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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The adoption of FIN 48 is discussed further in Note 13.
For the years ended December 31, 2007, 2006 and 2005, we repurchased a total of 35.9, 32.6, and
33.9 million shares of Class A and Class B common stock for $2.618, $2.455, and $2.479 billion, respectively. In
January 2008, our Board of Directors authorized an increase in our share repurchase authority to $10.0 billion.
Unless terminated earlier by the resolution of our Board, the program will expire when we have purchased all
shares authorized for repurchase under the program.
Accumulated Other Comprehensive Income (Loss)
We incur activity in AOCI for unrealized holding gains and losses on available-for-sale securities, foreign
currency translation adjustments, unrealized gains and losses from derivatives that qualify as hedges of cash
flows, and unrecognized pension and postretirement benefit costs. The activity in AOCI is as follows (in
millions):
2007 2006 2005
Foreign currency translation gain (loss):
Balance at beginning of year .......................................... $ (109) $ (163) $(127)
Aggregate adjustment for the year ...................................... 190 54 (36)
Balance at end of year ............................................... 81 (109) (163)
Unrealized gain (loss) on marketable securities, net of tax:
Balance at beginning of year .......................................... 12 11 (5)
Current period changes in fair value (net of tax effect of $4, $(3), and $0) ...... 6 (4) —
Reclassification to earnings (net of tax effect of $(5), $3, and $10) ............ (9) 5 16
Balance at end of year ............................................... 9 12 11
Unrealized gain (loss) on cash flow hedges, net of tax:
Balance at beginning of year .......................................... 68 83 (29)
Current period changes in fair value (net of tax effect of $(177), $(4), and
$81) ........................................................... (294) (7) 135
Reclassification to earnings (net of tax effect of $(14), $(5), and $(14)) ........ (24) (8) (23)
Balance at end of year ............................................... (250) 68 83
Unrecognized pension and postretirement benefit costs, net of tax:
Balance at beginning of year .......................................... (2,176) (95) (81)
Reclassification to earnings (net of tax effect of $73, $0, and $0) ............. 122 — —
Unrecognized net actuarial gain (net of tax effect of $776, $0, and $0) ......... 1,305 — —
Unrecognized prior service cost (net of tax effect of $(665), $0, and $0) ....... (1,104) — —
Minimum pension liability adjustment (net of tax effect of $0, $11, and $(8)) . . . — 16 (14)
FAS 158 transition adjustment (net of tax effect of $0, $(1,258), and $0) ....... — (2,097) —
Balance at end of year ............................................... (1,853) (2,176) (95)
Accumulated other comprehensive income (loss) at end of year .................. $(2,013) $(2,205) $(164)
As discussed in Note 1, we adopted the recognition and disclosure provisions of FAS 158 on December 31,
2006. The adoption of FAS 158 required us to eliminate the previous minimum pension liability charge to AOCI,
and to record a charge, net of tax, to AOCI representing the unrecognized pension and postretirement benefit
costs as of December 31, 2006.
F-30