Stockholders' Equity

6 Months Ended

Jun. 30, 2021

STOCKHOLDERS’ EQUITY

Stock Repurchase Activity

In February 2016, the Board of Directors authorized a program to repurchase up to $5.0 billion of our common stock, with no fixed expiration. There were no repurchases of common stock during the six months ended June 30, 2020 or 2021.

Stock Award Activity

Common shares outstanding plus shares underlying outstanding stock awards totaled 518 million and 522 million as of December 31, 2020 and June 30, 2021. These totals include all vested and unvested stock awards outstanding, including those awards we estimate will be forfeited. Stock-based compensation expense is as follows (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2021		2020		2021
Cost of sales	$	76	$	145	$	118	$	235
Fulfillment	417		566		677		908
Technology and content	1,421		1,887		2,382		3,115
Marketing	456		691		787		1,147
General and administrative	231		302		394		492
Total stock-based compensation expense	$	2,601	$	3,591	$	4,358	$	5,897

The following table summarizes our restricted stock unit activity for the six months ended June 30, 2021 (in millions):


	Number of Units	Weighted-Average Grant-Date Fair Value
Outstanding as of December 31, 2020	15.2	$	2,004
Units granted	4.4	3,298
Units vested	(2.9)	1,623
Units forfeited	(1.0)	2,115
Outstanding as of June 30, 2021	15.7	2,430

Scheduled vesting for outstanding restricted stock units as of June 30, 2021, is as follows (in millions):


	Six Months Ended December 31,	Year Ended December 31,
	2021	2022	2023	2024	2025	Thereafter	Total
Scheduled vesting — restricted stock units	2.6	5.6	5.1	1.8	0.4	0.2	15.7

As of June 30, 2021, there was $18.3 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements. This compensation is recognized on an accelerated basis with approximately half of the compensation expected to be expensed in the next twelve months, and has a remaining weighted-average recognition period of 1.2 years. The estimated forfeiture rate as of December 31, 2020 and June 30, 2021 was 27%. Changes in our estimates and assumptions relating to forfeitures may cause us to realize material changes in stock-based compensation expense in the future.

Changes in Stockholders’ Equity

The following table shows changes in stockholders’ equity (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2021		2020		2021
Total beginning stockholders’ equity	$	65,272	$	103,320	$	62,060	$	93,404

Beginning and ending common stock	5		5		5		5

Beginning and ending treasury stock	(1,837)		(1,837)		(1,837)		(1,837)

Beginning additional paid-in capital	35,412		45,160		33,658		42,865
Stock-based compensation and issuance of employee benefit plan stock	2,605		3,564		4,359		5,859
Ending additional paid-in capital	38,017		48,724		38,017		48,724

Beginning accumulated other comprehensive income (loss)	(2,063)		(666)		(986)		(180)
Other comprehensive income (loss)	608		141		(469)		(345)
Ending accumulated other comprehensive income (loss)	(1,455)		(525)		(1,455)		(525)

Beginning retained earnings	33,755		60,658		31,220		52,551

Net income	5,243		7,778		7,778		15,885
Ending retained earnings	38,998		68,436		38,998		68,436

Total ending stockholders’ equity	$	73,728	$	114,803	$	73,728	$	114,803