Exhibit 99.1

United Parcel Service, Inc.

Selected Financial Data - Quarterly 2011

(unaudited)

(inclusive of change in pension accounting)

 

 

 

 

      

 

 

  
    Q1 2011     Q2 2011     Q3 2011     Q4 2011     2011         Q1 2011     Q2 2011     Q3 2011     Q4 2011     2011  
 

 

 

      

 

 

  

(amounts in millions, except per share data)

                      

Statement of Income Data:

                      

Revenue:

                      

U.S. Domestic Package

   $ 7,543      $ 7,737      $ 7,767      $ 8,670      $ 31,717          6.2 %      6.4 %      6.5 %      7.3 %      6.6 % 

International Package

     2,900        3,139        3,057        3,153        12,249          9.9 %      13.3 %      14.2 %      3.5 %      10.0 % 

Supply Chain & Freight

     2,139        2,315        2,342        2,343        9,139          7.6 %      7.0 %      5.3 %      2.1 %      5.4 % 
 

 

 

      

 

 

  

Total revenue

     12,582        13,191        13,166        14,166        53,105          7.3 %      8.1 %      8.0 %      5.6 %      7.2 % 

Operating expenses:

                      

Compensation and benefits

     6,562        6,636        6,647        7,730        27,575          -0.1 %      1.4 %      3.2 %      10.4 %      3.8 % 

Other

     4,548        4,810        4,853        5,239        19,450          9.7 %      12.2 %      16.5 %      10.3 %      12.1 % 
 

 

 

      

 

 

  

Total operating expenses

     11,110        11,446        11,500        12,969        47,025          3.7 %      5.7 %      8.4 %      10.4 %      7.1 % 

Operating profit:

                      

U.S. Domestic Package

     880        997        1,046        841        3,764          64.2 %      38.1 %      5.2 %      -14.7 %      16.2 % 

International Package

     453        505        417        334        1,709          7.9 %      -1.6 %      1.5 %      -31.4 %      -6.7 % 

Supply Chain & Freight

     139        243        203        22        607          148.2 %      78.7 %      12.2 %      -88.9 %      6.1 % 
 

 

 

      

 

 

  

Total operating profit

     1,472        1,745        1,666        1,197        6,080          45.5 %      27.3 %      5.0 %      -28.4 %      7.8 % 

Other income (expense):

                      

Investment income

     11        9        16        8        44          N/A        N/A        6.7 %      -20.0 %      N/A   

Interest expense

     (85 )      (83 )      (84 )      (96 )      (348 )        0.0 %      -1.2 %      -7.7 %      2.1 %      -1.7 % 
 

 

 

      

 

 

  

Total other income (expense)

     (74 )      (74 )      (68 )      (88 )      (304 )        -16.9 %      -27.5 %      -10.5 %      4.8 %      -13.4 % 
 

 

 

      

 

 

  

Income before income taxes

     1,398        1,671        1,598        1,109        5,776          51.5 %      31.7 %      5.8 %      -30.2 %      9.2 % 

Income tax expense

     483        579        526        384        1,972          18.4 %      30.7 %      -2.2 %      -31.8 %      1.0 % 
 

 

 

      

 

 

  

Net income

   $ 915      $ 1,092      $ 1,072      $ 725      $ 3,804          77.7 %      32.2 %      10.3 %      -29.3 %      14.0 % 
 

 

 

      

 

 

  

Per share amounts

                      

Basic earnings per share

   $ 0.92      $ 1.11      $ 1.10      $ 0.75      $ 3.88          76.9 %      33.7 %      12.2 %      -27.2 %      15.5 % 

Diluted earnings per share

   $ 0.91      $ 1.09      $ 1.09      $ 0.74      $ 3.84          78.4 %      32.9 %      12.4 %      -27.5 %      15.3 % 

Dividends declared per share

   $ 0.52      $ 0.52      $ 0.52      $ 0.52      $ 2.08          10.6 %      10.6 %      10.6 %      10.6 %      10.6 % 

Weighted-Average Shares Outstanding

                      

Basic

     992        988        977        968        981          -0.3 %      -0.6 %      -1.7 %      -2.6 %      -1.3 % 

Diluted

     1,002        998        987        977        991          -0.2 %      -0.5 %      -1.7 %      -2.7 %      -1.2 % 

As Adjusted Income Data:

                      

Operating profit:

                      

U.S. Domestic Package (1)

   $ 880      $ 1,012      $ 1,046      $ 1,320      $ 4,258          38.8 %      40.2 %      18.2 %      29.8 %      30.7 % 

International Package (1)

     453        505        417        505        1,880          7.9 %      -1.6 %      1.5 %      -4.5 %      0.4 % 

Supply Chain & Freight (1)

     139        195        203        199        736          47.9 %      43.4 %      12.2 %      10.6 %      24.5 % 
 

 

 

      

 

 

  

Total operating profit

   $ 1,472      $ 1,712      $ 1,666      $ 2,024      $ 6,874          28.2 %      24.9 %      12.8 %      17.3 %      20.1 % 

Income before income taxes (1)

   $ 1,398      $ 1,638      $ 1,598      $ 1,936      $ 6,570          32.0 %      29.1 %      14.1 %      17.9 %      22.3 % 

Net income (2)

   $ 915      $ 1,072      $ 1,072      $ 1,252      $ 4,311          32.6 %      29.8 %      17.7 %      17.2 %      23.3 % 

Basic earnings per share (2)

   $ 0.92      $ 1.09      $ 1.10      $ 1.29      $ 4.39          33.3 %      31.3 %      19.6 %      20.6 %      24.7 % 

Diluted earnings per share (2)

   $ 0.91      $ 1.07      $ 1.09      $ 1.28      $ 4.35          31.9 %      30.5 %      19.8 %      20.8 %      25.0 % 

 

(1) Second quarter 2011 operating profit and consolidated income before income taxes exclude the impact of gains and losses on certain real estate transactions, including a $15 million loss for the U.S. Domestic Package segment and a $48 million gain in the Supply Chain & Freight segment. Fourth quarter 2011 operating profit and consolidated income before income taxes exclude the impact of the pension mark-to-market loss related to pension expense recognized outside of a 10% corridor of $827 million, allocated between U.S. Domestic Package segment ($479 million), International Package segment ($171 million), and Supply Chain & Freight segment ($177 million).

 

(2) Second quarter 2011 net income and earnings per share amounts exclude the after-tax impact of the U.S. Domestic Package and Supply Chain & Freight real estate transactions described in (1), which totals a combined $20 million. Fourth quarter 2011 net income and earnings per share amounts exclude the impact of the pension mark-to-market adjustment described in (1), which totals $527 million.

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

United Parcel Service, Inc.

Selected Financial Data - Quarterly 2010

(unaudited)

(inclusive of change in pension accounting)

 

 

 

 

    

 

  

 

 

  
    Q1 2010     Q2 2010     Q3 2010     Q4 2010     2010         Q1 2010     Q2 2010     Q3 2010     Q4 2010     2010  
 

 

 

      

 

 

  

(amounts in millions, except per share data)

                      

Statement of Income Data:

                      

Revenue:

                      

U.S. Domestic Package

   $ 7,102      $ 7,269      $ 7,291      $ 8,080      $ 29,742          2.2 %      7.1 %      6.2 %      7.0 %      5.6 % 

International Package

     2,639        2,771        2,676        3,047        11,133          17.8 %      23.4 %      10.5 %      9.2 %      14.8 % 

Supply Chain & Freight

     1,987        2,164        2,225        2,294        8,670          13.6 %      20.6 %      19.4 %      12.8 %      16.5 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue

     11,728        12,204        12,192        13,421        49,545          7.2 %      12.7 %      9.3 %      8.4 %      9.4 % 

Operating expenses:

                      

Compensation and benefits

     6,569        6,546        6,441        7,001        26,557          2.6 %      2.3 %      0.5 %      4.2 %      2.4 % 

Other

     4,147        4,287        4,165        4,748        17,347          6.7 %      19.0 %      7.3 %      6.0 %      9.4 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

     10,716        10,833        10,606        11,749        43,904          4.1 %      8.3 %      3.0 %      4.9 %      5.1 % 

Operating profit:

                      

U.S. Domestic Package

     536        722        994        986        3,238          62.9 %      71.1 %      117.0 %      38.9 %      68.7 % 

International Package

     420        513        411        487        1,831          52.2 %      86.5 %      39.3 %      12.5 %      43.2 % 

Supply Chain & Freight

     56        136        181        199        572          30.2 %      4.6 %      70.8 %      N/A        84.5 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating profit

     1,012        1,371        1,586        1,672        5,641          56.2 %      65.8 %      84.6 %      42.4 %      60.8 % 

Other income (expense):

                      

Investment income (loss)

     (4 )      (18 )      15        10        3          N/A        -18.2 %      150.0 %      -23.1 %      -70.0 % 

Interest expense

     (85 )      (84 )      (91 )      (94 )      (354 )        3.7 %      -53.6 %      -2.2 %      5.6 %      -20.4 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other income (expense)

     (89 )      (102 )      (76 )      (84 )      (351 )        29.0 %      -49.8 %      -12.6 %      10.5 %      -19.3 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

     923        1,269        1,510        1,588        5,290          59.4 %      103.4 %      95.6 %      44.6 %      72.1 % 

Income tax expense

     408        443        538        563        1,952          84.6 %      99.5 %      101.5 %      42.5 %      76.7 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

   $ 515      $ 826      $ 972      $ 1,025      $ 3,338          43.9 %      105.5 %      92.5 %      45.8 %      69.6 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Per share amounts

                      

Basic earnings per share

   $ 0.52      $ 0.83      $ 0.98      $ 1.03      $ 3.36          44.4 %      107.5 %      92.2 %      45.1 %      70.6 % 

Diluted earnings per share

   $ 0.51      $ 0.82      $ 0.97      $ 1.02      $ 3.33          41.7 %      105.0 %      94.0 %      45.7 %      69.9 % 

Dividends declared per share

   $ 0.47      $ 0.47      $ 0.47      $ 0.47      $ 1.88          4.4 %      4.4 %      4.4 %      4.4 %      4.4 % 

Weighted-Average Shares Outstanding

                      

Basic

     995        994        994        994        994          -0.2 %      -0.4 %      -0.3 %      -0.3 %      -0.4 % 

Diluted

     1,004        1,003        1,004        1,004        1,003          0.1 %      -0.1 %      0.0 %      0.0 %      -0.1 % 

As Adjusted Income Data:

                      

Operating profit:

                      

U.S. Domestic Package (1), (2)

   $ 634      $ 722      $ 885      $ 1,017      $ 3,258          24.3 %      71.1 %      93.2 %      43.2 %      55.1 % 

International Package (1)

     420        513        411        529        1,873          52.2 %      86.5 %      39.3 %      17.8 %      44.6 % 

Supply Chain & Freight (1), (3)

     94        136        181        180        591          118.6 %      4.6 %      70.8 %      N/A        90.6 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating profit

   $ 1,148      $ 1,371      $ 1,477      $ 1,726      $ 5,722          38.5 %      65.8 %      71.9 %      45.0 %      54.4 % 

Income before income taxes (1), (2), (3)

   $ 1,059      $ 1,269      $ 1,401      $ 1,642      $ 5,371          39.3 %      81.0 %      81.5 %      47.4 %      60.5 % 

Net income (4)

   $ 690      $ 826      $ 911      $ 1,068      $ 3,495          45.6 %      83.6 %      80.4 %      49.6 %      63.1 % 

Basic earnings per share (4)

   $ 0.69      $ 0.83      $ 0.92      $ 1.07      $ 3.52          43.8 %      84.4 %      80.4 %      48.6 %      63.7 % 

Diluted earnings per share (4)

   $ 0.69      $ 0.82      $ 0.91      $ 1.06      $ 3.48          46.8 %      82.2 %      82.0 %      49.3 %      63.4 % 

 

(1) Fourth quarter operating profit and consolidated income before income taxes exclude the impact of the pension mark-to-market loss related to pension expense recognized outside of a 10% corridor of $112 million, allocated between U.S. Domestic Package segment ($31 million), International Package segment ($42 million), and Supply Chain & Freight segment ($39 million).

 

(2) First quarter U.S. Domestic Package operating profit and consolidated income before income taxes exclude a $98 million restructuring charge related to the reorganization of our domestic management structure. This charge reflects the value of voluntary retirement benefits, severance benefits and unvested stock compensation. Third quarter U.S. Domestic Package operating profit and consolidated income before income taxes exclude a $109 million gain on the sale of real estate.

 

(3) First quarter Supply Chain & Freight operating profit and consolidated income before income taxes exclude a $38 million loss on the sale of a specialized transportation business in Germany. Additionally, fourth quarter Supply Chain & Freight operating profit and consolidated income before income taxes exclude a $71 million gain on the sale of UPS Logistics Technologies. This gain is partially offset by the exclusion of a $13 million fair value adjustment loss related to the guarantee associated with the sale of a specialized transportation business in Germany that occurred in the first quarter.

 

(4) First quarter net income and earnings per share amounts exclude the after-tax impact of the U.S. Domestic Package restructuring charge described in (2) and the business sale described in (3), which total a combined $99 million. Additionally, first quarter net income and earnings per share exclude a $76 million charge to income tax expense, resulting from a change in the tax filing status of a German subsidiary. Third quarter net income and earnings per share exclude the after-tax impact of the real estate sale described in (2), which totals $61 million. Fourth quarter net income and earnings per share amounts exclude the mark-to-market loss, described in (1), and the gain related to the disposition of businesses, described in (3), which combined to decrease net income by $43 million.

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

United Parcel Service, Inc.

Selected Financial Data - Quarterly 2009

(unaudited)

(inclusive of change in pension accounting)

 

 

 

 

    

 

  

 

 

  
    Q1 2009     Q2 2009     Q3 2009     Q4 2009     2009         Q1 2009     Q2 2009     Q3 2009     Q4 2009     2009  
 

 

 

      

 

 

  

(amounts in millions, except per share data)

                      

Statement of Income Data:

                      

Revenue:

                      

U.S. Domestic Package

   $ 6,949      $ 6,789      $ 6,868      $ 7,552      $ 28,158          -10.2 %      -12.0 %      -12.4 %      -5.5 %      -10.0 % 

International Package

     2,240        2,246        2,422        2,791        9,699          -18.8 %      -23.8 %      -17.9 %      5.8 %      -14.1 % 

Supply Chain & Freight

     1,749        1,794        1,863        2,034        7,440          -19.8 %      -23.3 %      -19.8 %      -1.8 %      -16.5 % 
 

 

 

      

 

 

  

Total revenue

     10,938        10,829        11,153        12,377        45,297          -13.7 %      -16.7 %      -14.9 %      -2.5 %      -12.0 % 

Operating expenses:

                      

Compensation and benefits

     6,402        6,398        6,411        6,722        25,933          -1.0 %      -1.4 %      0.3 %      -35.8 %      -13.1 % 

Other

     3,888        3,604        3,883        4,481        15,856          -17.0 %      -28.3 %      -23.2 %      -15.1 %      -20.9 % 
 

 

 

      

 

 

  

Total operating expenses

     10,290        10,002        10,294        11,203        41,789          -7.7 %      -13.1 %      -10.1 %      -28.9 %      -16.2 % 

Operating profit:

                      

U.S. Domestic Package

     329        422        458        710        1,919          -66.6 %      -54.4 %      -59.9 %      N/A        133.2 % 

International Package

     276        275        295        433        1,279          -34.9 %      -32.8 %      -24.2 %      N/A        2.6 % 

Supply Chain & Freight

     43        130        106        31        310          -62.9 %      -13.9 %      -19.7 %      N/A        N/A   
 

 

 

      

 

 

  

Total operating profit

     648        827        859        1,174        3,508          -57.5 %      -44.3 %      -48.4 %      N/A        116.7 % 

Other income (expense):

                      

Investment income (loss)

     13        (22 )      6        13        10          -77.2 %      N/A        N/A        -23.5 %      -86.7 % 

Interest expense

     (82 )      (181 )      (93 )      (89 )      (445 )        -38.8 %      74.0 %      -10.6 %      -11.0 %      0.7 % 
 

 

 

      

 

 

  

Total other income (expense)

     (69 )      (203 )      (87 )      (76 )      (435 )        -10.4 %      125.6 %      -25.6 %      -8.4 %      18.5 % 
 

 

 

      

 

 

  

Income before income taxes

     579        624        772        1,098        3,073          -60.0 %      -55.3 %      -50.1 %      N/A        145.4 % 

Income tax expense

     221        222        267        395        1,105          -57.7 %      -55.9 %      -52.1 %      N/A        85.1 % 
 

 

 

      

 

 

  

Net income

   $ 358      $ 402      $ 505      $ 703      $ 1,968          -61.3 %      -55.0 %      -49.0 %      N/A        200.5 % 
 

 

 

      

 

 

  

Per share amounts

                      

Basic earnings per share

   $ 0.36      $ 0.40      $ 0.51      $ 0.71      $ 1.97          -59.6 %      -54.0 %      -48.0 %      N/A        207.8 % 

Diluted earnings per share

   $ 0.36      $ 0.40      $ 0.50      $ 0.70      $ 1.96          -59.6 %      -54.0 %      -49.0 %      N/A        206.3 % 

Dividends declared per share

   $ 0.45      $ 0.45      $ 0.45      $ 0.45      $ 1.80          0.0 %      0.0 %      0.0 %      0.0 %      0.0 % 

Weighted-Average Shares Outstanding

                      

Basic

     997        998        997        997        998          -3.9 %      -2.3 %      -0.9 %      -0.2 %      -1.8 % 

Diluted

     1,003        1,004        1,004        1,004        1,004          -3.9 %      -2.4 %      -0.9 %      0.5 %      -1.8 % 

As Adjusted Income Data:

                      

Operating profit:

                      

U.S. Domestic Package (1)

   $ 510      $ 422      $ 458      $ 710      $ 2,100          -48.2 %      -54.4 %      -59.9 %      -26.0 %      -47.7 % 

International Package (1)

     276        275        295        449        1,295          -34.9 %      -32.8 %      -24.2 %      13.4 %      -20.0 % 

Supply Chain & Freight

     43        130        106        31        310          -62.9 %      -13.9 %      -19.7 %      -44.6 %      -31.9 % 
 

 

 

      

 

 

  

Total operating profit

   $ 829      $ 827      $ 859      $ 1,190      $ 3,705          -45.6 %      -44.3 %      -48.4 %      -15.7 %      -39.1 % 

Income before income taxes (1), (2)

   $ 760      $ 701      $ 772      $ 1,114      $ 3,347          -47.5 %      -49.8 %      -50.1 %      -32.8 %      -44.7 % 

Net income (3)

   $ 474      $ 450      $ 505      $ 714      $ 2,143          -48.8 %      -49.6 %      -49.0 %      -15.9 %      -41.4 % 

Basic earnings per share (3)

   $ 0.48      $ 0.45      $ 0.51      $ 0.72      $ 2.15          -46.1 %      -48.3 %      -48.0 %      -15.3 %      -40.3 % 

Diluted earnings per share (3)

   $ 0.47      $ 0.45      $ 0.50      $ 0.71      $ 2.13          -47.2 %      -48.3 %      -49.0 %      -16.5 %      -40.5 % 

 

(1) First quarter 2009 U.S. Domestic Package operating profit and consolidated income before income taxes exclude a $181 million impairment charge on our McDonnell-Douglas DC-8-71 and DC-8-73 airframes, engines, and parts, due to an acceleration of the planned retirement of these aircraft. Fourth quarter International Package operating profit and consolidated income before income taxes exclude a $16 million pension mark-to-market loss related to pension expense recognized outside of a 10% corridor.

 

(2) Second quarter 2009 interest expense and consolidated income before income taxes exclude a $77 million charge for the remeasurement of certain obligations denominated in foreign currencies, in which hedge accounting was not able to be applied.

 

(3) First quarter 2009 net income and earnings per share amounts exclude the after-tax effect of the impairment charge discussed in (1), which totals $116 million. Second quarter 2009 net income and earnings per share amounts exclude the after-tax effect of the currency remeasurement charge discussed in (2), which totals $48 million. Fourth quarter 2009 net income and earnings per share amounts exclude the after-tax effect of the mark-to-market loss related to pension expense discussed in (1), which totals $11 million.

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

 

 

 

 

 

 

 

 

 

 

 

 

United Parcel Service, Inc.

Selected Financial Data - Quarterly 2008

(unaudited)

(inclusive of change in pension accounting)

 

 

 

 

    

 

  

 

 

  
    Q1 2008     Q2 2008     Q3 2008     Q4 2008     2008         Q1 2008     Q2 2008     Q3 2008     Q4 2008     2008  
 

 

 

      

 

 

  

(amounts in millions, except per share data)

                      

Statement of Income Data:

                      

Revenue:

                      

U.S. Domestic Package

   $ 7,735      $ 7,714      $ 7,841      $ 7,988      $ 31,278          2.4 %      1.8 %      3.9 %      -3.9 %      0.9 % 

International Package

     2,759        2,948        2,949        2,637        11,293          15.7 %      17.9 %      16.6 %      -8.0 %      9.8 % 

Supply Chain & Freight

     2,181        2,339        2,323        2,072        8,915          10.8 %      10.9 %      9.0 %      -6.5 %      5.8 % 
 

 

 

      

 

 

  

Total revenue

     12,675        13,001        13,113        12,697        51,486          6.5 %      6.7 %      7.4 %      -5.2 %      3.6 % 

Operating expenses:

                      

Compensation and benefits

     6,468        6,490        6,393        10,475        29,826          2.8 %      3.4 %      3.0 %      -18.1 %      -5.5 % 

Other

     4,682        5,025        5,056        5,278        20,041          11.3 %      22.7 %      19.1 %      9.5 %      15.4 % 
 

 

 

      

 

 

  

Total operating expenses

     11,150        11,515        11,449        15,753        49,867          6.2 %      11.0 %      9.6 %      -10.6 %      1.9 % 

Operating profit (loss):

                      

U.S. Domestic Package

     985        926        1,143        (2,231 )      823          0.4 %      -24.9 %      -9.9 %      N/A        N/A   

International Package

     424        409        389        24        1,246          12.8 %      -14.8 %      -10.2 %      N/A        -33.4 % 

Supply Chain & Freight

     116        151        132        (849 )      (450 )        132.0 %      48.0 %      135.7 %      N/A        N/A   
 

 

 

      

 

 

  

Total operating profit (loss)

     1,525        1,486        1,664        (3,056 )      1,619          8.4 %      -18.1 %      -5.3 %      N/A        N/A   

Other income (expense):

                      

Investment income (loss)

     57        14        (13 )      17        75          N/A        -50.0 %      N/A        -60.5 %      -24.2 % 

Interest expense

     (134 )      (104 )      (104 )      (100 )      (442 )        173.5 %      70.5 %      96.2 %      20.5 %      79.7 % 
 

 

 

      

 

 

  

Total other income (expense)

     (77 )      (90 )      (117 )      (83 )      (367 )        120.0 %      172.7 %      200.0 %      107.5 %      149.7 % 
 

 

 

      

 

 

  

Income before income taxes

     1,448        1,396        1,547        (3,139 )      1,252          5.5 %      -21.7 %      -10.0 %      N/A        N/A   

Income tax expense (benefit)

     522        503        557        (985 )      597          4.8 %      -22.3 %      -8.8 %      N/A        N/A   
 

 

 

      

 

 

  

Net income (loss)

   $ 926      $ 893      $ 990      $ (2,154 )    $ 655          5.9 %      -21.3 %      -10.6 %      N/A        N/A   
 

 

 

      

 

 

  

Per share amounts

                      

Basic earnings per share

   $ 0.89      $ 0.87      $ 0.98      $ (2.16 )    $ 0.64          8.5 %      -18.7 %      -6.7 %      N/A        N/A   

Diluted earnings per share

   $ 0.89      $ 0.87      $ 0.98      $ (2.16 )    $ 0.64          9.9 %      -17.9 %      -6.7 %      N/A        N/A   

Dividends declared per share

   $ 0.45      $ 0.45      $ 0.45      $ 0.45      $ 1.80          7.1 %      7.1 %      7.1 %      7.1 %      7.1 % 

Weighted-Average Shares Outstanding

                      

Basic

     1,037        1,021        1,006        999        1,016          -3.1 %      -3.7 %      -4.3 %      -4.6 %      -3.9 % 

Diluted

     1,044        1,029        1,013        999        1,022          -2.9 %      -3.5 %      -4.3 %      -4.6 %      -3.9 % 

As Adjusted Income Data:

                      

Operating profit:

                      

U.S. Domestic Package (1)

   $ 985      $ 926      $ 1,143      $ 959      $ 4,013          -17.4 %      -24.9 %      -9.9 %      -23.2 %      -18.8 % 

International Package (1), (2)

     424        409        389        396        1,618          -4.7 %      -14.8 %      -10.2 %      -29.7 %      -15.8 % 

Supply Chain & Freight (1), (2)

     116        151        132        56        455          100.0 %      48.0 %      29.4 %      -35.6 %      30.4 % 
 

 

 

      

 

 

  

Total operating profit

   $ 1,525      $ 1,486      $ 1,664      $ 1,411      $ 6,086          -10.1 %      -18.1 %      -7.7 %      -25.7 %      -15.6 % 

Income before income taxes (1), (2)

   $ 1,448      $ 1,396      $ 1,547      $ 1,328      $ 5,719          -12.8 %      -21.7 %      -12.3 %      -28.5 %      -19.1 % 

Net income (3)

   $ 926      $ 893      $ 990      $ 849      $ 3,658          -12.5 %      -21.3 %      -13.0 %      -26.9 %      -18.6 % 

Basic earnings per share (3)

   $ 0.89      $ 0.87      $ 0.98      $ 0.85      $ 3.60          -10.1 %      -18.7 %      -9.3 %      -23.4 %      -15.3 % 

Diluted earnings per share (3)

   $ 0.89      $ 0.87      $ 0.98      $ 0.85      $ 3.58          -9.2 %      -17.9 %      -9.3 %      -20.6 %      -15.4 % 

 

 

(1) Fourth quarter operating profit and consolidated income before income taxes exclude the impact of the pension mark-to-market loss related to pension expense recognized outside of a 10% corridor of $3.892 billion, allocated between U.S. Domestic Package segment ($3.190 billion), International Package segment ($345 million), and Supply Chain & Freight segment ($357 million).

 

(2) Fourth quarter adjusted operating profit and income before income taxes exclude a $548 million goodwill impairment charge in our UPS Freight unit within the Supply Chain & Freight segment, and a $27 million intangible impairment charge in our European International Package operations.

 

(3) Fourth quarter net income and earnings per share amounts exclude the mark-to-market loss, described in (1), which totals $2.428 billion, and the impact of the impairment charges described in (2), which totals $575 million (there was no tax benefit to these charges). Adjusted diluted earnings per share for the fourth quarter was calculated based on weighted-average shares outstanding of 1.004 billion.

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

United Parcel Service, Inc.

Selected Financial Data - Quarterly 2007

(unaudited)

(inclusive of change in pension accounting)

 

  

 

 

  
     Q1 2007     Q2 2007     Q3 2007     Q4 2007     2007  
  

 

 

  

(amounts in millions, except per share data)

           

Statement of Income Data:

           

Revenue:

           

U.S. Domestic Package

    $ 7,552      $ 7,579      $ 7,545      $ 8,309      $ 30,985   

International Package

      2,385        2,500        2,529        2,867        10,281   

Supply Chain & Freight

      1,969        2,110        2,131        2,216        8,426   
  

 

 

  

Total revenue

      11,906        12,189        12,205        13,392        49,692   

Operating expenses:

           

Compensation and benefits

      6,292        6,277        6,204        12,792        31,565   

Other

      4,207        4,097        4,244        4,821        17,369   
  

 

 

  

Total operating expenses

      10,499        10,374        10,448        17,613        48,934   

Operating profit (loss):

           

U.S. Domestic Package

      981        1,233        1,268        (4,888 )      (1,406 ) 

International Package

      376        480        433        581        1,870   

Supply Chain & Freight

      50        102        56        86        294   
  

 

 

  

Total operating profit (loss)

      1,407        1,815        1,757        (4,221 )      758   

Other income (expense):

           

Investment income

      14        28        14        43        99   

Interest expense

      (49 )      (61 )      (53 )      (83 )      (246 ) 
  

 

 

  

Total other income (expense)

      (35 )      (33 )      (39 )      (40 )      (147 ) 
  

 

 

  

Income (loss) before income taxes

      1,372        1,782        1,718        (4,261 )      611   

Income tax expense (benefit)

      498        647        611        (1,641 )      115   
  

 

 

  

Net income (loss)

    $ 874      $ 1,135      $ 1,107      $ (2,620 )    $ 496   
  

 

 

  

Per share amounts

           

Basic earnings (loss) per share

    $ 0.82      $ 1.07      $ 1.05      $ (2.50 )    $ 0.47   

Diluted earnings (loss) per share

    $ 0.81      $ 1.06      $ 1.05      $ (2.50 )    $ 0.47   

Dividends declared per share

    $ 0.42      $ 0.42      $ 0.42      $ 0.42      $ 1.68   

Weighted-Average Shares Outstanding

           

Basic

      1,070        1,060        1,051        1,047        1,057   

Diluted

      1,075        1,066        1,058        1,047        1,063   

As Adjusted Income Data:

           

Operating profit:

           

U.S. Domestic Package (1), (2)

    $ 1,193      $ 1,233      $ 1,268      $ 1,248      $ 4,942   

International Package (1), (2)

      445        480        433        563        1,921   

Supply Chain & Freight (1), (2)

      58        102        102        87        349   
  

 

 

  

Total operating profit

    $ 1,696      $ 1,815      $ 1,803      $ 1,898      $ 7,212   

Income before income taxes (1), (2)

    $ 1,661      $ 1,782      $ 1,764      $ 1,858      $ 7,065   

Net income (3)

    $ 1,058      $ 1,135      $ 1,138      $ 1,162      $ 4,493   

Basic earnings per share (3)

    $ 0.99      $ 1.07      $ 1.08      $ 1.11      $ 4.25   

Diluted earnings per share (3)

    $ 0.98      $ 1.06      $ 1.08      $ 1.10      $ 4.23   

 

(1) Fourth quarter operating profit and consolidated income before income taxes exclude the impact of the pension mark-to-market loss related to pension expense recognized outside of a 10% corridor of $19 million, allocated between U.S. Domestic Package segment ($36 million) and Supply Chain & Freight segment ($1 million), partially offset by a mark-to-market gain at International Package segment ($18 million).

 

(2) First quarter 2007 adjusted operating profit and income before income taxes exclude an impairment charge on Boeing 727 and 747 aircraft, and related engines and parts, of $221 million ($159 million U.S. Domestic Package and $62 million International Package), due to the acceleration of the planned retirement of these aircraft. First quarter 2007 adjusted operating profit and income before income taxes also exclude a charge related to the special voluntary separation opportunity (“SVSO”), which was accepted by 195, or 30%, of the eligible employees. We recorded a charge to expense of $68 million ($53 million U.S. Domestic Package, $7 million International Package, and $8 million Supply Chain & Freight), to reflect the cash payout and the acceleration of stock compensation and certain retiree healthcare benefits under the SVSO program.

 

     Third quarter adjusted operating profit and income before income taxes exclude a $46 million charge related to the restructuring and disposal of certain operations in France within the Supply Chain & Freight segment. Fourth quarter adjusted operating profit and income before income taxes exclude a $6.100 billion charge in the U.S. Domestic Package segment related to the withdrawal from the Central States, Southeast and Southwest Areas Pension Fund upon ratification of our national master agreement with the International Brotherhood of Teamsters.

 

(3) First quarter net income and earnings per share amounts exclude the after-tax impact of the aircraft impairment and SVSO charges described in (2), which totals $184 million. Third quarter net income and earnings per share amounts exclude the after-tax impact of the Supply Chain & Freight restructuring charge described in (2), which totals $31 million. Fourth quarter net income and earnings per share amounts exclude the mark-to-market loss, described in (1), which totals $10 million, and the after-tax impact of the pension withdrawal charge described in (1), which totals $3.772 billion. Adjusted diluted earnings per share for the fourth quarter was calculated based on weighted-average shares outstanding of 1.054 billion.

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