EX-99.2 3 exhibit992-q22019financial.htm EXHIBIT 99.2 - Q2 2019 FINANCIAL STATEMENT SCHEDULES Exhibit


Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - Second Quarter
(unaudited)
 
Three Months Ended
 
 
 
June 30
 
 
2019
2018
Change
% Change
(amounts in millions, except per share data)
 
 
 
 
Statement of Income Data:
 
 
 
 
Revenue:
 
 
 
 
  U.S. Domestic Package
$
11,150

$
10,354

$
796

7.7
 %
  International Package
3,505

3,602

(97
)
(2.7
)%
  Supply Chain & Freight
3,393

3,500

(107
)
(3.1
)%
  Total revenue
18,048

17,456

592

3.4
 %
 
 
 
 
 
Operating expenses:
 
 
 
 
  Compensation and benefits
9,299

9,024

275

3.0
 %
  Other
6,606

6,659

(53
)
(0.8
)%
  Total operating expenses
15,905

15,683

222

1.4
 %
 
 
 
 
 
Operating profit:
 
 
 
 
  U.S. Domestic Package
1,208

939

269

28.6
 %
  International Package
663

618

45

7.3
 %
  Supply Chain & Freight
272

216

56

25.9
 %
  Total operating profit
2,143

1,773

370

20.9
 %
 
 
 
 
 
Other income (expense):
 
 
 
 
 Other pension income (expense)
192

284

(92
)
(32.4
)%
  Investment income and other
28

18

10

55.6
 %
  Interest expense
(159
)
(149
)
(10
)
6.7
 %
  Total other income (expense)
61

153

(92
)
(60.1
)%
 
 
 
 
 
Income before income taxes
2,204

1,926

278

14.4
 %
 
 
 
 
 
Income tax expense (benefit)
519

441

78

17.7
 %
 
 
 
 
 
Net income
$
1,685

$
1,485

$
200

13.5
 %
 
 
 
 
 
Net income as a percentage of revenue
9.3
%
8.5
%
 
 
 
 
 
 
 
Per share amounts:
 
 
 
 
  Basic earnings per share
$
1.95

$
1.71

$
0.24

14.0
 %
  Diluted earnings per share
$
1.94

$
1.71

$
0.23

13.5
 %
 
 
 
 
 
Weighted-average shares outstanding:
 
 
 
 
  Basic
865

866

(1
)
(0.1
)%
  Diluted
869

870

(1
)
(0.1
)%
 
 
 
 
 
As adjusted income data:
 
 
 
 
Operating profit:
 
 
 
 
  U.S. Domestic Package (1)
$
1,226

$
1,135

$
91

8.0
 %
  International Package (1)
665

654

11

1.7
 %
  Supply Chain & Freight (1)
273

247

26

10.5
 %
       Total operating profit (1)
2,164

2,036

128

6.3
 %
 
 
 
 
 
Income before income taxes (1)
$
2,225

$
2,189

$
36

1.6
 %
Net income (2)
$
1,702

$
1,685

$
17

1.0
 %
 
 
 
 
 
Basic earnings per share (2)
$
1.97

$
1.95

$
0.02

1.0
 %
Diluted earnings per share (2)
$
1.96

$
1.94

$
0.02

1.0
 %

(1) 2019 operating profit and consolidated income before income taxes exclude the impact of $21 million of transformation strategy costs, that reflect other employee benefits costs of $2 million and other costs of $19 million. These costs are allocated between the U.S. Domestic Package segment ($18 million), International Package segment ($2 million) and Supply Chain & Freight segment ($1 million).

2018 operating profit and consolidated income before income taxes exclude the impact of $263 million of transformation costs, which includes voluntary retirement plan severance costs of $192 million, and other costs of $71 million. These costs are allocated between the U.S. Domestic Package segment ($196 million), International Package segment ($36 million) and Supply Chain & Freight segment ($31 million).

(2) 2019 net income and earnings per share amounts exclude the after-tax impact of the adjustments described in (1), which decreased net income by $17 million.

2018 net income and earnings per share amounts exclude the after-tax impact of the adjustments described in (1), which decreased net income by $200 million.
  

Certain prior year amounts have been reclassified to conform to the current year presentation.






United Parcel Service, Inc.
Selected Operating Data - Second Quarter
(unaudited)
 
Three Months Ended
 
 
 
June 30
 
 
2019
2018
Change
% Change
 
 
 
 
 
Revenue (in millions):
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
$
2,173

$
1,830

$
343

18.7
 %
   Deferred
1,157

1,080

77

7.1
 %
   Ground
7,820

7,444

376

5.1
 %
      Total U.S. Domestic Package
11,150

10,354

796

7.7
 %
International Package:
 
 
 
 
   Domestic
690

700

(10
)
(1.4
)%
   Export
2,668

2,747

(79
)
(2.9
)%
   Cargo and Other
147

155

(8
)
(5.2
)%
      Total International Package
3,505

3,602

(97
)
(2.7
)%
Supply Chain & Freight:
 
 
 
 
   Forwarding
1,496

1,659

(163
)
(9.8
)%
Logistics
833

784

49

6.3
 %
   Freight
861

853

8

0.9
 %
   Other
203

204

(1
)
(0.5
)%
      Total Supply Chain & Freight
3,393

3,500

(107
)
(3.1
)%
Consolidated
$
18,048

$
17,456

$
592

3.4
 %
 
 
 
 
 
Consolidated volume (in millions)
1,294

1,226

68

5.5
 %
 
 
 
 
 
Operating weekdays
64

64


 %
 
 
 
 
 
Average Daily Package Volume (in thousands):
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
1,855

1,424

431

30.3
 %
   Deferred
1,380

1,226

154

12.6
 %
   Ground
13,972

13,420

552

4.1
 %
      Total U.S. Domestic Package
17,207

16,070

1,137

7.1
 %
International Package:
 
 
 
 
   Domestic
1,626

1,654

(28
)
(1.7
)%
   Export
1,387

1,424

(37
)
(2.6
)%
      Total International Package
3,013

3,078

(65
)
(2.1
)%
Consolidated
20,220

19,148

1,072

5.6
 %
 
 
 
 
 
Average Revenue Per Piece:
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
$
18.30

$
20.08

$
(1.78
)
(8.9
)%
   Deferred
13.10

13.76

(0.66
)
(4.8
)%
   Ground
8.75

8.67

0.08

0.9
 %
      Total U.S. Domestic Package
10.12

10.07

0.05

0.5
 %
International Package:
 
 
 
 
   Domestic
6.63

6.61

0.02

0.3
 %
   Export
30.06

30.14

(0.08
)
(0.3
)%
      Total International Package
17.41

17.50

(0.09
)
(0.5
)%
Consolidated
$
11.21

$
11.26

$
(0.05
)
(0.4
)%

















Certain prior year amounts have been reclassified to conform to the current year presentation.





United Parcel Service, Inc.
Supplemental Analysis of Currency and UPS Freight


Currency Neutral Revenue Per Piece
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
 
Currency
 
 
 
June 30
 
 
 
Neutral
 
2019
 
2018
 
% Change
 
Currency
 
2019*
 
% Change
Average Revenue Per Piece:
 
 
 
 
 
 
 
 
 
 
 
International Package:
 
 
 
 
 
 
 
 
 
 
 
   Domestic
$
6.63

 
$
6.61

 
0.3
 %
 
$
0.35

 
$
6.98

 
5.6
 %
   Export
30.06

 
30.14

 
(0.3
)%
 
0.50

 
30.56

 
1.4
 %
      Total International Package
$
17.41

 
$
17.50

 
(0.5
)%
 
$
0.42

 
$
17.83

 
1.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
11.21

 
$
11.26

 
(0.4
)%
 
$
0.06

 
$
11.27

 
0.1
 %
*Amounts adjusted for period over period foreign currency exchange rate and hedging differences
 
 
 
 
 
 
 
 
 
 
 
Currency Neutral Revenue
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
 
Currency
 
 
 
June 30
 
 
 
Neutral
 
2019
 
2018
 
% Change
 
Currency
 
2019*
 
% Change
Revenue (in millions):
 
 
 
 
 
 
 
 
 
 
 
  U.S. Domestic Package
$
11,150

 
$
10,354

 
7.7
 %
 
$

 
$
11,150

 
7.7
 %
  International Package
3,505

 
3,602

 
(2.7
)%
 
81

 
3,586

 
(0.4
)%
  Supply Chain & Freight
3,393

 
3,500

 
(3.1
)%
 
31

 
3,424

 
(2.2
)%
  Total revenue
$
18,048

 
$
17,456

 
3.4
 %
 
$
112

 
$
18,160

 
4.0
 %
*Amounts adjusted for period over period foreign currency exchange rate and hedging differences
 
 
 
 
 
 
 
 
 
 
 
Currency Neutral Operating Profit
(unaudited)
 
Three Months Ended
 
 
 
 
 
Currency
 
 
 
June 30
 
 
 
 
 
Neutral
 
 
 
2019*
 
2018*
 
% Change
 
Currency
 
2019**
 
% Change
As-Adjusted Operating Profit (in millions):
 
 
 
 
 
 
 
 
 
 
  U.S. Domestic Package
$
1,226

 
$
1,135

 
8.0
 %
 
$

 
$
1,226

 
8.0
 %
  International Package
665

 
654

 
1.7
 %
 
(10
)
 
655

 
0.2
 %
  Supply Chain & Freight
273

 
247

 
10.5
 %
 
1

 
274

 
10.9
 %
  Total operating profit
$
2,164

 
$
2,036

 
6.3
 %
 
$
(9
)
 
$
2,155

 
5.8
 %
* Amounts adjusted for Transformation strategy costs
** Amounts adjusted for Transformation strategy costs and period over period foreign currency exchange rate and hedging differences


UPS Freight Selected Operating Data -Second Quarter
(unaudited)
 
Three Months Ended
 
 
 
June 30
 
 
 
2019
2018
Change
% Change
LTL revenue (in millions)
$
706

$
726

$
(20
)
(2.8
)%
LTL revenue per LTL hundredweight
$
26.34

$
25.36

$
0.98

3.9
 %
 
 
 
 
 
LTL shipments (in thousands)
2,440

2,639

(199
)
(7.5
)%
LTL shipments per day (in thousands)
38.1

41.2

(3.1
)
(7.5
)%
 
 
 
 
 
LTL gross weight hauled (in millions of pounds)
2,680

2,861

(181
)
(6.3
)%
LTL weight per shipment (in pounds)
1,098

1,084

14

1.3
 %
 
 
 
 
 
Operating weekdays
64

64


 %



Certain prior year have been reclassified to conform to the current year presentation.






United Parcel Service, Inc.
Detail of Other Operating Expenses - Second Quarter
(unaudited)
 
Three Months Ended
 
 
 
 
 
June 30
 
 
 
 
 
2019
 
2018
 
Change
 
% Change
(in millions)
 
 
 
 
 
 
 
Repairs and maintenance
$
473

 
$
423

 
$
50

 
11.8
 %
Depreciation and amortization
575

 
542

 
33

 
6.1
 %
Purchased transportation
3,000

 
3,209

 
(209
)
 
(6.5
)%
Fuel
857

 
852

 
5

 
0.6
 %
Other occupancy
322

 
321

 
1

 
0.3
 %
Other expenses
1,379

 
1,312

 
67

 
5.1
 %
Total other operating expenses
$
6,606

 
$
6,659

 
$
(53
)
 
(0.8
)%


Earnings Per Share and Share Data - Second Quarter
(unaudited)

 
Three Months Ended
 
June 30
 
2019
 
2018
(amounts in millions, except per share data)
 
 
 
Numerator:
 
 
 
    Net income
$
1,685

 
$
1,485

 
 
 
 
Denominator:
 
 
 
    Weighted-average shares
860

 
861

    Deferred compensation obligations

 
1

    Vested portion of restricted units
5

 
4

Denominator for basic earnings (loss) per share
865

 
866

 
 
 
 
Effect of dilutive securities:
 
 
 
    Restricted units
4

 
3

    Stock options

 
1

Denominator for diluted earnings (loss) per share
869

 
870

 
 
 
 
Basic earnings per share
$
1.95

 
$
1.71

 
 
 
 
Diluted earnings per share
$
1.94

 
$
1.71

 
 
 
 
 
 
 
 
Detail of shares outstanding as of June 30, 2019:
 
 
 
 
 
 
 
Class A shares
161

 
 
Class B shares
698

 
 
    Total shares outstanding
859

 
 

 














Certain prior year amounts have been reclassified to conform to the current year presentation.





United Parcel Service, Inc.
Selected Financial Data - Year to Date
(unaudited)
 
Six Months Ended
 
 
 
June 30
 
 
2019
2018
Change
% Change
(amounts in millions, except per share data)
 
 
 
 
Statement of Income Data:
 
 
 
 
Revenue:
 
 
 
 
  U.S. Domestic Package
$
21,630

$
20,581

$
1,049

5.1
 %
  International Package
6,964

7,135

(171
)
(2.4
)%
  Supply Chain & Freight
6,614

6,853

(239
)
(3.5
)%
  Total revenue
35,208

34,569

639

1.8
 %
 
 
 
 
 
Operating expenses:
 
 
 
 
  Compensation and benefits
18,616

18,069

547

3.0
 %
  Other
13,055

13,207

(152
)
(1.2
)%
  Total operating expenses
31,671

31,276

395

1.3
 %
 
 
 
 
 
Operating profit:
 
 
 
 
  U.S. Domestic Package
1,874

1,695

179

10.6
 %
  International Package
1,191

1,212

(21
)
(1.7
)%
  Supply Chain & Freight
472

386

86

22.3
 %
  Total operating profit
3,537

3,293

244

7.4
 %
 
 
 
 
 
Other income (expense):
 
 
 
 
 Other pension income (expense)
383

569

(186
)
(32.7
)%
  Investment income and other
52

27

25

92.6
 %
  Interest expense
(328
)
(302
)
(26
)
8.6
 %
  Total other income (expense)
107

294

(187
)
(63.6
)%
 
 
 
 
 
Income before income taxes
3,644

3,587

57

1.6
 %
 
 
 
 
 
Income tax expense (benefit)
848

757

91

12.0
 %
 
 
 
 
 
Net income
$
2,796

$
2,830

$
(34
)
(1.2
)%
 
 
 
 
 
Net income as a percentage of revenue
7.9
%
8.2
%
 
 
 
 
 
 
 
Per share amounts:
 
 
 
 
  Basic earnings per share
$
3.23

$
3.27

$
(0.04
)
(1.2
)%
  Diluted earnings per share
$
3.22

$
3.25

$
(0.03
)
(0.9
)%
 
 
 
 
 
Weighted-average shares outstanding:
 
 
 
 
  Basic
866

866


0.0
 %
  Diluted
869

870

(1
)
(0.1
)%
 
 
 
 
 
As adjusted income data:
 
 
 
 
Operating profit:
 
 
 
 
  U.S. Domestic Package (1)
$
1,920

$
1,891

$
29

1.5
 %
  International Package (1)
1,277

1,248

29

2.3
 %
  Supply Chain & Freight (1)
484

417

67

16.1
 %
       Total operating profit (1)
3,681

3,556

125

3.5
 %
 
 
 
 
 
Income before income taxes (1)
$
3,788

$
3,850

$
(62
)
(1.6
)%
Net income (2)
$
2,906

$
3,030

$
(124
)
(4.1
)%
 
 
 
 
 
Basic earnings per share (2)
$
3.36

$
3.50

$
(0.14
)
(4.0
)%
Diluted earnings per share (2)
$
3.34

$
3.48

$
(0.14
)
(4.0
)%

(1) 2019 operating profit and consolidated income before income taxes exclude the impact of $144 million of transformation strategy costs, that reflect other employee benefits costs of $108 million and other costs of $36 million. These costs are allocated between the U.S. Domestic Package segment ($46 million), International Package segment ($86 million) and Supply Chain & Freight segment ($12 million).

2018 operating profit and consolidated income before income taxes exclude the impact of $263 million of transformation costs, which includes voluntary retirement plan severance costs of $192 million, and other costs of $71 million. These costs are allocated between the U.S. Domestic Package segment ($196 million), International Package segment ($36 million) and Supply Chain & Freight segment ($31 million).

(2) 2019 net income and earnings per share amounts exclude the after-tax impact of the adjustments described in (1), which decreased net income by $110 million.

2018 net income and earnings per share amounts exclude the after-tax impact of the adjustments described in (1), which decreased net income by $200 million.


Certain prior year amounts have been reclassified to conform to the current year presentation.







United Parcel Service, Inc.
Selected Operating Data - Year to Date
(unaudited)
 
Six Months Ended
 
 
 
June 30
 
 
2019
2018
Change
% Change
 
 
 
 
 
Revenue (in millions):
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
$
4,014

$
3,614

$
400

11.1
 %
   Deferred
2,246

2,149

97

4.5
 %
   Ground
15,370

14,818

552

3.7
 %
      Total U.S. Domestic Package
21,630

20,581

1,049

5.1
 %
International Package:
 
 
 
 
   Domestic
1,380

1,416

(36
)
(2.5
)%
   Export
5,299

5,419

(120
)
(2.2
)%
   Cargo and Other
285

300

(15
)
(5.0
)%
      Total International Package
6,964

7,135

(171
)
(2.4
)%
Supply Chain & Freight:
 
 
 
 
   Forwarding
2,912

3,264

(352
)
(10.8
)%
Logistics
1,665

1,566

99

6.3
 %
   Freight
1,634

1,630

4

0.2
 %
   Other
403

393

10

2.5
 %
      Total Supply Chain & Freight
6,614

6,853

(239
)
(3.5
)%
Consolidated
$
35,208

$
34,569

$
639

1.8
 %
 
 
 
 
 
Consolidated volume (in millions)
2,540

2,467

73

3.0
 %
 
 
 
 
 
Operating weekdays
127

128

(1
)
(0.8
)%
 
 
 
 
 
Average Daily Package Volume (in thousands):
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
1,710

1,430

280

19.6
 %
   Deferred
1,382

1,261

121

9.6
 %
   Ground
13,829

13,483

346

2.6
 %
      Total U.S. Domestic Package
16,921

16,174

747

4.6
 %
International Package:
 
 
 
 
   Domestic
1,657

1,662

(5
)
(0.3
)%
   Export
1,419

1,435

(16
)
(1.1
)%
      Total International Package
3,076

3,097

(21
)
(0.7
)%
Consolidated
19,997

19,271

726

3.8
 %
 
 
 
 
 
Average Revenue Per Piece:
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
$
18.48

$
19.74

$
(1.26
)
(6.4
)%
   Deferred
12.80

13.31

(0.51
)
(3.8
)%
   Ground
8.75

8.59

0.16

1.9
 %
      Total U.S. Domestic Package
10.07

9.94

0.13

1.3
 %
International Package:
 
 
 
 
   Domestic
6.56

6.66

(0.10
)
(1.5
)%
   Export
29.40

29.50

(0.10
)
(0.3
)%
      Total International Package
17.10

17.24

(0.14
)
(0.8
)%
Consolidated
$
11.15

$
11.11

$
0.04

0.4
 %

















Certain prior year amounts have been reclassified to conform to the current year presentation.





United Parcel Service, Inc.
Supplemental Analysis of Currency and UPS Freight


Currency Neutral Revenue Per Piece
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended
 
 
 
 
 
Currency
 
 
 
June 30
 
 
 
Neutral
 
2019
 
2018
 
% Change
 
Currency
 
2019*
 
% Change
Average Revenue Per Piece:
 
 
 
 
 
 
 
 
 
 
 
International Package:
 
 
 
 
 
 
 
 
 
 
 
   Domestic
$
6.56

 
$
6.66

 
(1.5
)%
 
$
0.41

 
$
6.97

 
4.7
 %
   Export
29.40

 
29.50

 
(0.3
)%
 
0.62

 
30.02

 
1.8
 %
      Total International Package
$
17.10

 
$
17.24

 
(0.8
)%
 
$
0.50

 
$
17.60

 
2.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
11.15

 
$
11.11

 
0.4
 %
 
$
0.07

 
$
11.22

 
1.0
 %
*Amounts adjusted for period over period foreign currency exchange rate and hedging differences
 
 
 
 
 
 
 
 
 
 
 
Currency Neutral Revenue
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended
 
 
 
 
 
Currency
 
 
 
June 30
 
 
 
Neutral
 
2019
 
2018
 
% Change
 
Currency
 
2019*
 
% Change
Revenue (in millions):
 
 
 
 
 
 
 
 
 
 
 
  U.S. Domestic Package
$
21,630

 
$
20,581

 
5.1
 %
 
$

 
$
21,630

 
5.1
 %
  International Package
6,964

 
7,135

 
(2.4
)%
 
198

 
7,162

 
0.4
 %
  Supply Chain & Freight
6,614

 
6,853

 
(3.5
)%
 
50

 
6,664

 
(2.8
)%
  Total revenue
$
35,208

 
$
34,569

 
1.8
 %
 
$
248

 
$
35,456

 
2.6
 %
*Amounts adjusted for period over period foreign currency exchange rate and hedging differences
 
 
 
 
 
 
 
 
 
 
 
Currency Neutral Operating Profit
(unaudited)
 
Six Months Ended
 
 
 
 
 
Currency
 
 
 
June 30
 
 
 
 
 
Neutral
 
 
 
2019*
 
2018*
 
% Change
 
Currency
 
2019**
 
% Change
As-Adjusted Operating Profit (in millions):
 
 
 
 
 
 
 
 
 
 
  U.S. Domestic Package
$
1,920

 
$
1,891

 
1.5
 %
 
$

 
$
1,920

 
1.5
 %
  International Package
1,277

 
1,248

 
2.3
 %
 
(14
)
 
1,263

 
1.2
 %
  Supply Chain & Freight
484

 
417

 
16.1
 %
 
2

 
486

 
16.5
 %
  Total operating profit
$
3,681

 
$
3,556

 
3.5
 %
 
$
(12
)
 
$
3,669

 
3.2
 %
* Amounts adjusted for Transformation strategy costs
** Amounts adjusted for Transformation strategy costs and period over period foreign currency exchange rate and hedging differences


UPS Freight Selected Operating Data - Year to Date
(unaudited)
 
Six Months Ended
 
 
 
June 30
 
 
 
2019
2018
Change
% Change
LTL revenue (in millions)
$
1,341

$
1,387

$
(46
)
(3.3
)%
LTL revenue per LTL hundredweight
$
26.23

$
25.08

$
1.15

4.6
 %
 
 
 
 
 
LTL shipments (in thousands)
4,623

5,107

(484
)
(9.5
)%
LTL shipments per day (in thousands)
36.4

39.9

(3.5
)
(8.8
)%
 
 
 
 
 
LTL gross weight hauled (in millions of pounds)
5,113

5,531

(418
)
(7.6
)%
LTL weight per shipment (in pounds)
1,106

1,083

23

2.1
 %
 
 
 
 
 
Operating weekdays
127

128

(1
)
(0.8
)%



Certain prior year have been reclassified to conform to the current year presentation.






United Parcel Service, Inc.
Detail of Other Operating Expenses - Year to Date
(unaudited)
 
Six Months Ended
 
 
 
 
 
June 30
 
 
 
 
 
2019
 
2018
 
Change
 
% Change
(in millions)
 
 
 
 
 
 
 
Repairs and maintenance
$
907

 
$
857

 
$
50

 
5.8
 %
Depreciation and amortization
1,143

 
1,138

 
5

 
0.4
 %
Purchased transportation
5,966

 
6,354

 
(388
)
 
(6.1
)%
Fuel
1,627

 
1,602

 
25

 
1.6
 %
Other occupancy
693

 
682

 
11

 
1.6
 %
Other expenses
2,719

 
2,574

 
145

 
5.6
 %
Total other operating expenses
$
13,055

 
$
13,207

 
$
(152
)
 
(1.2
)%


Earnings Per Share and Share Data - Year to Date
(unaudited)

 
Six Months Ended
 
June 30
 
2019
 
2018
(amounts in millions, except per share data)
 
 
 
Numerator:
 
 
 
    Net income
$
2,796

 
$
2,830

 
 
 
 
Denominator:
 
 
 
    Weighted-average shares
860

 
861

    Deferred compensation obligations
1

 
1

    Vested portion of restricted units
5

 
4

Denominator for basic earnings (loss) per share
866

 
866

 
 
 
 
Effect of dilutive securities:
 
 
 
    Restricted units
3

 
3

    Stock options

 
1

Denominator for diluted earnings (loss) per share
869

 
870

 
 
 
 
Basic earnings per share
$
3.23

 
$
3.27

 
 
 
 
Diluted earnings per share
$
3.22

 
$
3.25

 
 
 
 

 




















Certain prior year amounts have been reclassified to conform to the current year presentation.





United Parcel Service, Inc.
Consolidated Balance Sheets - June 30, 2019 and December 31, 2018
(unaudited)

 
June 30, 2019
 
December 31, 2018
(amounts in millions)
 
 
 
 
 
 
 
ASSETS
 
 
 
Current Assets:
 
 
 
Cash and marketable securities
$
4,797

 
$
5,035

Other current assets
10,046

 
11,175

Total Current Assets
14,843

 
16,210

Property, Plant and Equipment
56,549

 
54,488

Less accumulated depreciation and amortization
28,454

 
27,912

 
28,095

 
26,576

Other Assets
9,849

 
7,230

 
$
52,787

 
$
50,016

 
 
 
 
 
 
 
 
LIABILITIES AND SHAREOWNERS' EQUITY
 
 
 
Current Liabilities
$
13,633

 
$
14,087

Long-Term Debt
20,427

 
19,931

Pension and Postretirement Benefit Obligations
7,524

 
8,347

Deferred Taxes, Credits and Other Liabilities
6,780

 
4,614

Shareowners' Equity
4,423

 
3,037

 
$
52,787

 
$
50,016


Amounts are subject to reclassification.

United Parcel Service, Inc.
Selected Cash Flow Data
(unaudited)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
 
 
Preliminary
 
 
Year-to-Date
(amounts in millions)
 
June 30
Cash flows from operating activities
 
$
4,207

Cash flows used in investing activities
 
(2,847
)
Cash flows used in financing activities
 
(1,534
)
 
 
 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
23

    Net increase/(decrease) in cash and cash equivalents and restricted cash
 
$
(151
)
 
 
 
Reconciliation of Adjusted Capital Expenditures and Free Cash Flow (non-GAAP measures)
 
 
Preliminary
 
 
Year-to-Date
(amounts in millions)
 
June 30
Cash flows from operating activities
 
$
4,207

Capital expenditures
 
(2,861
)
Principal repayments of capital lease obligations
 
(85
)
Adjusted Capital Expenditures (non-GAAP measure)
 
$
(2,946
)
Proceed from disposal of PP&E
 
6

Net change in finance receivables
 
8

Other investing activities
 
(96
)
     Adjusted Free cash flow (non-GAAP measure)
 
$
1,179

Discretionary pension contributions
 
1,005

Adjusted Free cash flow (Non-GAAP measure) excluding discretionary pension contributions
 
$
2,184



Amounts are subject to reclassification.








United Parcel Service, Inc.
Aircraft Fleet - as of June 30, 2019
(unaudited)

Description
Owned and Finance Leases
Operating Leases & Charters from Others
On Order
Under Option
Operating:
 
 
 
 
Boeing 757-200
75




Boeing 767-200

1



Boeing 767-300
60

1

12


Boeing 767-300BCF
3




Airbus A300-600
52




Boeing MD-11
37

5



Boeing 747-400F
11




Boeing 747-400BCF
2




Boeing 747-8F
11


17


Other

294



 
 
 
 
 
          Total
251

301

29