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70 UPS Annual Report 2004
NOTE 17. QUARTERLY INFORMATION (UNAUDITED)
First Quarter Second Quarter Third Quarter Fourth Quarter
2004 2003 2004 2003 2004 2003 2004 2003
Revenue:
U.S. domestic package $ 6,540 $ 6,020 $ 6,480 $ 6,124 $ 6,494 $ 6,219 $ 7,096 $ 6,659
International package 1,619 1,302 1,613 1,371 1,666 1,370 1,864 1,518
Non-package 760 693 778 731 792 723 880 755
Total revenue 8,919 8,015 8,871 8,226 8,952 8,312 9,840 8,932
Operating profit:
U.S. domestic package 831 704 892 832 857 825 765 911
International package 269 134 272 158 262 176 318 241
Non-package 117 107 146 90 139 146 121 121
Total operating profit 1,217 945 1,310 1,080 1,258 1,147 1,204 1,273
Net income $ 759 $ 611 $ 818 $ 692 $ 890 $ 739 $ 866 $ 856
Earnings per share:
Basic $ 0.67 $ 0.54 $ 0.73 $ 0.61 $ 0.79 $ 0.66 $ 0.77 $ 0.76
Diluted $ 0.67 $ 0.54 $ 0.72 $ 0.61 $ 0.78 $ 0.65 $ 0.76 $ 0.75
First quarter 2003 net income reflects a charge for an impairment of investments ($37 million after-tax, $0.03 per diluted share)
and a credit to tax expense upon the resolution of various tax contingencies ($55 million, $0.05 per diluted share). Second quarter
2003 net income was impacted by the gain on the sale of Mail Technologies ($14 million after-tax, $0.01 per diluted share). Third
quarter 2003 net income reflects the gain on sale of Aviation Technologies ($15 million after-tax, $0.01 per diluted share) and the
credit to tax expense from a favorable ruling on the tax treatment of jet engine maintenance costs ($22 million, $0.02 per diluted
share). Fourth quarter 2003 net income was impacted by a gain on the redemption of long-term debt ($18 million after-tax, $0.02
per diluted share) and a credit to income tax expense for a lower effective state tax rate ($39 million, $0.03 per diluted share).
Third quarter 2004 net income includes a credit to tax expense ($99 million, $0.09 per diluted share) related to the resolution of
various tax matters. Fourth quarter 2004 net income includes an impairment charge ($70 million after-tax, $0.06 per diluted share)
on Boeing 727, 747, and McDonnell Douglas DC-8 aircraft, and related engines and parts, and a charge to pension expense ($40 mil-
lion after-tax, $0.04 per diluted share) resulting from the consolidation of data collection systems. Fourth quarter 2004 net income
also includes credits to income tax expense ($43 million, $0.04 per diluted share) related to various items, including the resolution of
certain tax matters, the removal of a portion of the valuation allowances on certain deferred tax assets on net operating loss carryfor-
wards, and an adjustment for identified tax contingency items.
Notes to consolidated financial statements