UPS 2010 Annual Report Download - page 111

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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):
2010 2009 2008
Revenue:
U.S. Domestic Package .......................................... $29,742 $28,158 $31,278
International Package ............................................ 11,133 9,699 11,293
Supply Chain & Freight .......................................... 8,670 7,440 8,915
Consolidated ............................................... $49,545 $45,297 $51,486
Operating Profit (Loss):
U.S. Domestic Package .......................................... $ 3,373 $ 2,138 $ 3,907
International Package ............................................ 1,904 1,367 1,580
Supply Chain & Freight .......................................... 597 296 (105)
Consolidated ............................................... $ 5,874 $ 3,801 $ 5,382
Assets:
U.S. Domestic Package .......................................... $18,425 $18,572 $18,796
International Package ............................................ 6,228 5,882 5,723
Supply Chain & Freight .......................................... 6,283 6,620 6,775
Unallocated .................................................... 2,661 809 585
Consolidated ............................................... $33,597 $31,883 $31,879
Depreciation and Amortization Expense:
U.S. Domestic Package .......................................... $ 1,174 $ 1,064 $ 1,031
International Package ............................................ 443 500 588
Supply Chain & Freight .......................................... 175 183 195
Consolidated ............................................... $ 1,792 $ 1,747 $ 1,814
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