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Segment Information
6 Months Ended
Jun. 30, 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
June 30,
Six Months Ended
June 30,
2024202520242025
North America
Net sales$90,033 $100,068 $176,374 $192,955 
Operating expenses84,968 92,551 166,326 179,597 
Operating income$5,065 $7,517 $10,048 $13,358 
International
Net sales$31,663 $36,761 $63,598 $70,274 
Operating expenses31,390 35,267 62,422 67,763 
Operating income$273 $1,494 $1,176 $2,511 
AWS
Net sales$26,281 $30,873 $51,318 $60,140 
Operating expenses16,947 20,713 32,563 38,433 
Operating income$9,334 $10,160 $18,755 $21,707 
Consolidated
Net sales$147,977 $167,702 $291,290 $323,369 
Operating expenses133,305 148,531 261,311 285,793 
Operating income14,672 19,171 29,979 37,576 
Total non-operating income (expense)573 1,686 (1,751)4,960 
Provision for income taxes(1,767)(2,678)(4,234)(7,231)
Equity-method investment activity, net of tax(15)(78)(14)
Net income$13,485 $18,164 $23,916 $35,291 
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,
2024202520242025
Net Sales:
Online stores (1)$55,392 $61,485 $110,062 $118,892 
Physical stores (2)5,206 5,595 10,408 11,128 
Third-party seller services (3)36,201 40,348 70,797 76,860 
Advertising services (4)12,771 15,694 24,595 29,615 
Subscription services (5)10,866 12,208 21,588 23,923 
AWS26,281 30,873 51,318 60,140 
Other (6)1,260 1,499 2,522 2,811 
Consolidated$147,977 $167,702 $291,290 $323,369 
____________________________
(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, which are included in property and equipment, net, net additions, and the depreciation and amortization expense on these assets, are allocated among the segments based on usage, with the majority allocated to the AWS segment. Usage of technology infrastructure assets by the North America and International segments, and the related allocation of total net additions, can fluctuate on a quarter-to-quarter basis, and is affected by seasonality, peak periods, new product or service offerings, and other factors.
Total segment assets reconciled to consolidated amounts are as follows (in millions):
 December 31, 2024June 30, 2025
North America (1)$210,120 $224,304 
International (1)69,487 78,096 
AWS (2)155,953 194,295 
Corporate189,334 185,475 
Consolidated$624,894 $682,170 
___________________
(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, 2024June 30, 2025
North America$103,041 $113,249 
International25,618 29,679 
AWS110,683 140,636 
Corporate13,323 14,052 
Consolidated$252,665 $297,616 
Total net additions to property and equipment include technology infrastructure assets and 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
June 30,
Six Months Ended
June 30,
 2024202520242025
North America (1)$4,929 $11,272 $10,080 $16,368 
International (1)1,128 2,531 2,237 4,037 
AWS (2)12,757 16,043 20,682 36,507 
Corporate380 915 752 1,298 
Consolidated$19,194 $30,761 $33,751 $58,210 
___________________
(1)Includes property and equipment added under finance leases of $135 million and $21 million in Q2 2024 and Q2 2025, and $142 million and $75 million for the six months ended June 30, 2024 and 2025.
(2)Includes property and equipment added under finance leases of $46 million and $916 million in Q2 2024 and Q2 2025, and $81 million and $916 million for the six months ended June 30, 2024 and 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
June 30,
Six Months Ended
June 30,
 2024202520242025
North America$3,517 $3,742 $6,890 $7,272 
International1,049 1,180 2,103 2,316 
AWS3,078 4,844 5,917 9,234 
Consolidated$7,644 $9,766 $14,910 $18,822