Amazon.com 2003 Annual Report Download - page 81

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
North America
The North America segment consists of amounts earned from retail sales of consumer products through
www.amazon.com and www.amazon.ca (including from third-party sellers), from North America focused
Syndicated Stores and mail-order catalogs, and from non-retail activities such as North America focused
Merchant.com, marketing, and promotional agreements.
International
The International segment consists of amounts earned from retail sales of consumer products through
internationally focused websites, such as www.amazon.co.uk, www.amazon.de, www.amazon.fr,and
www.amazon.co.jp (including from third-party sellers), from internationally focused Syndicated Stores and from
non-retail activities such as internationally focused marketing and promotional agreements. This segment
includes export sales from www.amazon.co.uk, www.amazon.de, www.amazon.fr,andwww.amazon.co.jp
(including export sales from these sites to customers in the U.S. and Canada), but excludes export sales from
www.amazon.com and www.amazon.ca.
Information on reportable segments and reconciliation to consolidated net income (loss) is as follows (in
thousands):
Year Ended 2003:
North America International Consolidated
Net sales ...................................... $3,258,413 $2,005,286 $5,263,699
Grossprofit.................................... 866,664 390,504 1,257,168
Segment operating income ........................ 283,045 78,193 361,238
Stock-based compensation ........................ (87,751)
Amortization of other intangibles ................... (2,752)
Restructuring-related and other .................... (140)
Total non-operating expenses, net .................. (234,877)
Equity in losses of equity-method investees, net ....... (436)
Netincome .................................... $ 35,282
Year Ended 2002:
North America International Consolidated
Net sales ...................................... $2,761,457 $1,171,479 $3,932,936
Grossprofit.................................... 740,985 251,633 992,618
Segment operating income ........................ 179,667 435 180,102
Stock-based compensation ........................ (68,927)
Amortization of other intangibles ................... (5,478)
Restructuring-related and other .................... (41,573)
Total non-operating expenses, net .................. (209,888)
Equity in losses of equity-method investees, net ....... (4,169)
Cumulative effect of change in accounting principle .... 801
Netloss ....................................... $ (149,132)
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