AMAZON.COM, INC.

CONSOLIDATED BALANCE SHEETS

(Accounts in millions, except per share data)

Fiscal Period 2021 2020 2019

Cash and cash equivalents 36,220 42,122 36,092
Marketable securities 59,829 42,274 18,929
Inventories 32,640 23,795 20,497
Accounts receivable, net and other 32,891 24,542 20,816
Total current assets 161,580 132,733 96,334
Property and equipment, net 160,281 113,114 72,705
Operating leases 56,082 37,553 25,141
Goodwill 15,371 15,017 14,754
Other assets 27,235 22,778 16,314
Total assets 420,549 321,195 225,248
Accounts payable 78,664 72,539 47,183
Accrued expenses and other 51,775 44,138 32,439
Unearned revenue 11,827 9,708 8,190
Total current liabilities 142,266 126,385 87,812
Long-term lease liabilities 67,651 52,573 39,791
Long-term debt 48,744 31,816 23,414
Other long-term liabilities 23,643 17,017 12,171
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock, $0.01 par value:
: Authorized shares — 500
Issued and outstanding shares — none 0 0
Common stock, $0.01 par value:
Authorized shares — 5,000
Issued shares — 527 and 532
Outstanding shares — 503 and 509 5 5 5
Treasury stock, at cost (1,837) (1,837) (1,837)
Additional paid-in capital 55,538 42,865 33,658
Accumulated other comprehensive income (loss) (1,376) (180) (986)
Retained earnings 85,915 52,551 31,220
Total stockholders’ equity 138,245 93,404 62,060
Total liabilities and stockholders’ equity 420,549 321,195 225,248
 Growth rate
2021-2020 2020-2019
-14% 17%
42% 123%
37% 16%
34% 18%
22% 38%
42% 56%
49% 49%
2% 2%
20% 40%
31% 43%
8% 54%
17% 36%
22% 19%
13% 44%
29% 32%
53% 36%
39% 40%

0% 0%
0% 0%
30% 27%
664% -82%
63% 68%
48% 51%
31% 43%
 AMAZON.COM INC
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Accounts in millions)

Fiscal Period
Net income
Other comprehensive income (loss):
Net change in foreign currency translation adjustments:
Foreign currency translation adjustments net of tax of $(5) $(36) and $47
Reclassification adjustment for foreign currency translation included in “Other operating expense (income) net” net of
tax of $29 $0 and $0
Net foreign currency translation adjustments
Net change in unrealized gains (losses) on available-for-sale debt securities:
Unrealized gains (losses) net of tax of $(12) $(83) and $72
Reclassification adjustment for losses (gains) included in “Other income (expense) net” net of tax of $0 $8 and $13
Net unrealized gains (losses) on available-for-sale debt securities
Total other comprehensive income (loss)
Comprehensive income
E

Growth rate Our total unearned revenu

2021 2020 2019 2021-20202020-2019 during the year ended Dec
33,364 21,331 11,588 56% 84% Included in “Other long-ter
unearned revenue as of De

(819) 561 78

0 0 (108)
(819) 561 (30)

(343) 273 83
(34) (28) (4)
(377) 245 79
(1,196) 806 49
32,168 22,137 11,637
 Our total unearned revenue as of December 31, 2020 was $11.6 billion, of which $9.3 billion was recognized as
during the year ended December 31, 2021 and our total unearned revenue as of December 31, 2021 was $14.0
Included in “Other long-term liabilities” on our consolidated balance sheets was $1.9 billion and $2.2 billion of
unearned revenue as of December 31, 2020 and 2021.

Unearned Revenue
Ending Balance Dec. 2020 included in Unearned revenu 9,708
Ending Balance Dec. 2020 included in long-term liabilities 1,900 (1.9 Billion)
Ending Balance Dec. 2020 total unearned revenue 11,608

Recognised unearned revenue during 2021 9,300

 $9.3 billion was recognized as revenue
December 31, 2021 was $14.0 billion.
$1.9 billion and $2.2 billion of
 AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Accounts in millions, except per share data)

Fiscal Period 2021 2020

Net product sales 241,787 215,915
Net service sales 228,035 170,149
Total net sales 469,822 386,064
Operating expenses:
Cost of sales 272,344 233,307
Fulfillment 75,111 58,517
Technology and content 56,052 42,740
Marketing 32,551 22,008
General and administrative 8,823 6,668
Other operating expense (income), net 62 (75)
Total operating expenses 444,943 363,165
Operating income 24,879 22,899
Interest income 448 555
Interest expense (1,809) (1,647)
Other income (expense), net 14,633 2,371
Total non-operating income (expense) 13,272 1,279
Income before income taxes 38,151 24,178
Provision for income taxes (4,791) (2,863)
Equity-method investment activity, net of tax 4 16
Net income 33,364 21,331
Basic earnings per share 65.96 42.64
Diluted earnings per share 64.81 41.83
Weighted-average shares used in computation of earnings per share:
Basic 506 500
Diluted 515 510
 2019
160,408
120,114
280,522

165,536
40,232
35,931
18,878
5,203
201
265,981
14,541
832
(1,600)
203
(565)
13,976
(2,374)
(14)
11,588
23.46
23.01

494
504
 AMAZON.COM INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Accounts in millions)

Additional
Shares Amount Treasury Stock
Paid-In Capital

Balance as of December 31 2019 498 5 (1,837) 33,658

Net income
Other comprehensive income (loss)
Stock-based compensation and issuance of employee
benefit plan stock 5 9,207
Balance as of December 31 2020 503 5 (1,837) 42,865
Net income
Other comprehensive income (loss)
Stock-based compensation and issuance of employee
benefit plan stock 6 12,673
Balance as of December 31 2021 509 5 (1,837) 55,538
DERS’ EQUITY

Accumulated Other Total

Retained
Comprehensive Income Stockholders’
Earnings
(Loss) Equity
(986) 31,220 62,060
21,331 21,331
806 806

9,207
(180) 52,551 93,404
33,364 33,364
(1,196) (1,196)

12,673
(1,376) 85,915 138,245
 AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Accounts in millions)

Fiscal Period 2021

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD 42,377
OPERATING ACTIVITIES:
Net income 33,364
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 34,296
Stock-based compensation 12,757
Other operating expense (income), net 137
Other expense (income), net (14,306)
Deferred income taxes (310)
Changes in operating assets and liabilities:
Inventories (9,487)
Accounts receivable, net and other (18,163)
Accounts payable 3,602
Accrued expenses and other 2,123
Unearned revenue 2,314
Net cash provided by (used in) operating activities 46,327

INVESTING ACTIVITIES:
Purchases of property and equipment (61,053)
Proceeds from property and equipment sales and incentives 5,657
Acquisitions, net of cash acquired, and other (1,985)
Sales and maturities of marketable securities 59,384
Purchases of marketable securities (60,157)
Net cash provided by (used in) investing activities (58,154)

FINANCING ACTIVITIES
Proceeds from short-term debt, and other 7,956
Repayments of short-term debt, and other (7,753)
Proceeds from long-term debt 19,003
Repayments of long-term debt (1,590)
Principal repayments of finance leases (11,163)
Principal repayments of financing obligations (162)
Net cash provided by (used in) financing activities 6,291
Foreign currency effect on cash, cash equivalents, and restricted cash (364)
Net increase (decrease) in cash, cash equivalents, and restricted cash (5,900)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD 36,477
WS

2020 2019
3,641 32,173

21,331 11,588

25,251 21,789
9,208 6,864
(71) 164
(2,582) (249)
(554) 796

(2,849) (3,278)
(8,169) (7,681)
17,480 8,193.00
5,754 (1,383)
1,265 1,711
66,064 38,514

(4,014) (16,861)
5,096 4,172
(2,325) (2,461)
50,237 22,681
(72,479) (31,812) 60,157 (59,384)
(59,611) (24,281)

6,796 1,402
(6,177) (1,518)
10,525 871
(1,553) (1,166)
(10,642) (9,628)
(53) (27)
(1,104) (10,066)
618 70
5,967 4,237
42,377 36,410
Supplemental Cash Flow Information (Accounts in millions)
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 lease arrangements

Consolidated Statements of Cash Flows Reconciliation

Cash and cash equivalents

Restricted cash included in accounts receivable, net and other
Restricted cash included in other assets
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows
 2021 2020 2019
1,098 916 875
6,722 4,475 3,361
521 612 647
153 102 39

3,688 1,713 881

25,369 16,217 7,870
7,061 11,588 13,723
5,616 2,267 1,362

31-Dec-21 31-Dec-20
36,220 42,122
242 233
15 22
36,477 42,377
 AMAZON.COM, INC.
Notes

Note 3 — PROPERTY AND EQUIPMENT

Property and equipment, at cost, consisted of the following (in millions):
2021 2020
Gross property and equipment (1):
Land and buildings 81,104 57,324
Equipment 12,868 97,224
Other assets 4,118 377
Construction in progress 24,895 15,228
Gross property and equipment 2,388,000 173,548
Total accumulated depreciation and 78,519 60,434
Total property and equipment, net 160,281 113,114

Depreciation and amortization expense on property and equipment was $15.1 billion, $16.2 billion, and $22.9 billion which in
amortization of property and equipment acquired under finance leases of $10.1 billion, $8.5 billion, and $9.9 billion for 2019,
2021.

Total depreciation and amortization expense, by segment, is as follows (in millions):

2021 2020 2019
North America 9,234 6,421 5,106
International 3,022 2,215 1,886
AWS 10,653 7,603 8,158
Consolidated 22,909 16,239 15,150

Note 4 — LEASES

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 $68.1 billion and $72.2
billion as of December 31, 2020 and 2021. Accumulated amortization associated with finance
leases was $36.5 billion and $43.4 billion as of December 31, 2020 and 2021.

Finance lease cost: 2021 2020

amortization on finance lease 9857 8,452
Interest on finance lease 473 617
Finance lease cost 10330 9,069

Finance Lease (according notes) 2021 2020

Gross Finance Lease 72,200 68,100

Accumulated amortization 34,400 36,500
Net Finance Lease 37,800 31,600

Note 5 — ACQUISITIONS, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS

During 2021, we acquired

certain companies for an
aggregate purchase price of
$496 million, net of cash
acquired.
Goodwill Consolidated
Goodwill - January 1, 2020 14,754
New acquisitions 212
Other adjustments (1) 51
Goodwill - December 31, 2020 15,017
New acquisitions 366
Other adjustments (1) (12)
Goodwill - December 31, 2021 15,371

Intangible Assets (in millions) December 31,

2021
Acquired Intangibles, Acquired Intangibles,
Accumulated
Amortization (1)
Gross (1) Net
Finite-lived intangible
assets (2):
Marketing-related 2,286 (548) 1,738
Contract-based 2,327 (565) 1,762
Technology- and content-based 976 (610) 366
Customer-related 197 (103) 94
Total finite-lived intangible assets 5,786 (1,826) 3,960

IPR&D and other (3) 1,147 1,147

Total acquired intangibles 6,933 (1,826) 5,107

Amortization expense for acquired finite-lived intangibles was $565 million, $509 million, and $512 million in
2019, 2020, and 2021.

2021 2020 2019

Amortization expense for acquierd fin 512 509 565
Allowance

2021 2020 2019

The allowance for doubtful account 1,100 1,100 718
Additions to the allowance 1,000 1,400 1,000
deductions to the allowance 1,100 1,000 793

Marketable Securities

Dec. 31. 2021

Gross
Cost or Amortized Unrealized Gross Unrealized
Cost Gains Losses
Cash 10942
Level 1 securities:
Money market funds 20312
Equity securities (1)
Level 2 securities:
Foreign government and agency secu 181
U.S. government and agency securit 4316 9 -25
Corporate debt securities 35810 75 -121
Asset-backed securities 6763 7 -32
Other fixed income securities 688 2 -4
Equity securities (1)
Total 79012 93 -182

Less: Restricted cash, cash equivalents, and marketable

securities (2)

Total cash, cash equivalents, and marketable securities

The related unrealized gain (loss) recorded in “Other income (expense), net”
2021 2020 2019
1160 448 4

2021 2020 2019

Realized gains 85 92 11
Realized losses 38 56 7

Long-term Debt
 Stated Interest Effective Interest
in millions Maturities (1) Rates Rates
2012 Notes issuance of $3.0 billion 2022 2.50% 2.66%
2014 Notes issuance of $6.0 billion 2021 - 2044 3.30% - 4.95% 3.43% - 5.11%
2017 Notes issuance of $17.0 billion2023 - 2057 2.40% - 5.20% 2.56% - 4.33%
2020 Notes issuance of $10.0 billion2023 - 2060 0.40% - 2.70% 0.56% - 2.77%
2021 Notes issuance of $18.5 billion2023-2061 0.25% - 3.25% 0.35% - 3.31%
Credit Facility
Other long-term debt
Total face value of long-term debt

Unamortized discount and issuance costs, net

Less current portion of long-term debt
Long-term debt
 AMAZON.COM, INC.
Notes

$16.2 billion, and $22.9 billion which includes

, $8.5 billion, and $9.9 billion for 2019, 2020, and

he end of
72.2
finance
 December 31,
2020
Acquired Intangibles, Acquired Intangibles,
Accumulated
Amortization (1) Weighted Average Life
Gross (1) Net Remaining

2,289 (445) 1,844 20.0

1,917 (418) 1,499 11.0
948 (555) 393 3.3
179 (77) 102 4.0
5,333 (1,495) 3,838 14.4

1,143 1,143

6,476 (1,495) 4,981

9 million, and $512 million in

31. 2021

Total Estimated Fair

Value
10942

20312
1646

181
4300
35764
6738
686
15740
96309

-260

96049
31-Dec-20 31-Dec-21
1250 1250
5000 4000
16000 16000
10000 10000
0 18500
338 803
586 0
33174 50553

-203 -318
-1155 -1491
31816 48744
 AMAZON.COM, INC.
T-Accounts

Assets

+ Cash and cash equivalents (A) -

42,377 6,291
46,327 (58,154)
(364)
(257)
36,220
-

+ Marketable Securities -
42,274
60,157
694
47
59,384
43788
16,041

+ Finished Goods Inventory (A) -

23,795
304,610
295,765 In Comprehensive Income Statement COGS includes D/A in assets,
32,640
-

+ Accounts Receivable (Net) and

other (A) -
24,542
469822
242
1000
460,715 calculated collections
32,891
-

- ADA (XA) +
1100
1000
1400
700
 + PP&E (net) (A) -
113,114
61,053
14,680 Assumed non-cash purchases
22909
5657
160,281
-

- Accumulated Depreciation PPE

(XA) +
60434
4824
22909
78519
-

+ Finance Lease PPE (net) -

31,600
7,061
8,996 Non-cash acquired and capitalized assets during acquisition
9,857
37,800
-

+ Goodwill (A) -
15,017
354
15,371
-

Liabilities

- Accounts Payable (L) +

72539
304,610
298,485 calculated payments to suppliers
78,664
-
 - Unearned Revenue (L) +
11,608
9,300
9,081
11,827
-

- Long Term Debt (L) +

31,816
18,500
336
1,000
121
115
48,744
-

Srockholder's Equity

- Retained earning (SE) +

52,551
33,364
85,915
-

- Accumulated other
comprehensive income(SE) +
(180)
(1,196)
(1,376)
-

- Paid in Capital (SE) +

42,865
12,673
55,538
-

+ Treasury stock (XSE) -

1837

1837
-
S includes D/A in assets, 295 765 is COGS excluding depreciation/Amortization Expense.
during acquisition
Inventory - The inventory valuation allowance,
representing a write-down of inventory, was $2.3 billion
and $2.6 billion as of December 31, 2020 and 2021.

Accounts Receivable, Net and Other - Accounts Receivable, Net and Other Included in “Accounts receivable, ne
balance sheets are amounts primarily related to customers, vendors, and sellers. As of December 31, 2020 and
$14.8 billion and $20.2 billion, vendor receivables, net, were $4.8 billion and $5.3 billion, and seller receivables,
Seller receivables are amounts due from sellers related to our seller lending program, which provides funding to
We estimate losses on receivables based on expected losses, including our historical experience of actual losses
and written-off when it is probable that all contractual payments due will not be collected in accordance with th
allowance for doubtful accounts was $718 million, $1.1 billion, and $1.1 billion as of December 31, 2019, 2020,
were $1.0 billion, $1.4 billion, and $1.0 billion, and deductions to the allowance were $793 million, $1.0 billion,
2021.

Return allowances - which reduce revenue and cost of sales, are estimated using historical experience. Liabilitie
“Accrued expenses and other” and were $712 million, $859 million, and $1.0 billion as of December 31, 2019, 2
allowance were $2.5 billion, $3.5 billion, and $5.1 billion and deductions from the allowance were $2.5 billion, $
2020, and 2021. Included in “Inventories” on our consolidated balance sheets are assets totaling $629 million, $
December 31, 2019, 2020, and 2021, for the rights to recover products from customers associated with our liab

Investments - Equity investments in private companies for which we do not have the ability to exercise significa
with adjustments for observable changes in prices or impairments, and are classified as “Other assets” on our c
adjustments recognized in “Other income (expense), net” on our consolidated statements of operations. Each r
qualitative assessment to evaluate whether the investment is impaired. Our assessment includes a review of rec
recent sales/acquisitions of the investee securities, and other publicly available data. If the investment is impair
fair value. As of December 31, 2020 and 2021, these investments had a carrying value of $2.7 billion and $603 m

Accrued Expenses and Other - Included in “Accrued expenses and other” on our consolidated
balance sheets are liabilities primarily related to leases and asset retirement obligations, tax-related
liabilities, payroll and related expenses, unredeemed gift cards, customer liabilities, marketing
liabilities, current debt, acquired digital media content, and other operating expenses. As of
December 31, 2020 and 2021, our liabilities for payroll related expenses were $7.6 billion and $9.1
billion and our liabilities for unredeemed gift cards were $4.7 billion and $5.2 billion. We reduce the
liability for a gift card when redeemed by a customer. The portion of gift cards that we do not expect
to be redeemed is recognized based on customer usage patterns.
Foreign Currency We have internationally-focused stores for which the net sales generated, as well as mo
operations, are denominated in local functional currencies. The functional currency of our subsidiaries th
as the local currency. Assets and liabilities of these subsidiaries are translated into U.S. Dollars at period-e
translated at average rates prevailing throughout the period. Translation adjustments are included in “Acc
component of stockholders’ equity, and in the “Foreign currency effect on cash, cash equivalents, and res
Transaction gains and losses including intercompany transactions denominated in a currency other than t
“Other income (expense), net” on our consolidated statements of operations. In connection with the sett
recorded gains (losses) of $(95) million, $(118) million, and $19 million in 2019, 2020, and 2021.
 d in “Accounts receivable, net and other” on our consolidated
s of December 31, 2020 and 2021, customer receivables, net, were
billion, and seller receivables, net, were $381 million and $1.0 billion.
m, which provides funding to sellers primarily to procure inventory.
al experience of actual losses. Receivables are considered impaired
ollected in accordance with the terms of the agreement. The
of December 31, 2019, 2020, and 2021. Additions to the allowance
ere $793 million, $1.0 billion, and $1.1 billion in 2019, 2020, and

istorical experience. Liabilities for return allowances are included in

n as of December 31, 2019, 2020, and 2021. Additions to the
allowance were $2.5 billion, $3.6 billion, and $4.9 billion in 2019,
assets totaling $629 million, $852 million, and $882 million as of
mers associated with our liabilities for return allowances.

he ability to exercise significant influence are accounted for at cost,

ed as “Other assets” on our consolidated balance sheets with
ements of operations. Each reporting period, we perform a
ment includes a review of recent operating results and trends,
a. If the investment is impaired, we write it down to its estimated
lue of $2.7 billion and $603 million.

onsolidated
tions, tax-related
, marketing
ses. As of
billion and $9.1
n. We reduce the
we do not expect
ales generated, as well as most of the related expenses directly incurred from those
urrency of our subsidiaries that either operate or support these stores is generally the same
d into U.S. Dollars at period-end foreign exchange rates, and revenues and expenses are
ustments are included in “Accumulated other comprehensive income (loss),” a separate
ash, cash equivalents, and restricted cash,” on our consolidated statements of cash flows.
ted in a currency other than the functional currency of the entity involved are included in
s. In connection with the settlement and remeasurement of intercompany balances, we
19, 2020, and 2021.
+ Accounts Receivable (A) -
Beg
Sales on Acct Collections
End

+ Goodwill (A) -
Beg
Acquisitions Write-Offs
End

+ Prepaid Advertizing (A) -

+ Prepaid Expenses (A) -
Beg
Cash Paid Exp Recognzd
End

+ Raw Materials Inventory (A) -

Beg
Purchases Transfers to WIP
End

+ Investment in Affiliates (A) -

Beg
Purchase Sales
Net Income Dividends
End

- Accumulated Depr (XA) +

Beg
A/D on Disposals
Depr Exp (Notes)
End
 (+/-)(dr) ASSET ACCOUNTS (-/+)(cr)

+ Accounts Receivable (A) (Gross) - + Accounts Receivable (A) (Net) -

Beg Write Offs Beg Bad Debt Exp
Net Sales Collections Net Sales Collections
End End

+ Building (A) - + Accrued Revenue (A) -

Beg Beg
Purchase Sell Accrual(Rev Cash Rec'd
End End

+ Office Supplies (A) - + PP&E (net) (A) -

Beg Beg Impairments
Purchase Used Cash Purchase Depr Exp (Notes)
End Non-Cash Pur Dispolas (InBV)
End

+ Wip Inventory (A) - + Finished Goods Inventory (A) -

Beg Beg
OVH- Factory Overhxfer to FG Transfers fm Wip COGS
DL - Direct Labor incurr3d End
xfer from Raw Mat. Used
End

+ Intangible Assets (gross) (A) - + Intangible Assets (net) (A) -

Beg Beg Amortization
Purchases Sales Purchases Sales
End End

- ADA (XA) + - LIFO Reserve (XA) +

Beg Beg
Write Off Bad Debt Exp Adj
End End
 + Notes Receivable (A) -
Beg
Loan Collections
End

+ Deffered Expense (A) -

Beg
Cash Paid EXP. Recognzd
End

+ PP&E (Gross) (A) -

Beg
Purchase Imparements
Non-Cash Pur Disposals
End

+ Inventory (A) -
Beg
Purchase COGS
End

+ Investment in Non-Consolidated Affiliates(A) -

Beg
Purchase Sales
NI Dividends Rec'd
End