United Parcel Service, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

SUMMARY OF ACCOUNTING POLICIES (Tables)

SUMMARY OF ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

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 December 31, 2018 and December 31, 2017 included within this Form 10-K.}

^{(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 statements of operations, which reflects the adoption of the new ASUs, are as follows (in millions):



	Twelve months ended December 31, 2016
	As Previously Reported			Adjustments (a)			Adjustments (b)			Adjustments (c)		As Recast
Revenue	$	60,906		$	704		$	—		$	—	$	61,610
Operating Expenses:
Compensation and benefits	34,770			—			(2,236		)	—		32,534
Repairs and maintenance	1,538			4			—			—		1,542
Depreciation and amortization	2,224			—			—			—		2,224
Purchased transportation	9,129			719			—			—		9,848
Fuel	2,118			—			—			—		2,118
Other occupancy	1,037			—			—			—		1,037
Other expenses	4,623			(4		)	—			—		4,619
Total Operating Expenses	55,439			719			(2,236		)	—		53,922
Operating Profit	5,467			(15		)	2,236			—		7,688
Other Income and (Expense):
Investment income (expense) and other	50			—			(2,236		)	—		(2,186		)
Interest expense	(381		)	—			—			—		(381		)
Total Other Income and (Expense)	(331		)	—			(2,236		)	—		(2,567		)
Income Before Income Taxes	5,136			(15		)	—			—		5,121
Income Tax Expense (Benefit)	1,705			(6		)	—			—		1,699
Net Income	$	3,431		$	(9	)	$	—		$	—	$	3,422
Basic Earnings Per Share	$	3.89		$	(0.01	)	$	—		$	—	$	3.88
Diluted Earnings Per Share	$	3.87		$	(0.01	)	$	—		$	—	$	3.86

^{(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.}



	Twelve months ended December 31, 2017
	As Previously Reported			Adjustments (a)			Adjustments (b)			Adjustments (c)		As Recast
Revenue	$	65,872		$	713		$	—		$	—	$	66,585
Operating Expenses:
Compensation and benefits	34,588			—			(11		)	—		34,577
Repairs and maintenance	1,600			1			—			—		1,601
Depreciation and amortization	2,282			—			—			—		2,282
Purchased transportation	10,989			707			—			—		11,696
Fuel	2,690			—			—			—		2,690
Other occupancy	1,155			—			—			—		1,155
Other expenses	5,039			16			—			—		5,055
Total Operating Expenses	58,343			724			(11		)	—		59,056
Operating Profit	7,529			(11		)	11			—		7,529
Other Income and (Expense):
Investment income (expense) and other	72			—			(11		)	—		61
Interest expense	(453		)	—			—			—		(453		)
Total Other Income and (Expense)	(381		)	—			(11		)	—		(392		)
Income Before Income Taxes	7,148			(11		)	—			—		7,137
Income Tax Expense (Benefit)	2,238			(6		)	—			—		2,232
Net Income	$	4,910		$	(5	)	$	—		$	—	$	4,905
Basic Earnings Per Share	$	5.64		$	(0.01	)	$	—		$	—	$	5.63
Diluted Earnings Per Share	$	5.61		$	—		$	—		$	—	$	5.61

^{(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):



	Twelve Months Ended December 31, 2016
	As Previously Reported			Adjustments (a)			Adjustments (b)		Adjustments (c)		As Recast
Net Income	$	3,431		$	(9	)	$	—	$	—	$	3,422
Adjustments to reconcile net income to net cash from operating activities:
Deferred tax (benefit) expense	123			(6		)	—		—		117
Other assets	(14		)	19			—		—		5
Accounts payable	461			(1		)	—		—		460
Accrued wages and withholdings	109			(18		)	—		—		91
Other liabilities	(561		)	15			—		—		(546		)
Cash flows from operating activities	6,473			—			—		—		6,473
Purchase of marketable securities	(4,816		)	—			—		3		(4,813		)
Net cash used in investing activities	(2,566		)	—			—		3		(2,563		)
Net decrease in cash, cash equivalents and restricted cash	746			—			—		3		749
Cash, cash equivalents and restricted cash at the beginning of period	2,730			—			—		442		3,172
Cash, cash equivalents and restricted cash at the end of period	$	3,476		$	—		$	—	$	445	$	3,921

^{(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.}



	Twelve Months Ended December 31, 2017
	As Previously Reported			Adjustments (a)			Adjustments (b)		Adjustments (c)		As Recast
Net Income	$	4,910		$	(5	)	$	—	$	—	$	4,905
Adjustments to reconcile net income to net cash from operating activities:
Deferred tax (benefit) expense	1,230			(6		)	—		—		1,224
Other assets	(982		)	(2		)	—		—		(984		)
Accounts payable	592			7			—		—		599
Accrued wages and withholdings	193			7			—		—		200
Other liabilities	(241		)	(2		)	—		—		(243		)
Other operating activities	47			1							48
Cash flows from operating activities	1,479			—			—		—		1,479
Purchase of marketable securities	(1,634		)	—			—		4		(1,630		)
Net cash used in investing activities	(4,975		)	—			—		4		(4,971		)
Net decrease in cash, cash equivalents and restricted cash	(156		)	—			—		4		(152		)
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	$	3,320		$	—		$	—	$	449	$	3,769

^{(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.}