v2.4.0.6
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2012
SEGMENT INFORMATION

Note 12—SEGMENT INFORMATION

We have organized our operations into two principal segments: North America and International. We present our segment information along the same lines that our Chief Executive Officer reviews our operating results in assessing performance and allocating resources.

We allocate to segment results the operating expenses “Fulfillment,” “Marketing,” “Technology and content,” and “General and administrative,” but exclude from our allocations the portions of these expense lines attributable to stock-based compensation. We do not allocate the line item “Other operating expense (income), net” to our segment operating results. A majority of our costs for “Technology and content” are incurred in the United States and most of these costs are allocated to our North America segment. There are no internal revenue transactions between our reporting segments.

North America

The North America segment consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America-focused websites such as www.amazon.com and www.amazon.ca and include amounts earned from AWS. This segment includes export sales from www.amazon.com and www.amazon.ca.

International

The International segment consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused websites. This segment includes export sales from these internationally based websites (including export sales from these sites to customers in the U.S. and Canada), but excludes export sales from our U.S. and Canadian websites.

 

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

 

     Year Ended December 31,  
     2012     2011     2010  

North America

       

Net sales

    $ 34,813      $ 26,705      $ 18,707   

Segment operating expenses (1)

      33,221        25,772        17,752   
  

 

 

    

 

 

    

 

 

  

Segment operating income

    $ 1,592      $ 933      $ 955   
  

 

 

    

 

 

    

 

 

  

International

       

Net sales

    $ 26,280      $ 21,372      $ 15,497   

Segment operating expenses (1)

      26,204        20,732        14,516   
  

 

 

    

 

 

    

 

 

  

Segment operating income

    $ 76      $ 640      $ 981   
  

 

 

    

 

 

    

 

 

  

Consolidated

       

Net sales

    $ 61,093      $ 48,077      $ 34,204   

Segment operating expenses (1)

      59,425        46,504        32,268   
  

 

 

    

 

 

    

 

 

  

Segment operating income

      1,668        1,573        1,936   

Stock-based compensation

      (833 )      (557 )      (424 ) 

Other operating income (expense), net

      (159 )      (154 )      (106 ) 
  

 

 

    

 

 

    

 

 

  

Income from operations

      676        862        1,406   

Total non-operating income (expense)

      (132 )      72        91   

Provision for income taxes

      (428 )      (291 )      (352 ) 

Equity-method investment activity, net of tax

      (155 )      (12 )      7   
  

 

 

    

 

 

    

 

 

  

Net income (loss)

    $ (39 )    $ 631      $ 1,152   
  

 

 

    

 

 

    

 

 

  

 

(1) Represents operating expenses, excluding stock-based compensation and “Other operating expense (income), net,” which are not allocated to segments.

Net sales of similar products and services were as follows (in millions):

 

     Year Ended December 31,  
     2012      2011      2010  

Net Sales:

   

Consolidated

         

Media

    $ 19,942       $ 17,779       $ 14,888   

Electronics and other general merchandise

      38,628         28,712         18,363   

Other (1)

      2,523         1,586         953   
  

 

 

     

 

 

     

 

 

  

Total consolidated

    $ 61,093       $ 48,077       $ 34,204   
  

 

 

     

 

 

     

 

 

  

 

(1) Includes sales from non-retail activities, such as AWS in the North America segment, advertising services, and our co-branded credit card agreements in both segments.

Net sales attributed to foreign countries are as follows (in millions):

 

     Year Ended December 31,  
     2012      2011      2010  

Germany

    $ 8,732       $ 7,230       $ 5,296   

Japan

      7,800         6,576         5,025   

United Kingdom

      6,478         5,348         3,929   

 

Total assets, property and equipment, net, and total property and equipment additions, by segment, reconciled to consolidated amounts are (in millions):

 

     Year Ended December 31,  
         2012              2011      

North America

      

Total assets

    $ 20,703       $ 16,461   

Property and equipment, net

      5,481         3,413   

Total property and equipment additions

      3,348         2,259   

International

      

Total assets

    $ 11,852       $ 8,817   

Property and equipment, net

      1,579         1,004   

Total property and equipment additions

      969         785   

Consolidated

      

Total assets

    $ 32,555       $ 25,278   

Property and equipment, net

      7,060         4,417   

Total property and equipment additions

      4,317         3,044   

Fixed assets, net, located outside of the U.S. represented less than 10% of consolidated fixed assets, net, for any individual country.

Depreciation expense, by segment, is as follows (in millions):

 

     Year Ended December 31,  
     2012      2011      2010  

North America

    $ 1,229       $ 795       $ 455   

International

      424         239         97   
  

 

 

     

 

 

     

 

 

  

Consolidated

    $ 1,653       $ 1,034       $ 552