Stock-Based Compensation Expense |
Stock-based compensation expense is as follows (in millions): | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2018 | | 2019 | | 2018 | | 2019 | Cost of sales | $ | 19 |
| | $ | 43 |
| | $ | 34 |
| | $ | 67 |
| Fulfillment | 320 |
| | 360 |
| | 564 |
| | 594 |
| Marketing | 190 |
| | 307 |
| | 351 |
| | 516 |
| Technology and content | 788 |
| | 1,077 |
| | 1,419 |
| | 1,752 |
| General and administrative | 151 |
| | 184 |
| | 284 |
| | 316 |
| Total stock-based compensation expense | $ | 1,468 |
| | $ | 1,971 |
| | $ | 2,652 |
| | $ | 3,245 |
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Nonvested Restricted Stock Units Activity |
The following table summarizes our restricted stock unit activity for the six months ended June 30, 2019 (in millions): | | | | | | | | | Number of Units | | Weighted-Average Grant-Date Fair Value | Outstanding as of December 31, 2018 | 15.9 |
| | $ | 1,024 |
| Units granted | 4.6 |
| | 1,807 |
| Units vested | (3.4 | ) | | 789 |
| Units forfeited | (0.9 | ) | | 1,120 |
| Outstanding as of June 30, 2019 | 16.2 |
| | $ | 1,287 |
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Scheduled Vesting Restricted Stock Unit Activity |
Scheduled vesting for outstanding restricted stock units as of June 30, 2019, is as follows (in millions): | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended December 31, | | Year Ended December 31, | | | | | | 2019 | | 2020 | | 2021 | | 2022 | | 2023 | | Thereafter | | Total | Scheduled vesting—restricted stock units | 3.2 |
| | 6.1 |
| | 4.9 |
| | 1.4 |
| | 0.4 |
| | 0.2 |
| | 16.2 |
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Changes in Stockholders Equity |
The following table shows the changes in stockholders’ equity (in millions): | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2018 | | 2019 | | 2018 | | 2019 | Total beginning stockholders’ equity | $ | 31,463 |
| | $ | 48,410 |
| | $ | 27,709 |
| | $ | 43,549 |
| | | | | | | | | Beginning and ending common stock | 5 |
| | 5 |
| | 5 |
| | 5 |
| | | | | | | | | Beginning and ending treasury stock | (1,837 | ) | | (1,837 | ) | | (1,837 | ) | | (1,837 | ) | | | | | | | | | Beginning additional paid-in capital | 22,563 |
| | 28,059 |
| | 21,389 |
| | 26,791 |
| Stock-based compensation and issuance of employee benefit plan stock | 1,465 |
| | 1,976 |
| | 2,639 |
| | 3,244 |
| Ending additional paid-in capital | 24,028 |
| | 30,035 |
| | 24,028 |
| | 30,035 |
| | | | | | | | | Beginning accumulated other comprehensive loss | (467 | ) | | (1,010 | ) | | (484 | ) | | (1,035 | ) | Other comprehensive income (loss) | (467 | ) | | 50 |
| | (450 | ) | | 75 |
| Ending accumulated other comprehensive loss | (934 | ) | | (960 | ) | | (934 | ) | | (960 | ) | | | | | | | | | Beginning retained earnings | 11,199 |
| | 23,193 |
| | 8,636 |
| | 19,625 |
| Cumulative effect of changes in accounting principles (1) | — |
| | — |
| | 934 |
| | 7 |
| Net income | 2,534 |
| | 2,625 |
| | 4,163 |
| | 6,186 |
| Ending retained earnings | 13,733 |
| | 25,818 |
| | 13,733 |
| | 25,818 |
| | | | | | | | | Total ending stockholders’ equity | $ | 34,995 |
| | $ | 53,061 |
| | $ | 34,995 |
| | $ | 53,061 |
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___________________(1) We recorded cumulative effect adjustments related to the new revenue and income tax standards in Q1 2018 and the new lease standard in Q1 2019. See Item 1 of Part I, “Financial Statements — Note 1 — Accounting Policies — Accounting Pronouncements Recently Adopted” for additional information.
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