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Acquisitions, Goodwill, and Acquired Intangible Assets | 12 Months Ended
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Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
Acquisitions, Goodwill, and Acquired Intangible Assets | ACQUISITIONS, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS 2022 Acquisition Activity On March 17, 2022, we acquired MGM Holdings Inc., for cash consideration of approximately $6.1 billion, net of cash acquired, to provide more digital media content options for customers. We also assumed $2.5 billion of debt, which we repaid immediately after closing. The acquired assets primarily consist of $3.4 billion of video content and $4.9 billion of goodwill. During 2022, we also completed acquisition activity for aggregate cash consideration of $141 million, net of cash acquired. 2023 Acquisition Activity On February 22, 2023, we acquired 1Life Healthcare, Inc. (One Medical), for cash consideration of approximately $3.5 billion, net of cash acquired, to provide healthcare options for customers. The acquired assets primarily consist of $1.3 billion of intangible assets and $2.5 billion of goodwill, which is allocated to our North America segment. During 2023, we also completed acquisition activity for immaterial aggregate cash consideration, net of cash acquired. 2024 Acquisition Activity During 2024, we completed acquisition activity for aggregate cash consideration of $780 million, net of cash acquired. The primary reasons for these transactions were to acquire technologies and know-how to enable Amazon to serve customers more effectively or to expand our customer base. Pro forma results of operations have not been presented because the effects of the 2024 transactions, individually and in the aggregate, were not material to our consolidated results of operations. Transaction-related costs were expensed as incurred and were not significant. Goodwill The goodwill resulting from the acquisition activity is primarily related to expected improvements in technology performance and functionality, as well as sales growth from future product and service offerings and new customers, together with certain intangible assets that do not qualify for separate recognition. The goodwill resulting from the acquisition activity is generally not deductible for tax purposes. The following summarizes our goodwill activity in 2023 and 2024 by segment (in millions):
| North America |  | International |  | AWS |  | Consolidated
Goodwill - January 1, 2023 | $ | 16,621 |  |  | $ | 2,411 |  |  | $ | 1,256 |  |  | $ | 20,288 |
Acquisition activity | 2,494 |  |  | — |  |  | — |  |  | 2,494 |
Other adjustments (1) | 11 |  |  | 1 |  |  | (5) |  |  | 7 |
Goodwill - December 31, 2023 | 19,126 |  |  | 2,412 |  |  | 1,251 |  |  | 22,789 |
Acquisition activity | 191 |  |  | 77 |  |  | 52 |  |  | 320 |
Other adjustments (1) | (28) |  |  | (4) |  |  | (3) |  |  | (35) |
Goodwill - December 31, 2024 | $ | 19,289 |  |  | $ | 2,485 |  |  | $ | 1,300 |  |  | $ | 23,074 |
___________________ (1)Primarily includes changes in foreign exchange rates.Intangible Assets Acquired identifiable intangible assets are valued primarily by using discounted cash flows. These assets are included within “Other assets” on our consolidated balance sheets and consist of the following (in millions):
| December 31, |  |
| 2023 |  | 2024 |  |
| Acquired Intangibles, Gross (1) |  | Accumulated Amortization (1) |  | Acquired Intangibles, Net |  | Acquired Intangibles, Gross (1) |  | Accumulated Amortization (1) |  | Acquired Intangibles, Net |  | Weighted Average Life Remaining
Finite-lived intangible assets (2): |  |  |  |  |  |  |  |  |  |  |  |  |
Marketing-related | $ | 2,643 |  |  | $ | (738) |  |  | $ | 1,905 |  |  | $ | 2,629 |  |  | $ | (860) |  |  | $ | 1,769 |  |  | 16.8
Contract-based | 4,800 |  |  | (1,129) |  |  | 3,671 |  |  | 5,767 |  |  | (1,541) |  |  | 4,226 |  |  | 10.9
Technology- and content-based | 743 |  |  | (340) |  |  | 403 |  |  | 1,246 |  |  | (284) |  |  | 962 |  |  | 3.2
Customer-related | 749 |  |  | (188) |  |  | 561 |  |  | 764 |  |  | (282) |  |  | 482 |  |  | 5.7
Total finite-lived intangible assets | $ | 8,935 |  |  | $ | (2,395) |  |  | $ | 6,540 |  |  | $ | 10,406 |  |  | $ | (2,967) |  |  | $ | 7,439 |  |  | 11.0
IPR&D and other (3) | $ | 1,147 |  |  |  |  |  | $ | 1,147 |  |  | $ | 1,163 |  |  |  |  |  | $ | 1,163 |  |  |
Total acquired intangibles | $ | 10,082 |  |  | $ | (2,395) |  |  | $ | 7,687 |  |  | $ | 11,569 |  |  | $ | (2,967) |  |  | $ | 8,602 |  |  |
___________________ (1)Excludes the original cost and accumulated amortization of fully-amortized intangibles. (2)Finite-lived intangible assets, excluding acquired video content, have estimated useful lives of between one and twenty-five years, and are being amortized to operating expenses on a straight-line basis. (3)Intangible assets acquired in a business combination that are in-process and used in research and development activities are considered indefinite-lived until the completion or abandonment of the research and development efforts. Once the research and development efforts are completed, we determine the useful life and begin amortizing the assets. Amortization expense for acquired finite-lived intangibles was $604 million, $706 million, and $838 million in 2022, 2023, and 2024. Expected future amortization expense of acquired finite-lived intangible assets as of December 31, 2024 is as follows (in millions):
Year Ended December 31,
2025 | $ | 994 |
2026 | 918 |
2027 | 796 |
2028 | 632 |
2029 | 615 |
Thereafter | 3,484 |
| $ | 7,439 |

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
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