United Parcel Service, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

RECENT ACCOUNTING PRONOUNCEMENTS (Tables)

RECENT ACCOUNTING PRONOUNCEMENTS (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Changes and Error Corrections [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Impacted consolidated balance sheet line items, which reflect the adoption of the new ASUs, are as follows (in millions):



	December 31, 2017
	As previously reported		Adjustments (a)			Adjustments (b)		Adjustments (c)		As Recast
Assets:
Other current assets	$	1,133	$	170		$	—	$	—	$	1,303
Total current assets	15,548		170			—		—		15,718
Deferred income tax assets	265		1			—		—		266
Total Assets	$	45,403	$	171		$	—	$	—	$	45,574
Liabilities:
Accounts payable	$	3,872	$	62		$	—	$	—	$	3,934
Accrued wages and withholdings	2,521		87			—		—		2,608
Other current liabilities⁽¹⁾	905		29			—		—		934
Total current liabilities	12,708		178			—		—		12,886
Deferred income tax liabilities	757		(1		)	—		—		756
Shareowners' Equity:
Retained earnings	5,858		(6		)	—		—		5,852
Total Shareowners' Equity	1,030		(6		)	—		—		1,024
Total Liabilities and Shareowners' Equity	$	45,403	$	171		$	—	$	—	$	45,574

^{(1) The caption "Other current liabilities" was presented separately from "Hedge margin liabilities" of}^{$17 million}^{in the Form 10-K at December 31, 2017. These captions have been collapsed in the consolidated balance sheets as of June 30, 2018 and December 31, 2017 included within this Form 10-Q.}

^{(a) Recast to reflect the adoption of}^{Revenue from Contracts with Customers.}

^{(b) Recast to reflect the adoption of}^{Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.}

^{(c) Recast to reflect the adoption of}^{Restricted Cash.}

The unaudited consolidated statement of operations, which reflects the adoption of the new ASUs, is as follows (in millions):



	Three months ended June 30, 2017
	As previously reported			Adjustments (a)		Adjustments (b)			Adjustments (c)		As Recast
Revenue	$	15,750		$	177	$	—		$	—	$	15,927
Operating Expenses:
Compensation and benefits	8,105			—		179			—		8,284
Repairs and maintenance	392			—		—			—		392
Depreciation and amortization	562			—		—			—		562
Purchased transportation	2,443			171		—			—		2,614
Fuel	616			—		—			—		616
Other occupancy	264			—		—			—		264
Other expenses	1,152			6		—			—		1,158
Total Operating Expenses	13,534			177		179			—		13,890
Operating Profit	2,216			—		(179		)	—		2,037
Other Income and (Expense):
Investment income and other	14			—		179			—		193
Interest expense	(111		)	—		—			—		(111		)
Total Other Income and (Expense)	(97		)	—		179			—		82
Income Before Income Taxes	2,119			—		—			—		2,119
Income Tax Expense	735			—		—			—		735
Net Income	$	1,384		$	—	$	—		$	—	$	1,384
Basic earnings per share	$	1.59		$	—	$	—		$	—	$	1.59
Diluted earnings per share	$	1.58		$	—	$	—		$	—	$	1.58

^{(a) Recast to reflect the adoption of}^{Revenue from Contracts with Customers.}

^{(b) Recast to reflect the adoption of}^{Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.}

^{(c) Recast to reflect the adoption of}^{Restricted Cash.}



	Six months ended June 30, 2017
	As previously reported			Adjustments (a)		Adjustments (b)			Adjustments (c)		As Recast
Revenue	$	31,065		$	372	$	—		$	—	$	31,437
Operating Expenses:
Compensation and benefits	16,236			—		359			—		16,595
Repairs and maintenance	782			—		—			—		782
Depreciation and amortization	1,116			—		—			—		1,116
Purchased transportation	4,809			350		—			—		5,159
Fuel	1,237			—		—			—		1,237
Other occupancy	563			—		—			—		563
Other expenses	2,322			9		—			—		2,331
Total Operating Expenses	27,065			359		359			—		27,783
Operating Profit	4,000			13		(359		)	—		3,654
Other Income and (Expense):
Investment income and other	29			—		359			—		388
Interest expense	(213		)	—		—			—		(213		)
Total Other Income and (Expense)	(184		)	—		359			—		175
Income Before Income Taxes	3,816			13		—			—		3,829
Income Tax Expense	1,274			5		—			—		1,279
Net Income	$	2,542		$	8	$	—		$	—	$	2,550
Basic earnings per share	$	2.91		$	0.01	$	—		$	—	$	2.92
Diluted earnings per share	$	2.90		$	0.01	$	—		$	—	$	2.91

^{(a) Recast to reflect the adoption of}^{Revenue from Contracts with Customers.}

^{(b) Recast to reflect the adoption of}^{Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.}

^{(c) Recast to reflect the adoption of}^{Restricted Cash.}

The unaudited impacted consolidated statement of cash flows line items, which reflect the adoption of the new ASUs, are as follows (in millions):



	Six months ended June 30, 2017
	As previously reported			Adjustments (a)			Adjustments (b)		Adjustments (c)		As Recast
Net Income	$	2,542		$	8		$	—	$	—	$	2,550
Adjustments to reconcile net income to net cash from operating activities:
Deferred tax (benefit) expense	175			5			—		—		180
Other assets	440			(20		)	—		—		420
Accounts payable	(534		)	4			—		—		(530		)
Accrued wages and withholdings	(18		)	5			—		—		(13		)
Other liabilities	(456		)	(2		)	—		—		(458		)
Cash flows from operating activities	2,621			—			—		—		2,621
Purchase of marketable securities	(1,084		)	—			—		2		(1,082		)
Net cash used in investing activities	(2,027		)	—			—		2		(2,025		)
Net decrease in cash, cash equivalents and restricted cash	68			—			—		2		70
Cash, cash equivalents and restricted cash at the beginning of period	3,476			—			—		445		3,921
Cash, cash equivalents and restricted cash at the end of period	$	3,544		$	—		$	—	$	447	$	3,991

^{(a) Recast to reflect the adoption of}^{Revenue from Contracts with Customers.}

^{(b) Recast to reflect the adoption of}^{Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.}

^{(c) Recast to reflect the adoption of}^{Restricted Cash}