Power Pivot Hierarchical Data

Hierarchical. Just saying that makes me feel smart; though, I'm not super sure I spelled it right. Here, I am not talking about the feature that let's you group a set of columns such that you can drop them all into a pivot table as one set. So far as I can tell, that is just some UI candy. I am talking about any situation where your data actually is in a hierarchy. eg: Location (Country -> State -> City) or Products (Category -> SubCategory), etc.