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Segment Information (Tables)
 6 Months Ended
Jun. 30, 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 
 June 30,
 
Six Months Ended 
 June 30,
 
2017
 
2018
 
2017
 
2018
North America
 
 
 
 
 
 
 
Net sales
$
22,370

 
$
32,169

 
$
43,362

 
$
62,894

Operating expenses
21,934

 
30,334

 
42,330

 
59,910

Operating income
$
436

 
$
1,835

 
$
1,032

 
$
2,984

 
 
 
 
 
 
 
 
International
 
 
 
 
 
 
 
Net sales
$
11,485

 
$
14,612

 
$
22,546

 
$
29,487

Operating expenses
12,209

 
15,106

 
23,752

 
30,603

Operating income (loss)
$
(724
)
 
$
(494
)
 
$
(1,206
)
 
$
(1,116
)
 
 
 
 
 
 
 
 
AWS
 
 
 
 
 
 
 
Net sales
$
4,100

 
$
6,105

 
$
7,761

 
$
11,547

Operating expenses
3,184

 
4,463

 
5,955

 
8,504

Operating income
$
916

 
$
1,642

 
$
1,806

 
$
3,043

 
 
 
 
 
 
 
 
Consolidated
 
 
 
 
 
 
 
Net sales
$
37,955

 
$
52,886

 
$
73,669

 
$
103,928

Operating expenses
37,327

 
49,903

 
72,037

 
99,017

Operating income
628

 
2,983

 
1,632

 
4,911

Total non-operating income (expense)
38

 
(378
)
 
(14
)
 
(391
)
Provision for income taxes
(467
)
 
(74
)
 
(695
)
 
(361
)
Equity-method investment activity, net of tax
(2
)
 
3

 
(2
)
 
4

Net income
$
197

 
$
2,534

 
$
921

 
$
4,163
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 
 June 30,
 
Six Months Ended 
 June 30,
 
2017
 
2018
 
2017
 
2018
Net Sales:
 
 
 
Online stores (1)
$
23,754

 
$
27,165

 
$
46,580

 
$
54,105

Physical stores (2)
—

 
4,312

 
—

 
8,575

Third-party seller services (3)
6,991

 
9,702

 
13,429

 
18,966

Subscription services (4)
2,165

 
3,408

 
4,104

 
6,510

AWS
4,100

 
6,105

 
7,761

 
11,547

Other (5)
945

 
2,194

 
1,795

 
4,225

Consolidated
$
37,955

 
$
52,886

 
$
73,669

 
$
103,928

____________________________
(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 and any 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.