Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - Fourth Quarter
(unaudited)
 
Three Months Ended
 
 
 
December 31
 
 
2018
2017
Change
% Change
(amounts in millions, except per share data)
 
 
 
 
Statement of Income Data:
 
 
 
 
Revenue:
 
 
 
 
  U.S. Domestic Package
$
12,575

$
11,833

$
742

6.3
 %
  International Package
3,829

3,721

108

2.9
 %
  Supply Chain & Freight
3,444

3,421

23

0.7
 %
  Total revenue
19,848

18,975

873

4.6
 %
 
 
 
 
 
Operating expenses:
 
 
 
 
  Compensation and benefits
10,151

9,545

606

6.3
 %
  Other
7,693

7,367

326

4.4
 %
  Total operating expenses
17,844

16,912

932

5.5
 %
 
 
 
 
 
Operating profit:
 
 
 
 
  U.S. Domestic Package
999

1,087

(88
)
(8.1
)%
  International Package
781

735

46

6.3
 %
  Supply Chain & Freight
224

241

(17
)
(7.1
)%
  Total operating profit
2,004

2,063

(59
)
(2.9
)%
 
 
 
 
 
Other income (expense):
 
 
 
 
 Other pension income (expense)
(1,343
)
(586
)
(757
)
129.2
 %
  Investment income
30

23

7

30.4
 %
  Interest expense
(148
)
(129
)
(19
)
14.7
 %
  Total other income (expense)
(1,461
)
(692
)
(769
)
111.1
 %
 
 
 
 
 
Income before income taxes
543

1,371

(828
)
(60.4
)%
 
 
 
 
 
Income tax expense
90

275

(185
)
(67.3
)%
 
 
 
 
 
Net income
$
453

$
1,096

$
(643
)
(58.7
)%
 
 
 
 
 
Net income as a percentage of revenue
2.3
%
5.8
%
 
 
 
 
 
 
 
Per share amounts:
 
 
 
 
  Basic earnings per share
$
0.52

$
1.26

$
(0.74
)
(58.7
)%
  Diluted earnings per share
$
0.52

$
1.26

$
(0.74
)
(58.7
)%
 
 
 
 
 
Weighted-average shares outstanding:
 
 
 
 
  Basic
865

867

(2
)
(0.2
)%
  Diluted
869

872

(3
)
(0.3
)%
 
 
 
 
 
As adjusted income data:
 
 
 
 
Operating profit:
 
 
 
 
  U.S. Domestic Package (1)
$
999

$
1,087

$
(88
)
(8.1
)%
  International Package (1)
781

735

46

6.3
 %
  Supply Chain & Freight (1)
224

241

(17
)
(7.1
)%
       Total operating profit (1)
2,004

2,063

(59
)
(2.9
)%
 
 
 
 
 
Total other income (expense) (1)
166

108

58

53.7
 %
Income before income taxes (1)
$
2,170

$
2,171

$
(1
)
0.0
 %
Net income (2)
$
1,690

$
1,445

$
245

17.0
 %
 
 
 
 
 
Basic earnings per share (2)
$
1.95

$
1.67

$
0.28

16.8
 %
Diluted earnings per share (2)
$
1.94

$
1.66

$
0.28

16.9
 %
(1) Fourth quarter 2018 total other income (expense) and consolidated income before income taxes excludes the impact of an increase in pension expense due to a mark-to-market loss recognized outside of a 10% corridor of $1.627 billion.

Fourth quarter 2017 total other income (expense) and consolidated income before income taxes excludes the impact of an increase in pension expense due to a mark-to-market loss recognized outside of a 10% corridor of $800 million.

(2) Fourth quarter 2018 net income and earnings per share amounts exclude the after-tax impact of the adjustment described in (1), which decreased net income by $1.237 billion.

Fourth quarter 2017 net income and earnings per share amounts exclude the after-tax impact of the adjustment described in (1), which decreased net income by $607 million. 2017 net income also excludes income tax benefits of $258 million attributable to the 2017 Tax Cuts and Job Acts.

Certain prior year amounts have been reclassified to conform to the current year presentation.





United Parcel Service, Inc.
Selected Operating Data - Fourth Quarter
(unaudited)
 
Three Months Ended
 
 
 
December 31
 
 
2018
2017
Change
% Change
 
 
 
 
 
Revenue (in millions):
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
$
2,108

$
1,902

$
206

10.8
 %
   Deferred
1,537

1,431

106

7.4
 %
   Ground
8,930

8,500

430

5.1
 %
      Total U.S. Domestic Package
12,575

11,833

742

6.3
 %
International Package:
 
 
 
 
   Domestic
780

737

43

5.8
 %
   Export
2,900

2,839

61

2.1
 %
   Cargo and Other
149

145

4

2.8
 %
      Total International Package
3,829

3,721

108

2.9
 %
Supply Chain & Freight:
 
 
 
 
   Forwarding
1,644

1,627

17

1.0
 %
   Forwarding and Logistics
878

823

55

6.7
 %
   Freight
721

760

(39
)
(5.1
)%
   Other
201

211

(10
)
(4.7
)%
      Total Supply Chain & Freight
3,444

3,421

23

0.7
 %
Consolidated
$
19,848

$
18,975

$
873

4.6
 %
 
 
 
 
 
Consolidated volume (in millions)
1,535

1,515

20

1.3
 %
 
 
 
 
 
Operating weekdays
62

63

(1
)
(1.6
)%
 
 
 
 
 
Average Daily Package Volume (in thousands):
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
1,789

1,660

129

7.8
 %
   Deferred
1,962

1,872

90

4.8
 %
   Ground
17,482

17,076

406

2.4
 %
      Total U.S. Domestic Package
21,233

20,608

625

3.0
 %
International Package:
 
 
 
 
   Domestic
1,912

1,853

59

3.2
 %
   Export
1,623

1,585

38

2.4
 %
      Total International Package
3,535

3,438

97

2.8
 %
Consolidated
24,768

24,046

722

3.0
 %
 
 
 
 
 
Average Revenue Per Piece:
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
$
19.01

$
18.18

$
0.83

4.6
 %
   Deferred
12.64

12.14

0.50

4.1
 %
   Ground
8.24

7.90

0.34

4.3
 %
      Total U.S. Domestic Package
9.55

9.11

0.44

4.8
 %
International Package:
 
 
 
 
   Domestic
6.58

6.31

0.27

4.3
 %
   Export
28.82

28.43

0.39

1.4
 %
      Total International Package
16.79

16.51

0.28

1.7
 %
Consolidated
$
10.59

$
10.17

$
0.42

4.1
 %


Certain prior year amounts have been reclassified to conform to the current year presentation.















United Parcel Service, Inc.
Supplemental Analysis of Currency and UPS Freight


Currency Neutral Revenue Per Piece
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
 
Currency
 
 
 
December 31
 
 
 
Neutral
 
2018
 
2017
 
% Change
 
Currency
 
2018*
 
% Change
Average Revenue Per Piece:
 
 
 
 
 
 
 
 
 
 
 
International Package:
 
 
 
 
 
 
 
 
 
 
 
   Domestic
$
6.58

 
$
6.31

 
4.3
 %
 
$
0.22

 
$
6.80

 
7.8
 %
   Export
28.82

 
28.43

 
1.4
 %
 
0.63

 
29.45

 
3.6
 %
      Total International Package
$
16.79

 
$
16.51

 
1.7
 %
 
$
0.42

 
$
17.21

 
4.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
10.59

 
$
10.17

 
4.1
 %
 
$
0.05

 
$
10.64

 
4.6
 %
*Amounts adjusted for period over period foreign currency exchange rate and hedging differences
 
 
 
 
 
 
 
 
 
 
 
Currency Neutral Revenue
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
 
Currency
 
 
 
December 31
 
 
 
Neutral
 
2018
 
2017
 
% Change
 
Currency
 
2018*
 
% Change
Revenue (in millions):
 
 
 
 
 
 
 
 
 
 
 
  U.S. Domestic Package
$
12,575

 
$
11,833

 
6.3
 %
 
$
—

 
$
12,575

 
6.3
 %
  International Package
3,829

 
3,721

 
2.9
 %
 
92

 
3,921

 
5.4
 %
  Supply Chain & Freight
3,444

 
3,421

 
0.7
 %
 
24

 
3,468

 
1.4
 %
  Total revenue
$
19,848

 
$
18,975

 
4.6
 %
 
$
116

 
$
19,964

 
5.2
 %
*Amounts adjusted for period over period foreign currency exchange rate and hedging differences
 
 
 
 
 
 
 
 
 
 
 
Currency Neutral Operating Profit
(unaudited)
 
Three Months Ended
 
 
 
 
 
Currency
 
December 31
 
 
 
 
 
Neutral
 
2018
 
2017
 
% Change
 
Currency
 
2018*
 
% Change
Operating Profit (in millions):
 
 
 
 
 
 
 
 
 
 
  U.S. Domestic Package
$
999

 
$
1,087

 
(8.1
)%
 
$
—

 
$
999

 
(8.1
)%
  International Package
781

 
735

 
6.3
 %
 
26

 
807

 
9.8
 %
  Supply Chain & Freight
224

 
241

 
(7.1
)%
 
—

 
224

 
(7.1
)%
  Total operating profit
$
2,004

 
$
2,063

 
(2.9
)%
 
$
26

 
$
2,030

 
(1.6
)%
* Amounts adjusted for period over period foreign currency exchange rate and hedging differences


UPS Freight Selected Operating Data - Fourth Quarter
(unaudited)
 
Three Months Ended
 
 
 
December 31
 
 
 
2018
2017
Change
% Change
LTL revenue (in millions)
$
584

$
655

$
(71
)
(10.8
)%
LTL revenue per LTL hundredweight
$
26.36

$
24.65

$
1.71

6.9
 %
 
 
 
 
 
LTL shipments (in thousands)
2,010

2,471

(461
)
(18.7
)%
LTL shipments per day (in thousands)
32.4

40.5

(8.1
)
(20.0
)%
 
 
 
 
 
LTL gross weight hauled (in millions of pounds)
2,214

2,657

(443
)
(16.7
)%
LTL weight per shipment (in pounds)
1,102

1,075

27

2.5
 %
 
 
 
 
 
Operating weekdays
62

61

1

1.6
 %









United Parcel Service, Inc.
Detail of Other Operating Expenses - Fourth Quarter
(unaudited)
 
Three Months Ended
 
 
 
 
 
December 31
 
 
 
 
 
2018
 
2017
 
Change
 
% Change
(in millions)
 
 
 
 
 
 
 
Repairs and Maintenance
$
438

 
$
420

 
$
18

 
4.3
 %
Depreciation and Amortization
545

 
594

 
(49
)
 
(8.2
)%
Purchased Transportation
3,839

 
3,705

 
134

 
3.6
 %
Fuel
958

 
817

 
141

 
17.3
 %
Other Occupancy
359

 
310

 
49

 
15.8
 %
Other Expenses
1,554

 
1,521

 
33

 
2.2
 %
Total Other Operating Expenses
$
7,693

 
$
7,367

 
$
326

 
4.4
 %

Detail of Other Pension Income (Expense) - Fourth Quarter
(unaudited)
 
Three Months Ended
 
 
 
 
 
December 31
 
 
 
 
(in millions)
2018
 
2017
 
Change
 
% Change
U.S. Domestic Package
$
227

 
$
164

 
$
63

 
38.4
%
International Package
20

 
19

 
1

 
5.3
%
Supply Chain & Freight
37

 
31

 
6

 
19.4
%
Total other pension income (expense)
$
284

 
$
214

 
$
70

 
32.7
%
 
 
 
 
 
 
 
 
Pension Mark-to-Market Loss
$
(1,627
)
 
$
(800
)
 
$
(827
)
 
103.4
%
Total other pension income (expense)
$
(1,343
)
 
$
(586
)
 
$
(757
)
 
129.2
%
 
 
 
 
 
 
 
 

Earnings Per Share and Share Data - Fourth Quarter
(unaudited)

 
Three Months Ended
 
December 31
 
2018
 
2017
(amounts in millions, except per share data)
 
 
 
Numerator:
 
 
 
    Net income
$
453

 
$
1,096

 
 
 
 
Denominator:
 
 
 
    Weighted-average shares
859

 
861

    Deferred compensation obligations
1

 
1

    Vested portion of restricted units
5

 
5

Denominator for basic earnings per share
865

 
867

 
 
 
 
Effect of dilutive securities:
 
 
 
    Restricted units
4

 
4

    Stock options
—

 
1

Denominator for diluted earnings per share
869

 
872

 
 
 
 
Basic earnings per share
$
0.52

 
$
1.26

 
 
 
 
Diluted earnings per share
$
0.52

 
$
1.26

 
 
 
 
 
 
 
 
Detail of shares outstanding as of December 31, 2018:
 
 
 
 
 
 
 
Class A shares
163

 
 
Class B shares
695

 
 
    Total shares outstanding
858

 
 

Certain prior year amounts have been reclassified to conform to the current year presentation.




United Parcel Service, Inc.
Selected Financial Data - Year to Date
(unaudited)

 
Twelve Months Ended
 
 
 
December 31,
 
 
2018
2017
Change
% Change
(amounts in millions, except per share data)
 
 
 
 
Statement of Income Data:
 
 
 
 
Revenue:
 
 
 
 
  U.S. Domestic Package
$
43,593

$
40,761

$
2,832

6.9
 %
  International Package
14,442

13,342

1,100

8.2
 %
  Supply Chain & Freight
13,826

12,482

1,344

10.8
 %
  Total revenue
71,861

66,585

5,276

7.9
 %
 
 
 
 
 
Operating expenses:
 
 
 
 
  Compensation and benefits
37,235

34,577

2,658

7.7
 %
  Other
27,602

24,479

3,123

12.8
 %
  Total operating expenses
64,837

59,056

5,781

9.8
 %
 
 
 
 
 
Operating profit:
 
 
 
 
  U.S. Domestic Package
3,643

4,303

(660
)
(15.3
)%
  International Package
2,529

2,429

100

4.1
 %
  Supply Chain & Freight
852

797

55

6.9
 %
  Total operating profit
7,024

7,529

(505
)
(6.7
)%
 
 
 
 
 
Other income (expense):
 
 
 
 
Other pension income (expense)
(490
)
(11
)
(479
)
N/A

  Investment income
90

72

18

25.0
 %
  Interest expense
(605
)
(453
)
(152
)
33.6
 %
  Total other income (expense)
(1,005
)
(392
)
(613
)
156.4
 %
 
 
 
 
 
Income before income taxes
6,019

7,137

(1,118
)
(15.7
)%
 
 
 
 
 
Income tax expense
1,228

2,232

(1,004
)
(45.0
)%
 
 
 
 
 
Net income
$
4,791

$
4,905

$
(114
)
(2.3
)%
 
 
 
 
 
Net income as a percentage of revenue
6.7
%
7.4
%
 
 
 
 
 
 
 
Per share amounts
 
 
 
 
  Basic earnings per share
$
5.53

$
5.63

$
(0.10
)
(1.8
)%
  Diluted earnings per share
$
5.51

$
5.61

$
(0.10
)
(1.8
)%
 
 
 
 
 
Weighted-average shares outstanding
 
 
 
 
  Basic
866

871

(5
)
(0.6
)%
  Diluted
870

875

(5
)
(0.6
)%
 
 
 
 
 
As adjusted income data:
 
 
 
 
Operating profit:
 
 
 
 
  U.S. Domestic Package (1)
$
3,878

$
4,303

$
(425
)
(9.9
)%
  International Package (1)
2,605

2,429

176

7.2
 %
  Supply Chain & Freight (1)
901

797

104

13.0
 %
       Total operating profit (1)
7,384

7,529

(145
)
(1.9
)%
 
 
 
 
 
Total other income (expense) (2)
$
622

$
408

$
214

52.5
 %
Income before income taxes (1) (2)
$
8,006

$
7,937

$
69

0.9
 %
Net income (3)
$
6,301

$
5,254

$
1,047

19.9
 %
 
 
 
 
 
Basic earnings per share (3)
$
7.28

$
6.03

$
1.25

20.7
 %
Diluted earnings per share (3)
$
7.24

$
6.00

$
1.24

20.7
 %
(1) 2018 operating profit and consolidated income before income taxes excludes the impact of $360 million of transformation strategy costs. These costs are allocated between the U.S. Domestic Package segment ($235 million), International Package segment ($76 million) and Supply Chain & Freight segment ($49 million).

(2) 2018 total other income (expense) and consolidated income before income taxes excludes the impact of an increase in pension expense due to a mark-to-market loss recognized outside of a 10% corridor of $1.627 billion.

2017 total other income (expense) and consolidated income before income taxes excludes the impact of an increase in pension expense due to a mark-to-market loss recognized outside of a 10% corridor of $800 million.

(3) 2018 net income and earnings per share amounts exclude the after-tax impact of the adjustments described in (1) and (2), which decreased net income by $1.510 billion.

2017 net income and earnings per share amounts exclude the after-tax impact of the adjustment described in (2), which decreased net income by $607 million. 2017 net income also excludes income tax benefits of $258 million attributable to the 2017 Tax Cuts and Jobs Act.

Certain prior year amounts have been reclassified to conform to the current year presentation.




United Parcel Service, Inc.
Selected Operating Data - Year to Date
(unaudited)

 
Twelve Months Ended
 
 
 
December 31
 
 
 
2018
2017
Change
% Change
 
 
 
 
 
Revenue (in millions):
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
$
7,618

$
7,088

$
530

7.5
 %
   Deferred
4,752

4,422

330

7.5
 %
   Ground
31,223

29,251

1,972

6.7
 %
      Total U.S. Domestic Package
43,593

40,761

2,832

6.9
 %
International Package:
 
 
 
 
   Domestic
2,874

2,646

228

8.6
 %
   Export
10,973

10,170

803

7.9
 %
   Cargo and Other
595

526

69

13.1
 %
      Total International Package
14,442

13,342

1,100

8.2
 %
Supply Chain & Freight:
 
 
 
 
   Forwarding
6,580

5,674

906

16.0
 %
   Logistics
3,234

3,017

217

7.2
 %
   Freight
3,218

3,000

218

7.3
 %
   Other
794

791

3

0.4
 %
      Total Supply Chain & Freight
13,826

12,482

1,344

10.8
 %
Consolidated
$
71,861

$
66,585

$
5,276

7.9
 %
 
 
 
 
 
Consolidated volume (in millions)
5,231

5,088

143

2.8
 %
 
 
 
 
 
Operating weekdays
253

254

(1
)
(0.4
)%
 
 
 
 
 
Average Daily Package Volume (in thousands):
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
1,542

1,460

82

5.6
 %
   Deferred
1,432

1,400

32

2.3
 %
   Ground
14,498

14,060

438

3.1
 %
      Total U.S. Domestic Package
17,472

16,920

552

3.3
 %
International Package:
 
 
 
 
   Domestic
1,723

1,715

8

0.5
 %
   Export
1,482

1,395

87

6.2
 %
      Total International Package
3,205

3,110

95

3.1
 %
Consolidated
20,677

20,030

647

3.2
 %
 
 
 
 
 
Average Revenue Per Piece:
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
$
19.53

$
19.11

$
0.42

2.2
 %
   Deferred
13.12

12.44

0.68

5.5
 %
   Ground
8.51

8.19

0.32

3.9
 %
      Total U.S. Domestic Package
9.86

9.48

0.38

4.0
 %
International Package:
 
 
 
 
   Domestic
6.59

6.07

0.52

8.6
 %
   Export
29.27

28.70

0.57

2.0
 %
      Total International Package
17.08

16.22

0.86

5.3
 %
Consolidated
$
10.98

$
10.53

$
0.45

4.3
 %

Certain prior year amounts have been reclassified to conform to the current year presentation.




















United Parcel Service, Inc.
Supplemental Analysis of Currency and UPS Freight
Currency Neutral Revenue Per Piece
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended
 
 
 
 
 
Currency
 
 
 
December 31
 
 
 
Neutral
 
2018
 
2017
 
% Change
 
Currency
 
2018*
 
% Change
Average Revenue Per Piece:
 
 
 
 
 
 
 
 
 
 
 
International Package:
 
 
 
 
 
 
 
 
 
 
 
   Domestic
$
6.59

 
$
6.07

 
8.6
 %
 
$
(0.19
)
 
$
6.40

 
5.4
 %
   Export
29.27

 
28.70

 
2.0
 %
 
(0.16
)
 
29.11

 
1.4
 %
      Total International Package
$
17.08

 
$
16.22

 
5.3
 %
 
$
(0.18
)
 
$
16.90

 
4.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
10.98

 
$
10.53

 
4.3
 %
 
$
(0.03
)
 
$
10.95

 
4.0
 %
*Amounts adjusted for period over period foreign currency exchange rate and hedging differences
 
 
 
 
 
 
 
 
 
 
 
Currency Neutral Revenue
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended
 
 
 
 
 
Currency
 
 
 
December 31
 
 
 
Neutral
 
2018
 
2017
 
% Change
 
Currency
 
2018*
 
% Change
Revenue (in millions):
 
 
 
 
 
 
 
 
 
 
 
  U.S. Domestic Package
$
43,593

 
$
40,761

 
6.9
 %
 
$
—

 
$
43,593

 
6.9
 %
  International Package
14,442

 
13,342

 
8.2
 %
 
(147
)
 
$
14,295

 
7.1
 %
  Supply Chain & Freight
13,826

 
12,482

 
10.8
 %
 
(39
)
 
13,787

 
10.5
 %
  Total revenue
$
71,861

 
$
66,585

 
7.9
 %
 
$
(186
)
 
$
71,675

 
7.6
 %
*Amounts adjusted for period over period foreign currency exchange rate and hedging differences
 
 
 
 
 
 
 
 
 
 
 
Currency Neutral Operating Profit
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Tweleve Months Ended
 
 
 
 
 
Currency
 
December 31
 
 
 
 
 
Neutral
 
2018*
 
2017
 
% Change
 
Currency
 
2018**
 
% Change
As-Adjusted Operating Profit (in millions):
 
 
 
 
 
 
 
 
 
 
  U.S. Domestic Package
$
3,878

 
$
4,303

 
(9.9
)%
 
$
—

 
$
3,878

 
(9.9
)%
  International Package
2,605

 
2,429

 
7.2
 %
 
10

 
2,615

 
7.7
 %
  Supply Chain & Freight
901

 
797

 
13.0
 %
 
5

 
906

 
13.7
 %
  Total operating profit
$
7,384

 
$
7,529

 
(1.9
)%
 
$
15

 
$
7,399

 
(1.7
)%
* Amounts adjusted for Transformation strategy costs
** Amounts adjusted for Transformation strategy costs and period over period foreign currency exchange rate and hedging differences
UPS Freight Selected Operating Data - Year to Date
(unaudited)
 
Tweleve Months Ended
 
 
 
December 31
 
 
 
2018
2017
Change
% Change
LTL revenue (in millions)
$
2,706

$
2,598

$
108

4.2
 %
LTL revenue per LTL hundredweight
$
25.52

$
24.08

$
1.44

6.0
 %
 
 
 
 
 
LTL shipments (in thousands)
9,720

10,210

(490
)
(4.8
)%
LTL shipments per day (in thousands)
38.4

40.5

(2.1
)
(5.2
)%
 
 
 
 
 
LTL gross weight hauled (in millions of pounds)
10,605

10,788

(183
)
(1.7
)%
LTL weight per shipment (in pounds)
1,091

1,057

34

3.2
 %
 
 
 
 
 
Operating weekdays
253

252

1

0.4
 %




Certain prior year amounts have been reclassified to conform to the current year presentation.








United Parcel Service, Inc.
Detail of Other Operating Expenses - Year to Date
(unaudited)
 
Twelve Months Ended
 
 
 
 
 
December 31
 
 
 
 
 
2018
 
2017
 
Change
 
% Change
(in millions)
 
 
 
 
 
 
 
Repairs and Maintenance
$
1,732

 
$
1,601

 
$
131

 
8.2
 %
Depreciation and Amortization
2,207

 
2,282

 
(75
)
 
(3.3
)%
Purchased Transportation
13,409

 
11,696

 
1,713

 
14.6
 %
Fuel
3,427

 
2,690

 
737

 
27.4
 %
Other Occupancy
1,362

 
1,155

 
207

 
17.9
 %
Other Expenses
5,465

 
5,055

 
410

 
8.1
 %
Total Other Operating Expenses
27,602

 
24,479

 
3,123

 
12.8
 %

Detail of Other Pension Income (Expense) - Year to Date
(unaudited)
 
Twelve Months Ended
 
 
 
 
 
December 31
 
 
 
 
(in millions)
2018
 
2017
 
Change
 
% Change
U.S. Domestic Package
$
908

 
$
605

 
$
303

 
50.1
%
International Package
80

 
66

 
14

 
21.2
%
Supply Chain & Freight
149

 
118

 
31

 
26.3
%
Total other pension income (expense)
$
1,137

 
$
789

 
$
348

 
44.1
%
 
 
 
 
 
 
 
 
Pension Mark-to-Market Loss
$
(1,627
)
 
$
(800
)
 
$
(827
)
 
103.4
%
Total other pension income (expense)
$
(490
)
 
$
(11
)
 
$
(479
)
 
N/A


Earnings Per Share and Share Data - Year to Date
(unaudited)

 
Twelve Months Ended
 
December 31
 
2018
 
2017
(amounts in millions, except per share data)
 
 
 
Numerator:
 
 
 
    Net income
$
4,791

 
$
4,905

 
 
 
 
Denominator:
 
 
 
    Weighted-average shares
860

 
865

    Deferred compensation obligations
1

 
1

    Vested portion of restricted units
5

 
5

Denominator for basic earnings per share
866

 
872

 
 
 
 
Effect of dilutive securities:
 
 
 
    Restricted units
4

 
3

    Stock options
—

 
1

Denominator for diluted earnings per share
870

 
875

 
 
 
 
Basic earnings per share
$
5.53

 
$
5.63

 
 
 
 
Diluted earnings per share
$
5.51

 
$
5.61





Certain prior year amounts have been reclassified to conform to the current year presentation





United Parcel Service, Inc.
Consolidated Balance Sheets - December 31, 2018 and December 31, 2017
(unaudited)

 
December 31, 2018
 
December 31, 2017
(amounts in millions)
 
 
 
 
 
 
 
ASSETS
 
 
 
Current Assets:
 
 
 
Cash and marketable securities
$
5,035

 
$
4,069

Other current assets
10,696

 
11,649

Total Current Assets
15,731

 
15,718

Property, Plant and Equipment
54,488

 
48,726

Less accumulated depreciation and amortization
27,912

 
26,608

 
26,576

 
22,118

Other Assets
7,282

 
7,738

 
$
49,589

 
$
45,574

 
 
 
 
 
 
 
 
LIABILITIES AND SHAREOWNERS' EQUITY
 
 
 
Current Liabilities
$
14,087

 
$
12,886

Long-Term Debt
19,931

 
20,278

Pension and Postretirement Benefit Obligations
8,347

 
7,061

Deferred Taxes, Credits and Other Liabilities
4,187

 
4,325

Shareowners' Equity
3,037

 
1,024

 
$
49,589

 
$
45,574


Amounts are subject to reclassification.

United Parcel Service, Inc.
Selected Cash Flow Data
(unaudited)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
 
 
Preliminary
 
 
Year-to-Date
(amounts in millions)
 
December 31
Cash flows from operating activities
 
$
12,711

Cash flows used in investing activities
 
(6,330
)
Cash flows used in financing activities
 
(5,692
)
 
 
 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
(91
)
    Net increase in cash, cash equivalents and restricted cash
 
$
598

 
 
 
Reconciliation of Adjusted Capital Expenditures and Free Cash Flow (non-GAAP measures)
 
 
Preliminary
 
 
Year-to-Date
(amounts in millions)
 
December 31
Cash flows from operating activities
 
$
12,711

Capital expenditures
 
(6,283
)
Principal repayments of capital lease obligations
 
(340
)
Adjusted Capital Expenditures (non-GAAP measure)
 
$
(6,623
)
Proceed from disposal of PP&E
 
37

Net change in finance receivables
 
4

Other investing activities
 
1

     Adjusted Free cash flow (non-GAAP measure)
 
$
6,130



Amounts are subject to reclassification.





United Parcel Service, Inc.
Aircraft Fleet - as of December 31, 2018
(unaudited)

Description
Owned and Capital Leases
Leases & Charters from Others
On Order
Under Option
Operating:
 
 
 
 
Boeing 757-200
75

—

—

—

Boeing 767-200
—

2

—

—

Boeing 767-300
59

—

9

—

Boeing 767-300BCF
3

—

—

—

Airbus A300-600
52

—

—

—

Boeing MD-11
37

5

—

—

Boeing 747-400F
11

—

—

—

Boeing 747-400BCF
2

—

—

—

Boeing 747-8F
9

—

19

—

Other
—

309

—

—

 
 
 
 
 
          Total
248

316

28

—