Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 ____________________________________

FORM 10-Q

____________________________________ 

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to             .

Commission File No. 000-22513

____________________________________

AMAZON.COM, INC.

(Exact name of registrant as specified in its charter)

 ____________________________________

Delaware	91-1646860
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

410 Terry Avenue North, Seattle, Washington 98109-5210

(206) 266-1000

(Address and telephone number, including area code, of registrant’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $.01 per share	AMZN	Nasdaq Global Select Market

____________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

10,187,554,818 shares of common stock, par value $0.01 per share, outstanding as of July 20, 2022

Table of Contents

AMAZON.COM, INC.

FORM 10-Q

For the Quarterly Period Ended June 30, 2022

INDEX

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Consolidated Statements of Cash Flows	3
	Consolidated Statements of Operations	4
	Consolidated Statements of Comprehensive Income (Loss)	5
	Consolidated Balance Sheets	6
	Notes to Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	33
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
Item 3.	Defaults Upon Senior Securities	44
Item 4.	Mine Safety Disclosures	44
Item 5.	Other Information	44
Item 6.	Exhibits	45
Signatures		46

2

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

AMAZON.COM, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,				Twelve Months Ended June 30,
	2021		2022		2021		2022		2021		2022
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	$	34,155	$	36,599	$	42,377	$	36,477	$	37,842	$	40,667
OPERATING ACTIVITIES:
Net income (loss)	7,778		(2,028)		15,885		(5,872)		29,438		11,607
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other	8,038		9,594		15,546		18,572		29,687		37,322
Stock-based compensation	3,591		5,209		5,897		8,459		10,747		15,319
Other operating expense (income), net	18		122		48		337		(372)		426
Other expense (income), net	(1,258)		6,104		(2,714)		14,793		(5,092)		3,201
Deferred income taxes	701		(1,955)		2,404		(3,956)		1,063		(6,670)
Changes in operating assets and liabilities:
Inventories	(209)		(3,890)		(513)		(6,504)		(4,082)		(15,478)
Accounts receivable, net and other	(4,462)		(6,799)		(6,717)		(8,315)		(13,294)		(19,761)
Accounts payable	47		3,699		(8,219)		(5,681)		8,689		6,140
Accrued expenses and other	(1,685)		(1,412)		(5,745)		(7,315)		1,071		553
Unearned revenue	156		321		1,056		1,657		1,467		2,915
Net cash provided by (used in) operating activities	12,715		8,965		16,928		6,175		59,322		35,574
INVESTING ACTIVITIES:
Purchases of property and equipment	(14,288)		(15,724)		(26,370)		(30,675)		(52,256)		(65,358)
Proceeds from property and equipment sales and incentives	1,300		1,626		2,195		2,835		5,080		6,297
Acquisitions, net of cash acquired, and other	(320)		(259)		(950)		(6,600)		(3,066)		(7,635)
Sales and maturities of marketable securities	13,213		2,608		31,039		25,361		61,512		53,706
Purchases of marketable securities	(21,985)		(329)		(36,660)		(2,093)		(74,929)		(25,590)
Net cash provided by (used in) investing activities	(22,080)		(12,078)		(30,746)		(11,172)		(63,659)		(38,580)
FINANCING ACTIVITIES:
Common stock repurchased	—		(3,334)		—		(6,000)		—		(6,000)
Proceeds from short-term debt, and other	1,176		4,865		3,102		18,608		6,848		23,462
Repayments of short-term debt, and other	(1,176)		(7,610)		(3,177)		(13,841)		(6,817)		(18,417)
Proceeds from long-term debt	18,516		12,824		18,627		12,824		19,158		13,200
Repayments of long-term debt	(41)		(1)		(80)		(1)		(1,392)		(1,511)
Principal repayments of finance leases	(2,804)		(2,059)		(6,210)		(4,836)		(11,435)		(9,789)
Principal repayments of financing obligations	(28)		(59)		(95)		(138)		(116)		(205)
Net cash provided by (used in) financing activities	15,643		4,626		12,167		6,616		6,246		740
Foreign currency effect on cash, cash equivalents, and restricted cash	234		(412)		(59)		(396)		916		(701)
Net increase (decrease) in cash, cash equivalents, and restricted cash	6,512		1,101		(1,710)		1,223		2,825		(2,967)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$	40,667	$	37,700	$	40,667	$	37,700	$	40,667	$	37,700

See accompanying notes to consolidated financial statements.

3

Table of Contents

AMAZON.COM, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2022		2021		2022
Net product sales	$	58,004	$	56,575	$	115,495	$	113,030
Net service sales	55,076		64,659		106,103		124,648
Total net sales	113,080		121,234		221,598		237,678
Operating expenses:
Cost of sales	64,176		66,424		126,579		132,923
Fulfillment	17,638		20,342		34,168		40,613
Technology and content	13,871		18,072		26,359		32,914
Sales and marketing	7,524		10,086		13,731		18,406
General and administrative	2,158		2,903		4,145		5,497
Other operating expense (income), net	11		90		49		339
Total operating expenses	105,378		117,917		205,031		230,692
Operating income	7,702		3,317		16,567		6,986
Interest income	106		159		211		267
Interest expense	(435)		(584)		(834)		(1,056)
Other income (expense), net	1,261		(5,545)		2,958		(14,115)
Total non-operating income (expense)	932		(5,970)		2,335		(14,904)
Income (loss) before income taxes	8,634		(2,653)		18,902		(7,918)
Benefit (provision) for income taxes	(868)		637		(3,024)		2,059
Equity-method investment activity, net of tax	12		(12)		7		(13)
Net income (loss)	$	7,778	$	(2,028)	$	15,885	$	(5,872)
Basic earnings per share	$	0.77	$	(0.20)	$	1.57	$	(0.58)
Diluted earnings per share	$	0.76	$	(0.20)	$	1.55	$	(0.58)
Weighted-average shares used in computation of earnings per share:
Basic	10,103		10,175		10,089		10,173
Diluted	10,286		10,175		10,276		10,173

See accompanying notes to consolidated financial statements.

4

Table of Contents

AMAZON.COM, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in millions)

(unaudited) 

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2022		2021		2022
Net income (loss)	$	7,778	$	(2,028)	$	15,885	$	(5,872)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $(17), $76, $(4), and $60	159		(2,186)		(215)		(2,519)
Net change in unrealized gains (losses) on available-for-sale debt securities:
Unrealized gains (losses), net of tax of $(2), $0, $28, and $1	(6)		(238)		(104)		(900)
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $4, $0, $8, and $0	(12)		7		(26)		13
Net unrealized gains (losses) on available-for-sale debt securities	(18)		(231)		(130)		(887)
Total other comprehensive income (loss)	141		(2,417)		(345)		(3,406)
Comprehensive income (loss)	$	7,919	$	(4,445)	$	15,540	$	(9,278)

See accompanying notes to consolidated financial statements.

5

Table of Contents

AMAZON.COM, INC.

CONSOLIDATED BALANCE SHEETS

(in millions, except per share data) 

	December 31, 2021		June 30, 2022
			(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	36,220	$	37,478
Marketable securities	59,829		23,232
Inventories	32,640		38,153
Accounts receivable, net and other	32,891		34,804
Total current assets	161,580		133,667
Property and equipment, net	160,281		173,706
Operating leases	56,082		58,430
Goodwill	15,371		20,195
Other assets	27,235		33,730
Total assets	$	420,549	$	419,728
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	78,664	$	71,219
Accrued expenses and other	51,775		56,254
Unearned revenue	11,827		12,818
Total current liabilities	142,266		140,291
Long-term lease liabilities	67,651		66,524
Long-term debt	48,744		58,053
Other long-term liabilities	23,643		23,458
Commitments and contingencies (Note 4)
Stockholders’ equity:
Preferred stock ($0.01 par value; 500 shares authorized; no shares issued or outstanding)	—		—
Common stock ($0.01 par value; 100,000 shares authorized; 10,644 and 10,699 shares issued; 10,175 and 10,183 shares outstanding)	106		107
Treasury stock, at cost	(1,837)		(7,837)
Additional paid-in capital	55,437		63,871
Accumulated other comprehensive income (loss)	(1,376)		(4,782)
Retained earnings	85,915		80,043
Total stockholders’ equity	138,245		131,402
Total liabilities and stockholders’ equity	$	420,549	$	419,728

See accompanying notes to consolidated financial statements.

6

Table of Contents

AMAZON.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1 — ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES

Unaudited Interim Financial Information

We have prepared the accompanying consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our consolidated cash flows, operating results, and balance sheets for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2022 due to seasonal and other factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted in accordance with the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes in Item 8 of Part II, “Financial Statements and Supplementary Data,” of our 2021 Annual Report on Form 10-K.

Common Stock Split

On May 27, 2022, we effected a 20-for-1 stock split of our common stock and proportionately increased the number of authorized shares of common stock. All share, restricted stock unit (“RSU”), and per share or per RSU information throughout this Quarterly Report on Form 10-Q has been retroactively adjusted to reflect the stock split. The shares of common stock retain a par value of $0.01 per share. Accordingly, an amount equal to the par value of the increased shares resulting from the stock split was reclassified from “Additional paid-in capital” to “Common stock.”

Principles of Consolidation

The consolidated financial statements include the accounts of Amazon.com, Inc. and its consolidated entities (collectively, the “Company”), consisting of its wholly-owned subsidiaries and those entities in which we have a variable interest and of which we are the primary beneficiary, including certain entities in India and certain entities that support our seller lending financing activities. Intercompany balances and transactions between consolidated entities are eliminated.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, income taxes, useful lives of equipment, commitments and contingencies, valuation of acquired intangibles and goodwill, stock-based compensation forfeiture rates, vendor funding, inventory valuation, collectability of receivables, impairment of property and equipment and operating leases, and valuation and impairment of investments. Actual results could differ materially from these estimates.

We review the useful lives of equipment on an ongoing basis, and effective January 1, 2022 we changed our estimate of the useful lives for our servers from four to five years and for our networking equipment from five to six years. The longer useful lives are due to continuous improvements in our hardware, software, and data center designs. The effect of this change in estimate for Q2 2022, based on servers and networking equipment that were included in “Property and equipment, net” as of March 31, 2022 and those acquired during the three months ended June 30, 2022, was a reduction in depreciation and amortization expense of $928 million and a benefit to net loss of $728 million, or $0.07 per basic share and $0.07 per diluted share. The effect of this change in estimate for the six months ended June 30, 2022, based on servers and networking equipment that were included in “Property and equipment, net” as of December 31, 2021 and those acquired during the six months ended June 30, 2022, was a reduction in depreciation and amortization expense of $1.9 billion and a benefit to net loss of $1.5 billion, or $0.15 per basic share and $0.15 per diluted share.

7

Table of Contents

Supplemental Cash Flow Information

The following table shows supplemental cash flow information (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,				Twelve Months Ended June 30,
	2021		2022		2021		2022		2021		2022
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt	$	179	$	349	$	455	$	628	$	942	$	1,271
Cash paid for operating leases	1,577		2,088		3,217		4,455		5,577		7,960
Cash paid for interest on finance leases	129		95		286		202		569		437
Cash paid for interest on financing obligations	35		55		68		113		127		198
Cash paid for income taxes, net of refunds	1,803		3,145		2,604		3,598		3,526		4,682
Assets acquired under operating leases	5,578		5,101		9,114		7,276		19,576		23,531
Property and equipment acquired under finance leases, net of remeasurements and modifications	1,642		61		3,709		227		9,976		3,579
Property and equipment recognized during the construction period of build-to-suit lease arrangements	1,193		986		2,080		2,351		3,486		6,117
Property and equipment derecognized after the construction period of build-to-suit lease arrangements, with the associated leases recognized as operating	99		1,079		99		1,112		99		1,243

Earnings Per Share

Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when we have a net loss, stock awards are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect.

The following table shows the calculation of diluted shares (in millions):

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2022	2021	2022
Shares used in computation of basic earnings per share	10,103	10,175	10,089	10,173
Total dilutive effect of outstanding stock awards	183	—	187	—
Shares used in computation of diluted earnings per share	10,286	10,175	10,276	10,173

Other Income (Expense), Net

Other income (expense), net, is as follows (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2022		2021		2022
Marketable equity securities valuation gains (losses)	$	157	$	(4,322)	$	81	$	(12,567)
Equity warrant valuation gains (losses)	939		(1,124)		1,244		(1,436)
Upward adjustments relating to equity investments in private companies	31		58		1,506		65
Foreign currency gains (losses)	110		(117)		79		(103)
Other, net	24		(40)		48		(74)
Total other income (expense), net	1,261		(5,545)		2,958		(14,115)

Included in other income (expense), net is a marketable equity securities valuation loss of $3.9 billion in Q2 2022, and $11.5 billion for the six months ended June 30, 2022, from our equity investment in Rivian Automotive, Inc. (“Rivian”). 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. As of June 30, 2022, we held 158 million shares of Rivian’s Class A common stock, representing an approximate 18% ownership interest, and an approximate 16% 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

8

Table of Contents

electric vehicles, and one of our employees serving on Rivian’s board of directors. 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.

Required summarized financial information of Rivian as disclosed in its most recent SEC filings is as follows (in millions):

	Three Months Ended March 31,
	2021		2022
Revenues	$	—	$	95
Gross profit	—		(502)
Loss from operations	(410)		(1,579)
Net loss	(414)		(1,593)

Inventories

Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out method, and are valued at the lower of cost and net realizable value. 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. The inventory valuation allowance, representing a write-down of inventory, was $2.6 billion and $2.4 billion as of December 31, 2021 and June 30, 2022.

Accounts Receivable, Net and Other

Included in “Accounts receivable, net and other” on our consolidated balance sheets are amounts primarily related to customers, vendors, and sellers. As of December 31, 2021 and June 30, 2022, customer receivables, net, were $20.2 billion and $21.6 billion, vendor receivables, net, were $5.3 billion and $4.9 billion, and seller receivables, net, were $1.0 billion and $1.3 billion. Seller receivables are amounts due from sellers related to our seller lending program, which provides funding to sellers primarily to procure inventory.

We estimate losses on receivables based on expected losses, including our historical experience of actual losses. The allowance for doubtful accounts was $1.1 billion and $1.2 billion as of December 31, 2021 and June 30, 2022.

Digital Video and Music Content

The total capitalized costs of video, which is primarily released content, and music as of December 31, 2021 and June 30, 2022 were $10.7 billion and $15.2 billion. Total video and music expense was $3.1 billion and $3.7 billion in Q2 2021 and Q2 2022, and $6.2 billion and $7.3 billion for the six months ended June 30, 2021 and 2022.

Unearned Revenue

Unearned revenue is recorded when payments are received or due in advance of performing our service obligations and is recognized over the service period. Unearned revenue primarily relates to prepayments of AWS services and Amazon Prime memberships. Our total unearned revenue as of December 31, 2021 was $14.0 billion, of which $8.1 billion was recognized as revenue during the six months ended June 30, 2022. Included in “Other long-term liabilities” on our consolidated balance sheets was $2.2 billion and $2.6 billion of unearned revenue as of December 31, 2021 and June 30, 2022.

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. For contracts with original terms that exceed one year, those commitments not yet recognized were $100.1 billion as of June 30, 2022. The weighted-average remaining life of our long-term contracts is 3.9 years. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term.

Acquisition Activity

On March 17, 2022, we acquired MGM Holdings Inc. (“MGM”), for cash consideration of approximately $6.1 billion, net of cash acquired, to provide more digital media content options for customers. We also assumed $2.5 billion of debt, which we repaid immediately after closing. The acquired assets primarily consist of $3.4 billion of video content and $4.9 billion of goodwill, the majority of which is allocated to our North America segment. The valuation of certain assets and liabilities is preliminary and subject to change.

9

Table of Contents

Pro forma results of operations have not been presented because the effects of the MGM acquisition were not material to our consolidated results of operations. Acquisition-related costs were expensed as incurred and were not significant.

Note 2 — FINANCIAL INSTRUMENTS

Cash, Cash Equivalents, Restricted Cash, and Marketable Securities

As of December 31, 2021 and June 30, 2022, 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. Cash equivalents and marketable securities are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:

Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3—Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

We measure the fair value of money market funds and certain marketable equity securities based on quoted prices in active markets for identical assets or liabilities. 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. We did not hold significant amounts of marketable securities categorized as Level 3 assets as of December 31, 2021 and June 30, 2022.

10

Table of Contents

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):

	December 31, 2021		June 30, 2022
	Total Estimated Fair Value		Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Total Estimated Fair Value
Cash	$	10,942	$	9,825	$	—	$	—	$	9,825
Level 1 securities:
Money market funds	20,312		18,816		—		—		18,816
Equity securities (1)(3)	1,646								4,946
Level 2 securities:
Foreign government and agency securities	181		50		—		(1)		49
U.S. government and agency securities	4,300		2,344		—		(122)		2,222
Corporate debt securities	35,764		21,756		—		(673)		21,083
Asset-backed securities	6,738		3,736		—		(164)		3,572
Other fixed income securities	686		407		—		(18)		389
Equity securities (1)(3)	15,740								30
	$	96,309	$	56,934	$	—	$	(978)	$	60,932
Less: Restricted cash, cash equivalents, and marketable securities (2)	(260)								(222)
Total cash, cash equivalents, and marketable securities	$	96,049							$	60,710

___________________

(1)The related unrealized gain (loss) recorded in “Other income (expense), net” was $119 million and $(4.2) billion in Q2 2021 and Q2 2022, and $122 million and $(12.3) billion for the six months ended June 30, 2021 and 2022.

(2)We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable fixed income securities primarily as collateral for real estate, amounts due to third-party sellers in certain jurisdictions, debt, and standby and trade letters of credit. We classify cash, cash equivalents, and marketable fixed income securities with use restrictions of less than twelve months as “Accounts receivable, net and other” and of twelve months or longer as non-current “Other assets” on our consolidated balance sheets. See “Note 4 — Commitments and Contingencies.”

(3)Our equity investment in Rivian had a fair value of $15.6 billion and $4.1 billion as of December 31, 2021 and June 30, 2022, respectively. 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.

The following table summarizes the remaining contractual maturities of our cash equivalents and marketable fixed income securities as of June 30, 2022 (in millions):

	Amortized Cost		Estimated Fair Value
Due within one year	$	29,370	$	29,344
Due after one year through five years	14,776		13,967
Due after five years through ten years	796		760
Due after ten years	2,167		2,060
Total	$	47,109	$	46,131

Actual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions.

Equity Warrants and Non-Marketable Equity Investments

We hold equity warrants giving us the right to acquire stock of other companies. As of December 31, 2021 and June 30, 2022, these warrants had a fair value of $3.4 billion and $2.4 billion, and are recorded within “Other assets” on our consolidated balance sheets with gains and losses recognized in “Other income (expense), net” on our consolidated statements of operations. These warrants are primarily classified as Level 2 assets.

As of December 31, 2021 and June 30, 2022, equity investments not accounted for under the equity-method and without readily determinable fair values had a carrying value of $603 million and $768 million, and are recorded within “Other assets”

11

Table of Contents

on our consolidated balance sheets with adjustments recognized in “Other income (expense), net” on our consolidated statements of operations.

Consolidated Statements of Cash Flows Reconciliation

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):

	December 31, 2021		June 30, 2022
Cash and cash equivalents	$	36,220	$	37,478
Restricted cash included in accounts receivable, net and other	242		207
Restricted cash included in other assets	15		15
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows	$	36,477	$	37,700

Note 3 — LEASES

We have entered into non-cancellable operating and finance leases for fulfillment, delivery, office, physical store, data center, and sortation facilities as well as server and networking equipment, vehicles, and aircraft. Gross assets acquired under finance leases, inclusive of those where title transfers at the end of the lease, are recorded in “Property and equipment, net” and were $72.2 billion and $68.6 billion as of December 31, 2021 and June 30, 2022. Accumulated amortization associated with finance leases was $43.4 billion and $43.5 billion as of December 31, 2021 and June 30, 2022.

Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2022		2021		2022
Operating lease cost	$	1,662	$	2,133	$	3,218	$	4,236
Finance lease cost:
Amortization of lease assets	2,489		1,530		4,945		3,090
Interest on lease liabilities	119		92		251		195
Finance lease cost	2,608		1,622		5,196		3,285
Variable lease cost	415		471		763		940
Total lease cost	$	4,685	$	4,226	$	9,177	$	8,461

Other information about lease amounts recognized in our consolidated financial statements is as follows:

	December 31, 2021		June 30, 2022
Weighted-average remaining lease term – operating leases	11.3 years		11.1 years
Weighted-average remaining lease term – finance leases	8.1 years		8.7 years
Weighted-average discount rate – operating leases	2.2	%	2.4	%
Weighted-average discount rate – finance leases	2.0	%	2.1	%

12

Table of Contents

Our lease liabilities were as follows (in millions):

	December 31, 2021
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	66,269	$	25,866	$	92,135
Less: imputed interest	(7,939)		(2,113)		(10,052)
Present value of lease liabilities	58,330		23,753		82,083
Less: current portion of lease liabilities	(6,349)		(8,083)		(14,432)
Total long-term lease liabilities	$	51,981	$	15,670	$	67,651

	June 30, 2022
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	69,341	$	20,426	$	89,767
Less: imputed interest	(8,735)		(2,009)		(10,744)
Present value of lease liabilities	60,606		18,417		79,023
Less: current portion of lease liabilities	(6,707)		(5,792)		(12,499)
Total long-term lease liabilities	$	53,899	$	12,625	$	66,524

Note 4 — COMMITMENTS AND CONTINGENCIES

Commitments

The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally cancellable, as of June 30, 2022 (in millions): 

	Six Months Ended December 31,		Year Ended December 31,
	2022		2023		2024		2025		2026		Thereafter		Total
Long-term debt principal and interest	$	2,303	$	5,536	$	8,940	$	5,280	$	4,187	$	67,529	$	93,775
Operating lease liabilities	3,966		7,856		7,360		6,796		6,226		37,137		69,341
Finance lease liabilities, including interest	3,184		4,630		2,226		1,337		1,201		7,848		20,426
Financing obligations, including interest (1)	229		464		463		456		463		7,179		9,254
Leases not yet commenced	545		1,711		2,324		2,350		2,381		22,512		31,823
Unconditional purchase obligations (2)	3,110		7,088		6,208		4,927		4,342		9,404		35,079
Other commitments (3)(4)	1,898		2,229		1,492		1,051		1,132		11,234		19,036
Total commitments	$	15,235	$	29,514	$	29,013	$	22,197	$	19,932	$	162,843	$	278,734

___________________

(1)Includes non-cancellable financing obligations for fulfillment, sortation, and data center facilities. Excluding interest, current financing obligations of $196 million and $251 million are recorded within “Accrued expenses and other” and $6.2 billion and $6.8 billion are recorded within “Other long-term liabilities” as of December 31, 2021 and June 30, 2022. The weighted-average remaining term of the financing obligations was 18.8 years and 18.4 years and the weighted-average imputed interest rate was 3.2% as of December 31, 2021 and June 30, 2022.

(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. 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. 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.

(3)Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that are under construction, asset retirement obligations, and liabilities associated with digital media content agreements with initial terms greater than one year.

(4)Excludes approximately $