Annual report pursuant to Section 13 and 15(d)

SEGMENT AND GEOGRAPHIC INFORMATION

v2.4.1.9
SEGMENT AND GEOGRAPHIC INFORMATION
12 Months Ended
Dec. 31, 2014
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 (Indian Subcontinent, Middle East and Africa) 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 international air and ocean freight forwarding, customs brokerage, distribution and post-sales services, and 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 The UPS Store, UPS Capital and UPS Customer 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, 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):
 
2014
 
2013
 
2012
Revenue:
 
 
 
 
 
U.S. Domestic Package
$
35,851

 
$
34,074

 
$
32,856

International Package
12,988

 
12,429

 
12,124

Supply Chain & Freight
9,393

 
8,935

 
9,147

Consolidated
$
58,232

 
$
55,438

 
$
54,127

Operating Profit:
 
 
 
 
 
U.S. Domestic Package
$
2,859

 
$
4,603

 
$
459

International Package
1,677

 
1,757

 
869

Supply Chain & Freight
432

 
674

 
15

Consolidated
$
4,968

 
$
7,034

 
$
1,343

Assets:
 
 
 
 
 
U.S. Domestic Package
$
20,716

 
$
19,648

 
$
19,934

International Package
7,853

 
8,463

 
11,248

Supply Chain & Freight
6,024

 
6,624

 
6,610

Unallocated
878

 
1,477

 
1,071

Consolidated
$
35,471

 
$
36,212

 
$
38,863

Depreciation and Amortization Expense:
 
 
 
 
 
U.S. Domestic Package
$
1,276

 
$
1,229

 
$
1,220

International Package
478

 
473

 
475

Supply Chain & Freight
169

 
165

 
163

Consolidated
$
1,923

 
$
1,867

 
$
1,858


Revenue by product type for the years ended December 31 is as follows (in millions):
 
2014
 
2013
 
2012
U.S. Domestic Package:
 
 
 
 
 
Next Day Air
$
6,581

 
$
6,443

 
$
6,412

Deferred
3,672

 
3,437

 
3,392

Ground
25,598

 
24,194

 
23,052

Total U.S. Domestic Package
35,851

 
34,074

 
32,856

International Package:
 
 
 
 
 
Domestic
2,784

 
2,667

 
2,531

Export
9,586

 
9,166

 
9,033

Cargo
618

 
596

 
560

Total International Package
12,988

 
12,429

 
12,124

Supply Chain & Freight:
 
 
 
 
 
Forwarding and Logistics
5,758

 
5,492

 
5,977

Freight
3,048

 
2,882

 
2,640

Other
587

 
561

 
530

Total Supply Chain & Freight
9,393

 
8,935

 
9,147

Consolidated
$
58,232

 
$
55,438

 
$
54,127



Geographic information as of, and for the years ended, December 31 is as follows (in millions):
 
2014
 
2013
 
2012
United States:
 
 
 
 
 
Revenue
$
43,840

 
$
41,772

 
$
40,428

Long-lived assets
$
15,902

 
$
15,651

 
$
16,262

International:
 
 
 
 
 
Revenue
$
14,392

 
$
13,666

 
$
13,699

Long-lived assets
$
6,105

 
$
6,297

 
$
5,312

Consolidated:
 
 
 
 
 
Revenue
$
58,232

 
$
55,438

 
$
54,127

Long-lived assets
$
22,007

 
$
21,948

 
$
21,574


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, 2014, 2013 or 2012.