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Segment Information
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATIONWe have organized our operations into three segments: North America, International, and AWS. We allocate to segment results the operating expenses “Fulfillment,” “Technology and content,” “Marketing,” and “General and administrative” based on usage, which is generally reflected in the segment in which the costs are incurred. The majority of technology infrastructure costs are allocated to the AWS segment based on usage. The majority of the remaining non-infrastructure technology costs are incurred in the U.S. and are allocated to our North America segment. There are no internal revenue transactions between our reportable segments. These segments reflect the way our chief operating decision maker evaluates the Company’s business performance and manages its operations.
North America
The North America segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America-focused online and physical stores. This segment includes export sales from these online stores.
International
The International segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused online stores. This segment includes export sales from these internationally-focused online stores (including export sales from these online stores to customers in the U.S., Mexico, and Canada), but excludes export sales from our North America-focused online stores.
AWS
The AWS segment consists of amounts earned from global sales of compute, storage, database, and other services for start-ups, enterprises, government agencies, and academic institutions.
Information on reportable segments and reconciliation to consolidated net income (loss) is as follows (in millions):
  
Year Ended December 31,
 201820192020
North America
Net sales$141,366 $170,773 $236,282 
Operating expenses134,099 163,740 227,631 
Operating income$7,267 $7,033 $8,651 
International
Net sales$65,866 $74,723 $104,412 
Operating expenses68,008 76,416 103,695 
Operating income (loss)$(2,142)$(1,693)$717 
AWS
Net sales$25,655 $35,026 $45,370 
Operating expenses18,359 25,825 31,839 
Operating income$7,296 $9,201 $13,531 
Consolidated
Net sales$232,887 $280,522 $386,064 
Operating expenses220,466 265,981 363,165 
Operating income12,421 14,541 22,899 
Total non-operating income (expense)(1,160)(565)1,279 
Provision for income taxes(1,197)(2,374)(2,863)
Equity-method investment activity, net of tax(14)16 
Net income$10,073 $11,588 $21,331 
Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):
  
Year Ended December 31,
 201820192020
Net Sales:
Online stores (1)$122,987 $141,247 $197,346 
Physical stores (2)17,224 17,192 16,227 
Third-party seller services (3)42,745 53,762 80,461 
Subscription services (4)14,168 19,210 25,207 
AWS25,655 35,026 45,370 
Other (5)10,108 14,085 21,453 
Consolidated$232,887 $280,522 $386,064 
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(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, videos, games, music, 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 to 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 digital video, audiobook, digital music, e-book, 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 generated from our internationally-focused online stores are denominated in local functional currencies. Revenues are translated at average rates prevailing throughout the period. Net sales attributed to countries that represent a significant portion of consolidated net sales are as follows (in millions):
 Year Ended December 31,
 201820192020
United States$160,146 $193,636 $263,520 
Germany19,881 22,232 29,565 
United Kingdom14,524 17,527 26,483 
Japan13,829 16,002 20,461 
Rest of world24,507 31,125 46,035 
Consolidated$232,887 $280,522 $386,064 
Total segment assets exclude corporate assets, such as cash and cash equivalents, marketable securities, other long-term investments, corporate facilities, goodwill and other acquired intangible assets, and tax assets. Technology infrastructure assets are allocated among the segments based on usage, with the majority allocated to the AWS segment. Total segment assets reconciled to consolidated amounts are as follows (in millions):
 December 31,
 201820192020
North America (1)$47,251 $72,277 $108,405 
International (1)19,923 30,709 42,212 
AWS (2)26,340 36,500 47,574 
Corporate69,134 85,762 123,004 
Consolidated$162,648 $225,248 $321,195 
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(1)North America and International segment assets primarily consist of property and equipment, operating leases, inventory, and accounts receivable.
(2)AWS segment assets primarily consist of property and equipment and accounts receivable.
Property and equipment, net by segment is as follows (in millions):
 December 31,
 201820192020
North America$27,052 $31,719 $54,912 
International8,552 9,566 15,375 
AWS18,851 23,481 32,151 
Corporate7,342 7,939 10,676 
Consolidated$61,797 $72,705 $113,114 
Total net additions to property and equipment by segment are as follows (in millions):
 Year Ended December 31,
 201820192020
North America (1)$10,749 $11,752 $29,889 
International (1)2,476 3,298 8,072 
AWS (2)9,783 13,058 16,530 
Corporate2,060 1,910 3,485 
Consolidated$25,068 $30,018 $57,976 
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(1)Includes property and equipment added under finance leases of $2.0 billion, $3.8 billion, and $5.6 billion in 2018, 2019, and 2020, and under financing obligations of $3.0 billion, $1.3 billion, and $2.7 billion in 2018, 2019, and 2020.
(2)Includes property and equipment added under finance leases of $8.4 billion, $10.6 billion, and $7.7 billion in 2018, 2019, and 2020, and under financing obligations of $245 million, $0 million, and $130 million in 2018, 2019, and 2020.
U.S. property and equipment, net and operating leases were $45.1 billion, $69.8 billion, and $109.5 billion, in 2018, 2019, and 2020, and non-U.S. property and equipment, net and operating leases were $16.7 billion, $28.0 billion, and $41.2 billion in 2018, 2019, and 2020. Except for the U.S., property and equipment, net and operating leases in any single country were less than 10% of consolidated property and equipment, net and operating leases.
Depreciation and amortization expense on property and equipment, including corporate property and equipment, are allocated to all segments based on usage. Total depreciation and amortization expense, by segment, is as follows (in millions):
 Year Ended December 31,
 201820192020
North America$4,415 $5,106 $6,421 
International1,628 1,886 2,215 
AWS6,095 8,158 7,603 
Consolidated$12,138 $15,150 $16,239