MULTIEMPLOYER EMPLOYEE BENEFIT PLANS

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MULTIEMPLOYER EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2013
Multiemployer Plans [Abstract]
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS	MULTIEMPLOYER EMPLOYEE BENEFIT PLANS We contribute to a number of multiemployer defined benefit plans under the terms of collective bargaining agreements that cover our union-represented employees. These plans generally provide for retirement, death and/or termination benefits for eligible employees within the applicable collective bargaining units, based on specific eligibility/participation requirements, vesting periods and benefit formulas. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: • Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the multiemployer plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If we choose to stop participating in some of our multiemployer plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. However, cessation of participation in a multiemployer plan and subsequent payment of any withdrawal liability is subject to the collective bargaining process. The discussion that follows sets forth the financial impact on our results of operations and cash flows for the years ended December 31, 2013, 2012 and 2011 from our participation in multiemployer benefit plans. Several factors could cause us to make significantly higher future contributions to these plans, including unfavorable investment performance, changes in demographics and increased benefits to participants. However, all surcharges are subject to the collective bargaining process. At this time, we are unable to determine the amount of additional future contributions, if any, or whether any material adverse effect on our financial condition, results of operations or liquidity would result from our participation in these plans. The number of employees covered by our multiemployer plans has remained consistent over the past three years, and there have been no significant changes that affect the comparability of 2013, 2012 and 2011 contributions. We recognize expense for the contractually-required contribution for each period, and we recognize a liability for any contributions due and unpaid at the end of a reporting period. Multiemployer Pension Plans The following table outlines our participation in multiemployer pension plans for the periods ended December 31, 2013, 2012 and 2011, and sets forth our calendar year contributions into each plan. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number. The most recent Pension Protection Act zone status available in 2013 and 2012 relates to the plans’ two most recent fiscal year-ends. The zone status is based on information that we received from the plans’ administrators and is certified by each plan’s actuary. Among other factors, plans certified in the red zone are generally less than 65% funded, plans certified in the orange zone are both less than 80% funded and have an accumulated funding deficiency or are expected to have a deficiency in any of the next six plan years, plans certified in the yellow zone are less than 80% funded, and plans certified in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates whether a financial improvement plan (“FIP”) for yellow/orange zone plans, or a rehabilitation plan (“RP”) for red zone plans, is either pending or has been implemented. As of December 31, 2013, all plans that have either a FIP or RP requirement have had the respective FIP or RP implemented. Our collectively-bargained contributions satisfy the requirements of all implemented FIPs and RPs and do not currently require the payment of any surcharges. In addition, minimum contributions outside of the agreed upon contractual rate are not required. For the plans detailed in the following table, the expiration date of the associated collective bargaining agreements was July 31, 2013 (see Note 16), with the exception of the Automotive Industries Pension Plan and the IAM National Pension Fund / National Pension Plan which both have a July 31, 2014 expiration date. For those plans covered by the collective bargaining agreement that expired on July 31, 2013, we have accrued a liability for the estimated contributions (which are included in the following table) under our new collective bargaining agreement that has been approved, but not yet ratified (see note 16). For all plans detailed in the following table, we provided more than 5% of the total plan contributions from all employers for 2013, 2012 and 2011 (as disclosed in the Form 5500 for each respective plan). Certain plans have been aggregated in the “All Other Multiemployer Pension Plans” line in the following table, as the contributions to each of these individual plans are not material.   EIN / Pension Plan   Pension Protection Act Zone Status   FIP/RP Status Pending/   (in millions) UPS Contributions and Accruals   Surcharge Pension Fund Number   2013   2012   Implemented   2013   2012   2011   Imposed Alaska Teamster-Employer Pension Plan 92-6003463-024   Red   Red   Yes/Implemented   $ 5   $ 4   $ 4   No Automotive Industries Pension Plan 94-1133245-001   Red   Red   Yes/Implemented   4   4   4   No Central Pennsylvania Teamsters Defined Benefit Plan 23-6262789-001   Green   Yellow   Yes/Implemented   30   29   27   No Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund 55-6021850-001   Green   Green   No   9   9   8   No Hagerstown Motor Carriers and Teamsters Pension Fund 52-6045424-001   Red   Red   Yes/Implemented   5   5   5   No I.A.M. National Pension Fund / National Pension Plan 51-6031295-002   Green   Green   No   27   24   25   No International Brotherhood of Teamsters Union Local No. 710 Pension Fund 36-2377656-001   Green   Green   No   88   75   74   No Local 705, International Brotherhood of Teamsters Pension Plan 36-6492502-001   Red   Red   Yes/Implemented   68   46   58   No Local 804 I.B.T. & Local 447 I.A.M.—UPS Multiemployer Retirement Plan 51-6117726-001   Red   Red   Yes/Implemented   88   87   84   No Milwaukee Drivers Pension Trust Fund 39-6045229-001   Green   Green   No   29   26   26   No New England Teamsters & Trucking Industry Pension Fund 04-6372430-001   Red   Red   Yes/Implemented   102   124   124   No New York State Teamsters Conference Pension and Retirement Fund 16-6063585-074   Red   Red   Yes/Implemented   72   65   57   No Teamster Pension Fund of Philadelphia and Vicinity 23-1511735-001   Yellow   Yellow   Yes/Implemented   46   44   41   No Teamsters Joint Council No. 83 of Virginia Pension Fund 54-6097996-001   Yellow   Yellow   Yes/Implemented   49   44   41   No Teamsters Local 639—Employers Pension Trust 53-0237142-001   Green   Green   No   41   36   33   No Teamsters Negotiated Pension Plan 43-6196083-001   Yellow   Red   Yes/Implemented   26   24   22   No Truck Drivers and Helpers Local Union No. 355 Retirement Pension Plan 52-6043608-001   Yellow   Yellow   Yes/Implemented   14   14   12   No United Parcel Service, Inc.—Local 177, I.B.T. Multiemployer Retirement Plan 13-1426500-419   Red   Red   Yes/Implemented   68   62   57   No Western Conference of Teamsters Pension Plan 91-6145047-001   Green   Green   No   553   520   476   No Western Pennsylvania Teamsters and Employers Pension Fund 25-6029946-001   Red   Red   Yes/Implemented   23   24   21   No All Other Multiemployer Pension Plans                 49   59   44                   Total Contributions   $ 1,396   $ 1,325   $ 1,243     In 2012, we reached an agreement with the New England Teamsters and Trucking Industry Pension Fund ("NETTI Fund"), a multiemployer pension plan in which UPS is a participant, to restructure the pension liabilities for approximately 10,200 UPS employees represented by the Teamsters. The agreement reflected a decision by the NETTI Fund's trustees to restructure the NETTI Fund through plan amendments to utilize a "two pool approach", which effectively subdivided the plan assets and liabilities between two groups of beneficiaries. As part of this agreement, UPS agreed to withdraw from the original pool of the NETTI Fund, of which it had historically been a participant, and reenter the NETTI Fund's newly-established pool as a new employer. Upon ratification of the agreement by the Teamsters in September 2012, we withdrew from the original pool of the NETTI Fund and incurred an undiscounted withdrawal liability of $2.162 billion to be paid in equal monthly installments over 50 years. The undiscounted withdrawal liability was calculated by independent actuaries employed by the NETTI Fund, in accordance with the governing plan documents and the applicable requirements of the Employee Retirement Income Security Act of 1974. In 2012, we recorded a charge to expense to establish an $896 million withdrawal liability on our consolidated balance sheet, which represents the present value of the $2.162 billion future payment obligation discounted at a 4.25% interest rate. This discount rate represents the estimated credit-adjusted market rate of interest at which we could obtain financing of a similar maturity and seniority. As this agreement is not a contribution to the plan, the amounts reflected in the previous table do not include this $896 million non-cash transaction. The $896 million charge to expense recorded in 2012 is included in "compensation and benefits" expense in the statements of consolidated income, while the corresponding withdrawal liability is included in "other non-current liabilities" on the consolidated balance sheet. We impute interest on the withdrawal liability using the 4.25% discount rate, while the monthly payments made to the NETTI Fund reduce the remaining balance of the withdrawal liability. Our status in the newly-established pool of the NETTI Fund is accounted for as the participation in a new multiemployer pension plan, and therefore we recognize expense based on the contractually-required contribution for each period, and we recognize a liability for any contributions due and unpaid at the end of a reporting period. Based on the borrowing rates currently available to the Company for long-term financing of a similar maturity, the fair value of the NETTI withdrawal liability as of December 31, 2013 was $783 million. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of this liability. Multiemployer Health and Welfare Plans We also contribute to several multiemployer health and welfare plans that cover both active and retired employees. Health care benefits are provided to participants who meet certain eligibility requirements as covered under the applicable collective bargaining unit. The following table sets forth our calendar year plan contributions and accruals. For those plans covered by the collective bargaining agreement that expired on July 31, 2013, we have accrued a liability for the estimated contributions (which are included in the following table) under our new collective bargaining agreement that has been approved, but not yet ratified (see note 16). Certain plans have been aggregated in the “All Other Multiemployer Health and Welfare Plans” line in the table, as the contributions to each of these individual plans are not material.   (in millions) UPS Contributions and Accruals Health and Welfare Fund 2013   2012   2011 Bay Area Delivery Drivers $ 29   $ 28   $ 27 Central Pennsylvania Teamsters Health & Pension Fund 20   19   18 Central States, South East & South West Areas Health and Welfare Fund 505   471   452 Delta Health Systems—East Bay Drayage Drivers 24   24   17 Employer—Teamster Local Nos. 175 & 505 9   8   8 Joint Council #83 Health & Welfare Fund 24   25   25 Local 191 Teamsters Health Fund 9   9   9 Local 401 Teamsters Health & Welfare Fund 6   6   6 Local 804 Welfare Trust Fund 67   62   58 Milwaukee Drivers Pension Trust Fund—Milwaukee Drivers Health and Welfare Trust Fund 31   29   28 Montana Teamster Employers Trust 6   6   6 New York State Teamsters Health & Hospital Fund 46   44   41 North Coast Benefit Trust 8   7   7 Northern California General Teamsters (DELTA) 84   75   73 Northern New England Benefit Trust 35   33   32 Oregon / Teamster Employers Trust 28   27   27 Teamsters 170 Health & Welfare Fund 12   12   12 Teamsters Benefit Trust 38   32   29 Teamsters Local 251 Health & Insurance Plan 11   10   10 Teamsters Local 404 Health & Insurance Plan 6   6   6 Teamsters Local 638 Health Fund 32   29   28 Teamsters Local 639—Employers Health & Pension Trust Funds 24   22   22 Teamsters Local 671 Health Services & Insurance Plan 13   12   13 Teamsters Union 25 Health Services & Insurance Plan 37   36   34 Teamsters Union Local 677 Health Services & Insurance Plan 8   8   8 Truck Drivers and Helpers Local 355 Baltimore Area Health & Welfare Fund 13   13   12 Utah-Idaho Teamsters Security Fund 18   16   15 Washington Teamsters Welfare Trust 35   32   30 All Other Multiemployer Health and Welfare Plans 44   55   50 Total Contributions $ 1,222   $ 1,156   $ 1,103