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, 2021
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 – 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.
Supply Chain Solutions
Supply Chain Solutions includes our Forwarding, Logistics, Coyote, Marken, UPS Mail Innovations and other businesses. 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 businesses within this segment include The UPS Store, UPS Capital and Roadie. This segment also included UPS Freight prior to its divestiture, details of which are set out in note 4.
In evaluating financial performance, we focus on operating profit as a segment’s measure of profit or loss. Operating profit is before investment income (expense) and other, interest expense and income tax expense. Certain expenses are allocated between the segments using activity-based costing methods as described in Part I, "Item 7. Supplemental Information - Items Affecting Comparability" section of Management's Discussion and Analysis. 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, 2021, 2020 and 2019 is as follows (in millions):
2021 2020 2019
Revenue:
U.S. Domestic Package $ 60,317  $ 53,499  $ 46,493 
International Package 19,541  15,945  14,220 
Supply Chain Solutions 17,429  15,184  13,381 
Consolidated revenue $ 97,287  $ 84,628  $ 74,094 
Operating Profit:
U.S. Domestic Package $ 6,436  $ 3,891  $ 4,164 
International Package 4,646  3,436  2,657 
Supply Chain Solutions 1,728  357  977 
Consolidated operating profit $ 12,810  $ 7,684  $ 7,798 
Assets:
U.S. Domestic Package $ 35,746  $ 35,067  $ 32,795 
International Package 17,225  15,717  14,044 
Supply Chain Solutions 9,556  9,041  9,045 
Unallocated 6,878  2,583  1,973 
Consolidated assets $ 69,405  $ 62,408  $ 57,857 
Depreciation and Amortization Expense:
U.S. Domestic Package $ 2,058  $ 1,805  $ 1,520 
International Package 685  597  547 
Supply Chain Solutions 210  296  293 
Consolidated depreciation and amortization expense $ 2,953  $ 2,698  $ 2,360 
Revenue by product type for the years ended December 31, 2021, 2020 and 2019 is as follows (in millions):
2021 2020 2019
U.S. Domestic Package:
Next Day Air $ 10,009  $ 8,522  $ 8,479 
Deferred 5,846  5,665  5,180 
Ground 44,462  39,312  32,834 
Total U.S. Domestic Package 60,317  53,499  46,493 
International Package:
Domestic 3,690  3,160  2,836 
Export 15,012  12,159  10,837 
Cargo 839  626  547 
Total International Package 19,541  15,945  14,220 
Supply Chain Solutions:
Forwarding 9,872  6,975  5,867 
Logistics 4,767  4,073  3,435 
Freight 1,064  3,149  3,265 
Other 1,726  987  814 
Total Supply Chain Solutions 17,429  15,184  13,381 
Consolidated revenue $ 97,287  $ 84,628  $ 74,094 
Geographic information for the years ended December 31, 2021, 2020 and 2019 is as follows (in millions):
2021 2020 2019
United States:
Revenue $ 74,376  $ 66,580  $ 58,699 
Long-lived assets $ 29,609  $ 28,354  $ 27,976 
International:
Revenue $ 22,911  $ 18,048  $ 15,395 
Long-lived assets $ 11,098  $ 10,213  $ 9,567 
Consolidated:
Revenue $ 97,287  $ 84,628  $ 74,094 
Long-lived assets $ 40,707  $ 38,567  $ 37,543 
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 provided 10% or more of consolidated revenue for the years ended December 31, 2021, 2020 or 2019. For the years ended December 31, 2021, 2020 and 2019, Amazon.com, Inc. and its affiliates ("Amazon") represented 11.7%, 13.3% and 11.6% of our consolidated revenues, respectively. Substantially all of this revenue was attributed to U.S. Domestic Package. Amazon accounted for approximately 15.5%, 18.1% and 16.9% of accounts receivable, net, included within the consolidated balance sheets as of December 31, 2021, 2020 and 2019, respectively.