Amazon.com 2015 Annual Report Download - page 77

Download and view the complete annual report

Please find page 77 of the 2015 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 90

  • 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
  • 87
  • 88
  • 89
  • 90

67
Note 11—SEGMENT INFORMATION
Beginning in the first quarter of 2015, we changed our reportable segments to North America, International, and AWS.
These segments reflect the way the Company evaluates its business performance and manages its operations.
We allocate to segment results the operating expenses “Fulfillment,” “Marketing,” “Technology and content,” 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. We exclude from
our allocations the portions of these operating expense lines attributable to stock-based compensation. We do not allocate the
line item “Other operating expense (income), net” to our segment operating results. There are no internal revenue transactions
between our reportable segments.
North America
The North America segment consists primarily 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, and
www.amazon.com.mx. This segment includes export sales from these websites.
International
The International segment consists primarily of amounts earned from retail sales of consumer products (including from
sellers) and subscriptions through internationally-focused websites such as www.amazon.com.au, www.amazon.com.br,
www.amazon.cn, www.amazon.fr, www.amazon.de, www.amazon.in, www.amazon.it, www.amazon.co.jp, www.amazon.nl,
www.amazon.es, and www.amazon.co.uk. This segment includes export sales from these internationally-focused websites
(including export sales from these sites to customers in the U.S., Mexico, and Canada), but excludes export sales from our
North American websites.
AWS
The AWS segment consists of amounts earned from global sales of compute, storage, database, and other AWS service
offerings for start-ups, enterprises, government agencies, and academic institutions.