UPS 2009 Annual Report Download - page 107

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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):
2009 2008 2007
Revenue:
U.S. Domestic Package .......................................... $28,158 $31,278 $30,985
International Package ............................................ 9,699 11,293 10,281
Supply Chain & Freight .......................................... 7,440 8,915 8,426
Consolidated ............................................... $45,297 $51,486 $49,692
Operating Profit (Loss):
U.S. Domestic Package .......................................... $ 2,138 $ 3,907 $ (1,531)
International Package ............................................ 1,367 1,580 1,831
Supply Chain & Freight .......................................... 296 (105) 278
Consolidated ............................................... $ 3,801 $ 5,382 $ 578
Assets:
U.S. Domestic Package .......................................... $18,572 $18,796 $23,756
International Package ............................................ 5,882 5,723 5,994
Supply Chain & Freight .......................................... 6,620 6,775 7,606
Unallocated .................................................... 809 585 1,686
Consolidated ............................................... $31,883 $31,879 $39,042
Depreciation and Amortization Expense:
U.S. Domestic Package .......................................... $ 1,064 $ 1,031 $ 979
International Package ............................................ 500 588 546
Supply Chain & Freight .......................................... 183 195 220
Consolidated ............................................... $ 1,747 $ 1,814 $ 1,745
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