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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Other Plans
We also contribute to several multi-employer pension plans for which the previous disclosure information is
not determinable. Amounts charged to operations for pension contributions to these multi-employer plans were
$1.405, $1.234, and $1.111 billion during 2006, 2005, and 2004, respectively.
We also contribute to several multi-employer health and welfare plans that cover both active and retired
employees for which the previous disclosure information is not determinable. Amounts charged to operations for
contributions to multi-employer health and welfare plans were $862, $798, and $761 million during 2006, 2005,
and 2004, respectively.
We also sponsor a defined contribution plan for all employees not covered under collective bargaining
agreements. The Company matches, in shares of UPS common stock, a portion of the participating employees’
contributions. Matching contributions charged to expense were $113, $105, and $94 million for 2006, 2005, and
2004, respectively.
Contributions are also made to defined contribution money purchase plans under certain collective
bargaining agreements. Amounts charged to expense were $62, $55, and $52 million for 2006, 2005, and 2004,
respectively.
NOTE 6. GOODWILL AND INTANGIBLE ASSETS
The following table indicates the allocation of goodwill by reportable segment (in millions):
U.S. Domestic
Package
International
Package
Supply Chain &
Freight Consolidated
December 31, 2004 balance ...................... $— 141 1,114 1,255
Acquired................................. — 134 836 970
Purchase Accounting Adjustments ............ — 11 335 346
Currency / Other .......................... — 4 (26) (22)
December 31, 2005 balance ...................... — $290 $2,259 $2,549
Acquired................................. — 28 4 32
Purchase Accounting Adjustments ............ — (39) (60) (99)
Currency / Other .......................... — 11 40 51
December 31, 2006 balance ...................... $— $290 $2,243 $2,533
The goodwill acquired in the International Package segment during 2006 resulted primarily from the
purchase of the express operations of Sinotrans Air Transportation Development Co. Ltd. in China, offset by
adjustments to the purchase price allocation of Lynx Express Delivery Ltd. The decrease in goodwill for the
Supply Chain & Freight segment during 2006 resulted primarily from finalizing the purchase price allocation of
Overnite Corp. The goodwill acquired in the International Package segment during 2005 resulted primarily from
the purchase of Lynx Express Delivery Ltd. in the United Kingdom, Messenger Service Stolica S.A. in Poland,
and the express operations of Sinotrans Air Transportation Development Co. Ltd. in China. The goodwill
acquired in the Supply Chain & Freight segment in 2005 resulted primarily from the purchase of Overnite Corp.,
as well as purchase accounting adjustments resulting from the restructuring costs incurred in exiting certain
activities from the Menlo Worldwide Forwarding operations acquired previously (See Note 16 for further
discussion of the restructuring). The currency / other balance includes the translation effect on goodwill from
fluctuations in currency exchange rates, as well as escrow reimbursements from acquisitions completed
previously. See Note 7 for further discussion of these business acquisition transactions.
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