EX-99.2 3 exhibit992-q32019finan.htm EXHIBIT 99.2 - Q3 2019 FINANCIAL STATEMENT SCHEDULES Exhibit


Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - Third Quarter
(unaudited)
 
Three Months Ended
 
 
 
September 30
 
 
2019
2018
Change
% Change
(amounts in millions, except per share data)
 
 
 
 
Statement of Income Data:
 
 
 
 
Revenue:
 
 
 
 
  U.S. Domestic Package
$
11,455

$
10,437

$
1,018

9.8
 %
  International Package
3,494

3,478

16

0.5
 %
  Supply Chain & Freight
3,369

3,529

(160
)
(4.5
)%
  Total revenue
18,318

17,444

874

5.0
 %
 
 
 
 
 
Operating expenses:
 
 
 
 
  Compensation and benefits
9,590

9,015

575

6.4
 %
  Other
6,600

6,702

(102
)
(1.5
)%
  Total operating expenses
16,190

15,717

473

3.0
 %
 
 
 
 
 
Operating profit:
 
 
 
 
  U.S. Domestic Package
1,216

949

267

28.1
 %
  International Package
667

536

131

24.4
 %
  Supply Chain & Freight
245

242

3

1.2
 %
  Total operating profit
2,128

1,727

401

23.2
 %
 
 
 
 
 
Other income (expense):
 
 
 
 
 Other pension income (expense)
191

284

(93
)
(32.7
)%
  Investment income and other
46

33

13

39.4
 %
  Interest expense
(159
)
(155
)
(4
)
2.6
 %
  Total other income (expense)
78

162

(84
)
(51.9
)%
 
 
 
 
 
Income before income taxes
2,206

1,889

317

16.8
 %
 
 
 
 
 
Income tax expense (benefit)
456

381

75

19.7
 %
 
 
 
 
 
Net income
$
1,750

$
1,508

$
242

16.0
 %
 
 
 
 
 
Net income as a percentage of revenue
9.6
%
8.6
%
 
 
 
 
 
 
 
Per share amounts:
 
 
 
 
  Basic earnings per share
$
2.03

$
1.74

$
0.29

16.7
 %
  Diluted earnings per share
$
2.01

$
1.73

$
0.28

16.2
 %
 
 
 
 
 
Weighted-average shares outstanding:
 
 
 
 
  Basic
864

865

(1
)
(0.1
)%
  Diluted
870

870

—

0.0
 %
 
 
 
 
 
As adjusted income data:
 
 
 
 
Operating profit:
 
 
 
 
  U.S. Domestic Package (1)
$
1,242

$
988

$
254

25.7
 %
  International Package (1)
693

576

117

20.3
 %
  Supply Chain & Freight (1)
256

260

(4
)
(1.5
)%
       Total operating profit (1)
2,191

1,824

367

20.1
 %
 
 
 
 
 
Income before income taxes (1)
$
2,269

$
1,986

$
283

14.2
 %
Net income (2)
$
1,797

$
1,581

$
216

13.7
 %
 
 
 
 
 
Basic earnings per share (2)
$
2.08

$
1.83

$
0.25

13.7
 %
Diluted earnings per share (2)
$
2.07

$
1.82

$
0.25

13.7
 %

(1) 2019 operating profit and consolidated income before income taxes exclude the impact of $63 million of transformation strategy costs, that reflect other employee benefits costs of $41 million and other costs of $22 million. These costs are allocated between the U.S. Domestic Package segment ($26 million), International Package segment ($26 million) and Supply Chain & Freight segment ($11 million).

2018 operating profit and consolidated income before income taxes exclude the impact of $97 million of transformation costs, that reflect other employee benefits costs of $70 million and other costs of $27 million. These costs are allocated between the U.S. Domestic Package segment ($39 million), International Package segment ($40 million) and Supply Chain & Freight segment ($18 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 $47 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 $73 million.
  

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





United Parcel Service, Inc.
Selected Operating Data - Third Quarter
(unaudited)
 
Three Months Ended
 
 
 
September 30
 
 
2019
2018
Change
% Change
 
 
 
 
 
Revenue (in millions):
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
$
2,146

$
1,896

$
250

13.2
 %
   Deferred
1,248

1,066

182

17.1
 %
   Ground
8,061

7,475

586

7.8
 %
      Total U.S. Domestic Package
11,455

10,437

1,018

9.8
 %
International Package:
 
 
 
 
   Domestic
689

678

11

1.6
 %
   Export
2,673

2,654

19

0.7
 %
   Cargo and Other
132

146

(14
)
(9.6
)%
      Total International Package
3,494

3,478

16

0.5
 %
Supply Chain & Freight:
 
 
 
 
   Forwarding
1,472

1,672

(200
)
(12.0
)%
Logistics
846

790

56

7.1
 %
   Freight
852

867

(15
)
(1.7
)%
   Other
199

200

(1
)
(0.5
)%
      Total Supply Chain & Freight
3,369

3,529

(160
)
(4.5
)%
Consolidated
$
18,318

$
17,444

$
874

5.0
 %
 
 
 
 
 
Consolidated volume (in millions)
1,345

1,229

116

9.4
 %
 
 
 
 
 
Operating weekdays
64

63

1

1.6
 %
 
 
 
 
 
Average Daily Package Volume (in thousands):
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
1,891

1,526

365

23.9
 %
   Deferred
1,474

1,256

218

17.4
 %
   Ground
14,544

13,624

920

6.8
 %
      Total U.S. Domestic Package
17,909

16,406

1,503

9.2
 %
International Package:
 
 
 
 
   Domestic
1,668

1,663

5

0.3
 %
   Export
1,437

1,437

—

0.0
 %
      Total International Package
3,105

3,100

5

0.2
 %
Consolidated
21,014

19,506

1,508

7.7
 %
 
 
 
 
 
Average Revenue Per Piece:
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
$
17.73

$
19.72

$
(1.99
)
(10.1
)%
   Deferred
13.23

13.47

(0.24
)
(1.8
)%
   Ground
8.66

8.71

(0.05
)
(0.6
)%
      Total U.S. Domestic Package
9.99

10.10

(0.11
)
(1.1
)%
International Package:
 
 
 
 
   Domestic
6.45

6.47

(0.02
)
(0.3
)%
   Export
29.06

29.32

(0.26
)
(0.9
)%
      Total International Package
16.92

17.06

(0.14
)
(0.8
)%
Consolidated
$
11.02

$
11.20

$
(0.18
)
(1.6
)%

















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
 
 
 
September 30
 
 
 
Neutral
 
2019
 
2018
 
% Change
 
Currency
 
2019*
 
% Change
Average Revenue Per Piece:
 
 
 
 
 
 
 
 
 
 
 
International Package:
 
 
 
 
 
 
 
 
 
 
 
   Domestic
$
6.45

 
$
6.47

 
(0.3
)%
 
$
0.17

 
$
6.62

 
2.3
 %
   Export
29.06

 
29.32

 
(0.9
)%
 
0.06

 
29.12

 
(0.7
)%
      Total International Package
$
16.92

 
$
17.06

 
(0.8
)%
 
$
0.11

 
$
17.03

 
(0.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
11.02

 
$
11.20

 
(1.6
)%
 
$
0.01

 
$
11.03

 
(1.5
)%
*Amounts adjusted for period over period foreign currency exchange rate and hedging differences
 
 
 
 
 
 
 
 
 
 
 
Currency Neutral Revenue
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
 
Currency
 
 
 
September 30
 
 
 
Neutral
 
2019
 
2018
 
% Change
 
Currency
 
2019*
 
% Change
Revenue (in millions):
 
 
 
 
 
 
 
 
 
 
 
  U.S. Domestic Package
$
11,455

 
$
10,437

 
9.8
 %
 
$
—

 
$
11,455

 
9.8
 %
  International Package
3,494

 
3,478

 
0.5
 %
 
24

 
3,518

 
1.2
 %
  Supply Chain & Freight
3,369

 
3,529

 
(4.5
)%
 
20

 
3,389

 
(4.0
)%
  Total revenue
$
18,318

 
$
17,444

 
5.0
 %
 
$
44

 
$
18,362

 
5.3
 %
*Amounts adjusted for period over period foreign currency exchange rate and hedging differences
 
 
 
 
 
 
 
 
 
 
 
Currency Neutral Operating Profit
(unaudited)
 
Three Months Ended
 
 
 
 
 
Currency
 
 
 
September 30
 
 
 
 
 
Neutral
 
 
 
2019*
 
2018*
 
% Change
 
Currency
 
2019**
 
% Change
As-Adjusted Operating Profit (in millions):
 
 
 
 
 
 
 
 
 
 
  U.S. Domestic Package
$
1,242

 
$
988

 
25.7
 %
 
$
—

 
$
1,242

 
25.7
 %
  International Package
693

 
576

 
20.3
 %
 
(32
)
 
661

 
14.8
 %
  Supply Chain & Freight
256

 
260

 
(1.5
)%
 
7

 
263

 
1.2
 %
  Total operating profit
$
2,191

 
$
1,824

 
20.1
 %
 
$
(25
)
 
$
2,166

 
18.8
 %
* 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 -Third Quarter
(unaudited)
 
Three Months Ended
 
 
 
September 30
 
 
 
2019
2018
Change
% Change
LTL revenue (in millions)
$
699

$
735

$
(36
)
(4.9
)%
LTL revenue per LTL hundredweight
$
26.71

$
25.70

$
1.01

3.9
 %
 
 
 
 
 
LTL shipments (in thousands)
2,441

2,603

(162
)
(6.2
)%
LTL shipments per day (in thousands)
38.1

41.3

(3.2
)
(7.7
)%
 
 
 
 
 
LTL gross weight hauled (in millions of pounds)
2,617

2,860

(243
)
(8.5
)%
LTL weight per shipment (in pounds)
1,072

1,098

(26
)
(2.4
)%
 
 
 
 
 
Operating weekdays
64

63

1

1.6
 %



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





United Parcel Service, Inc.
Detail of Other Operating Expenses - Third Quarter
(unaudited)
 
Three Months Ended
 
 
 
 
 
September 30
 
 
 
 
 
2019
 
2018
 
Change
 
% Change
(in millions)
 
 
 
 
 
 
 
Repairs and maintenance
$
485

 
$
437

 
$
48

 
11.0
 %
Depreciation and amortization
587

 
524

 
63

 
12.0
 %
Purchased transportation
2,984

 
3,216

 
(232
)
 
(7.2
)%
Fuel
824

 
867

 
(43
)
 
(5.0
)%
Other occupancy
346

 
321

 
25

 
7.8
 %
Other expenses
1,374

 
1,337

 
37

 
2.8
 %
Total other operating expenses
$
6,600

 
$
6,702

 
$
(102
)
 
(1.5
)%


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

 
Three Months Ended
 
September 30
 
2019
 
2018
(amounts in millions, except per share data)
 
 
 
Numerator:
 
 
 
    Net income
$
1,750

 
$
1,508

 
 
 
 
Denominator:
 
 
 
    Weighted-average shares
858

 
860

    Deferred compensation obligations
—

 
1

    Vested portion of restricted units
6

 
4

Denominator for basic earnings (loss) per share
864

 
865

 
 
 
 
Effect of dilutive securities:
 
 
 
    Restricted units
6

 
5

    Stock options
—

 
—

Denominator for diluted earnings (loss) per share
870

 
870

 
 
 
 
Basic earnings per share
$
2.03

 
$
1.74

 
 
 
 
Diluted earnings per share
$
2.01

 
$
1.73

 
 
 
 
 
 
 
 
Detail of shares outstanding as of September 30, 2019:
 
 
 
 
 
 
 
Class A shares
157

 
 
Class B shares
701

 
 
    Total shares outstanding
858

 
 

 














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)
 
Nine Months Ended
 
 
 
September 30
 
 
2019
2018
Change
% Change
(amounts in millions, except per share data)
 
 
 
 
Statement of Income Data:
 
 
 
 
Revenue:
 
 
 
 
  U.S. Domestic Package
$
33,085

$
31,018

$
2,067

6.7
 %
  International Package
10,458

10,613

(155
)
(1.5
)%
  Supply Chain & Freight
9,983

10,382

(399
)
(3.8
)%
  Total revenue
53,526

52,013

1,513

2.9
 %
 
 
 
 
 
Operating expenses:
 
 
 
 
  Compensation and benefits
28,206

27,084

1,122

4.1
 %
  Other
19,655

19,909

(254
)
(1.3
)%
  Total operating expenses
47,861

46,993

868

1.8
 %
 
 
 
 
 
Operating profit:
 
 
 
 
  U.S. Domestic Package
3,090

2,644

446

16.9
 %
  International Package
1,858

1,748

110

6.3
 %
  Supply Chain & Freight
717

628

89

14.2
 %
  Total operating profit
5,665

5,020

645

12.8
 %
 
 
 
 
 
Other income (expense):
 
 
 
 
 Other pension income (expense)
574

853

(279
)
(32.7
)%
  Investment income and other
98

60

38

63.3
 %
  Interest expense
(487
)
(457
)
(30
)
6.6
 %
  Total other income (expense)
185

456

(271
)
(59.4
)%
 
 
 
 
 
Income before income taxes
5,850

5,476

374

6.8
 %
 
 
 
 
 
Income tax expense (benefit)
1,304

1,138

166

14.6
 %
 
 
 
 
 
Net income
$
4,546

$
4,338

$
208

4.8
 %
 
 
 
 
 
Net income as a percentage of revenue
8.5
%
8.3
%
 
 
 
 
 
 
 
Per share amounts:
 
 
 
 
  Basic earnings per share
$
5.26

$
5.01

$
0.25

5.0
 %
  Diluted earnings per share
$
5.23

$
4.99

$
0.24

4.8
 %
 
 
 
 
 
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)
$
3,162

$
2,879

$
283

9.8
 %
  International Package (1)
1,970

1,824

146

8.0
 %
  Supply Chain & Freight (1)
740

677

63

9.3
 %
       Total operating profit (1)
5,872

5,380

492

9.1
 %
 
 
 
 
 
Income before income taxes (1)
$
6,057

$
5,836

$
221

3.8
 %
Net income (2)
$
4,703

$
4,611

$
92

2.0
 %
 
 
 
 
 
Basic earnings per share (2)
$
5.44

$
5.33

$
0.11

2.1
 %
Diluted earnings per share (2)
$
5.41

$
5.30

$
0.11

2.1
 %

(1) 2019 operating profit and consolidated income before income taxes exclude the impact of $207 million of transformation strategy costs, that reflect other employee benefits costs of $149 million and other costs of $58 million. These costs are allocated between the U.S. Domestic Package segment ($72 million), International Package segment ($112 million) and Supply Chain & Freight segment ($23 million).

2018 operating profit and consolidated income before income taxes exclude the impact of $360 million of transformation costs, which includes voluntary retirement plan severance costs of $262 million, and other costs of $98 million. These costs are allocated between the U.S. Domestic Package segment ($235 million), International Package segment ($76 million) and Supply Chain & Freight segment ($49 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 $157 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 $273 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)
 
Nine Months Ended
 
 
 
September 30
 
 
2019
2018
Change
% Change
 
 
 
 
 
Revenue (in millions):
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
$
6,160

$
5,510

$
650

11.8
 %
   Deferred
3,494

3,215

279

8.7
 %
   Ground
23,431

22,293

1,138

5.1
 %
      Total U.S. Domestic Package
33,085

31,018

2,067

6.7
 %
International Package:
 
 
 
 
   Domestic
2,069

2,094

(25
)
(1.2
)%
   Export
7,972

8,073

(101
)
(1.3
)%
   Cargo and Other
417

446

(29
)
(6.5
)%
      Total International Package
10,458

10,613

(155
)
(1.5
)%
Supply Chain & Freight:
 
 
 
 
   Forwarding
4,384

4,936

(552
)
(11.2
)%
Logistics
2,511

2,356

155

6.6
 %
   Freight
2,486

2,497

(11
)
(0.4
)%
   Other
602

593

9

1.5
 %
      Total Supply Chain & Freight
9,983

10,382

(399
)
(3.8
)%
Consolidated
$
53,526

$
52,013

$
1,513

2.9
 %
 
 
 
 
 
Consolidated volume (in millions)
3,885

3,696

189

5.1
 %
 
 
 
 
 
Operating weekdays
191

191

—

0.0
 %
 
 
 
 
 
Average Daily Package Volume (in thousands):
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
1,771

1,462

309

21.1
 %
   Deferred
1,413

1,260

153

12.1
 %
   Ground
14,068

13,529

539

4.0
 %
      Total U.S. Domestic Package
17,252

16,251

1,001

6.2
 %
International Package:
 
 
 
 
   Domestic
1,661

1,662

(1
)
(0.1
)%
   Export
1,425

1,436

(11
)
(0.8
)%
      Total International Package
3,086

3,098

(12
)
(0.4
)%
Consolidated
20,338

19,349

989

5.1
 %
 
 
 
 
 
Average Revenue Per Piece:
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
$
18.21

$
19.73

$
(1.52
)
(7.7
)%
   Deferred
12.95

13.36

(0.41
)
(3.1
)%
   Ground
8.72

8.63

0.09

1.0
 %
      Total U.S. Domestic Package
10.04

9.99

0.05

0.5
 %
International Package:
 
 
 
 
   Domestic
6.52

6.60

(0.08
)
(1.2
)%
   Export
29.29

29.43

(0.14
)
(0.5
)%
      Total International Package
17.04

17.18

(0.14
)
(0.8
)%
Consolidated
$
11.10

$
11.14

$
(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)
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
 
 
 
 
Currency
 
 
 
September 30
 
 
 
Neutral
 
2019
 
2018
 
% Change
 
Currency
 
2019*
 
% Change
Average Revenue Per Piece:
 
 
 
 
 
 
 
 
 
 
 
International Package:
 
 
 
 
 
 
 
 
 
 
 
   Domestic
$
6.52

 
$
6.60

 
(1.2
)%
 
$
0.33

 
$
6.85

 
3.8
 %
   Export
29.29

 
29.43

 
(0.5
)%
 
0.43

 
29.72

 
1.0
 %
      Total International Package
$
17.04

 
$
17.18

 
(0.8
)%
 
$
0.37

 
$
17.41

 
1.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
11.10

 
$
11.14

 
(0.4
)%
 
$
0.06

 
$
11.16

 
0.2
 %
*Amounts adjusted for period over period foreign currency exchange rate and hedging differences
 
 
 
 
 
 
 
 
 
 
 
Currency Neutral Revenue
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
 
 
 
 
Currency
 
 
 
September 30
 
 
 
Neutral
 
2019
 
2018
 
% Change
 
Currency
 
2019*
 
% Change
Revenue (in millions):
 
 
 
 
 
 
 
 
 
 
 
  U.S. Domestic Package
$
33,085

 
$
31,018

 
6.7
 %
 
$
—

 
$
33,085

 
6.7
 %
  International Package
10,458

 
10,613

 
(1.5
)%
 
222

 
10,680

 
0.6
 %
  Supply Chain & Freight
9,983

 
10,382

 
(3.8
)%
 
70

 
10,053

 
(3.2
)%
  Total revenue
$
53,526

 
$
52,013

 
2.9
 %
 
$
292

 
$
53,818

 
3.5
 %
*Amounts adjusted for period over period foreign currency exchange rate and hedging differences
 
 
 
 
 
 
 
 
 
 
 
Currency Neutral Operating Profit
(unaudited)
 
Nine Months Ended
 
 
 
 
 
Currency
 
 
 
September 30
 
 
 
 
 
Neutral
 
 
 
2019*
 
2018*
 
% Change
 
Currency
 
2019**
 
% Change
As-Adjusted Operating Profit (in millions):
 
 
 
 
 
 
 
 
 
 
  U.S. Domestic Package
$
3,162

 
$
2,879

 
9.8
 %
 
$
—

 
$
3,162

 
9.8
 %
  International Package
1,970

 
1,824

 
8.0
 %
 
(46
)
 
1,924

 
5.5
 %
  Supply Chain & Freight
740

 
677

 
9.3
 %
 
9

 
749

 
10.6
 %
  Total operating profit
$
5,872

 
$
5,380

 
9.1
 %
 
$
(37
)
 
$
5,835

 
8.5
 %
* 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)
 
Nine Months Ended
 
 
 
September 30
 
 
 
2019
2018
Change
% Change
LTL revenue (in millions)
$
2,040

$
2,122

$
(82
)
(3.9
)%
LTL revenue per LTL hundredweight
$
26.39

$
25.29

$
1.10

4.3
 %
 
 
 
 
 
LTL shipments (in thousands)
7,064

7,710

(646
)
(8.4
)%
LTL shipments per day (in thousands)
37.0

40.4

(3.4
)
(8.4
)%
 
 
 
 
 
LTL gross weight hauled (in millions of pounds)
7,730

8,391

(661
)
(7.9
)%
LTL weight per shipment (in pounds)
1,094

1,088

6

0.6
 %
 
 
 
 
 
Operating weekdays
191

191

—

0.0
 %



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)
 
Nine Months Ended
 
 
 
 
 
September 30
 
 
 
 
 
2019
 
2018
 
Change
 
% Change
(in millions)
 
 
 
 
 
 
 
Repairs and maintenance
$
1,392

 
$
1,294

 
$
98

 
7.6
 %
Depreciation and amortization
1,730

 
1,662

 
68

 
4.1
 %
Purchased transportation
8,950

 
9,570

 
(620
)
 
(6.5
)%
Fuel
2,451

 
2,469

 
(18
)
 
(0.7
)%
Other occupancy
1,039

 
1,003

 
36

 
3.6
 %
Other expenses
4,093

 
3,911

 
182

 
4.7
 %
Total other operating expenses
$
19,655

 
$
19,909

 
$
(254
)
 
(1.3
)%


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

 
Nine Months Ended
 
September 30
 
2019
 
2018
(amounts in millions, except per share data)
 
 
 
Numerator:
 
 
 
    Net income
$
4,546

 
$
4,338

 
 
 
 
Denominator:
 
 
 
    Weighted-average shares
859

 
861

    Deferred compensation obligations
—

 
1

    Vested portion of restricted units
6

 
4

Denominator for basic earnings (loss) per share
865

 
866

 
 
 
 
Effect of dilutive securities:
 
 
 
    Restricted units
4

 
4

    Stock options
—

 
—

Denominator for diluted earnings (loss) per share
869

 
870

 
 
 
 
Basic earnings per share
$
5.26

 
$
5.01

 
 
 
 
Diluted earnings per share
$
5.23

 
$
4.99

 
 
 
 

 




















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




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

 
September 30, 2019
 
December 31, 2018
(amounts in millions)
 
 
 
 
 
 
 
ASSETS
 
 
 
Current Assets:
 
 
 
Cash and marketable securities
$
4,538

 
$
5,035

Other current assets
9,646

 
11,175

Total Current Assets
14,184

 
16,210

Property, Plant and Equipment
57,858

 
54,488

Less accumulated depreciation and amortization
28,787

 
27,912

 
29,071

 
26,576

Other Assets
10,027

 
7,230

 
$
53,282

 
$
50,016

 
 
 
 
 
 
 
 
LIABILITIES AND SHAREOWNERS' EQUITY
 
 
 
Current Liabilities
$
12,835

 
$
14,087

Long-Term Debt
21,740

 
19,931

Pension and Postretirement Benefit Obligations
6,443

 
8,347

Deferred Taxes, Credits and Other Liabilities
6,690

 
4,614

Shareowners' Equity
5,574

 
3,037

 
$
53,282

 
$
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)
 
September 30
Cash flows from operating activities
 
$
5,693

Cash flows used in investing activities
 
(4,027
)
Cash flows used in financing activities
 
(1,854
)
 
 
 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
6

    Net increase/(decrease) in cash and cash equivalents and restricted cash
 
$
(182
)
 
 
 
Reconciliation of Adjusted Capital Expenditures and Free Cash Flow (non-GAAP measures)
 
 
Preliminary
 
 
Year-to-Date
(amounts in millions)
 
September 30
Cash flows from operating activities
 
$
5,693

Capital expenditures
 
(4,336
)
Principal repayments of capital lease obligations
 
(120
)
Adjusted Capital Expenditures (non-GAAP measure)
 
$
(4,456
)
Proceed from disposal of PP&E
 
61

Net change in finance receivables
 
8

Other investing activities
 
(84
)
     Adjusted free cash flow (non-GAAP measure)
 
$
1,222

Discretionary pension contributions
 
2,000

Adjusted free cash flow (non-GAAP measure) excluding discretionary pension contributions
 
$
3,222



Amounts are subject to reclassification.







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

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

—

—

—

Boeing 767-200
—

—

—

—

Boeing 767-300
62

2

10

—

Boeing 767-300BCF
3

—

1

—

Boeing 767-300BDSF
—

—

4

—

Airbus A300-600
52

—

—

—

Boeing MD-11
37

—

—

—

Boeing 747-400F
11

—

—

—

Boeing 747-400BCF
2

—

—

—

Boeing 747-8F
13

—

15

—

Other
—

296

—

—

 
 
 
 
 
          Total
255

298

30

—