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Segment Information (Tables)
6 Months Ended
Jun. 30, 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
June 30,
 
Six Months Ended
June 30,
 
2018
 
2019
 
2018
 
2019
North America
 
 
 
 
 
 
 
Net sales
$
32,169

 
$
38,653

 
$
62,894

 
$
74,465

Operating expenses
30,334

 
37,089

 
59,910

 
70,614

Operating income
$
1,835

 
$
1,564

 
$
2,984

 
$
3,851

 
 
 
 
 
 
 
 
International
 
 
 
 
 
 
 
Net sales
$
14,612

 
$
16,370

 
$
29,487

 
$
32,563

Operating expenses
15,106

 
16,971

 
30,603

 
33,253

Operating income (loss)
$
(494
)
 
$
(601
)
 
$
(1,116
)
 
$
(690
)
 
 
 
 
 
 
 
 
AWS
 
 
 
 
 
 
 
Net sales
$
6,105

 
$
8,381

 
$
11,547

 
$
16,076

Operating expenses
4,463

 
6,260

 
8,504

 
11,733

Operating income
$
1,642

 
$
2,121

 
$
3,043

 
$
4,343

 
 
 
 
 
 
 
 
Consolidated
 
 
 
 
 
 
 
Net sales
$
52,886

 
$
63,404

 
$
103,928

 
$
123,104

Operating expenses
49,903

 
60,320

 
99,017

 
115,600

Operating income
2,983

 
3,084

 
4,911

 
7,504

Total non-operating income (expense)
(378
)
 
(195
)
 
(391
)
 
(213
)
Provision for income taxes
(74
)
 
(257
)
 
(361
)
 
(1,094
)
Equity-method investment activity, net of tax
3

 
(7
)
 
4

 
(11
)
Net income
$
2,534

 
$
2,625

 
$
4,163

 
$
6,186



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,
 
2018
 
2019
 
2018
 
2019
Net Sales:
 
 
 
Online stores (1)
$
27,165

 
$
31,053

 
$
54,105

 
$
60,552

Physical stores (2)
4,312

 
4,330

 
8,575

 
8,636

Third-party seller services (3)
9,702

 
11,962

 
18,966

 
23,104

Subscription services (4)
3,408

 
4,676

 
6,510

 
9,018

AWS
6,105

 
8,381

 
11,547

 
16,076

Other (5)
2,194

 
3,002

 
4,225

 
5,718

Consolidated
$
52,886

 
$
63,404

 
$
103,928

 
$
123,104

____________________________
(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. Sales from customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.”
(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.