v2.4.0.6
Segment Information
 3 Months Ended
Mar. 31, 2013
Segment Information

Note 8 — 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.

 

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

 

     Three Months
Ended March 31,		  
     2013     2012  

North America

     

Net sales

    $ 9,391      $ 7,427   

Segment operating expenses (1)

      8,934        7,078   
  

 

 

    

 

 

  

Segment operating income

    $ 457      $ 349   
  

 

 

    

 

 

  

International

     

Net sales

    $ 6,679      $ 5,758   

Segment operating expenses (1)

      6,695        5,709   
  

 

 

    

 

 

  

Segment operating income (loss)

    $ (16 )    $ 49   
  

 

 

    

 

 

  

Consolidated

     

Net sales

    $ 16,070      $ 13,185   

Segment operating expenses (1)

      15,629        12,787   
  

 

 

    

 

 

  

Segment operating income

      441        398   

Stock-based compensation

      (229 )      (160 ) 

Other operating income (expense), net

      (31 )      (46 ) 
  

 

 

    

 

 

  

Income from operations

      181        192   

Total non-operating income (expense)

      (100 )      (108 ) 

Benefit (provision) for income taxes

      18        (43 ) 

Equity-method investment activity, net of tax

      (17 )      89   
  

 

 

    

 

 

  

Net income

    $ 82      $ 130   
  

 

 

    

 

 

  

 

(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):

 

     Three Months Ended
March 31,		  
     2013      2012  

Net Sales:

      

Media

    $ 5,058       $ 4,710   

Electronics and other general merchandise

      10,214         7,975   

Other (1)

      798         500   
  

 

 

     

 

 

  
   $ 16,070       $ 13,185   
  

 

 

     

 

 

  

 

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