Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.7.0.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2017
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 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 and Logistics 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 less-than-truckload ("LTL") and truckload ("TL") services to customers in North America. Coyote offers truckload brokerage services primarily in the U.S. Marken provides specialized healthcare logistics in Europe. 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 included in the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016, 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 for the three and six months ended June 30, 2017 and 2016 is as follows (in millions):
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2017
 
2016
 
2017
 
2016
Revenue:
 
 
 
 
 
 
 
U.S. Domestic Package
$
9,745

 
$
9,015

 
$
19,280

 
$
18,099

International Package
3,163

 
3,077

 
6,221

 
5,991

Supply Chain & Freight
2,842

 
2,537

 
5,564

 
4,957

Consolidated
$
15,750

 
$
14,629

 
$
31,065

 
$
29,047

Operating Profit:
 
 
 
 
 
 
 
U.S. Domestic Package
$
1,395

 
$
1,233

 
$
2,471

 
$
2,335

International Package
583

 
613

 
1,112

 
1,187

Supply Chain & Freight
238

 
192

 
417

 
339

Consolidated
$
2,216

 
$
2,038

 
$
4,000

 
$
3,861