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EX-99.1 - EX-99.1 - PRESS RELEASE THIRD QUARTER EARNINGS - UNITED PARCEL SERVICE INC | exhibit991-q32020earni.htm |
8-K - 8-K - UNITED PARCEL SERVICE INC | ups-20201028.htm |
Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - Third Quarter
(unaudited)
Three Months Ended | ||||||||||||||
September 30 | ||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||
(amounts in millions, except per share data) | ||||||||||||||
Statement of Income Data: | ||||||||||||||
Revenue: | ||||||||||||||
U.S. Domestic Package | $ | 13,225 | $ | 11,455 | $ | 1,770 | 15.5 | % | ||||||
International Package | 4,087 | 3,494 | 593 | 17.0 | % | |||||||||
Supply Chain & Freight | 3,926 | 3,369 | 557 | 16.5 | % | |||||||||
Total revenue | 21,238 | 18,318 | 2,920 | 15.9 | % | |||||||||
Operating expenses: | ||||||||||||||
Compensation and benefits | 11,077 | 9,590 | 1,487 | 15.5 | % | |||||||||
Other | 7,798 | 6,600 | 1,198 | 18.2 | % | |||||||||
Total operating expenses | 18,875 | 16,190 | 2,685 | 16.6 | % | |||||||||
Operating profit: | ||||||||||||||
U.S. Domestic Package | 1,098 | 1,216 | (118) | (9.7) | % | |||||||||
International Package | 966 | 667 | 299 | 44.8 | % | |||||||||
Supply Chain & Freight | 299 | 245 | 54 | 22.0 | % | |||||||||
Total operating profit | 2,363 | 2,128 | 235 | 11.0 | % | |||||||||
Other income (expense): | ||||||||||||||
Other pension income (expense) | 327 | 191 | 136 | 71.2 | % | |||||||||
Investment income and other | 11 | 46 | (35) | (76.1) | % | |||||||||
Interest expense | (176) | (159) | (17) | 10.7 | % | |||||||||
Total other income (expense) | 162 | 78 | 84 | 107.7 | % | |||||||||
Income before income taxes | 2,525 | 2,206 | 319 | 14.5 | % | |||||||||
Income tax expense (benefit) | 568 | 456 | 112 | 24.6 | % | |||||||||
Net income | $ | 1,957 | $ | 1,750 | $ | 207 | 11.8 | % | ||||||
Net income as a percentage of revenue | 9.2 | % | 9.6 | % | ||||||||||
Per share amounts: | ||||||||||||||
Basic earnings per share | $ | 2.25 | $ | 2.03 | $ | 0.22 | 10.8 | % | ||||||
Diluted earnings per share | $ | 2.24 | $ | 2.01 | $ | 0.23 | 11.4 | % | ||||||
Weighted-average shares outstanding: | ||||||||||||||
Basic | 868 | 864 | 4 | 0.5 | % | |||||||||
Diluted | 872 | 870 | 2 | 0.2 | % | |||||||||
As adjusted income data (1): | ||||||||||||||
Operating profit: | ||||||||||||||
U.S. Domestic Package | $ | 1,133 | $ | 1,242 | $ | (109) | (8.8) | % | ||||||
International Package | 972 | 693 | 279 | 40.3 | % | |||||||||
Supply Chain & Freight | 302 | 256 | 46 | 18.0 | % | |||||||||
Total operating profit | 2,407 | 2,191 | 216 | 9.9 | % | |||||||||
Income before income taxes | $ | 2,569 | $ | 2,269 | $ | 300 | 13.2 | % | ||||||
Net income | $ | 1,990 | $ | 1,797 | $ | 193 | 10.7 | % | ||||||
Basic earnings per share | $ | 2.29 | $ | 2.08 | $ | 0.21 | 10.1 | % | ||||||
Diluted earnings per share | $ | 2.28 | $ | 2.07 | $ | 0.21 | 10.1 | % |
(1) See Non-GAAP Schedules for detail of Transformation costs.
Certain prior year amounts have been reclassified to conform to the current year presentation.
United Parcel Service, Inc.
Selected Operating Data - Third Quarter
(unaudited)
Three Months Ended | ||||||||||||||
September 30 | ||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||
Revenue (in millions): | ||||||||||||||
U.S. Domestic Package: | ||||||||||||||
Next Day Air | $ | 2,098 | $ | 2,146 | $ | (48) | (2.2) | % | ||||||
Deferred | 1,378 | 1,248 | 130 | 10.4 | % | |||||||||
Ground | 9,749 | 8,061 | 1,688 | 20.9 | % | |||||||||
Total U.S. Domestic Package | 13,225 | 11,455 | 1,770 | 15.5 | % | |||||||||
International Package: | ||||||||||||||
Domestic | 776 | 689 | 87 | 12.6 | % | |||||||||
Export | 3,153 | 2,673 | 480 | 18.0 | % | |||||||||
Cargo and Other | 158 | 132 | 26 | 19.7 | % | |||||||||
Total International Package | 4,087 | 3,494 | 593 | 17.0 | % | |||||||||
Supply Chain & Freight: | ||||||||||||||
Forwarding | 1,753 | 1,472 | 281 | 19.1 | % | |||||||||
Logistics | 1,040 | 846 | 194 | 22.9 | % | |||||||||
Freight | 870 | 852 | 18 | 2.1 | % | |||||||||
Other | 263 | 199 | 64 | 32.2 | % | |||||||||
Total Supply Chain & Freight | 3,926 | 3,369 | 557 | 16.5 | % | |||||||||
Consolidated | $ | 21,238 | $ | 18,318 | $ | 2,920 | 15.9 | % | ||||||
Consolidated volume (in millions) | 1,550 | 1,345 | 205 | 15.2 | % | |||||||||
Operating weekdays | 65 | 64 | 1 | 1.6 | % | |||||||||
Average Daily Package Volume (in thousands): | ||||||||||||||
U.S. Domestic Package: | ||||||||||||||
Next Day Air | 1,915 | 1,891 | 24 | 1.3 | % | |||||||||
Deferred | 1,657 | 1,474 | 183 | 12.4 | % | |||||||||
Ground | 16,803 | 14,544 | 2,259 | 15.5 | % | |||||||||
Total U.S. Domestic Package | 20,375 | 17,909 | 2,466 | 13.8 | % | |||||||||
International Package: | ||||||||||||||
Domestic | 1,806 | 1,668 | 138 | 8.3 | % | |||||||||
Export | 1,674 | 1,437 | 237 | 16.5 | % | |||||||||
Total International Package | 3,480 | 3,105 | 375 | 12.1 | % | |||||||||
Consolidated | 23,855 | 21,014 | 2,841 | 13.5 | % | |||||||||
Average Revenue Per Piece: | ||||||||||||||
U.S. Domestic Package: | ||||||||||||||
Next Day Air | $ | 16.85 | $ | 17.73 | $ | (0.88) | (5.0) | % | ||||||
Deferred | 12.79 | 13.23 | (0.44) | (3.3) | % | |||||||||
Ground | 8.93 | 8.66 | 0.27 | 3.1 | % | |||||||||
Total U.S. Domestic Package | 9.99 | 9.99 | — | — | % | |||||||||
International Package: | ||||||||||||||
Domestic | 6.61 | 6.45 | 0.16 | 2.5 | % | |||||||||
Export | 28.98 | 29.06 | (0.08) | (0.3) | % | |||||||||
Total International Package | 17.37 | 16.92 | 0.45 | 2.7 | % | |||||||||
Consolidated | $ | 11.06 | $ | 11.02 | $ | 0.04 | 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 - Third Quarter
(unaudited)
Three Months Ended | |||||||||||||||||||||||
September 30 | |||||||||||||||||||||||
2020 | 2019 | Change | % Change | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Repairs and maintenance | $ | 576 | $ | 485 | $ | 91 | 18.8 | % | |||||||||||||||
Depreciation and amortization | 677 | 587 | 90 | 15.3 | % | ||||||||||||||||||
Purchased transportation | 3,937 | 2,984 | 953 | 31.9 | % | ||||||||||||||||||
Fuel | 618 | 824 | (206) | (25.0) | % | ||||||||||||||||||
Other occupancy | 376 | 346 | 30 | 8.7 | % | ||||||||||||||||||
Other expenses | 1,614 | 1,374 | 240 | 17.5 | % | ||||||||||||||||||
Total other operating expenses | $ | 7,798 | $ | 6,600 | $ | 1,198 | 18.2 | % |
Earnings Per Share and Share Data - Third Quarter
(unaudited)
Three Months Ended | |||||||||||
September 30 | |||||||||||
2020 | 2019 | ||||||||||
(amounts in millions, except per share data) | |||||||||||
Numerator: | |||||||||||
Net income | $ | 1,957 | $ | 1,750 | |||||||
Denominator: | |||||||||||
Weighted-average shares | 864 | 858 | |||||||||
Deferred compensation obligations | — | — | |||||||||
Vested portion of restricted units | 4 | 6 | |||||||||
Denominator for basic earnings per share | 868 | 864 | |||||||||
Effect of dilutive securities: | |||||||||||
Restricted units | 4 | 6 | |||||||||
Stock options | — | — | |||||||||
Denominator for diluted earnings per share | 872 | 870 | |||||||||
Basic earnings per share | $ | 2.25 | $ | 2.03 | |||||||
Diluted earnings per share | $ | 2.24 | $ | 2.01 | |||||||
Detail of shares outstanding as of September 30, 2020: | |||||||||||
Class A shares | 150 | ||||||||||
Class B shares | 714 | ||||||||||
Total shares outstanding | 864 |
Certain prior year amounts have been reclassified to conform to the current year presentation.
United Parcel Service, Inc.
Selected Financial Data - Year to Date
(unaudited)
Nine Months Ended | ||||||||||||||
September 30 | ||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||
(amounts in millions, except per share data) | ||||||||||||||
Statement of Income Data: | ||||||||||||||
Revenue: | ||||||||||||||
U.S. Domestic Package | $ | 37,755 | $ | 33,085 | $ | 4,670 | 14.1 | % | ||||||
International Package | 11,175 | 10,458 | 717 | 6.9 | % | |||||||||
Supply Chain & Freight | 10,802 | 9,983 | 819 | 8.2 | % | |||||||||
Total revenue | 59,732 | 53,526 | 6,206 | 11.6 | % | |||||||||
Operating expenses: | ||||||||||||||
Compensation and benefits | 32,006 | 28,206 | 3,800 | 13.5 | % | |||||||||
Other | 22,079 | 19,655 | 2,424 | 12.3 | % | |||||||||
Total operating expenses | 54,085 | 47,861 | 6,224 | 13.0 | % | |||||||||
Operating profit: | ||||||||||||||
U.S. Domestic Package | 2,644 | 3,090 | (446) | (14.4) | % | |||||||||
International Package | 2,288 | 1,858 | 430 | 23.1 | % | |||||||||
Supply Chain & Freight | 715 | 717 | (2) | (0.3) | % | |||||||||
Total operating profit | 5,647 | 5,665 | (18) | (0.3) | % | |||||||||
Other income (expense): | ||||||||||||||
Other pension income (expense) | 981 | 574 | 407 | 70.9 | % | |||||||||
Investment income and other | 30 | 98 | (68) | (69.4) | % | |||||||||
Interest expense | (526) | (487) | (39) | 8.0 | % | |||||||||
Total other income (expense) | 485 | 185 | 300 | 162.2 | % | |||||||||
Income before income taxes | 6,132 | 5,850 | 282 | 4.8 | % | |||||||||
Income tax expense (benefit) | 1,442 | 1,304 | 138 | 10.6 | % | |||||||||
Net income | $ | 4,690 | $ | 4,546 | $ | 144 | 3.2 | % | ||||||
Net income as a percentage of revenue | 7.9 | % | 8.5 | % | ||||||||||
Per share amounts: | ||||||||||||||
Basic earnings per share | $ | 5.42 | $ | 5.26 | $ | 0.16 | 3.0 | % | ||||||
Diluted earnings per share | $ | 5.39 | $ | 5.23 | $ | 0.16 | 3.1 | % | ||||||
Weighted-average shares outstanding: | ||||||||||||||
Basic | 866 | 865 | 1 | 0.1 | % | |||||||||
Diluted | 870 | 869 | 1 | 0.1 | % | |||||||||
As adjusted income data(1): | ||||||||||||||
Operating profit: | ||||||||||||||
U.S. Domestic Package | $ | 2,749 | $ | 3,162 | $ | (413) | (13.1) | % | ||||||
International Package | 2,372 | 1,970 | 402 | 20.4 | % | |||||||||
Supply Chain & Freight | 727 | 740 | (13) | (1.8) | % | |||||||||
Total operating profit | 5,848 | 5,872 | (24) | (0.4) | % | |||||||||
Income before income taxes | $ | 6,333 | $ | 6,057 | $ | 276 | 4.6 | % | ||||||
Net income | $ | 4,841 | $ | 4,703 | $ | 138 | 2.9 | % | ||||||
Basic earnings per share | $ | 5.59 | $ | 5.44 | $ | 0.15 | 2.8 | % | ||||||
Diluted earnings per share | $ | 5.56 | $ | 5.41 | $ | 0.15 | 2.8 | % |
(1) See Non-GAAP Schedules for detail of Transformation costs.
Certain prior year amounts have been reclassified to conform to the current year presentation.
United Parcel Service, Inc.
Selected Operating Data - Year to Date
(unaudited)
Nine Months Ended | ||||||||||||||
September 30 | ||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||
Revenue (in millions): | ||||||||||||||
U.S. Domestic Package: | ||||||||||||||
Next Day Air | $ | 6,137 | $ | 6,160 | $ | (23) | (0.4) | % | ||||||
Deferred | 3,873 | 3,494 | 379 | 10.8 | % | |||||||||
Ground | 27,745 | 23,431 | 4,314 | 18.4 | % | |||||||||
Total U.S. Domestic Package | 37,755 | 33,085 | 4,670 | 14.1 | % | |||||||||
International Package: | ||||||||||||||
Domestic | 2,183 | 2,069 | 114 | 5.5 | % | |||||||||
Export | 8,538 | 7,972 | 566 | 7.1 | % | |||||||||
Cargo and Other | 454 | 417 | 37 | 8.9 | % | |||||||||
Total International Package | 11,175 | 10,458 | 717 | 6.9 | % | |||||||||
Supply Chain & Freight: | ||||||||||||||
Forwarding | 4,897 | 4,384 | 513 | 11.7 | % | |||||||||
Logistics | 2,862 | 2,511 | 351 | 14.0 | % | |||||||||
Freight | 2,360 | 2,486 | (126) | (5.1) | % | |||||||||
Other | 683 | 602 | 81 | 13.5 | % | |||||||||
Total Supply Chain & Freight | 10,802 | 9,983 | 819 | 8.2 | % | |||||||||
Consolidated | $ | 59,732 | $ | 53,526 | $ | 6,206 | 11.6 | % | ||||||
Consolidated volume (in millions) | 4,466 | 3,885 | 581 | 15.0 | % | |||||||||
Operating weekdays | 193 | 191 | 2 | 1.0 | % | |||||||||
Average Daily Package Volume (in thousands): | ||||||||||||||
U.S. Domestic Package: | ||||||||||||||
Next Day Air | 1,888 | 1,771 | 117 | 6.6 | % | |||||||||
Deferred | 1,617 | 1,413 | 204 | 14.4 | % | |||||||||
Ground | 16,346 | 14,068 | 2,278 | 16.2 | % | |||||||||
Total U.S. Domestic Package | 19,851 | 17,252 | 2,599 | 15.1 | % | |||||||||
International Package: | ||||||||||||||
Domestic | 1,746 | 1,661 | 85 | 5.1 | % | |||||||||
Export | 1,545 | 1,425 | 120 | 8.4 | % | |||||||||
Total International Package | 3,291 | 3,086 | 205 | 6.6 | % | |||||||||
Consolidated | 23,142 | 20,338 | 2,804 | 13.8 | % | |||||||||
Average Revenue Per Piece: | ||||||||||||||
U.S. Domestic Package: | ||||||||||||||
Next Day Air | $ | 16.84 | $ | 18.21 | $ | (1.37) | (7.5) | % | ||||||
Deferred | 12.41 | 12.95 | (0.54) | (4.2) | % | |||||||||
Ground | 8.79 | 8.72 | 0.07 | 0.8 | % | |||||||||
Total U.S. Domestic Package | 9.85 | 10.04 | (0.19) | (1.9) | % | |||||||||
International Package: | ||||||||||||||
Domestic | 6.48 | 6.52 | (0.04) | (0.6) | % | |||||||||
Export | 28.63 | 29.29 | (0.66) | (2.3) | % | |||||||||
Total International Package | 16.88 | 17.04 | (0.16) | (0.9) | % | |||||||||
Consolidated | $ | 10.85 | $ | 11.10 | $ | (0.25) | (2.3) | % |
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)
Nine Months Ended | |||||||||||||||||||||||
September 30 | |||||||||||||||||||||||
2020 | 2019 | Change | % Change | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Repairs and maintenance | $ | 1,693 | $ | 1,392 | $ | 301 | 21.6 | % | |||||||||||||||
Depreciation and amortization | 1,986 | 1,730 | 256 | 14.8 | % | ||||||||||||||||||
Purchased transportation | 10,584 | 8,950 | 1,634 | 18.3 | % | ||||||||||||||||||
Fuel | 1,878 | 2,451 | (573) | (23.4) | % | ||||||||||||||||||
Other occupancy | 1,114 | 1,039 | 75 | 7.2 | % | ||||||||||||||||||
Other expenses | 4,824 | 4,093 | 731 | 17.9 | % | ||||||||||||||||||
Total other operating expenses | $ | 22,079 | $ | 19,655 | $ | 2,424 | 12.3 | % |
Earnings Per Share and Share Data - Year to Date
(unaudited)
Nine Months Ended | |||||||||||
September 30 | |||||||||||
2020 | 2019 | ||||||||||
(amounts in millions, except per share data) | |||||||||||
Numerator: | |||||||||||
Net income | $ | 4,690 | $ | 4,546 | |||||||
Denominator: | |||||||||||
Weighted-average shares | 861 | 859 | |||||||||
Deferred compensation obligations | — | — | |||||||||
Vested portion of restricted units | 5 | 6 | |||||||||
Denominator for basic earnings per share | 866 | 865 | |||||||||
Effect of dilutive securities: | |||||||||||
Restricted units | 4 | 4 | |||||||||
Stock options | — | — | |||||||||
Denominator for diluted earnings per share | 870 | 869 | |||||||||
Basic earnings per share | $ | 5.42 | $ | 5.26 | |||||||
Diluted earnings per share | $ | 5.39 | $ | 5.23 |
Certain prior year amounts have been reclassified to conform to the current year presentation.
United Parcel Service, Inc.
Consolidated Balance Sheets
September 30, 2020 (unaudited) and December 31, 2019
September 30, 2020 | December 31, 2019 | ||||||||||
(amounts in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 8,839 | $ | 5,238 | |||||||
Marketable securities | 402 | 503 | |||||||||
Accounts receivables | 9,153 | 9,645 | |||||||||
Less: Allowance for credit losses | (160) | (93) | |||||||||
Accounts receivable, net | 8,993 | 9,552 | |||||||||
Other current assets | 1,696 | 1,810 | |||||||||
Total Current Assets | 19,930 | 17,103 | |||||||||
Property, Plant and Equipment, Net | 32,164 | 30,482 | |||||||||
Operating Lease Right-Of-Use Assets | 3,022 | 2,856 | |||||||||
Goodwill | 3,816 | 3,813 | |||||||||
Intangible Assets, Net | 2,289 | 2,167 | |||||||||
Investments and Restricted Cash | 25 | 24 | |||||||||
Deferred Income Tax Assets | 277 | 330 | |||||||||
Other Non-Current Assets | 883 | 1,082 | |||||||||
Total Assets | $ | 62,406 | $ | 57,857 | |||||||
LIABILITIES AND SHAREOWNERS' EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Current maturities of long-term debt, commercial paper and finance leases | $ | 2,382 | $ | 3,420 | |||||||
Current maturities of operating leases | 560 | 538 | |||||||||
Accounts payable | 5,609 | 5,555 | |||||||||
Accrued wage and withholdings | 3,140 | 2,552 | |||||||||
Self-insurance reserves | 1,128 | 914 | |||||||||
Accrued group welfare and retirement plan contributions | 857 | 793 | |||||||||
Other current liabilities | 1,780 | 1,641 | |||||||||
Total Current Liabilities | 15,456 | 15,413 | |||||||||
Long-Term Debt and Finance Leases | 23,336 | 21,818 | |||||||||
Non-Current Operating Leases | 2,473 | 2,391 | |||||||||
Pension and Postretirement Benefit Obligations | 9,630 | 10,601 | |||||||||
Deferred Income Tax Liabilities | 2,145 | 1,632 | |||||||||
Other Non-Current Liabilities | 3,760 | 2,719 | |||||||||
Shareowners' Equity: | |||||||||||
Class A common stock | 2 | 2 | |||||||||
Class B common stock | 7 | 7 | |||||||||
Additional paid-in capital | 490 | 150 | |||||||||
Retained earnings | 11,115 | 9,105 | |||||||||
Accumulated other comprehensive loss | (6,022) | (5,997) | |||||||||
Deferred compensation obligations | 20 | 26 | |||||||||
Less: Treasury stock | (20) | (26) | |||||||||
Total Equity for Controlling Interest | 5,592 | 3,267 | |||||||||
Noncontrolling interests | 14 | 16 | |||||||||
Total Shareowners' Equity | 5,606 | 3,283 | |||||||||
Total Liabilities and Sharewoners' Equity | $ | 62,406 | $ | 57,857 |
Amounts are subject to reclassification.
United Parcel Service, Inc.
Statements of Consolidated Cash Flows
(unaudited)
(amounts in millions) | Nine Months Ended | ||||||||||||||||
September 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Cash Flows From Operating Activities: | |||||||||||||||||
Net income | $ | 4,690 | $ | 4,546 | |||||||||||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||||||||
Depreciation and amortization | 1,986 | 1,730 | |||||||||||||||
Pension and postretirement benefit expense | 481 | 566 | |||||||||||||||
Pension and postretirement benefit contributions | (1,307) | (2,321) | |||||||||||||||
Self-insurance reserves | 388 | (181) | |||||||||||||||
Deferred tax (benefit) expense | 566 | 43 | |||||||||||||||
Stock compensation expense | 508 | 716 | |||||||||||||||
Other (gains) losses | 164 | 46 | |||||||||||||||
Changes in assets and liabilities, net of effects of business acquisitions: | |||||||||||||||||
Accounts receivable | 352 | 843 | |||||||||||||||
Other assets | 391 | 778 | |||||||||||||||
Accounts payable | (450) | (914) | |||||||||||||||
Accrued wages and withholdings | 1,330 | (506) | |||||||||||||||
Other liabilities | 120 | 393 | |||||||||||||||
Other operating activities | 64 | (46) | |||||||||||||||
Net cash from operating activities | 9,283 | 5,693 | |||||||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Capital expenditures | (3,219) | (4,336) | |||||||||||||||
Proceeds from disposals of property, plant and equipment | 10 | 61 | |||||||||||||||
Purchases of marketable securities | (202) | (487) | |||||||||||||||
Sales and maturities of marketable securities | 309 | 817 | |||||||||||||||
Net change in finance receivables | 24 | 8 | |||||||||||||||
Cash paid for business acquisitions, net of cash and cash equivalents acquired | (13) | (6) | |||||||||||||||
Other investing activities | (15) | (84) | |||||||||||||||
Net cash used in investing activities | (3,106) | (4,027) | |||||||||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Net change in short-term debt | (1,924) | (1,100) | |||||||||||||||
Proceeds from long-term borrowings | 5,003 | 4,802 | |||||||||||||||
Repayments of long-term borrowings | (2,746) | (2,411) | |||||||||||||||
Purchases of common stock | (224) | (751) | |||||||||||||||
Issuances of common stock | 214 | 161 | |||||||||||||||
Dividends | (2,528) | (2,397) | |||||||||||||||
Other financing activities | (351) | (158) | |||||||||||||||
Net cash used in financing activities | (2,556) | (1,854) | |||||||||||||||
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | (19) | 6 | |||||||||||||||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 3,602 | (182) | |||||||||||||||
Cash, Cash Equivalents and Restricted Cash: | |||||||||||||||||
Beginning of period | 5,238 | 4,367 | |||||||||||||||
End of period | $ | 8,840 | $ | 4,185 |
Certain prior year amounts have been reclassified to conform to the current year presentation.
United Parcel Service, Inc.
Supplemental Analysis of Currency and Pension Discount Rates - Third Quarter
Currency Neutral Revenue Per Piece, Revenue and Operating Profit | |||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||
Three Months Ended | Currency | ||||||||||||||||||||||||||||||||||
September 30 | Neutral | ||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | Currency | 2020 (1) | % Change | ||||||||||||||||||||||||||||||
Average Revenue Per Piece: | |||||||||||||||||||||||||||||||||||
International Package: | |||||||||||||||||||||||||||||||||||
Domestic | $ | 6.61 | $ | 6.45 | 2.5 | % | $ | (0.18) | $ | 6.43 | (0.3) | % | |||||||||||||||||||||||
Export | 28.98 | 29.06 | (0.3) | % | (0.30) | 28.68 | (1.3) | % | |||||||||||||||||||||||||||
Total International Package | $ | 17.37 | $ | 16.92 | 2.7 | % | $ | (0.23) | $ | 17.14 | 1.3 | % | |||||||||||||||||||||||
Consolidated | $ | 11.06 | $ | 11.02 | 0.4 | % | $ | (0.03) | $ | 11.03 | 0.1 | % | |||||||||||||||||||||||
Three Months Ended | Currency | ||||||||||||||||||||||||||||||||||
September 30 | Neutral | ||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | Currency | 2020(1) | % Change | ||||||||||||||||||||||||||||||
Revenue (in millions): | |||||||||||||||||||||||||||||||||||
U.S. Domestic Package | $ | 13,225 | $ | 11,455 | 15.5 | % | $ | — | $ | 13,225 | 15.5 | % | |||||||||||||||||||||||
International Package | 4,087 | 3,494 | 17.0 | % | (54) | 4,033 | 15.4 | % | |||||||||||||||||||||||||||
Supply Chain & Freight | 3,926 | 3,369 | 16.5 | % | 8 | 3,934 | 16.8 | % | |||||||||||||||||||||||||||
Total revenue | $ | 21,238 | $ | 18,318 | 15.9 | % | $ | (46) | $ | 21,192 | 15.7 | % | |||||||||||||||||||||||
Three Months Ended | Currency | ||||||||||||||||||||||||||||||||||
September 30 | Neutral | ||||||||||||||||||||||||||||||||||
2020(2) | 2019(2) | % Change | Currency | 2020(3) | % Change | ||||||||||||||||||||||||||||||
As-Adjusted Operating Profit (in millions): | |||||||||||||||||||||||||||||||||||
U.S. Domestic Package | $ | 1,133 | $ | 1,242 | -8.8 | % | $ | — | $ | 1,133 | (8.8) | % | |||||||||||||||||||||||
International Package | 972 | 693 | 40.3 | % | (7) | 965 | 39.2 | % | |||||||||||||||||||||||||||
Supply Chain & Freight | 302 | 256 | 18.0 | % | 2 | 304 | 18.8 | % | |||||||||||||||||||||||||||
Total operating profit | $ | 2,407 | $ | 2,191 | 9.9 | % | $ | (5) | $ | 2,402 | 9.6 | % | |||||||||||||||||||||||
Pension Discount Rate Neutral Operating Profit and Margin
(unaudited)
Three Months Ended September 30 | Pension Discount Rate Neutral | ||||||||||||||||||||||||||||||||||
2020(2) | 2019(2) | % Change | Pension | 2020(4) | % Change | ||||||||||||||||||||||||||||||
As-Adjusted Operating profit (in millions): | |||||||||||||||||||||||||||||||||||
U.S. Domestic Package | $ | 1,133 | $ | 1,242 | (8.8) | % | $ | 63 | $ | 1,196 | (3.7) | % | |||||||||||||||||||||||
International Package | 972 | 693 | 40.3 | % | 4 | 976 | 40.8 | % | |||||||||||||||||||||||||||
Supply Chain & Freight | 302 | 256 | 18.0 | % | 7 | 309 | 20.7 | % | |||||||||||||||||||||||||||
Total operating profit | $ | 2,407 | $ | 2,191 | 9.9 | % | $ | 74 | $ | 2,481 | 13.2 | % | |||||||||||||||||||||||
Three Months Ended September 30 | Pension Discount Rate Neutral | ||||||||||||||||||||||||||||||||||
2020(2) | 2019(2) | % Change | Pension | 2020(4) | % Change | ||||||||||||||||||||||||||||||
As- Adjusted Operating margin: | |||||||||||||||||||||||||||||||||||
U.S. Domestic Package | 8.6 | % | 10.8 | % | (2.2) | % | 0.4 | % | 9.0 | % | (1.8) | % | |||||||||||||||||||||||
International Package | 23.8 | % | 19.8 | % | 4.0 | % | 0.1 | % | 23.9 | % | 4.1 | % | |||||||||||||||||||||||
Supply Chain & Freight | 7.7 | % | 7.6 | % | 0.1 | % | 0.2 | % | 7.9 | % | 0.3 | % | |||||||||||||||||||||||
Total operating margin | 11.3 | % | 12.0 | % | (0.7) | % | 0.4 | % | 11.7 | % | (0.3) | % | |||||||||||||||||||||||
(1) Amounts adjusted for period over period foreign currency exchange rate and hedging differences | |||||||||||||||||||||||||||||||||||
(2) Amounts adjusted for transformation strategy costs | |||||||||||||||||||||||||||||||||||
(3) Amounts adjusted for transformation strategy costs and period over period foreign currency exchange rate and hedging differences | |||||||||||||||||||||||||||||||||||
(4) Amounts adjusted for transformation strategy costs and period over period impact of discount rates on pension service cost |
Certain prior year have been reclassified to conform to the current year presentation.
United Parcel Service, Inc.
Supplemental Analysis of Currency and Pension Discount Rates - Year to Date
Currency Neutral Revenue Per Piece, Revenue and Operating Profit | |||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||
Nine Months Ended | Currency | ||||||||||||||||||||||||||||||||||
September 30 | Neutral | ||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | Currency | 2020(1) | % Change | ||||||||||||||||||||||||||||||
Average Revenue Per Piece: | |||||||||||||||||||||||||||||||||||
International Package: | |||||||||||||||||||||||||||||||||||
Domestic | $ | 6.48 | $ | 6.52 | (0.6) | % | $ | 0.02 | $ | 6.50 | (0.3) | % | |||||||||||||||||||||||
Export | 28.63 | 29.29 | (2.3) | % | (0.02) | 28.61 | (2.3) | % | |||||||||||||||||||||||||||
Total International Package | $ | 16.88 | $ | 17.04 | (0.9) | % | $ | — | $ | 16.88 | (0.9) | % | |||||||||||||||||||||||
Consolidated | $ | 10.85 | $ | 11.10 | (2.3) | % | $ | — | $ | 10.85 | (2.3) | % | |||||||||||||||||||||||
Nine Months Ended | Currency | ||||||||||||||||||||||||||||||||||
September 30 | Neutral | ||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | Currency | 2020(1) | % Change | ||||||||||||||||||||||||||||||
Revenue (in millions): | |||||||||||||||||||||||||||||||||||
U.S. Domestic Package | $ | 37,755 | $ | 33,085 | 14.1 | % | $ | — | $ | 37,755 | 14.1 | % | |||||||||||||||||||||||
International Package | 11,175 | 10,458 | 6.9 | % | 3 | 11,178 | 6.9 | % | |||||||||||||||||||||||||||
Supply Chain & Freight | 10,802 | 9,983 | 8.2 | % | 108 | 10,910 | 9.3 | % | |||||||||||||||||||||||||||
Total revenue | $ | 59,732 | $ | 53,526 | 11.6 | % | $ | 111 | $ | 59,843 | 11.8 | % | |||||||||||||||||||||||
Nine Months Ended | Currency | ||||||||||||||||||||||||||||||||||
September 30 | Neutral | ||||||||||||||||||||||||||||||||||
2020(2) | 2019(2) | % Change | Currency | 2020(3) | % Change | ||||||||||||||||||||||||||||||
As-Adjusted Operating Profit (in millions): | |||||||||||||||||||||||||||||||||||
U.S. Domestic Package | $ | 2,749 | $ | 3,162 | (13.1) | % | $ | — | $ | 2,749 | (13.1) | % | |||||||||||||||||||||||
International Package | 2,372 | 1,970 | 20.4 | % | (37) | 2,335 | 18.5 | % | |||||||||||||||||||||||||||
Supply Chain & Freight | 727 | 740 | (1.8) | % | (4) | 723 | (2.3) | % | |||||||||||||||||||||||||||
Total operating profit | $ | 5,848 | $ | 5,872 | (0.4) | % | $ | (41) | $ | 5,807 | (1.1) | % | |||||||||||||||||||||||
Pension Discount Rate Neutral Operating Profit and Margin
(unaudited)
Nine Months Ended September 30 | Pension Discount Rate Neutral | ||||||||||||||||||||||||||||||||||
2020(2) | 2019(2) | % Change | Pension | 2020(4) | % Change | ||||||||||||||||||||||||||||||
As-Adjusted Operating profit (in millions): | |||||||||||||||||||||||||||||||||||
U.S. Domestic Package | $ | 2,749 | $ | 3,162 | (13.1) | % | $ | 188 | $ | 2,937 | (7.1) | % | |||||||||||||||||||||||
International Package | 2,372 | 1,970 | 20.4 | % | 12 | 2,384 | 21.0 | % | |||||||||||||||||||||||||||
Supply Chain & Freight | 727 | 740 | (1.8) | % | 21 | 748 | 1.1 | % | |||||||||||||||||||||||||||
Total operating profit | $ | 5,848 | $ | 5,872 | (0.4) | % | $ | 221 | $ | 6,069 | 3.4 | % | |||||||||||||||||||||||
Nine Months Ended September 30 | Pension Discount Rate Neutral | ||||||||||||||||||||||||||||||||||
2020(2) | 2019(2) | % Change | Pension | 2020(4) | % Change | ||||||||||||||||||||||||||||||
As- Adjusted Operating margin: | |||||||||||||||||||||||||||||||||||
U.S. Domestic Package | 7.3 | % | 9.6 | % | (2.3) | % | 0.5 | % | 7.8 | % | (1.8) | % | |||||||||||||||||||||||
International Package | 21.2 | % | 18.8 | % | 2.4 | % | 0.1 | % | 21.3 | % | 2.5 | % | |||||||||||||||||||||||
Supply Chain & Freight | 6.7 | % | 7.4 | % | (0.7) | % | 0.2 | % | 6.9 | % | (0.5) | % | |||||||||||||||||||||||
Total operating margin | 9.8 | % | 11.0 | % | (1.2) | % | 0.4 | % | 10.2 | % | (0.8) | % | |||||||||||||||||||||||
(1) Amounts adjusted for period over period foreign currency exchange rate and hedging differences | |||||||||||||||||||||||||||||||||||
(2) Amounts adjusted for transformation strategy costs | |||||||||||||||||||||||||||||||||||
(3) Amounts adjusted for transformation strategy costs and period over period foreign currency exchange rate and hedging differences | |||||||||||||||||||||||||||||||||||
(4) Amounts adjusted for transformation strategy costs and period over period impact of discount rates on pension service cost |
Certain prior year have been reclassified to conform to the current year presentation.
United Parcel Service, Inc.
Non-GAAP Schedules
Reconciliation of GAAP and Non-GAAP Income Statement Data
(in millions, except per share amounts):
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
As-Reported (GAAP) | Transformation Strategy Costs(1) | As-Adjusted (Non-GAAP) | As-Reported (GAAP) | Transformation Strategy Costs(2) | As-Adjusted (Non-GAAP) | ||||||||||||||||||||||||||||||
Operating profit: | |||||||||||||||||||||||||||||||||||
U.S. Domestic Package | $ | 1,098 | $ | 35 | $ | 1,133 | $ | 1,216 | $ | 26 | $ | 1,242 | |||||||||||||||||||||||
International Package | 966 | 6 | 972 | 667 | 26 | 693 | |||||||||||||||||||||||||||||
Supply Chain & Freight | 299 | 3 | 302 | 245 | 11 | 256 | |||||||||||||||||||||||||||||
Total operating profit | $ | 2,363 | $ | 44 | $ | 2,407 | $ | 2,128 | $ | 63 | $ | 2,191 | |||||||||||||||||||||||
Income before income taxes | $ | 2,525 | $ | 44 | $ | 2,569 | $ | 2,206 | $ | 63 | $ | 2,269 | |||||||||||||||||||||||
Income tax expense | $ | 568 | $ | 11 | $ | 579 | $ | 456 | $ | 16 | $ | 472 | |||||||||||||||||||||||
Net income | $ | 1,957 | $ | 33 | $ | 1,990 | $ | 1,750 | $ | 47 | $ | 1,797 | |||||||||||||||||||||||
Diluted earnings per share | $ | 2.24 | $ | 0.04 | $ | 2.28 | $ | 2.01 | $ | 0.06 | $ | 2.07 |
(1) Transformation costs of $44 million reflect other employee benefits costs of $18 million and other costs of $26 million.
(2) Transformation costs of $63 million reflect other employee benefits costs of $41 million and other costs of $22 million.
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
As-Reported (GAAP) | Transformation Strategy Costs(1) | As-Adjusted (Non-GAAP) | As-Reported (GAAP) | Transformation Strategy Costs(2) | As-Adjusted (Non-GAAP) | ||||||||||||||||||||||||||||||
Operating profit: | |||||||||||||||||||||||||||||||||||
U.S. Domestic Package | $ | 2,644 | $ | 105 | $ | 2,749 | $ | 3,090 | $ | 72 | $ | 3,162 | |||||||||||||||||||||||
International Package | 2,288 | 84 | 2,372 | 1,858 | 112 | 1,970 | |||||||||||||||||||||||||||||
Supply Chain & Freight | 715 | 12 | 727 | 717 | 23 | 740 | |||||||||||||||||||||||||||||
Total operating profit | $ | 5,647 | $ | 201 | $ | 5,848 | $ | 5,665 | $ | 207 | $ | 5,872 | |||||||||||||||||||||||
Income before income taxes | $ | 6,132 | $ | 201 | $ | 6,333 | $ | 5,850 | $ | 207 | $ | 6,057 | |||||||||||||||||||||||
Income tax expense | $ | 1,442 | $ | 50 | $ | 1,492 | $ | 1,304 | $ | 50 | $ | 1,354 | |||||||||||||||||||||||
Net income | $ | 4,690 | $ | 151 | $ | 4,841 | $ | 4,546 | $ | 157 | $ | 4,703 | |||||||||||||||||||||||
Diluted earnings per share | $ | 5.39 | $ | 0.17 | $ | 5.56 | $ | 5.23 | $ | 0.18 | $ | 5.41 |
(1) Transformation costs of $201 million reflect other employee benefits costs of $111 million and other costs of $90 million.
(2) Transformation costs of $207 million reflect other employee benefits costs of $149 million and other costs of $58 million.
Reconciliation of Adjusted Capital Expenditures and Free Cash Flow (Non-GAAP measures) | |||||||||||
(in millions): | |||||||||||
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cash flows from operating activities | $ | 9,283 | $ | 5,693 | |||||||
Capital expenditures | (3,219) | (4,336) | |||||||||
Principal repayments of finance lease obligations | (136) | (120) | |||||||||
Adjusted Capital Expenditures (Non-GAAP measure) | $ | (3,355) | $ | (4,456) | |||||||
Proceed from disposal of PP&E | 10 | 61 | |||||||||
Net change in finance receivables | 24 | 8 | |||||||||
Other investing activities | (15) | (84) | |||||||||
Adjusted free cash flow (Non-GAAP measure) | $ | 5,947 | $ | 1,222 | |||||||
Discretionary pension contributions | 1,000 | 2,000 | |||||||||
Adjusted Free cash flow (Non-GAAP measure) excluding discretionary pension contributions | $ | 6,947 | $ | 3,222 |
Amounts are subject to reclassification.
United Parcel Service, Inc.
Aircraft Fleet - as of September 30, 2020
(unaudited)
Description | Owned and Finance Leases | Operating Leases & Charters from Others | On Order | Under Option | ||||||||||
Operating: | ||||||||||||||
Boeing 757-200 | 75 | — | — | — | ||||||||||
Boeing 767-300 | 66 | — | 6 | — | ||||||||||
Boeing 767-300BCF | 4 | — | — | — | ||||||||||
Boeing 767-300BDSF | 3 | — | 1 | — | ||||||||||
Airbus A300-600 | 52 | — | — | — | ||||||||||
Boeing MD-11 | 39 | — | 3 | — | ||||||||||
Boeing 747-400F | 11 | — | — | — | ||||||||||
Boeing 747-400BCF | 2 | — | — | — | ||||||||||
Boeing 747-8F | 17 | — | 11 | — | ||||||||||
Other | — | 297 | — | — | ||||||||||
Total | 269 | 297 | 21 | — | ||||||||||