XML 31 R19.htm IDEA: XBRL DOCUMENT v3.22.4
Segment Information
 12 Months Ended
Dec. 31, 2022
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 content,” “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 infrastructure costs are allocated to the AWS segment based on usage. The majority of the remaining non-infrastructure technology costs are incurred in the U.S. and are allocated to our North America segment. There are no internal revenue transactions between our reportable segments. These segments reflect the way our chief operating decision maker evaluates the Company’s business performance and manages its operations.
North America
The North America segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions 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 subscriptions 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 (loss) is as follows (in millions):
  
Year Ended December 31,
 202020212022
North America
Net sales$236,282 $279,833 $315,880 
Operating expenses227,631 272,562 318,727 
Operating income (loss)$8,651 $7,271 $(2,847)
International
Net sales$104,412 $127,787 $118,007 
Operating expenses103,695 128,711 125,753 
Operating income (loss)$717 $(924)$(7,746)
AWS
Net sales$45,370 $62,202 $80,096 
Operating expenses31,839 43,670 57,255 
Operating income$13,531 $18,532 $22,841 
Consolidated
Net sales$386,064 $469,822 $513,983 
Operating expenses363,165 444,943 501,735 
Operating income22,899 24,879 12,248 
Total non-operating income (expense)1,279 13,272 (18,184)
Benefit (provision) for income taxes(2,863)(4,791)3,217 
Equity-method investment activity, net of tax16 4 (3)
Net income (loss)$21,331 $33,364 $(2,722)
Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):
  
Year Ended December 31,
 202020212022
Net Sales:
Online stores (1)$197,346 $222,075 $220,004 
Physical stores (2)16,227 17,075 18,963 
Third-party seller services (3)80,461 103,366 117,716 
Subscription services (4)25,207 31,768 35,218 
Advertising services (5)19,773 31,160 37,739 
AWS45,370 62,202 80,096 
Other (6)1,680 2,176 4,247 
Consolidated$386,064 $469,822 $513,983 
___________________
(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 product 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 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.
(5)Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.
(6)Includes sales related to various other offerings, such as certain licensing and distribution of video content and shipping services, and our co-branded credit card agreements.
Net sales are attributed to countries primarily based on country-focused online and physical stores or, for AWS purposes, the selling entity. Net sales attributed to countries that represent a significant portion of consolidated net sales are as follows (in millions):
 Year Ended December 31,
 202020212022
United States$263,520 $314,006 $356,113 
Germany29,565 37,326 33,598 
United Kingdom26,483 31,914 30,074 
Japan20,461 23,071 24,396 
Rest of world46,035 63,505 69,802 
Consolidated$386,064 $469,822 $513,983 
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,
 202020212022
North America (1)$108,405 $161,255 $185,268 
International (1)42,212 57,983 64,666 
AWS (2)47,574 63,835 88,491 
Corporate123,004 137,476 124,250 
Consolidated$321,195 $420,549 $462,675 
___________________
(1)North America and International segment assets primarily consist of property and equipment, operating leases, inventory, and accounts receivable.
(2)AWS segment assets primarily consist of property and equipment and accounts receivable.
Property and equipment, net by segment is as follows (in millions):
 December 31,
 202020212022
North America$54,912 $83,640 $90,076 
International15,375 21,718 23,347 
AWS32,151 43,245 60,324 
Corporate10,676 11,678 12,968 
Consolidated$113,114 $160,281 $186,715 
Total net additions to property and equipment by segment are as follows (in millions):
 Year Ended December 31,
 202020212022
North America (1)$29,889 $37,397 $23,682 
International (1)8,072 10,259 6,711 
AWS (2)16,530 22,047 27,755 
Corporate3,485 2,622 2,688 
Consolidated$57,976 $72,325 $60,836 
___________________
(1)Includes property and equipment added under finance leases of $5.6 billion, $3.6 billion, and $422 million in 2020, 2021, and 2022, and under build-to-suit lease arrangements of $2.7 billion, $5.6 billion, and $3.2 billion in 2020, 2021, and 2022.
(2)Includes property and equipment added under finance leases of $7.7 billion, $3.5 billion, and $253 million in 2020, 2021, and 2022, and under build-to-suit lease arrangements of $130 million, $51 million, and $20 million in 2020, 2021, and 2022.
U.S. property and equipment, net and operating leases were $109.5 billion, $155.0 billion, and $180.0 billion, as of December 31, 2020, 2021, and 2022, and non-U.S. property and equipment, net and operating leases were $41.2 billion, $61.3 billion, and $72.9 billion as of December 31, 2020, 2021, and 2022. Except for the U.S., property and equipment, net and operating leases in any single country were less than 10% of consolidated property and equipment, net and operating leases.
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):
 Year Ended December 31,
 202020212022
North America$6,421 $9,234 $11,565 
International2,215 3,022 3,483 
AWS7,603 10,653 9,876 
Consolidated$16,239 $22,909 $24,924