Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v2.4.0.6
SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT 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 operations 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 distribution outside the United States. Our International Package reporting segment includes the operations of our Europe, Asia and Americas operating segments.
Supply Chain & Freight
Supply Chain & Freight includes the operations of our forwarding, logistics and freight units, as well as other aggregated businesses. Our forwarding and logistics business provides services in more than 195 countries and territories worldwide, and includes supply chain design and management, freight distribution, customs brokerage, mail and consulting services. UPS Freight offers a variety of less-than-truckload (“LTL”) and truckload (“TL”) services to customers in North America. Other aggregated business units within this segment include Mail Boxes Etc., Inc. (the franchisor of Mail Boxes Etc. and 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 included in the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2011, with certain expenses allocated between the segments using activity-based costing methods. Unallocated assets are comprised primarily of cash, marketable securities and investments in limited partnerships.
Segment information for the three and nine months ended September 30, 2012 and 2011 is as follows (in millions):
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2012
 
2011
 
2012
 
2011
Revenue:
 
 
 
 
 
 
 
U.S. Domestic Package
$
7,861

 
$
7,767

 
$
23,923

 
$
23,047

International Package
2,943

 
3,057

 
8,923

 
9,096

Supply Chain & Freight
2,267

 
2,342

 
6,710

 
6,796

Consolidated
$
13,071

 
$
13,166

 
$
39,556

 
$
38,939

Operating Profit:
 
 
 
 
 
 
 
U.S. Domestic Package
$
129

 
$
1,046

 
$
2,258

 
$
2,923

International Package
449

 
417

 
1,311

 
1,375

Supply Chain & Freight
188

 
203

 
556

 
585

Consolidated
$
766

 
$
1,666

 
$
4,125

 
$
4,883