United States
Securities and Exchange
Commission
Washington, D.C. 20549
Form 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended September 30, 2003, or |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to |
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Commission file number 001-15451
United Parcel Service, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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58-2480149 |
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(State or Other Jurisdiction of Incorporation |
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(IRS Employer Identification No.) |
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or Organization) |
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55 Glenlake Parkway, NE Atlanta, Georgia |
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30328 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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(404) 828-6000 |
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(Registrant’s telephone number, including area code) |
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Former name, former address and former fiscal year, if changed since last report.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes ý No o
There were 577,582,053 Class A shares, and 546,661,228 Class B shares, with a par value of $0.01 per share, outstanding at November 10, 2003.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2003 (unaudited) and December 31, 2002
(In millions, except per share amounts)
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September
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December
31, |
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Assets |
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Current Assets: |
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Cash & cash equivalents |
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$ |
3,108 |
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$ |
2,211 |
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Marketable securities & short-term investments |
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1,028 |
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803 |
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Accounts receivable, net |
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3,741 |
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3,756 |
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Finance receivables, net |
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855 |
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868 |
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Deferred income taxes |
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383 |
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268 |
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Other current assets |
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863 |
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832 |
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Total Current Assets |
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9,978 |
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8,738 |
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Property, Plant & Equipment - at cost, net of accumulated depreciation & amortization of $12,648 and $11,749 in 2003 and 2002 |
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13,931 |
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13,612 |
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Prepaid Pension Costs |
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2,207 |
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1,932 |
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Other Assets |
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2,257 |
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2,075 |
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$ |
28,373 |
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$ |
26,357 |
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Liabilities & Shareowners’ Equity |
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Current Liabilities: |
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Current maturities of long-term debt and commerical paper |
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$ |
645 |
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$ |
1,107 |
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Accounts payable |
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2,118 |
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1,908 |
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Accrued wages & withholdings |
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1,714 |
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1,084 |
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Income taxes payable |
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357 |
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19 |
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Dividends payable |
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— |
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212 |
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Other current liabilities |
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1,229 |
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1,225 |
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Total Current Liabilities |
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6,063 |
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5,555 |
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Long-Term Debt |
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3,425 |
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3,495 |
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Accumulated Postretirement Benefit Obligation, Net |
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1,311 |
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1,251 |
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Deferred Taxes, Credits & Other Liabilities |
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3,843 |
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3,601 |
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Shareowners’ Equity: |
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Preferred stock, no par value, authorized 200 shares, none issued |
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— |
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— |
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Class A common stock, par value $.01 per share, authorized 4,600 shares, issued 587 and 642 in 2003 and 2002 |
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6 |
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7 |
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Class B common stock, par value $.01 per share, authorized 5,600 shares, issued 539 and 482 in 2003 and 2002 |
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5 |
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4 |
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Additional paid-in capital |
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242 |
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387 |
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Retained earnings |
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13,783 |
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12,495 |
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Accumulated other comprehensive loss |
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(305 |
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(438 |
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Deferred compensation arrangements |
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135 |
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84 |
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13,866 |
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12,539 |
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Less: Treasury stock (2 and 1 shares in 2003 and 2002) |
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(135 |
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(84 |
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13,731 |
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12,455 |
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$ |
28,373 |
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$ |
26,357 |
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See notes to unaudited consolidated financial statements.
2
UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME
Three and Nine Months Ended September 30, 2003 and 2002
(In millions, except per share amounts)
(unaudited)
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Three
Months Ended |
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Nine
Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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Revenue |
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$ |
8,312 |
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$ |
7,754 |
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$ |
24,553 |
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$ |
23,015 |
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Operating Expenses: |
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Compensation and benefits |
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4,830 |
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4,520 |
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14,292 |
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13,400 |
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Other |
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2,335 |
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2,284 |
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7,089 |
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6,690 |
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7,165 |
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6,804 |
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21,381 |
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20,090 |
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Operating Profit |
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1,147 |
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950 |
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3,172 |
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2,925 |
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Other Income and (Expense): |
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Investment income (loss) |
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23 |
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20 |
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(5 |
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44 |
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Interest expense |
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(31 |
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(30 |
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(94 |
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(121 |
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(8 |
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(10 |
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(99 |
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(77 |
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Income before Income Taxes and Cumulative Effect of Change in Accounting Principle |
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1,139 |
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940 |
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3,073 |
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2,848 |
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Income Taxes |
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400 |
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362 |
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1,031 |
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1,096 |
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Income before Cumulative Effect of Change in Accounting Principle |
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739 |
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578 |
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2,042 |
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1,752 |
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Cumulative Effect of Change in the Method of Accounting for Goodwill, Net of Taxes |
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(72 |
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