Annual report pursuant to Section 13 and 15(d)

SEGMENT AND GEOGRAPHIC INFORMATION

v3.3.1.900
SEGMENT AND GEOGRAPHIC INFORMATION
 12 Months Ended
Dec. 31, 2015
Segments, Geographical Areas [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION
SEGMENT AND GEOGRAPHIC INFORMATION
We report our operations in three segments: U.S. Domestic Package operations, International Package operations and Supply Chain & Freight operations. Package operations represent our most significant business and are broken down into regional operations around the world. Regional operations managers are responsible for both domestic and export products within their geographic area.
U.S. Domestic Package
Domestic Package operations include the time-definite delivery of letters, documents and packages throughout the United States.
International Package
International Package operations include delivery to more than 220 countries and territories worldwide, including shipments wholly outside the United States, as well as shipments with either origin or destination outside the United States. Our International Package reporting segment includes the operations of our Europe, Asia, Americas and ISMEA (Indian Subcontinent, Middle East and Africa) operating segments.
Supply Chain & Freight
Supply Chain & Freight includes our forwarding, logistics, Coyote, UPS Freight and other aggregated business units. Our forwarding, logistics, and Coyote units provide services in more than 195 countries and territories worldwide, and include international air and ocean freight forwarding, customs brokerage, truckload freight brokerage, distribution and post-sales services and mail and consulting services. UPS Freight offers a variety of LTL and TL services to customers in North America. Other aggregated business units within this segment include The UPS Store and UPS Capital.
In evaluating financial performance, we focus on operating profit as a segment’s measure of profit or loss. Operating profit is before investment income, interest expense and income taxes. The accounting policies of the reportable segments are the same as those described in the summary of accounting policies (see note 1), with certain expenses allocated between the segments using activity-based costing methods. Unallocated assets are comprised primarily of cash, marketable securities and certain investment partnerships.
Segment information as of, and for the years ended, December 31 is as follows (in millions):
 
2015
 
2014
 
2013
Revenue:
 
 
 
 
 
U.S. Domestic Package
$
36,747

 
$
35,851

 
$
34,074

International Package
12,149

 
12,988

 
12,429

Supply Chain & Freight
9,467

 
9,393

 
8,935

Consolidated
$
58,363

 
$
58,232

 
$
55,438

Operating Profit:
 
 
 
 
 
U.S. Domestic Package
$
4,767

 
$
2,859

 
$
4,603

International Package
2,137

 
1,677

 
1,757

Supply Chain & Freight
764

 
432

 
674

Consolidated
$
7,668

 
$
4,968

 
$
7,034

Assets:
 
 
 
 
 
U.S. Domestic Package
$
21,701

 
$
20,708

 
$
19,052

International Package
7,858

 
7,850

 
8,460

Supply Chain & Freight
7,728

 
6,004

 
6,564

Unallocated
1,024

 
878

 
1,477

Consolidated
$
38,311

 
$
35,440

 
$
35,553

Depreciation and Amortization Expense:
 
 
 
 
 
U.S. Domestic Package
$
1,408

 
$
1,276

 
$
1,229

International Package
475

 
478

 
473

Supply Chain & Freight
201

 
169

 
165

Consolidated
$
2,084

 
$
1,923

 
$
1,867


Revenue by product type for the years ended December 31 is as follows (in millions):
 
2015
 
2014
 
2013
U.S. Domestic Package:
 
 
 
 
 
Next Day Air
$
6,570

 
$
6,581

 
$
6,443

Deferred
3,903

 
3,672

 
3,437

Ground
26,274

 
25,598

 
24,194

Total U.S. Domestic Package
36,747

 
35,851

 
34,074

International Package:
 
 
 
 
 
Domestic
2,425

 
2,784

 
2,667

Export
9,092

 
9,586

 
9,166

Cargo
632

 
618

 
596

Total International Package
12,149

 
12,988

 
12,429

Supply Chain & Freight:
 
 
 
 
 
Forwarding and Logistics
5,900

 
5,758

 
5,492

Freight
2,881

 
3,048

 
2,882

Other
686

 
587

 
561

Total Supply Chain & Freight
9,467

 
9,393

 
8,935

Consolidated
$
58,363

 
$
58,232

 
$
55,438



Geographic information as of, and for the years ended, December 31 is as follows (in millions):
 
2015
 
2014
 
2013
United States:
 
 
 
 
 
Revenue
$
45,309

 
$
43,840

 
$
41,772

Long-lived assets
$
18,196

 
$
15,902

 
$
15,651

International:
 
 
 
 
 
Revenue
$
13,054

 
$
14,392

 
$
13,666

Long-lived assets
$
5,828

 
$
6,105

 
$
6,297

Consolidated:
 
 
 
 
 
Revenue
$
58,363

 
$
58,232

 
$
55,438

Long-lived assets
$
24,024

 
$
22,007

 
$
21,948


Long-lived assets include property, plant and equipment, pension and postretirement benefit assets, long-term investments, goodwill and intangible assets.
No countries outside of the United States, nor any individual customers, provided 10% or more of consolidated revenue for the years ended December 31, 2015, 2014 or 2013.