Annual report pursuant to Section 13 and 15(d)

SEGMENT AND GEOGRAPHIC INFORMATION

v3.6.0.2
SEGMENT AND GEOGRAPHIC INFORMATION
 12 Months Ended
Dec. 31, 2016
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, Marken, UPS Mail Innovations, 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, 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 and other, 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):
 
2016
 
2015
 
2014
Revenue:
 
 
 
 
 
U.S. Domestic Package
$
38,301

 
$
36,747

 
$
35,851

International Package
12,350

 
12,149

 
12,988

Supply Chain & Freight
10,255

 
9,467

 
9,393

Consolidated
$
60,906

 
$
58,363

 
$
58,232

Operating Profit:
 
 
 
 
 
U.S. Domestic Package
$
3,017

 
$
4,767

 
$
2,859

International Package
2,044

 
2,137

 
1,677

Supply Chain & Freight
406

 
764

 
432

Consolidated
$
5,467

 
$
7,668

 
$
4,968

Assets:
 
 
 
 
 
U.S. Domestic Package
$
23,191

 
$
21,701

 
$
20,708

International Package
8,193

 
7,858

 
7,850

Supply Chain & Freight
7,806

 
7,728

 
6,004

Unallocated
1,187

 
1,024

 
878

Consolidated
$
40,377

 
$
38,311

 
$
35,440

Depreciation and Amortization Expense:
 
 
 
 
 
U.S. Domestic Package
$
1,479

 
$
1,408

 
$
1,276

International Package
491

 
475

 
478

Supply Chain & Freight
254

 
201

 
169

Consolidated
$
2,224

 
$
2,084

 
$
1,923


Revenue by product type for the years ended December 31 is as follows (in millions):
 
2016
 
2015
 
2014
U.S. Domestic Package:
 
 
 
 
 
Next Day Air
$
6,752

 
$
6,570

 
$
6,581

Deferred
4,082

 
3,903

 
3,672

Ground
27,467

 
26,274

 
25,598

Total U.S. Domestic Package
38,301

 
36,747

 
35,851

International Package:
 
 
 
 
 
Domestic
2,441

 
2,425

 
2,784

Export
9,374

 
9,092

 
9,586

Cargo
535

 
632

 
618

Total International Package
12,350

 
12,149

 
12,988

Supply Chain & Freight:
 
 
 
 
 
Forwarding and Logistics
6,793

 
5,900

 
5,758

Freight
2,736

 
2,881

 
3,048

Other
726

 
686

 
587

Total Supply Chain & Freight
10,255

 
9,467

 
9,393

Consolidated
$
60,906

 
$
58,363

 
$
58,232



Geographic information as of, and for the years ended, December 31 is as follows (in millions):
 
2016
 
2015
 
2014
United States:
 
 
 
 
 
Revenue
$
48,013

 
$
45,309

 
$
43,840

Long-lived assets
$
19,253

 
$
18,196

 
$
15,902

International:
 
 
 
 
 
Revenue
$
12,893

 
$
13,054

 
$
14,392

Long-lived assets
$
5,898

 
$
5,828

 
$
6,105

Consolidated:
 
 
 
 
 
Revenue
$
60,906

 
$
58,363

 
$
58,232

Long-lived assets
$
25,151

 
$
24,024

 
$
22,007


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, 2016, 2015 or 2014.