Segment Information (Tables)

3 Months Ended

Mar. 31, 2022

Information on Reportable Segments and Reconciliation to Consolidated Net Income

Information on reportable segments and reconciliation to consolidated net income (loss) is as follows (in millions):


	Three Months Ended March 31,
		2021		2022
North America
Net sales		$	64,366	$	69,244
Operating expenses		60,916		70,812
Operating income (loss)		$	3,450	$	(1,568)

International
Net sales		$	30,649	$	28,759
Operating expenses		29,397		30,040
Operating income (loss)		$	1,252	$	(1,281)

AWS
Net sales		$	13,503	$	18,441
Operating expenses		9,340		11,923
Operating income		$	4,163	$	6,518

Consolidated
Net sales		$	108,518	$	116,444
Operating expenses		99,653		112,775
Operating income		8,865		3,669
Total non-operating income (expense)		1,403		(8,934)
Benefit (provision) for income taxes		(2,156)		1,422
Equity-method investment activity, net of tax		(5)		(1)
Net income (loss)		$	8,107	$	(3,844)

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 March 31,
		2021		2022
Net Sales:
Online stores (1)		$	52,901	$	51,129
Physical stores (2)		3,920		4,591
Third-party seller services (3)		23,709		25,335
Subscription services (4)		7,580		8,410
Advertising services (5)		6,381		7,877
AWS		13,503		18,441
Other (6)		524		661
Consolidated		$	108,518	$	116,444

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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.