Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.21.2
SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
We report our operations in three segments: U.S. Domestic Package, International Package and Supply Chain Solutions. 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. Supply Chain Solutions comprises the results of non-reportable operating segments that do not meet the quantitative and qualitative criteria of a reportable segment as defined under ASC Topic 280 – Segment Reporting.
U.S. Domestic Package
U.S. 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 our operations in Europe, Asia, Americas and ISMEA (Indian Subcontinent, Middle East and Africa).
Supply Chain Solutions
Supply Chain Solutions includes Forwarding, Logistics, Coyote, Marken, UPS Mail Innovations 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. 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, specializing in clinical trials logistics. Other aggregated business units within this segment include The UPS Store and UPS Capital. This segment also included UPS Freight prior to its divestiture, details of which are set out in note 6.
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 tax expense. Certain expenses are allocated between the segments using activity-based costing methods as described in the audited, consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020, and in the "Results of Operations - Segment Review" section of Management's Discussion and Analysis included in this report.
Results of operations for the three and nine months ended September 30, 2021 and 2020 are as follows (in millions):
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2021 2020 2021 2020
Revenue:
U.S. Domestic Package $ 14,208  $ 13,225  $ 42,620  $ 37,755 
International Package 4,720  4,087  14,144  11,175 
Supply Chain Solutions 4,256  3,926  12,752  10,802 
Consolidated revenue $ 23,184  $ 21,238  $ 69,516  $ 59,732 
Operating Profit:
U.S. Domestic Package $ 1,407  $ 1,098  $ 4,333  $ 2,644 
International Package 1,051  966  3,320  2,288 
Supply Chain Solutions 438  299  1,266  715 
Consolidated operating profit $ 2,896  $ 2,363  $ 8,919  $ 5,647