Annual report pursuant to Section 13 and 15(d)

SEGMENT AND GEOGRAPHIC INFORMATION

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SEGMENT AND GEOGRAPHIC INFORMATION
12 Months Ended
Dec. 31, 2019
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 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 UPS Mail Innovations units provide services in more than 200 countries and territories worldwide and include international air and ocean freight forwarding, customs brokerage, distribution and post-sales services, mail and consulting services. UPS Freight offers a variety of less-than-truckload and truckload services to customers in North America. Coyote offers truckload brokerage services primarily in the United States. Marken is a global provider of supply chain solutions to the healthcare and life sciences industry. 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 (expense) and other, interest expense and income taxes. The accounting policies of the segments are the same as those described in the "Supplemental Information - Items Affecting Comparability" section of Management's Discussion and Analysis, with certain expenses allocated between the segments using activity-based costing methods. As we operate an integrated, global multimodal network, we evaluate many of our capital expenditure decisions at a network level. Accordingly, expenditures on property, plant and equipment by segment are not presented. Unallocated assets are comprised primarily of cash, marketable securities and certain investment partnerships. In 2018, we changed the segment allocation methodology for certain shared assets. All prior periods have been recast to reflect this change in methodology.
Segment information for the years ended December 31, 2019, 2018 and 2017 is as follows (in millions):
 
2019
 
2018
 
2017
Revenue:
 
 
 
 
 
U.S. Domestic Package
$
46,493

 
$
43,593

 
$
40,761

International Package
14,220

 
14,442

 
13,342

Supply Chain & Freight
13,381

 
13,826

 
12,482

Consolidated
$
74,094

 
$
71,861

 
$
66,585

Operating Profit:
 
 
 
 
 
U.S. Domestic Package
$
4,164

 
$
3,643

 
$
4,303

International Package
2,657

 
2,529

 
2,429

Supply Chain & Freight
977

 
852

 
797

Consolidated
$
7,798

 
$
7,024

 
$
7,529

Assets:
 
 
 
 
 
U.S. Domestic Package
$
32,795

 
$
28,216

 
$
25,449

International Package
14,044

 
12,070

 
10,361

Supply Chain & Freight
9,045

 
8,411

 
8,267

Unallocated
1,973

 
1,319

 
1,497

Consolidated
$
57,857

 
$
50,016

 
$
45,574

Depreciation and Amortization Expense:
 
 
 
 
 
U.S. Domestic Package
$
1,520

 
$
1,375

 
$
1,479

International Package
547

 
526

 
509

Supply Chain & Freight
293

 
306

 
294

Consolidated
$
2,360

 
$
2,207

 
$
2,282


Revenue by product type for the years ended December 31, 2019, 2018 and 2017 is as follows (in millions):
 
2019
 
2018
 
2017
U.S. Domestic Package:
 
 
 
 
 
Next Day Air
$
8,479

 
$
7,618

 
$
7,088

Deferred
5,180

 
4,752

 
4,422

Ground
32,834

 
31,223

 
29,251

Total U.S. Domestic Package
46,493

 
43,593

 
40,761

International Package:
 
 
 
 
 
Domestic
2,836

 
2,874

 
2,646

Export
10,837

 
10,973

 
10,170

Cargo
547

 
595

 
526

Total International Package
14,220

 
14,442

 
13,342

Supply Chain & Freight:
 
 
 
 
 
Forwarding
5,867

 
6,580

 
5,674

Logistics
3,435

 
3,234

 
3,017

Freight
3,265

 
3,218

 
3,000

Other
814

 
794

 
791

Total Supply Chain & Freight
13,381

 
13,826

 
12,482

Consolidated
$
74,094

 
$
71,861

 
$
66,585



Geographic information for the years ended December 31, 2019, 2018 and 2017 is as follows (in millions):
 
2019
 
2018
 
2017
United States:
 
 
 
 
 
Revenue
$
58,699

 
$
56,115

 
$
52,080

Long-lived assets
$
27,976

 
$
24,918

 
$
21,141

International:
 
 
 
 
 
Revenue
$
15,395

 
$
15,746

 
$
14,505

Long-lived assets
$
9,567

 
$
8,577

 
$
7,966

Consolidated:
 
 
 
 
 
Revenue
$
74,094

 
$
71,861

 
$
66,585

Long-lived assets
$
37,543

 
$
33,495

 
$
29,107


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 provided 10% or more of consolidated revenue for the years ended December 31, 2019, 2018 or 2017. For the year ended December 31, 2019, Amazon.com, Inc. and its affiliates ("Amazon") represented 11.6% of our consolidated revenues. Substantially all of this revenue was attributed to our U.S. Domestic Package segment. As of December 31, 2019, Amazon accounted for approximately 16.9% of accounts receivable, net, included within the consolidated balance sheets. No single customer represented 10% or more of our consolidated revenues for the years ended December 31, 2018 or 2017.