Annual report pursuant to Section 13 and 15(d)

SEGMENT AND GEOGRAPHIC INFORMATION

v2.4.0.6
SEGMENT AND GEOGRAPHIC INFORMATION
 12 Months Ended
Dec. 31, 2012
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):
 
2012
 
2011
 
2010
Revenue:
 
 
 
 
 
U.S. Domestic Package
$
32,856

 
$
31,717

 
$
29,742

International Package
12,124

 
12,249

 
11,133

Supply Chain & Freight
9,147

 
9,139

 
8,670

Consolidated
$
54,127

 
$
53,105

 
$
49,545

Operating Profit:
 
 
 
 
 
U.S. Domestic Package
$
459

 
$
3,764

 
$
3,238

International Package
869

 
1,709

 
1,831

Supply Chain & Freight
15

 
607

 
572

Consolidated
$
1,343

 
$
6,080

 
$
5,641

Assets:
 
 
 
 
 
U.S. Domestic Package
$
19,934

 
$
19,300

 
$
18,425

International Package
11,248

 
6,729

 
6,228

Supply Chain & Freight
6,610

 
6,588

 
6,283

Unallocated
1,071

 
2,084

 
2,661

Consolidated
$
38,863

 
$
34,701

 
$
33,597

Depreciation and Amortization Expense:
 
 
 
 
 
U.S. Domestic Package
$
1,220

 
$
1,154

 
$
1,174

International Package
475

 
474

 
443

Supply Chain & Freight
163

 
154

 
175

Consolidated
$
1,858

 
$
1,782

 
$
1,792


Revenue by product type for the years ended December 31 is as follows (in millions):
 
2012
 
2011
 
2010
U.S. Domestic Package:
 
 
 
 
 
Next Day Air
$
6,412

 
$
6,229

 
$
5,835

Deferred
3,392

 
3,299

 
2,975

Ground
23,052

 
22,189

 
20,932

Total U.S. Domestic Package
32,856

 
31,717

 
29,742

International Package:
 
 
 
 
 
Domestic
2,531

 
2,628

 
2,365

Export
9,033

 
9,056

 
8,234

Cargo
560

 
565

 
534

Total International Package
12,124

 
12,249

 
11,133

Supply Chain & Freight:
 
 
 
 
 
Forwarding and Logistics
5,977

 
6,103

 
6,022

Freight
2,640

 
2,563

 
2,208

Other
530

 
473

 
440

Total Supply Chain & Freight
9,147

 
9,139

 
8,670

Consolidated
$
54,127

 
$
53,105

 
$
49,545



Geographic information as of, and for the years ended, December 31 is as follows (in millions):
 
2012
 
2011
 
2010
United States:
 
 
 
 
 
Revenue
$
40,428

 
$
39,347

 
$
36,795

Long-lived assets
$
16,262

 
$
16,085

 
$
16,693

International:
 
 
 
 
 
Revenue
$
13,699

 
$
13,758

 
$
12,750

Long-lived assets
$
5,312

 
$
5,220

 
$
5,047

Consolidated:
 
 
 
 
 
Revenue
$
54,127

 
$
53,105

 
$
49,545

Long-lived assets
$
21,574

 
$
21,305

 
$
21,740


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, 2012, 2011 or 2010.