Amazon.com 2013 Annual Report Download - page 76

Download and view the complete annual report

Please find page 76 of the 2013 Amazon.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 86

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86

65
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.
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,
2013 2012 2011
North America
Net sales $ 44,517 $ 34,813 $ 26,705
Segment operating expenses (1) 42,631 33,221 25,772
Segment operating income $ 1,886 $ 1,592 $ 933
International
Net sales $ 29,935 $ 26,280 $ 21,372
Segment operating expenses (1) 29,828 26,204 20,732
Segment operating income $ 107 $ 76 $ 640
Consolidated
Net sales $ 74,452 $ 61,093 $ 48,077
Segment operating expenses (1) 72,459 59,425 46,504
Segment operating income 1,993 1,668 1,573
Stock-based compensation (1,134)(833)(557)
Other operating income (expense), net (114)(159)(154)
Income from operations 745 676 862
Total non-operating income (expense) (239)(132) 72
Provision for income taxes (161)(428)(291)
Equity-method investment activity, net of tax (71)(155)(12)
Net income (loss) $ 274 $ (39) $ 631
___________________
(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,
2013 2012 2011
Net Sales:
Media $ 21,716 $ 19,942 $ 17,779
Electronics and other general merchandise 48,802 38,628 28,712
Other (1) 3,934 2,523 1,586
$ 74,452 $ 61,093 $ 48,077
___________________
(1) Includes sales from non-retail activities, such as AWS, advertising services, and our co-branded credit card agreements.