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

Quarterly report pursuant to Section 13 or 15(d)

SHAREOWNERS' EQUITY (Tables)

SHAREOWNERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2020

Accumulated Other Comprehensive Income (Loss) [Line Items]

Schedule of Stockholders Equity [Table Text Block]


Three Months Ended June 30:	2020				2019
	Shares	Dollars		Shares	Dollars
Class A Common Stock
Balance at beginning of period	158	$	2	164	$	2
Common stock purchases	—	—		(1)	—
Stock award plans	2	—		1	—
Common stock issuances	—	—		(1)	—
Conversions of class A to class B common stock	(3)	—		(2)	—
Class A shares issued at end of period	157	$	2	161	$	2
Class B Common Stock
Balance at beginning of period	703	$	7	697	$	7
Common stock purchases	—	—		(1)	—
Conversions of class A to class B common stock	3	—		2	—
Class B shares issued at end of period	706	7		698	7
Additional Paid-In Capital
Balance at beginning of period		$	29		$	27
Common stock purchases		—			(251)
Stock award plans		137			213
Common stock issuances		89			107
Option premiums paid		—			6

Balance at end of period		$	255		$	102
Retained Earnings
Balance at beginning of period		$	9,137		8,249
Net income attributable to common shareowners		1,768			1,685
Dividends ($1.01 and $0.96 per share) ⁽¹⁾		(873)			(826)


Other		—			1
Balance at end of period		$	10,032		$	9,109
Non-Controlling Minority Interest
Balance at beginning of period		$	14		$	18
Change in non-controlling minority interest		(1)			—
Balance at end of period		$	13		$	18
⁽¹⁾The dividend per share amount is the same for both class A and class B common stock. Dividends include $30 and $26 million as of June 30, 2020 and June 30, 2019 respectively, that were settled in shares of class A common stock.


Six Months Ended June 30:	2020				2019
	Shares	Dollars		Shares	Dollars
Class A Common Stock
Balance at beginning of period	156	2		163	$	2
Common stock purchases	—	—		(2)	—
Stock award plans	6	—		4	—
Common stock issuances	2	—		1	—
Conversions of class A to class B common stock	(7)	—		(5)	—
Class A shares issued at end of period	157	$	2	161	$	2
Class B Common Stock
Balance at beginning of period	701	$	7	696	$	7
Common stock purchases	(2)	—		(3)	—
Conversions of class A to class B common stock	7	—		5	—
Class B shares issued at end of period	706	7		698	7
Additional Paid-In Capital
Balance at beginning of period		150			$	—
Common stock purchases		(217)			(502)
Stock award plans		70			382
Common stock issuances		252			221
Option premiums received (paid)		—			1

Balance at end of period		$	255		$	102
Retained Earnings
Balance at beginning of period		9,105			$	8,006
Net income attributable to common shareowners		2,733			2,796
Dividends ($2.02 and $1.92 per share) ⁽¹⁾		(1,806)			(1,693)



Balance at end of period		$	10,032		$	9,109
Non-Controlling Minority Interest
Balance at beginning of period		$	16		$	16
Change in non-controlling minority interest		(3)			2
Balance at end of period		$	13		$	18
⁽¹⁾ The dividend per share amount is the same for both class A and class B common stock. Dividends include $123 and $94 million as of June 30, 2020 and June 30, 2019 respectively, that were settled in shares of class A common stock.

Schedule of Deferred Compensation and Treasury Stock Activity [Table Text Block]

Activity in the deferred compensation program for the three and six months ended June 30, 2020 and 2019 is as follows (in millions):


	2020				2019
Three Months Ended June 30:	Shares	Dollars		Shares	Dollars
Deferred Compensation Obligations:
Balance at beginning of period		$	19		$	25
Reinvested dividends		1			—
Benefit payments		—			—
Balance at end of period		$	20		$	25
Treasury Stock:
Balance at beginning of period	—	$	(19)	(1)	$	(25)
Reinvested dividends	—	(1)		—	—
Benefit payments	—	—		1	—
Balance at end of period	—	(20)		—	(25)


	2020				2019
Six Months Ended June 30:	Shares	Dollars		Shares	Dollars
Deferred Compensation Obligations:
Balance at beginning of period		$	26		$	32
Reinvested dividends		1			1
Benefit payments		(7)			(8)
Balance at end of period		$	20		$	25
Treasury Stock:
Balance at beginning of period	—	$	(26)	(1)	$	(32)
Reinvested dividends	—	(1)		—	(1)
Benefit payments	—	7		1	8
Balance at end of period	—	(20)		—	(25)

Schedule of Accumulated Other Comprehensive Income (Loss)

The activity in AOCI for the three and six months ended June 30, 2020 and 2019 is as follows (in millions):


Three Months Ended June 30:	2020		2019
Foreign currency translation gain (loss), net of tax:
Balance at beginning of period	$	(1,219)	$	(1,073)

Translation adjustment (net of tax effect of $(14) and $(7))	10		(33)

Balance at end of period	(1,209)		(1,106)
Unrealized gain (loss) on marketable securities, net of tax:
Balance at beginning of period	6		2
Current period changes in fair value (net of tax effect of $1 and $3)	5		5

Reclassification to earnings (net of tax effect of $(1) and $0)	(2)		—
Balance at end of period	9		7
Unrealized gain (loss) on cash flow hedges, net of tax:
Balance at beginning of period	329		116
Current period changes in fair value (net of tax effect of $(20) and $5)	(62)		15

Reclassification to earnings (net of tax effect of $(16) and $(9))	(52)		(27)
Balance at end of period	215		104
Unrecognized pension and postretirement benefit costs, net of tax:
Balance at beginning of period	(4,992)		(3,863)

Reclassification to earnings (net of tax effect of $13 and $14)	44		43


Balance at end of period	(4,948)		(3,820)
Accumulated other comprehensive income (loss) at end of period	$	(5,933)	$	(4,815)


Six Months Ended June 30:	2020		2019
Foreign currency translation gain (loss), net of tax:
Balance at beginning of period	$	(1,078)	$	(1,126)

Translation adjustment (net of tax effect of $(1) and $2)	(131)		20

Balance at end of period	(1,209)		(1,106)
Unrealized gain (loss) on marketable securities, net of tax:
Balance at beginning of period	4		(2)
Current period changes in fair value (net of tax effect of $1 and $3)	7		9

Reclassification to earnings (net of tax effect of $(1) and $0)	(2)		—
Balance at end of period	9		7
Unrealized gain (loss) on cash flow hedges, net of tax:
Balance at beginning of period	112		40
Current period changes in fair value (net of tax effect of $63 and $33)	201		104

Reclassification to earnings (net of tax effect of $(31) and $(13))	(98)		(40)
Balance at end of period	215		104
Unrecognized pension and postretirement benefit costs, net of tax:
Balance at beginning of period	(5,035)		(3,906)

Reclassification to earnings (net of tax effect of $27 and $27)	87		86


Balance at end of period	(4,948)		(3,820)
Accumulated other comprehensive income (loss) at end of period	$	(5,933)	$	(4,815)

Schedule of Reclassifications from Accumulated Other Comprehensive Income (Loss) to Earnings [Table Text Block]

Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the three and six months ended June 30, 2020 and 2019 is as follows (in millions):


	Amount Reclassified from AOCI					Affected Line Item in the Income Statement
Three Months Ended June 30:	2020		2019




Unrealized gain (loss) on marketable securities:
Realized gain (loss) on sale of securities	$	3	$	—	Investment income and other
Income tax (expense) benefit	(1)		—		Income tax expense
Impact on net income	2		—		Net income
Unrealized gain (loss) on cash flow hedges:
Interest rate contracts	(3)		(3)		Interest expense
Foreign exchange contracts	71		39		Revenue


Income tax (expense) benefit	(16)		(9)		Income tax expense
Impact on net income	52		27		Net income
Unrecognized pension and postretirement benefit costs:
Prior service costs	(57)		(57)		Investment income and other


Income tax (expense) benefit	13		14		Income tax expense
Impact on net income	(44)		(43)		Net income
Total amount reclassified for the period	$	10	$	(16)	Net income


	Amount Reclassified from AOCI					Affected Line Item in the Income Statement
Six Months Ended June 30:	2020		2019




Unrealized gain (loss) on marketable securities:
Realized gain (loss) on sale of securities	$	3	$	—	Investment income and other
Income tax (expense) benefit	(1)		—		Income tax expense
Impact on net income	2		—		Net income
Unrealized gain (loss) on cash flow hedges:
Interest rate contracts	(6)		(9)		Interest expense
Foreign exchange contracts	135		62		Revenue


Income tax (expense) benefit	(31)		(13)		Income tax expense
Impact on net income	98		40		Net income
Unrecognized pension and postretirement benefit costs:
Prior service costs	(114)		(113)		Investment income and other


Income tax (expense) benefit	27		27		Income tax expense
Impact on net income	(87)		(86)		Net income

Total amount reclassified for the period	$	13	$	(46)	Net income