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Segment Information
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Segment Information
SEGMENT INFORMATION
Beginning in the first quarter of 2015, we changed our reportable segments to North America, International, and AWS. These segments reflect the way the Company evaluates its business performance and manages its operations.

We allocate to segment results the operating expenses “Fulfillment,” “Marketing,” “Technology and content,” and “General and administrative” based on usage, which is generally reflected in the segment in which the costs are incurred. The majority of technology infrastructure costs are allocated to the AWS segment based on usage. The majority of the remaining non-infrastructure technology costs are incurred in the U.S. and are allocated to our North America segment. We exclude from our allocations the portions of these operating expense lines attributable to stock-based compensation. We do not allocate the line item “Other operating expense (income), net” to our segment operating results. There are no internal revenue transactions between our reportable segments.
North America
The North America segment consists primarily of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America-focused websites such as www.amazon.com, www.amazon.ca, and www.amazon.com.mx. This segment includes export sales from these websites.
International
The International segment consists primarily of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused websites. This segment includes export sales from these internationally-focused websites (including export sales from these sites to customers in the U.S. and Canada), but excludes export sales from our North American websites.
AWS
The AWS segment consists of amounts earned from sales of compute, storage, database, and other AWS service offerings for start-ups, enterprises, government agencies, and academic institutions.

Information on reportable segments and reconciliation to consolidated net income (loss) is as follows (in millions):
  
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2015
 
2014
 
2015
 
2014
North America
 
 
 
 
 
 
 
Net sales
$
13,796

 
$
10,994

 
$
27,202

 
$
21,802

Segment operating expenses (1)
13,093

 
10,665

 
25,982

 
21,183

Segment operating income (loss)
$
703

 
$
329

 
$
1,220

 
$
619

International
 
 
 
 
 
 
 
Net sales
$
7,565

 
$
7,341

 
$
15,310

 
$
15,224

Segment operating expenses (1)
7,584

 
7,343

 
15,405

 
15,259

Segment operating income (loss)
$
(19
)
 
$
(2
)
 
$
(95
)
 
$
(35
)
AWS
 
 
 
 
 
 
 
Net sales
$
1,824

 
$
1,005

 
$
3,389

 
$
2,055

Segment operating expenses (1)
1,433

 
928

 
2,734

 
1,733

Segment operating income (loss)
$
391

 
$
77

 
$
655

 
$
322

Consolidated
 
 
 
 
 
 
 
Net sales
$
23,185

 
$
19,340

 
$
45,901

 
$
39,081

Segment operating expenses (1)
22,110

 
18,936

 
44,121

 
38,175

Segment operating income (loss)
1,075

 
404

 
1,780

 
906

Stock-based compensation
(563
)
 
(391
)
 
(969
)
 
(711
)
Other operating income (expense), net
(48
)
 
(28
)
 
(92
)
 
(63
)
Income (loss) from operations
464

 
(15
)
 
719

 
132

Total non-operating income (expense)
(102
)
 
(12
)
 
(336
)
 
(39
)
Provision for income taxes
(266
)
 
(94
)
 
(337
)
 
(167
)
Equity-method investment activity, net of tax
(4
)
 
(5
)
 
(11
)
 
56

Net income (loss)
$
92

 
$
(126
)
 
$
35

 
$
(18
)
___________________
(1)
Excludes stock-based compensation and “Other operating expense (income), net” which are not allocated to segments.

We have aggregated our products and services into groups of similar products and services and provided the supplemental disclosure of net sales (in millions) below. We evaluate whether additional disclosure is appropriate when a product or service category begins to approach a significant level of net sales. For the periods presented, no individual product or service represented more than 10% of net sales.
  
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2015
 
2014
 
2015
 
2014
Net Sales:
 
 
 
Media
$
4,714

 
$
4,844

 
$
10,002

 
$
10,311

Electronics and other general merchandise
16,412

 
13,278

 
32,041

 
26,296

AWS
1,824

 
1,005

 
3,389

 
2,055

Other (1)
235

 
213

 
469

 
419

Consolidated
$
23,185

 
$
19,340

 
$
45,901

 
$
39,081

___________________
(1)
Includes sales from non-retail activities, such as certain advertising services and our co-branded credit card agreements.