Exhibit 99.2

United Parcel Service, Inc.

Selected Financial Data - Fourth Quarter

(unaudited)

			Three Months Ended
			December 31
			2020			2019			Change			% 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 Package			4,770			3,762			1,008			26.8		%
Supply Chain & Freight			4,382			3,398			984			29.0		%
Total revenue			24,896			20,568			4,328			21.0		%
Operating expenses:
Compensation and benefits			12,523			10,702			1,821			17.0		%
Other			10,206			7,733			2,473			32.0		%
Total operating expenses			22,729			18,435			4,294			23.3		%
Operating profit (loss):
U.S. Domestic Package			1,247			1,074			173			16.1		%
International Package			1,148			799			349			43.7		%
Supply Chain & Freight			(228)			260			(488)			(187.7)		%
Total operating profit			2,167			2,133			34			1.6		%
Other income (expense):
Other pension income (expense)			(6,157)			(2,196)			(3,961)			180.4		%
Investment income and other			7			31			(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:
Basic			871			863			8			0.9		%
Diluted			871			863			8			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
			2020			2019			Change			% Change
Revenue (in millions):
U.S. Domestic Package:
Next Day Air			$	2,385		$	2,319		$	66		2.8		%
Deferred			1,792			1,686			106			6.3		%
Ground			11,567			9,403			2,164			23.0		%
Total U.S. Domestic Package			15,744			13,408			2,336			17.4		%
International Package:
Domestic			977			767			210			27.4		%
Export			3,621			2,865			756			26.4		%
Cargo and Other			172			130			42			32.3		%
Total International Package			4,770			3,762			1,008			26.8		%
Supply Chain & Freight:
Forwarding			2,078			1,483			595			40.1		%
Logistics			1,211			924			287			31.1		%
Freight			789			779			10			1.3		%
Other			304			212			92			43.4		%
Total Supply Chain & Freight			4,382			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 weekdays			62			62			—			—		%
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air			2,295			2,252			43			1.9		%
Deferred			2,299			2,268			31			1.4		%
Ground			20,561			18,589			1,972			10.6		%
Total U.S. Domestic Package			25,155			23,109			2,046			8.9		%
International Package:
Domestic			2,227			1,905			322			16.9		%
Export			2,068			1,618			450			27.8		%
Total International Package			4,295			3,523			772			21.9		%
Consolidated			29,450			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		%
Deferred			12.57			11.99			0.58			4.8		%
Ground			9.07			8.16			0.91			11.2		%
Total U.S. Domestic Package			10.09			9.36			0.73			7.8		%
International Package:
Domestic			7.08			6.49			0.59			9.1		%
Export			28.24			28.56			(0.32)			(1.1)		%
Total International Package			17.27			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
			2020						2019						Change						% Change
(in millions)
Repairs and maintenance			$	672					$	446					$	226					50.7		%
Depreciation and amortization			712						630						82						13.0		%
Purchased transportation			5,047						3,640						1,407						38.7		%
Fuel			704						838						(134)						(16.0)		%
Other occupancy			425						353						72						20.4		%
Other expenses			2,646						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
			2020						2019
(amounts in millions, except per share data)
Numerator:
Net income (loss)			$	(3,263)					$	(106)
Denominator:
Weighted-average shares			864						857
Deferred compensation obligations			—						—
Vested portion of restricted units			7						6
Denominator for basic earnings (loss) per share			871						863
Effect of dilutive securities:
Restricted units			—						—
Stock options			—						—
Denominator for diluted earnings (loss) per share			871						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 shares			147
Class B shares			718
Total shares outstanding			865

    

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
			2020			2019			Change			% 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 Package			15,945			14,220			1,725			12.1		%
Supply Chain & Freight			15,184			13,381			1,803			13.5		%
Total revenue			84,628			74,094			10,534			14.2		%
Operating expenses:
Compensation and benefits			44,529			38,908			5,621			14.4		%
Other			32,285			27,388			4,897			17.9		%
Total operating expenses			76,814			66,296			10,518			15.9		%
Operating profit:
U.S. Domestic Package			3,891			4,164			(273)			(6.6)		%
International Package			3,436			2,657			779			29.3		%
Supply Chain & Freight			487			977			(490)			(50.2)		%
Total operating profit			7,814			7,798			16			0.2		%
Other income (expense):
Other pension income (expense)			(5,176)			(1,622)			(3,554)			N/A
Investment income and other			37			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 taxes			1,974			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 revenue			1.7		%	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:
Basic			867			864			3			0.3		%
Diluted			871			869			2			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
			2020			2019			Change			% Change
Revenue (in millions):
U.S. Domestic Package:
Next Day Air			$	8,522		$	8,479		$	43		0.5		%
Deferred			5,665			5,180			485			9.4		%
Ground			39,312			32,834			6,478			19.7		%
Total U.S. Domestic Package			53,499			46,493			7,006			15.1		%
International Package:
Domestic			3,160			2,836			324			11.4		%
Export			12,159			10,837			1,322			12.2		%
Cargo and Other			626			547			79			14.4		%
Total International Package			15,945			14,220			1,725			12.1		%
Supply Chain & Freight:
Forwarding			6,975			5,867			1,108			18.9		%
Logistics			4,073			3,435			638			18.6		%
Freight			3,149			3,265			(116)			(3.6)		%
Other			987			814			173			21.3		%
Total Supply Chain & Freight			15,184			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 weekdays			255			253			2			0.8		%
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air			1,987			1,889			98			5.2		%
Deferred			1,783			1,622			161			9.9		%
Ground			17,371			15,176			2,195			14.5		%
Total U.S. Domestic Package			21,141			18,687			2,454			13.1		%
International Package:
Domestic			1,863			1,721			142			8.3		%
Export			1,672			1,472			200			13.6		%
Total International Package			3,535			3,193			342			10.7		%
Consolidated			24,676			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)		%
Deferred			12.46			12.62			(0.16)			(1.3)		%
Ground			8.87			8.55			0.32			3.7		%
Total U.S. Domestic Package			9.92			9.83			0.09			0.9		%
International Package:
Domestic			6.65			6.51			0.14			2.2		%
Export			28.52			29.10			(0.58)			(2.0)		%
Total International Package			16.99			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
			2020						2019						Change						% Change
(in millions)
Repairs and maintenance			$	2,365					$	1,838					$	527					28.7		%
Depreciation and amortization			2,698						2,360						338						14.3		%
Purchased transportation			15,631						12,590						3,041						24.2		%
Fuel			2,582						3,289						(707)						(21.5)		%
Other occupancy			1,539						1,392						147						10.6		%
Other expenses			7,470						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
			2020						2019
(amounts in millions, except per share data)
Numerator:
Net income			$	1,427					$	4,440
Denominator:
Weighted-average shares			862						859
Deferred compensation obligations			—						—
Vested portion of restricted units			5						5
Denominator for basic earnings per share			867						864
Effect of dilutive securities:
Restricted units			4						5
Stock options			—						—
Denominator for diluted earnings per share			871						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, 2020						December 31, 2019
(amounts in millions)
ASSETS
Current Assets:
Cash and cash equivalents			$	5,910					$	5,238
Marketable securities			406						503
Accounts receivables			10,888						9,645
Less: Allowance for credit losses			(138)						(93)
Accounts receivable, net			10,750						9,552
Assets held for sale			1,281						—
Other current assets			1,953						1,810
Total Current Assets			20,300						17,103
Property, Plant and Equipment, Net			32,254						30,482
Operating Lease Right-Of-Use Assets			3,073						2,856
Goodwill			3,367						3,813
Intangible Assets, Net			2,274						2,167
Investments and Restricted Cash			25						24
Deferred Income Tax Assets			527						330
Other Non-Current Assets			672						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 leases			560						538
Accounts payable			6,455						5,555
Accrued wage and withholdings			3,569						2,552
Self-insurance reserves			1,085						914
Accrued group welfare and retirement plan contributions			927						793
Liabilities to be disposed of			347						—
Other current liabilities			1,450						1,641
Total Current Liabilities			17,016						15,413
Long-Term Debt and Finance Leases			22,031						21,818
Non-Current Operating Leases			2,540						2,391
Pension and Postretirement Benefit Obligations			15,817						10,601
Deferred Income Tax Liabilities			488						1,632
Other Non-Current Liabilities			3,847						2,719
Shareowners' Equity:
Class A common stock			2						2
Class B common stock			7						7
Additional paid-in capital			865						150
Retained earnings			6,980						9,105
Accumulated other comprehensive loss			(7,113)						(5,997)
Deferred compensation obligations			20						26
Less: Treasury stock			(20)						(26)
Total Equity for Controlling Interest			741						3,267
Noncontrolling interests			12						16
Total Shareowners' Equity			753						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,
									2020						2019
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 equipment						40						65
			Purchases of marketable securities						(254)						(561)
			Sales and maturities of marketable securities						360						883
			Net change in finance receivables						44						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 borrowings						5,003						5,205
			Repayments of long-term borrowings						(3,392)						(3,096)
			Purchases of common stock						(224)						(1,004)
			Issuances of common stock						285						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 Cash									13						20
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash									672						871
Cash, Cash Equivalents and Restricted Cash:
			Beginning of period						5,238						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 Ended																								Currency
			December 31																								Neutral
			2020						2019						% Change						Currency						2020 (1)						% Change
Average Revenue Per Piece:
International Package:
Domestic			$	7.08					$	6.49					9.1		%				$	(0.29)					$	6.79					4.6		%
Export			28.24						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 Ended																								Currency
			December 31																								Neutral
			2020						2019						% Change						Currency						2020(1)						% Change
Revenue (in millions):
U.S. Domestic Package			$	15,744					$	13,408					17.4		%				$	—					$	15,744					17.4		%
International Package			4,770						3,762						26.8		%				(132)						4,638						23.3		%
Supply Chain & Freight			4,382						3,398						29.0		%				(16)						4,366						28.5		%
Total revenue			$	24,896					$	20,568					21.0		%				$	(148)					$	24,748					20.3		%
			Three Months Ended																								Currency
			December 31																								Neutral
			2020(2)						2019(2)						% Change						Currency						2020(3)						% Change
As-Adjusted Operating Profit (in millions):
U.S. Domestic Package			$	1,379					$	1,207					14.3		%				$	—					$	1,379					14.3		%
International Package			1,160						809						43.4		%				(33)						1,127						39.3		%
Supply Chain & Freight			331						262						26.3		%				6						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 31																								Pension Discount Rate Neutral
			2020(2)						2019(2)						% Change						Pension						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 Package			1,160						809						43.4		%				5						1,165						44.0		%
Supply Chain & Freight			331						262						26.3		%				7						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)						% Change						Pension						2020(4)						% Change
As-Adjusted Operating margin:
U.S. Domestic Package			8.8		%				9.0		%				(0.2)		%				0.3		%				9.1		%				0.1		%
International Package			24.3		%				21.5		%				2.8		%				0.1		%				24.4		%				2.9		%
Supply Chain & Freight			7.6		%				7.7		%				(0.1)		%				0.1		%				7.7		%				—		%
Total operating margin			11.5		%				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 Ended																								Currency
			December 31																								Neutral
			2020						2019						% Change						Currency						2020(1)						% Change
Average Revenue Per Piece:
International Package:
Domestic			$	6.65					$	6.51					2.2		%				$	(0.06)					$	6.59					1.2		%
Export			28.52						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 Ended																								Currency
			December 31																								Neutral
			2020						2019						% Change						Currency						2020(1)						% Change
Revenue (in millions):
U.S. Domestic Package			$	53,499					$	46,493					15.1		%				$	—					$	53,499					15.1		%
International Package			15,945						14,220						12.1		%				(129)						15,816						11.2		%
Supply Chain & Freight			15,184						13,381						13.5		%				92						15,276						14.2		%
Total revenue			$	84,628					$	74,094					14.2		%				$	(37)					$	84,591					14.2		%
			Twelve Months Ended																								Currency
			December 31																								Neutral
			2020(2)						2019(2)						% Change						Currency						2020(3)						% Change
As-Adjusted Operating Profit (in millions):
U.S. Domestic Package			$	4,128					$	4,369					(5.5)		%				$	—					$	4,128					(5.5)		%
International Package			3,532						2,779						27.1		%				(70)						3,462						24.6		%
Supply Chain & Freight			1,058						1,002						5.6		%				2						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)						% Change						Pension						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 Package			3,532						2,779						27.1		%				17						3,549						27.7		%
Supply Chain & Freight			1,058						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)						% Change						Pension						2020(4)						% Change
As-Adjusted Operating margin:
U.S. Domestic Package			7.7		%				9.4		%				(1.7)		%				0.5		%				8.2		%				(1.2)		%
International Package			22.2		%				19.5		%				2.7		%				0.1		%				22.3		%				2.8		%
Supply Chain & Freight			7.0		%				7.5		%				(0.5)		%				0.2		%				7.2		%				(0.3)		%
Total operating margin			10.3		%				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,
			2020																								2019
			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 Expenses						As-Adjusted (Non-GAAP)
Operating profit:
U.S. Domestic Package			$	1,247					$	132					$	—					$	1,379					$	1,074					$	36					$	—					$	97					$	1,207
International Package			1,148						12						—						1,160						799						10						—						—						809
Supply Chain & Freight			(228)						559						—						331						260						2						—						—						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)					$	9					$	571					$	6					$	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,
			2020																								2019
			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 Expenses						As-Adjusted (Non-GAAP)
Operating profit:
U.S. Domestic Package			$	3,891					$	237					$	—					$	4,128					$	4,164					$	108					$	—					$	97					$	4,369
International Package			3,436						96						—						3,532						2,657						122						—						—						2,779
Supply Chain & Freight			487						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					$	6					$	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,
			2020						2019
Cash flows from operating activities			$	10,459					$	8,639
Capital expenditures			(5,412)						(6,380)
Proceeds from disposals of PP&E			40						65
Net change in finance receivables			44						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 contributions			2,770						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 obligations			192						140
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)

Description			Owned and Finance Leases			Operating Leases & Charters from Others			On Order			Under Option
Operating:
Boeing 757-200			75			—			—			—
Boeing 767-300			69			—			3			—
Boeing 767-300BCF			4			—			—			—
Boeing 767-300BDSF			4			—			—			—
Airbus A300-600			52			—			—			—
Boeing MD-11			40			—			2			—
Boeing 747-400F			11			—			—			—
Boeing 747-400BCF			2			—			—			—
Boeing 747-8F			20			—			8			—
Other			—			311			—			—
Total			277			311			13			—