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

Quarterly report pursuant to Section 13 or 15(d)

RECENT ACCOUNTING PRONOUNCEMENTS (Tables)

RECENT ACCOUNTING PRONOUNCEMENTS (Tables)

9 Months Ended

Sep. 30, 2018

Accounting Changes and Error Corrections [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Impacted consolidated balance sheet line items, which reflect the adoption of the new ASUs, are as follows (in millions):



	December 31, 2017
	As previously reported		Adjustments (a)			Adjustments (b)		Adjustments (c)		As Recast
Assets:
Other current assets	$	1,133	$	170		$	—	$	—	$	1,303
Total current assets	15,548		170			—		—		15,718
Deferred income tax assets	265		1			—		—		266
Total Assets	$	45,403	$	171		$	—	$	—	$	45,574
Liabilities:
Accounts payable	$	3,872	$	62		$	—	$	—	$	3,934
Accrued wages and withholdings	2,521		87			—		—		2,608
Other current liabilities⁽¹⁾	905		29			—		—		934
Total current liabilities	12,708		178			—		—		12,886
Deferred income tax liabilities	757		(1		)	—		—		756
Shareowners' Equity:
Retained earnings	5,858		(6		)	—		—		5,852
Total Shareowners' Equity	1,030		(6		)	—		—		1,024
Total Liabilities and Shareowners' Equity	$	45,403	$	171		$	—	$	—	$	45,574

^{(1) The caption "Other current liabilities" was presented separately from "Hedge margin liabilities" of}^{$17 million}^{in the Form 10-K at December 31, 2017. These captions have been collapsed in the consolidated balance sheets as of September 30, 2018 and December 31, 2017 included within this Form 10-Q.}

^{(a) Recast to reflect the adoption of}^{Revenue from Contracts with Customers.}

^{(b) Recast to reflect the adoption of}^{Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.}

^{(c) Recast to reflect the adoption of}^{Restricted Cash.}

The unaudited consolidated statement of operations, which reflects the adoption of the new ASUs, is as follows (in millions):



	Three months ended September 30, 2017
	As Previously Reported			Adjustments (a)			Adjustments (b)			Adjustments (c)		As Recast
Revenue	$	15,978		$	195		$	—		$	—	$	16,173
Operating Expenses:
Compensation and benefits	8,221			—			216			—		8,437
Repairs and maintenance	398			1			—			—		399
Depreciation and amortization	572			—			—			—		572
Purchased transportation	2,652			180			—			—		2,832
Fuel	636			—			—			—		636
Other occupancy	282			—			—			—		282
Other expenses	1,182			21			—			—		1,203
Total Operating Expenses	13,943			202			216			—		14,361
Operating Profit	2,035			(7		)	(216		)	—		1,812
Other Income and (Expense):
Investment income and other	20			—			216			—		236
Interest expense	(111		)	—			—			—		(111		)
Total Other Income and (Expense)	(91		)	—			216			—		125
Income Before Income Taxes	1,944			(7		)	—			—		1,937
Income Tax Expense (Benefit)	680			(2		)	—			—		678
Net Income	$	1,264		$	(5	)	$	—		$	—	$	1,259
Basic Earnings Per Share	$	1.45		$	—		$	—		$	—	$	1.45
Diluted Earnings Per Share	$	1.45		$	(0.01	)	$	—		$	—	$	1.44

^{(a) Recast to reflect the adoption of}^{Revenue from Contracts with Customers.}

^{(b) Recast to reflect the adoption of}^{Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.}

^{(c) Recast to reflect the adoption of}^{Restricted Cash.}



	Nine months ended September 30, 2017
	As Previously Reported			Adjustments (a)		Adjustments (b)			Adjustments (c)		As Recast
Revenue	$	47,043		$	567	$	—		$	—	$	47,610
Operating Expenses:
Compensation and benefits	24,457			—		575			—		25,032
Repairs and maintenance	1,180			1		—			—		1,181
Depreciation and amortization	1,688			—		—			—		1,688
Purchased transportation	7,461			530		—			—		7,991
Fuel	1,873			—		—			—		1,873
Other occupancy	845			—		—			—		845
Other expenses	3,504			30		—			—		3,534
Total Operating Expenses	41,008			561		575			—		42,144
Operating Profit	6,035			6		(575		)	—		5,466
Other Income and (Expense):
Investment income and other	49			—		575			—		624
Interest expense	(324		)	—		—			—		(324		)
Total Other Income and (Expense)	(275		)	—		575			—		300
Income Before Income Taxes	5,760			6		—			—		5,766
Income Tax Expense (Benefit)	1,954			3		—			—		1,957
Net Income	$	3,806		$	3	$	—		$	—	$	3,809
Basic Earnings Per Share	$	4.36		$	0.01	$	—		$	—	$	4.37
Diluted Earnings Per Share	$	4.35		$	—	$	—		$	—	$	4.35

^{(a) Recast to reflect the adoption of}^{Revenue from Contracts with Customers.}

^{(b) Recast to reflect the adoption of}^{Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.}

^{(c) Recast to reflect the adoption of}^{Restricted Cash.}

The unaudited impacted consolidated statement of cash flows line items, which reflect the adoption of the new ASUs, are as follows (in millions):



	Nine Months Ended September 30, 2017
	As Previously Reported			Adjustments (a)			Adjustments (b)		Adjustments (c)		As Recast
Net Income	$	3,806		$	3		$	—	$	—	$	3,809
Adjustments to reconcile net income to net cash from operating activities:
Deferred tax (benefit) expense	295			3			—		—		298
Other assets	185			(34		)	—		—		151
Accounts payable	(411		)	13			—		—		(398		)
Accrued wages and withholdings	117			17			—		—		134
Other liabilities	(580		)	(2		)	—		—		(582		)
Cash flows from operating activities	4,418			—			—		—		4,418
Purchase of marketable securities	(1,468		)	—			—		3		(1,465		)
Net cash used in investing activities	(3,618		)	—			—		3		(3,615		)
Net decrease in cash, cash equivalents and restricted cash	(58		)	—			—		3		(55		)
Cash, cash equivalents and restricted cash at the beginning of period	3,476			—			—		445		3,921
Cash, cash equivalents and restricted cash at the end of period	$	3,418		$	—		$	—	$	448	$	3,866

^{(a) Recast to reflect the adoption of}^{Revenue from Contracts with Customers.}

^{(b) Recast to reflect the adoption of}^{Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.}

^{(c) Recast to reflect the adoption of}Restricted Cash