AMAZON.COM, INC.
[Pages:49]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, 2021 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
____________________________________
, INC.
(Exact name of registrant as specified in its charter) ____________________________________
Delaware
(State or other jurisdiction of incorporation or organization)
91-1646860
(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)
Title of Each Class
Common Stock, par value $.01 per share
Securities registered pursuant to Section 12(b) of the Act:
Trading Symbol(s)
AMZN
Name of Each Exchange on Which Registered
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
506,440,520 shares of common stock, par value $0.01 per share, outstanding as of July 21, 2021
Table of Contents
Item 1.
Item 2. Item 3. Item 4.
Item 1. Item 1A. Item 2. Item 3. Item 4. Item 5. Item 6. Signatures
, INC. FORM 10-Q
For the Quarterly Period Ended June 30, 2021 INDEX
PART I. FINANCIAL INFORMATION Financial Statements
Consolidated Statements of Cash Flows Consolidated Statements of Operations Consolidated Statements of Comprehensive Income Consolidated Balance Sheets Notes to Consolidated Financial Statements Management's Discussion and Analysis of Financial Condition and Results of Operations Quantitative and Qualitative Disclosures About Market Risk Controls and Procedures
PART II. OTHER INFORMATION Legal Proceedings Risk Factors Unregistered Sales of Equity Securities and Use of Proceeds Defaults Upon Senior Securities Mine Safety Disclosures Other Information Exhibits
2
Page
3 3 4 5 6 7 19 31 32
33 33 43 43 43 43 44 45
Table of Contents
Item 1.
Financial Statements
PART I. FINANCIAL INFORMATION
, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions) (unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
Twelve Months Ended June 30,
2020
2021
2020
2021
2020
2021
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD OPERATING ACTIVITIES:
$ 27,505 $ 34,155 $ 36,410 $ 42,377 $ 22,965 $ 37,842
Net income
5,243
7,778
7,778
15,885
13,180
29,438
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other
5,748
8,038
11,110
15,546
22,843
29,687
Stock-based compensation
2,601
3,591
4,358
5,897
7,977
10,747
Other operating expense (income), net
282
18
348
48
445
(372)
Other expense (income), net
(769)
(1,258)
(204)
(2,714)
(310)
(5,092)
Deferred income taxes
465
701
787
2,404
1,063
1,063
Changes in operating assets and liabilities:
Inventories
(672)
(209)
720
(513)
(1,176)
(4,082)
Accounts receivable, net and other Accounts payable
(2,854) 8,616
(4,462) 47
(1,592) 573
(6,717) (8,219)
(6,680) 11,482
(13,294) 8,689
Accrued expenses and other
1,699
(1,685)
(1,063)
(5,745)
1,110
1,071
Unearned revenue
247
156
854
1,056
1,286
1,467
Net cash provided by (used in) operating activities
20,606
12,715
23,669
16,928
51,220
59,322
INVESTING ACTIVITIES:
Purchases of property and equipment
(7,459) (14,288) (14,254) (26,370) (24,263) (52,256)
Proceeds from property and equipment sales and incentives
844
1,300
2,212
2,195
4,895
5,080
Acquisitions, net of cash acquired, and other Sales and maturities of marketable securities
(118) 8,138
(320) 13,213
(210) 19,764
(950) 31,039
(1,385) 34,641
(3,066) 61,512
Purchases of marketable securities
(19,209) (21,985) (34,210) (36,660) (49,196) (74,929)
Net cash provided by (used in) investing activities
(17,804) (22,080) (26,698) (30,746) (35,308) (63,659)
FINANCING ACTIVITIES:
Proceeds from short-term debt, and other
2,433
1,176
3,050
3,102
4,145
6,848
Repayments of short-term debt, and other
(1,906)
(1,176)
(2,537)
(3,177)
(3,693)
(6,817)
Proceeds from long-term debt
9,918
18,516
9,994
18,627
10,699
19,158
Repayments of long-term debt Principal repayments of finance leases
(205) (2,817)
(41) (2,804)
(241) (5,417)
(80) (6,210)
(1,305) (10,504)
(1,392) (11,435)
Principal repayments of financing obligations
(15)
(28)
(32)
(95)
(56)
(116)
Net cash provided by (used in) financing activities
7,408
15,643
4,817
12,167
(714)
6,246
Foreign currency effect on cash, cash equivalents, and restricted cash
127
234
(356)
(59)
(321)
916
Net increase (decrease) in cash, cash equivalents, and restricted cash CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD
10,337
6,512
1,432
(1,710)
14,877
2,825
$ 37,842 $ 40,667 $ 37,842 $ 40,667 $ 37,842 $ 40,667
See accompanying notes to consolidated financial statements.
3
Table of Contents
, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data) (unaudited)
Net product sales Net service sales
Total net sales Operating expenses:
Cost of sales Fulfillment Technology and content Marketing General and administrative Other operating expense (income), net
Total operating expenses Operating income Interest income Interest expense Other income (expense), net
Total non-operating income (expense) Income before income taxes Provision for income taxes Equity-method investment activity, net of tax Net income
Basic earnings per share
Diluted earnings per share
Weighted-average shares used in computation of earnings per share: Basic Diluted
Three Months Ended June 30,
2020
2021
$
50,244 $
58,004 $
38,668
55,076
88,912
113,080
52,660 13,806 10,388 4,345 1,580
290 83,069 5,843
135 (403) 646 378 6,221 (984)
6
64,176 17,638 13,871 7,524 2,158
11 105,378
7,702 106 (435)
1,261 932
8,634 (868)
12
$
5,243 $
7,778 $
$
10.50 $
15.40 $
$
10.30 $
15.12 $
500
505
509
514
See accompanying notes to consolidated financial statements.
Six Months Ended June 30,
2020
2021
92,085 $
115,495
72,279
106,103
164,364
221,598
96,917 25,337 19,713 9,173 3,032
360 154,532
9,832 337 (805) 240 (228)
9,604 (1,729)
(97)
7,778 $
15.59 $
15.32 $
126,579 34,168 26,359 13,731 4,145 49
205,031 16,567 211 (834) 2,958 2,335 18,902 (3,024) 7
15,885
31.49
30.92
499
505
508
514
4
Table of Contents
, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions) (unaudited)
Net income Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $(8), $(17), $13 and $(4) Net change in unrealized gains (losses) on available-for-sale debt securities:
Unrealized gains (losses), net of tax of $(73), $(2), $(61) and $28 Reclassification adjustment for losses (gains) included in "Other income (expense), net," net of tax of $0, $4, $0 and $8
Net unrealized gains (losses) on available-for-sale debt securities Total other comprehensive income (loss)
Comprehensive income
Three Months Ended June 30,
2020
2021
$
5,243 $
7,778 $
207
159
407
(6)
(6)
(12)
401
(18)
608
141
$
5,851 $
7,919 $
See accompanying notes to consolidated financial statements.
Six Months Ended June 30,
2020
2021
7,778 $
15,885
(668)
(215)
205
(6) 199 (469) 7,309 $
(104)
(26) (130) (345) 15,540
5
Table of Contents
, INC. CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
Current assets:
ASSETS
Cash and cash equivalents
Marketable securities
Inventories
Accounts receivable, net and other
Total current assets
Property and equipment, net
Operating leases
Goodwill Other assets
Total assets
Current liabilities:
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable
Accrued expenses and other
Unearned revenue
Total current liabilities
Long-term lease liabilities
Long-term debt
Other long-term liabilities
Commitments and contingencies (Note 4) Stockholders' equity:
Preferred stock, $0.01 par value:
Authorized shares -- 500
Issued and outstanding shares -- none
Common stock, $0.01 par value:
Authorized shares -- 5,000
Issued shares -- 527 and 530 Outstanding shares -- 503 and 506
Treasury stock, at cost
Additional paid-in capital
Accumulated other comprehensive income (loss)
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
See accompanying notes to consolidated financial statements.
December 31, 2020
June 30, 2021 (unaudited)
$
42,122 $
40,380
42,274
49,514
23,795
24,119
24,542
26,835
132,733
140,848
113,114
133,502
37,553
43,346
15,017
15,350
22,778
27,273
$
321,195 $
360,319
$
72,539 $
66,090
44,138
41,007
9,708
10,695
126,385
117,792
52,573
56,297
31,816
50,279
17,017
21,148
--
--
5
5
(1,837)
(1,837)
42,865
48,724
(180)
(525)
52,551
68,436
93,404
114,803
$
321,195 $
360,319
6
Table of Contents
, 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 2021 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 2020 Annual Report on Form 10-K.
Principles of Consolidation
The consolidated financial statements include the accounts of , 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, and valuation and impairment of investments. Actual results could differ materially from these estimates.
Supplemental Cash Flow Information
The following table shows supplemental cash flow information (in millions):
SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on debt Cash paid for operating leases Cash paid for interest on finance leases Cash paid for interest on financing obligations Cash paid for income taxes, net of refunds Assets acquired under operating leases Property and equipment acquired under finance leases Property and equipment acquired under build-to-suit arrangements
Three Months Ended June 30,
2020
2021
Six Months Ended June 30,
2020
2021
Twelve Months Ended June 30,
2020
2021
$
139 $
179 $
430 $
455 $
872 $
942
1,086
1,577
2,115
3,217
3,929
5,577
161
129
329
286
662
569
21
35
43
68
77
127
486
1,803
791
2,604
1,221
3,526
3,347
5,578
5,755
9,114
10,530
19,576
3,155
1,642
5,321
3,709
13,110
9,976
482
1,094
861
1,981
1,504
3,387
Earnings Per Share
Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weightedaverage 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.
7
Table of Contents
The following table shows the calculation of diluted shares (in millions):
Shares used in computation of basic earnings per share Total dilutive effect of outstanding stock awards Shares used in computation of diluted earnings per share
Three Months Ended June 30,
2020
2021
500
505
9
9
509
514
Six Months Ended June 30,
2020
2021
499
505
9
9
508
514
Other Income (Expense), Net Other income (expense), net, is as follows (in millions):
Marketable equity securities valuation gains (losses) Equity warrant valuation gains (losses) Upward adjustments relating to equity investments in private companies Foreign currency gains (losses) Other, net
Total other income (expense), net
Three Months Ended June 30,
Six Months Ended June 30,
2020
2021
2020
2021
$
235 $
157 $
204 $
81
418
939
266
1,244
--
31
--
1,506
13
110
(209)
79
(20)
24
(21)
48
646
1,261
240
2,958
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 $2.3 billion and $2.4 billion as of December 31, 2020 and June 30, 2021.
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, 2020 and June 30, 2021, customer receivables, net, were $14.8 billion and $16.3 billion, vendor receivables, net, were $4.8 billion and $4.2 billion, and seller receivables, net, were $381 million and $646 million. 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 as of December 31, 2020 and June 30, 2021.
Digital Video and Music Content
The total capitalized costs of video, which is primarily released content, and music as of December 31, 2020 and June 30, 2021 were $6.8 billion and $8.6 billion. Total video and music expense was $2.8 billion and $3.1 billion in Q2 2020 and Q2 2021, and $5.2 billion and $6.2 billion for the six months ended June 30, 2020 and 2021.
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, 2020 was $11.6 billion, of which $6.7 billion was recognized as revenue during the six months ended June 30, 2021. Included in "Other long-term liabilities" on our consolidated balance sheets was $1.9 billion of unearned revenue as of December 31, 2020 and June 30, 2021.
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 $60.7 billion as of June 30, 2021. The weighted-average remaining life of our long-term contracts is 3.6 years. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term.
8
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- inc
- securities and exchange commission october 24 2022
- enforcement release july 8 2020 ofac settles with inc
- q4 2020 financial results conference call slides
- rule 14a 8 no action letter sec
- notice of 2020 annual meeting of shareholders proxy statement
- securities and exchange commission october 14 2020
- form sd sec
- 2020 calendar of filing deadlines and sec holidays
- g á¢v¡ h qÝmÆ à´
Related searches
- amazon inc annual report 2018
- amazon inc annual report
- amazon inc balance sheet
- amazon inc 10 k
- amazon fulfillment services inc address
- amazon com open new account
- amazon com shopping amazon
- amazon inc 10k
- amazon inc financial statements
- amazon web services inc address
- amazon com online shopping
- amazon com my account