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, 2023
Segments, Geographical Areas [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION SEGMENT AND GEOGRAPHIC INFORMATION
We have two reportable segments: U.S. Domestic Package and International Package, which are together referred to as our global small package operations. Our remaining businesses are reported as Supply Chain Solutions. Global small 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.
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 200 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, the Indian sub-continent, Middle East and Africa (together "EMEA"), Canada and Latin America (together "Americas") and Asia.
Supply Chain Solutions
Supply Chain Solutions includes our Forwarding, Logistics, digital and other businesses. Our Forwarding and Logistics businesses provide services in more than 200 countries and territories worldwide and include international air and ocean freight forwarding, truckload brokerage, customs brokerage, mail services, healthcare logistics, distribution and post-sales services. Our digital businesses leverage technology to enable a range of on-demand services such as same-day delivery, end-to-end return services and integrated supply chain and high-value shipment insurance solutions.
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. These activity-based costing methods require us to make estimates that impact the amount of each expense category that is attributed to each segment. Changes in these estimates directly impact the amount of expense allocated to each segment, and therefore the operating profit of each reporting segment. Our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses. In 2021, we updated our cost allocation methodology for aircraft engine maintenance expense to better align with aircraft utilization by segment, resulting in an immaterial reallocation of expense from our U.S. Domestic Package segment to our International Package segment.
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 and marketable securities.
Segment information for the years ended December 31, 2023, 2022 and 2021 is as follows (in millions):
2023 2022 2021
Revenue:
U.S. Domestic Package $ 59,958  $ 64,209  $ 60,317 
International Package 17,831  19,698  19,541 
Supply Chain Solutions 13,169  16,431  17,429 
Consolidated revenue $ 90,958  $ 100,338  $ 97,287 
Operating Profit:
U.S. Domestic Package $ 5,076  $ 6,997  $ 6,436 
International Package 3,231  4,326  4,646 
Supply Chain Solutions 834  1,771  1,728 
Consolidated operating profit $ 9,141  $ 13,094  $ 12,810 
Assets:
U.S. Domestic Package $ 38,368  $ 38,303  $ 35,746 
International Package 17,587  17,670  17,225 
Supply Chain Solutions 11,245  10,407  9,556 
Unallocated 3,657  4,744  6,878 
Consolidated assets $ 70,857  $ 71,124  $ 69,405 
Depreciation and Amortization Expense:
U.S. Domestic Package $ 2,290  $ 2,173  $ 2,058 
International Package 742  761  685 
Supply Chain Solutions 334  254  210 
Consolidated depreciation and amortization expense $ 3,366  $ 3,188  $ 2,953 
Revenue by product type for the years ended December 31, 2023, 2022 and 2021 is as follows (in millions):
2023 2022 2021
U.S. Domestic Package:
Next Day Air $ 9,894  $ 10,699  $ 10,009 
Deferred 5,093  5,968  5,846 
Ground 44,971  47,542  44,462 
Total U.S. Domestic Package 59,958  64,209  60,317 
International Package:
Domestic 3,144  3,346  3,690 
Export 14,003  15,341  15,012 
Cargo 684  1,011  839 
Total International Package 17,831  19,698  19,541 
Supply Chain Solutions:
Forwarding 5,534  8,943  9,872 
Logistics 5,927  5,351  4,767 
Freight —  —  1,064 
Other 1,708  2,137  1,726 
Total Supply Chain Solutions 13,169  16,431  17,429 
Consolidated revenue $ 90,958  $ 100,338  $ 97,287 
Geographic information for the years ended December 31, 2023, 2022 and 2021 is as follows (in millions):
2023 2022 2021
United States:
Revenue $ 71,749  $ 78,110  $ 74,376 
Long-lived assets $ 33,301  $ 32,002  $ 29,609 
International:
Revenue $ 19,209  $ 22,228  $ 22,911 
Long-lived assets $ 13,687  $ 12,991  $ 11,098 
Consolidated:
Revenue $ 90,958  $ 100,338  $ 97,287 
Long-lived assets $ 46,988  $ 44,993  $ 40,707 
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 accounted for 10% or more of consolidated revenue for the years ended December 31, 2023, 2022 or 2021. For the years ended December 31, 2023, 2022 and 2021, Amazon.com, Inc. and its affiliates ("Amazon") represented 11.8%, 11.3% and 11.7% of our consolidated revenues, respectively. Substantially all of this revenue was attributed to U.S. Domestic Package. Amazon accounted for approximately 15.8%, 15.5% and 15.5% of Accounts receivable, net, included within our consolidated balance sheets as of December 31, 2023, 2022 and 2021, respectively.