Stockholders' Equity

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

Stock Repurchase Activity

In February 2016, the Board of Directors authorized a program to repurchase up to $5.0 billion of our common stock, with no fixed expiration. This stock repurchase authorization replaced the previous $2.0 billion stock repurchase authorization, approved by the Board of Directors in 2010. There were no repurchases of common stock in Q1 2016 or Q1 2017.

Stock Award Activity

Common shares outstanding plus shares underlying outstanding stock awards totaled 497 million as of December 31, 2016, and March 31, 2017. 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,
	2016		2017
Cost of sales (1)	$	—	$	8
Fulfillment	116		163
Marketing	56		94
Technology and content	317		441
General and administrative	55		86
Total stock-based compensation expense	$	544	$	792

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(1) Beginning in Q3 2016, stock-based compensation expense was recorded to cost of sales for eligible employees providing delivery services.

The following table summarizes our restricted stock unit activity for the three months ended March 31, 2017 (in millions):

	Number of Units		Weighted-Average Grant-Date Fair Value
Outstanding as of December 31, 2016	19.8		$	506
Units granted	1.2		844
Units vested	(1.1	)	335
Units forfeited	(0.4	)	541
Outstanding as of March 31, 2017	19.5		$	536

Scheduled vesting for outstanding restricted stock units as of March 31, 2017, is as follows (in millions):

	Nine Months Ended December 31,	Year Ended December 31,
	2017	2018	2019	2020	2021	Thereafter	Total
Scheduled vesting—restricted stock units	5.9	7.1	3.9	2.0	0.3	0.3	19.5

As of March 31, 2017, there was $4.5 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements. This compensation is recognized on an accelerated basis with approximately half of the compensation expected to be expensed in the next twelve months, and has a weighted-average recognition period of 1.1 years.