UPS 2005 Annual Report Download - page 74

UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The carrying value of finance receivables at December 31, 2005, by contractual maturity, is shown below
(in millions). Actual maturities may differ from contractual maturities because some borrowers have the right to
prepay these receivables without prepayment penalties.
Carrying
Value
Due in one year or less ....................................................... $423
Due after one year through three years ........................................... 82
Due after three years through five years .......................................... 61
Due after five years .......................................................... 336
$902
Based on interest rates for financial instruments with similar terms and maturities, the estimated fair value
of finance receivables is approximately $883 and $991 million as of December 31, 2005 and 2004, respectively.
At December 31, 2005, we had unfunded loan commitments totaling $416 million, consisting of standby letters
of credit of $42 million and other unfunded lending commitments of $374 million.
NOTE 4. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment as of December 31 consists of the following (in millions):
2005 2004
Vehicles ....................................................... $ 4,286 $ 3,784
Aircraft (including aircraft under capitalized leases) ..................... 12,289 11,590
Land .......................................................... 968 760
Buildings....................................................... 2,404 2,164
Leasehold improvements .......................................... 2,469 2,347
Plantequipment ................................................. 4,982 4,641
Technology equipment ............................................ 1,639 1,596
Equipment under operating lease .................................... 87 57
Construction-in-progress .......................................... 433 539
29,557 27,478
Less: Accumulated depreciation and amortization ....................... (14,268) (13,505)
$ 15,289 $ 13,973
NOTE 5. EMPLOYEE BENEFIT PLANS
We sponsor various retirement and pension plans, including defined benefit and defined contribution plans
which cover our employees worldwide. In the U.S. we maintain the following defined benefit pension plans (the
“Plans”): UPS Retirement Plan, UPS Pension Plan, Retirement Plan for employees of Overnite Transportation
Company, Pension Plan for Employees of Motor Cargo (a subsidiary of Overnite), and several non-qualified
plans including the UPS Excess Coordinating Benefit Plan.
We also sponsor various retirement and pension plans covering certain of our non-U.S. employees. The
majority of our non-U.S. obligations are for pension plans in Canada and the United Kingdom (including the
Lynx acquisition in 2005). In addition, many of our non-U.S. employees are covered by government-sponsored
retirement and pension plans. We are not directly responsible for providing benefits to participants of
government-sponsored plans. In the pension benefits disclosures presented below, these non-U.S. plans are
aggregated with our U.S. plans, as the non-U.S. plans we sponsor are not significant for disclosure purposes.
The UPS Retirement Plan is noncontributory and includes substantially all eligible employees of
participating domestic subsidiaries who are not members of a collective bargaining unit. The Plan generally
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