Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - Fourth Quarter
(unaudited)
Three Months Ended
December 31
20202019Change% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
  U.S. Domestic Package$15,744 $13,408 $2,336 17.4 %
  International Package4,770 3,762 1,008 26.8 %
  Supply Chain & Freight4,382 3,398 984 29.0 %
  Total revenue24,896 20,568 4,328 21.0 %
Operating expenses:
  Compensation and benefits12,523 10,702 1,821 17.0 %
  Other10,206 7,733 2,473 32.0 %
  Total operating expenses22,729 18,435 4,294 23.3 %
Operating profit (loss):
  U.S. Domestic Package1,247 1,074 173 16.1 %
  International Package1,148 799 349 43.7 %
  Supply Chain & Freight(228)260 (488)(187.7)%
  Total operating profit2,167 2,133 34 1.6 %
Other income (expense):
 Other pension income (expense)(6,157)(2,196)(3,961)180.4 %
  Investment income and other31 (24)(77.4)%
  Interest expense(175)(166)(9)5.4 %
  Total other income (expense)(6,325)(2,331)(3,994)171.3 %
Income (loss) before income taxes(4,158)(198)(3,960)N/A
Income tax expense (benefit)(895)(92)(803)N/A
Net income (loss)$(3,263)$(106)$(3,157)N/A
Net income (loss) as a percentage of revenue(13.1)%(0.5)%
Per share amounts:
  Basic earnings (loss) per share$(3.75)$(0.12)$(3.63)N/A
  Diluted earnings (loss) per share$(3.75)$(0.12)$(3.63)N/A
Weighted-average shares outstanding:
  Basic871 863 0.9 %
  Diluted871 863 0.9 %
As adjusted income data (1):
Operating profit:
  U.S. Domestic Package $1,379 $1,207 $172 14.3 %
  International Package 1,160 809 351 43.4 %
  Supply Chain & Freight 331 262 69 26.3 %
  Total operating profit 2,870 2,278 592 26.0 %
Total other income (expense)$159 $56 $103 183.9 %
Income before income taxes $3,029 $2,334 $695 29.8 %
Net income $2,325 $1,840 $485 26.4 %
Basic earnings per share $2.67 $2.13 $0.54 25.4 %
Diluted earnings per share (2)
$2.66 $2.11 $0.55 26.1 %
(1) See Non-GAAP schedules for reconciliation of adjustments.
(2) Fourth quarter 2020 diluted earnings per share is based on weighted-average shares outstanding of 875 million, which includes the effect of 4 million dilutive shares and share equivalents.  Fourth quarter 2019 diluted earnings per share is based on weighted-average shares outstanding of 870 million, which includes the effect of 7 million dilutive shares and share equivalents. 
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
20202019Change% Change
Revenue (in millions):
U.S. Domestic Package:
   Next Day Air$2,385 $2,319 $66 2.8 %
   Deferred1,792 1,686 106 6.3 %
   Ground11,567 9,403 2,164 23.0 %
      Total U.S. Domestic Package15,744 13,408 2,336 17.4 %
International Package:
   Domestic977 767 210 27.4 %
   Export3,621 2,865 756 26.4 %
   Cargo and Other172 130 42 32.3 %
      Total International Package4,770 3,762 1,008 26.8 %
Supply Chain & Freight:
   Forwarding2,078 1,483 595 40.1 %
Logistics1,211 924 287 31.1 %
   Freight789 779 10 1.3 %
   Other304 212 92 43.4 %
      Total Supply Chain & Freight4,382 3,398 984 29.0 %
Consolidated$24,896 $20,568 $4,328 21.0 %
Consolidated volume (in millions)1,826 1,651 175 10.6 %
Operating weekdays62 62 — — %
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
   Next Day Air2,295 2,252 43 1.9 %
   Deferred2,299 2,268 31 1.4 %
   Ground20,561 18,589 1,972 10.6 %
      Total U.S. Domestic Package25,155 23,109 2,046 8.9 %
International Package:
   Domestic2,227 1,905 322 16.9 %
   Export2,068 1,618 450 27.8 %
      Total International Package4,295 3,523 772 21.9 %
Consolidated29,450 26,632 2,818 10.6 %
Average Revenue Per Piece:
U.S. Domestic Package:
   Next Day Air$16.76 $16.61 $0.15 0.9 %
   Deferred12.57 11.99 0.58 4.8 %
   Ground9.07 8.16 0.91 11.2 %
      Total U.S. Domestic Package10.09 9.36 0.73 7.8 %
International Package:
   Domestic7.08 6.49 0.59 9.1 %
   Export28.24 28.56 (0.32)(1.1)%
      Total International Package17.27 16.63 0.64 3.8 %
Consolidated$11.14 $10.32 $0.82 7.9 %






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




United Parcel Service, Inc.
Detail of Other Operating Expenses - Fourth Quarter
(unaudited)

Three Months Ended
December 31
20202019Change% Change
(in millions)
Repairs and maintenance$672 $446 $226 50.7 %
Depreciation and amortization712 630 82 13.0 %
Purchased transportation5,047 3,640 1,407 38.7 %
Fuel704 838 (134)(16.0)%
Other occupancy425 353 72 20.4 %
Other expenses2,646 1,826 820 44.9 %
Total other operating expenses$10,206 $7,733 $2,473 32.0 %


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

Three Months Ended
December 31
20202019
(amounts in millions, except per share data)
Numerator:
    Net income (loss)$(3,263)$(106)
Denominator:
    Weighted-average shares864 857 
    Deferred compensation obligations— — 
    Vested portion of restricted units
Denominator for basic earnings (loss) per share871 863 
Effect of dilutive securities:
    Restricted units— — 
    Stock options — — 
Denominator for diluted earnings (loss) per share871 863 
Basic earnings (loss) per share$(3.75)$(0.12)
Diluted earnings (loss) per share$(3.75)$(0.12)
Detail of shares outstanding as of December 31, 2020:
Class A shares147 
Class B shares718 
    Total shares outstanding865 
    












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
20202019Change% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
  U.S. Domestic Package$53,499 $46,493 $7,006 15.1 %
  International Package15,945 14,220 1,725 12.1 %
  Supply Chain & Freight15,184 13,381 1,803 13.5 %
  Total revenue84,628 74,094 10,534 14.2 %
Operating expenses:
  Compensation and benefits44,529 38,908 5,621 14.4 %
  Other32,285 27,388 4,897 17.9 %
  Total operating expenses76,814 66,296 10,518 15.9 %
Operating profit:
  U.S. Domestic Package3,891 4,164 (273)(6.6)%
  International Package3,436 2,657 779 29.3 %
  Supply Chain & Freight487 977 (490)(50.2)%
  Total operating profit7,814 7,798 16 0.2 %
Other income (expense):
 Other pension income (expense)(5,176)(1,622)(3,554)N/A
  Investment income and other37 129 (92)(71.3)%
  Interest expense(701)(653)(48)7.4 %
  Total other income (expense)(5,840)(2,146)(3,694)172.1 %
Income before income taxes1,974 5,652 (3,678)(65.1)%
Income tax expense (benefit)547 1,212 (665)(54.9)%
Net income $1,427 $4,440 $(3,013)(67.9)%
Net income as a percentage of revenue1.7 %6.0 %
Per share amounts:
  Basic earnings per share$1.65 $5.14 $(3.49)(67.9)%
  Diluted earnings per share$1.64 $5.11 $(3.47)(67.9)%
Weighted-average shares outstanding:
  Basic867 864 0.3 %
  Diluted871 869 0.2 %
As adjusted income data(1):
Operating profit:
  U.S. Domestic Package $4,128 $4,369 $(241)(5.5)%
  International Package 3,532 2,779 753 27.1 %
  Supply Chain & Freight 1,058 1,002 56 5.6 %
Total operating profit 8,718 8,150 568 7.0 %
Total other income (expense)$644 $241 $403 167.2 %
Income before income taxes $9,362 $8,391 $971 11.6 %
Net income $7,166 $6,543 $623 9.5 %
Basic earnings per share $8.27 $7.57 $0.70 9.2 %
Diluted earnings per share $8.23 $7.53 $0.70 9.3 %
(1) See Non-GAAP schedules for reconciliation of adjustments.



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
20202019Change% Change
Revenue (in millions):
U.S. Domestic Package:
   Next Day Air$8,522 $8,479 $43 0.5 %
   Deferred5,665 5,180 485 9.4 %
   Ground39,312 32,834 6,478 19.7 %
      Total U.S. Domestic Package53,499 46,493 7,006 15.1 %
International Package:
   Domestic3,160 2,836 324 11.4 %
   Export12,159 10,837 1,322 12.2 %
   Cargo and Other626 547 79 14.4 %
      Total International Package15,945 14,220 1,725 12.1 %
Supply Chain & Freight:
   Forwarding6,975 5,867 1,108 18.9 %
Logistics4,073 3,435 638 18.6 %
   Freight3,149 3,265 (116)(3.6)%
   Other987 814 173 21.3 %
      Total Supply Chain & Freight15,184 13,381 1,803 13.5 %
Consolidated$84,628 $74,094 $10,534 14.2 %
Consolidated volume (in millions)6,292 5,536 756 13.7 %
Operating weekdays255 253 0.8 %
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
   Next Day Air1,987 1,889 98 5.2 %
   Deferred1,783 1,622 161 9.9 %
   Ground17,371 15,176 2,195 14.5 %
      Total U.S. Domestic Package21,141 18,687 2,454 13.1 %
International Package:
   Domestic1,863 1,721 142 8.3 %
   Export1,672 1,472 200 13.6 %
      Total International Package3,535 3,193 342 10.7 %
Consolidated24,676 21,880 2,796 12.8 %
Average Revenue Per Piece:
U.S. Domestic Package:
   Next Day Air$16.82 $17.74 $(0.92)(5.2)%
   Deferred12.46 12.62 (0.16)(1.3)%
   Ground8.87 8.55 0.32 3.7 %
      Total U.S. Domestic Package9.92 9.83 0.09 0.9 %
International Package:
   Domestic6.65 6.51 0.14 2.2 %
   Export28.52 29.10 (0.58)(2.0)%
      Total International Package16.99 16.93 0.06 0.4 %
Consolidated$10.94 $10.87 $0.07 0.6 %





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
20202019Change% Change
(in millions)
Repairs and maintenance$2,365 $1,838 $527 28.7 %
Depreciation and amortization2,698 2,360 338 14.3 %
Purchased transportation15,631 12,590 3,041 24.2 %
Fuel2,582 3,289 (707)(21.5)%
Other occupancy1,539 1,392 147 10.6 %
Other expenses7,470 5,919 1,551 26.2 %
Total other operating expenses$32,285 $27,388 $4,897 17.9 %


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

Twelve Months Ended
December 31
20202019
(amounts in millions, except per share data)
Numerator:
    Net income $1,427 $4,440 
Denominator:
    Weighted-average shares862 859 
    Deferred compensation obligations— — 
    Vested portion of restricted units
Denominator for basic earnings per share867 864 
Effect of dilutive securities:
    Restricted units
    Stock options — — 
Denominator for diluted earnings per share871 869 
Basic earnings per share$1.65 $5.14 
Diluted earnings per share$1.64 $5.11 

















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





United Parcel Service, Inc.
Consolidated Balance Sheets
December 31, 2020 (unaudited) and December 31, 2019


December 31, 2020December 31, 2019
(amounts in millions)
ASSETS
Current Assets:
Cash and cash equivalents$5,910 $5,238 
Marketable securities406 503 
Accounts receivables10,888 9,645 
Less: Allowance for credit losses(138)(93)
Accounts receivable, net10,750 9,552 
Assets held for sale1,281 — 
Other current assets1,953 1,810 
 Total Current Assets20,300 17,103 
Property, Plant and Equipment, Net32,254 30,482 
Operating Lease Right-Of-Use Assets3,073 2,856 
Goodwill3,367 3,813 
Intangible Assets, Net2,274 2,167 
Investments and Restricted Cash25 24 
Deferred Income Tax Assets527 330 
Other Non-Current Assets672 1,082 
Total Assets $62,492 $57,857 
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Current maturities of long-term debt, commercial paper and finance leases$2,623 $3,420 
Current maturities of operating leases560 538 
Accounts payable6,455 5,555 
Accrued wage and withholdings3,569 2,552 
Self-insurance reserves1,085 914 
Accrued group welfare and retirement plan contributions927 793 
Liabilities to be disposed of347 — 
Other current liabilities 1,450 1,641 
Total Current Liabilities17,016 15,413 
Long-Term Debt and Finance Leases22,031 21,818 
Non-Current Operating Leases2,540 2,391 
Pension and Postretirement Benefit Obligations15,817 10,601 
Deferred Income Tax Liabilities488 1,632 
Other Non-Current Liabilities3,847 2,719 
Shareowners' Equity:
Class A common stock
Class B common stock
Additional paid-in capital865 150 
Retained earnings6,980 9,105 
Accumulated other comprehensive loss(7,113)(5,997)
Deferred compensation obligations20 26 
Less: Treasury stock(20)(26)
Total Equity for Controlling Interest741 3,267 
Noncontrolling interests12 16 
Total Shareowners' Equity753 3,283 
Total Liabilities and Sharewoners' Equity$62,492 $57,857 


Amounts are subject to reclassification.



United Parcel Service, Inc.
Statements of Consolidated Cash Flows
(unaudited)
(amounts in millions)Twelve Months Ended
December 31,
20202019
Cash Flows From Operating Activities:
Net income$1,427 $4,440 
Adjustments to reconcile net income to net cash from operating activities:
 Depreciation and amortization 2,698 2,360 
 Pension and postretirement benefit expense 7,125 3,141 
 Pension and postretirement benefit contributions (3,125)(2,362)
 Self-insurance reserves 503 (185)
 Deferred tax (benefit) expense (812)100 
 Stock compensation expense 796 915 
 Other (gains) losses 787 74 
Changes in assets and liabilities, net of effects of business acquisitions:
 Accounts receivable (1,562)(717)
 Other assets 218 698 
 Accounts payable 904 419 
 Accrued wages and withholdings 1,631 (446)
 Other liabilities (110)182 
Other operating activities(21)20 
 Net cash from operating activities 10,459 8,639 
Cash Flows From Investing Activities:
Capital expenditures(5,412)(6,380)
Proceeds from disposals of property, plant and equipment40 65 
Purchases of marketable securities(254)(561)
Sales and maturities of marketable securities360 883 
Net change in finance receivables44 13 
Cash paid for business acquisitions, net of cash and cash equivalents acquired(20)(6)
Other investing activities(41)(75)
Net cash used in investing activities(5,283)(6,061)
Cash Flows From Financing Activities:
Net change in short-term debt(2,462)310 
Proceeds from long-term borrowings5,003 5,205 
Repayments of long-term borrowings(3,392)(3,096)
Purchases of common stock(224)(1,004)
Issuances of common stock285 218 
Dividends(3,374)(3,194)
Other financing activities(353)(166)
Net cash used in financing activities(4,517)(1,727)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash13 20 
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash672 871 
Cash, Cash Equivalents and Restricted Cash:
Beginning of period5,238 4,367 
End of period$5,910 $5,238 






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




United Parcel Service, Inc.
Supplemental Analysis of Currency and Pension Discount Rates - Fourth Quarter
Currency Neutral Revenue Per Piece, Revenue and Operating Profit
(unaudited)
Three Months EndedCurrency
December 31Neutral
20202019% ChangeCurrency
2020 (1)
% Change
Average Revenue Per Piece:
International Package:
   Domestic$7.08 $6.49 9.1 %$(0.29)$6.79 4.6 %
   Export28.24 28.56 (1.1)%(0.71)27.53 (3.6)%
      Total International Package$17.27 $16.63 3.8 %$(0.49)$16.78 0.9 %
Consolidated$11.14 $10.32 7.9 %$(0.07)$11.07 7.3 %
Three Months EndedCurrency
December 31Neutral
20202019% ChangeCurrency
2020(1)
% Change
Revenue (in millions):
  U.S. Domestic Package$15,744 $13,408 17.4 %$— $15,744 17.4 %
  International Package4,770 3,762 26.8 %(132)4,638 23.3 %
  Supply Chain & Freight4,382 3,398 29.0 %(16)4,366 28.5 %
  Total revenue$24,896 $20,568 21.0 %$(148)$24,748 20.3 %
Three Months EndedCurrency
December 31Neutral
2020(2)
2019(2)
% ChangeCurrency
2020(3)
% Change
As-Adjusted Operating Profit (in millions):
  U.S. Domestic Package$1,379 $1,207 14.3 %$— $1,379 14.3 %
  International Package1,160 809 43.4 %(33)1,127 39.3 %
  Supply Chain & Freight331 262 26.3 %337 28.6 %
  Total operating profit$2,870 $2,278 26.0 %$(27)$2,843 24.8 %

Pension Discount Rate Neutral Operating Profit and Margin
(unaudited)
Three Months Ended December 31Pension Discount Rate Neutral
2020(2)
2019(2)
% ChangePension
2020(4)
% Change
As-Adjusted Operating profit (in millions):
U.S. Domestic Package$1,379 $1,207 14.3 %$61 $1,440 19.3 %
International Package1,160 809 43.4 %1,165 44.0 %
Supply Chain & Freight331 262 26.3 %338 29.0 %
Total operating profit$2,870 $2,278 26.0 %$73 $2,943 29.2 %
Three Months Ended
December 31
Pension Discount Rate Neutral
2020(2)
2019(2)
% ChangePension
2020(4)
% Change
As-Adjusted Operating margin:
U.S. Domestic Package8.8 %9.0 %(0.2)%0.3 %9.1 %0.1 %
International Package24.3 %21.5 %2.8 %0.1 %24.4 %2.9 %
Supply Chain & Freight7.6 %7.7 %(0.1)%0.1 %7.7 %— %
Total operating margin11.5 %11.1 %0.4 %0.3 %11.8 %0.7 %
(1) Amounts adjusted for period over period foreign currency exchange rate and hedging differences
(2) Amounts adjusted for transformation & other
(3) Amounts adjusted for transformation & other and period over period foreign currency exchange rate and hedging differences
(4) Amounts adjusted for transformation & other and period over period impact of discount rates on pension service cost
Certain prior year have been reclassified to conform to the current year presentation.




United Parcel Service, Inc.
Supplemental Analysis of Currency and Pension Discount Rates - Year to Date
Currency Neutral Revenue Per Piece, Revenue and Operating Profit
(unaudited)
Twelve Months EndedCurrency
December 31Neutral
20202019% ChangeCurrency
2020(1)
% Change
Average Revenue Per Piece:
International Package:
   Domestic$6.65 $6.51 2.2 %$(0.06)$6.59 1.2 %
   Export28.52 29.10 (2.0)%(0.23)28.29 (2.8)%
      Total International Package$16.99 $16.93 0.4 %$(0.14)$16.85 (0.5)%
Consolidated$10.94 $10.87 0.6 %$(0.02)$10.92 0.5 %
Twelve Months EndedCurrency
December 31Neutral
20202019% ChangeCurrency
2020(1)
% Change
Revenue (in millions):
  U.S. Domestic Package$53,499 $46,493 15.1 %$— $53,499 15.1 %
  International Package15,945 14,220 12.1 %(129)15,816 11.2 %
  Supply Chain & Freight15,184 13,381 13.5 %92 15,276 14.2 %
  Total revenue$84,628 $74,094 14.2 %$(37)$84,591 14.2 %
Twelve Months EndedCurrency
December 31Neutral
2020(2)
2019(2)
% ChangeCurrency
2020(3)
% Change
As-Adjusted Operating Profit (in millions):
  U.S. Domestic Package$4,128 $4,369 (5.5)%$— $4,128 (5.5)%
  International Package3,532 2,779 27.1 %(70)3,462 24.6 %
  Supply Chain & Freight1,058 1,002 5.6 %1,060 5.8 %
  Total operating profit$8,718 $8,150 7.0 %$(68)$8,650 6.1 %

Pension Discount Rate Neutral Operating Profit and Margin
(unaudited)
Twelve Months Ended
December 31
Pension Discount Rate Neutral
2020(2)
2019(2)
% ChangePension
2020(4)
% Change
As-Adjusted Operating profit (in millions):
U.S. Domestic Package$4,128 $4,369 (5.5)%$249 $4,377 0.2 %
International Package3,532 2,779 27.1 %17 3,549 27.7 %
Supply Chain & Freight1,058 1,002 5.6 %28 1,086 8.4 %
Total operating profit$8,718 $8,150 7.0 %$294 $9,012 10.6 %
Twelve Months Ended
December 31
Pension Discount Rate Neutral
2020(2)
2019(2)
% ChangePension
2020(4)
% Change
As-Adjusted Operating margin:
U.S. Domestic Package7.7 %9.4 %(1.7)%0.5 %8.2 %(1.2)%
International Package22.2 %19.5 %2.7 %0.1 %22.3 %2.8 %
Supply Chain & Freight7.0 %7.5 %(0.5)%0.2 %7.2 %(0.3)%
Total operating margin10.3 %11.0 %(0.7)%0.3 %10.6 %(0.4)%
(1) Amounts adjusted for period over period foreign currency exchange rate and hedging differences
(2) Amounts adjusted for transformation & other
(3) Amounts adjusted for transformation & other and period over period foreign currency exchange rate and hedging differences
(4) Amounts adjusted for transformation & other and period over period impact of discount rates on pension service cost
Certain prior year have been reclassified to conform to the current year presentation.




United Parcel Service, Inc.
Non-GAAP Schedules
Reconciliation of GAAP and Non-GAAP Income Statement Data
(in millions, except per share amounts):

Three Months Ended December 31,
20202019
As-Reported (GAAP)
Transformation & Other (1)
Defined Benefit Plans MTM Charges (2)
As-Adjusted
(Non-GAAP)
As-Reported (GAAP)
Transformation & Other (3)
Defined Benefit Plans MTM Charges (2)
Legal Contingencies and ExpensesAs-Adjusted
(Non-GAAP)
Operating profit:
U.S. Domestic Package$1,247 $132 $— $1,379 $1,074 $36 $— $97 $1,207 
International Package1,148 12 — 1,160 799 10 — — 809 
Supply Chain & Freight(228)559 — 331 260 — — 262 
Total operating profit$2,167 $703 $— $2,870 $2,133 $48 $— $97 $2,278 
Other income (expense)$(6,325)$— $6,484 $159 $(2,331)$— $2,387 $— $56 
Income (loss) before income taxes$(4,158)$703 $6,484 $3,029 $(198)$48 $2,387 $97 $2,334 
Income tax expense (benefit)$(895)$44 $1,555 $704 $(92)$$571 $$494 
Net income (loss)$(3,263)$659 $4,929 $2,325 $(106)$39 $1,816 $91 $1,840 
Diluted earnings (loss) per share (4)
$(3.75)$0.75 $5.63 $2.66 $(0.12)$0.04 $2.09 $0.10 $2.11 

(1) Transformation & other of $703 million reflects goodwill and other asset impairment charges of $556 million related to the planned divestiture of UPS Freight, other employee benefits costs of $100 million and other costs of $47 million
(2) Represents mark-to-market losses recognized outside of a 10% corridor on company-sponsored pension and postretirement plans
(3) Transformation & other of $48 million reflect other employee benefits costs of $17 million and other costs of $31 million
(4) Does not total due to difference in weighted-average shares outstanding used to calculate diluted earnings per share


Twelve Months Ended December 31,
20202019
As-Reported (GAAP)
Transformation & Other (1)
Defined Benefit Plans MTM Charges (2)
As-Adjusted
(Non-GAAP)
As-Reported (GAAP)
Transformation & Other (3)
Defined Benefit Plans MTM Charges (2)
Legal Contingencies and ExpensesAs-Adjusted
(Non-GAAP)
Operating profit:
U.S. Domestic Package$3,891 $237 $— $4,128 $4,164 $108 $— $97 $4,369 
International Package3,436 96 — 3,532 2,657 122 — — 2,779 
Supply Chain & Freight487 571 — 1,058 977 25 — — 1,002 
Total operating profit$7,814 $904 $— $8,718 $7,798 $255 $— $97 $8,150 
Other income (expense)$(5,840)$— $6,484 $644 $(2,146)$— $2,387 $— $241 
Income before income taxes$1,974 $904 $6,484 $9,362 $5,652 $255 $2,387 $97 $8,391 
Income tax expense$547 $94 $1,555 $2,196 $1,212 $59 $571 $$1,848 
Net income$1,427 $810 $4,929 $7,166 $4,440 $196 $1,816 $91 $6,543 
Diluted earnings per share$1.64 $0.93 $5.66 $8.23 $5.11 $0.23 $2.09 $0.10 $7.53 

(1) Transformation & other of $904 million reflects goodwill and other asset impairment charges of $556 million related to the planned divestiture of UPS Freight, other employee benefits costs of $211 million and other costs of $137 million
(2) Represents mark-to-market losses recognized outside of a 10% corridor on company-sponsored pension and postretirement plans
(3) Transformation & other of $255 million reflect other employee benefits costs of $166 million and other costs of $89 million




Reconciliation of Adjusted Capital Expenditures and Free Cash Flow (Non-GAAP measures)
(in millions):
Twelve Months Ended December 31,
20202019
Cash flows from operating activities $10,459 $8,639 
Capital expenditures(5,412)(6,380)
Proceeds from disposals of PP&E40 65 
Net change in finance receivables44 13 
Other investing activities(41)(75)
Free cash flow (Non-GAAP measure)$5,090 $2,262 
   Principal repayments of finance lease obligations(192)(140)
Adjusted Free cash flow (Non-GAAP measure)$4,898 $2,122 
Discretionary pension contributions2,770 2,000 
Adjusted Free cash flow (Non-GAAP measure) excluding discretionary pension contributions$7,668 $4,122 
Capital expenditures$5,412 $6,380 
Principal repayments of finance lease obligations192140
   Adjusted Capital expenditures (Non-GAAP measure)$5,604 $6,520 
Amounts are subject to reclassification.



United Parcel Service, Inc.
Aircraft Fleet - as of December 31, 2020
(unaudited)

DescriptionOwned and Finance LeasesOperating Leases & Charters from OthersOn OrderUnder Option
Operating:
Boeing 757-20075 — — — 
Boeing 767-30069 — — 
Boeing 767-300BCF— — — 
Boeing 767-300BDSF— — — 
Airbus A300-60052 — — — 
Boeing MD-1140 — — 
Boeing 747-400F11 — — — 
Boeing 747-400BCF— — — 
Boeing 747-8F20 — — 
Other— 311 — — 
          Total277 311 13 —