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Segment Information (Tables)
 12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Information on Reportable Segments and Reconciliation to Consolidated Net Income (Loss)
Information on reportable segments and reconciliation to consolidated net income (loss) is as follows (in millions):
  
Year Ended December 31,
 
2016
 
2017
 
2018
North America
 
 
 
 
 
Net sales
$
79,785

 
$
106,110

 
$
141,366

Operating expenses
77,424

 
103,273

 
134,099

Operating income
$
2,361

 
$
2,837

 
$
7,267

International
 
 
 
 
 
Net sales
$
43,983

 
$
54,297

 
$
65,866

Operating expenses
45,266

 
57,359

 
68,008

Operating income (loss)
$
(1,283
)
 
$
(3,062
)
 
$
(2,142
)
AWS
 
 
 
 
 
Net sales
$
12,219

 
$
17,459

 
$
25,655

Operating expenses
9,111

 
13,128

 
18,359

Operating income
$
3,108

 
$
4,331

 
$
7,296

Consolidated
 
 
 
 
 
Net sales
$
135,987

 
$
177,866

 
$
232,887

Operating expenses
131,801

 
173,760

 
220,466

Operating income
4,186

 
4,106

 
12,421

Total non-operating income (expense)
(294
)
 
(300
)
 
(1,160
)
Provision for income taxes
(1,425
)
 
(769
)
 
(1,197
)
Equity-method investment activity, net of tax
(96
)
 
(4
)
 
9

Net income
$
2,371

 
$
3,033

 
$
10,073
Disaggregation of Revenue
Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):
  
Year Ended December 31,
 
2016
 
2017
 
2018
Net Sales:
 
 
 
 
 
Online stores (1)
$
91,431

 
$
108,354

 
$
122,987

Physical stores (2)
—

 
5,798

 
17,224

Third-party seller services (3)
22,993

 
31,881

 
42,745

Subscription services (4)
6,394

 
9,721

 
14,168

AWS
12,219

 
17,459

 
25,655

Other (5)
2,950

 
4,653

 
10,108

Consolidated
$
135,987

 
$
177,866

 
$
232,887

___________________
(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 memberships, as well as audiobook, digital video, e-book, 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.
Net Sales Attributed to Countries that Represent a Significant Portion of Consolidated Net Sales
Net sales attributed to countries that represent a significant portion of consolidated net sales are as follows (in millions):
 
Year Ended December 31,
 
2016
 
2017
 
2018
United States
$
90,349

 
$
120,486

 
$
160,146

Germany
14,148

 
16,951

 
19,881

United Kingdom
9,547

 
11,372

 
14,524

Japan
10,797

 
11,907

 
13,829

Rest of world
11,146

 
17,150

 
24,507

Consolidated
$
135,987

 
$
177,866

 
$
232,887
Reconciliation of Assets from Segment to Consolidated
Total segment assets reconciled to consolidated amounts are as follows (in millions):
 
December 31,
 
2016
 
2017
 
2018
North America (1)
$
22,225

 
$
35,844

 
$
47,251

International (1)
10,429

 
18,014

 
19,923

AWS (2)
12,698

 
18,660

 
26,340

Corporate
38,050

 
58,792

 
69,134

Consolidated
$
83,402

 
$
131,310

 
$
162,648

___________________
(1)
North America and International segment assets primarily consist of property and equipment, inventory, and accounts receivable.
(2)
AWS segment assets primarily consist of property and equipment and accounts receivable.
Reconciliation of Property and Equipment from Segments to Consolidated
Property and equipment, net by segment is as follows (in millions):
 
December 31,
 
2016
 
2017
 
2018
North America
$
10,143

 
$
20,401

 
$
27,052

International
3,448

 
7,425

 
8,552

AWS
10,300

 
14,885

 
18,851

Corporate
5,223

 
6,155

 
7,342

Consolidated
$
29,114

 
$
48,866

 
$
61,797
Reconciliation of Property and Equipment Additions and Depreciation from Segments to Consolidated
Total net additions to property and equipment by segment are as follows (in millions):
 
Year Ended December 31,
 
2016
 
2017
 
2018
North America (1)
$
5,132

 
$
13,200

 
$
10,749

International (1)
1,680

 
5,196

 
2,476

AWS (2)
5,193

 
9,190

 
9,783

Corporate
1,580

 
2,197

 
2,060

Consolidated
$
13,585

 
$
29,783

 
$
25,068

___________________
(1)
Includes property and equipment added under capital leases of $1.5 billion, $2.9 billion, and $2.0 billion in 2016, 2017, and 2018, and under other financing arrangements of $849 million, $2.9 billion, and $3.0 billion in 2016, 2017, and 2018.
(2)
Includes property and equipment added under capital leases of $4.0 billion, $7.3 billion, and $8.4 billion in 2016, 2017, and 2018, and under finance leases of $75 million, $134 million, and $245 million in 2016, 2017, and 2018.
Total depreciation expense, by segment, is as follows (in millions):
 
Year Ended December 31,
 
2016
 
2017
 
2018
North America
$
1,971

 
$
3,029

 
$
4,415

International
930

 
1,278

 
1,628

AWS
3,461

 
4,524

 
6,095

Consolidated
$
6,362

 
$
8,831

 
$
12,138