This compares to earnings … So balancing those two is going to dictate where we land. We will attempt to answer questions of a long-term strategic nature. We're seeing improvement on the pricing and the revenue quality side. Our efforts in the United States are having a positive impact. That's clearly the U.S. small package business is going to grow. They include an increase in benefits expense between $150 million and $200 million due to additional union headcounts over last year, including our new employees hired in the second quarter. It’s not about volume share growth, it’s about value share growth. So hopefully, COVID has settled down. [Operator instructions] It is now my pleasure to turn the floor over to your host, Mr. Scott Childress, investor relations officer. Q3 2020 United Parcel Service, Inc. Earnings Conference Call. And lastly, we faced both planned and unplanned expense pressures in the U.S. The final piece of our strategy, innovation-driven, comes down to being better, not bigger. We've got 20% of that. Further, revenue growth in our International and Supply Chain & Freight segments was the highest quarterly growth we’ve seen in nearly three years. Overall, we are pleased with our results in the quarter. Our peak preparation starts with ensuring the safety of our people and our customers. Thanks, Scott, for the question. But for modeling purposes, I would use $4 billion. And this is all about productivity and going after those big buckets of costs that we need to turn down to add up to a billion. Thank you, Carol. That’s a meaningful way to improve the operating margin. Our transformation efforts are vitally important to our ongoing success. Thanks very much. Unless stated otherwise, our comments will refer to adjusted results which excludes transformation cost. In the U.S., average daily volume is anticipated to increase by high single digits and revenue growth to be above volume growth. Our next question will come from the line of Brandon Oglenski of Barclays. And that’s just a hint of what’s to come. Our peak preparation starts with ensuring the safety of our people and customers. And just one modeling, your fuel expense was higher sequentially, significantly, and was there anything in there that we should consider? We are also investing in training, on topics including unconscious bias and diversity and inclusion, to ensure our actions match our values. Carol, I don’t know if you have anything to add. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. So you can do the math of what that just might translate into savings. But for next year, we're going to sweat the investments that we've made. We will do. We have this initiative called UPS Next, and UPS Next was all about driving the innovation in the company. Before we begin, I want to remind you that some of the comments we'll make today are forward-looking statements within the federal securities laws and address our expectations for the future performance for operating results of our company. During the quarter, we continued to flex our network to capture market opportunities and better position UPS for the long term. Mr. Wadewitz, your line is open. It's all about removing friction from the customer experience and serving customers the way they want to be served. When you think about Transformation 2.0, think about that attacking nonoperating expense, in other words, general overhead. We’ll land something around there or maybe a little less. If I think about SMB as a percentage of our total business in the United States, it’s grown from 23% last year to now 24% this year. So we’re going to be resetting the goals to make that happen to make them much more return-focused. As a reminder from our last call, outside of our five core principles, everything else is under review. You’ve heard us talk about Fastest Ground Ever, it doesn’t just stop with that. And a lot in the international side depends on the international backdrop. Turning to costs. As we also think about where the demand is going for next-day air in the United States versus where the demand is exploding outside of the United States, we have this opportunity to optimize our aircraft globally. So we'll turn to Transformation 2.0, which the first wave of Transformation 2.0 was the VSAP that we announced this fall. These farms are strategically located in Louisville, Kentucky, and Venlo, The Netherlands and are good distribution practice certified. They include an increase in benefits expense between $150 million and $200 million due to additional union headcounts over last year, including the new employees we hired in the second quarter. We anticipate some industry capacity constraints through the period. I would like to welcome everyone to the UPS Investor Relations Third Quarter 2020 Earnings Conference Call. Jordan Alliger -- Goldman Sachs -- Analyst. I mean, is that — when you put all the puts and takes together, is that the baseline we should be thinking about? Thanks, Carol, and good morning. UPS Healthcare spans all reporting segments, has world-class technology, deep expertise and the most sophisticated suite of services in the industry. But there are more activities that will come in Transformation 2.0. Thank you. Yeah, hi, good morning everyone. We’re leaning in on the wildly important areas of our business and tackling challenges head on. But interestingly, when we looked at the performance of our SMBs across all four of those segments, we saw each of them grow. As a result, we saw revenue per piece improve sequentially in the U.S. from what we reported in the first two quarters of this year. Historical Financials 40.1 KB. When did that equation could have shift? What is — one more question, to the next caller, please. The webcast of today's call, along with the reconciliation of non-GAAP financial measures, are available on the UPS Investor Relations website. Our next question will come from the line of Scott Group of Wolfe Research. Read the transcript of the call here. Next, in the U.S., SMB growth accelerated, and our revenue quality actions began yielding results. Well, when we looked at what the UPS Next team was working on, they were working on exactly the same projects as other groups within the company. And if that’s the case, over what timeframe can you drive enough profitable share gains from SMBs that would allow you to walk from some of the lower margin business? B2C mix moderated to 31% of total volume and B2B improved, but was still down 3.2% year-over-year. In our International segment, we expect the year-over-year profit growth rate to be in the high teens. Carol, do you want to? And the last question will come from the line of Tom Wadewitz of UBS. Operating profit was $302 million, an increase of 18% year over year, with multiple units contributing and which highlights the diversity within the Supply Chain and Freight portfolio. Diluted earnings per share was $2.28, up 10.1% from the same period last year. I will be your conference facilitator today. I don't know, Brian, what we're thinking about? Yeah, thanks for your question. Good morning, and thank you for taking my question. Revenue growth from our DAP program exceeded our expectations, as we added some 150,000 new accounts and several new partners in the quarter. And within platform, or the platform segment, that's where GAAP falls. Jairam Nathan -- Daiwa Capital Markets -- Analyst. Now at the end of the second quarter, we said that we thought that the operating margin for the back half of the year could be 100 basis points lower than the operating margin in the first half of the year. That concludes our call. Thanks, Carol, and good morning. And the growth came from our medium-sized businesses as well as our platform businesses. [Operator Instructions]. We’ve got the seasonality, which you know, year-over-year, we normally go about down 200 basis points on a sequential Q3 to Q4 standpoint because of peak. And next week, we will complete our fastest ground ever initiative eight months ahead of plan. I've also helped our team build out a value-creating strategic and financial framework. Operating margin was down 220 basis points year-over-year. I said, "Nando, how many reports do we ask our operators to work every week? Please go ahead. It’s — you cant pull the band aid off because you could hurt the customer experience, and we don’t want to do that. We have improved ground transit times between millions of ZIP codes, and we will be at parity or better than the competition in 20 of the 25 most populated U.S. markets, and customers have noticed. Whether or not that sustains is really a subject of market demand. We understand that healthcare logistics isn't just about the package. So we're also shifting the penetration, which is really about how we want to drive revenue quality in our business. Looking at Supply Chain & Freight. We can do a good conference in June of '21, and then we'll lay this all out for you. Volume increased globally by double-digits year-over-year. 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