Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.5.0.2
SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2016
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 U.S. export and U.S. import shipments. 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 the operations of 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 North American and 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 less-than-truckload (“LTL”) and truckload (“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 included in the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2015, with certain expenses allocated between the segments using activity-based costing methods.
Segment information for the three and nine months ended September 30, 2016 and 2015 is as follows (in millions):
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2016
 
2015
 
2016
 
2015
Revenue:
 
 
 
 
 
 
 
U.S. Domestic Package
$
9,289

 
$
8,860

 
$
27,388

 
$
26,482

International Package
3,024

 
2,959

 
9,015

 
8,974

Supply Chain & Freight
2,615

 
2,418

 
7,572

 
6,853

Consolidated
$
14,928

 
$
14,237

 
$
43,975

 
$
42,309

Operating Profit:
 
 
 
 
 
 
 
U.S. Domestic Package
$
1,252

 
$
1,258

 
$
3,587

 
$
3,483

International Package
576

 
507

 
1,763

 
1,557

Supply Chain & Freight
206

 
219

 
545

 
577

Consolidated
$
2,034

 
$
1,984

 
$
5,895

 
$
5,617