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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 18. QUARTERLY INFORMATION (unaudited)
First Quarter Second Quarter Third Quarter Fourth Quarter
2008 2007 2008 2007 2008 2007 2008 2007
Revenue:
U.S. Domestic Package ..........$ 7,735 $ 7,552 $ 7,714 $ 7,579 $ 7,841 $ 7,545 $ 7,988 $ 8,309
International Package ........... 2,759 2,385 2,948 2,500 2,949 2,529 2,637 2,867
Supply Chain & Freight .......... 2,181 1,969 2,339 2,110 2,323 2,131 2,072 2,216
Total revenue .............. 12,675 11,906 13,001 12,189 13,113 12,205 12,697 13,392
Operating profit (loss):
U.S. Domestic Package .......... 959 941 899 1,192 1,117 1,228 932 (4,892)
International Package ........... 421 371 407 475 386 428 366 557
Supply Chain & Freight .......... 113 46 148 98 129 52 (495) 82
Total operating profit (loss) . . . 1,493 1,358 1,454 1,765 1,632 1,708 803 (4,253)
Net income (loss) ...................$ 906 $ 843 $ 873 $ 1,104 $ 970 $ 1,076 $ 254 $ (2,641)
Earnings (loss) per share:
Basic ........................$ 0.87 $ 0.79 $ 0.86 $ 1.04 $ 0.96 $ 1.02 $ 0.25 $ (2.52)
Diluted .......................$ 0.87 $ 0.78 $ 0.85 $ 1.04 $ 0.96 $ 1.02 $ 0.25 $ (2.52)
Fourth quarter 2008 operating profit includes the goodwill impairment charge of $548 million in our Supply
Chain & Freight segment and the intangible asset impairment charge of $27 million in our International Package
segment, as discussed in Note 6. There were no tax benefits related to these two charges, therefore fourth quarter
2008 net income was reduced by $575 million, which reduced basic and diluted earnings per share by $0.58.
First quarter 2007 operating profit includes the aircraft impairment charge of $221 million as discussed in
Note 4 ($159 million U.S. Domestic Package and $62 million International Package), and the SVSO charge of
$68 million as discussed in Note 17 ($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
17. 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.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
97