Document

Exhibit 99.2

United Parcel Service, Inc.

Selected Financial Data - Third Quarter

(unaudited)


	Three Months Ended
	September 30
	2023			2022			Change		% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package	$	13,660		$	15,374		$	(1,714)	(11.1)	%
International Package	4,267			4,799			(532)		(11.1)	%
Supply Chain Solutions	3,134			3,988			(854)		(21.4)	%
Total revenue	21,061			24,161			(3,100)		(12.8)	%

Operating expenses:
U.S. Domestic Package	13,089			13,708			(619)		(4.5)	%
International Package	3,637			3,802			(165)		(4.3)	%
Supply Chain Solutions	2,992			3,538			(546)		(15.4)	%
Total operating expenses	19,718			21,048			(1,330)		(6.3)	%

Operating profit:
U.S. Domestic Package	571			1,666			(1,095)		(65.7)	%
International Package	630			997			(367)		(36.8)	%
Supply Chain Solutions	142			450			(308)		(68.4)	%
Total operating profit	1,343			3,113			(1,770)		(56.9)	%

Other income (expense):
Other pension income (expense)	66			297			(231)		(77.8)	%
Investment income (expense) and other	58			36			22		61.1	%
Interest expense	(199)			(177)			(22)		12.4	%
Total other income (expense)	(75)			156			(231)		N/A

Income before income taxes	1,268			3,269			(2,001)		(61.2)	%

Income tax expense	141			685			(544)		(79.4)	%

Net income	$	1,127		$	2,584		$	(1,457)	(56.4)	%

Net income as a percentage of revenue	5.4		%	10.7		%

Per share amounts:
Basic earnings per share	$	1.31		$	2.97		$	(1.66)	(55.9)	%
Diluted earnings per share	$	1.31		$	2.96		$	(1.65)	(55.7)	%

Weighted-average shares outstanding:
Basic	857			870			(13)		(1.5)	%
Diluted	858			872			(14)		(1.6)	%

As Adjusted Income Data (1):
Operating profit:
U.S. Domestic Package	$	665		$	1,686		$	(1,021)	(60.6)	%
International Package	675			1,004			(329)		(32.8)	%
Supply Chain Solutions	275			459			(184)		(40.1)	%
Total operating profit	1,615			3,149			(1,534)		(48.7)	%

Total other income (expense)	$	(75)		$	156		$	(231)	N/A
Income before income taxes	$	1,540		$	3,305		$	(1,765)	(53.4)	%
Net income	$	1,346		$	2,611		$	(1,265)	(48.4)	%

Basic earnings per share	$	1.57		$	3.00		$	(1.43)	(47.7)	%
Diluted earnings per share	$	1.57		$	2.99		$	(1.42)	(47.5)	%

(1) See Non-GAAP schedules for reconciliation of adjustments.

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Selected Operating Data - Third Quarter

(unaudited)


	Three Months Ended
	September 30
	2023		2022		Change		% Change

Revenue (in millions):
U.S. Domestic Package:
Next Day Air	$	2,372	$	2,673	$	(301)	(11.3)	%
Deferred	1,128		1,311		(183)		(14.0)	%
Ground	10,160		11,390		(1,230)		(10.8)	%
Total U.S. Domestic Package	13,660		15,374		(1,714)		(11.1)	%
International Package:
Domestic	742		785		(43)		(5.5)	%
Export	3,367		3,747		(380)		(10.1)	%
Cargo and Other	158		267		(109)		(40.8)	%
Total International Package	4,267		4,799		(532)		(11.1)	%
Supply Chain Solutions:
Forwarding	1,327		2,162		(835)		(38.6)	%
Logistics	1,430		1,302		128		9.8	%
Other	377		524		(147)		(28.1)	%
Total Supply Chain Solutions	3,134		3,988		(854)		(21.4)	%
Consolidated	$	21,061	$	24,161	$	(3,100)	(12.8)	%

Consolidated volume (in millions)	1,287		1,466		(179)		(12.2)	%

Operating weekdays	63		64		(1)		(1.6)	%

Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air	1,679		1,932		(253)		(13.1)	%
Deferred	1,078		1,341		(263)		(19.6)	%
Ground	14,529		16,266		(1,737)		(10.7)	%
Total U.S. Domestic Package	17,286		19,539		(2,253)		(11.5)	%
International Package:
Domestic	1,524		1,677		(153)		(9.1)	%
Export	1,615		1,684		(69)		(4.1)	%
Total International Package	3,139		3,361		(222)		(6.6)	%
Consolidated	20,425		22,900		(2,475)		(10.8)	%

Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air	$	22.42	$	21.62	$	0.80	3.7	%
Deferred	16.61		15.28		1.33		8.7	%
Ground	11.10		10.94		0.16		1.5	%
Total U.S. Domestic Package	12.54		12.29		0.25		2.0	%
International Package:
Domestic	7.73		7.31		0.42		5.7	%
Export	33.09		34.77		(1.68)		(4.8)	%
Total International Package	20.78		21.07		(0.29)		(1.4)	%
Consolidated	$	13.81	$	13.58	$	0.23	1.7	%

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Detail of Operating Expenses - Third Quarter

(unaudited)


	Three Months Ended
	September 30
	2023		2022		Change		% Change
(in millions)
Compensation and benefits	$	11,528	$	11,489	$	39	0.3	%
Repairs and maintenance	719		732		(13)		(1.8)	%
Depreciation and amortization	837		774		63		8.1	%
Purchased transportation	3,118		4,179		(1,061)		(25.4)	%
Fuel	1,132		1,530		(398)		(26.0)	%
Other occupancy	481		435		46		10.6	%
Other expenses	1,903		1,909		(6)		(0.3)	%
Total operating expenses	$	19,718	$	21,048	$	(1,330)	(6.3)	%

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Selected Financial Data - Year to Date

(unaudited)


	Nine Months Ended
	September 30
	2023			2022			Change		% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package	$	43,043		$	45,957		$	(2,914)	(6.3)	%
International Package	13,225			14,748			(1,523)		(10.3)	%
Supply Chain Solutions	9,773			12,600			(2,827)		(22.4)	%
Total revenue	66,041			73,305			(7,264)		(9.9)	%

Operating expenses:
U.S. Domestic Package	39,404			40,800			(1,396)		(3.4)	%
International Package	10,884			11,442			(558)		(4.9)	%
Supply Chain Solutions	9,089			11,164			(2,075)		(18.6)	%
Total operating expenses	59,377			63,406			(4,029)		(6.4)	%

Operating profit:
U.S. Domestic Package	3,639			5,157			(1,518)		(29.4)	%
International Package	2,341			3,306			(965)		(29.2)	%
Supply Chain Solutions	684			1,436			(752)		(52.4)	%
Total operating profit	6,664			9,899			(3,235)		(32.7)	%

Other income (expense):
Other pension income (expense)	198			926			(728)		(78.6)	%
Investment income (expense) and other	226			55			171		310.9	%
Interest expense	(578)			(522)			(56)		10.7	%
Total other income (expense)	(154)			459			(613)		N/A

Income before income taxes	6,510			10,358			(3,848)		(37.2)	%

Income tax expense	1,407			2,263			(856)		(37.8)	%

Net income	$	5,103		$	8,095		$	(2,992)	(37.0)	%

Net income as a percentage of revenue	7.7		%	11.0		%

Per share amounts:
Basic earnings per share	$	5.93		$	9.27		$	(3.34)	(36.0)	%
Diluted earnings per share	$	5.92		$	9.24		$	(3.32)	(35.9)	%

Weighted-average shares outstanding:
Basic	860			873			(13)		(1.5)	%
Diluted	861			876			(15)		(1.7)	%

As Adjusted Income Data (1):
Operating profit:
U.S. Domestic Package	$	3,834		$	5,246		$	(1,412)	(26.9)	%
International Package	2,383			3,328			(945)		(28.4)	%
Supply Chain Solutions	869			1,457			(588)		(40.4)	%
Total operating profit	7,086			10,031			(2,945)		(29.4)	%

Total other income (expense)	$	(154)		$	426		$	(580)	N/A
Income before income taxes	$	6,932		$	10,457		$	(3,525)	(33.7)	%
Net income	$	5,437		$	8,172		$	(2,735)	(33.5)	%

Basic earnings per share	$	6.32		$	9.36		$	(3.04)	(32.5)	%
Diluted earnings per share	$	6.31		$	9.33		$	(3.02)	(32.4)	%

(1) See Non-GAAP schedules for reconciliation of adjustments.

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Selected Operating Data - Year to Date

(unaudited)


	Nine Months Ended
	September 30
	2023		2022		Change		% Change

Revenue (in millions):
U.S. Domestic Package:
Next Day Air	$	7,240	$	7,923	$	(683)	(8.6)	%
Deferred	3,491		4,123		(632)		(15.3)	%
Ground	32,312		33,911		(1,599)		(4.7)	%
Total U.S. Domestic Package	43,043		45,957		(2,914)		(6.3)	%
International Package:
Domestic	2,299		2,465		(166)		(6.7)	%
Export	10,387		11,501		(1,114)		(9.7)	%
Cargo and Other	539		782		(243)		(31.1)	%
Total International Package	13,225		14,748		(1,523)		(10.3)	%
Supply Chain Solutions:
Forwarding	4,217		7,140		(2,923)		(40.9)	%
Logistics	4,271		3,843		428		11.1	%
Other	1,285		1,617		(332)		(20.5)	%
Total Supply Chain Solutions	9,773		12,600		(2,827)		(22.4)	%
Consolidated	$	66,041	$	73,305	$	(7,264)	(9.9)	%

Consolidated volume (in millions)	4,032		4,432		(400)		(9.0)	%

Operating weekdays	191		192		(1)		(0.5)	%

Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air	1,699		1,929		(230)		(11.9)	%
Deferred	1,102		1,417		(315)		(22.2)	%
Ground	15,102		16,309		(1,207)		(7.4)	%
Total U.S. Domestic Package	17,903		19,655		(1,752)		(8.9)	%
International Package:
Domestic	1,571		1,729		(158)		(9.1)	%
Export	1,635		1,699		(64)		(3.8)	%
Total International Package	3,206		3,428		(222)		(6.5)	%
Consolidated	21,109		23,083		(1,974)		(8.6)	%

Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air	$	22.31	$	21.39	$	0.92	4.3	%
Deferred	16.59		15.15		1.44		9.5	%
Ground	11.20		10.83		0.37		3.4	%
Total U.S. Domestic Package	12.59		12.18		0.41		3.4	%
International Package:
Domestic	7.66		7.43		0.23		3.1	%
Export	33.26		35.26		(2.00)		(5.7)	%
Total International Package	20.72		21.22		(0.50)		(2.4)	%
Consolidated	$	13.82	$	13.52	$	0.30	2.2	%

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Detail of Operating Expenses - Year to Date

(unaudited)


	Nine Months Ended
	September 30
	2023		2022		Change		% Change
(in millions)
Compensation and benefits	$	34,187	$	34,434	$	(247)	(0.7)	%
Repairs and maintenance	2,126		2,160		(34)		(1.6)	%
Depreciation and amortization	2,499		2,300		199		8.7	%
Purchased transportation	9,834		13,176		(3,342)		(25.4)	%
Fuel	3,493		4,447		(954)		(21.5)	%
Other occupancy	1,490		1,358		132		9.7	%
Other expenses	5,748		5,531		217		3.9	%
Total operating expenses	$	59,377	$	63,406	$	(4,029)	(6.4)	%

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Consolidated Balance Sheets

September 30, 2023 (unaudited) and December 31, 2022


	September 30, 2023		December 31, 2022
(amounts in millions)

ASSETS
Current Assets:
Cash and cash equivalents	$	4,311	$	5,602
Marketable securities	2,967		1,993
Accounts receivable	9,593		12,729
Less: Allowance for credit losses	(132)		(146)
Accounts receivable, net	9,461		12,583
Other current assets	2,512		2,039
Total Current Assets	19,251		22,217
Property, Plant and Equipment, Net	36,013		34,719
Operating Lease Right-Of-Use Assets	4,162		3,755
Goodwill	4,097		4,223
Intangible Assets, Net	2,892		2,796
Deferred Income Tax Assets	127		139
Other Non-Current Assets	3,739		3,275
Total Assets	$	70,281	$	71,124

LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Current maturities of long-term debt, commercial paper and finance leases	$	2,243	$	2,341
Current maturities of operating leases	664		621
Accounts payable	5,972		7,515
Accrued wages and withholdings	3,341		4,049
Self-insurance reserves	1,065		1,069
Accrued group welfare and retirement plan contributions	1,306		1,078
Other current liabilities	1,226		1,467
Total Current Liabilities	15,817		18,140
Long-Term Debt and Finance Leases	18,882		17,321
Non-Current Operating Leases	3,651		3,238
Pension and Postretirement Benefit Obligations	4,670		4,807
Deferred Income Tax Liabilities	4,601		4,302
Other Non-Current Liabilities	3,480		3,513

Shareowners' Equity:
Class A common stock	2		2
Class B common stock	7		7
Additional paid-in capital	—		—
Retained earnings	20,699		21,326
Accumulated other comprehensive loss	(1,540)		(1,549)
Deferred compensation obligations	9		13
Less: Treasury stock	(9)		(13)
Total Equity for Controlling Interests	19,168		19,786
Noncontrolling interests	12		17
Total Shareowners' Equity	19,180		19,803
Total Liabilities and Shareowners' Equity	$	70,281	$	71,124

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Statements of Consolidated Cash Flows

(unaudited)


(amounts in millions)		Nine Months Ended
		September 30
		2023		2022
Cash Flows From Operating Activities:
	Net income	$	5,103	$	8,095
	Adjustments to reconcile net income to net cash from operating activities:
	Depreciation and amortization	2,499		2,300
	Pension and postretirement benefit expense	729		666
	Pension and postretirement benefit contributions	(1,363)		(2,106)
	Self-insurance reserves	81		182
	Deferred tax (benefit) expense	327		466
	Stock compensation expense	186		850
	Other (gains) losses	89		(25)
	Changes in assets and liabilities, net of effects of business acquisitions:
	Accounts receivable	2,880		1,022
	Other assets	(252)		(98)
	Accounts payable	(2,058)		(952)
	Accrued wages and withholdings	(155)		(59)
	Other liabilities	(157)		481
	Other operating activities	(82)		(50)
	Net cash from operating activities	7,827		10,772

Cash Flows From Investing Activities:
	Capital expenditures	(3,109)		(2,278)
	Proceeds from disposal of businesses, property, plant and equipment	167		12
	Purchases of marketable securities	(3,347)		(195)
	Sales and maturities of marketable securities	2,397		193
	Acquisitions, net of cash acquired	(39)		(106)
	Other investing activities	2		(34)
	Net cash used in investing activities	(3,929)		(2,408)

Cash Flows From Financing Activities:
	Net change in short-term debt	415		—
	Proceeds from long-term borrowings	2,546		—
	Repayments of long-term borrowings	(1,625)		(1,124)
	Purchases of common stock	(2,250)		(2,194)
	Issuances of common stock	190		198
	Dividends	(4,034)		(3,842)
	Other financing activities	(427)		(513)
	Net cash used in financing activities	(5,185)		(7,475)

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash		(4)		(99)

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		(1,291)		790

Cash, Cash Equivalents and Restricted Cash:
	Beginning of period	5,602		10,255
	End of period	$	4,311	$	11,045

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of Free Cash Flow (Non-GAAP measure)

(unaudited)





(amounts in millions)	Nine Months Ended
	September 30
	2023		2022
Cash flows from operating activities	$	7,827	$	10,772
Capital expenditures	(3,109)		(2,278)
Proceeds from disposals of property, plant and equipment	167		12
Other investing activities	2		(34)
Free Cash Flow (Non-GAAP measure)	$	4,887	$	8,472

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of Adjusted Debt to Adjusted EBITDA (Non-GAAP measure)

(unaudited)



(amounts in millions)	TTM(1) Ended		TTM(1) Ended
	September 30, 2023		September 30, 2022
Net income	$	8,556	$	11,188
Add back:
Income tax expense	2,421		3,132
Interest expense	760		695
Depreciation & amortization	3,387		3,054
EBITDA	15,124		18,069
Add back (deduct):
Incentive compensation program redesign	505		—
One-time compensation	61		—
Goodwill impairment charges	125		—
Transformation and other	282		193
Defined benefit plan (gains) and losses	(1,028)		(15)
Investment income and other pension income	(850)		(1,210)
Adjusted EBITDA	$	14,219	$	17,037

Debt and finance leases, including current maturities	$	21,125	$	20,350
Add back:
Non-current pension and postretirement benefit obligations	4,670		6,747
Adjusted total debt	$	25,795	$	27,097

Adjusted total debt/Net income	3.01		2.42

Adjusted total debt/adjusted EBITDA (Non-GAAP)	1.81		1.59

(1) Trailing twelve months.

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of Adjusted Return on Invested Capital (Non-GAAP measure)

(unaudited)



(amounts in millions)	TTM(1) Ended			TTM(1) Ended
	September 30, 2023			September 30, 2022
Net income	$	8,556		$	11,188
Add back (deduct):
Income tax expense	2,421			3,132
Interest expense	760			695
Other pension (income) expense	(1,523)			(1,193)
Investment (income) expense and other	(355)			(32)
Operating profit	$	9,859		$	13,790
Incentive compensation program redesign	505			—
Long-lived asset estimated residual value changes	76			—
One-time compensation	61			—
Goodwill impairment charges	125			—
Transformation and other	282			193
Adjusted operating profit	$	10,908		$	13,983

Average debt and finance leases, including current maturities	$	20,738		$	21,228
Average pension and postretirement benefit obligations	5,709			7,210
Average shareowners' equity	18,084			14,523
Average invested capital	$	44,531		$	42,961

Net income to average invested capital	19.2		%	26.0		%

Adjusted Return on Invested Capital (Non-GAAP)	24.5		%	32.5		%

(1) Trailing twelve months.

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of GAAP and As Adjusted Income Statement Data

(unaudited)


	Three Months Ended September 30,
(in millions, except per share data)	2023										2022
	As Reported (GAAP)		One-Time Compensation(1)		Goodwill Impairment Charges(2)		Transformation & Other Adj.(3)		As Adjusted (Non-GAAP)		As Reported (GAAP)		Transformation & Other Adj.(4)		As Adjusted (Non-GAAP)		% Change As Rep. (GAAP)		% Change As Adj. (Non-GAAP)

U.S. Domestic Package	$	13,089	$	61	$	—	$	33	$	12,995	$	13,708	$	20	$	13,688	(4.5)	%	(5.1)	%
International Package	3,637		—		—		45		3,592		3,802		7		3,795		(4.3)	%	(5.3)	%
Supply Chain Solutions	2,992		—		117		16		2,859		3,538		9		3,529		(15.4)	%	(19.0)	%
Operating expense	19,718		61		117		94		19,446		21,048		36		21,012		(6.3)	%	(7.5)	%

U.S. Domestic Package	$	571	$	61	$	—	$	33	$	665	$	1,666	$	20	$	1,686	(65.7)	%	(60.6)	%
International Package	630		—		—		45		675		997		7		1,004		(36.8)	%	(32.8)	%
Supply Chain Solutions	142		—		117		16		275		450		9		459		(68.4)	%	(40.1)	%
Operating Profit	1,343		61		117		94		1,615		3,113		36		3,149		(56.9)	%	(48.7)	%
Other Income and (Expense):
Other pension income (expense)	66		—		—		—		66		297		—		297		(77.8)	%	(77.8)	%
Investment income (expense) and other	58		—		—		—		58		36		—		36		61.1	%	61.1	%
Interest expense	(199)		—		—		—		(199)		(177)		—		(177)		12.4	%	12.4	%
Total Other Income (Expense)	$	(75)	$	—	$	—	$	—	$	(75)	$	156	$	—	$	156	N/A		N/A
Income Before Income Taxes	1,268		61		117		94		1,540		3,269		36		3,305		(61.2)	%	(53.4)	%
Income Tax Expense	141		15		14		24		194		685		9		694		(79.4)	%	(72.0)	%
Net Income	$	1,127	$	46	$	103	$	70	$	1,346	$	2,584	$	27	$	2,611	(56.4)	%	(48.4)	%

Basic Earnings Per Share	$	1.31	$	0.05	$	0.12	$	0.09	$	1.57	$	2.97	$	0.03	$	3.00	(55.9)	%	(47.7)	%

Diluted Earnings Per Share	$	1.31	$	0.05	$	0.12	$	0.09	$	1.57	$	2.96	$	0.03	$	2.99	(55.7)	%	(47.5)	%

Weighted-average shares outstanding:
Basic	857										870
Diluted	858										872

(1) Represents a one-time payment of $61 million to certain U.S.-based non-union part-time supervisors.

(2) Reflects goodwill impairment charges of $117 million within Supply Chain Solutions.

(3) Reflects other employee benefit costs of $80 million and other costs of $14 million.

(4) Reflects other employee benefits costs of $15 million and other costs of $21 million.

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of GAAP and As Adjusted Income Statement Data

(unaudited)


	Nine Months Ended September 30,
(in millions, except per share data)	2023										2022
	As Reported (GAAP)		One-Time Compensation(1)		Goodwill Impairment Charges(2)		Transformation & Other Adj.(3)		As Adjusted (Non-GAAP)		As Reported (GAAP)		Pension Adj.(4)		Transformation & Other Adj.(5)		As Adjusted (Non-GAAP)		% Change As Rep. (GAAP)		% Change As Adj. (Non-GAAP)

U.S. Domestic Package	$	39,404	$	61	$	—	$	134	$	39,209	$	40,800	$	—	$	89	$	40,711	(3.4)	%	(3.7)	%
International Package	10,884		—		—		42		10,842		11,442		—		22		11,420		(4.9)	%	(5.1)	%
Supply Chain Solutions	9,089		—		125		60		8,904		11,164		—		21		11,143		(18.6)	%	(20.1)	%
Operating expense	59,377		61		125		236		58,955		63,406		—		132		63,274		(6.4)	%	(6.8)	%

U.S. Domestic Package	$	3,639	$	61	$	—	$	134	$	3,834	$	5,157	$	—	$	89	$	5,246	(29.4)	%	(26.9)	%
International Package	2,341		—		—		42		2,383		3,306		—		22		3,328		(29.2)	%	(28.4)	%
Supply Chain Solutions	684		—		125		60		869		1,436		—		21		1,457		(52.4)	%	(40.4)	%
Operating Profit	6,664		61		125		236		7,086		9,899		—		132		10,031		(32.7)	%	(29.4)	%
Other Income and (Expense):
Other pension income (expense)	198		—		—		—		198		926		(33)		—		893		(78.6)	%	(77.8)	%
Investment income (expense) and other	226		—		—		—		226		55		—		—		55		310.9	%	310.9	%
Interest expense	(578)		—		—		—		(578)		(522)		—		—		(522)		10.7	%	10.7	%
Total Other Income (Expense)	$	(154)	$	—	$	—	$	—	$	(154)	$	459	$	(33)	$	—	$	426	N/A		N/A
Income Before Income Taxes	6,510		61		125		236		6,932		10,358		(33)		132		10,457		(37.2)	%	(33.7)	%
Income Tax Expense	1,407		15		16		57		1,495		2,263		(9)		31		2,285		(37.8)	%	(34.6)	%
Net Income	$	5,103	$	46	$	109	$	179	$	5,437	$	8,095	$	(24)	$	101	$	8,172	(37.0)	%	(33.5)	%

Basic Earnings Per Share	$	5.93	$	0.05	$	0.13	$	0.21	$	6.32	$	9.27	$	(0.03)	$	0.12	$	9.36	(36.0)	%	(32.5)	%

Diluted Earnings Per Share	$	5.92	$	0.05	$	0.13	$	0.21	$	6.31	$	9.24	$	(0.03)	$	0.12	$	9.33	(35.9)	%	(32.4)	%

Weighted-average shares outstanding:
Basic	860										873
Diluted	861										876

(1) Represents a one-time payment of $61 million to certain U.S.-based non-union part-time supervisors.

(2) Reflects goodwill impairment charges of $125 million within Supply Chain Solutions.

(3) Reflects other employee benefit costs of $178 million and other costs of $58 million.

(4) Represents the impact of curtailment of benefits effective December 31, 2023, for the Canada LTD Retirement Plan.

(5) Reflects other employee benefits costs of $71 million and other costs of $61 million.

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Supplemental Analysis of Currency - Third Quarter

(unaudited)


Reconciliation of Currency Neutral Revenue Per Piece, Revenue and As Adjusted Operating Profit

	Three Months Ended								Currency
	September 30								Neutral
(in millions, except per piece data)	(GAAP)								(Non-GAAP)
	2023		2022		% Change		Currency		2023 (1)		% Change
Average Revenue Per Piece:
International Package:
Domestic	$	7.73	$	7.31	5.7	%	$	(0.21)	$	7.52	2.9	%
Export	33.09		34.77		(4.8)	%	(0.21)		32.88		(5.4)	%
Total International Package	$	20.78	$	21.07	(1.4)	%	$	(0.21)	$	20.57	(2.4)	%
Consolidated	$	13.81	$	13.58	1.7	%	$	(0.03)	$	13.78	1.5	%

	Three Months Ended								Currency
	September 30								Neutral
	(GAAP)								(Non-GAAP)
	2023		2022		% Change		Currency		2023 (1)		% Change
Revenue (in millions):
U.S. Domestic Package	$	13,660	$	15,374	(11.1)	%	$	—	$	13,660	(11.1)	%
International Package	4,267		4,799		(11.1)	%	(43)		4,224		(12.0)	%
Supply Chain Solutions	3,134		3,988		(21.4)	%	(24)		3,110		(22.0)	%
Total revenue	$	21,061	$	24,161	(12.8)	%	$	(67)	$	20,994	(13.1)	%

	Three Months Ended								Currency
	September 30								Neutral
	(Non-GAAP)								(Non-GAAP)
	2023		2022		% Change		Currency		2023 (1)		% Change
As Adjusted Operating Profit (in millions)(2):
U.S. Domestic Package	$	665	$	1,686	(60.6)	%	$	—	$	665	(60.6)	%
International Package	675		1,004		(32.8)	%	32		707		(29.6)	%
Supply Chain Solutions	275		459		(40.1)	%	6		281		(38.8)	%
Total operating profit	$	1,615	$	3,149	(48.7)	%	$	38	$	1,653	(47.5)	%

(1) Amounts adjusted for period over period foreign currency exchange rate and hedging differences.

(2) See Non-GAAP schedules for reconciliation of adjustments.

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Supplemental Analysis of Currency - Year to Date

(unaudited)


Reconciliation of Currency Neutral Revenue Per Piece, Revenue and As Adjusted Operating Profit

	Nine Months Ended								Currency
	September 30								Neutral
(in millions, except per piece data)	(GAAP)								(Non-GAAP)
	2023		2022		% Change		Currency		2023 (1)		% Change
Average Revenue Per Piece:
International Package:
Domestic	$	7.66	$	7.43	3.1	%	$	0.15	$	7.81	5.1	%
Export	33.26		35.26		(5.7)	%	0.34		33.60		(4.7)	%
Total International Package	$	20.72	$	21.22	(2.4)	%	$	0.24	$	20.96	(1.2)	%
Consolidated	$	13.82	$	13.52	2.2	%	$	0.04	$	13.86	2.5	%

	Nine Months Ended								Currency
	September 30								Neutral
	(GAAP)								(Non-GAAP)
	2023		2022		% Change		Currency		2023 (1)		% Change
Revenue (in millions):
U.S. Domestic Package	$	43,043	$	45,957	(6.3)	%	$	—	$	43,043	(6.3)	%
International Package	13,225		14,748		(10.3)	%	152		13,377		(9.3)	%
Supply Chain Solutions	9,773		12,600		(22.4)	%	33		9,806		(22.2)	%
Total revenue	$	66,041	$	73,305	(9.9)	%	$	185	$	66,226	(9.7)	%

	Nine Months Ended								Currency
	September 30								Neutral
	(Non-GAAP)								(Non-GAAP)
	2023		2022		% Change		Currency		2023 (1)		% Change
As Adjusted Operating Profit (in millions)(2):
U.S. Domestic Package	$	3,834	$	5,246	(26.9)	%	$	—	$	3,834	(26.9)	%
International Package	2,383		3,328		(28.4)	%	115		2,498		(24.9)	%
Supply Chain Solutions	869		1,457		(40.4)	%	(2)		867		(40.5)	%
Total operating profit	$	7,086	$	10,031	(29.4)	%	$	113	$	7,199	(28.2)	%

(1) Amounts adjusted for period over period foreign currency exchange rate and hedging differences.

(2) See Non-GAAP schedules for reconciliation of adjustments.

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Aircraft Fleet - As of September 30, 2023

(unaudited)


Description	UPS Owned and/or Operated	Charters & Leases Operated by Others	On Order	Under Option
Operating:
Boeing 757-200	75	—	—	—
Boeing 767-300	75	—	24	—
Boeing 767-300BCF	6	—	—	—
Boeing 767-300BDSF	4	—	—	—
Airbus A300-600	52	—	—	—
Boeing MD-11(1)	38	—	—	—
Boeing 747-400F	11	—	—	—
Boeing 747-400BCF	2	—	—	—
Boeing 747-8F	28	—	2	—
Other	—	270	—	—
Total	291	270	26	—

(1) One of the MD-11 aircraft shown above has been retired from operational use as of September 30, 2023. We expect to retire an additional two MD-11 aircraft during the remainder of 2023.

Prior year amounts may have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.