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Segment Information (Tables)
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Information on Reportable Segments and Reconciliation to Consolidated Net Income
Information on reportable segments and reconciliation to consolidated net income is as follows (in millions):
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2016
 
2017
 
2016
 
2017
North America
 
 
 
 
 
 
 
Net sales
$
17,674

 
$
22,370

 
$
34,670

 
$
43,362

Operating expenses
16,972

 
21,934

 
33,380

 
42,330

Operating income
$
702

 
$
436

 
$
1,290

 
$
1,032

 
 
 
 
 
 
 
 
International
 
 
 
 
 
 
 
Net sales
$
9,844

 
$
11,485

 
$
19,410

 
$
22,546

Operating expenses
9,979

 
12,209

 
19,665

 
23,752

Operating income (loss)
$
(135
)
 
$
(724
)
 
$
(255
)
 
$
(1,206
)
 
 
 
 
 
 
 
 
AWS
 
 
 
 
 
 
 
Net sales
$
2,886

 
$
4,100

 
$
5,452

 
$
7,761

Operating expenses
2,168

 
3,184

 
4,131

 
5,955

Operating income
$
718

 
$
916

 
$
1,321

 
$
1,806

 
 
 
 
 
 
 
 
Consolidated
 
 
 
 
 
 
 
Net sales
$
30,404

 
$
37,955

 
$
59,532

 
$
73,669

Operating expenses
29,119

 
37,327

 
57,176

 
72,037

Operating income
1,285

 
628

 
2,356

 
1,632

Total non-operating income (expense)
(106
)
 
38

 
(122
)
 
(14
)
Provision for income taxes
(307
)
 
(467
)
 
(782
)
 
(695
)
Equity-method investment activity, net of tax
(15
)
 
(2
)
 
(82
)
 
(2
)
Net income
$
857

 
$
197

 
$
1,370

 
$
921

Net Sales by Groups of Similar Products and Services
Net sales by groups of similar products and services is as follows (in millions):
  
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2016
 
2017
 
2016
 
2017
Net Sales:
 
 
 
Retail products (1)
$
20,378

 
$
23,754

 
$
40,293

 
$
46,580

Retail third-party seller services (2)
5,083

 
6,991

 
9,885

 
13,429

Retail subscription services (3)
1,431

 
2,165

 
2,732

 
4,104

AWS
2,886

 
4,100

 
5,452

 
7,761

Other (4)
626

 
945

 
1,170

 
1,795

Consolidated
$
30,404

 
$
37,955

 
$
59,532

 
$
73,669

____________________________
(1)
Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes electronics and general merchandise as well as media products available in both a physical and digital format, such as books, music, video, games, and software. These product sales include digital products sold on a transactional basis; digital product subscriptions that provide unlimited viewing or usage rights are included in Retail subscription services.
(2)
Includes commissions, related fulfillment and shipping fees, and other third-party seller services.
(3)
Includes annual and monthly fees associated with Amazon Prime membership, as well as audiobook, e-book, digital video, digital music, and other subscription services.
(4)
Includes sales not otherwise included above, such as certain advertising services and our co-branded credit card agreements.