Announces Positive 2018 Outlook
UPS (NYSE:UPS) today announced fourth quarter 2017 earnings.
“We achieved our 2017 adjusted earnings-per-share target
through exceptionally strong revenue and yield growth, coupled with
benefits from our network investments and portfolio initiatives,”
said David Abney, UPS chairman and CEO. “We made significant
progress on key capacity investments in 2017. Our momentum,
transformative actions and the economic catalyst from the Tax Cuts
and Jobs Act (TCJA), position UPS for growth in 2018 and
beyond. We expect to unlock significant resources, which will
be available for accelerated investments in our network and create
additional opportunities for our people.”
Consolidated
Results |
4Q 2017 |
Adjusted4Q 2017 |
4Q 2016 |
Adjusted4Q 2016 |
Revenue |
$18,829 M |
|
$16,931 M |
|
Operating profit
(loss) |
$1,494 M |
$2,294 M |
$(428) M |
$2,223 M |
Diluted earnings (loss)
per share |
$1.27 |
$1.67 |
$(0.27) |
$1.63 |
Fourth-quarter 2017 GAAP results include a benefit of $0.30 per
share attributable to the TCJA. In addition, results include
a mark-to-market (MTM) non-cash, pre-tax pension charge of $800
million which represents an after-tax charge of $0.70 per diluted
share. In the prior-year period, the company reported
non-cash, after-tax charges of $1.90 per diluted share related to
mark-to-market pension charges.
For the total company in 4Q 2017:
- Revenue increased 11.2%; currency-neutral revenue was up
10.9%.
- 4Q 2017 diluted EPS of $1.27; adjusted diluted EPS of
$1.67.
- During the quarter, the company delivered 1.5 billion packages,
up 5.7% over last year.
- Record deliveries for Peak Season of 762 million, materially
above last year and over plan.
* Information on non-GAAP financial measures is attached
to this press release.
U.S. Domestic Segment
The Domestic segment is transforming its network to take full
advantage of structural changes in the direct-to-consumer
market. Demand for UPS Ground rose in the fourth quarter with
volume growth of 5.7% and revenue of 9.3%. Premium Next Day
Air shipment growth continued to be strong at 4.9% as customers
selected faster delivery options. However, bottom line
results were muted by additional peak operating expenses due to
cyber-period volume surges and short-term costs related to capacity
projects yet to come on-line.
|
4Q 2017 |
Adjusted4Q 2017 |
4Q 2016 |
Adjusted4Q 2016 |
Revenue |
$11,835
M |
|
$10,913
M |
|
Operating profit
(loss) |
$627
M |
$1,264
M |
$(570)
M |
$1,338
M |
For the U.S. Domestic segment in 4Q 2017:
- Revenue increased $922 million or 8.4% over 4Q 2016, driven by
Deferred Air and Ground.
- Revenue per piece increased 2.9%, as higher base-rate pricing
and fuel surcharges offset headwinds from customer and product mix.
- Shipments surged beyond network capacity during Cyber-periods
driving additional operating cost of $125 million.
- Saturday operations provided additional capacity and
flexibility during the quarter.
- Operating profit includes additional expense from investments
in new technology, customer solutions and automated capacity
expansion of about $60 million.
- Adjusted operating profit excludes the MTM pension charge.
International Segment
“Our International segment has generated four consecutive
quarters of double-digit export growth,” said Abney. “That
execution, combined with our growth strategy and the investments
we’ve made over the last three-and-a-half years, produced results
that exceeded expectations.”
|
4Q 2017 |
Adjusted4Q 2017 |
4Q 2016 |
Adjusted4Q 2016 |
Revenue |
$3,753
M |
|
$3,335
M |
|
Operating profit |
$725
M |
$760
M |
$281
M |
$706
M |
For the International segment in 4Q 2017:
- The segment reported revenue growth of 13% driven by premium
products.
- Export shipment growth surged 16% per day. All regions of
the world contributed to the expansion.
- 4Q 2017 operating profit was $725 million; 4Q adjusted
operating profit increased 7.6% to $760 million, the result of
broad, accelerated growth combined with expanded yields.
- Adjusted operating profit excludes the MTM pension charge.
- Currency-neutral operating profit increased 19% on an adjusted
basis.
* Information on non-GAAP financial measures is attached
to this press release.
Supply Chain and Freight Segment
The Supply Chain and Freight segment produced record full-year
and fourth-quarter results with double-digit expansion in both
revenue and adjusted operating profit. Improved market
conditions combined with revenue-quality improvements and
structural cost-reduction programs produced strong results.
|
4Q 2017 |
Adjusted4Q 2017 |
4Q 2016 |
Adjusted4Q 2016 |
Revenue |
$3,241
M |
|
$2,683
M |
|
Operating profit
(loss) |
$142
M |
$270
M |
$(139)
M |
$179
M |
For the Supply Chain and Freight segment in 4Q 2017:
- Revenue increased 21% over 4Q 2016, the result of deeper
alignment with preferred customers, strengthened revenue management
initiatives and improved market conditions.
- Tonnage gains in Freight Forwarding, UPS Freight and Coyote
Logistics contributed to improved top-line results.
- 4Q 2017 operating profit of $142 million; adjusted operating
profit was $270 million.
- Adjusted operating profit excludes the MTM pension charge.
Full-year 2017 Consolidated Results
- Total revenue increased 8.2% to $65.9 billion on shipment
growth and yield expansion.
- Full-year 2017 diluted EPS of $5.61; adjusted diluted EPS was
$6.01.
- Adjusted diluted EPS excludes the impact of both MTM pension
charge and TCJA income tax benefit.
- Company made capital expenditures of $5.2 billion during the
year.
- Paid dividends of $2.9 billion, an increase of 6.4% per share
over the prior year.
- Repurchased 16.1 million shares for approximately $1.8
billion.
Outlook
The company provides guidance on an adjusted (non-GAAP) basis
because it is not possible to predict or provide a reconciliation
reflecting the impact of future pension mark-to-market adjustments
or other unanticipated events, which would be included in reported
(GAAP) results and could be material.
“Our growth opportunities are accelerating,” said Richard
Peretz, UPS chief financial officer. “The strong economic
outlook and UPS’s high return on invested capital generates a
unique opportunity to create additional long-term value by
increasing capital investments. These investments enable UPS
to execute our strategy and we are well-positioned for 2018 and
beyond.”
- UPS expects 2018 adjusted diluted earnings per share to be in a
range of $7.03 to $7.37, which includes about $200 million of
additional pre-tax pension expense due to lower discount
rates.
- Our guidance includes TCJA benefits that will increase net
income and cash flow.
- Capital expenditures planned between $6.5 billion to $7.0
billion, mostly dedicated to investments in new technology,
aircraft and automated capacity.
Conference Call
Information
UPS CEO David Abney and CFO Richard Peretz will discuss
fourth-quarter results with investors and analysts during a
conference call at 8:30 a.m. ET, February 1, 2018. That call
is open to others through a live Webcast. To access the call,
go to www.investors.ups.com and click on “Earnings Webcast.”
About UPS
UPS (NYSE:UPS) is a global leader in logistics, offering a broad
range of solutions including transporting packages and freight;
facilitating international trade, and deploying advanced technology
to more efficiently manage the world of business. Headquartered in
Atlanta, UPS serves more than 220 countries and territories
worldwide. The company can be found on the web
at ups.com or
pressroom.ups.com and its corporate blog can be
found at longitudes.ups.com. To get UPS news
direct, follow @UPS_News on
Twitter.
Forward-Looking Statements
Except for historical information contained herein, the
statements made in this release constitute forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Such forward-looking statements, including statements regarding the
intent, belief or current expectations of UPS and its management
regarding the company's strategic directions, prospects and future
results, involve certain risks and uncertainties.
Certain factors may cause actual results to differ materially
from those contained in the forward-looking statements, including
economic and other conditions in the markets in which we operate,
governmental regulations (including tax laws and regulations), our
competitive environment, changes in the facts or assumptions
underlying our health and pension benefit funding obligations,
negotiation and ratification of labor contracts, strikes, work
stoppages and slowdowns, changes in aviation and motor fuel prices,
cyclical and seasonal fluctuations in our operating results, and
other risks discussed in the company's Form 10-K and other filings
with the Securities and Exchange Commission, which discussions are
incorporated herein by reference.
Reconciliation of GAAP and non-GAAP Financial Measures
We supplement the reporting of our financial information
determined under generally accepted accounting principles ("GAAP")
with certain non-GAAP financial measures, including, as applicable,
"as adjusted" operating profit, operating margin, pre-tax income,
net income and earnings per share. The equivalent measures
determined in accordance with GAAP are also referred to as
"reported" or "unadjusted.” Additionally, we periodically disclose
free cash flow, free cash flow excluding discretionary pension
contributions, as well as currency-neutral revenue, revenue per
piece and operating profit.
We consider quantitative and qualitative factors in assessing
whether to adjust for the impact of items that may be significant
or that could affect an understanding of our ongoing financial and
business performance or trends. Examples of items for which we may
make adjustments include but are not limited to: amounts related to
mark-to-market gains or losses (non-cash); settlement of
contingencies; gains or losses associated with mergers,
acquisitions, divestitures and other structural changes; charges
related to restructuring programs; asset impairments (non-cash);
amounts related to changes in tax regulations or positions; pension
and postretirement related items; and debt modifications.
We believe that these non-GAAP measures provide additional
meaningful information to assist users of our financial statements
in understanding our financial results, cash flows and assessing
our ongoing performance because they exclude items that may not be
indicative of, or are unrelated to, our underlying operations and
may provide a useful baseline for analyzing trends in our
underlying businesses. Management uses these non-GAAP financial
measures in making financial, operating and planning decisions. We
also use certain of these measures for the determination of
incentive compensation award results.
Non-GAAP financial measures should be considered in addition to,
and not as an alternative for, our reported results prepared in
accordance with GAAP. Our non-GAAP financial information does not
represent a comprehensive basis of accounting. Therefore, our
non-GAAP financial information may not be comparable to similarly
titled measures reported by other companies.
Mark-To-Market Pension and Postretirement Adjustments
We recognize changes in the fair value of plan assets and net
actuarial gains and losses in excess of a 10% corridor for
company-sponsored pension and post-retirement obligations
immediately as part of net periodic benefit cost. We supplement the
presentation of our operating profit, operating margin, pre-tax
income, net income and earnings per share with similar non-GAAP
measures that exclude the impact of the portion of net periodic
benefit cost represented by the gains and losses recognized in
excess of the 10% corridor and the related income tax effects. We
believe this adjusted net periodic benefit cost provides important
supplemental information that reflects the anticipated long-term
cost of our defined benefit plans, and provides a benchmark for
historical defined benefit cost trends that may provide useful
comparison of year-to-year financial performance without
considering the short-term impact of changes in market interest
rates, equity prices, and similar factors.
This adjusted net periodic benefit cost ($843 million in 2017
and $1,074 million in 2016) is comparable to the accounting for our
defined benefit plans in our quarterly reporting under U.S. GAAP,
utilizing the expected return on plan assets (8.65% in 2017
and 8.65% in 2016) and the discount rate used to determine net
periodic benefit cost (4.34% in 2017 and 4.81% in 2016). The
non-adjusted net periodic benefit cost reflects the actual return
on plan assets (12.45% in 2017 and 6.06% in 2016) and the
discount rate used to measure the projected benefit obligation at
the December 31 measurement date (3.81% in 2017 and 4.34% in
2016).
The deferred income tax effects of these mark-to-market pension
and postretirement adjustments are calculated by multiplying the
statutory tax rates applicable in each tax jurisdiction, including
the U.S. federal jurisdiction and various U.S. state and non-U.S.
jurisdictions, by the adjustments. The blended average of the
applicable statutory tax rates in 2017 and 2016 were 24.1% and
36.9%, respectively.
Tax Cuts and Jobs Act of 2017
On December 22, 2017, the Tax Cuts and Jobs Act (TCJA) was
enacted that significantly revises U.S. corporate income tax law
by, among other things, reducing the corporate income tax rate to
21% and implementing a modified territorial tax system, that
includes a one-time transition tax on deemed repatriated earnings
of foreign subsidiaries. Net Income and diluted earnings per share
as adjusted, excluding the benefit from TCJA of $258 million, is a
non-GAAP measure. The tax benefit was primarily due to the TCJA’s
reduction in the corporate tax rate that resulted in a
remeasurement of our net deferred tax liability. We believe diluted
earnings per share excluding the tax benefit is useful in
evaluating our ongoing operating performance for the current period
to that of other periods presented. The estimates are based on our
initial analysis and current interpretation of the TCJA. Given the
significant complexity of the Act, anticipated guidance from the U.
S. Treasury about implementing the Act, and the potential for
additional guidance from the Securities and Exchange Commission or
the Financial Accounting Standards Board related to the Act, our
estimates may be refined in the future.
Weighted-Average Shares Outstanding and Diluted Earnings per
Share
The computation of weighted-average shares outstanding and
diluted earnings per share for the fourth quarter of 2016 excludes
the effect of certain incentive compensation awards because they
were anti-dilutive in consideration of our reported net loss.
Adjusted diluted earnings per share for this period includes the
dilutive effect of these same shares because we are reporting
adjusted net income after excluding the mark-to-market pension and
postretirement adjustment.
Currency-Neutral Revenue, Revenue per Piece and Operating
Profit
We supplement the reporting of our revenue, revenue per piece
and operating profit with similar non-GAAP measures that exclude
the period-over-period impact of foreign currency exchange rate
changes and hedging activities. We believe currency-neutral
revenue, revenue per piece and operating profit information allows
users of our financial statements to understand growth trends in
our products and results. We evaluate the performance of our
International Package and Supply Chain and Freight businesses on a
currency-neutral basis.
Currency-neutral revenue, revenue per piece and operating profit
are calculated by dividing current period reported U.S. dollar
revenue, revenue per piece and operating profit by the current
period average exchange rates to derive current period local
currency revenue, revenue per piece and operating profit. The
derived current period local currency revenue, revenue per piece
and operating profit are then multiplied by the average foreign
exchange rates used to translate the comparable results for each
month in the prior year period (including the period over period
impact of foreign currency revenue hedging activities). The
difference between the current period reported U.S. dollar revenue,
revenue per piece and operating profit and the derived current
period U.S. dollar revenue, revenue per piece and operating profit
is the period over period impact of currency fluctuations.
Free Cash Flow
We supplement the reporting of cash flows from operating
activities with free cash flow and free cash flow excluding
discretionary pension contributions, non-GAAP liquidity measures.
We believe free cash flow is an important indicator of how much
cash is generated by regular business operations and we use it as a
measure of incremental cash available to invest in our business,
meet our debt obligations and return cash to shareowners. We
calculate free cash flow as cash flows from operating activities
less capital expenditures, proceeds from disposals of property,
plant and equipment, and plus or minus the net changes in finance
receivables and other investing activities.
We believe free cash flow excluding
discretionary pension contributions is an important indicator of
how much cash is generated by regular business operations and we
use it to monitor our cash flow performance. We also believe this
non-GAAP measure provides investors additional useful information
when evaluating our cash flows from operating activities.
Reconciliation of GAAP and non-GAAP Income
Statement Data (in millions, except EPS amounts): |
|
Three Months Ended December 31,
2017 |
|
|
|
|
|
|
|
|
|
As-Reported (GAAP) |
Defined Benefit Plans MTM Charges |
Impact of TCJA |
As-Adjusted (non-GAAP) |
|
Operating
profit: |
|
|
|
|
|
|
U.S. Domestic Package |
|
$ |
627 |
|
$ |
637 |
$ |
- |
|
$ |
1,264 |
|
International Package |
|
|
725 |
|
|
35 |
|
- |
|
|
760 |
|
Supply Chain & Freight |
|
|
142 |
|
|
128 |
|
- |
|
|
270 |
|
Total operating profit |
|
$ |
1,494 |
|
$ |
800 |
$ |
- |
|
$ |
2,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes |
|
$ |
284 |
|
$ |
193 |
$ |
258 |
|
$ |
735 |
|
|
|
|
|
|
|
|
Net
income |
|
$ |
1,104 |
|
$ |
607 |
$ |
(258 |
) |
$ |
1,453 |
|
|
|
|
|
|
|
|
Diluted
earnings per share |
|
$ |
1.27 |
|
$ |
0.70 |
$ |
(0.30 |
) |
$ |
1.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
2016 |
|
|
|
|
|
|
|
|
|
As-Reported (GAAP) |
Defined Benefit Plans MTM Charges |
Impact of TCJA |
As-Adjusted (non-GAAP) |
|
Operating
profit (loss): |
|
|
|
|
|
|
U.S. Domestic Package |
|
$ |
(570 |
) |
$ |
1,908 |
$ |
- |
|
$ |
1,338 |
|
International Package |
|
|
281 |
|
|
425 |
|
- |
|
|
706 |
|
Supply Chain & Freight |
|
|
(139 |
) |
|
318 |
|
- |
|
|
179 |
|
Total operating profit |
|
$ |
(428 |
) |
$ |
2,651 |
$ |
- |
|
$ |
2,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes |
|
$ |
(277 |
) |
$ |
978 |
$ |
- |
|
$ |
701 |
|
|
|
|
|
|
|
|
Net
income (loss) |
|
$ |
(239 |
) |
$ |
1,673 |
$ |
- |
|
$ |
1,434 |
|
|
|
|
|
|
|
|
Diluted
weighted avg. shares |
|
|
876 |
|
|
5 |
|
|
881 |
|
|
|
|
|
|
|
|
Diluted
earnings (loss) per share |
|
$ |
(0.27 |
) |
$ |
1.90 |
$ |
- |
|
$ |
1.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Certain amounts may not compute due to rounding.
Reconciliation of GAAP and non-GAAP Income
Statement Data (in millions, except EPS amounts): |
|
Year Ended December 31, 2017 |
|
|
|
|
|
|
|
|
|
As-Reported (GAAP) |
Defined Benefit Plans MTM Charges |
Impact of TCJA |
As-Adjusted (non-GAAP) |
|
Operating
profit: |
|
|
|
|
|
|
U.S. Domestic Package |
|
$ |
4,280 |
$ |
637 |
$ |
- |
|
$ |
4,917 |
|
International Package |
|
|
2,464 |
|
35 |
|
- |
|
|
2,499 |
|
Supply Chain & Freight |
|
|
785 |
|
128 |
|
- |
|
|
913 |
|
Total operating profit |
|
$ |
7,529 |
$ |
800 |
$ |
- |
|
$ |
8,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes |
|
$ |
2,238 |
$ |
193 |
$ |
258 |
|
$ |
2,689 |
|
|
|
|
|
|
|
|
Net
income |
|
$ |
4,910 |
$ |
607 |
$ |
(258 |
) |
$ |
5,259 |
|
|
|
|
|
|
|
|
Diluted
earnings per share |
|
$ |
5.61 |
$ |
0.69 |
$ |
(0.29 |
) |
$ |
6.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2016 |
|
|
|
|
|
|
|
|
|
As-Reported (GAAP) |
Defined Benefit Plans MTM Charges |
Impact of TCJA |
As-Adjusted (non-GAAP) |
|
Operating
profit: |
|
|
|
|
|
|
U.S. Domestic Package |
|
$ |
3,017 |
$ |
1,908 |
$ |
- |
|
$ |
4,925 |
|
International Package |
|
|
2,044 |
|
425 |
|
- |
|
|
2,469 |
|
Supply Chain & Freight |
|
|
406 |
|
318 |
|
- |
|
|
724 |
|
Total operating profit |
|
$ |
5,467 |
$ |
2,651 |
$ |
- |
|
$ |
8,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes |
|
$ |
1,705 |
$ |
978 |
$ |
- |
|
$ |
2,683 |
|
|
|
|
|
|
|
|
Net
income |
|
$ |
3,431 |
$ |
1,673 |
$ |
- |
|
$ |
5,104 |
|
|
|
|
|
|
|
|
Diluted
earnings per share |
|
$ |
3.87 |
$ |
1.88 |
$ |
- |
|
$ |
5.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Certain amounts may not compute due to rounding.
Reconciliation of GAAP and non-GAAP Revenue,
Revenue Per Piece and As-Adjusted Currency Neutral Operating
Profit (in millions, except Per Piece
amounts): |
|
|
Three Months Ended December 31 |
|
|
|
|
|
|
|
|
2017 As-Reported (GAAP) |
2016 As-Reported (GAAP) |
% Change (GAAP) |
Currency Impact |
2017 Currency-Neutral
(non-GAAP) |
% Change (non-GAAP) |
Average Revenue
Per Piece: |
|
|
|
|
|
|
International Package: |
|
|
|
|
|
|
Domestic |
$ |
6.31 |
$ |
5.57 |
13.3 |
% |
$ |
(0.45 |
) |
$ |
5.86 |
5.2 |
% |
Export |
|
28.50 |
|
29.50 |
-3.4 |
% |
|
0.28 |
|
|
28.78 |
-2.4 |
% |
Total
International Package |
$ |
16.57 |
$ |
15.90 |
4.2 |
% |
$ |
(0.12 |
) |
$ |
16.45 |
3.5 |
% |
|
|
|
|
|
|
|
Consolidated |
$ |
10.19 |
$ |
9.85 |
3.5 |
% |
$ |
(0.02 |
) |
$ |
10.17 |
3.2 |
% |
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
11,835 |
$ |
10,913 |
8.4 |
% |
$ |
- |
|
$ |
11,835 |
8.4 |
% |
International Package |
|
3,753 |
|
3,335 |
12.5 |
% |
|
(27 |
) |
|
3,726 |
11.7 |
% |
Supply
Chain & Freight |
|
3,241 |
|
2,683 |
20.8 |
% |
|
(25 |
) |
|
3,216 |
19.9 |
% |
Total
revenue |
$ |
18,829 |
$ |
16,931 |
11.2 |
% |
$ |
(52 |
) |
$ |
18,777 |
10.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 As-Adjusted
(non-GAAP) |
2016 As-Adjusted
(non-GAAP) |
% Change (non-GAAP) |
Currency Impact |
2017 As-Adjusted
Currency-Neutral (non-GAAP) |
% Change (non-GAAP) |
As-Adjusted
Operating Profit: |
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
1,264 |
$ |
1,338 |
-5.5 |
% |
$ |
- |
|
$ |
1,264 |
-5.5 |
% |
International Package |
|
760 |
|
706 |
7.6 |
% |
|
80 |
|
|
840 |
19.0 |
% |
Supply
Chain & Freight |
|
270 |
|
179 |
50.8 |
% |
|
1 |
|
|
271 |
51.4 |
% |
Total
operating profit |
$ |
2,294 |
$ |
2,223 |
3.2 |
% |
$ |
81 |
|
$ |
2,375 |
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP and non-GAAP Revenue,
Revenue Per Piece and As-Adjusted Currency Neutral Operating
Profit (in millions, except Per Piece
amounts): |
|
|
Year Ended December 31 |
|
|
|
|
|
|
|
|
2017 As-Reported (GAAP) |
2016 As-Reported (GAAP) |
% Change (GAAP) |
Currency Impact |
2017 Currency-Neutral
(non-GAAP) |
% Change (non-GAAP) |
Average Revenue
Per Piece: |
|
|
|
|
|
|
International Package: |
|
|
|
|
|
|
Domestic |
$ |
6.08 |
$ |
5.85 |
3.9 |
% |
$ |
(0.03 |
) |
$ |
6.05 |
3.4 |
% |
Export |
|
28.69 |
|
30.38 |
-5.6 |
% |
|
0.95 |
|
|
29.64 |
-2.4 |
% |
Total
International Package |
$ |
16.22 |
$ |
16.29 |
-0.4 |
% |
$ |
0.41 |
|
$ |
16.63 |
2.1 |
% |
|
|
|
|
|
|
|
Consolidated |
$ |
10.53 |
$ |
10.30 |
2.2 |
% |
$ |
0.06 |
|
$ |
10.59 |
2.8 |
% |
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
40,764 |
$ |
38,301 |
6.4 |
% |
$ |
- |
|
$ |
40,764 |
6.4 |
% |
International Package |
|
13,338 |
|
12,350 |
8.0 |
% |
|
325 |
|
|
13,663 |
10.6 |
% |
Supply
Chain & Freight |
|
11,770 |
|
10,255 |
14.8 |
% |
|
(10 |
) |
|
11,760 |
14.7 |
% |
Total
revenue |
$ |
65,872 |
$ |
60,906 |
8.2 |
% |
$ |
315 |
|
$ |
66,187 |
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 As-Adjusted
(non-GAAP) |
2016 As-Adjusted
(non-GAAP) |
% Change
(non-GAAP) |
Currency Impact |
2017 As-Adjusted
Currency-Neutral (non-GAAP) |
% Change (non-GAAP) |
As-Adjusted
Operating Profit: |
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
4,917 |
$ |
4,925 |
-0.2 |
% |
$ |
- |
$ |
4,917 |
-0.2 |
% |
International Package |
|
2,499 |
|
2,469 |
1.2 |
% |
|
375 |
|
2,874 |
16.4 |
% |
Supply
Chain & Freight |
|
913 |
|
724 |
26.1 |
% |
|
2 |
|
915 |
26.4 |
% |
Total
operating profit |
$ |
8,329 |
$ |
8,118 |
2.6 |
% |
$ |
377 |
$ |
8,706 |
7.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP and non-GAAP Liquidity
Measures (in millions) |
|
|
Year Ended December 31 |
|
|
Net Increase (Decrease) in Cash and Cash
Equivalents |
|
|
|
|
2017 |
|
Cash flows from
operating activities |
$ |
1,479 |
|
Cash flows used in
investing activities |
|
(4,975) |
|
Cash flows from
financing activities |
|
3,287 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
53 |
|
Net (decrease) in cash
and cash equivalents |
$ |
(156) |
|
|
|
Reconciliation of Free Cash Flow
(non-GAAP) |
|
|
|
|
2017 |
|
|
|
Cash flows from
operating activities (GAAP) |
$ |
1,479 |
|
Capital
expenditures |
|
(5,227) |
|
Proceeds from disposals
of PP&E |
|
24 |
|
Net change in finance
receivables |
|
5 |
|
Other investing
activities |
|
1 |
|
Free cash
flow (non-GAAP) |
$ |
(3,718) |
|
Discretionary pension
contributions |
|
7,291 |
|
Free cash
flow, excluding discretionary pension contributions (non-GAAP) |
$ |
3,573 |
|
|
|
|
|
United Parcel Service, Inc. |
Selected Financial Data - Fourth
Quarter |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
December 31 |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Change |
|
% Change |
|
|
(amounts in millions,
except per share data) |
|
|
|
|
|
|
|
|
|
Statement of
Income Data: |
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
11,835 |
|
|
$ |
10,913 |
|
|
$ |
922 |
|
|
8.4 |
% |
|
|
International Package |
|
3,753 |
|
|
|
3,335 |
|
|
|
418 |
|
|
12.5 |
% |
|
|
Supply
Chain & Freight |
|
3,241 |
|
|
|
2,683 |
|
|
|
558 |
|
|
20.8 |
% |
|
|
Total
revenue |
|
18,829 |
|
|
|
16,931 |
|
|
|
1,898 |
|
|
11.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
10,131 |
|
|
|
11,322 |
|
|
|
(1,191 |
) |
|
-10.5 |
% |
|
|
Other |
|
7,204 |
|
|
|
6,037 |
|
|
|
1,167 |
|
|
19.3 |
% |
|
|
Total
operating expenses |
|
17,335 |
|
|
|
17,359 |
|
|
|
(24 |
) |
|
-0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
|
627 |
|
|
|
(570 |
) |
|
|
1,197 |
|
|
N/A |
|
|
|
International Package |
|
725 |
|
|
|
281 |
|
|
|
444 |
|
|
158.0 |
% |
|
|
Supply
Chain & Freight |
|
142 |
|
|
|
(139 |
) |
|
|
281 |
|
|
N/A |
|
|
|
Total
operating profit |
|
1,494 |
|
|
|
(428 |
) |
|
|
1,922 |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
Investment income and
other |
|
23 |
|
|
|
12 |
|
|
|
11 |
|
|
91.7 |
% |
|
|
Interest expense |
|
(129 |
) |
|
|
(100 |
) |
|
|
(29 |
) |
|
29.0 |
% |
|
|
Total other income
(expense) |
|
(106 |
) |
|
|
(88 |
) |
|
|
(18 |
) |
|
20.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes |
|
1,388 |
|
|
|
(516 |
) |
|
|
1,904 |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
284 |
|
|
|
(277 |
) |
|
|
561 |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
1,104 |
|
|
$ |
(239 |
) |
|
$ |
1,343 |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) as a
percentage of revenue |
|
5.9 |
% |
|
|
-1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
|
|
Basic
earnings (loss) per share |
$ |
1.27 |
|
|
$ |
(0.27 |
) |
|
$ |
1.54 |
|
|
N/A |
|
|
|
Diluted
earnings (loss) per share |
$ |
1.27 |
|
|
$ |
(0.27 |
) |
|
$ |
1.54 |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
867 |
|
|
|
876 |
|
|
|
(9 |
) |
|
-1.0 |
% |
|
|
Diluted |
|
872 |
|
|
|
876 |
|
|
|
(4 |
) |
|
-0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
As adjusted
income data: |
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package (1) |
$ |
1,264 |
|
|
$ |
1,338 |
|
|
|
(74 |
) |
|
-5.5 |
% |
|
|
International Package (1) |
|
760 |
|
|
|
706 |
|
|
|
54 |
|
|
7.6 |
% |
|
|
Supply
Chain & Freight (1) |
|
270 |
|
|
|
179 |
|
|
|
91 |
|
|
50.8 |
% |
|
|
Total
operating profit (1) |
|
2,294 |
|
|
|
2,223 |
|
|
|
71 |
|
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes (1) |
$ |
2,188 |
|
|
$ |
2,135 |
|
|
$ |
53 |
|
|
2.5 |
% |
|
|
Net income (2) |
$ |
1,453 |
|
|
$ |
1,434 |
|
|
$ |
19 |
|
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share (2) |
$ |
1.68 |
|
|
$ |
1.64 |
|
|
$ |
0.04 |
|
|
2.4 |
% |
|
|
Diluted earnings per
share (2) |
$ |
1.67 |
|
|
$ |
1.63 |
|
|
$ |
0.04 |
|
|
2.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) 2017 operating profit and consolidated income before income
taxes exclude the impact of an increase in pension expense due to a
mark-to-market loss recognized outside of a 10% corridor of $800
million, allocated between the U.S. Domestic Package segment ($637
million), International Package segment ($35 million), and Supply
Chain & Freight segment ($128 million).
2016 operating profit and consolidated income before income
taxes exclude the impact of an increase in pension expense due to a
mark-to-market loss recognized outside of a 10% corridor of $2.651
billion, allocated between the U.S. Domestic Package segment
($1.908 billion), International Package segment ($425 million), and
Supply Chain & Freight segment ($318 million).
(2) 2017 net income and earnings per share amounts exclude the
after-tax impact of the adjustments described in (1), which
decreased net income by $607 million. 2017 net income also excludes
income tax benefits of $258 million attributable to the 2017 Tax
Cuts and Jobs Act.
2016 net income and earnings per share amounts exclude the
after-tax impact of the adjustments described in (1), which
decreased net income by $1.673 billion. 2016 diluted earnings per
share is based on weighted-average shares outstanding of 881
million, which includes the effect of 5 million dilutive shares and
share equivalents.
|
|
United Parcel Service, Inc. |
Selected Operating Data - Fourth
Quarter |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
December 31 |
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
Next Day
Air |
$ |
1,905 |
|
$ |
1,834 |
|
$ |
71 |
|
|
3.9 |
% |
|
|
Deferred |
|
1,429 |
|
|
1,301 |
|
|
128 |
|
|
9.8 |
% |
|
|
Ground |
|
8,501 |
|
|
7,778 |
|
|
723 |
|
|
9.3 |
% |
|
|
Total
U.S. Domestic Package |
|
11,835 |
|
|
10,913 |
|
|
922 |
|
|
8.4 |
% |
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
Domestic |
|
739 |
|
|
637 |
|
|
102 |
|
|
16.0 |
% |
|
|
Export |
|
2,869 |
|
|
2,561 |
|
|
308 |
|
|
12.0 |
% |
|
|
Cargo and
Other |
|
145 |
|
|
137 |
|
|
8 |
|
|
5.8 |
% |
|
|
Total
International Package |
|
3,753 |
|
|
3,335 |
|
|
418 |
|
|
12.5 |
% |
|
|
Supply Chain &
Freight: |
|
|
|
|
|
|
|
|
|
Forwarding and Logistics |
|
2,272 |
|
|
1,813 |
|
|
459 |
|
|
25.3 |
% |
|
|
Freight |
|
758 |
|
|
686 |
|
|
72 |
|
|
10.5 |
% |
|
|
Other |
|
211 |
|
|
184 |
|
|
27 |
|
|
14.7 |
% |
|
|
Total
Supply Chain & Freight |
|
3,241 |
|
|
2,683 |
|
|
558 |
|
|
20.8 |
% |
|
|
Consolidated |
$ |
18,829 |
|
$ |
16,931 |
|
$ |
1,898 |
|
|
11.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated volume (in
millions) |
|
1,515 |
|
|
1,433 |
|
|
82 |
|
|
5.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays |
|
63 |
|
|
63 |
|
|
- |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Package Volume (in thousands): |
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
Next Day
Air |
|
1,660 |
|
|
1,582 |
|
|
78 |
|
|
4.9 |
% |
|
|
Deferred |
|
1,868 |
|
|
1,827 |
|
|
41 |
|
|
2.2 |
% |
|
|
Ground |
|
17,069 |
|
|
16,142 |
|
|
927 |
|
|
5.7 |
% |
|
|
Total
U.S. Domestic Package |
|
20,597 |
|
|
19,551 |
|
|
1,046 |
|
|
5.4 |
% |
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
Domestic |
|
1,859 |
|
|
1,815 |
|
|
44 |
|
|
2.4 |
% |
|
|
Export |
|
1,598 |
|
|
1,378 |
|
|
220 |
|
|
16.0 |
% |
|
|
Total
International Package |
|
3,457 |
|
|
3,193 |
|
|
264 |
|
|
8.3 |
% |
|
|
Consolidated |
|
24,054 |
|
|
22,744 |
|
|
1,310 |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
Next Day
Air |
$ |
18.22 |
|
$ |
18.40 |
|
$ |
(0.18 |
) |
|
-1.0 |
% |
|
|
Deferred |
|
12.14 |
|
|
11.30 |
|
|
0.84 |
|
|
7.4 |
% |
|
|
Ground |
|
7.91 |
|
|
7.65 |
|
|
0.26 |
|
|
3.4 |
% |
|
|
Total
U.S. Domestic Package |
|
9.12 |
|
|
8.86 |
|
|
0.26 |
|
|
2.9 |
% |
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
Domestic |
|
6.31 |
|
|
5.57 |
|
|
0.74 |
|
|
13.3 |
% |
|
|
Export |
|
28.50 |
|
|
29.50 |
|
|
(1.00 |
) |
|
-3.4 |
% |
|
|
Total
International Package |
|
16.57 |
|
|
15.90 |
|
|
0.67 |
|
|
4.2 |
% |
|
|
Consolidated |
$ |
10.19 |
|
$ |
9.85 |
|
$ |
0.34 |
|
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Supplemental Analysis of Currency and UPS
Freight |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue Per
Piece |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Currency |
|
|
|
|
|
|
December 31 |
|
|
|
|
|
Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
$ |
6.31 |
|
$ |
5.57 |
|
|
13.3 |
% |
|
$ |
(0.45 |
) |
|
$ |
5.86 |
|
5.2 |
% |
|
|
|
Export |
|
28.50 |
|
|
29.50 |
|
|
-3.4 |
% |
|
|
0.28 |
|
|
|
28.78 |
|
-2.4 |
% |
|
|
|
Total
International Package |
$ |
16.57 |
|
$ |
15.90 |
|
|
4.2 |
% |
|
$ |
(0.12 |
) |
|
$ |
16.45 |
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
$ |
10.19 |
|
$ |
9.85 |
|
|
3.5 |
% |
|
$ |
(0.02 |
) |
|
$ |
10.17 |
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Currency |
|
|
|
|
|
|
December 31 |
|
|
|
|
|
Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
11,835 |
|
$ |
10,913 |
|
|
8.4 |
% |
|
$ |
- |
|
|
$ |
11,835 |
|
8.4 |
% |
|
|
|
International Package |
|
3,753 |
|
|
3,335 |
|
|
12.5 |
% |
|
|
(27 |
) |
|
|
3,726 |
|
11.7 |
% |
|
|
|
Supply
Chain & Freight |
|
3,241 |
|
|
2,683 |
|
|
20.8 |
% |
|
|
(25 |
) |
|
|
3,216 |
|
19.9 |
% |
|
|
|
Total
revenue |
$ |
18,829 |
|
$ |
16,931 |
|
|
11.2 |
% |
|
$ |
(52 |
) |
|
$ |
18,777 |
|
10.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As-Adjusted Currency Neutral Operating
Profit |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
As-Adjusted Currency |
|
|
|
|
December 31 |
|
|
|
|
|
Neutral |
|
|
|
|
2017* |
|
2016* |
|
% Change |
|
Currency |
|
2017** |
|
% Change |
|
|
|
As-Adjusted Operating profit (in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
1,264 |
|
$ |
1,338 |
|
|
-5.5 |
% |
|
$ |
- |
|
|
$ |
1,264 |
|
-5.5 |
% |
|
|
|
International Package |
|
760 |
|
|
706 |
|
|
7.6 |
% |
|
|
80 |
|
|
|
840 |
|
19.0 |
% |
|
|
|
Supply
Chain & Freight |
|
270 |
|
|
179 |
|
|
50.8 |
% |
|
|
1 |
|
|
|
271 |
|
51.4 |
% |
|
|
|
Total
operating profit |
$ |
2,294 |
|
$ |
2,223 |
|
|
3.2 |
% |
|
$ |
81 |
|
|
$ |
2,375 |
|
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for Defined Benefit Plans MTM charges |
|
|
|
|
|
|
|
|
|
|
|
|
** Amounts
adjusted for Defined Benefit Plans MTM charges and period over
period foreign currency exchange rate and hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UPS Freight Selected Operating Data - Fourth
Quarter |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
December 31 |
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
LTL revenue (in
millions) |
$ |
653 |
|
$ |
604 |
|
$ |
49 |
|
|
|
8.1 |
% |
|
|
|
|
|
|
|
LTL revenue per LTL
hundredweight |
$ |
24.63 |
|
$ |
23.42 |
|
$ |
1.21 |
|
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL shipments (in
thousands) |
|
2,464 |
|
|
2,447 |
|
|
17 |
|
|
|
0.7 |
% |
|
|
|
|
|
|
|
LTL shipments per day
(in thousands) |
|
40.4 |
|
|
40.1 |
|
|
0.3 |
|
|
|
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL gross weight hauled
(in millions of pounds) |
|
2,651 |
|
|
2,578 |
|
|
73 |
|
|
|
2.8 |
% |
|
|
|
|
|
|
|
LTL weight per shipment
(in pounds) |
|
1,076 |
|
|
1,054 |
|
|
22 |
|
|
|
2.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays |
|
61 |
|
|
61 |
|
|
- |
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
United Parcel Service, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detail of Other Operating Expenses - Fourth
Quarter |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
(in millions) |
Three Months Ended |
|
|
|
|
|
|
December 31 |
|
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
Repairs and
maintenance |
$ |
420 |
|
$ |
388 |
|
$ |
32 |
|
|
8.2 |
% |
|
|
Depreciation and
amortization |
|
594 |
|
|
563 |
|
|
31 |
|
|
5.5 |
% |
|
|
Purchased
transportation |
|
3,528 |
|
|
2,823 |
|
|
705 |
|
|
25.0 |
% |
|
|
Fuel |
|
817 |
|
|
638 |
|
|
179 |
|
|
28.1 |
% |
|
|
Other occupancy |
|
310 |
|
|
275 |
|
|
35 |
|
|
12.7 |
% |
|
|
Other expenses |
|
1,535 |
|
|
1,350 |
|
|
185 |
|
|
13.7 |
% |
|
|
Total other operating
expenses |
$ |
7,204 |
|
$ |
6,037 |
|
$ |
1,167 |
|
|
19.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share and Share Data - Fourth
Quarter |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
(amounts in millions,
except per share data) |
|
|
December 31 |
|
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
$ |
1,104 |
|
$ |
(239 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
Weighted-average shares |
|
|
|
861 |
|
|
870 |
|
|
|
|
|
Deferred
compensation obligations |
|
|
|
1 |
|
|
1 |
|
|
|
|
|
Vested
portion of restricted units |
|
|
|
5 |
|
|
5 |
|
|
|
|
|
Denominator
for basic earnings (loss) per share |
|
|
867 |
|
|
876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities: |
|
|
|
|
|
|
|
|
|
Restricted units |
|
|
|
4 |
|
|
- |
|
|
|
|
|
Stock
options |
|
|
|
1 |
|
|
- |
|
|
|
|
|
Denominator
for diluted earnings (loss) per share |
|
|
872 |
|
|
876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share |
|
|
$ |
1.27 |
|
$ |
(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share |
|
|
$ |
1.27 |
|
$ |
(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detail of shares outstanding as of December 31,
2017: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A shares |
|
|
|
172 |
|
|
|
|
|
|
Class B shares |
|
|
|
687 |
|
|
|
|
|
|
Total
shares outstanding |
|
|
|
859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Selected Financial Data - Year to
Date |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
December 31 |
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Change |
|
% Change |
|
|
(amounts in millions,
except per share data) |
|
|
|
|
|
|
|
|
|
Statement of
Income Data: |
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
40,764 |
|
|
$ |
38,301 |
|
|
$ |
2,463 |
|
|
6.4 |
% |
|
|
International Package |
|
13,338 |
|
|
|
12,350 |
|
|
|
988 |
|
|
8.0 |
% |
|
|
Supply
Chain & Freight |
|
11,770 |
|
|
|
10,255 |
|
|
|
1,515 |
|
|
14.8 |
% |
|
|
Total
revenue |
|
65,872 |
|
|
|
60,906 |
|
|
|
4,966 |
|
|
8.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
34,588 |
|
|
|
34,770 |
|
|
|
(182 |
) |
|
-0.5 |
% |
|
|
Other |
|
23,755 |
|
|
|
20,669 |
|
|
|
3,086 |
|
|
14.9 |
% |
|
|
Total
operating expenses |
|
58,343 |
|
|
|
55,439 |
|
|
|
2,904 |
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
|
4,280 |
|
|
|
3,017 |
|
|
|
1,263 |
|
|
41.9 |
% |
|
|
International Package |
|
2,464 |
|
|
|
2,044 |
|
|
|
420 |
|
|
20.5 |
% |
|
|
Supply
Chain & Freight |
|
785 |
|
|
|
406 |
|
|
|
379 |
|
|
93.3 |
% |
|
|
Total
operating profit |
|
7,529 |
|
|
|
5,467 |
|
|
|
2,062 |
|
|
37.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
Investment income and other |
|
72 |
|
|
|
50 |
|
|
|
22 |
|
|
44.0 |
% |
|
|
Interest
expense |
|
(453 |
) |
|
|
(381 |
) |
|
|
(72 |
) |
|
18.9 |
% |
|
|
Total
other income (expense) |
|
(381 |
) |
|
|
(331 |
) |
|
|
(50 |
) |
|
15.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
7,148 |
|
|
|
5,136 |
|
|
|
2,012 |
|
|
39.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
2,238 |
|
|
|
1,705 |
|
|
|
533 |
|
|
31.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
4,910 |
|
|
$ |
3,431 |
|
|
$ |
1,479 |
|
|
43.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net income as a
percentage of revenue |
|
7.5 |
% |
|
|
5.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
5.64 |
|
|
$ |
3.89 |
|
|
$ |
1.75 |
|
|
45.0 |
% |
|
|
Diluted
earnings per share |
$ |
5.61 |
|
|
$ |
3.87 |
|
|
$ |
1.74 |
|
|
45.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
871 |
|
|
|
883 |
|
|
|
(12 |
) |
|
-1.4 |
% |
|
|
Diluted |
|
875 |
|
|
|
887 |
|
|
|
(12 |
) |
|
-1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
As adjusted
income data: |
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package (1) |
$ |
4,917 |
|
|
$ |
4,925 |
|
|
$ |
(8 |
) |
|
-0.2 |
% |
|
|
International Package (1) |
|
2,499 |
|
|
|
2,469 |
|
|
|
30 |
|
|
1.2 |
% |
|
|
Supply
Chain & Freight (1) |
|
913 |
|
|
|
724 |
|
|
|
189 |
|
|
26.1 |
% |
|
|
Total
operating profit (1) |
|
8,329 |
|
|
|
8,118 |
|
|
|
211 |
|
|
2.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes (1) |
$ |
7,948 |
|
|
$ |
7,787 |
|
|
$ |
161 |
|
|
2.1 |
% |
|
|
Net income (2) |
$ |
5,259 |
|
|
$ |
5,104 |
|
|
$ |
155 |
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share (2) |
$ |
6.04 |
|
|
$ |
5.78 |
|
|
$ |
0.26 |
|
|
4.5 |
% |
|
|
Diluted earnings per
share (2) |
$ |
6.01 |
|
|
$ |
5.75 |
|
|
$ |
0.26 |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) 2017 operating profit and consolidated income before income
taxes exclude the impact of an increase in pension expense due to a
mark-to-market loss recognized outside of a 10% corridor of $800
million, allocated between the U.S. Domestic Package segment ($637
million), International Package segment ($35 million), and Supply
Chain & Freight segment ($128 million).
2016 operating profit and consolidated income before income
taxes exclude the impact of an increase in pension expense due to a
mark-to-market loss recognized outside of a 10% corridor of $2.651
billion, allocated between the U.S. Domestic Package segment
($1.908 billion), International Package segment ($425 million), and
Supply Chain & Freight segment ($318 million).
(2) 2017 net income and earnings per share amounts exclude the
after-tax impact of the adjustments described in (1), which
decreased net income by $607 million. 2017 net income also excludes
income tax benefits of $258 million attributable to the 2017 Tax
Cuts and Jobs Act.
2016 net income and earnings per share amounts exclude the
after-tax impact of the adjustments described in (1), which
decreased net income by $1.673 billion.
|
United Parcel Service, Inc. |
Selected Operating Data - Year to
Date |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
December 31 |
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
|
|
Revenue (in
millions): |
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
Next Day
Air |
$ |
7,088 |
|
$ |
6,752 |
|
$ |
336 |
|
|
5.0 |
% |
|
Deferred |
|
4,421 |
|
|
4,082 |
|
|
339 |
|
|
8.3 |
% |
|
Ground |
|
29,255 |
|
|
27,467 |
|
|
1,788 |
|
|
6.5 |
% |
|
Total
U.S. Domestic Package |
|
40,764 |
|
|
38,301 |
|
|
2,463 |
|
|
6.4 |
% |
|
International
Package: |
|
|
|
|
|
|
|
|
Domestic |
|
2,645 |
|
|
2,441 |
|
|
204 |
|
|
8.4 |
% |
|
Export |
|
10,167 |
|
|
9,374 |
|
|
793 |
|
|
8.5 |
% |
|
Cargo and
Other |
|
526 |
|
|
535 |
|
|
(9 |
) |
|
-1.7 |
% |
|
Total
International Package |
|
13,338 |
|
|
12,350 |
|
|
988 |
|
|
8.0 |
% |
|
Supply Chain &
Freight: |
|
|
|
|
|
|
|
|
Forwarding and Logistics |
|
7,981 |
|
|
6,793 |
|
|
1,188 |
|
|
17.5 |
% |
|
Freight |
|
2,998 |
|
|
2,736 |
|
|
262 |
|
|
9.6 |
% |
|
Other |
|
791 |
|
|
726 |
|
|
65 |
|
|
9.0 |
% |
|
Total
Supply Chain & Freight |
|
11,770 |
|
|
10,255 |
|
|
1,515 |
|
|
14.8 |
% |
|
Consolidated |
$ |
65,872 |
|
$ |
60,906 |
|
$ |
4,966 |
|
|
8.2 |
% |
|
|
|
|
|
|
|
|
|
|
Consolidated volume (in
millions) |
|
5,087 |
|
|
4,868 |
|
|
219 |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
Operating weekdays |
|
254 |
|
|
255 |
|
|
(1 |
) |
|
-0.4 |
% |
|
|
|
|
|
|
|
|
|
|
Average Daily Package Volume (in thousands): |
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
Next Day
Air |
|
1,460 |
|
|
1,379 |
|
|
81 |
|
|
5.9 |
% |
|
Deferred |
|
1,400 |
|
|
1,351 |
|
|
49 |
|
|
3.6 |
% |
|
Ground |
|
14,061 |
|
|
13,515 |
|
|
546 |
|
|
4.0 |
% |
|
Total
U.S. Domestic Package |
|
16,921 |
|
|
16,245 |
|
|
676 |
|
|
4.2 |
% |
|
International
Package: |
|
|
|
|
|
|
|
|
Domestic |
|
1,714 |
|
|
1,635 |
|
|
79 |
|
|
4.8 |
% |
|
Export |
|
1,395 |
|
|
1,210 |
|
|
185 |
|
|
15.3 |
% |
|
Total
International Package |
|
3,109 |
|
|
2,845 |
|
|
264 |
|
|
9.3 |
% |
|
Consolidated |
|
20,030 |
|
|
19,090 |
|
|
940 |
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
Next Day
Air |
$ |
19.11 |
|
$ |
19.20 |
|
$ |
(0.09 |
) |
|
-0.5 |
% |
|
Deferred |
|
12.43 |
|
|
11.85 |
|
|
0.58 |
|
|
4.9 |
% |
|
Ground |
|
8.19 |
|
|
7.97 |
|
|
0.22 |
|
|
2.8 |
% |
|
Total
U.S. Domestic Package |
|
9.48 |
|
|
9.25 |
|
|
0.23 |
|
|
2.5 |
% |
|
International
Package: |
|
|
|
|
|
|
|
|
Domestic |
|
6.08 |
|
|
5.85 |
|
|
0.23 |
|
|
3.9 |
% |
|
Export |
|
28.69 |
|
|
30.38 |
|
|
(1.69 |
) |
|
-5.6 |
% |
|
Total
International Package |
|
16.22 |
|
|
16.29 |
|
|
(0.07 |
) |
|
-0.4 |
% |
|
Consolidated |
$ |
10.53 |
|
$ |
10.30 |
|
$ |
0.23 |
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Supplemental Analysis of Currency and UPS
Freight |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue Per
Piece |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
Currency |
|
|
|
|
|
|
December 31 |
|
|
|
|
|
Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
$ |
6.08 |
|
$ |
5.85 |
|
|
3.9 |
% |
|
$ |
(0.03 |
) |
|
$ |
6.05 |
|
3.4 |
% |
|
|
|
Export |
|
28.69 |
|
|
30.38 |
|
|
-5.6 |
% |
|
|
0.95 |
|
|
|
29.64 |
|
-2.4 |
% |
|
|
|
Total
International Package |
$ |
16.22 |
|
$ |
16.29 |
|
|
-0.4 |
% |
|
$ |
0.41 |
|
|
$ |
16.63 |
|
2.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
$ |
10.53 |
|
$ |
10.30 |
|
|
2.2 |
% |
|
$ |
0.06 |
|
|
$ |
10.59 |
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
Currency |
|
|
|
|
|
|
December 31 |
|
|
|
|
|
Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
40,764 |
|
$ |
38,301 |
|
|
6.4 |
% |
|
$ |
- |
|
|
$ |
40,764 |
|
6.4 |
% |
|
|
|
International Package |
|
13,338 |
|
|
12,350 |
|
|
8.0 |
% |
|
|
325 |
|
|
|
13,663 |
|
10.6 |
% |
|
|
|
Supply
Chain & Freight |
|
11,770 |
|
|
10,255 |
|
|
14.8 |
% |
|
|
(10 |
) |
|
|
11,760 |
|
14.7 |
% |
|
|
|
Total
revenue |
$ |
65,872 |
|
$ |
60,906 |
|
|
8.2 |
% |
|
$ |
315 |
|
|
$ |
66,187 |
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As-Adjusted Currency Neutral Operating
Profit |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
As-Adjusted Currency |
|
|
|
|
December 31 |
|
|
|
|
|
Neutral |
|
|
|
|
2017* |
|
2016* |
|
% Change |
|
Currency |
|
2017** |
|
% Change |
|
|
|
As-Adjusted Operating profit (in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
4,917 |
|
$ |
4,925 |
|
|
-0.2 |
% |
|
$ |
- |
|
|
$ |
4,917 |
|
-0.2 |
% |
|
|
|
International Package |
|
2,499 |
|
|
2,469 |
|
|
1.2 |
% |
|
|
375 |
|
|
|
2,874 |
|
16.4 |
% |
|
|
|
Supply
Chain & Freight |
|
913 |
|
|
724 |
|
|
26.1 |
% |
|
|
2 |
|
|
|
915 |
|
26.4 |
% |
|
|
|
Total
operating profit |
$ |
8,329 |
|
$ |
8,118 |
|
|
2.6 |
% |
|
$ |
377 |
|
|
$ |
8,706 |
|
7.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for Defined Benefit Plans MTM charges |
|
|
|
|
|
|
|
|
|
|
|
|
** Amounts
adjusted for Defined Benefit Plans MTM charges and period over
period foreign currency exchange rate and hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UPS Freight Selected Operating Data - Year to
Date |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
December 31 |
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
LTL revenue (in
millions) |
$ |
2,596 |
|
$ |
2,384 |
|
$ |
212 |
|
|
|
8.9 |
% |
|
|
|
|
|
|
|
LTL revenue per LTL
hundredweight |
$ |
24.08 |
|
$ |
23.44 |
|
$ |
0.64 |
|
|
|
2.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL shipments (in
thousands) |
|
10,203 |
|
|
9,954 |
|
|
249 |
|
|
|
2.5 |
% |
|
|
|
|
|
|
|
LTL shipments per day
(in thousands) |
|
40.5 |
|
|
39.3 |
|
|
1.2 |
|
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL gross weight hauled
(in millions of pounds) |
|
10,782 |
|
|
10,167 |
|
|
615 |
|
|
|
6.0 |
% |
|
|
|
|
|
|
|
LTL weight per shipment
(in pounds) |
|
1,057 |
|
|
1,021 |
|
|
36 |
|
|
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays |
|
252 |
|
|
253 |
|
|
(1 |
) |
|
|
-0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detail of Other Operating Expenses - Year to
Date |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
Twelve Months Ended |
|
|
|
|
|
|
|
December 31 |
|
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
Repairs and
Maintenance |
$ |
1,600 |
|
$ |
1,538 |
|
$ |
62 |
|
4.0 |
% |
|
|
Depreciation and
Amortization |
|
2,282 |
|
|
2,224 |
|
|
58 |
|
2.6 |
% |
|
|
Purchased
Transportation |
|
10,989 |
|
|
9,129 |
|
|
1,860 |
|
20.4 |
% |
|
|
Fuel |
|
2,690 |
|
|
2,118 |
|
|
572 |
|
27.0 |
% |
|
|
Other Occupancy |
|
1,155 |
|
|
1,037 |
|
|
118 |
|
11.4 |
% |
|
|
Other Expenses |
|
5,039 |
|
|
4,623 |
|
|
416 |
|
9.0 |
% |
|
|
Total Other Operating
Expenses |
$ |
23,755 |
|
$ |
20,669 |
|
$ |
3,086 |
|
14.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share and Share Data - Year to
Date |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
(amounts in millions,
except per share data) |
|
|
December 31 |
|
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
Net
income |
|
|
$ |
4,910 |
|
$ |
3,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
Weighted-average shares |
|
|
|
865 |
|
|
878 |
|
|
|
|
Deferred
compensation obligations |
|
|
|
1 |
|
|
1 |
|
|
|
|
Vested
portion of restricted units |
|
|
|
5 |
|
|
4 |
|
|
|
|
Denominator for basic
earnings per share |
|
|
|
871 |
|
|
883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities: |
|
|
|
|
|
|
|
|
|
Restricted units |
|
|
|
3 |
|
|
3 |
|
|
|
|
Stock
options |
|
|
|
1 |
|
|
1 |
|
|
|
|
Denominator for diluted
earnings per share |
|
|
|
875 |
|
|
887 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
|
$ |
5.64 |
|
$ |
3.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
|
$ |
5.61 |
|
$ |
3.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Consolidated Balance Sheets - December 31,
2017 and December 31, 2016 |
(unaudited) |
|
|
|
|
|
|
|
|
|
(amounts in
millions) |
|
December 31, |
|
December 31, |
|
|
|
|
|
2017 |
|
2016 |
|
|
ASSETS |
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
|
|
Cash and marketable
securities |
|
$ |
4,069 |
|
$ |
4,567 |
|
|
|
Other current
assets |
|
|
11,479 |
|
|
9,282 |
|
|
|
Total
Current Assets |
|
|
15,548 |
|
|
13,849 |
|
|
Property,
Plant and Equipment |
|
|
48,726 |
|
|
43,674 |
|
|
|
Less accumulated
depreciation and amortization |
|
|
26,608 |
|
|
24,874 |
|
|
|
|
|
|
22,118 |
|
|
18,800 |
|
|
Other
Assets |
|
|
7,737 |
|
|
7,728 |
|
|
|
|
|
$ |
45,403 |
|
$ |
40,377 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREOWNERS' EQUITY |
|
|
|
|
|
|
Current
Liabilities |
|
$ |
12,708 |
|
$ |
11,730 |
|
|
Long-Term
Debt |
|
|
20,278 |
|
|
12,394 |
|
|
Pension and
Postretirement Benefit Obligations |
|
|
7,061 |
|
|
12,694 |
|
|
Deferred
Taxes, Credits and Other Liabilities |
|
|
4,326 |
|
|
3,130 |
|
|
Shareowners' Equity |
|
|
1,030 |
|
|
429 |
|
|
|
|
|
$ |
45,403 |
|
$ |
40,377 |
|
|
|
|
|
|
|
|
|
|
Amounts are
subject to reclassification. |
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Selected Cash Flow Data |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in Cash and Cash
Equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
|
Preliminary |
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
|
|
|
|
|
|
|
(amounts in
millions) |
|
December 31 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities |
|
$ |
1,479 |
|
|
|
|
|
|
|
|
|
Cash flows used in
investing activities |
|
|
(4,975 |
) |
|
|
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
3,287 |
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
|
53 |
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
|
$ |
(156 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow
(non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Preliminary |
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
|
|
|
|
|
|
|
(amounts in
millions) |
|
December 31 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities |
|
$ |
1,479 |
|
|
|
|
|
|
|
|
|
Capital
expenditures |
|
|
(5,227 |
) |
|
|
|
|
|
|
|
|
Proceeds from disposals
of PP&E |
|
|
24 |
|
|
|
|
|
|
|
|
|
Net change in finance
receivables |
|
|
5 |
|
|
|
|
|
|
|
|
|
Other investing
activities |
|
|
1 |
|
|
|
|
|
|
|
|
|
Free cash
flow (non-GAAP) |
|
$ |
(3,718 |
) |
|
|
|
|
|
|
|
|
Discretionary pension
contributions |
|
|
7,291 |
|
|
|
|
|
|
|
|
|
Free cash flow, excluding discretionary pension contributions
(non-GAAP) |
$ |
3,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts are subject to
reclassification. |
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Aircraft Fleet - As of December 31,
2017 |
(unaudited) |
|
|
|
|
|
|
Owned and |
Leases & Charters |
|
|
Description |
Capital Leases |
from Others |
On Order |
Under Option |
Operating: |
|
|
|
|
Boeing 757-200 |
75 |
- |
- |
- |
Boeing 767-300 |
59 |
- |
- |
- |
Boeing 767-300BCF |
2 |
- |
1 |
- |
Airbus A300-600 |
52 |
- |
- |
- |
Boeing MD-11 |
37 |
- |
- |
- |
Boeing 747-400F |
11 |
- |
- |
- |
Boeing 747-400BCF |
2 |
- |
- |
- |
Boeing 747-8F |
3 |
- |
11 |
14 |
Other |
- |
340 |
- |
- |
|
|
|
|
|
Total |
241 |
340 |
12 |
14 |
|
|
|
|
|
Contacts:
Steve Gaut, Public Relations
404-828-8787
Scott Childress, Investor Relations
404-828-7957
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