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Segment Information
3 Months Ended
Mar. 31, 2025
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 infrastructure,” “Sales and 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 costs recorded in “Technology and infrastructure” are incurred in the U.S. and are included in our North America and AWS segments. The majority of infrastructure costs recorded in “Technology and infrastructure” are allocated to the AWS segment based on usage. There are no internal revenue transactions between our reportable segments. Our chief operating decision maker (“CODM”) is our President and Chief Executive Officer. Our CODM regularly reviews consolidated net sales, consolidated operating expenses, and consolidated operating income (loss) by segment. Amounts included in consolidated operating expenses include “Cost of sales,” “Fulfillment,” “Technology and infrastructure,” “Sales and marketing,” “General and administrative,” and “Other operating expense (income), net.” Our CODM manages our business primarily by reviewing consolidated results by segment on a quarterly basis, and using those results along with forecasts and other non-financial information in our annual budgeting process.
North America
The North America segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and advertising and subscription services 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 advertising and subscription services 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
March 31,
20242025
North America
Net sales$86,341 $92,887 
Operating expenses81,358 87,046 
Operating income$4,983 $5,841 
International
Net sales$31,935 $33,513 
Operating expenses31,032 32,496 
Operating income$903 $1,017 
AWS
Net sales$25,037 $29,267 
Operating expenses15,616 17,720 
Operating income$9,421 $11,547 
Consolidated
Net sales$143,313 $155,667 
Operating expenses128,006 137,262 
Operating income15,307 18,405 
Total non-operating income (expense)(2,324)3,274 
Provision for income taxes(2,467)(4,553)
Equity-method investment activity, net of tax(85)
Net income$10,431 $17,127 
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,
20242025
Net Sales:
Online stores (1)$54,670 $57,407 
Physical stores (2)5,202 5,533 
Third-party seller services (3)34,596 36,512 
Advertising services (4)11,824 13,921 
Subscription services (5)10,722 11,715 
AWS25,037 29,267 
Other (6)1,262 1,312 
Consolidated$143,313 $155,667 
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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 media content 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 sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.
(5)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.
(6)Includes sales related to various other offerings (such as shipping services, healthcare services, and certain licensing and distribution of video content) and our co-branded credit card agreements.
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, 2024March 31, 2025
North America (1)$210,120 $210,198 
International (1)69,487 70,231 
AWS (2)155,953 179,386 
Corporate189,334 183,441 
Consolidated$624,894 $643,256 
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(1)North America and International segment assets primarily consist of property and equipment, operating leases, inventory, accounts receivable, and digital video and music content.
(2)AWS segment assets primarily consist of property and equipment, accounts receivable, and operating leases.
Property and equipment, net by segment is as follows (in millions):
 December 31, 2024March 31, 2025
North America$103,041 $102,301 
International25,618 26,170 
AWS110,683 130,919 
Corporate13,323 13,391 
Consolidated$252,665 $272,781 
Total net additions to property and equipment include technology infrastructure assets, which are allocated among the segments based on usage, with the majority allocated to the AWS segment. Total net additions to property and equipment include the effect of non-cash activity such as property and equipment acquired but not yet paid. Total net additions to property and equipment are as follows (in millions):
Three Months Ended
March 31,
 20242025
North America (1)$5,151 $5,096 
International (1)1,109 1,506 
AWS (2)7,925 20,464 
Corporate372 383 
Consolidated$14,557 $27,449 
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(1)Includes property and equipment added under finance leases of $7 million and $54 million in Q1 2024 and Q1 2025.
(2)Includes property and equipment added under finance leases of $35 million and $0 million in Q1 2024 and Q1 2025.
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):
 Three Months Ended
March 31,
 20242025
North America$3,373 $3,530 
International1,054 1,136 
AWS2,839 4,390 
Consolidated$7,266 $9,056