UPS 2007 Annual Report Download - page 92

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 10. SHAREOWNERS’ EQUITY
Capital Stock, Additional Paid-In Capital, and Retained Earnings
We maintain two classes of common stock, which are distinguished from each other by their respective
voting rights. Class A shares of UPS are entitled to 10 votes per share, whereas Class B shares are entitled to one
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,
2007, 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, 2007, 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):
2007 2006 2005
Shares Dollars Shares Dollars Shares Dollars
Class A Common Stock
Balance at beginning of year .................. 401 $ 4 454 $ 5 515 $ 5
Common stock purchases ..................... (18) (1) (17) — (16) —
Stock award plans ........................... 3 — 3 — 2 —
Common stock issuances ..................... 3 — 2 — 3 —
Conversions of Class A to Class B common
stock ................................... (40) — (41) (1) (50) —
Class A shares issued at end of year ............. 349 $ 3 401 $ 4 454 $ 5
Class B Common Stock
Balance at beginning of year .................. 672 $ 7 646 $ 6 614 $ 6
Common stock purchases ..................... (18) — (15) — (18) —
Conversions of Class A to Class B common
stock ................................... 40 — 41 1 50 —
Class B shares issued at end of year ............. 694 $ 7 672 $ 7 646 $ 6
Additional Paid-In Capital
Balance at beginning of year .................. $ — $ — $ 417
Stock award plans ........................... 462 371 335
Common stock purchases ..................... (627) (539) (922)
Common stock issuances ..................... 165 168 170
Balance at end of year ....................... $ — $ — $ —
Retained Earnings
Balance at beginning of year .................. $17,676 $17,037 $16,192
Net income ................................ 382 4,202 3,870
Adoption of FIN 48 ......................... (104) — —
Dividends ($1.68, $1.52, and $1.32 per share) ..... (1,778) (1,647) (1,468)
Common stock purchases ..................... (1,990) (1,916) (1,557)
Balance at end of year ....................... $14,186 $17,676 $17,037
F-29