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Segment Information
12 Months Ended
Dec. 31, 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 (loss) is as follows (in millions):
  
Year Ended December 31,
 201920202021
North America
Net sales$170,773 $236,282 $279,833 
Operating expenses163,740 227,631 272,562 
Operating income$7,033 $8,651 $7,271 
International
Net sales$74,723 $104,412 $127,787 
Operating expenses76,416 103,695 128,711 
Operating income (loss)$(1,693)$717 $(924)
AWS
Net sales$35,026 $45,370 $62,202 
Operating expenses25,825 31,839 43,670 
Operating income$9,201 $13,531 $18,532 
Consolidated
Net sales$280,522 $386,064 $469,822 
Operating expenses265,981 363,165 444,943 
Operating income14,541 22,899 24,879 
Total non-operating income (expense)(565)1,279 13,272 
Provision for income taxes(2,374)(2,863)(4,791)
Equity-method investment activity, net of tax(14)16 
Net income$11,588 $21,331 $33,364 
Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):
  
Year Ended December 31,
 201920202021
Net Sales:
Online stores (1)$141,247 $197,346 $222,075 
Physical stores (2)17,192 16,227 17,075 
Third-party seller services (3)53,762 80,461 103,366 
Subscription services (4)19,210 25,207 31,768 
Advertising services (5)12,625 19,773 31,160 
AWS35,026 45,370 62,202 
Other (6)1,460 1,680 2,176 
Consolidated$280,522 $386,064 $469,822 
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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)Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.
(6)Includes sales related to various other service offerings.
Net sales are attributed to countries primarily based on country-focused online and physical stores or, for AWS purposes, the selling entity. Net sales attributed to countries that represent a significant portion of consolidated net sales are as follows (in millions):
 Year Ended December 31,
 201920202021
United States$193,636 $263,520 $314,006 
Germany22,232 29,565 37,326 
United Kingdom17,527 26,483 31,914 
Japan16,002 20,461 23,071 
Rest of world31,125 46,035 63,505 
Consolidated$280,522 $386,064 $469,822 
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,
 201920202021
North America (1)$72,277 $108,405 $161,255 
International (1)30,709 42,212 57,983 
AWS (2)36,500 47,574 63,835 
Corporate85,762 123,004 137,476 
Consolidated$225,248 $321,195 $420,549 
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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,
 201920202021
North America$31,719 $54,912 $83,640 
International9,566 15,375 21,718 
AWS23,481 32,151 43,245 
Corporate7,939 10,676 11,678 
Consolidated$72,705 $113,114 $160,281 
Total net additions to property and equipment by segment are as follows (in millions):
 Year Ended December 31,
 201920202021
North America (1)$11,752 $29,889 $37,397 
International (1)3,298 8,072 10,259 
AWS (2)13,058 16,530 22,047 
Corporate1,910 3,485 2,622 
Consolidated$30,018 $57,976 $72,325 
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(1)Includes property and equipment added under finance leases of $3.8 billion, $5.6 billion, and $3.6 billion in 2019, 2020, and 2021, and under build-to-suit lease arrangements of $1.3 billion, $2.7 billion, and $5.6 billion in 2019, 2020, and 2021.
(2)Includes property and equipment added under finance leases of $10.6 billion, $7.7 billion, and $3.5 billion in 2019, 2020, and 2021, and under build-to-suit lease arrangements of $0 million, $130 million, and $51 million in 2019, 2020, and 2021.
U.S. property and equipment, net and operating leases were $69.8 billion, $109.5 billion, and $155.0 billion, in 2019, 2020, and 2021, and non-U.S. property and equipment, net and operating leases were $28.0 billion, $41.2 billion, and $61.3 billion in 2019, 2020, and 2021. 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,
 201920202021
North America$5,106 $6,421 $9,234 
International1,886 2,215 3,022 
AWS8,158 7,603 10,653 
Consolidated$15,150 $16,239 $22,909