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SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended
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Dec. 31, 2022
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, the Indian sub-continent, the Middle East, Africa, Canada and Latin America. 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 businesses 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 and Bomi Group provide supply chain solutions to the healthcare and life sciences industry. Other businesses within this segment include The UPS Store, UPS Capital, Roadie, and Delivery Solutions. 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. These activity-based costing methods require us to make estimates that impact the amount of each expense category that is attributed to each segment. Changes in these estimates directly impact the amount of expense allocated to each segment, and therefore the operating profit of each reporting segment. Our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses. In 2021, we updated our cost allocation methodology for aircraft engine maintenance expense to better align with aircraft utilization by segment, resulting in an immaterial reallocation of expense from our U.S. Domestic Package segment to our International Package segment. 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, 2022, 2021 and 2020 is as follows (in millions):
| 2022 |  | 2021 |  | 2020
Revenue: |  |  |  |  |
U.S. Domestic Package | $ | 64,209 |  |  | $ | 60,317 |  |  | $ | 53,499 |
International Package | 19,698 |  |  | 19,541 |  |  | 15,945 |
Supply Chain Solutions | 16,431 |  |  | 17,429 |  |  | 15,184 |
Consolidated revenue | $ | 100,338 |  |  | $ | 97,287 |  |  | $ | 84,628 |
Operating Profit: |  |  |  |  |
U.S. Domestic Package | $ | 6,997 |  |  | $ | 6,436 |  |  | $ | 3,891 |
International Package | 4,326 |  |  | 4,646 |  |  | 3,436 |
Supply Chain Solutions | 1,771 |  |  | 1,728 |  |  | 357 |
Consolidated operating profit | $ | 13,094 |  |  | $ | 12,810 |  |  | $ | 7,684 |
Assets: |  |  |  |  |
U.S. Domestic Package | $ | 38,303 |  |  | $ | 35,746 |  |  | $ | 35,067 |
International Package | 17,670 |  |  | 17,225 |  |  | 15,717 |
Supply Chain Solutions | 10,407 |  |  | 9,556 |  |  | 9,041 |
Unallocated | 4,744 |  |  | 6,878 |  |  | 2,583 |
Consolidated assets | $ | 71,124 |  |  | $ | 69,405 |  |  | $ | 62,408 |
Depreciation and Amortization Expense: |  |  |  |  |
U.S. Domestic Package | $ | 2,173 |  |  | $ | 2,058 |  |  | $ | 1,805 |
International Package | 761 |  |  | 685 |  |  | 597 |
Supply Chain Solutions | 254 |  |  | 210 |  |  | 296 |
Consolidated depreciation and amortization expense | $ | 3,188 |  |  | $ | 2,953 |  |  | $ | 2,698 |
Revenue by product type for the years ended December 31, 2022, 2021 and 2020 is as follows (in millions):
| 2022 |  | 2021 |  | 2020
U.S. Domestic Package: |  |  |  |  |
Next Day Air | $ | 10,699 |  |  | $ | 10,009 |  |  | $ | 8,522 |
Deferred | 5,968 |  |  | 5,846 |  |  | 5,665 |
Ground | 47,542 |  |  | 44,462 |  |  | 39,312 |
Total U.S. Domestic Package | 64,209 |  |  | 60,317 |  |  | 53,499 |
International Package: |  |  |  |  |
Domestic | 3,346 |  |  | 3,690 |  |  | 3,160 |
Export | 15,341 |  |  | 15,012 |  |  | 12,159 |
Cargo | 1,011 |  |  | 839 |  |  | 626 |
Total International Package | 19,698 |  |  | 19,541 |  |  | 15,945 |
Supply Chain Solutions: |  |  |  |  |
Forwarding | 8,943 |  |  | 9,872 |  |  | 6,975 |
Logistics | 5,351 |  |  | 4,767 |  |  | 4,073 |
Freight | — |  |  | 1,064 |  |  | 3,149 |
Other | 2,137 |  |  | 1,726 |  |  | 987 |
Total Supply Chain Solutions | 16,431 |  |  | 17,429 |  |  | 15,184 |
Consolidated revenue | $ | 100,338 |  |  | $ | 97,287 |  |  | $ | 84,628 |
Geographic information for the years ended December 31, 2022, 2021 and 2020 is as follows (in millions):
| 2022 |  | 2021 |  | 2020
United States: |  |  |  |  |
Revenue | $ | 78,110 |  |  | $ | 74,376 |  |  | $ | 66,580 |
Long-lived assets | $ | 32,002 |  |  | $ | 29,609 |  |  | $ | 28,354 |
International: |  |  |  |  |
Revenue | $ | 22,228 |  |  | $ | 22,911 |  |  | $ | 18,048 |
Long-lived assets | $ | 12,991 |  |  | $ | 11,098 |  |  | $ | 10,213 |
Consolidated: |  |  |  |  |
Revenue | $ | 100,338 |  |  | $ | 97,287 |  |  | $ | 84,628 |
Long-lived assets | $ | 44,993 |  |  | $ | 40,707 |  |  | $ | 38,567 |
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, 2022, 2021 or 2020. For the years ended December 31, 2022, 2021 and 2020, Amazon.com, Inc. and its affiliates ("Amazon") represented 11.3%, 11.7% and 13.3% of our consolidated revenues, respectively. Substantially all of this revenue was attributed to U.S. Domestic Package. Amazon accounted for approximately 15.5%, 15.5% and 18.1% of accounts receivable, net, included within the consolidated balance sheets as of December 31, 2022, 2021 and 2020, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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