Amazon.com 2007 Annual Report Download - page 81

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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. Additionally, we do not allocate the line item “Other operating
expense, net” to our segment operating results. A significant 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.
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,
www.amazon.ca, www.shopbop.com, and www.endless.com; from our Amazon Prime membership program; and
from non-retail activities such as North America-focused Amazon Enterprise Solutions, Amazon Web Services
and marketing, and promotional services. 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 such as www.amazon.co.uk,
www.amazon.de,www.amazon.co.jp,www.amazon.fr, and our Joyo Amazon websites at www.joyo.cn and
www.amazon.cn; from our Amazon Prime membership program; and from non-retail activities such as
internationally focused Amazon Enterprise Solutions, Amazon Web Services and marketing and promotional
services. This segment includes export sales from these internationally based sites (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.
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