Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Stockholders' Equity

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 18.6 million shares of our common stock for $2.7 billion during the three months ended March 31, 2022 under these programs. There were no repurchases of our common stock during the three months ended March 31, 2023. As of March 31, 2023, we have $6.1 billion remaining under the repurchase program.

Stock Award Activity

Common shares outstanding plus shares underlying outstanding stock awards totaled 10.6 billion as of December 31, 2022 and March 31, 2023. 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,
	2022		2023
Cost of sales	$	146	$	165
Fulfillment	498		603
Technology and content	1,645		2,574
Sales and marketing	665		993
General and administrative	296		413
Total stock-based compensation expense	$	3,250	$	4,748

The following table summarizes our restricted stock unit activity for the three months ended March 31, 2023 (in millions):

	Number of Units	Weighted-Average Grant-Date Fair Value
Outstanding as of December 31, 2022	384.4	$	144
Units granted	13.4	99
Units vested	(15.6)	120
Units forfeited	(15.5)	144
Outstanding as of March 31, 2023	366.7	144

Scheduled vesting for outstanding restricted stock units as of March 31, 2023, is as follows (in millions):

	Nine Months Ended December 31,	Year Ended December 31,
	2023	2024	2025	2026	2027	Thereafter	Total
Scheduled vesting — restricted stock units	124.5	133.6	67.0	37.2	2.5	1.9	366.7

As of March 31, 2023, there was $19.9 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 1.0 year. The estimated forfeiture rate as of December 31, 2022 and March 31, 2023 was 26.5%. 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,
	2022		2023
Total beginning stockholders’ equity	$	138,245	$	146,043
Beginning common stock	106		108
Stock-based compensation and issuance of employee benefit plan stock	1		—
Ending common stock	107		108
Beginning treasury stock	(1,837)		(7,837)
Common stock repurchased	(2,666)		—
Ending treasury stock	(4,503)		(7,837)
Beginning additional paid-in capital	55,437		75,066
Stock-based compensation and issuance of employee benefit plan stock	3,254		4,797
Ending additional paid-in capital	58,691		79,863
Beginning accumulated other comprehensive income (loss)	(1,376)		(4,487)
Other comprehensive income (loss)	(989)		514
Ending accumulated other comprehensive income (loss)	(2,365)		(3,973)
Beginning retained earnings	85,915		83,193
Net income (loss)	(3,844)		3,172
Ending retained earnings	82,071		86,365
Total ending stockholders’ equity	$	134,001	$	154,526