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

Annual report pursuant to Section 13 and 15(d)

SHAREOWNERS' EQUITY (Tables)

SHAREOWNERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2024

The following is a rollforward of our common stock, additional paid-in capital, retained earnings and non-controlling minority interests accounts for the years ended December 31, 2024, 2023 and 2022 (in millions, except per share amounts):


	2024			2023			2022
	Shares	Dollars		Shares	Dollars		Shares	Dollars
Class A Common Stock:
Balance at beginning of year	127	$	2	134	$	2	138	$	2
Stock award plans	2	—		5	—		5	—
Common stock issuances	3	—		2	—		3	—
Conversions of class A to class B common stock	(11)	—		(14)	—		(12)	—
Class A shares issued at end of year	121	$	2	127	$	2	134	$	2
Class B Common Stock:
Balance at beginning of year	726	$	7	725	$	7	732	$	7
Common stock purchases	(4)	—		(13)	—		(19)	—
Conversions of class A to class B common stock	11	—		14	—		12	—
Class B shares issued at end of year	733	$	7	726	$	7	725	$	7
Additional Paid-In Capital:
Balance at beginning of year		$	—		$	—		$	1,343
Stock award plans		(77)			425			624
Common stock purchases		(212)			(882)			(2,462)
Common stock issuances		425			467			495
Other (1)		—			(10)			—
Balance at end of year		$	136		$	—		$	—
Retained Earnings:
Balance at beginning of year		$	21,055		$	21,326		$	16,179
Net income attributable to controlling interests		5,782			6,708			11,548
Dividends ($6.52, $6.48 and $6.08 per share) (2)		(5,594)			(5,611)			(5,363)
Common stock purchases		(288)			(1,368)			(1,038)
Other (3)		(73)			—			—
Balance at end of year		$	20,882		$	21,055		$	21,326
Non-Controlling Interests:
Balance at beginning of year		$	8		$	17		$	16
Change in non-controlling interests		17			(9)			1
Balance at end of year		$	25		$	8		$	17

(1) Includes a 1% excise tax applicable to share repurchases.

(2) The dividend per share amount is the same for both class A and class B common stock. Dividends include $195, $239 and $249 million for 2024, 2023 and 2022, respectively, that were settled in shares of class A common stock.

(3) Includes adjustments related to certain stock-based awards.

Schedule of Accumulated Other Comprehensive Income (Loss)

The activity in accumulated other comprehensive income (loss) for the years ended December 31, 2024, 2023 and 2022 is as follows (in millions):


	2024		2023		2022
Foreign Currency Translation Gain (Loss), Net of Tax:
Balance at beginning of year	$	(1,248)	$	(1,446)	$	(1,162)
Translation adjustment (net of tax effect of $(7), $(15) and $(17))	(338)		190		(315)
Reclassification to earnings (net of tax effect of $0, $0 and $2)	—		8		31
Balance at end of year	$	(1,586)	$	(1,248)	$	(1,446)
Unrealized Gain (Loss) on Marketable Securities, Net of Tax:
Balance at beginning of year	$	(2)	$	(11)	$	(1)
Current period changes in fair value (net of tax effect of $0, $2 and $(3))	1		7		(12)
Reclassification to earnings (net of tax effect of $0, $1 and $1)	—		2		2
Balance at end of year	$	(1)	$	(2)	$	(11)
Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax:
Balance at beginning of year	$	(76)	$	167	$	(17)
Current period changes in fair value (net of tax effect of $93, $(28) and $128)	296		(89)		407
Reclassification to earnings (net of tax effect of $(41), $(48) and $(70))	(129)		(154)		(223)
Balance at end of year	$	91	$	(76)	$	167
Unrecognized Pension and Postretirement Benefit Costs, Net of Tax:
Balance at beginning of year	$	(2,432)	$	(259)	$	(2,098)
Net actuarial gain (loss) and prior service cost resulting from remeasurements of plan assets and liabilities (net of tax effect of $(315), $(793) and $810)	(1,005)		(2,530)		2,576
Reclassification to earnings (net of tax effect of $195, $111 and $(230))	624		357		(737)
Balance at end of year	$	(2,813)	$	(2,432)	$	(259)
Accumulated other comprehensive income (loss) at end of year	$	(4,309)	$	(3,758)	$	(1,549)

Schedule of Reclassification out of Accumulated Other Comprehensive Income

Detail of the gains (losses) reclassified from accumulated other comprehensive income (loss) to the statements of consolidated income for the years ended December 31, 2024, 2023 and 2022 is as follows (in millions):


	Amount Reclassified from AOCI						Affected Line Item in the Income Statement
	2024		2023		2022
Unrealized Gain (Loss) on Foreign Currency Translation:
Realized gain (loss) on business wind-down	$	—	$	(8)	$	(33)	Other expenses
Income tax (expense) benefit	—		—		2		Income tax expense
Impact on net income	$	—	$	(8)	$	(31)	Net income
Unrealized Gain (Loss) on Marketable Securities:
Realized gain (loss) on sale of securities	$	—	$	(3)	$	(3)	Investment income (expense) and other
Income tax (expense) benefit	—		1		1		Income tax expense
Impact on net income	$	—	$	(2)	$	(2)	Net income
Unrealized Gain (Loss) on Cash Flow Hedges:
Interest rate contracts	$	(5)	$	(10)	$	(10)	Interest expense
Foreign currency exchange contracts	176		213		304		Revenue
Foreign currency exchange contracts	(1)		(1)		(1)		Investment income (expense) and other
Income tax (expense) benefit	(41)		(48)		(70)		Income tax expense
Impact on net income	$	129	$	154	$	223	Net income
Unrecognized Pension and Postretirement Benefit Costs:
Prior service costs	$	(154)	$	(109)	$	(94)	Investment income (expense) and other


Remeasurement of benefit obligation	(665)		(351)		1,027		Investment income (expense) and other
Curtailments and settlements of benefit obligations	—		(8)		34		Investment income (expense) and other
Income tax (expense) benefit	195		111		(230)		Income tax expense
Impact on net income	$	(624)	$	(357)	$	737	Net income
Total amount reclassified for the year	$	(495)	$	(213)	$	927	Net income

Activity in Deferred Compensation Program

Activity in the deferred compensation program for the years ended December 31, 2024, 2023 and 2022 was as follows (in millions):


	2024			2023			2022
	Shares	Dollars		Shares	Dollars		Shares	Dollars
Deferred Compensation Obligations:
Balance at beginning of year		$	9		$	13		$	16
Reinvested dividends		1			—			2
Benefit payments		(3)			(4)			(5)
Balance at end of year		$	7		$	9		$	13
Treasury Stock:
Balance at beginning of year	—	$	(9)	—	$	(13)	—	$	(16)
Reinvested dividends	—	(1)		—	—		—	(2)
Benefit payments	—	3		—	4		—	5
Balance at end of year	—	$	(7)	—	$	(9)	—	$	(13)