UPS 2004 Annual Report Download - page 67

Notes to consolidated financial statements 65
Segment information as of, and for the years ended, December
31 is as follows (in millions):
2004 2003 2002
Revenue:
U.S. domestic package $ 26,610 $ 25,022 $ 23,924
International package 6,762 5,561 4,680
Non-package 3,210 2,902 2,668
Consolidated $ 36,582 $ 33,485 $ 31,272
Operating Profit:
U.S. domestic package $ 3,345 $ 3,272 $ 3,576
International package 1,121 709 322
Non-package 523 464 198
Consolidated $ 4,989 $ 4,445 $ 4,096
Assets:
U.S. domestic package $ 16,978 $ 16,271 $ 15,173
International package 4,728 4,287 3,271
Non-package 6,380 6,038 6,245
Unallocated 4,940 3,138 2,179
Consolidated $ 33,026 $ 29,734 $ 26,868
Non-package operating profit included $112, $114, and $112
million for 2004, 2003, and 2002, respectively, of intersegment
profit, with a corresponding amount of operating expense,
which reduces operating profit, included in the U.S. domestic
package segment.
Revenue by product type for the years ended December 31 is
as follows (in millions):
2004 2003 2002
U.S. domestic package:
Next Day Air $ 6,040 $ 5,580 $ 5,349
Deferred 3,161 2,982 2,868
Ground 17,409 16,460 15,707
Total U.S. domestic package 26,610 25,022 23,924
International package:
Domestic 1,346 1,134 943
Export 4,944 4,001 3,276
Cargo 472 426 461
Total International package 6,762 5,561 4,680
Non-package:
UPS Supply Chain Solutions 2,346 2,126 1,969
Other 864 776 699
Total Non-package 3,210 2,902 2,668
Consolidated $36,582 $33,485 $ 31,272
Geographic information as of, and for the years ended,
December 31 is as follows (in millions):
2004 2003 2002
U.S.:
Revenue $ 28,035 $ 26,968 $ 26,284
Long-lived assets $ 15,971 $ 15,634 $ 14,640
International:
Revenue $ 8,547 $ 6,517 $ 4,988
Long-lived assets $ 3,975 $ 3,567 $ 2,874
Consolidated:
Revenue $ 36,582 $ 33,485 $ 31,272
Long-lived assets $ 19,946 $ 19,201 $ 17,514
Revenue, for geographic disclosure, is based on the location in
which service originates. Long-lived assets include property,
plant and equipment, prepaid pension costs, long-term invest-
ments, goodwill, and intangible assets.
NOTE 13. OTHER OPERATING EXPENSES
The major components of other operating expenses for the years
ended December 31 are as follows (in millions):
2004 2003 2002
Repairs and maintenance $ 1,005 $ 955 $ 873
Depreciation and amortization 1,543 1,549 1,464
Purchased transportation 2,059 1,828 1,665
Fuel 1,416 1,050 952
Other occupancy 752 730 653
Restructuring charge and
related expenses — 9106
Other expenses 3,902 3,591 3,523
$ 10,677 $ 9,712 $ 9,236
In the fourth quarter of 2002, we initiated a restructuring
program to combine UPS Freight Services and the UPS Logistics
Group into a single business unit (“UPS Supply Chain Solutions”).
In connection with this restructuring program, we also recorded
certain costs related to the integration of activities between UPS
Capital and First International Bank. The program was designed
to facilitate business growth, streamline management decision-
making, reduce the cost structure, and provide higher levels of
service to our customers. Costs of the program included
employee severance costs, asset impairments, costs associated
with the consolidation of facilities, and other costs directly
related to the restructuring program. As of December 31, 2003,
the restructuring program was substantially complete.