2018 Q2 Form 10-Q Financial Statement

#000101872418000108 Filed on July 27, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2
Revenue $52.89B $37.96B
YoY Change 39.34% 24.84%
Cost Of Revenue $30.63B $23.45B
YoY Change 30.62% 22.27%
Gross Profit $22.25B $14.50B
YoY Change 53.43% 29.22%
Gross Profit Margin 42.08% 38.21%
Selling, General & Admin $4.012B $3.103B
YoY Change 29.29% 45.95%
% of Gross Profit 18.03% 21.39%
Research & Development $7.247B $5.549B
YoY Change 30.6% 43.02%
% of Gross Profit 32.56% 38.26%
Depreciation & Amortization $3.630B $2.633B
YoY Change 37.87% 37.93%
% of Gross Profit 16.31% 18.15%
Operating Expenses $11.26B $8.652B
YoY Change 30.13% 44.06%
Operating Profit $2.983B $628.0M
YoY Change 375.0% -51.13%
Interest Expense $343.0M $143.0M
YoY Change 139.86% 23.28%
% of Operating Profit 11.5% 22.77%
Other Income/Expense, Net -$378.0M $38.00M
YoY Change -1094.74% -135.85%
Pretax Income $2.605B $666.0M
YoY Change 291.14% -43.51%
Income Tax $74.00M $467.0M
% Of Pretax Income 2.84% 70.12%
Net Earnings $2.534B $197.0M
YoY Change 1186.29% -77.01%
Net Earnings / Revenue 4.79% 0.52%
Basic Earnings Per Share $5.21 $0.41
Diluted Earnings Per Share $5.07 $0.40
COMMON SHARES
Basic Shares Outstanding 486.0M shares 479.0M shares
Diluted Shares Outstanding 500.0M shares 492.0M shares

Balance Sheet

Concept 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $27.05B $21.45B
YoY Change 26.1% 29.69%
Cash & Equivalents $19.82B $13.20B
Short-Term Investments $7.227B $8.248B
Other Short-Term Assets
YoY Change
Inventory $14.82B $11.51B
Prepaid Expenses
Receivables $12.61B $8.046B
Other Receivables
Total Short-Term Assets $54.48B $41.01B
YoY Change 32.86% 27.27%
LONG-TERM ASSETS
Property, Plant & Equipment $54.77B $37.08B
YoY Change 47.69% 47.21%
Goodwill $13.94B $4.254B
YoY Change 227.79% 12.72%
Intangibles
YoY Change
Long-Term Investments $593.0M $338.0M
YoY Change 75.44% -11.05%
Other Assets $10.91B $5.437B
YoY Change 100.61% 39.7%
Total Long-Term Assets $79.62B $46.77B
YoY Change 70.22% 42.36%
TOTAL ASSETS
Total Short-Term Assets $54.48B $41.01B
Total Long-Term Assets $79.62B $46.77B
Total Assets $134.1B $87.78B
YoY Change 52.77% 34.89%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $27.66B $21.44B
YoY Change 29.0% 32.97%
Accrued Expenses $10.19B $7.880B
YoY Change 29.3% -18.03%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $31.00M $1.063B
YoY Change -97.08% 2492.68%
Total Short-Term Liabilities $50.80B $40.52B
YoY Change 25.37% 36.95%
LONG-TERM LIABILITIES
Long-Term Debt $24.64B $7.683B
YoY Change 220.68% -6.44%
Other Long-Term Liabilities $23.67B $16.36B
YoY Change 44.62% 52.38%
Total Long-Term Liabilities $48.30B $24.05B
YoY Change 100.87% 26.89%
TOTAL LIABILITIES
Total Short-Term Liabilities $50.80B $40.52B
Total Long-Term Liabilities $48.30B $24.05B
Total Liabilities $99.11B $64.57B
YoY Change 53.49% 33.02%
SHAREHOLDERS EQUITY
Retained Earnings $13.73B $6.524B
YoY Change 110.5% 66.64%
Common Stock $5.000M $5.000M
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.837B $1.837B
YoY Change 0.0% 0.0%
Treasury Stock Shares
Shareholders Equity $35.00B $23.21B
YoY Change
Total Liabilities & Shareholders Equity $134.1B $87.78B
YoY Change 52.77% 34.89%

Cashflow Statement

Concept 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income $2.534B $197.0M
YoY Change 1186.29% -77.01%
Depreciation, Depletion And Amortization $3.630B $2.633B
YoY Change 37.87% 37.93%
Cash From Operating Activities $7.449B $3.850B
YoY Change 93.48% 7.6%
INVESTING ACTIVITIES
Capital Expenditures -$3.243B -$3.113B
YoY Change 4.18% -281.94%
Acquisitions $866.0M $633.0M
YoY Change 36.81% 4421.43%
Other Investing Activities $551.0M -$2.161B
YoY Change -125.5% 196.84%
Cash From Investing Activities -$2.692B -$5.274B
YoY Change -48.96% 116.24%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$1.394B -$1.274B
YoY Change 9.42% 10.59%
NET CHANGE
Cash From Operating Activities $7.449B $3.850B
Cash From Investing Activities -$2.692B -$5.274B
Cash From Financing Activities -$1.394B -$1.274B
Net Change In Cash $2.920B -$2.450B
YoY Change -219.18% 18746.15%
FREE CASH FLOW
Cash From Operating Activities $7.449B $3.850B
Capital Expenditures -$3.243B -$3.113B
Free Cash Flow $10.69B $6.963B
YoY Change 53.55% 272.95%

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us-gaap Cost Of Goods And Services Sold
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us-gaap Cost Of Goods And Services Sold
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us-gaap Depreciation Depletion And Amortization
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us-gaap Depreciation Depletion And Amortization
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us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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us-gaap General And Administrative Expense
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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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us-gaap Increase Decrease In Accounts Receivable And Other Operating Assets
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us-gaap Increase Decrease In Accrued Liabilities And Other Operating Liabilities
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us-gaap Increase Decrease In Accrued Liabilities And Other Operating Liabilities
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us-gaap Increase Decrease In Deferred Revenue
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us-gaap Increase Decrease In Deferred Revenue
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us-gaap Increase Decrease In Inventories
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us-gaap Increase Decrease In Inventories
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us-gaap Lease And Rental Expense
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CY2017Q4 us-gaap Liabilities And Stockholders Equity
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us-gaap Marketing Expense
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us-gaap Marketing Expense
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
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us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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CY2017Q2 us-gaap Other Cost And Expense Operating
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us-gaap Other Noncash Income Expense
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us-gaap Other Noncash Income Expense
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us-gaap Other Nonoperating Income Expense
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CY2018Q2 us-gaap Other Nonoperating Income Expense
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us-gaap Other Nonoperating Income Expense
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us-gaap Other Operating Activities Cash Flow Statement
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us-gaap Other Operating Activities Cash Flow Statement
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CY2017 us-gaap Payments For Proceeds From Productive Assets
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us-gaap Payments For Proceeds From Productive Assets
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us-gaap Payments For Proceeds From Productive Assets
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CY2017 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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PaymentsToAcquireBusinessesNetOfCashAcquired
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
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CY2017 us-gaap Payments To Acquire Marketable Securities
PaymentsToAcquireMarketableSecurities
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CY2018 us-gaap Payments To Acquire Marketable Securities
PaymentsToAcquireMarketableSecurities
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CY2017Q2 us-gaap Payments To Acquire Marketable Securities
PaymentsToAcquireMarketableSecurities
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us-gaap Payments To Acquire Marketable Securities
PaymentsToAcquireMarketableSecurities
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CY2018Q2 us-gaap Payments To Acquire Marketable Securities
PaymentsToAcquireMarketableSecurities
537000000 USD
us-gaap Payments To Acquire Marketable Securities
PaymentsToAcquireMarketableSecurities
1007000000 USD
CY2017Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2018Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2017Q4 us-gaap Preferred Stock Shares Authorized
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500000000 shares
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PreferredStockSharesAuthorized
500000000 shares
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PreferredStockSharesIssued
0 shares
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PreferredStockSharesIssued
0 shares
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0 shares
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PreferredStockSharesOutstanding
0 shares
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PreferredStockValue
0 USD
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0 USD
CY2017 us-gaap Proceeds From Issuance Of Long Term Debt
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612000000 USD
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ProceedsFromIssuanceOfLongTermDebt
16380000000 USD
CY2017Q2 us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
49000000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
70000000 USD
CY2018Q2 us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
96000000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
221000000 USD
CY2017 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
6530000000 USD
CY2018 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
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10034000000 USD
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us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
3980000000 USD
CY2018Q2 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
1660000000 USD
us-gaap Proceeds From Sale And Maturity Of Marketable Securities
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4337000000 USD
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CY2017 us-gaap Repayments Of Debt
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us-gaap Repayments Of Debt
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us-gaap Repayments Of Debt
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CY2017 us-gaap Repayments Of Long Term Capital Lease Obligations
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us-gaap Repayments Of Long Term Capital Lease Obligations
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CY2018Q2 us-gaap Repayments Of Long Term Capital Lease Obligations
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us-gaap Repayments Of Long Term Capital Lease Obligations
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CY2018Q2 us-gaap Revenue Remaining Performance Obligation
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us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period
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us-gaap Sales Revenue Goods Net
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CY2018Q2 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
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us-gaap Sales Revenue Goods Net
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us-gaap Sales Revenue Net
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us-gaap Sales Revenue Net
SalesRevenueNet
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CY2017Q2 us-gaap Sales Revenue Services Net
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us-gaap Sales Revenue Services Net
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us-gaap Sales Revenue Services Net
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us-gaap Share Based Compensation
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us-gaap Share Based Compensation
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CY2018Q2 us-gaap Unrecorded Unconditional Purchase Obligation Balance On Fifth Anniversary
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CY2018Q2 us-gaap Unrecorded Unconditional Purchase Obligation Balance On Fourth Anniversary
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CY2018Q2 us-gaap Unrecorded Unconditional Purchase Obligation Balance On Second Anniversary
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CY2018Q2 us-gaap Unrecorded Unconditional Purchase Obligation Balance On Third Anniversary
UnrecordedUnconditionalPurchaseObligationBalanceOnThirdAnniversary
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CY2018Q2 us-gaap Unrecorded Unconditional Purchase Obligation Balance Sheet Amount
UnrecordedUnconditionalPurchaseObligationBalanceSheetAmount
22281000000 USD
CY2018Q2 us-gaap Unrecorded Unconditional Purchase Obligation Due After Five Years
UnrecordedUnconditionalPurchaseObligationDueAfterFiveYears
7957000000 USD
CY2018Q2 us-gaap Unrecorded Unconditional Purchase Obligation Due In Remainder Of Fiscal Year
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1258000000 USD
CY2017Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
491000000 shares
CY2018Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
500000000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
499000000 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
478000000 shares
CY2018Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
486000000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
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485000000 shares
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Prior Period Reclassifications</font></div><div style="line-height:120%;padding-top:6px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior period amounts have been reclassified to conform to the current period presentation, including the addition of restricted cash to cash and cash equivalents on the consolidated statements of cash flows as a result of the adoption of new accounting guidance.</font></div></div>
us-gaap Revenue Recognition Allowances
RevenueRecognitionAllowances
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-align:left;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Return Allowances </font></div><div style="line-height:120%;padding-top:6px;text-align:left;text-indent:29px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Return allowances, which reduce revenue and cost of sales, are estimated using historical experience. Liabilities for return allowances are included in &#8220;Accrued expenses and other&#8221; and were </font><font style="font-family:inherit;font-size:10pt;">$468 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$355 million</font><font style="font-family:inherit;font-size:10pt;"> as of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">. Included in &#8220;Inventories&#8221; on our consolidated balance sheets are assets totaling </font><font style="font-family:inherit;font-size:10pt;">$406 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$287 million</font><font style="font-family:inherit;font-size:10pt;"> as of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">, for the rights to recover products from customers associated with our liabilities for return allowances.</font></div></div>
us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-align:left;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Unearned Revenue </font></div><div style="line-height:120%;padding-top:6px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Unearned revenue is recorded when payments are received or due in advance of performing our service obligations and is recognized over the service period. Unearned revenue primarily relates to prepayments of Amazon Prime memberships and AWS services. Our total unearned revenue as of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;"> was </font><font style="font-family:inherit;font-size:10pt;">$6.1 billion</font><font style="font-family:inherit;font-size:10pt;">, of which </font><font style="font-family:inherit;font-size:10pt;">$3.9 billion</font><font style="font-family:inherit;font-size:10pt;"> was recognized as revenue during the </font><font style="font-family:inherit;font-size:10pt;">six months ended June 30, 2018</font><font style="font-family:inherit;font-size:10pt;">, including adjustments related to the new revenue recognition guidance. Included in &#8220;Other long-term liabilities&#8221; on our consolidated balance sheets was </font><font style="font-family:inherit;font-size:10pt;">$1.0 billion</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$1.2 billion</font><font style="font-family:inherit;font-size:10pt;"> of unearned revenue as of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">. </font></div><div style="line-height:120%;padding-top:6px;text-align:left;text-indent:29px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Additionally, we have performance obligations, primarily related to AWS, associated with commitments in customer contracts for future services that have not yet been recognized in our financial statements. For contracts with original terms that exceed one year, the amount of revenue not yet recognized was </font><font style="font-family:inherit;font-size:10pt;">$16.0 billion</font><font style="font-family:inherit;font-size:10pt;"> as of </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">.&#160;The weighted average remaining life of our long-term contracts is </font><font style="font-family:inherit;font-size:10pt;">3.5 years</font><font style="font-family:inherit;font-size:10pt;">. However, the timing of revenue recognition is largely driven by customer activity, some of which can extend beyond the original contractual term.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, income taxes, commitments and contingencies, valuation of acquired intangibles and goodwill, stock-based compensation forfeiture rates, vendor funding, and inventory valuation. Actual results could differ materially from those estimates.</font></div></div>

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