Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - Fourth Quarter
(unaudited)
|
| | | | | | | | | | | |
| | Three Months Ended | | |
| | December 31 | |
| | 2018 | 2017 | Change | % Change |
| (amounts in millions, except per share data) | | | | |
| Statement of Income Data: | | | | |
| Revenue: | | | | |
| U.S. Domestic Package | $ | 12,575 |
| $ | 11,833 |
| $ | 742 |
| 6.3 | % |
| International Package | 3,829 |
| 3,721 |
| 108 |
| 2.9 | % |
| Supply Chain & Freight | 3,444 |
| 3,421 |
| 23 |
| 0.7 | % |
| Total revenue | 19,848 |
| 18,975 |
| 873 |
| 4.6 | % |
| | | | | |
| Operating expenses: | | | | |
| Compensation and benefits | 10,151 |
| 9,545 |
| 606 |
| 6.3 | % |
| Other | 7,693 |
| 7,367 |
| 326 |
| 4.4 | % |
| Total operating expenses | 17,844 |
| 16,912 |
| 932 |
| 5.5 | % |
| | | | | |
| Operating profit: | | | | |
| U.S. Domestic Package | 999 |
| 1,087 |
| (88 | ) | (8.1 | )% |
| International Package | 781 |
| 735 |
| 46 |
| 6.3 | % |
| Supply Chain & Freight | 224 |
| 241 |
| (17 | ) | (7.1 | )% |
| Total operating profit | 2,004 |
| 2,063 |
| (59 | ) | (2.9 | )% |
| | | | | |
| Other income (expense): | | | | |
| Other pension income (expense) | (1,343 | ) | (586 | ) | (757 | ) | 129.2 | % |
| Investment income | 30 |
| 23 |
| 7 |
| 30.4 | % |
| Interest expense | (148 | ) | (129 | ) | (19 | ) | 14.7 | % |
| Total other income (expense) | (1,461 | ) | (692 | ) | (769 | ) | 111.1 | % |
| | | | | |
| Income before income taxes | 543 |
| 1,371 |
| (828 | ) | (60.4 | )% |
| | | | | |
| Income tax expense | 90 |
| 275 |
| (185 | ) | (67.3 | )% |
| | | | | |
| Net income | $ | 453 |
| $ | 1,096 |
| $ | (643 | ) | (58.7 | )% |
| | | | | |
| Net income as a percentage of revenue | 2.3 | % | 5.8 | % | | |
| | | | | |
| Per share amounts: | | | | |
| Basic earnings per share | $ | 0.52 |
| $ | 1.26 |
| $ | (0.74 | ) | (58.7 | )% |
| Diluted earnings per share | $ | 0.52 |
| $ | 1.26 |
| $ | (0.74 | ) | (58.7 | )% |
| | | | | |
| Weighted-average shares outstanding: | | | | |
| Basic | 865 |
| 867 |
| (2 | ) | (0.2 | )% |
| Diluted | 869 |
| 872 |
| (3 | ) | (0.3 | )% |
| | | | | |
| As adjusted income data: | | | | |
| Operating profit: | | | | |
| U.S. Domestic Package (1) | $ | 999 |
| $ | 1,087 |
| $ | (88 | ) | (8.1 | )% |
| International Package (1) | 781 |
| 735 |
| 46 |
| 6.3 | % |
| Supply Chain & Freight (1) | 224 |
| 241 |
| (17 | ) | (7.1 | )% |
| Total operating profit (1) | 2,004 |
| 2,063 |
| (59 | ) | (2.9 | )% |
| | | | | |
| Total other income (expense) (1) | 166 |
| 108 |
| 58 |
| 53.7 | % |
| Income before income taxes (1) | $ | 2,170 |
| $ | 2,171 |
| $ | (1 | ) | 0.0 | % |
| Net income (2) | $ | 1,690 |
| $ | 1,445 |
| $ | 245 |
| 17.0 | % |
| | | | | |
| Basic earnings per share (2) | $ | 1.95 |
| $ | 1.67 |
| $ | 0.28 |
| 16.8 | % |
| Diluted earnings per share (2) | $ | 1.94 |
| $ | 1.66 |
| $ | 0.28 |
| 16.9 | % |
(1) Fourth quarter 2018 total other income (expense) and consolidated income before income taxes excludes the impact of an increase in pension expense due to a mark-to-market loss recognized outside of a 10% corridor of $1.627 billion.
Fourth quarter 2017 total other income (expense) and consolidated income before income taxes excludes the impact of an increase in pension expense due to a mark-to-market loss recognized outside of a 10% corridor of $800 million.
(2) Fourth quarter 2018 net income and earnings per share amounts exclude the after-tax impact of the adjustment described in (1), which decreased net income by $1.237 billion.
Fourth quarter 2017 net income and earnings per share amounts exclude the after-tax impact of the adjustment 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 Job Acts.
Certain prior year amounts have been reclassified to conform to the current year presentation.
United Parcel Service, Inc.
Selected Operating Data - Fourth Quarter
(unaudited)
|
| | | | | | | | | | | |
| | Three Months Ended | | |
| | December 31 | |
| | 2018 | 2017 | Change | % Change |
| | | | | |
| Revenue (in millions): | | | | |
| U.S. Domestic Package: | | | | |
| Next Day Air | $ | 2,108 |
| $ | 1,902 |
| $ | 206 |
| 10.8 | % |
| Deferred | 1,537 |
| 1,431 |
| 106 |
| 7.4 | % |
| Ground | 8,930 |
| 8,500 |
| 430 |
| 5.1 | % |
| Total U.S. Domestic Package | 12,575 |
| 11,833 |
| 742 |
| 6.3 | % |
| International Package: | | | | |
| Domestic | 780 |
| 737 |
| 43 |
| 5.8 | % |
| Export | 2,900 |
| 2,839 |
| 61 |
| 2.1 | % |
| Cargo and Other | 149 |
| 145 |
| 4 |
| 2.8 | % |
| Total International Package | 3,829 |
| 3,721 |
| 108 |
| 2.9 | % |
| Supply Chain & Freight: | | | | |
| Forwarding | 1,644 |
| 1,627 |
| 17 |
| 1.0 | % |
| Forwarding and Logistics | 878 |
| 823 |
| 55 |
| 6.7 | % |
| Freight | 721 |
| 760 |
| (39 | ) | (5.1 | )% |
| Other | 201 |
| 211 |
| (10 | ) | (4.7 | )% |
| Total Supply Chain & Freight | 3,444 |
| 3,421 |
| 23 |
| 0.7 | % |
| Consolidated | $ | 19,848 |
| $ | 18,975 |
| $ | 873 |
| 4.6 | % |
| | | | | |
| Consolidated volume (in millions) | 1,535 |
| 1,515 |
| 20 |
| 1.3 | % |
| | | | | |
| Operating weekdays | 62 |
| 63 |
| (1 | ) | (1.6 | )% |
| | | | | |
| Average Daily Package Volume (in thousands): | | | | |
| U.S. Domestic Package: | | | | |
| Next Day Air | 1,789 |
| 1,660 |
| 129 |
| 7.8 | % |
| Deferred | 1,962 |
| 1,872 |
| 90 |
| 4.8 | % |
| Ground | 17,482 |
| 17,076 |
| 406 |
| 2.4 | % |
| Total U.S. Domestic Package | 21,233 |
| 20,608 |
| 625 |
| 3.0 | % |
| International Package: | | | | |
| Domestic | 1,912 |
| 1,853 |
| 59 |
| 3.2 | % |
| Export | 1,623 |
| 1,585 |
| 38 |
| 2.4 | % |
| Total International Package | 3,535 |
| 3,438 |
| 97 |
| 2.8 | % |
| Consolidated | 24,768 |
| 24,046 |
| 722 |
| 3.0 | % |
| | | | | |
| Average Revenue Per Piece: | | | | |
| U.S. Domestic Package: | | | | |
| Next Day Air | $ | 19.01 |
| $ | 18.18 |
| $ | 0.83 |
| 4.6 | % |
| Deferred | 12.64 |
| 12.14 |
| 0.50 |
| 4.1 | % |
| Ground | 8.24 |
| 7.90 |
| 0.34 |
| 4.3 | % |
| Total U.S. Domestic Package | 9.55 |
| 9.11 |
| 0.44 |
| 4.8 | % |
| International Package: | | | | |
| Domestic | 6.58 |
| 6.31 |
| 0.27 |
| 4.3 | % |
| Export | 28.82 |
| 28.43 |
| 0.39 |
| 1.4 | % |
| Total International Package | 16.79 |
| 16.51 |
| 0.28 |
| 1.7 | % |
| Consolidated | $ | 10.59 |
| $ | 10.17 |
| $ | 0.42 |
| 4.1 | % |
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 | | |
| | December 31 | | | | Neutral |
| | 2018 | | 2017 | | % Change | | Currency | | 2018* | | % Change |
| Average Revenue Per Piece: | | | | | | | | | | | |
| International Package: | | | | | | | | | | | |
| Domestic | $ | 6.58 |
| | $ | 6.31 |
| | 4.3 | % | | $ | 0.22 |
| | $ | 6.80 |
| | 7.8 | % |
| Export | 28.82 |
| | 28.43 |
| | 1.4 | % | | 0.63 |
| | 29.45 |
| | 3.6 | % |
| Total International Package | $ | 16.79 |
| | $ | 16.51 |
| | 1.7 | % | | $ | 0.42 |
| | $ | 17.21 |
| | 4.2 | % |
| | | | | | | | | | | | |
| Consolidated | $ | 10.59 |
| | $ | 10.17 |
| | 4.1 | % | | $ | 0.05 |
| | $ | 10.64 |
| | 4.6 | % |
| *Amounts adjusted for period over period foreign currency exchange rate and hedging differences | | | | |
| | | | | | | |
| Currency Neutral Revenue |
| (unaudited) |
| | | | | | | | | | | | |
| | Three Months Ended | | | | | | Currency | | |
| | December 31 | | | | Neutral |
| | 2018 | | 2017 | | % Change | | Currency | | 2018* | | % Change |
| Revenue (in millions): | | | | | | | | | | | |
| U.S. Domestic Package | $ | 12,575 |
| | $ | 11,833 |
| | 6.3 | % | | $ | — |
| | $ | 12,575 |
| | 6.3 | % |
| International Package | 3,829 |
| | 3,721 |
| | 2.9 | % | | 92 |
| | 3,921 |
| | 5.4 | % |
| Supply Chain & Freight | 3,444 |
| | 3,421 |
| | 0.7 | % | | 24 |
| | 3,468 |
| | 1.4 | % |
| Total revenue | $ | 19,848 |
| | $ | 18,975 |
| | 4.6 | % | | $ | 116 |
| | $ | 19,964 |
| | 5.2 | % |
| *Amounts adjusted for period over period foreign currency exchange rate and hedging differences | | | | |
| | | | | | | |
| Currency Neutral Operating Profit |
| (unaudited) |
| | Three Months Ended | | | | | | Currency |
| | December 31 | | | | | | Neutral |
| | 2018 | | 2017 | | % Change | | Currency | | 2018* | | % Change |
| Operating Profit (in millions): | | | | | | | | | | |
| U.S. Domestic Package | $ | 999 |
| | $ | 1,087 |
| | (8.1 | )% | | $ | — |
| | $ | 999 |
| | (8.1 | )% |
| International Package | 781 |
| | 735 |
| | 6.3 | % | | 26 |
| | 807 |
| | 9.8 | % |
| Supply Chain & Freight | 224 |
| | 241 |
| | (7.1 | )% | | — |
| | 224 |
| | (7.1 | )% |
| Total operating profit | $ | 2,004 |
| | $ | 2,063 |
| | (2.9 | )% | | $ | 26 |
| | $ | 2,030 |
| | (1.6 | )% |
| * Amounts adjusted for period over period foreign currency exchange rate and hedging differences |
UPS Freight Selected Operating Data - Fourth Quarter
(unaudited)
|
| | | | | | | | | | | |
| | Three Months Ended | | |
| | December 31 | | |
| | 2018 | 2017 | Change | % Change |
| LTL revenue (in millions) | $ | 584 |
| $ | 655 |
| $ | (71 | ) | (10.8 | )% |
| LTL revenue per LTL hundredweight | $ | 26.36 |
| $ | 24.65 |
| $ | 1.71 |
| 6.9 | % |
| | | | | |
| LTL shipments (in thousands) | 2,010 |
| 2,471 |
| (461 | ) | (18.7 | )% |
| LTL shipments per day (in thousands) | 32.4 |
| 40.5 |
| (8.1 | ) | (20.0 | )% |
| | | | | |
| LTL gross weight hauled (in millions of pounds) | 2,214 |
| 2,657 |
| (443 | ) | (16.7 | )% |
| LTL weight per shipment (in pounds) | 1,102 |
| 1,075 |
| 27 |
| 2.5 | % |
| | | | | |
| Operating weekdays | 62 |
| 61 |
| 1 |
| 1.6 | % |
United Parcel Service, Inc.
Detail of Other Operating Expenses - Fourth Quarter
(unaudited)
|
| | | | | | | | | | | | | | |
| | Three Months Ended | | | | |
| | December 31 | | | | |
| | 2018 | | 2017 | | Change | | % Change |
| (in millions) | | | | | | | |
| Repairs and Maintenance | $ | 438 |
| | $ | 420 |
| | $ | 18 |
| | 4.3 | % |
| Depreciation and Amortization | 545 |
| | 594 |
| | (49 | ) | | (8.2 | )% |
| Purchased Transportation | 3,839 |
| | 3,705 |
| | 134 |
| | 3.6 | % |
| Fuel | 958 |
| | 817 |
| | 141 |
| | 17.3 | % |
| Other Occupancy | 359 |
| | 310 |
| | 49 |
| | 15.8 | % |
| Other Expenses | 1,554 |
| | 1,521 |
| | 33 |
| | 2.2 | % |
| Total Other Operating Expenses | $ | 7,693 |
| | $ | 7,367 |
| | $ | 326 |
| | 4.4 | % |
Detail of Other Pension Income (Expense) - Fourth Quarter
(unaudited)
|
| | | | | | | | | | | | | | |
| | Three Months Ended | | | | |
| | December 31 | | | | |
| (in millions) | 2018 | | 2017 | | Change | | % Change |
| U.S. Domestic Package | $ | 227 |
| | $ | 164 |
| | $ | 63 |
| | 38.4 | % |
| International Package | 20 |
| | 19 |
| | 1 |
| | 5.3 | % |
| Supply Chain & Freight | 37 |
| | 31 |
| | 6 |
| | 19.4 | % |
| Total other pension income (expense) | $ | 284 |
| | $ | 214 |
| | $ | 70 |
| | 32.7 | % |
| | | | | | | | |
| Pension Mark-to-Market Loss | $ | (1,627 | ) | | $ | (800 | ) | | $ | (827 | ) | | 103.4 | % |
| Total other pension income (expense) | $ | (1,343 | ) | | $ | (586 | ) | | $ | (757 | ) | | 129.2 | % |
| | | | | | | | |
Earnings Per Share and Share Data - Fourth Quarter
(unaudited)
|
| | | | | | | |
| | Three Months Ended |
| | December 31 |
| | 2018 | | 2017 |
| (amounts in millions, except per share data) | | | |
| Numerator: | | | |
| Net income | $ | 453 |
| | $ | 1,096 |
|
| | | | |
| Denominator: | | | |
| Weighted-average shares | 859 |
| | 861 |
|
| Deferred compensation obligations | 1 |
| | 1 |
|
| Vested portion of restricted units | 5 |
| | 5 |
|
| Denominator for basic earnings per share | 865 |
| | 867 |
|
| | | | |
| Effect of dilutive securities: | | | |
| Restricted units | 4 |
| | 4 |
|
| Stock options | — |
| | 1 |
|
| Denominator for diluted earnings per share | 869 |
| | 872 |
|
| | | | |
| Basic earnings per share | $ | 0.52 |
| | $ | 1.26 |
|
| | | | |
| Diluted earnings per share | $ | 0.52 |
| | $ | 1.26 |
|
| | | | |
| | | | |
| Detail of shares outstanding as of December 31, 2018: | | | |
| | | | |
| Class A shares | 163 |
| | |
| Class B shares | 695 |
| | |
| 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)
|
| | | | | | | | | | | |
| | Twelve Months Ended | | |
| | December 31, | |
| | 2018 | 2017 | Change | % Change |
| (amounts in millions, except per share data) | | | | |
| Statement of Income Data: | | | | |
| Revenue: | | | | |
| U.S. Domestic Package | $ | 43,593 |
| $ | 40,761 |
| $ | 2,832 |
| 6.9 | % |
| International Package | 14,442 |
| 13,342 |
| 1,100 |
| 8.2 | % |
| Supply Chain & Freight | 13,826 |
| 12,482 |
| 1,344 |
| 10.8 | % |
| Total revenue | 71,861 |
| 66,585 |
| 5,276 |
| 7.9 | % |
| | | | | |
| Operating expenses: | | | | |
| Compensation and benefits | 37,235 |
| 34,577 |
| 2,658 |
| 7.7 | % |
| Other | 27,602 |
| 24,479 |
| 3,123 |
| 12.8 | % |
| Total operating expenses | 64,837 |
| 59,056 |
| 5,781 |
| 9.8 | % |
| | | | | |
| Operating profit: | | | | |
| U.S. Domestic Package | 3,643 |
| 4,303 |
| (660 | ) | (15.3 | )% |
| International Package | 2,529 |
| 2,429 |
| 100 |
| 4.1 | % |
| Supply Chain & Freight | 852 |
| 797 |
| 55 |
| 6.9 | % |
| Total operating profit | 7,024 |
| 7,529 |
| (505 | ) | (6.7 | )% |
| | | | | |
| Other income (expense): | | | | |
| Other pension income (expense) | (490 | ) | (11 | ) | (479 | ) | N/A |
|
| Investment income | 90 |
| 72 |
| 18 |
| 25.0 | % |
| Interest expense | (605 | ) | (453 | ) | (152 | ) | 33.6 | % |
| Total other income (expense) | (1,005 | ) | (392 | ) | (613 | ) | 156.4 | % |
| | | | | |
| Income before income taxes | 6,019 |
| 7,137 |
| (1,118 | ) | (15.7 | )% |
| | | | | |
| Income tax expense | 1,228 |
| 2,232 |
| (1,004 | ) | (45.0 | )% |
| | | | | |
| Net income | $ | 4,791 |
| $ | 4,905 |
| $ | (114 | ) | (2.3 | )% |
| | | | | |
| Net income as a percentage of revenue | 6.7 | % | 7.4 | % | | |
| | | | | |
| Per share amounts | | | | |
| Basic earnings per share | $ | 5.53 |
| $ | 5.63 |
| $ | (0.10 | ) | (1.8 | )% |
| Diluted earnings per share | $ | 5.51 |
| $ | 5.61 |
| $ | (0.10 | ) | (1.8 | )% |
| | | | | |
| Weighted-average shares outstanding | | | | |
| Basic | 866 |
| 871 |
| (5 | ) | (0.6 | )% |
| Diluted | 870 |
| 875 |
| (5 | ) | (0.6 | )% |
| | | | | |
| As adjusted income data: | | | | |
| Operating profit: | | | | |
| U.S. Domestic Package (1) | $ | 3,878 |
| $ | 4,303 |
| $ | (425 | ) | (9.9 | )% |
| International Package (1) | 2,605 |
| 2,429 |
| 176 |
| 7.2 | % |
| Supply Chain & Freight (1) | 901 |
| 797 |
| 104 |
| 13.0 | % |
| Total operating profit (1) | 7,384 |
| 7,529 |
| (145 | ) | (1.9 | )% |
| | | | | |
| Total other income (expense) (2) | $ | 622 |
| $ | 408 |
| $ | 214 |
| 52.5 | % |
| Income before income taxes (1) (2) | $ | 8,006 |
| $ | 7,937 |
| $ | 69 |
| 0.9 | % |
| Net income (3) | $ | 6,301 |
| $ | 5,254 |
| $ | 1,047 |
| 19.9 | % |
| | | | | |
| Basic earnings per share (3) | $ | 7.28 |
| $ | 6.03 |
| $ | 1.25 |
| 20.7 | % |
| Diluted earnings per share (3) | $ | 7.24 |
| $ | 6.00 |
| $ | 1.24 |
| 20.7 | % |
(1) 2018 operating profit and consolidated income before income taxes excludes the impact of $360 million of transformation strategy costs. 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) 2018 total other income (expense) and consolidated income before income taxes excludes the impact of an increase in pension expense due to a mark-to-market loss recognized outside of a 10% corridor of $1.627 billion.
2017 total other income (expense) and consolidated income before income taxes excludes the impact of an increase in pension expense due to a mark-to-market loss recognized outside of a 10% corridor of $800 million.
(3) 2018 net income and earnings per share amounts exclude the after-tax impact of the adjustments described in (1) and (2), which decreased net income by $1.510 billion.
2017 net income and earnings per share amounts exclude the after-tax impact of the adjustment described in (2), 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.
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)
|
| | | | | | | | | | | |
| | Twelve Months Ended | | |
| | December 31 | | |
| | 2018 | 2017 | Change | % Change |
| | | | | |
| Revenue (in millions): | | | | |
| U.S. Domestic Package: | | | | |
| Next Day Air | $ | 7,618 |
| $ | 7,088 |
| $ | 530 |
| 7.5 | % |
| Deferred | 4,752 |
| 4,422 |
| 330 |
| 7.5 | % |
| Ground | 31,223 |
| 29,251 |
| 1,972 |
| 6.7 | % |
| Total U.S. Domestic Package | 43,593 |
| 40,761 |
| 2,832 |
| 6.9 | % |
| International Package: | | | | |
| Domestic | 2,874 |
| 2,646 |
| 228 |
| 8.6 | % |
| Export | 10,973 |
| 10,170 |
| 803 |
| 7.9 | % |
| Cargo and Other | 595 |
| 526 |
| 69 |
| 13.1 | % |
| Total International Package | 14,442 |
| 13,342 |
| 1,100 |
| 8.2 | % |
| Supply Chain & Freight: | | | | |
| Forwarding | 6,580 |
| 5,674 |
| 906 |
| 16.0 | % |
| Logistics | 3,234 |
| 3,017 |
| 217 |
| 7.2 | % |
| Freight | 3,218 |
| 3,000 |
| 218 |
| 7.3 | % |
| Other | 794 |
| 791 |
| 3 |
| 0.4 | % |
| Total Supply Chain & Freight | 13,826 |
| 12,482 |
| 1,344 |
| 10.8 | % |
| Consolidated | $ | 71,861 |
| $ | 66,585 |
| $ | 5,276 |
| 7.9 | % |
| | | | | |
| Consolidated volume (in millions) | 5,231 |
| 5,088 |
| 143 |
| 2.8 | % |
| | | | | |
| Operating weekdays | 253 |
| 254 |
| (1 | ) | (0.4 | )% |
| | | | | |
| Average Daily Package Volume (in thousands): | | | | |
| U.S. Domestic Package: | | | | |
| Next Day Air | 1,542 |
| 1,460 |
| 82 |
| 5.6 | % |
| Deferred | 1,432 |
| 1,400 |
| 32 |
| 2.3 | % |
| Ground | 14,498 |
| 14,060 |
| 438 |
| 3.1 | % |
| Total U.S. Domestic Package | 17,472 |
| 16,920 |
| 552 |
| 3.3 | % |
| International Package: | | | | |
| Domestic | 1,723 |
| 1,715 |
| 8 |
| 0.5 | % |
| Export | 1,482 |
| 1,395 |
| 87 |
| 6.2 | % |
| Total International Package | 3,205 |
| 3,110 |
| 95 |
| 3.1 | % |
| Consolidated | 20,677 |
| 20,030 |
| 647 |
| 3.2 | % |
| | | | | |
| Average Revenue Per Piece: | | | | |
| U.S. Domestic Package: | | | | |
| Next Day Air | $ | 19.53 |
| $ | 19.11 |
| $ | 0.42 |
| 2.2 | % |
| Deferred | 13.12 |
| 12.44 |
| 0.68 |
| 5.5 | % |
| Ground | 8.51 |
| 8.19 |
| 0.32 |
| 3.9 | % |
| Total U.S. Domestic Package | 9.86 |
| 9.48 |
| 0.38 |
| 4.0 | % |
| International Package: | | | | |
| Domestic | 6.59 |
| 6.07 |
| 0.52 |
| 8.6 | % |
| Export | 29.27 |
| 28.70 |
| 0.57 |
| 2.0 | % |
| Total International Package | 17.08 |
| 16.22 |
| 0.86 |
| 5.3 | % |
| Consolidated | $ | 10.98 |
| $ | 10.53 |
| $ | 0.45 |
| 4.3 | % |
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) |
| | | | | | | | | | | | |
| | Twelve Months Ended | | | | | | Currency | | |
| | December 31 | | | | Neutral |
| | 2018 | | 2017 | | % Change | | Currency | | 2018* | | % Change |
| Average Revenue Per Piece: | | | | | | | | | | | |
| International Package: | | | | | | | | | | | |
| Domestic | $ | 6.59 |
| | $ | 6.07 |
| | 8.6 | % | | $ | (0.19 | ) | | $ | 6.40 |
| | 5.4 | % |
| Export | 29.27 |
| | 28.70 |
| | 2.0 | % | | (0.16 | ) | | 29.11 |
| | 1.4 | % |
| Total International Package | $ | 17.08 |
| | $ | 16.22 |
| | 5.3 | % | | $ | (0.18 | ) | | $ | 16.90 |
| | 4.2 | % |
| | | | | | | | | | | | |
| Consolidated | $ | 10.98 |
| | $ | 10.53 |
| | 4.3 | % | | $ | (0.03 | ) | | $ | 10.95 |
| | 4.0 | % |
| *Amounts adjusted for period over period foreign currency exchange rate and hedging differences | | | | |
| | | | | | | |
| Currency Neutral Revenue |
| (unaudited) |
| | | | | | | | | | | | |
| | Twelve Months Ended | | | | | | Currency | | |
| | December 31 | | | | Neutral |
| | 2018 | | 2017 | | % Change | | Currency | | 2018* | | % Change |
| Revenue (in millions): | | | | | | | | | | | |
| U.S. Domestic Package | $ | 43,593 |
| | $ | 40,761 |
| | 6.9 | % | | $ | — |
| | $ | 43,593 |
| | 6.9 | % |
| International Package | 14,442 |
| | 13,342 |
| | 8.2 | % | | (147 | ) | | $ | 14,295 |
| | 7.1 | % |
| Supply Chain & Freight | 13,826 |
| | 12,482 |
| | 10.8 | % | | (39 | ) | | 13,787 |
| | 10.5 | % |
| Total revenue | $ | 71,861 |
| | $ | 66,585 |
| | 7.9 | % | | $ | (186 | ) | | $ | 71,675 |
| | 7.6 | % |
| *Amounts adjusted for period over period foreign currency exchange rate and hedging differences | | | | |
| | | | | | | |
| Currency Neutral Operating Profit |
| (unaudited) |
| | | | | | | | | | | | |
| | Tweleve Months Ended | | | | | | Currency |
| | December 31 | | | | | | Neutral |
| | 2018* | | 2017 | | % Change | | Currency | | 2018** | | % Change |
| As-Adjusted Operating Profit (in millions): | | | | | | | | | | |
| U.S. Domestic Package | $ | 3,878 |
| | $ | 4,303 |
| | (9.9 | )% | | $ | — |
| | $ | 3,878 |
| | (9.9 | )% |
| International Package | 2,605 |
| | 2,429 |
| | 7.2 | % | | 10 |
| | 2,615 |
| | 7.7 | % |
| Supply Chain & Freight | 901 |
| | 797 |
| | 13.0 | % | | 5 |
| | 906 |
| | 13.7 | % |
| Total operating profit | $ | 7,384 |
| | $ | 7,529 |
| | (1.9 | )% | | $ | 15 |
| | $ | 7,399 |
| | (1.7 | )% |
| * 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)
|
| | | | | | | | | | | |
| | Tweleve Months Ended | | |
| | December 31 | | |
| | 2018 | 2017 | Change | % Change |
| LTL revenue (in millions) | $ | 2,706 |
| $ | 2,598 |
| $ | 108 |
| 4.2 | % |
| LTL revenue per LTL hundredweight | $ | 25.52 |
| $ | 24.08 |
| $ | 1.44 |
| 6.0 | % |
| | | | | |
| LTL shipments (in thousands) | 9,720 |
| 10,210 |
| (490 | ) | (4.8 | )% |
| LTL shipments per day (in thousands) | 38.4 |
| 40.5 |
| (2.1 | ) | (5.2 | )% |
| | | | | |
| LTL gross weight hauled (in millions of pounds) | 10,605 |
| 10,788 |
| (183 | ) | (1.7 | )% |
| LTL weight per shipment (in pounds) | 1,091 |
| 1,057 |
| 34 |
| 3.2 | % |
| | | | | |
| Operating weekdays | 253 |
| 252 |
| 1 |
| 0.4 | % |
Certain prior year amounts have been reclassified to conform to the current year presentation.
United Parcel Service, Inc.
Detail of Other Operating Expenses - Year to Date
(unaudited)
|
| | | | | | | | | | | | | | |
| | Twelve Months Ended | | | | |
| | December 31 | | | | |
| | 2018 | | 2017 | | Change | | % Change |
| (in millions) | | | | | | | |
| Repairs and Maintenance | $ | 1,732 |
| | $ | 1,601 |
| | $ | 131 |
| | 8.2 | % |
| Depreciation and Amortization | 2,207 |
| | 2,282 |
| | (75 | ) | | (3.3 | )% |
| Purchased Transportation | 13,409 |
| | 11,696 |
| | 1,713 |
| | 14.6 | % |
| Fuel | 3,427 |
| | 2,690 |
| | 737 |
| | 27.4 | % |
| Other Occupancy | 1,362 |
| | 1,155 |
| | 207 |
| | 17.9 | % |
| Other Expenses | 5,465 |
| | 5,055 |
| | 410 |
| | 8.1 | % |
| Total Other Operating Expenses | 27,602 |
| | 24,479 |
| | 3,123 |
| | 12.8 | % |
Detail of Other Pension Income (Expense) - Year to Date
(unaudited)
|
| | | | | | | | | | | | | | |
| | Twelve Months Ended | | | | |
| | December 31 | | | | |
| (in millions) | 2018 | | 2017 | | Change | | % Change |
| U.S. Domestic Package | $ | 908 |
| | $ | 605 |
| | $ | 303 |
| | 50.1 | % |
| International Package | 80 |
| | 66 |
| | 14 |
| | 21.2 | % |
| Supply Chain & Freight | 149 |
| | 118 |
| | 31 |
| | 26.3 | % |
| Total other pension income (expense) | $ | 1,137 |
| | $ | 789 |
| | $ | 348 |
| | 44.1 | % |
| | | | | | | | |
| Pension Mark-to-Market Loss | $ | (1,627 | ) | | $ | (800 | ) | | $ | (827 | ) | | 103.4 | % |
| Total other pension income (expense) | $ | (490 | ) | | $ | (11 | ) | | $ | (479 | ) | | N/A |
|
Earnings Per Share and Share Data - Year to Date
(unaudited)
|
| | | | | | | |
| | Twelve Months Ended |
| | December 31 |
| | 2018 | | 2017 |
| (amounts in millions, except per share data) | | | |
| Numerator: | | | |
| Net income | $ | 4,791 |
| | $ | 4,905 |
|
| | | | |
| Denominator: | | | |
| Weighted-average shares | 860 |
| | 865 |
|
| Deferred compensation obligations | 1 |
| | 1 |
|
| Vested portion of restricted units | 5 |
| | 5 |
|
| Denominator for basic earnings per share | 866 |
| | 872 |
|
| | | | |
| Effect of dilutive securities: | | | |
| Restricted units | 4 |
| | 3 |
|
| Stock options | — |
| | 1 |
|
| Denominator for diluted earnings per share | 870 |
| | 875 |
|
| | | | |
| Basic earnings per share | $ | 5.53 |
| | $ | 5.63 |
|
| | | | |
| Diluted earnings per share | $ | 5.51 |
| | $ | 5.61 |
|
Certain prior year amounts have been reclassified to conform to the current year presentation
United Parcel Service, Inc.
Consolidated Balance Sheets - December 31, 2018 and December 31, 2017
(unaudited)
|
| | | | | | | |
| | December 31, 2018 | | December 31, 2017 |
| (amounts in millions) | | | |
| | | | |
| ASSETS | | | |
| Current Assets: | | | |
| Cash and marketable securities | $ | 5,035 |
| | $ | 4,069 |
|
| Other current assets | 10,696 |
| | 11,649 |
|
| Total Current Assets | 15,731 |
| | 15,718 |
|
| Property, Plant and Equipment | 54,488 |
| | 48,726 |
|
| Less accumulated depreciation and amortization | 27,912 |
| | 26,608 |
|
| | 26,576 |
| | 22,118 |
|
| Other Assets | 7,282 |
| | 7,738 |
|
| | $ | 49,589 |
| | $ | 45,574 |
|
| | | | |
| | | | |
| LIABILITIES AND SHAREOWNERS' EQUITY | | | |
| Current Liabilities | $ | 14,087 |
| | $ | 12,886 |
|
| Long-Term Debt | 19,931 |
| | 20,278 |
|
| Pension and Postretirement Benefit Obligations | 8,347 |
| | 7,061 |
|
| Deferred Taxes, Credits and Other Liabilities | 4,187 |
| | 4,325 |
|
| Shareowners' Equity | 3,037 |
| | 1,024 |
|
| | $ | 49,589 |
| | $ | 45,574 |
|
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) | | December 31 |
| Cash flows from operating activities | | $ | 12,711 |
|
| Cash flows used in investing activities | | (6,330 | ) |
| Cash flows used in financing activities | | (5,692 | ) |
| | | |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | | (91 | ) |
| Net increase in cash, cash equivalents and restricted cash | | $ | 598 |
|
| | | |
| Reconciliation of Adjusted Capital Expenditures and Free Cash Flow (non-GAAP measures) |
| | | Preliminary |
| | | Year-to-Date |
| (amounts in millions) | | December 31 |
| Cash flows from operating activities | | $ | 12,711 |
|
| Capital expenditures | | (6,283 | ) |
| Principal repayments of capital lease obligations | | (340 | ) |
| Adjusted Capital Expenditures (non-GAAP measure) | | $ | (6,623 | ) |
| Proceed from disposal of PP&E | | 37 |
|
| Net change in finance receivables | | 4 |
|
| Other investing activities | | 1 |
|
| Adjusted Free cash flow (non-GAAP measure) | | $ | 6,130 |
|
Amounts are subject to reclassification.
United Parcel Service, Inc.
Aircraft Fleet - as of December 31, 2018
(unaudited)
|
| | | | | | | | |
| Description | Owned and Capital Leases | Leases & Charters from Others | On Order | Under Option |
| Operating: | | | | |
| Boeing 757-200 | 75 |
| — |
| — |
| — |
|
| Boeing 767-200 | — |
| 2 |
| — |
| — |
|
| Boeing 767-300 | 59 |
| — |
| 9 |
| — |
|
| Boeing 767-300BCF | 3 |
| — |
| — |
| — |
|
| Airbus A300-600 | 52 |
| — |
| — |
| — |
|
| Boeing MD-11 | 37 |
| 5 |
| — |
| — |
|
| Boeing 747-400F | 11 |
| — |
| — |
| — |
|
| Boeing 747-400BCF | 2 |
| — |
| — |
| — |
|
| Boeing 747-8F | 9 |
| — |
| 19 |
| — |
|
| Other | — |
| 309 |
| — |
| — |
|
| | | | | |
| Total | 248 |
| 316 |
| 28 |
| — |
|
