UPS 2007 Annual Report Download - page 109

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 17. QUARTERLY INFORMATION (unaudited)
First Quarter Second Quarter Third Quarter Fourth Quarter
2007 2006 2007 2006 2007 2006 2007 2006
Revenue:
U.S. Domestic Package .......... $ 7,552 $ 7,463 $ 7,579 $ 7,462 $ 7,545 $ 7,402 $ 8,309 $ 8,129
International Package ............ 2,385 2,161 2,500 2,233 2,529 2,251 2,867 2,444
Supply Chain & Freight .......... 1,969 1,897 2,110 2,041 2,131 2,009 2,216 2,055
Total revenue .............. 11,906 11,521 12,189 11,736 12,205 11,662 13,392 12,628
Operating profit (loss):
U.S. Domestic Package .......... 941 1,185 1,192 1,234 1,228 1,208 (4,892) 1,296
International Package ............ 371 395 475 414 428 387 557 514
Supply Chain & Freight .......... 46 (25) 98 47 52 (19) 82 (1)
Total operating profit (loss) . . . 1,358 1,555 1,765 1,695 1,708 1,576 (4,253) 1,809
Net income (loss) ................... $ 843 $ 975 $ 1,104 $ 1,061 $ 1,076 $ 1,038 $ (2,641) $ 1,128
Earnings (loss) per share:
Basic ......................... $ 0.79 $ 0.89 $ 1.04 $ 0.98 $ 1.02 $ 0.96 $ (2.52) $ 1.05
Diluted ....................... $ 0.78 $ 0.89 $ 1.04 $ 0.97 $ 1.02 $ 0.96 $ (2.52) $ 1.04
First quarter 2007 operating profit includes the aircraft impairment charge of $221 million as discussed in
Note 1 ($159 million U.S. Domestic Package and $62 million International Package), and the SVSO charge of
$68 million as discussed in Note 16 ($53 million U.S. Domestic Package, $7 million International Package, and
$8 million Supply Chain & Freight). The after-tax impact of these two charges reduced first quarter 2007 net
income by $184 million, which reduced basic earnings per share by $0.17, and diluted earnings per share by
$0.18.
Third quarter 2007 operating profit includes the $46 million charge related to the restructuring of our France
forwarding and logistics operations within our Supply Chain & Freight reporting segment, as discussed in Note
16. The after-tax impact of this charge reduced third quarter 2007 net income by $31 million, which reduced
basic and diluted earnings per share by $0.03.
Fourth quarter 2007 operating profit includes the $6.100 billion charge in the U.S. Domestic Package
segment related to the withdrawal from the Central States Pension Fund, as discussed in Note 5. The after-tax
impact of this charge reduced fourth quarter 2007 net income by $3.772 billion, which reduced basic earnings per
share by $3.60 and diluted earnings per share by $3.59.
F-46