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Segment Information (Tables)
3 Months Ended
Mar. 31, 2019
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,
 
2018
 
2019
North America
 
 
 
Net sales
$
30,725

 
$
35,812

Operating expenses
29,576

 
33,525

Operating income
$
1,149

 
$
2,287

 
 
 
 
International
 
 
 
Net sales
$
14,875

 
$
16,192

Operating expenses
15,497

 
16,282

Operating income (loss)
$
(622
)
 
$
(90
)
 
 
 
 
AWS
 
 
 
Net sales
$
5,442

 
$
7,696

Operating expenses
4,042

 
5,473

Operating income
$
1,400

 
$
2,223

 
 
 
 
Consolidated
 
 
 
Net sales
$
51,042

 
$
59,700

Operating expenses
49,115

 
55,280

Operating income
1,927

 
4,420

Total non-operating income (expense)
(11
)
 
(19
)
Provision for income taxes
(287
)
 
(836
)
Equity-method investment activity, net of tax

 
(4
)
Net income
$
1,629

 
$
3,561

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,
 
2018
 
2019
Net Sales:
 
Online stores (1)
$
26,939

 
$
29,498

Physical stores (2)
4,263

 
4,307

Third-party seller services (3)
9,265

 
11,141

Subscription services (4)
3,102

 
4,342

AWS
5,442

 
7,696

Other (5)
2,031

 
2,716

Consolidated
$
51,042

 
$
59,700

____________________________
(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.