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Segment Information
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Segment Information
SEGMENT INFORMATION
We have organized our operations into two 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 U.S. 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 (loss) is as follows (in millions):
 
  
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2014
 
2013
 
2014
 
2013
North America
 
 
 
 
 
 
 
Net sales
$
11,998

 
$
9,495

 
$
23,856

 
$
18,886

Segment operating expenses (1)
11,560

 
9,086

 
22,856

 
18,020

Segment operating income
$
438

 
$
409

 
$
1,000

 
$
866

International
 
 
 
 
 
 
 
Net sales
$
7,342

 
$
6,209

 
$
15,225

 
$
12,888

Segment operating expenses (1)
7,376

 
6,209

 
15,319

 
12,904

Segment operating income (loss)
$
(34
)
 
$
—

 
$
(94
)
 
$
(16
)
Consolidated
 
 
 
 
 
 
 
Net sales
$
19,340

 
$
15,704

 
$
39,081

 
$
31,774

Segment operating expenses (1)
18,936

 
15,295

 
38,175

 
30,924

Segment operating income
404

 
409

 
906

 
850

Stock-based compensation
(391
)
 
(298
)
 
(711
)
 
(526
)
Other operating income (expense), net
(28
)
 
(32
)
 
(63
)
 
(64
)
Income (loss) from operations
(15
)
 
79

 
132

 
260

Total non-operating income (expense)
(12
)
 
(62
)
 
(39
)
 
(162
)
Benefit (provision) for income taxes
(94
)
 
(13
)
 
(167
)
 
6

Equity-method investment activity, net of tax
(5
)
 
(11
)
 
56

 
(29
)
Net income (loss)
$
(126
)
 
$
(7
)
 
$
(18
)
 
$
75

___________________
(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 
 June 30,
 
Six Months Ended 
 June 30,
 
2014
 
2013
 
2014
 
2013
Net Sales:
 
 
 
Media
$
4,844

 
$
4,397

 
$
10,311

 
$
9,455

Electronics and other general merchandise
13,278

 
10,415

 
26,296

 
20,629

Other (1)
1,218

 
892

 
2,474

 
1,690

 
$
19,340

 
$
15,704

 
$
39,081

 
$
31,774

___________________
(1)
Includes sales from non-retail activities, such as Amazon Web Services (“AWS”), advertising services, and our co-branded credit card agreements.