Annual report pursuant to Section 13 and 15(d)

SEGMENT AND GEOGRAPHIC INFORMATION

v2.4.0.8
SEGMENT AND GEOGRAPHIC INFORMATION
 12 Months Ended
Dec. 31, 2013
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 operations 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 and Americas operating segments.
Supply Chain & Freight
Supply Chain & Freight includes our forwarding and logistics operations, UPS Freight and other aggregated business units. Our forwarding and logistics business provides services in more than 195 countries and territories worldwide, and includes supply chain design and management, freight distribution, customs brokerage, 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 Mail Boxes Etc. (the franchisor of Mail Boxes Etc. and 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, 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):
 
2013
 
2012
 
2011
Revenue:
 
 
 
 
 
U.S. Domestic Package
$
34,074

 
$
32,856

 
$
31,717

International Package
12,429

 
12,124

 
12,249

Supply Chain & Freight
8,935

 
9,147

 
9,139

Consolidated
$
55,438

 
$
54,127

 
$
53,105

Operating Profit:
 
 
 
 
 
U.S. Domestic Package
$
4,603

 
$
459

 
$
3,764

International Package
1,757

 
869

 
1,709

Supply Chain & Freight
674

 
15

 
607

Consolidated
$
7,034

 
$
1,343

 
$
6,080

Assets:
 
 
 
 
 
U.S. Domestic Package
$
19,648

 
$
19,934

 
$
19,300

International Package
8,463

 
11,248

 
6,729

Supply Chain & Freight
6,624

 
6,610

 
6,588

Unallocated
1,477

 
1,071

 
2,084

Consolidated
$
36,212

 
$
38,863

 
$
34,701

Depreciation and Amortization Expense:
 
 
 
 
 
U.S. Domestic Package
$
1,229

 
$
1,220

 
$
1,154

International Package
473

 
475

 
474

Supply Chain & Freight
165

 
163

 
154

Consolidated
$
1,867

 
$
1,858

 
$
1,782


Revenue by product type for the years ended December 31 is as follows (in millions):
 
2013
 
2012
 
2011
U.S. Domestic Package:
 
 
 
 
 
Next Day Air
$
6,443

 
$
6,412

 
$
6,229

Deferred
3,437

 
3,392

 
3,299

Ground
24,194

 
23,052

 
22,189

Total U.S. Domestic Package
34,074

 
32,856

 
31,717

International Package:
 
 
 
 
 
Domestic
2,667

 
2,531

 
2,628

Export
9,166

 
9,033

 
9,056

Cargo
596

 
560

 
565

Total International Package
12,429

 
12,124

 
12,249

Supply Chain & Freight:
 
 
 
 
 
Forwarding and Logistics
5,492

 
5,977

 
6,103

Freight
2,882

 
2,640

 
2,563

Other
561

 
530

 
473

Total Supply Chain & Freight
8,935

 
9,147

 
9,139

Consolidated
$
55,438

 
$
54,127

 
$
53,105



Geographic information as of, and for the years ended, December 31 is as follows (in millions):
 
2013
 
2012
 
2011
United States:
 
 
 
 
 
Revenue
$
41,772

 
$
40,428

 
$
39,347

Long-lived assets
$
15,651

 
$
16,262

 
$
16,085

International:
 
 
 
 
 
Revenue
$
13,666

 
$
13,699

 
$
13,758

Long-lived assets
$
6,297

 
$
5,312

 
$
5,220

Consolidated:
 
 
 
 
 
Revenue
$
55,438

 
$
54,127

 
$
53,105

Long-lived assets
$
21,948

 
$
21,574

 
$
21,305


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, 2013, 2012 or 2011.