During this call, we will discuss certain non-GAAP financial measures. In our press release, slides accompanying this webcast and our filings with the SEC, each of which is posted on our IR website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures with comparable GAAP measures. Finally, unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2009. Now I'll turn the call over to Tom.Thomas Szkutak Thanks, Rob. I'll begin with comments on our financial results. Trailing 12-month free cash flow grew 29% to $1.99 billion. Return on invested capital is 34%, down from 42%. ROIC is TTM-free cash flow divided by average total assets minus current liabilities, excluding the current portion of long-term debt over five quarter ends. The combination of common stock and stock-based awards outstanding was 465 million shares compared with 451 million shares. Worldwide revenue grew 41% to $6.57 billion, or 42%, excluding the $48 million unfavorable impact from year-over-year changes in FX. We're grateful to our customers who continue to take advantage of our low prices, fast selection with free shipping offers, including Amazon Prime. Media revenue increased to $2.87 billion, up 18%. EGM revenue increased to $3.49 billion, up 69%, or 70% excluding foreign exchange rates. Worldwide EGM increased to 53% of worldwide sales, up from 45%. Worldwide unit growth was 39%. Active customer accounts exceeded 118 million. Worldwide active seller accounts were more than 2 million, up 19%. Seller units were 32% of total units. Consolidated gross profit grew 42% to $1.61 billion, and gross margin was 24.5%. Beginning this quarter, we no longer allocate Fulfillment costs related to the third-party inventory to cost of sales. Using our prior method, gross margin in Q2 2010 was 24.1%. Now I'll discuss operating expenses, excluding stock-based compensation. Fulfillment, marketing, technology and content in G&A combined was $1.2 billion, or 18.3% of sales, up 50 basis points year-over-year. Fulfillment was $558 million, or 8.5% of revenue, compared with 8.4%. Using the prior method of allocating Fulfillment costs related to third-party inventory to cost of sales, Q2 2010 Fulfillment was 8.1% of revenue. Tech and content was $350 million or 5.3% of revenue, compared with 5.5%. Marketing was $204 million, or 3.1% of revenue, up from 2.7% in the prior year.
Now I'll talk about our segment results and, consistent with prior periods, we do not allocate segments, our stock-based compensation or other operating expense line item.In the North America segment, revenue grew 46% to $3.59 billion. Media revenue grew 15% to $1.32 billion. The sequential decline in quarter-over-quarter growth rates was driven primarily by seasonality in textbook sales and slower rates of growth in video games and video game consoles. EGM revenue grew 76% to $2.09 billion, representing 58% of North America revenues, up from 48%. North America segment operating income increased 61% to $200 million; a 5.6% operating margin. In the International segment, revenue grew 35% to $2.98 billion. Revenue growth was 38%, adjusting for the $54 million year-over-year unfavorable foreign exchange impact during the quarter. Media revenue grew 20% to $1.55 billion, or 21% excluding foreign exchange rates. And EGM revenue grew 59% to $1.4 billion, or 63% excluding foreign exchange rates. EGM now represents 47% of International revenues, up from 40%. International segment operating income increased 15% to $206 million; a 6.9% operating margin. Excluding the unfavorable impact from foreign exchange rates, International segment operating income increased 21%. CSOI grew 34% to $406 million, or 6.2% of revenue; down 35 basis points year-over-year. Excluding the $10 million unfavorable impact from FX, CSOI grew 37%. Unlike CSOI, our GAAP operating income includes stock-based compensation expense and other operating expense. GAAP operating income grew 71% to $270 million, or 4.1% of net sales. Q2 2009 operating income was negatively impacted by a $51 million legal settlement. Read the rest of this transcript for free on seekingalpha.com