UPS 2007 Annual Report Download - page 78

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The carrying value of finance receivables at December 31, 2007, 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 ....................................................... $474
Due after one year through three years ........................................... 69
Due after three years through five years .......................................... 43
Due after five years .......................................................... 326
$912
Based on interest rates for financial instruments with similar terms and maturities, the estimated fair value
of finance receivables is approximately $895 and $795 million as of December 31, 2007 and 2006, respectively.
At December 31, 2007, we had unfunded loan commitments totaling $860 million, consisting of standby letters
of credit of $117 million and other unfunded lending commitments of $743 million.
NOTE 4. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment as of December 31 consists of the following (in millions):
2007 2006
Vehicles ....................................................... $ 5,295 $ 4,970
Aircraft (including aircraft under capitalized leases) ..................... 13,541 13,162
Land .......................................................... 1,056 1,026
Buildings ....................................................... 2,837 2,667
Leasehold improvements .......................................... 2,604 2,496
Plant equipment ................................................. 5,537 5,230
Technology equipment ............................................ 1,699 1,673
Equipment under operating leases ................................... 153 142
Construction-in-progress .......................................... 889 715
33,611 32,081
Less: Accumulated depreciation and amortization ....................... (15,948) (15,302)
$ 17,663 $ 16,779
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: UPS
Retirement Plan, UPS Pension Plan, UPS IBT Pension Plan, and several non-qualified plans including the UPS
Excess Coordinating Benefit Plan. Effective January 1, 2006, the qualified defined benefit plans covering
Overnite and Motor Cargo employees were merged with the UPS Retirement Plan and UPS Pension Plan.
We also sponsor various defined benefit plans covering certain of our International employees. The majority
of our International obligations are for defined benefit plans in Canada and the United Kingdom (including the
Lynx acquisition in 2005). In addition, many of our International employees are covered by government-
sponsored retirement and pension plans. We are not directly responsible for providing benefits to participants of
government-sponsored plans.
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