Annual report pursuant to Section 13 and 15(d)

QUARTERLY INFORMATION (unaudited)

v3.3.1.900
QUARTERLY INFORMATION (unaudited)
 12 Months Ended
Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]  
QUARTERLY INFORMATION (unaudited)
QUARTERLY INFORMATION (UNAUDITED)
Our revenue, segment operating profit, net income, basic and diluted earnings per share on a quarterly basis are presented below (in millions, except per share amounts):
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Domestic Package
$
8,814

 
$
8,488

 
$
8,808

 
$
8,668

 
$
8,860

 
$
8,691

 
$
10,265

 
$
10,004

International Package
2,970

 
3,127

 
3,045

 
3,252

 
2,959

 
3,183

 
3,175

 
3,426

Supply Chain & Freight
2,193

 
2,164

 
2,242

 
2,348

 
2,418

 
2,416

 
2,614

 
2,465

Total revenue
13,977

 
13,779

 
14,095

 
14,268

 
14,237

 
14,290

 
16,054

 
15,895

Operating Profit (Loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Domestic Package
1,024

 
927

 
1,201

 
209

 
1,258

 
1,279

 
1,284

 
444

International Package
498

 
438

 
552

 
444

 
507

 
460

 
580

 
335

Supply Chain & Freight
151

 
148

 
207

 
94

 
219

 
215

 
187

 
(25
)
Total operating profit
1,673

 
1,513

 
1,960

 
747

 
1,984

 
1,954

 
2,051

 
754

Net Income
$
1,026

 
$
911

 
$
1,230

 
$
454

 
$
1,257

 
$
1,214

 
$
1,331

 
$
453

Net Income Per Share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
1.13

 
$
0.99

 
$
1.37

 
$
0.49

 
$
1.40

 
$
1.33

 
$
1.49

 
$
0.50

Diluted
$
1.12

 
$
0.98

 
$
1.35

 
$
0.49

 
$
1.39

 
$
1.32

 
$
1.48

 
$
0.49


Operating profit for the quarter ended December 31, 2015 was impacted by mark-to-market loss of $118 million on our pension and postretirement benefit plans related to the remeasurement of plan assets and liabilities recognized outside of a 10% corridor (allocated as follows—U.S. Domestic Package $62 million, International Package $44 million and Supply Chain & Freight $12 million). This loss reduced fourth quarter net income by $79 million, and basic and diluted earnings per share by $0.09.
Operating profit for the quarter ended December 31, 2014 was impacted by two items, as follows:
•
A mark-to-market loss of $1.062 billion on our pension and postretirement benefit plans related to the remeasurement of plan assets and liabilities recognized outside of a 10% corridor (allocated as follows—U.S. Domestic Package $660 million, International Package $200 million, Supply Chain & Freight $202 million). This loss reduced net income by $670 million, and basic and diluted earnings per share by $0.74.
•
A pre-tax charge of $36 million associated with the remeasurement and settlement of postretirement health and welfare benefit obligations for certain employees covered by collective bargaining agreements (allocated as follows—U.S. Domestic Package $33 million, International Package $1 million, Supply Chain & Freight $2 million). This charge reduced net income by $22 million, and basic and diluted earnings per share by $0.02.
Operating profit for the quarter ended June 30, 2014 was impacted by a pre-tax charge of $1.066 billion associated with curtailment, remeasurement and settlement of postretirement health and welfare benefit obligations for certain employees covered by collective bargaining agreements (allocated as follows—U.S. Domestic Package $957 million, International Package $27 million, Supply Chain & Freight $82 million). This charge reduced net income by $665 million, and basic and diluted earnings per share by $0.73 and $0.72, respectively.
The curtailment, remeasurement and settlement charges described above that impacted the quarters ended June 30, 2014 and December 31, 2014 are discussed further in note 5.