Stockholders' Equity

6 Months Ended

Jun. 30, 2023

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 46.2 million shares of our common stock for $6.0 billion during the six months ended June 30, 2022 under these programs. There were no repurchases of our common stock during the six months ended June 30, 2023. As of June 30, 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 and 10.8 billion as of December 31, 2022 and June 30, 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 June 30,				Six Months Ended June 30,
	2022		2023		2022		2023
Cost of sales	$	213	$	251	$	359	$	416
Fulfillment	763		932		1,261		1,535
Technology and infrastructure	2,814		4,043		4,459		6,617
Sales and marketing	990		1,303		1,655		2,296
General and administrative	429		598		725		1,011
Total stock-based compensation expense	$	5,209	$	7,127	$	8,459	$	11,875

The following table summarizes our restricted stock unit activity for the six months ended June 30, 2023 (in millions):


	Number of Units	Weighted-Average Grant-Date Fair Value
Outstanding as of December 31, 2022	384.4	$	144
Units granted	200.3	103
Units vested	(70.1)	143
Units forfeited	(33.1)	138
Outstanding as of June 30, 2023	481.5	128

Scheduled vesting for outstanding restricted stock units as of June 30, 2023, is as follows (in millions):


	Six Months Ended December 31,	Year Ended December 31,
	2023	2024	2025	2026	2027	Thereafter	Total
Scheduled vesting — restricted stock units	70.7	224.5	128.6	47.0	7.4	3.3	481.5

As of June 30, 2023, there was $28.0 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 June 30, 2023 was 26.5% and 26.3%. 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,
	2022		2023		2022		2023
Total beginning stockholders’ equity	$	134,001	$	154,526	$	138,245	$	146,043

Beginning common stock	107		108		106		108
Stock-based compensation and issuance of employee benefit plan stock	—		—		1		—
Ending common stock	107		108		107		108

Beginning treasury stock	(4,503)		(7,837)		(1,837)		(7,837)
Common stock repurchased	(3,334)		—		(6,000)		—
Ending treasury stock	(7,837)		(7,837)		(7,837)		(7,837)

Beginning additional paid-in capital	58,691		79,863		55,437		75,066
Stock-based compensation and issuance of employee benefit plan stock	5,180		7,033		8,434		11,830
Ending additional paid-in capital	63,871		86,896		63,871		86,896

Beginning accumulated other comprehensive income (loss)	(2,365)		(3,973)		(1,376)		(4,487)
Other comprehensive income (loss)	(2,417)		293		(3,406)		807
Ending accumulated other comprehensive income (loss)	(4,782)		(3,680)		(4,782)		(3,680)

Beginning retained earnings	82,071		86,365		85,915		83,193

Net income (loss)	(2,028)		6,750		(5,872)		9,922
Ending retained earnings	80,043		93,115		80,043		93,115

Total ending stockholders’ equity	$	131,402	$	168,602	$	131,402	$	168,602