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Segment Information (Tables)
3 Months Ended
Mar. 31, 2018
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 
 March 31,
 
2017
 
2018
North America
 
 
 
Net sales
$
20,992

 
$
30,725

Operating expenses
20,396

 
29,576

Operating income
$
596

 
$
1,149

 
 
 
 
International
 
 
 
Net sales
$
11,061

 
$
14,875

Operating expenses
11,542

 
15,497

Operating income (loss)
$
(481
)
 
$
(622
)
 
 
 
 
AWS
 
 
 
Net sales
$
3,661

 
$
5,442

Operating expenses
2,771

 
4,042

Operating income
$
890

 
$
1,400

 
 
 
 
Consolidated
 
 
 
Net sales
$
35,714

 
$
51,042

Operating expenses
34,709

 
49,115

Operating income
1,005

 
1,927

Total non-operating income (expense)
(52
)
 
(11
)
Provision for income taxes
(229
)
 
(287
)
Net income
$
724

 
$
1,629

Disaggregation of Revenue
Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):
  
Three Months Ended 
 March 31,
 
2017
 
2018
Net Sales:
 
Online stores (1)
$
22,826

 
$
26,939

Physical stores (2)

 
4,263

Third-party seller services (3)
6,438

 
9,265

Subscription services (4)
1,939

 
3,102

AWS
3,661

 
5,442

Other (5)
850

 
2,031

Consolidated
$
35,714

 
$
51,042

____________________________
(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 media products available in both a physical and digital format, such as books, music, videos, 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 Subscription services.
(2)
Includes product sales where our customers physically select items in a store.
(3)
Includes commissions, related fulfillment and shipping fees, and other third-party seller services.
(4)
Includes annual and monthly fees associated with Amazon Prime membership, as well as audiobook, e-book, digital video, digital music, and other non-AWS subscription services.
(5)
Primarily includes sales of advertising services, as well as sales related to our other service offerings.