Exhibit 99.1
Item 6. Selected Financial Data
The following table sets forth selected financial data for each of the five years in the period ended December 31, 2004 (amounts in millions, except per share amounts). This financial data should be read together with our consolidated financial statements and related notes, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and other financial data appearing elsewhere in this report.
| Years Ended December 31, |
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| 2004 |
2003 |
2002 |
2001 |
2000 * |
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| Selected Income Statement Data |
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| Revenue: |
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| U.S. domestic package |
$ | 26,960 | $ | 25,362 | $ | 24,280 | $ | 24,391 | ||||||||||||
| International package |
6,809 | 5,609 | 4,720 | 4,280 | ||||||||||||||||
| Supply chain solutions |
2,813 | 2,514 | 2,272 | 1,650 | ||||||||||||||||
| Total revenue |
36,582 | 33,485 | 31,272 | 30,321 | 29,498 | |||||||||||||||
| Operating expenses: |
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| Compensation and benefits |
20,916 | 19,328 | 17,940 | 17,397 | 16,546 | |||||||||||||||
| Other |
10,677 | 9,712 | 9,236 | 8,962 | 8,440 | |||||||||||||||
| Total operating expenses |
31,593 | 29,040 | 27,176 | 26,359 | 24,986 | |||||||||||||||
| Operating profit (loss): |
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| U.S. domestic package |
3,702 | 3,657 | 3,925 | 3,969 | ||||||||||||||||
| International package |
1,149 | 732 | 338 | 139 | ||||||||||||||||
| Supply chain solutions |
138 | 56 | (167 | ) | (146 | ) | ||||||||||||||
| Total operating profit |
4,989 | 4,445 | 4,096 | 3,962 | 4,512 | |||||||||||||||
| Other income (expense): |
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| Investment income |
82 | 18 | 63 | 159 | 527 | |||||||||||||||
| Interest expense |
(149 | ) | (121 | ) | (173 | ) | (184 | ) | (205 | ) | ||||||||||
| Gain on redemption of long-term debt |
— | 28 | — | — | — | |||||||||||||||
| Tax assessment |
— | — | 1,023 | — | — | |||||||||||||||
| Income before income taxes |
4,922 | 4,370 | 5,009 | 3,937 | 4,834 | |||||||||||||||
| Income taxes |
(1,589 | ) | (1,472 | ) | (1,755 | ) | (1,512 | ) | (1,900 | ) | ||||||||||
| Cumulative effect of changes in accounting principles |
— | — | (72 | ) | (26 | ) | — | |||||||||||||
| Net income |
$ | 3,333 | $ | 2,898 | $ | 3,182 | $ | 2,399 | $ | 2,934 | ||||||||||
| Per share amounts: |
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| Basic earnings per share |
$ | 2.95 | $ | 2.57 | $ | 2.84 | $ | 2.13 | $ | 2.54 | ||||||||||
| Diluted earnings per share |
$ | 2.93 | $ | 2.55 | $ | 2.81 | $ | 2.10 | $ | 2.50 | ||||||||||
| Dividends declared per share |
$ | 1.12 | $ | 0.92 | $ | 0.76 | $ | 0.76 | $ | 0.68 | ||||||||||
| Weighted Average Shares Outstanding |
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| Basic |
1,129 | 1,128 | 1,120 | 1,126 | 1,153 | |||||||||||||||
| Diluted |
1,137 | 1,138 | 1,134 | 1,144 | 1,175 | |||||||||||||||
| As of December 31, |
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| 2004 |
2003 |
2002 |
2001 |
2000 |
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| Selected Balance Sheet Data |
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| Working capital |
$ | 6,076 | $ | 4,335 | $ | 3,183 | $ | 2,811 | $ | 2,623 | ||||||||||
| Long-term debt |
3,261 | 3,149 | 3,495 | 4,648 | 2,981 | |||||||||||||||
| Total assets |
33,026 | 29,734 | 26,868 | 24,636 | 21,662 | |||||||||||||||
| Shareowners’ equity |
16,384 | 14,852 | 12,455 | 10,248 | 9,735 | |||||||||||||||
| * | Revenue and operating profit by segment in 2000 has not been restated. |
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