XML 26 R15.htm IDEA: XBRL DOCUMENT v3.21.2
Segment Information
9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION We 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 is as follows (in millions):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020202120202021
North America
Net sales$59,373 $65,557 $160,936 $197,473 
Operating expenses57,121 64,677 155,232 189,996 
Operating income$2,252 $880 $5,704 $7,477 
International
Net sales$25,171 $29,145 $66,945 $90,515 
Operating expenses24,764 30,056 66,590 89,812 
Operating income (loss)$407 $(911)$355 $703 
AWS
Net sales$11,601 $16,110 $32,628 $44,422 
Operating expenses8,066 11,227 22,661 31,183 
Operating income$3,535 $4,883 $9,967 $13,239 
Consolidated
Net sales$96,145 $110,812 $260,509 $332,410 
Operating expenses89,951 105,960 244,483 310,991 
Operating income6,194 4,852 16,026 21,419 
Total non-operating income (expense)615 (537)387 1,798 
Provision for income taxes(569)(1,155)(2,298)(4,179)
Equity-method investment activity, net of tax91 (4)(6)
Net income$6,331 $3,156 $14,109 $19,041 
Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):    
  
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020202120202021
Net Sales:
Online stores (1)$48,350 $49,942 $130,899 $156,000 
Physical stores (2)3,788 4,269 12,201 12,387 
Third-party seller services (3)20,436 24,252 53,121 73,046 
Subscription services (4)6,572 8,148 18,146 23,645 
AWS11,601 16,110 32,628 44,422 
Other (5)5,398 8,091 13,514 22,910 
Consolidated$96,145 $110,812 $260,509 $332,410 
____________________________
(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.