Stockholders' Equity

3 Months Ended

Mar. 31, 2022

STOCKHOLDERS’ EQUITY

Stock Repurchase Activity

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. We repurchased 0.9 million shares of our common stock for $2.7 billion during the three months ended March 31, 2022 under these programs. As of March 31, 2022, we have $9.5 billion remaining under the repurchase program.

Stock Award Activity

Common shares outstanding plus shares underlying outstanding stock awards totaled 523 million as of December 31, 2021 and March 31, 2022. 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 March 31,
		2021		2022
Cost of sales		$	90	$	146
Fulfillment		342		498
Technology and content		1,228		1,645
Sales and marketing		456		665
General and administrative		190		296
Total stock-based compensation expense		$	2,306	$	3,250

The following table summarizes our restricted stock unit activity for the three months ended March 31, 2022 (in millions):


	Number of Units	Weighted-Average Grant-Date Fair Value
Outstanding as of December 31, 2021	14.0	$	2,684
Units granted	1.4	3,104
Units vested	(0.7)	1,874
Units forfeited	(0.6)	2,670
Outstanding as of March 31, 2022	14.1	2,768

Scheduled vesting for outstanding restricted stock units as of March 31, 2022, is as follows (in millions):


	Nine Months Ended December 31,	Year Ended December 31,
	2022	2023	2024	2025	2026	Thereafter	Total
Scheduled vesting — restricted stock units	4.7	5.2	2.6	1.3	0.2	0.1	14.1

As of March 31, 2022, there was $16.4 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 1.1 years. The estimated forfeiture rate as of December 31, 2021 and March 31, 2022 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 March 31,
		2021		2022
Total beginning stockholders’ equity		$	93,404	$	138,245

Beginning and ending common stock		5		5

Beginning treasury stock		(1,837)		(1,837)
Common stock repurchased		—		(2,666)
Ending treasury stock		(1,837)		(4,503)

Beginning additional paid-in capital		42,865		55,538
Stock-based compensation and issuance of employee benefit plan stock		2,295		3,255
Ending additional paid-in capital		45,160		58,793

Beginning accumulated other comprehensive income (loss)		(180)		(1,376)
Other comprehensive income (loss)		(486)		(989)
Ending accumulated other comprehensive income (loss)		(666)		(2,365)

Beginning retained earnings		52,551		85,915

Net income (loss)		8,107		(3,844)
Ending retained earnings		60,658		82,071

Total ending stockholders’ equity		$	103,320	$	134,001