# migrations

dir: embeddings_queue
filename: 00001-embeddings.sqlite.sql
hash: d3755dfd232be8e8301f4d7fcfb3a486
sql:
CREATE TABLE embeddings_queue (
    seq_id INTEGER PRIMARY KEY,
    created_at TIMESTAMP NOT NULL DEFAULT CURRENT_TIMESTAMP,
    operation INTEGER NOT NULL,
    topic TEXT NOT NULL,
    id TEXT NOT NULL,
    vector BLOB,
    encoding TEXT,
    metadata TEXT
);


dir: sysdb
filename: 00001-collections.sqlite.sql
hash: 38352d725ad1c16074fac420b22b4633
sql:
CREATE TABLE collections (
    id TEXT PRIMARY KEY,
    name TEXT NOT NULL,
    topic TEXT NOT NULL,
    UNIQUE (name)
);

CREATE TABLE collection_metadata (
    collection_id TEXT REFERENCES collections(id) ON DELETE CASCADE,
    key TEXT NOT NULL,
    str_value TEXT,
    int_value INTEGER,
    float_value REAL,
    PRIMARY KEY (collection_id, key)
);


dir: sysdb
filename: 00002-segments.sqlite.sql
hash: 2913cb6a503055a95f625448037e8912
sql:
CREATE TABLE segments (
    id TEXT PRIMARY KEY,
    type TEXT NOT NULL,
    scope TEXT NOT NULL,
    topic TEXT,
    collection TEXT REFERENCES collection(id)
);

CREATE TABLE segment_metadata (
    segment_id TEXT  REFERENCES segments(id) ON DELETE CASCADE,
    key TEXT NOT NULL,
    str_value TEXT,
    int_value INTEGER,
    float_value REAL,
    PRIMARY KEY (segment_id, key)
);


dir: sysdb
filename: 00004-tenants-databases.sqlite.sql
hash: 048867ce8fcdefe4023c7110e4433591
sql:
CREATE TABLE IF NOT EXISTS tenants (
    id TEXT PRIMARY KEY,
    UNIQUE (id)
);

CREATE TABLE IF NOT EXISTS databases (
    id TEXT PRIMARY KEY, -- unique globally
    name TEXT NOT NULL, -- unique per tenant
    tenant_id TEXT NOT NULL REFERENCES tenants(id) ON DELETE CASCADE,
    UNIQUE (tenant_id, name) -- Ensure that a tenant has only one database with a given name
);

CREATE TABLE IF NOT EXISTS collections_tmp (
    id TEXT PRIMARY KEY, -- unique globally
    name TEXT NOT NULL, -- unique per database
    topic TEXT NOT NULL,
    dimension INTEGER,
    database_id TEXT NOT NULL REFERENCES databases(id) ON DELETE CASCADE,
    UNIQUE (name, database_id)
);

-- Create default tenant and database
INSERT OR REPLACE INTO tenants (id) VALUES ('default_tenant'); -- The default tenant id is 'default_tenant' others are UUIDs
INSERT OR REPLACE INTO databases (id, name, tenant_id) VALUES ('00000000-0000-0000-0000-000000000000', 'default_database', 'default_tenant');

INSERT OR REPLACE INTO collections_tmp (id, name, topic, dimension, database_id)
    SELECT id, name, topic, dimension, '00000000-0000-0000-0000-000000000000' FROM collections;
DROP TABLE collections;
ALTER TABLE collections_tmp RENAME TO collections;


dir: metadb
filename: 00001-embedding-metadata.sqlite.sql
hash: 2b4cf52c4bb2676e21d6860a4409f856
sql:
CREATE TABLE embeddings (
    id INTEGER PRIMARY KEY,
    segment_id TEXT NOT NULL,
    embedding_id TEXT NOT NULL,
    seq_id BLOB NOT NULL,
    created_at TIMESTAMP NOT NULL DEFAULT CURRENT_TIMESTAMP,
    UNIQUE (segment_id, embedding_id)
);

CREATE TABLE embedding_metadata (
    id INTEGER REFERENCES embeddings(id),
    key TEXT NOT NULL,
    string_value TEXT,
    int_value INTEGER,
    float_value REAL,
    PRIMARY KEY (id, key)
);

CREATE TABLE max_seq_id (
    segment_id TEXT PRIMARY KEY,
    seq_id BLOB NOT NULL
);

CREATE VIRTUAL TABLE embedding_fulltext USING fts5(id, string_value);


dir: metadb
filename: 00002-embedding-metadata.sqlite.sql
hash: 12a570f7121b3a8ce750a2a7c36da20f
sql:
-- SQLite does not support adding check with alter table, as a result, adding a check
-- involve creating a new table and copying the data over. It is over kill with adding
-- a boolean type column. The application write to the table needs to ensure the data
-- integrity.
ALTER TABLE embedding_metadata ADD COLUMN bool_value INTEGER


dir: metadb
filename: 00003-full-text-tokenize.sqlite.sql
hash: f97ad6334aeaa8f419f01110b648b97a
sql:
CREATE VIRTUAL TABLE embedding_fulltext_search USING fts5(string_value, tokenize='trigram');
INSERT INTO embedding_fulltext_search (rowid, string_value) SELECT rowid, string_value FROM embedding_metadata;
DROP TABLE embedding_fulltext;


# embeddings_queue

created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d5a94-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 0, "chroma:document": "Table of Contents\nUNITED STATES\nSECURITIES AND EXCHANGE COMMISSION\nWashington, D.C. 20549\n ____________________________________\nFORM 10-K\n____________________________________ \n(Mark One)\n\u2612 ANNUAL  REPOR T PURSUANT  TO SECTION 13 OR 15(d) OF  THE SECURITIES EXCHANGE ACT  OF 1934\nFor the fiscal year ended December 31, 2022\nor\n\u2610 TRANSITION REPOR T PURSUANT  TO SECTION 13 OR 15(d) OF  THE SECURITIES EXCHANGE ACT  OF 1934\nFor the transition period from            to             .\nCommission File No. 000-22513\n____________________________________\nAMAZON .COM, INC.\n(Exact name of registrant as specified in its charter)\nDelaware  91-1646860\n(State or other jurisdiction of\nincorporation or organization)  (I.R.S. Employer\nIdentification No.)\n410 Terry Avenue North\nSeattle, Washington 98109-5210\n(206) 266-1000\n(Addr ess and telephone number , including ar ea code, of r egistrant\u2019 s principal executive offices)\nSecurities registered pursuant to Section 12(b) of the Act:\nTitle of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered\nCommon Stock, par value $.01 per share AMZN Nasdaq Global Select Market\nSecurities registered pursuant to Section 12(g) of the Act:\nNone\n ____________________________________\nIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  \u2612    No  \u2610\nIndicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.    Yes  \u2610    No  \u2612\nIndicate 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\nsuch 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  \u2612    No  \u2610"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d5b8e-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 0, "chroma:document": "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\nmonths (or for such shorter period that the registrant was required to submit such files).    Yes  \u2612    No  \u2610\nIndicate 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\ndefinitions of \u201clarge accelerated filer,\u201d \u201caccelerated filer,\u201d \u201csmaller reporting company,\u201d and \u201cemerging growth company\u201d in Rule 12b-2 of the Exchange Act.\nLarge accelerated filer \u2612 Accelerated filer \u2610\nNon-accelerated filer \u2610 Smaller reporting company \u2610\nEmerging growth company \u2610\nIf 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\nstandards provided pursuant to Section 13(a) of the Exchange Act. \u2610\nIndicate by check mark whether the registrant has filed a report on and attestation to its management\u2019s assessment of the effectiveness of its internal control over financial reporting under Section\n404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. \u2612\nIndicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  \u2610    No  \u2612\nAggregate market value of voting stock held by non-affiliates of the registrant as of June 30, 2022 $ 944,744,113,598 \nNumber of shares of common stock outstanding as of January 25, 2023 10,247,259,757 \n____________________________________ \nDOCUMENTS INCORPORATED BY REFERENCE\nThe information required by Part III of this Report, to the extent not set forth herein, is incorporated herein by reference from the registrant\u2019s definitive proxy statement relating to the Annual\nMeeting of Shareholders to be held in 2023, which definitive proxy statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this\nReport relates."}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d5c10-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 1, "chroma:document": "Table of Contents\nAMAZON.COM, INC.\nFORM 10-K\nFor the Fiscal Year Ended December 31, 2022\nINDEX\n \n  Page\nPART I\nItem 1. Business 3\nItem 1A. Risk Factors 6\nItem 1B. Unresolved Staff Comments 16\nItem 2. Properties 17\nItem 3. Legal Proceedings 17\nItem 4. Mine Safety Disclosures 17\nPART II\nItem 5. Market for the Registrant\u2019s Common Stock, Related Shareholder Matters, and Issuer Purchases of Equity Securities 18\nItem 6. Reserved 18\nItem 7. Management\u2019s Discussion and Analysis of Financial Condition and Results of Operations 19\nItem 7A. Quantitative and Qualitative Disclosures About Market Risk 31\nItem 8. Financial Statements and Supplementary Data 33\nItem 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 69\nItem 9A. Controls and Procedures 69\nItem 9B. Other Information 71\nItem 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 71\nPART III\nItem 10. Directors, Executive Officers, and Corporate Governance 71\nItem 11. Executive Compensation 71\nItem 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 71\nItem 13. Certain Relationships and Related Transactions, and Director Independence 71\nItem 14. Principal Accountant Fees and Services 71\nPART IV\nItem 15. Exhibits, Financial Statement Schedules 72\nItem 16. Form 10-K Summary 74\nSignatures 75\n2"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d5c74-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 2, "chroma:document": "Table of Contents\nAMAZON.COM, INC.\nPART I\nItem 1. Business\nThis Annual Report on Form 10-K and the documents incorporated herein by reference contain forward-looking statements based on expectations,\nestimates, and projections as of the date of this filing. Actual results and outcomes may differ materially from those expressed in forward-looking statements.\nSee Item 1A of Part I \u2014 \u201cRisk Factors.\u201d As used herein, \u201cAmazon.com,\u201d \u201cwe,\u201d \u201cour,\u201d and similar terms include Amazon.com, Inc. and its subsidiaries, unless\nthe context indicates otherwise.\nGeneral\nWe seek to be Earth\u2019s most customer-centric company. We are guided by four principles: customer obsession rather than competitor focus, passion for\ninvention, commitment to operational excellence, and long-term thinking. In each of our segments, we serve our primary customer sets, consisting of\nconsumers, sellers, developers, enterprises, content creators, advertisers, and employees.\nWe have organized our operations into three segments: North America, International, and Amazon Web Services (\u201cAWS\u201d). These segments reflect the\nway the Company evaluates its business performance and manages its operations. Information on our net sales is contained in Item 8 of Part II, \u201cFinancial\nStatements and Supplementary Data \u2014 Note 10 \u2014 Segment Information.\u201d\nConsumers\nWe serve consumers through our online and physical stores and focus on selection, price, and convenience. We design our stores to enable hundreds of\nmillions of unique products to be sold by us and by third parties across dozens of product categories. Customers access our offerings through our websites,\nmobile apps, Alexa, devices, streaming, and physically visiting our stores. We also manufacture and sell electronic devices, including Kindle, Fire tablet, Fire\nTV, Echo, Ring, Blink, and eero, and we develop and produce media content. We seek to offer our customers low prices, fast and free delivery, easy-to-use\nfunctionality, and timely customer service. In addition, we offer subscription services such as Amazon Prime, a membership program that includes fast, free\nshipping on millions of items, access to award-winning movies and series, and other benefits.\nWe fulfill customer orders in a number of ways, including through: North America and International fulfillment networks that we operate; co-sourced and\noutsourced arrangements in certain countries; digital delivery; and through our physical stores. We operate customer service centers globally, which are"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d5cd8-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 2, "chroma:document": "supplemented by co-sourced arrangements. See Item 2 of Part I, \u201cProperties.\u201d\nSellers\nWe offer programs that enable sellers to grow their businesses, sell their products in our stores, and fulfill orders through us. We are not the seller of\nrecord in these transactions. We earn fixed fees, a percentage of sales, per-unit activity fees, interest, or some combination thereof, for our seller programs.\nDevelopers and Enterprises\nWe serve developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a broad\nset of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.\nContent Creators\nWe offer programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish\nand sell content.\nAdvertisers\nWe provide advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video\nadvertising.\n3"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d5d3c-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 3, "chroma:document": "Table of Contents\nCompetition\nOur businesses encompass a large variety of product types, service offerings, and delivery channels. The worldwide marketplace in which we compete is\nevolving rapidly and intensely competitive, and we face a broad array of competitors from many different industry sectors around the world. Our current and\npotential competitors include: (1) physical, e-commerce, and omnichannel retailers, publishers, vendors, distributors, manufacturers, and producers of the\nproducts we offer and sell to consumers and businesses; (2) publishers, producers, and distributors of physical, digital, and interactive media of all types and all\ndistribution channels; (3) web search engines, comparison shopping websites, social networks, web portals, and other online and app-based means of\ndiscovering, using, or acquiring goods and services, either directly or in collaboration with other retailers; (4) companies that provide e-commerce services,\nincluding website development and hosting, omnichannel sales, inventory and supply chain management, advertising, fulfillment, customer service, and\npayment processing; (5) companies that provide fulfillment and logistics services for themselves or for third parties, whether online or offline; (6) companies\nthat provide information technology services or products, including on-premises or cloud-based infrastructure and other services; (7) companies that design,\nmanufacture, market, or sell consumer electronics, telecommunication, and electronic devices; (8) companies that sell grocery products online and in physical\nstores; and (9) companies that provide advertising services, whether in digital or other formats. We believe that the principal competitive factors in our retail\nbusinesses include selection, price, and convenience, including fast and reliable fulfillment. Additional competitive factors for our seller and enterprise services\ninclude the quality, speed, and reliability of our services and tools, as well as customers\u2019 ability and willingness to change business practices. Some of our\ncurrent and potential competitors have greater resources, longer histories, more customers, greater brand recognition, and greater control over inputs critical to\nour various businesses. They may secure better terms from suppliers, adopt more aggressive pricing, pursue restrictive distribution agreements that restrict our\naccess to supply, direct consumers to their own offerings instead of ours, lock-in potential customers with restrictive terms, and devote more resources to\ntechnology, infrastructure, fulfillment, and marketing. The Internet facilitates competitive entry and comparison shopping, which enhances the ability of new,"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d5da0-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 3, "chroma:document": "smaller, or lesser-known businesses to compete against us. Each of our businesses is also subject to rapid change and the development of new business models\nand the entry of new and well-funded competitors. Other companies also may enter into business combinations or alliances that strengthen their competitive\npositions.\nIntellectual Property\nWe regard our trademarks, service marks, copyrights, patents, domain names, trade dress, trade secrets, proprietary technologies, and similar intellectual\nproperty as critical to our success, and we rely on trademark, copyright, and patent law, trade-secret protection, and confidentiality and/or license agreements\nwith our employees, customers, partners, and others to protect our proprietary rights. We have registered, or applied for the registration of, a number of U.S.\nand international domain names, trademarks, service marks, and copyrights. Additionally, we have filed U.S. and international patent applications covering\ncertain of our proprietary technology.\nSeasonality\nOur business is affected by seasonality, which historically has resulted in higher sales volume during our fourth quarter, which ends December 31.\nHuman Capital\nOur employees are critical to our mission of being Earth\u2019s most customer-centric company. As of December 31, 2022, we employed approximately\n1,541,000 full-time and part-time employees. Additionally, we use independent contractors and temporary personnel to supplement our workforce. Competition\nfor qualified personnel is intense, particularly for software engineers, computer scientists, and other technical staff, and constrained labor markets have\nincreased competition for personnel across other parts of our business.\nAs we strive to be Earth\u2019s best employer, we focus on investment and innovation, inclusion and diversity, safety, and engagement to hire and develop the\nbest talent. We rely on numerous and evolving initiatives to implement these objectives and invent mechanisms for talent development, including competitive\npay and benefits, flexible work arrangements, and skills training and educational programs such as Amazon Career Choice (funded education for hourly\nemployees) and the Amazon Technical Academy (software development engineer training). Over 100,000 Amazon employees around the world have\nparticipated in Career Choice. We also continue to inspect and refine the mechanisms we use to hire, develop, evaluate, and retain our employees to promote\nequity for all candidates and employees. In addition, safety is integral to everything we do at Amazon and we continue to invest in safety improvements such as"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d5dfa-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 3, "chroma:document": "capital improvements, new safety technology, vehicle safety controls, and engineering ergonomic solutions. Our safety team is dedicated to using the science of\nsafety to solve complex problems and establish new industry best practices. We also provide mentorship and support resources to our employees, and have\ndeployed numerous programs that advance employee engagement, communication, and feedback.\n4"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d5e5e-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 4, "chroma:document": "Table of Contents\nAvailable Information\nOur investor relations website is amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make\navailable on this website, free of charge, the reports that we file or furnish with the Securities and Exchange Commission (\u201cSEC\u201d), corporate governance\ninformation (including our Code of Business Conduct and Ethics), and select press releases.\nExecutive Officers and Directors\nThe following tables set forth certain information regarding our Executive Officers and Directors as of January 25, 2023:\nInformation About Our Executive Officers\nName Age Position\nJeffrey P. Bezos 59 Executive Chair\nAndrew R. Jassy 55 President and Chief Executive Officer\nDouglas J. Herrington 56 CEO Worldwide Amazon Stores\nBrian T. Olsavsky 59 Senior Vice President and Chief Financial Officer\nShelley L. Reynolds 58 Vice President, Worldwide Controller, and Principal Accounting Officer\nAdam N. Selipsky 56 CEO Amazon Web Services\nDavid A. Zapolsky 59 Senior Vice President, General Counsel, and Secretary\nJeffrey P. Bezos. Mr. Bezos founded Amazon.com in 1994 and has served as Executive Chair since July 2021. He has served as Chair of the Board since\n1994 and served as Chief Executive Officer from May 1996 until July 2021, and as President from 1994 until June 1999 and again from October 2000 to July\n2021.\nAndrew R. Jassy. Mr. Jassy has served as President and Chief Executive Officer since July 2021, CEO Amazon Web Services from April 2016 until July\n2021, and Senior Vice President, Amazon Web Services, from April 2006 until April 2016.\nDouglas J. Herrington. Mr. Herrington has served as CEO Worldwide Amazon Stores since July 2022, Senior Vice President, North America Consumer\nfrom January 2015 to July 2022, and Senior Vice President, Consumables from May 2014 to December 2014.\nBrian T. Olsavsky. Mr. Olsavsky has served as Senior Vice President and Chief Financial Officer since June 2015, Vice President, Finance for the\nGlobal Consumer Business from December 2011 to June 2015, and numerous financial leadership roles across Amazon with global responsibility since April\n2002."}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d5f26-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 4, "chroma:document": "2002.\nShelley L. Reynolds. Ms. Reynolds has served as Vice President, Worldwide Controller, and Principal Accounting Officer since April 2007.\nAdam N. Selipsky. Mr. Selipsky has served as CEO Amazon Web Services since July 2021, Senior Vice President, Amazon Web Services from May\n2021 until July 2021, President and CEO of Tableau Software from September 2016 until May 2021, and Vice President, Marketing, Sales and Support of\nAmazon Web Services from May 2005 to September 2016.\nDavid A. Zapolsky. Mr. Zapolsky has served as Senior Vice President, General Counsel, and Secretary since May 2014, Vice President, General\nCounsel, and Secretary from September 2012 to May 2014, and as Vice President and Associate General Counsel for Litigation and Regulatory matters from\nApril 2002 until September 2012.\n5"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d5f8a-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 5, "chroma:document": "Table of Contents\nBoard of Directors\nName Age Position\nJeffrey P. Bezos 59 Executive Chair\nAndrew R. Jassy 55 President and Chief Executive Officer\nKeith B. Alexander 71 CEO, President, and Chair of IronNet, Inc.\nEdith W. Cooper 61 Former Executive Vice President, Goldman Sachs Group, Inc.\nJamie S. Gorelick 72 Partner, Wilmer Cutler Pickering Hale and Dorr LLP\nDaniel P. Huttenlocher 64 Dean, MIT Schwarzman College of Computing\nJudith A. McGrath 70 Former Chair and CEO, MTV Networks\nIndra K. Nooyi 67 Former Chief Executive Officer, PepsiCo, Inc.\nJonathan J. Rubinstein 66 Former co-CEO, Bridgewater Associates, LP\nPatricia Q. Stonesifer 66 Former President and Chief Executive Officer, Martha\u2019s Table\nWendell P. Weeks 63 Chief Executive Officer, Corning Incorporated\nItem 1A. Risk Factors\nPlease carefully consider the following discussion of significant factors, events, and uncertainties that make an investment in our securities risky. The\nevents and consequences discussed in these risk factors could, in circumstances we may or may not be able to accurately predict, recognize, or control, have a\nmaterial adverse effect on our business, growth, reputation, prospects, financial condition, operating results (including components of our financial results),\ncash flows, liquidity, and stock price. These risk factors do not identify all risks that we face; our operations could also be affected by factors, events, or\nuncertainties that are not presently known to us or that we currently do not consider to present significant risks to our operations. In addition to the factors\ndiscussed in Item 7 of Part II, \u201cManagement\u2019s Discussion and Analysis of Financial Condition and Results of Operations\u2014Overview,\u201d and in the risk factors\nbelow, global economic and geopolitical conditions and additional or unforeseen circumstances, developments, or events may give rise to or amplify many of\nthe risks discussed below. Many of the risks discussed below also impact our customers, including third-party sellers, which could indirectly have a material\nadverse effect on us.\nBusiness and Industry Risks\nWe Face Intense Competition\nOur businesses are rapidly evolving and intensely competitive, and we have many competitors across geographies, including cross-border competition,"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d5fe4-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 5, "chroma:document": "and in different industries, including physical, e-commerce, and omnichannel retail, e-commerce services, web and infrastructure computing services,\nelectronic devices, digital content, advertising, grocery, and transportation and logistics services. Some of our current and potential competitors have greater\nresources, longer histories, more customers, and/or greater brand recognition, particularly with our newly-launched products and services and in our newer\ngeographic regions. They may secure better terms from vendors, adopt more aggressive pricing, and devote more resources to technology, infrastructure,\nfulfillment, and marketing.\nCompetition continues to intensify, including with the development of new business models and the entry of new and well-funded competitors, and as\nour competitors enter into business combinations or alliances and established companies in other market segments expand to become competitive with our\nbusiness. In addition, new and enhanced technologies, including search, web and infrastructure computing services, digital content, and electronic devices\ncontinue to increase our competition. The Internet facilitates competitive entry and comparison shopping, which enhances the ability of new, smaller, or lesser\nknown businesses to compete against us. As a result of competition, our product and service offerings may not be successful, we may fail to gain or may lose\nbusiness, and we may be required to increase our spending or lower prices, any of which could materially reduce our sales and profits.\nOur Expansion into New Products, Services, Technologies, and Geographic Regions Subjects Us to Additional Risks\nWe may have limited or no experience in our newer market segments, and our customers may not adopt our product or service offerings. These offerings,\nwhich can present new and difficult technology challenges, may subject us to claims if customers of these offerings experience, or are otherwise impacted by,\nservice disruptions, delays, setbacks, or failures or quality issues. In addition, profitability, if any, in our newer activities may not meet our expectations, and we\nmay not be successful enough in these newer activities to recoup our investments in them, which investments are often significant. Failure to realize the\nbenefits of amounts we invest in new technologies, products, or services could result in the value of those investments being written down or written off. In\naddition, our sustainability initiatives may be unsuccessful for a variety of\n6"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d6048-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 6, "chroma:document": "Table of Contents\nreasons, including if we are unable to realize the expected benefits of new technologies or if we do not successfully plan or execute new strategies, which could\nharm our business or damage our reputation.\nOur International Operations Expose Us to a Number of Risks\nOur international activities are significant to our revenues and profits, and we plan to further expand internationally. In certain international market\nsegments, we have relatively little operating experience and may not benefit from any first-to-market advantages or otherwise succeed. It is costly to establish,\ndevelop, and maintain international operations and stores, and promote our brand internationally. Our international operations may not become profitable on a\nsustained basis.\nIn addition to risks described elsewhere in this section, our international sales and operations are subject to a number of risks, including:\n\u2022local economic and political conditions;\n\u2022government regulation (such as regulation of our product and service offerings and of competition); restrictive governmental actions (such as trade\nprotection measures, including export duties and quotas and custom duties and tariffs); nationalization; and restrictions on foreign ownership;\n\u2022restrictions on sales or distribution of certain products or services and uncertainty regarding liability for products, services, and content, including\nuncertainty as a result of less Internet-friendly legal systems, local laws, lack of legal precedent, and varying rules, regulations, and practices\nregarding the physical and digital distribution of media products and enforcement of intellectual property rights;\n\u2022business licensing or certification requirements, such as for imports, exports, web services, and electronic devices;\n\u2022limitations on the repatriation and investment of funds and foreign currency exchange restrictions;\n\u2022limited fulfillment and technology infrastructure;\n\u2022shorter payable and longer receivable cycles and the resultant negative impact on cash flow;\n\u2022laws and regulations regarding privacy, data use, data protection, data security, data localization, network security, consumer protection, payments,\nadvertising, and restrictions on pricing or discounts;\n\u2022lower levels of use of the Internet;\n\u2022lower levels of consumer spending and fewer opportunities for growth compared to the U.S.;\n\u2022lower levels of credit card usage and increased payment risk;\n\u2022difficulty in staffing, developing, and managing foreign operations as a result of distance, language, and cultural differences;\n\u2022different employee/employer relationships and the existence of works councils and labor unions;"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d60ac-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 6, "chroma:document": "\u2022compliance with the U.S. Foreign Corrupt Practices Act and other applicable U.S. and foreign laws prohibiting corrupt payments to government\nofficials and other third parties;\n\u2022laws and policies of the U.S. and other jurisdictions affecting trade, foreign investment, loans, and taxes; and\n\u2022geopolitical events, including war and terrorism.\nAs international physical, e-commerce, and omnichannel retail, cloud services, and other services grow, competition will intensify, including through\nadoption of evolving business models. Local companies may have a substantial competitive advantage because of their greater understanding of, and focus on,\nthe local customer, as well as their more established local brand names. The inability to hire, train, retain, and manage sufficient required personnel may limit\nour international growth.\nThe People\u2019s Republic of China (\u201cPRC\u201d) and India regulate Amazon\u2019s and its affiliates\u2019 businesses and operations in country through regulations and\nlicense requirements that may restrict (i) foreign investment in and operation of the Internet, IT infrastructure, data centers, retail, delivery, and other sectors,\n(ii) Internet content, and (iii) the sale of media and other products and services. For example, in order to meet local ownership, regulatory licensing, and\ncybersecurity requirements, we provide certain technology services in China through contractual relationships with third parties that hold PRC licenses to\nprovide services. In India, the government restricts the ownership or control of Indian companies by foreign entities involved in online multi-brand retail\ntrading activities. For www.amazon.in, we provide certain marketing tools and logistics services to third-party sellers to enable them to sell online and deliver\nto customers, and we hold indirect minority interests in entities that are third-party sellers on the www.amazon.in marketplace. Although we believe these\nstructures and activities comply with existing laws, they involve unique risks, and the PRC and India may from time to time consider and implement additional\nchanges in their regulatory, licensing, or other requirements that could impact these structures and activities. There are substantial uncertainties regarding the\ninterpretation of PRC and Indian laws and regulations, and it is possible that these governments will\n7"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d6106-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 7, "chroma:document": "Table of Contents\nultimately take a view contrary to ours. In addition, our Chinese and Indian businesses and operations may be unable to continue to operate if we or our\naffiliates are unable to access sufficient funding or, in China, enforce contractual relationships we or our affiliates have in place. Violation of any existing or\nfuture PRC, Indian, or other laws or regulations or changes in the interpretations of those laws and regulations could result in our businesses in those countries\nbeing subject to fines and other financial penalties, having licenses revoked, or being forced to restructure our operations or shut down entirely.\nThe Variability in Our Retail Business Places Increased Strain on Our Operations\nDemand for our products and services can fluctuate significantly for many reasons, including as a result of seasonality, promotions, product launches, or\nunforeseeable events, such as in response to global economic conditions such as recessionary fears or rising inflation, natural or human-caused disasters\n(including public health crises) or extreme weather (including as a result of climate change), or geopolitical events. For example, we expect a disproportionate\namount of our retail sales to occur during our fourth quarter. Our failure to stock or restock popular products in sufficient amounts such that we fail to meet\ncustomer demand could significantly affect our revenue and our future growth. When we overstock products, we may be required to take significant inventory\nmarkdowns or write-offs and incur commitment costs, which could materially reduce profitability. We regularly experience increases in our net shipping cost\ndue to complimentary upgrades, split-shipments, and additional long-zone shipments necessary to ensure timely delivery for the holiday season. If too many\ncustomers access our websites within a short period of time due to increased demand, we may experience system interruptions that make our websites\nunavailable or prevent us from efficiently fulfilling orders, which may reduce the volume of goods we offer or sell and the attractiveness of our products and\nservices. In addition, we may be unable to adequately staff our fulfillment network and customer service centers during these peak periods and delivery and\nother fulfillment companies and customer service co-sourcers may be unable to meet the seasonal demand. Risks described elsewhere in this Item 1A relating\nto fulfillment network optimization and inventory are magnified during periods of high demand.\nAs a result of holiday sales, as of December 31 of each year, our cash, cash equivalents, and marketable securities balances typically reach their highest"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d616a-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 7, "chroma:document": "level (other than as a result of cash flows provided by or used in investing and financing activities) because consumers primarily use credit cards in our stores\nand the related receivables settle quickly. Typically, there is also a corresponding increase in accounts payable as of December 31 due to inventory purchases\nand third-party seller sales. Our accounts payable balance generally declines during the first three months of the year as vendors and sellers are paid, resulting\nin a corresponding decline in our cash, cash equivalents, and marketable securities balances.\nWe Are Impacted by Fraudulent or Unlawful Activities of Sellers\nThe law relating to the liability of online service providers is currently unsettled. In addition, governmental agencies have in the past and could in the\nfuture require changes in the way this business is conducted. Under our seller programs, we maintain policies and processes designed to prevent sellers from\ncollecting payments, fraudulently or otherwise, when buyers never receive the products they ordered or when the products received are materially different\nfrom the sellers\u2019 descriptions, and to prevent sellers in our stores or through other stores from selling unlawful, counterfeit, pirated, or stolen goods, selling\ngoods in an unlawful or unethical manner, violating the proprietary rights of others, or otherwise violating our policies. When these policies and processes are\ncircumvented or fail to operate sufficiently, it can harm our business or damage our reputation and we could face civil or criminal liability for unlawful\nactivities by our sellers. Under our A-to-z Guarantee, we may reimburse customers for payments up to certain limits in these situations, and as our third-party\nseller sales grow, the cost of this program will increase and could negatively affect our operating results.\nWe Face Risks Related to Adequately Protecting Our Intellectual Property Rights and Being Accused of Infringing Intellectual Property Rights of Third\nParties\nWe regard our trademarks, service marks, copyrights, patents, trade dress, trade secrets, proprietary technology, and similar intellectual property as\ncritical to our success, and we rely on trademark, copyright, and patent law, trade secret protection, and confidentiality and/or license agreements with our\nemployees, customers, and others to protect our proprietary rights. Effective intellectual property protection is not available in every country in which our\nproducts and services are made available. We also may not be able to acquire or maintain appropriate domain names in all countries in which we do business."}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d61ce-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 7, "chroma:document": "Furthermore, regulations governing domain names may not protect our trademarks and similar proprietary rights. We may be unable to prevent third parties\nfrom acquiring domain names that are similar to, infringe upon, or diminish the value of our trademarks and other proprietary rights.\nWe are not always able to discover or determine the extent of any unauthorized use of our proprietary rights. Actions taken by third parties that license\nour proprietary rights may materially diminish the value of our proprietary rights or reputation. The protection of our intellectual property requires the\nexpenditure of significant financial and managerial resources. Moreover, the steps we take to protect our intellectual property do not always adequately protect\nour rights or prevent third\n8"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d6232-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 8, "chroma:document": "Table of Contents\nparties from infringing or misappropriating our proprietary rights. We also cannot be certain that others will not independently develop or otherwise acquire\nequivalent or superior technology or other intellectual property rights.\nWe have been subject to, and expect to continue to be subject to, claims and legal proceedings regarding alleged infringement by us of the intellectual\nproperty rights of third parties. Such claims, whether or not meritorious, have in the past, and may in the future, result in the expenditure of significant financial\nand managerial resources, injunctions against us, or significant payments for damages, including to satisfy indemnification obligations or to obtain licenses\nfrom third parties who allege that we have infringed their rights. Such licenses may not be available on terms acceptable to us or at all. These risks have been\namplified by the increase in third parties whose sole or primary business is to assert such claims.\nOur digital content offerings depend in part on effective digital rights management technology to control access to digital content. Breach or\nmalfunctioning of the digital rights management technology that we use could subject us to claims, and content providers may be unwilling to include their\ncontent in our service.\nWe Have Foreign Exchange Risk\nThe results of operations of, and certain of our intercompany balances associated with, our international stores and product and service offerings are\nexposed to foreign exchange rate fluctuations. Due to these fluctuations, operating results may differ materially from expectations, and we may record\nsignificant gains or losses on the remeasurement of intercompany balances. As we have expanded our international operations, our exposure to exchange rate\nfluctuations has increased. We also hold cash equivalents and/or marketable securities in foreign currencies such as British Pounds, Canadian Dollars, Euros,\nand Japanese Yen. When the U.S. Dollar strengthens compared to these currencies, cash equivalents, and marketable securities balances, when translated, may\nbe materially less than expected and vice versa.\nOperating Risks\nOur Expansion Places a Significant Strain on our Management, Operational, Financial, and Other Resources\nWe are continuing to rapidly and significantly expand our global operations, including increasing our product and service offerings and scaling our\ninfrastructure to support our retail and services businesses. The complexity of the current scale of our business can place significant strain on our management,\npersonnel, operations, systems, technical performance, financial resources, and internal financial control and reporting functions, and our expansion increases"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d628c-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 8, "chroma:document": "these factors. Failure to manage growth effectively could damage our reputation, limit our growth, and negatively affect our operating results.\nWe Experience Significant Fluctuations in Our Operating Results and Growth Rate\nWe are not always able to accurately forecast our growth rate. We base our expense levels and investment plans on sales estimates. A significant portion\nof our expenses and investments is fixed, and we are not always able to adjust our spending quickly enough if our sales are less than expected.\nOur revenue growth may not be sustainable, and our percentage growth rates may decrease. Our revenue and operating profit growth depends on the\ncontinued growth of demand for the products and services offered by us or our sellers, and our business is affected by general economic, business, and\ngeopolitical conditions worldwide. A softening of demand, whether caused by changes in customer preferences or a weakening of the U.S. or global\neconomies, may result in decreased revenue or growth.\nOur sales and operating results will also fluctuate for many other reasons, including due to factors described elsewhere in this section and the following:\n\u2022our ability to retain and increase sales to existing customers, attract new customers, and satisfy our customers\u2019 demands;\n\u2022our ability to retain and expand our network of sellers;\n\u2022our ability to offer products on favorable terms, manage inventory, and fulfill orders;\n\u2022the introduction of competitive stores, websites, products, services, price decreases, or improvements;\n\u2022changes in usage or adoption rates of the Internet, e-commerce, electronic devices, and web services, including outside the U.S.;\n\u2022timing, effectiveness, and costs of expansion and upgrades of our systems and infrastructure;\n\u2022the success of our geographic, service, and product line expansions;\n\u2022the extent to which we finance, and the terms of any such financing for, our current operations and future growth;\n9"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d62f0-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 9, "chroma:document": "Table of Contents\n\u2022the outcomes of legal proceedings and claims, which may include significant monetary damages or injunctive relief and could have a material\nadverse impact on our operating results;\n\u2022variations in the mix of products and services we sell;\n\u2022variations in our level of merchandise and vendor returns;\n\u2022the extent to which we offer fast and free delivery, continue to reduce prices worldwide, and provide additional benefits to our customers;\n\u2022factors affecting our reputation or brand image (including any actual or perceived inability to achieve our goals or commitments, whether related to\nsustainability, customers, employees, or other topics);\n\u2022the extent to which we invest in technology and content, fulfillment, and other expense categories;\n\u2022increases in the prices of transportation (including fuel), energy products, commodities like paper and packing supplies and hardware products, and\ntechnology infrastructure products, including as a result of inflationary pressures;\n\u2022constrained labor markets, which increase our payroll costs;\n\u2022the extent to which operators of the networks between our customers and our stores successfully charge fees to grant our customers unimpaired and\nunconstrained access to our online services;\n\u2022our ability to collect amounts owed to us when they become due;\n\u2022the extent to which new and existing technologies, or industry trends, restrict online advertising or affect our ability to customize advertising or\notherwise tailor our product and service offerings;\n\u2022the extent to which use of our services is affected by spyware, viruses, phishing and other spam emails, denial of service attacks, data theft, computer\nintrusions, outages, and similar events; and\n\u2022disruptions from natural or human-caused disasters (including public health crises) or extreme weather (including as a result of climate change),\ngeopolitical events and security issues (including terrorist attacks and armed hostilities), labor or trade disputes (including restrictive governmental\nactions impacting us and our third-party sellers in China or other foreign countries), and similar events.\nWe Face Risks Related to Successfully Optimizing and Operating Our Fulfillment Network and Data Centers\nFailures to adequately predict customer demand or otherwise optimize and operate our fulfillment network and data centers successfully from time to\ntime result in excess or insufficient fulfillment or data center capacity, service interruptions, increased costs, and impairment charges, any of which could\nmaterially harm our business. As we continue to add fulfillment and data center capability or add new businesses with different requirements, our fulfillment"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d634a-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 9, "chroma:document": "and data center networks become increasingly complex and operating them becomes more challenging. There can be no assurance that we will be able to\noperate our networks effectively.\nIn addition, failure to optimize inventory or staffing in our fulfillment network increases our net shipping cost by requiring long-zone or partial\nshipments. We and our co-sourcers may be unable to adequately staff our fulfillment network and customer service centers. For example, productivity across\nour fulfillment network currently is being affected by regional labor market and global supply chain constraints, which increase payroll costs and make it\ndifficult to hire, train, and deploy a sufficient number of people to operate our fulfillment network as efficiently as we would like.\nUnder some of our commercial agreements, we maintain the inventory of other companies, thereby increasing the complexity of tracking inventory and\noperating our fulfillment network. Our failure to properly handle such inventory or the inability of the other businesses on whose behalf we perform inventory\nfulfillment services to accurately forecast product demand may result in us being unable to secure sufficient storage space or to optimize our fulfillment\nnetwork or cause other unexpected costs and other harm to our business and reputation.\nWe rely on a limited number of shipping companies to deliver inventory to us and completed orders to our customers. An inability to negotiate acceptable\nterms with these companies or performance problems, staffing limitations, or other difficulties experienced by these companies or by our own transportation\nsystems, including as a result of labor market constraints and related costs, could negatively impact our operating results and customer experience. In addition,\nour ability to receive inbound inventory efficiently and ship completed orders to customers also may be negatively affected by natural or human-caused\ndisasters (including public health crises) or extreme weather (including as a result of climate change), geopolitical events and security issues, labor or trade\ndisputes, and similar events.\n10"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d63a4-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 10, "chroma:document": "Table of Contents\nWe Could Be Harmed by Data Loss or Other Security Breaches\nBecause we collect, process, store, and transmit large amounts of data, including confidential, sensitive, proprietary, and business and personal\ninformation, failure to prevent or mitigate data loss, theft, misuse, or other security breaches or vulnerabilities affecting our or our vendors\u2019 or customers\u2019\ntechnology, products, and systems, could: expose us or our customers to a risk of loss, disclosure, or misuse of such information; adversely affect our operating\nresults; result in litigation, liability, or regulatory action (including under laws related to privacy, data use, data protection, data security, network security, and\nconsumer protection); deter customers or sellers from using our stores, products, and services; and otherwise harm our business and reputation. We use third-\nparty technology and systems for a variety of reasons, including, without limitation, encryption and authentication technology, employee email, content\ndelivery to customers, back-office support, and other functions. Some of our systems have experienced past security breaches, and, although they did not have\na material adverse effect on our operating results, there can be no assurance that future incidents will not have material adverse effects on our operations or\nfinancial results. Although we have developed systems and processes that are designed to protect customer data and prevent such incidents, including systems\nand processes designed to reduce the impact of a security breach at a third-party vendor or customer, such measures cannot provide absolute security and may\nfail to operate as intended or be circumvented.\nWe Face Risks Related to System Interruption and Lack of Redundancy\nWe experience occasional system interruptions and delays that make our websites and services unavailable or slow to respond and prevent us from\nefficiently accepting or fulfilling orders or providing services to customers and third parties, which may reduce our net sales and the attractiveness of our\nproducts and services. Steps we take to add software and hardware, upgrade our systems and network infrastructure, and improve the stability and efficiency of\nour systems may not be sufficient to avoid system interruptions or delays that could adversely affect our operating results.\nOur computer and communications systems and operations in the past have been, or in the future could be, damaged or interrupted due to events such as\nnatural or human-caused disasters (including public health crises) or extreme weather (including as a result of climate change), geopolitical events and security"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d6408-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 10, "chroma:document": "issues (including terrorist attacks and armed hostilities), computer viruses, physical or electronic break-ins, operational failures (including from energy\nshortages), and similar events or disruptions. Any of these events could cause system interruption, delays, and loss of critical data, and could prevent us from\naccepting and fulfilling customer orders and providing services, which could make our product and service offerings less attractive and subject us to liability.\nOur systems are not fully redundant and our disaster recovery planning may not be sufficient. In addition, our insurance may not provide sufficient coverage to\ncompensate for related losses. Any of these events could damage our reputation and be expensive to remedy.\nThe Loss of Key Senior Management Personnel or the Failure to Hire and Retain Highly Skilled and Other Personnel Could Negatively Affect Our\nBusiness\nWe depend on our senior management and other key personnel, including our President and CEO. We do not have \u201ckey person\u201d life insurance policies.\nWe also rely on other highly skilled personnel. Competition for qualified personnel in the industries in which we operate, as well as senior management, has\nhistorically been intense. For example, we experience significant competition in the technology industry, particularly for software engineers, computer\nscientists, and other technical staff. In addition, changes we make to our current and future work environments may not meet the needs or expectations of our\nemployees or may be perceived as less favorable compared to other companies\u2019 policies, which could negatively impact our ability to hire and retain qualified\npersonnel. The loss of any of our executive officers or other key employees, the failure to successfully transition key roles, or the inability to hire, train, retain,\nand manage qualified personnel, could harm our business.\nWe also rely on a significant number of personnel to operate our stores, fulfillment network, and data centers and carry out our other operations. Failure\nto successfully hire, train, manage, and retain sufficient personnel to meet our needs can strain our operations, increase payroll and other costs, and harm our\nbusiness and reputation. In addition, changes in laws and regulations applicable to employees, independent contractors, and temporary personnel could increase\nour payroll costs, decrease our operational flexibility, and negatively impact how we are able to staff our operations and supplement our workforce.\nWe are also subject to labor union efforts to organize groups of our employees from time to time. These organizational efforts, if successful, decrease our"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d6462-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 10, "chroma:document": "operational flexibility, which could adversely affect our operating efficiency. In addition, our response to any organizational efforts could be perceived\nnegatively and harm our business and reputation.\nOur Supplier Relationships Subject Us to a Number of Risks\nWe have significant suppliers, including content and technology licensors, and in some cases, limited or single-sources of supply, that are important to\nour sourcing, services, manufacturing, and any related ongoing servicing of merchandise and content. We do not have long-term arrangements with most of our\nsuppliers to guarantee availability of merchandise, content,\n11"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d64c6-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 11, "chroma:document": "Table of Contents\ncomponents, or services, particular payment terms, or the extension of credit limits. Decisions by our current suppliers to limit or stop selling or licensing\nmerchandise, content, components, or services to us on acceptable terms, or delay delivery, including as a result of one or more supplier bankruptcies due to\npoor economic conditions, as a result of natural or human-caused disasters (including public health crises), or for other reasons, may result in our being unable\nto procure alternatives from other suppliers in a timely and efficient manner and on acceptable terms, or at all. In addition, violations by our suppliers or other\nvendors of applicable laws, regulations, contractual terms, intellectual property rights of others, or our Supply Chain Standards, as well as products or practices\nregarded as unethical, unsafe, or hazardous, could expose us to claims, damage our reputation, limit our growth, and negatively affect our operating results.\nOur Commercial Agreements, Strategic Alliances, and Other Business Relationships Expose Us to Risks\nWe provide physical, e-commerce, and omnichannel retail, cloud services, and other services to businesses through commercial agreements, strategic\nalliances, and business relationships. Under these agreements, we provide web services, technology, fulfillment, computing, digital storage, and other services,\nas well as enable sellers to offer products or services through our stores. These arrangements are complex and require substantial infrastructure capacity,\npersonnel, and other resource commitments, which may limit the amount of business we can service. We may not be able to implement, maintain, and develop\nthe components of these commercial relationships, which may include web services, fulfillment, customer service, inventory management, tax collection,\npayment processing, hardware, content, and third-party software, and engaging third parties to perform services. The amount of compensation we receive under\ncertain of our commercial agreements is partially dependent on the volume of the other company\u2019s sales. Therefore, when the other company\u2019s offerings are not\nsuccessful, the compensation we receive may be lower than expected or the agreement may be terminated. Moreover, we may not be able to enter into\nadditional or alternative commercial relationships and strategic alliances on favorable terms. We also may be subject to claims from businesses to which we\nprovide these services if we are unsuccessful in implementing, maintaining, or developing these services.\nAs our agreements terminate, we may be unable to renew or replace these agreements on comparable terms, or at all. We may in the future enter into"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d6520-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 11, "chroma:document": "amendments on less favorable terms or encounter parties that have difficulty meeting their contractual obligations to us, which could adversely affect our\noperating results.\nOur present and future commercial agreements, strategic alliances, and business relationships create additional risks such as:\n\u2022disruption of our ongoing business, including loss of management focus on existing businesses;\n\u2022impairment of other relationships;\n\u2022variability in revenue and income from entering into, amending, or terminating such agreements or relationships; and\n\u2022difficulty integrating under the commercial agreements.\nOur Business Suffers When We Are Unsuccessful in Making, Integrating, and Maintaining Acquisitions and Investments\nWe have acquired and invested in a number of companies, and we may in the future acquire or invest in or enter into joint ventures with additional\ncompanies. These transactions involve risks such as:\n\u2022disruption of our ongoing business, including loss of management focus on existing businesses;\n\u2022problems retaining key personnel;\n\u2022additional operating losses and expenses of the businesses we acquired or in which we invested;\n\u2022the potential impairment of tangible and intangible assets and goodwill, including as a result of acquisitions;\n\u2022the potential impairment of customer and other relationships of the company we acquired or in which we invested or our own customers as a result of\nany integration of operations;\n\u2022the difficulty of completing such transactions, including obtaining regulatory approvals or satisfying other closing conditions, and achieving\nanticipated benefits within expected timeframes, or at all;\n\u2022the difficulty of incorporating acquired operations, technology, and rights into our offerings, and unanticipated expenses related to such integration;\n\u2022the difficulty of integrating a new company\u2019s accounting, financial reporting, management, information and data security, human resource, and other\nadministrative systems to permit effective management, and the lack of control if such integration is delayed or not successfully implemented;\n\u2022losses we may incur as a result of declines in the value of an investment or as a result of incorporating an investee\u2019s financial performance into our\nfinancial results;\n12"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d6584-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 12, "chroma:document": "Table of Contents\n\u2022for investments in which an investee\u2019s financial performance is incorporated into our financial results, either in full or in part, or investments for\nwhich we are required to file financial statements or provide financial information, the dependence on the investee\u2019s accounting, financial reporting,\nand similar systems, controls, and processes;\n\u2022the difficulty of implementing at companies we acquire the controls, procedures, and policies appropriate for a larger public company;\n\u2022the risks associated with businesses we acquire or invest in, which may differ from or be more significant than the risks our other businesses face;\n\u2022potential unknown liabilities associated with a company we acquire or in which we invest; and\n\u2022for foreign transactions, additional risks related to the integration of operations across different cultures and languages, and the economic, political,\nand regulatory risks associated with specific countries.\nAs a result of future acquisitions or mergers, we might need to issue additional equity securities, spend our cash, or incur debt, contingent liabilities, or\namortization expenses related to intangible assets, any of which could reduce our profitability and harm our business or only be available on unfavorable terms,\nif at all. In addition, valuations supporting our acquisitions and strategic investments could change rapidly. We could determine that such valuations have\nexperienced impairments or other-than-temporary declines in fair value which could adversely impact our financial results.\nWe Face Significant Inventory Risk\nIn addition to risks described elsewhere in this Item 1A relating to fulfillment network and inventory optimization by us and third parties, we are exposed\nto significant inventory risks that may adversely affect our operating results as a result of seasonality, new product launches, rapid changes in product cycles\nand pricing, defective merchandise, changes in customer demand and consumer spending patterns, changes in consumer tastes with respect to our products,\nspoilage, and other factors. We endeavor to accurately predict these trends and avoid overstocking or understocking products we manufacture and/or sell.\nDemand for products, however, can change significantly between the time inventory or components are ordered and the date of sale. In addition, when we\nbegin selling or manufacturing a new product, it may be difficult to establish vendor relationships, determine appropriate product or component selection, and\naccurately forecast demand. The acquisition of certain types of inventory or components requires significant lead-time and prepayment and they may not be"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 12, "chroma:document": "returnable. We carry a broad selection and significant inventory levels of certain products, such as consumer electronics, and at times we are unable to sell\nproducts in sufficient quantities or to meet demand during the relevant selling seasons. Any one of the inventory risk factors set forth above may adversely\naffect our operating results.\nWe Are Subject to Payments-Related Risks\nWe accept payments using a variety of methods, including credit card, debit card, credit accounts (including promotional financing), gift cards, direct\ndebit from a customer\u2019s bank account, consumer invoicing, physical bank check, and payment upon delivery. For existing and future payment options we offer\nto our customers, we currently are subject to, and may become subject to additional, regulations and compliance requirements (including obligations to\nimplement enhanced authentication processes that could result in significant costs and reduce the ease of use of our payments products), as well as fraud. For\ncertain payment methods, including credit and debit cards, we pay interchange and other fees, which may increase over time and raise our operating costs and\nlower profitability. We rely on third parties to provide certain Amazon-branded payment methods and payment processing services, including the processing of\ncredit cards, debit cards, electronic checks, and promotional financing. In each case, it could disrupt our business if these companies become unwilling or\nunable to provide these services to us. We also offer co-branded credit card programs, which could adversely affect our operating results if renewed on less\nfavorable terms or terminated. We are also subject to payment card association operating rules, including data security rules, certification requirements, and\nrules governing electronic funds transfers, which could change or be reinterpreted to make it difficult or impossible for us to comply. Failure to comply with\nthese rules or requirements, as well as any breach, compromise, or failure to otherwise detect or prevent fraudulent activity involving our data security systems,\ncould result in our being liable for card issuing banks\u2019 costs, subject to fines and higher transaction fees, and loss of our ability to accept credit and debit card\npayments from our customers, process electronic funds transfers, or facilitate other types of online payments, and our business and operating results could be\nadversely affected.\nIn addition, we provide regulated services in certain jurisdictions because we enable customers to keep account balances with us and transfer money to\nthird parties, and because we provide services to third parties to facilitate payments on their behalf. Jurisdictions subject us to requirements for licensing,"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 12, "chroma:document": "regulatory inspection, bonding and capital maintenance, the use, handling, and segregation of transferred funds, consumer disclosures, maintaining or\nprocessing data, and authentication. We are also subject to or voluntarily comply with a number of other laws and regulations relating to payments, money\nlaundering, international money transfers, privacy, data use, data protection, data security, data localization, network security, consumer\n13"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 13, "chroma:document": "Table of Contents\nprotection, and electronic fund transfers. If we were found to be in violation of applicable laws or regulations, we could be subject to additional requirements\nand civil and criminal penalties, or forced to cease providing certain services.\nWe Have a Rapidly Evolving Business Model and Our Stock Price Is Highly Volatile\nWe have a rapidly evolving business model. The trading price of our common stock fluctuates significantly in response to, among other risks, the risks\ndescribed elsewhere in this Item 1A, as well as:\n\u2022changes in interest rates;\n\u2022conditions or trends in the Internet and the industry segments we operate in;\n\u2022quarterly variations in operating results;\n\u2022fluctuations in the stock market in general and market prices for Internet-related companies in particular;\n\u2022changes in financial estimates by us or decisions to increase or decrease future spending or investment levels;\n\u2022changes in financial estimates and recommendations by securities analysts;\n\u2022changes in our capital structure, including issuance of additional debt or equity to the public;\n\u2022changes in the valuation methodology of, or performance by, other e-commerce or technology companies; and\n\u2022transactions in our common stock by major investors and certain analyst reports, news, and speculation.\nVolatility in our stock price could adversely affect our business and financing opportunities and force us to increase our cash compensation to employees\nor grant larger stock awards than we have historically, which could hurt our operating results or reduce the percentage ownership of our existing stockholders,\nor both.\nLegal and Regulatory Risks\nGovernment Regulation Is Evolving and Unfavorable Changes Could Harm Our Business\nWe are subject to general business regulations and laws, as well as regulations and laws specifically governing the Internet, physical, e-commerce, and\nomnichannel retail, digital content, web services, electronic devices, advertising, artificial intelligence technologies and services, and other products and\nservices that we offer or sell. These regulations and laws cover taxation, privacy, data use, data protection, data security, data localization, network security,\nconsumer protection, pricing, content, copyrights, distribution, transportation, mobile communications, electronic device certification, electronic waste, energy\nconsumption, environmental regulation, electronic contracts and other communications, competition, employment, trade and protectionist measures, web\nservices, the provision of online payment services, registration, licensing, and information reporting requirements, unencumbered Internet access to our"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 13, "chroma:document": "services or access to our facilities, the design and operation of websites, health, safety, and sanitation standards, the characteristics, legality, and quality of\nproducts and services, product labeling, the commercial operation of unmanned aircraft systems, healthcare, and other matters. It is not clear how existing laws\ngoverning issues such as property ownership, libel, privacy, data use, data protection, data security, data localization, network security, and consumer protection\napply to aspects of our operations such as the Internet, e-commerce, digital content, web services, electronic devices, advertising, and artificial intelligence\ntechnologies and services. A large number of jurisdictions regulate our operations, and the extent, nature, and scope of such regulations is evolving and\nexpanding as the scope of our businesses expand. We are regularly subject to formal and informal reviews, investigations, and other proceedings by\ngovernments and regulatory authorities under existing laws, regulations, or interpretations or pursuing new and novel approaches to regulate our operations.\nFor example, we face a number of open investigations based on claims that aspects of our operations violate competition rules, including aspects of Amazon\u2019s\nU.S. and European marketplace for sellers, particularly with respect to use of data, fulfillment services, and featured offers, and legislative and regulatory\ninitiatives in Europe and elsewhere allow authorities to restrict or prohibit certain operations or actions pre-emptively without the need to assess specific\ncompetitive effects. Unfavorable regulations, laws, decisions, or interpretations by government or regulatory authorities applying those laws and regulations, or\ninquiries, investigations, or enforcement actions threatened or initiated by them, could cause us to incur substantial costs, expose us to unanticipated civil and\ncriminal liability or penalties (including substantial monetary fines), diminish the demand for, or availability of, our products and services, increase our cost of\ndoing business, require us to change our business practices in a manner materially adverse to our business, damage our reputation, impede our growth, or\notherwise have a material effect on our operations. The media, political, and regulatory scrutiny we face, which may continue to increase, amplifies these risks.\n14"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 14, "chroma:document": "Table of Contents\nClaims, Litigation, Government Investigations, and Other Proceedings May Adversely Affect Our Business and Results of Operations\nAs an innovative company offering a wide range of consumer and business products and services around the world, we are regularly subject to actual and\nthreatened claims, litigation, reviews, investigations, and other proceedings, including proceedings by governments and regulatory authorities, involving a wide\nrange of issues, including patent and other intellectual property matters, taxes, labor and employment, competition and antitrust, privacy, data use, data\nprotection, data security, data localization, network security, consumer protection, commercial disputes, goods and services offered by us and by third parties,\nand other matters. The number and scale of these proceedings have increased over time as our businesses have expanded in scope and geographic reach, as our\nproducts, services, and operations have become more complex and available to, and used by, more people, and as governments and regulatory authorities seek\nto regulate us on a pre-emptive basis. For example, we are litigating a number of matters alleging price fixing, monopolization, and consumer protection\nclaims, including those brought by state attorneys general. Any of these types of proceedings can have an adverse effect on us because of legal costs, disruption\nof our operations, diversion of management resources, negative publicity, and other factors. The outcomes of these matters are inherently unpredictable and\nsubject to significant uncertainties. Determining legal reserves or possible losses from such matters involves judgment and may not reflect the full range of\nuncertainties and unpredictable outcomes. Until the final resolution of such matters, we may be exposed to losses in excess of the amount recorded, and such\namounts could be material. Should any of our estimates and assumptions change or prove to have been incorrect, it could have a material effect on our\nbusiness, consolidated financial position, results of operations, or cash flows. In addition, it is possible that a resolution of one or more such proceedings,\nincluding as a result of a settlement, could involve licenses, sanctions, consent decrees, or orders requiring us to make substantial future payments, preventing\nus from offering certain products or services, requiring us to change our business practices in a manner materially adverse to our business, requiring\ndevelopment of non-infringing or otherwise altered products or technologies, damaging our reputation, or otherwise having a material effect on our operations."}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 14, "chroma:document": "We Are Subject to Product Liability Claims When People or Property Are Harmed by the Products We Sell or Manufacture\nSome of the products we sell or manufacture expose us to product liability or food safety claims relating to personal injury or illness, death, or\nenvironmental or property damage, and can require product recalls or other actions. Third parties who sell products using our services and stores also expose us\nto product liability claims. Additionally, under our A-to-z Guarantee, we may reimburse customers for certain product liability claims up to certain limits in\nthese situations, and as our third-party seller sales grow, the cost of this program will increase and could negatively affect our operating results. Although we\nmaintain liability insurance, we cannot be certain that our coverage will be adequate for liabilities actually incurred or that insurance will continue to be\navailable to us on economically reasonable terms, or at all. Although we impose contractual terms on sellers that are intended to prohibit sales of certain type of\nproducts, we may not be able to detect, enforce, or collect sufficient damages for breaches of such agreements. In addition, some of our agreements with our\nvendors and sellers do not indemnify us from product liability.\nWe Face Additional Tax Liabilities and Collection Obligations\nWe are subject to a variety of taxes and tax collection obligations in the U.S. (federal and state) and numerous foreign jurisdictions. We may recognize\nadditional tax expense and be subject to additional tax liabilities, including other liabilities for tax collection obligations due to changes in laws, regulations,\nadministrative practices, principles, and interpretations related to tax, including changes to the global tax framework, competition, and other laws and\naccounting rules in various jurisdictions. Such changes could come about as a result of economic, political, and other conditions. An increasing number of\njurisdictions are considering or have adopted laws or administrative practices that impose new tax measures, including revenue-based taxes, targeting online\ncommerce and the remote selling of goods and services. These include new obligations to withhold or collect sales, consumption, value added, or other taxes\non online marketplaces and remote sellers, or other requirements that may result in liability for third party obligations. For example, non-U.S. jurisdictions\nhave proposed or enacted taxes on online advertising and marketplace service revenues. Proliferation of these or similar unilateral tax measures may continue\nunless broader international tax reform is implemented. Our results of operations and cash flows could be adversely affected by additional taxes imposed on us"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 14, "chroma:document": "prospectively or retroactively or additional taxes or penalties resulting from the failure to comply with any collection obligations or failure to provide\ninformation about our customers, suppliers, and other third parties for tax reporting purposes to various government agencies. In some cases we also may not\nhave sufficient notice to enable us to build systems and adopt processes to properly comply with new reporting or collection obligations by the effective date.\nOur tax expense and liabilities are also affected by other factors, such as changes in our business operations, acquisitions, investments, entry into new\nbusinesses and geographies, intercompany transactions, the relative amount of our foreign earnings, losses incurred in jurisdictions for which we are not able to\nrealize related tax benefits, the applicability of special or extraterritorial tax regimes, changes in foreign currency exchange rates, changes in our stock price,\nchanges to our forecasts of income and loss and the mix of jurisdictions to which they relate, and changes in our tax assets and liabilities and their\n15"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 15, "chroma:document": "Table of Contents\nvaluation. In the ordinary course of our business, there are many transactions and calculations for which the ultimate tax determination is uncertain. Significant\njudgment is required in evaluating and estimating our tax expense, assets, and liabilities.\nWe are also subject to tax controversies in various jurisdictions that can result in tax assessments against us. Developments in an audit, investigation, or\nother tax controversy can have a material effect on our operating results or cash flows in the period or periods for which that development occurs, as well as for\nprior and subsequent periods. Due to the inherent complexity and uncertainty of these matters, interpretations of certain tax laws by authorities, and judicial,\nadministrative, and regulatory processes in certain jurisdictions, the final outcome of any such controversy may be materially different from our expectations.\nFor example, in February 2023, the Indian Tax Authority determined that tax applies to cloud services fees paid to the U.S. We are contesting this\ndetermination; however, if this matter is adversely resolved, we may be required to pay additional amounts with respect to current and prior periods and our\ntaxes in the future could increase. We regularly assess the likelihood of an adverse outcome resulting from these proceedings to determine the adequacy of our\ntax accruals. Although we believe our tax estimates are reasonable, the final outcome of audits, investigations, and any other tax controversies could be\nmaterially different from our historical tax accruals.\nWe Are Subject to Risks Related to Government Contracts and Related Procurement Regulations\nOur contracts with U.S., as well as state, local, and foreign, government entities are subject to various procurement regulations and other requirements\nrelating to their formation, administration, and performance. We are subject to audits and investigations relating to our government contracts, and any\nviolations could result in various civil and criminal penalties and administrative sanctions, including termination of contract, refunding or suspending of\npayments, forfeiture of profits, payment of fines, and suspension or debarment from future government business. In addition, some of these contracts are\nsubject to periodic funding approval and/or provide for termination by the government at any time, without cause.\nItem 1B. Unresolved Staff Comments\nNone.\n16"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 16, "chroma:document": "Table of Contents\nItem 2. Properties\nAs of December 31, 2022, we operated the following facilities (in thousands):\nDescription of UseLeased Square\nFootage (1) Owned Square Footage Location\nOffice space 30,611 6,792North America\nOffice space 23,956 1,802International\nPhysical stores (2) 22,881 662North America\nPhysical stores (2) 291 \u2014International\nFulfillment, data centers, and other 391,598 22,058North America\nFulfillment, data centers, and other 148,146 12,613International\nTotal 617,483 43,927\n ___________________\n(1)For leased properties, represents the total leased space excluding sub-leased space.\n(2)This includes 611 North America and 32 International stores as of December 31, 2022.\nSegmentLeased Square Footage\n(1)Owned Square Footage\n(1)\nNorth America 403,984 13,595\nInternational 140,898 6,292\nAWS 18,034 15,446\nTotal 562,916 35,333\n ___________________\n(1)Segment amounts exclude corporate facilities. Shared facilities are allocated among the segments based on usage and primarily relate to facilities that hold\nour technology infrastructure. See Item 8 of Part II, \u201cFinancial Statements and Supplementary Data \u2014 Note 10 \u2014 Segment Information.\u201d\nWe own and lease our corporate headquarters in Washington\u2019s Puget Sound region and Arlington, Virginia.\nItem 3. Legal Proceedings\nSee Item 8 of Part II, \u201cFinancial Statements and Supplementary Data \u2014 Note 7 \u2014 Commitments and Contingencies \u2014 Legal Proceedings.\u201d\nItem 4. Mine Safety Disclosures\nNot applicable.\n17"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 17, "chroma:document": "Table of Contents\nPART II\nItem 5. Market for the Registrant\u2019s Common Stock, Related Shareholder Matters, and Issuer Purchases of Equity Securities\nMarket Information\nOur common stock is traded on the Nasdaq Global Select Market under the symbol \u201cAMZN.\u201d\nHolders\nAs of January 25, 2023, there were 10,845 shareholders of record of our common stock, although there is a much larger number of beneficial owners.\nRecent Sales of Unregistered Securities\nNone.\nIssuer Purchases of Equity Securities\nNone.\nItem 6. Reserved\n18"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 18, "chroma:document": "Table of Contents\nItem 7. Management\u2019s Discussion and Analysis of Financial Condition and Results of Operations\nForward-Looking Statements\nThis Annual Report on Form 10-K includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All\nstatements other than statements of historical fact, including statements regarding guidance, industry prospects, or future results of operations or financial\nposition, made in this Annual Report on Form 10-K are forward-looking. We use words such as anticipates, believes, expects, future, intends, and similar\nexpressions to identify forward-looking statements. Forward-looking statements reflect management\u2019s current expectations and are inherently uncertain. Actual\nresults and outcomes could differ materially for a variety of reasons, including, among others, fluctuations in foreign exchange rates, changes in global\neconomic conditions and customer demand and spending, inflation, interest rates, regional labor market and global supply chain constraints, world events, the\nrate of growth of the Internet, online commerce, and cloud services, the amount that Amazon.com invests in new business opportunities and the timing of those\ninvestments, the mix of products and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we\nowe income or other taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes\nof claims, litigation, government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of inventory\nmanagement, variability in demand, the degree to which we enter into, maintain, and develop commercial agreements, proposed and completed acquisitions\nand strategic transactions, payments risks, and risks of fulfillment throughput and productivity. In addition, global economic and geopolitical conditions and\nadditional or unforeseen circumstances, developments, or events may give rise to or amplify many of these risks. These risks and uncertainties, as well as other\nrisks and uncertainties that could cause our actual results or outcomes to differ significantly from management\u2019s expectations, are described in greater detail in\nItem 1A of Part I, \u201cRisk Factors.\u201d\nOverview\nOur primary source of revenue is the sale of a wide range of products and services to customers. The products offered through our stores include\nmerchandise and content we have purchased for resale and products offered by third-party sellers, and we also manufacture and sell electronic devices and"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 18, "chroma:document": "produce media content. Generally, we recognize gross revenue from items we sell from our inventory as product sales and recognize our net share of revenue\nof items sold by third-party sellers as service sales. We seek to increase unit sales across our stores, through increased product selection, across numerous\nproduct categories. We also offer other services such as compute, storage, and database offerings, fulfillment, advertising, publishing, and digital content\nsubscriptions.\nOur financial focus is on long-term, sustainable growth in free cash flows. Free cash flows are driven primarily by increasing operating income and\nefficiently managing accounts receivable, inventory, accounts payable, and cash capital expenditures, including our decision to purchase or lease property and\nequipment. Increases in operating income primarily result from increases in sales of products and services and efficiently managing our operating costs,\npartially offset by investments we make in longer-term strategic initiatives, including capital expenditures focused on improving the customer experience. To\nincrease sales of products and services, we focus on improving all aspects of the customer experience, including lowering prices, improving availability,\noffering faster delivery and performance times, increasing selection, producing original content, increasing product categories and service offerings, expanding\nproduct information, improving ease of use, improving reliability, and earning customer trust. See \u201cResults of Operations \u2014 Non-GAAP Financial Measures\u201d\nbelow for additional information on our non-GAAP free cash flows financial measures.\nWe seek to reduce our variable costs per unit and work to leverage our fixed costs. Our variable costs include product and content costs, payment\nprocessing and related transaction costs, picking, packaging, and preparing orders for shipment, transportation, customer service support, costs necessary to run\nAWS, and a portion of our marketing costs. Our fixed costs include the costs necessary to build and run our technology infrastructure; to build, enhance, and\nadd features to our online stores, web services, electronic devices, and digital offerings; and to build and optimize our fulfillment network. Variable costs\ngenerally change directly with sales volume, while fixed costs generally are dependent on the timing of capacity needs, geographic expansion, category\nexpansion, and other factors. To decrease our variable costs on a per unit basis and enable us to lower prices for customers, we seek to increase our direct\nsourcing, increase discounts from suppliers, and reduce defects in our processes. To minimize unnecessary growth in fixed costs, we seek to improve process\nefficiencies and maintain a lean culture."}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 18, "chroma:document": "efficiencies and maintain a lean culture.\nWe seek to turn inventory quickly and collect from consumers before our payments to vendors and sellers become due. Because consumers primarily use\ncredit cards in our stores, our receivables from consumers settle quickly. We expect variability in inventory turnover over time since it is affected by numerous\nfactors, including our product mix, the mix of sales by us and by third-party sellers, our continuing focus on in-stock inventory availability and selection of\nproduct offerings, supply chain disruptions and resulting vendor lead times, our investment in new geographies and product lines, and the extent to which we\nchoose to utilize third-party fulfillment providers. We also expect some variability in accounts payable days over time since they are affected by several factors,\nincluding the mix of product sales, the mix of sales by third-party sellers, the mix\n19"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 19, "chroma:document": "Table of Contents\nof suppliers, seasonality, and changes in payment and other terms over time, including the effect of balancing pricing and timing of payment terms with\nsuppliers.\nWe expect spending in technology and content will increase over time as we add computer scientists, designers, software and hardware engineers, and\nmerchandising employees. Our technology and content investment and capital spending projects often support a variety of product and service offerings due to\ngeographic expansion and the cross-functionality of our systems and operations. We seek to invest efficiently in several areas of technology and content,\nincluding AWS, and expansion of new and existing product categories and service offerings, as well as in technology infrastructure to enhance the customer\nexperience and improve our process efficiencies. We believe that advances in technology, specifically the speed and reduced cost of processing power, data\nstorage and analytics, improved wireless connectivity, and the practical applications of artificial intelligence and machine learning, will continue to improve\nusers\u2019 experience on the Internet and increase its ubiquity in people\u2019s lives. To best take advantage of these continued advances in technology, we are investing\nin AWS, which offers a broad set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services,\nto developers and enterprises of all sizes. We are also investing in initiatives to build and deploy innovative and efficient software and electronic devices as\nwell as other initiatives including the development of a satellite network for global broadband service and autonomous vehicles for ride-hailing services.\nWe seek to efficiently manage shareholder dilution while maintaining the flexibility to issue shares for strategic purposes, such as financings,\nacquisitions, and aligning employee compensation with shareholders\u2019 interests. We utilize restricted stock units as our primary vehicle for equity compensation\nbecause we believe this compensation model aligns the long-term interests of our shareholders and employees. In measuring shareholder dilution, we include\nall vested and unvested stock awards outstanding, without regard to estimated forfeitures. Total shares outstanding plus outstanding stock awards were 10.5\nbillion and 10.6 billion as of December 31, 2021 and 2022.\nOur financial reporting currency is the U.S. Dollar and changes in foreign exchange rates significantly affect our reported results and consolidated\ntrends. For example, if the U.S. Dollar weakens year-over-year relative to currencies in our international locations, our consolidated net sales and operating"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 19, "chroma:document": "expenses will be higher than if currencies had remained constant. Likewise, if the U.S. Dollar strengthens year-over-year relative to currencies in our\ninternational locations, our consolidated net sales and operating expenses will be lower than if currencies had remained constant. We believe that our increasing\ndiversification beyond the U.S. economy through our growing international businesses benefits our shareholders over the long-term. We also believe it is useful\nto evaluate our operating results and growth rates before and after the effect of currency changes.\nIn addition, the remeasurement of our intercompany balances can result in significant gains and losses associated with the effect of movements in foreign\ncurrency exchange rates. Currency volatilities may continue, which may significantly impact (either positively or negatively) our reported results and\nconsolidated trends and comparisons.\nFor additional information about each line item addressed above, refer to Item 8 of Part II, \u201cFinancial Statements and Supplementary Data \u2014 Note 1 \u2014\nDescription of Business, Accounting Policies, and Supplemental Disclosures.\u201d\nOur Annual Report on Form 10-K for the year ended December 31, 2021 includes a discussion and analysis of our financial condition and results of\noperations for the year ended December 31, 2020 in Item 7 of Part II, \u201cManagement\u2019s Discussion and Analysis of Financial Condition and Results of\nOperations.\u201d\nCritical Accounting Estimates\nThe preparation of financial statements in conformity with generally accepted accounting principles of the United States (\u201cGAAP\u201d) requires estimates\nand assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the\nconsolidated financial statements and accompanying notes. Critical accounting estimates are those estimates made in accordance with GAAP that involve a\nsignificant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of\nthe Company. Based on this definition, we have identified the critical accounting estimates addressed below. We also have other key accounting policies, which\ninvolve the use of estimates, judgments, and assumptions that are significant to understanding our results. For additional information, see Item 8 of Part II,\n\u201cFinancial Statements and Supplementary Data \u2014 Note 1 \u2014 Description of Business, Accounting Policies, and Supplemental Disclosures.\u201d Although we\nbelieve that our estimates, assumptions, and judgments are reasonable, they are based upon information presently available. Actual results may differ\nsignificantly from these estimates under different assumptions, judgments, or conditions."}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 19, "chroma:document": "significantly from these estimates under different assumptions, judgments, or conditions.\nInventories\nInventories, 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\nand net realizable value. This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such\nas through sales to individual customers, returns to product\n20"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 20, "chroma:document": "Table of Contents\nvendors, or liquidations, and expected recoverable values of each disposition category. These assumptions about future disposition of inventory are inherently\nuncertain and changes in our estimates and assumptions may cause us to realize material write-downs in the future. As a measure of sensitivity, for every 1% of\nadditional inventory valuation allowance as of December 31, 2022, we would have recorded an additional cost of sales of approximately $390 million.\nIn addition, we enter into supplier commitments for certain electronic device components and certain products. These commitments are based on\nforecasted customer demand. If we reduce these commitments, we may incur additional costs.\nIncome Taxes\nWe are subject to income taxes in the U.S. (federal and state) and numerous foreign jurisdictions. Tax laws, regulations, administrative practices,\nprinciples, and interpretations in various jurisdictions may be subject to significant change, with or without notice, due to economic, political, and other\nconditions, and significant judgment is required in evaluating and estimating our provision and accruals for these taxes. There are many transactions that occur\nduring the ordinary course of business for which the ultimate tax determination is uncertain. In addition, our actual and forecasted earnings are subject to\nchange due to economic, political, and other conditions and significant judgment is required in determining our ability to use our deferred tax assets.\nOur effective tax rates could be affected by numerous factors, such as changes in our business operations, acquisitions, investments, entry into new\nbusinesses and geographies, intercompany transactions, the relative amount of our foreign earnings, including earnings being lower than anticipated in\njurisdictions where we have lower statutory rates and higher than anticipated in jurisdictions where we have higher statutory rates, losses incurred in\njurisdictions for which we are not able to realize related tax benefits, the applicability of special tax regimes, changes in foreign currency exchange rates,\nchanges in our stock price, changes to our forecasts of income and loss and the mix of jurisdictions to which they relate, changes in our deferred tax assets and\nliabilities and their valuation, changes in the laws, regulations, administrative practices, principles, and interpretations related to tax, including changes to the\nglobal tax framework, competition, and other laws and accounting rules in various jurisdictions. In addition, a number of countries have enacted or are actively\npursuing changes to their tax laws applicable to corporate multinationals."}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d6caa-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 20, "chroma:document": "pursuing changes to their tax laws applicable to corporate multinationals.\nWe are also currently subject to tax controversies in various jurisdictions, and these jurisdictions may assess additional income tax liabilities against us.\nDevelopments in an audit, investigation, or other tax controversy could have a material effect on our operating results or cash flows in the period or periods for\nwhich that development occurs, as well as for prior and subsequent periods. We regularly assess the likelihood of an adverse outcome resulting from these\nproceedings to determine the adequacy of our tax accruals. Although we believe our tax estimates are reasonable, the final outcome of audits, investigations,\nand any other tax controversies could be materially different from our historical income tax provisions and accruals.\nLiquidity and Capital Resources\nCash flow information is as follows (in millions):\n  Year Ended December 31,\n 2021 2022\nCash provided by (used in):\nOperating activities $ 46,327 $ 46,752 \nInvesting activities (58,154) (37,601)\nFinancing activities 6,291 9,718 \nOur principal sources of liquidity are cash flows generated from operations and our cash, cash equivalents, and marketable securities balances, which, at\nfair value, were $96.0 billion and $70.0 billion as of December 31, 2021 and 2022. Amounts held in foreign currencies were $22.7 billion and $18.3 billion as\nof December 31, 2021 and 2022. Our foreign currency balances include British Pounds, Canadian Dollars, Euros, and Japanese Yen.\nCash provided by (used in) operating activities was $46.3 billion and $46.8 billion in 2021 and 2022. Our operating cash flows result primarily from cash\nreceived from our consumer, seller, developer, enterprise, and content creator customers, and advertisers, offset by cash payments we make for products and\nservices, employee compensation, payment processing and related transaction costs, operating leases, and interest payments. Cash received from our customers\nand other activities generally corresponds to our net sales. The increase in operating cash flow in 2022, compared to the prior year, was primarily due to the\nincrease in net income, excluding non-cash expenses, partially offset by changes in working capital. Working capital at any specific point in time is subject to"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 20, "chroma:document": "many variables, including variability in demand, inventory management and category expansion, the timing of cash receipts and payments, customer and\nvendor payment terms, and fluctuations in foreign exchange rates.\n21"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 21, "chroma:document": "Table of Contents\nCash provided by (used in) investing activities corresponds with cash capital expenditures, including leasehold improvements, incentives received from\nproperty and equipment vendors, proceeds from asset sales, cash outlays for acquisitions, investments in other companies and intellectual property rights, and\npurchases, sales, and maturities of marketable securities. Cash provided by (used in) investing activities was $(58.2) billion and $(37.6) billion in 2021 and\n2022, with the variability caused primarily by purchases, sales, and maturities of marketable securities. Cash capital expenditures were $55.4 billion, and $58.3\nbillion in 2021 and 2022, which primarily reflect investments in technology infrastructure (the majority of which is to support AWS business growth) and in\nadditional capacity to support our fulfillment network. We expect to continue these investments over time, with increased spending on technology\ninfrastructure. We made cash payments, net of acquired cash, related to acquisition and other investment activity of $2.0 billion and $8.3 billion in 2021 and\n2022. We funded the acquisition of MGM Holdings Inc. with cash on hand. We expect to fund the acquisitions of 1Life Healthcare, Inc. (One Medical) and\niRobot Corporation with cash on hand.\nCash provided by (used in) financing activities was $6.3 billion and $9.7 billion in 2021 and 2022. Cash inflows from financing activities resulted from\nproceeds from short-term debt, and other and long-term-debt of $27.0 billion and $62.7 billion in 2021 and 2022. Cash outflows from financing activities\nresulted from repurchases of common stock, payments of short-term debt, and other, long-term debt, finance leases, and financing obligations of $20.7 billion\nand $53.0 billion in 2021 and 2022. Property and equipment acquired under finance leases was $7.1 billion and $675 million in 2021 and 2022.\nWe had no borrowings outstanding under the two unsecured revolving credit facilities, $6.8 billion of borrowings outstanding under the commercial\npaper programs, and $1.0 billion of borrowings outstanding under the secured revolving credit facility as of December 31, 2022. See Item 8 of Part II,"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 21, "chroma:document": "\u201cFinancial Statements and Supplementary Data \u2014 Note 6 \u2014 Debt\u201d for additional information. \nAs of December 31, 2022, cash, cash equivalents, and marketable securities held by foreign subsidiaries were $4.7 billion. We intend to invest\nsubstantially all of our foreign subsidiary earnings, as well as our capital in our foreign subsidiaries, indefinitely outside of the U.S. in those jurisdictions in\nwhich we would incur significant, additional costs upon repatriation of such amounts.\nOur U.S. taxable income is reduced by accelerated depreciation deductions and increased by the impact of capitalized research and development\nexpenses. U.S. tax rules provide for enhanced accelerated depreciation deductions by allowing the election of full expensing of qualified property, primarily\nequipment, through 2022. Our federal tax provision included a partial election for 2020 and 2021, and a full election for 2022. Effective January 1, 2022,\nresearch and development expenses are required to be capitalized and amortized for U.S. tax purposes, which delays the deductibility of these expenses. Cash\ntaxes paid (net of refunds) were $3.7 billion and $6.0 billion for 2021 and 2022.\nAs of December 31, 2021 and 2022, restricted cash, cash equivalents, and marketable securities were $260 million and $365 million. See Item 8 of Part\nII, \u201cFinancial Statements and Supplementary Data \u2014 Note 6 \u2014 Debt\u201d and \u201cFinancial Statements and Supplementary Data \u2014 Note 7 \u2014 Commitments and\nContingencies\u201d for additional discussion of our principal contractual commitments, as well as our pledged assets. Additionally, we have purchase obligations\nand open purchase orders, including for inventory and capital expenditures, that support normal operations and are primarily due in the next twelve months.\nThese purchase obligations and open purchase orders are generally cancellable in full or in part through the contractual provisions.\nWe believe that cash flows generated from operations and our cash, cash equivalents, and marketable securities balances, as well as our borrowing\narrangements, will be sufficient to meet our anticipated operating cash needs for at least the next twelve months. However, any projections of future cash needs\nand cash flows are subject to substantial uncertainty. See Item 1A of Part I, \u201cRisk Factors.\u201d We continually evaluate opportunities to sell additional equity or"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 21, "chroma:document": "debt securities, obtain credit facilities, obtain finance and operating lease arrangements, enter into financing obligations, repurchase common stock, pay\ndividends, or repurchase, refinance, or otherwise restructure our debt for strategic reasons or to further strengthen our financial position.\nThe sale of additional equity or convertible debt securities would be dilutive to our shareholders. In addition, we will, from time to time, consider the\nacquisition of, or investment in, complementary businesses, products, services, capital infrastructure, and technologies, which might affect our liquidity\nrequirements or cause us to secure additional financing, or issue additional equity or debt securities. There can be no assurance that additional credit lines or\nfinancing instruments will be available in amounts or on terms acceptable to us, if at all. In addition, economic conditions and actions by policymaking bodies\nare contributing to rising interest rates and significant capital market volatility, which, along with increases in our borrowing levels, could increase our future\nborrowing costs.\n22"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 22, "chroma:document": "Table of Contents\nResults of Operations\nWe have organized our operations into three segments: North America, International, and AWS. These segments reflect the way the Company evaluates\nits business performance and manages its operations. See Item 8 of Part II, \u201cFinancial Statements and Supplementary Data \u2014 Note 10 \u2014 Segment\nInformation.\u201d\nOverview\nMacroeconomic factors, including inflation, increased interest rates, significant capital market volatility, the prolonged COVID-19 pandemic, global\nsupply chain constraints, and global economic and geopolitical developments, have direct and indirect impacts on our results of operations that are difficult to\nisolate and quantify. These factors contributed to increases in our operating costs during 2022, particularly across our North America and International\nsegments, primarily due to a return to more normal, seasonal demand volumes in relation to our fulfillment network fixed costs, increased transportation and\nutility costs, and increased wage rates. In addition, rising fuel, utility, and food costs, rising interest rates, and recessionary fears may impact customer demand\nand our ability to forecast consumer spending patterns. We also expect the current macroeconomic environment and enterprise customer cost optimization\nefforts to impact our AWS revenue growth rates. We expect some or all of these factors to continue to impact our operations into Q1 2023.\nNet Sales\nNet sales include product and service sales. Product sales represent revenue from the sale of products and related shipping fees and digital media content\nwhere we record revenue gross. Service sales primarily represent third-party seller fees, which includes commissions and any related fulfillment and shipping\nfees, AWS sales, advertising services, Amazon Prime membership fees, and certain digital content subscriptions. Net sales information is as follows (in\nmillions):\n  Year Ended December 31,\n 2021 2022\nNet Sales:\nNorth America $ 279,833 $ 315,880 \nInternational 127,787 118,007 \nAWS 62,202 80,096 \nConsolidated $ 469,822 $ 513,983 \nYear-over-year Percentage Growth (Decline):\nNorth America 18 % 13 %\nInternational 22 (8)\nAWS 37 29 \nConsolidated 22 9 \nYear-over-year Percentage Growth, excluding the effect of foreign exchange rates:\nNorth America 18 % 13 %\nInternational 20 4 \nAWS 37 29 \nConsolidated 21 13 \nNet sales mix:"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 22, "chroma:document": "Consolidated 21 13 \nNet sales mix:\nNorth America 60 % 61 %\nInternational 27 23 \nAWS 13 16 \nConsolidated 100 % 100 %\nSales increased 9% in 2022, compared to the prior year. Changes in foreign currency exchange rates reduced net sales by $15.5 billion in 2022. For a\ndiscussion of the effect of foreign exchange rates on sales growth, see \u201cEffect of Foreign Exchange Rates\u201d below.\nNorth America sales increased 13% in 2022, compared to the prior year. The sales growth primarily reflects increased unit sales, including sales by third-\nparty sellers, advertising sales, and subscription services. Increased unit sales were driven largely by our continued focus on price, selection, and convenience\nfor our customers, including from our shipping offers.\n23"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 23, "chroma:document": "Table of Contents\nInternational sales decreased 8% in 2022, compared to the prior year, primarily due to the impact of changes in foreign currency exchange rates, partially\noffset by increased unit sales, including sales by third-party sellers, advertising sales, and subscription services. Increased unit sales were driven largely by our\ncontinued focus on price, selection, and convenience for our customers, including from our shipping offers. Changes in foreign currency exchange rates\nreduced International net sales by $15.0 billion in 2022.\nAWS sales increased 29% in 2022, compared to the prior year. The sales growth primarily reflects increased customer usage, partially offset by pricing\nchanges, primarily driven by long-term customer contracts.\nOperating Income (Loss)\nOperating income (loss) by segment is as follows (in millions):\nYear Ended December 31,\n2021 2022\nOperating Income (Loss)\nNorth America $ 7,271 $ (2,847)\nInternational (924) (7,746)\nAWS 18,532 22,841 \nConsolidated $ 24,879 $ 12,248 \nOperating income was $24.9 billion and $12.2 billion for 2021 and 2022. We believe that operating income is a more meaningful measure than gross\nprofit and gross margin due to the diversity of our product categories and services.\nThe North America operating loss in 2022, as compared to the operating income in the prior year, is primarily due to increased fulfillment and shipping\ncosts, due in part to increases in investments in our fulfillment network, transportation costs, and wage rates and incentives, increased technology and content\ncosts, and growth in certain operating expenses, partially offset by increased unit sales, including sales by third-party sellers, and advertising sales. Changes in\nforeign currency exchange rates positively impacted operating loss by $274 million in 2022.\nThe increase in International operating loss in absolute dollars in 2022, compared to the prior year, is primarily due to increased fulfillment and shipping\ncosts, due in part to increases in investments in our fulfillment network, transportation costs, and wage rates and incentives, increased technology and content\ncosts, and growth in certain operating expenses, partially offset by increased advertising sales and increased unit sales, including sales by third-party sellers.\nChanges in foreign currency exchange rates negatively impacted operating loss by $857 million in 2022."}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 23, "chroma:document": "The increase in AWS operating income in absolute dollars in 2022, compared to the prior year, is primarily due to increased sales and cost structure\nproductivity, including a reduction in depreciation and amortization expense from our change in the estimated useful lives of our servers and networking\nequipment, partially offset by increased payroll and related expenses and spending on technology infrastructure, all of which were primarily driven by\nadditional investments to support AWS business growth. Changes in foreign currency exchange rates positively impacted operating income by $1.4 billion in\n2022.\n24"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 24, "chroma:document": "Table of Contents\nOperating Expenses\nInformation about operating expenses is as follows (in millions): \n Year Ended December 31,\n  2021 2022\nOperating expenses:\nCost of sales $ 272,344 $ 288,831 \nFulfillment 75,111 84,299 \nTechnology and content 56,052 73,213 \nSales and marketing 32,551 42,238 \nGeneral and administrative 8,823 11,891 \nOther operating expense (income), net 62 1,263 \nTotal operating expenses $ 444,943 $ 501,735 \nYear-over-year Percentage Growth (Decline):\nCost of sales 17 % 6 %\nFulfillment 28 12 \nTechnology and content 31 31 \nSales and marketing 48 30 \nGeneral and administrative 32 35 \nOther operating expense (income), net (183) 1,936 \nPercent of Net Sales:\nCost of sales 58.0 % 56.2 %\nFulfillment 16.0 16.4 \nTechnology and content 11.9 14.2 \nSales and marketing 6.9 8.2 \nGeneral and administrative 1.9 2.3 \nOther operating expense (income), net 0.0 0.2 \nCost of Sales\nCost of sales primarily consists of the purchase price of consumer products, inbound and outbound shipping costs, including costs related to sortation and\ndelivery centers and where we are the transportation service provider, and digital media content costs where we record revenue gross, including video and\nmusic.\nThe increase in cost of sales in absolute dollars in 2022, compared to the prior year, is primarily due to increased shipping and product costs resulting\nfrom increased sales and increases in investments in our fulfillment network, transportation costs, and wage rates and incentives. Changes in foreign exchange\nrates reduced cost of sales by $10.8 billion in 2022.\nShipping costs to receive products from our suppliers are included in our inventory and recognized as cost of sales upon sale of products to our\ncustomers. Shipping costs, which include sortation and delivery centers and transportation costs, were $76.7 billion and $83.5 billion in 2021 and 2022. We"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 24, "chroma:document": "expect our cost of shipping to continue to increase to the extent our customers accept and use our shipping offers at an increasing rate, we use more expensive\nshipping methods, including faster delivery, and we offer additional services. We seek to mitigate costs of shipping over time in part through achieving higher\nsales volumes, optimizing our fulfillment network, negotiating better terms with our suppliers, and achieving better operating efficiencies. We believe that\noffering low prices to our customers is fundamental to our future success, and one way we offer lower prices is through shipping offers.\nCosts to operate our AWS segment are primarily classified as \u201cTechnology and content\u201d as we leverage a shared infrastructure that supports both our\ninternal technology requirements and external sales to AWS customers.\nFulfillment\nFulfillment costs primarily consist of those costs incurred in operating and staffing our North America and International fulfillment centers, physical\nstores, and customer service centers and payment processing costs. While AWS payment processing and related transaction costs are included in \u201cFulfillment,\u201d\nAWS costs are primarily classified as \u201cTechnology and content.\u201d Fulfillment costs as a percentage of net sales may vary due to several factors, such as payment\nprocessing and related\n25"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 25, "chroma:document": "Table of Contents\ntransaction costs, our level of productivity and accuracy, changes in volume, size, and weight of units received and fulfilled, the extent to which third-party\nsellers utilize Fulfillment by Amazon services, timing of fulfillment network and physical store expansion, the extent we utilize fulfillment services provided\nby third parties, mix of products and services sold, and our ability to affect customer service contacts per unit by implementing improvements in our operations\nand enhancements to our customer self-service features. Additionally, sales by our sellers have higher payment processing and related transaction costs as a\npercentage of net sales compared to our retail sales because payment processing costs are based on the gross purchase price of underlying transactions.\nThe increase in fulfillment costs in absolute dollars in 2022, compared to the prior year, is primarily due to increased investments in our fulfillment\nnetwork and variable costs corresponding with increased product and service sales volume and inventory levels, and increased wage rates and incentives.\nChanges in foreign exchange rates reduced fulfillment costs by $2.5 billion in 2022.\nWe seek to expand our fulfillment network to accommodate a greater selection and in-stock inventory levels and to meet anticipated shipment volumes\nfrom sales of our own products as well as sales by third parties for which we provide the fulfillment services. We regularly evaluate our facility requirements.\nTechnology and Content\nTechnology and content costs include payroll and related expenses for employees involved in the research and development of new and existing products\nand services, development, design, and maintenance of our stores, curation and display of products and services made available in our online stores, and\ninfrastructure costs. Infrastructure costs include servers, networking equipment, and data center related depreciation and amortization, rent, utilities, and other\nexpenses necessary to support AWS and other Amazon businesses. Collectively, these costs reflect the investments we make in order to offer a wide variety of\nproducts and services to our customers, including expenditures related to initiatives to build and deploy innovative and efficient software and electronic devices\nand the development of a satellite network for global broadband service and autonomous vehicles for ride-hailing services.\nWe seek to invest efficiently in numerous areas of technology and content so we may continue to enhance the customer experience and improve our\nprocess efficiency through rapid technology developments, while operating at an ever increasing scale. Our technology and content investment and capital\nspending projects often support a variety of product and service offerings due to geographic expansion and the cross-functionality of our systems and"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 25, "chroma:document": "operations. We expect spending in technology and content to increase over time as we continue to add employees and technology infrastructure. These costs are\nallocated to segments based on usage. The increase in technology and content costs in absolute dollars in 2022, compared to the prior year, is primarily due to\nincreased payroll and related costs associated with technical teams responsible for expanding our existing products and services and initiatives to introduce new\nproducts and service offerings, and an increase in spending on technology infrastructure, partially offset by a reduction in depreciation and amortization\nexpense from our change in the estimated useful lives of our servers and networking equipment. See Item 8 of Part II, \u201cFinancial Statements and\nSupplementary Data \u2014 Note 1 \u2014 Description of Business, Accounting Policies, and Supplemental Disclosures \u2014 Use of Estimates\u201d for additional information\non the change in estimated useful lives of our servers and networking equipment.\nSales and Marketing\nSales and marketing costs include advertising and payroll and related expenses for personnel engaged in marketing and selling activities, including sales\ncommissions related to AWS. We direct customers to our stores primarily through a number of marketing channels, such as our sponsored search, social and\nonline advertising, third party customer referrals, television advertising, and other initiatives. Our marketing costs are largely variable, based on growth in sales\nand changes in rates. To the extent there is increased or decreased competition for these traffic sources, or to the extent our mix of these channels shifts, we\nwould expect to see a corresponding change in our marketing costs.\nThe increase in sales and marketing costs in absolute dollars in 2022, compared to the prior year, is primarily due to increased payroll and related\nexpenses for personnel engaged in marketing and selling activities and higher marketing spend.\nWhile costs associated with Amazon Prime membership benefits and other shipping offers are not included in sales and marketing expense, we view\nthese offers as effective worldwide marketing tools, and intend to continue offering them indefinitely.\nGeneral and Administrative\nThe increase in general and administrative costs in absolute dollars in 2022, compared to the prior year, is primarily due to increases in payroll and\nrelated expenses and professional fees.\n26"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 26, "chroma:document": "Table of Contents\nOther Operating Expense (Income), Net\nOther operating expense (income), net was $62 million and $1.3 billion during 2021 and 2022, and was primarily related to the amortization of intangible\nassets and, for 2022, $1.1 billion of impairments of property and equipment and operating leases.\nInterest Income and Expense\nOur interest income was $448 million and $989 million during 2021 and 2022, primarily due to an increase in prevailing rates. We generally invest our\nexcess cash in AAA-rated money market funds and investment grade short- to intermediate-term fixed income securities. Our interest income corresponds with\nthe average balance of invested funds based on the prevailing rates, which vary depending on the geographies and currencies in which they are invested.\nInterest expense was $1.8 billion and $2.4 billion in 2021 and 2022 and was primarily related to debt and finance leases. See Item 8 of Part II, \u201cFinancial\nStatements and Supplementary Data \u2014 Note 4 \u2014 Leases and Note 6 \u2014 Debt\u201d for additional information.\nOur long-term lease liabilities were $67.7 billion and $73.0 billion as of December 31, 2021 and 2022. Our long-term debt was $48.7 billion and $67.1\nbillion as of December 31, 2021 and 2022. See Item 8 of Part II, \u201cFinancial Statements and Supplementary Data \u2014 Note 4 \u2014 Leases and Note 6 \u2014 Debt\u201d for\nadditional information.\nOther Income (Expense), Net\nOther income (expense), net was $14.6 billion and $(16.8) billion during 2021 and 2022. The primary components of other income (expense), net are\nrelated to equity securities valuations and adjustments, equity warrant valuations, and foreign currency. Included in other income (expense), net in 2021 and\n2022 is a marketable equity securities valuation gain (loss) of $11.8 billion and $(12.7) billion from our equity investment in Rivian.\nIncome Taxes\nOur effective tax rate is subject to significant variation due to several factors, including variability in our pre-tax and taxable income and loss and the mix\nof jurisdictions to which they relate, intercompany transactions, the applicability of special tax regimes, changes in how we do business, acquisitions,"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 26, "chroma:document": "investments, developments in tax controversies, changes in our stock price, changes in our deferred tax assets and liabilities and their valuation, foreign\ncurrency gains (losses), changes in statutes, regulations, case law, and administrative practices, principles, and interpretations related to tax, including changes\nto the global tax framework, competition, and other laws and accounting rules in various jurisdictions, and relative changes of expenses or losses for which tax\nbenefits are not recognized. Our effective tax rate can be more or less volatile based on the amount of pre-tax income or loss. For example, the impact of\ndiscrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. In addition, we record valuation allowances\nagainst deferred tax assets when there is uncertainty about our ability to generate future income in relevant jurisdictions.\nWe recorded a provision (benefit) for income taxes of $4.8 billion and $(3.2) billion in 2021 and 2022. See Item 8 of Part II, \u201cFinancial Statements and\nSupplementary Data \u2014 Note 9 \u2014 Income Taxes\u201d for additional information.\nNon-GAAP Financial Measures\nRegulation G, Conditions for Use of Non-GAAP Financial Measures, and other SEC regulations define and prescribe the conditions for use of certain\nnon-GAAP financial information. Our measures of free cash flows and the effect of foreign exchange rates on our consolidated statements of operations meet\nthe definition of non-GAAP financial measures.\nWe provide multiple measures of free cash flows because we believe these measures provide additional perspective on the impact of acquiring property\nand equipment with cash and through finance leases and financing obligations.\n27"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 27, "chroma:document": "Table of Contents\nFree Cash Flow\nFree cash flow is cash flow from operations reduced by \u201cPurchases of property and equipment, net of proceeds from sales and incentives.\u201d The following\nis a reconciliation of free cash flow to the most comparable GAAP cash flow measure, \u201cNet cash provided by (used in) operating activities,\u201d for 2021 and 2022\n(in millions):\n Year Ended December 31,\n 2021 2022\nNet cash provided by (used in) operating activities $ 46,327 $ 46,752 \nPurchases of property and equipment, net of proceeds from sales and incentives (55,396) (58,321)\nFree cash flow $ (9,069)$ (11,569)\nNet cash provided by (used in) investing activities $ (58,154)$ (37,601)\nNet cash provided by (used in) financing activities $ 6,291 $ 9,718 \nFree Cash Flow Less Principal Repayments of Finance Leases and Financing Obligations\nFree cash flow less principal repayments of finance leases and financing obligations is free cash flow reduced by \u201cPrincipal repayments of finance\nleases\u201d and \u201cPrincipal repayments of financing obligations.\u201d Principal repayments of finance leases and financing obligations approximates the actual\npayments of cash for our finance leases and financing obligations. The following is a reconciliation of free cash flow less principal repayments of finance\nleases and financing obligations to the most comparable GAAP cash flow measure, \u201cNet cash provided by (used in) operating activities,\u201d for 2021 and 2022 (in\nmillions):\n Year Ended December 31,\n 2021 2022\nNet cash provided by (used in) operating activities $ 46,327 $ 46,752 \nPurchases of property and equipment, net of proceeds from sales and incentives (55,396) (58,321)\nFree cash flow (9,069) (11,569)\nPrincipal repayments of finance leases (11,163) (7,941)\nPrincipal repayments of financing obligations (162) (248)\nFree cash flow less principal repayments of finance leases and financing obligations $ (20,394)$ (19,758)\nNet cash provided by (used in) investing activities $ (58,154)$ (37,601)\nNet cash provided by (used in) financing activities $ 6,291 $ 9,718 \n28"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 28, "chroma:document": "Table of Contents\nFree Cash Flow Less Equipment Finance Leases and Principal Repayments of All Other Finance Leases and Financing Obligations\nFree cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations is free cash flow reduced by\nequipment acquired under finance leases, which is included in \u201cProperty and equipment acquired under finance leases, net of remeasurements and\nmodifications,\u201d principal repayments of all other finance lease liabilities, which is included in \u201cPrincipal repayments of finance leases,\u201d and \u201cPrincipal\nrepayments of financing obligations.\u201d All other finance lease liabilities and financing obligations consists of property. In this measure, equipment acquired\nunder finance leases is reflected as if these assets had been purchased with cash, which is not the case as these assets have been leased. The following is a\nreconciliation of free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations to the most\ncomparable GAAP cash flow measure, \u201cNet cash provided by (used in) operating activities,\u201d for 2021 and 2022 (in millions):\n Year Ended December 31,\n 2021 2022\nNet cash provided by (used in) operating activities $ 46,327 $ 46,752 \nPurchases of property and equipment, net of proceeds from sales and incentives (55,396) (58,321)\nFree cash flow (9,069) (11,569)\nEquipment acquired under finance leases (1) (4,422) (299)\nPrincipal repayments of all other finance leases (2) (687) (670)\nPrincipal repayments of financing obligations (162) (248)\nFree cash flow less equipment finance leases and principal repayments of all other finance leases and financing\nobligations $ (14,340)$ (12,786)\nNet cash provided by (used in) investing activities $ (58,154)$ (37,601)\nNet cash provided by (used in) financing activities $ 6,291 $ 9,718 \n___________________\n(1)For the year ended December 31, 2021 and 2022, this amount relates to equipment included in \u201cProperty and equipment acquired under finance leases, net\nof remeasurements and modifications\u201d of $7,061 million and $675 million."}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 28, "chroma:document": "(2)For the year ended December 31, 2021 and 2022, this amount relates to property included in \u201cPrincipal repayments of finance leases\u201d of $11,163 million\nand $7,941 million.\nAll of these free cash flows measures have limitations as they omit certain components of the overall cash flow statement and do not represent the\nresidual cash flow available for discretionary expenditures. For example, these measures of free cash flows do not incorporate the portion of payments\nrepresenting principal reductions of debt or cash payments for business acquisitions. Additionally, our mix of property and equipment acquisitions with cash or\nother financing options may change over time. Therefore, we believe it is important to view free cash flows measures only as a complement to our entire\nconsolidated statements of cash flows.\nEffect of Foreign Exchange Rates\nInformation regarding the effect of foreign exchange rates, versus the U.S. Dollar, on our net sales, operating expenses, and operating income is provided\nto show reported period operating results had the foreign exchange rates remained the same as those in effect in the comparable prior year period. The effect on\nour net sales, operating expenses, and operating income from changes in our foreign exchange rates versus the U.S. Dollar is as follows (in millions):\n Year Ended December 31, 2021 Year Ended December 31, 2022\n  As\nReportedExchange\nRate\nEffect (1)At Prior\nYear\nRates (2)As\nReportedExchange\nRate\nEffect (1)At Prior\nYear\nRates (2)\nNet sales $469,822 $ (3,804)$466,018 $513,983 $ 15,495 $529,478 \nOperating expenses 444,943 (3,653) 441,290 501,735 16,356 518,091 \nOperating income 24,879 (151) 24,728 12,248 (861) 11,387 \n___________________\n(1)Represents the change in reported amounts resulting from changes in foreign exchange rates from those in effect in the comparable prior year period for\noperating results.\n(2)Represents the outcome that would have resulted had foreign exchange rates in the reported period been the same as those in effect in the comparable prior\nyear period for operating results.\n29"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 29, "chroma:document": "Table of Contents\nGuidance\nWe provided guidance on February 2, 2023, in our earnings release furnished on Form 8-K as set forth below. These forward-looking statements reflect\nAmazon.com\u2019s expectations as of February 2, 2023, and are subject to substantial uncertainty. Our results are inherently unpredictable and may be materially\naffected by many factors, such as uncertainty regarding the impacts of the COVID-19 pandemic, fluctuations in foreign exchange rates, changes in global\neconomic and geopolitical conditions and customer demand and spending (including the impact of recessionary fears), inflation, interest rates, regional labor\nmarket and global supply chain constraints, world events, the rate of growth of the Internet, online commerce, and cloud services, as well as those outlined in\nItem 1A of Part I, \u201cRisk Factors.\u201d\nFirst Quarter 2023 Guidance\n\u2022Net sales are expected to be between $121.0 billion and $126.0 billion, or to grow between 4% and 8% compared with first quarter 2022. This\nguidance anticipates an unfavorable impact of approximately 210 basis points from foreign exchange rates.\n\u2022Operating income is expected to be between $0 and $4.0 billion, compared with $3.7 billion in first quarter 2022.\n\u2022This guidance assumes, among other things, that no additional business acquisitions, restructurings, or legal settlements are concluded.\n30"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 30, "chroma:document": "Table of Contents\nItem 7A. Quantitative and Qualitative Disclosures About Market Risk\nWe are exposed to market risk for the effect of interest rate changes, foreign currency fluctuations, and changes in the market values of our investments.\nInformation relating to quantitative and qualitative disclosures about market risk is set forth below and in Item 7 of Part II, \u201cManagement\u2019s Discussion and\nAnalysis of Financial Condition and Results of Operations \u2014 Liquidity and Capital Resources.\u201d\nInterest Rate Risk\nOur exposure to market risk for changes in interest rates relates primarily to our investment portfolio and our debt. Our long-term debt is carried at\namortized cost and fluctuations in interest rates do not impact our consolidated financial statements. However, the fair value of our long-term debt, which pays\ninterest at a fixed rate, will generally fluctuate with movements of interest rates, increasing in periods of declining rates of interest and declining in periods of\nincreasing rates of interest.\nWe generally invest our excess cash in AAA-rated money market funds and investment grade short- to intermediate-term fixed income securities. Fixed\nincome securities may have their fair market value adversely affected due to a rise in interest rates, and we may suffer losses in principal if forced to sell\nsecurities that have declined in market value due to changes in interest rates. The following table provides information about our cash equivalents and\nmarketable fixed income securities, including principal cash flows by expected maturity and the related weighted-average interest rates as of December 31,\n2022 (in millions, except percentages):\n2023 2024 2025 2026 2027 Thereafter TotalEstimated Fair\nValue as of\nDecember 31,\n2022\nMoney market funds $ 27,899 $ \u2014 $ \u2014 $ \u2014 $ \u2014 $ \u2014 $ 27,899 $ 27,899 \nWeighted average interest rate 4.18 % \u2014 % \u2014 % \u2014 % \u2014 % \u2014 % 4.18 %\nCorporate debt securities 17,500 2,486 2,332 748 9 \u2014 23,075 22,627 \nWeighted average interest rate 4.06 % 0.97 % 1.23 % 1.45 % 2.33 % \u2014 % 3.35 %\nU.S. government and agency securities 819 358 554 396 80 75 2,282 2,146"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 30, "chroma:document": "Weighted average interest rate 1.05 % 0.98 % 0.81 % 0.83 % 1.24 % 1.83 % 0.98 %\nAsset-backed securities 1,059 872 413 146 128 72 2,690 2,572 \nWeighted average interest rate 0.99 % 1.30 % 1.37 % 1.39 % 1.41 % 1.06 % 1.19 %\nForeign government and agency\nsecurities 519 19 \u2014 \u2014 \u2014 \u2014 538 535 \nWeighted average interest rate 4.24 % 0.60 % \u2014 % \u2014 % \u2014 % \u2014 % 4.11 %\nOther fixed income securities 138 61 48 \u2014 \u2014 \u2014 247 237 \nWeighted average interest rate 0.40 % 0.56 % 1.15 % \u2014 % \u2014 % \u2014 % 0.58 %\n$ 47,934 $ 3,796 $ 3,347 $ 1,290 $ 217 $ 147 $ 56,731 \nCash equivalents and marketable\nfixed income securities $ 56,016 \nAs of December 31, 2022, we had long-term debt with a face value of $70.5 billion, including the current portion, primarily consisting of fixed rate\nunsecured senior notes. See Item 8 of Part II, \u201cFinancial Statements and Supplementary Data \u2014 Note 6 \u2014 Debt\u201d for additional information.\n31"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 31, "chroma:document": "Table of Contents\nForeign Exchange Risk\nDuring 2022, net sales from our International segment accounted for 23% of our consolidated revenues. Net sales and related expenses generated from\nour internationally-focused stores, including within Canada and Mexico (which are included in our North America segment), are primarily denominated in the\nfunctional currencies of the corresponding stores and primarily include Euros, British Pounds, and Japanese Yen. The results of operations of, and certain of our\nintercompany balances associated with, our internationally-focused stores and AWS are exposed to foreign exchange rate fluctuations. Upon consolidation, as\nforeign exchange rates vary, net sales and other operating results may differ materially from expectations, and we may record significant gains or losses on the\nremeasurement of intercompany balances. For example, as a result of fluctuations in foreign exchange rates throughout the year compared to rates in effect the\nprior year, International segment net sales decreased by $15.0 billion in comparison with the prior year.\nWe have foreign exchange risk related to foreign-denominated cash, cash equivalents, and marketable securities (\u201cforeign funds\u201d). Based on the balance\nof foreign funds as of December 31, 2022, of $18.3 billion, an assumed 5%, 10%, and 20% adverse change to foreign exchange would result in declines of\n$915 million, $1.8 billion, and $3.7 billion.\nWe also have foreign exchange risk related to our intercompany balances denominated in various foreign currencies. Based on the intercompany balances\nas of December 31, 2022, an assumed 5%, 10%, and 20% adverse change to foreign exchange rates would result in losses of $275 million, $555 million, and\n$1.1 billion, recorded to \u201cOther income (expense), net.\u201d\nSee Item 7 of Part II, \u201cManagement\u2019s Discussion and Analysis of Financial Condition and Results of Operations \u2014 Results of Operations \u2014 Effect of\nForeign Exchange Rates\u201d for additional information on the effect on reported results of changes in foreign exchange rates.\nEquity Investment Risk\nAs of December 31, 2022, our recorded value in equity and equity warrant investments in public and private companies was $7.2 billion. Our equity and\nequity warrant investments in publicly traded companies, which primarily relate to Rivian, represent $5.0 billion of our investments as of December 31, 2022,"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 31, "chroma:document": "and are recorded at fair value, which is subject to market price volatility. We record our equity warrant investments in private companies at fair value and adjust\nour equity investments in private companies for observable price changes or impairments. Valuations of private companies are inherently more complex due to\nthe lack of readily available market data. The current global economic conditions provide additional uncertainty. As such, we believe that market sensitivities\nare not practicable. See Item 8 of Part II, \u201cFinancial Statements and Supplementary Data \u2014 Note 1 \u2014 Description of Business, Accounting Policies, and\nSupplemental Disclosures\u201d for additional information.\n32"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 32, "chroma:document": "Table of Contents\nItem 8. Financial Statements and Supplementary Data\nINDEX TO CONSOLIDATED FINANCIAL STATEMENTS\n Page\nReport of Ernst & Young LLP, Independent Registered Public Accounting Firm (PCAOB ID: 42) 34\nConsolidated Statements of Cash Flows 36\nConsolidated Statements of Operations 37\nConsolidated Statements of Comprehensive Income (Loss) 38\nConsolidated Balance Sheets 39\nConsolidated Statements of Stockholders\u2019 Equity 40\nNotes to Consolidated Financial Statements 41\n33"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 33, "chroma:document": "Table of Contents\nReport of Independent Registered Public Accounting Firm\nThe Board of Directors and Shareholders\nAmazon.com, Inc.\nOpinion on the Financial Statements\nWe have audited the accompanying consolidated balance sheets of Amazon.com, Inc. (the Company) as of December 31, 2022 and 2021, and the related\nconsolidated statements of operations, comprehensive income (loss), stockholders\u2019 equity, and cash flows for each of the three years in the period ended\nDecember 31, 2022, and the related notes (collectively referred to as the \u201cconsolidated financial statements\u201d). In our opinion, the consolidated financial\nstatements present fairly, in all material respects, the financial position of the Company at December 31, 2022 and 2021, and the results of its operations and its\ncash flows for each of the three years in the period ended December 31, 2022, in conformity with U.S. generally accepted accounting principles.\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company\u2019s\ninternal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control \u2014 Integrated Framework issued by the\nCommittee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 2, 2023 expressed an unqualified\nopinion thereon.\nBasis for Opinion\nThese consolidated financial statements are the responsibility of the Company\u2019s management. Our responsibility is to express an opinion on the\nCompany\u2019s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be\nindependent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and\nExchange Commission and the PCAOB.\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain\nreasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included\nperforming procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing\nprocedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 33, "chroma:document": "financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating\nthe overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.\nCritical Audit Matter\nThe critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was\ncommunicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated\nfinancial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not\nalter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below,\nproviding a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\n34"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 34, "chroma:document": "Table of Contents\nUncertain Tax Positions\nDescription of\nthe MatterAs discussed in Notes 1 and 9 of the consolidated financial statements, the Company is subject to income taxes in the U.S. and\nnumerous foreign jurisdictions and during the ordinary course of business, there are many tax positions for which the ultimate tax\ndetermination is uncertain. As a result, significant judgment is required in evaluating the Company\u2019s tax positions and determining its\nprovision for income taxes. The Company uses significant judgment in (1) determining whether a tax position\u2019s technical merits are\nmore likely than not to be sustained and (2) measuring the amount of tax benefit that qualifies for recognition. As of December 31,\n2022, the Company reported accrued liabilities of $4.0 billion for various tax contingencies.\nAuditing the recognition and measurement of the Company\u2019s tax contingencies was challenging because the evaluation of whether a\ntax position is more likely than not to be sustained and the measurement of the benefit of various tax positions can be complex and\ninvolves significant auditor judgment. Management\u2019s evaluation of tax positions is based on interpretations of tax laws and legal\nrulings, and may be impacted by regulatory changes and judicial and examination activity.\nHow We Addressed the\nMatter in Our AuditWe tested controls over the Company\u2019s process to assess the technical merits of its tax contingencies, including controls over: the\nassessment as to whether a tax position is more likely than not to be sustained; the measurement of the benefit of its tax positions,\nboth initially and on an ongoing basis; and the development of the related disclosures.\nWe involved our international tax, transfer pricing, and research and development tax professionals in assessing the technical merits\nof certain of the Company\u2019s tax positions. Depending on the nature of the specific tax position and, as applicable, developments with\nthe relevant tax authorities relating thereto, our procedures included obtaining and examining the Company\u2019s analysis including the\nCompany\u2019s correspondence with such tax authorities and evaluating the underlying facts upon which the tax positions are based. We\nused our knowledge of and experience with international, transfer pricing, and other income tax laws of the relevant taxing\njurisdictions to evaluate the Company\u2019s accounting for its tax contingencies. We evaluated developments in the applicable regulatory\nenvironments to assess potential effects on the Company\u2019s positions, including recent decisions in relevant court cases. We analyzed\nthe appropriateness of the Company\u2019s assumptions and the accuracy of the Company\u2019s calculations and data used to determine the"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 34, "chroma:document": "amount of tax benefits to recognize. We evaluated the Company\u2019s income tax disclosures in relation to these matters.\n/s/ Ernst & Young LLP\nWe have served as the Company\u2019s auditor since 1996.\nSeattle, Washington\nFebruary 2, 2023\n35"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 35, "chroma:document": "Table of Contents\nAMAZON.COM, INC.\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n(in millions)\n  Year Ended December 31,\n 2020 2021 2022\nCASH, CASH EQUIV ALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $ 36,410 $ 42,377 $ 36,477 \nOPERA TING ACTIVITIES:\nNet income (loss) 21,331 33,364 (2,722)\nAdjustments to reconcile net income (loss) to net cash from operating activities:\nDepreciation and amortization of property and equipment and capitalized content costs, operating lease\nassets, and other 25,180 34,433 41,921 \nStock-based compensation 9,208 12,757 19,621 \nOther expense (income), net (2,582) (14,306) 16,966 \nDeferred income taxes (554) (310) (8,148)\nChanges in operating assets and liabilities:\nInventories (2,849) (9,487) (2,592)\nAccounts receivable, net and other (8,169) (18,163) (21,897)\nAccounts payable 17,480 3,602 2,945 \nAccrued expenses and other 5,754 2,123 (1,558)\nUnearned revenue 1,265 2,314 2,216 \nNet cash provided by (used in) operating activities 66,064 46,327 46,752 \nINVESTING ACTIVITIES:\nPurchases of property and equipment (40,140) (61,053) (63,645)\nProceeds from property and equipment sales and incentives 5,096 5,657 5,324 \nAcquisitions, net of cash acquired, and other (2,325) (1,985) (8,316)\nSales and maturities of marketable securities 50,237 59,384 31,601 \nPurchases of marketable securities (72,479) (60,157) (2,565)\nNet cash provided by (used in) investing activities (59,61 1) (58,154) (37,601)\nFINANCING ACTIVITIES:"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 35, "chroma:document": "FINANCING ACTIVITIES:\nCommon stock repurchased \u2014 \u2014 (6,000)\nProceeds from short-term debt, and other 6,796 7,956 41,553 \nRepayments of short-term debt, and other (6,177) (7,753) (37,554)\nProceeds from long-term debt 10,525 19,003 21,166 \nRepayments of long-term debt (1,553) (1,590) (1,258)\nPrincipal repayments of finance leases (10,642) (11,163) (7,941)\nPrincipal repayments of financing obligations (53) (162) (248)\nNet cash provided by (used in) financing activities (1,104) 6,291 9,718 \nForeign currency ef fect on cash, cash equivalents, and restricted cash 618 (364) (1,093)\nNet increase (decrease) in cash, cash equivalents, and restricted cash 5,967 (5,900) 17,776 \nCASH, CASH EQUIV ALENTS, AND RESTRICTED CASH, END OF PERIOD $ 42,377 $ 36,477 $ 54,253 \nSee accompanying notes to consolidated financial statements.\n36"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 36, "chroma:document": "Table of Contents\nAMAZON.COM, INC.\nCONSOLIDATED STATEMENTS OF OPERATIONS\n(in millions, except per share data)\n  Year Ended December 31,\n 2020 2021 2022\nNet product sales $ 215,915 $ 241,787 $ 242,901 \nNet service sales 170,149 228,035 271,082 \nTotal net sales 386,064 469,822 513,983 \nOperating expenses:\nCost of sales 233,307 272,344 288,831 \nFulfillment 58,517 75,111 84,299 \nTechnology and content 42,740 56,052 73,213 \nSales and marketing 22,008 32,551 42,238 \nGeneral and administrative 6,668 8,823 11,891 \nOther operating expense (income), net (75) 62 1,263 \nTotal operating expenses 363,165 444,943 501,735 \nOperating income 22,899 24,879 12,248 \nInterest income 555 448 989 \nInterest expense (1,647) (1,809) (2,367)\nOther income (expense), net 2,371 14,633 (16,806)\nTotal non-operating income (expense) 1,279 13,272 (18,184)\nIncome (loss) before income taxes 24,178 38,151 (5,936)\nBenefit (provision) for income taxes (2,863) (4,791) 3,217 \nEquity-method investment activity, net of tax 16 4 (3)\nNet income (loss) $ 21,331 $ 33,364 $ (2,722)\nBasic earnings per share $ 2.13 $ 3.30 $ (0.27)\nDiluted earnings per share $ 2.09 $ 3.24 $ (0.27)\nWeighted-average shares used in computation of earnings per share:\nBasic 10,005 10,117 10,189 \nDiluted 10,198 10,296 10,189 \nSee accompanying notes to consolidated financial statements.\n37"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 37, "chroma:document": "Table of Contents\nAMAZON.COM, INC.\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)\n(in millions)\n  Year Ended December 31,\n 2020 2021 2022\nNet income (loss) $ 21,331 $ 33,364 $ (2,722)\nOther comprehensive income (loss):\nForeign currency translation adjustments, net of tax of $(36), $47, and $100 561 (819) (2,586)\nNet change in unrealized gains (losses) on available-for-sale debt securities:\nUnrealized gains (losses), net of tax of $(83), $72, and $159 273 (343) (823)\nReclassification adjustment for losses (gains) included in \u201cOther income (expense),\nnet,\u201d net of tax of $8, $13, and $0 (28) (34) 298 \nNet unrealized gains (losses) on available-for-sale debt securities 245 (377) (525)\nTotal other comprehensive income (loss) 806 (1,196) (3,111)\nComprehensive income (loss) $ 22,137 $ 32,168 $ (5,833)\nSee accompanying notes to consolidated financial statements.\n38"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 38, "chroma:document": "Table of Contents\nAMAZON.COM, INC.\nCONSOLIDATED BALANCE SHEETS\n(in millions, except per share data)\nDecember 31,\n 2021 2022\nASSETS\nCurrent assets:\nCash and cash equivalents $ 36,220 $ 53,888 \nMarketable securities 59,829 16,138 \nInventories 32,640 34,405 \nAccounts receivable, net and other 32,891 42,360 \nTotal current assets 161,580 146,791 \nProperty and equipment, net 160,281 186,715 \nOperating leases 56,082 66,123 \nGoodwill 15,371 20,288 \nOther assets 27,235 42,758 \nTotal assets $ 420,549 $ 462,675 \nLIABILITIES AND STOCKHOLDERS\u2019 EQUITY\nCurrent liabilities:\nAccounts payable $ 78,664 $ 79,600 \nAccrued expenses and other 51,775 62,566 \nUnearned revenue 11,827 13,227 \nTotal current liabilities 142,266 155,393 \nLong-term lease liabilities 67,651 72,968 \nLong-term debt 48,744 67,150 \nOther long-term liabilities 23,643 21,121 \nCommitments and contingencies (Note 7)\nStockholders\u2019 equity:\nPreferred stock ($0.01 par value; 500 shares authorized; no shares issued or outstanding) \u2014 \u2014 \nCommon stock ($0.01 par value; 100,000 shares authorized; 10,644 and 10,757 shares issued; 10,175 and\n10,242 shares outstanding) 106 108 \nTreasury stock, at cost (1,837) (7,837)\nAdditional paid-in capital 55,437 75,066 \nAccumulated other comprehensive income (loss) (1,376) (4,487)\nRetained earnings 85,915 83,193 \nTotal stockholders\u2019 equity 138,245 146,043 \nTotal liabilities and stockholders\u2019 equity $ 420,549 $ 462,675 \nSee accompanying notes to consolidated financial statements.\n39"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 39, "chroma:document": "Table of Contents\nAMAZON.COM, INC.\nCONSOLIDATED STATEMENTS OF STOCKHOLDERS\u2019 EQUITY\n(in millions)\n Common Stock     \n Shares AmountTreasury\nStockAdditional\nPaid-In\nCapitalAccumulated Other\nComprehensive\nIncome (Loss)Retained\nEarningsTotal\nStockholders\u2019\nEquity\nBalance as of January 1, 2020 9,950 $ 104 $ (1,837) $ 33,559 $ (986) $ 31,220 $ 62,060 \nNet income \u2014 \u2014 \u2014 \u2014 \u2014 21,331 21,331 \nOther comprehensive income (loss) \u2014 \u2014 \u2014 \u2014 806 \u2014 806 \nStock-based compensation and issuance of employee\nbenefit plan stock 116 1 \u2014 9,206 \u2014 \u2014 9,207 \nBalance as of December 31, 2020 10,066 105 (1,837) 42,765 (180) 52,551 93,404 \nNet income \u2014 \u2014 \u2014 \u2014 \u2014 33,364 33,364 \nOther comprehensive income (loss) \u2014 \u2014 \u2014 \u2014 (1,196) \u2014 (1,196)\nStock-based compensation and issuance of employee\nbenefit plan stock 109 1 \u2014 12,672 \u2014 \u2014 12,673 \nBalance as of December 31, 2021 10,175 106 (1,837) 55,437 (1,376) 85,915 138,245 \nNet loss \u2014 \u2014 \u2014 \u2014 \u2014 (2,722) (2,722)\nOther comprehensive income (loss) \u2014 \u2014 \u2014 \u2014 (3,111) \u2014 (3,111)\nStock-based compensation and issuance of employee\nbenefit plan stock 113 2 \u2014 19,629 \u2014 \u2014 19,631 \nCommon stock repurchased (46) \u2014 (6,000) \u2014 \u2014 \u2014 (6,000)\nBalance as of December 31, 2022 10,242 $ 108 $ (7,837) $ 75,066 $ (4,487) $ 83,193 $ 146,043 \nSee accompanying notes to consolidated financial statements.\n40"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 40, "chroma:document": "Table of Contents\nAMAZON.COM, INC.\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nNote 1 \u2014 DESCRIPTION OF BUSINESS, ACCOUNTING POLICIES, AND SUPPLEMENTAL DISCLOSURES\nDescription of Business\nWe seek to be Earth\u2019s most customer-centric company. In each of our segments, we serve our primary customer sets, consisting of consumers, sellers,\ndevelopers, enterprises, content creators, advertisers, and employees. We serve consumers through our online and physical stores and focus on selection, price,\nand convenience. We offer programs that enable sellers to grow their businesses, sell their products in our stores, and fulfill orders through us, and programs\nthat allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. We serve\ndevelopers and enterprises of all sizes through AWS, which offers a broad set of on-demand technology services, including compute, storage, database,\nanalytics, and machine learning, and other services. We also manufacture and sell electronic devices. In addition, we provide advertising services to sellers,\nvendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.\nWe have organized our operations into three segments: North America, International, and AWS. See \u201cNote 10 \u2014 Segment Information.\u201d\nCommon Stock Split\nOn May 27, 2022, we effected a 20-for-1 stock split of our common stock and proportionately increased the number of authorized shares of common\nstock. All share, restricted stock unit (\u201cRSU\u201d), and per share or per RSU information throughout this Annual Report on Form 10-K has been retroactively\nadjusted to reflect the stock split. The shares of common stock retain a par value of $0.01 per share. Accordingly, an amount equal to the par value of the\nincreased shares resulting from the stock split was reclassified from \u201cAdditional paid-in capital\u201d to \u201cCommon stock.\u201d\nPrior Period Reclassifications\nCertain prior period amounts have been reclassified to conform to the current period presentation. \u201cOther operating expense (income), net\u201d was\nreclassified into \u201cDepreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other\u201d on our consolidated\nstatements of cash flows.\nPrinciples of Consolidation"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 40, "chroma:document": "statements of cash flows.\nPrinciples of Consolidation\nThe consolidated financial statements include the accounts of Amazon.com, Inc. and its consolidated entities (collectively, the \u201cCompany\u201d), consisting of\nits 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\nIndia and certain entities that support our seller lending financing activities. Intercompany balances and transactions between consolidated entities are\neliminated.\nUse of Estimates\nThe preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and\nliabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates\nare used for, but not limited to, income taxes, useful lives of equipment, commitments and contingencies, valuation of acquired intangibles and goodwill, stock-\nbased compensation forfeiture rates, vendor funding, inventory valuation, collectability of receivables, impairment of property and equipment and operating\nleases, valuation and impairment of investments, self-insurance liabilities, and viewing patterns of capitalized video content. Actual results could differ\nmaterially from these estimates. We review the useful lives of equipment on an ongoing basis, and effective January 1, 2022 we changed our estimate of the\nuseful lives for our servers from four years to five years and for our networking equipment from five years to six years. The longer useful lives are due to\ncontinuous improvements in our hardware, software, and data center designs. The effect of this change in estimate for the year ended December 31, 2022,\nbased on servers and networking equipment that were included in \u201cProperty and equipment, net\u201d as of December 31, 2021 and those acquired during the year\nended December 31, 2022, was a reduction in depreciation and amortization expense of $3.6 billion and a benefit to net loss of $2.8 billion, or $0.28 per basic\nshare and $0.28 per diluted share.\nFor the year ended December 31, 2022, we recorded approximately $1.1 billion, of which $720 million was recorded in the fourth quarter, of\nimpairments of property and equipment and operating leases primarily related to physical stores. These charges were recorded in \u201cOther operating expense"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 40, "chroma:document": "(income), net\u201d on our consolidated statements of operations and primarily impacted our North America segment. For the year ended December 31, 2022, we\nalso recorded expenses of approximately\n41"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 41, "chroma:document": "Table of Contents\n$480 million primarily in \u201cFulfillment\u201d on our consolidated statements of operations relating to terminating contracts for certain leases not yet commenced as\nwell as other purchase commitments, which primarily impacted our North America segment.\nFor the year ended December 31, 2022, we recorded approximately $720 million, of which $640 million was recorded in the fourth quarter, of estimated\nseverance costs primarily related to planned role eliminations. These charges were recorded primarily in \u201cTechnology and content,\u201d \u201cFulfillment,\u201d and\n\u201cGeneral and administrative\u201d on our consolidated statements of operations and primarily impacted our North America segment.\nSupplemental Cash Flow Information\nThe following table shows supplemental cash flow information (in millions):\nYear Ended December 31,\n2020 2021 2022\nSUPPLEMENT AL CASH FLOW  INFORMA TION:\nCash paid for interest on debt $ 916 $ 1,098 $ 1,561 \nCash paid for operating leases $ 4,475 $ 6,722 $ 8,633 \nCash paid for interest on finance leases $ 612 $ 521 $ 374 \nCash paid for interest on financing obligations $ 102 $ 153 $ 207 \nCash paid for income taxes, net of refunds $ 1,713 $ 3,688 $ 6,035 \nAssets acquired under operating leases $ 16,217 $ 25,369 $ 18,800 \nProperty and equipment acquired under finance leases, net of remeasurements and modifications $ 11,588 $ 7,061 $ 675 \nProperty and equipment recognized during the construction period of build-to-suit lease arrangements $ 2,267 $ 5,846 $ 3,187 \nProperty and equipment derecognized after the construction period of build-to-suit lease arrangements, with\nthe associated leases recognized as operating $ \u2014 $ 230 $ 5,158 \nEarnings Per Share\nBasic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our\nweighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when we\nhave a net loss, stock awards are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect.\nThe following table shows the calculation of diluted shares (in millions):"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 41, "chroma:document": "The following table shows the calculation of diluted shares (in millions):\n  Year Ended December 31,\n 2020 2021 2022\nShares used in computation of basic earnings per share 10,005 10,117 10,189 \nTotal dilutive effect of outstanding stock awards 193 179 \u2014 \nShares used in computation of diluted earnings per share 10,198 10,296 10,189 \nRevenue\nRevenue is measured based on the amount of consideration that we expect to receive, reduced by estimates for return allowances, promotional discounts,\nand rebates. Revenue also excludes any amounts collected on behalf of third parties, including sales and indirect taxes. In arrangements where we have\nmultiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price. We generally\ndetermine stand-alone selling prices based on the prices charged to customers or using expected cost plus a margin.\nA description of our principal revenue generating activities is as follows:\nRetail sales - We offer consumer products through our online and physical stores. Revenue is recognized when control of the goods is transferred to the\ncustomer, which generally occurs upon our delivery to a third-party carrier or, in the case of an Amazon delivery, to the customer.\nThird-party seller services - We offer programs that enable sellers to sell their products in our stores, and fulfill orders through us. We are not the seller of\nrecord in these transactions. The commissions and any related fulfillment and shipping fees we earn from these arrangements are recognized when the services\nare rendered, which generally occurs upon delivery of the related products to a third-party carrier or, in the case of an Amazon delivery, to the customer.\n42"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 42, "chroma:document": "Table of Contents\nSubscription services - Our subscription sales include fees associated with Amazon Prime memberships and access to content including digital video,\naudiobooks, digital music, e-books, and other non-AWS subscription services. Prime memberships provide our customers with access to an evolving suite of\nbenefits that represent a single stand-ready obligation. Subscriptions are paid for at the time of or in advance of delivering the services. Revenue from such\narrangements is recognized over the subscription period.\nAdvertising services - We provide advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads,\ndisplay, and video advertising. Revenue is recognized as ads are delivered based on the number of clicks or impressions.\nAWS - Our AWS arrangements include global sales of compute, storage, database, and other services. Revenue is allocated to services using stand-alone\nselling prices and is primarily recognized when the customer uses these services, based on the quantity of services rendered, such as compute or storage\ncapacity delivered on-demand. Certain services, including compute and database, are also offered as a fixed quantity over a specified term, for which revenue is\nrecognized ratably. Sales commissions we pay in connection with contracts that exceed one year are capitalized and amortized over the contract term.\nOther - Other revenue includes sales related to various other offerings, such as certain licensing and distribution of video content and shipping services,\nand our co-branded credit card agreements. Revenue is recognized when content is licensed or distributed and as or when services are performed.\nReturn Allowances\nReturn allowances, which reduce revenue and cost of sales, are estimated using historical experience. Liabilities for return allowances are included in\n\u201cAccrued expenses and other\u201d and were $859 million, $1.0 billion, and $1.3 billion as of December 31, 2020, 2021, and 2022. Additions to the allowance were\n$3.5 billion, $5.1 billion, and $5.5 billion and deductions from the allowance were $3.6 billion, $4.9 billion, and $5.2 billion in 2020, 2021, and 2022. Included\nin \u201cInventories\u201d on our consolidated balance sheets are assets totaling $852 million, $882 million, and $948 million as of December 31, 2020, 2021, and 2022,"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 42, "chroma:document": "for the rights to recover products from customers associated with our liabilities for return allowances.\nCost of Sales\nCost of sales primarily consists of the purchase price of consumer products, inbound and outbound shipping costs, including costs related to sortation and\ndelivery centers and where we are the transportation service provider, and digital media content costs where we record revenue gross, including video and\nmusic. Shipping costs to receive products from our suppliers are included in our inventory, and recognized as cost of sales upon sale of products to our\ncustomers. Payment processing and related transaction costs, including those associated with seller transactions, are classified in \u201cFulfillment\u201d on our\nconsolidated statements of operations.\nVendor Agreements\nWe have agreements with our vendors to receive consideration primarily for cooperative marketing efforts, promotions, incentives, and volume\nrebates. We generally consider these amounts received from vendors to be a reduction of the prices we pay for their goods, including property and equipment,\nor services, and are recorded as a reduction of the cost of inventory, cost of services, or cost of property and equipment. Volume rebates typically depend on\nreaching minimum purchase thresholds. We evaluate the likelihood of reaching purchase thresholds using past experience and current year forecasts. When\nvolume rebates can be reasonably estimated, we record a portion of the rebate as we make progress towards the purchase threshold.\nFulfillment\nFulfillment costs primarily consist of those costs incurred in operating and staffing our North America and International segments\u2019 fulfillment centers,\nphysical stores, and customer service centers, including facilities and equipment expenses, such as depreciation and amortization, and rent; costs attributable to\nbuying, receiving, inspecting, and warehousing inventories; picking, packaging, and preparing customer orders for shipment; payment processing and related\ntransaction costs, including costs associated with our guarantee for certain seller transactions; responding to inquiries from customers; and supply chain\nmanagement for our manufactured electronic devices. Fulfillment costs also include amounts paid to third parties that assist us in fulfillment and customer\nservice operations.\n43"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 43, "chroma:document": "Table of Contents\nTechnology and Content\nTechnology and content costs include payroll and related expenses for employees involved in the research and development of new and existing products\nand services, development, design, and maintenance of our stores, curation and display of products and services made available in our online stores, and\ninfrastructure costs. Infrastructure costs include servers, networking equipment, and data center related depreciation and amortization, rent, utilities, and other\nexpenses necessary to support AWS and other Amazon businesses. Collectively, these costs reflect the investments we make in order to offer a wide variety of\nproducts and services to our customers, including expenditures related to initiatives to build and deploy innovative and efficient software and electronic devices\nand the development of a satellite network for global broadband service and autonomous vehicles for ride-hailing services. Technology and content costs are\ngenerally expensed as incurred.\nSales and Marketing\nSales and marketing costs include advertising and payroll and related expenses for personnel engaged in marketing and selling activities, including sales\ncommissions related to AWS. We pay commissions to third parties when their customer referrals result in sales. We also participate in cooperative advertising\narrangements with certain of our vendors, and other third parties.\nAdvertising and other promotional costs to market our products and services are expensed as incurred and were $10.9 billion, $16.9 billion, and $20.6\nbillion in 2020, 2021, and 2022.\nGeneral and Administrative\nGeneral and administrative expenses primarily consist of costs for corporate functions, including payroll and related expenses; facilities and equipment\nexpenses, such as depreciation and amortization expense and rent; and professional fees.\nStock-Based Compensation\nCompensation cost for all equity-classified stock awards expected to vest is measured at fair value on the date of grant and recognized over the service\nperiod. The fair value of restricted stock units is determined based on the number of shares granted and the quoted price of our common stock. Such value is\nrecognized as expense over the service period, net of estimated forfeitures, using the accelerated method. The estimated number of stock awards that will\nultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a\ncumulative adjustment in the period estimates are revised. We consider many factors when estimating expected forfeitures, including historical forfeiture\nexperience by grant year and employee level. Additionally, stock-based compensation includes stock appreciation rights that are expected to settle in cash."}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 43, "chroma:document": "These liability-classified awards are remeasured to fair value at the end of each reporting period until settlement or expiration.\nOther Operating Expense (Income), Net\nOther operating expense (income), net, consists primarily of the amortization of intangible assets and, for 2020, a benefit from accelerated vesting of\nwarrants to acquire equity of a vendor partially offset by a lease impairment and, for 2022, $1.1 billion of impairments of property and equipment and\noperating leases.\nOther Income (Expense), Net\nOther income (expense), net, is as follows (in millions):\nYear Ended December 31,\n2020 2021 2022\nMarketable equity securities valuation gains (losses) $ 525 $ 11,526 $ (13,870)\nEquity warrant valuation gains (losses) 1,527 1,315 (2,132)\nUpward adjustments relating to equity investments in private companies 342 1,866 76 \nForeign currency gains (losses) 35 (55) (340)\nOther, net (58) (19) (540)\nTotal other income (expense), net 2,371 14,633 (16,806)\n44"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d7d94-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 44, "chroma:document": "Table of Contents\nIncluded in other income (expense), net in 2021 and 2022 is a marketable equity securities valuation gain (loss) of $11.8 billion and $(12.7) billion from\nour equity investment in Rivian Automotive, Inc. (\u201cRivian\u201d). Our investment in Rivian\u2019s preferred stock was accounted for at cost, with adjustments for\nobservable changes in prices or impairments, prior to Rivian\u2019s initial public offering in November 2021, which resulted in the conversion of our preferred stock\nto Class A common stock. As of December 31, 2022, we held 158 million shares of Rivian\u2019s Class A common stock, representing an approximate 17%\nownership interest, and an approximate 16% voting interest. We determined that we have the ability to exercise significant influence over Rivian through our\nequity investment, our commercial arrangement for the purchase of electric vehicles, and one of our employees serving on Rivian\u2019s board of directors. We\nelected the fair value option to account for our equity investment in Rivian, which is included in \u201cMarketable securities\u201d on our consolidated balance sheets.\nRequired summarized financial information of Rivian as disclosed in its most recent SEC filings is as follows (in millions):\nYear Ended\nDecember 31, 2020Year Ended\nDecember 31, 2021Nine Months Ended\nSeptember 30, 2022\nRevenues $ \u2014 $ 55 $ 995 \nGross profit \u2014 (465) (2,123)\nLoss from operations (1,021) (4,220) (5,061)\nNet loss (1,018) (4,688) (5,029)\nDecember 31, 2021 September 30, 2022\nTotal current assets $ 18,559 $ 14,424 \nTotal assets 22,294 19,023 \nTotal current liabilities 1,313 2,109 \nTotal liabilities 2,780 3,686 \nIncome Taxes\nIncome tax expense includes U.S. (federal and state) and foreign income taxes. Certain foreign subsidiary earnings and losses are subject to current U.S.\ntaxation and the subsequent repatriation of those earnings is not subject to tax in the U.S. We intend to invest substantially all of our foreign subsidiary"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 44, "chroma:document": "earnings, as well as our capital in our foreign subsidiaries, indefinitely outside of the U.S. in those jurisdictions in which we would incur significant, additional\ncosts upon repatriation of such amounts.\nDeferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases, as\nwell as net operating loss and tax credit carryforwards, and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered.\nDeferred tax assets represent amounts available to reduce income taxes payable in future periods. Deferred tax assets are evaluated for future realization\nand reduced by a valuation allowance to the extent we believe they will not be realized. We consider many factors when assessing the likelihood of future\nrealization of our deferred tax assets, including recent cumulative loss experience and expectations of future earnings, capital gains and investment in such\njurisdiction, the carry-forward periods available to us for tax reporting purposes, and other relevant factors.\nWe utilize a two-step approach to recognizing and measuring uncertain income tax positions (tax contingencies). The first step is to evaluate the tax\nposition for recognition by determining if the weight of available evidence indicates it is more likely than not the position will be sustained on audit, including\nresolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being\nrealized upon ultimate settlement. We consider many factors when evaluating our tax positions and estimating our tax benefits, which may require periodic\nadjustments and which may not accurately forecast actual outcomes. We include interest and penalties related to our tax contingencies in income tax expense.\nFair Value of Financial Instruments\nFair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants\nat the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to\nmeasure fair value:\nLevel 1 \u2014 Valuations based on quoted prices for identical assets and liabilities in active markets.\n45"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 45, "chroma:document": "Table of Contents\nLevel 2 \u2014 Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and\nliabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are\nobservable or can be corroborated by observable market data.\nLevel 3 \u2014 Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by\nother market participants. These valuations require significant judgment.\nWe measure the fair value of money market funds and certain marketable equity securities based on quoted prices in active markets for identical assets or\nliabilities. Other marketable securities were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar\ninstruments and other significant inputs derived from or corroborated by observable market data. We did not hold significant amounts of marketable securities\ncategorized as Level 3 assets as of December 31, 2021 and 2022.\nWe hold equity warrants giving us the right to acquire stock of other companies. As of December 31, 2021 and 2022, these warrants had a fair value of\n$3.4 billion and $2.1 billion, and are recorded within \u201cOther assets\u201d on our consolidated balance sheets with gains and losses recognized in \u201cOther income\n(expense), net\u201d on our consolidated statements of operations. These warrants are primarily classified as Level 2 assets.\nCash and Cash Equivalents\nWe classify all highly liquid instruments with an original maturity of three months or less as cash equivalents.\nInventories\nInventories, 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\nand net realizable value. This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such\nas through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. The\ninventory valuation allowance, representing a write-down of inventory, was $2.6 billion and $2.8 billion as of December 31, 2021 and 2022.\nWe provide Fulfillment by Amazon services in connection with certain of our sellers\u2019 programs. Third-party sellers maintain ownership of their"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 45, "chroma:document": "inventory, regardless of whether fulfillment is provided by us or the third-party sellers, and therefore these products are not included in our inventories.\nWe also purchase electronic device components from a variety of suppliers and use several contract manufacturers to provide manufacturing services for\nour products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate supply, we enter into agreements\nwith contract manufacturers and suppliers for certain electronic device components. We have certain non-cancellable purchase commitments arising from these\nagreements. These commitments are based on forecasted customer demand. If we reduce these commitments, we may incur additional costs. We also have\nfirm, non-cancellable commitments for certain products offered in our Whole Foods Market stores.\nAccounts Receivable, Net and Other\nIncluded in \u201cAccounts receivable, net and other\u201d on our consolidated balance sheets are amounts primarily related to customers, vendors, and sellers. As\nof December 31, 2021 and 2022, customer receivables, net, were $20.2 billion and $26.6 billion, vendor receivables, net, were $5.3 billion and $6.9 billion, and\nseller receivables, net, were $1.0 billion and $1.3 billion. Seller receivables are amounts due from sellers related to our seller lending program, which provides\nfunding to sellers primarily to procure inventory.\nWe estimate losses on receivables based on expected losses, including our historical experience of actual losses. Receivables are considered impaired and\nwritten-off when it is probable that all contractual payments due will not be collected in accordance with the terms of the agreement. The allowance for\ndoubtful accounts was $1.1 billion, $1.1 billion, and $1.4 billion as of December 31, 2020, 2021, and 2022. Additions to the allowance were $1.4 billion, $1.0\nbillion, and $1.6 billion, and deductions to the allowance were $1.0 billion, $1.1 billion, and $1.3 billion in 2020, 2021, and 2022.\nSoftware Development Costs\nWe incur software development costs related to products to be sold, leased, or marketed to external users, internal-use software, and our websites."}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 45, "chroma:document": "Software development costs capitalized were not significant for the years presented. All other costs, including those related to design or maintenance, are\nexpensed as incurred.\n46"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 46, "chroma:document": "Table of Contents\nProperty and Equipment, Net\nProperty and equipment are stated at cost less accumulated depreciation and amortization. Incentives that we receive from property and equipment\nvendors are recorded as a reduction to our costs. Property includes buildings and land that we own, along with property we have acquired under build-to-suit\nlease arrangements when we have control over the building during the construction period and finance lease arrangements. Equipment includes assets such as\nservers and networking equipment, heavy equipment, and other fulfillment equipment. Depreciation and amortization is recorded on a straight-line basis over\nthe estimated useful lives of the assets (generally the lesser of 40 years or the remaining life of the underlying building, four years prior to January 1, 2022 and\nfive years subsequent to January 1, 2022 for our servers, five years prior to January 1, 2022 and six years subsequent to January 1, 2022 for our networking\nequipment, ten years for heavy equipment, and three to ten years for other fulfillment equipment). Depreciation and amortization expense is classified within\nthe corresponding operating expense categories on our consolidated statements of operations.\nLeases\nWe categorize leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow\nus to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in \u201cProperty and equipment, net.\u201d\nAll other leases are categorized as operating leases. Our leases generally have terms that range from one to ten years for equipment and one to twenty years for\nproperty.\nCertain lease contracts include obligations to pay for other services, such as operations and maintenance. For leases of property, we account for these\nother services as a component of the lease. For substantially all other leases, the services are accounted for separately and we allocate payments to the lease and\nother services components based on estimated stand-alone prices.\nLease liabilities are recognized at the present value of the fixed lease payments, reduced by landlord incentives using a discount rate based on similarly\nsecured borrowings available to us. Lease assets are recognized based on the initial present value of the fixed lease payments, reduced by landlord incentives,\nplus any direct costs from executing the leases or lease prepayments reclassified from \u201cOther assets\u201d upon lease commencement. Leasehold improvements are\ncapitalized at cost and amortized over the lesser of their expected useful life or the lease term."}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 46, "chroma:document": "When we have the option to extend the lease term, terminate the lease before the contractual expiration date, or purchase the leased asset, and it is\nreasonably certain that we will exercise the option, we consider the option in determining the classification and measurement of the lease. Our leases may\ninclude variable payments based on measures that include changes in price indices, market interest rates, or the level of sales at a physical store, which are\nexpensed as incurred.\nCosts associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. Finance lease\nassets are amortized within operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or, in the instance where title\ndoes not transfer at the end of the lease term, the lease term. The interest component of a finance lease is included in interest expense and recognized using the\neffective interest method over the lease term.\nWe establish assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such\nassets are amortized over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated retirement costs.\nFinancing Obligations\nWe record assets and liabilities for estimated construction costs under build-to-suit lease arrangements when we have control over the building during the\nconstruction period. If we continue to control the building after the construction period, the arrangement is classified as a financing obligation instead of a\nlease. The building is depreciated over the shorter of its useful life or the term of the obligation.\nIf we do not control the building after the construction period ends, the assets and liabilities for construction costs are derecognized, and we classify the\nlease as operating.\nGoodwill and Indefinite-Lived Intangible Assets\nWe evaluate goodwill and indefinite-lived intangible assets for impairment annually or more frequently when an event occurs or circumstances change\nthat indicate the carrying value may not be recoverable. We may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the\nfair value of a reporting unit or indefinite-lived intangible asset is less than its carrying value and if so, we perform a quantitative test. We compare the carrying\nvalue of each reporting unit and indefinite-lived intangible asset to its estimated fair value and if the fair value is determined to be less than the carrying value,"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 46, "chroma:document": "we recognize an impairment loss for the difference. We estimate the fair value of the reporting units using discounted cash\n47"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 47, "chroma:document": "Table of Contents\nflows. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on expected category\nexpansion, pricing, market segment share, and general economic conditions.\nWe completed the required annual impairment test of goodwill for all reporting units and indefinite-lived intangible assets as of April 1, 2022, resulting\nin no impairments. The fair value of our reporting units substantially exceeded their carrying value. There were no events that caused us to update our annual\nimpairment test. See \u201cNote 5 \u2014 Acquisitions, Goodwill, and Acquired Intangible Assets.\u201d\nOther Assets\nIncluded in \u201cOther assets\u201d on our consolidated balance sheets are amounts primarily related to video and music content, net of accumulated amortization;\nlong-term deferred tax assets; acquired intangible assets, net of accumulated amortization; equity warrant assets and certain equity investments; and satellite\nnetwork launch services deposits. We recognize certain transactions with governments when there is reasonable assurance that incentives included in the\nagreements, such as cash or certain tax credits, will be received and we are able to comply with any related conditions. These incentives are recorded as\nreductions to the cost of related assets or expenses.\nDigital Video and Music Content\nWe obtain video content, inclusive of episodic television and movies, and music content for customers through licensing agreements that have a wide\nrange of licensing provisions including both fixed and variable payment schedules. When the license fee for a specific video or music title is determinable or\nreasonably estimable and the content is available to us, we recognize an asset and a corresponding liability for the amounts owed. We reduce the liability as\npayments are made and we amortize the asset to \u201cCost of sales\u201d on an accelerated basis, based on estimated usage or viewing patterns, or on a straight-line\nbasis. If the licensing fee is not determinable or reasonably estimable, no asset or liability is recorded and licensing costs are expensed as incurred. We also\ndevelop original video content for which the production costs are capitalized and amortized to \u201cCost of sales\u201d predominantly on an accelerated basis that\nfollows the estimated viewing patterns associated with the content. The weighted average remaining life of our capitalized video content is 2.6 years. We\nreview usage and viewing patterns impacting the amortization of capitalized video content on an ongoing basis and reflect any changes prospectively. Changes"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 47, "chroma:document": "in historical and anticipated viewing patterns are lengthening the weighted average life of our capitalized video content. We anticipate the changes in viewing\npatterns will positively impact 2023 operating income by approximately $1.0 billion, generally ratably throughout the year.\nOur produced and licensed video content is primarily monetized together as a unit, referred to as a film group, in each major geography where we offer\nAmazon Prime memberships. These film groups are evaluated for impairment whenever an event occurs or circumstances change indicating the fair value is\nless than the carrying value. The total capitalized costs of video, which is primarily released content, and music as of December 31, 2021 and 2022 were $10.7\nbillion and $16.7 billion. Total video and music expense was $13.0 billion and $16.6 billion for the year ended December 31, 2021 and 2022. Total video and\nmusic expense includes licensing and production costs associated with content offered within Amazon Prime memberships, and costs associated with digital\nsubscriptions and sold or rented content.\nInvestments\nWe generally invest our excess cash in AAA-rated money market funds and investment grade short- to intermediate-term fixed income securities. Such\ninvestments are included in \u201cCash and cash equivalents\u201d or \u201cMarketable securities\u201d on the accompanying consolidated balance sheets.\nMarketable fixed income securities are classified as available-for-sale and reported at fair value with unrealized gains and losses included in\n\u201cAccumulated other comprehensive income (loss).\u201d Each reporting period, we evaluate whether declines in fair value below carrying value are due to expected\ncredit losses, as well as our ability and intent to hold the investment until a forecasted recovery occurs. Expected credit losses are recorded as an allowance\nthrough \u201cOther income (expense), net\u201d on our consolidated statements of operations.\nEquity investments in private companies for which we do not have the ability to exercise significant influence are accounted for at cost, with adjustments\nfor observable changes in prices or impairments, and are classified as \u201cOther assets\u201d on our consolidated balance sheets with adjustments recognized in \u201cOther\nincome (expense), net\u201d on our consolidated statements of operations. Each reporting period, we perform a qualitative assessment to evaluate whether the\ninvestment is impaired. Our assessment includes a review of recent operating results and trends, recent sales/acquisitions of the investee securities, and other"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 47, "chroma:document": "publicly available data. If the investment is impaired, we write it down to its estimated fair value. As of December 31, 2021 and 2022, these investments had a\ncarrying value of $603 million and $715 million.\nEquity investments are accounted for using the equity method of accounting, or at fair value if we elect the fair value option, if the investment gives us\nthe ability to exercise significant influence, but not control, over an investee. Equity-method\n48"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 48, "chroma:document": "Table of Contents\ninvestments are included within \u201cOther assets\u201d on our consolidated balance sheets. Our share of the earnings or losses as reported by equity-method investees,\namortization of basis differences, related gains or losses, and impairments, if any, are recognized in \u201cEquity-method investment activity, net of tax\u201d on our\nconsolidated statements of operations. Each reporting period, we evaluate whether declines in fair value below carrying value are other-than-temporary and if\nso, we write down the investment to its estimated fair value.\nEquity investments that have readily determinable fair values, including investments for which we have elected the fair value option, are included in\n\u201cMarketable securities\u201d on our consolidated balance sheets and measured at fair value with changes recognized in \u201cOther income (expense), net\u201d on our\nconsolidated statements of operations.\nLong-Lived Assets\nLong-lived assets, other than goodwill and indefinite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances\nindicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant\ndecline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse\nchange that would indicate that the carrying amount of an asset or group of assets may not be recoverable.\nFor long-lived assets used in operations, including lease assets, impairment losses are only recorded if the asset\u2019s carrying amount is not recoverable\nthrough its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and\nestimated fair value. Long-lived assets are considered held for sale when certain criteria are met, including when management has committed to a plan to sell\nthe asset, the asset is available for sale in its immediate condition, and the sale is probable within one year of the reporting date. Assets held for sale are\nreported at the lower of cost or fair value less costs to sell. Assets held for sale were not significant as of December 31, 2021 and 2022.\nAccrued Expenses and Other\nIncluded in \u201cAccrued expenses and other\u201d on our consolidated balance sheets are liabilities primarily related to leases and asset retirement obligations,\ntax-related liabilities, current debt, payroll and related expenses, unredeemed gift cards, self-insurance liabilities, customer liabilities, marketing liabilities,"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 48, "chroma:document": "acquired digital media content, and other operating expenses.\nAs of December 31, 2021 and 2022, our liabilities for payroll related expenses were $7.4 billion and $7.7 billion and our liabilities for unredeemed gift\ncards were $5.2 billion and $5.4 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\nbe redeemed is recognized based on customer usage patterns.\nSelf-Insurance Liabilities\nAlthough we maintain certain high-deductible, third-party insurance coverage for catastrophic losses, we effectively self-insure for exposure primarily\nrelated to workers\u2019 compensation, employee health care benefits, general and product liability, and automobile liability, including liability resulting from third-\nparty transportation service providers. We estimate self-insurance liabilities by considering historical claims experience, frequency and costs of claims,\nprojected claims development, inflation, and other actuarial assumptions. Changes in the number or costs of claims, healthcare costs, judgment and settlement\namounts, associated legal expenses, and other factors could cause actual results to differ materially from these estimates. As of December 31, 2021 and 2022,\nour total self-insurance liabilities were $2.2 billion and $4.0 billion and are included in \u201cAccrued expenses and other\u201d on our consolidated balance sheets. In\nthe fourth quarter of 2022, we increased our reserves for general, product, and automobile liabilities by $1.3 billion primarily driven by changes in our\nestimates about the costs of asserted and unasserted claims, which was primarily recorded in \u201cCost of sales\u201d on our consolidated statements of operations and\nimpacted our North America segment.\nUnearned Revenue\nUnearned revenue is recorded when payments are received or due in advance of performing our service obligations and is recognized over the service\nperiod. Unearned revenue primarily relates to prepayments of AWS services and Amazon Prime memberships. Our total unearned revenue as of December 31,\n2021 was $14.0 billion, of which $11.3 billion was recognized as revenue during the year ended December 31, 2022 and our total unearned revenue as of\nDecember 31, 2022 was $16.1 billion. Included in \u201cOther long-term liabilities\u201d on our consolidated balance sheets was $2.2 billion and $2.9 billion of unearned"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 48, "chroma:document": "revenue as of December 31, 2021 and 2022.\nAdditionally, we have performance obligations, primarily related to AWS, associated with commitments in customer contracts for future services that\nhave not yet been recognized in our financial statements. For contracts with original terms that exceed one year, those commitments not yet recognized were\n$110.4 billion as of December 31, 2022. The weighted average remaining life of our long-term contracts is 3.7 years. However, the amount and timing of\nrevenue recognition is largely driven by customer usage, which can extend beyond the original contractual term.\n49"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 49, "chroma:document": "Table of Contents\nOther Long-Term Liabilities\nIncluded in \u201cOther long-term liabilities\u201d on our consolidated balance sheets are liabilities primarily related to financing obligations, asset retirement\nobligations, unearned revenue, tax contingencies, digital video and music content, and deferred tax liabilities.\nForeign Currency\nWe have internationally-focused stores for which the net sales generated, as well as most of the related expenses directly incurred from those operations,\nare denominated in local functional currencies. The functional currency of our subsidiaries that either operate or support these stores is generally the same as\nthe local currency. Assets and liabilities of these subsidiaries are translated into U.S. Dollars at period-end foreign exchange rates, and revenues and expenses\nare translated at average rates prevailing throughout the period. Translation adjustments are included in \u201cAccumulated other comprehensive income (loss),\u201d a\nseparate component of stockholders\u2019 equity. Transaction gains and losses including intercompany transactions denominated in a currency other than the\nfunctional currency of the entity involved are included in \u201cOther income (expense), net\u201d on our consolidated statements of operations. In connection with the\nsettlement and remeasurement of intercompany balances, we recorded gains (losses) of $(118) million, $19 million, and $386 million in 2020, 2021, and 2022.\nNote 2 \u2014 FINANCIAL INSTRUMENTS\nCash, Cash Equivalents, Restricted Cash, and Marketable Securities\nAs of December 31, 2021 and 2022, our cash, cash equivalents, restricted cash, and marketable securities primarily consisted of cash, AAA-rated money\nmarket funds, U.S. and foreign government and agency securities, other investment grade securities, and marketable equity securities. Cash equivalents and\nmarketable securities are recorded at fair value. The following table summarizes, by major security type, our cash, cash equivalents, restricted cash, and\nmarketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in millions):\n December 31, 2021\n  Cost or\nAmortized\nCostGross\nUnrealized\nGainsGross\nUnrealized\nLossesTotal\nEstimated\nFair Value\nCash $ 10,942 $ \u2014 $ \u2014 $ 10,942 \nLevel 1 securities:\nMoney market funds 20,312 \u2014 \u2014 20,312 \nEquity securities (1) 1,646"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 49, "chroma:document": "Equity securities (1) 1,646 \nLevel 2 securities:\nForeign government and agency securities 181 \u2014 \u2014 181 \nU.S. government and agency securities 4,316 9 (25) 4,300 \nCorporate debt securities 35,810 75 (121) 35,764 \nAsset-backed securities 6,763 7 (32) 6,738 \nOther fixed income securities 688 2 (4) 686 \nEquity securities (1)(3) 15,740 \n$ 79,012 $ 93 $ (182)$ 96,309 \nLess: Restricted cash, cash equivalents, and marketable securities (2) (260)\nTotal cash, cash equivalents, and marketable securities $ 96,049 \n50"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 50, "chroma:document": "Table of Contents\n December 31, 2022\n  Cost or\nAmortized\nCostGross\nUnrealized\nGainsGross\nUnrealized\nLossesTotal\nEstimated\nFair Value\nCash $ 10,666 $ \u2014 $ \u2014 $ 10,666 \nLevel 1 securities:\nMoney market funds 27,899 \u2014 \u2014 27,899 \nEquity securities (1)(3) 3,709 \nLevel 2 securities:\nForeign government and agency securities 537 \u2014 (2) 535 \nU.S. government and agency securities 2,301 \u2014 (155) 2,146 \nCorporate debt securities 23,111 \u2014 (484) 22,627 \nAsset-backed securities 2,721 \u2014 (149) 2,572 \nOther fixed income securities 249 \u2014 (12) 237 \n$ 67,484 $ \u2014 $ (802)$ 70,391 \nLess: Restricted cash, cash equivalents, and marketable securities (2) (365)\nTotal cash, cash equivalents, and marketable securities $ 70,026 \n___________________\n(1)The related unrealized gain (loss) recorded in \u201cOther income (expense), net\u201d was $448 million, $11.6 billion, and $(13.6) billion for the years ended\nDecember 31, 2020, 2021, and 2022.\n(2)We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable fixed income securities primarily as collateral for\nreal estate, amounts due to third-party sellers in certain jurisdictions, debt, and standby and trade letters of credit. We classify cash, cash equivalents, and\nmarketable fixed income securities with use restrictions of less than twelve months as \u201cAccounts receivable, net and other\u201d and of twelve months or longer\nas non-current \u201cOther assets\u201d on our consolidated balance sheets. See \u201cNote 7 \u2014 Commitments and Contingencies.\u201d\n(3)Our equity investment in Rivian had a fair value of $15.6 billion and $2.9 billion as of December 31, 2021 and December 31, 2022, respectively. The\ninvestment was subject to regulatory sales restrictions resulting in a discount for lack of marketability of approximately $800 million as of December 31,"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 50, "chroma:document": "2021, which expired in Q1 2022.\nThe following table summarizes gross gains and gross losses realized on sales of marketable fixed income securities (in millions):\nYear Ended December 31,\n2020 2021 2022\nRealized gains $ 92 $ 85 $ 43 \nRealized losses 56 38 341 \nThe following table summarizes the remaining contractual maturities of our cash equivalents and marketable fixed income securities as of December 31,\n2022 (in millions):\nAmortized\nCostEstimated\nFair Value\nDue within one year $ 46,854 $ 46,782 \nDue after one year through five years 7,622 7,047 \nDue after five years through ten years 602 565 \nDue after ten years 1,740 1,622 \nTotal $ 56,818 $ 56,016 \nActual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions.\n51"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 51, "chroma:document": "Table of Contents\nConsolidated Statements of Cash Flows Reconciliation\nThe following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets\nto the total of the same such amounts shown in the consolidated statements of cash flows (in millions):\nDecember 31, 2021 December 31, 2022\nCash and cash equivalents $ 36,220 $ 53,888 \nRestricted cash included in accounts receivable, net and other 242 358 \nRestricted cash included in other assets 15 7 \nTotal cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 36,477 $ 54,253 \nNote 3 \u2014 PROPERTY AND EQUIPMENT\nProperty and equipment, at cost, consisted of the following (in millions): \n December 31,\n 2021 2022\nGross property and equipment (1):\nLand and buildings $ 81,104 $ 91,650 \nEquipment 128,683 157,458 \nOther assets 4,118 4,602 \nConstruction in progress 24,895 30,020 \nGross property and equipment 238,800 283,730 \nTotal accumulated depreciation and amortization (1) 78,519 97,015 \nTotal property and equipment, net $ 160,281 $ 186,715 \n__________________\n(1)Includes the original cost and accumulated depreciation of fully-depreciated assets.\nDepreciation and amortization expense on property and equipment was $16.2 billion, $22.9 billion, and $24.9 billion which includes amortization of\nproperty and equipment acquired under finance leases of $8.5 billion, $9.9 billion, and $6.1 billion for 2020, 2021, and 2022.\n52"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 52, "chroma:document": "Table of Contents\nNote 4 \u2014 LEASES\nWe have entered into non-cancellable operating and finance leases for fulfillment, delivery, office, data center, physical store, and sortation facilities as\nwell as server and networking equipment, vehicles, and aircraft. Gross assets acquired under finance leases, inclusive of those where title transfers at the end of\nthe lease, are recorded in \u201cProperty and equipment, net\u201d and were $72.2 billion and $68.0 billion as of December 31, 2021 and 2022. Accumulated\namortization associated with finance leases was $43.4 billion and $45.2 billion as of December 31, 2021 and 2022.\nLease cost recognized in our consolidated statements of operations is summarized as follows (in millions):\n Year Ended December 31,\n2020 2021 2022\nOperating lease cost $ 5,019 $ 7,199 $ 8,847 \nFinance lease cost:\nAmortization of lease assets 8,452 9,857 6,097 \nInterest on lease liabilities 617 473 361 \nFinance lease cost 9,069 10,330 6,458 \nVariable lease cost 1,238 1,556 1,852 \nTotal lease cost $ 15,326 $ 19,085 $ 17,157 \nOther information about lease amounts recognized in our consolidated financial statements is as follows:\n December 31, 2021 December 31, 2022\n \nWeighted-average remaining lease term \u2013 operating leases 11.3 years 11.6 years\nWeighted-average remaining lease term \u2013 finance leases 8.1 years 10.3 years\nWeighted-average discount rate \u2013 operating leases 2.2 % 2.8 %\nWeighted-average discount rate \u2013 finance leases 2.0 % 2.3 %\nOur lease liabilities were as follows (in millions):\nDecember 31, 2021\n Operating Leases Finance Leases Total\nGross lease liabilities $ 66,269 $ 25,866 $ 92,135 \nLess: imputed interest (7,939) (2,113) (10,052)\nPresent value of lease liabilities 58,330 23,753 82,083"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 52, "chroma:document": "Less: current portion of lease liabilities (6,349) (8,083) (14,432)\nTotal long-term lease liabilities $ 51,981 $ 15,670 $ 67,651 \nDecember 31, 2022\n Operating Leases Finance Leases Total\nGross lease liabilities $ 81,273 $ 18,019 $ 99,292 \nLess: imputed interest (12,233) (2,236) (14,469)\nPresent value of lease liabilities 69,040 15,783 84,823 \nLess: current portion of lease liabilities (7,458) (4,397) (11,855)\nTotal long-term lease liabilities $ 61,582 $ 11,386 $ 72,968 \n53"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 53, "chroma:document": "Table of Contents\nNote 5 \u2014 ACQUISITIONS, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS\n2020 Acquisition Activity\nDuring 2020, we acquired certain companies for an aggregate purchase price of $1.2 billion, net of cash acquired, of which $1.1 billion was capitalized to\nin-process research and development intangible assets (\u201cIPR&D\u201d).\n2021 Acquisition Activity\nDuring 2021, we acquired certain companies for an aggregate purchase price of $496 million, net of cash acquired.\n2022 Acquisition Activity\nOn March 17, 2022, we acquired MGM Holdings Inc., for cash consideration of approximately $6.1 billion, net of cash acquired, to provide more digital\nmedia content options for customers. We also assumed $2.5 billion of debt, which we repaid immediately after closing. The acquired assets primarily consist of\n$3.4 billion of video content and $4.9 billion of goodwill.\nDuring 2022, we also acquired certain other companies for an aggregate purchase price of $141 million, net of cash acquired.\nPro forma results of operations have not been presented because the effects of the 2022 acquisitions, individually and in the aggregate, were not material\nto our consolidated results of operations. Acquisition-related costs were expensed as incurred and were not significant.\nGoodwill\nThe goodwill of the acquired companies is primarily related to expected improvements in technology performance and functionality, as well as sales\ngrowth from future product and service offerings and new customers, together with certain intangible assets that do not qualify for separate recognition. The\ngoodwill of the acquired companies is generally not deductible for tax purposes. The following summarizes our goodwill activity in 2021 and 2022 by segment\n(in millions):\nNorth\nAmerica International AWS Consolidated\nGoodwill - January 1, 2021 $ 12,527 $ 1,288 $ 1,202 $ 15,017 \nNew acquisitions 230 60 76 366 \nOther adjustments (1) 1 (21) 8 (12)\nGoodwill - December 31, 2021 12,758 1,327 1,286 15,371 \nNew acquisitions 3,943 1,054 \u2014 4,997 \nOther adjustments (1) (80) 30 (30) (80)"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 53, "chroma:document": "Goodwill - December 31, 2022 $ 16,621 $ 2,411 $ 1,256 $ 20,288 \n ___________________\n(1)Primarily includes changes in foreign exchange rates.\n54"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 54, "chroma:document": "Table of Contents\nIntangible Assets\nAcquired identifiable intangible assets are valued primarily by using discounted cash flows. These assets are included within \u201cOther assets\u201d on our\nconsolidated balance sheets and consist of the following (in millions):\n \n December 31,\n 2021 2022\n  Acquired\nIntangibles,\nGross (1)Accumulated\nAmortization (1)Acquired\nIntangibles,\nNetAcquired\nIntangibles,\nGross (1)Accumulated\nAmortization (1)Acquired\nIntangibles,\nNetWeighted\nAverage Life\nRemaining\nFinite-lived intangible assets (2):\nMarketing-related $ 2,286 $ (548)$ 1,738 $ 2,407 $ (601)$ 1,806 18.6\nContract-based 2,327 (565) 1,762 3,661 (813) 2,848 12.8\nTechnology- and content-\nbased 976 (610) 366 883 (643) 240 3.2\nCustomer-related 197 (103) 94 184 (128) 56 2.2\nTotal finite-lived\nintangible assets $ 5,786 $ (1,826)$ 3,960 $ 7,135 $ (2,185)$ 4,950 14.4\nIPR&D and other (3) $ 1,147  $ 1,147 $ 1,147  $ 1,147 \nTotal acquired intangibles$ 6,933 $ (1,826)$ 5,107 $ 8,282 $ (2,185)$ 6,097 \n ___________________\n(1)Excludes the original cost and accumulated amortization of fully-amortized intangibles.\n(2)Finite-lived intangible assets, excluding acquired video content, have estimated useful lives of between one and twenty-five years, and are being amortized\nto operating expenses on a straight-line basis.\n(3)Intangible assets acquired in a business combination that are in-process and used in research and development activities are considered indefinite-lived\nuntil the completion or abandonment of the research and development efforts. Once the research and development efforts are completed, we determine the\nuseful life and begin amortizing the assets."}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 54, "chroma:document": "useful life and begin amortizing the assets.\nAmortization expense for acquired finite-lived intangibles was $509 million, $512 million, and $604 million in 2020, 2021, and 2022. Expected future\namortization expense of acquired finite-lived intangible assets as of December 31, 2022 is as follows (in millions):\n \nYear Ended December 31,\n2023 $ 530 \n2024 456 \n2025 371 \n2026 324 \n2027 314 \nThereafter 2,955 \n$ 4,950 \n55"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 55, "chroma:document": "Table of Contents\nNote 6 \u2014 DEBT\nAs of December 31, 2022, we had $69.5 billion of unsecured senior notes outstanding (the \u201cNotes\u201d), including $12.8 billion issued in April 2022 and\n$8.3 billion issued in December 2022 for general corporate purposes, and $1.0 billion of borrowings under our secured revolving credit facility. Our total long-\nterm debt obligations are as follows (in millions):\nMaturities (1) Stated Interest Rates Effective Interest Rates December 31, 2021 December 31, 2022\n2012 Notes issuance of $3.0 billion 2022 2.50% 2.66% 1,250 \u2014 \n2014 Notes issuance of $6.0 billion 2024 - 2044 3.80% - 4.95% 3.90% - 5.12% 4,000 4,000 \n2017 Notes issuance of $17.0 billion 2023 - 2057 2.40% - 5.20% 2.56% - 4.33% 16,000 16,000 \n2020 Notes issuance of $10.0 billion 2023 - 2060 0.40% - 2.70% 0.56% - 2.77% 10,000 10,000 \n2021 Notes issuance of $18.5 billion 2023 - 2061 0.25% - 3.25% 0.35% - 3.31% 18,500 18,500 \nApril 2022 Notes issuance of $12.8 billion 2024 - 2062 2.73% - 4.10% 2.83% - 4.15% \u2014 12,750 \nDecember 2022 Notes issuance of $8.3 billion 2024 - 2032 4.55% - 4.70% 4.61% - 4.83% \u2014 8,250 \nCredit Facility 803 1,042 \nTotal face value of long-term debt 50,553 70,542 \nUnamortized discount and issuance costs, net (318) (393)"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 55, "chroma:document": "Less: current portion of long-term debt (1,491) (2,999)\nLong-term debt $ 48,744 $ 67,150 \n___________________\n(1)The weighted-average remaining lives of the 2014, 2017, 2020, 2021, April 2022, and December 2022 Notes were 12.6, 14.2, 16.7, 13.3, 13.3, and 5.9\nyears as of December 31, 2022. The combined weighted-average remaining life of the Notes was 13.1 years as of December 31, 2022.\nInterest on the Notes is payable semi-annually in arrears. We may redeem the Notes at any time in whole, or from time to time, in part at specified\nredemption prices. We are not subject to any financial covenants under the Notes. The estimated fair value of the Notes was approximately $53.3 billion and\n$61.4 billion as of December 31, 2021 and 2022, which is based on quoted prices for our debt as of those dates.\nWe have a $1.5 billion secured revolving credit facility with a lender that is secured by certain seller receivables, which we increased from $1.0 billion to\n$1.5 billion in August 2022 and we may from time to time increase in the future subject to lender approval (the \u201cCredit Facility\u201d). The Credit Facility is\navailable until August 2025, bears interest based on the daily Secured Overnight Financing Rate plus 1.25%, and has a commitment fee of up to 0.45% on the\nundrawn portion. There were $803 million and $1.0 billion of borrowings outstanding under the Credit Facility as of December 31, 2021 and 2022, which had\nan interest rate of 1.5% and 5.6%, respectively. As of December 31, 2021 and 2022, we have pledged $918 million and $1.2 billion of our cash and seller\nreceivables as collateral for debt related to our Credit Facility. The estimated fair value of the Credit Facility, which is based on Level 2 inputs, approximated\nits carrying value as of December 31, 2021 and 2022."}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 55, "chroma:document": "As of December 31, 2022, future principal payments for our total long-term debt were as follows (in millions):\nYear Ended December 31,\n2023 $ 3,000 \n2024 8,500 \n2025 5,249 \n2026 3,543 \n2027 8,750 \nThereafter 41,500 \n$ 70,542 \nWe have U.S. Dollar and Euro commercial paper programs (the \u201cCommercial Paper Programs\u201d) under which we may from time to time issue unsecured\ncommercial paper up to a total of $20.0 billion (including up to \u20ac3.0 billion) at the date of issue, with individual maturities that may vary but will not exceed\n397 days from the date of issue. In March 2022, we increased the size of the Commercial Paper Programs from $10.0 billion to $20.0 billion. There were $725\nmillion and $6.8 billion of borrowings outstanding under the Commercial Paper Programs as of December 31, 2021 and 2022, which were\n56"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 56, "chroma:document": "Table of Contents\nincluded in \u201cAccrued expenses and other\u201d on our consolidated balance sheets and had a weighted-average effective interest rate, including issuance costs, of\n0.08% and 4.47%, respectively. We use the net proceeds from the issuance of commercial paper for general corporate purposes.\nWe have a $10.0 billion unsecured revolving credit facility with a syndicate of lenders (the \u201cCredit Agreement\u201d), which was amended and restated in\nMarch 2022 to increase the borrowing capacity from $7.0 billion to $10.0 billion and to extend the term to March 2025. It may be extended for up to three\nadditional one-year terms if approved by the lenders. The interest rate applicable to outstanding balances under the Credit Agreement is the applicable\nbenchmark rate specified in the Credit Agreement plus 0.45%, with a commitment fee of 0.03% on the undrawn portion of the credit facility. There were no\nborrowings outstanding under the Credit Agreement as of December 31, 2021 and 2022.\nIn November 2022, we entered into a $10.0 billion unsecured 364-day revolving credit facility with a syndicate of lenders (the \u201cShort-Term Credit\nAgreement\u201d), which matures in November 2023 and may be extended for one additional period of 364 days if approved by the lenders. The interest rate\napplicable to outstanding balances under the Short-Term Credit Agreement is the Secured Overnight Financing Rate specified in the Short-Term Credit\nAgreement plus 0.45%, with a commitment fee of 0.05% on the undrawn portion. There were no borrowings outstanding under the Short-Term Credit\nAgreement as of December 31, 2022.\nWe also utilize other short-term credit facilities for working capital purposes. There were $318 million and $1.2 billion of borrowings outstanding under\nthese facilities as of December 31, 2021 and 2022, which were included in \u201cAccrued expenses and other\u201d on our consolidated balance sheets. In addition, we\nhad $6.9 billion of unused letters of credit as of December 31, 2022.\nIn January 2023, we entered into an $8.0 billion unsecured 364-day term loan with a syndicate of lenders (the \u201cTerm Loan\u201d), which matures in January"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 56, "chroma:document": "2024 and bears interest at the Secured Overnight Financing Rate specified in the Term Loan plus 0.75%. If we exercise our option to extend the Term Loan\u2019s\nmaturity to January 2025, the interest rate spread will increase from 0.75% to 1.05%. As of the date of this filing, the entire Term Loan is outstanding.\n57"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 57, "chroma:document": "Table of Contents\nNote 7 \u2014 COMMITMENTS AND CONTINGENCIES\nCommitments\nThe following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally\ncancellable, as of December 31, 2022 (in millions):\n Year Ended December 31,   \n 2023 2024 2025 2026 2027 Thereafter Total\nLong-term debt principal and interest $ 5,165 $10,618 $ 7,146 $ 5,253 $10,399 $ 63,815 $102,396 \nOperating lease liabilities 9,574 8,658 8,024 7,393 6,675 40,949 81,273 \nFinance lease liabilities, including interest 4,575 2,248 1,422 1,279 1,088 7,407 18,019 \nFinancing obligations, including interest (1) 465 464 456 464 471 6,712 9,032 \nLeases not yet commenced 1,252 2,043 2,185 2,160 2,152 17,237 27,029 \nUnconditional purchase obligations (2) 8,156 7,217 5,366 4,525 3,419 6,093 34,776 \nOther commitments (3)(4) 3,173 1,608 1,027 982 622 8,652 16,064 \nTotal commitments $32,360 $32,856 $25,626 $22,056 $24,826 $150,865 $288,589 \n___________________\n(1)Includes non-cancellable financing obligations for fulfillment, sortation, and data center facilities. Excluding interest, current financing obligations of $196\nmillion and $266 million are recorded within \u201cAccrued expenses and other\u201d and $6.2 billion and $6.7 billion are recorded within \u201cOther long-term\nliabilities\u201d as of December 31, 2021 and 2022. The weighted-average remaining term of the financing obligations was 18.8 years and 17.9 years and the\nweighted-average imputed interest rate was 3.2% and 3.1% as of December 31, 2021 and 2022."}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 57, "chroma:document": "(2)Includes unconditional purchase obligations related to long-term agreements to acquire and license digital media content that are not reflected on the\nconsolidated balance sheets and certain products offered in our Whole Foods Market stores. For those digital media content agreements with variable\nterms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with\nrenewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified.\n(3)Includes asset retirement obligations, liabilities associated with digital media content agreements with initial terms greater than one year, and the estimated\ntiming and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that are under construction.\n(4)Excludes approximately $4.0 billion of accrued tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of\npayment, if any.\nIn July 2022, we entered into an agreement to acquire 1Life Healthcare, Inc. (One Medical) for approximately $3.9 billion, including its debt, subject to\ncustomary closing conditions. In August 2022, we entered into an agreement to acquire iRobot Corporation for approximately $1.7 billion, including its debt,\nsubject to customary closing conditions. We expect to fund these acquisitions with cash on hand.\nSuppliers\nDuring 2022, no vendor accounted for 10% or more of our purchases. We generally do not have long-term contracts or arrangements with our vendors to\nguarantee the availability of merchandise, particular payment terms, or the extension of credit limits.\nOther Contingencies\nWe are disputing claims and denials of refunds or credits related to various non-income taxes (such as sales, value added, consumption, service, and\nsimilar taxes), including in jurisdictions in which we already collect and remit these taxes. These non-income tax controversies typically relate to (i) the\ntaxability of products and services, including cross-border intercompany transactions, (ii) collection and withholding on transactions with third parties, and (iii)\nthe adequacy of compliance with reporting obligations, including evolving documentation requirements. Due to the inherent complexity and uncertainty of\nthese matters and the judicial and regulatory processes in certain jurisdictions, the final outcome of any such controversies may be materially different from our\nexpectations.\n58"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 58, "chroma:document": "Table of Contents\nLegal Proceedings\nThe Company is involved from time to time in claims, proceedings, and litigation, including the following:\nIn November 2015, Eolas Technologies, Inc. filed a complaint against Amazon.com, Inc. in the United States District Court for the Eastern District of\nTexas. The complaint alleges, among other things, that the use of \u201cinteractive features\u201d on www.amazon.com, including \u201csearch suggestions and search\nresults,\u201d infringes U.S. Patent No. 9,195,507, entitled \u201cDistributed Hypermedia Method and System for Automatically Invoking External Application Providing\nInteraction and Display of Embedded Objects Within a Hypermedia Document.\u201d The complaint sought a judgment of infringement together with costs and\nattorneys\u2019 fees. In February 2016, Eolas filed an amended complaint seeking, among other things, an unspecified amount of damages. In February 2017, Eolas\nalleged in its damages report that in the event of a finding of liability Amazon could be subject to $130 to $250 million in damages. In April 2017, the case was\ntransferred to the United States District Court for the Northern District of California. In May 2022, the district court granted summary judgment holding that\nthe patent is invalid. In June 2022, Eolas filed a notice of appeal. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this\nmatter.\nIn May 2018, Rensselaer Polytechnic Institute and CF Dynamic Advances LLC filed a complaint against Amazon.com, Inc. in the United States District\nCourt for the Northern District of New York. The complaint alleges, among other things, that \u201cAlexa Voice Software and Alexa enabled devices\u201d infringe U.S.\nPatent No. 7,177,798, entitled \u201cNatural Language Interface Using Constrained Intermediate Dictionary of Results.\u201d The complaint seeks an injunction, an\nunspecified amount of damages, enhanced damages, an ongoing royalty, interest, attorneys\u2019 fees, and costs. We dispute the allegations of wrongdoing and\nintend to defend ourselves vigorously in this matter.\nIn December 2018, Kove IO, Inc. filed a complaint against Amazon Web Services, Inc. in the United States District Court for the Northern District of\nIllinois. The complaint alleges, among other things, that Amazon S3 and DynamoDB infringe U.S. Patent Nos. 7,814,170 and 7,103,640, both entitled"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 58, "chroma:document": "\u201cNetwork Distributed Tracking Wire Transfer Protocol\u201d; and 7,233,978, entitled \u201cMethod and Apparatus for Managing Location Information in a Network\nSeparate from the Data to Which the Location Information Pertains.\u201d The complaint seeks an unspecified amount of damages, enhanced damages, attorneys\u2019\nfees, costs, interest, and injunctive relief. In March 2022, the case was stayed pending resolution of review petitions we filed with the United States Patent and\nTrademark Office. In November 2022, the stay was lifted. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter.\nBeginning in March 2020, with Frame-Wilson v. Amazon.com, Inc. filed in the United States District Court for the Western District of Washington,\nprivate litigants have filed a number of cases in the U.S. and Canada alleging, among other things, price fixing arrangements between Amazon.com, Inc. and\nvendors and third-party sellers in Amazon\u2019s stores, monopolization and attempted monopolization, and consumer protection and unjust enrichment claims.\nAttorneys General for the District of Columbia and California brought similar suits in May 2021 and September 2022 in the Superior Court of the District of\nColumbia and the California Superior Court for the County of San Francisco, respectively. Some of the private cases include allegations of several distinct\npurported classes, including consumers who purchased a product through Amazon\u2019s stores and consumers who purchased a product offered by Amazon\nthrough another e-commerce retailer. The complaints seek billions of dollars of alleged actual damages, treble damages, punitive damages, injunctive relief,\ncivil penalties, attorneys\u2019 fees, and costs. In March 2022 and January 2023, Amazon\u2019s motions to dismiss were granted in part and denied in part in Frame-\nWilson and De Coster v. Amazon.com, Inc. (WD Wash), respectively; both courts dismissed claims alleging that Amazon\u2019s pricing policies are inherently\nillegal and denied dismissal of claims alleging that Amazon\u2019s pricing policies are an unlawful restraint of trade. In March 2022, the DC Superior Court\ndismissed the DC Attorney General\u2019s lawsuit in its entirety; the dismissal is under appeal as of January 2023. We dispute the allegations of wrongdoing and\nintend to defend ourselves vigorously in these matters."}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 58, "chroma:document": "intend to defend ourselves vigorously in these matters.\nIn October 2020, BroadbandiTV, Inc. filed a complaint against Amazon.com, Inc., Amazon.com Services LLC, and Amazon Web Services, Inc. in the\nUnited States District Court for the Western District of Texas. The complaint alleges, among other things, that certain Amazon Prime Video features and\nservices infringe U.S. Patent Nos. 9,648,388, 10,546,750, and 10,536,751, each entitled \u201cVideo-On-Demand Content Delivery System for Providing Video-On-\nDemand Services to TV Services Subscribers\u201d; 10,028,026, entitled \u201cSystem for Addressing On-Demand TV Program Content on TV Services Platform of a\nDigital TV Services Provider\u201d; and 9,973,825, entitled \u201cDynamic Adjustment of Electronic Program Guide Displays Based on Viewer Preferences for\nMinimizing Navigation in VOD Program Selection.\u201d The complaint seeks an unspecified amount of damages. In April 2022, BroadbandiTV alleged in its\ndamages report that, in the event of a finding of liability, Amazon could be subject to $166 to $986 million in damages. In September 2022, the court granted\nsummary judgment, holding that the patents are invalid. In October 2022, BroadbandiTV filed a notice of appeal. We dispute the allegations of wrongdoing and\nwill continue to defend ourselves vigorously in this matter.\n59"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 59, "chroma:document": "Table of Contents\nIn November 2020, the European Commission issued a Statement of Objections alleging that Amazon uses data relating to our marketplace sellers in a\nmanner that infringes EU competition rules. The Statement of Objections sought to impose unspecified fines and remedial actions. In December 2022, the\nEuropean Commission adopted formal commitments without fines, fully resolving the investigation.\nIn July 2021, the Luxembourg National Commission for Data Protection (the \u201cCNPD\u201d) issued a decision against Amazon Europe Core S.\u00e0 r.l. claiming\nthat Amazon\u2019s processing of personal data did not comply with the EU General Data Protection Regulation. The decision imposes a fine of \u20ac746 million and\ncorresponding practice revisions. We believe the CNPD\u2019s decision to be without merit and intend to defend ourselves vigorously in this matter.\nIn November 2021, Jawbone Innovations, LLC filed a complaint against Amazon.com, Inc. and Amazon.com Services, Inc. in the United States District\nCourt for the Eastern District of Texas. The complaint alleges, among other things, that Amazon Echo smart speakers and displays, Fire TV Cube, and Echo\nBuds infringe U.S. Patent Nos. 7,246,058, entitled \u201cDetecting Voiced and Unvoiced Speech Using Both Acoustic and Nonacoustic Sensors\u201d; 8,019,091,\nentitled \u201cVoice Activity Detector (VAD)-Based Multiple-Microphone Acoustic Noise Suppression\u201d; 8,280,072, entitled \u201cMicrophone Array with Rear\nVenting\u201d; 8,321,213 and 8,326,611, both entitled \u201cAcoustic Voice Activity Detection (AVAD) for Electronic Systems\u201d; 8,467,543, entitled \u201cMicrophone and\nVoice Activity Detection (VAD) Configurations for Use with Communications Systems\u201d; 8,503,691, entitled \u201cVirtual Microphone Arrays Using Dual\nOmnidirectional Microphone Array (DOMA)\u201d; 10,779,080, entitled \u201cDual Omnidirectional Microphone Array (DOMA)\u201d; and 11,122,357, entitled \u201cForming\nVirtual Microphone Arrays Using Dual Omnidirectional Microphone Array (DOMA).\u201d The complaint seeks an unspecified amount of damages, enhanced\ndamages, attorneys\u2019 fees, costs, interest, and injunctive relief. In November 2022, the case was transferred to the United States District Court for the Northern"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 59, "chroma:document": "District of California. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter.\nIn December 2021, the Italian Competition Authority (the \u201cICA\u201d) issued a decision against Amazon Services Europe S.\u00e0 r.l., Amazon Europe Core S.\u00e0\nr.l., Amazon EU S.\u00e0 r.l., Amazon Italia Services S.r.l., and Amazon Italia Logistica S.r.l. claiming that certain of our marketplace and logistics practices in Italy\ninfringe EU competition rules. The decision imposes remedial actions and a fine of \u20ac1.13 billion, which we are paying and will seek to recover pending\nconclusion of all appeals. We believe the ICA\u2019s decision to be without merit and intend to defend ourselves vigorously in this matter.\nIn July 2022, Acceleration Bay, LLC filed a complaint against Amazon Web Services, Inc. in the United States District Court for the District of\nDelaware. The complaint alleges, among other things, that Amazon EC2, Amazon CloudFront, AWS Lambda, Amazon Lumberyard, Luna, Amazon Prime\nVideo, Twitch, Amazon GameLift, GridMate, Amazon EKS, AWS App Mesh, and Amazon VPC infringe U.S. Patent Nos. 6,701,344, entitled \u201cDistributed\nGame Environment\u201d; 6,714,966, entitled \u201cInformation Delivery Service\u201d; 6,732,147, entitled \u201cLeaving a Broadcast Channel\u201d; 6,829,634, entitled\n\u201cBroadcasting Network\u201d; and 6,910,069, entitled \u201cJoining a Broadcast Channel.\u201d The complaint seeks injunctive relief, an unspecified amount of damages,\nenhanced damages, interest, attorneys\u2019 fees, and costs. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in this matter.\nIn November 2022, LightGuide, Inc. filed a complaint against Amazon.com, Inc. and Amazon.com Services LLC in the United States District Court for\nthe Eastern District of Texas. The complaint alleges, among other things, that Amazon\u2019s Nike Intent Detection System used in certain fulfillment centers\ninfringes U.S. Patent Nos. 7,515,981, entitled \u201cLight Guided Assembly System\u201d; and 9,658,614 and 10,528,036, each entitled \u201cLight Guided Assembly System"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 59, "chroma:document": "and Method.\u201d The complaint seeks an unspecified amount of damages, enhanced damages, attorneys\u2019 fees, costs, interest, and injunctive relief. We dispute the\nallegations of wrongdoing and intend to defend ourselves vigorously in this matter.\nIn addition, we are regularly subject to claims, litigation, and other proceedings, including potential regulatory proceedings, involving patent and other\nintellectual property matters, taxes, labor and employment, competition and antitrust, privacy and data protection, consumer protection, commercial disputes,\ngoods and services offered by us and by third parties, and other matters.\nThe outcomes of our legal proceedings and other contingencies are inherently unpredictable, subject to significant uncertainties, and could be material to\nour operating results and cash flows for a particular period. We evaluate, on a regular basis, developments in our legal proceedings and other contingencies that\ncould affect the amount of liability, including amounts in excess of any previous accruals and reasonably possible losses disclosed, and make adjustments and\nchanges to our accruals and disclosures as appropriate. For the matters we disclose that do not include an estimate of the amount of loss or range of losses, such\nan estimate is not possible or is immaterial, and we may be unable to estimate the possible loss or range of losses that could potentially result from the\napplication of non-monetary remedies. Until the final resolution of such matters, if any of our estimates and assumptions change or prove to have been\nincorrect, we may experience losses in excess of the amounts recorded, which could have a material effect on our business, consolidated financial position,\nresults of operations, or cash flows.\nSee also \u201cNote 9 \u2014 Income Taxes.\u201d\n60"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 60, "chroma:document": "Table of Contents\nNote 8 \u2014 STOCKHOLDERS\u2019 EQUITY\nPreferred Stock\nWe have authorized 500 million shares of $0.01 par value preferred stock. No preferred stock was outstanding for any year presented.\nCommon Stock\nCommon shares outstanding plus shares underlying outstanding stock awards totaled 10.4 billion, 10.5 billion, and 10.6 billion, as of December 31,\n2020, 2021, and 2022. These totals include all vested and unvested stock awards outstanding, including those awards we estimate will be forfeited.\nStock Repurchase Activity\nIn March 2022, the Board of Directors authorized a program to repurchase up to $10.0 billion of our common stock, with no fixed expiration, which\nreplaced the previous $5.0 billion stock repurchase authorization, approved by the Board of Directors in February 2016. We repurchased 46.2 million shares of\nour common stock for $6.0 billion in 2022 under these programs. There were no repurchases of common stock in 2020 or 2021. As of December 31, 2022, we\nhave $6.1 billion remaining under the repurchase program.\nStock Award Plans\nEmployees vest in restricted stock unit awards over the corresponding service term, generally between two and five years.\nStock Award Activity\nStock-based compensation expense is as follows (in millions):\nYear Ended December 31,\n2020 2021 2022\nCost of sales $ 283 $ 540 $ 757 \nFulfillment 1,357 1,946 2,745 \nTechnology and content 5,061 6,645 10,621 \nSales and marketing 1,710 2,530 3,875 \nGeneral and administrative 797 1,096 1,623 \nTotal stock-based compensation expense (1) $ 9,208 $ 12,757 $ 19,621 \n___________________\n(1)The related tax benefits were $1.9 billion, $2.7 billion, and $4.3 billion for 2020, 2021, and 2022.\nThe following table summarizes our restricted stock unit activity (in millions):\nNumber of UnitsWeighted Average\nGrant-Date\nFair Value"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 60, "chroma:document": "Number of UnitsWeighted Average\nGrant-Date\nFair Value\nOutstanding as of January 1, 2020 286.7 $ 73 \nUnits granted 158.6 119 \nUnits vested (115.5) 62 \nUnits forfeited (26.5) 82 \nOutstanding as of December 31, 2020 303.3 100 \nUnits granted 127.3 167 \nUnits vested (108.4) 85 \nUnits forfeited (42.3) 116 \nOutstanding as of December 31, 2021 279.9 134 \nUnits granted 262.8 142 \nUnits vested (113.3) 114 \nUnits forfeited (45.0) 143 \nOutstanding as of December 31, 2022 384.4 144 \n61"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 61, "chroma:document": "Table of Contents\nScheduled vesting for outstanding restricted stock units as of December 31, 2022, is as follows (in millions):\n Year Ended    \n 2023 2024 2025 2026 2027 Thereafter Total\nScheduled vesting \u2014 restricted stock units 140.8 136.6 67.3 35.8 1.7 2.2 384.4 \nAs of December 31, 2022, there was $23.8 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements.\nThis 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\nremaining weighted-average recognition period of 1.1 years. The estimated forfeiture rate as of December 31, 2020, 2021, and 2022 was 26.7%, 26.5%, and\n26.5%. Changes in our estimates and assumptions relating to forfeitures may cause us to realize material changes in stock-based compensation expense in the\nfuture.\nDuring 2020, 2021, and 2022, the fair value of restricted stock units that vested was $15.5 billion, $18.2 billion, and $12.8 billion.\nCommon Stock Available for Future Issuance\nAs of December 31, 2022, common stock available for future issuance to employees is 1.7 billion shares.\nNote 9 \u2014 INCOME TAXES\nIn 2020, 2021, and 2022, we recorded net tax provision (benefit) of $2.9 billion, $4.8 billion, and $(3.2) billion. Our U.S. taxable income is reduced by\naccelerated depreciation deductions and increased by the impact of capitalized research and development expenses. Cash taxes paid, net of refunds, were\n$1.7 billion, $3.7 billion, and $6.0 billion for 2020, 2021, and 2022.\nCertain foreign subsidiary earnings and losses are subject to current U.S. taxation and the subsequent repatriation of those earnings is not subject to tax in\nthe U.S. The U.S. tax rules also provide for enhanced accelerated depreciation deductions by allowing the election of full expensing of qualified property,"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 61, "chroma:document": "primarily equipment, through 2022. Our federal tax provision included a partial election for 2020 and 2021, and a full election for 2022. Effective January 1,\n2022, research and development expenses are required to be capitalized and amortized for U.S. tax purposes.\nThe components of the provision (benefit) for income taxes, net are as follows (in millions):\n Year Ended December 31,\n2020 2021 2022\nU.S. Federal:\nCurrent $ 1,835 $ 2,129 $ 2,175 \nDeferred (151) 155 (6,686)\nTotal 1,684 2,284 (4,511)\nU.S. State:\nCurrent 626 763 1,074 \nDeferred (190) (178) (1,302)\nTotal 436 585 (228)\nInternational:\nCurrent 956 2,209 1,682 \nDeferred (213) (287) (160)\nTotal 743 1,922 1,522 \nProvision (benefit) for income taxes, net $ 2,863 $ 4,791 $ (3,217)\nU.S. and international components of income (loss) before income taxes are as follows (in millions):\n Year Ended December 31,\n 2020 2021 2022\nU.S. $ 20,219 $ 35,879 $ (8,225)\nInternational 3,959 2,272 2,289 \nIncome (loss) before income taxes $ 24,178 $ 38,151 $ (5,936)\n62"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 62, "chroma:document": "Table of Contents\nThe items accounting for differences between income taxes computed at the federal statutory rate and the provision recorded for income taxes are as\nfollows (in millions):\n Year Ended December 31,\n 2020 2021 2022\nIncome taxes computed at the federal statutory rate $ 5,078 $ 8,012 $ (1,246)\nEffect of:\nTax impact of foreign earnings and losses (538) (1,349) (370)\nState taxes, net of federal benefits 343 465 (173)\nTax credits (639) (1,136) (1,006)\nStock-based compensation (1) (1,107) (1,094) 612 \nForeign income deduction (2) (372) (301) (1,258)\nOther, net 98 194 224 \nTotal $ 2,863 $ 4,791 $ (3,217)\n___________________\n(1)Includes non-deductible stock-based compensation and excess tax benefits or shortfalls from stock-based compensation. Our tax provision includes $1.8\nbillion and $1.9 billion of excess tax benefits from stock-based compensation for 2020 and 2021, and a $33 million tax shortfall from stock-based\ncompensation for 2022.\n(2)U.S. companies are eligible for a deduction that lowers the effective tax rate on certain foreign income. This regime is referred to as the Foreign-Derived\nIntangible Income deduction.\nOur provision for income taxes in 2021 was higher than in 2020 primarily due to an increase in pretax income. This was partially offset by an increase in\nU.S. federal research and development credits and the impact of the distribution of certain intangible assets from Luxembourg to the U.S. in Q4 2021, resulting\nin the utilization of $2.6 billion of Luxembourg deferred tax assets previously subject to a valuation allowance.\nWe generated an income tax benefit in 2022 as compared to a provision for income taxes in 2021 primarily due to a decrease in pretax income and an\nincrease in the foreign income deduction. This was partially offset by a reduction in excess tax benefits from stock-based compensation and a decrease in the\ntax impact of foreign earnings and losses driven by a decline in the favorable effects of corporate restructuring transactions. The foreign income deduction"}


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id: 548d8d5c-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 62, "chroma:document": "benefit recognized in 2022 reflects a change in our application of tax regulations related to the computation of qualifying foreign income and includes an\nincome tax benefit of approximately $655 million related to years prior to 2022.\nWe intend to invest substantially all of our foreign subsidiary earnings, as well as our capital in our foreign subsidiaries, indefinitely outside of the U.S.\nin those jurisdictions in which we would incur significant, additional costs upon repatriation of such amounts.\n63"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 63, "chroma:document": "Table of Contents\nDeferred income tax assets and liabilities are as follows (in millions):\n December 31,\n 2021 2022\nDeferred tax assets (1):\nLoss carryforwards U.S. - Federal/States 228 386 \nLoss carryforwards - Foreign 2,417 2,831 \nAccrued liabilities, reserves, and other expenses 2,821 3,280 \nStock-based compensation 2,738 4,295 \nDepreciation and amortization 941 1,009 \nOperating lease liabilities 15,399 18,285 \nCapitalized research and development \u2014 6,824 \nOther items 603 1,023 \nTax credits 626 950 \nTotal gross deferred tax assets 25,773 38,883 \nLess valuation allowances (2) (3,596) (4,374)\nDeferred tax assets, net of valuation allowances 22,177 34,509 \nDeferred tax liabilities:\nDepreciation and amortization (3,562) (9,039)\nOperating lease assets (14,422) (17,140)\nAssets held for investment (4,019) \u2014 \nOther items (668) (817)\nNet deferred tax assets (liabilities), net of valuation allowances $ (494)$ 7,513 \n ___________________\n(1)Deferred tax assets are presented after tax effects and net of tax contingencies.\n(2)Relates primarily to deferred tax assets that would only be realizable upon the generation of net income in certain foreign taxing jurisdictions or future\ncapital gains, as well as tax credits.\nOur valuation allowances primarily relate to foreign deferred tax assets, including substantially all of our foreign net operating loss carryforwards as of\nDecember 31, 2022. Our foreign net operating loss carryforwards for income tax purposes as of December 31, 2022 were approximately $10.4 billion before\ntax effects and certain of these amounts are subject to annual limitations under applicable tax law. If not utilized, a portion of these losses will begin to expire in\n2023.\nTax Contingencies\nWe are subject to income taxes in the U.S. (federal and state) and numerous foreign jurisdictions. Significant judgment is required in evaluating our tax\npositions and determining our provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the"}


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id: 548d8e10-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 63, "chroma:document": "ultimate tax determination is uncertain. We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional\ntaxes will be due. These reserves are established when we believe that certain positions might be challenged despite our belief that our tax return positions are\nfully supportable. We adjust these reserves in light of changing facts and circumstances, such as the outcome of tax audits. The provision for income taxes\nincludes the impact of reserve provisions and changes to reserves that are considered appropriate.\n64"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 64, "chroma:document": "Table of Contents\nThe reconciliation of our tax contingencies is as follows (in millions):\n December 31,\n 2020 2021 2022\nGross tax contingencies \u2013 January 1 $ 3,923 $ 2,820 $ 3,242 \nGross increases to tax positions in prior periods 88 403 274 \nGross decreases to tax positions in prior periods (465) (354) (172)\nGross increases to current period tax positions 507 507 706 \nSettlements with tax authorities (1,207) (60) (20)\nLapse of statute of limitations (26) (74) (28)\nGross tax contingencies \u2013 December 31 (1) $ 2,820 $ 3,242 $ 4,002 \n ___________________\n(1)As of December 31, 2022, we had approximately $4.0 billion of accrued tax contingencies of which $2.2 billion, if fully recognized, would decrease our\neffective tax rate.\nAs of December 31, 2021 and 2022, we had accrued interest and penalties, net of federal income tax benefit, related to tax contingencies of $110 million\nand $103 million. Interest and penalties, net of federal income tax benefit, recognized for the years ended December 31, 2020, 2021, and 2022 were $(48)\nmillion, $28 million, and $(7) million.\nWe are under examination, or may be subject to examination, by the Internal Revenue Service for the calendar year 2016 and thereafter. These\nexaminations may lead to ordinary course adjustments or proposed adjustments to our taxes or our net operating losses with respect to years under examination\nas well as subsequent periods.\nWe are also subject to taxation in various states and other foreign jurisdictions including China, France, Germany, India, Japan, Luxembourg, and the\nUnited Kingdom. We are under, or may be subject to, audit or examination and additional assessments by the relevant authorities in respect of these particular\njurisdictions primarily for 2011 and thereafter. We are currently disputing tax assessments in multiple jurisdictions, including with respect to the allocation and\ncharacterization of income.\nIn September 2022, the Luxembourg Tax Authority (\u201cLTA\u201d) denied the tax basis of certain intangible assets that we distributed from Luxembourg to the"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 64, "chroma:document": "U.S. in 2021. We believe the LTA\u2019s position is without merit and intend to defend ourselves vigorously in this matter.\nIn February 2023, we received a decision by the Indian Tax Authority (\u201cITA\u201d) that tax applies to cloud services fees paid to the U.S. We will need to\nremit taxes on the services in question, including for a portion of prior years, until this matter is resolved, which payments could be significant in the aggregate.\nWe believe the ITA\u2019s decision is without merit, we intend to defend our position vigorously, and we expect to recoup taxes paid. If this matter is adversely\nresolved, we would reflect significant additional tax expense, including for taxes previously paid.\nIn October 2014, the European Commission opened a formal investigation to examine whether decisions by the tax authorities in Luxembourg with\nregard to the corporate income tax paid by certain of our subsidiaries comply with European Union rules on state aid. On October 4, 2017, the European\nCommission announced its decision that determinations by the tax authorities in Luxembourg did not comply with European Union rules on state aid. Based on\nthat decision the European Commission announced an estimated recovery amount of approximately \u20ac250 million, plus interest, for the period May 2006\nthrough June 2014, and ordered Luxembourg tax authorities to calculate the actual amount of additional taxes subject to recovery. Luxembourg computed an\ninitial recovery amount, consistent with the European Commission\u2019s decision, which we deposited into escrow in March 2018, subject to adjustment pending\nconclusion of all appeals. In December 2017, Luxembourg appealed the European Commission\u2019s decision. In May 2018, we appealed. On May 12, 2021, the\nEuropean Union General Court annulled the European Commission\u2019s state aid decision. In July 2021, the European Commission appealed the decision to the\nEuropean Court of Justice. We will continue to defend ourselves vigorously in this matter.\nChanges in tax laws, regulations, administrative practices, principles, and interpretations may impact our tax contingencies. Due to various factors,\nincluding the inherent complexities and uncertainties of the judicial, administrative, and regulatory processes in certain jurisdictions, the timing of the\nresolution of income tax controversies is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities\nmay differ from the amounts accrued. It is reasonably possible that within the next twelve months we will receive additional assessments by various tax"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 64, "chroma:document": "authorities or possibly reach resolution of income tax controversies in one or more jurisdictions. These assessments or settlements could result in changes to\nour contingencies related to positions on prior years\u2019 tax filings. The actual amount of any change could vary significantly depending on the ultimate timing\nand nature of any settlements. We cannot currently provide an estimate of the range of possible outcomes.\n65"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 65, "chroma:document": "Table of Contents\nNote 10 \u2014 SEGMENT INFORMATION\nWe have organized our operations into three segments: North America, International, and AWS. We allocate to segment results the operating expenses\n\u201cFulfillment,\u201d \u201cTechnology and content,\u201d \u201cSales and marketing,\u201d and \u201cGeneral and administrative\u201d based on usage, which is generally reflected in the segment\nin which the costs are incurred. The majority of technology infrastructure costs are allocated to the AWS segment based on usage. The majority of the\nremaining non-infrastructure technology costs are incurred in the U.S. and are allocated to our North America segment. There are no internal revenue\ntransactions between our reportable segments. These segments reflect the way our chief operating decision maker evaluates the Company\u2019s business\nperformance and manages its operations.\nNorth America\nThe North America segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions\nthrough North America-focused online and physical stores. This segment includes export sales from these online stores.\nInternational\nThe International segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through\ninternationally-focused online stores. This segment includes export sales from these internationally-focused online stores (including export sales from these\nonline stores to customers in the U.S., Mexico, and Canada), but excludes export sales from our North America-focused online stores.\nAWS\nThe AWS segment consists of amounts earned from global sales of compute, storage, database, and other services for start-ups, enterprises, government\nagencies, and academic institutions.\nInformation on reportable segments and reconciliation to consolidated net income (loss) is as follows (in millions):\n  Year Ended December 31,\n 2020 2021 2022\nNorth America\nNet sales $ 236,282 $ 279,833 $ 315,880 \nOperating expenses 227,631 272,562 318,727 \nOperating income (loss) $ 8,651 $ 7,271 $ (2,847)\nInternational\nNet sales $ 104,412 $ 127,787 $ 118,007 \nOperating expenses 103,695 128,711 125,753 \nOperating income (loss) $ 717 $ (924)$ (7,746)\nAWS\nNet sales $ 45,370 $ 62,202 $ 80,096 \nOperating expenses 31,839 43,670 57,255"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 65, "chroma:document": "Operating expenses 31,839 43,670 57,255 \nOperating income $ 13,531 $ 18,532 $ 22,841 \nConsolidated\nNet sales $ 386,064 $ 469,822 $ 513,983 \nOperating expenses 363,165 444,943 501,735 \nOperating income 22,899 24,879 12,248 \nTotal non-operating income (expense) 1,279 13,272 (18,184)\nBenefit (provision) for income taxes (2,863) (4,791) 3,217 \nEquity-method investment activity, net of tax 16 4 (3)\nNet income (loss) $ 21,331 $ 33,364 $ (2,722)\n66"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 66, "chroma:document": "Table of Contents\nNet sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):\n  Year Ended December 31,\n 2020 2021 2022\nNet Sales:\nOnline stores (1) $ 197,346 $ 222,075 $ 220,004 \nPhysical stores (2) 16,227 17,075 18,963 \nThird-party seller services (3) 80,461 103,366 117,716 \nSubscription services (4) 25,207 31,768 35,218 \nAdvertising services (5) 19,773 31,160 37,739 \nAWS 45,370 62,202 80,096 \nOther (6) 1,680 2,176 4,247 \nConsolidated $ 386,064 $ 469,822 $ 513,983 \n___________________\n(1)Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of\nconsumable and durable goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and\nsoftware. These product sales include digital products sold on a transactional basis. Digital product subscriptions that provide unlimited viewing or usage\nrights are included in \u201cSubscription services.\u201d\n(2)Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our\nphysical stores are included in \u201cOnline stores.\u201d\n(3)Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.\n(4)Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-\nAWS subscription services.\n(5)Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video\nadvertising.\n(6)Includes sales related to various other offerings, such as certain licensing and distribution of video content and shipping services, and our co-branded credit\ncard agreements.\nNet sales are attributed to countries primarily based on country-focused online and physical stores or, for AWS purposes, the selling entity. Net sales"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 66, "chroma:document": "attributed to countries that represent a significant portion of consolidated net sales are as follows (in millions):\n Year Ended December 31,\n 2020 2021 2022\nUnited States $ 263,520 $ 314,006 $ 356,113 \nGermany 29,565 37,326 33,598 \nUnited Kingdom 26,483 31,914 30,074 \nJapan 20,461 23,071 24,396 \nRest of world 46,035 63,505 69,802 \nConsolidated $ 386,064 $ 469,822 $ 513,983 \n67"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 67, "chroma:document": "Table of Contents\nTotal segment assets exclude corporate assets, such as cash and cash equivalents, marketable securities, other long-term investments, corporate facilities,\ngoodwill and other acquired intangible assets, and tax assets. Technology infrastructure assets are allocated among the segments based on usage, with the\nmajority allocated to the AWS segment. Total segment assets reconciled to consolidated amounts are as follows (in millions):\n December 31,\n 2020 2021 2022\nNorth America (1) $ 108,405 $ 161,255 $ 185,268 \nInternational (1) 42,212 57,983 64,666 \nAWS (2) 47,574 63,835 88,491 \nCorporate 123,004 137,476 124,250 \nConsolidated $ 321,195 $ 420,549 $ 462,675 \n___________________\n(1)North America and International segment assets primarily consist of property and equipment, operating leases, inventory, and accounts receivable.\n(2)AWS segment assets primarily consist of property and equipment and accounts receivable.\nProperty and equipment, net by segment is as follows (in millions):\n December 31,\n 2020 2021 2022\nNorth America $ 54,912 $ 83,640 $ 90,076 \nInternational 15,375 21,718 23,347 \nAWS 32,151 43,245 60,324 \nCorporate 10,676 11,678 12,968 \nConsolidated $ 113,114 $ 160,281 $ 186,715 \nTotal net additions to property and equipment by segment are as follows (in millions):\n Year Ended December 31,\n 2020 2021 2022\nNorth America (1) $ 29,889 $ 37,397 $ 23,682 \nInternational (1) 8,072 10,259 6,711 \nAWS (2) 16,530 22,047 27,755 \nCorporate 3,485 2,622 2,688 \nConsolidated $ 57,976 $ 72,325 $ 60,836 \n___________________"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 67, "chroma:document": "___________________\n(1)Includes property and equipment added under finance leases of $5.6 billion, $3.6 billion, and $422 million in 2020, 2021, and 2022, and under build-to-\nsuit lease arrangements of $2.7 billion, $5.6 billion, and $3.2 billion in 2020, 2021, and 2022.\n(2)Includes property and equipment added under finance leases of $7.7 billion, $3.5 billion, and $253 million in 2020, 2021, and 2022, and under build-to-\nsuit lease arrangements of $130 million, $51 million, and $20 million in 2020, 2021, and 2022.\nU.S. property and equipment, net and operating leases were $109.5 billion, $155.0 billion, and $180.0 billion, as of December 31, 2020, 2021, and 2022,\nand non-U.S. property and equipment, net and operating leases were $41.2 billion, $61.3 billion, and $72.9 billion as of December 31, 2020, 2021, and 2022.\nExcept for the U.S., property and equipment, net and operating leases in any single country were less than 10% of consolidated property and equipment, net\nand operating leases.\nDepreciation and amortization expense on property and equipment, including corporate property and equipment, are allocated to all segments based on\nusage. Total depreciation and amortization expense, by segment, is as follows (in millions):\n Year Ended December 31,\n 2020 2021 2022\nNorth America $ 6,421 $ 9,234 $ 11,565 \nInternational 2,215 3,022 3,483 \nAWS 7,603 10,653 9,876 \nConsolidated $ 16,239 $ 22,909 $ 24,924 \n68"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 68, "chroma:document": "Table of Contents\nItem 9. Changes in and Disagreements with Accountants On Accounting and Financial Disclosure\nNone.\nItem 9A. Controls and Procedures\nEvaluation of Disclosure Controls and Procedures\nWe carried out an evaluation required by the Securities Exchange Act of 1934 (the \u201c1934 Act\u201d), under the supervision and with the participation of our\nprincipal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined\nin Rule 13a-15(e) of the 1934 Act, as of December 31, 2022. Based on this evaluation, our principal executive officer and principal financial officer concluded\nthat, as of December 31, 2022, our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed\nby us in the reports that we file or submit under the 1934 Act is recorded, processed, summarized, and reported within the time periods specified in the SEC\u2019s\nrules and forms and to provide reasonable assurance that such information is accumulated and communicated to our management, including our principal\nexecutive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.\nManagement\u2019s Report on Internal Control over Financial Reporting\nManagement is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) of the 1934\nAct. Management has assessed the effectiveness of our internal control over financial reporting as of December 31, 2022 based on criteria established in\nInternal Control \u2014 Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. As a result of this\nassessment, management concluded that, as of December 31, 2022, our internal control over financial reporting was effective in providing reasonable assurance\nregarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted\naccounting principles. Ernst & Young has independently assessed the effectiveness of our internal control over financial reporting and its report is included\nbelow.\nChanges in Internal Control Over Financial Reporting\nThere were no changes in our internal control over financial reporting during the quarter ended December 31, 2022 that materially affected, or are\nreasonably likely to materially affect, our internal control over financial reporting.\nLimitations on Controls\nOur disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving their"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 68, "chroma:document": "objectives as specified above. Management does not expect, however, that our disclosure controls and procedures or our internal control over financial\nreporting will prevent or detect all error and fraud. Any control system, no matter how well designed and operated, is based upon certain assumptions and can\nprovide only reasonable, not absolute, assurance that its objectives will be met. Further, no evaluation of controls can provide absolute assurance that\nmisstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected.\n69"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 69, "chroma:document": "Table of Contents\nReport of Independent Registered Public Accounting Firm\nThe Board of Directors and Shareholders\nAmazon.com, Inc.\nOpinion on Internal Control Over Financial Reporting\nWe have audited Amazon.com, Inc.\u2019s internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control\n\u2014 Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our\nopinion, Amazon.com, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022,\nbased on the COSO criteria.\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated\nbalance sheets of the Company as of December 31, 2022 and 2021, and the related consolidated statements of operations, comprehensive income (loss),\nstockholders\u2019 equity, and cash flows for each of the three years in the period ended December 31, 2022 and the related notes and our report dated February 2,\n2023 expressed an unqualified opinion thereon.\nBasis for Opinion\nThe Company\u2019s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness\nof internal control over financial reporting included in the accompanying Management\u2019s Report on Internal Control over Financial Reporting. Our\nresponsibility is to express an opinion on the Company\u2019s internal control over financial reporting based on our audit. We are a public accounting firm registered\nwith the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules\nand regulations of the Securities and Exchange Commission and the PCAOB.\nWe conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable\nassurance about whether effective internal control over financial reporting was maintained in all material respects.\nOur audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and\nevaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered\nnecessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.\nDefinition and Limitations of Internal Control Over Financial Reporting"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 69, "chroma:document": "Definition and Limitations of Internal Control Over Financial Reporting\nA company\u2019s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting\nand the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company\u2019s internal control\nover financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly\nreflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit\npreparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being\nmade only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or\ntimely detection of unauthorized acquisition, use, or disposition of the company\u2019s assets that could have a material effect on the financial statements.\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation\nof effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance\nwith the policies or procedures may deteriorate.\n/s/ Ernst & Young LLP\nSeattle, Washington\nFebruary 2, 2023\n70"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 70, "chroma:document": "Table of Contents\nItem 9B. Other Information\nNot applicable.\nItem 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections\nNot applicable.\nPART III\nItem 10. Directors, Executive Officers, and Corporate Governance\nInformation regarding our Executive Officers required by Item 10 of Part III is set forth in Item 1 of Part I \u201cBusiness \u2014 Information About Our\nExecutive Officers.\u201d Information required by Item 10 of Part III regarding our Directors and any material changes to the process by which security holders may\nrecommend nominees to the Board of Directors is included in our Proxy Statement relating to our 2023 Annual Meeting of Shareholders, and is incorporated\nherein by reference. Information relating to our Code of Business Conduct and Ethics and, to the extent applicable, compliance with Section 16(a) of the 1934\nAct is set forth in our Proxy Statement relating to our 2023 Annual Meeting of Shareholders and is incorporated herein by reference. To the extent permissible\nunder Nasdaq rules, we intend to disclose amendments to our Code of Business Conduct and Ethics, as well as waivers of the provisions thereof, on our\ninvestor relations website under the heading \u201cCorporate Governance\u201d at amazon.com/ir.\nItem 11. Executive Compensation\nInformation required by Item 11 of Part III is included in our Proxy Statement relating to our 2023 Annual Meeting of Shareholders and is incorporated\nherein by reference.\nItem 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters\nInformation required by Item 12 of Part III is included in our Proxy Statement relating to our 2023 Annual Meeting of Shareholders and is incorporated\nherein by reference.\nItem 13. Certain Relationships and Related Transactions, and Director Independence\nInformation required by Item 13 of Part III is included in our Proxy Statement relating to our 2023 Annual Meeting of Shareholders and is incorporated\nherein by reference.\nItem 14. Principal Accountant Fees and Services\nInformation required by Item 14 of Part III is included in our Proxy Statement relating to our 2023 Annual Meeting of Shareholders and is incorporated\nherein by reference.\n71"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 71, "chroma:document": "Table of Contents\nPART IV\nItem 15. Exhibits, Financial Statement Schedules\n(a) List of Documents Filed as a Part of This Report:\n(1) Index to Consolidated Financial Statements:\nReport of Ernst & Young LLP, Independent Registered Public Accounting Firm\nConsolidated Statements of Cash Flows for each of the three years ended December 31, 2022\nConsolidated Statements of Operations for each of the three years ended December 31, 2022\nConsolidated Statements of Comprehensive Income (Loss) for each of the three years ended December 31, 2022\nConsolidated Balance Sheets as of December 31, 2021 and 2022\nConsolidated Statements of Stockholders\u2019 Equity for each of the three years ended December 31, 2022\nNotes to Consolidated Financial Statements\nReport of Ernst & Young LLP, Independent Registered Public Accounting Firm\n(2) Index to Financial Statement Schedules:\nAll schedules have been omitted because the required information is included in the consolidated financial statements or the notes thereto, or\nbecause it is not required.\n(3) Index to Exhibits\nSee exhibits listed under Part (b) below.\n(b) Exhibits:\nExhibit\nNumber Description\n3.1 Amended and Restated Certificate of Incorporation of Amazon.com, Inc. (incorporated by reference to the Company\u2019s Current Report on Form\n8-K, filed May 27, 2022).\n3.2 Amended and Restated Bylaws of Amazon.com, Inc. (incorporated by reference to the Company\u2019s Current Report on Form 8-K, filed January 6,\n2023).\n4.1 Indenture, dated as of November 29, 2012, between Amazon.com, Inc. and Wells Fargo Bank, National Association, as trustee (incorporated by\nreference to the Company\u2019s Current Report on Form 8-K, filed November 29, 2012).\n4.2 Supplemental Indenture, dated as of April 13, 2022, among Amazon.com, Inc., Wells Fargo Bank, National Association, as prior trustee, and\nComputershare Trust Company, National Association, as successor trustee, containing Form of 2.730% Note due 2024, Form of 3.000% Note"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 71, "chroma:document": "due 2025, Form of 3.300% Note due 2027, Form of 3.450% Note due 2029, Form of 3.600% Note due 2032, Form of 3.950% Note due 2052,\nand Form of 4.100% Note due 2062 (incorporated by reference to the Company\u2019s Current Report on Form 8-K, filed April 13, 2022).\n4.3 Officers\u2019 Certificate of Amazon.com, Inc., dated as of December 5, 2014, containing Form of 2.600% Note due 2019, Form of 3.300% Note due\n2021, Form of 3.800% Note due 2024, Form of 4.800% Note due 2034, and Form of 4.950% Note due 2044 (incorporated by reference to the\nCompany\u2019s Current Report on Form 8-K, filed December 5, 2014).\n4.4 Officers\u2019 Certificate of Amazon.com, Inc., dated as of August 22, 2017, containing Form of 1.900% Note due 2020, Form of 2.400% Note due\n2023, Form of 2.800% Note due 2024, Form of 3.150% Note due 2027, Form of 3.875% Note due 2037, Form of 4.050% Note due 2047, and\nForm of 4.250% Note due 2057 (incorporated by reference to the Company\u2019s Current Report on Form 8-K, filed August 22, 2017).\n4.5 Officers\u2019 Certificate of Amazon.com, Inc., dated as of December 20, 2017, containing Form of 5.200% Note due 2025 (incorporated by\nreference to the Company\u2019s Current Report on Form 8-K, filed December 20, 2017).\n72"}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 72, "chroma:document": "Table of Contents\n4.6 Officers\u2019 Certificate of Amazon.com, Inc., dated as of June 3, 2020, containing Form of 0.400% Note due 2023, Form of 0.800% Note due\n2025, Form of 1.200% Note due 2027, Form of 1.500% Note due 2030, Form of 2.500% Note due 2050, and Form of 2.700% Note due 2060\n(incorporated by reference to the Company\u2019s Current Report on Form 8-K, filed June 3, 2020).\n4.7 Officers\u2019 Certificate of Amazon.com, Inc., dated as of May 12, 2021, containing Form of 0.250% Note due 2023, Form of 0.450% Note due\n2024, Form of 1.000% Note due 2026, Form of 1.650% Note due 2028, Form of 2.100% Note due 2031, Form of 2.875% Note due 2041, Form\nof 3.100% Note due 2051, and Form of 3.250% Note due 2061 (incorporated by reference to the Company\u2019s Current Report on Form 8-K, filed\nMay 12, 2021).\n4.8 Officers\u2019 Certificate of Amazon.com, Inc., dated as of December 1, 2022, containing Form of 4.700% Note due 2024, Form of 4.600% Note due\n2025, Form of 4.550% Note due 2027, Form of 4.650% Note due 2029, and Form of 4.700% Note due 2032 (incorporated by reference to the\nCompany\u2019s Current Report on Form 8-K, filed December 1, 2022).\n4.9 Description of Securities (incorporated by reference to the Company\u2019s Annual Report on Form 10-K for the Year ended December 31, 2019).\n10.1\u2020 1997 Stock Incentive Plan (amended and restated) (incorporated by reference to the Company\u2019s Quarterly Report on Form 10-Q for the Quarter\nended June 30, 2022)."}


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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 72, "chroma:document": "ended June 30, 2022).\n10.2\u2020 1999 Nonofficer Employee Stock Option Plan (amended and restated) (incorporated by reference to the Company\u2019s Quarterly Report on Form\n10-Q for the Quarter ended June 30, 2022).\n10.3\u2020 Form of Indemnification Agreement between Amazon.com, Inc. and each of its Directors (incorporated by reference to Exhibit 10.1 to the\nCompany\u2019s Registration Statement on Form S-1 (Registration No. 333-23795) filed March 24, 1997, as amended on April 21, 1997).\n10.4\u2020 Form of Restricted Stock Unit Agreement for Officers and Employees (incorporated by reference to the Company\u2019s Annual Report on Form 10-\nK for the Year ended December 31, 2002).\n10.5\u2020 Form of Restricted Stock Unit Agreement for Directors (incorporated by reference to the Company\u2019s Annual Report on Form 10-K for the Year\nended December 31, 2002).\n10.6\u2020 Form of Restricted Stock Agreement (incorporated by reference to the Company\u2019s Annual Report on Form 10-K for the Year ended December\n31, 2001).\n10.7\u2020 Form of Global Restricted Stock Unit Award Agreement for Executive Officers (incorporated by reference to the Company\u2019s Annual Report on\nForm 10-K for the Year ended December 31, 2021).\n10.8 Amended and Restated Credit Agreement, dated as of March 29, 2022, among Amazon.com, Inc., JPMorgan Chase Bank, N.A., as\nadministrative agent, and the other lenders party thereto (incorporated by reference to the Company\u2019s Quarterly Report on Form 10-Q for the\nQuarter ended March 31, 2022).\n10.9 364-Day Revolving Credit Agreement, dated as of November 18, 2022, among Amazon.com, Inc., JPMorgan Chase Bank, N.A., as\nadministrative agent, and the other lenders party thereto (incorporated by reference to the Company\u2019s Current Report on Form 8-K, filed\nNovember 18, 2022).\n10.10 Term Loan Agreement, dated as of January 3, 2023, among Amazon.com, Inc., Toronto Dominion (Texas) LLC, as administrative agent, and the"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 72, "chroma:document": "other lenders party thereto (incorporated by reference to the Company\u2019s Current Report on Form 8-K, filed January 3, 2023).\n21.1 List of Significant Subsidiaries.\n23.1 Consent of Independent Registered Public Accounting Firm.\n31.1 Certification of Andrew R. Jassy, President and Chief Executive Officer of Amazon.com, Inc., pursuant to Rule 13a-14(a) under the Securities\nExchange Act of 1934.\n31.2 Certification of Brian T. Olsavsky, Senior Vice President and Chief Financial Officer of Amazon.com, Inc., pursuant to Rule 13a-14(a) under the\nSecurities Exchange Act of 1934.\n73"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 73, "chroma:document": "Table of Contents\n32.1 Certification of Andrew R. Jassy, President and Chief Executive Officer of Amazon.com, Inc., pursuant to 18 U.S.C. Section 1350.\n32.2 Certification of Brian T. Olsavsky, Senior Vice President and Chief Financial Officer of Amazon.com, Inc., pursuant to 18 U.S.C. Section 1350.\n101 The following financial statements from the Company\u2019s Annual Report on Form 10-K for the year ended December 31, 2022, formatted in\nInline XBRL: (i) Consolidated Statements of Cash Flows, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of\nComprehensive Income (Loss), (iv) Consolidated Balance Sheets, (v) Consolidated Statements of Stockholders\u2019 Equity, and (vi) Notes to\nConsolidated Financial Statements, tagged as blocks of text and including detailed tags.\nAs permitted by Item 601(b)(4)(iii)(A) of Regulation S-K, the Company has not filed with this Annual Report on Form 10-K certain instruments\ndefining the rights of holders of long-term debt of the Company and its subsidiaries because the total amount of securities authorized thereunder\ndoes not exceed 10 percent of the total assets of the Company and its subsidiaries on a consolidated basis. The Company agrees to furnish a\ncopy of such agreements to the Commission upon request.\n104 The cover page from the Company\u2019s Annual Report on Form 10-K for the year ended December 31, 2022, formatted in Inline XBRL (included\nas Exhibit 101).\n__________________\n\u2020    Executive Compensation Plan or Agreement.\nItem 16. Form 10-K Summary\nNone.\n74"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 74, "chroma:document": "Table of Contents\nSIGNATURES\nPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its\nbehalf by the undersigned, thereunto duly authorized, as of February 2, 2023.\n \nAMAZON.COM, INC.\nBy: /s/ Andrew R. Jassy\nAndrew R. Jassy\nPresident and Chief Executive Officer\nPursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the\nregistrant and in the capacities indicated as of February 2, 2023.  \nSignature Title\n/s/ Andrew R. Jassy\nAndrew R. Jassy President and Chief Executive Officer (Principal Executive Officer) and Director\n/s/ Brian T. Olsavsky\nBrian T. Olsavsky Senior Vice President and Chief Financial Officer (Principal Financial Officer)\n/s/ Shelley L. Reynolds\nShelley L. Reynolds Vice President, Worldwide Controller (Principal Accounting Officer)\n/s/ Jeffrey P. Bezos\nJeffrey P. Bezos Executive Chair\n/s/ Keith B. Alexander\nKeith B. Alexander Director\n/s/ Edith W. Cooper\nEdith W. Cooper Director\n/s/ Jamie S. Gorelick\nJamie S. Gorelick Director\n/s/ Daniel P. Huttenlocher\nDaniel P. Huttenlocher Director\n/s/ Judith A. McGrath\nJudith A. McGrath Director\n/s/ Indra K. Nooyi\nIndra K. Nooyi Director\n/s/ Jonathan J. Rubinstein\nJonathan J. Rubinstein Director\n/s/ Patricia Q. Stonesifer\nPatricia Q. Stonesifer Director\n/s/ Wendell P. Weeks\nWendell P. Weeks Director\n75"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 75, "chroma:document": "Exhibit 21.1\nAMAZON.COM, INC.\nLIST OF SIGNIFICANT SUBSIDIARIES\nLegal Name Jurisdiction Percent Owned\nAmazon.com Services LLC Delaware 100 %\nAmazon.com Sales, Inc. Delaware 100 %\nAmazon Data Services, Inc. Delaware 100 %\nAmazon Web Services, Inc. Delaware 100 %\nAmazon Technologies, Inc. Nevada 100 %\nAmazon.com NV Investment Holdings LLC Nevada 100 %\nAmazon US Services LLC Delaware 100 %\nA100 ROW, Inc. Delaware 100 %"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 76, "chroma:document": "Exhibit 23.1\n \nConsent of Independent Registered Public Accounting Firm\nWe consent to the incorporation by reference in the following Registration Statements:\n(a)    Registration Statement (Form S-4 No. 333-55943), as amended, pertaining to the acquisition shelf-registration of Amazon.com, Inc. common stock,\n(b)    Registration Statement (Form S-8 No. 333-28763), as amended, pertaining to the Amazon.com, Inc. 1997 Stock Incentive Plan (formerly the \u201c1997\nStock Option Plan\u201d) and the Amended and Restated 1994 Stock Option Plan of Amazon.com, Inc.,\n(c)    Registration Statement (Form S-8 No. 333-74419) pertaining to the Amazon.com, Inc. 1999 Nonofficer Employee Stock Option Plan,\n(d)    Registration Statement (Form S-8 POS No. 333-160831) pertaining to the Zappos.com, Inc. 2009 Stock Plan,\n(e)    Registration Statement (Form S-8 No. 333-169470) pertaining to the Amazon.com, Inc. 1997 Stock Incentive Plan,\n(f)    Registration Statement (Form S-8 No. 333-173054), pertaining to the Quidsi, Inc. (fka1800Diapers, Inc.) 2006 Stock Option/Stock Issuance Plan,\n(g)    Registration Statement (Form S-8 No. 333-181073) pertaining to the Kiva Systems, Inc. 2003 Stock Plan, as amended,\n(h)    Registration Statement (Form S-8 No. 333-199572) pertaining to the Twitch Interactive, Inc. Amended and Restated 2007 Stock Plan,\n(i)    Registration Statement (Form S-8 No. 333-207591) pertaining to the Elemental Technologies, Inc. 2006 Stock Incentive Plan, as amended and\nrestated,\n(j)    Registration Statement (Form S-3 No. 333-238831) pertaining to the shelf-registration of Amazon.com, Inc. securities, and\n(k)    Registration Statement (Form S-8 No. 333-249847) pertaining to the Amazon.com, Inc. 1997 Stock Incentive Plan (as Amended and Restated)."}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 76, "chroma:document": "of our reports dated February 2, 2023, with respect to the consolidated financial statements of Amazon.com, Inc. and the effectiveness of internal control over\nfinancial reporting of Amazon.com, Inc. included in this Annual Report (Form 10-K) of Amazon.com, Inc. for the year ended December 31, 2022.\n/s/ Ernst & Young LLP\nSeattle, Washington\nFebruary 2, 2023"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 77, "chroma:document": "Exhibit 31.1\nCERTIFICATIONS\nI, Andrew R. Jassy, certify that:\n1. I have reviewed this Form 10-K of Amazon.com, Inc.;\n2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the\nstatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;\n3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the\nfinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;\n4. The registrant\u2019s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in\nExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the\nregistrant and have:\n(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to\nensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,\nparticularly during the period in which this report is being prepared;\n(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our\nsupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external\npurposes in accordance with generally accepted accounting principles;\n(c) Evaluated the effectiveness of the registrant\u2019s disclosure controls and procedures and presented in this report our conclusions about the\neffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and\n(d) Disclosed in this report any change in the registrant\u2019s internal control over financial reporting that occurred during the registrant\u2019s most recent\nfiscal quarter (the registrant\u2019s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect,\nthe registrant\u2019s internal control over financial reporting; and"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 77, "chroma:document": "the registrant\u2019s internal control over financial reporting; and\n5. The registrant\u2019s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the\nregistrant\u2019s auditors and the audit committee of the registrant\u2019s board of directors (or persons performing the equivalent functions):\n(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably\nlikely to adversely affect the registrant\u2019s ability to record, process, summarize and report financial information; and\n(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant\u2019s internal control\nover financial reporting.\n \n/s/ Andrew R. Jassy\nAndrew R. Jassy\nPresident and Chief Executive Officer\n(Principal Executive Officer)\nDate: February 2, 2023"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 78, "chroma:document": "Exhibit 31.2\nCERTIFICATIONS\nI, Brian T. Olsavsky, certify that:\n1. I have reviewed this Form 10-K of Amazon.com, Inc.;\n2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the\nstatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;\n3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the\nfinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;\n4. The registrant\u2019s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in\nExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the\nregistrant and have:\n(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to\nensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,\nparticularly during the period in which this report is being prepared;\n(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our\nsupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external\npurposes in accordance with generally accepted accounting principles;\n(c) Evaluated the effectiveness of the registrant\u2019s disclosure controls and procedures and presented in this report our conclusions about the\neffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and\n(d) Disclosed in this report any change in the registrant\u2019s internal control over financial reporting that occurred during the registrant\u2019s most recent\nfiscal quarter (the registrant\u2019s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect,\nthe registrant\u2019s internal control over financial reporting; and"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 78, "chroma:document": "the registrant\u2019s internal control over financial reporting; and\n5. The registrant\u2019s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the\nregistrant\u2019s auditors and the audit committee of the registrant\u2019s board of directors (or persons performing the equivalent functions):\n(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably\nlikely to adversely affect the registrant\u2019s ability to record, process, summarize and report financial information; and\n(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant\u2019s internal control\nover financial reporting.\n \n/s/ Brian T. Olsavsky\nBrian T. Olsavsky\nSenior Vice President and\nChief Financial Officer\n(Principal Financial Officer)\nDate: February 2, 2023"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 79, "chroma:document": "Exhibit 32.1\nCertification Pursuant to 18 U.S.C. Section 1350\nIn connection with the Annual Report of Amazon.com, Inc. (the \u201cCompany\u201d) on Form 10-K for the year ended December 31, 2022, as filed with the\nSecurities and Exchange Commission (the \u201cSEC\u201d) on or about the date hereof (the \u201cReport\u201d), I, Andrew R. Jassy, President and Chief Executive Officer of the\nCompany, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:\n(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and\n(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the\nCompany.\nA signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff\nupon request.\n/s/ Andrew R. Jassy\nAndrew R. Jassy\nPresident and Chief Executive Officer\n(Principal Executive Officer)\nDate: February 2, 2023"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
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{"source": "Dataset-10k/aws-10-k-2023.pdf", "page": 80, "chroma:document": "Exhibit 32.2\nCertification Pursuant to 18 U.S.C. Section 1350\nIn connection with the Annual Report of Amazon.com, Inc. (the \u201cCompany\u201d) on Form 10-K for the year ended December 31, 2022, as filed with the\nSecurities and Exchange Commission (the \u201cSEC\u201d) on or about the date hereof (the \u201cReport\u201d), I, Brian T. Olsavsky, Senior Vice President and Chief Financial\nOfficer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:\n(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and\n(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the\nCompany.\nA signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff\nupon request.\n \n/s/ Brian T. Olsavsky\nBrian T. Olsavsky\nSenior Vice President and\nChief Financial Officer\n(Principal Financial Officer)\nDate: February 2, 2023"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 0, "chroma:document": "UNITED STATES\nSECURITIES AND EXCHANGE COMMISSION\nWASHINGTON, D.C. 20549\nFORM 10-K\nANNUAL REPORT\npursuant to Section 13  or 15 (d) of the\nSecurities Exchange Act of 1934\nFOR THE YEAR ENDED DECEMBER 31, 2023\n1-2360\n(Commission file number)\nINTERNATIONAL BUSINESS MACHINES CORPORATION\n(Exact name of registrant as specified in its charter)\nNew York  \n(State of Incorporation) 13-0871985\n(IRS Employer Identification Number)\nOne New Orchard Road\nArmonk , New York\n(Address of principal executive offices)10504  \n(Zip Code)\n914-499-1900\n(Registrant\u2019s telephone number)\nSecurities registered pursuant to Section 12(b) of the Act:\nTitle of each class Trading Symbol Name of each exchange on which registered\nCapital stock, par value $.20 per share IBM New York Stock Exchange\nNYSE Chicago\n1.125% Notes due 2024 IBM 24A New York Stock Exchange\n2.875% Notes due 2025 IBM 25A New York Stock Exchange\n0.950% Notes due 2025 IBM 25B New York Stock Exchange\n0.875% Notes due 2025 IBM 25C New York Stock Exchange\n0.300% Notes due 2026 IBM 26B New York Stock Exchange\n1.250% Notes due 2027 IBM 27B New York Stock Exchange\n3.375% Notes due 2027 IBM 27F New York Stock Exchange\n0.300% Notes due 2028 IBM 28B New York Stock Exchange\n1.750% Notes due 2028 IBM 28A New York Stock Exchange\n1.500% Notes due 2029 IBM 29 New York Stock Exchange\n0.875% Notes due 2030 IBM 30A New York Stock Exchange\n1.750% Notes due 2031 IBM 31 New York Stock Exchange\n3.625% Notes due 2031 IBM 31B New York Stock Exchange\n0.650% Notes due 2032 IBM 32A New York Stock Exchange\n1.250% Notes due 2034 IBM 34 New York Stock Exchange\n3.750% Notes due 2035 IBM 35 New York Stock Exchange"}


created_at: 2024-09-04 04:52:27
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 0, "chroma:document": "4.875% Notes due 2038 IBM 38 New York Stock Exchange\n1.200% Notes due 2040 IBM 40 New York Stock Exchange\n4.000% Notes due 2043 IBM 43 New York Stock Exchange\n7.00% Debentures due 2025 IBM 25 New York Stock Exchange\n6.22% Debentures due 2027 IBM 27 New York Stock Exchange\n6.50% Debentures due 2028 IBM 28 New York Stock Exchange\n5.875% Debentures due 2032 IBM 32D New York Stock Exchange\n7.00% Debentures due 2045 IBM 45 New York Stock Exchange\n7.125% Debentures due 2096 IBM 96 New York Stock Exchange\nSecurities registered pursuant to Section 12(g) of the Act: None.\nIndicate by check mark if the registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act. Yes \u2612  N o  \u2610\nI n d i c a t e  b y  c h e c k  m a r k  i f  t h e  r e g i s t r a n t  i s  n o t  r e q u i r e d  t o  f i l e  r e p o r t s  p u r s u a n t  t o  S e c t i o n  1 3  o r  S e c t i o n  1 5 ( d )  o f  t h e  A c t .  Y e s  \u2610 No \u2612\nIndicate 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 \nmonths (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 \u2612  N o  \u2610\nIndicate 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"}


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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 0, "chroma:document": "(\u00a7232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes \u2612  N o  \u2610\nIndicate 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 \ncompany. See the definitions of \u201clarge accelerated filer,\u201d \u201caccelerated filer,\u201d \u201csmaller reporting company\u201d and \u201cemerging growth company\u201d in Rule 12b-2 of the Exchange Act.\nLarge accelerated filer  \u2612 Accelerated filer \u2610\nNon-accelerated filer \u2610 Smaller reporting company \u2610 \nEmerging growth company \u2610\nIf 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 \na c c o u n t i n g  s t a n d a r d s  p r o v i d e d  p u r s u a n t  t o  S e c t i o n  1 3 ( a )  o f  t h e  E x c h a n g e  A c t .  \u2610\nI n d i c a t e  b y  c h e c k  m a r k  w h e t h e r  t h e  r e g i s t r a n t  h a s  \ufb01 l e d  a  r e p o r t  o n  a n d  a t t e s t a t i o n  t o  i t s  m a n a g e m e n t \u2019 s  a s s e s s m e n t  o f  t h e  e \ufb00 e c t i v e n e s s  o f  i t s  i n t e r n a l  c o n t r o l  o v e r  \ufb01 n a n c i a l  \nreporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting \ufb01rm that prepared or issued its audit report. \u2612"}


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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 0, "chroma:document": "If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements  of the registrant included in the filing reflect the \ncorrection of an error to previously issued  financial statements. \u2610\nIndicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the \nregistrant\u2019s executive officers during the relevant recovery period pursuant to \u00a7240.10D-1(b). \u2610\nIndicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes \u2610 N o  \u2612\nThe aggregate market value of the voting stock held by non-affiliates of the registrant as of the last business day of the registrant\u2019s most recently completed second fiscal quarter \nwas $121.9 billion .\nThe registrant had 916,744,848  shares of common stock outstanding at  February 9, 2024 .\nDocuments incorporated by reference:\nPortions of IBM\u2019s Annual Report to Stockholders for the year ended  December 31, 2023  are incorporated by reference into Parts I, II and IV of this Form 10-K.\nPortions of IBM\u2019s definitive Proxy Statement to be filed with the Securities and Exchange Commission and delivered to stockholders in connection with the Annual Meeting of \nStockholders to be held April 30, 2024  are incorporated by reference into Part III of this Form 10-K."}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d9ae0-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 1, "chroma:document": "Table of Contents\nPART I 1\nItem 1. Business 1\nItem 1A. Risk Factors 3\nItem 1B. Unresolved Staff Comments 9\nItem 1C. Cybersecurity 9\nItem 2. Properties 11\nItem 3. Legal Proceedings 11\nItem 4. Mine Safety Disclosures 11\nPART II 12\nItem 5. Market for Registrant\u2019s Common Equity, Related Stockholder Matters and Issuer \nPurchases of Equity Securities12\nItem 6. [Reserved] 12\nItem 7. Management\u2019s Discussion and Analysis of Financial Condition and Results of Operations 12\nItem 7A. Quantitative and Qualitative Disclosures About Market Risk 12\nItem 8. Financial Statements and Supplementary Data 12\nItem 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 12\nItem 9A. Controls and Procedures 12\nItem 9B. Other Information 13\nItem 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 13\nPART III 14\nItem 10. Directors, Executive Officers and Corporate Governance 14\nItem 11. Executive Compensation 14\nItem 12. Security Ownership of Certain Beneficial Owners and Management and Related \nStockholder Matters14\nItem 13. Certain Relationships and Related Transactions, and Director Independence 16\nItem 14. Principal Accounting Fees and Services 16\nPART IV 17\nItem 15. Exhibits, Financial Statement Schedules 17\nItem 16. Form 10-K Summary 23\nSIGNATURES\nREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON FINANCIAL \nSTATEMENT SCHEDULE\nSCHEDULE II S-1\ni"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d9b3a-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 2, "chroma:document": "PART I\nItem 1. Business:\nInternational Business Machines Corporation (IBM or the company) was incorporated in the State of New York on \nJune 16, 1911, as the Computing-Tabulating-Recording Co. (C-T-R), a consolidation of the Computing Scale Co. of \nAmerica, the Tabulating Machine Co. and The International Time Recording Co. of New York. Since that time, IBM has \nfocused on the intersection of business insight and technological innovation, and its operations and aims have been \ninternational in nature. This was signaled 100 years ago, in 1924, when C-T-R changed its name to International Business \nMachines Corporation. And it continues today\u2014we create sustained value for clients by helping them leverage the power \nof hybrid cloud and artificial intelligence (AI). Our hybrid cloud platform and AI technology support clients\u2019 digital \ntransformations and helps them reimagine critical workflows, at scale, and modernize applications to increase agility, drive \ninnovation and create operational efficiencies. Our offerings draw from leading IBM capabilities in software, consulting \nservices capability to deliver business outcomes, and deep incumbency in mission-critical infrastructure, all bolstered by \none of the world\u2019s leading research organizations.\nThe following information is included in IBM\u2019s 2023  Annual Report to Stockholders and is incorporated by reference:\nIBM Strategy \u2014pages 11 to 13.\nBusiness Segments and Capabilities\u2014pages 13 to 15.\nHuman Capital\u2014pages 15 to 16.  \nStrategic Partnerships\nWe proactively partner with a broad variety of companies including hyperscalers, service providers, global system \nintegrators, and software and hardware vendors. We work alongside our partners to deliver end-to-end solutions that \naddress our clients\u2019 complex business challenges while accelerating growth. Our strategic partners include: Adobe, \nAmazon Web Services (AWS) , Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, among others. \nCompanies with which we have strategic partnerships in some areas may be competitors in other areas.\nCompetition\nIBM is a globally integrated enterprise that participates in a highly competitive environment. Our competitors vary by \nindustry segment, and range from large multinational enterprises to smaller, more narrowly focused entities. Across our \nbusiness segments, we recognize hundreds of competitors worldwide and as we execute our hybrid cloud and AI strategy, \nwe are regularly exposed to new competitors."}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d9b94-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 2, "chroma:document": "we are regularly exposed to new competitors.\nOur principal methods of competition are: technology innovation; performance; price; quality; brand; our breadth of \ncapabilities, products and services; talent; client relationships and trust; the ability to deliver business value to clients; and \nservice and support. In order to maintain leadership, we optimize our portfolio with organic and inorganic innovations and \neffective resource allocation. These investments not only drive current performance but will extend our innovation \nleadership into the future. \nOur breadth and depth of expertise enables us to take different technologies and bring them together to solve the most \npressing business issues of our clients. We differentiate from other providers by bringing together incumbency with \nenterprises, deep expertise in technology, industries and business processes, a broad go-to-market reach including an \necosystem of partners and alliances, and a strong focus on innovation . All of these attributes position IBM for accelerated \ngrowth now and prepare us for the next set of business opportunities, such as quantum computing .\n1"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d9bee-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 3, "chroma:document": "Overall, the company is the leader or among the leaders in each of our business segments. A summary of the \ncompetitive environment for each business segment is included below:\nSoftware:\nThe depth, breadth, and innovation of our software offerings, coupled with our global reach, deep industry expertise \nand research capabilities help differentiate our offerings from our competitors. Our hybrid cloud and AI platforms  allow \nclients to realize their digital and AI transformations across the applications, data, and environments in which they operate. \nThe principal competitors in this segment include: Alphabet (Google), Amazon, BMC , Broadcom , Informatica, Microsoft,  \nOracle, Palo Alto Networks, Salesforce, SAP and Splunk. We also compete with smaller, niche competitors in specific \ngeographic regions or product segments.\nConsulting:\nConsulting focuses on integrating skills on strategy, experience, technology and operations by domain and industry. \nConsulting competes in a dynamic market including consulting, systems integration, application development, application \nmanagement and business process outsourcing services. Our broad-based competitors include: Accenture, Capgemini, \nIndia-based service providers, management consulting firms, the consulting practices of public accounting firms, \nengineering service providers, and many companies that primarily focus on local markets or niche service areas.\nInfrastructure:\nIBM is well positioned in the growing hybrid cloud infrastructure market , providing on-premises and cloud-based \nserver and storage solutions.  We gain advantage and differentiation through investments in higher-value capabilities, \nincluding security, scalability, and reliability, designed especially for mission-critical and regulated workloads. In addition, \nwe offer a portfolio of life-cycle services for hybrid cloud infrastructure  deployment. Our principal competitors include: \nDell Technologies, Hewlett-Packard Enterprise (HPE), Intel, NetApp and Pure Storage as well as original device \nmanufacturers (ODMs) who provide systems that are re-branded. Further, cloud service providers are leveraging \ninnovation in technology and service delivery to compete with traditional providers and to offer additional routes  to market \nfor server and storage systems. \nFinancing:\nFinancing provides client and commercial financing, facilitating IBM clients\u2019 acquisition of hardware, software and \nservices. Financing\u2019s ability to manage credit and residual value risk generates a competitive advantage for the company. \nThe key competitive factors include: interest rates charged, IT product experience, client service, contract flexibility, ease"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d9cf2-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 3, "chroma:document": "of doing business, global capabilities and residual values. In client and commercial financing, Financing primarily \ncompetes with non-captive financing entities and financial institutions.\nForward-looking and Cautionary Statements\nCertain statements contained in this Form 10-K may constitute \u201cforward-looking statements\u201d within the meaning of \nthe Private Securities Litigation Reform Act of 1995 (\u201cReform Act\u201d). Forward-looking statements are based on the \ncompany\u2019s current assumptions regarding future business and financial performance. These statements by their nature \naddress matters that are uncertain to different degrees. The company may also make forward-looking statements in other \nreports filed with the Securities and Exchange Commission (\u201cSEC\u201d), in materials delivered to stockholders and in press \nreleases. In addition, the company\u2019s representatives may from time to time make oral forward-looking statements. \nForward-looking statements provide current expectations of future events based on certain assumptions and include any \nstatement that does not directly relate to any historical or current fact. Words such as \u201canticipates,\u201d \u201cbelieves,\u201d \u201cexpects,\u201d \n\u201cestimates,\u201d \u201cintends,\u201d \u201cplans,\u201d \u201cprojects,\u201d and similar expressions, may identify such forward-looking statements. Any \nforward-looking statement in this Form 10-K speaks only as of the date on which it is made. Except as required by law, the \ncompany assumes no obligation to update or revise any forward-looking statements. In accordance with the Reform Act, \nset forth under Item 1A. \u201cRisk Factors\u201d on pages 3 to 9 are cautionary statements that accompany those forward-looking \nstatements. Readers should carefully review such cautionary statements as they identify certain  important factors that \ncould cause actual results to differ materially from those in the forward-looking statements and from historical trends. \nThose cautionary statements are not exclusive and are in addition to other factors discussed elsewhere in this Form 10-K, in \nthe company\u2019s filings with the SEC or in materials incorporated therein by reference.\n2"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d9d4c-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 4, "chroma:document": "The following information is included in IBM\u2019s 2023  Annual Report to Stockholders and is incorporated herein by \nreference:\nSegment information and revenue by classes of similar products or services\u2014pages 66 to 70.\nFinancial information regarding environmental activities\u2014page 94.\nThe number of persons employed by the registrant\u2014page 15.\nThe management discussion overview\u2014pages 8 to 10.\nWebsite information and company reporting\u2014page 123.\nInformation About Our Executive Officers (at February 26, 2024 ):\nAge Officer since\nArvind Krishna, Chairman of the Board and Chief Executive Officer (1)61 2020\nMichelle H. Browdy, Senior Vice President, Legal and Regulatory Affairs, and General Counsel 59 2015\nGary D. Cohn, Vice Chairman 63 2021\nNicolas A. Fehring, Vice President and Controller 45 2023\nJames J. Kavanaugh, Senior Vice President and Chief Financial Officer, Finance and Operations 57 2008\nNickle J. LaMoreaux, Senior Vice President and Chief Human Resources Officer 44 2020\nRobert D. Thomas, Senior Vice President, Software and Chief Commercial Officer 49 2023\n(1) Member of the Board of Directors.\nAll executive officers are elected by the Board of Directors annually as provided in the Company\u2019s By-laws. Each \nexecutive officer named above, with the exception of Gary D. Cohn, has been an executive of IBM or its subsidiaries \nduring the past five years. Mr. Cohn previously served as Assistant to the President for Economic Policy and Director of \nthe National Economic Council from January 2017 until April 2018. Before serving in the White House, Mr. Cohn was \nPresident and Chief Operating Officer of The Goldman Sachs Group, Inc. from 2006-2016.\nItem 1A. Risk Factors:\nRisks Related to Our Business\nDownturn in Economic Environment and Client Spending Budgets Could Impact the Company\u2019s Business:  If overall \ndemand for IBM\u2019s products and solutions decreases, whether due to general economic conditions, or a shift in client \nbuying patterns, the company\u2019s revenue and profit could be impacted.\nFailure of Innovation Initiatives Could Impact the Long-Term Success of the Company: IBM has moved into areas,"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d9db0-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 4, "chroma:document": "including those that incorporate or utilize hybrid cloud, AI (including generative AI), quantum and other disruptive \ntechnologies, in which it can differentiate itself through responsible innovation, by leveraging its investments in R&D and \nattracting a successful developer ecosystem. If IBM is unable to continue its cutting-edge innovation in a highly \ncompetitive and rapidly evolving environment or is unable to commercialize such innovations, expand and scale them with \nsufficient speed and versatility or is unable to attract a successful developer ecosystem, the company could fail in its \nongoing efforts to maintain and increase its market share and its profit margins.\nDamage to IBM\u2019s Reputation Could Impact the Company\u2019s Business:  IBM has one of the strongest brand names in the \nworld, and its brand and overall reputation could be negatively impacted by many factors, including if the company does \nnot continue to be recognized for its industry leading technology and solutions and as a hybrid cloud and AI leader. IBM\u2019s \nreputation is potentially susceptible to damage by events such as significant disputes with clients, product defects, internal \ncontrol deficiencies, delivery failures, cybersecurity incidents, government investigations or legal proceedings or actions of \ncurrent or former clients, directors, employees, competitors, vendors, alliance partners or joint venture partners. If the \ncompany\u2019s brand image is tarnished by negative perceptions, its ability to attract and retain customers, talent and \necosystem partners could be impacted.\n3"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d9e0a-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 5, "chroma:document": "Risks from Investing in Growth Opportunities Could Impact the Company\u2019s Business: The company continues to \ninvest significantly in key strategic areas to drive revenue growth and market share gains. Client adoption rates and viable \neconomic models are less certain in the high-value, highly competitive, and rapidly-growing segments. Additionally, \nemerging business and delivery models may unfavorably impact demand and profitability for our other products or \nservices. If the company does not adequately and timely anticipate and respond to changes in customer and market \npreferences, competitive actions, disruptive technologies, emerging business models and ecosystems, the client demand for \nour products or services may decline or IBM\u2019s costs may increase.\nIBM\u2019s Intellectual Property Portfolio May Not Prevent Competitive Offerings, and IBM May Not Be Able to Obtain \nNecessary Licenses: The company\u2019s patents and other intellectual property may not prevent competitors from \nindependently developing products and services similar to or duplicative to the company\u2019s, nor can there be any assurance \nthat the resources invested by the company to protect its intellectual property will be sufficient or that the company\u2019s \nintellectual property portfolio will adequately deter misappropriation or improper use of the company\u2019s technology. In \naddition, the company may be the target of aggressive and opportunistic enforcement of patents by third parties, including \nnon-practicing entities. Also, there can be no assurances that IBM will be able to obtain from third parties the licenses it \nneeds in the future. The company\u2019s ability to protect its intellectual property could also be impacted by a lack of effective \nlegal protections as well as changes to existing laws, legal principles and regulations governing intellectual property, \nincluding the ownership and protection of patents.\nCertain of the company\u2019s offerings incorporate or utilize open source and other third-party software licensed with \nlimited or no warranties, indemnification , or other contractual protections for IBM. Further, if open source code that IBM \nutilizes is no longer maintained, developed or enhanced by the relevant community of independent open source software \nprogrammers, most of whom we do not employ, we may be unable to develop new technologies, adequately enhance our \nexisting technologies or meet customer requirements for innovation, quality and price. \nRisks to the Company from Acquisitions, Alliances and Dispositions Include Integration Challenges, Failure to \nAchieve Objectives, the Assumption of Liabilities and Higher Debt Levels:  The company has made and expects to continue"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d9e6e-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 5, "chroma:document": "to make acquisitions, alliances and dispositions. Such transactions present significant challenges and risks and there can be \nno assurances that the company will manage such transactions successfully or that strategic opportunities will be available \nto the company on acceptable terms or at all. The related risks include the company failing to achieve strategic objectives, \nanticipated revenue improvements and cost savings, the failure to retain key strategic relationships of acquired companies, \nthe failure to retain key personnel and the assumption of liabilities related to litigation or other legal proceedings involving \nthe businesses in such transactions, as well as the failure to close planned transactions. Such transactions may require the \ncompany to secure financing and any significant disruption or turmoil in the capital markets could have an adverse effect \non IBM\u2019s ability to access the capital markets at favorable terms. From time to time, the company disposes or attempts to \ndispose of assets that are no longer central to its strategic objectives. Any such disposition or attempted disposition is \nsubject to risks, including risks related to the terms and timing of such disposition, risks related to obtaining necessary \ngovernmental or regulatory approvals and risks related to retained liabilities not subject to the company\u2019s control.\nThe Company\u2019s Financial Results for Particular Periods Are Difficult to Predict:  IBM\u2019s revenues and profitability are \naffected by such factors as the introduction of new products and services, the ability to compete effectively in increasingly \ncompetitive marketplaces, the length of the sales cycles and the seasonality of technology purchases. In addition, certain of \nthe company\u2019s growth areas involve new products, new customers, new and evolving competitors, and new markets, all of \nwhich contribute to the difficulty of predicting the company\u2019s financial results. The company\u2019s  financial results may also \nbe impacted by the structure of products and services contracts and the nature of its customers\u2019 businesses; for example, \ncertain of the company\u2019s services contracts with commercial customers in regulated industries are subject to periodic \nreview by regulators with respect to controls and processes. Further, general economic conditions, including sudden shifts \nin regional or global economic activity may impact the company\u2019s financial results in any particular period. As a result of \nthe above-mentioned factors, the company\u2019s financial results are difficult to predict. Historically, the company has had \nlower revenue in the first quarter than in the immediately preceding fourth quarter. In addition, the high volume of products"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d9ec8-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 5, "chroma:document": "typically ordered at the end of each quarter, especially at the end of the fourth quarter, make financial results for a given \nperiod difficult to predict.\nDue to the Company\u2019s Global Presence, Its Business and Operations Could Be Impacted by Local Legal, Economic, \nPolitical, Health and Other Conditions:  The company is a globally integrated entity, operating in over 175 countries  \nworldwide and deriving about sixty percent  of its revenues from sales outside the United States. Changes in the laws or \npolicies of the countries in which the company operates, or inadequate development or enforcement of such laws or \npolicies, could affect the company\u2019s business and the company\u2019s overall results of operations. Further, the company may \n4"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d9f22-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 6, "chroma:document": "be impacted directly or indirectly by the development and enforcement of laws and regulations in the U.S. and globally that \nare specifically targeted at the technology industry. The company\u2019s results of operations also could be affected by \neconomic and political changes  in those countries and by macroeconomic changes, including recessions, inflation, currency \nfluctuations between the U.S. dollar and non-U.S. currencies and adverse changes in trade relationships amongst those \ncountries. Further, as the company expands its customer base and the scope of its offerings, both within the U.S. and \nglobally, it may be impacted by additional regulatory or other risks, including, compliance with U.S. and foreign data \nprivacy requirements, AI regulations, data localization requirements, labor relations laws, enforcement of IP protection \nlaws, laws relating to anti-corruption, anti-competition regulations, and import, export and trade restrictions. Further, \ninternational trade disputes could create uncertainty. Tariffs and international trade sanctions resulting from these disputes \ncould affect the company\u2019s ability to move goods and services across borders, or could impose added costs to those \nactivities. Measures taken to date by the company to mitigate these impacts could be made less effective should trade \nsanctions or tariffs change. In addition, any widespread outbreak of an illness, pandemic or other local or global health \nissue, natural disasters, climate change impacts, or uncertain political climates, international hostilities, or any terrorist \nactivities, could adversely affect customer demand, the company\u2019s operations and supply chain, and its ability to source \nand deliver products and services to its customers. \nThe Company May Not Meet Its Growth and Productivity Objectives:  On an ongoing basis, IBM seeks to drive greater \nagility, productivity, flexibility and cost savings by continuously transforming with the use of automation, AI, agile \nprocesses and changes to the ways of working, while also enabling the scaling of resources, offerings and investments \nthrough the company\u2019s globally integrated model across both emerging and more established markets. These various \ninitiatives may not yield their intended gains in speed, quality, productivity and enablement of rapid scaling, which may \nimpact the company\u2019s competitiveness and its ability to meet its growth and productivity objectives.\nIneffective Internal Controls Could Impact the Company\u2019s Business and Operating Results:  The company\u2019s internal"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d9f7c-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 6, "chroma:document": "control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the \npossibility of human error, failure or interruption of information technology systems, the circumvention or overriding of \ncontrols, or fraud. Even effective internal controls can provide only reasonable assurance with respect to the preparation \nand fair presentation of financial statements. If the company fails to maintain the adequacy of its internal controls, \nincluding any failure to implement required new or improved controls, or if the company experiences difficulties in their \nimplementation, the company\u2019s business and operating results could be harmed and the company could fail to meet its \nfinancial reporting obligations.\nThe Company\u2019s Use of Accounting Estimates Involves Judgment and Could Impact the Company\u2019s Financial Results:  \nThe application of accounting principles generally accepted in the U.S. (GAAP) requires the company to make estimates \nand assumptions about certain items and future events that directly affect its reported financial condition. The company\u2019s \nmost critical accounting estimates are described in the Management Discussion in IBM\u2019s 2023 Annual Report to \nStockholders, under \u201cCritical Accounting Estimates.\u201d In addition, as discussed in note R, \u201cCommitments & \nContingencies,\u201d in IBM\u2019s 2023 Annual Report to Stockholders, the company makes certain estimates including decisions \nrelated to legal proceedings and reserves. These estimates and assumptions involve the use of judgment. As a result, actual \nfinancial results may differ.\nThe Company\u2019s Goodwill or Amortizable Intangible Assets May Become Impaired: The company acquires other \ncompanies, including the intangible assets of those companies. The company may not realize all the economic benefit from \nthose acquisitions, which could cause an impairment of goodwill or intangible assets. If our goodwill or net intangible \nassets become impaired, we may be required to record a charge to the Consolidated Income Statement.\nThe Company Depends on Skilled Employees and Could Be Impacted by a Shortage of Critical Skills: Much of the \nfuture success of the company depends on the continued service, availability and integrity of skilled employees, including \ntechnical, marketing and staff resources. Skilled and experienced personnel in the areas where the company competes are \nin high demand, and competition for their talents is intense. Changing demographics and labor work force trends may \nresult in a shortage of or insufficient knowledge and skills. In addition, as global opportunities and industry demand shifts,"}


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topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548d9ff4-6a79-11ef-8942-0242ac1c000c
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{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 6, "chroma:document": "realignment, training and scaling of skilled resources may not be sufficiently rapid or successful. Further, many of IBM\u2019s \nkey employees receive a total compensation package that includes equity awards. Any new regulations, volatility in the \nstock market and other factors could diminish the company\u2019s use or the value of the company\u2019s equity awards, putting the \ncompany at a competitive disadvantage.\nThe Company\u2019s Business Could Be Impacted by Its Relationships with Critical Suppliers:  IBM\u2019s business employs a \nwide variety of components (hardware and software), supplies, services and raw materials from a substantial number of \n5"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548da058-6a79-11ef-8942-0242ac1c000c
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metadata:
{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 7, "chroma:document": "suppliers around the world. Certain of the company\u2019s businesses rely on a single or a limited number of suppliers, \nincluding for server processor technology for certain semiconductors. Changes in the business condition (financial or \notherwise) of these suppliers  could subject the company to losses and affect its ability to bring products to market. Further, \nthe failure of the company\u2019s suppliers to deliver components, supplies, services and raw materials in sufficient quantities, \nin a timely or secure manner, and in compliance with all applicable laws and regulations could adversely affect the \ncompany\u2019s business. In addition, any defective components, supplies or materials, or inadequate services received from \nsuppliers could reduce the reliability of the company\u2019s products and services and harm the company\u2019s reputation.\nProduct and Service Quality Issues Could Impact the Company\u2019s Business and Operating Results: The company has \nrigorous quality control standards and processes intended to prevent, detect and correct errors, malfunctions and other \ndefects in its products and services. If errors, malfunctions, defects or disruptions in service are experienced by customers \nor in the company\u2019s operations there could be negative consequences that could impact customers\u2019 business operations and \nharm the company\u2019s business\u2019s operating results.\nThe Company Could Be Impacted by Its Business with Government Clients: The company\u2019s customers include \nnumerous governmental entities within and outside the U.S., including the U.S. Federal Government and state and local \nentities. Some of the company\u2019s agreements with these customers may be subject to periodic funding approval. Funding \nreductions or delays could adversely impact public sector demand for our products and services. Also, some agreements \nmay contain provisions allowing the customer to terminate without cause and providing for higher liability limits for \ncertain losses. In addition, the company could be suspended or debarred as a governmental contractor and could incur civil \nand criminal fines and penalties, which could negatively impact the company\u2019s results of operations, financial results and \nreputation.\nThe Company\u2019s Reliance on Third-Party Distribution Channels and Ecosystems Could Impact Its Business:  The \ncompany offers its products directly and through a variety of third -party distributors, resellers, independent software \nvendors, independent service providers, and other ecosystem partners . Changes in the business condition (financial or \notherwise) of these ecosystem partners could subject the company to losses and affect its ability to bring its products to"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548da0b2-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 7, "chroma:document": "market. As the company moves into new areas, ecosystem partners may be unable to keep up with changes in technology \nand offerings, and the company may be unable to recruit and enable appropriate partners to achieve anticipated ecosystem \ngrowth objectives. In addition, the failure of ecosystem partners to comply with all applicable laws and regulations may \nprevent the company from working with them and could subject the company to losses and affect its ability to bring \nproducts to market.\nRisks Related to Cybersecurity and Data Privacy\nCybersecurity and Privacy Considerations Could Impact the Company\u2019s Business:  There are numerous and evolving \nrisks to cybersecurity and privacy, including risks originating from intentional acts of criminal hackers, hacktivists, nation \nstates and competitors; from intentional and unintentional acts or omissions of customers, contractors, business partners, \nvendors, employees and other third parties; and from errors in processes or technologies, as well as the risks associated \nwith an increase in the number of customers, contractors, business partners, vendors, employees and other third parties \nworking remotely. Computer hackers and others routinely attack the security of technology products, services, systems and \nnetworks using a wide variety of methods, including ransomware or other malicious software and attempts to exploit \nvulnerabilities in hardware, software, and infrastructure. Attacks also include social engineering and cyber extortion to \ninduce customers, contractors, business partners, vendors, employees and other third parties to disclose information, \ntransfer funds, or unwittingly provide access to systems or data. The company is at risk of security breaches not only of our \nown products, services, systems and networks, but also those of customers, contractors, business partners, vendors, \nemployees and other third parties, particularly as all parties increasingly digitize their operations. Cyber threats are \ncontinually evolving, including with the increased use of AI, making it difficult to defend against such threats and \nvulnerabilities that can persist undetected over extended periods of time. \nThe company\u2019s products, services, systems and networks, including cloud-based systems and systems and \ntechnologies that the company maintains on behalf of its customers, are used in critical company, customer or third-party \noperations, and involve the storage, processing and transmission of sensitive data, including valuable intellectual property, \nother proprietary or confidential data, regulated data, and personal information of employees, customers and others. These"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548da10c-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 7, "chroma:document": "products, services, systems and networks are also used by customers in heavily regulated industries, including those in the \nfinancial services, healthcare, critical infrastructure and government sectors.\n6"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548da170-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 8, "chroma:document": "While the company continues to monitor for, identify, investigate, respond to and remediate a wide range of \ncybersecurity events, there have not been cybersecurity incidents or vulnerabilities that have had a material adverse effect \non the company, though there is no assurance that there will not be cybersecurity incidents or vulnerabilities that will have \na material adverse effect in the future.\n The company regularly addresses cybersecurity attacks and vulnerabilities. Cybersecurity attacks or other security \nincidents, including industry-wide incidents such as MOVEit , have or could result in, for example, one or more of the \nfollowing: unauthorized access to, disclosure, modification, misuse, loss, or destruction of company, customer, or other \nthird-party data or systems; theft or import or export of sensitive, regulated, or confidential data including personal \ninformation and intellectual property, including key innovations in AI, quantum, or other disruptive technologies; the loss \nof access to critical data or systems through ransomware, crypto mining, destructive attacks or other means; and business \ndelays, service or system disruptions or denials of service. \nIn the event of such actions, the company, its customers and other third parties could be exposed to liability, litigation, \nand regulatory or other government action, including debarment, as well as the loss of existing or potential customers, \ndamage to brand and reputation, damage to our competitive position, and other financial loss. In addition, the cost and \noperational consequences of responding to cybersecurity incidents and implementing remediation measures could be \nsignificant. In the company\u2019s industry, security vulnerabilities are increasingly discovered, publicized and exploited across \na broad range of hardware, software or other infrastructure, elevating the risk of attacks and the potential cost of response \nand remediation for the company and its customers. In addition, the fast-paced, evolving, pervasive, and sophisticated \nnature of certain cyber threats and vulnerabilities, as well as the scale and complexity of the business and infrastructure, \nmake it possible that certain threats or vulnerabilities will be undetected or unmitigated in time to prevent or minimize the \nimpact of an attack on the company or its customers. \nCybersecurity risk to the company and its customers also depends on factors such as the actions, practices and \ninvestments of customers, contractors, business partners, vendors, the open source community and other third parties,"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548da1ca-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 8, "chroma:document": "including, for example, providing and implementing patches to address vulnerabilities. Cybersecurity attacks or other \ncatastrophic events resulting in disruptions to or failures in power, information technology, communication systems or \nother critical infrastructure could result in interruptions or delays to company, customer, or other third-party operations or \nservices, financial loss, injury or death to persons or property, potential liability, and damage to brand and reputation. \nAlthough the company continuously takes significant steps to mitigate cybersecurity risk across a range of functions, such \nmeasures can never eliminate the risk entirely or provide absolute security. \nAs a global enterprise, the regulatory environment with regard to cybersecurity, privacy, AI and data protection issues \nis increasingly complex and will continue to impact the company\u2019s business, including through increased risk, increased \ncosts, and expanded or otherwise altered compliance obligations, including with respect to the increased regulatory activity \naround the security of critical infrastructure, IoT devices, customer industries (e.g., financial services) and various customer \nand government supply chain security programs. As the reliance on data grows for the company and our clients, the \npotential impact of regulations on the company\u2019s business, risks, and reputation will grow accordingly. The enactment and \nexpansion of cybersecurity, AI, data protection and privacy laws, regulations and standards around the globe will continue \nto result in increased compliance costs, including due to an increased focus on international data transfer mechanisms and \ndata location; increased cybersecurity requirements and reporting obligations; the lack of harmonization of such laws and \nregulations; the increase in associated litigation and enforcement activity by governments and private parties; the potential \nfor damages, fines and penalties and debarment; and the potential regulation of new and emerging technologies. Any \nadditional costs and penalties associated with increased compliance, enforcement, and risk reduction could make certain \nofferings less profitable or increase the difficulty of bringing certain offerings to market or maintaining certain offerings.\nRisks Related to Laws and Regulations\nThe Company Could Incur Substantial Costs Related to Climate Change and Other Environmental Matters:  IBM, like \nother companies, is subject to potential climate-related risks and costs such as those resulting from increased severe \nweather events, prolonged changes in temperature, new regulations affecting hardware products and data centers, carbon \ntaxes, and increased environmental disclosures requested or required by clients, regulators and others. The company is also"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548da224-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 8, "chroma:document": "subject to various federal, state, local and foreign laws and regulations concerning the discharge of materials into the \nenvironment or otherwise related to environmental protection, including the U.S. Superfund law. The company could incur \nsubstantial costs, including cleanup costs, fines and civil or criminal sanctions, as well as third-party claims for property \ndamage or personal injury, if it were to violate or become liable under environmental laws and regulations. We do not \n7"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548da288-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 9, "chroma:document": "expect climate change or compliance with environmental laws and regulations focused on climate change to have a \ndisproportionate effect on the company or its financial position, results of operations and competitive position.\nTax Matters Could Impact the Company\u2019s Results of Operations and Financial Condition:  The company is subject to \nincome taxes in both the United States and numerous foreign jurisdictions. IBM\u2019s provision for income taxes and cash tax \nliability in the future could be adversely affected by numerous factors including, but not limited to, income before taxes \nbeing lower than anticipated in countries with lower statutory tax rates and higher than anticipated in countries with higher \nstatutory tax rates, changes in the valuation of deferred tax assets and liabilities, and changes in tax laws, regulations, \naccounting principles or interpretations thereof, which could adversely impact the company\u2019s results of operations and \nfinancial condition in future periods. The Organization for Economic Cooperation and Development (OECD) is issuing \nguidelines that are different, in some respects, than long-standing international tax principles. As countries unilaterally \namend their tax laws to adopt certain parts of the OECD guidelines, this may increase tax uncertainty and may adversely \nimpact the company\u2019s income taxes. Local country, state, provincial or municipal taxation may also be subject to review \nand potential override by regional, federal, national or similar forms of government. In addition, IBM is subject to the \ncontinuous examination of its income tax returns by the United States Internal Revenue Service (IRS) and other tax \nauthorities around the world. The company regularly assesses the likelihood of adverse outcomes resulting from these \nexaminations to determine the adequacy of its provision for income taxes. There can be no assurance that the outcomes \nfrom these examinations will not have an adverse effect on the company\u2019s provision for income taxes and cash tax liability.\nThe Company Is Subject to Legal Proceedings and Investigatory Risks: As a company with a substantial employee \npopulation and with clients in more than 175 countries , IBM is or may become involved as a party and/or may be subject to \na variety of claims, demands, suits, investigations, tax matters and other proceedings that arise from time to time in the \nordinary course of its business. The risks associated with such legal proceedings are described in more detail in note R, \n\u201cCommitments & Contingencies,\u201d in IBM\u2019s 2023 Annual Report to Stockholders. The company believes it has adopted"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548da2e2-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 9, "chroma:document": "appropriate risk management and compliance programs. Legal and compliance risks, however, will continue to exist and \nadditional legal proceedings and other contingencies, the outcome of which cannot be predicted with certainty, may arise \nfrom time to time.\nRisks Related to Financing and Capital Markets Activities\nThe Company\u2019s Results of Operations and Financial Condition Could Be Negatively Impacted by Its U.S. and non-\nU.S. Pension Plans:  Adverse financial market conditions and volatility in the credit markets may have an unfavorable \nimpact on the value of the company\u2019s pension trust assets and its future estimated pension liabilities . As a result, the \ncompany\u2019s financial results in any period could be negatively impacted. In addition, in a period of an extended financial \nmarket downturn, the company could be required to provide incremental pension plan funding with resulting liquidity risk \nwhich could negatively impact the company\u2019s financial flexibility. Further, the company\u2019s results could be negatively \nimpacted by premiums for mandatory pension insolvency insurance coverage outside the United States. Premium increases \ncould be significant due to the level of insolvencies of unrelated companies in the country at issue. IBM\u2019s 2023 Annual \nReport to Stockholders includes information about potential impacts from pension funding and the use of certain \nassumptions regarding pension matters.\nThe Company Is Exposed to Currency and Financing Risks That Could Impact Its Revenue and Business: The \ncompany derives a significant percentage of its revenues and costs from its affiliates operating in local currency \nenvironments, and those results are affected by changes in the relative values of non-U.S. currencies and the U.S. dollar, as \nwell as sudden shifts in regional or global economic activity. Further, inherent in the company\u2019s financing business are \nrisks related to the concentration of credit, client creditworthiness, interest rate and currency fluctuations on the associated \ndebt and liabilities  and the determination of residual values . The company employs a number of strategies to manage these \nrisks, including the use of derivative financial instruments, which involve the risk of non-performance by the counterparty. \nIn addition, there can be no assurance that the company\u2019s efforts to manage its currency and financing risks will be \nsuccessful.\nThe Company\u2019s Financial Performance Could Be Impacted by Changes in Market Liquidity Conditions and by \nCustomer Credit Risk on Receivables:  The company\u2019s financial performance is exposed to a wide variety of industry sector"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548da33c-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 9, "chroma:document": "dynamics worldwide, including sudden shifts in regional or global economic activity. The company\u2019s earnings and cash \nflows, as well as its access to funding, could be negatively impacted by changes in market liquidity conditions. IBM\u2019s 2023 \nAnnual Report to Stockholders includes information about the company\u2019s liquidity position. The company\u2019s client base \nincludes many enterprises worldwide, from small and medium businesses to the world\u2019s largest organizations and \ngovernments, with a significant portion of the company\u2019s revenue coming from global clients across many sectors. Most of \n8"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548da396-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 10, "chroma:document": "the company\u2019s sales are on an open credit basis, and the company performs ongoing credit evaluations of its clients\u2019 \nfinancial conditions. If the company becomes aware of information related to the creditworthiness of a major customer, or \nif future actual default rates on receivables in general differ from those currently anticipated, the company may have to \nadjust its allowance for credit losses, which could affect the company\u2019s consolidated net income in the period the \nadjustments are made.\nRisks Related to the Spin-Off of Kyndryl Holdings, Inc.\nIf the Kyndryl Holdings, Inc. Spin-off Fails to Qualify for Tax-free Treatment, It Could Result in Substantial Tax \nLiability for the Company and Its Stockholders:  In connection with the spin-off of Kyndryl Holdings, Inc. , the company \nobtained a private letter ruling from the IRS and an opinion from its tax advisor, in each case to the effect that, for U.S. \nfederal income tax purposes, the spin-off will qualify as a tax-free reorganization under sections 368(a)(1)(D) and 355 of \nthe Internal Revenue Code of 1986, as amended. The IRS private letter ruling and the opinion rely on certain facts, \nassumptions, representations and undertakings from Kyndryl Holdings, Inc. and the company regarding the past and future \nconduct of the companies\u2019 respective businesses and other matters. If any of these facts, assumptions, representations, or \nundertakings are incorrect or not satisfied, the conclusions reached in the IRS private letter ruling and/or the opinion could \nbe jeopardized. If the spin-off is determined to be taxable for U.S. federal income tax purposes, the company\u2019s \nstockholders that are subject to U.S. federal income tax and the company could incur significant U.S. federal income tax \nliabilities.\nRisks Related to Ownership of IBM Securities\nRisk Factors Related to IBM Securities:  The company and its subsidiaries issue debt securities in the worldwide capital \nmarkets from time to time, with a variety of different maturities and in different currencies. The value of the company\u2019s \ndebt securities fluctuates based on many factors, including the methods employed for calculating principal and interest, the \nmaturity of the securities, the aggregate principal amount of securities outstanding, the redemption features for the"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548da3f0-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 10, "chroma:document": "securities, the level, direction and volatility of interest rates, changes in exchange rates, exchange controls, governmental \nand stock exchange regulations and other factors over which the company has little or no control. The company\u2019s ability to \npay interest and repay the principal for its debt securities is dependent upon its ability to manage its business operations, as \nwell as the other risks described under this Item 1A. entitled \u201cRisk Factors.\u201d There can be no assurance that the company \nwill be able to manage any of these risks successfully.\nThe company also issues its common stock from time to time in connection with various compensation plans, \ncontributions to its pension plan and certain acquisitions. The market price of IBM common stock is subject to significant \nvolatility, due to other factors described under this Item 1A. entitled \u201cRisk Factors,\u201d as well as economic and geopolitical \nconditions generally, trading volumes, speculation by the press or investment community about the company\u2019s financial \ncondition, and other factors, many of which are beyond the company\u2019s control. Since the market price of IBM\u2019s common \nstock fluctuates significantly, stockholders may not be able to sell the company\u2019s stock at attractive prices.\nIn addition, changes by any rating agency to the company\u2019s outlook or credit ratings can negatively impact the value \nand liquidity of both the company\u2019s debt and equity securities. The company does not make a market in either its debt or \nequity securities and cannot provide any assurances with respect to the liquidity or value of such securities.  \nItem 1B. Unresolved Staff Comments:\nNot applicable.\nItem 1 C. Cybersecurity :\nRisk Management and Strategy\nCybersecurity is a critical part of risk management at IBM and is integrated with the company\u2019s overall enterprise risk \nmanagement framework. The Board of Directors and the Audit Committee of the Board are responsible for overseeing \nmanagement\u2019s execution of cybersecurity risk management and for assessing IBM\u2019s approach to risk management. Senior \nmanagement is responsible for assessing and managing IBM\u2019s exposure to cybersecurity risks on an ongoing basis.\nFrom an enterprise perspective, we implement a multi-faceted risk management approach based on the National \nInstitute of Standards and Technology Cybersecurity Framework. We have established policies and procedures that provide \n9"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548da454-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 11, "chroma:document": "the foundation upon which IBM\u2019s infrastructure and data are managed. We regularly assess and adjust our technical \ncontrols and methods to identify and mitigate emerging cybersecurity risks. We use a layered approach with overlapping \ncontrols to defend against cybersecurity attacks and threats on IBM networks, end-user devices, servers, applications, data, \nand cloud solutions. \nWe draw heavily on our own commercial security solutions and services to manage and mitigate cybersecurity risks. \nIBM maintains a Security Operations Center (\u201cSOC\u201d) that monitors for threats to IBM\u2019s networks and systems, utilizing \nthreat intelligence provided by a range of sources, including the IBM Security X-Force Exchange platform, which \nmaintains one of the largest compilations of threat intelligence in the world. We also rely on tools licensed from third party \nsecurity vendors to monitor and manage cybersecurity risks. We periodically engage third parties to supplement and review \nour cybersecurity practices and provide relevant certifications.\nWe have a global incident response process, managed by IBM\u2019s Computer Security Incident Response Team \n(\u201cCSIRT\u201d), that relies primarily on internal expertise to respond to cybersecurity threats and attacks. We utilize a \ncombination of online training, educational tools, videos and other awareness initiatives to foster a culture of security \nawareness and responsibility among our workforce, including responsibility for reporting suspicious activity.\nIBM has a third party supplier risk management program to oversee and identify risks from cybersecurity threats \nassociated with its use of third party service providers and vendors. Risks are assessed and prioritized based, among other \nthings, on the type of offering/engagement, supplier assessments, threat intelligence, and industry practices. \nAs discussed in greater detail in Item 1A., \"Risk Factors,\" the company faces numerous and evolving cybersecurity \nthreats, including risks originating from intentional acts of criminal hackers, hacktivists, nation states and competitors; \nfrom  intentional and unintentional acts or omissions of customers , contractors, business partners, vendors, employees and \nother third parties; and from errors in processes or technologies, as well as the risks associated with an increase in the \nnumber of customers, contractors, business partners, vendors, employees and other third parties working remotely. While \nthe company continues to monitor for, identify, investigate, respond to and remediate cybersecurity risks, including \nincidents and vulnerabilities, there have not been any that have had a material adverse effect on the company, though there"}


created_at: 2024-09-04 04:52:27
topic: persistent://default/default/ef30aab7-9396-4960-bd48-eb7ba06916f0
id: 548da4ae-6a79-11ef-8942-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "Dataset-10k/IBM-10-k-2023.pdf", "page": 11, "chroma:document": "is no assurance that there will not be cybersecurity risks that will have a material adverse effect in the future.\nGovernance\nIBM\u2019s Enterprise & Technology Security (\u201cE&TS\u201d)  organization has oversight responsibility for the security of both \nIBM\u2019s internal systems and external offerings and works across all of the organizations within the company to protect \nIBM, its brand, and its clients against cybersecurity risks. E&TS also addresses cybersecurity risks associated with third \nparty suppliers. For these purposes, E&TS includes a dedicated Chief Information Security Officer (\u201cCISO\u201d) whose team \nis responsible for leading enterprise-wide information security strategy, policy, standards, architecture, and processes for \nIBM\u2019s internal systems. The CISO manages the CSIRT. The CISO also manages the Product Security Incident Response \nTeam (\u201cPSIRT\u201d), which focuses on product vulnerabilities potentially affecting the security of offerings sold to customers. \nIBM also has Business Information Security Officers (\u201cBISO\u201d) who coordinate with the Office of the CISO on security \nissues specific to particular business segments.\nThe CSIRT team, together with the Office of the Chief Information Officer (\u201cCIO\u201d), Cyber Legal, Corporate Security, \nand BISOs, engages in on-going reviews of incidents, threat intelligence, detections, and vulnerabilities, including to assess \nclient and regulatory impact. Events of interest are promptly reported to the Senior Vice President (\u201cSVP\u201d) for Legal & \nRegulatory Affairs and General Counsel (\u201cGC\u201d) and the SVP overseeing cybersecurity (\u201cSVP Sponsor\u201d).\nIncidents are delegated to an appropriate incident response team for assessment, investigation, and remediation. \nDepending on the nature of the matter, the incident response team may include individuals from E&TS, the Office of the \nCISO, the Office of the CIO, Cyber Legal, Business Units, the Chief Privacy Office, Human Resources, Procurement, \nFinance and Operations, and Corporate Security. The incident response teams advise and consult with the GC and the SVP \nSponsor, as appropriate. \nThe Cybersecurity Advisory Committee (\u201cCAC\u201d) meets regularly and is responsible for overseeing management of the \nCompany\u2019s cybersecurity risk. The CAC is composed of, among others, SVPs from the major business units, the SVP \nSponsor, and the GC. The CAC is responsible for, among other things, setting the Company\u2019s governance structure for"}


