Annual report pursuant to Section 13 and 15(d)

QUARTERLY INFORMATION (unaudited)

v2.4.1.9
QUARTERLY INFORMATION (unaudited)
 12 Months Ended
Dec. 31, 2014
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
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Domestic Package
$
8,488

 
$
8,271

 
$
8,668

 
$
8,241

 
$
8,691

 
$
8,254

 
$
10,004

 
$
9,308

International Package
3,127

 
2,978

 
3,252

 
3,062

 
3,183

 
3,017

 
3,426

 
3,372

Supply Chain & Freight
2,164

 
2,185

 
2,348

 
2,204

 
2,416

 
2,250

 
2,465

 
2,296

Total revenue
13,779

 
13,434

 
14,268

 
13,507

 
14,290

 
13,521

 
15,895

 
14,976

Operating profit (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Domestic Package
927

 
1,085

 
209

 
1,132

 
1,279

 
1,186

 
444

 
1,200

International Package
438

 
352

 
444

 
451

 
460

 
417

 
335

 
537

Supply Chain & Freight
148

 
143

 
94

 
159

 
215

 
201

 
(25
)
 
171

Total operating profit
1,513

 
1,580

 
747

 
1,742

 
1,954

 
1,804

 
754

 
1,908

Net income
$
911

 
$
1,037

 
$
454

 
$
1,071

 
$
1,214

 
$
1,097

 
$
453

 
$
1,167

Net income per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.99

 
$
1.09

 
$
0.49

 
$
1.14

 
$
1.33

 
$
1.17

 
$
0.50

 
$
1.26

Diluted
$
0.98

 
$
1.08

 
$
0.49

 
$
1.13

 
$
1.32

 
$
1.16

 
$
0.49

 
$
1.25


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.
Operating profit for the quarter ended March 31, 2013 was impacted by two items: (1) The termination fee and transaction-related expenses for our proposed acquisition of TNT Express, and (2) The foreign currency gain realized upon the liquidation of a subsidiary that would have been used to acquire the shares of TNT Express. These two items are discussed further in note 15. The combination of these two items reduced the operating profit for the International Package segment by $39 million, increased net income by $36 million, and increased basic and diluted earnings per share by $0.04.