Segment Information (Tables)

6 Months Ended

Jun. 30, 2021

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,
	2020		2021		2020		2021
North America
Net sales	$	55,436	$	67,550	$	101,563	$	131,916
Operating expenses	53,295		64,403		98,111		125,319
Operating income	$	2,141	$	3,147	$	3,452	$	6,597

International
Net sales	$	22,668	$	30,721	$	41,774	$	61,370
Operating expenses	22,323		30,359		41,826		59,756
Operating income (loss)	$	345	$	362	$	(52)	$	1,614

AWS
Net sales	$	10,808	$	14,809	$	21,027	$	28,312
Operating expenses	7,451		10,616		14,595		19,956
Operating income	$	3,357	$	4,193	$	6,432	$	8,356

Consolidated
Net sales	$	88,912	$	113,080	$	164,364	$	221,598
Operating expenses	83,069		105,378		154,532		205,031
Operating income	5,843		7,702		9,832		16,567
Total non-operating income (expense)	378		932		(228)		2,335
Provision for income taxes	(984)		(868)		(1,729)		(3,024)
Equity-method investment activity, net of tax	6		12		(97)		7
Net income	$	5,243	$	7,778	$	7,778	$	15,885

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,
	2020		2021		2020		2021
Net Sales:
Online stores (1)	$	45,896	$	53,157	$	82,549	$	106,058
Physical stores (2)	3,774		4,198		8,414		8,118
Third-party seller services (3)	18,195		25,085		32,676		48,794
Subscription services (4)	6,018		7,917		11,574		15,497
AWS	10,808		14,809		21,027		28,312
Other (5)	4,221		7,914		8,124		14,819
Consolidated	$	88,912	$	113,080	$	164,364	$	221,598

____________________________

(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.