UPS 2006 Annual Report Download - page 91

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
vote per share. Class A shares are primarily held by UPS employees and retirees, and these shares are fully
convertible into Class B shares at any time. Class B shares are publicly traded on the New York Stock Exchange
(NYSE) under the symbol “UPS.” Class A and B shares both have a $0.01 par value, and as of December 31,
2006, there were 4.6 billion Class A shares and 5.6 billion Class B shares authorized to be issued. Additionally,
there are 200 million preferred shares, with no par value, authorized to be issued; as of December 31, 2006, no
preferred shares had been issued.
The following is a rollforward of our common stock, additional paid-in capital, and retained earnings
accounts (in millions, except per share amounts):
2006 2005 2004
Shares Dollars Shares Dollars Shares Dollars
Class A Common Stock
Balance at beginning of year .................. 454 $ 5 515 $ 5 571 $ 6
Common stock purchases ..................... (17) — (16) — (12) —
Stock award plans ........................... 3 — 2 — 12 —
Common stock issuances ..................... 2 — 3 — 3 —
Conversions of Class A to Class B common
stock ................................... (41) (1) (50) — (59) (1)
Class A shares issued at end of year ............. 401 $ 4 454 $ 5 515 $ 5
Class B Common Stock
Balance at beginning of year .................. 646 $ 6 614 $ 6 560 $ 5
Common stock purchases ..................... (15) — (18) — (5) —
Conversions of Class A to Class B common
stock ................................... 41 1 50 — 59 1
Class B shares issued at end of year ............. 672 $ 7 646 $ 6 614 $ 6
Additional Paid-In Capital
Balance at beginning of year .................. $ — $ 417 $ 662
Stock award plans ........................... 371 335 677
Common stock purchases ..................... (539) (922) (1,075)
Common stock issuances ..................... 168 170 153
Balance at end of year ....................... $ — $ — $ 417
Retained Earnings
Balance at beginning of year .................. $17,037 $16,192 $14,356
Net income ................................ 4,202 3,870 3,333
Dividends ($1.52, $1.32, and $1.12 per share) ..... (1,647) (1,468) (1,262)
Common stock purchases ..................... (1,916) (1,557) (235)
Balance at end of year ....................... $17,676 $17,037 $16,192
We repurchased a total of 32.6 million shares of Class A and Class B common stock for $2.455 billion in
2006, and 33.9 million shares for $2.479 billion in 2005. As of December 31, 2006, we had $936 million of our
share repurchase authorization remaining. In February 2007, the Board of Directors approved an increase in our
share repurchase authorization to $2.0 billion, which replaces the remaining amount available under our July
2006 share repurchase authorization.
F-31