Stockholders' Equity

3 Months Ended

Mar. 31, 2024

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. There were no repurchases of our common stock during the three months ended March 31, 2023 or 2024. As of March 31, 2024, we have $6.1 billion remaining under the repurchase program.

Stock Award Plans

Employees vest in restricted stock unit awards over the corresponding service term, generally between two and five years. The majority of restricted stock unit awards are granted at the date of hire or in Q2 as part of the annual compensation review and primarily vest semi-annually in Q2 and Q4 of the relevant compensation year.

Stock Award Activity

Common shares outstanding plus shares underlying outstanding stock awards totaled 10.8 billion as of December 31, 2023 and March 31, 2024. 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,
	2023		2024
Cost of sales	$	165	$	174
Fulfillment	603		636
Technology and infrastructure	2,574		2,772
Sales and marketing	993		932
General and administrative	413		447
Total stock-based compensation expense	$	4,748	$	4,961

The following table summarizes our restricted stock unit activity for the three months ended March 31, 2024 (in millions):

	Number of Units	Weighted-Average Grant-Date Fair Value
Outstanding as of December 31, 2023	405.8	$	125
Units granted	10.7	166
Units vested	(20.0)	140
Units forfeited	(11.6)	126
Outstanding as of March 31, 2024	384.9	126

Scheduled vesting for outstanding restricted stock units as of March 31, 2024, is as follows (in millions):

	Nine Months Ended December 31,	Year Ended December 31,
	2024	2025	2026	2027	2028	Thereafter	Total
Scheduled vesting — restricted stock units	195.0	122.0	50.1	14.0	2.1	1.7	384.9

As of March 31, 2024, there was $14.7 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 0.9 years. The estimated forfeiture rate as of December 31, 2023 and March 31, 2024 was 26.1%.

Changes in Stockholders’ Equity

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

	Three Months Ended March 31,
	2023		2024
Total beginning stockholders’ equity	$	146,043	$	201,875
Beginning and ending common stock	108		109
Beginning and ending treasury stock	(7,837)		(7,837)
Beginning additional paid-in capital	75,066		99,025
Stock-based compensation and issuance of employee benefit plan stock	4,797		4,913
Ending additional paid-in capital	79,863		103,938
Beginning accumulated other comprehensive income (loss)	(4,487)		(3,040)
Other comprehensive income (loss)	514		(558)
Ending accumulated other comprehensive income (loss)	(3,973)		(3,598)
Beginning retained earnings	83,193		113,618
Net income	3,172		10,431
Ending retained earnings	86,365		124,049
Total ending stockholders’ equity	$	154,526	$	216,661