity, net of tax 1 ( 85 )
−Removed: Net income (loss) $ 2,872 $ 9,879 $ ( 3,000 ) $ 19,801
+Added: Net income $ 3,172 $ 10,431
Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2022 2023 2022 2023
Online stores (1) $ 51,096 $ 54,670
1 unchanged sentence
Third-party seller services (3) 29,820 34,596
−Removed: Subscription services (4) 8,903 10,170 26,029 29,721
Advertising services (4) 9,509 11,824
+Added: Subscription services (5) 9,657 10,722
AWS 21,354 25,037
9 unchanged sentences
(3) Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.
−Removed: (4) Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services.
(4) Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.
−Removed: (6) Includes sales related to various other offerings, such as certain licensing and distribution of video content, health care services, and shipping services, and our co-branded credit card agreements.
+Added: (5) Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services.
+Added: (6) Includes sales related to various other offerings, such as health care services, certain licensing and distribution of video content, and shipping services, and our co-branded credit card agreements.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.