4 unchanged sentences
Three Months Ended
−Removed: March 31, Twelve Months Ended
+Added: June 30, Six Months Ended
+Added: June 30, Twelve Months Ended
2023 2024 2023 2024 2023 2024
23 unchanged sentences
FINANCING ACTIVITIES:
−Removed: Common stock repurchased — — ( 3,334 ) —
Proceeds from short-term debt, and other 4,399 525 17,179 863 40,124 1,813
13 unchanged sentences
Three Months Ended
+Added: June 30, Six Months Ended
+Added: 2023 2024 2023 2024
Net product sales $ 59,032 $ 61,569 $ 116,013 $ 122,484
13 unchanged sentences
Other income (expense), net 61 ( 18 ) ( 382 ) ( 2,691 )
−Removed: Total non-operating expense ( 655 ) ( 2,324 )
+Added: Total non-operating income (expense) ( 118 ) 573 ( 773 ) ( 1,751 )
Income before income taxes 7,563 15,245 11,682 28,228
12 unchanged sentences
Three Months Ended
+Added: June 30, Six Months Ended
+Added: 2023 2024 2023 2024
Net income $ 6,750 $ 13,485 $ 9,922 $ 23,916
4 unchanged sentences
Change in net unrealized gains (losses), net of tax of $( 5 ), $( 69 ), $( 34 ), and $( 227 )
−Removed: reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $( 10 ) and $ 0
+Added: 17 241 112 777
+Added: reclassification adjustment for losses included in “Other income (expense), net,” net of tax of $( 5 ), $( 1 ), $( 15 ), and $( 1 )
Net change 29 244 157 781
Other, net of tax of $ 0 , $( 1 ), $ 0 , and $( 2 )
+Added: — ( 2 ) — ( 1 )
Total other comprehensive income (loss) 293 ( 395 ) 807 ( 953 )
4 unchanged sentences
(in millions, except per share data)
−Removed: December 31, 2023 March 31, 2024
+Added: December 31, 2023 June 30, 2024
Current assets:
56 unchanged sentences
The longer useful lives are due to continuous improvements in our hardware, software, and data center designs.
−Removed: 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.
+Added: The effect of this change in estimate for Q2 2024, based on servers that were included in “Property and equipment, net” as of March 31, 2024 and those acquired during the three months ended June 30, 2024, was a reduction in depreciation and amortization expense of $ 786 million and a benefit to net income of $ 601 million, or $ 0.06 per basic share and $ 0.06 per diluted share.
+Added: The effect of this change in estimate for the six months ended June 30, 2024, based on servers that were included in “Property and equipment, net” as of December 31, 2023 and those acquired during the six months ended June 30, 2024, was a reduction in depreciation and amortization expense of $ 1.7 billion and a benefit to net income of $ 1.3 billion, or $ 0.12 per basic share and $ 0.12 per diluted share.
Supplemental Cash Flow Information
1 unchanged sentence
Three Months Ended
−Removed: March 31, Twelve Months Ended
+Added: June 30, Six Months Ended
+Added: June 30, Twelve Months Ended
2023 2024 2023 2024 2023 2024
16 unchanged sentences
Three Months Ended
+Added: June 30, Six Months Ended
+Added: 2023 2024 2023 2024
Shares used in computation of basic earnings per share 10,285 10,447 10,268 10,420
4 unchanged sentences
Three Months Ended
+Added: June 30, Six Months Ended
+Added: 2023 2024 2023 2024
Marketable equity securities valuation gains (losses) $ 299 $ 443 $ ( 181 ) $ ( 1,683 )
4 unchanged sentences
Total other income (expense), net 61 ( 18 ) ( 382 ) ( 2,691 )
−Removed: 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.
−Removed: 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: Included in “Other income (expense), net” is a marketable equity securities valuation gain (loss) of $ 187 million and $ 391 million in Q2 2023 and Q2 2024, and $( 280 ) million and $( 1.6 ) billion for the six months ended June 30, 2023 and 2024, from our equity investment in Rivian Automotive, Inc.
+Added: As of June 30, 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.
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.
−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 $ 3.7 billion and $ 1.7 billion as of December 31, 2023 and March 31, 2024.
+Added: We elected the fair value option to account for our equity investment in Rivian, which is included
+Added: in “Marketable securities” on our consolidated balance sheets, and had a fair value of $ 3.7 billion and $ 2.1 billion as of December 31, 2023 and June 30, 2024.
Required summarized financial information of Rivian as disclosed in its most recent SEC filings is as follows (in millions):
−Removed: Twelve Months Ended December 31,
+Added: Three Months Ended March 31,
Revenues $ 661 $ 1,204
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 $ 3.0 billion and $ 2.6 billion as of December 31, 2023 and March 31, 2024.
+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 June 30, 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, 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.
+Added: As of December 31, 2023 and June 30, 2024, customer receivables, net, were $ 34.1 billion and $ 33.1 billion, vendor receivables, net, were $ 8.5 billion and $ 7.8 billion, seller receivables, net, were $ 1.0 billion and $ 0.3 billion, and other receivables, net, were $ 3.3 billion and $ 3.0 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 $ 5.4 billion and $ 5.6 billion as of December 31, 2023 and March 31, 2024.
+Added: Prepaid expenses and other current assets were $ 5.4 billion and $ 5.9 billion as of December 31, 2023 and June 30, 2024.
We estimate losses on receivables based on expected losses, including our historical experience of actual losses.
−Removed: The allowance for doubtful accounts was $ 1.7 billion as of December 31, 2023 and March 31, 2024.
+Added: The allowance for doubtful accounts was $ 1.7 billion as of December 31, 2023 and June 30, 2024.
Digital Video and Music Content
−Removed: 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.
−Removed: Total video and music expense was $ 4.0 billion and $ 4.6 billion in Q1 2023 and Q1 2024 .
+Added: The total capitalized costs of video, which is primarily released content, and music as of December 31, 2023 and June 30, 2024 were $ 17.4 billion and $ 18.4 billion.
+Added: Total video and music expense was $ 4.4 billion and $ 4.6 billion in Q2 2023 and Q2 2024, and $ 8.4 billion and $ 9.2 billion for the six months ended June 30, 2023 and 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, 2023 was $ 20.9 billion, of which $ 6.1 billion was recognized as revenue during the three months ended March 31, 2024.
−Removed: 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.
+Added: Our total unearned revenue as of December 31, 2023 was $ 20.9 billion, of which $ 9.8 billion was recognized as revenue during the six months ended June 30, 2024.
+Added: Included in “Other long-term liabilities” on our consolidated balance sheets was $ 5.7 billion and $ 6.7 billion of unearned revenue as of December 31, 2023 and June 30, 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 $ 157.7 billion as of March 31, 2024.
+Added: For contracts with original terms that exceed one year, those commitments not yet recognized were $ 156.6 billion as of June 30, 2024.
The weighted-average remaining life of our long-term contracts is 3.9 years.
6 unchanged sentences
Cash, Cash Equivalents, Restricted Cash, and Marketable Securities
−Removed: 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.
+Added: As of December 31, 2023 and June 30, 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.
9 unchanged sentences
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, 2023 March 31, 2024
+Added: December 31, 2023 June 30, 2024
Fair Value Cost or
13 unchanged sentences
___________________
−Removed: (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.
+Added: (1) The related unrealized gain (loss) recorded in “Other income (expense), net” was $ 284 million and $ 443 million in Q2 2023 and Q2 2024, and $( 195 ) million and $( 1.7 ) billion for the six months ended June 30, 2023 and 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 March 31, 2024 (in millions):
+Added: The following table summarizes the remaining contractual maturities of our cash equivalents and marketable debt securities as of June 30, 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, 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.
+Added: As of December 31, 2023 and June 30, 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, 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: As of December 31, 2023 and June 30, 2024, equity investments not accounted for under the equity-method and without readily determinable fair values had a carrying value of $ 754 million and $ 815 million, with adjustments recognized in “Other income (expense), net” on our consolidated statements of operations.
In Q3 2023, we invested in a $ 1.25 billion note from Anthropic, PBC, which is convertible to equity.
5 unchanged sentences
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, 2023 March 31, 2024
+Added: December 31, 2023 June 30, 2024
Cash and cash equivalents $ 73,387 $ 71,178
4 unchanged sentences
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.
−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 $ 62.5 billion and $ 60.9 billion as of December 31, 2023 and March 31, 2024.
−Removed: Accumulated amortization associated with finance leases was $ 44.7 billion and $ 44.0 billion as of December 31, 2023 and March 31, 2024.
+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 $ 59.5 billion as of December 31, 2023 and June 30, 2024.
+Added: Accumulated amortization associated with finance leases was $ 44.7 billion and $ 43.5 billion as of December 31, 2023 and June 30, 2024.
Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions):
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2023 2024 2023 2024
Operating lease cost $ 2,608 $ 2,921 $ 5,120 $ 5,750
6 unchanged sentences
Other information about lease amounts recognized in our consolidated financial statements is as follows:
−Removed: December 31, 2023 March 31, 2024
+Added: December 31, 2023 June 30, 2024
Weighted-average remaining lease term – operating leases 11.3 years 10.9 years
10 unchanged sentences
Total long-term lease liabilities $ 67,220 $ 10,077 $ 77,297
−Removed: March 31, 2024
+Added: June 30, 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 March 31, 2024 (in millions):
−Removed: Nine 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 June 30, 2024 (in millions):
+Added: Six 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 $ 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.
−Removed: 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.
−Removed: (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.
−Removed: For those digital media content agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date.
+Added: Excluding interest, current financing obligations of $ 271 million and $ 289 million are recorded within “Accrued expenses and other” and $ 6.6 billion and $ 6.9 billion are recorded within “Other long-term liabilities” as of December 31, 2023 and June 30, 2024.
+Added: The weighted-average remaining term of the financing obligations was 17.0 years and 16.6 years and the weighted-average imputed interest rate was 3.1 % and 3.0 % as of December 31, 2023 and June 30, 2024.
+Added: (2) Includes unconditional purchase obligations related to long-term agreements to acquire and license digital media content, procure energy, and license software that are not reflected on the consolidated balance sheets.
+Added: 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.
8 unchanged sentences
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 2023 Annual Report on Form 10-K, as supplemented by the following:
−Removed: In May 2018, Rensselaer Polytechnic Institute and CF Dynamic Advances LLC filed a complaint against Amazon.com, Inc.
−Removed: in the United States District Court for the Northern District of New York.
−Removed: The complaint alleged, among other things, that “Alexa Voice Software and Alexa enabled devices” infringe U.S.
−Removed: 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.
−Removed: In March 2023, the plaintiffs alleged in
−Removed: their damages report that in the event of a finding of liability Amazon could be subject to $ 140 million to $ 267 million in damages.
−Removed: In March 2024, the district court granted summary judgment ruling that the patent is invalid and dismissed the case.
−Removed: In April 2024, the plaintiffs filed a notice of appeal.
−Removed: We dispute the allegations of wrongdoing and will continue to defend ourselves vigorously in this matter.
−Removed: In December 2018, Kove IO, Inc.
−Removed: filed a complaint against Amazon Web Services, Inc.
−Removed: in the United States District Court for the Northern District of Illinois.
−Removed: The complaint alleged, among other things, that Amazon S3 and DynamoDB infringe U.S.
−Removed: 7,814,170 and 7,103,640, each entitled “Network Distributed Tracking Wire Transfer Protocol”;
−Removed: 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.
−Removed: In April 2024, a jury found that Amazon infringed the asserted patents and awarded Kove $ 525 million in damages.
−Removed: We disagree with the jury’s findings, intend to appeal the jury verdict, and will continue to defend ourselves vigorously in this matter.
+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 and in Item 1 of Part I, “Financial Statements — Note 4 — Commitments and Contingencies — Legal Proceedings” of our Quarterly Report on Form 10-Q for the period ended March 31, 2024, as supplemented by the following:
+Added: Beginning in March 2020 with Frame-Wilson v.
+Added: Amazon.com, Inc.
+Added: filed in the United States District Court for the Western District of Washington (“W.D.
+Added: Wash.”), private litigants have filed a number of cases in the U.S.
+Added: and Canada alleging, among other things, price fixing arrangements between Amazon.com, Inc.
+Added: and vendors and third-party sellers in Amazon’s stores, monopolization and attempted monopolization, and consumer protection and unjust enrichment claims.
+Added: 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.
+Added: 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.
+Added: The complaints seek billions of dollars of alleged damages, treble damages, punitive damages, injunctive relief, civil penalties, attorneys’ fees, and costs.
+Added: The Federal Trade Commission and a number of state Attorneys General filed a similar lawsuit in September 2023 in the W.D.
+Added: alleging violations of federal antitrust and state antitrust and consumer protection laws.
+Added: 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.
+Added: The complaint seeks injunctive and structural relief, an unspecified amount of damages, and costs.
+Added: In May 2024, the Attorney General of Arizona filed a complaint in the Superior Court of Arizona in Maricopa County alleging that Amazon’s practices related to pricing and the Featured Offers in its stores violate state antitrust and consumer protection laws.
+Added: That complaint also seeks injunctive relief, an unspecified amount of damages, civil penalties, and costs.
+Added: 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.
+Added: Amazon.com, Inc.
+Added: Wash.) in January 2023, and the California Attorney General’s lawsuit in March 2023.
+Added: 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.
+Added: In March 2022, the DC Superior Court dismissed the DC Attorney General’s lawsuit in its entirety;
+Added: the dismissal is under appeal.
+Added: We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters.
+Added: In March 2024, R2 Semiconductor Inc.
+Added: filed a complaint against Amazon Web Services EMEA SARL in the Düsseldorf Regional Court in Germany.
+Added: The complaint alleges, among other things, that use of certain Intel processors by AWS EC2 instances infringes European Patent No.
+Added: 3,376,653 B1, entitled “Over Voltage Protection of a Switching Converter.” The complaint seeks an injunction, an unspecified amount of damages, and other relief.
+Added: We dispute the allegations of wrongdoing and intend 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 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
+Added: 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 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.
+Added: As of June 30, 2024, we had $ 62.5 billion of unsecured senior notes outstanding (the “Notes”) and $ 183 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, 2023 March 31, 2024
+Added: Maturities (1) Stated Interest Rates Effective Interest Rates December 31, 2023 June 30, 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 11.3 , 13.9 , 17.3 , 12.8 , 12.0 , and 4.6 years as of March 31, 2024.
−Removed: The combined weighted-average remaining life of the Notes was 12.4 years as of March 31, 2024.
+Added: (1) The weighted-average remaining lives of the 2014, 2017, 2020, 2021, April 2022, and December 2022 Notes were 11.1 , 13.6 , 17.0 , 14.7 , 13.4 , and 4.4 years as of June 30, 2024.
+Added: The combined weighted-average remaining life of the Notes was 12.9 years as of June 30, 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 $ 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.
−Removed: 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”).
−Removed: 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 $ 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: The estimated fair value of the Notes was approximately $ 60.6 billion and $ 54.5 billion as of December 31, 2023 and June 30, 2024, which is based on quoted prices for our debt as of those dates.
+Added: As of June 30, 2024, we had a $ 240 million secured revolving credit facility with a lender that was secured by certain seller receivables, which we decreased from $ 1.5 billion to $ 352 million in March 2024 and further decreased to $ 240 million in May 2024 (the “Credit Facility”).
+Added: The Credit Facility bore interest based on the daily Secured Overnight Financing Rate plus 1.25 %, and had a commitment fee of up to 0.45 % on the undrawn portion.
+Added: There were $ 682 million and $ 183 million of borrowings outstanding under the Credit Facility as of December 31, 2023 and June 30, 2024, which had an interest rate of 6.6 %.
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.
−Removed: 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.
−Removed: 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: As of December 31, 2023 and June 30, 2024, we had pledged $ 806 million and $ 290 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 was based on Level 2 inputs, approximated its carrying value as of December 31, 2023 and June 30, 2024.
+Added: In July 2024, we repaid outstanding borrowings and terminated the Credit Facility.
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 %.
2 unchanged sentences
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 no borrowings outstanding under the Commercial Paper Programs as of December 31, 2023 and March 31, 2024.
+Added: There were no borrowings outstanding under the Commercial Paper Programs as of December 31, 2023 and June 30, 2024.
We use the net proceeds from the issuance of commercial paper for general corporate purposes.
1 unchanged sentence
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.
−Removed: There were no borrowings outstanding under the Credit Agreement as of December 31, 2023 and March 31, 2024.
+Added: There were no borrowings outstanding under the Credit Agreement as of December 31, 2023 and June 30, 2024.
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, 2023 and March 31, 2024.
+Added: There were no borrowings outstanding under the Short-Term Credit Agreement as of December 31, 2023 and June 30, 2024.
We also utilize other short-term credit facilities for working capital purposes.
−Removed: 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.
−Removed: In addition, we had $ 8.5 billion of unused letters of credit as of March 31, 2024.
+Added: There were $ 147 million and $ 76 million of borrowings outstanding under these facilities as of December 31, 2023 and June 30, 2024, which were included in “Accrued expenses and other” on our consolidated balance sheets.
+Added: In addition, we had $ 7.8 billion of unused letters of credit as of June 30, 2024.
Note 6 — STOCKHOLDERS’ EQUITY
1 unchanged sentence
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.
−Removed: There were no repurchases of our common stock during the three months ended March 31, 2023 or 2024.
−Removed: As of March 31, 2024, we have $ 6.1 billion remaining under the repurchase program.
+Added: There were no repurchases of our common stock during the six months ended June 30, 2023 or 2024.
+Added: As of June 30, 2024, we have $ 6.1 billion remaining under the repurchase program.
Stock Award Plans
2 unchanged sentences
Stock Award Activity
−Removed: Common shares outstanding plus shares underlying outstanding stock awards totaled 10.8 billion as of December 31, 2023 and March 31, 2024.
+Added: Common shares outstanding plus shares underlying outstanding stock awards totaled 10.8 billion and 10.9 billion as of December 31, 2023 and June 30, 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
+Added: June 30, Six Months Ended
+Added: 2023 2024 2023 2024
Cost of sales $ 251 $ 266 $ 416 $ 440
4 unchanged sentences
Total stock-based compensation expense $ 7,127 $ 6,722 $ 11,875 $ 11,683
−Removed: The following table summarizes our restricted stock unit activity for the three months ended March 31, 2024 (in millions):
+Added: The following table summarizes our restricted stock unit activity for the six months ended June 30, 2024 (in millions):
Number of Units Weighted-Average
3 unchanged sentences
Units forfeited ( 23.0 ) 130
−Removed: Outstanding as of March 31, 2024 384.9 126
−Removed: Scheduled vesting for outstanding restricted stock units as of March 31, 2024, is as follows (in millions):
−Removed: Nine Months Ended December 31, Year Ended December 31,
+Added: Outstanding as of June 30, 2024 380.5 138
+Added: Scheduled vesting for outstanding restricted stock units as of June 30, 2024, is as follows (in millions):
+Added: Six Months Ended December 31, Year Ended December 31,
2024 2025 2026 2027 2028 Thereafter Total
Scheduled vesting — restricted stock units 104.4 149.3 88.7 28.8 6.1 3.2 380.5
−Removed: As of March 31, 2024, there was $ 14.7 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements.
−Removed: 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, 2023 and March 31, 2024 was 26.1 %.
+Added: As of June 30, 2024, there was $ 22.1 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements.
+Added: 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 1.0 year.
+Added: The estimated forfeiture rate as of December 31, 2023 and June 30, 2024 was 26.1 % and 25.8 %.
Changes in Stockholders’ Equity
1 unchanged sentence
Three Months Ended
+Added: June 30, Six Months Ended
+Added: 2023 2024 2023 2024
Total beginning stockholders’ equity $ 154,526 $ 216,661 $ 146,043 $ 201,875
−Removed: Beginning and ending common stock 108 109
+Added: Beginning common stock 108 109 108 109
+Added: Stock-based compensation and issuance of employee benefit plan stock — 1 — 1
+Added: Ending common stock 108 110 108 110
Beginning and ending treasury stock ( 7,837 ) ( 7,837 ) ( 7,837 ) ( 7,837 )
14 unchanged sentences
Our effective tax rate can be more or less volatile based on the amount of pre-tax income or loss.
−Removed: For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower.
+Added: For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax
+Added: income is lower.
In addition, we record valuation allowances against deferred tax assets when there is uncertainty about our ability to generate future income in relevant jurisdictions.
2 unchanged sentences
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 provision for the three months ended March 31, 2023 was $ 948 million, which included $ 48 million of net discrete tax expense.
−Removed: 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.
−Removed: Cash paid for income taxes, net of refunds was $ 619 million and $ 458 million in Q1 2023 and Q1 2024.
−Removed: As of December 31, 2023 and March 31, 2024, income tax contingencies were approximately $ 5.2 billion and $ 5.5 billion.
+Added: Our income tax provision for the six months ended June 30, 2023 was $ 1.8 billion, which included $ 306 million of net discrete tax benefits, consisting of $ 805 million resulting from a change in the estimated qualifying expenditures associated with our 2022 U.S.
+Added: federal R&D credit and a related increase in our foreign income deduction tax benefit, partially offset by discrete tax expense related to shortfalls from stock-based compensation.
+Added: Our income tax provision for the six months ended June 30, 2024 was $ 4.2 billion, which included $ 1.9 billion of net discrete tax benefits primarily attributable to excess tax benefits from stock-based compensation.
+Added: Cash paid for income taxes, net of refunds was $ 3.7 billion and $ 5.7 billion in Q2 2023 and Q2 2024, and $ 4.4 billion and $ 6.2 billion for the six months ended June 30, 2023 and 2024.
+Added: As of December 31, 2023 and June 30, 2024, income tax contingencies were approximately $ 5.2 billion and $ 5.6 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
+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 accrued.
It is reasonably possible that within the next twelve months we will receive additional assessments by various tax authorities or possibly reach resolution of income tax controversies in one or more jurisdictions.
31 unchanged sentences
Three Months Ended
+Added: June 30, Six Months Ended
+Added: 2023 2024 2023 2024
North America
12 unchanged sentences
Operating income 7,681 14,672 12,455 29,979
−Removed: Total non-operating expense ( 655 ) ( 2,324 )
+Added: Total non-operating income (expense) ( 118 ) 573 ( 773 ) ( 1,751 )
Provision for income taxes ( 804 ) ( 1,767 ) ( 1,752 ) ( 4,234 )
3 unchanged sentences
Three Months Ended
+Added: June 30, Six Months Ended
+Added: 2023 2024 2023 2024
Online stores (1) $ 52,966 $ 55,392 $ 104,062 $ 110,062
18 unchanged sentences
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.